Full text of Commercial and Financial Chronicle : September 20, 1956, Vol. 184, No. 5570

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E
EVCg..

Volume 184

Number 5570

New York 7,.

EDITORIAL
:•

/W.r,-

IFe See
As

Suez

the

affair

its

pursues

fM■ * £5®^

day to day, it becomes more
more important that the rank and file in this
cduntry (and in others, too, for that matter) keep
tHe issues in' perspective, and above" all avoid

he may

be just that. He in
all conscience is given to the same sort of half
irisane, inflammatory oratory, and, apparently is t
a Victim of the same kind of
megalomania. Given J
the same opportunity that Hitler had, he might
make similarly serious trouble for the world:
^

unexpected results of our policies in the underdeveloped
countries, which has served to turn near and Far Eastern
countries against us, and, in .turn,.has caused European
anti-Americanism. Dr. Palyi. calls for "a halt to the
Dulles-Eden policy of perverted appeasement" in the

profitable chemical

and

industry—-par¬
which.: already accounts for ;

Middle East, and avers "no, Moslem sheik or Buddhist
president will: throw himself into the Soviet's; arms,

;

eration!

increase
or

here.
can

She,
from

usual, wants to catch all the:fiSh-$heA
these troubled waters, butv the real

of trouble is the world-wide revolt

source

■'
.

seems

''rnlnnialism

nnH

colonialism,

ana

thp

tne

rsmnsnt

rampant

Continued

on page

£lmost

24%

U.. S;

Or.

SECURITIES NOW IN REGISTRATION

Underwriters,

—

of issues

public hygiene;

In Ceylon,

$50

Meichior

form

Palyi

modern

technical

service.

investment,,.1 without .the ne¬
cessity of a long wait, and without causing fundamental
changes in the indigenpus ways of life;
\
:
/
It used to be said that the merchants follow the flag;
Presently, with or without the flag, the doctors and the
public hygiehists march in. Wherever they go, deatlt
takes a holiday — and populations rise by leaps and
bounds.
With- the modern medicixie man comes, often

was

the

page

dealers

Continued

investors

and

registered

now

polygamy

'
\
v
/
important factor is

It creates miraculous results without

chemical

enough

Continued

the fact that

to be

vft1 ".kmajor

porate securities are afforded a complete picture

DEALERS

the

pounds. : Interestingly

general

mortality rate. In- backward coun¬
medical " aid is the cheapest

duction"isl expected to reach a volof nearly 35 billion pounds. Last
ea r * ^petrochemicalscomprised

billion

135

tries;

-Size of the Industry

nearly

ultra

this

Islamic countries, one
raising
more
children

ing water supplies, providing anti¬
biotics, combating epidemics, etc.;
resulted in a 40% decline of the

95%

-production. ^Domestic production of all chemicals

nltrs-

surge

McGratfar

H.* c

numbers

million investment in decontaminat¬

ume

against

'of

snrup

the introduction of modern methods

This year, total petrochemical pro¬

.the
in

from India. Sup¬
Egyptians also will

; is fading out.:
But the most

synthetic and
hew rubber is almost 60% synthetic.

Egypt could not directly begin to do the:
damage that Hitler inflicted upon the World. { '
i But, of course, Russia is not the main problem:; '!

rate

annual

In the

factor

—

with

million.

is reported

tion.

;

than

the

posedly,

having .the same potentialities y, VtCjhg; 50% of all chemical production in 1965.
;
for harm—assuming reasonable care and foresight J£
Petrochemicals from natural gas and petroleum serve
on the
as;: raw ^materials Tor -nearly
part of his most likely victims. Rather
3,000 chemicals.
New
products are coming in at a rate of
obviously, he can do nothing of very great con¬
400 per year.
This great industry
sequence unless he is able to attract very power¬
J" had its start in the 1920's. Chemistry
ful allies who are willing to > take -large risks "
is now our sixth manufacturing in¬
and incur'heavy costs in his behalf:
dustry. Since 1939, it has expanded
His own
its output
at constant, dollars-*country is small, weak and very vulnerable on'
more than three times.
To give you
several counts. Among those who might become
art
idea to what extent synthetics
allies, only Russia poses or could pose any great ;;
have taken over, re'sins and plastics
more

•double

his

are

■

states that the populations of
Algiers and Tunisia are rising at an annual rate of
2.5 to 3%, which means that they double in every gen¬

Sees

threat of force. .All the. Moslem world combined

'±-

A recent French report

petrochemical investment doubling
$8 billion in 1960, and petrochemical output exceed-

-to

.they may."

VAq-pcreaixi' as

respectively. Mr. McGrath notes such
industries^ shipping, farm equipment, rubber manu¬
facturing and gas pipeline firms have entered the petro¬
chemical field, and describes the activities of several
petroleum .companies that have successfully diversified
into this field/

is, however, of a vastly
different sort, and, of course, it is difficult to
of

;

Chicago economist appraises the changing direction and

The M. W. Kellogg Company

;

growing

for 1956 and 1960

The threat that he poses

conceive

By DR. MELCHIOR PALYI

petrochemicals,
nearly 25% of total chemical production and possesses
enormous growth opportunities—is delineated by M. W.
Kellogg Company staff member." Predicts dollar value
of all chemicals to reach $7.8 billion in 1956 and $10.5
in 1960, and petrochemicals to be $4.2 billion and $5.7

"Adolf Hitler of the Middle

Copy

At the Crossroads

henry g, mcgrath

ticular

being aroused to pointless passion by the extreme

sense

;

Fast

statements which from time to time find their way >
into the public prints: There are those who see v
In One

Price 40 Cents

Associate Manager, New Business Development Dept.

and

East."

N. Y., Thursday, September 20, 1956

--Today and Tomorrow

and

tortuous

difficult course from

in Colonel Nasser

\J411UO

Petrochemicals hdustiy

•

■

V. O*

page

cor¬

with the SEC

State, Municipal

and potential undertakings in our "Securities in Registration" Section, starting on page 36.

:;0r:>:;::;and'7--'v

U. S. Government,
-UNDERWRITERS

State and

Municipal

Securities

BROKERS
.

r..; * 'J :»

and

DEALERS

■"i

STATE

:,::

,r--:

•••

AND

Public

MUNICIPAL

COPIES OF OUR

Bonds and Notes

LATEST

Housing Agency

telephone:

HAnovcr 2-3700

INDUSTRIAL

BONDS

RAILROAD

CHEMICAL

PUBLIC

"POCKET GUIDE FOR

TODAY'S INVESTOR"

UTILITY

>::A'

FOREIGN

CORN EXCHANGE

ARE NOW AVAILABLE

SECURITIES

BOND DEPARTMENT
-

REQUEST

THE

BANK
bond

department

30 BROAD

ST.,N.Y.

THE FIRST NATIONAL CITY BANK

Burnham
MEMBERS NEW

and

Company

OF NEW YORK

Members

VORK AND AMERICAN STOCK EXCHANGES

15 BROAD STREET, NEW
CABLE: COBURNHAM

YORK 5, N. Y.

Ol 4-1400

•

Bond Dept.

TELETYPE MY 1-1262

Teletype: NY 1-708

T. LWatson &Co.
Members

Municipality of
Metropolitan Toronto

;

v
1

Commission Orders -Executed

New York Stock Exchange

On AH

Canadian Exchanges At Regular Rates

Chase Manhattan
bank

YORK 5

American

The

SECURITIES

-*'V

;

Stbck Exchange

■

4% Debentures

Due October

Payable In

United

IS,

1965

American

District Bonds

CANADIAN

Stock Exchange

•

25 BROAD
-

STREET

Analysis

States- dollars

Goodbody

•

PERTH AMBOY

Doxdoox Securities

Co.

liS^BROAOWAY
,

NEW YQ«K-

1 NORTH LA SALLE" ST.

Grporatioti

.•

CHICAGO

Exchange Place, New York 5, N. Y.
Teletype NY 1 -702-3
WHitehall 4-8161

upon

request to

Unlisted Trading

Dept.

lA to yield 4.10%

MEMBERS NEW YORK STOCK EXCHANGE

\ BRIDGEPORT
0 All AS ;■

Price 09

Teletype NY 1-2270

DIRECT WIRES TO MONTREAL AND TOROffTO

NEW YORK 4, N. Y.

FIRST

DEPARTMENT

Hospital
Supply Co.
COMMON

our
•

$100,000

Maintained

CANADIAN

1832

ESTABLISHED

York

34 offices from coast to coast

■s'v I To Dealers, Banks and Brokers

County and

New

120 BROADWAY, NEW

Net ActiVis Markets

State, Municipal,

Harris, Mpham &

IRA HAUPT &CO.
Members New

York Stock' Exchange

end other Principal Exchangee

121 Broadway,
WOrth 4-6000

it. Y. 6-

Teletype NY 1-2708

i Boston^ Telephone:

Enterprise

1620

The Commercial and Financial Chronicle...

(1178)

The

Brokers, Dealers only

For Banks,'

Security I Like Best

A continuous forum in which, each week, a different group

American

of experts
advisory field from all sections of the country

fn the investment and

participate and give their

Telephone &g

for favoring

reasons

(The articles contained in this forum

they to be regarded,

are

Senior

Sold — Quoted

"Bought

Prospectus
TABLE

Bestwall Gypsum

RELATED VALUES
REQUEST

New York Hanseaiic

Stock

American

WOrth 4-2300

Private

•

Co.

;

easy

The

Life

earned the

company

imagine

around from

are

with

mediocre company

history

dismal

Charles

than

Memoura

investment

tion,

into

vigor.

The

Camp Manufacturing,.'

$175 000

year

for

corpo-

"faxes8

Thus

Corpora¬

to
Aug.

This

eliminates

statement

capital gains on what stock they
*
..

hich

gains

canital

minded

Gypsum

has"

been

located

stated

Reeves Soundcraft

The

execution

fruitless search is the bonanza

and.

Tel. HAnuvart-ttSI

in*

of thp
the

t has
.

ac-

creasing

„

the

open-

cPalv

TawrPnPP

potential

company's

Montreal,

LAMB0RN & CO., Inc.

has

Toronto,

and
The

area.

proved

reserves

million tons. Additional

ing has been
further

large

the.

com-

over
core

successful

reserve

equal magnitude

invest

Liquid

can

Yamaichi
Established

Citv

thp

Brokers <fc

111

100

capital

centive and limiting its compensation to the barest minimum has

demonstrated
not found

tions.

ability sought but
by many large corpora¬

hPtu,nPn

of
one,

the New

York Stock Exchange.

sisting

approximately

common

small

700,000.
port

was

funded

The

latest

stock

DR.

FRANK

n/¥

ivT

tvt

"xt

Life

insurance

y
■

man

BOUGHT

Companies

debt

of. $1,-

earnings

re¬

that recently issued for

SOLD

L A. DARLING CO.
Unusual

excellent

New

Development in

Movable Partitions for
Schools

V.R

u-i

and

Offices,

Hospitals
i

•, i

And Adjust-A-Bilt Wall
Sections for Homes

shape

| M0RELAND & GO.
Members

this

respect is obvious when
the growth of insurance in force

Midwest Stock Exchange
Detroit Stock Exchange

is observed. This figure has
grown
by more than $200,000,000 since

1051 Penobscot Building

1950.

DETROIT 26, MICIL

Another important factor which

ment

acumen.'

substantially

RADER

that

a,.

better

vestments

Woodward

the

2-3855

Branch

Office—Bay City, Mich.

con¬

than

allocation

rate

in¬

that required for

reserves.

r»

The life insurance business is

growth business

Companies, Inc.

The

sale

once

life

it gets going.

insurance—and

I like Lije Companies, Incorwas .conceived and so the fortunes of the stockholder■
organized by Clint W. Murchison. _is no longer whether, but how f

Porated. It

John

Murchi-

son

true

his

son

father.

I think that is

The

§
I

in™me,

belong to

sons

for

Texas

the

call

'v
a matter of personal
trend of which is

the

common

Murchi-

what

mucK U is

important.

life

insurance

longer-term
the

is, to

stock

capital

gain

for
or

building of an estate. It
considerable extent, a tax

shelter

that

only

small

grow;

exposes

Athens

includes

Sid

and

with

Richardson, should

awns'

and

Dr.

Frank K. Rader

others.
to

the

Athens Crowd

that Robert R.

Young,
when

another

rescuing

Central.

Texan,
The

Athens,

'saving^

knowledge.

dividends to current high
Crowd,"which LIFE COMPANIES should

"The

715,000
a

—

quoted:

toil

can

J®"' the ?uc,cess ,of a" Ins.uranc?
fonipany. is largely a function of

Members New York Stock Exchange

Best-

and

Broadway,N.Y.6 COrtlandt 7-5680

stituent companies are earning a

Vice-President, Eppler, Guerin and
Turner, Inc., Dallas, Tex.

con¬

Investment Bankers

fmm

is certainly indicative of
manage¬

The stock is listed

the

simple

•

70 Branches

every conceivable

business

(4) The excellent management,
stimulated by capital gains in-

almost

structure

very

Ltd.

1897

—

Jrily £ *2?, 5?^?:
Concession in Colorado,

GoJSe

together with those held

drill¬

that

Tokyo

Roval

tively

was

wall

very
DIgby 4-2727

York

its

come

growth,

into its

rates.

stock:

the

own.

turned

Texas,

Life Companies is

FinallY> the stock at its recent
market was priced at only some

the

firm

for 42 Years

10 to 12 times earnings. This looks
attractive when other insurance

stocks

are

priced 50% higher

and more. I think I'll
...

National Quotation Bureau
Incorporated

string along

Established 1913

^mchisoris. The stock

traded in the Over-the-Counter
in

Quotation Services

very

New' York

ordinary town.

Over-the-Counter

•

be added to

Exports—Imports•—Futures

write

company

this huge tonnage.
The

—

information

current

Securities Co.,

security I like best because:
As of June 30, 1956, Lijfe Compa(1) It. offers an opportunity. to nies owns substantially all the

earnings

has stated that this deposit

pany

Refined

For

„

in-

appear to be Btirring due
improved Japanese economy.

now

•

...

Lawrence Seaway,.
Its President

tremendous

I entire Great Lakes

—

^rom^the
A

enterorises

uMtnurh

and practically

Broad-

ixom^ei iam xeea. oruda

through the supplying of gypsum

Raw

remaining at practically
stationary levels for three years

Henry Holt Publishing Company

SDin_0ff frCm Certain-teed

SS
which, coincident with the

ESTABLISHED 1929

this

TWIT Trailer

SUGAR

„

that

gypsum
than 400 miles from

success.

NEW YORK 5, N. Y.

mav

gypsum producers.

raw

a<ready market cannot be eco¬
nomically J. mined and. processed.
Companies for years have been
constantly endeavoring to locate
gypsum deposits with wiy Antic
ACjJuaiLs
Wiui
very little

Lanolin Plus

Company

in-

material of:fers an excellent hedge for those
i seeking protection against inflation. As a commodity, although
reasonably abundant, it is anything but abundant in localities
reasonably close to its market. It

Stores Pfd.

STBEET

thev

"da anatnat wmcn tney may
aeq^re through nominal options
granted, coincident with Bestwall's

reserves,

be the security I like best.

TWX LY 77

WALL

offices

STOCKS

Borne Office

capital gains purposes.
prices.
(3) The. tremendous Nova Scotia
A

■

Consolidated Retail

s used an expansion policy of
Cr6ate

that the executives must expect

in this country, nlaces the comappeal than any Security known pany in a position. to compete
to me and I sincerely believe it to favorably with the other Hmited

Birdsboro Steel

nf.^Y,r,rtni00

°'the vas'
Murchison Brothers'domain which

follow"

vestors. In myoDtoionUhas more

Trading Marheta

37 Wall St., N. Y.

branch

our

JAPANESE

r hio

onlv

Lynchburg, Va.

NY 1-1557

Mobile,Ala.,

Direct wires to

Call

requiring cash dividends from
their; investment. It has appeal

STRADER, TAYLOR & CO,, Inc.
r

uiivc

Life Insurance Co. of Va.

small
capital
structure, 000,000 of business for six months
Bestwell as a security that should should give its stock volatility de- to June 30; and that is the
kind of
be considered by people desiring sired in a
security bought for performance that moves stock

Basset! Furniture Industries

39.

The
flatly

1956.

time.

--Exchange
Exchange

that holds common stock of three old establarge reserves of
a
basic; and lished companies — Atlantic Life
necessary commodity—gypsum.
Lamar Life, and Midland National
(2)
The
company's
demon- Life—and plans to acquire more,
power,
together The constituent companies have
further stated that stock dividends strated earning
a
very
simple and rela- good agency systems—sold
would be considered from time to. with
$67'-

American Furniture

HAnover 2-0700

minded investors, instead of dis- *
V ousiness in uetwetn, from
T.ionel
mnrlnl
trainc
in -Tomoo
paraging incentive through .stock
,m?. ,e* trains to James
options, welcome it because the-l*®"dons fishing tackle,
benefits usually are transmitted
Life Companies is organized to
all the way down the line to the do a reinsurance
business, but it
most modest stockholder.
begins operations in control of
Summarizing, Bestwall is the $715,000,000 of insurance in force,

management
of
stated that the
company was to pay no cash divi¬
dends, but intended to reinvest its
earnings under a contemplated $32
million
expansion
program. .It
27,

Trading Interest in

Commonwealth Natural; Gas

Stock
-

Stock

New Orleans, La. - Birmingham, Ala.

insurance

spm 011

distributed

was

life

I have

OCCUXXiy

Products

which

Bestwall

York
--

American

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

" experienced

^eeuritv

Certain-teed stockholders

TEL. REctor 2-7815

money

made.

was

The
XXie

Certain-teed

Exchange

BROADWAY, NEW YORK 8

his

having

wall

Stock Exchange

ISO

Best,", the common stock Of BestGypsum Co., formerly a
wholly-owned subsidiary of the

ffiPONNEII&fi).
Stock

the

earning for mm from the moment
earning lor him trom me mom

his

chosen

Members
"

ofbIS wm"nit?aTSfless largests stagle holding

Jawetz

was

interested

Since 1917

'...

Steiner, Rouse & Co.
Members New
-

men.

not lack for executive

ratp?nrv of onp who is honing to
category ot one wno is noping to
increase his capital and is not too

SCRIP

American

Eppler,

Hatcher, P. K. Lutken, Sr., H.
Smith Hagan, C. A. Hunter, H. R.
Sluyter, and J. B. Knight. They

shape indicates that Bestwall will

gain, he would fall into

tal

New York

Vice-President,

after

are

before

Bought—Sold—-Quoted

Frank K.

ings.
With some $20,000,000 of
family interest in Life Companies,
it is easy to understand his confidence
in
such
men
as
Bob

^ration earning close to $9 million

h Specialists in

—

••Aexas- <^aSe D

strong company in sound financial

indi¬

man-

eeking

hand,

Bestwall's

record

headed by President ; Rawson
G.
Lizars, leaves
very little to be desired.
Its record
in
turning
Certain - teed

income. If, on
the o ther

vidual

'? RIGHTS

Companies, Inc.

Rader,

tremendous

agement team,

primarily

Principal Cities

Wires

those who

CHICAGO' •
SAN PRANCIBOO

.•

PHILADELPHIA

York 5

Teletype NY 1-40

BOSTON

Exchange

•„

yielded a high
return,' it
would
only
satisfy the re¬
quirements of

Established 1929

120 Broadway, Ncw

the

Gypsum Company —
Charles T. Jawetz, Senior Part¬
ner, Daniel Reeves & Co., Bev¬
erly Hills, Calif. (Page 2)

because

Associate .Member

wherein

Louisiana Securities

Bestwall

;

1956

months

Alabama &

growth in the company's annual
In selecting
a
security to
sales, estimated by some analyses
properly qualify as "the one I like
of
the
Murchisons
in the neighborhood of $65 mil¬ control
and
best," it naturally follows that the
lion. Should this level be attained, their experienced management
objective must fit the require¬
it follows that earnings would in¬ team. I know this team and am
ments of given
one
convinced of its capability.: Clint
crease
tremendously when
individuals.
recalls that approximately .$6.18 Murchison
has never been acFor example,
was earned in 1955 on sales of apcused of reckless delegation of
if it were one
proximately $34 million.
'
authority in regard to his holdthat was liked

request

nor

Beverly Hills, Calif.-

NET Prices

be,

Week's

Participants and

Ihelf Selections^

particular security,

intended

six

first

the

Partner, Daniel Reeves & Co.

RigfiU (w.i.)

are not

offer to sell the securities discussed,)

as an

CHARLES T. JAWETZ

Common &

This

Forum

Thursday, September 20,1956

Market.

46 Front Street
CHICAGO

New York4,N.Y.
BAN

FRANCISCO

Volume

Number 5570

184

The Commercial and Financial Chronicle

(1179)

INDEX

Treasury Securities Market
In the Short and Long Term

•

Treasury

Vice-President, Aubrey G. Lanston & Co., Inc.

market during the past year.

Mr. Piscr explains:

affects future

Market

Page

.—a.

Zelomek

„

AW COMPANY

the- Short-. and

r'V

Ooveiv
Long-Term

;

.Changed Economic Importance

(1) why

"LIVE MODERN"

May..—

Begin by clumping

Outstanding Consumer Debt

obsoletes-on us!

a,'

•'*

.....^

Where Do JVe Go -Front Here onthe Agricultural Front?
;;;y —Jesse Wi Tapp
'

^M*

Obsolete Securities
Dept.

What' Lies- Aheadl for
Attitude—John A.

money

Developing

lnsurahce

Depends

Upon

Congress* *v

WALL STREET, NEW YORK

Telephone:

WHitehall 4-6551

Child's Interest iiv Potentialities of His Brain —Roger W. Babson.
17
a

—

(5) difference bedebt management' compensatory policy in principle

tween

The Sale I'll Never Forget—Robert F.
Seebeck

•

market rather than capricious reasons* and

Ecuador: An Economy at the
Crossroads—A. Wilfred

conditions of short-term market,
including the. "float" and deficiency in free reserves; (4)
Federal Reserve interference; is
now*prompted> by disorderly

Securities

llGHTfnSTEIH

B. S.

Articles and News

—Leroy M.

Treasury issues are traded in dealer rather than in broker
market; (2) characteristics of short- and long-term market;
(3); factors governing member bank reserve balancer which,
in turn,

Foreign Policy at the Crossroads—Melchior
Pal.yi

By LEROY M. PISER*

Aubrey G. Lanston Vice-President analyzes the factors \
influencing the short- and long-term Treasury securities mar- I
ket, and reviews the interaction of important factors in the

The

Rising

—Paul

Threat

to, Britain

Political

Trade

Unionism

HAILE MINES

Einzig

vs.

practice.

The .Treasury securities market,

in my opinion, is influenced prin¬
cipally by three factors. These

first, the condition of busi¬

are,

entire block into

find

buyer

MONTROSE
About-the Chemical Industry

buyer for the securities.
not always
immediately

find

;

position until

our

for

the

Petrochemicals Industry: Today and Tomorrow
■-—Henry G. McGrath.

particular

ness; second
the credit pol¬

that

icy followed
by the Federal

any one time. If we do not* want
to take the entire block into posi¬

Reserve

tion,

we may

tem; and third,

into

position

the debt-man¬

mainder

agement pol¬

find

issue

Sys¬

and

the

particular amount

is offered

the

Chemicals Undaunted—Ira'U.

and

take
until

the

can

icy followed
by the Treas¬
ury.
In addi¬
tion, the mark

may

ties that

bid

are

temporarily
by psychologi¬

that

cal

policies

factors

The

have with

better

offered

them.

for

and

Dealers

kets

The first point that I want to
make is that rates on Treasury
securities
curities.

the

constitute
all

for

rates

basic!

interest-bearing

Yields

se¬

municipal and

t e securities generally
'move
up
and down a with the
■yields on Treasury securities. Of
c o r

and

Plastics and Soft Drinks Find Common Use of Citric Acid

able

are

p o r a

close
to

execute

each

between

check
with

other

A. C. Farmer Criticizes Policies

clear

Between

transactions

other

do not have

they

exempt from the order through some other dealer.
Federal income tax, and corpoAll dealer transactions are net,
rates yield more because of their
that is, without commission. This
lower credit rating.
Also, these
means
that if our market on a
;
differences will vary as the supply
of the different types of securities particular issue is, say 99 6/32 bid,
99 8/32 offered, and if we can ac¬
changes and as
credit ' ratings
'fluctuate over the business cycle. tually buy and sell at those prices,
our

The Treasury market is a

dealer

market, as distinguished from a
.broker market, such as the Stock
Exchange.
ers

act

This

that deal¬

means

profit

gross

2/32.

course,
even

British

actually
cause

exist

the

As We See It

apt

practice

market

lies

the

1/32

•An

address

Annual

Since

...

Rising

Threat

Britain

11
46

NSTA

Notes

....

—_

News About Banks and Bankers—

Request

inc.:

40 Exchange PI., N.Y.

Teletype NY 1-1825 & 1-4844

•
'

Direct Wires

I—

—45

———

Security Salesman's Corner....—
.

Ferry

Federal Uranium

—..

and You—By Wallace Streete..

Best

Security I Like

TMT Trailer

—....—

Prospective Security Offerings—.....

—....——

Securities Now in Registration

The

Lithium Corp.

————.——I.————— 47

Report.

Railroad Securities

The Market

.....—-—

—

Governments.....

Our Reporter 011

•/

Observations—A, Wilfred May

General Transistor*

The State of Trade and Industry

dealer

page

upon

Mackie,

HA 2-0270

Public Utility Securities..

Report

Singer, Bean

political Trade

Baruch Oil

Washington and You
on

•.

Philadelphia • Chicago • Los Angelas

Forum

Continued

•

Our Reporter's

at some later date.

...

From Washington Ahead of the News—Carlisle Bargeron

the transactions,

Indications of Current Business Activity

necessary

Mr. Piser before the
on
Finance,
New
York University, Aug. 30, 1956.

6th

Annual

the

1/64.

-•

.......

.Unionism"

Dealer positions are financed in
for a two principal ways. One is by
great many of the transactions to borrowing from commercial banks,
be negotiated.
For example, if a but the more usual is by selling
bank wants to sell, say, $10 mil¬ securities
to
commercial banks,
lion of a particular, issue of Treas¬ corporations, and the Federal Re¬
serve under ah agreement to rer
ury securities, we may take the
purchase them at a specified price

average size of
This makes it

Investment Recommendations..^

Einzig:: "The

Dealer Financing

large

Cover

Dealer-Broker

have.

(Editorial))

Coming Events in the Investment Field

they handle, that is, purchases These are pretty small spreads,
sales change their portfolios but the income is made by the
of securities. The principal reason large volume of transactions that
that Treasury securities are traded
in a dealer market rather than a

;■

47 /

—

buy and sell

;

Business Man's Bookshelf

be¬

between

(Letter to Editor) JiL

•/.

Bank and Insurance Stocks

and

broker

the deal is, of
matter of fact,

difference

PLUS"

Regular Features

that

Sterling's Worth"

•

that small difference doesn't

principals rather than prices at which

[agents in most of the transactions

Being Suspended

Booming Business and Tightening Credit

are

LANOLIN

Frederick G. Shull Discusses "How to Assure World Trade of

municipals generally yield selling (prder, ip 4hat same issue,
less than Treasury securities, be- we
may be able to locate a selling
cause

....

course,
-

...

Harold X. Schreder Views Stock Market

have, a buying order

issue and

one

Marcus Nadler Sees American People's Capitalism Answering
Totalitarianism

keep
respect

Stable Price Index No Assurance Money is Sound, Says
Walter E. Spahr

each

Teletype NY 1-4643

Prompting Inflationary Trend

(Letter to Editor)

with

Broadway, New York 4

DIgby 4-4970

mar¬

themselves.

words, if

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

buying and

quotations

them

changes

buying and selling price's
they quote, and it also en¬

ables

Chemist Cites Method of Overcoming "Ileat Barrier"

the

that

FILMS

Chemical Defense Laboratories Urged for Entire Country

customers, the

This enables them
to

OFFICIAL

Sheer Population Pressure Decried by Soil Scientist*-..— 22

contacts

constantly

and

other.

Making Fuel Products from Asphalt Revealed by Chemists 10

know their investment

by misinterLeroy M. Piser
pretations
of
the fundamental
factors, but eventually it always able we are to
seems to get back in the groove.
selling orders.

OIL

that they
may want to make in their port¬
folios and consequently the better

Treasury Securities Market

are

find securities when there is

influenced

KEN1LINDS

Prospects for Titanium's Use in Chemical and Other
Industries-—Francis C. Fraryi.——

continually in touch
with their customers, so that they;
are in a position to place securi¬

Dealers

BROOK OIL

...—

re¬

Cover

Cobleigh

The Urgent Role of Chemists- in
Developing Atomic
Energy—Willard F. Libby——

take only part of it
order

market

buyer.

CHEMICAL
c

18
Published Twice Weekly

Drapers'

Gardens,

London,

Scripto, Inc.*

Eng¬

land. c/o Edwards & Smith.

For many years we

have specialized in

ary

Park

DANA

tv/:

Spencer Trask & Co.;
Members

New York

Nashville

Boston
•

Exchange

TELETYPE N. Y.

•

Chicago

Schenectady

•

Glens Falls

REctor

COMPANY, Publishers

2-9570

9576

the

post

Subscription

WILLIAM

DANA

SEIBERT,

President

1956

state

Thursday

and

city

(general

news,

Other

Chicago

Offices:

111.

135

Canada,

Countries,

Bank

Salle

St.,

STate 2-0613);

and

Note—On
rate

per

$63.00
per

year;

per

Record

exchange,

the

made

New

WHitehall

—

Monthly,

fluctuations

remittances

York

funds.

BROADWAY, NEW YORK 6

Teletype NY

for

Direct

PHILADELPHIA

3-3960

1-4040 & 4041
Wires to

DENVER

for¬

eign subscriptions and advertisements must
be

INCORPORATED

year.

(Foreign postage extra.)

account

W!! V. FRANKEL & CO.

S.
of

Publications

Quotation

$40.00 per year.

the

South

$67.00

Other

news

etc.).

(Telephone

Dominion
Other

Worcester

Rates

$60.00

request

New

in
United
States,
U,
Territories
and
Members
Union,

Febru¬

Subscriptions
Possessions,

and ad¬
vertising issue) and every Monday (com¬
plete statistical issue —market quotation
records, corporation news, bank clearings,
Every

matter

office

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

Pan-American
>

Thursday, Sept, 20,

1-5

second-class

1942,

7, N. Y.

New York

SEIBERT, Editor & Publisher

HERBERT D.

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

Albany

Stock

Place,

25,

*Prospectus

Company

Reentered

Reg. U. S. Patent Office

BROAD

CHRONICLE

FINANCIAL

PREFERRED STOCKS

WILLIAM B.

and

COMMERCIAL

The

SALT LAKE CITY

The Commercial and Financial Chronicle

'(1160)

pletion,

Chemicals Undaunted
/

you
on

calming in-

the troubled waters of

recent share

^markets.

Market history

Not

of the past five

shown

that

the

has

only have in-

tained

profitability resulting from

ternational

years

vwonder

t r * 1 epin
equities

bogged
but

is-

S U e s, q u

drug,

sus-

i t; e

research

important

one

for

50%

over

new

production
future

methods,

market

and

this
lightweight substance, are expected, in
due course, to bring to this divi¬
sion, the high profitability which,
h a s
consistently
characterized
Bow operations in other divisions.
Union
which

Carbide

and

Ira

;

?o?#rL h111
195b
nigns

Cobleigh

.1,

including

a look at Chas.
rewarding because
0f jts new antibiotic drug, Sigmamycin. This is a multi-spectrum
drUgt a combination of a new

the

Which brings us to today s agenda,

namely

the

chemical
citation

equities,
priced.
The

With

such

the

scanning

scene

not

seem

position

industry

has

changed.

Here

section

of
of

.-hare

year;^ that spends
tion of
its

and

total

nature.

this

of the most

this

industry

last

some

new

the

for

On
50

this

year

($2.94

basis,

Pfizer

(plus

paying $1.40

extra) - is

being
billing.

current

half, and
figure :i to

per

$3.60

year).

COmmon

fibers,
plastics, and medicinal drugs. For
example, Nature used to supply
all of our rubber; now 55%, of it
is

second

the

around

dramatic creations of

fabulous

propel

last

category have materialized

of earnings
patented
drug,
this should mate-

rialize

creating

ments for many raw materials of-

with-

Earnings from

developing synthetic replace-

fered

per

Pfizer for the

$L77 (against $1.58

reflection

any

from

good po?-

energy

Nineteen fifty-six

were

for the simiiar 1955 period)

plant this

new

types of pneumo-

earnings

first half

that dpvotes over $300 million a
year to research; that will invest

$1.4 billion in

certain

j nfeCti0ris.

our

economy which continues to grow
thrice as rapidly as all
industry;

ever

the nia, blood poisoning and intestinal
un-

favorable

given

—

tween

available at

117.

the

one

authentic chemical blue chips and
is' found inc the portfolios of al¬

?/ktbe.,S,UC0C®f
(with total esti-

While it has been characteristic^
of

and
bit

provide cash
the

also

dividends

been

sidp

true

that

and

iLestoL

institutional.

has

our

been

Others among

industrial

growth
rate
but because of
the notable capacity of'industry
leaders to develop
highly profitover

able

many

new

net

and products;

processes

sales.

view

the

Pharmacal (at 55), in an earninSs uptrend (should show $3.75

vir-

tually annual increases in the price
of labor, many investment selecalmost

tors

instinctively

industries

where

ceed

of gross.

30%

labor

ex-

purview.

specific

companies,

we'd

like to start with

two

about

chemicals,

Four

wonder

almost,

the

five

drug
any

ket ''hit

could,

parade."

G. D. Searle

ago

the

its

The major diversified chemicals

new

put

mar-

been

going

along majestically earnings-wise, even though
such

not

good

stockholder

been translated

market gains.

Take

news

into

has

current

Dow.

In its

fiscal year (ending May 31) of
:1956, this splendid company in-

number

one
producer
of
specializing
in
vinyls,and polyethylenes. In¬
vesting in UK common has,
through the years, been a most
rewarding pastime.
;
i

Another great company which
annually adds excellence to ex¬
cellence, is American Cyanamid.
A $50 million increase in sales this

is in prospect, carrying the
total, for the first time/ above the
$500 million mark. $35 million of
year

this

expanded volume .will

from

come

Formica Company, acquired

1955, but delivering its first
year's
earnings
in
1956;
About 25% of earnings come from
pharmaceuticals via the Lederle

full

There

was

100% stock dividend in 1952 and
cash

rate

ACY

$3.Q(L

Against that, per share
earnings
for
the,* year should
reach $4.50, a new
high. If more

By any standards
of investment analysis, the com-,
mon is one
you should be proud
to

name.

own.

Among other chemicals selected

creased its profit by 60%

a/at $£§o

but

you

add

moye/F the bookkeeping-charges

that

de-

Notwithstanding a decline in over-all industrial production in
the period ended on Wednesday of last
week, output held/mod¬
erately above that of the comparable week a year ago.
Steel., production s i*egistered
f a
slight rise during the vweek
Which tended to offset decreases'-in .the output of electric
power,
automobiles and coal/ r,
:
v
'
'
-

Industrial

pressed level and it

was

eral Reserve

noted.

18941

somewhat

random,

shares. Nooco. which
in

these

Abbott

columns

discussed

year

back, when it

was selling in the
20's, has performed quite well and

Spencer Chemi¬

cal,

third

largest

polyethylene, had
(fiscal

year

$45

1955

from

rose

year.

high, above

a new

million, and earnings

common

r>rortt">er

splendid

ended June 30, 1956).

Sales carried to

$4.73.

$4.04

the

on
a

the

basis

With

quite

few

soggy

spots

declining earnings appearing
economic horizon, it is
nice, once again, to contemplate
the
chemicals, researching their

and
on

the

progress

Investors

baum,
1, GEORGIA

LONG DISTANCE 421

marked

return to the'June rate and

last year by two

topped the like month/of

points.,

Taking seasonal factors into

' '

account, the

Industrial production

the July

far this year, with the exception of

has been between 141% and 143%, excluding

range

decline.

Initial claims for unemployment insurance
dropped to the
lowest point so far this year, being 6% under those of the similar
week in 1955.
'
;
"1
*'
' 1" 1
Initial claims for unemployment
compensation rose 30,600 to

205,500 during the week ended Sept. 8, as compared with 162,500
a yefcr ago, the Bureau of
Employment Security reported.
The Bureau noted the rise was caused
mainly by temporary
layoffs in the apparel industry, most of them in New York City.
It stated layoffs in the auto
industry rose, with State reports
showing • 31;000 : workers laid off—primarily because ' of model
changeovers—rand 20,000 workers recalled during the week ended
"Sept. 8, bringing to 272,000 the number of workers laid off since
the first of the year- and -not recalled in the seven
major auto
producing States.
i-i
The Bureau pointed out,
however, that the figure of 272,00Q is
claims

not

a measure of
unemployment in the auto industry as the figure
represents accumulative weekly estimates on a part of the indus*
try and "does not take into account that many of the workers laid

,oi£ since Jan. 1 have found other jobs or left the labor market."

Insured

unemployment, the Agency reported, dropped to a 10
months low in the week ended Sept.
1, but was up from the
similar week in 1955. A drop of 51,800 to
994,200 was recorded—
the lowest since November of 1955, it added. Insured
unemploy¬
ment for tne similar week of 1955 totaled

931,400;sU

Largest declines in insured unemployment, the Bureau said,
reported by Michigan, with 10,600; Pennsylvania, 8,100 and
Tennessee, 4,000. Recalls to work in a number of industries and
the rescheduling of reporting because of a short work-week due
to the! Labor Day holiday also contributed to the
reduction#, the
were

Bureau of Labor Statistics declared.

;

points to

with
to

and

Corp.

offices

engage

Officers

Harry

Opstbaum

A.
and

was

same

for December.

•

Meanwhile, continues this trade publication, hot-rolled sheet
are finding that
tonnages available to them are growing
shorter and some producers are passing the word that there won't

consumers

hot,-rolled sheet available after the fourth
quarter.

anv

The tight situation in plate, structural
into the amount of steel available for other

and

has

in
are

and

been

2010

Mott

securities,

Max

Opst-

Treasurer,

I Wertlieb,
Secretary.

ViceMr.

•

pipe is

cutting
products, creating a
chain reaction that automatically makes other
products harder to
obtain, declares this trade authority.
>
*
.
:
;.
Holes are beginning to appear in once-comfortable inventories.
.

Strike losses combined with continued strong demand have
thrown
steel inventories out of balance and consumer^ are

having

time filling the gaps.

Most mills

products will

Corp.

formerly with First

Investors Corp.

of the tightest fourth quarter markets in years, states

Age," national metalworking weekly, this week.
Plate and structural consumers, in dire straits for months, are
pressuring Washington for government controls on distribution of
these products, with little chance of there
being imposed. But
even if they were, available
supply would not be increased, this
trade weekly adds.
Sheet consumers, too, are running ipto more trouble.
With
new models, coming out, the auto makers have taken their, full
quota, or close to it, for November. What was left was snapped
up by other consumers and the chances are the story will he the

are

run

...

admitting privately that
six weeks

tough

many

carryovers

into

efforts of the producers to bring deliveries
promises, concludes "The Iron Age."

President

President.

one

best

FAR ROCK AWAY, N. Y.—Per¬

business;

Personal Investors

'Avenue

ATLANTA

from July^S de¬
higher this month, the Fed¬
> *
:

It observed that industrial activity climbed to 141% of the
.1947-49 average last month.
In July the month-long steel strike
had plummeted industrial
output to 128%. August production

year,

into

despite

line

with

Business outlays for new plant and equipment in the
current

•.formed

records

new

profitability.

sonal

WALNUT 0316

even

"The Iron

CORPORATE BONDS

RHODES-HAVERTY BLDG.

headed

recovered

paying $1.80, the yield is substan¬
tially above that of most chemical

and

LOCAL STOCKS

August

Steel producers will be fighting a rear
guard action with their
customers, for the balance of the year and beyond. Everything

wav

STATE AND MUNICIPAL BONDS

Board

-v

ESTABLISH EI)

pnxiuction

Laboratories is well regarded for
its solid management and
long con¬
tinuous dividend record.
At 40,

'SSSS

out. of
gave

$3.00;

$2.40 dividend, Spencer Chemiover the rcal, at 53, certainly does not;
ap¬
pear over-priced.
'-f't

Dramamine and

Merck

1955

sensation

Co.; penicillin

Pfizer;

at once,

company on

Banthine made

bulge

drug

years

word

have

Veering

nitrofuran drug; and Eli moved
ahead especially in poly*
Lilley (at 60) moving forward on urethane. At 40, with an
indi^
the basis of vitamins, barbituates cated
dividend of $1.85, the yield
an^ Salk vaccine production.^-; * is i ust shv of
5%.

That formula

leaves chemicals well within their

share this year)-based

new.

ignore

costs

the pharamaceu-

ticals, about which you hear favorable comment would include:
Merck (selling at 32) reported to
have a new TB drug; Norwich

years,

and to the low ratio of labor costs
to

inspection.

true not only because of the above
average

included, the

distribution

middle

marketed. At around 64, with
1956 Per share net expected at
around $4'25' Smith' Kline and
Fre"ch
?lght merit your
further

ha ve

individual

This

■

the

cash

now

trsncjuilizins drug shortly

Ihev

been bought and retained bv

shrewdest

Auto Production
y 'r"
Business Failures 30

the sharp July drop, has bobbed
up and down between 141% and
144% of 1947-49 on the unadjusted scale. With seasonal factors

this year on which basis the

should

$4.83. They may reach $5.25

were

heavily, to
high'price/earnings ratios,

Industry

certainly be duplicated and might
be increased, Operating in a broad
range of chemicals, UK ranks as

earnings last year

L
f
p \
.1
rfrfnlaw investors have not become ACY
pytomel,' a metabolic regulato stockholders, it's probably because
v
'^troduced this Spring, and (3) be- they have a time pronouncing its

major CilCIIUCcli Sjlldies to Uis»r
chemical shares IU disJUdJUI

count the future rather

sell at

the $1% billion

cross

the current

bfUJ:'ngThorazine*
of lts

■

Board stated the
increase over July amounted to five
percentage points, to 141%
in August from 136% in July. In
August of last year seasonally
adjusted industrial output stood at 140%.

synthetic

expected to

Laboratories division.

Trade

Price Index

and

ranged this; year be¬
103Va and 133%, is now '

wallop it delivers, it plastics,
is believed to be especially effec¬ styrenes,

over¬

remains

because of

and

ones,

the multiple

tive

essential

chemical

older

some

laboratory-type

may

Co.

antibiotic, called metromycin with

view

for example, inves-

now,

l°r® may flnd

pfizer

cnem/i c ais«

Right

Retail

Commodity Price Index
Food

b o n,

a r

mark. Per sbare

State of Trade

wide

for;

off

10%

Electric Output

1956

most
every
major institutionalinvestor,
UK sales for 1956 are*

Stec3
r

0Carloadings

product 1 frequently • can <; create
Others, and the end result is, over
Arab'arro- time, higher earnings and share
gance,
are prices.
unrelated

» •

The '■

sales, and the whole
operation showed a loss. Revised

new

patented pharmaceutical, can be
over estimated; but it is also noteworthy that those companies able

down,

many

new

...

00-y

leadership in magnesium. Actu¬
ally this metal accounted for but

rapidly forward with B„ B12 and
cortizone; Parke, Davis developed
Suez, and the Gamal canal cabal Chloromycetin; and Cutter Labohas
also
created
some
choppy ratories produced, with varying
waters in our success,; the Salk. Vaccine.,
has exerted

"outstanding

sales;
plastics about 32%.
The
Dow
name
is always associated
with

Oil

amort¬

last.'Inorganic chemicals

account

topical account of certain companies deriving sustained
and increasing profitability from search and research in
; diverse chemicals, their production and
distribution.

fluence

and

reach casn earnings
each of the 23,663,6 /4

common

May 31

Enterprise Economist

;>f|l

By IRA U'.»COBLEIGK : * ft

*.♦

depreciation

ization,
of $5.64

Thursday, September 20,1956

...

quarter have been

slowed by strike-caused delays in steel de¬
but businessmen are scheduling sharp boosts during
the fourth quarter in spending of this
kind, which-has been one
of the bulwarks of the economy this year.
j

liveries,

Third

quarter capital expenditures will set

a
yearly pace of
a Government survey of business plans indicates.
$400,000,000 under the rate projected last
spring.
fourth quarter, however, business
spending is expected ta

$36,300,000,000,
This

would

In the

stepped

up,

being

scheduled

the

rate

$38,000,000,000

annually,* barring further delays in deliveries 'J steel goods.
-

•••'

-i-;-

~- - —

:*Co00ned

This

on page

Volume

184

Number 5570

The Commercial and Financial Chronicle

KH3I)

the

Ecuador—Ati

Economy at the

economy leaving all the
To private -investment.

anuiiM^

li.iuii

II!

The, Government should act only

it;

free

initiative

•%

anf oriehtator—the only way to

The Sale 111 Never Forget

♦

create and
;

yr:

By A. WILFRED MAY

maintain

confidence."

Admitting the difficulty of bal-

anting the budget after, two years
deficits, and of drastic cuttingdown of' expenses midst growing
grOup-phes^uri5iing;theneWPresi^
dent's Commitment to expanded

May details recently occurring facets of deterioration
facing the newly-inaugurated regime. Following interview with
the Minister of Economy, confirms Ponce governments earn-

Smith, Barhey & Co^,: New .York City

free

to
U|ir iu

enterprise and
euierprwe r auu

IIct:

various obstructive

le
analyzing the

stability; and after
siaumiy ,anuauer *

elements,

•

difficult, but

i--__

not

akAAl

'/£ v;.*

(Mr.

May

America,

elsewhere-

true

of the

wrHu

uarely

+v.«

.uriwortied by *he recent declines
m

„

Wttutoe-

-This- is; nationalization

econom-

11v

Editions
:

'Nationalization Curtailed 'I

Tbus farfthe lid Jon

C n^u-S S~":
ids.
a

reserves,

because

has

recent

•

;finished

Extensive

interventionist

powers

our

been, in

fairly. regarding the possibility of soiv- r;

cele¬

®r

doctors

was

which

T had

just
had
department only a.
working oil, a list of

sales

over-the-

cold call.

training

so:

my
..

the

month

Robert F: Seebeck

of the Tnter-

I had to

sale

counter stock

"jLAiiiCuic/uwl, riot' impossible,"

—-

were

tell

the

outright is *jth£ Minister's, net. conclusion

been

wife
;'
/.
Y
-V;?."
jn Spite of the excitement this, sale
caused, however, it's possible that. .it
doesn't occupy the same favored spot in
my mind as ope of my first sales. It was

t,,
'
.

.v |

P **

±u—

the good news.

the

heln

r.—

sit still for another minute,

substantial rises in the export !
crj)
A
• lmproved; including •
-Epfeed-up, tax collections are ex- ;

well maintained; being limited to, ing the problems.
A special mission

w#>n

-.4+

brate the great event arid

the case of banks, and averagmaterially
to
a- country ing 24% by private
lenders,;

^ ;restrictions'ori raw materials; "we yf f

printing

kg* <*•
^rke^ interest rates are
very high, ranging from 10 to 14%

President,

new

;

S. y.

;

capital

Ecuador today, at the

inauguration of

'.;!*« A .V

uses

rJM.rro«i

•.

Latin

obvious

press.)

-•

marked degree even

To
than

Ecuador-Editor.)

recently

was

• con
templated cutting-down of import

con-

___r

and:private capital investment

institutional t
trades^ that
The first time-I
r

f
received, an order for. a million dollars worth of bonds,
I left- the office immediately. I couldn't
c
Jm-

•

impossibfe^VJteports^X ;^hackw^rdheSs^;;Sehv-Vliitriago Hs
n_>i_Y
'j:.
* confident
that alone with

«l.'A_

inter-governmental loans

I .expect that most people engaged^ in.
work get their greatest '.thrills from

sales

: involve
1 lliVU.AVC very large axuuuu».„ui money.
AaA5® amounta.of

public" works,-

conclusion'";
'it will he

situation,- the urge for expanded
and ; agricultural

•

With the

agrees

- *

!°c!?L6ecuf^' \.dlf*lcult resc™

dedication

est

v^:

By ROBERT F, SEEBECK

; yof

Mr.

•

and

course:,

had taken out of the

the currehcy.

favor- are actually exercised by a central% ;> capital From Abroad
viable until 4he oon-political-mon^tary board. The j-igcyador has received twv
:vq u

A'iiiriJ

price structure is fairly burstingr

^k^n

V '

;

organization, and

P°°^ ments,

Spliuii

and

exports set in.

prohibited

goods,

wages,

and

onlffnS ^Ii l'innqUOrS'a
costing over $100, arpong
+u

strong

per

say

relations

management

jurisdiction

gov-

labor-

and

Labor.

The

social

-Sa ^nenif

2^ a i
Jf n"

-From

$30*

security

the

million
the

during

ra, 0s system is administered by the Na- million

for

via

Repayment
tie

lpng tional Welfare Institute,

;a;semi^

autonomous agency of the govm the eminent.
as mcreas ' ' The ideology of the incoming
reserves Gamilo Ponce Enriquez; stapds
^

reserves now value of
stand under
the annual

ports,

1m-

and

supply.

40%

The

sucre

thp

has

"has"'been^"recdved
past

the
rate

exchange
operate

system,

Crucial

Budget

a
'

D0911A V ^VlliriTAC PaIiAIAC

MvCltUJI vHUvlZvS> rOllvlcS

$7Vi

years.

Sharon, Pa., business consultant pin points inflation's coarse
upon

Federal

"strange

- housing,
guarantee. program, and refers to
situation" t resulting from Federal contradictory

policies.

In his inaugural address delivered for the improvement of two air- Editor, Commercial and Financial
Chronicle:
with all pomp and circumstance ports. I
in

Quito, Sept. l last, the incoming
' ,*VT

mnnpv

monopolies.

state

Situation

The budgetary situation too has

far in

'as

production, effecting constructive
tax
reform, and liquidating the

But

whether

these good intentions can actually satisfaction; rather than of

com-

investment; iri:

Ecuador has been quite negligible

amounting to about $25

^us
million.

this

three-quarters-of
British, devoted to

About

total

petroleum, electric power, shipping
and ajr transport, textile
manufacturing, ' cement,
sulphur
mining,
caca0<

fisheries,

Coca-Cola

being

these

deficits—there

capital market—the Gov¬

who

double

besides

finds

President

time

has

resorted

borrow¬

ing from the Central Bank. Addi-

tionally, the Finance Minister pays
contractors
in" bonds;
with
the

believe

the

pdiicy

tional

Development

of nothing down and 30 years to
The Government OKs the
m0rteaee

and

house

the

•

...

thereby drawing on

lahnr

fv,

FARMER

Business and Economic Consultant,

built

of the op¬

program

position party will be far worse.

pay.-

_nH'
a

213

Dollar

Building

Title

■

Sharon, Pa.

material sufficiently to cause a

Sept. 17, 1956.

national shortage.

;

;
■

■-

■■■'

■

posts

on "

income

derived

■
-

Complete
INVESTMENT SERVICE
underwriters
brokers

dealers';-;
distributors
PRIVATE LEASED WIRE

SYSTEM

Dean Witter

tions, her quite favorable tax im-

the, Na-

Bank.

the

only

Republican

shall. vote

;

from
-

The

Cabinet member
from the former Velasquez regime,
he is recognized as
the
country's "economic boss."
"Al-

only

basis

flation by tight money.

financirig ^
because

making

gesture towards fighting price in¬

the greatest price

building of houses

samd time

the

price

OK'ing, mortgages

,b.y

have been bottling there for some
time.
:
'
' $

capital, tariff protection; against
foreign competition; nevertheless
only a; negligible amount of capital!
has come in. The deterrents seemimpression held in some quarters
ingly have been fear of political
that there is difficulty in meeting though we had an unsettled econ- upheaval, absence of great mineral
his current obligations. (With the omy, the new government is dedi- or oil resources as in other counmonetary authorities pointing with cated to working to the -utmost tries, and the shortage of techpride.to their abstinence from the toward a free economy. I am for nically skilled labor- —

ernment

and

inflationary factor in today's econ-

program may

and

■

bananas,
and
and Pepsi-Cola

well be effectively
Ecuador
has
maintained
the
obstructed in the Chamber of policy of welcoming foreign capiSwelling the "capital budget" DePuties and/or Senate.
..
tai
This was re-emphasized by
have been
a
vast
and
growing Authoritative Profession of Faith President Ponce in his inaugural
number of government-subsidized
At any rate, belief in sound and
address when he expounded on
buildings, highways, bridges, and constructive ends and confidence his ardent desire for both capital
roads extending from one end of that they can be achieved is sin- and immigrants from abroad. But
the country to the other; and in
cerely embraced by the Adminis- despite this and Ecuador having
the
face of
unceasing pressure tration. This was spelled out for joined the Investment Guaranty
from the citizenry in the prov¬
the writer in an interview with Program
of the U. S. Foreign
inces for futherance of such proj¬ FrederiCo
lntriago,
Minister
of Operations Administration, her exects, no termination of them is Economy,
supervising
industry, tension of specific benefits in the
foreseeable.
commerce, agriculture and mines;
form of tax benefits or exemp-

enterprises, actually incurring
additional unshown charge.

;

fight this situation

strange situation to see a

inflation

May 1 cal1 attention to what I

It is the

rojje and Asia. *
- private foreign

To finance

contributory causes

rise in the cost of money.

Government feed the fires of

,n pr.ces and their

^956 ?d

deficit of 137 million sucres has forinancei3open to serious doubt;
beenr"suffered,- against receipts of Apart from the.,usual political
870 million;
with a 200 million pressures, the Ponce regime repredeficiency expqeted for the full sents a distinct minority' party,
year. The government keeps three "having
received a mere 29% of
budgets,, with the respective fig- the popular vote—sufficient for
ures somewhat obscure:
segregated victory
because the - remaining
for (1) operations, (2) State en- 71% - was
splintered
among
a
terprises, and (3) capital expenses, dozen "liberal''parties. While the
Each of these divisions is believed presumed continuation of the conto run at a deficit; with the rail- stitutional
electoral process will
roads which, surprisingly, are not retain
Ponce in power for four
included
with
the., other
State years, meanwhile his conservative

futile for the Federal Re¬

Bank
a

J It is

you discuss the present inflation-

part
of officialdom
well as tlm public about the extent of American
aid is .one of understanding and

with

°£

nTttahil?zati'o'n "7nciudine"" in'- $2 Amillio" annually.

America thehellinTon °the

narrow

serve

In your editorial in tne Aug. 30
m
eauoriai in the Aug. au

Our Point Four program is func-

Under

io:r:; j,.'r M

LETTER TO THE EDITOR:

devoted to a highway
pj.oject; started with $2%» milllon
eight years ago, and constantly
raised owing to'tinexptected Costs,
'with termination1 in 1954. The
other Export-Import loans have
been devoted to reconstruction

multiple

w.thm

'^'v■ v

was

slightly in recent months.

town to my

across

Export-Import Bank

MIn °tiierJ wor.ds'
30%

taxi clear,

elated with;

was so

next call!-..

i#1,r decline, hav- ,qUite far to the conservative right,
Linmni nf
b|" particularly so in political areas, after the earthquake of 1949, for
SStuSr 01 iyaa» irom 51^ to 251 and moderately so economically, sewagq systems, and just recently,
•

•

first sale that I took

assignment

electrical development in the City
of Quito.
>

exercised

eless the deficit

production.

this small transaction, but I

and completed

course,

much involved iri the Way

Consummated in 1956, was in the
amount of $5 million at 5%, for

over

a._dfC?r<;f_of ,Marcb 15 last> by the Department of Labor of
^trictions have been ex- the Ministry „of . Social Welfare
temporarily
to automo-

tended

ernment

consisting of extension

list

profit

agricul^ tation toward the end of increasprovided

immediately, of

the trade.-.There wasn't

for lowering the cost of transpor-

poverty, ing

The law gives the-central

means,

the

I called the office

than her neighbors', is negligible. 0f certain taxes. The second loan,

Imports haveand direct
been curtailed by
indirect

both

latter

particularly

Ecuador's middle-cla£s, even more

the

labor seg-

many

reversal tural,. live in ^extreme,

a
of .the previously expanding trend
°t

frbm;the International Bank

J, when a severe, at-the-seams of controls.
was consummated in Fcbru^.arop- occurred,^-. .While 'the workers-are making ary, 1954 in the amount of $8V2
:
^
pnce cw some progress, they enjoy ho mass million for highway development;
®e' an

M.*

i t

New York Stock

hold-over

Co.

Exehonge

los Anqeles Stock Exchonge •

Members-

•

San FfonciseoStock

Midwest Stock Exchange *

Exchonge

Amerkon Stock Exchange

Honolulu Stock Exchange •
■

».

ond other leading

Private leased

SAN FRANCISCO

•

Chicago Board of Trade

commodity exchanges

radiotelegraph

eireuH.tO'Honolulw

LOS ANGELES • NEW YORK •

PORTLAND • HONOLULU • AND OTHER
«

...

• -

CHICAGO * BOSTON •

PACIFIC.TIOAST CITIES

SEATTlB

The Commercial and Financial Chronicle.,.

a *u82) j
running

kept

Changed Economic Importance
Of Outstanding Consumer Debt
»

By A. W. ZELOMEK*

Noting that

had

sales

debt-reduction

current

generally that they
from

Just

and the

economy

I suppose the first thing we
should do is to recognize the fact
that the
public attitude toward

one's
that

age

importance of in¬
a selling force.

dollar

dollar down and

week."

Most

consumers

unable to calculate the

were

care¬

fully concealed charges they were
paying for instalment credit, and
in some cases these ran as high
as_ two or three hundred percent
annually. The unscrupulous oper¬
ator

out

was

and did.

take

the

public,

The attitude toward the

morality of instalment merchan¬
dising came a full circle. Where
the consumer who bought on the
instalment plan had once been
regarded with doubt, the busi¬

can

terms of home

common

attention of other busi¬

chandise for

psychology of
be judged

The

and

the

who sold

nessman

selling hasun-

Such ownership was
reserved for the thrifty few, who

dergone

by working long and saving hard

the instal¬

suspicion. 1;*

n s

1 ment

ownership.

some

had

able

been

drastic
changes
dur¬
ing the past 30

substantial

such

accumulate

50 years.

Most, I
pect, can

member

the

Where

garded
to

with
A.

great
There

most

the

W. Zelomek

sinful

something al¬
about "mortgaging"

address

American

Association's

Aug. 27,

was

Zelomek

Mr.

National

Retail

before

Jewelers

Annual
Convention,
New York City.

51st

1956,

the

eco¬

instalment

are

rapid in relation

obvious

was

slowing down in this ex¬
was inevitable, sooner or

And it

■

rather

sooner

came

The further expansion in credit

outstandings for the year to date
been at a greatly reduced
rate. Between January and June,

six months of 1955.
The

change
represents the
business

new

ments. Total

in
outstandings
balance between

large

numbers

However,

tories cost
And

out

now,

in terms of

regard

instalment

and other types of credit sales?

these

Let us make no mistake about
it, the 1955 rate of increase in the

lot of money to build.
could not be

factories

of instalment and other credit
consumers was too

I do not

mean

Finally
business

must

actjyfty

is making

showing

rapid.

by this that out¬

last

excesses

point
as

that

out

whole this

the

favorable
decline in

and

new

very

despite

automobile

mobile

sales

auto¬

credit, and the decline in

residential

building.

these

in¬

policies during 1956 with respect
instalment buying, have been
beneficial rather than the reverse.
to

written and repay¬
instalment busi¬

written during the first six
months increased by only 3.1%,
end for
the
second
quarter it

Positive Values of Instalment

Selling

ness

showed

decline of almost 1%.

We have

long way from
the old days, when the consumer,
who used instalment credit was
come a

By the time third quarter re¬
ports are available it will be even

merchant who sold
credit

;

plain

that

business

new

on
the instalment basis is
expanding only moderately if at
all, and that the most important
categories
have
actually
been

Have

fac¬

these

were

year, they are now being digested
in a very orderly manner.

new

in terms of done

Slower Rate of Increase

factories.

If there

example,
total
instalment dustries had continued to show
outstanding increased by gains at the same pace as in 1955, '
less than $1 billion. The corre¬ the Federal Reserve Board would
sponding gain in the last six have worried a lot more-this
months of 1955 was almost $3 bil¬ Spring than it did about the
pos¬
lion. Every category of instalment sibilities of
inflation. We would
credit, automobile, other types of have encountered much tighter
instalment; and home repair and markets in many important in¬
modernization
loans
s h o w e d dustrial raw
materials, and a con¬
either a slower rate of increase, dition
of
excessive
speculation
Or an actual decline.
Only per¬ might have developed.
sonal loans have gained during
From the broad economic view¬
the year to date by approximate¬ point, therefore, the restraint of
ly the same amount as in the last consumers, and their conservative

Now let's consider the question
which has so often been raised:

use

selves.

credit

shrinking.

The
automobile
brought a
change
in
thinking.
Unlike
a
house, the automobile was a mass
produced product.
It could be

tend to regulate them¬

consumers

for

the policies merchants should fol¬
with

for the year to date indicates that

year

has

now,

credit outstandings and
their relation to income?
Where

low

turned
♦An

are

philosophy

Where

in terms of

called

consumer

duction.

indig¬

nation.

now,

merchandising?

was

payments.
Interest had to
paid regularly, but there was
no
regular instalment payment
schedule for mortgage debt re¬

what amount¬
ed

regarded with

rate

ment

re¬

moral

assumption

mortgage

are

might

nomic

the

instalment
was

For; what

payment.

a
10 or 15
regarded as
But even that
morally correct.
mortgage did not involve instal¬
year

re¬

idea

credit

people, who had visibly es¬
their" strength of char¬

acter,

sus¬

day when the
whole

down

ment plan was now

tablished

pretty

pansion

pretzels.

naturally, this led to many
abuses. Fly - by - night operators
peddled all sorts of shoddy mer¬

consumer.

future.

day

from

and

and growth of the
industry
naturally

stalment credit

satisfying and mutually beneficial positive value of instalment

selling to the

beer

to the

nessmen

aspiration-

the

Auto¬

too.

success

drew the

consumers

Explains

living.

that

than later.

automobile

honest and most of the time sensible

are

modern

continuing

pinched

selling

was

income

later.

The

Administration,

undergoing
would prevent those "who have shown
and

invented

increase
to

income.

consumer

however,

together

over-extended

public.
invent¬

instalment

mean,

mobile and instalment buying go

credit expansion for the year to date

consumer

the
was

tion

way
mass

large-scale

ed,

greatly reduced rate, Economist Zelomek finds
in this encouraging data to counter fears that consumer debt
is rising too fast. Admits 1955 rate of increase was too rapid
but claims end of the year total debt was not dangerous rela¬
tive to consumer income. Maintains ihat to refuse instalment
has been at

sales

some

finance

automobile

Once the

Statistical Bureau, Inc.

President, International

unless

found

automobile

;

Visiting Professor, Graduate School of Business
University of Virginia

could

Thursday, September 20,1956

tremes

gone

dangerous

terms

ex¬

instalment

selling?

regarded

cion.

the

under-emphasize

the
positive values of instalment sell¬

ing to the consumer, to the
chant, and to the economy

mer¬

whole.

For the consumer, instalment
selling makes possible^an invest¬
ment in living,
in the broadest
of the word.

sense

The economist will point out to
you that, if instalment debt be¬
comes excessive in relation to in¬

and

instalment

regarded with suspi¬
now, however, I be¬

Even

lieve

immoral,

was

■

come, there will be
adverse effects.

two types of

The modern mortgage is an
stalment
tion.

contract

Without

this

type

In¬

dura¬

long

of mort¬

gage, the number of families who

their

homes would not
year
(1) There will be a liquidation have been able to increase as
dangerously large in rela¬ of debt, where before debt had rapidly as it has.
been
increasing, and this will
The automobile unquestionably
have a depressing effect on the
provides some degree of pleasure
own

own

standings at the end of the
were

economy.

This

is not

announcement

The

to the entire family group. To a
(2) Merchants will experience much greater extent than 20 or
losses, if consumers cannot pay 30 yearslago, however, it is a real

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Offering Circular.
% ™
an

their debts.

Have

$35,000,000

where

reached

such

many

that

Dated October 1, 1956

Due October

The issuance and sale of these Bonds are
subject to authorization
Interstate Commerce Commission

income,
than

1, 1983

peak

earlier

forms
it

was

that

1956

BEAR, STEARNS & CO.

IRA

BAKER, WEEKS &. CO.

ADAMS &,

HAUPT A CO.
NEW YORK

PECK

F. S. SMITHERS &,

CO.

H. HENTZ

CO.

HANSEATIC CORPORATION
VAN

FAHNESTOCK & CO.

ALSTYNE, NOEL &, CO.

WM. E. POLLOCK

FIRST OF

BURNHAM

CO., INC.

GREEN, ELLIS & ANDERSON
HIRSCH

& CO.

September 20, 1956.

PUTNAM

FREEMAN

E. F. HUTTON

COMPANY

McDONNELL &, CO.

COURTS & CO.

MICHIGAN CORPORATION

AND

new

terms

economic

other

activitv.

obvious

then,
year's rate

CO.

& COMPANY

witness

would

has

come

And

it is now,

the

this

substantial

rate

continued

ratio

expan¬

increase

instalment

time

lower

than

the beginning of the year.
I would not claim that
see

credit.

the

excess

seems

debt
pres¬

was

will

of instalment
me,

experiences

however,

the past
encouraging,
and should allay some of the fears
which have been expressed.
We
six months

know

from

are

very

past experience,

dur¬
and other periods
of business setback, that consum¬

ing depression
&

COMPANY

GOODBODY

SWISS AMERICAN CORPORATION

CO.

exceedingly
honest
in
terms
of
paying
their
debts.
Losses originating in this form of
ers

family

makes

are

selling have been small, even in
bad periods. Moreover, the trend

for the"

easier

convenient

invest

and essential transportation.

that you will

sure

with

that

agree

is more
than a luxury. Instalment selling
of jewelry makes it possible for
families to invest in gifts which
me

jewelry

might otherwise have to be fore¬
gone.

Instalment
tors

lies

selling of refrigera¬
possible for fami¬
in health. Modern

makes

to invest

refrigeration is also

a time saver;
with daily shopping in most fami¬

lies

thing of the past.

Instalment

selling of washers,
dryers, and ironers makes possible
family investment in laundry

services.

;

increase

disposable income at the

ent

that

GREGORY &, SONS

$3,000

plainly is
high ground
instalment selling, just
in

mobiles

not continue

never

AUCHINCLOSS, PARKER &, REDPATH

in the

sion, and this is exactly what hap¬
pened. Meanwhile, disposable in¬
and

BAXTER, WILLIAMS &. CO.

reduction

FRANCIS I. duPONT & CO.

SHEARSON, HAM MILL & CO.

to 80%

from

must

of transportation to their
Instalment selling of auto¬

Job.

had

and

indefinitely.
But it also seemed plain to me
at the beginning of the year that

INC.

75%

were

last

could

TUCKER, ANTHONY A CO.

in¬

indicates

were

in terms of

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

REYNOLDS &. CO.

all

this

What

The

SHIELDS &. COMPANY

relative

years,

brackets

$6,000,
that

&, CO.

The

brackets, who owed some
instalment
debt,
had
increased

Price 100% and accrued interest

LADENBURG, THALMANN

little

the

come

by the

income

CO.

had

with

who

house and children and

do family shopping, and to
growing number of men who
find the automobile an essential

disposable

consumers,

reached from

HALSEY, STUART &

year,

time

1940.

11%

number

above

AMERICAN SECURITIES CORPORATION

14%

compared

that

about

the

form

the

people seemed to be afraid
they were. Consumer debt

reached

Mortgage Bonds, 534%, Series H

are

for

still

point
immi¬

beginning of

outstanding

Southern Pacific Railroad First

the

dangers

nent?
At

wives

convenience—to
care

Reaching the Danger Point?

Over-Extension

Risk

I think you will agree

that

these

all

are

with

desirable

from

the consumer's viewpoint. By sell¬

ing
take

the

some

instalment

risk that

plan,

some

consum¬

become
over-extended,
pinched for a period of
time while they are reducing their
ers

and

will
be

debts.

refuse

sell

the

instalment

plan,
on
the
other
hand, would prevent consumers,
who have
shown generally that
they are honest and most of the
time

sensible,

devices
and

from

which

investing

synonomous

essential

are

to,
modern

with,

living.
From the merchants'

viewpoint,

I don't believe I have to

to you

that, whether

stalment

selling

have

choice

but

do it well.

point out

like in¬
detest it, you
you

and

Consumers will choose

merchandise first because of qual-

Continued

page

mar

ronicle

(ii83)

-7>

-Jvk'M k;'

Bank of America

The First National

N. T. t S. A.

4;.';.
'r

VV.\,

•

T "

' 'W;' '

' 5

> »

'■

'.,.4 V-'

.■ „V.:">.•

•'■

•

-iV

•,

J..',

■

'V-

•

Bankers Trust

■

'■ ■'

■' /

The First Boston

Corporation

■

and Trust

Smith, Barney & Co.

Company

'•

SaaFraadsta

Fnrm r

Chemicrf Can Exchange Bank

Lazard Freres & Co.

- ~ •;

American Trust Company

„

Company of Chicago,^

R. H. Moulton &

Blyth & Co., Inc.

Incorporated

Continental Illinois National Bank

The Northern Trust

(

Harris Trust and Savings Bank
J. P. Morgan & Co.

of New York "

The Chase Manhattan Bank

Company '*

Guaranty Trust Company

;

City Bank

of New York

■

Glore, Forgan & Co.

Drexel & Co.

C. J. Devine & Co.

■

;

Merrill

Lynch, Pierce, Fenner & Beane

The first National Bank

i-0:

•

The Philadelphia National Bank

C>:

Equitable Securities Corporation:
William R. Staats & Co.

•

;

•.

-...

r'i'- '

■■■■

■

Dean Witter & Co.

Reynolds & Co.
k: '(:~y' '

-VU

;

lot Angeles

Company

Saint Louis

i.,:S

California Bank

Bear, Stearns & Co.

Mercantile Trust
.

-j",

LOS ANGELES

;

.
■

"k'n-'Kyi:

Pressprich & Co.
.

Netv Issues

Seattle-First National Bank

of Los Angeles

R. W.

■

»fPortland, Oregon

■

Security-First National Bank

■

CITY SCHOOL DISTRICTS

J-

l-'v-'j;

•

CITY JUNIOR COLLEGE DISTRICT
kvk
.j

3lA% Bonds,

...

;

>;'•
J. Barth & Co.

Election 1955, Series B
Los

City School ^District

Amounts

''tk

Ira

Haupt & Co.

E. F. Hutton & Company

Laurence M. Marks & Co.

City School

'P/^

High School

;

$400,000

S400.000'

400.000

400,000
,y;

400.000

400,000 j
400,000

;

400.000

400.000k

400.000
,

V; 400.000
.

:kk 400.000;

400,000

400.000
:

•

400.000

••

k '

400.000

■

400.000

k':-

400.000

1966

2.75%,

1968

1973
1974

3.05%

360.000:

1975

•

.-A

Van Alstyne, Noel & Co.

Byrne and Phelps

Barcus, Kindred & Co.

Julien Collins & Company
Xycy

Field, Richards & Co.

1976

1969
:

.1970

1971
1972

360,000
:

Third National Bank

■

Blunt Ellis & Simmons

H. E. Work & Co.

Company

The First National Bank

Shelby Cullom Davis & Co.

Folger, Nolan, Fleming-W. B. Hibbs & Co., Inc.

1977

3.05%
3.05%

G. C. Haas & Co,

360.000

360,000

1978

3.10%

Lyons & Shafto

400.000

360.000

1979

Incorporated

400.000

360.000

1980

3.10%
3.10%

400.000

360.000

1981

3.10%

of Los

bonds in

principal and interest,

under existing statutes, regulations

We believe these bonds
banks and in
the

legal investment in New York for trust 'funds and savings
California for savings banks, subject to the legal limitations upon
are

Sutro Bros. & Co.

Robert Winthrop & Co.

Breed & Harrison, Inc.

Corporation

Hooker &

Fahey, Clark & Co.

First National Bank ol Minneapolis

Fay

Henry Dahibcrg and Company

Glickenhaus & Lembo

of Saint Paul ;

of the bank's investment, and are likewise legal investments
California for other funds which may be invested in bonds
which are legal investments for savings banks, and are
eligible as security for deposits of public
moneys in California.

Hannahs, Ballin & Lee

■

McDonald-Moore & Co.

iv.;-k J. A. Overton & Co.

Pierce, Carrison, Wulbern, Inc. Rodman & Renshaw Soden Investment Company
Stroud &

bonds, issued under the provisions of Division 3, Chapter 17, California Educa¬
tion Code, for various school purposes, comprise separate issues of three distinct
districts. The bonds of each issue in the opinion of counsel constitute the legal and
binding obligations of the issuing district and are payable, both principal and interest,
from ad valorem taxes which, under the laws now in force, may be levied without limitation as to rate or amount upon all of the taxable property, except certain per¬
sonal property, in the issuing district.

Company

Wachovia Bank and Trust Company

Zahner and Company

Incorporated

E. Ray

Allen & Company, Inc.

Doll &

Isphording, Inc.

The Continental Bank and Trust Company
Salt take City, Utah

The First of Arizona Company

McMaster "Hutchinson & Co.

Seasongood & Mayer

Newburger, Loeb & Co. Piper, Jaffray & Hopwood

Wagenseller & Durst, Inc.

Tte Weil, Roth & Irving Co.

The above bonds

are offered when, as and if issued and received
by us and subject to approval of
legality by Messrs. O'Melveny & Myers, Attorneys, Los Angeles, California.

September 19,1956

v,k..,Yt

Arthur L.

■

:'-<k

k'c.-Y k-kk\

■

v,,';Z'i

'■

•

'. r.:-r

Wright & Co., Inc.

: 7

THnsy and Company
i•

Wood, Gundy & Co., Inc.

Ellis & Co.

The First National Bank

.x-

Stsns & Youngberg

The First Cleveland

and court decisions.

' "

•

Townsend. Dabney and Tyson

Dempsey-Tegeler & Co.

These

Newhard, Cook & Co.

Stern, Frank, Meyer & Fox

Stubbs, Smith & Lombardo, Inc.

of Cleveland

Fred D. Blake & Co.

amount

opinion of counsel, interest payable by the
upon their bonds is exempt
from all present Federal and State of California personal income taxes

■

VV*

Kenower, MacArthur & Co.

The National City Bank

of Minneapolis

agencies of Los Angeles

the holder. Coupon

;v-;'

Foster & Marshall

Kalman & Company, Inc.

Northwestern National Bank

the office of the Treasurer

the fiscal

Angeles County in Los Angeles, California, or at any
County in New York, N. Y. or .Chicago, Illinois, at the
denomination of $1,000 registrable only as to

■■

r. i'':

C&Y'

Due October 1,1957-81, incl.

1, 19d6

Principal and 'semiannual interest (April 1 and October 1)

;

Thornton, Mohr&Farish

»f Memphis

400.000

f-v;

Vi'51''?,.- -*",V".

in Nashville

400,000

Shurnan, Agnew & Co.

R. D. White &

400.000

i '

Wm.J. Mericka&Co., Inc.

Taylor and Company

400.000

In the

Hill Richards & Co.

Dated October

New York Hanseatic Corporation

Newark

Burns, Corbett & Pickard, Inc.

400.000

The Illinois Company

Incorporated

National State Bank1

,,MJs
"f" '
Wm. E. Pollock & Co., Inc.

"400.000

.400.000

Hirsch & Co.

3.05%

360,000

••

Tripp & Co., Inc.

2.90%
2.95%
2.95%
3.00%
3.00%
3.00%

360,000

...

Kansas City, Nlo.

Ernst & Co.

Provident Savings Bank & Trust Company

2.90%
k

Irving Lundborg & Co.

2.85%

1967
i

City, Mo.

-•

Cruttenden & Co.

2.85%

360,000
k,

2.80%

1965

Incorporated

2.70%

1964

360,000 k
•

400.000

1963

360,000

■

Incorporated

2.60%

?•

360,000 k

360,000

400.000

400,000

1962

2.50%

1961
•'

360.000

400.000

tob.ooo

i960

: <.

360,000:": ■
360.000

.2.40%.

360.000

400.000

^.1959,

;

360,000

400.000

400.000;

Incorporated

Chas. E. Weigold & Co.

2.20%

360.000

'N*

400.000

k* 400.000 Vf.
V-400,000 f:

;i 400,000

'
:

2.00%

1957

360,000

v*i k

360,000

400.000

:'V

Roosevelt & Cross
^

A. G. Edwards & Sons

Kean, Taylor & Co.

Yield

1958

"360,000

;

Price to

•

;

360,000
;

.Vfk--

Due

$360,000.'" k '

400,000:'v';

-j*.

5 '

400.000

■*

."'k-:.

City National Bank & Trust Co. Commerce Trust Company

Ginther, Johnston & Co.

'('I;'.'-.

■r.k

Carl M. Loeb, Rhoarfes & Co.

G. H. Walker & Co.

Kansas

„k

Junior College

400,000

Gregory & Sons

W. H. Morton & Co.

Dominick & Dominick

•

■

L. F. Rothschild & Co.

■

Francis I. duPont & Co.

Company

^krk,kk

y:k

Coffin & Burr

Incorporated

•

kak

■

R. S. Dickson &

Added)

•_

•

Bacon, Stevenson & Co.

Incorporated

of California

$10/000/000 Los Angeles City High School District
$ 9/000,000 Los Angeles City Junior College District

Trust Company ol Georgia

William Blair & Company

J. C. Bradford & Co.

F. S. Smithers & Co.

Andrew's & Wells, Inc.

;

Issues, Amounts, Maturities and Yields
to be

Y'p1' 'x' 'f'.k,';

Bacon, Whipple & Co.

Financing the Educational Needs

$10/000/000 Los Angeles City School District

v.vii,.w\\ r u.-.;:
' 'k f

■

Higgmson Corporation

Schoellliopf, Hutton & Pomeroy, Inc.

Shearson, Hammiii & Co.

City Junior College District

(Accrued Interest

Lee

(Incorporated)

Wertheim & Co.

City High School District

Laidiaw & Co.

John Nuveen & Co.
:

Hornblower & Weeks
'i

Angeles County, California

Clark, Dodge & Co.

A. M. Kidder & Co.

■

:';V

C. N. White & Co.

' '"'i'' •;_ '•

■

and

The Commercial

(1184)

Financial Chronicle

Thursday, September 20,1956

...

Corporation—Analysis—H. Hentz & Co., 60 Beaver
4, N. Y. Also available is an analysis of

Beneficial
1
..

..J; "

!. Street, New York

■

Jack

Heintz,

Inc.^.;

Caterpillar Tractor Co.

Memorandum

—

available

memorandum

ciation
Des

Smyth, 29 Broadway, New York 6, N. Y.

Cashiers'

Analysis with particular reference to fifteen
which should benefit from its spread—Bache &

bulletin oh Comtio Shoe Machinery Corp.

V /V

Stocks—^Bulletin—Wm. H. Tegtmeyer
Salle Street, Chicago 3, 111.

Bank

South

Stocks

the

and

Cost

stocks and dividends

Association
Firms, fall
golf tournament at the White
Beeches Golf & Country Club,
Ha worth, N. J.

"•
Manufacturing—Analysis—Dreyfus & Co., 50 Broadway,

Joy

Co.,

York-5,-N. Y.

New

;

'J1..'

Living

1871-1956—Study of

Beach, L.,I».

•?,

&*1taackie;

Plus—Report—Singer,* Bean
change place, New,York 5, N. Y.

New York Week End Stag Party
at
Dune
Deck, Westhampton

•-

New York 4, N.

Rockfoird,Securities Dealers As¬
sociation seventh annual

Inc.-r-Bulletin—Harold C. Shore & -Co., 50 Broad
\ Street, New' Ycrk 4, N. Y. V'ji •.
^
ICx:" '■'?*

Westminster

Life Companies,

Current information

—

Yamaichi Securities

—

North

try Club.

New York 5, N. Y. Also in the same issue is a
in the 30's which appear attractive.

by John

Firms

son,

ernors.

delphia luncheon meeting at the
Union League.
Oct. 11-13, 1956

—

Florida

ciation

Analysis

Co., 115 Broadway, New York 6, N. Y.

•

—

-•

Textile Industry— Memorandum

Street, N. W-, Atlanta 3, G%

Goodbody &
v
; f

'v;vV.
&

Associates,

•J. 1303 Wilshire Boulevard, Los Angeles 17, Calif.

American Sumatra Tobacco Corp.

Study
Co., 39 Broadway, New York 6, N. Y.
—

—

Mo.

Wl"

American Telephone & .Telegraph. Co.—Table. of related values
V —New York Hanseatic
Corporation, 120 Broadway, New York

Corporation—Data—Bruns,

Street, New- York 5, N. Y.

Nordeman

Also in the

Technicolor.

same

Co., 52 Wall
bulletin are

ciation

(Palm

Spring*

& Company
development of plastics from citric acid.

Co-authors, Drs. Knuth and Bavley of Chas.Pfizer
present paper detailing
A

chemical

used

commonly to

Asso¬

Convention

Nov. 14, 1956 (New
^

%ork

City)

Association x>f Stock Exchange
Firms

meeting of Board of Gov¬

ernors.

Nov.

25-30,

1956

(Hollywood

Beach, Fla.)

and discussed 'cur-^

new ^materials

Annual

the El Mirador Hotel.

sll rCommon Use of Citric Aci^

Jacques Coe &

1956

National Security Traders

Plastics and Soft Prinks

Shopping Centers, Inc.—Analysis—Scherck, Richter

320 North Fourth Street, St. Louis 2,

24-27;
Calif.)

Food Markets ^Bulletin —stWolcott

(Miami, Fla.)

Security Dealers Asso¬
meeting at Key

annual

Biscayne Hotel.
Oct.

Courts & Co., 11 Marietta

—

(Philadelphia, Pa.)

Municipal Bond Club of Phila1-

Supply—Bulletin—Harris, Upham

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

Stock Exchange
meeting of Board of Gov¬

Oct. 8, 1956

Corporation—Analysis—Winslow, Cohu & Stet¬

26 Broadway, New York 4, N. Y.

Westinghouse Electric Corporation

(Detroit, Mich.)
of

Ferry, Inc.—6-page

Vapor Heating

Harris, Upharn & Co., 14 Wall Street, New York 5, N. Y.

Association

description—General Invest¬
ing Corporation, 80 Wall Street, New York 5, N. Y.
Telecomputing Corporation — Analysis — Holton, Hull & Co.,
210 W. Seventh Street, Los Angeles 14, Calif..

Pocket Guide for Today's Investor—Pamphlet containing lists
of selected
securities for income, growth and trading—

Company,

Oct. 4-6, 1956

Corporation—Analysis—Amctt, Baker & Co.,
Y.

Broadway, New York 5, N. Y.

Society of

golf outing and field
day at Medinah Country Club,
Medinah, 111.

Corporation—Analysis—Laird, Bissell & Meeds, 120

TMT Trailer

Analysts

Chicago

Inc., 150 Broadway, New York 38, N.
Sunbeam

(Chicago, 111.)

Investment

Company—Bulletin—Peter P. McDermott &

Stanley Aviation

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureau, Inc., 46
Front Street, New
York 4, N. Y. X

Oil

Oct. 4, 1956

Co., 44 Wall Street, New York 5, N. Y.

Over-the-Counter Index—Folder showing an up-to-date com¬

World

—

Co., 724 Travis Street, Houston 2, Texas.

Pacific

Southern

Thatcher, Jr.—Association of Mutual Fund Plan Sponsors,
Inc., 400 Madison Avenue, New York 17, N. Y.

data

Trading Depart¬
6, N. Y. .
Memorandum — Underwood,

9, Pa.

Sept. 27,1956 (New York City)
Corporate Transfer Agents' As¬
sociation 10th annual outing at
Colonia Country Club, Colonia,
n. j. ■
r\
$"■

;;

list of issues

Origin and History of the Contractural Plan—Edited

Quaker City Life Insurance Company — Analysis — Schmidt,
Poole, Roberts & Parke, 123 South Broad Street, Philadelphia

Cincinnati

Co. and Nationa 1 Acme—in current issue
of "Gleanings"—Francis I. du Pont & Co., I Wall Street,

Milling Machine

and

Canadian Oils, Limited

Neuhaus &

Machine Tool- Industry—Review with reference to

Atlas

Eppler, Guerin & Turner,

—

...

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

American

Analysis

ment,, Ira Haupt & Co., Ill Broadway, New York

Japanese Stocks

Alpha Beta

•—

McGregor.-Doiiiger; Inc.—Analysis—Unlisted

New York.

Canal

Inc.

Fidelity Union Life Building, Dallas 1, Texas.

"Fling-

Dmg" at the Forest Hills Coun¬

Companies—Operating results of first
1956—Blair & Co., Inc., 44 Wall Street, New York 5,

Sept. 27, 1956 (Rockford, BL)

Lanolin Plus,

Fire Casualty Insurance

Exchange

Security Traders Association of

Turnpike—Analysis—Tripp & Co., Inc., 40 Wall Street,

during inflation and deflation

—Hugh W. Long and Company, Incorporated,
at Parker, Elizabeth 3, N. J.
,

Suez

Country

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

Illinois

Lanolin

day at the

and

Division,

Stock

•

field

Golf

Sept. 20, 1956 (New York City)

Due

Canada- 3Bonds

Moines

Club.

1996-8—Analysis-^E. M. Saunders Limited, Victory Building, Toronto 1, Ont.,
Canada.
V'"* 'r":,"'X'
' '': >»* v *<*%■•
Gridoil Freehold Leases, LtdL—Bulletin—DeWitt Conklin Or¬
ganization, 100 Broadway, New York 5, N. Y. Also available

Co., 36 Wall Street, New York 5, N. Y.

half of

(Des Moines, Iowa)

annual

—

companies

common

Laird,

Bullard &

Machinery & Chemical Corp.—Study—Filor,

Government

Common

Sept. 20, 1956

Electric Products.

Sylvania

Bank of .New York — Circular —
Bissell & Meeds, 120 Broadway, New York 5, N. Y.

Food

120

First National: City

Navy's billion
dollar atomic propulsion program including a tabulation
showing the companies now working on the Atomic Air¬
craft Propulsion program.
Also available Atomic Fund's
annual report illustrating atomic industry by means of color
photos—Atomic Development Mutual Fund, Inc^, Dept. C,
1033 Thirtieth St., N. W., Washington 7, D. C.

Chicago

Field

Iowa Investment Bankers Asso¬

pleased
parties the following literature:

Atomic Letter (No, 21)—Comments on the U. S.

Automation

Investment

Parker &
Redpath, 729 Fifteenth St., N. W., Washington 5, D. C. .Also

that the firms mentioned will be

send interested

;

Colgate Palmolive Co.—Memorandum—Auchincloss.

Recommendations & Literature
to

EVENTS

Moore, Leonard &

Lynch,-Union Trust" Building, Pittsburgh 19, Pa.

It is understood

COMING
•

add tang to

Investment Bankers Association

found

soft drinks has been ing methods and properties of the
recently to make possible resulting products. The most satnew plastics. 'Versatile-citric acid,; isfactorjr
method of preparing
an essential ingredient in products
the base resins, he said, was to
ranging fromt foods to Jiairirinses chemically combine the citric acid
—and, more recently, an impbr- first 'with glycol, and then with
tant factor
in
rejuvenating' oil 'ally! alcohol. Peroxide catalysts

America annual convention
Hollywood Beach Hotel.

the

April 21-23, 1957 (Dallas, Tex.)
Texas; Group
of
Investment
Bankers
Association > annual

meeting at the Statler Hilton
used to
X Hotel.
of resins.
the American Chemical Society,
Paralleling
the
recent
trend Nov. 3-6, 1957 (Hot Springs, Va.)
National Security Traders Assoholding its 130 national meeting, toward "alloying" in plastic mate¬
was
informed Sept.' 17 by a re¬ rials, the investigations described
ciation Annual Convention.
also

wells—can
prepare

employed

synthetic

certain

resins,

were

cure

among

the

new

the

agents

group

DEALERS

again suggest you and
clients can profit in:

your

Electronic Stocks

Charles

Dr.
that

This

industry

fourth

now

largest

the

chemist

Pfizer

Chas.

Co., Inc., Brooklyn.

United

States.

Electronic Association President, Dr. W. R. G. Baker,
predicts
an
increase from its $9 billion sales to $15 billion

polyester

resins

Knuth

resins

citric

with

made

have

come

acid.

reported
could be
Polyester
wide

into

use

Along

With Many Others,

•

Aerovox
•

1960.

Trade and Position:

Corp.

Aircraft-Radio
•

bodies,

radomes, boat hulls
applications,

structural

and other

Pfizer

scientist

described

the method used to prepare

Dr.

these

Corp.

citrate

—

with

Collins Radio
•

Dynamics Corp. of Amer. Pfd.
•

«'

Are Your Records

have

Incomplete?

"-Jfi-

Litton Industries

•

Diversified,

Hycon Mfg.

* Jack & Heintz

•

Investors

joined King Merritt & Co.

Electronic Associates
•

v•

the past decade for automo-

The

Airborne Instr. Lab.
•

over

bile

Knuth also showed that
polyesters could be
Joins King Merritt
copolymerized with vinyl acetate,
<Special to The Financial Chronicle)
methyl methacrylate or triallyl
WORCESTER, Mass.
Joseph
citrate.
Dr. A. Bavley, another Pfizer Deery has become associated with
research chemist, was co-author of King Merritt & Co. He was for¬
the paper, which was presented merly Divisional Manager in Wor¬
before the Society's Division of cester for Investors Diversified
Paint, Plastics and Printing Ink
Services, Inc. Charles E. Aldrich
Chemistry in the Traymore. Hotel.
and Clarance Irvine, also formerly
by

these

;

•

DEPENDABLE

"FOR SALE"

Perkin-Elmer

MARKETS

P. R.

Mallory
Sprague Electric

•

Beautifully Bound Set of

Troster, Singer & Co.
Members New

"CHRONICLES" from

1938-1950

York Security Dealers Association

74 Trinity Place

•

HAnover 2-2400

Available in New York

New York 6, N. Y.

City—Write

Teletypes NY 1-376-377-378
Private Wires To

Phone

CHICAGO

P^T^OIT

GRAND

LOS

REctor

2-9570

' Edwin L. Beck

HOUSTON

CLEVELAND

R/.PIDS

DALLAS

HARTFORD

PITTSBURGH

ST.

LOUIS

ANGELES

PHILADELPHIA
SAN

FRANCISCO

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

DEMPSEY-TEGELER & CO.

(1185)

| Making Fuel Products bom <
Asphalt Revealed by Chemists
successful

researchers'

Oil

Humble

Six

hydrogenation

?:
gains

from

possible increase in

A team of research

chemists and

Oil '& Refining Company

of the
products
including gasoline, heating oil, oil
hydrogen

suitable for catalytic cracking and

oil,^ it was reported
national meeting of

fuel

130th

the

Chemical

American

the

Owing to

issue

Sept. 13.

Society,

become

increase the economic

incentive for their installation."

Sept. 17, at Atlantic City, N. J.
Although asphalt has never be-

The

paper

was

presented

partner

Woods,

President

of the

Securities
in

whose

publish this

behalf

111.,
happy

Broad

Mintz

Investors
.a

offipps

from

431

Exchanges.

are

Nat

Philip

Main office will

and

way,

~ *

K.T

were

for-

Edman

and

fices

gage

431

Assistant

Texas

much

gas

ing
'

use
t
.

;

material

•

$19,648,000

suitable

quality

Officers

in,residual fuel oil have been

Nassau County,

Clarence

S;~ Wagner,

illliillllii

New York

3.40% Bonds
Dated October 1,

1956. Due October 1, as shown below. Principal and semi-annual interest (April 1 and October 1) payable
County Treasurer of Nassau County in Mineola, New York, or in New York, New York. Coupon Bonds
in denomination of $1,000, convertible into Bonds registered as to both principal and interest.

at the

office of the

•

;

of Asphalt for
was
the title of

"Hydrogenation

•

Fuel

Products"

the report,

which

was

prepared by

Mr; Heinrich in cooperation with

including chemical engineers G. T.

;

from FedefH and New York State Income Taxes j
j%nder Existing Statutes and Decisions

Interest Exempt

six other Humble Oil researchers,

•.

Gwin, JE., J. Hoffman, R. £, Manns
and.

•

and

MiBer

C. L. Thorpe.

iWui*;-:;

Economic

I;'

Eligible, in

research

chemists Dr. H. W. H. Meyer

our

AMOUNTS, MATURITIES AND YIELDS

"The significance of

United
may

States,

this devel¬
economies of the

and

the World

be quite tangible," the speaker

asserted. "Its wide adoption

could
mean a sizable increase in avail¬
able energy from present crude
petroleum reserves, especially
from the huge reserves of rela¬
tively high asphalt content crudes.
"The

Banks and

•

Significance

opment to the

as Legal Investments for Savings
Trust Funds in New York State

opinion,

and

Amount

Due-

2.70

770,000

1961

•

Pricn*
to

Yield

2.85

770,000

1962

$1,330,000

1970-71

1963

2.95

1,995,000

1972-74

3.20

1964-65

3.00

1,885,000

1975-77

3.25

1966-67

3.05

1,830,000

1978-80

3.30

1,330,000

2.50

785,000

•

1,330,000

2.25%

1958

2.80

Due•

Amount

Yield

1,540,000

1957

770,000

1960

770,000

$718,000

1959

Due

Amount

Yield!

775,000

Price*

•Prices,

1968-69

3.10

3,050,000

1981-85

3.35

2.90%

•

3.15%
:

(Accrued interest to be added)

petroleum refining indus¬

try has worked continuously to¬
ward the goal of obtaining the

the more valu¬
products from each
petroleum, while de¬
the
yield of
residual

maximum yield of

The above Bonds

able distillate
barrel

creasing

offered, subject to prior sale before or after appearance of this advertisement,
and if issued and received by us and subject to the approval of legality by
Messrs. Reed, Hoyt, Taylor & IVashburn, Attorneys, New York City.

are

when,

for delivery
/

The development pre¬
sented in this paper is potentially

products.

another step

toward this goal and

possibly an important step, in that
it presents a means of conversion
of asphalt to distillate products
in good yield and without loss in

The First National City

Eastman Dillon, Union Securities & Co.

Phelps, Fenn & Co.

Halsey, Stuart & Co. Inc.

Lehman Brothers

Bank of New York

Goldman, Sachs & Co.

Kidder, Peabody & Co.

total volume of conventional fuel

products.
"The

. ..

to have
practical
application
from
the
standpoint of investment and oper¬
ating costs. Investment is com¬
paratively low for conversions of
this type because of the relatively
mild operating conditions and the
reasonably high throughput.
.

process

cost, greatly influ-v
enced by the life of the large vol¬
ume
of moderate-priced catalyst
required, is reasonable because of
the
long life predicted for the
in commercial operation
—upward of one year, at least.
Investment
and
operating
costs

catalyst

low also because

of the sim¬

plicity of and infrequent need >|or
catalyst
tional air

Mercantile Trust Company

Merrill Lynch, Pierce, Fenner & Beane

Pressprich & Co.

appears

"Operating

are

R. W.

regeneration: conven¬
regeneration at intervals
is employed.

of 500 hours or more

B. J. Van Ingen & Co.

Shields & Company

Inc.

••-v-5'

Hornblower & Weeks

Kean, Taylor & Co.

W. H. Morton & Co.

Bacon, Stevenson & Co.

Incorporated

' '

Malvern Hill & Company
Incorporated

•

Hallgarten & Co.

••

•

•••..

Geo. B. Gibbons & Company
Incorporated
'

First of Michigan Corporation

A. G.Incorporated Co.
Becker &

Baxter, Williams & Co.

Eldridge E. Quinlan Co. Inc.

DeHaven & Townsend, Crouter & Bodine

Schwabacher & Co.

Julien Collins & Company

•.

Bear, Stearns & Co.

Adams, McEntee & Co., Inc. ■

.'l.

Burns, Corbett & Pickard, Inc.
/

in Nashville

Rodman & Renshaw

September 19, 1956.

R. H. Moulton & Company

Third Nashville Bank

Braun, Bosworth & Co.

•

•/;

Byrd Brothers

are

Sturgis May, President and

for

made from a 100 barrels of asphalt
—with an over-all profit of $50 to
$80 — according to Mr. Heinrich,
who carries, out exploratory research in petroleum
refinery
processes
and products for the
Baytown, Tex., oil company.

en¬

Street;to :engage in a
business.

New Issue

oil suitable as catalytic crack¬
feed stock and 45 barrels of

POINT, N. C.—J. Sturgis

barrels of gaso-

McGinty,

May & Co. has opened offices at

meeting in the Shelburne Hotel./line and heating oil, 40 barrels of

James

Street

Secretary.

been changed to Harding & Co.

Secretary-Treasurer.

J. Sturgis May Opens
HIGH

Treasurer;

actually presided,
produces
about
105
barrels
of
products from only 100 barrels of
asphalt, Chemical Engineer R. L.
Heinrich told the Society's Divi¬
sion of Petroleum Chemistry at a

—

securities business.

917 Dermy

Calif.

Thomas

ployees Investment Plan with of¬

James

method

be at 120 Broad¬

Jr. have formed Government Em¬

securities

hydrogeneration

mem¬

Employees Inv. Plan

FAIRFIELD,

Secretary. ; Mr.

•

firm,

New York 5, N. Y.

Govt.

merly .with Philip Gordon Cp., Inc.

Stroot

new

Tucker,

merge, on

;

Girsky, President;

Tannen,

The

and

will

Exchanges, will be known
Tucker, Anthony & R. L. Day,

Street,

York

Girsky and Mr. Bisgeier

business".

ROth"

New

Co.

bers of the New York and Boston

Emanuel Bisgeier, Vice-President;
Melvin •Heiman, Treasurer;
and

Corporation', is

securities
at

Heitner

Fourth

Day

Stock

Street, New York City,
in a securities business.

to engage

the

and

limited

Anthony &
Oct. 1, 1956.

Form Churchill Sees.

notice.

YORK,

Co.

Churchill Securities Corporation
has been formed with offices at

Fofm Mints Investors
WEST,. NEW

Yates,

members

Railroad

are

partner

Haeussler

Midwest Stock

Chicago,
we

Brown

320 North

Officers

conducting

Fund,

Paul

general

Walter

er¬

the name of the author of
article, "Bargains in Rail¬
road Bonds," published on p. 10
in the "Chronicle" of Sept. 13,
was incorrectly shown as Ches¬
ter S. Everson.
Actually, the
author is Chester S. Iverson,

process

process may

typographical

Sept. 30, Sumner Shapiro will

the

Refineries

LOUIS, Mo.—Following the

dissolution

ror,

is especially applicabl* ' to
refineries operating
hydroformers or other sources of
by-product hydrogen. Also, the
possession of fuel products deasphalting facilities is an advantage in that the asphalt feed is
available. However, where these
facilities are not available, "the

to make useful

residual

Applicability
"The

combining asphalt and

by-product

refinery

has sue-

the

stated

energy

Humble

ST.

process

chemical engineers of the
ceeded

Bonds,"

Chester S. Iverson, not Everson,

from present crude reserves,
particularly high asphalt crude, and the method's practical
application from investment and operating costs point of view,
seen

Railroad

Tucker,.Anthony &
1
R. L. Day to Merge

Join Yates, Heitner

Name of author of article,-^'Bar¬

produces about 105 barrels of fuel products ;
only 100 asphalt barrels. Tangible economic significance

asphalt

Shapiro, Haeussler

CORRECTION

Fahey, Clark & Co.
McDonald-Moore & Co.

The Commercial and Financial Chronicle

(1186)

Where Do We Go From Here

moderated, but ^aside-from an? -rice. In-some respects our wheat
intolerable-scheme of production • and rice industries are comparable

they

qaotSs
"

can

nated.

Problem?

With the Agricultural
By JESSE W. TAP?*

ucts

'Bank of America, N. T. & S. A.

sible for farmers' complex

and diverse problems and proposes:

William

ago,

years

the farm
;

distrusted

who discuss

the

most

have been

tried

know
found

the

capita

per

new

the past and

names

and

•

illustrations

point

business

out
is

are

of problems -of; farmers is ^the inflaf:- \ , '
' tion. in fafm production and dismerely tribution costs. While this effect

and

that / the farming
part of our ever

the

man

w. Tapp

distrusted

'
-

who

states

that he has some simple over-all
formula for the solution of the

(3) There

review

brief

some

agriculture's prob■'

in demand.

have made the.

cases

needed^ ad-

are

the

all

but under the seductive names of

"price stabilization" an! "price
support." These operations rave'

inventory t problem

^ large.jiumbers, of. .farmers,
in,ir
■

product

tends

en-

courage

^uld easily lead to further steps
.

determination.

"Where Do We Go From Here?
The

facts

outlined

above t are

designed to indicate the complexity and diversjty of adjustaerit
problems faced by our agricultural

Industries.

Thev

point

the fact that

no simple
soiution is indicated.

over-all

ffbnorbtinnp
'generations

bur

litroot

livestock

„

f mom®°t ls

^™2tTSS'Ve Promises^
f°™e,

Is P™"?-

S^J^nnientahze farming.
°lJ^,

the loss cf both
the revolutionary progress in contributed to
agriculture as a whole. In im- domestic and foreign markets.
S.nnnrt wnuM if rarH.H
Our experiments in pried fixing'
thP? rm. . 1 .
portant areas of the country,
have added some ctimnlna in »v-i the farming business further down
farming by the methods of a few

SitoUon 5^Sfib£>

the/°^ Of governmental control

for
decades ago is no longer economic,
and, because of reasons of topog- natural fibers/ They have encour-.
Anothei*
aged
the shift from butter to s?me.
raphy, soil, technical know-how,
vegetable oil product substitutes about the
etc., the'possibilities of mechani-

shift which appears largely
are lim- —a
.
These factors give rise to irreversible.
Our price fixing and governsome of our most urgent regional
problems - of - agricultural adjust-, ment ^storage policies have tended
to place the United States farmers
production and often cause wide ment.
•
'
"
•
year-to-year changes in income
(4) -Important adjustment prob- in the position of residukl supTPnr
For

lems.

in^nded

though some are still searching
a'magic over-all formula for

growth

all-purpose, easy solution to the in agriculture by modern techcomplex of adjustment problems nology. In a sense these farmers
Iacec* by farmers it jnSy be well have been left stranded as a result

problem since the problems
underlying -factors responsible for
agriculture can not be resolved
these
by
some
general
formula
approblems;^ Thisreview is
proach. And finally, the man is not
to be
inclusive^
(1) The farming business has by
to be distrusted who says "let the
nature
certain
inherent., characfarm problem ride."
The adjustment problems of agriculture are teristics of. instability and change,
too important to - all segments'; of So have most other , businesses in
the national economy to be al- our fast changing economy.
lowed to "ride." Most students of
Farmers
must contend
with
agriculture
will
concur
w i t h
variations in climatic conditions
these Statements of Mr. White al- which affect yields p^Mcre and

the solution of

--The government's farm

for

the

large numbers of justments more difficult of attainFarming
farmers in the United States who,' ment. This is particularly true of.
In or^er to focus attention upon for one reason or another, have the price-fixing actions from. 1930
fact
there *s .no single, not or can not meet the pace set to date which have been! carried

farm

ceeded

Adjustment Problems In

cur-

new

Underlying Factors Responsible

foreign markets. Second,

the

upon

toward world wide restrictidnism
*° trac*e
farm products which
is hot limited to agriculture, its could further hamper our ability
impact is much more severe in ,*°, marker such products; as corn,
the farming business because of Wheat, cotton, tobacco, and rice in
the nature of the demand for farm *°reign markets.
Such a result
products in a non-war economy, would be_ most detrimental to
Furthermore!, it "tends to encour- farmers. Hence the liquidation df
age" the belief that' the farmers' Present inventories must be. ap(problem is primarily a price prob- Poached with patience as well as

prob-

mesbc^

point

some

rent income of farmers,

to meet the aojustments m

/cx

Jesse

pact at

much

consumption

with

time

demands.- It is

culture has made revolutionary
slogans. It is not uncommon for progress jn the past 40 years and lem which can be met by price
lem because agricultural
economists
to
be-»««««** oaaespecially since 1940. This is re¬ manipulation when as a matter of
farmers are chided because they
know too flected in
higher production per fact the adjustment problems are
facedwith much
about proposed
solutions acre
and per man-hour as well as much more difficult than that
difficult prob- that won't work, and too little
k
'
the higher aggregate production.
(5) Governmental po.ictes have
lems
of
ad- about the merits of the latest proIn many; segments of agriculture contributed
to
the
adjustment,
justment to posed cure-all.
the growth of production has ex¬ problems of farmers and in some
f arm

•

wheat, rice and ships for wartime

Even the .shipbuilding industry
after
the growth in demand;; the demand subsides tnan it is
m

there

enormous

production

many years.

unsatisfactory.. Some we • changing dynamic economy. NonFirst, the man have tried more than once With * farming businesses have Similar
is to be dis-[the same, but usually more ex-- problems.
f
■-'*
trusted who pensive, experience. Others are in
(2)
The
mechanization
and
says that process of being tried a second modernization of commercial
agri-

problem.

seen

the

•

that

those

are

easmr

for

meats has increased.

expansion

de-

to citrus and other fruits has been

These
Allen White stated that three men

have

tury 'we

our

other

continuing farm-governmentalization.

are

Certainly the

the ' government's

and community or regional approach;
(3) using present policies temporarily rather than as a primary
goal or means of attaining effective adjustment;' and (4)
cessation of easy answers via legislative route, for it leads to

shift

The

the demand for products
Twice in this cen-

of
of

cotton, wheat and
products from prior years'
production is not likely to be accomplished without serious im-

concerned;

and related

formation programs,

About

characteristic

markets.

far

end.„

disposition
inventories

all types of panicky prosince 1940
posals for disposing of the aecuj for frozen concentrates in the the case of wheat and rice.
mulated surpluses* There is real
*citrus field has greatly changed
Technological progress in agri- ;danger that the methods adopted
| the complexion of our fruit grow* .culture is also encouraged in war- ?may lead to further
restriction?
ling, processing and distributing
time* duenjfr [part to; thef [urgent
industries, and the Cnd of such
of the needs and in part to farm and hence to more serious
producr
1 ? changes is not in sight.
In the
labor
shortages
and
higher in- tion adjustment problems. : Two
other direction we have witnessed
ducements in the farm prices;
price systems, export subsidies,
[for years a long-term downtrend
Another legacy of war which • ®tc., may help to move existing
f in the per capita demand for po¬
tatoes and wheat products while vastly complicates the adjustment surpluses - temporarily,
but they

real foreign and domestic markets instead
of price fixing, production control and foreign dumping;
(2) full employment in non-farm economy and decentralization
of non-farm employment----invo!ving educational and job in*
(1) building

the de¬
farm prod-

individual

for
are

in progress

Bank of America Chairman reviews the basic factors respon¬

Thursday, September 20,1956

farmer in the

shipbuilding industries in

our

mand from apples and dried fruits

'°r

elimi-

\p\'

•farm

Chairman, Board 0f Directors

not

Long-term ' shifts
mand

"""

...

"zation and modernization
ited.

are a legacy of wartime and pliers of products for fdreign marpostwar developments in the de- kets. Products once accumulated

,lems

»i* - ,
;
' industries have been character- mand for farm products.
Trie; proposed solutions of the ized by', cycles of
expansion and ":
Wartime and post-war relief
farm
.; problem- about
which we contraction. This is in consider- demands provided a great stimu-

.....

the

hands

the

heed is to get rid of
; established
illusions
effectiveness of price
5 acreage; controls,
.the
soil b^nk, and other appealing dea

larm income. These may be necessary tools as a part of a pro-,
deal with some, of our
P5es,fn^,
problems, but

.na^. be the primary

government'

SSf

arf

farm ad-

outside of .normal trade channels

foreign 3
program.
' .
V
M
_
.
#
i"' able measure due to the biological lus to farm production in order markets except in times' of war
The attention of farmers, fartn
American aFarm
Lonomics^AssocStion nature of these industries These to meet temporary needs. This is or great relief demand. Their sale leaders, and the related industries
Asiion-.ar, Calif., Aug. 29, !9sgl
cyclical fluctuations can no doubt particularly 1 true of wheat and becomes a matter of high State needs to be focused Upon the job
policy and the difficulties of sale °t building real markets—domesare enormously Increased
by the "C and foreign—instead of upon
fact that international trade policy prife fjxm£ and production conThis announcement U not an
between Trienaly nations is inThere is still much room lor
ojjer o] securities}or sale or a solicitation of an ojjer io buy securities.
difficult

are

sell

volved

September 14, 1956.

150,000 Shares

tobacco and wheat.

Here again it
likely that the inevitable

appears

reversal

[

expanding

the •; consumption

price fixing policy has also farm Products bv proper emphasis
tended to stimulate foreign pro- UP°J} fbe upgrading of diets with
duction. This is especially true of, part;cular
attention to meat s,
cotton and to a lesser extent of ^airy
products, and fruits and
Our

New Issue

The Hawaiian Electric Company! Limited

•

policies

will

damage to some extent our normal
commercial - trade relations with
induced

the

2% Hawaiian Withholding Tax)

expansion of-the livestock
by shifting acreage to

industries

the production of feed grains and

pasture.
.

Price $20 per

plus dividends accrued from July 15, 193S

The

acreage

allotment

may be obtained from either oj the undersigned
the underwriters named in the prospectus) as may
legally ojjer these securities unJef applicable securities laws. '■
are among

centralization

non-farm

em-

ployment will be most helpful in

this process. Some redirection of
educational and job information
programs

also

called

for

the opportunities for cooperation
between business and agriculture

adjustments
to

and

encourage

some
uneco-

of the

icies
led

the

large

post

war

have

such

the

products

regarded by many as the
serious aspect of our "farm
problem." It has been pointed out
that the mistakes which the govmost

ernment

farmer

makes

tend

fall

behalf
back

indeed.

The United States is fortunate

years

accumu^tion

inventories

are very great

pol-

governmental

now

Dean Witter & Co.

great need to speed

desirable
areas

the hands of t^e government that
this problem of the government is

Dillon, Read 8c Co. Inc.

these areas. A combined regional
and community approach to some
of these problems is required and

Finally
(who

There is
up

have not been very effective in controlling production,
but they have tended to prevent
programs

nomic adjustments in oth^r areas,

Copies of ihe prospectus*

situation and of the possibilities,

the agricultural adjustments
of our
called for in the disadvantaged
The use of acreage controls in areas in agriculture. Full employan
effort to control production ment in the non-farm economy
and maintain fixed prices for cot- and further progress in the deexpand because
price umbrella activities. <

ton and wheat has added stimulus

(Dividends subject to

of the countries which have

been

(Cumulative) Preferred Stock

Par Value $20 per

these

some

(A Hawaiian Corporation)

Series F 5V2%

vegetables. The efforts being
!?a
1.
National Cotton
Coupcd both at home and abroad
a.^e illustrative of the needs of the

having
most

equipped,

the most
efficient,
and

the

productive,
the
best

most

dynamic

agriculture in the world. Our primary objective must be to preserve these dynamic qualities.
If

the

to do this, we must eventually terminate a quarter century
of futile and damaging price fixing for major farm products. We

the

must

we are

reverse

the

current

trend

Volume

toward

184

the

Number 5570

external

/dumping of. farm

The Commercial and Financial Chronicle

internal

and

De¬

products.

sucn

programs.

From

Washington

Ahead

fact

developing.

that

has

reduced,

they
the

don't say they would
They just say they can
get* the friendship of foreign nations cheaper.
:
H

cut it out.

if mili-

drastically *

were

H. Jerome flyers With

admit, that

prominent place in
.They account for

occupy a
economy.

Bear, Stearns & Co.

about.$40 billion out of a gross
national production of about $410
billion. • It
is
a
fact, too, f tnat
Eisenhower started
out
with
a

sharp curtailment of' governmentspending and found himself runmng nntc, . business

Kefauver

sub-

studying the

economy

which" is

The
-

Senate

been

the

upon

tary expenditures

/••

price-fixing

impact

the

was

War headed it off.

committee

By CARLISLE BARGERON
production ;
Those pundits who a few weeksv»about the "new-Stevenson,'! but it
; quota road in
agriculture,, includ- i
;ing the soil bank, leads progres-7 ago were writing that Harry Tru-/is/doubtful anybody engaged it
man
was
through. are probably would be this kind of newness,
sively toward the governmentalization of agriculture in our most/' revising Their opinion.* Not only;;:! don't think he has yet resorted
to .the time-old Democrat whip¬
is ne
very acproductive farming areas, and to &
tive in the
ping boy _pf Wall Street but give
/the.; rationing of poverty in the
shim 'time .and I am satisfied he
/disadvantaged farming areas. This campaign but
*
/is probably what the editor of the his /influence "'
wpl, get, tn it. ,£ ■ g
...
, /
V* sIt is impossible at tnis time to
New Yorfc ."Times"; had to - mind ; on/A d.l a i ' *
>
tell ''how
effective
this V; type of
when commenting recently /upon | Stevenson is
unmistakable. '
'campaigning is, but make no misthe farm "problem' as follows:
He seems, in
> take, 'about
it, it is hurting the
."The farm-problem is. a greats f
a c t,
to
be
/Republican political managers
leveler
and
unifier..
Let
the
writing the ,//
•here! Indeed, it is making Eisen; staynchest • free marketer
and
Tdtfe A6f thevy
hower wince. He never foresaw
rugged individualist tackle; it in D
e m .o c r ai t *
.i the
day when he would be talked
public office, and he will end up
campaign. Al- about
in
such
a
manner.
He
; on
nearly i common ground witn
though Stev- *
doesn!t like it and it will be inThe

business

Korean

pendable markets for farm prod- *
pets can not be built on the basis i
of open or concealed export sub¬
sidies or multiple price systems.
/Destruction of potential, markets ♦'
is a more likely eventual result *

(1187)

7: So,

„

Bond^Depdrtoent

: -Mr. Ayers. was formerly wUh Hi-

s!«m^

while

f-J7 H
i- Wall
S cH
Y .T ^
^
c^n^e*
that H. Jerome Ayer$

it'may be that no riman Ripley & Co. Inc.
small part Of. the prosperity is dueVJ • : V i.'<
^:
to rhilitary. spending the Rehub- T
licaiis certainly didn't create the '

•

mahes the

spending^ jQ ^ ^

necessary.

•

^ a/0l'f

with

political

campaign.

NEWARK, N. J.-John J. Ryan

dea7will

form John J. Ryan &'Co. with
Street, as of
1. Mr. Ryan is a partner in
Ryan, Hanauer & Co.^ which will

offices at 786- Broad

Another

sore

point

•

raised

Oct.

Kefauver, and Stevensonf too, is
that our diplomacy has. been so

the veriest New Dealer—Controls

;

and Subsidies."

But "controls and subsidies"

consistent

not

enson

with

are

;

subsidies

and

economy.

are

had

xxCx*

borrowed

BOGOTA,
formed

—

Thomas

Hellene

Securities

was

with

he has gotten down on

Burnham Partner
will

become

limited

Stevenson's

opening

points

are

There has

been

plane
a

the

same

Truman,

lot of publicity

conducted

nenl

™

°.

_ft

rharf?p

prosperity we

dI^enioymg.
This second

that

have

•

have

friends.!

have

alliances
but

most

us,

envy,

is thought pro¬
*,
The
so-called
friendship
the least./ It is
/have had has been bought.
thought provoking in that it is
also bought under
something people should be think- / it was

voking,

one

say

still 10 million workers

when

employed
come

World

un-

War

and, after the conclusion

of this war,

decided slackening

Democrats.
,

;

FIF Inv. Assoc. Branch 7
TA^TAT^A

„r

had

attitude of other peoples to-

wards

•

JAMMCA, N. Y.—FHF Investof mutual ment Associates have opened
a
generally branch at 178-03 Hillside Avenue
have

if not one of
/one of intense dislike.
r

dissolved.!

lost

the

/convenience

"^Srosoerit/we /the

oninvinp

:-Sfie^s.al^ver th« 70^ld-1 dou"
lost
the word but
don't
and

"were

demagogic
William H. Weintraub

wasn't

hearhis

fighter, that he was too mild in mg abput. But it can hardly be
his attack, in short, that he was
an issue against the Republicans,
too gentlemanly. Stevenson seems Heavens knows the less prosperity
to be trying to remedy this with f that we enjoyed under the DemOevery speech. Which is to say that cra^s was based - on wars.
There

offices at 181 Chestnut Avenue to
engage in an investment business.

V,l

that

Particularly irritating to the Re-

Truman's

Chicago convention Tru¬
man's expressed objection to
Stevenson

teresting
speech;
Two

Truman's

At the

'/'"//.

Shoolis and Angelo Plomatos have

Carlisle Bargeroa

ghost
continuing answer to the ad-: writer. Truman must be chuckling
justment problems of their impor- to himself at the change he has
tant
segmentr ofthe American brought.

Form Hellene Sees.

blunt

-as

controls

ru-

SGiK? heU'P type I?if

/ business. Farmers will not be con-

with

an's

toneiie^ hisZ'oeeches

productive, and efficient farming
tent

a v e

dynamic,

"doesn't

*"n?er the direction of Robert T.
Bnn.
1 '.KT

the 0f

Peter R. Brooks & Co. has been

Their suggestion now

changed to Brooks & Brooks. Ofthat they could acquire. this fices are at 15
Wayside.
friendship through their person-/
ality is galling. But here again
A. H. Kreiger Opens
the Democrats are astutely play- L

ing/von a sensitive cord of the'
American people.The people seem,
increasingly annoyed over
foreign aid./Stevenson and

to/be
the

BRACKETVILLE, Tex.

Oct. 1

partner in

of the New York Stock Exchange.

This announcement is not

Steven Randall Co. Formed

•>

ojjer of securities for sate

or a

solicitation of an offer to bug securities.

V".

Steven Randall & Co., Inc. has

been

with

formed

offices

September 19, 1956

New Issue

4/Exchange Place, New Yotk City
•

cohduct

business.

securities

7..;.

Uji

IT." v';

Id.

-p*
'

$75,000,000

Realty Interests Opens
PELHAM, N. Y.—Realty Interests, Incorporated in engaging in
a
securities business from offices
*

Lincoln

C. I. T. Financial

Avenue.

Corporation

4lA% Debentures, due October 1,1971

Price 98.64%

Brazilian Taxes and Business Or¬

ganization—Walter H. Diamond
—Matthew Bender & Company

plus accrued interest from October 1, 1956

Incorporated, 443 Fourth Ave¬
New York 16, N. Y.—$10
one year's service including

nue,

for

Copies oj the prospectus map be obtainedjrom such oj the undersigned
(who are among the underwriters named in the prospectus) as map

reporting changes in laws as
well as pending legislation and
c

legallp ojjer these securities under applicable securities

estimates of chance for passage.

Equipment

Contractors'

laws.

Owner¬

ship Expense—Revised manual—
Associated

General Contractors

of America, Inc., Munsey

Build¬

ing, Washington 4, D. C. (paper)
$1. '
'
./
National

Standards

Economy
Reck

—

Modern

Salomon Bros. & Hutzler

Lazard Freres & Co.

Lehman Brothers

Blyth & Co., Inc.

Harper & Brothers, 49

East 33rd
N.

Edited by Dickson

Kuhn, Loeb & Co.

Dillon, Read & Co. Inc.

Street, New York 16,

(cloth)

v/■'//■'''

$5.

the Third Annual
New York
State Consumer
Credit Conference — New York

Eastman Dillon, Union

Securities & Co.

Glore, Forgan & Co.

Goldman, Sachs & Co.

Proceedings of

Consumer

State

Finance

Jehring—Profit

Sharing

Research Foundation, 1718 Sher¬
man

\7S"

Merrill Lynch, Pierce, Fenner & Beane
/-'

Stone & Webster Securities Corporation

Smith, Barney & Co.

White, Weld & Co.

A. G. Becker & Co.

Succeeding With Profit Sharing—
•'

Ripley & Co.

Incorporated

Asso¬

ciation, Woolworth Building, 233
Broadway, New York 7, N. Y.—

(paper) on request.

Harriman

Avenue, Evanston, 111. $4.

Baker, Weeks & Co.

—

Allen

H^Kreiger is conducting a securities business from offices at 217
Ann Street.

\ Burnham & Company, 15 Broad
/ Street, New York City, members
/

Now Brooks & Brooks/

But« / SHORT HILLS, N. J.—The firm

Spencer Trask & Co.

Incorporated

The Commercial and Financial Chronicle

...

(1188)

12 *

What Lies Ahead For Insurance

answers

>•*;

stockholders

expect fair and prompt settlements; (2)
in a growth industry, and, in well-managed,

capital

Insurance -is' a

and (3) what should be encour¬

gams;

brought is. what you lawyers will come to the maturity
Speaking-face- since reached* abroad.
;

long

call de minimis.

clients

your

modern

life has increased and as

Wrid* dui* * companies factors at work as to price of
coverage.,v \
\
:
>

Wjth

the

benefit of

long hisi-

tory -of

business accounting, of
developing statistical theory and

number

and

for the policyholder will not

population

density

However, there are at present practice, and with the age of
two obstacles to prompt and fair'high-speed' data -processing
by
has .settlements, in "the field of third electronic methods at hand, it

grown, the risks of living have
palrty claims, of Which you are would seem that appreciable savmultiplied* correspondingly. * As aware and which cannot .be. passed /ings oh. the expense; side of -the
experience with these risks has ! unnoticed, - Both
deserve
your< premium dollar should be. .posaccumulated, and as their occur¬ careful study and, best efforts.
sible.; Moreover, laws requiring

place until the future due to the unanticipated obstacles

take
:

tempo and complexity* of

aging for the immediate present
"•

hear

dividend

progressive companies, can expect future prospect of
increases and

growth industry. It has been par¬ approach solution of the complex
ticularly so during the first half questions of fact and law which
of
this
century, as its casualty appear. in the reports of those
branch has come of age.
As the cases which are litigated.

can

are

made.

be honestly

i' Award of the Federation of

(1) claimants

suits

insurance

speech, after receiving the George Henry Tyne
Insurance Counsel, and finds:

his acceptance

are

tiously, this may be disappointing /
- •
>'•
pects of dividend increases and, to you. gentlemen ^f the-Bar; but, Coverage Price Favorable Factors
capital
gains.
Stated
at
long quite seriously/it is a tribute to - From the policyholder's point of
enough range, the prediction can ".the mutual fairness with which view, there are equally favorable

probes the future of the insurance industry, in

who

would

it said that the future pqlds pros¬

America

President, Insurance Company of North

o£ claims and losses-life fields—already broken as to j..
under■ 4hem,/it/is accidental death coverages—will
astounding how seldom there are disappear. Multiple-line will bedifferencesv of opinion leading< to *cqme universal/ Underwriting; and //
litigation. The. ratio of claims to the5 American insurance industry

Stockholders

Those of you

number

occurring

>■

:'y

Expectations ■/' /. %

stockholders

By JOHN A. DIEMAND*

Mr. Diemand

Insurance

Depends Upon Congress' Attitude
/,./

true.

come

the

these

what might be done to make

Thursday, September 20,1956

placed in the path of efforts directed toward achieving savings. ///",

North America head delves into legal battles over package
1 coverages, instalment premium plan, and action independent : '
of rating bureaus. Hopes Congressional interest in insurance

did not die with Public Law

future depends upon

rences

studied, means

been

Let

consider promptness first. - rates .to be "reasonable, adequate, /

spread them

To. quote a legal maxim, "Justice ^ not excessive and. not - unfairly
methods of under¬ delayed; is justice" denied.'! You discriminatory/' now on the books
in
this tare at once aware of the topic to. of .eyery State, would seem to
direction has broadened the in¬ which I refer. " The
problem of require
that
these
savings
be
suring public and deepened its congested court calendars is one passed on to the policyholders.
"
,

through

15, and asserts that the insurance-

satisfactory Congressional

have

have been devised to

new

writing: "Each ' success

answers.

like - love
in
the
"many-splendored

workmen's
compensation,
corn- realization of the need for new
under; anxious
scrutiny
of the
Furthermore, the widely tried
movies,
is
a
pulsory auto or uninsured motor- coverages.
/:>■;/
/>• .rbench.-and
bar ..throughout
the and proven practices of instalment '
thing." The Supreme Court of the ist funds. Then, again, virtually
A sensational example in
this country. Let me urge each of you.■^inarming, ; prevalent" in
almost :
United States, in a case we will every one of you in your daily
direction has been the develop¬ to do his best to solve it. *.
everv
other- -field
of
business
t
want to re- practice either is, or represents, ment of
As to the question of fair settle-:wouid
personal accident and
lead
you
to expect,Hhat
consider to- or defends, claimants under polsickness insurance. You are equally
l
they jvill continue to be. there- -would be no difficulty. |n
day, points out icies. Some of you may be on the
aware of the current pressures" for
the rule if both sides approach
making the; same. conveniences
that it is one staff of law committees of multiwidening
the - automobile field. them.in good-faith.Pifficulties avaiiable to buyers of .insurance,
of our largest. company
organizations, such as
It takes * no; great imagination: to. arise when either side sets out to jn
virtually no States are there
w?f
"industries/' rating, service or advisory organi- appreciate' - the/.similar trends over—reach the other. Such tac—
laws to prevent it,"
• i
"
touching the zations. Finally (and this is probwhich must follow as the peaceful tics are soon discovered. A hatlives
and ably
Why, then, should I hesitate to
the smallest group) there
uses of nuclear energy expand.',
ural, if not-; wholly- justifiable,, paint a completely rosy picture
property of will be judges who preside over
Thus, speaking ip. broad out¬ reaction takes place. Dealings.ps- from the policyholder's point of
nearly
every
and decide insurance litigation, or
lines, there is every / reason , for cqme at arms length, and if this/view? m brief, it is because of
man, woman legislative
and
supervisory of¬
ficials who make and administer long-range' optimism among the continues long enough, fists ap- -experience pf my* own grodp
and
child
in
Insurance,

„

•

the

'the country.To

judge' its

laws

'
_

quires
A.

John

Diemamd

r e-

from

many

points of view. To varying niunbers 'of you each of these points
Of view is your own. -No.doubt
many of-you- are stockholders in
own

;my

other

perhaps both.
that there
are,
an

companies—

Again, I

am sure
those of you who

are.

like myself, on the staff of
insurance company, as house

counsel

officer.

there is any one

doubt

that

of you who is not

covered by one or more insurance

%■

'•<

applicable
•

.,r

•' ,i

classes

will

ests

you

his

has
own,

chances,

any;one

bought no coverage of,it is most unlikely that,'

governmental
schemes

such

of all
compulsory
social security,

•An

address

Federation

Houston,

Aug.

22,

Mr. ..Diemand before
Insurance
Counsel,

'in,

'.j

• j

of these

each

immediate^

•

have

different

inter¬

far
*

as
.

opinion

cornel true as

answers

can

give

so.

you / one

what

the

•

mans

answers

should be to each of the groups I
have
mentioned:
the
staff, the

stockholders,

policyholders,

the

claimants,

the

officials

their

who

Then

counsel

deal

let

with

/'What
like to

reply .to the question,
lies ahead?'*" they should
hear it said that they can

continue to expect

the

Policyholders Hope for

announcement

is neither

principles which have guided
our

companies since their found- /'

ing—that

we best serve our stock-'
holders and agents when we best
serve the public—we sought /to
take advantage of every oppo'r-

tunity to provide the broadest and
simplest coverages at the lowest

There is

different
the

fair and prompt

reason

reply.

number

to give any

Having in mind
policies

written

daily by all types of insurers, and

offer to sell nor a solicitation of an offer to buy
offer is made only by the Prospectus.

any

»»

of these shares.

What

""I"*'"'

answer

Kay Jewelry Stores, Inc.

could

not

any

see

there

how

valid

does

the

when and how each new form of

coverage,

policy-

each

scale of rates,

new

and each new method, of premium

financing should be put into efIn, feet. Again, we could hot expect
with all other buyers, he that
the officials charged with
are

discussing?

for

servicesS

convenient

thing but an encouraging reply in
long-range terms. For the imme7
diate present, there are very serir
ous problems.
■

Capital Stock
(Par Value $1.00 Per Share)

With funds to back their under-

obtainable from such of the several under¬
as are registered dealers in this state.

better goods (in our supervision of our business would
at better prices, and immediately
and automatically
terms.
approve every proposal we might
Again—but subject to consid- present. However, we saw then
erations I shall mention shortly— no reason to anticipate the long,
there is no reason to give any- bitter and concerted opposition by

hopes
case

150,000 Shares

are

sound underwriting and allowed
by law. •
:/
/;//////'/•-

holder hope to hear given to the
common

Copies of the Prospectus

terms

not

question

writers, including the undersigned.

and on the most
consistent with

prices

convenient

might

would

business

turn.

ISSUE

Price $21 Per Share

possible

■

The

NEW

completely

new;' We; saw/ them developing
more than ten years' ago. True to

objection to
Better Services
;
these. principles,
nor ; any
good
Now let us turn to the, largest legal
ground for contesting Jour
and most important class of per- right to follow them. To our mind,
sons
concerned With
insurance, then and now, these were printhe class to which I am sure you ciples which should guide every
all
belong — the policyholders, member of the industry.
They are our customers, and "the
customer is always right." This is
Unanticipated Obstacles -;
not
pat and pious motto.
It is
Naturally, we could not expect
good, hard business sense. With- every one of our-competitors to
out
the
customer's
dollars
the acquiesce in "every detail as to

settlements.

and

consider

claims,

wheels
This

sugg^t details-. x>f j^^ gpok^

layrflan;;4o

business.

1956.

<*"•

the

the
the

well man¬ /Pea^rvaf the'.ehd& 61 the arms..?:
-of:eompahiesr'-':r: r
aged and .progressive insurance
The/subject-need not be pyfr « These conditions favorable to %
companies.
From a* shorter and- sued further:
I have

more cautious,/ In. the next/few
aA
1 jwyers-r
business, and will be
months/insurance,
in
common either, for.: claimants or for com.-',
looking for different answers to with all other
business, faces the panies. However, let me .suggest
the question, "What Lies Ahead
nervous
uncertainty surrounding / this ^thought: ; - - «
/;•.
•
/
f0r.Insurance?'/ Mapy of you will an election/
MoiieQvejr,this/ is the
n©
^Bendirig' every • effort 'to \ get the
putting- the question simtilseason; when the younger sisters iaist dollar out; of the companies
taneously from several points pf
pf those lusty, gusty, ungracidus
can/ in the . end, be as harmful to
view. The basic problem of those,
and expensive ladies, Carol, Edna claimants as can last-ditch relike myself in coriipany manageand Hazel, may visit the scene.
sistance tor claims' by companies,
ment, is to recognize these quesSomehow
or
other
the
courts,
tions and points of view, to know
Claimants' Expectations
the answers you wish to* hear, to
Nowiet us turn to a class which legislators and supervisory officials find ways of dealing with
work out the best reconciliation
is larger than stockholders, but
0ur judgment suggests where these
pver-zealous advocacy on either
less
intimately
connected
with side.
■//■■/ /:'/•',■
answers
conflict,
and
then
to the companies — those presenting

falls completely outside

\ .'t

you

policies or plans. Even if, by the make these
strangest

busi¬

the

of sound,

;-»♦*-

;

Those

look

•atit
each

•

ness.
./*

future

stockholders

writing higher-than

in our
history, and with more capable
people on their staffs than ever
before, the insurers of this country are better than ever equipped
to
give the insuring public the
broader
and
simpler coverages
they have every right to. expect,
Again, now that the legislatures
of every

ever

State in the Union permit

our
competitors, and the dimculties of administrative interpretation which we have since

faced.
You will recall that in 1944 the

South-Eastern Underwriters Asso-

ciation case reached the Supreme
Court of the United States. In it
the Federal Department of Justice
had charged that this Association,
its member companies, and officers
had violated the Anti-Trust Laws
by

using

methods

coercive

freeze forms
of coverage, premium rates and agents' commis-

underwriting by sions. The defendants demurred
qualified
insurers,
it on the grounds that these were
would seem that the legal road not matters of Federal
cdncern;
has been cleared for fire, marine since insurance was not interstate
and casualty companies who wish commerce.
The Supreme Court
multiple-line
properly

Lazard Freres & Co.

give

service

SeplenilK-r 14, 1956.

their
it

imagine that before
riers

between

full

policyholders

in their field.

the /future,

the

Looking to

not

hard

long;the barlife

and

ruled

that the

demurrer was

sufficient,

that

commerce

(interstate

when

non-' lines);

conducted
-md * that,

insurance

commerce

across

inwas

the

State

alleged

Volume

184

Number

5570

.The Commercial and Financial Chronicle

v-: 1

will

character
RooAtit

charges
the

were

79th

tried; because

never

{."t v

niffimiiHAc

•

——

—"

states.-/?"y:
"0W€?verY without extending
. z.:
J
"

Congress passed in 1945r

; :

and

moral

good

adequate

mitted

ability;

and so--that tha solvency*-of. ths?
underwriters- is made as certain
' ; as possible; •
4;'V//rj V;<?

J?\es$ remarks beyond allotted Independence,irf Rating Bureaus » /2\ Promulgation of the broad;
fW* and limits of your patience, , With - respect to^ our general -es{ p0ssi«le Lneral rules as to
J C^rran :Act.:Knowing the evils
n*h}:~ ot. ' Wal^r. partial. ;inde-i pr0per.-forms and rates and then
the. President .approved, its
Public Law 15, known as the M<0

ket

ation tof the business of insurance
V* '•

*-«

"»

""^V --TV'

wa.y

ton

•

legislation

during £;

'conditioned

was *

not

, ,

by
as

regula¬

tion of Insurance?" As counsel for

cials,

as--supervisory
offi¬
judges and legislators/
do much to shape the an¬

If you

and

in company

management continue to make the

public interest
as

our

prime concern,

pledged to do, the an-?

are

is. bound to be correct.

swer

R. N.

which§ ministratiy.e and judicial • records., *:

Rarengo Opens

brief)

RENO,
is

Nev.^—Ross

engaging

Building.

Barengo

securities

offices

from

ness

busi¬

the Rayland

;^ C ''•?.: .Vv;:

;

apply,

;of Federal law

suspension

•

sure

companies,

conduct that work of needlessly technical and
the West Coast. - inflexible rules as' to: the precise
Ycd*- like yye,'ynusti be Asking ;?wordipg of "forms, spe0fic ,figures

of our hearings, trials and tribulations, you would find it hard to
believe the extent of concerted C
the existence opposition/ wo have- met from -our' State

ly, to
)uld
iuuuci

upon very significant conditions,; dependently
^
^^
^
After 'giving the States two years Unless you fook/ttie hours :and'afo. obliging ..us .to
to perfect" their patterns of -ihsur- "days iiecessaiy .to. review the ad-I same struggle , on

ahee;

uujpiciHc

continued' regu^

the

c9Yera-Ses), our rate deviations, of the -United States, even though •
those who w^h tp dO
our mstalrnem premium Plan.; the: NewV: Y6rk -Superintendent, ' so m-me PMpnc interest.^
j
me also say
word>as to the - hlL th^: courts of that State,- and - ( QC? T KniTO nCfi/l tVin t!TAT»l4 "control?;
On : the other hand, \ iiVir\linP
-A.

declared

'nevertheless

Congress
t

found t

are

can

to "What lies ahead in the

swers.
llieillf-

■-

Unless «and< until satis-'

factory answers 1
Congress, no one

you can

correct

■

dozen years ago, depends
answers to the questions

the

upon

•I* have put.

and

^UUil)

tt*

(1189)

---

«««

Hyman Goldstein Opens

legislation which, followed, which the strength Of our/country

control.
_the place of

regulation.. Furthermore,;competitors to oOr placing these
iCajri IL be that it is still possible
hasea, disappear wnen
FLUSHING, N. Y. — Hyman
Federal, law \yas to apply in any improyemehts befqre the insuring for insurance-companies acting in *n
Goldstein is conducting a securi,1s ell^,e takes
case to acts or agreements of boypublic? * / /" [
V:/ \. v * '* ... concert; and thfough their brgani- reg^1?t*orl' :yW«en;"dead statistics ties business from offices at 147-09
cott, .coennon or intimidation; It?
The contests otrer
Instal-' nations, to stifle competition and
tho
Seventyrfirst* Avenue.
He was
k
most important to recall: tb at :meirt
with
First. Investors
prenjiumEndorsementwere': throttleimtiatWe?
diaDter and formerly
this law was jpassed ;only after; long and bitter.
Corp. and Ellis Greenberg Co.?
Thty involved the rate of progress to the pace-J"1"*/ !sFv"
industry representatives had at- administrative hearings demanded of the majority?
verse
tempted-r-and failed—rto persuade. by our competitors in more than
.^,
.r
.
'
.
..
„
,KTUU
You may be sure that interest.
Congress that the insurance busi-; 20 states, and appeals to the courts1 >Confusing^ Reguiation
Withi m the questions I have put ex- •With Piercer Garrison

of State

ff",

eanth«y.slow^"''b?

'g;

ness

entitled

was

exemptioh
Laws.

iAt

■

indent^of ^Coh%

this^^ stagethe

seemed abundantly clear,
nothing has since happened to

gress
and

becloud

(Special to The Financial Chronicle)
-v .. tenos far beyond those of us who
JACKSONVILLE, Fla.—Gladys'
Ihef State are here today. Congressional inmisunder- eres.t in the business of. insurance R. Thomas and Katherine :M.
viginrau; Texas has -its oWri noter stood;; given by:^-;-4id. not die^whem Pu^c; Uaw 15 Hohle have joined the staff of
plan, and Virginia is about .to set;U°nSress -in Public Law^ 15; to was enacted in the 79tn Session., Pierce, Carrison,. Wulbern, Inc./.
to set-Congress in
la;
Barnett National Bank v Building, ij
one
up.
As to deviations, our* "^regulate" the business of insur- You have only to look at the calcompetitors forced. us into long ance.^^ Have ; they,^^ lnstead, ^ead endar of the 84th, dealing with
and expensive hearings and litiga- into that Act a direction to "con- flood, crop and war risk insur
; With G. H. Walker;; ;
tion in Pennsylvania, Illinois and.}roV> l.^r. "bormit private control ance,., nuclear
energy,
Workmen's
(Special to The Financial Chronicle)
Compensation,model
and
New York. At present .we are in of': oiir. industry?
in ^ura^e-i proDiems, to real-;
BELLEVILLE, 111.
Elmer L.

all

it." As. in

other

na-

tional

industries,

those*

wished

should be at

compete

who

liberty to da so<' free 6f ladycdtt,
or intimidation.
On the

coercion

*'•

to a complete, in five. Now this endorsement is" ^
the ' Anti-Trust approved in -ali but ■. Mississippi,' ' Alterhatiyely, have
•'t
*
")'* Missouri,
New
Hampshire"' and supervisory* officials

from

•

Court in the-District pf.

Cpiumbia,-

;

mind, "regulation" of the

and about* to get there in North business means:
Pr°Per
Carolina. However, in no jurisdic(i) Establishment
of
proper
accustomed to doing somnder .the tion have wet -yet been .finally
safeguards; s0 that those who enprevious regime of State reguladefeated in this field. As to the
.
.
.
.
.
.
.
tion, should be permitted to do so Homeowners Policies, it has taken S^ge in it, being to a great extent
—upon
the
conditionthat the us about three years of constant fiduciaries as to the property of

other hand, those who wished to
act in concert and who had grown

States

provide regulation to pro-of this privilege.
It is safe to say that the thought

—

ize the breadth and

our

industrv

Whether

ain

depth of

ts&iuiiai

con-

interest

McCarron
Tourneau

with

not

interest

that

favorable

State

regulation, as conditionally per-

H.' Walker

furthest

■r

petitive
S.

Co./Both.,

Resident

tinued

mind

should

case

the

under

f'*.«

-'I.

if*.

'V-

con¬

protection
rikii»

fw*/

State laws,
•

New Issue

Con¬

the
anti-comcharged in the

that

abuses

the

from

was

%T&

318,098 Shares
7

r; i ft

iti

:;/i,

■i

■

Multiple-Line Legislation

the

During
torium

two-year

mora¬

United Aircraft

Congress the
their pat¬
tern
of
multiple-line legislation
which I- have .mentioned before;
granted

States began to develop

thus
<

wished
vthis

write.

action

concerted

vbufc

authorizing
fixing

price

that

condition,

the

Corporation

par

The

previously redeemed)

Corporation is offering to holders of its Common Stock the right, to subscribe for the 1956 Preferenct
^he Ijasis of one share of, 1956 iPreference Stock for each 16 shares of; Common Stock; The Subscriptibn Offer will expire at 3:30 P.M., Eastern Daylight Time, on October 2, 1956. ■

Stockion
;

the

prices

fixed should be "reason¬
able, adequate, not excessive and^.
uhfairiy/discripiinatory & Fur¬

Subscription Price $ 100

thermore, in ; each of- these laws
it was provided that:

"Nothing in this Act is intended
(1) to prohibit or discourage rea¬
sonable
competition,
or
(2)
to
prohibit
in.

rating

rates,

sys¬

rating plans or practices.
shall be liberally inter¬

tems,
This

uniformity

encourage

insurance

Act

preted

into effect
herein set forth."

purposes

its

carry

During the subscription period the
Preference Stock, including

Warrants, at prices not
not

greater than the

several Underwriters, including the

stock purchased or to be purchased by

less than the Subscription Price set

participating in the distribution to other

Again in virtually every Act it

insurer

This announcement is neither an

should be obligated to join a rat¬

The offer is made only by

ing

that

provided

was

Furthermore,

organization.

there

the

even

States

from

where

the

Stock is then being offered by a dealer not

dealers plus the amount of any concession to

offer to sell nor a solicitation of an offer to

dealers.

buy these securities.
obtainable

the Prospectus. Copies of the Prospectus are

undersigned and such other dealers as may

offer these securities in

lawfully

the respective States.

eompulstory rating bu¬

are

reaus,

few

undersigned, may offer and sell 1956

them through the exercise of Subscription

forth above less any concession to dealers and

highest price at which the 1956 Preference

in those where there are

not, provision was made for- "de¬
viations"
(or independent, lower
rates)

justify

companies

them

„

this

Harriman

cir¬

own

cumstances.

Against

could

who

their

background,

Ripley & Co.

Incorporated

?-/v

63 Wall Street,

New York 5, N. Y.

should

have

intrcducting
broader

and

had
our

difficulty

program

simpler

BOSTON

coverages,

CLEVELAND

lower rates based on demonstrated

savings in expense, and more con¬
venient
instalment
payments of

premiums.

our

competitors dicj

not wish to follow us, there should

September 19, 1956.

PHILADELPHIA
DETROIT

%•;;

■

n<i

of 1956

value (convertible prior to November 1, 1966, unless

State **

(which you all know-to be malum
per se under the Anti-Trust Layrs)
.

$100

during

every

laws,

rating

passed

Again,

nearly

period,

Preference Stock, 4% Series

the

for

authority

giving

broader and simpler coverages we-

CHICAGO
READING

Le-1

which Mr. McCar¬
Manager.; : lv ;;

Cook & Co., of
was

Laura

with / Newhard,

formerly

were

ron

Mrs.

and

have become associated

tect against abuse

gress

•

of past precenem.

„

•

The Commercial and Financial Chronicle...

(H90)

ton

Trust

the

CONSOLIDATIONS
BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

National

L
J. Brooke Willis, Associate Pro¬

fessor of Banking at the Graduate
School of Business of Columbia

University

Oct^

1, ft was announced on Sept.
by August Ihlefeld, President
Savings Banks Trust Company.

Dr.

will

Willis

direct

the

re¬

search and statistical WOrk Of the?
Trust

Company,

and conduct
studies of savings banking prob¬
He

lems.

the

will

bring

to this task

wide experience as economist for

Graduate

School

♦

Consolidation
Bank

tal

of the

of Alfred,

stock

ferred

($3,000

pre¬

$25,000 of

County,

stock)

with

common

the appoint¬

announces

ment of two Assistant Vice-Presi¬

dents

and

all

Assistant

one

the

Overseas

Cashier,

Division

Head Office. Kenneth

Rounds,
Avenida

former

Manager at the
Ipiranga Branch in
San

Paulo,

Brazil, will become an Assistant
Vice-President
in
the
South
American

District.

Everett

Tewksbury,

former Manager at
Rio de Janeiro, will be an Assist¬
ant Vice-President in the Carib¬
bean

District.

George

Thiel

will

be assigned to the European Dis¬

trict

Assistant Cashier,

The

Canadian

merce

Bank

Com¬

the election of
Robert B. Anderson of New
York,
to
its
board
of
directors.
Mr.

effected

was

the

charter

title

named bank.

the

At the effective date

announces

for

the

National

Ltd\ President

Nickel Mines Ltd. and

Crown, Trust

became

Regi^ld

H. •

and

Brayley,

President of Chemical Corn
change Bank

suddenly

attack; i he

New

was

Mr.
Brayley
banking and

York

Sept. v12, of

died

heart

years

Ex¬

age.

was
prominent
business circles

in
in

ranc
areas
wh(
where for many years he
had headed various of the bank's
offices. For the past several

years
senior administrative of¬
ficer of the bank's branch

was a

also

system.

served

corporations

the

and

boards

philanthropic and civic
.o

I'V- *

Arthur S.

Colonial

active

was

work,

Kleeman, President of
Company;
New

Trust

York, announced

Sept. 14 the

election of William C.

MacMillen,
Director of that institution,

Vice-Chairman

Board

Directors.

the

bank's

Colonial

Trust

Company is an affiliate of
Chesapeake Industries,' Inc., of
which

Mr.
MacMillan is Presi¬
The latter corporation con¬
a
number of companies in

dent.
trols

diverse domestic and international

fields,

l/y/Z/vv/o';;--'- //'•

County Trust Company of
White Plains, N. Y., announced on
Sept. 12 that Charles F. Kammerer, Jr., head of the company's
cost
analysis
department
and

Manager of the investment port¬
folio.

has

Assistant

been

promoted

Treasurer

from

Assistant

i'f

Vice-President.
v;as

Hughes,
pany.

The

made by

President

announce¬

Dr. Joseph E.
of

the

com¬

A graduate of the Ameri¬
Institute

Ajoi^ Banking,

Mr.

senior year at

the

He is

for

tive

•

Herche

' of

the

land-Atlas National Bank of Bos¬

Newark

the

ton, Mass.

The

Banking
Ne

called

p0Wer of

cluding

be-

and

be manipu-

rising prices."

cause

unfortunate
Dr.

for. this

na¬

Spahr's oninion that

has

conviction

any

policies
mate

is an invitation to ulti¬
disastrous consequences.

Two With Baker, Simonds
(Special to The Financial Chronicle)

DETROIT, Mich.—Rov G. Karro
and Frank G. Zarnowski have be¬

connected

come

monds

with

Co.,

Buhl

Baker, Si¬
Building,

condemn

our

shown

that continuance1 of the prevailing
unsound monetary systern and

members of the Detroit Stock Ex¬

change.

pur-

dollar and

consolidated

business

of
Newark,
spec&tl meet-'

the

Oct.

will

under

First

River,

bank

the

National

under

the

insurance

depreciated

for

argue

policies and savings

dollar;

BOSTON,
Freedman
with

Mass.— Franklin

has

become

Morton

connected

Co.,

131

State Street,

Paine, Webber Adds

■

(Special to The Financial Chttonicle)

Current Obsessions
We

the obsessions

living again with

are

to the virtues of.

South

charter

seems

and to correct in part or entirely
the losses suffered because of a

start

First National of Jamesburg.

latter'? charter is

Joins B. C. Morton
(Special to The Financial Chionicle)

insurance

falling prices to enhance the value
of

name

officials

companies,

m ....

/j";"

-i

of
a

the

•

BOSTON,
some

1920's

stable

«tt-f—-"1: t^ts"

in[dex of

McDonald
staff

Mass.

has

—

been

Andrew

addeo to the

of;Uaine, Webber, Jackson &

Curtis;?24 Federal ;Ftr°et.

the

T|ie

of ,th§ oldest

one

under the National Bank Act. dat-

ing back to 1804/'First National
of
South River
was
established
proposes to^ofver^
in.
to shareholder's rights to
19Q2.V£/;
// CJ?;?
subscribe
^"Besides* favorable "vote* of the
to 55,000 additional shares on the
basis -of? one ne.w share for each stockholders,
approval from the
six shares held of record at the
Comptroller "of the Currency is
stock.

age,

the

officials generally

chasing

govern-

of'
ot

l^ws"
News

"Evening
Evening

Newark

the

■

Company

has

foreign
M-i C

NeW#rk & Essex

National

and

depreciation

"Messrs. Mark and Herche said

•

business

xmr

was on September 18
Sept. 12. From the same advices
appointed Manager of the Foreign
we
also
quote:
Department. Mr. Kolby, a native
"Special meeting of shareholders
of Denmark, received his early
banks will be held
business training in Copenhagen. of the two
Since coming to the United States Oct. 2 to ratify the merger.

active

party

urge a stable index of P^ces; but,
says Dr* Spahr' none of mem> in"

ire-

two

Presidents ot tfte two

nnrisnnnSam il

Foreign Department of the Rock-

been

Victorian

ics teaches in respect to an hon¬
est and sound currency. Neither

furtjler
-

the

currency,

neither of the political parties has
shown respect in its; platfom for
the valid principles and lessons
which a careful study of econom¬

flows from a high degree of economic harmony. A rising or fall-

ment

gold standard

latjed by governments to maintain
It

Monetary
Dr. Walter E. Spahr
Policy.
The only good stable index of
prices, he continues, is that which

Various

ideas that a
honest currency, such

Siective Residents

has

Committee

the

accepted

tion, in

JJists National

also

are

redeemable

stable,

ing index may reflect, or: contribute / to,;?? more
e c o n o m i c
harmony than does a stable index
0f prjces

Vice-/

E c on o

contends

"there

Ejthat currencies should

„

prices,

?res*i|ei1*

Economist

and

longs

Soahr, Execu-. *

the

is provided by

and

says Walter E.

Vogt, one of the founders of,
predecessor firm of King &
Vogt, and President, from 1938
to 1943, of The Morristown Trust
Company. Mr. Vogt is Chairman
of the Morristown Housing Authority and a member of the
Morris County Bar Association.
*

gradual

rise

firm

the

stable indexes
of prices, or

are

mean,

of the late Carl

son

€

that

generally
sound

for

gener-

11 y

his admission to the bar in

upon
1941.

^IMark and*1John

Jl}e barik.

NSTA

Notes

close of business on Oct. 4; the necessary for the merger/ Tenta¬
subscription period will expire on tive approval already has been
Oct. 24. The offering will be
received from. Federal authorities.
un-;
derwritten by a group of under-" / "The new bank will have assets
of $26,344,217 as of June 30, makwriters headed by Merrill
Lynch,
ing it the third largest commercial
Pierce, Fenner & Beane.
bank in Middlesex County. Capi¬
Proceeds
from
the
financingwill

which

added

capital

funds,
$19,-

amount to about

now

tal
;

structure will total

$1,420,000 ; and

NATIONAL

preliminary
*

The McDowell National Bank of

Aug.

change* for
Franklin

pany

31, 1958, in ex¬
capital stock of

the

Washington Trust Com¬
Newark.

After

the

pro¬

with resources of about

Shontz

operates 20 offices located in

dent

and

Trust

the

elec¬

Russell

Vice-President

Auditor

after

taxes,

tal

stock

about
per

$1,552,000,

share of caoi-

President

outstanding

at. the end
Cash dividends have

Bycroft

of the year.
been paid on the
capital stock in
each year since 1805.
From time
to

time cash payments have

and

had

foregoing

been

had

...

others

also

been

\ *

.An

increase

1938
'

and

sjt

Mr.

the

Tamarisk

the

capital of the Exchange National

years

ago

Constitution

commemorate

Company

Newark,

National- Newark

J.,

into

Essex

Bank of Chicago, 111., is announced
as

ing

Sept. 5, the addition bring--'

the

capital

Banking Co. of Newark, the five

tal

dividend.

the

Franklin

Washing-

$1,400,000

from.$700,000. The enlarged capi¬

offices

was

brought about by

stock"

the

Association

was

this

important event

formally approved
breakfast has been

invited.
The National Committee

law

meeting and election of officers will
Saturday morning. Clarence D. Phillips, a partner of
of Phillips, Coughlin, Buell and
Phillips, Portland,

firm

Ore., will address the luncheon meeting on Saturday and discuss
"The
Power Situation
in
the
Pacific Northwest, Present and
Future."
V/
/
<". ?j.'"; ..y \
y./;y\
A style show and other entertainment has been
arranged for
•

nt rat
Following the recent ratification
of the plans incident tc^he
tcPfehe merger
of the Franklin Washington Trust

arranged for Saturday morning Oct. 27, to which all the National
Committeemen who signed the original Constitution, all Past
Presidents and members of the Present Executive Council are

the

held

the

be held

$700,000

entertainment

adopted.
To

identi¬

fied with the management.
a
°

The cocktail party
witn

Country Club.
I
the NSTA, only two years after organiza¬
tion, held its Annual Convention in Los Angeles. There on Aug. 4,

Rein-

Officer,

Twenty,

Vice-President

and

had

will

previously been

Trust

been

Cashier

and

supplemented by stock dividends;
a 5%
stock dividend was paid on
June 14, 1956.

Mr* Evans

Harrison

will

hardt, Assistant Cashier, as Man¬
ager of the Hickory Office.
-

and

which

Friday is a free day for sports and relaxation. Swimming,
tennis, golf, badminton, riding and shuffleboard, to mention a few.
Campbell Armor will be Chairman of the Golf Tournament which

and

ties in Essex County. In 1955 the
had net operating income

bank

Convention

Springs, Calif., Wednesday,
dinner, Saturday evening Oct. 27.
day for registration, getting settled and

Thursday evening will be followed by dinner
dancing.

Lloyd P. Beachy
Vice-President and

Assistant

Annual

Palm

and

Officer;

Newark, Montclair, East Orange,
Bloomfield, and other communi¬

23rd

Hotel,

address the Convention at luncheon
Thursday.

the

Cashier;

its

evening reception will be held at the pool.
Thursday morning the past and present officers will meet for
breakfast following which there will be a meeting of the National
Committee,. Rilea W. Doe, Vice-President of Safeway Stores, will

■

Board; John
Bycroft, Jr. as President; Harry
McDowell, Jr. as Vice-Presi¬

000

Directors

announce

Chairman

Sept. 11 of John H. Evans

posed
financing, the bank will
have outstanding 385,000 shares of
capital stock ($25 par). The bank,

$314,000,-

❖

Sharon, "Pa.,
tion

for

Mirador

Wednesday will be a
permit members to familiarize themselves with the excellent
facilities for pleasure and recreation afforded at El Mirador. The

Oct. 24 and conclude with
to

issued

Board

plans

convene

"reserves

$241,000."•
The

SECURITY/TRADERS ASSOCIATION

'/ .The National Security Traders Association has announced the

than

capita),

500,000. The bank has outstand¬
ing 330,000 shares of capital stock
($25 par), including 45,000 shares

the

I^r.mmerer is in his

with

associated

Fleming Kolby of Dover, Mass./
formerly Assistant Manager of the spective.

prices,
adding

prices,

which

King,

Approval has been given by the
by the stockholders of both banks
directors of the First National
Sept. 12, according to Fred¬
erick McDonald, President of the Bank of South River, N, J., and
the First National Bank of JamesState
Bank, it is indicated in
Associated Press accounts from.
bUv5' I?' J«» t(? plans for the consolidation of the two banks, it was
Albany. !
'
' -

ment

firm

law

a
of

equal to $5.97
The

the

stable

King & Vogt—predecessor firm
of Schenck, Price, Smith & King
(now Schenck, Smith & King)

the

•ing of its shareholders on Oct. 3,
OTfc? Jhjel)UfpQSe; of ^
Vice- proposal to increase its capital

vf 5///'?*//

;'■

■V

director

Company

and

attorney

Smith

either

Richfield

Springs, N. Y„ into the State Bank
of Albany, N. Y., were approved

Falconbridge

other corporations.

merger

Bank

J.,

agitations

Morris

Vogt,

town;. Trust Company of Morristown, N. J.,-on Sept.; 13. Mr. Vogt

last;

merger the enlarged Citi¬
National Bank of Wellsville

First

,wa3
elected a'director of The Morris-

of the
zens

member

$315,000
of Aug. 31, under

and

banking work.
Anderson is President of Ventures //'•:
v'V'-''/1'

can

L.'

Schenck:

stock

•.?.?

Edward

com¬

with the Citizens
National Bank of Wellsville, N. Y.,
mon

Plans

New York

Bank¬

?v'';???

N. Y., with capi¬

$28,000
and

stock

University

The First National City Bank of

Jr.,

Essex

the effective date

par

industrial, government and bank¬ had a
capital stock of $360,000,
ing
organizations,
as
well
as in
14,400 shares of common stock,
teacher and research specialist in
(par $25 each); surplus of $360,the field of banking. Dr. Willis
000 and, undivided profits of not
joined the Chase National Bank less than
$92,000* The quarters
of New York as Research Associ¬
of the University Bank have be-,
ate in 1942, and became Consult¬
come a branch of the Wellsville
ing Economist of the successor bank.
'
Chase Manhattan Bank.
'v>;':'s|s■
$
«s

Money Is Sound: Spahr

Recalling the obsessions of the 1920's as to the virtues of a
stable price index, noted monetary economist recounts eco¬
nomic functions of price changes. Disagrees that redeemable
gold standard belongs to Victorian age, and that currencies
should be manipulated to attain stable, or
rising prices.

$8,250,000, divided into
The notion that prices should
330,000 shares of common stock,
$25 per share; surplus of $8,- fall as efficiency in production in250,000 and undivided profits of creases seems practically dead in
not less than $2,787,2C0.
our
country.
Currently popular

Banking,

Rutgers University.

has

been
appointed
Economist of Savings Banks Trust
Company of New York effective

•

Newark

Co.

ing

Stable Price Index No Assurance /

;

Essex

the merger the latter had capital
stock

under the charter and title of the

CAPITALIZATIONS

branches of

Newark

Banking Co. on Sept. 4. The ac¬
tion taken by the stockholders of
both banking institutions was re¬
ferred to in our Aug. 30 issue,
page 886. The merger was effected

News About Banks
NEW

opened

National

Thursday, September 20,1956

the

ladies

while

meetings.
Reservations

the

gentlemen

are
.

occupied

with

the

business
?

be made with Edgar A. Christian. StroudCompany Inc., Philadelphia, Pa.; John F. McLaughlin, Mc¬
Laughlin Cryan & Co., New York, N. Y.; or Edward H. Welch,
Sincere & Co., Chicago, III.
....

may

Volume

184

Number 5570

The Commercial and Financial Chronicle

(1191)
*

then

Commissioner, United

ist's

not, and

for

the

are

solve critical atomic power cost ^obstacle
; * and
proving industrial, agricultural and basic fundamental science

/■:

would

power

vital

most

one

plutonium in view of its

/•/ ' /•'

•-

•

...

;-'w

t>-

■

delivering

must

work

temperatures

consider the numbers.

speaking,

•

i»>ubc
operate
peratures/and the

one

the

con-

such

tem¬

chemist's

of isotopes. Points

usage

out

isotopes have made huge savings

industrial processing and -other costs, and cheaper atomic
ppwer is greatlydependent
upon the. chemical fraternity*

'
,

engineers

the

earth's

great deal. Also,
interested in the
a

information, but the

the

and

whole

ever,

field is

that

sweep of
great, how-'

true

that

great

areas exist where simply
notning
least in principal part, is known. For,
example, the prob¬
centers' nh the r chemical i reactions lems of the
solubilities of metals

power,, at

year

amounts to 1 gram

of uranium-235
occur
at
such
elevated
plutonium-239 being fissioned. which
Vv/</ '■ J:), • /// / /
Therefore, for the ^present con¬ temperatures.
;/
sumption of electric power in this
In. most applications of chemZ
country, which is about 70 million is it an; tne modern technological
kilowatt years, if this were all world, the backlog of informal
atomic power, the fission of about tion available on performance at
70,000 kilograms of uranium-235 ordinary temperatures is adequate
or plutonium-239
annually would for the preliminary estimates of

salts

these

elevated

tem¬

peratures, of the solubilities of
gases in metals, and of gases in
salts, the problems of the rates of

involved

crust have done

chemical engineer's role in atomic

Roughly

kilowatt' for

heated

been mapped. In
particular, the
geochemdsts in their studies of the

in / order

terials of which the reactors

atomic power., Let

elements

' * *

that
a
development of jet engines as well
thermodynamic efficiency as several other
groups in industry
As a result, the ma¬
have contributed sizable amounts

weapons-stockpile
to
such
an
extent that one would never need
us

atomic
elevated

proper

it for

reactions

/ Reactors

ex¬

plutonium made by atomic power
piles could
be* taken
into
the

burn

mixture

temperatures
between
500
and
1,000 degrees centigrade or above.
It is true, of
course, that isolated
portions of this great field have

Information Needed

tremely poisonous characteristics.
VtOne might - envisage that the

J: Backlog of Basic Chemical

who

how to handle

should

how to

handle pluhigh priority matter
development
of
atomic

the

chemists

power." ';;

this

chemist

working

the chem-r

atomic

will have to tell

materials, and isotopes i
being seriously delayed because ;;
of a lack of
gifted help. Dr. Libby lists such problems as: ;
developing homogeneous reactors, utilization <of the product< A
plutonium, making uranium tetrafluoride and/or hexafluoride;
>
backlog of basic chemical information at elevated tempera-//*

.^.

role

become

power, source

problems, where solutions

powpr.

ment we-do

States Atomic Energy Commission

assistance in atomic

>sary

value?

touiurn

case,

An urgent plea is made by AEC Commissioner Libby to the
chemists in industry and universities to render
critically neces-

its

Obviously

nearly

By DR. WILLARD F. LIBBY* /

zero, unless we knew .how
to burn it for power. At the mo¬

The Urgent Role of Chemists
In Developing Atomic
Energy

19
>

chemical

reactions

proceeding

these temperatures, of the relative

densities,

the

lattice structures,
i
and the other physical properties
'/J//,/ able job remains for the chemist
be involved/ with the production the important reactions which will of the various
to do in the methods of manufac¬
Source Materials.
phases of almost
of be involved and the preliminary any * given, compound
From the time the uranium
turing plutonium: fuel elements of / about ; .30,000 < kilograms
at;; these
ore
plutonium-239 as a by-product. It selection of the materials of con- temperatures—nearly all of these
and
processing them after the
is mined, converted to U308 or to
is completely obvious, therefore, s+r,,ctinn and the procedures to be are without
irraditions
diuranate in the mill, refined to
any general delineaare//completed. Zf All
that if atomic power is successful utilized in a project. This is not tions.
Jiigh purity uranium trioxTde ~hy^ banner of alloys must be tested,
V?7*?/.'>■
and it uses uranium of modest true in atomic
and
power, plants for
drofluorinated
;
J
bn^ various devices for the pre
Urges All Chemists
/
enormous
quantities the simple reason that there is no
vention of the escape of plutonium enrichment,
to ; uranium
We urge that chemists through¬
in the case of accidents incorpo¬ of plutonium will be generated. adequate backlog of basic chem¬
tetrafluoride
out the country join in a broad
rated/ The possibility of utilizing This may well exceed the market ical information at elevated tem-r
and
reduced
program on the investigation of
in the weapons stockpile require¬
plutonium in atomic power piles
peratures-. This is despite the ex¬ the
to
uranium
chemistry of high tempera¬
certainly exists/The necessity of ments, particularly if our hopes cellent work done in recent years tures
metal,
to
be
systems on an unclassified
doing so is not so obvious. Let us that the peace will continue in¬ at Oak Ridge and other labora¬
placed in a re¬
basis; the program to be pursued
tories.
•
^
definitely are justified.
-

actor

ther

consider

fluorm-

ated to

urani¬

placed
sion

for

moment

Uses of the atom.

gaseous

this

and

thereby illustrate how vital is the
chemist'sV role
in
the
Peaceful

hexaflour-

i d

fur¬

The

•

the

highly

diffu¬

Nautilus

tonium.

plant for

enriched

result

operates

uranium

makes very

and

volved

This

elements

fuel

irradiated

the

for

and

Taken

some

our

sep-

business,
approaches

quite

whole

all

uranium

unreacted

arated.

larger chemical occu-

pations in magnitude./,

.;f

taining loss than >20% of the
isotope 235 on the average. (The
P°wer bilateral-> Agreements for
Cooperation stipulate that the
uranium-235 . furnished , by the

projects
now
under
way, t or
definitely
planned, production by the free
Upon

should

world

completion

of 30,-

excess

000 tons of U,Oh per year.

production

ore

Today

rate of nearly

and is ex6 million
Com.
mission has asked industry to get
into
the- business
of - making
reach

The

tons.

uranium
uranium

Energy

tetrafluoride

hexafluoride.

deliveries

for

Atomic

™

seem

indeed

small

would

operation,» as
for a heavy

chemical. However, we are speak-

ing here of products of
purity-pharmaceutical
at

high

very

standards

thevery least.
_

;///■'

Industry*

response

to tins

re-

quest has,been gratifying. At the
present time some 32 firms are

actively interested and we antici¬
pate perhaps as many as a dozen
proposals.
'/,>
.
T

11
•

•

There

radiated

are

thorium

blankets

for

that

plutonium

toxicity can be used
conveniently.
A very
address

Dr.

Caiifcmia Sect'-n*he
ical

Society,

Berkeley,

and

not

under

distant

future

by solving

some

Continued

given

The

securities.

circumstances

of these securities for sale

any

solicitation of

construed

9o^mu,pei
an?-++?
b"raed' or as
a;7^00 grams. It is even possible
£a* s0™e. rea£tors will produce
™'e J **10*?™* matenal than
^?
power
piles which do not use
^

aIL"

highly enriched uranium

The Chemist Must Tell Us

will

Libby

•

.Now, at the moment, the only
for

use

plutonium

known

offer

buy

developed

that the problem of what to do
P°wer was segregated from weapUse.

ncan

Calif.

the
Chem-

page

offering

any

■rf

.::

' I

r
-•

SCRIPTO, INC.

U u..

...

:.1

V '

■

(A Georgia Corporation)

/':■■■///■

...
.

Class A Common Stock
/ •/

(50^ Par Value)

■

./ /

;/ /// Price $7.00

Share*"

per

■•1.

*40,000

shares out

certain officers and

total

the

number

being offered

employees of the Company at
.

are being offered
to
price of $6,675 per share.

Copies of the Prospectus
the several underwriters

V":

1
,

{'•'V:

■*''

be obtained in

may

,;'v'

are

■

any

State only from such of

registered dealers in securities in such State.

7/'IK

■:•?.

"7 ».;./.*•/.'

'Si')/.;'

■'

•'-//_.•'•■•

••

■

■:.)

•"
': j».

Johnson, Lane, Space & Co., Inc.
Merrill Lynch, Pierce, Fenner & Beane- vThe Robinson-Husnplwcy Company,
H. M.

Byllesby and Company

;

Atwill and Company, Inc.

Gregory & Sons

Company

Incorporated

/ (Incorporated)

R. S. Dickson &

"i t7

Inc.

■■■

Rauscher, Pierce & Co., Inc.

Chace, Whiteside, West & Winslow

;

Grimm & Co.
•'

Incorporated -j

-vTi"

Saunders, Stiver & Co. Scott, Horner & Mason, Inc. Jack M. Bass & Company

No country has
the technology of

weapons.

the Plutonium still remains,
Suppose, for example, that atomic

before

very

September 18, 1956

its

•

its

pay

of the

■

fuel

not

360,000 Shares"

great

deal of plutonium will be made,

consider•

the

offering is made only by the Prospectus.

NEW ISSUE

^e that some reactors

Ir-

with

♦An

likely to result from

are

too

with

must

amount'to and it is not at all

obvious

years

that

Clark, Landstreet & Kirkpatrick, Inc.

Alester G. Furman Co., Inc.

Howard, Weil, Labouisse, Friedrichs and Company

J. H. Hilsman & Co., Inc.

uranium-233

fects, especially at high burn-ups,i
may

atomic

™ 1 yas 800 grams

yet

other tasks also.

processed

for

in¬

of such

£Tt
nf3r w "Ce. £?'
°
uranium~235

burning plutonium. It may seem
that the atomic weapons business
90uld take up the plutpnium. This
and
" plutonium
fuel
elements i® *be course the British Atomic
inust be developed and their procAuthority has taken in
essing mastered.
We understand i^heir reactors at Calder Hall and
from our knowledge gained from the credit jgiven for the plutonium
atomic weapons how to make plu- Pr°duced is such that the electric
Ionium metal parts, but it is not P°wer from the reactor is not too
so
clear what the irradiation ef-; expensive.
It is clear, however,
v.

design

atomic

Atomic Power

way,

inn
^ake8.51°j) grams:of plutonium.

To many
day may

per

formulas of the compounds which

problems

an atom of r pluJ?
/ °r every vUraatom fissioned in most

J5£5TrI1-Ee?1?wS

Proposals

1, 1956.

tons

the

one-half of

totaling

of Oct.

chemists

apy value it is
the chemist learn

Tesearch and devel^
^Pment test reactors./ Something

5,000 tons
per year of
U.-.0* equivalent of
these two salts (or on an interim
basis, uranium trioxide) are desired

period of

concerJ"
+tra*lon exfe.Pt for limited amounts

and/or

thought in mind

3 million tons per year

pected ^to

over

possible to predict with

reliability the relative vola¬
tilities, the rmody namic free
energies, or even the molecular

United-^;- f . Atomic ■ Energy Commission

the

for

States alone is at

plu¬

any

economic power being generated
indefinitely by the ? burning of
uranium-235 alone.
Some dividends must be obtained and the
one normally envisaged
is plutonium-239, which": in itself is
fissionable and therefore burnable
as a fuel.. Most power pile designs operate with uranium con-

must finally be dissolved and the
fission products and pluthonium

that

•-

•

point, too,

this

beyond

order

using

little plu¬

continues

necessary that
how to
solve

(Plutonium is manufac¬
tured
enrichment,
by
neutrons
interacting
Dr. Wiliard F. Libby
the
with
chemist
ordinary uranium-238.)
is
busily at
However, the cost of uranium-235
work on atomic energy. His work is such that one cannot imagine
;

case.

reactor

It is not

tonium

•

Therefore,
the/problem remains with us in

either

activities
Then

for

reactors

J. W. Tindall & Company
Norris &

Cabell

; '

7/1 J ;
-

McCarley & Company, Inc.

Wyatt, Neal & Waggoner

Hirshberg, Inc."-""

G. H. Crawford Co., Inc.
•

Pierce, Carrison, Wulbern, Inc.

French & Crawford, Inc;

Vamedoe, Chisholm & Co.

Vivian M. Manning

Roman and Johnson

Incorporated

••'•••/

Hopkins & Co., Inc.

as being a Peaceful

would

have to

say

£at PlutOniUth generated from

the

Interstate Securities Corporation

was

not

atomic weapons.

used

What would

Hoffman-Walker

Company

W. R. Luttrell

Tillman-Whitakar Co., Inc.

ChronicleThursday, September 20,1956

The Commercial and Financial

(1192)
level of two years ago, largely

Connecticut Brevities

follows

growing public reali¬
its recent earnings
expansion and potentialities—

THE MARKET... AND YOU
„

and

stringency,

post-

v v"-

new

P^^.?'0ii^e^d;*•••>• <K ?e^ ^ul^il^0uth-^e^ti.le bldUjt.ry'
^ricesi
out of hand,
on/the. basis of "expanding
f

United Aircraft Corporation has

registered with the Securities and
branch in Norwichtown. Exchange Commission an issue of

Company has started construction

roughly kicked
during the past week,
With the single exception of
Friday, the occasion of the
first rally—finally—including
the rails along with the steels
r—after seven.; days .of decline,
the kicking
s^Vaownw^^?rea$»:
quite

around

rumors

Maine election worries, prices
were

Under the influence of the

Middle East crisis, continued
credit

addition

The Connecticut Bank and Trust

forthcoming full-length com- The new branch bank will bring not more than 330,915 shares of
■
pany "profile" to appear in a to 24 the number of offices oper- convertible preference stock, $100
2-for-l split shares. ThiST pjeaciing periodical. Under its ated by Connecticut Bank, one of par, which will be offered to comwhich is in the center of Norwich, mon stockholders of record Sept.
resents a price only 7*/2 times new set_up
during the
about two
miles from the pro- 17 on a one-for-16 basis. .Pro¬
its last year's earnings, and first.hal{ shoWed earnings of
posed new* "branch.
ceeds will be-used-to retire $12.21
8 '/a times average earnings $2.67 per share after 23 cents
i"
^million of' short-term notes, for
over the past four years; and
The
Southern' New
England working capital, and for construcput aside for inventory; re-,
Company • has
made tion of . additional facilities, ina 25% discount from its net- serve. Thus the current price Telephone
to
the
Connecticut eluding proposed construction of a
quick liquidating value.
of 26 may well represent only application
Public' Utilities Commission"-for new engine plant on a,7,000-acre
^v•:r five times the full year's authority : to- establish an -em- tract recently purchased in Palm
•
Interestinglyvan important
coupled With' ployees' stock purchase plan. The ^eac" County, Flar, »;
advisory organization which management-s intentions for company ^requests/authority to
: **" * ;-X *
aside 500,000 shares of its common^
' The annual report of North &
has been consistently i beans
continued expansion via one
stock, $25 par, for sale through a Judd Manufacturing Company

;

STREETE

By WALLACE
"

zation

sitibn. plus continuihg'seafcli
.
\ K

payroll deduction plan. - All em- shows that the.company's earnings
ployees would be offered an op- lor the fiscal year ended June 30,'
port Unit y.. to 5; purchase * up. .to iM'j. I
increased, by .11over the
maximum number" 6f vShares ref 'Preyioiis year ta. $667,396 or $5^56
la ted directly.to their basic salary, a common share. The increase was

>^Tiih^fd£& Change^? S7:
bets; as ihchendcals
+u
%
; incomes.. rectifying its pre- hydrogen, wpuld fully justify: Payments,*-wouldrhe-deductedfin^omeT>art^ue"t6;theacquisifion
In; addition: to-tha above-. gnt upwieldy inventory condiisfue.s current strength. •weekly and: at the end of each in April of 1955 of the Wilcox

£ited speciflc stimulr to- the;; tion;
year of the plan's existence em- Crittenden Division, which proseemingly-.:::J
<.■*
...
Dow—Still Up Front//g ployees >.would purchase u stock duces I marine ' hardware, boat
growing general worry that
Turning quite decisively
One issue still leading the subStiit^^for^aUd ^paid- for-^at^equipment;.heavy/sheR hardwauei"
84% of the then market price. % f and gray iron castings .and forghow it-may. after all be "time weak have been some of the piue Chip "Hit Parade,", both
* C
";
ings. Expenditures: for mew plant
for a change" t market - wise Blue Chip glamor growth is- market- wise and comnieht Pitney -Bo wes, Inc. has recently by
the. Company ♦amounted.. to
kfter the long bull era.;
sues, including some of the wise, Oven after .its stuperi- announced plans to establish an $360,000 in the 1956 fiscal year
*
*
*
\
chemicals, and with a new- dous price performances, is employees' • stock purchase plan. fn<J fu^er expansion of facilities
The company has filed a registra- ls
contemplated for the coming
But the bulls have by no low posting by that leader in p0w.
Continuous vast ex- tion statement with the Securities year'
means
been
routed
either progressive
corporate man- penditures for research over and Exchange Commission cover¬
bearish Tanks is the

;

agement, Minnesota Mining ^e years evidently have paid
and Manufacturing. We are off^ b0th absolutely and >in
thus reminded that even for relation to its ' competitors.
the .holder of this higher- Calculated on a cash-flow

argumentative^ or portfoliowise,

high

Continuing

em-

undiminished cani-

nlovmeht

tale™pa^ion plan"

generally

echelon market category, the earnings basis, growth over
level of security loa^'perk- price-road is not always one- the
past decade has been
ing-up auto sales, and the way, and long-term patience 527% for Dow, 295% for Duvields

dividend

liberal

low

ever-present inflation poten¬
tial, are still relied on in many

required.
New

quarters as long-term market
bolsterers. And then the

den reversal of the

restrictive credit
;

v.:

tne

Newly

sud¬

policy

..ones

.nous-

trials about

half-way between

their' high

521

registered

April 6 and 462 low on Jan.
23, imnortant break-throughsbv

individual

the

issues

both

hTyrsides' cbn-

low and

vear
year-, within
the ~ week,- -is
*
National'T Distillers. >-in

(as

vaiintpH

Middle
of

these

issues,

« «q

•

resting at or hear their
year's lows, General Public
.....

Utilities has
istered

concurrently

a new

reg-

share, for .1957 at

per

1Qro

*0 oe.

have

also

?T letIel

qu^e moderate for this

apparently

genuine

continued

down-

sues
zone

tan's

may now

of these is-

be in

is indicated bv

decline

'•

expressed

; -

this

of ■ The";,aTe presented
"ChZ0niCle'" the author, only.]
those

its

number
stock,

Combined Industries

common

Common Stock Offered

Harold D. Levine, of New York
Hardware
Corpora- City,-is offering publicly 300,000
applied to the New York shares of common stock of CornStock Exchange for listing of: its bined Industries, Inc. at $1 per
624,317 outstanding shares of com- share as a speculation.
•.
mon stock, $2.80 par value.
The
Incorporated' in Delaware oil
company
is one of the largest July 24, 1956; Combined Indus*
manufacturers of general hard- tries, Inc. acquired all of the outware products and builders hardstanding stock of a New * York
ware
supplies, largely marketed corporation of the same name, or*
under the names of Corbin, Russ- ganized on July 1, 1951, which
win, Sesamee and Unit. The main manufactures wrought iron furni*
plant is at New Britain, Conn., and ture and all types of tubular steel
other* plants are located at Hor- and' wire products,,;' The corporanell, N. Y.; Clarksdale, Miss.; and tion's products arefsold through
Belleville, Ontario. *
' *|^'«itnail order, chain-fe ahd variety
American

tion has

-a-";; ;;"• *. -

-/•

.stores. z::

:!=

Emhart
has

June

recently announced acquisi¬
of
another
company,' Sky-

tion

worker

Thomas Spencer Opens

Corporation,

M i 1 f

o r

its

Through

securities

through

exchange of stock for

Giving effectt.tu-the present fi'^fncm8» there wiU be ^400,000
shares of common stock outstandr

accomplished

17,500 shares of Emhart common:
Sky worker

produces

hydraulic

Concord Securities %

Iron"

new

from

its former

it has within

the

-.'Cfe

business.

John Stanton Opens

GREAT
Stanton

NECK,

N. Y."

year

istered while the market

was

Concord

been

new

plant at San Diego,4Calif., at

£51?

about

year,,,

Corp.: has
170

R®snick,^ Vice-

Ejes Sr

m.'

♦

eis?' Secretary. Mn-4Resj
*mck' was formerly an officer , of

development'

nroduction of euided
production oi guided missiles

•?£

com-

will

offices

with

million. The' Convair-Astronautics

plant, which is scheduled for

Securities

formed

Broadway, New York City, to en-

estimated overall cost of about $40

missiles..^Gito:altar.

Plume & Atwood Manufacturing

Company has

Financial Corporation, v:

purchased the

With Draper, Sears

man¬

Co.

engaging in

ufacturing and sales rights of cer-"

-v/

BOSTON,, Mass. — George A.
Kenney ; has
become 'aconnected

products from Wasley Prod¬

ucts,

John

securi'

ties" buWn^s^s^^from^officps0^1^

Inc., Plainville,

lines

volved

Conn.

products which

were

The
in¬

in the decorative and

utility metal products fields.

(Special to The Financial Chronicle)

•.

with

Draper, Sears & Co., 50 Con¬

Street, members of the New

gress

York and Boston Stock Exchanges.

Schenck Avenue under the firm
name of John Stantoq Company,

name,

past

Corporation

construction 'of

Formed in New Yo; k

;

•

has begun*

Dynamics

;

con-

General

1'''

tain

porarily faded Blue Chip

profits • amounted to

2Z*n'Kr7a

was

offices

Also in contrast to the tern-

teresting

Net* sales; for
$532,-

reported.

the latest fiscal year totaled

acquisition

and
ana

Thomas D. Soencer has opened
at 527 Lexington Avenue,
New ; York City, to engage in a

30^ 1952 through 1956, prof7

were

Conn., which will be operated
as
a: subsidiary of Emhart. -The

•i;

A Multi-Diversifier Comes

each>^of the, ,y6ars - ended).

Manufacturing Company; _; ^

largelydevoted

-c\ v

Alvin

Richelson to Open
CHATTANOOGA, Tenn.-i-Alvin

.,.!^aJ^^BhHAS.W.SCIUWTON&Ca:A
New York Stoci

^i^elson -will shortly opeh*offi-

" a sec^lUe^us"
,

Pair»e. Webber Branch :y.
SANTA MONICA, Calif—Paine,

Webber,

Jackson

Curtis" has

buving still on the skids Wednesday, opened a branch office at '1220
Manhat- representing a better than Fifth'Street^ under the direction
for
its
trebling of its lowly 7Vz- of Raymond G. Brewer.

pletion

added both a substantial popjoining the new-low's ular-priced underwear and
squad. Also in the fresh-bot- a cowboy boot and shoe busttorn price group is the related ness to its erstwhile anthraapparel group, including Clu- cite operations. Its new stock
ett Pea body and Manhattan market
high at above-26, regsome

.views

•

growth

others

That

•;

*
fThe

uQ ;? at^.tJD, article do not-necessarily/at any
-iwhlch Would make the ■pres^tirne':coineide' with; those of the

growth stocks, is another in-

ward, with Stevens; Burlington, United Merchants among

Shirt.

"diversifier,"
Textiles, w i t h continued the former Philadelphia and
price-inventory difficulties Reading Coal and Iron Co.
still rampant in the industry,; Divested' of the
"Coal and
'

;;

?ated by the management at tivity crucial.

high.^

Sshw^ of

with an aggregate offering
price to employees of $728,000.
par,

are

South, Public S°rvice

Indiana, and Ohio Edison,

; the

ccwnpanies*<f 1V^ ,of; tAiem
carriers) are st'll selling.

slx

unspecified

equipment for carrying workers
^
loL
?■+ COa
aloft .for maintenance and
Jro™,$'6.911,n 1955: ^et pro lt above their 1955 highs. So in; StrUction work.
for.the fullyear 1956 is esti- this market area alsois.selec.r-'/
;A;:/

^00 dlv
^

I^es striking the. realization

Jortfolio ^itA- 'e"V«eWl^ reaCh/d
while

may

...

be finally paymg-off; that, despite the carriers misWith its new chemical/divi- erablerinteryening market

<h9 7c

apparently offsetting their

justified.,;;

seem

aZJ^L Gas and
as m.$2
American statements Electric)

—

per

•;tHe^:);•;r%„-uS*

category,-higher
competing interest rates and
some
disappointing interim
statements

well be

nrofits^h^nel

the -former

ing.
But
number of

earnings

investor's dog-house»during ^ The 'rally in the'railroad
several years of disappointing sector of last .Friday, when
results from a bold diversifi- the carriers enjoyed their best
°S^Mortf
upt"rn f""5 last November.

have included the utilities in

miinh

tinue to be touched off. These

earnines

calculated

js'isterteg a new-highweek. the nr^ii present price • of 71
for *is: the
within
the
tuctifiad

W',"

'tti

uuw

cash-flow

the

■4,.
vv.ifi

bide and 181 % for Allied. If

Chip Club

Candidate

over¬

Car-

Union

for

candidate for Blue currently — be accepted as a
Reserve's Chip ranking, and thus reg- correct basis for calculation,

hanging possibility of

cited.

243%

Pont,

Blue

ing

''"J: New Haven

New York

—

Exchange

•

,•>

REctor. 2-9377

Hartford—jAckson 7-2669
'

Teletype NH 194

;

%
:

Volume*"184 ^-Number 5570

The Commercial and Financial Chronicle

(1193)

dren

Public

Developing

Utility Securities

Child's Interest

healthy,

•

Montana-Dakota

240

;

£
>

communities

Utilities

supplies
Montana, North

electricity

The

and

South

gas

Dakota,

and

Wyoming, the population

served being about 332,000. The area is
largely devoted to agriculture and livestock
raising, copper and
zinc refining and mining, and
development of oil find gas.
Revenues are 56% from
gas, 43% from electricity and l%%

brains.

steam.

Residential

and

rural

sales

contribute

44%

Quotes Thomas J. Watson observation:

machines is worth

ray

•'

child has is worth

every

real

any

producing :

V; communities

gas

are

between Minot and Williston.

developed in this

As additional reserves

further extension of the

area,

new

system eastward is contemplated.

There has been considerable market interest from
time to time
in Montana-Dakota Utilities because of the
company's large land

■

„

•

developed,

nology,

that

date

there

about

were

7..f wells in the Cedar Creek Anticline Field.

100

from fields

had

;

Pipeline.

-•

These monthly oil

monthly

over

-v

the Cedar Creek

terest

ful

represent

tana

from

connecting with crude lines
west

refining

centers.

Fort

near

The

Butte

pipe

line

provides

outlet for crude oil produced in the area, which

limited market.

very

serve

his

lows; long-term debt 52%, preferred stock
construction approximate $9

the

Every

While the balance available for

of 7% last year,

earnings

the

cause

common

(the

same

common

stock

exchange for the assets of Montana-Wyoming Gas
;>S Company. The property had formerly been leased.
/'A:

28-23%) and

year

•

for

•

the

coveries

been

pays

ended

reflecting

the

selling recently

$1 to yield 4%.

months

doubtless
1

has

stock

around

Based

Pipe

possibility

some

the
a

oil

Earnings

$23

$1.46*

1954

1.46

1953

0.95

1952

0.94

—

28%-17%

tion,

-22

27%-11 %

0.80

13%-10%

1.25

0.80

14%-10

business

1948

""11

1.18

0.80

13%-10

ested in

1947

1.39

0.70

15%-11%

1.27

0.60

0.40

0.45

and

•♦Pro

forma

Pine Line

show

full

year's

Company, acquired

12:

—

Dec.

operation

31,

1955.

see

Montana-Wyoming

lawn

has

far

and

Switzerland

heads they

carry

tele-

also tour Italy

before

returning

better

we
have, children
up
to
their
own
possibilities.
;
::

States,
/

B. Gale & Co.
■

Effective Sept. 30 the firm of
Gale, Bishop & Co., 115 Broadway,
New

York

City, members of the

New

York

Stock

Exchange,

will

changed to A. B. Gale & Co.
,,

September 20, 1956

-VI-

-•

4% Convertible Subordinated Debentures
Due 1981
Dated October

are

—

Due October 1, 1981

Holders of the

Company's outstanding Common Stock are being
rights to subscribe at 100% for the above Debentures at the
rate of $100
principal amount of Debentures for each 23 shares of Com¬
mon Stock held of record on
September 19,1956. Subscription Warrants
will expire at 3:30 P.M., Eastern Daylight Time, on October 3, 1956.
The several Underwriters have

agreed, subject to certain conditions,
purchase any unsubscribed Debentures and, both during and follow¬
ing the subscription period, may offer Debentures as set forth in
the Prospectus.
]■'''■/ v'.v' '
7-:/;.:■
to

"switch¬

millions

Desire

1, 1956

offered

automati¬

such

Industry

Hope
the

—

plugs.

are

Copies of the Prospectus

may

writers only in Slates in

the

Instinct

which such underwriters

be obtained from

of the several under¬

any

are

dealers in securities and in which the Prospectus may

—

qualified to act

legally be distributed.

Common

—

Love.

most

point

The First Boston Corporation

These last

White, Weld & Co.

job

But from

view,

Hornblower & Weeks

will

especially

Stroud &

who

can

Drexel & Co.

Goldman, Sachs & Co,

Company

Hemphill, Noyes & Co.
Dominick & Dominick

Dean Witter & Co.

Moore, Leonard & Lynch

Singer, Deane & Scribner

Incorporated

give

Bosworth, Sullivan & Company, Inc.
Walston & Co., Inc.

inter¬

Kay, Richards & Co.

Arthurs, Lestrange & Co.

Cunningham, Schmertz & Co., Inc.

getting people with keen

into the future.

Lehman Brothers

Carl M. Loeb, Rhoades & Co.

best salaries

perhaps

opportunities.
I

Smith, Barney & Co.

Eastman Dillon, Union Securities & Co.

important for

Imagination

imagination,

-11%
-

the

entered

These

switchboards

and

0.87%

Gas

school graduates the

1.55

France, they will

Allegheny Ludlum Steel

Industry, Common Sense, Inspira¬

0.73

has

the good of mankind.

1949

who

many

with

are

Juv.—-

family. Having visited the Scandinavian countries, British Isles,
the Lowlands, Germany and

ISSUE

spiration—Imagination—Religious

___—

& Co., Los Angeles, is on an extended tour of Europe with his

every

dis-

-19

miles

switch-

European Tour

;

Sense—Expediency—Reason—In¬

1950

1945

are

Memory

1951

1946

which

business

0.90

several

instinct

V Oscar F. Kraft of Oscar F. Kraft

;

million

15.7,

Approx. Range

0.90

that

powers

$16,377,000

ma¬

half

0.90

Oscar Kraft

a.i.

once

32%-24

$1.00

until

There

chief

Faith

Dividends

great importance of

ago,

-Common Stock Record

(Millions)

;

1955*___:

them

NEW

circular impressions on
long-playing phonograph record.

three

Dec. 31

offers to buy any of these securities.
The offering is made only by the Prospectus.

any odor, a telephone
immediately sent to

following

this

Year

Revenues

are

animals,

Children should be taught that
,

part of the brain similar to

boards"

Line

earnings of $1.59

extensive

the

wake

in their

small

There

the company's large acreage.

Ended

by the equivalent of
wires to every part of

brain.

The

June, the price-earnings ratio is

precious

cally directed to one of these
switchboards, which in turn makes
a
permanent
impression
upon

be-

(range

that

the

one

switchboards.

message ;
our

gain

issued

able

new

while

Machines

brain

child

| thing, smell

new

the previous year)

of the additional 241,577 shares of

The

common

stock showed

shown

smelling

their.- mates

will

body. Whenever, we touch
anything, see anything, hear any-

fol-

bank loan.

first

Faith, Hope, and Love.

eyesight than

equivalent of three pounds of

mental

about in line with the increase |n revenues, share

held to $1.46

were

and

school this month has in his head

million, which will be provided partly

with internal funds and partly through

•

.18%,

Nineteen fifty-six capital requirements for

robin

Systems

ac-

the

were

will

switchboard entitled religion,
with
its
sub-switchboards
of

Brains Compared With Telephone

the Cedar Creek Anticline.
1955

to their edu-

Children

: interested M

child has is worth $10 million!"

telephone

stock equity 30%;

the

weeks

"If

worth

eastern

children

board in the heads of dogs enables to the Umted
them to find their way home and
/
hunt out criminals! and that the ' To Be A.

one

devoted

few

connected

Montana, particularly

me,

celerated activity in exploration and production of oil
throughout
The company's capital ratios at the end of

100%

wonder¬

computers,

Mid-

means

the

every

press

Business

dollars,

hitherto has had

Completion of this project

the;

death

said

market

which

space

national

southward,

Laramie which

they

the attention whi&h is

see

chines

northeastern

the

human brain. In fact, Mr. Thomas
J. Watson, late President of Inter¬

substantial increase

Montana

line

little

Pipe Line Company's

oil

add

results.

have

away;

only

seems

aroused

electronic

were moved

crude

450-mile

given

producing

the completion late in 1955 of Butte

was

than

children

the

...

machine

cross

Of particular importance to the
company and to eastern Mon•

them has in his head. It makes

Anticline in which the
company

runs

in the first quarter.

runs

because

...

interest, to mid-continent terminals via the 452-mile Butte

real

our

sense to begin education
phone system with more private
R
BishoD
will
withdraw
by teaching a child about his own hnes than the telephone systems
*
t.
brain, with which he will learn
our largest cities. Getting chil- from partnership in the firm,
everything in the years to follow.
As so many children are starti
ing their first formal education
this month, I urge that their in¬
This advertisement is neither an offer to sell nor a solicitation of

Reports indicated that

458,169 bbls. of oil in April and 506,610 bbls. in May

;

correctly

the

have

common

According to the Company's interim report for June 30, 1956,
exploration and development has continued at a steady rate in
Montana.

these

lines

When

find

Tech¬

heard

never

Yet

moths

other

brain, he

Institute

had

could

always

praised. After 12 years
the Gloucester
public
four years in the

psychology.

eastern

est

cational

and

Massachusetts

the drilling of additional wells in the known
productive
Shell earlier this year was operating 12
drilling rigs and
two completion rigs on the Cedar Creek
Anticline, in tne vicinity
of or on company owned acreage.
'

•

schools,

areas.

spent

..well
v

the

own

prob¬
yet been

hundreds

possesses

tremendously interested in
brains, and that this inter-

their

hand, I believe
;
:";w
;7:'7.
if he did not
use
this long word, but merely
began in the early grades to teach
be

All

come

Roger W. Babson

would

Activity in the Cedar Creek Anticline, where the company's
principal acreage is located, has included step-out
drilling for the
exploration and extension of the fields now being

that

probably be
called "crazy."
On

imagina¬

solve

never

see

children
learn

years

Brains Work

turn makes the permanent record.
1 believe that children could be¬

shoul d; b e
taught
psy¬
chology would

have
to

and

rea¬

which

first- grade
h i 1d re n

the child about his

holdings in the Williston Basin. Leasehold and
operating-agreement holdings comprise
261,353 acres, including 65,000 acres in
the Baker Field, and 140,000 acres
in. the Bowdoin Field (Mon-r
tana). Commercial oil was discovered in the Williston Basin about
April, 1951, and Montana-Dakota Utilities engaged Shell Oil to
carry on a drilling program in the Baker Field.

cells.

telephone"

are

is ted

with

"private
brain,
automatically transmit
Any ■ school/
messages by the "dial system" to
superintend¬ the
right switchboard,: which in
ed t wh o i n-

•

into the future should be

living cells. Some
pressure-sensing cells; others
seeing, tasting, and smelling

are

human

brain.
orain,

(5) high-average winter consumption.
An important development in the
gas aivision \yas the com-.*
pletion of contracts for the purchase of gas in the Beaver.
Lodge-,
k Tioga area in North Dakota last year. Initial steps in this
develop- '
V ment included the
purchase of a propane-air distribution >'system
at Minot, N. D., construction of 122 miles of
high pressure gas pipe ;
I - line to market natural gas in Minot and other communities, and
the
connecting of the new source of supply to the company's
; existing system. The company expects to add a
large number of
gas heating customers and is also
beginning to service 11 small

child

and

ability

our

goals. I especially appeal for work

dollars."

Our

rather

of thousands of

harnessing

of t h

field .contracts made at favorable prices over a
period of years; (3) \
u$e: of storage reservoirs;
(4) favorable location of

and

solved

one

The

facing
develop

but

self-control,

and

areas,

Each

development

as low or lower than rates prevailing elsewhere in the ;
United States, due to such factors as (1) low cost
company-owned
some years ago; (2) long-term and life-of-the-

How

fact, if I were to. live my life
again, I should devote myself to

vra^?s. are

| * reserves ^acquired

ten million

hobby, it is

the study of the human brain.

"If

prosperous

not

which

can

7 If I have

son,
tion.

dollars, the brain which

electric

£;- revenues, commercial 37%, industrial 13%, and other 6%. Average v
; residential electric use of 2,785 kwh is
slightly above the national ^
f; average. '%
V 7,:';A .ffvy : A77;--V 7 A A''>7.- ■
7
•TV,"
Gas is used universally in the company's area for space-heat- "
ing, water heating and commercial processes; The
company's gas

half million

these thou¬

and

task

lems

on,

•

schools

own brain," from the
early grades
urged by financial advisor Babson, who desires to
encourage all children to become
intensely interested in their

happy>
real

knowledge

"Teach the child about his

and/or

lives.

By ROGER W. BABSON

Montana-Dakota Utilities Company

use

private lines and dor¬
mant switchboards will make for

In Potentialities of His Brain

By OWEN ELY

sands

I believe the

McJunkin, Patton & Co.

great opportunities lie with those

•

who have cultivated this power. '•

Chaplin and Company

Fauset, Steele & Co.

correctly 4 Hulme, Applegate & Humphrey, Inc.

A. E. Masten & Company

Glover & MacGregor,

Inc.

Jenks, Kirkland, Grubbs & Keir

McKelvy & Company

Thomas & Company

The Commercial and
13

Financial Chronicle

Thursday, September 20,1956

...

(1194)

lrn«)

r'M+lnn.oJ

COnnnuea

*i'

IMf

IhA \n(lfl

v*Vff

is able to
times his
capital. This greatly magnifies the
profits that he can make when he
is right on his position and also,
greatly magnifies the losses when
he is wrong.: The possibilities of
profit and loss in the business are
in

shown
that

sends a check to a Reserve Bank

lion of-jTreesury^securities. T
principal factor in recent years
on the other side of the picture
has been purchases by State and
local retirement funds.
Business corporations hold prlncipally
short-term
marketable
Treasury securities, and they hold
them, both as liquid
against their Federal

wide fluctuations
had in prices of

the
have

followed

was

assets - and
income tax

liabilities and other needs for
funds 'that they expect - m-the
future. As regards their purchases

long-term Treasury bonds during
recent years. : For example, there
was
a
decline of some 9 points

Which in the past two years

as a

matter of policy, and, wit/i tl at j have aiready mentioned

exception, to bills, aiarnat-

Another-factor that enters the pic-

ter of practice. This is a pol cy
of the Federal Reserve that has
been subject to consideraoie aebate. There are several reasars
why this policy is being followed.
First, it permits the Federal

^ure -when you are studying the
market closely is the psychology
of inve3t0rs, which sometimes is
at variance with the underlying
tasic factors. ;
^ v~ ^ •

one

Reserve to concentrate its planning 0n providing what it congiders the proper amount of reserves, with the rate established

•g'SJS

10 points.

pattern

term securities primarily 10

influence on the
Treasury market. This was most
hoticeable
when
the
Treasury
have

casion,

thpir dp-

from phaneps in

pnnr(?p

» e^u s e ^ rnrge t

unitedV5
seems

to us that at times in the pa>t

QUidity purposes. If commercial
.. »
they entered the market rather
banks as a whole have a s™aR p When banks as a whole find capriciously. The only occasion
i«„Pd
nnnmarkptflblp savin g s amount of short-term securities,
When oanks as abalances una on which thev enter the market
wnoie are
issued
nonmaiKetapie sa vings
become
restric- that their reserve
wnicn xney enier xne marxei
notes.
It proved impossible for tney may oecome more resiru:
than their reserve reouire- now is in the slight contingency
to
adinst
the rate tive in their lending policies and less tnan
tneir reserve require
market becomes disorthe
ireasury to adjust jne rate
noliev as to investment ments, they may sell short-term *.na* me rnarKei oecomes a^soron
savings notes to the rapid !n ;neiJ
as
Treasury securities
In order to derly.
iniiQritfpe in markef rn+e«
ehnrt. in: longer-term securities, which -treasury securities,
in oraer to
_ ..
.
term securities that occurred after *s what is happening right now.
relieve a shortage of reserve funds ^ . Finally, this Pallcy eliminates
occurred alter
r
i l banks need bauiditv
for the banking system as a all danger of returning to the
more

the

Trea^nrv

between the Treasury
Reserve. • Inves-

the accord

Federal

the

and

the outstand-

and

notes

savings

bp-

and

marketable

tween
iveen

forth

securities

hack

cbifted

inr<!

S^rtCake carrof deposU shiffs
lirsl> 10 iaK^ care .OI aeP"sn biuns

ing amount of savings notes went

iirf
up

down

and

that the
tnat tne

ranidlv
rapidly

down

„nc„ri;

*m in

fnnnwPH hv

mndPrfltP

J*™
easinff

dfelecra us ™athee 3

Commercial banks hold for li- requirements that result, of i°nSer eruers ine market.
short- count of changes in their reserve
cpmritie* nrimarilv

securities

r3nii hVL

siv month*

™rth^r
Xrartpri7ed'hv

bail out the Treasury if the

during the first half of the calendar of past years, except that you ^al£|ts
X thaoublicyear- when the re verse situation is have to take account^ unusual ■ J^^t,
nnfv markefabte Purities true. This situation is changing as factors such as weather condi-

^k^b" ^mit^do noiT^:
ao, on oc-

nf _

fnl

aTthPn
tL S

inrrp^in^v

their Dolicv

and

then
more restrictive noliev recentiv
Finally there has been
the

dSS

letter makes a mistake. Third it

ur?"seSielthat^ee^tandfng

marketable

" **

™nrp

themarket to the maximum
extent possible.- Second, it forces
the Treasury in its financing to

or to

thP nact VMr ha«s

Tn
,hp

„In. estimating circulation and meet the demands of themarket
rather than to rely on the Federal Reserve to adjust its policyto producing , an unduly low rate

maxe xarg^ fxoatt we rely principally on .seapurchases during th^ second a f sonal ^dexes that we have comot the calendar ye^ when their , puted monthly, weekly, and daily,
has income tax liabihties ^creas^
The fluctuations almost invari-

an^mcrease of "es, for exampi^ tney

mnouhted to nearly

credit

receives

collection

according to a time schedule,
while the bank on which the
check is drawn is not debited
until the check is actually collected by the Reserve Bank. Any
delay in the collection of checks,
such as occurs, for example, when
planes are grounded by fog, or
when* the Federal Reserve -is
swamped with checks, as it was
frpm about the middle of June to
the middle of July this year, increases float and reserve balances,

points, by August . 1954,
and there has been, another drop,
11

some

in the Treasury market dur-

New Open Market Policy

;

The bank that entirely to short-term securities, cent developments in the factors

collected items.

AVAAM

for

operates on margin, he
carry a position many

Next I'd like to discuss fluctua¬

|£ing ^s^t^W to^ivcTyou

UVllJJ

ket will rise.

The final item of importance in
In recent years; open market
the money market is float, or un- operations huve been confined sorre practical illustrations of re-

•

Lonif 1 firm

A HO
I1A1U

WAlUil

lllC

111

.'V

V*-

Float Generates Credit

Tieasury ; $6£llXltl6S MaikCt
:*

balances rise.

reserve

creases,

Pait Year's Market

circulation de- cial banks, and the whole mar-

When

reserves.

Tmnt>

jrom yuye

whole, however, these securities
,
nurchased either hv

vicious system of pegging that
had for su^-h a lona time after

A year ago, in July, business
ndi
rapidly, business

wgg

loans had ; risen steadily instead

frce^"estoanavemgeo1
hilf
.

ftn mjii ion

aDaut. ^ UY

Th
,

rat
»

bad risen to 1 /&%, and the Tre&s-

ury was
°* C*S*L
scripfiop $750 million of the ad3%
i
Rumors of an
•
,1? 01 a" a5
c.itioral offering of these bonds

markPt during

_h H

P
tne market during
from xoi^ to offprinc, 100 by the
nearly Tn nfber
ti
f th
V

June; and the price had dropped

^Yoras' all of the factors at this
311
ine lactors al ™1S
words

"avf l(> oe purcnasea eitner oy we iiau iur su^n a lung iime dixei time seemed to converge on put-

from one bank ;to another and
from one Pai"t °f the country to

nonbank investors or by the only World also, the Federrl th- pa„t ting the r]}d decline with theJ 2s
the Re- year War II. During Reserve
marke^ down, and actuserve Banks. Otherwise,
.f
f fundg t th
banking has made limited purchases of droonine below 99 o'nAue 1
customer aemanas ior loans, wen
f
q
hnl
hnrrnwin? bankers' acceptances Thev have a opp ng Delow yy on Aug* L' .
commercial bank consequently system as a wnoie is borrowing Damters acceptances, iney nave
Eariv in Aueust 1955 the Fedlarge
amount
of from the Reserve Banks. If banks said the reason was to show their
, t,
?
? .P
d

second

to meet their

a^ther ;and second to meet
,

„
,
nerind or hor- interest in that narticular n arket
eral Reserve tightened up further
borrow tor a long period or nor- interest in mat pamcuiax n.aricei.
.. cr€dit noliev A deficiency
an unusuaHy large amount,
_
_
x.
L *
^ u
sold quicKiy at ai minimum ios-,.;
bkelv to trv to redncp
'
Theory vs Practice , *
of about $200 million was estabTypes of Securities
and.the amount that any particu- they are likely to try to reduce
Treasury debt-man- "shed in the free reserves of the
Amnnfj
markpfahlp ' «;pciiritip<? lar bank keeps depends upon the their borrowing, tirst, by selling
io turn to .reasury aeDt man
v<itpm
Among
marketable
securities
dPno«;ifqbpid hv the hank short-term securities, until their agement policies, as a matter of "a. King
system, Thp ditjponnt
xne discount
the shortest issues are Treasury tyPe .91 deposits neid by tne bank ..
....
rparhps?
i '
nninf anrl
general brin^iple durin* a bu«=i- rate was raised from 1%% to 2%.
hills
which
threp-month se
seand the amount of loans that the liquidity reacnes a low point, and geneiai prinvipie,_auring a oua
bins, wnicn are tnree mootn
pxnpcts to makp
Whpn dp- then
by selling other securities ness recession the Treasury should
D111 rate movpd un to divermoved up to 17/Q%
i/8 fo.
cunties
at
issuance.
The
next oank expects to make, wnen de
n
f
.
.
.
Ppn cpp,,rifips to commercial Then we got one of our
shortest
certificates
which posits
shift from one bank to or occasionally by reducing loans, ^eii securities to commercial
• th_ long-tprm markpt
snortest
are
certmcaies,
wnicn
dpOf course
sometimes they are banks, and during a boom period Pen-ies ln tne long term market,
have an original maturity of up anotner, tne bank tnat loses oe
,
w tho
the Treasnrv should have a snr- Long-term bonds at that-time apto
The next are ureas
course, also loses the urged to do so by the Reserve tne ireasury snoum nave a sur,
affppfpd moY
year
ine next are Treas^P°sltsM fOf
*
amount of
halancps ^Bank.
1
"
plus which it should use to reduce parenuy naa been anectea more
ury notes, which have an original same amount or reserve balances,
rommprcipi
the holdings of commercial banks;-by the Treasury's new offering
matufitv
of
from
one
to' five but its reserve requirements de-...
As 1 nave sam, commercial tne noiaings oi commercial Danks.'further tightening
maturity^ or i om one to nve
a "fraction
of that banks ultimately obtain reserves It is a lot easier, however, to set t^an by tne turiner tigntening
years; and finally Treasury bonds. cilne
a ^radtion ot tnat
.
through
Federal
Rp^prve up
general orlncibles for doing of credit, and for a number ,of
Bonds are divided into those that —t.bank
Sfisfhan U fs to ^rry tbemTut
held above the lowest

Treasury finally discontinued the
i<?«;nancp ot tnem in uctooer, 1953
issuance of them in October
iyoo.

ni,;cklv

minimum

row

loss

.iS

„

"J1181. aeeP a iarge amount oi
short-term securities that can be

•

arp

are

vear

one

tpspcvp

in practice as the Treasury has .ev^st at had been reachell early
found out m the last few years.i;;;in August. ■,
. . .-.
During a boom period the Treas- During the remainder of 1955,
ury may try to increase holdings business continued to advance, but
by nonbank investors. 'This n not rome cross currents began to apso difficult as far as corporations pear. Industrial production and
a practical matter, is reflected in are concerned, since they are manufacturers' new orders conthe ultimate effect that their pur- usually attracted by the higher tinned-to rise, but retail sales
chases and sales of Treasury se- rate that develops on short-term leveled ott Then in December
curities have on the level of securities during a boom period, we had a Treasury financing that
member bank borrowings or on
It is much more difficult, howhided a certificate a"^ a J A
the level of free reserves, which, ever, to sell long-term securities > |ar rote, and this was something
of course, is excess reserves minus to mutual savings banks and life:
a flop. ^ Incidentally, this was
borrowings. When free reserves insurance companies, because at
only time that the Federal
decline, rates on short-term such times they are much more Re?erve deviated from its policy
Treasury securities rise; when anxious to place the^r funds in cf buying only bills.
r
free reserves rise, rates on short- private loans and securities; which
In *he meantime, Federal Re-

Zl partiafly" ax-exemp°tSy The"purchase Federal funds, while the °r by borrowing from the Federal
latter
relic trom the^era bank that gains deposits may pur- Reserve, but the condition of the
when all Treasury securities were chase short-term Treasury securi- short-ferm Treasury
security
ta-exen-htto romlextent
and ties,, sell" Federal funds, or make-market reflects in large part the
there
only three of these repurchase agreements' wtth proportion of these two sources of
issues still outstandine 111 i«ued dealers.
-funds. Federal Reserve policy, as
a

are

now

are

ifofni-e

sMmrnk

Thes.

extent

some

Sch

but

WnriH

inter-related

are

aiso

influenced

somewhat different factors, and at
times vou will find onp-qpption
of the market

off

its

special

less eoin^

because

own

circumstances

some

that

annlv

only to that section of the market
The

long-terrh

Gauging the Money Market
In' trying to forecast what is

rnnrkot

the

market

domi-

nated

principally by life insurance
companies mutual savings banks

likely to happen to the money
market in the future, however, we
more interested in various
other factors that result in gains
and losses of funds to all commercial banks as a whole. The
most important of these factors
are Treasury deposits at the Reserve Banks, currency in circula-

are

^on' an(* ftoat-

generally

local

and

government

cial banks- This factor has been
much less importance in themoney market during the pastyear> when the Treasury has foll°wed the practice of having socalled "C" calls, where they occasionally make calls on the "C'"
ba.iks during the morning for
Payment that day or where they
make a re-deposit or cancel a call
*Lat has previously been rhade.
This has enabled the Treasury to
Lold its balance reasonably close
to the level of $500 million which
they try to keep, and consequently,

residual investments.

For example during World War
II, when mortgages and corporate
bonds were generally unavailable

life

insurance

some

companies

Treasury securities.
of

placed

$14 billion of their funds in

the

war,

they

Since the end

have

sold

$13

billion of the $14 billion that they

purchased during the war,
they are nearly back to
they
Of

were

this

they have

which

serve

was

Bjnita

Since the

savings

1945

time

and

the

al.

end of the

that
were

1951, most

Federal

pegging

banks

days.

billion

the

that

where

pre-war

$13

sold, $10

sold between

the

total

war,

longer

major

factor

in the fluctuations in the money

market.

mutual

sold

have

Re-

market,

bil-tion,

increase

course,

reduces

circula-

bank

■

p^p
come more restrictive. Discount
Y. .es wefe raised twice. ^ The desecurities, we ties. In addition, as prices of fmiency in free reserves increased
into account long-term bonds drift down dur- J? the neighborhood of $400 milof short-term ing a boom, there is little induce- llon* Th®
9i/°<? ^fSur-yld

term Treasury securities decline, are then readily available, and
An increase in In order to get the entire back- they are more apt to be net sellers
in rates on than buyers of Treasury securi-

Treasury deposits at the Reserve ground of changes
retirement
funds.
Nonbank
fi- Banks means that the Treasury short-term Treasury
nancial institutions
such as life has withdrawn more funds from also
have to take
insurance
companies,
naturally commercial banks as a whole than purchases and sales

State'

and

Under boom conditions we ca:n
generally expect Treasury securities to be in supply in the market, and we can expect the Federal Reserve to purchase only part
of the offerings. As a result yields
will rise. Some potential sellers
who are unable to find buyers
except at considerable price declines may then withdraw from
the market. During a business recession, on the other hand, Treasury securities usually will be in
demand/in the market, because
investors will have a reduced private demand for their funds. At

reserves
"

in the hands of commer- uation.

i..

' v/

-•

■

....I.'

■

*
■■.

1 ••

■ ./

•

i
1

had Lad some recovery in price,
Par«cularly during October following the Presidents heart atJack»
J.0?; ^h.ls gJYn*. ? '
taey didn t fall below their lows
eai/y August, which was rather
surprising in view of all of the
circumstances,

During January and February
1956. it began to look as though
'the worst in the market was over,
Cross currents in business bename more evident. The Treasury
had a successful financing that
included the same 2 V2 year notes
upon the level and the trend of that were in the December fi^ be 6a ^L^^m.rch^r6^
?fthetr ,u°rts' upon PancinS' and the deficiency in
may* be a large purchaser ot how much effect the Treasury free reserves was generally under
Treasury securities,
which puts wants to have on the business sit- S300 million. Bill rates eased a

■'{

will have a loss on them in tf>e
future. In its refunding policies
the Treasury during a recession
should try to offer types of securities that will result in some
shifting of ownership from nonbank investors to commercial
banks. During a boom the Treasury should try to refund the issues that need to be refunded in
such a manner that there is some
shifting of ownership from commercial banks to nonbank investors. The extent of the shifting
in both instances should depend

.i
•

' s

■

•

■

•"".

'•

little,
•

.
■

and
•

the

.-.••••

whole

Treasury
•.

•

'■

t "' "

' r'.

t. ..- "•

Volume

184 ;

Number 5570

The Commercial and Financial Chronicle

(1195)

\rf'market

period

moved

in price.

was rather

This

short-lived.

study

Al¬

turers'

orders

new

weakness

the

equipment
pand, and the

that

would

plant

new

continued

indications

period.

analyzing

count

income

from

below

ruary

and

era!

partner

firm

million

million; in

rate

2%%

The de-,

increased
in

March

April.

The

the

Troster,

has

been

at the

Singer &
elected
•

;

Coni-7

national:

held
e

1 i

investment, and

friends

the

are

part

ship

H e
temporarily went above: W. V a.
the Treasury security succeeds

bond

man

who WORKS!

man

v /»

Raymond Ray ^

l0WS.:\P^^

and

dence

ha&

relaxation

evi¬

some

in -Federal

Reserve policy.

Boston,

Mass.

stantial

dropped to 2V2%, and the rest of
the

market

moved up from
the
Then, after the steel strike,

lows.

evidences of

some

in business
discount

new

upsurge

began to develop. The

rate

raised

was

only

honor-

served

ably

the head

was

spoke

myself too.

with

whom

substantial piece

much

World

Wars

considering

Retreads

has
department head¬
quarters in 12 states and National

that

of business and

to my

fellow

Condon

who

doesn't

a week ago.
Bills have gone*
even have an office and
who car¬
nearly to 27/s%, and the whole career as a buck private in the ries his business around in his
has dropped to new lows. Illinois
He told me he has
National
Guard
on
the5 hat.
bought
I have already referred to some
Mexican Border in 1916 and went* other municipals from him. Every

of the factors that we use in fol¬

business conditions.
The
most important are projected ex¬
penditures on plant and equip¬

with

overseas

the

American

once

Ex¬

has

peditionary Forces a year later.
When discharged in 1919, he was

while

done

business

amounts

hear
in

pros¬

that js

he tries to

fill

and

his

nings with appointments.
He has

State

local

and

governments, and to some extent
expenditures for plant and equip¬

to active

duty during tne Korean
conflict. Among Colonel Troster's

Influences
:

,ln bringing all, of this together,
perhaps the most important pqipt
with
respect
id the long-term
Treasury security market is to
compare
the supply of private
loans

and

funds

securities

flowing

with

nonbank

the

insti¬

tutions, pension funds, and State
local

and

addition
is

retirement

Federal

factor

tionship

funds.

Reserve*

policy,

changing the rela¬

between

short-term

and

long-term securities. In the shortterm

Treasury market, the most
important factors are the opera¬
tions

and

the

nonfinancial corporations
Federal
Reserve.
The

condition

reflects

the

market

money

essentially

whether

the

Federal Reserve supplies reserves

that

commercial

banks

are
the Silver Star,
Legion of Merit, the Bronze
an Army Commendation.
He is a trustee of the Peoples
Savings
Bank
in
Yonkers,
a

director of the O'Sullivan Rubber

Corporation and

director of:;the

Southeastern^Public Service Com¬
pany.

He is also

Board

tional

member of the

Governors

Association

the

of
of

Also elected
convention

very

y: Vice

appointed at the

Commanders:

Baublitz,

Oliver

Lancaster/

Pa.;

Dr.

W/ French,
Uniondale,
Y;; and Walker W. Daly, Bos¬

Joseph
N.

ton, Mass.

Adjutant,
Elmer
H.
Braun,
Flushing, N. Y.; Finance Officer,
Kleng M. Nelson, Brooklyn, N. Y.;
Officer of the Day, Raymond F.

Pa.

L A Cashiers Meet

practical

tried to

example

give

you

the

inter¬

action of these forces in the

mar¬

ket

during the past year or so.
The principal factors have been
the

business

boom

LOS

and

the

re-1

strictive

that

substantial

secure

evaluate
market

the

relative

opposite directions.
sure

that

strength
moving in
Finally, I am

influences

you

will

find

that

can-

for

membership

;

the

District No.

Committee

the
National
Association; of
Securities Dealers, Inc. to fill the

unexpired term of Edgar J. Loftus,
W. E. Hutton & Co., resigned.
In

the

formal

report presented to

District

No.

Committee,

the

nominating
committee
has
presented the name of Blancke

that

by the nominating committee will

day

door, a few
things about which to ponder?; •
you

ANGELES,
of

Calif.

—

open

your

considered

duly

elected.

John M. Irving
WEST

ISLIP,

Opens

Y.—John

Irving is engaging in

securities

business from offices at 647 Everdell Avenue,

-/r,;,,; ■/'/.

■■

Investment

House

He's

friendly

smiles,

fellow.

"shaggy
He's

only

enough

the

doesn't

sell

exempts

tax

and

Mutual

Fund.

anything

but

sometimes

This

way

has

cialty—tax

Kidder, Peabody & Co.

have to

exempts!

cover

Angie

Incorporated

doesn't
'>

the waterfront from

single column ads for years
they turn over all the leads
7/

working in

and

one par¬

ticular

phase of the investment
business, he has accumulated a
knowledge of who and where are
BEST

PROSPECTS

AND

LARGEST INVESTORS.
makes

regular
calls and
of them every working
The people whom he visits

sold

$1,000,000 in Mu¬
working
from
his
He has carefully
year.

♦

Moseley & Co.

White, Weld & Co.

Incorporated'

■>

>*'.

'■

'•

^
'

•

•'

Central Republic Company •'v
(Incorporated)

•

i,.

IIornblower & Weeks

Paine, Webber, Jackson & Curtis

Dean Witter & Co.

Francis I. duPont & Co.

Robert W. Baird & Co.,

William Blair &

Bacon, Whipple & Co.
Blunt Ellis & Simmons

Company

■'?

Incorporated

The Illinois Company

Farwell, Chapman & Co.

list

1,000 prospects

McCormick & Co.

Incorporated

The Milwaukee Company
Julien Collins &

Bosworth, Sullivan & Company, Inc.
Cruttenden & Co.

Goodbody & Co.

Piper, Jaffray & Hopwood

Reinholdt & Gardner

Company

Newhard, Cook & Co.

Stern Brothers & Co.

Shearson, Hammill & Co.
John W. Clarke & Co.

Straus, Blosser & McDowell

II. Hentz & Co.

Manley, Bennett & Co.

Kay, Richards & Company
McDonald &

A. E. Masten & Co.

Merrill, Turben & Co., Inc.

Schwabacher & Co.

Company

Stifel, Nicolaus & Company
Incorporated

Stix & Co.

Arthurs, Lestrange & Co.

Bateman, Eichler & Co.
First Southwest

Davis, Skaggs & Co.

Company

Howard, Weil, Labouisse, Friedrichs and Company
Loewi & Co.
Incorporated

Baker, Simonds & Co.

Elworthy & Co*
Hill Richards & Co.

Irving Lundborg & Co.

Lester, Ryons & Co.

McCourtney-Breckenridge & Company

Carl McGlone & Co., Inc."

Mullaney, Wells & Company

Eppler, Guerin & Turner, Inc.

Kirkpatrick-Pettis Company

Quail & Co., Inc.

Harold E. Wood & Company
September 19, 1956.

Rodman & Renshaw

Indianapolis Bond and Share Corporation

over

home last

;

Ilayden, Stone & Co.

G. II. Walker & Co.

Reynolds & Co., Inc.

Funds

screened

Ripley & Co.

Incorporated

F. S.

Bache & Co.
*

one area,

Iiarriman

'>•'*

Equitable Securities Corporation

small

him.

Incorporated

■

His firm has been backing him
with
consistent, lead producing

After many years of selling and

Glore, Forgan & Co.

;

A. C. Allyn and Company

speculative stocks to A. T. & T. '

tual

Merrill Lynch, Pierce, Fenner & Beane

A. G. Becker & Co.

who

direction

Blyth & Co., Inc.

become a specialist and he knows
the latest about his particular
spe¬

fice

the

Copies of the Prospectus may be obtained from any of the several underonly in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

writers

securities.'

Chevrier has opened a branch of¬
under

Price $33 per share

people who invest in tax exempt

salesman

day.

Anapol.

Common Stock

representing his
local) in an area of over
500,000 people and where there is
a large amount of retired
wealthy

b
,*■

firm (not

and

Company

($10 Par Value)

smart

Proposed
Pacific
Coast are usually those with spare time
He has a pleasant per¬
Stock Exchange was discussed by to talk.
W. G. Paul, President, Los An¬ sonality and makes friends with
Mahy are retired or no
geles
Stock
Exchange;
Thomas1 them.
Phelan, Executive Vice-President, longer so active in business life

Avenue

Iff,

Acme Steel

spoken, kind of
dog" ; type.
People

The

Ivar

^400,000 Shares

like him.

ing Wednesday, Sept. 19.

North

offer to buy,

soft

plenty

1737

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

t'r>i

how he does it.

Cashiers held its September meet¬

you

the

The-

This is not

Federal Reserve policy,
Los Angeles Stock Exchange, and that they have time to see him.
Treasury debt management
His firm has a good name and
Archie
Gilbert, Clearing Houseconfined
largely
to
short-term
he is selling merchandise that is
Manager, Los Angeles Stock Ex¬
offerings since the sale, of 3%'
competitive
so
his
method
of
change.
bonds a little over a year ago.
working produces results.
It
has
been
a
period of cross
Chevrier Opens Branch
There Are Others
currents, which always involves
the
difficult
problem of trying
I have
heard of another man
HOLLYWOOD, Calif. —A. H.
to

didate

Blancke Noyes

heads wearing down on you every

with

appointed

v'/r

working

doesn't

past. He learned how to sell back
in the 'thirties when, it was either
work or else.
He doesn't know
the fancy tricks, but I'll tell

Arthur A; Gilbert, Winnetka, 111.;
C. Lee Spillers, Wheeling, W. Va.;

Association

far in that aim.

have also

Inc.,

been

investment

you

What Condon Does

were:

commercial

ing

have

Possibly he is working too hard
figure it out for yourself.
One > million
dollars
a
year
of
Mutual Funds, 6% gross commis¬
sion, $60,000 of gross before very
modest expenses.
If a man can

happen to know this fellow
Condon; he's a throwback to the

„

retiring securities held bybanks, although dur¬
boom it can seldom succeed

Distributors

Group,

Na¬

Security

Dealers.

want, and during a boom it should
aim

decorations

Lunt, Williamsport, Pa.; Chaplain,
more by
purchasing Treasury se¬ Rev. Elvin < H. Shoffstall, Lan¬
curities
or
by forcing banks to caster, Pa.; Judge Advocate, R. E.
borrow.
During a boom, we can Neal, Wilkes-Barre, Pa.; Medical
expect Treasury securities to be Officer, Dr. Joseph K. Surls, New
in supply in the market and the:
York, N. Y.; Historian, Townsend
Federal Reserve to purchase only H.
Boyer,
Haddonfield,
N.
J.;
part of the offerings, and the* re¬ Service Officer, Edward Michaels,
verse
to be true during «a reces¬
Jamaica,
N.
Y.;
Coordinators,
sion.
Treasury debt management Frank T. Lynde, Chicago, 111.;
during a recession should be ad¬ Ross H. Currier, Boston, Mass.;
justed to offering the types of' and Dr. Noel P. Laird, Lancaster,
securities

Co.,

and

morning making calls and
getting the business."

Star and

Short- and Long-Term

the

ment.

An ders.on,

but

home

expenditures

Inc.,

eve-'

inventories,
retail
sales, Division, with the rank of Lieu¬ up every day. He doesn't have
government
expenditures,
resi¬ tenant Colonel. Between the two; the facilities, just his hat, an of¬
There is something to be said in
dential
building,, /manufacturers' world wars, he was a member of fering list, some circulars, and favor of that old fashioned little
new
orders,
manufacturers' the reserves for 15 years. In 1942, smile, and here we sit with an
phrase, "WORK INTELLIGENT¬
unfilled orders, and Federal Re¬ he volunteered for active service- inventory big enough to choke
us,,
serve policy.
The latter affects and served four years in the Army a room full of well padded sales¬ LY AND PROSPER," even if it is
principally residential building, Service Forces. He was recaued men, and this fellow is out at 8:30 too often forgotten today.
ment,

Herbert

single product to sell,
has organized his prospecting
and'his advertising, and he follows
up his mailings with requests for

this

Saxton

mornings,

sometimes

Stolle,

uses

sent

Co.;

a mailing
thousand plus

pays

material

O'Kane, Jr.,

O'Kane, Jr. &

He
telephones - prospects after
mailings.1 He asks for interviews

people
that
the
salesmen in my office are passing

Assistant Chief of Staff of the 33rd

out of his own Noyes,
of Hemphill, Noyes and
give some of Company, to fill the vacancy left
banking tycoons by Mr. Loftus.
who sit behind big desks in ex¬ V, If no additional candidates are
hepensive offices with massive over¬ proposed, the candidate nominated

market

lowing

women

Curtis;, John

appointments, and he works at it.

$450,000 of tax exempt bonds from

headquarters in New York City.
Colonel Troster began his Army

month.

surprise he told me he
had just bought an entire issue of

II.

and

sub¬

retail'

other day I
friend of mine

mailings he
$7.50 .per

afternoons

The

talking with

Armed Forces of the United States
both

group
a

Corporation, Chairman;
Lewis, Paine, Webber,

by the Funds he represents.

and

"Possibly

up,

was

in y the*

him

•

indictment of all of

and
Oliver J. Troster

200

postage for their J service.

1956,

and

customer list and

service

talking shop. One

underwriting

organization
this

worked

reserves

all

were

who

man

Mem¬

bership in the
group
is

The deficiency in
limited to
down to
veterans
who
about $200 million. The bill ratefree

list

prepared

< v

t*The other day I sat in

mailing

these

sales-.

David

pects.; • Since •; his
home
is
not
equipped to prepare and send out

what (security salesman¬
hold for the up and

young

special

counter¬

occasionally hear of

receive

He .also has

vcan

coming

g,\;

modern

com¬

Jackson
who

few
calls a day on the
telephone to
erstwhile acquaintances
-/and

na¬

conven¬

tion

nominating committee

posed of Frank M. Cannon, First

Selling Success

ogy, a quick course in the funda¬
mentals of

and

May

gen-» :" Even -in
these days of "short
Wall *'Street:
cuts to success"- where
psychol¬

market in general dropped to new
Late in

JOHN BUTTON

(The Road

organi-:

zation's

W h

NASD Dist. 13 Com.
Boston

Of Retreads
,

tax

Salesma

Colonel Oliver J. Troster,

•

$300 million in Feb-: tional

$400

$500

bill

raised.
reserves

Securities

;

Troster Commander

ex-^

pany,

was

'; 7

were

rate

Noyes Nominated to

as"

markets

!y '

Federal Reserve policy then be-- commander of
came
more
restrictive. - The .dis-I Retreads, Inc...

ficiency in free

security
to you"

'help

other

further in

expand

the; March

•••

Treasury
be

situa¬

the future. In addition, bank loans
showed r, a ' - phenomenal
increase
around

the

will

indicated* well.

business

tion, expenditures for
and

market

though retail sales and manufac-* in

Rogers & Tracy, Inc.

Financial Chronicle

The Commercial and

...

Thursday, September 20,1956

(1196)

tain alloys retain a considerable pensive as compared with the
must;'therefore,! amount of this structure at-joom. production of sheet or forgings.The production of shaped cast¬
be removed from the cell at fre- temperature. Much experience is
quent intervals/ in an inert at- needed by the fabricators to de-; ings is still highly experimental
and
very
expensive.
Simple
mosphere, and- allowed to cool, termine
the proper equipment
Crushing and leaching of the mass and best conditions for producing shapes, like ingots, can probably
and recovery of valuable constit- the
semi-fabricated -products be made by vacuum casting, using
uents from . the leach liquor add
(sheet,- forgings,. extrusions) re- , a furnace in which the metal is
this adhering mixture of

ode and

metal

Prospects for Titanium's Use in

Chemical and Other Industries

;

C. FRARY*

By DR. FRANCIS
*

Council

Board, National Resource

Member, Materials Advisory

ical industry

and
demand conditions; military importance in aircraft weight
reduction; infancy of alloy development; use at higher tem¬
peratures compared to magnesium and aluminum; and exten¬
sive developmental role by private industry under govern¬

;

describes

member

Board

metal's

the

supply

present

;

the

newest

the;

to
of . dead weight.

the

strongest

save

has

the

(and probably
will continue to be) the most ex¬
pensive of the three, and the most
ticity.

difficult

also

fabricate

into finished

shape

and

articles, such

air*

parts.
Nevertheless, the
importance
of
weight

plane

supreme

reduction

aircraft

and

some

ordnance items, and the develop¬

in
military
planes have made
its
availability very important. Con¬
sequently,
the
government has
spent many millions of dollars,
supersonic

ment

speeds

duced.

this very

difficult, and the
sponge
is always more impure
than
the crystalline
portion of
their deposits. ' . ~
'
*

found

of the
its production
may be considered to be very satisfactory. Much of the commercial■
progress (which has reduced. the
primary metal price by 40% in
chemical

metal,

where it is of vital.importance

highest modulus of elas¬

spongy metal can be;proMost experimenters' have

and

design of such structures,

the

than

every pound

coarse

Considering the inherent diffiinvolved in the physical

three structural

light metals, also
and heaviest, and

crystals rather

all

culties

mental sponsorship.
Titanium

the

unless

increasing use in chem- ;
and marine engineering. The Materials Advisory V"
-eventually have

•''V that titanium will

oxidation

for

ity

quired'for aircraft and ordnance melted in a "skull" of its own
composition, but the problem of
metal, construction.
, >
;

and also give opportun-

expense,

basis for Dr. Frary's belief

Resistance to chemical attack is

bath

and

properties
in

progress

/ears) hasVen

;

mold materials for

Alloy Development

Alloy development for titanium
base alloys is still in its infancy,
Certain alloys have been devel- - under
oped which can be advantageously volve
J^at treated in the laboratory, but pense.

three

Probably a limiting temperature
above which such exposure will

"Sf"6 P™ent

feasting, unless

unexpected

great

only

fabricators

ordnance.

only

their

solve

can

the

which

means

pro¬

problems and learn how
make sheet, rod, forgings, tub¬

duction
Attack "

resistance to chemical

ing, etc. of consistently

attack by most acids, alkalies and
salts
it

gives

will

to believe that

reason

also

have an
chemical

eventually
use
in the

increasing

industry and in marine engineer¬
ing.
No other metal has/ever
forced

been

under

use

into

such

been exerted

and
has

production
pressure

titanium. Because

its

military importance, the
government , has , subsidized,.., its
of

fabri¬

commercial production and
cation

various

is
Nearly all

continuing this policy.
the

present

and

ways,

market

the

for

metal lies in

military applications,
although civilian aircraft are also

finding some profitable uses for
it, even at its present high price.
loses

metal

any

strength;
then

and

heated,

gradually at first
rapidiy as its

melting point is approached. Alu¬
minum and

magnesium and their

alloys, with melting point around

12000F,
rapidly
about

begin
to
lose
strength
at
temperatures
above
400°F.

Titanium"

its

and

•alloys, with melting points in the
neighborhood of 3000°F, retain
from, about one-half to two-thirds
of

their much

perature

greater room

strength. at

friction

The

the

tem¬

800-900°F.
air

metal surfaces of aircraft

flight,
and the resultant heating, are not
sufficient, at the speeds of present
commercial planes, to make trou¬

ble

for

sium.

aluminum

such

generally
stainless

magne¬

planes, titanium is

useful
steel

only

to replace
points where

heat from the engines or exhaust
gases

has required the
heavier

much

metal.

use

But

"supersonic"

planes and
where
speeds

missiles,
times

that

(perhaps
the

sound

1000-1500

are

mi.

of this
in

the

guided
several
planned

hr.)

per

heating of wing and fuselage

covering, from air friction,
great for aluminum
alloys,

either

and

stainless

design studies, as well as experi¬
and information as to com-

ence

merci^Y' obtaindple properties.
supplyi of
the 'primary
"sponge" is more than ade¬

Our
metal

to use titanium safely
efficiently in aircraft, a tre¬
mendous amount of engineering

and
quality has been steadily im¬

its

proved during the last two years,
so
that it is now excellent. With

relatively large producers
several companies with

four

and

pilot plants, ample

steel

too

magnesium

titanium

will

petition

be.

needed.

developing

specific

about 60%

its

*An

Prof.

address

Program,
10, 1956.

only

that of steel, titanium

alloys

Herbert

second

gravity

annual

New

become
by

important

Dr. Frary read
Kellogg
before

Titanium

York

by
the

Metallurgy
University/ Sept.

the

com¬

tech¬

nology of producing the metal by
reduction
of
the
tetrachloride
Also

other

two

sodium.
companies have

magnesium

with either

promising electrolytic production
processes operating in small pilot
plants, and the Bureau of Mines
has
developed and described a
very promising electrolytic proc¬
ess for
refining impure scrap. A
number of other processes are be¬
(or have been) investigated
laboratory scale.
i
i

ing
on

design

for titanium in aircraft lies where

the
refining of titanium

Electrolytic
production
all

labor

for

processes

under

serious

disad¬

with the
electrolytic
production
of
alu¬
minum and magnesium. While the
vantage,

metals

latter

two

compared

have

low

enough melting point so that they
may

deposited

and

accumu¬

lated in the electrolytic cell in the
molten

this is not true of
melting point of
3000OF
would
require
a
state,

Its

titanium.

about
molten

metal

such

bath

stable

fused

(non-volatile)

3300°F

least

were

salt

if molten

tapped out. No
containing

bath

known, and the op¬
eration of cells at such a tempera¬

titanium

nitrogen.

and

serious problem.

terials

always contain oxygen,
nitrogen or carbon, which have a.
great affinity for titanium, dissolve in the molten metal, and
it

harden

greatly

fractions

small

even

Most of the production of semi-

forms

the metal

(sheet, rod, forgings, extrusions)

1%. This

difficulty, involving has been done on machinery deboth equipment and ooerating ex- signed and used for the working
pense,* in both production and fab- °f ahoy steel, bronze or alumirication processes,
i -'-j
num.* Undoubtedly better results.
is

basic

mus"athe™£OTedb/cTrriedrout0at o^tated^with,Equipment
IwrtS
argon.

i!/r
Melting

and

casting

eEPe:

heavy investment which the pres-

production does not

ent voiume 0f

atmosphere,

same

?F1.r.e

More important, we do
Molten titanium can only be al^ /et know enough about the
lowed to come into contact with
behavior of the metal during such
solid

titanium

with

justify.

another

the
pressures
invoived) tbe effects of roll and die
temperatures, shapes and matefabricati0n,

metal
so

wJych is kept cool enough
that the molten metal freezes

once

The

contact with it.

riais

usually in vacuo, is
at
present
the
only
practical
source of heat for the melting op-

electric

arc,

Double

eration.

move

melting

and

embrittles it. The hardening effect

eleihents

interstitial

these

(oxygen, nitrogen

hydrogen

car-

bon) is particularly bad in reduc-

elongation of the metal,
thus interfering with fabricathe

ing

any

Gperate

avidly absorbed by titanium

roning and extrusion speeds,
to
design such equipment

certainty that it will
well without extensive
experimentation
and
changes,
Corresponding
equipment
and
fabricating
practices
for
other
metais have been gradually devei0ped over the years, and much
w^th

present practice, to rehydrogen,
which is also

vacuum

etc

no yt

the

fav

learned

use

available machinery and from ex-

perience in working other metals,

this,

However

and

the

develop-

equiption
processes
such
as
rolling ment especially designed for the
forging, drawing and shaping of fabrication of titanium, is going to
finished products. Low elongation require considerable time if heavy
is also objectionable in the use of iosses are to be avoided,
the final product
In general not
producti0n of extrusions of
over about 50 parts per million of
titaniu£ and its alloys is particu.

't lin

nitrogen, and .05% carbon shou
be

present.

ment and

building of

e]evated

temperatures, desired

for tbe eventual uses,

impractical to hot-work the
metal in a vacuum or in an atIt is

new

Icifly difficult. The high strength
a,

use

the

involves the

0f very high unit pressures

extrusion

Unless a
the metal soon

cylinder.

mosphere of pure argon; we must

lubricant

speed in heating
and working, and on the removal
of scale
(oxide and nitride) by
some
pickling
operation which
will, at the same time, introduce
a
minimum amount of hydrogen

begins to stick to the die, and the
extrusion has a torn or scored

therefore rely on

into the metal.

Because

the

fact

that

pure

surface.

The

used,

use

molten glass

lubricant in the extrusion of steel,

avoids this difficulty, but gives an

irregular
surface
and prevents
holding the product to the desired

close dimentional tolerances.

Or-

extremely difficult
titanium crystallizes in the hex- ganic lubricants containing graphif not impractical.
agonal system at ordinary tern- ite or molybdenum sulfide have
Consequently,
all
electrolytic peratures, the amount of cold been tried, with varying results.
titanium
processes
involve pro¬ work (rolling, drawing, forming) Friction in the die causes it to
ducing on the cathode a spongy which it will stand is very limited, wear rapidly, so die life is very
or
dendritic crystalline mass of Fortunately, at higher tempera- short.
Consequently, the producmetal, impregnated with a large tures, a change to the more due- tion of extruded shapes, needed
amount of molten bath. The cath¬ tile cubic system occurs, and cer- for aircraft, is at present very ex¬
.

the metal will be exposed to tem¬
peratures of 4Q0-8OO°F or higher/
where

aluminum

and magnesium
rapidly, this infor¬
mation must include the proper¬
ties of the metal at these higher
temperatures,
where
testing is
generally more difficult and ex¬
pensive than at room temperature.
The great influence of "intersti-

lose

strength

tials"

on
properties, and the/diffi¬
culty of controlling (and in some
cases
determining) them compli¬
cates the problem. Not only ten¬

sile and compressive ultimate and

yield

strengths, with elongation
values, but also creep strength for
long and short

in fabricated

present
of

Fabrication Behavior
.

information must be ob¬
Since the principal field

tained.

hot ,/or™ng remanr to be
developed. The .great galling
the common refractory crucible tendency -of_
Titanium, . which
materials, and most (if not all)! f?ak.es„rt Stick tp the tools, parof the uncommon ones. Such maft high temperatures, is
oxygen

and

Progress in Production

are

order

and

The molten metal reacts with all

quate for our present needs,

ture would be

With

and

rolling program has
been set up and financed by the
government. This will furnish a
large amount of experimental ma¬
terial for further fabrication and
shet

large

and

To accelerate
process,
a - rather

learning

this

the

high qual¬

ity at lower cost.

smaller

When

are

Higher Temperatures
In

aircraft

Its great

some

advances

made in this^art.

the

Chemical

likely- to in¬

seems„

difficulties and ex¬
The high melting point of

for its correct and eificient use in
and

argon

great

rather- than

small part of the year's duction and fabrication processes, comes practical, with some alloy,
production of "sponge" or primary While titanium is inert and non- to form articles after solution
corrodible by most reagents at bea^ treatment and before aging
and will continue to spend more metal.
ordinary temperatures, this inert- (ft an elevated temperature), the
for a considerable period, on re¬
Demand is improving, however,
ness disapears at higher tempera-. stfect
of cold working on the
search and development projects
and
this year's sales should
be
tures,and at the production and aging operation and the resulting
concerned with the production of
more than double last year's. This
fabricating tern per a tures the; properties may be serious and
this metal, its fabrication, and the
increased demand is very impor¬
metal avidly combines with even must be known. Good lubricants
engineering
information needed tant, since practical experience is
traces
of

Resists

very

makes the
commercial heat treatment prac-- titanium with mold problems of
materials, as
tices remain to be developed Wev reaction
n®e<*,
S ,° ^now m°re of the well as with the atmosphere, very
serious. It would seem that small
e^ects of long-time service ex- articles would
probably best be
P°sures of heat treated alloys to made
by powder metallurgy proc¬
1
ti rf
esses or by forging or machining,

made pos™
Many of the non-technical pub¬ sible by government financial aid, change in properties,
in
guaranteeing
a
The very high strength of titanlic have been disappointed at the particularly
at, ordinary temperatures
apparently slow rate of progress market (the stockpile of strategic ium
materials) for all metal produced makes anything but the simplest
in producing and using this socalled "wonder metal."
A Con-, during a certain time by the new cold forming operation very difficult, if not impractical, unless the
gressional
committee
produced plants
metal
is
in the annealed state.
testimony that 150,000 tons per
Chemical Property Difficulties
The
problems
involved in the
year
were
needed for aircraft
The chemical property difficult local warping of formed articles,
alone, but last year's actual sales
of the wrought metal were less ties, which I have mentioned, are i" any subsequent heat treatment,
If it Re¬
than
5,000 tons, and consumed basically important in both pro- require investigation.
Rate of Progress

general1 cast- *

difficult one, and
• the production of a large series of
small castings in a vacuum or
ings is

and

notch

fatigue

exposures,

fatigue figures,

son's ratio, modulus of

Pois-

elasticity,

etc., must be determined as func¬
tions of temperature.
Detail of
methods
of -joining
(riveting,

welding)

must

their effects

studied

and

the efficiency of

different joints in structures de¬
termined.
The effects on various

properties prod uced by the neces¬
sary cold forming (or possible hot
forming) operations involved in
aircraft manufacture must be de¬
termined.

All

this

information

needed, not only for commercially
pure

titanium (however this may

be defined) but also for each alloy
which may go into commercial

production

and

num

similar

mation for

this work.

infor¬
for their

still engaged in

are

Someone must spend a

tremendous

amount

time

acquiring this

information
There

been

design

30 years,

over

products, and

alumi¬

industries
have

customers

developing

money

The

use.

magnesium

their

and

are

and

type

titanium.

not

many

places in

existing models of aircraft where
titanium

can

advantageously

substituted for another structural
metal

(usually
alloy
steel
or
in current construction.

stainless)
The

high sped supersonic planes
of the future are in the design
stage, and production of even pro¬
totypes may require several years.
Meanwhile

develop
the

experimental

behavior

longer

to
in

titanium

periods

use

experience

practical

time,

over

under

service conditions, is being vigor¬

ously pushed. There is no lack of
interest or enthusiasm, but a cer¬
tain amount of caution is required
in

building

much
failure

By
We

structures

where

caused
part in service.

damage

can

Private

therefore

Industry

have

time to

de¬

tech¬
niques
and
at
least the most
urgently needed engineering in¬
formation, if the necessary work
is vigorously pushed. Because of
velop

some

manufacturing

the chief demands in the near fu¬
ture
are

(and the most urgent ones)

military, government sponsor-

Volume

184

Number 5570

The Commercial and Financial Chronicle

(1197)
ship is justified and is being given;
Evenwith
will

still

tanium

serves in

can

least

aid, much time
required before ti¬

take

can

the

place it de¬

the world's
economy. We
of the fact that, at

proud

far

the Western World

/V--,

is concerned, by far the
greater
part of. the development work in

.'•l'.'■&.<■;

;

^ character of American labor movement, and sees, as a consequence, peril to U. K. economy—compounded by Suez crisis.
Avers Socialists and trade, unionists
completely believe in
physical controls as inflation-solution, and that it will take

Elects New Officers
©f the Bond Club of

Sept.

elected

1956,

for

They

the

ten years

meeting

officers

year.

tiallly

Schollen-,
berger, Camp< "v
bell. McCarty/V*
& Co., President. ;

Milo O. ; v
Qsborn, Paine,

Presi-

;

Friday, Fri-

d.a y

Co..;;,:
Secretary-?

Detroit, will be

Unite d

argument will work

estimate

...much

accen:.

acter ;of~B)rit-

h, t

power

for

few

they

years

trial

of strength beconflicting forces is
to a head within

come

$19,648,000 Bonds of
Nassau

County, N.Y.
Publicly Offered the price. V...

been worth while to pay

;

As'

AT„+;„v^i

things are, it will take an-*
prolonged Socialist rule in

^.-+

Britain to expose the basic fallacy
of Socialist economics.

first

few

the

years

claim

that

inherited

its

from

difficulties
the

underwriting.
ra^fo 5

Labor

position
were

Conservative

Brothers and
fj' are ■!f.in*:'

?
j^Jiagers*,of. an

During the
next

other

the

sense

approximately how
this

will

nnn

?T p

an 4.1ssi1t
^19,648,000
Nassaa County, New York, GenJ;
Obligation yarious pqrpose
b°uds, due Oct. 1, 1957 to 1985,
| v^clusive
^
■; *V' J
/
^

the spirit in which
be

-.fond

: about

ttr

wages demands

negotiated. -Ever*
officials

"
Higher Wages Hurts

the difference to

:-past" /trade' union

ericF- y

by physical controls
tenable^ in^^
iohg riiri:
up•

to the actual level of wages. What
be-said with certainty is that

'will

throwing

the

were

c c

are

resenting £a., net ..interest, cost, of
3.3434%.

un--

bonds are being reoffered 1
prices .acaled^ to #ielcl^froni;
^ 2.25% to,3.35%, according to ma&£ The

■

Exports

entuated trade unionist

in favor of disarmament

vturttyf,^
*' Other

;

£
members

the

offering

yery^pfcfJ-tjs cFenh^^/^CdV;

coincidence

with

The

the Suez crisis,
that ^crisis clearly
show that Britain could ill-afford

thefr. weight

when

resist; the temptation of obviously
enjoying the use-of recently-acquired power; "Trade Union rude^

The resolu-

■

pressure

negotiating with emr
.rplpyers:'^It is always difficult to

trouble

aisequilibrium, bolstered

economic

make

caii,

unionism fore«;

litical

even

difference

-it will "make .all

.foe Britain:

H.;S«hollenberffer.

one

but

disinflationary

-less economic,.;
i social and po-

Treasurer. The vi
Bond Club of
/

fuation of they
political chars

the

Gov-

the next twelve months,

shadows

unions

States. For the

The

tween

likely to

its

the

choice

regime. It will take at least ten
things for which Britain of reinforcing and
exaggerating years of continuous Socialist rule
reato
make
British
ywages
demands
instead
of
re¬
opinion
fully; ; The group submitted a bid of
n v y\
-straining them. It is difficult to realize that artificial situations of -}00.808rfor a 3.40% coupon, rep?

recent
;

■I

d.entyWilfred;

the
;

;

son

;

have

reinforce

drive.

was

Socialist

unionism,

will

have been costly to the
nation, butV
in the
long run it would have

of Labor Party rule to expose the fallacies of such
\" Socialist economics.
*

trade

the many
has good

bert

Vice

the

replaced

Conservative Government because
the Socialists had remained in

Eng. — The essen-y ; Now that trade unionism has
non-political character of gone into opposition the political

American

follows: Her¬

Webber, Jack-;:
son
& Curtis,

1951

was

trade

LONDON,

asT

are

Government will be in

were

fiscal

point of view it

that

Government

Detroit, held

new

pity

this

Detroit Bond Club
a

From
a

litical

ernment

point.

tionary drive in next 12 months is predicted by British econo- V;.'; would have had to face the full
mist Einzig.;; Compares British trade unionism war declaration
consequences, of
their economic
>
against Conservative Government with essentially non-political V'rV policies, j, Their education would-

■

DETROIT, Mich.-—At

certain

By PAUL EINZIG

/Trial of strength between rising wages and reinforced disinfla- 11

;

this field is
being done in this
country, under the support of the
United
States./; Government,
by
private industry.
—
<
s
C;:•

such artificial positions cannot be
carried with impunity beyond a

The Rising Threat to Britain
In Political Trade Unionism

this

lessons

.'reduce

ventional

her

strength

armaments;

disarmament

.•

Eastman
Dillon,' *Union. Securities & Coi Goldman, Sachs & Co.;
Kidder, Peabodv. & Co;: R. W.

con-J Pressprich & Co.r Merrill; Lvnchy
true, ^Pierce,*1 Fenner:- & Beane;!' Mer-

would .tend

to be cantile Trust Comnanv. St.
Louis;
become a byword in disinflationary.' In practice, how- B. J. Van Ingen & Co. Inc.; Shields
industrial relations.
Even so, lit ever, it would, only mean- thatCompanv.
' *,. "
''
be more room for,ry
was possible to argue with trade there- would
Bear,/ Stearni'f &: Co.; Geo. B.
union officials on grounds of. con- excessive wages demands which Gibbons
&' Company
Incorpomade hy some of the leading trade*siderations of public interest, r; 1 could then be conceded without , rated Kea„
,

holding ; their Annual: Fall Golf tions passed at
Dr. Paul Einziff'
Party at the Orchard Lake Coun-- the recent Antry Club on Sept. 18. -. r
nual Conference y of the 'Trade
Union Congress and the
speeches

ness". • has

•

■

*•

■

Bank of America

the Conservative Government.
For
all

headed

group

practical

trade

School District Bonds
-

union

come

Bank

movement

has

National

Trimt

Soc=on^

be-

integral part of the So¬
Party and has gone into

The
at

bonds

prices

from

Associated

;

the

First National

United

offering are: very little
City Bank .of a**» to the
unions

matter

unions

will

that

means

that if

£100 million saved

the

but

same

the

cost

that

physical controls

suppress

would

inflation

defense.

Taking

not

would lead to

but

million had

the-£100

ment, . supported
by- the
overwhelming majority of economists,

been

long view this would

W. H. Morton & Co.

Incorporated;

Hallgarten & Co.; A. G. Becker &
Co.

Incorporated;

liams
rn

Baxter,

Trust

TnrnrnnratPri

.n^°^pora

v ;XT

Eldridge V E.

Quinlan

Co. .Inc.;

]y[aivern jjjjl & Company Incor,^

„

Rodman

Co.;,

Julien

Bodine;

Collins

Schwabacher

Renshaw;

Company; Byrd

■

Fra^isco^_ContinentalTT*IP 0 15^unions, Socialist and non-Social-;
Bank^ Trust Company,ist trade un[0ns, Christian orv
£ ??1CDg°V.^fmiraI+i, n«n?X4 Catholic trade unions, with large- i-: '.
change Bank; The Northern Trust

V •"

memberships in each trade. Even

Company;

California

Bank,

Los

An-fan end

may

geles; Equitable Securities Corpo-5:than practical.
ration; Bear, Stearns & Co.: Dean postwar period
Witter & Co.: William R. Staats &

Mercantile

Trust

Company,

St. Louis and Reynolds & Co.

was

that

Elected Director
Board

Directors

Donald

Directors,

the

•

Doman

Glidden

Board

New

Stock

leading

Exchange and
exchanges.
He is

made

were

Board

100,000 Shares

vy : /

Corporation

Par Value

Convertible after

per

April 1, 1957

Price

$20

per

Copies of the Prospect its

may

be obtained from the undersigned.

achl®ve 41,fhac:

Government, in which the unions

willing to accept somewhat
the
maximum
they
would have been in a position to
were

J. R. Williston & Co.

Auchintloss, Parker & Redpath

Goodbody & Co.

than

arhipve

ith

strikes

acmeve Wlttl me aid ot strikes or
mitigating the inflationary trend.

the

conditions.

Directors of the Pacific Coast Co.

member ^of

$1.20 Cumulative Convertible Preferred Stock

pressed ruth-

threats of strikes forTthe sake of

September 18, 1956

onerous

also

full

tbeless tbe.r® were borderline
cases- specially under the Labor

than 30 years with E. F. jess
&
Co.* members of' the.

York

other

•

fhP^nfhl™a,°I^rlk^r^?r:

i ■; /'

ceptance of the demands without

Doman,

♦:

Nortex Oil & Gas

lessly to the utmost limit of posext?nt to which

0£

Mr. Phillips has been associated

Hutton

working

iAi" haTelect- ?fbility-to
Phillips, -general 14 w.as P°ssib4e

Chairman, has announced.
for

only by the Prospectus.*.
"'.v—1''"

theoretical
Throughout the
the general rule
unions

trade

Their demands

partner of E. F. Huttori & Co., a
member

•

increases and other

yV, changes

Doman Helicopters
ed

use
of their strong bargaining
'i power to secure the maximum of
wages

The

Co.,

'
'
any non-Socialist Government and
Security-First National Bank of therefore to the nation.
Los
Angeles;
Seattle-First Na—
The difference made by the detional Bank; R. W. Pressprich & cision of the Trade Union ConCo.;
The Philadelphia
National gress to bring wages restraint to

Co.;

The off erin& is made

».

NeWISSUE*,'

g°n-

Bank:

-V

Lazard Freres & Co ;■ that
system, though far from sat^
R. H. Moulton &
isfact0ry, compares very favorably
Company; Glore,-, Forgan & Co.;, wjth the new British
system unC. J. Devine & Co,; Merrill Lynch,
der
which
the
whole might of.
Pierce, Fenner & Beane; The First; trade unions will in future
b^.
Natibnal Bank of/Portland, Oreused for making
difficulties for *

Drexel

v?\

H. M.

Byllesby and Company
(Incorporated)

Plated; DeHaven & Townsend,

Bank;

Third;Nashville Bank

in Nashville; R. H. Moulton & Company;

; /.■

Company;

Savings

Wil¬

Co.; Braun, Bosworth &

£-afina of the balance of payments.
Brothers; Fahey, Clark &
claims whether the Admiriistra- Merely disguise them by creating
To counteract the accentuate*! Burns,. Corbett
& Pickard,
tion is Republican or; Democrat.'artificial situations of disequilibGuaranty Trust Company of New .*11 a number of Continental coun- rium.' They refuse to admit that wages demands resulting from po- and McDonald-Moore & Co.
York; J. P. Morgan & Co. incor- tries. there
are
separate
trade
,-porated; Blyth & Co.; Inc.; The un"??s ,for supporters of various
First Boston Corporation; Smith, Political parties and'their political
Barney & Co:
' tendencies cancel each other out,:
This, advertisement is neither an ofjer to sell nor a solicitation of an offer to buy any of these securities.
Bank;' Bankers

Harris

.
^

poration; Bacon, Stevenson & Co.;

Crouter. &

additional deterioration

■

& Co., Inc.; First of Michigan Cor¬

spent
.

,■

„

blower & Weeks; Adams, McEntee

of produc-

degree

makes

Taylor & Co... Hornj

defense

cutting down defense expenditure, tion of British manufactures
Socialists and trade unionists are would, increase,to a larger
entirely unimpressed by ,the argu- than it would have increased if

of;."wages

trade

inflation could
checked not by
demands but by
ical controls >and by. drastically

difference, if any at
attitude of the trade
the

States

the

expenditure is spent
and s h o u 1 d be
restraining wqge* on additional wages increases, the
reverting to phys- degree of inflatiton would remain

Unions Elsewhere

In the

New York; The Chase Manhattan

- t

iam

:
/ i -

"to

3.1%, according to maturity.
The

wit^

has to contend

being reoffered

yield

won

3%% coupon.

are

Sav-

penalty in the form of
aggravation of the balance of
payments position through the in-

b.w:ew

' There is reason to fear that in
the future such arguments will be flation of purchasing power.
brushed aside^ To arguments put The penalty would be paid, never¬
forward by Government or. em¬ theless, t h r o u g h the effect of
ployers that heavy wages demands higher wages on the competitive
are inflationary the stock answer
capacity of British exporters. This

British

cialist

the

purposes

militant opposition to the Government at present in office- The
award of S29 000 000 Los Angles grave significance of this change
toio^Col is «rad«any being realized in
i^^iSrir^BondT dueOr?f" Britain. It has come to be reiJw fhrmJeh 1981inclusive on yarded in business circles as the
i'u' 3 101.64 for a •??/ i?
worst of the many evils Britain
a bid of
America

immediate

Groupa„a

Winslow, Cohu & Stetson

Co.;

Inc.

The Commercial and Financial Chronicle

(1198)

Continued from first page

American

•

We See It

nationalism

ingenuity—and the ingenuity of other peoples-

Stewart 50 Years

will seek and find ways and means of surmounting the dif¬
ficulties which circumstances have strewn in their path.

Thursday, September 20,1956

...

With Kuhn, Loeb

investment

the

prevalent everywhere among the so-called
backward regions of the earth. Many of these areas are
rich in prized resources or lie athwart established routes
of trade and transportation. They want independence—

except Russia which appears in the eyes of imperialist

often so many of them
multitude of "splinter"

Stewart, partner in
banking
firm of

Percy

t)nder Handicaps

ward

now

want it that there is danger of a
nations none of which is able to
sustain itself—and they are determined to have what they
regard as their own to do with as they choose. The fact
that the so-called great powers have developed these re¬
sources at great expense (usually quite lawfully) and that
the backward peoples to whom they belong have greatly
benefited from their development is as nothing to these
aroused and

fire-eating nationalists,

Of course, former
victims to have

expiated her sins

apparently

Kuhn,
Loeb
&
Co., ' 39 Broad
Street, New York City, and one of
the

under

are

—

severe

•

>
*

syndicate
in

But it

ought not to be impossible. The natural

of most of these

ness,

17 "observed

in former times what the Russians

and

colonialism

was

generally accepted

and imperialist nations

would

ass

friends.

The

trick.

"When

matter of

in due

Kuhn, Loeb &

•41

general idea of self-determination

regions

one

rising tide of nationalism abroad.; There
question of "shooting our way through the
Canal," as Secretary Dulles puts it, or, for that matter

Suez

shooting

our

vested there.

It is, of course, a

situation.

new

into oil regions to protect

way

need

in¬

money

difficult, and in

a sense

not, however, be disastrous.

infinitude of patience and level-headed

foresight doubtless
will; be required. Probably certain losses, or at the least
lost

profits, will be inevitable.

But

have

doubt that

offer

under

circumstances

to .be

construed

solicitation of an olfer to buy
any
The offering is made
only
by the Offering Circular

of these securities.

Corporation

engaged

developing

320-acre

located in Santa Barbara
County, California of which
of the 320 acres is considered

acres

oil

total of 300

The

Offering

*dealers

Circular

may
be obtained in
is circulated from
only such

brokers

any

State

904

which

this

WILLIS E. BURNSIDE & CO., INC.
Broadway, New York, N.Y.
WHitehall

send

Fortune

without

Petroleum

obligation
Corp.

Address

•• - ----

much

million

copy

the

circular

relating

;

the:;

of the
behind
the

The

exciting,

future

road

but we'd

issues

some

the

prominent industrial, rail¬
and public utility companies

ernment, state and municipal ob-'«

ligations, domestic and foreign.
Complementary to his activities
the investment banking field,

Mr. Stewart has undertaken many

public service responsibiiities, He
has

served

New

with
from

ofi the

Exchange,

America,

and

Chairman of several of the As¬

sociation's

committees.

securities

nZT

w'^

u"h7'

Dunng Wor?d W-?-r ? he_wa?
active in various War Loan Bond
Drives

and

Eastern

was

Chairman

the

Investment Banking Vol-

Baker, Weeks Opens

tee

created

fense Production Act of

is also

the

pursuant

De¬
He

1950.

Director of the Beekman-

Downtown

Hospital

and

Gov-

of Federal Hall Memorial
Associates, Inc., New York City.
ernor

+,
.

Mr. Stewart is a Trustee of the

Southbridge

Maas

Di-

and

rector of Allen B. DuMont

Lab-

oratories, Inc., Clifton, N. J.; Du¬
Mont

Broadcasting

Corporation,

New York City and

Uranium Re¬

duction Company,

Salt Lake City,

"7:;, J'^

slow

about encouraging
folks to hurry up and

young

duce

lot

TORONTO,

our

the

us."

soils

New

de¬

Oriental

country

The

measured by acre yields

but the

people of India, China
Japan have, on the average,
2,000-caloric diet in which only
to

10%

animal

origin.

their
...

protein

In contrast, we

New

York

offices

and has

and

City,
in

has

other

Philadelphia,

London,

England,

representatives in Geneva,

111.

Edward

—

Ripley & Co., addressed the

Investment Women

"Self

of Chicago at

dinner

opening

meeting

Regulation

Security Business."

New S. F. Exch. Member
SAN

firm, whose main office is

Montreal,

and

man

Exchange

Sept.

branch

Stock

in Canada, announces the
opening of a branch office in
Toronto. The office, located at 12
Richmond Street East, will be un¬
der the management of David L.

ciency,
.

York

their

—

Chandler.

every

Canada

and

the

University

Ont.,

and other leading exchanges here

primary
problem of the Orient, according
to Dr. Bear, former chairman of
Rutgers

CHICAGO,

George, Vice-President of Harri-

Baker, Weeks & Co., members of

pro-

Over-population — rather than
inadequate or inefficient agricul-

already

Chicago Inv. Women Hear

Branch in Toronto

ald

FRANCISCO, Cal.—Ron¬
Kaehler,
President, has

announced the election of Charles

Clisbee

San
Mr.

membership in the

Francisco
Clisbee
,

is
.

Stock

Exchange,

President
,

and
.

a
,,

Switzerland and Amsterdam, The voting stockholder of Charles M.
Netherlands.

....

untary Credit Restraint Commit¬

Governor

Stock

Association

ers

ex.

York

Governor of the Investment Bank¬

Utah.

better

in the United States and for gov¬

us,

looks

aware

and make the decisions but'

stock

most

this

transactions

is recognized
as a
leading
authority on the pricing and sell¬
ing bf securities. As partner in
charge, of the distribution depart¬
ment of his firm he has managed
underwriting syndicates for bond

acreages of land are being
farmed with a high degree of effi¬
offering

art

synthetic
chlorophyll
urged on by atomic energy not—
withstanding."

remaining

acres—some

even

large

of •the

depart-j,

partner in the

in the world of finance Mr. Stew¬

-v -

3,200-caloric diet,
60% of our protein

1941.

financial

scenes

appreciate children/ But
a limit to
our capacity to
enjoy'the grown-ups into which
^hey develop. And Malthus
may jn due time return to plague

being

"In

more I
lhere's

land we have
rapidly lost to cities,
super-highways,
factories,
and

Name

'i,®-.-

...

water—even

partment.

Broadway, New York, N. Y.

Please

million

land will alvvays have
aiter milk-

our

ture—is

3 0852

,,jir

syndicate

the most ^productive

go
in

of the undersigned or other
may lawfully offer these securities in such State.

Willis E. Burnside & Co.

1,000

ing the clouds and extracting extra supplies from the sea — to
support more than very sparse

the

Some

highly

UNDERWRITER

way?

reservoirs.

Price $1.00 Per Share

—is

300,000 Shares Common Stock

its

public is often not
people
who
work

"And

lease

proven.

announcement

enjoy
nearly

populations.

FORTUNE PETROLEUM CORP.
The

firm

too little

permit population over-crowding.'

acres
announcement

/(1-

office

1926, head of the depart-

ment in 1930 and

probably produce enough to feed animal sources."
rne billion
people well—but sheer
A recent tour ol the Orient, the
population
pressure
and
over-: editor
said, confirmed his belief
crowding, an agriculture expert "that the Malthusian
principle if
warned
the
American
Chemical as sound
today as it was when
Society meeting in Atlantic City, f)rst
promulgated by Thomas A.
on
Sept. 18,
Malthus in his 'Essay on the Prin"Jiow long can we continue," ciple of Population'
this prinasked Dr. Firman E. Bear, edi- ciple is that the ultimate controls
tor-in-chief of 'Soil
of population are famine, pesti¬
Science',
"with the yearly addition of the lence and war."
equivalent of one 69,000 city in
In the United States, commen ,od
every one of -the 48 states with¬ Dr.
Bear, "hopefully all of us can
out
finding
ourselves
in
each
say
that 'the older I grow the
oiher's

This

■

member

ment in

not

imminent problem is
not food—because the nation can

way

another to the

can

editor does

America's

to be faced

seem

{;: %

having been born in New
York
City and edueated in the;.*
public schools of the city. After
gaining experience in all depart¬
ments of the firm, he became a •
boy,

question our ability to feed
America's growing population, but does question whether we

larger countries and their nationals

necessity of reconciling themselves in

a career

started with the firm

the

>/;f

mid-

which was :
of rising ;
top but;
also of the city boy making good '
in the big city.
For Mr. Stewart \

"Soil Science"

can

with funds invested in backward

'•

Co.-- in

.>■/']*■?./».September,

1906, he began

"rights" will not help.
be, but they, too, can ;be dealt with
'
\
\
' V *
;

,'i>

So it is that the

with the

course.

Stewart

to prove not only a case
from the bottom.j to the

Sheer Population Pressure
Decried bv Soil Scientist

great deal that

countries, too, and force even to
protect formerly acquired interests in backward lands is

longer feasible.

Percy

and

course,

as a

he;
the

offices 4o f

owners

Doctrinaire attitudes about

Nassers there will

for all, or nearly all,
peoples has taken hold of the minds
in formerly
imperialist

confidence

calling

proceeded to do

ociation

wi+^ the firm.

peoples of these regions. It
should then be possible to sit down and
lay plans for
mutually profitable economic operations in these lands.
Astronomical give-away programs are not likely to do the

today shock the public conscience and leave them

without

the

so'fond of

are

of his

versary

scattered around in the remoter

resources

Sept.

the 50th anni¬

;

under¬

writing busi-

patriots also often forget that they are not as I
parts of the. world; are palpably not capable, at /this rtime,
yet' in: a position to carry on in the event that foreign ;
fit least, of exploiting them. They moreover are more often:
capital is pushed out. Such a situation can be counted *
than not immersed in deep poverty.
They desperately
upon to bring forth all the demagoguery to be found in
need Western know-how, Western capital and Western
newly democratized countries. Since it is a fact that all,
confidence. Western capital can make profitable use of the
or virtually
all, of the areas now seething in this way
opportunities thus presented if only amicable and depend¬
have historically been spheres of influence of Western
able relations can be established in these areas.
So long
powers, the situation now existing offers many oppor¬
as the situation remains what it is
today in most parts of
tunities to imperialist Russia. The Soviets have, however,
the world there is risk, of course, in going into such regions
perfected a different technique for their colonization; they
with large amounts of capital. In their own self-interest
can be as anti-colonial as
they please in what they say,
these backward peoples must be prepared to meet the out¬
and still slip in the back door when the Western powers
sider half-way. Russia, of course, is in ho position to be
move out of the front door. This is a state of affairs that
of great help—nor has she
any good economic reason for
has grown out of history, sometimes shameful history and
wanting to be.
sometimes not, but history in
any event, and it represents
■
The basic problem is, of course, to
gain the good will
a trend that is not likelv to pass or fade

Historically, the imperialists were deterred in such
situations, when they were deterred at all, by fear of war
with other imperialists who were rivals for the
prizes at
stake. In this respect the presence of Russia in the con¬
troversy is orthodox enough, and as in the past is doubtless
an
important factor in the current situation, but there
have been profound changes in the meantime. Whereas

men
secu¬

entered

Forget

away.

the

rities

one.

These

most

widely known

handicap in dealing with these insurgent elements in back¬
areas.
No matter what they do they remain suspect.
The United States, being allied with the more active of
the former imperialist countries, has its difficulties, too.
Not unnaturally British officials—or some of them—do not
find it easy to adjust themselves to the new conditions with
alacrity; The same is to be said of the French. Our task of
standing by our allies and at the same time trying to find
present day solutions pf old, old problems is not an -easy

' J

imperialist countries

.Clisbee & Co., Inc., of Tulsa, Okla.

Volume

184

Number 5570

The Commercial and Financial Chronicle

./.

(1199)

San Francisco Bond

The American

People's Capitalism Seen
Answering Totalitarianism

Glub to Hear i
SAN

FRANCISCO, Calif.—Max
Thornburg, Foreign In¬
Consultant, will be the
speaker at the initial fall meeting

By ARTHUR B. WALLACE;

Dr. Nadler describes America's
growing "people's capitalism,"
and phenomena of less
pronounced business cycles, and claims
this American system

Weston

dustrial

This

Week

Insurance Stocks;

—

I'.

Two weeks
ago we discussed the
surprisingly poor;-statutory
underwriting results of a representative group of
fire-casualty
insurance stocks.
This week we
bring out two. offsetting factors:
the increase in the
1956 first half investment income
over
the
like period in
1955; and the increment in the 1956.first half in the
same
companies' investment portfolios. The latter
figures in the
accompanying schedule include realized profits or losses on
assets
sold during the
period, as well as the book change in valuations.
It will be observed that
despite these increases in investment
income and asset

valuations, insurance

stock

oftheSan

Bond

\ H

>:■

"fc

Net Investment Income

(First Half of

American, Insurance

$198,000

Bankers & Shippers

vs.

1,193,000

Fidelity & Deposit

Portfolio Valuation
Same Period in 1955)

(9.0%)

(26.7)

(11.2)

1,270,000

(33.2)

Insur. Co, North America

1,338,000

(16.5)

96,000

(12.2)

m m

speek

(5.2)

61,000

(24.0)
(9.6)

356,000

advisor

1,208,000
719,000

97,000

(10.0)
(15.4)
(9.7)

282,000

(11.3)

3,370,000

182,000

99,000

(7.1)

167,000

133,000

Northern Insurance

99,000.

—

Aetna Insurance

:;
'

merger.

;

1,873,000

increasing

investments.

attempt is made here

May

•

1956

Naturally,

first half portfolio gains were of im¬
those companies whose investment phi¬

losophy commits them mainly to equities, showed the
best gains in
this department;
viz., the two America Fore companies and In¬
surance
Company of North America." But even so, "St. Paul Fire
&

Marine

did very well in the
light of their heavy foldings of
state, county and municipal bonds, the markets for which have not
been at all favorable.
Indeed, the wonder is that a company with
such a
preponderance of high grades was able to show over
$4,000,000 in portfolio appreciation. Continental
Casualty, also a
holder cf,
proportionately, very large commitments in high grades
(as is something of a requisite for a unit whose
principal lines are
what Continental's are) turned in
a good
showing.
•• ''
But as has already been
pointed out, a general bear market
would quickly cause much or all of
this portfolio improvement to
evaporate; hence, the informed investor is justified in
considering;
it somewhat
transitory and not sufficient on which to base market
price. Statutory underwriting results, on the other
hand, are, plus
or
minus, the main dependence of the company for its
plow-back
over the years;
rarely does it leave t e business as a
dividend,
except when capitalized to disburse a stock dividend.
,

improbable that increases in dividends will be of

portance

spite

investment income.
better

for

perhaps

the

numerous

sizeable

im-'

improvements

Volume of business continues to be
somewhat
a

majority of companies

that

the

Ameri¬

"less

grow
as

and

business,

work

the

free

economy, will
less pronounced"

government and labor

hand-in-hand to smooth

peaks

and

valleys

that

marked the economic roads of the
past.
'
As

petitive

result, the system of com¬
enterprise in the United

States—known

people's

talism—will continue

hand

upper

the

capi¬

hold

Cold

erable.

the
War

against international Communism,
Dr. Nadler asserts.

More and more

dividends will

at .large
stockholders

either
—

corporate

accrue

ple

the peo¬

directly—as
indirectly as

beneficiary owners of corporate
equities
through annuities, life
insurance
policies,pension and
profit-sharing funds and mutual

institutions."

.,,/■

;

Dr. Nadler notes that the farmer

also will continue to prosper, and
that while farm income may be
down from

out

have

its

all-time peaks, the

standard of farm

"Tomorrow's

mechanized,

living is high.'

farm

—

skilled

will

assume

the

highly-

operation-

character

even more

than today

of factory produc¬
with farm
life
becoming
pleasant
and
even
more

tion,

comfortable than

can

now

en¬

visaged," Dr. Nadler states.
And

The achievements of the Amer-- labor
place
ican system in

under

reported,

and the better income from investments will
be Utilised to finance
the increases in volume.
1
-.
,

„

Wendell

are

^
&

0
Co.,

Kimball

Witter,
r-resment
President;
Barth

Con¬

John

also

ever

evils may exist."

-V:

■

Seci

people's capitalism
and

places wealth

the

ownership of the means
production in the hands of the
people;V
;,J''- '.*£■• v', U, ^■ /■'
"More and more, as the people
reap the fruits of the economic
gains made by their own system
of

Form Continental Inv.
DENVER,
Colo. —Continental
Investments, Inc. has been formed
with offices in the C. A. Johnsdn

Building to engage in a securities
business.

Officers,are Robert Leo¬

pold, President and Treasurer, arid
Gertrude Leopold, Vice-President
and Secretary.
Mr. Leopold was

nolly/Francis I. du Pont & Co.,
Historian; and Mrs. Beverly of capitalism," Dr. Nadler asserts,
formerly with Greenberg, Strong
Kihneman, Assistant Secretary.
"they will plough back into that; & CO/ N
Serving on the board of direc¬
tors for the 1956-57 club year will
be
Alan
K.
Browne, Bank of

America;

Harvey

Franklin, Mer¬
Pierce,
Fenner
&
E.. Kimball,
J.
Barth & Co.; Jesse M. Levy, Jr.,
Lawson, Levy & Williams; Col¬
lins L. Macrae, Wulff, Hansen &
Co.; Arthur W. Schiefer, Bank of
California; Ivan W. Wing, Wefden
&
Co.; and Wendell W. Witter,
rill

Lynch,

Beane;

Combined/Industries Inc.

Vernon

Witter &

Dean

Co.

V;;:...

Offers

///

//,i.'/,/,'^

300,000 SHARES
OF

COMMON STOCK

Hardy & Go. Offers

;

Investment Course

square

needs

The

vestors.
of

conservative

course

will

in¬

consist

nine

sessions, to be held at 8
Tuesday
evenings
in
the

Hotel

Vander'oilt,

beginning

Inc.

Inc.,

Delaware

corporation, leases 24,009

33-01 Far Rockaway Boulevard, Edgemere 91,

N. Y.,

its wholly owned subsidiary, Combined Industries,
(of New York), it manufactures and s'-lls wrought iron and

tubular steel furniture and such other functional items as coat
racks, record and magazine stands, towel hangers, shoe racks, bra¬
ziers, work horse and decorative pieces.
The

Offering is made solely through the Offer¬
ing Circular which may be obtained without obli¬
gation on your part by mailing the attached to:

Sept. 25.
Samuel

Industries,

feet

^pF $1.00 PER SHARE

where through

„

the

AT A PRICE

Combined

Hardy and Co., members of the
York
Stock Exchange, an¬
nounced they are offering a fall
investment course specially geared
New

p.m.

have

and

retary-Treasurer;

and

number, of the

the

J-farth *

parenthetically
periods analogous.

underwriting results had become unfavorable
did insurance stock prices.
: ^
f -V <: "
/-

schiefer, Bank of California;

add

to make the two

Govern¬

member

year"

Turkish

Science

Vernon

T/?et °f ¥ imsi sizeable
portfolio valuations and a?d

But back in 1927

wlIliJI,
Witter

Dean

th^%Ul1

from

the

meeting

be recalled by some that fire insurance stocks
(very
stocks had at that time acquired a
good standing
investors); topped out in 1927 and never did go otfHo

sharply

"Dollar

■

may

gains in income

wide¬

means

production, primarily in manufac¬
turing industries, will be consid¬

casualty

face of the

Nadler

natural

promises of the totalitarian lead-,
note.
///
V:
-4 ers," Dr. Nadler declares. And, he<
The club's newly-elected offi¬ says,
this
great
economic
and*
cials who assume office with this social progress will go on because

(

Marcus

re-

ustment,

industrial economics writer of

1,539,000

(6.5)

Twentieth Century

d j

consequences

spread ownership of the

people's capitalism
winning a better
in the economy, he con¬
can Geological Society.
creating this high
He is the author of "Design of standard of living, without mak¬ cludes, adding that "the growing
ranks of responsible labor leadeni
a
Petroleum Law" and "Turkey, ing inroads on the rights of man,
are working to correct what¬
An Economic Appraisal," and is surpass by far "even the wildest

1,970,000

;

(16.0) V-

178,000

Distorted because of

(9.3)

•

the

being

Political

489,000

Glens Falls

Pe¬

Royal Asiatic Society, East India
Association, American Academy of

(6.1)

ment.

12,657,000

43,000

Fireman's Fund

portant size..

Brahrain

University of California, in addi¬
tion

446,000

;

3,049,000

while

Fund Economic Survey of
Turkey
and a Regents' Professor of the

4,101,000

(7.5)

Fire Association

coming

periods of

Thornburg is a trustee of
University of Baghdad, Iraq.,
Chairman
of
the
Foreign
Pe¬
troleum Policy
Committee, former
Vice-President

Nadler

says

Wendell

rector

Agricultural Insurance.

President

472,000

Federal Insurance

that

Club

Hanover,

Dr.

policy

The

Mr.

.502,000

and ;

distributed

Middle-East
,

published

the

(9.4)

406,000

Continental Casualty

Witter

trated

"People's
Capitalism,"

the

22,510,000
r.

165,000

Standard Accident

u s

study

Island,
Bahrain, Per¬
sian Gulf, will

992,000

•

Fidelity & Guaranty

Maryland Casualty

with

31,000

Seaboard Surety-.--

few

A'S

(10.9)

125,000

i11

a a n

105,000

St. Paul F. & M._

troleum Co. and California Texas
Oil Co.
He is the Research Di¬

Pacific Fire

U. S.

port

Witter, Dean Witter & Co.

23,202,000

ever-increasing part of

these fruits in the form of invest¬
..

Nadler,

whose

home

Bond

343,000

S t,-.
'

system

future, Dr. Marcus ments."
\ /
V'-V
-"v ' '
/
consulting economist to
In a major chapter of his
study,
The Hanover" Dr. Nadler
analyzes, the changing
Bank, pre¬ ownership of the means of
pro¬
dicts.
duction, predicting: >
;
In a 32-page/
"The

Thorn¬

burg,

21,966,000

1,183,000

New Amsterdam

setback in the

problem area, a subject he is well
qualified to discuss, according to

$2,331,000

Fidelity Phenix—.«.-.-»,..«
National Union_

America's steadily-rising stand¬
ard of living will suffer no
serious
-

89,000

of the

Francis.

Wendell

24,000

Continental Insurance

"'"Mr.

V; ■4\r-'':js'

surpasses by far the wildest
promises
by totalitarian leaders.
^

•

Colonial

Room

to behave
poorly. This is because the market for them
usually
follows underwriting results. After
all, the underwriting portion
of the business is
the insurance
company's primary function; and
then, too, bear markets in' securities have a
way. of erasing in¬
creases in asset
valuations.
r

Club,
17, in

Sept.
the

prices have continued

Increases In

made

F rancisco

Greenfield, invest¬
.advisor, will conduct the
course,
which will include such,
topics as security analysis, invest¬
ment media, mutual funds, how to
read
the
financial
pages
of
a
newspaper, and how to interpret
the tax laws as the.y affect his in¬
ment

NATIONAL

First National City ;

Bankers

.Bank of New York

Kenya

BANK

INDIA, LIMITED
the

Government

Colony and

Head

Office:'

West

End

Bishopsgate,

London,

Circular

ort

Request

Laird, Bissell & Meeds
Members New
Members

York

Stock

American

Stock

120 BROADWAY,

NEW

Exchange
Exchange
5.

Bank

Uganda.

Zanzibar,

Stocks

come

2.
Branch:

and

in
-

Capital
Capital

Fund-

also

this

similar

said.

Somali-

estate situation.

than

year,

_£4,562,50O

;

250

adults

CF-9.20

Beaver

in the spring
the investment firm

undertaken

Send

Name

Address

(Special to The Financial Chronicle)

BOSTON, Mass.—John M. Sul¬
B.

has

New York

Street

j
.a

5, N.Y.

course

Joins B. C. Morton

livan

,■/

BOwIing Green 9-7841

enrolled

£2,851,562
_£3,104,687
The Bank conducts every
description of
banking and exchange business
Trusteeships and Executorships
Reserve

and

D. LEVINE—.

Underwriter

become

C. Morton &

connected

with

Co., 131 State St.

Offering Circular of COMBINED INDUSTRIES, INC.
*

Protectorate.

Authorized

Paid-Up

Telephone: BArclay 7-3500
Bell Teletype—NY 1-1248-49 (L. A. Gibbs, Manager Trading Dept.)
Specialists

E. C.
(London)

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon.
Burma. Aden. Kenya, Tanganyika.
-

land

YORK

Uganda

-HAROLD

•'«_|

City and

State•*•*#••##••»♦#*•'♦•••♦•••••••••••■**|

Telephone

Financial Chronicle... Thursday, September 20,1956

The Commercial and
24

(1200)

—the Nile dam is a

Foreign Policy at the
Crossroads: Palyi

white settlers,
the

same

They

all

Nuri

are

even

entirely in the
pocketbook, had to take

dictatorship,

West's

S.,

the

Cambodia,

equivocal stand on the
Suez question, notwithstanding its

But take the case

jealousy of Egypt's ambitions. The

The

holds for Vietnam and

being prom¬
join the
proper side of the Iron Curtain,'
or even without joining any side.?
it

former

obvious.

should

also

Yet,
public opinion in Iraq is
vehemently in favor of Nasser,
also ready to join the rest of the
Arabs in a drive on Israel. The

Problem

wards

perpetual

Washington,
to
from London.

from

extent

lesser

That South Korea and Taiwan are

pendence (which they understand
to include the
right to rob the
ised

subsidies

colonies
boomerangs virtually everywhere.
the

Courting

bill of ideologi¬
cal goods: that they are eititled
to a high and rising living stand¬
ard as well as to national inde¬

now

Thailand.

same

originally 1 by, Britain 7 (against
Turkey - in- World
War I)
has
reached into such depth of Mos¬
lem

mass

the

Christians

very

that

psychology

other

and

Arab

the

Westerners

have to go along.

;

■

even
pro-

World

undermined

War

and

Istaqual

driving in

and

the

between

area

the

same

Indian

The

been

keen

the

Suez

by the British has had

the effect of

break in the dam—

only

they

productiv-^

Unfortunately, their

MH:
' ''

,w>*

savings,
entrepreneurs,
techni- ;
cians, and educators. V None are J
available, kept out by lawlessness,
prejudice,* corruption, i ■indolence,
and inflation.
On top of all that,.'
the underdeveloped economies areli
mono-culture

77^■:'.■'/

evacuation

Canal Zone

has

observer:

Swiss

Atlantic

the

Ocean

succinctly summed

anti-French

What is brewing in this

direction.
whole

ultra-na¬
Morocco is

ity does not rise in proportion, or1
not at all. To raise outputs takes

the

her

"the

rebels.

tionalist

Welfarism—is
pushing them into bottomless-ap¬
the

received

just

Algerian

powers—their moral and fi¬
stamina

has

Tunisia

sovereignty; before the treaty is
even
formalized, she is demand¬
ing the" withdrawal
of French
troops in order to support the

propaganda and in¬
trigue were instrumental in fo¬
menting colonial revolutions all
the way from China and Indo¬
nesia
to
Egypt
and
Morocco;
American pressure on the colo¬
nancial

consequences

show up to our greatest detriment.
J-

American

nial

The

peasements.

sponsored

movement,

Pan-Arab

channel through which to draw

from the French in
to the Israelis in

Arab

In reality, that pact
nothing more — and
fully recognized by

competent British observers—than

The

tives the identical

foreigner).

Maghreb

this

the

seems.

amounts

anti-Zionism. This
now
to
all

Palestine.

folds

like Iraq, safely in
Bagdad Pact, or

country

the

case

extends

sentiment

"package," another
modern miracle man: the propa¬
gandist. Whether from the West
or from the East, he sells the na¬
the

with

fused

disappointed
in point
—causing violent hatred. Among
the Arabs, the anti-Western trend
tions which must be

first page

Continued jrom

type,

,mm&m

helplessly exposed to VtheV
widely
fluctuating
commodity prices.
: 'i '
' ';/<7
less,

vagaries : of

Courting

Underdeveloped

the

v <

This

is, in a nutshell, the socalled
underdeveloped
world
(with exceptions here and there).
This is the world we are trying
One of the

to redeem.
of

oms

win

foreign

our

this

world

side

the process, we

Malting Co.

;7.i7

E. H. RUSSELL
President

Minnesota Linseed Oil Co.

for

co-operation in the cold war.

Rahr

—

policy

our

W. C. MACFARLANE

President & General Manager

Minneapolis Moline Implement Co.

Vice President

basic axi¬

STUART F. SEIDL

CLARENCE J. SALL

John Morrell & Co.

apply several stra-

tegems, to wit:

Displaying
—that

our

wealth and power
enemies

makes

gen¬

erating fear and envy;
Pretending to be guided by pure
,

humanitarianism

with

ul¬

motives, as attitude that; 7
irritates everybody;
: - < •
Preaching human rights, equality,
and
anti-communism, w h i c h
mean
to the-utterly 'poor and!.; >
ignorant
natives -little- more;': terior

; .
than nothing;, 7
;
7 Offering dollars—trying to bribe,-. V,

them—and by an aid that could j

not

;

^Lj'L'E PHILLIPS

HENRY T. RUTLEDGE

toktfnore* thanwthes

amount

•.

>" ■$!

;

President

7 *

President

;•••

j.-

even

;

7
I

;

in -the

drop

bucket
largely

not

were

Northwestern Bank

National Presto Industries, Inc.

Building Co.

-wasted or .used ^oi? .armaments; 7r
(against
each pother,V iL7not .7.
against the; West),''in addition4- V

>7*I

-.7

A. I. G. VALENTINE ;
'Manager So. St. Paul Office
Swift & Co. * '

J, *

' '

''
V

-js

V The last point has the most ne"farious

ff
i

arousing
suspicions " about V'
"strings attached''; - ^ -7 - Encouraging a nationalism that is
directed primarily-against the
:
west.
V. 7' ' 7

■

> -

■

;

PAUL B. WISHART
\ "1
Minneapolis Honeywell'
7Regulator Company

President

proverbial

7 Our

consequences.

anti-

colonial

propaganda
is
rooted
in the American tradition;
for another part, in the naively
literal interpretation of the spir- itual heritage of Rousseau and the 7
Jacobins—just as Bolsnevism 'is.
But the philosophical
aspects of the principle may be left aside.
By
preaching
equality
we

7 partly
,

D. C.

includes

their thesis

it:

fiscation

the

Chairman of the

Trane Co.

JOHN C. ALEXANDER.

D. ATLAS

President

Works Manager

Board

Cold

Spencer Kellogg & Sons

Whirlpooi-Seeger Corporation

Spring Granite Co.

con¬

properties, a
popular pastime among the
underdeveloped. They prefer the
foreign

most
■

WALTER G. SEEGER

MINARD

President

the Russian position
since that is exactly
their doc¬
trine. And they go one better on
strengthen

who

Bolshevists

have

THESE

invest¬

BUSINESS

...

ments to lose.
>

American

■

prime

anti-colonialism

source

Americanism.
or

I concealed

tropical
sheer
*

European
To
Europe,

control

areas

over

not

5.4%

open

certain

matter

anti-

imperialism, whatever that
("Imperialism" was a good

NSP's

means.

word
a

the

Victorian

fighting word today.)

the

colonies—or

—mean

it is
Some of

controlled

formidable

areas

Africa

financial

laid

and

Eu¬
But the

ex-colonies

doorstep.
give - us
no

whatsoever.

rope

our

the

;

credit-..

side, we
have succeeded in weakening our
Allies and arousing their resent¬
ment; on the other, in creating in
one

the Middle and Far East expecta¬

~Yet it accounted for only six-tenths of one percent of o\
gross

revenue

sponsibility for the revolt of Asia
North

straight years oft

growth not dependent

any

Here

are

24 of the 27

Northern States Power

sified

businesses

hundreds of
bills in

—

large industry

one

largest

users

of electricity from

Company. A cross-section of diver-:
nationally

many

known — they

sell,

products and services; and all paid electric

excess

of $100,000

nearly three-quarters of

last

year.

The largest added

million dollars to

our revenues.

income.

' 7

;

In fact,, all 27 made up

commercial stakes to Europe. Not
without reason, the ultimate re¬
and

days;

revenue.;

■

only 5.4% : of

\77■

•

•;

■

total

our

These
our

The

cus|

growth and diversity.

highly diversified businesses account for 22.2% o|

electric

revenue

grog

C*.. '• f

Some 1520 other large commercial and industrial

tomers also contribute to NSP's

revenues.

major share
comes

from

(more
our

than

42%)

our

electrij

steadily growing residential-

Volume

184

Number 5570 ;

The Commercial and Financial Chronicle

;

(1201).

less the

evacuation as such, per¬
haps, than the circumstances un¬

withdrawn

der which the British withdrawal

The

arrived at.

was
once

forced
draw

from

has made
The

The fact that the~

powerful British nation

was

Arab state to with¬

its

strongest

fact

that

the

local

the

Suez

revert

Canal

concession

Egypt.

Observing
the spot one
ulti-r

cott

measures

the

emotions

mobilizing
of

zone

Zionist

Western

out of the Middle East.

tangible
wealth

mean¬

prize

the

will

powers

The very

the

area.

time the British troops have been

them

Eden policy of perverted appease¬

ments, laying down the law, and
enforcing it.

fanning

Arabs

and

That is the policy which

against every¬
In the turbulent

anti-Western

excitement

and

the

and France

low

Pasha

Ottoman

the

un¬

There
which

only

one

restore

common

sense

calling

expense

Sultan,

the

Soviets?

ate

objectives—and

out

Dulles-

peasers

not

this

of force

time—

will

of the West.

king,

the

sheik

Buddhist President,

himself

arms,

use

prestige

No Moslem

throw

viet's

justified

restore

nor any

will

into

scream

the

So¬

they may.

Harriman Ripley Group
Underwrites United

that the*
immedi¬

will

"stabbed in the back"

in the Middle East:

halt

the

words, assuming
Allies accomplish their

modicum

with

other

method

Britain

determined to fol¬

existence

to
.

are

be the outcome in terms of the
East-West struggle? ' The answer
is that short of open Russian intervention--which * is * being truled

Algiers as well as in
Egypt. That it is the only sensi¬
ble policy in the short run, can
be taken for granted.
But how
does it fit into the picture of the
Cold War and of the peaceful co¬

anti-

great

realized.

oil

The agitation against Israel, and
the most recent protest and boy¬

the

dertaking of re-establishing Arab
unity, as attempted in the 19th
century by Mohammed Ali and
the

the

France

serve

means

thing non-Arab.

Ibrahim

drive

against

Algeria

most, effective

account'

mate aim of the Arab nationalists

which, on the whole, favored
Egypt—also has opened new hori¬
In the

assaulted

can

tion

policy.

the

the development on
have no doubt that the

powers did not,
conflict, work together,
but partly against each other—
this, at least, was the interpreta¬
tion given the American media¬

to Arab

Aden, on
Cyprus
are

this

zons

after

the
Bagdad .Pact.
positions in Jordan,
the Persion Gulf and in

latest,

two

principal Wesern
in

Iraq

British

nationalists, encouraged and sup¬
ported from Cairo. In 1968, at the

position
profound impression.

further

from

conclusion

by the ap-

Aircraft

in Washington—what will

Offering

United[ Aircraft Corp. is offer¬
ing

to .its

record

jright

stockholders

common

Sept.

- on

17,

1956

the

for . 318,098
shares of preference Stock, 4%
series.of 1956 ($100 par value) in
the ratio of one preference
shares
for each 16 shares of common

; stock held. The subscription prfce
is $100 a share.' The offer will

•

expire at 3:30 p.m. (EDT) on Oct.
2; 1956". The offering is being un¬
derwritten by a group

Harriman

The

Ripley &

preference.

headed by

stock

•

Inc. '

Co.,

con-

vertible prior to Nov. 1, 1966, un-

less

THOMAS L< DANIELS

President

;-"-0

JOHN B.

Archer-Daniels-Midland Co.

;; rate

R. W. ELDRED

HAWLEY, JR.

President

777'

General

Northern Ordnance Incorporated

previously

HENRY E. KUEHN

Vice President

Manager

redeemed, 7 into
at

the

conversion

1.25

of
common
stock for each share of preference

; stock.

King Midas Flour Mills

proceeds from the sale of
preference
shares; will
be

the

added

7<7;;

w-;

Net

•

Armour & Co.

stock

common

•

general

corporation and

funds

the

used

part for
.the repayment of short-term bank

borrowings of f $27,200,000 which
incurred to finance increased

were

inventories

and
other
working
requirem"ents7" Tr"is" "ex¬
that the balance, together

"capital
pected
with

other funds

tion,

will

the

corpora¬

required for addi¬
working capital and for-

tional

the acquisition or construction of
additional research, development.

;and production facilities, includ¬

ing miachine tools. 7 The
tion

corpora¬

may require funds,
to fhe proceeds of

in addi¬
the sale
preference shares Currentlybeing offered, for working capital
or other
purposes, in which event
it may effect additional financing.
tion

of the
JOHN E. CARROLL
.

•< ■

HERBERT P. BUETOW

ELY MEYER

'k:•>'.■}{ President

President & Treasurer

yc7

American Hoist & Derrick Co,

►v

/.ji

DONALD C. DAYTON

iPresident y
Mining & Mfg. Co.

Minnesota

Sterling Paper & Pulp Co

y> President

...

Dayton's

The
^

corporation

retire" 3%

required

1956 preference

the;

'■shares outstanding on Nov, 1, 1965

^annually in each
v.

Unfilled

ment

letters

thereafter,

year

orders

and

intent

Govern¬
amounted

$2,100,000,000

;'? Sales

June 30, 1956.

orj

during the

taled $697,922,000

amounted

1955 to¬

year

and net income

$31,065,000,

equal

after preference dividends to $6.14

share-

the

common

outstanding at the year-end. For

■ml

:
■

the

rsonths

six

ended

June

30,

1956 sales aggregated $458,471,000
net income was $20,556,000,

and

the
.

FRANK

ELMER ERICKSON

WAYNE HUFFMAN

A. COBB

H. A. BULLIS

Chairman of the Board

Factory Manager

Vice President & General Manager

Northwestern Refining Co.

U. S. Rubber Co.

Northwestern Bell

President;'7y 7

General

Telephone Co.

latter

stock.

1955

For

sales

common

Mills, Inc.

after preference
a share on the

equal

dividends to $4.06

were

and net income

$3.02

first half

$359,110,000

$15,303,000
share.

per common

United

the

was

Aircraft

one

largest^ manufacturers
United

CUSTOMERS.

rural sales.

This is* of course, highly

remainder

our

Drexei & Go. to
Admit New Partners

diversified—hence unusually sound—sources: industrial,

sales and

PHILADELPHIA,
&

revenues

parallel this well-balanced diversification.
;

Thus, independent of

years

NSP

revenue

any

single industry

has recorded' twenty-two

growth. Ask

your

OUT

Annual

vents

using pictures of corporation officials.

Report.

or group

consecutive

secretary to write for

* Company policy of three of

STATES

NORTHERN

our

customers pre¬

POWER

COMPANY

Minneapolis 2, Minnesota

Serving

thriving

area

in Minnesota,

Wisconsin and the Dakotas with

electricity and

gas.

Pa. —Drexei

Co., 1500 Walnut Street, mem¬

bers of

customers,

the

desirable income,

income stems from unusually

commercial and other sales. Our gas

aircraft engines,

craft
equipment,
including airconditioning; systems,
refriger¬
ation
units,' jet-engine
starters,
electronic and hydro-mechanical
fuel
controls, hydraulic pumps,
and pneumatic valves.

since it is least sensitive to business fluctuations.

The

7 propellers, and helicopters. It also
manufactures a wide range of air¬

REVENUE

O OUR

States

the

New

York

Stock Ex¬

change, on Oct. 1 will admit James
G. Couffer, George de B. Bell, R.
Schuyler Lippincott, Paul F. Mil¬
ler, Jr. and John H. Remer to
partnership.
Mr.
Couffer
will
make
his
headquarters
in the
firm's New York office, 30 Wall
Street/
:
„

that
for

.4'

The Federal

handling

gram
fense

assigned to any theater of op¬

Health

Serv¬

warfare

biological

Civil Defense Ad¬

and

organize chemical de¬
groups, we would have a

vast

network

tion

the

for

technical

dissemina¬

information

ministration-has; similar labora¬ chemical. warfare in peacetime
tory capabilities in the field of and vital assistance in a national
.
biological warfare through dele¬ emergency."
Such
groups
or
laboratories
gations to the Department of
should
consist
of
chemists and
tablish and staff a network of Health, Education and Welfare,
the speaker said, noting that "the chemical engineers with a wide
cooperating laboratories. 1
S. Public Health
Service of variety of backgrounds, since the
-Colonel Francis B. Stewart of U.
Battle Creek, Mich., consultant in that department has expanded its problem of c hem ic a 1 warfare
defense may prove complex, Colo¬
chemical and biological warfare Sectional Research Program to in¬
.

„.

defense for the Federal Civil De¬

clude

fense

He added that there are about 50

Administration, made this
request at a symposium on air
pollution, sponsored jointly by
units of the Society and the U. S.
Army Chemical Corps.
; „

4 Create Laboratories Now
"Laboratories having the neces¬

capabilities to

into imme¬

diate action in the event of enemy

attack

essential," Colonel
Stewart emphasized. He said these
laboratories "must be in a position
to give to the appropriate authori¬
ties, both at state and local levels,
are

information

the nature of the

(chemical) agent used and make
recommendations
nation and other

ures."

added

decontami¬

protective

meas¬

the Army
has such laboratories "which can
He

that

biological warfare defense."

laboratories scattered in 40 states,
Hawaii and Alaska.
c-:>

Praising

some

150

nel

Stewart

said.

suggested

that the initiative in establishing
such a program at the local level

might well be

the

responsibility

analytical pf the analytical chemist.

chemists for their "important con¬
tributions" to the work of the Na¬

Steps Are to Be Taken
.

tional Defense Research Commit¬
tee in the years from 1940 to 1946,
Colonel Stewart said their work
of

He urged

mustard,
is

41-

eral

(1) Contact their local

tinued. 4 "Such
centers

interest

been

ignored.
nately true

This ,is

pointed out that the plan¬
ning assumptions of the Federal
Civil

Defense

Administration

laboratories

across

scattered

the nation.

(2) Assist with the test

opera¬

Chemists Are Well Dispersed
"These chemists have since scat¬

universities and in¬
dustrial concerns," he pointed out.

has been

for

partner

Charles

the past seven

confusion

increase

defensive

)■

.444::

and

44,$ ■-'•''■l

ciety the full resources of FCDA
—in

equipment and technical in¬
an

Saltzman

appointed

the

staff

the

New

Exchange, having been
Secretary of the Ex¬

change in 1938 and a Vice-Presi¬
dent in 1939. During World War
II he was on active duty in the

Army, serving overseas for nearly
and being appointed a
brigadier general in January, 1945.
He is now a major general in the

adequate

four years

against chemical warfare

in the event of enemy

was

Yotk Stock

measures,

Colonel Stewart offered the So¬

attack.

active Army Reserve.

Johnson, Lane, Space

(3) Be available to answer the
layman's questions related to

"This means that the potential for

Mr. Saltz¬

ar,

a n

impede

using the kits.

tered to many

former

biological agents years in the
private investment firm of Henry
will be used against humans."
From 1935 to 1949
These latter weapons would be Sears & Co.
chemical

tions of the chemical agent detec¬
tor kit, instructing unskilled vol¬

unteers in

Point

man

will be relied upon as the means
of gaining the- military decision,

carried

widely

1957.
graduate of

Rhodes Schol¬

"Although nuclear weapons

defense

gen¬

partner

and

be¬

to
a

West

Chemical and Biological Weapons

state:

1956

Jan. 1,

best fit

out

firm

eral

even among
our
chemists and other scientists."

formation—to achieve

into it.

the

come

unfortu¬

with

Sept. 17,

study the table of
organization to see how they might

and

exists,

thermonuclear

asso¬

ciated

con¬

Charles

that

announced

Saltzman will
become

and fallout. The threat,
and
from chemical attack has largely

detection, identification and
analysis of chemical warfare
agents and related subjects was

services

Street, New York City, members
have

defense

taken,"

Goldman, Sachs & Co.
Goldman, Sachs & Co., 30^Pine
of the New York Stock Exchange,

gen¬

threat

civil

around

there

the

weapons

state

civil defense directors, offer their

measures

and

•

that

the

attack

enemy

doubt

apathy among

public

said.

steps:

great

used

chemists to take these

Chas. Saltzman Joins

special kit had been de¬

"There

only a small fraction of these
150 analytical chemists would par¬
ticipate in the civil defense pro¬

in the

erations."

Public

"If

;j To provide an integrated defense
against possible chemical warfare
attack on the United States, the
nation's analytical chemists were,
asked at the American Chemical
4 Society's 130th national meeting
Sept. 15, at Atlantic City, to es¬

the

agents.*

analytical chemists to help create laboratories

thronghont the country, prepared to act immediately
event of enemy attack.

He said

veloped to detect three types of
war
gases—nerve,
blister gases,
such* as
mustard, and nitrogen

ice's Sectional Research Program

Urged for Entire Country
Col. Stewart asks

of chemical warfare to the nation.

handling of chemical warfare
agents is probably more dispersed
throughout the United States than

Chemical Defense Laboratories

sary

Thursday, September 20,1956

The Commercial and Financial Chronicle...

(1202)

Twice
has

World

since

served

the

War

government in

chemical warfare.

developing

capability

the

Sell

Scripts) Stock

Washington while on leave from
his
business, once as Assistant
Offering of 360,000 shares of
Secretary of State and once as
Colonel Stewart cited the threat Scripto, Inc. class A common stock
Under Secretary of State for Ad¬
was
made
on- Sept.
18 by an
ministration. He is a director of
underwriting group
headed by
the Milbank Memorial Fund, the
Johnson, Lane*: Space & Co., Inc.
Seamen's Church Institute of New
Of the total is_sue, 40,000 shares
York and the Foreign Policy As¬
were offered at $6.67 % a share to
sociation and a trustee of Barnard
certain officers and employees of
the company, and the remaining College.
320,000 shares together wiin sucxx
number of the 40,000 as are not
bought by the officers and em¬
ployees of the company, were of¬
fered to the public at a price of
$7
a
share. The
offering was
Halsey,
Stuart
&
Co.,
Inc.,
quickly, oversubscribed.
Hornblower & Weeks and William
Net proceeds from the sale of R. Staats &
Co., as joint managers*

Southern Nevada Power

51/2% Bonds Offered
,

the

common

will

used

underwriting group, yester- "
(Sept. 19) offered $4,000,000

by the company to finance plant
additions
currently under
con¬

day

struction, for new machinery and
equipment
and
for
additional
working capital through reduction

first mortgage

of current

bahlqloans. '• •'A

•

bid

mecha#ipal pencils, foun¬
ball:>pqint pens, "liquid

States/ 44 '■*

the

that

sales

come

•

$15,167,452 and
$1,293/026. In

audited

statement

and net

were

in¬

Nevada
Power
Co.,
principal executive office
in Las Vegas, Nevada, furnishes
electric power in Las Vegas and
North Las Vegas, Nellis Air Force
Base, a part of the City of Hen¬
derson,
and certain unincorpo¬

—

Wal-

& Co., InC., 265 Montgomery
Street, annouriced; that Daniel J.
Cullen, Executive Vice-President,
San Francisco,/has been admitted

ston

rated residential areas in

Stock

•;4rv\ .•'v"V

'.V V

•

part

ATHENS, Ga^Lewis L. Scruggs

the Staff of Slay ton &

Company, Inc., ,1708 South Lump¬

4
*>;'

.....

;

•

With Hamilton Managem't
(Special to The Financial Chronicle)

Donald J,
Decker has become affiliated with
Hamilton

power

its

chasing
•

Hoover

power generated at
Dam
Power : Plant,

elsewhere.
Fof the

the
or^

J,
/
,
;
months ended June
.

30, 1956, the company had operat¬
ing revenues of $5,717,299 and net
income of $712,005.

BOS T O N, Mass.

generating

erating plant, and in part by pur¬

(Special to The Financial Chronicle)

kin Street.

Clark Station steam electric gen-;

$ Slaytoii^Co. Adds
has joined

the Las v

Vegas vicinity. The company ob¬
tains its electric energy supply in-

membership, qn the Midwest
Exchange/' Chicago.

—

Corpora¬
tion, 127 Tremont Street.
Management

-•

with its

Midwest Ekch. Member
Cal.

regular redemption prices

Southern

4".44 ■'

FRANCISCO,

bonds will be redeem¬

accrued interest in each case.

SAN

approxi¬

ranging from 106.50% to par, and
at special redemption prices re¬
ceding from 101% to par, plus

inconf$':£tt $790,763.
■

construction

1956

The company estimates
additions to its utility

new

able at

shown at $8,143,358

•

the

an
un¬
the Jan. 1,

for

gross

The

j.6;, 1956 period, total

1956 to June

net sales

net

plant during 1956 will
mate $9,502,000.
"
'

yea&i$55« the company
subsidiaries had total net

its

cost

program.

For the
and

proceeds from the financing
will be used by the company to
retire present bank loans, and the
balance will be applied
toward

am£-territories of the

states

United

of 98.26%.

Net

and

pencils, -Md, through a sub¬
sidiary, cigarette lighters.
The
company also-Ksells pencil
leads
and erasers. Thb? company's prod¬
ucts
are
distributed throughout
the

Co.

was

lead"
V; v.:-

Power

mately 5.43%. Award of the bonds 5
won
by the underwriters at
competitive sale on Sept. 18 On a "

Scripto, IncJ^WKh its * principal
place of business in Atlanta, Ga.
is engaged in the manufacture and

tain

Nevada

bonds, 5%% series
C due Sept. 1, 1986, at 101% and
accrued interest, to yield approxi¬

sale of

Southern

With Federated Plans
(Special to The Financial Chronicle)

TAMPA,

Fla*— John

Dun-

wody and Richard L. Stouffer are
now with
Federated Plans Inc.

Volume 184

•

i"f,

Number 5570

The Commercial and Financial Chronicle

*..

(1203)

'■

••VXj.a

vr.,:,v,-., '

*'#.(

#■ III

+ <,. 1

t«V«4

*,« 4

...

'V"

J.y,,

"V'V

v.,
/

"•

•

s:\ i;

■u

■'

;;

4;/,
■(!

V -V'V U
'

:Vl
-rr

vu,v;

*•

■1

*y'x
V:

-;>>

C.-N":

-■■c-N'c-r

-j;.> y.'i;!:
''f''.,

W::
.i''

Q-

from t

Atoms from oil and sand— combined and
us

new

cals called silicones. And

of the fastest

heat. Silicone-insulated electric wires will last for years

rearranged

by modern science—have given
branches of the silicone
known

stance

one

amazing

family tree is

chemi¬

•

•.

■

•

*•

•.

•1

-.-i

■

NEEDED

of heat and cold. An

answer was

under

is not affected

sub-zero temperatures. Planes that fly in

the intense cold of the

stratosphere have

made of silicone rubber. And that

pliable and form

when it's silicone rubber.

many parts

steam

iron

tight seal

high temperatures, it

pressure

of the many

useful

products that silicone chemistry has created and im¬
proved in the past few

The people of Union
pioneer with sili¬

years.

Carbide will continue their efforts to
to serve

frees

Learn how Alloys, Carbons, Gases, Chemicals,

■and Plastics

you

improve

every

many

possible

way.

things that

you use.

Ask for

."Products and Processes" booklet A.

Union Carbide
AND

one

strip around the door

of home freezers will stay

EQUALLY IMMUNE to

is but

cones

REMARKABLE?MATERIAL

exposure to

ex¬

RUBBER

•

if:

highly resistant to

by oil and chemicals.

SILICONE

•

found with the

development of silicone rubber.
THIS

•

properties of rubber —that could stand
tremes

•

■

...

material-with the desirable

in weeks. And silicone rubber is

attack

unusual sub¬

silicone rubber.

•

INDUSTRY

under conditions where standard insulation would burn
out

growing

■

Rubber...

cooker and

never

can

seal

feel the

EAST

CORPORATION

CARBON
42 N D

STREET"

EBB

NEW

YORK

17,

N.y.

In Canada: UNION CARBIDE CANADA LIMITED,Toronto

UCOs Trade-marked Products include
Union Carbide Silicones

Bakelite, Vinylite, and Krene Plastics National Carbons

Dynei Textile Fibers

Electromet Alloys and Metals

Synthetic Organic Chemicals

Prestone Anti-Freeze

Crag Agricultural Products

Pyrofax Gas

union Carbide

llnde Oxygen

haynes Stellite Alloys

Eveready Flashlights and Batteries

Prest-O-Lite Acetylene

"--J

•-*

A.»\

••••..
•■rt

■

v"?'-r.

diiMlii.ii'i.'.

■A

■

5 i

;■

'B-l-

r.'

The Commercial and Financial Chronicle

(1204)

Our

public pension funds have, in some instances, been mak¬

thing.

Let

the :

world

the

Reporter

Reportedly, they are the principal buyers of the longer
along with Treasury investment accounts.
It is reported that a fair amount of money is being transferred'
from common stocks by individuals into the 2%s and 2%s of

hampering our other technological r
developments. Let us try this. It £

Governments

concerned.

Government

under

pressure,

new

The

ones.

accounts.

carry

due to the more favorable

yields that

Short-term funds

Continued

•;?:

Public funds

well

: ~

•

ing to advices, are the main buyers of the longest. Government
Issues, albeit in not too large amounts. Tax switching seems to be
a bit of more vigorous and some money is being taken out of the
equity market and is being reinvested in short and middle matu¬
rities of Governments.

■

v:.x

from 'page 15

critical problems of

atomic

power.

Many people have said and many

people

power

understandA that atomic
will never be at its cheap¬

est until the best chemical proces¬

High Yields

Non-Governments Attract Buyers

incorporated and utilized

sing is

fullest

the

Even

though the money market is as tight as ever, the higher
of/borrowing is bringing investment money into the picture,
especially as far as the more distant maturities of non-Treas¬
uries are concerned.'"The reception which has been given to new
offerings of corporate and municipal bonds has been encouraging,
although " it is still somewhat early to make predictions that a
bottom has been made as far as yields of these securities are con¬
cerned.
It is evident that money which would be going into the
stock .market" is now being put to work, in somevmeasure, in inter¬
est bearing obligations because of the attractive i.icome which is

fore.

available in

The

new.'offerihg^s of nortrGoverriment Tissues.

Also, it is reported that

for
the
very
reason
that they
bring chemical techniques to the

Research

for

equities and these funds are being reinvested in bonds, par¬
those in the tax exempt classification. According to
advices, individuals and those institutions lhat can ' use the tax
{sheltered issues, have been the principal buyers. of these secu¬
; .}
|
Savings Banks Turn to Corporates
>

Savings banks, according to reports, continue to be sellers of
obligations in not too large amounts. Some of this
liquidation is now being done in the more distant maturities and
;

Government

indicated

that

this

will

the

because the money can be used more

than

for

case

time

some

monies appropriated

the

various

reactor

projects.
for the sup¬
port of fundamental physical re¬
search, both chemistry and physics,
of the Atomic Energy Commission
is less than" $50 million per year.
This, as you know, is not a large
amount of money in terms of the
amount spent on power reactors
and the development of
atomic
power
of every kind. We can

■

but of

of this sort
inexpensive
in

programs

relatively

are

terms of the

ticularly

rities.

entire

program

anticipate, therefore, finding such
economical and worth

program
while.

come

profitably in situations other

Government securities.

A part of the funds which is being
through the sale of Treasury issues is being put.to work
by the savings banks in the new offerings of corporate bonds. This
is not exactly a new development because* with the advent of
higher interest rates, the savings banks were buyers of corporate
bonds.
However, the size of the commitments which have been

Homogeneous Reactor Required

released

Another

actors

demand
as

for

large

funds

Slowing Up

business

from

and there

as ever

and

are no,

construction

con¬

indie^tiQn^ ,yet

letup in these needs, which means that the pressure on the
money market is not going to be tempered.
This robust demand
from business and consumers is resulting in the economy operating
at capacity in spite of very tight money. The boom conditions con¬
tinue to rule the roost and with this comes the inflationary priceany

Wage spiral, which is not favorable
are

concerned.

far

On the other hand,

the kind that

rectified by

are

ing policies.

•.

late

•

1'I'"""

.'<•••.
'"V' "
~

reported

the

that

tax

Government

have

swops

[

cerned.

far

"'"!

A/''

are

and

PRODUCTS

—

-Top

"i-

•

—

United

West

York

Boston

REMARKS

—

UNITED
Sales

Akron

Los

CARBON'S
Services

'///-'■/■

a/Peacefiil/Gse already A

us bountifully for our
investment and interest in atomic

the

quick

For

bearing

Atomic

Power

atomic

other

immediacy

the

outranks

jobs

power

chemist

has

certain

definite

do.

of masses fof materials
J arid/ forf ;
of various analytical purposes by the I
the, dilution technique. Thousands of
the applications. have now been /made *

and

cost

have

research

in "the

and / f

.physical

committed

biological sciences, but tonight I •
program
which speak ,more -particularly *of the /
assumes that this job will be well
application to industrial proces- s
done. I am certain that this will sing: Dr. Donald ;E. Hull of the j
prove to have been sound plan¬
California
Research
Corporation
ning, but there nevertheless is a was in many respects a pioneer in j
very
real need to
interest the the application of isotopes to the
chemical fraternity in this task in testing of lubricants and fuels for <
the
Standard
Oil
order that it will be done.
Company of:
Although the solution of these California. He also developed the
usefulness of radioactive tracers
difficult problems is only a mat¬
ter of time, the method of solving for plugs of liquid fuel pipelines
them quickly is to encourage good so that their diversion at a par¬
ticular valve point could be done
men to work at them, and now the
principal difficulty appears. There more accurately at very consider¬
is
such
a
shortage,
relatively able savings of valuable crude and
ourselves

sense

speaking, of the highly skilled and
gifted chemists and engineers who
are needed to solve such problems
corrosion

the

that

the

lems

being seriously delayed
enough gifted people

not

available

are

particular
reactors
of "these prob¬

solution

because

The

homogeneous

types

work

other

materials.
In
addition, a
method of measuring the circula¬
rate for a fluidized catalyst :,

tion
bed

armament

There

several

are

people like Dr. Hull in this coun¬
try
developing
these
uses
and
daily

ones

new

appear.

them.

Atomic

the

developed by him and his

was

associates.

Isotopes Save Money for Industry

our

coun¬

that

estimate

present

during

over
lQO and
million /dollars

the

pos^s

year

200

,in

were

industrial. processing
the use of isotopes fbr i

is to his credit that

con¬

unnatural

and

the

fuel

problem

ele¬

their

dissolution

and

try. It is
the

our

chemical

self

the

such

the

g o n n e

considered

above.

homogeneous reactor is, of

a family of reactors
include anything in the

fluidized

dissolved

with

and

This

National Laboratory. The chemists

dollars

teaching

should

and

contribute
reactor

doing

can

the

research at
undoubtedly

problems

can

the

problems

And

year

billion*

itself

it?

see

prove

the

will

use

make

two

sources

true that every
material of nature, everything we

Universities

are

per

one

to be true. We can/
how- the further development A A

Tapping the Chemical Industry
These

exceeds

isotopes in industry!
these
preliminary
be explained to figures small..
' j "
solution

development

way

liquid

States.

nearly

know, everything with which we
deal in everyday life, can be made
radioactive in a, safe but easily

moving

chemical manpower that have not

without

yet been tapped for atomic powerj concept of Everyday Use of Iso-f
—the chemical industrv and the topes in "exempt quantities," use¬
university
faculties.
We
want ful but harmless amounts. Per¬

reactor.

both.

fixed
and

There

are

possible
homogeneous

many

the

and

with/or

the

Commission

reasons

We understand well the

why it has not happened
but the understanding

in the past,

investigating the

does

Chicago

Angeles

construction.

them and their interest excited.

variations

Virginia

i
*

energy! This, use is < Isofbpes,: ;Isb- *
topes is- the. utilization " of radio¬
active' elements" tQ^lajoeU.com¬
processing of irridiated fuel ele¬ pounds ? and ; material's so as to
ments
from
the many types
of understkhef; the * /mechanism/ of f
heterogeneous reactors now under chemical reactibnsf the* numbers r. *

saved

cost.

force

heterogeneous

happiness

more promising
But, speaking broadly,
homogeneous reactor is the

these.

chemist's
New

continuous processing of the fluid
fuel as it circulates through the

SALES
—

„

rewarding

the
chemical
with Atomic
Power
perhaps
the
most
im¬
mediate and pressing is the cheap
of .all

Finally,

with

conflict

the

OFFICES

problems associated

sibly

moderators

Building

Carbon

Charleston,

,Fuel

possible speed short of interfering

and

reactor,

chances

Isotopes

freedom

degrees

somewhat

fuels

EXECUTIVE

OFFICES

„

our

areas,

f/il' v'-/
We have

the

Oil

>the

critical

these universities

may

Brands

Crude

and

Gas

solve

•

certain

in being which next to tl*e first of
the Peaceful Uses, peace itself !is ?

Processing of Irradiated

Cheap

ful

Quality Masterbatches

Natural

•

particu- ;;
larly in homogeneous reactors and .
the
utilization
of. the
product v
Plutonium.
*
* *
*

have been solved.

in this way one avoids the waste¬

Synthetic Rubber

Rn-yt.own'

ability

involved in high tem¬

manufacture

Excellence

Dixie

and

-Kosmos
*

be- f
and t
problems •

interest greatly,
need% your skills

your

which have thwarted

Energy Commission
hopes that the Atomic Power Pro¬
gram can move forward with all

course,

Blacks

have
the fact remains
that it is difficult to proceed with
it until some of the chemical prob¬
lems involved in specific designs
best chance,

need
cause -

tories

The

Carbon

the
It

Memphis

reactor,

chemist

who

and

makes

will
it

work.

not. lead

that

feeling

has

occurred.

Considering the shortage of highly
technical
manpower,
it
might even be considered a mis¬
skilled

take

measurable

just

Use

Atomic

case

are

not be the

the

point

Britain,

Russia

States

are

seems

to be

now

and

the

heterogeneous.
a

where

being built in
United

There

clear to

now.

.f in this direction, and

even

though

However,

it seems
should be able

that

to have the

new

miracle

new

synthetics,

natural development -atomic power
do this. Let.Gs

any

the

etc.,

also.

Let

drugs,
and
us

tlpe

any

conflict be¬

far different it seems

not# unlikely that the people in¬
in

terested

the

Uses
ones

development

for

Isotopes may
who would other¬

wise

develop Atomic Power—or
it may be that the development of

have

the Peaceful Uses of Isotopes may

try to

supplement and interest people in

try and have every¬

;

Peaceful

people developing it. However,/

they

dustry

are

most of the reactors

from

prove

except possibly in the interests of
the

We
,

degree

chemists

the/

Isotopes and Atomic Power

Peaceful

divert

Power.

there is

case,

tween

important
work they do in the chemical in¬

This

itself may
important a

great

manner.

haps this in

opinion that a type of
homogeneous reactor will give the
cheapest atomic power in the end.

Technical

Outstanding!

•

way to avoid it that is ob¬
vious, and that is to v use the
homogeneous / reactor
principle.

COMPANY

CARBON

j-/

way

one

—

>\«UNITED

small

some

to be avoided if possible. There is

test and

flict

\((

ent

minimum

seems

new

ments
')

for

it is obvious that this kind of

this kind of operation is con¬

being switched because most of the middle-term obligations have
as

fuel

he has made the progress that has
been made to date.
Nevertheless,

market, with the longer maturities now

already been eliminated

wish, therefore, that costs by
industry interest it¬ control methods/ It seems very;;
problems of Atomic likely that within five years this/
Power, for most of the chemists will exceed one billion. dollars, j
not now working on atomic en¬ There was an article tbe other -day ? !>
(Nucleonics, > I
ergy are in the employ of indus¬ by M. E. Merchant
try. Of course, a great deal can Vol. 14, No. 5, May; 1956) in which i
be done by closer liaison with the
universities surrounding the vari¬ isotopes may well save 10% of the / '
ous
reactor development labora¬ total machining costs in the United j

to
•.

somewhat

increased

and

processing, special dis¬
solution methods, and the use of
alloys
with
/specific
coolants
which are inert to the dissolving
reagent. It really puts the chemist

v..
.C'v''

built

perature

not

•

such

soft

are

Public Pension Funds Favor. 3s of. 1995 '"v.//

I;
A

■F'

Atomic

of process chemists
dissolve this non-

conflict

use

higher interest rates and credit limit¬
.

most
happy to have the opportunity, to f
speak to you this evening and ,
and I

Avoid

are some

spots developing in the economic system and these forces

group

process

This

' .k_

it is evident that there

designed,
It

corrodible

Accordingly, as long as

obtain.

sfeked

are

economic conditions

„

hand

a strong upward pressure is being
-exerted on the business pattern, there is not going to be any
change in the money markets in order to. make credit easier to

j.;

interesting
game that is being played. On the
one' hand a group of metallurgists
who of course are very akin to
chemists in training and thought
and
conditioning, are asked to
make a completely nori-corrodible
fuel element;
and on the other

The

being

considered.

recently by these institutions in new offerings have been
larger than was the case not too long ago.
'
'

tinues to be

problem

Power is the question of corrosion
in the various atomic power re¬

made

Demand for Money Not

order to f

energy

fair amount of money is being taken

the homogeneous appears to

the

Homo-:

extent.

geneous or fluidized reactors of
various sorts have been proposed

cost

•

atomic

this happen,

learn

the effort to interest the chemical

The Urgent Role of Chemists
In Developing Atomic Energy !

Treasury investment accounts, accord¬

have

fraternity in the problems of the 5
development of atomic power. We i

banks continue to be sellers of Treasury issues as are
Institutions.

contribute

are

being put to work in non-Governments. Savings
the deposit

Of this money

♦

chemists

The
about

There are indications that these
being made largely for foreign

are

available in non-Treas¬
still finding an outlet in
Government securities but, here again, the attractiveness of longterm corporate and tax sheltered obligations is resulting in some
obligations.

ury

Treasuries

/purchases

be done if we all try. * v

can

6/15/58, and the 2VzS of 11/15/61.

because the

quotations down to either the old lows
interest in these securities is still at a low ebb,

sinking spells which
or

still

market

weak rallies which have taken place are being followed by

us try and lead
the development of

Peaceful Uses of the atom without

Government obligations

By JOHN T. CHIPPENDALE, JR.
The

Thursday, September 20,1956

ing commitments in the 2l/z% bonds, but indications are that the 3s
of 1995 continue to be the favorite obligation as far as they are

The

very

...

atomic

energy

in general and-so

Volume

184

Number 5570

.The Commercial and Financial Chronicle

get them to look at Atomic Power.

(1205)

In an^case,

among the securities; dealers in
the Southwest," Hugh Bradford,

;

to be very

Senior

QUANTICO, Va,

the conflict seems not
serious. But the Every¬
day Use of Isotopes in the control
of industrial,; processes is a bless¬
ing to us and the world, as a whole
which

the

atom has brought and
from which we will probably re¬

ceive good dividends in
atomic

investment in

Securities
him the

said.

Southwestern
takes-with

"He

affection, esteem, and the

good wishes of
our

Jones, Kreeger Branch
—

Now L. F. David Co.

Two With Whitehall
(Special to Tpe Financial Chronicle)

ST. CLOUD, Minn. — The firm
name of*Atomic Funds Investors

Build-

Service, 24 South Fifteenth Ave.,

Jones,

Kreeger'& Hewitt have opened
branch

office

the

Fick

MIAMI,
curda

employee in ing undfer the direction of Charles has been changed to L. F. David

every

firm."

V:;...

McCarren, Jr.

now

and

Fla.—Charles

George G. Schorr

curities Corp.

Company.

Atomic

Scientific

-s

Uses

addition,
the

mental

Isotopes

and

basic

the

lucrative

iBs*!

funda¬

Expanding

is,one pf the most
profitable occupa¬

and

any

man

provided

markets

{undertake,

can

patient

enough i to

sighted

and

far

await

developments of the
knowledge. ■ - a--\
|
,
J
without doubt

praise

contribute to

for

the development of atomic energy
for
its
Peaceful Uses.
With
no
doubt there will be

,of

which

made

new uses

have

not

Spencer's

dreamed,

but among

the important Peaceful
throughout all time will be
Isotopes. The chemist remains the
principal applier of Isotopes, the
Uses

inventor

new

and 'the

uses,

principal developer of ramifica¬
,

tions

yet

named.

not

can

imagine the chemists will continue
to play this role,r so once again I
say, your role iri atomic energy
is of extreme importance. Please
think when you do your everyday
work how you could do it better
with Isotopes. All the materials
with which you work can be made

SUMMARIES

Year Ended June 30

radioactive.

radioactive atoms in

given sample of matter. Thus
reagents
which have
a
given
specific activity^ say of radios
active chlorine, can be measured
out by volume into a solution of
chloride content, silver
nitrate added, and a precipitate
produced and the absolute concen¬
tration j of radiochlorine in the
resultant precipitate determined.
unknown

The

dilution caused

known
an

the un¬
of chloride gives

amount

NET SALES OF PRODUCTS

A Message

the

30,

were

1956.

measurements

accurate
are

date

these

only

are

The

5%, but they
simple that I
say that for the

One

chemical

can

isotopes; hydrogen,

carbon, sulfur, phosphorus, chlo¬
rine, calcium, etc., we have a
technique which may liberate us
from many of the difficulties in
fhe laboratory. We should by all
introduce these techniques

means

into the present chemistry courses
in
the
universities and high
schools

this

the students

additional

into

nature

will

peephole

and

works. It is not

she

want to
teach radiochemistry particularly,
but through use of these tech¬
niques the students will be taught
ordinary chemistry better and will
develop, I hope, an incidental in¬
in

terest

other expenses

fication will

program

provide greater sales and income

higher

atomic

(net)

—

$25,756,803 $19,592,521
6,178,946

7,429,661

$25,771,467 S

$33,186,464

BEFORE TAXES

the result of

....

FEDERAL AND STATE

$12,438,485 $10,383,454
■

op¬
.

;

6,514,000

5,265,000

INCOME TAXES
NET INCOME

$ 5,924,485

$ 5,118,454

our

acquisition of the Parker-Browne Company in Fort
Worth.
at

CONSOLIDATED

year.

Continuing to build for the future, the com¬

pany

will spend

year on research

FINANCIAL

•

full

measure

As of June 30

9,580,219

WORKING CAPITAL

oppor¬

1955

$27,950,067

$31,442,075

CURRENT LIABILITIES.

CURRENT ASSETS

and product improvement.

We look forward to

POSITION

1956

than $2,100,000 in the current

and development, market research,

market development

STATEMENTS

CONDENSED

Expansion of the formaldehyde production

Chicago will be realized around the first of the

tunities in the challenging year ahead

the company to

and we expect

PLANTS AND

continue to show sound growth.

7,568,987

$21,861,856 $20,381,080

44,869,225

45,366,863

344,015

EQUIPMENT

408,485

•

OTHER ASSETS (net)
NET ASSETS.

$67,075,096 $66,15,6,428

BORROWED CAPITAL

$23,750,000

;

$25,000,000

PREFERRED STOCK

the

energy and
Peaceful Uses of the atom.

(less sinking fund)

;

: •;

COMMON STOCK EQUITY

Kenneth Baker Retires
DALLAS,

NET INCOME

of product diversi¬

portunities in the future. Sales of dry ice and liquid
carbon dioxide will be

highly competi¬

nitrogen products.

company's

products sold

Selling, administrative and

June

look

how

see

that,

have

Cost of

Increased earnings from polyethylene

to.about

fast and so

think

True

achieved in the fiscal year ended

than offset the effect of the

$45,624,949 $36,154,921 .\

COST AND EXPENSES:

sales, net income and earnings per

tive market for

solution.

from the President

New highs in

immediate analysis for chloride

1955

1956

■'■J It is possible to measure in a
reliable, easy manner the total
number of

INCOME

CONSOLIDATED

SOURCES OF NET ASSETS

14,100,000

14,550,000

29,225,096

26,606,428

$67,075,096 $66,156,428

Texas — After more
in the securities

than

years

field

New

his

Baker

wife

Yorker.
he

York

and

Dallas,
Sept. 1
Long Beach, Calif., with

Kenneth
to live in

retired

Irene,
For

served

western

native

the

past

Securities

months

for

cashier

SPENCER

South¬

Company

|
i

Mr. Baker, a native of West Vir¬
was

active in

Wall

"Mr. N" Ammonium

POLY-ETH

(Spencer Polyethylene)

Dallas.

ginia,

PRODUCTS

New

CHEMICAL

COMPANY

Ammonia (Commercial

and Refrigeration Grade)

i Aqua Ammonia

;83% Ammonium

Street

Nitrate Fertilizer
SPENSOL

....i'.'.-

(Spencer Nitrogen
Solutions)

Nitrate Solution

FREZALL

(Spencer Dry Ice)
.

for

20 years and

aminer for two

with

was

bank

ex¬

years.

Exchange

•

Kansas City 5, Missouri

He served

Securities

the

Dwight Building

j Synthetic Methanol
.j

WORKS:

Pittsburg, Kansas

•

Formaldehyde

Cylinder Ammonia
Nitric Acid

; Hexamine

Henderson, Kentucky

Liquid COa

Commission for

joining

years

Southwestern

Company in 1955.
»

"We

Baker,

will
as

Vicksburg,

Mississippi

•

Chicago, Illinois

•

Orange, Texas

!-■

America's Growing Name

In Chemicals

*sv-

certainly

will his

prior to

Securities

miss

many

Mr.

friends

Spencer Chemical Company1 s Report for fiscal 1956 has just been published. A copy will be mailed to you on request

J>T.

new

Our children and grandchildren

shall

"id

the

natural

•

and, as we all
discovery of the new

of nature

tions

science

know,
laws

have the bene¬

use

agriculture

-1&&&

In
fits

are

connected with Whitehall -Se¬

Energy Commission program.
Agricultural and

Ma-

entire

our

the

Partner

(1206),

The Commercial and Financial Chronicle;..

yr\

Thursday, September 20,1956

,;'"V

Continued

from first

products $11.6 billion. The latter
figure is based on wholesale prices

page

before

state

which

Petrochemicals Industry

Figure 3
come

and "Federal

both

are

taxes'

substantial.

the

compares

FIGURE II "

OP ''

;

in¬

net

!9£S DOLL flfl SfliBS

SELECTED

U.S.

dollar of net worth for

per

and allied products,
petroleum, and all manufacturing
operations. The figures represent
an average for 1947
through 1951.

ticipated in the exploitation of
51% of the value of total chemi- petrochemicals.
In recent years,
diverse companies including ship¬
J cals. (Tables I and II)
<phe capital investment of the ping,
farm' equipment,
rubber
petrochemical industry in manu- manufacturing and gas pipeline
value of petrochemicals was over

facilities

presently

about $4 billion and is $0.5 billion

^
.

facturing

The return for

lied

1199554334

Petrochemicals may be divided
broadly into three classes: aliphatics, aromatics and inorganics. In

:"C'>

the different classes of compounds
is listed below:
„

companies

and

diversification

successful

have

increased better than four¬
fold from 1940 to 1950. From 1950
to 1955 the industry doubled. This

their
the

words

Since statistical information

cals

and

ceeded

allied

products has ex¬
billion.
Construction

expenditures in 1956 are expected
to be $1.4 billion. (Table III)

Diversity of Ownership

Petrochemicals

fined

are

broadly de¬

those chemicals

derived

from

natural gas and petroleum
sources.1 For many years, both oil
and chemical companies have
par-

for

natural

products,
4.5

for

5.5

gas,

for

the capital

Growth

measured in this instance on a
production basis.
Figure 2 shows the annual sales
Of the petrochemical, rubber, and
petroleum industries.
Last year
petrochemical sales amounted to
$3.7
billion,
rubber
(finished

goods) $5.2 billion, and petroleum

Shell Chemical Corpo¬
celebrated its 25th anni¬

versary.

The

duction

134.8

143 v

178

125

(est'd)
1965 (est'd)

panies

250

contribute

TABLE II

B/LL/ONS OP DOLLARS
FIGURE

III

NET INCOME PER DOLLAR OF NET WORTH
por

SELECTED U.S.

% of Total

tNDUSTR/ES

r.t: V V-:

CHEMICALS

I7.S

1 '■

'''

this

chemical

wholly

PETROLEUM REFINING

16.2
■;

•

; '

•

;

pro¬

owned
ALL

MANUFACTURING

V .'

•:..

14.7

times.

The contri¬

not

publicly

Shell's

available.

U.S.

PETROCHEMICALS

INVESTMENT AND PRODUCT/ON

sales, total assets^
or
net worth-

gross

FIGURE IV

However,

outstanding record of net

return

PERCENT

bution of Shell Chemical's opera¬
tions to Shell Oil's net income is

1960

income in 1955. From 1950 to 1955
the gross income from chemicals

114.6

1956 (est'd)

represented 13.4% of Shell's gross

114.3

V' .'

pany was 1,886,000,000 lbs. with a
sales value of $194,000,000. This

Petrochemicals

26.5

1955

subsidiary of the Shell Oil Com¬

All Chemicals
Output (Billion Pounds)

•

petro¬

1954

ration

increased 2.75

25.3
"

Shell Oil

petroleum, and.

industries.

Fast and Future Petrochemical and Chemical
Production

,Petrochemicals
Year
Output (Billion Pounds)

3.7

investment in

industry—particularly the

rubber

TABLE I

f>£TXOCH£MIC*LS

4.5 for

all

These charts show the chemical

the petrochemical industry — as
distinguished from the chemical

industry

Annually

•/.*'>>•; i-"/

1960 may be $8 billion.

whole—is difficult chemical industry—to be both fast
to segregate, the following figures growing and profitable. It is char¬
Aliphatics40 billion
Aromatics
compare the entire chemical in¬ acterized, however, by high in¬
5 billion
dustry
with
the
natural
gas, vestment per unit of production
Inorganics
15 billion
petroleum, rubber, and all indus¬ and rapid technological obsoles¬
About a year ago the average
try to present a picture of the size cence.
price/pound of the aliphatics was and scope of this
growing field.
Petroleum Companies in
15c, of aromatics 19c, and of in¬ Figure 1 shows the relative rate
Petrochemicals
organics 2.5c. In 1955 petrochemi¬ of
growth of these industries. The
cals amounted to $3.7 billion and
chemical
Here are a few interesting facts
industry's
growth
of
in 1956, they are estimated at $4.2
10.8% per year surpasses that of about successful
petroleum com¬
billion.
the other major industries shown. pany participation in the
petro¬
For each of the past five years,
By comparison, the annual growth chemical field:
the capital expenditure in chemi¬ rate from 1930 to 1955
was
7.8
Pounds

RUBBER (WISHED COODS) S.2

rate of growth is expected to con¬
tinue from 1955 td I960. In other

petrochemical field.

1960, the estimated production of

M'i-

few

PETROLEUM PRODUCTS (WHOLESALE) //. € V

tion of the chemical industry. The
capital investment and production

After that I will comment

tistics.

and

Figuri 4 shows, the past,' pres-^
ent, and future expected growth
rate of the "petrochemical" por-.,

lieved to comprise 55-60% of the
assets of the entire chemical in¬

$8,000,000,000.

highest ? at
refining was
all ' manufacturing
was

-■

14.7

Examination of some of the his¬

chemicals and al¬

V 'A

Petroleum

16.2 %

firms have all entered the field.

agd.

year

products

17.5%.

It is be-, torical growth figures and profit
margins,
and
the
anticipated
growth patterns makes it easy to
dustry. Since the petrochemical understand the great and con¬
industry has been doubling every tinuing activity in this field.
At this point I will present a
fiVe years, it is expected that the
capital investment in 1960 will be few of the industry growth sta¬
than

.'"JM

the chemical

—Today and Tomorrow
^ v

V'1 ;'1'. v.-;

■'5

;•

■

tNDUSTR/ES

plant ^investment

however,

you want to evaluate its

performance with other oil
—

CAP/TAL

INVESTMENT

PRODUCTION

com¬

indicates

petrochemicals
significant share to¬

wards Shell's

earnings.

I9GO ESTIMATE

/96Q ESTIMATE

I9SS

With the acquisition of the
gov¬
ernment
owned
West
Coast

Dollar Value

$3.2 billion

$6.1 billion

styrene,

3.2

6.0

52.5

butadiene
and
GR-S
plants last year, Shell added an¬

(est'd)
(est'd)

3.7

7.2

51.5

other

$50,000,000 to its

4.2

7.8

come

1960

(est'd)

5.7

10.5 *

capacity.

1965

(est'd)

9.0

16.7

1955
1956

■

52.7

Among the
icals

TABLE

Capital

III

Expenditures

work
Total Chemicals

$0.5 billion

$1.1 billion

1956 (est'd)

0.7

1960 (est'd)

1.1

1965 (est'd)

2.2

1.4
"

;

/9SO

organic chem¬

from

petroleum

3-3.5

alcohol

ketone.

and

methyl

;*1

It is believed significant that
back as 1948,

far

the

efforts

the

rected

\/940

*
as

approximately

half

] I940

ethyl

60
SO

Company were di¬
the petrochemical field.

BILLIONS OF DOLLARS

■

B/LL/ONS OF

FIGURE

was

petrochemical

ethyl

9 Jo ~/9<T£~

alcohol

(ethylene).

from

Later

1 "Petrochemicals

CHEMICALS

chemical

10.8

compounds

petroleum

butyl
be

can

troleum hydrocarbon
components.

NATURAL GAS

made
as

one

alcohol

defined

(MILLION POUNDS

with

wholly

f,ooo
900

800
pe¬

of their basic

Actually the general under¬

standing goes beyond this to include pure
hydrocarbons and other materials derived

7.8

U.S. POLYETHYLENE CAPACITY

early entry in the
Many years

field.

Esso manufactured synthetic

ago,
J

in part from petroleum but not
as
chemicals. Examples

TOO

GOO

generally classed
are

RUBBER

ammonia

pure

carbon, is included

"The

4.5

ALL INDUSTRY 4 5

natural

gas

and

this

minor products

ANNUAL RATE Of GROWTH-PERCENT

are

sands."—Excerpt
Natural

Gas"

numbered by the thou¬
"Petroleum
and

from

Bulletin

500

400

category.

major
petrochemicals
are
am¬
synthetic
rubber, carbon black,

ethylene, propylene, butylene, butadiene
for
rubber, acetylene, benzene, toluene,
styrene, polyethylene, phenol, formalde¬
hyde, acetaldehyde, alcohol, ethyl alcohol,
isopropyl alcohol, butyl alcohols, ethylene
oxide, ethylene glycol, acrylonitrile, acetic
acid, acetic anhydride, and acetone. The

from

synthetic rubber—a mixture of hydrocar¬
bon polymers.
Carbon black, essentially

monia,

PETROLEUM

made

POUNDS/YEAR

Esso

Shell

Development
FIGURE

/9SO

isopropyl alcohol, syn¬
glycerine,
epoxy
resins,

butyl

2.0

in¬

are

thetic

& Allied Products

I
1

many

derived

gross

plants operated

which Shell has done
outstanding

Petrochemicals

1 1955

these

556
Bureau
of
Mines, p. 8. A Chapter from Mineral Facts
and Problems by R. A. Cattel and others.

300

PER

TEAR)

Volume

184

Number

5570

The

Commercial and Financial Chronicle

(1207)
and

methyl

ethyl

For

supplying

needed

\
the

World

were

rich-Gulf

;

ketone

added to their list.

now

^ •

rubber

War

the

II, several

have

Chemicals, -Inc.
a

They dodecylbenzene,

substantial interest in

butadiene

plant

at'.',' Port

Neches, Texas. The synthetic rub¬

Oxo

alcohols.

American

Oil

polybutene,
At

has

chemicals

and

Texas

the

City,
completed the

from

natural

Fisher-Tropsch

Standard

gas

via

quently alkylated with benzene to
form

process.

Indiana

has

dodecylbenzene.

benzene

an¬

first

the

Dodecyl¬

precursor

one

plant ever built for direct nounced plans to consolidate three ' of the
major detergents.
oil and rubber companies initiated
ber plant at this location is owned
synthesis of methyl mercaptan for of its wholly owned chemical sub¬
Their petrochemical sales were
programs which led to the devel->
exclusively by Goodrich-Gulf, Inc. use in the manufacture of methi¬ sidiaries
(Indoil Chemical Com¬ about $50,000,000" three years
opmentVand commercial produc¬ The latter
ago.
company has plans for onine, a new poultry feed supple¬
pany,
Pan American Chemicals
tion
of
synthetic rubber. Butyl production of
latex, initially at a ment. They are large producers of Corp. and
Cities Service
Hidalgo Chemical Com¬
rubber, " discovered by SONJ, is production of 1,000,000 lbs./month additives to
improve the quality pany) under the name of Amoco.
In
1927
Cities
derived completely from isobuty- with
Service, with
plans to operate at- three of lubricating oils. They not only The
change will become effective their natural gas oxidation proc-*
lene and isoprene. Esso Research
times this rate in the near future. make the
greater proportion of at the end of this year.
and
Engineering has lust an-^
ess, manufactured formaldehyde,
what they use, but supply
large
bounced successful production of
Standard Oil Company of Indiana
methanol and acetaldehyde. Cities
Standard Oil Company of
quantities to other manufacturers.
automobile tires from butyl rub¬
Standard Oil of Indiana's petrolThe " new
ammonia
;
California
Service and Continental have
plant;: of /:■'/
ber and that the butyl tires have
chemical business is only a small Calumet
"Nitrogen" Products Com¬ /• ' The Standard Oil Company; of formed a petrochemical
several advantages over those in
subsidiaryproportion of their total but is pany is under' construction. Calu¬ California
has pioneered in the
present use.
''
t -* <*
called Petroleum Chemicals Inc;
profitable and increasing. Dollar met is owned jointly by Indiana utilization of
aromatics.
C
v
They have also developed proc¬ volume of sales
/ Last April P. C. I. purchased
by their chemical and Sinclair Refining Company.
The Oronite Chemical Company
esses for
making butadiene from marketing subsidiaries, I n d o i 1
vThe" Hidalgo-Chemical
from
the' government the Lake
Com¬ -(a wholly owned subsidiary)
is
butylenes and extraction processes
Ch#micaT C o m p a ri»y "ancT Pan pany, V
for butadiene and also
wholly ^ owned .subsidiary, believed to be the acknowledged .Charles': butadiene
plant.
This
isobutylene.
In the U. S.
nearly three billion American Chemicals Corporation, has undergone extensive rehabili¬ leader iri the manufacture of do¬ plant has a % capacity of about
dollars worth of farm
crops arb in 1955 were about 50% over 1954. tation and is now believed to be
tons per year.
decylbenzene.
This
material
is 65,000
Recently
destroyed each year by disease.
Among 4 the .petrochemicals they1 -in operation.<•' The plant was de¬ made by
P. C. I. has taken steps to increase
Esso Research
polymerizing propylene
developed a fungi¬
are
producing commercially are signed to produce gasoline end to the
v< ; Continued on
cide which is having unusual suc¬
tetramer, which is subse¬
page 32
cess in
combating crop disease.
'

•

1955/ petrochemical

sales

above any previous year and

were

amounted to
total

approximately 6% of

domestic

sales.

Although

their petrochemical sales have not
been published it is believed that

they

were

last year.
least

excess

1953

$150,000,000

they

were

$100,000,000.

Phillips Petroleum

Phillips Petroleum is undoubt¬
edly one^ bf thei m
oil companies in the petrochemical
business.
as

Some years

back, it set
objective, the up¬

company

grading cf
and

many of its petroleum
natural gas hydrocarbons to

valuable end products.
In
the past decade, it has become one
of the largest producers cf am¬

monia fertilizers

(360,000 tons in

1953), and carbon black (224,000
in 1953).
In addition, it is

tons
;

producing paraxylene and methylvinylpyriJine for synthetic fibers,
and plans

shortly to produce poly¬
ethylene by their new low-pres-

•sure

process,

Phillips
'

der

the

for

the successful bid-

was

Government- owned

Borger,

Texas,
butadiene
and
GR-S plants and so will soon be'

an important factor in the
butylene, butadiene, and GR-S rubber
'fields to add to its petrochemical
activities.

The last 10 years has seen Phil¬

lips Petroleum

grew to a $1,000,-.
000,030 corporation. With one of
the largest reserves of natural gas,

in the U.

S. they have

excel-

lent position in the

petrochemical;,
industry. The company's activities.
include fertilizer, synthetic rubber
and plastics. Sales of petrochemicals

are

for

1955.

estimated

$130,000,000

Construction

new

the near future are ex¬
pected to double the 1955 sales in
the next three years. It is con¬
plans in

ceivable that earnings from petro¬
chemicals could easily. expand to
.

the point where they are at least
as. great as present profits from;
the oils and gas operations.
Gulf Oil

The petrochemical activities

the

Gulf

tion

and

Oil

Corporation have
been
primarily in the < field of
ethylene production and distribu¬
also

the

manufacture

iso-octyl alcohol via the Oxo
process.
In the early 1950's Gulf
.

the ethylene business by
building a plant to manufacture
150,000,000 lbs. of ethylene/year.
Last
summer
they completed a
entered

second unit to manufacture

ditional 220,000,000 lbs./year. The

journals
"

have

indicated

that

These

ad-,

the

company

expects to reach

sion

the second

in the

near

deci-"

future:

It is understood that Gulf is

cur-

just a few of many better

products available
research and the

third unit of similar size

on a

are

to you

through Cyanamid

•

improve quality and lower costs.

manufacturing approxi¬
mately 9,000,000 lbs. annually of
high-grade iso-octyl alcohol. Other
activities
in
the
petrochemical
field are now receiving attention
tion

are

expected to

in the

near

come

future.

CYANAMID

R OCK E F E11 E R

PIAZA,

to frui¬

■'.//

Gulfs other interest in the pet¬

rochemical field, is through Good¬

€J FAJVA JVJT I X>

AMERICAN
30

rently

and

application of its chemicals

BUILDING

FOR

THE

FUTURE

THROUGH

CHEMISTRY

NEW

COMPANY
YORK

20#N.V«

The Commercial and Financial Chronicle...

(1208)

Continued from page

Major Petrochemicals

The President's Materials

barrels

Policy

Commission

Both of these jointly
ventures give promise of
growth in the future,

to 80,000 tons

plant capacity
year.

ice

and

purchased

Continental

DmLa pA

S^nroH'^inn^nf
production of

tams.

mated

owned
steady

2.5

billion

£ollowlnS P,cture ob"

j| l.lAit»Cwltaltil

iZI

QltAnCArc

©wCilC tfUi OpOIISOrS
V
An

AUIOmClIllfll CaIIIDIi
exhjbit

inting

devel_

highlifhts

and

opments
rapidly

expanding field

mation

Availability of Major Petrochemicals

and

the

of
of

the

auto-

instrument

and

control manufacturing industry, is
being sponsored by the invest-

1935

129

Ethane

11th Annual International Instru-

ment Automation Conference and
Exhibit, which is being held in
the
New
York
Coliseum from

Paraffins:

lVietnane—billions of pounds___

oi.

controlling interest in mid-South
Chemical Company, an anhydrous
ammonia marketing company,

i 960

119

Propane

Several months ago Cities Serv-

3.0

and

ral gas production at 9.2 trillion
cubic feet in 1955 and 11.4 trillion
in 1960. Expressed as billions of

estimated

and Tomorrow
the

19552

It estimated natu-

diates available for chemical con-

Petrochemicals Industry
per

report of June 1952
hydrocarbon interme-

oil

billion in 1960.

Thursday, September 28,1956

Lum Oil, .n0,w owned by
."
santo Chemical, was; an examp

—

Butane

ment firm of Bache & Co., at the

Olefins:

small oil compapy^that
a
Ethylene
1
___"_
24
27
Sept. 17 to Sept. 21 under the
particularly successful m the petPropylene
29
32
auspices of the Instrument Society
rochemical business. Lions pnnn-Butylenes and iso-Butylene
31
36
of America. ;;
I
ciPal chemical activities were in Aromatics:
A special analysis of automaHons, dock facilities, and construe- ammonia and derivative fields. In
Benzene
i
9
12
tion and the producers of automation
of barges for transporting 1954 Lion produced 225,600 tons
Toluene III
I
18
23
tion equipment has been prepared
ammonia to
a
number of ter- of elemental nitrogen. At an estiCbHydrocarbons (o,m, & p-xylenes, & ethylbenzene)
23
29
by Bache & Co. and will be disminals :;Mth£ Mississippi VaUey inated sales value^of $80 Perton
f
*
„tributed at its- exhibit
in; the
and' in southern Texas. ' Recently of nitrogen content,
Hydrogen and Synthesis Gas: as fuel for the internal combus- Coliseum; and at technical sesP.- C. L's management has ap- sents approximately $ 18,000,000 of
Hydro^en 'and &
.engines, ^ethylehe^^ "followsAsidhs^jclini<:$^^6rkshops and
;
Lion's ^rnfts! operating income of
two imoortant oetrochemicals
ammonia as the second highest cial meetings which will
take
proved construction of an am- TlAnc gross nnprating income of
"
~~

This company is now

undergoing of a

;

major expansion with construeand purchase of additional
ammonia
bulk
distribution staa

tion

are

$98,585,000. Lion's net earnings of

for Lake Charles
supply the require¬
ments of Mid-South.
<

tonnage material supplied from place in rooms of the Coliseum,
petroleum and natural gas. The Columbia University and the Hogrowth of ethylene as a chemical tels Statler and New Yorker.
£
ing- ammonia, methanol, Oxo-al- raw material in the last 10 years
"Future thinking may well reStandard Oil Company of Ohio
cohols, the Fischer-Tropsch syn- bas been spectacular. Its present gard automation as the outstandcountless
reduction
annual consumption is in excess ing economic development of the
Standard of Ohio is one of the thesis ' and
(hydrogenation) processes.
of 2 billion pounds. Its list of second half of the Twentieth Ceii-

plant

monia

11.2%

will

which

The

Texas

income compared

favorably with similar size
integrated oil companies.
v

Interesting example of diversified

participation in the petrochemical newcomers in the petrochemical
Hexaco is engaged in in- field. Standard of Onio began tne

field.

creasing its direct participation
and is simultaneously, involved in
the
field; through
two
jointly
owned companies.
The Texas Company has been

manufacture and sale of fertilizers
and other petrochemical products
recently
when
their
ammonia
plant at Lima, Ohio, was completed.
i
Standard of Ohio's 1954 annual
report states, "The decision to enter the rapidly-expanding petrochemical field represents.a major
diversification step for Standard
of Ohio. It followed a comprehensive study of product profitability,
market potentials, and manufacturing processes."
'
.'
I
.

and

specialty products
Examples are the
manufacture of naphthenic acids,
sodium sulfonates, anti-freeze additives,
gasoline
additives and
of the company.

rust inhibitors.

These

chemicals

two

number of

are

vital

syntheses includ-

...

Internal Combustion Engine
,

Petrochemicals

•

hydrogen such as
from a petroleum

By-product
that

obtained

refining process-first commercialized 16 years ago-—has had a proprocesses.
esses

fall

there

are

derivatives is steadily increasing
until it now contributes to nearly
twice as many chemical and
chemical intermediates as both

hydrogenation

million

500

over

cubic

lene

plastics.

addition

its

per day produced from hydroforming and catalytic reform-

represents a rich raw
material supply.
If a little work
is done on it, instead of being
worth only fuel value, it jumps to

ing,

n/r

„

Synthetic Ammonia: Many years
Premium Gasoline: Premium
Gasoline has become the world's ago ammonia could lay no claim
to being a petrochemical. Today it
expanding their petrochemical greatest outlet for petrochemicals,
What has brought
program. It has been reported that Years ago, this product was put surely is one!
about the revolution in the ferHie company has a lubricating oil t o g e t h e r primarily by brute
titer industry—and particularly
additive plant under construction strength and awkwardness. Today
Recent announcements have in-

pound per year production rate automation, it asserted.
mark could be reached in the next
However, Bache & Co. added*
fjve years or s0>
"this does not preclude the fact
j
that as time goes on other cornt

Aliphatic

Oxygenated

Chemicals

panies

Synthesis

;

in ammonia ~~ is^undoubtedly a
One of the most significant conArthur, Texas. Planning it is becoming more and more a
combination of several factors. It tributions in the
field of chemunderway for the construe- matter of blending specific chemition oj a 180 ton/day ammonia cai compounds for obtaining su- is customary to; calk attention to istry jn the past generation was
two, facts in
and ammonia derivatives plant at P^nor
quality product. The
th^ introduction of that made by Fischer and Tropsch
Lockport 111.
v octane race in the petroleum inany^aiscdssion of the rapidly ex- jn their discovery of hydrocarbon
The
Texas
Company and its dustry, which has been in progress pandmg^ fertilizer lpdustry: one synthesis.
The
interaction
of
being the. great annual increase
hydrogen and carbon monoxide
wholly owned subsidiary, Texaco for some years, will continue for
in population
Development
Corporation, have many years to come. The average
and-jmother that results in an extraordinarily in*

commercial application

and

of the

partial oxidation of natural
and heavy fuel for the pro-

gas

duction of

hydrogen for ammonia

synthesis.

Successful

operation

natural

established

commercial

first

The

ea<?

well

full-scale

Operation, on heavy fuel will get
soon in the Northern
Chemical Industries, Inc., plant at

underway

Searsport, Maine. Texaco has also

ication^and^a"recent"press
indicates?that

announcement

octane number of premium gaso^lne *oday country-wide, is 97.
f0™e
areQQmar+ketlnS a
*Ul .9 better than 98 octane. By
J wide margin, the greatest single
^a<: ,or ln t .s r/ife "^octane in re¬

cent years ls the widespread use
ot catalytic reforming processes.
than

1,000,000-

barrels

are

heinf? reformed

Morgantown,
k

everv

l table below the octane numbers of
West aromatics containing 6, 7 and 8

_In_its joint interest ventures,
Texas Company is associated
with American Cyanamid in the

carbon
shown.

atoms

per

The lowest

molecule
one

are

seen

be benzene which rates 99 octane

and' the two highest are m-and
C he mica 1 Company,
p_Xylene at 140-146 octane.
Inc., and with the United States
Octane Quality of Aromatics
Rubber Company in the TexasBenzene
99
U. S. Chemical Company. Jeffer¬
Toluene
124
son is a major
producer of ethy¬
o-xylene
120
lene oxide and ethylene glycol.
m-xylene
145
They also produce and sell a con¬
p-xylene
146

Jefferson

___________

siderable

number

of other prod¬
of
which, such
as
ethanolamines
and
morpholine,

Texas-U.
of

the

successful

bidders

the

government's sale of its synthetic
rubber
U. S.

producing facilities.

now owns an

half

interest

plant at
also

Ethyl benzene

124

some

derived from ethylene oxide!
S. Chemical was one

are

Port

owns

ymer

undivided

one-

fho

Alkylate:

The

him

Port

p r

nn/i

■

proc-

?cta£? gasohne fractions suitable
for blending with other gasoline
jonmonents for aviation or motor
fuels'..has,been in commercial
many

years.

beeri largely

may®

area

automation."

The

study then outlines the background and outlook for 15 com-*
panies, both large ' and small*
which "over the long-term should
benefit significantly
from the
spread bf automation."
;

teresting series of chemical ireac-

f^Hli7Pr r^nMnn
'The

consumDtion

nifrn^on

yearTt

4^ bounds

is expected to be
It has been reported
that the most profitable rates of
application, if used at optimum
800,000 tons.

„

Public

offering

$75,000,000

Co. Inc., Kuhn, Loeb & Co., and
Lehman Brothers. The debentures
are priced at 98.64% and accrued

4%% to m^urUy.

quallty and ln

iaree aimnfifv

made yesterday (Sept. 19) by a
nationwide investment banking
group headed by Dillon, Read &

uty*

Proceeds from the sale will be

used to furnish additional workronri»«i«n
lng funds to the corporation's
levels of other practices, would
subsidiaries to be used by them
correspond to 10 times the current
output of the petro- to reduce short-term borowings
total use of three primary plant chemical industry may be seven uicurred for the^ purpose of purnutrients.3
The
implications of times as great as in 1939. The total chasing receivables and for other
such a volume become immediateasset« hf I thp optrnrhpmioat ir.rj„e
corporate purposes. The major
T

ly apparent.
Most

oil

natural

gas

companies are using
for ammonia produc-

tion.
An

ammonia plant represents

substantial investment. A unit to

assets ot tne petrochemical indus- portion of the funds will be made
b*y are now valued at $4 billion, available to C.I.T.'s automobile
Petrochemicals account for nearly financing subsidiaries,
25% of our total chemical producThe; new debentures
tion.
wni

less

acronnt

than
fftr

years

thev
Th0

nvpr

produce 300 tons per day includoff-site facilities etc. might

will, account for over 50 %. The

cost

nious and are expanding at such

•ing

much

$10

million.

ammonia plant may be converted
to
production of methanol, the

second

from

methane.

largest

methanol

pounds

per

volume

product

Production

now

over

year.

1.5

billion

used

for

freeze, and solvents.
Ethylene:

0ne of the constituents

Except

sium.

°PP°rtunities for growth
rate

c*xn"o wi
wishes

excellent

debentures are redeemable at

par.

c.I.T.

Financial Corp. has
numerous
wholly-owned subsid-

iaries engaged principally in

spe-

cialized forms of installment fifdpfmpmt.
nancing, including certain related
express
his thanks efoTrVhe
insurance and other activities and
;

future
a

assure

are enor-

not

are

^bject to redemption prior to
9ct' l> 1966- Thereafter> the new

ti,

•,

help given him by Mr. K. s. Adams of

factoring.

Together,

the

sub-

p,hrH?fs /fftrMeuS' Pr'c Jerly I!?cAfe« sidiaries form one of the largest
Oil, Mr. j.'KMrRoberfs- o^stndard^ol!
installment sales financing organiCompany

(Indiana), Mr.

Kemp,

zations in the United States and

to^petro-

as aromatics
of alkylate is 2, 2, 4 tri-methyl- chenllcals
Pentane> which by definition, is alkylate which are largely burned
100 octane.;. The production of
2 The
estimated
U. S. production
in
alkylate - which is certainly a
close to this
petrochemical—is currently in the 19^4 was quitephosphorous, figure.potas3 Nitrogen,
and

vicinity of 250,000-300,000 BPD.

far

are

areas

Of^ nrnHi.ptfnn Hal The most recent developments in C. I. T. Financial Corp. 4V4%
resoo^^e fw the
synthesis of organic com- debentures, due Oct. 1, 1971 was

Pfwt

This formaldehyde
manufacture, anti-

or°C hvd rnfh isalfuric a(ad
hydrofluoric
acid
as
the

*l~ catalyst-

s PThA ntnL n/i# ^tCh,eSf
the butadiene nl an?
^tv/n
roLlvmef rfiaPnf L^d the 2°*?
SESJSS?int-uare4
by
nanf
Chemicals Comp
y*

alkylation

?s.s> whereby isobutane is combmed with olefins to produce high

hutadipnl °Peration for

the

Neches, Texas.

onp

plants

Texas-

the

hols' aldehydes, ketones and acids.

imr

__^

ucts,

relatively little additional

interests
these

CK-. Kr a iSSrJSSfSJaffJS c.l.l. Financial Debs.

In the

Virginia.

from

through a program of diversify
cation, carry their activities into

poundsifrom hydrogen and carbon
a?onoxid^ has been application of
fN
Ls nrol^^^
Si® P°wdered catalyst technique,
g cl
f comnounds that is
10 years
On Jan
1 of this
Thi« type of operation has several
of tremendous helo to the ref ine? las
vear
the
Lhvdrous anLonia a.PPareunt advantages over the
jn cotltinually improving the per- clnLitv was 4 100 000 tonT EaHv flxed:bed operation and is exnanhfha

2*5etorroed every

the biggest petrochemical.

2? L.
undertaken
Mathieson at

there

whose

afield

via Modified Fischer-Thropsch

Port

ment

should

•

well-established use for wire insulation, film for packaging, pipes
«md bottles, it is -finding new ap"*
plications in its low polymer
forms as wax substitutes. Production over the past several years
and through 1960 is shown in Fig-

is also

been major factors in the develop-

industries

goods

benefit.

The greatest beneficiaries, th0
firm stated, will be those companies producing automation equip-*
ment rather than the companies
using the equipment. Producers of
machinery and machine tools,
a value of as much as 40c-50c per
electronics, instruments and conthousand cubic feet. This product, ure 5.
trols, office equipment and mateis therefore worth many millions'
Unless some far superior mate- rials, handling equipment are in
of dollars per year to the refiner, rials
are
developed, a billion the best position to benefit from
feet

cheated that they1 are considerably

tury," the special study stated. In
view of the fact that there is noautomation; industry as such, it
was pointed out, • producers of
automation equipment cut broadly across industry lines and many

propylene and butylene.
All of the above procThe most rapidly growing marin this category.
Since ket for ethylene is in polyethy- capital

effect

found

producing petrochemicals, as part
of its regular operations, for many
years. "Only
small amounts of
these products have been marketed as such.
They have been
used in the manufacture of fuels,
lubricants

made foom methane.

offers an

Company

gross

very

The Texas Company

Engineerill,, and Mr. W. F. Bland of
Petroleum Processing, in the preparaof this paper which was originally
presented before the American Chemi-

Form Mortgagee

cal

Society-Delaware

Meeting

Valley

Regional

Feb. 16, 1956, .and has just '
been brought up-to-date.
on

Ventures
_

„

tion

jMOrtgagee
been

formed

T ifior+xr
.

Ventures,
With

®trppf

to engage

Novr

in a

Ltd.

offices

r»iew

Vnrlr

has

fifv

YOTK Ulty,

secunties business.

Volume

184

Number 5570

The Commercial and Financial Chronicle

Independent Bankers

mittee and District Business Con¬

NASD District 11

Annual BreakfastElects

:
/

PORTLAND,

Oreg.—The IndeBankers Association
of

pendent

D. C. ~ The
members of District No. 11 of the

12th Federal Reserve

the

Muldowney Gov.

WASHINGTON,

duct Committee of District No. 11.
.

National Association of Securities
headquarters
in -Portland,/ Dealers, Inc., embracing the DisOregon, will hold its Annual In- trict of Columbia, Maryland,
dependent Bankers Breakfast dur- North Carolina, Virginia and West
ing the National ABA Convention Virginia, recently elected Joseph
at
Los
Angeles. The breakfast J. Muldowney, a partner of Scott
will he held in the Pacific Ball- &
Stringfellow, Richmond, Vir-

/ Also, at a recent* meeting of the
Southeastern group of" the " Investment

Bankers

Association

elected

District,

Secretary of that group.

ginia, to the Board of Governors
morning, Oct. 22, at; 7:.45.
/of the National Association of SeWalter A. - Johnson^, president curities Dealers, .Inc.,. to fill the
; o;
the Olympiai State Bank; & unexpired term of • Beverley B.
Trust Company of Olympia. Wash- Munford, a partner of Davenport
ington and President Of the Asso- & Co., of Richmond, who resigned
l,

last/month,

that"; the /Association

announce"

Mr.

Sill
of -Governors

of the

Federal

serving

Louis Kass Opens

engaging

Y.—Louis

from offices at

City.

103

City.

Park
•

Avenue,

•

Plains

New

;

York

Priam

T.
'

Securities

has

been

249

West

formed

Corporation

with

offices

111th

Street, New York
City, to engaging in a securities

business.

Road.

of¬

New

Form Priam Securities

/Girard H. Kunst is engaging in
a
securities business from offices

Kass

1735 White

engaging

Avenue,

York

Girard H. Kunst Opens

is
securities business

a, securities;-business, from
fices, at 276 Fifth

securities business.

Open

Oil-Investors, Ltd.

City

BRQN[X, N.

;

Form Western Inv. Service
*

mwiviu

Form Inv.

ENGLEWOOD,

Forms Murray

& Co.

Investment

Colo.—Western
Service, Inc. has been

Corp. of Fla.

.(Special to The Financial Chronicle)

formed with offices at 3530 South

Murray & Co. has been formed

IS
tq engage, in a securi- •yestmant Corporation of Florida
W. has
^ew YorkIan..J. Murray,.general = ties business. Officers are H. W. has been formed with offices at
City.-; Partners of the
_

........

firm/are

spence;;President; Allen T. Mor- -1750: East

jr.^"Rmited ' pitner

James

Sunrise- Boulevard

to-

^g'

Re-

Systej^^hosd Subject/wUl^

serve

was

York

Oil Investors

has been

inc/nS ^erI

tenson. Vice-President; Ralph M. engage in a securities business.
Prior t0 his election to the Board Murray™*Jr-.-i^a member™*! the^Buchanan,-.; Secretary;., andjTaft 'G.;P. Edwards is President of the
as Chairman to the District Com-: New York Stock Exchange, ./;'w/; Barrow, Treasurer.;/ - .
.
company. ////■/VfC''' "••/ / -• ••'////•/•

Robertson, member of the Board
-

Muldowney

Formed

Co., Inc.

•

ciation, states , that the is.-happy to-

of the Statler Hotel Monday

room

engage

with

Kook Co.

Kook

f1*

Street,' New

America, Mr. Muldowney was

(1209)

■

^ldingrCdbip^^'/Afet^r/v/;;
t/v
{ -This^rneetihg should. be- of '-par- ;/: ;;./*;
ticiilar ihterest to -all the bankers r
-

•iijr•,attendance:/at/the/ABA rCpn-:
.

vention^as thevFederal /Reserve :
Board ris/vestfi^withi^ministtatr ; i v.*.
the- recently /enacted

ing

/Holding

Company: Act

; Bank-?

and

Board'sv

points in the

attitude/

-*'<
>

■/;

the

bankers will undoubtedly want to
know how this will, be done and

the

//,//,•;

several

on.

law.

new

Tickets for this breakfast, which
has
now
become / a
traditional
event
will

the

$3,

ABA

and

may

Convention,
be secured

by writing the Association at 825

Failing Building/ Portland, Oreg.

Nortex Oil & Gas

Gonv. Pfd. Offered
J.

ciates
of

Williston & Co. and

offering

are

Oil

Nortex

asso¬

100,000 shares

Gas

Corp. $1.20
preferred
stock (par $1); convertible after
April 1, 1957. The stock is priced
at $20 per share/
cumulative

convertible

/..Of the proceeds from the sale
of these shares, the company pror
poses jto ,.usq $110,000 to pay the
principal and interest/from Feb.
;TTI955 to'Oct. 1-1956, on its $100,000 promissory note due Feb. 1,

1957, and $552,500 to retire shortterm

notes

tion

with

incurred

connec-1

the

acquisition
of properties

in
1956,
lo¬
Montague and. Baylor
Counties, Texas. The balance will

August,

cal ted

added

funds

eral

the

company's
used
for.

and

gen¬
any

proper. corporate purposes.

'/ The new shares are convertible
any
time after /April 1, 1957,

into
one

for

common

stock

the basis of

share of $1.20 preferred stock
each
1.7 shares of common.

The

stock

per

share,

crued

redeemable

plus

$23

and

unpaid

ac¬

dividends.',/

/Nortex Oil & Gas Corp. owned
of 'Aug.
1, 1956
(including
properties acquired' in August,
as

fractional interests in

1956)

with

total of 112 completed and

producing
oil; and;; gas
wells
thereon (equivalent to 42.479 net
wells), and-two completed but
shut-in gas wells
(equivalent to
0.222

net; wells).

leases

18,9-11 net

also

acres

held

non-

producing properties in; Texas,
New .Mexico,-; Mississippi;, and
Oklahoma.

*/\ Other

writing
closs,

/ *v ;

members

Parker

;

the

;

include:

group

/
under¬

Auchin-

Redpath; Good-

bpdy & Co.; H..M. Byllesby & Co.,

Inc.;

Winslowj Coliu & Stetson;
& Co.;/Charles A. Tag-'
& .Co.; and McDowell, Di-

Becker
gart

mond & Co. /

' *.

Jay Kaufmann Admits
ft Harry

limited

Newer and

pro¬

ducing oil and gas properties in
Mississippi and Louisiana

Texas,

the
i ...X

"dramatic" metals have

High construction activity also calls for more lead

lately taken

spotlight from prosaic yet versatile lead. But this

heaviest of

common

metals is

experiencing increas¬

for

cables. A

non-ferrous metals which Anaconda has

ingly heavy demand. And lead is one of the many
long pro¬

demanding lead shielding

duced. Anaconda's-lead output

up to

than 67,000,000

last year was more;

pounds.

Main factor in the

rising demand for lead is its

special importance in storage batteries, essential in
the trend to motorization on land and sea through¬

To
is

keep pace with this growing demand,

are

in copper,

number of

aluminum, zinc, uranium oxide, a large
by-product non-ferrous metals and fabri¬

cated mill

products. Z\//-/-.';Vr-*%'■/"'//■'662,88

the world. Other

ever-growing

uses

for lead

needed in the automotive and th^ electrical

fields.

•

The American

Brest

American

Stock

members of

Chile

Exchange,

Sept. 1.

Copper Company

Anaconda Sales

Company

Copper Mining Company.

Greene Cananea

the

Company

Anaconda Wire & Cable
Andes

Kaufmann & Co., Ill Broadway,
City,

#■

lurgical research, along with its broadening activity

J. Lester was admitted to
W.
partnership in Jay

York

Anaconda

continuing to develop its lead resources and metal-

high-octane gasoline and the solders increasingly

out

and

protective glass with

60% lead content. For all these applications
many more, lead is the pteferred metal.
— ,

Copper Company

Anaconda Aluminum

New

-VfV:

and rapidly growing use is in
generation and radiation products

newer

nuclear energy

The
,

paints, porcelain enamels and for sheathing

power

International

Company

Smelting and Refining Company

The Commercial and Financial Chronicle...

(1210)

«p

Electric Pfd. Shares
&.Co.

Read

The Slate of Tiade and

and

Inc.

Dean Witter & Co. headed an in¬

bring outlays for all 1956 to a record $35,300,000,000
$6,600,000,000 above the previous high in 1955.

which on
Sept. 14 offered 150,000 shares of
series

cumulative

5V2%

The

titled

new

week, "Ward's Automotive Reports," stated on Friday last.

-V 7

stock will

the

toward

used

the

payment of short-term loans
incurred for a construction pro¬

which is expected to total,
$41,047,000 for the period
1956-1960, including about $7,198,000 budgeted for 1956.
The
company anticipates raising in the
gram

about

future

near

additional

funds

foi

the construction program

offering

At the

77,000

stock

common

through
shares of

its

Mercury

kingdom, and is engaged
principally
in
the
production,
transmission, distribution and sale
of electric energy for domestic,
commercial,
industrial,
agricul¬
tural, street railway, and govern¬
a

mental purposes on the Island

Oahu, Territory of Hawaii.
The
the city of Hono¬

lulu, sugar and pineapple planta¬
tions, Army and Navy establish¬
ments, and many towns and vil¬
lages.
Operating revenues for the 12

the 35% upturn 7
scheduling of 64,414 units from last week's Labor Daycrimped turnout of 47,771 autos. Hence, through last week, total
1956 model output had aggregated to some 6,250,000 units, or only
12% behind the 7,120,000 cars produced during the 1955 model run.,

car

May
31,
1956
$19,830,162 and net
to $3,101,259,
compared with
$18,301,213
and
$2,642,096, respectively, for the
year ended Dec. 31, 1955.
income

674

assemblies, reflecting

1955.

All

the

|E. Burnside & Co., Inc.,
York City, is publicly of¬
issue of 300,000 shares
of
common : stock>; of ; Fortune
Petroleum Corp. at $1 per share as
an

speculation, ..'"v--r77- .7 .p.*

v/V.-V"7'

Fortunp. Petroleum. Corp.', or¬
ganized i|i Delaware in June, 1956,
is
engagfd in developing a 320^
,

oil-lease

Santa

County, Calif., of which
300

acres

Barbara

total of
is considered proven.
a

According to the prospectus "no
single method of estimating spe¬
quantitative amounts of re¬

cific

coverable oil

be considered
reliable
although ^ there is no
doubt that there are
literally mil¬
lions of barrels in place beneath
this 320 acre tract."
It is intended that the proceeds
may

derived from the Sale of the stock
will be used to pay for
drilling
and

equipping of three wells,
working capital and other gen¬

eral

corporate purposes.

Giving

effect

fi¬

new

600,000
of

shares
an

common

authorized issue

500,000 shares.

stock,
of

2,.

Burd, Jacwin & Costa

BUrd,
President; Joseph A. Costa, VicePresident; and Roslyn Jacwin,

Secretary.

Philip H. Diamond
Philip H. Diamond, member of
American
Stock
Exchange,

the

passed away

Sept. 10.

13.4%
;

Sept.

1956, totaled 679,611

decrease of 22,381 cars or 3.2% under the corresponding ;
1955 week, but an increase of 78,086 cars, or 13% above the corresponding week in 1954..
l,
\
:

Car output for

Corp. divisions reported

consecutive week

while

car

"zero"

lines

output, each

was

in its third week of such activity.

according to

attain

prediction of the United States
a two and one-half year high
because of Government soil

;

the

Last week's car output rose above that of the previous week
by 16,643 cars, while truck output was higher by 4,043 vehicles
duiring the week. In the corresponding week last year 122,263 cars •■?.
assembled.

week the

agency reported there were 18,698 trucks made
in the United States. This compared' wtih 14,655 in the previous
week and 21,348 a year ago.

$11,600,000,000 a year in the preced¬
ing quarter and $11,000,000,000 in July-September of last year.
Not since the first quarter of 1954—-when the rate was $13,700,-

CanadiatiH3utput last week was placed at 1,908 cars and 1,601
trucks; In the previous week Dominion plants built 2,475 cars and
1,661 trucks and for the comparable 1955 week, 2,416 cars and

at the rate of

ran

Last

net income,

higher" in the July-September quarter.
Income

week

and 21,348 trucks were

the Department declared, "could well
(seasonally adjusted annual) rate of $12,000,000,000 or

35% Upturn

the latest week ended Sept. 14, 1956, according ;
Reports," advanced 35% from that of the

output, states "Ward's."

Department of Agriculture, will hit

Realized

Preceding Labor Day Week

industry assembled an estimated 64,414 cars,
compared with 47,771 (revised) in the previous week. The past
week's production total of cars and trucks amounted1 to 83,112
units, or an increase of 20,686 units aoove tile pxeccuiirg wwv!>
Last

re¬

strengthen

the Past Week Showed

preceding Labor Day week.

production for

undergo major

to "Ward's Automotive

during the current quarter, mainly
bank payments and wool subsidies.

•

457 trucks.

000,000—has the income pace topped $12,000,000,000,
Actual realized net income totaled

Business Failures Increased

$12,000,000,000 in 1954, then

declined to $11,300,000,000 last year. The Department last month
forecast a slight rise this year—the first since 1951—and a spokes¬
said

the prediction still stands. He estimated
month that 1956 income may come close to $11,600,000,000.
man

Friday

Steel Output

^7 7
United

States

Commercial

industrial

Slightly the Past Week

failures

edged

slightly to 203

in the preceding week, Dun &
Bradstreet, Inc., reports. The toll exceeded the 191 occurring in
the similar week last year and the 195 in 1954, but remained 25%
below the pre-war level of 269 in the similar week of 1939.
involving liabilities of $5,000

Failures

Scheduled This Week at 99.6%

increased to

175 from 172 last week and 161 a year ago. While small failures,
those with liabilities under $5,000, rose to 28 from 24, they were
below the 30 of the comparable 1955 period. Liabilities in excess

of Ingot Capacity
ingot production

steel

by Jan.

and

in the week ended Sept. 13 from 196

last

capacity should reach
1, which 4s 3,600,000 above this year's
level, "Steel" magazine declared on Monday of this week.

132,000,000 tons

$100,000 were incurred by 14 of the week's failures
in the previous week.
;

against
7
,

All industry ahd trade groups except commercial service had ;

higher tolls than in the holiday week. Casualties Tin commercial
weekly said expansion projects 7; service declined to 18 from the 24 of the previous week. There >
was a considerable year-to-year rise in failures among retailers.;
already have increased ingot capacity about 1,000,000 tons oyer the
However, the manufacturing toll fell below the 1955 level, while
Jan. 1, 1956, capacity of 128,363,090 net tons.
7
other lines held relatively steady.
.\
Ingot expansion programs under way or announced by 26 <:
steelmakers total 14,309,700 net tons, with completion dates ex- 7.77 .7 Six of the nine major geographic regions reported increasesin the week just ended. The week's only declines occurred in the tending into 1959. "Steel's" scoreboard of expansion last? March i"
Middle Atlantic States, down to 59 from 73, and in the New
showed 14,216,700 net tons under way or announced.
7
V .England States, off to 4 from 5. There was no ciiaxiee in t ie i^asc
-<7 Capacities*
expected to be reached on Jan. 1 of each year,
South Central toll. Mixed trends from 1955 prevailed, with four
1958-60, are: 1958, 138,000,000 net tons, a 4.5% increase over 1957,
regions having higher failures, four regions having lower failures 1
at an estimated cost of $1,500,000,000; 1959, 143,000,000 net tons, a
and one region remaining at last year's level. The South Atlantic >
3.6% increase over 1958, at an estimated cost of $1,250,000,000;
and West North Central States reported the sharpest rises, with
1960, 148,000,000 net tons, a 3.5% increase over 1959, at an esti¬
tolls over twice as heavy as a year ago.
mated cost of $1,250,000,000.
7
7
Wholesale Food Price Index Holds To Mild Advance 77
Steel expansion matches general capital spending for new
national

metal working

facilities which is expected to hit $35,000,000,000 in 1956, as com¬

of Previous Week

pared to $28,700,000,000 last year. The tight money policies aren't
expected to materially^ affect general plans, at least in the short
run.

Continuing the mild
-

7
A spot check of 50 metalworking firms by "Steel" indicates
■they expect to boost their, capacity by, 16% in ,1957 despite the
higher cost of borrowing money.
\
■'/
.

upward

trend

shown

the preceding

week/ the wholesale food price index, compiled by Dun & Bradstreet, Inc., advanced to $6.07 on Sept. 11, as against $6.05 a week
earlier. The current level is still 3.0% under the $6.26 recorded;
at this time

ago.

year

Th^-steol ingpt capacity completed so far this, year helped
steelmaking operations reach a high percentage of capacity quickly
after the steel workers' strike.
The rate of operations is- still
computed on the Jan. 1, 1956, capacity. '
.

Sept. 16, production of steel ingots rose to
of capacity or 2,474,202 net tons, 2.5 points over the pre¬
ceding week. This equals the year's high mark set at the end
of April.
.
*1
♦
Strong demand for steel the world over is boosting prices of steel imported into the United States.
For extended deliveries,
western European countries have raised prices anywhere from 7
5 to 65 cents per 100' lb7
7:7:^;7"7^T .77.77.7:7777:'''77-77':.T;
100.5%

Moving higher in wholesale cost last week were flour, wheat,
corn, oats, beef, bellies, lard, butter, beans, rice, steers and lambs.
Lower in price were rye, barley, hams, sugar, cocoa, peas and hogs.
The index represents the sum total of the
31

price

per

pound of

foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.
raw

Wholesale Commodity Price Level In Latest Week Scored

.Domestic1 steel prices

BAYSIDE, N. Y.—Burd, Jacwin
& Costa, Inc. has been formed with
offices at 226-15 Sixty-ninth Av¬
Frank H.

-7

-7-■

.•

Declined

Above That of the

are

steady,«

"Steel's"

price

com¬

scrap

are

week ended

Loadings for the

cars,

U. S. Car Output

posite

Officers

' 7 77

v•

Sept.

28% lag behind the 5,763,540 built in

Lincoln and American Motors continued to

model

1957

Opens

enue.

?>£,' 7 ';"7"' •'•* :S■.

in Week- Ended

Loadings of revenue freight for the week ended Sept. 8, 1956
which were affected by the Labor Day Holiday, decreased 104,755
cars
or
13.4%
below the preceding week, the Association of
American Railroads reports.
" ;
/'*•'
\
*

In the week ended

•

ihis

nancing, there will be outstanding
out

Chrysler

second

visions.

The

Willis

' *7-' :'7"

Below-the Preceding Week Due to the Labor Day Holiday

Expenditures for new equipment and construction in the steel
industry are expected/to» total $1,200,000,000 this year.
f
-

of New

acre

programming the past week was pegged at 18,698 units,
agency said, up 28%
from the preceding week's
14,655, Year-to-date truck production through last week totaled
some 807,480 jobs, down 9% from the year-ago count of 889,282.

Jan.

Stock at $1 a Share

'•»

Loadings

statistical

Nt.

^
'-if'

Car

Truck

the

amounted

Fortune Petroteum

Oh a calendar year basis/ "Ward's": observed, car building
since Jan. 1 this year through the past week approximated 4,155,-

ended

amounted

However, General Motors devoted the current week to strong

company serves

and

Farm income,

incorporated in 1891 when Hawaii

fering

common

Hawaiian Electric Co., Ltd. was

months

in 1954. '

week ended Saturday, Sept. 15, 1956,
kwh., an increase above the week
to the Edison Electric Institute.

according

1956,

;
This week's output rose 384,000,000 kwh. above that of the 7
previous week; it increased 716,000,000 kwh. or 6.7% above the i
comparable 1955 week and 2,265,000,000 kwh. over the like week ;

Sept.

time, the end of the 1956 model year drew nearer

1956 model activity, contributing in large part to

stockholders.

was

same

Week

distributed by the electric light

estimated at 11,339,000,000

was

Cadillac sought to terminate such activity on
Friday of the past week, leaving only Chevrolet, Pontiap, Oldsmobile and Buick still to enter changeovers. 7
as

" The net proceeds from the sale

The amount of electric energy

and power industry for the
.

industry, Ford Division joined the swelling
ranks of auto makers in 1957 model building last week with Ply¬
mouth and Studebaker slated to launch their new models this

preferred stock is en¬

sinking fund for the
retirement of 3,000 shares on or
before
Oct.
15, 1957 and each
?Oct, 15 thereafter. 7 The sinking
-fund-redemption price is par. The
$tock is redeemable at the option
-of the company at prices rang¬
ing from $21.50 for shares re¬
deemed on or prior to Oct. 15,
1961; to $21 for shares redeemed
thereafter.
- '•
of

In the automotive

($20 per share)
dividends.
This of¬

fering has been completed.

Electric Output Turns Upward the Past

....

pre¬

Co., Ltd., at par
accrued

•"

ended

ferred stock of Hawaiian Electric

and

Indnsby

would

vestment banking group

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.
*

Bankers Sell Hawaiian continued from Page 4
Dillon,

Thursday, September 20,1956

on finished steel remains at $137.75 a net ton. Steelmaking
pushed up again, raising "Steel's" price composite on it to
another new record, $59.67 a gross ton.
7lt;7;,^?'77/7(77^:77-.y7/

The American Iron and
Steel. Institute announced that the 7
operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 99.6%
of capacity for the week
beginning Sept. 17; 1956, equivalent to
2,452,000 tons of ingot and steel for castings as compared with

100.6% pf capacity, jtnd 2,477,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1956 is

Highest Point Since Mid-April 1952
7

The

general commodity price level, as measured by the Dun

& Bradstreet daily

wholesale commodity price index, turned up¬

ward

the past week to reach the highest since mid-April 1952.
The index registered 298.89 on Sept. 11, as compared wtih 296.58
a week earlier and 278.05 on the like date a year ago.

Grains

irregular last week, reflecting variable weather
Fall harvesting season progresses.
Wheat was7
quite active and firm with some buying influenced by an expan¬
sion in export sales of United States, wheat to foreign consumers.7
Corn was in good demand.
Prices advanced under limited pro¬
ducer offerings which were much below processor needs.
Yield
prospects for corn showed a slight improvement during August
conditions

were

ais

the

but sunshine and

warm

weather

are

needed in the northern section

based

annual

capacity of 128,363,090 tons

For the like week

Jan.

1, 1956.

month ago the rate was 95.8% and pro¬
A year ago the actual weekly production
placed at 2,320,000 tons or 96.1%. The operating rate is not

duction
was

2,359,000 tons.

of the belt to mature the crop.

Oats showed strength aided by

preliminary estimate which called for
than

that forecast

soybean futures

month ago.

the

yield somewhat smaller

Volume of trading in grain and

Chicago Board of

Trade last week

was

Volume

184

Number 5570

The Commercial and Financial Chronicle

(1211)
reduced by the

bushels,
a

holiday, but daily average sales, totaling 50,200,000
up from 45,300,000 the previous week and 40,000,000

were

Acme Steel Common

Ayy,;;;

year ago.

Business in all types of hard wheat bakery flours continued
inactive with small price changes late in the week offering little

price advance.

Coffee scored

moderate rise

reports of buying by roasters

in the spot market of mild coffees at
slightly, higher prices, and a
firmer position, especially for Colombians.

Buying interest in the domestic raw
active and prices trended slightly lower.
f

market

sugar

livestock

market

featured

was

per

common

Acme is

stock

steel

share.

facilities

near

of the

one

and

largest

The

man¬

year

distributors/, of

steel

1885.

factures

half

kitchen

stitching
subsidiary manu¬
metal furniture,

cabinets

and

were

ended

June

$64,161,834

was

company, has
paid
cash
on the common stock
in

cents, making
share. '

' :

total of $1.50
7

per

■"

•'

sinks.
;

Form Security Investors
Security Investors Company has

Church

months

share.

been

1955.

1956

per

year since 1901.
So far this
three quarterly dividends of

increased from $39,999,258 in 1946

$110,133,016 in

$1.93

40 cents per share have been
paid
and
with
each
an
extra
of
10

sales

first

to $3.12 per
stock and

common

tubular

Acme has been in business since
Its annual net- sales have

six

the,

dividends
each

strapping and strapping tools

equipment.

the

$3,814,167,

its

Net income for 1955

$6,172,119, equal

for

or¬

and equipment and wire

The balance of proceeds will be
added to Acme's working capital.
Acquisition of Newport Steel,
": in Aline witty ^Acme's expansion

advance in prime steers.
Small receipts and higher wholesale
beef prices helped to lift values to the highest levels since March
1955.
V:.

was

Riverdale, 111. plant at a cost of
approximately $15,000,000.

Newport, Ky. under an agree¬
ment ,made iji July of this year.

sharp

Steel Co.

other

411,451 a week earlier, butt were still weil aqove tne <i48,0<&
reported at this time a year ago. Lard trading was more active
and prices registered modest gains for the week.
Chicago

ufacturers

Acme

build

payment of
$16,450,000. for its
purchase of Newport Steel Corp.

prices were down slightly at the close, reflecting
lagging manufacturer interest and weakness in the Loncion mar¬
ket" Warehouses stocks of cocoa declined to 407,807 bags from

riod of 1955.

own

ganization, the company plans to

Out of the proceeds of the sale
of these additional shares Acme
will use $9,950,000 to complete the

Cocoa

The

Stock Offered at $33

priced at $33

less

was

its

semi-finished steel.
additional ; supplies
semi-finished steel within its

gives; .Aqme

provide

An underwriting
group headed
jointly by Blyth & Co., Inc. and
Merrill Lynch,
Pierce, Fenner &
Beane yesterday
(Sept. 19) of¬
fered for public sale 400,000 shares
't

inducement to more extended coverage. ,A; liipited volume
developed in durum blends and semolina in late dealings as mills

or no

protected against

■

program,
source

For

30,

the
1956

compared

wjltl? $53,489,079 for the like

pe¬

formed

engage

Harold

the

with

offices

Street, New York City.^to
in

securities

Ignatoff is

firm.

;

business.

principal of

;"£•

•
:

Li—i

Cotton prices moved in

a narrow range last week.
Activity
in spot markets was only moderate as traders awaited the issuance

the

official

production

crop

Agriculture.

estimate

tne

Department

The report, based on

Sept. 1 conditions, estimated the 1956

yield of cotton at 13,115,000 bales, the smallest since 1950.

Although this
forecast, it
inary

crop

estimates

•production in 1955

(1945-1954)
in good

drop of 437,000 bales from last month's

was. a

considerably higher than the

was

issued

bales.

CCC

loan

entries

average

continued

volume, totaling 62,400 bales in the week ending Aug. 31,

against 40,200 the week before.

•

Retail Trade Volume Holds

Total cotton

14,721,000 bales and the 10-year

was

13,098,000

was

of prelim¬

average

during the past week.

Although

retailers

Jback-to-school

clothing and

Steady in Latest Week

noticeable

reported

women's

Fall

gains

apparel,

children's

total retail

.trade remained at the level of the previous week.
Volume in

with

a year

used

automobiles

new

dollar

high and steady

was

considerably below those of

cars

;

ago.

The total

and

new

dealer inventories of

volume of retail

Wednesday of last week

was

trade

the period

ended

from 1% below to 3% higher than

year ago, according to estimates by Dun &
Bradstreet, Inc.
Regional estimates varied from the comparable 1955 levels by the

following percentages: New England —1 to -j-3; East —5 to —1;
South and Middle West -j-1 to +5; Northwest—2 to
-f 2; South*
west

+2 to +6 and Pacific Coast 0 to +4.

A continued rise in the

■

buying of children's Fall apparel

reported, with sizable. year-to-year gains.

was

Purchases of women's

FaH'coats, dresses and sportswear expanded* moderately.! 1 Sales fof
woolen skirts

slight

and sweaters exceeded

increases

Fall

suits

and

those .of last year.

dress

volume in men's apparel fell below
There

was

the

Despite

total

dollar

that of the previous week.

slight decrease in the buying of home furnish¬

ings thck past week and volume
similar 1955 week.

shirts,

was

slightly below that • ofr 'the

•

While the call for upholstered living room chairs and
occa¬

ssional furniture

•dining

rose

sets

room

moderately, interest in bedroom -suites anc|
noticeably. Retailers reported a drop in

fell

purchases of floor coverings and draperies!
blankets
A

below

was

slight

gain

'occurred, but
of the

that

sales

the

year

buying

While

grocers continued

;

' *

television

major appliances

preceding week.

Volume in linens and

ago.'

■

were

to report

sets

•

radios

behind the level

•

•-

decline in

and

the call for

'-canned goods last week, sales of frozen vegetables and
juice con¬
centrates expanded noticeably.
Volume in fresh meat, poultry
,and butter

rose

somewhat.

There

Fall

moderately, but purchases of eggs and cheese fell
•

♦

marked

rise

in wholesale

and

apparel

textiles

the

past

week

times behind schedule.

level

the

orders

with

* ~

V
for

women's

deliveries some^

Volume in home furnishings and
the

•

was

week.

food products remained at

Total

wholesale

trade

slightly

exceeded that of the similar 1955 period.

Department store sales

;
the

on a

country-wide basis

Financial emergencies often arise when least expected.' And "rainy*dayM savings
aren't

always adequate to meet them

perhaps should not be disturbed.

taken from

Federal Reserve

Board's index for the week ended
Sept. 8,
above those of the like period of last
year.
In the preceding week,
Sept. 1, 1956, an increase of 2% was re¬

That's when

Beneficial loan

can

helpful. The

amounts are small,

averaging

1956, increased 4%

ported.

For the four weeks ended Sept.
8, 1956, an increase of 5%

.was recorded.
of 4%
;

was

For the period Jan. 1, 1956 to Sept.
8, 1956
registered above that of 1955.
r

Retail trade volume in New York

by cooler weather and
the like period

numerous

year ago,

rose

$400, but they do

families, they help the

big job for the families they help. And by helping

whole community. The Beneficial Finance System has

gain

been

City the past week aided

promotions

around

2% to 4% above

7-'...-

"...

providing this vital financial assistance for more than 40 years.
-V
y
'•/77^A777;y77^Ay:
;7 -:7.--7''7
\7:<-77x;
a BENEFICIAL loan is for a beneficial
purpose."

•7:V'>r>*f

according to trade observers.

According to the Federal Reserve Board's index, department
store sales in New York City for the
weekly period ended Sept. 8,

1956, decreased 3% below those of the like period last
the preceding

week, Sept. 1, 1956,

change

was

the four weeks ending Sept.
8, 1956, an increase of 1%
tered.
For the period Jan.
1, 1956 to Sept. 8, 1956
recorded

rise of 4%

above that of the

1955.

year.

recorded.
was

the

mance

For

regis-

Beneficial

index

Building, Wilmington, Del.

corresponding period in
-y.

MORE THAN

1000 OFFICES IN THE UNITED STATES, CANADA, HAWAII AND ALASKA

The

(1212)

Chronicle

Commercial and Financial

Thursday, September 20,1956

...

additions

indicates
since

Now in

Securities

Junction, Colo.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Center, Grand Junction, Colo. Underwriter—Ralph M.

•

.Van Atetyne,

Co.,Grand Junction,/Cold. "

.Noel &' Co., New York.^

„

Bridgford Packing Co;,* Anaheim;-Calif..
13 (letter of notification) 222,222 shares of common

Price—$1.35 per

$1).

(par

share.AProceeds—|To >
.

Investment Co., Ltd.,* Honolulu,

Brown

shares of common stock (par $1), .
plus a selling commissioiv of *
7%% of the offering price., Proceeds—For investment.
Business—A diversified, open-end Investment 'company
of the management type. Underwriters-Brown Manage- r
ment Co., 833 Alaska St., Honolulu, Hawaii.
; .P
11 filed 60,075

July

Price—At net asset value,

(10/2)

Brush Beryllium Co.

Weill, Blauner & Co., Inc. of New York.

$1),

Sept. 11 filed 400,000 shares of common stock (par
of which 375,000 shares are to be offered publicly

and
(9/26)
25,000 shares are to be offered, for. subscription by comAug. 27 filed 180,000 shares of common stock (par $1),
jyion stockholders. Price—$10 per share. Proceeds—For
of which 120,000 shares are to be offered for account of
selling stockholders. Price—To be supplied by amend-.. expansion program., Underwriters—Kuhri,. Loeb & Co.,
New York, and McDonald & Co., Cleveland, O., for
ment. Proceeds—For general corporate purposes. Underpublic offering. Stockholder offering is not underwritten.
writers—R. S. Dickson & Co., Charlotte, N. C.
I •

Price—To be supplied by amendment. Proceeds
stockholders. Underwriter—Kuhn, Loeb

•

—To two selling

Co., New York.
American Federal Finance Corp., Killeen,

obligations, purchase equipment, etc. ;Office—1308
Patt Street, Anaheim, Calif.' Underwriter—J.v D. >
Creger & Co., 124 North Bright Avenue* Whittier, Calif. ;

pany to its affiliates for money borrowed for working
capital; Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,

and

Harriman Ripley & Co., Inc. /Bids—To be-reto 11 a.m. (EDT)-.on Oct. 11. at 49 Federal.
'
/'/_. -• A "
'/•* ■ 7 '

Co.;

ceived

Corp., Philadelphia, Pa.
June U filed $600,000 of 6% convertible subordinated
debentures due June 15, 1968. Price—100% of principal
amount. Proceeds—To retire indebtedness of the com¬

(9/26)

issue

pay

Atlas Credit

Sept. 5 filed 200,000 shares of class A common steck (par

revised

/.Street, Boston,,Mass.

stock

stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
Underwriter — To be
•named-by amendment.
April 30 filed 2,000,000 shares of common

items

Aug

/Atlantic Oil Corp., Tulsa, Okla.

New;' York. /

of common
by amend¬
ment.Proceeds-i-To selling stockholders. Underwriter—,

AlleghenyLtidlum Steel Corp.
Aug. 31 filed $16,377,000 of 4% convertible subordinated
debentures due Oct. 1, 1981, being offered for subscrip¬
tion by common stockholders of record Sept. 19 at the
rate of $100 of debentures for each 23 shares of stock
held; rights to expire on Oct. 3.- Price—100% (flat) to
stockholders.
Proceeds —To repay outstanding obliga¬
tion^ and for expansion program.. Underwriters <—The
First Boston Corp. and Smith, Barney & Co., both of

$1.25).

Sept. 5 (letter of notification) 45,000 shares
stock (par 10 cents). Price—To be supplied

•

iAllentown Portiand Cement Co.

Corp., East Newark, N. J.

Astron

Abundant Uranium, Inc., Grand

Feb. 23

Davis &

•

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
car paper and
to extend the company's operations into,

Sewing Centers,

Atlas

Inc., Miami, Fia.

"• .* /•*;>>'
-ri-r/'/rrA * Budget Plan Corp./V.
Sept. 7 (letter of notification) 5,000 shares of Class A
July 13. (letter of notification) 600,000 shares of common
common stock
(par $1). Price—$5 per share. Proceeds / stock; (par 10 cents) to be offered for subscription by
the field of hew car financing* Underwriter—None, J. J.
—To establish additional offices. 'Office—3 Kings High- \
common /stockholders at rate of 0.46875 of a share for
Fain is President.
t
' '
way East, Haddonfield/ N. J; Underwriter^None.
>
" /
each share held.
Price—10 cents per share. Proceeds—
'American Insurance Co., Newark, N. J. (9/21)
/
' For'general corporate purposes; Underwriters—Berwyn
•^ Bureau of National Affairs, Inc. /
L '
T. Moore &» Go.,- Louisville, Ky.; Gearhart & Otis, Inc.,
Aug. 31 filed 1,750,000 shares of capital stock (par $2.50)
Sept. 17 (letter of notification) 500 $nares. of common :
to be offered in exchange for outstanding 1,750,000 shares
New York, and Crerie & Co., Houston, Tex.
*
stock (no par) to be offered * td. employee$. Price".'f4 $32 :
Audubon Park-Raceway,

Inc.-

of capital stock of American

Automobile Insurance Co.
share-for-share basis. This offer
is conditioned upon deposit of at least 1,400,000 shares of
Automobile stock.
Kidder, Peabody & Co. will head
group of dealers to solicit tenders. The offer is expected
about Sept. 21 to Oct. 11.
/•'/ v
of St.

Louis, Mo.,

per

ton, D. C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.

July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds — For equipment, exploration, drilling, working

•

American Insurers'

Development Co.,

?yeb/'10 filed 400,000 shares of
Price

—

$2.50

business.

per

Office

share.
—

common

Proceeds

—

Birmingham.

stock

(par $1).

To expand

service

Underwriter

Ala.

—

Odess, Martin & Herzberg, Inc., Birmingham, Ala. State¬
ment withdrawn on Aug."2. 1
"
'
J*
'
•

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.
•

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 one hew share for each 10 shares
held; rights to expire on Nov. 5, 1956. Price—At par
($100 per share) payable in one or two payments/ Pro¬
ceeds—For expansion of plant and for. advances to, and
investment

stocks

of,

subsidiaries.^

Underwriter—

„

(

Bahamas

Felicopters, Ltd.

(10/2)

July 13 filed 300,000 shares of ordinary (common) stock
(par £1 sterling). Price—To be supplied by amendment.
To purchase a 49% stpek interest
Technics, S. A., fbr approximately $500,000, to
$200,0C ► down payment on three S-58 Sikorsky
ters to cost a total of $1,025,000, and to retire
Proceeds

—

in Aero
make

New York.

•*

Aug. 30 filed 328,723 shares of common stock (par $4).
Price—To be supplied by" amendment. Proceeds — To
Estate of'Edmee B.

each

Lee Higginson

(9/27)

Greenough, deceased. UnderwriterCorp., New York.
>
■

Arden Farms

■

six

(with

oversubscription priv¬
Price—$31.50 per

Proceeds—To retire bank loans and for construc¬

tion

Dealer-Manager—Smith* Barney & Co.,
' '
-• / '
►,
'
-

June 15 filed

program.
New York.

holders at the rate of $10

• Barium
Steel Corp.
(10/1-5)
Sept, 11 filed $6,500,000 of 5 J/2% convertible debentures
due
1,968,. Price
»
To be supplied by amendment.
Proceeds — $2,687,500 to pay mortgage loan to certain
subsidiaries and guaranteed by Barium Steel. Corp.;
about $3,000,000 for capital improvements; and for other ,f

$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¬
principal amount of debentures
held, while the common shares
subscription by common stock¬

'for each preferred share

are
being offered for
holders at the rate of one share for each 10 shares held :

July 10; rights to expire on Sept. 25.
Price—
debentures, 100% per $100 principal amount; for
stock, $12.50 per share. Proceeds—To repay bank loans.
as

For

Underwriter—None.

Statement effective July 10.

• Artie Circle, Inc., Salt Lake City, Utah
Sept. 10 (letter of notification) 33,000 shares of common
stock.
Price
At par ($6 per
share). Proceeds — For
—

•operation of
East 9th

"Drive-in

Ice

Cream

Store."

Office—135

St., Salt Lake City, Utah.— Underwriter—None.

Ashtabula

Telephone Co.

by amendment.

ate purposes.

Proceeds—For general
Office-4616 Park Ave.,

corpor-*

corporate purposes.
and

Allen

Underwriters—Lee Higginson Corp.

Baton'Rouge 'Water'''Works'Co.'

—For extensions and betterments to water system.

—131

Lafayette

None.

St.,

Rouge,

Baton

Bentonite

La.

Office

Underwriter—
'

California Electric Power Co.

Probable bidders;4" Hal^ey, Stka'rt & Co. Inc.;
Shields & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Blyth & Co., Inc.;
The First Boston" Corp.- and Salomon Bros. & Hutzler
(jointly); Lehman Brothers; White, Weld & Co. Bids-L
Expected to be received on Oct. 9.

property.

•

share. Proceeds—For min¬

expenses.
Office—290 N.. University Ave., Provo,
Underwriter—Thomas Loop Co., New Orleans, La.

Pa.

(10/15-19) ' ;

July 30 filed $8,000,000 of 5^% sinking fund debentures '
due Aug. 1, 1971, and 1,600,000 sharer, of common stock

in units of $50 of debentures
which will be separ^
ately transferable until Aug. 1, 1958). Pri«e — $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 real
(par one cent) to be offered

activities,

9,300,000 shares of comce»t). 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.
one

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

—

and for general corporate purposes.
Blair & Co. Incorporated, Philadelphia

New York. Latter has agreed

sons

300,000
selected

pected

latter

Century

(letter of notification)
(par

Philadelphia,

Corp.,

Centers

Big Horn Mountain Gold & Uranium Co.
stock

common

by/lit

part

to purchase an addi¬

shares and reoffer them to per¬
$1.10 per share. Offering—Ex-

of September.

Controls

Corp.,

■

Farmingdale,

n. Y.

Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and
development;
expansion; equipment; and other cor-,
porate purposes.

Underwriter—None.

Century Controls Corp.,

Farmingdale, n. Y.

120,000 shares of common stock (par $1).
Price—At market (over-the-counter price in New York).
Proceeds—To selling stockholder (Ray, Daisley & Co.,

Aug. 27 filed

—

Denver Club Bldg., Denver,
mawer

& Co., Denver. Colo.

Colo.
\

Underwriter—Birken-.
.

Philadelphia

Pittsburgh

San Francisco

Private IVires

all

offices

Chicago

Cleveland

preferred share for each
11, 1958.
—To

bidders:

common

share held

of Sept.

Proceeds—To reduce bank loans. Underwriter
determined.by competitive bidding. Probable
C. Langley & Co.; Stone & Webster Secu¬

rities Corp.;

Underwriter—None.

(9/24-28)
subordinated de¬
40,000 shares of common stock (par $1) to

Century Food Markets Co.

Valley Gas & Electric Co. (10/11)
Aug. 15 filed 25,000 shares of cumulative preferred stock
(par $100), of which 1,430 shares are to be of;ered for
subscription by common stockholders (other than East¬
ern Utilities
Associates, the parent) on the basis of one
Boston

Inc.)

Bjackstorte

New York

••

Office—Osawatomie, Miami County, Kansas.

Underwriter—None.

Underwriter

Utah.

Feb.

Petroleum Co.

Carmel

Aug. 24 (letter of notification), 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For expenses
incident to development of oil and gas

tional

ting

(10/9)

Sept. 10 filed $8,000,000 first mortgage bonds due 1986.
Proceeds—To repay bank loins and for new construc¬
tion.
Underwriter—To be determined by competitive

and

per

Colo.
Aug. 13 (letter of notification) $00,000shares of common
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.
Underwriter—Wayne Jewell Co., Denver, Colo. <

estate

Corp. of America
Price—$2

purposes/ Under¬

named later.

Cadwell Mining Co., Denver^

June 29 (letter of notification) 150,000 shares of common

(par $1).

and 10 shares of stock (neither of

Co., both of New York.

Sept. 11.(letter of notification) 6,946 shares of common
capital stock (no par), Price—$43 per share. Proceeds

mon

Ashtabula, Ohio.

Underwriter—None.

writer—To

stock

Sept. 5 (letter of notification) 10,000 shares of common
.-stock (par $25) to be offered to stockholders. Price—To
ho filed

■

Ltd., Toronto, Canada

other general corporate

capital and

ilege) ; rights to expire on Sept. 25.
share.

Co., Los Angeles, Calif.

held

-shares

Mines,

Shore

Burma

bidding.

Sangor Hydro-Electric Co.
Aug. 21 filed 52,796 shares of common stock (par $15)
being offered for subscription by common stockholders
of record Sept. 11, 1956 at the rate, of one new share for

Anheuser-Busch, Inc., St. Louis, Mo.

24th St.,

helicop¬
$175,000
indebtedness. Underwriter—Blair & Co. Incorporated,

None.
•

share. Proceeds — For cash reserves.' Office—1231
N. W., Washington, D. C. Underwriter—None; > :

Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—Washing¬

Salomon Bros. & Hutzler; Kidder, Peabody

Aug. 30 filed $2,000,000 of convertible
bentures and
be

offered in

units of $50 of debentures and

of stock. Price—To be

—To repay

one

supplied by amendment. Proceeds

bank loan, for expansion and working capital.
M. Bvllesby & Co., Inc., Chicago, 111.

Underwriter—H.

Office—Youngstown, Ohio.
•

Chemical

Aug. 17
ctr»#-k

Process

Co.

...

(letter of notification) 15,000 shares

(nar

£1 V

Price—At

market

of common

(estimated

$6,625

Volume

184

Numbers5570

The Commercial and Financial

Chronicle

(1213)
»

share). Proceeds—To go to Alexis E. Post, San Fran¬
cisco, Calif. Underwriter.
Stone & Youngberg, San
Francisco, Calif.
Public offering \withdrawn.
: ;
j
v
per

share).

per

Proceeds—For acquisition of

plartt site, construction

;and

installation: of

operating capitsl.^i^iderwriter
;" *■ Y?"'? v
".■;/X" -.>■

—

Claussen

I ■'-a;

;:i; Chisago City Telephone Co., Chisago, Minn,
v

Sept. 6

(letter of notification)

1,000 shares of

stock tcbe offered to stockholders.

share).

per

Proceeds

For

—

common

Price—At par

Christian

Fidelity',JLiferInsurance Co.

the life insurance; industry;

;

working capital.

v-?v-v

Ga.

fpr subscription by class' A and class

new

stock

$10) to

stock

common

held.

Price

for

debentures,

100%

public, $6.50

share;

per

share.

Proceeds—Together with

funds from private placement

of preferred stock by H.

H. Claussen Sons,

Office—Waxahachie, Tex.

per

Inc.,

I ISSUE

September 20

Unjlerp writers—-The Robinson-Humphrey Co., Inc. and J. H.
Hilsman & Co., both bf Atlanta, Gap. ;»A
j

Insurance

?- '>'"VA dea ler-m a n a gfer)

(Tucker,

will

(Offering

..^Common
$225,000

;

Byllesby '&

,y'

>'/'/
,

Inc.)!. $2,000,000

Co.,.

Gas

•

,•

Pipe Line Corp

stockholders—to

Columbia

•

and

tt40,000-tshares>.iJf'

t-'

;

$r-%

v, x

" -..v

Common

$583,120

$25,000,000

•>

and

135,000

v;*n.

Co.

Trust

& Common

Co.

Lincoln)

Metal Hydrides, Inc...

•

*
.

;■

Oil

Co.

Hammill

Rational Newark

As.,Co.)

'$3,500,000 ^^"7

(Bids U

EDT)

a.m.

Office—9036

(Bids

"f,

about

$4,800,000

Co.

Loeb

200,000

Sewing Centers,

First

National

(R.

Inc

Dickson

Common

Co.)

Courts

and

Co.)

Webster

$7,000,000

Securities

Corp.

95,000

are

.»».

Inc.) $10,000,000

(Wednesday)
Co.)

(Bids

Finance

Seaboard

Co...!

fqr each warrant held.

share for each two shares

one

held

now

one

—

158,025 shares

EDT)

a.m.

;

Price—$9.50 per share.
ProP ceeds—For working
capital, etc. Office
747 Windsor
St., Hartford, Conn. Underwriter—None.
'
VP P

Common

$3,000,000

Lieberknecht, Inc.

dealer-managers)

(letter of notification) 8,000 shares of common
(par $1). Price—$6.25 per share. Proceeds—To sell¬
ing stockholders.
Office
2201 West
Burbank, Calii.
Underwriter—Neary, Purcell & Co., Los Angeles, Calif.
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

Corp.'...Debentures
<fe

Proceeds—For mining
San Rafael, Colorado
Skyline Securities, Inc.,

—

Metallurgical

—

Crestmont Oil Co.

Bonds

Becker & Co.

Underwriter

stock

Debentures

(Hallgarten

Price—50 cents per share.
Office — 1902 ' East

June 28

(Tuesday)

A. G.

October
Fansteel

General Telephone Co. of Indiana, Inc..-Preferred
(Offer of exchange—Paine, Webber, Jackson & Curtis and
*
Stone

-.Debentures

Common

(Offering to stockholders—underwritten by Robinson-Humphrey
Co.,. Inc.; Merrill Lynch, Pierce, Fenner & Beane;
■

stock.

$60,000,000

Gardner-Denver Cc.

180,000

Atlanta,

Culver

Springs, Colo.
Denver, Colo.

(Bids to be invited) $8,000,000

(Hornblowcr & Weeks and

Bank

invited)

/'^w .PPlaN

-:^;:-.P-;a pp-pP^.i;-

Blvd., Culver City, Colo. UnderCo., Denver, Colo.
: P
P/
P\
Mining & Milling Co., Inc.
March 8 (letter of notification) 575,000 shares of
common

r-.¥

California Electric Power Co

;.:A>

Atlas

.'X"

Co.)

October 9

Allentown Portland Cement Co._-Class A Common
(Kuhn,

$3,600,000

•.

Crater Lake

Southern Bell Telephone & Telegraph.,,

.7.

;

.September 26 (Wednesday)

Lynch;'

October 8. (Monday)

(Bids

'»

EDT)

noon

expenses.'

jBonds v
;

Merrill

Fenner & Beane) 55,000 shares

(Bids

$20,000,000

"Virginian Ry, .L.Z^-J...^:-----CEquip. Trust Ctfs.

Eouip. Trust Ctfs.

invited)

Pierce,

;

White,

stockholders—underwritten

writer—L. A. Huey

—i_—...--i.—^—...Common

Western Maryland Ry.__

Co., Lexington,

Kentucky.PP

A- *

Essex Banking Coy ^

Newark

(Offering

•

;

California——.Debentures

(Shearson,

■

Contract Electronics Corp. *. P >'
; Vp Pr : • v
)
Aug. 14 (letter of notification) 600,000 shares of common
stock.: Price—At .par <50 cents per share). Proceeds—
-/-For purchase of stock of affiliates and working capital.

\ October 4 .'(Thursday).

^Douglas

..Common

:
stockholders—underwritten

(Offering .to

CV--'"Weia-'As Co.) 85,206
Virginia Electric & Power Co

Consolidated Oil Management
Aug. 16 (letter of notification) $250,000 of 10-year 5y2%
collateral trust bonds due Sept.
9, 1966.
Office—7352
Central Ave., St. Petersburg, ■; Fla. Predecessor—Lynch
Oil Co.
Underwriter—Security & Bond

stock

,y-

v",1

2 iDebentures

First

(Tuesday)

•

rcSeptember

-l

;

(Wednesday)
EDT)

a.m.

The

Clark, _Landstreet .& Kirkpatrick, Inc.)

and'

co.-) $299,950

;v---Kiisan, \Inc,
_

(Crutt'-nden' &

&
'

£.*■r

;P,

—To

underwritten

{$700,000 debentures
-

•Guaranty Insurance; Cd.^.r___>_Commoii^
roffferih^'tc) stockholders—underwritten by Grimm

--(Bids

3VIarsh^ Steel Co.'

'•

July 31 filed $50,000,000 of notes due Sept. 1, 1976. Price
be supplied by amendment.
Proceeds—To repay
short-term loans and for
working capital. Underwriters
—The First Boston Corp. and
Kidder, Peabody & Co.,
both of New York (latter
handling books). Offering—
p Indefinitely postponed.
-p
:p
P P-';

•

SysieiiL Iric..-^:.:-r-ljebenlBrej

Gas
;

■

Credit Co.

;.October 3
& Com.

debentures

•

■' '

Commercial

JDeVall Land & Marine Constructicui Co^Inc..-Com..
?' *• «*}'
r •' - (Ytekers Brothers}.$3.00,000
' .*

;.•■'

•

(H.

Oct. 3/

$1,500,000

by White, T;
Weld & Co. and Stone & Webster Securities Corp.)
;
,
441,250 shares '
^

•

/ ' ^>September 24. (Monday)
/Century Food' Markefs Co.-i 1 -Debentures

Vv-

Inc.)

v---Equip; Trust Ctfs.

Transcontinental

P'%■'..••••

Anthony & Co.)

Allyn & Co.,

Storer Broadcasting Co.--.J..__,^_>—.iCommon
*
-k
'
^Reynolds & Co.):200,000,shares; •,
"l*

Capital

Peabody & Co.
1,750,000 shares

Zieglet Coal & Coke

':,W

(A.

Debentures

v(Bids noon EDT) $4,650,000

Co.__

Exchange offer—Kidder,

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—Expected to be received up to 11 a.m. (EDT) on

"Seaboard Air Line RR.

jSeptember.21 .(Friday)

;

Columbia Gas System, Inc.
(10/3)
Sept. 6 filed $25,000,000 of debentures, series
G, due 1981.
Proceeds—For construction program.
Underwriter—To
be determined by competitive
bidding. Probable bid¬
ders;

Four Wheel Drive Auto Co...

■

American

CALENDAR

Missouri Pacific RR^v_--->-_____Equip. Trust Ctfs.
.../
A-/'
(Bids noon EOT) $2,700,000
^

Underwriter—Johnson, Lane, Space
Co., Inc., Savannah, Ga.
3
,'V
\

(Thursday)

\yarPrice—

P rants to be good for a period of three weeks.
•$25 per share. "Proceeds—To reduce bank loans.

subsidiary, to retire debentures

and subsidiary's preferred stock; for expansion and other

;-Carrolk Bates, President of, the company.

(no par), to be offered for subscription by holders
P of outstanding common stock and participating preferred
stock on the basis of one
voting trust certificate for
peach eight shares of either class of such stock then held
(with an oversubscription privilege); subscription

of principal

$5.50

and to

class A und/or class B

corporate purposes:

• Columbia Baking Co., Atlanta, Ga^
;
\
r.Aug. 17 filed 26,768 voting trust certificates, each
repre¬
senting the beneficial interest in one share of common

.stock

—

each

amount; and of stock to stockholders,

.Underwriter—None, sale$ to be made through Albert

NEW

Office—19 West 44th St., New York
36,
Underwriter—None. -C'.V

N. Y.

Inc., Augusta,

stockholders at the rate of two-thirds of

common

offered firstand for, period of 30 days to stockholders.
}Pricer--$26 per share. .Proceeds—For capital and surplus,
including $200,000 to be invested in securities common to

•

.•>,

(letter of notification) 30,000 shares of common
$1).
Price—$10 per share.
Proceeds—For

(par

p;.?'' p-lV'

stock (par

common

V.\.

stock

•

writer—None.V/,;^

July 12 filed 20,000 shares of

a/.;/; ...y\

Bakeries,

be offered

($25

construction. •Under-

new

★ Coliseum Films, Inc.
Sept. 12

Colorado Springs Aquatic
Center, Inc.
Aug. 23 filed 500,000 shares of common stock
(par 10
cents)...;Price—$1 per share. Proceeds—For
Aug. 13 filed $250,000 of 6% debentures due 1966, and
swimming
pool and related activities, bowling alley, site preparation
166,000 shares of common stock (par $l),.of which.the-,
including parking^ and land cost ($95,000). Underwriters
.debentures and 16,000 shares of stock are to be offered
^—Arthur L. Weir & Co. and Copley & Co., both of Colorado Springs,
publicly and the remaining 150,000 shares of stock are
Golo.-'VpV.-;p ,,'p \;

building, purchase
equipment, and as
Industry Developers,

and

Inc.

Washington, D. C.

mill

machinery

Md.

(letter of notification) 15,500 shares.of class A
common stock
(par $12.50), to be offered for subscription
by stockholders.
Price—$17 per share.
Proceeds—For
working capital, etc. Underwriter—The Matthew Corp.,

Chinook Plywood, Inc., Rainier, Ore. ;/
Sept. 4 filed 200 shares of common capital stock. Price—
($3,000

Citizens Credit Corp., Chevy
Chase,

Aug. 27

;

At par
.

►

Devall

..Notes

Land & Marine Construction
Co., Inc.
(9/24-28). PrPp'Pp:: P/'pcP
P' "pP VP; '
May 16 (letter of notification) 150,000 shares of coiiomon stock (par $1). Price—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boatf
and working capital. Office—1111 No. First Ave., Lake
Charles, La. Underwriter—Vickers Brothers, Houston.
■

•

Peabody Coal

(The

.Debentures
$35,000,000
*

...

First

Boston

Corp.)

(Kidder,

September 27

.J, Anheuser-Busch,

(Offering

Courts

(Bids

Common

Common
shares

Co.)

EDT)

a.m.

Republic Cement Corp.—

(Vlckers

Carolina

Class A Stock
Inc.)

Power

(Merrill

$1,000,000

Lynch,

•".,■■7; •/

Common

:—»—

Brothers)

;

$2,500,000

Tex.

Incorporated)

$8,000,000

;

(Tuesday)

(Bids

invited)

Dickson

common
a

$30,000,000

cumulative preferred
warrants

purchase

;

Denver, Colo.;
convertible

stock, first series
500,000 shares of

(par 10 cents) to be offered for

.Common

—

Pierce, Fenner & Beane and R. S.
& Co., Inc.) 500,000 shares

non-

(par

$1), and
^tock
subscription initially by
common

stockholders in units of 25 preferred shares and
common shares.
Price—$25.50
(each warrant will entitle the holder to

warrant to purchase five

per

Public Service Co. of Indiana, Inc.——Bonds

$9,650,000

Diversified Oil & Mining
Corp.,
Aug. 29 filed 2,500,000 shares of 6%

Light Co

:P/p pPp.:".; p

Debentures & Common

(Blair & Co.

(Friday)

(AH States Securities Dealers,

£,

$2,850,000

Goal Seal Dairy Products Corp.
>

(Monday)

October 16

September 28

(Thursday)

Centers Corp.

under-

October

328,723 shares

stockholders—156,672

written

Debentures

Brothers)

Blackstone Valley Gas & Electric Co.—Preferred

(Thursday)

Corp.)

$15,000,000

October

Inter-Mountain Telephone Co
♦

(Lehman

$7,500,000

Inc

(Lee Higginson

Corp.)

:—

.Debentures

Peabody & Co.)

Boston

Underwood Corp.
'

Walt Disney Productions.

First

(The

unit

chase

pur¬

one

common share at
any time prior to Dec.
31,
$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. Underwriter—To be named by amendment.

1957 at

October
Barium

Steel

(Lee

(Monday)

October 23

Corp

Higginson

Johns-Manville

Debentures

Corp.

Allen

and

Corp.

Co.)

$6,500,000

Common

—

Co.)

about

650,000

Blyth

&
,

Inc.;

Co.,

The

Madison Gas &

Langley

First

Co.)

Electric

underwritten

Boston

Corp.

$18,000,000

and

by
.

October
V"

& Co.)

stockholders—-no

Bahamas Helicopters,
(Blair

Co.

Gas

(Offering

National
:

$2,500,000

V-

(Offering

Brush

Beryllium Co...

(Offering
;

Kuhn,

public

Loeb

$28,000,000

Public

Service

Electric

cent).

Common
30,000

Detroit

stockholders—to
Stanley & Co.)

underwritten
263,400 shares

Morgan

Gas

Co.—

—

10 cents per share.

Proceeds

—

For

one
ex¬

warrants

Bonds

1968, with
350,000 shares of $1 par value
Price—100% of principal amount. Pro¬

purchase

a.m.

EST)

common

November 27

$50,000,000

Carolina Power
(Bids

&
to

(Tueiday)

Light Co...
be

invited) $15,000,000

stock.

ceeds

(Bids

Common
..Common

Price

* Douglas Oil Co. of California (10/4)
Sept. 17 filed $3,500,000 of debentures due

(Wednesday)
&

stock

—

ploration, development and acquisition of properties and
for working capital.
Underwriter—Columbia Securities
Co., Denver, Colo.

Common
be

—

(Thursday)
underwriting)

Price

Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock
(par

Corp..

stockholders—no

Corp., Carrollton, Tex.
500,000 shares of common
$1 per share. Proceeds

McKeever & Associates, Oklahoma
City, Okla.

$6,000,000

and-to stockholders—underwritten by
Co. and McDonald & Co.) $4,000,000

EDT)

a m

November 14

Common

about $580,000,000

300,000

Oil

filed

(par 1©
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

Preferred

Service

Bank

■p, p

Ltd

Incorporated)

EDT)

a.m.

November

Mobile

(Tuesday)

underwriting)

cents).

(Tuesday)
Bonds

(9ids

!
-

Doctors
Feb.

Power Co

(Bids

—.Common

•

$40,000,000

Ohio Power Co

j
common

American Telephone & Telegraph Co
(Offering

Ohio

:y'[

Preferred & Common

United

Cuban Oil, Inc
;¥ <i:(S. D. Fuller

Common

15,000 pfd. shares and 35,000

& Co.)

be invited)

October 30

68,334 shares

Racine Hydraulics & Machinery, Inc.
(Loewi

;

(Bids

—Preferred

(Offering to stockholders—no underwriting;
"

invited) 170,000 shares

Consolidated Edison Co. of New York, Inc.-.Bonds

(Tuesday)

Service

«*.'■- Long Island Lighting Co
7
(Offering to common stockholders—to
r

Public

Illinois

(Bids to be

(Offering to stockholders—underwritten by Morgan Stanley
&

Central

,;V.

;

Approximately $1,200,000 to retire outstanding

—

>:vcd

notes;

$1,000,000

for

repayment

short-

.Bonds
.

Continued

page

The Commercial and Financial Chronicle

(1214)

Continued from page

stock, to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit. Proceeds—For expan¬
sion and working captal.
Underwriter — None named.
Offering to be made through selected dealers.

loans; $850,000 for construction of a unifying
unit and a topping unit; and $350,000 for operating cap¬
ital.
Underwriter — Shearson, Hammill & Co., New
York.
'
'
'
i

term bank

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—None.
.»Duro Consolidated,

Aug.

$200,000

offered

debentures

of 6%

con¬

stockholders

Aug. 15, 1956.

.—None.

Economy Auto Stores, Inc./

Sept. 13 (letter of notification) 22,000 shares of common
(par $1). Price—$10 per share. Proceeds — For
capital. Office—1130 Bankhead Ave., N. W.,

stock

additional

Fansteel Metallurgical Corp.

facilities

• Fayson LakeCommunity, Inc.
•
Sept. 18 (letter of notification) 3,000 shares of

to be offered in units of

Gold Mountain Lodge, Inc., Durango, Cold#
23 filed 5,000 shares of class A voting common

Aug.

stock

Okla.-

common

stock,

for

June 22

cents).

Inc

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¬

New

Statement effective

Sept. 12.

if Food Mart, Inc., El Paso, Texas.
Sept. 18 filed 90,337 shares of common stock
to

offered for subscription by

common

(par $2)

stockholders

;

9, 1956 at the rate of one new share for
I each eight shares held; rights to expire on Oct. 23, 1956.
Price—To be supplied by amendment.
Proceeds—For
expansion, equipment and working capital. Underwriter

—Shearson, Hammill & Co., New York.
Sept.

Delaware,

Inc.

(letter of notification)
Price—At par ($50 per

capital

improvements.
Underwriter—None.
•

;

Office

200 shares of common
share). Proceeds—For

Four Wheel Drive Auto Co.

Oct.

1971.

Price

—

Narrowsburg,

—

Sept. 12 filed $1,500,000 of
To

(10/2)

convertible
be

debentures

supplied by

due

amendment.

Proceeds—$130,058 to retire 4%% sinking fund

deben¬

tures due July
1, 1957; and for expansion program and
working capital. Underwriter—A. C.
Allyn & Co., Inc.,
Chicago, 111.

;

"jVr,

■

•••

'•

-• /'■ -

★ Gardner-Denver Co., Quincy, III.
(10/9-10)
; Sept.
18 filed $10,000,000 of convertible subordinated
debentures due Oct. 1, 1976. Price—To be
supplied by
•; amendment. Proceeds—To
repay bank loans ($4,500,000
at June 30, 1956) and for
working capital. Business

Rock

drills

and

air

tools, air compressors, pumps and

portable pneumatic tools.

200,000 shares of class A stock (par 10
Price—$5 per share. Proceeds—For expansion
repay outstanding obligations.
Office—Remsen,

Underwriter—All States Securities Dealers,;■ Inc.,
York.

„

Underwriters—Hornblower

stock

For investment
Gunkelman

Jan. 4
mon

& Co., Inc., Chi-

Hills

Mining and Oil, Inc.
(letter of notification)
1,200,000 shares

stock

com¬

(par five cents). Price
25 cents
per share
Proceeds—For expenses incident to
mining operationi
Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York 6. N.
Y.
—

Genco Oil Co.,

Inc.

development

expenses.

Scottsbluff, Neb.
Scottsbluff, Neb.

Office

Underwriter

—

1907

Broadway Ave

Edward

Colling'

General Credit,
Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated
sinking fund
debentures, due Sept. 1, 1971, with detachable
warrants
to purchase 160,000 shares of
participating

preference

•

commdn

preferred

capital.

cents

$1,000 each and 5,150 shares of

offered to

per

Office—Fort

purchasers of preferred

bought.

rate

ten

Proceeds—For

Lauderdale,

Fla.

for

working

Underwriter—

None.
Investment Life

& Trust

Co., Mullins, S. C.

July 9 filed 1,800,000 shares of

common stock (par $1),
1,200,000 shares are to be offered publicity
600,000 shares on exercise of options. Price—$2 per
share to public.
Proceeds—To be added to general op¬
erating funds to enable the company to maintain proper

which

and

insurance

reserves

required by law. Underwriter—None.
Sept. 7.

Statement effective
★

Isthmus

Steamship & Salvage Co., Inc.

May 4 (letter of notification; lou,uU0 snares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
a

ship and equip¬

Office—1214 Ainsley Bldg.. Miami, rF1a
under¬
writer—Foster-Mann, Inc., New York, N. Y. Offering—
Has

been

withdrawn.

★ J-T-J Co., Inc.
Sept. 11 (letter of notification) 60,000 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—
For further expansion of business.
Office
3116 W.
Davis, Dallas, Tex. Underwriter—None.

Hard Rock Mining Co., Pittsburgh, Pa.
Feb. 20 (letter of notification)
1,000,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.
Proceeds—To purchase machinery and equipment and
for working capital. -Office — 377 McKee
Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa.
Hidden

Dome

Exploration Co., Inc.
May 15 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share).
Proceeds—
For the development of oil and
gas properties. Office—
E.

/•/.

* Joa Co. >'•'•/.///;// i //■/ ///•/;
v-Cr /* ■//////'
July 27 (letter of notification) 110,000 shares of,common
stock (par 20 cents).
Priced—$2.50 per-share. Proceeds
—j.'or

411

oaies

and operating capital.
Office—
Highway, Lake Wales, Fla. Underwriter

promotions

No. Scenic

—Anderson Cook Co., Inc., Palm

★ Johns-Manville Corp.

(10

Beach, F1&

•

Sept. 12 filed

(R. F.)

—

Fremont

Ave., Las Vega3, Nev. UnderwriterNational Securities Co., Las Vegas, Nev.

Holden Mining Co.,
Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address
P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B.
Hogan, Inc., Hollywood,
-

—

Calif.

a maximum of 650,000 shares of common
to be offered for subscription by common
stockholders of record Sept. 28, 1956 at the rate of one

stock (par $5)

share for

each 10 shares held; rights to
expire on
Price—To be supplied by amendment. Proceeds
—For plant expansion and
improvements, working cap¬
new

Oct. 17.

ital and other corporate purposes.

Underwriter—Morgan

Stanley & Co., New York.

Johnson-Carper Furniture Co., Inc.'
Aug. 22 (letter of notification) 27,0(1) shares of common
stock (par $5) to be offered for
subscription by stock¬
holders. ;■

Price—$10

per

share.

Proceeds—to repay bank

loans and for working capital.

Office—Riley Road. N. E.,
Roanoke, Va. Underwriters—Mason-Hagan, Inc., Roan¬
oke, Va.; and Strader, Taylor & Co., Inc., Lynchburg, Va.
Kerr Income Fund,
Inc., Los Angeles, Calif.
July 30 filed 400,000 shares of capital stock (par $1), of
which 9,300 shares will be
initially sold at $10.98 per

share.

Additional shares will be offered at a price
equal
the net asset value of the Fund, plus a sales load
of
8%% of such price. Proceeds—For investment/ Invest¬
to

ment

Manager — California Fund
which John Kerr is also President.

Investment

Co., of

★ Kinney Loan & Finance Co.
(letter of notification) $150,009 of 6%-sinking
fund capital debentures, series
A, due Sept. 1,1971. Price
Sept. 11

Hydrometals, Inc., Chicago, III.
Aug. 10 filed 78,275 shares of capital stock

—At
For

(par $2.50)
rights to subscribe to an additional 391,375 shares
(exercisable over a five-year period at $13 per
share).
Of the total, 77,500
shares, plus rights to purchase an
additional 387,500 shares, are to be offered in
exchange
for the license rights and assets of
Hayden Projects, Inc.,
and

the

remaining

775

shares,

plus

rights

additional 3,875 shares, are to be issued to
&

Aug. 24 (letter of notification) 55,000 shares of
common
stock (par $1).
Price—$5 per share. Proceeds—For oil

—

& Sons, Fargo, N. D.
May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock (par $100). Price—$98
per share.
Proceeds
For expenses incident to commercial grain
business. Underwriter—W. R. Olsoa Co.,
Fargo, N. D.

219

each

and

Weeks^New York, and A. G. Becker
Gas

for

offered

stock.

filed

★ Growth Industry Shares, Inn., Chicago, III.
Sept. 17 filed (by amendment) 200,000 additional shares
of capital stock (par $1). Price—At market. Proceeds—

of record Oct.

if Fort

ment.

common stock (par $1)
primarily to individuals and firms who
are
engaged in or closely allied to the: growing and
shipping industry. Price—$3 per share.-.Proceeds—For
working capital, capital expenditures and other corpo¬
rate purposes. Underwriter—None,"
.>

Corp., San

«««„«„

working capital and for purchase of

(9/28)

May 28 filed 600,000 shares of

remaining 40,000
distributing charge. In¬

Francisco, CaliL Underwriter—First National Securities
Co., same city, of which Wiley S. Killingsworth is Presi-:
dent.

and

Growers Container Corp., Salinas, Calif.

pany will declare itself an open-end investment company
and change the offering price of the

shares to net asset value plus a

NT. Y.

vestment Adviser—First National Investment

construction

new

and

the States
of class A

2,950

Gold Seat Dairy Products Corp.

Underwriter—None.

Fund,

debentures

working capital. Business—
Operates year-round resort hotel. Underwriter—None.

Inc..':

Mutual

non-voting

shares of class B stock; and one $7,000
debenture. Price—$10,000 per unit. Proceeds—For pur¬
chase of property, remodeling of present main building,

Newark; N. J. Underwriter—None,

National

$1),

(par

295,000 shares of class B
common stock
(par $1), and $700,000 of 4%
due Dec. 31* 1975, to be offered for sale in
of Texas and Colorado in units of 50 shares

Sept. 11 (letter of notification) 6,000 mortgage units.
Price—$50 per unit. Proceeds — For working capital,
Office—Ford Law Bldg., U N. 2nd Ave., Phoenix, Ariz.

First

Statement effective March 11.

common

★

Price—$50 per share. Proceeds—To pur¬
chase properties and for working capital.
Office — 24

•

Uranium Corp.

Is President.

stock (no par).

if Finance Enterpriser.,

stockholder's

new

Aug* 9 (letter of fiotification) l00f,00d shares of

(N. J.), New York
/an. 18 filed 400,000 shares of. common stock (par lt>
?ents). Price—$1 per share. Proceeds—For plant facil
Ities, survey of property and underground development
Underwriter—None. Maurice Scha^k, Middletown, N. Y.

(10/10)

Muskogee,
Underwriter—Hallgarten & Co., New York.

Commerce St.,

two

International Shipbuilding Corp;-

General

Sept. 11 filed $3,000,000 of subordinated debentures due
Oct. 1,1976.
Price — To be supplied by amendment.
Proceeds—Together with bank loan, for construction of
tantalum-columbium

common

'July 27 filed 26,068 shares of $5 cumulative preference, .stock (par 50 cents)A Price—$2 per share. Proceeds—
stock (par $100) to be offered in exchange for common - For general corporate purposes.
Business—Manuiactures
stock and 6% promissory notes of Carlon Products Corp.
£ outboard cruisers. Office—471 N. E. 79th Street. Miami,
The exchange offer will be subject to acceptance by
Fla. Underwriter—Atwill & Co., Miami Beach, Fla.
owners of all of the outstanding $1,060,000 notes and by
Investment Corp. of Florida
- not less than 39,400 of the 68,837 shares of Carlon stock.
•Aug. 24 filed $515,000 of $60 cumulative preferred stock
Underwriter—None.

Underwriters—Courts & Co.; Clement A.
Evans & Co., Inc.; Johnson, Lane, Space & Co., Inc.; J.
W. Tindall & Co.; and Wyatt, Neal & Waggoner, all of
Atlanta, Ga.
'
'•
; '

new

in the ratio

(par $10)"

General Tire & Rubber Co.f Akron, Ohio

Atlanta, Ga.

•

Sept. 26

each five shares held; rights to expire on Oct. 12. Price '
Telephone Co. of Indiana, Inc. (9/26) / >
Sept. 6 filed 95,000 shares of $2.50 preferred stock (no
—$10 per share. Proceeds—To repay bank loans and for
additions and improvements 10
par) to be offered in exchange for outstanding 5%
property. Officer—Bristol,
cumulative prefererd stock, series A, of Home Telephone
Tenn. Underwriter—Courts &
Co., Atlanta, Ga., will un¬
& Telegraph Co. and Citizens Independent Telephone Co.
derwrite 156,672 shares.'■
"v/£yy*;v;.-■
on the basis of one share of General preferred plus $2 in
/-•
O-vV
cash for each share of Home preferred, and on£ share of V * International Basic Metals, Inc# +
-•
General preferred plus $2.50 in cash for each Citizens ^Jan. 27 (letter of notification) 1,000,000 shares of common stock
(par 10 cents).. Price — 25 cents per share.
preferred share. The exchange offer is. part of proposed
Proceeds—For mining expenses. Office—155 West'South
plan of merger of Home and Citizens into'General* Offer
will expire on Oct. 11. Dealer-Managers—Paine, Web-C Temple St., Salt Lake City, Utah. Underwriter-MVlelvta
G. Flegal & Co., Salt Lake City, Utah.
ber, Jackson & Curtis and Stone & Webster Securities
'

Corp.

Toronto, Canada ' V

"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.

record

; y

stock

common

be offered for subscription

■'of

(9/27)

June 4 (regulation

General

Sept. 6 filed 285,000 shares of

/to

•

X /Eastern-Northern Explorations? Ltd.,
i

•

Inter-Mountain Telephone Co.

•

Price—At par (in denominations
of $100 each).' Proceeds — For acquisition of factory
equipment,* note*' payable and expansion. Off ice—18th
Ave. and Edison Way, Redwood City, Calif. Underwriter

record

notification)

(letter of

vertible

Inc.

fa, 'tp

if Imperial Packing Corp.

Guaranty insurance Co. (9/24) '
Aug. 24 (letter of notification) 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.
Procee4s—For general corporate purposes. Office—Win¬
ter Park, Fla.
Underwriter—Grimm & Co.* New York.

Thursday, September 20,1956

•Sept. 10 (letter of notification) 290,000 shares of common
stock.; Price—At par ($1 per share). Proceeds—To dis*
charge indebtedness, acquisition of additional equipment
and working capital.
Office—408 South Atchison St.,
Anaheim, Calif. Underwriter—None.
r jv
t
;

General

...

Co., New York City,

as a

buy

Cady, Roberts

fee for its services with such

transaction.

Illinois

Bell

Telephone Co. rAug. 10 filed 580,531 shares of capital stock being offered
for subscription by stockholders of
record Aug. 31, 1956,
on the basis of one new share for
each eight shares held:
rights to expire on Sept. 28, 1956. Price—At
par ($100
per share).
Proceeds—To repay advances from
parent,
American
Telephone & Telegraph Co., which owns
4,612,578

(99.32%)

Underwriter—None.

Illinois
•

company's

stock.

par

denominations

working (Capital. Office

$1,000

—

and
'■V

Underwriter—Wachob-Bender
Lincoln, Neb.

Knox

June

each.

Proceeds—

911 "Tenth

Colo.

St., Greeley,
Corp., of Omaha
..

•-*;.,

Corp., Thomson, Ga.
filed

150,000

class

common

stock

(par $1). Price—To be supplied by amendment
(expect¬
$4 per share). Proceeds—To pay loans from
banks
and factors; and for
working capital and other corporate
purposes. Business—Prefabricated
homes, house trailers
ed at

and lumber. Underwriter—Ira

Haupt & Co., New York.

Kusan, Inc,, Nashville, Tenn.

(9/24-28)
Aug. 29 filed 116,624 shares of common stock
(par $1)
Price—$5 per share. Proceeds—To reduce
debt, for new
tooling and equipment and working capital. Business
Manufacturer of toys, electric trains and
various custom
plastic items.

Underwriter—Clark, Landstreet

patrick, Inc., Nashville, Tenn.

Kirk-

Volume

184

Number 5570

The Commercial and
Financial Chronicle

(1215)
Lewisohii Copper Corp.
7-/
1 /.
\
March 30 filed 100,000 shares of
common stock (par 10
cents). Price—To be supplied by amendment. Proceeds

•

Mica

Corn, of America

North

Carolina Telephone Co.
July 24 filed 828,572 shares of common
stock (par
$1) to
offered for
subscription by common stockholders

Aug. 24 (letter of notification)
403,280 shares of common
(par one cent). Price—50 cents
per share.
Pro¬
ceeds—For mining
expenses.
Office—Room 104, Clark
County Court House, Las
Vegas, Nev. Underwriter—
None. 7
,77"V/' ';,7
;
stock

—For exploration and evaluation
of leasehold
properties,
improvements, equipment and. for; general corporate
purposes.
Office—Tucson. Ariz.
Underwriter—George
F. Breen, New York.

Offering—Postponed/ -/-V

at
the rate of two shares
for each share
held; rights to ex¬
15 days
following effective date of registration.
Price
To be supplied
by amendment. Proceeds —
To acquire
physical properties and
%anchises of the
Norwood and Marshville
(N. C.) exchanges of the United
Telephone Co. of the
Carolinas, Inc.; to reduce short
term
^indebtedness; for construction and" modernization

pire

—

•

Lincoln

Associates, New York

■

Aug. 31 filed $2,100,000 of 4% notes due Novi
1, .1971
and *
$1,400,000;. of limited partnership interests,, to be
offered in units of a
$60,000 note and a capital contri¬
bution of $40,000.
Price—$100,000 per unit. Proceeds—
For purchase price of
hotel; and for

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 Corp.";
;Blyth & Co.; Inc.
Bids—Three bids were received
on
Aug) 1, all for 4%s, but were turned down. No
new date
and; for

Underwriter—None.-x
Lithium

♦v

—

improvements,'etc.

•

„

Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first
mortgage pipe line bonds
due 1976.
■

7/777 7 ;7:y,-v

Developments, Inc., Cleveland, Ohio "47"'7

•Juno 2L filed 600,000 shares

^:i-t--

stock

common

program; and for working capital.
Underwriters—R. S.
Dickson & Co.,
Inc., Charlotte, N. C. arid
McCarley &
Co., Inc., Ashville, N. C.
Offering—Expected
'U'

(par 10 7 ★ Middle South
Utilities, Inc., New York'Hh
are to be sold for
ac-/ Sept.
18 filed $200,000 of
the company and 90,000 shares for
participations in company's
selling stockstock purchase
plan for eligible employees of
holders. Price—$1 per
share, by amendment. Proceeds > and its subsidiaries.
company
—For exploration and
development and other general
;
inr
corporate

four shares held.
Price—At par ($25 per
—To reduce demand
note.

New York

heny County, Pa.

V •'-A
*

•

7" t

•

.*>■'•"**

*•'•

•

-7-

'•••

.{,,77;,;'" *.'•7-v

Long Island.Lighting Co. (10/1)

{iviinAralc
June 22 faJd

Searight,

City.
.'•••-•

V .7

Underwriter—George

one

'7:.v.r 7.7:/..

for

April 5 filed 120,000 shares of cumulative preferred
stock,
series G (par $100) (on
Aug. 29 company Suinounced it
now plans issuance of
180,000 share$ of cumulative con¬
vertible preferred
stock, to be first pffered for subscrip'tion by common stockholders of
record Sept. 28,
1956, at
'rate of one preferred share for each 38
shares of common

"stock held);

($100

rights to expire

Oct.

15.

mon

expenses and working capital.
Office— Kimo
Bldg., Albuquerque, N. M. Underwriter—Carroll &
Co.,
Denver, Colo.

Investment, Inc., Las Vegas,

it Motor Credit Co.* Inc., Dunn, N. C.
Sept. 13 (letter of notification)
$100,000 of 6%
income

certificates

mature

Price—At face amount.
as

one

;

Pacific

standing

from

•

stock

•

Federal

(par $1),
estate

insurance;Cor7

Nov. 15, 1955 filed 50,000 shares of class A
common stock
(par $2) and 50,000 shares of class B common
stock
(par.$2>. Price-^To be supplied by amendment. Proceeds

held; rights to expire Oct. 24. Price—: _JTo selling stockholders. Office
Little Rock, Ark.
'? To be supplied by amendment.
Proceeds—For construc- / Underwriter
Equitable Securities Corp.,
tion prGgram.
Nashville,
Underwriter—None. ' - :t '• '
Tenn., and New York, N. Y. Offering —
J
Indefinitely
postponed.. ■
■
1
•
Mammoth Milling
Uranium Co., Inc. 7
7
; L
National Pool Equipment Co.'
7 May. Jl' (letter of notification) -3,000,000 shares of
capital
stock.
/ Aug. 23 filed
Price—At par (10 cents
200,000 shares of common stock (par
per share).
Proceeds—
$1).
Price
4; For mining expenses.
$3 per share.Proceeds
Office—205 Carlson Bldg., PocaFor machinery and
tello, Idaho. Underwriter—Columbia
equipment for a new plant which is
Securities Co., Inc.
being erected for
of
the company in
California, Beverly Hills, Calif.
Florence, Ala.; to retire bank loans and
for working capital.
Business—Manufactures and sells
} -A* Marsh Steel Corp., No* Kansas City, Mo.
component parts of swimming pools and related
Sept. 13 filed $309,000 of 5%% series debentures
equip¬
due 1957
ment.
Office—Birmingham, Ala. Underwriters—Midto 1962 to be offered in
exchange for outstanding 5%
South Securities Co. and
Clark, Landstreet & Kirkpatseries A
debentures, with a cash adjustment for interest
rick, Inc., both of Nashville, Tenn.
accrued on the
Offering—Expected
outstanding debentures. Price—100% of
this week*
principal amount.' Underwriter—The First Trust
• National
Co., of
Sugar Refining Co.
Lincoln, Neb.
Aug. 24 filed 94,803 shares of capital stock
(no par) being
it Marsh Steel Corp., No. Kansas
offered for subscription
City, Mo. (10/3).
by stockholders of record Sept.
Sept. 13 filed $700,000 of 5J/2% convertible
13 at the rate of one new
share for each six shares
sinking fund
debentures due 1966 and 135,000 shares of
common stock 7 held; rights to expire on Oct.
1. Price—$30
,per share.
(par $1). Price—To be supplied by
Proceeds—For working capital and other
amendment. Proceeds
corporate pur.

•

The First Trust Co. of

Neb.; Cruttenden & Co., Chicago, 111.; Boettcher &
Co.,
Denver, Colo.; and Barret, Fitch, North & Co.
and Burke
& MacDonald,
Inc., both of Kansas City, Mo.
/
Mascot Mines, Inc.
|
July 9 (letter of notfieation) 280,000 shares of
common

stock

(par 17% cents).

ceeds—For

payment

Price—25 cents per share.

properties;

repayment

•

Pro*

ad¬

exploration and development and
working cap¬
Office—508 Peyton Bldg.,

Spokane, Wash. Underwriter—Standard Securities
Corp., Spokane, Wash.
*

Proceeds

stock

notification) 120,&00 shares

of common

•

Aug.
to

Corp.,

Metal
be

filed

of record

Inc., Beverly,

85,286

Oct.

Price—To

(9/25)

held; rights to expire

about

supplied by amendment.
Pro¬
of plant and
working capital.

construction

Business—Hydrides
York.

Mass.

common

stock (par
$5)
subscription by common stockholders
about Sept. 25 on the
basis of one new

ceeds—For

Fodium,

for

etc..

calcium, lithium, potassium

Underwriter—White,

Weld

Co.,

and

New

North

American

shares held; rights to expire
share. Proceeds—For

on Sept. 24.
Price—$38 per
capital expenditures. Underwriter

—Morgan Stanley & Co., New York.
North

American

Finance

Co.,

Phoenix,

Ariz.

July 9 filed 500,000 shares of class B
non-voting common
stock (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 Pheonix, and Marcus T. Baumann, Vice-President and
Treas¬
urer, of Tucson, Ariz.

6% subordinconvertible debentures due
Sept. 1, 1966 (each $10
principal amount being convertible into one
share of
common stock) to be offered
for subscription
by stock¬
holders on the basis of
$10 of debentures for each share
held (with an

each

five

about

working

the

basis

two

class A

$1,500,000

capital.

Price

stock

new

stock

common

—

held

$31 per

outstanding class A shares
outstanding debentures; also for

Business—Supplies

for

maintenance-

of-way and mechanical fields; also
equipment for
highway construction industry and for the
processing and mining
& Co., New York.

stock

the

aggregate

industries.

Underwriter—Bache

★ Production Research Corp.
Sept. 11 (letter of

notification) 38,136 shares

(par 10 cents)

be offered to
employees

which up

of capital
6,000 shares will

compensation. Price—$3.33 V3
Proceeds—To pay
outstanding note and for
capital.
Office
Thornwood, N. Y. Under¬
writer—None.
per

•

Aviation,

com¬

ated

*and

—

Inc.
Aug. 6 filed 1,145,011 shares of capital stock
(par $1)
being offered for subscription by stockholders of record
Sept. 7, 1956 at the rate of one new share for each
six

city.

same

for each three shares
/

five

For mining expenses. Office
345 South
St., Salt Lake City, Utah. Underwriter—Birkenma.ver & Co., Denver. Colo.
-

States Se¬

Hydrides,

offered

of certain
outstanding funded debt (approximately $28,000,000) and for general
corporate pur¬
poses. Underwriter—The First Boston
Corp., New York.
Policy Advancing Corp.
7
Aug. 31 (letter of notification) $240,000 of

•.Sept. 12; rights to expire on
Sept. 26.
V share.
Proceeds—To retire all

State

(par $1). Price—$2.50 per share.
Proceeds—For
development of oil and gas. Office—130
South Fourth
St., Las Vegas, Nev. Underwriter—Mountain

curities

each

.7"
shares

purposes.

stockholders

—

Matador Oil Co.

Aug. 24 (letter

for

stock

Madison
Avenue, New York 17, N. Y. Urtderwriter—Wistor R. Smith &
Co., 40 East 54th Street,
New York 22, N. Y.
';77/.^-VV
V//-'-'777.

for

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 out¬
standing stock. Price—At par ($100 per
share). Proceeds
—To repay
temporary borrowings. Underwriter—None.
Niagara Uranium Corp., Salt Lake
City, Utah
April 3 (letter of notification) 2,400,000 shares of
com¬
mon
stock (par 3%
cents). Price—10 cents per share.

vances;

ital.

& Co., New York.
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

tion.

Poor & Co.,
Chicago, III. '
Aug. 23 filed 213,17& shares of common stock
(par $10)
being offered for subscription by class A
and common

Underwriter—Morgan Stanley

New

Lincoln,

the

temporary borrowings and for new construe*
Underwriter—None.
77 .:77; • 7V. 7 777 v/.,

oversubscription privilege). Price—At par.
Proceeds—To retire $16,700 of
outstanding debentures
7 and for working capital. Office—27
Chenango St., Binghamton, N. Y. Underwriter—None.

••

poses.

the

Proceeds—

—

share).

per

preferred

For retirement

■

Underwriters

($100

par

the

rata portion

Peabody Coal Co."(9/26) 7 /
^
"
Sept. 4 filed $35,000,000 of sinking fund
debentures due
1976. Price—To be
supplied by amendment. Proceeds—

•

capital.

Price—At

its pro

Office—527

—

represents

—

equipment, to finance inventory and accounts receivable, for advances to subsidiaries, and for
working

which

and 78.17%
of
purchase 1,399,824

/ Pari-Mutuel Equipment
Corp.
Aug. 24 (letter of
notification) 60,000

•—For

stock

intends

(par $1). Price—$5 per share. Proceeds—Foir
constructor! of 250 race,^ticket machines; for .purchase
: abf 40 iriachines fori issuance of
semi-blank race tickets;
'•« and
for working capital and
general corporate

—

Telegraph Co.

repay

mon

r?/;;;yvv. 7V

writer—None.

—

Offering—Indefi-

cost of writing and
acquiring additional insurance
business. Office—59 St.
Joseph St., Mobile, Ala. Under*

Office—800

Bankers Trust
Bldg.,
Moines, Iowa. Underwriter—T. C. HeridCrson &
Co.,
; Inc., Des Moines, Iowa.

Underwriters—Blyth 8i

Weeks.
7;.;

pay

Des

notification) 2,000 shares of common
Price—$5 per share.> Proceeds—To pay

taxes.

loans.

it Pan-Coastal Life Insurance Co.
Aug. 24 (letter of notification)
33,017 shares of common
stock
(par $1).
Price—$8.25 per share. Proceeds—To

Proceeds—To

these mature. Underwriter

National By-Products, Inc.
l5 (letter of

June

common

stock

-offering.

series

bank

Telephone

stock, and
new

•

year

of short-term

July 27 filed 1,562,267 shares of common
stock being of¬
fered for
subscription by common and preferred stock¬
holders of record
Aug. 29, 1956 in the ratio of one shard
for each six shares
(common and/or preferred
stock)
held; rights to expire on Sept. 28. American
Telephone
'& Telegraph Co., the
parent, owns 90.70% of the out¬

Pro¬

Underwriter—Frontier

Nev.

Underwriter—None.

date of issuance.

each five

share.

—

redeem series A certificates
-—None.

•.

tion

Co., Inc., and Hornblower
/nilely postponed.
7 ;:

Sept. 14 29,400 shares of class B stock
(par $1), Price—
$10 per share. Proceeds
To pay trade accounts
arid
notes payable,
and for research and
development of
equipment and machinery.

stock

com¬

^Morton Portland Corp.,
Portland, Me.

July 23 (letter

Pacific

Finance Corp. (Calif.
)
;
April 10 filed $25,000,000 of
debentures due 1971* Pried
To be supplied
by amendment. Proceeds—For reduc¬

ceeds—For mining expenses.
Office—223 Phillips Petrol¬
eum
Bldg., Salt Lake City, Utah.

investors

of notification) 400,000 shares of
common
(par 50 cents).; Price—75 cents per share.
Proceeds
—For general corporate purposes. Business —
Manufac* tures
steel and aluminum
specialty products.: Underwriter—C. J.
Montague, Inc., 15 William Street, New
*
York 17, N. Y.
7"
v.,
'
li.f..Madison Gas & Electric Co.,
Madison,Wis* (10/1)
Sept.v 10. filed 68,334 shares of common stock
(par $16)
to be offered for
subscription by common stockholders
;of record Oct. 1,. 1956 on the, basis
of one new share for
*

exploration, adminis-

St.,

*■'v;;'■ 7 "7"' •'7' •" V-V.

and four

per

Philadelphia, Pa. Underwriter—Walnut Securities
Corps,
Philadelphia, Pa. 7y;;'*^7'";

Mississippi,C

shares.

Pa.

$250,000 of 6% 10-year
debentures due Sept.
20, 1966. Proceeds—Td
loan volume.
Office—2233 North Broad

increase

;

—

Macinar, Inc.

Price—$40 per unit. Proceeds
For pur¬
machinery and equipment. Office—New
Albany,
Miss. Underwriter—Lewis &
Co., Jackson, Miss.
Mormon Trail Mining
Corp., Salt Lake City, Utah
•Feb. 9 (letter of
notification) 3,000,000 shares of capital
;
stock (par one
cent). Price—10 cents

note

7 trative

;

each

renewable

chase of

in the face amount of
$90. Price
•—$ioo per unit. Proceeds—For construction and
opera¬
tion of a Polynesian
type restaurant and bar. Office—
"Suite 212, Professional
Bldg:, 425 Fremont St., Las Vegas,
Nev. Underwriter—None.
;/y\'" 7",77 V 7/ fC
V
Macimiento .Uranium Mining
Corp.
July 31 (ietier of notification) 1,000,000 shares of com- 7
;mon stock (par one cent). Price—20 cents
per share.
Proceeds—For current liabilities,
one

share). Proceeds
Address-^-Gibsonia, Alleg¬
Underwriter—None. '
,/ V ;
vr^.,

Oxford Loan
Co., Philadelphia,
(letter of notification)

Sept. 4

mine

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

Price—At par

-fr Luau, Inc.
}
/
-Aug. 24 (letter cf notification) $225,000 face amount
of
five-year 6% promissory notes and 2,500 shares of
com-;
mon st.ock
(par $10) to be offered in units of one share
and

*.'7

lead-zinc-copper-silver

Mission Appliance
Corp. of
April 23 (letter of

per

common

2,500,000 shares of common stock
(par
cent). Price—$1.50 per share.
Proceeds—To acquire
$2,400,000 the Chavin

Offering—Postponed/-

;

Ynrlt

located in South Central
Peru, and for general corporate
; purposes.
Underwriter - — Gearhdrt &
Oti$, Ibc*, NeW
York.

share). Proceeds—To repay bank loans. Un¬
derwriters—Blyth & Co., Inc., The First Boston Corp.
.and W. C. Langley &
Co., all of New York.

★ North Pittsburgh Telephone Co.
./V'"-;. '7,.
7
Sept, It (letter of
notification) 6,000 shares of tommorl
stock to be offered to
holders of common stock of
record
of Sept.
15, 1956 on the basis of one new share for

cents), of which 600,000 shares

moment¬

arily.";

"7.7*7/7777^ V'7: ~

.count of

purposes.

share.

working

—

Prudential Federal Uranium
Corp.
March 21 (letter of notification)
6.000.000 shares of com¬
mon stock
(par two cents).
Price—Five cents per share.

Proceeds—For mining expenses.
Securities, Inc., Denver 2, Colo.

Underwriter—Skyline

Puerto Rico Jai
Alai, Inc.
July 27 filed $1,100,000 of 12-year
gage bonds
due July
1, 1968. and

first

mort¬

220,000 shares of
stock (par $1).
Price—100% of principal amount
for debentures and
$1.75 per share for the stock. Procommon

Continued

page 40

The Commercial and

Texas;

Co., Houston,

„

Development Corp., Washington, D. C.
July 27 (letter of notification) 300,000 shares of common
stock (par 10 cents), of which 25,000 shares are to be
reserved for issuance upon exercise of options. PriceSi per share.
Proceeds—To purchase real property and
•

Pyramid

"Attorneys-in-Fact for the Subscrib¬
ers
at the State
Automobile Insurance Association."
Trice—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.

kacine Hydraulics & Machinery, Inc. (10/1-5)
15,000 shares of $1.20 cumulative convert¬
ible preferred stock, series A (par $20) and 35,000 shares
of common stock (par $1), of which 10,000 common
shares ate to be offered for the account of Malcolm
E. Erskine, President and Treasurer of the company.
•

Republic

v,v.

Cement Corp. (9/28)
965,000 shares of capital

stock. Price—$10
Proceeds—For construction of plant, working

April 20 filed

share.
capital and general

per

corporate purposes. Office—Prescott,
Underwriter—Vickers Brothers, New York.

Ariz.

^ Rexrug Mills, Inc., New York
Sept 7 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For equipment, buildings, working capital, etc. Office—
80 Wall St., New York 5, N. Y. Underwriter—None.
River Valley

Finance Co.

notification) 11,000 shares of class A
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,
(letter of

Aug. 29

stock and 518 shares

common

—

Iowa.

Engineering Corp., New York
Sept. 10 filed 19,059 shares of common stock (par

Ross

(J. O.)

John Waldron Corp. at the rate of one Ross share for each two
Waldron shares.
Offer will become effective upon de¬
posit of at least 90% of the outstanding common stock,
of which Ross presently owns 61,53%.
Underwriter—
None,

$30,000,000 of debentures due

Offering—Indefinitely postponed.

■A Storer
Fla.

notification) 25,000,000 shares of capi¬

Price—At par (10 cents per share). Proceeds
core drilling, including geological research and

assays;

for mining shaft; to

exercise purchase of

option agreement on additional properties; tor working
capital and other corporate purposes. Underwriter —
Indiana State Securities Corp. of Indianapolis, Ind., for

offering to residents of

Indiana.

(10/10)
sinking fund notes due Oct.
•1, 1971. Price—To be supplied by amendment. Proceeds
—To reduce bank loans. Underwriter—The First Bos¬
if Seaboard Finance Co.
Sept. 18 filed $15,000,000 of

(10/2)

Corp., New York.

„

Security Loan & Finance Co.

stock (par $1).

Sept. 14 filed 200,000 shares of common
Price — To be supplied by amendment/

Proceeds -—To

President of company.
Reynolds & Co., New York.
George B. Storer,

Underwriter—

Inc.

Sept. 10 (letter of notification) 15,780 shares of common
stock (par $1). Price—$19 per share. Proceeds—To sell¬
ing stockholders. Office—60 East Foothill Blvd., Upland,
Calif. Underwriters—Kidder, Peabody & Co., Inc., New
York, N. Y.^Wagenseller & Durst, Inc., Los Angeles 14,
Calif, and William K/Staats & Co., Los Angeles 14, Calif.

?if Templeton & Liddell

Fund, Inc., Englewood, N. J.

Sept. 18 filed 9.000 shares of common capital
—At market. Proceeds—For investment.
Texas Calgary

stock. Price

Co., Abilene, Texas

the basis of one new share for
each 12 shares held (with an oversubscription privilege);
;

record

Sept.

rights to expire in about 20 days after subscription war¬
rants are mailed.
Price—$18 per share. Proceeds—For
additions and improvements to property. Underwriter—
None.
...
/. V; v.; /.• ■'
*•/"■•
•

Southern

Aug.

■

Union Oils Ltd., Toronto, Canada

24 filed

Transcontinental Gas Pipe Line Corp.

privilege); rights to expire on Oct. 17. Price-j—To be
supplied by amendment. Proceeds — For construction
program.
Underwriters—White. Weld &
& Webster Securities Corp., both of New

Ulrich Manufacturing Co.,

N. M.\

filed

if Southwide Corp., Anniston, Ala.
Sept. 12 filed 450,635 shares of common stock

(par $1),

of which 211,681 shares are to be offered publicly 238,954

are

offered

exchange

for the

class

stock of Capital Fire & Casualty Co. and common stock
of

Allied

Investment

Corp.

Price—$2

per

share.

Pro¬

ceeds—For purchase of stock of Capital and Allied firms
for purchase of U. S. Government bonds. Under¬
writer—None, but a selling commission will be allowed
to dealers for sales effected by them. Elvin C. McCary,
of Anniston, Ala., is President.
and

Spig Master Miner Co.
' —
Aug. 22 (letter of notification) 36,000 shares of class A
stock and 15 shares of common stock. Price—At par ($1

Co. and Stone
York.

Roanoke, III.

of class A common stock (par
$1). Price—$6.50 per share. Proceeds—-To reduce bank
loans and for working capital. Business—Ear'thmoving
eauipment, etc. Underwriter—White & Co., St. Louis,

Aug. 20 filed 50,000 shares

1,000,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general
corporate purposes.
Underwriter—Southwestern Secu¬
rities Co., Dallas, Texas.
8

(.10/2)

10 filed 441,250 shares of common stock (par 50
cents) to be offered for subscription by common stock¬
holders of record Oct. 1, 1956 at the rate of one new
share for each 16 shares held (with an oversubscription

750,000 shares of capital stock (par $1).
Proceeds—To selling stock¬

Underwriter—None.

Southwestern Resources, Inc., Santa Fe,
June

Washington, D. C.

Sept.

Price—64 V2 cents per share.
holders.

Periodic

underlyingnshares of United Accumulative Fund.
United States Mining & Milling Corp.

July 16 (letter of notification) 300,000 shares of com¬
mon stock (par one cent). Price—$1.per "share, proceeds
—For exploration and drilling costs and for working
capital. Underwriter—N. R. Real & Co., Jersey City, N. J.

Aug. 24 (letter of notification) 27,272 shares of 70-cent3
cumulative preferred stock (par $5.) and 13,636 shares of
common stock (par 15 cents) to be offered in units con¬

sisting of one share of preferred and one-half share of
common.
Price—$11 per unit. Proceeds—For working
capital.

Mo.

Union Chemical &

Materials Corp.

May 25 filed 200,000 shares
Price—To be supplied
by

of common stock (par $10).
amendment.
Proceeds—To

selling stockholders. Office—Chicago, 111. Underwriters
—Allen & Co., Bache & Co. and Reynolds & Co., Inc.,
all of New York.

Offering—Postponed indefinitely.
*

•

United Aircraft Corp.

Aug.

28 filed

stock 4%
mon

—

stockholders of record

Sept. 17,

1956 on the basis

one

($100 per share). Proceeds—To repay bank loans,
equipment, working capital and general corporate
Underwriter
Harriman Ripley & Co. Inc.,
New York. *
, ,
u
^ ^
par

for

—

Gibraltar

Life

Dallas,

Bldg.,

Tex.

Corp., both of San Antonio, Tex.

-1

Universal Fuel & Chemical Corp.

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.
Venezuela

Diamond

Mines,

Inc.,

Miami,

Fla.

Aug. 31 filed 1,500,008 shares of common stock. Priee—
At par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬
lumbia Securities Co., Inc., of Florida, Miami, Fla.

Fund, Inc., Boston, Mass.

Venture Securities

Sept. 4 filed 200,000 shares of capital stock* (par $1).
Price—Initially at $25 per share. Proceeds—For invest¬
ment. Underwriter—Venture Securities Corp., 26 Fecit

Mass.

w"-i:

Aug. 24 (letter of notification 100,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For the
manufacture and sale of a hearing instrument designed
for the hard-of-hearing. Office—1353 Mesita Road, Colo¬
Springs, Colo.

Underwriter—Miller & Co., Tulsa,
(9/25)

Virginia Electric & Power Co.

...

refunding mortgage
bonds, series M, due Oct. 1, 1986. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co., American Securities Corp.
and Wertheim & Co. (jointly); Salomon Bros. & Hutzler;

Aug. 17 filed $20,000,000 of first and

Stone & Webster Securities Corp.;

White, Weld & Co.;

Eastman Dillon, SJnidh Securities & Co. Bids—Expected
to be received up to 11 a.m. (EDT) on Sept, 25 at 40

•

New York, N. Y.

(9/26 V

Walt Disney Productions, Burbank, Calif.

filed $7,500,000 of convertible subordinated
debentures due Sept. 1, 1976. Price^—To be supplied *by
amendment; Proceeds—$243,740 to redeem outstanding
4% debentures, series A, due 1960: balance for retire¬
ment of secured demand note.
Underwriter—Kidder,
Aug.

Peabody & Co., New York.

if Webb (H. S.) & Co.
Sept. 10 (letter of notification) $300,000 of 6% sink¬
ing fund subordinated debentures due* 1976.
Price—At
face amount. Proceeds—To redeem all of the outstand¬
ing cumulative preferred stock. Office—139 North Brand
Blvd., Glendale, Calif. Underwriter — Wagenseller &
Durst, Inc., Los Angeles/Calif.
Western States Natural Gas Co.

Aug, 24 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For development of oil and gas.
Office—Felt Bldg.,
Salt Lake City, Utah.
Underwriter—Us-Can Securities,
Inc., Jersey City, N, J.
Wheland Co., Chattanooga, Tenn.
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.
Proceeds—Together with proceeds from private sale of
$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured 4%% notes to a group of banks, will
be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.: and Equitable Securities Corp., Nash¬
ville, Tenn.
Offering — Temporarily postponed. Not
expected until sometime this Fall.
White

Sage Uranium Corp.
(letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share). Proceeds
—For mining expenses.
Office—547 East 21st South St
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
.
Feb. 13

^cunuea

318,098 shares of convertible preference

series, being offered for subscriotion by com¬

preference share for each 16 shares of common
stock held; rights to expire on Oct. 2, 1956. Price—At
of

Office

Underwriters—Muir Investment Co., and Texas National

Wall St.,

of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds—
For drilling for oil and gas expenses.
UnderwriterThomson Kernaghan & Co., Ltd., Toronto 1, OntM Canada.

June 29 (letter

—Federal Investment Co.j

the following additional'

1,500,000 United Income Fund shares; 500,000
Fund shares; and $25,000,000 of
Investment Plans without insurance and the

Accumulative

okia.

if Southern Union Gas Co., Dallas, Texas
'Sept. 14 filed 171,187 shares of common stock (par $1)
to be offered for subscription by common stockholders

(by amendment)

securities:
United

Vicon, Inc.

'July 17 (letter of notification) 200,000 shares of common
;// Thermoray Corp.
f
t
^
'
6tock (par $1), Price—$1.50 per share.; Proceeds—For
June 29 (letter of notification) 380,000 shares of com¬
expansion program. Office—323 So. State St., Salt Lake
mon stock (par 10 cents).
Price — 75 cents .per share.
City, Utah. Underwriter—Whitney & Co., also of Salt
Proceeds—For inventory, working capital, etc. Business
■'.Lake City.;
..
; :v;///;//:;///-// ,•/;/>-.■■/-/;;.v//////...
—Electrical heating. Office—26 Avenue B, Newark, N. J.
if Southern Bell Tel. & Tel. Co. (10/8) ■
Underwriter—Eaton & Co., Inc., New York.
Sept. 18 filed $60,000,000 of 27-year debentures due
Oct. 1, 1983. ! Proceeds — For repayment of advances to
Togor Publications, Inc., New York
its parent, American Telephone & Telegraph Co. Under¬
March 16 (letter of notification) 299,700 shares of com¬
writer—To be determined by competitive bidding. Prob¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
able bidders; Halsey, Stuart & Co. Inc.; Morgan Stanley
—For working capital and general corporate purposes.
& Co. Bids—Tentatively expected to be opened on Oct. 8.
Office—381 Fourth Ave., New York, N. Y. Underwriter

Sept. 14 filed

rado

Aug. 21 (letter of
—For

^ United Funds, Inc., KansasCity,Mo.

eral St., Boston,

Broadcasting Co., Miami Beach*

Suburban Gas Service,

Uranium, Inc., Denver, Colo.

tal stock.

ton

(J. P.) & Co., Inc., New

Samson

core

York
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
Stevens

June 28 filed

cents).

Universal Finance Corp.

convertible

preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
-and series iBpreferred, stock in the ratio of one share
of new preferred stock for each four shares of series A
or series B preferred stock and one share of new pre¬
ferred for each 10 shares of common stock held. Price—
At par ($10 per share). Proceeds—To repay a $1,400,000
note held by Equity General Corp., a subsidiary of
Equity Corp.; to liquidate existing bank loans and for
general corporate purposes.
Underwriter—None, but
Equity General'Corp. has agreed to purchase at par,
plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares (3.23%) of Sterling com¬
mon stock, plus $1,800,000 of its convertible debentures.

York.

$1) to

exchange for common stock of

be offered in

New York
of 5% cumulative

Sterling Precision Corp.,
July 9 filed 379,974 shares

by amendment. Proceeds—For
Underwriter—Loewi & Co., Inc., Mil¬

waukee/ Wis..
•

Underwriter—None.

supplied

Indianapolis, Ind.

shares of common stock (par $2.50)
be offered to agents and employees of Automobile

Underwriters, Inc.,

Sept. 10 filed

prjce—To

Statesman Insurance Co.,

July 3 filed 200,000

ington, D. C.

working capital.

capitaLOffice^uneau, Alaska. Underwriter—None.

ing

Underwriter-—Coombs & Co. of Wash¬

mortgage notes,

(par' 10'

Price—$1.25 per share. Proceeds—For develop¬
ment and exploration costs. 'Office—Los Angeles, Calif.
Underwriter—S. D. Fuller & Co., New York.
:
/

if Spruce Plywood Cooperative of Alaska, Inc.
Sept. 12 (letter of notification) 300 shares of 6% cumu¬
lative redeemable
preferred non-voting capital stock.
Price—At par ($100 per share).
Proceeds—For work¬

Rico.

(10/1-5) ;'vAv-

Aug. 29 filed 2,000,000 shares of common stock

Lake

and related activities.
Underwriters—Crerie &
and Dixon Bretscher Noonan, Inc.,

Springfield, 111.

United Cuban Oil, Inc.

machine parts.

construction of fronton

ceeds—For

Office—San Juan, Porto

Proceeds—For the manufacture and sale of
Office—623 Continental Bank Bldg., Salt
City, Utah. Underwriter—None.

share).

per

Continued from page

Financial Chronicle... Thursday, September 20,1956

(1216)

Wildcat Mountain

Aug.

13 filed

Corp., Boston, Mass.
$800,000 of 6% subordinated cumulative

debentures,due Dec. 1, 1976, and 6,000 shares of
stock
ture

(no par) to be offered in units of
and

three shares of stock.

Proceeds—For
ness—Mountain

construction
recreation

and

Price

—

common
$400 deben¬

$500

per

working capital

center.

unit

Busi¬

Underwriter—None-

offering to be made by officers and agents of

company'

Volume 184

Number 5570

Wilson & Co.,

Aug.

filed

bentures
ments

due

pansion

The Commercial and Financial Chronicle

To-redeem

—

bonds, to

repay

presently

outstanding

bank loans and for ex¬
packing firm.
Un¬

Business—Meat

program.

(1217)

Delaware Power & Light Co.

20-year sinking fund de¬
I'rice—To be supplied by amend¬

1976.

first mortgage

Inc.v;^.-

$20,000,000

Proceeds

derwriters—Smith, Barney & Co.: Glore Forgan & Co.
and Hallgarten & Co., all of New York City. Offering—
Indefinitely postponed.
Winter Park Telephone Co., Winter Park,

Aug. 24 ; (letter- of-notification) 3,000
cumulative preferred stock.
Price—At

Fla.
of

Aug. 13 it

reported

★ Jersey Central Power & Light Co.

plans to raise about
$8,000,000 through the sale of preferred stock. Proceeds
'

—For

was

construction

Underwriter—To

by comeptitive bidding.
Probable bidders':
White, Weld & Co. and Shields & Co. (jointly); Kidder,
Peabody & Co. and Harriman Ripley & Co., Inc. (joint¬
ly); Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Leh¬
man Brothers; W. C. Langley & Co. and Eastman
Dillon,

Hutzler

ed until

early in 1957.

Underwriter—Tucker, Anthony & Co., New York, N. Y.

Eternalite, Inc., New Orleans, La.

Probable

Aug.

was

announced

that

following

proposed

Oil Corp., American Petrofina,
Inc.* will offer; to stockholders the opportunity to subscribe to about 1,000,000 shares of "A" stock of American
Petrdfina.» Price~$il per share.

Weld &
Co.

Underwriters—White,
Co.; Blyth & Co., Inc.; and Hemphill, Noyes &

(9/26)

Lee Offshore

Offering—Expected in October.

announced company

was

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¬
rities Corp. and Kuhn, Loeb & Co.
(jointly); The First
Boston Corp.; Harriman Ripley &

Co., Inc.

•

Bank of the

Southwest

National

Association

Aug. 27 a proposal was approved under which the Bank
plans to offer to its stockholders the right to subscribe for
75,000 additional shares of capital stock (par $20) on
the basis of three

new

held.

per share. Proceeds—To increase

.Price—$40

tal and surplus.

Boulder

shares for each 20 shares

presently
capi¬

Office—:HoUston, Texas.

Acceptance Corp.,

Boulder,

Colo.

was announced company plans to offer
and
sell 3,000,000 shares of its common stock. Price—At
par

share). .Proceeds—To construct hotel; set up in¬
stalment loan company; and for
working capital and
per

general corporate purposes.

tticnj Co.* Boulder, Colo.

Underwriter—Allen InvestStock to be sold in Colorado.

Burndy Engineering Co., Inc. (Coon.)

Aug. 27 it
t

was

reported company plans to issue and sell

October?,some

common

stock.

Underwriter

■—

March 22 it

(11/27)

was announced
company plans to issue and
$15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined
by competitive bidding. Prob¬
able biddersr
Halsey, "Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & *Cd. Inc.
(jointly) ; W. C. Larigley
& Co. and The First Boston
Corp. (jointly); Equitable
Securities Corp.; Blyth & Co., Inc.;
Kidder, Peabody &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly)
,

sell

Bids—Scheduled for Nov. 27.
•

Carolina

Fower

and

indebtedness from $35,000,000 to $60,000,000 and to in¬
crease
the
authorized common stock from 5,000,000

(10/23)

Sept. 10 it was announced company plans to issue and
sell 170,000 shares of common stock.
Proceeds—For con¬
struction program. Underwriter—To be
determined by
competitive bidding. Probable bidders: Blyth &
Co., Inc.,
Merrill Lynch,
Pierce, Fenner & Beane and Stone &
Webster Securities Corp.
(jointly); Glore, Forgan & Co.;
The First Boston Corp.; Lehman
Brothers, Bear, Stearns
&
Go.
and
Eastman
Dillon, Union Securities & Co.
(jointly). Bids — Expected to be received on Oct. 23.

Central

Consolidated

funds

for

expansion.
Office—
Underwriter
Loewi & Co.,
—

New

York,

Inc.

(10/23)

Aug. 28 the trustees authorized a 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 determirfed by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp. Bids—
Expected to be received on Oct. 23.

Underwriter

(10/10)

(EDT) on Oct. 10
at the Department of Justice, Office of Alien
Property,

Lucky Stores, Inc.
Aug. 28 the directors of

Eastman,

—

offer

Merrill

Lynch, Pierce, Fenner & Beane acted
clearing agent in previous offering to stockholders.

a.m.

Foremost's

Foremost

stockholders

Merrill

Petroleums

Sept. 6 it

Ltd.
(Canada)
reported company plans to issue and sell

was

some
debentures.
Underwriter—White, Weld & Co.,
New York.
' ;
i '
■r
''*>ryy-:
i
:.vy
,-s
reported company plans to issue and sell •v
300,000 shares of common stock.
;
*
Price—Expected at / • Metropolitan Edison Co..$10 per share. Underwriter—Van Alstyne, Noel & Co,,
July 2 it was reported that company is considering the
NeW York. Offering—Probably in October.
sale of $10,000,000 first mortgage, bonds due 1986. Under¬
?

Hartfield Stores, Inc.

„

Aug. 27 it

was

r,*i

■

•

Haskelite Manufacturing Co.

t.'

New York.

writer—To be determined by competitive bidding. Probabfe' biddersr

July 16 it was reported company may be considering sale
of about $1,000,000 to $1,500,000 bonds or debentures.
Underwriter—May be G. H. Walker & Co., St. Louis and

Halsey, Stuart & Co. Inc.; White, Weld &
Kidder, Peabody & Co. and Drexcl
First Boston Corp. Bids—Not ex¬
pected to be received until December. Company presently

Co.: Blyth & Co., Inc.;
/ & Co.
(jointly); The

plans to issue and sell $22,000,000 of bonds in

16 months.

iii Hawaiian Electric Co., Ltd.
common
mon

announced company plans to offer to its

was

stockholders

stock

(par $20).

77,000

additional

Proceeds

shares of

com¬

For construction

pro¬

Offering—Expected in

Underwriter—None.

gram.

near

—

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
40-year debentures later this year. Prooeeds—For con¬
program.
Underwriter—To be determined by

struction

luture.

Hawaiian

Co.

Pineapple Co., Ltd.

Aug. 21 it

was announced company plans some new fi¬
nancing.
Proceeds — To pay long-term debt and for
working capital. Underwriter—None, if stock is offered

the next

Sept. 14 it

stockholders.

Probable bidders: Halsey, Stuart &

Inc.; Morgan Stanley & Co.

ir Missouri
Bids

Pacific

expected

RR.

(9/20)

received

by the company on
Sept. 20 for the purchase from it of $2,700,000 equipment
trust certificates, series F, due annually Aug. 15, 1957
are

Hawaiian

15%

Telephone Co.

Co.

announced that company plans to acquire
participation with American Telephone & Tele¬
was

1971, inclusive. Probable biddors:
Inc.; Salomon Bros. & Hutzler.,

Mobile

graph Co. in a proposed $36,700,000 California-to-Hawaii
cable and, if approved by the directors on Aug. 16, will
be probably be financed by a debenture issue. Hawaiian

common

Telephone

stock

500,000,

Co.'s

investment

will

approximately $5,-

Underwriter—Probably Kidder, Peabody & Co.,

New York.

July 25 it
vote

Sept. 7 it

& Television

increasing the authorized

common

stock

from

order to provide
options (to officers and employees), and for future fi¬
nancing. Underwriters—Weill, Blauner & Co., New York,
and Hallowell, Sulzberger & 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
Corp.

and

Lazard

Freres

Co.

has

been

ap¬

for

—

Stuart &
;

For

Corp.

about Nov.

additional

30,000

held

the basis of

(with

'
Bank

'•

one

1, 1956 the right

shares
new

common

share for each

oversubscription

construction

\ ■'

National

Aug. 10 will

1,000,000 shares, in

stockholders

None.
on

was

Service

Halsey,
,

(11/1)
announced company plans to offer to its

(par $5)

Corp.

announced stockholders

was

Gas

Proceeds

Herold Radio

Boston

Edison Co.

share for each 15 shares

held.

400,000 shares to

Wisconsin Motor Transport Co.
July 9 it was reported early registration is
expected
of 34,600 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

Milwaukee, Wis.

10,000,000 shares.
Co., New York.

July 30 it

Central Illinois Public Service Co.

preferred to provide
Wisconsin Rapids, Wis.

received

for

Co., Inc., Charlotte, N. C. Registra¬

tion—Expected Sept. 25.

Dairies, Inc., voted
the right to subscribe
630,000 shares of common stock of Lucky Stores, Inc.
General Public Utilities Corp.
?
at the rate of eight Lucky shares for each 100 shares of
Foremost stock held
(with an oversubscription privi¬
April 2, A. F. Tegen, President, said that the company
lege). Price — $12 per share. Proceeds — To Foremost
plans this year to issue and sell $28,500,000 of new bonds
/ Dairies, Inc. Underwriter—Allen &
and $14,000,000 of new preferred stock. Proceeds—To
Co., New York.
>
'
repay bank loans, etc., and for construction program.
May Department Stores Co.
;
July 19 it was announced that this company may under¬
'General Public Utilities Corp.
take financing for one or more real estate
companies.
Sept. 12, A. F. Tegen, President, announced that the
Proceeds
For development of branch stores and re¬
stockholders
are
going to be offered approximately
gional shopping centers.
Underwriters—Goldman, Sachs
647,000 additional shares of common stock (par $5) early
& Co. and Lehman Brothers, New York.
-■//
in 1957 on the basis of one new
to

Dillon &

Light Co.

Registration—Planned for Oct.

Stores, Inc.

Aug. 28 stockholders voted to increase the authorized

Lynch, Pierce, Fenner & Beane, New York;

R. S. Dickson &

Lieberknecht, Inc., Laureldale, Pa.
Bids will

competitive bidding.

(10/16)
Sept. 12 it was announced the directors have authorized
the officers of the
company to take necessary action
looking toward the sale to the public of an additional
500,000 shares of common stock (no par). Underwriters
-—Merrill

Drilling Co.y Tulsa, Okia.

was

664, 101 Imdiana Avenue, N. W., Washington 25,
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
and sale of knitting machines, etc. Bidders—May include
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly).

Inc., New York.

Van

Alstyne, Noel & Co., New York.
Carolina Power & Light Co.

Halsey, Stuart & Co. Inc.; The First
Inc. (jointly); Equitable

—

July 16 it
($6

increasing

50,000 shares of common
Underwriter—Foster-Mann,

proposal

Room

plans to issue and sell

company

to residents of New York State
stock. Price—$2 per share.

Food Fair

plans to issue and

reported

reported company plans registration in
of $2,500,000 of convertible-class A stock.
Underwriter—Rauscher, Pierce & Co., Dallas, Texas*.

;

Appalachian Electric Power Co.
May 31 it

Robinson-Humphrey Co., Inc., Atlanta, Ga.;

was

bidders:

Aug. 20 it
/September

...

Flair Records Co.

Aug. 13 it

approved

and

Merrill Lynch, Pierce, Fenner & Beane, New
York; and
Courts & Co., Atlanta, Ga.

merger with Panhandle

Beane

(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
Eastman Dillon, Union Securities & Co.
(jointly);
Lehman Brothers and Bear, Stearns & Co.
(jointly).
Amount and timing has not yet been determined (prob¬
ably not until first half of 1957).VJ.'-V

Vickers Brothers, New

★ First National Bank of Atlanta, Ga.

—

Securities Corp.; White, Weld & Co. arid Shields & Co.

Sept. 12 it was announced that stockholders will vote
Sept. 25 on approving an offering to stockholders of
200,000 additional shares of capital stock (par $10) on a
2-for-7 basis; rights to expire on Oct. 15. Price—$35
per
writers

American Petrofina,' Inc.

Fenner

City Power & Light Co.

stockholders

Pierce,

Boston Corp. and Blyth & Co.,

share. Proceeds—To increase capital and surplus. Under¬

Lynch,

bonded indebtedness of the company by $20,000,000. Un¬
derwriter — To be determined by competitive
bidding.

May 28 it was reported company plans to issue and sell
about 200,000 shares of class A stock. Price — Around

•—

Merrill

Kansas

April

(

$4.£^} per share. Underwriter

ZieglerCoal&CokeCo., (9/21)
Sept. 7 (letter of-notification) 12,500 shares of common
stock (par $10). Price—$18 per share. Proceeds — For
working capital. Office—231 So. La Salle St., Chicago, 111.

and

(jointly).

Union Securities & Co. (jointly); Blyth &
Co., Inc., and
5% g The First Boston Corp( jointly). Offering—Not expect¬

par ($100 per
Proceeds—For. improvements and additions to
property. Office—128 East New England Ave., Winter
Park, Fla. Underwriter—Security Associates, Inc., Win¬
ter Park, Fla.

sell

de¬

termined

share).

Sept. 12, it was announced company plans to issue and
$8,000,000 of first mortgage bonds. Underwriter—
To
be
determined by competitive bidding.
Probable
bidefefs:' Hblsfey', Stuart'Co. Inc;; Kidder,
Peabody &
Co.; The First Boston Corp.; White, Weld & Co.; Eastman Dillon, Union Securities & Co., Salomon Bros. &

company

program.

privilege).
Underwriters —

•"v

Detroit

(11/1)

it was announced stockholders will vote Oct.
approving proposed sale of 263,400 additional
shares of capital stock to stockholders on the basis of
one new 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¬
Sept.
15

gan

Stanley & Co., New York.

* National Newark & Essex Banking Co. of
Newark
(N. J.)
(10/4)

Bank plans to offer to its
right to subscribe
55,000 additional shares of capital stock (par $25) on

Sept.

announced

pointed to study the possibility of a loan to be issued
the American market.
The time, amount and terms

stockholders of record Oct. 5, 1956, the

will

depend

market conditions.

Proceeds

*—

loaned to firms in the Community for expansion of

mines, coking plants,

power

plants and iron

ore

coal

mines.

the

basis

Hudson Pulp & Paper Corp.
25 it was reported company

some

public

financing.

Proceeds—For

in the Fall do
expansion. Un¬

derwriter—Lee Higginson Corp., New York.

one

new

for

each

six

in capitalization.

ceeds—To
may

shares held.
proposed in¬
Price—To be named later. Pro¬
increase capital and surplus.
Underwriter-

Stockholders will vote Oct. 3 on approving
crease

June

was

Merrill

Lynch, Pierce, Fenner & Beane, New York.
Continued

page

;

The Commercial and Financial Chronicle...

(1218)

Continued

jrom

each 5% preferred share. The offer

^Pacific Northwest Pipeline Corp.

page

March

National Steel Corp.

estimated
to start Jn
ind to be completed in mid-1959 will

the company announced that it is
that total construction e^p^nditpres planned,
the current year

lon, Union Securities & Co., New York. Exchange
Bank, New York.
v

minimum

The First Boston Corp.
f

Co. of America

Natural Gas Pipe Line

reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bidFeb. 20 it

was

New England Electric
3

was

Aug. 13 it

company

merge its

plans to

vestors

subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
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 bidding.
Probable bidders: Halsey. Stuart & Co. Inc.: Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Eastman Dillon, Union
Securities & Co. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane,

$10,000,000
4

1956.

first

competi¬

tive

bidding. Probable bidders: Halsev, Stuart
Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East¬
man Dillon, Union Securities & Co. and Wood, Struthers
& Co. (jointly); Lehman Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and White,
Weld & Co. (jointly).

12 it

was

announced

company

Sept. 10 it

the

•

general public. Proceeds—To pay,
power project to cost an esti-

Irving

*V "V v i '•

•

Rosenthal,

President,

N. J.

Sept. 10 it

holders

that

announced

April

Cuba Oil

& Metals Corp.

(Del.)

that

•

Electric

Co.

Jan. 30 it

Co. and White, Weld & Co. (jointly); Equitable Securi¬

Harriman Ripley &

July 2 it

was

V Pittsburgh Rys.

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).
be received up to 11 a.m.

(EDT)

Ohio Power Co.

July 2 it

Bids—Expected to
Oct. 30.

/
>

(10/30)

Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Eastman
Dillon,

Union Securities

Co.

and

Salomon

Bros.

Hutzler

(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)
on Oct. 30.
'
Oklahoma Corp., Oklahoma
City, Okla.
July 26 it was announced company has been authorized

the Oklahoma Securities Commission to issue and
*?1 /ft!; J5S?i?Lpf ?kl.ahoma $20,000,000 of its capital
/v0'000'000 Within organization and $10,000,000
it

uii

Publicly). Proceeds—To organize
sidiaries.

Business—A

holding

acquire seven sub¬
company.
Underwriter
or

Oct. 30.

Proceeds—For expansion

Gas Co.

of California

reported company may in the Fall offer

Electric Generating Co.

the

by competitive

bidding.

Probable

bidders:

Stanley & Co.
Pocahontas Fuel Co., Inc.
* Southwestern Public Service Co.
July 27 it was announced that following 100% stock dis¬
tribution to stockholders of record Aug. 28,1956, a public
Aug. 7 it. was announced company plans to issue and
sell in February or March, 1957, $5,000,000 of first mort¬
offering of approximately 200,000 shares of capital stock,
consisting of shares held in the treasury and by certain ar gage bonds and $5,OOh.OOO additional common stock first
to stockholders on a l-for-20 basis. Proceeds—For con¬
Stockholders. Underwriters—Morgan Stanley & Co. and
F. S. Smithers & Co., both of New York. Offering—Exstruction program, i Underwriter—Dillon, Read & Co.
New York.
pected in September.
,

Public Service Co. of

July 30 it

Underwood Corp.

Indiana, Inc. (IO/$G) ' V

Public

Service

Electric &

Gas

Co.

(11/14)

Sept. 18 the directors proposed the issuance and sale of
s

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

considering

$5,Q00,000 subordinated convertible deben¬
tures due 1971. Proceeds—For working capital and used
as

issue

required for research and engineering, modernization
plant facilities, development of new products and gen¬

eral expansion of operations in order to promote in¬
sales., Underwriter

creased

—

Lehman Brothers,

New

York.
v

United States Rubber Co.

29, H.

issuance

$50,000,000 first and refunding mortgage bonds due Nov.
1,1986. Proceeds—To help finance construction program.

Boston Corp.; Kuhn, Loeb &

Sept. 10 it was announced the directors are

June
•

(10/10)

reported company may issue and Sell about
$30,000,000 first mortgage bonds. Proceeds — To retire
was

Humphreys, Jr., Chairman, stated

convertible

debentures

one

that

several

possible methods the company has been considering fbr
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added that, if
convertible debentures are issued, they will be offered

Underwriter—Kuhn,

rata to common stockholders.
& Co., New Yoik.

pro

Loeb

Co., and Lehman Brothers

Morgan

Stanley & Co. and Drexel & Co.
Bids—Tentatively scheduled to be received
to 11 a.m. (EST) on Nov. 14.

University Life Insurance Co.y Norman, Okla.
June

21, Wayne Wallace, President, announced company
near future to offer to its 200 stockholders 500,-

plans in
Public Service

Electric

Gas

additional

000

Co.

common

voting

stock

rate

Sept.

18 it

was

plans to issue and

company

sell
1,000,000 additional shares of common stock (no
par) early in December. Proceeds—To repay bank loans
and

for

new

construction.

•

large expansion, the company

says,

can

Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Blair & Co. Incorporated. Bids — Expected on or

about Oct. 4.

Corp.

Louis-San

Sept.

Francisco

offered

company

Washington Gas Light Co.

Ry.

not

June

exceeding $61,600,000

50-year income 5% debentures, series A, due Jan. 1, 2006,
154,000 shares of common stock (no par), and cash
dend

which

has

unpaid" portion
been

declared payable in

1956, in

tures,

stock, series A,
one-quarter

value 5%

the basis of $100

common

stock

announced

common

Underwriter

—

stock and temporary bank borrowings.
The First Boston Corp., New

York; and
/

ex¬
pre¬

unpaid

dividends of $2.50 per preferred share in
exchange for

it Western Maryland Ry.
Bids

of deben¬

and

company proposes to finance
construction of pipeline in Virginia to
$3,380,000 from funds generated by operations,

was

new

Johnston; Lemon & Co., Washington, D. C.
^

ferred

par

cost about

sale of
;

of the preferred divi¬

change for its 616,000 shares of $100

proposed

of
'■

equivalent to the

Sept. 24 for the purchase from it of $3,600,000 equip¬
trust certificates, which will mature in 15 equal
Probable bidders: Halsey, Stuart -&

annual Instalments.

financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive
bidding, may
include Halsey, Stuart & Co. Inc.; The First Boston
St.

(9/24)*'-

Virginian Ry.

ment

$87,000,000, including $20,000,000 budgeted for

This

f Bids will be received by this company up to noon (EDT)

Feb. 15 the company announced that it estimates that its
construction
program
for the years
1956-1959 will
1956.

Underwriter—None.

Underwriters—Morgan Stan¬

ley & Co., Drexel & Co., and Glore, Forgan & Co.

amount to

than 2,500

shares to each stockholder. Rights
will expire on Aug. 1.
Unsubscribed stock will be of¬
fered to residents of Oklahoma only. Price—$2 per share.
of not

announced

reported company proposes to issue and
shares of cumulative preferred stock
(par
$100). Underwriter—To be determined by competitive
bidding.
Probable bidders: The First Boston

'•:.^

Co.

Puget Sound Power & Light Co.

was

"■ >

Halsey, Stuart & Co* Inc.; Eastman, Dillon, Union Secu¬
May 4 it was announced that Standard Gas & Electric rities & Co.; Equitable Securities Corp. and Drexel & Go.
Co. will offer to its stockholders rights to subscribe for / (jointly); Lehman Brothers; Harriman Ripley & Co*
Inc. and Goldman, Sachs & Co. (jointly); Blyth & Co.,
540,651.75 shares of Pittsburgh Bys. Co.. Price—About $6
Inc.
and
Kidder, Peabody & Co. (jointly); Morgan
per share.

(jointly);
(jointlv).

reported company plans to issue and sell

■

jbeane.'

determined

•'

$28,000,000 of first mortgage bonds due 1986.

operate a $150,000,000 steam electric generating plant
Coosa River in Alabama.
Underwriter—May be

ana
on

(10/30)

:•:

May 18, it was announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co., plans to issue debt securi¬
ties. Proceeds—Together with other funds, to construct

through issuance of debentures and treasury funds in
bank loans and for construction program. Underwriter—
latter part of year. Underwriter—Probably Blyth & Co.,
Inc. '
/ To be determined by competitive bidding. Probable bid¬
■>; ;V
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
Offshore Gathering Corn.. Houston*, Texas
V
First Boston Corp.; Harriman Ripley & Co. Inc.; Glore,
Nov. 18, 1955, David C. Bintliff, Pres., announced comForgan. & Co.; Kuhn, Loeb & : Co., Salomon Bros; &
.pany has filed an application with the Federal Power
Hutzler and Eastman Dillon, Union Securities & Co. ;;;
Commission for a certificate of necessity to build a
(jointly). Bids—Expected to be received on or about
364-mile submarine gas pipeline off-shore the coast of
Oct. 16. '
/,
■

Ohio Power Co.

'•

$100 of debentures for each n.ne
Stockholders are scheduled to vote

Counties

was

Southern

$6,000,000 of first mortgage bonds. Underwriter—
determined by competitive bidding.
Probable
bidder^: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &

(costing about $40,000,000)

New York.

enner

sell

plans to issue and

gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been
determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
common stock). Underwriter—Salomon Bros. &
Hutzler,

-V

'$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

Sept; 12 it was announced company plans to issue and

ties Corp.; The First Boston Corp.;
Co. Inc.; Kuhn, Loeb & Co.

Louisiana from the Sabine River to the Gulf Coast of
the State of Mississippi. It is estimated that this

financing

Southern
1

reported company plans, to finance its
program

'•"vi-

•

and general corporate purposes. Underwriter
—Smith, Barney & Co. and Merrill JLyneh, Pierce, Fen¬
ner & Beane, both of New York.
+

Northern Natural Gas Co*
was

basis

the

Walter E. Seibert, President, announced

J it Pennsylvania

Northeast Airlines, Inc.
Sept. 1 it was reported that part of the cost of new
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.

construction

;•■■■■

„

announced that company is considering

was

shares of stock held.

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.
/

1956

:r f ■.
,

/selling $165,000,000 of convertible subordinated deben¬
tures to be offered for subscription by common stoi'

•

't. *

Sinclair Oil Corp.

new

company will soon file a registration statement with the
SEC preparatory to an equity offering planned to take

i July 19 it

„

reported that the company plans long¬

was

program

$5,000,000 of first mortgage bonds. Underwriter—
determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man Brothers and
Salomon Bros. & Hutzler (jointly);
Eastman Dillon. Union Securities & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane.

■■

the two and then sell stock to public.

Pan

sell
To

21,

merge

it New Jersey Power & Light Co.
Sept.

well

part, for cost of

Aug.

plans to issue and sell
bonds during October

mortgage

company plans to purchase another amusement park and

announced company

Underwriters—To be determined by

it Seiberling Rubber Co.

reported company plans to sell about $32,-

Palisades Amusement Park, Fort Lee,

New England Power Co.
was

was

f mated $217,400,000.

Kidder, Peabody & Co; and White, Weld & Co. (jointly).

"Jan. 3 it

Agent
:-ti

000,000 of common stock to the organizing companies and -term debt financing and/or issuance oi auditional com¬
mon stock.- Proceeds—To redeem preferred stocks
that arrangements are expected to be made to borrow
and
for expansion program, etc.
Underwriter — Probably
up to $60,000,000 on a revolving bank loan which will be
Blair & Co. Incorporated, New York.
reduced through the sale of bonds to institutional in¬
,
*
'
•

System

announced

it Seaboard Air Line RR. (10/2)
in April of 1955.
Price—$10 per share. Proceeds—To¬
Bids will be received by the company up to noon (EDT)
gether with funds from private sale of $35,000,000 addion Oct. 2, at the office of Willkie Owen Farr Gallagher
tional first mortgage bonds, and $10,000,000 of 5.6%
interim notes and borrowings from banks, will be used / & Walton, .15 Broad St., New York 5, N. Y., for the pur¬
chase from it of $4,650,000 equipment trust certificates,
to construction program. Underwriters—White, Weld &
series Q, to be dated Oct. 1, 1956 and to mature in i5
Co.; Kinder, Peabody & Co.; The Dominion Securities
equal annual instalments.
Probable bidders: Halsey,
Corp.; and Eastman Dillon, Union Securities & Co.
.'Stuart & Co. Inc.; Salomon Bros. & Hutzler.
•
\
Registration—Expected soon.
|
•Pacific Northwest Power Co.

ding, the following may bid: Halsey, Stuart & Co. Inc.;
,White, Weld & Co.; Lehman Brothers and Eastman
Dillon, Union Securities & Co. (jointly).

Jan.

—The Chase Manhattan

►

$200,000,000. Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley &'Co. Inc.; and
to

amount

will expire on Dec. 31,
— j&aStniiui ,'Lai-

Dealer-Manager

1956, unless extended.

President, announced that
about 280,000 shares of common stock (par $1) are to be
sold
in connection with subscription contracts which
;»were entered into at the time of the original financing
Williams,

March 12

Thursday, September 2D, 1956

(9/25)

received by this company on
Sept. 25 for the purchase from it of about $4,800,000
equipment trust certificates. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
are

expected

Volume

184

Continued

Number 5570

from

.-The Commercial

and^nancial Chronicle

page

everything

aspiration to

cash basis.

ity

lar

merchandise

Where

appearance.

simi-^will

available

terms, the-market^ is
substantially enlarged; and where
terms

nature
may

not

are

the

influence

mendously

the

themselves

consumer

think

but I
desire

important

we
tre-

Chemist Cites Method oi

ings

her choice of the store where she

buys the selected merchandise.

are

better the chances

tne

span,

that they will lead to

sumpuon tor tftut individual
sumer and his family, over hisna¬
tire earnings span, ine sooner

Historical High Consumption Rate

deiire

we,

has

"the

been

pointed

dominant

about

fact

that in the jewelry field, too.
Credit makes it " easier to make
sale has

one

Allegheny Ludlum

day

its

extraordinary

high
its

Now,

is offering

than it could have been
sold if he had to save up and pay
cash. You may be. inclined to say:
"So what? He would buy it soonel- OT later anyway.
It all evens

sooner

world."
statement

refers

t iiriium

rapidly

throughout

"jii

correctness

the

this

historical period

tui-v

advanced

been

for'

of its

$16,377,000

will

entitled

true

sub-

scribe

for $100 principal amount
of debentures for each 23 shares
bf common stock held, with warrants expiring at 3:30 p.m. (EDT)
on Oct. 3,1956. The subscription

back by the development of a new

electrical
was

'insulating

material, it
indicated Sept. 17 at the 130th

Chemical Societv. at Atlantic Citv..
Society, at Atlantic City, .

A silicone rubber capable ; of
withstanding .temperatures from

chemicals

calendar

*™!3K

The

years.

bl ad,d/dJ° gf""
be

suffi-

resources,

what we have. We don't like to to complete all presently

rangtog

their position and to increase their

vx*c a^uit-

consumption, must have been a
particularly important factor
Many of the early settlers had
rebelled from conditions in Eu-

w
e v
of our posses*
0M#
That is why instalment selling
adds an important and permanent

increment to our consuming powor. The instalment sales you make

robe, both economic and oolitical.

willing

take

per-

today actuaily increase the magnitude, of tomorrow's consuming
politically' P°wer< For by making instalment
sales today, you put in these cusTt
ic
rhoraptoricti^
tomers' possession , items they
amnno
hnmThPinS
would not otherwise have been
•mTnvp thPi? PiSnnmiV?
able to own- And to the extent to
chances

and

this country they

risks

and

rewarded

were

both economically and
"or doing so
rnmmnn

which their nmbitioitis geared;t6

if nn^ihlP

if?n

this

hKFhrtora

tmnd

for

nmver

for
..

4R,

The

aspiration to in.

consumption

has not been
nebulous hope, but withgrasp of all human beings

rease

erely

the

this country.
This

has

all

bearing on the
ositive' value of instalment sella

Instalment selling, by creatan
opportunity for the av-

ng.

*ng

rage

consumer

make

de-

this

field

dhe

:
Group
Sells Kay Jewelry

•

ncducu
headed

group

Co.

late

by
uy

last

Lazard

ju««u-u

week

of-

fered PUbUcly 150,000 shares of
common stock of Kay Jewelry
Stores, Inc., one of the largest
chains of retail credit jewelry
stores in the country. ThJe stock

au-

the

Better Electronic Insulation

electrical

steel

and

electrical

al-

Marengo,

111.;

and

Los

Angeles,

fact,

have

begun

*n these terms..;

at the company's option at prices
ranging from 104%, if redeemed

jet

speed

planes

rockets is limited by

and

the biSb

civics mgu

tcui^fcttuict,

such

any

the

sale

wholly-owned subsidiary,
Upon completion of the financ-

and

loans,

the

reduction

outstanding

bank

capitalization

wjn comprise

a $6,000,000 (maximum) credit note; $923,012 notes
due Dec.
1,
1957; and« 558,100

shares of capital stock. !fT"
v Kay Jewelry Stores, Inc.' operates 82 retail credit jewelry stores,
.51 under the name "Kay," 15 under the name "Finlay Straus," 10
under the name "Kay-Franc,"
four under the

under the

name

Kay
in

opened

"Ross,"

one

"Leeds" and

one

name

under the

higher than those now permitted, first

"Wittman."

jewelry

The

store

was

1916.

Net sales during the fiscal year
ended June 30, 1956, totaled $27?*

374,609 compared with $23,121,067.
in the preceding fiscal year. Net

*actly as the larger, heavier unit, earnings in

constructed

year.

•

from

jewelry to reduce bank loans in-

around ing

■.

closed.

proceeds

^h^r^T^wYll he'meT h^Kav

the

temperatures developed in elec-

This reduction in size and weight
in the .12 month period beginning is very important in airborne
Oct. 1, 1956, to 100% if redeemed equipment. .
*
in the year prior to maturity. The
"The construction materials of
sinking fund, which begins opera- the power transformers designed
tion in 1966, is calculated to retire to operate aj high temperature
75% Gf the issue at 100% prior are silicone-modified wire enamel,;
to
maturity,
but the
company asbestos layer insulation, a silicon
may, at its option, increase sink- steel
core, and a stainless steel
ing fund payments by up to $800,- mounting
base.
A transformer
000

books

Net

The

1 have spent quite a bit of time
on this point both because it is
important and because it is one
t}?at 1 believe most of us miss.
This conception of instalment
merchandising as making a permanent and appreciable contribu.
tion f° ,tbe size of our consuming
P°wer is not very frequently discusaed. very few stores, very few
people, very few econ-

country is that its efforts

ewarded.

Lazard Freres

Freres

improve its position have been

nation

Slock al $21 a Share

loys, and other special types of^the equipment .^ecause of air
steel and alloys, and is one of the friction. This_ heat destroys ordileading producers of such prod- nary insulation.
Power transucts. Stainless steel and electrical formers ' in
particular,
which
steel sales account for approxir> generate quite a lot of heat in
iridteiy 50% ' and 30%t respec- normal4, operation, become extively, of total sales volume. The tremely hot during operation at
company has about 15,700 em- high speeds, and the insulation
ployees and has plants at Brack- frequently fails.
enridge and
West
Leechburg,
Organosilicon compounds make
Leechburg, Pa.; Dunkirk, Water- possible the construction of power
vliet and Tonawanda, N. Y.; Wall-;transformers that will operate
ingford, Conn.; Ferndale, Mich.; satisfactorily at temperatures

fha

developments

the relative importance and value Calif.
declared Mr. Parr, who continued:
nited States
thev become d£- °f their P^ffssmns, their earning
The debentures are convertible ' ^'Furthermore, these transformouraged and'their efforts sub- P°w®r wdl b® biSber, and tomor- into common stock at any time ers
can
be made about 50%
ide.
One
of
the
characteristic!!^W? be Just that Prior to maturity at $55 per share.: 'Smaller and hence lighter m
hings about the consuming public
"
Digger.
The debentures are redeemable weight and yet still function exPrtt

future

upon just such developments as this.Without continued

were

f,,i.

«oUr

™J

speed

sonal

vr.,,.

insulating properties,
said
Mr.
Parr, who is a chemist in the air

Oorr

-'hey

poSfth;

pendent

TnownFis organosSFcon

S&i33^ f,LtlldT^S

sLtie~ higher consuming power. As in- eraL funds and should
whv
fldt dividuals» We don't like to lose cient, with other cash

for

stoFld hlw bten

holders

wants out of the future in terms next three

thisTatS

auu.
organo-

WJL

^a^a-sass; --——•
to subscribe

sential appliances, nice furniture derwrite the offering.

origin of the country, and has in-

111CIU

has made
operation of electronic equipment
at-higher temperatures for longer
periods of time with greater re-

and attractive jewelry, has a-tre- ■ The company will use $10,750,- Fahrenheit- (250 degrees._xenti- js priced at ?2l a share. The ofmendous impact on that custom- 000 of the proceeds to prepay cer®_
In Iwr^c fering, which represented the first
er s psychology, on how he thinks tain outstanding obligations which temperature
was
320
degrees public financing by the company,
about the future, on what; he would otherwise come due in the Fahrenheit.
was
quickly oversubscribed and

It has been high from the date of
creased

ucvuu

w°.uld 1Sveito degree with you. price is 100%. A group headed
Be>ng able to own a house, and a by^e first Boston Corporation
car, and a television set, and es- and Smith, Barney & Co. will un-

sumption in the United States, not
only currently but historically.
The striking fact about consumption in the United States is that

entire

'he long run." But there I

:out

con.

development

pushed formers

with *°<>d Metrical

high by contemporary European
standards; yet it has increased
rapidly at a relatively high rate
compared with other places in the
This

may

been
to have been

seems

"The

minus 85 degrees t0 Plus 500 de" United States cannot hope a to
tatovgreeS Fahrenheit was described maintain the number one position

allpphpnv

history is that from the early
of the Union it

transformers.

nerformanp^of i^nlan^'and silicon"insulathm1fnTnnwpr4tran«I

the

Offer Underwritten

have to

agreed that instalment

power

w,uv,u

Increases Tomorrow's Magnitude

The dominant fact about
it

smaller

The "heat barrier" which limits
4icat

N.aJV*

sumption in the United States to¬
level.

a*/ reasonably
sure, if we had

similar information about jewelry
that we could find something like

Westinghouse Electric air chemist reports laboratory tests of
organosilicons revealed satisfactory insulation performance
at high temperatures, and permitted construction of 50%

Studies in the

within

short time.

•

bring this about.

con¬

merchant.

important

appliance field indicate that, after
a
consumer
buys a refrigeratory
he is usually back for some other

individuals, feel a strong
increase our earnings,

the better the chance

that

out

obviously

are

ST tendencjr t0 generate another one"
con. .
"

ie
point, the arguments in favor of
instalment selling are just as positive, although very rarely quoted.

Overcoming "Heat Barrier"

Consumer credit and instalment

selling
for the

in- the tfir$t sale, and

From the broad economic'view,
— 0

motive, and certain¬
instalment
selling "makes
a
great contribution.

ingredient appliance

of accomplishment. And it is obvious that the sooner such desires
are felt, in terms of the consumer's unknown but limited earn-

uniform, the

terms

you;
admit that

must

instalment

these

grant

The

consume is a power¬

ful economic

Changed Economic
Oi Outstanding Consumer Debt

(1219)

these

materials

„

the 1956 fiscal year
amoUnted to $1,577,779,: equal to
$3.37 a share on 408,100 shares of

outstanding capital stock. For the
1955 fiscal year the company re-

net earnings of $979,131?
equal to $2.38 a share on 410,628

ported

capital shares.

H. L. Robbins Co. Adds
"

(Special to The Financial Chronicle)

WORCESTER, Mass. — Stanley
first given an outercoat insulation
ctaff
nf
of silicone rubber which oven H. Moor has joined the staff of
Conclusions
fforts to improve his economic
cures to a tough elastic coating. H. L.
Robbins & Co., Inc., 40
Let me sum up
very
briefly
osition.
It is then filled under vacuum Pearl Street,
why consumer credit is important.
share.
In the six months ended through
channels in the outer
Consumer Lives in the Present
First of all, for the consumer,
June 30, 1956, sales were $153,coating with a silicone resin which 2 With Livingstone, Crouse
tncloltvianf
At any; given
moment in his consumer credit and instalment 713,794 compared with -sales of cures F« a solid void-free insulat(Special to The Financial Chronicle)
ife, the consumer's knowledge of selling make investments possible $116,736,425 in the similar six ing material,
FLINT, Mich.—Harry C. Burke
he future
is very
limited. He in all the commodities and dur- months of 1955. For the 1956 first
?
,
and Howard Levitt have become
nows
what his present status is' able goods which are so important
half, net earnings after preferred
Superior Power Transformer
nvestment in living, helps satisfy
is aspirations and stimulates his

Net sales of

Allegheny Ludlum
in 1955 were $255,240,619 and net
earnings after preferred dividends
were
$14,659,754,
or
$4.12
per

mcumflr

'-i?

*»

ut he

year,

hat.

He doesn't

ong

he will live.

e
an

the

even

I believe that the possibility of

know

how

making these investments, and of
obtaining a hom^or an automo-

He knows what
spend.

next year.

earn

But

He may have

idea that he will

;

after

oesn't know what he will be able

year

earning today, and what he
afford

of modern living.

what it willi a Part

doesn't know

be better off

the future, but he can't be sure
it.

bile

refrigerator

vision set

fine'jewelry, is stim-

ulating to a consumer' and adds
directly
and
indirectly
to
his
power.
"
Consumer credit and instalment

able to increase his
;uture earning power and his con-

important to the economy as a whole because they help
support
and
expand
the
high
level of consumption for which
this country
is distinguished.
I

:uming

Now, I submit to
extent

which

you

that the

consumer,

any

:onsumer, is

xtent

power,
on

;ncrease

depends

some

how much he wants tothem.

Not

entirely,

not

come

all

are

believe

would
us

our
as

national

high

consumers

had

in-

it is if
to

$9,095,131, or $2.44
share, compared with $6,245,011, or $1.85 per share in the 1955
half year,
were

per

tele-

earning

selling

dividends

buy

With E. E. Mathews Co.
;

"A power transformer constructed of
inorganic materials
and insulated with organosilicon

such
Butler

Mass.

now

with

Ronald

Edward

—

exposed.

addition,,

unit is smaller in size and

lighter in weight, and is also protected

Mathews Co., 53 State Street.

this

organosilicon

(Special to The Financial Chronicle)

SPRINGFIELD, Mass.—Van
f

Vander

has

conditions such

King Merritt

joined

the

King Merritt & Co., Inc.

staff

salt spray, rain,

dust, heat, cold and humidity.

can

be operated

the

world

forces may

&
.

Livingstone,
of

members
member

«.

the

yXchanffe

Joins Piersol O'Brien
KANSAS
.

Jensen

CITY, Mo. —Richard

Jr.

with

Piersol,

O'Brien & Adams, Inc., 1012 Bal-

timore Avenue.

' -

in¬

sulation against environmental

With

r
n

compounds is capable of operating
at temperatures well above those
to which a standard power transformer

(Special to The Financial Chronicle)

BOSTON,

connected with S. R.

Harry E. Huhn
Harry
suddenly

E.
at

Huhn
the

passed

age

of 44.

away

Mr.

indusin which our armed trial stock trading department of
be required to fight. Blyth & Co., Inc., New York City.
in any part of Huhn was Manager of the

The Commercial and Financial

Chronicle

...

Thursday, September 20,1956

(1220)

Capital •
Five-for-One Split

)'■

"Tug-of-War" status to continue,

Vic e-P resi¬

his shirt in the securities market

dent of

Group

oyer

i ties,

held

August,

have been

made. The
stockholder's

-- 'v

•

shares.,

any gain or loss or will re¬
ceive any form of taxable income

income

$8,882,838

$9,077,896

July 31, 1956

■

additional

issued

s...-

Number of new

1955.
Aug. 31, 1955
Dec.

tion

August, 1955

15,009

14,080

10,362

accumulations

period (86
——

due
period
the

may,

Payments

Shares, Inc. on Sept.

;;

since
i

(Special to The Financial Chronicle)

Sr.

Blosser

now

with

McDowell,

Straus,
North

710

months from income.
a

FOR

National Dividend Series is

bal-

mutual investment fund,

primary objective of which is

provide

versified

* and

1956.

making

nouncement,

asset

the

dividend

the

Edward

value

Sept.

an¬

last

of 61

cents

was

from

30 cents

from

paid in January),

total

Corporation

and .26%

net

profits

300

so,

the

in; such 'depressed' indus.-*

food;
tries

"Today

have

automobile and auto parts,

benefits from

there are two basic

dJiodon S'uncl

Massachusetts Investors

Stock Fund /'

Growth

cents

Century Shares Trust

bonds, preferred and common

stocks selected to

Established 1930

of
New York

Canada General Fund

provide reasonable current

income with conservation and the

York 5,

modem

long-term growth pattern.
selling at levels offering yields
he warned his audience
lower than high-grade bonds, I
likelihood of a "moderate
still think there are a lot of lowadjustment period, possibly dur¬
risk, good income stocks to own
ing 1957-58, as part of the econ¬ and
buy, if one looks around care¬
omy's healthy growth from today's fully in such stable industries as
$400 billion national production retail trade, utilities, tobaccos arid
level to a $550 billion level by
of

INVESTMENT COMPANY

over

Broadway, New

prices,

omy's

A balanced mutual fund investing in

' National Securities &

120

the

(WiKOtuiieaM,

j dealer or:
y,

stock

generally rising well into 1957."
He expressed confidence that the up' of the old-fashioned business
cycle, of course; presents great
managers of our nation's budget¬
opportunities for changing invest¬
ing and monetary affairs will be
ments by professional managers
successful in helping to "stretch
of money," said Mr. Schreder.
out"
today's good business, and
"For example, despite^ the fact
generally maintaining our econ¬ that there are
many leading issues

tained from your investment

does

share from income.

may

Research

'spread'
reflecting as it
daiy 'breaking

has been terrific..; Such a

production and con¬
will continue high and

INMassachusetts Investors Trust

yield possibilities in relation to

Exchange have- act^ badly dur¬

share from income.

stocks selected bc-

De¬

income—as

55 fiscal year was

$10.03 (a capital gain distribution

cents

investment in a di¬
of bonds, preferred

that

The adjusted total for the 1954-

five

25 cents

Rubin,

cause of relatively high current
the risk involved. Prospectus and
other information
be ob-

Fi¬

group

common

Society

1965.
i

experienced

The

before

adjusted to reflect a three-for-one
stock split in February, 1956.
The new payment lilts the total
for the year ending Oct. 31 to 46
cents a share from net profits and

President, reported the fund's net

INCOME?

anced

and

In addition

capital gain distribution of 61
a share was made in Janu¬

In.

in the past12

by the company

ary

INVESTING

>
,

possibility

(1954) LIMITED

long-term growth of principal.
VJJe

Bond Fund

invest in

STOCK

FUND
BOSTON

ATOMIC SCIENCE

A mutual fund

through

investing in diversified

iV.;*-.

stocks of well-established

common
.

relating to the shares of any of these separate,
be obtained from authorized dealers or

companies selected for the possibility of

A prospectus

long-term growth of income and principal.

ATOMIC

investment funds may

DEVELOPMENT

VANCE, SANDERS &

MUTUAL
'

Managed and Distributed by NORTH AMERICAN

FUND, INC.

GET THE FACTS AND FREE

PROSPECTUS

Russ

Building

•

SECURITIES COMPANY

Development Securities Co., Inc.

1033 THIRTIETH

Dept. C

"Investment

Tel.

FEderai

3-1000

DEVONSHIRE

BOSTON

Company Managers since 1925"

Wbolatafa Raprosantativas; Boston •Chiqago* Dallas*

COMPANY
If

STREET

above

STREET, N. W., WASHINGTON 7. D. C
«

111

San Francisco 4, California

Prospectuses available from Investment Dealers or the

Atomic

lost

historical • ^declines;' ^&nd, nearly
two-thirds of all;* the; ;conimon
stocks on the New York Stock,

The final

cents

Water Street.

>:=

Axe-IIoughton Fund B directors

January

founding

-4

■

and

With this payment

1933.

MILWAUKEE, Wis. —Harry J.
Ellis,

;

address

Analysts

bear'

have

stocks

ferred

quarter payment last opposing each other over the past
dividends
year was 35
cents a share, in¬
totaling 31 cents have been paid cluding 30 cents from net profits

With Straus, Blosser

its

■

X. Schreder

perfect ex¬ farm equipment, natural gas, rails
have voted a record fiscal year- ample of a stock market which is and railroad equipment; and- in
neither bull nor bear, but rather such
end payment to shareholders of
growth industries as avia¬
40 cents a share, including a dis¬ a market which is in the midst of tion, oil, chemical, drugs,; elec¬
tribution of 35 cents a share from a healthy character change," ac¬ trical equipment and electronics."
net profits and a dividend of five
In applying this specific invest¬
cording
to
Mr.
Schreder.
He
cents a share from income.
The
ment advice, however, Mr. Schre¬
payment will be made Oct. 29 to pointed out that "just as various
industries'
activities
have been der reminded his audience that
shareholders of record Oct, 1,

17 declared
a dividend of seven cripts a share
OMAHA, Neb.—Donald L. An¬ from investment income, payable
derson has become associated with
Oct. 27 to shareholders of record
Chiles-Schutz
Company,
Farm Sept. 28. It is the 68th consecutive
Credit Building.
dividend declared by the company
(Special, to The Financial Chronicle)

14, 1955.
«s

.4
•

American

of Selected

Directors

Joins Chiles-Schutz

Sept.

■.

To Stockholders

Denver.

compared with a value of $9.77

Fuml

Mr,
Harold

the past year,!' according to
Schreder.
"Bonds and pre¬

troit, at the Fort Shelby Hotel, on ing the- past 'sideways*;* year—
hundreds of them down 20% to
Sept. 19, Mr; Schreder said, "we
40%, while' others haVe advanced
are currently enjoying a new rec¬
- */'<', X.r.
ord in
dynamic prosperity, and equally sharply."The divergent and, rotating po¬
practically all the basic economic
measurements
strongly
indicate sition: of stocks;, in; this hnarket

Even

precise

Corpora¬

Management

Hamilton

Month of

July, 1956

mergers,

estimate

j,:

$437,966
; 422,394

number of funds may vary slightly from period to period
liquidations, new members, etc., and an individual company
at times, be required.
Except to a minor degree, however,
figures for different dates are comparable.

With Hamilton Managem't
(Special to The Financial Chronicle)

31,

August, 1956

plans opened in
funds reporting)
*The

; COLUMBUS, Neb.—Leonard N.
La
Benz is now affiliated with

Short-Term Bonds

S. Governments and

$476,177
426,732

Month of

stock

36,629

'bull'

strong

$91,240
-31,894

Month of

$123,829

one

the

clined from 25%

of
the country's

August, 1955

$109,627

Plans

Accumulation

not

split,
will
changed by the split.
the

e c u r

Inc.,

$7,286,002

Month of

The total cost basis for Fed¬

each
stockholder's shares, including the

sumption

Aug. 31, 1956

income tax purposes of

J and

Exec utiv

than

the-

watched

industry's leading stocks have de¬
to 40%."
/ ;
"One could have been either a

New

July, 1950

econo-

Holdings of Cash, U.

split

tax.

leading

8/31/55

7/31/56

39,544

Redemptions

eder,

nancial

August, 1956

Sales

largest mutual funds.

Month of

market

stock

Detroit, who
general econ¬
omy and the average -stock move
moderately forward over the past
year, while automobile production
has declined around 25% and the
have

ac-

York

Funds*

8/31/56

•

---

result of the stock

Federal

•

come,"

the

Financial Analysts of

time

some

....

dynamic 'tug-of-war' in business
and

'tug-

Harold

Month of August, 1956

—

Open-End

assets

net

Total

Immediately before the split. .
the opinion of counsel for
the corporation, no stockholder

Statistics

126

,-v

'i*. In.

eral

Moreover,'

state

cording

(In 000's of $)

will not be reduced by
the stock split since each stock¬
holder will .thereafter hold five
times as many shares as he held

purposes

this

for

credit.
that

remain

will

of-war'

securities and short-term obligations
the 126 mutual funds totaled $476,177,000 at the end of
compared with $426,732,000 held at the end of July. •

Open-End Company
^

holdings

as a

appears

Cash, U. S. Government

had the split not been

will realize

and stock market - movements Seen
it taking place. Certainly,? he added,
"no one is- better aware of ?this

business

last year.

'the additional shares
will be issued as at the opening
of-business on Sept. 25, and certi¬
ficates for the "additional shares
will be mailed to Stockholders. ;
From and after the opening of
business on Sept. 25, the net asset
value ("determined asset value")
and liquidating value per share;
will reflect the stock split, and
will be exactly one-fifth of; the

each

been

booming

Schreder

tightening

at that time,

tween

says

year's high level of total business,
so have similar sharply divergent

the stock
suspended be¬

year,

mutual fund shares remained
popular in August when investors opened 15,009 new accumulation
accounts; according to Edward B. Burr, Executive Director of the
National Association of Investment Companies.
This/compares with 14,080 new plans, opened in July, and
10,362 in August a year earlier.
v
Reporting on the Association's 126 open-end member com¬
panies, Mr. Burr announced that on Aug. 31, net assets' amounted
to $8,882,838,000, down from $9,077,896,000 at the end of July.
On Aug. 31, 1955, net assets totaled.$7,286,002,000,
Investor purchases of new shares in the amount ot $109,527,uuu
in August, compared with $123,829,000 in July and $91,240,000
in August, 1955.' ' *
"
"/v' ;'<T"
Share
redemptions amounted to $39,544,000 in August, as
against $36,629,000 the month before and $31,894,000 in August

stockholder of record,
at ^ the close of business j>n Sept.*;
24^ four additional shares jtor-each
outstanding
share
of : Common
Stock, $1 par value, held by him

value

past

has

market

Growth

regular purchase of

for

Plans

ing to each

amount which it would

the

"For

Accumulation Plans Continue

be effected by issu¬

stock split to

for

RICH

By EGBERT R.

the stockholders
the authorized
capital stock from 500,000 shares
to
2,500,000 shares of Common
Stock, $1 par value. At a meeting
of
the Board of Directors held
Sept. 17, the Board voted a 5-for-l
increase

total

Booming Business and Tightening Credit

14,

Sept.

voted

•

.i-

meeting

stockholders'

the

held

Stock Market Seen Suspended Between

\-/1:

General

Los Angeles* New York •Washington, D.C.

NEW
6l

CHICAOO

YORK

Broadway

LOS

South" {.aSalie Street

Zio

ANGFT.F.S

West Seventh street

Volume

184

Number 5570

The Commercial and Financial Chronicle

investing—income and price ap¬
preciation. - He said. ;that ' twhile
there is no reason for long-term
investors to be disturbed,
after
sharp arid substantial rise
in stockf prices as has. occurred
over
the past three years, it is
such

the planholder, in
age,

assurance

planning"
pleted.

his

"
'v •
•
explained that

American

Plan works

With

initial

his

payment

for

little

vBV GERALD D

ten

mon/th for
Chemical Corn

$10

The

years.

fits of both income and price ap¬

monthly

payment

the

increases

! The Milwaukee
with

pany

all,

McKF.EVEP

Road, in comof the North-

most

increases

wage

final

carriers,
turns
in the
greater part of its earnings in the

> strongly,

indicated for. planholders' ownership interest in

the i prosperous
outlook for the next decade, Mr.

-fin

Fund

Boston

decade."

the next

discussing

Fund

list

vised

and

through

diversified

and

America's

the

latter months of the year. Largely
for this reason the market has not

said,

total demand
rapidly growing economy,".
Therefore, to meet this huge de¬
mand, we must have more' ma¬
chines — capita 1 investments
which provides both the tools for
prosperity and the basic oppor¬
tunity areas for investors to snare
in that prosperity."
Mr.
Schreder, in referring to
capital investment generally as
the most powerful driving force
toward
prosperity,
specifically
sees
a
$550 billion level of na¬
tional output of goods and serv¬
ices over the next decade, "with
attendant high levels of employ^
ment, income, spending,, saving,
etc. Corporate: earnings, as meas¬
ured by the Dow-Jones Industrial
Average,
should increase from
today's $36 per share level to the
$50-$55 area, dividends - to be¬
tween $30 and $35 from today's

months

welfare
there

income 5s that

51/4% 1st Mtge.
*

year

last

are

new

offered

this

Earlier

the

$1.6

underwriters

bid

award

competitive sale

won

99.3811%.

The

offering

oversubscribed and the books
closed. Issuance and sale of the
was

bonds

earnings for the full
expected to be

same

the

as.

1955

begun

estimate.

were

of last year work was
the flat yard at St. Paul

it into

convert

modern

(Dow-Jones
*

700

decade."

•

Boston Fund Shares

Payment
through

available

$10-a-month-lay-away-plan to
millions of working people who
are
becoming "the new investor
class" as the nation's economy
continues to prosper and expand,
according to Barnard C. Luce, Jr.,

President

American

North

Planning Corporation, New York
City.
North American Planning' Cor¬
...

poration is an. independent sell¬
ing organization formed to sell
the

largely untapped

investment

the

new

Workers

systematic

market

plan

population

among

salaried

has' been, devel¬

which

oping since the 1930s. r.Mip Luce
explained
that- while
the
$10
monthly lay-away plan is not en¬
tirely riew^thrifact Mhari :yance*
Sanders & Company, one of the
largest distributors of investment
company - shares and; sponsor of
Boston Fund, recognizes this vast
new

tial

investing public
market

poten¬

distinct forward

step to the selling of mutual funds
on
a
greater mass level; thereby

broadening the base of ownership
American industry and creat¬

ing

mocracy.
:

should

from

come

completion of the Council

can

Plans,

participate

any

job-holder

the

dynamic

growth of the nation with his $10
or
more
monthly plan payment
for Boston -Fund shares.
As his
is put into the Fund, he au¬
tomatically becomes the indirect
of shares in such companies
as
International
Business .Ma¬

the

Bluffs

yard.
Meanwhile,

the

road

has

been

railroad lines

been

revenues

with

submitted.

1956

can

matter

other

roads

for

solving

b0th

for

Of track

doned

as of Dec. 31, 1955.
The
the outstanding
capital stocks of companies whose
operations supplement or extend

company owns all

the

service

the

Transportation

System, and common stocks of
various warehouse, real estate and
land companies. It also owns one-

the

been

year-to-year
has

been

less

the

Milwaukee,

about

60%

gain
in
than that

Omaha
trains

gain

the

the lirst

has

overall

were

expenses

lion

$7.7

cost
been

the
an

tion

two

years,

precluded

the

North

the

Southwestern

tion

rectly

the

maintenance

Ry.
Co., and di¬
through subsidiary com¬
panies has fractional, interests dn
several terminal companies.
;
or

For the six

months ended June

30, 1956, Southern Pacific Trans¬
portation System and the sepa¬
rately operated solely controlled

1.6

points

percentage

period

rate

ern

reduc-

for

passed
of

months of this

seven

year
as
against 39.2% for the
similar 1955 period. The 1955 report of the Milwaukee pointed
with
justifiable
pride
to
the

net

reduction

Ratio

38.3%

which

was

affiliated companies, had consoli¬
dated

railway operating revenues
$335,273,000 and consolidated
income, $29,561,000.
In the
like period of 1955, consolidated
railway
operating
revenues
amounted to

$325,403,000 and

con¬

solidated net income, $34,453,000.

all

but

ville)

BOSTON,
Mass. — Henry
C.
Everett, Jr. has joined the staff of
S.

Federal

Burbank

Company, 80

Street.

Form Adriatic Sees.
been

Securities

formed

engage

Officers

are

dent,
were

Co.

and

President

with

New

securities

225

City,

to
business.

Albert Bradick, Presi¬

Louis
.

offices

York

has

Lasus,

Treasurer.

ViceBoth

formerly with Graham, Ross

other

(Bensen-

capital

im-

pleted in 1952 and 1953 respectively, but benefits to the Transportation Ratio were obscured in
1954

Corp.

and

decline

the

in revenues

reasons

two

are

rather

the

why this year's expenses

places
at
5%
the 6% increase that

Milwaukee

rather

than

granted nominally,, is estimated at $10.8 million annually,
was

based

1955

traffic, whereas the

worked

satisfactory
'

out

basis,

the

age

Newhard, Cook
111.—Warren

Barclay Inv. Adds

(Special to The Financial Chronicle)

CHICAGO, 111.—Gilbert J. Currie

has

become

associated

with

Barclay Investment Co., 208 South
La Salle Street.

■

;•

With Betts, Borland
y

(Special to The Financial Chronicle)

CHICAGO, 111.—Sidney Rubenstein

has

become connected

with

Betts, Borland & Co.., ill South
La Salle Street, members of the

obvious

got out of hand. First, the freight
rate increase of March 7, which

Sept.

that year.
There

away

79.

the operating efficiency that has
taken place is not as evident m New York and Midwest Stock
the road's Transportation Ratio Exchanges.
and in other ratios which are a
percentage of gross revenue as it
Hutton Adds to Staff
is in physical measures. .Tor in¬ ;
'
(Special to The Financial Chronicle)
stance, the Milwaukee has enCHICAGO, 111. — Theodore R.
joyed a 60% gain in the overall Boardman has become
affiliated
efficiency factor of gross tonwith E. F. Hutton & Co., Board
miles per freight train hour since
of Trade Building.
1946, and this increase has been
'
'-;■■■
'
fremarkably
steady
each
year
since 1948 with the annual increJoins Richard J. Buck Co.

dieselization, to
of
yards
at

provements. The conversion of the
Milwaukee and Bensenville yards
to automatic operation was com-

Adriatic

ascribed to

and Chicago

point where
be

Hubbard, member of
Stock Exchange,

York

BELLEVILLE,

tively poor revenue trend of the
Milwaukee, the improvement in

1945.

modernization

Milwaukee

(Special to The Financial Chronicle)

Nelson

complete

was

since

mutUally

the

Leopold
has
become
affiliated
with Newhard, Cook &
Co., Com¬
mercial Building.
He was pre¬
viously with O. H. Wibbing & Co.

that was shared by this road
while the Korea affair^ was. in
progress.
Because of the rela-

Transportation
for
that
year,

the lowest

This achievement

the

Nelson Burbank Adds

the

can

riot

(Special to The Financial Chronicle)

basically more a matter of .territ°rial conditions .J?1311 ,of manJgement. The traffic and revenue
}rend of the Milwaukee has
la^d b^md the corresponding;
trends of both its district and of
fs I even during the bulge-

disappointing has been the
sharp increase in the road's Transportation Ratio, which was 40.8%
first

reached

Joins

be revived when the

l°n&er term problem
traffic and revenues, which

the

Most

for the

has

are

New

both roads have indicated that the

consolidation

revenues

Western

million, and the excessive rise 111

spite of

The

including the previously

Edwin

aban-

half of the capital stock of Pacific

expenses was in

op¬

Edwin D. Hubbard

for

Fruit

Express Company and 88.4%
capital stocks of St. Louis

"name"

gratifying."

very

tained.

rehabilitation of the North West-

the

are

passenger

Chicago

sponding 1955 period while revenues
showed a gain of only $8.2

five

this joint

•

only consideration, however. As a
side effect, the Milwaukee man¬
agement is hopeful of so cement¬
ing
relations
that, additional
freight interchange will\ be ob¬

the

matter may

rev¬

Chicago-

direct results of this operation

possibility of an
equitable arrangement. However,

mil-

the
in

factors,

both roads early this
the poor physical

run

the

mentioned reduction in
passenger
train mileage from the
weeding
out of unprofitable service.
The

expedient

were

Mil¬

of passenger revenues to
show greater increase thus far in
1956 may well be due to other

case

Plans

the

failure

problem of
relegated to

future.

According to the road's 1955 re¬
port, "results of this new associa¬

because

condition

compared with the corre-

some

year

months of this year,

seven

indefinite

the

But what has

gain.

this

for

involved

eration.

this, which had been under study

hurt
that, looking at .the results for

average

the
has

r0ads

of the Class I average. In the case

the

with

& North Western

terri-

its

Presumably

some

arrangement has

necessary

earned

enues

be reopened,

Consolidation

overwhelming

although it is true that,

expenses,
as

Mil-

the

far

much

revenues

General Electric. General Mo¬
tors, Du Pont, and a host of other
leading U. S. corporations.- Addi¬

thus

Road

not

tory,

Broadway,

thus providing

have

Pacific
Transportation
This system owned and
operated a total of 19,469 miles

chines,. Standard Oil bf New Jer¬

investor's ^option,

other

and

waukee

System.

$10

tionally, an unusual low-cost life
insurance feature is tied in at the

account.'

difficulties

The

and

owns

taken into

was

new

but the Milwaukee retains all

an however, a 3-judge Federal Court
the voided the increase£on the grounds
*
that certain data had not been

The interest,

year.

item,

waukee to acquire 24 diesels for
assignment to this service and to
spend $2 million for signal work,

last

This

made

full year will be in the neighborhood of $2.25 to $2.50 per common

earned

which had had it for

years.

yard improvement and at Othello,
Wash.,
and
the
new
Spokane

Southern

owner

sey,

Co.

in
Oregon, California,
Nevada; New Mexico,
Texas, Utah and Louisiana, which
comprise what is known as the

>■ V'i"-

<:•:!,*

Omaha, taking this operation over
the Chicago & North West¬

from

now appears

income

case.

property

" Under the North American In¬
vestment

each

Arizona,

kind of economic de¬

new

re¬

105% to par, and through
sinking fund, beginning July
1957, at par, plus accrued in¬

operates

one

made

series H bonds will be

Southern Pacific

ofthe nation's
largest and oldest mutual funds,

Fund,

The

A Month
is

im¬

ing funded debt.

terest in

Available
Boston

ex¬

and

trains of these roads
and since October 30 of last
operate over the line of the
Milwaukee between Chicago and

ern

ceived

previously

additions

Milwaukee.

passenger

$8,921,203 Federal tax refund re- effective last April 20. On June 14,

for

now,

the

amounts

pended

more;

for

ury

next
decade.
exclusively by

year,

tracks

deemable after Oct. 1, 1961 at op¬
tional redemption prices ranging

Pacific Co. to reimburse its treas¬

and stock
prices- could well double over the
to

Net proceeds from the financ¬
ing will be used by the Southern

the

for

easily rise from today's 456 value
level

Commission.

Thus; the, normal provements to its properties, and
Average
stock for expenditures in connection
Industrial)
should with the retirement of outstand¬

$21-plus. level.
value

subject to the authori¬

the

deal with the Union Pacific and
the Southern Pacific
by which all

auto-

from

the

en-

that earnings for the working
on
unprofitable
passenger business.
During.. 1955 a
total
of
1,311,144
unprofitable
share ''before funds" and some passenger train miles were elim50 cents less available after pro- inated, or 28%
of the 4,664,378
viding for the capital fund and total. for the past seven years,
sinking funds established by the Also, to meet the out-of-pocket
1945 reorganization and. bond in- loss on commuter business in the
dentures. In making the year-to- Chicago area, the road filed for a
year
comparison
it should be 20% increase in commuter rates
remembered, however, that the after appropriate ICC hearings
1955 figure
contained the non- and, the State Commission failing
recurring element of $1.25 per to act in the matter within the
share before tax representing the 60-day period ordered by the ICC,
credit of $2,660,951 interest on the the. latter declared the Increase

are

zation of the Interstate Commerce

within

This area is served

ings

1956

about the
of $3.27

result

1956

operations

$50 million plant construc¬

tion

having the total
capacity
of
1,724
cars.
This
project is scheduled for completion this year; and additional sav-

share in spite of the
deficit for the first
due to the road's
inability to close the gap in sueceeding months sights have been
the

some

fication

but

for

matic retarder yard with 35 classi-

million

Lowered

sold to Clearing Industrial Dis¬
trict, Inc. at an initial investment
if $1.8 million In
anticipation of
such.

latter part

per common

quarter,

steam

year

net

year

tirely eliminated. Yard mpderni- £ By far the most .spectacular*new
zation is being pushed and in the business
coup, however, was; the

road's

that

were

The

stated

located

were

1955
report
that 218 acres
in
Franklin Park, 111., have been

continuing to take steps to meet

the

year

had

President

today, $35,000-,
000 Southern Pacific Railroad first
mortgage bonds, 5 y4%, series H,
due
Oct.
1, 1983, at 100% and
accrued interest, to yield 5.25%.
bonds

not outstand-

were

industries

gressive in acquiring" sites for
plant location. It is stated in the

contributions.

was

the problem. With the delivery of
44 more diesel units earlier this

ing in the 1955 period.

Halsey, Stuart & Co. Inc. and

the

against comparable net income of

for the corresponding
period of 1955, adjusting the latter
for the $1,690,000 increase in interest charges due largely to the
issuance of $60 million
debenture

our

associates

year

States, but

problem of .the Milwaukee and its

$3,238,000

lalsey, Stuart Group

low manpower per

this

the

among

United

business problem which is
being
constantly attacked. Last year 143

place

the

$247,225 for the first management recognizes it

months

Seven
.

deficit of

third

granted

Secondly,
lag of over two
viewed with too great alarm the months before the
freight rate inrelatively poor earnings of this crease was instituted.
J
roadihus.far reported in 1956. In
cost control is the immediate
a

leading

"economically corporations.
speaking, we will have the unique
and rare situation of; relatively
Schreder

the

placed at $11,440,000 annually, in- the road's lines and its Industrial
eluding the increase in health and Department has been" most ag¬

short the Milwaukee Road showed

super¬

its

ranks 113th 4n 1956 estimated
revenues.' This epitomizes the new

preciation

with

commensurate

Chicago, Milwaukee, St. Paul & Pacific

j
western

hard-working money Exchange Bank of New York as
over
recent years is entitled to Custodian sends monthly re¬
♦rest' a Jittle'iri 4>r^>aration for- minders to each Planholder for
his
the substantial investment bene¬
monthly payments. Each
After

for

roads

in¬

only good common sense to begins, vestor receives a North American
to plated
more emphasis on the Plan Certificate under which he
continuous investment benefit of accumulates shares in Boston Fund
income, rather than on the irreg¬
ular benefit of price appreciation.

Securities

North

giant physical capacity. In mile¬
age the Milwaukee stands almost
even with the Hew York
Central

follows:

level

"estate

will Joe com¬

program

Mr. Luce

single pack¬

that

(1221)

■

ment of over 3,000 each year except 1953 when it was over 4,000.
Far from taking a fatalistic attitude toward the revenue and
growth problem, the management
of the Milwaukee is movhu aggressiv iy
toward the go * ot
buildi g the road's business 1 v to

•

.•

■

■■

(Special to The Financial Chronicle)

BOSTON,
Thibault
with

Mass.

has

Richard

Statler

—

Dewey

associated
Buck~&
Co.,

became
J.

Office Building.

He was

formerly with Coburn & Middlebrook, Incorporated.

The Commercial and Financial Chronicle...

(1222)

The following statistical tabulations

Indications of Current

latest week

Business

week
Latest

IRON

AMERICAN

Week '

month available.

month ended

Month

Week

INSTITUTE:

STEEL

AND

Indicated steel operations (percent

;

Ago

*100.6

95.8

96.1

Sept. 23

§2,452,000

♦2,477,000

2,359,000

2,320,000

1LUMINUM

(net tons)

(in

(bbls. of

output—daily average

Sept.

Sept.
Sept.
Sept.

7,036,650
H8.187.000

28,353.000

2.293,000

Sept.
(bbls.).
Sept.
Residual fuel oil output (bbls.).
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Sept.

13,080,000

7,820,000

gallons

Crude

each)
,
.
stills—daily average

runs

(bbls.)

—

output (bbls.)
Kerosene output (bbls.)

Gasoline

Distillate fuel oil output
.

Distillate fuel oil (bbls.) at

.Sept.
Sept.

Residual fuel oil (bbls.) at

Sept.

(bbls.) at

Kerosene

■

—

8,038,000

7,985.000

7,554,000

728,210,000

27,664,000
2,*11,000
12,321,000

26,174,000

2,ldo,ouO

13,241,000 >

7
7
7
7

175,571,000

177,557,000

32,401,000
138,4*9,000

29,632,000
124,173,000

137,836,000

Sept.

freight loaded (number of cars)

CONSTRUCTION

ENGINEERING

cars)—Sept.

47,198,000

46,783,000

45,541,000

47,111,000

Total

679,611

603,882

784,366

Public

•

655,066

(U.

coal

Bituminous

Pennsylvania

anthracite

$372,488,000

$243,863,000

$258,080,000

112,909,000

147,461,000

Electric output

139,515,000

130,954.000

110,619,000

112,817,000

97,202,000

100,654,000

158,619,000
119,481,000

26,698,000

33,loz,000

9,965,000

39,138,000

8,730,000
491,000

*9,990,000

9,500,000

8,519,000

601,000

583,000

456,000

Sept.
Sept.

8
8

BRADSTREET,

—Sept. 15
DUN

INDUSTRIAL)

AND

INC

Farm

PRICES

(E.

and

LI,339,000

Public

196

203

Sept. 13

5.622c

5.174c

$59.09

—Sept. 11

$58.83

$58.50

$56.83

$44.17

Other nonresidential

Straits

tin

Zinc

Louis)

44.750c

104.250c

100.375c

98.375c

95.750c

16.000c

building—

15.800c

14.800c

.Sept. 12

13,500C

13.500c

13.000c

All

COAL
:

91.94

.Sept. 18

91.06

91.33

94.92

.Sept. 18

99.84

100.32

101.97

103.13

103.30

105.17

110.88

.Sept. 18

101.97

102.13

104.14

100.00

100.65

101.80

107.44

94.86

95.47

97.00

,102.63

Railroad

.Sept. 18
.Sept. 18
.Sept. 18

98.73

99.04

100.49

105.86

Public

.Sept. 18

100.00

100.65

102.30

107.80

101.14

103.13

Baa

—

Group
Utilities Group

Industrials

109.06

108.52

All

127
51

(net

tons)

;

Public

...

3.12

100

3.31

Flaxseed

3.94

3.59
3.40

3.71

3.61

3.29

Rice (100-pound bags)—
Sorghum grain (bushels).
Cotton
(bale)
Hay, all (tonk)

Sept. 18

427.0

425.5

,3.56?>

'(,•

325

423.5,

Sept.

266,557

[ 267,147

Sept.

202,337

274,069

Sept.

480,810

418,025

519,034

Hay,

682,853

271,685
273,441

227,826

sales

218,751

Beans,

PRICE INDEX—

108.77

.108.65

108.97

Potatoes

106.53

Early

(customers'

-'•u

Number

^ug. zo

$54,134,322

788,504

862,226
5,437

1,038,124

12,136

8,002

4,724

856,789

1,030,122

$43,664,019

$53,447,057

790,049

200,370

—Aug. 25

2001370

EXCHANGE

STOCK

SALES

.Aug. 25

MEMBERS

(SHARES):

TRANSACTIONS

FOR

493,170

„_

Aug- H
Aug- 2^
Aug« 25

sales

ACCOUNT

276,180

210,440

224 5.'JO

276480

2Tol440

522,500

418,790

Apples,
Pears

448,450

447,090

417,190

8,769,830

9,216,920

8,864,030

524,710
10,465,620

597,140
9,542,710

9,281,220

10,990,330

Other

227,370

303,670

1,160,070

221,870

175,700

Aug. 25

28,500

18.300

208,410

191,270

275,280

246,910

209,570

296,980

402,618

461,755

521,955

84,650

83,450

101,410

665,531
205,900

Aug. 25
[IIAug. 25

510,675

570,908

625,620

863,634

.595,325

654,358

727,030

1,069,534

Aug- 25

-1,826,268

1,855,645

2,170,565

2,170,251

Au8- 25

320,170

[

sales

AuS- 25
Aug. 25

sales

Total sales

WHOLESALE

221,400
;

21,700

;

_Ir"r""
~

STEEL

227,046

20,946

2,195,788

6,617

7,251

12,936

12,228

;::.//;77:':44':

37,723
90.453 ?

65,686

2,999
•"
•

.
.

3,008

51,821
.

;.r

171
193

957

36,874
106,234

30,475
-

192

161,375

STEEL

1,907,637

67,760 : "
31,311

(barrels)

31,682
148,383;
^

37,680

__:

STRUCTURAL

■*.;■

29,622
-

3,237
263

r^23V
1,02a

169,880

146,860

337,230

369,414

284,719

;

219,444

(AMERI¬

CONSTRUC¬

OUTPUT
of

(BUREAU

288,166

(tonnage)—estimated

165,470

MINES)—

June:

production of recoverable metals in the
States:. V:
s ;.77:I:";'r'-'
(in

fine ounces)

(in

fine

152,018

(in

short

*145,624

160.817

*3,128,769

3,085,197

95,443

*99,664

89,392

7-'

*29.848

28.427

*47,438

43,477

$900,465,909

$849,623,503

654,404,870

686,410,493

644,435,557

81.03

76-23

75.85

$70,022,843
61,432,982

$96,728,965

$90,125,013

94,980,853

92,546,200

43,000,000

77,000,000

71,000,000

$877,202

tons)___

"!y-'7:;

tons)

(in

■:

3,191,837

$807,640,567

I_II

ounces)

Zinc

RAILROAD

EARNINGS

SOCIATION

$872,304

28,823

-IIIIIII

44,533

■

329,120

426,780

448,680

CLASS

AMERICAN

ROA.DS (AS¬
RRs.)—Month

of July:

Total

operating
operating
Operating ratio

■.

Taxes

1,747,265

1,740,008

2,060,970

2,148,254

Net

2,067,435

2,069,128

2,487,750

2,596,934

Net

revenues
expenses

■

-_i___7y_____7_____III~III;III,.':

railway operating income before charges
income after charges
(estimated)
ESTATE

AREAS

115.1

♦114.8

114.5

111.4

Sept. 11

90.1

*89.2

89.0

89.6

Sept. 11

103.9

*103.6

202.8

102.2

—

farm

and foods

Sept. 11

88.5

87.5

83.2

Sept. 11

122.6

*122.4

122.2

117.9

and

Insurance

85.4

—

figure.

1956,

loan

—

HOME

June

NON-FARM
LOAN

(000's

BANK

omitted):

companies

Miscellaneous
Total

associations

Bank and trust
companies
Mutual savings banks

FINANCING

BOARD—Month

Savings

Individuals

Monthly

States)

Lead

261,360
291,160

^Includes 1,110,000 barrels of foreigii crude runs. §Based on new annual
capacity of 128,363,000 tons as
against Jan. 1, 1955 basis of 125,828,319 tons.
tNumber of orders not reported since introduction of
Investment Plan.
tCorrected figure.

33,391

16,032

2,029,023
6,396
13,031
; '
' ■ 22, >

171

Copper (in short tons).

29,800

Sept. 11

products

♦Revised

INSTITUTE

Silver

285,910
'

REAL

commodities

All commodities other than

Jan.

____

11,058

United

100):

Processed foods
Meats'

26,948'

93,433

.__i.

(pounds)

Month
Mine

Commodity Group—
Farm

9,350

230,277

(bushels)__

crop

___^

3,800
v:

24,069

PRICES, NEW SERIES —U. S. DEPT. OF

LABOR—(1947-49
All

•

(tons)

Total

sales

Other

-3,923

16,257

___-_I__IIIZ

;,i 5,175

6,022

...

the floor-

Total round-lot transactions for account of membersTotal purchases
Short

1,564,530;

153,522

commercial

Gold

sales

Other

METAL

1,236,240

Aug. 25
Aug. 25

off

371,106^

233,676

(tons)—.

TION—Month of July:
Contracts closed
(tonnage)—estimated

the floor—

sales

and seed

sugar

(tons

FABRICATED

1,023,260

1,463,740

"TAug. 25
"Aug. 25

2.525[
-

442,557
1,419,170

34,015

States) (tons).^
Apricots (3 States) (tons)

212,980

977,830

purchases

Short

1,218,810

1,205,200

___________________

transactions initiated

Total

1,427,210

Aug. 25
-

Total sales

Other

197,020

1,218,190

1,225,200

purchases
sales

1,201,780
1,028,180

——

16,968

5,134

■v
*

Aug- 23
Aug- 23
Aug< 25

sales

59,195

24,174.
4,708.

16,002

;

156,258

(bushels)

CAN

4,749

9,389 J

"111..

Shipments

Aug- ^

Other transactions initiated

24,069

Cherries (12

10,139,850

59,312

20,624

6,022
3,923

_I_IIIII

Peaches (bushels)

MEM¬

Bhort sales

Short

112,782
9,097'

8,537

461,928
1,445,460

14,721

107,707

16.290

53,533
"241,100"

13,552

59,536
21,316
4,687

41.258

46,457
189,676

•

29,678'

44,250
-

4,885

(pounds)

Pecans
.

Total sales
Total

45,276

purchases

Other

50,326

163,293
as 13,115
108,817

;

Broomcorn

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total

400 295

summer

Cranberries

sales—

Total sales

ROUND-LOT

361,472
21,961

21,961

bags)_I

—

Sugar beets (tons)___i._

STOCK
TRANSACTIONS

Short sales
Other

213,644
1,499,282

Sweetpotatoes (hundredweight)
.Tobacco (pounds)

ON THE N. Y.

ROUND-LOT STOCK

AND

ACCOUNT

round-lot

182.244

1,139,727

:
___

(100-lb.

20,070:

206,683
1,154,595
370,254

summer

Grapes

Round-lot purchases by dealers—
Number of shares
TOTAL ROUND-LOT

224,530
1

34,798' C'i?

(hundredweight)—

7Sugarcane for

$38,297,221

703,0471'
233.714

37,945

;

936,761;

217,042

8,789 v

(tons)

3,241.536 »•;
X:

721,946

244,628

""""

Total

785,325

—Aug; 25 ?
Aug. 25

—

"I
'

sales

■*
"

spring
spring

Fall

Hops

by dealers—
shares—Total sales-

Other

FOR

986,650

$73,870,605

sales

Short sales

Total

1,297,777

$59,560,978

40,015,653

-—

1,094,277

61,196,163

776,368

total sales

Customers' other sales
Dollar value

Round-lot

Late

1,106,685

sales

short

Late

purchases)—t

(customers' sales)—

of orders—Customers'

Customers'

Early

Aug"

Odd-lot purchases by dealers

r v

938,988
■'

(cleanea)

(pounds)

3,143,779

966,574
721,946
"

Winter

Dollar value

Number

3,335,730

■

Peas, dry field (bags)
Soybeans for beans (bushels).

dealers

f ■

(tons)________

ediHe

ury

Peanuts

alfalfa

;
.

wild :< tons)i_

Hay, clover and timothy
Hay, lespedeza (tons)-

Sept.

IIIIII

ACCOUNT OF ODDLOT
DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Number

1,916,000

I__IIII
™1.

(bushels)

Hay,

409.9

8TOCK TRANSACTIONS FOR ODD-LOT

Odd-lot

43,052.000

♦1,869,000

3.72

3.68

(tons)

spring (bushels)______;

3.64

3.75

Percentage of activity
Unfilled orders (tons) at end of period—

AVERAGE

3.69

ASSOCIATION:

Orders received (tons)—

1949

:__I_IIIH
____!!

3.81

3.83

MOODY'S COMMODITY INDEX

OIL, PAINT AND DRUG REPORTER

(bushels)

3.71

4.08

—Sept. 18

Group

Production

30,300,000

2,699,000

AGRICULTURE—

4.04

3.75

—Sept. 18

Group

NATIONAL PAPERBOARD

3.22

—Sept. 18

—

Utilities

Industrials

DEPT.

3.50

—Sept. 18
Group

REPORTING

3.62

—Sept. 18
Railroad

CROP

—

3.55

3.44

44,610,000

7
7

3.63

•

—Sept. 18

35;

MINES)—Month

3.56

—Sept. 18

Aaa

3.31

3.73

2.88

105

.123
;

3.21

3.63

:
..

3.76

3.19

131

(bushels)
Other spring (bushels
Oats (bushels)
•„, n.■
Barley (bushels)
II_IIII
R"e (bushels)
:—____II_III[[

569

3.14

—Sept. 18
—Sept. 18

134

Durum

Average corporate

;

anthracite

Winter

223 7

575

lignite (net tons)

PRODUCTION

BOARD

Crop as of Aug. 1 (in thousands):
Corn, all (bushels),
Wheat, all (bushels)—.

DAILY AVERAGES:

YIELD

Government Bonds

100.98

.Sept. 18

Group

BOND

MOODY'S

(BUREAU

Pennsylvania
CROP

230

107.44

.Sept. 18

corporate

380

•

134

;

Bituminous coal and

Government Bonds

Average

OUTPUT

1,312?

"j_

water

of August:

615

«nd development
public—

other

•

Public service enterprises

MOODY'S BOND PRICES DAILY AVERAGES:
U. S.

and

323

234

15.000c

.Sept. 12

Louis)

(East St.

43.925c

38.475c

-Sept. 12
.Sept. 12

(St.

Lead

39.675c

38.150c

.Sept. 12

York)

(New

(New York)

Lead

Sewer

39.650c

39
85

338

______

381

UIIII

Military facilities
Highway
.»■

434

1,365

Hospital and institution

172 7

'462

386

Educational

$63.15

37.900c

159
"

1,419

;

5.622c

39.575c

31
23'

$53.04

.Sept, 12

5.622c

Electrolytic copper—
Domestic refinery at
Export refinery at

43.

building

$63.04

352?

.—Sept. 11

;

187"

195 >

26
;

•

Nonresidential building
Industrial

QUOTATIONS)

•

481

* •;

'•••-

161

telegraph

construction

Residential

191

289

217
;

?39

and

-186

public utility^-—
All other private

10,623,000

11,794,000

10,955,000

115

45.

"V.

;

Telephone

286

;

685 f
205 ;

;

119

v..

301

1,435

vw*

268

219

r-M 33 ■ ■

786 ;

"I ' 1,587*

.__

—Sept. 11

J.Z.

171

institutional—

utility

142

123

construction

Public

1,410

294 ' l

2.893

1,225

273

building—;

;

$4,205

2,829

;

786

;

.____

Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

,v'

.___

Railroad

&
—

lb.)

(per

(nonfarm)___.

Miscellaneous

IRON AGE COMPOSITE PRICES:
Finished steel

.77;'

$4,394-

140

HosDital

108

107

1,402

and alterations^,.-,-

Other

000 kwh.)

(COMMERCIAL

FAILURES

112

7
-$4,261

building ,{nonfarm)_

Religious
Educational

' '

(In! millions)':

_i_________—

Other nonresidential

SALES

Office buildings and warehouses
Stores, restaurants, garages

7
-

INSTITUTE:

(in

7,770,213

1,220

222,570,000

ELECTRIC

9,100,946

7,764,776

Nonresidential building
Industrial

$381,189,000

232,973,000

INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE — 100
Sept.

EDISON

August

S. DEPT.

Social and recreational*.

(tons)
(tons)

lignite

DEPARTMENT STORE

9,721,436

1,622,163

8.077,805

2,842

OF MINES):

BUREAU

—

Commercial

Sept. 13

and

12,630

INSTITUTE;

Nonhousekeeping

;

610,056

•

Sept. 13
Sept. 13

and municipal

Federal

COAL OUTPUT

127,634

11,898

; Additions

Sept. 13

construction

State

150,800

17,399

New dwelling unitsJ———V'

701,992

715,236
602,248

Sept. 13

construction

Private construction

STEEL

construction

Residential
*7

NEWS-RECORD:.

AND

construction

new

Private

ENGINEERING

—

IRON

LABOR—Month
Total

Revenue freight received from connections (no. of
CIVIL

145,726

end of June

154,337,000
35,601,000

142,731,000

175,955,000
32,698,000

Ago

11,556,000
7,656,000

•)

(short tons)

BUILDING CONSTRUCTION

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

June

Steel ingots and steel for
castings produced
;,y
(net tons)—Month of July.*.
;
Shipments of
steel
products
(net
tons)—.,
> Month
of June
-

2,089,000

7,859,000

7,952,000

Year

Month

aluminum in the U. S.

tons)—Month

of aluminum

AMERICAN

6,655,250

7,107,750

7,085,850

MINES):

INSTITUTE:

condensate

and

of primary

short

Stocks

oil

(BUREAU

of that dates

are as

Month

89J.6

Production

AMERICAN PETROLEUM
Crude

of quotations,

cases

either for the

are

Latest'

Equivalent to—
Steel Ingots and castings

or,

Year

Sept. 23

of capacity).

production■■ and other figures for. the

cover

Dates shown in first column

that date,

Thursday, September 20,1956

$1,024,39

165,485

I_I_I

I
lending institutions

-7"" 77- ~~
,

III"!
III

158,375

494,234

507,942

516.07

161,659

152,085

171,34

308,742

318,133

300,77

410,122

425,359

449,32

$2,417,444

$2,434,198

$2,635,53

173.61

184

Volume

IJu^nber 5570

The Commercial and Financial Chronicle

(1223)
original tenders.
substitute

LETTER TO THE EDITOR:

Upon receipt of
the
company
one
naming
the

offers,

accepted

the

marked

entry

into

market
it

That,

pons.

jt-assmg of anotner week geiser-:
little change in the general
'nvestment
picture and in con-

nd;

corporate

new

Institutional

lean

seemingly

continue
if

mood

the

With King Merritt

are

those sent to market several

onths

the situation

ago,

ncouraging

has

Edenbo

A's for the older issues,, includ-

the

is not-.

pftrrn.

the

•

fYntnrv

rencies by

satisfied

present official

of
and

guarantee
guarantee

and

to
to

maintain
maintain

"convertibility" at the fixed
set—world

with

trade

the

such
such

dependable

36-irichyardstick-of-length.

Very truly

basis

points less than formerly with Eppler, Guerin &
offerings. And even. Turner and Southwestern Inveshough the supply of new bonds ? tors
as
been moving out speedily, in
on'trast with conditions several
recent

ore

onths

back,

inclined

not

Dallas, Nash Co. Opens

investors

potential

look

the

econdary market.

I PHILADELPHIA,
H.

Dallas,

Nash

J. Frederic Hazelett and Lewis

have

this

They evidently figure that therec
s
little chance of major change
°^lces m the Girard Trust Building to engage in a securities busin
the next two to three
,,

..,

years

oneywise, which would make it
ossible to "call" current offerings

refunding

asis.

i H.vG. Kuch & CM-:

Prospective borrowers appare¬
ntly still are mixed in their*
alculations

offices

at 42 West 33rd Street'New York

Ideas StilL Mixed.

business from

securities

•

...

Klein & Co.

to what lies ahead

would

Opens

convertibility."

move

Co.

Marcus

Baumann

with

offices

„

250

Street, New York City,

to engage in

2423

East

engage

FINANCIAL NOTICE

McDowell
securities

GENERAL REALTY & UTILITIES

business.-

How-

her

for

$ CORPORATION

Caleb Watson Opens

;4''':4% Cumulative
..

■

Income Debentures
September 30, 1969

Due

; '

JONESBORO, Ark. —Caleb C. NOTICE OF PAYMENT OF COUPON NO. 24
obtain
defi-r Watson is conducting a securities
Payment of the amount called for by Coupon
the " United business from offices at 624 Smith No- 24 representing Interest for the six months
i\/r
'•«
J
«LUZ^DOUin period ending September 30, 1956 on the above
Main
_

nite.

assurance
that

States

our

shall be
presently-

value

its

and

Britain

such

Street.

with WnriHa11
Wlin, waaaeii

for

assurance,

store our currency to "a dollar on

Debentures of General Realty &
Utilities Corporation, will be paid on September

Tr»A

Keea, inc.
'

30,

I95fl

Bankers

SAMUEL

Spencer Hancock Logan passed
13

Company,

REALTY

Successor
15, N. Y.

UTILITIES

CORPORATION

Spencer U. Logan SeDt

Trust

Trustee, 46 Wall Street, New York
GENERAL

awav

At any rate;
BAYONNE, N. J.-Klein & Co.: a fully convertible gold basis." 4
corporation has decided has been formed with offices at
Such a cooperative effort by the
0,,forego plans for sale of an- 445 Broadway, to engage in a se- United States and Great Britain
npther

debentures

sue

such

ecause

this

time

considerations.

Wilson & Co., packers, and their,
ankers disclosed that they had
ecided to postpone a $20 million
issue of
debentures
which
had

scheduled,

presumably

hq belief that things might imfrom the

rove

view-

borrower's

oint in the not too distant future.

curities

business,

Partners

are

Adolph P. Klein, Abraham Funk,
and Marvin Koenig.

NEWTON, N. C; — Robert H:
engaging in a secu¬

Morri^bn is
rities

business

East A

offices

from

Street.

Chicago Stock Exchange and the
York Curb Exchange.

POX, Treasurer,

September it, 1956.

DIVIDEND

Svin?a longiflness. Mr. Lo.an

NOTICES

GENERAL REALTY A UTILITIES
CORPORATION

New

ial

Corp., which has twice post¬

esult

that

its

$75

debentures

year

yesterday
nd

million

were

of 15-

brought out

4*4s, to yield 4%%,
;

well-received.

were

BOSTON,
curities

Mass.—Venture

Corporation

has

been

formed with offices at 24 Federal
Street

engage;

Officers;

business..

securities

are

Arden

Yinkey, Jr., President; Everett M.

corporate

new

ebt securities will put in a rela¬

tively quiet
"'udging by

period

John

Electric

Assistant

Qoster,
Secretary-Treasurer.

and

sound

Power

Co.

Board

ON CAPITAL

Directors

has

declared

world

samuel m. fox. Treasurer,

Sept<?mb<ir 17, im'

N. Clark Co.

a; whole," but admitted

that

can

a process

achieved

of evolution starting
gold standard."

will have the wisdom to
,

the

Macmillan

will

Pacific Gas and Electric Co.

real
made

been

"currency

the

convertibility"

*™ti0"

°£

further

"inflation." And if they will then
other

nations

Consecutive

Common Stock Dividend No. 163
The

Board

Directors

1956, declared

the

third

cents

quarter

per

snare

September

cash dividend for
of the year of 60
a

upon

the

Company's

capital stock. This dividend
be paid by check on October 15,
1956, to common stockholders of record
at the. close of business on September

common

will

28,

Quarterly Dividend

Board of Directors

The

has

de¬

dividend of 37 Yi cents per
on
the Preferred stock and
a

12,

toward

205th

clared

DIVIDEND NOTICE

62'/$ cents per share on the Common

stock,
1956

both
to

ber 3

payable

November

stockholders of record Octo¬
"■

1956

;
WALLACE M. KEMP,
September 12, 1956
Treasurer

i9"56.
K. C. Christensen, Treasurer

NOTICE!

NATIONAL AIRLINES

San Francisco, California

lated to open bids for $20 million
of

bonds

new

it-in

funds

struction
On

Co.

Tuesday to put

finance

Wednesday

will

con¬

the

with
eral

market,

But

the

outstanding funded debt
balance to go into gen¬

corporate funds.

Photo-Finish
The

treated to

one

of those

rare

was

situa¬

tions when initial bids for South¬
ern

Pacific

Co.'s

$35

million

27-year first mortgage bonds
opened yesterday.
Two

bids

groups

98.31

entered
for

the

were

New England Gas

INTERIM

December 31, 1956 of

equivalent to 12^2
be

The
a

meeting held September 13,1956

interim dividend in respect of the year

4Vi

cents per

per cent on

ending

the Ordinary Stock

£ 1 stock unit. The dividend will

paid, less British income tax,

October 29,

stockholders of record at the close of business

1956 to

September

15,1956.

KNIGHT, Secretary.

5%'%' rate. The company's
fficials, after due deliberation,
to

give the bidders an
opportunity to improve on their

Trustees

have

CONVHRTIBLB

United States of America
South Africa

Great Britain

Republic of Ireland

Canada

Norway

Australia

Sweden

declared

PRBFERRBD

Airlines, Incorporated, have this

dividend of
per

stock

Only
Cuba

1956. Both dividends

of business
H.

common

Oct. 15, 1956, to

the close

Secretary

Miami, Florida, July 9,1956

of the

common shares

R.P. Foreman,

payable October 15,
are
payable to

the

all outstanding

payable

payable October 1,1956, and a regular quarterly divi¬
dend of twenty-five cents (25*)
pet
share

dqy

regular cash quarterly

twenty-five cents (25c);

stockholders of record Oct. A, 1956.

the Association

shareholders of record

-The Bowater Organization

quarterly dividend of $1.12 Vf. per
share on the 4V$% cumulative

Association

London, England.

NOS.

DIVIDENDS

The Board of Directors of National

declared the

PRcJFtRRED AND

COMMON

Dividend No. 19

and Electric Association
t

DIVIDEND

identical
bonds

arry a

decided

declared

Pacific

world

NOTICE

The Board of Directors at

Southern

investment

Paper

Corporation Limited

new

part of this represents refinancing
f certain

The Bowater

Coal

Peabody

$35 million

put

debentures

new

planned.

now

NATIONAL

SMOOTH

ever

...

flights
the

offers
to

RADAR-

Florida

smoothest

and

air travel

known!

September 25, 1956'.
Moore, Jr., Treasure'

September 23, 1956.

'%:> CORPORATION
/

Committee,

have

NOTICES

UNITED SHOE MACHINERY

promptly

carry out 4hatyecommendatioiv by
progress

DIVIDEND

only

If Britain and the United States

encourage

DIVIDEND

scientific monetary system for the

week,

the calendar
of prospects.

what

hows in the way

Virginia

and

The

quarter-annual dividend of 20 cents per share
on
the Capital 8hares of the Corporation, pay¬
able
September 29,
1956,
to stockholders of.

is engaging £jcord at the close of business September 21,"

"Macmillan

establishment

and

Light Week Ahead
Underwriters of

SOUTH OZONE PARK, N. Y.-

financiers, known in a securities business from
ofCommittee,"
fices at 111-41—146th Street, un>
whichr in its report rendered in
1931, strongly recommended the der the firm name of Clairmonte
the

from the historic

Se¬

Clairmonte Clark Opens

^f^^committee of 14 eminent Clairmonte N. 'Clark

"by

Form Venture Securities

DIYIDEND

economists and

that

On the other side C. I. T. Finan-

poned its financing, decided to put
its
plan
in operation vwith the

a
as

Robert Morrison Opens

easily attainable; for it was;

seems

formerly, mentioned

was

Paa^

5/7ths-

grains of fine gold per dollar—or,
as
commonly expressed, $35 per
ounce,o{
goid.
Certainly there!
should be no objection to our giv-

ing

oi.

currency

'n the money market.

securities business,

partnership with

Britain;

♦

-■

at
to

Eugene M.

—

•

Hazelett,

proposed

claimed

Lucyle H. Feigin is conducting
a

Road
Frederick G. Shull

formed

offices

maintained

■

Opens Offices

assurances?■

carry

gainst such action..
.

with

lower interest

on a

In fact certain of the latter'

escriptions

FotVvWerefrformerly

ness.

Rosenson

have

reasonable concomitant of

ever, a

with

.Robbins

West 57th

long
in the di-

Co.

Mon-

Form Hazelett, Bobbins

Rosenson & Bauman

have

Nash

securities

business from offices at 144

Street.
He
A
TT~ was formerly,,
'
with First Investors Corporation.

yours,

PHOENIX, Ariz.

Pa.—Charles-"currency

Dallas and John

formed

Seymour

■—

tague

rection

Geller is engaging in

P. Robbins have formed

worth, and

way

k3CJfII1ru*; >»eiier>V/penS
BROOKLYN, N. Y.

2009 Chapel Street
New Haven 15. Conn.

then

gone

CpwmAn-

Frederick g. shull

?"
7 ,? °
^JJL? . J:
e p u a is
shall

Avenue.

values

cit-a

110

Field is conducting a securities
business from offices at 693 Stone

proceed

can

honest and reliable yard-

stick-of-value,

p er

cur¬

making them convert-

in terms of a definite weight
gold per unit / of currency-

main-

relation¬

guarantee that

nnrPMflWo
v• ' -7: .v l
ppreciable size.
-engage in|-a securities business
Older corporate obligations cur- *• under! the firm name of Century
ently are moving to yield from - Securities Co.
Mrs. Adams was

Jerome1 Field Opens

likewise with their respective

light and those holding
rorms t^enuiry Decs.
"value" to the
ucfi investments are not disposed *
DALLAS, Tex.—Rosalie Moore
trading na¬
o
push the market by any at-•• Adam? has opened offices in .the
tions of the
empts
to
liquidate blocks of Bankers Underwriter BuUdingt,to„ worlfj
is

erest

branch, office

BROOKLYN, N. Y.-^Terome h.

let y her

—

of fine gold.:?;\-i-v

poupd sterling
^

opened

Second Avenue,
North, under the
management of Dorothy M. Strock.

or' Com™ercial and

PETERSBURG, Fla.—R. F.
Campeau Company of Detroit has

demand,-

upon

move

Financial Chronicle:

ST.

by Britain would be for the U. S.
will maintain the dollar at 13 and
5/7ths

grains of fine

&f Co., Inc.,

•>

•

In- y

moment.

added

been

staff of King Merritt
Casco Bank Building,

Campeau Opens Branch

sterling's

reassure

by simply guaranteeing,

grams

tain the

can

of line gold ($2.80) is equivalent to its
value.; Reader Shull believes a reasonable con¬

Britain

City.

grams

Britain

assure

Britain

ship of $2.80 per pound sterling—
(Special to The Financial Chronicle)
which, of .course, means an exact
PORTLAND, Main*3 — John W.< value of 38.4

their liking.

terms

38.4

comitant of such

suggests

the world

trongly to newer offerings wiJh
higher coupons and yields
eceptive

that

money. *

(Special to The Financial Chronicle)

heir

easy

re-

investors

extremely

Haven reader

worth

BOSTON, Mass.—Jules, A.. Baer
now connected with A. C. Allyn
and
Company,: Incorporated, 30;
Federal Street. ,* '
'
'

issues,

yield,

cou- v.;
course, iwas
the?

With A. C. AUyn Co.
\

fclder

debt

standpoint of
ains unusually wide.

rom

New

2%%.andj3%

in a securities business from
of¬
fices at 335 Broadway, New York

Sterling's Worth

;• ••• 4

between

Of British

present par

ted

gap

first

money

1946, at which time

with

period of

the

road's

washable to effect 50-year fi-;

nancing

equence

the

long-term

the

since

George Beckerman is engaging

Assure World Trade

raised its offer to 99.111.

This

George Beckerman Opens

highest price of 99.3811. The other
group

NATIONAL
AIRLINE

THE

STARS

The Commercial and Financial
43

Chronicle... Thursday, September 20,1953

(1224)
fiscal,

BUSINESS BUZZ

and

the

dwindling

BeWnd-the-Sceo® Interpretations

placed
con¬

could stop a lo&
insanity. In other
words, Republicans in Congress
could
again
become
honest
of

gi A/OII

organized

women,

were.

X l/ii

/JLIf'Lf'

Capital

from tbe Nation's

key

but

they

tingent,
i-

•

With

oppose.

Democratic

conservative

Re¬

the

fronts,

tax

could

publicans

Regulatory Phases
Eisenhower "

Mr.

WASHINGTON, D. C.

government appears to be fol¬
lowing a policy of planning an
increase annually in its spend¬

With

—

possible outstanding excep¬
tion, it is difficult for the de¬
tached, cold-blooded, and non¬
partisan observer to discern a
prospect for any fundamental
change in the governmental climate under which business and

one

will

investment
next

from

have

tration

and

Congress

prise, Eisenhower benignly took
atives

fication? bill which would have

There .was

spending.

ably in higher

No seasoned member of Con¬

have

"It's

party was for reduced

•

:
,

and political

platform

speeches, and out

performed;/

Mr. Eisenhower in voting

spend¬

ble

election

comes

ex-, v out, it.can change, not the pros¬

son

1952 campaign for a "
toward the same.'
i
reduction in Federal
>
<!)." Assume: that President
expenditures, only to instruct i; Eisenhower; is re-elected, - with
tiis ghost writer, after the electa a substantial Republican control
tion, that' he "meant "drastic''; , of Congress.
This would con¬
vince the White House strate¬
-only as objectives, gradual us to „

achievement.

gists ' that;

point of fact, actual budget v
spending this year is "going
through" the $10 billion of sav¬
ings in security spending made
possible by the end of the Ko¬
rean War, to the extent of half
of it or $5 billion. This pre¬

policy

their
more
usual
of the many-sided wel¬
state
initiated
through
of at first "little" spend¬

fare
scores

1
:

supposes

scale

for

mates

grams.

probably will not work out to
be. It is altogether possible that
the current year's spending will
closely approach the post-War
II peak of $74 billion in fiscal
1953.
' '
;
Notwithstanding the fact that;,
in fiscal 1956 exceeded
estimates

first

tion

$8,141

spent

was

Administra¬

and almost
expenditures of the

some

the

twice

Roosevelt

the

much

years

(2)

re-elected but

weak

superior to that of the more
conservative
Republicans
i n

Democratic votes

over

the heads

Congress was
neither

possibility

for

the

current year now appear to

take

Revenue

full,
the

estimates

nearly

full

account

possibilities of the current

last

four

the

years

the

expected

groove

and

has

old-timers

the

with

love

the

been

due

belief

the

popular one does not
dare openly oppose him and one
gets
re-elected
by following
so

was

loves private

Then Ike would feel like Harry
in

though Trunot in the race/ which
bride feels when de¬

1952,

man was

then

counted

asset

office-holding Republicans, his
program bad election bait.
Re¬
publicans would begin to toss
-out the party

the

out

men

T&ft

who shoved

men

from

the

always try to
programs

Committee.

party's" leadership after 1953.

stopped it

C will be stopped by Harry Byrd's'
.

leadership whether Harry Tru¬
man,

Adlai

;were-

even,

for

expenditures

have
years,

anced

hope

for

the

posed

the

prospect

budget

that

the

couple
of

bal¬

hinges

the

boom

will

'go

ward

The official estimates also

himself

the

vote

Democratic

Chances. "

^^Ehls1/Is; Jh^pbsSibie^xception
to the thesis that the election
will not affect the governmental
environment

for

Adlai

pull

should

didn't show

And

his

predecessors,

election

the

any

gard for business

business.

re¬

such than

then

business

might1 panic into: retrenchments
he

smart,

got elected and were
would try
to woo

business. If busines

would

smart,

were

stop depending

Great

any

it,

Personality

upon

and. concentrate

save

getting

lesser of two evils

the

elected

to Congress regardless of party.

[This column is intended to

re¬

flect the f'behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
own

views.]

TRADING MARKETS
Botany Mills
A. S.

Campbell Co. Com.
Fashion Park

pro¬

Indian Head Mills

Victory?

Morgan Engineering
•

National Co.

Riverside Cement

Carl Marks & Co. Inc.

Sightmaster Corp.

;

one's election). Presum¬

the

the Treasury or

bring

timorous *." abouttaking

was,'

than

disregard of the value of money
or

loans for Federal spending, both
outside the budget.
Ixi fact the

large
,

Roosevelt and Truman made a.

;

the "Chronicle's"

monetary,

expect¬

which
peg future fiscal possibility
that Adlai Stevenson might
elected (this is not a forecast

exclusive of spending, either via

through insured

taking

the

ably the Democrats would glee¬
fully go ahead and with reckless
are

vigorously

business ;of
attacking private
business as such, and business

by Mr. Eisenhower.

of any

Summary of Fiscal Policy

were

risks for the future.

Another assumption on

much farther.

Eisen¬

deities

United States Envelope
A

they invariably
last

his

and

ultimately
that

Stevenson

Mr.

dedicate

recklessness

Stevenson, ; or

the year turn out to exceed offi¬
cial estimates

that

well;

joined in wishing business well,
And so s business has gone for-

boom.

even

serted at the church. Ike would

Finance

would

thereto, that

Hence business has

confidence

If Adlai

that would be changed if
Eisenhower were "repudiated."
All

did

it.

means

often says

enterprise and

kind

to*be

wants

him.

is toying with
If it
will be stopped
Senate

fallen

Democratic wolfing
thereof in one meal. Ike's magic

Harry Byrd is Chair¬
the

any

versus

(

Demo¬

the

crats could probably be

-expensive

change

could

tration

rank

Eisenhower

cause

hower

Mr.

welfare state in many small bits

long-range scheme.

stopped,

man

would

fiscal outlook, for the Adminis¬

rapid rate.

indicate

■

belief unique among bills of
goods sold in politics, that be-f

continue

this

because

conservatives
justified.;
V,.

at such

out

came

of the Republican

only
$1%
billion
because
all the
while spending was increasing
surplus

such

over /the-

magic

have

things that

A House group

that the White
of appealing for

and

er's

■

group

sonal tax cut.

was

key out of the polls and defeat
Mr.
Eisenhower,
the
latter
would be "repudiated by the
yoters," This would be the sec¬
ond "revolution" following a
Stevenson election. Eisenhow-

is trying to con¬
jure a package whereby oil de¬
pletion allowances and other
depletion allowances will be
cut, and Other attacks Will be
made
on
legal escapes from
high surtaxes through the cap¬
ital gains, tax rate, to provide
offsetting, revenues for a per¬

control
or
bare loss of control of Congress.
This would convince the White
House that its welfare approach

Congress,

Steven¬
be ex¬

be because a

cut it will

tax

House

hand,

other

Stevenson should make a mon¬

probably would be forgotten is
the promise of a bpost of $200
in the personal income tax ex¬
emptions. If the Democrats have

Republican

House strategy

the

of-

had

Republican Change

Doubt Tax Cut

the first

these practical real¬
politics, there exists
among" American; business men

ities

all

an economy now

would

fool.

file of Congress comes not be-

One

;

pro¬

with

With

President

;

hower is

Federal Government of Canada
—the

welfare

large

em¬

upset that

dedicated

the

cayse.

' -! Assume that Mr. Eisen¬

the latest official esti¬
are
correct, which they

responsi¬

with

monkeying

for

mflate.

billion-dollar

on a

love over-full

people

purposeful monetary infla¬
tion or bearing down on busi¬
ness expansion, than would any
one else, unless he proves to be

tremely chary of spilling the
apples all over the pavement.
If the economy ever slips, Eisenhower's boys are themselves
on record as ready to spend and

ing programs was more pleasing
to the public than the Demo¬
cratic program of big, grand,
commitments

...

sional opposition, a Mr.

pects for action on fiscal policy,
but the attitude of some .people»

"drastic"

Stevenson, knowing that

Agoing at a tilt which only does
not please Leon Keyserling be¬
cause he is part of the profes¬

Election Would Change

the

Stevenson should be

economy.

However

Mir.
the

Psychological Aspect
Outside

ployment at rising wages, prob¬

tration would become

Mr. Eisenhower.

over

dent.

elect¬
ed, two revolutions would im¬
mediately happen. In the first
place the Democratic Adminis¬

-Hence it is

President

million—as

stances made it popular.

Dwight Eisenhower were Presi¬

ably would

lions

self in the

the

Eisen¬

that

bet

legislation if time and circum¬

dip!"

padded mat—he keels over on every

comes.

ing programs in the last Con¬
gress.;/;;

Eisen¬
publicly committed him¬

revenues

business V minded Republicans
whose sole objective was to pro¬
tect theTilthy rich in/the enjoy¬
ment of
their billionaire in¬

Republicans

outpromised

in. their

planks is for sound money
balanced budget. In 1952

the

would

gress

hower, would, oppose regulatory-

the
Republicans
magnificent assistance The latter

have had

hower

by Democrats .covertly in the
Senate',, with some important
Republican help.

Stevenson

and

penditures.

proposed Federal incorporation
law. This was finally throttled

from the Democrats.

current Republic

of the

One

American
business
rivaling
even Senator Joe O'Mahoney's

no surprise if mil¬
of conservatives come to
believe-1 h a i there is a worse
alternative, from the fiscal
■*:
viewpoint, in the election of Mr.
•: : • ri7"

Both

can

given the Federal Trade Com¬
the Department of
Justice a great: power to both
throttle and direct the course of ;

millions,

mission and

selling this rationalization

In
-

parties are committed,
spending as such, but to
enlarging responsibilities which
are
expresssed almost invari•

not to

;

such as aid

worse.";

;* "» ""

•

dominates
the whole cost pattern of busiaiess and investment. In fact, it
impinges almost inimitably on
the economy. Not the least of its
implications is whether longran
investments repayable by
contract in a fixed number of
dollars shall have substantive
purchasing power at maturity.

Capehart.

sent to the Hill
this
year
with
White House
blessing, the "pre-merger noti¬

Congress next year,

also

policy

Fiscal

conserv¬

out over the Demo¬

won

crats and

for
school construction, more
Federal policy
health aids, and so on.
which more completely domi¬
nates business and investment is : r
"They Are Worse"
fiscal. Fiscal policy determines
\
In the process of switching,
what hope, if indeed there is
from an attempt to restrain the
any at all, that there shall be an
growth of Federal spending-to
end of ever-rising Federal ex-outright acceptance of the need
penditures and an ever-rising
for higher spending, the Eisen¬
lax burden, direct and indirect.
hower Administration sincerely
Already the fruits of business,
rationalizes its position by say¬
investment, and professional in- fei
ing "the other fellows would be
come have been socialized in a

startling measure.

Senator Capehart
controls enter¬

the sidelines until the

bal¬

the

Probably

1953

Democrats

into his standby

is ...replete;

Administration.

the Federal

.with
uo-enacted
spending proposals to be re¬
newed by the White House to

what political £arty or par-.*,
ties the volers in November vest
of

ivlth" control

the

steamed

Eisenhower Adminis¬
is re-elected, the record

ancing"

...

when

economy

if the "pro-budget

Eyen

live

the

American

reg^itlless

on,

year

premise that the
will always
raise
the ante to
meet next
f ^ year's rising instalhiehts." "
ing

enjoyed

paradoxical reputation for be¬
ing opposed to Federal regula¬
tion of business, despite his rec¬
ords His
record
showed that,.;

cost

all

the

living,

billion

would
dollar

goodies to the people that were
denied
by
the" heart-hearted,
.

...

FOREIGN

SECURITIES

50 BROAD STREET
TEL:

HANOVER 2-00S0

•

SPECIALISTS

NEW YORK 4. N. Y.

TELETYPE NY 1-971

lerner & co.
v

•-

Investment 'Securities

10 Post Office
pi<i

jipiifamj.'••ff

•

IV->*«.<£»

Square, Boston 9, Mass.

Telephone
HUbbartf 2-1990

Teletype
\ BS 69

Full text of Commercial and Financial Chronicle : September 20, 1956, Vol. 184, No. 5570

FRASER