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CANADIAN INVESTMENT
OPPORTUNITIES
FEATURED
SEP 30
SINESS'AOfflN/sr^
Volume 18(>
Number 5676
New York 7, N.
Y., Thursday, September 26; 1957
\
'
i
J
•
r
>
"
.
EDITORIAL
'
Price 40 Cents
>
Great Issues in Canadian
As We See It
?
—U.S.A.
With prices,
particularly consumer prices, per¬
sistently rising, "inflation" has become an "issue"
not only in
politics in the narrower sense of the
but in the
term,
conversations
acquaintances wherever two
or
together. In these circumstances
that
a
"who
killed
of
three
it
friends
are
was
and
the
politicians
more
inevitable
convince
ing to these
not ask
so
-
There
that
easy reasoners, is for these
groups to become
grasping
public spirited and
their products.
little
a
much for
_
economic and defense
will
the
be
full
:
.
agreement
stitutes
more
This
more
measures.
more.
Other
brought to the attention of
time to time,
gain
some
alleged
man,
sort of
this, that
advantage from laying blame
tion.
tionary troubles in
some
one
other than himself
Continued
on
page
38
monwealth
cash
dividend
alliance
—
Also giving
,
.
.
.
•
v
'•
has
most
is, of
omy
for
\
:
#
.
'
free¬
its
as
only
everywhere in the world. 1
of
1
f
edition
the Canadian
on
econ-i
course,
of
Prime
to the
'Aftbr
21;
of Liberal direction of its affairs,
latterly:
distinguished leadership of Premier St.
Laurent, a great conservative political
swing
emerged, resulting (1-) in the election of Mr. Die--
years
under the
fenbaker,(2)
(3)
free--
closer orientation to England, and
a
a new accent of
have
ment of Canada's vast natural
resources,,
to
*
States
While
the
develop-
Frankly
;
t
Continued
.
A
9/?
on page 26
we
welcome and salute this
|
;t ? t
adf
ministration and this fresh executive
look; at the
direction and
development of Canada's fabulous
and enviable
enterprise economy. No democracy
benefits from sustained and uninterrupted control
by one
wing of its
,jt
^
Or left; and in much the Same
Way aS a
Commonwealth
-
,
new
.eiectorate)t'be
♦An address by Mr. Diefenbaker before
the Dartmouth Convocation on Great Issues in the
Anglo-Canadian-Americai\ Community,
Darthmouth College,
Hanover, New Hampshire, Sept. 7, 1957.
SWUlg
A
fn
on
071
page 2U
State, Municipal
and
m
■
j
Continued
.
Public
COPIES OF OCR
;
Housing Agency
-Bonds and Notes
'
"market review''
FOREIGN
\.
LETTER
Request
on
'
:
.
ON
AVAILABLE
Burnham and Company
■
-
*
•
.
Members
•'
i
...
'
•
'
•
014-1400
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TettrVfE NV 1-2003
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Net
To
T. L.WATSON SlCO.
Active
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Dealers,
Banks
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York
Stock
Exchange
BROADWAY, NEW YORK 6
offices
from
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BONDS & STOCKS
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DIRECT
NEW YORK 4, N. Y.
Exchanges
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Depart)
&
Co.:
MEMBERS NEW YORK STOCK EXCHANGE
115 BROADWAY
BANK
(Municipal Bond
MONTREAL AND TORONTO
Goodbody
COMPANY
„
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Chase Manhattan
DEPARTMENT
Teletype NY 1-2270
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for
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SECURITIES
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coast
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and Brokers
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THE FIRST NATIONAL CITY BANK
15 BROAD STREET, NEW YORK 5, N.Y.
.
,
ARE NOW
'
Available
"f
it
our
My
United
~
"
,
important single change since
2S£
CABLE: COBURNHAM
FIRST
j
•
.
apprehension upon the extent
which American
capital had made, and was
making, inroads on the ownership aricL
and*1 the
\
BANK
BANK AND
1
,
JohrrGeorge Diefenbaker
cer- 1
dom
survival
a;
;
-
.
Minister of' Canada.
\
CHEMICAL
30 BROAD ST., N.Y.
;
,
office
I
hope for the
.8*
years,;
of The Honorable
"built-in"
IIAnover 2-3700
department
125
of
Red Menace.
Municipal
CORN EXCHANGE
bond
than
of
Securities
telethone:
more
*
in
.
time to the broad
the switch from Liberal to
Tory government, and fn particular, the
accession^
con-
U. S. Government,
Stale and
some
securities, with uninterrupted
LONG-TERM CANADIAN CASH DIVIDEND
PAYERS—An integral feature of the cover
page,
article "Canada: A Conservative
Viewpoint, Coupled With a Dynamic Economy," are the tables
showing Canadian listed stocks on which consecutive cash
dividends have been paid up to 129
years.
DEALERS
s
her politics, her progress
solid and dependable economy.'
,
last semi-annual
for
.«»
■
payments
present
Community
«
uniquely providing income and prospects for gain iu
•
The
tain
Republic.-
a
..
f
list of mature Canadian
revolution—by its adherence to alimited monarchy within the Com¬
Nations, rather than, through the estab¬
of
of
••
Enterprise Economist.
'■
'
and her prosperity.
;
grown up1 in separate ways.
country achieved its freedom
and independence
by evolution, not
lishment
IB
An autumn look at Canada
unswerving
Canada
to
or
•
'
,
dedication to
believe that the mainte¬
of that unity is the
nance
the public from
the other group in the popula¬
Everyone finds the cause of current infla¬
upon
an
freedom.
causes
mostly by individuals who wish
alliance
ft
I*
....
By DR. IRA U. COBLEIGH
*
those
among
grand
a
•'
■*
'
stabilizers for unity a common tra¬
dition, a respect for the -rights of
part of the blame for current infla¬
tion and the threat of
are
"
'
.
in
dom, in partnership with others
the NATO
family, in the defense
employers to raise prices. To many, if not most
of us, it
appears plain that continued government
spending on an almost astronomical scale must
a
"
-
f
Anglo-Canadian-American
merit, find that wage
earners organized in
monopolistic groups by forc¬
ing wages and other labor costs up have obliged
take at least
*.
.f
i
democracy against the
Others, with much
•
•>
Canadians, and pleads for equal cooperativeness
public that "greed" among businessmen, and
specially ampng "big businessmen," is the culprit.
situation, accord¬
•;
*.-
the interests of Canadians.
Observes not more than one
out of four U. S. controlled
firms offers stock.to
the
All that is
necessary to cure the
•
:
radically minded of
tire of trying to
never
;•
>•
praising friendship and cooperation Mi by the iwo
countries and
noting each is each other's greatest cus¬
tomer, Mr. Diefenbaker proceeds to take
umbrage at our: <
(1) restrictive trade policies; (2) agricultural
export ;
subsidies, barter deals and foreign currency
sales; and - "
(3) failure of U. S. investments in Canada to consider
gathered
cocl^robin" debate should
of the
<
Canadian Prime Minister discusses U. S.
induced economic problems of utmost concern
to Canada.
After
one wishes to take
responsibility for
"inflation," and many hope to gain something
by pinning blame on some one else. The labor
some
Viewpoint, Conpled With
A Dynamic
Economy
r
develop. No
unions and
Community
.
'
Copy;
Canada: A Conservative
By HON. JOHN G.
DIEFENBAKER, M.P.V
7
"Frime Minister of Canada \
!
'
a
*
1 NORTH LA SALLE ST.
CHICAGO
"
Grporaxkxs
•
40 Exchange Place, New York
5, N.Y
Teletype NY 1-702-3
WHitehall 4-8161
I
ft*
<w-
>•
The Commercial and Financial Chronicle
\
.
Thursday, September 26,1957
...
2.,.,(1318)
The
Brokers, Dealers only
For Banks,
puts
system
markets, in more
Security Analyst
v
offer you
v
XT
.
o
i
w
,
and Other Leading
C1lhllvhnn
its suburban
Exchanges
is
Brothers
fifth
the
Corporation
,>
York
120 Broadway, New
various
vcuiuus
•
CHICAGO
PHILADELPHIA
•
SAN FRANCISCO
?otaai
nWs
The
the
prtipc
soft
than
anv
«fnrp
ments
ivieniDers
othpr
main
Exchange
BROADWAY, NEW YORK 5
provements
were
books
gross
million
Trading Markets
a
at
and
Inc.
fact
of
carried on the
value of $75 6
after
net value
a
Alabama-Tennessee Natural
Scott, Horner & Co.
Lynchburg, Va.
Call
informatio»7«»w
or
write
Yamaichi/
Securities Company
of
New
York,. Inc.
.
..
Tokyo, Japan
Brokers
&
111 Broadway, N.Y. 6
<
Bankers
Investment
Since 1932
.
COrtlandt 7-5680
Specialists in
*
: *
VIRGINIA—WEST VIRGINIA
and SOUTH
NORTH
CAROLINA
MUNICIPAL BONDS
■F. W.-
CRAIGIE 8 CO.
RICHMOND, VIRGINIA
Bell System
f
-
Teletype: RH 83 & 84
TeleDhone
3-9137
its future
for
,
0
zation consists of
initiated in*or third year of operation can 36 represents a relatively deflated
largely responsible earn as much as 7% on sales be- area for Sylvania Electric. The
decline re¬
trend in operat-, fore
taxes, after absorbing its
flected largely
ing results evident during the past share of downtown store expense,
the less favorthree years. To date the company and this compares with an average
able
condi¬
has
opened eleven, new, subur- pretax margin of 3.6% for Gimbel
tions in the
ban or branch stores, including in 1953 and 1954 before the curtelevision
in¬
four units in the current fiscal rent expansion program was industry which
year, with
1,400,000 square feet augurated. Some further improvecontributed to
of floor space and an estimated ment in profit margins, which are
downtrend in
sales potential cf about $85 mil- still among the lowest in the deSylvan i a's
lion annually. The
units added partment store field, could also
earnings.
this year include the first branch result from the company's conEarnings, last
of
Gimbel's Pittsburgh store in tinuing efforts to reduce operating
branch store
program
1954 has been
LD 33
Tele. LY 62
only
financing requirements,
Colony Life Insurance Co.
stocks
For current
long-term beneficial effect on the over-all
ATiriTST witrfr
Capitali- profit margins of major depart--. - •
* IT T, , _
1,954,000 shares ment stores, these sales increments Spencer Trask & Co., New York City
of
common
stock, preceded by should be accompanied by an even sylvania Electric Products
107,137 shares of $4.50 preferred greater increase in net income. It
*
■.
.
.
■_
and $54,912,000 of long-term debt, has been estimated that a successFrom a high of about 56 last
Gimbel Brothers' ambitious ful suburban store in its second year, the present price of around
ranging
Gas Company
First
en-
$2 million in
mortgage debt allows the company
some degree
of flexibility in arby
japanese
I am hopeful they will, it seems
striking results in the past two have been out of favor for some
this period sales have time and are at present accorded
increased 21% while net income rather modest price earnings mulbas "sen 47%. An extension of tiples, I consider Gimbel one of
these gains over the next two or the most attractive situations in
three years is indicated, provided this group. Its speculative quality
consumer disposable income, the appears fully recognized, if not
major determinant of retail sales, actually over discounted by the
remains at present high levels, in- market's evaluation of its current
asmuch as additional volume and earnings and dividend prospects,
profits will certainly be obtained With further gains a distinct posfroin the stores recently opened, as sibility during the next year or
well as from the Milwaukee unit two, the shares at recent levels
scheduled for completion m 1958. around 26 appear attractive, on a
/Since a rising proportion of businessman s risk basis, for genbranch store volume in relation erous income' and moderate appreLo total sales has generally had a ciation oyer the intermediate term,
Saks-
this property is
that all
cumbered
Bank of Virginia
..
Wlth respect to dividends, it is
?'ears-
depreciation of $43.2 million. The
Air Control Products,
ad<d^tional long-
..
Yamaichi Securities Co., Ltd.
to
free
branch offices
probable that the old $2 rate will
owned in
practically
are
our
ambitious program of sub-
pay-
smaller
the
fee
at
apital. Whi]te
instituted a number
anges designed to secure greater
Gimbel's common stock amounted
cnanges aesigneci xo secure gieairn
nor sharp
operational efficiency.
These to ^y.dD per snare,
measures have produced rather
While department store stocks
thp
to
Affiliate of
mortgage debt. As of Jan. 31,1957,
land
buildings and building im-
TEL. REctor 2-781S
Mobile, Ala.
Direct wires
be restored before too long. As
of internal of Jan. 31, 1957, the book value of
de-
-
N. Y.
NY 1-1557
HAnover 2-0700
the company's work-
increase in
one
^an fCe rvelopmcnTand also
relative
units
are
.
New Orleans, La.-Birmingham, Ala.
PvS? ndf, u
* satistactorv
tllcr? will be a satistactoiy
.
Sales vol-
had
C°m~
rental
Fifth Avenue
and
.
operating
rating, the management embarked
with
rhnin
Annual
of
number
a
York Stock Exchange
..
i'ni,
continue to improve thereafter, as
comparable organizations,
four main Gimbel stores, and
The
nmifinfinne
l
a
f. maf be ne^ssau
fr0.m timb toftime to meJ3.t thf r9"
<iuirements of an expanding busincss' 110 sale of e^uity securities
Gimbel
imnressive
19 Rector St., New York 9,
$43.8 mil-
were
|lmir
competitive position was deterio-
those of
mcdonnell & fa
.
iuPrto
ac-
lareer
larger
a
a
owns
owns
quite low
are
1955
to
nocb
.
..
slightly,
despite
the
branches in outlying
least
TV/Txr
while
lowest in the industry. However, payment, to perhaps $1.80 per
e
, years ago snarked bv the share will be forthcoming at the
several years ag^ sparKea Dy uic
should results
realization that Gimbel's over-all Beginningor wou. bnouia results
and
%
sa OS
result that its
120
nriced
comDanv
company
nartmpnt
stores
areas.
the
J
i«
during the
the dollar volume
nartment storG chains
proportion of its retail store prop-
Since 1917
of
n6CGSS3rilj
cash,
in
ume
It is believed that the
York
Specialists in
Stock
a
v!,T riX
City S,,™
units alone
w™
New
American
Members American Stock Exchange
million
?i.oXds o" anXo< tTe mTo; ^ is P^ently contemplated,
Gimbel
Gimoei
broad
handle
oonular
of
line
hard eoods
Steiner, Rouse & Co.
(Page 2)
City.
actually decreased in the my belief that if the earnings I
S ieet scllfsim- Period
from 1947 to 1954 and l0°5 f,0r.matenallze f*8 year> a
in a lower price Profit margins were among the modest increase
in the annual
flar merchanchse
cla«Kdon
while^
classmcation,
wnue the
tne
stores
Au¬
Members New York Stock Exchange
$8.4
ing
Indeed,
p;muei'e
Prior
of
country.
vwunnj.
the
tuc
01
34th
Saks
Brothers
RIGHTS & SCRIP
New
f^er^f1 fa^Mon11^n d^uahty^soft
goods
Cities
Wires to Principal
New
of
parts
pctika
4
BOSTON
Private
Street,
one
York 5
Teletype NY 1-40
WOrth 4-2300
Saks-Fifth
13
Exchange
opening
residential
branch and
Avenue stores in
with
City,
Xt
increased
suburban branch
seven
Saks-34th
stores;
Member
Stock
if
not
suburban
when
past few years
with
Milwaukee,
and
total of
a
Established 1920
Associate
Co., New York
to
volume
the
that
dO0S
opened.
are
the large Gimbel stores
in New York City, Philadelphia,
Pittsburgh
units
decrease
operates
New York Hanseatic
—
to
current liabilities
largest department store chain in
the United States. The company
American
F.vnprioneo
Experience
stnrps
stores.
indicates
date
town
Gimbel
Bought—Sold—Quoted
„
gust Huber, of Spencer Trask &
Gimbel Brothers Inc.
want.
Louisiana Securities
H.
proximately 25% cf its sales from
i
New York Stock Exchange
Members
the bid
chances of finding
or
,r
Wm.
—
Sylvania Electric Products
uiod to opeil iU such time Gimbtl brothers Inc. will derive ap-
.
Ahrabuin & Co., New York City
places—enhancing your
(Page 2)
sched-
in the Milwaukee area is
Inc.
David, Security Analyst, Abra¬
ham
&
Co., New York City.
are not intended to be, nor
offer to sell the securities discussed.)
as an
WM. II. DAVID
Over-the-
touch with more
Counter
they to be regarded,
Brothers
Gimbel
(The articles contained in this forum
are
in
you
Alabama &
Their Selections
week, a different group of experts
field from all sections of the country
participate and give their reasons for favoring a particular security.
In the investment and advisory
private
nationwide
Our
wire
Participants and
Forum
A continuous forum in which, each
Try "HANSEATIC"
Week's
This
Security I Like Best
for the improved
Opportunities Unlimited
IN JAPAN
Write
for
our
Monthly
Stock
other reports
that give you a pretty clear
picture of the Japanese
economy as a whole.
Digest, and
our
the North
NomuraSecurities Co., Ltd.
61 Broadway, New York
6, N. Yr.
Telephone: BOwling Green 9-0187
This
is
not
orders
offer
an
for
any
or
solicitation
for
particular securities
the
Hills Shopping
branch
second
of the
Center,
expenses
Gimbel
more
third
a
in
Gimbel's
New
unit
York
Bayshore, Long Island, and
Saks-Fifth
Avenue
Snrinefield.
Springfield,
New
New
.Tersev
Jersey.
a
in
branch
fall
on
Salt Lake Stock
Exchange
440,000 square
feet of floor space and have an
estimated
sales potential of
year-end
^
Air
when
a
Guardian Chemical
Magnolia Park Racing
Interim
Results
6 Mos.
7/31/57
6 Mos. 7/31/56
•
1
Stock
vvexe
were
jiiiuiuu,
place
to
advertisement in
it
that
"
per
share is
j
probaply im-
liKeiy, basea.
11KeiY'
°asea on
r<
Around 36, the stock is
„
THE COMMERCIAL
FINANCIAL
Jtimfted learning® while'The
Exchange)
Exchange PI., Jersey City, N. J.
iiiciuu
Approx,
Profit
Net Income
(Millions)
Margins
(Millions)
$162.1
2.2f/o
152.2,,
Earn.
Price
P/S
Dividends
'$1.7
$0.75
$0.80
1.4
0.60
0.70
1.9
Range
25
Park
AND
CHRONICLE
Place, New
York 7
laESSggagSB
prospects 0f encouraging
the next few years-
over
long-term earnings
share—I would
regard the stock as an attractive
semi-speculative commitment at
p r o
j
e c
around
te d
$6.00
Sylvania
I
$350.9
4.4 %
$7.6
$3.60
$1.40
31-23
325.0
4.2
6.7
43.16
1.10
30-20
1954
290.0
3.6
5.1
2.34
1.00
21-13
1953
286.4
3.6
5.2
2.35
1.00
17-13
1952
291.7
3.3
4.8
2.14
1.00
18-15
s
the
per
>
is
the
largest
third
producer of electric lights (incan¬
descent and fluorescent),
second
largest manufacturer of television
tubes, and
1951
298.5
2.6
3.7
1.59
1.00
25-17
picture
Teletype JCY 119
1950
291.1
4.4
7.1
3.31
1.00
22-14
ducer
of
N. Y. Telephone Dlgby 9-3424
Direct private wire to Salt Lake
City
i: 49
280.8
3.6
6.2
2.80
1.00
17-12'
1948
307.3
4.8
8.9
4.17
2.00
25-17!
tubes,
television
1947
301.2
3.6
6.2
2.80
2.00
32-18
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
this time.
Following
1955
and
growth
Pretax
Net Sales
Calendar Year
CAPPER & CO.
Lake
your
smart
$3.50
^
Yr. Enci 1/31
1956
Salt
it's
So
..
Gimbel Brothers—Sales and Earnings
of
(Members
am
around
tluDei
of approximately $4 per share.
regular $2.00 dividend rate pro49^7 Gimbel's vides a satisfactory yield of 51//2%.
c
-
Reeves Soundcraft
,•
adjustment, "I
securing new customers.'
year
appears
August
and
hood of $380 milliion and earnings
second
Holiday Oil & Gas
•
Lifo
in
p,.«gugjxSfffiSSSSS J^-ffSSStiSSttS
large branch store assets
$121.7 million, includcurrent price level
Springs
TWIT Trailer
•
com-
business,
This
looking for sales in the neighbor-
over
$26 million annually. The present
expansion program will be
Christmas
the
an
nnncnQllv
the nhsenoe
absence nf
of an
unusually lawn
large
These
These
four stores contain
Orders Executed
and
were
of
is
$4.10 per share.
merchandising
techniques and the modernization
of existing physical facilities. For
the current year, assuming good
Philadelphia store at Upper Darby,
year
through the adoption of
effective
one.
the most useful tools
Advertising
major pro¬
a
and
television
radio
18-Year Performance
35 Industrial
FOLDER ON
of
Stocks
REQUEST
National Quotation Bureau
Incorporated
and
Continued
radio
on
sets,
page
53
46 Front Street
New Ywk 4,N-Y.
Volume 186
Number 5676
.
The Commercial and Financial Chronicle
.
.
(1319)
The Role of
INDEX
Banking in
Expanding Economy
An
Article starting
areas,
nor
banking.
I
have
in
more
often
and
can
in
my
mind the pros and cons of a decentralized banking system. I have
seen
the
thoroughly integrated
systems of
Europe and
other parts
the'world
—
nation wide
Exchanges which
Articles and News
Don't
sys-
and
Great Issues in Canadian:
U. S. A.
—Hon. John G. Diefenbaker
Local,
4
a
highly
c e n
-
•ities.
I
have
tried
to
bal-
The Role of
—John
J.
Banking in
an
'
'
— —
*
—
Bankers Now Concerned Over
Deflation and "Tight"
Money
—A. Wilfred May
—_
their
ance
advantages
as
system
and the whole
Jobn
J.
McCloy
concept
of
banks,
state
We
have
laws
their
come
in
nation
the
flowed
to
of
banks,
covered
I
as
appeared, in
ever
a
state
have
needs
have
with
variety
variegated
as
banking
has
our
services
wide and
-of
wide
a
governing
and
as
had
field
a
suppose
history.
I
the conclusion that
vast
as
varied
as
forces
and
ours
that
have
L——ii—
___—,
over
our
it
is
have
important
idea
some
heading
as
we
then
of
that'
where
ponder
we
many
vicissi-
tudes has grown in strength
the years, is the strongest
dence of its essential
-
Today,
about
plex
however,-
us
grows
and, the
evi-
vitality.
the world
as
ever
over
more
com-
Ready for the Next Step on the Farm
Policy Debate
—Hon. Ezra Taft
Benson_r
'
The
one-third, and loans have
more
than tripled, and yet the
Revolutionary Changes Ahead
tional,
-
it
well as local, needsjf
to hold its own, quite
apart
is
from
as
question
any
growth and
increasing
tioni
of
its
expansion.
iurther
The-
ever
the
na-
demands -of
s
and
whatever
desirable
when
what
and
look
we
the
for
,
ask
/ Bank
We all
future.
might be, we come up with some
very revealing answers.
A. key;.
question at the outset of course"
js ^ow much bank deposits' are
»A
are
that it is not
aware
,.
irS? Na!
c',s,:,ps?prr9". 1st?"
*
other
recourse
I
(Editorial)
Insurance
.
on
have specialized in
Mutual
Wilfred
Our Reporter
Governments-—.
on
Our Reporter's
Public
Utility
Railroad
*■>
Prospective
•
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49
Universal Transistor*
16
Narda Microwave*
2
^
,1
1
Sulphur
"
25
Park
DANA
c/o
Gardens,
£
C
•
Eng
Reentered
as
York 7, N. Y.
Subscription
Thursday, September 26, 1987
*
second-class matter Febru¬
Sulphur
Prospectus
on
Request
25,. 1942, at the post office at Nen
York, N. Y., under the Act of March 8, 1879
RBctor 2-9570 to 9576
WILLIAM DANA SEIBERT, President
Gulf
••
ary
Subscriptions
HERBERT D. SEIBERT, Editor A Publisher
,
London
Edwards di Smith
Copyright 1957 by William B. Dana
Company
COMPANY, Publishers
Place, New
Diapers
land,
■
Pan American
56
In
8tates,
'
r
Dominion
of
Canada,
W* V. FRANKEL & CO
Rates
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Possessions.
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and
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8.
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Boston
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53
FINANCIAL CHRONICLE
Members New York Stock
Exchange
•
Radorock Resources
35
*
You—By Wallace Streete
'
Nashville
Federal Uranium
40
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B.
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£
,*
,
I
The Security 1 Like Best
Spencer Trask & Co.
Albany
,
Securities Salesman's Corner
38
'
to
Los Angelas
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c
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Security Offerings
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52
WILLIAM
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Activity
Published Twice Weekly
For many years we
19
—
9
News About Banks and Bankers
,
business
page
—_—„
News—Carlisle Bargeron
Washington and You
Continued
t Report
Cover
—
forced
the
Electronic Research
Assoc.1
—51
—
Stocks—
The State of Trade and
Industry*
and
TMT Traitor Ferry
—
these circumstances but to retard
the growth of deposits.
They have
banks
Pacific Uranium
25
—
(Boxed)
Over the past
From Washington Ahead of
the
severai years deposits in
comtner-,
.* Indications of
cial banks have not increased to
Current Business
no
Sylvanite Goldf
*
Coming Events in the Investment Field—
Dealer-Broker Investment Recommendations
Einzig: "Britain's Defense of the Pound
Assures No Sterling
Devaluation"
n^ely to increase.
had
Living Style
29
*
Business Man's Bookshelf—
growth of banks and bank services
have
'
and
further
Teletype: SU 155
23
*
As We See It
1160
Exchange PL, Salt Lake City
DAvis 8-8786
Regular features
'
near
39
——
30
"The Menace of Inflation"
Subject of Study by Marcus Nadler 31
Krushchev's Worries
HEndereon 4-8504
Teletype: JCY
19
Service——.L..——
economy for
appropriate
any great degree — particularly
credit constitute a
mighty.- thai-' jjgmand
deposits
in 1 banks
of
lenge to the system. '
major cities. There is a tendency
I know that I. cannot here
.deal to project this
experience of the
exhaustively or even adequately recent past into the
future. To do'
with the subject I have
chosen, so for commercial banks as' a
but I would like to review with
whole, in my opinion, is a misyou some of the problems which
take.
We forget
that we have
confront banks,
particularly state been living in an unusual
period
banks, today in the light of. our —a period when the
economy has
expanding economy; and I want been
operating at a boom level,
te
try to foresee some of the with inflation a
persistent probchanges which are likely to arise lem.
The
monetary authorities
in the
Exchange PL, Jersey City
Canada's Prosperous Oil and Gas Future
Discussed by
George H. Sellers and Alexander G.
Bailey—-
necessary,
ahead'and
potential
Spokane Stock Exchange
y
*
constructively
changes are
even
Members Salt Lake City Stock Exck.
16
Moderate Business Upturn in Months
Ahead Forecast by
United Business
role in the economy than I think
is
J.F.Re31y&Co., Inc.
14
L
*
necessary. It is certain that unless
we
do
commercial
banks
are
bound to play a less significant'
AMERICAN
6
,
in the American
—Roger W. Babson
American economy in certain respects threatens to outdistance its
banks.
We have reached a
make
5
Transportation—Anthony Arpaia—
*
by
B.
DIgby 4-4970
Philosophy of
Economic Aspects of Canadian and
American Cooperation
v
.—John Wesley Jones——..
a
&
MACHINERY
1
substantial growth in the postwar
period — deposits have increased
to
H.
"
many ways banking today stands
at a crossroads.
It has
enjoyed
TMT TRAILER
(f 13
Orrick, Jr
are
the prob-
4
10
The New Mature
Economy and the New Inflation
—John R.
Bunting, Jr.____
tendency. towards
centralisation increases, it is quite
apparent that the state
system
must give evidence of an alertness and imagination to meet na-
_.
Obligations of the SEC—Commissioner
A. D.
$
we
CHEMICAL
Passenger Defieit Is No Phantom—E. C.
Nickerson—
11
Development of Gold by U. S.f
Monetary Policy—Franz Pick— 12
■<
lems that face banking at the moment and the steps that should
be taken to deal with them.
In
courageously
rally, and through
*
element of
3
4
Outlook for Chemical
Sales—John O. Logan*-—..
;;
wide geography,
stage
we could
never have progressed
where
bankers and supervisory
as
far as we have without our.
authorities must constantly take
system of state banks.
The fact stock of the
position and move
that the system developed natu-
.
;
re-
weakness in the face of the present day pace of banking needs. >
against '/ our
dual
an
some
CHEMICAL
HYDROCARBON
■
know, it is not easy to
United Aircraft: Jet
Propelled—Ira U. Cobleigh
organizational
chang e s
The Interest Rate Outlook
within banks themselves. Thel'e is':
and Equity Capital
Encouragement
a fundamental conservatism that '
jV —Aubrey G. Lanston___
runs through
all thinking in reInvestor Prospects in
Banking—Morris A. Schapiro.
gard to banks.
This 'element,- a
in
4-6551
CORNERS URANIUM
Expanding Economy
v
all
strength
spects, may become
the
Cover
make
of
on
for cash!
us
WALL STREET, NEW YORK
GUARDIAN
Community
McCloy
■'
all tend to make statutory changes
uncertain and difficult.
Moreover,
factor
obsoletes
.
Cover
.
___
tralized activ-
your
-Bring-them to
Page
Canada: A Conservative
Viewpoint, Coupled With
Dynamic Economy—Ira U.
Cobleigh—
_,
banking
terns,
throw
pavement.
.
interests, selfish interests, and the
great variety of opinions in respect to the subject of banking
we
TODAY?
banks
have paid
Telephone: WHitehall
that
as
the
\
to carry through changes in
of
Canadian
of docu¬
way
of
-
laws
banking.
the
by
tabulation
a
99
;
easy
govern
011
1
DID YOU MAKE
consecutive cash dividends from TO to
129 years (Table
I, page 21)
to 10 years
(Table II, page 35),
along with other data
of interest to investors.
keeping with traditional form of banking.
weighed
companies listed
Afo oomxtrt
WALL STREET DIRTY
and from 5
set up
Questions
apply to national banks, and
properly may cause banks to use Bank
Holding Company Act of 1956 as growth route rather than
the channel
opportunities inherent in Canadian securities
and,
needed that would end
state-wide
or
whether existing state laws
warns refusal to act
"Canada: A Conservative View¬
Dynamic Economy," discusses the
investment
a
cover page,
menting the views presented,- includes
possibilities, Mr. McCloy
unit banks in local
many
interestate
INVESTMEN^OPPORTUNITICS
the
on
point, Coupled With
Prominent N. Y. banker contends America is
growing and our
banks must be permitted to
grow with it.
In calling for an
attack on artificial restraints that
place banks in a strait
jacket which prevents natural growth
nationwide,
1
CANADIAN
Chairman, Board of Directors, The Chase Manhattan Bank
are
Lichtu
B.S.
By JOHN J. McCLOY*
does not suggest radical
changes
dual banking or
Schenectady
•
Worcester
3
Other Publications
Every Thursday (general news and ad» *
vertising Issue) and every Monday (com¬
Bank and Quotation
Record
plete statistical Issue—: market quotation
$40.00 per year.
(Foreign
records,
state
corporation
and
Other
city
news,
Offices:
Chicago 3.
HI.
Teletype NY 1-4040 & 4041
-
—
Monthly
postage
news,
etc.)
135
bank
South
clearings
Note—On
the
La
(Telephone STate
Salle
rate
of
account
of
exchange,
the
extra.)
fluctuations
remittances
for
in
for
St... eign subscriptions and advertisements must
2-0613);
be made in New York
funds
Direct
PHILADELPHIA
Wires to
t*
DENVER
SALT LAKE CITY
Chronicle
The Commercial and Financial
4
Thursday, September 26,1957
...
(1320)
and freight flights; and oil
are using heli¬
senger
Propelled
United Aircraft—let
U. COBLEIGII
By DR. IRA
reassuring look at our
engines and
following of fickle fashion by our
women folks, had hotter take an
corporate title.
As
occasional
look at ou
mm
WM
\
J|Pft
Z
III |1
"
'—
itself
finds
today
propulsion. Pratt and Whit¬
the incisive ney
is the largest division of
United
Aircraft, accounting for
V lopping of the
military above 70% of all 1956 sales. The
jet
engine
powers
eight
budget>
qufte J-57
Air Force
.i n si s tently series of -Navy and
decreed,
¥
'W
~1i
a n
their
d
;..
"
lr*
Looieigb
0
unit
retiring Secretary of Defense,
it has been the market fashion to
belittle and belabor the aircraft
our
So
stocks.
all
have
they
test
proven
long range guided
missile, the Snark, now in actual
production. A bigger jet unit, the
j-75, will propel the PCM of the
Navy, certain Air Force:units, and
nine out of ten of the big DC8's
and 707 airlines planes now on
order will rely on this same J-75.
A turboprop entry, the T-34, is
now
undergoing rapid develop¬
gone
down; and many have seemed to
act as sort of squadron leaders in
the dive-bombing division of the
market. Such blind
board room
bearish
acceptance of
fashions can,
however, be overdone. While the
cancellation of the Navajo had a
logical and perceptible
the fortunes of North
bombers
at
lor Aircraft,
just about as good as they
at much lower
United
prices.
ample.
Here's
a
major
a
in
which
equipment for
air-conditioning of aircraft.
The
third
division of UR is
the
,
with
Sikorsky, specialist in and largest
and most successful producer of,
sustained
of
record
terrific
gross
draulic pumps and
Aircraft, for ex¬
•"
company
United
produces propellers of all sorts
and
kinds,
gas-turbine
engine
starters
and
fuel controls,
hy¬
before—and
did
growth, of earning power, of en¬
gineering leadership, of produc¬ helicopters. Helicopters have re¬
tion
efficiency,
of
managerial quired a tremendous amount of
excellence,
tentment.
-Last,
Whereas
experimentation.
and
research
and stockholder con¬
Yet
its
common
is
it
total sales
has
the
of
billion,
the
.
with
of
percentage
-
expected
■to rise substantially. For the first
business
commercial
been
the fashion
i
a
level is
/.•
.
1
a
the
is
The forward march
quite
less-advertised
stood
$1.70/
at
This
But
As a result, cash distribu¬
tions have been increased during
per
share to
$3 regular dividend rate today;
there was a 20% stock divi¬
in
a
4Vz shares of United then held. So
stockholders
have
this
•
with
is
growth
bankers
the
to
Reserve
..
inflation
Within the past
there has emerged a
the
two-wayness of
for
a
bound to go up,
can
power,", can and will lull us to
sleep "as surely and as pleasantly
as
a
phenobarbital or a tran¬
quilizer."
V
Many others here, in reflecting
new two-way attitude toward
the
inflation, are going much further
in carrying reports of real con¬
cern
over the possibilities of de¬
Versus Treasury
Policy
and bond income
only go down in purchasing
Financing
flation.
Also
and
covered
...
wisely being anticipated. Per¬
haps
the Association's
contem¬
plated six-figure national adver¬
tising program will be effective
in including this goal.
characteristics, at a time/earnings
ratio of only 6 V2.
This is pretty
unusual when you consider how
well the dividend
.
is
industry, and
pronounced
■.
A. Wilfred May
knotty "public relations" problem
written, UR was trading
60, providing a 5% return
the $3 dividend and offering a
stock
a
ytMl
induced"
depres¬
sion which may be ahead.
This
was
market leader in its
of
progress
(even though they at heart were,
inclined to consign the needed de¬
flation
to
"the
other
fellow").
"monetarily
around
on
}ses-
.
interest¬
ascribed
treated
been
not only at the dividend
counter, but in market gain, with
UR rising from 11 V\ low in 1949
to a 1956 high of 96Vz. At the time
years'
how
long
the
money "weathering i storms
as
well as
"tightness" will last, how strongly sunshine," warns that reiterating
it will accelerate the now taken- the
formerly comforting sentiment
for-granted
business
recession, as "We are in a long-term infla¬
and on the responsibility publicly
tionary
period,
so
stocks
are
3-for-2 split /in
1955 and in 1954 a spin-off of 1 Vz
shares of Chance Vought for each
1951,
former
over
and
dend
at
12-month interval
realization of
the inflation
the interest rate would be "man¬
street, plus worry over the pros¬
aged" higher, and if so whether pects for de-flation. Thus, in dis¬
it would slow up the boom. Now,
cussing
investing
policy
here,
on
the
other
hand,
the
com¬ Benjamin Strong, President of the
munity's interest is revealed as United States Trust Company of
being concentrated
on
concern New York, stressing the need for
year.
$1.11
the
with
I
.,
$5.11 lor 1954, $7.06 for 1956 and
an
estimated $9 to $9.30 for this
a
question of "inflation-
sions the* bankers were concerned
ing. Previous.
'
ly speculation centered on whether
year
then, reaching $3.45 for 1952,
this period from
that
'/On
deflation,"
is
gnificant'
d
re¬
limiting bank loans to
year's level have caused some
additional qualms here. :
"
former
a n
has
figure
every
i
Britain's
last
years
s
with, the year 1948, per share net
then
quantitative
strictions
approach
of
makes
Beginning
record in itself.
a
the
in¬
of net
Aircraft
United
in
impact in
4%-andborrowing
and
And
here.
rates
j
(
six months," this segment of gross : further,: the.
advanced from $59 million in 1956,
veering of dis¬
to $93 million this year.
cussion f 1* 0 m
come
h6re to have exerted
rediscount
under
twin
t i on-Defla-:
tion."
seen
strong psychological
its dwarfing of our own
questions of
"tight money"
and '• "Infla-*
estimated to reach
are
and
c
n
-n a
com m u
This year, although
government.
$1.2
divisions
with
{ i
of UR business
86%
year
done
was-
business
.;v-:**' > I
for " about well,
1956, is - the
accounting
Hamilton Standard Division
versely interpreted earnings wise,
others were less affected and some
look
of
12%
be ad¬
Boeing could
of
division
second
A
American
cutback
the
and
Aviation,
ment.
bearing on
; ATLANTIC CITY, N. J. — This not "do the trick," at least bank" v "
Convention of the Ameri¬ wise;
Britain's raising of her discount
can
Bankers'* Association
high¬
rate
to
the
super-"crisis"
7%
lights
the * occupation ^ of
the
year's
tills division of aero¬
also the driving risen substantially in
most successful and since
for our
fested at this week's ABA Convention.
records, of its whirly-birds,
continue to lead apd to
prosper in
nautics.-
is
and
planes;
by
sponsored
.
Sharply changed attitude toward these twin questions mani¬
ily and Sikorsky, because of its
highly competitive pricing,* pro¬
gressive engineering, and the size,
and excellent flight and mainten¬
ance
"Tight" Money
By A. WILFRED MAY
should
Air¬
in • a
peculiarly favorable position. As
the
largest builder of aircraft,
-from
reason
and—logic
m engines, it pioneered in the design
and
large scale production of jet
the realms of
plants
and today
over
finance.
For power
.example, since three-fourths of all manned 1957
the austerity military craft — transports,
in the Penta- bombers or fighters—will rely on
and
Whitney engines for
g o n
was Pratt
'tStkWt
■
craft
r
'
matter of fact United
a
Deflation and
the lakes
of Venezuela. The use of helicop¬
ters seems to be expanding stead¬
in the Gulf of Mexico or
flights
own
'
reason
word
the
has
sadly neglected for
than because it
"Aircraft" in its
be
to
better
no
at
scoff
to
seems
males who are
the slavish
Those of us mere
inclined
rigs, „transporting, drilling
and technical personnel, to
drill
inaccessible areas, such as offshore
largest manufacturer of aircraft
propellers; and the largest and most successful
manufacturer of helicopters — United Aircraft Corporation.
A
copters increasingly for servicing
crews
Enterprise Economist
Bankers Now Concerned Over
drilling companies
underlying the departure
the
credit-squeeze
question
of
the
possibility that it may be in¬
creased.
(Policy has been, for
some
years, to pay out in cash
about 45% of net.)
from
the
area
of
extraneous
cussion is the concern
Mergers O. K.
The
dis¬
increasingly
bank merger
movement is
the green light in
high quarters. Erie Cocke, out¬
going ABA President who is to be
sworn
in as
a
Director of' the
still
getting
around that among other helicopter enter¬
manifested
over
the
Treasury's
Dodgers' prises to lean heavily on govern¬
real and pressing bond financing
ment
subsidy,
Sikorsky
has,
for
ball
park.
With a $2 billion
Now we may be in for a size¬ problems. The involvement of the
the most part, "gone it" alone. Its
FDIC
next
week,
gave
it his
backlog in orders, sales that for
able market price readjustment, a Reserve Board's "neutralist-tight
the first time will cross the bil¬ helicopters have achieved broad
blessing
in
a
press
interview
rolling
recession,
a short term dip, money" policy in the Treasury's
here. Incidentally, Mr. Cocke re¬
lion mark in 1957, indicated all- military acceptance for airborne
money-raising problem is exempli¬
or the prelude to a roaring infla¬
time per share net earnings of tactical units permitting swift and
ports
that
his institution, • the
getting
a
kicking
shouldn't happen to the
above $9, and
able
on
low level
the common avail¬
5% basis at the low of
a
advance of withdrawal
of forces.- In commerce
and indus¬
years—with all these try, Sikorsky helicopters are find¬
powerful points in its favor UR ing increasing use in civilian pasthe past two
If
tion.
in
we
stockholders,
like
columns
this
written
and/or
all
bored
be
since
uncertainties
then
would
go
New
un¬
ever
But
to treat with
probabilities,
have to rely on the time-
we
tested criteria of share values. For
Net
Banks—Brokers—Institutions
trading markets for
'
a
•
.
.
_
Chemical Corn Exchange
i....
Bank
Capital Stock and Rights (W. I.)
ment
present and indicated, should de¬
scribe a pronounced up curve; and
dividends likewise.
Gross earn¬
Hudson's Bay Oil and Gas
which
able
ideate,
and
perfect
market
would be amenable to the sugges¬
of
the
& Parsons, Inc.
seen
are
being
as
present 4% coupon would
BUFFALO, N. Y. —Bertram
Parsons
has
become
associated
with
Stevens,
Cornelius
&
Ellicott Square,
of Parsons & Company
which has
been dissolved.
t
and
profit¬
products. By such ac¬
cepted criteria for stock selection,
Aircraft
equity
of
to
seems
present
be
an
merit,
and
military
ex¬
Complete. Investment Service
future promise.
Even
Prospectuses on request
despite
UNDER WRITERS • BROKERS ♦'
the
OEALCRS■ DISTRIBUTORS '
J
■■
retrenchment, we're still
going to allocate $7 billion for the
pense
Air
"Specialists in Rights since 1917"
Force
and
year
Established
New York
120 Broadway,
Stock Exchange
JNew York 5, N. Y.
Telephone: REctor 2-7800
erable
If you
the $4
Stock Exchange—American
Teletype: NY 1-3489
1
V\
backlog
York—Detroit—Chicago
for
an
a
such
want to enter
a
consid¬
UR.
as
in the
more
Dean Witter
8c Co.
investor, here, perhaps
preferred, convertible into
shares
11/1/66,
of
may
UR
common
interest
Members
till
It's
you.
New York Stock Exchange • Pacific Coast Stock Exchange
Midwest Stock Exchange * American Stock Exchange
a
Honolulu Stock
live
and
one
around 89.
look
New
This $9 billion
of buving power is
gui«e of
1905
Members
$2 billion for the
Navy for aircraft, in each of the
next few years.
J)ONNELL & QO.
Co.,
and the firm
name has been changed to Stevens,
Cornelius
&
Parsons, Inc. - Mr.
Parsons was formerly a principal
587
new
United
Capital Stock and Rights (W. I.)
long-terms,
an
eager,
intelligent,
minded
management
can
National Bank of Atlanta
Fulton
securities' invest¬
merits, over the short- and
a
be
research
manufacture
Company Limited
of some
(located outside of
that although they
estopped from being effective, as
parallel or
far as bank-buying is concerned.
even steeper up-curve and growth
in
line
with
former
in gross should be at a faster rate Perhaps,
than competitors in the same in¬ Secretary Humphrey's recent con¬
dustry. And above all this there clusion, even a 5% rate in lieu
ings should describe
should
i. ,■
York)
testimony
issues. Thus, the
stock to go up, its earnings, past,
■
.
the
here
tions made to him for Stock Ex¬
thought well enough of the new
change listing were it not for the
Treasury 4s to buy them for their
own
personal accounts, their in¬ expense involved.
stitution's stringency of resources
forced the latter's commitments to
Now Stevens Cornelius
be limited to free-riding of the
unread, and we'd
and
by
bankers
then
millionaires.
lot is
our
fied
really knew what lies
for
store
especially
moment,,
sells
currently
Although UR does not
the
favor seem
air-borne
at
the
in
its
arguments
v/ell"grounded.
]
J
Exchange * Chicago Board of Trade
commodity exchanges
and other leading
Private leased radiotelegraph
circuit to Honolulu
SAN
FRANCISCO
•
LOS ANGELES
39 Offices Serving
¥
m
»
*
•
NEW YORK
Investors
•
CHICAGO
,
Volume 186
Number 5676
.
.
The Commercial and Financial Chronicle
.
(1321)
Steel
The
-
I-now would like
further into the
Carloadings
Retail
tion,
Commodity Price Index
Business Failures
The picture of over-all industrial production the
past week
is: a rather mixed one with steel:
output, .as earlier predicted,
slightly improved from
the preceding
period.
Looking
to
nevertheless, he still is
*
-
the
fourth quarter, "Steel" magazine this week noted that
steel-orders
delivery in the final quarter of this year may help the industry
break the 1955 record of 117,090,000 ingot tons. In the automotive
was
not
surprising that the output of
*
M
.; r>
declined to the
smallest volume since the September
24-29, .1956
week, due to the fact that practically the whole industry is presently engaged in getting 1958 models into production; The only
not
->
to
and
now
capital, to be excluded from
be
above the
-
year-earlier pace
May figures for the
It
was
three
and
true, but
reasons
,
an
understanding of-the
,help to
the
.may
and
statement in
current year.
points
below
December.
The
point above the April
one
-
Interest rates in this
country are
the lowest in the world. ,That is
its
the
high
of
147%
reached
last
perspective.
While
the
*
Board
added
that
in manufacturing industries
showed the usual seasonal rise in
August.
Production
in
the
nondurable
goods
industries increased
mates
of
Out¬
the
ing
more
rates
v. -
*
aren't
u
high
•
in
comnarision
tompdiiMoii
with
Aubrey G. Lanston
the
tvrth those here,
crntti«h
b<-omsn
either,
on
a
hank*
adjust-
upward
of interest
to be encouraged to exercise his
initiative and ingenuity to the
maximum of his abilitv so that all
nnt
do
not
maxmium oi xns aoiiiiy so mat an
™v
pay
may benefit from the genius of
few*
:
•
deposits
deposit that has
a
pre-
To
-
a
pin this thing down, I would
The
reoort also noted that the
800,000 employment decrease
mid-July reflected an "especially sharp drop" in the farm
work force,
which more than offset a "comparatively small"
pickup in non-farm jobs.
:
'
,r
The United States
Department of Labor noted in a separatereport that factory workers' average-weekly
pay rose to $82.59
in' August as a result of an increase'in
the work week to 39.9 :
hours from 39.7 in July." 1
?'• -:' !. >
•'
*
t
in England is
do
hanks;
?
i
stitutions, and with the underly¬
ing premise of the American econ¬
W111V
,111S
1S
,I1HI
rrip
,nmvinini
omy.
This
is that
the
individual
one should keep
demand
.
economically
and inconsistent with
type of society, with our in¬
our
111 mmd that, whereas the Englisl
anf]
!_•
cock-eyed
the
ajs0 wouid inject that, should
ke inclined to compare the
.interest
I
borrowed money originates with
a
provision in our income tax
laws that, it seems to
me, we must
as
consider
being
higher
levels
recorded throughout the 1920's.
j
the '
excessive demand for
deposits
approximate
one
01ie
accurate 'to-turn-
ments
ln the structure
rates. This
the
M ]e}^ls,°f interest rates
interest
work, a joint
report by the United States Department of Commerce and Labor
:
that
prevailed dur-
Employment fell to 66,400,000 at mid-August from the record
level set the month before. At the same
time, unemployment also
declined by 400,000 to 2,600,000, largely because students on sum¬
mer vacations discontinued their
search for summer
-
some
those
more
lIlt; ;Burave
<;omP
degr e e
In
other
words, if bonk could bid for de¬
that
the
^
comparable
mand
from
'
,
The
'
nation's total number
of
jobholders at mid-August rep¬
resented a decline from the year-earlier of
nearly 66,800,000 the'
report noted.: The report added that although
agricultural em¬ :
ployment normally slips in August prior to-the Tall
harvest;
"the contraction this
year was
level maintained in
July.""
;
-
" On°teeTatter
in
fhi.'.ni.ntrv
of interest rate
heinv
the
lowest
Iff
tinue to cxpOct this to .be.the case,'
because we are one of.the .World's
best and: niost,.highly-organized
to:'ealn 3<'"
n.
e
.,
'
;
'
■»
*»>^ W««h.
capital
."msstr businesses and
;
•, •
• i
i".'Structure
'Encourage Borrowing
generally -te desirable-from:, the
u. Finally, any comparisons- roade -W'nt °f .view
^.busm^ra^i. Tins
between present levels ofunterest
r^,
™tos1Jan?1 tboae.trf the-..Twentiai.
should allow for the-lower levete-"ty of
P""'iiPal and, , therefore,
of taxation that prevailed then;
Non-farm'employment went up over the month by' 238,000 :;dchtr management, and credit poli- 1"^ the 'Twenties, when a borrower receives a lowr r^ of reton per
to- 52.800,000 rn
August, a gain considered "modest m relation to
cues, while lenving much te be-paid
,
or
A
7,« 6
for '
his
,%
e 3 8
5
®p®oratc fro
the rise in most recent
desired comnarcs favorably with money, the Treasury bore only a.. Ws total, capital
years,the report pointed out; It said'
piat .is^ its bor-
'
accentuated
:
*
-
the increase
trz"
-
because
- ••
resulted from the; usual late
summer'
food
r
the high vwi-editor sodetlefc'In addition, tiiel
:
execution of our national fiscal,
•••";'
of
7?
:
r
ties by other world
Personal income again climbed to
a
new
high during August
attaining a seasonally-adjusted annual rate of $347,300,000,000
the United States Department of Commerce
revealed.
.*
The-new level is a $13,000,000,000 above the
.
'
justed
;
minor' portion- of the cost; the
"wedjinoney
governments, effective, of net, cost to the borparticularly as to credit policies rower was not much less than the «*'
;mri mueh less so as to fiscal Doliactual interest rate he.paid. Under toat business
cies;
TO ttm exteW this remains the present high rates
expansion in
seasonally-ad--
pace a year
earlier, and $1,100,000,000 above the July rate.
About half the July-August rise occurred in
wage and salary
i
■
M
;
;
Continued
-
on
page
-...J
43
.
the case,- interest rates - in this
country 'could- continue to rank
among the lowest iir the world,
the picture
Such
savings, he
of
costs
only when and as
crnment
inspires
an
of
distrust
in
was
future
In
pleased to
announce
return. This is far, less true
many, many
sometimes
this
individuals)
-may
gathered together for
a. common
Yet, in many,
particularly small
.
With regard to the second mat¬
ter, the comparative levels of in¬
terest rates today and during the
1920's:
are
CHARLES A. PARCELLS & CO.
Such comparisons
made with
full
a
be¬
can
rather misleading unless
come
they
awareness
of
We
the differences that mark the two
tial
-
sums
from
the
were
CO.
attracted
investment
speculative
LIVINGSTONE, CROUSE &
uses.
the amount of
fied.
operations
to
.
the
name
Managing Director
Philip Hill, Higginson & Co., Limited
Interest
rates
were
of London,
and
CHARLES A. PARCELLS & CO.
the
funds
diminished
was
bound
to
England
shoved
has been elected
because
of
that
This diminished
funds from which
higher than they might have been,
speculators were willing
to pay a higher rate than many
legitimate borrowers could afford,
and conduct business under
announce
MR. KENNETH A. KEITH
away
markets
legitimate demands could' be satis¬
will combine personnel and
pleased to
periods.
'During the 1920's quite substan¬
and
are
of
our
a
member
Board of Directors
of
supply
command
a
higher price than otherwise.
Charles A. Parcells & Co.
„
.»
S. R.
639 Penobscot Bldg.
Detroit 26,
It also should be borne in mind
Livingstone, Crouse & Co.
that
1666 Penobscot
mercial
Michigan
Bldg.
this
in
earlier
banks
for
demand
pay
interest
period
were
deposits,
on
them.
free
com¬
to
Harriman
that is, to
This is not
63 Wall
BOSTON
♦An address
Opening
Hampshire
mouth
by Mr. Lanston before the
Session
School
College
on
of
the
Vermont-New
of; Banking. at
Sept. 9, 1957.
Dart¬
Ripley & Co.
Incorporated
bid
•
CLEVELAND
is
be
economic purpose.
stability of the purchasing power in terms of the outlook for inter- businesses,
dollar, here and abroad.
est rates, it is well to be wary of
Continued on page
that
The Investment Firms of
S. R.
^
(Tnd\s
,?
able to keep most
other wordg> when thinking
most
havemo
today.
the
y€9iture» 4n
^ taxation,
drfferent.
of the
are
effective October 1, 1957
,
our
aftAjequity capttal
: Similarly, the 'Twenties wheiv a
saver obtained 3% or 4% on his
become^less
favor- Gf this
eur gov-
able
sense
We
ranking for
a
is quite
-
inauffi--
l accredit
of
•
stated.
level
present
slightly during the month, the board continued, as
activity in the
rubber, chemical and petroleum refining industries increased
levels.
on
-
accommodate Call- of
paying.
demand deposits, the
on
.
hm^S€-2S«/1'«?VillgS-' ^bic5( -has
i»te^t rate._,stature
could,be
to he hVcher hv
counted
has 1 been
were
today, might find
resulting interest rate
interest structure, all other
things remainrates approxiing unchanged, would more cio^el11"
activities
and output of textiles and apparel held at reduced
put of minerals changed little, it further stated.
proper
2%
say,
currently
to
rl A-Pi' ni nv* /tft
O
banks
•
size that it is an
excessive demand
for borrowed
money rather* than
permissible today.; If it were, and,
if
<
statement arounduand tot
empha¬
'
industrial
'<
demands for,
.
August,
dollar.-
*
money*, Iir essence, •
that, statement has to b6
correctbut- ft seems to use that it
would
•
Ty
production again heldsteady the:>Federal Reserve Board reported.
-*
"
v
The August seasonally-adjusted rate was 144% of the 1947-49 :
level, the same as in June and July, but was one percentage point1
of
both to '
Excessive Demand
cient
involved
month
■
borrowers; "and
decrease, the incentives
accumulating
"
the
be
It is claimed that
interest fates
have been
increasing because the
amount of
savings that-has been
Mercury divisions.
For
taxa¬
our
power of the
corporate income tax. Alleges that
v,
first, to
.......
income tax law to permit interest and dividend
payments made
from pretax profits, as a return on
*
bit
a
of
savq and invest
and; thereby, to
multiply the problems of promot¬
ing ^stability vin 'the
purchasing
our present tax system
in 1957 model operations are Ford.
t
serves the
contradictory purpose of stimulating excessive capOther areas, of the 'economy to reflect
gains in the post-Labor Day period were] output of electric
J Hal-credit borrowing and of decreasing the savings-incentive.'
energy
Avert his plan would shift investment
and loadings of revenue freight.
demand to equitable
J Trade volume in the latestweek, due to unseasonably hot and humid weather, Worked r
to;,^>3, f *P™ ai,d at the same time encourage savings for investmentdiscourage consumer buying which resulted in a slight decline
'"in equities.
:
t»0• V. *
below the level of the similar week a year
ago.
4
manufacturers
go
though it may
.
bullish
discouraging Treasury's budgetary and cash position impact
| on the interest rate outlook. To end the present money markefs imbalance, Mr. Lanston would
change our corporate
„■
the past week
cars
'
bonds. Relieves the need for caution exists in view of the
on
for
field it
* V?
Prominent government bond specialist detects from a
"kind
of saucering out", in bond prices that a much
better bond
market sentiment exists but,
.
even
aspect of
Aubrey G. Lanston and Co., Inc., New York
City
such
appear,
extraneous.
One
tax structure serves
to decrease the net
cost of
money
to raost groups <of
at.
By AUBREY G. LANSTON*
Index
Auto Production
Industry
to
matter
Trade
Food Price
comparisons
two I have
discussed.
as
Electric Output
State of Trade
and
oversimplified
The Interest Rate Outlook and
Production
5
Street, New York 5, N. Y.
PHILADELPHIA
DETROIT
•
CHICAGO
READING
41
6
The Commercial and Financial Chronicle
(1322)
m
.
•
,
|
,
.
'
a*
.
I IVIllvVlw
I
o
*
f
■
Maintains the change in bank stock
,./•
j
i
.1
justified by the improvement of 34% in the earning power of stockholders
money. Predicts bank credit will continue in short supply, with
present higher level of loans and rates holding.
fween
r
j.
.
•
.
«
•
«
quotations from discounts Jo premiums ,s
!
of
be- den which the New York
earning assets and deposits,
required
reserves
tained.
v
Wn
'
to
-
meet their reserve deficiencies at *
the Federal Reserve Bank of New
York.
.
and
with thei mpact of the high level
20%
deposits,
demand
,
From Discount to Pr
um
As analysts, we are concerned
These banks
larger cash reserves
carry
against
of loans and the new interest rates
i
these
,
earning
the
Qn
of
power
compared with the 18% for their banks, particularly the extent to
282 competitors in the 50 reserve
11
fhp nast
;n
funf
QPP
„nn
must
borrowing $497 million to
were
re-
Chicago banks bear.
the cash
be main-
and allows us to estimate
/low break-even point.
...
system
he acknowledged the unjust bur-
truer
a
relationship
the
of
picture
imnart of high level of loans and
impact
ot high level or loans and
Rank spn.ritv P*nprt ritps
Bank
security expert cites
the new interest rates on earning power ot hanks, with Wew
York City institutions particularly benefitting because of their
provides
^
because
I
-
geographical
ent
figure.
j
j
tin, Chairman of the Federal Reserve Board, agreed that the pres-
deposits would shrink to our serve requirements is outmoded,
This net figure is signifi- and needs overhauling. In effect,
gross
,
n
*
Schapiro & Co., Inc., New York City
i
would show its total
gross
deposits. Theoretically, if
customers stopped writing checks,
APVAAU%AAAJp
■
bank
dual
■
KAVlltlltfY
A
SCIIAPIRO*
By MORRIS A
**
■
_
Prncnorfc II
II17ACTAV
•MwvSIIV*
■
Thursday, September 26,1957
...
which current earnings reflect the
changes8
checks
cities, and 12% for the 6,124 coun- more recent
In Exhibit
try member banks. When ques- II? we can observe the impact of
tioned,, Mr. Martin told the House these changes on the operating re¬
deposits (less
in
process of collection) have risen
$2.2 billion, from $21.5 to $23.7
-
^® 14™®
sults oI these banks*
1
been opportune to reduce reseive
rj^ fjgures relate to the major
requirements, and that the Board New York City banks. First, we
making loans. For every $100 of
Let us begin with the stock- posits throughout the nation have
ls. wntinumg its studies.
see that operating expenses (line
deposits, loans of the New York holder's interest.
Since Septem- grown much more rapidly than m
in^ Z h difterentia.l applied to g) haye risen $292 million, from
City banks have risen from $25 in ber 1946 due to retained earnings New York City.
Elsewhere de- $20 billion of net demand deposits ^3 l0 $515 million, or 130%.
1946
to
$70
and Sale of additional shares, the posits are more local in origin; in
^bJec* to
Meanwhile, income from sources
today. Never
______
capital accounts (or total book the City they are more cosmopolother than interest has advanced
before
have
value of all outstanding shares) of Han.
Because of the great accuhn^thp!p'hJnk^
and
from $86 to $194 million. The net
these banks as
Hp.-these reporting banks have in- mulation of capital and the variety elimination^hints these
and effect of these two items is seen
a
group been
/
creased $1 billion, from $1,983 to of
facilities avaiiable m - New ^
^tps J?? - in the theoretical yield required
60 favorably
$3,029 million a gain of 53%. In York City, its banks-attract dd^bm^owfnffbnhratio^ on loans and investments to break
situated with
addition to this capital, there are PPSits and business from all parts
imped.es the b01 iowin|rOperations even>. iine ,3. This is the interest
regard to their
valuation reserves of $321 million, of the country and the world, to
of the United btates ireasuiy.
rate.which these banks must obcapital posi,sum
otherwise deducted from a much greater degree than do
ineJNew. York v^ity panks nave tain on their total loans and in-v
tion, reserves,
the carrying value of loans, and banks
in -other centers of. the
.iSL^?B6^^has'^he vestments in order to break even.
and
demand
therefore, not seen in the usualcountry^
- --V
; ■
authority to reclassifv these banks' ^biS;
critical. rate~ as oi1!? ^ •
for their servil■Hp
published bank statement of con-' - The ;• break-dovyn of deposits, • fromv cenfrai -reserve-'* citv 16''re « from?.0.62.%. in 1946 to 1.37/o in
ices-.
A
real'wBm dition.
showing the various classifications,
™ ® 1056.;. ^Nevertheless, as a >; group,. •;
istic
market '
This
huge
block
of banking is of special interest to analysts. ®®™e fihther in '-i matter where these New York City banks are
for bank credit,
HMJMiJB capital, held by 17 institutions, is Time deposits (including savings)
an , * f^ra
™ J involved the lowest-cost operations ; in
has vitalized
un^at(;hed elsewhere. It repre- on which-interest must be paid so gioss an unfairness is involved. American banking.
<
their
operaorr,s
•
c ap,ro
gents 22% of the $14 billion total represent 15% of the total comLoans and Investments
Their low break-even point is
tions and en-of. 6,438
member banks of the pared with 30% for the other 359
After providing the higher cash
primarily the result of two fachanced their prospects.
Federal Reserve System.
Not so weekly''reporting, member banks" reserve these banks held on Sept. tors.' First, the New York City
(
Against the background of re-*lopg ago this point was of aca- in 93 other cities. Balances of
$23.6 billion total loans and banks enjoy proportionately
cent monetary changes, the out- demic interest.
Today, however, domestic and foreign banks are investments an increase of $3.7 larger revenues other than; interlook
for
banking
is . certainly with the demand for credit high, shown in the amount of $4.2 bil- kimon ,sj[nce
September
1946.'-est income, such as trust fees,1
favorable. Indeed, for banks gen- capital counts. The ability to make ?i°nThe city is the focal point Within ^jg total, we can see-, commissions, service charges, forcrally, net operating earnings in loans is today's drawing card in 4n a vast network of correspon- sharpiy divergent' trends.
Loans eign department earnings, etc. In
1957 are surpassing all previous the banking business. Since capi- dent bank relationships throughjncreased threefold while invest1956, for example, such revenues
records.
The actual dollar totals tal funds are the basis of lending OU4 the country and around the ments were cut in half. Loans ex- for
these banks amounted
to
will be impressive.
•
capacity, these large New York world.
panded $11.1 billion, from $5.5 to $19.80 for every $100 of gross
However
as
security analysts City banks are assuming new imWe know that the New,.York $16.6 • billion,: a rise of 200%. operating income. For the large
We must continue to judge perportance to the economy of New City banks are confined by State Meanwhile, investments, mostly Chicago member banks, the figure
formance in terms of the stock- York State, and, of course, to the law to the city limits. A question Treasury, obligations,
contracted was $14.40; for the reserve city
holder position.
What rate was nation as well.
of public policy today is whether $7 4 billion, from $14.4 to $7.0 member banks, $15.50; and for the
in
back
are
business
comes
Stockholder's Money
The
.
This
billion, a gain of only 10%.
*
.
Banks
surprise for we have
that bank de-
no
as
along
all
known
.
,
-
earned
Nowhere
stockholder's
the
on
else
large blocks
can
To what extent do cur- of bank credit be provided as
rent earnings of his bank reflect readily
as
in New York City,
the expanded loans and higher Large national borrowers, as well
rates?
How
do the results per as many interior banks, therefore,
Share compare with others? Have must continue to rely on these
management policies enhanced or institutions.
Their large lending
retarded the status of his invest- power, directly or in concert with
meat?
banks elsewhere, is a vital asset
money?
jn
If
,
.
,
advice
our
T.
to
.
,
clients
.
to
is
to
nations hii«inPQ<!
to Ihp
the nation
s business.
have merit, we must first turn to
the Jarger scene and evaluate re-
is
in
banking. Will the
interest rates hold? How
in
public
policy
Questions of
developing
The condition
Exhibit
on
with
I
the
.
comparable
which a. bank
9bang?s
.®eem llkeJy?
and liabilities at foreign branches;
the significance
of the and, second, because
is
tions
Act,
by
passed
the
Senate
our deposit
figures exclude checks in process
of collection, whereas the indivi-
and
now
awaiting action by the
House, which authorizes preferred
Stock, convertible preferred, for
national
banks
(one
tnerous provisions
legislation)?
changes
affeet
of this pending
4
important
indicated;
are
the
;
•
•
•
•
,
•
will
position.
ot
eition
our
If
beloie us.
commercial
Total investments
what
about
more
.
'
is
other
now
has
money
Citv
to
,
see
how
affected
u..
tight"
these
institutions
glance
nosition
the
3(3(j7
2.174
SS
wp
New
u
1
1ho
at
the
flosn
f?
•
nf
morning
himin#»cc
DUSineSS.
banking weather report of
"reporting member banks" is
released,
weekly
hir
tLio
by the Board of
8
, A„
M
New
filysts
eiy3ts,
New
mew
,
r*
and,
pressuies
^^2
holdings
of
GovernmentTe
bank
sellers' market for
a
gradually
credit
these
to
$23,693
$23,940
$21,916
$24,538
15.648
15.601
15.796
14,297
3,533
3,338
1,780
1,269
:
iZIIII
to
'
Borrowings:
>
310
;
ures.
much
enough
monev"
On
seen
Sept.
13,
realized
yield required - was
"2.04%:. This meant that last year
uMnlc<5
a
croun
(before
,fiin
ioans
of
ooo
had
a
of
taxes)
and
nrofit
$20 40
invest-
with $8 90
compares
"P:* J-nis comPdies witn ij>o.»u
111 (946.
.
After
applicable
income-taxes,
their net operating earnings
climbed from $134 to $241 million;
larger
the
On
to-
1956
capital
ac-
money", counts these banks earned $8.64
the fig-
these
banks
of
$100
per
book
$6.41 11 years ago.
value against
This improve-
807
428
1'874
2,944
2,900
2 917
T250
lion
liisi
68
429
*
reserves
C'al,lUl accounts
174)
521i
370
amouiX
thousands)
in
......
1Q_,
mog
'
Operating Results of Major New York City Banks (1946-1957)
niollar
2.796
1>493
i. a,.r.«
.
Vieid—%
61.9.400
.—
_
2. Average Investments
Income
Yield—%
68
:
__
_
a
175,300
-
...
.
,
3. Total Loans and Investments
1.289
"
995
439
32 1
249
142
N.A.
83,029
$2,792
$2,362
$1,983
$3,025,000
•
'
Interest Income
2-
Yield Realized
Total
-
...
$29,033
—
$28,965
$25,785
$24,028
5. Total Operating Income
.6.
20%
5%
A
20%
5%
24%
6%
.
20%
G7o
Total operating Expense
7. Net Operating Income
8. Applicable
——-
Income
Effective. Tax
* Excludes assets and liabilities at foreign branches.
Reserve System.
9.
Ratio of Loans to:
Total Assets
?eP®!"
S
7
Capital Accounts
1957
—
57.1%
,0'0%
5.47-1
'
*
1956
1951
1946
55.4%
67
0%
5.74-1
40.7%47
^
4.45-1
22.9%
2"'-5%
2.77-1
"
Net
Operating
;
•
Taxes
<b) Dividend —%
(c) Retention— %^
-
-
'160.300
110,700
224,200
-
2.26%
1.51%
0.93%
0.62%
86.500
125,900
581,800
421.400
515,200
313,000
-223,500
474.300
233,200
268,800
126,700
197,900
63,800
-32.2%
134,1181
92,000
73,000
2,790,600
2,348.300
2,091.100
8.64%
6.05%
6.41%
241,100
Earnings
-
10,10b,000 .15,823,000
989,500
49.2%
Rate—%
10. Cash Dividends
±
11. Average Capital Accounts
(a) Earnings —%
3.41%
1.37%
194,800
Yield Required
against:
Demand deposits
deposits
sewooo
295,600
2.19%
1.59%
1.42%
$23,321,000 $20,212,000 $22,140,000
794,700
455.900^
334,900
4" other Operating Income
Cash reserves required
"*
1<lir
.....
sisisMoo sio.Iomoo
lo.u,.
Interest Income
,
t
a
fhp nrofit
iq^fi
..
Interest
irom .Federal Reserve Bank.
Valuation
Tn
the vield
EXHIBIT II
T~"
-"-7
c™1IvitiP«
pres-
b&WSe
money"
"too
"not
evolved
market
money
from
can
—^—■
!
.
advanced from 1.51% in 1946 to
^
The^™tesZ^"tigM
condition
be
in
'
c,
S^ci^%fC^r!^lt? A*'6
York
Citv
sit T
York City,
Sept.
13, 1957.
Ywk
tbo
lessee
than
348
(
the
$14,368
$24,028
SOURCE: Board of Governors of the Federal
■
1,079
—
and'
"
i^S.
period
558
863
As we can see, the actual yield
realized on loans and investments
™p^Jal 1*.
fr0m
$28,965 - $25,785
Governors Of the Federal Reserve
Washington
.
$29,033
Svstem
in
$«,5ii
i,isi
Foreign banks
have
which sets forth their
at
$7,776
fbo
rirrnm--
growth
market
Inevitably,
"S&l
Domestic banks
yuy Jlisiliuuons, we nave other liabilities
newspaper
Su-
5>34;}
.
the larger reserves required,
25% for all other member "banks. ^^n^ ' Vpbis
$3,319
trend and
less favorable deposit
the* ritv"
snppial
liabilities**)
happening is
rp
This
4i648
S,S -"KS $1?:S
$7,014
——■---——
downtown Man-
liancial center. To
Only
$7,129
assets—net
-
battan, the country's foremost fi-
York
XOIK
$10,693
i,96i
Honocit
rp-
dollar °Perating costs'
generally higher compensation for
and the relatively
smaller volume of loans and investments which result from the
therefore, had to liquidate investtheir
19-iG
1.967
assets
'
tho
of
haivk-s
hpnnmps mnr#
rpsprvp«
Corresponding Week
i.bio
altprpd
total
xneir holdings ot Lrovernmentsecurities by over $8 billion, or 61%,
a proportion far greater than the
$11,934
__j—
the larger banks located immediUS in
s{owm<
*
'
L^ns^to
nrpvailing
a
money
1951
raHipallv
havp
of
on
id®hpr
rSnb-ed if?ban3.41% in 1956, a change which
VvfSL
reflects only partly the successive
^nov m^lpf ?rp<?firp?
increases in market rates on loans
..
195C
loaa
Becausp
.ifl
mittee, William McChesney Mar-
Total deposUs icss checks in process Of collection
(a Demand deposits—adjusted
therefore, try to consider
(b) Time deposits except Government
ately about
recent
Testifying before this Com-
.
Government
shown below.
sidering the Financial Institutions
„
,
the
at
of
ritv
vnrir
qiure to break even becomes more
significant when we consider their
4
to
rne i«itnos of foans to total assets
Banking and Currency con-
on
Act.
likely to be valuable. "
Let US,
aired
1
conclusion
our
was
holdings
the^'ratios
^
«
T\1(r
wblch
securito^
•
hearings by the House Committee
and agricultural loans
understand what
we
happened,
ments
'
aniz^°a+n!i5.lnw
and ' !?,
cash
wCTeJorSd
ejm>P
.
The question of reserve require-
Sept.li,'1957
Ail other loans...
other securities
banks.
Reserve Requirements
'
'
•
J
.
.
„
.Wednesday
%
nkteh"
fnce
the /acefinancial
po-
In this period, a large pattern will
be seen, relevant to the questions
lias
_
of
to mppt loan domands
n^riod
their
Bank
Federal
At Close
AssrTsr
assets($)
developments
thi
^
Bank
(Central Reserve)
du millions of. dollars)
-
.
•
u
in
the
to
In New York City
.
^io appraise tnese cnanges, we commercial, industrial
must examine the
™ Wai II
World
City
Holding Company Act of 1956.
many
stockholder's
National
.
>
..mm-n-crv
Tn
Firgt
proportion
States Government secur|ties to total assets declined while
the ratio of risk assets rose.
In
EXHIBIT I
Selected Condition Figures of Weekly Reporting Member Banks
nu-
Clearly,
.
the
of
the
pm.Suant
branching^ and mer- would ordinarily show in.its pub-
provision m the Financial Institu-
The
United
critical by the pending application
not
figures
J1?
i
question of changing the legal..
b a n k1 n g frontiers is always
thorny It has now been made
,
figures shown in
are
i>-°1?Ufu1S'
^
country member ban s, $ . .
Second, the sheer size of their
operatmns and the hug<e volume
of items handled make possible
greater efficiencies^
billion, or 51%. The composition
0f bank assets has changed radicauy. In wartime, Treasury obligations were the chief asset. Today, loans have taken their place,
to form a bank holding company,
Monev
Will new bank-holding lished statement, first, because the
companies be allowed.
What leg-, figures before us exclude assets
gers.
wS
What
bf^°i"
of
Depositors IVIoney
trends
cent
rise
Denositors'
Jbc b?.nkjn§ district Haes should
be adjusted to give these lowcost, highly efficient banks access
\° Pe?P?e and. their businesses
ocated in the metropolitan area
47.1%
142,100
' 132,900
4.76%
3.88%
3.92%
2.13%
3.49%
2.92%
.
Volume
186
5676
Number
.
The Commercial and Financial Chronicle
.
.
(132^)
34 %
of
ment
in
the
earning
stockholders' money ex¬
power of
cantly.
Banks
and
ihave
seasonal
discounts
from
moved
to
premiums.
1
We
that current op¬
erating figures reflect only partly
the
rates
new
quoted
now
loans and securities.
on
Banks made
loans and investments when rates
were
lower.
fore
the
pleted.
Time
must pass
adjustments
are
com¬
with
lower rates.
the
possibility of
It is useful to know
how much leeway exists.
By way, of illustration,
.
be¬
Against this time lag, we
deal
must
estimate
the
of
power
theoretical
these
let
us
earning
banks
total
of
the
find
we
loans
and
Sept.
that
13
investments.
<
balance sheet,
total
loans
and
in¬
vestments
in
now
the
a
rise
i*
expected.
considerable
bankers
that
Tnere
opinion
loan
To Meet
is
The
among
totals
might
mand
-
for
consider
that
and
money
the
Governors of the
Stock
Exchange
,
is
today by E. Jansen Hunt, White,
Weld
&
Co., New York City,
worldwide, and that pressures for
expansion will continue here as
There is
that
no
savings
reason
will
to
Barth
&
soon
Joins Francis I. Du Pont %
national
trade
association
repre¬
(Special to The Financial Chronicle)
folios in the City should theoreti-
yield
with
retail
5%,
more
business
the-twholesale banks.
"
ments, let
for
■
and
J. R. Wittiston
member
firms
will
be
in
Osborne, Thurlow
at¬
J.
tendance.
The New York Stock
R.
Williston
&
Co.,
Broadway, New York City,
Exchange
bers
is to be represented at these meet¬
of the New
change,
Oct.
on
general
York
1
will
partnership
Osborne,
Bradbury
admit
H.
Charles H.
Cunningham, and to limited part¬
nership Ralph H. Cutler.
Frederick F. Barker
partners
in
which is
being dissolved.
With J. A. Hogle & Co.
With
(Special to The Financial Chronicle)
DENVER, Colo. —Frederick F.
years
Mr.. Barker
with
for
was
&
All
Schirmer, Atherton
BOSTON,
of
—
Irving
On
\
Schirmer, Atherton & Co., 50
&
New"York and Boston Stock Ex¬
Co.,. in the municipal department. changes.
for
rate
this
)
one-year securities.
basis,
derive an
over-all return of 4.70% on total
•
we
loans and investments.
expenses
is
so
Our
income
other
estimate
is
differential
a
of
taxes..
net
these
banks
would
leave
income
net
income
After
(be¬
Principal
subject
deducting
15
and
and
in
Oakland,
(annual)
Coupon
to
payable
bonds
In the
able
4
is
;
leeway against
possible easing of money rates.
by the
operating
will be * $75
year
this
reasons
we
are
results,
for
-already ex¬
to be guided
the
first
high level of $275 million,
case,
the
(Accrued
Coupon
Amount
$400,000
Price
_
5%
1958
2.50%
1959
2.65
1960
2.75
400,000
5
5
\\ •
interest
to
actual
rate of earnings
stockholders'; money
of book value.
or
$9.10
This is
per
400,000
■
•5
5
400,000
400,000
$100
/
-
Amount
2.85
1962"
3.00
.
creditable
400,000
5
1964
3.05
400,000
5
1965
3.10 '
a
Due
1974
100
3.40
1975
100
400,000
3%
1976
3.45%
400,000
3 y2
1977
3.45
100
3%
1980
100
major commercial banks will raise
its dividend this year.. Bankers
400,000
5
.1969
400,000
1
400,000
1
400,000
■■
1970
3%
•
3.30
».
•
*
-
1
*
'ir '
What Lies Ahead
we must form some
to
as
what
lies
ahead
in
banks.
Will the present
level of loans and rates hold? Or
Will there be
an
abatement of the
*
postwar
no
such
must
!
expansion?
At present,
change seems likely. We
these
assume
pressures
worldwide
continue, subject
reversals 1 inpublic
.
These
1981
Not-reoffered
1982
Nof-reoffered
Chapter 17 of the Cali¬
fornia
Education
,
,
school
purposes,
-
Code
for
Corporation
the
in
various
opinion
of
counsel
constitute
binding
obligations of the Oakland
valid
and
legally
Unified School Disfrict. The Board of
C. J. Devine & Co.
Merrill Lynch, Pierce, Fenner & Beane
-
power
Laidlaw & Co.
J. Barth & Co.
Roosevelt & Cross
"
E. F. Hutton &
Incorporated
,
Company
...
...
Brown Brothers Harriman & Co.
Newark
Taylor and Company
is
obligated to levy ad
bonds and the interest thereon
Clark, Dodge &Co.
all
Fidelity Union Trust Company
and
valorem taxes for the
payment of said
Gregorys Sons
property within said
sub¬
ject to taxation by said District
(ex-
cept certain intangible personal prop¬
erty, v/hich is taxable at limited rates)
without limitation of rate
?
Stone & Youngberg
Lawson, Levy & Williams /
'
A. G. Edwards & Sons
H. E. Work & Co.
Ginther &
upon
District
or
amount.
Company
Irving Lundborg & Co.
If the percentage of loans in
rela¬
tion to assets is to hold or
move
is
likely
that
rates will rise further.
that
Shuman, Agnew & Co.
Hill Richards & Co.
Kalman &
Company, Inc.
Juran & Moody, Inc.
lower
The above bonds
are
if issued and received
rise, in interest rates has
followed the expansion in loans.
believe
California.
bonds, issued under provisions
of Division 3,
.
The
it
as
moneys
will
always : to
psychology.
higher,
eligible
Supervisors of Alameda County has
Company
F. S. Smithers & Co. v Andrews & Wells, Inc.
•
political,
economic,
and
social
;; forces which have propelled the
The First Boston
Eastman Dillon, Union Securities & Co.
'
are
100
'
r
savings banks, and
1
100
Bank of America N.T. & S.A.
the
be invested
legal investments
.
Company/have
The Northern Trust
are
like¬
are
security for deposits of public
,
1979
5 -
for
bonds which
.
400,000
,
trust
California
in
3.40
3.25
•«
for
and
400,000
1968
,
investments
400,000
5
400,000 V
investment,
legal
in
400,000
.
legal
are
savings banks-and in Cali¬
3.35
We may expect that each of the
for
Federal
statutes,
York
1973
1978
J
bonds
New
3%
3%
seen
these
in
400,000
3%
judgment
pay-
bonds
its
existing
for other funds which
may
400,000
*
under
100
400,000
:
,
personal in-
3.30%
3.20
t
-
present
1971
3.15
v
all
California
1972
1966
s,.As analysts,
principal
■
upon
3%%
1967
-
*
.
panyr although these have
fit to sell additional shares.
i
.
3%
5
<
already acted.
So have First National City
Bank,
Chemical Corn Exchange
Bank,
/and* Marine Midland Trust Com-
*
interest.
bank's
wise
Trust Company and J. P. Morgan
5'
both
to
as
400,000
400,000
cost operations.
.
'taxes
believe
the
or
Yield
2.95
"
1963 /
5
..
Price
Rate
$400,000
'
showing for these banks and at¬
tests .to their efficiency and low-
.&
$1,000
for savings banks,
subject to the
legal limitations upori the amount of
added)
Coupon
Yield
1961
i
•
be
or
Due
400,000
a,
\
■
Rote
gain
will reach 9.10%
*
1958.
of
fornia
six
If this proves to be 4he
present
15,
regulations and court decisions.,
,
funds and
AMOUNTS, MATURITIES AND YIELDS OR PRICES
'
on
of
investments
in 1957 could move up $35 million
over
last year and reach a new
'
coupon
November"
from
State
the
County
denomination
only
exempt
We
theoretical
months and by indications
gleaned
from time to time, net earnings
of 14.5%.
First
that net
below
figureforplained. If
^
(May
at
opinion of counsel, interest
come
year—a substantial
million
interest
payable
by the District
and
►
jump of 45% over the
$241 million actually reported last
-a
It is likely
earnings this
in
and
T1V2 % of present capital accounts:
This theoretical figure would rep¬
A
15)
California.
registerable
54%;'to
tion, net operating earnings of
nearly $350 m i 1 li on, equal' to'
a
semi-annual
November
office of the Treasurer of Alameda
provide for applicable state andFederal income taxes, there would
be left in this theoretical calcula-'
resent
'
Dated Nov. 15, 1957, Due Nov. 15, 1958-82r incl.
taxes) of 3.20% or $32 per
$1,000 of loans and investments.
Applied to $23,500 million, this
profit margin produces $752 mil¬
of
'
interest.
fore
lion
•
I
yield of 1,50%
a
This
even.
'
1957, but
than
that
currently require
to break
NEW ISSUE
Operating
higher in
are
Van
Alstyne, Noel & Co.
Stern, Lauer & Co.
approval
Dahlquist,
neys,
Magnus & Company
The Weil, Roth & Irving Co.
of
legality
Herringion
offered when, as. and
by
us
and subject to
by
Messrs.
Orrick,
&
Sutcliffe,
Attor¬
San Francisco,
California.
interest
C.N. Whites Co.
Those who
interest
lie ahead must also believe
loan ratios will decline
Hayden, Miller & Co. Hooker & Fay Brush, Slocumb & Co. Inc.
Fred D. Blake S Co.
rates
that
signifi¬
A circular
relating to these bonds may be obtained from
any
of the above underwriters.
H.
staff
Congress Street, members of the
many
Garrett-Bromfield
Mass.
Gale has been added to the
which the Treasury has just des¬
ignated for its
are
Thurlow
(Special to The Financial Chronicle)
Barker has become associated with
ing.
Osborne
invest-
For
to
Thomas
K.' Thurlow,
Norman J. Marsh and
Governors.
115
mem¬
Stock Ex¬
banks
less
apply the 4%
us
current
senting member firms of the New J. A. Hogle & Co., Equitable Build¬
stand at $23.5 billion,
"»LOS' ANGELES, Calif .—James York Stock Exchange will hold
$16.5 billion of loans, and $7 bil¬
B. White, Jr., is now with Francis' business ..sessions
in
both
San
lion
of
investments.
With
theI. du Pont & Co,, Statler Center.
Francisco and Los Angeles de¬
prime rate at 4!/2%, loan port¬
"cally
of
President.
Marco F. Hellman, J.
Co., San Francisco, and
Lloyd C. Young, Lester, Ryons &
supply the needed money. When
Co., Los " Angeles, resident gov¬
we
weigh all factors, it seems
ernors of- the
Association, are in
safer to assume that bank credit
charge
of the arrangements.
will continue in short
supply.;
Following its usual custom, this
elsewhere.
discussion
Francisco, and the Beverly Hills ings by James Crane Kellogg, III,
Hotel, Los Angeles, from Oct. 7 Spear, Leeds & Kellogg, New
through 11, it was
announced York, Chairman of the Board of
de¬
credit
of
a
Partners,' officers and office
(managers
of
local
California
Coast
on
to
problems in the investment indus¬
try.
Firms will hold its fall
meeting at
the
Mark
Hopkins
Hotel, San
luture.
must
Board of
Association
level off, but no basic down-trend
is
in
sight for the foreseeable
We
voted
Exch. Firms Ass'n
lending season
seeing the pattern of
expansion. However, no
are
suppose
.
by apply¬
ing prevailing rates to the present
From
we
major
recognize
are
middle of the Fall
plains why bans stock quotations
7
September 25,
1957
and Financial
The Commercial
8
Chronicle... Thursday, September 26,1957
(1324)
of
sources
Box
Dealer-Broker Investment
area
COMING
Utah.
EVENTS
Engineering Co.
Aetna Standard
—
Data
ucts
Field
National Starch Prod¬
(Santa Barbara,
Sept. 25-27, 1957
Cal.)
Wall
bulletin are data
5, N. Y. Also in the same
Investment Bankers Association
Meeting at Santa Barbara
Fall
Iloudaille Industries.
on
Investment
In
Broadway, New York
Shoe—Data—Herbert E. Stern & Co., 52
Street New York
the following literature:
send interested parties
to
In the same issue are data on
Inc., Frlgikar, andJessop Steel.
6, N. Y.
American Brake
firms mentioned will he pleased
It is understood that the
.
in current issue of
—
"Newsletter"—McManus & Walker, 39
Recommendations & Literature
Dept. K,
served—Utah Power & Light Co.,
899, Salt Lake City 10,
Biltmore.
Atomic Letter (No. SO)—Features
the Nuclear Navy; an artist's
conception showing all 21 of the atomic vessels now in
operation, under construction or planned; a table showing
the principle contractors for the ships and reactor com¬
ponents; also mentions the large Swiss and Dutch holdings
V of the Fund's shares. Comments on High Voltage Engineering
and Foote Mineral Company—Atomic Develop¬
Inc., Dept. C, 1033—30th Street, N. W.,
Company
ment Mutual Fund,
Washington 7, D. C.
View
Burnham
—
Marietta
American
cago
and
York 5, N. Y. Also avail¬
Company, 15 Broad Street, New
able is current Foreign Letter.
—
Progress report
—
Company—Analysis—Purcell & Co., 50 Broadway,
Anaconda
New York
Co.—Memorandum—Wm. C. Roney &
Co., Buhl Building, Detroit 26, Mich.
Arcady Farms Milling
Bonds—Circular-—B. C. Zieglcr and Company,
Fuller Manufacturing
West Bend, Wis.
Market—Analysis—E. M. Saunders Limited,
Money
Victory Building, Toronto I, Ont., Canada.
'
Co.—Memorandum—Robert W. Baird &
Milwaukee 1, Wis.
Co., 110 East Wisconsin Avenue,
Francisco, CaL)
Oct. 7-8,1957 (San
Association
Exchange
Stoek
of
Firms Board of Governors meet¬
ing at Mark Hopkins Hotel.
Oct. 10, 1957
Corp.—Memorandum—A. M. Kidder & Co., Inc.,
1 Wall Street, New York 5, N. Y. Also available are memo¬
randa on Southwestern Public Service and Sunshine Biscuits,
General Shoe
Canadian
Bond Club of
Pa.
4, N. Y.
Flower Hospital
(Philadelphia, Pa.)
Philadelphia 32nd
Annual Field Day at the Philmont Country Club, Philmont,
Sept. 27, 1957
11, 111.
Security Building,
Monthly investment letter — Burnham
Dept. 11,
Company, 101 East Ontario Street, Chi¬
Marietta Company
American
(Omaha, Neb.)
Bankers
Association annual frolic and
Investment
Nebraska
the Happy Hollow
field day at
Country Club (to be preceded
a cocktail party, Oct. 9 at the
Omaha Club).
;
by
.
of
Bank
The
bulletin—Economics Department,
Scotia, 44 King Street, West, Toronto,
Review—Monthly
Canadian
Nova
Canada.
.
Carrying
*
'i
Royal Bank of
Business Development Department, 360 St. James
on
Canada,
Business in Canada—Booklet—The
St., West, Montreal, Que., Canada.,
—
Wall Street, New
Selected
Issues
Now York
York 5, N. Y.
Candidates
Stock
Common
—
Investment
—
Francis I. du Pont & Co., 1 Wall Street,
5, N. Y.
Favorite Fifty
Analysis by dollar value by number of in¬
of the listed stocks most popular with
—
vestment companies
Samuel & Co.,
professional management — Ralph E.
Broadway, New YTork 6, N. Y.
Guide to Business in Canada
ment
York
—
Brochure
—
115
Business Develop¬
Department, Bank oi Montreal, Montreal, Que., Canada.
Inflation
Bulletin
—
v
f
•••..•:
•
Park, Ryan, Inc., 70 Pine Street, New
—
1 '
/.
Hercules Cement
,
,
,
'
Powder
Hercules
•'
•
■
;*
of
Stone & Co.,
5, N. Y.
Stock Market—Monlhy survey of economic picture
—-Nomura Securities Co., Ltd., 61 Broadway, New York 6,
Japanese
N. Y.
Turnpike—Bulletin—Tripp & Co., Inc., 40 Wall Street,
N. Y.
Marine Midland
;
42
& Co.,
Park Jockey
Club—Bulletin—Security Adjustment
Corporation, 16 Court Street, Brooklyn 1, N. Y.
New York
—
Current information
Capital Fund of Canada Ltd.
—
Report
—
Carl M.
Loeb, Rhoades & Co., 42 Wall Street, New York 5, N. Y.
Newport News Shipbuilding—Analysis—Bache & Co., 36 Wall
Street, New York 5, N. Y.
Also available is a review of the
Stock Market and bulletin on Corn Products Refining, West-
Defensive
Strength—Harris,
New York 5,
Upham & Co., 120 Broadway,
N. Y.
Mobile Research
—
Information
on
research and development
activities—Socony Mobil Oil Company, Inc., 150 East 42nd
Street, Room 2400, New York 17, N. Y.
Investment Bankers Association
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
and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
yield
4, N. Y.
Power—Memorandum—Green, Ellis
on
& An¬
Also available is
derson, 61 Broadway, New York 6, N. Y.
Northwest
a
Pepsi Cola.
Stocks
—
With
particular reference
to
sociation
Dry Goods, Deere & Company, Ashland Oil & Refining, and
General
Telephone
Corp.—Thomson
&
McKinnon,
11
Wall
Street, New York 5, N. Y.
Primer
Production—Report—Western
Paramount Enterprises, Inc.
—
Analysis
—
Amos Treat & Co.,
of
Life
Stocks—Booklet
Insurance
—Robert H. Huff &
on
life
insurance
Co., 210 West Seventh Street, Los An¬
geles 14, Calif.—$1.00.
Sound
&
Values
in
Common
Stocks—Circular—Bacon, Whipple
Co., 135 South La Salle Street, Chicago 3, 111.
Toronto
Stock
essential
Exchange
trading data
Bulletin—Monthly bulletin showing
on
listed issues—The Toronto
Stock
Chest in the
Growing West—Booklet describing re¬
annual
dinner
the
at
As¬
mid¬
Southern
■
Texas
at
Group Investment Bank¬
Association annual meeting
ers
the Shamrock Hotel.
of Canada annual convention at
Manoir, Richelieu, Murray Bay,
York
National Security Traders Asso¬
ciation Annual Convention at
the Broadmoor.
CHICAGO. 111.—Robert L. Clut-
Broadway, New
6, N. Y.
„ter is
Co.—Analysis—Singer, Deane & Scribner, Union
Investment
Co.,
'
676 St. Clair Street.
Building, Pittsburgh 19, Pa.
San Juan Racing Association, Inc.—Report—Hunter
Securities
With Keller & Co.
"American
Investor"
American
Stock
Exchange,
86
Trinity Place, New York 6, N. Y.—$1 per year. Also in the
same issue are articles on Ilarhess Racing,
Seal-Kap Corp.,
and Dejay Stores, Inc.
—
Sorg Paper Company—Analysis—A. C. Allyn & Co., 122 South
Salle
Street, Chicago 3, 111.
Copper Mills Ltd.
BOSTON, Mass.
'
j
ll|1
v
•
4
'
*
'
has
—
('•
'
Maurice
A.
*
1
become
'
affiliated
with Keller & Co., 31 State Street.
.He
was
formerly
with
Palmer,
Pollacchi & Co.
TRADING MARKETS
FLORIDA
Analysis
Annett & Company
Limited, 335 Bay Street, Toronto 1, Ont., Canada.
—
(Special to The Financial Chronicle)
Mitchell
Singer Manufacturing Co.—Brief history—in September issue
Western
affiliated with Illinois
now
Mid-Continent
Manufacturing Co.—Memorandum—'Moore, Leonard
Lynch, Union Trust Building, Pittsburgh 19, Pa.
of
•
(Special to The Financial Chronicle)
Rockwell
&
(Colorado
1958
3,
Springs, Colo.)
With Illinois Mid Cont.
,
Plough, Inc.—Report—Ira Haupt & Co., Ill
II. K. Porter
29-Nov.
-Oct.
Pont, Homsey & Company, 31 Milk
Street, Boston 9, Mass.
La
Exchange, 234 Bay Street, Toronto, Canada.
Treasure
Parke Davis—Analysis—du
Corporation, 52 Broadway, New York 4, N. Y.
operations and measurement of life stock investment values
(Baltimore, Md.)
23rd
Hotel.
American
Carolina Electric & Gas, Associated
Sugar Refining, South
Holly¬
Quebec.
Securities Corp., 1
Exchange Place, Jersey City 2, N. J. Also available are re¬
ports on Three States Natural Gas, Delhi Taylor Oil, and
Big Piney Oil & Gas.
}
Trust
Preferred
at
Baltimore Security Traders
Inc., 79 Wall Street, New York 5, N. Y.
Over-the-counter Index—Folder showing an up-to-date com¬
Convention
wood Beach Hotel.
June 9-12, 1958 (Canada)
discussion of Stocks for Income with
a
(Hollywood Beach,
Investment Dealers' Association
Niagara Mohawk
memorandum
Market Review—With
the Homestead.
Dec. 1-6, 1957
April 23-25, 1958 (Houston, Tex.)
—
New York.
:
(Hot Springs, Va.)
National Security Traders Asso¬
Annual Convention at
winter
inghouse Electric and American Agricultural Chemical.
Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,
Japanese Stocks
the Commodore Hotel.
Nov. 3-6, 1957
Jan. 17, 1958
Broadway, New York 4, N. Y.
Monmouth
New York annual dinner dance
Annual
Appliances Co.—Analysis—Morris Cohon
Safety
>
Security Traders Association of
Fla.)
Corporation—Analysis—Harris, Upham & Co.,
Department S—120 Broadway, New York 5, N. Y.
Mine
,
(New York City)
ciation
Royal Bank Building; Toronto, Canada.
New York 5,
Stock Exchange
of
ing at Beverly Hills Hotel.
at
Gold Mines Ltd. — Analysis — James
Richardson & Sons, 173 East Portage Avenue, East, Winnipeg
and
(Lo3 Angelei,
Calif.)
Association
Oct. 12, 1957
Street, New York 4, N. Y.
25 Broad
,
Firms Board of Governors meet¬
Philadelphia 3, Pa.
Company—Analysis—Hayden,
1957
10-11,
•
Co.—Memorandum—Woodcock, Iless, Moyer
Co., 123 South Broad Street,
Maine
614% — Bulletin — Peter
P. McDermott & Co., 42 Broadway, New York 4, N. Y.
to Yield
Portfolio
Stock
Common
New York 5, N. Y.
Also available is survey
Titanium, and an analysis of Kaiser Steel Corporation.
Ilollinger Consolidated
Institutional
For
Witter & Co., 14 Wall
Oil Company—Analysis—Dean
Hancock
&
Analysis with particular reference to
Liggett & Myers and Philip Morris—Halle & Stieglitz, 52
Shares
Cigarette
Oct.
Street,
■.
,
Incorporated.
Wisconsin Southern Gas Company
—
—
Report
—
SECURITIES
The Milwaukee
Company, 207 East Michigan Street, Milwaukee 2, Wis.
Bank, Insurance Companies»
Industrials
DEPENDABLE MARKETS
Currently Active—
-
Northwest Production
Riverside Cement Co.
Bought
—
Delhi-Taylor Oil
Big Piney Oil & Gas
Sold
Special Reports
TROSTER, SINGER & CO.
Members: New
74
York
on
Request
GoldervSjTriangle
TRADING DEPARTMENTTELETYPE MM51
ALFRED D. LAURENCE!
&
Western Securities Corp.
Security Dealers Association
One
Trinity Place, New York 6, N. Y.
\Si Florida's
Invest in
Three States Natural Gas
DEMPSEY-TEGELER i CO.
Exchange Place, Jersey City, N. J.
COMPANY
IN VISTMINT SECU RITItS
201 S.E. 1st Ave. Miami,
Fla.
Telephone HEnderson 2-1000
Open-end
phone to N. Y. C. HA 2-0185
Phone: Miami, FRanklin
3-7716
Volume
Number 5676
186
.
.
The Commercial and Financial Chronicle
.
(1325)
Britain's Defense of the Pound
Assures No Sterling Devaluation
By PAUL EINZIG
Recent British
indicate to
measures
Dr.
Einzig that sterling
at
7% is but for
short period.
a
.
.
with
.
The economic
Eng. —One of the
disgraceful chapters in Brit¬
financial
history ended on
Sept. 19 when the increase of the
bank
7%
rate
was
nounced.
lent
firm
tion
in
other
ac¬
resist¬
the Gov¬
was
to
prepared
offer
stability
generally known facts, and
optimistic pronouncements about
conditions
the
of
country showing ignorance that
prosperity was simply another
for
was
trade
from
for
should
inflation.
unions
The
immediate
pressing
the
of
higher bank rate and of the
ac¬
companying measures—the fixing
of a rigid ceiling for the volume
of bank credits and for
capital
ex¬
penditure by both the public and
private sectors of the community
disappointing. Speculators
—were
the world
over
have
come
to
for granted that the Gov¬
ernment has not the courage to
it
hit back, and they viewed the sud¬
den
display of firmness with much
skepticism. They are still inclined
to believe
that, should unemploy¬
ment result from the tough meas¬
ures they would be toned down.
main
and
reason
why specula¬
business
firms
abroad
who are short of sterling have
adopted a "wait and see" attitude
is
that the success of the new
depends
measures
persist
in
their
plundering
outcome
the
on
of the trade unions.
If
response
the
community,
would
either
be
the
was
means
all
the wages inflation
series of major strikes para¬
lyzing the
The
economy
decisive
of the country.
importance of la¬
bor's attitude is fully
realized by
foreign speculators and others in¬
terested
in
London
correspondents
seas
banks
the
have
to report any
they
and
Should
of
been
sterling.
of
over¬
requested
advance information
obtain
can
claims
fate
about
industrial
wages
relations.
organized
admittedly dif¬
to
exercise
be
to
present
some
would
further
ures;
It
its
may
have
to
defensive
have
to
rein¬
meas¬
raise
the
full
employment,
only
itself
to
but
blame
labor
for
credits; it
may
their
have to reduce the
mature
forced the Government to do
curing political benefit
Governments
to be
ions
seen
will
action.
total issue of
a
of
Karnes has formed
Co.
Street
with
to
business.
offices
engage
He
was
C. Karnes
at
in
a
To be guaranteed
unconditionally
■. i
so.
from
It
to
1972, inclusive
as to
payment of principal and dividends by endorsement
by Seaboard Air Line Railroad Company
(Accrued dividends
4.25%
1959
to
be
added)
4.35%
1960-72
4.40%
Issuance and sale
The
of these Certificates are subject to authorization by the Interstate Commerce
Commission,
Offering Circular may be obtained in any State in which this announcement is
circulatedfrom only
of the undersigned and other dealers as may
such
lawfully offer these securities in
HALSEY, STUART & CO.
DICK
&,
MERLE-SMITH
BAXTER A, COMPANY
such State.
INC.
R. W. PRESSPRICH
FREEMAN & COMPANY
A. CO.
McMASTER HUTCHINSON A, CO.
the
WM. E. POLLOCK
remains
whether the trade un¬
follow a sensible atti¬
A,
CO., INC.
SHEARSON, HAMMILL A. CO.
September 26, 1957,
■
tude.
If they should be
prepared
to defer for,
say, six months, all
wages demands and demands for
shorter
hours, speculators
would
have
to abandon hope and
cover
their short positions in
sterling.
The recent measures have made
it quite certain
not
be
that
the
will
remain
that
devalued
limits
of
This
the
year, and
fluctuations
Utah Power &
from
emerge
Paris meeting of the O.E.E.C. Min¬
isterial Council. But the
question
of tampering with the
parities of
sterling does not arise.
repercussions
awaited
The
slump
may
disclose
the
of
First
Dated October
stern
Light Company
Mortgage Bonds, 5
Series due 1987
1, 1957
"
Due October
Price 102.29% and accrued interest
the domestic
economy
with some
on
buy these securities.
$15,000,000
It is not
Monetary Fund. More importance
is
attached
to
the
forthcoming
are
to
sterling will
unchanged.
would
measures on
offer to sell or a solicitation of an offer
offering is made only by the Prospectus.
an
this
its
meeting of the International
The
is not
The
dxpected itt London that anything
sensational
announcement
1, 1987
,
anxiety.
the Stock Exchange
some
weak
positions
leading to difficulties, but owing
to the absence of
large speculative
positions any trouble arising from
this direction is likely to be mod¬
erate.
The depreciation of Gov¬
ernment- securities
has
inflicted
The
Prospectus may be obtained in any State in which this announcement is circulated
from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
HALSEY, STUART A,
heavy losses
on banks, insurance
companies and other institutional
investors.
But the present level
of
these
securities
is
obviously
LADENBURG, THALMANN
NEW YORK
A, CO.
CO. INC.
"
HIRSCH A. CO.
HANSEATIC CORPORATION
WM. E. POLLOCK &
temporary, since the maintenance
period
is
almost
for
long
inconceivable.
costs
would
strengthen
ment
stocks
in
a
of the
at
all
Govern¬
comparison
"gilt-edged."
BURNS BROS. A,
STERN
GREEN, ELLIS A. ANDERSON
MULLANEY, WELLS A. COMPANY
with
being practically
The possibility of a
DENTON, INC.
CO., INC.
BROTHERS & CO.
SCHWABACHER & CO.
THOMAS A, COMPANY
PACIFIC NORTHWEST COMPANY
>
September 25, 1957.
v
»
Main
securities
formerly with
MATURITIES AND YIELDS
1958
191
Investors Diversified Services.
$16,350,000)
$363,000 annually August 1, 1958
has
to be regarded as
of
Pry or Street North¬
&
having
equities. During recent years firstclass industrial equities have come
volume
To
deplorable that it has become
necessary to abandon the policy of
ceiling
the
branch
a
(Philadelphia Plan)
un¬
bank rate further: it may have to
instruct the banks to lower the
for
26
M.
Harris, Up¬
—
opened
Equipment Trust Certificates
employment, and will, therefore,
reduce the scarcity value of
labor.
Moreover, the abandonment
policy of full employment
force
at
has
east
It is
tain
Government
Co.
under
the
management
William :H. R. Gould.
4lA%
measures
produce
of the bank rate at 7%
stability of sterling, the
Opens
HEMPSTEAD, N. Y. —Charles
Equipment Trust, Series R
any
may be
moderate.
more
labor refuse
to cooperate in the effort to main¬
the
office
business, and that
the
certain
ac¬
centuation of
C. Karnes
Seaboard Air Line Railroad
demands, they
to
Moreover,
are
of
the
&
.(Second installment of
-
it will encourage
employers to say
"no" rather than
press
them to
they should
determination
In¬
excessive
The
effects
Company, 407
realize
official
Up to the time of writing there
both cowardly and in¬ has been no clear
indication of
competent. However, it was better the attitude
of the political and
late than never, and the Govern¬
industrial sectors of the labor
ment deserves praise for its be¬
movement
to
the
Government's
lated courage.
Although the in¬ new measures.
The pronounce¬
crease of the bank rate
by full 2% ments made
by some of the
came as
a
shock to the city, all Socialist
leaders
welcoming resist¬
right-thinking people wholeheart¬ ance to devaluation were unusu¬
edly welcomed it as indicating the ally
statesmanlike, even though
encl of the period of complacent
they were inclined to aim at se¬
inertia.1
ham
J. Dole-
realize that the Gov¬
now
ernment
settle
the
of Filosa Securities
$5,445,000
that this time they will encounter
resistance they are likely to
inclined
on
ATLANTA, Ga.
Chronicle)
y
real
abstain
and
appointment of another and
yet another committee to inquire
name
the
the
into
policy
Once
to
was outworn platitudes,
formerly with FIF
JUNCTION, Colo.—
Main Street.
Associates.
Harris, Upham Branch
to believe that, after a
long period of hesitation,
reason
internal
the
prosperous
is
self-restraint during the "ask and
ye shall be given" period. If
they
the
were
vestment
GRAND
Jennie Dixon has joined the
staff
in¬
Month
ernment
attacks
investment
them
ance
sterling
capital
It
after
Both
and
(Special to Thk Financial
Chronicle)
merely preventing it from
increasing. The result would be
large-scale unemployment. There
demands.
only
external
for
ficult
long
was
month
Einzig
limit
overdue.
tion,
Michaels,
President, and Louis E. Written,
Vic e-President and
Secretary.
con¬
-
stead of
the Government is at last
prepared
to face up to this.
some
and
Corporation, Denham Building.
That
direc¬
The Financial
has
economy.
DENVER, Colo.—Alois
much too
or
strengthened
With Filosa Sees.
Inc.
do so."
equiva¬
some
a
interesting
Investors
formed
with offices at 500
Fifth Avenue, New York
City, to
engage in
a
securities business.
Officers are Michael K.
zal is now with First
International
an¬
measure,
Dr. Paul
to
been
The next few months
most
a
(Special to
policy of full employment which labor
itseff to blame for having forced the Govern¬
only
LONDON,
most
or
be
Qualified Investors
Qualified
With First International
a
ment to
tors
will
Bank rate
"has
The
ment loans.
siderably
nation to abandon the
take
many investors to reconsider this
attitude and to revert to Govern¬
certain to weather the storm
would emerge from it with a
considerably strengthened economy"
providing labor will accept the Government's belated determi¬
all
accompanied by
dividends
may
induce
year, and the present low level of
Government securities is temporary since maintenance of the
emerge
the
recession
in
period.
Given a certain
degree of goodwill on the part of
the industrial
workers, Britain is
writer adds that "Britain is certain to weather the storm
and
of
cuts
critical
will not be devalued this
ish
major
9
MACKALL & COE
The Commercial and Financial Chronicle
10
products this fall
into
1958.
The
and plastics, should continue to
extend their general field of use.
would, of course, be hasany signs of a general
upturn or by an outbreak of price
Fifth, despite widespread overexpansion, I believe that - there
will he more increase than de-
increases.
creases
qheinical
some
and
Outlook (of Chemical Sales
f
Thursday, September 26, 1957
...
(1326)
process
tened
LOGAN*
By JOHN O.
j
Vice-President and General
Industrial Chemicals
Manj^g-ef
Division, Olin Matbieson Chemical Corp.
increases.
In any
beginning
to make
everyone
is
talking
and
thinking
sure
from the
five..
thing.
First, present indications, despite
the stock market's jitters, seem to
point to another year of good gen¬
eral business in 1958.
Opinion as
I
to
outlook, while not
overall
the
be
dis¬
unanimous,
cussing
the
continuation of something close to
chemical
in¬
present
levels
its
softness
in
shall
in
dustry
broader
classifica-
the
tion desig¬
nated
the
U. S. Depart¬
by
e
m
r
Logan
as
e
c
O.
John
"C h emicals
and
Products."
Allied
grouping includes not only
industrial
chemicals
category, but also plastics, syn¬
thetic
fibers,
synthetic rubber,
drugs,
paints, fertilizers,
vege¬
table and animal oils, and a num¬
ber
of
smaller
miscellaneous
This
the
groups
toilet
Sales in
were
period
similar
the
of
expectations for
the second half, according to a
recent survey by the Manufactur¬
ing Chemists' Association, are for
a 10%
increase over the first six
months.
If performance matches
these expectations, sales for the
year will be close to $25 billion,
or 9% above 1956.
This will con¬
Industry
1956.
tinue the succession of new highs
set
the
by
every year
chemical industry in
since 1939 except two
—1949 and 1952.
•
extension of
this uptrend into 1958, in my opin¬
ion, is good. I do not look for any^
thing sensational, such as the 18%
jump from '54 to '55, but I think
the gradual increase that has been
under way since then will con¬
tinue. Specifically, I believe a rise
in the general neighborhood of 5%
is
chemicals
dollar sales of
reasonable
a
expectation
for
1958.
My reasons for this
•An
National
Sth
"tempered
Mr. Logan before the
Industrial
Conference
Board's
address
Marketing
City, Sept.
replacement costs in 1958. Lower
0perating levels in many plants,
ag a
resujt of increased capacity,
w-jj
proportionately higher
mean
overkea(i
charges
pulp and
points.'
^ "
.
national pro¬
year since
every
inventories
paring
distributor
and
converter
as
amounts
dyes
*
'
'
,
A
.
and it also takes large
of resins, coatings and
chlorine,
good
j
;
.
f
:
by
Conference,
New
product is greatest demand shoots
>
v
raDidlv
p
pinning hopes on an automobile
upturn in 1958. While the chemical,;
industry will not be as directly
affected as some others, any increase in new ear production will
be reflected in increased demand
.
Thus on the whole, even in
lines' where expansion has created - highly competitive conditions, I believe .we will see few
chemical price decreases in 1958
paints, rubber, plastics, syn- and very likely some increases,
for
metal cleaning
and
fibers,
thetic
chemicals, to mention a few.
y
-
;
.
Summary
t.
.
:
then,
no
-
significant
*
depressed chemical conindustries include agri-"'
Other
suming
name
the
pinch but also of the
money
"
;
ventory liquidations,
.
Serves
r
Stimulant
as
recoveries
(3)
modest
certain .depressed
in
should;-!"du^iesiJ4),, gr?w£h o£;1
The fourth factor which
and
Detroit
Jr.
s.
R.
Livingstone
of the latter.
holds
which
The firm,
membership in the
Midwest1 Stock1 Ex¬
will
changes,
continue -/in" the
Penobscot Building.
>
Charles A. Parcells & Co. is the
of
member
oldest
Stock Exchange,
It acts as
1919.
tributor
and
Detroit
the
having joined in
participating dis¬
dealer in municipal,
public utility, railroad, real estate,
government and industrial stocks
and bonds, and as odd lot dealer
on the Detroit Exchange.
Officers of the company will be 1
Charles A. Parcells, Jr., President; ■»
Charles E. Exley,
President;
Executive ViceR. Living¬
Seabourne
Charles
B.
Crouse
and
Clifford Verral, Vice-Presidents;*
stone,
W. Voelker,
Iva
Secretary-Treas^ \
Earle W. Parcells, Richard1
Schmansky, Assistant Treasure",
urer;
E.
William .L. vDest,
and
Secretaries.
Assistant
*
i
J. L. Sunderland
lines,
North
403
in
a
16th
Street
to
engage
securities bLisiness.
(5)
,
r
level.
believe
I
a
we
may
be
com¬
-
Shelby Streets.
long lived.
above 1957 sales.
25%
Now, I am quite aware—in fact,:.'
occasion i I
have been quite
situation of this kind in
painfully aware—that additions, to
plant capacity do not automati¬
cally create sales. But it has also
been my experience that there is
The Comptroller of the State of New York
will sell at his office at Albany, New York
ment of
(Eastern Daylight Saving Time)
a
$24,000,000
see
uses
new
STATE OF NEW YORK
Dated October 15, 1957, and maturing as
how
being
ment
of
follows:
$1,600,000. annually October 15, 1958
sis
placed
Principal and semi-annual interest April 15 and October 15
a
sold, this announcement
matter of record only: "
"
v
effect
the
devel¬
on
sales
develop¬
commercialization
results in 1957 than
DALTON FINANCE, INC.
Class A
Common Stock
before, and that this empha¬
in
from
new
be increased
Examples
of
will
1958.
which
should
markets
in
benefit
1958
are
polyethylene
(pipe),
synthetic
rubber
(auto
springs),
lithium
and boron compounds (high en¬
.
payable at the Chase Manhattan Bank, New York City.
-
fuels),
and
urethanes
There are many others.
In
addition,
several
of
the
stronger growth elements in the
ergy
appears'-as
the
probably
products
September 24, 1957
r
impossible to fore¬
much
and
further
1972, inclusive.
application to
of theie shares having been
267,000 Shares
is
it
research
ever
Comptroller, Albany 1, N. Y.
'
and markets for
opment of new markets is going
to have on 1958 sales, I am cer¬
tain that there is more emphasis
MENTAL HEALTH CONSTRUCTION (SERIAL) BONDS
upon
All
-
chemical.
While
Descriptive circular will be mailed
<
nothing quite like an idle plant to
put a forced draft behind develop¬
October 1, 1957, at 12 o'clock Noon
Dated:
,
111.—Joe L,
Sunderland has opened offices at,
MOUNT VERNON,
.'
on
ARTHUR LEVITT, State
-
Joins Raker, Wal«h
chemical industry in¬ serve as a stimulus to chemieai
y .
1 chemicals ami
to a period of general over-expan¬ sales in '58 is the industry's
(Special to The Financial Chronicle)
record;. Pnce ceases in some
sion as a result of record-breaking capital expenditures of the past
"Any drop in general business
CHil;aGO, in.—Koyai n. Pet¬
construction in 1956 and '57.
two years. Expenditures for new would, of course, modify the pic- erson has become afifliated .with.
It has been our experience in plant in 1956 and '57 will total ture
accordingly. -By <the same Baker, Walsh & Co., 29 South La
the past that during periods of in¬ about $3.3 billion, or 13% of an-r token,
He was formerly;
a
general upturn in the Salle Street;
ventory adjustment there is usu¬ nual sales. The rule of thumb in economy would spark a propor- with Barclay Investment Co.
the
chemical
industry is that $1; tionately greater increase in genally a tendency by buyers to overcorrect, with the result that after of new plant will generate about eral sales. And it would take a
With MernH Lvnrfo
a
short period of attempting to $1 of annual sales. On this basis, spurt of only 15 to 20 % in sales in
(Special to The Financial Chronicle)
capacity
of
the
chemical
industry
1958
to
bring
demand
for
chemioperate with inadequate margins,
DETROIT,
Mien. — riore
P.
will
be
in excess
of estimated cals again in balance with supply,
buying ahead is resumed on a
sales by about 15% at the end of The experience, of the past has Grattarola has been added to the.
modest scale to bring supplies on 1957.
staff
of
Merrill
Lynch,
Pierce,
By the end of 1958, capacity been * that over-capacity in the
hand up to a more; comfortable will ha^e risen to a level about chemical industry is seldom very Fenner & Beane, Congress and
ing into
to
r*
Opens
(Special to The Financial Chronicle)
.
policy of inventory liquidation.
This has been a result not only of
a
Parcells,
A.
ers; John A. Hancock; Aaron E. •
Ell wood,
Peter
M. Macpherson
.
To summarize, I look for chemical salesAo show continued progculture, residential building, and ress in 1953, with a good chance
favorable chemical sales outlook non-ferrous metals. While the out- of-the dollar figure for the year
higher than
is what appears to be an abnor¬ look for these fields in 1958 is less ending roughly 5%
mally low level of customer in- clear, it seems unlikely that they 1957. This is based on (1) a conventories.'For some months chem¬ will show further large declines," tinuatioffi of 'good general busi-:
ical buyers have been following and an improvement is possible.;, ness, (2) completion of buyer inAssuming,
change in general business in 1958,
the second factor in support of a
York
19, 1957.
j,,'
chlorine and "caustic soda. Wnen
the ^demand balance for such coproducts is upset as often happens,, in- times of below-capacity..
operations, the cost burden on the
_
businessmen are
many
break-even
V "
some line^ still further cost
pressures will be created by 1mat the balances in demand for products
levels, produced concurrently, such as
of caustic soda and
consumer
a
.
tend
C.
the
.
than textiles
Paper is even larger
will
and
rising
expose
after
II.
War
with
under
com-
entry of the
The prospect for an
in total
World
m
caustic
earlier this year experienced
a period of marking time, but now
appears to be pushing ahead again
This is because
diversified chem¬
gross
almost
in
& Co.,
9%;
only
were
1947-49 average,
the
paper
capital goods as well as
consumer goods,
hard goods and
soft goods, staples and luxuries.
There has been a strikingly con¬
sistent relationship between chem¬
ical sales and
as
synthetic fibers them-
While not in a slump,
dustry:
duct
1
chemicals
selves.
products find their way—to
a
remarkably uniform degree —
into literally all branches of in¬
4%
in
-1
u111!!11
the various
ical
1957
1957
of
half
first
^
mand lor such
eral business trend.
the thousands of
consolidated
Spjraj promises a further increase1
-n
raw material
and plant1
would
soda, chlonne, dyes, sizing and
finishing materials, and, of course,
closely than
realize to the gen¬
persons
many
be
Parcells
tured- goods prices. Profit mar- •
gins of the eight largest chemical'.,
possibilities
upturn in 1958, which
for an
industry is tied more
such as
printing inks,
preparations and the like.
ahead
by
would seem to present
growth rate, the chemical
average
Dollar sales of this grouping for
the
a
the gen¬
eral economy is of great impor¬
tance
to
the
chemical picture.
Notwithstanding its better than
large
will
Co.
Charles A.
ing off inventories
of finished; companies declined 10% in 1956
cloth, and that recent production and were down another 14% in
rates in the industry have been the first half of 1957.
below actual consumption.
This
Continuation
of
the inflation
This base provided by
ment of Com-
Effective
pared with 17% for all manufac-
much lower, that considerable
progress has been made in work-
with
offset
lines
prices
chemical
above
not likely to
their operations are
&
—
1, S. R. Livingstone, Crouse
June, the last month for which
figures are available, wholesaler
opinion among
to the effect that
growing
makers
textile
pick-ups other., Few of the eco¬
nomic seers are predicting a gen¬
eral recession, and none has rash
enough to suggest a resumption of
the boom on the 1955 scale.
sense
specifically
—
activity,
of
some
favor
to
appears
a
go
Optimistic Factors
that
the
about
same
optimism" — to borrow a phrase
journalists—are basically
discussion of the chem¬
industry, I have found that it
is usually a good idea in the very
which industries are
of chemicals,
recovery in 1958.
these is textiles. We have
consumers
One of
Oct.
Price Outlook
will show some
found
Mich.
DETROIT,
increase in dollar sales for the
Prices of chemicals have not
kept pace either with rising costs
or with prices in other fields.
In
and
cently,
Charles A. Parcells
in chemical prices in 1958,
year,
recessions re-
private
own
sizable
above 1956.
ical
an
possibility that certain industries which have been undergoing
their
Livingstone Crouse
To Merge With
and that these will contribute to
a
the
9%
Sees 1957 sales approaching $25 billion, or
of
chemicals is
continued uptrend in
substantiate his forecast for 1958 of 5% increase over 1957 in dollar sales of
chemicals and allied products. Mr. Logan claims there will be
few chemical price decreases next year and very likely some
j
by
The third factor in support
Chemical executive supplies reasons to
1
Continuing
"
(paints).
industry, notably synthetic fibers
McDonald, Holman & Co. Inc.
Volume
186
Number 5676
*.
The Commercial and Financial
Chronicle
.
.
(1327)
800,000 in
500,000. Now
•
By E. C. NICKERSON*
,
East coast railroad official calls for realistic
readjustment in
service. after declaring that the best
possible
service at the lowest cost, public
interest,
opposite took place.
Proposes
solution to the
a
>
<
-
v
:
;
•
carriers who
manager has many and varied
1951,
1956.
price their services ■1;
He is responsible to the
cost
under
to
Just
prior to
what
post
-
the
war
year
studies
public
to
find
wanted
passenger
for
equipment.
were
prepared
to
competitive free enterprise profit1
ascertain market
requirements and
system.
preferences.
He
is
who
responsible
work
for
his
to
rode
those
provide maximum job opportu¬
nity and security.
He
is
responsible
vestors
that
in
to
the
All
ests
three
must
of
unless
basic
served.
,
are v
busi¬
-
vital,
,
'
.
f"
fp?ii§
healthy and
profitable un¬
der the free'
and
We
•.
the
for
with
enterprise sys¬
tem.
results
im¬
an
not
and
improved
spent
New .York
dieselized
the
motive
objective
of
:
V'
American
done
.V
proves
that- it
has.'
.
for
more
E. C. Nickerson
modern
the
requirements
of
the
various segments of the public, to
the extent of its ability. This is the
objective
thus
the
the
as
general
interest, and those who
with
protecting
are
public
charged
that
interest. A
to produce
reasonable profits, sooner or later
fails to produce any product or
service, job,- opportunity, or inbusiness
which
fails
vestment return.
-.,
*
-
-
-
Within this framework, a mana-
is
continually ^ faced
with
answering the question "What do
ger
do now?" In other
we
words, makOver the years, his
ing decisions.
decisions must
prove
far
than wrong,
is
times
more
to be
even
a
be
on
he
which
has
to
or,
if he
in fact,
at all.
manager
Basically,
tions
to be right
good manager,
a
two
base
his
on
what he knows and
about
foresee the future.
can
Then
to
weighing
a decision
which becomes tomorrow's action.
-
i
Let
*.
tral's
at
us
-
the New York Cen-
passenger
some
First,
-
apply this decision-mak-
process to
of
the
service
and
factors
involved,
look
will turn to summarizing
record; than take a look at the
future.
we
the
,
In
going back over the record,
three periods stand out: 1946 to
•,
during this period, and
1 regret to
say that increased wage
rates
and
material
be
way
of life
of
a
costs
in
seem
this
to
country
ours.
over
tends to lead to
conclusion.
these periods
rather unhappy
a
When
we
——
-
In
analyzing
•
revised
were
and
spent
sub¬
take
more
have
today.
these
factors
rials
are
situation,
I
results; to
into all the contributing factors
between
new
the
restricted this
ceiling
were
on
to
time
relate
than
to
a
to
will
drive
and
more
wages,
which
roads—
which
a
to
it
and
more
subsidize
more
passenger
service
from
declining
freight
earnings. A state legislature which
passes
so-called "full crew" law
decision which may,be
a
makes
a
must
on
the rates and fares
allowed
we
to
has
a
railroad
business
decision-making
job—but
decisions he makes are often
dictated by forces beyond his con¬
ules would
eventually reverse the
trend. ;But by the end of 1948 it
them,
to
50
billion
system
free
dollar
which
tax
and
be
free,
a
system of freeways
structed in a whole
both
toll-
41,000
mile
to
appalling : was
jump in passenger
service
or
into
ducing item and
A
state
tells
a
us
a
doom
structed in the
history of man. I
would like to quote from a recent
advertisement
of
a
firm
loss-pro->
that
its future. makes road building equipment. V
•
regulatory agency which
we
cannot expect to
reasonable
rate
of
earn
return
on
passenger service,
and an ICC
which tells us it has no
obligation
to
approve
rates
which
could
make a 6%
return
making
possible are
decisions of far-reaching
consequences, and forcing us, with
such factors to deal
with, to make
hard, but vital decisions on our
decision-making
take
a
process*
let us
the
immediate
look
at
and
prospects
present
for
the
future.
There
—
Future Prospects
has
been
alongside
a
the
York
New
tax-free,
new
three states of
York and Ohio
over
D/2
whole
in
laid
in .the
family
from
Bonds.
? down
Central
of
whole
a
state-sponsored,
thruways.
In
the
Massachusetts, New
alone, the cost
was
billions of dollars—for
new
direct
wage
increases.
from
passenger
In
1947
service
a
transportation system
competition
freeways that
all
48
states,
large
will
smaller
and
ones.
This
over
$168,000^000; for
modern equipment and our losses
209
from passenger service
$24,000,000 per year, a rather
unhappy business experience, to
the least.
far
-
the
as
with
In
this
ture,
we
upon
us
The
look
same
see
a
new
petitors,
into
almost
new
age
cerned, the
is
con-
passenger deficit
is
Central did not operate
any.
our
com¬
the
an
even
airlines,
these
jets
were
ernment
of
these
planes
expenditures.
taxpayer
now
they
can be
use.
To
prove
ways,
more
are
these,
and
present system
expense charged under the
s formula. So in our
case,
the passenger-deficit
Pnantom.
is
-
,
no
.
Continued
on
-
Mortgage Bonds, 43A% Series due 1987
Due October 1, 1987
in Detroit, Michigan
Price 100.639% and Accrued Interest
Copies of the Prospectus may be obtained, from only such of the undersigned as may legally offer these Bonds in compliance with
the securities laws
,
of the respective States.
•
Frankly, this
was a period of attrition and adjustment: our losses
become so great that there
MORGAN STANLEY & CO.
had
was
low.
no
alternative
Our
operations
stantially reduced.
new
course
passenger
to
were
folsub-
Practically\
cars
chased, and generally
were
our
pur-
from
P^nger service operations
passenger
deficit
$54,300,000 in
decreased
1951
to
EASTMAN DILLON,
VNiqN SECURITIES & CO.
GLORE, FORGAN & CO.
Al-
though our revenues dropped dufing this period, so did our loss
Di-
DREXEL & CO.
no
service
was substantially readjusted.
BLYTH & CO., INC.
$37,-
KIDDER, PEABODY & CO.
September 24, 1957.
that
to im¬
of air¬
the government will spend
hundreds of millions
solicitation of an offer to buy any of these
Only by the Prospectus.
'
1 1
or
these
at the point
adapted to commercial
handle
our
Because
dollars,
nor a
April 1 and October 1 in Xew York City
hun¬
dreds of millions of dollars of
gov¬
£en&er service, its savings in exwou^ a^ least be as much
Commission
fu¬
jets will give
a
pas-
the
immediately
in air travel.
greater advantage in speed, and it
the
Dated October 1, 1907
Interest payable
Central
our
many
of the
boldest construction
job ever cone'eived by man."
increased
• over
say
First
of
many,
is part
Consumers Power Company
;
through
race
serve
cities
$35,000,000
In summary, the
experience of
the period from 1946 to 1951
was
spent
offer to sell
The offer is made
$30-
was
and
car
danger your life. You'll be travel¬
ing on the Interstate Highway
System—a network of multi-lane
loss
our
100,000; but by 1951 the loss had
jumped to $54,300,000, an increase
of $24,200,000.
—we
an
<
to
practically any state in
the nation without a traffic
light
to delay you or a crossroad to
en¬
developed
*
substantial portion of
system
new
"Hop
drive
should be remembered that what
Present
This announcement is neither
expenses, which resulted
the first post-war rounds of
con¬
federal
highway system. This
will be, I
believe, the biggest new
transportation system ever con¬
more
service
be
new
interstate
clear that most of the decline
traffic was permanent in na-
Even
the
super-highway
will
was
the tremendous
take
necessary to adjust their
operations to changed conditions.'
Looking further ahead, we see
that we are on the threshold of a
politically palatable, but which
change
a
self-supporting
manager
the
permit
action
decision, incidentally,
makes
difficult
squeeze
we
should
more
we
government-imposed price
ernment
charged with the re¬
sponsibility of regulating the
railroads, in my humble opinion,
an
taxes
-
Primarily, however,
spiralling costs of mate¬
and
a
The
serv-
ice, hoping that new streamlined
equipment • and improved sched-
th.'AN.,Ldnda7'L.b^i":-nN^k^roade'a„™ £°m
The
jjtiiities Commissioners, Great Lakes
Vision, Greenbrier, Sept. 10, 1957.
excise
carrier
freight and
transportation is, in a
negative way, making a decision
train
us
wartime
common
may
that hit
self-supporting
systems, an essential for the pub¬
interest, the agencies of gov¬
lic
Now for the 1952 to 1955
period.
-
Turns to Central's Record
,
ing
.«
from
operations was
increase of $10,700,000 over the prior year. We
just could not keep up with the
increased wage and material costs
schedules
tomorrow,
these factors he makes
-
pro¬
an
deel-;-ref* °fie* ^ detailed study by;coniPatent people proved that, if the
First, he can look at the
previous record and present situatjon; second, he must endeavor,
determine
this
loss
our
the
that
.
pay,
So
founda-
sions.
based
1956
find
token private indus¬
action of government. If
railroads
are to be
healthy,
passenger
$48,500,000,
In addition to buying new equipment, Central planned substantial
service revisions for the post-war
period.
During
1946
and
1947
of the .■ manager,
and-in
interest is pretty much ture.
his
same
respect
on
must
we
Congress which fails
freight to private carriers, with
unhappy consequences to the rail¬
a
successful; for the first
In
which
repeal
passenger .service
go
We tried to hold the line
civilization. It is only under these
that
a
business
can
-
service?
to
time,
added.
charge, and resis¬
Despite irri-;
tance to realistic readjustments in
equipment .'and
service,'
the service we render.
however, traffic fell off heavily.
conditions
meet
one
sell
on
same
fortune
proved:
other "in
any
the
crease,
but what do you think
happened to net income from the
have
efficiency.
Conclusion Obtained in J.948
trains
its people than ',
pur
In
was
would
yr
people; the
serv¬
time in many years our
passenger
revenues
showed an in¬
power,
improving
believe in that
record
on
1956
rearranged
service between
small
a
of
but
our
Looking back
the
sion
same
try which may be sorely affected
by this action should be permitted
to
adjust
itself
fully
to
the
changed conditions created by the
enough-tickets- in-Cleveland to
for the cost of
operating the
terminal there,: is
making a decL
pas¬
invested
service and
all
system as the
best for the
the
much
only held the line
curtailments
.
war,
can't
wants; but,
by the
pay
pro¬
apswer. A
and
railroad. I think it is
right that
these facilities should be
built, if
that is what the
public
authority
approximately stantial sums of money and vigor¬
$168,000,000 in new equipment for ously promoted our
service, we part.
use in its passenger service, in- increased
our
losses.
When we
In the realm of decisions
such
eluding both cars and locomotives. contracted,
we
decreased
our
as these, made not
by the railroad
We
spent
'
virtually all of .this, losses.
business managers but
by govern¬
money for modern,
streamlined,
ment, and in considering our own
v, »
!.
Squeeze-Play
semi-lightweight type equipment,
none
,
researchers
interviewed
result of this
program, fol¬
a
lowing
inter¬
But
.
uLd
~
a
is
ness
As
Central
these
be
planning.
•
v
'
„
imioe*
in¬
the
property and facilities.
and
portant guide, not only to
Central,
but to other railroads as
well, in
post-war
passenger
equipment
company to see
reasonable return is pro-.,
on
the
investment
in
a
vided
Trained
trains
passengers.
The tabulated
of this
survey served as
to
company
the
:■
to
answer
1955
which
tax-exempt bonds to
double the'
capacity of the Cleve¬
land Airport, while we
more
service
1946, the Central
Questionnaires
the
the
1
exhaustive
out
and
\
being
authority
which floats
deficit.
gram.
1955,
7
made
com¬
pany's customers to provide the
best
possible
product
at
the
^lowest possible
1952
was
strong promotion and advertising
campaign to back this service pro¬
doing business.
responsibilities, but fundamentally
they are these:
the
late
gram
A
pas¬
improving and
ice
we
helped
less than full cost of
at
-
1951
circles between
some
major centers. At
increasing wage-material costs and the government im-posed rate ceiling. A state of affairs said not to be
by competitive subsidized
In
we
tween
any
catas¬
our
taxing
our franchise
tax on the
tunnel into Grand Central
Termi¬
nal is
making a decision which
causes us to ask if
Grand Central
worth it. A government
Not¬
Central
1955 for not
was
,
senger
'•
be¬
squeeze
and
the
A
doubles
$168,000,000
improving
aggressive in
this
declined when the
on
.
moting its passenger service—that
•V
explains the factors prompting the conclusion that the traffic
decline was permanent in
nature, the passenger deficit is no
phantom, and losses increased with vigorous promotional •
and
1951
>
almost
*
trol.
$16,-
of the 1946 to
service,
criticized in
and —
triadism, and
spent
senger
/
reasonable return, are all part of the same triad.
Mr. Nickerson
reviews New York Central's efforts to
fulfill this
efforts and substantial
investments,
was
'
passenger
passenger
.
the
when ; over'
,
of
1956 record.
trophic results
period
drop
a
•
withstanding
Vice-President, New York Central
rail
1955,
for the
11
SMITH, BARNEY & CO.
on
page
air-
36
The Commercial and
Financial Chronicle... Thursday, September 26,1957
(1328)
12
about
have
-We
$31 'billion
of
cherished possession, and ponement of the real monetary is- banknote circulation: - in addi¬
standard of value and sue for as late as possible a date,
tion, there are about $220 billion
wealth for countries and indivi- The major question was and is the of bank
deposits.
This total of
duals.
The Knights of the Cru- maintenance of full employment,
$251 billion is "backed" by about
sades did not want to free the And
in any discussion of this $22 billion of gold. The layman is
Holy Land from the Turks—they problem, the value of the dollar told that such a cover is sufficient
and is a
Developneat of Gold by
U. S. Monetaiy Policy
PICK*
By DR. FRANZ
World Currency Report"
Publisher, "Pick's
City
New York
Gold miners
are
advised by Dr. Pick: (1) they do
became
"not have a
picture in sight" since a
Queen
nanced
p0se
When
served
of
of
exclude
tory progress
of the United
mineral
states,
gold — statis¬
tically speak¬
ing — plays
only
role. The value
year's
last
of
gold production, about
$65,000,000, or
condensed
jri-cnz
rick
Its value is less
day's volume of
transactions
on
the New York
Stock Exchange.
It can also be
defined as 1/70 of 1% of the Gross
4V2
high.
feet
than
average
one
But, even if the U. S. gold pro¬
duction were much smaller, or let
whether
like it
we
or
not, influ¬
It is,
nation's destiny.
this
ences
gold,
non-existent,
suppose
the constantly
functioning monetary conscience
of the globe. It is also the obses¬
if
I
say
may
sion of the
cial
so,
same
110
or
120 finan¬
administrations that rule the
savings and the accountings of
individuals, corporations and nat¬
urally, of governments.
To have
*An
Utah,
1914
Financial Honesty Died in
with its then sensational expenses for. destruction,
ruined the idea of financial honWorld War I,
nationality or geographical
location—cannot rule by reading
as
to
by Dr. Pick
Mining
Congress,
Sept. 11, 1957.
con¬
a
before the
Salt Lake
bondholder
the
became
Paying would have caused a lot monetary system. Secretary Hum¬
trouble,
as
it would
have phrey, with his well-meant. but
brought about a constellation that ill-timed statement, will only con¬
tribute to a more or less acceler¬
is, in general, called deflation.
ated withdraw of gold from the
Declaration of nonpayment would
have caused even greater hard-
tent
cepted part of civilization.
gold stand¬
ard in the late '20s of this cen¬
actions, they simply have to be as
cynical as possible. This basic fact,
familiar to every student of mone¬
tury
history, is never taught in
schools, which have to avoid such
down
to
earth problems that
might give some wrong ideas to
ling, the end of the gold standard
was virtually sealed.
The United
children of all ages.
private possession of gold. Forcing
a "packed" Supreme Court to le¬
and
Bible
tary
Timid returns to the
When
on
Sept.
hold
for
long.
21, 1931, Great
devalued Ster¬
States, in an amateurish currency
reform on March 6, 1933, outlawed
Gold, at all times, has bothered
legislators. It has had more pow¬
er than the rulers who
exercised
whether they were emperors
people's commissars. There has
been enough of the precious
metal around — neither for the
never
sovereign prince nor for the people.
it has been
.
falsely
blamed
of the
All
of these shares having "been sold, this
appears
as
a
matter of
record
announcement
only.
psychology,"
labor
on
as
inflation,
well
as
it
only
can
legislators.
liked
have
would
is
on
Managed
Turbo
Dynamics Corporation
Common Stock
(One Cent Par Value)
stability
was
aban-
It is true that efforts were
value of the
as long as possible
falling too fast. The different
regulations
concerning the
domestic price level, with all their
shortcomings and gigantic gray or
black markets, may still be remembered bv many of you. The
Paper Dollar
from
opinion,
be referred to the
If they
would not
it, they could have
government thinkers and many
specialists of the gold mining in-
"siphoning off" of so-called exces-
Offering Price $1.00 Per Share
Underwriter
Simmons
&
Co.
(Successors to Harry Simmons Co.)
40
Exchange
WHitehall
Place
4-2667
New York 5, N. Y.
Teletypes: NY 1-4581-2
sive purchasing power by making
inillions of people buy billions of
They all have discarded
considering gold as an
in
important factor in monetary
matters. These outsiders, pray^g for and counting in paper
dollars, have been victims of antig°]d propaganda and believe that
gold has to be discarded in any
consideration of monetary problems. They have fallen for Lenin s
according to
which gold should only be used
tor the construction of urinals m
the streets of large cities,
famous
opinion,
government bonds also may still
But as we, in this country, also
rejoice those present here, who carry some monetary responsibilbought them with "good" dollars ity for the remaining parts of the
and still have them today. In this globe, all published government
administration of a shrinking pur- opinions concerning gold are not
chasing power of our currency, the
full expresson of official
the
monetary managers of the thinking. In spite of having erased
country could not burden their the gold idea from the thoughts
thinking with ethical considera- of 99% of the domestic popula¬
tions.
1 :
1
tion, we cannot erase it from the
Therefore, they had to set their
a policy of cynical post-
minds to
thinking of 1% of our citizens
from public opinion abroad.
the
be sur¬
and
reach such
we
a
gold em¬
stage forcing a
the U. S., we will con¬
tinue to play as if we were finan¬
cially sound. We will try to for¬
get about gold and will—without
preaching it — continue to favor
the domestic debasement of the
bargo
tjfle idea of "managed cur- dustry, do not interest the man
repcy," dtame to an abrupt end in the street, the banker or manu-
made to prevent the
before
But,
critical
monthly
doned.
over
vidual.
,
the idea of
all
up
to see the moratorium—if
appliecfc-followed by currency re¬
strictions, prohibitions of capital
export and many other measures
of financial torture of the indi¬
needed.
facturer.
Mr.
prised
As we depreciated—for the sake
not
the of full employment and of con¬
stant prosperity — the dollar, we
adoption of the system of "man¬
also debased the gold price. This
aged paper currency" began.
A monetary masquerade started. PaI"ity» still defined at $35.00 per
Hopes were high of carrying it to ®u,nc®\ ls. unfortunatelv an absoa
happy end.
But governments Jjj'te iljusuon. T;f ^
3 Qh it in
always have to be optimistic. If
dollars, it is
they were not, nobody would buy only $i6.95 an ounce, ine aamintheir; "certificates of guaranteed istration
publishing a
confiscation," as I have to call cos!;
in? index, has thus far
government
bonds.
The
1934 f5;slste?, aPPlying
officially to
"Paper-Dollar" remained respect- the g0^ Pllceable only until the end of 1939.
Such facts, concerning only top
when Wotid War II started.
spring
country and I would not
of
300,000 Shares
11 y adopt
mediately cut in its value by. an
additional slice of 10% or 20% or
more.
Black
markets; of
gold
stopped the procedure. But dor
such
a step a lot of knowledge
and
courage
was
and
still is
period of about five years,
constantly praised by high priests
r e a
Humphrey's suggeston. the dollar
would dip overnight in the world's
free markets and would be im¬
according to my personal
This
ISSUE
called
of
lack
through
we,
skill and lack of ele¬
knowledge
of
"gold
mentary
management. Let me tell you that
,
NEW
Should
monetary
debasement of the monetary
unit,
^
U. S.
galize the new rule by a
exactly
shining
decision,
it,
And for this reason,
not
could
Britain reluctantly
-
-
a
promising statement for the na¬
that had confidence in our
tions
ac¬
an
applying the Ten
Commandments to each of their
the
exactly
not
is
moratorium"
would have been tan-f
or
conscience is
address
American
City,
a
version, we would not allow them
to do so. Such a menace of a "gold
short all things that
The gold ships, as it
the Holy Scriptures condemn. And esty of governments.
standard died for good in 1914, tamount to nothing less than a
at;the risk of making one laugh,
when the first modern legislation state
bankruptcy. So we chose
ethics would also demand that one.
of
non-convertibility
of
paper the easier solution.
was a
of these old Double Eagles should
still be worth 20 good dollars, in¬ money was created in Germany mixture of
and Austria and rapidly adopted debasement
of currency value,
stead of 40 to 42 paper units.
in France, England and later in popularly
use
\ And this is the basic story of
the United States.
The inflation- co®t °-\ living.
the gold problem.
By this policy we kept the illu¬
ary orgies in Europe lead to the
sion of the 100 cent dollar alive,
pitiless punishment
of all the
Sees No Ethics In Government
suckers, who in earlier years had but we reduced
Would we have observed the
lent their savings to their govern- goods or services that this
laws of ethics, such as they have
ments in order to be left holding could buy.
And we did so
with this policy that the dollar of
been
taught
in
institutions of
absolutely
worthless
paper 1939
today buys only about 49
higher learning for nearly 10 cen¬
adorned with high fidelity print
cents
of
what it purchased
18
turies, it would not be necessary
o£ meaningless promises to pay.
to talk about gold today. But, as
From then on,
expropriation of years ago
governments—without distinction
This policy of slow but persis¬
National Product.
us
corruption
recent
a
in the Senate, Secretary
George M. Humphrey, probably
to
his
own
regret
afterwards,
stated that if all these govern¬
ments would ask for the gold con¬
hearing
the amount of
dollar
well
yellow metal, could
into a cube about
58 tons of the
be
Ethics
monetary
of
called the
minor
a
window
gold conversion of their
assets in the U. S. In
circulation. Banknote issues
modest proportions
in those days, believe it or
monetary leader¬
time, demand the immediate
any
That
both tactics; the wilful
production of
our
favoritism/,
>
theoretically de¬
milligrams of
dressing for the uninformed. It
ship.
of foreign gov¬
Accord¬
ing to the Gold Act of April 1934,
these foreign governments can, at
of rather
fidence in their
dollar deposits
ernments in this country.
000;°'U0 " i8nT
fine
gold
or at 35 papei dollaisThis
per
ounce
of the fine metal.
definition is some sort of
S.
gold stock is mortgaged by any¬
where between $9 to $13 billion
Jj,as become absolutely obsolete,
£he reason for it is rather simple,
and
Having been faced with gigantic
not, the main ambition of a min- expenditures during the war and
ister of finance was to be honest V0*1™* years*ad to /?eci<Je
and
not to cheat for his own whether we wanted the nation to
pocket or for his government's
J™ them or whether we
glory. Therefore, people had con- to
wanted
to shift
their payment on
the next
generation.
were
and graft, in
States. Among
the
political pressure groups.
is
that this $22 billion U.
years,
888.6706
at
sophisticated econ¬
the recent
more
omist has learned, over
Value of Gold
dollar
Our
fined
even
Statement
The
of
The
an
on
Rejects Gold Moratorium
1*;*
basis for the creation
the progress of in¬
system
the
keep
keel.
rency
ness of commitments
and prom¬
provide their country with the
mineral raw materials necessary ises, and justice without any lim¬
its.
Conscience
also
requires
for the giganelimination of political favors and
t i c industrial
civiliza-
a
credit and
losophy. At that time there was
enough gold available for governments to back their "printed" cur-
to
and
as
to
burning hot potato that simply
cannot be touched,
Let us have an analytical look
gold standard of British make to
be
the dominant monetary phi-
governments,
demands ethics, holi¬
it
of the
dustry. During the 19th century
we
found what was called the
siderable burden for
because
gold, with the skill
British, became a cover for paper
money late in the 17th century, it
official domestic debt/1
Mining experts spend most of
their lifetime finding better ways
is an absolutely secondary question. The value of gold, on the
other hand, is a complex of such
scope, that nobody in the adminIsabella, who in turn fi- istration wishes to cope with it.
him solely for this pur- For these reasons, it has been
relegated to the function of a
organized their
expeditions to
find gold. Christopher Columbus
sailed west with only the idea of
securing the West Indies gold for
gold price increase, though inev¬
itable, will take some years to come; (2) that governments
will not allow themselves to be policed by gold; and (3) to
inactivate their mines and pursue other activities during the
waiting period. After blaming legislators for price inflation
and describing government bonds as "certificates of govern¬
ment confiscation," the currency expert defines the value of
gold solely in terms of its purchasing power and includes total
government debt with money in circulation and bank deposits
to show we lack adequate gold stocks.
Decries practice of
paying for vast Federal expenditures by wilful "debasement of
currency value," and contends gold "cannot be manacled • • •
[and] governments will once more surrender to the measuring
rod which alone enables us to wipe out part or all of our
rosy
a
on
power of the dollar
and more. Thus we hope to
purchasing
more
going and
the carriage
everybody happy.
keep
But
here again
I would like to
purchas¬
that debasement of
say
if kept at only
for every year/
is a rather gruesome thing. It not
only makes a fool out of every
bondholder or
owner
of paper
ing
even
power,
3% to 4% of a loss
moeny,
and
insurance, annuities
but it also com¬
life
other assets,
plicates the task of governments.
And
as
any
ruling body faced
with three different solutions, in¬
least in¬
possibilities,
variably will choose the
telligent of the three
we
will do the same.
we
lose another 28%
And should
of the 1939-
dollar, which, even without gol
embargo, can easily happen with
five
in
to
seven
have to proceed
years,
wil
we
with another cur
reform. This reform, whic
like myself will call an
state bankrupted, can onl
be made over a revaluation of th
rency
cynics
other
gold price.
No
special intelligence or skil
it. A fev
will be necessary to do
lines
legislative
of
we
text
a step.
to do so,
such
complish
wanted
can
ac
Surely, i
we
coul
it, but the price to be pai
by the nations would be much
too high.
It would have to b
paid by some sort of sharp re
cession, with more tuan 10 mil
lion unemployed, wh^ waves o
bankruptcies and substantial so
cial unrest.
And that, I do no
avoid
think, we will do.
Rather,
decline
of
we
w'Tl try
the
domestic
carry th
do 11a
value to further- historic lows. I:
Continued
on
page
4
Volume 186
Number 5676
.
The Commercial and Financial Chronicle
.
.
(1329)
specting their holdings of, and
dealings in, the company's securi¬
ties. In short, the Commission has
the obligation to persist in enforc¬
ing the principle of corporate
publicity for the benefit of public
investors, both present and pros¬
pective.
Obligations of the SEC
By ANDREW DOWNEY ORRICK, JR.*
Commissioner, Securities
and Exchange Commission
While commenting on the SEC's
obligations to the investing
public, regulated persons, Congress, and to the economy,
The
Commissioner Orrick reveals:
(1) obligation to protect the
public includes protecting the needs and interests of the regu¬
lated industries; (2) form
simplification program for indus¬
trial
to
and mining firms is
amendments for certain
nearly completed; (3) "no sale"
mergers, etc., is still being studied;
the
twenty-third floor of 'h
skyscraper two intent
men.
are
the
on
Commission's
staff
studying the ticker tapes of the
New York and
American
Stock Ex¬
changes. They
are
looking for
market
ity,
or
in
may
dicate the
of
'
faithful
adherence
the
to
statutory prescriptions, the finan¬
cial
structure and
registered
company
transactions
public
utility
A. D.
New
Orrick, Jr.
gar¬
district is
buzzing with an
exceptional kind of activity. Thirty
or
so
telephones are clanging.
with
Stockateering salesmen
munity.
tout¬
are
ing to sucker prospects
across
the
The
the
Commission
extensive
affairs
of
of
revoking
of
processes
entrusted
over
financial
regulation
highly
demand to
speculative
securi¬
the business records
see
of the firm.
They take the names
of the salesmen, many of whom
have criminal records, and within
a few
days a court injunction is
obtained
to
stop further illegal
sales.
nal
The preparation of a crimi¬
case
against the firm and
salesmen
is
immediately
its
com¬
menced.
In its San Francisco Office
Commission's
Regional
trator advises
the
the
Adminis¬
President
of
a
small electronics company how to
comply with
Regulation
erning small offerings
ties.
In Fort Worth
of
A, gov¬
securi¬
Commission
a
enforcement attorney interviews
confused
widow.
She
was
a
squan¬
dered her life savings in a promo¬
tional
scheme
based
upon
a
"doodlebug"
represented
stick, which was
as
being capable of
detecting the
In
serves.
inspector
ords
location
Los
broker
a
re-
Angeles
examining the
is
of
oil
of
-
an
rec¬
dealer.
He
is
checking
to
determine
whether the customers have been
I
fairly dealt with, whether the firm
is adequately capitalized, and if
the business is generally being
conducted in accordance with the
standards
of
Enforcement
ommended
tinued
the
securities
action
where serious
violations
More
will
are
commonly,
laws.
be
rec¬
or
con¬
uncovered.
the
inspector
concludes his examination by giv¬
ing
the
how
to
firm
helpful
advice
on
comply with the require¬
ments of the securities laws.
The
1
five members
mission
are
tinuous
of
the
capital
com¬
of
the
formation,
around
a
con¬
large
oblong table in Washington, D. C.
They are conferring with repre¬
sentatives
of
a
prospective issuer
of securities
sity
for
regarding the neces¬
registering its offering
with
the Commission.
They are
consulting with the Commission's
staff about the
*An
institution
securities
country.
of
address
stop
by Mr. Orrick before the
Federal Bar Association, San
Francisco,
Calif j; Sept. 6,' 1957.
•
'
understanding
of
its
responsibilities and
These
are
insepa¬
obligations.
rable
from
its
and
powers
broad
be
must
grant
of
judged
in
the context of the ultimate statu¬
tory criteria—the public interest
investor protection.
An ap¬
praisal of the nature of these
obligations,
and
to
whom Qthe
and
Commission
is
accountable
in
executing its public trust, will
clarify the guidelines for its op¬
erations.
The
Securities
Commission,
and
like
all
govern¬
agencies, bureaus and de¬
partments,
has
as
its
primary
obligation, the responsibility of
serving and protecting the pub¬
This obligation to the public
two facets—one involves its
has
basic duty to protect public in¬
vestors, the other concerns the
legitimate
needs
and
interests
of
the
regulated industries.
Obligations to Investing Public
The
investing public is entitled
to
the protection afforded
by a
vigorous and
suggestive,
not
apathetic or passive, administra¬
tion
of
the
securities
Commission
must
laws.
The
continue
to
implement its energetic enforce¬
to compel the regis¬
ment program
tration
be
of
securities
distributed
to
proposed
the
interstate
commerce.
obligation
to
ards
of
disclosure
in
Persons
who
the
shareholders
should
them
be
public
to
solicit
of
must
or
required
be
entrusted with specific but limited
a
question
as
exemptive
Act for
and
expressed-
doubt that it could be relied upon.
The Commission is
In
bankruptcy
re4-
oi;^aniza,tipns it Js;-Obliged, to de¬
fend the interests of public inves¬
tors
by assisting the courts in
rities
reporting requirements prescribed to all public filings and applica¬
in 16(a), is
designed to prevent tions and Commission opinions and
the unfair
of corporate infor¬
use
in interstate
commerce
and
by
insiders—officers,
di¬
and
10%
stockholders.
provides for the recapture
by the issuer of profits realized
by insiders from- the purchase and
inr the TrusJ Indenture
safeguarding' investors in sale,
debt securities.
or
Proposals
transactions that the
determines
within
its
Commission
not comprehended
are
Pursuant
to
Commission
purpose.
this
authority," the
exempted from the recapture
pro¬
visions the acquisition of shares
or
pursuant to
to
adopt or
widely
if the
plan meets certain detailed
It is apparent that the
exemptive
regulation
that
is
be
must
order to
give all
its
investigatory pro¬
are generally con¬
privately in ofcler riot to
reputations needlessly ok'to
evidence
preserve
under the
The
for
possible
all of its operations
be. conducted
must
full
openly
and
glare of publicity.
should be
public
informed of the
kept fully
underlying
reasons
for all of its actions.
of
Obligations to the Congress
The
similar plan,"
or
exercise
tyne
of
prosecution,
bonus, profit-shar¬
a
ing, retirement,
conditions.
any
rules
non-transferable options "acquired
to restrain from
imposing
its
ception
ducted
gr.Un^. tt> tile inj ure
Commission the power by rule to
exempt from
its
coverage
any
registered brokers and dealers,
the Commission has the obligation
of
rulings.
amend
sale and purchase, of the ceedings, which
securities' of the issuer within
any
six months period. It
to
powers
Commission
is,
directly .accountable
of
codrse,
to'Congress
for the administration of the stat-
!
in¬
Continued
on
page
40
not
and,
markets.
from
securities
to
inform
of
the
considered
at
This is
not
an
offering of these shares for sale, or an offer to buy, or a solicitation of
any of such shares. The ojj ering is made onlybythe pros pectus.
peditiously, under consistent poli¬
interpretation.
cies of
As
in enforcing the
by
insiders
re¬
an
offer to buy,
400,000 Shares
administrative
an
body ex¬
ercising broad rule-making pow¬
ers, it has an obligation to adopt
and modify
its regulations and
forms, subject to the intendment
Utah Power &
Light Company
Common Stock
of the
statutes, to meet the chang¬
conditions and requirements
ing
of
the
economy.
With Par Value of $12.80 per share
With the recent
adoption of the amendments to
registration forms applicable to in¬
Price $23 per
share
dustrial and
form
simplification!
A
amendment "to
delimit
the
theory
"no
tion
sale"
with
certain
in
use
of
connec¬
mergers,
con¬
solidations, re-classifications and
exchanges, embodied in Rule 133,
is being actively studied.
The Commission has
Copies of the prospectus may be obtained from any of the, several under¬
writers only in stales in which such underwriters are
qualified to act as"
dealers in securities and in which the prospectus may legally be distributed.
proposed
the
a
continu¬
Blyth & Co., Inc.
Kidder, Peabody & Co.
J. A. Hoglc & Co.
Paine, Webber, Jackson & Curtis
Shuman, Agnew & Co.
in
E. F. Ilutton & Company
the
statutes, which at times
to be troublesome in deter¬
mining their
application to
proper
particular factual situations.
meaning
ascribes
which
to
the
the
The
Commission
regulation.
Our
shown
issuers
experience
of
has
securities,
brokers and dealers and the finan¬
cial bar normally wish to comply
with the requirements of the secu¬
rities laws, provided they know
what
these
requirements
are
and
how the Commission construes the
statutory
rules
and
A. G. Becker & Co.
Incorporated
W. C. Langley & Co.
provisions
and
its
own
regulations.
Obligation to Carry Out
Congressional Mandate
The Commission has the
obliga¬
tion to administer the laws under
its jurisdiction in scrupulous con^
.1
j
t
Estabrook & Co.
G. II. Walker & Co.
Bosworth, Sullivan & Company, Inc.
Crowcll, Weedon & Co.
Schwabacher & Co.
Pacific Northwest Company
Dempsey-Tegelcr & Company
Kalman & Company, Inc.
Hill Richards & Co.
A. M. Kidder & Co., Inc.
Lester, Ryons & Co.
requirements "and
"prohibitions in the statutes under
its jurBdicilon slffoiddlaevcf Jbg
shrouded,,,,in mystery. The princi¬
ples underlying their application
should be clearly, frequently and
publicly explainecTTor the benefit
that
Bache & Co.
R. W. Pressprich & Co.
- -
1
f
Dean Witter & Co.
Shearson, Ilammill & Co.
Brush, Slocumh & Co. Inc.
Ilallgarten & Co.
Edward L. Burton & Company
prove
Merrill Lynch, Pierce, Fenner & fieane
Stone & Webster Securities Corporation
ing obligation to enunciate its in¬
terpretations of various provisions
of all persons who are, or
may be¬
timely filing of accurate and com¬
plete reports by issuers respecting
their, financial condition and op¬
and
to the validity of this
rule
Irving Lundborg & Co.
The Ohio Company'
Bateman, Eichler & Co.
R. S. Dickson &
Rauscher, Pierce & Co., Inc.
Bingham, Walter & Hurry, Inc.
Company
Fahey, Clark & Co.
Ferris & Company
Incorporated
Merrill, Turben & Co., Inc.
Wni. J. Mcricka & Co., Inc.
Revel Miller & Co.
Stein Bros. & Boyce
The First Cleveland Corporation
Wagcnseller & Durst, Inc.
Julien Collins & Company
Saunders, Stiver & Co.
Baunigartner, Downing & Co.
A. P. Kibbe & Co.
Carmen & Co., Inc,
A. G. Edwards & Sons
Elkins, Morris, Stokes & Co.
Refsnes, Ely, Beck & Co.
Chas. W. Scranton & Co.
Stern, Frank, Meyer & Fox
Barret, Fitch. North & Co.
Woodard-Elwood & Company
Beil & Hough, Inc.
Campbell, McCarty & Co,
Incorporated
Chace, Whiteside, West & Winslow
Kenneth Ellis & Co.
lncot'iMjratrrt
Evans MacCormack
&
Co.
Carl McGlone & Co., Inc.
Newman and Co.
Ilanrahan & Co., Inc.
September 25, 1957.
II. L. Emerson & Co.
Incorpiiratedl
Ilincks Bros. & Co., Inc*
m
^
Maxficld IE Friedman
McJunkin, Patton & Co.
Miller & George
Pierce, White..and Drummond, Inc.
Barrett & Company
against the proposals. It
be vigilant
erations
law
of
disseminated in
come, subject to the Commission's
proxies
listed
in
shareholders' meetings and to af¬
ford
them
the
opportunity
to
vote for
creature
a
interested persons the opportunity
to submit comments. With the ex¬
stand¬
offerer!
public
to.
issuers,
upon
are
fully of the nature
matters
ency to overlook the fact that the
Recently, the United States
Court of Appeals for the Second
Circuit, in Greene v. Dietz, raised
16(b)
an
has
It
impose high
securities
traded
perspective of a particular
there -is sometimes a tend¬
ties.
rectors
mining companies in
the promotional or developmental
stages, the Commission has nearly
Exchange completed its
present program for
mental
lic.
the
rr
It must, therefore, have
clear
a
fundamental
whose
Com-
meeting in almost
session
the
pano¬
in
systems and investment
clearly
markets, the large
quired to provide "adequar<TThties that have not been
registered public utility holding company' vestor protection. lri the~exerciso
with the Commission for
public systems, and
investment trusts of its licensing and regulatory
sale. A task force of Commission have a direct and
significant im¬ powers, the Commission must cohinvestigators enters the loft. They pact upon the economy of the diict its business
equitably and ex¬
nation
or
mation
tablished
150
argu¬
authority
the
Its
is
economy
holding
railroad.
to
the question of
on
investors
on
aspects of its work. Each of
The public also consists of per¬
us, in his particular capacity, is sons
who have subjected them¬
doing a job to protect for the pub¬ selves to the
jurisdiction of the
lic the citadel of
honesty and fair securities laws.
To
issuers who
dealing in securities transactions. make public distributions of secu¬
York's
ment
listening
the
prevent
some
A warehouse
in
an
to
determining
the
fairness
and
activities, carried
feasibility of proposed reorganiza¬
on
by the Commission and its tion
plans.
approximately 8 0 0
employees
throughout the country illustrate Obligations to Regulated Persons
manipulative
practices.
loft
court,
as
against the broad
the
narrow
Commission is;
responsibility
adminis¬
nearest
sitting
of
rama
Its
These types of
ex-
istence
are
,
may seem,
case,
companies.
It must strictly en¬
force the protective standards es¬
and
of its customers.
prices,
in¬
that
They
only 200 miles
Circle
the
actions must be weighed against
the interference that the
statutory
authority which was con¬ prohibition imposes on the
right
ferred.
Obvious as this principle of individuals to trade in securi¬
any
criteria of conduct for brokers and
dealers and investment advisors.
with
the registration "of a 'broker-dealer
firm for churning
the accounts
trading vol¬
ume
Arctic
from
ments
activ¬
either
located
were
the
\yhich were Jiot
shirk from exercising
powers
nor
•
SEC statutes.
miles
trative
unusual)
,any
.
claims
enforce
and
use
granted
presently con¬
powers.
sidering a modification of the rule.
which take many ingenious
The perplexity that frequently
forms, requires alert and prompt faces the Commission in
interpret¬ Obligations to Inform Public of Its
action
by the Commission.
Its ing
Activities
Congressional policy and the
program
to
protect
the
public extent of its
As administrators of disclosure
statutory powers is
from the nefarious operations of
vividly illustrated by the rules statutes, the Commission has the
"boiler-rooms," must drive for¬ promulgated, under1 Section
16(b) obligation to afford ready acces¬
ward.
of the Securities
Exchange Act. sibility, for the press and all in¬
The Commission must regulate, This
subsection, together with the terested members of the public,
order proceedings against a
regis¬
trant who had omitted to state in
its
prospectus that its uranium
from
and
duty
high
to
by promoters and securities sales¬
of
On
the
formity with the mandate from volves a
balancing of interests.
Congress as set forth in the statu¬ The
possibility of abuse in using
tory language. It must not attempt inside information in
these trans¬
men,
the SEC would be
jeopardized if the administrative adju¬
dicatory function is taken away from it. Calls on investment
industry and the financial bar to keep informed of SEC
New York
has
perpetration of frauds
(4) bonus, profit-sharing and other stock distribution
pro¬
grams may, after all, abuse the "inside information"
regula¬
tion and, thus, require
modification; and (5) the effectiveness
standards and to
comply fully with
Commission
' preserve
13
Kormendi & Co., Inc.
Taylor, Rogers & Tracy, Inc.
Financial Chronicle... Thursday, September 26,1957
The Commercial and
(1330)
14
agriculture in this postwar peace¬
time period, especially in view of
the tremendous surpluses accumu¬
lated
through
continuation
of
wartime
production
incentives
into
a
time of peace. In plain
words,
this
Administration in¬
herited many serious agricultural
Ready for the Next Step on
The Faim Policy Debate
*
.*
,
HONORABLE EZRA TAFT BENSON*
Secretary of Agriculture
By
i
From
Washington
the News
Ahead
By CARLISLE BARGERON
including a 19 point
in the farm parity level
during the 23 months period prior
to
Jan. 1,
1953. We have been
faced with a job of housecleaning
at the same time we have been
problems,
drop
the problem of surpluses "is now on
run," and agriculture has turned the corner toward pros¬
Though claiming that
t
the
perity, Mr. Benson urges moving "away from
mulas in the old law which, as they now
'
the fixed for-
stand, require
moved."
*
agricultural
which had been endorsed
by both political parties prior to'
the 1948 election and was vigor¬
ously advocated by other Secre¬
taries of Agriculture —including
Clinton P. Anderson and Henry
A. Wallace—was enacted by the
continue to dominate the
large scale farms are found to still be
scene, as
4% of commercial farms.
Young people are the best crop
,
lose
never
sight is: What
of
kind,
will
I
jS
means,
never
can
concern
itself
short
and
run
when
Taft
can
it
only with the long run. — and
ignore the problems of today.
My own upbringing and years
in agriculture, and more recently
my
experience in government,
convinced
have
me
—
ever
war
is
more necessary
the insatiable derequire maximum
reductions
and
year.
production, but
there was an attempt during this
recent
session
of
Congress
to
scuttle it before it had a chance
to
total
in
made
itself. Fortunately these
prove
successful,
attempts were not
"
Sound Supports
Favors
out
:
Let
price
that
emphasize
me
contributing stability in the
is
supports
world has
possible
not
be
im-
so
The
is
adjustment
for
that associated with
true in the past
equally
in
true
the
I
This
conviction, of course, inmy beliefs
about what
should be and what
government should do. Govern-
government
and
gether
citizens
the
on
work
can
of
problems
as
—
Farms can be run successfully
only by. those who live on them
who
and
work,
have
their
their
capital,
*n
lifetimes'
their
is
more
the
concerned
cost-price
than
squeeze
remained consistently high,
We have had the unhappy experience in the last generation of
having to adjust to a postwar time
jn the 1920's, followed by a great
depression in the 30's, world war
a§ain i*1 the 40's and world re?overy from war, the Korean war
our
strongly as I know
how
farms
throughout the 48
states can not be run successfully
from Washington.
say
one
about
<sxist but cost of production has
to-
*
times.
peacetime agricul-
which confronts agriculture today
*n this time of postwar adjustme.nt- Wartime markets no longer
fluences
I
prosperous
No
future.
ment
a
goal of the Administration
ture and we have already brought
ab°ut significant accomplishments
in line with this objective.
that
believe
to
me
what has been
will
is
It
known.
ever
for
the
the opening of the 50's, and
followed again now by another
hopes,
period,
and their future invested in them,
postwar
To
gr.eat difference now compared
with the late 40's when price increases caused by World War II
were sustained by food and fiber
requirements in the world-wide
Postwar recovery period.
Postwar Challenge
succeed they must
dom' to
determine
have free-
their
own
op-
portunities, and freedom to act
upon them.
That's plain talk—but I would
not be living up to my responsi,
—7T~
A A
An address
South
Dakota
v.
am
r>
,
.
,
by Mr. Benson before the
Fair, Huron, South
,xr
,
But
,
there
.
is
a
„
We have responded Successfully
State
to
Dakota, Sept. 7, 1957.
most
of
the
challenges facing
sell,
and
There
These Beautifully Bound Sets of
several
followed
weeks
political maneuvering for the
Negro vote. V'ce-President Nixon
a re
if,
of
Cali¬
insist
upon
Knowland
Senator
and
continued
fornia
.
.
which chase
1895
to
1939—inclusive
1908
to
1928—inclusive
1914
to
1956—inclusive
1926
to
1952—inclusive
Available for immediate sale in New York
City
Subject to prior sale.
on
to
,
one
only
have to
those
Write: Edwin L. Beck
c/o Chronicle, 25 Park Place
and
only the
.in and took
came
vote and,
such
on
of
We
We
to
seek
maintain
a
We seek
Southerners
with
adjustment made to
have continuing
efficiency,y •
jWe seek an agriculture;' that
provides for farm families an op¬
portunity to share fairly in our
nationally rising levels of living.
We seek an agriculture in which
there are the proper incentives to
use and maintain our soil, water,
forest,
and
range
come.
seek
We
for
generation
resources
the benefit of both this
the
of
families
to underdeveloped
now
under-employed
on
inadequate farms.
We
seek
through
to
the
these
effective
Continued
on
goals
operation.
page
45
con¬
Southerners
were
to kill it off by fair
Senator Dick Russell who in his
command
to
unusual
Senate
has
national
re¬
the
in
years
attention, hit upon
spect and
an
The thought; of be¬
idea.
filibusterer and denounced
by the Eastern press as a dema¬
gogue was repugnant to him.
ing
and in view of their great accom¬
plishment, Russell and Johnson
were urged not to stoop to a fili¬
buster to kill the bill entirely.
sir,
Well
these
gentlemen
two
swallowed the bait and sold their
colleagues
made
that
idea
the
on
had
South
a
great
the
accom-.
.
The non-filibustering Southern¬
their
expressed
ers
scorn
increasingly
Thurmond,
editor
•
after
so
for
as
Southern
Now, in the Little Rock episode,
what
Government
Federal
the
is
Where does this leave the
wrong.
Senators
Southern
be
statesmen?
who
They
tried
to
unquestion¬
ably have been tricked.
Margeson V.-P. of
a
Knickerbocker Shares
William
Margeson has joined
Majority Leader Lyndon John¬ Knickerbocker Shares, Inc. as a
of Texas, not a dyed-in-the
Vice-President and national sales
wool Southerner, just as much a
manager,
it
Westerner, was basking under the has been an¬
statesmanship mantle which the nounced
by
son
i
Eastern press
has. bestowed upon
nor Russell rel¬
Karl D.
filibustering tactics
Knicker¬
him.
Neither he
ished
the
old
the
and
the
of
smears
Eastern
with which they would
draped.
press
Russell,
to : his
talking
,
be
col¬
a
was
Section
said,
by,
to
of
was
carry
means
a
civil
it
at
the
in
prin-.
under¬
eipal
writers
of
shares
of
K
n
i
k e r-
c
rights
bill
to
Venture Fund.
desegregation
bill
and
bocker Fund
purported
he
distribu¬
Inc.,
the
of an injunction, a de¬
jury trial.
President
said
bocker Shares,
arid
had
this
never
light;
indeed, he had never read the bill,
Capital
Formerly
hidden plan, he
out
of
of
III
the
Eisenhower
looked
,
than
more
Here
be.
that
explained
statesman,
nevertheless
Pettit,;
President
tors
leagues and to the President with
the. line that he wanted to remain
nial
achieve
their
This being the case,
us.
on
foul.
or
Administration's
extension
rural
with fuller opportunity for
progress
really
were
problem. The Ad¬
up with a bill
a
came
the
Senate
family-
agriculture in which
is encouraged,
an
eyes
purportedly
designed to
insure using? Section III, moderated or
the Negro's right to vote in the not.
They are using it in the
South.
The
House,
where
the naked
fashion,
the
fashion in
Southerners
are
outnumbered,
which non-Southern Senators and
passed the bill just as it used to
Eastern
press
agreed
was
pass the anti-lynching bill. In the the
is
advance
intervened.
II
ministration
type agriculture operated by free
and self-reliant men and women.
I
all, the other
the advent of Eisenhower
fronted
expanding, and free.
prosperous,
Pakistan, Syria and
countries that were keeping
editor began to ask their Senators
and
Chief Justice Warren, civil
rights in advanced form came to why they didn't give Thurmond
the fore, and at the last session a hand.
me
agriculture that
understanding and was some¬
thing the country could be proud
of in the face of Russia, Indonesia,
Southern
Forth Goals
an
This,
Act.
came
in
War
With
>
seek
statesman¬
the Fair Em¬
to be much
Congress because
never
issue
an
World
come
Let
the Negro
Practices
however,
long
goals?
over
measures as
ployment
goals.
these
are
Roosevelt
their
plishment. They sold it to all ex¬
the South became, passe.
cept one Southern Senator, Thur¬
Democrats, tasting their
mond of South Carolina. He fili¬
long reign in power, wanted to
bustered for more than 20 hours
hold the Negro vote. So the fight
but none of his fellow Southern¬
for the Negro vote began to turn
ers would come to his support.
means
them.
and
/
on.
maintained
had
ship, that, indeed, the civil rights
debate this time had brought light
in
ing
improvements in the
are
being made.
job is not yet done if we
What
Every¬
they had won a great fight, that
they done it on a high plane, they
Northern
looked upon
list
sover¬
in the meantime, lynch¬
economy
Sets
in
Southerners
states.
moved
time
But
the
and
their
of
real
our
that
Thus,
body would be happy.
ture,
reach
and
that.
of
the
and
days,
farm
to
end
would have maintained the
support of those honestly willing
to face the problems of agricul¬
are
filibuster
the
be
of
bill.
would
Democrats
which they unquestionably had
generation or the next when
go in this direction. Arid that
is why I have been devoted to
reversing such trends.
But the
by
Republicans would have made
bid
to hold
the Negro vote,
a
prices lower and
good suggestions
Washing¬
submitted
the
we
the
in
been
that
anti-lynching
an
Southern
this
With
itself.
years
Republican at every session
Congress
help to farmers—either
no
30
been
The
regimenting farm families.
It is
more
whole eignties
crop
than
writer has
a
new,. essen¬
controversy
ton, there has
others—
which in the end have
effect of making
areas,
New York 7, N. Y.
of
them out
dumping them
ing
the
this
around, tak¬
acres
nothing
was
in
the
inefficient—
and those to
Section III.
There
For
to plant
their farms
make
and
it, so that farmers
incentives to high
"FOR SALE"
REctor 2-9570
strike
amendments to
of
haven't,
they
farmers, limit their right
and continued
Phone:
i >r
pants1.
wondering
believe in price sup¬
ports properly used as means of
providing stability for agriculture.
But
I
do
not believe
in price
technical
"CHRONICLES"
k in g
They
which build up great unman¬
t^Sh farin prices. No one shoulji
misled by agricultural statistics ageable surpluses—
which
force
controls
over
based ori casualty lists.
respon-
progressive
a
their
I
economy.
Solution
easiest
farmers
eibility in the past that have made
agriculture the
most
and
h
s
would
War.
The
American
productive
Senators
Senators:
to war because that always means supports set at levels which are
in rising prices and unlimited mar- destructive of farmers' welfare,
which
personal
self-responsibility
and kets. But this does not recommend
price ourselves out of
individual freedom of action.
w.ar as a solution for creating markets that farmers must have—
such freedom
bill went
Non-Southern
Southern''
strongly — that the real road
opportunity and success lies
It is
to say that the
far.
introduced
being tially,
are
n, and more recently the Korean
War Is No
more
last
only
effect
into
went
Significant
have their function in
agriculture — just as social se¬
curity, unemployment insurance
and the like have their function in
joined
forces
with farmers
throughout the nation in meeting
the requirements of World War
itself
concern
of
production, when there is never
enough of anything to fill the demand. Farmers in South Dakota
—
ration,
Neither
Benson
and
war
mands
about the next
Ezra
Adjustment to
conditions is never end-
Adjustment
.
forget
g ene
dynamic and
jng
the
with
only
a
nation.
changing
a r m
expected—m fact
be
unavoidable—in
growing
believe, that
policy
f
and
Congress in 1954 but
to
js
to them?
This
began to agree with Rus¬
sell
■
pass
we
fluences
too
:
»
has the
It
etc.
about
to enough, other non-Southern Sen¬
of ators and non-Southern press in¬
government,
.
an
agriculture
on
constitutional
Attorney General
it.
Strangely
ask
would
Brownell
.
generation must
„
maintenance
of the
that
—
he
could not be been severely
Section
III, and the President
hacked and filled. The New York
put into effect until
the 1955 hoodwinkedin
the
friendly
bilities to farm families if I stated crops. By then the surplus build¬
'Times" .and
the
Washington
and
seductive
anything less,
up was out of hand. The Admin¬
"Post," determined integrationists,
I
have never known
a time istration then called for enactment
Washington
wi th an unexpected show of mod¬
when agriculture did not have of a soil bank program with the atmosphere. V,"
eration, agreed Jfat Section III
Carlisle Bargeron
A few weeks
problems. The problems have been dual benefit of making payments
could be moderated.
Section III
sometimes more serious and some - for taking tillable cropland out ago they wefe,
was
finally moderated and then
times less—but always we do have of production and also conserving embattled in an old and familiar
the Eastern press pressure was on
it for future years. The Soil Bank
problems.
controversy, that of civil rights.
Russell, and Lyndon Johnson that
agriculture produces—and always
will be. And a fundamental queslion of which our
see
gram,
that family farms
record level, and
the Eastern press seems
which
,
Surplus Number 2 to follow the successful disposal of Surplus
Number 1. Points out farm income and prices are on the rise,
farm assets have climbed to a record high, farm exports are at
ramifications
more
getting our programs under way.
For example, the Administra¬
tion's flexible price support pro¬
levels to be raised as soon as surpluses are
Warns that failure to do this will set the stage for;
price support
episode has far
than
those
The Little Rock
■
Margeson
a
Vice-Presi¬
dent of Waddell &
of
that
office.
Reed, Inc., Mr.
resident
manager
firm's Syracuse (N. Y.)
He
has
specialized
in
Margeson
was
mutual funds
for several years.
Volume
186
Number 5676
.
;
The Commercial and Financial Chronicle
.
(1331)
Melvin Janes, a
in his
early forties,
trackwalker with
friendly, sandy-haired
man
may well be the world's
doctor's
a
Since 1953, Dr. Janes has
degree.
only
...
trudged many
a
> >
mile
along railroad tracks from
Maine to Texas. His
mission: to check with his
own
power
of
Weeds
fire
a
15
eyes the killing
unique railroad-bed weed destroyer.
a
are a menace to
railroad
men.
They
are
hazard'; wheels slip on-them;
they hold
moisture which
the ties and undermines the
rots
roadbed; they make maintenance difficult.
than 50 kinds of weeds
grow
More
along the tracks.
Some die
too
easily and stay dead—but many are
tough for ordinary weed killers.
When Mobil scientists
developed
a
promising
oil-based killer—Agronyl R—Dr. Janes
new
took to the tracks to check it out.
It killed the
weeds, all of them.
doesn't blow
on
Moreover, it's heavy and
adjacent farmland. It leaves a
to
film that
discourages new growth (and also helps
keep the tracks from rusting).
-
You can't
buy Agronyl R herbicide
for your
V-i
sprayer anyway. It was created for
—and it does that
In the
same
scientists
A;'
'
for the
'X-'
'
v*
v
••••'
'
a
specific job
job without equal.
way, Dr. Janes and his fellow
develop countless otherMoBiLproducts
special needs of your business,
your car,
your
home. Whether it's
or
gear
gasoline
lubricant, it's unique in its field. And
can
depend
......
a
you
on
product of Mobil's
For
more
a
motor oil or a
its quality —for it is a
master touch in oil.
information about Mobil research
and
development activities, write to Room 2400,
Socony Mobil Oil Company, Inc., 150 E. 42nd
PP
St., New York 17, N. Y.
A*
MH
WW#!*
Mobil
x>;!8
SOCONY
x
?
'
#
MOBIL
OIL
r
•
■
'/
;;
>
'/
4
■'
fy'/',
v '•
.;V/4/V,
;*
.
,
;<
ri'.
,
:l S*
•"
'
a,"
#
'<*/> frm
-
y4-'
•'■9y/////ry_:
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f
.
J
y
X-V '
' </'
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fev
F<l"'
^'
,
.^4
mem
CO., INC.
Leader in lubrication for 91
years
i
*
Financial Chronicle
The Commercial and
16
The Philosophy
By
of Transportation
Commission
Commerce
evenly distributed among
regulatory official advocates coordination and integra¬
of the various forms of commercial transportation "to
U. S.
tion
from
one
Stresses the
Thursday, September 26,1957
athlete
of railroads and the signifi¬
transportation to a sound economy.
of
THE MARKET... AND YOU
three
The
Duplication
-
retreat their suggestions to issues
month
said
technol-
railroads. However, there
philosophic side to transporthis phase that
ogy of
tation and it is to
tion
and loss of energy,unncces-
j
duplication m transportation,
of coordination in trans-
early
lack
^
low
year's
f
.-
u
™
posted is no dearth,
A
-
in
wtll
weaUh
ar in
flow
/0
tide.
And it cometh
times to pass * * * that
the
work,
and
carriage,
is
worth more than the material,
spring
many
enrieheth a state more
more"
and enricnetn
These
mist,
expert,
of
region—in many instances, remote
Nei- fronv a major consuming point.
People
accept as
a
matter
they
were
rpcult
a
econo-
an
business analyst.
or a
ther
words
the
not
are
transportation
said within re-
course"the"necessfties^and
cent
history.
which would
They
are
able
the
of
words
Century.
through
than
r
is
named
Anthony
the
Arpaia
market
modities
portance to a nation: commodities
in their natural state
manufac-
remote
regions
creases
the
carriage—that is, transportation. It is to be noted that
land
Fv,„u..w
lure, and
of
natnm-
Experience has demonstrated that the three important
materials.
utiUty
com-
o£
value
and
might otherwise re.
£allow and worthiess.
The
Rajl
transportation
agUCU,tme a"d
mass
bv
Plate. Illinois Central and
Rock Island. But these high
returils seemed of little help
to the carriers generally
a.™
r-nntimipd
V
ineffectual
is
and
price begins with the
raw
Gj.- ^ distance gained
mind"
Asportation
v^ue
,
.
■
makina
extreme conditions and because
llley can transport in large volume
extent that these complcmcntaiy
meclla °f transportation are not
Eve on "Growth Stocks"
Th
so.called "«rowth"
stocks had s ome^ i
stocks had s o m e, s 1 zlble
zab1e
'
a
The decline, while retracing slashes from their overly op¬
rather sizable area — some timistic peaks, hence in some
materi-
60 .points in: the chnrt
industrial
quarters
were regarded
as the
cnan
nrimp
fnr a snannv
prime canaiaaies ioi a snappy
r
0
consumer.
comeback if the market does
find some other-fhan-transitory
support. Yet Minneapolis
Honevwell for one despite a
noneyweii, ior one, aesp re
trim of around 40 points m its
tag recently> is-sti11 hov-r-ins
-
resources
growth is impeded.
to
maintain
and
snpriniWp
transportation of the type
sufficient to supply
and nourish every segment and
member of that body. Social, cuttural and economic expansion and
progress^is directly related to the
ability to'vmove goods and people
and
new
A
S
country
greatly
from
geographical division of labor be-
,
Rails Are Main Arteries
put at less expenditure of capital
and labor by allowing localities
to specialize in those products best
body politic, then, assuredly, rail- adapted to their resources and
roads constitute the main arteries,
their skills. When
Without
izes
railroads, the world we
today could not have existed. They have made the largest
single contribution
to economic
know
The present pace
development
ress
was
over-land
and
made
mass
portation
inland
of
our
prog-
particular
a
special-
area
product or
tends to pro-
advantages
would
not
be
fully
realizable if it were not possible
to ship in large quantities by rail.
cheap trans- Reasonable
and
related
freight
to
immense rates also permit all producers of
possible by fast
transport by rail,
available
of the world and
predominant influence
regions
still the
in
an
products, it of course
duce more efficiently and this reduces production costs and ultiof social mately the consumers' costs. Such
material
Railroads have made
are
present day civilization.
In
competitive
their
products
products
market and,
competitors
as
is
in
to
a
market
common
the number of
increased
this
ix*Apa*ddAmSeri^„M,'k^r^a bconrgeretsh,'! serves" to'kpeo price's" dow'n.
Bu.no.
Aires,
Sept.
4,
the
•/?
w
ground well as a around the peak
their
solution
^
price of last
automobiles.
If all transportation is regarded
as
the circulatory system of the
health.
is
Such specialization could not exist
amount
about.
then
tation coverage, particularly 111 the groUnd,w
nitely above average, in ex^ e Prescpt high costs of
cess
of 25-tinies estimated
railroad construction? In essence,
Institutional Holders
1QC-7
fi+
unless mass transportation made ll 1S to build around the skeleton
"Ilamr On"
pioiu.
it possible for these areas to obtain ?f Pr^ent railroads, or those to
*
,
their inbound raw materials, some-'be
® complementary service
This indicated mostly that
,
conservative circles
times at long distances, and to by ®uch other .mfans f are fJ0Und the institutional holders were
n
from
ship their outbound nroducts to to be appropriate and expedient, riHinct it nut ^ thev have the attention was smiling
110111
ever expanding markets
whether by motor, water, pipeline "V1"8
the Srowth sectlon to areaS
products
must be
and
What
Contrariwise, mills, production of manufactured
vigorous, healthy
body politic, there
a
growing
;^c
tn
O
'
I
hold
dium of transportation.
\[11*
f
•
the idea,
Net even the rather definite
would be to provide the exact
No Bullish News
prospects for a boost in the
Quantity of service for the existliftlp in the npwn Baltimore
& Ohio payment
demand. Perfection in this
there was little in the new.respect hi obviously unattainable to spark any decisive market
c.ue to the normal vagaries of our acti0n either way. Business rumors
0
a of foreign ana
aouin
selling
economy There are bound to be continues spotty, no great up- riumors (
peaks and vales but to delibeiately
A season vet
e 1SSU
nj?L. mailt:
make 11
it ail
an outstanding
cas*
..."
"
r1
UUlildflUlllg Ucl&transportation is an extravagance showin^ in some key lines,
when the ^oing was
be av01ded- Standby facilities notably auto and steel, the
^
1
j| -. ,•
and a low utilization factor rep- credk pinch is in a status quo rou§h> a Single aa^ J5.S a° °,
reser|t needless investment cost,
little surface evidenc0 around 8/o standing out
carrying charges and maintenance. wnlul 11 r11^
^vmcu^ nrominentlv The issue
Except under unusual condi- of any intention to change it ^h
d
thoroughly respecttions, railroads form the skeleton suddenly, and international
J
1
of any effective transportation affa£rs showed little change
" ~PJu® >1fld ,on
,
system, because of their ability
, f
mdd surDris» 1956 payment rate at recent
to operate for long distances under Xu t he Ri il i^ had fouml it Price«-
>^rded
as an clement
in the cost
0j
production.
Its influence on
useless
it<;
or when the economy is going between 1949 and last year.
to get into a happier frame of
y.
...
average—in a shoit span,
without the nourishment which is als and continues
through every fully coordinated and integrated showed little signs of reachfurnished to them by the flow of
stage of processing until the de- as Part °{ a unified service, the jng anything approaching
tpvi^
ar hvery
of the finished product to iul1
exploitation of the potential (jrastic l^est
liquidation.
The issues
teues iflii!mennVehnHvariQi
of the human body.
Simithe
economy of a country is hampered
comoanies ex
larly, however rich a nation may
nnj
nf
tnn<?nortitioii and. the
maximum efficiency of 01 tiie largesl companies, ex
be in
and manpower, also nermits 2eom«anhiral divitiinq transportation is lost.
cept on the more severe sink^
ing spells> were stm able t0
brain
and
average continued Its
dreary retreat to levels not
seen for several vears
This
\
clearcut indication of whetfyej
goods over great distances at rea- earners are limited in many rcsPect? and, must necessarily be
complementary to the rail framew0Fk around which the structure
cTmASof°bone
to
Fesult as laIVa? mdfKet d^.t,iP111 particular index, as a matter
is1 conc'ern(;d ^as b?enu ldtle of fact, had retraced close to
sonable rates, reduces the prices of
Transportation is as important goods because, after all, the cost of
to the body politic as the circulatransportation must be realistically
Tta
ine complex ot none, muscle
muscle and
and
in
issues like Nickel
markpf action
far
ac
8%
running
quality
that the i3iitisn haa louna it
expedient to boost their bank
movement of yt less cost. Motor, air, and water rate by as much as 2%!
rjomjc ]^e
»rfiC fnal^vv 0LSHpnft,n.e0n0.!na feasible the
ansDor a
'
transportation.
many
produced in
And it also in-
are
experience o£ any country af£ords
many examples of this fact of eco-
than raw
importance
which
whkh
main
transportation
considered
greater
of
areas
economic im¬
Bacon
would
wuuiu
which
WHICH
urally follow from an over-supply,
Transportation
greatly
enlarges
things of
three
shipped to an
under-supplied-
avoiding the depression of
locally
iuuuny
prices
of his es¬
says,
also stabilized
available trans-
be
can
rtiich
steam locomo¬
tive, Sir Fran¬
cis Bacon, in
one
availible at
are
readily
-^uct
-
first
the
comfoids
be^ avail-
bortafion.reA Scaf ovCT-supJly"^
be¬
years
fore
would only be
or
transportation.
Market prices
the Sixteenth
200
not
0
fXZiSSS V'suT™ss iS hi
a
philosopher of
More
either
^
nd ™hi2m anH rnrnf
ffS ah?%hr/rmiJSlpB elsewhere
since there are no duplicating rail
» » often more difficult
prid expensive to rebuild tlian it
_l.ii
yjeids
Core arSls
created
was
5
1
.
on
*
Raffs
Quaistv
Rails were particularly
conspicuous on above-average
trains add to the cost of operation hunting attracted when the
prospered and more comforts were and the dalaylim ffij!in 12 Ten
av?raSe nudged to
provided for more people. It is
overbad binhi I itv to de the 460 area'as
3
mass transportation which makes aaJ,eu overneau,
aoiuiy
some concentrated proflt-takavailable to a community many yelup efficiently, excessive soltci.
fhe index
which must neces- tation, handling and other items, mg
eacn nine uieinuc*
commodities
wmcn
must^
neces
The South American countries for- worked above 510. The net
*arily be produced in some othei
payment
a
...
Yields Go Begirt"
^c.
were
«o
that
conditioned underway in the stock market have been well deflated and
conserves his physical, re- swept
through minor resist- currently are offering yields
by eliminating waste mo- ance levels this week, with of 6 to 612%, of which there
"truly*
sary
or
STREETE
By WALLACE
localities
February still surportation facilities, constitutes an viving for what appeared to
many areas the railroad serves as undesirable
econonl^ be an ultimate testing.
the only medium of surface trans- waste. This drawback can exist
^
...
f.
port where distance is a factor.
even within the same form of
As the cost of the transporta- transportation. Ihe multiple torAs has been the pattern m
tion was reduced, more markets
four SVYingS ln
?St tW°
ereatedmoreartmtebegan
^^u^ing of cars to make up years, there was some bargain
Much has been written and
about the mechanics and
making
.
the
as
sources
primary importance
cance
a
Just
permits shippers and passengers to obtain service
source under one administration and management.
it
as
•
Unnecessary
least cost." Commissioner
favors integrated ownership of all forms of transporta¬
Arpaia
tion
and areas.
progressive improvement at
insure
by
possible the production and avail¬
ability of more goods at com¬
petitive prices, means that the
prosperity of a society will not only
be
increased but will be more
ANTHONY ARPAIA*
Member, Interstate
rates,
balanced
and
is
...
(1332)1
1957.
'
sum
up,
efficient
To
transportation
air.,or
media still to be
other 50 to 60 point market
devlsed °r developed thereby pio- declines since
otherwise ditainaMe
S61'V1Ce
otbervyis,e obtainable
..To help accomplish this objectlve' another ^°/mf of ^aste' the
unnecessary effort and expense
c^se by duplication of ownership or management of the several
forms of transportation should be
av01ded. These factors tend to inCT,ease overa11 cost to the carrier,
m turn must be passed on
1° the shipper. The nations of
South America can profit m this
Fesp^ct frolT1 ?e hlstor.y of the
development of competitive and
au^diary transport services in the
Bnhed States. Shippers should
have readily available to them a
sin§le complete service through
one source ln order to obtain the
the fall of
™
even the year's
snarD sellofi earlv
since
where ^ enthusiasm o£ the
hasn't provided such excesses, such as
.,
fnnrj"
ctnrps' utilitie
. ^ ^ market runup
best on
in
the
the three
foodo, s t o r e S, utllit
6%-Plus ^ield lS
,
where a
week nudged aci OSS the three ayailable such
million line by a modest mar- M h
k
d
gin> jt was Qnly the second
a d
.
WQrk had
iUree
d
shares
million
aucea tnree million snares
this year, while last year
there had been nine such sessiong
durillg
the
similar
nPrinH
*
tUg
d
A
*
*
brokers,
hard
thg
black
kppn
jn
in Niagara
lower
grade
V!" Parker Rust
commons
like
Proof where
returns well into
the 6'7(
^ ^ ^ f
bracket, without any
f
idence
,
...
clines in
aren't
Fqt»
as
m
dividend
ieop
ront:nued de.
the general market
f
o^nprnlharmful.
market
going to be too
Oils in
Oils had
a
Disfavor
market life that
pressed to keep in tne DiacK
raatypd in qnots
ink, the widespread caution was definitely ragged m spots^,
type- quantity, and combinations and lack of buying incentive notably Gulf where perennial
Continued on page 55 did call for an upgrading in hopes of a stock split have
,
Volume 186
Number 5676
,
.
The Commercial and Financial Chronicle
.
(1333)
been dashed
repeatedly. And
some of the smaller
funds, un¬
like
their
larger colleagues,
taking a jaundiced
have been
view of the
petroleum section,
a few even
*
SjC
*
Shipbuilding shares,
.
not
overly sought,
able
to
show
buoyancy
the
while
average
most times despite
fact
that
their
recent
popularity made them
dates
for
i p a t
c
candi¬
reaction.
Newport
Ship, shored by its par-
News
t i
still
were
above
io
in the atomic-
n
energy-powered aircraft car¬
rier, has beernable to hold far,
corporated since 1946,
MILWAUKEE, Wis.
Loewi, President
of
—
training
a
Official Changes
program
upon
from Military service.
J. Victor
Loewi &
Co.
in
August
In¬
&
S. C. Reed V.-P.
quent
Co. In¬
formerly
Of Hare's Ltd.
S.
1955, after
Chadwick
early 1957,
to
member
Reed
has
following
ment
manage¬
changes made by the Board
of Directors.
William L. Liebman,
formerly Vice-President and Sales
Manager, has been appointed
Loewi
&
Three With A. M. Kidder
has
zer
and
are
now
Riley,
Jr.
Assistant
Vice-President.
Both Mr. Liebman and Mr. Rice
the
charge of dealer relations.
Board.
Hare's
ford H.
an
of
in
Mr.
Ltd.
is
Reed
the
will
MIAMI
and
(Special to The Financial
Chronicle)
ST.
distributor of the Insti¬
tutional Mutual
Funds, having as¬
sets of
$60,000,000.
Mr. Reed is
PETERSBURG, Fla.
Alderman, Herman
Walter
A.
a
deflated
from
leyan
Rawit-
School, and attended
University
and
Yale
122
market
feted,
was
Fullerton, Jr. Business School. During the
Co., he served as an officer in
Navy.
He is
a
war
the
fre¬
TALLAHASSEE.
E.
Bergman is with
& Co.,
Fla.
around
about
an
area
double
And
to
issues.r still
100%
tinct
buf¬
was
1957
low.
holding
appreciation
are
a
dis¬
a
rarity,
*
s
❖
In the stores
Kroger was a
boosting its sales
for the first
eight months of
the year by
nearly 12%. This
automatically made it a can¬
didate for
improved earnings
despite the over-all economy,
standout,
estimates
some
ranging to
$5.25 which would be
around
a
jump of nearly 8% over last
year's profit. The result, mar¬
ket wise, was that
Kroger was
also holding far closer to its
year's high than the low, but
was
still available at the
LOW DOWN
automobile
rea¬
sonable
hypoid
multiple of around 12earnings.
times
[The
article
views
do
expressed
in
gear.
engineers
Two With Dean Witter
posed
a
are
.
The low, sleek lines of the modern American
made possible by an ingenious
It drives the
rear
able to reduce
this
not
necessarily at any
time coincide with those
of the
"ChronicleThey are presented
as
those of the author only.]
tough, complex problem
...
a
an
engineering achievement called
the
wheels, but because it meshes below their centers,
automobile's height.
Lubricating the hypoid
gear
problem eventually solved by the combined research
skill of the automobile and petroleum industries. Texaco
scientists pioneered in
developing
a
rugged petroleum lubricant for this special purpose
...
another evidence
of the cooperation and resourcefulness that has
made Texaco research
a
partner of modern industry in its march of
(Special to Thk Financial Chronicle)
LOS
are
valuable
r
*;
w&s$s% '
i
mmm
W&
progress.
ANGELES, Calif.—Robert
A. Barlow and James O. Stolaroff
have
joined
Witter &
H.
the
staff
of
Dean
at your service
Co., 632 South Spring St.
L.
Jamieson Adds
(Special to Tim Financial Chronicle)
OAKLAND^ Calif. — Edwin T.
Phelps has been added to the staff
of
H.
L. Jamieson
Co., Inc., 1419
Broadway.
Hugh Johnson Branch
UTICA, N. Y.—Hugh Johnson &
Company, Inc. has opened a
branch office in the First National
Bank
Building.
Pearne
Billings
will be in
charge.
Schneider Bernet Branch
AUSTIN, Tex.—Schneider, Ber¬
Hickman, Inc. has opened a
office in the Capital Na¬
tional Bank Building under the
net &
branch
management of R. Mayo King.
Winslow Cohu Branch:
TROY, N. Y.—Winslow, Cohu &
Stetson has opened a branch office
11 State Street under the man¬
at
agement
Mrs.
of Mrs.
Ruoff
manager
Johnson.
Carol
P.
formerly
De^gy,
;
Ruoff.
local
King
Harold
Inc., Hotel Floridan.
hover
which
its
—
A. M. Kidder
peak
being
able
was
Harry
(Special to The Financial.
Chronicle)
but, except for periods when
the
—
Joins Kidder Staff
Law
the Harvard
with A. M. Kidder &
United States
Fla.
well
was
its
was
Eco¬
graduate of Wes-
—Wil-
Inc., 400 Beach Drive, North.
BEACH,
again be¬
of its
participation in
heavy plate needed in
the
the
and Allen W.
McCurdy
have become affiliated
with Fran¬
cis I. du Pont &
Co., 29th and
The Ocean.
cause
ship work. Lukens
of
Herman
sponsor
also
was
Econ-i
(Special to The Financial
Chronicle)
be
national
General Manager of the
organiza¬
Ernest F. Rice, Jr. has been
elected
to
Vice-President
and
Sales
Manager, succeeding Mr.
Liebman.
William T.
appointed
Incorporated), at
Riley & Co.
tion.
been
Co.
well,
up
The
Faculty of Yale University.
been Previously he was a Vice-Presi¬
its-peak than its low.
Lukens Steel,, the skyrocket of
1956 and
a
nomics
closer to
holding
contributor
omist, London, England, and
release
William T.
Riley, Jr. joined Loewi
corporated
Co.
starting in
being associated with the Marshall elected Vice-President of Hare's dent of Distributors Group, Inc.
225 East Mason St.,
Company. Previous to that he was Ltd., 85 Broad Street, INCew York
members of the New
York and
City, according to an announce¬
associated
with
his
Midwest Stock
Two With F. I.
father, W.
Exchanges, has an¬
Dupont
Thurman Riley (now also with ment by Emlen S. Hare, Chairman
nounced
the
standing out with Incorporated,
completely oil-free portfolios.
have been with Loewi &
Loewi & Go. Inc.
17
&
THE
TEXAS
COMPANY
and Financial
The Commercial
18
26,1957
Chronicle... Thursday, September
(1334)
the bank's legal
crease
for any
loan limit
borrower to $2
one
mil¬
Bank and Insurance Stocks
lion.
Banks
News About
CONSOLIDATIONS
NEW BRANCHES
Directors
of
The
First National
Bank of Toms River, N. J. held
Sept. 18, it was voted to present
At
Bankers
and
OFFICERS, ETC,
NEW
«
a
«
a
regular meeting of the
-
WALLACE
By ARTHUR B.
>
Stocks
This Week—Insurance
.
*
department's view that there need be no
haste in acquiring some, of the fire-casualty stocks for long-term
CAPITALIZATIONS
nual
holding, indications are beginning to appear in some of the statis¬
day, Jan. 14, 1958 two proposals
tics that it is time to pay more heed to the. group./Our equity'
as follows:
- .*
v
markets generally continue to decline, and to give evidence that ,
national Division. He will be in
(1) That the capital of the bank v
Supervision of the business af¬
charge of developing the Far be increased by 6,000 shares of " the present bear phase has not rum its course yet; and it is difficult
fairs in Canada of The First Na¬
•to,
recommend any/,sizable investing in the insurance stocks during '
Eastern
business of the Grace common capital stock of $5 par./
tional City Bank of Ne"' v«r'r
this weakness.%■" %
; • %'*
National Bank.
value,
increasing
the
capital
from
has been added to the duties of
*
#
But: that doesn'timean that we ought not to look for any favor- •
$930,000 to $960,000 and paying
James M. Niceiy, Vice-p4.co*ueiiu
/
able-factors,
that:
will
ultimately
contribute
to
a
decision
to buy •
Mr.
Jerome
F. Glasser was a stock dividend of 1/31st part of
Mr. Nicely is a senior official in
elected to the board of trustees of a share on Jan. 31, 1958 to all1 /intcT' the /list. ', This'} commentator -lis of the opinion that earnings
the Bank's Domestic Division and
-constitute .the mostImportant factor in determining, values among .
will
continue to be
associated The Hamburg Savings Bank, shareholders of record as of Jan. - the insurance stocks,/ and,,particularly, longer-term earnings.'1
•
14, 1958.
*
"
/-t'"',
with
the
supervision
of the Brooklyn, N. Y.
For example, Providence,Washington has for the past decade '
%
*
'
Metropolitan Group.
(2) To authorize the increase in
shown a: highly>erratic/record. 'of-.earnings from underwriting
Long
Island Trust Company, the common capital stock ;,out-;
The
Canadian area was for¬
operations, the net result being most unsatisfactory; and a few days >
merly surpervised by Robert P. Garden City, N. Y., on Sept. 12 standing from $960,000 to $990,000
ago its, dividend ;:was/omitted.;'This:.despite the fact that the $1
MacFadden, Vice-President, who was given approval in the New by the sale to shareholders of ;
/annual rate was / being amplyy covered by. the company's income'
Feb.
has been assigned to the United York State Banking Department to record
28, 1958, the new
from its investments.' ■ i•' 1 L
v■ v
:
;./'v %
Kingdom with headquarters in increase its capital stock from $1,- shares at $30 a share.
One factor that many insurance • stock investors put much London.
842,400,
consisting
of
184,240
No one will be able to subscribe importance on is the relationship °f price to adjusted liquidating *
M,r. Nicely began his banking shares of the par value of $10 for
new
shares
excepting the
value. This is the figure' at which it is presumed that an insurance
each, to $2,105,600, consisting of shareholders unless the sharehold¬
career in 1927 with the National
stock would pay off if it was decided to wind tip the business, .
Bank
of Commerce, New York 210,560 shares of the same par ers of record assign their rights
Many insurance stock buyers consider insurance issues to be in a
City.
He served with the Guar¬ value.
to subscribe to someone else.
buying area, pricewise, when adjusted liquidating values run well'
anty Trust Company of New York
The
offering
to stockholders
After the increase of the capital
above one and* one-half times the market price for the stocks.
from 1929 to 1948 and joined The
was given in the Sept. 12 issue of
stock
by payment of the stock
No doubt this material should enter into the investor's calculation,
First National Bank of the City of the "Chronicle" page 1119.
dividend and by the sale of addi¬
for, all else being equal, an insurance stock selling at only one-half
New York in 1948.
He came to
tional shares, the capital of the
its liquidating value is a much greater bargain than one that sells
National City at the time of the
at or about this break-up figure.
....
Guy K. Crandall, formerly af¬ bank will then consist of $990,merger
with First National in
filiated with the Marine Midland 000 of capital, $2,250,000 of sur¬
But, as indicated, other factors come into the picture: the
1955.
*
#
Trust Company of Southern New plus, about $500,000 of undivided
underwriting„ profit margin, ten-year gain to the stockholder,,
REVISED
shareholders at their AnMeeting to be held on Tues-
the
to
While it is- still this
/
-.
.
~
•
#
.
.
,
-
x
•
;
sjt
-
!■:
.
,
*
W. Radford, York, has been elected a Trust profits together with unallocated
Officer of the Marine
Midland reserves of approximately $250,Chairman of the
Trust Company of Central New 000, a total capital, surplus, un¬
Staff, has joined
York, at a meeting of the Board divided profits and reserves of
Bankers
Trust
Company, New
of
Directors
on
Sept. 20.
Mr. $3,990,000.
York, as a consultant in the de¬
Crandall
recently resigned
his
velopment of its business, both
Construction of the 19th office
position at the Marine Midland
foreign and domestic.
of The
National City Bank of
activities
primarily
with the recently formed Devel¬
opment Committee of the Board
of
Directors of the Bank.
The
Chairman
of this Development
Admiral
will
be
Radford's
coordinated
is William H. Moore,
Vice-President, who
will
become
Chairman of the
Board and Chief Executive Of¬
Executive
ficer
Other officer-di¬
the Committee are
Oct. 1.
on
rectors
on
Kingston Trust Company, King¬
Colt and
N. Y. was given approval
on
Sept. 10 by the New York
State Banking Department to in¬
crease
its
capital
stock -from
ston,
S. Sloan
E. Chester Gersten, who
are
retiring
as
Chairman and
Viee-Chairman of the Board on
$250,000, consisting of 2,500 shares
of the par value of $100 each, to
are
these
Grace Line, Inc.; Philip D.
Reed, Chairman of the Board,
General Eelectric Company; and
Thomas J. Watson,
Jr., President,
Business
International
from
Machines
Corporation.
*
Ralph Farrington has been ap¬
pointed personal trust officer and
Raymond W. MJoore has been
named corporate trust officer of
Chemical Corn Exchange Bank,
New York, it was announced on
26
Sept.
by
Chairman.
Harold
Both
men
H.
Helm,
are
mem¬
the
Clifford
Mr.
that
bank
the
of Charles F.
as an Assistant ViceHe will serve in the
appointment
Richardson
President.
Foreign Department.
Mr. Richardson has had exten¬
sive
banking experience land has
specialized on the Far East, par¬
ticularly Japan.
He
was
formerly
associated
with the Chemical Corn Exchange
where he
served as an Assistant Vice-Presi¬
dent in charge of development of
forFar
FRASER
Eastern business in the Inter¬
Bank
for
10
years
Digitized
since
1.37
"
92.83
54
1.72
"
55.31
31
1.78
"
76.41
43
1.78
"
38.75
36%
1.06
88.90
44%
2.01
"
75.84
39
1.94
"
;____!A
Fireman's Fund
,
/
Firemen's "Insurance
Falls
American
/_
Hanover
Insurance
Hartford
Fire
Insurance
National
New
announced
of the
on
Sept. 23.
.
This brings the number of
offices of the Worcester County
Trust Company
:;i
$
Bank,
Shawmut
National
D.
Somerville,
N.
died
J.,
on
Sept.
21, at the age of ,65.
Sji
Group, announces
that Walter J. Delaney until re¬
the
cago,
the
of
Bank
Trust
&
First
Co.
of
National
Paterson,
,
^
has
S:
The
of
American
Hutchinson,
Directors
ark
&
of the National New¬
Essex
Banking
Co., New¬
voted to increase the
bank's surplus by $750,000.
The
ark,
N.
J.
i§ being transferred from
undivided profits and
will in¬
money
National
stock
of
Kan.,
with
$300,000
1.92
2.14
"
J 126.72
78%
1.61
"
-
59.40
34%
1.71
"
-
94.33"
51
*1.85
Massachusetts Bond
Seaboard Surety
U. S. Fidelity &
common
6, the con¬
solidation was effected under the
charter of The American National
Effective
as
of Sept.
Continued
Guaranty._
on page
44
2.15
"
15%
2.26
"
44.29
46%
0.95
"
65.68
291/4
2.24
"
101.05
42%
2.35
"
40.16
22%
1.80
" "
26%
1.77
"
and
-
136
1.18
"
42.27
29
1.45
"
26.20
17
1.54
"
65.40
87
0.76
"
119.07
86
1.38
" /
48.26
28%
1.69
"
86.05
70
1.23
"
75.94
65%
1.17
"
of INDIA,
Bankers
INSURANCE
h
160.00
BANK
NATIONAL
BANK
-
64
_
Fidelity & Deposit
"
35.12
47.33
Continental Casualty
,
39%
——
American Surety
•
33%
Casualty
to
LIMITED
the Government
la
Kenya Colony and Uganda
Head Office: 26 Bishopsgata,
London,
West
E. C.
2.
(London) Brancht
Square, S. W. 1.
India, Pakistan. Ceylon,
End
13, St. James's
Bank
Kan.,
consolidated.
"
137.82
STOCKS
stock of $300 000;
and The Hutchinson State Bank,
"
84.85
A/
at
common
2.23
___—
Westchester
tf
Hutchinson, Hutchinson,
with
33%
64.55
United States Fire
Senior Loan
*
75.31
.
1.88
Springfield i___
joined the staff, as
Consultant effective
"
1.06
-
Illinois National
of Chi¬
"
79%
Security Insurance
Trust Company
$:
Paterson, N. J.
*
&
1.80
2.10
150.05
St. Paul Fire_
Sept. 1.
9;!
Director
Vice-President
Continental
Bank
Stuart Keefer was elected a
R.
Banking
cently Senior
Phoenix, President
of the Somerville Trust Company,
Clifford
Savings
comprising the Pull¬
Island, 111.,
man
B.
$
>;i
&
Bos¬
Richard
elected.
Director.
Mass.
&
Bank, Chicago, 111., the Standard
State Bank, Chicago,,* 111. and the
State Bank of Blue Island, Blue
to 12.
s;s
Trust
Pullman
The
28%
32%
—__
Insurance
,
51.29
68.13
2.08
-
ager.
"
95
American Re-Insurance—,_
9!:
*
*
1.93
38
■«i
River
Aetna
34%
79.19
•
Toledo, Ohio, it was an¬
nounced by Willard I. Webb, Jr.,
President of the bank.
66.33
100.79
Union
Pacific Fire
53%
1.04
Fire
Northern Insurance_i_/_—
"•
68.54
1.28
142
No. Amer.__
Co.
Hampshire
North
.
148.86
'
National
-
—
Providence Washington'-___
Citizens Trust Com¬
of The Ohio
Raymond D. Bosities is the Man¬
Young a
New
"
25%
Ship__
&
Phoenix
Randolph H. Barnard has been
elected to the board of directors
Office
opened
was
2.28
35.23
_________
Home Insurance :
•
*
#
9;!
also
Holden
the
&
National Bank of
York announced on Sept. 24
bank
1.78 times
27%
Fidelity Phenix ________
Fire Association
Great
firms.
Cleveland
,
4
Glens
pany,
Moore at 770 Broadway.
Grace
")t
1916.
ton,
The
,
American Ins.
'
Harris,
Schafer, Flynn & Williams, both
succeeds to the
Spencer
of the bank's
$
,,
60
63.29
_
Federal Ins.
Garfield,
is
architect
caused by the recent
death of C. Newton Prouty, who
Fiduciary Di¬
vision, Mr. Farrington being lo¬
cated at 30 Broad Street and Mr.
bers
,
$106.80
/
•/Boston Ins,
Continental Ins;
present and future resi¬
and
businesses.
National;
dents
vacancy
served
*
*
*
,
Mr. Richardson
1
Agricultural
Congdon said the new of¬
is in keeping with National
among
to ah announcement
the office of Edward L. Clif¬
ford, President.
P*-ice
Liq. Value
City's long-range policy of pro-viding facilities in growing sub¬
urban areas to fulfill the demand
for commercial banking services."
and Direc-' according
tor,
values
...
Fire
Aetna
1,
Lapham, President
'
Ratio of
Bankers
..
A.
June, 30,v 1957,
figures.
-
this data at the mid-year date.
are/taken. Prices are current
" -/./ /\ ;./
'.'*. " ./■„ ' ; ••'" •
Liquidating: Value to Present Price
Ratio
do not report
companies
Otherwise
shares of the par value of $20
City already has a number of cus¬
both of whom will con¬ each.
• •
'
...
tomers in the area which the new
i\t
*
!':
tinue to be active in the develop¬
branch will serve.
Manager of
ment function of the bank.
John M. Richardson, was the
office
will
be
announced
The
Development- Committee
elected on Sept. 24 to the Advi¬
later, he said. /
also includes the following: John,
sory
Committee of the Spencer
General contract for the build¬
W. Hanes, Director; Olin MathieOffice of the Worcester County
ing has been awarded » to the
son, Chemical Corporation; Lewis
Trust Company, Worcester, Mass., Leonard
H. Krill Co., and ". the
Oct.
beginning to show some; impressive relationships. In some
Dec. 31, 1956, liquidating value figures have been used as,
cases
*•
27,500
of
consisting
$550,000,
are
Mr.
fice
of the pronounced
unless, of course, there is quite clear evidence,
that an upturn in bond prices impends.
For those investors'/who put store cn the price-liquidating
ratio, we have prepared a table of these figures, because they
decline in bond price,
year-round air con¬
design and
ditioning.
*
*
Si!
•
mittee.
members
operations to proportionately large
lacked attraction as a purchase because
has
of Southern New
Binghamton, to join the Cleveland, Ohio, will begin this
week, Sidney B. Congdon, Chair¬
Syracuse bank on Sept. 1.
man of the
Board, announced on
Mr. Candall began his banking
Sept. 24.
career in January, 1929, with the
The new office will be located
People's Trust Company of Bing¬
at Puritas Road and West 150th ,
hamton, N. Y., which later be¬
Street.
came
the Marine Midland Trust
The new office will be of con-Company of Southern New York.
temporary design to blend with
Ho was elected a Vice-President
the
surrounding
neighborhood
of Marine Midland's Binghamton
and will feature modern interior
affiliate in 1952.
President;
Francis S. Baer, Chairman of the
Executive Committee; and John
M. Budinger, Vice-President and
Chairman of the Advisory Com¬
Other
company
York,
Ardrey,
H.
Alex
Also weight should be given to portfolio
that has right along been committed in
etc.,, etc.
Trust Company
Committee
ratio,
holdings. A
its portfolio
holdings of high grade bonds
investment income, price-earnings
growth over a period in
Arthur
Admiral
recently retired
Joint Chiefs of
in
Branches
Laird, Bissell &
Members
Members
120
New
Meeds
Exchange
Exchange
YORK 5, N. Y.
BArclay 7-3500
York
American
Stock
Stock
BROADWAY. NEW
Telephone:
Bell Teletype—NY
(L. A. Gibbs, Manager
Specialists in
1-1248-49
Trading Dept.)
Bank Stocks
Burma,
Aden
land
Protectorate.
Authorized Capital
Paid-Up
Tanganyika,
and Somali- •
Kenya,
Uganda. Zanzibar,
Capital
£4,562,500
£2.851,562
Fund
£3,104,687
The Bank conducts every description
banking aid exchange business.
Trusteeships and Executorships
also undertaken
Reserve
of
Volume
186
Number 5676
,
The Commercial and Financial
Chronicle
.
.
(1335)
The Mew Mature
market. He thinks in the
long run
not the short rum He thinks of
Economy
the
And the New Inflation
By JOHN R. BUNTING, JR.*
Economist, Federal Reserve Bank
Associate
V.
'
our
neither
age,
finds
old
senility
than
in
earlier
served
a
•,
type of
new
decline.
economic
or
and thus,
years
periods: which
economist discerns
businessmen, and
consumers,
pected
Mr.
government
contrary
to
Bunting
adult
more
The
as
<
in
A
of
years
ago
heard
we
at
the saying "Old soldiers
die, they just fade away."
never
It seems
to
of
some
who
us
the
.
(3)
read
Our
ade¬
more
quate in terms of current and for-
literature
seeable
requirements.*
in-
only
new
sets
old
'fit
the
e
planation
the
the
Certainly there
it
called "the
Many will
houses,
cars,
are
suming. But the changing nature
of
consumer
demand prophesies
inadequate capacity in other lines,
tion.
population
it
said
totals
not
that
expenditure;
closed—there
push
no
not
1930's.
the
But
war
after.
>
soon
of
as
it
It
to
room
everyone
made
to
ac¬
deep
a
haunted
years
(How
was
pectation
of
us
eight
im¬
the
orr
to
part
of
total
spending has
hit
10
watoes
to
salaries
and
climb.
What
v\il
these
'
t
of
Glws
suggest
is
that
National
-National
I0*®
relaxation^. in?ernationa!
some
tensions, since other
spending
seems
government
almost certain to
increase> Certainly state and local
'
,
.
,
employers' spending for schools and highways
will be under constant
pressure to-
looks
if
as
it
will
continue
will
Famous printing
stop,
a
To
some
tion
is
a
Mature
extent, the whole
t matter
of
economy,,
car
the
old
unfortunately
cbnnotes very old age and
senility.
word "mature" were taken,
If the
without
these
connotations, • it
might he fairly descriptive of the
current
tem
would
Our economic
scene.
seems
earlier
adult
more
and
years,'
deny that
our
suming groups have
grown
'*
If
the
interim
period
them that
new
Some
car.
be
after
ex¬
can
million
the
its
ashtrays
afford'
shore
full,
are
occasional
an
some
at
items
The
and',
recession
.
of
barely observable.
to caU
! early
{
194?)
Some
steam.
mass
hi-fi
In
the
meantime,
markets for air
was
sets-,
dishwashers,
Continued
to
on
inks of
a
they
Like homes and
cars, television
are- still
popular but '
been
'
;
gain acceptance,
or
Now,, however,
a
piano
washer
roCk
develop¬
ing. It is different from the first.
It isn't shrouded in
gloom. It has
a
The- New
new
Mature
not
as
in
the
.
tention.'
!
ster
yet
be ehar-
by
noticeably
slower
growth in business activity. About
1965
ered
or
in
so, a. new era will
when
1 burgeon forth
once
be ush¬
the
at
tapks
petizer
economy will
1947-1956 speed
and-
?
comes
War-created
cars,
about' because:
Are
pe-
(1)
shortages of homes,
etc. have been
appliances,
of
we
The age composition
population is such that
family formation is taking place
our
*Frrm a talk by Mr.
Bunting before
the
Philadelphia
Bankers
Associations
Summer
Sr**ool,
Buckwell
Lewisburg, Pa.
University,
high
at¬
The almost endless
re¬
Sinclair and Valentine
are
f
be
we
where
/
made
mature. But
which
their
cost
-
.
consumers.'
about
people
the
«
market
funds
Or do
new
money)
thunder of multicolor
These* precisron-lMended inks
we
ways
PROGRESS
REPORT
MAILED
REQUEST
ON
under
mean
to
essential.
(most of
the United States,
Canada, Mexico, Cuba and Colombia
joined the American-Marietta Company—'adding another
important member to the family of top-rated products that
have made Americans-Marietta' a leader in so
many fields.
The honored
A
concise
Marietta's
report
of
American-
achievements
,
during
the-nine months of its 1957 fiscal
year.
To
obtain
Department il.
a
-
copy,
address
known
as
a
During the
and
■
for enriching
lives.
first-quality reproduction is
preferred in the
are
in
when
mean
mature
consumers-have sharp¬
their taste buds, and are
searching for
the
to
You'll find
printing crafts¬
for
that
ened
ply their skilled trade
men
ap¬
over.
sweet" wherever
fast-growing packaging field,, in. publishing, and oh every job
1
can
from
known the world
signal of .the
'
db
are
rolling: "smooth and
presses.
place and -hoarding
the mattress?
priced
them
variety of fine printing inks produced by
neighborhood
in
talking
withdrawing
filled. ' (2)'
'of
and tape
consumer
what
talk
more.
The slower growth interim
riod
sets
counters
exactly
we
say
•
family of products
are
being bought at all
levels of the income ladder.
|Lob-
f acterized
•r
and* increased
new
calling the*
between" years will
AMERICAN-MARIETTA
Records,
classical are
and
Hi-fi
announced as such, .but its* supermarkets
general outline is fairly well de- times.
fined. It says that 1957 is the first
Yes, a case
year of an "interim" period. These1*
i "in
a
room,
kitchen.
roll
! been
:
talkj of
recreation
part of the
corders ;
Economy
thesis' Has
the
and
enjoying
Hollywood ending—happy.'
The
!
for
rtow
...now
conditioning ^orj at least one
bedroohn, a clothes dryer ih the
basement, and an automatic dish¬
mature
new
thesis' may be
Consumers
air
said.
economy
quifre as
as here¬
attention
tofore.
il's
so
they
don't seem to command
much consumer
1905'
-The mature economy
thesis was just one of those
ridi^;
culous motions that in times of
!
hat
■*
sets
•f clinched it.
stress
frayed,
new
t
refused
Boom-in
another
new
name of Sinclair and
Valentine, favorably
leading ink producer since 1890, will be retained.
years
ahead, you
may expect
1
continued growth
technical'advances in the skill-of producing
quality
printing inks.
;/
•
t
'
■
*
>
.
'
The
The
said
Mature
new
to
be
Businessman
mature businessman
much
different
his prewar
counterpart.
i
AMERICAN-MARIETTA COMPANY
is
nor r*sY
Ontario
He is not
Revelations In Progress
frightened
actions
street. crictaoo
from
into
hasty, ill-timed
by gyrations in the stock
PAINTS
•
INKS
*
RESINS
•
CHEMICALS
•
HOUSEHOLD
it,
Illinois
Through Modern Research
PRODUCTS
•
for
mass
BUILDING
MATERIALS
•
new
conditioning,
trip to-
looks
one
course,
for. mother.
-
what happend in 1953 and
1954 anything more than a
mild readjustment.
old
of
of
consumption m^y be running out
of
or
the
economy thesis.
were
least, the demand
traditional
mountains, a dinner
unemployed in 1946 and 1947?) - out lor the
whole family
every
1 Slowly,
however, we moved5 away now and
again, a new suit for dad
jfrom the shadow of the mature' before
i
con¬
up.
happening is that, for ^he
moment
have
consumers
in
few
changed to "transition period" it
might suit better also. What seems
are
looking*
spending. Ad¬
of
areas
sys¬
than
only a
major
consumers
other
ques¬
semantics.
down,
new
on
con¬
Growth May Not JSe
Affected
to
cirninfj
sector
figured out for themselves that if
they drive their present car even
there¬
reconversion
based'
a
new
government
tinue to lake
about the present
bite from the total income
pie.;
swimming pool can be installed' in
the backyard for the
price of a
during
and; shortly
much
planning
The
mature economy thesis
says that government
spending as
*
the
bedroom.
buying
payments
were
cepted this diagnosis, even in the
pression.
policy, and * the
encouragement of steady economic
,
were
settling
vertisements remind
sure,
underwriting,
economic
showing
wanted
are
room, or
Instead
as
out.
To .be
clical
to
seems
maturity. To some
recently that con¬
tastes were very limited.
They
ation
one
was
lending,
govern¬
depend upon a marked reduction
iii demand from the
military. As
good a guess as any
might be that
for
such as
anti-cy-
services
entirely likely that
improving their homes by gar¬
dening, adding an outdoor fire
place, an extra bathroom* recre¬
tremendous
frontiers
our
forces
who
many
are
that
continue
bigger and better houses,
and television sets.,
little.
our
were
involve
new
against
Now, however, consumers have
changed their ways of living a
it
growing
and would continue to
grow only
very slowly, our capital plant was
completed
and
additions
to
it
would
also
a
Fed¬
betting
until
consumers
cars,
it
for pleasant reflec¬
Briefly,
ing
newer,
re¬
Contemplating
doesn't make
All
thesis."
member
shudder.
jakerr on
for
new
seems
sumers'
econ¬
are
agree that consumers
signs of
was
mature
and
'/•■'.
,
The Mature Consumer
for
of
1 9 3 O's
omy
.
x-
depres-H
sion
Bunting, Jr.
but
services
projecting
demand
is"
ment
spending will form a smaller
part of total spending in the near
future. This,
total
make
catr
Alid"trialw°businessin l^-ue'ouess-
ers.
r
R.
traditional
/
times.
One
John
our
anyone
the
however,
growth. Of course, the main
Reason government spending is so
and television high today has to do with wars—
currently con- Past an(* potential,
we
It is
cut
m
For example, we
that
ideas
reclothed to
-
govern
portion of
a
.
Also, while the age structure of
It says, too, that our three
big rw nonulaiion makes for; a* .relaspending
groups- are
showing lively low level of household for/don't even' signs of
advancing age. Maturity, mation, it" also
promises slower
fade
away,
is
overtaking consumers, busi¬
they're just
nessmen, and government lead¬
ei
>
as
in
services
the odds.
product has been expanding since
most of us can remember. There
has been good reason for this. In
l} society like ours, the demand
*or services from government is
constantly growing—not only lor
much to support
proven
eral
Government
that
And
decline
the
slowly new services.-During many of our
On
the .lifetimes
'the - government
has
very
climb.
businessman,
economics
on
that
-
in
Mature
seems
spending
Certainly, capacity
industries stems more
than heretofore in the
we
mature
did
The
thesis.
than
he
It
economy
l960's;
the
postwar period.
a
capacity to produce is
come
many
have
much slower rate' than in the
earlier postwar years.
a
mature
was
later
more
few
lot
rate of growth in the transition
period ahead o
over the
years since the war."
a
violent
the other.
or
new
past decade,
This may sound fanciful to
some,
but it is a real
probability.
stable—
more
The
than
sudden
original
adequate
it has
as
be .much
surface, there is*
the
is caused
dicts "as rapid
such,
spending
businessman's
to
will
until
y
.
phenomenon of inflation during this transition period
by "cost pushers" or "demand pullers," and pre¬
present
As
new
cent
period to the upturn phase exExpresses inability to detect whether
1960.
the
as
invest in labor-saving
machinery,
therefore, may find himself iheffect vesting more in the next
10 years
mature economy thesis
purports to prophesy that spending on plant-and equipment has
reached a plateau from which as-
transition
past
well
as
"
of
pretty much an ex
planation for the virtual collapse
of
business
spending
on
new
plant and equipment in' the 1930's
current transition
after
said
thesis
'
preludes to recession-depression,.:
doubts present declines will interfere with the
successful- bridg¬
ing of the
new
subject to
swings one way
which, unlike the 1930's, connotes
economy
actions
implications
profits for his firm.
the
The
Philadelphia Reserve Bank
social
less
Philadelphia
Lecturer in Economics, Temple
University
maturity in
his
on
is
of
broad
19
CEMENT
outboard
page
34
The Commercial
and Financial Chronicle
...
Thursday, September 26,1957
(1336)
20
Viewpoint Coupled With
Canada: A Conservative
A
Continued from
Deals
United States, we are
benefit from new
wholesome for the
was
confident that Canada will
leadership and a fresh political
viewpoint.
Certainly
on
Canadian
the sturdiest
Canada's system
counterpart, stands
in the world.
currency
of branch banking could well be
in
supplies its customers' needs for deposit
perfectly magnifi¬
and loan facilities and for the
solvency
cent
crossed
most nations both from the way
emulated by
which it
magnificently.
dollar, which in August
$1.06 in terms of its American
about
this nationwide system has
>
...
.
I
»4-
""V '■! <")
•
'*
achieved.
In
some
contrast with the hesitant
implemen¬
$30 billion dollar road building pro¬
in the U. S., Canada's transcontinental high¬
is proceeding briskly and should be finished
gram
on
cubic feet of
natural gas
markets, in highly popu¬
industrialized areas were all there wait¬
ing—waiting only for transportation. In the West,
Northwest United States—in the
Vancouver and
Montreal, and smaller cities on
So 1957 came up with two magnificent
East, Toronto and
the way.
45,000
mile combined railway network
provided by the Canadian Pacific, and Canadian
National Railways, with the related bus, airplane,
boat and hotel facilities, give the traveler swift,
scenic and comfortable transportation, over some
of the most magnificently picturesque geography
in the world; and several hundred new miles have
significant recent development in
Canadian transportation has, of course, been the
remarkable expansion of pipeline mileage. Be¬
seven years ago, the Interprovincial Pipe
Line for oil was built running from Edmonton,
ginning
Peace
River fields of British Columbia
Vancouver and the
to
international border. Capable
the throughput
daily,
boosted
by over 50%.
received
and
on
over
the second and far larger project
launched and financed
—
the Trans-Canada
Thirty-five thousand Canadians
Pipe Lines Ltd.
6,000 Americans purchased securities in this
and
2,250 mile network to provide gas to a broad
southern belt of Canadian communities all the
from Alberta to Montreal. Over 800 miles is
completion this year.
way
scheduled for
Gains for Investors
petroleum transportation has not
only been a powerful addition to the wealth and
development of Canada but it has unfolded hand¬
some opportunities for investors.
Gains of several
hundred percent were achieved by early investors
in Interprovincial and Trans Mountain equities;
and the common of Pacific Petroleum's (which
owns
one
million shares of Westcoast Transmis¬
sion Ltd.) has
Trans
$1
soared, in
a
share to above $30.
a
history—$20 to
few short years, from
Other
prosperous
and
every
Alberta.citi¬
is the big
Saskatchewan
along fast, particularly in the Southern
in petroleum* production,
come
part, and British Columbia is
rapidly developing
significant oil and gas reserves.
Leading Oil Beneficiaries
the "land plays," Calgary &
Among stocks,
Edmonton and
In the East,
was
has
$650 million in revenue from oil;
Sept. 4 started the most unique oil royalty
While Alberta led off (and still
zen.
Security Freehold, have taken on
drillings 50 miles north and south
current
Merrill Pete, Canadian Petrofina, Canadian
gary.
Superior, McColl - Frontenac, Great Plains and
Imperial Oil have all been brisk performers, and
among the newcomers, Scurry Rainbow^ a con¬
solidation of more than 40 small companies over
a
period, now presents a broad three
and multi-million acreage
five year
royalty
province
spread.
The metals for
which Canada is famous have
Copper, which recently hit
low at around 25c, has been a bit
dreary, and declines of 30 % to 80 % in the repre¬
sentative copper shares has taxed the patience of
holders and, at one point, made margin calls
rather epidemic in Toronto. General sentiment
now seems to be that copper has bottomed*, (and
zinc should stabilize forthwith). Producers such
had
a
a
tougher time.
four year
c
' INVESTMENTS
We offer to United States investors
BONDS
complete facilities for the pur¬
chase of high grade Canadian in¬
STOCKS
vestments.
Our facilities include!
A Research
Department with
up-to-date information on
major Canadian companies,
A
Markets maintained in all classes
mail.
♦
and internal bond issues.
Stock orders executed
Exchanges,
or
Private wire service to our
offices
the Montreal and Toronto Stock
on
Correspondence Depart¬
deal in securities by
ment to
of Canadian external
across
net New York markets quoted on request.
Canada.
Inquiries from investor*
are
DIRECT PRIVATE WIRES TO TORONTO,
CALGARY,
VANCOUVER,
BELL
SYSTEM
NY
AND
HALIFAX
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1-702-3
&
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Associate
Boston
Philadelphia
London, Eng.
Ottawa
Calgary
Member American Stock Exchange
40 EXCHANGE
Telephone
Canadian Affiliate
PLACE, NEW YORK 5
WHitehall 4-8161
—
invited.
MONTREAL, WINNIPEG,
VICTORIA
TELETYPE
Member Toronto, Montreal
and Canadian Stock Exchangee
Toronto
Montreal
Winnipeg
Vancouver
lively
of Cal¬
luster, and seem astride of the most
new
CANADIAN
r
decade
the Province of Alberta alone has
since Leduc,
can be, in due course,
So much for the drive to
the West.
Now the percentage of oil sup¬
plied internally is rising daily and, in the
leader)
South to Lake
Superior, and to the East. Then
Mountain Pipe Line was constructed to
the largest dollar import of Canada
petroleum.
was
Transmission Co. Ltd. pipeline from
Now all this
most
exploration has done wonders for Canada.
Oil
Ten years ago
pletion on
the
the big util¬
will benefit
heavily from the arrival of natural gas.
Westcoast
aluminum.
The
serving Toronto and Montreal
distribution in
pushed to the North to tap new-found re¬
sources
in iron ore, base metals, timber and
Pipelines
Quebec Transmission and, of course,
ities
Northern
Mid-Western, Provo, Peace River,
Gas, Inland,
First was the com¬
Aug. 10 of the $170 million, 650-mile
major Canadian achievements.
been
The Fabulous
growing gas companies include Great
of getting it to market.
huge potential gas
lated and
schedule.
The
market. In
production, trillions of
had been capped, simply
get West Canada gas to
of petroleum
areas
West Coast.
materialized—
initially of delivering 400 million C. F. of gas
tation of the
way
third economic urgency
a
the need to
the
And
Die-
basic economic grounds the
fenbaker administration shapes up
as
Next
because there was no way
World's Sturdiest Currency
The
burgeoning Alberta oil to the
flow
first page
from Fair and New
Dynamic Economy
Company
LIMITED
Investment Dealers Since 1921
50 KING STREET WEST, TORONTO,
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GOVERNMENT,
AND
MUNICIPAL
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,
SECURITIES
Volume
1£S
Number 5676
.
.
.
The Commercial and Financial Chronicle
(1337)
International
as
Nickel
(the largest), Noranda,
Geco and Campbell, had a
Normetal Quemont,
firmer look in recent weeks while the
comers
TABLE I
Cash Divs.
**
'
Maritimes, Granduc and Kilembe, which took the
worst share price
beatings, may well have re¬
corded their lows.
come
the bonds with warrants.
now
million
population living
withih 20j9 miles of the American border.
in the
Now
frigid sections of Canada something
far more valuable than
seals, beavers, and muskrats are the industrial
targets. The Great Slave
Lake may embrace the world's
largest ore bodies
of zinc and lead.
In the
northerly reaches of
Quebec at Ungava, iron ore is
being unearthed
which
billion tons.
Alberta, countless billions
of
In Northern
barrels
of
oil
which
are
Alaska
Highway running 1,500 miles from Peace
becoming one of the most
1957
0.50
ny2
4.3
13
0.60
8%
7.4
11
0.80
17
4.7
20
1.60
31
5.2
20
0.72
12
1957 ♦
allied
Devel¬
"Ord."
.
&
Corp., Ltd
Aunor
Gold Mines
Ltd
17
0.16
11
1.025
Ontario gold producer
Auto
ft'-'
■
t
'•
10 to 129 Years
V
'■
:
f
y
Electric Service Co. Ltd.
Service distributors of automotive
electrical carburetors <Xc
\
'
BANK
OF
MONTREAL
Operates 602
Approx.
Including
Extras for
Quota-
secutive
12Mos.to
tion
Divs. Paid
June
Based
on
BANK
Paymts. to
June 28, June 28,
28,
1957
1957♦
Operates
—.
,
24
0.40
b7%"
new
19
f0.90
Largest producer of aluminum
ingot in the world
oil
Colombia, S.
pipe
line
2.0
14
51/4
In
allied
2.00
321/4
6.2
3.4
on
page
and
2.10
58 \ 4
3.6
20".
125
sub-
on
w,/*
page
76,
-------
branciles in
22.
-*
1.50
,
Canada
.
'
5.60
Beatty Bros. Ltd
18
0.50
14
0.90 '
35
0.15
and
household
J
-A
...
V
bo%.
Makes nylon,
Quotations represent June 28,
1957
sale
prices
prior to that date. Bid and ask quotations
5 Add
*
or
as
the last sale price
of June
Canadian Exchange Rate.
Dividend paid in U. S.
Currency.
t Adjusted
b
are
current
Bid.
for
stock
28,
1957.
Ltd
bl7%
5.1
10y4
1.5
ill Canada
Ltd._
silk and rayon
♦
Exchange Rate,
Bid.
Continued
Do you know how
company may
If Horace
Greeley were in Canada today,
''Go North, young man!"
on
page
incorporated in Canada?
other business taxes?
ada great and a
great nation in which to live and
What
invest.
of
answers to
and eager,
economy.
Based
devices of
on a
banking and
a
the businessman planning
to set up
operations in
Canada—are
modern
enterprise
record of balanced
in
budgets,
our
to be
found
"Memorandum
Relating To Carrying On
excellently managed
currency,
these and
other questions—vital to
people. Alert, intelligent, ambitious
with their forward motion streamlined
by all the efficient
federal taxes? The
as
the
are
Business In Canada."
insurance companies, and
implemented by a lietwork of
the personal
there provincial as well
resources
800,000 square miles of timber land, the 66 mil¬
hydro electric power less than 20 % devel¬
oped, and infinite mineral and agricultural riches,
sound
are
income tax rates? Are
lions of
there
a
be "
How about income and
as
A Modern
Economy
Apart from incalculable natural
For your copy—free and
investment banking,
brokerage, and stock
exchange-facilities, the
without obligation—
to none.
write to Business
over
Canadian economy bows
No wonder it attracts investors from
all
the world. No wonder it offers
not
sands of
Development Department,
only thou¬
The Royal Bank of
interesting speculation protected by the
and financial climate, but a list
Canada, Head Office,
right -political
of great
corporations and mature investment
860 St. James Street West,
secu¬
Montreal, Canada.
rities, many of which have paid unbroken and
rising dividends for decades. And
all this tribute to
eyes on
placed before
your
Canadian newsprint!
The
,
incidentally,
Canada is
THE ROYAL BANK
Factual Record
OF CANADA
We realize, of course, that after
reading the
foregoing tribute
reader may
well
New
fine and dandy, but why^ not
document the attributes.
easiest chore
Head
to the Canadian economy, the
say,
imaginable,
This
as
common
stocks
on
Over 900
Central
pq
as
long
as
129
Itself!
years.
St.,
N. Y.
and South
in
5,.N. Y.
branches in Canada,
New
_
West Indies,
America,
York, London and Paris.
Correspondents the world
6Z?
contend speaks for
Offices
which consecutive cash
dividends have been
paid for
The record,
Office: Montreal
York Agency—
68-William
happens to be the
is evident from the
accompanying tabulations showing the Canadian
listed
8.7
Quotations represent June 28, 1957 sale
prices or the last sale pries
prior to that date. Bid. and ask quotations are as of
June 28, 1957.
§ Add current Canadian
b
dividends, splits, distributions, etc.
this can't pos¬
touch on all those factors which make Can¬
sibly
•
stable
\
against aerial implementation of Muscovite
A swift seasonal review such
12.7
threads for all purposes
Arctic radar
complex of Distant Early Warning
(DEW) calculated to alert and defend our civiliza¬
he'd say
3.9,
**£'■*■
,
/.
b44Vs.
equipment,
building supply retailer,
branches
Belding-Coiticelli
products
,38
,
J
etc.
pumps,
274
12
47
world
advertisement
Beaver Lumber Co.
Anglo-Canadian Pulp and
Paper Mills, Ltd
1.60
27
7.6
A.
and
branches
r—r
247
equipment,
*0.40
6.8
Barber-Ellis of Canada, Lld._
Stationery and printers' supplies
Lumber &
Newsprint
510
Manufactures barn
Andian National Corp., Ltd..
Operates
46
129
SCOTIA.
throughout the
Operates
•
8.4
agen¬
advertisement
NOVA
N a tion ale
5.2*
*4» 'pnn
Aluminium Ltd.
and
Banque Canadienne
.
'
branches
See Bank's
•
—Canadian $§—
Agnew-Surpass Shoe Stores,
Ltd. _1
OF
offices
1957
1.90
bl5
throughout the world
See Bank's
•
% Yield
No. ConYears Cash
cies
6.0
auxiliary
equipment
■
-
general hardware
strategic commercial arteries in the world. And,
at the
top of the globe you might say, is the vast
malice.
1957
products;
River to Fairbanks is
tion
on
18
Large wholesale and retail
Have Been Paid From
now
The Yukon still drips
with gold if
you hit the right sections, and the
28,
Divs. Paid
Ashdown Hardware
Co., Ltd.,
J. H., "B"
business in
♦
locked in Athabasca tar
sands,
and
mining Interests
Asbestos
lie
being extensively probed.
June
Paymts. to
June 28, June 28,
co.—chiefly
Investment
DIVIDENDS
more
may run to 60
tion
Mining & milling of asbestos fibre
development-
16
12 Mos. to
Argus Corp., Ltd._
CONSECUTIVE CASH
phase in Canadian expansion
90% - of the
secutive
Based
gold mining
co.—manufacturing
merchandising interests
Cash Divs.
quite recehfty has bxeeri East and West, with
also
On Which
deserves special current mention, and that is the
trend to the North. Most Canadian
some
Can.
Anglo-Newfoundland
Common Stocks
hemisphere.
until
operating
In
opment Co., Ltd.
Canada is the second
producer in the world and thus, to an
important extent, a guarantor of peace in- our
&
Interests
Newsprint
eagerly buy
uranium
new
Holding
CANADIAN
of age
tors scared of uranium in 1953
exciting
Quota-
-Canadian $ §—
and Canada has
more than lived
up to its billing, and its milling.
Geiger counters are now clacking less furiously
and, instead of location of ore bodies, the main
accent is on
delivery under $1,700,000,000 of firm
contracts for U-oxide at around $8 a
pound. Com¬
panies, only exciting names three years ago, are
mature enterprises
today—Gunnar, Algom, Pron¬
to, Denison, Stanleigh and Stanrock; and inves¬
An
Extras for
Anglo-Huronian Ltd.
v
now
% Yield
No. Con-
Years Cash
LISTED
World's Second Top Uranium Producer
Uranium has
Approx.
Including
»
like
21
Total Assets Exceed
over.
3]/2 Billion Dollars
22
The
for
scribe
Consumers Power
Co.
vertible
Morgan
Stanley & Co.
and
comprising
28
investment
firms offered for public sale on
Sept. 24 a new issue of $35,000,000
Consumers Power Co. first mort¬
bonds, 4%% series due
Oct.
1, 1987, at 100.639% and accrued
interest,
to
yield
4.71%
to
maturity. The issue was
the
to
Sept.
awarded
at competitive sale
group
23 on its bid of
indicated counon.
9.9.8199%
for the
Sale
bonds is part of a
of the
which also in¬
proposed offer by the
to the holders of its
stock of rights to sub¬
financing program
cludes
a
company
common
Consumers
Company supplies electric
Power
26,1957
to
Sept. 30,
amount after
on
or
To
pl
V//
keep
before
income
in
-
„
a
of current economic
discussed
bulletin, the
Hill,
The
in
below.
our free mailing list.
Co.
Brock
_.L
40
1.40
51%
42
2.00
42%
12
0.40
b6
6.7
31
1.80
36
5.0
10
0.50
21
f0.775
14
11
0.70
11
6.4
15
0.80
%
$
21
0.10
34%
0.3
27
1.20
231/4
'5.2
15
0.10
b2.80
3.6
13
1.50
39
3.8
103
4.45
150
3.0
of
supplies, hardware,
plumbing supplies, etc.
r
.
.
-
in
Dredging, Ltd.__
is
Steel
rolling mill
Burns & Co.
Economics Department
Caldwell Linen Mills, Ltd.__
Makes
wide
cotton
products
of
variety
Leases
,
oil
gas
Corp.,
drilling rights
in Alberta
Dominion
&
Canada
Kip ley
Joseph
and
Cane
correspondent
,
—
beet sugar
Canada Bread
Bread
and
and
and cake
refining
Co., Ltd
wholesaler and
retailer
Canada Iron Foundries, Ltd.Holding and operating company—
machinery & equipment interests
*
Canada Life Assur. Co
One of the
largest Canadian com¬
panies underwriting life,
accident
and sickness insurance
♦
the
net
prior to that date. Bid and
was
added
entire
share
capital
worth
of
y
sale prices or the last sale
ask quotations are as of June 28,
Quotations represent June 28. 1957
§ Add current Canadian Exchange
price
1957.
Rate,
t Adjusted for stock dividends, splits,
issue. No Exchange trading,
distributions, etc.
i Inactive
b
Bid.
Continued
on
page
24
r
R0YALITE...
acquired. Philip Hill,
are
a
fully integrated Canadian
Petroleum company.
of
EXPLORATION
which
Philip Hill
PRODUCTION
Sir Brian Mountain,
Star-Insurance
REFINING
Ltd.; Harold C.
Chairman
of - British
'Company
Traction
Electric
neth
Preston,
H.
Textile
i In¬
Sugar
Co., Ltd.
*
equivalent to about $40,000,000.
ance
Monthly Review.
5.5
linen and
Edmonton
&
Calgary
proprietary
Drayton,
complimentary mailing list to
<
related oper.
&
Ltd. "B"
4Co. Ltd.; Rudolph E. F. de Traf•ford, i Chairman of Atlas Assur¬
King St. West, Toronto, Canada
13.2
3.80
ucts, etc.
Chairman of Eagle
The Bank of Nova Scotia
'•
lards, butter, poultry prod¬
Meat,
when
the
4.7
dredging project
gold
Burlington Steel Co. Ltd. new
Higginson* name
Trust,
r
'
Guinea
New
Philip Hill, Higginson- is equiva¬
lent
to
about $3,000,000, all
of
which is owned by the Philip Hill
abroad
2.7
,
Building Products Ltd.__
Philip E. Hill under the
Philip Hill & Partners.
1950
4.2
-12
Telephone
(Stanley) Ltd. "B"
Operates a
Included among the
receive the
0.50
largest privately owned
Bulolo Gold
Ripley,
directors
put me on your
10
.
Higginson also owns all the shares
of Philip Hill, Higginson & Co.
(Africa) Limited, with offices in
Johannesburg and in Salisbury,
py-
Please
1.8
Laundry
Ripley added .That Philip
Higginson was founded by
The
44
54%
in Canada
Rhodesia.
•
1.00
telephone system in Canada
capital of the banking business
of
Higginson
&
Co.
Limited,
which was established in London
The BANK of
»
48
Ltd.
Co.
"Ord."
Second
in
in 1907, was
500 branches in Canada and
5.8
insulation
by
Philip
late
the
larly, simply complete and mail the coupon
you on
30
Asphalt roofing, flooring and
London
Mr.
growing number of
wish to receive the Monthly Review regu¬
glad to put
:
Columbia
British
one
name
We'll be
1.75
Holding co., controlling B. C.
Electric
Ripley board of directors.
businessmen, and could well be of interest to you.
If you
23
,
producers vt
largest
timber products
of
Harriman
Ripley will be the New York cor¬
respondent of Philip Hill, Higgin¬
son.
Also, that Philip Hill, Hig¬
ginson is acquiring a minority
share interest in Harriman Ripley.
Kenneth A. Keith, Managing, Di¬
rector of Philip Hill, Higginson,
has been elected to the Harriman
presented in these concise reports
proved valuable to
7.7
British Columbia Power Corp.
arrangement
Monthly Review.
has
9%
-
Ltd.
the
of
One
Mr. Ripley
that the
the
Information
V
Products
and $36,-
head-J
Harriman
by The Bank of Nova Scotia in its
fO.75
British Columbia Forest
Hill, Higgin¬
son
will be
affecting Canadian business is
17
said
is
interest
bonds, revenue
distribution
agree-
which
matter
7.6
Petroleum, .production* refining,■'-*/-
London, Eng.
The Bank of Nova Scotia
some
notes,
British American Gil Co. Ltd.
banking house
vVLoutfijvj Review
b5i/4
stamps, and similar items
•:
•♦A
respective periods was
quarters
0.10
0.40
Bank Note
Ltd.
Co.
Makes bank
Philip
Hill,
Higginson &
Limited, a
with
5.6
1.77
13
24
interests in Brazil
British American
vestment
month,
hQrd."
Power Co., Ltd.
prominent in-
Each
Ltd.
Ltd.____
Hats
Brazilian Traction, Light and
with
ent
4.9
40%
2.00
system
fqr felt and wool felt hats ;
Men's
rated, 63 Wall Street, announced
that Harriman Ripley has entered
in Canada!
June 28,
1957
Quebec gold producer
Biltmore
Joseph P. Ripley, Chairman of
Harriman Ripley & Co., Incorpo¬
an
Paymts. to
June 28,
1957
1957 ♦
—Canadian $ §—
and Quebec
Belleterre Quebec Mines,
for
Harriman Ripley Co.
on
tion
June 28,
secutive
Years Cash
Ltd.
into
® *
telephone
important
in Ontario
London Gorresp.
business trends
If
Most
income
deductions
for
$39,602,000, $37,888,000
134,000.
12Mos.to
Extras for
Bell Telephone Co. of Canada ; 77
■
Gross
1955.
in
% Yield
Based on
No. Con-
Divs. Paid
1957 the company had .total
operating revenues of $214,073,000,
compared with $208,393,000 in the
1956
calendar
year
and $189,432,000
Approx.
Quota-
Including
30,
Sept. 30, 1986.
you
informed
Cash Divs.
months ended June
12
the
For
Viewpoint
Coupled With a Dynamic Economy
Diverse utility
prior
1958 to the principal
100.639
from
range
21
Canada: A Conservative
1,497 communities and
in
service
group
a
each of the
I
Continued from page
the
within
.
by
gage
Operating entirely
of
Michigan,
States
to be headed by
distributes and sells natural gas in
Morgan
Stanley
&
Co.
The
286 communities. The company's
proceeds from the sale of both
service
territory
includes
the
issues will be used for acquisition
cities of Battle Creek, Bay City,
of property, extensions and
im¬
Flint,
Grand
Rapids, Jackson,
provements, for refunding certain
Kalamazoo, Muskegon and Sagi¬
outstanding obligations, including
naw.
Population of the territory
short-term,
bank loans, and
to
served
is
estimated to exceed
reimburse the company's treasury
3,700.000. Consumers Power is en¬
for construction expenditures.
gaged with 25 other companies in
The
mortgage bonds
are
re^
research and deveJopment work
deemable at 109% if redeemed on
relating to the generation of elec¬
or
prior to Sept. 30, 1958* and tric energy through the use of
thereafter at prices decreasing to
nuclear fuel. The Power Reactor
the principal amount after Sept.
Development
Company
was
30,1986. Special redemption prices formed to carry on this work. ;
by
underwriting group headed
An
$35,156,700
of con¬
due
1972,
also be underwritten
debentures
will
which
Offered
4%% Bonds
*
Chronicle...Financial
Thursday, September
Commercial and
(1338)
22
Ltd.;
Co.
PIPELINES
Ken¬
Chairman
of
NATURAL GAS
Machinery Manufacturers
John R. Colville, for¬
merly Principal Private Secretary
to Sir Winston Churchill.
Co.;
and
MARKETING
Joins Julien Collins Co.
state
(Special to The Financial
City
or
Chronicle)
CHIC AG O, 111 .—John
Company
has joined
I
*
lins
&
j&hM WMMkmMS-4.mm
west Stock
South
105
Exchange.
La
of the Mid¬
N
COMPANY,
OIL LIMITED
X Collins
the staff of Julien Col¬
Company,
Salle Street, members
ROYAUTE
Prov.
CALGARY, ALBERTA, CANADA
Volume
186
Number 5676
.
The Commercial and Financial Chronicle
.
.
(1339)
newsprint,
Economic Aspects oi Canadian
And American Cooperation
70%
result of the initiative taken
a
imbalanced trade
than the
ous
raw
by
some
forward-
sides of the border.
Present
to
establish
ricated.
future merchandise balance at
level of total trade.
Notes that
a
so
still
a
resources
economic
aspects
in many cases.
of
the future
cooperation
terest
like
are of particular
in¬
businessmen
I
would
to
to
discuss
them.
To
begin
with,
trade
between the'
United
at
oil, coal and cotton.
readily be observed that
,.v
In
•
States
greater
than
that
two
capital
world.
tenfold
But. I
It
ex¬
our
to¬
W.
John
Joneo
exceeds
entire
-J
v
total trade with
our
continent
is
country
of
the
other's
asbestos.
It
is
best
second
our
of
source
whisky
United
is
most
and
Ca-
>
economy.
The
figures
themselves.
really
In
speak
1956
the
port
of
States
59%
purchases
of Canada's
produce,
Canadian
States
23%
or
ex¬
higher
share
in
imports
general
United
of
have
also
is
23%,
risen
from
it
shut
.
Canada
becomes
would
1953
The
to
bestos
users
would be
In 1952 Canada's
level
This
us
tons
of
even
nickel
little
relatively
a
and at
tariff rates
only
Their
worse
rough
hundred
be
problems can
mentioned in
passing.
solution
and
will
expert
governments,
exported
of
require .tho¬
study.
course,
constant consultation
on
Both
are
in
these and
compared with our produc¬
of
650
tons
and
huge
re¬
in
ore
Canada
to
industry,
supplying
supplement
.
United
States
as
In
gas
both
directions
Oil
also
now
There
in
this
is
the
an
two-way
example of
Portland,
Me.,
to
pipeline.
considering the project of hydro¬
electric
power
quoddy
Dam
from
which
a
Passama-
offers
such
potential advantages for the state
of Maine.
,
<
"
To sum up the economic pic¬
ture I think it safe to say that un¬
der, the leadership of forwardof the border
pathetic
and
support
on
with
of
both sides
the
sym¬
enlightened
administrations
there
every
in
"enlightened self-inter¬
The
in
each country
is
at
the
present
time
outlook for increases, both
trade
tween
and
in
investment,
be¬
countries.
our
her
Enlightened
fortunate
the
many
areas
in
some
which
Canada and the United States
operate.
that
"Why?"
occur,
cooperation
if
all
to
There is
ternational
tries
co¬
I think the next question
must
affairs
died
our
of
nothing in in¬
that imposes
between
two
U. S. exports to 21%
export trade.
out
to
keep
the
Examines Trade
This
difference
has been the
cern
it
would
$1.4
on
them
con¬
Cable Address:
PARIS
developing
emo¬
tional patterns of distrust and dis¬
like.
We
began therefore with
clean slate and could
a
little more closely at the
components- of
our
exports
to
Canada.
A
reasonable
estimate
would be
that about one-third
Quebec
•
Ottawa
•
Trois-Rivieres
•
St.
Hyacinthe
•
"fellow
are
lar
paid for from
Canadian
L. G*
BEAUBIEN
S CO.
dol¬
LIMITED
They are primarily
they are as justly
their heritage and in-»
Canadians
and
of
proud
stitutions
of
voted
and
We
ours.
to
country
as
each
of
are
particular
our
characteristics.
Each
ship
it
Instead
companies
to
Canadian
of
being
a
which
Members Investment Dealers' Association
then
subsidiaries.-
drain
on
international
A
this type of im¬
actually adds to Canada's
equipment pool. Moreover, by increasing Canadian productivity it
port
tends
to
increase
the
country.
capital goods
selves
the
production
•From
a
the
These
wealth
of
imports
of
hold within them¬
promise of increasing
so
talk
as
to
establish
by Mr. Jones
Joint
Service Club, Portland,
the occasion of Canadian
before
Maine,
in
the
on
Friendship Day.
*
tries
In
is
have had
such
chief
ours
which
manpower
economic
factor
through most of their histories,
cooperation, if only on a local
community basis,' was
an
eco¬
nomic necessity. Today when pro¬
duction in the United States has
outstripped
in many
its
cases
natural
resources
and when the Ca¬
nadian industrial potential is de¬
veloping at an unprecedented rate,
that cooperation'remains as mu¬
tually beneficial as it has ever
been in our history.
Then
again there haive been
against our national se¬
curity. Three times—in two World
threats
Wars
side
in
and
States
and
Korea—the
Canada
side
by
in
United
have
the
fought
interest ;o£
mutual defense and indeed of
the
whole
our
Free
still
World.
still
are
threat to
today
Today
faced
with
a
security. And
working to¬
other Allies,: to
our
we
are
gether, with our
and, if necessary, to defeat
meet it
it.
A
None
ever,
of
Way of Life
these
the sole
>
1
things
reason
Continued
•
'■>
Sherbrooke
Richepance
FRANCE
t
Cable Address: BEAUBANK
Jf
Branch at St. Pierre
Cable Address; BIENCHAUD
Telephone: PLateau 2171
coun¬
development*
as
shortage of
a
the
as
*
economic
countries
221 Notre Dame Street West,
MONTREAL
dif¬
scene.
L. G. BEAUBIEN
PARIS, (8e)
nadian resources,
is
own
is, how¬
why we are
coun¬
Shawinigan Falls
rue
national
country
major interest for both
Telephone: PLateau 2171
I,
de¬
complement each other in the
we
of Canada
Ca¬
are
us
ferences which do not separate us,
but on the contrary, assure that
holdings, but is purchased by
American
we
completely conscious of its
destiny. Happily, these are
BRUSSELS
BANQUE
North
Americans."
of
large part of this equipment is
not
a
our
operation, may I add parentheti¬
cally, exists only partly because
Canadians
these consist of capital
equipment.
A
develop
cooperation without prejudice or
preconceived notions.
This
co¬
Exchange and Canadian Stock Exchange
look
of
were
CO.
221 N°,re Dame Street WeSt>
MONTREAL I
BEAUBRAN
Canadian friends
perhaps be well to
going.
continent
our
billion
of some
source
among our
and
Members Montreal Stock
Imbalance
of
early
circumstances
not conducive to
they do not wish them¬
BEAUBIEN
the. old
relatively
absolute
figures,
Canada
exported goods to the amount of
$2.8 billion to the United States
L G.
under
Such
and there were
economic nor population
of
goods
Canada
from
were
In
last
year,
and
imported
valued at $4.2 billion.
more
history
Moreover,
early life
is
us
and
circumstances.
countries
Self-interest
explored here in
or,
relationship
there
as
world
in
States
their
feuds
grave
We have
detail
United
began
in
moves
the border.
across
travels
looking businessmen
economic
.
and
Finally, I should like to men¬
tion the study group which is now
narrow
with the protection of its
These
are
ore
a
than'
developing industry.
•
iron
Canadian communities.
Montreal
tend
somewhat higher
United
States
rates.
reflects obviously Canadian
iron
natural
this
or
Canada is rather in
Canadian
concern
compared
one
is
are
addition
serve
The place where our
cluster in
range
regards
with U. S. production of only one
million tons.
Our nickel and as¬
off.
tariff
as
street/
products, particularly
manufactured, where the rate is
-high, sometimes prohibitive.*
ap¬
to
fact,
non-staple
practically
As
the
pinches
tariff
down.
in
trade
obstacle.
in turn would nat¬
might well be
used
On
no
of
our own resources.. Canadian
nat¬
ural gas reserves have also
proven
to be extensive and
lower
recently,
est."
14%
total
our
Canada,
considerably
of
in
Canadian
versa.
,
compared with only 14% in 1935.
Canadian purchases in the United
States
is
vice
grow¬
United
levels
new
There
gas.
serves
from
other problems, such as the sim¬
660,000 plification of customs
regulations.
ton export of asbestos to us with
Even more encouraging was the
our
output of 52,000 tons. These announcement on
July 15, by the
are merely a few outstanding ex¬
National Planning Association, of
amples of many raw and semi¬ the formation of a
joint commit¬
manufactured products for a sub¬
tee—not of government officials
stantial part of which we are de¬
—but of 40 prominent Canadian
pendent on Canada.
and American business, labor and
In terms of Canadian trade this farm
leaders, for the purpose- of
means
that Canada sells the U. S. devoting itself to a factual
study
over 80% of her total production of
of the major problems facing our
than in 1935.
The
Canada
than
products
the
the
commodities, for example, in
developments are al¬
which,
period about 40%
duty-free.
Our v average
dutiable
This
natural
same
rate'-on
many
to
tion
imports
consumption
was
73%,
as
against 57% in 1935. At the same
United
that
have
to
for
United
States' share in Canadian
represented
-industry,
thousand
for
time
Canadian
at, the importance
products for United
from
from
well-known
oil is becoming
increas¬
important to the United
States'
imports
past few
relatively few staple raw and
semi-manufactured products. On
American
newspapers,
for, in¬
stance, five million tons of stand¬
ard
i
newsprint > were
imported
uranium.
States,
-
States
establishes
ready in progress
our
the
As
in
which such
a
American in¬
dustries, in the absence of imports
Canada is a major supplier of
newsprint, nickel, aluminum and
important
Two
the other hand, as I meneprlier, the bulk* of our
imports from Canada consist of
now
Canadian
parent
Europe.
customer.
Canadian
the
were r
,
Products
Looking
of
It
the
in
such
-
also
in
that
urally lead to increased Canadian
purchases in the United States.
not exist for
HoneH
do
on
increase.
population
well
raw
*.
the
us
<
coun¬
America.
Canada
Of
indicates
goods is almost certain to expand
years, some 55 to 60% were duty¬
free.
Of Canada's imports from
un¬
to
mean
Dependence
tries of South
ingly
are
say it is far less than
figures might lead one to
believe.;.-'- '
;5=' / *
the
since
ceeds
I do not
tal trade with
nadian
by ; Ca¬
imply that no
problem of imbalance does exist.
It
1935.
in
goods
do
self-interest"
pressures
all
demand, the market for Canadian
the Tariff Problem
countries.
from
pur¬
■
has increased
Each
two
the
are
National
ent
.
countries in
the
there
problem
of
textbooks,
"mutual
neither
conditions,
evidence
will
States
the
and
substantial portion of the pres¬
trade each way between the
a
trade
doubtedly imports in that they
must, be paid, for from Canadian
resources, they also serve to in¬
crease
the
country's wealth by
raising productivity.
-
all
Solving
,
any
other
to
us
are
seeking
dynamic growth of our rela¬
will not only ^endure
but
e
be¬
tween
the
of
ing
the
in
Growth
these
with it.
'
nadian firms. While these
and Canada is
far
total
Given
materials.
brings
to
commendable
themselves
men
Dynamic
It will
tionship
protection
is
it
the initiative
that approach.
purchases from Canada are
largely of raw or partly processed
,,
existing today.
addition
chases
of
trade
taking
tariffs.
r
level
of
that business
of
are
a sympathetic
approach
other's problems. In the
as our
This
re¬
It comes
down to what is usually
called, in
the
political science
on
each
available
of
be
selves to take that road.
reached, they should ideally be
field
'
merchandise balance
a
be
represent manufactured or
semi-manufactured items, where¬
as
undeni¬
to
are
And if compromises
based
to
the
most
problems
these
.Tariff barriers
higher
a
than that
of
some
fuel
higher
'
these
If
stood.
important are automobile
parts, airplane parts, tractors and
parts,
iron and steel products,
outstripped its natural
the
able.
interna¬
solved, they must first be under¬
most
many U. S. industries in the
absence of Canadian imports would
practically have to shut
down, and that U. S. production has
Since
Of
The value of such
group in developing
tional understanding is
highly fab¬
more
countries.
a
production.
diversified range of prod¬
more
ucts, generally
problem, according,to Mr. Jones, is less seri¬
data indicates, and much of
capital equipment
paid for in dollars is expected to increase production
two
about
The United States sends Canada
a
Department official indicates that tariff peculiarities
endangering mutually beneficial Canadian-American economic
relationships and inevitable dynamic growth are apt to be
as
asbestos
and
production of shingles, and almost
80% of her wood veneers.
State
solved
her
of her total
nickel,
other items the United
States buys over 80% of Canada's
By JOHN WESLEY JONES*
looking businessmen from both
of
Among
Deputy Assistant Secretary for European Affairs
Department of State
,
of
60%
over
production
23
(Territory of the Islands of St. Pierre and Miquelon)
on
page
24
24
jrom
page
Isaac B. Grainger,
director
Exchange
Cooperation
Bank
rability
of
greatness
this
Professional
Committee
can
F
to belief
the
this
the
idea;
United
Nations
Harold
V.
Smith, Gen¬
of
Charter
of
to
Isaac B.
ness
of
good will the world
canvas
volunteer
Company
executives
The
The Business and Profes¬
of raising $425,000
The
Campaign,
which
opens
1, will ask for $3,000,000 for
the
United
Hospital
Fund's 80
voluntary member hospitals. Mon¬
Bache Adds to Staff
Oct.
(Special to The Financial Chronicle)
CHICAGO, 111.—Christopher G.
Janus has joined the staff of Bache
ey
is distributed according to the
amount
& Co., 140 South Dearborn Street.
He was previously with Crutten-
free
given
care
patients
den, Podesta & Co.
of
by
to
and
below
cost
medically
needy
hospitals
during
the
as
clude the Links Club, the Racquet
Tennis
and
Club,
Ancient
and
Royal
the
and
Golf
of
Club
St.
Andrews, Scotland.
Co., 238 Royal Palm Way.
Hooper is now with A. G. Edwards
Sons, 409 North Eighth Street,
of the New York and
&
members
seeking
to
market,
we
this
growing
investment
maintain the following specialized
"
(Special to The Financial Chronicle)
111.
CHICAGO,
nadian
new
branch
plants for foreign corporations.
DISTRIBUTING V
and
...
all
4.3
1.00..
45
2.2
1.10
20
Lines, Ltd.
15
vessels:
passenger
interests
j.
•
,
include
33
Dell
has
Harris,
with
become
First
co.—brewing
Co., 135 South
previously
Bank of
Boule¬
Listed
13
1.50
271/2
If 5
''
Ltd.__
30
1.75
30
—
Which
Companies
Have
Paid
Consecutive
Celanese Ltd
Joins B. J. Van Ingen
—
John
C.
Mathis, Jr. has become associated
with B. J. Van Ingen & Co., Inc.
Mr. Mathis was formerly with Estabrook & Co. and American Se¬
Co., Ltd.
sales
Exclusive
banks,
Morse
«fc
offices at
Webb Avenue, Bronx, New
20
1.20
4.8
151/2
a20
6.0
28
12.00 b500
2.4
sell¬
1.275
29
30
4.2.
31
0.50
19
2.6
28
3.20
b51i/>
6.2
Canadian Oil Cos., Ltd
Petroleum refining & distribution
32
0.70
381/2
18
Can. Pac. By. Co. "Ord."
"The" private railway system of
14
1.75
Chemicals and allied products
Canadian
Ingersoll-Rand Ltd.
.
5.2
-
Canada
Canadian Tire Corp., Ltd
Automotive accessories,
Canadian
Ltd.
-
variety
large
0.70
81
12
1.00
4812
-
C O
Co.,
-
and
14
parts, etc.
Westinghouse
2.1
of
apparatus
sale prices or the last sale .price
ask quotations are as of June C3, 1907.
Quotations represent June^28, 1957
prior to that date. Bid and
from
0.75
Electric
Canadian Industries Ltd
♦
se¬
22
in the
35
agents for Fair¬
Co. of Chicago
manufacturing
Airbrakes
a
Page
&
Canadian Gen. Elec. Co., Ltd.
electrical
is engaging in
on
Synthetic yarns and fabrics
Canadian
Fairbanks
Morse
Manufactures compressors, pneumatic tools, pulp and paper
Quinsigamond Avenue.
Mass.
Starting
Canadian Gen. Invest. Ltd.__
Management type invest, trust
Mass. —John
&
Table
ing
rights of General
products in Canada
the staff of
Co., 47 North
joined
business
**
A
Dividends From 5 to 10 Years Appear
Exclusive
has
2391
£.2
subidiaries make
bearings,
bushings
and
Canadian
SHREWSBURY,
curities
4.7
491/4
National
(Special to The Financial Chronicle)
Leeds
17
1.60
grain
and
Bronze Co.,
co.
Second
Sideckas
0.80
90
castings
Midwest Stock Exchanges.
B.
19
and ropes
Canadian Breweries Ltd
Chicago.
R.
'
•'
Lawrence J.
connected with
Upham &
the
if. 5
*
*■'
Co.
§ Add current Canadian Exchange
a
Asked,
b
Bid.
Kate,
Continued
York.
on
page-^5
.
reach current markets in
or
high grade Canadian stocks and bonds.
TRADING
.
Canadian
MEMBERS
department fully staffed with seasoned
personnel to provide prompt and accurate
.
80
general brokerage which enables
maintain
to
us
«
,
3.45
—
Sol Leeds Opens
help finance the expansion of Ca¬
companies and the establishment of
102
deposits
Operates 7G0 branches throughout
the world
La Salle Street. He was
Sol
to
5?.0
Canadian Bank of Commerce
bronze
'
UNDERWRITING
...
35%
hotels
Holding
curities Corporation.
financial services:
and
diverse
other
Canadian
(Special to The Financial Chronicle)
issuers, dealers, and others
reach
1.75
milling interests
Harris, Upham Adds
BOSTON,
To assist corporate
Freight
Holding
Midwest Stock Exchanges.
has
increasing number of investors.
23
first mortgage security,
on
Copper and steel wires
H.
Mo. —Edward
LOUIS,
Kaskan
an
4.0
Ltd. "B"
(Special to The Financial Chronicle)
vard, members of the New York
Canadian securities
Corp.
Canada Vinegars Ltd
Vinegar and apple products
Canada Wire and Cable
With A. G. Edwards
ST.
Jure 28,
1957
50
>
Helping Canada Grow
many
Paymts.-to
1957*
2.00
Canada Packers Ltd. "B'\—_
Full line of packinghouse prods.
Canada Steamship
With R. B. Sideckas
by
tion
June 28,
Industries
BEACH, Fla.—Jesse R.
Little is now with Jerry Thomas
Co., Inc., 141 West Jackson
understandably attracted the interest of
*
issues debentures, accepts
(Special to The Financial Chronicle)
and
recorded
June 28,
1957
30
Canada Malting Co., Ltd
Malt for the brewing & distilling
Lends
CHICAGO, 111.—Allan R. Rolfe
is now with Arthur M. Krensky &
outstanding dividend and earnings growth
12Mos.to
—Canadian $ §—
;
Ik
% Yield
Basedow
-
Canada Permanent Mortgage
(Special to The Financial Chronicle)
The
secutive
Divs. Paid
Joins Jerry Thomas
With Arthur Krensky
4k
Extras for
Years Cash
Community
He is a graduate of Prince¬
University and his clubs in¬
ton
Quota-
Including
of several
is a trustee
York
Approx.
Cash Divs.
No. Con-
Trust.
busi¬
of the
$3,000,000 goal of the United Hos¬
pital Fund's 1957 Campaign.
over.
weil
New
the
of
who
and
sional Committee has the respon¬
sibility
as
other companies, and
so¬
in Manhattan and
firms
Bronx.
and nations of
men
Grainger
Viewpoint
Coupled With a Dynamic Economy
director of the
Avenue is a
than 500
licitors
will
it, it is
this idea of the spirit that holds
together, not only Canadians and
ourselves, but
Grain¬
will direct
more
22
Canada: A Conservative
PALM
lVfr.
ger
Continued jrom page
Hartford Accident and Indemnity
Cam¬
the
paign.
de¬
to
Mr.
Park
eral Chairman
of the
attempts
think
we
was
derives
define its possibilities.
However
it
encom¬
racy" and "religion" help
scribe
Cam¬
Annual
"democ¬
words
78 th
d's
by
in freedom
The
u n
paign,
du¬
differences of opinion with¬
out disintegrating.
It is flexible
enough to give free rein to the
thoughts of all men who are dedi¬
individual.
United
Hospital
pass
cated
of
announced
and
concept
that it
the fact
Corn
chairmanship of the Business and
—
the
President and
the
nearly 800,000
ward
and
patients.
Grainger, who lives at 1001
with
clinic
has accepted the
together as we do.
In the last analysis it is a way of
life—a Christian
philosophy—if
you like — common to the whole
Western
world
which
permits
this relationship.
from
Thursday, September 26,1957
served by
Chemical
the
of
to work
of
number of patients
these hospitals last year
numbered
more
than
2,000,000
Grainger Heads
Hospital Fund Div.
Of Canadian and
American
Total
1956.
23
Economic Aspects
Part
...
.
Continued
able
Financial Chronicle
The Commercial and
(1340)
.
execution
of
orders
Your
•
and
in
Canadian
securities.
TORONTO
STOCK EXCHANGE
CANADIAN
STOCK EXCHANGE
inquiry is invited
will receive
our
CALGARY STOCK EXCHANGE
attention
prompt
VANCOUVER
Gairdncr &
60 Wall
Securities
MONTREAL STOCK EXCHANGE
Company Inc.
COMPLETE
FACILITIES
STOCK EXCHANGE
WINNIPEG
STOCK EXCHANGE
WINNIPEG
GRAIN
FOR
CANADIAN
STOCK
EXCHANGE
.
AND
BOND
TRADING
Street, New York 5, N.Y.
WHitehall 4-7380
Affiliate:
.
Gairdner
--
&
James Richardson st Sons
\
•
Company Limited
EXECUTIVE OFFICES
Underwriters and Distributors
of Canadian Securities
Members of Leading Canadian Stock
Exchanges
ESTABLISHED
Business Established 1021
Toronto
Montreal
Kingston
Quebec
Vancouver
Hamilton
Kitchener
London
Private wire system
Calgary
Edmonton
Winnine*
New York
IB57
OFFICES
FROM
-
WINNIPEG
MONTREALTO VICTORIA
•
I
tVplume 186-
Number 5676
.
,
The Commercial and Financial Chronicle
.
(1341)
Continued
from
24
page
Two Representatives
Canada: A Conservative
Viewpoint
Dynamic Economy
Coupled With a
Cash Divs.
:
Including
No. Con-
Extras for
secutive
12 Mos/to
Years Cash
June
.Yarns and fabrics
'
-
Investment
co.
General
"
19
Trust
Co.._______
-
/
V,
.
*
National Co.,
eltctrical
.
conduits,
Paymts. to
June 28,
b30
,
A
Ltd._
21
V,'-
Confederation Life Assoc;£__
Wide
of
range
endowment
policies
*
Consolidated Mining &
*
,10
bruce
zinc,
tilizers, etc.
silver,
Owns five mills; .daily
capacity 2,479 tons
25
/.
A.
oa.es
W.
H.
L.
in
the
and
Toronto
variety
northwestern
representative
for; Danforth
Field
Company,
Pacific
Coast
glass
110
0.80
39%
2.0
22
1.50
26
5.8
21
1.10
I6I/4"
6.8
12
6.7
gas
co.
al-
—
heavier
grades
Mr.
-
Cosmos Imperial Mills Ltd.__
23
0.80
business
Zilka, Smither
&
Bottle
Prior to
12
sells
0.60
32
1.9
Sullivan
continuous
forms
for
caps
the
beverage
29
2.00
52
Trust
in¬
York
Crow's
Co
58
Nest
Pass
Coal
producer
on
western
high
*
b240
asso¬
&
Co. in Portland.
registered Tepre&
Co.,
members of the New
a
Newburger
Stock
director of the Bureau of
special
j
Hua Hsing Investors
;
spending
Hua
-
Hsing
with
Investors
offices
at
has
total
to
levels, and
further this fall,
rise
retail
sales
Sien Wei Liu, Hsin
and Yook Fan Chin.
are
of
1957
were
6%.
Al¬
though business spending for
new
up
larger than in the like 1956
gage
pe¬
is
new
the
new
in
a
new
Mutual
Investment
lift
average
sector, some business. Partners are Arthur I.
ordering, especially Berliner, Alfred A. Talbert and
auto needs, is ex¬ Leon Abramson.
steel
rate
operations
of
at
least
to
Opens Office
85%
of
capacity in the final quarter.
Auto output should
equal the rela¬
tively good final quarter 1956
of
securities business.
Paragon
appropriations.
model
pected to
an
Philip E.
industrial
pickup in
for
and
Service has been formed with of¬
fices at 33 West 42nd
Street, New
York City to conduct a securities
Washing¬
on
Nast
•Paragon Mutual Formed
ex¬
pected to edge still higher
despite
the economy efforts at
In
H.
German have formed the Nast^
German Co. with offices at 17 East
48th Street, New York
City to en¬
Total Government
spending
(Federal, state, and local)
ton
Chih Lee,
Nast-German Co.
Maurice
plants and equipment is
leveling
out, fourth quarter outlays will
continue
to
be
substantial
and
riod.
engage
are
expected to
hold above year-ago levels
during
the coming peak
shopping season.
Dollar
sales
in
the
first
eight
months
Canal
Partners
sonal income at record
likely
been
218
Some
general
NEW
othy
at
xpodest expansion
trade
and
industrial
in
Rosen
150
a
ROCHELLE, N. Y.—Dor¬
has
opened
an
office
Overlook Circle to
engage
securities business.
Studies, also in Philadelphia, and
2.1
was an
slope
FBI agent.
Canadian Rockies
Mutual Fund
and
21
_
holding co—interests include
complete line of whiskies
Ontario
1.70
6.0
Mutual
gins
38
gold| producer
28%
a
Dome Mines Ltd
♦
5.00
nies.
by
*.
bases this expecta¬
/ continued
shakeout, and
growing competitive squeeze
profit margins of many compa¬
Lrnmcnt/—; which will provide a Street, New York
City, to
strong bolstering force.' With per¬ in a
securities business.
the
a
40
on
Exchange. He was
formerly Executive Director of
volume.
Philadelphia Board of Trade,
2.9
Co.,
Distillers Corp.-Seagrams
Ltd.
A
21
fiduciary business
Ltd.
of
0.60
of
Philadelphia,
3.8
dustry
General
formerly
joining Wellington, Mr.
was
sentative
Crown Cork & Seal Co., Ltd.,
Coal
was
duck
Manufactures
Crown
Bales
ciated with the
investment firms
J. A. Hogle & Co. in
Spokane and
of
Crain, R. L. Ltd
of
the Fund, with
offices in Port¬
land, Ore., and William
JL ,L.
Sullivan, Western representative,
with
headquarters at 6852 Dodge
Street, Omaha, Neb,
containers
operating
spirits
.
representative
distributes
Holding and
cotton
be
6.2
area
of
Manufactures
" 341/2
2.15
-
Corby (H.) Distillery Ltd."A"
cohol and
Vice-President
in charge of
national distribution.
They are Bruce A. Bales, who will
231/8 v 7.1
newsprint
Consumers Glass Co., Ltd
Wide
1.65
Sullivan
nation's largest mutual
funds, has
appointed two new District
Repre¬
sentatives, it has been announced
by A. J. Wilkins,
1.9
-
12
Consumers' Gas Co. of
Toronto
Manufactures
120
t■
chemical .fer-
Consol. Paper Corp., Ltd
-
2.25*
'-V-
Smelting Co. of Can. Ltd.
Lead,
The Service
tion
on
business
the United Business
Service.
-
t,
_.
0.75
12%
6.2
Analysis, Inc.
Analysis Inc. has
formed
Park
Avenue, New York City to
Quotations represent June 28,. 1957 sale prices or the last sale
price
as of June 28,
1957.
prior to that date. Bid and ask Quotations'are
§ Add current Canadian
Exchange .Rate.
Dividend paid in U. S.
Fund
been
conduct
_
.
a
with
offices
at
-80
Wood, Gundy & Co., Inc.
40 Wall
securities business.
Mutual Fund
Street, New York 5
105 West Adams
Wire connections to
Planning
-
Street, Chicago 3
Toronto, Montreal,
*
Mutual Fund Planning
Corpora¬
tion is engaging in a
securities
business from offices at 270 Madi¬
Currency.
% Inactive issue. No Exchange
trading.
b
-•
1
..."
.
-
Bid.
Continued
on
26
page
son
Winnipeg and Vancouver.
Stock orders executed
Avenue, New York City.
on
all
Exchanges in Canada.
affiliated with
Wood, Gundy & Company
Limited
TORONTO
MONTREAL
QUEBEC
SAINT JOHN
HALIFAX
LONDON, ONT.
WINNIPEG
VANCOUVER
OTTAWA
REGINA
LONDON, ENG.
HAMILTON
EDMONTON
KITCHENER
CALGARY
VICTORIA
and
Wood, Gundy & Company
Members of
„
The
services of this firm include
complete
brokerage facilities for Canadian
The Toronto Stock
.
Exchange
Montreal Stoek Exchange
Canadian Stock
dealers and brokers interested in securities traded in the
United States.
Exchange
"
We maintain
a
direct private wire to
Canadian
James Richardson
and offer
Investment Securities
Sons
&
A.
to
United States dealers and brokers interested in Canadian
E. Ames & Co.
secu¬
rities similar facilities in Canada via this wire.
Limited
UNDERWRITERS AND DISTRIBUTORS
'
<
u*
...
.
A. E. Ames & Co.
Members Toronto and Montreal Stock Exchanges
OFFICES
&
»■
V,
4>"
'
.
Members of'the Toronto Stock
1 4 WALL
STREET
IN
14
CITIES IN
CANADA AND
ENGLAND
.
Members of the New York- Stoek
'*•
*
'
A. E. Ames & Co.
Exchange
Exchange
Incorporated
■
New York
NEW
of
recent stock market
the
moderate, but slightly better-
;by_ consumers, industry, and Gov-. formed
0.80
34
and
»
-
1957,
is forecast this fall
and winter
;
/
r
psychological effects
continued tight money and
credit,
uncertain foreign situation —
especially in the Middle East, the
the
somewhat this last
quarter,
and winter, 1958.
•1.00>bl3y2'-
/
business will include the
actual and
change and predicts it will rise-
y
-
ment in
generals economic
than-seasonal, pickup in
C
Limiting factors on the expected
fall-winter
improve¬
Service weighs
*
1.00"'' 16
16
for
•
*
>
b55
ward.
moderate
Business
grounds
<
*
13
elbows,
United
on
couplings, etc.
life
the
t;
k 1.401
23
-
Operates a 2 million bushel grain
i-,- elevator in. Collingwood,- Ontario -
Rigid
0.85
«
.
Collingwood -Terminals, Ltd.
v
of
one
It believes that both
average
prices and the cbst of
living will continue to edge up¬
wholesale
In Months Ahead
distributors of the
Fund,
ordering is expected by the Serv¬
ice.
Upturn Forecast
spon¬
\
fiduciary business
Conduits
*0.875
Ltd.;"* 14
Chateau-Gai Wines Ltd._;___*
Wines and juices
tion
28,
large insurance»"
—
'Interests
Chartered
'
Based
Wellington Company,
and
1957,,
*
Central Canada Invest.
-
Quota-
Wellington Fund
Wellington
% Yield
.
The
*.
sors
Approx.
June 28,
1957 ♦
—Canadian $ §—
Divs. Paid
Celanese Corp. of America__
s
For
Moderate Business
•
23
YORK 5,
Boston
NEW YORK
BUSINESS
ESTABLISHED
1889
The
Continued from first page
and
It is not now
Great Issues in Canadian
—U.S.A. Community
25
Canada: A Conservative Viewpoint
anti-American. The
Secretary of State of the United
States, the Honorable John Foster
not
will
be,
Coupled With a Dynamic Economy
recently given
Congressional Commit¬
Dulles, in evidence
before
a
CashPlvs.
Canada's status as an
independent
of
the Commonwealth
constitutional monarchy will
member
and
a
Her Majesty,
Queen Elizabeth The Second,
be emphasized when
secutive
Oct.
14
as
on
relationship for
granted. The former
Secretary of
External Affairs (Mr.
Pearson) expressed the same sen¬
State
for
Canada is numbered among
all
with
business
of
desirous
While
world.
the United States,
and
Investment holding
the
steel of
countries. To
that end one of the first acts of
the
new
Canadian Government
between
our
two
our
We
have
another.
learned- to
trust one
Ltd.
Neither has received aid
I
country.
By doing so-.
emphasize that the Government
steel
Decries Our Trade Philosophy
'' ■'
'i
.
.
trade
of
concentration
This
16
1.20
22
5.5
31
0.50
blO
21
,0.90-
40
1.70
.
.
,
.
"
5.0
etc.
,
—
variety
wide
.
V
4 '
"i I
32
y2.
■
2.8
primary
of
products
Ltd
Dominion Glass Co.,
glassware
Wide variety of
2.8
b6H£
>
-
>
-
„
-
,
14
Dominion Insurance Corp.
Operates company for fire insur¬
.-■?
4.8
8.00 bl66
etc.
ance,
/>
Dominion Oilcloth and Linoleum
oil-
and
range
7.1
b28
2.00
71
Co., Ltd
of linoleum,
cloth products
Wide
,
.
-
.
,,
Dominion Steel & Coal Corp.,
Ltd.
A
,
12
1.00
26 Vk
3.8
16
1.25
52
2.4
12
0.50
11
4.5
46
0.60
12
10.75
12
6.3
14
0.55
a9
6.1
& steel
holding co.—coal, iron
interests
Dominion Stores Ltd
Operates grocery and meat
Tar
Dominion
can
my
3.2
and
draperies,
tapestries,
Makes
-
each other strengthens our
within
26 Vz
Dominion Foundries & Steel
The candor with than Canada sells to the United
communicate with States.
under¬
United States exports to Canada
when
it came into
power
this standing of each other, and helps
are almost
as much as the
total
summer was to agree to the joint
us
to avoid the pitfalls of mis¬ sales it makes to all Latin Ameri¬
operational control of the air de¬ understanding which have bedev¬ can
countries.
Canada
is
the
fense forces of Canada and the iled relations of so many other
United State's greatest customer
United States.
This system em¬ countries in the world.
and the United States is Canada's
braces not only our two air forces,
greatest customer. What you are
One or Two Economic Matters
but the several radar warning lines
buying from us is largely raw ma¬
which have been built by us joint¬
May I now with the utmost terials or semi- or partially-manu¬
ly across this continent, and main¬ frankness and goodwill, and in the
factured materials, for the United
ly through Canada. In so doing interests of fullest understanding,
States tariff system prohibits any
Canada does not in any way sacri¬
deal with one or two economic major -import
of manufactured
fice
her
sovereignty
over,
or
goods.
ownership of, these Artie regions. matters that are causing unrest
.
0.85
'
-
world.
we
machines
of
Fabrics, Ltd...
Dominion
that an era of A recent survey of the American
difficult or bad relations is be¬ Research Institute shows in graph¬
ginning. It emphasizes the need ic form that almost every Ameri¬
for care being taken in attending can
community of any size is
to our relations and viewing each
selling something to Canada. It
the
45
Engineering Wks.,
variety
Towels,
3.8
T7.00 b445
18
equipment
timent several years ago
in
June 28,
1957
company
Ltd.
Wide
.
said "the era of easy
which
19579
all kinds
Dominion
in the '.'Treaty
of Amity, Commerce and Naviga¬
tion," undertook "to promote a other's
problems with common shows that Brooklyn sells more to
disposition favorable to friendship
sense, frankness,
absolute confi- Canada than Argentina does —
and goodwill." While this under¬
dense and mutual trust.
Louisville sells more to Canada
taking has not at all times since
The
whole measure of warm than. New Zealand does—Chicago
been maintained, it is, and has
friendship which has long existed sells almost as much to Canada as
been, of the essence of our rela¬
between the
United States and does West Germany—Seattle sells
tionship.
Canada, and the parallel interest almost as much to Canada as does
We are partners in defense—
of the two countries, enables us Norway.
Even
in
agricultural
and we realize that the security to
speak to each other with a products, Canada buys a larger
of this continent cannot be assured measure of forthrightness which volume of American agricultural
without the closest co-operation is
permitted to very few countries products, by some $100,000,(X)(),
long ago as 1794
June 28,
1957
Dominion Bridge Co., Ltd.__
Bridges,
cranes
and
structural
doing
nations,
Paymts. to
June 28y
Divs. Paid
Corp., Ltd
ment
,
the
of
countries
trading
great
tron
12 Mos.to
*
Years Cash
Dominion and Anglo Invest-
That does not mean
Co-Operation
Trust and
Canada
our
% Yield
Based on
.—Canadian J §—
when he trading world has become increas¬
and automatic ingly confined to the United States
the Queen of Canada. goods relations between Canada which takes 60% of our exports
and the United States is over." and
provides 73% of our imports.
Parliament
Canada's
opens
take
Extras for
No. Con-
tee, said: "the purpose
...
cannot
Approx.
Quota-
Including
of the State
from the other without payment. Department
is to look out for
knows
no
written
constitution
the
interests
of
the
United
States."
No hereditary animosities or an¬
or
agreement it is bound
by
cestral fears divide us. In Canada The responsibility of the Canadian
the
aspirations
of
peoples in
Government in like measure is to
we know that if the United States
all parts of the globe who, while
since the last war had not assumed consider Canadian interests first,
independent, are united in their
world leadership, the free world this should not be misinterpreted
dedication to freedom under the
might not have survived. But we as being anti-American.
intangible unity of the Crown.
as
Thursday, September 26,1957
...
Canadian
sponsibility to consider
interests first.
Continued from page
its duty and re¬
of Canada has as
.
Commercial and Financial Chronicle
(1342)
26
chain
&
Chemical
tar
&
Co., Ltd.
Distiller
of its
of
coal
producer
derivativesy
Dominion Textile Co., Ltd.__
Wide range of cotton yarns and
8%
7.2
fabrics
Donohue Brothers Ltd
operates a
at Clermont, Quebec
Owns
Easy
and
mill
paper
Washing Machine
Co.,
Ltd.
Electric
washing
machines,
floor
polishers, air circulators, etc.
♦
_
t
sale prices or the Inst sale price
quotations are as of June 28, 11157.
Quotations represent June 28. 1957
prior to that date. Bid and ask
§ Add current Canadian Exchange
Adjusted for stock
a
Asked.
b
Bid.
Rate,
dividends, splits, distributions, etc.
,
-
.
in
channel contains inherent dan¬
one
Canada.
for
gers
Canadian economy
vulnerable
It makes the
altogether too
changes in
?
sudden
to
trading policy at Washington. Ca¬
nadians do not wish to have their
iiMiiliSi
lliiii P
economic, any more -than their
political, affairs determined out¬
Ililllf
side Canada.
purchased
always
has
Canada
McCUAIG BROS. & CO.
than
the United States has purchased
from Canada.
This imbalance is
from the United States
more
now
tions.
For
over
82 years
the members of
the Montreal Stock
million
$1,298
investing public.
two
|
On
the
with
United
MONTREAL
wish to buy or sell
>
Forming a Business in
product of the United
It is perhaps only natural,
national
same
claim
it does
as
Canadian securities, consult one
on
the
attention and
on
Canada.
How to form
latest information before
vigorous
and
more
aggressive wn
and which de¬
nies fair competition for markets.
Canada has a carry-over of wheat
the last two years,
whicn amounted to over 700 mil¬
WRITE
453
FOR
ST.
A
FREE
FRANCOIS
BOOKLET
AND
XAVIER
ST.,
MONTHLY
REVIEW
MONTREAL,
P.O.
1
lion
to
the border,
bushels this year.
Canada's
economy
Continued
regulations, taxation, custom
of business interest.
27
duties and other
business letterhead
Development
Head Office, Montreal.
write
on your
U. S. office or to the Business
to any
Department,
Bank
of
Montreal
&LtUUU'd
New Yorfc---G4
Chicago:
Wail Street
San Francisco---333 California Street
Special Representative's
It is vital
that some
on page
plan operations north of
this brochure also discusses Canadian
areas
rTfead
700 BRANCHES ACROSS CANADA
«.
a
Business in Canada is one of the fact-
For your copy,
pressing concern in Canada
is the question of the United States
agricultural disposal program, and
in particular that of wheat and
wheat flour, which has been more
A
acting.
a
Bank. Indispensable if you
vital
member firms for the
■
packed sections of the new brochure, "Your Guide
to Business in Canada** published by Canada's First
labor
Charges Unfair Competition
our
Vt 9-9311
PL. 8971
of the.gross
alent of less than 2%
consideration of the United States
of
1420 Peet St.
276 St. James W.
gross
therefore, that Canadian - Ameri¬
can
trade should -not make the
i
Exchange
Association of Canada
equivalent to 25% of
national product.
the other hand, it is the equiv¬
Canada's
States.
If you
The Investment Dealers'
is
States
invest
countries.
trade
Our
investigate before you
Montreal Stock Exchange
The Canadian Stock
present trend continues, 1957 will
establish > a, mew iall-time» record
in
imbalance in trade
between
these
1
more
purchased
from
Canada. Thus far in 1957, the im¬
balance has increased, and if the
States
United
Stock
Exchange have been giving
service to the
from the
value of
than the
year, Canada purchased
United States goods to a
Exchange
and the Canadian
running to record propor¬
In our commodity trade last
LTD
Members:
Office, 141 West Jackson Blvd.
0(f£cc: TKontteal
RESOURCES EXCEED
$2,700,000,000
Jfolume 186
Number 5616
.
The Commercial and Financial Chronicle
.
.
(1343)
Canada: A Conservative
Viewpoint
Dynamic Economy
Coupled With a
Cash Divs.
Approx.
Including
% Yield
No. Con-
Extras for
Quota-
secutive
12 Mos. to
tion
Years Cash
June
Divs. Paid
Based
28,
1957
31
1957 ♦
1.60
"Electrolux"
atr
14
_____
vacuum,
cleaners,
300
,*1.00
10
4.0
every
Equitable Life Insurance Co.
Canada
19
0.90
b44
Wide line of life-and endow ment
policies
25
1.20
35
Largest
23
operator of
1.50
17%
8.5
inotiotr- pic¬
^
ture theatres in Oanada
>
has
30
*1.50
19
,.
Operates large candji chain.
7.9
15
_
3.00
Co.
oV
Canada,
25
Automotive manufacturer
Foundation
Co.
of
Engineers
&
5.00
bl02
faces
but
not
the
4.9
United
cannot
economic
States,
with
its
18
0.85
2iy2
4.0
14
1.70
28
6.1
12
1.10
a
fair
for
the
disposal of wheat and agricultural
surpluses.
sales,
One other matter deserves
ment in
tion.
only
Capital
States
economic
com¬
the interests of clarifica¬
has
from
played
the
United
important
development of Ca¬
an
aggression of the U. S. S. R. Mili¬
tary alliances and joint co-ordina¬
nadian resources. We welcome this
for
defense
in
the
not
are
enough.
policies
on.
smaller nations.
not
afford
to
Freedom
allow
.of
any
i';". i-y'
»
j /
V * /.
*"
.
"
'
-
Asks for Similar
*J
,
*
resulted in
can¬
the
eco¬
/
;
,
\
^
oil
60% of
our
main
procluctipai,:being -owned, and
controlled
Co-Operation
some
manufacturing- industries, and a
larger proportion*of pur mine and
by
United
States
in¬
*
mar¬
against
power
solution
reasonable
investment and intend, td
provide
There must be economic
co-opera-, the best foreign investment cli¬
tion, which in turn demands rec¬
mate in the world,
The-heavy in¬
ognition-by- larger nations of the
flux of American- investment has
effect of their economic
has
compete for
markets
provide for
and
We
are
terests. ..In
co-operating in defense
measures—why
not
to
greater
a
degree in economic matters? The
be
of the
joint United States-Canadian Cab¬
nadians
export
inet
on
Trade
investment what
Canadians ask is that full account
the
Committee
that
taken- of
in
the
interest
the. policies
Continued
and
on
Canada
of
Ca¬
that
are
page
28
general-^contractors
Companies, Ltd
Wide
^Canada
-<»««
Ltd.
Fraser
fair share of the world's
dominant
Ltd. "B"
States
it
agricultural
fire, rain insurax.ce, etc.
Motor
United
the
increasing in recent
made
ket.
—
Sells
by
world
ment which will
role
tion
difficult/jf not,im¬
possible, for Canada to maintain
its
Federal Fire Insurance Co. of
Canada
follow
practices.
free
military,
creasing.
The
surplus
disposal
legislation of the "United Stales nomically.
'
-
Inc.
nations
the
and
free nations to be weakened
Fanny Farmer*Candy Shops,
Ford
competitive
The
her
world,
mainly at the expense of Canada's
export trade, which has been de¬
-
——
for
years by
its policies of surplus
disposal, and
that
increase
has
come
about
3.4
copper,subsidiary
produces steel -eastings. ■
Corp., Ltd.
other
recognized
been
—l
Famous Players. Canadian
providing
wheat
Falconbridge NiekeL Mines,
Ltd.
compete
The share of the world
market for
2.0
Nickel,
can
share of the market of the
<fc
purifiers-
of
Community
subsidies, barter deals
for foreign
currency.
year.
Canada
10.0
'
bushels of wheat be exported
be resolved by mutual
agree¬
can
on
U.S.A.
Questions will meet in
Washington in early October, and
hope that this matter
Canadians
Great Issues in Canadian
1957
b40y2
General investment trust business
Electrolux Corp
Economic
Paymts. to
June 28, June 28,
—Canadian $ §—
Economic Invest't Trust Ltd.
Continued from page 26
27
variety
paper" and lumber
synthetic
yarns
and
products;
fabrics
A.
J.
Freiman, Ltd
Owns
&
inent
operates
store
Gatineau
in
largest
t
.....
In
depart-"
Ottawa
Power
Hydro-electric
is
Co,__
energy
20
-
1.35
30
Canada
tend
General Steel Wares Ltd
Household
rant,
utensils; hotel,
and
etc.
0.40
63/4
5.9
-
pit and
and
foreground
upper
for 10,000 lineal
The
out
Errington
of
upper
the
feet.
ore-zone,
photograph,
right,
extends
for
>
■
an
additional
& Rubber Co.
Canada, Ltd._
Natural
"
restau¬
hospital, equipment;
refrigerators,
Goodyear Tire
of
17
lower
section of the Hogarth
back¬
ground, the "G" ore-body.
These two ore-zones ex¬
Eastern
in
the
a
open
4.5
31
u_
synthetic
6.00
195
5,000
feet.
3.1
-rubber
products
Gordon
Mackay Stores
Listed
,
^
•
Ltd.
Companies Which
Have
Paid Consecutive
Dividends From 5 to 10 Years Appear in the
.* *>
Second Table Starting- on Page 35
:
.
33r "
Manages
subsidiaries wMcJi distribute textile products
and/allied'
goods
/*>
<-•
t.
v..
_
*"
' .1
Manufactures
eral
and
*0.50
•
"
"
-
Ac
distributes
office supplies
business
.v
„
—
/Sillli?
a.
^
'IF ¥ 1
'%;w &
v
4.1-'
•*,
,
,/.'
,
'*
-
../.furniture-throughout.Onurio
"
Great Lakes Paper
Co., Ltd._
Manufactures
.
.
6s
K*
X,;.
J-
5.9
*-'-T
♦
b36%/
v-.",'
genforms-
&
.
I
a8.50
-
>*" " '"
r 1.50
14
commercial
stationery
..
.
_
•"
.
—
-"'I-
Co- '•
Grand & Toy
•
.*•
^
v.....:....'
.
.
ing & Power Co. Ltd.—11
Copper producer in British'lttmbia, Canada,'* "*
-'8.3
b6
;
u,
1 '
Granby Cons, Mining, Smelt-.
r
o.5o
.
'
-
•>:;
rr
.
newsprint %nd
11
1.60
" 45%
3.5
0.50
b53/4
8.7
un-
bleached sulphite-paper
„
Great West Coal
Co., Ltd."B"
Wholesale
distributor -cf.'lignite
coal
.
11
^
-
"
.
Great-West Life Assur. Co.__
Wide range of
health policies
life,
accident
'
,
variety
of
wire
58
3.50
283
1.2
and
-Photographs by Charles WilH.
■
20
0.30
5
6.0
29
0.70
b21
3.3
11
1.20
27
products
Guaranty Trust Co.
General
.
..
Greening (B.) Wire Co., Ltd.
Wide
,
.
of Can._
fiduciary business
The present
Gypsum, Lime & Alabastine,
Canada, Ltd.
__—.
Building materials; gypsum and
lime products; industrial chemi-
•
-
4.4
the
Maufactures
metal
ll
large variety
products
Hallnor
l.oo
Ltd._V__.___
of
textile
ster" and
in
Hogarth
loading
8.5 to 10 million tons of
plant.
19
0.16
16
0.90
seamless
"
2.00/8.0
bl3
has
of
a
present daily capacity
17,000 to 20,000 tons.
direct-shipping high-grade iron
6.9
22
"Axmin-
0.60
ore
6%
V
9.1
sustainable for
more
*
.
"Wilton" rugs
Hayes Steel Products Ltd.___
Wide
The
products
Harding Carpets Ltd
Specializes
"i
»
The conveyor belt, foreground,
Mines,
variety
7.1
.
Ontario gold producer
Wide
bl4
of
established annual production* of
,
Hamilton Cotton Co., Ltd
Steep Rock Range is
♦
cals, etc.
Hahn Brass Ltd
objective from
than 100 years.
15
1.50
11
f0.325
27
5.6
variety of automotive parts
Hendershot
Paper
Products
Ltd.
Manufactures paper products in¬
cluding containers & corrugated
products
Hinde and
Dauch
variety
of
*
4.8
Including the output of directly operated
mines and that
from
areas
under lease.
Paper Co.
of Canda Ltd
Wide
6 3/4
24
1.80
b45
4.0
paperboards,
boxes, etc.
♦
Quotations represent June 28, 1957 sale
prices or the last sale price
prior to that date. Bid and ask quotations are as of June
28, 1957.
§ Add current Canadian
Exchange Rate.
*
Dividend paid in U. 6.
Currency.
t Adjusted for stock
dividends, splits, distributions, etc.
a
Asked.
b
Bid.
."
PRODUCERS OF HIGH GRADE OPEN
HEARTH AND BLAST FURNACE ORES
.*
STEEP ROCK
t Inactive issue. No Exchange trading.
y
STEEP ROCK IRON MINES LIMITED
Continued
on
page
28
(IN
THE LAKE SUPERIOR
AREA)
CANADA
The Commercial and Financial Chronicle
23
Continued from page
27
able
equity
That
there
ing
and
"Can
capital.
-
•
Canada not more than one in four
The question is being asked:
other
are
reference
denies
Cash Divs.
engaged in are, therefore, in a position to
developed in make important decisions affect¬
Canada's interests, and their poli¬ ing the operation and development
cies take account in their direc¬ of the country's economy?" Ca-',
tion of the interests of Canadians. nadians ask that American com¬
There is an intangible sense of panies investing in Canada should
not regard Canada as an extension
disquiet in Canada over the po¬
litical implications of large-scale of the American market; that they
be
incorporated as Ca¬
and continuing external ownership should
industries
are
,
of
Canadian
indus¬ nadian
companies
making
avail-
{eristic
in
of
our
Canada
and
spoken in
Quota-
secutive
12 Mos.to
tion
June
Hollinger
much in
have
we
1957
,
}
are:**
tary alliance there
co-operation
In
mili-,.
our
between
differences,
no
Our
closer
world.
Let it not be said that
cannot achieve
OPPORTUNITIES IN CANADA
co-operation
industrial
investors
in
be of valuable assistance to those interested
-; of
development of Canada and of benefit to
selecting suitable investments through which to
participate in Canada's assured growth.
'
Members of The Investment Dealers' Association
*
of Canada
355 St. James Street W., Montreal
Branches in the
*
principal Cities of Canada
-
shadow
:
<
25 Broad
Street, New York 4, N. Y.
*
140 Federal
Street, Boston-10, Mass,
the
toward
York,
Boston,
Montreal,
Toronto,
toward
horizon
of
Ottawa,
Hamilton,
Half
a
million
are
to
heritage
every
paid out
working day
policyholders,
and annuitants
that
times
In
SUN LIFE
and
will
last
face
along is
concord
nations,
a
in
with
the
to
whether
our
limited
"
2.98
971/2
3.1
1.40
" 491/2
S."
Co.
oil
2.8 ;
producer and
gas
and
Corp.,
2.00 ;
14
development of
electrical com-
61
■
.
3.3
*' / /
■' ■;.
,
panies In Alberta *
type
14
2.50
42
6.0
41
1.00
a!6
6.3
investment
of
Publishing
Ottawa, Ltd.
Co.
Publishers
Journal"
"The
Ottawa
Quotations represent June 28, 1957 sale prices or the last sale price
our
-
a
Dividend
1957.
»
paid in U. S. Currency,
Asked.
that
undi¬
of
A
each
world test of
international
Underwriters
,
Dealers
Distributors
—
CANADIAN
Government, Municipal, Public Utility
and Industrial Securities
other free
of
Anglo-
friendship
we
is
succeed
to
Established 1903
Business
r*
*
.
~
*
1
or
will
the
Exchange,
on
Renwick
withdraw
same
Boettcher
mitted to
—
II
West, Montreal 1
Calgary,
Edmonton,
Hamilton, Winnipeg
Vancouver, Victoria, Charlottetown
St. John's,
Nfld.
from
On
will
ROYAL SECURITIES COMPANY
Oct.
be
3
Members:
ad¬
partnership in Boettcher
and
Company, 828 Seventeenth
Street, members of the New York
Exchange.
244 St. James Street
Toronto, Halifax, Saint John, Quebec, Ottawa,
date.
Boettcher Partner
Colo.
ROYAL SECURITIES
CORPORATION LIMITED
Admit
partnership.
on
DENVER,
Stock
12
and Brit¬
the
Stock
Dimond
the firm
natural
*
Co., 26 Broadway,
City, members of the
York
Charles
3.8
prior to that-date. Bid and ask quotations are as of June 28,
§ Add current Canadian Exchange Rate.
,
&
York
Personal policyholder service
991/2
great quest to maintain
Carrere
B.
3.75
*
trust
freedom for this and future
gene¬
rations.
to
,5.7
.
Management
Oct. 3 will admit Helen C. Crocker
throughout the United States and Canada
American
the peace and
well-being
Carrere
in hundreds of key centres
U.
of the world and will
provide the
New
Y
Petroleum
^peoples.
how Ca¬
solidarity
Canadian-American
New
through branches and representatives
the
relations.
key
24
301/2.
;
our
analysis,
"neighborhood"
COMPANY
OF CANADA
and
Journal
respect, toler¬
and Americans
ishers get
to
1.75
.
6.3
days ahead many grave
the
nadians
10
-
To pre¬
and
problems
0.70;; 11%;
Investment Foundation Ltd.,
consideration.
the
fail in
ASSURANCE
the
decisions
vital
I
to
v
;
our
values
steadfast
other with infinite
In
of the
in
-
co.—Pri¬
unity that saved us in
war, our governments, our peo¬
ples, must give due regard at all
In
beneficiaries,
.
-
it—
preserve
-
of
Co.
minished
ance
to
united
spiritual
operating
Management and
'
♦
dearer than life itself.
are
serve
dollars
of
and'
International Utilities
.
countries, with Great
Britain, have a joint heritage of
determination
: '
'
-
•
Nickel
refiner,
Preserving Unity
We
2.3
;
.
-
46
40
South
two
freedom.
•;
business
Ltd.
Kitchener, London (Ont.), Winnipeg, Calgary and Vancouver
Our
'
56V2
'
I
mary i. operations t at mines- and
smelters , near Sudbury,
Ontario
freedom."
of
insurance
International
world
a
130
.
acceptances;* also small
for share
Canada
the
where each man, each family, each
nation lives at peace in a climate
Direct wire connections between
New
march
we
58
.1
International Paper Co.
and
as
*
cigars', and1 cigarettes
&. geh'l
share
use
reason
3.7
Holding and operating co. — Op¬
erates
pulp and paper mills In
the
United
States,
carefully and wisely the
God-given
graces
of faith and
shall
V
full
comprises
oil enterprises
International
,
■
cloud, the horizon is bright
with promise. No shadow can halt
our advance together.
For we, of
Canada
Teletype NY 1-4358
Telephone HAnover 2-8875
Oil .Ltd
Canada,-Ltd.
atomic
Nesbitt, Thomson and Company, Inc.
Tobacco,
Holding
may
of
54
* :
-
changed to Wood (John)
Industries Ltd. Shares exchanged
arise to divide them.
the
2.00
t-
Name
-
their material wealth,
to join in the defense of
their spiritual community, ready
"Beyond
56
4.9
International Metal Industries
them¬
that
28
en-
.policies
ada, Ltd. "Ord."_ll\.__
loans
of
arbitrate differences
term
subsidiaries
Purchases
<■
re¬
quick
to
1.375
54%X 3.1
Co.
Ltd.
■,
selves, progressive in the develop¬
ment
17
V*
Industrial- Acceptance;: Corp.;
k
lations that today enrich our peo¬
ple justify" the faith of our fathers
that men,-given self-government,
'
1.70
Imperial Tobacco Co: of Can-
;
Y
dwell at peace among
0.45; V/10%;'V 4.1
82
\
•
can
*
With
integrated
,
Limited
Head Office:
'.'Y
friendship and part¬
nership is signified in the relations
These
10
'
•
-dowment and
r
Commons
countries.
*.
Canada
Imperial
-
"More than
our
r--—e
,
Nov. 14, 1953:
on
between
Nesbitt, Thomson and Company
,
of
;
.i
,
enamels,
Comprehensive ranged of life,
.
epitomized by the words
used by President Eisenhower in
Canadian House
—- —
lacquers,
Imperial Life Assurance
'
is
the
-
—
Varnishes,
.
r- 3 '
-
-
J
Flo:- Glaze Paints
paints,' etc.
The message I am trying to concan
Ltd.
;
we
Quotes Eisenhower
vcy
Our facilities
Canada
Imperial
.■>
/
'
,
•'
Operates 234 branches throughout
affairs. '
economic
1.5
1.45:^33^4 ^ 4.4 /
inVestin't trust
type
Imperial Bank fo Canada—!
;
similar spirit of
a
in
*
Management
f
the
in
no
33y4
6.00.*;/65^ C 9-2
first
on
'
0.50
*
comradeship;-
alliance
knows
42
mortgage
security and operates deposit and
debenture accounts
money
1957
§—
\
■
•VY" Corp.
the closest. ;
us.: In the "
is
1957 ♦
Hydro-Electric Securities
v
united in the great cause of free-.- "
dom and democracy.
Lends
..
.
on
*
Smelting Co-Ltd.J_
:i_L/ 23
Manitoba copper & zinc products;.;.
Huron & Erie Mortgage Corp.'/ 93
a
to;}
bound
are
differences.We
some
28,
Gold
Ltd;___~_____
gold producer
Hudson Bay Mining &
.
that it is hard;,
common
realize, that
to
Ontario
We1
-
Consolidated
Mines,
.
Based
Paymts. to
June 28, June 28,
—f'anadian $
fundamental things of life we have
the
Extras for
Divs. Paid
States-"*,
United
% Yield
No. Con¬
Years Cash
such close neighbors and have;
are
so
relationship.
the
Approx.
Including
them.
to
What I have said is not
a
but
problems
a
companies
as
these
in
Viewpoint
Dynamic Economy
■
long
control
Coupled With
to Canadians.
offers stock
There
v
'
-
and
27
page
Canada: A Conservative
country have a meaningful a spirit of truculence or of peti¬
independent existence in a situa¬ tion. My purpose is to have causes
Disquiet Over U. S. Investments tion where non-residents own an for
disagreement removed (which:
There would
be
no
potential important part of that country's unsolved my diminish the spirit,
harm in external ownership as basic resources and industry, and of understanding which is charac-:
of that
»
from
Thursday, September 26,1957
for question-,
clear when I tell you
seems
time
followed and in the direction
Continued
Canadians.
to
cause
ican-controlled firms operating in
—U.S. A. Community
tries.
stock
is
that it is estimated that of Amer¬
Great Issues in Canadian
use
...
(1344)
Montreal Stock Exchange
Canadian Stock Exchange
The Toronto Stock
Exchange
Volume
186
Number
5676
.
The Commercial and Financial Chronicle
.
.
29
(1345)
Canada: A Conservative
Coupled With
Viewpoint
Dynamic Economy
a
T-.*7
Cash Divs.
Approx.
Including
No. Con-
Extras for
secutive
12 Mos.to
:Years Cash
June
Divs. Paid
% Yield
Quotation
28,
1957
Based
on
June 28,
Paymts. to
June 28,
1957 ♦
1957
—Canadian $ §—
Kelvinator of Canada^.Ltd.14
Complete
'
ances,
line
of '
parts and
home,
applf-
0.60
of
producer
Labatt
Laura
"
Wt
0.80
14%
5.4
1.20
18%'
6.4
2.55
7.8
chain
0.20
.r
.
'
»
/
1.25
'v,
.v
-191/2
-
prodyteerj; "11;. 1"
Bros.,'Ltd.12
Eastern Canada
4.8
1,25
.
0.60
8%
Operates
chain
grocery stores
35
"self-service^'
'
Ontario
• }
.lilrV.
Loblaw; Inc.
Operates
be
6.9:
"
.
northern
i
and
torn
New.
Ohio
'
-mi***"
~%z~
<
22%
1.8
*
"
What
buildings;
*1.50
•
85
1.8
y
t.
or
(2) the streets
will be
widened;
will be open
*
^
Roger W. B&bson
r
Ping centers
or
(3) all stores
evenings. New shopotherwise inevit-
are
,
ListedCompanies AYhich ^lave
'
.
Paid
Smaller Homes Will Be
Built
Consecutive
Second Table Starting
w
i Another
■tt.nuui.er
,
Dividends From 5 to, 10 Years Appear in the
Page
35
onlv
...
bein^
Chocolate and other
<
.
22
20
-V
5.0
confection
products
._
v
A
-
29
0.27
4.10
Columbia companies'
Maclaren Power & Paper Co.
( Holding company—newsprint, - •Umbering and power interest
16
MacMillan & Bloedel Ltd."B"
17
3.25
b80
4.1'
"parlor"
is
definitely
doomed.
funerals, and recep-
fcions
be
31
3.2
'•
18
0.15
same
name
12
V, f «'•
I
i.-'i
IffamSfeJ
SS
larger
two
their
home.
larger and
As
more
autos
expen-
outside
the
home in places which have proper
parking space. There
parKing
Tftere will be one
large "living room" in which the
family will live, cook, and
There will be
"kitchen." With
infra-red cook¬
ing, only
needed
a
to
few
minutes
prepare
cooking
a
there
will
meal.
will
be
From
bathrooms—one for the par¬
ents, who will sleep on the first
floor; one for. the children, who
the
on
second
floor.
T^i^ hatZ^VTh
only
seen
in museums.
Sf
s,
smaller>
comparin£ocean
more with the staterooms
liners
on
•
„
.
on
or
deluxe
Heatine and air-condition-
clothing.
'rt
g
m0rewill
^mmon.
Both
hot and cold
come
into
air
the
through
underground
and
1.70
b20y4
8.4
0.50
71/2
6.7
based
Yes' rewlutionary changes to
£auseti
the automobile have
,
m^nif V Ear
tbanges^are ahead. As
theatres"
are
theatres,
biles
12
of
Grain
The
nbW
are
deposits
taking
many of
from
cus¬
direct
who drive
to
a
up" in automo¬
special window. Stord
show-windows, which have
been
of advertising for
merchants," will* become of
fruitful
a
their
source
less value
as more
people
one*
water
now
houses
pipes
come.
as
Elec-
thpm
Thic-
samA
mhv
nnnlv
tion is £acing eHher War
armament
Clothes
can
be
much
due
'
—
%
duplex
or
or
gave
♦
Quotations represent June 28, 1957 sale prices or the last sale
price
prior to that date. Bid and ask quotations are as of June
28, 1957.
§ Add current Canadian
Exchange Rate.
*
Dividend paid in U. S. Currency,
Bid.
up
to
Hi a
cheaper.
no longer Ve*woven as
today. Cloth will be made
style
of
homes.
Maxwell
CANADIAN
on
page
30
17 East
55th Street,
New
City.
STOCK
Q uinlan
STOCK
EXCHANGE
EXCHANGE
Putting
more
money into the automobile
result in putting less money
into the home. This will
especially
Collier Norris
&
Limited
Quinlan
MEMBERS
The
Investment
Dealers'
Association
of Canada
Montreal
»
«;
rr
•
Toronto
DAWSON, HANNAFORD LIMITED
Greenshields & Co Inc
Underwriters and Distributors
Greenshields & Co
Members Montreal Stock
Exchange
The Toronto Stock Exchange
of
Canadian Security Issues
Canadian Stock Exchange
Underwriters and Distributors
>
of Canadian Securities
Montreal
Toronto
DAWSON HANNAFORD & CO. LTD.
507 Place
f
•
.
d'Armes, Montreal
Members Montreal, Toronto and Canadian Stock
Exchanges
j
DAWSON, HANNAFORD INC.
New York
Ottawa
Quebec
Sherbrooke
Toronto
a
securities business from offices at
MEMBERS
MONTREAL
of
May Opens
may
Continued
Dis.
Russian Fallout.
ier Norris 6
apartments. People
their "horse and buggy"
or
thrpat
Maxwell May is engaging in
Cloth will
when they bought an
automobile.
They will learn to give up their
present
to
■
new
stories,
in
apartment htwises are com-ing.
Renting
ahtbniobilei will
largely take the plaice of buying
What About Clothes?
co-operative
handling; flour milling;
operation of bakeries, etc.
pass
ative
on
else people will live in
indoor
"drive-in schools" and
churches'* will follow.
so
"drive-in
tomers
greater
drive-in
following
of
architecture
will
be
the Old Cape Cod house
and
one-half
will
different
makes
of
at different
price ranges;
Auto dealers and gas stations
may
carry clothing.
V
tricity will be very much cheaper,
"Bottled gas" will be used more.
cloth is
kept off the streets.
will
There
I"en% inis same may aPPAY
sealing ana air-conaition- furniture, and1 evert1* clothes. This
1 bG m£Cllh?peS ^ will especially bd tnfe if our na-*
trains
gas
standard
clothes
their
Every house will, however, have
sleep
with
automobile
few
a
no
two
will
be
Banks
be
odor.
or
The
eat.''JJJ®L
no
frozen foods and
_
satisfied
standardize
All
be
9.7
u
Maple Leaf Milling Co., Ltd._
b
in
style
Ovyns and operates Toronto sports
arena, of
1.55
gold producer
Maple Leaf Gardens, Ltd.»__
7
or
held
be
clothes.
Weddings,
will
on
then
Retained
orthodox
will
will in-
women
wearing different dresses
and hats."
These,'of course, can
differ in colors, but women will
war
no
readers
women
"Impossible,
sist
have
finished suits for the
as
Some
new
homes will not have
garages; but all will have enough
land so that the
family cars can
Ltd.
Ontario
one
apartments.
1.00
Madsen Red Lake Gold Mines
'
reached*
limit
will turn their
present houses into
Fully integrated lumber business;
large exporter
-
Thic
slve, homes must become smaller
and
less expensive.
I therefore
forecast that many of my readers
holding company for four
British
moncv
must
be satisfied with smaller
and fewer
pecome
6.6
"
simnle
simple
automobiles, these families
rooms
Lucky Lager Breweries
(1954); Ltd.?
.
1.00
nave
havS
10
to
aie
are
Lowney Co^Ltd..
much
so
of
example 01
People can borrow
mathematics:
on
is fast
Walter M.
examole
Will Be
future home will
day will he
_^
facing either
or
men.
...
"dining room"; and the
modern
o
Rooms
The
mess
t
we are
un¬
will
of a machine as finished
dresses for the women and chil¬
dren,
disarmament,
such
o n e-s
.
York,
.
.
down
or
.
new
come out
say,
,
be true if
replaced
«
->49.
Pennsylvania
;
■'
0.40
133*'iseli-service?!r'food *;'ill
markets-in
-
brick
by
of
in
(1)
50-year-
old
.f
'
Loblaw Cos. Ltd.
..
will
-
buildings will
' f
J
v
the
cities,
t n r e e
three
The
and
•"*
•
in
of
ot
1
'
-0.06
nar¬
business
things
hap pen:
6.4
Wholesale-hardware, trade in
,
the
older
,.v
,
Ontario -gold,
-
with
row
one
31
in Ontario:
Quebec
that
ove
'•
Leitch Gold Mines Ltd.f
__l_4y20
Lewis
pr
Secord. Candy--,Shops,.
Retail :candy
Simple
streets
19
v
.'\Ltd.^Z_L_^_^_rvi^^_^_'':
.
homes.
.■
Lamaque Gold Mines Ltd.__.
Quebec gold producer
and
ni'/'tv
'
revo¬
arithmetic will
Ltd.__L^_____'__- 13
Qeneral brewing business
only
.
Ltd.
John
buildings
.•
=
—
v
highways,
retailing,
financing; but also the style
and
8.0
" •*
repairs
Kerr-Addison Gold Mines
Ontario gold
The automobile is not
cellophane. This
"synthetic cloth"
paper
woven
By ROGER W. BABSON
lutionizing
71/2
like
Revolutionary Changes Ahead
In the American
Living Style
37 Wall Street
NEW YORK 5, N.
Y.
York
The Commercial and Financial Chronicle
Growth to Date
Oil and Gas Future
Canada's Prosperous
"Permit
Until the
Canada's exploration
directed almost ex¬
clusively toward the discovery of
oil, and an incidental gas discov¬
ery was regarded as slightly bet¬
ter than a dry hole because there
evidence to
industry in Canada
justify their conclusions that the oil and gas
can
look forward with complete confidence to
past
prosperous
a
Speakers
compare
Canada: A Conservative
Coupled With
which
and
That
to
investments.
make these
density far less than one to each
un¬
60,000
impressive
most
a
Owns two Toronto motion
Canada
United
States
munity
and
our
competent oil industry.
'
.
.
very
V
presently
.en¬
some
difficulties due to.
and
import problems.
marketing
corn-
country's
is
Canada,
The
,
we
main
oil
hurdle
that of adequate markets.
/
which
facing in Canada today is
are
lor'the
day
2
the
by
investment
this
and
industry countering
appraised
as
refineries
S.
crude
will
"There
■
tors
,'
General
Ca¬
Members
"'v. —
*,
;
•
V. '••••
Canadian Stock
Exchange
The Toronto Stock
i>
J
•
;
.
in
Middle
the
-
to
refining and
' ~
11
0.90
14
1.55
'iw
•
5.3
b24
3:s
•
79^: ^;i.9
.
Ctv
"
J
41
in
2.9 \
i r
12
1.00..; 19 Va
■
,
.
specialty
*
-r
>
-t;
.
Minnesota and Ontario Paper
Co.
Newsprint,
aX-
5.2
.
grain and operates line
elevators in Western Canada.
y
•
-
-
Corp., Ltd.
Deals
i
io i
3.00,
producer
Midland & Pacific Grain
li
1.50
23
1.25
29y^
•
'
51-
and
papers
other timber products
Mitchell (J. S.) & Co., Ltd—
General
supply
house
for
3.5
a36
many
industries in Eastern Quebec
Mitchell
(Robert)
Ltd,-
Co.,
"A"
10
Brass,
bronze,
metal
products
nickel
tube
semi-liquid
Molson's
for
tooth
and
other
containers
shaving
paste,
cream
l/9 ****$£■'
0.50
:
other
and
Modern Containers Ltd
10
0.50
liy2
4.3
13
1.30.
25
5.2
products
Brewery, Ltd. "B"_
Montreal brewer
A
■
Monarch Mortgage &
fac¬
10„... 3.00/b38
Investments Ltd
;
Operates
and
apartment
7-9
of
number
owns
houses
Montreal Locomotive Works,
experi¬
East
"
Diesel-electric
related
-
in
warehouse
-
Mount
developing Canadian produc¬
capacity and marketing fa-,
cilities.- '/.\
'
!
v
♦'
area
which
Co.
'
day is served
entirely by foreign crude oil im¬
ports. A price reduction of 15c per
-
1
dis-
-
r
rice 1 T.
•
-
•
f'f
"
:r.l5
';':bl5V2
^'
V
:
ti
//.;
*
*1
;
'*;
C
■
'*
J-
7.4
-ty
f
'
r"
2.8
f
*':;■/ ; -f
rAl
Chemical
64;^
H .80: J
-
12
Mills
distributes
//••f'.f 1;
\ ,■ '•
;
of
chemical
drugs,
.
"general merchandise
&
""
16-
Ontario grocery wholesaler
•
0,60
20
3.0
—
;
'
♦
Quotations represent June 28, 1957 sale prices or the last salet
price
prior to that date. Bid and ask-quotations-are-as-of-JuneJ28;-1957c
§ Add current Canadian Exchange*Rate/;//':
-
....
-
0
Dividend
a
Asked.
b
Bid.
paid in U. S. Currency. r'!/-•/^
/.
•'*
,//'
•*
'-/
-
ti
"*.V" r.'J"; '
'•/•
'•
-
/
>•
•
barrel by domestic Canadian pro*
ducers would capture the Mon¬
treal market for
233
Notre Dame Street
West, Montreal
market
bound
Victor
5-6101
we
outlets
to
are
happen,
faced with
duty of IOV2C
a
Unless
us.
open
up,
other
this
is
particularly as
a U.
S. import
barrel
when
Savard
Hart
&
inc.
Members: The Investment Dealers''
ex¬
porting Canadian crude to this
country. Canada charges no duty
on its imports of crude oil."
Form
Association
of Canada
230 Notre Dame St. West
Montreal
Sampson Associates
Samson Associates, Inc. has been
with offices at 90 Laurel
SHERBROOKE
—-
TROIS-RIVIERES
—
SOREL
formed
CANADIAN
STOCKS
Orders executed
regular commission rates
funds.
.
.
-
455
Toronto Stock Exchange
American Stock Exchange
Montreal
Canadian
Broadway
Craig St., W.
Montreal, Que.
New York
Telephone:
WHitehall
Teletype
'
DIRECT
PRIVATE
WITH
WIRES
TORONTO
Stock Exchange
6, N. Y.
Royal Bank Bldg
4-8974
NY
Bache
&
NEW
MONTREAL
YORK
Co.,
J.
B.
Hanauer
&
Co.,
140
South
Canadian Stock Exchange
■'
<•
^
Toronto Stock Exchange
HEAD OFFICE: 230 Notre Dame Street
Branch
Phillips Square
•
—
50 Jean-Talon St. West
Montreal
170 Bay
CHICOUTIMI
West, Montreal
Offices:
Street, Toronto
A
-
—
DRUMMONDVILLE
SHERBROOKE
Beverly Drive.
Hart
&
Members: Montreal Stock Exchange
(Special to The Financial Chronicle)
BEVERLY HILLS, Calif.—Alan
Julian has become affiliated with
—
—
QUEBEC
THETFORD MINES
NEW
Toronto, Ont., Canada
CONNECT
Savard
Chicago
J. B. Hanauer Adds
YORK
—
—
—
ST. JOHN'S, P. Q.
TROIS-RIVIERES
MIAMI BEACH
Military Investors
1-142
AND
Wilson, Jr. With
1203
Members:
61
securities business.
140 South
Dearborn Street. He was formerly
with
Kneeland
&
Co., in
the
investment department.
CHARLES KING & CO
Exchange
QUEBEC
City to
(Special to The Financial Chronicle)
with
.
V
Stock
York
CHICAGO, 111.—Francis S. Wil¬
son,
Jr. h^as become associated
'
.
a
New
Bache Co. in
traded
or
in
Francis S.
Exchanges at
in New York in United
States
Terrace,
engage
BONDS
-
all Canadian
on
Hill
Military Investors Development
is engaging in a securities
SAVARD & HART S. A.
Corp.
business from offices at
521
Avenue, New York City.'
•
-
Canada, Ltd——.. -17.:; ;:o.7o r;ao-y2^;6.7*
of
National Grocers Co., Ltd.
over
consumes
-
-
^*7.8
K
' l-A...
'""
Wholesaler
:
per
and
National Drug and
'
256,000 barrels
'I /
14
•products."
"The -clearing up of the Middle
; r
A
3.0.0 ;b3$M
12 ;
,
Ltd.,
Royal Rice
Manufactures
•
.
situation, ;• after: the. Sue#
Crisis, e ombined with, lower
tanker rates, has cut ihto our im¬
-
5.9
:•
forms;
advertising
products, etc.
* \ " '
play
tion
in Montreal
Corp.
17
; * V
•
"
Business
•
-
in
-:
-'
Refrigerating &
Storage Ltd.
Moore
1.00
and
-
Operates general and cold storage
and will continue
-
locomotives
production
Montreal
has shifted the atten¬
area
12
Ltd.
have
bring about accelerated interest
ffeal
Investment Dealers' Association of Canada
0.40
•
dealings
production,
Makes
/•-"At the present time, the Mon-;
°
.■
'
Ltd.
demonstrated the vulnerability of
mediate markets.
Exchange
grain
Ontario gold
East
Montreal Stock Exchange
12
•:
4.2
Mclntyre Porcupine Mines,
some
two influential
"The recent difficulties
,
-
1957
,
,
:
has-resulted
:
13
distribution
tion of the major oil companies to
Canada among other areas. This
>'
farm
Ltd.
Oil
weigh in this connection
be expected to improve
the situation.".
in that
-
/
bl20
McColl-Frontenac Oil Co.
this-source of supply.-. The' un¬
reliability ,of, the political situation,
Oswald & Drinkwater
1957^
1957
5.00
on
picture
McCabe Grain Co., Ltd. "B"_
can
enced
.
28,
Implements and machinery
to
Which
June
Paymts. to
June 28, June 28,
*
Complete line of
Canadian market.
are
tion
Based
theatres
,
using
spend
12 Mos. to
Massey-Harris Co., Ltd._____
;
"The oil
en¬
dorsement of the excellent growth
prospects in store for
U.
secutive
M,arcus Loew's Theatres, Ltd.
$350,000,000 to increase capacities,
industry, both in U. S. adding over 300,000 barrels per
doubtedly has since risen signifi¬
cantly, is
and
nadian
acres.
Quota-
—Canadian $ S—
gas
$2 billion figure, which
% Yield
Extras for
Divs. Paid
local
No pipeline facilities existed
.
Approx.
No. Con-
Years Cash
•
sions
a
Including
oil other than comparatively
ones.
Viewpoint
Dynamic Economy
Cash Divs.
"At the present time, almost (with the exception of a short line
of approximately 40 miles, from
situation, very attrac¬ 200,000,000 acres of petroleum and
Turner Valley to Calgary). By the
tive," George H. Sellers, Presi¬ natural gas rights are under active
end
of
1956
pipeline facilities
dent, and Alexander G. Bailey, exploration in Western Canada, in
existed, delivering Canadian crude
Vice-President and General Man¬ broad sedimentary deposits which
to the Pacific Coast and serving:ager of Bailey Selburn Oil & Gas are favorable for the discovery of
the northwest United States mar*
Co. Ltd. asserted in the course of oil and gas.. By comparison the
kets.
To the East the Interpro*
an address before a private meet¬
total area of the State of Texas
vincial Pipe Line wa# carrying,
ing of oil and gas industry secu¬ consists of 170,000,000 acres. Un¬
crude
from
Edmonton
through
rity analysts in New York City der normal conditions it would
Duluth to Sarnia, and is now en¬
on Sept. 17.
take -over
35,000 wildcat wells
tering the Toronto market area.
"Just
this past
Sunday," the and 20 to 25 years to effectively
Pipeline facilities also existed to.
assess Western Canada's vast area.
speakers noted, "the New York
serve
the
Minneapolis-St. Paul
"Still another plus factor is the
'Times' carried an item from Ot¬
area from Saskatchewan.
tawa stating that in the 1945-1955 Canadian Petroleum Association's
"Today,
Canada's
production
period United States interests in¬ estimate that the finding cost for
creased their investment in Can¬ oil in Canada is about 80c per potential exceeds 800,000 barrels
Refinery demand will not
ada's oil industry from $173 mil¬ barrel as compared with $1.76 in daily.
be reaching that level until 1960
lion to more than $2 billion. This the United States today. Canada's
when present cohstrucTTSh projis 74% of the total investment in development program is still in
ccts are due to be completed. By
the Canadian oil industry.
I am its relative infancy compared to
that
time,y however, production
sure we .fill, agree that a great deal
that in
Texas.
Except inucoraof
highly professional
research paratively narrow areas, explora¬ potential is expected to be 1,500,000 barrels per day.
During the
and analvsis preceded the decisitory wells have been drilled in a next 2 l/z years Canadian refineries
able
oil
29
page
1947 there were no markets for
In
Compares Exploration
statistics avail¬
make the Canadian
from
market for gas.
available
no
was
sales prospects.
"There are many
background.
year
program wa.s
exploratory area and costs with
that in the U. S. A., and weigh the unreliability of the Middle
East situation and possibility of price reduction on future
future.
Continued
to note briefly some
me
historical
petroleum executives offer supporting
Canadian
in
Thursday, September 26,1957,
...
(1346)
30
Fifth
Geneva, Switzerland
SAVARD & HART LTD.
London, England
iii
i
■
Volume 186
Number 5676
.
The Commercial and Financial Chronicle
.
.
\
Canada: A Conservative
Cash Divs,
•
Including
No. Con-
Extras for
secutive
12Mos.to
Years Cash
.
June
Divs. Paid
C-
•
Quotation
28,
Based
1957
on
June 28,
1957^
1957
'
—Canadian 5 §—
National
Hosiery Mills
Manufactures ladies'
Ltd.
0.32
21
2.00
4.15
7.7
to
hosiery
National Steel Car Corp., Ltd.
Railway
10
25 y2
7.8
42y4
3.7
Dr.
automobile chassis,
cars,
etc.
Marcus
economist
National Trust Co., Ltd
59
1.55
General trust business, also
accepts deposits
in
a
of
to
recent
Nadler,
The
study
Inflation"
Neon
Wire
28
Weaving
yO.60
141/2
4.1
Co.,
24
wire
mesh,
oloth,
weaving machinery, etc.
Noranda
2.50
47
5.3
Mines, Ltd.
28
2.00
12
0.53
4.1
48%;
-
Specialty Manu.
4.25
.
13.6
Ltd.
12
...
0.80
bl5
5.3
of prices. Sev¬
55
1.50
Marcus
87
...
1.15
Products
4.6
20
springs,
plastic products
bumpers
1.50
25
32
3.65
37
to
this
"First, while actual
process:
warfare has
6.0
2.7
penditures on all free countries,
particularly
the
United
States.
Large-scale defense spending con¬
and
Page-Hersey Tubes, Ltd
Industrial pipe and
do-
as
ceased, the aggressive imperialistic
policy of the Soviet Union
has imposed
heavy military ex¬
Co.,
Ltd.
Automotive
well
as
gin—contributed
24%
first mortgages
in
Steel
Nadler
vmestic in ori¬
Accepts deposits and sells deben¬
invests
—
international
4.7
32
and cereals
Ontario Loan and Debenture
tures;
the
trend
eral factors
Ogilvie Flour Mills Co., Ltd._
Ontario
II
fol¬
in
upward
,
Co.
not
lulls
Co.
Mfg. and distributes office furni¬
ture and supplies
•
-
Mills flour, feeds,
War
by a
period
of
sharp
defla¬
tion, but by
Quebec copper and zinc producer
Office
after-
lowed
Copper and gold producer
tinues to be among the
important
inflationary forces.
tubing
♦
Quotations represent June 28, 1957 sale prices or the last sale price
prior to that date. Bid and ask qi Otatloas are us of June 2b, 1957.
§ Add current Canadian Exchange Rate,
t Adjusted for stock
dividends, splits, distributions, etc.
b Bid.
Continued,
on
page
32
the
tion
people
sions
and
and
the
ment
has
large-scale
induced
dividuals
and
The
,
houses,
goods,
in
productivity, has created
of
a wage-
tors
of
of the
of
cost
which
largely absorbed by the
Similarly/ the
cost-of
transportation
has
risen
steadily, further increasing
cost»of-doing business, j 1 m
The failure
in the
major war—and
their ; sharp rise during the past,
two years, have led to the belief
that permanent creeping inflation
able
element
an
after
case
tute
must be
economy.
of services to decrease—as
is
ultimate consumer.
is
a
strong
inflation
country," Dr. Nadler
"which permeates all sec-r
commodity prices and the cost
"Corporate and other taxes are
exceedingly high and they consti¬
every
inevitable.
stimulated
the
has
belief
This
demand
dur¬
for
consumer goods, housing, and
capital producers' goods.
■*
"Thus,
there has been
dence of restraint
on
any
evi¬
no
level
—•
the
Federal, local or private. Govern¬
ment^ stockpiling ' and
the' farm
"The
cheap sources of many support policy have levied heavy
raw materials have been
burdens
on
the
depleted.
taxpayer and have
Consequently, the materials have bolstered high prices.
Corpora¬
to be imported from remote tions have stepped up capital ex¬
corners of the world, generally at
penditures to a new peak in 1956,
a much higher cost.
further stimulating the demand
"The quality of many goods has
for goods and services.
Consumimproved considerably, and this,
Continued on page 32
plus the constant changes in the
\
;
.
Private
Wires:
NEW YORK
:
-
MONTREAL
-
LOS ANGELES
Markets
in
Specialising
CANADIAN IISTED SECURITIES
in¬
to
in
turn
Cradock Securities Limited
for
services
stimulates
by
55 Y0NGE ST.
mate¬
means
being
TELEPHONE EMpire 3-4236
•
•
Montreal Stock Exchange
Canadian Stock Exchange
wholesale
destruc¬
MONTREAL:
property during the war
the huge and costly task
rebuilding homes, factories, and
While
TORONTO 1
•
Members: Toronto Stock Exchange
of
the
of
455 CRAIG ST., W.
LOS ANGELES:
NEW YORK: 150 BROADWAY
transportation.
—
215 West 7th St.
UNiversity 6-5305
—
—
TRinity 9077
BArclay 7-8100
the
United States escaped
battlefield, the drastically
a
curtailed
TORONTO 1
in¬
-
created
of
185 BAY STREET
persistent
wages/* regardless
-
price spiral.
rially the capital expenditures by
tion
The Toronto Stock Exchange
and
industries.
avers,
unpre¬
demand
and
and
an
on
of
firms
This
the
"Third, the
r
service
constant
corporations.
Members
the
"There
unemploy¬
millions
scale.
consumers,
S. J. BROOKS & COMPANY
was
by similar increases for
in
crease
general
business
indebtedness
exaggerates
DEPT.
Yet any
; to purchase" new facilities
with less external financing.
in
cedented
ENTERPRISE-6772
MGR. U. S.
those
that
incur
Philadelphia
readily.
manufacturing industries
followed
a
future presumed to be
better.
The faith in the
determination and power of the
government
to
prevent depres¬
Boston, Buffalo, Chicago, Cleveland, Detroit
-
'bias' in the
always
WALKER 5-1941-2
JAMES A. TRAVISS
cannot be raised
major depression are
thing of the past—have created
spirit of optimism and specula¬
a
and
able
These objectives — cou¬
pled with material progress made
in raising the economic
security
a
NEW YORK
employed in
industries
in¬
has
nations.
belief
STOCKS
workers
and buildings.
As a
result, business concerns whereeven possible are
striving to ob¬
tain higher profits in order to be
considerably and their
productivity, unlike that in manu¬
facturing mining and agriculture,
"Second, the desire to avoid un¬
employment and to extend the
economic security of the people
has dominated the
policies of all
of
CANADIAN
of
service
the
which
in
was
Normetal Mining Corp., Ltd.
the
creased
flation
vlj ».
.
..
number
by the tax authorities are
to replace worn-out
inadequate
machinery
increase in wages for workers in
World
wire
.
"The depreciation reserves per¬
mitted
experi¬
ences, the in¬
set
Ltd.
Makes
"unlike
w a r
Ltd.
advertising signs
Niagara
that
previous post-
Neon Products of Western
Canada
consulting
Bank,
"The Menace
finds
and distribution of food
products have led to a substantial
rise in food prices.
the halt
as
refinements
cessing
inflation.
Hanover
on
well
as
many
that have taken place in the pro¬
warns,
describes the dilemmatic price of inflation
consumers' dur¬
,
Moreover, the
however, the "real danger will arise during
the next upswing in business
activity." In summarizing the
factors prompting.what he calls
"inflationary bias," Dr. Nadler
reviews the principal cause of the 1955-57
inflation and
Paymts. to
June 28,
but
years,
of many
31
able goods, has increased produc¬
tion
costs,
and
hence
prices.
Hanover Bank's economist doubts price increases in the imme¬
diate future will be as pronounecd as
during the apst two
Approx.
% Yield
-
models
The Menace of Inflation: Nadler
Viewpoint
Dynamic Economy
Coupled With a
(1347)
production
for
civilian
during the war resulted in
pentup demand for housing and
all types of goods.
The postwar
'bootstrap' efforts of many under¬
developed countries * f urther con¬
use
a
tributed
to
the
strong
for capital producers'
Industrial, Mining and Oil Securities
Affiliate of Watt & Watt
demand
goods.
6 Jordan
Street, Toronto
"Finally, the growth and struc¬
ture
of
population—caused
by
a
sharp
increase in the birth rate
the lengthening in the span
life — further intensified the
Members
and
of
urgent
demands
services.
that
It
the
is
for
well
goods
to
population
Toronto Stock Exchange
and
Montreal Stock Exchange
remember
is
heavily
weighted by the aged and chil¬
dren and by millions of men in
the armed services, all of them
heavy consumers but non-pro¬
Canadian Securities
Private Wires Between
ducers in the utilitarian economic
Watt & Watt
sense.
Accounts
Members:
Toronto Stock Exchange
Ganadian Stock Exchange
11
Calgary Stock Exchange
Winnipeg Grain Exchange
King Street West, Toronto—EMpire 6-9971
BRANCH
HAMILTON
VAL D'OR
NORANDA
TIMMINS
in
the
The
costs
of
doing
increase
in
wages
While
the
Incorporated
workers
number
remained
business.
has out¬
70 Pine
or
Fort William
Street, New York 5, N. Y.
London, Ontario
WHitehall 4-3262
production
more
Dealers, Inc.
Montreal
Port Arthur
productivity.
of
Buffalo
Members National Association
of Security
New York
less
ROUYN
static,
Private wire connecting Branch Offices, New
York, and other leading exchanges
the rise in
CHIBOUGAMAU
KIRKLAND LAKE
1955-57 Inflation
"The
principal cause of the
1955-57 inflation surge," according
to the economist, is the sharp rise
stripped
OFFICES
for
Winnipeg Grain Exchange
Investment Dealers' Assn. of Canada
workers
tries
that
in
of
non-production
manufacturing indus¬
has risen
sharply.
The total
Bell
v
System
Teletype N. Y. 1-374
J
The Commercial and Financial Chronicle.
(1348)
32
Continued
/rom
forces of inflation
31
page
ing in
The Menace of Inflation: Nadler
and to
general
prosperity.
This, they
hold, is preferable to striving for
higher living standard,
a
concomit¬
ant readjustment periods and unemployment.
a
*
stable dollar, with its
that
belief
bias
inflation
"This
and
the
fully
chase will cost more
anticipatory
heavy
caused
Reserve
their
Economic Disease
permitted to run its course,
of inflation will
It re¬
the real value of all savings
persons
living on
well
as
come,
This
devices.
and
combined
to
leads
both
in
lead to
a
been
has
as
a
or
make
to
use
halt
to
them
in
cline
at the cost of
a
de¬
business
activity accom¬
panied
by
unemployment.
In
either case there is a price to be
many
.countries.
those who live
matter
inflation
of
forces
how
strong
may
be,
no
on
a
fixed income
and have assets expressed
the
of
sums
they
be
on
The
money.
will
burden
stopped either by general
voluntary restraint in all sectors,
public and private, or by rigid
credit restrictions implemented by
fiscal discipline.
So far there is
can
point
fall
on
in fixed
greatest
those
living
pensions, Social Security, and
the beneficiaries of life insurance
policies, truly the 'weakest' sector
of the population.
"If,
on
the
other hand,
the
sign of restraint by the govern¬
when
now
still
are
view
From
the
government,
Act of
1946
and
vent
to
end
an
much
bring
to
these
order to pre¬
in
in
business activity and employment
a
later
greater
decline
on.
the
is
difficult
outcome
forces
will
elements
predict what
these conflicting
of
The
inflationary
The cost of
strong.
are
is
rising; the in¬
pronounced; and
sign of restraint in
bias
is
to
be.
business
is
no
the economy. On the other hand,
the
productive capacity of the
the
has
war
largely
been
Investment
Dealers'
tive credit restraint.
Credit is not
easily obtainable and the cost of
high. These forces may
the rise in the cost of
goods and services to a complete
money is
not bring
halt,
but they are bound to slow
down the inflationary process.
Barring unforeseen events, the in¬
in
crease
services
is
commodity
in
prices
immediate
the
and
future
not
likely to be as pronounced
during the past two years.
and
real
is
is
arise
organized
demanding higher wages
looking toward a further
the
part
is
work
of
of
There
week.
is
willingness on
to reduce
a
Congress
being brought
authorities
serve
INVESTMENT
SECURITIES
and
'tight
the Re¬
on
to
the
relax
money'
policies; and gov¬
spending will continue
ernment
to rise.
,
J
Woolen,
goods
36
King Street West,
James
TORONTO
Street
South,
HAMILTON
xmzmzmmmsmsmzmmmmmmzzsmizzszszmssmmzsmzm
in
cotton
The Investment Dealers' Association of Canada
sense
and
of
of
the
with
policy
IP
Toronto Stock Exchange
•
Montreal Stock Exchange
Stock orders executed
income,
applied.
involves
sacrifices
but
tinued
Photo
V
jewelry and associated
<'V
Engravers
.*
5.9
I
—
_" y
•
0.35
-'f -•'*
Electro-
&
'
■
V
typers Ltd.
Photo
■
,
,
18
1.9.
„
■
.
-
-
24
J.
.
'v
2.25
.
"
40 V
5
6"
electrotypes,'-'" V
engravings,
-commercial
photography, _etc.» ,V
Pickle Crow Gold Mines Ltd. : 22
Ontario gold producer
/*
Development, Ltd„Vl
.
1.07
O.10
9.3
10?/2
9.5
45
4.0
2.00
83
2.4
*4.00
b85
4.7
V, 1.00
25
gold
interests
-
-
•
•
Powell River Co., Ltd.___V_Largest producer of newsprint
.the West Coast
Power Corp. of
20
on •
••
.
„
1.80
-
.
..
Canada, Ltd..
21
A
utility holding management and
engineering company
T ■
Premier
Trust
Operates
Co.
13
trust company
as
trustee, etc.
*
.
i
:-
.
Listed
Companies
Which
Paid
Have
Consecutive
Dividends From 5 to 10 Years Appear in the
Second
Table
Starting
on
35
Page
Preston E. Dome Mines Ltd..
it will
T.
gold producer
Brothers & Co.,
Newsprint
Ltd...
,
0.08
14
3.00
54
5.6
21
1.00
10
10.0
43
1.30
32
4.1
7.45
related products
and
Provincial Transport Co:
coach
Operates
in
lines
Quebec
Ontario
and
Quebec Power Co
Operating
public utility
Robertson
(P,
L.)
Manufac-.
,
turing Co., Ltd
Wide
of
range
and
screws
Robinson Little & Co.,
Wholesale
ing
of
and
dry
Ltd...
.
merchandis-
retail
variety
goods &
16
0.60~ bl5
4.0.
10
0.80
b9Y4
8.6
2.15
*11%"
3.0
29
0.26
19%
1.3
22
0.80
iiy4
7.1
21
0.60
iiy2
5,2
15
1.10
15%"
7.1
11
0.20
i
i
22
1.00
bl3
7.7
bolts
-
■
store
lines
ROYAL RANK OF CANADA
89
world
See
•
advertisement
Bank's
on
Oil
production
Russell
81.
page
ROYALITE OIL CO., LTD...
development
and
Industries
Ltd
Holding company—machine tool
interests
Sangamo Co., Ltd
Electric
meters,
>
motors, switches,
etc.
Sarnia
Bridge Co., Ltd..
Steel
bridges
and
related
production
Scarfe
&
Co.
Manufactures
Ltd.
and
sells varnishes,
paints, etc.
cotton
and
wool
♦
Quotations represent June 28,
prior to that date.
§ Add
current
% Inactive
b
1957 sale prices or the last sale price
Bid and ask quotations are as of June 28, 1957.
Canadian Exchange Rate.
issue. No Exchange trading.
Bid.
peo¬
Underwriters and Distributors
the
in
of
Government, Municipal and
Corporation Bonds
is kept in
•
monetary
discipline
a
the
on
an
mean
Enquiries invited
are
course
part of
the
con¬
stability
HARRISON & COMPANY
and
LIMITED
R.
Peirsol
66
(Special to The Financial Chronicle)
BEVERLY
Charles
St. Thomas: 354 Talbot St.
connected
E.
HILLS,
Marland
with
T.
Calif.
has
R.
was
mick
\
&
previously
Co.
with
of
STREET WEST, TORONTO- 1.
Telephone:
become
Peirsol
KING
—
panada
CANADA
EMpire £-1891
Offices
HAMILTON, ONTARIO
WINNIPEG. MANITOBA
&
Co., 9645 Santa Monica Boulevard.
He
1.1
18
Ontario
Price
the rise in
Such
economic
Montreal, P. Q.: 215 St. James St. W.
*
Members of The Investment Dealers' Association
Sanlt Ste. Marie, Ontario: 116 March Street
Eastman Dillon, Union Securities & Co., New York
16
;
of
merchandise'
all Exchanges
Toronto, Ontario: 50 King Street West
London, Ontario: Huron & Erie Building
to
b25V2,
'
r,
Ltd.
Retailer
where
ana
fiscal
and
Joins
Private Wire
.
v
growth of the country."
on
r
1
power
be avoided
properly
many;
members:
can
environment
increases follow
line
LIMITED
-•
'
continue.
productivity, spending
The Midland Company
knitted vf
v*
7.5
bl0%
'I
„
1.50
waste, cotton, wipers, etc.
.
and
purchasing
the dollar will
wage
Corporation Securities
'* " V.
'
the dangers in¬
themselves
reassert
"Inflation
Municipal
silk
'•
:
25.0
inflation
economic
Canadian Government,
and
V
>
People's Credit Jewellers
and begin to
practice, restraint, the forces will
erosion
(gi
Unless the
economy.
herent
members:
Responsibility
"Thus,
the
responsibility
of
avoiding a turn for the worse in
the
inflationary spiral rests on
each individual in very segment
ple strongly
corpn. limited
4.00
0.80
•
-
Scythes & Co. Ltd
Individual
of the
Midland Securities
19
51
_________
,
_
Manufactures
66
i:oo
-V
fabrics
worsted
Ltd.
-
'
-
Mfg. Co.,
Woolens
.
1957
-
" :
a
Penmans
the
corporate taxes. In addition, pres¬
of Canada
Paton
1957♦
June 28,
Operates 796 branches throughout
will
Already
indication
the
sure
$
danger
activity.
in
no
Association
'
-
gold dredging project
in Colombia, S. A.
met.
"Despite the decline in business
activity, the Reserve authorities
continue to pursue a policy of ac¬
labor
Exchange
1957
on
Paymts. to
June 28,
.
—Canadian $ §—
"
Dredging Ltd. —19
Operates
tion
June 28,
productivity should rise.
cut
Stock
V
Pato Consolidated Gold-
Moreover, competition is keen and
ness
Members:
12 Mos.to
Based
country is enormous and increas¬
ing rapidly. The pent-up demand
created during the depression and
"The
Company
Approx. *
% Yield
Quota-
Investment—holding company—:
It
during the next upswing in busi¬
LIMITED
secutive
Divs. Paid
Placer
Inevitable
Slow-Down
Extras for
: t' '
to keep the economy
growing, is under the
obligation
strong
forces
No. Con-
Years Cash
this
Danger In Upswing
Montreal
Cash Divs.
the pressures
moderate.
of
sound
as
A. F. Francis &
Viewpoint
Dynamic Economy
Including
committed under the Employment
there
power of the dollar
all measures available
purchasing
or
way
health.
"No
halt
a
doing
Dilemma
factors
in
policy
drastic.
problem thus confronting
the nation at present is whether
to permit the forces of inflation
to continue at the expense of the
sharp decline
witnessed
present
more
even
Prosperity
by different
segments
of
generated by inflation is an eco¬ paid
the population.
If inflation per¬
nomic disease which merely gives
the economy the appearance of sists the price will be paid by
foreign
to
long-term
and
"The
activity.
becomes
may
now
flation
Where infla¬
of economic
life it brings in its wake serious
social and political consequences
in business
tion
their
it
over-pro¬
these
short-
rates. The Reserve authori¬
ties, however, can break the forces
of inflation only if they persist
expenditures of corporations and
the
installation of labor-saving
duction
the
in
crease
31
page
Coupled With a
whose
concerns
profits will decrease or who
be forced to liquidate.
money
of those whose
keep pace with
living costs. Eventually, this de¬
velopment will be reflected in the
market place.
"Inflation stimulates the capital
-
business turned down¬
measures
credit
fixed in¬
decrease.
were
taken to
availability of bank
resulting in a sharp de¬
ward,
as
cannot
income
a
in
credit re¬
business activ¬
after
to
as
increase
purchas¬
ing power of the growing number
of
of
persisted
of active
even
began
soon
as
be serious and widespread.
duces
dangers
are
In this
respect the Reserve policy differs
from that adopted in 1953 when,
ity
the consequences
stated in dollars and the
authorities
have
and
policy
straint
"If
Despite
the
the
of
aware
inflation
and
speculative buying.
An
public.
and
boom
"The
postponed pur¬
later on has
any
jrom
Canada: A Conservative
unemployment, the effect will be
by those out of work and
those business
"Creeping inflation prevails
and
can
easily degenerate
into galloping inflation.
As ex¬
tinue to mount. Private spending perience has shown, this invari¬
also has risen persistently through¬ ably leads to economic
disloca¬
out
the past two years as evi¬ tions much more difficult to cure
denced by the growth of individ¬ by governmental and central bank
than
if
the
forces
ual consumption expenditures and intervention
of inflation
were
to be
consumer credit.
brought
employment,
to full
leads
it
the
or
great
"Many people believe creeping
inflation desirable. In their opin¬
ion
Continued
setback in business plus
a
paid
the
sharp in¬
crease
in the gross nation prod¬
uct, the Treasury's surplus has
been pitifully
small.
State and
local expenditures and debt con¬
ment
to
present wants.
meet
*
heavily
borrowed
have
ers
checked by
are
credit and fiscal measures, result¬
.Thursday, September 26,1957
.
Affiliated
MASTERS
-
CALGARY,"ALBERTA
With
SMITH
&
PARTNERS
Limited
McCorMembers
The
Toronto
Stock
Exchange
■Volume
186
Number 5676
The Commercial and Financial
Chronicle
...
(1349)
\
Canada: A Conservative
Coupled With
Viewpoint
Dynamic Economy
a
Cash Divs.
*
■|
—
Including
No. Con-
Extras for
secutive
12 Mos.to
Years Cash
June
Divs. Paid
Quota-
Based
tion
28,
Co.
51
utility
Sherwin-Williams Co. of
1957
Paymts. to
June 28,
1957♦
1957
•
enamels,
Ltd.___
ale,
6tout
and
911/2,
2.05
39
1.40
.
carbonated
5.3
21%
6.4
V
beverages
"
,
Sigma Mines (Quebec) Ltd._
18
Quebec gold producer
suits
and
.
line of
9.8
1.00
<
,
bl9'%
-
20
-
5.1
<
bl0V2
5.7
■
0.50
18
0.90
bl7
2.8./
and operates through subs,
dept. stores in Canada
Smith
20
for
5.3
power
stampings
and
..Canada
Publishes
across
1.50
30
5.0
in
Ltd
seven
22
daily
Canada;
2.00
54
3.7
newspapers
operates
three
stations
Southern Canada Power Co.,
Ltd.
Operating public
ern Quebec
in hand with the powers that
be,
in keeping the pressure on interest
rates. The successful new
utility;
2.625
60
attractive
are
chase these
The
to
investors,
2.00
107
1.9
Ltd.
10
paving
Wholesale
buBinoss
and
Steel Co. of
2.00
421/2
4.7
contractor
retail
23
small
1.00
24i/2
4.1
is
market
not
of
Engaged in all branches
of
42
1.80
of
the
bringing
equity
buyers
new
unimportant amount of this
money is being put to work in
Treasury bills and the new money
Recent
was
Offerings
recent
of
one
Heavily
69^
2.6
21
2.00
b42y4
4.7
18
1.25
14%
Makes extreme friction lubricants
8.5
i
.
Ltd. "Vot. Com."
Markets
petroleum
Ontario and Quebec
new
32
tO-16
28
0.80
3.0'
1.65
4.8
In
products
of
scriptions for the 12-year 4% bond
aggregating .$4.6 billion as against
amount
offered
Because
for
$500
the
of
the
of
4%
(G.)
mand
Ltd
21
1.90
38
5.0
Operates chain of 103 drug stores
Taylor, Pearson
(Canada) Ltd.
and
Carson
11
Holding co.—interest
in
0.50
9%
5.4
tive and household appliances"
]'
Ltd.
32
Ontario
\
gold
producer
Canadian
vestment Trust
0.10
2.10
4.8
_
General
In¬
Ltd
29
0.25
5%
4.3
100
1.50
,44%
3.4
Investment trust of the manage¬
ment type
Toronto-Dominion
Operates
■;
460
C Canada, jjnp IpOHew
one in London, Eng.
443
In
York
and
®
;
/
♦
Quotations represent June 28, 1957 sale prices or the last sale
price
prior to that date. Bid and ask quotations are as of June
28, 1957.
§ Add current Canadian Exchange Rate,
t Adjusted for stock
dividends, splits,
b
4%
"2%
issue
distributions, etc.
Bid.
Continued
on
page
34
current
5s"
$1,750,-
000,000 which the Treasuiy wanted
from this issue.
As
a
re-
of
excess
The
game.
is
a
Utah
shares
be
used
company
premium
Power
&
Light
case.
Co. is
the
above
.,
.,
„
tra* stealP beating
money has
savers
chy.
case.
Colorado.
Liquidity
The
10-month
short-term
was
note
it
and
purposes,
™
taken
For tlie 12 m0nths ended May
31, 1957, the company and its subsidiary had consolidated operating
there
was
who
revenues of $42,101,000 and eonsolidated net income of $7,725,000.
must
takf ^ thoae wf° m,st
a short-term liquid obliga,
There
account
was
also tax and loan
buying
of
this
Merrill Lynch Adds Two
issue
(special to the financial chronicle)
he
,
corporate
especially the
tt
...
,
.
bond
,
r
jn
have
,
market,
the
bonds
New
have
issues
been
to
the
staff
With Wm. C.
very
tax-free
of
doing
well,
Roney
CSpccial to Trin Financial Chronicle)
FLINT,
Largent
as
whole.
because
the subscrip¬
obligation added up
$3.1 billion as against the $750
which
dertook
to
Mich.
is
—
now
Robert
with
Wm.
fering
As
of the
the
was
in
issues
the
Charles H. Burgess & Co.
Treasury un¬
through the of¬
10-month
with
case
security.
the
DEALERS
other
IN INVESTMENT
raising
operation of the Government, sub¬
scriptions ^in excess of $100,000
allotted
were
new
on
money
SINCE
SECURITIES
1909
the basis of 22%
for the 4% certificate of indebted¬
Members
ness.
Toronto
Stock
Investment Dealers' Assn.
"Free
Riders"
Depress
12
year
4%
Exchange
of Canada
12-Ycar
255
Bond
The
bond
went
St., Toronto
Bay
to
EMpire 4-8471
Branch—Brantford, Ontario
fairly good premium when trad¬
ing was underway on a "when
a
issued"
basis, and this was an
opportunity for the so-called "fast
moving
operators"
the market
MINING CORPORATION LIMITED
l
'
„
t
-
.
j
.
Developing extensive iron
Bay
ore
properties
Officers and Directors
J. George Boeckh, Vice-President
M. C.
Maddigan, Secretary-Treasurer
J. C. L
Allen
S. J. Bird
J. M. Eastman
Robt. C.
Stanley, Jr.
HEAD OFFICE
-
Suite 602, 199 Bay St.,
Toronto, Ontario, Canada
of
operators
the idea of making a fast buck
for the first time in many a noon
To
a
certain
extent
there was
for these operators,
those who were agile
enough to get out while quotations
success
GOODWIN HARRIS & COMPANY, LIMITED
especially
area.
D. Banks, Chairman and President
Stock
and many of the old "free riders"
put in large subscriptions for the
new 4%
Government bond, with
some
in Hudson
get .out
through the selling of
their allotments.
BELCHER
to
MEMBERS
Toronto
for the 4% bond were high enough
so
that a small profit or no loss
was
In
The
347
taken.
spite of fast moving profes¬
operations, the 4% Gov¬
hands,
with
portedly
small
among
subscribers
to
dhe
Stock
Dealers'
Exchange
Association
Branch
Canada
Offices
re¬
important
obligation.
of
Toronto, Ontario
Bay Street
into strong
investors
this
Investment
Telephone EMpire 3-9041
sional
ernment bond has gone
WALLACEBURG, ONTARIO
.
M.
C.
Roney & Co., 517 Harrison Street
the
raise
oC
doidrumS)
lew takers at the original offering
prices.
added
Lynch, Pierce Fenner &
Bcane, Congress & Shelby Streets,
,
.
been
Merrill
issue market,
new
much
.
^l^/^md^lorbT;
Boom, and Richaid C. Foibes
,
de
^
,
a
Lake
ice in the southwestern portion of
Ten-Month Note Affords
f01.
Salt
The
company's
operating
subsidiary, The Western Colorado
Power Co., supplies electric serv-
into it and this
gone
will continue to be the
tions for this
million
<■
a
servme in ,the
commercial district of
,
of
sums
The shortest
maturity in the
package, the 4% certificate, the
reopened issue, which matures on
Aug. 1, 1958, also was not without
to
of
for
con-
public utility operating in south eastern Idaho, northern, central
and southeastern Utah and southwestern Wyoming. It is engaged
principally in
the
business
of
the
well liked obligation and
very
considerable
a
$100,000.
400,000
will
the issue price for this issue was
very small (only 4/32nds), and this generating, transmitting,
distribafforded the "fast get it boys" uting and selling electric
energy
only a very thin margin to operate throughout its territory, and to a
on.
This optional maturity note limited extent in providing cen-
with plenty of inventory and
the
of
stock
accrued interest in each
period
a
lion
with
sale
,
This will allow
is
compared
™on
a Dm 01 1UAD1 >°\
struction program of the
andits ^sidiary.
price and still be ahead of
_
by
Aj?e ,gl0UP
this
deposit
banks
to
sell
5-year callable notes under
heavy de-
very
The
The new bolAds ^ b<r redeemable at general redemption prices
ranging from 107.54% to par, and
at fecial redemption prices reexpected ceding from 102.29% to par, plus
to
note, because the reported subscription amounted to $6.1 bil-
friends
Bank
branches,
the
a
,,,ho
*
common
subscribing
of about 20 days.
tion.
suit, the allotments for this obligation were 28% for amounts in
Teck-Hughes Gold Mines,
Third
for
to raise
automo¬
By
premium
,
also
was
bonds,
1987, at
1,
interest, to
Net proceeds from the sale of
bonds and • from the con-
r
,
the
big
•
.
Tamblyn
rations.
m*/
There
5.10%.
p
s
mil-
very
Oct.
accrued
h
sea-
lesser extent by certain
corpo-
'
gold producer
the
$M.o;w/vere/ll/tiSed1'/TheC basis. ;/ich'
howe™;
the
list. did not make
nf
Sylvanite Gold Mines, Ltd.—
for
foldvices" taken hrfa^ge amounts
{^^o^^iS.S anSt
™as
have
Government
due
and
capital expenditures for the
ma-
put out by the Treasury
tremendous, with the sub-
the
yield
Well Taken
The demand for the 4%
demand
51/4
for
was
care
V1_m
below
.
issues
lion.
related products
Supertest Petroleum Corp.,
the
series
102.29%
F*ve Optional Note Issues
the
and
afforded
soned investor.
successful
money raising purposes such
this one was, or just a refund-
.
fiduciary business
Stuart (D. A.) Oil Co., Ltd.__
most
undertaken by
Government, whether it
as
was
.
Sterling Trusts Corp.______^
Treasury financing
the
ever
new
steel
production
Ontario
the
winter
an
turities.
Canada, Ltd._i__
has
loan account which is
to remain with them for
action
5%%
question
going
This
enough to bring about changes in
Reserve policy.
The un-
ing operation to take
wares
security
did.
and 1958 is still evidently not bad
ventures
Stedman Brothers Ltd
it
buying opportunities
a
position
for the
pattern
riders"
they must,
as
medium term 4% issue "the commcrcial banks used the tax and
The
39
insurance
this
as
"free
fast
as
considerable
and
issues.
uncertain
business
4.4
Standard Paving & Materials
and
maturities
Over-Subscribed
and endowment
General
when
they will find the money to pui-
South¬
of Canada
General
that
raismg issues.
35
is
operation of the Government also
Sovereign Life Assurance Co.
Life
very much hand
into the fixed income market and
Southam Co.,
radio
manufactures
paper
working
ury was
favorable
13
Pulp
about
the
there
100
Inc.
Maturing in"'l969? and V it SrjLdf
$i5'00?.'00,0 of U.tah p°wer &
Light Co., first mortgage
not for
which was so
heavily
scribed, indicated that
Federal
(Howard) Paper Mills
Ltd.
bond
getting out
over-sub-
Halsey,/Stuart & Co.
associates yesterday (Sept. 25) of-
_
were
the Treas-
Light Co., 5%% Bonds
other
investment
money has also gone into the 4%
The high coupon, new
money raising operation of the
:
(N.) Co., Ltd._
hardware
signs yet
policy °on the
no
Considerable
part of the Federal Reserve Board,
proves
.Owns
Pole-line
are
in
^
,
12
.companies;.also metal
and forgings
change
any
rates
0.60
dairy products
Simpson's Ltd.
Slater
tight and there
still very
money
other
Silverwood Dairies, Ltd. "B"
Full
,
4.10
•
,
10
swim
products
rayon
0.40
•
"
Silknit Ltd.
Lingerie,
2.0
.
etc.
30
Offers Utah Power &
By JOHN T. CHIPPENDALE, JR.
The money market is
of
,
16
varnishes,
Breweries
Beer,
.
Governments
on
Government,
Canada, Ltd.
"Paints,
Sicks'
1.85
-
'
"
•
Reporter
on
June 28,
and Power
•Quebec electric
Our
% Yield
—Canadian $ §—
Shawinigan Water
>
Halsey, Stuart Group
Approx.
'
•
,>
33
.
v.
:
.
.
\
—
SARNIA, ONTARIO
'CI.;
'
.
U
and Financial Chronicle
The Commercial
Thursday, September 26,1957
...
(1350)
34
Continued from page
19
assembly line methods, prices will
not be materially affected. On the
Continued from page
hand, prices will rise when
there is a sharp increase in the
Canada: A Conservative
other
Economy
And the New Inflation
The New Matnre
to
ing-
despite
a
the
new
mature
—
others
are
talking about the new
The
inflation.
rises
persistent
is
in
the
general
in traditional
not
terms.
The architects of this new
theory
level
of
may
prices
consumer
explainable
is
are
be labeled "cost-pushers."
thesis
the
of
"cost-
pushers" is that wages are rising
faster than productive efficiency.
Since employers are naturally un¬
willing to take the wage increases
out of profits, prices must rise—
be pushed up.
As might be expected, there are
many variants of this basic thesis.
One interesting concept has it that
through the creation of credit,
the
cost-push
comes
from
rived" wage rise.
The idea is that wages
crease
of
own
pro¬
goods
gaining
not
extent,
hikes
if
are
not
To
completely,
M.
involves
One
thesis.
these
offset by the introduc¬
4.1
Toronto Iron
12
1.00
30
3.3
53
5.00
blOl
5.0
' 11
2.40
40
6.0
b8a2
5.9
an
increase
in
whether
or
Works, Ltd
products
special
and
..,
Co._
Mortgage
issues
mortgage;
first
on
deposits
accepts
and
Finance
Purchases
Ltd.
Corp.;
ob-
Corp.,
0.50
33
"A"__—
Ltd.,
* "
.
V
...
.
Amusement
United
sales
installment
ligations
•:
Operates 34 tnotion picture theaires in Montreal and other Quebee cities
>
-
*
i
-
*
..
United Canadian Shares Ltd,
An
United
17
'•"•VV
type
2.9
1.00
14*8
6.7
12
t
plate and welded steel
products
*.•
'
v.
Corp Ltd
Steel
4.5
233i
0.50
-■
Ltd.Y'B"
of the man-*".,,
investment trust
agement
11
.0.70
33
interests
co.—insurance
Holding
United Corporations
Steel
,•••/:
0.02
Upper Canada Mines Ltd.i;__ 4 18
Ontario
Viau
' "
gold producer
confectionery
3.1
\
h63*
3.00
11
Ltd.
and
0.651
.
,4.8
'
Waite Amulet Mines, Ltd -iQuebec copper-zinc producerv.'
now
Hatcher,
A1
John
and
affiliated
Southern
Listed
W.
"18
17.9
7.25
1.30
'
•
Consecutive y
Paid
Which 'Have
Companies
'
in the
Dividends From 5 to 10 Years Appear
with
Table
Second
Corporation,
Ostoya
are
Starting
Page
on
Walker-(Hiram)-Gooderham ;
& Worts, Ltd.
^w__-;.22
company—extensive
•Holding
Products
Westeel
;
35
Canada
SAN FRANCISCO,
240 Montgomery Street. He
pany,
was
able to be
wold
formerly with
&
Supple, Gris-
27
~ '
sells
veneer
of
range
Co., Ltd.
Weston
paper
,
(George)
biscuits,
•
,
.
•
'
bl4:V
0.95
v
.
-
.
'
6.8
.
-
specialty
23
0.80
25
products
;
' ; ;4.4
&
Plant in Vancouver...-
Westminster- Paper
Fine
Co.
1.20
-
10
Wide
if demand rises sharply for items
produced through
Calif.—Don¬
become
.21
Plywood Co: Ltd. -'
plywood.
with Pacific Coast Securities Com¬
has
*
7.1;.
"
.
Manufactures-and
"B"
Hall
J.
17
n.
provinces-
"B"
>
affiliated
ald
1.20
Bre,weries,
four western
Serves
Western
(Special to The Financial Chronicle)
""V"" •*"'"-Lfd;__:r>-' 17 '
Ltd.
.
With Pacific Coast Sees.
5.2
77*4
•«.'♦•:
"
..
.
^
4.00
Manufactures sheet metal--
Western
'
,
'
liquor interests
with Illinois
now
St. Clair Street.
prices will rise. For example,
mass
manufac¬
"B"
Mid-Continent Investment Co., 676
pro¬
determines
enjoying
demand
large
a
371'z
Traders
CHICAGO, 111.—Bert Anderson,
Philip W. McDonald and Albert
to
ductivity
and
for
that
reason
bears a suspicion of resemblance
to some of the cost-push theories.
Here it is said that the type of
ductive workers in manufacturing
as a result of collective bar¬
1.525
debentures
(Special to The Financial Chronicle)
Again, there are variants of the
basic
74
Lends
With Illinois Mid-Cont.
actions.
restrictive
1957
Peachtree at Ponce de Leon.
of money
tended
and
are
First
The
—
Minus
H.
Sheffield
the econ¬
of
credit
new
Ga.
ATLANTA,
negate some of the central bank's
rise
procedures.
turnover
June 28,
Toronto General Trusts Corp.
General fiduciary business
'
Biscuits
Miriam
circulation — the
business system has generated its
"de¬
a
the
in
velocity
—
19574
(Special to The Financial Chronicle)
has found ways to use the
existing money supply more ef¬
ficiently. And through a large in¬
"Cost-Pushers"
basic
Paymts. to
June 28,
1957
5.6
Toronto
Three With First Southern
omy
The
tion
June 28,
17%
egg?"
i.e., money. Since the central bank
has been unwilling to create all
of the funds demanded,
12 Mos. to
Divs. Paid
1.00
Steel plate
.metals
exceeds
saving. This means the only way
some
borrowers can be satisfied
the
that
idea
willing to save
voluntary
are
we
investment
secutive
Years Cash
turing and vegetable oils
Who Is Winning?
than
more
economy
% Yield
Based on
19
feed
elevators,
Grain
—
about
Extras for
Elevators, Ltd._
Toronto
relationship with indus¬
heavy volume
trial workers. But in this type of
The
discussions
between
the
of Government spending, which
work
the services — it is fre¬ "cost-pushers" and the "demandtends to cushion the reverbera¬
Will undoubtedly con¬
tions coming as a result of in¬ quently impossible to do anything pullers"
by capital investment to improve tinue. To date, they have been
creases and declines in consumer
So
the
price of very illuminating. 'They promise
demand
for different
products. productivity.
services rises and pushes up the to continue to be so.
The fact is, our economy could
It still seems a little early to
general level of consumer prices.
very possibly enjoy at least as
choose
between
the two
basic
rapid a rate of growth in the
"Demand-rullcrs"
theories..
All of, the arguments
"transition" period ahead as it has
Traditional theory has it that aren't in yet. It could be that
over the years since the war.
there is too much money chasing when they are, many of us will
too few goods and, therefore, de¬ still feel the same way we did as
The New Inflation
mand is pulling prices higher. Put children when first confronted by
It is somewhat paradoxical —
another way, the idea is that parts that all-time perplexer,
"Which
maybe even diabolical — that at
of our economy want to borrow came
first, the chicken or the
the same time some are concerned
Another is the very
No. Con¬
—Canadian $ §—
general
In the past, transition periods
wage
pattern, the rises granted
have been punctuated by reces¬
Also, this attempts to explain why
sions and depressions. Declines in production workers in manufac¬
prices rose in 1956. The sharp
the demand for
business bell¬ turing set in motion forces tend¬
increase in demand for credit by
wethers so shocked the investing ing to push up wages of workers
in
the
service
trades.
Garage businessmen was so they could
community as to cause sharp drops
mechanics, television set repair¬ build new factories and office
in capital spending. This time the
bus
drivers,
bartenders, buildings, and buy new machinery
transition promises to be more men,
orderlies, and and equipment—items not nearly
successfully bridged. More mature barbers, hospital
others
all must have their in¬ so adaptable to mass production.
(adult) reaction on the part of
comes adjusted to maintain some
business
leaders is one reason.
of
Quota-
Including
credit
for
demand
Approx.
Cash Divs.
changed in 1955
tremendous increase in
by con¬
sumers
to buy automobiles and
some other durable goods that are
turned out on the assembly line.
the
efficiency. Since there is a
kind
Viewpoint
Coupled With a Dynamic Economy
mass-production methods.
is used to explain
why prices hardly
machinery and equip¬
which sharpens productive
ment
not amenable
goods
for
The reasoning
tion of new
the like are develop¬
motors, and
demand
33
■
-
3.5
.
—
,
Ltd.:"B'L_
bread,
cakes,
26*4—-1.1
0.30
28
con-.
:
fectionery, etc.
Industries Ltd.
John,
Wood,
Holding
mfr.
Subs.
Co.
equipment,
Can.
heaters,
water
&
oil
5.3
38
2.00
15
"A"
U. S.
trade
etc.
Wright-Hargreaves Mines,
Ltd.
Ontario gold
27
0.09
17
1.05
6.7
1.35
producer
Ltd.
Zeller's
b31V2
3.3
Operates chain of specialty stores
AXE
SECURITIES
CORP.
across
♦
Canada
:
Quotations represent June 28, 1957 sale prices or the
prior to that date. Bid and ask quotations are as of
,
.
last sale price
June 28, 1957.
§ Add current Canadian Exchange Rate,
b
Bid.
.
AXE-TEMPLETON
*
GROWTH FUND OF CANADA
^
AXE HOUGHTON FUND A. INC.
^
AXE HOUGHTON FUND B. INC.
^
AXE HOUGHTON STOCK FUND, INC.
SCIENCE
AXE
and
ELECTRONICS
Keystone Fund
of Cana da, Xjd.
CORP.
A
fully managed Canadian Investment Company
seeking long-term CAPITAL GROWTH
and certain
Head Office and Order Room'
400
Benedict
Phone MEdford
Avenue,
1-2272
TAX BENEFITS
under Canadian Laws
Tarrytown/ Nf~ Y.
•
MEdford
1-4612
Prospectus from
your
local
investment
dealer
or
Teletype Tarrytown, N. Y. 1708
•ranch
Officts
730 FIFTH AVENUE
15
New
New
York
Phone:
19,
CO
N.
Y.
5-0250
WILLIAM
York
Phonej
HA
STREET
5,
N.
Y.
2-6962
430
N.
Beverly
Phone:
CAMDEN
Hills,
BR
DR.
Col.
2-8258
Tlie Keystone
50
Company of Boston
Congress /Street, Boston 9, .Massachusetts
Volume
186
Number 5676
.
The Commercial and Financial Chronicle
.
.
(1351)
35
TABLE II
?
-
*
earnings.
However, despite the
improvement
in
earnings
this
year, it is doubted that the divi¬
Railroad Securities
LISTED
dend rate will be increased in the
near
that
future.
a
There is
year-end
a
possibility
stock
dividend
might be declared.
CANADIAN
Western Pacific Railroad
Earnings of the Western Pacific
Railroad Co.
not
only held
of
Western Pacific
began
DIVIDENDS
Approx.
•
Including
Quota-
secutive
12Mos.to
tion
Divs. Paid
Based
June 28, ~ June 28,
1957
/ 1957 ♦
1.65
T
raw
or
-sugar
of.- sugar
ages
•
„
7
&
cane
-
&
syenite
nepheline
glass
and
processes
for
in
use
ceramic trade,
in
0.50
to
fected
and
areas
1.35
<
3.0
revenues
•
*
; Y
1956
1.50
b29
Portland
period.
future
_
6
'
0.3125
i
5.15
6.1
'
hardwood
manufacture
flooring
of
1.00
27%
3.6
9
1.00
14;
7.1
16%
3.6
'
all
9
0.60
plant in Canada
Canadian Dredge & Dock Co.,
Ltd.
General
dredging;
on
construction
8
'
1.00
4.9
20%
Ltd.
6
__r
in
air-conditioning
0.10
b6
1.7
and
Management
of
type
7
0.90
5
0.06
20
4.5
investment
radio,
radar
3.35
—
of °n* *3 a *ear des"ite h*h &
Canada
General Fund
LIMITED
expenses now
of
gross
brought down to
This should
on
net
the
first
charges
and
to
through: (1) investments in the
of
after taxes
sinking
the
in Canada, seeking long-term growth possibili¬
and industries of Canada
months
seven
income
net
A mutual investment company incorporated
ties
funds
equivalent
of
by
means
resources
of diversi¬
fied holdings of Canadian stocks and (2) rein¬
vesting all net earnings at low tax cost.
/
$3.95
a
common
share,
against
share in the like period a
$2.50
a
year
ago.
It
has
that
been
1957
Prospectus
are
shown
this
by
VANCE, SANDERS & COMPANY
111
Devonshire Street
Boston
NEW
6i
YORK
9, Mass.
CHICAGO
Broadway
120
LOS ANGELES
South LaSalle Street
no
to
The
road
any
reach
attributes
the
antici¬
4.7
improvement to rate in¬
creases
authorized in December,
8
repairs;
and
also
1.50
32
3.3
state Commerce Commission and
also to reduction in
expenses, par¬
1956,
makes
mining machinery
Trethewey Mines Ltd.
Silver
producer,
erable
investment
also
has
6
0.15
4.60
consid¬
Canadian
1957
by
the
Inter¬
ticularly of maintenance of way..
The company estimated the recent
portfolio
Quotations represent June 28. 1957 sale prices or the last sale price
prior to that date. Bid and ask quotations are as of June 28, 19*7.
§ Add current
in
and
Exchange Rate,
7%
freight rate increase granted
the
to
Western
became
Bid.
Continued
on
page
36
railroads,
effective
around
which
Sept.
'
1,
Available
probably would produce an addi¬
$770,000 in gross revenues.
on
tional
With
hold-downs
on
some
com¬
1957
ANNUAL
Request
REPORT
—^
modities, the latest increase prob¬
ably will average around 4% for
the Western Pacific.
It
the
the
is
interesting to note that
improvement in earnings for
months
seven
first
Federal
income
amounted
pared
like
on
of
tax
\£e^wj,ll be pleased to send
For the
this
*
year
accruals
$1,641,000 as com¬
only $184,000 in the
months
of
1956.
With
gross
H
wage
1
up
rate
in
1957
as
One William Street
New York
compared
with 1956.
■
•
.
Western
Carl M. Loeb,
Rhoades
Members 7<[ew Tor\ Stoc\ Exchange and
&
Co.
WALL STREET
Private Wire
NEW
YORK 5,
for industrial sites
been
ag¬
on
Name
its line and
this has paid off by obtaining new
N.Y.
System to Branch Offices, Correspondents and
their connections in 90 Cities throughout
has
gressive in attracting new indus¬
try to its territory. Over the past
few years it has acquired property
other
Leading Stoc\ and Commodity Exchanges
42
Pacific
the United States
plants
which
substantially
have
to
gross revenues.
contributed
to
contribute
Address....;
the
growth
in
One of the largest
of the new plants is a large Ford
assembly plant which is expected
materially
to
gross
you
of this annual report
Lehman Brothers
to $29,775,672 from
$28,410,056,
transportation
ex¬
penses
rose
only to $10,692,371
from $10,324,289, despite a higher
request
copy
upon request
to
with
revenues
Copy of Report to Stockholders
available
months
seven
SCUDDER FUND OF CANADA LTD.
achieved
was
despite high tax accruals.
City..
;
West Seventh Street
Gross
year.
expected
or
income
would compare with $3,63.9,254 or
$6.2.9 a share in 1956. This would
be the
only gain of such
revenues
he obtained from
authorized investment dealers
officially
net
probably will be in the neighbor¬
of $5,900,000, or better than
$10 a share before taxes.
This
be
may
R.
xi.
associated
135
was
formerly with Arthur M. Krensky
& Co., Inc. and Francis I. du Pont
pated
Shipbuilding,
Donald
jjuiicuu
become
af¬
coming months.
year
and
1.8
equipment
industrial
For
television
&
HI.
m.
$58,000,000, up from the $53,589,652 actually reported in 1956.
trust
Mfr.
CHICAGO,
.xwwn/,
Sammet has
by-pass
stabilizing influence
proportions to
major carrier
Canadian International
Canadian Marconi Co. Ltd.__
Bear, Stearns Adds
being
as
Ex-
with
(Special to Tins Financial Chronicle)
in
large
refrigeration field from manufac¬
turing to installations.
Investment Trust Ltd
capital-
highly leveraged and can benefit with Bear, Steams & Co.,
rapidly in per share earnings as -South La Salle Street. He
hood
waterways
Canadian Ice Machine Co.
Engaged
a
estimated
&
be
can
amounted
kinds
largest foil converting
repair work
.
this
of
Foils, Ltd.__
Oldest and
8
heavy
operating income.
have
-
Flooring Co. Ltd. "B"
Specializes in
Canada
-
common can be regarded
the
larger portion
a
income in
cement
sS
behind the carrier and in the
are
5.2
Ontario gold producer
Canada
a
comparable
This would seem to
indicate that
net
i—
Stock
months of this
seven
over
revenues
j
Coast
this
the
to
Sldto
ization, with only 578,874 common
shares outstanding and no preferred stock. Consequently, the
despite
;
etc.
—u_
However,
road took
also
Spring Street, members
Pacific
sub¬
expenses
improve
the
He was formerly
Sa'™Cl B" Franklia & Co
^X~ road is
1eS
ttie
connected
u.nde.r Spod control, this growth change.
expenditures by $1,107,000
a rise of $1,365,000 in
gross
way
0.04
Ontario
Bo'xbeards, corrugating' materials,
b
opportunity
In the first
Campbell Red Lake Mines
♦
in^
of
expenses
become
Marache, Dofflemyre & Co.,
634 South
revenues expand. Currently, the
on a current dividend rate
?
r
with
with
As
ANGELES, Calif.—Donald
Wilson has
year, the road cut maintenance of
5
9
Ltd.
+
stated,
LOS
M.
fur-
possibilities.
Dofflemyre
(Special to the financial chronicle)
population
Pacific
5.9
3V2
Bathurst Power & Paper Co.,
Castle
fhn
r
and
Western
expansion
,
American Nepheline Ltd.____'
Milies
TnffiJ PnnfSJi +lpn
pro¬
grades & pack- r—i
*:,■!
more
Cpntrni
Uoods
increased
give
sections which were liable to rock
slides.
Acadia Atlantic Sugar
Refineries Ltd.
50
5
nfifon
in 1956.
making repairs the
5.2
31%
vfti
'd
r
stantially
1957
Co.,
9
aeo
nnH
served
Newsprint -.and allied. nroducts
duces
ther
^V1t^Gtter
1mnrnwmTnfS p
,mv'1
SSvy
on
Paymts. to
June 28, -
-Canadian $ §—
Refines
carriers
tirnnpls*
nnriit^
% Yield
Extras for
Ltd..
which
vears
nm
h^?TiSk
No. Con-
Years Cash
nf
dustrialization
previously
some
md
infludoH
ri«ht
Cash Divs.
Paper
the
coming months. The
territory served is growing in in-
nation's
SSS
an
firionr
5 to 10 Years
&
the
briL nZrr'Eb S,m J°
Have Been Paid From
Power
of
in the district served.
CONSECUTIVE CASH
Abitibi
better than those
up
majority
railroads, but also of
On Which
-
the
far this year have
so
With Marache
earnings in
The Commercial and Financial Chronicle...
36
that we will have to take
be popular, but, if we are
our ability to serve
the public generally, they must be
taken and made effective. In this
we will need your
understanding
Passengei Deficit Is No Phantom
facilities
airports and new
competitors.
our
and
trucks
with
well
waterways,
with other railroads with
as
preserve,
lief
available financial resource
must be spent to improve freight
Another prospect which must
service and meet the competitive
be considered in our assessment of
this
every
travel of the future is
ever increasing wage
the railroads. The latest
passenger
the
that of
of
bill
with
railroad unions were
various
the
agreements
increase
wage
1957. They
signed during 1956 and
provide
for
creases
over
periodic
period
a
yet
service, we will be
of "killing the
passenger
of freight
It
York
increased
that
means
that
the
New
Central is faced with an
Wage
alone
bill in its passenger services
of almost
$14,000,000 per
in the immediate future. •
year
j The question rpigh^ well, be^
asked
"Why
don't
with
situation
you
meet 'the'
equip¬
improved
ment and service?" For the
of
backbone
ness
the
ness
railroad-
and
is
busi¬
hauling of freight. In
was only by subsi¬
out of the earnings from
the
past,
dizing
railroad
the
it
freight that kept passenger serv¬
ice alive. Now the
becoming
so
competition is
intense
for freight,
of
end
the
hope
for
are
difficult it will be for
As
Ltd.
Oil
ates
the
for
dous
Ontario
vital
problem, both for the rail¬
must adjust
we
services
tions.
of
to
This
little
these
consolidation
No Idle
our passenger
This
changing condi¬
main
time when
trains
line
efficiency, and
adjust
the
all
public
willing to
the
constant effort to
a
services
our
really
what
to
and
neeeds
passed.
is gin is
But
ness
in
costs
been
to
that
thin, that
a
a
support
passen¬
has
time
profit mar¬
slight decline
static
busi¬
rising
into
earned
be
this
year.
not
enough
The
red
one
turn
to
Central
has
of
net
cent
railroad
from
has
even
red.
not
income
a
time of constantly
can
—
black
New
Our present
so
business—or
in
for. Many of the
pay
services.
operations
The railroad operation
earned
even
its
fixed
charges. Only other income has
kept us in the black. In the 12
months
The
Toronto
change lists
a
Stock
Ex¬
earned
larger number
In Canada
are
the most
other two stock
over
shares listed
and traded?
finance
we
our
investment of
on
How can
improvement pro¬
all of which are essential
to
the
public interest, on such
earnings? And now the Interstate
$44,000,000,000
$25,000,000,000
are
Commission
Commerce
than
more
nied
shares
the
us
freight
right
provide
Every variety of
such programs.
I say in all
company
rapidly expand¬
cold
de¬
our
o
adequate
economic
has
to price
high enough
service
of manufacturing companies.
in Canada's
the
whole
31,
a
grams,
of listed shares
manufacturing
return
a
as
the midst of prosperity.
exchanges
in Canada.
Of the
Aug.
on
industry
only 3.75%—depression rations in
of industrial shares than any
Where
ended
railroad
to
earnings
honesty
for
the
that
ing manufacturing industry
all of the New York Central
is represented
ices, and therefore all of the public
in the 243
companies in this
A
complimentary
our
group.
served
to
,
I
Monthly Bulletin show¬
ing essential trading data
free
on
are
on
Scottish
request.
we
of the
industrial shares in Canada
as
of
trust
.
6
1.00
8
0.55
3.8
26
management
East Sullivan Mines, Ltd
Produces copper, zinc, silver and
15.1
3.65
pyrite
Empire Life Insurance Co.__
Operates
7
Ltd.
Manufactures,
Bakeries
of
One
Ltd
largest
Canada's
1.3
.
*"
,,
"7 %
H3.6
8
0.10
b2.75
7
0.325
b5%
9
0.20
5.30
3.3
5
0.30
4.70
6.4
8
1.00
al9J/2
5.1
5
0.60
bl2%
4.4
7
0.70
al2
5.8
6
1.00
12
5
1.30
56%
9
0.05
7
0.75
7
0.30
dis¬
processes and
tributes hardwood flooring
General
60
*
Erie Flooring & Wood Prod- ";;.
ucts
0.75
life insurance co.
as
5.8
inde¬
pendent bakery operations. Makes
bread, cakes, biscuits and confectlonery
Petroleums
General
of
Can¬
ada Ltd. "Ord." & Class"A"
Oil
well
drilling contractors
Giant Yellowknife Gold
Gold
N.
producer
W.
Yellowknife
area,
T.
Great West
Saddlery Co., Ltd.
Wholesale
distributor
of
general
and riding goods
store mdse.,
Co. Ltd. "B"
Hughes-Owens
Mfg. & retailer of drafting equip,
scientific instruments &
artists'
supplies
International Bronze Powders
Ltd.
Holding
bronze
Subs,
co.
and
manufacture
aluminum powders
Interprovincial Building
Credits, Ltd.
Interprovincial Pipe Line Co.
&
Owns
line
8.3
.
improvements financing
Home
operates crude
Rod
Water,
oil
Superior,
Wis.
and
Sarnia,
2.3
pipe¬
Alta.
from
to
Ont.
1,770 miles
La Luz Mines Ltd
Nicaragua
1.4
3.55
gold producer
Lambert, Alfred, Inc. "B"
5.0
bl5
Manufacturers, wholesalers and
retailers
of
footwear goods
London Canadian Investment
Corp.
Investment
b8!4
trust, management
3.6
^
type
St.
Lower
Lawrence
Power
Co.
4.5
18^2
0.83
7
-
Quebec electric utility
♦
Quotations represent June 28, 1957 sale prices or the
prior to that date. Bid and ask quotations are as
§ Add current Canadian Exchange Rate.
•»
b
Asked,
..
,
.
,
,
last sale price
of June 28, 1957.
,
,
A
Bid.
serv¬
bound
well
For
Banks, Brokers and Dealers
the
HUDSON'S BAY
OIL AND GAS COMPANY LIMITED
members
managers and
Shares (w.i.)
regulatory authorities bear
to
adjust
we
passenger
operate
can
at
profit and continue
terprise, which is the
dation
of
what
CANADA
is
Rights
service so that
a
reasonable
EXCHANGE
•
6.3
.
type
deficit
control.
234 BAY STREET
TORONTO
14
'r
heavy responsibility to see to it
a
THE TORONTO STOCK
0.95
Invest- -A
that the necessary action is taken
Founded 1852
8
ments Ltd.
Investment
stand-by service, to which public
officials are frequently subjected.
largest market for
3.9
passenger
appreciate only too
But
The
the
1.03
foundation
ladies'
political
and
community
pres¬
sures, frequently from those who
use a railroad very little or
as a
all issues listed will be sent
to you
if
is not brought under
of
copy
by the Central,
suffer
7.0
that
indicate
facts
0.04
*—
Mines Ltd.
staggering losses from
ger
9
b6%
our
The
have
afford
0.50
4.1
&
*
Dominion
the freight side of our
could
business
and services to achieve maximum
5
3.65
oper¬
Ontario
garments
$2 billion busi¬
a
might
0.15
gold producer
Manufactures
Talk
idle talk.
not
There
ness.
trains and services,
of
is
York Central is
discontinuance
means
used
of
maintenance
the
to
6
Dominion Corset Co. Ltd
competitive position and our abil¬
ity to provide adequate freight
service to all the public.
roads and all others. It is obvious
that
19
Delnite Mines Ltd
expenditures for
improvements that are absolutely
history and the prospects for the
future. These facts pose a tremen¬
1957
1957♦
Quebec
pre¬
which represents
decision¬
subs,
Co. through
bakeries in
Holding
program budgeted for 1957 alone
will
cost
$250,000,000 — all
of
I have endeav¬
briefly the past
June 28,
properties in Western Canada,
Canada Ltd
does
cover
1957
on
Paymts. to
June 28,
Consolidated Bakeries of
the steps that are necessary
process,
to
tion
28,
also holding company
as
basis
a
making
ored
Based
Commonwealth Petroleum
to take
us
June
Quota-
—Canadian $ §—
services. The longer we
plagued by obsolete branch
and local operations, the more
line
Must Itc-Adjust
12Mos.to
Divs. Paid
passenger
municipal governments.
secutive
public interest, the protection of
which is in your hands. In my
big as the New will
have-difficulty affording the
not have the,
capital
expenditures now pro¬
financial resources available to it
grammed to improve its freight
to.go ^into fu)l competition witty service. As I have just mentioned,
the taxing power of federal, state
our
freight service improvement
even
Central
York
Extras for
Years Cash
to im¬
prove or preserve our main line
operations, which serve the ma¬
comes
down simply to this,
jority of the public involved.
with a deficit passenger busi¬
Secondly,
if
present
trends
of substantial proportions, a
continue, the New York Central
New
alone to re-equip
its passenger service fleet would
<£ost over $300,000,000. With our
previous results, after spending
over
$168,000,000 for passenger
Service equipment and losing over
$400,000,000 from this service in
the past ten years, would you ex¬
pect us to have available another
$300,000,000 to invest in this serv¬
ice? As is generally known, the
in
serving a hard core of main line
goose
Central
York
with
coincided
% Yield
No. Con-
the
mean
in imminent danger
May and September of next year.
This
business interest
our
problem
a
that lays the golden
these agreements, we will have a egg." If that happens, a railroad
such
as
the
Central may have
further wage increase on Novem¬
ber 1st, and another on November great difficulty in continuing as a
1, 1953. Depending on the cost of self-supporting company in the
living index, we may have addi¬ free enterprise system—a basic of
tional increases this month, and in our way of life.
to
that
Approx.
Including
opinion, there is no question that
$250,000,000 improvement this is true. The test of the propo¬
budget in 1957 aimed at making sition lies in what may be ex¬
our
freight
service better and pected to happen if we are pre¬
more
efficient. If this kind
of vented from taking these neces¬
thing is not done, and the money sary actions.
siphoned off for supporting defi¬
First of all, denial of relief will
have
a
Cash Divs.
situation. On the Central alone, we
wage in¬
of three cit
and their full effect is
be felt. Under the terms
years,
Coupled With
Viewpoint
Dynamic Economy
At the outset I indicated my be¬
little passenger service, that
very
Wage-Bill Prospects
35
page
Canada: A Conservative
cooperation.
and
as
from
not
may
to
ways,
Continued
steps
11
Continued from page
for
Thursday, September 26,1957,
(1352)
as
free
a
very
best
en¬
Bought
foun¬
•
Sold
•
Quoted
the
for
public interest.
E-3800
Two With Baker Simonds
Model, Roland & Stone
Members New York Slock
(Special to The Financial Chronicle)
DETROIT,
Mich.
—
Claire
Y.
.
Landis
Jr.
and
have
Baker,
John
become
Simonds
O.
associated
&
Building, members of
,
Stock Exchange.
Williamson,
Co.,
120
BROADWAY, NEW YORK 5
with
Telephone: WOrth 4-5300
Buhl
20-24
the Detroit
•
'
:
Exchange
•
JTclelype: NYl-2525
Moorgate, London, E.C. 2, England
iVolume 186
Number 5676
.
.
.
The Commercial and Financial Chronicle
(1353)
Canada: A Conservative
Coupled With a
Viewpoint
Dynamic Economy
Cash Divs.
Approx.
Including
% Yield
No. Con-
Extras for
secutive
12 Mos.to
Years Cash
Divs. Paid
June 28,
1957
Quotation
June 28,
Based
on
Paymts. to
June 28,
*
19574
1957
Mines, Ltd
Ontario
9
0.15
2.15
7.0
gold producer
MacLeod-Cockshutt Gold
9
0.10
1.07
9.3
5
0.05
1.60
3.1
gold producer
Malartic Gold Fields Ltd.___
Gold
producer,
Quebec
Maxwell Ltd.
Manufactures
dryers,
lawn
choppers
Milton
Brick
Mak.es first
8
washing
machines,
mowers
and
0.50
6%
7.7
2.40
4.2
food
Co., Ltd
8
0.10
quality face brick
Mining Corp. of Canada, Ltd.
9
1.10
16%
6.7
company
Newfoundland Light & Pow.
1
Co.. Ltd
9
1.50
57
2.6
Operating public utility
Nor-Acme Gold Mines Ltd.—
Receives royalty from
Co.
through
lease
6
0.015
0.24
6.3
Howe Sound
of
company
properties in Manitoba
Ontario Jockey Club Ltd
•"
-
Operates-several horse
tracks <la Ontario
•
6
0.10
1.95
5.1
race
& operates oil
in- Western
5
0.50'.
5
10.0
6
——
producer,
0.125
2.45
5.1
Washington
7
1.40
121/2
9
0.15
b3.75
11.2
silver, copper,
zinc, and pyrites In Quebec
Quinte Milk Prod., Ltd
4.0
of milk products
Paper Co., Ltd. "B"
8
ing
0.40
bl8
Justina
V.
Taylor
banking
firm
French
diplomat
lover whose main
was
to create
Betty
LOS.
ANGELES, Calif.—Samuel
H. Dinovitz has been added to the
staff of Jonathan &
Co., 6399 Wil-
of
shire
Boulevard.
With Paine, Webber
(Special to The Financial Chronicle)
LOS
and
ANGELES, Calif.—Warren
Rohrer
ambition
is
affiliated
now
C.
previously with Dempsey-Tegeler
&
Co.
R. a. Daly & Company
Limited
Pollock,
of
Harris
Members
The Investment Dealers' Association
The Toronto Stock
of Canada
Exchange
I-'I/ft
UNDERWRITERS
J.
Whelen, of C. F.
Childs and Co., Inc., and Elaine
C. Haggerty, of Phelps, Fenn &
Co.t have been elected members
the
Board «of
for
two
Governors
est
Canadian
and
AND
government,
corporation
-: |
DEALERS
L
municipal
securities
to
Continuing
Brehm,
Madlyn Hos-
Orders executed
years.
retiring President;
kins, of Braun, Bosworth & Co.,
Inc.; and Estelle Hanvey, of Wood,
Private Wires
44
KING
Struthers & Co.
Group
0.75
157/s
4.7
Offers $10 Million
1.30
20%
6.4
Oakland School Bonds
7
0.15
$
t-
STREET
9
0.22
2.80
7.9
5
0.28
4.00
7.0
vacuum
cleaners, floor pol¬
heaters, furnaces, etc.
all
on
Exchanges
9
1.40
80%
1.7
9
0.50
40%
1.2
Production,
storage, transmission
distribution of natural gas
3%% and 1% bonds due
1958-1982. On award the 1% bonds
7
1.00
b22
6.8
Windsor Hotel Ltd
6
1.00
44
2.3
7
0.30
operates Windsor Hotel
In Montreal
Wood Alexander Ltd
(Uptown)
Direct Private
3.2
The
were
balance
of
not reof-
the
bonds
0.06
0.62
9.7
X Inactive issue. No Exchange trading,
Bid.
b
•
Sarnia
•
Orillia
Strauss, Turnbull & Co., London, England
Vanden Broeck & Co., N. Y. C.
Government, Municipal
and
First
group
Boston
Corporation Securities
includes—
•
Corporation;
Co.; The Northern
Trust Company; Merrill
Lynch,
Pierce, Fenner & Beane; Eastman
Dillon, Union Securities & Co.;
C. J. Devine &
Cochran,Murray £ Hay
Member
& Co.; J. Barth &
Co.;
Clark, Dodge & Co.; F. S. Smithers &
Co.; Andrews & Wells, Inc.
Incorporated;
Company; Fidelity
Company, Newark;
E. F. Hutton &
Union
♦ Quotations
represent June 28, 1957 sale prices or the last sale price
prior to that date. Bid and ask quotations are as of June
28, 1957.
S Add. current Canadian Exchange Rate.
L.
WEST
Limited
dollar price of 100 for the
a
maturity.
The offering
Roosevelt & Cross
7
dredging operation In Yukon
ST.
Cochran,Murray £ Co.
1980
Yukon Consolidated Gold
Corp. Ltd.
Toronto
Wires to
Alfred
Laidlaw
3.65
Operates wholesale hardware
business
JAMES
MONTREAL
reoffering was scaled from a
yield of 2.50% for the 1958 matur¬
The
Operates as trust company
ST.
MArquette 8038
on
,
Victoria & Grey Trust Co
414
EMpire 4-4441
3.40%,
Holding,
investment, promotion,
exploration and development co.
WEST
TORONTO
Bank of
was
high
Sept. 24 for $10,000,000
due 1981 and 1.982
ity to
Ventures Ltd.
New York and, all Branches
Oakland Unified School District,
Alameda County, Calif. 5%,
3V4%,
fered.
Union Gas Co. of Canada, Ltd.
to
A group headed
by
America N.T. & S.A.
on
Trust
of the
Toronto Stock
Dominion Bank
Hamilton
jr
Exchange
Bldg., Toronto, Telephone EM. 3-9161
Kitchener
London
Brown Brothers Harriman &
Co.;
Gregory & Sons; Taylor and Com¬
pany; Stone & Youngberg; A. G.
Edwards & Sons; Ginther & Com¬
pany.
Lawson, Levy & Williams^H. E.
Co.; Irving Lundborg &
Co.; Shuman, Agnew & Co.; Hill
Richards & Co.; Kalman & Com¬
pany, Inc.; Juran & Moody, Inc.;
Van Alstyne, Noel &
Co.; Hayden,
Work &
BELL, GOUINLOCK & COMPANY
Brawley, Cathers & Company
Miller & Co.
INCORPORATED
Members
Hooker &
Fay; Brush, Slocomb
Inc.; Stern, Lauer & Co.;
Magnus & Company; The Weil,
Roth & Irving Co.; C. N. White &
Co.; Fred D. Blake & Co.
&
64 Wall Street
NEW YORK
Investment Dealers' Association of Canada
Toronto Stock Exchange
Co.
Joins Revel Miller
CANADIAN INVESTMENT
CANADIAN
(Special to The Financial Chronicle)
LOS
SECURITIES
L.
ANGELES, Calif.—Gerald
Isaacs
Revel
has
joined
Miller
Spring
Street,
the
staff
of
GOVERNMENT-MUNICIPAL-CORPORATION
&
Co., 650 South
members of the
SECURITIES
Pacific Coast Stock Exchange.
AFFILIATES
SELL, GOUINLOCK & CO.
LEGGAT, BELL, GOUINLOCK
LIMITED
LIMITED
Established 1920
25 King Street, West
Toronto
Members Montreal Stock
Montreal
Exchange
Lamson Bros. Admit
'
\
CHICAGO, 111.—On Oct. 1 Ann
Wade Morrissey will be admitted
to
limited
partnership in Lamson
Co., 141 West Jackson
Boulevard, members of the New
Bros.
York
&
and
changes.
Midwest
Stock
Ex¬
with
library of good Paine, Webber, Jackson & Curtis,
bindings. Grolier 626 South Spring Street. He was
a
today publishes "The Encyclopedia
of Western New York.
pany
Staff
Americana," "The Book of Knowl¬
Trust and Savings Bank; and Jane
Nelson Brownell, of Chas. E. Weigold & Co.,,Inq., has .been elected
6
Quebec gold producer
Gold
to
bopks
(Special to The Financial Chronicle)
Bull-
bidder
Switson Industries Ltd
Owns and
investment
books with fine
7
lombia, South America
and
Vice-
2.2
Co¬
Sullivan Consolidated Mines,
Ltd.
gas
Jonathan Adds
was
partner in
a
urer, succeed¬
*
South American Gold &
Platinum Co.
ishers,
Rockefeller is
and
Simon, H. & Sons Ltd
Mfgfr.
the
it
elected Treas¬
Newsprint and allied products
in
Mr.
book
Bank of America
St. Lawrence Corporation
Ltd.
operation,
directors
by Edward J. McCabe,
Jr., President.
century
winkel, of
Tripp & Co.,
Inc., has been
related products
dredging
of
The Grolier
Society, founded in
Boston in 1895, took its name from
Jean Grolier de
Servieres, 16th
President, suc¬
ceeding Jus¬
tina V. Taylor;
High-grade bond writing paper &
Gold
board
Society Inc., it
*
governors will be Emma B.
Produces fold,
Cigar manufacturer
Press-
elected
the
other reference
:
announced
Dominick & Dominick.
of
Josephine
M.
Rodd, of Gold¬
man, Sachs &
Co., has been
serve
Ltd.
Rolland
W.
of
Quemont Mining Corporation
Wide variety
Brehm,
Lillian
drilling rigs
Canada
Pend Oreille Mines & Metals
Co.
Lead-zinc
State
B.
to
of The Grolier
and
~
secretary,
succeeding
Ola
M.
Smith, of The Marine Trust Com¬
,
Parker Drilling Co. of Canada
Ltd.-—.
Owns
President of The Municipal Bond
Women's Club of New
York, suc¬
Louise
Holding, exploration & financing
-
elected
Justina V. Taylor, of The Chase
Manhattan Bank, has been elected
R.
edge"
here and abroad.
Avery Rockefeller, Jr., has been
prich & Co.
Mines, Ltd.
Ontario
Avery Rockefeller Director
ceeding Emma
—Canadian $ §—
Macassa
Justina Taylor Pres.
Mun. Bond Women
37
canadian
bank of commerce buildin3
EMPIRE
3-5821
TORONTO
Chronicle
The Commercial and Financial
Thursday, September 26,. 1957
...
(1354)
38
change within the past year. Rates
Who, then, is responsible
place a curb on in¬
for the underlying inflation¬
flationary trends.1 It scared
some
of us out of our wits, ary situation which makes
and it was not very long be¬ possible any gouging that is
fore the authorities reversed going on by either labor or
themselves
and
since have employers and which the Re¬
taken to
Continued from first page
We See It
:4s
paid on savings have been raised
by many banks> and advertising
and promotion have been concen¬
trated in that direction.
The re¬
sults
1/1 Oth of that amount at the
serve
authorities
are
now
outbreak of the war. Cur¬ publicly stated that the antisome degree of psychological
again undertaking to restrain?
mflationary
procedures
of
rency
outside
the
banks
had
relief.
The answer is:
"Practically
also risen from about $6 bil¬ that year were a mistake. And
all of us." The question is
how
many
of
the
American
lion in 1939 to more than $26
Early New Deal Tactics
what are we now prepared to
people were ready to disagree
The real causes of the cur¬ billion in 1945.
do about it.
with that statement?
rent situation are not far to
Prices, at least as' reported,
thus
—and
able
is
find
to
they leave very few
without some measure of re¬
seek and
New Deal took
that when the
early in 1933, the wise¬
acres of that day found the
basic trouble to be the low
price level. The first and most
important of all tasks, there¬
fore, was to raise prices, ac¬
cording to this line of reason¬
relatively
—
sponsibility. It will be recalled
over
drastically
speaking — by
had not risen very
detain
condition
should have been, ob¬
to all. But we emerged
basic
inflationary
An
was, or
vious
from the
with
war
a
morbid
Likewise, certain recent trends
altering loan
portfolios
toward
will have to be extended into the
future.
In
loans
Banking in
vast
expansion
of
will
case
decade.
that
term
a
believe; however,
I
will
loans
very
banks
with¬
tal
be
effectively than was
throughout much of the
part
continue
can
to
definite place in bank
portfolios—indeed,
they
indispensable
means' by
economy
our
would have been impossible
it
more
have
Expanding Economy
more
particular,
to limit the use of term
nece.sary
to make much
of the money
community
undoubtedly contributed the
lion's share.
3
The Role of
the
here—but
us
deposits dur¬
which expanding savings accounts
have
the
need
number of factors which
already evident in a rec¬
ing the first half of this year—a
rise of more than $3 billion, to
of 1940, thanks to a
the end
not
Continued from page
are
ord increase in time
are
an
which
contribute to the capi¬
cf
development
the
nation.
The
problem is to prevent the
which
out it. Yet we must face the fact
term loan from getting out of bal¬
already exists—to get along with
that special circumstances existed
ance
in
bank
portfolios.
While
lower cash
balances, to expand
in
the
late
'40s
and
early '50s banks were aggressively seeking
ing. Over and over and over We had developed a depres¬ acceptance financing, to increase that made such a
large advance in loans, they tended to lengthen
again, this doctrine was sion complex as a result of the dealings in Federal funds, among loans possible. Our banks came terms and take on a heavier vol¬
other things. But we are coming
out
of
World
War
II in a highly ume of such credits than will be
dreadful
preached by Franklin Roose¬
experience of the to the end of the road in the de¬
velt, who wrecked the Lon¬ 1929 depression. The public, velopment of expedients such as flexible position. They held huge wise in the future. We must not
don Economic Conference be¬ or much of it, had a sort of these. Since 1949 the annual ve¬ quantities of government securi¬ forget that the loan! function of
locity,
or
rate of turnover, of ties, and loan ratios were abnor¬ banks today is a many-sided af¬
cause it did not seem to him
vague idea about what had bank
The
short-term
needs
of
deposits has increased al¬ mally low. It was the ability to fair.
to
give
promise of raising happened to our financial most 45%, and the advance has sell government securities and business, the demands of con¬
world prices, or even our own structure during the war, but been particularly rapid in the past raise the ratio of loans to deposits sumers for instalment credit, and
that was a prime factor in en¬
in many areas the need of the
prices. Several types of action instead of insisting that some¬ three years. Velocity cannot con¬
abling banks in recent years' to
tinue to increase at the same pace
community for mortgage funds—
were devised to bring prices
thing rational be done to cor¬ in the future. If our economy is to expand loans so greatly.
none of these can be slighted
by
back to former levels. The rect it, the politicians—and it
Today
loans
for
all
banks banks. If they are all to be met
grow, banks will need to increase
key tactic was government must be said apparently most their deposits, and the monetary amount to about - 50% of gross adequately, and in proper bal¬
the
Not
obtained
funds
of
spending
from
commercial banks.
of the
to
people—somehow came
hair
the conclusion that a
prior to the outbreak of World
Limited Liquidation
War II, although the banks
were pretty well loaded with
The
Treasury
liquidated
government obligations, and some of the deposits it had
the public taught to think of built
up as a safety measure
this modern type of greenduring the war an(f
doing.,
backism as permissible - and so
redeemed
a
substantial
desirable
even
in
cir¬ amount of bank held debt, but
some
cumstances.
«
authorities will soon have to
the
Then
otherwise there
came
the
war
which
of
uidation
governments
by
commercial banks which
has become the uni¬
versal custom, financed
the
through inflation.'That is to
say, huge amounts of fundswere
simply created at the
banks and paid out to the
Government which in turn, of
make
as
was,
little liq¬
was
were
promptly called upon to
large and increasing
reserves
Taking
the
that deposits
look
long
a
into
future, I would say
of all commercial banks 10 years
might be in the neighbor¬
hence
hood of $275
about
with
billion, as compared
$200 billion at last
Total deposits of $275
be necessary if the
nation's gross product is to reach
a
level of $575 billion by 1967—
year-end.
billion would
a
level which involves an average
rate of
growth of only 3% a year.
certainly ought to be able to
achieve
such
a
growth rate* if
We
would
4% rate over the
things are managed well. It
with
compare
a
past decade.
bil¬
in commercial bank deposits
further
A
of
increase
$75
loans to business and individ¬
lion
uals. Far from
hi the next 10 years appears
control
under
known
is
what
being brought
or
reduced,
make
available which will
enable them to do so.
made
was
use
a
great deal of headway of the dog that did the biting
in raising prices should be
applied. And it was.
a
active
collapse such as had
occurred after World War I.
fear of
very
sizable.
ured
in
Yet .if it is
what
of
terms
to be
meas¬
be
may
private required for credit and other pur¬
course, promptly turned them money supply rose upwards poses, the total looks a lot less
over to the rank and file
in of $25 billion in the half dec¬ large. Moreover, bank supervisors
must face up to the question as to
return for goods and services. ade following 1he war! Evi¬
whether
these
deposits will be
Federal
The
anism
Reserve
mech¬
carefully and sed¬
ulously employed to facili¬
tate
this
whole process
of
financing the war. By the end
was
of hostilities the Federal Re¬
serve
banks themselves owned
far
not
the
from
$25
billion
of
obligations of the Federal
Government,
the
and
mercial banks had
com¬
more
than
as
dently government, the Fed¬
eral Reseirve authorities and,
suspect, most of the rest
we
of
convinced
had become
us
to pour
specially created
the
public-good New Deal
doctrine, though most of the
Rooseveltian brain
many.
the
course,,
there
was
these banking insti¬
tutions could have acquired
all these bonds except by cre¬
no
way
In
had
trust
by that time vanished
from
scene.
Then
the
the
most efficient use of both
and
out into the hands of
came
the Korean War.
following three years
Federal
banks
Reserve
I
individuals.
-
.
at each of these
First,
let's
potential for growth
want to look
matters
separately.
consider the
of
business
loans
with
increase
an
in5 de¬
posits of the size I have indicated.
Let me start by saying that' if
banks attempted to maintain their
present ratio of loans to deposits,
loans
and
mortgages a decade
hence
could
rise to*, a total of
about
$138* billion,' asr compared
with $93 billion today.
That would
added another $5 billion to
represent an increase of $45 bil¬
ating deposits for that pur¬ their holdings of government lion
again a substantial sum
pose. Thus it came about that obligations, and they still hold when taken by itself. But this in¬
crease
of
a
$45 billion in loans and
by the time the war was over,
large part of that increase!
ordinary demand deposits in The commercial banks added mortgages in the next 10* years
would compare with a< rise of $53
private hands had risen to heavily to their loans. They billion in the past decade.
In
around $75 billion; they had are not far from $30 billion
percentage terms,, loans and mort¬
totaled only around $27 bil¬ larger now than they were in gages in the 1957-67 period would
lion when the war broke out. 1950. Privately held money grow by about 50%; whereas the
growth .from 1947 to 1957 was
51%. But
been
smaller
the
know,
you
:'ewer
funds in loans and mortgages and
for
this
class
the
loan/deposit
at
this stage
prefer to
see
loan/deposit ratios not quite so
high., Indeed, I suspect it is the
Many
bankers
probably
would
hope of
deposits
stand¬ supply
ing to the credit of the Fed¬
the Fed¬
eral Government fit
eral
Reserve
commercial
banks
banks
and
the
together
had reached about. $25 bil]^n
as
compared with less than
was up
about $40 bil¬
lion bv th° end of
other
1955. An¬
$3 billion has since been
add^d.
Some
faltering
steps
had been taken earlier, but it
was
in
1953 th«t
termined
effort
a
rno^p
was
de¬
under¬
140%-..
Here in
the
of
be
nutshell is
serious
most
faced
a
by
banks
one
problems to
in
the
next
rise in bank
decade has
been a remarkable performance.
It is not too much to say that the
Admittedly
loans'-
over
the
the
past
ferer
loan
that
the
be
may
suf¬
thereby.
this regard there
In
is another
matter that I should like to men¬
tion
briefly: namely,, how we —
bank
supervisors — should
bank
assets
in
terms
of
and
liquidity. There is a tendency, I
believe, to hold on to certain con¬
cepts which may now be out¬
moded in this regard.
For many
years " a
standard
measure
of
number of banks that
liquidity has simply been the pro¬
might decline some¬
portion of a bank's assets which
a
what
in
think
it
the
has
Yet
future.;
near
would
be
I
mistake, to
a
the
that
assume
reached'
banking system
final limit in the
a
expansion of loans relative to
deposits—a limit that it may .'not
again surpass at some future date:
For the plain fact is that loan to
deposit ratios in the next decade
may
have to rise further if banks
are
to
meet
will
that
in
demands
the, loan
,
Who
would
of
one
ex¬
Bank,
is
adequate.
Slates
\
..
,
If this isc the situation that will
confront
what can be
done about it?
I suggest that we
should be thinking of policies that
will lead to action along five prin¬
us,
cipal lines.
First, savings deposits should be
tent
to the maximum
possible.
to be
Thirdly,
should
prof olios
loan
more
ex¬
r*
'
Secondly,
need
will
1
liquid.
made unir
form.
banks
build up more
will
And
need
to
in
the
structure
and
organization
of
banking should be encouraged to
permit the most effective service
and
the most
changes
efficient'
of
use
ex¬
Let
me
dwell
on
very
serve
authorities
made
it
must
Federal Re¬
have
commercial
expan¬
bank
loans
rely less on deposit, creation
on savings.
Throughout
more
much of the postwar
mercial
banks
did
period
not
vigorously for savings.
tion,
already
clear that- future
of
sion
each of these
briefly.
points
however,
has
com¬
compete
This situa¬
begun
to
for
re¬
Reserve
any less liquid than a
obligation of the United
selling
the
and
scarce
It
was
dur¬
'49s°"when loans
supply
of
government bonds was expanding,
that government obligations came
to be regarded as a major source
of liquidity. They did not hold a
similar place in bank portfolios
of
the -'20s
when
loan/deposit
ratios were high.. Today the pen¬
dulum
has
again
swing
back;
one
called
are
Of their
extension
upon
to expand
major functions—the
of
mUst
bulk
bank
assets.
credit
much
In
—
and
larger
these
loans
among
circum¬
liquidity is related to not
only -the securities a bank holds,
but also to the quality, maturities
and underlying characteristics of
its loan portfolio.
I
fer
isting funds.
eligible
Federal
ing the '30s and
were
loan
great corporations,
deep discount?-
a
under
30-day
a
Government,, now
stances
capital.
finally,.,
at
banks
requirements
reserve
be lowered and
Fourthly,
our
advance of only a loan which is
the next decade,! discount at the'
36-ycai!
encouraged
deny! that
current, conditions
con-, to
the*continuation-of
and
Some
supervisors*
today
undoubtedly
employ ^this measuring rod.
Yet
I wonder if such a concept, and
others like it, are either adequate
or accurate when applied to con¬
ditions as' they exist today.
isting ratios, clearly would be in¬
indeed
>1 securities.
An
in
of cash
the form
marketable
probability
loans
on
in
it' holds
all
in
them.
front
rand
decade.
term
the
loan volume
—
Meanwhile,
of funds will be required
use
from bank managements, and
view
to 44%.
amount
ratio how
and
sight
the
that more fore¬
deliberate planning of
suspect
I
ance,
as
country
relatively
'invest
banks
based
wnetner the present
of banking will permit
—
has
it
centers
50%)
to prevent that structure
postwar depression deposits to be mobilized for the
dreaded
money
various
the
states
way as to make it pos¬
sible for them to be utilized most
that the way
was
among
a
been
has
ratio
recent
considerably higher—about 60% —
while
for banks
in other main
in
such
the
course
banks and districts of your
eiiecuveiy
three and one-half times that
Now, of
distributed
deposits, as compared with a ratio
of only 25% some 10 years ago.
For
New
York
City
banks
of
am
not
prepared
here to of¬
precise formula for pleasur¬
ing liquidity under conditions as
they exist today, and as they will
a
continue
to
exist
tomorrow.
*
I
would.-however, urge yeu to resthdy
this
problem, and adapt
yourselves to the changing times.
Certainly you should not retain
mechanical
concepts which are
now obsolete, and
which may in
themselves
inhibit
banks
from
carrying out the dull job of credit
Number 5676
186
Volume
will
which
extension
be
.
.
.
The Commercial and Financial Chronicle
neces-
other businesses.
many
The
av-
erage rate of return for manufac-
sary.
(1355)
ever, there is a serious question as
to whether such laws can be made
James Richardson & Sons, Limited
turing establishments, for ex- to apply to national banks ~ inlem of reserve requirements.
It ample, was 12.4% in 1956.
It deed, whether they are constituis a problem that has been put secms quite possible that interest tional. And if such laws can be
before bank supervisors and the rates toclay, are at a cyclical peak,;, applied; only unilaterally to state
Federal authorities many, times, and that the next move mightbe institutions, the banks for which
And it is a problem that will coii- ' dowh,: When it comes, bank man- ybju bank supervisors have prime
tinue to be put forward
until agements may have a hard time responsibility will be placed under
action is gained On it: You*kn6w* maintaining
earnings, ^eveh h;serious;competitive handicap, a
the main aspects: that the general though bond losses may. be ;re-.. handicap which may finally drive
level of reserve requirement sis placedby profits. :^fet it is essen- same
banks to. surrender state
too high, and. that the distinction
tikLdhat they do so if capital charters and convert to a national
between Reserve City and Central: h??os.of the future are to,
met;. shitus.. •*.
.
Reservet City? categories is ;dl&- Certainly we shall need
such development
criminatory .toward the latter", v;,:, understanding and help aswe %v^quld* prove to be most unLet
the prob-
turn next to
me
Celebrates 100th Anniversary
.
f
39
■
going to say much;
?^*pital
iri *he
^ riot only from the
.ChairnanvMartm^of^^.staftes'
m
Federal Reserve Board Sites
now;^ come, to hpe; ;finaw}^
efficient and effec-
I
not
am
hboht -this,
-the
sOmereVteiqiT>;^elpbment which I brieve; will^h^^as. wel1- We
:is- desir-^ bere$sebtial if banks • are to fulfil)
.decentralisation in super-
himself stated that
of reserve requirements
fof„the states to
£uide<J , pressures that prbr
changes m banksalong a rai
perSuasiorl T\b£
;
be
o
anion
win
-not
last
hope that the firtt
stepO in: correcting reserve reVuirements
micht
quiremenis migni be taken in the
pe WKen in ine
And
future;
near
vO
lnaenmteiv
wiuld
I
rpntnpp«?
j
bank
anri
and
maHp 'a<7ailahlp
made
avanaDie
now
This
for
tor
loans
ioans,
bankirig
the
if
y:
the
*
both
has not
er0wth
s
economy
neriod
this
Bv
of
growtn ox
do
or
banktog. system,
the large number of banks that
local
serve
do
Nor
areas.
1
poses
still another prdb".. g^yi|y||,gj-g nktionwidG interstate or
lem for bank management
one
gy0n state-wide banking. What is
;in which supervisors also have an needed is a wide recognition that
interest: namely, the need to ex- oiii* nation is
;
loans
growing, that banks1
land bank capital. As you know,". ihustf be permitted to grow with
banks
have
already
increased-,-j^ and that artificial restraints
;their capital by about 70% in the that
place banks in a strait jacket,
; past decade. Yet in spite of this, devoid of possibilities for natural
the need for - additional capital-.growth, .wil 1 do harm not only to
continues to be pressing/ and will
banking,
but to
the American
persist into the future.:-^ ,
^
" economy as a whole.
>
.
.
'
.
^
i
These problems have come to a
optimum volume of capital for. head in .New York State.
But
It is very difficult to say what
'
an
i.tlie'' banking system might
®
a?v°?ated ,.tdat
*
fbis be done by
a revision of the
within.' which
r
hanks
he
-
.
adequate
is
for
bank
one
(Background photographs are of the late Captain George T.
Richardson, killed in France in 1916 and the late James A.
Richardson, father of the present Vice-Presidents of the Company.)
grated economie entity which it
actually is, and that banks be
Permitted to establish branches
throughout the natural area of
ada's
then population center.
and
Banks must do more than think
merely in terms of their own in¬
terests or the safety of the funds
entrusted to them, deeply important as this is. They must think
also of convenience of service
qnd adequacy of resources to do
the many jobs which they are now
called upon to handle. Today
there is no question about safety
Richardson & Sons,
brated a cen¬
WINNIPEG, Can.—One of Can¬
oldest
and
investment
in
tury
...
largest grain
firms,
James
Limited, cele¬
busi-
In
14
from
hence would probably need
than $25 billion of capital.
years
more
would
This
the
require
aauicion'
counts—a larger amount
than the
$7 billion added in the past dec.
I," ...
.
Fortunately, banks are in a
somewhat, betto position today
to pi ovide a good
^
new capital from funds generated
internally.
Additions to capital
...
.
^
accounts
from^ earnings, for ex-
ample, amounted to more than
$600 million last" year.
But if
banks are .to: continue to expand
,
capital,
whether
internally v.or
from outside, bank earnings must
be
maintained
at
an
adequate
levels—a level which
will
attract
and hold investors in bank stocks
highly competitive market
capital.
in the
for
believe
I
there is
cities
public about bank earnings
The popular tendency is
today.
•°
and
ability to protect the interests of
change is not
has
the state banks in the nation's
niat
one. It
new
a
been going on for more than three
mterest
higher
rafcpH
hankbanK
the
also
rates
have
Moreover
evnenses
moreover,
expenses,
public is generally unaware
heavy depreciation m the
the
bond
losses
accoimts and
which
sustain
in
and
customers
available
are
not
income
of the
banks
order
to
for loans.
shown
have
to
in
actual
had
serve
to
their
branch
dinners.
:
Mrs. J. A. Richardson
dinner.
•
and
cities
centers for the
\
.
JamesTtichardson. & Sons, Lim¬
ited is a family firm founded 100
~
years ago in Kingston, Ont. ...
The unique feature of the Rich¬
ardson
organization Is that for 100
years it has been owned and di¬
rected continuously by members
of
the
family.
Richardson
band
as
1939.
Mrs.
President
Her
James
her
succeeded
A.
hus¬
his death in
on
who are greatgrandsons of the firm's founder
Vancouver.
Overseas
tele¬ are both
Vice-Presidents of James
phone from London, Eng. brought Richardson & Sons, Limited.
a 100th anniversary message from
The
firm's
founder,
James
the
Managing Director of the
Richardson, was born in Aughnafirm's British subsidiary, Heatley
cloy in Northern Ireland, in 1819.
& Company, Limited.
He was brought to Canada by his
Mrs.
James
A.
Richardson, father when he: was three years
Winnipeg,
Toronto
sons,
and
old. His father's sudden death left
it
0f|;en
too
degree
taken
has
an
-
ing as a whole. But these dimensions can only be realized through
fore he
orphan be¬
an
four years
old.
He
was brought up by his aunt and
in
Winnipeg.
The
Winni¬
an
older
sister
panic of the skill and effort of the indiand went on to
1907 or the bank holiday of 1933
vidual units that make up our peg dinner, with 600 company begin the family firm of James
Thelast wide revision of banking banking system. If ttiose units are employees and their wives pres¬ Richardson & Sons, Limited in
in
j^ew York
State was mdeed to fulfill their role, and ent, was the largest of the 14 din¬ 1857 when he was 38 years of age.
jawg
brought to a head by the crisis of provide the banking service which ners. In all, about 2,000 persons
When James Richardson died in
1Q33
Qij^Qgt
a
quarter
of
a our
expanding economy needs, attended the anniversary party 1892 he was succeeded as head of
emergency
mentg
_
to
the
bring such adjustfinancial
But
Facts
tjme' wm
still
stand
no{-
stubborn
things, and
they have a way of asserting
themselves. Within the past two
are
years these
the
lu
they will have to break through
some
the barriers that now
bind them,
_
;
•!: /
of
bomb
time
a
„
threatening to explode and alter
arrangements
banking
various states.
in
the
(Special to The Financial Chronicle)
banks
walls
means,
or
can
a
Tj
LOS ANGELES, Calif.-Douglas
Adarn<? has bpoomp associated
.Jr 2?
oecome associaiea
With
r20
Shearson,
onilth
iouslv
Hammill
&
Co.,
Avenue
He
was
wrtS"l^^Dsev-TeeSS
previously
with uempsey legeiei
& Co.
-
Congress
enacted
the
Bank
Holding Company Act of 1956, and
in doing so gave legislative sanca
.
_
Shearson Hammill Adds
facts of growth and
potential
was
from the head office of the com¬
pany
century ago
restrictive
technique,
climb over
erected
states.
I do not believe that any
by
the
Joins
Witherspoon Co.
(Special to Tm; Financial Chronicle)
LOS ANGELES,
Woldls* now~with'
Calif.—Dale R.
Witherspoon &
Company, Inc., 215 W. Seventh St.
of you,
.
as
state supervisors, can ignore
IarM»c P
WppLtLi Qi»
this development. Some states, I
Janies i\« neeKin or.
million.
If these
are
deducted appreciate,
either have passed
James R. Heekin Sr. passed
from net operating earnings, with laws or plan to pass laws that away Sept. 14 at the age of 54.
appropriate tax adjustment the would apply to bank holding com- Mr. Heekin was associated with
rate of return on capital funds panies
the
same
geographical Field Richards & Co., Cincinnati,
amounted to 8.7%-^—a rate that restrictions that now govern the and in the past had been an offalls far short of that earned by establishment of branches. How- ficer of Edw. Brockhaus & Co.
7,000-mile telephone network
linked to loudspeakers at each
these
near
went to the larger
Em¬
smaller
James Richardson
by which
banks
offices
several
Sons, Limited, spoke to all of the
firm's employees across Canada
losses
covered
by
F. D. I. C. last year incurred net
bond losses before taxes of $330
Actually
Victoria.
and
from
President of James Richardson &
These
-
in
to the future of American bank-
and
varvins
in
tion to
account.
em¬
held
were
given some dimensions that apply
although
funds
operating
company
dinners
state
faws afboth Snal
make
the
retired
levelg have gradually adjusted to
Banking
America
same
raised
of
_
capital.
of
America is growing and our
banks must grow with it. I have
in
nenturiGs
tLiime Dressure?thft
change
W to a development at
pressurest tnat b?ou2ht
orougnt the
national level which has all
the
.i1?
one
Vancouver
1857,
states on banking matters, has
both a responsibility and a unique
was
ployees when she joined the com¬
pany 50 years ago in 1907.
Miss
Haire brought greetings on be¬
ployees
a
from
by artificial walls.
This
nrocess
of' growth
considerable
misunderstanding in the minds of
the
establishment are following ..them. But banks are pre-
service
Toronto
Montreal, Kingston, Toronto,
Kitchener,
Windsor,
Stratford,
Port Arthur,
Winnipeg, Regina,
Saskatoon,
Calgary,
Edmonton,
Area- Customers of banks at the' may be jet up mWashington so
The after-dinner speeches came
cen.Hr >re .moving to the outer «iat_ ^the rntei^ts
^e ktate to all dinners from Kingston,
regions, both .business and indi- banks can be better represented
Ont.,
where James Richardson
Department stores and toe, Qertainly
a
group like
founded the firm in
vented from doing so—hemmed in
•
T
„
from
Elizabeth Haire, who was
of the firm's first woman em¬
The
_ .
of
speakers
Miss
ployees.
Mont¬
.
the
half
Sept. 21
with a unique
cross-country
birthday
party.
ness
of funds. But when we look closely real to Vic¬
at convenience and adequacy of toria, company
loanable funds, questions arise in employees
many areas. These questions will had chicken
bulk ever larger as the need to dinner and
mobilize funds for credit purposes'"heard greet¬
becomes more and more pressing ings from the
firm's
offi¬
y?Tai^ a^fad*.
Z1®— Nationm Association of cials by way
wihat is happening in New York
has:'application in certain other
may bo; inadequate for another, areas as well. In cities like New
depending on the nature of the York and Boston bank .deposits
assetsj the type Of deposits, the are not increasing as they are
extent of bhd debt reserves, and
elsewhere. The cities proper have
a
host of other factors, as v you become fully settled but the terwell know. Nevertheless, it is of ritory around them has been fillsome significance to observe that
ing in, and what were once out- State Bank Supervisors is alert to
if capital ratios were to remain
lying regions are now integral these problems. I have heard
as -they
now- are,
our banks
10 parts of a. wider, Metropolitan about a suggestion that an office
be.
f
.What
Mr. James A. Richardson and Mr. George T. Richardson,
Vice-Presidents of James Richardson & Sons, Limited and greatgrandsons of James Richardson who founded the- firm in 1857.
ni-
the area witnin wnicn oanKS pe ainot lowed
to establish branches —
in
I
ail
of a further
deposits
and
prospect
in
,
Postwar penoa. rsy tnis i ao not
i
Metronolitan
mean that radical changes
are particularly tnat tne metropolitan
needed_cjianges that would elim- Area be recognized as the inte-
,posit ratios m the years ahead
But
..
American
i§
American
respect
one
•
.
^
;nprmit a mnriwt risp in loan/de.permit a modest, rise m loan/ae
•advance
in
dt
.TuIa
would
itself
in
....
a
more m Keeping witn our tradi, that
the
structure
of
tional form of banking. In our
-Wv- ^T .structure .01 American
x h_
■
adv * tPrJ
plain fact
m manY areas. The
assets
frozen can be freed
are
*
Banking which are long
eaucea, oanK assets
that
necessary.;
reserve pert
as
reriiired
nrp
.centages are
« .structure and organization of
from
coast to
coast.
The company gave
the
each of its
engraved
1,400
employees
an
sterling silver tray to commemo¬
rate the anniversary.
Each din¬
ner was climaxed by an anniver¬
sary cake with a single candle to
mark one century.
family firm by his sons,
George A. Richardson and Henry
W. Richardson. In 1918 the Presi¬
dency passed to the third genera¬
family when James A.
tion of the
Richardson, son of George Rich¬
ardson, became head of the firm.
James A.
Richardson
head
office
field
of
moved the
from
university and
public libraries throughout Can¬
ada— and through them the Ca¬
nadian public—will also share in
the
100th
anniversary
gifts.
Establishment of the Richardson
Kingston to
Winnipeg and in the '20s and '30s
expanded the firm's operations in
grain merchandising and in the
Century Fund to provide books to
libraries was announced at the
neered in the fields of commercial
More
dinner.
a
new
than
400
James
investment
securities.
Richardson
also
pio¬
radio and aviation.
First to be distributed is
10-volume reference work
A.
The company
vestment
offices
operates in¬
now
in
Canadian
26
Canada,
the
Encyclopedia
Canadiana, scheduled to come off
the press this fall.
Through a subsidiary*, the
Pioneer Grain Company, Limited,
Speakers on the cross-country
telephone
broadcast
included
Vice-Presidents, James A. Rich¬
ardson and George T. Richardson,
on
on
sons
of
the President
and
grandson of the founder.
great-
One of
cities.
it
operates 440 country elevators
the prairies through which it
of the annual
handles about 10%
grain crop.
Another subsidiary
operates a 5,500,000 bushel ter¬
minal elevator located at Port
Arthur.
-
•
\
Thursday, September 26,1957
The Commercial and Financial Chronicle...
(1356)
40
Continued
from
13
page
American-Marietta Go.
Public
Splits Stock - Reports
Utility Securities
announced
17
Sept.
High Yields Available
three-for-
a
tv.o split of common shares, an
accompanying increase in the div¬
idend rate, and record sales and
earnings
in
the
nine
months
ended Aug. 31, 1957.
The stock
share
new
and old
Nov. 1,
the
both
1957 to holders of
and
1957,
or $2.21 per common share,
compared with $9,860,031, or $2.47
ratios since
P-E basis.
so,
utilities is
only 13.1 compared with the U. S. average around 14. And where
individual payouts are around the U.S. average, the price-earnings
ratios really reflect a bargain basis. Thus Public Service of New
Hampshire sells at only 11.3 times earnings compared with the
omitted.
scare
per
for the same period a
on a lesser number of
year ago
chares then
outstanding.
Sales in the three
months ended
Aug. 31,1957 amounted to
$59,092-
up 16.2% from a year
Profit in the quarter was
$4,677,-
278
against $4,114,662 in the cor¬
& Co., Inc.,
to retire $50,000
notes
ordinated
Inc.
was
or¬
the SEC that it may
which
in
Mt.
pal
3800—34th
at
3VIt. Ranier,
Indie.
area
i"
we
Approxi¬
Recent
Price
Dividend
mate
Share
Earns.
dend
Rate
Yield
Earnings
Ratio
Payout
aJkwAw
so
New
Maine
United
serve
much
P.
&
Power
Illuminating
Eastern Util.
Assoc.
.
,
•$1.17
;
5.6
ti.oo
18
over
Revenue
85 Tc
1.41
6.4-
1.40
6.7
1.71
24
1.30
5.4
1.64
32
2.20
6.9
2.31
-
.
.
I' 14.9
>•
.
.81
11.7
•
(MMls.)
$142
-
83
71
74
44
82
35
14.6
80
33
14.8
95
Pub.
S. of New Hamp.
Western Mass.
Connecticut
industry.
Hartford
Central
v
Write lor
31
Power
Electric
Lt.
1.46
11.3
70
39
2.20
5.6
3.11
12.5
71
26
41
2.25
5.5
2.84
14.4
79
23
55
t3.00
5.5
+4.13
13.3
73
22
6.3
1.10
14.5
91
12
1.40
6.7
1.43
14.7
98
8
32
Pwr. 14i;a
1.90
5.9.
2.65
12.1
72
7
1.00
6.9
1.13
12.8
88
6
16 Va
1.08
6.5
1.42
11.6
76
4
13.3
81'c
Vt.
Pub. Serv.
16
1.00
Pub. Serv.
21
Green
Maine
Hydro-Elec.
Mountain
Public
29
6.1
Housatonic
Bangor
FREE
Cos.
tl.00
16 Va
Service
-
6.2 Tc
Averages
CHy 10,
Utah
few small companies such as
and
Lawrence
tDividends in 1956
were
^Includes
tax
93
cents
<
due
to
accelerated
(Special to Thv Financial Chronicle)
T.
Marcuson
of
J.
has
Clayton
'.
Main Street.
joined the staff
Flax
&
Co.,
1562
1
and
depreciation.
With Keenan & Clarey
,
SPRINGFIELD,. Mass.—Harold
J
amortization
'
_
(Special to The Financial Chronicle)
.
MINNEAPOLIS;- Minn,
Theodore
H.
Furth
has
the
nad
activities
uniform
statutes
made
of
the
possible.
and
been introduced into the
(Ingress
by brokers which is designed to establish an
make
such
of
investment
be
recognized
threat to the ef¬
the
administrative
process.
Conclusion
The Comission and its
and must continue
staff
are,
to be, alive to
obligations which have been
discussed. The Commission is con¬
the Economy
to
as a
of
fectiveness
these
stantly
re-examining its substan¬
procedural rules in the
and
tive
How¬
and generally ac¬ light of these obligations.
concept of
Government ever, in order for the Commission
regulation. This concept has two to give the utmost possible protec¬
aspects.
First, the Government tion to public investors and serve
must provide sufficient regulation the public interest in the most
manner,
it is essential
of business to protect the public effective
from recognized evils. Where pri¬ that the investment industry and
the
financial
bar
recongnize
and
vate rights may be threatened or
jeopardized, public opinion de¬ fulfill their own obligations to
afforded by keep informed as to the standards
securities
Second, prescribed under the
regulatory power must not be ex¬ statutes and to cooperate in at¬
ercised in a manner that would taining the Commission's objective
full
compliance
with these
tend to suppress economic growth of
regulation.
become
unnecessarily
with
interfere
statutes.
enterprise system that is
basis of the American eco¬
the free
ulation
On the contrary, the reg¬
that the Commission ex¬
ercises
over
nomy.
the processes of
capi¬
securities in¬
dustry and public utility holding
company systems should be con¬
tal
the
formation,
ducted
in
connected with Keenan & Clarev,
strengthen
Inc., Pillsbury Building.
The
I
has
and
fundamental
the
partially free of Federal income taxes.
J» C. Flax Co.
.
J
Fitcliburg Gas & Electric, Lowell Electric
Electric.
savings
securities
tion to function in accordance with
or
Light,
Salt lake
a
prudence
prospectus; the requirement Commission, its philosophy should
Government
Box 899,
•Excludes
evi¬
subject to court
review, has been conducive to
careful and responsible initiation
of objective investigations and to
the development of fair and com¬
plete records. The exercise of ad¬
mands the protections
COPY
Dept. K
substantive
of
are
cepted
99
12.3
necessity for
The Commission has an obliga¬
Annual
-
basis
and interpretations
advisers.
Divi¬
13.6
1.21
•
1.05
161a
21
13.2
«
3.45
6.0
its
create
reports as the Commission may
prescribe; and the grant of inspec¬
tion
powers
to the Commission
'
2.80:
the
on
dence, which
Ex¬
brokers
held
collateral
maintain records
'
CHEST
WHi
Lt.
Eng. Gas & Elec.
Central
opportunity
to
impor¬
that investment advisers keep and
a
6.5%
tsi.oo
-
customers'
of
Obligations
About
Elec. Svst. 15 Vs
Edison'*!!
47:-
Connecticut
ii
offers
af¬
of the mails or other
the grant of
to
UTILITIES *
ELECTRIC
use
anthority
in its
to note
Price-
Eng.
Boston
[explains why the
i
company,
from gas, but there seems to be no
NEW ENGLAND
The combination of powers en¬
dealers; the imposition of a administrative court and to trans¬
requirement that an investment fer the adjudicatory functions of
company obtain
stockholder ap¬ certain
independent
regulatory
proval where fundamental changes agencies to this special court. Al¬
in investment policy are made and
though this bill is riot applicable
that it state its investment policy to
the
Securities and Exchange
well protected against inadequate supplies of
seems
Street,
AREA RESOURCES BOOK
i
holding
Another
which has not taken
the adversary pro¬
and
have to dispose of its several gas subsidiaries,
12% of revenues, and hearings on the
a
the
facilities;
excess
utility stocks pay dividends which
partially free of Federal income taxes, as indicated in the table.
are
New
ifm
that it
Md.
'
more
would
over
interstate
tion
about
revenues
in
The question whether adminis¬
trative agencies can render fair
the Commission to and impartial justice has topical
adopt rules regulating the segrega¬ significance, because a bill has
that several of the New England
corporation has its princi¬
office
by it.
are
Securities
the
without
proving
Aroostook County in the north¬
natural gas, or sharp price increases, in future years.
In connection with high yields it may be interesting
Silver
Spring and Takoma Park, Md.
The
for
45% of its
gas so
only at four
Ranier,
the
Commission
dealers
obtains
like¬
lihood that it will have to dispose of its gas properties which could
hardly be classed as "incidental." NEGEA, while now receiving
natural gas, has specialized in efficient methods of manufacturing
some
period of years to conduct
a series of small loan businesses,
in various parts of the country.
However, for the present, opera¬
locations
account
in
jurisdiction
is fairly well diversified industrially,
longer dominating, lumbering and paper
question will soon be held.
New England Gas & Electric, also
over a
tions will take place
no
the
tip of Maine, served by Maine Public Service, has long
been noted as a major potato area so that the fortunes of this util¬
ity are partially dependent on the trend of potato prices and crops.
New England Electric System has recently been reminded by
intention
company's
are
activities.
group,
part
any
judicatory powers by the Commis¬
change Act of the status concept sion has been an important factor
for
brokers
and
dealers, under in the development of a generally
which the act of registration with consistent
body of securities juris¬
eastern
or
through subsidiaries,
principally in the small loan busi¬
ness, making loans to individual
borrowers under the small loan
laws of the various states, as welf,
as other forms of financing.
the
England
still important in some areas.
are
rectly
is
New
that textiles
now
ganized
on
Nov.
22,
1955, in
Maryland in order to engage, di¬
It
various laws
Among
lishment
stages.
While
Finance,
has submitted to
the most controversial, are
following proposals: the estab¬
the
other
short-term debt.
staff
a
groups
ap¬
and
matters ceedings, assists the Commission
This year, in its decisional processes.
tant, and for some of the industry
make
additional loans and reduce
Dalton
fected.
bulletin reported that in Maine streamflow was falling
rapidly and reservoir storage low, as a result of the summer
drought. Runoff was also deficient in portions of Central New
England with storage and major reservoirs ranging from 65 to
100 % of average.
In Connecticut also ground water levels con¬
tinued to decline and in most areas were at or near record low
for
on
of the
tions
Recently water conditions have been*somewhat adverse. The
of the U. S. Geological Survey in its
4% five-year sub¬
(presently sub¬
to
legislation
Congress
A total of 87 sections and subsec¬
August
ject
to
redemption
proximately $40,000),
to
statutes administered
seven
"Water Resources Review"
proceeds are to be used
advice
The
matters.
broad amendment pro¬ trusted to the Commission has
gram designed to close loopholes, not been prejudicial to individual
clarify language and strengthen rights. On the contrary, the power
investor protection in five of the to make
quasi-judicial decisions
63
25
33
Central Vermont Public Service
cative
prosecutory
recommend
Congress
the larger companies.
18%
9
Hampshire
Public Service of New
75 cents per share.
The net
to
further
Hydro-Electric
Central Maine Power
on
on
The Commission has an obliga¬
tion
the Commission
Electric System—
Connecticut Light & Power
The observance of internal con¬
trols,
honest administering its investigatory and
and
complicating factor in New England is the use of hydro¬
which sometimes results in erratic earnings. Per¬
haps this is another reason for the relative unpopularity of the
New England issues. Last year electric output was derived from
New England
Sept. 17 offered
and
sold
267,000
shares
of
class A common stock
(par 50
cents) of Dalton Finance, Inc., at
reports
give candid
opinions.
within its jurisdiction.
Offering Completed
York,
comment
or
at 12.1.
hydro to the following extent by some of
not
or
proposed legislation, the Commis¬ assistance of one set of specialists
sion has the obligation always to is obtained
by the Commission in
electric power
Oalton Finance Stock
McDonald Holman
administration
Western Massachusetts
slightly lower.
or
whether
see
intended by the Con¬
as
which insulate prosecutory
being carried out or and investigative duties from its
whether they were being repealed decisional
processes, affords im¬
or revamped by those who admin¬
portant protection to the constitu¬
ister them." Frequently summoned tional rights of litigants before the
to testify before various commit¬ Commission
by preserving inde¬
tees of Congress to report on its
pendence of decision in adjudi¬
A
responding 1956 period.
New
around 14
companies sells at 12.5 times earnings and Bangor
stated judicatory functions from its other
subcom¬ responsibilities.
The
special
were
gress
be bought more for the high yield than on a
the average P-E ratio lor the New England
U. S. average
earlier.
€11,
"to
the laws
stocks may
Even
is
mittee
higher payouts than the U. S. average.
High payouts tend to raise the price-earnings
536,
Rights
Legislative procedural. One of the procedural
safeguards which the Commission
on
this
of
purpose
72% and would be a little
England companies (which average 81%) were
All but two New England companies in the table have
lower if the New
Constitutional
The Commission has the obliga¬
tion
to
administer
its
various
third
a
Commission.
change
electric utilities averages about
U. S.
Obligations to Protect
the
has
always
carefully
observed,
to investigate/the conduct even prior to the enactment of
of various independent agencies, the Administrative Procedure Act
including the Securities and Ex¬ of 1946, is the separation of ad¬
however, accounted for in
$155,162,325 from $136,789,081 a
year earlier, a 13.4% gain.
Net
income in the period was $11,009,-
industrial
and
powers
part
by the relatively high payouts which seem characteristic of the
New England corporate philosophy.
The average payout for all
net
the
sentatives has been invested with
yields and reasonable sta¬
notentiai capital gains associated with
growth" utilities, investments in New England utilities
offer good opportunities. The accompanying list (arranged in order
of size) indicates the high yields obtainable.
sales
in the nine months advanced to
American-Marietta's
is to
of
public in the intergrity
financial
our
economy
Oversight of the House of Repre¬
who want high
Many of these good yields are,
our
confidence
institutions.
and
of Representatives.
House
Subcommittee
the "rapid
amounts to a 25% in¬
the present rate.
of
Interstate
Commerce Committee of
addition,
bility, and do not crave the
record Oct. 18,
American
of
to
the
preserve
In
Congressional powers within established legal
Committee, known as the Special principles, both substantive and
the
Texas.
For those investors
Commission
Banking
Committee
the
and
Foreign
have largely offset the loss of tex¬
diversified industrial background.
Nevertheless, the stigma of slow growth combined with the tightfisted character of the New England State Commissions have com¬
bined to place the New England utility stocks in a less favorable
position with Investors than those of utilities in rapid growth areas
like Florida and
committees—the
Currency
Senate
research organizations etc.
tiles and given the area a more
over
crease
and
ery,
continuing responsibility
a
report to two standing Congres¬
sional
(though wrongly) assumed to be a non-growth area
of a large part of the textile industry. An
influx of other industrial units such as electronics, special machin¬
since 1950.
will be payable
on
shares,
to
because of the exodus
share for each two
one
ties and
frequently
common
statutory duty to make annual
reports to Congress on its activi¬
England is one of the less favored areas of the United
of utility regulation and rates. It is also
New
stock,
held, will
be distributed on Oct. 15, 1957 to
owners
of record Sept. 27.
The
new
cash dividend, 25 cents per
additional
The
Stocks
States from the viewpoint
Split will be the company's fourth
within six years, and the dividend
increase
the 10th on the com¬
pany's common shares
New England Utility
on
It has
utes committed to its care.
the
American-Marietta Co. on
The
Obligations of the SEC
By OWEN ELY
Record Sales & Earns.
a
manner
our
ultimate
that
economic
obligation
will
Colvin With Knowlton
^(Special to The Financial Chronicle)
OAKLAND, Calif.
W.
Colvin has
—
become
Raymond
associated
with Frank Knowlton & Co., Bank
of
America
who
has
business
Building.
been
for
in
many
the
Mr. Colvin
investment
years
has re¬
system. cently been with Hill Richards &
of
the
Co. and Walter C. Gorey
Co.
^Volume
186
Number 5676
.
The Commercial and Financial
Chronicle
.
.
41
<1357)
Continued from page 12
Whether it will be three
years or
Continued from
page 5
five
Development of Gold by
U. S. Monetary Policy
the
meantime,
miracles
Should
lar
power, gold will
only
hope
cannot
for
(Billions)
happen.
Circulation
reach the 25 cent dol¬
of
1939'
we
value
$8.75
tional
will
we
that
purchasing
realty wortn
be
per
Bank
complications
would
be
All
hand at this moment.
gold,
apparently
be
by
cannot
be
fact
manacled,
remains
of
these
need
change of currency value will
have to be defined in the
yellow
Governments here or else^have
substitute
no
monetary definitions
once more
and
surrender to the
by
such
as
into
by only 15%,
Unfortunately,
to
gold
in
will
such
cover
needs.
to
to
will
continue
The
United States
.mi
or
the
are
by
have
Great Britain_____
1.650
West
1.494
Germany
All
other
Total
Estim.
Prospects
American gold production
is, as
already stated, a very small
island in the ocean of this coun¬
try's total production. The gov¬
Private
_,___
$46,200
Hoards
11.900
This
total
gold
stock
countries.
that
such
minds
that neither we,
and
about
its
bad
constantly
mistakes
of
gold
policy since 1934, cannot get much
gold from its domestic output.
Therefore,
in
all
probability,
it
will! not take
any measure which
would just be
only favorable to
the owner of our gold mines.
is
It
furthermore
student
of
clear
monetary
to
any
problems,
that the present world cannot re¬
turn to the gold coin standard.
Such
a
show
more
return would
immediately
than any other fact, to
what degree the obedient and
pa¬
triotic citizen got
expropriated by
the rulers whom he respects. You
all
may
know
about
the
gold
sovereign,
worth
just
Today, the
fetches
The
once
upon
one
pound
same
gold
time
a
sterling.
sovereign
£3.12/6 in paper pounds.
French
Francs
is
present
Napoleon of 20 gold
at
about
3,725
francs.
Our
French
life,
the
British
know about
and
such
the
facts
of
we were prevented for about
20 years from
ing in
until
knowing it,
gold coins
our
deal¬
as
illegal
was
1953.
Yet
as
will
we
debasement
of
eagle
of
same
value,
might
"New
more
alone
our
continue
the
currency,
the
ancient
to
go
10
30
Dollars."
would
be
dollar
or
even
This
rather
a
fact
embar¬
rassing and constant accusation of
our
past
and
Therefore,
it too
present
legislators.
will avoid
we
visible for the
making
man
in
the
street.
simply have not enough gold to
make such a
step possible.
We
really own, without
mortgage,
$10
Should
we
standard,
and
to
with
$13
billion
return
to
a
of
gold.
gold coin
even after a devaluation
a
double
amount
of
simply "up-valued" yellow metal,
this still
will not be enough.
A look at the
my
point
figures will prove
of view:
China
the
or
and bank deposits
As
it
is
and
illusions, let
To do
discard this dream.
us
does not
so
that gold
mean
other
in
There
done
a
as
every
government will continue to cher¬
ish the possession of the
yellow
time, we
metal.
nopoly
of
remain
the
mo¬
government
will
is.
as
Predicts
owner¬
the fore¬
gold
Eventual
Devaluation
of
Gold Price
Thus, the
does
not
sight.
to
lems,
than
means
a
so-called
But
such
bankruptcy,
the
take
to
years
gold
price.
of
if applied, will
I
come.
have
no
doubts
that it will happen.
In
meantime, all administrations
the
which will
to
deny
exists.
assume
that
That
assuring
office will try
such
is
the
show1"
way
public
and
of
re¬
to
sell,
bonds.
the
ievitable
of
end
dreaded "recession" of
able
intensity,
ment
will
gold price.
100%
or
act
its
unpredict¬
then
the
and
increase
govern¬
the
Whether it will be by
even
tell you
nobody can
today. And only a shrewd
crystal
ball
the
more,
reader
eventual
date of
could
such
predict
a
deci¬
sion.
increased,
might be useful for those
mine gold to put their
some
mas¬
able
was
prosperity,
the loss of pur¬
the monetary
on
of
power
the
answer
strategy always had
ready: look what we
This
facts.
bragging
The
sort
of
mines
dormant
who
into
position.
the
the fact
tax
laws
of
this
that
coun-
and less formidable
or
the
ownership of a
corporation resides,
ultimately, in
individuals and that a corporation
had
cannot
that
party
this
new
whom
on
properly
identity
tax
a
levied.
is
Obviously,
utterly ignores the
should
not
be
illustrate ta fact
m
to
this,
as
ness
stream either via their busi-
ness
operations
in the form ot
or
claimed,
was
these
necessary
simple
as
popu-
depression
and
prolonged
oversavings on tho
dividends; hence, it
Inequitable Corporate Income Tax
It
was
the
turning these back into the busi-
this
*
that
caused
retaining too large a proportion
of their
profits; they were not
a
facts.
j
been
ones,
1930's it
claim
(in part) by
part of corporations. This was to
claim that corporations had been
be
may
tfie
Back in
lar to
have a personal
identity,
Instead, the tax laws imagine that
some new
personality is created
by the formation of a corporation
in
metal
1940
at, let
bought
us
suppose,
a 400 ounce bar, com¬
legally punishable crime.
Since then, he received no inter¬
est
a
his
on
investment, which even
at
only
3%
would have amounted to
$7,140
for 17 years. But his gold
bar, in
1940 purchasing power is worth
when
calculated
only
$6,860.
The result of such
hoarding was simply negative.
But at the
gold
same
strategists
did
dare
not
that
gold
in
We
time the anti-
in
Washington
explain another
to
enabled
them
"isolation."
to
keep
There
the
complicated.
have, in the U. S., just
one
less
trillion
dollars of public
and private debts. The amount is
growing.
Between March 1956
paper
and
March
the
1957
the
of ihe
present
3.7%.
If
by
"trillion"
amount
of
purchasing
dollar was
applied
total
of
debts,
billion
$37
has
to
corporations were decreasthe amount of money that
ing
keep¬
ing the present boom going.
Unfortunately, this boom can¬
continue eternally and will,
one day, collapse.
not
With this
lar
will
crumbling,
be
a new
dol¬
born.
It will be defined in
milligrams
of fine gold—less than the present
number, but how many or how
few, 1 do not know. And I sin¬
cerely doubt that we will, even
if
increase
we
100%
some
or
the
more,
real gold standard.
Governments
be
gold price by
again return to
"policed"
do
by
their banknotes.
of
paper
not
gold
want
to
covers
of
practices
accept being ruled by
the yellow metal.
this
reason, I am sorry to
be unable to give better than the
outlined prospects. There will be
chance
no
of
seeing
coins minted in any
as
long
use
the
when
we
period
U. S. gold
of our mints
We will only
live.
yellow metal
as
of
we
are
officially
forced to legalize
debasement
of
a
paper
money.
miners.
But
as
I
cannot
20
form
one
or
tax
to
could be or was
being spent on
goods and services, which, in
turn,
either was creating a recessionary
-
it
individuals
say
part-
more
would
be
business trend
lespective
on•'
11
one
capital
°I- a7ai,8eTl
-
j
contributions
in
to form
were
Federal
after
aggregate
tax
of
net
these
ously inequitable.
But
It
The thought I now wish to outijne js that to the extent a
corpo-
0f
alternative
rates of so-called income taxes
there,
and
gold
change
facts,
on
its}
its
pretax
profits,
its
taxable
reduced.
Let's take American Tel. & Tel.
as
an
low<
so
example of what might folthe Telephone Com-
195£
In
paj3y showed earnings after taxes
forth,
which frequently make
a.Aof
plus per
The divieoi porate
form m o i e advantadend ra^e js $9
However, under
geous than a partnership to many
the fonnpJa x
mentioned, and
people, despite the existence of
without one penny of change in
the coiporate income tax.
dbe ecrnjings or other expenses
One net
^
shal^
£ave
result^ however,%
is to
m the
equity of
corporation
eithei
business
twice
turn
expensive
as
only
half
individual
in
undertaken
in
nership
able to
or
taxes)
the
re¬
as
the foim of
an
k
—-
the
required
°ther
on
capital
ately,
partnership
or of a corporation.
consequences aie that busicorporations have found borrowed capital to be so attractive,
relatively, that the. demand has
thiS
Two
equities of
bivest in
ina
tion, two stnkes
are
called
investor
right oft the bat
corporation earnsj $
on
t
a
t
If the
all
of
increase
would
too.
called
are
might
"the
find
rich man's
it
desirable
their dividend
revamp
Under
the
policies,
formula
higher prices, offer yields of from
^ to 4V->%
or
more.
Such a
same
individual
rewarded
I
may
different
outline
sense,
be
equi-
table, and would reduce the magof a number of our really
the
to
provide
Stimulate
Bankers and
sure>
to
corporations,
more
the rates of return
available
a
rank
file
and
real stimulus tc
•
approach
economic
of
revamning'0f
bould
a
where
taxation
nitude
yields
high-grade
so-called
stocks* that because they
yields
of
only 2.50%
to
drastical]y>
is
which, I think, would make moie
the
the
the
If, however, the cor-
which
somewhat
And
3.00%
by a full $1
return. Well, I'm not going to try
to unravel the picture from there
on; my purpose in going this far
is simply to provide a backgorund
against
and
save
tbey mjght< while selling at much
partnership, the
be
stocks
babief?»
ic
poration feasibly could shift into
would
to
Ti^suiy
left foi
takes 52 cents. 48 cents
the investor.
increased
an
people
it.
0ther
offer
invested in
are
the
at
growth
business corpora-
a
offered
offer
to
to
Obviously,
Strikes
Thus, if savings
the
stock
jncentive
m
lamei
yield
markpt
prke
probably
woujd
be, therefore, somewhat
]arger than it is today. And, if
that were tme> j would expect
The
compounded
as
much, proportionthe increase in the divi-
The
higher
ness
been
be
as
dend
is
treated the same, that is, whether
it forms a part of the capital of
a
would
rise
in
j doubt that the price rise
woldd
hand, the return
borrowed
undodbtedly
prke
if that happens to be
practical vehicle.
On
$25 per share and
dividend nf
of npvh:imi
perhaps
HivirlnnH
What would happen to the marf value of A T & T common?
Jt
part-
a
tAroun'd
$18.
business
same
company, it might show earn-
ingg q£
, 1,4
nnw
a
would
pay a
(before
much
as
income
investment
a
^
investment
ave
they should accept it.
It
might be better for them to know
they are standing, instead
of hoping for events
that most
probably will not happen.
return
a
income would be
commensurately
on
capital gains, we have innumer¬
able exemptions for one
group of
citizens alter another, favors here
discriminations
out
pays
capital, either in the form of in¬
terest or of dividends up to 70%
personal
on
have
we
ration
also fails to
have another
we
ostensibly, was
a
corporation
its profits in
purpose,
Proposes Tax Revision
corporations
whole series of taxes
incomes,
rest
not, but
the Federal corporate income tax.
earnings
would be reduced to
$48,000.
Such a disparate result is obvimake sense.
the
dividends, it would- be rewarded
(?) jn that such a portion of its
profits would not be subjected to
corporate
appli-
tax would become
the
or
provide that if
disbursed 70% of
which, for our purposes,
be said to amount to $52,000,
and
come
to
cable
may
penalty. '
told that the way tliid
out of
Congress had
was
original
corporations and if
corporations were to earn,
the aggregate, $100,000 after
a
a
story is correct
once
jaw
more
income
preventing
don't know whether
j
the
these
expenses
was
S amo?2 the consequences quite different from
?vever| 1 these those that had been intended. Tho
.'j
20 individuals
or
or
should be imposed as
ap-
simply enlarged.
and cannot
For
If
porate income
They want free¬
money
wanted
plicable
to
that
$100,000.
The
profits of the partnerships would
be taxed in accordance with the
an
total budget expenditures, created
the negative incentive for
I
same.
to
were
been
simply wiped out. This sum, cor¬
responding to more than half of
decided
the
on
the
$14,000 for
mitted
I
same
based
was
who
man
This is bitter medicine for
To my mind, it is unavoidable.
As we will have to wait before
the gold price will be
it
other
•
dom
Yet when the present
shrinkage
of
the dollar's value will
have
to
fantastic
a'
only
money
possibility
a
their
all
government
per
increase of
declaration
to
(including those o£
monetary and credit authorities), even though, in the process,
it would create some other, new
nerships, each partnership to con- an
upturn in over-all business
sist of different
individuals, and activity. Therefore, it was proif, dm/the aggregate, these partposed
that, where corporations
nerships showed earnings of Tailed to
disburse 70% of their net
$100,000 after expenses—no corprofits after taxes, a further tax
prob¬
devaluation,
official
even
in
other
no
currency
100%
frank
a
is
good
a
mines
future
rosy
there
our
which
the
a
Surely,
solution
of gold
owner
have
But
and
S.
big problems
the
problems that could not be
reduced
the
operate
is to
it
operate in corporate form.
just
power
and
to
as
history, here and abroad. By this
technique,
running
away
from
the present restrictions
ship will not be eased in
feasible
as
partnership
but
But, at the same
in this country will
probably not
see gold in
monetary private use
again. Therefore, I believe that
on
is
a
1939 dollars—to its lowest level in
story is
happen,
other conclusions
no
monetary administrations of the
world, including the Soviet Orbit,
has pushed
the gold price — in
too
seeable future
are
communicated
ess,
fact
not
have
expenses
monetary policy has
perfect job of debasement
yellow metal. This proc¬
the
under
try do not recognize this fact
to the problem.
of
it
ones,
a
1939 dollars.
will become what Lenin predicted
a quarter of a
century ago. That
will
at
by far
eliminated every profit at the real
gold price of about $17 per ounce
always useful to bury
cycle, which will bring about the
Enough Gold
But, besides this touchy prob¬
lem of gold coinage, it cannot be
stressed
often
enough
that
we
about
Britain
plan to make their
can
currency units
run
Not
sufficiently
once
famous eagle of 10 gold dollars is
worth
about
20
paper
dollars.
Whereas
not
believe
nor
only
Gambling in gold mining has
become
unattractive,
as
wages
er.
the
convertible into gold
coins, freely
available to the public.
listed
paper
figures
certainly
U. S. S. R.
I
able
did
without gold.
They even
bragged about achieving a com¬
plete victory over the gold hoard¬
corresponds to about 58
years
and nine months of the
present gold production of the
non-Soviet
to be
bmall minded Napoleons of
pa¬
world
prove
Washington
of
sure
date.
unit.
8.644
ernment, very unhappy to have
gold mining industry which re¬
a
profits,
their
reap
chasing
$58,100
Such
of
to
to
lem.
Consequences
be
1.975
countries
diversify, in order to
subsoil should
built up
gold min¬
-
to
tne
waiting period. Final¬
ly, those who buy claims on rich
tered,
1.103
IMF, EPU, BIS
look, at that prob¬
a
1.676
International Agencies:
of
ing industry in the United States?
us
7.600
Canada
Mos¬
consequences
prospects for the
Let
$22,058
Union
Switzerland
their
destiny,
in Washington.
What
such
ruled
guide
be it in
monetary
cow
be
not
world
Per Ounce
Soviet
governments hate
is
entire
Billions of Paper
Dollars at X:55
purely down to facts
consideration, gold, as much as
well
The U.
global
gold position showed, at the end
of 1956, the
following breakdown:
this
it,
only
would
we
there
the
uring rod which alone enables us
to wipe out
part or all of our
In
If
gold
meas¬
official domestic debts.
would
gold.
20%
a
Federal
are
Equity Capital Encouragement
Those who cannot, will
increase.
about $79 billion of
gold.
enough
for
we
and
convertible
covered
every
metal.
where
items
when
they start to
again after the gold price
proouce
do
"sit it out" will
can
profits
future
more
because
sure:
275.0
cover,
than $100 billion of the
yel¬
low metal would be
necessary. If
thinking of govern¬
economists, will show that
one
220.0
$526.0
covered
wishful
ment
it
handcuffed
$31.0
Debt
commitments
And that will be the time
when
the
banknotes
Total
at
Those who
make
survive
Deposits
Federal
interna¬
ounce,
of
or six, before it
happens, the
waiting period, even in paper dol¬
lars, will be costly.
man
this
will
Equity
Capital
businessmen, I
am
able to envision
naws and complications in
idea.
be
First
of
all,
any
such
change would have to take place
by stcps; you wouldn't make it in
.
^
Continued
ao
on page 42
42
The Commercial and Financial Chronicle
(1358)
Continued
from
bonds
41
page
the
—
question
is
whether
this will last.
Let's review for
the
Equity Capital Encouragement
would
porations and other
tional buyers looked
tiveness
might continue strong.
moment. Dur-
a
the past two years business
has been going strong, but during
eigut
past
boom
bit
its
has
have
to
seems
of
montxxs
the
so
or
lost
good
a
And, while this
steam.
been
going on, the costs of
borrowing have steadily advanced,
non-institu¬
though it Looking oniy at the business picThe inter¬ ture, one would expect, or so it
esting point, I believe is that al¬ seems to me, to find that the high
the demand for such money, while though the national economy was yields on bonds might have been
it likewise would make it cheaper going ahead at full steam on nearly reached a year ago, or last fall,
fell
one
But,
swoop.
thing
I
it
grossly reduce the attrac¬
of borrowed capital
to
American
business, and reduce
feasible to seek equity
and more
If increased rates of re¬
money.
turn
to
effectively stimuate.
among
the people, the
are
savings
area
to
which there is
in
it
do
"share
the
real
wealth,"
if
will,
you
lies, I believe, in the direction I
outlined.
have
And
the problems of
that
think
I
the monetary and
vastly
as changed.
In¬
credit authorities would be
reduced
terest
well
as
in
rates,
judgment,
my
would decrease automatically.
What
would
cost
it
can't give
the Treas¬
precise idea.
I'll hazard the studied guess that
the
net
cost
(in tax receipts)
ury?
I
would
a
1995 at
The
porate and personal incomes. But
some
savings also would come
smaller.
The decrease in the
de¬
has been supplied, in
part, by leading Reserve officials.
With
admirable
frankness they
said
have
one-half
at
financing
rowed money
of all types, includ¬
ing the costs of borrowing by the
Treasury and by State and mu¬
nicipal governments. So the actual
cost
would
be
would
move
much
not
be
less.
The
expensive to
the Treasury.
Interest Rate Outlook in 1955
Now, we'll move
directly
more
to consider the outlook
for inter¬
est rates.
It might be well to re¬
view, first, the situation two years
ago, in July-August of 1955.
In
and
in
late
too
cost of
the
there
and
its recent
was
good
a
demand for 3s at 100.
The Picture in 1956
able
sell
to
an
additional
block of the 3s of 1955 at 100, suc¬
cessfully. The discount rate at the
time
X"A%.
was
It
was
lifted, in
August,, to. 2%.
The business
time
background of the
this.
was
Practically
every,
phase of the economy was going
full tilt. Business expenditures for
new
plant and equipment were
soaring. The rate at which resi¬
dential mortgages were being cre¬
ated was tremendous, after having
just about broken all records the
year
before. Consumers
were
buy¬
ing their heads off, and consumer
instalment credit was zooming at
a
rate
that
caused
some
to
be¬
alarmed. Unemployment had
dropped.
Employment was at a
new
high.
The number of
come
weekly hours worked by produc¬
tion workers in
manufacturing was
steadily climbing. Weekly earn¬
ings were soaring. Industrial pro¬
duction
fas measured by the Fed¬
eral Reserve
Board) had
Now, let's move along and
what the
in
picture
was
July-August,
a
see
ago,
year
busi¬
The
1956.
picture had undergone some
change, but the economy was still
going ahead at pretty much full
ness
the
The stock market
capital
not
was
The demands
buoyant.
so
market
on
enlarg¬
were
The rate of creation of resi¬
mortgages was somewhat
ing.
dential
and
repayments were larger.
It
was popularly said in view of the
shortages that existed hither and
yon it was a good thing that resi¬
dential
housing
activity had
ta¬
pered off and the sales of new cars
also.
Lendable funds
labor
were
and
skilled
among
end of August.
The discount rate
advanced to 3% in August.
was
But,
even though the economy
pushing harder against the
ceiling than is true today, the
Treasury had not had to pay any¬
was
where
4%
near
for
short-term
and the 3s of 1995 were
selling almost 7 points higher than
they are at this writing.
money,
Current Interest Rate
Now
let's
look
the
at
current
picture. The point of greatest
cern
is
the
rise
in
con¬
living
costs,
which began in the spring of 1956
after
continued
almost
off from the peak reached last De¬
cember.
It is no higher than it
in
December
Housing starts
mobile sales
mately the
The
ago.
are
are
a
year
down.
ago.
Auto¬
level
same
prospects
as
for
a
year
the
1958
holding their
ever
own.
State and local
sumer
lair
governments
were
financing in
large volume although at a some¬
what lesser pace than the
year
before.
New
securities
issues
were
of corporate
coming to market
in
fairly large volume. The loans
of the banking
system had been
climbing for some time and still
The prospective demand for
bank credit was large. Bank hold¬
were.
ings of government securities were
declining and had declined in
amount not far from that
by
other
bank credit had
which
increased.
The prospective demand for shortterm
Treasury securities by
cor¬
to
can
that
creases
in
feel
responsibility to
they
ever
a
pri-
do whatthe ingoing on
oppose
have
been
living costs and to bring about
reversal
soroe
of
in
the
long
They call our
attention to the great increase in
has been
They stress the lm-
over.
instalment
or
credit
its
the
old
either
too worrisome, how¬
choose to characterize it.
Altogether, it is fair
for
is
The
con¬
not
you
moment
zing.
It
the
feels
so
portance of velocity and the necessity to avoid so-called normal
increases
in
the
money
supply
price
that the demands for borrowed
is
anAas
t^e^iarkeTvalueJ
standina
fixcd
decrease,
p^ ticularly
the
me
of
hicome
ot out-
securities
Treasuiy se-
availabilitv of
credit
availability
ot crtciu
additional
increments
decrease, too.
It is in such
an
environment that
comfortably large Treasury cash
a
surplus
As the surplus
needed.
is
to
from carrying out any
bond purchase programs you may
you
have in mind
any
it
The problem was blown up
shift
in
that
maturities
from considering
or
your
might
a
bit.
security port:lengthen your
This
business
picture could resolve itself in a
way that would be quite favorable
only source of money available to to higher bond prices within a
the Treasury on a net basis.
matter of weeks. Naturally, I don't
Reserve officials seemed Jo be know whether it will do so or not.
concerned
jarger
net
holdings
the
over
Treasury
of
to
of And, in a very lew days the Treasabout... a .ury is expected to announce the
in -bank .terms on which it may raise about
inability
bring
contraction
securities. -$3.0 billion cash. This will bring
the debt quite close to the legal
Treasury
rpbe expansion in the private,loans
ancj investments of the banks ran
limit.
Of
course,
don't
I
action
Treasury's
cash
position
-
the-'Ury's offer could generate
showed,
continue To '
and
show very little change.
a
the
We
>
can
learn
a
lot by comparing
capital
-contemporary
,r
and
market
have fared well. All
feel better about the
credit
Now' we come back to the Re-' conditions in this country -with
serve- As I have indicated before, contemporary conditions elsethe primary concern of mo**ufc where and with, the way such
not all> Rcserve
Pe°Ple has *><*» lhin«3Rut.
have
worked out in lhe
i%i.+h
nm,c;ct„nflo nf {ho vioa
oversimplified romnarlwith the persistence of the rise
im-past. But. oversimplified comparlsons of trite generalities rarely
provide a sound premise for good
the guesses as to what the future will
in
living costs during the past year
or so, that is, with the
accompany-
ing
steady
deterioration in
of the doiiar.'
purchasing powct
hold.
Summary
:
•,
;
.
1
Hence, the Reserve has taken
The rise in interest rates thaT
Treasury debt, it acts as a kind of the stand, at least I think it is fair
forced savings program.
To the ^.o say this, that it would show no miay 01* may not have reached a
extent these redemptions are made favors to any source of credit de-r. crest during the past summer refrom the Treasury security hold- mand, that it could not do so. -'IT..fleets
an excessive demand lor
incs of the commercial banks the acknowledges a responsibility to capital and credit father than simbarks become either (1) potential See that the Treasury is able^to ply a too small accumulation of
buyers of other outstanding short- meet its financing requirements savings.
This excessive demand
term Treasury securities, the pur- but only at a price, the price to appears to have been compounded,
chase of which would release the be determined by the forces in the instead of enlarged, by an inequiproceeds for other purposes, in- market place. This, obviously,-has" table and irrational form of taxacluding the purchase of capital meant "at a price" set by such tion on American business opermarket issues, or (2)
the banks market forces after these have ated as a corporation. If we were
themselves are put into funds with been influenced by the needs of to approach the taxation of'this
which they may extend additional the Treasury and by a credit^.pol- -large sector of American business
credit to private borrowers, with- icy that has sought and still seeks in a more reasonable manner, in
out additions to the money supply
to oppose further increases in'liv- a manner more consistent with
is
used
redeem
to
publiclv-hcld
'
in either
'
-
our
ing costs.
case.
institutions
would
Saucering-Out Bond
Unfortunately, the condition of
the Federal budget began to deteriorate around the
this year.
was
first
beginning of
Concern over the budget
programs
called for
larger spending in
even
came^ncreasinslv
tone'erned^and"
_? ??_i
®
ad'
think the
— picture is about
—
we
4'Cturn on capital would not be
subject to federal corporate 111-
and I
as
heritage
that
payments
made from corporate profits as a
Prices ;
This brings us up to date,
and
provide
fol-
„
come taxes
lows: A much better sentiment
exists in bond market circles than
has been in evidence for quite-a
while. It arises, I believe, from a
kind of saucering-out that has developed in bond prices, despite a
fairly large flow of new security
offerings. It stems, too, from the
increasing signs of stress , and
strain that have shown up here
and there, a condition that is not
confined to the United States.
'
regaidless-of whether
Jhese payments were made in the
form ol dividends or interest.-If
were to undertake a major
change along such a direction we
could be certain that the "gmcer
ments now oxfeied business cot poralions to borrow for capital
.purposes-would be decreased. M
same time, the incentives to
raise, capital oy increasing equity
capital would be mcieaaed. So, the
Yet- 1 teel
the need for a blt
I don't like the feeling,
caution.
the
incentives for people to
an!
save
meas,-
the
that
ent
the
successful
capital
market flotations
of January and
early February had been brought
about
of
in
Dart
other drain
nosition
of
bv
savings^onds
on
drain.
-
reasons-
(lmle-101 theie x®880"8Still Bullish
oil
problems of the monetaiy and
~
.
Bonds
-
..
...
rash-Ins
This meant
an-
the Treasury's cash
non
a
large
aufie-^or" these
budget
source
Coincidentally, Federal
~
.
°ne' we. have
credit authorities would be vastly
deduced, and the chances o ou
maintaining
taken no '?eal -chasing
a
more
power for
stable pur-
the dollar ip
t0 bi ing ^government, spend- the: future would enlarge.
ing under control.
. ■
We have been through a rather
The cuts that
Congress madc were ummpres- ^tensive boom in business active
,
Tk(r
hold-the-line
eff r
ity. It looks as though the boom
getting tired. Interest rates-hit
is their peak for the boom period
cal year just ended (June 30,1957).
Borrowers and investors became
4heAdministration is making
iitterv
enough to generate confidence that' not have gone so high as they did
if business remains good we'll have if the Federal budget surpluses
or
new
The advance in the discount rates
to 3 V-> % proved to be anti-climac¬
capital
favor-
able buying opportunity.f
loans and investments of the
slve>
mature,
of
know
along, for the most part, at a re- what the Treasury will decide. The
duced rate compared with 1956-or talk, as is customary, covers just
j955^ but due to the pressure on -about everything. But the Treas-
-on sPending for fiscal
improve the sentiment
Treasury security market.
New
of
were
by the fact that the commercial
banks appeared to be about. the
(he
One of the results
sense
expressed
pattern of the budget for the fis-
helped to
tic.
could.
deter
badly if the
have
spending began to climb above the
two of which carried 4%
coupons,
the
folios
if
feel
caution I
that
Treasury issues offered last July,
in
than
banks
or
.
Vastly improved prospects for
a much
larger budget (and
cash) surplus are evident,
In
closing, let me s$y that I
(4)
would
banks
end.
an
_
another $2 billion more that it
was obliged to pay out on account
of attrition from its refunding operations.
Moreover, it was desirable to attempt to lodge this cashreplacement financing with other
commercial
a
signs of boom or boom
newed
expectancies,
and cash-ins of savings bonds and
the
to
Some decrease in living costs
actually occurs without re¬
(3)
as
lion or so. This was bad enough
but, in addition, the Treasury had
to find $2 billion of additional
cash to take care of maturities
to such
Ihe Reserves Pobcy works
debt
downward
or
additional
some
"permanent"
or
turned
lias
degree that a reversal in the
trend of living costs is assured,
well. Actually, the cash surplus
fell short of expectations by a bil-
yvhile money velocity remains so
high.
of
ward,
that the busiturned down¬
has
lacks
say
boom
tired. More uncertainties seem to
loom in the future than had been
true of the earlier years. The fa¬
vorable
amount
string
increases.
such
(2)
trend
ness
at about approxi¬
around the 1957 model level.
per annum rate of increase in
as
conviction
mary
their
clear
with¬
were soaring.
Stock prices
doing the same, and it looked
though this would continue.
Savings bonds were pretty much
were
made
that they
aroused by the Budget
Message submitted to Congress by
out
interruption.
We have no
the President last January.
The
shortages of materials or basic
idea that this country would rbe
commodities. We have either sur¬
spending roughly $72 billion for
pluses of capacity or of the mate¬
the fiscal year ending June, 1958
rials themselves.
Industrial pro¬
was, of itself, a shock. In addition,
duction, a s measured by the
is was clear from the budget deFederal Reserve Board
index, is tails that many of the
has
and
model year are unclear. Of
course,
most people expect sales to hold
Cor¬
and
have
recently
expected to be able to retire during the first half of 1957 tne temporary debt issued during the last
Treasury and the Budget
before
orders.
the
of
Treasury,
The Federal Reserve authorities
Picture
new
profits
condition
undergoes
slower pace
a
porate
taxes
the
at
cucities
cut ties,
at
were
manufacturers'
less
.
1 osition
Soviet's look at the attitudes of
Federal Reserve people and
extensions
was
or
the previous year and
_
Reserve
the'
lower. Consumer instalment credit
jumped
precipitously during
was steadily
moving into new high ground. In¬
ventories were
climbing, as were
more
'
.
turning
the shortages.
Yet, the Treasury paid only 2%%
for
one-year
money.
The 3s of
that period,
the Treasury bor¬
rowed money for one year at a 1995 were selling around 97 at the
cost of 2%.. At the same time, it end of July and around .95 at the
was
_
federal
the rate at which money
quite
bor¬
little
the boom. But
the fact is, just the same, that in
a dynamic phase of the boom the
Treasury borrowed for one year
steam.
of
the costs
believe they
now
the early stages of
tend
reduce
they
too
moved
mands for borrowed funds should
to
mer.
seeming
this
to
answer
anomaly
$4 billion at present levels of cor¬
into the picture. Deductions on ac¬
count of interest paid would be
a
rather than during the past sum-
cost for one year
between $2 billion and
run
2%
and to sell 3s of
100 successfully.
had been able to finance at
room
simultaneously
to
and
as
all fronts the Treasury nonetheless
(1) It is quite clear
half of 1956 plus
26,1957
Thursday, September
This impairment in the position
the Treasury was and still is
important. The Treasury had been
of
ing
The Interest Rate Outlook and
...
issues
told, people
outlook for
People
Investors
capital
rushed
would
steD
market
to
in
borrow
absorb
securities,
and
withdraw to await higher rates of
return.
market
The
was
Treasury
under
security
pressure
from
the capital markets, from the
cessity of the Treasury to
ne-
engage
in more than the usual number of
refunding operations, and from
the prospects of mounting Treasury
cash needs.
1958 that
comforting, but its far
]S
fromonly^recently. Interest rates would
tke kind of ^ede^al hf^et0 fur" bus been larger instead of being
Plus we 11 need to keep livm| (and
close to the token variety in
perhaps other) costsim hand. .
size.
•
Two, maybe I have become convinced at the wrong time, but it
seems to me it would be prudent
to go on the basis that the Reserve
may
ent
any
The impairment in tne casn p .sition ot the Treasury tnat Dega
.
fThe
several
Treasury
days
after
offering,
announced
Mr. Lanston's talk,
be unlikely to relax its pres- comprised a 4% J2-year
policy of credit restraint to
yec*rs* aendaa
significant extent until—
certificate—Editor.
bontp 4%
4^
ten-montu
Volume 186
Number 5676
.
The Commercial and
Financial Chronicle
.
.
(1359)
to
develop shortly after the
of
the
has not yet
year
paired.
This
turn
been
perhaps is the
discouraging part
lor interest rates.
the
of
Continued from page 5
re¬
1956
and
most
The State of Trade and
outlook
The Reserve
authorities have
bedn and remain
concerned about
the* persistent rise in
Industry
•
payments, the report declared. Most of the rest wa<5 in proprietors'
income, it added, with little change in returns from
partnerships,
dividends,, interest, rents and other types of personal income.
living costs.
Therefore, until
some
reversal
in
the trend of
living costs appears—
regardless of origin—and until the
prospects for an improvement in
the- Federal
budget
increase
*.
ma¬
count
degree of
ously.
laxatjon in F'ederal Reserve
credit
we endeavor to
guess
the near-term trend
of interest
rates,
on
more
bonds
quite
been
true
in
for
however, the Treasury's"
budgetary and cash position wor¬
a
of
bit; it induces in
caution
I'd
like
me
not
a
•
to
This could create
a
themselves
range
to
as
developments
lead
to
in
outlook.
is
ar¬
The
,
of
issue
•
of
and
are
John
T.
1, 1958.
priced at par
are
as
-
;
se¬
Crude
Petroleum
pi
3.80%
Jan.
2,
announced
debentures
1958
and
that
: 31,
maturing
$7,000,000
will
be
from
used to
000' of 37/a%
Oct. 1, 1957.
not
come
rise
and
there
makers have indicated
and
a
as
at
pace
the
vest.
least
machine
Major
tools
through
the
first
quarter
trouble.
Upward,
looking
such
for
the
rate
as
a
construction,
slightly better
each of these
rep¬
pronounce
oil inventories; were
estimated bv the Independent
Association of America, at
286,000,000 barrels on Aug.
with 282,000,000 barrels
of the
as
same
date
a
year
'
the
the
date
same
seasonal
petroleum inventories
April
IPAA
association
last year.
decline
forecast
Dec. 31,
on
level
stated.
,
expected
by
during the last quarter,
of this year may exceed
about
25,000,000
barrels,"
the
"
\
J
In the automotive
industry last week Chrysler Corporation
entered the ranks of 1958 model automobile
producers, signalling
the start of a return to work for thousands of Detroit
'
With Suburban Sees.
assembly
"
(Special to The Financial Chronicle)
workers who have been idle since late
August and early September.
"Ward's Automotive Reports" added that
despite Chrysler's
resumption, United States vehicle output will fall to 65,195 units
past week, including 52,141 cars and 13,054 trucks, the
smallest total Since the period
Sept. 24-29, 1956.
Last week's count of
102,593 units comprised 85,816 cars and
16,777 trucks.
'
Anthony
-Lombardo is now connected
with Suburban Securities
Co., 732
East 200th Street. He was
former¬
for .the
ly with Goodbody & Co.
,
-
"
Joins Merrill Lynch
(Special
toTii^FiNANCiAL
COLUMBUS, Ohio
Browne
is
Chronicle)
—
Lynch,
Pierce, Fenner
East Gay Street.
48
hands
Merrill
&
1957
unsold
.
With Dean Witter & Co.
A
the
models.
automobiles
company inventories, and
contradicts widely-published
earlier last week that the
stockpile of cars numbered
Co.y Equitable Building.
in
With Aim, Kane
Detroit, which concluded 1957
This
leaves
Ford
and
'*
(Special to Tee Financial
Chronicle)
CHICAGO, 111.—
Paul G. Sears
'
'
-
"j *
.7
"
^Special to Tke Financial
last week, with Metuchen, N. J., scheduled to stop this week.
1 "'American Motors is currently in its fifth week of 1958 model
programming, Studebaker in its fourth and Packard gets under¬
way. this week.
'
ChronicLe)
Jamieson
Joins
now
Co., Inc., Russ Building.
Irving Lundborg
(Special to The Financial Chronicle)
FRANCISCO, Calif.—
David R. Batv has been added to
staff
of
Irving Lundborg &
Coi, 310 Sansome
Street, members
of the New York and Pacific
Coast
Stoclc Exchanges.
.
-
The number of
tinued at
with H. L.
SAN
the
../
FRANCISCO, Calif.—Clif¬
ford L. Roberts is
production on Friday last.
Mercury divisions the only manufac-
Wayne, Mich., factories ended production
H. L. Jamieson Adds
SAN
model
turers still involved in 1957 model
operations. Ford will terminate
output this week at all plants.
Mercury's St. Louis, Mo., and
*
is wow With
Aim, Kane, Rogers &
Co., 39 South La Salle Street.
4
reports
728,500.
""Ward's" attributed the past week's swift
production decline
to a halt by all General Motors
plants except Chevrolet's Los
Angeles site, which worked Monday and Tuesday and Cadillac
PORTLAND, Oreg.—Robert D.
Skoch is now with Dean
Witter &
.
at
prevailing rate of sales. Practically the entire lot
Translated into volume, it signifies that 840,000
were
in showrooms on
Sept. 10, up slightly
from the 830,000 total of Sept. 1.
J.^his 840,000-unit figure is a breakdown of company-byis
Beane,
i (Special to The
Financial Chronicle)
publication noted that despite waning produc¬
tion, the number of new cars in dealer showrooms across the
nation stood at a 44.5-day supply on Sept. 10.
This means it
would take 44.5 days to exhaust the
supply of new cars in dealer
,
Joseph E.
with
now
The statistical
'
new
a
during August
year
ago,
Dun &
con¬
Brad-
street, Inc. states. The total for last month at 11,361 compared
with 11,339 last year, or an increase of 0.2%. It was down
2.8%
from the July count of 11,686.
.
The
period
decline
number
of
January through
of
4.1%
from
last year and was
parable
new
1955
concerns
August
the
listed
for
the
succumbed as in July. Casualties in
wholesaling surged
31% with most of the rise
concentrated in building materials
and general merchandise
trades.
Among retailers, mixed trends
prevailed between July and
August. While fewer food and ap¬
parel stores and restaurants
failed, tolls climbed in appliance and
automotive lines. All of
construction's upturn from the previous
month occurred
among general builders. Transportation accounted
nrincipally for the August increase in commercial
service. Neither
wholesaling or service had as many failures as a
year ago, but
tolls in other groups rose
above 1956.
There was a month-to-month
rise in all regions save the
Mountain States. Casualties in the East South
Central and Pacific
States rose
'
considerably with Tennessee
sponsible for these
com¬
during August rose to the highest level
They were 4% above the like month of
1,145.
and
The Pacific
Oregon largely
toll
reached
re¬
record
a
Contrary to trend in number of failures, their dollar liabilities
continued
to
downward
$43,500,000
in
for
the
August.
fourth
Most
of
consecutive
month, dipping
the
decline centered
groups where loses exceeded
$100,000 per casualty.
in
size
August building permit values continued to
show a slight
month-to-month gain, but for the sixth
time so far this year fell
below the level of the
comparable month a year ago, according
to Dun &
Bradstreet, Inc. The August total for 217 cities
including
New York amounted to
$563,014,478, a drop of 8.5% from $615,258.760 last year, but an
increase of 1.4%J above the July volume
of
$555,415,809.
New
York
City building permits 010110 in August
dropped
37.1% to $72,289,031, from
$114,957,757 a year ago, but showed an
increase of 116.7% above
the July figure of
$33,359,346.
Steel Production This Week
Scheduled to Yield 82.5%
Of Ingot
Capacity
This year will go into the record
books as the best in our his¬
tory for many segments of the
economy, "Steel" magazine declared
on
Monday of the
The
and
current week.
national
gross
$435,000,000,000,
product
4.3%
a
The first half hit
will be between
increase
over
$432,000,000,000
$434,000,000,000
$414,700,000,000 of
the
at
$435,000,000,000
annual rate third quarter
rate fourth quarter are
expected.
annual rate
an
and
and
a
$437,000,000,000
Metalworking sales, it
notes, will hit $138,000,000,000, up $2,000,000,000 from last
year's
Other forecasts by the
metalworking weekly include durable
goods which will wind up this year better than
they did last year:
Capital outlays for plant and
equipment, slightly above $37,000,000,000 ($35,080,000,000 in 1956); machine tool
shipments, $900,000,000 ($886,000,000 in 1956); railroad
freight car shipments, 99,000 plus (67,080 in
1956); agricultural machinery sales, 10% to 15%
over 1956's volume and
appliance production, 10% to 15% under
annual
a
1956's total.
Construction, it adds, will total $46,800,000,000 compared with
last
year's $46,100,000,000 and dollar volume will be
up, while
phyiscal volume will be down. Automobile production will be close
to 6,200,000 for the third best
year in history.
In 1956 it was
5,800,000.
j
Steel orders for
delivery in the fourth quarter may help the
industry to topple the 1955 record of
117,000,000 ingot tons. It
may be some time before the
industry has to operate at the un¬
usually high rates of the last couple of years because
capacity
is high enough to meet almost
any exigency, continues this trade
weekly.
Currently, automotive tonnage is swelling sheet order back¬
logs,
with
few
auto orders for November
shipment being re¬
producers of cold-rolled sheets are sold out for
October.
Mill sales managers think
they will have to push cus¬
tomers hard to get in heavy forward
tonnage.
Steelmakers also note a bit of an
upturn in demands from
ceived.
a
Some
the farm implement industry.
Purchases by appliance makers also
higher, though far from boom levels.
Except for heavy plates and wide flange structurals,
supply
shortages have about disappeared. Standard shapes are in easier
are
supply and light plates
are readily available.
Steelmaking operations declined for the second straight week,
easing a half point to 81% of capacity, equivalent to about 2,073,000
net tons of ingots and steel for
castings, or about the same tonnage
produced weekly from mid-July to mid-August.
The post-Labor Day
showing in steel production is disapoointing, but it is explained in part by labor trouble at several olants.
Failure of the steel rate to rise
sharply is responsible for the
continued slump in scrap prices. "Steel's"
composite No. 1 heavy
melting dropped for the fifth consecutive week. At $48.17 a gross
ton, down $2 from the previous week, it is at the lowest level
May.
'
since the end of
In the
-
.
nonferrous metals market,
copper prices are" showing
unexpected strength, raising hopes that the primary quotation of
27 cents a pound may not go lower.
.
The
American
Iron
and
Steel
Institute
announced
that
the
operating rate of steel companies, having 96.1% of the steelmaking
capacity for the entire industry, will be an average of 82.5% of
capacity for the week beginning Sept. 23, 1957, equivalent to
2,112,000
tons
of
ingot and steel
for
castings,
as
compared
with
82.1% of capacity, and 2,101,000 tons (revised)
a week ago.
industry's ingot production rate for the weeks in 1957 is
The
based
on
duction
annual
capacity
was
a
of
133,495,150 tons
month ago the
rate
as
was
of Jan.
1,
82.2% and
1957.
pro¬
2,103,000 tons.
A year ago the actual weekly production
"'aced at 2.502,000 tons or 101.6%.
The operating rate
is not comparable because capacity is
higher than capacity in 1956.
based
95,075.
This represented a
high for the period of 99,109
1.2% less than the 96,233 recorded in the
failures
advances.
high.
on
an
The percentage figures for 1956
are
annual capacity of 128,363,090 tons as of Jan. 1, 1956.
Electric Output Registered Further Modest Gains
In Latest
The
light and
Business
many
concerns
up
cumulative
period.
in three months et
any
year except March, it
continued considerably below
1940, Dun & Bradstreet, Inc.
reports.
Manufacturing failures rose noticeably in the machinery and
transportation equipment industries where
almost twice as
was
record
exceeded the prewar totals for
August in 1939
While the failure rate was more
severe than
in
For the like week
businesses chartered
slightly higher level than
a
slightly
this
that in
1956.
though
even
industries
are
sum¬
stiffening in their attitude
they are likely to main¬
a
result
pointing
are
moderate.
and
"Despite
debentures maturing
—
to
strike in the automotive industry next
a
deinands
is
compared
total
financing!
refund $148,350,-
CLEVELAND, Ohio
expectations.
are
hedge against possible labor
a
barrels from
the
J.
to
up
a
ago.*; Total inventories of crude oil and refined products at the
end of August were placed at
833,000,000 barrels up 43,000,000
of
3.90% debentures
maturing Feb.
3r 1958, were sold and
privately
placed.
Proceeds
hoped for
ready to
of
also
has
stockpiling of strategic
course.
Top mobilization officials
stockpiling dead yet, but there are
signs; it will shrink rapidly until procurement is limited to one
or two extremely scarce materials.
"not
outstanding maturities, $8,000,000
was
reflected
a
playing their inventories close
production
increase
are
a
It
sharp upturn
quickly in sharp
or
materials has just about run its
being offered throughKnox, fiscal agent, and
nationwide selling
group of
curities dealers.
*
deliveries
volume of physical production next
year and
resents sizable tonnages for steclj
--"The Iron Age" says that government
maturing July
The debentures
labor
chemicals
of
approximately T
$106,000,000 of
4.625%
ninedebentures, dated Oct. 1,
and
mill
demand
are
Housing starts
month
195.7
the
fast
1958
Federal
new
had
The auto
tain; a
Intermediate
Credit Banks
offered, on Sept. 20
a
users
possibility of
mer.
FIC Banks Place Debs.
The
Automotive
on
toward
<
in
factors in the market that add
up to continuing good business over the
long haul.
Some of them are the late introduction of
new
car models
which guarantees a strong
sheet, strip and bar market in the
last two months of this year and in the first
quarter next year.
a
way
measurable
rates.
stretchout
Meanwhile, "The Iron Age" says, the steel market outlook
disappointing, depending on how you look at it. Some
pessimism in steel is based largely on the short-term
rate
such
some
lowering of interest
manufacturing one line at about half
buying. Funny thing is, our sales are
stronger pick-up in September. Now
they are banking on October and November.
But "The Iron Age" adds that
everyone admits the market
has improved over the summer low
point. The steel operating
buy¬
could
"A
Other steel
ing; opportunity that would be
too
good to turn down,
particularly
sinee during the next
few weeks'
business
are
the
The" mills
the next few
days the
will raise some $3 billion
of cash.
balance.
of
over
Treasury
are
consumers
is good or
have.
But
our
will drop another 2,000 tons in the
we
general business levels will be
advances in customer buying rates."
ment,
me
way to a
We
in
a
sense
our
The metalworking weekly
says that many steel users
are
depending on quick delivery from the mills to keep their stocks
while.' I would like to feel
that way about
it, too. At the mo¬
ries
on
inventory and
months.
living danger¬
five-year inventory low. We have
are
picking up."
inclined to be bullish
has
are
our
two
the rate
be
than
We
halved
next
recognized, how¬
that many people have be¬
ever,
come
1
industry this week
A major appliance maker observes that "we
re-
policy when
should
steel
*
not
we
upon any substantial
It
1"
'
•
the
a
survey of metalworking
agents indicates that. steel inventory cutbacks are
but buyers admit they may be skating on thin ice
from an inventory standpoint. Reserves of steel in users'
hands
are low, "The Iron
Age," national metalworking weekly currently
reports.
or until business
activity
clearly has turned
downward, pru¬
.
I
-
purchasing
continuing,
terially
dence. requires that
t
In
and
1940.
month
43
1957,
was
amount
of
electric
Week
distributed by the electric
Industry for the week ended Saturday, Sept. 21,
estimated at 11,991,000,000 kwh., according to the Edison
energy
power
Continued
on
page
44
The
44
1Continued from page
Financial Chronicle
exclusively with Canada resulted in con¬
domestic grain prices. The most noticeable
declines occurred in prices of wheat, corn and soybeans.
Ihere
was
a fractional
decrease in oats prices.
Continued good crop
weather somewhat discouraged future buying of wheat, but trad¬
the future would trade
43
Thursday, September 26,1957
...
Industry
ing in other grain futures
the
improvement over the preceding week.
slightly
that
of the previous week and rose 509,000,000 kwh., or 4.4% above
that comparable 1956 week and 1,235,000,000 kwh. over the week
past week's output increased 44,000,000 kvvh., above
The
ended Sept. 24,
export and 16,000 for
Loadings for the
1957, totaled 741,147
Volume
amounted to about 2,545,800 bags,
bags of the corresponding 1956 period.
year
,
Favorable
resulted
Output Last Week Dropped to Smallest
U. S. Automotive
Since Sept. 24-29, 1956 Week, Due
1958 Model Changcovcrs
Automotive output for
Prices
to
the latest week ended Sept. 20, 1957,
week and
14,170
totaled
built last week
were
1,156 trucks in the like period
as
a year ago.
Shipments 4.0% Below Production in
Latest Week
Lumber
shipments of 487 reporting mills in the week ended
according to the
period, new orders
were 3.7% below production.
Unfilled orders amounted to 29% of
stocks. Production was 11.3% below; shipments 0.1% above and
new orders were up from the previous week and 4.4% above the
Sept. 14, 1957, were 4.0% below
National Lumber Trade Barometer.
production,
In the
same
Highest Level in 16 Weeks
preceding week, according to Dun
Bradstreet, Inc. At the highest level in 16 weeks, the toll was un
moderately from 262 last year and exceeded considerably the 171
&
were
also 20% more numerous than in the
prewar
Casualties involving liabilities of $5,000
The
or
more
rose
a
The toll
year ago.
among
small failures under
Twenty-one of the failing businesses had liabilities in
$100,000 as compared with 17 last week.
trade
suffered
excess
of
the
largest rise during the week, with
344 as against 107. Tolls were moderately heavier among manufacturers, up to 51 from 45, construction contractors, 45 from 40 and
service establishments, rose to 33 from 19.
On the other hand,
fewer wholesalers failed, 14 compared with 26 a week ago. While
manufacturing and retailing casualties increased mildly from last
year and
commercial service casualties climbed sharply, both
Middle
Atlantic
States
accounted
principally for the
rise; their toll mounted to 102 from 59 in the preceding
week. Moderate increases prevailed in four other regions, includ¬
ing the East North Central States where failures turned up to 42
from 34. Contrasting with the upward shifts, the South Atlantic,
East South Central, West North Central and Pacific States had
week's
lower tolls
than last week.
Pacific casualties
dipped to 67 from
Year-to-year trends were mixed, with five regions reporting
higher failures than a year ago, one holding even with 1956, and
three having slightly lower casualties.
76.
year
There
Fall
general downward movement in
many
and
in
cottonseed
wholesale
oil
cost
were
were
men's
ceeded those
will
known
Bank
First
the
as
of
outstanding 250,-
000 shares of $10 par
«»»
«v
V
V
stock,
V
«
First National Bank
The
capital
common
its
from
stock
$1,-
the sale
$1,800,000 by
500,000 to
in St.
increased
Fla.,
Petersburg,
Na¬
The new
Topeka.
have
will
bank
stpek effective Sept. 10.
(Number of shares outstanding—
new
360,000 shares, par value $5.)
F.
N.
Belgrano,
Chairman
and
President
Jr.,
Transamerica
of
Corporation, announced on .Sept.
16 the completion of a banking
by the corporation's big¬
banking subsidiary in Ari¬
He
said
Transamerica's
merger
gest
zona.
National
First
of
Bank
Arizona,
Phoenix, had acquired by merger,
effective
Sept. 16, The Bank of
Prcscott,
Ariz.,
with
Arizona,
offices,
banking
eight
all
in
communities
Arizona
northern
where the First National formerly
had
It
that state's oldest bank.
was
founded
was
Mr.
said the merged
resources of $265,000,-
has
funds in excess of
has 49 banking
capital
$20,000,000,
offices
ended
1% higher than
1877.
in
Belgrano
bank
000,
The Bank of Ari¬
offices.
no
zona
and
communi¬
Arizona
39
in
ties.
Transamerica's second bank¬
ing
subsidiary
the
Arizona,
in
Southern Arizona Bank and Trust
Company, Tucson, Ariz., had total
of
resources
of 1956.
$96,000,000 at the end
-
Directors of The First National
Bank
purchases of women's
Arizona,
of
Sept.
and most fashion acces¬
sportswear
named
13
tine, President.
week.
Mont
was
Phoenix,
on
Sherman HazelFormerly he was
a
year
was
ago.
-
was
country-wide basis
a
dent
i
period of 1956.
a
:
in
California
Bank,
Los
Calif., as a Vice-Presi¬
the city division, Frank
King, President, has announced.
Haas
had
been
associated
with the Northern Trust Company
since
1935.
Joins Illinois Mid Cont.
(Special to The Financial Chronicle)
Sept. 14,
CHICAGO, 111.—Charles F. San¬
born
is
now
676
with
Illinois
Investment
Continent
Mid
Company,
St. Clair Street.
A1 Rosen Adds
past week declined
(Special to The Financial Chronicle)
BOSTON, Mass. —Paul R. Mc¬
has
become
connected
Donald
with A1 Rosen & Co., 62
Eoylston
Street.
City for the weekly period ended Sept. 14,
In
With Smith, La Hue
1957 to Sept. 14, 1957, the
above, that of the corresponding
i •;
I
>
;
V,
(Special to The Financial Chronicle)
gain of .4%
i .i ■ i} « r
Minn.—John W. Otis
ST. PAUL,
For the period of Jan. 1,
recorded
Vice-
formerly
of
preceding week, Sept. 7, 1957, a rise of 5% was reported.
For the four weeks ending Sept. 14, 1957, an increase of 3% was
index
Haas,
stalf
Mr.
1957, decreased 4% below that of the like period of last year.
registered.
V.
*
Chicago, 111., has joined the
the
it stood at 300.03.
executive
chief
'
t*
pany,
L.
high level.
store sales in New York
daily wholesale commodity price index fell to 288.28 on
Sept. 16, with noticeable declines in prices of grains, livestock
and steel scrap.
The index a week earlier was 290.42 and on the
v
Angeles,
According to the Federal Reserve Board's index, department
The
bank's
the
John
no
Retail trade volume in New York City the
formerly
National,
First
President at Northern Trust Com¬
taken from
index for the week ended
the
named Chairman of the board
; *
.
as
of
officer.
steady during the week. Housewives were
in frozen foods, dairy products and fresh
on a
McMillen,
E.
President
6% to 8% under the level of the like period a year ago. Accord¬
ing to trade observers, unusually hot and rainy weather was
responsible for the poor showing at a time when sales are nor¬
Wholesale Commodity Price Index Registered Noticeable
Declines in Latest Week
Topeka.
be
tional
change from the like period last year. In the pre¬
ceding week, Sept. 7, 1957, a gain of 1% was reported. For the
four weeks ended Sept. 14, 1957, an increase of 2% was reported.
For the period Jan. 1, 1957 to Sept. 14, 1957, an increase of 2%
was registered above that of 1956.
rye,
by the United Kingdom that British millers in
and
Federal Reserve Board's
mally at
Announcement
of
interested
1957,. showed
level.
a year ago
in
Volume in dresses
Department store sales
the
foodstuffs and meats in general use and its chief func¬
to show the general trend of food prices at the wholesale
comparable date
of
Central National
The new bank
and
Topeka
produce. The call for fresh meat, canned goods and baker goods
slipped somewhat.
raw
tion is
of
stores reported a
buying
primarily
higher the past
corn,
approved by the
stockholders of the National Bank
substantial gain in sales, but in¬
terest in linens and draperies advanced fractionally*
Volume in
floor coverings slackened. Decreases in purchases of refrigerators
and
automatic laundry equipment held total
major appliance
volume close to that of both the prior week and a year ago.
Another rise in sales of new passenger cars occurred, boost¬
ing purchases so far in September slightly over those of last year.
The total unit volume in August was 2% higher than in the similar
1956 month, while dealer inventories on Sept. 1 moderately ex¬
foodstuffs last week
quoted
appreciable decline
suits.
furnishings
Furniture
Sharply Lower
wheat,
i*.
ff
sj:
A merger was
and
barley,
beef, hams, bellies, lard, butter, sugar, cocoa, eggs, steers and hogs.
The index represents the sum total of the price per pound
of 31
$334,374.
suits.
in a sharp dip in the Dun & Bradstreet wholesale food
index.
The number declined to $5.24 on Sept. 17, after
holding at $6.32 during the three preceding weeks. Although the
lowest in 11 weeks, the current figure is still 3.0% above the com¬
parable 1956 level of $6.06.
Lower
value of $20
each; surplus of $600,000; and un¬
divided profits of not less than
President of the Bank of Arizona.
resulted
Only flour
$600,000,
Although the call
sustained at a high
point, interest in suits was sluggish.
Best-sellers in children's
clothing were boys' sports jackets and sweaters and girls' snow-
for
price
week.
an
was
coats and
sories remained at the level of the prior
Level in Past Week
A
of
stock
stock of the par
mon
ago,
Food
Wholesale Food Price Index Reacts to
capital
divided into 30,000 shares of com¬
.
wholesaling and construction dipped below their 1956 levels.
The
have
according to estimates by Dun & Bradstreet, Inc.
Regional estimates varied from the comparable 1956 levels by the
following percentages: West North Central, West South Central,
Mountain and Pacific Coast 0 to +4; East North Central —1 to -f-3:
South Atlantic —4 to 0; Middle Atlantic and East South Central
—5 to —1 and New England States —9 to —5%.
a
$5,000, increased to 50 from 29 in the previous week and 34 in 1956.
Retail
At the effective date of consoli¬
Slight
of retail trade in the period
dollar volume
total
Wednesday of last week was from 3% below to
on
to 237
moderately higher than the 228 of this size in
were
the similar week
com¬
1939 when 239 occurred.
loca¬
State
Hutchinsosn
The
of
dation the consolidated bank will
Fall
in
the .consolidated
of
Bank.
discouraged consumer
apparel last week, and volume dropped moder¬
ately below that of a year ago. Sales of furniture rose somewhat,
but the buying of major appliances and housewares held close to
that of the preceding week.
Total retail sales fell moderatelv
below those of a week earlier, and were slightly under the similar
1956 levels when consumer buying was at a high point.
interest
ended Sept. 19 from 237 in the
from 208 and
a
The
Company."
Trust
bank will be at the present
tion
of
Registered
Decline Below 1956 Level
Commercial and industrial failures climbed to 287 in the week
Failures
office
Unseasonably hot and humid weather
Business Failures Advanced to
in 1955.
and
main
prices fell moderately at
cotton
Trade Volume in Latest Week
like week of 1956.
parable week of
occurred.
the beginning of the
week, they revived somewhat at the end of the period. Much ol
the early decline was ascribed to a larger than anticipated crop
forecast. Government officials on Sept. 1 expected a crop of about
12,713,000 bales, up 800,000 bales from the Aug. 1 forecast. Reports
of less favorable weather in growing regions helped prices climb
somewhat at the end of the week. The New York Cotton Exchange
estimated the domestic supply of cotton staple for the current
season at approximately 23,600,000 bales compared with 27,600,000
last season. Exports of cotton for the week ended on Tuesday of
the preceding week were estimated at 71,000 bales as against
40,000 a week earlier and 122,000 in the similar 1956 period,
according to the New York Cotton Exchange. Total exports for
the season to date totaled about 416,000 bales compared with
573,000 in the corresponding period last year.
While
compared with 1,698 cars and 1,012 trucks in the preceding week
Lumber
preceding week, they were appreciably,
Saleable supplies of cattle in Chicago
prices on the Chicago Board of Trade
below that of the previous
750 trucks
levels so
week since Mid-May and were close to
those of the similar 1956 week. Trading was sluggish and prices
fell moderately. Both trading and prices on lambs were sustained
at the level of a week earlier. A noticeable decline in lard futures
and 14,170 trucks were assembled.
Canada, 2,000 cars and
last fell to the lowest
attributed to an increase in hog receipts
While hog receipts in Chicago were moder¬
was
National
"Hutchinson
Bank
the highest for any
were
by 33,675 cars, while truck output decreased by 3,723 vehicles
during the week. In the corresponding week last year 35,652 cars
In
title
under
and
Hutchinson
of
Bank
the
below those of a year ago.
week
and 1,740 cars and
This
decline in trade.
a
Banks & Bankers
Bank
ately higher than in the
52,141
output declined
car
trade
export
lagging
and
estimates were higher than antic¬
Hog prices the week before
and
ago.
year
a
week's
Last
output
on
far this year.
units and compared
with; 85,816 (revised) in the previous week. The past week's
production total of cars and trucks amounted to 65,195 units,;,
or a decline of 37,3.98 units below that of
the preceding week's
output, states "Ward's."
Last week the agency reported there were 13,054 trucks made
in the United States. This compared with 16,777 in the previous
car
from page 18
News About
moderate
a
ipated.
model xthangeovers.
for. 1958
week's
Last
conditions
growing
arrivals so far this
sharply below the 3,170,470
decline in cottonseed oil futures prices.
both cottonseed oil and soybean oil dipped as govern¬
in
soybean and cotton crop
ment
according to "Ward's Automotive Reports," declined to the smallest
volume since the Sept. 24-29. 1956 period as the result of factory
shutdowns
rise in coffee futures
Total United States
bags the week before last.
decrease of 79,702 cars, or 9.7% below the corresponding
week and a decrease of 76,087 cars, or 9.3% lower than the
1956
in Louisiana
Brazilian exporters limited, cocoa prices
climbed somewhat during the week and trading rose appreciably.
Warehouse stocks of cocoa in New York fell 3,614 bags to 344,653
a
corresponding week in 1955.
occurred and
With supplies among
above the preceding holiday week,
week ended Sept. 14,
Good progress was reported in rice harvesting
A slight decline in sugar futures prices
purchases slackened. Wholesalers reported a
prices and trading improved substantially.
the Association of American Railroads reports.
cars,
continued to
little change in rice
was
and Texas.
Loadings of revenue freight for the week ended Sept. 14, 1957,
by 95,029 cars, or 14.7%
domestic use.
prices as trading
There
1955.
lag.
rose
below those of the prior week. Flour receipts; at New
terminals amounted to 38,878 sacks with 22,878 ioi
York railroad
Loadings Gain Ground in Post Holiday Week
Rising by 14.7%
Car
picked up moderately.
buying of all types of bakery flours was sluggish during
week as most buyers had ample stocks.
Flour prices fell
The
Output the past week enjoyed further modest
Electnc Institute.
Continued
siderable declines in
The State of Trade and
u
Commercial and
(1300)
.
has
T
o
joined
Una
9r
the
(~*r\
staff
of
Smith,
DiAncpr "RiiilHinf*.
.Volume 186
Number 5676
Continued
from
page
.
.
.
The Commercial and Financial Chronicle
(1361)
Government
14
tools
stepped
in and
bad situation—but I am
proud of the fact that we avoided
problems.
bringing
Step.
helped
trols
a
producers
that
could
under
have
Now
con¬
had
The Farm
of
the
private economy — not
through regimentation and control
farm
of
families
the
govern¬
the framework
of these
by
been flooded.
Within
objectives there
great
are
oppor¬
tunities for government to extend
assistance
to
farmers,
to
con¬
tribute
to
price
stability, to aid
expansion of markets, to
the
forward
carry
research
families
their
as
effective
partner.
That is the program to
which your Department of Agri¬
culture is dedicated.
My
personal effort is
directed toward making further
improvements in the agricultural
situation, both for the present and
every
The
for
prospects
encouraging,
are
which
reasons
would
I
like
to review.
Encouraging Prospects
(1)
Farm income is increasing
for the second consecutive peace¬
time year—-the only such increases
since 1947. Figured on a per farm
basis,
1956
increase from 1955 to
the
7%.
was
(2) The index of farm prices
has risen three points during July
and
point during the past
parity
ratio index
points, during this period
one
month.
The
f
two
rose
and stands at
84.
to be
excellent.
he
claim
can
with the
special
influence
weather man.
Livestock Improvement
Another
ment is
for
improve¬
credit to farmers
reason
mainly
a
themselves. It is that the livestock
situation is much
Cattle
and
prospects
the
months
hog
ahead
income
livestock.
hogs
are encouraging,
outlook
for
the
63%
of
is
With
the
agri¬
derived
from
both
cattle
and
the
improvement has fol¬
lowed
from
adjustments
made
primarily by farmers themselves.
Unrealistic slaughtering quotas
during the
tion for
In
1953
later date.
a
again in 1956
declined
volume
the founda¬
cattle at
and
prices
laid
war
more
under
cattle
heavy
In each
a
of
marketings.
developed for price
supports on live cattle.
In the Department of Agricul¬
ture we took the position that
such supports would have led to
case
pressure
controls
cattle
over
and indications
producers—
would have disrupted the market
for beef
and would have lost
The index of prices received
by farmers is at the highest level
since August, 1954.
^
(4) Farm assets are at an all-
Instead
ary.
time high and farms have only $12
in debts for each $100 of assets.
of
price
operated with
tensive
chases
a
,
.
supports,
;
.
pres¬
we
co¬
in
in¬
cattlemen
sales
launched
.
bowing to the
for
sure
promotion—we
of beef
program
pur¬
and
diversion, of emer¬
credit, and of drought re¬
gency
Farm
1
customers.
ownership is at a record
lief.
only one out of three
Cattlemen kept their freedom.
farms has ai mortgage.
Markets
expanded.
Prices
re¬
(5) Exports of farm commodi¬
covered.
ties totaled $4.7 billion in fiscal
Now we are in a cyclical de¬
1957 and are at an all-time high
crease
in
cattle
numbers.
The
in both quantity and value, which
calf crop this year is down 2%
establishes
foreign
markets
of
from last year.
Barring renewed
great benefit to American farmers
for many years to come. This was drought, beef supplies per capita
,
.
high
and
16%
above
1952, which was our
high and which came
previous
during the Korean conflict.
Wheat exports during 1956-57
marketing
year
climbed to
Surplus
of
holdings
Com¬
several
On
this
months.
winter of
Family
(7)
continue
farms
to
dominate the agricultural scene as
largescale farms are about 4% of
all
commercial
same
as
30
farms,
years
about
this
under
months.
1955-1956
disastrous
a
that
brought
in
prices.
decline
Many producers no more
got back their feed costs.
Soil
has
increased
Conserva¬
37%
and
similar increase
In
those
prices
now
main
above
tense
put
pressure
support
and
get
was
prices
in¬
developed to
on
government
live hogs
to control
production.
in
practices undertaken through
There were
some
who main¬
Agricultural
Conservation tained that
farmers could not ad¬
Program.
just hog numbers without gov¬
(9)
The
Rural
Development ernment
regulation — and
some
Program is underway in 24 states who
said that farmers would pro¬
and is being expanded.
duce even larger numbers of hogs
(10) The Soil Bank has done an
in a desperate effort to survive.
effective job of reducing surpluses
We do not accept this view.
I
and supplementing farm income,
in addition to conserving soil and opposed direct price supports for
water resources for future needs. hogs, just as I have for cattle—
the
(11)
$157.3
Farmers' net equities of
billion on Jan. 1 this year
at
all-time
high—up $8
earlier, and
up $6.6 billion f^m the previous
high on Jan. 1, 1952.
were
billion
I
do
an
from
not
a
year
minimize
the
difficul¬
ties which farmers face. But these
are
strong
points
in the farm
picture—points often overlooked
—points in which farmers and this
Administration can take a good
measure
of pride and assurance.
On
man
us
be
a
national basis, the weather
dealt more kindly with
has
than in other recent years. To
sure,
some
areas
still
have
and
for
the
same
The
reasons.
outcome proves we were right.
The
things
reason
in
the
is
I
will
name
of
not
do
helping
farmers that actually would work
to their disadvantage, and be a
disservice to them.
sure
for
bowing to the pres¬
price supports on hogs,
again worked with producers
in an intensive campaign of pork
we
promotion, and
chase
and
Consumers ate
ers
cut
and the
proved.
a
temporary
diversion
more
production
pur¬
program.
pork.
Farm¬
voluntarily —
price of hogs sharply im¬
dis¬
we
results
same.
the
in
any
volume
one
of
a
and
per
weight
means
come.
But
a
year,
production
level,
bushel
per
12
always will be
higher price
hundred¬
bigger farm in¬
this
does
not
argue
to help farm fam¬
ilies is to fix high prices per unit
be
for
way
what
they raise. Farming is
not just a one-year business.
If over a period of
years, an
artificially high price causes buy¬
ers and
consumers, both at home
and abroad, to turn to other prod¬
the
corresponding
ago, at least
through the first half of 1958.
What happens then is up to ucts or other sources of
supply—
producers. The hog-corn ratio has and thereby drives our products
of
seasons
a
year
m
been
above
since
13
last
De¬
into
bins and
government
houses—
cember, and in July reached 15.7.
...
:
V
.
ware¬
high has usually been T and then forces controls on
by a rapid increase in what farmers can raise and sell—
and markets become disrupted
production.
followed
Thus
would be
If
the
normal
more
pigs next spring.
expansion is moderate,
additional
hogs still could
the
profitable price.
a
'
.
On the other hand, a large in¬
;
in
farrowings next spring
in a disastrous drop
in prices a year from this fall.
crease
could
result
^
emphasized
too
is
want to
I
this
at
Soil
up
take
point
Bank
credit
strongly.
What
to producers to
few moments
a
to
stress
deserves
the
for
that
the
considerable
progress
we
are
making.
lion
and
three-quarter mil¬
wheat-allotment
acres
were
in the Acreage Reserve this
year.
Those acres, at the average
put
yield this year in the states where
they are located, would have pro¬
duced another 230 million bushels
of wheat had
they not
gone
in the
grain
sorghums,
Without
would
It
come.
come—
harvest
barley,
or
lower
means
and
farm
in¬
who favors
a
scheme may think he is
helping farmers. But he isn't.
anyone
such
The facts of
Facts
the situation
with
which
we
(1)
great
We are in the midst of
scientific and mechanical
living
are
are
these:
changes
in farming. With these
changes in methods, our agricul¬
ture can produce in great abun¬
dance—and
the
that
no
are
production con¬
acceptable within
framework
political
system
American
the
of
to
appear
be
capable of turning off this abun¬
dant production.
1
(2) This being the case, it is
clearly impossible to price farm
products
as
though they were
SC3rC6
lows
that
farm
policy
grams
must recognize
dance
of
and pro¬
the abun¬
output—must
our
pro¬
vide price
the
have
Soil
Bank
an
increase
had
we
in
wheat carryover this year instead
of a decrease.
do
not
supports at levels that
interfere
with
farming
That
run.
is
but amply
a
bold
statement—
justified.
combination
The
of
flexible
I commend this whole matter to
most
our
In
serious
consideration.
representative
a
in¬
privilege
of
Light
(Sept. 25) headed
derwriters
a group of un¬
offered publicly
that
400,000 shares of Utah Power &
Light Co.
common
stock
(par
$12.80) at
a
price of $23
share.
per
The group was awarded the stock
at competitive
sale
Sept. 24
share.
on
a
bid of $21,659 per
Net proceeds from the sale of
the stock and from a concurrent
sale of $15,000,000 in first mort¬
bonds will initially
of
the
company's
gage
part
funds and
to
as
become
general
such may be applied
of its corporate purposes,
\ capital
expendi¬
any
which./, include.
tures
for
ently
construction.
planned,
of
program
the
As
pres¬
construction
the
company land its
subsidiary for 1957-59 inclusive
will require about
$46,000,000.
*
Utah Power & Light is a
utility
operating
Idaho,
government,
in
southeastern
northern,
central
and
southeastern Utah and southwest¬
ern
Wyoming and is also a reg¬
istered public utility holding com¬
It provides electric service
in its territory and to a limited
pany.
extent
it
provides
central
steam
heating service in the commercial
district
of
Salt
Lake
City.
Its
operating subsidiary, The Western
Power
Company,
sup¬
plies electric service in the south¬
western portion of Colorado.
;
For the 12 months ended
May
31,
1957,
operating
revenues
of
the
company amounted to $42,101,000 and net income to $7,725,000, equal to $1.74 per share, com¬
pared with operating revenues of
$41,289,000 and net income of $7,-
526,000
or $1.70 per share for the
calendar year 1956.
A quarterly dividend of 30
cents
per share will be paid on Oct. 1
to
stockholders of record Sept. 3.
Two With
Reynolds
(Special to The Financial Chronicle)
SAN
.
FRANCISCO, Calif.—John
Van R. King and John A.
Menaglia
have
become
associated
with
Reynolds & Co., 425 Montgomery
Street.
efficiency—and must, in all pos¬
to expand the
for our prod¬
ucts.
The problem of surpluses—sur¬
pluses that have gotten worse and
worse
for years—is now on the
re¬
Blyth & Co., Inc., Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane yesterday
With Sutro & Co.
sible ways, move
markets available
the Run
on
and
Common Stock Offered
'
And from this fact it fol¬
(3)
part
Utah Power &
Colorado
Presents
Reserve.
Or, had they
been planted to wheat they
not
depressed by
build-up of surplus—
then the artificial support price
does not mean higher farm in¬
trols
Twelve
become
•
This risk and danger can not be
will happen
decide.
prices
the
the
bring
and
response
accept the
sponsibilities -which are the
public
A ratio this
(Special to The Financial Chronicle)
SAN FRANCISCO, Calif.—
Stephen A. Netherton has become
connected
with
Montgomery
Sutro
Street,
&
Co., 460
members
of
what
the
our
rests
in
fam¬
Stock Exchanges. He was formerly
with Hooker & Fay and
Brush,
the
ultimate
decision
as
to
farm programs will be
farmers' hands, as farm
New
York
and
Pacific
Coast
Slocumb & Co.
ilies.
We
supports, massive disposal efforts
can
go
on
to
build
a
still
more
progressive and
dynamic
Copley Adds to Staff
agriculture—expanding, free, and
(Special to The Financial Chronicle)
prosperous—for
this
generation
And the
improved outlook has
and for the young people who
COLORADA SPRINGS, Colo.—
contributed greatly to the better
will
follow
us—an
agriculture John J. Firlit is now with Copley
balance of supply and demand—
geared to serving the expanding
and this in turn to the improve¬
and
Company, Independence
markets that can open to it, here
ment in prices you are receiving
and abroad—an agriculture char¬ Building.
and will receive.
acterized by opportunity, rather
Another chapter
in the con¬ than one dictated and stifled and
Two With Ladet, Steele
tinuing debate on farm policy
regimented by the heavy hand of
now lies ahead of us.
(Special to The Financial Chronicle)
government.
The Agricultural Acts of 1954
In this setting government can
DENVER, • Colo. — Charles W.
and 1956 did much to correct a do much to
help, with realistic McCune and Martin B. Morfeld
bad situation.
They were essen¬ levels of price supports and other
are
now
connected
with Ladet,
tial legislation to bring about a devices which do
promote stabil¬
Steele & Mohar, Inc., First Na¬
first step along the road from a
ity without limiting opportunity.
and
the
Bank
contributions
have
controlled
Instead of
raised
moved.
as
hav$
we
law
not mod¬
are
soon
as
Obviously,
but hog
likely to re¬
seem
Surpluses Are
months
the
be
than
Outcome
difficult
to
other crops.
to hog producers.
up
'Proud of
the
a
pri¬
which the
—
of
is
can
can
to
true
Two
that the
course
old
stand, require
are
heritage
being free people.
of Surplus Number One.
Surely we do not need end¬
lessly to repeat an experiment in
.
of
the
.
escapable
pose
Future Hog Prices
fluctuations
in
now
If these formulas
that
reason
fairly favorable hog prices
for the next 10
expected,
,
the great
from
away
surpluses
at any given
the
would have added to the
be
as
is
brighter. Whether
the
Administration
there has been
even
soon
Number
fall crop
a
they
with
Seasonal
■;
_
ified, the stage is set for Surplus
expected
Acreage
Certainly
farmers
remember
the peak of hog numbers in the
ago.
(8) Participation by farmers in
programs of
tion Service
to
improve further.
continues
marily
Credit
likely
are
shorter time basis the hog
a
picture is
Corporation have
been
reduced by approximately
one-sixth
during
the
last
16
modity
years
should
men
all-
an
time peak of 547 million bushels.
(6)
for
for
formulas
with
received from the generations be¬
fore us, willingly
next
a
.
move
as
Current steadiness in
production
.
hold below the peak of 1956, and
the economic position of cattle¬
are
should
which,
have
only 2%. A determined effort
by producers is indicated to level
out production—in sharp contrast
with large cyclical ups and downs
past.
V.
,
mixed
as
up
in the
■
surplus
price support levels to be
spring pig crop this year
unchanged from a year ago,
—
(3) Prices farmers receive have
increased each month since Febru¬
was discretionary, tem¬
flexible—and successful.
sharp contrast with other
mandatory and rigid—and
problems unsolved.
was
•.
We
was
left
is
where
that
support programs that have been
bright. This is
important
in
South
especially
Dakota
favorable.
more
aid
The
should take
credit for this improvement unless
cultural
the future.
other natural
yields on the
I doubt that anyone
problems—in short, to work with
farm
crop
whole promise
farm
on
But
or
porary,
It was a
*
with
ready for
are
Wants Formulas Changed
government
provided
Some families have
experienced hail,
disaster.
ment.
in
Policy Debate
inadequate moisture—others have
dealing
we
only
disastrous results.
The
for
45
turned
the Soil
of
the
agriculture
corner.
to
a
free
Government
1954
partner with farm
families—but I am dedicated, as I
certainly believe most of us are,
agriculture.
The
tively
Agricultural
reestablished
the
Act
of
of
price flexibility — without which
production
and
consumption
never could be brought into bal¬
ance, or
kept in balance.
ricultural
the
in
principle
Act
of
1956
ground gained in
addition, provided
The Ag¬
defended
1954,
and
necessary
to
the
must
as
can
function
effec¬
principle that government
never
tional Bank
Building.
a
be
our
master.
May God grant us the wisdom,
faith, and courage to see and be
guided by the opportunities that
lie beyond and around our prob¬
lems.
And may we, in keeping
Joins Dale Hill
(Special to The Financial Chronicle)
PUEBLO,
Colo.
—
Leo J. Mc-
Carty has become affiliated with
Dale R. Hill & Company, 114
Nmth
with
Street.
He
Carroll &
was
Co.
West
previously
Financial Chronicle... Thursday, September 26, 1957
The Commercial and
(1362)
46
if INDICATES
Securities Now in Registration
Canada Mortgage
Distributors, Inc.
Akin
(letter of notification) 90,000 shares of class A
stock, 90,000 shares of class B common stock
and 25,000 shares of preferred stock (all of $1 par value).
Price—Of class A and class B common, $1.50 per share;
and of preferred, $1 per share. Proceeds—To retire bank
loans and for working capital. Office—718 South Bould¬
Aug
2
common
er,
Tulsa, Okla.
Underwriter—May be Walston & Co.,
Tulsa, Okla.
if Allstate
*
,
Commercial Corp., New York
(11/14)
A common stock
(par one cent), of which 233,000 shares are to be sold
for account of the company and 23,300 shares for the
account of Ben Degaetano, President of the underwriter.
Price—$1.50 per share. Proceeds—For working canital
to be used in realty financing activities.
Underwriter—
filed 256,300 shares of class
Sept, 16
Inc., New York.
Midland Securities,
Income Fund,
American
Inc., New York
May 24 filed 500,000 shares of capital stock
Price—At market.
Proceeds—For investment.
Under¬
Burton H. Jackson is President. Invest¬
ment Adviser — Securities Cycle Research Corp., New
York.
American Provident
Feb. 15 filed
Proceeds
—
Underwriter—None.
Caramba Mokafe Corp. of
Investment Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
offered in units of $100 of bonds and 10 shares of stock.
Price—$100.50 per unit. Proceeds—For purchase of first
mortgages or to make first mortgage loans and for con¬
struction business.
Office—Miami Beach, Fla. Under¬
writer—Aetna Securities Corp., New York.
Mortgage &
Central
Century Acceptance Corp.
(10/9-10)
9 filed 100,000 shares of cumulative preferred
stock, 70-cent convertible series (par $5). Price—$10 pei
share.
Proceeds—For working capital. Office—Kansas
Sept.
Co., Chi¬
City, Mo.
stock (par one
Chatham Oil Producing Corp.
cent); Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex.
Underwriter—Peoples Securities Co., J. D. Grey,
July 29 (letter of notification) 100,000 shares of 19 cent
non-cumulative convertible first preferred stock
(par
of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
opment operations. Office—42 Broadway, New York 4,
N. Y. Underwriter—G. F. Rothschild & Co., Inc., New
Orleans, John S. Tanner,
of New
Apache Oil Corp.,
Chesterland, Ohio
Sept. 13 (letter of notification) 30,000 shares of common
stock (par $1). Price — $10 per share. Proceeds — For
payment on land contract, additional space, equipment
and working capital. Office—Wilson Mills Road, Ches¬
terland, Ohio.
Underwriter — L. B. Schwinn & Co.,
Assembly Products, Inc.,
Cleveland, Ohio.
Atlanta Gas Light
(10/15)
Co.
first mortgage bonds due Oct.
1, 1982. Proceeds—To repay bank loans. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Equitable Securities
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); The First Boston Corp.; White, Weld & Co.
and Kidder, Peabody & Co. (jointly); Shields & Co.,
Blair & Co. Incorporated. Bids—To be received up to 11
a.m. (EDT) on Oct.
15 at 90 Broad St., New York, N. Y.
^Blacksmith Shop Pastries Inc., Rockport,
Mass.
$100,000 of 6V2% deben¬
due Sept. 15, 1972 and
40,000 shares of capital stock (par $1) to be offered
in units of one $50 debenture and 20 shares of capital
Sept. 17 (letter of notification)
tures dated Sept. 16, 1957 and
stock.
Price—$90
unit.
per
gage notes and for working
& Gould, Salem, Mass.
.
Proceeds—To retire mort¬
capital. Underwriter—Mann
July 25 filed $360,000 of participations in partnership
interests. Price—$10,000 each participation (minimum).
Proceeds—To buy an apartment building. Underwriter
—None.
Edison
Co.
(10/23)
Sept. 18 filed 30,000 shares of cumulative preferred stock
(par $100). Proceeds—To repay bank loans and to ac¬
quire securities of Montaup Electric Co. Underwriter—
To be determined by competitive bidding. Probable bidbers: White, Weld & Co. and Shields & Co. (jointly);
Stone & Webster Securities Corp. Bids—Expected to be
received up to
11
a.m.
(EDT)
St., Boston, Mass.
Brockton Edison Co.
on
Oct. 23 at 49 Federal
18
shares of common
cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co., Inc., 160 Broadway, New York.
Cincinnati & Suburban Bell Telephone
filed
(10/8)
Sept. 16 filed 200,000 shares of common stock (par $20).
jPrice—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for construction program.
Under¬
writers—Blyth & Co., Inc. and The First Boston Corp.,
both of New York.
California Oregon Power Co.
(10/14)
Sept. 16 filed $10,000,000 of first mortgage bonds due Oct.
1, 1987. Proceeds—To repay bank loans. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders:
Halsey, Stuart & Co. Inc.; Shields & Co.; Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody &
selling
Proceeds—To
&
stockholders.
Co., Inc., New York. Statement
effective Aug. 10.
Columbia
Gas
System, Inc.
(10/3)
Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EDT) on Oct. 3.
.
construction
program.
.
Proceeds—To repay bank loans and for
York.
,
,.r\
.
•
Columbus
&
Southern
Ohio
amend¬
construc¬
Underwriter—Morgan Stanley & Co., New
if Continental
i
-
,
Screw Co., New Bedford, Mass.
(10/14-16)
Sept. 24 filed 300,000 shares of common
Price—To be supplied by amendment.
stock (par $1).
Proceeds—To¬
gether with funds from sale of $1,500,000 6% bonds (with
stock purchase warrants), to purchase assets of old
Massachusetts corporation and of Hy-Pro Tool Co. Un¬
derwriter—Lee Higginson Corp., Boston and New York.
Cougar Mine Development Corp.
March 15
mon
stock
Proceeds
(letter of notification) 560,000 shares of cowi(par one cent). Price — 50 cents per share.
For diamond drilling on company's lands,
—
prospecting expenses, working capital and other corpor¬
ate purposes.
Office—83 Campfield St., Irvington, N. J.
Underwriter—Roth & Co., Maplewood, N. J.
...
Daybreak Uranium, Inc., Opportunity, Wash.
631,925 shares of common stock (par 10
— At market
(approximately 53 cents per
Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.
May 7
cents).
filed
Price
DeLuxe Check
Printers, Inc.
-
Aug. 28 (letter of notification) 25,000 shares of common
stock (par $1) to be offered to employees and present
stockholders. Price—$11.80 per share. Proceeds—To ac¬
new
machinery and equipment. Office — 530 N.
St. Paul 4, Minn. Underwriter—None.
.
Wheeler St.,
if Durox of Minnesota, Inc., Denver, Colo.
Sept. 23 filed 750,000 shares of common stock (par $1).
and
working
Proceeds—For capital expenditures
capital.
Business — Building material.
Underwriters, Inc., Englewood,
Underwriter—American
if Eaton Factors Co., Inc.
(letter of notification)) $300,000 of•■9.6% fivedebentures. -Price — At par (in denominations of
$500, $1,000 and $5,000). Proceeds—For working capital,
etc. Office—475 Fifth Ave., New York 17, N. Y. Under¬
Sept. 23
year
writer—None.
"
.
Empire Sun Valley Mining Corp.
Aug. 9 filed 340,000 shares of common stock,-of which
200,000 shares are to be publicly offered at $3 per share
and 140,000 shares to stockholders of Sun Valley Mining
Corp. at $1 per share. Proceeds—For exploration and
acquisition of mines; and for working capital. Office—
Jerome, Idaho. Underwriter — For public offer, John
Sherry Co., New York.
}
Colorado Springs, Colo.
Aug. 23 filed 500,000 shares of common stock {no
Price—$2 per share. Proceeds—To pay off note,
chase equipment
par).
pur¬
and milling facilities, for development
work, and for acquisition of additional property," work¬
ing capital and other corporate purposes. Underwriter
First International
Electric Co.
(10/3)
Sept. 13 filed 80,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To reduce bank loans.
Underwriters — Dillon,
^Commonwealth Edison Co. (10/9) »Sept. 19 filed 250,000 shares of cumulative preferred
stock (par $100). Price—To be supplied bv amendment.
Proceeds
For construction program. Underwriters—
The First Boston Corp. and Glore, Forgan- & Co., both
—
of New York.
Fire Insurance Co.
Aug. 26 (letter of notification) 100,000 shares of common
stock (par $1). Price — $3 per share.
Proceeds — For
capital and surplus and for first year's deficit. -a Office—
S. Bannock St., Englewood, Colo.
Underwriter —
3395
American
Underwriters, Inc., Englewood, Colo..
First National
.
*
Life Insurance Co., Phoenix, Ariz.
July 29 filed 106,500 shares of common stock (par $4),
of which 90,000 shares are to be offered publicly and
16,500 shares to employees pursuant to stock purchase
options/ Price—To public, $12 per share.-Proceeds—-For
expansion and other corporate purposes. Underwriter—
None.
Florida Trust, Pompano Beach, Fla.
4 filed 850 certificates of beneficial5 interest
March
in
Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, Sell
and convey lands and every character of real property.
the
Trust.
Price—$1,000 per certificate.
Underwriter—None.
Commonwealth
Income
Fund,
Inc.
Aug. 8 filed 500,000 shares of common stock (par $1).
Price—$8 per share (for a 21-day period). Proceeds—
For investment. Office—San Francisco, Calif.
Offering
—Expected in October for a three week period. ■ -
•
Forest
(9/27-10/2) Y
company's products, .working capital, addi¬
and accounts receivable, for research
and development and for other general corporate pur¬
motion
poses.
of
inventory
Office—Brooklyn, N. Y.
B. Burnside & Co.,
Underwriter—Mortimer
Inc., New York.
if Foster Grant Co.,
Inc., Leominster, Mass. -
(10/15)
mined by
competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.; The First
Boston Corp. Bids—Tentatively scheduled to be received
up to 11 a.m. (EDT) on Oct. 22.
Laboratories, Inc.
Aug. 28 filed 200,000 shares of capital stock ;?(par. 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
tional
• Consolidated Edison Co. of N. Y., Inc. (10/22)
Sept. 20 filed $60,000,000 of 30-year first and refunding
mortgage bonds, series N, due 1987.; Proceeds—To repay
approximately $43,000,000 of short-term bank notes and
for construction program.
Underwriter—To be deter¬
Sept. 20 filed 300,000 shares of common stock {par
Price—To be supplied by amendment. Proceeds —
expansion program and working capital.
Wertheim & Co., New York.
$1).
For
Underwriter—
Consolidated Fenimore Iron Mines, Ltd.
ronto Stock Exchange as of
on
ment.
—None.
received
Oct. 14.
Nov. 1, 1957. Price—To be supplied by
expire
Sept. 6 filed $25,000,000 of debentures series I, due 1982.
Proceeds—For
.
Oct. 16, 1957 on the basis of $100 of
25 shares of stock held; rights; to
Fall River Power Co.,
Sanford, Me.
July 5 filed 248,132 shares of common stock (par 100).
market.
>
each
for
tion program,
,
Colonial Aircraft Corp.,
June 26 (letter of notification) 150.000 shares
on
of record
debentures
Colo.
(10/15) Sept. 13 filed $6,000,000 of 6% debentures due Feb. 1,
1968 (with warrants to purchase 80,000 shares of common
stock of Coastal, of which 60,000 shares are included in
the public offering and exercisable at $1 per .Snare;
and 20,000 shares to be privately placed; and warrants
to purchase an undetermined number of shares of Mc¬
Lean Industries, Inc., class A common stock at market,
the exact number of shares to be established at a later
date.
Price—To be supplied by amendment (expected
at 100% for debentures). Proceeds—Together with other
funds, to purchase five C-2 freighters to be converted
into trailerships.
Underwriters—Eastman Dillon, Union
Securities & Co. and White, Weld & Co., both of New
Ship Corp.
(jointly); Blyth & Co., Inc. and The First Boston
Corp. (jointly); White, Weld & Co. Bids—Expected to be
Co.
holders
proximately 30% of the outstanding capital stock.
Price—At
(10/16).
Co.
Sept. 24 filed $35,156,700 of convertible debentures due
1972 to be offered for subscription by common stock¬
Price—$2 per share.
York.
ISSUE
treal, Canada. Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & *Co., Ltd.,
Montreal, Canada.
:
rights to expire on Oct. 3, 1957. Price—At par ($50 per
share.) Proceeds—To reduce bank loans. Underwriter—
None. American Telephone & Telegraph Co. owns ap¬
Coastal
REVISED
asked, per share). Proceeds—For mining ex¬
Office—c/o Roy Peers, 9 De Casson Rd., Mon¬
penses.-
quire
Co.
Aug. 2 filed 124,991 shares of capital stock being offered
for subscription by stockholders of record Aug. 27, 1957
on the basis of one new share for each 10 shares held;
& Co. Inc., New York; and The Ohio Company,
Columbus, Ohio.
trust bonds due 1987. Proceeds—To repay
California O'eeron Power Co.
(9/30)
Read
v.
(10/30)
$3,000,000 first mortgage and collateral
bank loans and
to acquire securities of Montaup Electric Co. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co.
and Shields & Co. (jointly); Stone & Webster Securities
Corp.; Blair & Co. Incorporated. Bids—Expected to be
received up to 11 a.m. (EST) on Oct. 30 at 49 Federal
St., Boston, Mass.
Sept.
Uranium Corp.
Underwriter—Glick
Bridgeview Towers Associates, Fort Lee, N. J.
Brockton
Chess
ITEMS
share).
May 14 (letter of notification) 600,000
stock (par $1—Canadian).
Price—50
•
Sept. 17 filed $8,000,000 of
Proceeds—For oil devel¬
York, N. Y.
•
Minneapolis, Minn.
July 22 filed 200 participating units in Apache Oil Pro¬
gram 1958.
Price—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas leaseholds; and for
other corporate purposes. Underwriter none; sales to be
made through corporation and APA, Inc., its subsidiary.
Price—$3 per share.
30 cents).
PREVIOUS
and $1,85
if Consumers Power
America
July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Office—701 Monroe St., Hoboken, N. J.
UnderwriterGarden State Securities, Hoboken, N. J.
City, Mo. Underwriters—Paul C. Kimball &
cago, 111.; and McDonald, Evans & Co., Kansas
Investors Corp.
50,000,000 shares of common
$1,000).
(par $1).
writer—None.
Bonds, Ltd., Englewood, N. J.
bond trust cer¬
$250, $500 and
For purchase of mortgage bonds.
Sept. 3 filed $1,000,000 of 8% mortgage
tificates.
Price — At par (in units of
•
ADDITIONS
SINCE
stock
(par $7).
of
common
Price—At market (closing price on To¬
June 14, 1957
was
$1.82 bid
General Aniline & Film Corp., New York
Jan.
and
14 filed 426.988 shares of common
A stock (no par)
1,537,500 shares of common B stock (par $1).
Pro-
Volume
186
Number
5676
.
The Commercial and Financial Chronicle
.
.
(1363)
ceeds—To
the
Attorney General of the United States
Underwriter—To be determined by competitive
bidding
'
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
654, 101 Indiana Ave., N. W., Washington 25,
Automatics Corp., Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To es¬
Toronto, Canada.
assem- ■-
.
.
.
General Credit, Inc.,
Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971,. with detachable
to
purchase 160,000 shares of participating [
preference stock, to be offered in units of $500 of deben¬
General
Underwriter
-
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.
—
H. Carroll & Co.,
Denver, Colo, and AngloAmerican Securities, Inc.,
Jersey City, N. J.
Import Corp., Houston, Texas
(letter of notification) 100,000 shares of common
stock.
Price—At par ($3 per share). Proceeds—For in¬
ventory, working capital, etc. Underwriter—Benjamin
& Co., Houston, Tex.
Feb. 27
NEW
September 26
and preferred stocks of Peninsular
1.3
shares
Peninsular
General
of
common,
and
Telephone Co.
common
one-half
for
share
each
of
on
the;
stockholders
mon
General
of
Peninsular
extended
to
Oct.
14.
Dealer-Managers—Paine, Webber, Jackson & Curtis
and
Stone & Webster Securities Corp.
Forest
(10/3)
—For
working capital.
Co., New York.
~
;
debentures
(Merrill
Lynch,
Giant Petroleum Corp.
July 22 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share.
Proceeds—To
pay outstanding debt and for working capital. Office—
225 East 46th St., New York, N. Y. ■ Underwriter—A.
G.
Bellin Securities Corp., 52
Broadway, New York, N. Y.
Great Lakes Natural Gas
&
holders of Great Lakes Oil & Chemical Co. on basis of
one-fourth share of Natural Gas stock for each share
of
Oil &
Chemical stock held with an
oversubscription
Price—$1.25 per share. Proceeds—For explo¬
ration costs, improvements,
expansion, etc. Office—Los
Angeles, Calif. "Underwriter—Dempsey-Tegeler & Co.,
St. Louis,-Mo.
Offering—Temporarily postponed.
privilege.
Pierce,
S:
48
Securities
&
organizers,, incorporators, management, and/or direc¬
tors. Price—$10 per share. Proceeds—For
working cap¬
ital and general corporate
purposes. Underwriter—None.
Northern
Natural
Bell
★ Gulf States Land & Industries, Inc. '
25 filed 316,814 shares of common stock (par 50
and $2,754,900 6% first mortgage
sinking fund
bonds to be offered in
exchange for the outstanding $4.50
prior preferred stock on the following basis: For each
preferred share (a) IIV2 shares of common
stock, or (b)
$100 of bonds, plus IV2 shares of stock. Exchange
Agent
—Howard, Weil, Labouisse, Friedrichs
&
Co., New Or¬
(Offering
National
.
to
(Scott
Taylor
(9/30)
Inc.; Merrill Lynch, Pierce, Fenner and Beane
White, Weld & Co. (jointly); Salomon Bros. &
Dillon,
&
Co.
Union
and
A.
Securities
&
Columbia
Gas
11
(Kidder,
&
Peabody
Co.
Inc.
&
L.)
Co.,
Cambridge, Mass.
Sept. j2 filed 9,365 shares of 5% preferred stock. Price—
($100 per share). Proceeds—For working capital.
supplies.
Underwriter—None.
Sales
DigitizedBusiness—Sehool
for FRASER
At par
Co.)
First
Boston
October
_-Pfd.
Co.)
(The
First
Boston
(Wednesday)
First
Boston
October
Toledo
10
$1,000,000
&
Co.)
California
(Midland
be
Co
7
(Bids
$6,000,000
(Monday)
Debentures
14
(Thursday)
-Common
Securities,
Inc.)
18
Common
shares
Co.)
100.000
be
Invited)
to be
(Bids
11
shares
to be
Bonds
Invited)
19
(Tuesday)
-
(Bids
Roach
(Hal)
to
&
be
Co.)
&
300,000
shares
<
$4,950,000
Co.)
9
Bonds
S20.000.000
(Monday)
Debentures
1
11:30
a.m.
EST)
10
$30,000,000
(Tuesday)
Indiana & Michigan Electric Co
Bids
11
EST
am
December
$1,125,000
—
———
Staats
Invited)
Bonds
$20,000,000
Common
Offering to stockholders—no, underwriters)
(William R.
to be
December
Equip. Trust Ctfs.
Southern New England Telephone Co
Siegler Corp.
(Tuesday)
Chesapeake & Potomac Telephone Co. of
(Bids
invited)
Fuller
3
Common
Productions
D.
EST) $25,000,000
a.m.
Maryland
Co., Inc.--—
(Wertheim
11
December
—Debentures
Pittsburgh & Lake Erie RR
Common
Virginia Electric & Power Co
$8,000,000
$6,000,000
i
(
"
451,894 shares
Bonds
'Bids
EDT)
$3,500,000
Co
December
v
(Eastman Dillon, Union Securities & Co. and White, Weld & Co.)
Foster Grant
Ohio Power
Bonds
a.m.
Debentures
Invited) $40,000,000
Middle South Utilities Inc._
(Bids
(Tuesday)
Ship Corp
$2,000,000
Common
Atlanta Gas Light Co
Coastal
..
Bonds
to
November
Bonds
Continental Screw Co
October 15
$384,450
(Monday)
(Bids to be invited)
(Hayden Stone &
Bonds
$12,000,000
Mystic Valley Gas Co.
(Bids
received) $10,000,000
300,000
Bonds
(Thursday)
EST)
noon
,
$20,000,000
Lawrence Gas Co
(Monday)
Corp.)
„
(Wednesday)
Michigan Bell Telephone Co
Oregon Power Co
Higginson
$6,000,000
invited)
November
'Bids
Bonds
'Bids to be
EST)
Electric
to
Preferred
$7,500,000
Equip. Trust Ctfs.
noon
November
$2,809,600
(Thursday)
October 14
about
Allstate Commercial Corp
$25,000,000
Terminal RR
(Bids to be Invited)
Inc.)
(Snow, Sweeney & Co., Inc. and A. C. Allyn & Co., Inc.)
$9,000,000
Preferred
Corp.)
Bonds
Southern' Union Gas Co
Preferred
Rockland Light & Power Co
Preferred
(Offering to common stockholders—underwritten by
The
$3,000,000
November 11
—Common
Forgan
EST)
a.m.
Co.,
((Bids
(Tuesday)
Glore,
$2,600,000
San Diego Gas & Electric Co.
100,000 shares
and McDonald, Evans & Co.)
and
(Wednesday)
Equip. Trust Ctfs.
November
The First Boston Corp.> 200,000 shares
Corp.
&
Merrimack-Essex
(Monday)
California Oregon Power Co
(Paul C. Kimball & Co.
(Blyth
(Bids
—Common
9
$250,000,000
invited)
November 6
Reading Tube Corp
October
(Tuesday)
Invited)
be
11
(Bids
Common
October 8
$4,000,000
Southern Pacific Co
$300,000
(Emanuel Deetjen & Co.)
Equip. Trust Ctfs.
EST)
October 31 (Thursday)
Diego Gas & Electric Co
(Friday)
(Kesselman & Co.)
and
San
$17,500,000
Strato-Missiles, Inc.
October 7
'
$8,000,000
..Debentures
Corp.)
4
be
to
(Bids
$12,000,000
Ohio
(Monday)
Brockton Edison Co
$25,000,000
Shamrock Oil & Gas Corp
'8
(J.
Debenture!
The
Bonds
$8,000,000
Baltimore & Ohio RR
Debentures
and
invited)
noon
(Bids to
EDT)
EDT) $3,000,000
October 30
Columbus & Southern Ohio Electric Co
Read
be
Common
General Tire & Rubber Co
(Dillon,
a.m.
October 29
(Thursday)
a.m.
$60,000,000
American Telephone &
Telegraph Co.—Debentures
$10,500,000
System, Inc
(Bids
Bonds
(Wednesday)
Norfolk & Western Ry
$300,000
Inc.)
.'
>
■
Preferred
to
'Bids
Co.
C.
Allyn & Co.
Inc. (jointlv); Stone & Webster Securities
Corp.: Lee
Higginson Corp. Bids—To be received up to noon (EDT)
on
Sept. 30 at The Hanover Bank, 70 Broadway, New
York 15, N. Y.
Hammett
underwriting)
Nuclear Science & Engineering Corp.
Co.
Loeb
Debentures
$100,000,000
Co.,
October 3
<
filed
Eastman
(Bids
(Wednesday)
&
EDT)
a.m.
October 28
Biochemicals, Inc
(
1987.
Kuhn,
Preferred
stockholders—no
(Tuesday)
Brockton Edison Co.
Marine Midland Trust Co.. of New York—Common
(Lee
and
Union
*
leans, La.
$17,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for
construction program. Underwriter—To be
determined
by competitive bidding. Probable bidders: Halsey, Stuart
11
(Bids
October 2
(Monday)
Common
October 23
$16,000,000
EDT)
a.m.
$8,000,000
Public Service Co. of New
Hampshire
Telephone Co
(Bids 11
V
by
(Friday)
October 22
$12,000,000
Inc.)
EDT)
a.m.
Consolidated Edison Co. of New
York, Inc.
(Tuesday)
Co.,
underwritten
(William R. Staats & Co.)
approximately 275,000 shares
(Bids
Dillon,
be
$35,156,760
Bonds
October 21
$17,500,000
Co
Gas
(Blyth &
Sept.
cents)
11
(Bids 11
(Blyth & Co., Inc.
to be sold at 25 cents
per warrant
Utilities Co.
Beane)
Eastman
Co.)
& Co.)
Industries, Inc.—
Debentures
and
Debentures
stockholders—to
Common
(Offering to stockholders—no underwriting) $2,496,900
Debentures
&
(Wednesday!,
Co
common
shares
Co.
October 1
Baltimore, Md.
to
(jointly);
page
Federation Bank & Trust Co
Darco
Finance Corp
Commonwealth Edison Co
Gulf States
to
October 18
(Monday)
Fenner
of warrants which
Hutzler
on
CALENDAR
Bonds
Century Acceptance Corp
and
Continued
(Bids
EDT) $17,000,000
Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
&
Sept. 3, 1957; rights will expire on November
1, 1957.
per share (Canadian
funds). Proceeds—For
Price—$11
$500,000
Gas Co
Lemon
(The
July 15 iiieu i /9,«jy3 shares of common stock (par 50
cents) to be offered for subscription by common stock¬
are
Co., Inc.)
Co., Inc.) $300,000
8,000
Loan
Corp.
Guardian Insurance Corp.,
&
Common
(Offering to stockholders—underwritten by G. H. Walker & Co.)
—
29
at
the rate of one share for
each 15 shares of Continental
Oil stock held of record
Sept. 16, 1957, while the offering
to holders of
ordinary shares of Hudson's Bay Co. is
to be at the rate of
11/6 shares of Hudson's
Bay Oil
& Gas stock
fpr each 15 ordinary shares held of record
Plantations Bank of Rhode Island
$100,000 of 10-year 6%
120,000 shares of common
and
noon
National Cylinder
Southwestern
ital.
Office
1022 18st St., N. W.,
Washington, D. C..
Underwriter—Whitney & Co., Inc., Washington, D. C.
1,
Company of Adventurers of England
Trading into Hudson's Bay ("Hudson's
Bay Co."). The
offering to stockholders of Continental Oil is to be
Pennsylvania Power Co
Common
Vedit?
(Bids
(letter of notification)
stock (par 10-cents) to be offered in units of one
$50
debenture and 20 shares of common stock. Price—$100
per unit. Proceeds—To discharge short term
obligations;
purchase merchandise inventory; and for working cap¬
Oct.
The Governor and
Morgan Stanley
Gulf States Utilities Co
,
Aug.
Springfield, HI.
Bay Oil & Gas Co. Ltd.
<
Genie Craft Corp.
convertible
Martin is also
Aug. 27 filed 1,744,592 shares of
capital stock (par $2.50)
being offered for subscription
by stockholders of Con¬
tinental Oil Co. and
by holders of ordinary shares of
(Offering
Common
Burnside
(Jean R.
(Johnston,
Underwriter—Kidder, Peabody
B.
September 30
—
Sept. 13 filed $12,000,000 of subordinated debentures due
1982 (with common stock. purchase warrants at¬
tached). Price—To be supplied by amendment. Proceeds
-
Hudson's
Consumers Power
(Friday)
Chess Uranium Corp
Oct., 1,
Aug. 8
•
Office—216 E. Monroe
St.,
October 16
Laboratories, Inc
(Mortimer
State
General Tire & Rubber Co.
&
President.
(Thursday)
September 27
share
preferred share for- each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. Offer to pre¬
ferred stockholders expired on Aug. 14 and that to com¬
ISSUE
Louisiana Citrus Lands, Inc.—Preferred & Common
/ (Bids 11 a.m. EDT)
General
Telephone Corp., New York
May 24 filed 1,480,787 shares of common stock (par $10)
and 170,006 shares of 5.28% convertible
preferred stock
(par $50) which were offered in exchange for common
of
St.,
Investors,
Inc., Des Moines, la., of which Charles F.
Parking, Inc.
outstanding debt; for expansion of subsidiary cor¬
poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood Ave.,
Youngstown, Ohio
of
Bay
writers
tire
basis
320
Cooney & Co.,
Heger Drilling Co., Inc., Rangely, Colo.
Aug. 29 (letter of notification) 100,000 shares of common
stock (par 10
cents). Price—$2 per share. Proceeds—
Fo* payment of
obligations and working capital. Under¬
June 18 (letter of notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds—To re¬
•
607,
H. J.
—
Holy Land
warrants
Price—$500 per unit. Proceeds—
For expansion and working capital. Underwriter—None
named.
Offering to be made through selected dealers
Application is still pending with SEC.
Suite
—
New York.
bly of controls; and for other corporate purposes. Ad-,
dress—c/o Positronic Corp., 2572 Ridgemore Road, N. W.,
Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta.
Ga.
' "•'"
tures and 40 warrants.
Office
purposes.
47
Horace Mann Fund,
Inc., Springfield, III.
June 27 filed
100,000 shares of capital stock (par $1).
Price—At market. Proceeds—For
investment. Distrib¬
utor and Investment
Manager—Horace Mann
—
corporate
General
tablish production facilities for manufacture and
company, subject to
preferred stockholders.
Aug. 23 (letter of notification) 600,000 shares of common
stock (par $1-Canadian).
Price
50 cents per share.
Proceeds—For development of property and for
general
D. C., but bidding has been
postponed.
.
through directors, officers and employees
preferential rights of existing
of
Hampshire Nickel Mines Ltd.
and
Glore, Forgan & Co. (jointly). Bids — Had been
scheduled to be received up to 3:45 p.m.
(EDT) on May
13 at Room
to be made
are
& Co.)
Common
1,400,000 shares
—Common
300,000 shares
11
(Wednesday)
Baltimore & Ohio RR
•Bids
Suburban
to
Electric
(Bids
be
Equip. Trust Ctfs.
invited)
$2,600,000
Co.
to be
invited)
—>—Bond*
$4,500,000
-
The Commercial and Financial Chronicle... Thursday,
43
September 26,195?
(1364)
Kellogg, Idaho
notification) 800,000 shares of common
stock.
par (17V2 cents per share).
Proceeds
—For mining expenses.
Office—Sidney Bldg., Kellogg,
Idaho, Malcolm C. Brown is President. UnderwriterStandard Securities Corp., Spokane, Wash., and Kellogg,
Mascot Mines, Inc.,
Coyitinued jrom page
47
June 3
Office
Calgary,
Continental Oil and
Hudson's Bay Co. have agreed to purchase 75% and
25% respectively, of the shares which shall not be sub¬
development and exploration costs.
Alta
Canada Underwriter—None.
the stockholders
for by
scribed
of the two companies.
New York.
Telephone Co., Hutchinson, Minn.
of notification) 1,697 shares of common
Adviser—Morgan Stanley & Co.,
Financial
Hutchinson
(letter
be offered for subscription by common stock¬
holders on the basis of one new share for each five
chares held as of Aug. 20, 1957. Price—At par ($10 per
21
Aug
stock to
plant. Underwriter
Proceeds—For expansion of
chare).
.—None.
•
Kycalog, Inc.
24 (letter of notification)
vertible debentures due Oct. 15,
$280,000 of 6^4% con¬
1967 being first offered
for subscription by stockholders of record on Sept. 17,
1957 for an unlimited amount,
subject to allotment;
July
to expire
rights
on
Sept. 27.
Price—99% of principal,
notes and to purchase
Proceeds—To retire bank
amount.
equipment. Office — 505 Aero Drive, Shreveport, La.
Underwriters—Keith, Heed & Co., Inc., Dallas. Texas;
Aetna Securities Corp., New York, N. Y.; and Roman &
Lauderdale, Fla.
Johnson, Fort
Inland Western Loan &
Finance Corp.
non-voting com¬
subscription by
participation life or endowment con¬
by Commercial Life Insurance Co. P"ce—
holders of special
$1.50 per share. Proceeds—For operating capital for two
subsidiaries and to finance expansion program. Office—
IPhoenix, Ariz. Underwriter—None.
International Insurance
Investments, Inc.,
Englewood, Colo.
July 29 (letter of notification) 100,000 shares of common
stock (par SI). Price—$3 per share. Proceeds—For oper¬
in Colorado through its
Underwriter—American Underwriters, Inc.,
ation of an insurance \ company
subsidiaries.
Englewood, Colo.
International Sales Co. of
Washington, D. C., Inc.
Sept. 20 (letter of notification) $250,000 of 10-year 8%
debentures to be issued in denominations of $500 each.
Price—At 100%. Proceeds—To reduce outstanding loans
and for working capital. Office — 1224 24th St., N. W.,
Underwriter—None.
Washington, D. C.
Fla.
May 21 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share.
Proceeds
—To purchase a ship and for working capital. Under¬
writer—Anderson Cook Co., Inc., Palm Beach, Fla.
Steamship & Salvage Co., Miami,
Isthmus
Inc., Washington, D. C.
July 30 filed 810,000.000 of 5V2-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
ctock (par 20 cents) to be offered in units of a $1,000
debenture and 10 shares of stock, or a $100 debenture
and one share of stock. Price—Par for debenture, plus
Janaf,
$2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other capital im¬
shares;
provements; for retirement of present preferred
working capital, etc. Underwriter—None.
and for
•
Lake
Jefferson
ah arcs, to be offered for
holders on the basis of
share
new
each
for
five
Price—To be supplied by amendment. Pro¬
ceeds—To increase working capital and for development
of
projects in the Umted States and Canada. Under¬
writers—Hornblower & Weeks, New York, N. Y.; and
Robert Garrett & Sons, Baltimore, Md. Offering—Post¬
poned due to market conditions.
new
"Koor" Industries & Crafts
Co., Ltd.
Aug. 26 filed 30,000 shares of 6%% cumulative partici¬
pating preferred stock (par IL 180—$100). Price—$100
per share (payable in cash or up to certain limits in
■
State
Israel
of
Israel
Independence Issue Bonds and State of
Development Issue Bonds). Proceeds
—
For ad¬
to subsidiaries in connection with their expansion
vances
Office—Haifa, Israel. Underwriter—None.
programs.
-\.r
:
.
Lehigh Spinning Co., Altentown, Pa.
Aug.
16
(letter
in
offered
(par
for
of
notification)
convertible
ordinated
exchange
$245,000
debentures
for
clue
of
1972
outstanding
6%
to
sub¬
first
be
preferred
stock
Price—At
100% of principal amount.
preferred stock.
UnderwriterWarren W. York & Co., Inc., Allentown, Pa.
par),
Proceeds—To
Madison
redeem
Improvement Corp.,
July 29 filed 50,000 shares of
($10
Madison, Wis.
common
stock.
Price—At
per
Maine
Insurance Co.,
Portland, Me.
Aug. 22 filed 53,500 shares of capital stock
(par $3), of
which 11,000 shares,-at $5.31 V4 per share, are to be of¬
fered for subscription by stockholders of record July 1,
1957 at the rate of one new share for each share held. The
remaining 42,500 share* are to be offered to directors,
employees and agents of the company for a period of
14 days at $5.62per share.
Price—$6.25 to public.
Proceeds—To increase capital and surplus. Underwriter
—First
Maine
JPrer-»'?0~<t
-
Sept. 13 (letter of
mon stock
(par 10 cents).
Corp.,
Portland,
Me.
Burton
M.
Cross,
tn purchase any shares not subscribed for
Digitizedby
for stockholders.
FRASER
Price
Proceeds—For mining expenses.
— 15 cents per share.
Underwriter—None.
Sept.
1956 filed 1,600,000 shares
of capital stock (no
par) of which 708,511 shares are subject to an
rescission. Price—$3 per share. Proceeds—For
offer of
comple¬
tion of plant, provide for general creditors and for work¬
ing capital. Office—Jackson, Miss. Underwriter—None,
offering to be made through company's own agents.
(letter of notification)
18
725
shares of class A
stock and 1,000 shares of class B common stock.
common
Price—At par
share). Proceeds—For a fertil¬
izer plant, building and equipment and for working cap¬
($100
per
Underwriter—None.
ital.
Cement Co.
Mississippi Valley Portland
Dec. 26,
it Nuclear Science & Engineering Corp. (10 14-18)
Sept. 20
cents).
—To
filed 100,000 shares of common stock (par 25
Price—To be supplied by amendment. Proceeds
indebtedness to Norden-Ketay Corp., to
purchase additional equipment and for working capital.
Underwriter—Hayden, Stone & Co., New York.
prepay
America
of common stock (par $1)
to buy an additional 196,994
shares of common stock to be offered for subscription
by common stockholders in units of one share and one
warrant for each seven shares held. Price—To be sup¬
plied by amendment. Proceeds—For expansion program.
Office
Grant Bldg., Pittsburgh, Pa. Underwriter—
it Oakite Products, Inc.,
19 (letter of notification) not in excess of 2,375
shares of common stock (par $5) to be offered for sub¬
None.
(letter of notification) 26,932 shares of com¬
mon stock
(par $2.50), of which 17,932 shares are to be
offered to present stockholders and 9,000 shares are to
be offered to employees. Price—$11 per share. Proceeds
—To increase capital and surplus. Underwriters—John¬
Molybdenum Corp. o#
Aug. 14 filed 196,994 shares
and stock purchase warrants
,
Sept.
scription by employees. Price—$17 per share on install¬
ment basis and $19 per share on cash basis.
Proceeds—For working capital. Office—19 Rector St., New York 6,
Underwriter—None.
N. Y.
-Ar Oglethorpe Life Insurance Co.,
Sept.
Montek Associates,
Inc.
July 16 (letter of notification) 60,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pur¬
chase additional electronic test equipment, shop ma¬
chinery, and to increase working
South State St., Salt Lake City,
capital. Office—2604
Utah. Underwriter—
Moench & Co., Salt Lake City, Utah.
D. Richard
shares of common
Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
of notification) 300,000
Price—At par ($1 per share).
Feb. 18 (letter
stock.
Philadelphia, Pa.
Ga.'["
Lane, Space Corp. and Varnedoe, Chisholm & Co.,
son,
both of Savannah, Ga.
Old American Life Co.,
Seattle, Wash.
3,165 shares of common stock (par $10) to be offered in
units of one common share and three class A shares.
Price—$260
unit.
per
— For working
capital
Underwriter—None.
Proeeeds
and other corporate purposes.
if Owens-Corning Fiberglas Corp.
Sept. 23 filed 373,570 shares of common stock
(par $1),
pursuant to the company's Employee Stock
to be issued
Mortgage Clubs of
Savannah,
13
July 22 filed 15,825 shares of class A stock (par $10) and
Monticello Associates, Inc.
Option Plan.
America, Inc.
Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100, plus a sales commission of $10 per unit
Proceeds—To be invested in small loans
secured by second mortgage on home properties. Office
—Springfield, Mass. Underwriter—None. Charles Hershto the company.
Pacific
•
Telephone & Telegraph Co.
July 26 filed 1,822,523 shares of common stock being
offered for subscription by stockholders of record Aug.
28, 1957
of
on
common
the basis of one new share for each six shares
stock and/or preferred stock held; rights to
Price—At par ($100 per share). Pro¬
advances from parent. Underwriter—
None.
American
Telephone & Telegraph Co. owns
90.54% of the voting stock of Pacific T. & T; Co.
expire Sept. 30.
,
man
is President.
ceeds—To
(N. Y.)
Municipal Investment Trust Fund, Inc.
undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
May 9 filed 5,000 units of
investment.
Proceeds—For
Sponsor—Ira Haupt & Co.,
New York.
repay
^Ar Painted Desert Uranium & Oil Co., Inc.
(letter of notification) 7,000,000 shares of com¬
stock (par one cent).
Price—21/2 cents per share.
Proceeds—For mining and oil drilling operations. Office
Sept. 13
mon
Investors Corp. of New York
Mutual
May 17 (letter of notification) 295,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To
—305
Bldg., Spokane
'
Peyton
None.
acquire real estate properties and mortgages. Office—550
Fifth Ave., New York 36, N. Y. Underwriter — Stuart
Securities Corp., New York.
Wash.
1,
Underwriter—
;
if Pennsylvania Power Co. (10/16)
Sept. 19 filed $8,000,000 of first mortgage bonds due
1987.
Proceeds
To repay outstanding bank loans of
Fund, Princeton, N. J.
Nassau
$4,500,000 and for construction program. Underwriter—
To
be
determined by competitive
bidding. Probable
May 8 filed 250,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—10 Nassau
St., Princeton, N. J. Investment
Hoisington, Inc., same address.
•
Biochemicals, Inc.
National
(letter of notification)
Sept. 10
Advisor
—
bidders;
Harland W.
(10/2)
100,000 shares of com¬
wealth
stock (par 10 cents). Price—$3 per share. Proceeds
—For cost of plant and inventory and for general cor¬
National
Cylinder Gas Co.
—
and
.
>
of
Proceeds
20,
1957
—
Office—3101
at
the rate
stock owned.
of
1V2
Price
tures as
tions,
shares for each
$2 per share.
•
and
15% deben¬
$173,180 debt to Trans-Union Produc¬
for
working
capital.
-Underwriter—E.
Offering—Date indefinite.
Business—Tele¬
& Co., New
L. Aaron
.
(New York)
Aug. 13 filed 125,000 shares of common stock (par one
cent). Price—$5 per share. Proceeds—For exploration
and development of properties and completion of a ura¬
nium concentrating pilor mill. Office—295 Madison Ave.,
New York 17, N. Y. Underwriter—None.
\
shares to be of¬
employees. Price
New York Stock
Proceeds — For
New Haven Water Co., New Haven, Conn.
Aug. 9 filed 60,000 shares of common stock to be offered
for subscription by common stockholders of record Sept.
16, 1957, on the basis of one new share for each three
shares held.
Price—At par ($50 ner s^re)^ Proceeds-?—
To reduce bank loans" Underwriter—None/ m T * V * ? ? *
Inc.;
as a
Ramapo Uranium Corp.
—
enlarge plant and for working capital.
Liberty Ave., Pittsburgh, Pa. Underwriter
if Neisner Brothers, Inc.
Sept. 16 (letter of notification) 15,000
fered by company for subscription by
—95% of closing market price on the
Exchange on designated price dates.
working capital. Underwriter—None.
well
vision releases
York.
To
—None.
Oct. 23.
on
Proceeds—To retire $125,000 of outstanding
(letter of notification) 142,620 shares of com¬
(par $1) to be offered to stockholders of rec¬
common
—
Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
stock
Sept.
(10/23)
program.
to be received
if National Valve & Manufacturing Co.
ord
Boston
-
shares of common stock (par one
cent). Price—$1.25 per share. Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc. Under¬
writer—Gearhart & Otis, Inc., New York. Statement ex¬
pected to be amended.
16
First
To repay bank loans and for
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp. and Coffin & Burr,
Inc.
(jointly);
Equitable
Securities
Corp.;
Lehman
Brothers; White, Weld & Co. Bids—Tentatively expected
Proceeds
construction
National Lithium Corp., New York
Sept.
The
Services, Inc., 300 Park Ave., New York 22, N. Y.
J, due 1987.
amendment. Proceeds — For
working capital. Underwriter — Merrill
Feb. 19 filed 3,120,000
mon
Inc.;
Sept. 24 filed $8,000,000 of first mortgage bonds, series
To be supplied by
expansion
Co.
if Public Service Co. of New Hampshire
due
Sept. 1, 1977 (convertible on or before Sept. 1, 1967).
Price
&
Proceeds—For investment.
(9/30-10/3)
Aug. 28 filed $17,500,000 of subordinated debentures
Stuart
★ Pine Street Fund, Inc., New York
Sept. 24 filed (by amendment) an additional 75,000
shares of common stock (par $1). Price — At market.
porate purposes. Office—Room 202 Houston Title Bldg.,
Houston, Tex. Underwriter—Scott Taylor & Co., Inc.,
New York, N. Y.
•
Halsey,
Corp.; Merrill Lynch, Pierce, Fenner & Beane and Dean
Witter & Co. (jointly); Lehman Brothers; Kidder, Pea-i
body & Co.; Kuhn, Loeb & Co. Bids—Expected to be
received 11 a.m. (EDT) on Oct. 16 at office of Common¬
mon
share
share). Proceeds—For working capital, etc.
Underwriter—None. Henry Behnke is President.
par
'
Blyth & Co., Inc., San Francisco and New York.
Lynch, Pierce, Fenner & Beane, New York.
if Leeds & Northrup Co., Philadelphia, Pa.
Sept. 19 filed 15,300 shares of common stock (par 50
cents), which may be acquired by employees eligible
under the company's Employees' Stock Purchase Plan,
1957-1958.
(10/1)
160,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.?
Proceeds—For construction program and for purchase
of securities of subsidiary companies.
Underwriter—
filed
11
—
subscription by common stock¬
one
Northern Natural Gas Co.
Sept.
ic Northland Chemical Co., East Grand Forks, Minn.
Idaho
notification) 1,000,000 shares of com¬
Mines Corp., Ltd., Wallace,
ic Metropolitan
Sulphur Co.
Aug. 27 filed an undetermined number of shares of com¬
mon stock (par $1), may be between 143,000 to 150,000
ahares held.
Idaho.
—
Aug. 16 filed 2,500,000 shares of class A
mon stock
(par $1) to be offered for
tracts issued
(letter of
Price—At
if Rapid Electrotype Co., Cincinnati, Ohio
two-year debentures due
Sept. 20 filed $656,250 of 5V2 %
136,485 shares of common stock, of
shares were issued upon conversion of
debentures and 40,000 shares on exercise of option, and
58,645 shares are issuable in conversion of the afore¬
mentioned $656,250 debentures.
Proceeds — To selling
May
1,
which
1958;
37,840
and
security holders. Underwriter—None. Said securities are
be sold by holders thereof in the open 'market or
to
*
otherwise*
Volume
186
Number 5676
.
.
.
The Commercial and Financial
Chronicle
VXOUU/
Reading Tube Corp. (10/7-11)
Aug. 30 filed 155,014 shares of common stock (par $1),
subsequently amended and reduced to 100,000 shares.
Price
To be supplied by amendment. Proceeds
To
indebtedness.
Underwriters
Johnston, Lemon & Co.,
and Eastman Dillon, Union Securi¬
Washington, D. C.,
ties &
—
Co., New York.
—
—
bank loans and for working capital.
•—Emanuel, Deetjen & Co., New York.
repay
Roach
(Hal)
Productions
Underwriter
(10/15)
Aug. 8 filed 375,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of pro¬
duction of filmed television commercials and for
capital.
working
Business—Produces films for television.
—Culver
City, Calif.
★ Roanoke Gas Co.
Sept. 18 (letter of notification) 19,160 shares of common
(par $5) to be offered to common stockholders on
stock
the basis of
share for each five shares
held; rights
to expire on Oct.
31, 1957. Price—$15 per share. Pro¬
ceeds
For construction program.
Office—125 West
one
—
Church Ave., Roanake, Va.
Underwriter—None.
Rockland Light & Power Co.
(10/9)
Sept. 18 filed 28,096 shares of convertible cumulative
preferred stock, series C to be offered for
subscription
by common stockholdersjof record Oct. 9, 1957 on the
basis of one preferred share for each 60 common
shares
held; rights to subscribe
per share.
on
Oct.
23, 1957.
Price—$100
Proceeds—To reduce bank loans. Underwriter
—The First Boston
Ro*e Records,
Corp., New York.
July 22 (letter of notification) 11,022 shares of common
stock. Price—At par ($1 per
share). Proceeds—For work¬
ing capital. Office—705 South Husband St.,
Stillwater,
Okla. Underwriter—Richard B. Burns Securities
Agency,
Stillwater, Okla.
Rule
(C. F.)
Construction Co.
Sept. 13 filed 127,289 shares of common stock (par $10).
Price—$13 per share. Proceeds—To retire outstanding
loans
and
for
working capital and investment in addi¬
Office—Nashville, Tenn. Underwriter
tional equipment.
—None.
St. Louis Insurance
Corp., St. Louis, Mo.
March 27 filed 1,250 shares of class C
cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty
Co., who is the
Underwriter
selling stockholder.
Yates, Heitner & Woods, St. Louis, Mo.
—
★ Schering Corp., Bloomfield, N. J.
Sept. 19 filed 278,983 shares of 5% cumulative con¬
vertible preferred stock (par
$30) and 418,475 shares of
common
stock (par $1) to be issued in
exchange for
stock of White
with
Laboratories, Inc. (which is to be merged
Schering
basis of
Corp.
share held.
mon
effective
Sept.
19,
share of preferred stock and
stock for each White class A or
one
common
1957) on the
1V> shares of
class
B
Seminole Oil & Gas
Corp., Tulsa, Okla.
(letter of notification) 275,000 shares of com¬
stock (par five
cents). Price—75 cents per share.
Proceeds
For development of oil and
gas properties.
Underwriter—Albert & Co., Inc., New York, N. Y.
—
Oil
Corp.
Sept. 11 (letter of notification) 40,000 shares of
common
stock
((par $1) to be offered for subscription by stock¬
Price—$1.25 per share to stock¬
holders; $1.37 ^ to public. Proceeds—For expenses in¬
cidental to drilling of oil wells. Office—Suite
14, 1500
holders; then to public.
Massachusetts
Ave., N. W., Washington, D. C.
Shamrock Oil & Gas Corp. (10/3)
Sept. 11 filed $17,500,000 convertible subordinated de¬
bentures due 1982.
Price—To be supplied by amend¬
ment.
Proceeds
$12,000,000 to repay bank loan and
for working
caiptal and general corporate purposes.
-
—
Underwriter—The First Boston Corp., New York.
★ SiegKer Corp., Anaheim, Calif. (10/15)
Sept. 23 filed 300,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—To¬
gether with other funds, to retire present
long-term
of
and subsidiaries, to retire short-term
debt of Unitronics Corp. and The Hufford
Corp., and for
company
working capital. Underwriter—William R. Staats &
Co.,
Los Angeles, Calif.
Sire
Plan, Inc., New York
July 18 filed $4,000,000 of nine-month 8%
funding notes.
Price—At par (in denominations of
$100 each).
—For working capital and other
Underwriter—Sire Plan Portfolios,
★ Southern
corporate
Proceeds
purposes.
Inc., New York.
New
England Telephone Co. (10/15)
Sept. 25 filed 1,358,300 shares of capital stock to be of¬
fered for subscription
by stockholders of record Oct. 7,
1957
on
the basis of
one
held; rights to expire
rants
per
can
are
to
new
share for each four shares
Nov. 8, 1957. Subscription war¬
Oct. 15. Price—At par
($25
Proceeds—To repay advances from Ameri¬
be
on
mailed
on
share).
Telephone & Telegraph Co., which
shares of Southern capital stock.
owns
1,173,696
Underwriter—None.
Southwestern Bell Telephone Co.
(10/1)
Sept. 6 filed $100,000,000 of 35-year debentures due
Oct.
1, 1992. Proceeds—Toward repayment of advances from
American Telephone &
Telegraph Co., the parent. Un¬
derwriter
—
To be determined
by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co. Bids—To be received at Room
2315, 195
Broadway, New York, N. Y., up to 11 a.m. (EDT) on
Oct. 1.
★
State
Loan & Finance
Corp. (9/30)
Aug. 30 filed $12,000,000 of sinking fund
subordinated
debentures due Sept.
15, 1977 (with class A common
stock purchase warrants
attached). Price—To be sup¬
plied by amendment. Proceeds—To redeem
debentures
due April 1, 1960 and to reduce
bank loans and other
Strato-Missiles, Inc.
(10/4)
Price—$1
per
share.
common
Proceeds—To
develop Hatfield propulsion system, and other
projects;
for
purchase^ of additional facilities and for working
capital.
Business—To produce
machinery and equip¬
ment.
Off ice—70 East 45th St., New York, N. Y. Un¬
derwriter—Kesselman & Co., Inc., New York.
Syntax Corp. (Republic of Panama)
July 24 filed 1,165,750 shares of common stock
(par $2)
to be offered for
subscription by common stockholders
of Ogden
Corp. on the basis of one new share for each
Public Service Co.
■
-
common
stock
(par $10)
being offered for subscription by common stockholders
Sept. 20, 1957 on the basis of one new share for
each 10 shares held; rights to
expire on Oct. 8, 1957.
Price—$18.50 per share. Proceeds—To reduce bank loans
and for
new
construction.
Underwriters—The First Bos¬
Merrill Lynch, Pierce, Fenner &
Beane,
Robert W. Baird. & Co., Inc., Mil¬
waukee, Wis.; and William Blair & Co., Chicago, 111.
ton
Corp. and
both
of
New York;
Wycotah Oil & Uranium, Inc., Denver, Colo.
July 29 filed 375,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and for other corporate purposes. Underwriter—•
Teden
&
Co..
Inc.,
New
York.
_
four shares held and to holders
of
of one share for each
option to
options on the basis
purchase four shares of
Ogden common stock; unsubscribed shares to be
offered
to certain
employees and officers. Price—$2 per share.
Proceeds—To pay outstanding
obligations to Ogden Corp.
Tax Exempt Bond
Fund,
June 20 filed 40,000 shares of
per
share.
Proceeds
—
Inc., Washington, D. C.
common stock.
For investment.
Price—$25
Underwriter-
Equitable Securities Corp.,
Nashville, Tenn.
Texam Oil Corp., San
Antonio, Texas
May 29 filed 300,000 shares of common stock
(par $1),
to be offered for
subscription by common stockholders
on a basis of two
new shardb for each share
held. Price
—To be supplied by amendment.
Proceeds—To
repay
indebtedness, for acquisition
and exploration of oil and
leases, for drilling and completion of
wells, and for
other corporate
purposes. Underwriter—None.
gas
Texas Eastern Transmission
Corp.
July 22 filed 1,000,000 shares of common stock
(par $7)
being offered in exchange, on a share-for-share
basis,
for capital stock of La Gloria Oil &
Gas Co. of Corpus
Christi, Tex. The offer was conditioned upon deposit of
at least 81%
(810,000 shares) of outstanding La Gloria
stock prior to Sept.
6, 1957, and it was announced on
Aug. 8 that in excess of this amount had been
deposited.
Offer may be extended
yond Dec. 5,
1957.
from
time
to
time
Underwriter—None.
but
not be¬
Statement
ef¬
fective Aug. 6.
(par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil
properties. Office — 704
First National Bank
Bldg.,
Denver, Colo. Underwriter—
Wayne Jewell Co., Denver, Colo.
Tripac Engineering Corp.
Feb. 27 (letter of
notification) 100,000 shares of class A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine
tools; equip¬
ment and
proprietary development. ' Office — 4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.
Truly Nolen Products, Inc.
July 19 (letter of notification) 100,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For plant and
laboratory expansion, advertising and
working capital. Office—6721 N. E. 4th Ave., Miami, Fla.
Underwriter
Alfred D. Laurence & Co.,
Miami, Fla.
Offering—Temporarily suspended by SEC on Sept. 24. —
^Tucson Gas, Electric Light & Power Co.
Sept. 25 filed 200,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬
bank loans and for
construction
program.
writers—Blyth & Co., Inc., San Francisco
and The First Boston
Corp.; New York.
Under¬
and New
York;
★ Ulrich Manufacturing Co., Roanoke, III.
Sept. 24 filed $600,000 of 6% sinking fund debentures
and 30,000 shares of class A common
stock (par $1) to
be offered in units of $500 of
debentures and 25 shares of
stock. Price—To be supplied by amendment. Proceeds—
To reduce
bank
loans, to repay all
or
part of
an
out¬
standing 5% term loan and/or provide additional work¬
ing capital. Underwriter—White &
Co., St. Louis, Mo.,
on
•
a
best-efforts basis.
Union
Sept.
12
of South
filed
Africa
$15,000,000
10-year external loan bonds
due Oct. 1, 1967. Price—To be
supplied by amendment.
Proceeds—For transportation development
program. Un¬
derwriter—Dillon, Read & Co. Inc., New York. Offering
—Postponed Temporarily.
following spin-off by
Aviation, Inc. of its subsidiaries.
Land-Air, Inc. and Air Carrier Service Corp. intoA-ircraft, Inc., a new company. Underwriter—Cruttenden,
Podesta & Co., Chicago, 111.
;
Califbrnia
Eastern
All States Freight,
Incorporated, Akron, O.
was announced company plans to offer
public¬
ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
private sale of 425,000 shares of common stock at $4 per
June 21 it
share to pay part of cost of purchase of an
operating car¬
rier truck line.
Underwriter—Fulton, Reid &
Co., Inc.,
Cleveland, Ohio.
Date indefinite.
American Telephone & Telegraph Co. (10/29)
July 17 it was announced that company plans to issue
and sell $250,000,000 of debentures to be dated Nov.
1,
1957 and to mature on Nov.
1, 1983. Proceeds—For im¬
provement and expansion of system. Underwriter—To
be determined by competitive
bidding. Probable bidders;
Morgan Stanley & Co.; The First Boston Corp. and Hal¬
Stuart & Co. Inc. (jointly). Bids—Expected to be
opened on Oct. 29.
sey,
Atlantic City Electric Co.
April 9, Bayard L. England, President, announced that
later this year the company will
probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬
struction program. Underwriter—May be determined
by
competitive bidding. Probable bidders: Halsey, Stuart 8c*
Co. Inc.; Kuhn, Loeb & Co., American Securities
Corp,
and Wood, Struthers & Co.
(jointly); White, Weld & Co.
(jointly); The First Boston Corp. and
(jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co.
(jointly); Lee Higginson Corp.; Blyth & Co., Inc.
■
'
(par 10
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For
exploration purposes.
Underwriter—To be named by amendment. Graham Al¬
Portland, Ore., is President.
★ Vanadium Corp. of America
Sept. 23 filed 35,000 shares of capital stock to be offered
to employees under the
company's Stock Option Plan.
Western Copperada Mining Corp. (Canada)
Aug. 30 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per
share). Proceeds—For de¬
velopment and exploratory work, drilling costs and sur¬
vey, and for working capital.
Office — 1205 Phillips
Square, Montreal, Canada. Underwriter—Jean R. Veditz
Co.; Inc., New York.
.
t
Baltimore & Ohio RR.
Bids
expected
are
to
be
(10/30)
received
Oct. 30 for the purchase from it of
trust certificates, to be followed
(12/11)
by
the
company
on
$2,600,000 equipment
by
additional $2,600,000 on Dec. 11. Probable bidders: Halsey, Stuart 8»
Co. Inc.; Salomon Bros. & Hutzler.
an
Byers (A. M.) Co.
May 7 stockholders approved a proposal to authorize a
class of 100,000 shares of cumulative
preference
stock (par $100) and to increase the authorized out¬
standing indebtedness to $15,000,000, in connection witlv
Its proposed recapitalization plan. There are no
specific
.objectives involved. Control—Acquired by General Tire
new
& Rubber Co. in 1956.
Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General
Tire & Rubber Co. financing.
Central Hudson Gas & Electric Corp.
was announced company plans to issue and
sell this year, probably in the fall,
April 22 it
approximately $7,500,000 of sinking fund debentures. Proceeds—To finance
construction
program.
Underwriter—Probably Kidder,
Peabody & Co., New York.
Central
April 9 it
Illinois
was
Public Service Co.
reported
company
plans to Issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
loans and for construction program.
Underwriter—To be
by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.
determined
Central Louisiana Electric
April 8 it
sell
late
announced
was
Co., Inc.
plans to issue and
company
this
year $6,000,000 of first mortgage bonds.
Together with $4,500,000 of 4%% 12-year
placed privately, to be used to
repay bank loans and for construction program.
Un¬
derwriters—Kidder, Peabody & Co. and White, Weld 8c
Proceeds
Uranium Corp. of America,
Portland, Ore.
April 30 filed 1,250,000 shares of common stock
bert Griswold of
plans to issue and sell
company
to $12,500,000 common stock,
up
Drexel & Co.
common
stock
pay
Prospective Offerings
Aircraft, Inc.
July 9 it was reported
and Shields & Co.
Titanic Oil Co.
Under¬
writer—None.
debt
•
May 6 (letter of notification) 6,000,000 shares of
mon
★
—
com¬
Underwriter—None.
June 24
Shacron
Inc., Fortune n, Inc., Fortune III,
Inc. and Fortune
IV, Inc. Underwriter
William Allen
Steadman & Co., East
Orange, N. J. Statement effective
July 24.
Underwriter—None.
Inc.
(par $1)
to be offered in connection
with merger into this Fund
of Fortune,
of Fund
June 7 (letter of
notification) 300,000 shares of
stock (par 10 cents).
Wisconsin
of record
.
Office
Underwriter—S. D. Fuller & Co.,
New York.
Steadman Investment
Fund, Inc.
May 10 filed 100,000 shares of common stock
•
Aug. 27 filed 253,494 shares of
TNT
—
convertible debentures
Co. about the middle of last year arranged
placement of
gage bonds.
Chemical
an
the privateissue of $5,000,000 series G first mort¬
/
Corn
Exchange Bank
Sept. 18 stockholders were given the right to subscribe
for 1,062,765 additional shares of capital stock (par $10)
on
the basis of
one
new
share for each five shares held
of Sept. 18;
rights to expire on Oct. 7. Price—$45.50*
per share.
Proceeds—To increase capital and surplus.
Underwriters
Kuhn, Loeb & Co.; The First Boston
Corp.; Hemphill, Noyes & Co.; and W. C. Langley & Co.,
all of New York City.
I
as
—
■
Continued
.
on
.
page
50
Chronicle
The Commercial and Financial
...
Thursday, September 26,1957
(1366)
50
Sept. 23 it was reported
Tel. Co. of Md. (12/9)
Chesapeake & Potomac
July 30 it was
sell
announced company plans to
,
issue and
ad¬
$30,000,000 of debentures.
Proceeds—To repay
from American Telephone & Telegraph Co.,
vances
Houston
York
President, announced that
possible
future issuance
be used
largely to acquire investments producing ordinary in¬
come as well as those with growth potentials.
City Investing Co., New
July 30, Robert W. Dowling,
are
(jointly); Lazard Freres & Co. and
(jointly); Kidder, Peabody & Co.
giving consideration to the
of debentures which could
Underwriter—To be
determined by competitive bidding.* probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston Corp. (jointly); Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co. (jointly).
,: . ,
Indiana & Michigan Electric Co. * (12/10)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
first mortgage
July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about $20,000,-
consist of a $25 debenture or
shares of $1 par common
with other funds, for con¬
Underwriters—Lehman Brothers and
unit expected to
000 (each
$35 interim note and five
stock). Proceeds—Together
struction program.
Allen & Co.. both of New
Fuel
Colorado
York.
& Iron Corp.
Aug. 19 it was reported company plans to issue and sell
about $40,000,000 first mortgage bonds due 1977 (with
stock purchase warrants). Underwriter — Allen & Co.,
New York.
—For
Commerce Oil
June
it
10
was
Refining Co.
reported this company plans
to raise
Dec.
on
registration about mid-October.
Baird & Co., Milwaukee, Wis.
1
Nov. 18.
-
Long Island^ Trust Co.Sept. 11 company offered stockholders of record Aug.
30, 1957, the right to subscribe for 26,320 additional
shares of capital stock (par $10) on the basis of one new
share for each seven shares held; rights to expire on
Sept. 27. Price—$32 per share. Proceeds—To increase
capital and surplus. Underwriter—A. M. Kidder & Co.,
New York.
Louisiana Citrus
—
(N. Y.)
(10/18)
stockholders will be given
the right to subscribe for 118,900 additional shares of
capital stock at the rate of one new share for each three
12
it
was
announced
6,; 1957. Price—$21 per share. Proceeds—To
capital and surplus. Underwriter—None.
in¬
crease
York.
Gulf Interstate Gas Co.
not yet been determined.
program.
Proceeds
—
For construction
Underwriters—Carl M. Loeb, Rhoades & Co.
and Merrill
Lynch, Pierce, Fenner & Beane.
Sept 3 it wag announced Bank will offer to its stock¬
holders of record Sept. 25, 1957 the right to subscribe on
or before Oct 15, 1957 for 73,000 additional shares of
capital stock (par $10)
—To increase capital
Hathaway
June 24 it
to
its
(C. F.)
was
common
the basis of one new share
Price—$25 per share. Proceeds
on
and surplus.
stockholders
•toek.
Underwriter—None.
Co., Waterville, Me.
announced company
some
plans
soon
additional
to offer
common
Underwriter—Probably H. M. Payson & Co., Port¬
land, Me.
on
Sept. 26
Interstate
Middle South Utilities,
•
(11/19)
vestments in four
To
be
.
operating subsidiaries. Underwriter—
by competitive bidding. Probable
determined
Blyth & Co., Inc.; The First Boston Corp-.; ?•
Peabody & Co. and. Merrill Lynch, Pierce,
bidders:
*Kidder,
„
(jointly); Lehman Brothers; Eastman;/
.Dillon, Union Securities &c Co. and Equitable Securities. ;
Corp. (jointly).,Bids—To be received on Nov. 19.
& Beane
,Fenner
Montana
Power Co.
,
.
^
May 20 it was reported company may issue and sell in
the fall about $20,000,000 of debt securities. Proceeds—
For construction--program and to reduce bank loans.
•Underwriter—To be determined by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.;
Eastman
Weld & Co.; Kid¬
der, Peabody & Co.;. Smith, Barney & Co., and Blyth &
>sCo., Inc. .(jointly); Merrill Lynch, Pierce, Fenner &
Dillon, Union Securities & Co.; White,
& Webster Securities Corp.
Mystic Valley Gas Co.
(jointly).
(11/18)
Aug. 21 it was announced company
plans to issue and
$3,500,000 first mortgage bonds, series B, due 1977..;:
Proceeds—To repay-bank loans and for construction 1
sell
program.
Underwriter—To be determined by competi¬
Probable bidders: Halsey, Stuart & Co.
White, Weld & Co. and Kidder, Peabody & Co.
(jointly); The Jfjrst Boston Corp.; Lehman' Brothers,
/Bids—To be opened on Nov/18.
.
tive
bidding.
/Inc.;
Louisville & Nashville RR.
•
New Jersey Power
&; Light Co. /
V
.
expected to be received by the company some
$14,400,000
of equipment trust certificates. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
time in the Fall for the purchase from it of
Maine Public Service Co.
Aug. 27 it was announced that company plans to issue
and sell publicly 50,000 shares of common stock.
Under¬
writers
Merrill Lynch, Pierce, Fenner & Beane and
—
and sell
To
be
determined
by
competitive< bidding.
Probable
Halsey, Stuart & Co.; Kuhn, Loeb & Co., Lei)-/'
& Hutzler (jointly); "*
Eastman Dillon, Union Securities & Co. and White, Weld
Co. (jointly); Equitable Securities Corp.;1 The First
Boston Corp.; Merrill Lynch. Pierce. Fenner & Beane.
bidders:
Brothers and Salomon Bros.
man
1
Norfolk & Western
Ry.
i
(10/28)
by the company up to
(EST), on Oct 28 for. the purchase from it of about
$4,000,000 equipment trust certificates. - Probable bidn
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.';
(Bids
are
expected to be received
-noon
Northern
Illinois Gas-Co.
announced that it has deferred
1958 its plan to raise between
.$8,000,000 and $10,000,000 early this fall. No decision
has been made as to the form of the proposed financing,
but no consideration is being given to sale of common
stock or securities convertible into common stock.., Pro¬
ceeds—For construction program.
Underwriter — For
-any bonds, to be determined
by competitive bidding.
iProbable bidders: Halsey, Stuart & Co. Inc.; The First
-Boston Corp.; Glore, Forgan & Co.; Blyth & Co., Inc.
Aug. 29 this company
'until the^ first half of
}
f
Northern Natural Gas
Co.
Sept. 9 it was reported company
plans to issue and sell
$25,000,000 of debentures due 1977. Proceeds—To repay
bank loans and for construction program. Underwriter
4vBlyth & Co., Inc;/San Francisco and New York. Offer¬
ing—Expected in November. ♦
f Ohio Power Coi, (11/19) /
~.
Z
that this company, now plans tp
and" self $25,009,000 of first mortgage bonds due
<|987 and has abandoned proposal to sell .70,000 sharps
pf $100 par value preferred stock. Proceeds—To repay
bank loans. Underwriter—To be determined by com¬
petitive bidding: " Probable bidders: Hal&eyv, Stuart &
Co. Inp ; The First Boston Corp.;. Blyth & Co., Inc.;;
/Eastman Dillon, Union Securities & Co.. and Salomon
/Bros. & Hutzler (jointly)." Bids—Expected" to be re¬
ceived up to 11 a.m. (EST) on Nov. 19.
[•
Offering—
2 it was reported
•jssue
-ffc Olin Mathieson Chemical Corp.
Sept. 19 it wa§ announced company
,
plans to issue and
June
an
conditions.
Mangel Stores Corp.
19 it was reported company plans registration of
issue of $3,000,000 of convertible debentures due 1972.
Underwriter—Lee Higginson Corp., New York.
.
(10/2)
announced company plans to offer its
stockholders the right to subscribe for 210,000 additional
Proceeds—For additional capital needed in
connection with development of corporation's business
during next few years.
Underwriters—Dillon, Read
Co. Inc. and Eastman Dillon, Union Securities & Co.
was
Otter Tail Power Co.
the parent, owns
Aug. 29 it was announced company plans to offer to itp
common stockholders the privilege of subscribing for a
new
issue
of convertible
debentures.
Underwriter—
standing.
Blyth & Co.. Inc., New York and
shares of capital stock (par $10) on the basis of one new
share for each 4.95 shares held. Marine Midland Corp.,
98% of the Bank's 1,040,000 shares out¬
Price—$50 per share.- Proceeds—To increase
"
•
i&ell publicly $60,000,000 of convertible subordinate der
Ventures prior to ehd of this year, subject to market
Sept. 4 it
■
platas to issue,*n
$5,000,000 pf first mortgage bonds. Underwriter-^)
Sept. 12,; 1956, it was announced company
j=5ept.
;
are
Marine Midland Trust Co. of New York
i
.
(out of 5,000 shares outstanding) of preferred stock.
Bids
Inc.
Sept. 16 it was reported company may sell 451,894 shares
•of common stock (par., $10). Proceeds—To increase in¬
Lands, Inez. 10 shares of class A common stock • (total
outstanding); 442.326875 shares (out of 1,420 shares out¬
standing) of class B common stock; and 3,000 half shares
Kidder, Peabody & Co., both of New York.
Expected in November.
Hartford National Bank & Trust Co.
for each 14 shares held.
(9/26)
(EDT)
a.m.
Trust & Banking Co., in liquidation, at
Banking Department, 651 National Bank
of Commerce Bldg., New Orleans 12, La., for the pur¬
chase from it of the following shares of Louisiana Citrus
May 3 it
was announced company plans to issue some
additional first mortgage bonds, the amount of which has
Co.
office of State
shares held of record Oct. 18, 1957; rights to expire on
,Dec;
Lands, Inc.
Bids will be received up to 11
by
Halsey, Stuart & Co. Inc.; Morgan, Stanley &
Bids—Expected to be received on or about Nov. HI.,.;
bidders:
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly): W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
Eastern Qas & Fuel Associates
(11/18)
.Sept. 11 company applied to Michigan P. U. Commission :
for authority to issue and sell $40,000,000 of debenture. /
Proceeds—To repay advances from parent. Underwriter
—To be determined by/competitive bidding. Probable
'
Jan. 1, 1958 and for construction program. Underwriter
—To be determined by competitive bidding. Probable
Underwriter—William R. Staats &
Nov. 6.
,
Long Island Lighting Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J
Proceeds—To refund $12,000,000 of series C bonds due
Co., Los Angeles, Calif.
on
Michigan Bell Telephone Co.
petitive bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Kidder, Peabody & Co.
and White, Weld & Co. (jointly). Bids—To be opened
on
Federation Bank & Trust Co.
(11/18)
it was announced the company plans to issue
and sell $2,000,000 first mortgage bonds, series A, due
1977. Proceeds—For construction program and to repay
bank loans.
Underwriter—To be determined by com¬
Un¬
de¬
be
by
Beane and Stone
Lawrence Gas Co.
*
of properties
Underwriter—To
was
Aug. 21
^ Darco Industries, Inc. (10/21-25)
Sept. 23 it was reported registration is expected of ap¬
proximately 275,009 shares of common stock, of which
about 225,000 shares are to be sold for account of com¬
pany and 50,009 shares for selling stockholders. Business
—Manufactures products for commercial and military
1
Underwriter—Robert W.
announced company plans to raise up to
sale of new
securities. Proceeds—To repay bank loans and for con¬
struction program. Underwriter—For bonds, to be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Lehman Brothers, Merrill Lynch,
Pierce, Fenner & Beane and Reinholdt & Gardner (joint'y>.
' :V": v
approving financing. Price—At par ($100 per share).
Proceeds—Together with funds from sale of additional
Sept.
opened
$11,700,000 new money this year through
Cook Electric Co.
Eastern Utilities Associates
construction
Laclede Gas Co.
July 15 it was reported that company is planning some
equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111.
program.
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.; Mer¬
rill Lynch, Pierce, Fenner & Beane; Kidder, Peabody
& Co. and White, Weld & Co. (jointly).
Bids—To be
10.
Aug. 5 it
construction
termined
"
Conn.; and Estabrook & Co., Boston, Mass.
April 15 it was announced company proposes to issue
and sell $3,750,000 of 25-year collateral trust bonds.
Proceeds
For advances to Blackstone Valley Gas &
Electric Co., a subsidiary.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).
for
Service Co., Milwaukee, Wis.
Sept. 23 it was reported a secondary offering of 100,000
shares of common stock is planned for November, with
Co.
April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years. Underwriter—For any bonds to bfe de¬
termined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).
and
★ Johnson
lesi
thii
Fall, depending upon market conditions. Proceeds—Foi
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W„ Scranton & Co., New Haven,
aircraft and missiles.
loans
-
Feb. 18, it was reported company plans to sell not
than $20,000,009; of first mortgage bonds, possibly
mortgage bonds, to be used for expansion program.
derwriter—The First Boston Corp., New York.
bank
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley & Co. Inc.; The First Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to beweceived up to 11 a.m. (EST)
finance construction on a proposed
refinery and for other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in units). Un¬
derwriter—Lehman Brothers, New York.
★ Crucible Steel Co. of America
Sept. 18 it was announced company plans to offer to its
common stockholders the right to subscribe for 101,153
shares of cumulative convertible preferred stock on the
basis of one share of preferred stock for each 36 shares
of common stock held. Stockholders to vote Nov. 7 on
of
program.
about $64,000,000 to
Connecticut Light & Power
bonds after Nov. 1.
reduction
Proceeds—For acquisition
1987.
due
and
l.
was
*
May 16 it was reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the
Fall in addition to between $10,000,000 to $15,000,000
Transmission Corp.
Coastal
B,
Blyth & Co., Inc.
Power Co.
Idaho
(11/6)
announced that this company plans to
sell $20,000,000 of first mortgage bonds, series
it
issue and
13 it ypas reported company may offer late this
approximately $25,000,000 first mortgage bonds, but
exact amount, timing, etc. has not yet been determined.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Lehman
Brothers, Eastman Dillon,
Union Securities & Co. and Salomon Bros. & Hutzler
Fall
(EST) on Dec. 9.
21
minority
-
Merrimack-Essex Electric Co.
Aug.
Lighting & Power Co.
Feb.
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
White. Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
& Co.; The First Boston Corp.; Harriman Ripley & Co.
Inc.
Bids—Expected to be received up to 11:30 a.m.
directors
entitled, plus any shares not subscribed for by
stockholders.
Francisco, Calif.
the
parent.
bidding.
the
capital and surplus; Underwriter—None. Marine Mid¬
land Corp. will purchase all stock to which it may be
Palo Alto, Calif.
this company expects early in
November to do some additional financing.
Business—
Electronics. Underwriter—May be Blyth & Co., Inc., San
* Hewlett-Packard Co.,
49
Continued from page
San Francisco,
,
Volume
186
Number 5676
.
The Commercial and Financial Chronicle
.
.
51
(1367)
Parker Appliance
Co...
Sept. 9 it
was announced that
company may, at a favor¬
able time, sell additional shares of common stock
to the
public.
Stockholders voted September 19 to increase
the' authorized common stock
to 750,000 shares from
550,000 shares. Proceeds—To redeem $1,500,000 convert¬
ible subordinated notes to be held
by Hannifin stock¬
holders and to anticipate payment on a bank loan in
connection with acquisition
of Sept. 30, 1957 of all the
outstanding capital stock of Hannifin Corp., Des Plaines,
111; Underwriter—Hornblower &
as
Weeks, New York.
Pennsylvania fciectric Co.
Sept. 12, 1956 it was announced
sell
and
—To
plans to issue
sell
Kuhn
Loeb
&
Permian
Basin Pipe Line Co.
20 it was announced company,- a subsidiary of
Northern Natural Gas Co., may issue abodt
$25,300,000
May
of
pnew securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and $6,-
—
of
rate
.
record
of
one
Sept.
rights to expire
19,
1957
the right
stock¬
(par $20)
shares
at
held;
1
on or
Transocean Corp. of California
.
.
May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new
working capital.
■
on
man
Brothers, New York.
within
»*•
h
♦
MS
IW»M
I-
the
expected to be received by the company on"
Oct; 15 for the purchase from it of
$4,950,000 equipment
trust certificates to mature
annually from Nov.
1,
to
1972, inclusive. Probable bidders:, Halsey,
Co. Inc.; Salomon Bros. & Hutzler.
1958
Stuart
&
-
Bids
are
to
Virginia Electric & Power Co.
was
•
announced company
plans, in addition to
its proposed offering of
$8,000,000 of bonds, to issue and
sell' 262,899 shares of common
stock; (par $5). Proceeds
—To
repay,
bank
loans
and
for; construction program.
& Co. arid Blyth & Co.,
Underwriters—Kidder, Peabody
Inc., both of New York.
Public Service Electric & Gas Co.
1 it was announced company anticipates it will
sell in the Fall of 1957 or in 1958
$25,000,000 of preferred
stock (in addition to
$60,000,000 of bond now
-•
Union Gas Co.
Weld &
registered
the
SEC).
*
Proceeds—For
construction
program.
Underwriter—May be Merrill Lynch, Pierce, Fenner &
Beane, New York. "
I
'
-v.-
-
Public Service Co. of New
Hampshire
Sept. 9 it was.reported
tional
company
plans to sell
common
Ritter Finance Co.
it
3
common
>
•
5
Ryder System, Inc.
Aug. ,28 it was announced company plans to sell publicly
in the Fall an additional
200,000 shares of its common
stock.
Proceeds—For expansion
Blyth & Co.,. Inc., New York.
program.
,
.
Underwriter—
<
.
Underwriters—Snow, Sweeny & Co. Inc.
Inc., both of New York. Registra¬
tion—Expected
Aug. 21 it
1987.
Kidder, Peabody & Co. and White, Weld & Co.
Bids—To be opened
more
valuable
as an
article
of creating
way
a govern¬
aspirations of
£
if
are
also
facing
a grow¬
ing body of highly educated, technologically
tent
men
and
women
compe¬
in the field of industrial man¬
agement and production.
for them to
stop the
unrest
in
the
It may prove impossible
growing
Soviet
Union.
of
a
new
issue
of intellectual
Khrushchev
cannot
one
cent)
Corp.. at $1
It
President of Abbott
Laboratories,
and others.
Dec.
Robert
Galvin,
President of Motorola.
24—Mr.
G.
T.
Edward
S.
JUNCTION, Colo.
Bannerman
and
—
Wil¬
liam E. Cline
Securities Co., Inc., 407 Main St.
11—To
be
announced.
Field
trip to Automatic Electric's
plant, and luncheon. (Not in
the Loop.)
Dec.
5
—
Ernest
H.
Volwiler,
(par
Dynamics
share,.
intended, to
use
the-
net
are now
combustion
facilities,
and
with Filosa
ized issue of
With Armstrong, Jones
is
now
—
R
a
1
connected
p h
Beverly
H.
Armstrong, Jones, Lawson &
White, Inc., Penobscot Building.
Hills,
Calif.,^ plans
to
Nev.;
indus¬
of the
airport property suitable for in¬
dustrial occupancy; and engage in
research and development in the
field of small gas turbines and
other internal combusion engines.
to
with
;
operate and develop the Douglas-
Airport
create
and
in
Minden,
operate
an
trial park on the portions
(Special to The Financial Chronicle)
DETROIT, Mich.
10,(WMJ,000 shares.
Turbo Dynamics. Corp., with of¬
fices at 139 South- Beverly Drive,
Tahoe
Janzig
engine develop¬
install T-hangar
etc.; make initial lay¬
preparation of site for
and; for
working capital'.
Giving effect to the new financ¬
ing, there will be outstanding
630,000 shares out of an author¬
Utilities.
Nov.
is
Turbo
of
per
ment program; to
out
President, and Mr. Richard Bullwinkle, Vice-President of Texas
Nov. 21—Mr. Donald C. Power,
President of General Telephone.
a
300,-
industrial park program;
(Special to The Financial Chronicle)
GRAND
MacGregor,
on
chase plant, machinery. and equip¬
ment for the company's turbine
and
19—Business Forecast Fo¬
Afternoon meetings followed
Two With Filosa
Mr.
publicly
proceeds of this: offering to< pur¬
meetings:
—
& COi, of New York
offering
000 shares of common stock
CHICAGO, 111.—The Investment
Analysts Society of Chicago has by a reception.
Jan. 16—Midwest Forum.
following schedule
of speakers for their Fall luncheon
10
are
best efforts basis an issue of
announced the
new
wave
City
Still Russians with most of their
rum.
Eppler.
—
Dynamics Stock
Simmons
imperialistic ambitions aglow.
Oct.
securities, the amount and
Turbo
Dulles.
are
*'»
full registration will
Simmons & Co. Offers
course,
But Russians
t
of
a
details not yet available/ Underwriter
Guerin & Turner, Inc., Dallas, Tex.
-
factors such as these that sooner
or
later will prove Khrushchev and the others
wrong about the merits of Communism vis-a-vis
private enterprise. •
Oct.
\
'
made
that
announced
was
or stop technological develop¬
keep the U. S. S. R. a great power."
W.
is, of
Co., Milwaukee, Wis.",
other
Proceeds—"To
Chicago Analysts Schedule
Fall Meetings
meet the needs-and
«
It
'
"The Communist leaders
be
(10/10)
and
—Allen
prob¬
than it is a solution for the problems of a
country like the Soviet»Union, which is making
great strides in fields of material progress, but
*
Sept. 24 it
turn back education
ment
Inc.
it Zale Jewelry Co., Dallas, Texas '
reported company plans to sell $6,000,000
1, 1982.
Co.
Wisconsin Southern Gas Co.,
Underwriter—The Milwaukee
working capital and general corporate pur¬
Underwriter—Van Alstyne, Noel & Co., New York.
first mortgage bonds due Oct.
plans to issue and
late in
first "mortgage bonds
of
July 8 it was reported company plans to offer up to
$300,000 of additional common stock to its stockholders.
a
stock and for
of export
can
"
note of $1,160,500 held by City Industrial Co. in connection with ac¬
quisition of Bethlehem Foundry & Machine Co. common
.
people.
discharge
$7,000,000
Merrill
$11.12^2 and $11.50 per share, depending upon mar¬
ket conditions. Proceeds—To
was
Co.
company
Inc.; Kidder, Peabody & Co.; The First Boston Corp.;
Lynch, Pierce, Fenner & Beane; Salomon Bros.
Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Dean Witter & Co.; Lehman Brothers; White,
Dec. 11.
Weld &
Toledo Terminal RR.
Service
announced
Proceeds—For construction program and to repay
bank loans. Underwriters—To be determined by compet¬
itive bidding.
Probable, bidders: Halsey,, Stuart & Co.
150,000 shares of 70-cent cumulative convertible
preferred stock (par $10). Price—Expected to be be¬
'
its
on
about
sell
Sept. 10 it
Public
was
1957.
&
party bureaucracy and what: it is doing—^or not
doing — to give the members of that elite a better
ment which
sell
Superior Tool & Die Co.
July 26 it was announced company plans to issue and
tion the cumbersome
governmental and Communist
no
Aug. 27 it
Underwriter—To be determined by coiyiProbable bidders: Halsey, Stuart &
bidding.
managerial^elite which has
been created to run Soviet
industry —- now being
decentralized. It will not
be-easy to restrain this
class of people from
using its critical skills to ques¬
which has still found
Wisconsin
plans to issue and
bondsf series B~ due
petitive
poses.
was
than
company
mortgage
Proceeds—To repay bank loans and for construc¬
tion program.
more
both of New York.
(12/11)
Co. Inc.;
of
"The Soviet leaders also have the
growing
"Today communism is
first
of
lem of the technical and
•
Co.
announced
was
Krushchev's
life.
about Oct. 10.
on or
Electric
$4,500,000
tween
reported company plans debenture and
stock financing. Underwriter — Stroud &
Co.,
was
Philadelphia, Pa.
reported company plans to.sell an issue
$5,000,000 convertible siibordinated deben¬
tures. Proceeds
To finance plant expansion and in¬
crease working capital.
Underwriters — May be Paine,
Webber, Jackson & Curtis and Blair & Co. Incorporated,
of
and A. C. Allyn & Co.
sell
Bids—Expected to be received on Dec. 3.
—
tion program.
Suburban
Co.
Walworth Co.
Aug. 6 it
addi¬
stock later in 1957. Proceeds—For con¬
struction program.
Underwriters — Kidder, Peabody &
Co. and Blyth &
Co., Inc., both of New York.
Sept.
•
with funds from private sale of
$3,000,000 preferred
stock, to be used to repay bank loans and for construc¬
(jointly).
some
(11/11-15)
reported company plans to issue and sell
of debentures due 1983. Proceeds—Together
was
$9,000,000
Aug.
With
Southern
Sept. 23 it
(12/3)
company
Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬
rities & Co., Stone & Webster Securities Corn.: White,
,
★ Public Service Co. of New Hampshire
was
Inc.; Salomon Bros. & Hutzler.
t
Sept. 24 it
announced
plans to sell $20,000,000 of first mortgage bonds. Probable bidders for
bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
noon
31
Stuart & Co.
company,
Electric
Co.,
M]arch 8 it
(EST) on Oct.
for the purchase from it of
approximately $6,000,000
equipment trust certificates. Probable bidders: Halsey,
up
&
the $2,500,000 of common stock of Valley
it is to receive as part payment of certain
Blackstone properties. Dealer-Manager—-May be Kidder,
Peabody & Co., New York.
(10/31)
expected to be received by the company at 165
Broadway, New York, N. Y.,
Valley Gas
one
latter
Gas
Southern Pacific Co.
are.
.
,
a subsidiary ol >
Co., plans to issue,
year, $4,000,000 of bonds, $1,100,000 of note*
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
proposes to dispose by negotiated sale the first three
new securities mentioned in this paragraph.
April 15 it was also announced Blackstone plans to offei
to its common stockholders (other .than Eastern Utilities
Associates its parent) and to common stockholders of
Blackstone
vote
„
.
Valley Gas Co.
April 15 it was announced
pected to be received until the Fall.
Providence, R. I. "
Pittsburgh & Lake Erie RR. (10/15)
Bids
Un¬
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—Not ex¬
about Oct. 15, 1957.. Price—$55 per
share.
Proceeds—To increase capital and surplus. Underwriter&r—G. H. Walker & Co. and Miller &
George,
both of
construction.
South Carolina Electric & Gas Co.
Jan, 14 it was reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
to subscribe
shares of capital stock
share for each five
new
new
determined
on Sept. 30 will
approving an offering to stockholders of approxi¬
mately $5,000,000 convertible debentures. Proceeds—For
expansion and to reduce bank loans. Underwriter—Leh¬
•
the
be
bidders:
Aug. 1 it Was announced stockholders
common stock.
Proceeds—To repay advances
$9,300,000 from parent, and the remaining $16,000,000
for .'new construction.
Underwriter
Glore, Forgan &
Co.; New York.
v
'
of
holders
stock about the middle of November (method of sale not
yet determined). Underwriters—White, Weld & Co. and
Stone & Webster Securities Corp., both of New York.
Smith-Corona, Inc.
600,000 of
for'8,000 additional
Transcontinental Gas Pipe Line Corp.
Sept. 4 it was reported company plans to sell $30,000,000
of pipe line bonds and about 750,000 shares- of common
by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.; Salomon Bros. & Hutzler; Lehman Brothers;
The First Boston
Corp.; White, Weld & Co. and Shields
& Co.
(jointly); Eastman Dillon, Union Securities &
Co.; Kuhn, Loeb & Co. Bids—Expected to be received
up to noon (EST) on Nov. 7.
Co.
it Plantations Bankr of Rhode Islands (9/30)
Sept. 23 it was reported Bank plans to offer to its
bank loans and for
repay
was
Underwriter—Cruttenden, Podesta & Co., Chicago^ 111.
(11/7)
it was reported company plans to issue and
$12,000,000 first mortgage bonds due 1987. Proceeds
Probable
Lines, Los Angeles, Calif.
reported company plans issue and sale In
October of 40,000 shares of common stock (par $2.50).
Diego Gas & Electric Co.
derwriter—To
White, Weld & Co. (jointly); Equitable Securi¬
Corp.; The First Boston Corp.; Harriman Ripley &
Inc.:
Transcon
Aug. 12 it
27
—To
Co. and
Co.
—
Co., St. Louis, Mo.
Diego Gas & Electric Co. (10/31)
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this
&11
through the sale of preferred stock. Underwriter—Blyth
& Co.,
Inc., San Francisco, Calif.
San
„
Halsey, Stuart & Co. Inc.; The First
Bids—Tentatively expected to be received
Boston Corp.
on Oct.
10.
San
Aug.
determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
inc.; Merrill Lynch, Piercet
Fenner & Beane,- Eastman
Dillon, Union Securities &
ties
—
Walker &
refund like amount of bonds maturing on Nov. 1, 1957.
Underwriter—To be determined by competitive bidding.
Probable bidders:
,
company
$6,000,000 of first mortgage bonds. Underwriter
be
St. Louis County National Bank
Sept. 11 Bank offered to its stockholders of record
Sept.
10, 1957 the right to subscribe for 30,000 additional
snares of capital stock
(par $10) on the basis of one new
share for each 5% shares
held; rights to expire on Sept.
30, 1957. Price
$31 per share. Underwriter
G. H.
62
}
Chronicle)
Mutual Funds
ANGELES, Calif.—Joseph
been added to the
G. Privitelli has
Staff
J. "Barth
of
Boulevard.
Wilshire
has declared
of
Oil Stocks
Investment Position of Canadian
now
The current issue of Calvin
♦. -
industry, fu-
Canadian oil
of the
prospects, and the investment
position of Canadian oil stocks,
ture
:
"Perspective"
On the latter score,
notes
•
A MUTUAL
for
••$&*'
also
of
e1venJs'. "p10 irnmediate future is
clouded by excess productive capac*ty^and it appears, that the
problem could continue for a few
years.
It would seem prudent
among other things to investigate
oil boom and
carefully the source and depend-
"Newsletter."
ability of cash flow, not only as
between contract drilling, market.and production, but more
specifically as to particular fields,
*ince allowables betweenfields differ widely Companies whose cash
is dedicated in large measure to
debt retirement may well lose
took only 82
the
of the
average
oils
Canadian
1952
of the
133.64
to
rose
the
under
romance
declined
RESEARCH CORPORATION
influence
had
to
rose
192.96.
Y.
in
93.09
to
1954
and
peak 0f
By Aug. 26, 1957 the Index
again
Established 1930
Broadway, New York 5, N.
by
speeulation over future discoveries.
Subsequently
the
Index
NATIONAL SECURITIES &
120
Prices of Canadian oil stocks as
declined
formance
integrated
165.66.
to
the
of
1957
a
major Canadian
companies
roughly the
The per-
has
been
ground to others who can devote
same.
Incorporated
investing!
for
f
Established 1925
STa
A mutual fund invested
inve
in a list of securities
from
table
below indicates.
possible
for
selected
crated
GROWTH of CAPITAL
INCOME in the years
qq
®
Domestic
ahead.
independents
Majors
integrated
S31
14,9
1954
22.o
'
lose
17.7
;
-1955
..
•
.:
15.8*
.
six u
-
s
4,9
4.7
io!2
1 4^8
12.5
,
•
io.4
in
mutual
fund whose
first
}«j«. rut
i
i
Wi,ho>"
Princitv^'
in
■
larger
prospectus
on
the
each
of
fund is available from
your
U.
comparable nature.
well as the historical
as
;
1 )i
s. '
kjmo
4*1*1 WpPni'J
Glldi t/Il"Ill«
Diversified Growth Stock Fund,
Canadian
reports
a
shareholders
record gain in new
in
the month of
companies August, a period characterized by
The trend sharp market declines.
f f
ul accounts of this $20,000,000 mutual
fund
^ the
Berkeley Street
be expected to continue
n
since
stature. Another encouraging sign
which has affected the ratio is
that
the
successful
more
increased
1,136 or 14%.
by
^his was the largest monthly gain
Canadian oil industry gains
as
Boston, Mass,
the
jn 1952.
fund
are
T
.,
to the investor
1-
on
selected
the
ease
-
prices for
inant
year
the
con¬
upward
on
pressure
time, but added:
a
million
position of organized labor,
makes it difficult to see how there
be any very
can
prolonged inter¬
ruption in the long-term upward
trend of prices."
people might be affected.
is
Fund
Chemical
dollar
If
values
continue
to
managed,
Massachusetts
LifeFund
Atomic Research
-
Letter
Atomic
leased
by
Atomic
•
the
DIVIDEND
just",
#31
,
[Management:of '
Development jM u tua
1
Fund, Inci comments on the research
carried
being
on
J, '
'
Net asset value per share, ad-
justed for
a
100% stock dividend
°Per" paid t0 shareholders of record
AllS- 2, was $6.67 at the monthend, compared with $6.37 on Dec.
appreciably despite past 31, 1956.
'
:
is
The Fund's pol¬
is
icy
all
the
prospects
growth
atomic
Also
fusion.
in Atomic Letter
described
arc
of
phases
including
energy
companies"
in
invest
to
in
active
in
the
for
use
of
per
.
dividend [. of
.
:
t
share frotn/net **y
payable
investment income,
September 1\ 1957 to holders ;
of trust certificates of record
and
Dynamics
General
house,
General Electric.
paying
14 cents
Westing-
reactions ; by
Massachusetts/Life Fund
.
the;
in
field of controlled thermonuclear r:
(fusion)
"
re¬
•
at
-
-
the
close
of
business
.
■
September 20,1957.
SCffe
tyf{<tHocfiu<Sc{£s
Trustee
tfnUiUtnce
#31
Incorporated 1818
-
continued
radiation
accompanying
the
predicted tenfold expansion in the
of radioactive materials dur¬
use
net
next
the
ing
Fund's
five years.
management
second half
of
expects
The
im¬
1957 from its
major holding of 22,400 shares
of
Shipbuilding and
News
Newport
Drydock Co. the recent recipient
of a
contract for the first nuclear-
powered aircraft
carrier.
August Sales of
George Putnam F'd
At All-Time High
for
Affiliated
free copy
Fund
booklet-pro¬
.Purchases by investors of shares
spectus by mailing this
advertisement.
A
Common Stock Investment Fund
Investment
CALVIN
or
a
someone,
Slayton said recent cutbacks in
defense budget may help to
try, the Public Health Service has
the
years.
of the
4%
by
the
estimated that between 13 and 26
789 at the end of 1956.
gain in value over the
a
absorbed
the producer
sumer," he said.
coun¬
proved earnings and dividends in
their possibilities for
Send for
epidemic in this
297« Thls compares with $15,273,-
minished
be
"growth"
vesting in
stocks
event of an
instruments
the 1956 year-
...
onry
"The opportunities for discovering oil do not seem to have di-
mutual fund in¬
ma
n
7'
gure
At the end of August total
of
Ittat result
of
difference
to
"The essential influence remains
equity. Thus in comparison with prices over the past
few yeai's, current levels, while
high historically, are not unrea-
dilution
discoveries
with
strong, and coupled with the dom¬
assets of the fund were $20,091,-
to
exposure
11.5%
contrasfpd
to
drugs
other
and
incrba,sed
and less
mean-S
a
23%
totaled 9,353—an increase of
com-
generating
This is important
operations
began
On Aug. 30, shareholders
increasing over.
ne
amounts of cash for exploration and a 40% rise over
and development from operations, end total of 6,684.
panies
is
•••—-
-
rntins°fr?r ihDuring the month, shareholder
investment dealer.
Tub Parker Corporation
200
£>;
^
.
with possible secondary in¬
fections from the disease. In the
antibiotics
Follows Fusion
.
for that matter of
selected
six
about
risen
as y
either
cope
Atomic Fund
[tetiopmwm of current prices:"
integrated
nor
this
sufficient
created
has
1951,
"The
has
Moreover,
long-term prospects
for'"'production, demand and ex-
"Despite the peak market prices
prevailing in 1956, there was less
of a premium placed on operating
results for many Canadian. independents than at any time in the
past. The same cannot be said of
the
industry
f
.
national
gross
rises of about 32.5^o.
wage
again at the request of the United
States Public Health Service, the
oil industry has considerable
growth attraction in view of the
r
companies
A
mntoa
'
vaccine.
'
.
them
has
.—
since.
Fund's
in
United
the
<
,
hfJf-c?8ts ®xc,lmleci. f0,r,c»- ploration
cTparaMc^
Vro-
encouraging
5.8
-
lull in the
of
d 0 Alberta pl°
1
.
Three
Canadian
a
„robabie temporary
lars"
the first ship¬
make
to
of the
ments
■
and shrink, investors in fixed-income
its shares distributed by F. Eber- securities can expect to earn "next
"
J
...
to nothing" from their holdings
Granted a sound appraisal of stadt & Co., Inc.
and could, in effect, lose part of
Specific companies, it is concluded
that investment in the Canadian
•
Seven
Canadian
and
Sas-
katchewan and natural gas sales
operations, shows a
different picture, however, as the
Established
in
r^fitc wil1
be advantageous
in the imwp/iiofp futurA
hpH^p against
f
nnH lows to
tn results
of
highs and
achieved in terms of net cash gen-
) Investors
future
'me? V
income?
ifPu®
Production
exp]oration.
s 1,a i°a ™ Pi, ^e a
i"!
a
£igG
larger part of their resources to
a
'The
trend otyeaiiy
of vearlv nrice/emh
ine uenct
price/casn
P a
country
i
told
He
drug industry
disease
the
the ;•
on
product—"in real terms, not dol¬
days after the initial
of
incidence
of 1957."
comments
a
cur¬
Chemical
'
'
vaccine is documented in the
The
in
occurred
holders " throughout
States.:
•'
flu
ol'
rise
•
BULLOCK
are
income
Established 1894
ONE WALL ST., NEW YORK
objectives of this Fund
long-term
capital and
growth for its shareholders.
possible
Prospectus
5
upon
request
of
The
Address.
Lord, Abbett & Co.
New York
Chicago1
—
-Atlanta
—
Los Angeles
of
August, 1957, were
-
the
largest for any month in the
Fund's
ing
a
oyer
history,
20-year
totalling
$2,907,000 and includ¬
than
more
Name.
George Putnam Fund
Boston during
single purchase of slightly
$1,000,000 by an institutional
investor.
,
-
.
ii';
->
v
wage-price spiral were contained,
in an economic report to Managed :
Funds',; more than;-16,000V share¬
anti-Asiatic
issue
entire
Slay ton's
^
remarkably fast response
of the nation's drug companies in
rent
this
that
The
an
V
manufactured
1956 and the first quarter
Ex¬
Drug Companies
developing
of
goods
have risen only 6% since 1951,"
he said,'"but it is most significant
Jl.
analysis of individual" issues as
well as the effects of international
the
"Prices
Asiatic Flu and the
is an appraisal of individual companies.
in
TO
DEALER OR
at
assets
net
already absorbed "a
good deal" of the rise in costs. :
June
,
era
FOLDER AND PROSPECTUS
with
-
According to Hilton H. Slayton, *
diversified balanced
a
'
J
business has
fund
mutual
future prospects a catious investment approach at
Canadian oil generally, but the moment and emphasize the
as
to timing.
Implied also need for constant andy careful
and lows of the Toronto
Stock Exchange Index of 15 west-
FREE INFORMATION
FMIC is
and predicted that
passed on to con¬
"increasing -propor-
President of Managed Funds, Inc.,
^
the
to
highs
WRITE FOR
YOUR INVESTMENT
measure
ds
measured
Dividend. Serf/it
/
involves
this
.
Ybafmat
cents.
"It is in order however to point bers of the New York Stock
of judgment not out that several elements suggest change, is the distributor.
Obviously
large
only
;
of
stocks?
a
viously the dividend had been 11
in
tiqns."
30, 1957 of $6,433,501. Fidu¬
miles of potential oil land com- ciary Trust Company of New York
can
be said about the pared with one in every ten miles is the principal investment advis¬
er; Hemphill, Noycs & Co., mem¬
prices of Canadian oil 111 ttie
"What
FUND
the rate established in June. Pre¬
miles of
prospective Ga ialKi jn Canada,
much of which remains to be ex¬
plored. One exploration well has
been drilled for each 160 square
will be
sumers
continuation of
a
costs,
-
they
'
follows:
as
level
INVESTMENT
1
labor
15,
able with prospects in the U. S.
There are 770,000 square
review of the more recent trends
a
Corporation,
Denver Club Building.
Oct.
$52 million mutual
"no
afford" to absorb rising
a
that industry can
warns
longer
invest¬
from
payable
achievements and compare favor- 1, 1957. This is
Bui-
"Perspective" is devoted to
lock's
Mountain
with
Securities
share
a
income,
1957 to shareholders of record Oct.
DENVER, Colo.—James R. Caris
cents
12
ment
(Special to The Financial Chronicle)
States
fund
(formerly Hudson Fund, Inc.)
a quarterly dividend
Inc.
By ROBERT E. RICH
Joins Mountain States
michael
The head of
Fiduciary Mutual Investing Co.,
3323
Co.,
&
Thursday, September 26,1957
...
Fiduciary Mutual "Long-Term Trend
Dividend Payment Of Stocks Is Up"
J. Barth Co. Adds
(Special to The Financial
LOS
Financial Chronicle
The Commercial and
(1368)
,
Prospectuses available from
your
EATON
Investment Deafer or
&
HOWARD,
Incorporated
24 Federal St., Boston,
Mass.
-
'*
Volume
136
Number
5676
.
.
*■
The Commercial and Financial Chronicle
.
(1369)
their
principles
each
Slay-
year,
Distributors Group Sales Conference
ton said.
"But
stocks," he added,
protection
rising living costs.
common
"afford
excellent
©gainst
"An
,
investor
employing
Securities Salesman's Corner
them
for this purpose, and to participate
in the long-term growth of our
By JOHN BUTTON
economy,. should of course keep
sufficient amounts in reserve to
Now Is the Time
Ask Questions
to
tide him through those intermedi¬
ate periods when he might other¬
wise have to sell at a loss.
>
:"But
clients
who
change is discernible in
no
prospects and
..doubtless
are.
Nicholas Lamont With
few
of his clients have confined
their investments to his firm.
Where over-all
Supervisory con¬
tact has been established that is a
all
^
.
"BOSTON, Mass.—Nicholas La-
different matter;
jnont has become associated with
Nicholas
Lamont
-
Draper, Sears & Co.. 50 Congress
Street, members of the New York
and Boston Stock Exchanges.
Lamont
investment
own
Mr.
formerly head of his
was
company
in
Boston.
"electronic
tireless
rapher"
lion
capable
and
word
stenog¬
multi-mil¬
of a
daily output has been
developed, according to "Keeping
Up," monthly publication of Tele¬
vision
Shares Management Corp.,
sponsors
of the $148 million Tele¬
vision-Electronics Fund, Inc.
The
device,
manufactured
by
the Stromberg-Carlson division of
General
is
cap¬
able of turning out as much
work
Dynamics
24
every
hours
working
shift
a
to
3,000
shift
three
stenog¬
9,000
as
raphers
on
Corp.
the
basis,
the
of
Security I Like Best
actron computer
device
tion
will
with
-
be
readout, the new
used
in
conjunc¬
Remington
a
LARC computer, and
50%
Char-
a
faster than
Rand
is reputedly
comparable
any
still
investment
suggest
these
strengthen, your present
dition.
;
If, in
over
one
you
con¬
our opinion, every¬
thing' is best left alone we will
you—only changes that' can be
beneficial, necessary, and impor-,
tell
,
tant to your financial stability at
thfs time will be brought before
for your consideration."
you
I think you
sounds
20% of my customers did all their
of
bdyirig
have
first
ranks
in the production
photoflash bulbs
about
half
of
put).
Sylvania's
electronic
diodes
total
other
items
and
(accounts lor
of
and
selling
through
could
be
Materialize,
around
$2.20
lines
include
transistors, electronic
missile and computor systems, and
atomic fuels and reactor
compo¬
me.
will agree that this
sensible—none
of
us
are
professional securities men who
listened to the advice of
company's
finances
have
ment of bonds and a three-year
acquisition of Argus bank loan.
Sylvania is excep¬
early this year broad¬ tional
among
electronic compa¬
ened the company's position in the
nies with a large flow of deprecia¬
photographic products field. Mili¬ tion funds—about
$10 million this
tary business, including tubes, is
year, or $2.80 per share.
important.
Sylvania
has
done
Over the longer term, the com¬
considerable research and engi¬
pany's strong research and engi¬
neering on some advanced elec¬
neering organization; basic posi¬
tronic items. In the
military field, tion in
TV picture tubes for both
Sylvania
has
concentrated
on
original equipment and the grow¬
highly technical systems, particu¬
ing
replacement
market;
the
larly defensive and anti-missile.
eventual advent of color TV; the
The
teaming up with Corning
underlying
secular
growth
in
Glass to form Sylvania-Corning
lighting; favorable prospects for
Nuclear
Corp.
has
interesting
photography
— particularly
flash¬
long-term implications.
bulbs—and the expanding position
Earnings for 1957 have felt the
in electronics, all combine to sug¬
impact of the highly competitive
gest longer term sales and earn¬
market in the television industry
Present projec¬
while the Argus Camera acquisi¬ ings expansion.
tions place longer term earnings
tion
early this year had pre¬
potentials
around
the $6.00 per
sented the usual integration
prob¬ share
nents.
The
Cameras
must
we
with
it—
change it.
or
earlier
in the
year?"
My man
replied, "You bet I do, I've got
one capital gain that shows me a
long-term profit of $24,000 and it
hurts." As
result
a
went fur¬
we
ther, discussea his list, and I dis¬
covered
Put
that
he
owned
some
yourself in the position of
Turnpike bonds that were selling
customers who bought at a
20% discount which he had
some securities at a
price consid¬
bought at par. We worked out a
erably above the current market. "switch" that
gave him a tax loss.
What would you do if an invest¬
He still holds another comparable
ment man whom you liked and
bond and he told me of
one
The
work
The Investor Who Was Impulsive
Now Will Welcome Help
share,
been satisfactorily arranged until
1960 through the private place¬
and
fight it
earnings
per
results to about $3.50 per share.
crystal
as
it
cannot
we
prospects
industry out¬ compared with only $1.30 in the
first six months, and bring 1957
such
human behavior that
recognize
.
Called
publication said.
own
will
I think this is about
par for the other
mer£ iii his business and
Distributors Group, Inc.—sponsor and distributor
of Group
course
for most retail securities found oiit to their*'
f'hagrin that
Securities, Inc.—recently held its annual sales conference in New K
salesmen;
"
1they
would
have been better off
York City.
Seated from left to right are John L.
Ahbe, V.-P.,
had they
done
more
of
their
Director of Sales; Herbert R.
Anderson, President; Harold X.
Hope Versus Fear
homework themselves. When in¬
Schreder, Executive V.-P., Director of Research; and John S.
; Market cycles are based upon vestors are hesitant
they are more
Mayer, V.-P., Dealer Relations. Standing from left to
right are
two emotions—"hope" and "fear."
likely to listen to some sincere
Robert D. Anderson, Regional
Manager Michigan; William C.
Like it or not these primitive re¬
suggestions
of
help and assistance.
Roper, Regional Manager, Middle South; C. M. Baker,
Regional
sponses will cause more people to Now is the time to
let "fear" help
Manager, North Central States; Harold D. Hansen, Sales
Develop¬
act than all the logic and clear cut
you to do a better job of servicing
ment; Walter J. Murphy, Regional Manager, N. Y. C., N. J. and
facts you will ever be able to
your accounts, both old and new.
Delaware; Walter J. Boyd, V.-P., Reginald L.
Walsh, Regional
assemble. In bull markets caution
Last Week I Asked a Question
Manager, Middle Atlantic States; Morgan Crosthwaite, Regional
is gradually cast
aside, and many
Manager, Central States; Warren B. Stetson, Regional
To prove the point—one
Manager,
day
people make investments or en¬
New England; John B. Cornell,
last week I decided to ask a ques¬
Jr., Regional Manager, South
gage in speculations that, in retro¬
Central States; Albert E. Gordon, Regional
tion
about
taxes of everyone with
Manager, Southeast;
spect,
they
cannot
look
upon
Miles
Burgess,. Regional Manager, Pacific
whom I talked securities." While
Coast; William
F.
without wondering how they could
Doscher, V.-P., Assistant Director of Research; Robert E.
talking
with
a
client who
had
Smith,
have acted so foolishly. When the
Regional Manager, Midwest.
done only a limited amount of
readjustment to a more balanced
business with, me I asked, "How
and normal valuation of
security
about profits this year now that
prices takes place they become
Continued from page 2
everyone is talking about losses.
more concerned and "fear"
begins
Do you owe any money to Uncle
to rule their actions or inactions.
This is such a fundamental facet Sam on profits you have taken
The
9,000 Stenographers
A
but in my
and
year
overall
we
experience, covering a good many too; sure of our own judgment.
years,- I can attest that not over How many times have
you heard
Electronic Device
Equals Output of
do to
is
very
this
use
your
moves.
Then; we can go
thingsi together :with
but
thought in mind—what can
Every securities salesman
and, registered representative
familiar with the fact that
Draper, Sears & Co.
can
better
you
counts.
(Special to The Financial Chronicle)
you
many
holding securities about situation
are
completely un¬
During those days when
you were so active putting
through
scores of trades a
week, yo,u were
too busy to control all
your ac¬
---•
-
there
are
which
your
aware.
.
stocks is up."
.Among
-
the underlying fact that the longterm
trend
of money
is down,
while
the
long-term
trend - of
'
of your
another
who handled
some
actions
to
of your trans¬
and casually
asked if you would like to have
his
came
you
research
department go
list to see if they might
your
ommend
think
this
a
would
rec¬
helpful changes?
some
such
over
casual
approach
I
as
of
if
the
he
put
losses
on
is
of
your
What I
mean
some
present investments.
simply this—you possibly
investments
some
in
price, possibly
some
offer
of
railroad bonds
that also
opportunity for a logical
He is saving taxes, I
performing a
service, and
meanwhile I am keeping a client
and making my living—even in
an
"switch."
am
this
bear
market.
leave
you cold.
But
it this way, "I'd
like to make a suggestion to you
that possibly could be helpful, that
might save you further losses, or
even enable you to recover some
what
block
that
are
own
down
could make
changes that would strength¬
you
Don't
give
way
to pessimism
—make your day's work count—
offer
help—offer
suggestions—
motivate by offers of assistance
that
have
benefits tacked
some
onto them.
Halsey, Stuart Group1
Offers Equip. Tr. Ctfs.
list, provide you with
Halsey, Stuart & Co. Inc. and
income, or give you an op¬ associates are of f e r i n g today
lems and costs. The result was a
portunity to cut your tax bill for (Sept. 26) $5,445,OjpO of Seaboard,
The mutual fund management's
Meanwhile, around 36, the shares this year.
sharp
decline
in
Air
Line
earnings — 84
RR.
4*4% equipment
publication said that the Charac- cents per share in the first
appear reasonably valued at about
"Of course, I don't know these trust certificates, series R, matur¬
quar¬
10
times
this
tron
ter
of
1957
computer readout will be
and 46 cents in the
year's
estimated things, but I will promise you ing annually
Aug. 1, 1958 to 1972,
able to display and record on film second quarter. Thus profits for earnings while providing a yield this; I will sit down with you and inclusive.
of 5V2%.
<
the first six months were $1.30
take off a confidential listing of
The certificates, second instal¬
per
split-second
"thoughts"
of
the
share
compared with $2.04 the
your present financial situation— ment of a total issue of $16,350,LARC computer at the rate.of
year before.
security s
now
owned, the date 000, are priced to yield from 4.25%
J. R. Maher Director
15,000 characters per second. This
There are indications that this
purchased, their cost, and the rec¬ to 4.40%, according to maturity.
John R. Maher, Vice-President ord of
readjustment phase for the com¬
compares with about 1,200 char¬
your sales and purchases Issuance and sale of the certifi¬
of Amos Treat & Co., Inc., has of
acters per second achieved by the pany is about at an end? The im¬
capital assets so far this year. cates are subject to authorization
previously
equipment
tured by the company.
fastest
mechanical
general
use
the
15,000
with
manufac¬
-
round
-
the
-
been
portant
light
printers
in
computers.
At
entering
a
second
ings; the
new
characters
per
clock
basis,
the
tube
division
improved
able to record 259,20^,100 woras a
sales
possibilities;
or
the equivalent in figures,
curves, com¬
plete^ with,titles, scales and digi¬
tal values.
would
the
earn¬
use
of
a
be
a
the
major
nearer
the
term
company
beneficiary if
improved tone in the TV set
marv^t
gains momentum this Fall.
Should
the
second
elected
mount
of
a
director
Enterprises
Herold
Radio
your
more
of
Para¬
Inc.
department.
After this is comph ted, which may take several
weeks, I'll return the entire list
to you and will furnish you with
half-year
McKee Jaeckels Add
(Special to The Financial Chronicle)
APPLETON,
Wis.—Edward
the results of this survey.
"■..-11—
&
—
Jaeckels,
t
Inc.,
"If there
C.
Kuehl has become associated with
McKee
Then it will be analyzed as care¬
of the Interstate Commerce Com¬
Inc., and also fully and objectively as possible mission.
The entire
Electronics, both by myself and our research
•
&
nar¬
cabinet may have dramati¬
cally
diagrams and plotted
be
Sylvania TV picture
allowing the
rower
should
period of better
Stromberg-Carlson device will be
day,
en
level.
rate, the publication said, and on
a
'i
53
Irving
you
can
opportunities where
avoid furt" er deprecia¬
now
own
investments which
we
will
..
fo-m.rly
with Loewi & Co/ Incorporated.
*
l
bh?
can
make
f~
t-r
some
give
you
to
cars;
rack
cars
issue
of
5
certificates
be
secured by 900 gondola
700 hopper cars; 300 woodcars
and
500
estimated
to
cement
cost
a
hopper
total
of
$20,442,906.
are
tion in any
is
you
our
'
tax savings which
Associates
in
the
offering
are
Dick &
Merle-Smith; R. W. Pressprich & Co.; Baxter & Co.; Free¬
man & Co.; McMaster
Hutchinson
& Co.; Wm. E. Pollock &
Co., Inc.;
and
Shearson, Hammill
&
Co.1
Financial Chronicle... Thursday, September 26,105
The Commercial and
54
(1370)
The following
Indications of Current
latest week
week
Business Activity
STEEL INSTITUTE:
operations (percent of capacity)
AMERICAN IRON AND
steel
Indicated
oil
Crude
gallons each)
runs to stills—daily average fcbblsj
42
(bbls.)
output (bbls.)
output
Kerosene
terminals, in transit, in
unfinished gasoline (bbls.) at
Finished
and
pipe lines
at
oil (bbls.) at
Distillate fuel oil (bbls.)
fuel
Residual
82.2
101.6
§2,112,000
*2,101,000
2,103,000
2,502,000
Sept. 13
8,078,000
28,546,000
2,340,000
12,378,000
1,852,000
13,107,000
12,425,000
12,663,000
7,741,000
8,294,000
7,843,000
7,750,000
173,805,000
173,552,000
175,767,000
fep*- ^
Private
36,001,000
34,827,000
162,853,000
55,183,000
159,886,000
172,136,000
33,021,000
146,703,000
54,019,000
50,923,000
48,276,000
741,147
"646,118
750,640
820,849
598,792
•560,906
606,823
650,415
-—Sept. 14
of cars)'—Sept. 1%
ENGINEERING
construction
Public
AVERAGE
SYSTEM—1947-49
METAL
(E.
PRICES
Electrolytic
J.
M.
&
Louis)
(St.
tin
U.
S.
—Sept. 18
Sept. 18
—Sept. 18
—
-——
at—
Sept. 18
Sept. 18
"
~~~
'
"
Railroad Group
Public Utilities Group
Group
109,943,000
10,432,000
32,292,000
32,295,000
*8,580,000
9,600,000
10,601,000
464,000
470,000
655,000
260
237
corporate
-
5.622c
$66.42
$66.42
$63.04
$46.67
$48.50
$53.00
$58.83
26.375c
28.025c
39.575c
23.900c
23.475c
25.975c
37.375c
14.000c
14.000c
14.000c
16.000c
13.800c
13.800c
13.800c
15.800c
10.500c
10.500c
10.500c
-'14.000c
10.000c
10.000c
10.000c
13.500c
26.000c
26.000c
26.000c
25.000c
94.125c
93.000c
94.375c
106.375c
87.27
INDEX
(tons)
INDEX—
ACCOUNT
OF
Nondurables
Total
4.45
4.44
Sept. 24
4.13
4.12
4.12
3.58
Sept. 24
Sept. 24
Sept. 24
4.29
4.25
4.21
3.65
3.75
4.30
422.5
408.8
265,697
339,419
299,482
214,792
260,018
286,966
97
459,463
108.75
1,342,280
1,195,170
1,083,120
,178,430
250,970
251,320
Aug. 31
1,201,040
1,224,830
1,039,990
1,452,010
1,476,150
1,250,590
252,170
214,170
152,970
30,950
21,170
248,400
234,390
269,570
....
,
Service
Number of
Y.
N.
Customers'
other
12,300
20,000.
161,990.
158,020
181,990
PORTLAND CEMENT
Stocks
Net
*
total
Aug. 31
434,193
415,215
367,770
456,847
563,983
508,445
414,960
524,807
1,975,850
1,689,010
1,589,901
411,710
365,720
270,090
266,390
Aug. 31
1,858,673
1,888,445
1,553,480
1,559,317
Aug. 31
2,270,383
2,254,165
1,823,570
1,825,707
1,344,558
1,390,126
1,200,138
1,059,985
$68,839,507
$60,584,735
$57,827,403
Aug. 31
882,617
912,652
890.848
765,287
——Aug. 31
20,566
16,631
8,078
8,175
Aug. 31
862,051
896,021
882,770
757,112
—Aug. 31
$43,387,604
$45,343,110
$43,945,336
$38,411,756
Aug. 31
187,340
184,990
229,350
193,110
deductions
All
Aug
,
STOCK SALES ON
sales—
31
THE N.
Y.
Aug. 31
187*340
184,990
229,350
Aug. 31
674,400
647,980
501,190
456,190
STOCK
_
NEW SERIES
—
U.
S.
DEPT.
.
foods
All commodities other than farm and foods—
pound.
18.5
310.7
• -
26,462,000
27,485,000
£8,771,000
29,545,000
28,940,000
31,996,000
29,880,000
33,175,000
£2,685.000
91
92
110
CLASS I
S.
.
)
-
"
»
•
'
!
fixed
i
income—.
frcm
$81,201,633
$80,798,428
!
charges..
22,721,083
■f
18,790.844
$102,637,488
-
-
22,213,118
99,992,477
4,562,082
124,850,606
99,356,520
95,430,395
120,425,308
68,845,598-.
65,018,807
90,518.446
.:
:
-
103,519,511
4,182,991
charges__-.__.__..
4,425,298
•4,408,408
4,196,087
86,322,359
45,604,563
Federal
27,302,036
29,897,376
38,458,890
4,350,4r52
.«i
«.
1
income
taxes
i.
.
stock
On
common
On
preferred
•
.
STATES
OF
fixed
charges...
EXPORTS
CENSUS
AND
$
39,707,633
L
r
^_._-
-
"52,186,047
29,808,065
4,693,549
» -
1,055,831
3.26
i
,
>
3.14
'4,564.299
.
.
4.03
IMPORTS
Month
—
.
.
3tock^__L_i_i_^___.
to
64,495,146
«
Dividend appropriations-
of
June
j
-
Exports
$1,781,600
$1,811,300
Imports
982,600
1,101,900
*
U. S. GOVT. STATUTORY DEBT LIMITATION
of
—as
August 31
Total face
..
at
'$1.890,2t)0
•t
'
....—$275,000,000
time.—
be outstanding
may
'
'
------
public debt..—
gross
T
1,,033,400
r
;
(000's omitted): '
that
amount
any
Total
obligations
—.—__^..1
not: owned by the
Treasury
^
*
—
'
1
$275,000,000 $278,000,000
_
- -
.
-
273,845,111
272,468,742
275,564,737
108,892
106,672
79,428
Total gross
public debt and guaranteed
obligations
" $273,954,003
Deduct—pther outstanding-public debt obli¬
gations not subject to debt limitation!
443,037
'
518,890
366,710
364,600
9,635,430
8,051,730
Balance
10,311,550
9,940,350
10,*59,240
8,840,780
Aug. 31
9,207,490
8,416,330
under
OF
total
Grand
626,120
UNITED
face
Outstanding—
amount of
obligations,
authority
above
$272,575,414
$275344,165;
444,439
460,906
$273,510,964
$272,130,975
$275,183,259
STATES
GROSS
1,489,035
2,869,024
As
Sept. 17
117.8
118.1
118.0
115.1
.Sept. 17
90.7
92.5
92.1
90.0
.Sept. 17
106.0
106.7
106.8
103.9
$273,954,003
$272^75,414
4,898,310
4,475,128
5,196,905
$269,055,693
2.857 ft
$268,100,286
$27®,447,260
.Sept. 17
95.5
97.6
97.5
87.7
__Sept. 17
125.8
125.8
125.7
122.6
DEBT DIRECT
Net
funds
balances
2.741ft
2.607rb
.
debt
Computed
annual
OXIDE
'•a'-e
(BUREAU
-
2,816.740
AND
omitted):
of August 31 _s,.
General
ZINC
issuable
—
GUARANTEED—(000's
•Revised figure.
11ncludes 1,159,000 barrels of foreign crude runs.
§Baeed on new annual capacity of 133,493,150 tons
as of Jan. 1,
1957, as against Jan. L 1956 basis of 128,363,090 tons.
(Number of orders not reported since introduction of
Monthly Divestment Plan.
(Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
a
29.7
*
*329.3
.
'
"I
*21.5
48,228,064
Aug. 31
Aug. 31
Group—
Meats
one-half cent
49.9
31.3
'
..
products.
Processed
OF U.
income
Guaranteed
193*110
(1947-49*100):
commodities
Farm
*50.9
'
60,610,319
Net
Outstanding—
gales
sales
Commodity
7.5
48,380,315
,
BUREAU
$65,107,909
9
5.7
-
Depreciation (way & structure & equipment)
UNITED
Aug. 31
7.9
51.0
....j.
......
for
fixed
Ratio of income
—Aug. 31
7.9
- —
1
Aug. 31
—
—
PRICES,
I
...
available
2,123,800
6.8
21.2.
"
x
after
Aug. 31
"
1
.
Income
'
Total sales
—
•
Income
sales
Short sales
LABOR
;
operating income
income
Other
31.2
38.0
*
-
-
31.3
_
May:
Total income
-
Other
of
railway
Other
•
(Interstate Commerce Commission)—
Month
•"»
C0.2
'
*39.8 * '
G.3
330.1
■
ITEMS
67,960
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
WHOLESALE
>
r
:
(barrels )__•
Capacityused (per cent)
SELECTED INCOME
*33£
-
——•_!
(at end of month—barrels).
333,661.
sales
round-lot
■
i
(BUREAU OF MINES)—
(000's omitted);
—
Total
*63.8
40.0/ "
and dividends!
96.3
,
'
■
(barrels)
47,190
Aug. 31
*103.3
33.4
1
special-in¬
for
225.3
*240.1
,
64.2
...
payments.—..
340,870
dealers-
shares—Total
ROUND-LOT
transfer
$325.6
'
incom3.!__L.s_i
Personal interest income
173,120
145,720
<
■.
'
940,480
1,118,910.
STOCK
Round-lot purchases by dealers—
Number of shares
TOTAL
*^$344.8
__
93,230
sales
Short sales
Other
contribution
;
labor
Total
COMMISSION:
value
of
$345.5
£5,622,000
dealers (customers? sales)—
short sales—
Number
£14,156,000
103.3
Proprietors and rental incomes
-
(customers' purchases)—t
orders—Customers'
Round-lot 8ales by
£14,578,000
STATES
—
—
employees'
Other
members—
—
Customers'
Dollar
ON
4.02
.
Government
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE
3.20
4.01
industries
419,400
sales
4.24
3.D5
.
240.9
*
129,790
Total sales
4.68
COMMERCE)—Month
OF
473,400
purchases
5.65
4.61
4.62
BRITAIN
GREAT
IN
July (in billions):
personal income.,
_»
Wage and salary receipts, total
Commodity producing industries
Distributing industries
—Aug. 31
—
3.83
6.19
4.88
of
—Aug. 31
—
3.75
6.66
4.99
3.34
LTD.—Month of August
Miscellaneous/deductions
Short sales
Odd-lot purchases by
ISSUES
BANK
(DEPARTMENT
transactions initiated off the floor—
—
*27,354
4.21
1
.
Shipments from mills
223,440
value
:'!
(10)
(199)
Month of June:-"-
Aug. 31
Aug. 31
Dollar
*
Production
Aug. 31
Odd-lot sales by dealers
Number of shares
(15)
RYS.
i
,
(24)
Total
280,651
94
477,075
Aug. 31
^*$49,625
*28,617
3.98
PERSONAL INCOME IN THE UNITED
264,153
72
Aug. 31
—
'$53,909
(125)
CAPITAL
NEW
Less
540,109
210,600
*20,865
'
WEIGHTED
Industrials
425.7
98
1,398,230
*$28,760
!
.
*22,343
_
Railroads
MEM¬
Short sales
22.448
'
504,557
110.39
*$31,566
28,350
3.69
Sept. 14
110.17
-!■
•
Sept. 14
110.20
J.
.
____
__
MIDLAND
4.39
.
AVERAGE YIELD OF
100 COMMON STOCKS—Month of August:
the floor—
SPECIALISTS
i
Total nonagriculfcural income!
sales
AND
$4,402
$31,553
—
3.77
—
SECURITIES
—
3.16
Other
—
!_~.—
100.98
—
DEALERS
$6,224
J
3.59
Short sales
EXCHANGE
918
;; .'•: ' $5,545
558.
,
91.62
Total sales
LOT
574
1,680
—'
3.66
—
purchases
>•.••;
91.62
Total sales
Other
(,,*•••' •
•
Durables,
91.62
»
Short sales
Total
of
Month
Inventories—
>•'.
99.68
Sept. 20
—
$2,926
521
COMMERCE)-NEW SERIES—
June (millions of dollars):
90.77
4.30
■
$3,970
OF
89.37
3.69
96,200,000
1,365
,■» '
•
.
89.23
period
account of
* '
92,000,000
$551,500,000 *$466,000,000
i'
_
Sept. 24
Sept. 24
Sept. 24
activity——
sales
81,000,000
$3,659
Average
Sept. 14
-Sept. 14
sales
108.700.00G
June
1
surance
(tons)
round-lot transactions for
of
Insurance
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
—Aug. 31
Other
41,500.000
102.200,000
.
98.41
NATIONAL PAPERBOARD ASSOCIATION:
Total
44,600,000
1
_
94.54
——
purchases
8,900,000
45,000,000
INSTITUTE
-
88.67
401.6
Total
Ordinary
'
—
Month
—
■
84.04
—Sept. 24
Total
omitted):
88.13
Sept. 24
Other
INSURANCE
LIFE
83.03
4.30
on
PURCHASES
INSURANCE
OF
87.59
Group
Other transactions initiated
S2.GOO.OQO
9,400.000
$515,600,000
—
82.90
3.77
Total
a.
Sept. 24
Sept. 24
4.36
FOR
$185,606,000
63.200.000
'
.
106,000,000
—
_
__
Total
Banks
4.46
sales
Policy dividends
100.00
4.47
Other
values
Surrender
90.77
Sept, 24
TRANSACTIONS
9,300,000
89.78
Utilities
ROUND-LOT
$233,600,000
56,700,000
■_
89.64
4.11
OIL, PAINT AND DRUG REPORTER PRICE
1949 AVERAGE = 106
—it- $196,400,000
Disability payments
Annuity payments
<25)
:
1.
Utilities (not incl. Amer. Tel. & Tel.)
3.85
at end of
142
,
.
J
endowments
Matured
99.66
4f36
Unfilled orders (tons)
1
LIFE
OF
——
101.64
4.51
Production
benefits
92.93
4.86
Percentage of
TO
...
INSURANCE—Month of June:
92.35
4.43
deceived
INSTITUTE
—
143
135
144
PAYMENTS
91.77
4.55
Orders
POLICYHOLDERS
144.
144
—
.
94.12
4.94
COMMODITY
718,773
Aug.:
--
_
INSURANCE—BENEFIT
Death
91.64
4.44
MOODY'S
of
Month
,—
102.80
4.95
Group
$548,000
RESERVE
FEDERAL
90.34
4.59
Industrials
THE
OF
Seasonally adjusted
Unadjusted
94.26
-
Public
$459,000
405,890
94.26
-
i
-
$501,000
Aug. 16 (running bales)
89.64
—Sept. 24
-
$292,8O0
'
Railroad Group
A
—
86.77
—
Baa
$764,000
(DEPT. OF COMMERCE)—
86.59
—
—
$316,000
YORK—
89.51
.-Sept. 24
Sept. 24
Aaa
Aa
NEW
OF
Sept. 24
—
S. Government Beads
Average
To
262
5.967c
MOODY'S BOND YIELD DAILY AVERAGES:
U.
BANK
(000's omitted)
31
Sept. 24
—
——
OF
omitted)
i.,im
$66.40
DAILY AVERAGES:
Sept. 24
A*
DEPT.
S.
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
MOODY'S
corporate
Industrials
121,201,000
5.967c
26.550c
Sept. 18
—Sept. 18
-
Baa
$380,704,000
238,466,000
142,238,000
' 11,482,000
5.967c
—Sept. 18
Government Bonds
Aaa
11,339
11,68:
11,361
MANUFACTURERS' INVENTORIES AND SALES
,
—
MOODY'S BOND PRICES
Average
Aug.
COTTON GINNING
QUOTATIONS):
(primary pig. 99ft) at
(New York) at
Aluminum
Straits
of
As
Industrial
°e;pt. 17
—Sept. 17
Sept. 17
Louis) at
(East St.
Zinc
153,493,000
12,023,000
Sept. 19
at
(delivered)
$257,744,000
104,251,000
131,680,000
121,248,000
11,947,000
287
Domestic refinery at
(Zinc
RESERVE
ERAL
(DEPT.
Export refinery at
(New York) at
Ago
OUTSTANDING—FED¬
PAPER
(000,000's
DUN &
——
Month
August-
CORPORATIONS—U.
S.
COMMERCIAL
LIFE
copper-
Lead
Lead
$262,045,000
130,365,000
130
11,991,000
(per lb.)_
iron (per gross ton)
Scrap steel (per gross ton).
U.
ERNORS
114
Sept.21
v
Pig
of
COMMERCE—Month of Aug. (000's
33,712,000
113
i
—
Year
Month
146,105,000
130
■■
PRICES:
IRON AGE COMPOSITE
steel
556,000
j
INDUSTRIAL)
(COMMERCIAL AND
BRADSTREET, INC.
FAILURES
Finished
10,100,000
Sept. 14
100
=
(in 000 kwh.)
output
17,465,000
Sept. 14
.
INSTITUTE:
ELECTRIC
^,121,000
INDEX—FEDERAL RESERVE
STORE SALES
DEPARTMENT
Electric
(tons)
anthracite
Pennsylvania
i;cp:' ??
(tons)
coal and lignite
Bituminous
ecu nnn
aooq
MINES):
OUTPUT (U. S. BUREAU OF
EDISON
1n
Sept. 19
Federal
COAL
,
|tpt- ^
municipal
State and
INC.—Month
LIFE
Sept. 19 $328,6oo,000
Sept. *•> 219,069,000
Sept. 19 109,58j,000
—
Previous
INCORPORATIONS (NEW) IN THE
UNITED STATES—DUN & BRADSTREET,
SYSTEM—1947-49
„
construction—,
construction
D. S.
Total
—
of that date;
are as
Latest
BUSINESS
7,048,500
27,524,000
2,232,000
&ept"
CONSTRUCTION
CIVIL ENGINEERING
NEWS-RECORD:
6,836,850
7,969,000
AMERICAN RAILROADS:
freight loaded (number of cars)—_
freight received from connections (no.
Revenue
6,807,350
27,261,000
ASSOC IATION OF
Revenue
of quotations,
cases
either for the
are
r
■
•
in
or,
1
Ago
Ago
'•-82.1
8,270,000
(bbls.) at
Kerosene
I
29,457,000
1,952,000
foept. 13
Stocks at refineries, bulk
that date,
on
Year
Month
§82.5
6,821,250
!,
Sept. 13
(bbls.)
(bbls.)
output
oil
fuel
month ended
118,056,000
bept-13
——■*——
fuel oil output
Distillate
Residual
Week
or
production and other figures for tlx
cover
Dates shown in first column
month available.
CASH DIVIDENDS—PUBLICLY REPORTED BY
Sept. 13
■-
Crude
Gasoline
Week
^ept. 29
tons)
_fc>ept. zj
PETROLEUM INSTITUTE:
and condensate output—daily average (bbls. of
AMERICAN
Previous
_
Equivalent to—
ingots and castings (net
Steel
Latest
statistical tabulations
or
OF
$275,644,165
MINES)—Month
of June:
Production
Shipments
Stocks
at
(short tons).
(short
end
of
15,611
10,074
14,879
15,016
29,019
29,305
11,648
22,131
14,593
tons).,
month
(short
tons).
Volume
186
Number 5676
.
The Commercial and Financial Chronicle
.
.
(1371)
Continued from page 16
fusion, rather than
The Philosophyof Transportation
this
service
most
appropriate,
restrictive practices
mon
con¬
venient and inexpensive for their* dual
needs,
be
able.
they constant
the
serve
nation's
needs
developing its resources, provid¬
ing room for growing population
and
promoting
its
standards
also
reasonable
and
non-,
discriminatory in its charges and
should
able?
be
to provide full benefits to
people.
It should do this without
being
burden
either
whole
the
on
nation
through, taxation,
or
as
on
damaging to
The prog¬
even
the
and
peace of the world
services.
/Transportation
happiness
ress,-
New
depend
thority which is
and
York
manage
and
able to administer
transport
two
sovereign states
facilities
of
to
mutual
their
benefit
without
shelter
flow
itself
its
fection,
improvement
in
opera¬
tions, uniformity of facilities
equipment, what is
larger and deeper
needed
is
The
which can be
commerce clause of the Constitu¬
economically selfprofoundly; influences the tion of he United States has in¬ sustaining. It is through the facile
political, economic and social life sured to all shippers in the United movement of
materials and com¬
t
public
interest;
in
strong
a
States.,
It
has
permitted
a
per¬
vasive development of all sections
fare is protected and that all will
more
receive,
merce
and
continue
to
transportation in
amount and
no
ent
needs
an
receive,
adequate;
people.
that,
the
of
of the United
Commerce
it imperative that
respon¬
officials in Government and
large
segment
and
of
the
public
intimately understand
fundamental
modities and the exchange of
the
DIVIDEND
a
operation. The
concept of the function of trans¬
be
.
ready
forum,
distortions
of the free
flow of
com¬
before
and after effective regula¬
tion has incontrovertibly shown,
sidered
breaking <down artificial lines tary action. Whether within na¬
based on political
subdivisions, be tional boundaries or beyond them,
they "local,
regional
depending on the objective to be
Present conditions require sought, it can be
done, in the ab¬
maximum
with
fluidity
minimum
a
strictions.
just
in
or
of
of
Freight
effective
as
even
movement
artificial
rates
re¬
duties
pation in common markets. Such
barriers operate to the disadvan¬
tage of all parties.
It is not
cus¬
cartels alone which have
or
of
sence
policy,
coordinated
by
be
can
custom
as
na¬
raising barriers against partici¬
toms
production
pricing.
free
These
permit
or
to
powers
government
delegating
necessary
independent institu¬
an
an
authority
strument
act
can
for
the
impediments
just
can
mutually
the
as
beneficial
The artificial division and
through
price
to
of
standard
standard
States
to
of
a
achieved,
Through
sources
living.
largely
area
conditions,
has,
inatory
The
the
serve
as
18.
September 23, 1957
1957
160
record
30,
at
the
close
of
business
on
1957.
clared
the
on
Paper Board Company, Inc. has this
day, declared the following quarterly
dividends:
check
Board
upon
of
Directors
of
Federal
on
October 15,
1957, to common stock¬
holders of record at the
close of business on Sep¬
50(1 per share on Common Stock.
28% (•' per share on the 4.6%
ON
The
COMMON
Board
Consumers
of
Cumulative Preferred Stock.
Common stock dividends are
payable
October 15, 1957 to stockholders of
has
of
Directors
Dividends
of
Company
the payment
dividend of 60 cents per
share
on
Common
owners
the
4.6%
K. C.
CHRI5TENSEN,
Treasurer
Cumulative
Vice President and
outstanding
Stock,
payable
to
on
San
Francisco, Calif.
P
rpbert a. Wallace
the
November 20, 1957
tember 23, 1957.
$25 par value Preferred Stock are
pay¬
able December 15, 1957 to
stock¬
holders of record November
29,1957.
authorized
a
8
record at the close of business
Septem¬
ber 30, 1957.
STOCK
Power
third
quarter of the
of 60 cents per share
the Company's com¬
mon
capital stock. This
dividend will be paid by
The
DIVIDEND NO. 179
a
1957, de¬
cosh dividend for
year
Common & Preferred Dividends
G
Secretary
September 17, 1957
Bogota, New Jersey
share
of record October 16,
1957.
DIVIDEND
ON
LONG ISLAND LIGHTING COMPANY
PREFERRED STOCK
The Board of Directors also
has
of
the
authorized
a
the
payment
quarterly dividend
Preferred
Stock
as
on
QUARTERLY
fol¬
DIVIDEND
lows, payable January 2, 1958
to
share
of
owners
record
December 6, 1957.
CLASS
COMMON
PER SHARE
clared
30
quarterly dividend of
share payable
per
Common Stock of the
cause
of peace
by
cooperation
Company
of
record
on
at
the
close
October 11,1957.
to
tions,
beginning at least,
a
It
is not
such
a
September 25,1957
Edison
California
Company
DIVIDENDS
The Board of Directors has
authorized
the
,the
payment
of
following quarterly divi¬
dends:
na¬
can
COMMON STOCK
Dividend No. 191
be
60 cent* per shore;
to de¬
necessary
stroy national interest to
plish
Treasurer
pro¬
between
Southern
the
November 1, 1957, to share¬
living and to
desirable
accom¬
end.
PACIFIC
PREFERENCE STOCK,
POWER
4.48% CONVERTIBLE SERIES
The
Dividend No. 42
& LIGHT COMPANY
28 cents per shore;
PREFERENCE STOCK,
DIVIDEND NOTICE
'
4.56% CONVERTIBLE SERIES
Dividend No. 38
28V] cents
Dividend Notice
per
shore.
tariff barriers
of
Amphenol electronics Corp.
At
a
of
Amphenol
re¬
or
held
thirty
today
ob¬
costs.
o^onles
once com¬
Electronics
a
cents
quarterly
per
October
Corporation
dividend
share
was
25,
1957,
shareholders of record,
at
of
declared,
the
to
the
close of
business October 11, 1957. The trans¬
fer books will not be closed.
Dated at Chicago September 24, 1957.
FRED G. PACE,
Quarterly dividends of $1.25
per
ferred stock, $1.13
per
on
share
share
on
the 5% pre¬
the 4.52% serial
pre¬
ferred stock, $1.54 per share on the 6.16
% serial pre¬
meeting of the Board of Directors
payable
unfair and discrim¬
The above dividends
able
com¬
natural
of
on
United
consisting
today do not accept the
a
cents
of business
desire
STOCK
The Board of Directors has de¬
attributed
transportation
vast,
sincere
a
moting
and
by equally effective artificial
stacles such
MacDonald,
Secretary-Treasurer
FEDERAL PAPER BOARD CO., Inc.
economic
the
climate, yet trade is
unrestricted 'by
NO.
The high
that, although it
and
Neil A.
VINCENT T. MILES
forty-eight sovereign states with
varied
stock, payable on November
8th, 1957, to stockholders of record
common
of Directors
in¬
the "level
living of the
large
Common Stock
on
ser¬
on
economic
employment,
of
'be
can
the fact
prises
of
commodities,
production,
the
of
holders
com¬
experience, affected
of
Dividend
The Board of Directors has declared a
dividend of 10 cents per share on the
CLIFFORD W. MICHEL.
President and Treasurer.
Regional Authorities
made.
isolation
however
•areas,
HOOD CHEMICAL CO., INC.
meeting of the Board of Directors of
Limited, held this day. a quarterly
of
Seventeen
and
One-half
Cents
September
growth.
effec¬
as
unfairly discriminate.
parative
DIVIDEND NOTICES
Mines
holders
development of
raise the standard of
markets
Avenue.
(17M»c)
per
share
(in Canadian
Funds) was
declared payable on October 30, 1957, to share¬
tion with the capacity to act. Such
dual
tively be created by rates which
:
a
dividend
the power to allocate markets
and
limit
Halbert, Hargrove & Co., 115 Pine
no
to
tional.
At
Dome
and
longer con¬ r v This same result can be achieved
as -a- local
or
provincial between ' contiguous
nations
as
Transportation is the key well as within nations by volun¬
matter.
(Special to Thb Financial Chronicle)
LONG
September 11,
abuses which might affect the na¬
tional. or individual interests of
benefits
local
can
ex¬
LIMITED
September
DIVIDEND
Commission,
insures
through the availability of
history railroads merce between the states would
essentially confined to local have been meaningless, as history
portation
With Halbert, Hargrove
pres¬
illustrate, the
DOME MINES
States, implemented
In their earlier
and
To
precursor to
October 22nd, 1957.
Constitution
the Consititution guaranteeing the
Non-Discriminatory
interest
longer corresponds to
of
the
a
tranquility.
NOTICES
...
"
were
of
peace and
DIVIDEND NOTICES
com¬
importance and
significance of: transportation to Shippers, cannot arise,
or,"if they,
the
individual
and
■' national arise,
cannot' continue.
Without
Welfare.
this machinery, the few words in
v
progress
thinking
for the most effective methods to
on
sible
a
The interstate
clause
fnakes
know,
tentment which is
BEACH, Calif. — Willis
pression, "Carrying coals to New¬
H. Merrill has
joined the staff of
equal terms is the by the Interstate Commerce Act
Government.
Such duty and administered by the Interstate
duty of
re¬
of the
the
country and has permitted
operation,
the facilities,- services- and
equip-, the free play to the economic
ment of transportation.
Its vigor forces which ultimately make for
and health is of national concern. better
products at cheaper prices,!
To assure that the national wel¬ in other
words, more things for
Safe
can
utmost
contribution
efficient
transportation
prosperity and con¬
to a common
common under¬
perfect development because-
nation.
orthodox
past
a
so
a
the
and
standing of the contribution of
monopoly
can
be
controlled
Competitive opportunity by all transportation to the general wel¬
through governmental regulation. persons and localities in the nat¬ fare
of peoples.
Under modern
However, the first and most im¬ ural common markets is one of
there
is
no
nation
portant objective is to insure its* the chief benefits the interstate conditions,
It is clear that there is
retard
all.
-
-
and
its
through
■
If the only way to attain
states or the prov¬
extremely desirable and be¬ inces of- a single country. If such
neficent result, the various forms of conditions were
identical every¬
transport must be placed in a posi¬ where, there would be no need for
tion of monopoly,_ then it should
commerce, in fact, no progress.
be done. Any abuses which
might
Unimpaired
arise
Interstate Commerce
from
such
a
posture
of-
of
make
can
make
only in relative stagnation for world
-
a
a'
owners.
it
fullest
of
this
most
help the Other.
country's economy
impact which
a
the
transportation
sult
New
common
the
on
To
from
prejudice to the sovereign rights castle" was supposed to express
commerce, and the of either of
them.
On# a larger the ultimate in futility.
Today
spreading of the production of
scale, the European coal and steel coal is almost
man's inventive genius.
literally being car¬
Clearly, community is
demonstrating that ried to
by this I do not imply that con¬
Newcastle, from a distance
the welding together of
mutually
ditions of production and use are
beneficial objectives can be ac¬ of three thousand miles, and is
or should be
equal in every state
actually serving the consumer in
without
or
the
undue
country. Such a theory would complished
England.'
be
unrealistic
since
we
know sacrifice of fundamental sovereign
that taxation, natural
The challenge of the atomic
conditions, rights.
age
manpower and skills, raw materi¬
makes it imperative that
each of
Thus, in addition to such things
als, services - and credit all vary
the
as
freedom-loving nations search
physical and mechanical per¬
even within the
free
of
life, transportation must not only
be flexible, sufficient and efficient
but
too
are
vices that each can
accomplished exist. The
of
as
know that
now
their ultimate welfare.
of
wiping out,
Jersey, by compact, have estab¬
discriminatory lished the Port of
New York Au¬
or
such artifices
-
:
To
pricing
freight rates. They
vari¬
or
such
be
can
States
of
the
of sectional or national
interests
should be the key to its
achieve¬
ment.
Ready examples of how
55
Secretary
ferred stock, and 40 cents
per share
stock of Pacific Power &
on
the
common
Light Company have been
declared for payment October
10, 1957, to stockholders
of record at the close of business
September 30, 1857.
Portland,
Millay, Secretary
Oregon
September 11, 1957
,
<
October
31,
are
pay¬
1957
to
stockholders of record Octo-
,ber 5. Checks will be mailed
from the Company's office in
Los Angeles, October 31.
P. C.
HALE, Treasurer
September 20,1957
The
Thursday, September 26,1957
Commercial and Financial Chronicle...
(1372)
56
India
Delhi,
BUSINESS BUZZ
on..
from the Nation'#
A
Reports by industry
—
gJ
Stores, 30£; Automotive Dealers
and Gasoline Service Stations,
g~k~M I
A. \J
.
and Accessories
Furniture, Home
Appliance
Stores, 35£; Drug Stores and
Proprietory Stores, 150—U. S.
Department of Labor, Bureau of
Labor Statistics, 341 Ninth Ave.,
New York 1, N. Y.
Apparel
350;
45(?;
Stores,
Furnishings
C.—With
WASHINGTON, D.
enter a
find
the Nation's airlines
jets,
in
themselves
for
squeeze
a
capital.
new
represent a billion dollar in¬
dustry, but they have on order
they
start
their flights the
turbojets will be cutting pres¬
flying time nearly in half.
For
instance, the flight from
New York to Los Angeles will
ent
require about four hours and
27
1957
headaches
million
cost S5 million each.
turbojets will carry
to
going
new
to 150 passengers at a speed
miles an hour.
Passen¬
up
of
operat¬
$2
But new modern jets are
each.
The
are
cost
that
craft
ing
numerous.
are
today
airlines
The
600
pressurized
in
fly
will
gers
weather.
cabins far above the
Congressional Aid
of
Congress in the closing days
the 1957 session
approVed
two
"But
airlines, particularly the feeder
lines.
One law gives the Civil
Aeronautics Board authority to
lender up to 9%
against loss of principal or in¬
guarantee
a
to
made
terest
$5 million.
be
...
The
other
lines to
use
air¬
permits
law
equipment trust fi¬
their
Under this instrument
buying
when
nancing
planes.
bank
a
line.
feeder
a
guarantee would
Maximum
could obtain
mortgage on the
a
airplane for which the specific
loan is made. Prior to passage,
i
a
have been
the plane should
would
bank
not
able to recover
the airline default.
Any recov¬
have been through
bankruptcy proceedings.
ery
would
bill designed to aid
the jet age transi¬
Another
in
airlines
tion
period passed the House
and is pending on the Senate
calendar.
Therefore, it could
early next year after
Congress
reconvenes
Jan.
7.
The measure would permit an
airline to devote capital gains
come
up
sale
the
from
without
of
airplane
an
the gain
earnings
by
having
marked
as
ear¬
the
CAB. and thus have the amount
rates
the CAB
or
mail
the
from
deducted
,
— A
Developments since
Report of the U. N. Special
Committee—Assembly of Cap¬
tive European Nations, 29 West
57th Street, New York 19, N. Y.
(paper), $1.00 (quantity prices
on request).
find
of the
the gross revenues
try report—Live Better Electri¬
cally
Street,
while
the
pay
subsidy."
BRIGHT SPOT IN A TROUBLED
Every¬
Fare
CAB
The
remained
has
from
the same."
Chairman
expressed confidence the
turbojets will earn their
He
new
the
it
ized
new
a
000
able to
be
would
number
would
number
of
year
carried
passengers
are
by the S. S. United States, the
fastest big ocean liner in the
it
when
built
was
four
cations
conducting
creased fares,
decision
carriers
the
of
be a
Additional hearings
for
in¬
year
years
are
sched¬
final determination,
the CAB turned down
terim
fare
raise
for
a
6% in¬
eight
do¬
mestic trunk lines.
war
the
new
turbojet is
being built does not mean that
manufacturers have stopped
building piston engines.
Do¬
mestic
year
new
trunk
lines
alone
this
will take delivery of 136
planes, and 113 will be the
latest four-engine types.
Industry
Stuart
of
Net
is
population
veteran
Of this number
000.
World
in
served
their
average
more
than
Declines
G.
tion of America, said the trans¬
plane
manufactured
in
; u 19311 was capable of carrying 28
I
Americas
age
erage
age
av¬
is 28.
Approximately 900,000 are
duty" veterans, having
in
and
the
There
fewer than 3,-
are
American
War I veterans
age
is 63.
-still-55,000 Spanishveterans ,\a
their
average
there
are
age^
100
time
on
1,
other
than
raphy
i
is
eligible
GI
for
A check
I passengers over relatively short
shows that Congress
Current
and
buy
appropriated
at the 1957 session
84.655,504,900
Administration
Veterans
to
grams
various
the
for
until
run
pro¬
June
30,
However, when compared
1958.
up
farms
Feb.
Credit Prob¬
of National
Conference,
Credit
Business
of
Administration,
Uni¬
versity of Denver, 1445 Cleve¬
land Pi ace, Denver 2, Colo.—
Mil¬
set
in business.
Eastern
ably spend for the same
magazine
the Middle
—
covering
Economic
and
India
New
(cloth), $3.
Register of Defunct and Other
Companies Removed from the
Stock Exchange Official Year
(London), 1957—Thomas
(Publishers) Ltd.,
Old Broad St.,
London E. C. 2, England—30s.
Book
Skinner & Co.
Gresham House,
(New York office, ill Broad¬
New York 4, N. Y.).
way,
up
to
of the money
where
nearly half
voted by Congress
Relation to Na¬
and Product —
Tax Foundation,
feller
Inc., 30 Rocke¬
Plaza, New York 20, N. Y,
(paper).
„
^
Paynter Co. Branch
Colo.
BRUSH,
—
Paynter and
of
Ft. .Morgan has
opened
a
branch office at 113
Clayton Street, under the direc¬
tion of Stanley B. Paynter.
:*
Company
under
ing
the
National Build¬
management
of
Allen J. Cutler.
TRADING MARKETS
Nation's
dent and
Fashion Park
*5*
^
United States Envelope
Morgan Engineering
National Co.
veterans,
is likely that
are
veterans.
veterans.
will
Flagg Utica
FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET
TEL: HANOVER 2-0050
_
The 22nd amendment
LERNER & CO.
HEW YORK 5, N. Y.
TELETYPE NY 1-971
-
It
be
•
-
-
.
Investment Securities
Boston 9, Mass.
! V-'f J Teletype
10 Post Office Square,
the next President
Vice-President
Riverside Cement
to¬
Yice-President of the
States
Botany Mills
Campbell Co. Com.
Indian Head Mills
Carl Marks & Co. Inc.
40% of Population
gether with their families, make
up nearly 40%
of the United
States population.
The Presi¬
and
Income
tional
spent,
United
in
Burden
Tax
A. S.
and the Defense
programs
Now
Com-*
2 Park St., Boston, Mass.
period,
appropriations do not
huge.
Nevertheless, the
Department appropriations
is
Mifflin
Houghton
East—Eastern Econ¬
omist Ltd., 52 Queensway,
VA
point
(paper).
Department will prob¬
Defense
YA
—
pany,
office in the First
Economist
with the §34,000,000,000 that the
the
C.
—
paper—copies available on re¬
quest from
New York State
New Wittenstein Office
Consumer Finance Association,
Woolworth Building, New York \ WATERLOO, Iowa—M. Witten¬
stein & Co. has opened a branch
7, N. Y.
[This column is intended to re¬
flect the "behind the scene", inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]
D.
Law
Y.
March. 24-26,> 1957—College
con¬
and
Consumer
Consumer
of
themselves
by
issued
lems— Proceedings
•
homes
and
economic
literature
son
or
-
i
—
Street, New York 1, N.
honorable
loans.
latest
C.—
governments and international
organizations — Chronicle of
United Nations, 234 West 26th
veterans- have taken
advantage of the loans to build
lions.
of
technical
after service of 90 days or more,
Indian
Fall
Uni¬
Nations
Bibliog¬
United
Service
Document
1940, and prior
discharged under
1955,
of
Chronicle
26, 1947, or on or after
ditions
d
and
is .80,
more
or
n
16,
—
510, Chapel Hill, N.
(Paper).
insur¬
June 27, 1957, and prior to
average
War
Sept.
to July
World
their
There
now
after
Hill
Chapel
From
Box
Any person who served in the
armed forces at any
Press,
Chicago
versity
of
North Carolina—•
University of North Carolina,
'
ance.
II
War
War.
Korean
are
000,000
and
World
both
insurance; $640,000
hold $6,600,-
government
of
Publications scheduled by
veterans
600,000,000
"double
served
Books
of special nonconvertible, nonparticipating GI term
24,000 disabled Ko¬
rean veterans have $239,000,000
term and permanent insurance
available just to them; 300,000
World War I veterans hold $1,-
is 38, and
served in
War and their
of Technical
Growth in
the
Philip M. Glick —
Chicago 37, 111., $5.50.
insurance.
and
—
University
000.000
22,600,II
life
Korean
15,300,000
War
5,000,000
Korean
The
Tipton, President
the Air Transport Associa¬
port
Assistance:
$44,000,000,000.
service
great influence on the affairs
of
this Nation.
The current
a
seem
The fact
Administration
About
5,000,000 World War II veterans
hold $35,500,000,000 of national
Population
6,
And Other
Studies
in Administration —
Professor C. Nortbcote Parkin¬
Parkinson's
Nearly 6,000,000 hold GI in¬
policies
valued
at
generations America's
veterans are going to have
Avenue,
for European Eco¬
Cooperation—Recent and
Washington
veterans
admitted to the government
nearly
For
away.
uled to be conducted next year.
a
The VA
half-million
a
341
1, N. Y.
Forthcoming Publications
—O. E. E. C., Suite 1223, 1346
Connecticut
Avenue,
N.
W.,
presently
VA
Depart¬
S.
Ninth
Statistics,
New York
nomic
surance
War Yets
ex¬
but the agency's
may
Pending
The
U.
Organization
summar¬
CI Insurance Policies
ago.
the
recently
operated hospitals.
million
which cost $70
world,
Affairs
Veterans
of the broad activities
VA.
the
Teague of
Olin E.
—
Labor, Bureau of Labor
ment of
third term.
patient load on an average day
is 115,000. - During an average
the
approach
some
a
operates 173 hospitals.
This
more.
or
passengers
of
60,-
carry
House
Committee
As an example, he said,
jet airliner is used for
450 trans-Atlantic trips a year,
way.
if
serving
Handbook
Outlook
edition
—1957
has barred General Eisenhower
-
is
tensive hearings into the appli¬
Streets, Philadelphia 39, Pa.—
$17.50.
veterans, and they are in
their 80s or early 90's.
Increases
WORLD
Occupational
War
Seek
Oliphant Haynes — Chilton
Publications, 56th & Chestnut
D.
cost of aircraft—
fare
Equipment—
Handling
Materials
thing involved in running an
airplane has gone up—-wages,
fuels,
Project, 205 East 42nd
New York 17, N. Y.—
(Paper).
cents.
parts,
Better—iElectrically—Indus¬
Live
industry
increased by ll%*over the pre¬
vious year, but the net income
declined
by 10%.
The profit
margin before taxes in the past
21
months
has
slipped from
12.11 cents on the dollar to 5.76
scheduled air transport
"The reason is simple:
of
Survey
the
jet
lines
N. Y.—
York 18,
New
Street,
$4.95.
Hungary Under Soviet Rule
approach the era
we
as
institution
lending
or
The
transportation, the air¬
themselves trapped
at the point of diminishing re¬
turns," said the chief of^ the
trade
association.
"Business
booms
and
profits lag.
Last
of
Furniture
—
F. W.
Dodge Corporation, 119 W. 40th
5.32
was
mile.
Modern
Del Fabbro
Mario
—
and
Build
to
How
mile.
per
the
aid
to
designed
bills
com¬
fare is 5.28 cents
average
year
riod
fare
the
when
cents per passenger
minutes.
Meantime, the transition pe¬
association,
posed of scheduled airlines, says
that the-current ■-average air¬
line fare is less than it was in
planes. When
$2 billion of new
travels.
swifter
day
trade
The
1938
scheduled airlines today
The
compared
as
present
turbo-
four-engine
with
now
speed of 160 miles an
with the
stages at a
hour
States preparing to
new air age a year from
the United
—
Building Materials and Farm
Equipment Dealers, 20c: General
Merchandise Stores, 35£; Food
JLjL m i/%A/
Capital
Retail
in
Earnings
Employee
Trade
Behind-the-Scene Interpretations
per
rupee
one
—
copy.
Telephone
•.
>»%Ir iV- -V -%j*u
Si
: -
HUbbard 2-1990
BS 99
@FedFRASER