Full text of Commercial and Financial Chronicle : September 27, 1956, Vol. 184, No. 5572

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OF MICHIGAN

CANADIAN INVESTMENT OPPORTUNITIES FEATURED

OCT

lf<H

BUSINESS JOMMItTMTIM
HMHY

Reg, U. S, Pat. Office

Price 40

7, N. Y., Thursday, September 27, 1956

New York

Number 5572

Volume 184

EDITORIAL

The Democratic

busy try¬
ing to convince the farmers of the country that
their present state of "depression"—to use a term
chosen by Mr. Stevenson]— is to be charged
against the Republican party in general and the
Eisenhower Administration in particular.
It is
politicians

are. now

By

:

price ilevel

j

with

but to optimistic

:

with

trialist

was

year
now

for all lines of ac-,

ahead

5%

last

of

the second quarter, and it "
appears
that results for the

in

as

crease

some

1955 GNP rose 7%
now

of

-

■

George

Mitchell

W.

CANADIAN

banking and financial facilities

major

areas

sound, healthy growth

a

of economic activity, that is

throughout the Free World, and envied

Commie-captive lands. Those with an invest¬

ment turn of mind in many

Continued

*An address by Mr. Mitchell before
American Statistical Association, Detroit,

LONG-TERM

on

page

of their funds for

47

dend

predictable growth, safety, divi¬

durability and expansion.

the Annual Meeting of the
Sept. 10, 1956.

State, Municipal

LETTER

FOREIGN
A vailable

on

ON

THE FIRST NATIONAL CITY BANK

MEMBERS NEW

YORK ANO AMERICAN

NEW YORK 5,

■':*

CABLES COSURNHAM

N.Y.

•

Dl 4-1400

Bond Dept.]

T.L.WATSON &CO.
Members
New York Stock

American

gouthwedt

•

v;/,

Bonds and Notes
^ ' i ! V ' U U H 4 l.t »

> V

>

■ 'V

Commission

Orders Executed On

Canadian Exchanges At

York

THE

Stock Exchange

Chase Manhattan
BANK

$100,000

The

Municipality of
Metropolitan Toronto
All

Payable

Regular Rates

in

October

DEPARTMENT

United

Price 99

to

to

15,

IRA HAUPT & CO.
"

Members

and

4% Debentures

Non-callable
CANADIAN

BOND DEPARTMENT

REQUEST

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Markets Maintained

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YORK

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v

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other Principal Exchanges

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yield 4.125%

Department

MONTREAL AND TORONTO

MEMBERS NEW YORK STOCK

<£ou£Aw€4t COMPANY

New

1965

Teletype NY 1-2270
~

25 BROAD




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34 offices from coast to coast

CANADIAN
SECURITIES

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ESTABLISHED

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TELETYPE NY 1-2003

To

SECURITIES

Members

120

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DALLAS

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OF NEW YORK

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15 BROAD STREET,

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ARE NOW AVAILABLE

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BANK

the

Public Housing Agency

"POCKET GUIDE FOR

CORN EXCHANGE

of

f and

--LATEST.,..

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INVESTMENT

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COPIES OF OUR

HAnover 2-3700

N.Y.

page

stocks

Ws

Securities

30 BROAD ST.,

on

PAYERS—An integral part of the cover page

DIVIDEND

Progress and Prosperity" are the tables showing Canadian listed
which consecutive cash dividends have been paid from 5 to 128 years

"Canadian

Municipal

DEPARTMENT

They have been

Continued

II. S. Government,

BOND

nations have turned

increasingly to Canada for prudent employment

in

CHEMICAL

of

provinces, strengthened and

Canada, and fostered

admired

in

appears

of the Western

in the

in real

that the in¬
in 1956 after adjustment for
It

of the New Deal and the
Deal, carried forward as they were through44

of Liberal government have

years

streamlined the

price changes will be only about 2%. Moreover, since
the end of 1955 to the present, the rise in physical vol¬
ume has been modest, indeed.
A confirmation of this

AA

troubled world where

a

a

and

terms.

most

smoothed out the earlier Socialist tendencies

this gain.

1954

In

investor.

or

Twenty-one

:ri

whole will approximate
Employment, total factory
output, retail trade, business capital *
expenditures, and totaT construction
are
all heading for new highs.'
w
But,.advances in dollar measures
of activity are being influenced more
and more by higher prices. Between

year

a

countries are beset by inflation, Commu¬
nism, or dictatorship; where millions of people
are illiterate, half-fed, and living in a most primi¬
tive state; in such a world Canada presents the
welcome contrast of modernity, political serenity
and sustained prosperity.

greater certainty

.running

is

economy

many

tivity, but for virtually all aggregate
measures.
The Gross National Prod¬
uct

Contemplating the Canadian

;

decreased liquidity aids
control inflation.
^

power to

programs

telephone:

on

timber;

pleasing pastime for the economist, banker, indus¬

that Labor Day lies

record year; not

their natural func¬
during the past few years and even decades.

State and

notes

current

some

ships and blue chips. Also a panoramic
catalog of premier Canadian equities with
special citation of those with long records of
uninterrupted cash dividends.

behind us, it is possible to
the manner in whicn
the economic picture is shaping up for 1956. It will be a

laws had been left to perform

on

review of Canada's

autumn

minerals and mining, transport and

Avers

increase*

Fed's

determine

all, the people of this country, including the
farmer, kept certain plain and simple facts about
this situation clearly and constantly in mind.
There can be little doubt that various acts of the
Federal Government in recent years, under both
Republican
and
Democratic Administrations,have served to aggravate a condition already
existing and to prolong the period of ultimate
readjustment which must inevitably come sooner
or > later.
Surpluses would not have j been so
burdensome and so persistent, and production
would have been much more ready to adjust itself
to the effective
demand, if natural economic

\

an

economy,

-

it

DEALERS

Presenting

private deficit financing. Contrasts G.N.P.
7% real rise for 1954-55 with expected 2% for 1956,
and notes "rolling adjustment" pressures can induce

Now

article

year,

"new era" of

be immensely helpful both
to the nation and to the farmer himself if, despite

Continued on page

1956

a

be attributed to Federal fiscal policies,

";>""Tt would, however,

,

record

,

Enterprise Economist

faster pace than economy can
dollar stability; savings-flow
no longer can be 'met by decreasing liquidity, and that:
this trend may be reversed. Hold price inflation cannot

in November.^

..

a

J

By IRA U. COBLEIGH

,

,

support without threatening

*

^

depicts

capital formation is at

political practice in election years,
supposed to have paid off handsomely in
1948. Of course, Republican politicians are not
wanting who do not hesitate to tell farmers that
many, if not most of their woes are a result of
the
errors
and unfortunate programs
of the
Democratic party; To this kind of pof-and-kettle
exchanges we fnay as well reconcile ourselves
for a period of weeks until after the voting early
and it is

Fair

;

accompanied by suddep number one problem of liquidity.
In analyzing liquidity deterioration, Mr. Mitchell opines:

all too familiar

But the

official

Bank

Reserve

;

tions

GEORGE W. MITCHELL*

Vice-President, Federal Reserve Bank of Chicago
.

Copy

a

Canadian Progress
And Prosperity

It On the Business Outlook
See

We

As
r

Cents

Co.

Dottimox Securities
Grpokatiom

EXCHANGE

1 NORTH LA SALLE ST.

CHICAGO

40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

111 Broadway,
WOrth 4-6000
Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle

For Banks, Brokers, Dealers

The

only

American

Security I Like Best

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

participate and give their

Bought

A

—

;

Quoted i

jsjew York

Prospectus

on request
VALUES

is

insurance

force.

though

New York Hanseatic

■

i

it

of

one

Associate
American

'

Member

Stock

West

120 Broadway, New York
WOrth 4-2300

5;

Teletype NY 1-40

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN

Private

Wires

to

in¬

stock

FRANCISCO

stock

Principal Cities

only 10.2

been

share

Henry

of

earnings of $47.39

before

contingent

only 5.7 times.
half

RIGHTS

SCRIP

&

were

considerable
•

"

York

Stock

Exchange

Stock

Exchange

V?:.-

~

■

TEL. REctor 2-7815
,

accounts

to

make

it.

the

shareholders

paid out of the

Trading Markets ^ '

"

'

ac¬

typically most Canadian

life
corppanies transfer only a
small amount of earnings from the

profits

on which a large and grow¬
ing investment income is earned,

Telephone Co.

all

Lynchburg, Va.

^

of

which

is

accruing

1

LD 33

i

in

force

of

$1,186

Tfading Markets

y;

?

Birdsboro Steel f

best

department

in

National Pool Equipment*

as

Prospectus On Request

the

shareholders' viewpoint
all of the earnings of the non-

ings

ftremecmiComparu^
1929

37 Wall St., N. Y, 'Tel. HAnover 2-4850

to

accrue

Most of me

the

years

-

policy

of

The

market

more

value

of

Aetna

Life, one
of the major U. S. life companies,
buys $32.15 of non-participating
insurance in force of which $5.55
is ordinary and $26.60 group' in¬
surance,
whereas $1 of market

in the life

is

written;

in

re¬

subsequent

modest by
Therefore a rapidly

growing life insurance company's
earnings are penalized by these
new

business expenses and to ad¬

just for this factor, it is
and

$5

crease

per

common

analysis to allow $15
thousand for the in¬

in

ordinary life and group
in
force
respectively
(ordinary being more profitable
than group). This adjustment has

MUNICIPAL BONDS

insurance

■F. W.-

CRAIGIE&CO.
84

been made to Great -West's

earn¬

ings and an additional $2 per
thousand has been allowed for the
■increase
surance

in
in

all

participating

force since

participating

5%

department's

in¬

of the
earn-

practically

at

.

Call

economy,

.

or

write

Yamaichi

corn-

V'-:f

Established 1897

Home

Office

Brokers

111

Porto

&

Tokyo

—

70

Investment

Branches

1

Bankers

Broadway, N.Y.6 COrtlaudt 7-5680

1945

BOUGHT

SOLD

there

were 22,000 phones in
At present there are 58,000.
number of telephones has

The

than

doubled

in

10

L A DARLING CO.
Unusual New

years

and is still

increasing. A planned
extending the dial serv¬

program

under

and

way

is

far

Development hi

Movable Partitions for Offices,

Schools and Hospitals

ice and expansion of toll facilities

is

—

QUOTED

-a".

from

complete.
- \/"
of Great-West buys $43.90
Some recent statistics reveal the
non-participating insurance in
following:
,1
force of which $20.40 is ordinary:
v*. 1
6 Months
Year
Year
v

And Adjust-A-Bilt Wall

'*>

;

value

Sections for Homes

of

,

and

$23.50 group insurance.

As is the

ings

are

from

provides

the

the

for

conservative basis

on a

as

new

mainly on an
interest assumption of 2 %'■% and
3%.
Reserves are computed en¬
tirely on the net level premium
basis, which is the most conserva¬
tive

basis

and

has

the

case

with

all

life

effect

less than

% % of total assets.

companies

seems

very

bright as in
the
next. quarter
century life insurance in force is
expected to quadruple to
close to $100 billion as
of

increases

population
and

a

in

and

the

a

figure

a

income

doubling of life insurance

in force per capita from the
pres¬
ent level of around $1,600.
In the
U.

S.

industry leaders are also
predicting dynamic future growth
for the life insurance business.

Great-West's
therefore
ture

that

prospects

available

at

'

With

only

10.2

its

shares

times

$1.63

the

who

shares

of

stock.

Since

the

outstanding

last

the

on

a

income

anticipated

fine opportunity

been

American

,

DETROIT
Woodward

American

industries

'/■'■

Detroit Stock Exchange

Stock

Puerto Rico has been attracting

':

1051 Penobscot Building

Exchange.

Tourists

aged.

have

also

been

The increasing

>

,,,

1

26, MICH.

2-3855

DE

75

* Branch Office—Bay City, Mieh.

>

with

zation

and

greater

encour¬

industriali¬

opportunities

for

better housing and

are

raising the standard of living

for

the

entire

education

population.

at

year,

is available to

,

These

factors will give great impetus to
the

continued

'growth

of

the

company.

One

the

factor

to

franchise

1984,

the

erty

has

the

but
to

power

in

be

cons;dered

under

which

is operating.

company

nal

to

franchise

1964

•Saving^
is

the

The origi¬

been

extended

government

has

purchase the prop¬
and

at

a

10-year periods

value

by appraisal.

arrived

at

At the present time

the book value per

$24.00

share.

per

market

price

25V2

has

and

the

over

21%,

stock

is

7%.
very

view of the above.

company's

fluctuated

the

be¬

N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocks

recent
FOLDER ON

With dividends

being paid at $1.60
yield is

share is about

The

price being 22

earn¬

ings before contingent taxes, and
1956

Members

Midwest Stock Exchange

year,

company's - shares have

listed

taxes, and 5.7 times actual

higher levels than last

MORELAND & CO.

capital

January of this

tween

even

$1.51

about 80% of the 500,000

own

year's earnings after all contingent

with

753,884

';

are

as

serves.

813,605

$1,10

"

company is controlled by
International Tel. & Tel. Co.

thereafter

promising as the fu¬
of these two major markets
it

548.570

"

The

result

Canadian

national

1954

inducements of favorable tax laws.

is

insurance

The future of the Canadian life
insurance

Net Income

Per Share,

of; many

companies,
consists
almost
en¬
tirely of high grade bonds and
mortgages.
Common
stocks
at
carrying values of $2V2 million
were

^

1955

Opef. Rev.- $3,208,000 $5,589,000 $4,740,000

the

written

is

,f

1956

recently

basis

•

.

r

'

with most growth

case

yield

business

the

relatively

in life stock

CAROLINA

expense

expenses
are

comparison.

VIRGINIA—WEST VIRGINIA

benefit

insurance business in
securing new
business is incurred in the first
newal

Specialists in

the

'shareholders, with the remainder
belonging to the policyholders.

year




highly significant

officeh

Securities Co., Ltd.

pan y with
i n t eresting

use.

the

This is

branch

information

current

;

little-

known

lion was in the highly profitable
category of ordinary insurance. It
is interesting to note that $1 of

understating current earnings.
The company's portfolio, as

participating department belomg
to them, whereas only 5% of the
participating department's earn¬

Donnelley

RICHMOND, VIRGINIA
System Teletype: RH 83 A
Telephone 3-9137

life

industry during this period. Par¬
ticipating insurance in force dur¬

from

Bell

Canadian

the

our

small

a

million.

Lanolin Pius

NORTH snd SOUTH

whole

about

For

companies, Great.-.
Rico
Tele¬
capitalization
phone Co. was
consisting of only 100,000 common
incorporated
1. Henner
shares. Therefore, the total pres¬
in 1914, suc¬
ent
market
value
of
$27
mil¬
ceeding sev¬
lion
seems
quite small in com¬ eral
smaller
companies and
is
parison with 1955 year-end total presently serving a population of
assets of $556
million and non- over 2,000,000. The company has
participating insurance in force of a long waiting list of unfilled
$1,186 million of which $550 mil¬ orders for telephone service.
In
has

ing the
same
period grew only
53%, from $837 million to $1,279

F. H. McGraw

Since 1932

the

is

to

insurance

continued growth of the business.
mil¬
.*
Great-West's accounting policies

lion at the end of 1955
being close
to three times the
figure of $422

pub¬

utility

a

with other Canadian

increased $3 dividend is nominal,
but the large plowback of earn¬

insurance

A

possibilities.

equities,

non-partici¬

ESTABLISHED

is

18

Expansion of Great-West's nonparticipating department has been
quite vigorous, non-participating

pating

*

common

life

the

to

million at the end of 1949. GreatWest's growth in its

R. R.

this

NY 1-1557

improved Japanese

company is
the subject of
this article. It

shareholders' eventual benefit.

Scott, Horner &
Mason, Inc.

^

in

to

has
the

and

:

stationary levels for three years
now appear to be
stirring due;

some¬

company

in Canada
country.

;

STOCKS

re¬

what.

^

Company

Tele. LY 62

shareholders

This leads in effect to
the retention of nearly all taxable

'

Southeastern

only be

can

amount.

Alabama-Tennessee Natural
Gas

ac¬

non-participating .account to the
shareholders account, thus limit¬
ing the tax liability to a modest

Products, Inc.

of-Virginia

life

contingent

n6n-participating

or

Dividends

count and

Bank

are

company's management chooses to

mil

4

Canadian

on

earnings

count, which transfer can be de¬
layed
until whatever
time
the

BROADWAY, NEW YORK 8

Air Control

In

West

Income taxes

participating

Members

American

improve¬

; since they need be paid only when
.funds
are; transferred "from
the

IfcpONNELL &PO.
New

earnings

treating

writes insurance in

company

provinces

even

lic

company's

states

dramatic 58% and

up a

or

in the U. S.

all

;

La. - Birmingham, Ala.

after remaining

*

"

the

the

Exchange
Exchange

JAPANESE

cover special situations and
many
"growth" stocks are marking time

$15

was

The

Sales for the first

ment over 1955.

company

:

per

taxes

HAnover 2-0700

New Orleans,

With security prices near alltime higha, it is difficult to dis¬

of

of

Stock

Stock

Telephone Co.

to

in

York

Mobile, Ala.

35%

to

insurance

43%

American

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

New York-p';

^

Porto Rico

for 50 years and, at the end

1955,

New

Members

Direct wires

close

of

The

Members

-.

HENNER

Its 1954 vol¬

insurance in force

results for all of 1956 should show

Since 1917 ;

1X0

U. S.

Brandt

total.

writing

Steiner, Rouse & Co.

Certified Public Accountant

1955

is the third

line

Louisiana Securities

New York City (Page 2)

visor,

I.

period
insurance
sales

close

was

national

umes

and actual

Specialists in

this

million

taxes

come

in

ume

of

fshare after all
contingent in-"
Kill

like

and health business.

per

,

Com¬

Porto Rico Telephone Company-L.
; > J. Henner, CPA, New York
City.

were

,

270 is capitali z i n g
1955

$26.48

Selections

months

million

largest
life insurance company in Canada,
and by a wide margin the leading
writer of the fast growing accident

of

earnings

the

Great-West

price of Great-

<

six

$271

ordinary
rising 62%, group insurance sales
37%,
and
accident
and
health
premiums 16%.

companies, the

Exchange

above

first

of

with

the*

life

surance
Established. 1920

the

sales

58%

is

leading Cana¬
dian

In

total

ifer*

p

.'r'A

Alabama &

pany—Henry Brandt, Financial
/iu

allocated to shareholders.

are

Week's

Great-West Life Assurance

nor

sell the securities discussed.)

to

Their

■'''

Thursday, September 27,1956

Participants and

adjustment to
total
1955'
(Page 2);7V'^-;'/. ;v
earnings per share after all con-;
tingent income taxes of $26.48
was $6.77.
Judging by first half results, the patient investor desirous of
1956
should
be
another banner profiting in the dynamic growth
of
the
Canadian
life
year with new highs anticipated in
insurance
sales, earnings, and insurance in' industry.
?

in-

dustry. Al-

be,

to

This

City

benefiting from the twin
of Canada and the life

growth

REQUEST

particular security.

a

intended

not

are

ings

Great-West Life* Assurance
Company is a dynamic company
that

ON

offer

Great-West Life Assurance Company

NET Prices

TABLE OF RELATED

as an

BRANDT

HENRY

I

Financial Advisor

Rights (w.L)

Sold

—

at

they to be regarded,

are

-T

o.

for favoring

reasons

(The articles contained in this forum

:

Common &

This

Forum

...

per

In

share, the

my

opinion

reasonable

in

REQUEST

National Quotation Bureau
46 Front Street

New Yert 4, N.Y.

„

Volume 184

Number 5572... The Corhmercial and Financial Chronicle

(1283)

I N I* E X

Canada's Mineral Producing
,V ?„

,

Articles and News

CLAUDE

By

TAYLOR

up-to-date

of the Canadian mineral and

panorama

record amount of U. S. and

consumption records; (4)
era-ior natural

f

gas

pipelines

in Canada; (5)

gas

____

opening

are

;

>

^

—A.

f

.

•

,•

Wilfred

j

T. Loeffieri

.

—

mineral

Canada's

producing and developing industry is experiencing its greatest
year of growing pains whether it

—H.
/

in metals

be

Luedicke—

E.

——

fast-expanding Canadian mining.
probably be credited

Middle

East, with bulk
of the imports- coming into the
large Montreal refining market.

ta nationalization policies
the

Undoubtedly

seas.

across

Canada's

$2 billion annual producing min¬
erals industry is headed for

new

heights.
/

|

New Oil Industry Records

The oil industry — the junior

member

mineral

,

Canada's

of

team—is

in

be

around

Oil

day.

million

1.3

now

bbls.

xx■■ ^^

west,

^;xx .■

Longest

"Big Inch"

Oil

Line

Vancouver, B. C. a
some 700 miles, with

the

within strict conservation limita¬

bbls.

ments.

But because

considerations

per -

require¬

day

675,000

of economic

by

dictated

geog-

raphy domestic producers are only
serving some 55 to 58%

,

15
•

•

(X MINING

*

■.

.

runs

- -

.

17

CANADIAN PROGRESS AND PROSPERITY
Article

starting ^

Prosperity'*

„;;

Canadian
•

the

on

the;'cover

on

discusses

securities

:sented*X includes

a'

Canadian

the

and,

>

"Canadian

J.F.Reilly&Co., Inc.

and

Progress

by

to

which

128 years

DI(by 4-4970

have

(Table I)

paid

and from 5

10

to

I

years

Oil

of

out

'

i

Bank

.

Mountain

rent

per

now

Pipe¬

view of company

Stocks

18
39

Bookshelf

Man's

Investment

T

14

[Recommendations

8

Einzig: "Futility of Economic Sanctions".

&

18

—

From Washington Ahead of the News—Carlisle Bargeron

be

46

—

page

Teletype NY 1-1825 & 1-4844

14

Direct Wires to

16

Philadelphia * Chicago * Los Angeles

News About Banks and Bankers

Observations—A. Wilfred

Reporter's

Our

in :

The

17 [

fastest
to

—

Registration

..

.

Security I Like Best

The

5

Started'in 1953 with $500 and

4.

Twice

Weekly

rX-*.";; f

Drapers'

1

Gardens,

London,

E.

C.

Eng¬

•

HERBERT D.

TELETYPE N. Y. 1-5

Nashville
4, f

•

(




•

Chicago

Schenectady

•

•

Glens Falls

as

'

•

second-class matter

DANA

COMPANY,

Publishers

:

Febru¬

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

New York 7, N. Y.

Subscription

SEIBERT, Editor & Publisher
DANA

SEIBERT,

Possessions,

Union,

Canada,

Other

Thursday, Sept. 27, 1956

'

-

of

Countries,

$60.00

$67.00

per

$63.00
per

Thursday

(general

news

and

state

and

city

news,

etc.).

year;

per

of

Offices:

Chicago /3,

111.

135

South

.

La

Salle

St.,

(Telephone STate 2-0613);

from
any¬

account

of

the fluctuations

In

remittances for for¬
eign subscriptions e"d adwusements must
be

made

in

New

of

overseas

con¬

addition
increase

of

15

trailer

revenues

to

vessels

over

$30

annually.

Send■ for
of

TMT

.

6-page• description

covering history,

Publications

and

Note—On

the doors

It is estimated that the pro¬

operation and future*

Quotation Record — Monthly,
$40.00 per year. (Foreign postage extra.)
Bank

to

posed
could

in

year.

year.

the rate of exchange,

Worcester
Other

Other

ad¬

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

of

S.

4
vertising

trailer

signees.

million

•

Dominion

President

Rates'

in
United States, U.
Territories and Members

Subscriptions
Pan-American

WILLIAM

ST., NEW YORK 4, N. Y.

Boston

Company
Reentered

REctor 2-9570 to 9576

Every

Albany

CHRONICLE
ary

B.

Park Place,

cargn

shippers

frozen

and carries it in same

where in U. S.

Reg. U. S. Patent Office

;

and

platforms

'Copyright 1956 by William B. Dana

Stock Exchange

TELEPHONE HAnover 24300

TMT's "Fishy-Back" picks

general

loading

COMMERCIAL and

FINANCIAL
/

up

bor¬

a

trailer, assets" today total over

rowed

$9,000,000.

'r .X,

BROAD

attention:

Common Stock Around $4.50

60

You—

22

25

25

our

FERRY, Inc.

2

State of Trade and Industry

WILLIAM

Members New York

to

TMT TRAILER

16

—*

—

-

Spencer Trask & Co,

come

53

and You—By Wallace Streete.-

The

Washington; and

and

growing enterprise

40

Salesman's Corner

The Market

mostdynamic

48

"t; Prospective Security Offerings———
Security

,

—

Securities

Railroad

Securities Now in
,

59

57

Report

Securities.—

Utility

Public

41

Governments.

Our Reporter on

The

specialized in

•

*

May

land, c/o Edwards & Smith.

PREFERRED STOCKS

Exchange PI., N.Y.

56

Funds

*See article on page
on

40

'

plans to increase

Continued

MACRIE, inc.

HA 2-0270

s

pipeline

boosted

10

Indications of Current Business Activity
Mutual

operating at cur¬

soon

Cover V

NSTA Notes

day* Current rate in all prob¬
will

Insurance

and

TMT TRAILER FERRY

(Editorial)

Dealer-Broker

capacity of some 150,000 bbls.

ability

-4

DEVELOPMENT

''

f

"

SHAWANO-

,

system moved an average 109,486
bbls. per day during the first half
of 1956 (73,779 in the same period
of
1955).
But Trans Mountain

pipeline is

;

»4jb- —»1v

jr

—,,,.43

'Vt'.

Comings Events in the Investment Field___________

from Edmonton,

Trans

See It

Business

its pipeline system during
six months of 1956 (36,-

The

ZAPATA OFF SHORE
..f -

36

Regular Features*

051,000 in same period last year).
.

Canada to Over'

"With Less h."*ort" (Boxed)—

As We

of 1957 to .Toronto.

Mountain

Teletype NY 1-4643

cash

consecutive

7

Published

have

Broadway, New York 4

documenting the views pre-

of

way

42

tabulation of thei bariks and companies listed

Exchanges

10

page

investment- opportunities r inherent?'- in;.

Billion

$10

the first

of Can-

For many years we

CATARACT

'

Emerson W. Axe Sees 1929-Style Crash Unlikely

livered 47.2 million bbls. of crude

the oil index
on our exchanges has been carried
to the highest level in history.
scene,

tions—virtually all of its 650,000-

/

•

capacity of both these pipe¬
lines, is being progressively in¬
creased by addition of new pump¬
ing stations and/or looped lines.
The Inter-provincial pipeline de¬

the Suez Canal seizure has swung

oil hungry nation pro¬

•

Brewster Jennings.

Declining Oil Stocks and Temptation of Uranium
—Roger W. Babson

X

The

Alberta and British Colum¬
bia, has electrified the market¬
place.
Coming at a time when

an

Trans

URANIUM

LANOLIN PLUS

Alta., to ■
distance of
a short spur
extending to Anacortes, Wash. ./££

wan,

♦From

summer

The

Saskatche¬

ducing around 10% of its own re¬
quirements in 1947, Canada has
now
progressed to the position
where
she
could
supply — and

■SXX
14r

Poorer World Can Be Achieved With

a

Teamwork—B.

v

SABRE-PINON

Humphrey 13;

Alternative Plans

U. S. Investors Double Their Investments in

Sarnia, Ont.,
a
distance of
1,770 miles. This will be extended

in the

»

URANIUM

(Table II), along with other data of interest to investors.

Pipe Lines, the
longest "big inch" oil line in the
world, extends from -Edmonton

line

to

A Richer Life in

Interprovineial

day.
i
Recently a series of what looks
like important new fields in the

than; ever

.

,

estab¬

STANDARD

12

Machine Tool Purchasing Costs Financed by
/—R. M. Soldofsky

'

most every

oil

[XX-;

Nationalization—T. S. Petersen)
Free World Must Curb Inflation—Hon. George M.

dividends from

r; "r:

progressively greater heights al¬

interest

Baker__——;9;.

Violating International Contracts in the Name of

per

to

more

DEVELOPMENT

11

are

major "big inch" oil pipe^
starting points at Ed¬
monton, Alta., in the heart of the
oil industry, move east and west
to tap the big oil markets in east¬
ern Canada and the Pacific North-*

,

Canadian

SHAWANO*

.

with

lishing new records in every di¬
vision* i from
exploration
right
through; to sales of crude and re¬
fined production.
Extensions of
known- fieldsr and discovery of
ziew ones are pushing the stature
of this accelerating
industry to

westernmost provinces,

'

?

.Two

lines

.

'•*

4-6551

10X

placed
conservatively at 3 billion bbls.
reserves

producing

itself

„

■£[

Billion Dollar Bus Industry in the Unlimited Road" Ahead
—Arthur S. Genet.

,

An assist can

6

7

____—

Metalworkihgoutlookfor .1956^60—Irwiil H.

or oils or gas, from
earnings standpoint or from
the cost-consuming angle of mill
building* diamond drilling or just I Canada's Oil Exports to U. S. A";
At the same time Canada's bit*
Straight financing oi drill holes or.
exports to the United States are*
pil wells.
x
VjVlore funds are-channeling into increasing — actually "running
around 110,000 bbls. per
day durdevelopment and exploitation of
bur Natural Resources at the ing August (some 66,030 bbls. per
moment than at any time since day going to two U. S. Washing¬
Canada started experiencing the ton State refineries; 12,000-15,0.0
bbls. per day going to California
problems of a Worldly Nation.
via tanker out of Vancouver).
^ i
Record
amounts of American
Looking ahead, the vast needs*
iand European capital are partici¬
for energy wjll bring a farther
pating'' in the + giant task of fi¬
and continuous surge of growth
nancing the large numbers of new
for the petroleum industry.
By
projects
underway
across
the
the year 1960 it is conservatively •
country and more and more top¬
estimated the production rate will
flight mining corporations from
At
across
the border, from Britain reach 605,000 bbls. per day;
and South Africa have moved into the same time productability will !
an

WALL STREET/ NEW YORK

Telephone: WHitehall

■

requirements.
The ^re¬
mainder is imported from Venezuela, The United States Gulf Coast
the

'■

6

Financial Fruits of Leisure—Ira U. Cobleigh—

ada's

and

l; Obsolete Securities Dept.

99

5X

Bright Construction Outlook—Melvin H;

-TORONTO

:

*

May______

Sales Outlook for Chemicals—A

us!

to

.4 r"

Ramification of* Inflation in Business Trends and Outlook" *+

•

of lithium deposits.

Sell their obsoletes

\

r
.—

Economy—Edmour- A., R. Germain—

>

.

as
booming uranium; x (6) nickel is reassessing- old • %
showings and started^ prospecting in many areas with an assist " .<"• 7.
by Washington's - recent premium price announcement; (7) >
marked increase in iron^ore-production; ,and' (8). development/

.

;

3

Canadian Investment Penetration of the United 'States

active

X

MEN OF
DISTINCTION

The Current Operations in Sound International* Finance
"

•

as; t

are

W rV

_

Board. Obtatn desired Economic
Results?—Marcus Nadler
;

f

up.a.new

developers

copper

^

Cover

___

Can the Federal Reserve
.

oil production bank, and

new

._

Canada's Mineral Producing Industry Forging Ahead ri;
v
--Claude Taylor

,

.

European capital flow is assisted

by nationalization abroad; (3)

4—George W. Mitchell—

pro- v

ducing industry is provided by Mr. Taylor who. cites names,
location, facts and data in reporting: (1) $2 billion annual
producing mineral industry is headed for new. heights; (2)
\

Cobleigh———_Cover

Impact of Liquidity Squeeze on the Business Outlook—r
-

*

Page

^

Canadian Progress and Prosperity—Ira U.

An

3

York

funds.

General Investing Corp.
Members

American Stock Exchange

80 Wall St., New

York 5 • B0 9-1600

X1*

4

\The Commercial and Financial Chronicle

(1284)

Thursday, September 27.J956

...

%.

'

*

in

Can the Federal Reserve Board
■/.- v//

function

School of Business
Administration, New York University

Professor of Finance, Graduate

(1)

Well known bank economist maintains:

those

of

qualitative
applicability of Federal Reserve statutory powers in view of
changed conditions since last passage of banking acts; (2)
fine professors who

are

should

open

Operations in
International Finance
By A. WILFRED MAY

in

banks

central bank

a

maintain

to

was

Reporting on tenth anniversary meeting of Bretton Woods
Organizations, Mr. May notes strong emphasis on anti-inflation
attitudes and generally sound economic aims. After
noting
Export-Import Bank's contrasting policies and operations,

determined

were

The central banks

<

,

not under any obligation, to
close attention to business ac-'
tivity
or
to
employment
The

lauds International Bank's continuing use of
prudence, hard- X
headed business standards, and strong resistance to severe and

V
'

•

mounting political pressures. Outlines similar problems and X*
countries were
decisions facing new international. Finance
public debts of all
Corporation. *
the countries, with the exception *
WASHINGTON—The outstand- management
of France, were relatively small.
which
reveals
the
The problems, therefore, that con¬ ing impression gained at this, the sensational success of its
long-time
fronted a central bank were in¬ tenth anniversary of their birth devotion,, to
courageous
soundfinitesimal and the most impor- , following Bretton Woods, is that banking
rather than "aid-ing."
tant power at their disposal was
the
world's During the fiscal
year 1956, it exh o p e
the discount rate.
*,
for panded its lending to $396 million
international- and
receipts of $29 million, its
Open market operations in those
financing on a loan commitments to a grand total
days were practically unknown.
budgets

of

balanced.

Employment Act of 1946 imposes functions upon the
(4) there's practically no change in lengthening the

Administration; (5) bills-only

central

anient

pay

Board;

debt under present

,4*TS>

were

gold standard's efficacy under today's dynamic circumstances;
(3)

the

of

days

nothing else.-

slavish belief in

cease

of

outbreak

ideas

the

by the movement of gold' and by

ing professors should reexamine quantitative and

there

the

I,,

the
gold standard. -The credit policies-

and bank¬

money

War

of the
mid-19th century were still prev-r
alent. The world at large was on
the gold standard. The most imr
portant countries adhered to the
gold
standard.
The
principal

Desired Economic Results?
By DR. MARCUS NADLER*

before

1913,

World

market

policy is mistaken; and (6) cost of money is not as important
as
before.
In requesting universities to study whether the
Board has adequate powers to achieve desired results of sound

most

The

:

-

.

and growing economy,

Dr. Nadler shows, despite active credit
restraint, marked increases took place in: bank loan volume,
consumer
loans; capital financing, commodity prices, and
J ■;
inventory levels.
^

Raising

lowering

or

the

requirements weren't i

sound

•

reserve

hi t

n y e

e

cj

and

of $2,720

million lent in 42

constructive (ries, and its

;

reserves to

coun-

-

-

$228 mil-?

r

it has made 150

•/

1

•

.

The

Increases Despite

followed

of

Governors

Board

the

by

Federal

the

J

Re¬

lion
a

for

now

year.

for

try

was

ra.ti

e

n

op-

gat

capacity-and
therefore
the
,

Boardfelt

in

crease

such policy of
active restrains Indus-

during

reach

the

And

these

under

ideas

predominated

at

the

the volume of loans has increased

eral

considerably in 1955 as well
1956, and the reason why
deposits did not increase is simply

the

Since

amendments

very

Act

Reserve

~

of

passage

were

o

Ron. In 10

billion, without

li g?inizations,

*

and

there

is

no use

Nadler

Marcus

s

j

increase

tn

n

m

.

A. Wilfred

major
made, in 1933
two

cials

May

size

and the abstinence from

offi-

Fund

Fed-

h

v

insisted

here

lead onlv -to an increase in prices,
lead only to an
y
More recently the policy was acporations from utilizing the facilities of

the banks instead of

been

in

operation

it

year,

is

to fin-

quire, how successful is it?
number

^

That

one.

f
..

...

Question number two

the

is, can

Federal Reserve System, with the

really .operate

Stock

Forum

total^gume

publicly
Vate

of

offered

well

as

ori-

as

placements, in the first, half

1956

higher

was

in

ago

snifp

of

tho

than
fart

a

banks Put

" '

'

'

.for

increase,

the

in

'/ *

'

Department

'

^ 1 f

Of

i

Demonstration of Sound Banking

:

Brazil constitutes

.

ample of

.

.

the

.•

striking

a

Bank's

•

ox4-:

sound' and

decline

a

in

to

all

these

use

Commerce,

P^dent policy. Since 1953, in the >
absence of satisfactory restoration

-

0f its economic

:

house-to-order

as

judged by the Bank, the institution has steadfastly refused to

so

for

Mexico, who acted as Chairman at the Opening Joint
Session,
vigorously stressed the importance^
of higher production and
producT
tivity, and of greater freedom in

accede

to

under

not

programs
of foreign aid.
Citing f the progress toward exchange convertibility and multi-

gency

further

loan

continuing

a

without

impasse

considerable

be

and

time

at that

d

reserves

in order

their

I

know

thati .when

the

again for the Federal

comes

Reserve

is in the

they will

liquidity. They
large buyers of bills, and

you

building field, and there, I
believe,-it was more due to the

States

policy
0f

lateral

trad,e* ,)fhe Tc-emphasized
healthy principle that "the
financing of public
investment

and

with its

own

resources."

as

well

as

foreign

to the interests

importers and exporters, has
through ih a big wky in fillthe
lending void. Coupled

come

-

ing

the

•

with the Eisenhower Administra-

tion's giving of its backing to the
Kubitschek

;

to tighten credit and if,
time, the banks have am-

" dl V™*'

nuaLReport here, devoted priinary
attention

r

production,

and

ment in world

from

to. the improve-

payments resulting
policies.

anti-inflation

The

has

top of $50 million credits author- j

t0X'the* ^jmpGrtance/^ed5eiartierviin the year)/The; Ex^^

new

anti-inflation

liberally spilled

over

spirit

into the

U. S. attitude. Treasury Secretary

Humphrey,

who

last

spring

port-Import
agreed

to

officially - f u r t h e r :
consider f additional
development
loans; -

long-term
supply
medium-term

credits

to

ulative

stocks

is-a

able information

Mining

spec¬

of

reli¬

source

Canada's Vast

011

had /equipment; and suspend loan

re-

ad^f®Yed, w|lh .the wisdom of the payment in case of a shortage of
Ple 1 quid ty at .their disposal
Martin de-flationary Reserve poldollar earnings
fact;'that, the...home-financing namely a large amount ot Treasicy, here this week voiced the '
/
agencies insisted on some dowSFybills-they wall be practically need for assuming the responsibilThe Contrast With Ex-Imp
payment on mortgages. The vetP
the. Federal. Re- ity, in a trusteeship Tole, of guardOperations.
/;
eran
was " used
to
receiving a~sei3f'
ing
against
inflation,
and
for ;
This substitution of Export-Imbonus when he signed the con-Tbe Bank of England found it maintaining the value of money
•

Mining Developments and
Market Information.
nead
Read

the

most up

of

yuehec
Quebec

*

t

for

to date infermauon

Canada's Mining

buying a house, and
now, instead of receiving a bonus,
he actually has to make a down

current

?

Miner

.

the

on

activities

upon

P*

aU

We

cov-

-

the housp

on

.

few

a

years

ago

uu^ a/iew, yeai s

?rd®r to J?

ag"

worked

in

and

fectlv®» tbe government had to

achieve

(24th Year of Publication)

the

the question

at the

way,
did
desired results,

not
afid

arises, why? >

because
because lar.e liouiditv
large liquidity
disposal of the banks inter¬

feres

with

the

-effectiveness

Banks Functions

-

Contractual Savings and Insurance

The Quebec Miner
Suite 104, 455 Craig St.

serve

26 issues $5.00—52 issues $8.00
me

I

the

Quebec

enclose

my

Miner

cheque

for

\

^

*

'V

are

S.

Federal

Re¬

the

I

am

the

same

central

quite

familiar

as

sure

with

were

banks

the

all

of

of

great

Monetary Commission, and
have studied through those

on request

years, you will have found how
the people in the United States
culled

2-Week Trial Offer

Free

the

volumes in your graduate student

City & State;

□

you

if you

were

in

Europe.

for $5.00-

U.

Address

Act

found

$8.00.

Name..

study

you

serve
Act you will find that the
ideas embodied in the Federal Re-

W.

Montreal, Que., Canada

issues.

If

to

new

through all the activities of
a

France,

in

'order

to

adopt

those

was

established

in

1913, and

as

the

indispensable

port funds in Brazil, highlighting y
for- the World Bank's prudence, is in <

element

nation's economic progress.

J

Of course, such change of heart
well as affirmative emphasis

toward

soundness, to some extent
reflects
the world public's slow
veering away from intervention -

ism and
A

management.

.

Real Banking

Operation

line with the over-all comparative
record.

In
the
ten-year period Ex-Imp loaned a total of $1,642,464,865 to "less-developed" :
South America, partly in "bailing- •
0ut" operations, against
only .
-

1947-56

$653,360,326
Bank;

by

and

to

the International '
Asia $870,279,000

Continued

But it is the International Bank

on

page

the

some

role

~:

other phases.
the insur-

that
,

ce c?mPanies are playing today,

the

only

open

writers
ments

as

market, but as
through
private

of

WISENER

buyers of securities in

loans.

The

under¬

loot fc'r'example, at the
p^/hi thrnltu^o^ta^nl"
savings of the nation
on

COMPANY

insurance

Let us

Continued

and

LIMITED

place¬
73

companies have assets of nearly
$90 billion and they are increas¬
ing at the rate of $6 billion an¬
nually, and this $6 billion prob¬
ably before long will become $7
billion and $8 billion.

The
Act

at

•

not

Relchslank Vl!?"! °n\ "o? X

subscribers.




Let's look at
Look
/

'
today

page

>

.

'

Firms

Send

of

credit control by the central bank.

WEEKLY

'}

as
a

carry

that

a

'Changed Central

„

w£en \n

credlt

e

:

;

...

-tandin,
standing

it

,

ISSUED

out

through a refunding operaattractive as it' was hPforp:': 1:1011'-:to^reduce; the
amount of
find therefo?e thlt the nol
-short-term Treasur.Y bills out-

oavment

ering Copper, Uranium, Base Met¬
als, Oil, and Gold.

J

,

b

stract

'

elp^

h
finance private Brazilian ;
purchases of American Industrial *„•

•

Investors of Canadian

-

resent-

,

United

to

-

-

requests, V

to the furtherance of U. S.

arJ mH?t .be made by each country

ana in- tne fu-

likelihood,

excess

increase

will

home

available

i

1

.

ture,

The

showed

j

when ^the ..banks will .have

exc^sr€serves>

com-

alg0 continued to rise.-

which

Now

-

,*-'y

• -r

government, as a good :
b^ But just as sure
Similarly/ the Fund's outgoing friend and valuable ally, in late : :
as anything can be, the time will Managing Director,-Ivar Rooth,-in
July/Ex-Imp gave Brazil $151,-":
come a§ain when money will be his statement presenting the^Anr 400,000 of development credits (on ri

modity prices. And finally the volume of inventories, as reported by
the

particu-

banks,

larSe banks that don't

some verY

th^

only important segment of
industry, outside of automobiles,

.

/

wflor® bills than all the New York

year

that

the

because

5?an^

R^aint.

/

Mining News from Canada

C*,

}

the large banks' have no
imm. 1 can tell you that one
l/rge American corporation has

'

FOR INVESTORS

'

larly

tqtal volume

Pv

.

by Dr. Nadler before the
on
Finance, AmerExchange, New York City,

Annual

ican

...

'

"

•

cor

tent

reason

address

»An.

Sixth

larue

some

present/*/Four/ commodity prices consuccessfully,, andvifviinued. to increase; -You know the ^ Jasy»

"not, what should be done?
/ '

•'

*****

aiihonBh

at its disposal at

powers

:•

r

Two, in this connection we have
^Thre^al'though s(>me la.to rajse this question:.right now international trade and flow of ment. Contrastingly, the Exportimport
Bank,
whose
purposes 1
Cfr' Xrinc nrdcnritii S the policy of the Federal Reserve
their; ottering of .securities, most has been effective to some ex- investment; in lieu of mere emer- differ in being frankly committed •
Th

say-

for, oven-a

lof importance

is question

become a very important factor inf

spite

tnisj*policy* has,

Now, since

ings.

in

by its long-time Presi-

on

dent, Eugene: Black,

in

of the efforts t0 curb loans of that our economy-

e

inorease^n'm^ce^

'

loans,

political

domination of its lending policies, X

empha-

anew

,

consumer

quanr.

titative. record of complete freef ;
dom from default as well as by its
0 the Interna- qualitative practices, is the un- '
i tionai Bahk.
ceasing devotion to sound Ijankirig 5;

1

v Two

-

'

,:-•••.

*

Mone-

rM1

permitting

an

totaling $2%
single bad debt.

tary Fund and

-

of

a

Reflected in the excellent

'Interna-

tional

t

that it as well as the Bank is
1935, and, as you know
carrying-the-ball
for
soundness
from the great credit inquiries,
in their own policies and operabecause the banks sold
governthat were held at that time, the
tions,: and in the member nations
merit. A securities
and
thereby most' important
thing
inthe[
being serviced
■
brought about a reduction in the minds of the Congress was to pre-;
volume of deposits, but the fact vent another major
depression.
\
Productivity Stressed
'
Remains that the volume of loans
®
.v ^
Look at the situation today. The
■
Thus, Antonio .Carillo Flores,
continued to
increase.////';-X public debt is tremendous and has. Governor of the Fund and Bank
jn

as

years

loans to 42 countries

t w i n

e

'the

time

the

•

11 e s

a s 1 s

:

when the Federal. Reserve-Act
was passed.
r

* h

>

.

but

uniquely with

....

.

was

supply,

money

of.

circumstances to be a central
banker was a very easy job. These

the last
conclu-

the

capable and achieved the ultimate
objective of" preventing an ' in-

the

reason

place
will

you

sion that the Federal Reserve

And

.

know

we

taken

year,1

heard

been

b

>

t

agement of the public debt hadn't

v

study the record of what

you

has

System has been in opera-

serve

If

Tightening

v
'•

-Consumer credit played no
important role whatsoever. Man¬
yet.

..

policy of the active credit

restraint
of

,

44

King Street West

•

Toronto 1, Canada

Members of The Investment Dealers' Association of Canada

Affiliated

Reports available
•

Interprovincial

Pipe

Line

25

Company
Canadian
Westcoast

Delhi

Petroleum

Transmission

with

MACKELLAR,

Ltd.

Co.

Melinda

WISENER

St.,

Members

Toronto

Stock

LTD.

Toronto
of

;

„

,

,

Exchange

„

^

59

Volume 184

.H-

Chronicle V

The Commercial and Financial

Number 5572

'

•

«,

-

v-K:

would

Canadian: Investment Penetration
y-' Steel Production
Electric Output

«?,, A
' *•

.ft-

-

vr

-

":*£*1

State of Trade

Trade

'

Commodity Price Index
Food

and

Of the United States Economy

v'«f -i Carloadings
Retail

Price

*

A Business Failures

:

ri

:

.

;

l

•.

Index

*

-V

Vr Auto Production

Industry

'

~

•

—

By EDMOUR A. R. GERMAIN
*
«

-

^

' "{;

-

'

♦

.

.:

"t

t

.-

' ?

,•

*.*•

s

*

*

<

%

Continued

U. S. A. and the rest

ment in

A

international finance importance.

A noticeable increase occurred in over-all industrial produc¬

tion in the period ended on

motive,

coal

and

electric

Production continued
a

year

ago.

Canadian

Wednesday of last week as the auto¬
industries steppedup output.

Unemployment:; tiairns; in- the latest week rose 18% and exthose of a year ago by nearly 27%.
The increase was
attributed to shutdowns and scattered labor disputes in the apparel

ceeded

;;J» and automotive industries, V

;h

- - •;

' ;

x

V;xX;;

The Bureau observed that the number of auto workers laid

4

15—a

Canadian

V.

billion,

off

since the first of the year and not recalled was 254,000 up to Sept..

„

H

75
■

recalls

in

the

TiiajOr auto

seven

(6) 1955 earnings by Canadians on their
totaled;$160 million, or 25% of total earnings

and

U, S. assets

State reports showed ; '
producing States totaled 33,000

drop ©f 18,000 from the previous week:

-by all foreigners

.

charge

I

their U. S. assets that.year;

on

•

/

•

north

;

jobs, or left the labor
Insured unemployment,

'

of

the

GAS
NVEST-

oil

of

the

experts,

and

■

investors

to

now

•.

•Xv.y.;.:

capital

unusual

seek

who

wihi

Durand.
Their
of urgent im¬

are

portance

■

K

J.

Tax Mnsltute

,L.

growth and high income from
relatively small investment
well

—as

of

Now

not

need

be

fi

T

BRI

an

Wr

7

the

in

share

to

'

I<1

nature

unique

you

"insider"

r

advantages

tax

as

truly

a

Wxi.

MENTS

investments has just'
completed by two inde-

findings

returns (as high as
50% ) yielded by oil and gas.
As the first
complete and unbiased guide to this rich
area
of
investment, HOW «TO--GET TAX
PROTECTED INCOME FROM OIL & GAS

generous

.

.

field

rich

K'r»nris

-

,

OIL &

project

research

costly
"the

pendent

share

to

forced

A

Lasser

every downturn
market.
XJ, S. border
of America's somewhat more voL
the Bureau reported, increased 79,300
tends to hide
atile economy.' Canadians like
to 1,073,500 during the week ended Sept. 8. The increase from, the
the
great
life to move on an even keel over
previous week's 1956 low, the agency said, was attributed chiefly amount of dia. stable course.
They don't want
to the rescheduling of claimant reporting because of Labor Day
rect
invest¬
to
be the tail of the American
and temporary layoffs during the week ended Sept. 8 in New York
ments which
economic kite.
Other than that,
and New Jersey apparel plants.
Canadian
too,
in
charting their national
Insured unemployment for the similar week in September,
c o m p a n i es
destiny, they don't want to be
1955, was 922.000.
'
'
:
t hemse lve s
shoved around or aside by Amer¬
Initial
unemployment claims went down 23.300 to 182,300
have made, in
ican enterprisers who may have
during the week ended Sept. 15, according to the Bureau of Emcomp le te 1 y
J entirely different ideas about the
ployment Security.
American en¬
% direction to be taken.
The total of claims from laid off workers who are covered by
To a greater extent than is genterprises
state and Federal unemployment insurance laws was the second
south of the
J erally realized, Canada is an im¬
lowest for any week this year.
The 1956 low was 174,900 in the
'&:■
'*>£>$■, %>:
''/vAA&fy..
border.
portant
manufacturing
country.;
week ended Sept. 1, but the total was still above initial claims
E.
A. R. Germain
Quietly and
Every fourth person working in
for the like week of September, 1955, when claims were 161,400.
without
fanCanada today is employed in the
Two states showing the largest declines accounted for more a
fare,
Canadian companies have' manufacturing industries.
Likethan the total drop, indicating some states showed a rise in initial . over the
years been establishing wise, one out of every three dolclaims. The states showing big drops were New York, 25,800 and
subsidiary companies in the U. S. lars of the nation's total income is
-

without
below.

receive

described

Lasser and Durand Show,

been

.

other,

Also

MEMO

*and gas

15,000.
«The cry heard in some quarters for a very large part of Canadian
^
The agency noted the figure of 254,000 is not a measure of •
»•*>•". * •*<
unemployment in the auto industry since it represents accumu¬ foL Canada today that: American employment.
Can a dia n s are apprehensive
lative weekly estimates by the industry and does not take into ' corporations are taking over just
too : much control, of: i n d u s t r y 0ver the likelihood
they; may;be
account that many cf the workers laid off since Jan. 1 have found
r

special

Generous Returns from

•

into

;

>;

profiting from these trail-

copies.

OIL & GAS

;r -

while layoffs for model changeovers were

•

^

blazing Manuals now—send for free ex¬
amination

alone, with aggregate assets of $4.6
50 U. S. subsidiaries operating

; companies

Start

FREE:

abroad than liabilities;

have v established

plants;

".rT" r--"

1

is $50 compared to

.

:>x

'

1

(1) vVx"

Mr. Germain reveals:

capita U. S. investment

per

faster asset growth

a

30

How to Increase

capita U. S. investment in Canada;

per

-had

moderately above that of the similar period
hh y:U'^...

by

page

"

(2) Canada has
(3) per
f. capita manufacturing output rise places Canada second only V /
to U. S.; (4) Conservatives are making a false election issue
? .of :U.
S. investments in Canada; >(5) ' sixteen important V
$30

:

power

*'t

on

Canada, in.order to indicate Canada's growing

investment in

j

! '"

*

the

just

'

,

of Canadian invest-'
of the world, and also U. S. •"

Writer breaks down the surprising extent

f'iVe

companies

invaded

have

markets,-,not

"

back¬

a

*

Canadian

Moreover,

H
*

? "

>

in

;

-

•American

'

!

remained

have
state.

ward

"themselves

^ ^

•*

5

(1285)

.; '

.

INVESTMENTS shows-you:
How

A)

oil

get

to

investments;

gas

and

opportunities develop and how to share
acquiring interests; jornt opera¬
tions;
development,
operation, and pay¬
how

in

them;

ment

etc.

investors,

to

v

.

reduce the risk; taxf plans
maximum net-after-tax re¬
turns; family tax plans; organizing oil and
gas
ventures;
assuring your retirement

.

taxes

How

B)

which

produce

oil,

through

etc.

•."**;

,.

-

_

New Jersey,

;

5

5,000.

»

'

"

,,

,

Living costs dropped 0.2% in August after rising consecutively
six month period. At the same time, factory workers' take-

for

obtaining

due

was

industrial

in

earned

Canadian

direct

in

this

not

country do

Canada's Nationalism

in-

To°

enterprises
have

the

0

—i-"

T_:;

~-i~v

lulled

motive

into

^a

amciii-a ndvu

-

false sense of security by the summer auto-

solicit

miny ing and smelting, taken together,
growinto
is aimost the same as the -Cana-

quarter steel supplies.
;
special "Iron Age survey of sheet users indicatesi
apprehension over availability in the coming months. Storm si„nals already are beginning to appear, even though the full impact
of automotive buying is still to come. The new model changeover

for fourth

.

A

.

manufacturing,

.

petroleum,

builders and 'the production
Canadians.
:
In
a
sense,
Canadians; themincreasingly fast pace in the weeks ahead.
selves have chosen to permit
There's no question about the market moving into a period
American
initiative
to
establish
of increasing tightness. It's just a matter of degree.
Strike losses
itself as strongly as it has in their
have forced the mills to cut allocations to customers accordingly
economy.
Canadians, if they had
and since consumption maintained a steady pace despite the
elected, could have financed all
automotive slowdown, the mill cutbacks mean reductions in con¬
but 6%
of their own economic
sumer inventories, this trade , weekly states.
development in recent years beThe term "gray market" is a swear word among most steel
cause, for at least half of the peusers and producers and the situation may not quite reach that
riod since World War II and for
stage before increased supply or reduced consumption reverses
the present trend. But the term is cropping up occasionally. One i;;'some years before
that, Canada
fabricator already has paid $360 a ton for carbon plate, some $240. * was a net exporter of capital.
a ton above the prevailing mill price, "The Iron Age" declares.
/ ,
•
.
,
period is just about over for most car

Canada—which
best

•

•;

being made, where possible. But
deals through to
completion. Since the mills brought melting and finishing capacifies -info belter balance, conversioa arrangements have not
Costly conversion deals are

it's hard to find the

.

: *:

■

*
■

-

rolling space to carry such

be really too

.;

manual

the

capital ga-in through a unique

otherwise

?

^ft°hVcouSTcouW wtumove '"lurelfhowev"^

$7.4 billion and its assets .abroad,.r,,.--.

%

Arc Your Records

Incomplete?

due them.

"FOR SALE"

t

,

end

•

\.

.

of

tion

>

.

last, year,

its

as

liabilities to other countries
had
grown
to $14.5 billion or
about double the 1939 figure; its
external assets had risen to $7 bil-

gross

:V;:;:

Beautifully Bound Set of

-•

"CHRONICLES" from

.

lion

1938-1950

or

been

four

in

times what they had

1939.

Currently, that is.

Canadians
is due them;

owed

What really bothers some

Cana-

for

Available in New York City—Write or

>

-:-

over

$2

abroad, $1

Edwin L. Beck

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

:

at

the

key industries, the economic nerve

centers,

of some

ing,

those

revolving
.

sence>

*

f' I

t
t

> M

f

Li

ttXiit i f

t «

around

Because,

considerations.

artitariff
es-

c

TT

J

done
...

.

as

it

were,'

responsible

miss

Don't

to

capital

have

out

save

and

a

elsewhere,

them

these

on

and

taxes

great

OFFER

free-examination copy of

today for a

either or both of

these money-making man¬

"Profit from them for two weeks,

uals.

your

$12.50

FREE EXAMINATION
Send

oppor¬

augment

You would spend weeks
small fortune to gather
hut you'll find them all

TREASURY.

Lasser's

in

YOUR

resources.

time

of

then

payment plus shipping charges,
copies without obl'gation (you

return the

or

they

what

and
,,

income,

nuities,
"

Funds,

FAMILY—Shifting
family trusts,., insurance and an¬
gifts, retirement, and your estate.

SHELTER

TAX

either remit

the issue of U. S.

ments in Canadia is a false one.
What Canadian investors mighl
have

guaranteed stocks, Canadian Mutual
oil and gas, uranium, real estate.

tunities

solu-

in

arrangements.
BUSINESS—Retain¬

expense

SHELTER YOUR

the best salary for an owner,
splitting income, expansion, converting in¬
come
to capital gain. etc.
.
TAX
SHELTER
YOUR
INVESTMENTS —
Stocks
and
bonds,
warrants
and rights,

-

..

free compound¬

ing earnings,

real problems such

ment

by

shipping costs
refund

save

can.

Business

to

Larrhmovt,

N"w

pay¬

Write

Dept.

CF-1,

Reports,

York.

sending

privilege).

now—same

today

•

^

done with their money are two
different things. The fact remains
that but for U. S. funds, a greal

would remain undeveloped a
industries

SPECIAL:
a

OIL

& GAS MEMO shows

returning average annual in¬
rf30.1%; a retirement program,
annuity, financed largely by

plan

come

like

an

oil
drillings;
plus
other
ideas.
A ccpy will be sent
FREE with either ef the above
Manuals—yours to keep even if you

tax-paid

startling
to

you

return

the Manuals.

Canada's manufacturing
f


V


"

.

...

pay
plans,
options and

stock

pensions,

moment, of course,
is that a very great part of the part of Canada's natural resources
American
capital flowing across
notably minerals and petroleum
the border has been going into the
J
dians

Phone REctor 2-9570

^

.

owed
%

the

At

,

of

finances:

your

preferred

warrants, tax

rela-

v, s.-Canadian

That is, for every $4 tionships and erect barriers,
abroad, $1 was ficial ones, to be sure, to the

$1.9 billion.
Canadians

in

'*■

r
»

.

No—-Just

SHELTER YOUR PAY—

Using

.

existing

of

areas

TAX

at

more.-

many

cases?

the ex¬
cellent income - and - capital
building
opportunities that
await you
in the four key
TAX

>

.

examples

typical

noweyer, even tne <-on

to

and

Isolated

*

,

get $7,000 extra

to

cost,

no

from the position of r debtor to
Purely,
'
Continued on" page 45
that of a creditor nation over the servatives - must reahze thaty to
a-next"' 25 years or so.
Prior to push the controversy too far could
World War II, its gross liabilities oniy- tend to destroy -the amity
amounted

insurance pur¬

chase

the Con-

even

have

the father

.

who timed an

seem

T7

r n,

company

would

yielded $9,600

serious in question-

flnnarentlv

,apP"6

the

.

.

that

contract

a

capital out of it, hoping
create an election issue which

thpv

.

that netted $16,000 bv selling

making
to

plan

pay

the

is

who converted $1,000

one

ordinary income into $80,000

to lack. The Liberal Government
Canada's Foreign Assets Growing indeed has very ably defended itr
" Canada's international financial policy of encouraging American

to'tottw-kcwmWe*

executive who tripled his pay
at no cost to his firm ... ;

,

important

an

in this extraordinary
the
stories of
the

Note

V

}ng the propriety of American investment in Canadian enterprises
.Actually, of course, it is primarily
the Conservative Party which is

*

K

'

of Tax-Saving Ideas

their

in'

only

not
but

customer

,

J K Lasser's

supplier to U. S. companies.
But certainly Canadians can not

•

•"'

from Four

•

have it,

lines will be setting an

ry

Tax-Sheltered Sources}
2 ' New Treasury Builds Income $ Assets T

despite the annoyance or
inconvenience
the
presence ' oi
such a minority interest might ocdjan share in those investments, casion. Nationalism abroad is nol
No suctl proportions of American to be ignored or flaunted, even ir
incjustry of course are held by Canada—or perhaps especially ir
-

$12.50

»

C

participation

nancial

int: snaxu

and

income

increase your
minimum risk.

to

how
at

0f U. S. investments in Canadian ventures if they do not already

changing and so is the outlook

letdown, but that picture is

L.(iii(iu<i.

ui

:

American companies with sub^
Canada .wov,J J
"
10

been

you >

capital

Growing,

,

.

wait any longer to share in the at¬
tractive
profits mary oil and gas invest¬
ments offer? Let Lasser end Durand show

terms of output per capita of its
manufacturing industries, Canada

other

and

vestments in corporate

decide

money-making strategy).

best

the

,

where it was

(with

Why

In

plants.

histories of oil and gas In¬

case

vestments
and
potential pay-offs
these to guide you, you can readily

^?fPn^
%! : n^AOCCU^f
ii%the
^^^ust^^elp^swelLtheir world second only to the U/S.
earnings from dividends paid out.
^
£

advanced to a new high. The decline in consumer price
chiefly to a 1.5% decrease in food costs. Carrying the

government's index to 116.8% of the 1947-49 average
still 2% higher than a year ago.

sub-

a

t^ir nLn

a

home pay

-

otherwise

an<*

Actual

C)

fi-'V

hi* J

'•»

6

(1286)

The Commercial and Financial
Chronicle... Thursday, September

1957,

Sales Outlook for Chemicals
By A. T. LOEFFLER*

1957.

seem

fied

one

Some

arbitrary but
as

a

be

can

of

matter

of

and

legiti-

growth.

It

is

of

importance
sociated

the

to

with

to

v

chemical

not

ques-

the
will

'

Will chemi-

to

have

important part of the
Even though it does

scene.

not

fully materialize in 1957, however, high impact resins going into
plastics will realize benefits from

; If so,
how
much will
they

other

-

new

sheets

^ up?
What materials will be most af-

:

uses

and

such

pipes,

<

extruded

as

pipe

fittings,

vacuum-drawn display signs, electrical coil forms, wmawvj
safety

fected?

-

...

What will be the.
prime motiany increase? \
One basis for
expecting a rise in
chemical sales in 1957 lies in a

+

radio,

vating factors in

TV

teriors,

and

and

demands for

-

-

-

aivauitlo,
helmets,
phonograph ex-

bowling

pins.

The

monomers going into

Plastics will be good throughout

brief look backward.

Expansions, *heyear, and will almost
ceramicacquisitions and over-all capital feel a boost from the automobile
spending have climbed steadily lndustry
to some extent in 1957
since early in
1955.
When the and to a greater extent thereafter,
units

new

these

that

will

expenditures

result

go

and

when this

in

on

operation ? along

new

from

stream

equipment is
production

lines, present records will almost
certainly be surpassed. This unprecedented spending p r 0
g r a
should begin to show

m

investment

returns by 1957. Sales of chemicals and allied products next
year

were

well

arjd still
above

are

the

expected to be

total

of

$23,000,000,000 that is anticipated for 1956.

may *wellL

advance,

In addition to chemicals needed

.

in the manufacture of cars, chemicals will be needed during 1957
in increasing amounts in the main¬
tenance 'of cars. Specialties such as

rivatives

resins

inflation; .ability to recognize sign* of approaching downturn;
applicability of-oU economk; laws in View, of ..rolling adjust* f
ments;since 1946; price2 rise expectations
encouraging utvei**:
tory build-up; and role of savings.
/

7

v

as

based

> "Tight
money"—the No. 1 economic problem of today—will not
torpedo the boom because it will

vinyl chloride and
vinyl chloride;

.-on

permitted to
downturn.
before

sold at the rate of

were

in? 1954

and

probably
$350,000,000 during

1957.
„

.

....

Foreign Chemical Competition

y

can

get

in

the

hold of the economy..
The real risk involved

current situation is not inflexibil-

.

amendments that further action in

1956

impossible..

was

tne liiinieuiaie

,

the

in

first

half

of

1956.

diate

This

1957,

profit

margins

would

.

Still

untested

is

the

•

contention

that such policies can be modified

quickly enough

outlook

been at
squeeze left the strong feeling that -have
while chemical sales would climb
greater odds.
in

monetary and credit policy in
slowing down booms before topheavy credit structures can drag
business activity down.".
' {

y

;;? v V business .oiit^'v
As a final word, it might be ♦ look have dif-.
noted that of equal importance to : fered so little'
the sales, picture' in 1957 is the as at present,
outlook
for
profit margins.A • while those on
squeeze in profit ratios was felt '"the ' interme.

also

can

be

so

that downturns

kept within manage¬

able limits.

-

Two of the European

central banks — among them the
West German Laenderbank—have

,Nobody
"

climb at
:V;-

•

-

a

slower rate.

seems

:4V

a

to worry

bout-

the

quar-

recently reduced their rediscount
rates
moderately
because
their
booms showed signs of leveling

>

<•

"

fourth

With First California

ter

(Special to The Financial Chronicle)

'and

LOS
f.
P.

ANGELES,

of
.

of.

1956

even

first

Calif.—John

Sheather nas become associated
anearner has Decome associated

of

the

Heinz £.

quarter
,,

,

..

-

.

,

,

Company uPtur^ for the fourth quarter had
Incorporated, 647 South Spring been anticipated right along beStrppf
Wo
twas
fnrrnprlv
with 'Cause it 'Was a foregone cotncluStreet.? He was formerly
with
sion that the automobile industry,
Paine/Webber, Jackson & Curtis
smarting under a poor model year,
and Francis I. du Pont & Co.
with

First

California

,

xv*

j

j

While,,

•

encouraging. If th&y

,

see

,,

,

be able to read the signs

well.

as

•
M

X

Vulnerabilities

What we are currently witness¬
ing is the third postwar rebound

following a minor dip in business
activity. The first one developed
in 1948; then came the recession
of 1953.; finally the straight-line
recession

of

.

!?5*1^13^ted.

1956.

mild that

was so

This

last

one

term .had

a new

the other to be invented for'it, but never-i

"

-

,

is

the handwriting on the
wall, there is no reason to doubt
that our monetary authorities will

LuedicKe

An

1957.
.

That

could

-

Final 1956 Quarter Outlook
Foreign chemical producers will
The outlook for the final
would throw itself wholeheartedly
quar- bear
closer
watching
in
1957.
'tef of 1956 is
encouraging. Inven-= Today, West Germany
-into the
production of its 1957
is-already
Tories are generally at
Two -With Hill Richards
models in the fourth quarter. This
manageable a tough competitor for United
levels. By way of
contrast, some States producers. Tomorrow, their
anticipated upturn is being rein(Special tff The Financial Chronicle)
producers in the chemical
industry cut of the world market may >
LOS ANGELES, Calif. - Billie f°rced by C repercussions
of the
went through a period of
inven- squeeze our industry to the
point R. Gentry and utj. unit Zonis xiav^ steel strike because Pre-strike invi
v* jt
«liu
Jerome zjuiuo have
tory adjustment in the second where-it hurts.
West Germany. ■ become connected with
Hil> Rich- veT}*orJes a^P®I'eiitly were overquarter and now find that
they more dependent than the United - ards &
have profited
Co., 621 South Spring St.,
on
by it. ; Labor agree- States on sales
abroad, exports four members of the Los Angeles Stock uancl» Polltlcal uncertainties now
ments reached in the
chemical in- times as much of
her-chemical Exchange. Mr. Gentry was for- P^°vlde some check on this bulldustry earlier in the yeart show a
production? as does the United merly with McCormick and Coni- 1 ?e.ss'. n.9w .seema. virtually
trend
to
longer-term contractsb States, and she has retained
high pany; Mr Zonis was with Samuel * certain .tha^t-the immediate trend
covering two- and three-year pe- tariff levels to
m
industrial production will exprotect her own
riods.
As a result,^ it seems not chemical
^
ceed the normal seasonal pickup.
industry. German tariff
unreasonable to expect less
labor rates on vitamins, > for > exarrrole.
;
f1
;
-The limits of this upturn are indiunrest in the
coming year.
are
double those of the United
: 'Sy Leavitt Adas
; cated by the sluggishness in resiA specific
influence on "1957 States.
During the coming year,
(Special to The Financial Chronicle)
dential building, Caused largely
chemical sales will be the
Federal Germany will continue to -move
LOS ANGELES.
road building
program.
Federal lr}t° specialized lines such as dyes, A. Levine has been
added to the -!™»rket, the limitations for further
funds have been voted
by Con- Plasties, pnarmaceuticals, and syn- staff of Sy Leavitt &
Company, increases m
and equipment
gress to cover this
program during?*"'etic fibers.
*
3482 C a b r i 110 Boulevards Mr^ spend.mg
7 ■■y
are Physical and
the next ten years. The
the
program
In Japan,, the average i increase Levine w«
will get under
way in 1957, and
of the chemical industry has been fnrnia TnvPQtnrc 'C •
v
size of inventories in general.
fornia Investors.
will influence a
number of areas 15% per
:
There is little doubt that
year.
This rate is ex"tight
in the chemical
industry, one ex- pected to continue throughout
money" is currently the primary
ample being explosives.
Joins Morqran Staff ^ Actually, next year, and compares-with an
retarding * factor- in i residential
.this road
building program was average rate of increase of
(Special to The Financial Chronicle)
t' building and may be on the verge
10%
•undoubtedly anticipated to some for the United States
t
LOS ANGELES, Calif.-^Toseph of becoming the key factor in inchemical
'degree—for example possibly in
production. Increases in
construction ^ as v well,
produc- L. Cravens has joined the staff of dustrial
;glycerine expansion. It is
likely tion in Japan have been particu- Morgan & Co., 634 South
Spring Nevertheless, tight ™ on ey is
that this program will lift
demand larly marked in synthetic
textiles, Street, members of the Los An¬ hardly a serious threat to the curfor dynamite
glycerine by at least
rent high level of business activpharmaceuticals, petroleum 'urod- geles Stock Exchange.
three to four
percent next year
nets and such basic chemicals as
ity.
;
caustic soda
Influence of Auto Production
This
opinion
differs • sharply
With B.C. Morton
The Italian chemical
from those
industry,
The effect of
economists who be¬
automobile pro- a lesser threat but
(Special to The Financial Chronicle)
nevertheless
lieve that "the damage 'has al¬
duction on the chemical
!
industry vigorous, trebled its output in 1955
LOS ANGELES, Calif.—Renfro
in 1957 is hard to
ready
been
done"
and
that
a
predict, but at over that of 1938 and contributed C.
Montgomery has become con- downturn will be under way in a
the same time is too
big a factor 8.6% of the country's total
exports, nected with B. C. Morton & Co., matter of months.
to overlook. If 1957
is a 6,000,000 American
purchases of Italian 1752 West Adams Boulevard.
We fully agree that
passenger car year for the industight money
chemical products will be
up in
could well prove the
try, as some now feel it will
undoing of
be, 1957, having already doubled in
it should be
considered not only 1955 over the
Shaw nooKer /\aas
- i the boom.
The reason we are not
anaw, Hnnher Add*
preceding year. The
as
a good
afraid of this is a politicai rather
year in its own
right, bulk of these purchases has been
(Special to The Financial Chronicle)
but good
than an economic one. We do not
when
compared with in
plastics
materials,
SAN
synthetic
FRANCISCO, Calif.—Vir- believe that "tight money" will be
resins, and artificial fibers,
gil Breen has become affiliated
the
:

modified

be

,

$300,000,-

will

substantial

any

will

deflationary forces

,

.

tetraethyl lead,: dyes
tetraethyl lead, ethylene
dibromide and ethylene
dichloride,

reach sales of

cause

It

Mergers of ichemical. concerns cannot yet be taken as a guaran- ity of our monetary policy, ;but
during 1957 can probably proceed tee against future ups and downs the possibility that those who are
undisturbed.by any significant'-in theeconomy. ?
v --.guiding it
may miss the signs of:
legislative events of 1956. Beforef*-j
.*
■ •; - an approaching downturn, .?• ;
v ;•
Congress adjourned for the siim- A
• -J
- ,
\
'
< The
experiences in the field of
mer, the Senate Judiciary ComThe Immediate Problem
monetary
policy ? both
in
this
mittee reported out a pre-merger ; , There has seldom been
a
time country and in Europe have demnotification. bill so .loaded i with in recent
fyears when bpinionsf on onstrated - the
effectiveness» of

in

used

:■>

level

12

a

from the

rate of the past years. Af¬
fected will be such acetylene de-

antifreeze,

000

exhibit

up

longer be feared, but disagrees with economists

reaching critical:
cyclical position, and raises questions regarding: definition of •

to 8%

-15%

no

present tight money a serious threat to current high
of business activity.- Believes we are

see

trichloroethylene, neoprene, aery- not be permitted to do so, but ht
lonitrile, vinyl acetate, aerylates, the same time, continuation of the
way, however, and probably
methyl styrene, and vinyl esters, era 4 of government intervention.
be an

1958

cal sales be up
in 1957?
^

,

next year

materialized.
This
substitution still appears to be on

tions:

A. T. Loeffler

to"

sions need
who

acetylene derivatives appear to be ¬
growth spurt and '

sub-

appears,

answers

the

However, the extensive

stitution of plastic parts for metal
parts in car interiors that had
been expected for 1957

form for him-

keener consumer-dollar competition. Shares belief
deep depres--

at the. start of a

styl-

ing<

industry to
self

a

-

rising costs and :

rubber
in
1955,,t* United
capacity is slated to jump "
to an estimated capacitv
of-1,460,- 000
long tons in
1956," "a'nd nto f
1,718,000 long tons in 1957. ' As?
another
example,» acetylene and

The chemical

;

interests in inflation today. Dr. Luedicke characterizes
present
situation as one involving a conflict between

States

1957 is expected to be a
year of
broad changes in automobile

as-

example, a ^sizable
synthetic rubber out-

in

put is expected next year. From ?
a total of
972,000 long tons of ac- tual. capacity of all types of syn¬

great v

everyone

For

increase

comfortable nudge upward.'as
result of activity in Detroit,

jinate concern,

Nationally known business editor, in concluding inflation in
any form is unsound,
dangerous, and, if continued long
enough, leads to its own undoing, reproaches the many vested

thetic

averages.

-

segments of the chemical

industry can be expected to take
bigger slice than others of 1957's

process
industries most directly
affected, such as rubber, glass,
textiles, antifreeze, will notice a

justi-

convenience

Editor "The Journal of Commerce"

a

watching.

five-year

calendar year may

Business Trends and Outlook

-

.

By DR. II. E. LUEDICKE*

industries; and (6) sizable synthetic rubber output.
Believes foreign chemical producers in
Germany, Japan, Italy
Considering the chemical sales

,

.

Synthetic Rubber Output

process

outlook for

Ramification of Inflation in

tons in

(1) chemical sales
to rise well over $23 billion total
anticipated for 1956, with
profit margins climbing at a slower rate; (2) unprecedented
spending program resulting in investment return; (3) less
labor unrest; (4) Federal road program
influencing chemical
sales; (5) a good auto year to nudge upward several chemical

and Mexico will bear closer

At

year.

1,605,000 tons in 1954 to 1,300,000
1955, and may drop below
1,000,000 tons both in 1956 and

;

Mr. Loeffler's 1957 expectations include:

d

last

the same
time, exports of United
States sulphur have declined from

Vice-President, Food Machinery and Chemical Corporation

1

they did

as

27,1956

.

theless it was an interruption in
the strong postwar upward rush
0f the economy. ...
The

reason why we have busideclines is that during booms

ness

maladjustments
economic

creep

•

into

the

which

structure

ulti¬

*

Calif—George'>by

th% m°rt®Sge

plant
whlchu

.

-

mately must be corrected.
tunately, the mildness of

Unfor¬

three

our

postwar recessions does not prove
that only minor maladjustments
have

developed in our economy
during the postwar boom.
The
fact of the matter is that,

because,
specialcircumstances,
there"

of

has not yet been any genuine, test?
of the soundness of the postwar

-

•

'

[;

?,

—-—

Natlonaf Sf ndustrial*

board's

4th
MarU-'Hg
York, Sept. 21, 1956.
m

; •

f

,

# '

e'„'c"

C

Conference,

^xico is Sulphur. Her
becoming a real
in

Petlt°r

New

are
•

-

*'




t\ '

•

'•

-

'

'

expected
*

COm- with Shaw, Hooker & Co., 1 Montgomery
Street
members
of the
again in San Francis.co Stock

address

by

Dr.

Luedicke

before

exports

to

jump

Exchange*.

-

boom." Any .-/time

seemed

-

- a ^test
was post-

it

high level of defense

continued

spending, and, this year, an unex-r
pectedly sharp flareup in the producers' goods boom.
■"

There

the

is

growing belief that

a

with

ease

which

these

three

postwar disturbances were over¬
come indicates that future
adjust¬
ments

will

be

successfully

kept

within similar limits.

This
lief

goes

that

a

depression
early • '30s
feared.

We

further than the be¬

repetition
like ' the
need

share

of
one

a

deep

in

the

longer

no

that

belief.

be
?

It

has been

sufficiently demonstrated
that monetary management
has
improved enough to prevent fi¬
"panics"
1

1956.

such
v

poned because of varied forms of?
governmental - stimulation,
the -

nancial
22,

imminent,

^

which

Continued

on

usually
page

43

-

olume 184

Number 5572

The Commercial and Financial Chronicle

...

[

:

Financial Fruits of Leisure
I
• • v

Enterprise Economist

r

•.

.v'j

;!■.

'

?

'

sport

shirts

of

wear

of

portable

electric

and Decker

tools.

common

Black

from

sells around "

45, listed NYSE. And while we're

sweaters.

;

\5ome random notes about
companies and industries likely to
benefit from the increased
hours of leisure which automation,
and

every-

variety,
leather and drizzler jackets, sport
coats of corduroy or suede, slacks.
Bermuda ; shorts,. swim wear
and

;"

..V;

,;

McGregor turns out almost
—

By IRA U. COBLEIGII

r;v*~

_

.

4/ thing for casual and leisure

their

every

You have

come

to know

about

McGregor in part because
the company spends over $1 mil/ lion a year on advertising and
'

on

we

this

share

a

Not to

craze

Outboard

"do-it-yourself" business,
bring in some related

turing

should

companies that derive

travel.

boating

7

(1287)

mention

the

which has propelled

Marine

(leading

and

Manufac¬

maker

of

out¬

board motors) into new

of

corporate

earnings from this trend tc

magnitude
"
j..

perity/

craftsmanship. ;We had in mind.

heights of
and/ pros¬

.

<

We couldn't

Kendall Co. and Johnson & .John¬

begin to

cover

them

all—fishing tackle and guns from
economy, are delivering to the American
son, leading makers of bandages
Abercrombie and Fitch, guns from
*
promotion and distributes its and dressings. Saws and
I " IfSp.
:V..' wage earner. ■*:
drills, in Olin-Mathieson; home gardening,
wares - through
over
7,400 retail the eager but clumsy hands of
bridge, archery, chess, motion pic¬
j" Shavea nioer topical tion of Rawlings Manufacturing'outlets.,K
amateurs, can goof off!
tures, skin diving, water skiing, /
For
pi?ce;:f?; (maker and wholesale disof especial interest here is the
those; who use leisure in and reading of newspapers, books,
e
gone 'down the line w a r
3ust, tribtitor of complete lines of base- fact that McGregor-Doniger, Inc. horse playing, such companies as, and magazines—all of which ab¬
flown the lini for
four day ball and football equipment) ranks
only within the past 10 days listed Roosevelt Raceway, Narragahsett, sorb our spare time and variously
v.;
:K>.cCAl^[flrw
as
the
leading organization f in its? class.. A shares on the New
Park, Toronto Jockey Club, Mon-. make- vast contributions to cor¬
/ television sets
sporting goods equipment. Serving; York Stock Exchange where they* mouth'Park
Jockey Club, all have porate earning power and the div¬
/quoted at '1{5;; with > 50c.; I shares i traded in the Over-the- idend income which, in so many

bountiful

most

a

Vice^President^NiSk
»

-k-,

■

<

Counter Market;? and ;if you hap*

makes -luxuriant
leisure
possible. «In fact, investing itself
can
buy a single share of Los, yields some of the finest financial
Angeles Turf Club, which Owns fruits of the application of our
■:
Santa Anita. And if you Want to leisure time.
>.
\' ; •; /

pen toi have? a spare
l_-

other
t h

•

.

side

hup ^UP -OUIIIUI b„;

,

of

leisure, time as wpll.
debt
lies ahead of

political

e

f ence,

Adlai

common

fers

-

■

•

annual
annual.,

wage,

pl^0S

eommPnt

politicos

time

wit^

income

tA

whh.h

h,.

i

+

potentials

us

of

tH

reflect upon
this

westinghouse

ard

"

which has recently .entered an^11-1"^
other leisure-slanted pastime by
acquiring Argus Cameras Inc.
1'i

i

;

'•

t

some

leisure

consider

Eastman

Kodak-,

then Skil Corp. (Over-the-Coun-»
ter Market at 24) is a big saw
and tool supplier, while Black and
Decker manufactures a whole line

1955

net

saies

above $46

million.

and

'

~

.

.

percentage, at the
$2 window, you can buy stock in
the

your

Automatic" Machine' Co.

of y

Maryland ? (which -controls
Then

Big maker

jTthe^StSto

you first regard
oo+tr»rt

cases,/

you

,

improve

Motorola, .Emerson, General Elec- Totalizator)/

been liberal

sponsoring this line is McGregorpromissory Doniger, Inc. They're the largest
political cam- •• manufacturer in sportswear with

all

set

per share net ^ $1'72'
Another entry In the' film, flash
: Whether you're playing or and focus department is Bell-&
patching, you need sportswear. A Howell, whose common stock sells
renowned trade mark in.this field at 42 paying $1 in cash, plus stockt
is
"McGregor."
The company
If leisure leads to carpentry,

.them.

°

othe?

such

makers as Zenith, Admiral, Philco,

L«,»

nrnninJffic
SatH,or.c

■

with

.$70,000/

the
"

'

there's .a„ whole

.

f

•

of

area

leisure, expenditure of both time
and money involved in'consuming
the products of Schenley Corp.,

Distillers-Seagram, - Browri-F- o
man

Corp.,

National

Anheuser-Busch
These

with

are

t and

•

Ruppert.

In the last ten years,

investments

in

Canada

public

$10,322,000,000 in

ing to

recent report of the Do¬

a

minion

Bureau

of

In the

first

Ottawa.
the

in 1943
1955 accord¬

total

Statistics

half

Travel opens up

of

which

Canada show

General

over

Motors,

Oil

companies

-

ment. >

was

Our

U.

'American
S.

buy

any

of these securities*

•

NEW ISSUE

„

r ..Ttt

paiTts—all these outlays will total
some
$30 billion! annually. • And
this staggering sum is on the in¬

'■fill

^

:Jq.

*'"!/»
..

K*iu

■■

)i,V
,'

Now,

•

leisure
There

alone

>p'

$75,000,000

not

was

plenty of
the multitudes in
1932,

leisure for

but it was.a.drain not
our

is

4

p*r ff::"i <*?*'

crease.

enough.

September 26, 1956

(i

' >0 f:.tf '

a

because

;economy

drive-in

something

vital

was
missing—money. Today,
however, with the highest wage-

scale

and

levels

of

come, the fullest

longest

paid

earliest

personal

in¬

and

the

(and most) pensioned

re¬

tirements in

all history; hours of
replete with spending
And this spending money

leisure

;

;■

are

money.

is

4%% Notes due 1974

employment, the

vacations

Bated October 1,

1, 1974

par¬

ticipation sport today is bowling.
social, co-educational, com¬
petitive and you don't have to be
It's

a

Due October

1956

big builder of corporate profit.

a

For example, the greatest

four

letter collegiate athlete

Price 98.45% and accrued interest

to

get

fairly good at it. Main sup¬
plier vof "bowling equipment for
has been Brunswick-Balke

v

years

Collender

Co., whose

stock is listed
sells

39

at

little

common

NYSE, where it
paying $1 to yield a
on

5%.

over

;

It

earned

Copies of the Prospectus may be obtained from any cf the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the Prospectus may legally be distributed.

$2.52'

share last

year and should do
better by virtue of an automatic
pin-setter it has developed. Bruns¬

per

wick-Balke also is

a

leading

pro¬

ducer of pool and billiard tables.
American Machine and Foundry,
maker of automatic machines and

electric
future

motors, also has
in

bowling

with

a

The First Boston

bright

unemployment
but

has

had

pin

Goldman, Sachs & Co.

boys,

noticeable

on. pin-un
girls). American Ma¬
chine & Foundry common sells at

33,
last

pays

$1

plus

a

stock

Eastman

the

most

sports,
popular,

followed by

baseball and football.
major supplier of equipment
here is Spalding (A. G.) & Bros.,
A

Inc. which with its recent acquisi-




Dillon, Union Securities & Co.:

Harriman Ripley & Co.
Incorporated

Merrill Lyneh, Pierce, Fenner & Beane

year.

is

Blyth & Co., Inc.
Lazard Freres & Co.

.

extra

In the field of spectator

basketball

Stone & Webster Securities Corporation

effect

among

no

Kidder, Feabody & Co.

Corporation

its

pat¬
ented pinsetter (which has created

?

Salomon Bros. & Hutzler

•

Smith, Barney & Co.

m

Gulf, Texas, Standard Oil, ing from $4,990,000,000 in 1945 to
etc., railway, steamship, airplane, $9,622,000,000 /in 1954 and last
and hotel shares, all flash across year another increase of $700,000,the mind as gleaning dividends 000 was added to 1954 total.

partici¬

pant),
travel,
fishing, hunting,
theaters, taverns,. TV and .horse

•

noteworthy growth
the past ten years, progress¬

like

an offer to sell nor a solicitation of offers to
The offering is made only by the Prospectus.

y..

invest¬

investments

a

^

'

at

1953

foreign inflow capital
was $305,000,000 most

limitless vistas
the; investor; - Motor car .com¬
panies, such as Ford, Chryslerand
to

This advertisement is neither

hours; and if

of

into Canada

past 25 years, we have re¬
duced
the
average
work
week
add up all the things that
make up leisure
spending—games
and sports (spectator and

in¬

creased from $4,990,000,000
to

the

you

have

companies

available

recreation, for corporate profit. In

from 52 to about 40

American

for

prosperous

shares

$10,000,000,009

r*

Distillers,

on NYSE> Pays 50c (plus an extra the Daddy of them all. Common purchase. And if less stimulating,
ln sto?k) and ,s axpectei?
^ stock of this company has been a and perhaps less- turbulent, im¬
some improvement over last year's top drawer dividend payer for bibing is preferred, then consider
fiscal, year ends Oct. 31. 1956) decades and sells today around 90. Coca-Cola, Pepsi-Cola and Canada

fn

of

-

PniiiwiKin

of sporting goods addition to Argus, vou sbohM eVconsider Eastman Kodak-.

so good:- and
the amazing -thine
©bout these quite lavish political
promises is that some of them

Wifj,'+wD

companies

Radio Corpoand

'"sendhS sfde

f0gethef

Its uoimnuu SLUUK seiis aivuiiu-i* tainly
"loTJ™ ;lls common stock sells around 14-tainlv

mA ntt
pTkiVmSI
any 7e?noSc SeT
has yet dertsed wTiever hS

'

of

Speaker of ^earneras; photog>
a fabulous, hobby and/in

enjoy t on a
luxury never before

might jcome true1

AWim-ina'

onnnliow

ofThese e^.nent
eTnrat

nrnmioi^

arc

and

moot

list

» meat supplier (and/eating
"hieat is a popular leisure pastime,,
come f(r -think r of ^it) - but
nil Wilson is. also the second largest raphy is

"The mfla tf n?^v

tLt

n

wh~ni»

now

'seems3 uDwarf6now^Com6

watching ?

3

-

with an indicated
Earnings here

w.^ asf.?rflnat? have
mon dividends

e

oflL^

merely ; confine
fhrt
bote

19

A

572,827h^ado^Shere

of -$l.

-

"
undiluted

H

years.

waee

tj-nd

the

ib1 S SaR StlA uninterrupted since 1945.
Wilson & Co.
•••

Cobieigli ■/

dividend

snug

^ua" anteed
hr

U.

Ira

the

$9,000,000 in

shares of Spalding

Steyenson.of-- selling- at

-

White, Weld & Co.

V

v''

The Commercial and Financial Chronicle

Thursday, September 27,1956

...

(1288)
Rubber industry

Discussion

—

Calvin Bullock Ltd., 1 Wall

—

$75 Million Issue of

Street, New York 5, N. Y.
Treasury of Tax Saving Ideas—J. K. Lasser—$12.50 per copy
7 (two weeks examination free)—Business Reports, Dept. CF-1,
Larchmont, N. Y.
■
"
7

Rights listed

Warrants and

Recommendations & Literature
to

,

mentioned will be pleased
the following literature:

understood that the firms

It is
;
r

77/777Z777.;/■■

send interested parties

Resources—Explaining why the area served offers such
opportunities—Utah Power & Light Co., Dept. K,

Box 899, Salt Lake City 10,

.

Utah.

—First

Inc., 607 St. James Street, West,

Letter

Commercial

—

,

Canadian
pany,

Bickle

Digest—Monthly—Wills,

44 King Street, West, Toronto. 1, Ont.,

Canadian
of

Investors

the

Mining—Weekly
fields

mining

(specimen
Richmond

newspaper

$7.50

—

per

Com¬

&

Canada,

covering developments
year;;/$4.50 six months

request).—• "The Northern Miner," 116
Street, West, Toronto, Ont., Canada:
'I

copy on

Newj^Weekly; publication on mining actiyities covering copper, uranium, base metals, oil and gold—
$8.00 per year; $5.0C for six months—two weeks' trial sub¬
scription^free to: w
Quebec Miner,"
Suite 104, 455 Craig Street, West, Montreal, Que., Canada.

(Canadian Mining
.

.

Foreign Letter

Report

—

—

Burnham and Company, 15 Broad

Street, New York 5, N. Y.
— Current information — Yamaichi
Co., Ltd., Ill Broadway, New York 7, N. Y.

Montreal

Stock

Montreal,
Oil

Que.,

453

monthly review—
St. Francois Xavier Street,
get tax

protected income—

Institute and Francis L. Durand—$12.50
per copy (two weeks examination free)—Business Reports,
./ Dept CF-1, Larchmont, N. Y.
J.

K.;Lasser

Tax

Iniex—Folder showing

up-to-date .com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc:, 46 Front Street, New

Over-the-Counter

York

4, N. Y.

selected

securities

for

income,

containing lists
growth and trading—

suggested portfolios to yield 5 and 6%—
Edward A. Purcell & Co., 50 Broadway, New York 4/N. Y.

Products and Processes—rBooklet
and

Union Carbide

Corporation—Analysis—Shearson,

Analysis

—

—

Ham-

Unlisted Trading

ingly
Expressway,
third
series,
due 1963-1995, inclusive, at public
sale on Oct. 30, 1956. This decision
was arrived at following,a meeting,

N. Y.

values
Hanseatic Corporation, 120 Broadway, New York

American Telephone & Telegraph Co.—Table of related
—New York

5,

how

alloys, carbons, gases,
plastics improve many articles—Booklet A,
and Carbon Corporation, 30 East 42nd Street,
on

New York 17, N. Y.

N. Y.

Lehman

visers to the State of Connecticut

fiscal

Morgan &aCo*,-634 South Spring Street; Los Angels 14, Calif*
investment Company — Fact book— North
Company, Russ Building, San Francisco

Commonwealth

Calif.

/77|/S7?:77: >Z7 7

Consolidated; Cement

7'

-V"

third

>7/^ 'vZ

• ••

Bissell &

'

'

the

-'

r

Further
nounced

,—

7

—

Memorandum

has

Report

Westcoast

Transmission

Ludman Corporation

—

Co.

Memorandum

David
ciated

Canada, Ltd.

—

Bulletin

—

Signode Steel Strapping Co.

Report

—

Public

Spencer Chemical
Chemical

.

Sutherland
stitute

Equally Attractive For Capital Gain And Income

» ,

of

Aircraft Radio Corporation

;

&

Co.

asso¬

Noyes

&

&

Shields

and

■

»

L.

HILLS/Qalif —Ray-

Prewitt

.

;

Charles R.

and

Arthur Hogan

Analysis

—

HOLLYWOOD,
Seaton

M.

-•

.

Adds

Calif.

—

has been added

Goldie;

;

to the / ;

'
the;; *
Exchange. ; * 7

staff of Arthur B. Hogan Inc.,

6630

Subset Boulevard/members of

Y,'7Z-7v..;7,:7lV'

•

Los

Angeles

Stock

Joins J. Barth Co.
LOS ANGELES,

analysis—American In¬
Incorporated, 125 East 38th Street,-

Company—Special

Management,
*

—

Co.,

Forgan &

Calif.-^-Charles7

joined the staff of J /:
Barth & Co., 3323 Wilshire Boule-'
Yard. He was formerly with Co- *
humbia Securities Company of California and Shelley, Roberts &
E; Todd ha^

.

Corporation—Analysis—Glore,

(Special to The Financial Chronicle)

.

Memorandum — Dominick & Dominick, 14 Wall Street, New York 5, N. Y.
7 7-;

Thor

with

now

(Special to The Financial Chronicle)

Company—Report for fiscal 1956-—Spencer
Kansas City 5, Mo.

Thompson Products, Inc.
•-

is
Hemphill,

Service

7 New York 16, N. Y.

•

Calif.—

HILLS,

Garraway

Inc., 9235 Wilshire Boulevard. Mr.,
Prewitt
was
previously
with
Samuel B. Franklin & Company.

Company, Dwig'nt Building,
Paper

;

Rudolph have been added to the:
staff of Daniel D. Weston & Co.,

Carl ML

Corp:—Memorandum—-Goodbody & Co.," 115 Broad-.
York 6, N.

S.

BEVERLY

mond

& Co., 60 Beaver.
7:Zvf/7 77\7*>'..
Winslow, Cohu &

Stetson, 26 Broadway, New York 4, N,
Sinclair Oil

;J7

./.

Eisele & King, Libaire,

'.7v/
—

Azusa

77

(Special to The Financial Chronicle) '

&

Royal McBee Corp.—Memorandum—H. Hentz

-Street, New York 4, N. Y.

North

711

u...

of:

Two With Daniel Weston

/'. Loeb, Rhoadcs & Co:, 42 Wall Street, New York 5, N. Y.
Philadelphia Fund—Eight-page booklet—Fahnestock & Co., 65
Broadway, New York 6, N. Y.
Pinellas Industries, Inc.

staff

the

Company.

4

—

-

Hemphill, Noyes

Pont

du

7.: j;

r7Co., Jngraham Building, Miami 32, Fla.
New York Capital Fund of

.

Co.; 9478 Santa Monica Boulevard.
He was formerly with Francis I.

Frank D. Newman ,&

—

<,

(Special to The Financial Chronicle)

BEVERLY
-

\

Wisener and

—

'

%.

-

tf-i-v

i......

With

;

Company, Ltd., 73 King Street West, Toronto 1, Ont., Canada.
Also available are reports on Canadian Delhi Petroleum Ltd.
and

an-*

i'... ■■■*;

•

„

.

Grinne.ll Corporation—Analysis—Boehriing & Co., 1529 Walnut
Street, Philadelphia 2, Pa. r. - - /'/v x; ~
Imperial Oil Limited—Booklet—Wood, Gundy & Co., Inc., 14
Wall Street, New York 5, "N. Y. "/
77
"
*
International Telephone and Telegraph Corporation—Analysis
—Van Alstyne, Noel & Co., 52 Wall Street, New York 5, N. Y.
—-

'

-

added, to

been

Harry
Pon,
Avenue.""
•J

.

Interprovincial Pipe Line Company

be

statement

respecting this salew

.

—

.

will

official

AZUSA, Calif. —Ivan J. Sharp

Muir Investment Corp., JOJt
North St. Marys, 'Sari Antonio 5, Texas.- Also available is
a memorandum on Lone Star Brewery. 7 77 * : 7/^77" 77
General Tire & Rubber Company, — Bulletin — Baehe & Co.,
36 Wall Street, New York 5, N. Y. '
- 1
'.
"
Y
Green Bay Mining & Exploration Ltd.—Report—De Pontet &
:
Co., Inc., .40 Wall Street, New York 5, N. Y. 7 \ i ;
V —
,

the

(Special to The Financial Chronicle)

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

Friglkar Corp.

total

a

With Harry Pon ::
*.-.77
>'7r«;.

<

Laird/

details

in

issued

to be

';7/Z 7

r

City Bankof; IS[ew York— Circular

of

Turnpike, of which $200,000,are
presently outstanding. _7 7

-

Co., Board of Trade B.uilding, Chicago 4, 111. /'

First National

of

000

/
Continental Aviation and Engineering Corporation—Bulletin-—
DeWitt Conklin Organization, 100 Broadway, New York 5,
New York.7// 7
777Z77/ 7/7'7':7 77'' 7 7 - :*
Dan River Mills, Inc.—Memorandum—Arthur M.. Krerisky &
7

instalment

$445,000,000 bonds authorized for

^

Corporation—Analysis—Vilas & Hickey,

■'/. 26, Broadway, New York 4, N. Yi„

ad-*

The offering will constitute the

American Securities

7 4,

Brothers, ^financial

the Connecticut Turnpike.

on

Co. —- Memorandum"— Shields; & '
Company, 44 Wall Street, New York 5, N. Y.

.

.

City of Connecticut
officials with members of

-

Southeastern

.

,

in New York

Burroughs Corp.
Memorandum — Paine, Webber, Jackson &
Curtis, 25o Broad Street, New York 4, N. Y. 7/ *

/. way, New

Banks, Brokers, Dealers

Treasurer

Ottaviano, Jr., announced
Sept. 26 that he plans to offer
$75,000,000 State of Connecticut
Expressway Revenue and Motor
Fuel Tax Bonds; Greenwich-Kill¬

Co., 14 Wall Street, New York 5, N. Y.

Dept., Ira Haupt & Co., Ill Broadway, New York 6,

State

John

'

7 Stout & Co., 50 Broadway, New York 4, N. Y.

Harris, Upham & Co., 14 Wall Street, New York 5, N. Y.
Portfolios—Two

chemicals

Hardware

advisers.

Connecticut

York 5,

Broadway, New

100

-

American Hospital Supply Co.

an

Pocket Guide for Today's Investor—Pamphlet
of

Corporation,

'■

•

Leh¬

Bros., the State's financial

:

Steel Corporation—Table of related values

/

Canada.

Investments—How to

Gas

&

Exchange,

Securities

'and

Exchange—Booklet

Stock

according to

'

\

..

Japanese Stocks
Montreal

mill &

news

Monthly letter on Canadian
business developments—The Canadian Bank of Commerce,
Business Development Division, 25 King Street, West, Toronto 1, Ont., Canada.
•
*

Canadian

7

Business Review—Monthly

Greenwich-Killingly

Expressway,

California Western States Life Insurance Company—Bulletin—

Montreal, Que., Canada.

bulletin on Cana¬
dian economy—Bank of Montreal, Montreal, Que., Canada
(New York branch 84 Wall Street, New York 5, N. Y.).

Canadian

Boston

York.

American

program

Stocks—Selected list—Kippen & Company,

Canadian Bonds &

New

'77

Oct. 30

on

Proceeds for

♦

»

Trinity Place, New York 6, N.'Y.

Allegheny Ludlum

the U. S. Navy's billion

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

atomic

dollar

Street,

./

man

industrial

Atomic Letter (No. 21)—Comments on

To Be Sold

Corporation—Bulletin—Troster, Singer & Co.,

Radio

Aircraft
74

Area

»

Adelaide

25

&

7- Connecticut Bonds

Stock Exchange—

the Toronto

on

Company Ltd,
West, Toronto, Ont., Canada.
Dobie

Data—Draper

■

Co.

40. Wall

I
•
.

:

.V

Street, New York 5, N. Y.
•

Long Dividend Payer (22 Years)

TMT Trailer

•

•

•

•

•

Consistent Earner

(In A Volatile Industry)

Yonkers

Raceway,

•.

Growing Backlog (Now $6.2 Million)

7

,

*

DEPENDABLE MARKETS

Reprint of Recent Letter

By

•

West

-

■

F. Cassedy, Jr., President
•

;

•

SAN

"

'

74

N.

Y.

Building.

affiliated

now -

with

Co., First National

'

,

.

/

'

///'

;

?

HAnover 2-2400




Avery Eppler Adds 7/77 !

ert

W. Kelley has been
staff

'

,

Calif.—Rob- V

REDWOOD CITY,

/

Chronicle)

(Special to The Financial

Company,

(Special to The Financial'Chronicle)

SAN FRANCISCO, Calif.
G.

f

Teletypes NY 1 -376=377-378

.

of; Avery

added to

L.

-

-

Eppler 7

1839 Broadway.

Two With First Calif.

Security Dealers Association

Trinity Place, New York 6, N. Y.

-

7

DIEGO/Calif.—David M.

Dean Witter &

TROSTER, SINGER & CO.
Members:

•

Weston & /■>

(Special to The Financial Chronicle)

the
y

DempseyrTegeler & Co., 210
Seventh Street. He was for-;

Co.

With Dean Witter r

.

Sellgren ;is

.

with

;;;

connected

W.'Aver ill has become

merly with Daniel D.

Yield 4.74% At 19.

;

V

Chronicle)

Calif.—Lauren/ :

;

Promising Future

—

LOS ANGELES,

Inc.—Bulletin—Hunter Securities Corpora¬

;

(Special to The Financial

r

Broadway, New York 4, |N. Y. Also in the same
bulletin are data on San Juan Racing Association, Inc.-and
Sunshine Park Racing Association, Inc.

Dempsey-Tegeler

'

Y.

tion, 52

Strong Financial Position

Available

With

description—General Invest¬

Ferry, Inc.—6-page

ing Corporation, 80 Wall Street, New York 5, N.

McCoy

and

added

have

DEMPSEY-TEGELER & CO.

been

First

California

porated,

Daniel

300

to

G.

the

With Rudd and Company

/

Lee

(Special to The Financial

Minto

staff

Company,

Montgomery

—

of

SACRAMENTO,
J.

Slobe

is

now

Chronicle)

; v

Calif.—Robert
affiliated

with

2608 El Paseo

Incor-

Ruud and Company,

Street.

Lane, Town & Country Village. 7

*

Volume 184

Number 5572

...

The Commercial and Financial Chronicle

(1289)

present level until wel into
and then

Bright Construction Outlook

Some

pick

1957

needs, consider data compiled by
the F. WV Dodge Corporation in

to a higher level,

which

signs

encouraging

Builders

are
finding ways to
through the use of materials and designs that will reduce "on-the-job'' labor. For ex.ample, many are now using dry

Chairman, National Gypsum Company

hold costs

Two percent

higher construction in first half of 1956

1955

over

leads Mr. Baker to conclude that over-all construction for the
"r

will exceed 1955 by $1 billion.

National Gypsum chair¬
contemplates staggering $600 billion prospect for coming

year
man

wall

will

The picture is bright. Construc¬
tion
to
for

is

the

';'7 This

first

months

six

2%

was

• v

of

Home

1956.

dent

'

the

over

ord

for buying new homes
by trading in their present resi-

first

half

1 1955.

If

tinued

for

the

will

f

o

result

a

that

anticipate

been

the

in

ties.

does

tial is

a

\

poli-

explored

to

for .over¬

during

AT~.„

consWuc-

tion

in

Melvin H. Baker

lion 7 above

Tn

_In

,v:

1955.

are

pnnc:trnrtinn

into

I

taken

to

up

that

present

may

the

for

for

that

A further

be

may

amount

leading

when

evaluating

by

*

account

rising.

or

nothing

that

we

Reasons for

Year's Marked

Next
Rise

xx/ill ;lr\c%

lannthnr

WH1

;

rannvri

World

'•

vnor

fAt«

fhe" end
about

the
to

mander in charge of purchasing
during the period 1914 to 1919.

amount

Product.

spent

'con_

f0r

was

in

Statistical

of

records

the

(Special to The Financial Chronicle)

ln

.

.no1

.

.

of

yea^'Tdecrease

°the

restrictions, I do not view

■■'j l:

Washington tell

me

Demand for

mar-

is

houses

new

still strong — vacancy rates are
ra
low and prices of exis'tirfg homes
v,;.—A.
are firm,
-

the
rate

threatening inflation have

ments

collapse in the housing

ket.

Authorities
that money

money.

as

.

is

recent marriage and birth

astounding

even

roads

and

bridges.

Sj According to the
is

any

.a.i

*

.

mortgage

grave

of

•"

will continue tight until the ele-

of the medium and large

was

latest

producing at the rate of
$400 billion a year.'
will
probably reach $500

now

more

This

lngshould

7he"
reach about

almost

$10

$53,bilbillion more

With Paine, Webber

cheaper.
is

Business

good, with no sign
downturn.
Unemployment

reached

lowest level

its

ever

in

peacetime. A record 66.5 million persons are now" employed.
The annual rate of personal income

the

is

highest

Average take-home

history,

in

pay

is

at an

Home

all-time high.

materials should be adequate,

increased

with

capacity and high pro-

in

shortages

steel

and

maybe cement.
The

value

dollar

of

new

high-

construction and expansion of

privately
reach

utilities
in 1957.

owned
billion

$5.5

may

The

rising interest rates
relative shortage of

the

reflect

lendable

become

funds.

railroads.

:

...

Highway construction is reaching a much faster pace after lagging for years. This is partly due
to the government's multi-billion
Federal

dollar

aid

program

now

getting started.
' :
;
* Private spending for new industrial
plant
expansion
apart

This is not

the

billion

:

utilities

in

estimated

Labor

less

investments.

The

1956

Commerce

in

commercial

limitations on Savings and Loan
Associations for borrowing from
the Federal Home Loan Banks
have served to hold down the,
supply of mortgage money,
Then, too, the Federal Reserve
has tightened credit because it

by 10%.

-

address

by

*An
Annual

7

Mr

Baker before

Presdents

Past

-Dinner

of

DigitizedEngineering Society of Buffalo, Sept.
for FRASER
"7

1956.

,

;

■

the
the

20,

^

yT:

(Special to The Financial Chronicle)

SAN
F.

MARINO, Calif .—William

Staunton

with

III

Blalack

ington

&

is

Drive.

made only by the Prospectus.

Capital Stock
Share)

7

- >

a

The 1 750 (XX) shares

duction below 145, and halting
price rises.

Then there is the high cost of
materials.

—

both

Builders

construction

costs

labor

report

have

and

that

gone

Non-Discouraging
*7

r

•

7

vided in the Prospectus.

up

Copies of the Prospectus are obtainable from the undersigned only in
States in which the undersigned is legally authored to act as a dealer

^

in securities and in

mu

.

j,

.

There are indications that
starts

which such Prospectus may

be legally distributed.

Homebuilding

Outlook

A careful study of these deter¬
ring elements indicates you need
not be diSCOUraged With the Out-

housing

Insurance Com¬

pany are

j_ng the index of industrial Pfo-

construction

of capital stock of The American

offered by it to the holders of all the 1,750,000 shares of capital
stock of American Automobile Insurance Company on a share for share
basis, subject to the terms and conditions as set forth in the Prospectus.
The Exchange Offer will expire at 3:00 P.M. Central Daylight Saving
Time on October 15,1956 unless such expiration date is extended as pro-

has two distinct objectives—keep-

look.

now

will

continue

at

Kidder, Peabody & Co.
September 27,1956.

7 7

.-.7 7.;, 7

,,

7;

77.

..

"y

t

.

.yyw

affiliated

Co., 2486 Hunt-*

1,750,000 Shares

(Par Value $2.50 per

manager

Blalack Adds to Staff

The American Insurance Company

along with land cost, to up the
price of new homes., They point
out. that over-all costs are up 6%
over 1955. The public is not symDepart- pathetic to this rise in cost.

building out-*
probably top
^\'\7

will

1957

sale. The Exchange Offer is

as

of the oil securities department.

Exchange Offer to Holders of Capital Stock of
American Automobile Insurance Company

higher

minimum down payments, slowdown on mortgage handling and

reach $3.3

anticipate for 1956.

New

lays

offer oj these Securities for

1957, compared to an
$3
billion which
the

and

ments

may

an

York Stock

formerly with

Co.

mortgages
attractive for long

.

from

was

Seidel &

Thus,

time
of
renewed
business
house, Niagara Mohawk, and at 6rowth and substantial credit exleast a dozen of the nation's larger pansion. In this, Federal Reserve
graph, General Electric, Westing-

Street,

and

utilrailroad, telephone, gas plant and
light and power firms.
This can feared
the inflationary consebe supported by merely noting Quences of the current wage inthe expansion programs of the crease might lead to dangerous
American
Telephone and Tele- price spiral. Wage boosts come at

significant gains among
ities will probably occur in
most

Eighth

the New

He

affilMever

Improvement Financing,

j* ductivity sufficient to preclude all term
spot

homes

new

on

Recently

Nationwide supplies of building

Morton

become
Frank-

West

325

Exchange.

-

mortgages

'

h
Qto™

latl
& Fox,

(Special to The Financial Chronicle)
the increase in births continuing
SANTA MONICA, Calif.—Kobon into the 1970's.
>
Even
at
present birth rates, ert
D.
Evans, Jr., James M.
population is expected to reach O'Brien, William C. Robbins, Jr.,
ministration. It also increased the
190 million by
1965., i This high and Norman Sobel have joined
required down payment for loans rate of births and marriages will the staff of Paine, Webber, Jackfor the Federal Housing Admin- create a need for more homes and son & Curtis, 1220 Fifth Street,
istration.
in fact, more of all kinds of build- Mr.
Evans was formerly with
It is significant to point out that ings necessary to serve a larger Dempsey - Tegeler
& Co.
Mr.
\03ns insured by the VA and FHA
community.
O'Brien and Mr. Robbins were
constitute more than half of all
And, in thinking of current with E. F. Hutton & Company.

Will be

Adl

members of

recall, last July the
government placed a down payment requirement for home loans
guaranteed by the Veterans Ad-

.

Calif. -Her-

ANGELES,

.

As you may

_

(special to thr financial chronicle)

btc

the

to

.

.

Stern, Frank, Meyer
LQS

than this year.

optimistic forecasters. Those
who study population trends see

Herbert Adler Now With
.

than

lion—or

most

previously with Sutro & Co.

avail-

been checked.

expansion programs. Some smaller concerns are
postponing
expansion
outlays,
pending the time when money

,

HILLS, Cal.—Armin

BEVERLY

past

full speed on their

;

Joins Daniel Reeves

of Gross Product.
of Gross Product,

size corporations are going ahead

y

y'77'7.y;i ■'

Slght}° Andicatie this will be re- 30 years seem to indicate that Degener has become affiliated
CUrrently hurting the versed. For this reason, it is our about 10% of our peacetime econ- with Daniel Reeves & Co., 398

250,000 under 1955.

*

I will

industry.

........

way

Washington's

to

the housing situation with

0£

of these:

some

Most

but

II

War

War Agencies. He continued to
advise the government on postwar
problems. During World War I,

belief that present restriction will 0my will go into construction. South Beverly Drive, members of
lessened very soon.
; That is total building after elimi- the New York and Los Angeles
While I am concerned over nating engineering projects such Stock Exchanges. Mr. Degener
credit

record year for

another

construction

has

Hancock

the

Despite r e c e n t slowdown in
There are several reasons for
home building, there are several
downturn in homp building,
important reasons why next year- the principal of which is tightness

a

t

throughouti the nation wilL have

; for many years.

of

Hancock

M

he was awarded the Navy Cross
for his services as a Navy Com-

the

1925^

either Strong
strong

is

h

In

struction

for easier
difficult to pin
do know this. Every

There

j

home was in Scarsdale, N. Y.
1 Mr. Hancock was awarded the
Medal of Merit for his aid during

of potentials

spent for construction

corpo-

'rations. His

equal to 13%% of
the Gross National Product. From
1950 through 1955, new building
construction was maintained at a

some

is

we

1955

started. And

measure

had

a

of

number

demand

will come greatdemand
for
schools, stores,
offices,
utilities,
highways,
churches and the like.

prospects

this

tola

were

home by the early part the Gross National

Thig

National Product is

buildfn2 obscures the fact
SS T ™nmnJ 17fc
have tfoen underbuilding J^md §*£
rate. According to
the- latest
estimates,
builders

of

list

adds
of

a

of

k

ume

the

this

excess

was

director

element that goes into the Gross ratio ranging from 9.5% to 10.9%

for

for

^hurting

currently

Actually

-,'t

1957

down. But

have

1957,

ouUoolTfs ^o^t $^00 billion Sdustrv
today's huL dollar vol'
„r?'

year
"

Starts

construction

indicates

banking activities, he

er

^

Conducted

survey

magazine

a new

As

discussing

s&MrinS CoSS^oifs TO- which^are

*

recent

credit,

Considered

bil¬

in

his

and

investment

full

All

the

indication of what people want.

5-year period.

Decreased Housing

1956—

$1

A

tions

employment and high
this up-grading process
will continue.
'

2,250,000 families are now
seriously considering the purchase

provision, New
receive $60 million

would
a

that

govern-

mental posi-

wages,

about

meet

—

all

indicate

increasing.

ever

"Look"

needs^of individual communi- Qf
of
Under
its

lion

all

at

many

With

trade-in

surge to realize the market poten-

Presi-

the

School Construe-

This fine program had

carefully

York

not

addition to his

;

be passed, after be-

Bill will

about $44 bil¬

about

the revised

under

White Plains,~
N. Y., in his
73rd year. In

market is, saturated.'. We merely 1,330,000 homes
great ^public need, have to consider the population with this surge

proposed

tical snarl.

this

year,

Con-

'/f;

ing temporarily shelved in

re-

mainder
the

tion

rate

School

s

Bill..

is

I

and

dent's

the

at

Eisenhower

y Here

of
con¬

present

dence

Plains

Hospital,

1949, more than half of our
families had total incomes of less
than $3,000 a year; Today, only
about a third are in this bracket,

new

stimulus

schools

White

'-'V

graded into higher income groups,

con-

finding

are

,

In a prosperous economy, there
is the urge for better living from
families
constantly
being
up-

find

This

struction

rec¬

in the

set

"

owners

,

need to supply.

In

to

expected

record.

,y

,

public

Along with

effort

a

causes.

to soar to another4 code formulated by the Federal
is anticipated, re- Housing Administration. The degardless of the outcome of Presi-;dine in new houses-construction

throughout the nation rose
all-time high of $20 billion

an

the

continue

shown

are

from fires, floods and other

year

pre-

.

encouraging housing demand.

.

more

better ; and less expensive
struction materials.

».

'

of

and

materials

0Pr°ducers» National Gypsum

decade, and lists reasons for next year's expected marked
rise over 1956. Critically probes downturn in home building
and concludes deterring elements do not spell a discouraging
outlook in this sector. Presents array of factors indicating

Construction

construction

fabricated

John M. Hancock

Jo^n M. Hancock, a partner in
more for decent living quarters the investment banking firm of
of our present population.
U
Lehman Brothers and a former
In. addition
to
housing
new
advis°r to the United States Govfamilies; we are losing homes at ernment, died
the rate of about 300,000 units a Sept. 25 at

1;v-yyy y.y/.y :.y

are:

By MELVIN H. BAKER*

up

the

of

9

(1290)

Th? Commercial and Financial Chronicle
^.Thursday, September 27,1950

aluminum,
compared
with
pounds in the 1956 models. /"

35
■i

--New Markets

-

By IRWIN IL SUCH*
This

rials picture.

Envisioning $138 billion metalworking sales for 1956 on basis
sales already reported-2«-ftgafnsl last year,

new

Ahead

requirements and to compete
share of the market. SuperT

of 7% increase in

for

Mr. Such

sonic aircraft traveling at
2,000 to

predicts 10% sales iscreate in 1957, or $151 billion,
and, with conth-iiion of this growth rate, sales of $193 billion
Ja4?5er ln analyzing this "era of expansion and prosperity/';
metal working-related

3,000 miles

the

like to

would

X

0

well

as

as

making of them. The time
is not far distant when auto bodies
-will be assembled automatically.
;

,.

,

.

ask

—.

-

....

>

a v.:adding

-

/YAj^

question, then answer it Is metalworking: Steel? Copper? Alumi,num? Machine tools?

-

,

.

.

•.

.

-

--

£

y danger
'was co^pla-./~
cency- I have ^

they've been mistreated"

and that Benson is

To

•

e v e r

t hing

y

from the basic
metals

alone

the

to

components,
machines

that

wind

H.

irwin

wo^mgt

.Ind

u s

country

„raijroads

.

than

the

industries combined: Food
and
and

•coal, chemicals, lumber and fur¬
niture and textiles.

ft

though

closed

were

for

continued

accumulated

result,

steel

five

plants

weeks

this

metalworking

'

plants

full

at

inventories.

metalworking

on

As

sales

a

this

% better than they were
last year.
They'll hit a record
#138 billion.

:

The figure is

more

than

an

holding at 5,000 to

shortage of steel plates will

P

things don't happen but that

pep-

about

and

such

optimism
mism the

.

.

.

of

eqV

equipment shipments
only by capacity to
produce, and this situation is ex-

pected to continue.
i

.

Sales

of

i

the

„

.

,

i

o

12

;

•

.l

Co.,

an

is

equally good

Though farm

year.

equipment

sales

may be up slightly from the $1.4
billion • performance this
year,

a

what

thinking and planning.

These expectations for 1957

are—you can look for

U

c

limb

;iat4,would n?ean they would
to

Now

$151 billion.

let's

happen in

see

what is

likely to

few of the industries
mat are part of
metalworking or
ure markets for its
products. '"%?•
a

J

,

-14.

working sales readily could
$372

billion,
dollars,
<

„

in

terms

of

1955

_T

t*tu

•

.

When

,

•

..

association

your

.

.

met

in

aana
St

< .
U>
'i

ioo

make
vo-ir-

132

tf

JL t'oKor
tmi i
of

dustry

steel

will

xW l be able tional Product
of

steel

•------

•

j

n£ke 114.5
n!s
make

Gustave

L. Levy

The

public

million

of

them

will

l>e made

before the end of
1956, to
put production for the
year at 6
jnillion units.
Output in 1957 is
expected to be 7 million
units.

^Tbe 7M5° minion"1"

It's

services
acivn.es

well before

We

Ane American btocK
nOI1i

raul

i

■

.

Jones

LO»

be
ue

in

1956

al-

are

reach

any

to

know

mainly

this,
the

on

was

BAYTOWN, Texas—Stacy, Bell,

Ernest Peter Abelson has joined
the New York office of Lee Hig£inson Corporation, 40 Wall St.,
New York City, members of the

■—

v-——

—

——

—o

registered representative, it

to

were

but

it

Weeks'

et.

was

y W

and

but

we

never

Calif. Investors Add

prosperity,

rapid change

terrific

competition.

Aluminum,
moved

in
-

for

as

a

has

wpll
well

ac

mnnpr

unri

as
copper
and
as
Consumption of 2 million

,in 1955

r-arV:^h%?t^r^^rtstsLildTn TZ

truckers,

that if the Republicans
get control of the Senate,

is

Bricker

of

Ohio, would-

tion

relating

to

transportation.

t^w^ook ut^S^kehas
Dro.railroad

His

Ohio

law

firm

represents the Pennsylvania RR.
For this reason they are support¬

ing former Secretary of Agricultiiro

fisnrio

WicVard

in

Indiana,

against Senator Homer Car>eh«»rt.

upon Capehart
But they don't
want a Republican Senate.
They
are going all out for the reelection

unfriendly.

of Senator Magnuson of

Washing¬

ton, in his fight against the White

House-sponsored Governor Lang-

car

may

To 18 eXPeC^

in 10 years.

have 80

The

pounds of

the

Washing-

Democratic ticket.

voted

And

the

Republicans grin sheepishly under
the

tongue - lashing
which the
Democrats give them.
It is an interesting state of af¬
fairs but the Republicans, in

opinion,

have got

intimidated

and

to

ipy
to quit being
revive some

memories,

Keith Funsfon Leaves

On European Trip

,

Keith Funston, President of the
New

York

states
m 0 n

Exchange, will
the line United

on

Friday, Sept. 28, for

on

a

th-long

sneaking
and

Stock

Europe

trip

survey

business
ditions

of

and

economic

con¬

the

on

continent.
He

also

plans

to

dis-

with

cuss

business

and

financial lead¬
ers

in

Euro¬

capitals

pean

the New" York

Stock

E

x-

G. Keith Funston

change educa-

tionail
and

p

ANGELES, Calif. —Denis

Coyle,

Nathan

T.

Marshall,
Richard J. Rorick, Anthonie Rijst
and Williard B. Weaver have
.io^ed the staff of California Investors> 3933 wiishire Bouievard.

was he who bottled
up on the
Senate side the Weeks' report.
The truckers, successful busi-

nessmen, might be generally consiaered as being
ordinarily on the
conservative or Republican side,

Not

the

trati

Eisenhower

but

the

business

Adminis-

Federal

Board has stepped
money.

So

nessmen are

by

on

Reserve

the-toes of

tightening

a

up

lot of small busi¬

looking askance

upon
,

John G. Curtis

John G- Curt^ limited partner
E.

-F.

Hutton

&

Company,

passed away on Sept. 18.

mike

thaf

trying to
'is
the
gripes against the Administration

I

am

arwTr°i, con!lnedJ.
®

work

!af1mersi are bad

Midwest

there

is

little

doubt

riculture

is a naughty word
I am
«
W
have
admiration for him. But facts

sS

an
are

facts.

^

The Democrats

seem

to

program
of share

Mr.

Funston

speak

in

the! American
American

is

Paris

Amsterdam

on

to

scheduled
Oct.

4

before

Club

on

• of
Paris; in
Oct. 11 before the

Businessmen's

Club

of

the Netherlands; in Stockholm

on

Oct.

17

before

the

Stockholm

Chamber of Commerce; in London
on
Oct. 25 before the American

Chamber of Commerce.

During

*

'

his

trip Mr. Funston
will visit stock exchanges in Paris,
London, Amsterdam, Brussels,

Stockholm, Copenhagen and Oslo,

i

Sterling Sees. Adds

*be tarrn^rs-

off is difficult to tell except where
they have had dr°ught, but out^^in
the

-

base

it

•

LOS

.,

was double what "

double again

—J 1965

instance,

strong competitor

at

millions of Americans who

sail for

to the

mittee which handles all legisla¬

on

and
,

nations,

into the government

ton, into the fashionable Washington salons* Why the

got

bottled up in
sides of the

(Special to The Financial Chronicle)

and

Adminis-

trations that brought the Commuinto the society of

the

be Chairman of the Senate Inter¬
state and Foreign Commerce Com¬

small

cannot overlook the fact that
it is
also an era of

pansion

is
re¬

,

Senator

as a

ex¬

era

the fact

or

Democratic

of broadening the
ownership. Consid¬
erable interest has been expressed
under the management of IMC.
Earl, lie. Magnuson is now Chairman
abroad Jn
these phases of the
of the Senate Interstate and
Lively.
for¬
.■
eign Commerce Committee and Exchange's work.
Nanthos & Company have opened
a branch office at 400 West Pierce

the firm in Chicago.
an

the

nists

...

both

on

more concern

though,

as

Opens Baytown Branch

billion

1965.

living in

^ °f steel

1957," New York

$500

year,

scars

WS,3 formerly with They don't look

of

tons

11*
 1956,


GNP

«P $17 billion in one

_

'

would
wuuiu

by 1965. But what has
The

likely to

brass.

f orecasting Industry's
bept*

total production

or

and

mm

its

here and

truckers, about as po¬
group in the country,

Capitol.
Df

y-,?®k"?rate of $408 New York Stock Exchange
is at?e annual

million

tons.

1.8

goods

thi

all-new, longer, lower 1957
automobiles are bound to
get a
big reception from the
lilearly

0f
v.-

The

as

left

groups

(

with ^ "«'>»»»»N-Y-

operates at an aver- $500 billion
caPacity in 1957, it happened?

A

fori

hi^'

million tons

;+

t

has

conservative

committees

Doxey-Markley Co.

reach

on

to first base,"It

•

ff-

million, metal-

Gross National Product
Estimates

Steel and Auto Outlook
mun

lation reaches 220

Administration

the truckers
barge lines. The report

are

If this growth
continues, metalorkine
ci aa
working salps will
sales
will
reach
$193
billion by 1960. When our popu-

more

railroads,

only part of the picture in metalworking. This year, each of the
168 million people in the U. S.

10% insales in

a

metalworklng

are

bring about "competition among
the various modes of
carriers," the

SALT LAKE CITY, Utah—Paul
W Jones & Co ih^ been fowned
Nmety-two percent of the execWith offices at 70 East 2!st South
utives reporting to us think 1957
Street to engage in a securities
will be as good as or better than will
account
for
about $825
in business.
Officers are Paul W.
1956.
If
these
expectations
a**e
metalworking sales. The average Jones, President; Robert F.
realized—and experience over the Per person is
accelerating at the Barnes, Vice-President; and Milyears shows that they
invariably rate of $41 a year;
dred B. Jones, Secretary-Treasurare

s

member

r_v„

they

mention them

even
was

comRepublicans,
7v"'::WWheat* they mention-these :"thihgs,f;
Aside from this the Eisenhower are casting aspersions upon the
^

port of 1954 calling for a revision
the Interstate Commerce laws

has been

rorm

Every-

to

4

-

Korean "police
wars
just happened, they explain apugly, and
they've got the Republicans afraid

of

Pmen^

Exchange

them

now
back to the party

go

which

amazed

of both The New York Stock Exchange and The American Stock

1955

disappeared.

why not

based

largest aircraft: announced hv
manufacturers will total $5 billion
pavrnond
c
for 1956, up from $4.9 billion in
•
Koontz. Presi¬
1955.
Orders from the military
dent. Mr. Levy
and the commercial airlines will
make 1957

influenced

are
beefing that the Eisenhower
Administration is railroad minded.
The railroad managers
would be

f[n" record
handling .^de-

vices,

have

there.

5.5.?

limited

are

are

thing is g°ing along all right

tent

of bank vaults,

.

before

with

Drnboid Inc.,
manufacturers

component parts like gears report
heavy backlogs that will carry
1957.

&

next.

:;i,ortabIe,.i,ik^:f-y V

director of

as a

1952

—

™U clients.

Goldman,
Sachs

for Eisenhower in

manism—which

so

s

firm

iiig

Barfero»

num¬

own party
in great numbers.
The unusual to
circumstances
Korea and Tru-' it

clients!'

your

Carlisle

one

day and his pessi¬
They chide the
Republicans for having charged
in 1952 that the Democrats
were
responsible for three wars in our
lifetime — World War I, World

moving back to their

profound
of your

a

fortunes

partner

...

executives

the

The election of Gustave L. Levy,
of the investment bank-

carbuilders.

"pie make them happen, we regu- they still will be short of
Larly ask several thousand metal- and 1954 figures.

toey

voted

^

r

defensive on foreign
Their orators have a de¬

they have in the past. But War II and the
unmistakably, Democrats who action."
These

metal-

'

in

time
in
playing upon
flitting hither and thither,
his "brink of war"
statement, his

bers

up.

Levy Director

tool sales this year will be main-

into

y

con-

The $1 billion pace in machine

over

have

on

company

.

tinue to limit

edu-

cited guess. On the.premise that

working

for

are,

Dulles

vote

tionate

known,

ever

the

lightful

in¬

to

has

on

policy.

in the propor-

as

$700

mean

/

will

cars to the effect

a month in
1956 and will
continue at that rate into 1957. A

o

tilt

year are 7

/

will

business

working

Electrical

most

most

.cummer,

like

in

opening

are

alone

million

gyefflataed fa »57.>Peopl« who mdte:

next

Lvpratps petroleum
nefrnleum
beverages,

Even

items

markets

Atomics

re-

Continued Machine Tool Pace

1955, metalworking did $129
Lillion worth of business~$3 bil-

md
and

the

g 50o

In

Incest

New

Appli-

that

that

Higher Sales Predicted

•

year's.

think

Deliveries of freight

Accounting for 45 lo,

more

last

makers

tend

months perform as well
their obsolete big brothers. *

>

opinion, putting the Republi¬

cans

neon*e

evidently

flashlight batteries

for

in

metal
metal

:,of all manufacturing industries,
it's America's' biggest industry.

!ion

cents worth of

2 million

year.

placement of standard

Classifications

1

matching

ance

Standard .
.>3

.encompasses

r i a

through 38.

are

as

intprp<?fpd

mpn

and Tdvert?s?ng
advertising,

marketing
;

nearly

a

The

Sfft "ft 3S55S CWUSiK
-"".ii",',
m"la " 55S&? oS'taiSrS

Sucn

For

up

take

steel

This year's home appliance sales

and

processes

will

of

tons

that have sales appeal. New tran¬
radios that operate on 50

sistor

friend.

no

it is

me

amazing that the
Democrats, under whose, reign oc-/
curred the greatest
tragedy this
my

.

It's

more.

:

fhf h
at
wif3*u
as they, have .Nixon,
months, they have thought, or at Whether «!m.farmerssare bad -off
the
that their or not the Democrats are? making
nni.mr.-Hancr^r
.......them feel

.

construction, plus the
big road building program that
gets under way next year. Roads

A-.,

,

6 be€1? quite as successful, at

J*"

-

-

,
„

tJEmI•'

lr^c?.ntY made. ^
construction
Jigs will place the side panels, ^visits^a sev-r;
upward to a
record^$48.billion, $4 roof and floQr
in
lace for;.eral Midwestbilhon more than this year. New
weiding, theh he automatically' ?rn -states;
Stamping? housix^ stains prohaWy^^wi^^be
including InT
Bolts and nuts? down to 1 million units compared rem0Ved. Workers will be needed
only to operate controls.
d^na in Uat
Automobiles,
with 1.1 million in 1956 due t
category.
Technicai know-how, imaginaRefrigerators. tighter
There
are
credit.^ But the dr°Ption and knowledge of iriarkets*
Golf clubs?
housing will be offset by
—wr
,
Sa}2s^are being applied to the develop- few- signs, of
It s
all of in
^
ment Of new and better products
complacency.
those and stitutional
_

*

assembly of parts

to the

■

r

First

with-

degrees-^and the materials
already are available.
-*
*
.
Automation is being applied to

industries; indicates extent of develop¬

v-*

hour must

per

of the News

By CARLISLE BARGERON

sand

mental change, competition, and new markets; and refers to
upwardly revised GNP estimatet for l965,
•

a

stand skin temperatures of a thou-.

describes outlook for steel, auto, building and other

author

4

on

is

only part of the mate¬
New alloys are be- '
ing developed to meet strenuous

Editor-in-Chief "Steel Magazine?

V/

« •

ri

From

ft

V- (Special to The Financial
Chronicle)

LOS

ANGELES, Calif.

—

"

Thos.

M.

Anaya, H. Gordon Benson,
Peter E. Donovan, David Kessler,

^Ya^a^"

Psris, ®tid

Sanders have become
with Sterling

^

.

affiha^^
Securities Co., 714

South Spring Street.

Volume 184

Number 5572

...

The Commercial and Financial Chronicle..

(1291)

ices—will

Dollar Bus

continue

to

spring

up

The will ride

more smoothly and
They will be lighter in
years, the railroads will weight
due to the use of new
have
virtually
abandoned
the plastics and still-to-be-discovered
•business of carrying "passengers.!? new metals., They will be faster
More and more people will be and wil1 make more trips.

Industry in

all

.

In

The Unlimited Road Ahead

the

over

countryside.

quietly.

•..;

•

day and age that progress
would be thwarted by an unsound
ern

,;

10

approach in

.

-

at work.

President, The Greyhound Corporation

Greyhound President predicts ''railroadf in

„

ten

.

will

years

haVeT $

virtually abandoned the business of carrying passengers" and
that inter-city bus transportation will be a
billion-dollar-a-year
industry by 1965. Mr. Genet asserts the industry is not subsid¬
ized; applies recommendation of the Cabinet Committee Report

;

,

Transportation, favoring, competition /where titrates

yon
z

:

average

The

workweek

income
will

-

Millions

will

.are y

be

in

•

industry

proper

even

the

sun.

lighf and

more

-Those who

space

jng. on the record. We seek always
improve.*);//v{-

outdoor

* \

With the highways

he

10

from

years

-

as

now,

..

sire

munications is

t

at | its
level

•

r

highest
since

visits

time began.

tired folks

.

ble.

dustries

t

taken

.

\
•

in-:

Most

have

advan- •:

tell

And

are

this

adds

up

to

;

terrific

a

extreme

the job.

of

speed

cities

We

of "

•

travel

considerable

ficiaries

of

sizable

contributions

towards terminal costs and traffic
controls from

municipal
With
number
more

of

cations undoubtedly will be longer,
and workweeks shorter. Bus vaca¬

:

Z"J

/ •/ f.

novelty of .air travel

off,

there

are

a

great

of

places where it is far
expeditious to use our type

service.

more

Federal, county, and

agencies.

the

wearing

,

-

do

Our

elapsed

favorable when

we

time

is

take into

consideration the time to and from

will be the nation's most the airport, and the cost is much
lower. /;;:/,/:// ■
popular form of diversion.
'■;
••
4-'
r;
f
' 'v
All these things will come to
Unlimted Horizon
pass, u we will concentrate our
if
,.«*
wuvvu......
—.
So as we look at the picture
best efforts towards telling one
today, we see unlimited horizons
and all (as modern business does),
whose attainment can be achieved
''
/
of our assets and our contribution,
by a strong and unified industry,
Billion Dollar Industry
and the service thai we can and
at/all times to express
it js my opinion that the bus in- do render. This will establish our willing
themselves forcefully and ably to
dustry will be a billion dollar a\
tions

,

,

•

'

fc.

.

tage of

com-

^he

munications to V

;

on

re¬

everyone from youngsters to old¬

irrefuta¬

are

They are
vacation; They

.

challenge to America's bus in¬
dustry.
/
sters/ from legislators to doctors,
jv.., v.It is a challenge not only to
from business heads to salesmen,
keep: pace
with
our
country's
pWho require movement in order to tremendous
growth, but to forge
conduct their businesses, or enjoy
ahead.

These facts
;

children.

to

.

suspect."

v

distance./ However, I would like
to note that they are the bene¬

United States, says that "America will be a growing demand for,
is; - exciting ;.
because it is - people to relax in vehicles operchanging faster than even Ameri- ated by professional drivers. Va¬
cans

1

between

.

latioij. They are children on their
wa*
are m®n
a*jd
^men« on. their, way to work,
They are mothers and fathers on

com-

'

of

do not

,

terpret

regulation

deny the place of the air4* /
line industry as a proper mode of
they will*
transportation for those who de¬
plus* the f

-

.

pres¬

tion to what is the proper arm of;

•

x

are

charged with the

and

' transportation to

•

.

are

that

transportation for the security and
well being of the
country are
duty-boupd to give full considera¬

existing obstacles.

remove

its

in

remove from our

obstacles

administration

1S the natl°n s safest form of transP°rtati»m But we are not stand-

move.

the

x

east to see the wonders of New improved equipment, many more*
York. They'll go to see the Pacific, millions - of Americans
will go
the.,Atlantic,, the .mountains, and forth on bus trips ?fromi Canada
;
Education and >• communication place1 tHis industry on a
high level our
great national parks.
are
And to Mexico, and New York to- Los
two things that have made'
"Pay As You Go" basis.
millions of them will go in Amer- Angeles. Despite the * addition of
}' gigantic steps forward. The spoken
It should be remembered .ihlat
ica's/buses—from one horizon to new and greatly improved high?nd written word is available to those who.require our service, and the other.
ways, the growth of our popuia^ure peoples : >
•>•. . •.•■;■;■- approximately one million people
.„
^
......
v
"Look" Magazine editor, William tion and the addition of more
i
tnan ever be— *
Will use our facilities this day, are Attwood,
writing of his experi- motor vehicles will continue to
fore, and their
®
h.rP^d o^oss-soction of our POPU"- ences in a three-month tour of the cause traffic congestion, and thereability to in-

its proper

light, and

ently there. :.v->.

living and easy informality. .They'll follow the -dispersing industries. ; They'll come

-

be

yuanxced technology, (When I say
f
buses .will, be safer, I must
fasten: to point put that today
bus transportation,.-according to
National Safety Council records,

south,to chase the

They'll head west for

they will

shorter,

be

on.

all,

path

people will live longer—
/and enjoy retirement longer.
-

of

safer with the introduction of ad-

More

/ They'll go

Most

>

rise,

will

/vacations longer. More people will
be interested, in seeing ; America*

r

compensatory to' intercity bus; fiiideareas- wherebus travel
is far more expeditious than air; and: seeks: a correct-evaluation by regulatory bodies which Would place the
industry in

T;

.

The

,

field of transpor¬

one

tation.
A
correct
evaluation
of
this problem by
regulatory bodies
will
place
our

.

By ARTHUR S. GENET*

11

of

Arthur S. Genet

their;

we

accomplish-

necessities

and

conveniences

of life. As carriers of these
are

*

people,

vital part of transporta-

a

////■/U//4 :'
tion, an integral part of the econrightful place.
ments, their virtues, their probthe nation as a whole, to the users
omy of this country, and we wilt
year
business—more / than twice
lems, and their future. This being be a dominant factor in its future,
and to administrators of our form
its present total—within 10 years." ;
Rail-Air-Bus Competition
the accepted way, it is difficult to
of transportation.
' V
What; does the future hold for Bus routes will grow to an amazI cannot help but notice the exunderstand why there is the great
this industry?
Our great President,- Dwight IX
It is important iii ing total with our use of the new pressions
by
various
thinking
dearth
of
knowledge n that
is
any consideration of the future to and
in
accepting
last
improved
highways
which transportation
people,
that
the Eisenhower,
..everywhere apparent-as concerns
month the Republican renominalook at the growth records of the will allow us to
provide an even railroad industry which played
the intercity bus industry.
■ •

-

^

•

.

>n -

mu

-

irnmxrn

aro

_

J/T Irelatively

.

i

to

tew

peopie

as

th<»v

tney

tion at San Francisco, took occa¬
sion to speak the words of Henrik

c?un*ry and the ecpporuic condi- more comfortable ride and better such an important part in the
tions which surround us, so that time schedules between all cities, early growth of our country, and

Ibsen who

might properly judge our posi- Whereas, we as an industry today which makes sizable contributions
tion, and our contribution, in the serve I exclusively some - 50,000 to the welfare and security of this
pie,
use; nee(i, and require our years to come.
■
communities, that figure will be nation, should now be restricted
service
than any other form of ,/
doubled within thP npvt 1ft
to the
i

<

we

More peo-

industry.

our

concern

j

.

^

vpnr*

Country's Growth Picture

-.

ice

provided better by .us "*an

is

jn

^he

1945

Gr0ss

unquestionably,

National

win

be

improved

equipment

our

Many

will

be

volume

with great joy
wiU,
jv^

the

pre^s, newspape^, and other
W' pSif

EnSotL

fbmilh

Wp

of

five times the number

four

nr

of arrivals

and departures, and at hours that
suit public convenience.
Short- and Long-IIaul Growth

it

While

is

the

that

true

total

people carried in pub¬
lic transportation percentagewise
is less than in the peak years imnumber of

/

mediately following World War II,
the
diversion of our short-haul

*

*

''

travelers

the

to

/ bile has reached the
point that
growth of
is

ness

it
our

automo-

private

lowest
and: the
busi¬

very

go,

can

longer-haul

evident

as

our

month

by

month statistics become available.
/

Revenues

*

ters

special services—

package express and charincreasing each year.

tours,
;

from

are

These basic facts of transporta¬

tion

to a
traveling

large segment of the
public, but are generally unrecog¬
nized

by those Who regulate Our
industry: i.e., the Interstate Com¬
merce Commission, the State reg¬
ulatory bodies, and
the taxing
As

authorities.
the

an

illustration

of

misunderstandings that exist,

have insisted, and it has
gone unchallenged, that we are a
subsidized industry. Nothing could
many

be

further

fuel

from

the

truth.

that

we

pay,

taxes

times

The
many

duplicated because of their

assessed on sales and use
plus the unfair assessment
State
license tags,
plus the

being

bases,
for

so-called

third

structure

with which all of you are

taxes,

familiar,

N*An

address

by

Mr.

Association

eratrrr'

A —■Mai

of

Genet

before the
Motor Bus Op-

Convention,

Sept. 12, 1956.



Chicago.

league with

in America's bus industry
surely in the right—for we are
league with a wondrous and

are

struction.

tually picture-windows

nearly $365 billion. The current

.

:

'

The buses will be viron

staff of Boren

the transportation of pen

& Co., 9640 Santa

Monica Boulevard.

It is unthinkable in this

wheels.

:

figure of almost $388 billion is an
increase of 85% over 1946, and an
increase of almost $23 billion over
the year 1953.

...

.

This announcement is not

dent's Material Policy

that

say

this

is

studies

These
inr7e.

.

J

w;^/■.:/:/://:

the

conclude

start.

that

$4,000,000

by

in

on

Southern Nevada Power Co.
First Mortgage

a

There

/

are

..

many

other

■

<

reasons

Dated

Due September 1, 1986

September 1, 1956

Federal

Government

has

Price 101% a?id accrued interest \

already embarked on a National
Highway Building program that,
of

cost

a

duce

$33

scribe

billion

miles

41,000

highways.

of

will

pro¬

brand

new

No superlative

the

can

de¬

program's

magnitude,
its
importance to the country's
economy—or, more personally, the
influence

bus

Bonds, Series C Due 1986
(5H%)
I
'

confident look ahead.

a

The

at

:

the

tremendous growth in cor¬
porate products by 1965—in only

for

\

,,

Economic Report, U. S. Congress,
agrees with these studies and pre¬

nine years.

;•/:/' ii

Commission,

only

\®nl.y 19. y£ar®. a^ay!7T
?
? Hoko
double what itCommittee
was in 1950.
The Joint
dicts

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

an

The

Yet, several studies, outstanding
among them
one
by the Presi¬

it

will

exert

the

upon

The

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

industry. It is a public pro¬
that staggers
the
imagi¬

gram

nation.
the

In
be

year,

born
our

ahead, there will
Americans,
too.
Last
over
four
million
newly
years

HALSEY, STUART &, CO. Inc.

HORNBLOWER & WEEKS

WILLIAM R. STAATS & CO.

more

youngsters
nation's

the experts
will
years

National

-

to

not only unknown

are

t

In 1953 the "United States News
and World Report" tells us the

the u; S. Government spends) was
y $209 billion,

dai

o

:

Gross National Product had risen

M^ts ^nd equipment, and what

f

>.

by exciting new engines called Cabinet Comrnittee Report in
that-are already undergoing se-,.on
Transportation, particularly; exciting future. V
// //^'/z
";v;
1'
cret'work tests here apd 'abroad., .that part which recommends that
They will be more cdlorful with they be allowed to compete with
Boren Adds to Staff
new type dyesj paints, and metals, other
forms, of
transportation
(Special to The Pinancial Chronicle)
adding brilliance to our highways: where the rates are compensatory.
BEVERLY HILLS, Calif.—Shel¬
Unquestionably, more glass than This same good basic American
don Graff has been added to the
ever will be used in their con- philosophy should hold true in

12SASS people spend for goods and serycountry
nave^no otner xorm ices, what l?us;nesa spends foj? new

in our

:

/

is in the right

We

so-

♦■y an^-ftvetbn,°i^d0:Product (the total of what aI1 th® powered
-

wrote:

man

who is most clearly in
the future."

hauling of heavy density
freight.
Railroads have

embraced
wtiwnvcu

once

"I hold that

^

rolls.

predict

reach

178

In
our

added
five

to

—

will

shift.

needing

new

be

a

New

HILL RICHARDS &, CO.

,

McMASTER HUTCHINSON &. CO.

MULLANEY, WELLS

COMPANY

years

population

million

SHEARSON, HAMMILL&CO.

(INCORPORATED)

in

10

RAFFENSPERGER, HUGHES & CO.
ARTHUR

continued

sub¬

communities—

transportation

serv-

.

J. S. STRAUSS & CO.

INCORPORATED

190 million.

There

urban

were

FIRST CALIFORNIA COMPANY

September 24, 1956.

L. WRIGHT & CO.,

INC.

THOMAS &. COMPANY

12

The Commercial and Financial Chronicle

(1292)

•further violations of international
■''■

.

In the Name of Nationalization

the

of

broader*,

violations

of California

,

third

between

be

can

consequences

with

.

sin¬

a

involved, and the peoples of

;

sumed

Oil y

.that

stockholders

will

be

Western Europe con¬
2.5 million; barrels

tries

nearly

often

more

have

the

than

do

not

largely

But* now/

this

As I

violation

Vof

properly compensated. But actually, the under-developed coun-

,

Consumption

Last year,

Mr. Petersen advocates
strong stand be taken against arbitrary and unilateral abroga¬
tions, and correct labeling of nationalization when used as

European

-

of danger.

True
enough,^ the promise is
usually made after an expropria-

tion

Growing

expropriating countries themselves.

In. fact, the

progress—are all the product
income from oil operations.

have. '

;

well-being.

been

based.

They

Americans

and the American love of freedom
and belief in the individual. Perhaps most important of all,; they
have been given the hope that
they and their children can have
a better life than preceding gen¬
orations have had.

present prosperity of many coun-

episode I mentioned,

gle, unilateral contract abrogation

areas;

have

for their economic progr-

and

Thursday, September 27,1956

have gotten to know

peoples of the oil-produc-

revenues

classic example of the far-

reaching
can

Too V

ing' countries, themselves. They
of have/grown dependent upon oil

sanc¬

basis for trust

no

nations, discourages aid to under-developed

hurts millions with direct savings

a

Hard-Hit,

it
concerns
a
heavily tries—the great strides they have'
in
social \and
economic
trade route, provides us taken

traveled
with

international irre¬

encourage

sponsibility to point where there

contract

the

ress

The

Oil bead ponders growing immoral acceptance of •'the concept
that a nation's sovereignty allows it to abrogate an interna¬
tional contract whenever it finds it expedient to do so"; notes
consequences

be

tity.

Standard Oil Company

far-reaching

implications,
of

Countries

Particularly bard-hit, .too, would

Against that background, let me
consider now the impact, and some

because

such

Oil

'•?'£;■

these

By T. S. PETER SEN
President,

faith,

v.

.

is

progress

in

see

it/the instances
international con-

of

tracts between governments and
private business are generally
.bound to weaken "the"confidence
world investors. These investors cannot .for long be expected
to

not

their

pour

skills,, knowledge

and capital into-works that are
payriicnt. An4 how .can compen- - subject to* seizure
soon as the
sation—assuming it is paid at all 'enterprises-reach the paying stage
came
to Europe by way of this
—justify the breach of the original- anc* long before the contracts have
euphemism for breach of contract.
trade route. While Europe's econ¬ solemn
agreement? Also, in the reached their legal termination,
begin by going back tition, the meaning of the word omy at the moment still remains case I've been citing, who is to
Unfortupately/it has been all
of crude oil a day; About L3 miK
lion—better than half the total-

to make

mcmey

proper

•

.

I'd
•

j

over

like to
recent

history and briefly

"nationalization"
is
being
im¬
properly broadened to include the
unilateral abrogation of contracts.

re-

viewing three breaches of inter*
national

faith,

and what imoact
".they are hav¬

ing

s a n c

t i t y

t h

of

and

contracts
•

resultant

e

economic

curity

Yet it should
and

the

upon

se-

and

such

mean no

primarily a cpal economy* there is
minimizing the area's.growing
dependency on petroleum. Where
coal today supplies, about 75% of
Europe's energy .needs, it's I ex¬
pected that ip/20 ypars coal will

compensate European consumers; too evident j that so-called "j ust
apd oil producers, if their. trade compensation," even if it - can be

no

thing;

is disrupted.

.

This

;

time the term is so re¬
peated it is to everyone's ^mis¬
understanding of the basic prin¬ ;be able-to provide only half 'of
the energy and oil will have to
ciples at issue.
'
<
every

>
/
made promptly, rarely, if ever; is
interdependence adequate to indemnify, the inves-

typical

between

-

briyers a.nd

sellers—be-

tor for either the present value/of

tween

foreign, investors ^and, the, his holdings or, more particularly,
— .points'
for What the holdings might have
up the fact that,' in our *complex earned' for him
during the anticiLet me elaborate on this point: provide the rest.
; world of today,.no nation has the .pated.lifevof the contract... In* efObviously then, any interna¬ moral right to violate agreements fectK the. foreign investor who does
First, -keep in mind that the
t e r m "nationalization"
initially tional development- iwhich^ might ;it .has entered: intt> freely, in the a good job -has no/safeguard for
came
into common usage after cut off or diminish the ''flow-of exercise of its sovereignty. Abro- his investment, othef* ,than: his jown
World War II, when the British i! oil to Europe isviewed -with cop-, gation; of
contract .between .'an ;faith
in-the
government
with
Labor Government came to power /siderable alarm by all the'coun-' investor, find
a
nation
and nationalized several of Eng¬ tries of Europe. New"*routes would purely national mdtter. It is.com-r think" -what
chaos; would: ensue
land's industries. While many peo¬ have to be found for the^shipmenf pletely
internatiorialin
every in; the .United/ States
if freely
countries of .investment

,

•

.

welfare of the

.'Free World.
;;

The first of
e se
is the

1t h

1

expropriation
•; of foreign oil
.holdings by
of

one

the

countries
T.

S.

of

hem i-

our

Petersen

sohere back in
the latter

1930's.

despite the
tual

a

This

took

existence

of

place

contrac-

which

g r e e m e n t s

were

-

'thought to protect
panies'interests.

-

Without

the
*

oil
(

attempting

to

into

go

the merits of either side's

-

com-

at
this late date, the
primary signif¬
icance of this occurrence for us
that it established a serious and
case

<'far-reaching

precedent.
It is a
precedent that is coming back to

-

-

haunt

us

today, cloaked in

a

new

garment which many people

con-

veniently — and incorrectly — are
labeling with thef.word]ynatiortalization."

■

'

■

JA> > VT f

4,

Nationalization

vs.

\

VJ'jV..

■.,■■■■

Expropriation

This term "nationalization"

was

-

.

ple in

America—and

in England of half of Europe's, oil require-, sense, v ^
v signed- contracts,
engaged in for
not have been in merits, and the countries, .there ^
: v':'*mutual. benefit, stood only upon
l Affects
Under-Developed Areas
sympathy with this action, there would also. have to turn to sub-the immediate
expediency of the
was no question about its legality;
stitute sources of oil supply in
Tn;atfditibn to the potential-vie-.'parties involved.' - ;
v
* ;
It was a case pf a government, ether,
parts of the world,
' *•, tims I have just cited, these viola- ^ With all this in
mind, it is only
elected by a democratic majority,
international; contracts reasonable
The upshot would be that cost tions : of
to expect that investors
have tragic
plotting its own economic course. of
forebodings ;for yet jn important
Europe's oil would become sub¬
foreign projects will
There was no violation of any
another group. This is comprised
proceed with great caution in the
stantially higher, a serious dollar
contractual obligation. The private
of the peoples of
drain would occur,, and Europe's
underdeveloped future/ No matter how attractive
owners of the nationalized indus¬
the world, the
economic progress would be dealt •countries all around
potential may appear, no mat-.
tries were properly compensated
a heavy blow. •
*
•
*" Who look to the more prosperous ter how Torward looking-rthe inat the time their properties were
nations for technical and financial
vestor may . be in seeking, means
Western Europe obviously would
taken over. .•
assistance in developing their re-,
to expand the world's use of its
be hardest hit, but the people
That was a

well—may

as

-

„

legitimate Nationali¬
zation, as41 saw it—and I'm sure
most

others

it—the

saw

case

of

a

-

.

sources-

:

'

;»
;

!

sources.

Nevertheless,

without

were

regard

to

the

.

taken

the

exercising
its

over

its

sovereignty

its'

citizens,

own

own

property, for what its- government
good. But since that time, the term

their raw'; materials for
Europe's capital goods and con¬

"nationalization"

sumer

believed

was

<

for

the
has

common

been

im¬

/ trading

properly invoked to rationalize
and
dignify simple acts of bad

products.

Most

recently,

there

has

has every

property

been

yet another

precedent-setting ex¬
propriation, this time involving a

4

waterway

which

upon

a

great

deal of the world's commerce has

depended.
•

This act, too, is. being
described as a "na¬
tionalization." And more so than

incorrectly
of

any

the

similar

events

that

right to take the private
of its own citizens to

the

serve

does

government

tion"

not

must

be

ments
I

are

when

holdings

solemn

•

.

,

;

challenge the
use of the word
"nationalization"?
Because the word is
being employed to cloak with sovereignty
and national pride an act that is
nothing more than the violation of
a binding contract.
Through repe¬
*An

the

address

New

by

Mr.

Petersen

Mexico

before

Petroleum
Industries
Committee, Albuquerque, Sept. 17, 1956.




most

cannot

tion

in

one

that

of

the

If

those

from

ex-

given period by
agreements
between the

governments
as

we

you

have been sup¬

protected

peoples.

Why should

read

you

in

nationalized.

propriatipn for

Malapropism

that

reason,

end of the war, their "development
riverseas havp heen pv,

^

our^ountnr

affairs of

t'
'I
. "*
I canhot emphasize, enough what
a'retardment of the international
^

a

and

the

investors—

such

holdings are—they
subject to nationaliza¬

be

the proper sense.

While we may all be for the
underdog—and Americans partic¬
ularly sympathize with the patri¬
otic aspirations of all peoples—we
cannot condone any act of expro¬

which

priation
fabric
ments.

of

To

tears

down

international
do

so

is

to

the

agrees

encourage

.

.

flow of bfains and capital Alight

times

kinds^
icinds ot

byn the contribution playcd in the industriai developaSfvities
ment o£ our country, particularly
-n

nroeressive activities.
progressive

Because

I

am

know best what

an

oil

^nan,

I

industry has

our

done.

Oil companies iri .the last
decades-and before-have

made; the most substantial of all
American

private

abroad. Oil

theni

hear it said,
"Oh, there's only four or five big
companies over there, they can

F?ee wLld In^eneral

mta°

of them-has

Middle

We

believe that Ameria

»'g°-le
f the least moment, you are all aware of the
"J
iM this reservoir; and not .v.re1
k
roie
wliieh ,Brittoh capital

our

East.

I

great reservoir of iree World in genela1'
good will in the minds of people,; Aided U,. S.. A..
Development,
elsewhere
in
this
world.
Many, - To
g0
back in history for -a

tendency to minimize the ex¬
tent of American holdings in the
a

feel,
enjoy

cans

men

country

s

investments

have been among

best ambassadors of

good will, because they took with
a

multitude

opening

^he

and

have

rapidly

as

latter

half

of

as

the

the first part

had

Man

not

of

remember

in

the West. Of course,
so did

profited—but

Would

war(j

it

up

British

we

New

be^n

m0ved

we

for¬

did in the

19th century
of the 20th

k

for

such

help?
men here
today can
the stories of hardship

Me3tic0

and

of

oth^ part^

good things of tbe Southwest
told
by your
many.
These fathers
and
grandfathers.
But,
Americans have consistently recthey worked hard and honored
afford to stand the loss."
'
ognized the right of their host
fhe contracts into which they had
The facts are that there are 28 countries to maintain
their^ own entered and^ all of us are proud
companies operating over there— political and cultural self-deter- of thertl that they did so
do
minatiqns
and to^ add
to their.
not all of them big,
not recan any instance in which
incidentally.
When
you
add up their direct ways of life only what they have the terms of investments and conchosen to accept.
;stockholders, and the clients of
tracts were abrogated merely beAll these Americans ^
have taken
investment trusts, foundations and
cause fbey represented
money put
as
been
the oil, which,
insurance companies which have away
up
by S0me0ne outside of the
substantial holdings in these oil lying underground was useless to
States>
.
:
these peoples until it was devel- f •
■
firms, you get something like
t
- The British and other foreigners
three or four million people whose oped
'-invested their money in the con'savings have gone toward the de¬
Provides Progress and Friends
fidence that Americans would upvelopment of this foreign oil.
The skills
and
knowledge the hold their contractual obligations,
Then total up the eight or 10 oil men have
painstakingly built * submit that our economic demillion dependents
of these in¬ up in a century of the develop- velopment would have been set

for

the

benefit

of

^

„

foreign

well-being and security of all free

A

mask

will not be misled and inclined to

posedly
holdings

economic

to

in general.

hope, for this

overseas

the

used

irresponsibil¬
ity,
acts
which
destroy
the
integrity of international agree¬

sympathize

to

thing

same

acts of international

countries

threat

the

Our

in this country when it condemns
property for a highway right-ofway.
But the term "nationaliza¬

have

serious

welfare.

common

an

preceded
it, this case is
bringing home to us the point that
expropriation, even disguised
as
"nationalization," posed a very

of^resources,

nroiects

forSgn

Abroad

com¬

which both parties had
freely en¬
tered into many years before.

standards

Minimizing U. S. Oil Holdings

faith.

over,

contract

their

.

nation

commonly applied to the ex¬
In
the
other episodes
I have
Likewise, in our own country
propriation I just mentioned/The cited# the governments concerned .there's an
extremely large seg-v
word
"expropriation" itself was -freely centered into contracts'fc# vment of the public which has a
considered an accurate and offi¬ which—in
effect—they agreed to Very personal stake in this situa¬
cial description of the action. But
give up their right of nationaliza¬ tion^
These are the millions of
several years ago — in an eastern
tion for a given period of time.
direct and indirect shareholders
hemisphere country — a similar Thfs was the guarantee they
gave in oil companies with foreign in¬
episode took place. This time, the the
companies as an inducement terests, and the millions of others
chosen description was "nationalifor
makingsubstantial
invest¬ who are the dependents of these
zation," even though, again, it was ments. But after the investments
shareholders.
a
simple case of abrogation of a had been made, the contracts were
contract.
This is a point which I don't,
abrogated. What was this, if not
believe is appreciated enough, and
The company involved had an
bad faith?
:
which can certainly stand ampli¬
I want to doubly emphasize this
agreement with the government
to develop the country's oil repoint I've been making. A nation fication here. There seems j to be
pany's holdings

'

and

he is going to tend to
only victims. The people of India livhig^"";^ !'• hold back /when' he; has reason to
No one can really measure the.
suspect that he will be turned out
and the Far East, for • instance,
good that American businessmen once his venture
would also be affected, because so*
begins to show
have done abroad. .But since the
a measure of profit.
much of their welfare depends on
.
*
i *
there would by no means be the

not

.j

.

vestors.

I

submit this all adds up

ment
of
their
industry
in the
bigger group than just United States have been shared
"a few big companies," which sup¬
freely. The income thus provided
posedly can easily stand the loss. has built up the health of /people

to

a

much

ri°usly

...

,

_

hampered

.

if

we

kePt our woi'd.

hadn't
.

Then, around about 1900, Americans themselves had accumulated
If there were any loss, it would be in desert and
jungle and they live enough capital so that they were
stood by millions of Americans
longer.
Their opportunities for in a position to return the favor
If there were any loss, it would economic
improvement have been they had received and to begin
not
be absorbed
by some tight advanced immeasurably.
They investing directly in foreign enlittle
group
of
millionaires — have been taught to use some of terpris.es.
Since then, these priwhich simply
doesn't exist—but the " complicated machines upon vate American investments abroad
by

you

.and

by

me,

families and friends.

.and

by

our

which

the

perity and

Western

physical

World's

pros-

advancement

-

have

grown

billion.

steadily to almost $30

The

results

have

been

Volume 184

(1293)

overwhelmingly

felt

on the good side,
only for tne people we have

Free World Most Curb Inflation

helped, but for qurselvfes.Vv*fl. within-countries that depend on"
5*r'fv

i

.

Cannot Live

These
and

of
-.

are

affairs.

have

which these

live

alone

that

keeper when
Our

are

been

I

countries
but

in

to

at

of

some

a

States

;

Advocates

Strong

Stand

general directions:
First> our own country .and the

Ibn.Saud

for

Saudi

tne

the

all

concession,
United

..V.',

But,

We

.con-

of

Finance

somehow

together that much
it to him as we
I am sure that
this instance of scrupulous adherence
to an agreement did not go

-seem

,

Repudiate Nationalization Concept

faith
Europe

i®,

,:SeC0?<"y' theJesP°"^le ^-

tion

had

oil

the

to

come

for

mcnt

the

not

time

mo-

have

con-

propitious

solemn contract \yhanfvei; it ; ^

;®,

nf

u^p

harH-heaHeH

Rn 1

would

the

sidered

propitious

larec-scalo

Fnmnp

in

Euroneans

of

had

.

our

pend

adequate

upon

balance

to

task

expedient to do; so. If
11 * v",
j
r
J\u
every international agreement is demands for defense, high
to exist only s0 long as either sumption, and for further

to

highest level in our history. Na¬
production is establishing

*

of

cruelest form

the

is

the

can

uninterrupted

world, and the
flow of that oil.
;

theft

been my experience

has

It

everywhere

people

to

want

that
co-

with each other when
they can feel confident that the
operate

benefits to be obtained from such

cooperation will be mutual. Fur-

each working example

thermore,
of

and

trust

adds

faith

whole, just as each
In the business

dation

trust

of

the

^re

the |nt lirnnediate" eain

nourishing

belief

that

tracts

will

be

and

agreements

con-

When

honored.

a

i

A*lri«

p

.to^ste^r
difticult and

savjng

U.

seat
ner

anyone

believe that we oil
do not have to»take a back
to any industry in the man¬

be

in which we keep our agree¬

ments, at home and abroad.
be to the great and

It will

long-

lasting benefit of the whole world
if faith in
can

There

is

^moneyv
•me and
No
can

the sanctity of contracts

maintained

be

iar

more

and

fostered.

this

to

only

.a

alone

group,

no

ia- this

the

strong and

a

re¬

in the world, must
is

This

forward.

not

duty to ourselves; it is an

a

,

in these meetings will

views

give

all greater courage and inspi¬
ration in our essential tasks, and

us

that the Fund and Bank

will

effective

render

tinue

to

many

key points.

con¬

aid

*

at
a

and; investment- in
Howard M. Palmer Opens

of

(Special to The Financial Chronicle)

grow-

w

contribution good

an important

Calif.—How¬

ANGELES,

LOS

.

offices
Boule¬

ard M. Palmer has opened
at

North

351

vard,

to

Cienega

La

in

engage

business.

■

$3,600,000

a

securities

"■■■

■

•

offices at 213

Virginian Railway Company
Equipment Trust, Series E ;;

So.
.

X

X

3

' '

7-fj

7.-

i.

ZA% Equipment
*

' i j

;

v

t

■

i

f

»

t (

.

'•«

t

...

,

•

,

Trust Certificates

(Philadelphia Plan)

...

;

v

!

BEVERLY

HILLS, Calif. —Al¬
len B. Bletz is conducting a secu-

V

•

To

mature

$240,000 annually

October 1, 1957 to 1971, inclusive

'

.

rities business from offices at 9716
To be

Santa Monica. He was formerly
with Lloyd Arnold & Co.
•
7

than

:A**

*

nation,
of

r;

.
•
(Special to the financial chronicle). •

SAN

world

FRANCISCO, ^Calif.

Charles

Henry-has opened

P.

guaranteed unconditionally as to payment of principal and
by The Virginian Railway Co nfpany.

dividends by endorsement
.

•.

',Certificates due 1957 to 1967, inclusive

';

Henry «Jpens

r

lot of other people^ t-

no

man,

live

as

•

nnnni^ on^ g
g
the ing populations.
» is far too liitie realized what
-

(Special to The Financial Chronicle)

far more in it for you and
for

carried

econ¬

The

Jack C.
securities

—

a

A. B. Bletz Opens

v,

dollar

S.

dynamic U. S.

also maintaining

liable currency

enterprise, we cannot

productive

ts

/VIKin. v/pcnSr.

I

provides.
men

gives

a

Hno

EVANSVILLE, Inc.
Atkin is engaging in

of you business from
a lease, he feels confident that you
Spring Street,
will carry it out as the contract

land-owner

is high and
growing., This job of

omy,-while

ent immediate gain., c.
> A
cop»We here have a special trusteeeco- ship, additionally, because infla-

m ^wing-ami ^namic
the whirlpool of inflatiori and the economies from whic!h w:ti come
rocks of deflation.
Sa .darSf
1 i^ne for

world, the founand faith is the

living
narrow

JS?
nXc IL
lo la^fficelon|-t7rm

it.

from

tracts

to

violation de-

of

very

Confidence
are

_

moral obligation to uphold the
integrity of international agreements, and, needless to say, the
.
United States owes a special obli♦statement of Mr. Humphrey at
gation. That obligation is to assert world leadership in affirming Washington, D. c., Sept. 24, 19S6.
that there is still progress to be
made in this world through agreements founded on nothing more
solid than the word and integrity
of responsible people,

a

savings

^r^ghoi^^iheS^Iirid'^hwe':'''a;o^n^^.nJn®rKW
the

cost

within

moved

range.

with

brings

records.: The

new

has

such

gov e r n rft e n

monetary

Z

We have

able resources,

Responsible

allowed

tional

This is a

be tween nations.
we

and

problems; we have had substantial
success. * Employment
is at the

tion^ and to invest funds; Without
to^ys^^^ntryu Jo
save

best

policies,

to operate for the public
good.; We can fairly report that
although we are not" free from

party finds^ it convenient, then nomic development, against availthere can be no basis for trust
Wa havp
tn ofppr
as

economic

and

you, our

\few

finds

of

sources

7

Responsibilities

contribution to all of
friends from abroad.
Many of you have similar prob¬
selves- Inflation results in the de- lems. We have been pleased to see
struction of the value
so
many of the free world econ¬
omies grow and strengthen during
KJ?
and othere who
the past year. It is our hope and
wHUng
belief
that
the
interchange
of
good for unreal but falsely appar-

arise from the

^^ources i^each

,oen1twoc

they not believed they could de¬

.•V.\

important

country. The question, in «'fe*
demonstrated when they began tionsofthe world should repudi- words,
ords, is how to finance both
is how to finance both
their .present trend toward an oiH?*_the c°neeP Jhah a jiattorCs needed defense, and high prospereconorny. True, the course of iimei#ovei;e*£n*y allows; it
abrogate
without inflation.
countries

the

which

...

Met

Has

restraints

the

it grave
instability. It
destroys not only the value of
savings but also confidence, and
security, and social values. Infla¬

Geo. Humpnrey

Tliese problems

European Oil Dependence

the future.

Inflation

®hecS on..the than those .of .
short-sighted nationalism depression-or war. They are, nevthat cooperation,
threatens international unity ertheless, very real.
and

It has been the basis of the

continued

and

is

£7

our

social injustices and

J?™1

of individuals.

and groups

the trustees for

are

peo-

very

are

sobering responsibility and trus¬
teeship.; The average citizen can¬
not,
defend
himself
a'gainst the
terrible hardships of inflation. V

f®*™, a"d

individuals

between

our

discharge
wisely this " trusteeship and this
responsibility, We have' brought
the budget into balance. We have
freed the economy from artificial

and

wages

provide for

,

.

confidence

the

of

have tried to continue to

the value of
salaries, their
savings accounts, their pensions
and
insurance: policies, and the
other investments they make to

their

had agreed to do;

broader thing than the feeling of

I:

•

S.

nancial

for

responsible

are

n

may

get

future

their money-. We- policy

renegotiate their contracts in. good. that peace and
as-changing circumstances prosperity

and paid

money

In

of

We in the United States, re¬
; sponsible for the government's fi¬

"

to the
We
-\%t*

which

inflation.

trustees

the

and

:

U.

a

fpeeM ^rT/sZd
respoZbility

faith

other

or

might

Ple-;

Central

and

our

and prosperity of our peo-

peace

gathered here—

who' are

Ministers

ii

jjcav-c,

require. By and large Amer-yshould cause
lean business has followed this trouble for Fi- '
precept, and I can cite the Ameri-^nance Miiiiscan oil c o m p a n i e s operating t ters and Cenabroad
as -good
examples.;- It. t r a X Bank
unnoticed by King Ibn Saud and means, too, that the host',coun-7 Gove r n o r s.
that..it contributed to the trust ne tries must protect the interests ,^ These - present ,
and his successor, King Saud, have foreign
investors ;within ; their; troub 1 e& I o f. >
displayed in us.
bounaaries;' submit 1 disputes to'ours are much
However
trust can b« a much negotiation or arbitration, if nec- more bearable
oid

we

people

A Trustee Responsibility

.

which

up

trusteeship

growth

letter of their agreements, and to surprising

in the
ordered

had^ been

States

closed.

tion;to carry out the spirit and

Arabian

banks

..

built

avoid
the

are

We

The basic problems

•■•

,

,

..

we

continued

which
..

this

countries.

lot les* trouble

6uuiuiin,v,i,i,v

.»,fuv,wuw

have

the

and money.

mu-

-;

is

have—to

we

and maintains government financial leaders have

^ Problems Stemming From

me

easily;

This

responsibility to preserve value of the people's work
Asserts United States has met its responsibilities
by balancing the budget, freeing economy from artificial
restraints, and allowing monetary policy to operate for public
T'-""
good—resulting in record employment and prosperity.
•

be¬

save,

our

"trustee"

■

greatest
to

countries.

for defense,

of

;

.

high consumption, and economic development against available
resources;

the

progress*

incentive

peoples' savings over
the years—large and small savings

'

I should like to suggest that to
the answer seems to lie in two

money,

to balance demands

peace,

of

one

an

alike—which

prosperity and

of

soundness

economic
is

and it is

times it

the

it

Humphrey notes "very real" worldwide problems arising

-other nations of tne Free World. fronCusIn mostoi our countries
which are par ies to
6
ic and linaneiai
have-kept at home what monejt tracts snouid take a*strong stand problems arisine—-hanmlv—out. of

because

Would have been

Fund and

is

to

cause

of the International Monetary

Governor

from

tions.

have not.
Nor'have these funds for foreign
come

.

,

Mr.

But, we all know they are;

in some

we

development always

can

the

to

Confidence in the value

money

spurs

Secretary of the Treasury

International Bank for the United

here will be quick to agree that
there are no fast and easy solu-

proud to
the leaders

made

others

many

;

us

am

True,

have

we

of

brother's
help him out.

of

one

going'abroad.

condi-

of, depressed

nation.

of

By HON. GEORGE M. HUMPHREY*

:.

not, that the world's problems are
our problems.
i
v How should we proceed?
All of

can-

world

the"

-r-'.-'ri";','H
Perhaps such things, seem. far

away.

home

we

in

felt

be

foreign investors.•*

our

we can

company,

has

say,

this

in

we

that

will

trust—makes
a

proved through the assistance of ?.

investments
come

the realization

ours;

in

have

^

tions abroad, whicn might be im-^

cornerstones

leadership in world

financed

with
not

continuation

been

The Americans who have

ventures

It

welfare.

abroad to help operate the i

gone

"

^

prosperity elsewhere for their own

^

>

have

the

of

one

nation's

our

Alone

investments

which people

money—money

European allies. ' It will be
in the slowing of-progress

our

not

'=■

13

The Commercial and Financial Chronicle

Number 5572

. ,

--

.

iSj.-Publicly offered to yield 3.70%

■
—

"

of-

"

V

subject to authorization by the Interstate Commerce Commission. \
Offering Circular may be obtained m any State in which this announcement is cintdatedfrom.only^ •-^';
cf the undersigned and other dealers as may.-lawfully qffer these securities) in such. State.' ;

^ h Issuance and sale of these Certificates are
The
'

such

peoples
suffer

of

who

them.

solemn,

can

least afford

Each such

contiactual

to

__

^

violation;;^

obligation,

,

•

i

\r

c*i

•

i

i

1-1

-

,

Paul^V.r>5hields Elected-

..J'poiit v-' fiKipHc

spnion

s.

f

7^

hartnor

HALSEY, STUART 4 CO, Incc

-•

1

;
•'

i
S

\
,7

DICK

A

MERLE-SMI

: R.
t^

»^

•

"i,,
^

BAXTER,
v

tional anarchy is to take place, the

impact^ must
^

Corporation has been formed with

be felt every where; offices




Boston Road to t
securities " business.

at i; 3445

It will be-felt in the weakening of engage in

a

I

7

.

;

* ■'*'

•' u jw ^

& CO.
""

*

*'4

"t GREGORY

WM. E. FOLLCCK

'"i*/

*

"

SONS

A COj, INC.

■tNcofwtmi. ?s-r-; v,

k'%

.^.destroyed,- if/, a 'sort-:of interna^*- BRONX, ^ TPMHandy Finance r:

COMPAMY

if

FREEMAN & COMPANY

WILLIAMS & CO.

THE: ILLINOIS

W. PRESSPRICH

W

SH EARSON, H AM

'September 25/195'i.

Ml LL A CO.

;

McMASTER HUTCHINSON A

CO.[

.

m

,

d.'

14

(1294)

The Commercial and Financial Chronicle

The payments on
principal in each of the first three years
larger than when the installments are equal. Because of this

...

Thursday, September 27,1956

.

Machine Tool

Purchasing Costs
Financed by Alternative Plans
By DR. R. M. SOLDOFSKY
Assistant Professor of Finance
College of Commerce, State University

:i

.

Finance

of Iowa

period.

Professor

analyzes

alternatives

to

"pay-as-y°udepreciate" plan of financing/equipment in explaining the
marked interest rate differences that result from
buying a

the original balance of
are

machine

tool under one instalment
plan as against another, v
Soldofsky finds the real—as compared to the nominal or
stated—interest rate to be much larger in the sum of the years-digits method of depreciation accounting, or when inter-;

for

/„
//.

est is

v

charged

the original balance, than when paid

on

basis of the unpaid balance of
It

is

well

known

to businessmen

the

on

f

* '

the

1954

Federal

tne

cash is "released"
the business.

a

of

the

extent

'*

depreciation

geared

the

to

is much

unpaid balance rather tnan

installment loan.

an

of

sum

12

•

the

and

"release"

years-digits method of accounting
depreciation, the effective interest rate is likely to be 4-5 times
large as the nominal or stated rate of interest. The
purchaser

'
cash

to the

and economic circumstances.

2

»

Corporate Transfer Agents' As¬
sociation 10th annual
outing at
Colonia Country Club,
Colonia,

•

N. J. /

Sept. 28, 1956 (New Ydrk City)

>

*

Customers' Brokers Elect New Officers

/

~

7

Oct. 4, 1956

The Association of Customers' Brokers
has elected the follow¬
ing officers for the 1956-1957 year:
//
.
;*.// .// >;.:7/.,./7'2* ;7/.7;

(Chicago, 111.)
/
Investment Analysts Society of
Chicago golf outing and field

/.
f

day at Medinah Country Club,

Medinah, 111.
Oct. 4-6,

/

Robert

M.

Soldofsky

chine

tool

under

than another
Two typical methods of

from

buying

installment

'>■

emors.

Oct. 8, 1956

(Philadelphia, Pa.) *
Municipal Bond Club of Phila-

*

are

less well

(1)

with

bank

a

loan

pany, the manufacturer himself
Unaer the latter method

installments

or

may

of the

and

or

his

a

;

firm

a

25%

ma¬

the

of

simplicity of presentation).

Opening

Year
a-<: '

>.

•

*•

i__—
2

_

15,000

5_

'

/

U

6__

;

5,000
5,000 7
;7"7: 5,000

10,000
5,000

.7$30,000

::/7

ithe $30,000

;

due

Unpaid

Also named to

though the interest is

at

..

,

Opening
Year

On

$30,000

2

....

•

•

300,

$5,000

5,600

25,000

5,000

tionof New York
the

3

20,000

4

5,000

15.000

5

10,000

-

•

$30,000

7

6,275

1,275

$7,650

$37,650

Siightly

Proportion
Year

Of Debt Paid

1

6/21's

2

i

companies, installment payments

tied

are

the basis of the sum
of the
years-digits
The pertinent facts
under this plan are as

on

Interest On

Opening
Balance

$30,000

Payment On

Principal

Original
Unpaid Bal.

$8,572

$1,275

7,143

Rate of

Total

Payment

Interest

(3)

+

(1)

.

4.25%

21,428

1,275

14,285

8,418

5,714

Total
i

Beefsteak

no

1,275

4.286

6,989

8.94

5,561
4,132

2,703

>

4,285

2,857

1,275
1,275

1,428

1,428

1,275

1957

(Hot Springs, Va.)

ciation Annual Convention.

Dec. 7,

1956

(New York City) 7

Security Traders Association of
New

,

Jan.

York

annual

p.m.

at

The

7

meeting and
the Bankers

on

STANY.

14-16, 1957

(Chicago, 111.)

Bankers

Association

9th National Credit Conference.

Mar. 18-20, 1957

American

;'/

//

Dinner & Dance, the
second, is planned
result of the
very favorable comments by members and
their

a

at

Antlers, 67 Wall

A good old fashioned Beefsteak is
all

party

American

wives who attended last
year's affair.

*

/'This affair will be held in the Grand
Ballroom/Hotel Com¬
modore, on Saturday, Nov. 24, 1956, informal dress.
Cocktails will //

(Chicago, III.)

Bankers

Association

11th National Instalment Credit
Conference.v
/•
'

X D. Creger Adds to Staff.

■

/ .1

(Special to The Financial Ch-onicle)

>

WHITTIER, Calif. — Calvin E.
o'clock, Dinner at 8:30 p.m. $30 per couple
in-// Clifford, Hugh R. Graham, Wil¬
eluding gratuities. 1
//'■:,<•/••// ;'•-./> 77• '7- / liam J. Lytton, Henrietta Miller,
\. There will be no
Irving G. Searcy and Harry H.
seating arrangements, unless a table of
be served from

7

•

•10

is

reserved.

decorated

with

No
a

Head

Table,

magnum

no

speeches.'

of Champagne at

Each
no

$30,000
$8,143




$7,650

!

■

:

,

With Security
1

*

With

14.88

regard

to

the

Annual

Meetihg, the Board

feels that all members should
make

a

of

Directors

strong effort to attend.

29.75

importance of member participation in STANY
affairs

89.29

The

over-emphasized.'

"

$37,650

are

Smith,

1

are now with J. D. Creger
Co., 124 North Bright Avenue.

&

charge.

A top notch band and
entertainment has been
engaged. Checks
to be made payable to
STANY and mailed to
Elbridge H.

,%c/o Stryker & Brown, 50 Broad Street.

Young

table will be.

additional

cannot

v

21/21's

Weighted Average

Party will be held

speeches, the tariff is

5.95

8,571

1/21's

Nov. 3-6,

'

$9,847

4/21-s
2/2 l's

6

Hilton

v

5/2 Us
.

Statler

:

Club.

The Cocktail
Party,

25.50

3/21's

3

The

planned,

Under the newest
installment plans of the
manufacturers and

the commercial finance
to the
release" of cash
method of depreciation.

follows:

the

at

7/ Hotel.

Annual Meeting & Cocktail
Party—Dec. 7, 1956.

Street, commencing at 5:00

8.5%.

meeting

■

(Dallas, Tex.)

of
Investment
Association t.. annual

Bankers

7

Annual Beefsteak Party—Oct.
17, 1958.
/
Cocktail Party Dinner &
Dance—Nov. 24, 1958.

as

•;

April 21-23, 1957
Texas. Group

Oct.il. 4

Tisch; Fitz¬

cocktail

6.38

The average annual
unpaid balance of $17,500 divided
by the
annual interest of
$1,275 results in an effective interest
of 7.0%.
If payments are made
monthly, the average of the
monthly unpaid
balance approaches
$15,000 and the effective rate of
interest is
under

Hollywood Beach Hotel.

,

5.10

6,275

on

at the

.

at

The arrangements
committee of the
Security Traders Associa¬
tion of New York
reports the completion of the fall
program for
members:-

8.50

,

meeting will be held

National Security Traders Asso¬

4.25%

6,275

1,275

5,000

Total $105,000

\

$6,275

1,275

5,000

25-30, 1956 (Hollywood
Beach, Fla.)
Investment Bankers Association
of America annual convention

THE SECURITY
TRADERS ASSOCIATION OF NEW
YORK, INC.

Interest

7 6,275

an open

gerald & Company,
Inc., Chairman; Richard F. Abbe,
Shearson,
Hammill & Co.; Thomas
Greenberg, C. E. Unterberg, Tobin & Co.;
Joseph D. Krasowich,
Gregory & Sons; Stanley L. Roggenburg,
Roggenburg & Co.

Rate of

//

that

Antlers

(5)

{//

Associa-

announces

Restaurant, 67 Wall Street, at 4:30 p.m.
Members of the.
Nominating Committee are Alfred F.

I

Total

:

.

i

SECURITY TRADERS
ASSOCIATION OF NEW YORK, INC.
The
Nominating Committee of the Security Traders

>$36,300

Payment

1,275

I

Nov.

7,650

,

Hotel Commodore.

room*

t;'i:

>

•(4)

$1,275

-

5,300

Interest On

7

New York cocktail party, dinner
and dance in the Grand Ball¬

Notes

<*f;

5.900
.

Original //
Unpaid Balance

Principal

(New York City)
Security Traders Association of

NSTA

'

(8)

"

Exchange

:

a

;
7

Payment /

Balance

1

■

Stock

Nov. 24, 1956

j.

(2)

of

Firms meeting of Board of Gov¬
ernors.

lower rate the total
amount of
interest paid is greater than
in the case of the bank
loan because
in the first case
interest is charged on the basis of
the original
balance rather than on the
unpaid balance. On the basis of
simple
interest and equal annual
installments the pertinent details
are as
follows:
2 (i)

at

(New York City)

Association

,

$37,650
Even

Beefsteak

Annual Convention
the El Mirador Hotel.

$6,800

900

per year for 6 Years

Annual

ciation

Co.; Daniel F. Davison, Hayden, Stone &
Co., and
Winslow, Merrill Lynch, Pierce, Fenner & Beane.

Nov. 14, 1956

7,6,500
6,200

77$6,300

*■

24-27, 1956 (Palm Springs,
Calif.)
National Security Traders Asso¬

Crane,

Dean Witter &

William

(New York City)

York

Oct.

the Executive Com¬

on

annual

$30,000

4y4%

two-year terms

-

-

Party at the Antlers.

Alexander, Auchincloss, Parker & Rednath;
Beatrice Bougie,
McLaughlin, Cryan & Co.; Nicholas E.

by the manufacturer
himself, a subsidiary finance
company] or a commercial finance
company. If the rate of interest
charged is 4%% and payments are made
annually, the total pay¬
ments of principal and
interest would be as follows:
Int. at

serve

-

Total

600 ;

Debt

New

Hemphill, Noyes & Co.

Todd G.

were

1956

/ /

meeting at Key

Security Traders Association of

Gerald L. -Wilstead, Hallgarten & Co.
Alan C. Poole,

mittee

the machine tool after the
down payment

on

may be financed

Oct. 17,

Albert F. Frank,
Ladenburg, Thalman & Co.
J. Harold Smith, Hirsch &
Co.

annual

Biscayne Hotel.

v

Wiisiead

Payment

1,200

v

Gerald

.

$1,800
1,500 7

5,000
5,000

*

on

Balance at 6%

$5,000

20,000
...

Int.

On Principal

$30,000
25,000

3__>
4

Payment

Balance

■

Smith

Secretary:

repayment may be made in equal
monthly
be geared to the "release" of cash
under the

sake

Harold

Treasurer:

through a finance com¬
subsidiary finance company.

is

for

J.

ciation

Vice-President:

or

payments

Alan C. Poole

President:

equip¬

(2)

(assuming

-

,

(Miami, Fla.)
Security Dealers Asso-

Florida
•

Albert F. Frank

years-digits method of depreciation. Let it be
assumed
buying $40,000 of equipment and is
required to make
$10,000 down payment, i A six-year bank loan
might be
obtained at, say, 6% to
help finance the purchase and the interest
would be charged on the
unpaid balance only.
Payments on
principal and interest would be as follows:
a

-

Oct. 11-13, 1956

known.
new

,

delphia luncheon meeting at the
Union League.

sum

plan rather

financing the purchase of

ment

sum

are

result

one

r

(Detroit, Mich.)

of Stock
Exchange
Firms meeting of Board of Gov-

*

years-digits method. (For example, seei :'
Age," Oct. 28, 1954; page 45.) The ad¬
vantages of using more productive
equipment
are well
advertised, but the differences in thethat

1956

-Association

•

"Iron

rates

Hayden- Memorial
Trophy Golf Tournament at the
Apawamis Club, Rye, N. Y.
* •

.

of the

interest

27, 1956 (Rockford, 111.)

Sept. 27, 1956 (New York City)

through the depreciation charge—some manu¬
facturers and lenders have geared
installment
payment schedule on the purchase of new 7

machin^ tools and other equipment

Field

Ding" at the Forest Hills Coun¬
try Club.

>

When the installments

more

of

Investment

the

which

/f///

<<<

In

Rockford Securities Dealers As¬
sociation seventh annual
"Fling-

less when

becomes available within %

or

\

to

By combining these; two facts—the

:

.

rapid

Septl1

should pay very close attention to the cost of
financing the pur¬
chase of equipment by alternative methods
and select tne method
which is most advantageous to him
considering his total financial

generally understood
charge made on; the /,
non-cash charge
and,;

depreciation

accounting records is
therefore, a measure

*■

Charles

Tax

charged off on a sum of the yearsdigits basis of on a double-rate declining balance basis as well
as
the traditional straight line basis. It is
also
that

EVENTS

instalment loan./,.."

an

that

Code permits depreciation to be

■,

as

>

COMING

ten-year

'

It is well known that the rate of
interest
interest is charged on the basis of the

Dr.

are

the

weignted average balance of the debt is only
$8,143 and th$ rate of
interest averages 15.7% ($8,143
-*■; $1,275). If payments were made
on a
monthly basis the weighted average would be
approximately
$6,666 and the effective rate of interest would be
19.1%. On the
basis of a 4*4% rate of interest and
monthly payments, the effec¬
tive rate of interest would be
approximately 14% for a three-.year
period, and it would increase to approximately 20% for a

be

•

.

.

WEST PALM
BEACH, Fla.^
Leroy C. Clifford, Nicholas D.
Gereffi, Juan B. Gould, Richard
A. Grass, William Karley, John J.
McCarthy, Mrs. Evelyn McDade
and

A

Cocktail Party is planned at the
conclusion of the meeting
which will be held at The Bankers
Club. >v
"■ V;
•

•

Planning

(Special to The Financial Chronicle)

Mrs.

Muriel

Siegel are now
Security Planning
Inc., Harvey Building.

affiliated

with

Volume 184

Commercial and FinancialThe
Chronicle

Number 5572...

in

A Richer Life in

Stressing the importance of teamwork, Socony Mobil Chairman
problems of the next 44 years, differing from past
56 years more in size than in nature, and believes the race

envisions

en

not

ing

small

prevented

business

who

people

cast

and

more

of

last

turn

of

f.

probability.

is

from

wAnything

fivp

dpparip<?

sources

Problems

times

today.

Only 38

years:

will

0f the oil in

is

in

nV

so

is

and
of

then

suggest

thought

lems

face

we

a

if

it

of

2,000,
courses

which

the

.

iron

our

be

Harder

the

1900

steel consumption
times. Our oil

use

than

more

10

75. times what

is

left

are

the

at

panies

'

natlonajs'fcr fvTnUV job". 'on

are

getting
„

we

we

billion now, the world will

*

bigger still except for the mt^onew raw

Our consumption

three times

at

our

as

rate

of

use
.

'

Peonle

energy

Consuming
Person

use

consumption
character

the increase in

and

raw

almost
the

is

'

material

explosive

in

multiplying of

a

of

consuming
.

is

living—more

more

per

people

in

our

Our ability to meet this demand
far more of a testimonial to

natural

resourcefulness

natural

our

tion

and

our

than : to

By

resources.

industrial

inven-

organization

people have managed to meet
the problem along two lines, first

our

by

making

a

cubic foot of
ther—do

ton,
raw

more

barrel

a

or

a

materiaUgo far-

work—than

ever

■

Call;:

Los

Sept.

14,

1956/

"

,




country, and

own

time

same

the

developing

are

countries,

home
of

steel

com-

new sources

all

the while

with

the

risks

and' costs

finding and mining

ores elsetransporting thefn to
the United States.
.
f'
-

where

and

when iron

,

the

0n

first discovered

was

Messbi

^°ars

And they

MMdle^Lst i Aow

the

must be improved if for no other

tnk;ne

0f

3

than that human happiness >tb
on having things a little
fh

reason

better each year, both materially ;

single*

a

th

is based

There

Li

hnd£
etrei

comoanies
of

are

in

substantial

execution

one

was

the

comnanv

lpading

:ndn~trv

.

the. end

the

United

States

by the year 2000.
Second,

can

double

anticipate Con-

we must

Every step of the way on the

m

is

i

xx_„

1

x

xi.

_

his

himsfelf

Canada

ore

a

from

huilt

of

one

drained

st*eWk*rs

a

?notber. to get
mountain in Venezuela;

railroad

a

our

laL.an°

dredeed

a

river

Atlantic

United
r

«tat.e<? to

1"

of

«?ephoard

we

.

•

■

'

-

L.

i

nroces«?

P

!

it

farther

away.

for*" oil. ^Last

less

accessible

still

and

$35,000,000

-

Peabody Coal Company
■1

fn

flnrf

len years earner

wens.

oil for Three and
>

^ m?llinn'

vtars earlie?

Ten

a

^

Half Hours

Depend

Depend

o«

Mental

and Moral

barrels ot crude oil

by .the way,.meets the needs of-

Institute

forma

Tec»*nolo?y.

of

domestic

reserves

Due October 1, 1976

Price 100% and accrued interest

Copies of the Prospectus
,

may

be obtained from, any of the several underwriters

only in Stales in which such underwriters are qualified to act as dealers
in securities and tn which the Prospectus may legally be distributed.

Blyth & Co.,Inc.

Halsey,Stuart & Co.Inc.
Glore, Forgan & Co.

".T;:/

"'-"'.Vv

.

.

*

*

and

moral

organ-

Hemphill, Noyes & Co.:-a

Hallgarten & Co.

apnraisal of probable deand the

^

veloptment^between Pow

next centurv is valid, it follows
that our civilisation is confronted

with
can

It

,

a

trerT,endous challenge. How

this challenge best be met?
may

help us if we start by
hnur

whprp

wp

^ Bagsica]7v theg
h

h lf

f

wp

R. W.

.

.

•/

Hornblower & Week j

William Blair & Company-

Equitable Securities Corporatiosi
Laurence M. Marks & Cc„

L. F. Rothschild & Co,
'

Shearson, Hammill & Co.

Stroud &

F. S. Smithers & Co.

Company

Incorporated

Van Alstyne,

Tucker, Anthony & Co.

Spencer Trask & Co.

Blunt Ellis & Simmona

Bacon, Whipple & Co.

G. H. Walker & Co.

The Milwaukee

The Illinois Company

Reinholut & Gardner

Company

Incorporated

Ball, Burge & Kraua

Robert W. Baird & Co.,

Stern Brothers & Co.

thjs

0f

Incorporated

J. M. Dain &

Courts & Co.

Julien Collins & Company
Far well,

McCormick & Co.

Chapman & Co.

Company

'•••

r

Merrill, Turben & Co., Inc.

century

The Ohio

Company

Mullaney, Wells & Company

Singer, Deane & Scribner

Thomas & Company

Cunningham, Schmertz & Co., Inc.

Kirkpatrick-Pettis Company

^

Noel & Cc,

Incorporated

problems

maintain and increase it
.

.

Reynolds & Co.

Pressprich & Co.

Moore, Leonard & Lynch

in the future.

Bear, Stearns & Co*
Dominick & Dominica.

Paine, Webber, Jackson & Curtu

W. C. Langley & Co.

Estabrook & Co.

.

^Vhite, Weld & Cc/

'

•

resources—on

inventiveness,

//

,

(Incorporated!

...

Given sufficient capital,
F. S. Moseley & Co.
the needed energy can be made r
Blair & Co.
Salomon Bros. & Hutzler
available. But in the last analysis ",;
Incorporated
these prerequisites depend on
•
Dick Sc Merle-Smith
Cruttenden & Co.
education,

/

Incorporntert

Central Republic Company
_.

:

Harriman Ripley & Co/

Goldman, Sachs & Co.

American Securities Corporation

A. C. Allyn and Company

A. G. Becker & Co.
Incorporated

•

Merrill Lynch,Pierce,Fenner & Beane

Kidder,Peabody & Co.

f

Corporation

Eastman Dillon,Union Securities & Civ

future.

The greatest single discoveries how to
our

(

Dated October 1, 1956

Incorporated

seem likely to differ from those
now and the time you start home, of the first half more in size than
from work this evening another jn nature. If we are wise enough
million barrels of oil will b? gone
reCognize the
sources
of our
forever. In our business there is
6
^
no scrap to be reused.
progress in the past, we may see
to

_

Debentures due

The First Boston

the American peome for less than
three and a half hours. Between

added

■

•

tb-> best work and most
Emulating, thinking, along these
lines has been done right here
\n southern California ^

ir>rtnirin£»

,

A million

'A *

sources of raw materials,

ization and management, and fair
play>

£3^ 0^0/1
oa

'•

0(::\

534% Sinking Fund

>><

poorer

^les~for every nu lb on barrels

)jdif 9^

42

September 26, 191: d

,

must expect in the next 44

mental

add?d to reserves. Only 10 years
earlier the sa^e a djtion to re™
obtained by do ling

has

ore

page

'■ ""

.

ISSUE

NEW

years* *
V Fourth, there is every reason
to anticipate that, the problems of
meeting these rising demands will
become progressively greater as
depletion of irreplaceable natural
resources forces us to turn to even

to this: Glven sufficient energy,
the essential raw materials, can
^ be obtained for the indefinite

.

on

This ^eriisement is neither an offer to sell nor a solicitation of offers to buy any of these security
ojm gts ma on y by
ospe us.

have seen in the first

the

Petroleum industry the
story 1S much the same. We find,
ourselves forced to go ever deeper
.

of iron

eOUrces

Continued

a

Bdty S
the

forp;gn

That requires

horse.

a

-

*n>

^a^ 9
cer,tury in that re&ard is only a foretaste of what

nothing to

was

,

'

try to supply their material wants,

we

thi

and

united States.
'
,1 The history of the development

and
even by

goods by walking or

tremendous challenge to
the world's agriculture and indus-

pose

a

T\jPthprlanrts
•

standards throughout, the world;
Not only will the relatively wellto-do live better but the millions
now living marginally will attain
a substantial level of comfort,
Our third anticipation is a consequence of the first two.
It is
that more people living better will
x_

th*

companies from England;

v

A man can transoort himself

improvement in living

tinued

bv

ComfLyW
bv
consortium

Oil

being handled

of o}1

long road of human progress has
increased the need for teamwork,

.rMing a horse if he can catch

.

.

is

whollv

nrbduced

Anglo-I?anian

Pr°ffreSS Teamwork
ieamwo'rk

***"

of this century,
If the present rate of natural increase
continues, the population

iri northern

range

atTbodv o" otcln

togeX

11 IOOK oniy

person.

tir^ m^To^^^develooment

present living standards.

iet alone improve them.

con-

in mis country oil producers
drilled 78,500 feet — roughly 15

More

-

rapidly growing number of people
by an even more rapidly rising
standard

'

comparing the rising cost of using
deeper or lower grade ores at

and

What has made

our

annual

an

fast

as

Per
.

alu-

example, which in
competes with copper,

increased

More

of

for

copper.
1

materials, the
gro^n.even

which: has

some areas

has

**1° by

ever-?^^

are

other

in

and vour

pronounced
Enormous as these increases
are,
Some or them would, have been

minum.

capital

enormous'

having to go
deeper for the rich iron"ore& that

Our popula-

as

of

rich

.

Minnesota, there

faster.

ore was so

Miners Are Having to Go;. Deeper

us

figure,

and complete towns, lo
bring jn vast Dtuico of cquiwincixi,
uiliig 1X1 vclot stores Wi. equipment,

All

look ahead to the year
must anticipate, first continued population, growth. While

2000

sources

century

a

taken

.

\l. '.Miners

>

Our cooper consumption is seven

duction of

line— using

less accessible

requiring

ess

look at just
changes that have

the

amount o:£

greater

systems

as

Time

because our problems
harder all the time.*,

of

other

investment.

ap-

tion in the United States has more
than doubled. 'Our
energy use is
nearly five times what it' was.

me

direction

common

'

.

turn of the centurv.

hot

rercw-

directly to the
''
blast furnaces.
Nowadays more
than a quarter of all the iron ore
shipped in this country and Canada has to go through an expensive, eight-step beneficiation proc-

taken place in our population and
in our use of
energy and of certain basic raw materials since the

times

of

could

,

.

the great probto be dealt with

starter, let

few

a

certain

are

ef ectively.
As

year

action

and

essential

pear

the

the

materials—half

raw

ago all

today to review some
.U;
important things that
have happened in the 20th Century to date, give you my guess
as Jo .what
we
may expect be-

field.- New.

a

uncommon.

poorer and

mnpQ

and

not,

10nS oi

more

now

quarter

than twice that much

more

A1°ng

I propose

tween

of

ery

th5
ustrv and

ceniury.

.

our
-

This

a

merlv

K? ?0t or 40 years ago,
n^l\y aS g0Gd aS
Thirty

today's.

a

planet.

nf fhp

F rno
Of the

better

.

..

Pr°ud of them but. not complacent maintain

much coal to gen- ;4,' As

as

kilowatt hour of electricity

does

Getting

ei-

century it took about

man

lived»°n

of

wagon

mater£l

wuiKea-iogeuiex ox meir uwu ucc
under

nf*o

thatexceptluckv to recover oil men t»m-three and a h'lf billion peoin unusual cases,
has
were

ranid rfpvplnmrw

A

provides

{t to<ik twice JP mifh cr?de
do not agree precisely in and spiritually, than they were r6ce*nt years but: that exception
011 it F0dFS a
•? does
gasoline these matters it is competently the year before.
'
no longer holds.
Iranian oil foras
today, and that earlier estimated that as compared with

of thou
of.thou-

that

B. Brewster Jennings

atomic>en~wirbmensely

in the

...»

materials, at the

raw

the

a

it

%as

n i firanf
significant

tens

of

erate

nnert?°St

r

the wheel, or the internal

or

teamwork.

no

transportation, but requires more
teamwork. And, of course, an

greatest discovery is not

combustion dneine"or

rna-

wasfp

more

our

seven

all

in

0f

use

the

half

what r

:

fire,

in

stagecoach

a

teamwork is needed to move us
WOrl'd. It is in the world of ideas. and ou.r goods by auto, truck,
west of the Persian Gulf.
There Man's
greatest discovery is team-* bus, train, ship or airplane.
■—
as a matter of
fact, halfway around WOrk by
agreement
I do not
A few men with a few tens of
the world, lie two-thirds "of all
mean to suggest that every agreethousands of dollars of savings
if the proved oil reserves on earth ment to work together has been can drill a shallow oil well in
V
today.
good. That would be like arguing settled country. It takes a much
The i story.; of copper
has not that every fire has benefited man4;/'digger organization .to
build a
v
been unlike that of iron and oil. kind. But the advance of civiliza- steel-legged island in the Gulf
■:/ In the 18th Century ores assaying tion can almost be told in terms Mexico or in the Pacific Ocean-,
v
less than 13% copper were con- *of widening appreciation of the and from it/dnll a well reaching
'r
sidered impracticable. By the be- fact
thaL- working r together
to down miles j below r the * waves,
gf-Jginning of this century the aver- produce more of the good things: Similarly the costs and usk tri¬
age
grade of .copper ore being of life pays better than fighting volyed,,iq searching .tor o:l m
processed was about 5%.
Cur- With one another over the division underdeveloped
countries across
/
rently it is well below 1%. In the of what is already available.
the, ocean are of an entirely diff Great Lakes region mines are to- X Nowhere on earth and at no ^ent dimension from those nl
dav recovering cormer frnm
5. v
.ed in d a
this country. It is necessary to
aay
recovering^ copper irom ma- time in history have so many men . iH ri k '
.
roads and water
i-terials
which they discarded as
worked together of their own free
f docks and roaas ana water

the line of making better

Along
will span

most

'*■

the

reserves

10 to 15 years have been
found in the area to the north and

before, and second by producing

November

reers
*

whole

a

to

Man's

'

will

this

vote

as

Tak-

or

or

'

,,

growth, and opines

v.-

...

first

world

additions

little

/ Teamwork By Agreement

the past

tion, management and fair play.
Young

the

Man's Greatest Discovery—

of

r

V

provided

their

sight

(

can

and capital will get, and make available, what we need
we forge ahead in education, inventiveness, organiza¬

rgy

of

-

keep abreast of the harder problem of'
obtaining resources to meet the expanding needs of our grow¬
ing population.^ Mr;'Jennings condemns \such deterrents as
inflation,/; proposed graduated corporate income tax, and"
nationalization, particularly when capital needs bom larger
than ever before; concludes big business is socially desirable
has

out

-

of resourcefulness

and

have been made

years

drilled

greatest

,

Chairman of the Board Socony Mobil Oil Company, Inc.

wells

land in the Gulf of Mexico.

Achieved With Teamwork
By B. BREWSTER JENNINGS*

recent

by

Poorer World

a

as

(1295)

Newhard, Cook & Cc.

Stifel, Nicolaus & Co., Inc.
Barret, Fitch, North & Co.

Indianapolis Bond and Share Corporalioo
McMaster Hutchinson & Co.

(1296)

The Commercial and Financial

Chronicle*.

*.

Thursday, September 27,1956

bling

among - some > of > the
better grade preferred stocks

THE MARKET... AND YOU
J

By WALLACE
Some

levels

breached

were

1

'

r

which, along with bonds, have
had to contend with

industry generally
mastered

seems

the

dealer

string of six weeks of des¬
ultory action was snapped by models, imminent now, is tra¬
a
slump that just about wiped ditionally a time for popular¬
out all
the progress of the
ity among the automotive
summer rally.
shares.
Some of the more
*

-

Hails,
about

sold

do

of

dour

*

which

to

couple

*

had

one-day

down

seemed

better

to

after

a

splurges,

around

their;

poorest levels of the year. The
industrial
average
was
in
minus

territory on the year
prospect of testing its
May low which was around a
dozen points away.

•with

a

Tight Money and Politics

:l

|

There was little in the Suez
situation that could be blamed
for the latest downturn, since
the

Canal

impasse is hardly
stage.
Conse¬
quently, the tight money mar¬
at

new

this

ket and

uncertainty over the
political picture had to assume
the burden of blame.

The fact

that the market had dawdled
all

earnings projections for

1956

made

awhile

back

are

being revised upward, conse¬
quently. Some estimates had
placed Chrysler's results as
low as $3 for the
year but the
figure more popular currently

This,

yields to

in

full

a

dollar

5%
level which, against some of
the yields available on the
growth stocks that have been
the real popular market fa¬
vorites in the bull swing, are
decidedly attractive. Cluet t
Peabody, Reading Co., Rey¬
nolds Tobacco, Safeway and

was

the

among

a new

Corn

situation

that

benefit of

Bank,

New
w

York

a

Sept.

Smelting preferreds
among the better grade
ones that have been
selling at
a yield of
5% or close to itl
'

*

it

*

"

"

Helm,

The

II.

Mr.

f

r

o..r

m

e

dent,

is

and

Street this

is

year,

also

rather

were

a

bundle abreast

Among

the

necessary to

investment

of conditions.

in the $1.20 cash

provement

since

payment
crease

to

even

in¬

an

$1.50 would

seem

to

portfolio

man¬ be earned at least
twice over
stock this year. As paper stocks
go,
yields were in line with bond and the long range element is

agers

yields
for

the fact that
was

the

sign of caution

a

but

term

near

enough of

some

not

still bullish on the insatiable
demands of
present-day econ¬

to prompt any omy

one

for

all; types

of

paper

wholesale

liquidation. Their products, Union Bag has been
feeling currently is that long available around a 11-times-

the

David

Haviland

investors

who

have

found

to here

easy game up

about to learn about

a

it

are

differ¬

ent facet of the market.
/

•

••

.

•

-

'

«v+,v

'•

■'

.j."*

to

an

didate

*•'

Marketwise the auto stocks

came

the

tion
<-

Motor Stocks Quiet Down
s:

for

end, at least tem¬

current

market.

that

for

in

"new

better

the

he

A

Bank.

was

reserve

The

for

ac¬

favoring
the

next

payments

are

time

Herbert

D.

of-Town

«

of the

Shea,

./

L.

.

■

•'

C. Par late

BUFFALO, N. Y.
is

engaging

/

Division

of

Bankers

in

of the Board.

man

a

in

manager

Assistant

Vice-President

Division

in

late
&

was

previously

Co.

a

strength. It has held
range of only 16 points

far this year

with

Bache

■

The

or

Chrysler

that

shows

best sales snapback.
has

realigned

lineup

both

ciency and

its
for

more

the

effi¬

From

sales punch. there




*

*

Join Samuel Franklin

strictly

was

some

a

yield basis

tentative nib¬

Special
that

and

1951.

joined

He

with

:i:... &

now

connected

Seventh

with

Samuel

Company, 215 West

Street.

v

'

'

has

been

O'Rourke,
The
County

Is

in

charge

of

He has been associated

44 years—the
the Elmsford

with

years
*

New

*

*

State

York

Banking
Department approved on Sept. 1Q
a certificate
providing for an in¬
crease in the capital
of the Citi¬
zens
Trust Company of Schenec¬
tady^ N. Y., from $600,000 in 24,-

000 shares, par $25 per. share to
$700,000 in 28,000 shares, likewise
in shares of $25 each.

in

Effective Sept. 14 the First Na¬
tional Bank & Trust Co. of Ellen-

servicing bank

ville, N.

from $100,000 to

*

Atlantic

ing
.•

Y.,

the

increased

sale

its

capital

$150,000 follow¬
of $50,000 of new

/ #

V.'.

■

:/sv stock.
1

«

Ralph Emerson Morton, former
V i

e-P

c

i d

r e s

t of

City Bank
Farmers Trust Company and The

of

First

the

National

has

e n

City

been

Bank of

James

New

the

Brick

President

Banking

Company

died

named
Trust

Seot. 20.

on

succeeds.

R.

G.

was

an¬

who

temporary

last

basis.

-

April

A

-

on

native

the

of

during

World War

naval officer and

became

I

a

as

a

mained

with

ment &

Trust

a

1921, becom¬

when

merged

was

Vice-President of that insti¬

tution in

J.,

starting

Peoples Bank

of

Orange,

merged

since

N.

according
to
the
Newark "Evening News" of Sept.
24, which further said: "He re¬

associated with

capacities

of

Essex

Maplewood in
he had been in

business,

former

1927.

was

&

Newark,

to

banking

East

mem¬

ber of the New York Bar in

of

moved

with the

Vernon, Ohio, Mr. Morton

served

Branch

Newark

1938. For 48 years

a

Mount

Church

on

J.

N.

was

President of the Hawaiian

Company

Co.

#

Vice-President

a

Sept. 23. He was 68 years
of
age.
Mr.
Watson, who
had
formerly lived in East Orange,

Mr. Morton

Bell,

*

Watson,

National

named

the

the

bank

Savings

was

Invest¬

Co. That institution

with

the

National

Newark & Essex three years ago.'*
•

.

-

'

1944.

\

•
•

$

#

*

Election
for

as

of

a

Savings

Lawrence

Trustee

in

the

of

v

:

As of

shall

C.

Mar¬

The

Aug. 31, the First National

Bank

City

of

New

"

•

sfc%

A. Bugbee and Albert D. Schlossin
are

29

The

v

B. Franklin &

en¬

order

■

;

ing

ANGELES, Calif .—Maurice

beep

F.

of

Company,

South

with

the

and

customers

window

Thomas

banking for

last

work with the
Out-of-Town Division in 1955 and
in

the

a.m.

bank.

began

is concerned

drive-in

a

Trust

Mr.

Trust

visit

modernized

Vice-President

Industries

Bankers

to

accommodate

the office.

been

time.

The

of

in

and

.

better

installed.

Petroleum

the

Re¬

^

office

larged
to

a

Pennell

ous

(Special to The.Financial Chronicle)

*

has

Federal

invited

public

City Bank
Farmers Trust Company in vari¬

specu¬

I OS
■j

the

the

bank anytime between 9
8 p.m. The interior has

Bankers

He

1954.

since

nounced

back

earlier in the
year.

executive
more

excessive

the lative
interest shown in them

Chrysler

Group in

He

•

of

with

Division

York,

(Special to The Financial Chronicle)

against the 20

trim

of the

some

November
associated

of

and Saw Mill River
Roads in Elmsford will open with

program for a year and
credit
investigator
until

a

North

as

Tarry town

training
as

known

Office, according to
by the Board of

County Trust Company of White
Plains, N. Y„ at the corner of

Ketchum

with

career

be

remodeled

4»f the Hawaiian Trust
Ltd., in
Honolulu,
it

With FIF Management

LOS
porarily, of their recent buoy¬ to
ANGELES, Calif. —Clif¬
30-point swings
of
St. ford
G.
Brand,
Frederick
W.
But * there
are
still
Regis, Great Northern Paper Bushiiell, Jr., Ervin J. Dimter,
plenty of students who regard and
A.
International Paper. Alfred
Fournier,
Marianne
them
as
one
of
the
more
Masako Kimura and Freeman W.
These, incidentally, have re¬
Peid have joined the staff of FIF
promising groups, with the treated rather
generally in the Management Corporation of Dencamps about evenly divided sick
markets
ver.
to

whether it will be Ford

his

North

System Aug. 25.
yiy.-v-v"V' *

Trust in 1952 serving in the bank's

C.

ancy.

over

began

at

announcement

Governors

in the Foreign
Mr.

branch

a

serve

Ketchum, Jr.,
Group, Paul W.

manager
in 1955.

15,

Babylon, to
Lindenhurst
an

the

and

Banking De¬
Sept. 10. The State
established on

on

of

Lindenhurst, N. Y., Township of

District.

show of

so

a

customers

business from offices in the
Shelton Square Building. Mr. Par-

Ap¬

Assistant

of

August

Simultaneously,

the

of the Petroleum

V;,-'

ties

various

Chief

Suffolk,

election of John C.

well Marpe,

securi¬

the

1940,

a

Bank

Foreign Ex¬
change Division, to the position of
a

so

Lucian

in

served

including

in

the New York State

Mr. Colt made known the promo¬
tion of John Hawes, Jr., formerly

Opens
—

entered

Dime"

partment

it was announced on
Sept. 24 by S. Sloan Colt, Chair¬

gen¬

• -:

Tria

in 73,125 shares, par value
$10 per
share, to $745,880, in 74,588 shares,
par $10 each, were approved
by

Out-

company

with those of the
They are presented
of the author only.]

•

on

plans

Bank

Trust Company of New York has
been named Vice-President of the

cmnej.de

those

Dime"

in

crease

.

fc'y
?

"Chronicle."
as

the. Board

calling for an in¬
the capital of the State
Suffolk, at Bay Shore;
Long Island, N. Y., from $731,250,

on

banking
veteran
of
sheltered.
•
v
V- •' nearly 35 years, joined the com¬
pany in 1922 and has been asso¬
[The views expressed in this
ciated
with
Foreign
Division
article do not 'i&r'it&fily at any
work sinee joining the bank. Mr.

The

a can¬

market

school

leaders"

the

of

"The

since

Mr. Tria is

active duty
with the U. S. Army from 1940
through 1945.

four

in the dividend denartment

Parlate

stock, moreover, is also

The carriers

has

praiser; and

l.'«-

,

Chemical

officer,

erally have been conservative

range
prospects are
unim¬ earnings basis, which also is ■i,~"
paired, although the impatient considered a reasonable ratio
an

span

of

sity in 1937, Mr. Haviland joined

being one of
more neglected of the car¬
riers with a price
range this
that has yet to

Bank

announced

Secretary.
hiember of the Long
and is responsible for its business Island
Society of Real Estate Ap¬
in the New England States. After
praisers, The American Society of
his graduation from Yale Univer¬
Appraisers, etc.

the distinction of

full points.

has

"The

of

capacities

Na-

tional Division

named

year

of

Mr.

and

member of the

pretty much sitting widely regarded as *4 .candi¬
the
pat except for the inevitable date for at least moderate im¬

switching that is
keep a
varied

a

employ

-

,

in the

at

Trustees

Y.,

President.

Vice-Presi-

>

rampant

New

Sept. 21, Alfred J. Tria was ap¬
pointed
as
an
Assistant
Vice-

Assistant

ban k's

meeting

of

a-

capitaliza¬ somewhat^ sophisticated, al¬ Marpe, of the Foreign Division
bred
caution
at
best
and
tion, only a shade over half a though limited, clientele. The and Edward H. Pennell, of the
prompted selective selling at million
Out-of-Town Division to Assistant
shares, which is at¬ attraction here is above-aver¬
least by the short haul
Treasurers.
Mr.
Shea has
been
tractive to some market dab¬
age yields, possibilities for a associated with the bank since
traders.
*
blers because market action
1933.
After
work
in credit and
rousing fourth quarter busi¬
can be
investigation,
Mr.
Shea
sharp where the float¬ ness this year and the growth field
Volume was, if
anything, on ing supply of stock is small. of traffic
joined the North Atlantic Group
along their lines as in 1943. .fie was named an Assist¬
the low side for one of the few
business > expands.
Rock Is¬ ant Treasurer in 1943 and an
favorable
notes/
The
man¬
Promising Paper Issue
land j for instance,! is available Assistant Vice-President in 1946.
agers of the larger portfolios
Union Bag &
Mr. Hawes
started his career
Paper, rather at a
yield of above 7% which
refused to share the pessi¬ well deflated
with the bank in 1951 and was
from its high
is also true of Erie. Erie has"
mism

of

Savings
N.

that

Chair--"

man.

Dime

Brooklyn,

,

small

a

Bank

an

The

:

'

;

is
of

George C. Johnson, President of

by

Haviland,-;

Carrier Yields Attract

issues

Manhattan

'

on

20

Harold

**

Marshall

York.

if.

'

-

Mr.

Vice-President

Chase

*

'

Board.

Executive

,

an¬

s

nounced

are

the

Ex--

change

peak, and that price where
earnings are believed
Rails, although inert mar¬
a feature of
adequate to support a hike. ketwise save for an occasional
September set up an unfavor¬ This
issue, moreover, has the fling, are still favored by a
technical

York was announced on
Sept. 21
by DeCoursey Fales, Chairman of

Chemical

American

s$c

Bankers

and

DavId HavIland has been
lected
Vice-President
of

e

erosion has been

able

BRANCHES

OFFICERS, ETC.

REVISED

r

K

Mesta Machine, among
tha t
common stocks offering a

above

NEW

NEW

•

CAPITALIZATIONS

above the

or

CONSOLIDATIONS

,

lifted

turn,

the
5%
pessimistic one. Ford, which
sells a dozen points below or better yield, had a growing
Chrysler, is currently being following among those who
hunt among the
machinery
figured for earnings this year
firms for issues, that will ben¬
running toward $4.50.
efit from the heavy capital
expenditures for plant and
The
hunt
for
increased
equipment that are necessary
dividend possibilities was if
in
this day of technology.
anything sharpened by the Machine tool
shipments fell
discouraging market perform¬ sharply from 1953 to last
year
ance, particularly since sus¬ when
orders
took a sharp
pect yield levels alter
upturn late in the year. The
drastically as soon as a higher obvious
possibility in that
rate is posted.
Cooper-Besse¬ earnings will be able to snap
mer which on the
present $2 back
smartly.
1
' :
rate showed a
yield of close to.
is

through August after a
couple of unsuccessful tries 5%
for

News About Banks

re¬

vised money market ideas that
whittled them
down
price^ J.

inventory problem and the in¬
troductory season for the new

a

some

**

* '

wise.

have

to

by the

stock market this week when

-»-«

STBEETE

The

important resistance

*

Bank* of

May's

Landing,

Continued

on

N.

J.,

page

55

Volume 184

Number 5572... The Commercial and Financial Chronicle

from

Public

Declining Oil Stocks and
Temptation of Uranium

Utility Securities
By OWEN ELY

0:0
Long: Island Lighting

electricity

serves

r

population
Nassau
the

and

Suffolk

in Queens

about

and

about

contiguous

sula
are

of

to

gas

1,600,000
counties

a

in

and

Penin¬
County. Revenues

Rockaway

76%

electric

24%

and

gas.

Electric

54%

residential, 24% commercial,

13%

revenues

industrial

and

about

are

miscel¬

9%

laneous. (Although industrial revenues
have
more
than doubled

.

since

install atomic reactors but is

con¬

sizable amounts to
Atomic Power Development Asso¬
ciates
and
Power " Reactor
De¬
velopment
these
also

assigned';

obtained

to

1950

93%

of

the

service

containing

about 55%

customers

receives

of

area

the

residential and

Rapid strides

a

source

of

heat; (2)

its

high

in

April

the

Dow-Jones Industrial Average has
fallen-from

peak of 521

a

to 490

recently,; The oils have been
of

"v. ..'v,.-

one

the..leaders

are

•

*

'

*

m'0:

-

r'

*

'

increased 65% during 1940-50, ac¬

Census reports, and
-Suffolk
County
40%,
the two
* largest
increases in New York

cording

to

State. Since 1950 total
has increased
The

mated.

'-'have

over

company's

increased

decade

population
60%, it is esti-

287%

latest

lion shows
over

*

*

5

-

v:

•,',1

figures of $94 mil¬

gain of nearly 80%

1951.

The

:

a

should

be

approxi¬

follows:

as

Millions

Mortgage

Bonds

Debentures

......................

Preferred Stock

Com. Stock Equity

Percent

$162
11
<0

..................

(6,899,000 Shs.)

46%
3

17
34

,

119

anticipates con¬
tinued rapid growth, with, reve¬
nues of $140 million by 1960 fore¬
cast.
During the period Aug. 1,
1956 to Dec. 31, 1957, $71' million
is scheduled to be spent on plant,
including part of the cost of 340,000
kw
new
capacity
which
compares with present capability
of 702,000 kw. In addition to the
two 170,000 kw units now under
construction, the company also
plans
to
acquire
property
at
Northport
for
construction
of
another large generating station.
M o r e o v er, the interconnection
with Consolidated Edison with a
company

100%

$352

past

a

revenue

mately

revenues

in the

slightly faster rate
than Florida Power & Light. The
at

or

capitalization

Despite the very rapid growth
of Long Island Lighting, the in¬
crease in share earnings has been
somewhat disappointing since the
company
was
recapitalized
in
1950. In that year share earnings

$1.19

were

the

and

three

next

slightly lower with

years were

a

to $1.21'in 1954 and $1.34
in
1955.
This
year
with
cold
weather stimulating gas sales the
company expects to earn $1.60 for
recovery

decline,

at

least

holdings

uranium.

fear
.

the

bigv.

power

money.

vThis

for

fear

When

fully
and

care¬

which
they rare interested. Al¬
though most- coal stocks should
probably be sold today, there are
which

should

be

It is reported
other

fuels

being used today
time in the past 100

young

the

tre¬

expansion

power,

fact,

candles,

gas,./ and

are

any

mendous

In

more

more

notwithstanding

years,
for

that

kerosene,

than at

rich

oil

records

their

of

of

uranium

competition.

becomes

real

a

for

most

were

■

coal

-t

com¬

•,

It is reported that the Koppers
Co.

Kennecott Copper Corp.
already asked the Atomic
Energy Commission for permisr
and

have

sion

to

sell

the

refine

would

uranium

product

sell

coal

direct,

they

as

oil.

and

This

is

I

man

of electricity
lighting, and heating.
recently heard of a
who has developed a

profitable

business

watch.

the

As

war

scare

passes,

Congress will compel the AEC to

permit,

under

license, the treat¬

ment and sale of uranium.
mand

for

small

then follow.

reactors

A de¬

should

•

For this demand both the West-

inghouse and General Electric or¬
ganizations
are
now
preparing.
Some of their engineers believe

supplying
fireplaces. Anyone that the heaters in our homes /
desiring to start a new business will some day be discarded and
chain today might well own hard¬ replaced by uranium heaters. They
forecast
that
a
small
wood lots near several large cities further

hardwood

for

storing up reserves for
payment of estate taxes at the and deliver a standard quality of amount of uranium can, by the
time of their death. They can now
hardwood, under a special trade "self-feeding process," be made to
buy, at
92, Government 2%% name which could be nationally last several years. Shipping
is
sure to turn to this fuel. Probably
bonds which will be accepted at advertised! I am
willing to fore¬
will follow, and ulti¬
par for death-tax payynent.
cast that a 100 years from now— airplanes
There also is fear — with the
perhaps 1,000 years from now— mately (perhaps) automobiles. I
present surplus of oil—that the people will be burning candles on am. only
a
statistician,
not
a
Income tax consideration given oil their dinner tables and hardwood physicist, but I advise that the
the

companies
This

price
more

oil

of

be taken away.
easily happen if the

may

could

gasoline

companies

what

much
surplus. The

increases

while there is

a

also

are

watching

in their

stocks

fireplaces!

may

the. manufacturers

of

Peacetime

Uses for the Atom

Privately,

I

believe

the fear of uranium

as

that
a

it

source

is

household heaters,
and other utilities may be better
buys than the uranium itself.

of

has

happened to the coal heat which is causing many inves¬
Th^ feeling is that tors to take profits on their oil
oil producers stocks. The possibilities of peace¬
time uses for uranium are greatly
also suffer.
or

of

small reactors,

companies.
sooner

John J. Keenan Co.
■

-i

•

■

-

• ■»

r

.

\

later .the

Long-Term Outlook for Oil

the

calendar

The

increasing.

Ten years ago it was

thought there

was

only

a

Formed in Los

Angeles

(Special to The Financial Chronicle)

limited

year.

rather

increase

slow

in

tion

.

vantage

of

fluctuations

in

cost.

The

ad¬

fuel

]
company

has no plans to

much larger than before. Conver¬
of the new preferred issue

sion

will bolster the equity ratio over
the next few years, and no further
sales of common stock are exr,

pected

AREA RESOURCES BOOK




exploins why the
urea

we

offers

so

next six months.

Dividends

to

industry.

Write for

an

200,000 Shares

3-4

next

indicated

currently at the

approximates
$1.20 would

Class A Common Stock

75%,

to

for

currently
yield 5%.

Allentown Portland Cement Company

.<

but since the payout

usually

increase

,

are

rate of $1.10

ratio

opportunity

the

years. Some $20-25 million bonds
will probably be issued within the

serve

much

least

for at

The

1957.

selling

around

(Par Value $1.25 Per Share)

seem

is

stock

22

to

OFFERING

FREE

Joins R. F.

COPY
Box

Salt Lake

City 10,
Utah

PRICE

$26.50 PER SHARE

Campeau

(Special to The Financial Chronicle)

899,

DETROIT, Mich.

Dept. K;

Best
R.

F.

has

become

Campeau

obscot Building.

Lome M.

—

connected

Company,

Copies of the Prospectus may be obtained in any State only from such of the several under¬
and otherias may lawfully offer these securities in such State.

with

writers named in the Prospectus

Pen¬

,

With B. C. Morton Co. ;

Kuhn, Loeb & Co.

(Special to The Financial Chronicle)

DETROIT,
Bell has

Mich.

—

James

O.

joined the staff of B. C.

Morton & Co., Penobscot

Building.

September 26, 1956
M

H'

rI

• 1

...

and

ores

LOS ANGELES, Calif.—John J.
Although oil will have,competi¬ amount of uranium; now we are Keenan &
Co., Incorporated has
from
power
generated
in told the supply is almost
un¬ been formed with offices at 639
share earnings is considered due other ways, oil consumption will limited.
Therefore, uranium can South Spring Street to engage in
to the large sales of common stock increase for many years to come. become a standard source of heat
a securities business. Officers are
(the number of shares is 92% Demand for electricity is con¬ for the production of electricity. John J.
Keenan, President and
higher than in 1951), the rise in
stantly rising, the availability of In fact, there is a possibility that Treasurer;
Joseph
B.
Keenan,
the equity ratio from 27% in 1950
new
turbines,
and
perhaps Vice-President; and Marilyn J.
hydro-electric sites is de¬ boilers,
to 33% currently, and hurricane
Carner, Secretary. John J. Keenan
damages plus the charges to set creasing, and the plants generat¬ dynamos will some day be elim¬ was formerly with Morgan & Co.
up a hurricane reserve.
ing electricity constantly demand inated. I forecast it will be pos¬ as manager of the Wholesale De¬
The management feels that the
capability of 100,000 kw will be
greater fuel supply. Although coal sible to generate electricity direct partment.
increased to 200,000 kw in 1957. era of common stock dilution is
The company's larger stations are drawing to a close,
The equity
equipped to burn oil and coal, and ratio has been built up, and any
the big Glen wood Station (420,000 future common issue will result
This advertisement is not an offer to sell or a solicitation of an offer to buy these securities.
kw) can also burn natural gas in a smaller percent dilution as
The offering is made only by the Prospectus.
in the off-peak gas season, which the company capitalization is now

enables the company to take

■

in

all

something that all investors should

purchased.
more

land

'"*»'.••
Significant News Items

are

that

the operating costs
location^ : of; the
mines
in

some

of

have

the

of

some

already acquir¬

oil, some of the oil
companies will be able to supply
uranium.
All oil. companies will
not
be
caught
unprepared
for

check

doubtless

that

uranium

substitute

houses
means

holders of coal stocks should

the

Therefore, do not sell all oil stocks

,

making

this

to

own drilling and must have drilled
through uranium-producing areas.

.

consumption as a whole is declin¬ change, as
ing, the efficiently operated mines panies. :
near

course,

Furthermore,

companies

in the oil surplus

some see

of

add

we

understand

ing

noted

investors

many

by oil companies of uranium-rich land.

beingrhadein,,
in,this decline.
the company's: gas house-heating
21% commercial and industrial.
This, however,
;
The aviation industry is the campaign. Over half of new homes
is only natural
largest in the territory. Numerous now. being planned provide gassince they had
factories have been eredtect ih re- heating. Moreover, during the first
p rev i o usly
cent
years
by
light industries, eight months of this" year there
been among
their employment absorbing most were 1,800 conversions in older
the: best per¬
of the population increase. About homes from coal, or oil to gas.
formers. I will
two-thirds of the wage earners Earnings on the gas business have
now
discuss
:
live and work within the area. been relatively low in the past,
some
reasons
Industrialization is rapidly spread¬ and it appears likely that share
for this "de¬
ing eastward into Suffolk County, earnings can reach a substantially
cline,
"
I
which however remains an impor¬ higher level before they will have
Wall
Street
tant farming and fishing area with to worry about reductions- in gasreports to me
the largest agricultural income of rates.
that
the
"in¬
Roger W. Babson
The company is currently issu¬
any county in the State.
siders" : are
The per capita income in Nassau ing rights tor common stockholders
selling, that is,
County is one of the highest in on a l-for-38 basis to subscribe those
who are supposed to be "in
the State and nation. Long Island for 180,000 shares of convertible
the
know."
You
cannot
blame
is also noted for its rapid growth. preferred stock at $100 per share.
these insiders for diversifying, or
The population of Nassau County On completion of this financing
are

stock

(1)

When

oil companies are

conclude preferential income tax treatment accordedLv

of acquisition
Since

btu

1,000

and

79%

as

to

gas

substantially

revenues

I

,:u

.'Mr. Babson maintains oil
consumption will increase for many
years to come, and cautions against selling oil stocks in view

Laboratory.

About

oil

This,

industrial revolu¬

an

the results could be fantastic.

removed; and (3) others are switching,
92, to Government 2Vk% bonds for payment of estate taxes.

at

Brookhaven

local employment natural gas. The balance presently
increased, the ratio receives 537 btu gas,' consisting
of industrial to total revenues has chiefly. of natural gas reformed
remained
fairly
constant.)
Gas at the Glenwood Catalytic Plant.

'

tion.

cause

possibility of harnessing hydrogen,

oil companies will be

share in
by
Personnel are

results

companies.

National

uranium
reason

Company, to

research

seeking an explanation for
England analyst theorizes:

New

tributing

the

;V'.

By ROGER W. BABSON

•

uranium.

would

Company

In
Long Island Lighting Company

IT

(1297)

18

The Commercial and Financial Chronicle

(1298)

that

Futility of Economic Sanctions
Canal

Suez

and

crisis,

end
„

Indeed,

believe

that

to

Governments

con¬

cerned with the Suez Canal situa-

]] lion is still in

.

.

L;

..

.

i

»

the

melting
pot there appear to be undications

that

'

C- VM

whichwill

eventually
emerge
from

\

it will be

in

''4®

,

even

debt,]

be

not

.

hopelessly

unbalanced, that again would only
result in

of

curtailment of imports

a

economic

from the Western countries.

sanctions.

step too

Some

part of Colonel Nasser's countersanctions. Its result would be that]

moves

'

in

rection
already

•;

di-

that

have
been

in
^Egyptian

Paul

; if not in their

Einzig

of blocking
their effect

also constitutes
tion.

would

economic sanc¬

an

It

was undertaken partly to
sending ships to an area
that might well become the scene

■*] avoid

be

be

That

taken

diverted

countries

to

the

as

from

Soviet

Union and to satellite States.

Cutting Off One's

Nose

;

j

^

Above

of hostilities, partly to avoid ex¬
posing the ships to arbitrary ac- each million pounds of canal dues
tion by the Egyptian Government, lost by. Egypt,
Britain and the
and
partly
on
the
assumption other maritime powers concerned
to
lose
that after the withdrawal of for¬ stand
many
millions of
eign pilots the Egyptian author¬ pounds as a result of the addi¬
ities would not be able to man¬ tional cost of transport, the delays
age--the canal traffic. - But from involved, and the effects of a pos¬
an economic point of
view, the. in¬ sible scarcity of oil in; Western
cidental effect of a fall in canal- Europe v during ; the
transitional
traffic would be that, instead of period. It would be necessary to

;

making

a

profit, Colonel Nasser's

Government

would

nationalized

canal

operate- the

at

financial

a

'

loss.

Hence the possibility of ap¬

plying this

means as

economic

an

sanction.
Should

v.

;

Colonel
of

,

.

-

possible do

Nasser

with

the

economic, sanctions,

force
aid

adopt
a
'mor e. reasonable.„.attitude,
there would be everything to be
said

.

be

it

in

favor

of

to

such

sanctions.

Those who expect economic sanctions to produce their desired ef¬
fect

guilty
The

lesson

adopted

the 1

of

sive

put

sanctions

Mussolini

invasion

of

after

Abyssinia

to have been lost

Yet it should make
that

on

them.

it quite clear

nation

inspired by aggres¬
nationalism is prepared
to
up
with
a
considerable

a

amount

of

hardship
nomic

inconvenience

inflicted

sanctions.

instances

on

it

There

besides

by

are

that

of

and

confirm

this

value

eco¬
other

the

conclusion.

can

the

be

no

nation

same

nationalism

doubt that the

is

inspired
aggressive

now

kind

of

that

characterized

Mussolini's Italy in the '30s.

that,

if economic

even

This
saner

tions inflicted grave hardships on
Egypt, the vocal section of the
Egyptian Nation would be willing
to put up with them for the sake
of upholding the nationalization
of the Suez Canal.
ever,

It seems, how¬

that the extent of the hard¬

ships that economic sanctions can
conceivably inflict on Egypt is
grossly overrated.
Supporters of the idea of
.

nomic sanctions

Suez

Canal

itself.

need for increasing the im¬
port of dollar oil would result in

of dollar scarcity.

are

fond

of

New

City,

their

on

to

off¬

balance of

ment

the

is. well

Soviet

in

Govern¬

position

a

take

we

ac¬

istered

nounced

day-

to
dis¬

eco¬

Mr.

far

Moscow

for

could

loan or grant an amount
equivalent to the losses arising

easily
from

the

diversion

a

of

traffic

Suez

Canal.

If

countries

reduce

their

Middle

Union

and

East
the

the

oil

from

Western

purchases

the

satellite

Soviet

countries

might easily step into the breach
and transport their additional oil
purchases through the Suez Canal.
The

Soviet

Union

and

•

INS

for

easily buy up the
crop if the West¬
ern countries should place an em¬
bargo on its import.
Having, regard to the above
considerations, it seems more than
probable that any attempt to force
Colonel Nasser by means of eco¬
to

change

his

policy would be doomed to end in
a .-,
complete
fiasco.
It
would
strengthen
Colonel
Nasser's
prestige in the Arab world and it
,

would
in the

increase

Soviet

influence

say¬

['on the verge of bankruptcy"
ana that losses
 resulting from the
running of the Canal at a deficit


—

Possibly,

Are

opinion

it

whether

in

in

reserves

most

cases

rate

Phila,

of

Municipal Club

of the

more

of

for

interest

the

same

fabulous

so

con¬

were

of

cost

Luncheon Oct. 8

conflict

PHILADELPHIA, Pa. — The
Municipal Bond Club of Philadel¬
phia has extended an invitation

had to be financed,
to members of the
Philadelphia
cheaply as possible. In this'
Securities Association; to attend, a
period the banks did have an in-; luncheon
being given for Secre¬
creased volume of loans, but .the
tary of Commerce Sinclair Weeks
1
rates improved for. them but on
Monday, Oct. 8 in the Lincoln

27

years,; during

little-

Room of the Union League.
the postwar
Mr. Weeks' subject will be "The
improvement in Highway Program." Russell W.
daily ;; and
\
* the
earnings, of ..the banks. The. Schaffer of Schaffer, Necker &
weekly stock-market stories were
rate of expansion of the general Co. is in
charge of reservationsdistributed in this country and
economy accelerated, and with it.
which

his

period

Tneodore

syndicated

rv-s.^w

Then

;

came

and with it

.

came

,

abroad.

loan

and

volume

interest

rates

improved. Where, prior to this,
investments, mostly U. St Govern-,
ments, had absorbed most of the

Wnt. P.

e x c

h

a

that

Edward

Paul

L.

as

reg¬

tions

Grubbs

Keir,

its

Francisco

110

Sutter

Street.

formerly

was

for

manager

San

Baxter,

Williams & Co.

49.9% in loans; Bank¬

versus

the

at

55.2% in loans.

&
L.

Roderick

years

with

H.

A.

tribution

Riecke

of

major

our

higher earnings
turn

that

on

Finance, University of
Pennsylvania. ;*

Beane, 29 Page Avenue.

Courts Adds to Staff
(Special to The Financial Chronicle)

banks*

CHARLOTTE, N. C. —John L.

investments

on

connected

J.

with

of reserves "for bad debts" by

large New York banks to the
that the Treasury

this

possible.

totals of these
of 1955

A. C.

steady build¬

a

makes

MINNEAPOLIS, Minn.—John

with Courts &

Co.,

'

average.

extent

Mahoney Co.

now

re¬

*

the

(Special to The Financial Chronicle)

Thomas is

the rate of

as

There has been
up

with

Liberty Life Building.
is, roughly, twice

loans

on

connected

now

Lynch, Pierce, Fenner &

So there has been

of

now

Merrill

re¬

&

graduated from the Wharton

is

ASHEVILLE, N. C.—Robert J.

Grimsley is

assets, and all favoring decidedly

Co., Inc.
A native of Hazelton,
Pa., Mr. Roderick attended Wy-,
oming Seminary, Kingston, Pa.,

With C. D.

date

same

fi

important change in the dis¬

an
Edward

Joins Merrill Lynch
(Special to The Financial Chronicle)

in

assets

ported 16.6% in governments and

was

associated

Welch

Corporation,
Meyer

Mr.

June 3D last

on

of

16.0%

Trust

ers

Mr.

Roderick

School

govern¬

United States Government obliga¬

repre¬

Jenks,

and

they have to

as

example,

an

showed

Prior to join¬

six

loans and

First National City Bank, to use
as

sentatives.

for

than twice

FRANCISCO, Calif.—Wil¬

ments.

assocated with

istered

more

much committed to

SAN

liam P. Meyer has become associ¬
ated
with New York ] Hanseatic

and

become

them

present representative large New
.York banks have

Behr

E.

contracted. "Thisr shift

ip distribution continued until at

discounts

(Special to The Financial Chronicle)
~

vestments

as

nges,

<

New York Hanseatic

banks'^de£osits, now .lo&ns were
beginning to increase, while in¬
PHILADELPHIA, Pa. —Jenks,
Kirkland, Grubbs & Keir, 1421
Chestnut Street, members of the
New York Stock Exchange and
other leading

Meyer With

formula

Some of the
at the end

reserves

:

Allyn Adds

(Special to The Financial Chronicle)

"

p CHICAGO, - 111. — William
Woodside
with

A.

has

C.

become

Allyn

S.

affiliated

and

Company,

Incorporated, 122 South La Salle
Street.

were:

.

C. D.

Mahoney & Company, Baker
Building.

NATIONAL
Stowers Adds

to

Staff

(Special to The Financial Chronicle)

Bankers

KANSAS

CITY, Mo.—Amos A.
Hermanson, Jr. is now connected
with

Stowers

&

Company,

BANK

of INDIA, LIMITED

312

to

the

Government

Kenya Colony and
Head
.West

West 46th Terrace.

Office:

26

in

.

Uganda

First National

City

Bank of New York

Bishopsgate,

London, E. C. 2.
End -(London)
Branch:

13, St. James's Square, S. W. I.
in India, Pakistan, Ceylon,
Burma, Aden. Kenya, Tanganyika,

Circular

on

Request

Branches

Not

may

5,607,000
6,000,000
50,000,000
'4 11,740,000
11,329,000

as

Middle East.

Sanctions

reasonable

was

rates

as

the

Czecho¬

could

sanctions

$76,604,000
32,236,000
f 7,994,000
9,906,000

on

and

/

Koslow

bad been with

Egyptian cotton

nomic

Chase Manhattan

These

cerned,

Kirkland,

insignificant

Russia.

the

The

banks it

to¬

/'

.

ing

Soviet

in

their invested capital.
Then came the war; and for the

an¬

was

but

are

weakness

for

earnings

repre-

nomic sanctions. The amounts in¬
volved may be large for Egypt

they

current

any

York

have

payments.
Moreover

Once

as a reg¬

Roderick

effect

The

equity markets has affected four Manufacturers Trust.
groups of stocks, industrials, rails, Hanover Bank______
insurances, and, to a less degree, Irving Trust

,

ther

set the

Bank Stocks

John Muir & Co.

announce

measures

—

Theodore Koslow With;

Britain and other European coun¬
tries would have to resort to fur¬
corrective

This Week

prime loan rate stood at 13k %
are carried as deductions in the
a
considerable
period, - and
totals of loans
outstanding at a
with the tide of commercial and
count of the realities of the situa¬
given time.
]
industrial
borrowing at such a
tion we stand a better chance of
There is thus justification for
low point it mattered little what
arriving at a practicable solution.
the improving markets for the
the prime rate was. Even in se¬
stocks of these New York banks.
curities, the government endeav¬
Their improvements thus far have
ored by cheap money to restore
probably not kept pace with earn¬
prosperity — although the money
ings, but they are now beginning
managers ought to have known
to be sought after, where for so
that confidence was a far more
Theodore Koslow,
long they were largely neglected.
former fi¬ pot en t f a c tor in
establishing
nancial
editor
of
International
favorable business conditions than During the current, weakness in
News Service, has become asso¬
most equity markets, the bank
loan rates were. But the low rates
shares have, on balance, given no
ciated with the New York Stock
mitigated against any fair level
Exchange*
].
of earnings for the banks; in both ground.
firm of John
their loan operations and
their
Muir &
Co.,
investing, the cards were stacked
39
Broadway,
against
time.

months

the

The

another period

to

reason

With Federated Plans

Practical

""Uganda,

Zanzibar,

land

eco¬

ing that the Egyptian Government
is

the

of

slovakia

There

Egyptian

means

and

capital expenditure involved
might well exceed
the
capital

of

League of Nations economic sanc¬
tions against Italy in 1935 which

by

tankers

be,.

against

Italian

seems

additional

indemnify Egypt for any
however,
of unwarranted optimism. advantages resulting from
to

appear

the

build

is

of those who
economic sanc¬

sentative,

all, by diverting ship¬
ping from the Canal* for the sake
of bringing economic pressure to
bear on Colonel Nasser, the West¬
ern countries would be
cutting off
their nose to spite their face; For

y*

there

many

favor

adequate today rather than in six

it

intention, the diver-.

sion of-traffic from the Suez Canal

:

orders

Western

the form
assets. 1 In

; made

■*

Dr.

is liable to

By ARTHUR B. WALLACF

.

Nasser

wo'ddbecome

desired

the

take
many
months
before the
futility of economic sanctions will utilities. On the other
hand, bank New York Trust-:--.*.
to
be fully
realized and, stocks are
at their highs for a long J. P. Morgan & Co.__
meanwhile, the chances of using
span of years.
First National City..
force would gradually recede. It
For - a long period during the] Guaranty Trust
would be as well to be realistic
depression the climate was dis¬ Bankers Trust
and to come to the conclusion
that economic sanctions are in¬ tinctly a bad one for the banks.

be taken by
deliberately as a
counter-sanction.- If 'they mean
that the Egyptian balance of pay-

;

one

favor:

might

step

Colonel

decision :

/•

its

would

andlnsurance
Stocks

come

the; Egyptian people but foreigri
holders of Egyptian bonds. Such a

mistakable in-

*

sufferers

the main

Bank

Western

tions only want to adopt them as
a means for gaining time. It may

precisely; what they mean
by
"bankruptcy." If they mean that
the Egyptian Government would
suspend the service of

'

y the

,

Eng. —Although at might
easily
bring
about
its
writing the policy of bankruptcy.
They never. define

the "Western

:

achieve

to

profess

hardships—grossly overrated by the West—
upholding nationalization. In examining the
meaning of national "bankruptcy," Dr. Einzig contends: (1)
counter-sanctions may be levied involving payments to foreign
holders of Egyptian bonds, and imports from the West; (2)
U. S. S. R. could make up Egypt's financial losses in the
Canal, and buy oil and cotton embargoed by the West; and
(3) added transportation and ship costs would be more than
Egypt's toll losses.
time of

the

a

no

by means of economic sanc¬

tions.

themselves to any

LONDON,

eco¬

provide

.

avers

for the sake of

the

for

.Thursday, September 27,1956

our¬

that

would

whatever

countries

of sanctions and/or force in
Egyptians would inure

deceive

not

believing

sanctions

nomic

hope

British economist deprecates use

into

practical alternative. There is

v' By PAUL EINZIG

the

should

we

selves

.

.

a

matter

existing

(Special to The Financial Chronicle)

of

cir¬

cumstances the

use of force in de¬
fense of the legitimate interests of
the Canal-using countries would

be justified. What is important is

SPRINGFIELD, Mo.—Donald
Teague

is

now

affiliated

Federated Plans, Inc.

merly with
Inc.

King

with

Co.,

Reserve

■

The
*

&

Capital
Capital

Paid-Up

E.

HO tvas for-"

Merritt

and Somali-

Protectorate.-

Authorized

Bank

Fund
conducts

Z

£2,851,562

i__£3,104,687
every

description of

1

banking

and exchange

business.

Trusteeships and Executorships
also

undertaken

Laird, Bissell & Meeds

~

£4,562,500

Members New York

Stock

Members American

Stock

120 BROADWAY,

NEW

Exchange
Exchange

YORK

5, N.

Y.

Telephone:
Bell

BArclay 7-3500
Teletype—NY 1-1248-49-

-

—

(L. A. Gibbs, Manager Trading Dept.)

Specialists

in

Bank

Stocks

/

Volume 184

Number 5572




..

The Commercial and Financial Chronicle

..

(1299)

W^V.WAV,

:>>y»y,)*#»;*viv £

>>>">;» Y ri'M t]i.'

lliiillii'llllll'

4

H
s

iMiViM/iiiiiiriu;

Wi

V/*

*£*H iygpyiih

:##X
&S&3

Pv''

IIP*

'

<•

i'M'>li iiiirii'i

ffi
«

ifipil v:'A

ssijii
',/vy; 'y'-'^.f

i-K<Vi>i<v«>i
V/

,

mm

■

'

IM'MMtVt

^
vy

v

*:

i

•

•

:'':.v::':->;:,'v

'

Z'."*"'~

The

pulsating rhythm of International's new

heavy-duty V-8 motor truck engine will be heard
and felt around the world.
For here is the first wide scale application

I

V-8

principle to heavy-duty hauling.
models by IH already are offering

more

ton-miles per gallon, more pdwer

the V-8 power

Three

new

truckers
per

i'

payload.

*

;

This extraordinary motor truck power

was

of

plant

perfected after 30,000 hours in the labora¬

tory. Working

models

were

hard-driven

over

on IH test trucks. More than 100
proved out the new V-8 in 2,500,000
of on-the-job operations—on milk tank runs

1,000,000 miles
truckers
miles
over

mountains, gravel hauling

off-highway,

logging and ready-mixed concrete

on

jobs. One

engine's performance in
a sweetheart!"
Sweetheart and rugged pacemaker, it's a sym¬
bol of the kind of power-progress that for 24

trucker summed up this
his

own

-straight

vivid words: "It's

years

duty trucks.

has made IH the leader in heavy'

;

;

,

.

.,

19

20

The Commercial and Financial Chronicle

(1300)

.

Thursday, September 27,1956

r ess
Continued

from first

well rewarded both

mind.,

west U. S.

page

financially, and in

'
Transportation Network

Vast

as

to West Canada.

It

which

provides

,,

Any autumnal economic snapshot of Canada in
should, we think, stresTfoansport as a major

entering a period of expanding earning power.
Algom, Pronto, Gunnar, all have been able to do
senior financing; and
mergers of a number of

proven ore

1956

In this

motif.

leads off.
of iron

millions of tons
the Great Lakes, of

from Labrador to

ore

bit

of

power," St

hydro-electric

Waterways is

a

to commerce,

cans,

to: be offered

Its location on
peaceful and unguarded international bound¬
ary between
two great nations, dedicated to
democracy and private enterprise, makes, a de¬
lightful contrast to the recent militant Moslem
meddling with another major man-made water¬
way—Suez.
>
•
1 ,

directors

in

areas

centering in
,

Booming Natural Gas Industry
The first started, and first to be
Westcoast Transmission

running

a

completed, is

Company Ltd. which is

to Pacific Northwest

day.

gas

gas to

not

only the star performer, but

one

of the most

distinguished mineral enterprises anywhere.

In
in respect to nickel

second and third positions,

output,.

up-and-coming

are

Falconbridge,

The

Supply Keeps Growing

is, of

course,

fabulous in Canada.

vast

Uranium

Switching to

sections of North¬

Canada

has

Is Now

more

now

in the

age,

edge of

a

qf gre out in British Columbia at
glacier.

Asbestos production still is the world's

Big Business

of

expanding. And
future lies Granduc, with

range

of tons

and best in Eastern Quebec.

solid minerals, uranium in

come

longer

biggest

Consolidated Min¬

ing & Smelting (Canadian Pacific subsidiary) is

and companies
..

Sound Canadian Investments
United States investors

BONDS

STOCKS

can

buy through

us many

Canadian securities which offer sound investment

qualities. Some of these also have attractive growth
possibilities.
Our

complete investment service to United States

investors includes:
V

Markets

> ;

or

net New York markets

DIRECT
...

:

the Montreal and Toronto Stock

on

PRIVATE

WINNIPEG,

WIRES

CALGARY,

TO

TORONTO,

VANCOUVER,

quoted

on

Private

teletype service to

Canada and

V

request.

MONTREAL,

AND

Department with up-to-date informamajor Canadian companies.

Correspondence Department
Y by mail.
V

Stock orders executed

on

V A

and internal bond issues.

-

Exchanges,

A Research
tion

maintained in all classes of Canadian external

•

to

•

to deal in securities

our

^offices

across

New York.

Membership in The Investment Dealers' Associa¬
tion of Canada, and
through our broker affiliate,
membership in leading Stock Exchanges in
Canada.

VICTORIA
•

BELL

SYSTEM

TELETYPE

NY

Inquiries from investors

1-702-3
.

Dominion Securities Corporation
Boston

Philadelphia
London, Eng.
Calgary
Ottawa




Associate Member American Stock Exchange

!'

-

are

invited.

,

WYa.

■

McLeod,Young,Weir& Company
LIMITED

7
Toronto

40

EXCHANGE

PLACE, NEW

YORK

5

Telephone WHitehall 4-8161
Canadian Affiliate

—

and Canadian

Member
Stock

and

Sherritt-Gordon.

the

Pipeline. Ultimate delivery

It will deliver

minerals, Canada still leads the world

production of nickel, with International Nickel

foundland where Maritimes is

capacity of the present line will be 550,000 MCF
per

in

panding production facilities in West Canada.

Vancouver, B. C.; and

Sumas, Washington, where it will deliver

In other

launched in Canada only a few years back with
Belgian capital, has founded out to include refin¬
eries, a broad swath of service .stations and ex¬

650-mile 30-inch line from the Peace

River District in Alberta to
to

Continued Uptrend in Other Minerals

course,

facility at Kitimat, handicapped some¬
what by water
About petroleum supply, it gets bigger every
shortage last year, is zooming
ahead to new production peaks and Aluminium
day and the hottest section in 1956 has been in
Ltd. appears on almost every
Southeastern
Saskatchewan.
major list of
Major companies
such as Imperial, Shell, Canadian Gulf, Mobil "growth stocks" either North or South of the
St. Lawrence.
Oil and Tidewater have been active here, fol¬
lowed by Canadian Devonian, Gridoil, Canadian
Copper, which is frequently found in nickelbearing ores, has been booming, propelled by
Pipelines, Central Leduc and many others. Pro¬
world copper prices which reached a
jections of oil reserves as high as 100 million
93-year
barrels have been made for this single area.
high in January. Since then, however, expand¬
Among the big integrated Canadian companies,. ing production has lowered prices, and most cop¬
per stocks in Toronto have lost considerable
Imperial, of course, continues with top billing,
ground since Spring. Production, however, con¬
followed by McColl-Frontenac and British Ameri¬
tinues to move forward, led by the
big ones at
can, with terrific competition supplied by Cana¬
dian
Chibougamau, and including Sudbury; and New¬
Petrofina
Ltd.
This
latter
enterprise,

To .these

Alberta and Saskatchewan.

these

Aluminum

liquid petroleum arteries, two large-scale natural
gas lines have now been added—again one toward
the West, and the other toward the East from the

booming petroleum producing

due

Petroleum

widely noted (and reflected in the market
shares).

;With

able fuel.

East, and Transmountain to the Pacific, have
common

citizens.

where the line will deliver this volatile and valu¬

burgeoning centers of mineral ac¬
tivity: there's Canadian Pacific's new "Empress
of Britain"; and a brand new fleet of turbo-props
on
Canadian air lines.
Of unique significance,
however, are the pipe lines. The 1956 expanded
through-puts of oil on Interprovincial running to

their

Lorado and a reported $76 million
negotiation with Stancan, El Dorado
Mining and Refining (the government agency)
has issued contracts or letters of intent
(running
to .March 19.62} in ;the order of $1%
billion.
Uranium is no longer a prospector's
plaything or
a
geiger gimmick—-it's big business in Canada.

made for 51% of the stock

Canadian

the
$60

million, to

in Canadq; and for a majority of
be

pattern of

£ohe under

bring West Canada's gas all the
way from Winnipeg to Montreal—2,240
miles
altogether. The earliest beneficiaries ■ will be
Winnipeg and Western Ontario, But the line, if
history is any guide, will usher in vastly ex¬
panded industrialization in the whole -wide -zone

accommodate

of

to

re¬

$80 million; Arrange¬

some

w eye

was

a

consolidation expected to continui.
Including
recent contracts of $242 million to
Northspan,

Parlia¬

provisions this king-size transport project is now
on its
way—a S365 million enterprise that will,

Speaking of transport, the Canadian railways
have been busy running out several hundred
miles of new lines, for the most part to reach and

advances

and (2) to start it, the Dominion

ments, however,

industry and trade.

been

doing politically and financially.

quired to advance

Lawrence

mid-century Can^ian .stiipulant

the

the

more

are

companies into Rio Tinto Ltd., and

Northspan Uranium mines have set

a

ment had quite; a debate on the line principally
because (1) the ma j or. promoters were Ameri¬

prairies to Europe, expander of

6,600,000 barrels of cement in the building,

creator

stockholder, took

bodies, government contracts, and

the Hirshhorn

East, Trans-Canada, of which
-

the St. Lawrence River and lake ports, consumer

of

the

Canadian Delhi is the largest

Future transporter of

wheat from the

line to

The

Lawrence Waterway

the St.

area

only three or four years ago were hope¬
drilling and exploring, now boast large

fully

lion c.f. of gas already located in West Canada.
Subscription to Westcoast units made the under¬
writing an outstanding success; and the units
went to a 30% premium in a matter of weeks. YS

of

peace

'

^

well

as

part of the needed outlet for more than 19 tril¬

Toronto, Montreal

Exchanges

Investment Dealers Since 1921

Montreal

Winnipeg

50

KING

STREET

WEST, TORONTO, CANADA

Vancouver

Montreal

Ottawa

Winnipeg

London

Hamilton

Vancouver

Kitchener

Quebec

Sherbrooke

Windsor

New York

Halifax

Calgary

Volume 184

the

big

Number 5572. ..The Commercial and Financial Chronicle

in

one

zinc

and

In

lead.

iron,

A

<

Steep

Fundamentally Sound Economy

Fund, established

Rock (on Lake Superior),
Hollinger, in Labrador, * ; V It is only academic to observe that all this in¬
and Canadian Javelin in Newfoundland
dustrial and commercial
present
progress in Canada is

greatly enlarged capacities for iron ore; and gold
headed by Kerr Addison and Giant Yellowknife
are
"revving" up output and awaiting the day
when the official price of
gold moves up from
$35 U. S. dollars, to a figure more related to ris¬

ing costs of production.
Huge New Cement Production Envisaged

,

.

Canada used about 27 million barrels of cement
last
of

year—but it

that

total.

In

of

internal

extensive

its

%; Canada

building construction, highways,;
factories, etc.—Canada has been, in fact, short;
projections

see

of

Hence today we

decade.

a

barrels

million

10

some

the

Statesv in

States

corporation). Trusts which presently make
sale of shares, but whose issues are traded

no new

over-the-counter would include New York

Fund

of

Canada

Capital

Ltd., Scudder Fund of Canada

Ltd., and Templeton Growth Fund of Canada Ltd.
The

life, and
a

opportunities for increase in capital under

sheltered tax arrangement,

supervision

plus the quite expert

of

portfolios composed of thriving
an attractive
Canadian equities have caused Canadian trusts to
investment glimate that * investment
companies
emphasising .Cahadiari securities h5ve flourished.: be eagerly sought by those investors who prefer
to delegate to professionals, the responsibilities
This, of course, has been true of those domiciled
of security selection and management. '. ,
in, the United States as well as theib Canadian
•
,

demands—for

of cement for almost

from

ordinary
especially in annuity contracts.
%;•/.

imported two million barrels
view

and

•business

1932, with its shares sold

in Canada. Other open-end funds selling
shares currently include Canada General Fund,
Ltd., Keystone Fund of Canada Ltd., United
Funds Canada Ltd., Investors Group Canadian
Fund Ltd., and Canadian Fund Inc. (a United

a remarkably
broadspread system of highly soivent. and profitable branch
banking; expanding
consumer credit facilities
through such companies
as
Industrial Acceptance and Traders
Finance;
and seven big stock life insurance
companies that
not
only serve Canada well but are efficient
enough to 'glean important" (and competitive)

t

in

only

geared to sound Dominion finance,
efficient

21

(1301)

of

has^also provided such

„

added

'capacity to enter production within the
-counterparts. .A very-special Advantage of the
next 15 hionths-r-the latest mills being Lake
Canadian investment trusts, for United States
Ontario Cement (J.40 miles West of Toronto) and
citizens, is found in the-tax angle. Canadian funds
La Farge Cement in British Columbia.
are not
subject to capital gains taxes and almost

Broad Market Facilities

Investors

for

/

.

Finally,

from

apart

elements

investment

such
as

requisite

sound

corporate

balance

sheets,

alL dividends from Canadian companies are also
exempt from tax. These funds can thus receive

good earning statements,; and fair dividend poli¬
cies, there has to be an effective mechanism for

hydro-eiectric capacity presently developed, will

regular income, cash in on capital gains, accumu¬
late, retain and reinvest funds with virtually no

spend $634 million

tax burden. An American stockholder has

brokerage and investment banking., Canada of¬
fers these in size, quality and depth.
Several
major investment firms underwrite Canadian
capital needs from offices in Montreal, Quebec
and Toronto (and dozens of branches); whilst the

Water Power and Paper

In water power,

1956.

k

<

-

Canada, with only 25% of its

electric

on

stations in

power

Among the biggest hydro companies is

Shawinigan Water and Power with $48 million
net sales (1955) and a

pansion
The

program

common

$95 million three-year

ex¬

running till the 1958 year-end.

stock here, which earned

$3.48 last

to- pay as

he goes along—only when he sells his
stock. Then Canada will retain 15% of his share
of the net
(regular income

in the past few years, plus
kind to the upper income brackets,
have boomed the Canadian investment
companies.

brokerage facilities are most extensive. More
shares change hands each year on the Toronto
Board than on any other share exchange in North
America.
The exchanges in Montreal provide
major markets for a large number of top flight
equities; and there are also Stock Exchanges in
Calgary, Winnipeg, Vancouver and Edmonton—
making for the most part markets in regional

There

securities.

accumulated, but
gains in capital). The tax for the
American is then merely the U. S. tax on
capital
gain on securities held for more than six months.

nothing

'mi''

year,

is

an

as

course, a

Canadian major, and such

International, Abitibi Power & Paper,

Consolidated

*

Paper, Howard Smith, Ontario &

dian

Si

'

'

*

"

share

market

tax features

are

so

nine

major

vestment

all

lion. The earliest

new

a

'

'

Minnesota, Price Bros, and St. Lawrence, have
gained

"

on

The excellent advances recorded in the Cana¬

authentic utility blue chip.

Paper is, of
leaders

.

tax

no

stature and earning power in 1956.

assets

ones

with combined

in¬

today of well above $300 mil¬
one

was

Canadian

" '

i!.' i

k

•

•• *

he

made

Continued

Investment

£V

^

.

should

likewise

Mention

im-

of

the

on

page

23

/ /

We like

'f.

doing
with the Royal

L. G. BEAUBIEN & CO.
Stock Brokers

••

-••yiTvT

fT-

I
\

Members Montreal Stock
and Canadian Stock

7*7;

*'

777

^

Exchange
"On-the-spot" information

Telephone* PLateau 2171

business opportunities

they

221 Notre Dame Street West,

serve

on

in the

areas

is available through

the 790 Canadian Branches of the

MONTREAL I

Ottawa

''

Exchange

Royal. This familiarity with

Paris

Brussels

:

specific territories is available to
American businessmen who want
data

L G.

BEAUBIEN S CO. LIMITED

IB

Investment Dealers

o

j

The

Members Investment Dealers' Association of Canada
._V.

©

Sales

•

Information
raw

Shawinigan Falls

Hyacinthe

■« « '•

•

m

Trois-Rivieres
St.

teal

• Credit reports • Factory sites

v-

1

MONTREAL

•

!

O

Quebec

Royal offers these services:

iri
.

representation

.'•>>• v.-/"%;*/' r<><'

; *

■

I,

V/r*-

*;

•

7-

7'

rue

'

*

.

,

£

1 "

;r.

7

f

Richepance

Bahamas,

the

860

Branches

British West

in Canada, Cuba,

Indies, Central and

South America, New York, London and

Paris.

t

OF

Branch at St. Pierre

CANADA
/twicca

i*
;

f

(Territory of the Islands of St. Pierre and Miquelon)




Office in Montreal.

ROYAL BANK

-

PARIS

v7,

r.

THE
Over

>

■

Development Department,

L G, BEAUBIEN

between France and Canada

.

power,

transportation

'

..

Financial operations

i

labor,

anywhere in Canada^

Sherbrooke

at Head

'*<

on

materials and

Write Business

BANQUE

of this

fast-growing country.

r»

-

concerning economic and

other conditions in all parts

TOTAL
EXCEED

ASSETS

New York

$3V4 BILLION

Agency—

68 William

Street, New York 5, N. Y.

'

V

Chicago CorrespondentNorman C.

Allingham, 231 So. La Salle Street

'

.1

(1302)

The Commercial and Financial Chronicle

;■.V•'%

Continued from page 3

in

instances

some

to the

mon

fairly

.'-y:,

<

Authoritative

Canada's Mineral Producing

ing

Industry Forging Ahead
throughput to California to 70,000
bbls. daily by fall.

line

Gas

be

completed

by

next

40

new

plants

struction

mills

are

or

at

under

least

in

least

additional

an

look to be

25

of the old established and
most

Plans

ada's

to complete

were

what

the

extensive

Peace

River

gas-

est

fields will be

piped down through
British Columbia for distribution
in

eastern

latter company is currently com¬
pleting a major West Coast pipeline distribution system and will
obtain its gas supplies both from
the San Juan field in New Mexico

and the. Peace River field in Can¬

ada, via the Westcoast Transmis¬
Co. pipeline.

Canada by early

Glowing Picture

poration in the United States. The

sion

pipeline in the world to
1953.

in

Canada.

The

The Canadian

of

some¬

gold
camps,
districts across the

uranium

production

of
Blind
River where mills to handle 33,400
tons

daily

struction

leased

/■

Along the Marion River belt, in

.

the Northwest Territories and not
far

too

the

from

either under con¬
have been granted the

go-ahead signal for mill
tion.

Some

being sunk
shortly.
in

well.

as

•

v

.

,

,

Active

16

shafts

or

will

Copper

uranium

.

•

.v

Developers

planning

is only
phase of Canada's tremendous
mining
boom. The
copper
developers are just as active. Pro-,
one

prepara¬

either

are

be

But

.

•

.

are

or

started

>,

*

underway
in
most
provinces with the greatest con¬
Heavy activity is also apparent,
centration
of
work
p e r h a p s
the

Bancroft

grams

area

of

are

Ontario

confined
to
the
Chibougamau
been
district of Quebec, lying some 200
Dyne, Faradav, Bicroft,
miles north and west of ChicouGreyhawk and Cavendish Ura¬
timi, a deep-water port.
nium.
where

contracts

have

awarded

Impetus in Uranium Production

The
Chibougamau district is
experiencing its most ambitious
of exploration and develop¬
ment this year even though the
area
first yielded discovery of
copper over half a Century ago. 4

uranium

Straight

the

from

mine

adjoining., The big J
Guiinar
mine
is
operating^ at J
capacity on ore from its open pit
as
well
as
making satisfactory
progress on shaft sinking.

Ontario, of

Completion of government
In Northern Saskatchewan,
contracts totalling $1.4
billion—likely $1.5 billion before Lorado Uranium Mines will soon
Mining
Eldorado Mining & Refining closes be erecting a custom concentrator
The picture in straight
mining
off negotiations—has
given tre¬ to treat uranium ores from its own
is just as glowing and we Cana¬
mendous
impetus
to
Canadian properties as well as from nearby
dians in our lifetime have never
mining and before long should properties
controlled
by
other
before witnessed
the flurry of place the nation in the forefront
corporations. The Crown-operated
of the uranium producing world.
expansion evident today. And this
Eldorado Mining & Refining is ex¬
Granting of additional uranium
"excitement" covers practically all
its
own
contracts now suggests Canada's panding
concentrating
our provinces and takes in a wide
uranium production will
quickly facilities to meet the growing
range of the metals common and rise to an estimated
$400,000,000 needs of its own mine plus addi-

the

province and lor sale to
Pacific Northwest Pipe Line Cor¬

,

gas

points

many

underway

millfeed

tional

Radiore

big Yellowknife
job of all as it is likely the district gold district, Rayrock Uranium
will
finally win the honors as Mines is erecting a mill to start
being the world's greatest center servicing its uranium contract. In
of uranium productivity.
all likelihood Rayrock will also
So far it looks as though 10 handle high-grade ore from the
companies will be sharing in the property of an associated company

and, outside

fast-growing gas industry. the 575-mile stretch from Eastern
country are witnessing new shaft
Alter years of planning two
major Alberta to
Winnipeg, Manitoba, by sinking programs to win longgas pipelines are now under con¬
December. But the United States untapped ore for Canada's econ¬
struction.
These lines will open
steel strike has disrupted the flow omy.
up a new era for natural gas in
of big inch pipe from U. S. pipe
Promise of future growth of
Canada by providing access to big
mills. The company will continue Canada's
mineral productivity can
waiting markets.
construction as long as it can this best be
gleamed from the fact that
On the West Coast a 650
mile, year; Plans are to start on the the 40 mills planned for
produc¬
$155 million gas pipeline is being second phase of the pipeline
job tion, coupled with those reason¬
built from Fort St. John in north¬ next
year—the stretch from Win¬ ably certain in the non-too-distant
western
British
Columbia
to
a
nipeg down to Ontario. If every¬ future, represent some
65,000 tons
point on the international bound¬ thing works our right Alberta gas additional
daily to the nation's
ary near Sumac, B. C. Gas from will be flowing
through the long¬ mill capacity.

the

dollars—is

course, is undergoing the greatest
mine
preparation - mill building

"depressed"
of

four

of

Blind River district of

pretty sound prospects

struction.

Industry

at

various

properties

for future production

construction—costing

millions

con¬

stages of planning at present. At

The western phase of the TransCanada pipeline is now under con¬

Expansion is also true of Can¬

Mill

concentrat¬

or

now

fall.

,

Fast-Growing

will

quart^^ ^follow¬
lengthy' research,
estimate

ing
some

Thursday, September 27,1956

...

i

•

annually, or an amount close to
25% of the entire 1955 production
of our mineral producing industry.

uncom¬

mineral table.

v

wave

Last year's marked expansion and

improvement in both

vVp'

and

reserves

in

grade
of
ore
have
raised
Chibougamau to big stature which P
undoubtedly will see the camp
develop into one of Canada's main

producing

copper

of

camps

.

Yv-Y.. '•

the

future.

At present there are four pro¬
which include the pioneer

ducers

Opemiska
in

J. BRADLEY STREIT & CO.

Copper

which

Mines

Ventures

Limited

Ltd.

5

and

Hoyle Mining Co. Ltd. play an
important role through stock in¬
terests.

LIMITED

Campbell Chibougamau, located
in

Af EM BERS
The Toronto Stock

:

Exchange
)'■ ■

V1"'-;' "'t

:,<

.■

*

Edmonton

Stock

...

YY;;,.v

?

&S
.

V

■

,

'

),

\ f| J'?
^4-1'

,,

'''-'"f

v

r

;

.

DIRECTORS:

(n >i ir iC

Bradley Streit

*

Douglas Streit

*•

Joseph A.: Hackett

property. Chibou¬
Explorers > is operating a :
daily capacity mill on an
entirely separate mineralized belt y-

"*

C; William Streit

500-ton

Harry J. Shanacy
a

J#

'

,

A-

miles to the southwest.

some

Wilbert B. Bell

-

*

Chibougamau Camp Ore Potential
The

80 RICHMOND STREET WEST

potential

ore

>

Chibougamau
camp
materially
over
the

EMPIRE 3-7477

^

t

>^F0RONTO, ONTARIO

tirely

new

Some

«

rather
made

ore

an

en-

Narrows

Dore Lake
ture

CORPORATION LTD.

and

several old and

associated

McKenzie

new

with

the

fault

along
The changing ore pic¬

-

the

apparent

need

for

smelting facilities recently
resulted in the completion of a

$5,500,000 financing deal between
the J. Bradley Streit-J. A. Hackett
interests of Chibougamau financ¬
ing fame and the H: W. Knight
father
with

RECENT UNDERWRITINGS:

and

team

son

Eastern

associated

Mining & Smelting

Corporation Limited.
Eastern

CIIIBOUGAMAU JACULET MINES LTD.




J. BRADLEY

COMPANY LTD.

of

MIDCON

OIL

&

GAS LTD.

at

Chicoutimi.

assured

concentrates

projected smelter-refinery
Initial

installed

capacity is expected to be 200,000,000 lbs. copper and
15,000,000 lbs.
nickel annually. Up until the
entry
of

the

Streit-Hackett

team

into

STREIT, Secretary

Eastern financing

plans had been

to

STREIT, Secretary

RICHMOND STREET WEST

now

copper

its

properties
associated with

treajE?

Mogul

EMPIRE 3-1451

TORONTO, ONTARIO

by
Mining

The

from

ores

controlled

ited.

80

is

needs

proven

adequate

for

STREIT, President

C. WILLIAM

r

for

IIOYLE MINING

JOSEPH A.
HACKETT, Executive Vice-President
J- DOUGLAS

Mining & Smelting, al¬
engaged
in
developing
34,000 HP on the Chicoutimi River
ready

FROBISHER LTD.

•

copper

Mining and Industrial Financing

CONSOLIDATED SUDBURY BASIN MINES
LTD.

4

.

startling discoveries

on

properties

COPPER RAND CHIBOUGAMAU
MINES LTD;

•"

blossomed

.past; few "

body
through "
surface "diamond ' drilling and is
now
expanding its 800 ton mill.

were

Canadian

"

the

of

months. Opemiska located

v

;

s

Island

gamau

\

.4. A.:

J.

the

Campbell also treats ore from the
leased portion of -the adjoining
Merrill

J.

is

area

Procurement
Agency,
Washington, covering 63.2 million
.lbs. of .electrolytic refined copper.

Exchange

■

f" > » ! „
Vr..!,.-,

Lake

Materials

•

-%

**.

Dore

May, 1955. The company is ser¬
vicing a contract with the Defense

Calgary Stock Exchange

Canadian Stock Exchange

the

camp's largest producer at present
having reached production with a
2,000 ton daily capacity mill in

or

latter

Corporation
is

Lim¬

rapidly ex¬
panding mining-holding company
directed by the Knights and con¬
trolling large nickel and copper
a

reserves.

The

Dore

Lake

sector

Continued

on

—

un-

page

25

%

^

Volume 184

Number 5572 .The Commercial and Financial Chronicle

Continued from page 21

-

of

the

Investment

Dealers'

Association

; Kidder,

Glance

running from 4-

five years to past a century and a quarter. We
salute Canada and respectfully submit that being
a

shareholder in her solid; varied and well man-

-

Z;

American

fering

to

Z$2.50
all

Insurance

1 'fo

City,

to

con-

with G. F. Rothschild & Co., Inc.

share

after

basis

exchange

conditioned upon
at least 1,400,000
American

f •«'.

certain

i;

j,

ceive

a

cents

Automobile's

Cash Divs.

Appro*..;
% Yie'd

Including
No. On-

Extras for

Quota-

secutive

12Mos.to

Ba*ed

rti

retail

through

Aluminium

i."

&»•:

•

...

•

.*5

*

incorporated

seeking long-term growth possibili¬

(1) investments in the resources •

Co.

of diversi¬

of Canadian stocks and (2) rein¬

R

Prospectus may be obtained from
•':

consists

authorized investment dealers or

the

exchange,

COMPANY

VANCE, SANDERS &

are pres¬

Providing that

"v

~

Ill Devonshire Street
Boston 9,

NEW

york

61 Broadway
'

the

>,

^

"
\

•

.-

Mass.
LOS ANGELES

CHICAGO

.

South I.aSalle Street

izo
,•

'»

"'

\

.

>

•/

••

Seventh Street

Xio West
U.

F

i

■

\ VK

\
-

re¬

special cash dividend of 20

per

will

have

shares

1956

1956♦

the. 20%

of

of

outstanding

ranging

3,800,000 to

from
a

7%

ber of shares

5.0

shoes

a

FIRST

divi¬
-Uy

IN

CANADA

capital

minimum

maximum of 4,-

150,000 depending

Stores,
0.40

stock

dend, The American Insurance Co*

on

Prymts to
June 30,
June 30

June 30,
1956

23

f.

vesting all net earnings at low tax cost.

p.m.

*

tion

:

J t Lit'

stock dividend

—Canadian $ §—

U-

Insurance

of

pavment

distributes

U* *.!>.

outstand¬

share on the 2,000,000
presently outstanding and
of 20% thereby
increasing the shares outstanding
prior to the exchange to 2,400,000
shares.
Thus, after • consumma¬
tion of the exchange offer and

10 to
128fYears

and

(1954) LIMITED

shares
a

Makes

" -.1

fied holdings

American Insurance stock will

Have Been Paid From

.Ltd,

*

6,000,000 shares of capital stock

mation

Agnew-Surpass Shoe

■';>

'

ties through:

of shares but prior to the consum¬

DIVIDENDS

I

in Canada,

the exchange offer is accepted by
holders of the minimum number

CONSECUTIVE CASH

.

shares (80%) of'

ently outstanding.

On Which

.■1

and industries of Canada by means

<?f which 2,000,000 shares

Common Slocks

'

A mutual investment company

.Authorized capitalization of The
of

was ~

ad¬

" ./

stock, expires at 3:00
(CDT) on Oct; 15, 1956.,;. ;;

Divs. Paid

«

offer, which is
the tendering of

ing

American

Gold

*

v.J..

justments in the capitalization of

.

;

...

/>

upon

the

num¬

exchanged.

1

At June 30, 1956 on a combined

chain

132y2

-2.25

18

Ltd.

basis

1.7

Largest producer of aluminum

the

assets

of

American

American

and

surance

In¬

Automo¬

ingot in the world

bile
♦

1

Quotations represent
price,;prior to, that
June

infiM

§ Add
♦

30,

June

1956

Bid

*>-<,-■

1956.

current Canadian

Dividend

30,

date.'

jv

and

sal° prices or the last sale
ask quotations are as of

totaled

holders

$319,650,594,

surplus

policy¬

$119,601,259,

was

and net premiums written for the

•

Exdiange Rate.

12

paid in U. S. Currency.

Continued

on

page

24

months

ending June 30,

totaled $168,710,591.

-

j

-

1956

.

Incorporated 1932
Calvin Bullock, Ltd.

Templeton Growth Fund of Canada, Ltd.

;

"

507 Place D'Armea
■■

.

•'

-•••■

f

Montreal

A management-type investment company
to

provide

a means

in the securities of

organized in Canada in 1954

by which residents of the United States
companies deriving their income from

side the United States,

may

invest

sources out¬

particularly Canada, and obtain certain tax

The Fund's investment
soundness and
the

policy is founded

long-term growth

on

prospects

development of the vast natural

FIRST
IN THE UNITED STATES

benefits under the laws of Canada.

its belief in the present

of Canadian industry and

resources

of Canada.

White, Weld & Co.
40 Wall
Boston

•

Hacerstown

London

Minneapolis
Zurich

Incorporated 1952

Philadelphia

San Francisco -;•

Los Angeles




Street, New York 5
Chicago

:

New Haven

Winchester
Caracas

and

Secrepreviously

tary. ~ Mr.

Automobile"

Insurance capital stock on a share
for

President

Gold,

Wall

is of¬

outstanding

1,750,000
American

of

American Insurance.

Years O'h

Jack

Treasurer; Irving Kastner,

37

v','

I

the

The

B

duct a securities business. Officers

k.

-

."<r?'

23

at

offices

York

New

v,

t

Co-, Inc. has been

exchange shares of its
value capital stock for

par

of

shares

I

lllliilS usted|I||I1ISE

n

;

Peabody & Co.
Dealer
Manager

stock.

aged enterprises may add- zest/and serenity to
your life, increase your income, and exalt your
solvency.
TABLE

f

with

Kidder, Peabody & Co. has been
named by The American Insure
ance
Co.
as
dealer-manager Z to
form a group of soliciting dealers
for soliciting tenders of American
Automobile Insurance Co. capital

The final acid proof of Canadian solvency and ^

payments

r>'

"

corporate profitability, however, is found in the.
appended list of companies with fine records for

.constancy of. dividend

Street,

Co. Stock Solicited
-Named

,

formed

of

Toronto and Montreal.
a

*

T

IrWs £,a&e

Automobile Insurance

Canada; with the interdealer activities being gov- "'
erned by Security Traders Associations located in

Documentary Proof at

I. W. Page Co. Ooens

Tenders of American

portant over-the-counter and placement machin- \
ery available. This is largely provided by mem- "
bers

(1303)

Calvin Bullock, Ltd.
One Wall Street
New York

,

24

The Commercial and Financial Chronicle

(1304)

Continued

Schmidt To Address

from

PHILADELPHIA, Pa. — Miss
Joanna R. Wajda, Chairman of the
Committee

delphia

the

PROSPERITY
Cash Divs.

first

W

fully managed Canadian Investment Company

d

e

seeking long-term CAPITAL GROWTH
under Canadian Laws

Andian National
Operates

>V

Prospectus from

esday,

crude

your

local investment dealer

%

^

50

* i

-'

v-i

', '*

'

'

'

^'

1

\1 ^

✓

£

v§!&l

''

^

Newsprint and

Holding

will

Walter

Walter

Argus

&

Hear

'L-i.

'

y«:; >, ./•

Club

Corp.,

on

will

Oil & Gas

hold

Yacht

Boston

:

its

first

Club

y

rJ" ^

overseas

of

Gas

a

Copy of Report

to

Stockholders

on

request.

well-known

"•:

602

L
^

NEW

YORK

•

;■

'•■'■Iri

.

? u,

' •'

(

5,

N. Y.

......

di¬

the

„*• -

rs,-<

0.72

*

.

y

'>13%

,

y y -''vyy

0.16 "

5.3

;
-

.

y K2 :;y

2.20

'

7.3

0.85

12 w.

7.1

1.55

50%

3.1

2.00

>

-

55%

3.6

.r.-fV-;

branches

128

and

■

-•

;

agen-

the world
on

page

SCOTIA__

on

29.

124

1

|

page

y-

;i"r

-\ -Vs,' m'm;'.'.

26*

75

1^5

42

26

4.00

b40

17

0.40

%V2

5.3

34

0.10

7

1.4

76

2.00

ZX
10.0

Stationery and printers' supplies

Beatty Bros. Ltd
barn

and

household

stable

equipment,

etc.

Belding-Corticelli Ltd.

CHICAGO, 111. — The Invest¬
Analysts Society of Chicago
will hold a luncheon meeting on
Sept. 27 at 12:15 p.m. in the
at

•

Barber-Ellis of Canada, Ltd,_

Chicago Analysts to Hear

Room

3.9

Operates 247 branches in Canada

Manufactures

Adams

10

Nationale

—

Makes nylon,

silk and rayon
threaas for all purposes

ment

Leading Stock and Commodity Exchanges
WALL STREET

3.8

of. automo-

See Bank's advertisement

•

pumps,

42

,41

y 16

Operates .450 branches and •- subOffices throughout the world

equipment,

Members Yfew York Stock Exchange and other

1.60

V

Banque Canadienne

Hunsaker is
a

distributors

BANK OF NOVA

Industries

speaker and

i

-See Bank's advertisement

•

panies.

:'V

^21

tive electrical carburetors & auxil-

Operates

;

rector of several oil and gas com¬

Carl M. Loeb, Rhoades & Co.

,0.80

5.3

'

gold producer

iary equipment' *

*

Mr.

the title subject. Mr.

Ontario

cies throughout

Partner, of Colo¬
Management Associates and

Hunsaker, assisted by
Theodore W. Noon, Jr., Geologist,
and
Edwin
Webster Hiam,
Gas
Utility Analyst, of Colonial Man¬
agement, will conduct a panel on

securities.

11%

f

BANK OF MONTREAL

r

in Canadian and

«

•

Hunsaker, Jr.,

Fund.

resources

0.60

19

Service,

-

>

Vice-President

of

3.8

Co., Ltd.,

Auto Electric Service Co. Ltd.

'-v

_

Company with $28,500,000

12%

business In general hardware

*

Rowes

on

Corp., Ltd

Aunor Gold Mines Ltd

This year, the Club is fortunate
to have as its speaker, Jerome C.

Investment

0.50

'

Large wholesale and retail

dinner*

Wharf.

nial

co.—chiefly

Ltd

Ashdown Hardware

meeting of the Fall Season at the

An

4.3

12

Ltd.

operating

CA J. H.,

BOSTON, Mass. —On Wednes¬
day, Oct. 3, the Boston Investment

emaefa,

46

\ .*

'

..

a

2.00

»

:

Mining <& milling of asbestos fibre

-

fv

11

19

products

co.—manufacturing &
mercnandising interests

Asbestos

:'

5.8

Investment
<.

Boston Inv. Club To
'■

6

Newsprint and allied products;
also mining interests

Schmidt

A.

Schmidt,

Congress /Street, Boston 9, .Massachusetts

*0.35

10

allied

Anglo-Newfoundland Devel¬
opment Co., Ltd* "Ord."__

A.

Poole, Roberts & Parke and the
topic is "The Place of .the Invest¬
ment Business in the Economy."

^

1956'

in

Anglo-Huronian

be

Keystone Company of Boston

"

'

1956*

A','interests in/Can. gold mining

Schmidt of

Tlie

June 30

17

line

Anglo-Canadian Pulp and'
Paper Mills, Ltd.
.y.v

the

speaker

or

on

Paymts. to

30,

13

Corp., Ltd._

oil pipe

Fidelity-Phil¬
adelphia Trust

*j.?t

■

1956

tion

June

Based

Colombia, S. A.

Company. The

TAX BENEFITS

30,

% Yield

Quota-

—Canadian $ §—

on

of

June

Divs. Paid

3,
1956,
the Board¬

room

12 Mos.to

Years Cash

Educa¬

n

Extras for

secutive

\

Oct.
in

Approx.

Including
No. Con-

tional meeting
of the current
season

certain

^

In¬

an¬

nounces

olC ana da, Ltd.

and

Y

.

vestment Women's Club of Phila¬

Keystone Fund
A

the

of

Thursday, September 27,1956

CANADIAN PROGRESS AND

Phila. Invest. Women
Education

23

page

...

Bell Telephone Co. of Canada
Most
in

Midland

important

Ontario and

46%

4.3

telephone system
Quebec

.

Private Wire System to Branch Offices, - Correspondents and
their connections in 90 Cities throughout the United States

Hotel.
dent

John L.

of

McCaffrey, Presi¬

International

♦

Harvester

y

&Z222ZZZ&ZZZZZZZZZZ^ZZZZZEZ&Z&Z&Z&222ZZZZZZ2ZZZZZZZZZZZ%

ing

regarding

the

operations

Quotations represent June 30, 1956 sale -prices or the last sale
prior to that date. Bid and ask .quotations are as of

?; price
y.June

30, 7956.=.
• ,
5 Add current Canadian Exchange Rate,

Company, will address the meet¬
of

.

;:y.-

w

•

4

'

b Bid.

the company.

a

Asked.

60 years

h over

'"^.SftWSUN
•MPANirOFCA^
jlic'es

Th e

services of this firm include

complete brokerage facilities for Canadian

dealers and brokers interested in securities traded in the United States.

and group

We maintain

a

direct

srtificates in
ountries for"»n
mount

,ne.half

of Six

and

private wire

James Richardson

Billion

&

.

to

Sons

.

dollars.




and offer

to

United States dealers and brokers interested in Canadian

secu¬

rities similar facilities in Canada via this wire.

&
•"

yy'v:-

e

*

*:'

.

_•

'

&

Members, of the New York Stock Exchange
Members of the

14

WALL

STREET

Toronto Stock Exchange
NEW

YORK

5, NEW YORK

Volume 184

Number 5572... The Commercial and Financial Chronicle

,j

Continued from page

Continued

24

CANADIAN PROGRESS AND
PROSPERITY
tion

% Yield
Based on
Paymts. to

June 30.

June 30

No. Con-

Extras for

secutive

12 Mos. to

Years Cash

June

;,

1956

1956 ♦

—Canadian $ §—

v

2.00

0.10

12

Belleterre Quebec Mines, Ltd.

30,

1956

Divs. Paid
,

Quota-

wool felt

7.3
",

hats

.

.

Brazilian Traction, Light and
Power

Co., Ltd. "Ord."„_

0.50

16

utility interests in Brazil

Diverse

British American Bank Note
Co.

22
bonds,

Petroleum production,
distribution

duction

42 %

*/• 0.85

47

2.0

refining,
.

-

,

British Columbia Power Corp.
Ltd.
controlling B. C.

and

Dividends From 5 to 10 Years Appear in the

Starting

40

Page

on

Two

Columbia

Telephone

Brock

4.3

46%

privately owned

telephone system

11

0.40

30

20

(Stanley) Ltd. "B"—

81/2

4.7

1.80

36%

4.9

1.50

CO CO

5.3

Laundry supplies, hardware,

plumbing supplies, etc.

Building Products Ltd
flooring

and

insulation

Burlington Steel Co. Ltd
Steel

rolling mill &

related

10

12 %

f0.65

5.3

Meat, lards, butter, poultry prod¬

variety
cotton products

of

linen
-

-

Calgary & Edmonton

,

t

"

oil

gas

0.10

26%

3.8

26

and

1.10

23%

4.7

drilling rights

Dominion

&

and

beet

Quotations

price

completing

sev¬

prior

General

Record

Over

and

Besides

Chibougamau there are
other districts of heavy
copper interest.

many

Coldstream

shaft sinking.

above

created

Exploration

:

Copper Mines

has

in

the

marked

Kashabowie

interest

of

area

Ontario

sinking starting construction of

shaft

and

underground programs gen¬
eral exploration in Chibougamau
has reached a record peak this

a

mond

ton

daily capacity mill to treat a
large copper tonnage. .Activity on
other properties is at a high level.

Approximately 65 dia¬
drilling rigs are engaged

Continued

on

page

Campbell

Canadian
Investment Securities

Mines which

producers.

There

have

been

put

are

A. E. Ames & Co.
Limited

UNDERWBITEBS AND DISTRIBUTORS

A. E. Ames & Co.

down

three distinct orebodies

Members Toronto and Montreal Stock Exchangee
OFFICES IN 14 CITIES IN CANADA AND ENGLAND

collectively represent 10,000 tons
per
vertical foot with
grade ranging from 1.25% copper
to 2.8% copper average, depend¬
ing on the orebody. Milling is
suggested in terms of a 5,000 ton
daily capacity (minimum).

A. E. Ames & Co.
Incorporated

Boston

New York

The

adjoining Chibougamau
Mines is sinking a fivecompartment shaft to 1,000 feet to
two

known

ore

sugar

Sugar

refining

represent

prior to
1959.

that

June

:

BUSINESS ESTABLISHED 1889

bodies.

30,

date.

occurrence

is likely a
required. The
occurrence, outlined in two
holes,
is * considerably
highergrade
and
could
conceivably
change the future profit potential.

1956

Bid

sale

and

ask

prices or the last sale
quotations are as of

30,

and

maintain

Besides

page

26

FOUNDED 1885

.•

£

BROKERS

New

their

in

entity.
Copper Cliff is preparing to shaft
sink on one of its properties.

b Bid.

on

Cliff

Copper

Royran have been ^ndiACtiftg pro¬
grams on i holdings kept
out of
consolidation as both companies
still

5 Add current Canadian Exchange Rate,
t Adjusted for stock dividends, splits, distributions, etc.
t Inactive issue, no Exchange trading,

Continued

^

new

Both

its

listed, unlisted securities

own

main

and commodities in the

operation

United States and Canada

Campbell Chibougamau is propos¬

THOMSON & M^KINNON
11 Wall

>

CANADIAN STOCKS & BONDS
on

/£,■:;

CHICAGO

46

Orders Executed

all Canadian Exchanges at Regular

or

Street, New York 5
INDIANAPOLIS

TORONTO

;

offices in the United States and Canada

MEMBERS NEW YORK STOCK EXCHANGE

AND OTHER PRINCIPAL

SECURITY AND COMMODITY EXCHANGES

7

Commission Rates

>^^_

%

Traded in New York in

United States Funds

Over

Fifty

years

to Canadian

68

Toronto

Young Street

Offices located at
360 St. James St. West

MONTREAL

TORONTO

by private wires with" bur Main

Montreal Stock Exchange

Stock Exchange-

Canadian Stock Exchange

of specialized financial service

brokers, banks and institutions

Branch

CHARLES KING A CO

Connected

American Stock Exchange

and Branches-at

Craig

St.

61

W.

NEW

MONTREAL
UNiversity 1-5886

Broadway-

YORK

WHitehaU 4-8974

Office

Boston, Mass., Washingtonr D* ~C.,

Bloomfield, N. J., Princeton, N. J;, and
455

Oil City, Pa.

Royal Bank Bldg.

TORONTO

&

EMpire 4-6407

CO:

~

Established. 1842

Direct Wire




Connections

-

TORONTO, NEW YORK, MONTREAL

by

1,000-

summer.

second shaft will be

Corp.,
20

June

of

entirely new ore
3,500 ft. north and it

Alberta

Cane

*

underground-pro¬

an

;

Co., Ltd.
♦

t

and

Ltd.
in

0.80

14

Mills, Ltd.__

wide

Leases

"

,

Recent surface exploration located

Caldwell Linen

Canada

to

Copper Rand and a third
more
than a probability.

develop

etc.

Makes

■

.

Jaculet

oper.

Burns & Co. Ltd. "B"
ucts,

,

1

'

which

in Canada

Asphalt roofing,

Bouzan Mines is

Rand

shafts

the

seems

2.00

41
Second largest

bougamau and on the nearby Yorcan
Exploration Ltd.
holdings.
eral additional surface holes

de¬

entire

:

a

comparatively

on

British

»

Chibougamau is
new incorpora¬
tion having consolidated the orebodies of Copper Cliff and New
Royran, the latter companies in
turn
controlling
Copper
Rand.

Companies Which Have Paid Consecutive

Table

active
the

Bouzan

assured

Copper

a

Second

<

•'

long-dormant by a. large number of companies.
shaft in the general area. Recent Chibougamau Jaculet is using 16
diamond
drilling
has
started drills to complete fill in drilling
pointing up rather interesting
pn, ^two zones " with the balance
suits on holdings of Bateman Bay used for further test of its new
Mining Co. at Portage Island Chi¬ zone and for exploration.
reopen

Chibougamau and Merrill Island
Mining
Corporation,
the
other
heavy developers include Copper
Rand Chibougamau, Chibougamau
seem

Electric Co. Ltd.

Listed

of

operations

Jaculet

-

Holding co.,

most

the

<

;

British American Oil Co. Ltd.
<

Besides

revenue

stamps, and similar items

V.

to

-

at this date.

Ltd.

Makes bank notes,

'

has nine
underway
over
a
radius of three miles by
two miles. These shafts represent
the undertakings of seven separate
companies and it would appear
this general sector holds the main
productivity of the camp as known

5.0

b5%

0.40

23

Ltd

Hats

fur felt and

Men's

the
area

doubtedly
veloping

Chibougamau camp
shafts
completed
or

Quebec gold producer

Biltmore

k

Producing Industry
Forging Ahead

Approx.

Including

ing

from page 22

Canada's Mineral

Cash DIvs.

25

(1305)
;

25 Broad

Street/New York 4, U. S.

Members New York Stock Exchange and

A.

other leading

Exchanges

26

26

The Commercial and Financial Chronicle

(1306)

Continued

jrom

'page

25

000,000 tons of 1.6% to 1.7% cop¬
per. Jaye Exploration is diamond
drilling nearby with other com¬

•

Canada's Mineral

American

new

inspired by
of Copper

assessment,

results

Corp.
The Temagami

district, the sum¬
playground of Ontario, has

mer

blossomed into

fine

a

new

copper

the high-grade shipping
Temagami Mining. The
plans
constructing
a
2,000 ton mill. Temagami's success
occasioned a mining boom.
camp

on

of

success

company

Heavy expenditures are contin¬
uing in the Manitouwadge area of
Ontario

where

the

Noranda-di-

rected Geco Mines is shaft

sinking
ton daily ca¬
copper, lead,
nearby Willa shaft sink¬

and

Smelting & Refining
financing a development pro¬
gram on a low-grade tonnage op¬
eration of Bethlehem Copper Cor¬
poration at Ashcroft, B. C. where
a number of companeis have been
attracted to the potential of the
is

The Algoma district has come un¬
der

building a 3,200
pacity mill for its
zinc property. The
roy Mines also has
ing program well in hand for a
1,000 ton daily capacity operation.

Manitoba
in

the

received

arm" this year

Bay*. Mining,t&
nouncement of

>

by Hudson

Smelting's
brand

a

"shot

real

a

new

anT
base

Columbia Developments

tered

cen¬

operations

of

Mines at Stewart where

major

tunnel

undertaking

is

underway to develop at least 15,-

longevity in
totalling

view

of

tons

per, lead and zinc potential of at
least three new deposits is re¬

ported

large.

The discovery un¬
doubtedly has added many years

to

bring

the

The resultant

staking boom has brought
influx

The

of

is

a

heavy

activity to the district.

other

ment

prop¬

main

copper

centered

develop¬

the

on

under¬

ground operation of Amglo Rouyn
at LacLa

PROSPERITY
Cash Divs.

of

1.3% copper.

•

Stepped-Up Dominant Nickel

i

dominant

production

to

contribute

Direct

wire

Ottawa and

cities.

connections

through

l'Z
•

,

v

■

,,

"•

New

York,

Canadian affiliate

Stock orders

•

i

our

between

executed

on

all

to

Toronto,

;

c.

..

'

June 30

June

30,

1956
1956 V
—Canadian 5 §—

on

1956

14

0.10

12

1.35

38

3.6

102

4.00

160

2.5

29

f2.50

57

4.4

1.50

351/4

4.3

101

3.10

86

3.6

14

1.00

271/2

3.7

32

1.15

fO.65

191/4

3.4

89

1.50

51%

2.9

I.371/2

29%

4.6

3.15

3.2

wholesaler and
,

Foundries, Ltd..

One of the largest Canadian
and

com¬

underwriting life, accident

sickness

insurance

Canada Malting Co., Ltd
'

Malt

for

the

brewing &

_

distilling

Canada Packers Ltd. "B"

22
,

Full

line

of

packinghouse

prods.

Canada Permanent Mortgage

Corp.

almost

•

a

Lends
issues

__

on
first mortgage security,
debentures, accepts deposits

Canada Steamship Lines, Ltd.
Freight

and

other

passenger

vessels:

interests

include

diverse

hotels

Canada Vinegars Ltd

about

$5,000,000
on
the
the past three years,
including the sinking of a shaft
to 1,300 feet depth. The
property

bl9

®

Vinegar and apple products

over

Canada

Wire

and

Cable

Copper and steel

wires

and

conceivably be ready for
production by late 1960 or 1961 if

CANADIAN BANK OF

officials

I

6.1

Co.

Ltd. "B"

could

are

satisfied

with

the

out
•

Falconbridge Nickel
M i n e s,
Canada's second largest
producer,
has been undergoing fairly con¬
expansion in recent

been

the

Fecunis

through¬

See Bank's advertisement

on

page

Holding

co.

bronze

and

grain

subsidiaries

—

,29

make

*

1.81i/2b30

6.1

,

bearings,

bushings,
and
ficastings
3;- '-33"'
Canadian Canners Ltd._
Cans

32.

3 12

Canadian Bronze Co., Ltd.__

years

consistently

Lake

...

branches

world

Holding co.—brewing
milling interests

enlarged with its major Sudbury
district
undertaking at present
being confined to the North Jtim

33 /
17

2.00

393/4

21

0.75

16

4.7

19

1.05

28

3.8

5.0

'

fruits/ vegetables,. meats, etc.,

Canadian

Celanese Ltd..

Synthetic yarns and fabrics

Canadian

deposits

being readied for early

711

the

ropes

Canadian Breweries Ltd

increasing demands placed
the organization. The com¬
have

COMMERCE
Operates

price willing to be paid by Wash¬
ington.

Fairbanks

Morse

Co., Ltd.
Exclusive

pro¬

sales agents

for

Fair*

•

duction.

Montreal

Exchanges in Canada.

developing

is

new

also

nickel-copper

♦

'

't\l

i

'"HI

-I

.'fit

Quotations
price

po¬

June

&

of

Co.

Chicago

prior

30,

represent

to

June

that

date.

30,

1956

Bid

and

sale

prices

ask

or

the

quotations

last

are

sale

as

of

1956.

§ Add current Canadian Exchange Rate,
for stock dividends, splits, distributions, etc.

area

t Adjusted

Kenora, Ontario, where most of
Continued on pag$ 21'
■'

Morse

,

actively

tential in the Populus Lake
of

banks,

I

Falconbridge

and

affiliated with, V"

b Bid.
„

1

'

v-

\.y

Continued

on page

28

*

Vi •••/T'-'i'.«

Limited

...

.

June 30,

Years Cash
Divs. Paid

■■

Holding and operating company—
& equipment interests

panies

$140,000,000 ex¬
penditure to gear its low-grade
nickel and copper deposit in the
Mystery Lake area of Manitoba to
production.
So
far
INCO,
has

where

other principal Canadian

Wood, Gundy & Company^

Paymts. to

Canada Life Assur. Co

ada, the world's largest producer

are

Street, Chicago 3

tion

machinery

International Nickel Co. of Can¬

facilities

Street, New York 5

12 Mos.to

Based

industries

pany's smelting and development

105 West Adams

cake

Canada Iron

150,000,000
lbs. nickel additional annually.

project

Quota-

18

Bread and

.»

Extras for

Co., Ltd

.retailer

toward

seems

3.

■

-

Canada Bread

Washington's need of

spent

^;■:'

:v.->

sv

Position

Canada's

upon

14 Wall

% Yield

No. Con¬

"

.

to meet

Wood, Gundy & Co., Inc.

Approx.

Including
'

'

secutive

sistent

Ronge, Man.

/

CANADIAN PROGRESS AND

i

v

operation at Flin Flon.

The cop¬

>■ ♦

it

indicated

million

67

ore

of the "white" metal

erties to production.

excite¬

copper

the

around

Granduc
a

new

British Columbia is

n

Quebec's south

on

certain to start

expenditure

Principal

Mines

metal find in the Snow Lake area,
miles from its big base metal

some

v,/.

ment i

Copper

position in
the nickel producing industry has
district.
;
;•'/ become more
apparent with the
In Newfoundland, Maritime
announcement
premium': prices®
Mining Co. is moving in equip¬
will be paid
on
new
Canadian
ment for a 4,000 ton per day oper¬
production. Already operating at
ation in the Tilt Cove area where,
other companies are engaged in capacity the established produc¬
ers
and
new
developers: have
exploring the potential of this
stepped up development and ex¬
district as well as other sections of
ploration to win new sources of
the province.

Exploration is underway on many
A long list to the Hudson
Bay lifeline and
of companies is active on copper
it appears the company will lose
hopes in the Kenora district as
little time in footing the heavy
well.
,,/■' '..
additional properties.

British

Continued from page 25

the

panies also active. Canam Copper shore is now operating efficiently.
has announced plans for a 2,000. The 6,500 ton daily capacity conton mill at Hope, B. C.
centrator and smelter is assured

Producing Industry
Forging Ahead
development

The fine large new operation of
Noranda
controlled
Gaspe

Thursday, September 27,1956

...

and

Wood, Gundy & Company
Members
The Toronto Stock

Exchange

Montreal Stock Exchange

Canadian Stock
TORONTO

QUEBEC
HALIFAX

MONTREAL

SAINT

WINNIPEG

JOHN

KITCHENER

i

of

Exchange

LONDON, ENG.

HAMILTON

LONDON, ONT.

OTTAWA
REGINA

*

VANCOUVER

EDMONTON

CALGARY

VICTORIA

Spcncc
Conodia.

1

U5

yqrK 6,

N.Y.

BROADWAY
and here is the

International Bank to

MUls,
,

moTBEL




wriTH MORE THAN

Limited

W

h**—'W»NDON> ENC'

NEW v

■s.yswt' • ■

Great Britain, the U.S.A., and the West

Indies,
fact
you

i"™1™'

500 branches in Canada,

and

with

correspondents in other

countries—The Bank of Nova Scotia is in

®i„Vnc©&C0,

you

GENERAL OFFICES: 44 King St. West, Toronto.

SP?»ce &

WINNIPEG

help

-

International Bank
equipped to give
authoritative information and expert

an

NEW

YORK

OFFICE:

REPRESENTATIVE:

In Jamaica:

Caballeros

\

of

of

C.

St.
4.

LONDON

CHICAGO

Trade

Building.

Kingston and 17 other branches.

In Cuba:

Spain.

connected with Trade.

BAN K

Board

Wall

E.

Havana and 7 other branches. In Barbados:
Bridgetown.
In Bahamas: Nassau. In Trinidad: Port of
minican

e

37

House

BRANCHES OUTSIDE CANADA

guidance on credit, or any of the many
banking and financial problems and details

Ih

OFFICE:

Walbrook

Puerto

Rico:

San

Juan, Fajardo and Santurce.
Republic: Cuidad Trujillo, Santiago
.

.

.

and

correspondents all

N OVA

over

In

In Do¬

de

los

the world

S C O TIA

i

Volume 184

Number 5572... The Commercial

Continued jrom page 26

.couraging and grade of ore under¬ Dominion-wide

Producing Industry
the

drilling.

been indicated to

of

this

names of Ca¬
have
acquired
large areas. Besides

\

the

Werner

1947.

Premium

' \ ■>*.

Prices '■;:V- r') •;

",cj;

producer,

Major
Iron

Co. of

Ore

of

district, northwest of Kenora, is witnessing major develop¬

started

before

showings
in

ated reassessment of old
and

which

the

the

of

end

tory arm of the

Mining

tonnages

&

large

Lake.

is

copper

knd

1,000

capacity, concentrator

-

pro¬

daily-

Gordon

at

Concentrates

will,

be

shipped to Chicoutimi for smelt¬

ing and refining. The nearby Norpax

Mines is also working under¬

ground

similar material and

on

Nickel

Rim,

also

in

a

Sudbury,

has been pursuing depth develop¬
ment

mill

and

measure

expansion

of increasing

as

a

daily out¬

put. Sherritt Gordon Mines, Lynn

Lake,

is

Man.

heavy

completed

its

custom

some

also

should be in

in

engaged

development

having

and

for

arrangement
refining

INCO,

by

position to expand

a

both its nickel and copper output

t this

year.

North Rankin
most

' I

•

precious

west

the

on

metal

shore of

Hudson Bay, expects to be

next

duction

a

the

and

property

orebodies

of

will

are

production;

for

prepared

Concentrates

?

250-ton mill is on

equipment for
being

in pro¬

spring. * \Bulk

treated

be

at

Chicoutimi along with production
from Eastern Metals Corp. .which

holdings at

plans a 500 ton mill on

this

cluding

development

latest

effort

has established well in ex¬

metal

equip
ton

ore

from the Maine border

Many

new

velopments
the old

-

miles

eight

Panet,

de

Fabien

in Quebec.

nickel-copper ' de-

have

Sudbury

cropped

up

camp.

Hill

Siderite

the

Ontario. Ore

reserves

Continued

sinking

a

in
on

the

JOSEPH

C. B. DIXON

D. G.

W. H. JACOBS

of

area

28

Corporation Limited
LIABILITY)

(NO PERSONAL

TORONTO, ONTARIO

American Metal

two

pits •

tons

1,500

The mill is now being

daily.

substantial increase in

?

erected. The •

Province at present is

experienc¬

in ing:an^active;exploratory under-;
taking by a range of companies.

0.84%

financing and a
on its extensive
Sudbury district nickel, copper and platinum prop¬
erty, is reported by Arcadia Nickel Corporation.
Extensive diamond drilling and underground de¬
velopment of holdings on the Worthington Offset
have permitted a recalculation of the ore picture.
Receipt of $1 million from new

exploratory'

bringing its deposits into

production, at

Wellington Street West

605-137

Company

shafts to 480 ft. depth in prepara¬

tion 'to

ore

The

Management can now report an
ores

to

indicated

po¬

of combined' nickel, copper
1,000-ft. depth in four known

-v:;.,-;".v;%
in the Robinson zone occa¬
the tonnage reassessment in view of the ex¬
development

continuing in good ore.

The most recent work on the

levels

the

leads

Management

to

driving east

expect

500

tiers

track

0//e 2/ownto

f/ticcA

per

tons

SxcAa/n^e

per

fjicc/e Sxc/rCrncjfe

AbAAe ^Aownadian

0/iocA

be

to

be fully developed
of the new No. 2 shaft. The
shaft area bus been cleared on surface and a deep
diamond drill, obtained from Blind River, is now
testing the No. 2 shaft area.
The East drift on the 350 level has been extended
584 ft. from the shaft while raising from the 500
level is opening fine ore in the 510 raise.
The Management has deposited $37,500 with the
°Hydro Electric Commission of Ontario to provide
adequate electric energy, under contract, commenc¬
ing about November 1, 1956.
Metallurgical tests

vertical foot to the 1,000-ft. horizon.
tonnage estimate is based on the

known as the Gersdorffite, is considered
equal in size and grade. As less is
other two zones, the Rowland Pit

and

"Z"

a
smaller potential is
potential from these four
total of 2,500,000 tons is indicated to the
or

Swamp

zones,

envisioned. Combining the
zones

a

are

VICE PR ESI DENT

tyi'owfA

^uce

been

In view of the nearby

Nickel

national

^eci<<pe *2) £$</a/rn$

good

to

ore

feels there

a

are

Co.

of

Worthington mine of InterCanada having developed

.

work

200

BAY

STREET

underground development has added to
materially, as a result of lateral
and
down drilling between levels, in the
picture

tion at 1,000 ^tons

TORONTO, CANADA

daily.

A vertical drill hole,
on

elefincite. (binJune <S ti 7 'J/

Office-




73 BROCK ST -

500 level,

secured in concentrating.the ore to

The

Underwriting

by

The

on

typical

sited 75 ft. east of the shaft

under

intersected 2.3% combined nickel

extremely pleased with

being secured at the property

Sudbury
direction

ore

Manager John M.

of General

patriek and Mine Manager John H.
Board
also
wishes to a'knowledge
technical
"

assistance

.

1
.

*

.

Kil-

Douglas. The
.

the

afforded by Simard &

Geologists.

Consulting

where

underground

is being opened

On Behalf of the

August 27, 1356

Ltd.

and 150,000 shares at $3 for

Board of Directors is

the fine results

*

plus precious metals, over 70.4 ft., coinmepcing 64.6 ft. below the level. Of this length
43 ft. averaged 3.01% combined metals with a 5.4 ft.
length within the section running 5.1% nickel and

KINGSTON. ONTARIO

date.

Investments

Aer

debentures.

rush the property to produc¬

and copper,
T1

£8*an<Ji

the

representative bulk
Excellent results have

on

funds to approximately
$1,800,000. There is a further $1,000,000 invested in
buildings, equipment, supplies and on pre-produc¬
tion expenses.
Any additional funds necessary to
bring the property to production will be provided
through bank loans as the Management does not
propose further financing through sale of stock or

Recent

accelerated program to

Ottawa

$1,000,000 has increased cash

Arcadia property may well extend to 2,000 ft.
vertically and beyond which would result in doub¬
ling reserves to 5,000,000 tons to 2,000-ft. depth.
ore

at

200,000 shares at $2.75

depth of 1,700 ft., the Management
sound reasons to expect that ore on

; the

the'

continuing

samples from the property.

1,000-ft. level,
PRESIDENT

eventually

will

provision

:

about

known about the

Sxc/ianjjfe

55 ft. to permit installation of double
facilitate quick handling of muck. The

zone

through

expectation of the Company developing approxi¬
mately 1,000,000 tons of ore down to a depth of
1,000 ft. on the Robinson zone. The Rosen zone,

formerly

fy/ie dloTifoeal

to

Rosen

increased

The

of

length

that 1,000

vertical fotft tan he maintained or possibly
increased.
Previously, partial development on the
first two levels had only permitted an estimate of
tons

distance.

ft.

650 and 800

'"'v

work in the 650 level is confined toto intersect the Rosen zone about 1,400
The drift has been slashed over a

Principal

ceptionally fine results secured on the 500-ft. level
where 1,000 tons of ore per vertical foot were de¬
veloped.

averaging 11.39%
continuity of the.

650 levels.
has opened excep¬
tionally fine ore to dale. ...The East drift has been
extended approximately 125 ft., having encountered
massive sulphides the greater part of that distance.
A 36-ft. length, within the 125 ft., averaged 4.91%;
combined nickel and copper over 8-ft. face samples*;
Typical sections were 4.52% copper and 2.62%
nickel; 2.29% copper and 1.35% nickel; and 6.91%
copper and 1.12% nickel. The drive to the west is
body between the 500 and
The drive on the 800 level

ore

tential of 2,500,000 tons
and platinum

with a 2.3-ft. section
This hole proved vertical

copper

copper.

reserves

-

zones.

v;>

COLQUHOUN
BANNERMAN

new

page

Arcadia Nickel

sioned

V

C. M. WILLIAMS

CLIFFORD T. LOW

shaft to develop its base

sinking

v

JOHN M. ROGERS

JAMES W. COCHRANE

horizon

River Gold Mines is

is surface stripping two open
and

'
:

■

.

D'ARCY M. DOHERTY

T. H. ROADHOUSE

metal tonnage.

The

All Branches

•

PROGRESS REPORT

Latest

.

Vancouver

base metal

a

body to. the 1,500 ft.

and Sturgeon

Montreal

•

eventually

to

property with a 4,000
New Larder "U" Island

developing

is

•

underground in a

designed

mill.

York

Calgary

Private Wires: New

-

NORTH BAY, ONTARIO

TIMMINS, ONTARIO

Joseph Lead

the

Mines

OFFICES

KIRKLAND LAKE. ONTARIO

IIAILEYBURY, ONTARIO

Smelting,

Mining &

under direction of St.

Co., is working

20 ST. CLAIR AVE., W.

BRANCH

Sir James mine

new

\

ore.

Brunswick

:

ST., W.

Partners

its

on

of base

tons

100,000,000

of

BRANCHES

LOCAL

20 BLOOR

Al¬
goma Steel Corporation, has been
concentrating
a
great
deal
of
in

cess

,

TORONTO

the

Algoma
Ore
Properties,
wholly-owned operation
of

New' Brunswick in the past three
years

OFFICE

HEAD

335 RAY STREET,

hence.

years

where about

2,000,000 tons of copper have been
indicated to 500 feet depth. Ex¬

-

St.

ASSOCIATION OF CANADA

Giant U. S. Ken-] output objective of 5,500,000 three

necott Copper Corp.,

program

Nickel, Canada's

northerly

operation

' ' -•

Mines

areas

many

ton

underground

erecting a

poses

Smelting

nidkel

;

In-'

season.

underway in the district also.

Eastern

developing

'

■

THE TORONTO STOCK EXCHANGE

:

dications point to Steep Rock Iron

active prospecting

long list of companies have work

nickel-

new

on

.

THE INVESTMENT DEALERS'

is

hitting record production
of " Canada. : Latest
of over 3,000,000 tons this year.
scene of new activity is the typi¬
Wabana Iron, the undersea opera¬
cal farming-industrial
area
of
tion in Newfoundland, will likely
Renfrew which has been startled
by a staking boom on a nickel-: produce 3,500,000 tons with Algoma Ore Properties 1,800,000, the
copper discovery. More and more
Ontario.
deposit , of
companies are becoming inter-, Marmora,
Bethlehem 500,000, the two Pacific
ested in nickel chances,
j
coast producers 1,000,000 and pos¬
New Brunswick continues in the
sibly ;500,000
tons ; from
Inter¬
Canadian; limelight with
addi¬ national Nickel by-products and
other satellite deposits.
tional ore news. The latest impor¬
Steep Rock Iron Mines on May
tant hew development is on prop-'
3
officially opened the
No. 1
erty held by Kennco Explorations
Errington underground mine and
(Canada), the Canadian explora¬ is hopeful of reaching its annual

programs

copper hopes. *

''

:

is

course,

Canada

f'

MEMBERS<•

t

Lake

ment

.>'

DOHERTY ROADIIOUSE & CO.

Washington's recent announce¬ likely to ship 12,000,000 tons from
ment of premium prices has cre¬ its New Quebec-Labrador deposits

Gordon

-

■

ore

production having only com¬

menced in

mining

sector

iron

rather remarkable in view of iron
ore

Effect of Washington's

_big and small

nadian

the

of

warrant erection

1,000 ton mill.

a

will hit
Growth
industry here is

.output

22.3 million tons this year.

surface
Sufficient tonnage has

ground exceeding original

Forging Ahead

acreage over

27

Canada's
iron ; ore
production
ticular, has resumed development,
of an old-dormant deposit with, keeps moving along on a full head
results So' far being decidedly en-: of.;steam*, and, in.,ail ^probability

Canada's Mineral

f ; r

,

in par-i Remarkable Iron Ore Production

Mines,

Nickel

Arcadia

•

.

(1307)

and Financial Chronicle

splendid
Knight,

' [

Board of Directors

Allen E. Rosen,

President

"*«H'#i

attlAVMMWl

28

(1308)

The Commercial and Financial
Chronicle...

Continued

iKT'

from

page

duction

27

in

1960

at

overall

cost

production.

ranging to $50,000,000.
Besides

Canada's Mineral

the

established

pro¬

samples

ducers

a wide range of
companies
actively engaged in exploring
and developing known iron de¬
posits
at
many
locations
in
Canada. The Cyrus Eaton interests
of Cleveland have been investi¬

mine

believed

in

to
\

commence

Caland

trolling large
Steep

next

Ore

Rock

year.

has

ground

acreage leased from

Mines,

is

drilling

con¬

in

netite

James
en¬

and

large

is

reserves

the

of

Belcher

Islands,
Bay- region
of
Ontario,
now
reported negotiating

gaged in the long-drawn-out task

with

of preparing its property for pro¬

finances to bring the property to

U.

S.

interests

for

senior

been

Continued from page 26

deposits

Ontario

CANADIAN PROGRESS AND

the

and

Upper 'Canada

started

PROSPERITY

exploring iron

large

on

generally

tracts

"

Cash Divs.

of

is

being

west

of

conducted

number

actively
posits

of

!

lithium

far

America.

Canada is

in

sinking

the

Manitoba

Cat

and

shaft

de¬

in

the

Ontario.

the

9.00

b760

28

1.28

29

4.4

30

0.50

20%

2.5

27

6.00

921/z

6.5

0.60

24

2.5

1.50

30%

1.2

sell¬

"■■■■*

Lake

Chemicals and

Manufactures

of

area

develop

its

comoressors,

pneu¬

refining & distribution

Can. Pac. Ry. Co. "Ord."
"The"

-

private

railway

4.9

system

of Canada

de¬

m&

Canadian Tire Corp., Ltd

of

area

products

tools, pulp and paper

Petroleum

is

Beardmore

allied

•

Canadian Oil Cos., Ltd

of

Creek

;

Canadian Ingersol-Rand Ltd.

hold¬

on

13

0.70

11

Automotive accessories,

1.50

18

*0.50

135

5.2

parts, etc.

of shaft sinking

Ltd.

pro¬
*

also

are

being

Airbrakes

conducted
|

columbium-tantalum

and

large

variety

46%

3.2

of

electrical apparatus

proper¬

Celanese Corp. of America—

ties in the Oka region of
Quebec.

■

y

t

Yarns and fabrics

t
.

Celtic Knitting Co., Ltd
/ Silk, silk & wool, and cashmere

i /Firms Consolidate
LOUIS, Mo.—O. H.
bing & Co., Paul Brown &
and

Redden

are

discontinuing

will

be

with

Woods,
320
Street, members

Fourth
„

/

Com-

•

Charter

and

North
of

the

•

Wines

and

Maisel
been

Investment

formed

with

Calif.

;

t Operates

?

—

Company

has

./

se¬
are

Maisel, President; Arthur
Miller/ Vice-President; w and
David
M.,? Atcheson,». Secretary.
Mr. Maisel was previously with
Investment

60

2.2

1.00

15

6.7

million

2

a

in

15

1.10

biiy8

Incor¬

-i'•:

•

Ontario

,1

19

0.40

4.10

9.8

In West. Canada,

holding

Rigid

9.8

bushel grain

Collingwood,

co./

electrical

conduits,

20

elbows,

0.90

12%

7.3

V

couplings, etc.

564

at

W.

...

1.30

12

Conduits National Co., Ltd.__

Fred W.

Consolidated

22

/

juices

Commoil Ltd.
also

offices

Market Street to engage in a
curities - business. - Officers i

porated.

2.9

Co

Collingwood Terminals, Ltd.
;j.y elevator

.

FRANCISCO,

28

73

large Insurance

Chateau-Gai Wines Ltd

Yates,

(Special to The Financial Chronicle)

SAN '

—

fiduciary business

Oil props.

..

co.

Trust

General

Maisel Inv. Co. Formed

<

0.80

$

Wib-

New York and Midwest Stock Ex¬
changes.' ". / / : • ":V V
..

Investment

>

Company

&

IU.;

$

Central Canada Invest. Ltd.-

business

consolidated

Heitner
T

and

t

1.00

Interests

' ST.

pany

12

hosiery

With Yates, Heitner
;

,,

,

/ A couple

on

1956

13

&

Name changed on Dec. 30, 195S
from
Canadian
Industries
(1954) Ltd.

matic

shaft

1956♦

—Canadian $ §—

Electric

Canadian Industries Ltd

Quebec

Corp.

Nama

sinking to

posit

a

1956
■

..

Management type invest, trust

disposing of

Lithium

30,

.

Corporation continues
so

-

on

Paymts. to
June 30,
June 30

27

Canadian Gen. Invest. Ltd._»
are

concentrates to Lithium Corp.

grams

June

Based

31

manufacturing
ing
rights
of
General
products in Canada

but

present

lone producer

ings

tion

Canadian Gen. Elec. Co., Ltd.
Exclusive

companies

developing

at

Lithium

>

12 Mos.to

the

on

Lithium Deposits

of

Quota-

Years Cash

bia, Ontario and Quebec.

its

Extras for

secutive

Steep

known deposits in British Colum¬

A

% Yield

No. Con-

Divs. Paid

also

Approx.

Including

Rock Iron" Mines. Additional work

mag¬

.

has

representative

magnetite

in

possibilities

Belcher Iron has been diamond

Properties,

Iron

Mines

Bay

on

gold-producing

gating large deposits of magnetite
and hematite in the Ungava Bay
district where other interests, in¬
cluding Fennimore Iron Mines,
are conductig further work on ex¬
tensive holdings.
r //

the

neigh¬
borhood of some 80,000,000 gross
tons, of which about 7,000,000 tons
-will be recovered by open pit min¬
ing during the first six years of
operation. Production is expected
are

from

controlled

are

Producing Industry
Forging Ahead

Iron

conducting tests

Thursday, September 27,1956

Confederation Life Assoc
Wide
-

life

range

of

endo jvment

33

1.50

150

1.0

and

policies

♦ Quotations

price
June

represent

prior
to
1956.

that

June

30,

date.

Bid

1956

sale

and

ask

prices or the last sale
quotations are as of

30,

,

§ Arid

current Canadian
Exchange Rate.
♦
Dividend paid In U. S.
Currency.
t Inactive issue, no
Exchange trading.
b Bid.
i:- , '
.

»

'

'

-

-

-

-

.

••

Continued

on

page

I

29

iSj
...

P;

V.

then consider

•

HIGH GRADE

(

i

The mature consideration of
your plans for investment
leads to interesting thoughts—about Canada.

DIRECT SHIPPING IRON ORES

Many prod¬

ucts and world-wide services

represented by investment-

grade securities involve Canadian participation. Either as
supplier of raw materials, or as an increasingly important

a

market, Canada is

a

factor

on

the stock

FOR THE

exchanges of the

world.

BLAST FURNACE AND

That's why we suggest you consider Canada.
And when
you

do, there's

no

better place to get the facts

plant sites, personnel, financing

or

markets,

.

-4*."*"

-

trade information than

The Toronto-Dominion Bank. We invite
your
ask you to bear in mind that

on

*v;

'•>

inquiries, but

do' not advise

we

/relative merits of Canadian securities.

-

on

,•••

rr

./<■

■

*-

the

'•.

450 Branches Across Canada

,i

THE

i

TORONTO-DOMINION
Head
New York

Office—Toronto, Canada

Agency:

49 Wall Street, New York 5, N. Y.




London, England Branch:
3

King William Street, E. C. 4

Rock Iron. Mines, Limited
Steep Rock Lake, Ontario

.

'*■

Volume 184

Number 5572

The Commercial and Financial Chronicle

...

CANADIAN PROGRESS AND

Haydan Memorial Golf
Trophy Match Sept. 28

PROSPERITY
Cash Divs.

Approx.

Extras for

secutive

12 Mos.to

Years Cash

June

30,

1956

Divs. Paid

The

Based

Quota-

Paymts. to
June 30, June 30

—Canadian $ §—

Consolidated Mining &
Lead., zinc,
tilizers, etc.

silver,

chemical

five

capacity 2,479

daily

11

newsprint

-

^

variety

distributes

cohol

of

and

and

trophy and
eligible to compete for a va¬
riety of other prizes. There will
also be a special individual low
net prize for "seniors" (age 50 or

3.6

over).
The trophy remains in
perpetual play as a memorial to

glas3

r

0.80

22y4

co.

;

.

21

1.50

4.7

32

heavier

20

1.10

16y4

o.70'

iiy4

6.0

28

2.00

54

published, write
Head Office, Montreal.
are

any

copies y
U. S. office \
j

3.4

Bank

posed
of L.
S.
Potter, Jr., of
Co.; R. E. Christie,
III, of Dillon, Read & Co. Inc. and

of

Montreal

or

Kenneth
for

caps

the

Co., Ltd.

beverage

dustry
• ■/..'A;:;l:yCrown Trust Co

Ward,
and
Wickliffe
Shreve, of Hayden, Stone & Co.

"

57

0.60

«■64 Wall Street

•

'Zfccut

With Hamilton Mng'ment

2.3

26

" San Francisco

- • -

333 California Street

MIAMI, Fla.—John F. Kelly and
Ralph Z. Rozel are now with
Hamilton Management Corpora¬

Companies Which Have Paid Consecutive

Starting

tion.

,;//

.

Join Hamilton Management
Crow's

Nest

Pass

Coal

Ltd.
Coal

39
producer

on

western

of Canadian Rockies,

4.00

195

2.1

PANAMA

slope

-

Johnson

,.v:'v:

Jr.

Distillers Corp.-Seagrams r

f

Ltd.
A

20

1.70

343/4

0.70

133/4

5.1

complete line of whiskies and gins

With

gold producer

mm

17

Bridges,

cranes

4.1

cent

and

44

0.70

3.5

2oy4

structural

variety
equipment

of

son,

15

-

machines

1.00

23

'■'V

-

-

Quotations

price

prior to
June 30, 1956.

that

30

0.40

10

4.0

Pierce,

Inc.,

June

elate.

30,

1956

Bid

and

sale
ask

prices

or

the

quotations

last

are

as

sale

lensky

of

are

Building,
page

The Investment Dealers' Association of Canada

.

Building.

n

*■>}

4

4Branches: 'i

.

30

&

connected

now

Co.^

Private wire system to

Sydney, N.S.

.

(Special to The Financial Chronicle) ,/

Mclnnes

on

Exchange

•

Carri¬

Exchange

Canadian Stock

Burnett Na¬

Fla.v-— Harry Simberg, ;
David F. Tracy and Joseph J. Wi-

•*;./

Continued

V;

Montreal Stock

•

H.

MIAMI,

§ Add current Canadian Exchange Rate,
b Bid.

Wulbern,

Benjamin

Mclnnes Adds Two

draperies, etc.

represent

and

with

'

•

Halifax, NA

and

Dominion Fabrics, Ltd.
♦

are

4.3

/r'.;:

tapestries,

Brice

Members:

Vin¬

—

Wks.,

>

Towels,

Pierce, Carrison

tional Bank

—*

Wide

R.

Troemel

kinds:^//;/

Dominion Engineering
Ltd.

yv.

16.00 b395

holding company

Dominion Bridge Co., Ltd.*..
steel of all

:

connected with Ham¬

JACKSONVILLE, Fla.

Corp., Ltd._-

Investment

Business Established 1900

(Special to The Financial Chronicle)

Dominion and Anglo Invest¬
ment

now

CITY, Fla.—Keith B.
Donald W. Stewart,

a

Dome Mines Ltd
Ontario

are

and

ilton Management Corporation.

4.9

37

——

holding co.—interests include

G. E. LESLIE & CO.

(Special to The Financial Chronicle)

Co.,

Toronto and New York

Branches,

Moncton, N.B.
Saint John, N.B.

The

Royal Bank Building, Montreal

Telephone: IIArbour 8281

with

Inc., Huntington

members

of

the

burgh Stock Exchange.

Pitts¬

'

\

ASSOCIATED COMPANIES
Brokers and dealers demanding

The Ventures group

of Companies carries

on

explo¬

Canadian service
trades

ration, development, production and research in the

through

members

we

are

fast, reliable

increasingly placing their

Why? As Toronto Exchange

us.

have

direct wire to

a

our

office

there, designed to handle volume.

fields of mining and
list

of

metallurgy covering

an

extensive

Whether it's
for

metals,

including nickel,

copper,

lead, zinc,

and

Canadian Market Letter

nepheline syenite.

request

request.

Department

;

BACHE & CO.
NEW

LEADING

Head Office




on

Address Canadian

MEMBERS

y ■

or a

information, try Bache. Our fortnightly

silver, gold, magnesium, cobalt, tungsten, zirconium,
titanium

order,

quote, an

a

YORK.

AMERICAN.

TORONTO AND OTHER

STOCK AND COMMODITY

36 Woll Street, New

EXCHANGES

York 5

Dlgby 4-6300

/
25 King Street

West

360

Bay Street, Toronto
EMpire 8-4871

Toronto, Canada

Founded 1879

All

\

RESOURCES—$2,700,000,009

?

"

Page 40

on

I

Office: TftcHtnecil

675 BRANCHES ACROSS CANADA

(Special to The Financial Chronicle)

Table

-

CHICAGO: Special Representative's Office, 141 West Jackson Blvd.,.

Dividends From 5 to 10 Years Appear in the
Second

New York

in¬

fiduciary business

Listed

!

on

Fahnest®ck &

duck

Crown Cork & Seal

General

or

re-

eco¬

and trends. To receive

news

they

Canadian

you

arrangements
for this year's tournament is com¬

6.8

22

The committee

i.

grades

nomic
as

competition.

al¬

—

Monthly, the B of M's Business Review
ports and interprets for

Hayden, founder of Hayden,
Stone & Co., who sponsored the

■

containers

operating

spirits

Manufactures

Bottle

Canadian economy I

Mr.
■

Cosmos Imperial Mills Ltd.—
cotton

3.4

gas

area

Corby (H.) Distillery Ltd."A"
Holding

43 %

;

■

109
and

Toronto

Consumers Glass Co., Ltd.—_
Wide

;

•>

-

—

Manufactures
the

compete for the
two-man teams will

1.50

;

tons.

Consumers' Gas Co. of

in

each month of the

will

5.6

be

mills;

Toronto:

firms

31 y2

fer-

Consol. Paper Corp., Ltd
Owns

ties

be

1.75

24

Smelting Co. of Can. Ltd.

will

nament

1956

1956^

Annual

den Memorial

on

tion

.

28th

Charles HayTrophy Golf Tour¬
held on Sept. 28
at the Apawamis Club, Rye, N. Y.
As in the past, four-man teams
representing Wall Street securi¬

% Yield

Including
No. Con¬

29

(1309)

our

offices

are

open

Saturday mornings

30

The Commercial and Financial Chronicle..

(1310)

Continued

from

page

trial and
commercial, $960 mil¬
lion; mining and petroleum, $245
million, and other concerns, $12

5

Canadian Investment Penetration
Of the United States Economy
exporting their products to this
country but either by establishing
a large number of subsidiaries in
the U. S.

holding

or

substantial

a

interest in firms here owning val¬
uable natural resources, especially

oil, iron

and coal, which they

ore

for

need

their

Canadian

own

op¬

erations.

Nobody in the U. S. is
claiming that American interests
have been hurt by such Canadian
moves.

The

300

Canadian

Companies

More than 300 Canadian compa¬
nies or groups of Canadian in¬
vestors

altogether

vestments

had

abroad

direct

the

at

in¬
of

end

Their direct investments in

1954.

the U. S. alone totaled
lion.

$1,250 mil¬

The Canadian eauity in

of the

total.

These amounts

pared

with

U.

ment

of

Canada.

On

direct

S.

about

$5.7

com¬

invest¬

billion

in

per capita basis,
however, of direct investments in
the U. S., Canadians hold on an
average ground $50 and Ameri¬
cans, $30 of direct investments in
a

Y?

Canada.

All;
ments

U.

Canadians

direct

everywhere—not

S.—at

the

end

of

v

/;■!/

invest¬

just

in

Latin

other

K.; $77 million
America; $55 million,
investments; $48

American

1954,

investments

distributed

were

Cana¬

total

all

of

Canadian

utilities, $390

and

mil¬

industrial and commercial,
million; mining and petrol¬
eum, $145 million; other concerns,
$10 million. Other Canadian in¬
in

vestments

the

million

$490

million of bonds.
of

Canadian

all

the

U.

thus

S.,

$1,835

U.

S.

stocks

of

included

$89

and

The grand total
*

investments

direct and
million.

other,

in
was

Canada's Foreign Direct
•

'v

Investments

■

ot^r, of $9,623

PROSPERITY
Cash Divs.

No. Con-

;

the

of

end

tributed

1954

secutive

follows:

as

debentures of steam

Wide

Operates

estimate

An

on

for

leum

assets
a

of

the

A

the

end

of

1955

1.00

21%

3.5

1.00

393/4

2.5

0.45

16

2.8

45

0.50

8

6.3

11

1.45

38

3.8

14

3.00

b26

1.2

f4.65

bl5%

2.9

30

1.50

37

4.1

*1.25

14

steel

&

•

Stores Ltd

Chemical

&

Tar

chain

meat

and

groce'y

Distiller
of

its

coal

of

&

tar

producer

derivatives

Dominion Textile Co., Ltd.—
Wide

range

cotton

of

and

yarns

'

fabrics

Donohue

Ltd

Brothers

and operates
Clermont, Quebec

Owns
at

'

*

Co., Ltd

mill

paper

a

Eastern Theatres Ltd
Operates theatre in Toronto

abroad
of

of

$7
;■■■/■

of

in

Electric

General

investment trust business

Electrolux Corp.
"Electrolux"
air

8.9

&

'

'

•

-

Equitable Life Insurance Co.
of

line

of

0.85

49%

1.7

1.20

36%

3.3

22

-

1.50

17%

8.6

endowment

and

life

18

24

Canada

Wide

policies

Falconbridge Nickel Mines,
Ltd.
Nickel,

cobalt;

copper,

subsidiary

produces steel castings

Canadian

Corp., Ltd.
Largest

♦

of

operator

theatres

ture

in

pic¬

motion

Canada

'

Quotations represent June 30, 1956 sale prices or the last sale
nrtor to that date. Bid and ask quotations are as of

price
June

assets

§ Add

30,

*

31

1956.

current Canadian Exchange Rate,

f Adjusted

$600 million; Canadian

page

13
cleaners,

vacuum

purifiers

Famous Players

on

.

floor

Economic Invest't Trust Ltd.

million, or
billion for gross

Continued

machines,

washing

polishers, air circulators, etc.

$300

Canadian

Co.,

Ltd.
>

Canada are estimated at $13.2 billion, including direct investments
of
$7.5 billion; equity of non¬

residents

Machine

Easy Washing

investments of

total

abroad

Private Wires Between

6.0

11

iron

\

Dominion

the liability side, total non¬
resident long-term investments in

Investment Dealers Assn. of Canada

331/2

11
co.—coal,

holding

Dominion

shows,

Toronto Stock

Canadian Securities

2.00

oil¬

and

•

•

interests

On

Winnipeg Grain Exchange

4.0

15

linoleum

of

products

Ltd.

Canadian

assets.

*

8.00 b200

Dominion Steel & Coal Corp.,

included:

Members

%/«.

13

Co., Ltd
range

cloth

$1.8 billion;
Government of Canada holdings
of gold and foreign exchange of
$1.9 billion, and other short-term

Exchange

3.1

for fire insur¬

company

Wide

the side of Canadian assets held

direct

Montreal Stock

42

Dominion Oilcloth and Lino¬

abroad, total long-term invest¬
ments of $4.8 billion, including

Exchange

1.30

etc.

ance

municipal bonds,
$2,056 million; other portfolio in¬
vestments,
$3,157
million,
and
miscellaneous, $561 million, for a
grand
total, ' direct
investments
and other, of $12,469 million.

ness

Street, Toronto

39

Ltd

variety of glassware

Dominion Insurance Corp

balance of international indebted¬

6 Jordan

2.4

primary

products

Dominion Glass Co.,

and

distributed

Affiliate of Watt & Watt

31%

70

of

variety

0.75

13

steel

all

dians abroad, taken

together, were
as
follows: Railways
utilities, $427 million; indus-

June 30
1956

Government and

All direct investments of Cana¬

and

19566

20
wide

Makes

railways, $37

Canada

in

Paymts. to

June 30,

1956

Ltd.

million,
of
other
corporations,
$606
million;
capital
stock
of
Canadian companies, $4,365 mil¬
lion; other corporate assets, $1,687
million. In addition, other foreign
investments

tion

June 30,

Steel

Dominion Foundries &

dis¬

Bonds

12Mos.to

—Canadian $ §—

Operates

were

% Yield
Based on

Divs. Paid

foreigners in Canadian enterprises
at

Extras for

Years Cash

million.
of

Appro*.
Quota-

Including

investments

investments

direct

The

the

in

follows;

as

$711

the

in the U.

of

lion;

$1,644 million of which the Cana¬

were

S.

Railways

dian equity was $1,073 million. Of
the $1,644 million total, $119 mil¬
lion

direct

dian
U.

close

29

page

CANADIAN PROGRESS AND

investments,

dilrect; abroad included;
Stocks, $723 million; bonds, $203
million; Government of Canada
credits, $1,705 million. The grand

s

.

the

of

As

totaled

1954

Canadian

from

"other thati

million, Africa; $40 million, Aus¬ abroad, direct and other, in the
tralia; $34 million, Europe, and U: S. and elsewhere, was thus
$15 million, Asia. All foreign di¬ $4,275 million.
Direct investments of residents
rect
investments in Canada, in¬
cluding those of the U, S., were of the U. S. in Canada at the end
of 1954 were distributed as fol¬
$6,6*95 million.
Bonds and debentures
of
Since
the
end
of
1954, total lows:
Canadian direct investments steam
railways, $29 million; of
other
abroad
have
increased
by $112
corporations, $581 million;
million more, $45 million or more capital
stock of Canadian com¬
than a third of this amount in the panies, $3,655 million; other cor¬
first three months of this year porate assets, $1,475 million.
In
alone.
The $45 million compares addition,
other
investments
of
S.
residents
in
Canada
in¬
with $110 million of direct in¬ U.
vestments made by foreigners in cluded: Government and munici¬
Canada in the same quarter. In pal bonds, $1,822 million; other
the five quarters ended March 31 portfolio investments, $1,758 mil¬
last, direct investments by for¬ lion, and miscellaneous invest¬
eigners in Canada increased $520 ments, $302 million, for a grand
million.
total,
direct
investments
and

this

figure^ however, was $872 million,
that is, roughly about two-thirds

million.

Continued

Thursday, September 27,1956,

.

Dividend

for stock dividends,

splits, distributions, etc.

paid in U. S. Currency,

b Bid.

I

,

vtiiiii!iiiiiiiiiiiiiiiiiiiiiiiiiiiii<iiiiiiiiiiiitiiiiiiittiiiiiiiiiiiiiiiiiiiiiitiHiiiiitiittiiiiiiiii«Hiiiiiiiiiiiiti<iiiiiiiiiiiiiiiiiimiiiiii»tfiiiiiii!iiniiiHiiiHittiiiiiiiitititttiiiitii<iiiiiiiiiiiitiiiiifi<iiiiiiiiiiiuitiiiiiiiiiiiHiiiiiiiitiiiiiifiiiiiii«iiiiiinutt

Watt & Watt

New York

Buffalo

Incorporated
Montreal
Members National Association
of

Fort William

Security Dealers, Inc.

Burns Bros. &

Port Arthur
70 Pine

Denton, Inc.

Street, New York 5, N. Y.
Loudon, Ontario
WHitehall 4-3262

■

Bell System

37 Wall Street, New York 5, N. Y.

Teletype N. Y.

1-374

j

Underwriters

Distributors

—

Dealers

Canadian Securities
BONDS

Goodwin Harris & Company, Limited
.

'•

1

•"

MEMBERS

■

Toronto Stock

;

'

v

.

Exchange

The Investment Dealers' Association

347

Bay Street

regular

Provincial,.

External and

on

commission

all

traded

or

funds,

>

:•

Orders Executed

in

net.

at

Broadway
Wire




Canadian

Exchanges

New

Affiliated with:

&

Co. Inc.

Burns Bros. & Denton, Ltd.

Burns Bros. & Company, Ltd.

Toronto, Canada
Members

Toronto, Canada

Toronto Stock Exchange
Canadian

4-5210

New York Affiliate
Bell Teletype NY 1-1012
to

on

—

„

New York 6, N. Y.

Telephone WOrth
Direct Private

Internal

regular commission rates

Affiliated with

Goodwin Harris

Municipal

STOCKS

Canadian Exchanges at

rates

-

of Canada

SARNIA, ONTARIO

York in United States

149

—

Toronto, Ontario

Branch Office

Orders executed

>

Government,

Corporation

•

Toronto

Montreal

Stock Exchange

Ottawa

Winnipeg

Hamilton

»j(iitiiiiiiit.iMiiiiiuiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiuiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiJiiiiitiiiiiiiiiiiiiiiuiiiuuAiiuuiHiiuuiiuuiuiiuuuuiiiiiiHttHiiiiiiiiitiiiHiiiiiiiiiitmHiiiittniniintMtiiuniiiiitiaLs

Volume

184

Number 5572

Continued

CANADIAN PROGRESS AND
PROSPERITY
secutive

tion

Paymts. to

June 30,

June 30

12 Mos.to
June

1956
19569
—Canadian $ §—

30,

Of tie United States Economy

Based on

Years Cash

'

.

dollar

14

b22y4

3.00

6.7

b53

*1.50

term

3.7

Canada

Ford

Ltd.

Co.

of

Co.

variety
products

pa,per

0.90

13

1.30

3.9

b23

contrac¬

Companies, Ltd

Wide

36%

3.6

*

lumber

and

synthetic yarns and fabrics

A. J. Freiman, Ltd
Owns

&

ment

operates
in

store

bl5

6.7

28

1.00

11

largest

4.3

depart¬

Ottawa

'

h■

Power

Hydro-electric

19
in

energy

1.20

16

Co

0.40

,

bonds.

Petroleum

Eastern

Quadruple

Canada

General Steel Wares Ltd
Household

rant,

8%

Among

4.9

hotel, restau¬
hospital
equipment;

the U. S. amounted to $273

Goodyear Tire & Rubber Co.
of Canada, Ltd
30
Natural

and

4.00

3.0

135

petroleum

vestments

synthetic rubber

Mackay

Stores

r

Manages

subsidiaries

tribute textile

which

32

0.50

8%

5.9

-

products and allied

goods

portfolio
holdings of foreign securities were
concerned, it should also probably
L So

Copper

producer

in

British

10

^

16

*0.50

3.1

far

as

in
Israel

floated

State

of

Grand & Toy Ltd

and

13

stationery &

&

business

b35%

1.40

3.9

of one country

U.

forms

Manufactures
bleached

Co., Ltd..

newsprint

and

10

50%

1.60

Wholesale

;

;

Co., Ltd."B"

distributor

3.2

un¬

sulphite paper

Great West Coal

of

10

57

2.50

9%

0.40

♦

Quotations
June

.

life, accident

Atlantic

.

R.

The

U.

Subsidiaries

S.

of

Soo

Much

of

the

direct

Canadians in the

investments

U.

Line),

S. is

con-

Wisconsin:

,

of the

Another

Minneapolis,
(the-

the

and

Central R. R.

16 Companies

0f

South Shore &

the

R.,

S. S. Marie R. R.

St. Paul &

16 companies

Shawinigan Water

& Power Co.,

stocks of
1954 were

in

unusuai

p0rtant

rate.

There

Canadian

16

are

companies,

im-

in-

not only the largest privately.

~iprtrir»

ntilitv

in

Canada

owned electric utility in Canada
Continued on page 32

the

stocks

f

held

in

the

year.

big concentration of Cana¬
holdings of other foreign
securities estimated at $303 million
The

to

that

June

date.

30,
Bid

sale

1956
and

ask

prices

or

the

quotations

last

are

sale

altogether in 1954, was of course
million of total holdings

of

as

1956.

the $103

b Bid.

\.r

Dividend

assets, not just those in the U. S.
total over $4.6 billion and their
net income aggregates altogether
mQre than $240 million annually,
a single company, the Canadian
Pacific Railway, holds slighly over
a half of the total assets of these
ig Canadian companies although
it accounts for only one-sixth of
their aggregate annual net income-,

short-term Treasury issues.

0.9

282

and

§ Add current Canadian Exchange Rate.
*

seen

dian

represent

prior
30,

be

course—can

fr0m the fact that their aggregate-

The $89 million in
U. S. bonds, held by Canadians in
1954
were
also
exclusive
of

policies

price
•tt.b

of

range

health

of

earlier

4.2

lignite

Great-West Life Assur. Co.—

companies

S.

tion

.

coal

Wide

of

higher than the projections of an
earlier survey made in 1939 on the
basis of known trends in
book
values and the extent of liquida¬

throughout Ontario

Great Lakes Paper

other interests in this

or

the other, both R. R., the Duluth,

on

must be added up.

Canadian

Canadian holdings of the

gen¬

distributes office supplies and

furniture

a fraction of the total number
Canadian companies with sub-

sidiaries

The
portfolio
investment
of Since it may be questioned perCanadians in the securities of the haps how "typical" this company
S. totaled $579 million or less may be of Canadian investment ia
than
half the
$1,256 million of the U. S., it must be borne in
their direct investments in this mind that of total direct investcountry in 1954. Likewise, the ments of Canadians here fully
portfolio investments of Ameri- 25% is in either railways or utilicans in Canada that year at $1,758 ties and of the CPR's total trackmillion was less than a third of age of about 22,000 miles, nearly
their direct investments of $5.7 5,000 are in the U. S. "
billion. Naturally, of course, for
The CPR has four subsidiaries
the full impact of the investments in the U. S., the Aroostock Valley

^tofe^/th^U^nrymillfnn in centratedwhich have grown firms,
/n
in a relatively few at an
mates
of
the
$490
million
of

commercial

strength

and

16 Canadian comnanies

u.

some

eral

0f

size

relative

The

Co¬

lumbia, Canada

Manufactures

companies.

country

.

affairs.

the

in

growth
of
subsidiaries
petroleum field.

dis¬

Granby Cons. Mining, Smelt¬
ing & Power Co. Ltd

petronearly

mining and
U.
S. had

quadrupled since 1947 with much
of the increase represented in the

Ltd.

"B"

in

the

in

leum

products

Gordon

million

pipe lines made
up much of the balance of around
$120 million. Canadian direct, inand

refrigerators, etc.

^

Canadian

utilities,

the

investment in railroad facilities in

utensils;

and

-

•

Bank
to

\It is the figure for direct foreiSn investments rather than for
other foreign portfolio investrnents that tends to give the
clearer picture in the case of both
Canada and the U. S. of the extent
to which their nationals and corporate enterprises have succeeded
in obtaining a business foothold in
the other's market and economic

and

U.S. Mining:

in

super-,

only

International
Canada and

.

.

,

Investments

operating"
in the

plants and,
of them, 154

75

one

been subscriptions to issues of the

■
_

Gatineau

can

three-quarters

17

Fraser

another

in

abroad

of

case

of the*?**

direct

Canadian

be noted that about
of
the
total
of
$1,256 million at the end of 1954
was the U. S. Industrially, by far
the largest part of the investment,
$420 million, was in brewing, distilling and beverage industries?
Bulf many other forms of industry
and commerce, notably the manufacturing of agricultural implements, were important.

it

way,

"

Canada

of

general

and

4.0

125

r

Ltd.

V

5.00

24

Engineers
tors

Mone—

total of $14.5 billion
liabilities.

investments

Canada,

manufacturer

Foundation

International

summarize

To

"B"

Automotive

than

America. Prominent among the
additions to the bond holdings
of Canadians in recent years have

or a

for gross

rain Insurance etc.

Motor

assets,

million,

Federal Fire Insurance Co. of
Sells fire,

of non-residents,

tarX. -^und and

candy chain

Operates large

holdings

$400 million, and Canadian short29

subsidiaries in the U. S.

markets, but also have a substan¬
tial
interest
in 25
other U. S.

1956

Fanny Farmer Candy Shops,
Inc.

eluding two which are themselves
subsidiaries of English companies,
that have not only established a
total between them of exactly 50
more

Quota-

Extras for

Divs. Paid

•

1

30

page

% Yield

Including

No. Con-

~

from

Canadian Investment Penetration

Approx.

Cash Divs.

;

31

(1311)

Financial Chronicle

The Commercial and

...

of

-

„

paid in U. S. Currency.

$210

invested

Continued

on

32

page

public

and

John A: McFadven & Co., Limited

million in foreign stocks
in the petroleum products

utilities

of

INDUSTRIAL, MINING AND

Latin

OIL SECURITIES

25

EMpire 4-5161

King Street West
Toronto

vs.'-.y>'-;Vc-::

Gairdner %

jk.

320

IS*

Member

Company Limited

The Toronto Stock

I

Exchange

Bay Street, Toronto, Canada
BRANCH

We

»

provide

a

—

22

Jarvis

Erie,

Fort

St.,

Ontario

complete service for corporate
Private enquiries from

financing in Canada.
dealers

are

invited.

*

Members
The Toronto Stock

Exchange

Montreal Stock Exchange

Canadian Stock Exchange

Winnipeg Stock Exchange

BELL, GOUINLOCK &

COMPANY

LIMITED

Vancouver Stock
•

•'
;

■'

.

c

Exchange

,

ESTABLISHED

f

1920

-

25 KING

STREET WEST, TORONTO

Affiliate

'

'

v ''

-

' /V

Gairdner 6
60 Wall

CANADIAN INVESTMENT

Company Inc. *

SECURITIES

Street, New York 5, N. Y.

Member:
The Investment

AFFILIATES

Dealers'

Montreal

Kingston

Association

Hamilton

Kitchener

Calgary

Quebec
•

London

Edmonton

Vancouver
Winnipeg

BELL, GOUINLOCK ft CO.
INCORPORATED

of Canada




New York
64

Private wire system

,

WALL STREET

NEW YORK

LEGGAT, BELL,

GOUINLOCK

LIMITED
MEMBERS MONTREAL

STOCK EXCHANM

MONTREAL

32

(1312)

The Commercial and Financial Chronicle

Craft Corp. and Chivas Bros. Im¬

Continued from page 33

Continued

port Corp.
Hiram

Canadian Investment Penetration

electric

of the

one

largest hydro¬

those

are

three

of

firms

producers

U. S. and

interest in two other

an

Canadian

and

in

Breweries

the

Ltd.

U. S.

companies, Midwest Carbide Their total assets about $830 mil¬
Corp., in which it shares owner¬ lion, also account for nearly a

ship
equally
with
National
Cylinder Gas Corp., and Shawini¬
gan Resins Corp. which it owns
jointly with Monstanto Chemical
Co.

Midwest

Carbide

manufactures

calcium carbide in plants at Keo¬

kuk,
Iowa,
and
Pryor,
Iowa.
Shawinigan Resins turns odt poly¬
vinyl acetate resins and emulsions
in Springfield, Mass., and expects
to

double

production

with

the

building
of
a
new
plant
in
Trenton, Mich. It also owns Gelvatex

Coatings

Corp. which

manu¬

factures vinyl-base paints at Ana¬
heim and Pasadena, California.

Distillers

Corp.-Seagrams Ltd.

Just lacking one of half of the
total number of U. S. subsidiaries
these

of

that

16 Canadian companies,
is, 24 of the 50 subsidiaries,

fifth of the total assets of all the
16 companies.

and

distributors

•

and

gin

where

alcoholic

has

facilities

it

in

the
to

PROSPERITY

of

U.

Cash Divs.
No. Con-

million

secutive

altogether.

option

an

on

a

of

Enquiries invited regarding Canadian

a

There

two

are

Wide

General

Preferred and Common Stocks
/

•

;•*

ry.

'

of

Aurora,

Hallnor

Business Established 1912

j ".X'/y Kf r'jyU

&

kitchener

london
Members of

;;

YOU

Continued

ster"

of

,

2iy2

in

variety

Hendershot

0.675

0.60

14

1.50

27

5.6

1.25

29

4.3

23

1.80

b45

4.0

41

0.24

26

0.9

22

5.50

86

6.4

92

1.40

37

3.8

81

1.70

56

3.4

16

Paper

cluding containers
products

and

Wide

1.20

b25

4.8

55

&

Dauch

1.75

68

2.6

.

boxes, etc.

in¬

corrugated

Paper Co.

Ltd

variety

,

of

paperboards,

•.

_

Hollinger Consolidated Gold
Mines, Ltd.
Ontario

7.5

•

-

Products
products

paper

Canada

amazed

at

Canada's

the

speed and

gold

producer

Hudson Bay Mining &

Smelting Co. Ltd
Manitoba

copper

zinc

&

products

Lends
money
on
first mortgage
security and operates deposit and

compa¬

debenture accounts

Imperial Bank of Canada
Operates
out

234

branches

through¬

Canada

Imperial Flo
Litd.

Glaze

-

-if-

Paints

i

Varnishes, "'aacquers,
paints, etc,.1'
■

enamels,

Imperial Life Assurance Co.
of

Canada

i-ssi

Comprehensive
dowment

Superior

♦

and

Quotations
price

represent

prior to
30f1956.

June

of life,
policies

range

term

June

that

date.

en¬

^

30,

1956

Bid

and

sale

prices

ask

or

the

quotations

§ Add current Canadian Exchange Rate. '
'
t Adjusted for stock
dividends, splits, distributions, etc.

33

recent

are

b Bid.

,

of

economic

progress, and the opportunities it
provides for their own expansion.
You

are

invited

to

Greenshields & Co (N.y.) Inc

receive the

monthly Commercial Letter of

-

Specializing in Canadian Government

The Canadian Bank of Commerce;
It

supplies up-to-the-minute

facts

on

Canadian

Provincial, Municipal and Corporate Securities

materials,

raw

•

••

finished

products, and sales
possibilities—new industrial

'

'

•

"

f\
'
.

64 Wall

developments—current commercial

•

.

'

it-„•

Street, New York

trends. Your letterhead request
We do

not

will
bring this Letter to you
regularly. Write to our Business
Development Division, 25 King

advise

regarding specula¬
tive securities.

Canadian

COMMERCE
Head Office

New York

Resident

Business established 1910

THE CANADIAN BANK
OF
•

*

Greenshields & Co Inc

Street, W., Toronto 1, Canada.

;

Affiliate

San Francisco

•

Los

—

Representative—Chicago, and




Montreal

Toronto

Angeles
more

•

Seattle

•

Portland, Ore.

than 725 Canadian Branches

'

.

X

■

Ottawa

Quebec

Sherbrooke

last

are

;

extent

5.0

"Axrain-

of automotive parts

Manufactures

13&

rugs

Ltd.

of

6.2

products

CANADA?

Visiting U. S. executives

4.6

3.25

OR SELLING
IN

3.2

21

seamless

"Wilton"

and

Wide

Hinde

0.20

-

BUYING

ANYWHERE

>

15

Ltd._>_*.

textile

Hayes Steel Products Ltd

The

on page

1.00

18

Huron & Erie Mortgage Corp.

Lake

37V2

producer

variety

Specializes

Co., operate coal mines in
West Virginia. The third, Fiborn

hamilton

gold

Harding Carpets Ltd

a
project' for
low-grade iron
Two of Algoma's

Co: and

fl.20

'

10

Wide

subsidiaries, Cannelton Coal

Coke

10

variety of

Hamilton Cotton Co.,

Coal

The Investment Dealers' Association of Canada
The Toronto Stock Exchange
>
"

ARE

properties.

U. S.

44 King Street West, Toronto

of

2.7

f

Mines, Ltd

Ontario

Minn.,

beneficiation
ore

■

7.6

0.62^ 22

,

at Mather, Pa., from which it de¬
rives coal for coking but it has a
10% interest in Erie Mining Co.

Limited

5

10

Manufactures large
metal products

of Canada
Ltd. has only one U. S.
subsidiary,
the 100% owned Mather Collieries

!

1956

1956^

0.25

fiduciary business

Hahn Brass Ltd

Corp. Ltd. The Steel Co.

Bankers Bond corporation

June 30

.

Building materials; gypsum and
lime products;
industrial chemicals, etc.

nies in the group of the 16 Cana¬
dian companies, the Steel Co. of
Canada
Ltd.
and
Algoma Steel

Government, Municipal and Corporation Bonds

variety of wire products

Gypsum, Lime & Alabastine,
Canada, Ltd.

construction

big steel

1956

on

Paymts. to

30,

28

Greening (B.) Wire Co., Ltd.

too, has taken
plot at

Md., for
brewery there.

tion

June

30,

Based

19

Guaranty Trust Co. of Can._

70-acre

Baltimore,

June

Quota-

—Canadian $ §—

expansion plans of the subsidiary
company
also
call
for
another
plant in Atlanta, Gas., by early
1958. The company,

12 Mos. to

Divs. Paid

capacity of four

barrels

Extras for

Years Cash

Corp.-Seagrams Ltd.
The U. S. subsidiaries of this
distilleries and nine
company, all 100% owned, include
rectifying and bottling plants in
Hiram
Walker
&
Sons
Inc.
this country through its wholly(Mich.);
Hiram
Walker
Inc.
owned Joseph E. Seagram & Sons
(Del.); Hiram Walker Distributors
and its subsidiaries, an empire of
Inc.
(N.
Hiram
WalkerY.);
11
companies
altogether. These
Gooderham & Worts Sales Corp.
U. S. subsidiaries also held 146,000
(Mass.); Hiram Walker Properties
net acres of oil and gas leases in
Inc. (N. Y.); Gooderham & Worts
Oklahoma, Louisiana and Kansas Ltd.
(Del.); James Barclay & Co.
producing 2,400 net barrels of oil Ltd.
(Del.); Associated Distillers
daily.
Inc.
(Del.); the Frank L. Wight
The U.
S. subsidiaries in the
pistilling Co. (Md.), and W. A..,
Distillers
Corp.-Seagram
group Taylor &
Co., (N. Y.).
include
the
House
of, Seagram
Canadian Breweries Ltd.
Inc., Gallagher & Burton Inc.,
Browne-Vintners Co. Inc., HunterCanadian Breweries Ltd.'s U. S.
Vintners Co. Inc., Calvert Distil¬
subsidiary, Carling Brewing Co.
ling Co., Julius Kessler Distilling Inc.
(over 99% owned) has plants
Co. Inc., Paul Jones & Co. Inc.,
in Cleveland, Ohio, St.
Louis, Mo.,
Frankfort Distilleries Inc., Pharma
Belleville, 111., and Natick, Mass.,
annual

% Yield

Including

distill

163,000 U. S. proof gallons daily.
main plant at
Peoria, 111., is
the largest distillery in the world.
Besides another distillery of
36,000
gallons daily capacity at Peoria,
it has one of
5,000 gallons daily
capacity
at
Lovely,
Md.,
and
wineries with a fermenting capac¬
ity of 522,000 gallons in California.

an

Approx.

u

S.

16

Securities

31

Its

with

Canadian

page

CANADIAN PROGRESS AND

Distillers

operates

from

Canada, is, through sub¬
one
of four principal

whiskies

beverage business, Dis¬
which
has
a
sales
subsidiary, tillers Corp.-Seagrams Ltd., Hiram
Shawinigan Products Corp. in the Walker-Gooderham & Worts Ltd.,

enterprises in the world,

&

Worts Ltd., the second
largest dis¬
tiller in

sidiaries,

Of the United States Economy
but also

Walker-Gooderham

Thursday, September 27,1956

...

Toronto

as

sale
of

Volume 184

Number 5572... The Commercial and Financial Chronicle

(1313)

Continued from page 32

CANADIAN PROGRESS AND

Moore Corp. Ltd.,
business forms,

Cash D!vs.;

V

No. Con*

Extras for

Quota*

secutive

12 Mos. to

tion

June 30.

June 30

19564

Canadian Investment Penetration
Of the United States Economy

Approx.
% Yield
Based on
Paymts. to
1956

Including

June

30,

1956

Divs. Paid

—Canadian $ §—

57

Imperial Oil Ltd
With

subsidiaries comprises
integrated oil enterprises

i

1.00

ada,

52%

1.9

and

.

I

45

"Ord."

Ltd.

0.575

5.1

11%

»pi_

Operates
bakeries
in
Ottawa, and Montreal

r

..

International

Subs. Can. &
heaters,
oil

mfr.-

co.

water

in

t

Mather

Vv.

.

41y4

3.8

*

U. S.
trade

^

Nickel

Co.

*3.95

11

*f2.96

mary

...

Holding

.

erates

and

pulp

operating
and paper

located

s.

u.

the

at

noints* Niagara Falls

Buffalo N

following

Elmira and

Y • Dover N H • Thur-

an 1,149-mile mont and Snow Hill,Md.; Marion,

capable of trans-

City,

Iowa

Ky.;

Iowa;

Kahoka,

Ontario

•

°rude oil daily to Eastern re-

Mining

MlTm?g

a

nc\

19

Or3*

innk

.

Massey-Harris-Fergdson

+ro' ^a;;

I Hills,; Mich,; Palmer Mining Co.,
Palmer, 'Minn.; Balkan Mining
Co., Bovey, Minn.; Lake Mining
; Co., Biwalbek, Minn.; Ontario Iron
t
Co., Aurora, Minn.; Utica Mining
•; Co.,' Hibbing, Minn.; Iron Range
\ Mining Co., Mineral Hills, Mich.,

in

,

Canada

the

and

Listed

U.

S.

*

■

•

Companies Which Have Paid Consecutive

Dividends From 5 to 10 Years Appear

1

in the

MAJOR & COMPANY
Members

Montreal

and Western Mining Co., Grand
Rapids and Mineral Hills, Mich.
British American Oil Co. Ltd.,
a completely integrated producer
and distributor of petroleum
products and recognized as the
:
NUmber Two Company in the
Canadian oil industry, obtains a
substantial portion of its crude
oil requirements for Eastern
•: Canada through a U. S. subsidiary,
British-American" Oil Producing
Co., which has producing propert ties in California; Illinois; Kansas;
Oklahoma; Texas;" Wyoming;
£ Louisiana; New Mexico; Colorado;
Montana; Arkansas; Nebrasks, and.
Mississippi.
■'.! r Its- Toronto Pipe Line Co. owns
450 ; miles of gathering lines in
Hlinois,
Indiana, Montana
and
Texas. / Besides
serving British

Stock

Table

Starting

Page 40

on

.

Exchange

<

Second

Canadian Stock Exchange

-

Petroleum

International
Ltd.
.v"

Co.

oil producer and

American

refiner

j

*1.25

•

'.y'v'Jl■■ '

* 13

and development df
natural gas and electrical compa-.
nies in Alberta
-■■■ A.

v

/•

'

3.3

51%

1.70

Management

?

,

-

«

.

">

}

-•

.

^

.

\

13 .%■' 2.00v

4.8,

42

Management type investment
■>';

trust

Publishing
Ottawa, Ltd.

,
*

of

Co.

_40

Ottawa

13

^1.00

0.80

Journal"

6.3t

V

•

Kelviriator of Canada, Ltd...
Complete
line
of
home
ances, parts and repairs

bl6 :

1.00

17

Publishers "The

Private Wire to Maritime Provinces

-

>

Investment Foundation Ltd..

Journal

ORDERS EXECUTED ON ALL CANADIAN EXCHANGES

-

■

.;■>

International Utilities Corp._

3.6

C

i

.--

L; v
34%

:

♦

39

——

South

14

7.1

■'

"appli..

CANADA BUILDING
455 CRAIG ST., WEST

MONTREAL

•

Telephone

UNiversity 6-1611

-

Kerr-Addison

Gold

Mines

Ltd.
Ontario

gold producer

19%

4,2.

22

5.0

;r

Aiherican
John

Labatt

Ltd....

1.10

12

General brewing business

„

♦

.

^

30,

1956.

!'

.

S Add current Canadian Exchange Rate.
•Dividend

,

-

^ Y;\'u ".y

,

'

?

•

t

on

the

in

U.

S.,

it

.

-

Flood y Company

carrier for

producers.
a

Brit-

third in-

Members

Trans-Northern

MONTREAL STOCK EXCHANGE

CANADIAN STOCK EXCHANGE

TORONTO- STOCK EXCHANGE

.

*

■.

Continued

in

comomn

Pipe
Line; an 18% interest in Port¬
land Pipe Line Corp. and a 15%
interest in Platte Pipe Line Co. >

;; v"

paid in U. S. Currency.'>

a

other

ishrAmerican also has
terest

-.7

Adjusted for.stock dividends, splits,"distributions, etc. ?
t Inactive issue, no Exchange trading.
;
■
"
bBid.
-v:;- Vf
Y *

wells

as

numerous

.y,.

■

also acts

j

;/:V:

Quotations represent June 30,. 1956 sale prices or the last sale
price prior to that date. Bid and ask quotations are as of
June

page

Portland

;

Pipe

Line,

together

'"with Montreal Pipe Line Co. Ltd.,

34

M,

H.C. Flood &? Co. Limited
INVESTMENT SECURITIES
:r;;;

*. •

.

*

■- ■
•

•

'•

•_

.

+

■

'

•

:V.

•

•'

MEMBER OF INVESTMENT DEALERS'
•
'

.

Canadian Government,

ASSOCIATION OF CANADA

•

Municipal
360 St.

Public

PLateau 4871

James Street, West, Montreal

Utility and Industrial Securities
■

...

..;v,

.

*

•;

.

.■.

Canada-wide service, with offices at:
Montreal, Que.

Toronto, Ont.

Winnipeg, Man.

Quebec, Que.

Ottawa, Ont.

Calgary, Alta.

Halifax, N. S.

Hamilton, Ont.

Edmonton, Alta.

Saint

St. John's, Nfld.

Vancouver, B. C.

John, N. B.

Charlottetown, P. E. I.

:

INVESTMENT

Victoria, B. C.

Underwriters

—

Business

Distributors

Dealers f

-

:

Canada has much to offer in the field of

E»tabK»Ii«dhtD^I?-^|®^^*'?'<r*1

Royal: Securities Corporation Limited
i

.

i

.i

.

> 4

244-ST* JAMES JSTREET WEST,




MONTREAL 1

IN

CANADA
14

..

,

V
i

investment securities^ We

sond you

shall be glad to

a1 selected list of Canadian

-bonds, .and preferred and common stocks.
enquiries invited

KIPPEN & COMPANY, Inc.
Members investment Dealers' Association

of Canada

Members:

Montreal Stock Exchange

l

Ltd.,

f -Minn^ James Mining Co., Mineral

131%

co.—Op--

mills

/iditio™.to Sp.e Line operates
Erie Mm- 20-mch oil line

and

Platte

2.2

97

'and operating co.—-Pfioperations
at mines
and

;
smelters near Sudbury, Ontario
International Paper Co

Refinery.

4.1

of
23

East

Lake fining centers. A 70-mile 12-inch iarges^ producer of farm machinMine,^Crystal Falls, Mich.; Olga crude oil pipeline (50% owned) ery in the British Commonwealth
^aLCo., Coaiwood, \V.Va.] Fly- c o n n e c t s British-American oil but second largest in the world,
■iMich!?
'<****> with the Platte has an incpiporated^ubsidiary of
i
Mich.;' Huron Land Co., Aurora, Pipe Line at Gurley, Neb.
Continued on page $4

Holding
-

i}

Montreal

Rpnn^r Minini' nl" Porting 195,000 barrels of Rocky Mo.; Denton, Texas, and Salem,

Wakefteld'Mich

<

"

Canada, Ltd.
;

Collieries

hJI'rv31 Pa

\

1.60

14

.—

equip, etc.

International

plies the bulk of the crude re-

,

coai 311(1 ore proper- quirements for British American's

t

0.75
'
v.;'.

"A" Com.

Holding
r

.

18

__

,

Indus-

Metal

tries Ltd.

;

o

..

ties in which Steel Co. of Canada

Toronto,
.

tt

Ane u*

■

Tobacco,, cigars and cigarettes

Inter-City Baking Co., Ltd.

.

86% of whose business is in the
U. S., has two wholy-owned U. B.
Co., works limestone in which British American also
subsidiaries, Moore Business
dolomite quaries in
Michigan, has an 18% interest, operates a Forms Inc. and Kidder Press Cp.
a
(\w
crude oil pipe line from Portland, Inc. These companies have a toand O e P operties in the
Maine, to Montreal, which sup- tal of 16 plants altogether in tbq

Imperial Tobacco, Co. of Can¬
.

manufacturers
such as con¬
tinuous
interfold
forms,
sales
books and speediset forms for
unit accounting records, also of
paper boxes and printing presses,

Limestone

full

.

Moore; Corp., Ltd.'s 16 IT. S. Plants
of

PROSPERITY
Years Cash

33

Canadian Stock Exchange

The Toronto Stock

Exchange

607

St. James Street West,

Montreal

UNiversity 6*2463
Direct Private Wire between Montreal, Toronto

34

(1314)

Continued from page

eluding subsidiaries in the U. S.,
Canada and Latin America, is tiie

33

Harold

ian Investment Penetiation
the

same

located

plants

in

name

in

the

U.

S.

Batavia,

with

N.

Y.;

(Ferguson Works) Detroit, Mich.;
Racine, Wis., and Fowler, Calif.
Georbe Weston Ltd.'s U. S. sub¬

sidiary,

Weston

Biscuit

Co., op¬
erates biscuit
plants at Passaic,
N. J.; Battle Creek, Mich.; Burbank,
Calif.;
Fort
Worth
and
Waco, Texas; its Southern Biscuit
Co. division at Richmon, Va., and

only last year to establish a $16.5
million plant in Michigan to pro¬
hardboard

duce

board.

Canadian

and

American Biscuit and Cracker Co.

of

London, England,

<

unconsolidated

Cana¬

dian

subsidiary, Loblaw Grocetarias Ltd., owns a 55.% interest
in Loblaw Inc. (U. S.) and a bene¬
ficial ownership of 577,867 shares
or

about

mon

of

fourth of the total

a

National

Tea

Co.

com¬

(U.

S.)

outstanding. Loblaw Inc. operates
154 supermarkets in western New

York,
and

northwestern

Pennsylvania

northeastern

owning

Ohio

bakery

a

house

in

Syracuse

warehouse

besides

building

warehouse in Buffalo and

a

and

ware¬

in

MacMillan

&

which conducts

B 1

a

o e

d

1

e

world-wide

Ltd.,
mer¬

chandising and shipping business
in timber products and
through
divisions and subsidiaries not only
engages in logging but also man¬
ufactures
lumber, plywood and
sulphate pulp, has three U. S
subsidiaries, MacMillan & Bloedel

Paper

assets

Corp. Ltd. of
equal to more

than half of the total assets of the

all managed by Bo¬
of .North America
subsidiary. Bo¬
water • Southern
Paper Corp., a
U. S. subsidiary was formed in
1954 to operate a plant at Calhoun,
Tenn. with a capacity of 300,000
tons of newsprint a year.
Other
company, are

water

Ltd.,

U.

Corp.

Canadian

a

subsidiaries

S.

of

the

Bowater

Organization are Bowater Paper
Inc., a sales organization, and

Co.

Fibreboard

Bowater

and

leasing a
Youngstown, Ohio.

Bowater

Another

London

North

whose

Co.

Inc.

company

American

assets

British

are

Pills. is
and of

toilet

a

one

Beecham's

which

of

of

the

best

known,

large number of food and
In charge of the

products.

company's

overseas

operations, in-

PROSPERITY

than

more

Cash Divs.

in

If

Powell

ahead

with

in

U.

the

decides

River

its

go

Leitch

their

aggregate

assets

increase by over $100 mil¬
and annual aggregate earn¬

lion

by around $12
might be a point of
ings

that

know

nine

have

two-thirds
of the

of

entire

Earnings

in

S.

to

Operates

Chocolate

S.

in

A

or

one-

S.

subsidiaries

list

of 28

U.

be

cited

28

which
have
w h o 11 y-o wned subsidiaries in
Canada total more than $17 bil¬
Canadian

assets

of

' 'Investment

77

255

Dealers'-' Assn.

Bay St., Toronto

•

7'

.

»",

of

Canada

> The 20 U. S. companies with the
wholly-owned subsidiaries, carry¬
ing, in each case, the same gen¬

EMpire 4-8471
.'V

■

"i v/;v

7

Branch—Brantford, Ontario

■

•

eral

name

following: Firestone Tire
Co.; the B. F. Goodrich
U. S. Rubber Co.; Swift &

Ontario

H.

STREET

WILLIAM

SIDNEY

gold

and

Owns
arena

lumber

Ltd.,
controlled by Goodyear Tire

79%
&

Rubber

Canadian

Co.

of

Akron,

Chemical

&

Ohio;

Cellulose

Co.

Ltd., 80% controlled by Celatino, a wholly-owned subsidiary
of

Celanese

McCall

Corp.

58.95%
the Texas Corp.

Company

of

Frontenac

(Canada),

.

Exchange

Association

King Street West,
TORONTO




36

7.1

0.50

b8%

5.9

line

Complete
and

ments

10.2

il

/

j

12

5.00

bl20

4.2

picture

Massey-Harris Co., Ltd.
of

0.60

11

7%

7.6

/imple¬

farm

machinery

/7y;. 7

McCabe Grain Co., Ltd.

'B"_

bl8

3.9

1.25

55

2.3

40

grain

0.70

13

General

3.00

80%

3.7

10

7

dealings

McColl-Frontenac Oil Co.
Ltd.

/ Oil

production,

and

refining

distribution

Mclntyre Porcupine Mines,

♦

gold

Quotations

price
June

5 Add
"

producer

7;

represent

prior
30,

to

that

30,

June

date.

sale

1956

Eid

and

or the last sale
quotations are as of

prices

ask

1956.

current Canadian Exchange Rate.

Dividend

■■.777,7 '•,

paid in U. S. Currency,

b Bid.

77'-'77 '7

*■/

How You Can

Oil

America;
Co.

Ltd.

controlled

by

Canada

No

other

years as

mining

has

area

seen

No part of the mining

growth.

7

',-V'

trolled

James

Street

by

South,

HAMILTON

S;

or

Co.

firms

other

with

subsidiaries

corporate

Canada.

7

7'.

world holds such rich promise for continued
* •' 7

-•

\ *:'"~',7,'

•" /7/:-77' 7,7:

;"7 v7/;7f/

■;

No other country offers Americans similar opportunities for invest- 7
ment

and

for the

speculation, such similarity of custom, speech, and respect

rights of capital.
with

the

7

**

possession!

covers

of

swiftly-moving

the

v,

-

mining

fields

'Canada is provided weekly by The Northern

Mining

in

largest

mining

of

Miner.

circulation

in

hoW thoroughly and dependably it

its field.

interests

and

in

Canada

$2,000,000,000 worth

Ford Founda¬

tion; and Du Pont Co; of Canada
Ltd., 82.3% owned by du Pontrde
Nemours & Co.
All these U. S.
companies. of
course
represent
only a small part of total Ameri¬
can

10

77...

■

con¬

(N. J.); Ford of Canada whose
voting stock is held, mainly by
the Ford family

^;:"'

'

''7/7'

the world proves

Ltd., 82.58%
Standard
Oil

such solid expansion the past

that of Canada.

Contact

Co.

Keep in Touch

With Canadian Mining

Its

Petroleum
of

INVESTMENT SECURITIES

66

bl8*Y4

2.45

7

Ltd., 69.6% controlled by Standard
Oil
Co.
(N.
J.);
International

Members:
Stock

1.30

theatres

General Electric Co.; Imperial Oil

Dealers'

0.25

11

Theatres, Ltd.

Owns two Toronto motion

-,'

Also, Canadian General Electric
Co.,
Ltd.,
99.4%
controlled
by

LIMITED

Montreal

2.3

name

Tire & Rubber Co. of Canada

Investment

43%

Inter¬

eight controlled subsidiaries
are: Canadian Westinghouse,
70%
controlled
by
Western Electric Corp.; Goodyear

HATCH

The

1.00

operates Toronto sports

of same

Marcus Loew's

of the group

TORONTO 1

C. HETHERINGTON

-

3.8

producer

handling;
flour
milling;
operation of bakeries, etc.

Corp.; Great A. & P. Tea Co. of
America;
Safeway
Stores
Inc.;
Johns-Manville Corp.; and Inter¬
national Machines Corp.

'

Telephone EMpire 3-9151

A. F. Francis &

91%

16

Grain

Can
Co.
Inc.;
Co.; International

Corp.;

3.50

business*,

Maple Leaf Milling Co., Ltd..

The

320 BAY

15

Ltd.

Continental

Corp.;^4,£hrysler

SUITE 503

^

national Paper Co.; General Foods

Exchange

Investment Dealers' Association of Canada

.

fou£

companies

Madsen Red Lake Gold Mines

Calif.; Gulf Oil Corp.; the Procter
& Gamble Co.; Union Carbide &
Carbon
Corp.;" General
Motors

Members:

3.1

exporter

Ontario

Can

b4.75

0.15

Coast

17

integrated

large

Harvester Co.; Standard Oil Co. of

\'i.

from

Dec. 15, 1954.

Ltd.

Co.;

The Toronto Stock

on

Columbia

Co.;

American

1.00

28

Ltd.

holding company for

& Rubber

ANDRAS, HATCH 6• McCARTHY

21

Ltd.

Fully

of the parent company,

the

are

4.9

.

MacMillan & Bloedel Ltd."B"

the

other subsidiary companies
controlled by
U. S. firms; total
nearly $1.5 billion.
7/7.

2.0

*

company—newsprint,
lumbering and power interests

eight
Exchange

76%

b20%

*1.50

Holding

companies

The

3.0

York,

Maclaren Power & Paper Co.

S.

The combined total assets of 20 of

17

food

New

Maple Leaf Gardens, Ltd

could

0.5087

confection

other

changed

British

earnings by all
their assets in this

year.

6.2

93/4

v

Name

1955 totaled

altogether

0.60

Lucky Lager Breweries

total
on

and

products

also by a recent study of the US.

of

"self-service"

northern

Pennsylvania and Ohio

Canadians in the U. S. is indicated

in the U.

&0

of "self-service"

Walter M. Lowney Co., Ltd..

very

million

0.76

-/v.//

18

in

Breweries

Dept. of Commerce showing^pjha^
earnings by Canadians on their

5.1

in

34

133

markets

$160

substantial interests,
corporate and otherwise, held by

0.06

b!9%

stores in Ontario

(1954)

Total

1.10

11

-—

trade

Loblaw Inc

these

Million Annually

The

Ltd

chain

Operates

group.

U.

6.0

19

Mines Ltd

"B"

Ltd.

interest

aggregate as¬

3.00

Loblaw Groceterias Co.,

grocery

of

0.18

Shops,

Canada

Eastern

18

sets

18

7

Candy

hardware

Wholesale

-

It

companies have main offices
in
Ontario, six in Toronto, but
that a third as many or only three
with
headquarters
in
Montreal

2.0

gold producer

million.

half

or

Gold

Lewis Bros.,

to

grow

4.90

candy chain in Ontario &

Ontario

consid¬

under

would

course

0.10

Quebec

plans

would

lion.

Stock

1956

on

39

Ltd.
Retail

to

expansion

interests

of

and

17

the

Toronto

1956^

June 30,
1956

gold producer

Secord

Laura

and

companies with
important subsidiaries in Canada.

Members

June 30

Ltd

Quebec gold producer

;

eration

a

SINCE 1909

June 30,

Lamaque Gold Mines Ltd

S., then the number of

American

U.

ft &

Paymts. to

30

Ontario

Against the group of 16 im¬
portant Canadian companies with

SECURITIES

tion

Based

—Canadian $ §—

selected Canadian companies with

country that

INVESTMENT

12Mos.to

Divs. Paid

Shore Mines,

Lake

the whole Puget Sound area.

foreigners

DEALERS IN

Quota-

Years Cash

lumber and
paper,
products, has under con¬
a
project to form a
U. S. subsidiary to manufacture
newsprint in the southern part of
the country.
An important mar¬
ket for
its products now
is in

Arizona,

% Yield

Extras for

secutive

sideration

Texas,

Approx

Including
No. Con-

large
lami¬
other

-

fourth

& Co.

CANADIAN PROGRESS AND

the *

Vancouver

of

nated

$160

Burgess

;4

wood

assets

Charles II.

River,

north

Columbia,
and
a
producer of sulphite pulp,

generally controlled from Canada
is Beecham
Group Ltd., manu¬
facturers of numerous proprietary
medicines

Powell

California,

The Bowater Subsidiaries

The U, S.

divisions, at Tacoma, Wash.
Weston's

insulation

and

Ltd.

Ltd., operator
largest newsprint

world's

at

miles

75

(U. S. A.) Co., Seattle, and Mac¬
Millan & Bloedel Ltd., Portland.
Abitibi Power & Paper Co. Ltd.
formed
a
Delaware
corporation

Co.

&

Co.

River

the

mill

(N. Y.) Inc.; MacMillan & Bloedel

Ritchie

Another. Canadian company,
Powell
of

Of the United States Economy

F.

Continued from page 33

<3

is
a

important
year;

and

sound.

Production

is

over

annual dividends exceed $150,000,000.

'

•

.

THE NORTHERN
Toronto, Canada $7.50

a year,

MINER

$4.50 six months

'

'

SPECIMEN COPY ON

REQUEST

;

Volume 184

Number 5572,..

The Commercial and Financial Chronicle

(1315)

CANADIAN PROGRESS AND

Bank Women Elect

PROSPERITY

National Officers

Cash Divs.

'

,

Approx.

Including

•

% Yield

No. Con-

Extras for

Quota-

secutive

12 Mos.to

tion

Years Cash

June

June

30,

1956

Divs. Paid

Based

Mrs. Bee Bush, Vice-President,
Valley National Bank, Phoenix,
Arizona, was elected President of

on

Paymts. to

30,

June 30

1956 ♦

the

1956

industries

Eastern

in

1.25

3.6

b35

held

;

Corp.,
Deals

Quebec

elevators

Canada

Vice

;

Western

in

other
4

timber

351/4

3.7

12

1.30

b22V2

5.8

11

1.00

16%

6.0

and

"B"-

■f* Ltd.

-

Diesel-electric

and

'locomotives

>

Companies Which Have

Paid

Consecutive

Table

Starting

on

Treasurer:

2.00

11

5.3

38

chosen

Operates general and cold storage
warehouse in Montreal

Moore Corp.

13

Ltd

forms,

advertising

*1.50

471/2

Cole,

3.4

National Drug and Chemical
Co. of Canada, Ltd
of drugs,

0.70

16

II1/2

Middle

6.1

grocery

0.60

bl6i/2

3.6

20

2.00

30

6.7

58

1.40

40y2

3.5

wholesaler

National Trust Co., Ltd

New

also

Quotations
June

represent

June

30,

1956

•

prior

Dividend

now

1

appears

^

In view of the

the

magnitude of the estimated tonnage, as well as
exceptional accessibility and richness of the spodumene, the
has

company

sexamine

the

decided

to

invite

and

property

leading

independent geologists

obtain their recommendations.

to

to

The

also is in negotiation with several leading chemical com¬
panies who are interested in the purchase of lithium concentrate.
company

Green Bay Mining & Exploration is
very optimistic on its earn¬
ings outlook from lithium recovery. In addition, there are indica¬
tions of the presence of gold,
beryllium and columbium on the
Manitoba property and while the quantities involved are
yet uncer¬

M.

tain, it is reasonable to
Miss

that they could improve the economy

assume

of the operation.

Mrs.

setts

Division:

E.
Minor,
Manager, The

paid in U. 3. Currency.

Avenue

Miss

Edmonton, Alberta, Canada

Assistant
First

EXPLORATION, LTD.

Na¬

Boston, Massachu¬
Branch, Boston 15,

Northwestern

for stock dividends, splits, distributions, etc.

/

&

Mass.

Continued

on page

36

Southern
C.

;•

n.»j

-'w.y'i

Division:

Mrs.

Mary Adele Givens, Pro-Manager*
Pullman Branch, Seattle First Na¬
tional Bank, Pullman, Wash.

b Bid.
,

GREEN BAY MINING

Eva

tional Bank of

sale prices or the last sale
ask quotations are as of

30,

t Ad.iusied

Division:

England

Branch

to that date. Bid and
1956.
S Add current Canadian Exchange Rate.

price

Mines, he stated.

estimated.

Michigan,

Katherine

accepts deposits
♦

thus making the operation

that the quanti¬
oxide bearing ore on the
[property may be in the
region of 10 to 12 million tons.' While full assay results are not
.yet available, the grade is expected to be higher than
previously

N.

Mid-West

etc.

ousine3S,

years,

On the, basis of visual estimates it

McBride, President, The Commer¬
cial Bank, Blue Hill, Neb.

Railway cars, automobile chassis,

tVust

spodumene

-

15

Ltd

National Steel Car Corp., Ltd.

General

Irene

of

of

recovery

ties of lithium

Whitby,
Assistant
Vice
President,
The
National
Bank of Olyphant,
Olyphant, Pa.

merchandise

Ontario

Miss

Bank

Atlantic Division:

Mildred

chemical and

National Grocers Co.,

Division:

5

to

and the Colorado School of

Mrs. Evelyn B. Wire-

Union

the

processing mill at Herb Lake. .Plans for a heavy media separation
plant which will be built on the property within a
year, are pres¬
ently being prepared by The Lummus Company, of New York and
Montreal, in cooperation with the Knowles Associates, of
California,

100 Ottawa
Avenue, N. W., Grand
Rapids, Mich.

dis¬

play products, etc.

general

-

were:

Lake

for

funds will be needed for the underground
work,
previously estimated at around $4 million. This will
bring the
figure of $6.2 million down to $2.2 million for the erection of a

39, Florida.
Eight Regional Vice-Presidents

Storage Ltd.

operations

In that case, no

baugh, Auditor, The Miami Beach
First National Bank, Miami Beach

Page 40

pit

a period
of 2
extremely economical.

Iweta

President,

-

open

possible for

were:

Miss

Arizona.

Montreal Refrigerating &

Wholesaler

President:

-

Corresponding Secretary: Mrs.
Ruby
H.
Condron,
Asssistant
Cashier, The Bank of Douglas,
Post Office
Box 2511,
Phoenix,

Dividends From 5 to 10 Years Appear in the
Second

Phillet, President,

Exploration, Ltd,

bearing lithium oxide on the Herb Lake property of Green
Bay
Mining & Exploration, Ltd. in North-Central Manitoba, will be

Arizona.

-

production

Business

Present

Hotel, Min¬
Sept. 18-21,

Recording Secretary: Miss Evva
Shaw,
Assistant
Trust
Officer,
Valley National Bank, Phoenix,

Montreal Locomotive Works,

Listed

Green Bay Mining &

products

Molson's Brewery, Ltd.

related

Statement by Michael M,

Bank

First City National Bank of Houston, Post Office Box 2557, Hous¬
ton, Texas.

fl.30

Montreal brewer
'

Radisson

Minnesota,

Miller, Assistant Vice
10

'
L.
specialty?, papers

Newsprint,

of

5.3

bl9

line

.Minnesota and Ontario Paper

if': CO.

the

Other officers elected

1-00

11
operates

and

grain

Association

1956.

Ltd.

in

at

neapolis,

Midland & Pacific Grain
:

National

Women at its Annual Convention

—Canadian $ §

22

Mitchell (J. S.) & Co., Ltd—
v.>_ General supply house for many

35

Division:

Mrs.

Helen

Wardlaw, Assistant Vice-Pre-

) ju'.

Southwestern

Division:; Mrs.
Riviere, Assistant VicePresident, Tyler Bank
Trust
Co., Tyler, Texas.
v
,

Dollie

The

Toronto

change lists

a

Stock

Ex¬

Where

are

the most

Stoney,

Assistant

Cashier,

The

Continental Bank and Trust Com¬

other two stock

pany, 200 South Main
Lake City, Utah.

in Canada.

Of the

over

of listed

manufacturing

exchanges

»

*

The

shares

$25,000,000,000

more

are

Sept.

than

21,

were
on

in¬

Friday,

1956. Following the

Imperial

in¬

augural talk by Mrs. Bee Bush,
the Convention was adjourned.

shares

Every variety of

breakfast

at

Street, Salt

officers

in Canada's

;

Two With G. R. Jobin

company

rapidly expand- ?

ST.

PETERSBURG,

Witt

is represented

Williams

in the 243

companies in this

complimentary

our

group.
copy

>

:

The

on

Private wire system—New York, Toronto, Calgary

C.

McLamb
have

Fla.— De-

and

Harry

S.

become

Ltd., 242 Beach Drive, North.

R. F.

Green

Campeau Adds

ST.

request.

y\

PETERSBURG? Fla.—Rus¬

B.

laskey
F.

industrial shares in Canada

&

Camipbeau

Second Avenue.

Three With

&

Company,

**

■

lv';v '•*'

r

V*.

Exploration

Hayes, Wallace E. Macand
Dorothy M. Strock

Limited,'

have been added to the staff of R.

largest market for

Bay Mining

.

(Special to The Financial Chronicle)

on
sell

free

-

Alberta, Canada

Cable: STAMILCO

.

of

all issues listed will be sent
to you

•

:

connected
with Gerard R. Jobin Investments

Monthly Bulletin show¬

ing essential trading data

Building, Edmonton

(Special to The Financial Chronicle)

ing manufacturing industry

A

Bank

Telephone: 47276

ofmanufacturing companies.

and traded?

new

stalled

$44,000,000,000

shares listed




V''' \

Western Division: Mrs. Julia W.

larger number

of industrial shares than any

in Canada

?''■

.k

/

110

■

1

'

Report available on request

>

Goodbody Co.

(Special to The Financial-Chronicle)

CLEARWATER, Fla. —Douglas
Bark, Mrs. Elizabeth A. Gil¬
lespie and Richard D. Smith are
E.

now

DE PONTET & CO.,

associated with Goodbody &

INC.

jf

Member* New York Stock Exchange

Co., 407 South Garden Avenue.

at CtCotne and <J?tticad

"tVoa/i

Zahner Adds Three

40 WALL

*

STREET, NEW YORK 5

(Special to The Financial Chronicle)

Tel:

KANSAS

CITY, Mo.—Lester K.
Britt, Jack E. Buckner and James
M. McCarthy have joined the staff
of
,

Zahner

Building.

and

Company, Dwight

Dlgby 4-1640

7, Avenue George V, Paris, France
1,

rue

de la Cite, Geneva, Switzerland

Telex: NY 326

-

Palais St. James, Monte Carlo, Monaco
Hotel Carlton, Cannes, France

36

The Commercial and Financial Chronicle...

(1316)

Mr. Axe lists the combination of

Sees

'29-Style Crash Unlikely
Economist-President

Axe-Houghton
favorable

for

immeasurably

compares

today with that of pre-1929

era;

and

-

public speculation in
which

of

business

.such

we

a

Reaction

ERI
PROSPERITY

carried

from

Cash Divs.

are

stitutional

the

holders, he

now

says,

much larger percentage of
the industrial common stocks.
hold

mu¬

a

Funds Growing Investment

other institu¬

:.y;:

tional security
holders

are

of

our

m

Power

"The
mutual

investment
funds

the

of

power

aloneyis immense.

strongest bul¬

Early this year, the assets of 126

warks

open-end

against

it, in the opin¬
ion

they

to

came

of

Emer¬

W.

son

President

securities

of

fied

W.

"Although in¬
vestment companies were among
the

heavy

nomic

sufferers
of

fall-out
is

"there

every

the

of

1929," he says,
to believe

that managements of today's bal¬
anced-type funds would be able to

aninimize
duce

the

least

at

or

effects

of

that

may

•depression

greatly

business
conceivably

t>e ahead of us."
/ Mr.
Axe finds it highly im¬
probable that we will ever again

witness

the

combination

factors

of

that

.about the business and stock
ket decline of

tury ago.

quarter of

a

we

by

are

depression-proof.

sure

a

cen¬

depression
to be far less

no

means

"But," he
we

severe

says,

have

do

the

investment

trust

the 20's.
They
likely to sell in a panic
of

individuals."

In his comparison of the present
with that of the pre-

crash era,

Mr. Axe further notes:

Compares Present With
The

tion

absence

in

period
The

the

fact

the

is

that

many

much

better

they

are

The fact that

more

common

seasoned,
largely in

our

gold supply is

much larger than it was 30 years
ago and that partly because of this
and partly because of changes in

the

banking system the potential
supply is much greater.

credit

The

than the

in

banks.

stronger

position

of

■

the

-

-

spring of

then

and

first

then the break in the

in

tures;

0.80

6.80

11.8

0.85

2.3

0.80

16%

4.8

54

1.50

38

3.9

86

1.15

27%

4.2

1.40

27%

5.1

31

3.00

88%

3.4

18

1.55

18

0.80

10

8.0

/ 50

1.10

25

4.4

23

*

.

2.00

b43

4.7

21

0.10

'

v

Co.

office

furni¬

feeds,

cereals

and

deposits

and

Steel

sells

first

in

deben¬

mortgages

Automotive

Products

springs,

Co.,

bumpers

and

plastic products

Page-Hersey Tubes, Ltd
Industrial

political situation.
from
over-expansion

tubing

Dredging Ltd.

5.70

27.2

Operates

speculation in real estate.
Hoover

pipe and

Pato Consolidated Gold

Reaction

IU-Advised

3.5

supplies

Serious deterioration of the do¬
mestic

57%

0.02

Ltd. :_____

States.

2.00

18

Manu.

distributes

invests

Ontario

lending K,:./
practices of the banks in the Uni¬

5.1

19

producer

flour,

Accepts

the

491/2

11

Ontario Loan and Debenture
Co.

Reaction from unsound

ted

and

Mills

German elections of 1930.

2.50

producer

Ogilvie Flour Mills Co., Ltd..

litical situation in Germany, start¬

victory

zinc

Specialty
and

ture

Serious deterioration of the po¬

Hitler's

gold

Mfg.

few

3.3

gold producer

Ltd.

the

fO.4375 131/4

11

Office

months later.

with

1956

wire

Mines, Ltd.__
and

Quebec

German

a

1956 V

27

cloth,

Quebec copper and

banks and

pound

on

June 30

etc.

O'Brien Gold Mines, Ltd

-

the

central

currencies and

ing

mesh,
machinery,

Noranda

collapse

1931,

1956

30,

Co.,

Normetal Mining Corp., Ltd._

interna¬

financial

European

Weaving

wire

weaving

Europe and related influ-i

the

earlier

hands of long-term investors.

is

A

heavy specula¬
of

the

in

June

23

Makes

growing out of

ences.'

and

of

securities

are

of

Wire

Copper

decline

30,

signs

Ltd.

ing from this movement of gold

in

a
gold dredging project
Colombia, S. A.

Paton

Efforts

Mfg. Co., Ltd

Woolens

and

stocks

bad

out

1929

particularly of the
heavy speculation on thin margins.

mar¬

.

He admits

"any

un¬

brought

of fixed-income

situation

that

favorable

than

far less

than

re¬

any

a

very well diversi¬
stocks.
Their man¬

managements
are

eco¬

reason

and

common

A

Austrian

funds ; hold

proportion

enced

Mutual Funds.

Axe

situations

Pafa

27

advertising

Niagara

tional commodity markets result¬

country

agements are vastly more experi¬

Houghton
Emerson

this

than $8 billion—and

balanced

economist and

Axe-

in

still growing."

are

"The

Axe,

funds

more

good

the

nancial

Canada Ltd. i
Neou

fi¬

government

June

Paymts. to

—Canadian $ §—

World War I.

tual funds and

one

European

tion

Divs.

Draining of gold from European
resulting partly from
foreign trade policies of the Uni¬
ted States and partly from un¬
sound

12 Mos. to

Based

Neon Products of Western

countries

The mutual funds and other in¬

as

Black Death
and

and

Quota-

Years Cash

shortages.

20's

the

out

_

the

of

recurrence

closed

% Yield

Extras for

secutive

long period of

a

Appro*.

Including
No. Con-

high business activity based on re¬
placement
of
war - accumulated

ushered in the 30's."

prices

1929-32

in

had

as

as

remote

security

and

that

one

35

page

CANADIAN PROGRESS AND
QG

'

The chances of another collapse

from

St.v-

in history,

prices higher in relation to earn¬
ings and assets than ever before
or since..

experienced management than in 1920's.

more

*

Continued

responsible

collapse

stocks

common

of business and security prices is

highly improbable, and though we are not depression-free,
such phenomena will be far less severe. Reports 126 open-end
funds hold $8 billion assets, are still growing, and possess
vastly

factors

worst

A wave of

con¬

factors

1929-32 collapse

the

follows:

as

lists

responsible for 1929 crash;

situation

unfavorable
cludes

unfavorable

Thursday, September 27,1956

and

worsted

fabrics

Ill-advised efforts of the Hoover
Penmans

administration to prevent by arti¬
means a natural reaction in

Woolen,
goods

ficial

business activity and in
security markets in 1929-30,
delayed and prolonged the

Ltd.
cotton and

knitted

silk

general
the

Photo

Engravers

Photo

depression.

Electror

engravings, electrotypes,

commercial

the spring of 1931," Mr.
"American business had
experienced nearly as much re- '
action as could be expected wheft
the
serious
European
financial
collapse brought on a new wave
of liquidation; so that there were
actually two major declines, one
setting in immediately after the

&

typers Ltd.

which

photography, etc

"By

Pickle Crow Gold Mines Ltd.

Axe says,

other."

1.55

6.5

Ontario gold producer

Placer Development, Ltd
Investment—holding company—
,/

24

fl.16%

12%

9.2

gold interests

Powell River Co., Ltd.__

19

Largest producer of newsprint
the West CSast

1.85

54%

3.4

20

2.00

62%

3.2

on

-

Power

Corp. of Canada, Ltd..

A

utility holding management and
engineering company

A. B. A. Announces

♦

Quotations

price

Credit Conf. Dales

|

The dates for the Ninth Nation¬
al

Credit

Conference

Eleventh
Credit

National

Conference

can

Bankers

v/ill

be

early

held

in

and

represent

prior

June

30,

that

to

June

30,

date.

sale

1956

Bid

and

ask

b Bid.

Exchange

the

Ameri¬

Association, which
Chicago, Illinois,
have

.been

an¬

Morgan

by

the Credit Policy
of
the
Association,
Monday, Tuesday, and
Wednesday, Jan. 14, 15 and 16,

MEMBERS

&

,

Conference, sponsored by the In¬

Co.

Stock

Exchange

market

place since 1874

leading

exchanges for the trad¬
ing of mining, oil and
industrial securities.

porations.

A.

Credit \ Commission

Security Market Places

The 100 member firmi with 425 offices

throughout the world
and

assure

prompt

serve

the

execution

BOOKLET AND

MONTHLY




Private

Wire

to

Toronto

Morgan, Ostiguy & Hudon Ltd.

Fla.

—

Armistead

V

L.

Edenfield

&

Co.,

8340

With First Southern
MIAMI BEACH,
Fla. — Marjorie D. Cupp has joined the staff
of First Southern Corporation, 350
Lincoln Road.

,\

:

f

G.

Alison has become connected with

MONTREAL* QUE.

Jean P. Ostiguy

Members: Investment Dealers' Association of
Canada

(Special to The Financial Chronicle)

453 ST. FRANCOIS XAVIER ST.

Guy Hudon

>

With Frank Edenfield

Frank

REVIEW

David Clark

MIAMI, Fla.—Evelyn C. Cumming has joined the staff of Grif¬
fin
McCarthy,
8340
Northeast

Northeast Second Avenue.

FREE

Tel. Riverside 8-7391

Col. W. E. Morgan, O.B.E., M.C.

Direct

(Special to The Financial Chronicle).

(Special to The Financial Chronicle)

of orders.

Bldg,

Cote de Liesse Rd„

MONTREAL, CANADA

Joins Griffin McCarthy

MIAMI,

investor

940

of

B.

Second Avenue.

-Canada's

Standard Electric

Tel. PLateau 3971

stalment

A., is being planned
Monday, Tuesday and Wed¬
nesday, March 18, 19 and 20, 1957.

for the shares of
major
Canadian and U. S. cor¬

Aldred Bldg. /

507 Place d'Armes

for

One of Canada's

s

Credit

The National Instalment

the

Canada*! "industrial"

Montreal

Canadian Stock Exchange

will occupy

1957.

Exchange

of

Instalment

of

Commission

Stock

sale

as

-

The National Credit Conference,

Canadian

last

are

the

The Conrad Hilton.

Stock

the

in

1957,

sponsored

or

quotations

§ Add current Canadian Exchange Rate,
t Adjusted for stock
dividends, splits, distributions, etc.

nounced by the Association. Both
of the conferences will be held at

Montreal

prices

1956.

507 Place d'Armes

Telephone PLateau 8623

MONTREAL, CANADA

f

Volume 184 * Number 5572

NY Muni. Bond Women

CANADIAN PROGRESS AND

Elect New Officers

Cash Divs.

Miss

Approx.

Including

% Yield

No. Consecutive

Quota-

Paymts. to

12 Mos.to

Years Cash

June

June

30,

1956

12

17

Premier Trust Co.__—_—__
etc.

•

■

• ■

gold producer

Brothers &

Price

of

13

2.75

67

,

1.10

13 %

8.1

-

1.20

27*4

Estelle

Wide

of

range

&

world

the

Oil

the

Interests

£

a

■

1.9

motors,

11%

7.0

Offers

/

_

/

-y . V.

23

20

0.55

'Steel

bridges

bll

5.0

v

First Boston

sociates
fered

production

Scarfe

14

0.80

10

21

"B"-_

1.00

al5%

7.8

cotton,

waste,

180,000 for the payment of out¬
standing debt and the remainder
for other corporate purposes, in¬

wool

and

wipers, etc.

1.75

50

-

electric

Quebec

821/4

developments

2.1

Ltd.

Paints,

Breweries

Sicks'

ale,

Beer,

2.05

15
enamels,

varnishes,

stout

5.1

40

1.40

29

carbonated

the period

beverages

The

Sigma Mines (Quebec) Ltdgold

Quebec

Silverwood
Full

♦

Dairies, Ltd. "B"

5 Add

represent

prior to
1956,

June

that

June

12

0.60

19

30,

date.

5.0

sale

1956

Bid

prices

ask

and

or

the

quotations

last

are

sale

as

of

30,

current Canadian Exchange Rate.

t Inactive issue,

no

transportation fa¬

debentures are entitled

page

38

Montreal

.

Stock

Exchange

Canadian

Stock

Exchange

commercial

d'Armes,

Place

507

Montreal

1

St. Peter Street, Quebec

72

in

proaucer

;
.a:

_

..

Exchange

Stock

Toronto

150,000 or 94.7% of the issue by
Oct. 1, 1975.
v;
,
Peabody Coal Co. is the second

sell¬

primarily to electric utilities
Midwest area, largely un¬

ing

Asxed.

on

Members

sinking

a

the bituminous coal in'dustry,

Continued

Geoffrion, Robert & Gelinas

1956-59.

new

largest

Exchange trading,

b Bid.
a

Association of Canada

the

additions,

fund sufficient to
retire $1,950,000 principal amount
annually commencing Oct. 1,1959,
which is calculated to retire $33,to

products

dairy

Quotations
pnee

8.2

4.85

producer

of

linj

0.40

17

«„•

cilities, all of which are expected
to cost about $38,600,000
during

5.3

261/2

and

sion of related

etc.

Ltd.
and

Members
The Investment Dealers'

acquisition of additional coal re¬
serves, the development of new
mines and the purchase or exten¬

utility

Sherwin-Williams Co. of Can¬

ada,

GeofFrion, Robert & Gelinas, Inc.

cluding expenditures for property

Shawinigan Water and Power
Co.

Co.

Coal

expects to use approximately $28,-

—

cotton

Manufactures

to

Corp. and as¬

fund debentures, due

•

Scythes & Co. Ltd

I•

5x/4% sinking
Oct. 1, 1976,
at 100% of principal amount.
Of the proceeds from the sale
of these debentures, Peabody Coal

5.2

Mfrs. land; sells varnishes, paints,
etc.

West, Montreal

Harbour 6101

yesterday (Sept. 26) of¬
the public $35,000,000 of

Peabody

0.40

151/2

•

Co. Ltd.

&

///

j'

i-

related

and

Peabody Goal

| Go. 5%% Debentures

3.4

0.85

0.03

switches,

■

★

233 Notre Dame Street

'

etc.

★

★

First Boston Group

0.80

tool

Sarnia Bridge Co., Ltd—

/;

and Miss

14

The
meters,

Electric

.

President,

retiring

t

The Toronto Stock Exchange

* '.J

-

Exchange

Canadian Stock Exchange

Continuing
Schreiber,

21

Sangamo Co., Ltd-—

.

years.

0.26

Manitoba- gold producer'

f

two

28

San Antonio Gold Mines Ltd.

'

Montreal Stock

v

production and-development

Holding company—machine

King

Co., Inc., 24 Julia Street.

of

Mary Ciarlo. of The Bond Buyer.

Russell Industries Ltd—
i

1.92H

,:

Royalite Oil Co.,*Ltd.____,.

Vance

Oswald & Drinkwater

See Blrik'i advertisement on page SI.

•

J.

with

Mrs.

Co., and Miss
Braun, Boselected mem¬

Governors will bo Miss

3*2

branches throughout

Operates 79C

Co., were

for

serve

88

ROYAL BANK OF CANADA

Merritt &

Charles

affiliated

bers of the Board of Governors to

3.1

12%

bolts

and

screws

0.40

15

and

now

Bank,

Hanvey,

of

Hoskins,

Madlyn

Manufac¬

L.)

(P.

are

Members

M.

Wood, Struthers &

4.4

.

turing Co., Ltd—-

Boulevard.

elected Secretary.

42

utility

Jr.

Dolan, of J. J. Kenny Co., was

worth

Robertson

Manhattan

Vice-President;

Pollock, of the Harris
Savings
Bank,; was
Treasurer, and Miss Marie

Miss

Quebec Power Co._
Operating public

G.

-

t

Sunrise

and

elected

Quebec

in

lines

coach

Ontario

and

Co—

East

McCaul

L.

C.

Trust

4.1

20

Co., Ltd.

elected

Betty

Newsprint and related products

Operates

Chase

The

was

1.3

6.40

J-/

•/

Provincial Transport

R.-fW.

'

Preston E. Dome Mines Ltd—
Ontario

of

'■

Miss Anna F. Schreiber,
Mitchell, Pershing, Shetterly &
Mitchell.k Miss Justina V. Taylor,

Operates, as trust company
trustee,

Brehm

(Special to The Financial Chronicle)

JACKSONVILLE, Fla. —Leroy

of

4.9

b82

0.08

■

Two With King Merritt

LAUDERDALE,
Fla.—
Charles N. Sacher has joined the
staff of Fahnestock & Co.,
1750

ceeding

—Canadian $ §—

4.00

Emma

37

Women's Club of New York, suc¬

June 30

30,

1956<»

1956

Joins Fahnestock Staff

FT.

Pressprich & Co. has been elected
President of The Municipal Bond

Based on

tion

Extras for

'VDivs. Paid

-

(Special to The Financial Chronicle)

PROSPERITY

-

•

(1317)

The Commercial and Financial Chronicle

;..

York City— Toronto

Private wires to New

—

Quebec City.

the

in

it der long-term contracts.

Its min¬

operations involve both un¬
d and strip mining
methods, with mines in six states
for the most part accessible to the

ing

der g r o u n

Savard
Members

Hart

&

inc.

Mississippi, Ohio, Green and Illi¬
nois

Rivers.

For

of The Investment Dealers'

•

—

—

months ended

the first six

June 30,

Association of Canada

;J

net income to
$3,024,375 compared with sales of
$41,081,992 and income of $1,942,to

.

$48,957,865 and

Notre

Dame

1955, sales amounted
$87,929,988
and
income
to

the full year

St. W.

to

1203

Phillips Square

-

50 Jean Talon West

Our facilities

For

946 for the same half of 1955.

230

OPPORTUNITIES IN CANADA

1956, net sales amounted

in

investors

$6,9Q9,922.

MONTREAL

can

be of valuable assistance to those

industrial development of

the

selecting suitable investments

in

—

TROIS-RIVIERES

—

Bache Adds to Staff
QUEBEC

—

'

is

now

connected

with

Bache

&

Co., 96 Northeast Second Avenue.

Nesbitt, Thomson and Company
!

Limited

=,

Members

With Columbia Sees.

Savard & Hart

of The Investment Dealers'

Head Office:

Association of Canada

355 St James Street W.,

Montreal

(Special to The Financial Chronicle)

Fla.—Robert

MIAMI,

Members: Montreal Slock Exchange

.

"

(Special to The Financial Chronicle)

SOREL

MIAMI, Fla.—John T. Canfield

,

"

''

through which to

growth.

participate in Canada's assured
■r

SHERBROOKE

interested

Canada and of benefit to

R.

Branches in the

Siska

principal Cities of Canada

.

has been? added to the staff of Co¬
*

-

,

_

Canadian Stock Exchange

lumbia
of

Toronto Stock Exchange

'

Securities

vard.

Head Office: 230 Notre Dame St.

Inc.

Company,

Florida, 3839 Biscayne Boule¬

Nesbitt, Thomson and Company,

■

W., Montreal

1

25

B. C. Morton Adds
*

Branch

(Speeial to The Financial Chronicle)

Offices:

MIAMI

40 Exchange Place
11

—

65 West 44th St., New York City

Morton

Street,

140

—

TROIS-RIVIERES

ST.

JOHNS,

P.

Q.

—
—

THETFORD MINES




SHERBROOKE

—

CHICOUTIMI

DRUMMONDVILLE
—

MIAMI BEACH

Inc.

N. Y.

Teletype NY 1-4358

Federal Street, Boston 10,

Mass.

staff

& Co.
Direct

QUEBEC

New York 4,

Telephone HAnover 2-8875

Fla. —Henry

Nelson has been added to the
of B. C.

King Street West, Toronto

BEACH,

Broad

Joins A. M. Kidder Staff
(Special to The Financial Chronicle)

SARASOTA, Fla.

—

Harry Ben-

trup is now with A. M. Kidder &

Co., 16 South Palm Avenue.

New

York,

Boston,

Kitchener, London

iuire

connections

Montreal,

between

Toronto,

Ottawa,

(Ont.), Winnipeg, Calgary

Hamilton,

and Vancouver

3
'Mt

38

The Commercial and Financial Chronicle

(1318)

thereafter

$75,688,600 Issue of
Commercial Credit Co.

the

41/4% Notes Offered
banking

apu

of

headed jointly by The First Bos¬

business

purposes.
and after

indebtedness

PROSPERITY

en-;

scale in the

has

180,000;
Net

V.

companies,

surplus

$13,120,000

was

for

ti

with

$12,873,000 for the
period. .*

able

June 30

for

power

Smith

on

the

Toronto Stock

12

and

manufactures

paper

in

Southam

radio

e

21

dai.y

seven

Canada;

M 1.80

47%

3.8

34

Co., Ltd

Publishes
across

2.00

51%

3:9

newspapers

operates

three

stations

Southern Canada Power Co.,
Ltd.

compar¬

—:

:

Operating public
Quebec

—

utility;

South¬

of
r

TORONTO

STOCK

EXCHANGE

25 ADELAIDE Wv TORONTO

.

TEL EMPIRE 3-9171

,1,

NORTH BAY >

of

ST. CATHARINES

the

'

by

LOO

b23

4.3

41

1.60

63%

2.5

20

small

1.80

47

3.8

17

1.05

14%

7.2

wares

all, branches of steel
-

General

fiduciary

business

and

extreme

related

friction

lubricants

products

\f

;

Ltd. "Vot. Com."
Markets

petroleum

•

Ontario

and

31
products

Quebec

~

,

0.80

b26

3.1

in
^ '*

Sylvanite Gold Mines, Ltd...

27

0.08

1.23

65

Tamblyn (G.) Ltd......20

1.80

41%"

4.3

10

0.50

10

5.0

31

0.10

28

0.24

22

0.15

,

been

will

22

Ltd.

retail

Supertest Petroleum Corp.,

Ontario

gold

producer

Operates chain of 103

signed and
remodeling
work

2.0

J

Engaged in
production

Makes
'

leases

have

LONDON

b37

Stuart (D. A.) Oil Co., Ltd...

firm.

The

PORT C0LB0RNE

1.75

Sterling Trusts Corp

City,

Winthrop H.
Smith, man¬
aging partner

WINDSOR

and

38

-

Steel Co. of Canada, Ltd
;

Rockefeller Center office, in the
of New

announced

SUDBURY

£

Insurance

Brothers

Wholesale

early next
year,
it was

MEMBER
THE

A-'-Z

and' endowment

'business '

Lynch, Pierce, Fenner
and Beane, members of the New
York Stock Exchange, will open
heart

raper

Canada

Life

Stedman

; Merrill Lynch Firm

& COMPANY LTD.

,

Sovereign Life Assurance Co.

•

Dobie

44%V% 2.8 :

1.25
*

>"

Canada

1955

York

3.8

y;

:

—

Pulp

.

a

17%

(Howard)-Paper Mills; *

-'Ltd.

New Branches For ,3

Exchange

:

2.6

—

■

Merrill

Listed

1956

y

ern

Warrants and Rights

15E6*

Id

0.65

hardware

,^comp?nies;. also metal stampings
and forgings -y t yy> >

first six months of 1956 compared
on

June 30,

June 30,
1956

(N.) Co., Ltd.—"19

Slater

earned

to

P^yrrts. to

s Ltd.
.11
and operates through subs,
stores in Canada
"
-

Owns

•Pole-line

$57,036,000.

credited

tion

b.OO

dept.

insurance prer
reinsurance, $17,net sales of manu¬

income

12Mos.to

Simpson

gross

and

facturing

-

Based on

-—Canadian $ §—

gross

683,551,000;

Approx.
% Yield
Quota-

Divs. Paid

1956 the company reported
receivables acquired of $1,-

30,

totals

$105,000,000 comprising unsecured
potes due 1957 to 1969.
Capital

"

Extras for

Years Cash

For the six months ended June

Sub-

* ' *

secutive

V

i

'

Including

group

a

„A-

:

No. Con-

miums prior to

Particulars Available

.

Cash Divs.

obligations

United States and Canada. V'

ordinated

V

CANADIAN PROGRESS M

of subsidiaries comprising insurance
companies 'and y manufacturing
companies. The business is trans¬
acted almost entirely within the*

due within one year
$315,000,000 with maturities

running from 1961 to 1976.

37

page

of| acquiring instalment

also

pany

$718,495,500
and

from

and accounts receivable. The com¬

Co.

which constitute
a
part of the
superior indebtedness of the com¬
pany, are priced at 98.45% and
accrued interest, to. yield 4.375%
to maturity.
They are non-call¬
able for the first 10 years and

in

on' as national

and deferred payment

As of ^Tune^O, 1956
Corp. and Kidder, Peabody &
yesterday (Sept. 26) offered giving effect to this financing, the
for public sale a new issue of superior indebtedness of the com¬
$75,000,000 Commercial Credit Co. pany will amount to $1,033,495,500
4%% notes due 1974. The notes, of unsecured notes consisting of
ton

the United States

prises

additional in¬
vestments in subsidiary companies

foVvother corporate

Continued

par

its finance
subsidiaries
constitute
the three largest enter¬

gaged

reduction of short-term loans,

and

$10

and

company

of

one

receivables,, for

for advances to and

group

The

'

will be available

puu^hase

of

outstanding,

value, amounts to o,026,181 shares.

of the sale^yill be
to ttfe company's working

capital
the

investment

stock

redeemable at par.

The proceeds

added

An

are

Thursday, September 27,1956

...

drug stores

Taylor, Pearson and
•'
»(Canada) Ltd.

be

y

.

Carson

-

started
for

Holding co.—interests in autcmo-

soon

the

tive

office

Wilbert

Lynch

Teck-Hughes

Teepe

which

Ontario

be

the

firm's

sixth

Exchange

business,

Affiliated with

1940.

At

HARRISON & COMPANY

Lynch.

new

the

complete investment seryices
by the firm including an
quote

board

wilUbe

listed

quotations

proximately r 350

upon

on

Mr.

TORONTO, ONTARK

EMpire 8-1891

staff

a

of

open

10

office

in

the

on

page

Ltd.....^

5.6,.

28.

18

0.30

20

4.0

11

1.00

22%

4.4

Grain elevators, feed manufacturing and vegetable oils

Toronto Iron Works, Ltd
■■

1.59

;

Eng.""

advertisement

Elevators,

~Steel-plate
metals

products

and

special

;

:

General fiduciary business

Mortgage

Lends*

on

debentures

♦

first
and

Quotations
price
June

accepts

renresent

prior
30,

to

-

Co....

mortgage;

that

1.40

73

•

i 57

issues

3.8

>37

/

5.00

112%

4.5

*

deposits
June

30,

date.

1956.

1956

Bid
.

sala

and

ask

pric°s or the last sale
quotations are as of

'*

'

S Add current Canadian Exchange Rate.

ington, D. C., Sept. 25, under the
managership of S.Harold Williams.
new

1.4

and

/

and

bl0%

in

448

York

Toronto General Trusts Corp/

experienced account executives..
Merrill Lynch also opened its
second full-scale office in Wash¬

The

New

ap¬

the office

trained

4.6

•

clothing

branches,
in

London,

Toronto

Teepe will

witn

i—-

and

securities

/

in

one

See Bank's

Toronto

which

commodities.

66 KING STREET WEST,

•

offered

The Investment Dealers' Association
of Canada

of fine

460

Canada,
one

office will have

electric

5%

In¬

manage¬

99

."^Operates

-v

Members

the

575

Avenue office of Merrill

The

of

BANK
r

the

4.9

TORONTO-DOMINION

Merrill'Lynch si
in

2.03

type

Manufacturer

-

executive

Madison

LIMITED-

started" in

General

trust

Tip Top Tailors, Ltd

present Mr. Teepe is an

account

Mines,

producer

Canadian

ment

having

and been with

gold

Investment

The new office will be
managed
by Wilbert H. Teepe who has
spent his entire business.career in
the
brokerage
and
investment

Members

Gold

vestment Trust Ltd

office

in Manhattan.

LIMITED

The Toronto Stock

Third

Company Building in the Center.
will

appliances

Ltd.

will be located in the U. S. Rubber

It

household

new

Merrill

MASTERS SMITH & PARTNERS

and

b Bid.

nation's

capital brings to 117 offices that
Merrill
Lynch * operates
in
the

Industrial, Mining and Oil Securities

United

States

tries.;^

and

foreign

coun¬

':

>>:>:'

w/-'

With

Draper, Sears

(Special to The Financial Chronicle)

*-

■

Cochran, Murratj C

5" "

POMPANO BEACH, Fla.—Ger¬
ald J. Hayes is now affiliated with

Co.

Limited-

Draper, Sears & Co. of Boston.
Mr. Hayes was formerly in the

Member

investment business in Boston for

•

Investment Dealers' Association of Canada

many years.

>.

,

Toronto Stock

ST.

Exchange

E.

Bieder

Howe

tral

,

has

and

joined

the

staff

■I

of

Company, 3006 Cen¬

Kirkland Lake
Val d'Or

Timmins

Malartic

.t

Hamilton
(Special to The Financial Chronicle)

Noranda




-

Exchange

Dominion Bank Bldg^ Toronto, Telephone Em. 3-9161.

Curtis Merkel Adds
Rouyn

Chiboug amau
Private wires
connecting Branch Offices, New York and all other
leading Exchanges

Member of the

Toronto Stock

'V

Avenue.

King Street West, Toronto—EMpire 6-9971
Offices:

Hamilton

to Staff

PETERSBURG, Fla.—Mary

Calgary Stock Exchange

Winnipeg Grain Exchange

Canadian Stock Exchange

11

Bieder Aids

(Special to The Financial Chronicle)

Members:

ST.

PETERSBURG, Fla. —Mrs.

Louise M.

^ ■

Santos has been added

V

to the staff of Curtis Merkel Com¬

pany,
North.

Inc.,

601

First

Kitchener

*&-•

Avenue,
•

■'
v.,

London

V'

■

Volume 184

Number 5572

39

(1319)

The Commercial and Financial Chronicle

...

to cost not less than

PROSPERITY
Cash Divs.

Quota-

Approx.
% Yie'd
Based on

tion

Paymts. to

June 30,

June 30

Including
No. Con-

Extras for

secutive

12 Mos.to

Years Cash

Divs. Paid
i <

Traders
v

Finance

June 30,
1956
—

sales

installment

Canadian $ §—

42

2.40

10

«b"
Furcheses

1956

' 1956*

through 1967

Operates 34
tres

bec

,

other

and

32

co.

investment

An

trust

ftgement ty>e'-

of

St^el
plate
products

21;;

16

0.75

22y4

the

3.4

Donald L.

17

•'.• •'

•;

-V

3.00

-V

Wabasso Cotton Co.,
Cotton

and

yarns

•

21

Waite Amulet Mines, Ltd.—_i
Quebec

(Third Edition) —
Lawrence
L.
Bethel, Franklin
S. Atwater, George H. E. Smith,
and Harvey A. Stockman, Jr.—agement

1.40

16%

0.50

17

Ltd

3.0

.

•

14%

9.7

4.00 f :

^21

5.8

69

liquor

Ltd..

Products
sheet

Manufactures

Street, New York

Pfeffer—Richard D.
win,
Inc., Homewood,
(cloth), $4.00.
Irving

1.20

16

>

•

191/4

6.2

Canada

and
',?

-

western

four

Serves

Westminster

.

products

Weston
Fine

♦

0.80

24

•

b25

,3.2

bread,

"B"~;

cakes,

fO.25?

27

23%

1.1

5 Add

30,

1956.

t Adjusted. for stoc:c dividends,

bBid.

//x,//:'.•?

.

Continued

on

40

>•*71/'

\

Pay
Com¬

—

Co.

i //:

LIMITED

Exchange
on

all Exchanges

354 Talbot Street

Securities & Co., N. Y. C.

Eastman Dillon, Union

MacDougall & MacDougall, Montreal

Underwriters and Distributors
Government of Canada Bonds

Provincial and Municipal

?

Debentures

Treasury Bills

Corporate Bonds and Shares

Prices1 quoted

—

D. C," (cloth), $3.75.

gineering Personnel

v

Toronto Stock Exchanger" V- v
Investment Dealers' Association of Canada

v" „/,:'

in

Canada,

or

;

in Canadian Funds for delivery
U. S. Funds for delivery in the
United States.

ir

'
'-yj

y

^

,

i

STOCK ORDERS EXECUTED ON ALL EXCHANGES
f
.

44 KING

STREET WEST,

D.

and: Robert

30 Pine Street, New

'

•/.

Industrial s Relations.

^

.

TORONTO, CANADA

Employment

in

Trends

in

the

'fv:. •./

•;

t"

York

r1

it

; v

Equitable Securities Canada
. :/',/■
-/.• */'■•
Healers* Association of Canada

Members: The Investment

TORONTO, CANADA

220 BAY-STREET—

Industries — George J.
Princeton University
Press, Princeton, N. J. (cloth),
$3.75.
/
O-.f,-1 /-"'
Stigler

:'c \ ■£

^//•/:;//^':vLIMITED

^ Service

Telephones EMpire 4-1131

private wire with Goldman, Sachs & Co.

Direct

John T.

—

Gray—
Section,
•California
Institute
of
Tech-;
nology, Pasadena, Calif, (paper).,
$8.75 (quantity prices on * r,equest). :
//.'•/• '-V
Lloyd

.

'

;

1

^Supervision of Scientific and En*

•::Members:

The

.

United

S) 'Department

1956—U.

Commerce

ton 25,

"

-

r *

Wires to

Private

'

vyY

Abstract of the

Superintendent
U. S. Government Printing Office, Washing¬

v

&

/

,;.

f,

215 St. James Street West

Montreal, Quebec:

'

of" Documents,

Walwyn, Fisher

-

50 King Street West

St. Thomas, Ontario:

./'.v.-:;:

v:

States
of

;

*u*

•

330 West

Inc.,

Company,

Statistical

—TT-

1

,

Huron & Erie Building
Sault Ste. Marie, Ontario: 116 March Street

Business—Tech¬

for

-b $1.00. 'f"..;".'

.

1

London, Ontario:

Company,

page

The Toronto Stock

Toronto, Ontario:

Eddy-Rucker-Nickels
Harvard Square,
'Cambridge 38, Mass. (paper),

/.//

V,.::

.

Street, New York 36, N. Y.,

bined

splits, distributions, etc.

■./

Corporation Securities
T_; *
*
v/ 'J.

I-

Telephone: EMpire 6-1141

—

Branch Office:

St. James St., West, Montreal

437

Two Directions at Once—Leonard

Foundation

Read—The

E.

>

for

Economic

Education, Irvingtonon-Hudson, N. Y. - (paper).

United

COMPANY

(r

Greeting

Nations

United

for

Proceeds

MATTHEWS

Cards—
Nations

R. A. Daly & Company
■

.

//Children's Fund—$1.00 per box
'

■V.;//

—UNICEF Greeting Card Fund,

LIMITED
...

'

•

.

a

/

.

.

|

'

1

'

I

''

i

'

Limited
./

United Nations, New York.

Established 1909

Members

/

The Investment Dealers

Association of Canada

The Toronto Stock

C

Exchange

With King Merritt Co.
(Special to The Financial Chronicle)

:

BOSTON,

Members:

v;

Mass.

underwriters

Raymond L.

—

Epstein is now with King Merritt
.

-

;

.

Toronto Stock Exchange

&

Company,

Inc.

.

canadian

in

•

and

and

dealers

municipal

government,

corporation

securities

Investment Dealers' Association of Canada

Paine, Webber Adds

Private wires to Montreal, Orillia
r-:

•

(Special to The Financial Chronicle)

220

Toronto, Ontario

Bay Street

Direct
30

Private

Wire

EMpire 4-5191

to

Principal Cities in the

United




States of America

BOSTON,

Mass.

—

Edgar

York

and

Boston

Mr.

D'Abre

44

KING

previ¬

ously with Merrill Lynch, Pierce,
Fenner & Beane.

(

and New York

'

on

s

\

'

all Exchanges

STREET

414

WEST

EMpire

JAMES

ST. WEST

MArquette 8038

4-4441

private

ST.

MONTREAL

TORONTO

Stock Ex¬
was

;

R.

Direct

changes.

-

Orders executed

D'Abre is now associated with
Paine, Webber, Jackson & Curtis,
24 Federal Street, members of the
New

5'

"

111.

issues—
on File,

—All U. S. Manufacturing

current Canadian Exchange Rate,

Municipal

Ir¬

Progress in Productivity and

<

-

political

on

Sobel—Facts

$15.00.

Quotations represent June 30, 1956 sale prices or the last sale
price prior to
ihat date. Bid and ask quotations are
as
of
June

A.

Money

42nd

•1;;

Stock orders executed

York, N. Y., $3.50.

Book

con-

etc.

•

member:

n

niques of Long-term Corporate
Financing — George J. Leness,
Gillette K. Martin, and Robert
T.
Gilmartin — McGraw-Hill

-

(George) Ltd.
biscuits,

fectionery,

New

specialty

paper

■•/

,

Lester
New

-

of

3.7

Ltd.

Paper Co.,

range

30

provinces

"B"
Wide

formation

-

1.10

20

The Investment Dealers' Association of Canada

The Midland Company

metal

Breweries,

corpn. limited

J'

National Issues—Handbook of in-

Western

''"h

Inc.

Canadian Government,

Insurance and Economic Theory—

interests

Westeel

Company,

36, N. Y., $6.75.

Worts, Lid

Holding company—extensive

Book

330 West 42nd

Walker (Hiram)-Gooderham
&

West Florida Securities Company,

—

McGraw-Hill

producer

copper-zinc

With West Fla. Sees.
J. Woodard is now connected with

members:

Industrial Organization and Man¬

goods

"

;

B.

Gordon

—

4.7

b64

v':**

;•

Co.

TALLAHASSEEf Fla.-^Herbert

...

Midland Securities

Leitch, M. D.—The Foundation
for Economic Education, Irvington-on-Hudson, N. Y., paper.

<'

•

-1

Water

5.4

0.92

0.05

the
au¬

Commission,

1-

:

s:

6.5

producer

Biscuits and confectionery
-

15%

Fluoridated

;.lT 10

gold

Ltd.
1-' '•

/' 1.00

;
,

.

Upper Canada Mines Ltd.—.
Ontario

N. Y., $6.00.

11
steel

'

Book

West 42nd

Ltd
u

of

and

The issue is to be secured by
the following equipment estimated

Company,' Inc., 330
Street, New York 36,

&

Kemmerer—McGraw

Hill

man-

welded

'/

,

Economic Develop¬
ment—Ralph H. Blodgett and

3.3:

sale

subject to the

are

Hutchinson

x

Comparative

1

and

..

0.70

'.i

United Steel Corp.,

Viau

merce

11,

York

New

N. Y., $6.00.

interests

insurance

—

JJmted Corporations Ltd. "B"
s

Fifth' Avenue,

/,

United Canadian Shares Ltd.

Co.; Freeman & Co.; Gregory &
Sons; The Illinois Co., Inc.; Wm.
E. Pollock & Co., Inc.; Shearson,
Hammill
& "Co.;
and McMaster

thorization of the Interstate Com¬

*•/

cities

Holding

6.3:1

Que¬

in the offering are:
Merle-Smith; R. W. Pressprich & Co.; Baxter, Williams &

Dick &

priced to yield

are

Issuance

certificates

Securities—Douglas A. Hayes—
The
Macmillan
Company,
60

thea¬

picture

motion

Montreal

in

a

o.5o

3.70%.

of

Management

and

Appraisal

ligations

32

Associates

Stuart

Certificates maturing from 1957

5.7.

ob-

United Amusement Corp.,
Ltd. "A"

electric locomotives.

& Co. Inc. and
associates on Sept. 25 offered $3,600,000 of Virginian Ry. Co. series
E 3%%
equipment trust certifi¬
cates, maturing annually Oct. 1,
1957 to 1971, inclusive.
Halsey,

Ltd.

Corp.,

$4,500,000: 8
diesel-electric road*switching lo¬
comotives/and 12 rectifier, type

Halsey, Stuart Group
Offers Equip. Tr.CKs.

CANADIAN PROGRESS AND

wire to Oppenheimer, Vanden Broeck & Co.,
120

Broadway, New

York

40

(1320)

The Commercial and Financial Chronicle

maximized,

instead

by. taxation,
avoidable

Securities Salesman's Corner
1

/'

erosion

losses

normal

outside

these

The

Gains

Capital

Tax

business

is

changing rapidly from what it

was

lower

income

taxes

vailed. No longer is it

In

tal

pre¬

short-term

on

dividual

and

for

compensated

in

is

be

risks

the

"switches"

in¬

still

moves

securities

to

punitive income

than

more

a

average

tunity for

betterment

count

in¬

so

by

volved.

elaboration

are

Investors

must

now

income.

and

a

need

it

for

based

changed status of

curity,

or

of

and

The Inheritance Tax

,

Informed

investors,

they

as

who

see

from

se¬

unit,

for

also

are

well

aware

or

known

recognized.

as

a

from

time

to

time

so

that

their

of

in

light

the

will

If

"trade"

it

Ltd.

1956#

on

1956

26

0.12

16

1.02V2 25

1.76

6.3

Ontario gold producer

Zeller's Ltd.

4.1

Operates chain of specialty stores
Canada

across

TABLE II

and

come

CANADIAN

go.

patience
they enjoy
skill

more

and

take

but

Common Stocks

will

orders

from

them

initiate

never

be

LISTED

will

relationship
wherein you are the advisor and
they the investor. You will never
these

rare

liking
or

CO. LTD

&

June 30

Wright-Hargreaves Mines,

long
profits

you

the

BROS.

June 30,

June 30,
1956

more

because

with

(some

control

McCUAIG

Paymts. to

—Canadian $ §—

as

good

knowledge than others)

ultimate

efforts

tion

Based

business

some

person

They will
they have

(B)

of

do

to

making

and

that

plans must be made (and changed

conditions)

12 Mos. to

Divs. Paid

your suggestions. They are
market, > fair
weather

fc

clients."

family

Quota-

Years Cash

sell

and

% Yield

Extras for

secutive

obtaining quick

type of

are

"bull

their

buy

Approx.

^

Including
No. Con-

are

your

who

able

this

relationship

growth,
well

be

with
.

to

which

facts, and also act impul¬
sively. They want action and you

j will

rewards

are

PROSPERITY
of

aware

with

their estate from the aspect of its

particular

yield,

both. These facts

ac¬

'

Those

the

upon

opportunity

an

betterment

a

.

"Switches"

should be made only when there
is

on

the

buy value and

retain commitments for long-term

growth

CANADIAN PROGRESS AND

profits are in one or the other of
two
categories
psychologically.
(A)
They are either impatient

oppor¬

in

39

nage

Cash Ditfs.
are

termites

for the purpose of

doing. Fur the r
this point is un¬

necessary.

More
and -more
people
becoming educated to this fact.

(1)

and
making
wherein there

except

September 27,1953

is subjected.

best accounts.
There
are
several
reasons
why
this is so, as follows:

(maximum) capi¬
is also a deterrent

gains tax
profit
taking

to

possible for

investors to place primary impor¬
tance

addition

taxes, the 25%

three

potentially

are

when

from

constantly gnawing away at their
capital — income taxes, capital
gains taxes, and inheritance taxes,

Security Salesmanship

investment

the

People Who Have Awareness

Analytical, Advisory Method

(ARTICLE I)
The

of

to. which every in¬

vestment account

The investors who

Of

Continued

costs,

"

By JOHN DUTTON

The

dissipated
aid

of

probate

i. Thursday,

.

accounts
where

case

exists

you

a

that

in

except

is very

excep¬

(2)

M'":®

strong,

Have Been Paid From

tional service necessitated by their
excessive demands.

Estahlinhcd 1898

CASH

DIVIDENDS

personal

a

through with

come

On Which

CONSECUTIVE

People

who

have

5

aware¬

10 Years

to

of their tax problems are also
the larger account class. Their

ness

in

MEMBERS

business
The Montreal Stock

tain

a
Cash Divs.

The Investment Dealers' Association of Canada

work

you

place

MONTREAL, CANADA

with accounts that

orders

for

(3)

Th^se

are

Abitibi

can

Newsprint

intelligent

deal

plan

a

Refines

approach

vestments,
they are more
likely to be people who are

Limited

advisor

MONTREAL STOCK

who

fidence

""

MEMBERS'

and

know

EXCHANGE

the
CANADIAN

STOCK

INVESTMENT DEALERS

/■

EXCHANGE

ASSOCIATION

OF

■

STREET

*

well

This

/

It

is

;

securities

be

to
the

salesmen

those

are

now

working in this lucrative area are
finding
it
the
most
gratifying
work
they
have
ever
accom¬
plished.
'/..
//y:,
.

.

1

It

,.-n

KIN

(Next week

ER,WATSON

to

Stock

1G

ST.

Association oj

Members:

Dealers

Investment

Cana

WEST

BAY

STREET

son

TORONTO
EM pire

4-9271

H)

42

3.6

15%

4.0

9

/ 0.475

9

0.75

0.3125

7

1.00

31

3.2

8

0.40

1314

3.0

...;7

0.75

22

3.4

Vickers, Ltd.7

1.50

34%.

4.3

/

largest producers
products in Canada

of

in

gold

a

dredging

14.3

5.25

project

New Guinea

Ontario

Mines

Lake

Red

Canada Cement Co., Ltd.__
Portland

Oldest

/

cement

Canada Foils,
plant

5.3

5.90

gold producer

and

Ltd.

largest foil converting

Canadian Dredge & Dock Co.,
Ltd.
;

General

/

repair work

construction &

dredging;

Canadian

industrial

waterways

on

Shipbuilding,

repairs;

and

Delnite Mines
Ontario

"

Canada

in

also

Ltd.

makes

machinery

mining

8

\

/ 0.04

0.72

-

5.5

gold producer

Dominion

Scottish

Invest¬

1.15

ments Ltd.
Investment

of

trust

4.3

27

management

.

Produces

0.50

Mines, Ltd
silver

zinc,

copper,

pyrite

is

now

Fla.—Robert J.

Dick¬

with Federated

Plans,

Inc. of Worcester.

8.2

6.10

and

*

0.75

Empire Life Insurance Co.___
Operates

as

Enamel &

life

insurance

90

Joins John G. Sessler Co.
(Special to The Financial Chronicle)

Heating Products,

joined

Sessler

the

staff

Company,

10

of

John

Post

G.

Office

Square.

W.

Truedson

Robbins

Street.

&

/

is

Co.,

Mass.
now

—

40

H.

0.10

processes

hardwood

4.4

and

,

b2.65 ;

3.8

5V2

3.6

distributes

flooring

Bakeries
Canada's

of

bread,

Ltd.___
largest

0.20

inde¬

cakes,

biscuits

and

"

con-

fectionery

Herbert

with

Inc.,

/

pendent bakery operations. Makes

(Special to The Financial Chronicle)

WORCESTER,

9%

con¬

Flooring & Wood Prod¬

Mfrj.,

One

•-

air

etc.

ucts Ltd.

General

With H. L. Robbins

furnaces,

ranges,

ditioning equipment,

Erie

BOSTON, Mass.—Bernard Kalus
has

Stoves,

8.3

co.

0.40

-

6-92H




1.50

(Special to The Financial Chronicle)

TAMPA,
330

8

4.1

2.45

type

With Federated Plans

Exchange

ORONTO

pire

The

0/10

materials,

the

East Sullivan

MITED
[embers:

Article

8
metal"

Ltd.

•//

investment

who

5.0 *>;

hold¬

&

other

and

corrugating

Campbell
V

sales¬

and

■'!: 10

5

of

Operates

with

compensation.

the

3.9

pro- -

Bulolo Gold Dredging, Ltd.

and

///;/■/:'

future

38%

you

the

material

of

&

cane

development

gold

—

One

y

largest re¬
satisfaction for a job well

going

co.

timber

solid

very

investment

offers

done, and
business

of

a

1.50

grades & pack¬

more

Products Ltd. !

rela¬

-investors

V

power.

field

wards in

w-

'

real

8

products

British Columbia Forest

establishing

build

can

of

Co.,
___'v

0.50

sugar

or

r

from

confidential

allied

;

you

clients, and
securities, taxes,

you

manship
'

of

an

to the particular invest¬
requirements of the indi¬

buying

'

both

1*00

etc.

as

ment

v

clientele

y'

If

raw

50

Boxboards,

con¬

your

know

vidual,

m,

pos¬

how to analyze the needs of
your
client both from an
emotional, as

MONTREAL

Telephone UN. 6-5371

and

with

respect.

lvo6

on

interests

situa¬

their

business

standpoint

pleasant
also

McGILL

their

youir

tions

CANADA

gain

can

Paper

Bathurst Power & Paper Co.,
Ltd. "B"

open-

bettering their

&

and

Prospectus,
ing

in¬

tion providing they meet with

'

485

of

30,

of sugar

ages

than

minded, fair, and alert to the
sibilities

June 30

Barymin Co., Ltd

an

their

to

duces

with

and

June 30,

June

Refineries Ltd.

analytical in their own ap¬
proach to investment and estate
you

Paymts. to

Acadia Atlantic Sugar

of

aware

and

planning. When
people who 'have

Power

Ltd.

methodical

more

tion

Based

—Canadian 5 §—

substantial

who

also *

are

12 Mos. to

Divs. Paid

amounts of securities with you.

faxes

Quota-

Years Cash

larger when

are

% Yield

.v:

Extras for

secutive

have

salesman, advisor,

Approx.

Including
No. Con-

quantity as
well
as
quality. The rewards and com¬
pensations for your efforts as a

...

270 St. James St. West

likely of

When you ob¬
such an account

nature.

control

and

you

Calgary Stock Exchange

»

than

more

substantial

Exchange

The Canadian Stock
The

is

Exchange

L.

Pearl

♦

Quotations
price
June

prior
30,

reures«nt

to

that

June

date.

30.

Bid

sale

1956

and

§ Add current Canadian Exchange Rate.
b Bid.

^prices or the last sale
ask' quotations are as of

1956.

.

•

•

!

-

Volume 184

Number 5572.

The Commercial and Financial Chronicle

..

(1321)

PROSPERITY
Cash Divs.

Quotation

Paymts. to

June 30,

June 30

secutive

12 Mos. to
June 30,
1956

v

1956♦

well

Oil

Grandoro
'

contractors

drilling

*

Holding

in

co.

industrial

Wholesale

^

%! r:

-Great West Saddlery

and

oil

mining,

securities

2.00

Co., Ltd.
of

distributor

4.0

0.50

0.02

Ltd.___

Mines

bl9V2

.

general

muse., -and riding goods
Hydro-Electric Securities

Corp.

v

10V2;

!

Industrial

.Ltd.

2.50

531/2

0,55

10%

5.2

acceptances;'also small

v

international JBrdhze Powders
6

Ltd. __-_l

V

%

.

Holding

Sub.V..

co.

aluminum

and

mfr.

bronze

powders' "

'

'

Co.,controlling

-

utilities-in

«

America

Central

J

public
South

and

f

Interprovincial Building
r

6.8

12%
4.15

0.10

La Luz Mines Ltd..

i

.

gold

0.15

Z

2.00

gold producer

O.371/2
washing

lawn

dryers,

Brick
first

3.00

company,.

Mitchell

»

(Robert)

Co.,

inal

tube

0.75

for

and

paste, shaving cream
semi-liquid products

bl2i/4

6.1

1

ladies'

2.00

9

44

4.5

44

2.9

1.37

0.03

a

program

is

seem

friends

the

get

by

some

of the

'

Co.

'

,

Renewed

A

been

case

Investors'

put

the

time

this

request

"■WILLS, BICKLE

would
orig¬

COMPANY

&

made.Z There

been

the

in

OP

MEMBERS

to be no change of impor¬

at

Digest
on

in

sale

than

had

Copy of our monthly

is available

needed/ funds,

rates

the

easing

Pension

THE

boom

THE

44

EXCHANGE

STOCK

TORONTO

INVESTMENT

DEALERS' ASSOCIATION

OP CANADA
1

Toronto

EMplre 8-3081

King; Street West

in

the

mortgage

Funds Turn

'i.

i *

/'

.

*'

ft

STOCK and

" -

»8

.

f

BOND

BROKERS

to

Non-Governments

company

properties in Manitoba

The

Quemont Mining Corporation
Ltd.

__

zinc,

2.25

_

■producers

and

gold,

silver,

-

available in

8.8

pyrites in Quebec

0.15

b6

2.5

0.80

10%

dising

of

dry

goods
'

lines

store

retail

and

7.8

v/a'.-'v.

.

7

f0.70

19%

3.6

2.00

79%

2.5

1.00

writing
and related products

Ltd.

___

_

Newsprint

19

5.3

Lingerie,
rayon

_

suits

swim

and

the

other

products

funds

Platinum Co.
Gold

dredging operation,
lombia, South America

Mines

Stadacona

In

0.57%

Co■

/

"

%

9

(1944) Ltd.

0.02

0.31

•

Standard Paving &
Ltd.
General

"v

*

Materials

Ltd.

,"i

,

9

1.50

8

0.20

8

1.40

/

•/;*.,

40

Mines,
5.40

3.7

Union

Gas

Co.

of

■

and

distribution

VENTURES
Holding,

See

of

natural

■..

gas

8

yy ; '•

";'y.

■

and

promotion,
development co.
on

Victoria & Grey Trust Co....
as

page

not the

6

0.90

6

0.06

26

3.5

there

Gold dredging

_____

operation

in

the

0.62

9.7

the

Yukon

ket
♦

Quotations
price
June

prior
30,

represent

to

that

June
date.

30,
Bid

1956
and

1956.

sale
ask

prices

or

the

quotations
,

? Add current Canadian Exchange Rate,
b Bid.
T

Adjusted for stock dividends, splits, distributions, ete.




last

are

as

will

is

rate

as

far

'

Toronto Stock.

,

sale

will

near-term

securities.
usually

as

>

Exchange

GOVERNMENT-MUNICIPAL-CORPORATION
*

•

a

SECURITIES

is

the longer-

in

discount rate, will depend on

CANADIAN

BANK OF COMMERCE

tightness of the money mar¬
and

the

action

of

the

mone¬

tary authorities.

there

rate

is

to be
rise in the

seems

opinions around that
discount

EMPIRE

3-5821

TORONTO

of

However,

'/

CANADIAN

to

another increase

be

'

of Canada

happen

when it comes
bills, although this

case

Members

Investment Dealers' Association

term rates are concerned. Whether

trust company

Yukon Consolidated Gold

Corp. Ltd.

Canada

Montreal

(which is also

rate

Treasury

29.

of

Association

CATHERS & COMPANY

.

above the
government

discount

penalty
•

advertisement

Rate

3%), since the cost of borrow¬
from the Central Banks is

The

0.7

42%

what

to

as

generally
yield on

investment,

Company's

Operates

■

0.30

Discount

Expected

ing

2.8

50%

transmission

LTD...

exploration
•

at

v..

ProductioriT storage,

in

Change

to the discount rate

Canada,

Ltd.

Dealers'

of

BRAWLEY,
No

concern

___r__ir

sale

in the yield of
is
bringing
it
rather close to the 3% level, and
this has apparently created some

3.8

Exchange

St. James St. W.

obligations.

Treasury

uptrend
Treasury
bills

Quebec gold producer

.

437

The

?

Exchange

Stock

Investment

Pension

the

from

come

Z

y

j*.

•

__

paving contractor

Sullivan Consolidated

has

6.5
•

gold producer =

Quebec

Stock

Canadian

considerable part of
which is being used
purchases by the private

5.1

11%

Members

Montreal

a

short-term
6

_____

;Z

money

for these

South American Gold &
-

'"'

Governments,

stocks.

common

ports that

allied products

and

of

GRAHAM & CO.

funds, both the public and private
ones,
have been among the im¬
portant buyers of the recent cor¬
porate bond offerings, with re¬

paper

St. Lawrence Corporation

Silknit Ltd

are
cor¬

tax-free

sale

the

and

•

bond

and

non-Treasury securities, preferred

variety

Rolland Paper Co., Ltd,_____
High-grade

.from

inerchan-

and

rates
which
offerings of

;

new

issues
is
bringing more money into these
securities, some of which is new
funds, with the rest of it coming

\Variety of milk products

Wholesale

higher

porates

Robinson Little & Co., Ltd.__
tV

251/2

copper,

Quinte Milk Prod., Ltd. "B"
Wide

to

even

formerly with Shelley, Roberts &

being given

2.2

royalty from Howe Sound
of

1961

of

some

indications

are

consideration

by the Government (Agency
appears
to have been made in
recognition of the uncertainties
which
have
developed
in the
building business.

6.4

hosiery

-lease

2V2S

The

withotft

not

>

terms

1.27

through

.

of

one

for

market

higher

the

less,

Operating public utility
Nor-Acme Gold Mines Ltd.__
Co.

sitions in these securities are very

th$; money markets. Nonethe¬

on

Ltd.

Co., Ltd.

Receives

issues

pretty well liqui¬
dated and it is reported that po¬
be

to

are still being pushed up
and, until there is some change in
there is not likely
to be any lessening of the pressure

Newfoundland Light & Pow.

•

These

conditions.

be
:

a

considerable bet¬
take place pricechange in money

wages

0.32
Manufactures

any

govern¬

to be in

this condition,

number;,, of

Mills

that

to such

psychology, which has been driv¬
ing the economy ahead to higher
and
higher t levels.- Prices
and

ether

__

Operates
and
owns
apartment houses

There

mature.

at¬

are

is

This

have

rates,

offerings

tance

7.3

tooth

Monarch Mortgage & Invest¬
ments Ltd.

Hosiery

12%

;

^

containers

to

appears

Modern Containers Ltd,.;

National

been

Ltd.

products

Makes

at

have

and other

nickel

bronze,

metal

order
even

24%

1.00

Brass,

that

Borrowing

the

on

5.2

4.Q0

1.25

.•/,

.

with

seem

for lack of interest in

interest

5.0

financing

-

■

•

could

terment

at

Attractive Levels

;

matter of fact, some

a

back

"A"

:

in

1.3

225

0.20

Co., Ltd.__

&

where

position

,

Governments

of the
corporate bond issues which were

quality face brick

exploration

on

postponed because of the uptrend

Mining Corp. of Canada, Ltd.
Holding

securities.

reasons

As

related products

Newsprint and

Makes

5.0

71/2

•

Mersey Paper Co., Ltd.__
Milton

obligations

small.

modest

a

ment

8.2

machines,
and
food

mowers

•>';'/

choppers

been

-

Maxwell Ltd.
Manufactures

.

Yields

of the issues that

some

intermediate-term

The

through the medi¬

size

which previously
going into fixed

funds,

Corporate

•

is

be

Treasury bills or tax cer¬
tificates, is not expected to be

one,

some

Government securities.
1.22

0.10

Mines,r Ltd.:
Ontario

better

There

levels

at

are

not

the

MacLeod-Cockshutt Gold
t-r

found.

income

7.5

producer

•
■

the

it

is believed that
appearing in the

be

Intermediates Receiving Attention

of

um

fairly well received, because

had

■!

gold producer

Mines, Ltd

Ontario

still

side

when bids with

tracting

1.9
.

Nicaragua

appear

rates

improvements financing

Macassa

Likewise, a 3%
rate for'
borrowings by the gov¬
ernment might also have political
repercussions.
/
V"

been
0.85

/,■■■ Credits, Ltd.
Home

to

will be sold for tax losses.

ury.

be

easy

government

.

0.8

285

2.40

International Power Co., Ltd.
Holding

It. is

near-term

sell

so

in the presently depressed and in¬
n though there
ing in certain of the intermediate
is no lifting" active market. The 2V2S of 1963
and longer-term obligations, but
of the'cloud of bearishness which also appear to be getting a mod¬
it -is not large enough yet'to be enshrouds the government - mar-" est amount of attention.
of any real impdrtance in a very
ket, because there is so little in¬
defensive market.
terest
in these
securities, other;
Joins Lloyd Arnold
:
than the short-term liquid ones,
The demand for money is show¬
(Special to The Financial Chronicle) .^1
there
are
nonetheless
opinions
ing no signs of abating, with new
; BEVERLY HILLS, Calif.—Robr
around
that
the
quotations
of
issues
of
corporates
and
tax-J
many
of these are approaching ert F. Bernhard has joined the
exempt obligations coming into
levels where limited scale buying- staff of Lloyd Arnold & Company,
the market in very large amounts.
would not appear to be too pre¬
404 North Camden Drive. He way
These
flotations, however, have

4.7

loans and general insurance busi- K
ness

future.

near

wise,

whether

interest from time to time appear¬

•

Purchases

V?-

the

in

market

can

Corp.,

Acceptance

pected

exactly to the liking of the Treas¬

at least

3.8

Management' type investment trust

,.Lv

at

being pointed out that a 3% or"
higher; rate for short-term bor¬
rowings
b,y
the
government,

the
0.40

-

_

market

been

According to advices,
however, the interest in Treasury
issues is as limited as ever, with

12.56

tf-fl- :8tore
.

Government

has

showing signs of
greater recuperative powers, al¬
though these rallies still seem to
be very much on the professional
side.
Reportedly,
buying,
for
Treasury trust accounts has also
given the market a temporary

3.9

5.10

0.20

ada Ltd. "Grd." & Class "A" /

v

will

buyers

the

it

but

market,

future for
The

times

1956

Can-

of

Governments

By JOHN T. CHIPPENDALE, JR.

-Canadian $ §—

Petroleums

on

in

conditions

stimulus.

Divs. Paid

General

Reporter

% Yield
Based on

Years Cash

investors.

not

are

work out under current uncertain

Approx.

Including
Extras for

switches

Tax

Our

No. Con-

institutional

smaller

CANADIAN PROGRESS AND

41

not

a

to

be

ex¬

BUILDING

42

(1322)

The Commercial and Financial Chronicle

Continued

from

ployees

15

page

for

working

for

big

a

manufacturing,

New
York,
has
42,000 manufacturing plants
turning out products of almost
every nature."

company.
„

A Richer Life in

a

.

_

Real

Poorer World

,,

paralleled oil. One or two of the
biggest steel companies have ventured

„

WT

of

,

_

.

the

teamwork

threat

most

was

nationalization,
Without
getting into any legal
arguments
about
the
rights of
sovereign nations to nationalize,

people from poorer resources may
prove to be the most difficult of

abroad

as

Too

Big

for the

Biggest

tained earnings to finance

sub-

a

stantial portion of the capital
nee^s of industries faced by such
faw material development probas we have been considering,
The unforgivable sin for business,
energy by a gigantic wartime conor little,is to fail to supply
sortium
under government
aus?he pabllp
the goods or servpices in an effort far too big for
wants when it wants them,
and single company — even the Business
managers facing huge
Perhaps the most spectacular of
recent examples of the ever
increasing need for more
and
bigger
teamwork
was
the
discovery
and release of a t o m i c f
the

biggest.

In effect the government
mobilized the nation's industrial

capijal requirements due to expandhng demand, costlier raw ma-

and

terial

research

for

resources

the

Manhattan

project in much /the
way that it
mobilized its manpower for the armed services. For
the most part the government was
no more

responsible for the facili-

ties and

the

talents mobilized than

for

was

the minds
and

men

ment's

about

role

forces.

bodies

The

of

govern-

simply

was

it

who made up

women

defense

our

and

to

bring

bigger piece of teamwork
private industry had thus

*a

than

far developed. Indeed it is
tion whether under some

a

ques-

the

of

interpretations given
our
antiquated anti-trust laws private in-

dustry would have been,

f,apj!a*

mankind
pushes
irnmi
,qheta
frontiers of knowledge

me
the

safmrf

or-

tne^saiari or

Tax

at

bpth

loom

we

and.
capital

when

larger than

be-

ever

find powerful forces work-

to

discourage

teamwork

form

back

of

investing.;.deterrent

primary

js 1Sflati0n' which
gets

that

call

we

At h°me the
lender

home

at

eTtime

of

which

affiliates/
General

course

Petroleum

a

sovereign
child,

is

vestors

like

power,

incapable

it

of

giving in-

that

assurance

specifically

minor

a

it

will

do

promises

to

do, and will not do what it specif¬
ically promises not to do.
too

much

about

and

is wise.

too

what

little

I know of

be

may

about

what

better way

no

0f killing the goose that lays the
golden eggs than for an underde-

purchasing

ranital

pprharv?

that

given
given

enough
enuugn

time
unie,

on
un

from

products,

There

and

are

who

some

while big business is
.g

sociajiv

^ends

eter

of

the

discoveries
discoveries
As

I

on

known

world

become
oecome

where

to

feel

oossible
possible.

indicated, teamwork
many forms,

+iS e®sence

^at
A°in
together to accomplish what they
not do at all, or as
easily,
As_ eaTSxiJ^
or
as
well, by themselves. It is
teamwork when one man plants
1S

-

--

could

enough

other

when

for

makes

work

a

two

hoe

74,000

while
It

all

m

the

team-

is

Socony Mobil

coordinate

efforts
to

parts

of

the

their
world

find, produce, transport, refine

and

market

when

one

,

oil.

It

is

who

man

teamwork

knows

how

problems

he did not originate and
may not
understand, to aid another man
who thought
up the problems but
has
not
learned to operate
the

of

them

between
wvuwvcu

rich

and

x

anci

corporations
corporations

narticioate

in

and

this

in

All
In man v
many

number
number

who
who

ex-

ceeds
by far the number who
participate through the pooling of
skills.
Of the
25
largest U. S.
industrial corporations, 19 have
more shareholders than
em-

ployees

Our

than twice

The
that

has

comoanv

as

one

corporation

than another does not

its

average

more

many

fact

shareholders
wealthier

are

is

mean

the

on

individuals

or

calculator.

that they are different
in
any
other significant way from those
0f the
smaller corporation.
In-

vestors

stead it usually means simply that
there are more of them.
Generally

And it is teamwork of
the most essential kind when
in¬
—

hospitals
—agree

men, women, colleges,
and insurance companies

to

supply

materials for
never

even

promise
with

a

to

interest

the

tools

and

project they

may

see,

return

in

their

repay
or

to

give

for

a

capital
them

a

share in the profits, if
any.
In

this respect, too, we see
need for teamwork on a
-

-

-

the

larger

and

larger scale

capital costs
increase
and
accumulations
of
capital in individual hands are
pared

as

by income and inheritance

speaking,

a

more

abundant

life




for

more

larger

number

of

rnmnanv
company

a
«

is in capital
assets, the

exajt

'

recorcj.

values

at

people

larger the
who

have

Thpre

Big

comparies

f

instituted

government-got

;°reso°cial sec?r^
com/anV
pension
oot

gckto

*;/

iohs

J0^
dpLpLmmPi'
cwattirli flfH Wh lnh^wfll
onitpH

f

alw;,v<!

v,P

+hnn

n

k! mSf

Hnns

nnniil
•

.

,

.

,

P^^ics, partnerships
rnn

£

,.

mm

■

..

individuals

or

"tw^neWnte/nr'•

are

Dlan

to

we

infer

from

b g companies
men?

-"forfeit. wnS?

H

thpLpivpsif

f

nvpr^it* rnmnlnilff

bavA

hptfpr

pace

all

this

are managed

Frankly

I

doubt

inh

fnr

b^lity' their future is
their number should
+hpir n,1r"h^

thp

mstompr

anH

it.

and

secure

continue

to

increase.

programs help to attract good

vunDtivauuu
Conservation

preventive.

member

that
ma

nieinuer

"We

xa
is

"

at

a

Small

This is not just
^

.

,

Businesses

theory

or

wish-

thinking. The number of operating businesses in our country
reached

You

big

slaughtered

were

time

by

local

+u

x

reject the notion that higher
tax rate? should applY to larSe
corporations than to small
Or

that,

at

teamwork
vestors

time

a

is

who

our

join

when

best

ones,

greater

hope,

forces

to

in-

do

a

? Quarter million, at the

^as^ yeaF* .*n
three million.

end of

^aS
It dropped below
,

u

j

^arinThe"dp'ore"^^1ofToqTand

a£rain

durini?

Se

the

war

so

tL' LmbV

te

the

of

in-

Lsl-

in the last decade has been

Bigness
How

social

are

sequence

should be
teaming

analogous

to

penalized

up.

It

years

have grown pretty big.

ag0

Further supporting the thought
that big business and small business

complement

each

other

was

a </ar card I saw in the New York
subway on my way home a few

simply

would) be

penalizing

em-

the

Thomas

benefits

"Almost
are

it

1,000,000 New Yorkers

said.

"The

in

manufacturing,"

world's

leader

in

•

,

doctor
career

That

big

erate

engaged

a

.

™

more

smaller

who
in

one

companies
in the

ones

and

to

eye

hence

count for

&
of

ATLANTA,

a

op-

than

cannot

something too.

Ga.

—

Clyde

B.

Spears is now connected with Al¬
lied Investment
Company, Walton

Building.;

v//•-;//

.;■//

With King Merritt
(Special to The Financial Chronicle)

ATLANTA, Ga. — Sam I. du
Bose has joined the staff of
King

-.

Merritt & Co., Inc., 849 Peachtree

Street, Northeast. ' Mr., du Bose
previously with Shields &
Company.
/
-

was

Joins Bache Staff

/

(Special to The Financial Chronicle)

CHICAGO, 111.—Roy G. Parry,
Jr.
&

has joined the staff of Bache
Co., 135 South La Salle Street.

Aline Ketelsen Joins

Beyer-Rueffel

Co.

DAVENPORT,.
Ketelsen

has

Iowa

become

—

Aline

associated

with

Beyer-Rueffel & Co., Kahl
Building. Mrs. Ketelsen was for¬
merly an officer of A. J. Boldt
& Co.

expect their sins to be overlooked
may

place

(Special to The Financial Chronicle)

community.

public

81-7-74/ Second

Joins Allied Inv.

longer

making

tend

Ex¬

(Special to The Financial Chronicle)

y

e"p "•J?.

is

Stock

J..- Hickey, Jr.,- Vilas
with a low net score

con¬

•

a

;

Tourney

Hickey,
87-12-75,/ vf

With Mutual Fund Assoc.

thrmig^^ow^^u^once^^cts^on
//ndp/s quUe dUferent from the
]jfetime

/;/

V

;/...

American

of

score

:.

rather
rawer frequently point
uequexmy punu
same
course:
The hawker

famiiy

richer life

a

Harold J. Brown, Brown,

V

of bigness?

..

the

-

to

among the low net scores went to

the

///Wh/Z/ntt
to

way

Joseph F. Reilly won the Presi¬
dent's, Trophy with ■* a
low
net

When

from;.

/

Big companies must t&ke

pe.

kinds.

Kiernan & Co. with a score of 85.
Mr. Stuart received the Chairman
of the Board Trophy.
/
/

of two

view than sma11 ones just as the
pilot of a great ocean liner must

or

nignts ago.

for

one

butchers

Social Benefits Result

nesses

+v,

re-

packer's

use

?J?arp" £n.d> werethe way 10
by small some of /„////
those that
20
a emits

^-x

may

meat

by-products, some of them
in
medicine, was ap¬
palling.

a record high of four and

the

the

change Golf Tournament on Sept.
20, with a low gross of 77. Runner

xxaoxx-axxv

essential

*

on

on

Mark J. Stuart, Cowen & Co.,

won

loss of.

Big Increase in

complement

| Winners Announced
/

basically

cust°mer of that slogan.

clearly

-u

em-

everything but
the sauea1-" It took rationing and
the black markets of 'the second
world; war to bring home/to us
the truth and the value to the
cattle

business

thP

ployees. Safety .measures, notably
when a company is large enough
to be a self-insurer, cut operating
waste

big

business

A. S.E. Golf

PmninwP

3likef fPension 3nd other benefit

costs.

that

guided by it.

they do

a

•

is

a

.

I think

this point

little

poorer world is clear.
I have
the utmost confidence that if we
can but see the
light we will be

be-

dates

Big companies have set the

J a

kinds andsizes, in
the world.
'
^

1M3

pooled their savings in it.
sees

in

around

™0^°"™cVatl°n 3nd antl"pollution
Are

all

of

Mankind's

old-

measures.

sl°gan,

h

en¬

to continue to lead in social
bene¬

Big companies have led the way
in introducing safety measures to

:

of

third

* fits of many

every-

tirp

/;////;

must

record
and by their nature
big
companies have led and are likely

In

.

world in which a.few

don't

///'
we

formation

!

each other. Neither thrives
destruction of the other.The fourth is that both

'"it

have

control

the size needed to

capital

parts

The

and

it

that

material

all

opinion such a view is without
foun(jation. ; Let's
look
at
the

anyone who

taxes.

How to raise the necessary
capital to meet the challenge of

the

t

teamwork

through the pooling of capital

a

companies

fvjjrjrr

in-

somewhere
uwi.
poor.

the
the

giant

of them

some

modest circumstances

the vast majority

I envision

ro«

the sovings of

dividually wealthy,
in very

«,an e
?lc ca'cula" larger
answers to

tor, gets the

mmnratinn

people—some

many

have

jby agreement takes

corn

T

J////!,/?/ /
resents n pooling of

to

job.

and
movement. To meet the
challenges
that
face
us,
vast
amounts
of

that

necessarv

undesirable

rim

r

growth

the

courage

'

.

place the individual

should encourage, not discour¬

:

the expense of human valuos?

whv

may be wondering whether

that

most
effectively
large business organization,

The second is that

buy

we

15,000 companies.

some

Is a tax
°Y,eveil'

You

recognize

a

do

who

u

^

;

must

nesses

our

pooled or not. There tharif "emotionVcan"

soriptv

"

•

capital will be required for busi¬

sell

,

merely to
the perim-

-

we

34,000; independent/dealers

-

T<or,li;

es¬

suc¬

brought about

age.

0f

pretty much
be "quieted"
fig business
Proposal in Congress,; down, self-interest will dictate a £e
i"
aown, sen-interest will aictate a fa11i4ame virtues and the same
Aral
di-faults as the general run of mantrails bftilt bv others-but it took
^lch would strike di- course conducive to continued
hundreds of men working together/• 7
teamwork by investors; .teamwork across international' ^ *
to enable the first two men to
lt /s a.Proposal to apply a grad- boundaries.y/.yV
/•
/f Social .Behefits iCkuse
f
reach the summit of the world's
^Bigness
income tax to corporations ; if, as I Believe,n teamwork on.*5/:_
highest mountain The individual "'J"8.4 1tas<-Super- an ever larger scale is going to • The social benefits of big busiis no• less important than he ever ficially
plausible, this proposed vbe required to solve mankind's/^s are both a cause and/an
was
but in rnC^e^ Snd more fields !9x reflects a
>;,k of understand- material problems in the next 44 effect of bigness. How a cause?
of human endeavor
large scale
of the need for and the nature years, is that good or bad?
^ ^ In ?ur competitive
(pamurnHr
',
of teamwork m our present-day
society comteamwork is required a
VA„
panies grow big because
alone
axvxxxc,
diuixe,

and

me

contend

by

up was
pipn

to

the
more
important, supply
2,700 independent distributors and

That hits at

o^r/ouldwaJrup1'mwhitne; all savings,

us.
";
First,

be

one

Sometimes people seem to think

iegal,

to

appear
are

would

thought

we

of

is

we

of

the bigger the
job, the more team¬
work required to do it.
In those;
areas
where this teamwork can

United

means that the

less

tat^the'^nknownf^ou

explorer

suggest that what is most
is an affirmation by civil-

what

Teamwork

on

'Ironically,
abroad,

frnnt.oro

larger must be the
larger must oe

states

if

of

reports

its

good,

cessfully with the problems ahead

half

all

.

an

A

ing

farther

j

and

a

h^p our sales it does unless a to theanabsurdity that
be found to put agflen'io/s S^years o/more
to meet our capital re
end way

notmng

fore

the

...

and

Socony Mobil and

rely.

can

need, when they need needed

quirements unless we manage to
make sufficient profits to finance
internally.: !

Everest

thn

tors

12

which

sential

billion
dollars it took in last year it paid
six billion to those suppliers,

to conscript capital

from another nation. Instead of
asserting the power to break their
contracts unilaterally, nations
peeding foreign capital should be

suppliers

of

out

probable

to be

beginning I said I
courses

action

out

;.ance may

Teamwork Required to Climb

The

a means

it. Oura being a free country, our lzed nations that a
fellow citizens are able to do what power has the authoritysovereign
to make
they wish with whatever part of a contract binding on itself. Prec/their income is left after taxes.; edents to the contrary notwithA g?'many save relatively little, standing, world trade may be
While their spending of the bal- strangled in semantic red tape

needs

out

found

21,000

that

seems

The Way Is Clear

suggest

Motors

bas

Thus it

they will continue

■

borders,, but,; small businesses
spring up both
rather to attract the vastly into serve the big business and to
creased amounts of foreign capi- take
advantage of the new opportal they urgently need. There are
tunities it creates. General

great differences in respect to
the availability of capital in different' countries,
and
thus far,
except by conquest, no nation has

on

and to do good.

central facility like a railroad or
highway along which all kinds of;

their

and

sources

hmtter that it is almost impossible
to *ai.s®. on t ^ outside all the

would
today be, permitted to engage in
teamwork on the scale that was

n„t

within

,

depreciation asking themselves if there is not
charges made inadequate by m- some way whereby they can make
flation have found as a practical pledges on which outside inves-

or

necessary to put the atom to work.

tured

that

Big business today is not an
octopus that grows by devouring
small businesses, but rather is a

,

reliance must be placed on re-f

than

character.

average

Big Business No Octopus

'

.

benefits rests on factors
in their bigness rather
accidents of managerial

At the

-

V

the

.

,,,

•

that

—

social

inherent

manufacturing plant in our biggest city has fewer than 25 employees.//;
:' 1 /

alone,
but
their all the big problems we face in anyone who sees the next 44
years
smaller competitors have banded .the next 44 years.
as
I do must conclude that the
together in joint ventures to share/
rnntinup
tn/RpIv on
real Pr°blem. of underdeveloped
the enormous costs and risks both;:/wn
/nations insofar as foreign caoital
in foreign operations and in work-•
IT"
^ is concerned is not to get control
ing low grade ores in this country. /It seems likely that continued 0f that which has already ven*

correct

that

in

interested me most was
the fact—rif my mental arithmetic

investor

to

itself

am trying to make
big companies' leadership

is

What

c

,

manifests

frequently

„

Underdeveloped

Nations

_

Abroad,

Can Be Achieved With Teamwork

The point I

over

Problem

:

Thursday, September 27, 1956

...

(Soecial to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Ray

W.

Capron, Roy S. Chan, Herbert

A.

Hockley,

and

Frank

filiated

ciates,

William

G.

Phelon

Yip have become af¬

with

Mutual

Incorporated,

gomery Street.

Fund

Asso¬

506

Mont¬

;

Continued

from

nition.

Ramification of Inflation in
Business Trends and Outlook
'Y

v

''-y".

r,

■. -

.

h/.

.v

_

«'

,

.,

application of

But

The, fact

•„

been

having

tion be put on
„

0

a

a

defi-

lost^ in

possible without adequate capital
formation. And this includes the

rational basis.

lation,

accompanied depres-

or

sions in the past.

:

-'••■V-

,

,

£

.

,

,

of

in

.

These

r.

of adjustments have
"rolling" adjust-

types

ments.-The two recessions of 1948
1953

and

.

of

were

broader type,

a

triggered by the
irealizations that inventories had
since

both

were

become "too

There is

-c

high."

rv-v

lot of wishful think-

a

ing that the old economic laws do
longer apply, but nobody can

;.no

be

dead,

Until it is proven

of that.

sure

that' the

.

laws

economic

old

are

revision of the old eco-

any

-nomic textbooks would seem pre-

truly

the

mature.: However,

en-

more

couraging part of this picture'is
we are learning a little more

r

or

.(1)

-

been

x

a

for

expansion,

showed, signs

showed

a

1*

iv

.'

1

u

/

Xll'

•

■

.

li.

•

fJfl .1 L

-

VV llVrfll

.

•

sort usually resulted.

j

warfl cycle.

■.

;.

and Edwin D. Etherington as Sec-

in

the

X x Jl

Ky CX X11.\

^

t

|u

vacuum,

"if you

increases,

can't beat 'em; join 'em."
sell the majority of

can't

You

today's

save

first

^

removed

were

.g

a

conflict between rising costs

for

competition

keener

and

the

ofa

ley, counsel to the Exchange,

i

,

.-.a

^l^to^^^stence
thrHtaccount builtuoove?

Borland

(Special to The Financial Chronicle)

a

idea

can

1

••

With Betts,

and

Sedit il greatlVenhlnTed3 Xn

Sev

graduate of Wesleyan University and Yale Law School, Mr.
Etherington was U formerly .with
Milbank, Tweed, Hope and Had-

idea

the

on

non-savers

that it is better to

A

CHICAGO, 111.—Benno F. Nell
has

been

r

added

to

staff Lot

the

Betts» Borland & Co., Ill South
La Salle street» member of the

eve^hndv
consumers" doUar. In many cases the
; and maintained .. New -York and Midwest Stock
J° "i^^tion/^^everybody seems price increases are not made be- ii^uiditv—orTmeriencv"reserve"" Exchanges.
Modern thrift promotion must
thejerm differently £ause of strong competition in a llq,uAdi2r^/u5Se^cLllse!I!;.
Joins
•

• . •.•

■

t

* ■ 'I

1?
at

$

inflation
■inflation

u

must
must

be

f^he^d^ction^^

|hel?ta
neip m

a

standing rule;

I

t

V

each

defined

All too often,
the

that

overlooked

is

false

in the evaluation

^
of wage pressures.

debate that the term

economic

be

sa£et

f

sense

it

There should be

■

V This situation can lead to a

point to be made.
in

O vJ. \J —- X J—.

\J

Ov

given market..

interpret the term differently
different times, depending on the

J;

as

vears'

^

difficulties in maintaining an up-■

be

must be based on
the time-honored political advice:
a

"

-

•

price

controls

£b

however. .There is fairly
terrific general agreement as to what con-

(3)
In the past, when farm
prices and farm incomes were in
a
protracted decline, the rest of

'

to

seems

^ewVTwartLf^atioS'un^ «*n.sPend- But you : can sell

against Inflation justas it is
clergyman to be against sin.

ence,

ly while Ibank loans were rising
steadily, economic upsets of some

:

in

of too

caused
by higher wages, can be kept
"hidden" for considerable periods,

politician

who is for inflation,
It is axiomatic for a politician

(2) In the past, when bank in\ vestments were falling persistentiV

definition

a

that

fact

„b,?ying
off.

of leveling

narrow

use
lies

when-.There is one important differ-

reached

had "been

'•-!

the

in

n

Inflation ;

We have yet to find a

^capital expenditures, particularly
*

of

Problem

The

.•

In the past, it has always to be
sign that the final stage of-Iw a

boom

-a

i

every

processes

question.
The danger
„

111

vf
"'I
b
Right now, quite a few of the
old laws are being tested. Just to
pinpoint a few of them:
-day. V:'.

the- notion

to be effective and not completely

less inflation.

: that

rabout .economic

when

.

to be called

come

stability actually has never been announced the appointment I of
more
important Al*
than _A is A*1
it
today John R. Haire as Vice-President
"A

^

postwar adjustments
single industries,

our

been

Keith Funston, President of the

„

,

thrift an<* protectors of monetary New York Stock Exchange, has

spreading that the individual savr retary of the Exchange. -r. J
low
Mr. Haire, 31 years old, joined
are probably more important than billion higher than their 1955 low er is a traitor to economic growth
billion
election results.
mi
----- -—±-----j —-—
........
. point. The rise was continued even
rather than its very backbone., the Exchange in September, 1953,
At the risk of some over-sim- fn july during the steel strike,
This poses new and difficult as Special Assisstant to the Presiplification, it probably can be although at a reduced rate. -V-■. problems in the field of thrift dent, and was appointed Secretary
stated that a Democratic Adminisd
f th
invGntorv Promotion, particularly in its re- 0n Jan. 1, 1955.. Before earning ^o
tration would be inclined to favor g •
reflects brice increases
lationshiP to instalment buying.
the Exchange, Mr. Haire, a Massasomewhat more inflationary eco- However still unanswered is the
There is nothing wrong . with chiisetts attorney, was legal and
nomic policies than. the. present ali_imDOrtant Question
to
what instalment buying,, except where financial aide to William H. VanRepublican Administration,
al- extent_if at an~the exnectation lt is overdone, in relation to in- derbilt, former Governor of Rhode
though in the case of a real downf furthpr Drioe -increases is ehdividual incomes and financial Island.
Mr. Etherington, 31 years old,
turn, a Republican Administration couraging companies to add to in- assets °f spending units.
probably would be forced , into ventories which otherwise might
Keeping up with the Joneses joined the Exchange as Assistant
similar actions.
aiready be regarded on the high has become one of the strongest Secretary in March, 1956. In re' This needs V amplification since side
'
&
& motives in modern American con- cent months be has been Acting
it leads to the very key problem
*
.
f
,
sumer buying;.. Instalment buying, Secretary while Mr. Haire assisted
of our future economic policy: the ?i
AJ*e *lc
01tne commodity in other WOrds,. is here to stay, the President in maintaining liaiquestion of whether there will be "/^eisiover^inq next^lewmontns Consequently, savings promotion son with governmental agencies.
should provide an answer to this

-

,

Appoints
Haire, Elherington

try, to their t depositors and ,to
themselves if they want to stay in
business.
:
* Their dual role as promoters of

,

have

NYSE

bility. They owe this to the coun-

*

Most

guardians of monetary sta-

mary

remains,,, of course,

And that does not spell that any form of inflation, sooner
recession.
;0r later, will show up in the shape
-...This, however, still leaves con-"-,. The outcome of the November 0f higher prices, which is merely
siderable .leeway
for
ups •; and elections will have a good deal to a
different way of saying that
o
-.downs, in the level of business ac- do with the future role of govern- there will be a reduction in the
tivity; More specifically, there is ment m economics although-it is. purchasing power of the dollar. r'
noihiiig to prevent future mslsd— essy to exaggerate the outconie
This throws now light on -the
justments either in specific indus- of the elections as an economic recent inventory trend. Over-all
-tries or in the whole economy, factor. Pre-election uncertainties inventories are currently some $9
economy.
started off

43

is why the sayings, institutions of
the country, are burdened with
the
labyrinth of discussions on important facet of personal thrift, the heavy ^responsibility of de^inflation during my whole busiThis puts an extra responsibility stroying the dangerous and apness
career on two continents, I
on the savings institutions of the parently
spreading
philosophy
am convinced that only in such a
country.
To be effective, they that a little inflation is a good
way can the. discussion of infla- must consider themselves the pri- thing for the country,

mechanical

6

page

(1323)

Chronicle

Number 5572 ...The Commercial and Financial

Volume 184

profit-

based

on

commitment

an

to

tary stability.

There

for

are

too many

not all in the ranks

the smaller and finan- of Tabor or agricuiture
^ n weaker comnanies todav is °
g ! i f'.x •
..'a
cially, weaxer cornpanies loaay is
The philosophy that it is profitely a

squeeze on

4etour to Ipflation.; In

able

^

borrow

because

Jime>.this profit-squeeze will lead ments jn aiJ probabilty

is not too much

respeS."y^the
respect. -Ana, yet we

(Special to The Finanoal Chronicle)

mone¬

vested interests in inflation today
and they are

Reynolds Co.

uncompromising

fight

CHICAGO,
Braaten

with

&

Clarence

-

R.

connected

Co.,
-

South

39
<

:

,

Two With Dean

be

made in dollars of lower purchas-

—

become

Salle Street.

La

reoav-

wilf

111.

has

Reynolds

'<*

(8peclal to The Financial Chronicle)

CHICAGO,

111.—Rob!eft

S.

thereby create a situation to which ."•^"7^" Snserous" poison Lerner and John A. Reich have
L nniv
nnlitical
aningP0wer^is a aangerous poison,
,
P,
,
.
and in the final analysis, a fallacy,
associated
with
Dean
swer
regardless of the party in That has been demonstrated time become
to watch
the week-to-week,, or means to "expand or to puff up'
tMs answpr
we might as
?
? oeen aemonstratea time
.
South La Salle
month-to-month behavior of some nerhans comes closer to the heart p0^*
1 n.? ?nswS- ^e1 m.1.gnPtas and again m the wake of all the ^.lueJ &
AU0 ooum ua oaue
montn to
montn
penavior 01 some pernaps comes closer to tne neart weU face lt Jg artxf^xai stimula- prpaf
Furonean
inflations
All Street
To

*

keep
is
is

tvnp
type

an eye on

far
iar

■

trends of this

imnortant
important

more
more

wis

simple' fetfplanation in

than
man

dictionaries
dictionaries

«

.

that
tnai

"to
to

the

small-

fuprA

nnp

inflate"
innate

nnwpr

^specific business indicators. ^a.
:

Assuming

"

n-ii

•still

these

that

-I

vj

old

^

rules

valid, it certainly would

are

approaching a
critical point in the boom.
yj. This question is closely tied to
; the current and potential trend in
plant
and
equipment
expendir tures.
;
The current capital goods boom
is not merely extraordinary; it is;
nothing short of amazing.
Even
tight money has not broken its
seem

that

we

are

'

"*
'

%k. a"d « is not like'y t0 da

definitions

,,

,"i.:?

v
*

.

,

been

m

business

—

expansion
,...

long-range planning.

This long-range planning factor
intense efforts;to stay

plus,the

;

ahead in the race to improve competitive positions through, technological progress are the two
major forces behind the current
plant and equipment expenditures

_

:
•

"

boom.

-

Stock Exchange.
"artificial into goods has always ended in Boston'stwk Exchange:

dangerous and why any
stimu]ation
if
continued

on

long

The

use

of artificial stimulants

peri0(js 0f genuine emergency
was
0ne thing;
it is an entirely
-n

different
continued

proposition
use

of

to

the

propose

same

and

similar

as

strongly have absolved it from
an
indictment.
Obviously,
that does not make much sense,
There has to be a better solution.

which

look

such

would

subject

only meaningful definition of
inflation is one that corresponds

forces.

The

ceived

:

Everv since

~

'

•

good
the

on paper but
economy to a

"plan" instead of relying
the
free
play
of economic

/

Once

if

-

.

postwar

phase

this

we

•

IV

end. we believe

V
; * Used in such a way, the term
again it begins to look as embraces the wage-price spiral,
may
be going ahead too as well as deficit financing and

ing
the
validity
of this oldfashioned rule.
We can stimulate the economy

credit inflation but always with

by pyramiding personal and cor¬
porate indebtedness, but nobody
^

°

vet, here aggin all that one; the connotation that the boundsay today is that the
arles of sound restraint are no
•*
economy
would be headid for linger observed with the result
somewhat lower levels next year that a threat to the purchasing
if economic forces are alldwed to power of the dollar is created.
Thus, the use of the term inDigitizedassert themselves without governfor FRASER
mental
interference, or if there flation implies some qualitative
http://fraser.stlouisfed.org/ outside stimu- judgment that goes beyond the
would be no other
.

And

:

can

safely

■

:

Federal Reserve Bank of St. Louis

are

no

(Special to The Financial

LONG BEACH,

Chronicle)

Calif.—John J.

winners when it comes to Campbell is now with California
losers.
And that Investors, 40 Atlantic Boulevard,
^
•

inflation—only

"With Less Effort"
"American science has not

period.

nimity. For reasons as obscure as they are profound,
our youth, although gaiget-ridden and gadget-ob¬
sessed, are turning awayifiom sciencfe to other fields
which
effort

with less effort"—especially
we fear,
*he ?tory
common avoidance of mathematics and science in
our schools and colleges.
We must not let it continue to be an American
"Greater

"with

still.
.
Solid economic growth is im-

trait.

t

promise equal or greater rewards with less
"—Prof. I. I. Rabi, Nobel prize winner in

physics.

tell how long such a policy
be continued with impunity.
Already, we seem to have reached
the point where we have to run
faster and faster merely to stand
can
cgn

stood still in the post¬

American discoveries and methods are
admired and emulated in every country of the
world, especially Russia. The future, however, can¬
not be viewed with the same confidence and equa¬

war

.

:

With Calif. Investors

devices
super

>

public usage of the term.
.Approaching the problem from
with

proven wrong.

were

fast.

.

the

tecti°n against inflation. vf
,,
' That is why in the end there

master
on

(

to reach preconboom growth totals

deplored by some observers
a£ inflationary while others just

been

-

forced liquidation of real estate or

Sh- WiU lead to itS 0Wn Un" other holdings accuired as prov

The Role of Thrift
that in the
Econoihk growth cannot indefil~
of ..this
boom got underway in Unithd States today the term in- nitely be&ased on borrowing from
earnest, its untimely demise has flation is used rather broadly to the
future
although in recent
been
predicted time, and again, indicate
any
tvpe of artificial years we have lived apparently
And each time, these predictions stimulation to the economy.
for the only purpose of disprov¬

'•

With Chas. A. Day Co.

,

s<? definite

is increasingly basing

on

.

A.

v.

—

■

or

regarded

approach- as deficit financing, monetization
ing over-capacity appears, it is of debt and even credit inflation.
quickly — and apparently effecThe existence of such conflicttiveiy—refuted by the argument. jng yardsticks explains why the
that business
particularly big recent increase in steel prices has

1

m

-

inflation. Obviously, m the earlier iiniljditv

this country, has
t
g
f
(Special to The Financial Chronicle)
as
almost:?■ prices--will not neces- from
money into goods develops.
PORTLAND, Me. —Douglas R.
synonymous with rising commod-. sg^iiy-rise
They may even drop
"
This type of inflation inevitably Hague
is j; now
affiliated , with
ity prices. Yet, in the European for r
while
longer
"giving ; us is short-lived. Its end always is chas. A. Day & Co. Inc. of Boston,
usage, not every commodity price something new like 'an inflation
increase is necessarily inflation- with declining prices That how- accompanied by heavy taxation
Joins Burgess & Leith
ary. Only if it is caused by mal- evcr> win be a transitionary pe- on land and goods as welj as high
(Special to The Financial Chronicle)
adjustments between > supply of riod only. >, • ■',
money
rates for the stabilized
• • ■ ■
goods and rising money supply is
All this is just taking the long
BOSTON, Mass.—Thomas Macurrency.
it regarded as inflationary. Hence, way around to explain why infla- ~ Th
'inflation
incnired flight goun is now with Burgess & Leith,
the term inflation in Europe has a tjQn in any form js
unsou1d.aPd
30 State Street, members ol the
Inflation,

long

of

evidence

Wherever

f
once again
Kev T.Y?
r11.131101?
1.orm»v°F °i?ce agf.n' kinds of inflation bring about ll•
narticnlarlv once the
h rGfiation
finished il(^.ul5llAy'
particularly once tne

'

•
h

-i-

connotation of currency
evidence that deterioration,, from its crudest

there is

although

;

of the matter than all complicated

tnese. oia ruies, qeiimtions.

less

rewards

effort."

That,

44

The Commercial and Financial Chronicle

(1324)

other

It

We See

.

the Eisenhower Administration, can not reasonably
charged with originating these problems. For the
most part they aggravated and prolonged; ultimate causes
are
to be sought elsewhere.
Those whose memories ex¬
tend back to the 'Twenties need not be told
perhaps
not even reminded
that we had a "farm problem" in
those days which gave the politicians of all persuasions
very considerable trouble/ "Solutions," virtually always
in the form of thinly disguised subsidies, were brought
forward almost daily, while horrible economic conditions
in the farm areas of the nation brought the most drastic,
the most widespread and the most persistent epidemic of
bank failures this country had ever seen, and for that
matter with the exception of the early years of the next
decade, have even to this day ever seen. ' out

be

—

it does little

-{'y'///>'" ,•'•

An

respective of the policy of the Re¬
authorities—the small banks
have continued to make consumer
loans. :
serve

You

which

is

the
one

would

Stevenson

has

of

states

where

important.
Mr.

the

farm

by which the country is
it to hear what

guess

been
vote

opponents

saying out there

Mr.

ity?

i

that long even before that devastating decade a
problem" of "proportions existed among us and
supplied the politicians with much of their thunder from
election to election year. It was President Wilson who
made a good deal of political
hay with his schemes for
making credit as plentiful and as cheap in Podunkville
as in Wall Street
and in the process set up machinery
which evolved as years passed into an ultra-elaborate
system of largesse now taken for granted by the farmer
and many others of this day and
generation.
During
those relatively early years, too, most of the buncombe
now
going the rounds about the uniqueness and the
primary role of agriculture in the economy was on
many political tongues-—and even that was a situation
inherited from previous decades.
•
far

so

v

have

changed in
they have

First,

respects.
become
more

many

contractual in character.

If I

life

insurance

policy,

or

member of the Teacher's

as

used

to

be

where

am

a

individual

the
you

—and

of

savings

the

large

banks,

or

New

some

far beyond anything that would
This brought lands into cultiva¬
prior to that time devoted to grazing
years

savings. That

is

in

And

the

nature

of

investment.

yet the Federal Reserve has

absolutely no control over it.
this,way largely responsible for the "dust
Look at the changed position of
>ts-^consequences.
When the peace years
subsequent to that great conflict were not able to sustain v/mortgages. Because of the es¬
tablishment of the FHA and the
an
agricultural economy of such blown up magnitude,
bowl"

and

VA,

great economic distress followed
lived
what

of

most

as

those

who

a

before any substantial relief
from farm distress materialized. Pressure on
Washington
had meanwhile increased to the

Hoover
a

was

basis

time

for

Deal

the

subsidies.

a

real

about.

with

understanding

The

farmers

and

more

designing politician

of

were

The

farm

more

choice

field

a
good imagination
what all this really

It

in

effect

told

to

the

for

chiefly,
results

of degree, but it

one

was

have been only,
important so far

new

at

the

farm situation
War I.

World

not

War

II

an

effect

or
as

greatly different from that

of

a

of

sort

temporary

now

occasion.

to

enormously

but

has

all

advances

succeeded in

"This

it

Throughout

tremendous

reduced

relief,

where

in

the

been

this

situation

on

latter

part

technology in

of

many

making it possible for the farmer
more

work

per

man

schedule

a

hour of work, and
great

deal

more-

is

the

per

In

more

are

maintained?

that

devoting




to

other

more

and

be

a

poor

You

the

efforts of the Federal Re¬
to make money tight, to re¬
the
availability of
bank

to

money,

the

increase

the

cost

-

of

requirements

reserve

-

ble

goes

consumer

goods.

In the
of

reserve

the

banks

on

the

only in 17

are

hundreds
finance
of

of

commercial

be used every

Against

you

had before. '
Credit's

money

ever

bought anything

sumer

at

the

credit

consumer

volume

and

credit

Freedom

the

of

role

con¬

that

plays at present.

At the time when the Federal Re¬
Act was passed, consumer

serve

credit played no role whatsoever.
In

fact, banks did

consumer

not

engage in
credit because it wasn't

a

self-liquidating paper. Today
you and I know that the ability of
the individual
tto earn a regular
income is a good collateral for a
loan.
sonal

to

a

Personal

credit

indebtedness
tremendous

has

extent

and

per¬

increased
and

yet,

pe¬

4%.

You

know

that,

and

I

have the open market-

we

eral

Reserve

cost of
are

the

well

its

tions

to

has

companies

It happens

stocks.

sell

can

the

taken

since

More

of

care

the

than

more

debentures?

is

Sam,

own

can also sell subor¬
debentures. And what if

they have to pay
£0%

their

They

by

bought

is

the

Irrespective of tight money,
sales finance companies have
of

durable

the terms

on

the sale of

mobile

in

check

up
as

they

part

of

1955,

f.

when

',
■

■

■

the

'

■

Now,

Banks

i

n'r.

Lend

would

one

say

can

loans

are

made

by

tive reserves—that is

they borrowed
excess

entire

period
after

to

The

this

with

small

free
banks

excess

oper¬

considerable extent with
savings deposits. Reserve require¬
ments

the

whole

a

disposal

to

The

into

went

buy

this

the

bills.

situation:

was a great
capital market
funds and
long-

the

the

went

up;

supply

of

at the same
short-term

great and

was

by

was

further

open

the

market

operations of the Federal Reserve.
If

look at the

you

Treasury bills
they gyrate.
is

room

as

to

for

movement

of

will find how

you

And I believe there
a

very

whether

careful study

the

policy, which is based

bills-only
the op¬

on

erations of central banking under

gold

a

standard,

fits

present economic and
ditions.

in

under

social

At least there is

a

con¬

serious

the country banks, question in my own mind as to
month, week after„ whether the bills-only policy is

operated

reserves.

ate

to say, that
than they had

reserves—throughout

month

week,

more

rates

accentuated

banks, by the country
banks, and if you look over the
figures, as I am quite sure you do,
you will find that during 1955 and
'56, whereas the New York City,
Chicago and the Reserve City
banks mostly operated with
nega¬

At

in

investments.

long-term

funds

financing durable con¬
goods through the banks,

market.

corporations

hand there

the

the

purpose of

but most of the loans
the small

for

time

for

summer—

had
their

at

also

on

the

control

they

market

one

pressure

term

that

made

and

money

the

on

the

had therefore

"

Most

the

some

short-term

You

was

(

Small

of
re¬

opera¬

securities

of

short-term

early

money

market

in

in

time

some

corporations

A.
'

■

in

were

bills

for

and

1956 — I didn't
August — were as

on

—

lot

auto¬

an

has

only, and that at
peculiar effects.
as it happened, for

early

market,

July,

easy

easy.

goods,

that

all

rather

same

offered

made loans to finance the sale and

purchase

to

some reasons, had to make
money
easier.
The Federal Reserve

than

52%.
the

to

that the monetary authorities for

4%

tax

reasons

Reserve

open

bills

example,

Uncle

corporate

position

a

known

Federal

stricted

do.

in

availability and the

credit, but for

very

us

times

dinated

is

influence the

Moreover, the large sales finance

-

Open

market operations the Fed-'

open

may

the in¬

on

day.

Bills-Only

operations, and naturally through

stalment plan, that the rate of in¬
terest paid is not a prime rate of

sumer

Control

Then

over

their

During
they

paper.

tight

all

sell

can

an emer¬

Market Policy

have to pay a rate of interest. So
what?
You
know, if you have

of

.

banks

They

;

requirements, is

gency measure, to be used rarely,
has been used only
rarely.
It is not an instrument which can

large finance com¬
always obtain money,

thq country.
own

the

' v

and it

The
can

riods

of

the

first

among
credit unions and

with

growth

of the country.

of credit

place, the business
financing is divided
the finance companies, the

banks.

secular

We find, therefore, that one of
most
important instruments
control, the changing of

Is it so?

consumer

panies

the

economy
,

durable

Reserve

Look

.

his

or

remained

I doubt it.

on

competition

in existence

From

worker.

occupations. Those still
and more of their time to

brake / must

credit,

con¬

have

for the purpose of fi¬
nancing the purchase and sale of

all others you have the

Consumer

a

of

emer7

Anyone who drives
relies'..on the emer¬

Some

volume

day than

time

advisable from the farms to other
occupations.
Now, there has been an extensive movement
farms

of

regulated

credit

economists

some

Federal

one

on

keen

.

development, of course, enhanced the need for a
rapid shift than otherwise would have been needed

people from the farms
on

as

paying this rate

•

or

trol,

quantitative

interest, insured by
." Com¬
petition for savings is keener to¬

produce

even

no¬

of

directions
to

funds,

commercial

are

back

than

more

the

country: "We

World

Temporary need for greatly enlarged production

greatly stimulated farm production. The aftermath was
not
essentially different this time either. Korea provided

again

mort¬

/savings and loan associations, and
they are advertising all over the

the

on

in

savings
banks on the other. The
savings
and
loan associations don't
play
such an important
role, because
they are overshadowed by the
huge savings banks.
Savings
states.

with

created

agency
found

outlet for

hand

one

banks

came

have

tween' the

All Over Again

Then

an

gov¬

for savings that is
taking place all
over
the
country.
Here in the
East there is keen
competition be¬

their

concerned.

are

banks

Look

The difference between
may

of

or

of the

tably savings deposits.

and

th'ey did — and then the situation at
began to grow rapidly worse.
Farmers were
being paid to continue to produce things no one

would pay a profitable
price for.
all this and what went before

a

the credit

on

gages a

was

write

is for all
riskless asset.

by the government, and therefore

as

bottom
soon

rests

ernment

ticket, and

own

to

Administration,

practical purposes

President

situation

become,

A

erans'

persuaded to promote legislation which laid
New

-passed became

little

that

have

mortgage insured by the
FHA, or that portion of a home
mortgage guaranteed by the Vet¬

came

point

mortgages

considerable extent, riskless as¬

sets.

through the 'Twenties and had any reason to know
was
going on our farms need not be reminded.

The crash of 1929

reserve,

an

or his hand brake
brake
isn't
working.

serve

irrespective of credit conditions.
'* /,
They have large lines of credit

in

was

credit be

consumer

through

York

will find many an account of
$10,000. Now, that is&'t

have occurred otherwise.
were

of the

power

lower

or

constantly increase reserve
requirements.
As you can see,
throughout 1955 and 1956, in spite

of credit

the

savings and loan associations,

accounts

number of products

can

Annuity,

of

which

.

unchanged because rais-v
'
ing the reserve requirements is a
economists, including1 drastic measure which gives the
I am saving, but it is a contrac¬
teachers of money and banking in economy a very severe jolt.
tual saving; and if I had a mort¬
some
of
our
best schools, have
Lowering of reserve require¬
gage on my home I am also savmaintained that the Federal Re¬ ments is bound to take
place in
ing in a negative wa,y. The direct serve doesnt need
the future when the Federal Re¬
any
power
savings of the nation, to a large other than
quantitative
power. serve makes available additional
extent, have become investments. Make
money tight enough and you reserves in order to make
possi¬
/Savings isn't any more what it, will also reduce the flow
a

.

buy

guarantees,

tion

raise

and

car

duce

family puts aside $2 every week
in order to have
something for a
rainy day. If you look over the

war

the

cannot

Obtain Desired Econonic Results?

decades been a favorite topic of politicians visiting
agricultural regions or hailing from those areas, reach
back into World War I
years.
It will be recalled that
the very high prices for farm
products, plus government

during those

influence

.

//";;///://iv/

to

gency •

Can the Federal Reserve Board

many

a

■;/

•

foot

than those which have for

stimulated output of

to

driver,

-

worse

made.

requirements, and that is

Continued from page 4

—

present "farm problem,"

the

Fed¬

gency power.

say
"farm

or

the

were

Well, first is the

a

to

The roots of the

banks

Board

Of course, if one wished to be exact he would have

it is different from

when

to

%ChangedK/

the facts.

are

and

Reserve Requirements Rarely

but

—

passed

amendments

with

Reserve

money market and business activ¬

telling the farmers in the
is large and
strategically

are

they

as

compared
Federal

;
Now,
in
view
of
all
these
changed conditions, what are the
powers at the disposal of the Re¬

Not much of it would be surmised from what

Stevenson's

these

Old, Old Question

never

late

was

as

the

eral Reserve Act

serve

basic situation

faced, but

today
when

major

I

discussing—the dif¬
conditions

those
Act

therefore—and

see

on

in

exist

or

is

go

ferences

not

This

can

could

nothing to remedy an economic situation
likely to yield to other than much more
rigorous measures. And, too, paying farmers to continue
to produce more than can be or will be consumed does
nothing to help.

—

27,1956*

5%, with the result that irre¬
spective of credit conditions, ir¬

their

to

As

occupations which

they can carry on in addition
regular or usual farm operations. All this, of
course, tends to bring relief in one measure or another.
But notwithstanding it the output of our farms is
by and
large still distressingly out of line with normal effective
demand.
And, of course, talking about "human needs"
in the abstract, and
comparison of them with existing
supplies of things to meet them may be a tempting oc¬
cupation for the ^academicians and the politicians, but

Continued from first page

Thursday, September

...

a

against savings deposits

are

the correct policy or mot.
I agree

President of the Federal
Bank
-

-

f

■

In fact,

with Mr. Sproul, a former

of: New
''

-

>

'

-

*

Reserve

York, r that .the
{

-

-

"

*

'

Volume l84^Ntfiriftier5572...The Commercial and Financial Chronicle

(1325)

bills-only policy is a mistaken the availability of bank credit in thing which I believe we, as stu- Continued
policy, but the Board adheres to it. order to help the business com- dents of the money market and
•
>
Y 1 \
munity., It
is a
psychological of business conditions, ought to
s

H

from

45

5

page

.

:-^Disoou»ts,:Moiiey €ost\

..factor;>;

Importance

.'

;„'v,

;.,.v

.■

! study carefully. \

,

We

of ;the discount rate,
the days of the gold
standard—in thedays lip to 1913—
a change in the discount rate was
of great importance, and it is not
surprising at all that many a college professor will write a book
on
money
and banking or on;
credit policy by merely collecting
footnotes from books that have

find, therefore, that in spite
Gf au these great changes thftt are
taking place in our economy, the
powers of the Reserve are about
the same that they were prior to
1913 if you eliminate the changes
jn
the
reserve
requirements
which, as I have indicated to you
before, are to be used and have
been
used
only rarely and as
emergency
measures.
The only
time a lowering will take place,

been

not

The

,

other

instrument

is

-

the

changing
Now, in

written

previous professors,
and those books were
written on footnotes that previous
professors had written, that
they come back to the idea that
the

by

discount rate is the most

emergency

measure,

ti-hV

.

T

Change.m T>ebt Lengthening
' I don't think that the last word
has been said on debt manage-

ment. Now, you and I know fully
well that when the present Administration came to power we
heard a great deal about the necessity of lengthening maturities,
^ety°u look at the short-term
obligations of the Treasury outstanding now and compare them
with what they were at the

is

end of . 1944, you find practi
c.ally no change and the quesdecreased in order to provide the tion
tbat arises, is, can the
banks with the additional reserves debt be lengthened? Closely conim-yto meet the secular growth of the nected with it is this question, to

jportant credit instrument.
of

an

as

v-

the Board reaches the con-

when

that

elusion

reserves

have

to

be

what extent has the decreased

country.

Now, in the first place, the cost
money today is not as impor-

This," briefly,

is

the

How does it affect us?

^ar^etability

situation.

liquidity

and

of

I believe it

been

as:

prevalent

in past shortage markets, this trade authority

as

reports.

...

With the nation's largest car maker headed into 1957 model
changeover the past week, United States automobile 'production
was scheduled for a 38%
decline, "Ward's Automotive Reports*"
stated on Friday last.,
/
Meantime, United States producers the past Friday built their
.

5,000,000th

car or truck of the year.

Chevrolet, which has accounted for more than 28 % of United
car output in 1956, began
gearing its plants'for forth com¬
ing models on Monday a week ago along with Cadillac Division.
States

Buick

Division

concluded its

:past week.
Both Oldsmobile

1956 model run on

Pontiac

it

as

If you are

before.

was

the treasurer of a corporation and

know that you have jto pay
income ^ to thP Fed¬
taxes
the

you
s™

52%
eral

Government,

to us, to the people in col-

is Up

leges and universities whose field
is money and banking, to raise
and study these questions.

if

the State

to

Questions to Answer

New York,

of

■

breadth,

/

„run*.

Now,

I
the

studied

remember,
textbooks

-

when

I

learned

I

that equity capital—common stock
—is the best form of capitalization
for

You pay a diviit. You haven't

corporation.

a

dend if you earn

anybody to come and sit on your
neck to pay interest. And yet you
talk to corporate executives and
ask them,
"Why don't you sell
stock?
Your stock is selling so
high."
And the financial VicePresident will tell you, "Well, tf
we
are going to
pay $4 in dividends we ought to earn at least
$9. On the other hand, if we borrow tnoney and if we pay S4
we
have to earn $4.
constant
and

people

have

in

paid

is

a

indebtedness,

whether

wonder

I

The result

increase

academic

enough

atten-

tion to the impact of the very high

corporate tax

on

the debt struc-

«

What I have in mind are tbese
questions:

;

.

V

a Board be given
to
regulate
consumer
credit?
This question will
be
discussed some time in October by
powers

a

of Discount
of viscount

Rate
Kate

Changing to discount rate is important. When the discount rate is
changed it is a signal to the community at large as to what the
po icy of the Reserve authorities
will be
Let me be specific. You
remember last April the Federal
Reserve

the

and

raised

the

discount

rate

had it that
there was some disagreement between the Treasury on the one
newspapers

in

resilience

and

thi<? havp

on

t

£

What

the

nhil

ion

lenginenea.

.

In a period of declining business activity the Treasury doesn t
want to compete with business,
and in a period of rising business
activity, •, particularly when .the
demand for. capital is very great,
corporations and other investors

^nt interested in government
J

g

,™et

it .

«?rpPniiv

as

academic

men

to

1W0 us' as academic men, to
y

Applicability

Rejects

of

Gold

to

.

Today
believe

we

ought to

fromlbe^foddle^Me^

KtSSSSS

As students of
banking I amj'quite
S
sure you might be interested
in t .. J?
t
.
jt
soeci«c as
obtaining copies of those studies.!
(2) Does the Board need powers
a
to regulate real estate credit, or, PO
f
d
etandini*' anrl fine
if the Board cooperates with the ^nntntinn who think-^that if we
home-financing agencies and with
to the gold standard all
the
Federal Kome
Loan^Board
ld
Does the
and
banks
this us
sufficient
oId standard fit in in a dynamic
Maybe Regulation X as it existed
o„Ph
nrP
living in nt
during the Korean War is not DLent? ;■ rffliid a f*old standard
needed, but it is a question that work in the
present economic and
should be carefully investigated
liti
l conSitionE? But just be-

from every angle.
money

and

ntmter S Ske ^rofes!

refurned

beecured.

est

cause in the
ard
worked

may nave a particular people worbs
interthat question, but by

in

on

wrjttf>n

like
you
and
me
who
have
nothing to sell. Would it be advisable to give the power to the
Board to regulate selectively real
estate credit?
,
? ,
(3)i This question hasn t been
raised before. Should the Board
have the power to regulate term
loans? We have seen in Canada
that the National Bank of Canada
has laid down rules under which
_

t the

goidJ

aUblhe

and

standgreat

central banking were
~

rIrT1P

whpn

the

sold

Sondard worked does i?
^Sn foiw itSavmean

:

h1

«A11

IXoks sty
who
j,

c?reat

and

therffore

we

befuddled

^ in with realities
" m
uu
'
.

*

raised

the

States

or

not.

authorities will continue to

press

on

credit.

the availability of bank
again, a iew weeks

-Then

ago, the discount rate was raised
to 3%, it was a confirmation that

this

policy will continue./ If, let
business activity should
show some sighs of weakness and
us

say,

the discount rate is lowered from

3%

to

2%%, the significant part

will be not that the discount rate
has gone down by one-quarter of

1% but rather it will be notice to
the

community at large that the

Federal

Reserve

is

of the
fact that business activity is softening and that it will do what is.
ay/are

within-its power to keep business

provide the necesreserves, thereby increasing

healthy
sary

and




companies, of pension funds, and
other
eleemosynary
institutions
have on the economy of the country. The resources at the disposal
of these institutions are tremendous and they will grow in irnportance and the question that
arises is:
(1) How far-reaching are their

How do they influence
the economy of the country?
In
the interest of the country should
they operate as they have in the
past,
or
should
they be subjected to certain controls,
One
may argue that all these institutions do not create deposits, they
merely administer the savings,

1956

1957

.

.

model

building last week.
all of its assembly plants scheduling
Saturday work for the seccond straight week, aimed at an output
of 17,000 cars, with
.Lincoln edging close to the 1,000-unit mark.
American Motors programmed 2,550 new automobiles the past
week, while Studebaker, which just started up last Thursday,
anticipated a 230-car total.
r

Division,

None

of

the

with

Chrysler

Corp. divisions scheduled production
pilot models off the lines,
week of changeover on.

the past week, but all ran a few 1957
however.
Mercury began its second

Friday
V

*\

last.

Business

level

for

were

24%

t

failures

in

month

of

the

August rose 8% to 1,101, the highest
August, since prewar 1940. Casualties:

higher than

The rate

a year ago.
failure for each 10,000

of

enterprises listed in the

Dun & Bradstreet Reference Book

rose to 52, and noticeably ex¬
August last year. However, it remained well
below the 71 of the comparable 1940 period.

ceeded

the

The

.

to

42

of

liabilities

of

$55,000,000,

those of

as

a

year

the July*

August failures rose 13% above
and were more than half again

as

large

ago.

Casualties of all sizes

were

more numerous

than in

July,

ex¬

cept for those in »the $25,000-$100,000 group. Small failures, in¬
volving less than $5,000, were at the highest level so far in the
postwar period.
A record number of casualties was reported
among

large businesses, involving losses of

than

more

$100,000.

Three-fifths of the August failures occurred among concerns
in the first five years of operations. One-fifth of them were started
in

^

1955.
While

?

:

casualties

;

r,

wholesalers were 8% below the
August 1955 level, year-to-year increases were recorded in all
other major industry groups.
The sharpest rise from a year ago
occurred in commercial service, where the toll rose 61%.
Six of the nine major regions reported more failure^ in.
August than July.
In the West South Central States failures
were
the heaviest since August, 19491
Declihes were' reported
in
the New England, West North Central and Pacific States.
Casualties exceeded those of a year ago in all regions except
New England.
/'
among

,

new business incorporations during the
1.5% fewer than the July figure of 11,513,
according to Dun & Bradstreet, Inc. Although" the August count
was the smallest since last December, it represented the highest
August total on record, and a gain of 3.2% above the 10,983 cor¬
porate formations listed in August, 1955.

Numbering

11,399,

month of August were

'

businesses

New

organized

during the first eight months of

1956, totaling 99,109, remained at an all-time high for the period^
Compared with 96 9.33 last vear, there was a rise of 3.0%, while
the gain over the 76,340 recorded in the comparable 1954 period,
29.8%.

was

T-

PrincJPal instruments at the

Steel Production Set This Week at 100.2% of Ingot

d]ltl°ns mat prevail today, tne
Board has adequate powers to
achieve the desired rcsults and if
'
wliat powers snouid^ n; pe
This is, a problem wnicn
belongs to the universities. It we
lay down a sou"d tP^ory'^^" !;
am <*mte s"re
.

soun° practice will be followed.

big factor in making the fourth quarter the largest in
the country's history is the pickup in the automotive industry,<lSteel" magazine reports this week*
Gross national product is
expected to hit a new high annual rate of $412,000,000,000 for the
next

H. L. Emerson Adds
(Special to The Financial Chronicle)

a

rated, Union Commerce Building,

and that the rate of interest will

members of the Midwest Stock
Exchange. In the past he was with

do the regulating, but it is some-

Beadling & Co. in Youngstown.

months.

the past nine

months, the automotive industry has been

big disappointment, but from now on, there will be no
assembly lines, states this trade weekly.

holding

back of Detroit's

Fourth-quarter scheduling of 1,700,000 passenger cars

exclu¬

assembly lines should bring 1956 production
and 6,000,000 cars. Production through Sep¬
just above 4,200,000. Last year's total was 7,942,132.

sive of jeeps on the

to between 5,800,000
tember is

Heavier vehicles also look for a brisk

fourth quarjter.

Truck

production totaling about 840,000 so far, is programmed at 250,000
units for the last quarter. This will bring 1956 output just over

1,000,000 vehicles, or , 12% under the level
Auto plants are
the

of 1955.

beginning to make their steel w,ants kpown,
Those which have contacted one major steel

magazine said,
producer have asked

for 70% of the tonnage allotted, to them,
The December take should be even
larger. By then, big pre-strike inventories will be reduced and
automakers will have a better idea of the acceptance of the 1957
November

delivery.

autos.

working authority said that customers are beating
for deliveries on structurals, plates, seam¬
less tubular goods and hot-rolled sheets, but demand for other
products is less urgent.
It pointed out that the heavy and hot-rolled products are.
'

CLEVELAND, Ohio —John C.
Wick has been added to the staff
of H. L. Emerson & Co. Incorpo-

three

For

for

powers?

Capacity

iX
A

discount

serve

build

..

disposal of the government to mrate to 2%%, it gave notice to the
Impact of Institutional Savers
fluence business activity are
community at large, and particuAnother question that I believe monetary and fiscal in character,
larly to the banks, that the credit we ought to examine very care- and the question that 1 nave tried
policy will continue to be one of fully is what impact do the in- to raise is whether, in view of the
active restraint and that the Re- vestment policies of life insurance changed economic and social con¬
Reserve

eral

in

Ford

to

deny it?" And I
thinking beit is thinking that does not

are

this

cause

so

T° sHm up' therefore, jve are
llvmS in an age where the govhand and the Board on the other the banks could make term loans ernment «olds itself responsible
whether the discount rate should and I believe it is up to us to an- to maintain the economy sound
be raised or not, and the question alyze rather carefully what the fJJ1" growing.
We have given up
that arose was, why should there experience of Canada will be and the idea of controlling the econbe a disagreement over one-quar- whether or not their experience
directly tnrougn price conter of 1%?
The answer is simply can
be
applied
to the
United Jjols, wage controls and others,
this, that in April when the Fed-

immersed

-

Finally, I

to

trucks in the week preceding.
:
"
J
"Ward's" added that Ford and Lincoln Divisions of Ford
Motor Co.,
American Motors and Studebaker Division were'

level

'

continue

through the current week. They are the only companies
in the industry still assembling 1956 models.
"Ward's';' estimated the last week's production at 40,086
cars
and 15,082 trucks compared with. 64,350 ears and
20,076

.

f

panel conducted b,y the National

,

Psvchologv
rsycnoiogy

width

lmnar+ will

Bureau
of
Economic Research,
which will analyze this question

ture^and what the consequences not the the home builders and nol
by mortgage lender because
by

could be.

learned

which were ascribed to it.

'

Should

(1)

have

in

begin to figure out that
First, what powers should a
payment of interest in tax-de- Board have under present condiductible, you say, "Money doesn't tions to fulfill the functions imcost me hardly anything at all." posed on it by the Employment
In fact, these very high corporate Act of 1946?
Should the Board
rates are, at least in part, respon- have powers only to influence the
sible for a very sharp increase of availability and cost of credit or
indebtedness* because under pres- should the Board have also qualent
conditions
it
certainly
is itative powers to influence indicheaper to ♦ finance the capital vidual segments of the economy
needs of a
corporation through of the country without influencbonds than it is through stocks. /
ing the entire economy as a whole,
you

sale?

^^Pg^er^nfS
does^nS have S

income

some

-

taxes

their

will

models

.

tant

Wednesday the

V.
and

The metal

at steel company doors

Continued

on

page

46

46

(1326)

The Commercial <BES Financial Chronicle...

Continued

from

45

Grain
with

page

markets were nervous' and
irregular the past week
early weakness reflecting the tense situation ih the Middle

East

and

,

The State of Trade and

Industry

ernment

stronger demand than the light and cold-finished forms. This
is caused by brisk activity in
heavy construction, freight cars and
machinery. '

Vs•'"'v*

demand

in

the

week

operating at 100% of capacity

ended

Sept.

23

mills

or

Iron

American

and

Strength in

Steel

capacity for the week beginning Sept. 24, 1956, equivalent to
tons of ingot and steel for castings as compared with

'

r

The industry's ingot production rate for the weeks in
based on annual capacity of

-

128,363,090 tons

For the like week

duction 2,389,000

a

tons.

month ago the rate

A

year

of Jan.

as

1,

is

:

pro¬

of Jan.

1, 1955.

-

Roasters

1956,

1954.

according to the Edison Electric Institute.

Preceding Holiday Week

Car

as

net

last

was

'

r*sr;-lr

irregular and held

in,-a

some

'

-

support based
assume

on

'

of

importance

as

\

v

class

trading

-

:

of

and

new

used

cars

and

rose

;

reported

September

Dun

&

weeks, the toll
week

a

year

20

failures

from

203

increased
in

the

to

262

:

in

preceding

the

week,

Bradstreet, Inc. At the highest level in five
considerably above the 171 in the comparable

was

ago

and the 212 in

1954.

the prewar level of 239 in
1939.
Most of the rise occurred

Failures exceeded by 10% '

among failures with liabilities of
climbing to 228 from 175 last week and 141 a
Small casualties with liabilities under
$5,000 edged to
34 from 28 in the
previous week and 30 in the similar week of
1955. Twenty-two of the
failing businesses had liabilities in excess
of $100,000 as
compared with 14 a week ago.

$5,000

year

or

more,

ago.

Wholesale Food Price Index Held to

a

Continuing to

move

in

-

a

narrow
range, the wholesale food:
price index, compiled by Dun &
Bradstreet, Inc., fell slightly to
$6.06 on Sept. 18, from $6.07 a week
earlier. The

current

compares

with

$6.25

on

the

corresponding

date

a

year

level,

ago,

or

drop of 3.0%.
Commodities advancing, in
price the past week were
wheat,
rye, barley, lard, butter,
coffee, eggs and hogs. Lower in whole¬
sale cost were
flour, corn, oats, hams, bellies, sugar,
cocoa,
a

steers,

and lambs.

The

index

represents the sum total of the
price per pound
of 31 raw foodstuffs and
meats
in general use and its chief
function is to show the
general trend of food price at the whole¬
sale level.

;•

Wholesale

The

Commodity Price

Index Exceeded the Previous
Week's High Level

daily

wholesale

commodity

price

index, compiled by
Dun &
Bradstreet, Inc., continued to move'
higher last week,
rising above the 300.00-mark for the first
time since
mid-April
1952.
The index
closed

with 298.89

a

at

299.28

on

Sept.

week earlier and with
277.95

date last year.




18, which

on

the

•: ,v

compared

corresponding

James

of

the

W.

Fuller.

outstanding

stock.

Tne

own

over

common

//////v *4

Allentown Portland Cement Co.*
which with its predecessor dates
.

back to

1906, has two plants, one
and tie other

Evansville, Pa.,
West

Conshohocken, Pa., with
capacity of ap¬
4,500,000 barrels.
year
1955 totaled

proximately

the

for

were

close

Sponsors / J
Trade Club Meeting

,

.

to

the

cor-

OAKLAND, Calif.—The month¬
ly Trade Club meeting
of the

„

.

dollar

volume

of

was

retail
1

trade

to 5%

varied

from

the

in the period ended
higher than a year ago/

Oakland/Chamber

While

the

call

for

women's

Fall

coats,

wide -.investment

/</•/;

Letter

dresses

children's

and

Commerce

of

will,, be sponsored by Harris, Upham & Co., 416-15th St., nation-f

Bradstreet, Inc.'Regional esti-i
comparable 1955 levels by the following '

brokerage

firm

with 35 offices coast to coast and
members of the New York Stock

Exchange,

Wednesday, Sept:
the Colombo Club;

on
26 at 6 p.m., in

.

back-to-

according to

an announcement

by

Ferdinand W. Strong, Harris, Upclothing slackened slightly. An upsurge in the
buying of
ham Oakland manager.
millinery, handbags and shoes occurred. Although total
: Mr^. Strong, in announcing the
volume in men's apparel was
slightly below that of a year ago, ,
haberdashers reported gains in
U p h a m
participation*
hats, dress shirts and sportswear.*- Harris,
..

stated that "we

/

Despite increased sales promotions in many
lines, the buying—
furnishings was below the level of the similar week last

of home

'

year.

sponsor

are very happy to
this meeting of the Trade

Club and look forward to this op¬

portunity
of
furthering
Harris,
was a decline in
Upham's national effort in the;
purchases of automatic'laundry equip¬
field of investment education."
ment, refrigerators and television sets. Sales of
;
lamps and light- *
ing fixtures were close to those of the previous* week. While
f\ The Harris, Upham manager
There

the call for linens and floor
coverings expanded,
volume in curtains and blankets decreased.

There
and

was

moderate decline

a

poultry the past week, but

meat

and

a

appreciably,
'

-

congratulated the Oakland Cham¬
ber of Commerce

tion

in

the

buying of cheese,

eggs

slight rise i«= the call for fresh

butter occurred.

Volume in sugar and flour continued
While purchasers of fresh fruit and
vegetables were
teduced,-interest in canned goods-and frozen foods

to decrease.

of

the

for its

Trade

month, conducts

ings

of

business

Oakland

area.

origina-;

Club

each

which,

group meet¬

in

concerns

r

•

the

|

4
V;v'.'■
"
Salomon Bros, to Admit |'
Buying activity in the major wholesale centers rose notice¬
Salomon
Bros.
&, Hutzler, 60
ably last week; retailers sought fill-in merchandise'for
depleted" ; Wall
Street,
New
York
Citv,
stocks of Fall apparel and home
furnishings. Wholesale inventories
members of the New York Stock
in some
lines

was

;

*

the

limited.

were

In

-

The dollar volume of wholesale orders

moderately higher than the corresponding4" 1955 level.
Department store sales on a country-wide basis as taken from
Federal Reserve

1956, increased 4%
the

Board's index for the week encied
Sept.
those of the like period of last

above

Exchange
Clement

Retail sales volume in New York
to

12%

measure

to

over

City the past week advanced

the comparable period

cooler

weather.

a

year

ago,

due

in

large *

Leo

become
Tsolainos

1955.

above that of the corresponding
period

in

to

admit

partner¬

will

retire

from

Sept. 30.; /

partner

a

&

in

Clift will

Theodore

Co., 1 Wall St., New

City, members of the New

N. B.

In

15, 1956 the index

rise of 4%

will

4

Oct. 4 William B.

York Stock

year.

a

Shaw

on

Reserve Board's

the preceding week, Sept. 8, 1956 a decline of
3% was recorded.
For the four weeks
ending Sept. 15, 1956, an increase of 2% was
registered. For the period Jan. 1, 1956 to Sept.

Oct.

Gaertner

Tsolairos Partner
On

fhdex,' department
store sales in New York
City for the weekly period ended Sept. 15,
1956, increased 4% above those of the like period last

recorded

G.

the firm

York

>'

According to the Federal

on

J.

ship.

15,

year...

preceding week, Sept. 3, 1956, a like^increase was re¬
ported. For the four weeks ended Sept.
15, 1956, an. increase of
4% was recorded. For the period Jan.
1, 1956 to Sept. 15, 1956 a
gain of 4% was registered above that of 1955.«;-^'
10

4

from

and

Fullers will continue to

70%

Sales

considerably
expanded substantially.

Narrow Range the

Past Week/

purchased

stockholders, C. Thomas Ful¬

ler

school

y.

industrial

like number of shares

stock

B

women's

*

and

a

class

at

^WgK7 Level the

sportswear expanded last week; purchases of
.

Business Failures Increased in the Latest Week
Commercial

L\: •;
• ■ •'•/
being offered do not
financing by the
company. They are being acquired
by the underwriters through con¬
new

aggregate annual
a

,.///:•>

•Canadian output last week was
placed at 1,210 cars and 1,511
In the previous week
Dominion plants built 713 cars and-;
1,599 trucks and for the comparable 1955 week
3,929 cars and
680 trucks.
'

stock../ r.,;-;/.

at

percentages: New England —4 to 0; East and Southwest 0 to
+4; "
/ South +3 to -f-7; Middle West 4*4 to 4-8; Northwest —1 to 4-3
/', and Pacific Coast 4-1 to 4-5.y//y yy/..

trucks.

,

total

v

.

A

;

'

Wednesday of last week

mates

,

1956, to stockholders of
22, 1956, and expects
dividends quarterly on the

The shares

of

/•;/

according to estimates by Dun

:*•"/••/ /,///,,

ended

The

on

Last week the agency reported there were
15,082 trucks made
in the United States. This
compared with 20,076 in the previous
week and 24,086 a year
ago.

week

:;

car

;

share oh

a

Oct.

represent

market

-AfT

responding 1955 level.

•

B

stock payable

common

version of

con-

the

on

has declared

31,

to pay

;

declared

dividend of 28 cents

the class A
Oct.

continue in good vol¬

i

c

'

output fell below that of the previous week
by 24,264 cars, while ; truck output
declined/by 4,991 vehicles
during, the week. Iji the corresponding week last year
123,109 cars
and 24,086 trucks were assembled. ' '

without such divi¬

The company

record

'

Last week's

of

$12,969,370.
Consumer buying continued at a high level last week/ and
was
slightly above that of a year ago. Retailensaieported increased S
buying of Fall apparel, linens and gifts, while volume in tood
Harris, Upham
products, television sets and major appliances fell somewhat.
Sales

55,168
units, or a decrease of 29,258 units below the
preceding week's
output, states "Ward's."
'
'''

classes

two

^Past;Week
/

or

being

a

-

the belief that the soil bank

greater

Both

stock.

w*

Retail Trade Volume Continued at

•

v
;V;
Last week the industry assembled an
estimated 40,086 cars,
compared with 64,350 (revised) in the previous week.
.The past
week's production total of cars and
trucks amounted to

>

voting rights and
except
that
cash
bci declared on the

dends

-

new

'

dividends may

;

narrow

identical

A stock with

231,743 bags.
reflecting lagging
irregularly during tne

slow.

was

stock.

common

are

they totalled

year

of cotton into the Government loan stock

1957 models.

-

.

stock have equal

irregularly
771,000 tons,

cocoa was

changes small in the absencerofrany

.

of

'

;

-

.

,

|

Makers Turn to 1957 Models

,

on : Sept. 24/aptproved a reclassification of the
company's stcck as a -result of

Consumption of cotton in the four-week August
period, ac¬
cording to the Census Bureau was estimated at 686,275
bales, or considerably less than trade expectations. The daily average rate
of consumption for the
August period was 34,313 bales, as com-/
pared with 27,476 bales for the July period argLan
average rate *
of 35,856 bales for the
corresponding period a^year ago. Entries /

Car output for the latest week ended
Sept. 21, 1956, according
to "Ward's Automotive
Reports," declined 38% from that of the
preceding week as car manufactures turned to the construction

;

time

'

were

influences.

ume.

Output Declines 38% the Past Week

prices

with

There

»«

-

this

and loan programs would
factors in the future.

increase of 3,432 cars or 0.4% above the
corresponding
.1955 week and an increase of
109,438 cars, or 15.4% above the cor¬
responding week in 1954.
v',
;
1

U. S, Car

At

Export trade in lard

range

an

/

priced

was

share.-

f Stockholders

407,807

; structive

Loadings of revenue freight for the week ended Sept 15, 1956
increased 141,055 cars or 20.8% above the
preceding holiday week,
the Association of American Railroads
reports.
J
Loadings for the week ended Sept. 15, 1956, totaled 820,666;
"cars,

at $26.50 per

A

■

raw

Cotton

Car Loadings in Week Ended Sept.
15, Advanced 20.8%
Above the

made

was

Loeb & Co.- The stock

sugar prices were slightly easier
interest.
Lard prices fluctuated

refiner
week.

.

:

stock of Allen-

yesterday (Sept. 26) by an underr
writing group headed by Kuhn,

y

were

ago.

Domestic

''V

common

Portland Cement

\v:r

World consumption of

week

a

week's

;

town

Daily average sales totalled 44,700,000
40,000,000 the - previous^ week and the

cocoa

output rose 143,000,000 kwh. above that of the
previous week; it increased 726,000,000 kwh. or 6.7% above the
comparable 1955 week and 2,410,000 kwh. over the like week
in

Public offering of 209,000 shares
of class A

rye

estimated at
compared with 702,000 tons last year.
Warehouse stocks
showed a substantial decline to 388,937
Ibags from

as

Sept. 15,

Portland Cement Slock

^

last -year.
for hard

:

high

new

'

With 'most

lower.

The amount of electric energy distributed
by the electric light
and power industry for the week ended
Saturday, Sept. 22, 1956,
was estimated at
11,482,000,000 kwh., an increase above the week

This

Offers Allentown

part

actively in the market for afloats and particu¬
larly for coffee in nearby arrival position.
'
\
Trading in cocoa was inactive with prices joying

'

Electric Output Climbed Higher the Past Week

ended

Kulin, Loeb Group

Gov-;

latter

Coffee prices continued to rise as the
threat of-a water-front
strike on Sept. 30 overhung the market. ' '

placed at 2,341,000 tons or 97.0%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based on annual capacity of 125,as

the

advancing to

rye

-

to the Americas were
reported.

production

was

828,310 tons

in

which the outstanding stock don^
wheat bakery flours continued small last
listed of 1,156,750 class B common
buyers amply covered; interest* was confined /
shares. The class 'B stock is conr-x
to purchases
by bakers a*d jobbers in need of e'arfy replacements.
vertible share for share into class
Shipping directions on most flours were fair. Sbme export sales
Demand

week;

1956.

97.0% and

was

the actual weekly

ago

1956

week

same

'l:>~ '■

■vv*

week ago.,

a

with wheat and

Trade expanded last week.
bushels as against about

"2,466,000

*100.6% of capacity, and 2,477,000 tons (revised)

the September

largely reflected the relatively small crops
in prospect in both this
country and Canada. rC6rn marketings
continued-below the-demand and prices
held/up 'fairly well.
Trading in grain and soybean futures on' the Chicago Board of

Institute announced that the
operating rate of steel companies having 96.1% of the steelmaking
capacity for the. entire industry will be at an average of 100.2%
of

in

reversed

was

>•'

■/•//. ."!'/■;■*

The

estimates revealed

report.-The trend

.

2,461,893 net tons, a decrease
,of one-half point from the previous week, "Steel" magazine con> eluded.
'.{• '■ '
;

bearish

The rise in wheat was sparked
by a sharp expansion in export
trade for the first time since
export business was returned to the
private trade Sept. 4. Substantial sales were
reported to Greece,
Great Britain, and Portugal.
:vvr
■;

\

kept

the
crop

of the week,
however,
levels for the season. •

in

Over-all

Thursday, September 27,1956

Exchange.

Libbey Opens

(Special to The Financial Chronicle)

B.

WHITTIER, Calif. — Nathaniel:
Libbey is conducting a securi¬

ties business
South

from

Enramada

offices

Avenue.

at

8781
*

-

.

\.v

"b.Vv.

■

Volume 184

Number 5572

..The Commercial and Financial Chronicle

.

(1327)
Continued from first page
n

>**->;

4.-1.

'

...

.

matched by taxes. The resulting
Government debt, whether pur-

....

.

•

ys

...

,

,»

....

.

'

.

.

money

On the Business Outlook
,

be

can

indicator

which

physical

w

found

of

seg-

shown little hesitation in raising

ating

Of activity. The FRB -index
Industrial * Production,. which
includes the output of our mines

prices.

>

/
L

i

of?

factories, averaged 142 in the

first

months of 1956 before the

six

fhiM!rp«,Hwi.chTHmmed
strike.
This

the.a steel

'

; was

one

point lower than the average for
the fourth quarter of last
year, v

Non-Federal
-

;

.

A.

*

.

DeficiJ/Spending to
JBl™me

♦. '/ ; t
-The current threat to the value
.

.

the .fiscal

tteG^S0
.the Govern-

policy t of

debt

ments

ment.;; Federal expenditures have
been relatively stable for .the past

being paid down

was

f

Within

V

^

backlog of demand for investment goods and consumer

durables.

;

-

-

totals, certain lines
witnessed
sharp
declines,
Cutbacks in motor vehicles and

farm erminmonf have hrm wicoiv
equipment havp been wisely

publicized, and unemployment

in

1956.. Rather,

it -is

non-Federal

/Jmying financed,
c1^

spending

m part, by'.dfefiwhich has pushed

:

aggregate demand bevond the lim-

aggregate demand beyond the limIts of physical capacity. In 1955,

/■

the case, of the business sector,
those holding the assets are not
identical with those owing debt,

in

But the figures give an idea of the
reduced liquidity of the consumer

sector.

Another comparison shows

that between 1950

and

1955

dis-

From 1945 to date, business has Posable income rose by almost
spent about $250 billion on new one-third but consumer credit inpiant and equipment.

More than

ceased 75% and personal mort-

ddubled-

ho.mes bav\bce»

bmlt.

Consumers have purchased

about

50 million

new

cars

and

multitude of other durables.

jjc

Qf

pub-

while
raising
their
the quality and quantity

pn

community facilities approprif

»

ate to the "new era.'

:

case

f

ye+r,K-i —rm inj +h^fCHm?pin^^epn^

K

seems to be
stabilizing and that development was triggered
likely .to improve in 1956, but by the outbreak of hostilities
^

"

well

remams

years.

-

below

earlier

;

•These

soft

spots

were

foreseen

widely at the beginning of the
year. Partly for this reason, slideoffs-

did

not

send

sympathetic

reverberations

through other sectors of activity. More
important,
the steel, non-ferrous
metals, glass
and cement not used

by producers

*

of

autos,

homes

farm

t

and

badly in the
lines—industrial equip-

booming
m en

machinery,

needed

were

and

uses.

manpower,

given

izing heavily in the "*• depressed
lines, has been sweating out a peof,

underemployment.

None-

theless, 1956 is providing the first
example of the "rolling re-

solid

adjustment" concept which entered the jargon of business forecasting a few years ago. Weakin certain sectors have been

nesses

thanoffset;

more

by
strength
elsewhere so that the aggregates,
in. dollar volume at
least, have
.

continued to rise.

In

any

of

sures

demand

overall

induce

2%

i

July,

w

t

3%

and

Rise

the

;

;

prices

consumer

above

1955

in

-

•

■

as

upswing

general
prices.

•.../price Level
In

strong

so

a

the level of

pres-

available

upon

have been

resources

to

>

the

case,

month

same

higher.
a

stability

-

prices
These' indexes

in

were

had

remarkable degree

between

/

were

wholesale

exhibited

mid-1952

of

and

mid-1955.
>

Perhan<?
of

ure

i<?

a

the

in

the

Product accounts
.rroauci accoun s.

ing

mpa«

IpvpI'"'

nrice

imnlieif

for^

calculated

tors

aripnuatp

morp

"general

available

the

defln

National

Bv this reckon
ny tnis reckon-

price inflation has been

some

present
throughout the postwar
period—even in the so-called "re¬
cession"

of

years

1949

and

1954.

In

1955, the deflators averaged
higher than in 1952, a gain of
about 1% per year during the in3%

terval.

Between

of

*

1955

and

1956

preliminary evidence suggests a
doubling of this rate of increase,

is

.Business

to overstate the importance of the psychology of decision

Liquidity

Debt

easy

in

makers

determining the
w

..

Nevertheless, it
is apparent that the cumulative
experience of the postwar years

has

served

insulate

to

economic

from

the

bodv

shock

and

strengthen confidence in continuous prosperity.
In 1946, 1949, 1954
end again in 1956 the economy has
demonstrated'a

resistance

to

commodity and service categories have participated in the
price uptrend. Farm prices which
had

tended

industrial

to

offset

increases

ably

have

been

above

last

mid-

running appreci-

The

Ratio

year.

However,

costs of labor and materials. There
appears

to

to be less

concern

on

the

.

decrease

..

portion
since

been

that

the

bolder

levels lower than those

de-

obligations; :are

ings

double

the

has

then

dropped
and

each

reached
'

year

9.5%

w.^ the commercial banks

pro-

vides additional evidence of the
liquidity pressures on insurance
companies today.

in

The

story is much the same for
savings and loan associations. The
ratio of cash and Governments to

assets

hold-

end

fell

of

from

1945

one-third

less

to

at

the

"than 12%

now

pre-

Qn

the

rQad

ahead

porate treasurers because of recent
price declines in Government securities. In much of the postwar
period, the steady drop from use-

illustrated

by the tax

..

to

caoitalize

future

earn-

billing: to.capitalize'future earn
an.° "istaiment aeDt.

ottier

n

on tne

Sld^ ot the ledger,^lenders
gradually
^bstituted more

lll?eral rules of thumb for deter-,

s?te proportion of risk

mlnJnS

assets in tneir portfolios.
The
and

to

willingness
stretch

repayment

is

out

to

„oc,

the

debt

period

intimately

tied

of

loans

'

institutions in the liquid asset positions of individuals should, be

banks

stood

at

47%

June

on

30

compared to 31% in mid-1950, and
18% at the end of the

war.

^Competition for a limited sunpiy
of
fdnds
between
general
categories of use and between in-

economy

the
the

use

and

of

in

cash.

situation

game

of

economizing 011
But beyond this

must

musical

resemble

chairs.

a

Some

would-be borrowers are forced to
defer

$22 bilUon> almost half again

m«ch

as the contra-seasonal
-n the firgt haJf Qf 1955

as

rise

For the first time since the
1920's the financial officer in businegg hag regumed bis piace on the
t

more-or-less, continuous dein liquidity of the private
economy^ which has been under
cline

since the end of World War

During the conflict only half
of the Government's outlays were

management team.

The

ques-

ing from" is once again relevant
and is all important in some cases,
,

Consumers, Farmers and State
Government Liquidity
Developments among consumers,
judging from such data as are
available, have paralleled those of

private

their

needs.

This

must

the case if price inflation

sen

business.

In

1945

liquid

eettinf?

this

of

and

thin**

threat

1956

imnart

an

to

is

the

but

the

certain

to

hn«na««

on

plans

consumer

The necessity of closer calcula

ti

™of cash^
n

will hi ree"

budgets

1 J??'

wth*

thinness of the 1956 equity cushion
has brought home to many the
seriousness of a miscalculation on

Dollar

vJ-■'

It

in'1957

safe "to say that

seems

spotlight will

be

focused

on

?.he monetarysavars- investo<;s, a"d
"ati°n's system more
its

sharply

than

hpforp

pver

than

the

Onrrpnt pvirlpnpo

economy

support

can

outiay has brought about

is

Wi
TJoiiiditv

Pressures

and

Near

Liquidity^tPressures^and wea

In

nesses.

the

The trend and pitch of feeling

months ahead, ef-

ration, if not, in fact, at rebuilding
liquidity positions,
The

commercial

banks

and

the

other financial intermediaries

are

|n much the
pushed

position, having
liquidity near the

same

their

^mit
Thus throughout the entire
private sector we cannot look to
further

decreases in liquidity to
supplement the flow of savings as
it has in 1956.
In fact, the trend
may be reversed

Now that' individuals, businesses,
banks and other fi¬

commercial
nancial

their

institutions have

own

resources

strained

to the maxi-

...

,

.

attention
attention may be increasmay,
in.crefs"
ingly directed toward the lender
mum,
Pu.m'

ingly directed toward the lender

ot last resort—the Federal Reserve

System. The powers of the monel?ry authorities to keep an ellecblve rein upon the expansionary
f°rces within the economy doubtJess have been enhanced by recent
"QVldlty oranges. Still monetary
p?,llcy. works more smoothly, and
effectively when borrowers and
lenders recognize the symptoms of
inflation and are prepared to share
the responsibility tor remedial
At the moment it is too
early to know whether conscious-

measures.

01 this responsibility, an mtuitive desire for liquidity, or more
aggressive action by the monetary

authorities v/in piay tne major
^ Q
0 coming months.
c
role in the

Halsey, Stuart Group
Offers G. & 0. Ry. Gffs.
Halsey, Stuart & Co. Inc. and
are
offering $9,000,000

associates

of Chesapeake & Ohio Rv..3%%
serial equipment trust certificates,

maturing
to

annually Oct.

The certificates,
of

23,

1957

1971, inclusive.

an

issue

first instalment

aggregating

$21,000,-

priced to yield from 3.70%
to 3.875%, according to maturity.
to 3.«'/07o, according to maiuruy.
are

Isguance and saie of the certificates

.

con-

forts will undoubtedly be directed
at preventing any further deterio-

be

to be

a

giderable deterioration in liquidity
position of consumers and busi-

000,

at

rose.'by

icyuuuig

to

the

way

wceiv^

of

0

tion of "where is the money com-

^

incur

vears

to

is too earlv to iudeo

experience
have

ten

by over 50%. The greater relative
importance of the shares of these

sitth

willing

not as pressing

few

psychology of the future

,

.

It

seriousness

billion and June saw another
jump of $1.1 billion.
Business
firms, more and more, have had dividual borrowers has seldom
to overcome a long-standing re- been so intense as during the curluctance to incur debt. In some rent year. Strides have been made
cases, strong,: well-known firms in fully utilizing the possibilities
have had to arrange last minute of shifting funds about the private

-

.

done

of liquid

securities

.financing after a belated recognion.
tion that retained profits and deThe McGraw-Hill organization
Preciation money, together with a
has accumulated evidence on the
dip into the till, would not pay the
pronounced
trend
toward
long tab for current expansion prorange planning for future exoangrams.
sion by business firms.
Business
In the first naif of 1956, security
firms
and
municipalities , have
.
overcome long standing prejudices
ulnn
nne
icLuiu^um^u-vn^Au,
against debt to finance expansion record ^4-9 billion — one-sixth
greater than dunng the same peor
to provide desired public imhind

II.

pro-

purchase

assets.
Moreover, years later. Moreover, during 1955
portfolio of today -alone advances outstanding from
is less liquid in the minds of cor- the Home Loan banks increased
the

spirits' matically

vailing.,, Increasingly, d e c i s i 0 n
makers in business firms, financial institutions, state and local
governments and households have
shown a willingness to "stick their
necks out," rather than be left be-

with the deterrent effect of

higher

the

at
the end of last year. The expanded

....

reaped the greatest benefits ~borrowing which occurred in
in the form of profits or the ac- March and June of this year.
In
quisition of capital assets at price March, business loans rose by $1.5

part of those responsible for "administered prices" than formerly

Digitizedprices upon demand. Even
for FRASER


below

practice of warehousing mortgages

Problem

_

have

at the

moment, price news is being made by the increases posted
by. producers plagued by rising

th\s meant disposing of

securities

.

goods in the wholesale

price index from mid-1952 to
1953

in

to meet private credit

pressing influence which' has .lessly high levels of liquidity was pointed out in his connection. in
steadily assuaged lingering fears painless and voluntary. But more 1945, these shares amounted to 5%
that * we
have
been
enjoying a r e c e ri t l y, 1 accompanying
the of all personal holdings of liquid
"false prosperity." A lonely voice change in businesses' long-run exassets, which also include cash
still refers to the present structure
pectations about economic stabil- bank deposits, and Government
as
"a house of cards," but there
ity, changes in tax payment re- securities. 'That ratio was 16% at
are few
sympathetic hearers.
quirements, working off of amor- the end of last year.
»
tization
allowances
and
higher
Commercial
banks
liquidated
* W
"New Era"^ of Optimists
working capital requirements, $7.4 billion of Governments last
The "new era" philosophy has liquidity has suddenly become a year in order to
provide for loan
been slow to catch on. Too manytnumber one problem. The extent
expansion, and many individual
people
remembered
the ; false of this "dehydration" of business banks have denuded themselves of
hopes voiced a generation ago. in the face of expanding invest- short-term Treasuries. The ratio
But the experience of recent vears
ment and rising prices was dra- 0f loans to deposits at member
has

is

$^

most potent stabilizers in
early postwar period.
^

Business

all

w

,

also have

even y^en

our

the

occur

human

ternatives in communities special-

nod

&5S

in 1955?
It

it

demand during the past decade, without threatening the stabilitv
Holdings of Governments have
been reduced virtually every year especially,
financing this rate of

cash

porations possessed cash and securities in an amount about equal
to current debt. Today current

wall

the

of

that "wishing will make it so,"
resource,; regardless of underlying strengths
the limited al- and weaknesses.

con-

materials, such
board, were
completely to other

so

And,

or
holders

all

..

pro-

potential for such a, movement
had been present throughout the

_

not shifted

not

level of business activity, to "push
the idea to the point of suggesting

non-residential

lumber and

LUCkiiy

liquidity can
best be documented in the case of
the business community. At the
end of 1945, all non-financial cor-

struction; -Some
as

obligations.-^ey

orrelative t° assets

...

institutions

and the ability and willingness of vfied. Indeed, the fervor of the be-v pncelenders to make the funds avail- nef in some quarters that what y Life insurance companies had
able were responsible for pro- had gone up would come down 46% of their assets invested in
moting the boom of 1955-56. The sooner or later probably was one Governments in 1945. This

Why did it

are

were a

abilitv of funds

the

Liquidity of Financial Institutions

Korea, y
i .
■ ,'v.* their reserves at the same time.
The willingness of borrowers to if
they had, the inflation problem
incur obligations at such a rate, would have been greatly
magni-

postwar period.

they

as

.

...

^

In addition

?pSSoo mE

Physical needs

sharp reduction in in-

a

come,

Financial

is

the

on

of farmers this has occurred

despite

-

come

in scope

governments.
Wartime
reserves
the inflow and outflow of rash
have been worked down and debt , ~
' 9
outnow ot cash,
has been rising rapidly. In the
Capital Formation Threatens

been

works

sights

■; •••-'

„

The situation has been similar
for farmers and state and local

a

State

*

have

ere-

a

two years,.and a substantial cash and local governments have
BoominS Cross Currents surphis-was ;achieved in^ hsca^ Clearing bff their shelves of
the
v

rr

local govern-

nesses, and state and

and wartime restrictions were

an

ment

and

consumers, busi-

the

large

a

position of

near money

has declined in each postwar year
and now
stands at 1.5. Needless

duced

apparent that the current situation
creates a new basis for uneasineU

'sector of
the economy, to say, that here, even more than there is a new obstacle, the avail'At the same time

...

..

or

ducers of goods which have been
faced
with
slow
markets
have

in

measures'

volume

standing consumer and personal
mortgage indebtedness. That ratio

by-consumers,, businesses,
banks, .or other financial intermediaries, enormously swelled the

Impact of Liquidity Squeeze
evaluation

asset holdings of individuals
amounted to almost six times out-

chased

,

47

are

subject to the

authori-

zation 0f the interstate Commerce

the money and capital markets
today may seem at odds with the

rommi„sion

overall pace of current

'

in

economic

activity. Average hours worked in
manufacturing in 1956 have been
somewhat less than last year and
unemployment for the nation as
a whole has been running moderately higher. Nevertheless, the
sectors of our economy most de-

Comm SS1
The

'

entire

^

issue

of certificates

is to be secured by 100 diesel electrie

road

and 994
Cost

locomotives

switching

gondola cars, estimated to

in all $26,494,508.

Accft_iafpw

in

thp

JJick & lvierie

-

0fferin^

associates; in xneu

are-

|
: ^

'
.

pendent on the capital markets are Pncn « lo., a.axie:r, vv
d
those operating at or near capacity Co., t reeman & uo., wm. a.

generative price lpck & Co., inc., bnearson ruunstrongest.
miill & 'Co/; ine lmnois uo. inc.,
Obviously, the pressure on McMaster Hutcmnson& ^0., muiliquidity has caused some plan- laney, Wells & ^o., ana r. o.
ning goals to be postponed or re- Yantis & Co. inc.

and

in

which

pressures are

-

The Commercial and Financial Chronicle

(1328)

43

Inc., Grand Junction,

SINCE

Corp., East Newark, N. J.
(letter of notification) 45,000 shares of common
stock (par 10 cents).
Price—To be supplied by amend¬
ment. Proceeds—To selling stockholders. Underwriter—
Van Alstyne, Noel & Co., New York. V-

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.

M.

.

for

tions

and

First

Boston

I Jew

named

June

amount.

V'",."

common

is conditioned upon
Automobile stock.

Peabody

&

will

Automation

one

and

(10/2)

New

1968.

(par $4).

debentures

in

To

$2,687,500 to
and

be

None.

being offered for subscription by common stock¬
holders at the rate of one share for each 10
shares held
of July 10; rights to
expire on Sept. 25.
Price—

ing

100%

per $100 principal amount; for
stock, $12.50 per share. Proceeds—To repay bank loans.
Underwriter—None. Statement effective July 10.

Aero

•

'.

State

of California

on

N.

1956.

general corpor¬
Office—4616 Park Ave.,,
Ashtabula, Ohio.

convertible debentures

&

—

• Centers
Corp., Philadelphia, Pa. (10/22-26)
July 30 filed $8,000,000 of 5%.% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 sharer, of common stock
(par one cent) to be offered in units of $50 of debentures
and 10 shares of stock (neither of which will be separ¬
ately transferable until Aug. 1, 1958). Price — $50 per
unit. Proceeds—About $4,100,000 will be used to acquire
seven
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate
activities, and for general corporate purposes.

University Av&., Provo,

Underwriter
and

New

tional

—

Blair

&

Co.

Incorporated, Philadelphia
agreed to purchase an addi¬
shares and reoffer them to per¬

York. Latter has

300,000

common

selected by it at $1.10 per share.

sons

Century Controls

Corp.,

/■

•

Farmingdale,

N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
of principal amount.
Proceeds—For .research and
development; expansion; equipment; and other cor¬

Century Controls Corp., Farmingdale, N. Y.
Aug. 27fefiled 120,000 shares of common stock (par $1).
Price—At iparket (over-the-counter .price in New
York).

Utilities

be

determined

porate purposes.

by

&

Co.; Harriman Ripley & Co., Inc.
up to
11 a.m. (EDT) on Oct.
Street, Boston, Mass.

v'

Brown* Investment Co.,

Ltd.,

•/July 11 filed 60,075 shares of
,t

Bids—To
11

at

49

be

Inc.)

stock

.

diversified, open-end investment company
type. Underwriter—Brown Managemerit Co.r 863: Alaska, St., Honolulu, HawaiL
-*•

Brush Beryllium Co.
(10/2) Sept. 11 filed 400,000 shares of common stock (par $1),
of which 375,000 shares are to be offered
publicly and
25,000 shares are to be offered for subscription by com¬

'

You sell securities and services

No

other medium in

your
-

Private Wires
j

.




to

all

offices^

Cleveland
"T

:

;
..

:;-f

the Chicago ^Tribune.*

Mid-America is

widely- read by/

most important prospects'—both professional investors

and the

general public/ For best results IrOm yokr, advert

rising, call

your

advertising counsel

Tribune representative

today. '.V

or

nearest
>•

4:

r

-

>.43

/-

San Francisco

v.;*

faster pace in Mid--

a

m

../M..7,/.'•> -

*'r■

■

*

at

advertise them

.

"Daisley & Co.,
%,.r

;

America when you

(par $1);

Price—At met asset value, plus a selling commission of
7o£ the; offering price...Proceeds—For investment.
of the management

i

selling stockholder
Underwriter—None.
"... * $

Honolulu, T. H.

common

Underwriter—None.

Proceeds—To

re¬

Federal

Business—A

7J Philadelphia

1986.

construc¬

new

.

Bridgford Packing Co., Anahe-'m, Calif.
Aug. 13 (letter of notification) 222,222 shares of common
stock (par $1).
Price—$1.35 per share.
Proceeds—To
pay obligations, purchase equipment, etc.
Office—1308
No. jPatt Street, Anaheim,
Calif. • Underwriter—J. D.
Creger & Co., 124 North Bright Avenue, Whittier, Calif.

Chicaoo

for

determined

if Carolina Power & Light Co. (10/16)
Sept. 25 filed 500,000 shares of common stock Jno par).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for construction program. Under¬
writers
Merrill Lynch, Pierce, Fenner & Beane, New
York, and R. S. Dickson & Co., Inc., Charlotte, N. C.,
and New York, N. Y.
-y »
'/■■/: /

Underwriter—Thomas Loop Co., New Orleans, La.

ceived

Pittsburgh

be

by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Blyth & Co., Inc.;
The First Boston Corp. and Salomon Bros. & Hutzler
(jointly); Lehman Brothers; White, Weld & Co. Bids—
To be received up to 9 a.m. (PDT) on Oct. 9 at Room
900, 433 So. Spring St., Los Angeles 13, Calif/'.?
:'
Shields

competitive bidding. Probable
bidders: W. C. Langley & Co.; Stone & Webster Secu¬
rities Corp.; Salomon Bros. & Hutzler; Kidder, Peabody

Underwriter—None.

*

bank loans and

—To

10,000 shares of common
(par $25) to be offered to stockholders. Price—To
be filed by amendment.
Proceeds—For

Boston

repay

Underwriter—To

Associates, the parent) on the basis of one
preferred share for each common share held as of Oct.
11, 1956. Proceeds—To reduce bank loans. Underwriter

stock

v

(10/9)

90%

ern

Ashtabula Telephone Co.
Sept. 5 (letter of notification)

'Niw York

Co.

bidding.

BEackstone Valley Gas & Electric Co. (10/11)
Aug. 15 filed 25,000 shares of cumulative preferred stock
(par $100), of which 1,430 shares are to be offered for
subscription by common stockholders (other than East¬

or

Power

10 filed $8,000,000 first mortgage bonds due

tion.

—

rt

:'V7/~.

Electric

Proceeds—To

of America

Office—290

Carolina

Sept.

Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five
cents). Price — 10 cents per
share. Proceeds
For mining expenses. Office — 762
Denver Club Bldg., Denver, Colo. Underwriter—Birkenmayer & Co.; Denver. Colo.

"mon

the

expenses.

Utah.

as

A Armoking Co.
Sept. 12 (letter of notification) 100,000 shares of comstock, to be represented by pre-incorporation sub¬
scription agreements. Price—At par ($1 per share). Of¬
fice—1749 Arthur Avenue,
Fresno, Calif., c/o Alfred G.
Barnett.
Underwriter—None.
The
company is to be

Corp.

incident to development of oil and gas
Office—Osawatomie, Miami County, Kansas.

Underwriter—None.

-"//

Bentonite

Petroleum

expenses

property.

June 29 (letter of notification)
150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For min¬

•

.

Co.

For

by amendment.
mortgage loan to certain
by Barium Steel Corp.;

pay

//.

Underwriter—None..: 7

International .Growth

Carmel

supplied

guaranteed

7"X7'v

-

Aug. 24 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—

Underwriter—Blair & Co. Incorporated,
'.v/u
7/ •
'

—

7:7/;7' 7

Fund, Ltd.
Sept. 21 filed (by amendment) 1,000,009 additional shares
of common stock (par $1). Price—At market.
Proceeds
—For investment. Office—Montreal, Quebec, Canada. 7.>7

—For extensions and betterments to water
system. Office
?—131 Lafayette St., Baton Rouge, La.
Underwriter—

holders at the rate of $10
principal amount of debentures
preferred share held, while the common shares

ate purposes.

stock interest

7

-

10

if Canadian

Rouge Water Works Co.
(letter of notification) 6,946 shares of common
capital stock (no par). Price—$43 per share/ Proceeds

are

23,

49%

later; / '

named

Building. Seattle, Wash.

None.

—

be

(letter of notification) 300 shares of common
stock.
Price—At par ($1,000 per share)./ Proceeds—For
drilling for oil and gas expenses; Office—835 Central

Sept. 11

for each

prior to Dec.

a

—

Sept.

about $3,000,000 for capital
improvements; and for other
corporate purposes. Underwriters—Lee Higginson Corp.
and Allen & Co., both of New York..."

July 1, 1986 (convertible until July 1, 1964) and
63,614 shares of common stock (par $1). The debentures
are
being offered for subscription by preferred stock¬

laws of

purchase

Price

—

subsidiaries

due

under the

Underwriter

purposes.

be offered publicly, and 100,000
Price—At par ($1 per shares'/Pro¬
For equipment, exploration, drilling, working
and other general corporate purposes. Under¬
to

are

• Calenz, Inc.

Inc.

Baton

Arden Farms Co., Los Angeles, Calif.
June 15 filed $4,099,300 of 5% subordinated

formed

for

•

part of October.

debentures,

share

a

Corp., Washington,

Barium Steel Corp. (10/3)
Sept. 11 filed $6,500,000 of 5%%

Price—Tp(; be supplied by amendment. Proceeds; — To
Estate of Edtnee B.
Greenough, deceased. Underwriter—
Lee Higginson Corp.,- New York.
Offering—Postponed

For

To

—

York.

due

latter

corporate

of indebtedness.

Anheuser-Busch, Inc., St. Louis, Mo.

until

Industries

shares

Mining Co., Denver, Colo. 7 • .•
V'y V;7
Aug. 13 (letter of notification) 600,000 shares of common
stock (par one mill). Price—50 cents per share.* Proceeds.
—For equipment, payment of ' current liabilities and
working capital. Office—2450 Kendall Si, Denver, Colcr.
Underwriter—Wayne Jewell Co., Denver, Colo. ;; / V/* y.

..Proceeds—

Technics, S. A., for approximately $500,000, to make a
$200,00$ down payment on three S-58 Sikorsky helicop¬
ters to cost a total of
$1,025,000, and to retire $175,000

Proceeds

stock

of

.

Cadwell

Bahamas Helicopters, Ltd. (10/2)
July 13 filed 300,000 shares of ordinary (common) stock
(par £1 sterling). Price—To be supplied by amendment.

share for each 10 shares

common

0.46875

of

'S

/

Shore

writer—To
-

•

head

None.

Aug. 30 filed 328,723 shares of

ceeds

Treasurer.

held; rights to expire on Nov. 5, 1956. Price—At par
($100 per share) payable in one or two payments. Pro¬
ceeds—For expansion of plant and for advances
to, and
investment in stocks of, subsidiaries.
Underwriter—
•

other

Proceeds

new

500,000

Harry Kahn, Jr., of Washington, D. C., is President and

Aug. <2.2 filed 5,800,000 shares of capital stock to be of¬
fered for subscription by stockholders of record Sept.
14, 1956 at the rate of

rate

States.Y Underwriter—The

the United

Corp., New York.

shares to promoters.

D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital

,

Telegraph Co.

at

Price—10 cents per share.

by amendment.
Proceeds—For
Business—Produces power cranes

Mines, Ltd., Toronto,: Canada
"
July 26 filed 600,000 shares of capital stock, of which

ton, D.' C. Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.

group of dealers to solicit tenders. The offer will expire
on Oct. 15.
'
'v■
•
• • i'

American Telephone &

Burma

com¬

AujME§4 filed 300,000 shareswof common stock. Price—At
marker Proceeds—For investment, i. Office—Washing¬

v'

Co.

the

capital

Automation Development Mutual Fund,

;
v,

a

Kidder,

of

Underwriters—Berwyn
Gearhart & Otis, Inc.,
York, and Creric & Co., Houston, Tex/

New

share-for-share basis. This offer
deposit of at least 1,400,000 shares of

on

indebtedness

(par $5)

stockholders

common

supplied

and excavators in

For general corporate purposes.
Moore & Co., Louisville, Ky.;

T.

•

Louis, Mo.,

stockholders

each share held.

subscription by

program.

First Boston

July 13 (letter of notification) 600,000 shares of common
(par 10 cents) to be offered for subscription by

American Insurance Co., Newark, N. J.
Aug, 31 filed 1,750,000 shares of capital stock (par $2.50)
being offered in exchange for outstanding 1,750,000 shares
of capital stock of American Automobile Insurance Co.
of St.

retire

for

be

15, 1968. Price—100% of principal

Proceeds—To

Proceeds—For

Oct. 16, 1956 at the rate of one new share for '
five shares held; rights to expire on Oct. 31, 1956.

Price—To

subordinated

convertible

0%

oi

offered

expansion

stock

Finance Corp.,

Killeen, Texas
Sept. 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
share. Price—$55 per unit. Proceeds—To purchase used
car paper and
to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.

*ouu,uuo

be

each

3;/'/

.

share.

per

and

of record

Corp., Philadelphia, Pa.

due June

York,

if Bucyrus-Erie Co. (10/17)
Sept. 25 filed 311,040 shares of common stock
to

Audubon Park Raceway, Inc.

—

Fain is President.

Aiitu

.

Price—$10

ISSUE

Underwriters—Kuhn, Loeb & Co.,
McDonald & Co., Cleveland, O., for
public offering. Stockholder offering is .not underwritten.
New

pany to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,*
and Weill, Blauner & Co., Inc. of New York.

£ Allen Organ Co., Mactingie, Pa.*
* "
'
"
Sept. 14 (letter of notification) 80 shares of class A com¬
mon stock,
180 shares of class B common stock and 202
shares of 6% cumulative preferred stock
(par $100). ,
Price—Of class A stock, $125 per share; class B stock,
$110 per share and cumulative preferred stock, at par. x
Proceeds
For expansion; purchase of machinery and
equipment; and working capital. Underwriter—None.
•
Federal

xx

Credit

debentures

v.

American

Atlas

«

expansion program., Underwriters — The
Corp. and Smith, Barney & Co., both of

York.

by .amendment.

REVISED

expansion program.

Atlantic Oil Corp., Tulsa, Okla.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes,
ynderwriter — To be

Allegheny Ludium Steel Corp.
Aug. 31 filed $16,377,000 of 4% convertible subordinated
debentures due Oct. 1, 1981, being offered for subscrip¬
tion by common stockholders of record Sept. 19 at the
rate of $100 of debentures for each 23 shares of stock
held; rights to expire on Oct. 3. Price—100% (flat) to
stockholders.
Proceeds —To repay outstanding obliga¬

/.

stockholders.

mon

Sept. 5

PREVIOUS

ITEMS

•

Astron

Colo.

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium,

ADDITIONS

.

Securities Now in
Abundant Uranium,

Thursday, September 27,1956

* INDICATES

/

Feb. 23

.,.

THI

WOMOi

tMATIUKlWJfAMd

Chicago/

Volume 184

•

'Number 5572.

.The Commercial and Financial Chronicle

.

CenturyFoodMarketsCo.

•

(10/9)

Aug.^30 filed$2,000,060 *of convertible subordinated de¬
bentures and 40,000 shares of common stock (par $1) to
be Offered in units of $50 of debentures and one share
of stock. Price—To be supplied by amendment. Proceeds
—To repay bank loan, for expansion and working capital.
Underwriter—-It. M. Byllesby & Co., Inc., Chicago, 111.

Office-^YourigstOwn, Ohio.

'

Chinook

:

:

Plywood,lnc., Rainier,Ore.

Sept. 4 filed.209 shares of common capital stock. Price—
At par- ($3,000 per share). Proceeds—For acquisition of
a plant site,. construction: of a
mill building, purchase
and installation of machinery and equipment, and as
operating capital. Underwriter — Industry Developers,
.

.Inc.

.v£'..v.;'?,:•«.' • ;■'•

;/.witer-^None^>;^^^

'

„

:

.

by stockholders. Price—$17 per share. Proceeds—Fcr
working capital, etc. Underwriter—The Matthew Corp.,
Washington, D. C.
•
Claussep Bakeries, Inc., Augusta, Ga.
Aug. 13 filed $250,000 of 6% debentures due 1996, and
166,000 shares of common stock (par $1), of which the
debentures and 16,000 shares of stock have been offered
publicly and the remaining 150,000 shares of stock are
being offered for subscription by class A and class B

'Jc Christiana Oil Corp.
Sept. 26 filed 400,000 shares of common stock

(par $1).
supplied by amendment. Proceeds—To re¬
$2,500,000 of outstanding term bank loans and for
other corporate purposes. Underwriters — Laird & Co.
and Model, Roland & Stone, both of New York.
'

Price—To be

stockholders at the rate of two-thirds of a share»
stock for each class A and/or class: B

common

tire

of

new

common

stock held

as

of

Sept. 19; rights to expire

nn

Sept. 29.

Price—Of debentures, 100% of principal amount; and
of stock to stockholders, $5.50 per share; and to public,

.

★ Cimarron Oil Corp. ■}>/_". 1

1,000 -shares of common
-Xr: stock to be Offered to stockholders.
Price—At par ($25
--VXi/i. '
>• a/T •per share).; Proceeds — For new construction.
Under-

49

Citizens Credit Corp., Chevy Chase, Md.
Aug. 27. (letter of notification) 15,500 shares of class A
common jstock.(par $1? 50X, tp
fee p$fepa£fpr spfescriptibii

Life Insurance Co.

Price—$26 per share. Proceeds—For capital and surplus,
including $200,000 to be invested in securities common to
the life insurance industry.
Office—Waxahachie, Tex.
Underwriter—None, sales to be made through Albert
Carroll Bates, President of the company. Statement ef¬
fective Sept. 7.

$6.25 per

share. Proceeds — Together with funds frPm
private placemeht of preferred stock by H. H. Claussen
Sons, Inc., a subsidiary, to retire debentures and,subdevelopment of oil. Office—836 South Crenshaw Boule¬ L sidiary's preferred stock; for, expansion: and, other.- cor¬
porate purposes. Underwriter.
Johnson, Land,' Space
vard, Los Angeles, Calif. Underwriter—None.
;
& Co., Inc., Savannah, Ga»; Statement effective Sept, 19.

Sept. 18

I Sept. 6 (letter of notification)

'

Christian Fidelity

July 12,filed 20,(100^shares of gommon stock (par $10) to
be offered first and for period of 3d days fo "stockholders.

,

Chisago City Telephone Co., Chisago, Minn.

.

(1329)

(letter of notification). 81,250 shares of capital

Price—At

stock.

($1

par

share).

per

Proceeds-—For

,

.

Colorado Springs Aquatic Center, Inc.
H . <
Aug! 23 filed 500,000 shares of common stockr (par -30
cents). Price-^$1. per share. Proceeds—For swimming
pool and related activities, bowling alley, site preparation
.

NEW

ISSUE

v

CALENDAR

:

October

1

(Monday)

Knox

;

(All

Stetfes-;Securities;.Dealers, Inc.)

v, : (Offering

Johns-Man vllle

-

--

'

;

Corp.

Lone Island
i'.*--'./

(Bias

11

EDT)

a.m.

V .October 10

Z;":;

1,173,696

shares

Common
~

rights

;
'

(Wednesday)

.

u

;

-

:

.

:

Common

Madison Gas Sc. Electric Go.—

^

"

t:.

...

(Offering,to stockholders—no underwriting) 08,334 shares

"

"'r;• preferred

-y

?*•

•;*?';•

,

;

■j.

r

Southern

:

Pacific

'

-i:,

(Tuesday)

October 2

r

Common"

_

Co

•'

"II;-

"Bahaihas Helicopters, Ltd..—
...

(Bids

___Equip. Trust Ctfs.
EDT)

noon

$9,600;000

Columbia Gas System, Inc; (10/3): f ;
Sept. 6 filed $25,000,000 of debentures, series G/ due 1981.
:
Proceeds—For > construction program.
Underwriter—To
'■:* be? determined by competitive bidding., Probable biid-

*

.

-Common

A""(Offering to stockholders—no underwHring)

171,187

shares

.

about $580,000,000

Texas Eastern Transmission Corp... -—-Preferred
:V'
(Dillon, Read 8c Co. Inc.) $15,000,000

.Common

—

(piatr & Co. Incorporated)

..

v*

•

f- Kuhri,.i,oeb

T

& CO. and

XI

(Thursday)

Blackstone Valley Gas & Electric Co

by

MCDonaid & Co.) $4,000,000

(Bids

.

11

EDT)

a.m.

Preferred

Holiday Oil & Gas Corp.—

—Common

(Whitehall Securities Corp.)

»

,

$2,500,000

$1,500,000

Lane,'Space & Co.'; J. W. Tindall 8c Co.; and Wyatt,
-V■Neal-&:.'-Waggoner) $220,000
j.-" ■

United Cuban Oil, Inc.———————Common
i'v...

i

-i

iDrive

Fpur Wheel

(S.

D. Fuller & Co.)

$2,500,000

"

;

■

;

.

.

Debentures

Auto Co.™

c- Allyn & Co., Inc.) $1,500,000

(A-

Consolidated Edison Co. of N. Y., lnc.
(10/23)
Sept. 21 filed $40,000,000* first and refunding mortgage
bonds, series; M due 1986.
Proceeds — To help finance
r' 1956
expansion program; " Underwriter — To be determinedJay^competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.; The FirsrBcteton Corp. Bids—Expected -to be received on Oct. 23.;
.

"

r

Halsey, Stuart" & Co. Inc.; Morgan Stanley & Co.
Bids—Expected th be received up to: 11 a.m.! (EDT) on
Oct. 3 at 120 East 41st St., New York, N. Y.
i r

.

Common

—

to "stockholders—underwritten

and

* Economy Auto Stores, Inc.i.r—
;—Common
;
(Court8^& Co,>" Clement' A: Evans & Co., Inc.; Johnsop^,

/

'

Co.._l-,—

public

(Offering, to

r

ders:

c

i

.

300,000 shares

October
Brush Beryllium
V

October 16

Consolidated Oil Management

(Tuesday)

'

Line RR

Seaboard• Air
•;

■v-V't/A;

7

Trust Ctfs.
i;v-

Equip.

--

(Bids noon EDT) $4,650,000
/,
' s• •••
.

Broadcasting

Storer

J' A f':.;

V>

.

.

-

-

.

to be good for a period of three weeks.: Price—
$25 per share.: Proceeds-i-To reduce bank loans. ■ Underwriters—The Robinson-Humphrey Co., Inc. and J, IR
.;'^Hilsman'-&r-Co^i'b6tb.'bf Atlanta, Ga.
v
1
V ■

—Notes

Southern Union Gas Co.__

if ^American Telephone & Telegraph Co.——Common
;(Offering to* stockholders—no underwriting)

,

-Baking Ce., Atlanta, Ga^
Aug. 17 filed 26,768 voting trust certificates, each repre¬
senting the; beneficiaf interest in' one vshaire of common
stock (no,par), to be offered for subscription by holders
Of Outstanding .common stock and participating preferred
stock on the' basis of oiie voting trust certificate for
each eight shares of ieither class of such stock then held
(with an pversubscriptipn privilege); subscription' warrants

Seaboard Finance Co.
V'Vr.,.t (The First Boston Corp.) $15,000,000

,

Common

&

v

'> .x :

i:.

_

*v IVlt:: (bids 11 a.m. EDT) 158,025 shares

;

15,000!pfd. shares and 35,000 common shares

(Loewi & GO;)

(Hallgarten & .Co.) $3,000,000

(v j

Copley & Co., both Of Col;"''' /
J
^
*

,,

if Racine Hydraulies & Machinery, Inc.
•'

j

Lieberknecht, vine.

orado.Springs, Colo.
Columbia

i

>

FanStgel Metallurgical Corp.-Debentures

*'■

••■Iv:

679,012

Southern New England Telephone Co.—

^

Lighting■ Go.________—_—Preferred

;>K;

•

650,000 shares/

about

Co.—Common

underwriting)

Common

(Offering-to stoclcholdersr—underwritten by Morgan Stanley V
Co.)

Telephone

stockholders—no

to

—Arthur L. Weir & Co. and

,;
';

Southern New England

$1,000,000

-including parking, and land cost ($95,000). Underwriters

Corp..——____Class A Common
.*\. .; .%;(Ira Haupt & Co.) 150,000 shares '

'.V-;.

Gold Seal. Dairy Products Corp..____Class A Stock

-ii

-

Carolina
*

Co._——r.Common

&

Light Co.—--

(Merrill Lynch, Pierce,

u':

.■

?,

^Reynolds"At Co.) 200,000 shares

Power

jfrtP-V' ■:•;&

New

Fenner & Beane

-—Common
R. S.

and

v

Dickson

Co., Inc.) 500,000 shares;

Aug. 16 (letter of notification) $250,000 of 10-year 5Vz%
collateral trust^^ bonds -due Sept. 9, 1966. ^ Office—7352

Ave., St. Petersburg,: Fla, Predecessor—^Lyniph
Underwriter—Security &' Bond Cot, Lexington,
Kentucky.
V
■'
Central

..4

.•

Oil Co.*

York, New Haven & Hartford RR.

'

.

Common

Transcontinental Gas Pipe Line Corp
(Offering to stockholders—to be underwritten

•

-V

Weld

&

Co.

by

White,

Webster Securities Corp.)

and Stone &

;

;

be~invited)

(Bids to

'

(Bids to

(Wednesday)

3armm^teef.

!

Corp
Corp.

Higginson

(Lee

.

Allen & Co.)

and

$6,500,000

Columbia Gas System, Inc.
;

;;

Co.

to

(Wednesday)

"

*

Marsh

-a

(Cruttenden

Common

—

Landstreet ar Kirkpatrick, Inc.)

&

Co.

$583,120

---.Debentures &

Go.___

Steel

stockholders—underwritten; by

and

Common

Walt Disney Productions.——
Debentures
(Kidder, Peabody & Co.) $7,500,000
=

v
•

Corp.)

311,040

October 4

,

TEMCO
(A.

C.

Aircraft

'

Newark

of
■

4

(offering

V

(Bids

Common

1

by Merrill Lynch,
Pierce, Fenner & Beane) 55,000 shares
Ohio

October 8
-

y*

Common

——

Southern Bell Telephone &
Co.

■f,

(Bids to

Debentures
be

invited)

8c

(Bids

Mobile

Gas

(Offering

National

(Tuesday)

(Offering

9

a.m.

PDT)

Century Food Markets Co.
<H.

M.

Byllesby
'

~

&

Inc.)

Co.,

/

,

.—Bonds

:

EDT)

Service

tp stockholders—no

Bank
to

(Thursday)

Detroit-——

of

a

-—Common

underwriting)

per

Morgan

Debentures & Com.

$2,000,000

of

debentures

and

Public Service

Electric &

(Bids

11

a.m.

Gas

EST) $50,000,000

40,000 shares of stock

Food Mart, Inc
——————
(Offering to stockholders—underwritten by
Hammill

&

Co.)

*

Bonds '

Co.-—-

Common
Shearson,

90,337 shares

November 27

(Tuesday)

Carolina Power & Light Co.
(Bids to

be

Inc.

Statement effective..

Denver, Colo.

-

common, share at any time prior to Dec. 31,
$2 per share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital.
Under¬
writer—To be named by amendment.
one

1957 at

..

November 14, (Wednesday)

$8,000,000

Construction Co.,

purchase five common shares. Price—$25.50
unit (each warrant Will entitle the holder to pur¬

chase

--—Common
by

& Marine

warrant to

r

30,000 shares

stockholders^—to be underwritten
Stanley & Co.) 263,400 shares

Land

Aug. 29 filed 2,500,000 shares of 6% convertible noncumulative preferred, stock, first series (par $1), and
warrants to purchase 500,000 shares of common stock
(par 10 cents) to he offered for subscription initially by
common stockholders in units of 25 preferred shares and

$6,500,000

Corp.—-—

share

share. Pro¬
Office^— 747 Windspr

Diversified Oil & Mining Corp.,

--Common
Beane)

Fenner

or one

Priced—$9.50 per

(letter of notification) 150,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—Fee
payments of botes, to purchase and equip three boa:*
and working capital. Office—1111 Ncl First Ave., Lake
Charles, La. Underwriter—Vickers Brothers, Houston,
Texas.

$6,000,000 '

Co.—--

Pierce,

Devall

t

Bonds

California Electric Power Co
(Bids

Lynch,

a m.

November 1

Common

stockholders—to be underwritten
by Blyth
Co., Inc. and Stern, Frank, Meyer 8c Fox) $3,990,000
to

October 9

11

held.

May 16

(Tuesday)

EDT) $28,000,000

a.m.

Register

(Merrill

$60,000,000

Union Bank & Trust Co., Los Angeles
(Offering

•

$40,000,000

'——
11

warrant

St., Hartford, Conn. Underwriter—None.,

170,000 shares

invited)

each

ceeds—For working capital, etc.

Co.—--—Common

Ohio Power Co.—-—————————-Preferred

Standard

Telegraph

w——

V

(Bids

.

$9,650,000

Brothers)

(Vickers

.

be

PoWef Co.-

(Monday)

Republic Cement Corp.—

to

October 30

share for each two shares now held

one

for

Consolidated Edison Co. of New York, Inc.—Bonds

stockholders—underwritten

to

of

$5,000,000

(Tuesday)

Service

(Bids to be invited)

:

-

National Newark & Essex Banking Co.
'

Corp..————Debentures

Public

Illinois

June 28 (letter of notification) 8,000 shares of commoa
stock (par $1). Price—$6.25 per share. Proceeds—To sell¬
ing stockholders.
Office — 2201 West Burbank, Calif.
Underwriter—Neary, Purcell & Co., Lbs Angeles, Calif.
Cro-Plate Co., Inc.
Aug. 22 (letter of notification) 4,123 shares of commonstock (par $5) to be offered to stockholders on the basis

$8,000,000

Allyn 8c Co. Inc. and Keith Reed & Co.)

Central

-

Debentures & Common

October 23

Equip. Trust Ctfs.

$3,360,000

(Bids noon CDT)

Debentures
$4,000,000

(Blair 8c Co. Incorporated)

-

Price—50 cents per share.

Crestmont Oil Co.

First

(Monday)

(Allen & Co.)

Centers Corp.

(Thursday)

Chicago & North Western Ry
A.

The

shares

ACF-Wrigley Stores, Inc.

'

f

'■

■

,

/

First Trust Co. of Lincoln)
135^000 shares of stock

The

and

$700,000 debentures

■

$25,000,000

(Bids 11 a.m. EDT)

Inc.

(Clark,

•

'•'

Common

October 22
? Kusan,

f

stock.

>•

—

Boston

Debentures

^

17

6t common
Proceeds—For mining
expenses,
Office — 1902 East San Rafael, Colorado
Springs, Colo, Underwriter — Skyline Securities, Int^
Denver, Colo.

Bonds

invited) $30,000,000

,

Crater Lake Mining & Milling CoM lnOb
March 8 (letter pf notification) 575,000 shares

'

•m-

Bucyrus-Erie
(Offering

;
.

be

October

Debentures

—

$2,766,750

Public Service Co. of Indiana, Inc

shares

r-441,250

Equip. Trust Ctfs.

A-.v.

•

Bonds

invited) $15,000,000

Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common stock (par one
cent). Price — 10 cents per share. Proceeds — For ex¬
ploration, development and acquisition of properties and
for working capital. Underwriter—Columbia Securities
Co., Denver, Colo.
,

Debentures

Gardner-Denver Cc.

(Hornblowcr &c Weeks and A. G. Becker & Co. Inc.)

Hawaii

.

Bonds

(Territory of)

(Bids to be



$10,000,000

invited)

$12,500,000

December

4

(Tuesday)

Michigan Bell Telephone Co.-:
(Bids

to

be

invited)

^-—Debentures

$30,000,000

•

Douglas Oil Co. of Carolina
Sept, 17, filed, $3,500,000 of debentures; due

1968, with

jContinued or^jpage 50

50

(1330)

The Commercial and Financial

Continued

from

both

49

page

of

Orlando, Fla.;
Park, Fla.
;

Winter

and

Security

warrants

to

purchase

350,000

shares of $1 par value
common stock.
Price—100% of principal amount. Pro¬
ceeds
Approximately $1,200,000 to retire outstanding
5% secured notes; $1,000,000 for repayment of shortterm bank loans; $850,000 for construction of a unifying
unit and a topping unit; and $350,000 for operating cap¬
ital.
Underwriter — Shearson, Hammill & Co., New
York. Statement withdrawn Sept. 26.
>

•

Inc.,

Illinois Bell Telephone Co.

'

>

par)
being offered in excnange for outstanding 5%
cumulative prefererd stock, series A, of Home
Telephone /
& Telegraph Co. and Citizens
Independent Telephone Co. ;
on the basis of one share of General
.

American

Telephone

&
Telegraph, Co.,> which owns
4,612,578 shares (99.32%) of .Illinois
company's stock.
Underwriter—None. 7 ;; 7/7,

preferred plus $2 in

J:'l:

Price—At par ($100
Proceeds—To repay advances from
parent,

share).

per

cash for each share of Home
preferred, and one share of
General preferred plus $2.50 in cash

7 :■

for^ each Citizens

77.', .yy

•

Inter-Mountain Telephone Co* / 7 :
,/.7.
V /
Sept. 6 filed 285,000 shares of common stock
(par $10)
being offered for subscription by common
stockholders
of record Sept 15 in the
ratio of two new shares for

preferred share.

The exchange offer is part of
proposed /
plan of merger of Home and Citizens into General. Offer
will expire on Oct. 11*

Dow Chemical

v

Aug. 10 filed 580,531 shares of capital stock
being offered
for subscription by stockholders of
record Aug.
3i,''l956,
on the basis of one new
share lor each
eight shares held;
rights to expire on Sept. 28, 1956.

General

Telephone Co. of Indiana, Inc. 77-V;7Sept. 6 filed 95,000 shares Of $2.50 preferred stock (no,

—

9

Associates,

\

,

Chronicle... Thursday, September
27,1956

Co., Midland, Mich.
...*7/
Aug. 27 filed 150,000 shares of common stock (par $5)
to be offered for subscription by employees of the com¬
Dealer-Managers—Paine, Web-^
ber, *
Jackson & Curtis and Stone & Webster Securities
pany and certain subsidiaries and associated companies. *
T, each five shares
held; rights to expire on Oct. 12. Price
Subscriptions will be received by the company Oct. 1
—$10 per share. Proceeds—To
repay bank loans and for
26* * P^ice7/$60~ per * share. Proceeds—For 7.7. General -Tire & Rubber Co., Akron, Ohio
additions and improvements to
property. Offiee—Bristol,
expansion, etc. Underwriter—None. 7;y/27 filed 26,068 shares of $5 cumulative preference
Tenn. Underwriter—Courts &
Co., Atlanta, Ga., will un¬
stock (par $100) to be offered in
exchange for common
derwrite 156,672 shares.
lir Dunes, Inc.
:
\ — 7
-7:
\
stock and 6%
promissory notes of Carlon Products Corp.
Sept. 12 (letter of notification) proposing an issuance of
The exchange offer will be
International Shipbuilding
subject to acceptance by 7
Corp. v;777 7. 77.7 ■
new securities.
Proceeds—For construction of buildings
owners of all of the
outstanding $1,060,000 notes and by 7 Aug. 9 (letter of notification) 100,000 shares of common
and for purchase of land.
Office—410 Times Building,
not less than 39,400 of the
stock "(par, 50
cents). Price—$2 per share. Proceeds—
68,837 shares of Carlon stock. *
Portland, Ore. Underwriter—Leslie W. McHendry, MilFor general corporate
Underwriter—None.
purposes. Business—Manufactures
■>/Jjy.y '7* 7;;v: 7,7 7^7/7777
waukie, Ore., and Wy W. McGeorge, Portland, Ore.
outboard cruisers. Office—471 N. E.
'
General Uranium Corp. (N.
/
79th Street.
t
*
}•"* '
'■ '
J.), New York
Miami,
Fla. Underwriter—Atwill &
Duro Consolidated, Inc.
Ian. 18 filed 400,000 shares of common
Co., Miami Beach, Fla.
stock (par 10 «:
Aug.'28 (letter of notification) $200,000 of 6% con- ;
2ents)i Price—$1 per share. Proceeds—For
plant facil-7 77 Investment Corp. of Florida
7.7777y/7:r
vertible debentures to be offered to stockholders of
Ities, survey of property and underground
development. < Aug. 24 filed
record Aug. 15, 1956. Price—At par (in denominations
$515,000 of $60 cumulative preferred stock
Underwriter—None. Maurice Schack,
Middletown, N. Y.,
to be offered in units of
of $100 each).
Is President. Statement effective
$1,000 each and 5,150 shares of
Proceeds — For acquisition of factory
March
.

.

fhroSughPtOcT

>

>

*

,

,

■f

,

fx

f

'

,

•

V

-

.1

'

s

,

*

•

.

i

'■.

'

'

**

•

J ^

,

11.

equipment,

note

Ave. and Edison

payable and expansion. Office—18th
Way, Redwood City, Calif. Underwriter

7

—None.

^Georgia-Pacific Corp.,
Sept. 25 filed

a

*

Portland, Ore.

maximum of 500,000 shares of

Explorations, Ltd.

(par $1). Price—60 cents per share. Proceeds—For gen¬
eral corporate purposes.
Office—Toronto, Canada. Un¬
derwriter—Foster-Mann, Inc., New York. :
V7;7.'^'
•
Economy Auto Stores, Inc. (10/2)
Sept. 13 (letter of notification) 22,000 shares of common
stock (par $1)* Price—$10 per share.
Proceedsj— For
additional capital. Office—1130 Bankhead Ave., N. W.,
Atlanta, Ga. Underwriters—Courts & Co.; Clement A.
Evans & Co., Inc.; Johnson, Lane, Space &
Co., Inc.; J.

W. Tindall &

Atlanta, Ga.

Co.; and Wyatt, Neal & Waggoner, all of

7 777

;.

;/

(par $1), the number of shares to be dependent
conditions at time of
offering and will be
a view to
providing the company with *
net proceeds of
approximately $15,000,000. Proceeds—
For acquisition of all assets of
Hammond Lumber Co.;
for construction of a new
mill; and for general corporate I
purposes. Underwriter—Blyth &
Co., Inc., San Francisco
and New York.,
777777'7.
77.... 77:717.

,7....;v.:-1"

determined with

.77

71 Gold
Aug.

Mountain Lodge, Inc., Durango, Colo.
filed 5,000 shares of class A
voting common
(par $1), 295,000 shares of class B

23

stock

due

non-voting
(par $1), and $700,000 of 4% debentures
31, 1975, to be offered for sale in the States

Dec.

of Texas

if Eternalite, Inc., New Orleans, La, Vv7,57'
Sept. 24 filed 200,000 shares of class A common stock
(par 50 cents).
Price—$4.50 per share. Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment.; Underwriter—
Vickers Brothers, New York.
Fansteel Metallurgical Corp. (10/10)
Sept. 11 filed $3,000,000 of subordinated debentures due
Oct. 1, 1976.
Price — To be supplied by amendment.
Proceeds—Together with bank loan, for construction of

tantalum-columbium facilities at
Muskogee, Okla.
Underwriter—Hallgarten & Co., New York.
new

Food Mart, Inc., El
Paso, Texas (10/9) ;7 7,7<77
Sept., 18 <filed 90,337 shares of common stock (par $2)
to be offered for subscription
by common stockholders
of record Oct. 9, 1956 at the rate of
one new share for
each eight shares
held; rights to expire on Oct. 23, 1956.
Price—To be supplied by amendment.
Proceeds—For
expansion, equipment and working capital. Underwriter
—Shearson, Hammill & Co., New York.

stock,

;

'

stock

common

and

2,950

Colorado in units of 50 shares of class A
of - class f B stock and one

shares

$7,000

debenture.

if Hawaiian Electric Co., Ltd., Honolulu
Sept. 21 filed 77,000 shares of
to

be

offered for

at rate of

—To

be

one

new

supplied

common

s

stock

C.

Colling

General Credit, Inc.,
Washington, D. C.
Aug. 17 filed $2,000,000 of 6%
subordinated sinking fund
debentures, due Sept. 1, 1971, with

to purchase
160,000 shares
stock, to be offered in units

warrants.

Price—$500

!^nd workin8

per

detachable warrants

of

of

participating preference
$500 of debentures and 40

unit.

Proceeds—For

expan-

captal.

Underwriter —None named.
Offering to be made through selected
dealers.
• General
Guaranty Insurance Co.
Aug. 24 (letter of
notification) 42,850 shares of common
stock (par $2.50) to be
offered to stockholders on
the
basis" of

two

shares

for

each

Sept. 24; rights to expire Oct.

Proceeds—Foi>general
ter

Park, Ela.

seven

12.

shares

Price—$7

held

about

per

share.

corporate purposes. Office—Win¬

Underwriter—Grimm & Co., New
York;
Hough, Inc., St. Petersburg,
Fla.; First Florida
Investors, Inc. and Leedy, Wheeler &
Alleman, Inc.,

Beil

&




shares of

A

stock

common

Manufacturer of toys, electric trains and
various custom

Underwriter—Clark, Landstreet

patrick, Inc., Nashville, Tenn.

:

Lewisohn Copper Corp.

&

Kirk-

777"77-.

y -

v

-

March 30 filed
100,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of
leasehold properties,

improvements,

and- for

purposes.

Ariz.

equipment
Office—Tucson.

F. Breen, New York.

Lithium
June

-

general

corporate

Underwriter—George

Offering—Postponed.

7

Developments, Inc., Cleveland, Ohio

21 filed 600,000 shares of
cents), of which 600,000 shares

common

are

to

stock

be

sold

(par 10
for

ac¬

count of the
company and

90,000 shares for selling stock¬
holders. Price—$1 per
share, by amendment. Proceeds
—For exploration and
development and other general
corporate purposes.
Underwriter—George A. Searight,

Winterhaven,

Underwriter—Arthur B. Hogan, Inc.,
Hollywood,

New York City.

^Holiday Oil & Gas Corp.

(10/11-15)

Long Island Lighting Co. (10/1),
April 5 filed 120,000 shares of cumulative preferred
stock,
series G (par $100) (on
Aug. 29 company announced it
now plans issuance of
180,000 shares of cumulative con¬
vertible preferred
stock, to be first offered for subscrip¬

Sept. 21 filed 500,000 shares of common stock
(par 10
cents). Price—$3 per share. Proceeds—To
repay bank
loans; to drill some 36 provep locations on now
produc¬
ing leases; and for working 'capital.
Office—Arkansas
City, Kan. Underwriter
Whitehall Securities
—

New York.

tion by common stockholders of
record Sept. 28, 1956, at
one preferred share for each 38
shares of common

Corp.,

rate of

•

Hydrometals, Inc., Chicago, III.
Aug. 10 filed 78,275 shares of capital stock
(par $2.50)
and rights to subscribe to an
additional 391,375 shares
(exercisable over a five-year period at $13
per share).
Of the total, 77,500
shares, plus rights to purchase an
additional 387,500 shares, are to be
offered in exchange
for the license rights and assets of
Hayden Projects, Inc.,
and the remaining 775
shares, plus rights to buy an
additional 3,875 shares, are to be issued to
Cady, Roberts
& Co., New York
City, as a fee for its services with such
transaction.

150,000

Kusan,

plastic items.

'

r

20

Inc., Nashville, Tenn. (10/3-4)
Aug. 29 filed 116,624 shares of common stock
(par $1).
Price—$5 per share. Proceeds—To reduce
debt, for new
tooling and equipment and working capital. Business—

Underwriter—None.

—

Calif.

class

,77 /,/,;/

(10/9)

filed

Omaha

Haupt & Co., New York./

•

(par $20)

Calif.

Broadway Ave.,

Corp., Thomson, Ga.

of

(par $1). Price—To be supplied by amendment
(expect¬

common stockholders
share for each 10 shares held.
Price
by amendment. Proceeds—For plant

Scottsbluff, Neb.
Scottsbluff, Neb.

Edward

Knox

ed at $4 per share). Proceeds—To
pay loans from banks
and factors; and for
working capital and other corporate
purposes. Business—Prefabricated
homes, house trailers
and lumber. Underwriter—Ira

subscription by

expansion program.

Underwriter—Wachob-Bender Corp.,
Lincoln, Neb. '
77,',7777:V:. 7 -7.V

June

Holden Mining Co.,
Winterhaven, Calif. «
April 13 (letter of notification) 250,000 shares of
capital
stock. Price—At par ($1
per share). Proceeds—For min¬
ing expenses. Address
P. O. Box 308,

—

't ~
Johns-Manville Corp. (lOVl); 7
-7- ^. y >
Sept. 12 filed a maximum of 650,000 shares of common
stock (par $5) to be offered for
subscription by common
stockholders of record Sept. 28, 1956 at the rate of
one
new share for each 10
shares held; rights to
expire on
Oct. 17. Price—To be
supplied by amendment. Proceeds
—For plant expansion and
improvements, working cap¬

•

-7

Genco Oil
Co., Inc.
Aug. 24 (letter of
notification) 55,000 shares of common
stock (par $1).
Price—$5 per share.. Proceeds—For oil
development expenses. Office
1907
—

yyyj^yy- yy-y

—Anderson Cook Co., Inc., Palm
Beach, Fla.

and

—

Underwriter

..T.

H; 'yy:yjy Jy ( ^J/yy J,y 7Q
July 27 (letter of notification) 110,000 shares of common
stock (par 20
cents). Price—$2.50 per share. Proceeds
—For sales promotions and
operating capital. Office—
411 No. Scenic
Highway, Lake Wales, Fla. Underwriter
Joa Co;

.

Growers Container
Corp., Salinas, Calif.
May 28 filed 600,000 shares of
common stock
•

—

—

.

W

—

^

Mining and Oil, Inc.

.

,

—

(letter of notification)
1,200,000 shares of com¬
mon stock
(par five cents). Price
25 cents per start
Proceeds—For expenses incident to
mining operations
Offlce—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York
6. N. Y.

be

cents

•

(par $1)
<o Joe offered primarily to individuals and firms who
are
(10/2)
engaged in or closely allied to the
growing and
Sept. 12 filed $1,500,000 of convertible debentures
due 7
shipping industry. Price—$3 per share.! Proceeds—For
Oct. 1, 1971.
Price
To be supplied
by amendment.
working capital, capital expenditures and other
corpo¬
Proceeds—$130,058 to retire 4*/2% sinking fund deben¬
rate purposes. Underwriter—None.
tures due July
1, 1957; and for expansion program and
Gunkelman (R. F.) &
Sons, Fargo, N. D.
working capital. Underwriter—A. C.
Allyn & Co., Inc.,
May 25 (letter of notification) 1,800 shares of
5% cumu¬
Chicago, 111. ;
lative preferred stock
(par $100). Price—$98 per share.
•
Gardner-Denver Co., Quincy, III.
Proceeds
For expenses incident to
(10/9)
commercial grain
Sept. 18 filed $10,000,000 of convertible
business. Underwriter—W. R. Olson
subordinated
Co., Fargo, N. D.
debentures due Oct. 1, 1976. Price—To
be supplied by
Hard Rock Mining
Co., Pittsburgh, Pa.
amendment, Proceeds—To repay bank
loans ($4,500,000
Feb. 20 (letter of
at June 30,
notification) 1,000,000 shares of com¬
1956) and for working capital. Business—
mon stock
(par one cent). Price—Five cents per share.
Rock drills and air
tools, air compressors, pumps and
Proceeds—To purchase machinery and
portable pneumatic tools.
equipment and
Underwriters—Hornblower &
for working capital. .Office
377 McKee
Weeks, New York, and A. G. Becker &
Place, Pitts¬
Co., Inc., Chi¬
burgh, Pa. Underwriter—Graham & Co.,
cago, 111.
'
Pittsburgh, Pa.
Gas Hills

10

Price—$10,000 per unit. Proceeds—For pur¬
ital and other corporate
chase of property,
purposes. Underwriter—Morgan
remodeling of present main building,
for new construction and
Stanley 8c Co., New York.
:
working capital. Business—7
V7;/
" ;y
Operates year-round resort hotel.
Kerr Income
Underwriter—None.
Fund, Inc., Los Angeles, Calif.' "
• Gold Seal
July 30 filed 100,000 shares of capital stock
Dairy Products Corp. (10/1-10) •
(par $1), of
Sept.. 20 filed 200,000 shares of class A stock
which 9,300 shares will be
initially sold at $10.98 per
(par 10
share. Additional shares will be
cents) of which 15,000 shares will be reserved for sale
offered at a price equal
to employees at
to the net asset value of the
$4.55 per share,; Price—$5 per share
Fund, plus a sales load of
to public.
Proceeds—For expansion and to
8%% of such price. Proceeds—For
investment. Invest-:
repay out¬
ment Manager — California Fund
standing obligations. Office—Remsen, N. Y: Underwriter
Investment Co., of
—All States Securities
which John Kerr is also President.
Dealers, Inc., New York.
:
7 '
77
• Great
Basin Uranium Corp.
r
Kinney Loan & Finance Co. "7
Aug. 27 (letter of notification) 600,000 shares of common
Sept. 11 (letter of notification) $150,000 of
6% sinking
stock (par $1).., Price-—50 cents
fund capital
per share.
Proceeds
debentures, series A, due Sept. 1, 1971/Price
For mining expenses.
Office—c/o Madison B. Graves
—At par in denominations of
$1,000 each.r Proceeds—
(President), 826 South Third
For working capital.
street,/Las Vegas, Nev.
Office/— 911 Tenth St.; Greeley,
Underwriter—None.
:
'
Colo,

Four Wheel Drive Auto Co.

Jan. 4

at

each

common

market

on

to

offered to purchasers of
preferred
per share at rate of
tign shares for
preferred share bought.
Proceeds—For working
capital.
Office—Fort Lauderdale, Fla.
Underwriter—
None.
v/y;
,7v
;
stock

stock

Eastern-Northern

June 4 (regulation "D") 500,000 shares of common stock

stock

common

■•r

-

Statement effective Sept. 19.

stock

held); rights to expire

($100

per

on

Oct.

15.

Price—At

par

share). Proceeds—To repay bank loans. Un¬
derwriters—Blyth & Co., Inc., The First Boston Corp.
and W. C. Langley &
Co., all of New York.
'
Macimiento Uranium Mining

Corp.

.

-

,

July 31

(letter of notification) 1,000,000 shares of com¬
istock (par one cent). Price—20
cents per share.
Proceeds—For current
liabilities, exploration, adminis¬
trative expenses and
working canital.
Office
Kimo
Bldg., Albuquerque, N. M. Underwriter—Carroll &
mon

—

.

Denver, Colo^

Co.,

<

''

Volume 184

Number 5572

-

.

.

.

The Commercial and Financial Chronicle

(1331)

51

*

Macirtar, Inc. 4 ;
4.:44/;
July 23 (letter ol notification) 400,000. shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For general corporate purposes. Business — Manufac¬
tures steel and aluminum specialty products.
Undei^
writer—C.
Montague, Inc., 15 William Street, -New
'York 17, N. Y.
\
y ;v. z
■.

.^National Sugar Refining Co.

construction

.

Aug. 24 filed:94,803 shares ot capital stock (no par) being
offered for subscription by stockholders of record
Sept.
•13
:

,

at

the

rate/of

one

new

share

for

each

six

250

race

ticket

machines; for purchase

issuance of semi-blank race tickets;
arid for working capital and general
corporate purposes.
Office—527 Madison
Avenue, New York 17, N. Y. Un¬

shares

heldj-Tights^ to expire on Oct. 1. Price—$30 per share.
/Proceeds—For working capital and other corporate purposes.
Underwriter—-Morgan Stanley & Co., New York.

Madison Gas & Electric Co., Madison,Wis. (10/1)
New England Telephone &
Telegraph Co.
Sept., 10 filed 68,334 shares of common stock (par$16)/Aug. -3£iletL 613,010 shares of capital stock being offered
to be offered for subscription'by common stockholders >. for subscription hy-stockholders at the rate of one new
of record Oct 1, 1956 on the basis of one new share for
share for each five- shares held as of Aug. 29; with
/each five shares held; rights to.expire Oct. 29.^,Price— " rights • to expire .on Sept. 28:* American Telephone &
To be supplied by amendment.* Proceeds—For construe- ' - Telegraph Coi owns 69.26%
(2,122,842 shares) of out-

of

iOf 40 machines for

derwriter—Wistor R. Smith & Co., 40 East 54th
New York 22, N. Y.

Street,

•Ar Pine Street Fund, Inc., New York
Sept. 19 filed (by amendment) 135,000 additional shares
4of common stock (par $1). Price—At market. Proceeds
—For investment.
/
/ /
.*
;
'

it Pioneer Telephone Association, Inc.,
*4
./ Ulysses, Kan. ,-4
^
'-4 4 ' ,4,^.. Sept. 11 (letter of notification) 39,752 principal amount
par ($100 per share). Proceeds
of
equity certificates' to 4be" sold .to members /and sub*
Marsh Steel Corp., KoV Kansas ®ltyr
repay temporary,borrowings.:^ndenvriter-None. 4-scribers. Price—At par (minimum amount to be $45).
Sept. 13 filed $300,000 of 5^% series debentures due 1957 M /-Niagara UraniumCorp,t Sail Lake City, Utah
»•>//* Proceeds—Together with other funds, to be used for
to 1962 to be offered in exchange for outstanding/5 %
//April;3 j(letter oh notification) 2,400,000 shares, of com- 4 the purchase and acquisition of the telephone exchange

.tion program.
.

Underwriter—None.^■:h>,v/t^->--Xr.;Standing_stockwJRfcicer--At

*

Mo.:^Sj/^°

-

.

^eries A debentures, witht a cash adjustment for/ intereststock

/accrued

on

the outstanding debentures^' Price—100%,4)j;;

(par 3^ cents).

Price—10 cents

per

share,

Proceeds
For mining expenses<rOffice — 345 South
Underwriter—The/First Trust Co., of / /State St., Salt .Lake City, Utah. Underwriter—Birkeny.4/^/4yV-:'n?-;vi"■;
mayer & Co., Denver, Colo. *f '-v;-y:
Zv4y4/'43.4
•

principal amount.

'Lincoln, Neb.

4,:, Marsh Steel Corp., No. Kansas City, Mo. '(10/3)
Sept. 13 filed $700,000 of 5^2% convertible sinkin^fjilnd

>and

g(par $1). Price—To be supplied by amendment. Proceeds
p—-For equipment, to finance inventory and accounts re¬
ceivable, for advances to subsidiaries, and for working
"capital.. UnderwritersThe First Trust Co. of Lincoln,'

(letter of notfication)

280,000 shares of
Price—25 cents per

/stock (par 17% cents).
ceeds—For

chmrqfob

shar^Aj$o-

-

on

writer—Standard Securities Corp., Spokane, Wash.

V

to

expire

Oct.

on

5.

Price

$1.25

Policy Advancing Corp.
Aug. 31 (letter of notification) $240,000 of 6% subordin¬
ated convertible debentures due Sept. lj 1966 (eafch $10
principal amount being convertible into one share of
common stock) to be offered for subscription by stock¬
holders on the basis of $10 of debentures for each share
held (with an oversubscription privilege). Price—At par.
Proceeds—To retire $16,700 of outstanding debentures
and for working capital. Office—27 Chenango St., Binghamton, N. Y. Underwriter—None.
4

4

.

per

Puerto Rico Jai

the Carolinas, Inc.; to reduce
indebtedness; for construction and modernprogram; and for working capital. Underwriters

July

short term
ization

'<^.ey.. 4.?1' ?"C" Ashvllle. N- ?•

common

•

,

..

..

,

'

'

•

Hydrides,

4

Inc.,/Beverly, Mass

four shares held. Price—At

-4/

.

5

—To

"Aug. 23 filed 85,266 shares of common* stock (oar $5)
.being offered for subscription by common stockholders
•of record Sept. 26 on the basis of one new
share for

•common

potassium and sodium, etc. Underwriter—White,. Weld
Co., New York, for 44,362 shares; with Ventures, Ltd.

-

&

4: 4'-

4

remaining 40,904
,"44;'4y4.-'44-

Michigan Wisconsin Pipe Line Co.'y^' •*yyyt'
July 2 filed $25,000,000 of first mortgage pipe line -bonds
; due 1976. Proceeds—To pay off short term bank loans

fice—San

construction

Underwriter

program.

i

determined

by competitive bidding. Probable bidders:
Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
4 Aug. 1, all for 4%s, but were turned down. No
nem^ate
for bids has been set. 4'4y;,,yr yy;y/4-'4y 4\/;:yy:/4
.

i

Halsey,

.

.

Inc., New York
444 y;y4.42,500,000 shares of common stock' (par
one cent).
Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin lead-zinc-copper-silverJ mine

*

22

filed

&

y

V

"■:

Mission Appliance Corp. of

'

•

•'

Miss.

Underwriter—Lewis

&

^4

Co., Jackson, Miss.

it Oxford Loan Co.

Mormon Trail Mining Corp., Salt Lake

National
June

:V'-"v;r*f*44

By-Products, Inc.

19

(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceeds—Tor pay

stock

•

Federal

estate

taxes.

Office—800

Bankers

Oxford

*

•

* National Life of America, Mitchell, S. Dak.
'^> 4
Sept. 21 filed 86,784.7 shares of common stock (par $5)
to be offered for subscription by each of the comjfsfny's
23,279 policyholders on and as of July 31, 1956 at the rate
to

be

pons
!

exchangeable fpr Founders certificates ancJ^cj&uissued by National Life as a part or feature of
life insurance policies.
Price—$7.50 per Share.

poses.

working capital and other
Underwriter—None.

National Old Line Insurance Co.
-'

'

•.

-

■Nov. 15, 1955 filed 50,000 shares of class A

.Underwriter

Tenn.,

and

—

New

Equitable

N.

Securities

Y.

*

corporat^piir/
common

~~4

stock

(par $2) and 50,000 shares of class B common stock
(par-$2).-Priee—To be supplied by,amendment. Proceeds
—To selling stockholders. Office — Little Rock, Ark.

York,
Digitized.-postponed.
for FRASER

-

*

certain

Proceeds—For
.

thesTfates

Corp., Nashville,
Offering — Indefinitely

-

tion.

mon

(letter

stock (par

Equipment Corp.
of notification) 60,000 shares of com¬
$1). Price—$5 per share. Proceeds—For

4'

■■■

Republic Cement Corp.

(10/8-12)

Price—$10

share.

River Valley Finance Co.
Aug. 29 (letter of notification) 11,000 shares of class A
common

stock

and

518 shares

of class B

to be offered first to stockholders.

Proceeds
Iowa.

common

Price—$6

per

stock

share.

For working capital. /Office — Davenport,
Underwriter — Quail & Co., also of Davenport,
—

Iowa.

Loan

Pari-Mutuel

_~Aug. 24

*

Proceeds—For construction of plant, working
capital and general corporate purposes. Office—Prescott,
Ariz. Underwriter—Vickers Brothers, New York.

—

Underwriter—None.

Malcolm

(in denominations of $10 each). Proceeds — For
working capital. Office — 791 Main St., Holden, Mass.
Underwriter—None.

per

(upon demand) Sept. 10, 1961. Price

.

of

account

★ Ralston Purina Co., St. Louis, Mo.
Sept. 24 filed 15,000 shares of common stock (par $25)
to be offered for sale under the company's Stock Purchase Plan for eligible employees of the company and
its subsidiaries.
.4,
4
4

★

\

Pacific Telephone & Telegraph Co.
July 27 filed 1,562,267 shares 0$ common stock being of¬
fered for subscription by common and preferred stock¬
holders of record Aug. 29, 1956 in the ratio of one share
for each §ix shares (common and/or preferred stoSk)
held; rights to expire on Sept. 28. American Telephone
& Telegraph Co., the parent, owns 90.70% of the out¬
standing common stock and 78.17% of th€| preferred
stock, and intends to purchase 1,399,824 shares of the
new stock which represents its pro rata portion
of the
offering.
Price—At par ($100 per share). Proceeds—
To repay temporary borrowings and for new construc¬

the

April 20 filed 965,000 shares of capital stock.

,

Ross

(J. O.)

Engineering Corp., New York

Sept. 10 filed 19,059 shares of

common

stock (par $1)

to

be offered in exchange for common stock of John Waldron Corp. at the rate of one Ross share for each two

Waldron shares.

Offer

will

become effective

posit of at least 90% of the outstanding
of which Ross presently owns 61.53%.

(Calif. )
April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment. Proceeds—For reduc¬
tion of short-term bank loans. Underwriters—Blyth &
Co., Inc., and Hornblower & Weeks. Offering—Indefi¬
nitely postponed.

Trust Bldg.,

-of 1% shares of such stock and the balance of

Dillon, Union Securities & Co.

Pacific Finance Corp.

Underwriter—T. C. Henderson .#r€o.,
4 Inc.. Des Moines, Iowa.
.
.4
4
4v<<r

for

par

*

Co., Philadelphia, Pa.
/ Sept. 4 (letter of notification) $250,000 of 6% 10-year
renewable debentures due Sept. 20, 1966. Proceeds—To
increase loan volume.
Office—2233 North Broad St.,
Philadelphia^ Pa. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.
4

Des Moines, Iowa.

<

Proceeds

offered

.

(in denominations of $100 and $500
For working capital. Office — 2233
North Broad St., Philadelphia, Pa. Underwriter—Walnut
Securities Corp., Philadelphia, Pa.
each).

be

Erskine,

★ Reed Rolled Thread Die Co. 4.
Sept. 21 (letter of notification) $250,000 of 6% deben¬
tures due Nov. 1, 1972 through Nov. 1, 1977. Price—At

Sept. 17 (letter of notification) $250,000 of 6% renewable

Feb. 9

*

.

"

debentures payable
-—At face amount

to

waukee, Wis.

(jointly); Harriman Ripley
Co., Inc. and Stone & Webster. Securities Corp. (joint•ly); Lehman Brothers. Bids—Tentatively expected to be
received up to 11 a.m. (EDT) on Oct. 30.

*

,

City, Utah
(letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share./Pro¬
ceeds—For mining expenses. Office—223 Phillips Petrol¬
eum Bldg., Salt Lake
City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
--

program and to repay
determined b,v com-

&

April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common
stocl£a(par
$5) to be offered in units of one preferred and four com¬
mon shares.
Price—$40 per unit. Proceeds — Fof purchase of machinery and equipment. Office—New
Albany,

are

President and Treasurer of the company.
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriter—Loewi & Co., Inc., Mil¬

and Salomon Bros. & Hutzler

■

Mississippi

E.

due

,4/f/4v//:V...4:'.■ •-^,/:/.;;'4:;//'444.;

Kuhn Loeb & Co.; Eastman
-

Otis, Inc.,* New
44;:y ' v-«--444

'

4

.

,

stock, series A (par $20) and 35,000 shares
stock-(par $1), Of which 10,000 common

common

shares

writer—To be determined by competitive bidding. Prob¬
able bidders: The First Boston Corp.; Blyth & Co., Inc.;

'

located in South Central Peru, and for general corporate

4 purposes.
Underwriter — Gearhart
York. Offering—Postponed.:
•
^

be

-4-4

.

ible preferred
of

it Ohio Power Co. (10/30)
'
/
Sept. 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under-

Minerals,

June

Underwriter—To

Underwriter—Coombs & Co. of Wash¬

Racine Hydraulics & Machinery, Inc. (10/1-5)
Sept. 10 filed 15,000 shares of $1.20 cumulative convert¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.

Oct. 30.

.

4

mortgage notes.

ington, D. C., v,

•

loans.

Underwriters—Crerie &

,

Alleg¬

bonds

Juan, Porto Rico.

Pyramid Development Corp., Washington,. D. C.
July 27 (letter of notification) 300,000 shares of common
stock (par 10 cents), of which 25,000 shares are to be
-reserved for issuance upon exercise of options.
Price—
$1 per share. Proceeds—To purchase real property and

Proceeds

Inc.; The First Boston Corp.; Blyth & Co., Inc.; Kuhn,
Loeb & Co.; Eastman Dillon, Union Securities & Co., and
^Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co., Inc. and Stone & Webster Securities Corp. (jointly).
3
Bids—Expected to be received up to II a.m. (EDT) on

To.be

—

share).

Underwriter—None.

vProceeds—For construction

-bank

.

for

per

,* Ohio Power Co. (10/30)
Sept. 20 filed $28,000,000 of first mortgage
1988.

.and

($25

wv
Address—Gibsonia,

of
12-year .6% first mort¬
1968, and 220,000 shares of
stock (par $1). Price—100% of principal amount

C^., .Houston, Texas; and Dixon Bretscher Noonan, Inc.,
Z
^
•pringfield, 111.

,

and its subsidiaries to subscribe lor the
.

par

note.

Alai, Inc.

$1.75 per share for the stock. Pro¬
ceeds—For construction of fronton and related activities.

—

j working capital. Business—Hydrides of calcium, lithium,

y:

^

demand

Underwriter—Skylina

for debentures and

3
y.4.,-■/.
,

it Oakite Products,-:Inc. /'4-;//:4;:-'/f4/t4Sept. 14 (letter of notification) not to exceed 7,400 shares
of common stock (par $5) to be offered to employees.
Price
$16.15 per share on cash basis; and $14.45 per
share on instalment basis. Proceeds—For working cap¬
ital.
Office—19 Rector St., New York.
Underwriter—
None.
4-4-44■. 44 :V\4''
v4/-'4V '

(with an oversubscription' privi4lege); rights to expire on Oct.TO. Price—At a price of
•$17.50 per share. Proceeds—For construction of plant and

:

reduce

heny County, Pa.

each three shares held

! shares.

Price—Five cents per shara.

filed $1,100,000
bonds due July 1,
27

gage

,

Metal

Uranium Corp.

stock (par two cents).

mon

(par $1).- ,Price—$2.50 per share. Proceeds—For-./.V North Pittsburgh Telephone Co.
:
.♦
/
development of/oil and gas. Office—130 South Fourth
Sept, ,12 {letter of notification) 6,000 shares of common
St., Las Vegas, Nev. Underwriter—Mountain States Se- - stock to be offered to holders of common stock of record
rcurities Corp., same city.;' 4,.-,-; 4,./ ,
-4-^-s**-:uyv of Sept. 15, 1956 on the basis of one new share for each
•

Federal

Securities, Inc., Denver 2, Colo. /

—»,

S. Dickson & Co.,.Inc., Charlotte, N. C. and Mc-

stock

f

Prudential

March 21 (letter of notification) 6,000.000 shares of com¬

/United Telephone-Co. of
/

Underwriter-*

Co.

"-"4.4/. />:

-Proceeds—For mining Expenses.

Matador Oil

-

Telephone

4 : '*44.•:>"/ f

share.

'

;Aug. 24 (letter of notification) 120,000 shares of

.

Proceeds—To acquire physical properties and franchises
pf the Norwood and Marshville (N. C.) exchanges of the

-

properties; repayment
vances; exploration and development and workir^j/^pital. Office—508 Peyton
Bldg.,/Spokane, Wash. Underpayment

rights

-

Satanta

..'44;-

-

urer, \ol Tucson, Ariz.- Statement effective Sept. 14. jNeb.; Cruttenden & Co., Chicago, 111.; Boettcher & Co.,
/-• North Carolina Telephone Co.
Denver, Colo.; and Barret, Fitch, North & Co. and Burke
July ;24 filed 828,572 shares of common stock (par $1)
MacDonald, Inc., both of Kansas City, Mo/
;y?/// ./being offered for subscription by common stockholders
at the rate of two shares for each share held as of
*4 Mascot Mines, Inc. --.'4 4" ''*-4 "y^y y.y
4
Aug. 6;
/July 9

system »of

;None.?-

• NorthAmerican Finance Co., Phoenix, Ariz. ..4
•/July 9 filed 500,000 shares of class B non-voting common
stock (pa): $1). Price—$3 per share. ; Proceeds—To ex.pand business operations. Underwriter—None, sales are
to be made, by Eugene M.
Rosenson, President, of Phoe¬
nix, and Marcus T. Baumann, Vice-President and Treas¬

^debentures due 1966 and 135,000 shares of common stock

;

•'■■■'

upon

common

de¬

stock,

Underwriter—

None.

.

„

Samson Uranium, Inc., Denver, Colo.
Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price—At par
(10 cents per share). Proceeds
—For core drilling, including geological research and
core assays; for mining shaft; to exercise purchase of
option agreement on additional properties; for working
capital and other corporate purposes. Underwriter —
Indiana State Securities Con>. of
Indianapolis, Ind., for
offering to residents of Indiana.
.' ^

Seaboard Finance Co. (10/10)
Sept. 18 filed $15,00(),000 of sinking fund notes due Oct.
1, 1971. Price—To be supplied by amendment. Proceeds
—To
ton

reduce

bank

loans.

Underwriter—The

First Bos¬

Corp., New York.

Security Loan & Finance Co.
July 17 (letter of notification) 200,000 shares of common
(par $1). Price—$1.50 per share. Proceeds—For

stock

expansion program.

Office—323 So. State St., Salt Lake

Continued

on

'page

52

*

52

The Commercial and Financial Chronicle

(1332)

Suburban Gas Service, Inc.
Sept. 10 (letter of notification) 15,780 shares of common
stock (par $1). Price—$19 per share. Proceeds—To sell¬
ing stockholders. Office—60 East Foothill Blvd., Upland,
Calif. Underwriters—Kidder, Peabody & Co., Inc., New
York, N. Y.; Wagenseller & Durst, Inc., Los Angeles 14,/
Calif, and William R. Staats & Co., Los Angeles 14, Calif.

...

Thursday, September 27,1956

•

Continued from page

51

*

Underwriter—Whitney & Co., also of Salt

City, Utah.
.Lake City.

Southern Bell Tel. & Tel. Co.

(10/8)'

"Sept.

18 filed $60,000,000 of 27-year debentures due
Oct. 1, 1983. Proceeds — For repayment of advances to

ment.
eral

market. Proceeds—For. investment. '
Co. Inc.; Morgan Stanley
:77777/::7777<'7'■
Bids—Tentatively expected to be received up to
it Swears & Wells Ltd. (England)
11:30 a.m. (EDT) on Oct. 8.
r
7 7M'f Sept. 14 Chemical Corn Exchange Bank, New York "filed

stock

per share.
Proceeds—To pay bank loan.
Underwriter — The Robinson-Humphrey Co., Inc., At¬

$13

persons,

lanta, Ga.

■

the

Toronto

Stock

change or by private sale.
Proceeds—To A.
the selling stockholder. Underwriter—None.

\^7'':7777/7;;/''

P.

-

(See also next paragraph).

.

v

,r

'

England Telephone Co. (10/10)
Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
of new capital stock (par $25) to be issued to American
Telephone & Telegraph Co., which owns 21.61% of the
outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone &. Telegraph Co.
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc.; White, Weld & Co.;
Putnam & Co.; Chas. W. Scranton & Co., and Cooley &
Co. (jointly); The First Boston Corp.; Salomon Bros. &
Hutzler.
Bids—Expected to be received up to 11 a.m.
(EDT) on Oct. 10. (See also preceding paragraph.)
•

Union Gas Co.,

Southern

Dallas, Texas

Underwriter—Eaton & Co., Inc., New York.

—Federal Investment Co.,

Ex¬

holders

Wheland Co.,

/

.

.

^7"'

Manufacturing Co., Roanoke,

Chattanooga, Tenn.

expected until sometime this Fall.
White Sage Uranium

-

-

Z t

.7/77

7

Corp.
(letter of notification) 15,000,000 shares of
capltal stock.
Price—At par (one cent
per share).
Proceed®
—For mining expenses.
Office—547 East 21st South
St.,
Salt Lake
City, Utah.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
Feb. 13

(10/2)

<

;

Wildcat Mountain
Corp.. Boston, Mass.
13 filed $800,000 of 6%
subordinated cumulative
debentures due Dec. 1,
1976, and 6,000 shares of

Aug.

common

stock

(no par)

ture and

Stone

to be offered in units of
three shares of stock. Price

$400 deben¬
$500 per

a

—

unit.7
Proceeds—For construction and
working capital. Busi¬

ness—Mountain

III.

recreation

center.

Underwriter—None;

offering to be made by officers and
agents of company."
it Wilks Precision Instrument
Co., Inc.
Sept. 5 (letter of
notification) 100,000 shares of class A •

Aug. 20 filed 50,000 shares of class A common stock (par
$1). Price—$6.50 per share. Proceeds—To reduce bank

Underwriter—None.

'%

Co., Atlanta, Ga.; and Equitable Securities
Corp., Nash¬
ville, Tenn. Offering —
Temporarily postponed. Not

com¬

Washington, D. C.

program. Underwriters—White, Weld & Co. and
& Webster Securities Corp., both of New York.

Ulrich

v

—

1, 1956 at the rate of one new
(with an oversubscription
privilege); rights to expire on Oct. 17. Price—To be
supplied by amendment. Proceeds — For construction

on

/

May 23 filed $2,000,000 of convertible subordinated
de¬
bentures due June
1,1976/hnd 136,000 shares of commonv
the company's account knd
61,000 shares for a selling
stockholder.
Price
To be supplied*
by amendment.
Proceeds—Together with proceeds from private sale of c
$1,500,000 4%% first mortgage bonds and
$900,000 of
3-year unsecured 4%% notes to a
group of banks, will
be used to retire
outstanding series A and series B 5%
first mortgage
bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &

Oct.

record

./

1

•

Bldg., /
City, Utah. Underwriter—Us-Can
Securities,
Inc., Jersey City, N. J.

share for each 16 shares held

the basis of one new share for
each 12 shares held (with an oversubscription privilege);
rights to expire on Oct. 30. Price—$18 per share. Pro¬
ceeds—For
additions and
improvements to property.
Sept.. 26

of

retire-

Underwriter—Kidder,

Salt Lake

Sept. 10 filed 441,250 shares of common stock (par 50
cents) to be offered for subscription by common stock¬

(10/10)

note.

Western States Natural Gas Co.

share. Proceeds

Transcontinental Gas Pipe Line Corp.

Sept. 14 filed 171,187 shares of common stock (par $1)
be offered for subscription by common stockholders
record

per

demand

Aug. 24 (letter of notification) 500,000 shares of
common
stock (par 10
cents). Price—50 cents per share. Proceeds
—For development of oil and
gas.: Office—Felt

—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter

to

of

Price—$1

secured

,

Scott,

Togor Publications, Inc., New York
>
March 16 (letter of notification) 299,700 shares of
stock (par 10 cents).

of

Peabody & Co., New York.

7

mon

debentures, series A, due 1960; balance for

ment

Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.

m

New

+ Southern

outstanding

4%

^ Texas Eastern Transmission Corp. (10/10)
• Southern New England Telephone Co. (10/10)
Sept. 20 filed 150,000 shares /of preferred stock (paf
Sept.-19 filed 679,012 shares of. capital stock (par $25) v
$100). Price—To be supplied by amendment, Proceeds—
to be offered for subscription by stockholders of record
For gas expansion and reconversion program. Under¬
Oct. 1, 1956 at the rate of one new share for each eight
writer—Dillon, Read & Co., Inc., New York.
shares held; right to expire on Nov. 2. Price—$30 per
share. Proceeds—To pay advances from American Tele¬
Thermoray Corp.
June 29 (letter of notification) 380,000 shares of com¬
phone & Telegraph Co. (approximately $15,800,000) and
mon stock (par 10 cents).
for property additions and improvements.
Price — 75 cents per share.
Underwriter
—None.

common

share. Proceeds—For the
hearing instrument designed

per

a

■

★ Texas Calgary Co., Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock (par 25
Price—At market from time to time on the
or

sale of

Walt Disney Productions,
Burbank, Calif. (10/3)'
Aug. 24 filed $7,500,000 of convertible subordinated
debentures due Sept. 1, 1976. Price—To be
supplied by
amendment.. Proceeds—$243,740 to redeem

cents).

Exchange

Price—$3

•

receipts for 83,333 "B" ordinary
registered shares and for 83,333 "C" ordinary registered
shares of this English corporation.

Stock

y

hard-of-hearing. Office—1353 Mesita Road, Colo¬
Springs, Colo. Underwriter—Miller & Co., Tulsa,
okia.
,■»..' 7; 7/;• /•.
K •

depositary

American

Corp., 26 Fed¬

./

for the

.

$10 par common stock of Progressive Fire Insurance Co.;
and 25,000 shares are to be offered to certain other per¬
sons.
Price—To public, $14.50 per share; and to certain

Securities

,

rado

& Co.

American

(par $1).

manufacture and

able bidders: Halsey, Stuart &

^ Southern General Insurance Co., Atlanta, Ga.
Bept. 24 filed 95,714 shares of common stock (par $5), of
which 50,000 shares are to be offered
publjcly; 20,714
"shares are to be offered in exchange for 10,357 shares of

,

Vicon, Inc.
Aug. 24 (letter of notification 100,000 shares of

it Supervised Shares, Inc., Des Moines, Iowa
Sept. 24 filed 300,000 shares of capital stock. Price—At

parent, American Telephone & Telegraph Co. Under-_
writer—To be determined by competitive bidding. Prob¬

its

Underwriter—Venture

St., Boston, Mass.

■■

loans

.7

Southern Union Oils

Aug. 24 filed

Ltd., Toronto, Canada

750,000 shares of capital stock (par $1).
Proceeds—To selling stock¬

Price—64 V2 cents per share.

holders.

Underwriter—None.

Southwestern Resources, Inc., Santa Fe, N. M.
June 8 filed 1,000,000 shares of common stock (par 25

•cents). Price—$5 per share. Proceeds—To exercise options, purchase additional properties and for general
corporate purposes.
Underwriter—Southwestern Secu¬
rities Co., Dallas, Texas.

of

whicjj 211,681 shares

shares

to

are

be

are to

offered

stock

(par $1),

all of New York.

*

by them.
of Anniston, Ala., is President.

Elvin C.

State

Automobile

•

McCary,

Proceeds

&

preferred stock and

one

share

of

new

pre¬

ferred for each 10 shares of common stock
held. Price—
-At par ($10 per share). Proceeds—To
repay a $1,400,000
note held by Equity General

Corp., a subsidiary of
Equity Corp.; to liquidate existing bank loans and for
-general" corporate purposes.
Underwriter—None, but
.Equity General Corp. has agreed to purchase at
par,
:pius accrued dividends, up to 290,000 shares of the new
.preferred stock not subscribed for by stockholders. Lat¬
ter

already owns 137,640 shares (3.23%) of
Sterling com¬
stock, plus $1,800,000 of its convertible debentures,

mon

first

—

■■./•

Oil, Inc.

iij

to

For

—

development

Angeles,

Co., New York.

Calif.

Underwriter—S.

common

stock

and

/:':

one

common.

Price—$11

per

unit.

be

Co.

offered

common

to

holders

stock

of

purchase

common

lieu

of

tion of

45ept. 14 filed 200,000 shares of

lumbia Securities

Broadcasting Co. (10/2-4)

•

Price—To/ be

supplied

common

stock

(par $1).

by amendment.
Proceeds—To
.George B, Storer, President of company. Office—Miami
Beach, Fla. Underwriter—Reynolds & Co., New York.




Venezuela

repay

bank- loans
&

and

Co., New

for

working

capital.

York.

that following proposed
Oil Corp., American
Petrofina,
Inc.* will offer to stockholders the
opportunity to sub¬
scribe to about 1,000,000
shares of "A" stock of American:
Petrofina. Price—$11
per share.

Underwriters—White,
Weld & Co.; Blyth &
Co., Inc.; and Hemphill,
Noyes &
Co.
Offering—Expected in October.
•

Appalachian Electric Power
May 31 it

was

Co.

announced

company^ plans to issue} and
$24,000,000 of first mortgage bonds.
Underwriter—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union Secu¬
rities Corp. and
Kuhn, Loeb & Co. (jointly); The First

sell

in

Boston

December

Corp.; Harriman Ripley & Co., Inc.
Acceptance Corp., Boulder,

Boulder

Co., Inc., of Florida, Miami, Fla.

July 16 it
sell

Fund, Inc., Boston, Mass.

Sept. 4 filed 200,000 shares of capital stock (par $1).
Price—Initially at $25 per share.- Proceeds—For invest¬

(10/22-26)

merger with Panhandle

Diamond

Securities

Inc.

reported company plans early
registra¬
year convertible debentures.
Pro¬

American Petrofina, Inc.
Aug. 30 it was announced

Mines, Inc., Miami, Fla.
Aug. 31 filed 1,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For
exploration
and mining operations in Venezuela.
Underwriter—Co¬
Venture

was

Underwriter—Allen

right to buy Vendorlator common stock. Warrants are
exercisable until Sept. 30, 1960.
Price—$7.33 per share.
Proceeds—To redeem Vendorlator debentures.
Under¬
:
writer—None.

-•

"7..

$4,000,000 15 Yz

ceeds—To

their

Stevens (J. P.) & Co.,
Inc., New York
June 28 filed $30,000,000 of
debentures due July 1, 1981.
Erice—'To be supplied by amendment.
Proceeds—To re¬
duce short-term loans, to
retire $950,000 of 4%% first
:.mortgage bonds and $368,679 of 6% preferred stock of
.subsidiaries.
Underwriter—Goldman, Sachs & Co., New
York.
Offering—Indefinitely postponed.
• Storer

packing firm.
Un¬
& Co.; Glore Forgan & Co.
Hallgarten & Co., all of New York
City. Offering—

Sept. 20 it

stpek (par $2.50)
Manufacturing
in

ex¬

Business—Meat

Prospective Offerings

Vendorlator
warrants

program.

* ACF-Wrigley Stores,

Proceeds—For

Universal Fuel & Chemical Corp.
May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per
share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer— Langley-Howard,
Inc., Pittsburgh, Pa.
it Vendo Co., Kansas City, Mo.
to

20-year sinking fund de¬
be supplied
by amend¬
redeem
presently outstanding

—

working
capital., Office
Gibraltar Life Bldg., Dallas, Tex. /
Underwriters—Muir Investment Co., and Texas National
Corp., both of San Antonio, Tex.
I

Sept. 20 filed 32,778 shares of

of

Price—To

•
Ziegier Coal & Coke Co.
Sept. 7 (letter of notification)
12,500 shares of commdni
/ stock (par $10). Price—$18
per share.
Proceeds
For
working capital. Office—231 So. La Salle
St., Chicago, 111.
;
Underwriter—Tucker, Anthony & Co., New York, N. Y.
To be placed
privately.

—

<

7

;

Proceeds—For improvements and
additions to
property. Office—128 East New
England Ave., WinterPark, Fla.
Underwriter—Security Associates, Inc., Win¬
ter Park, Fla.

(par 15 cents) to be offered in units con¬
share of preferred and one-half share of

sisting of

Bethesda\Ave.*.

'

*

share).

offered

Fuller

1976.

indebt- *

Winter Park
Telephone Co., Winter Park, Fla.
Aug. 24 (letter of
notification) 3,000 shares of 5%
cumulative preferred stock.
Price—At par ($100 per

(par 10

D.

'7>

•

Underwriter—None.

Indefinitely postponed.

*'•

Price—$1.25 per share.
and
exploration costs.

Office—4821

derwriters—Smith, Barney

i 10/11)

Hallgarten & Co.

due

present

on

equipment and~inyentory

Proceeds, — To
mortgage bonds, to repay bank loans and for

pansion

and general corporate
Harriman Ripley & Co. Inc.,

Universal Finance Corp.
Aug. 24 (letter of notification) 27,272 shares of 70-cents
cumulative preferred stock (par $5) and 13,636 shares of

series B

series B

16

capital.

ment.

working capital

United Cuban

Office—Los

Sterling Precision Corp., New York
V
July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription
i>y holders of outstanding common stock and series A

w

each

working

bentures

held; rights to expire on Oct. 2, 1956. Price—At
($100 per share). Proceeds—To repay bank loans,

equipment,

shares sold

Underwriter—None.

-of new

for

of additional

Wilson &f Co., Inc.
Aug. 28 filed $20,000,000

1956 on the basis
shares of common

publicly, 573,625 shares will be issued in exchange for
stock of Compania de Formento Petrolero Ted
Jones,
S. A., 200,000 shares sold to S. D. Fuller &
Co./and 25,000

Association."

preferred stock in the ratio of one share
preferred stock for each four shares of series A

Sept. 17,

Aug. 29 filed 2,798,625 shards of common stock
cents), of which 2,000,000 shares are to be

/Price—Proposed maximum is $7.50 per share. Proceeds
—To obtain a certificate of
authority from the Insurance
^Commissioner of the State of Indiana to
begin business.

^and

share

Underwriter
■New York.

:/

Insurance

preference

record

for

Bethesda, Md.

filed

purposes.

•

"Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
the

one

Proceeds—For payment

edness; purchase
and

Offering—Postponed indefinitely.

stockholders of

mon

par
for

Insurance Co., Indianapolis, Ind.
July 3 filed 200,000 shares of common stock (par
$2.50)
To be offered to agents and
employees of Automobile
at

28

share.

per

stock

Statesman

ers

stock (par 20
cents) and warrants to buy 50,000-*
shares of class B common
stock (par 10 cents). Price—
Of class A
stock, $2 per share; and of class B
stock, $1-

318,098 snares of convertible preference
stock 4% series, being offered for
subscription by com¬
of

in

to dealers for sales effected

common

United Aircraft Corp.

be offered publicly 238,954

exchange for the class A
jstock of Capital Fire & Casualty Co. and common stock
>of Allied Investment Corp.
Price—$2 per share. Pro¬
ceeds—For purchase of stock of Capital arid Allied firms
and for purchase of U. S. Government bonds. Under■writer—None, but a selling commission will be allowed

working capital. Business—E^rthmoving
Underwriter—White & Co., St. Louis,

Union Chemical & Materials Corp.
May 25 filed 200,000 shares of common stock (par $10).
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
7—Allen & Co., Bache & Co. and Reynolds & Co., Inc.,

Aug.

common

for

;;;Mo.>/ 777777/'7;77777vi 7/777

Southwide Corp., Anniston, Ala.

Sept,; 12 filed 450,635 shares of

and

equipment, etc.

:

($6

was

per

share).

stalment

loan

Colo.

announced company
plans to offer and
of its common stock.
Price—At

3,000,000 shares

par

Proceeds—To construct hotel; set
up in¬
and for working capital and

company;

Volume 184

.Number 5572.«?.The Commercial and Financial Chronicle

general corporate

purposes. Underwriter—Allen Invest¬
Co., Boulder, Colo. Stock to be sold in Colorado.

ment

held.

October

in

some

Underwriter

stock.

common

Alstyne, Noel & Co., New York.
Carolina

Power

&

—.

Hartfield Stores,

'Van

/

-

^

300,000

Light Co.

$10

announced company

was

Sept. 10 it
sell

announced

was

170,000 shares of

per

"1

>/*»■

Offering—Probably in October.

Manufacturing Co.
J;
July 16 it was reported company may be considering sale
of about $1,000,000 to $1,500,000 bonds or debentures.
Underwriter—May be G. H. Walker & Co., St. Louis and
New York.

(10/23)

Territory

•/

.

it Hawaii

(Territory of)
on

Hawaii

of

,

Michigan Bell Telephone Co. (12/4)
Sept. 24 the directors authorized the company to issue
and sell $30,000,000 35-year debentures, due Dec. 1, 1931.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
Expected to be received on Dec. 4.

,

from the

highway

revenue

$12,500,000

Mobile

bonds, series A, due semi-annually from March 1, 1958
to Sept. 1, 1986, inclusive.
V/ ;>./

plans to issue and
stock. Proceeds—For con¬

company

Merrill

★ Hawaiian Electric Co., Ltd..

to

7

Sept. 14 it

Lynch,

Pierce, Fenner & Beane and Stone &
Webster Securities Corp. (jointly); Glore, Forgan & Co.;
The First Boston Corp.; Lehman Brothers, Bear, Stearns
&
Co.
and
Eastman
Dillon, Union Securities & Co.
(jointly). Bids — Expected to be received on Oct. 23.
Registration—Planned for Oct. 1.
•

J

ceeds

To

selling; stockholders.

Office

Wisconsin

—

it Chicago- fit North* Western Ry.. f 10/4)
will

be

received

by

the

company

'

Probable

bidders:. Halsey,

Salomon Brog. & Hutzler.

•

Stuart

Co.

&

additional
the basis of one

shares of common
share for each

30,000

on

new

to 55,000

and

European Coal and Steel
Community, Luxembourg' ./'.J
July 9 this Authority announced that an American banking group consisting of Kuhn, Loeb & Co., The First
Boston Corp; and Lazard Freres & Co. has been ap¬
pointed to study the possibility of a loan to be issued

it Commonwealth Edison Co.

(10/17)
Sept. 25 it was announced registration with the SEC is
expected on Sept. 27 of 400,000 shares of non-convert¬
ible preferred stock (par $100). Price—To "be supplied
by amendment. Proceeds—For new construction. Under¬

on

additional shares of capital stock (par $25) on
of one new share for each six shares held:

and

surplus/ Underwriter—Merrill Lynch, Pierce, Fen¬

ner

& Beane,

New York.

National Steel Corp.

March

12

the

company

announced that it is estimated

expenditures planned to start in

that total construction

to be completed in mid-1959 will
minimum of $200,000,000.^ Underwriters—

the current year and

The time, amount and terms

the American market.

announced Bank plans to offer to its

was

rights to expire on Oct. 24. Stockholders will vote Oct. 3
/on approving proposed increase in capitalization. Price
—To
be
named later;
Proceeds—To increase capital

Hallowell, Sulzberger & Co., Philadelphia, Pa.; ^ V

/

:

basis

the

High Authority of the

'

17 it

stockholders of record Oct. 5, 1956, the right to subscribe

1,000,000 shares, in order to provide
options (to officers and employees), and for future fi¬
nancing. Underwriters—Weill, Blauner & Co., New York,

Inc.;

»

•

Sept.

400,000 shares to

-

elusive.

about Nov. 1, 1956 the right

—

July 25 it was announced stockholders on Aug;. 10 will
vote on increasing the authorized common stock from

noon

( COT)/on/n Oct/ 4 at/'Room^MOO, 4Q0 >West; Madison ;•
Street; Chicago 6,7;111.,: for the purchase from it of $3,360,000 equipment trust certificates to mature in 15
equal annual installments from Nov. 1, 1957 to 1971, in->-

'

(11/1)
plans to offer to its

company

stockholders

/ Herold Radio & Television Corp.

'

to

up

Corp.
or

-

Rapids,*Wis/Undervvrtter-r-Lpewi & Co., Milwaukee, Wis.
Bids

for

(par $5)

on

Hawaiian Telephone Co.
Sept. 10 it was announced stockholders will vote Oct.
15 on
approving proposed sale of 263,400 additional
July 30 it was announced that company plans to acquire
shares of capital stock to stockholders on the basis of
a
15% participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii - one new share for each 10 shares held as of Nov. 1, 1956;
cable and, if approved by the directors on Aug. 16, will
rights to expire on Nov. 21.
Price —Somewhat below
market price prevailing at time of offering.
be probably be financed by a debenture issue. Hawaiian
Proceeds
—For capital and surplus account.
Underwriter—MorTelephone Co.'s investment will be approximately $5,- ;
/ 500,000. Underwriter—Probably Kidder, Peabody & Co.,, gan Stanley & Co., New York.;
7 New York.- /■,
'
■*
:
National Newark & Essex Banking Co. of
Newark
(N. J.)
(10/4)

.

stock/Xpai* .$1) >' Prlcc^-For preferred, par and
dividends; and for common, $6 per share, Pro¬

—v

subscribe

stock

stock

mon

Wisconsin Motor Transport Co.
Sept. 10 company, filed a request with the ICC for au¬
thority to issue 34,600 shares of 6% cumulative con¬
vertible preferred stock (par $10) and 67,500 shares of
accrued

•

announced company plans to offer to its

was

Service

announced

was

stockholders

common

77,000 additional shares of com-/. 10 shares held (with an oversubscription privilege).
Proceeds
For' construction program.
Underwriters —
(par $20).-Proceeds — For construction pro¬
Av" /;■
•
gram.
Underwriter—None. Offering—Expected in near s •None.-*'v,
future. :/•
/////. .,v/-,' /•/./ 7
.;■!.
7 v.
National Bank of Detroit (11/1)

common

Central

Common

Gas

Sept. 7 it

struction

program. Underwriter—To be determined by
competitive bidding. Probable bidders: Blyth & Co., Inc.,

;J>

•

(10/9)

Oct. 9 for the purchase

of

53

16 months.

Haskelite

•Bids will be received

common

''4

was

New York.

Bids—Scheduled for Nov. 27.
Central Illinois Public Service Co.

Inc.

reported company plans to issue and sell
shares of common stock.
Price—Expected at
share. Underwriter—Van Alstyne, Noel & Co.,

Aug. 27 it

~

(11/27)
plans to issue and
sell $15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob- ..
able bidders: Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
<& Co. and The First Boston Corp. (jointly); Equitable,
Securities Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beand (jointly).
March 22 it

Merrill Lynch,

Pierce, Fenner & Beane acted as
clearing agent in previous offering to stockholders.

Aug. 27 it

•

Metropolitan Edison Co.
July 2 it was reported that company is considering the/*
sale of $10,000,000 first mortgage bonds due 1986. Under-*-;
writer—To be determined by competitive bidding. Prob-. 7
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
V6*f Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Co. (jointly); The First Boston Corp. Bids—Not ex- ,t
pected to be received until December. Company presently
plans to issue and sell $22,000,000 of bonds in the next

647,000 additional shares of common stock (par $5) early
in 1957 on the basis of one new share for each 15 shares

•.

Burndy Engineering Co., Inc., (Conn.)
was Reported company plans to issue and sell

.,

(1333)

writers— The First Boston Corp.* and Glore, Forgan &
■
' *, \*

will

loaned to firms in the Community for

Kuhn,

it Cosden Petroleum Corp.

mines,-coking plants, power plants and iron ore mines.

The First Boston Corp.

Co., both of New York.

,

c£tept. 20 it

was announced company has agreed to pur¬
Col-Tex
Refining Co. from Anderson-Prichard
and Standard Oil Co. of Texas, a subsidiary of

chase

June

Standard

Oil

Co.

registration

days.; .As

of

of

The

for is50,000 shares of
purchase is subject to SEC

some

com¬

stock to the public. Underwriter—Not yet named.
Glore, Forgan & Co., New York, previously underwrote
Anderson-Prichard financing.
^
v;' / 7 .

Delaware Power & Light Co.

it

13

reported

—For

construction

company

Underwriter—To

program."

Hutzler

•

plans to raise about
$8,000,000 through the sale of preferred stock. Proceeds
was

be

early in 1957.

•

'

».

4

;

Merrill

Lynch,

/',; ■;.;

-

Pierce,

/r;

•;

Fenner

1976.

&

'

•

'

Co. and

Flair Records Co.

t

Co., Salomon Bros. & Hutzler, Eastman Dillon, Union
and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.

&

Securities & Co.

Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn. Loeb & Co., Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co. (jointly);
Lehman Brothers and Bear, Stearns & Co.
(jointly).
Amount and timing has not yet been determined (prob¬

•

Aug. 13 it

plans to issue and sell

corepanv

50,000 shares of common
Price—$2 per share. Underwriter—Foster-Mann,
* ?■ •7^%'*'''; kV'
Inc., New York.
-"v/' ■' / V* 1 •7
- "■" *
stock.

,

a'-"

i

i

■

Food Fair Stores,

V Aug.

28

...

4

\

x

•

4

.j

'

stock

to increase

the

this company.

and sale of knitting

•

Inc.J/;7/;.7.77^//~-7../7»4...//:

stockholders/voted

(no par) of

-

indebtedness from
crease H

$35,000,000 to $60,000,000 and to in¬
authorized/common
stock from
5,000,000

the

/

/ shares to 10,000,000 shares-Underwriter—Eastman Dillon,
Union Securities & Co., New York. "

,

it General Aniline & Film Corp.
"Sept.;21 it

was

I

;

.

7

of; the

vested

.

stock which will then be held.

General
--

Public

Utilities

.

7

Corp.

Sept.

12,

Public

A.

stockholders

F.

„

are

going




be

offered

»

Foremost

that

the

approximately

-

Proceeds — To Foremost
Underwriter—Allen & Co., New York.

July 19 it was announced that this company may underfinancing for one or more real estate companies.
Proceeds — For development of branch stores and re¬

gional shopping centers. Underwriters—Goldman,
& Co. and Lehman Brothers, New York.
Merrill

Petroleums

Ltd.

New

York.

Sachs

and sell
&

& Hutzler, East¬
Wood, Struthers

Power & Light Co.

Brothers and

Salomon Bros. & Hutzler (jointly);
Securities & Co. and White, Weld

Eastman Dillon. Union
&
•

:

Co.

Boston

(jointly); Equitable Securities Corp.;
Corp.; Merrill Lynch, Pierce, Fenner

Co.,

The First
& Beane.

it New York, New Haven & Hartford RR. (10/i6)
are expected
to be received by the company on
Oct. 16 for the purchase from it of not to exceed $2,-;

Bids

786,750

equipment trust certificates.

Halsey, Stuart & Co.

Probable bidders:
Hutzler.

Inc.; Salomon Bros. &

Northeast Airlines,

Inc.

it was reported that part of the cost of new
equipment will be provided by banking or other similar
credits and the balance by an offering of securities to
existing stockholders or to the pqblic or both. Under¬
Sept.

1

writer—Probably Lee Higginson

(Canada)

Sept. 6 it was reported company plans to issue
some
debentures.
Underwriter—White, Weld

Halsey, Stuart & Co.

$5,000,000 of first mortgage bonds.

man

.-

-take

Corp.
President, announced

to

*

Probable bidders:

plans to issue and
Underwriter—
To
be determined
by competitive biddimg.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh•

; /

plans to issue

Co.

sell

May Department Stores Co.

•

Utilities

Tegen,

"

bidding.

New Jersey

shares of common stock of Lucky Stores, Inc.
eight Lucky shares for each 100 shares of
stock held (with an oversubscription privi¬

Dairies, Inc.

,

April 2/ A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock. Proceeds—To
repay bank loans, etc., and for construction program.
General

...

nc*v

Sept. 12 it was announced company

lege). Price —$12 per share.

Oct. 4, plans to sell
shares of new class 3

upon

2,983,576

10

Business—Manufacture

V;

company

of first mortgage bonds early in
Underwriters — To be determined by competi¬

(jointly); Lehman Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
&

t

at the rate of

announced that the Attorney General of

corporation to be voted

certain

*

announced

Inc.; Kuhn, Loeb & Co., Salomon Bros.
Dillon, Union Securities & Co. and

Lucky Stores, Inc.
Aug. 28 the directors of Foremost Dairies, Inc., voted
to offer Foremost's stockholders the right to subscribe
for 630,000

,

v; ;

77 the United States, following reclassification of \he shares
of this

tive

was

$10,000,000

man

Merrill Lynch, Pierce, Fenner

•

sell

1957.

machines, etc. Bidders—May include

Kidder, Peabody & Co. and
authorized •.* & Beane (jointly).

it

3

and

.

Department of Justice, Office of Alien Property,
Room 664, 101 Indiana Avenue, N. W., Washington 25,
D. C., for the purchase from the Attorney General of
ithe United States of 158,025 shares (63.21%) of capital

/

•-/

reported

was

England Power Co.

New

Jan.

at the

to residents of New York State

This would be followed by a $20,000,000
issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer — May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.: Kuhn, Loeb
first mortgage bond

Boston Corp. and

Lieberknechi, Inc., Laureldale, Pa. (10/10)
will be received up to 11 a.m. (EDT) on Oct.

Corp., Lawrence Electric Co., Haverhill Electric
Amesbury Electric Light Co., into one company

1956.

during

--

Bids

plans to merge
County Electric Co., Lowell Elec¬

tric Light

—

son-Humphrey Co.,, Inc.,/Atlanta, Ga.; Merrill Lynch,
Fierce, Fenner & Beane, New York; and Courts & Co.,
Atlanta, Ga.
- •
!y •-/
V/.//////:-:/'

;

England Electric System

3, 1956, it was announced company

its subsidiaries, Essex

ably not until first half of 1957).
Sept. 26, the bank offered to its stockholders of record
Sept. 25 the right to subscribe for 200,000 additional ?Lee Offshore Drilling Co., Tulsa, Okla.
shares of capital stock (par $10) on a 2-for-7 basis; rights / Aug. 20 it was reported company plans registration in
to expire on Oct. 15. Price—$35 per share.
Proceeds—
September of $2,500,000 of convertible class A stock.
To increase capital and surplus.
Underwriter—Rauscher, Pierce & Co., Dallas, Texas.
Underwriters—Robin-

•

New

Jan.

City Power & Light Co.
April 24 stockholders approved a proposal increasing
bonded indebtedness of the company by $20,000,000. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

„

Gas

was

ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers- and Eastman
Dillon, Union Securities &,Co.f (jointly); ^
;
>

Beane

'

//;,

Co.; Harriman Ripley & Co. Inc.; and

&

late this Spring

Kansas

National Bank of Atlanta, Ga.

First

and

a

Pipe Line Co. of America
reported company plans to issue and sell
$35,000,000 of first mortgage bonds due
Underwriter—If determined by competitive bid-

Feb. 20 it

was

(jointly)./

.

de¬

termined by comeptitive
bidding.
Probable " bidders:
White, Weld & Co. and Shields & Co. (jointly); Kidder,
Peabody & Co.; and Harriman Ripley & Co., Inc. (joint¬
ly); Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.
(jointly): Merrill .Lynch,-Pierce, Fenner & Beane: Leh¬
man Brothers; W, C. Langley & Co. and Eastman
Dillon,
Union Securities & Co. (jointly); Blyth & Co., Inc., and
The First Boston Corp( jointly). Offering—Not expect¬
ed until

it

to

Loeb

Natural

,/

reported company may in the Fall do
public financing. Proceeds—For expansion. Un-

25

.

mon

Aug.

amount

Proceeds — To be
expansion of coal

/ Jersey Central Power & Light Co.
•: V-Sept. 12, it was announced company plans to issue mid
sell $8,000,000 of first mortgage bonds.
Underwrite**—
To
be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co.; The First Boston Corp.; White, Weld & Co.; East¬
man
Dillon, Union Securities & Co., Salomon Bros. &

the stock which will require about 60
of tbe/contract, Anderson-Prichard and

part

'Standard of Texas have agreed to sell the Cosden

market conditions.

/ derwriter—Lee Higginson Corp., New Yofk.

California,

stock.

common

-

-

on

Hudson Pulp & Paper Corp.

•,

Oil Co.

Cosden

depend

Northern

July

Corp., New York.

Natural Gas Co.

19 it was reported

company plans to finance
Continued on page
■

-

its
54-

54

(1334)

The Commercial and Financial Chronicle

Continued from page 53

rJL956

construction

consisting of shares held in the treasury and by certain
stockholders. Underwriters—Morgan Stanley & Co. and
F. S. Smithers &
Co., both of New York. Offering—Ex¬
pected in September.
•

(costing

program

about $40,000,000)
through issuance of debentures and treasury funds in
latter part of year.
Underwriter—Probably Blyth & Co.,

by competitive bidding.

ders:

First

Underwriter

in

connection

Public

as

ties.

Co., Salomon Bros. &
Union Securities & Co.
received

be

on

with

subscription

contracts

by competitive bidding.
Probable bidders:.
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Secu- rities & Co.; Equitable Securities Corp. and Drexel & Co.
(jointly); Lehman Brothers; Harriman Ripley & Co.

was

Electric

& Gas

?

Co.

announced

that

new

construction.

'

.;7

at

Puget Sound Power & Light Co.

soon.

to

Aug. 13 it

was reported company
stock to the

000,000 of

thai

up to $60,000,000
reduced through

in

plans to sell about $32,organizing companies and

common

arrangements

vestors

well

as

on a

the

as

!

expected to be made to borrow
revolving bank loan which will be
sale

of

bonds

the general
public.
new

power

$217,400,000.

to ^institutional

in¬

Proceeds—To pay,
project to cost an .esti¬

Palisades Amusement
Park, Fort Lee, N. J.

Aug. 21, Irving Rosenthal, President,

■j

announced that
company plans to purchase another
amusement park and
merge the two and then sell stock
to

company will

file

soon

'(Del.)

President,

preparatory to

«

To

was

Electric

be

by competitive
biddings Probable
Halsey, Stuart & Co. Inc.; Merrill
Lynch, Pierce,
Fenner &
Beane, Eastman Dillon, Union
Securities &
Co. and White, Weld
& Co. (jointly);
Equitable Securi¬
ties Corp.; The First
Boston Corp.; Harriman
Ripley &
Co? Inc.;
Kuhn, Loeb &
-

Co.

,

was

tures.

Underwriter—The

First Boston

i

540,651.75 shares

of

share.

Pittsburgh Rys.

I. Pocahontas
July 27 it

was

Fuel Co., Inc.
(.
announced that

Co.

/

Price—About

Sept. 25
his

R.

Ford

retirement in

1937

away

Prior to

he

was

a

partner in Tucker,
Anthony & Co.

Now With Waiston Co.
(Special

SAN

to Thz Financial

FRANCISCO,

Donald F. Smith is

program

Street, members
and

San

Calif.

stock dis¬

with Wai¬

Montgomery
Stock

changes.




Ex¬

Oct.

on

general

30,

FT. LEE, N.
man
is

in

a

Huff¬

securities

business from offices
at 230 Main
Street

under

the

firm

name

Investors Service.

RALEIGH,
Rawls

N. C.

corporate

purposes.

Underwriter

of

Two With Pasadena
Corp.
(Special

to The Financial

Corp.

was

v

announced the directors

are considering
$5,000,000 subordinated convertible deben¬

of

due 1971. Proceeds—For working capital and used
required for research and engineering, modernization
plantfacilities, development of new products and gen-'
eral expansion of operations in order to promote in¬
tures

creased, sales.

Underwriter

Lehman

—

York.

Brothers, New

"

777

it Union Bank & Trust Co., Los Angeles, Calif,
v
"(10/8)
Sept. 14 it was announced stockholders of record Oct. 5
are to
be offered the right to subscribe on or before
Oct. 26, 1956 for 114,000 additional shares of
capital
stock (par $10) on the basis of one new share for each■

plans in
-

William H.

and

Jennings V. Womble
have joined the staff
of Reynolds
& Co., 120 South
Salisbury Street.
Mr. Rawls has
recently been with
Bache & Co. Prior
thereto he was
with Kirchofer &

Arnold, Inc.

000

,

near

future to offer to its 200 stockholders 500,shares of common voting stock at rate

additional

of not

will

more

than 2,500 shares to each stockholder.

expire on Aug.

Colorado

Corporation,

618

East

Rights
be

per

of¬

share.

Underwriter—None.

Washington Gas Light Co.
June

7

it

was

proposed

announced

new

company

construction

proposes

to

finance

of

pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and
temporary bank borrowings.
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.
cost about

—

^Watson Brothers Transportation Co.
vSept. 19, it was reported public offering of an issue of
619,776 shares of class A common stock (par $1) was
planned late in October., Price—Expected to be around
$7.50

per

share.

Underwriters—Cruttenden & Co., ChiCo. of Lincoln, Neb.; and

cago, 111., The First Trust
'Wachob Bender Corp.,

Omaha, Neb.

With Powell, Johnson

Two With Beckman
(Special to The Financial Chronicle)

Powell,

Inc.,

Security Building.

•LOS
H.

B

ANGELES, Calif.—Oliver
i 11 a rjl and Henry H.

r o u

Schmidt

are

Beckman

&

California

With Gottron, Russell

stock will

only. Price—$2

(Special to The Financial Chronicle)

I

Chronicli)

Street.

Unsubscribed

1.

fered to residents of Oklahoma

PASADENA, Calif. — Alan D.
PASADENA, Calif. — Carl F.
Brassington and Edward J. Gold¬ Rutter
has become connected with
stein have become
connected with,
Powell, Johnson &
Pasadena

—

announced company

of

-

J.—Sylvester

engaging

,

as

-

Proceeds—For expansion

Southern Counties Gas Co.
of California
Jan. 30 it was reported
company may in the Fall offer
$15,000,000 of first
mortgage bonds. Underwriter—To b<"

(Special to The Financial
Chronicle)
—

of the New York

Francisco

and

Join Reynolds Co.

Chronicle)

now

ston & Co., Inc., 265

financing

Forms Investors Service

passed

at the age of 74.

the

—Smith, Barney & Co. and Merrill
Lynch, Pierce, Fen¬
&
Beane, both of New York.

record Aug.
28, 1956, a public
offering of approximately
200,000 shares of
capital stock

Clement

Seiberling Rubber Co.
"
7 v;^777 77/-.'
Sept. 10 it was reported that the
company plans longterm debt
financing and/or issuance of additional
common stock. Proceeds—To redeem
preferred stocks and
for expansion
program, etc. -Underwriter
Probably
Blair & Co.
Incorporated, New York.

on

$6

>

Clement R. Ford

issue

an

an

ner

following 100%

tribution to stockholders
of

Sept. 10 it

Sinclair Oil
Corp.
Sept. 10 it was announced that
company is considering
selling $165,000,000 of convertible
subordinated deben¬
tures to be offered for
subscription by common stock¬
holders on basis of
$100 of debentures for- each
nine
shares of stock held.
Stockholders are scheduled to vote

Gas & Electric
offer to its
stockholders rights to
subscribe for

per

Underwood

,

-/

.

deben¬

7,

5

Ohio
(10/30) >•
plans to raise about

★ TEMCO Aircraft Corp. (10/22-26)
7
Sept. 2pr it was reported company plans early registra¬
tion o£$5,000,000 15-year convertible sinking fund-sub¬
ordinated debentures. Underwriters—A. C. Allyn & Co.,
Inc., Chicago, 111., and Keith Reed & Co., Dallas, Texas.

—

Corp., New York.

(• Pittsburgh Rys. Co.
Mary 4 it was announced that/Standard
Co. will

Co.,
■'

Dayton.

..

next

year
Will give consideration to
refunding its $75,000,000 of
short-term bank loans. After
review, the company will
decide the most
appropriate type of long-term
borrow¬
ing, whether it be insurance
loans, long-term bank
borrowing, convertible debentures or
straight

'

•'

v

indicated that the companv

Co.,

"7

•

con¬

&

■

★ Phillips Petroleum Co.
Sept. 25 it

-7»

■

Read

•

Underwriter—

determined

-■

Register

was

Proceeds—For

.Underwriter—Dillon,

7;j\' 77.7

company plans to issue and

bidders:

"

i

Co.

announced

Sept. 19 it

•

announced that

]

five shares held. Price—$35 per share. Proceeds—To in-,
late in October.
The offering is
subject to the.
crease caiptal and surplus.
.approval of stockholders on Oct. 4 of a
Underwriters—Blyth & Co.,'
proposed two?'
fdr^-one stock split.
Inc. and Stern, Frank, Meyer & Fox, both of Los
Proceeds—To Mrs. Florence Schick
Angeles,
; Calif.
Gifford, wife of, Kenneth C. Gifford,-Chairman
and
V
■ •
7
7 ; 7.7.,rr-4/i7a
President of the company.
Underwriters-—Merrill Lynch,
United States Rubber Co.
: r
•' 7''
Pierce, Fenner & Beane and
Hayden, Stone & Co., both
June 29, H. E. Humphreys, Jr., Chairman, stated that
of New York,
issuance of convertible debentures is one of several
Seaboard Air Line RR.
possible methods the company has been considering for
(10/2) >7777
Bids will be received
raising $50,000,000 to $60,000,000 which may be needed
by the company up to noon
(EDT)
on Oct.
for plant expansion and working capital. He added
2, at the office of Willkie Owen
that, if
Farr Gallagher
V & Walton, 15 Broad
convertible debentures are issued, they will be offered
St., New York 5, N. Y., for the
purchase from it of
pro rata to common stockholders.
$4,650,000 equipment trust
Underwriter—Kuhn,
certificates,
series Q, to be dated
Loeb & Co., New Yoik. 7
; "
Oct. 1, 1956 and to
mature in 15
equal annual instalments.
Probable bidders:
University Life Insurance Co., Norman, Okla. -;
Halsey,
Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
June 21, Wayne Wallace, President, announced
'■/
company

an

$6,000,000 of first mortgage bonds.

«.

"

licly

that

a

.

Pennsylvania
Sept. 12 it
sell

was

.

$6,500,(K)0 through the sale of its stock/ Underwriter—•'
Merrill Lynch, Pierce, Fenner & Beane, New York.
>

undetermined number
of shares of common stock
is expected to be offered
pub¬

■

announced

registration statement with the
equity offering planned to take
place later this year.
Business—To explore, drill and
operate oil, gas and
mineral, properties in the- -United
States, Cuba and Canada. Office—120
Broadway, New
"York, N. Y.
SEC

.

TAr Standard

7

Sept. 25 it

l-for-20 basis.

a

program.

New York.

^ Schick, Inc.

public.

Pan Cuba Oil & Metals
Corp.
April 9, Walter E.
Seibert,

x

plans to issue and

company

.

par), and cash
equivalent to the unpaid portion of the
preferred divi¬
dend which has been declared
payable in 1956, in ex¬
change for its 616,000 shares of $100
par value 5% preferred stock, series
A, on the basis of $100 of deben¬
tures, one-quarter share of common stock
and unpaid
dividends of $2.50 per
preferred share in exchange for
each 5% preferred share. The
offer will expire on Dec.
31,
1956, unless extended.
Dealer-Manager — Eastman Dil¬
lon, Union Securities & Co., New York.
Exchange Agent
—The Chase Manhattan
Bank, New York.

are

part, for cost of

mated

*

stockholders on

struction

^^7

Ry.
'^ '-'777
Sept. 5 company offered not exceeding
$61,600,000 of
50-year income 5% debentures, series A, due Jan.
1, 2006,
154,000 shares of common stock (no

•

Pacific Northwest Power
Co.

•

Public Service Co.

announced

February or March, 1957, $5,000,000 of first mort¬
bonds and $5,000;000 additional common stock first

gage

April of 1955.

Registration—Expected

was

sell in

-

Underwriters—Morgan Stan¬

ley & Co., Drexel & Co., and Glore, Forgan & Co.

which

Southwestern

Aug. 7 it

the time of the
Feb. 15 the company announced that
original financing
it estimates that Its
Price—$10 per share. Proceeds—To¬
construction
program
for
the ■' years
1956-1959
will
gether with funds from private sale of
amount to
$35,000,000 addi¬
$87,000,000, including $20,000,000 budgeted for
tional first
mortgage bonds, and $10,000,000 of 5.6%
1956.
This large
expansion, the company says, can be
interim notes and
borrowings from banks, will be used
financed wholly by debt and from
internal sources. Un¬
to construction
program.
derwriter—If determined by
Underwriters—White, Weld &
competitive bidding, may
Coi; Kidder, Peabody & Co.; The Dominion
Securities i. include Halsey, Stuart & Co. Inc.; The First Boston
Corp
Corp.; and Eastman Dillon, Union
Securities & Co.
/ St. Louis-San Francisco
in

Proceeds—Together with other funds, to construct

operate a $150,000,000 steam electric generating plant
the Coo3a River in Alabama.
Underwriter—May be

.determined

or

company plans to issue and
1,000,000 additional shares of common stock
(no
par) early in December. Proceeds—To repay bank loans

to be

are

*7

ana
on

previously reported. Offering postponed.

Service

Sept. 18 it

and for
announced

(par $1)

were entered into

Underwriter—
Probable bid¬

&

to

.

M

May 18, it was announced that this company, 50% owned
"by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co., plans to issue debt securi¬

sell

Pacific Northwest Pipeline
Corp.
March 20 C. R.
Williams, President,
about 280,000 shares of common stock

\

ElectricGenerating Co. ^

_

7.:

-

sold

Loeb

Dillon,

Southern

.

>

7

•

(

-

Inc. and Goldman, Sachs & Co.
Public Service Electric & Gas Co. (11/14).
(jointly); Blyth & Co.,
Sept. 18 the directors proposed the issuance and sale of -■ Inc. and Kidder, Peabody & Co. (jointly);. Morgan
Stanley & Co. 777': 7.\y/r
$50,000,000 first and refunding mortgage bonds due Nov. *
777^7'77.:
''
If 1986. Proceeds—To help finance construction program. •"★ Southern Pacific Co.
(10/10 > ; '
^ v
Underwriter—To be determined by
Bids will be received by the
competitive bidding*.
company up to noon. (EDT)/.
Probable bidders?
Halsey, Stuart & Co. Inc.; The First - on Oct. 10 at Room 2117, -165 Broadway, New York
6,;:
Boston Corp.; Kuhn, Loeb &
N. Y., for the purchase from it. of
Co., and Lehman Brothers
$9,603,000 equipment'
(jointly); Morgan Stanley & Co. and Drexel & Co.
trust certificates, series
VV, to mature in 15 equal annual
(jointly). Bids—Tentatively scheduled to be received
installments.
Probable bidders: Halsey, Stuart
Co.
•up to 11 a.m. (EST) on Nov. .14.
Inc.; Salomon Bros. & Hutzler.
1

$20,000,000 of its capital
organization and $10,000,000
Proceeds—To organize or acquire seven subcompany.

Kuhn,

Eastman

Bids—Not- expected

about Oct. 16

the State of Oklahoma

holding

Fenner 6c Beane.

»

<7

($10,000,000 within
Business—A

Co.;

and

(jointly).

Oklahoma Corp., Oklahoma
City, Okla.
July 26 it was announced company has been authorized
by the Oklahoma Securities Commission to issue and

sidiaries.
—None.

&

Hutzler

stock). Underwriter—Salomon Bros. & Hutzler,

publicly).

(10/16).>,

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
Boston Corp.; Harriman
Ripley & Co. Inc.; Glore,,

:Forgan

It is estimated that this gather¬

New York.

sell in

Indiana, Inc.

bank loans and for construction
program.
To be determined

plans call for private sale of first
mortgage bonds and
public offer of about $40,000,000 of securities
(probably
notes, convertible into preferred stock at maturity, and

stock

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
^

ing system will cost approximately $150,000,000.
Type
of financing has not
yet been determined, but tentative

-

:

July 30 it was reported company may issue and sell about
'$30,000,000 first .mortgage bonds. Proceeds —To retire

Offshore Gathering Corn..
Houston, Texas
Nov. 18, 1955, David C. Bintliff, Pres., announced com¬
pany haa filed an application with the Federal Power
Commission for a certificate of
necessity to build a
364-mile submarine gas pipeline off-shore the coast of
Louisiana from the Sabine River to the Gulf Coast of

common

determined
1

-'

Public Service Co. of

Inc.

the State of Mississippi.

Thursday, September 27,1956

...

JoinsV Livingstone, Williams

was

now

connected

with

Company, 321 North

Street.

Mr.

Brouillard

previously with Hannaford &

Talbot.

(Spsrcial to The Financial Chronicle)

(Special to The Financial
Chronicle)

;
CLEVELAND, Ohio—Gilbert G.
CLEVELAND, Ohio —Harry J. Dubray has become associated

Cross has become connected
with
Gottron, Russell & Co., Inc., Union

with

Inc.,

Joins Fin. Investors
(Special to The Financial Chronicle)

Livingston, Williams & Co.
Hanna

SACRAMENTO, Calif .—John D.

Commerce Building, members of
the New York and
Midwest Stock

formerly with Saunders, Stiver &

Exchanges.

nancial

Co.

1716

Building.

..

He

was

Fanelli is

now

connected with Fi¬

Investors

Broadwav.

Incorporated,

Volume 184

Number 5572

The Commercial and Financial Chronicle

...

Continued from
page 16
*

'

.

Francisco, Cal., The appointment,
made at the monthly
meeting of

'

<

•

.

.*

*

'

•

»

noted in our issue of Nov. 3, 1955,

the bank's-board of
directors, will
become effective Sept. 30, upon

r

*

•

■

*
*
*
N. W. Chisholm, General Man-

News About Banks and Bankers
h.

•

.

'

J

the

retirement

Dockstader.

\

of

William-

Mr.

AVAA

»

Walden
ff G1UCU

.

of

ager

was
wao

JL™ «rtrtcommon

Jo7,000,

was

KAQfrinrollr

xt

Boardwalk

4

caPital stock of
absorbed by the
i

«

2

i

1

National

Bank

.....

*

Conversion

.As

a result of the sale of

stock

*

tne

to

the

amount

of

1 ar

-

First

Bank of Andrews.

the

India ' JUI/UU
Ltd.

result of the

a

tinues

offering

new

President of

as

,

.

He is

a

a

i«

'

m

^

SS^Yf8

,

j

(Sept. 26) offered $20,000^000 Vir-

ctirti'n

P1aa+*»ia

^

ginia Electric

ttwihrt

102%

at

and

dnttrav

Power

&

refunding

Pa

Co. first

mortgage

bonds,

accrued interest,

to

Commerce, etc. Mr. Dock- :0f India, Australia & China, Head
steder, a veteran of 40 years serv- office, Bishopsgate, London, yield about 4.01%. The under¬
writers won award of the issue at
lce with the Bank of Martinez, E c.: 2, held Sept. 5 an interim
was Assistant Cashier when that dividend was declared for the cur- competitive sale on Sept. 25 on a
bid of 101.548%. *
■
■
ba?k merged with The Bank-of
year
at the rate of 7Y2%

a cap-

California*in^August, 1954. After,-actual,*subject

the

to

Net

deduction

proceeds from the sale of

insti

the

on

and after Sept. 28.

?T/?i
With')

7

„

pf;11
and

Turn Wifk Pnlif
comnared

Kuhn, Loeb & Co. and Ameri-

member of the Tax

able

>j-i000

Power Bonds Offered

of

UCC11
been"

appointed a Director of the bank,
it was announced on Sept 6.
r

°J

$200,000>and -surplus -of
$305,440.- Jackson E. Parker con-

As

•

Bank

VJUV11UV1I/,

Committee of the State Chamber
the <*' Commerce, Maroiraz Cbamoer

effective Sept;-.-5;?^'ital-of

fi

tt

National

(London)^" liCtS
has

1UU11*

State

Under its Na-

tional Charter the bank has

$250,-

a

1954.

.

the

National
Bank -System
is
announced,the converted bank bearing the title of the First National

new

$62,500,

capital of the First National
"iBank of Grove
City, Pa., has been
increased from $187,500 to

000,

of

Bank" of* A^drew^**Texas^*t<T

.

v<

'

;
.

of

named Assistant Manager at the
bank's Martinez Office in October,

American

«

Atlantic City, N. J.

'

President

of the
Bankers Association.
was

Virginia Electric &

1882.

page

:

*

55

(1335)

*

■

•

..

Ks

treasury for expenditures al-

* ready

Inv

inv.

4he

made

connection with

in

construction

program.",

Con-

AVAr- ^ocKsiaaer movea to
SAN DIEGO, Calif .—Charles R. struction expenditures for 1856
Californiafollowing ihis-- school Bixler .and Donald O. Snell have iare estimated at $50,000,000, With

ononAnA capital of the First National Bank *i=5Laie»

«1

in

"additional\stock,

GarlanSrex^ becSeffee-

capital.thereby

tive Sept. 11, the
years. Bince locating in Martinez,., joined the staff of California In-|$20,500,000 expe nded through
having been enlarged from $300,^ha| been affiliated with a num- vestors, Bank.of America.Builds i June 30.
£ •' i
900 to $400,0G0.» Of the increase • ber.of local organizations. >
; ;
1
The series M bonds will be re? 886. The new stock was offered; to1 $75,000. was-'brought about by the
J:
^
;r.ftnlj;n
1 de®mable at Tegular ^redemption
shareholders of record Aug. 24
S£de
tbat amount of new stock, - The Commercial Bank of Utah,' *'. ■■■ > TOW Wltfl rranklin
prices ranging from 106% to?par.
i at $65 per share, the rights expir- while $25,000 represented a-^tock of Spanish - Fork, Utah, a State
-(special to the financial chronicle)
Virginia Electric > & Power Co.,
ing Sept. 13. The 2,072 shares not dividend.
v
member of the Federal Reserve .< SANkER ANCI SCO, Calif.—Jack with its principal office in RiCh11 taken by holders it is stated were
• £System, was absorbed as of Aug.
D. CarHWell, ..Otto W. Graf, Peter mond, is an electric utility oper/ibeing bought byan-.underwriting/a With a capital and surplus of ^by the First Security Bank of L. Heine and Harry V. Hopkins ating m most
ar^ "J
syndicate
headed v by^ Blyth
& ! $200,000 each, a charter was issued Utah, • National - Association * of have become affiliated with Sam- parts of North Carolina^and „ West
..-Co., Inc.-Sales of the new issue as of Aug. 23 for the First National °&den» utah- The former head of-, uel B. Franklin
Co., Crocker Virginia. -It also distributes nfetit is stated, lifts the bankV total Bank in
Alaitfogordo, N. M. Under fice ^d branches of The Commer- Building.
ural gas in Newport News and
1
outstanding ? s t o c k to
625,000 the primary organization, M. R. clal Pa
,?
t?
operated
£
... .
V
J
Norfolk.
rtf ii,niorT.!*n.wcor,,pj
7 shares. ;•,yv-^
Prestridge
is President of the ?s ^ranches by the continuing
With Merrill Lynch
i
Population of the territory served
"'-ai/"i"
' *u
U
' « - bank, * and
Wayne Stewart ?is
.v- 7,
5
! (special to the financial chrohicl*)
9 finft^Od^hout
^w? thirds of

mot the
^

:shares, (par $20

t i

v

given in

our

125000

share),

were

issue of Aug. 30

page

per

,

-

-

,

4

;

,

v

.

.

*

i

..

National

new

Cashier.

u^:tht

5

.

'

r

SSetin^

lalinas^^National

-

,

>

;

Cashier..^^

/

*

■

,"V .4;;*

V *

:

National' Banka? SaTF^anS

•

:

with

J<?"
'

bejocated at
ferson,

Grosse

L

wk to

the pew

Pointe

-

legL

^

be

operated

by

Michigan.Bank in addition

V

^

r

tional
•"*

Bank

of

Pontiac,

pess

tional Bank of Pontiac;

:

had

'

of^

Gbuncil

^i<ff nSr ill
in
a

d

;

Los

t

Vi4

and

estatey

President

in^Januarv

officer

nf

h^de^ihe

division'

tannine

of

the

trus^deLrtment Vmanv
^ as<?npSt1nn

Prior

;

less

not

nf

S.st

a

Cleveland

V
J
%

^ :v,r.

" r;

_

.

...,

directors of The Bank of Cali-

A $400,000 capital is reported by
the First National Bank at Ponca

City,

Okla.,

as

of

Aug.

27,

the

amount

having been increased on
that date from $200,000 by a stock

?,

dividend of $200,000.

V-

<

*

^

1

seas^ •

Barciay8

Francisco.

~®5aia' 0
r

He is

^air^an.®^?be Board °f ^meri~
JarJ

President

Lines,

Ltd.

and

Company and President
°f American Independent Oil Co.

Massachusetts Mutual Life Insur-i4i5
Co.,

died

at

Nashville,

Sept.

15.

was

elected

a

his
Mr.

director

home

in

Houston
*,

of

the

Oct.

0f

60

15,

record

cents

a

1956 ;to
at

the

share

payable

shareholders

close

of

of

business

Oct, 9, 1956. 1,

boards

of

a

-

operated a general trust company
business since 1931 from its main

office in Montreal and a branch
office in Toronto- These offices
wiU continue to operate under
the Barclays name PeodinS comPIetion of le^al steP8 to integrate
them as branches with the Royal

clays

to

tional

of the Bank

corporations and in 1940-41




Two With Eastern Securs.

^

"

(Special to The Financtal Chronicle)

-

Chief Vault Custodian 45 Years WMi
Brawn Brothers Harriman i Co.
.
.

,

.

Trust

Co.

of

Canada,

will

join the Royal Trust as an Assistant General Manager, and other

wjth the Royal Trust.
"The
acquisition
of

Barclays

of

California of

San

year-old

(Canada)

Bank

with

the

necessary nor desirable, f
In our issue of February 6, 1956,
page

741 it

was

indicated that the
between

of Canada

the

Im-

and Bar-

effective
merger

on

of

Feb. 1. Plans for the
the

two

banks

were

Cordts, chief vault custodian for Brown Brothers

Co.,

firm,

Boston and

derstood to have developed from
merger early this year of Barelays

&

bankers,

advisors

investment

and

securities

(Sept. 25) celebrated his 45th anniversary with the 138-

brokers

Trust by the Royal Trust is un-

perial Bank

Manager o£42ie Martinez Office

Harriman

associate ! themselves

will

C.

Herman

officers and personnel of Barclays
tTrust

advanc^from Assistant Manage? clays Bank (Canada) had become

number of banks and leading na-

f.

Langrall is with McDaniel Lewis
& Co., Jefferson Building,

,

°00' "the par;^ value» and in casb-' :r "Barclays Trust of Canada has

amalgamation
,

on.the

(Special to The Financial Chronicle)

GREENSBORO, N. C.—Edwin

RALEIGH, in. v^. — jviaisueu b\>
rvAjur<njrxi, N. C. —Marsden jda-is
JACKSONVILLE, N. C.—Larry
yixjjju,
de Rosset, Jr. and Hubert D. Sum-j Lance and William T. Malpass, Jr.
ner are now affiliated with Merrill have been added to the staff of
Lynch, Pierce, Fenner & Beane, Eastern
Securities
Corporation
oo/i o^.,4u
oqi luorino RmiidvarH
331 Marine Boulevard.
324 South cniink,,r„ Street.
Salisbury

tor the shares

Price

Bank of Canada, the fur-

Massachusetts Mutual in 1932. He

had-served

McDaniel Lewis Adds

...^

(Special to The Financial Chronicle)

not disclosed but is conjectured to have been at least $500,-

Tnfn ^f^heStf?na?r?nnf afLC-ing Professor 'Of Marketing of the ther operation of Barclays Trust
American Natfonli Rank^f
Stanford University Graduate being regarded by officials of the
I -He, Tenm and a director of th^
dS" DMdendNa parent bank in England as neither
ance

_

Two With Merrill Lynch

was

•T

:■

_

n„]Ujn(,

T

Over-

d

SUice 1937has

.

_

"C- D- Paxton, Manager of BarVv?

than

%

.

June du,

inveit

mfianbstim.

.

V;.-

june 30

,. ness

CiS fclTt S ^ndWniC?hi%eXa?eCted ^
the end of the year.

mnmher

.' '
;
vHalph K. Davies, San Francisco
$669,538.shipping and oil company execuV
*
* : *
*
^ve, has been elected to the board
of

T

D.C.O.

(Dominion, Colonial and

An-

rS

Bank

£

nr^

'w

1049

W

veafs^1

The latter;

1950

Tr

?gfs

capital stock, of $2,150,000,
; : in 215,000 shares.ol common stock,
par $10.each,-.surpius of $2,150,000
and undivided .profits, i
including
reserves

,

Avery has & McKinnon, Liberty
Thomson become connected with

purchase by the R°yal

Canada, and for subsequent inte-! v

^
SS

a

capital

Trust Co.

Foundations

Mich.,

Aug. 31 under the charter
title of the Community

i^ed
enaed

of

FobtETia mwiths
1956 dlectri?busiijoo, eiecinc dusi

5,000 autstandinS shares of. $100

^

with common-stock of $1,500,000,
was effected at the close of busiland

"

financial chronicle)

of Canada, of all of the
ui v«iiau«, ujl an w mc

.

?hf*'JLe

^afp^afnciJ

'

'

Corporation Ltd.; Chairman of the

19, for the

a number of responsible

i

Mich.,' with " common
stock ! of
$300,000, into the Community Na-

;r

i-McCutcheon is Vice-President
and Managing-Director of Argus

1^9
"The stock was held jointly by
J*®1^ W1Barclays Bank Ltd. ■»of London,

% The* merger of the Oakland
; County ,State Bank of

^

V

Toronto to its board of directors.

^
Peared in the Canadian "Gazette"
eieciear.Miies runt to the post 0f sept. 20, from which we also
VJce-rresiaent ana
bemor quote the following—
nnofp t.hp following:
has held

two-thirds

600,000, .about

J

provided -93% of operating
T
Witl. Kino M«mH
revenues and gas business 7%.
,
*
With Ring Memtt
i Eo the 12 months ended June
(special to the financial chronicle)
30, 1956, the company showed total
CHARLOTTE, N. C. — Robert operating revenues of $112,736,000

latter's operations
£he- B°ard_ >inl 2,irec.toJs.of.the and facilities with those of Royal
of,
r;4Wo(.
..
„
.
«»u mwuuvu
wav.x
"zens National Trust & havings. Trust.. The foregoing advices ap-

The

^

Addison- Ruildin*

upanp

Beane* Addlson Buildmg.

gration of the

^]he\^n^f
^ ® Trus^
aaP®

^

,

Micah

CHARLOTTE, N. C.—Turner M.

«JS81?' 0
^ -i!li is1 located in
the Guardian Building.

;. ;

C

Merrill Lynch, Pierce, Fenner &

.

°f not les? than $19,209,000.

on OcUO and
branch will probably be

to

the election of M. Wallace McCutcheon, C.B.E., Q.C., of

nounces

N

now' affiliated ' withV

is

_

under
of

$42,667,000 and undivided profits

of the year, Mr. May said. - Complete. facilities will be available
at the new branch-with

office

CHARLOTTE

smith

^8;f^rps0n Ltd- and othe? Thomson. the
McKinnon Adds
comPanies.
.
(special to

title

and

1

by, fKoini8

parking

.

*

the

effected

was

the

privileges, drive-in banking and
safe
deposits^ boxes.;;The new
branch will be the sixth Detroit

3;

*

-

Crocker-Anglo National Bank

ui'

;completed shortly1 after the first
■;

charter

stock of 439 333 000

-rv -*

The Can»di»". ^2,k °VCommCTOe- hfad
®""
'

Board of St. Lawrence Corp. Ltd.; Revell and Georgia D. Robinson and net income of $20,152,000. For
aQd of the National Life Assur- have joined the staff of King the year 1955, operating revenues
amounted to $106,154,000 and net
^nceCo. of Canada; a director of Merritt & Company, Inc. " - . • income, was $19,052,000.
* Canadian Breweries Ltd.; Massey- ;
-

i5Jo^-12 fast Jef- ^4,0^300 sha'r^of 4°i—
Park,
stock^nar^S o"1?aph*"sirrnl^^^f

DriveTnW CnnC^rler

v

mer§er

the

by the Michigan Bank of Detroit,
*

common

The

:

V "

..v..;...-

Bank

-

the

;

J.

•

.

v

'
The Office of the Comptroller
of Chicago, was issued
:by of the Currenrv announce in it«
Comptroller of the Currency sent 17
that o mereer
at Washington on Sept. 4. Formed
certificate ' was
issued
An,
is
with a capital of
$500,000 and sur- aDnrovine and making effective
plus of $750,000, the officers of a? nf Snt 7 th?
nf thn
;the new bank, under the Primary
^iJSkSalinuf
Organization are Edward Damstra, ralif
with
mmmnn
«:tnpknf
President and Robert B. Grant,: 4400 onn intn thp r^ker An??AJ

-

,

:A charter for the

which

maintains banking offices

in New York,

Philadelphia, and investment advisory and brokerage

offices in Chicago.
Mr.
.

as

ner,

Cordts, center, is congratulated by Knight Woolley, a

other partners look on

bridge T. Gerry, John B. Madden, Mr.
Mr.

Cordts, Thomas McCance,

Woolley, and Robert A. Lovett.
Mr. Cordts,

part¬

(left to right): John C. West, El-

s *

who joined Brown Brothers on Sept. 25, 1911, has

been chief vault custodian for the last 15 years,

responsible for the

safekeeping of several billion dollars in securities,

cash and other

held under
clients of the

valuables, including the bank's own assets and those
custody accounts for individual,-corporate ahd other
firm.
Mr. Cordts
to

plans to retire at the end of this year,

Florida, where one of his two sons is

University of Florida, Gainesville.

and move

student director at the

£8

(1336)

The Commercial and Financial Chronicle.

a

I

investment in

I

of bonds,

is to
a

provide

diversified

preferred and

an,

group

relatively high
(stocks selected becauseyieldtheir
of and
current,

tinuance with

regard to the risk
involved. Prospectus and other

I reasonable expectance of its con¬
V,v-;

■•/•,"•

„

or:

•••'••
National

_

j

j

Established 1930

cussed

1

Research Corporation

'

K

the

.

r

_

istics

liberal

income

which

^

short term cycle.
is offered by the

'

bottom

A

the

of

Prospectuses upon request from the notional

such

industries

parts

Investors
Established 1925'
A mutual fund witli a
portfolio of securities
selected for possible
l

dividends
The

as

LT

spite

«

n

of'• the

appraisal

overall

first-prize

K f

winner

Ed¬

is

these

business as a sales

automatic

have

selection.on

with the Wellington Fund "Oscar"

on a

and

Kristeller

in

became Manager of
Vincent Astor farm-

1945

3,000

a

acre

In

1948

friend

a

of

a

Ray¬

...

r..,.

-

given by

moved

.years.

and

Popular

mium' production in
States has registered

the

a

Burr, Executive Director of

dealer.

companies engaged in the mining
and

processing of these

Investor

purchases

of

o

a

;

'keld by the 126 mutual funds
,

,

,

..

,

to-

taled $476,177,000 at the end of
August, compared with $426,732,000 held at the end of July, 'v

...

,

this

'

-

mutual

judges stated that

It began
that the man¬
agement of money is a? highly
specialized profession, and then
demonstrated the importance, of
to

institutional sale.

an

premise

the

with

and the
ih~**g5ihg
corporate

background knowledge
of
preparation

value

after institutional
business."
.

or
r

was
W,
Rambo, Close & '
Kerner, Inc., Philadelphia invest¬
ment firm. Educated in the public *
schools
of .West
Virginia,
Mr.
Mooney also graduated from. The
Wharton School of Finance, Uni¬
versity of Pennsylvania. He ^en¬
tered
the securities business in

winner

prize

Third

Ralph Mooney of

firm

the

with

1924

of

Stuart & Co. Inc.* and he

business

the

32

years

ever

Halsey,
has been

His

since.

of experience as a secu-

Buys Phillips Co. Assets

to

joint
White,

a

and

of

the

fund,

Phillips

Gray,

and

Mrs.f

President

principal stockholder of

investment

the

The pur¬
chase was effected by the transfer
of 379,044 shares of the fund to
company.

preferred

bonds,

and a
held
advice of

stocks,

broad list of common stocks

selected

or

upon

the

<'(V7V 777'7;/.. ./;"7 v
Gray
was ; the
principal.,

that firm.
z

Mrs.

stockholder
ber

as

trustee of

a

trusts Established

of

num-J
Mr.

by

Phillips, and other stockholders
John '. G.
Phillips,
sellers/and is a tax-free re¬ were z Mrs.
widowed daughter-in-law of Mr.
organization under the provisions
of the Internal Revenue Code.- ■// Phillips; Mrs.. Henry D. Irwin of
Okla.,
and
Robert
Phillips
Investment
Company Bartlesville,
the

was

formed

in

1922

by

the

late

Frank Phillips, principal founder
of the Phillips
Petroleum Com¬
,

pany,

as

Scudder, Stevens & Clark Fund,
Inc., organized in Boston in 1928
of as an open-end mutual fund of

family holding

a

com¬

has for a-number
years
retained Scudder, Stevens
& Clark, also investment advisor
pany.

It

:

to

jtq

pq

Phillips of Tulsa,, Okla.,
grandchildren.

Beattie

his

investment

of

balanced

so-called

the

have assets

type

will

following the merger

$71,346,713.

!
EATON & HOWARD

Fund

—A U. S.

incorporated mutual fund pro¬
viding diversified, managed investment in
Canada. For free prospectus mail this ad to

A
'

CALVIN

BULLOCK

r

C

EATON & HOWARD

BALANCED FUND

STOCK FUND

Common Stock Investment Fund

*.Managed by

Investment objectives of

this Fund
possible long-terra capital and
income growth for its shareholders.

are

Established 1894
j

EATON
*

.

&

HOWARD

INCORPORATED

•

Prospectus

ONE WALL STREET, NEW YORK 5

upon request

24 Federal Street

BOSTON

BOSTON

ESTABLISHED 1924

J
Name-

Address.

T
7^




Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

of

judges stated that this story was
"selected as the best entry relating

awarding first prize; in

according

,

group

in

able

was

of

~

Mildred

000 in August, as against $36,629,000 the month before and $31,894,-

provides liberal income with long
term growth possibilities. '
' /

number

he

substantial

—

President

new

cement, gypsum, roofing, sid- 000 in August last year,
ing, to mention only a few.
.,<••«
Cash, U. S. Government secuLeading auto part manufactur- rities and short term
obligations

selected

service

a

$14,504,552,

metals.

Hifi" r!f,;L-earSthalVe greaJtly
diversified their activities and

of. hold¬

announcement by James N.

of

■

year to convince the trustees
benefits and conveniences

investing
part of the
pension
trust's funds in mutual funds. The

.
Scudder, Stevens & Clark Fund, counsel. Its assets, in addition to
holdings of Phillips
Inc. has purchased substantially substantial
all of the assets of Phillips In¬ Petroleum common stock, in¬
cluded U. S. Goverment and other
vestment Company amounting to

shares in the amount of
$109,627,building and construction 000 in August, compared with
industry in its broadest sense $123,829,000 in July and $91,240,with
estimated
expenditures of 000 in August, 1955/ Share re$44.5 billion for 1956 offers other demptions amounted to $39,544,-

investment selections in a
variety
of fields such as the
producers

winning

prize

ScudderFmid

-The

:

awarded to
million

a year

earlier.

1.5

as
uranium, form $9,077,896,000 at the end of
lithium, thorium, columbium and July. On Aug. 31, 1955, net assets
zirconium and have benefited the totaled
$7,286,002,000.

Boston, Mass.

tedious

to„this story the

mand for such metais

^Berkeley Street

one

liquidation

the

funds sale. In

million tons in 1955. !
Reporting today on the AssoLead, zinc and nickel have sftbwn ciation's
126
open-end
member
large increases in production. De- companies, Mr. Burr announced
velopments in the nuclear energy that on
Aug.
31, net assets
field have sharply increased de- amounted to
$8,882,838,000, down

'e /r°m

Raymond's

effect

to

with 14,080 new plans opened in.
July,, and 10,362 in August

became

family effect certain tax savings

and

the

Association of Investment Companies.
This compares

•

he

1950;
of the

ings in inactive and defunct com¬
panies. As a result of his patient

National

sumption was Targer
reflecting
imports. Copper refineries turned
t out 1.1 million tons in 1945 and

,
e«ch

early

Florida's west coast.

through

accounts, according to Edward B.

United

growth from 793,000 tons in 1945
to 1.6 million tons in 1955.
Con-

on _

in

story described how he had helped

of

f

outstanding

"

Florida

to

soon

Mr.

ular in August when investors
Among non-ferrous metals, alu- opened 15,009 hew accumulation

-

New

outstanding mutual fund salesmen

pop-

equipment'-in the last 10

a

York securities firm, Mr. Raymond

;''f

a

;.,

long term and not

,

was

the

man.

short term investment."

Remain

in

prize

Brand's story about a

Mr.

mond's, who had a similar position dollar sale of mutual funds to a
that evaporated with the liquida¬ large pension trust. The story relatea now Mr. brand and hi^, as¬
sociates had worked for more than

A

New Fund Plans

/:;*

Second

Mr.

in Washington,

Co.,

&

C.

D.

in New York State.

estate

-

Capi¬

reduced

Inez after

graduation

on

yards.

been

representative

Reed,

&

of iWaddell

Fund

the investment '

contest, started in

King Merritt & Co., Inc.,
Palmetto, Fla., who was presented

trends in the selection of. the in-

cyclical

have benefited by
more efficient

-

_

Wellington

the

in

winner

require¬

Brand, second prize

Richard

J.

u

of; "plowing
back"
some
c,.,—ovmc,;
Plans for regular purchase
cm
ivtiii-—
t-i$10.75
billion
into
plant. • and mutual fund shares remained

INCOME

""enment

raiiroads

and

about

your

se¬

ager of

giveri

Mr. Munro concluded^ his dis-

.v.V."

'""a:.-

talizations

obtainable without
undue risk of principal.

,

all

from

cussion with the following sum- tion of the estate he had been
mary: "Portfolio management has managing, decided to drop
farming
to be alert to the broad economic and become a mutual funds sales-

cost-saving - equipment such
diesels, centralized traffic con¬

trol

income.

as

„

While

definitely

entries

located in every state.
The

afford lower vields

growth potential.

and

mutual

■i pro'Pectu,
fund
.,

the

on

ward L. Raymond, Resident Man¬

i

new

the introduction of

GROWTH of

fund 'whose
objective is to re¬

steel.

have

demonstrated

*

year

the

as

contest

dustries. 'The needs for income
"His explanation (for this rather
and the desire for capital appre- startling change of profession)
ciation through growth are es- struck me as a bolt out of the
strong long term growth trends, sential. Today it is important to
blue; because for several years I
In examining these
groups, the- als0 have technically trained men
had been buying stocks with un¬
speaker,
at
the
eighth Z annual besides security analysts in order
happy results—especially in 1946,"
mutual fund conference,
gave a to correctly study j n d u s t ries
Mr. Raymond stated. "Right there
short sketch of their history since which are involved in scientific
I got the mutual fund religion," ;
the end of the war which is char- research for their progress.
The
he added.
acterized by a remarkable growth
essence
°t successful portfolio
After taking a course for in¬
in revenues,
sales, earnings and management is to always bose
vestment salesmen

Incoiporated

large an

story was "se¬
basis of the sales¬

Raymond's

,

program tailored to the
ments of the customer."'

of

characteristics,
the j non-ferrous
metals, building and steel-group
now
are : showing / in
addition

'

Incorporated
Income Fund

and

groups

169 Investors Bldg., 8th and Marquette,

turn as

Mr.

lected

dreds

ne-

HrouDs^hPe
f^ld of nucle^
|™ups the new^H^^^ciear
certain textiles tionsto contributes largely to their

usually two

railroads,
non-ferrous metals,
building, auto

DIVERSIFIED SERVICES, INC.

?

in point

case

income, Mr. Munro recommended

distributor and investment managers

have

indusfries rrinv

.

m

o~f

For funds which require liberal

prime

man¬

from
The Wharton
and $500 in cash at the Eighth School of Finance,* University -of
than the SrouPs discussed before, National Mutual Fund Sales Con¬ Pennsylvania. In 1954 he joined
a
the
characteristically
vention, held at the Palmer House, the; Washington, D. v C., firm of
growth i^ustries the speaker dis- Chicago, Sept. 20 through Sept. Marsh Planning and Investment
cusse<* *n more detail the followCo. as Vice-President and Sales
22, 1956.
ing: chemicals, drugs and antiMr. Raymond became interested Manager; and recently lie became
biotics, electrical equipment and
with
the New
York
in farming back in the '20's, took affiliated
pi Optronics nnhlir utilities andithe
IC®'
Stock
Exchange; firm, of
Sade
courses in the subject at college,

nf

around-the

sues

these

.

*

stocks^

A

to

" these industries at any given

Ttis

■

SftSr^NOtTO.
clZcToi^^HC-

capital and

dealer,

farm

a

man's

.

thiirinnlvir^
nhuilnJ fhIt^oonStlmiStf
rpnlfirpc nMrphac^ Of cyclical IS-,
requires purchase

MUTUAL,

long ierm

time

ager, is the winner of the "Oscar"
and
first
prize / in
Wellington

instill

as

;tSi^

.long'

or

carSreadreVmebeechoseen be'cauJe

.

rate

selection

of

problem

fetfcs'^of 'the'Tndu?tHesartoCtehe
of
the
industries, .to .he

•

.

steel

investment

one

curities salesmen and saleswomen

term growth with lesser income—

Minneapolis 2, Minnesota

a

W? talk,

.

INC.
FUND, INC.

for

at

was

.,

stated, must be determined' by
the
objectives of the
fund
—
whether

STOCK

demand

growing at such

—

of industries for the portfolios of
mutual funds.
Such selection, he

| 120 Broadway, New York 5, New York

....

The

.

who

.

1

Securities &

^

.

(informationinvestment dealer
may be obtained
I';-" •*.

"v

problem involved, his understand¬
Fund's 1956 national contest for ing of the available avenues open
T0H.0
ALn„f
vW- .O. cessiate steady expansion of pro- the story about the "Most Inter¬ to the
client,-and the actual, serv¬
1 cliKS iVDOllXt. >"
-•; 'z ;•
ductlon facilities which gives this
esting Sale of Mutual Funds." His ice and quality of the planning
//Wrf
•
1
T
1
•
industry definite secular growth sales
story was selected by a panel that went into the sale. In short,
WInch Industries ■■■: Characteristics: in contrast to its of unbiased
judges as the most it appeared to the judges that this
,' former strictly cyclical aspects. ;
interesting story among the hun¬ was an excellent example of a

common

from your

^

v

;

John Munro

Florida

A

;

By ROBERT R. RICH "

mutual fund, the primary objec-

tive of which

-

Aw

To Three Mutual Fund Salesmen

|
through
<
I National Income Series
I

27,1956

Wellington Fund

Investing for Income - I

|

.Thursday, September

.

'.

Prospectuses from

your

'*

Ru68

-

Building

SAN FRANCISCO

Investment D^tjler

or

the above.

.

i

Volume 184

Number 5572

(1337)

The Commercial and Financial Chronicle

...

57x

x
■

'

-

rities

'

'

salesman "has

for

earned

a

vania,

Delaware,

•

Maryland

7

area.

.

.

it. involved

as

•

traffic

kC

£e af9

the. fabulous^ growth of

j

investors

^

Missouri Pacific Class A Stock

\

The 1,917,558 shares of

the class

laid out

The

"factors'cited

three

were:

'

•

Northern

Pacific

has

in

recent

under both in

hand, the Mis¬
shown

an

out¬

quately lor products and can bet-

'

r

~

«Vruntips

a.

the Missouri

of

-

— -

freight train hour in the past dec-

$342 million for ad-

begun to wonder when this "gold.all efficiency measure could show
plating" would come to an end, further improvement this year
and signs of this began"to appear,-which will be the first full year
with the beginning of the current of complete dieselization.
-year.. For the first-seven months
. ,
v
of this year maintenance was;
Joins Fewel & Co.
for

the

riod of 1955

«

■£>mo^d'

nt-~

rarresoondine

and the

same

for the
"

''tOS ANGELES, Calif.—Gerald
G- McNutt has become affiliated
Fewel
&
Fpwai
r.h
4M
Smith

with
110a,01 -laoo, ana tne.same _ior„tne_v.Hth

ad-: full wear

junior bond of

utual funds in-

over

jThe cist ^revenues'

™s£

otde^d; (2) improved Inlerna'tion^rGreat

made by 51,Hon Fox-

1955.

it

~

Co., .453 South
Spring Street, members of [ the
Los Angeles Stock Exchange. He
,

: On -1,.i" basis of estimated
„
the

rev-

carned trough tor the balance of-

c°"s seP

.
former subsidiaries
thls.'year> would mean "a pre-tax," - ; Form Salt Lake Sees.
^ deorgartiItion^ tha*ac- savLng of. som<! ?7 million,. Sonje. .
■
.,
d 1 hera ® ff *ti°
such projection was possibly the
SALT LAKH! CITY Utah-Salt

ter control cost and raw materials- :
and (3) growth possibilities have
been increased through develop- ?

dustry, it was one of the features
of :the -Eighth
National Mutual
Fund Sales Convention. Accord-

:

own

been

ditions and ^betterments as capital [ ade,[ or from 45,389 in 1946 to
expenditures in the 1946-55 dec- 69,716 in 1955. This gain is well
ade.; Students of the situation had - above the average, and this over-

paisettlement §51%

were

have

standing gain in operating effi¬
ciency as measured by the 53%
gain
in
gross
ton-mileage per

^S re+£°n{

,

sales?--;.,(1)- diversification of products to! The presentations of the prize day
which has brought greater A - imin0r"part of the ciaim of the
uMnnmd.f'Acnur"
nnH-'.hthAr stahnHVnf HpmanH- /2V imnrnvPH, 91 a min01 p?ri01 v*e. ciaim or me
!Jwinning /'Oscar" award and other; stiibility
awards

average

little

a

On the other

souri

r

produce

will

and

1955.

—

trXrve,

revenues

district

years

■'

the eyes ot _e.xPeFienced investors
^fact°rs which have ^pushed the a stock represents the major part
he had invested his client's acci- £a]rk®' p™;e
of the equity in the $812 million
dent settlement money in a long-'
PP
-capitalization of the reorganized
range
mutual fund, investment
,935 I93»f!according
Misfouri Pacific. All but a small,
program. According to the judges,
^hfseLXVifi/nf S part o£ lJ rePIaced th« 718,000
Mr. Mooney's story was "selected !nertfve"
nimifsherl L calv[n shares of the bankrupts 5% pr.eas a
good example of salesman- Zllock Ltr Onlv L naner and f?rred stock :af»ha;rat«t of 2 645
ship
showing how the use of aluminum industries have shown shares of • class A for_ each $100
imagination combined with a real
par share of the preferred plus
desire f

and

barely in line with the trend of
the

,

-

growing, territory, its

serves a

i-V* •' ?

40-

a

'

—

„

year-aid .-.an completely disabled
as. a result of an industrial accident • Mr. Mooney described how

.

1

v

TllFCC FctCtOFS

long-

a

financial program for

range

'.•"**

mi

; ; Ralph Mooney's story embodied
considerable human interest; inasmuch

'

,

Growth Due to

Jersey,
.• '.V'V-

New

N

Rubber Stock ;•

respected reputation among
clients in the four-state Pennsyl¬

him

;

V

'

'

•.

.

T

and

stocks

has

during the

Tu ™
There

advanced
same

period

u,aL

325%

only

priorities, it was necessary to ac-

-

,
au
,u
af least a nominal priority to
only two other fields. the 1 new ' classr A
stock
And
have -shown
greater
[m^nomfnal^t is -indeed, for the:
than the rubber industry; ,eauitV of this issue consists of but

a stock selling tor 40 or less as it
was at that time. '
•
TT

'

',■ ■-

'

^

Treasurer.

d^"ulua'
- All
were

with R. Reynolds & Co.

Secretary-

formerly

,

Unfortunately, however, the un-;
"'J.:■. which
pleasant reality of taxes can not With Freehlillff Meverhoff
creases
be overlooked, and this $7 million WM1. C^ciiiiiig, ivicycriiuit
•
according to the Calvin, Bullock. 40657 shares of class B common
pre-tax saving becomes "less "than ^rLt(Sp^iaItoTHE FlNANCMLCHR0NtctE^''"
bulletin.
They
are
paper, tup;sThefpriorfty ot the class A lies in
$3.4 million after allowing for the ..CHICAGO, 111. —Thomas ZimSI 10 Million
1,700%; and aluminum, up 1,600%^ its Reference over'class B as to 52% Federal tax, or .around-$1.7.5 . niewicz is now; with Freehlmg,
Massachusetts Investors Growth xprior to World War II, the art., both
assets
and
dividends,
the Per share. Actually,-the-increase-Meyerhoff &. Cox 120 Southi La
Stock Fund reported for the three tide explained, the rubber indusclass A bein^ entitled to dividends in Federal tax;for the firsGseverr'-Salle"Streel, member of-the New
;months ended Aug. 31, 1956 total try was plagued
*" "
v '
cemg enuueq jo aiviaenus
*s,_
are

-Assets.Wb^v'-

$110,279,579

Of

assets

net

;

*

lems: poor

com-

WereB

prices
^nor

pared with net assets of $77,140,-?

.

,__r

—

—

.

.

aao
Stockholders as
_ reductions
in .demand; ^ a preference of. $100 per share it would have, been .if the 35.1-%
.
,
,
ea^8°-*v ^lOCKnoioere as capital structures were often over- in>liquidation-v before- anything rate of the first seven months of ^
Joins Reynolds Staff .
,;of Aqg. 31 had increased to 29,526, burdened with debt; and lpanage- may be distributed to class B out last ^ar had applied-:--Thp- indi—- (spectait. t„b PmA*mi.ci«oNicii)
a
gain of 54% over the 19,141 ment had a "law-of-the-jungle'V^of ' the : road's assets, s. However, cat^ net saving of about $1.7
" cmCAGO, fn. —John A. Hush

-507

a

vear

y

• both; classes have;the same per million would be equivalent; to hag joined ^ staff o£ Reynold3
explaining the rubber in- share voting power, with one Vote aD°ut yacpnts per class A snare & Co., 39 South La Salle Street.
cer
shire which together with a ^ustry's moves toward divefsifi- per share for each, class, but this but, again unfortunately,' the~in- Hg;wa^
r^hmihg^
r^.-rr
?£itel lain
!n DewJnbe? cation' "Perspective" noted that . places almost 99%; of the voting crease in other, expepses. cut ihto. .,law .Bolger. & Co.
v
elmmred the trend has been to markets power in the class A stock." v:
this., Net earnings for-the lirst .--A
h
i oVSmP where profit margins are broader
Th
f
,, Dractical nnmoses
sevei1 months this year amounted
[ Arthur Krensky Adds
with $9.71 per sW
+a^this time than in the tire field and where AiJsoIri Pacifil class A Fs to be to $5'13 Per\class A share as
(Special to The Financial Chronicle) [
last year.
Shares outstanding on competition is less intense because
™a?dld as^ the road's common aSaiilst $4.42 for the correspondGRAND RAPIDS, Mich.—Ralph
Aug.- 31 totaled | 9,790,784, com- 0f greater specialization and less stock ^Since the annual revemies -ing 1955 period' a gain of only 71
J: Zinn has become affiliated with
pared with 7,944,675 shares outr interchangeably of products.
;v.;of the system, now-consolidated ce^;xf
Arthur
standing a year ago..These, figuresx/ Hand in hand with product adr0n the • reorganized Missouri Pa- :
partially offsetting rise in Arthur M^Krensky -& Go.,, Jnc^
McKay
.• have been adjusted to reflect the ditions,
aceording to- the article, ,cmq, have averaged over *1*0 per "ppteXTreat^Tagfn'the°c^e "
'
have, gone ehanges in technolog- share of class A over the past six apparently gremer iag in. tne case
three-for-one stock split: of Oc- £ca£ methods and raw materials
:years it is one of the most highly
^ *be Missouri Pacific in the
•paABS oq pjnoo Xubui sb ooicni
tober 1955.
;
used by the rubber industry. The leveraged stocks in the rail field, benefits of the freight rate an^
••qjBop ssojpoau b st q^BOpiao
In the report, the directors noted ihost fundamental, said "Perspec^
This is a „g0od> thing while all crease of March 7, which was of•"Ubo
paiqi Xjoao }Bqi si 'sn j|9|

/

stockholders last year. /

v

attltude toward competition.

.

:

vNpt-n<?c:ptc

were

In

$11 26

to

caual

'

.

,

•

^

;

>

;

the remarkable postwar
demand for

which

n

.

1R07

.,

.

port said 18% of-the
»

The

♦

V Markets

called

or

Tiort-

trust S-po

/

Services."

managed

long-

all

By

Moreover, said•, decline in earnings. Variation in
Bullock story, major expenses works in the opposite di-

quality.

Galvin

-

companies

attractive

offer

to

..manifold increase in earnings,

rubber,'"Per- ;other factors remaining the same,

mately 60% of the tonnage used. t the J same token, a reduction in
Chief reasons are its lower price revenues results in an exaggerated
and better

_

gressively

synthetic

of rubbgr fabricators have become
These ag- Producers of their own most im-

"Expansion

...

.

appear

tvnct'c

re-

companies in -this the

folio consists of

category

[Today

leisure time and spective" noted, provides approxi- -but which, is seldom the case.

of

use

family -security

greater
:

"better jliving,"

represent

enriched

growth in

products and services both for tire cord and rubber.

poraant

raw

material.

rection, a reduction in expenses
producing a greater gain in earnand. vice

ings,

.

^

lg55^ the art|cle explained>
the government sold its synthetic

versa.

Thus Mis-

million for 1956. This has
resulted in a small increase in the^
transportation ratio to J6.b% tor
oniy

the

sf v^n^on.ths ^

^jopop jno 'pbj OISBIJ

y.®ar

similar,

.

period despite 100% dieselized* operations this year. - The-

Missouri Pacific became fully die-

selized in the second quarter of
h*st year,

,

.

souri pacific class A can be in-x Projecting the 71-cent per share
herently capable of wide moves, - gain for MOP class A for the first

growth potential, the direc- rubber facilities—developed dur- one way or the other. In view of seven months over the full year
ing World War II—to private in- this, its comparative price stabil- 1956 suggests a gain of over $1
tors said.
dustry for $285,000,000. They con- ity in the weak rail market of the; per share :over the 1955 result of
sisted of. 26 plants with an-an--.past several weeks is quite note-. $7.93 per class A share and thus
nual capacity of 940,000 long tons.worthy.
'
~
,
l: leads to the reasonable estimate
The
rubber
Massachusetts
industry purchased
This has not been because of
per ^.class
term

„

half of the facilities.

Life Fund

is"

paying

26 cents per

a

Life

Fund

dividend

trust

at

the

of

payable

close

of

said the

tsitaibac/iudetfo

CfCob/tita/
tfnbu tance r(?etn/iatty, Trustee
Incorporated 1818




*

of

Arthur

D.

Little

&

Co., Cambridge, Mass., internationally known management en¬
gineering
consultant
firm,
has
been
appointed to the advisory
board

Boston.

of

Shareholders'

Trust
«

this
Pacific, in

gains

year.

of

revenues

A/or

as all previ-

ou^ly me«tloned earnings figures,
before providing for the capital

Missouri is
with, most +9

The

company

roads in the southwestern

district,

„S1" 9-g
*he reorganization.

by reduced wheat movedue to drought and other

haunted

.

been

thA

Earl P. Stevenson, Chairman of
Board

on

the ntkpr h nH
other hz

Personal Progress

business

the

■

Moreover,

about

certificates of record

September 21, 1956.

^

uses..

for

the demand for synthetic
rubber will continue, noting that
the United States may, because of
the
demand
abroad,
be
called
upon to supply foreign countries
with the synthetic product.

September 25,1956 to holders
of

of

rubber

report,

share from net

investment income,

'th? side of

fuli year-1956. This,

nUiPm.r ICT'^ IDDW AT TIIF RRirilTPP tinP
After ^allow- LETS LOOK AT THE BRIGHTER SIDE
for these fun-ds, tlhe balance
Many thousands of Ameri¬
ment
of
av^ a. 1.9, S
dividends
cans are cured of cancer
causes,
has shown considerably )Yould b.e ab?^U+hff
iess than average revenue gain in tbe. basis of this estimated net.
every year. More and more
the first seven months of this year, Thls has raised some expectation
people are going to thair
the gain for the MOP having been
of an increase m the classAdmdoctors in time...To learn
3.7%.
What it has achieved, on dend to at least $3 per snare m

80%
.

of

Synthetic rubber, according to
"Perspective," is good or better
natural

road

performance

the

than

DIVIDEND

Massachusetts

outstandiag

any

•

1

a

f,>m
firm

through

hand
hand

on'e^nenses
on expenses

aintenance
maintenance rate.
rate,

ruptcy
road

1957 siace the current year's disbursement was $2 per share out

the

of available net of $2.75 per share,

keen

sharp reduction in

a

During

mainly
mainly

to

the
set

aside

As to the lon§Gr tGrm outlook,
it would appear that more is to
1955 this be expected from further improveexcessive ment in efficiency than from outWhile

of the bank-

including

and

had

years

an

to

head off

cancer,

the American Cancer
or

call

Society

write to "Cancer" in care

of your

local Poet Office.

-

its revenu?s .f°*
maintenance in addition to having
proportion

how

of

the

6,700-mile

Missouri

Pacific

r-acmc

American Cancer Society

The Commercial and Financial
Chronicle...

The following statistical tabulations

ications of Current

usiness

latest week

Activity

week
Latest

ICAN

stfh

AVn

IRON

tvstittitp

idleated

AMERICAN PETROLEUM

INSTITUTE:

Week

Month

§100.2

•100.6

.Sept. 30

§2,466,000

*2,4^7,000

'

in

or,

of quotations,

cases

97.0

97.0

2,341,000

Orders for
;

'

new

New-freight

freight

cars

7,048,500

.Sept. 14

.118,078,000

.Sept. 14
iept. 14

each)
Crude runs to stills—daily average (bbls.).
Gasoline output (bbls.)
Kerosene output (bbls.)
Distillate

27,524,000
2,232,000

28,353,000

I.

2,293,000

"

27,372,000
2,268,000

;2,097,000

Jept. 14

12,663,000
7,750,000

13,080,000

\ 12,687,000

11,503,000

7,820,000

7,896,000

7,342,000

.

fuel

oil output (bbls.)
ivceiuuai
Residual iuci uu output yuutO')..——.
fuel oil uuvpuv (bbls.)

.

.Sept. 14

■■■■-■■

7,036,650
.v

8,187,000

.

7,122,100
7,899,000

-

.

Stocks at refineries, bulk terminals, in transit, in pipe lines—

V

Finished and unfinished gasoline (bbls.) at—

175,955,000

oepc. 14

-<40,270,000

47,198,000

freight loaded (number of cars)
»_Sept. 15
freight received from connections (no. of cars)—Sept. 15

820,666

679,611

(bbls.) at

Distillate fuel oil (bbls.) at.
Residual fuel oil (bbls.)

at

—

ASSOCIATION OF AMERICAN RAILROADS: -1
Revenue

Revenue

CTVlfc ENGINEERING

CONSTRUCTION

'<

AMERICAN ZINC

■< 6,684,150
•

'7,471,000

August:

..

25,954,000

-

<

141,229,000

46,700.000

769,624

659,177

orders

603,882

.

period

at

89,569?

Private

construction

Manufacturing

period

construction

_

Public construction

,

State

and municipal..

Federal

$432,958,000

8. BUREAU OF MINES):
and lignite (tons)

anthracite

Pennsylvania

D

1fti

4(1

A VCD

130

112

111

11,482,000

11,339,000

11,340,000

(COMMERCIAL

AND

INDUSTRIAL)

INC

BRADSTREET,

Total

SW-z'fe125

-Sept. 22

10Q

10,756,000

(in 000 kwh.).

output

FAILURES

-Sept. 15

9,880,000

T<

9,915,000

576,000 '

INSTITUTE:

ELECTRIC

Electric

491,000

595,000

DUN

A

-Sept. 20

~r

'

262 <

steel

215

*

.

METAL PRICES

.Sept. 18

(E.

A

©a.

Domestic- refinery

Export

(St.

Lead

;

at

(East St.

at.

$58.83

%

-

*•.. $93.04

v

' 5.174c

39.575c

39.675c

37.125c

37.900c

37.300c
98.875c

105.625c

104.250c

—

iept. 19

16.000c

16.000c

15.800c

15.800c

15.800c

13.500c

13.500c

13.500c T

.^ept. 25

<< 91.76

91.94

T< 91.44 v

iept. 25

99.52

99.84

101.64

102.00

103.13

104.66

3ept. 25

101.47

110.70

101.97

103.64
101.64

107.44

.Sept. 25

i
'

100.00

100.00

Sept. 25

94.26

94.86

3ept. 25

98.25

98.73

100.00

99.68

100.00

102.13

100.98

102.63

102.80
106.04

v

,3ept. 25

100.81

3.16

3.14

Average corporate

-Sept. 25

.<3.18

:

3.76

3.65

3.31

-Sept. 25

3.58

>

3.56

3.47

3.66

<T.

-Sept. 25

-Sept. 25
•Oi

-Sept. 25
—.

ASSOCIATION:

(tons)

''?*■>■ 3.83

<

3.75

425.3

.

3.75

<;

:

"-3.62:

3.69

:3.59

<< 427.0

424.1

.

15

264,153

280,651

<3.24

s.

411.6

.

266,557

224,619
273,756

202,337

Number

—

by

of

dealers

71

95

459,463

480,810

468,690

635,802

108.75

108.65

108.93

106.94

~---i

■

;•

104

s

1,059,985
$57,827,403

1

1,378,479

$53,550,016

1,131,208

802,475

780,504=,

short

sales.

.Sept. 1

8,175

12,136

other sales.

.Sept. 1
.Sept. 1

757,112
$38,411,756

$40,015,653

Round-lot sales by dealers—
Number of shares—Total sales.

-Sept. 1

Short sales

-Sept. 1

FOR

—Sept. 1

STOCK

AND

ACCOUNT

Total rotnd-lot

SALES

ON THE

N.

Y.

282~010

:

551,640

364,600

447.090

531,900

8,051,730

504,440

8,769,830

11,529,300

Sept. 1

8,953,150

8,416,330

9,216,920

12,061,200

TRANSACTIONS FOR s ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Sept. 1

178,430

Sept. l

940,480

1,201,780
197,020
1,028,180

1,118,910

1,225,200

sales

Sept. 1

Other transactions initiated on the floorTotal purchasesZ

——1

..

Sept. 1

Sept. 1

333,661
67,960

Sept. 1
—;

Total round-lot transactions for account of members—
Total purchases
sales

1,176,290

12,300

213,630

402,618

668,890
98,300

LABOR— (1947-49
;

=

595,325

779,381

NEW

729,227

1,589,901

—

U.

8.

DEPT.

1,826,268

266,390

320.170

1,747,265
2,067,435

2,270,511
2,684,531

1,771,437

OF

85.89 «-'•

'.'<< '<•<

•

Month

Other

360,010

2,131,447

""•Revised figure.

Sept. 18

filnclildes

ot.Jah^J, 1956, as against
Monthly Investment Plan.

Jan.




992,060
1,

1955

115.1
90.0

114.6

111.4

"90.2

88.9

104.0

of

<

$1.88
2.01

♦1.82

V-

^

■

:

1.70

i/'

•,.

i

■

V 71,700
;<
18,900

(units)--—(unitsj

shipments

39.9
.

♦$1.97
t 2.07

i.8i;

73,300
15,500
7,400

v

6,000

146,400 '■■■

(units)-——?

adjusted

of

Aug.:

-

'

64,600 "
13.200
6.800

164,000

247,300

'«

146,300
219,300

136

253,300

140

f

,

(1947-49

————;——

Employment
=

V.

141

t

Railway

T

*.

—

—

at

141*

t

79.0-

BANK

GREAT

LTD.—Month

103.0

87.9

101.8

88.5

84.3

84.6

122.6

122.3

117.9

128

of

100)
IN

v:

.

middle

78.4

83.5

£5,622,000

£13,912,000

£210,544,000

$95,073,194

$102,472,451

$106,780,584
20,309.136

BRITAIN- "
of

Aug—

of

June:

t

/•

—

21,886,519

Miscellaneous deductions
Income ,available-for
Other
•i

Net

after

fixed

deductions

income

from

fixed

income,—s—.

charges
—

—

<

taxes

120,520,164

common

90,039;694

92,497,756

4,196,087
85,843,607

4,372,520
83,125,236

45,907,872

45,644,323

35,730,567

38,458,890

46,061,601

52,186,047

25,356,791

44.445,847
"

—

stock
stock

3,921,549
123,168,171

81,373,510

-

appropriations:

preferred

127,089,720

'

77,185,229

.*———=-——.—

income

.

.

4,188,281

——

Depreciation (way & structure &
equipment)
Federal

4,426,354

112,285,302

charges

z

^124,946,518

4,674,411

Tqtal income

22,474,067

116,959,713

•

—

:

Sept. is

Sept. 18

125,828,319

122.6

runs.

tons.

115.1

SBased
tNumber

on

of

new

annual

orders

not

capacity of 128,363,000 tons
reported

since

introduction

Ratio of income

31,236,264

UNITED

STATES

1,438,023

—

to fixed

GROSS

DEBT

4,564,299

1,968,948

3.63

3.95

4.02

$275,644,165

$272,719,052

$278,352,470

4,177,520

5,753,343

$269,447,260

$268,541,532

$272,599,127

DIRECT AND

GUARANTEED—(000's omitted):
As

of

August 31

General fund balances

-

—

—

as

of

-

6,196,905

charges,

Net

debt

Computed annual rate

._™IZ

::';i

41.1

<•;'<■

'

.

—

shipments

heater

40.6

.

39.3

89.4

•104.0

barrels of foreign crude
basis

♦40.0

$1.98

V'V,'<

(units)

shipments

T<

67.83

< *40.6
~

2.10

burner-shipments

82.61

v.'

,

<--'■
!
z1

boiler

On

Sept. 18
Sept. 18

AH commodities other thfto farm and foods

"TV"

■■

39.4

range

On

Meats

'

40.9

income

Dividend

Processed foods

$76.33 J

•84.04

•71.53

40.3

CAPITAL ISSUES

Income

100):

commodities
Farm products

•$78.80

'

71.31

Net-railway operating income—

1,873,580

1,559,317

2,576,130
414,020

1,825,707

>

OF

* <

SELECTED INCOME ITEMS OF U. S.
CLASS I
RYS. (Interstate Commerce
Commission)— i

"

Commodity Group'

of

August

594,527

All

-

water

Index

134,700

681,081

225,930

.Sept. 1

-Sept. 1

WHOLESALE PRICES, NEW SERIES

:

'

conversion

Seasonally

422,060

84,650
510,675

524,807

—Sept. 1

38,890,790

$697,745,000 $646,951,000
- 53,081,466 '
51,870,231

August:

>•<'

■

247,650

16,800

456,847

.Sept. 1

Total'sales

53,246,057

$79.79

of

SYSTEM—1947-49=100—Month

213,010

.Sept. 1

Short sales
Other

30—

INDUSTRIAL PRODUCTION—BOARD OF
GOVERNORS
OF
THE
FEDERAL
RESERVE

•

t

at June

=963,280

291,720
308,520

'

105

42,758,421

43,075,287

$710,990,000

.

sales

Total sales

208,410
246,910

off the floor—

v

;

-

161,990
181,990

•128

*101
.H'v

V

consumers—

MANUFACTURERS ASSOCIA¬

Gas

1,203,870
-■

314,930

38,500

_Sept. 1

Sept. 1

Total purchases

20,000

-Sept. 1

initiated

Other transactions

'

112

INTERSTATE COMMERCE COMMISSION—

1,592,310
298,920
1,297,710
1,596,630

221,870

-Sept. 1

—

1

Total sales

Other

Gas

MIDLAND

173,120

464.7

,127

TION—Month of July:
T V
Gas-fired furnace shipments
(units)

Unadjusted

Other

356.4

-

ROUND-LOT

Total sales

442.5

manufacturing

GAS APPLIANCE

9,457,590

1,083,120

22,293,000
19,136,000
9,293,000

••

manufacturing

Gas

Sept. 1

7,128,000

goods

operated
Domestic gas

purchases
Short-Bales

19,022,000

-8,849,000

manufacturing

All

391,870

Sept. 1
Sept. 1

Total

21,897,000

18,912,000

31

customers—month of

Durable goods
Nondurable goods

2~18,406

493,170

14,542,040

21.709,000

'

STOCK

sales

sales

Sept. 1:

.

218,400

1,386,^89

Hourly EarningSr—

797,559

282,010

Z

OF!

13,115,000

Aug.

sales—

Short sales

of

Durable goods
Nondurable goods

$39,503,986

200^370

<

1,337,050

19,136,000

August:

.

4,916

1,123,523

$58,225,321

200,370

456,190

Total sales

Other

of

LABOR—Month

All

ROUND-LOT STOCK TRANSACTIONS
OF MEMBERS (SHARES):

Short sales
Other

193~110

deafers—

shares.

TOTAL ROUND-LOT
EXCHANGE

193,110

J

'

.Sept. 1

sales

of

7,685

776,368

142,680

999,145

1,512,738

S.: DEPT.
as

STORE SALES—FEDERAL RE¬
SYSTEM—1947-49 Average=100—

Weekly Earnings-*-

975,702

$75,842,238

$61,196,163

765,287

-133,970

19,022,000

-

31-,

Hours—

1,106,685.

Customers'

Number

U.

on

717,115

1,211.562
^9,764,505

18,912,000

25

(DEPT. OF COMMERCE):
in place on Aug.
active

V

-

•

FACTORY EARNINGS AND
HOURS—WEEKLY
AVERAGE ESTIMATE—U.
S.

All

Customers'

Round-lot purchases by

Aug.

bales

gross

V 549,520
902,890
12,845,734

871,556

of

Durable goods

.Sept. 1

Dollar value

-Other

——

—

.

797,238

12,312,831
154,938

(running bales)—I

500-lb.

-Nondurable
Sept. 1

shares

—>—

686,275
'

of July____

as

'<••<:

•

25___>_—

DEPT.

.Sept. 1 /
-*

Aug.

Number of ultimate
customers

v.

Odd-lot purchases by deafers (customers' sales)—
Number of orders—Customers' total sales.
—1—

4

Aug. 25—

omitted)

purchases)—t

(customers'

;

of

as

EDISON ELECTRIC INSTITUTE—p
"
Kilowatt-hour sales to ultimate
Month of June (000's

COMMISSION:

EXCHANGE

of

PRODUCTION

Month

290,350

97

Sept. 15

.Sept. 21

SECURITIES

-

Adjusted for seasonal variations——^
Without seasonal adjustments
2

246,613

Sept. 15

period-

AVERAGE ==100

sales

$580,000

$548,000

COM-

August

Revenue from ultimate

.Sept. 15

at end of

Sept. 1

SERVE

'

Odd-lot

$509,000

1,987,000'

DEPARTMENT

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS" AND SPECIALISTS-ON N. Y.
STOCK

EXCHANGE

$263,300,000

3.39
3.29

OIL, PAINT AND DRUG REPORTER PRICE INDEX

-

$732,000,000

9,663,000

!

Active spindle hours (000's
omitted) Aug. 31
Active spindle hours
per spindle in place Aug.

3.58

3.86

of

as

Spinning spindles
Spinning spindles

;3.31

.3.95

3.70

Percentage of activity
orders

3.65

y

3.77

.Sepl.

Orders received (tons)
Production (tons)

1949

$293,000,000

,

4,252,000^
10,024,000-

OF

GINNING (DEPT„OF COMMERCE)—

Production

3.22

57

4.08

-Sept. 25

COMMODITY INDEX.

NATIONAL PAPERBOARD

Unfilled

3.53

•<: 3.75

-Sept. 25

Utilities Group.
Industrials Group

3.63

3.75
4.12

,

-Sept. 25
-Sept. 25

Public

.

month

COTTON SPINNING

3.13

—

A

•

10,983

59

YORK—

OF

BALES:

AGRICULTURE—1955 Crop

AVERAGES:

Aa

Group

RUNNING

—

DEPT.

—

Aug. 25 *
spindles active

COTTON

2.88

3.78

Aaa

DAILY

LINTERS

consuming establishment

As of

108.70

96.85;/,

-Sept. 25

YIELD

U. S. Government Bonds

DEPT.

OF NEW

public storage

Cotton

107.80

•

S.

OUTSTANDING—FED-

In
ln

94.85

-Sept. 25

I
Group.

Industrials Group

0

11,513

107.44

.

<:

U.

13.000C

.

Group

BOND

AND

COTTON
.

_~zzninzzzzzziizzzizzzrz_zzizzziizin

MOODY'S

11,339

I

BY

omitted)———,^

109.06

14.800c

l

PRICES DAILY AVERAGES:

Utilities

PAPER

—

96.750c V<Lh
'nters—Consumed month
15.000c
Stocks

iept. 19

Baa

Railroad

$36,028,000

4,127,000

Aug. (000's omitted)

Tn

■

43.425c

——oept. 19

at

.

MOODY'S

$48,689,000

7,507,000

■

43.650c
•

16.000c

—

at__.

Aaa

Public

-

COTTON

,

iept; 19

—

corporate

Railroad

-

$59.09
$44.17

Consumed

39.600c

of

ERAL RESERVE BANK
As of Aug. 31 (000's

.

i\

$57.50

Sept. 19

S. Government Bonds

Average

a

$63.04

$58.83

—Sept. 19
—

Louis)

MOODY'S BOND
U-

$63.04

5.622c

-

MERCE

at.

Louis)

iept, 18
Jept. 18

5.622C

.

.3ept. 25

Zinc

CORPORATIONS

/

.;

—i

York)

Lead (New York)

5.622c

J. QUOTATIONS):

M.

at

refinery
(New

.

.

Electrolytic copper—

Straits tin

$10,102,000

10,806,000;
14,772,000

$55,040,000

171

COMMERCIAL

lb.).

(per

Pig iron (per gross ton)
Scrap steel (per gross ton).

V

$9,005,000
12,809,000
11.945,000
7,488,000
7,442,000

$17,828,000-

—

COMMERCE—Month

1

203

IRON AGE COMPOSITE PRICES:
Finished

888

liabilities

S.

134

87

-

DIVIDENDS—PUBLICLY REPORTED

U.

430
**

1.018

BUSINESS INCORPORATIONS (NEW) IN THE
UNITED STATES—DUN it
BRADSTREET,
INC.—Month of August
CASH

107

341

95

Commercial service liabilities

1 DA

*ni?

SYSTEM—1947-49 AVERAGE
EDISON

8,730,000

i4s

1,101

—

19,823,00(hj

15?

85

540

.'•<<

....

liabilities

.

<

■

165

567

number.

Retafl liabilities

655,000

<

195

'•

;;
<'

Construction

10,650,000

-Sept. 15.;

73,632

..'.-j

98 K '

:

number

147,653,000

SALES INDEX—FEDERAL RESERVE

DEPARTMENT STORE
ovrcrirM

Sept. 15

(tons).

'

'

(U.

Bituminous coal

'

v'v '

—

Manufacturers' liabilities V——-j.:—
Wholesale liabilities

285,305,000

f

COAL OUTPUT

54,629

—_—

service

127,830,000

r

43,084

'

(tons).

number

number

84,874 1

r

.<,90,080

53,559

104,325-'

•'

Total

$380,704,000 < $372,488,000 4 $321,458,000
.Sept. 20 * 238,466,000 < 232/973,000
151,690,000
.Sept. 20
142,238,000
139,515,000 ;■
169,768,000
.Sept. 20 f 109,943,000 v
112,817,000
149,376,000
.Sept. 20
32,295,000 <
26,698,000
20,392,000

t

49,531

•102,775

1
—

*

of

number
Construction number
Commercial

.Sept. 20

83,080
"

88,019

(tons)__.

end

Retail

«

S.

U.

•

•

/<<v<v*<<

.

:

3,480

v

BUSINE8S FAILURES—DUN it
BRADSTREET,
INC.—Month of August:
<<>
';
Wholesale

<

13.405
.

.

•'<

,

2,642

5,344

.

rv

'

657,711

y

-

5,364

.
'

Ago

(tons of

> J NEW8-RECORD:

Total

of

;

zinc smelter output all
grades
2,000 pounds) <—
Shipments (tons of 2,000.pounds).

Unfilled

817,234

623,615

y-y;/-"

Stocks at end of

ENGINEERING

—

-

'

:

Year

Month

,

152,165,000
35,726,000

44,996,000

32,698,000

142,731,000:

176,202,000,
30,717,000
128,934,000

*

INSTITUTE, INC.—Month

V

•>:

Slab

*

T

Sept. 14
175,767,000
Sept. 14 V-33,712,000
Sept. 14
146,105,000

Kerosene

of that dates

Prevlctui

2,575

„

delivered—

cars

„

Sept. 14

gallons

42

are as

Month

AMERICAN RAILWAY CAR INSTITUTE— V
Month of August:

Crude oil and condensate output—dally average (bbls. of

;K

either for the

are

Latest

Ago

2,389,000

'

Dates shown in first column

that date,

on

production and other figures for thfc

cover

Year

Ago <"'

.Sept. 30

steel operations (percent of capacity).
Equivalent to—
Steel ingots and castings (net tons).

month ended

or

Previous

wee*

-

month available.

or

Thursday, September 27,1956

2.607ft

2.605ft

-

2.384ft

•

Number 5572... The Commercial and Financial Chronicle

Volume 184

bentures up for
several ra^w^v

scheduled

bids and there

New

England Telephone has
shares being offered to

enupment issues

679,012

sold.

present holders in the ratio of 1-

enterprise, and its functioning as
a catalyst transferring a revolving
fund to private hands for building

for-8.

productive enterprise.

to be

ern

are

South¬

LooKing furmer* anead,

59

(1339)

^

1

••

;

.

■

,

Joins John M.

Flynn

(Special to Thk Financial Chronicle)

\

SANTA BARBARA, Calif.—Ed¬
W. Schroeder is now with

ward

the

But

expansion of

Continued*

from

4

page

clamor for
less sound nature,

potential
a

the

capital market
to be some in¬

corporate

but there

appears

that

dication

line

The

coupon

ital

need

a

though

even

higher

substantially

is

Asia, largely because of a
loan to India's Tata

pulled

such

lion.

borrowers,

No

of
of post¬

some

whom balked to the point

jected offerings a short time ago.
now seem more willing to recog¬
nize the situation and accept it.
At least a number of firms who
thus

.V

market.

the

week

This

cations of momentary

ease

DolFucal
wlSj

^

moneys Jiave
1LA*

•

<:

'■

'

■

'

:

:

V

,

lean

to

the

to

offerings

newer

Chile,

loan

of

much to the exclusion

pretty

In

to

after

mill in 1953, the
asked for-further

a

paper

when
in the seasoned market- Bank,
loans up to $140 million, demanded
Accordingly,
banking
gro ups
as
a
prerequisite the submission
sponsoring current offerings have
of a comprehensive plan for eco-t
been doing quite well, whereas
nomic repair. This was dispatched
traders are not quite as happy a*
last year, with a loan request of
the moment.
,v •
*
;
;
,;
"*■
:'X: •"'
" i. i
1 ''-j,; $25 million for coal and electricity,
now under discussion.
; Capital
Sources
Meanwhile,
interest

.

.

'

TEXARKANA, Tex.

R. W. Simmons Dir.

—

Joel H.

Clark & Associates have opened a
office

branch

p.

CHICAGO, 111. The election of
^^

the

in

and

in

Johnston

the

Shreveport,

Building,

Louisiana

National

State

Bank

Building, Texarkana, Ark.

—of not granting loans to member' has been announced by Walter C.

FIF Branches

"hieh-powered international debt. Blunt, Ellis & Simmons, investcollector."
;\v\' ment securities firm with which

DENVER, Colo. —FIF Manage¬

.

further

objected

the

to

ment

he has been associated since 1948.

r e a

1 Is * ic

11

a

market

money

confirming

y

conditions,

to

was

Corporation

branch

office

at

opened

has

905

West

a

Arch,

Searcy, Arkansas, under the man¬

agement of D. L. D'Auteuil, and at

Mr. Simmons is also a director
of Western Tool & Stamping, Inc.,

South

314

millionby tbejepresenta- Des Moines, Iowa, and David
SYS +of TuiJey' Salf ?■' Japa£ White Instrument Co., Milwaukee,

.$20

a

•

'

continue

investors

/~:v

/.

per cent "service Previously, he was a Vice-Presicharge" on loans, which complaint dent
of Lee Higginson Corp.,
together with raisea interest rates, which he joined in 1928.

r

Chile and Peru

Joel Clark Branches

implications.

overriding one

been secured from

Construrt+i^e Attitude Toward

l

Institutional

pur-,

countries
arrears, the Bank is Hasselhorn, President,
accused °f becoming a mere
Mr. Simmons is a partner in

that country

^

But

,«ayras an outgrowth of any soften¬
ing of Federal Reserve policy of
firmness.

resists

Shuman, Agnew

(Special to The Financial Chronicle) ;

%

:low,mS the-.-pplicy-uwarrantedly £

Cuba

there
was
nothing to suggest that such ease
market.

money

Ex-Imp.*

He

™

®

indi¬
in the

some

hmvTt

Forlince

pressure.

brought

that it is not performing the

to

+v^

T„ri,Q,

has showed

'

'

for

d'etre

raison

Tr,

back into

come

the

as

in

firming

the

to

costs, have since

invidious

conclusions

Ex-Imp are to be inferred from Poses stated in the Articles of
these
comparative
data;
but Agreement
adopted at Brettoa
merely a highlighting of the Inter-1 Woods, and that it is demanding
national Bank's contrasting lend- additional compliances never en-.
ing policies with those prescribed visaged by the founders. In

poning or even withdrawing pro¬

reacted

at about $160 mil-

up even

Joins

department"

Steel Co., the IBDR has

Iron and

the
than

few brief months back..

But

previous

$75 million

able to get the cap¬

are

cost

year,

the

•
As'v
S5 ? I
'
1S>
-^together hhely that American
"complaint ^sppport for the .IFC serves as a

SAN
FRANCISCO, Calif.—
was Cuba.
Its rep- r?jafuVQ
arls .? "ead Douglas C. Horner is now .'asso¬
resentative, Joaquin Meyer midst ' o f t e Sun"Fed kind of aid.
ciated with Shuman, Agnew &
Tuesday's discussion of President
In any event, a second Eugene
Co., 155 Sansome Street, members
Black's report, maintained that the Black in the person of Mr. Garner
of the New York and San: Fran¬
Bank is not performing the tasks fortunately is meanwhile going to
cisco Stock Exchanges.
in public service for which it was-try to hold the fort. The results
created; and charging specifically will have the broadest general

were

from

But for

rates and yields. In short,

borrowers

they

which, incidentally,

halved

attractive

more

frJudulenJ Sun- Fed giveaway

;

—

,

Interna# '/ Also highlighting the

e

tional's

however, in favor of current flo¬

carrying

doubled -t h

likewise

is still clearly drawn,

tations

,

•

fairly discriminating against the,
rightful needs of the underdevel-.

the

During

past fiscal year Ex-Imp's total ex?:
tensions to South America have, oped countries.

of being formed.

process

Co., 3680 Skn

.''

of James R. Lewis.

$439,826,000.

against

in

is

base

new

a

Flynn &

.

Operations in Sound

International

Dual conditions continue to rule

•

in

M.

Gabriel Lane.

here already this, week.
Putnam Fund Branch
Amjed Ali of Pakistan, complain¬
WASHINGTON, D/C.—Putnam
ing of the paucity, of aid so far, Fund
Distributors, Inc. has opened
advanced the need for financing
a
branch office in the Shoreham
! non-bankable-projects, and spoke
Building, under the management
for- early creation of the wholly
indicated

The Current

John
,,

particularly after the Institution's
subsequent enlargement, was also

•

Second,

City,

Dodge

the

under

Kansas,

direction

Philip Deines.

of

;

.

^J^istan, and opposed by. South Wis.
Africa, who, maintaining the need

NOTICES

DIVIDEND

Two With Dean Witter

7.^^ ^deahsm, offered
Ihethought that the reel test may

?^ .P

Aie anead.

r

i^

(Special to The Financial Chronicle)

f

,

.

SAN

a

FRANCISCO, Calif.—John

T. Price and Vernon J. Ruble have

'

regular quarterly dBvidend

A

1

•

New

Finance

j.

$25 million

One of the elements making for.
firmness in money is the

Imp

increas¬

month ago for nitrate op¬

a

K

the

lender

were held up pending
o4 remedial economic
steps; with her • representative at

the

course. —

Peril, requested, loan

With

ap-

Istanbul
meeting last year
waxing most enthusiastic and ap-

new

preciative
fects

in favor of the
V

position

of

over

the

the beneficial ef-

Bank's

constructive

foresight.

the borrower.-

over

■:

vision for the
money

use

pointed

Corp.

situation

in

explaining

that

up

the

noted

that

re¬

million

tained earnings no longer are suf¬

to

ficient
of

finance

entire

the

of

"'ere

expansion.

was

extended in 1951

and

loans

two

cost

case

totaling' $80 million
made in 1953. These credits

for development purposes,

Credit

Commercial

Commercial Credit

several

postpone

financing

?

Corp., which
decided

back

weeks

Corp.

plans,

-

to

came

the market this week for

into

larger

even

an

had

it

than

sum

originally set.
The

float

had

company

$50

million

of

securi¬

ties prior to the decision to
pone

.

the

post¬

When it came back

the deal.

into

to

planned
new

market,

total

the

was

raised to $75 million of notes due
in

20

the

10

indicated

carried

4%%

a

yield

^

Next

week

from

corporate
will be

price of
with the

a

coupon,

at

4.375%.

for

to

Bank's
in

credit

the

Equities

shapes

debt

up

rather
of new

as

standpoint
securities.

%

But

it

a

several

American

Telephone & Tele¬
graph's 5.8 million share offer¬
ing on a l-for-10 basis naturally
tops aU others, while Transcon¬
tinental
Gas Pipe Line Co. has
441,250 shares of new common
slated for offering on a 1-for-16
basis.

Wednesday will bring Columbia
Gas System's $25 million of de-




World
was.

famed

Suez-tied

project

Dam

vis-a-vis

responsibility on the part of the Bank,
The original loan offer was tied
in with contemplated government
Egvpt,

but. througlt no

g^vrnts frmri Great "rita^ and the
United

off

called

States,

at

the

aegis they existed.

Yugoslavia's

a

over tne

administration

recent

Aswan

under whose

busy period in equities,
large "rights" of¬
ferings which are scheduled.
due

political influence

direction of the State Department,

,

Week

light

for

years.

issue

The

98.45, for

non-callable

but

years

first

following Marshall aid, were definitelyand closely correlated with Italy's
strong economic recovery. •
In the case of Burma, similarly.,,
credits were delayed pending signs
of definite recovery and reform,
in May, 1956.
The only definite instance of

of $60
and 1953, in

acquisition

overcame

f

the

ore-

CTV

«

1949

the exception that proves the rule,

That

the

constant

compassing
bankers.

prestige of the world organization
is expected to make the securities
more salable to their customers..
Fortunately, t h e " Institution's
first President, Robert L. Garner,
an
erstwhile businessman, quite
ardently is devoted to the free
market.
This week Mr. Garner
dedicated
the
organization's ; policy
to
demonstrate

indicated here this week.
Jordan, through its Undersecretary of National Economy, Hamed
Farban, made the charge here in
open
meeting Tuesday that the
creditor

nations

exert

fluence in the bank's

undue

DIVIDEND

of

meeting

a

LIMITED

NO.

share¬

to

October

26th.

of

Etedrfcol and
1956

19,

156

Board

the

'

Directors

electronic

*

products

Modem furniture

of

Dome Mines Limited, held this day, a dividend
of Seventeen and One-half Cents (17»/2c) per
(in

share

Funds)

Canadian

declared

was

President

pay-

private

Amphenol Electronics Corp/
At

a

of

tors

45? per share on Common Stock.
283M pet share on the 4.6%

ration held today a

quarterly dividend

*

Cumulative Preferred Stock.

Corpo¬

Amphenol Electronics

Common stock dividends

are

payable^

stockholders of

October
of

twenty-five

to

Cents

payable

declared,

of

share

per

October

shareholders

the

of

was

26,

record

October

business

1956,
at. the

12,

1956.

The transfer books will not be closed.

15, 1956

record

the close of business October

at

to

2. 1956.
on the 4.6%
Cumulative
value Preferred Stock are pay¬
15. 1956 to stock¬
holders of record November 30,1956.

Dividends

|25

par

able

December

Robert A. Wallace

September 17, 1956.

-

Vice President end Secretary
•

FRED G.

-

PACE, Secretary

September 20, 1956
Bogota, New Jersey

CONSOLIDATED

capital

OTIS

NATURAL GAS

-COMPANY
York

ELEVATOR

Plaza

Rockefeller

30

New

^

COMPANY

20, N. Y.

I
Dividend No.

stake.

for

Federal

dividends:

the Board of Direc¬

of

meeting

and initiative playing the active
role. Validity of contracts, with
political stability, is to be closely

Mr

of

Directors

of

Paper Board Company, Inc. has this
day declared the following quarterly

Dated at Chicago

with

Board

The

investments on terms that compensate fairly—in lieu of social
schemes, government enterprises,
the financing of exports, or bailing-out operations. He emphasized
again and again the importance of

a

Treasurer.

Common & Preferred Dividends:

private investment can be
profitable as well as useful; sto

that

production,

and

FEDERAL PAPER BOARD CO., Inc.

close

35

°

Common Dividend No. 200

discussion period

Garner's

following

statement, the need

ing the flow of capital to private

is clearly

15th

Miafcaffc, M. J.

,

policies un-

laxity in lending policy
will be kept up, if not increased,
greater

record

ROM,lne.

investment
imprimatur a n d

in-

for

of

;

leading

The

capital, increasing productivity, via knowhow, was vigorously endorsed by
Australia. This sound course was
also backed by the United Kingdom, Germany, and the United
States; Assistant Secretary of the
Treasury
Andrew
Overby, the
U. S. Governor, specifically back-

pressure

November

mailed
holders

NOTICES

MINES

corporation is looked'on as a galvanizer of potentially ready foreign investment capital, even en-

In

Increasing Aggressive Pressure

share has been declared

by Dayshrom, Inc. Checks will be

Treasury, and has captured its ?Srdonat the°&e32f bffieslfofisSemter8 2a!
quite enthusiastic support.
The 1956.
CLIFFORD W. MICHEL,

watched. The maintenance of pripossibly harboring some political vate enterprise he will consider
at
implications, may have constituted as important as the capital at
million between

of 30c per

with

September

At

obiections of the U. S.

Co., Inc.

DOME

of government

for the purchase of equi-

firm

VIOUS

Italy, lending was
held up completely until late 1951,
pending economic recovery which
has since set in. As a result, $10

ket through the sale of convertible
He

Rprnverv

AWaitefl Italy 8 Recovery

.

In the

com¬

pany's decision to enter the. mar¬
debentures.

Ttalv'c

AwnitAd

v

Oil

previously

DIVIDEND

pro-

ties and for performing manage

Exchanges.

Stock

was

Walston &

V

The removal of the original

ment functions
P. C. Spencer, President of Sin¬
clair

members of the New York v and
Price

new

plications

capital market naturally tends, of
itself, to adjust the supply and
demand

the

Mr.

•

chiefly out of earnings.
on

of

ration, as well as the Bank, will
require that their managers also
exercise strong courageous adherence to : the sound
and narrow

adoption

increased call

operations

Co., 45 Montgomery Street,

Francisco

longer be financed

This

future

ter &

?

San

erations.

can no

The

Similar Tests

become associated with Dean Wit¬

to

International Finance Corpo-

ing disposition on the part of in¬
dustry to finance expansion with
debt securities where such pro¬
grams

Face

secured from Ex-

was

Corporation

private

foreign

9he
this

has

board of

day

directors

declared

a

regu¬

quarterly cash dividend of
Forty-Two and One-Half Cents

lar

(42 V2f)
tal

stock

able

on

Per

of the Company, pay¬

of

15,

November

stockholders
close

share on the capi¬

of

record

business

1956 to
at

October

1956.

the
15,

✓

R. E. palmer, Secretary

September 20, 1956

A

quarterly dividend of $.50^ per
the Common Stock has

share

on

been

declared,

26,

1956,

record
on

at

to

the

October 5,

payable October

stockholder^ of
close

of business

1956.

Checks will be mailed.
H. R. Fardwell, Treasurer
New York,

September 19, 1956.

W
-v- j-j*"

>

The Commercial and Financial Chronicle..

(1340)

.Thursday, September 27,195

r

trial facilities may charge them
for' tax
purposes
in
an

BUSINESS BUZZ

off

agreed period of something like
five years, instead of for a normal

•

•

•

period of around 20

This takes

A

Behind-th*-Scene Interpretation*
iron the Nation'*

ft

Yt

risk out of building such facil¬
ities.
\
:

V/1II

Sll lit

Capital

years.

lot of the long-term

a

X VU/

George Humphrey, the Secre¬
tary of the Treasury, is reported
th offer the most crucial

sition

exception is routine. That
consists of the housing agen¬
One

WASHINGTON, D. C.—When
the youngster cries because it is
meal time and you can't stop the
to

lollypop may shut
That is what the Eisen¬

get to,

him up.

a

given

hower Administration has

speculative' home-building

the

industry
which
has
become
trapped in the groove of. doing ;
business heavily under the gov-:
ernment - irisured and guaran-

-

a

.

•*

teed mortgage loan.
Now that money

4

/

glitter. Furthermore,
money is short all around. The
building
industry
has
been

credit

is 1.1 million units
With the lack

to guarantee

the in-

may

And
*

in

whisper that could

a

be heard from San Francisco to

speculative

Washington, .the
builders

intimating

been

have

Arthur

do

v

cratic

of not less
than 1.1 million housing units
was
shouldered by the Eisen¬
hower Administration because
This

"

sacred

there

goal

three

were

pressure groups

interest

housing volume, namely the

i\;>

.

rise

construction

of

"whole" to

as

tion,

-

>

!
■i

J"

suppliers and the labor
in the building trades over a
relative slackening in housing
construction has been avoided.
Labor and materials have found
other employment. This leaves
the speculative builders rather
lonesome.,..,
^
Y..

'

•

»

•

f

■;

this

In

of

advisers

to

4«

'

"

• ;

;

situation

a

took

hold

the

the

was

de-

.desir¬

front

against
nothing to
steam up the allegedly lagging
volume of housing construction.
inflation

;

kind

tached view that it
able

{

'

'

•

.

,

with two exceptions, the Presi¬
dent's

|

,

Many Opposed

-

and

do

,*/,

"

With

If all the members util¬

$875

funds
to

million to mortgage

which

can

be

advanced

lending associations from the

pate

mitments

National

the, Federal

Loan Bank

J

which is
for the U. S. Treasury

*

not

for* the purpose of buying up
the mortgages the U. S. Treas¬
ury has guaranteed through VA
or
insured / through FHA,
the
■situation is not so un-promising
for

the

In

The rub, however, is the more

HLB'$ have to pay4

on

the de¬

bentures

to

provide

they

sell

the advances, the higher cost to
the associations,
and the
less

profit

there

kitty.

On the 6-month Sept. 15

is

debentures,

in

the

tapping
Home

this
Loan

binges
of conservatism, the Eisenhower
Administration
proposed,
and
Congress enacted, in 1954, the
provision that any lending in¬
stitution placing or selling its

mitment

amount

So

a

nickle

there

of

or

dime

a

mortgage

here

money

,,

struction

couldn't
'

its

to

an

94,

whichv

age

V

the

1956

Eisenhower

VA

would

agreed.

_

tration

took

law to drop

advantage

requirement

to
2%.
drops to only 1%.
lenders

of

the

.*•

not

are

making

Now

vored

which

more

investments

the
or

on

the

sale

discount

in

more

half,

now

it

will

,

thereby

get

loan.

In

lollypop,
lollypop.

a

ap¬

man¬

will

that
of

the

ta>C

themselves
of clearing

accomplish the job
the way for all the projected in-f
dustria!
expansions that have
been held up;
c

Taxes

taxes

'

(Special to The Financial Chronicle)

United

amounted

974

to

representative

Write-Offs
•

WADESBORO, N. C.—Ervin U
Jr. is now affiliated
wi} -

taxes, $3,-

Stack

King Merritt &

May Revive

In 1957

a

f

block

a

Cofnpany, Inc.

With King Merritt

V

he

fc

Joins King Merritt

<

Users Conference reported.

Tax

local

was

"(Special to The Financial Chronicle)

$3,-

million, the National High¬

way

Compan

Mr. Bowers in tb

-

taxes

Securities

of Greensboro.

McDaniel Lewis & Co.

.kinds, fuel, licenses, excise, etc.,
state and Federal, brought, in
$6,987 million in the year ended
June
30, 1956.
Of this total,
Federal

,

past

>
all

of

j,

views.]

y With United Securities j

with

Vehicle

own

WASHINGTON, N. C.—B. Fran!
Bowers; has
become
associate

multi-fla¬

a

price.

mortgage

more

and

tight however, it

the "Chronicle's"

pay¬

cut

possibly,

work

pending

have

Some informed observers look
for
the
Administration
road¬

advantageous to sell

to the government and

to

of

yr.T

-

would

(Motor Vehicle

Mortgage

Association,
they' think this stock pur¬
chase requirement is in effect

get

lot

doubted

certificates

of

in the stock of the Federal Na-A

tional

be

may

lending in-,

lend, a little
"money.

013 million and state

;

to
a

.in-*

are

would be

Where both money and

an

Motor

enam¬

Democrats

power remains

encourage

manner

.

it'*

other

a

loans,

orange

„

if

so

expected

Ad- ;•

of

for

way

On* the

ahead.

approve

he

speaking they got, instead of

the stock purchase

give

builders

ment VA

put it at 2%.
Congress ;
On Aug. 9 the Adminis- i

to

fincnic-i plications for tax acceleration, t

brought hack the no-down

;

forced

specialized

stalled in power, they

down payments on all FHA and

ministration proposed that it be
allowed to cut this to 1%-but

little

Anheuser Busch

is

[l^his column is intended to re
bad been defleet the "behind the scene" intei
release of 2 percent-* pretation from the nation's
Capitc
points of required minimum ; and may or may not coincide wit

The

own

-

may

builders to seek and

its own debentures
instead of putting its hand in
the Treasury till, was designed
to* make the housing business
less dependent upon the gov¬
ernment.

ity,

This price was raised 2 points

on

With

Olin Oil & Gas

election

in order to get increased
capac¬

tion money would only pay him
out at 92.

manding

point

Universal Match

the

(Special to The Financial Chronicle)

JACKSONVILLE, N. C.—Phill

againsttax acceleration
certificates to be lifted after the

turn of

the

new

H.

Smith

is

now

connected

wi

King Merritt & Company, IncJ

year.

Under these

certificates, com¬
panies constructing new indus-

Delhi-Taylor

i

+

'

' *

'

«

•

TRADING MARKETS
**

Botany Mills

Texas Eastern Transmission

A. S. Campbell Co. Com.

Bank of America

Fashion Park

Pacific Northwest Pipeline Common

Indian Head Mills

Pan

agner^TefflTic

SCHERCK, RICHTER

Carl Marks

Member Midwest Stock

Bell

Teletype

gt

ac£

SL 456




St.

Louis

SECURITIES

50 BROAD STREET

Exchange

320 N. 4th St.
*

FOREIGN

COMPANY

mm

2f Mo.

TEL:
„

.

-

.,

,

GArfield 1-0225

i

Envelope
Morgan Engineering
National Co.

Bought—Sold—Quoted

-

T

United States

•JIG# b

AmeriggM^M^hur

W

HANOVER 2-0050

j

,

'

V

'

about granting tax acceleration

the

ing on better terms and the
lender who made the construc¬

together with the requirement
(but
with
exceptions)
that
raise

is

case

get permanent

be

months

com¬

under

in

money

construction

a1 discount

Colorado Oil & Gas

after

]

hand, past Democratic Admin¬
istrations have seldom been shy'

Housing Act at a price of
92, which would make it a stiff
price for the builder to get con¬

the government must

must

fee,

house

The initial
made

was

stituticns to

ored

and

•••••;

antici-i

fabricating
facilities, whose present capac¬
ity is tied up for months and

financing

the

once

equal to 3% of the prin¬

money

substantial

permanent

outstanding on the loan
when
placed.
This
provision

FNMA

will

com¬

1956

mort¬

FNMA

get

cipal

Since

banks paid 3.8%.

that

some,

"standby"

a

ready for sale.

of its moderate

in stock of

for

elsewhere

speculative builders.

one

In

System.

Vobservers

tion—assuming it is re-elected—-

FHA

commitments to buy FHA's and
VA's in case the builders can-"

Mortgage Association,
name

again via

:y'-\ ..-i'/*44

s

k

Home

sensitive to criticism

more

Competent

.

gages to
subscribe

amounts

advances total only $1.2 billion.
The new authority theoretically
adds

.

savings and

10% authority
it would permit HLB advances
to associations aggregating $3.5
billion.
Thus
far
outstanding

material

-

,

lend

to

money

and VA.

;■

FNMA makes

FNMA Easing

in

ized the present

from

come

ad¬

>:

government-sponsored

member

associations

to 10%.

good deal of the gripes

a

Loan

t6 12%% of their share
They already have
authority to make advances up

new

that would otherwise

to

Home

maximum

make

out under this blessing

go

may

arranged by Mr. Burns.

an

accounts.

a

monthly highs
despite
a
possible
moderate
Slackening in housing construc¬

-

pay¬

equal

"

gant

to

vances

loan

Things have changed the politleal patern.
With the inces-

;

authorized

banks

»•

'

down

to get

necessary

HLBB

building
labor, and the speculative build¬
ers.

required

loan of $9,000 or less on a

building materialmen,

v

the

FHA
house.
Only 16% of FHA's business is
done in such small packages.;
At Mr. Burn's prompting, the

ment

of considerable
an

of

minimum

important

voting strength with
in

/

"loosening" pro¬
visions was to drop from 7% to
5% of the purchase price, the
One

Nov. 6.

come

!

are

The Administration

out of the way this Administra¬

housing

Specific Terms "

steel

*

alone

approved only

or

up

grams;

STEADY AS A ROCK !

the

speculative
builders had better vote Demo¬

and

to
criticism; for
adoption
of
spending and welfare state pro¬

.

then

this,

about

something

by gosh maybe the

steel

facilities

the private enterprice system than it is sensitive

.Wo'*'

agencies (except IILBB) against
the field. Arthur won the battle.

Hiat if the Administration didn't
"

Administration.!

increased

is far

to it

opposed

and* the

Ad4

for favoring

slight

Burns

minded"

in driblets.

badly whenever any

the

-

on

loosening
in
mortgage credit announced last
week represented the victory of
So

wel£ '

as

Eisenhower

keenly sensitive
charge that it'is a "jbusi«J

fabricating
being held

is foiling with work.

economy

fiscat

bad

the main rea¬
why nearly $900 million of
applications for tax acceleration

segment of the economy is weak
in volume even if the overall

fall short of that
aaered goal, If not this year, cer¬
tainly next.
dustry

feels

matter of

a

son

except Mr. Burns, who is a man
who

perpetuity.

of FHA and VA money,
*.

ness

reported to be

was

as

is

This is probably

All the rest of the Ad¬

ministration

this

entire

the

to the

move

under

stances.

mum

Into

for

to loosen
present circum¬

to

unwilling

.

„

Secretary is under¬

ministration is

exception was
of the

Bank Board was

acceiv
certifi¬

Likewise the Treasury

as

Even the Home Loan-

Advisers.

howling that after all the mini¬
number of housing starts
the Administration has agreed

M

I

President's Council of Economic

much

too

down

of

policy.

Arthur Burns, Chairman

don't have

oppo¬

holding

amortization

The

principle

savings and loan associations, or
the bank supervisory agencies
other

-*

tax

is

approval

stood to feel that

for commercial banks;v;

have

rates

loans

VA

and

cates.

the

partment for the unionists,
Home
Loan
Bank Board

The

risen* the 25- to 30-year, 4%%
FHA

era ted

cies, who have the same tender
regard for their wards (so long
as they behave properly) in the
housing industry as the Inter¬
state
Commerce
Commission
has for railroads, the Labor De¬

you've got a place

because

car

which

sharply the

«

&

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

~

-,

Riverside Cement

Sightmaster Corp.

LERNER t CO.
Investment

Securities

10 Post Office Square,
Telephone
HUbbard 2-1990

Boston 9, Mass
Teletype
BS 69