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CANADIAN INVESTMENT OPPORTUNITIES FEATURED imt
1
■
Reg U. 8
Volume
New York
Number 5468
182
EDITORIAL
Can
pian his color?
in effect
bee It
leopard change his spots
a
or
m
And Investment
Ethio¬
an
;
This rhetorical question is today
being asked by
Dr.
blood
and
The topic of my
lecture
I should like to broaden
Investment
embraces
necessity
outlook.. And: the
-
)
Excellent market
survey.
*
it
a
high office in France and Italy, you appreciate
more the sustained good government and
sound political economy of Canada. With a cur¬
rency that bows to none in quality and accept¬
ability, and that j has steadily maintained a
premium over the U. S. dollar for several years;
a branch banking system of classic solvency, and
renowned responsiveness to depositor and com¬
munity financial needs; and an economic climate
.(devoid of capital gains taxes) where industry,
initiative and enterprise can flower and flourish,
/ Canada justly merits this semi-annual editorial
salute.. No wonder almost $6 billion in domestic
all the
little,
"The Outlook
did
I
it,
a
Or
a
before
us?.
If
is
it
great future .;
dying busi-
;
should find that the u
investment banking business holds
out a great deal
of hope for the
future, then you will, know that
your efforts, your labors, your en¬
ergy and your studies will be worth¬
while.
you
and outside funds will pour
into Canadian trade
The attractions and op¬
portunity for sound investment in the land of
the Maple Leaf are exceeded by no other nation
on this planet.
and
Marcus Nadler
other hand, you
find that this is a dying business, you will reach the
conclusion that while you are still young you had better
switch to another profession which holds out more for
If,
the
on
Continued
on
page
industry this
.
NOW IN
are
REGISTRATION
afforded
potential undertakings in
a
the
—
Forum
Finance,
Underwriters,
of issues
complete picture
our
on
New
and (*as
Huge Domestic Consumption of Oil
traditional
The
42
have been that of
♦A
talk by Dr. Nadler at
University, New York City.
42
year.
a
York
dealers and investors in
cor¬
with the
Canada seems to
producer of raw resources—
Continued on page 18
concept of
SEC
now
registered
"Securities in Registration" Section, starting
on page
51.
State, Municipal
in
and
U. S. Government,
State and
For
Securities
r
telephone:
STONE & WEBSTER
Municipal
a
HAnover 2-3700
the unusual combination
rich
and
yield
further
prospect
STATE
and
m
MUNICIPAL
Public Housing
Agency
COPIES OF OUR
of
NEW
of
BONDS
growth.
BOOKLET
Bonds and Notes
"ATOMIC ENERGY
REVIEW"
CHEMICAL
Analysis
Request
on
ARE NOW AVAILABLE
CORN EXCHANGE
ON
J. R. WlLLISTON & CO.
BANK
etTABLISHEO
MEMBERS
ANO
BOND
OTHER
New
STOCK
YORK
AND
llll
STOCK
THE FIRST NATIONAL CITY BANK
EXCHANGE
COMMOOITY
OF NEW YORK
EXCHANGES
DEPARTMENT
30 BROAD ST.,
115 Broadway,
N.Y.
Miami
NewYork 6, N.Y.
Beach
—
Bond Dept.
Teletype: NY 1-708
t.l.WATSON&CO.
ESTABLISHED
Active
Dealers,
Markets
Banks
Brokers
25
Orders
Executed
Canadian Exchanges At
&Cilt/ue€4t COMPANY
Dallas
STREET
NEW YORK 4,
N. Y.
DIRECT
WIRES TO
•
Plainview
•
San Antonio
BRIDGEPORT
•
Tyler
•
PERTH AMBOY
BANK
coast to coast
CANADIAN
General Gas
On
Analysta
All
MEW
Dohduoti Securities
MONTREAL AND TORONTO
YORK
upon
request
♦
Regular Rates
Goodbody a
MEMBERS
Abilene
from
CANADIAN DEPARTMENT
Stock Exchange
BROAD
offices
BONDS & STOCKS
SECURITIES
Teletype NY 1-2270
FIRST
Chase Manhattan
BROADWAY, NEW YORK 5
CANADIAN
Commission
New York Stock Exchange
120
Maintained
and
1832
Members
THE
HARRIS, UPHAM & C°
34
Net
DEPARTMENT
BOND
REQUEST
Members New York Stock Exchange
Rye, N. Y,
To
American
f
,
is
ness?"
give
SECURITIES
highlight of
When you view the political confusion in
Argentina, the v. Communist cabals in / Morocco;
Indonesia, and Indo China, and the rapid rotation
economic ?
the
reason
business with
namic
•
porate securities
DEALERS
1
.
-
this.
Most of: you are
young
men : entering this field of"
investment
banking and naturally V
the thought must have occurred to ■
you, "What is the outlook for this ;
business?
Are we. entering a dy¬
briefly,
to calmer and clearer thinking. Perhaps it
would help to set down simply a few of the
and
•
which of
Banking,"
way
page
i
■
facilities boon to investors.
-
given the title of "The
was
the topic as follows:
I should head
for
durable peace.
on
*
(1) growing population''
and (4) the changes taking place in industry
large demand for capital funds.
and
effort to bridge the gap between
establishing
Continued
•
than! $6 billion in foreign and domestic capital in
.
trade. 7 Foresees
Economic Outlook."
the East and the West in the hope of
Confusion and conflict here at home must
Featured
.
in
•
Republican Party who are deeply disturbed lest
their party becomes "soft on communism" — as
they have so roundly accused the Democrats of
being, and some are now accusing certain of their
own
leaders of being. The immensely popular
head of the Republican Party has nonetheless
a
iNadlerr though stating the outlook for investment
economy,
keep one's head, and never for a
moment lose sight of basic principles. And it is
at just such a time that there is the greatest dan¬
ger of confusion and befuddled thinking — the
more so since these questions' are
eternally be¬
deviled with politics. There are able men in the
an
'''
>
Extent of investment opportunities abounding in Canada
dramatically illustrated in fact that it will attract more
accompanied by higher living standards; (2) increased
emphasis on research; (3) the government's role in the
time to
far in
•
5 to 127 years
inevitably be sacrificed in a life-and- •
struggle between the East and the West. :
Argument over these questions;1 isv intense and
grows more so as time passes. r ^
r
gone
,
,
And Financial Growth
Finance,
able factors in the economy as:
death
!
*
ing the automobile industry,''; and discusses such favor-
that would
a
"
the 1
present year. Upward surge of all phases of nation's <
growth cited. ^Tabular record of Canadian companiesvi
which have ! paid' consecutive cash dividends from r
high officials of the Eisenhower regime, that it
may be possible to do business with the Kremlin,
It is
..
Copy
banking is good,'points out the deceptions of business
forecasting and the keener: competition developing in /,
the underwriting and securities business.. Urges "watch¬
| determined to enslave the world. Others find em
jcouragement in the hope, apparently shared by
./
'
a
Canada's Industrial, Mineral
Banking
Business Administration
of
"
;
r
New York University
,v
,
the world the treasure and the
School
Cents
Canadian Investment Opportunities
By MARCUS NADLER*
|; Professor of
Graduate
Jsome of them, deeply fear that we shall be "taken
in"' by wily negotiators from the Kremlin, and
presently find ourselves at the mercy of a relent-'-:
fless and perfidious group bf doctrinaire- zealots
save
-
;
bona
least
many who doubt the
fides of the Soviet's new look. They, or at
and
Price 40
7, N. Y., Thursday, September 29, 1955
The Ontlook for Easiness
As: .Me
i
Office
Pal
STOCK
Co.
EXCHANGE
115 BROADWAY
1 NORTH LA SALLE ST.
NEW YORK
CHICAGO
6EPORATI071
IRA HAUPT & CO.
Members New
end
York Stock Exchange
Exchanges
other Principal
111 Broadway,
40 Exchange Place,
Teletype NY 1-702-3
New York 5, N.Y<
WHltehall 4-8161
WOrth 4-6000
Boston
N- Y- 6
Teletype NY lr2708
Telephone:
Enterprise 1820
2
(1274)
The Commercial and Financial Chronicle
For Banks, Brokers,
The
Dealers Only
American Express
Security I la
Best
This
Forum
A continuous forum in which, each
week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
Brown-Allen Chemicals
Central Indiana Gas
(The articles contained in this forum
they
are
Dan River Mills
be regarded,
to
offer
as an
intended
not
are
be,
to
Week's
Participants and
Textron
Alabama &
Louisiana Securities
American, Inc.
Morton
Globus, Market Analyst, Drey¬
nor
—
fus &
sell the securities discussed.)
to
Thursday, September 29,1955
.
Their Selections
in the investment and
Central Public Utility
.
.
Co., New York City (Page
2).
Israel Continental Oil
MORTON GLOBUS
Market
Long-Bell Lumber of Mo.
and
North American Royalties
Other
Principal Exchanges
Textron American, Inc.
Steel
Portsmouth
On
Pyramid Oil & Gas
Tennessee Gas Transmission
Travelers Insurance of Hartford
United Artists
the
manufac-
Associate
of
ting,
New York Hanseatic
stery
Stock
to
saws,
the
which
pumps,
120 Broadway, New York
WOrtb 4-2300
private
5
branch
Its
d
n
furniture
Teletype NY 1-40
to
Wires
and
industries
1954,
Jan.
Dalmo
of
Rights K Scrip
radar
antennae
equipment
and
acquired
was
for cash.
On March
Since 1917.
25, 1954, Textron for
$1,750,000 acquired all the capital
of the M. B.
Manufacturing
Company, a leader in its special¬
stock
ffipONNELL&fo
York
American
ISO
Stock
Stock
field
mounts
of
and
aircraft
engine
vibration elimination
equipment.
Members
New
ized
Exchange
Exchange
BROADWAY, NEW YORK 5
TEL. REctor 2-7815
On
June
quired
29,
the
1954,
Textron
of
assets
ac¬
Newmarket
Manufacturing Company for 45,000
shares of
its
preferred stock.
This company manufactures
rayon
and acetate goods.
On
Trading Markets
American Furniture
Company
Alabama-Tennessee Natural
Gas
Company
Commonwealth Natural Gas
Company
'
Dan River Mills
Feb.
merged
24,
with
Textron
American
company
American, Inc.
of
to
purchased
to be running at the rate of
$85,000,000 and earnings at an annual
of
approximately
before
taxes
$2
or
$7,500,000
per
common
share after preferred dividend re¬
The earnings records of the tex¬
tile companies comprising Textron
American
have
been
however
appears
of
$89,000,000 and total
$151,000,000. The former
synthetic
Mills
was
outlay
of
ferred and
erratic.
through
It
well
fabrics. The merger
Woolen and Robbins
accomplished by
cash, debentures,
the
pre¬
stock.
common
the
textile
industry.
V-
Food Fair
with Textron
merger
sold.
Mills
Textron
Co.
to-date
in
Three
of
the
re¬
and
the
Textron
has
arranged
to
tem of Western Union
medium
its
of
of
own
STeeneaniCompam^
ESTABLISHED
37 Wall St., N. Y.
1929
Tel. HAnover 2-4850
contrast
that of
—
TRADING
MARKETS
Philippine Oil Development
Lepanto Consol. Mines
Mindanao Mother Lode Mines
Marinduque Iron Mines
M. s. WIEN & CO.
Established
1919
Members
New York
Security Dealers Ass'n
1
Exchange Place, Jersey City 2, N. J.
Tel. HEndmon 5-9400
New York City
Teletype J CY 783
Telephone BArclay 7-0045
believe
that
Textron
the New York Stock
on
the
Federal
business
to
and
the
own
producing
a
Capitalization of Textron Amer¬
up-
out¬
busi¬
wide
consists
$38,070,000 prin¬
long-term debt;
652,219 shares of $1.25 preferred
(convertible into common on a
shares
of
ferred
of
a
Series
Output is in
staple type goods, with an annual
capacity anproximately 50,000.000
sidiaries
linear
require
Rico.
offer
for
Columbus, Ohio,
Office of Bail, Burge & Kraus
Members, New York Stock Exchange
Norwich Pharmacal
The
appeal
macal
lies
for
in
of
exist
yards
000,000
of
yards
cotton
of
and
139,-
synthetics.
Not
only did Textron become
the fourth largest textile
producer
by virtue of the merger with
the
Textron
a
Woolen^ and
resultant
American
also
Robbins,
company,
acquired
tax loss carryover of about
$40,-
000,000,
and
working capital
approximately $48,000,000.
Substantial
sulted
from
savings
the
have
elimination
of
ployees.
first
of
value
of
over
American
its
and
employ over 13,750
It is believed to be
publicly owned
its
sub¬
em¬
the
company
directors
to
own
to
at
and
leader,
owns
over
quarter,
ter, and just declared another 25c
dividend payable on
Textron
share
ended
June
company
Oct.
American
for
the
30.
It
earned
is
1, 1955.
earned
six
months
believed
over
69c
the
$600,000 in
duplicating and overlapping mer¬ July and should earn 60c to 70c
chandising,
manufacturing, * en¬ per common share during the
third quarter.
gineering and research facilities.
Textron is building a new lowcost
woolen
plant
at
Barnwell,
South Carolina,, which is
designed
to
produce
over
$20,000,000
of
both staple and
semi-fancy fabrics
with
production
scheduled
for
early 1956.
Moreover
icy
of
and
varied
as
a
result of its pol¬
continually
seeking
business, it is under¬
stood that Textron American
soon
add
new
another
sound,
managed and profitable
will
well
company
Exchange
Exchange,
Board
New Orleans Cotton
and
other
*
Inc.
Trade
of
Exchange >'
exchanges
sumption
new
Y.
drugs
from
base
of
a
furans.
Cotton
NEW
-
the
company's exelusive nitro-
r.
Chicago
Miami
„
Exchange Bldg.
YORK
Beach
Fla.
Geneva,
-
•
Y.
Pittsburgh
,Coral
•
•
N.
4,
Detroit
•
Sollywood.
*•,This growth
"is not just a
Beverly
Hills,
9aL
Switzerland
Amesterdam,
■"
;
Gables
Holland
1
,
-
future;' possibility v but .is
already in
e
Henry
i dence.
v
Sales and pre¬
tax
earnings
Weissenbach
'"have
creased
each
i
since
.year
Pyramid Oil &
n-
1947
and
profit
margins
(pre-tax)
have widened
considerably. With
sales gains of 29% and
44% regis¬
tered
the
in
1953
and
company's
1954
by
Gas
of
one
(Eaton
56%
gain
projected for 1955, the future
may
be
upon
and
a
Capital Stock
us.
Norwich's
Corp.
(DELAWARE)
divisions
Laboratories)
net
income
showed
the
and sales of
in
j
.
the
gain
of
quarter
of
a
same
Bought
—
Sold
—
Quoted
$24 million and
earnings
of
share
projected for 1955. Pre¬
margins in the future
are
profit
will
exhibit
ment.
of
approximately
the
and
marked
a
In the next few
highly
chemical
about
$6.5
$3
improve¬
ethical
specialties,
million,
a
Vears sales
profitable
now
be
may
even
growth
greater rate.
in
the
on
sales
of
PETER BARKEN CO.
ex¬
pected to increase rapidly. Gains
in net income should be
made at
Superimposed
paid 10c in the first
25c in the second quar¬
human
of
100,000
Textron
Cotton
York
animal
made
an
shares.
Exchange
Exchange
New
development
and
tax
least 1,000 shares of stock. Royal
Little, Textron American's founder
per
re¬
book
a
share.
Stock
Stock
Chicago
the
for
1954
per
York
American
con
"B", 4% preferred (par
shares with
New
Phar¬
Commodity
quarter
common
Members
Norwich
in
,
1856
H. Hentz & Co.
Company
gains purposes
"jackpot" potentials
the
which
Broadway, N.Y. 6 COrtlandt 7-5680
Establised
capital
over
2,889,014
111
WEISSENBACH
44%
pre¬
pos¬
Manager,
June
4%
Brokers & Investment Bankers
capital appreciatioxi.
HENRY
Resident
26,635
88,578
Established 1897
Home Office Tokyo—70 Branches
Exchange,
outstanding speculative
sibilities
shares
"A"
$100),
and
Textron
basis),
series
a
(par
$23.50
Puerto
of
s^are-for-share
utilizes 15 modern low cost plants,
12 of which are down South and
in
of
amount
Ameri¬
shares, which sell around 20
ap-*,
grossed.
$100),
but
FIRM
I
through the
Cable
Securities Co., Ltd.
1
can's
write
or
Yamaichi
corporation taxes.
new
and
Union
variety of textile fabrics of natural
and synthetic
fibres, the company
American
For Financial Institutions
million
Western 'Union
both
1
Call
approximately $40
before
being subject to
earn
Communications Commission. The
Western
2
Perfection Industries
to
pany
sys¬
the sale is subject to the
proval
stockholders
cipal
investors with knowledge
Japanese potential.
of
share
per
since a capital loss
will permit the com¬
pur¬
chase the international cable
and
a
earnings
,
ican
of
former
modern
are
As regards Textron's
ness
Lindly Co.
in
have nnusual appeal
to investors with vision—
marked
„
are
moded mills of American Woolen.
Properties
Gulf Coast Leaseholis
increase
offices
may
Textron
show
v
1954.
Robbins
Corpus Christi Refining
industry
could
inating the wide swings of earn¬
ings due to the cyclical nature of
American, 11 of Woolen's 24 mills
the
maining New England mills
operating profitably today.
The plants and equipment
Trading Markets
textile
its
*
have been
LD 33
the
American
program, Textron
its way towards elim¬
on
$12,653,000
and
netted
$3,500,000 before income taxes in
Since
Lynchburg, Va.
Tele. LY 62
in
branch
our
SECURITIES
dynamic
leaaersnip.
without a cyclical upturn
or
diversification
is
Direct wires to
with the prospect
further profitable ac¬
quirements.
a
than
companies
market). Total annual sales
these companies are believed
Woolen
called
Textron
with a net worth
Witn
that
note
shares of Textron American in the
rate
shown
witn
pany
a
open
of
pattern
NY 1-1557
Orleans, La. - Birmingham, Ala.
Mobile, Ala.
and
years,
wholly-*;
owned subsidiary, Western
assets of
Union;
Cables, Inc. The purchase; prige ;
company
was
one :of
America's
leading woolen manufacturers, the is $18,000,000, with an indicated
latter an important manufacturer cash
outlay ■ of only $2,000,000,
more
of American
Scott, Horner &
Mason, Inc.
1955,
Company and Robbins Mills into
new
at
HAnover 2-0700
New
quisitions, Textron American
merits being called a growth com¬
dealers
are
the
of
carryover
interesting
quired
leading manufacturer
a
airborne
related
2,000
sales
properties without issuing a share
of stock (in fact a number of the
^operating personnel of the ac¬
Morton Globus
Victor
Company,
of
8,
11 the
a
stock
two
56
within the last two years Textron
has
acquired
five
non-textile
(20%).
On
is
It
and
annual
industrial
(
view
In
and
through
growing
approximately $20,000,000.* particularly
rate of
mattress
Principal Cities
Specialists in
sells
offices
outlets.
a
blowers
generators,
<
19 Rector St., Mew York
6, N. Y.
fast
by its acquisition of eight indus¬
trial
companies within the last
of
excess
its
empire.
July 11, 1955, Textron pur¬
the 30 year old Homelite
Corp.,' a manufacturer of chain
auto mobile
Exchange
to
of possible
(80%)
American
Members New York Stock
Exchange
Members American Stock
Exchange
On
prin¬
cipally
Member
in
Steiner, Rouse & Co!
Columbus, Ohio (Page 2).
chased
filling,
sold
1920
estimated
Pharmacal
Company —
Henry
Weissenbach,
Resident
Manager, Ball, Burge & Kraus,
$1,000,000.
bat¬
Bought—Sold—Quoted
Norwich
ment, including electronic timers,
rocket
launchers, rate of climb
indicators, aerial camera maga¬
zines, tank gun mounts and other
precision devices, was (acquired
been
f
padding
uphol¬
and
Corporation
April 5, 1955, Ryan Indus¬
Inc.,
a
manufacturer
of
various products for the govern¬
.
Sept. 30, 1953, Textron ac¬
quired the business of F. Burkart for the purchase price of $1,035,200
Manufacturing Comoany at a cash, plus 25% of pretax earnings
price of $1,800,000. The company for a period of 10 years. Pretax
is engaged in
earnings of Ryan for 1955 have
ture
Established
Analyst
Dreyfus & Co., New York City
Members New York Stock
Exchange
Mansfield Tire & Rubber
'
On
tries,
32
Broadway
,
New York 4, N. Y.
WHitehall 4-6439
steady
60
some
pro¬
prietary products led by "Peptoand
"Unguentine" are
Bismol"
both
a
chemical
pharmaceutical
Laboratories)
ucts
based
and
ethical
an
division
(Eaton
marketing
prod¬
furan
synthetic
on
chemicals developed by the
com¬
pany.
Growth
past
of
the
company
the
rapid
two
divisions.
gain
celerating
in
sales
are
of
growth
introduced
Continued
may
as
be
new
and
on
to
1
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Yecur
Performance
of
35 Industrial Stocks
these
Continued and
pected in the future
ucts
in the
few years may be traced
N. Q. B.
ac¬
prod¬
existing
page
POLDER ON REQUEST
ex¬
47
National Quotation Bureau
Incorporated
46 Front Street
New
York4,N.Y.
182
Volume
Number 5468
.
.
The Commercial and Financial Chronicle
.
\
LETTERS TO THE EDITOR;
Comments
;
(1275)
?
LicHifnsTfin
-
^
Articles and New*
paSe
..
■
Letters received
as a consequence
Jby »Dr. Sakolski
on
i»
i
-
of the,two article
the subject of variable annuities
'
f
The Outlook for Business and Investment Banking
^ —Marcus Nadler
reproduced herein.
^
^stocks and with the income to the recipient thus being, of < avary-
*
Variable Annuities," was published in the issue of August 25. The
basis for Dr.Sakolski's discussion of the subject was the presenta¬
tion
'
of applicable bills in the. New Jersey
(for the second time)
of
America. The bills have been with a committee of the legislature
all during the current session, but no action on them has been
taken and no move has been made by the Chairman of the committee to bring them to the floor of.tne Legislature.
•
'
6
With Warrants in Canada—IravU,.
<
?
i,
v
v
*
Norman
F.
Financial
Dacey
Associates
&
Consultants
Trustees
&
Bridgeport, Conn.
For
time
some
some
high-premium annuity-type poli-
ume
cie
and
s
the
toward
cheaper policy
forms, partic¬
ularly
term
insurance.
has
This,
re-,
the
flected
growing reali¬
zation by the
American
people
life
is
that
insurance
essentially
protection and
that
'
F.
Norman
they
should
Dacey
little
sible
it.
for
As
as
result
a
pay
of
pos¬
this,
two years the insur¬
companies have been falling
in
Reporting
shift
"distinct
a
limited
from
business
unprece¬
an
contest.
rate-cutting
dented
:
other
each
ever
of
payment
endowment
forms," the
New York Life reduced its rates
life
and
over
it
Because
had
our
-
.
v
7%
tuted
in
sales
of
its
ordinary
total
1943, was
up
by
to, 10%
1947, 14% in 1950 and is climbing
steadily.
The
Mutual,
which
pioneered the retirement income
policy and spends millions adver¬
tising nothing else, now admits
"an
increase in the percentage
the
ex¬
retirement income
and
insurance
term
pense
other
of
sold
at
of
endowment types."
Acknowledging that whole life
and
term
policies, which in 1947
represented 71% of its total ordi¬
nary sales, had climbed to 82%
by
1953
and
were
now
even
higher, another giant of the in¬
dustry, the John Hancock Life,
says, "We have noted an appre¬
ciable
shift
in
incidence
the
its ordinary rates
specialized in
an
Canadian
and
securities
and companies listed
includes
and
insurance"
second tabulation
a
Comments
hoping thereby to en¬
the public to resume pur¬
most
of the
it was more
apparent than real—a correspond¬
Like
forms.
the
was
The
buyer right back
where
Equitable
its
reduced
brought out
rates
a
Life
and
5%
-
.
As
recently
March
as
the Prudential
that
had
it
noted
Reports
on
High Plateau
Salt
Fopd Fair Properties, Inc. * *
300,000 Yearly
All-Time
Of
37
Gulf CoastLeaseholds, Inc. *
Hycon Manufacturing Co.
High, According to 1955 Edition of Rand,
McNally's "Blue Book Bank Directory"
this
What May We Expect?
Oil
58
_—
important
change" in buyer preference.
Pacific Uranium Mines Co.
*
This
all
adds
to
up
Regular Feature*
As We See It
simple
a
Bank
people just aren't buying
insurance as an investment
and
(Editorial)
The
more.
pally
to
funds.
insurance
booming
the
When
developed
some
Business
com¬
with
44
Dealer-Broker Investment
Request.
on
*
share
invest¬
Wilfred
Qur Reporter
of
Our
Public
Utility
in
Now
ST., NEW YORK 4, N. Y.
39
Chicago '
•
Registration-
Security
Worcester
•
Old
Hickory
Copper Co.
57
The Market
16
The
.
.
.
and You—By Wallace Streete
Security I Like Best
2
The State of Trade and Industry
Washington
38
and
4
You
Recently acquired
60
able
Twice Weekly
1
Drapers' Gardens, Lpndon,
land, c/o Edwards & Smith.
C.
Park Place, New York
2-9570
Reentered
ary
25,
as
1942,
of
the
post
office
at
DANA SEIBERT, President
Market
in United States, U.
Territories
and Members
Thursday, September 29, 1955
Other
S.
of
in
Union, $55.00 per year;
Canada,
$58,00 per year.
Countries, $62.00 per year.
.» Dominion
'PQ"k
.
and
.
.
$37.00 per year. (Foreign postage extra.)
statistical issue — market quotation
corporation news, bank clearings, !
Note—On account of the fluctuations in
city news, etc.).
the rate of exchange, remittances for for¬
Chicago 3,
El.
South
La
Salle St.," eign subscriptions and advertisements must
(Telephone STate 2-0613);
be
made
Per Share
in
.
Report Available Upon Request
Quotation Record—Monthly,
and
135
SI.SO
Publication*
records,
Offices:
Around
of
Other
Every Thursday (general news and ad-'
vertising issue) .and every Monday (com- ,
state
Over-the-Counter
Subscription Rates
Pan-American
WILLIAM
producing property
Traded
New
Subscriptions
Possessions)
favor¬
great promise.
second-class matter Febru¬
at
on very
100% interest in Ca-
borca Mine, a
Eng¬
York, N. Y., under the Act of March 8,1879.
7, N. Y.
to 9576
SEIBERT, Editor & Publisher
HERBERT D.
terms
Copyright 1955 by William B. Dana
Company
CHRONICLE
Reg. U. S. Patent Office
-
E.
COMMERCIAL and
FINANCIAL
.
Other
V
51
Offerings.
59
♦
Glens Falls
For
39
con¬
page
TELETYPE N. Y. IS
•
NEW EXPANSION
59
—
Securities Salesman's Corner
"guaranteed," without
tide, a small seg¬
the insurance industry
to
4
Securities
Prospective
Direct Wires
Philadelphia • Chicago • Los Angeles
45
Securities
Securities
on
May—
Reporter's Report
Railroad
the
Continued
Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1820
16
•
Governments
on
inc.
40
48
—
Observations—A.
tracts were
ment
Funds
News About Banks and Bankers
young."
their
Mackie,
10
Mutual
exhausted every argu¬
in the book, including the
stemming
8
50
Having
that
&
12
From Washington Ahead of the News—Carlisle Bargeron
that the insurance com¬
panies which were providing the
coverage
on
these insured in¬
vestment plans were "devouring
one
Recommendations.
Indications of Current Business Activity
funds
combined
sourly
threadbear
8
HA 2-0270
York Life underwriters remarked
ment
Singer; Bean
60
Einzig: "Expanding Production Causes Inflation"
industry's cup of
bitterness
was
really
running"
over. A representative of the New
own
Bookshelf-—
Coming- Events in the Investment Field
insurance
their
Man's
mutual
the
of
plans which
insurance
the
Schenectady
Request.
on
New
York
funds.
'
We maintain trading markets in more ]
than 250 over-the'counter securities
.Cover
Stocks
Insurance
Circular
**Prospectus
—
life
life
Co., Ltd.
Its
sponsorship of the variable annu¬
ity suggests that the statement
may not be entirely accurate.
fact
!
Israel Continental
48
(Boxed)-
City
.Corpus Christi Refining Co.
21
Resources, Deposits and Capital-Funds of U. S. Banks at
a
Lake
19
National Bank Deposit and
on
Teletype: NY1-4643
Direct wire to branch office in
Bank of Nova Scotia Puts Canadian Demand for Cars at
r
Broadway/ New York 4
Digby 4-4970
3
-
Assess
plete
•
(Letters to Editor relative
Sakolski)
Comptroller Gidney
.
insisting
was
"no
42
17
•
Members New York Stock Exchange
Nashvills
Members Salt Lake City Stock Exch.
then
policy With
new
15% reduced rate.
year,
1
':
J. F. Reilly & Co.,Inc.
page
Purchasing Agents See Business Holding
first-
Spencer Trask & Co.
•
L
127 years
:7..' Wastes
before the big "reduction.".
giant
t
''
showing the banks
Air Force Officers Report Method of Safe Disposal of Atomic
ing reduction in the dividend rate
he
i
■
.
Higgins, Inc.
(Table I, page 21)
35) with respect to con¬
from 5 to 10 years.
to
Variable Annuities
on
to articles by Dr.
advertised reductions,
left
■
Spokane Stock Exchange
chase of the more expensive pol¬
icy
-
a
PREFERRED STOCKS
Boston
tabulation
a
(Table II,
secutive cash dividend payers
REetor
•
Gulf Coast Leaseholds
*
the Canadian Exchanges which have paid
on
consecutive cash dividends from *10
25
Albany
17
INDUSTRIAL, MINERAL AND FINANCIAL GROWTH
WILLIAM B. DANA COMPANY, Publishers
25 BROAD
'
15
Article starting on the cover page "Canada's Industrial, Mineral and
Financial
Growth"
deals
with
the
investment
opportunities in
ago,
years
courage
in
TELEPHONE HAnover 2-4300,
Corpus Christi Refining
Age—August Ihlefeld______ 14 •
CANADA'S
flat 10% be¬
effect barely five
in
those
low
Basic Atomics
;
Published
have
i
Cinerama1 Productions'
The
For many years we
v
.
ment, they sold like hotcakes and
Phoenix
12
Bargaining Future?—Jules Bachman 13
Mutual Life of New York reduced
any
to 10%.
_i.
Canada Rises From the Recession—Hon. Walter Harris
The biggest-of-thempanies
see
money
which
once'
iall, Metropolitan, noted "a marked
poured into their coffers now be¬
shift toward protection policies"
ing directed
elsewhere, princi¬
-—term
insurance, which consti¬
up
■
Spending Needed to: Keep Up With Growing ProducUvity—Arno, H.,t Johnson—
"experienced
terms
10
'
More
,
increase in the relative vol-
of
v;
«•
^Savings Banking in the-Dynamic
as
for the past
ance
observed
STREET, NEW YORK
11
>
•-
Is There a: Ford in Your
appreciable period of years."
industry has been grimly
conscious of the trend away from
surance
*
when
Obsolete Securities Dept.
99 WAUL
.
priced plans and those of the in¬
vestment type.
While this shift
has occurred slowly, it is quite
marked
the life in¬
now
A
:
.
Industries
Expanding: Production Causes Inflation—Paul Einzig—
.
sales between relatively low-
our
-
*
—Nicholas E; Crane—
1
'
•
-
NORMAN F. DACEY
us!
9
The Economic1 Outlook for Various
•
; "that are received.—Editor.
7
the Motor Carrier'
New Patterns of World Trade' and Finance—Guenter Reimann
-
fields, but also among bankersi members of the SEC and i
State regulatory authorities, and in economic circles generally. I
Since the appearance of Dr. Sakolski's articles, several letters com- i
meriting on the instant subject have come to hand. These are \
reproduced below and we shall be pleased to present any others ■
r
on
Teiephone: WHitehall 4-6551
insurance
-
Cobleigh___
on
>
don't dump
junk
your
/
>
principle involved in the proposal has for some time been
The
if you
6
Industry—Nicholas? E; Peterson.
V
subject of continuous comment,mot: only in the securities and
,
a.
Policy—M. S. Szymczak—
Debts^Roger W. Babson—
•Changing'Times and -Their"Effect
,
♦
FAST BUT FURIOUS
r
State Legislature at the behest of the Prudential insurance Co.
:
*
5
Your Financial
inQ nature, was stressed in twtf articles by Dr. A. M. Sakolski: The '
first article^ "Variable Annuities: A Dangerous Experiment" dppeared in the "Chronicle" of August 4; and the second, "More on.,
.
We're not
"
Cover
___
A Review of Credit and Monetary
;
v
.___
Copper Mining Prospects in Canada—Edmour A. R. Germain-
The nondesirability of permitting insurance companies to issue
sot-Palled "variable annuities," backed by investments in common t
\
AM) COMPANY
industrial, Mineral and Financial Growth——Cover
Canada's
t
;v-;~
3
INDEX
Variable Annuities
on
V*
-
GENERAL INVESTING CORP.
80 Wall St., N. Y. 5
BO 9-1800
4
(1276)
The Commercial and Financial Chronicle
after
occurred
doldrums,
Observations...
"Eisenhower
which
MARKETS SELLING EX-REPUBLICANISM
(This article
is
chances
Eight
of
of
based
the
on
assumption that
as
health, the Democrats'
the Presidency in 1956 are immeasurably
enhanced, if not actually ensured).
it
ago
was
"bearish"
four
elec¬
an
have
averages
factors
wonder
tion
result,
not
to
heart' attack,
a
unexpectedly kept
lieu of
and
resolving complicated
pros
cons.
.1
-
'
1 i
from
c a n
White
explain the subsequently rising
•
over-all, the market com¬
munity was pervaded by frus¬
House
tration
Noontime
.
For
But
occup ancy.
friendly
W
d
e
n
Nov.
esday
witnhoiuing
t.ie
over
ment Probabilities Under
1948
Government—Truman
Ordinary Election,"
the
Implications
longer-term
Between
it
now
and Election time
Administration's
policies will
be
governed
by the
political knowledge that it is
cap¬
a
10-
mere
now
20-to-l shot, in lieu
before last weekend
or
Deal-surfeited
tion
post-election
of
its
article by one of the Street's very
of
top commentators.
highly confident odds-on fav¬
orite.
along with the
rest of the
na¬
of
typical
a
During the week following that
tion's 25-to-l
1948
f
went additional
casters
o re
(i
n c
n e
1
u
d ing
wspapers
which had
en-
election
the
to
lows
level
Dewey victory),
the
previous
attributable to favorable
were
unbelievable
a
stunned by
their
of
news
Party's upset.
The
despair then was
quickly manifested in one of those
major market busts —the most
violent
Sept.
since
9,
the
epochal fall
1946 —to
the
tune
on
of
trebled
volume, a late tape with
openings delayed for three to four
hours, and (as now) selling con¬
centration
dumping
on
by
market
"best"
sey,
break
on
in
the
broadest
record until then.
The
a
and
program,
pletely
new
com¬
prospects
for corporate
profits decline, with
higher break-even point for in¬
dustry;
increased
taxation;
in¬
a
creased
government
further
labor
liberalized
and
with
dividend
not
to
long after
that
the
the
ideal
of
balanced
a
of
area
former
decisive
turn
Longer-Term
November
of
tration
'
1956:—the
also
The
bond
push
market
remained
bullish—
subsidies
on
toward
re¬
Adminis¬
be
groups,
money,
be¬
Outlook
Democratic
a
will
favored
1947.
to
various
rises,
wage
and
general
a
higher prices.
Forgetting
the
personalities
of
stable;
partly
in
reflection
of
seeming assurance of continuance
choices; and foregoing the temp¬
of
tation
the
government's
pegging
op¬
erations.
The
1949
year
started
off
with rising prices following the
unexpectedly mild tone of Presi¬
dent
Truman's
to the
By the middle of 1950,
messages
intermittent
25%,
reactions, the
registered a net gain of
and
the
of
as
end
of
the
Truman-Fair Deal Administration
in
1952,
the
alternative
erence
new
an
additional advance of
30%.
ment
*
judgment:
is
to
even
be
more
expected
shocking
Republican's
Whereas
of
news
the
drastic
sector!
But bonds too, particularly taxexempts,
should
advance
with
easing money rates. Commodities
also—via
return
a
following
our
rigid
farm
resume
their
use
over
long-term.
Election
production
for
the
of the
comparable week
With the exception
most materials
were
of
1954,
m
somewhat limited supply
a
As for the country's labor force, it
automobile workers
total
claims
for
of copper,
plentiful.
idle
were
for
noted that while many
change-over period,
declined noticeably.
was
the
unemployment
model
insurance
New claims for state unemployment compensation
dropped
1,300 to 159,700 in the week ended Sept. 17, the first time in nearly
three years the number has dropped below
160,000, the United
States
Department of Labor reports.
Eighteen states, led by Michigan, Wisconsin and Indiana, re¬
flected reductions from the preceding
week, while Ohio topped
the states showing more initial claims, it stated.
In the preceding week ended
Sept. 10, the total number of
unemployed persons drawing state compensation declined 9,300 to
904,000, department figures showed. It attributed the reductions
principally to favorable seasonal influences, further recalls in
damaged plants and increased activity in food processing.
llood
Living
costs
changes
this
fall
Bureau of Labor Statistics noted.
nounced
decline
a
of
0.2%
in
will
be
"fairly
This forecast
consumer
was
narrow,"
made
as
*
prices in August.
sanship!
This
carried
the index down to 114.5% of the 1947-49
base, compared
with 114.7% in July and 115.0% in
August, 1954. Seasonally lower
food prices were mainly responsible for the August
drop.
During the first six months of this
according
Commerce, spent 94 cents out
to the United States Department of
of every dollar of their
year consumers,
1954 period. Most of the
increase, it stated, went for durable goods, mainly autos. Steppedup consumer spending is regarded by many economists as a major
factor
is
in
the
1955
business
buying too much
into
on
but
boom,
credit
and
some
the
also feel
economy
may
the public
be headed
period of inflation.
a
Steel producers are still trying to match
production with order
volume, but incoming business is setting a terrific pace that is
likely to continue into 1956, states "The Iron Age," national metalworking weekly, this week.
The mills are handicapped by a shortage of
steelmaking ca¬
pacity, and expansion programs now taking form will not make
themselves felt until next year.
These programs will be carried
through despite government action in clamping the lid on fast tax
for steel, declares this trade authority.
writeoffs
For all intents and purposes, virtually all steel products are
sold out for the balance of the year. Allocation cutbacks instituted
by the mills have helped to bring deliveries
promises.
more
have
been
rebuilt.
Delivery lags have reached the point where
Some
are
to carry
to
get
even
large
con¬
their ingenuity to keep production lines going.
resorting to intra-company trading of critical products
have to
sumers
into line with
The demand is still there and it will continue strong
inventories
until
them
use
over
emergency
tight spots.
Others
are
still paying
tonnages from warehouses,
reports
a
premium
this
trade
inventories,
strong demand
however, are declining.
The dual
slow deliveries from the mills
them in a position w,here they are receiving from a
third to a half less steel than they are shipping.
Pressure from the railroads has opened up plate mill schedules
pressure
of
and
have placed
for
With Merrill Lynch
result
freight
car
builders
>even
though these orders hit the mills
•
Continued
(Special to The Financial Chronicle)
DAYTON, Ohio—Hubert A. Estabrook, Jr. is with Merrill Lynch,
Pierce, Fenner & Beane, American
Building.
We
are
WE ARE PLEASED TO ANNOUNCE THAT
pleased
the
With Slay ton in Dayton
on
page
to announce
opening of
an
(Special to The Financial Chronicle)
\
INVESTMENT DEPARTMENT
bAYTON,
Ohio — Marion E.
Pease has joined the staff of
Slayton &
under the
Company, Inc., 59 Central
IS NOW ASSOCIATED WITH US AS
JED
MANAGER OF OUR NEW BUSINESS DEPARTMENT
Engel
is
&
First
CO.
L. HAMBURG
(FORMERLY PRESIDENT STANDARD
INVESTING CORPORATION)
C
Wisconsin
Building.
Wis.—Elmer
associated
now
Brew-Jenkins
SALOMON
of
(Special to The Financial Chronicle)
MILWAUKEE,
L.
management
Avenue.
Brew-Jenkins Adds
F.
o m p a n
MORRIS GLASS
Inc.,
y,
National
In the past he
H.
with
MILTON WOLMER
Bank"
with
Lon Grier & Co. and Loewi &
Co.
was
are
now
associated with
us
as
MEMBERS
NEW YORK STOCK EXCHANGE
With
BOSTON,
Parziale is
BROADWAY, NEW
YORK
5, N. Y.
Registered Representatives
Palmer, Pollacchi
(Special to The Financial Chronicle)
AMERICAN STOCK EXCHANGE
(ASSOCIATE)
120
an¬
Warehouse
Let your portfolio decisions be
icily divorced from political parti¬
attack.
S. RALPH MANGANARO
the
it
journal.
❖
incumbent
coronary
1948
the
to
props, and the rest of the gamut
of
politically-strategic subsidies
*
break
investor's
choice must go to the equity share
than
the
fixed-interest
Ex-Eisenhower
An
the
—
rather
the
*
Presidential
to substitute political pref¬
for
hard-boiled
invest¬
—would
*
industrial
This compared with 92 cents in the like
The
cheaper
of
Industry
incomes, after taxes, for goods and services.
which represented a level 3%
end
influ¬
the
event, during the month
the
budget,
with Ike!
ence
founded
low
the
go
other restrictive policies now
directed from the Clay-Humphrey
defla¬
or
will
and
of December stock prices regained
one-half
of
November's
losses,
$3
last
inflation
Subsequent Recovery
(it
a
veterans
of
con¬
fully to exploit the prosperity
platform. Typically—gone will be
the
highminded
indulgence
in
G.
com¬
Administration
After
In any
a
law;
wage
prospective payment of
billion
was
concessions
Edwin
anti-inflation
an
public
was
befuddled
between
likelihood
spending;
minimum
to
appointment
the
averages
"Explaining" the bust, the
mentators cited the
the
sank
present
whole-hog in instituting expan¬
sionary-inflationary measures
tion.
after
The "Explanations"
Democratic
economist
trusted
Congress.
further decline.
With
lows.
statements
market
Nourse to devise
melted
away in 10-15% de¬
During
the
following
short Saturday session, after an
abortive
rally, the market ran
the
rally
a
earnings
bent
by President Truman of the sound
issues, like Steel and Jer¬
clines.
into
new
investor.
small
The following day witnessed a
rally halving Wednesday's loss.
Friday^ Nov. 5, ushered in
second
victorious
the
odd-lot
enormous
the
Typically RCA lost 10% in 62,000
share trading.
Bonds dipped one
to two points.
Commodities were
contrastingly strong.
a
from
soothing
and
reports
politicians,
Street's
Then, after
year.
the
on
housing and credit will
relaxed,, along with an easing
of money rates, far sooner than
was
anticipated.
Affirmatively,
a
politically desperate re-Election-
represented a
the end of the
terprisingly
May
Hence
be
which
announced
A. Wilfred
status
trols
under¬
reactions, sinking
the previ¬
below
7%
market
recorded
March;
ous
the
Index
Auto Production
Business Failures
nation-at-large in the
period ended on Wednesday of last week was maintained at a
high level with output registering a considerable rise above the
this
Wall
Street,
Price
J
Total
level
is
incumbent
the
Victory No
was
and
Trade
Commodity Price Index
Food
the prospects are decisively bullish.
of
Labor
a
Future
the
writer's considered conviction that
"Invest¬
Republicanism.
New
3,
Fair and
The
market).
Repub-
a
Carloadings
Retail
State of Trade
that
....
that
Production
Electric Output
almost
inescapably tempting to him
by decid¬
to cash in a juicy profit, in
ing
cited
were
Small
Steel
The
during
to cut the Gordian knot
winning
years
Market"
profits."
per
it is
result of the
a
Thursday, September 29,1955
.
e
market
three-year
a
take is the unexpected" should be
added: "by the holder of big pa¬
'
Eisenhower's
General
the
by
doubled. To the Wall Street adage,
"The one thing the Street cannot
By A. WILFRED MAY
impairment
Monday's
preceded
was
.
period of market
a
tnis
.
lacchi
&
Mass.
now
—
BELLAIRE,
Tex.
Opens
L.
has opened
offices
Oak J^ane to, engage
securities business.
in
Williams
Pin
Maltz, Greenwald
—
Members-
at
&
Co.
New York Slock ExchanZe
American Stock
1441
Riley
4609
a
E.
Palmer, Pol¬
Co., 84 State Street.
R. L. Williams
RECTOR 2-7458
Vincent
with
BROADWAY
Exchange (Associate)
NEW YORK 18
TEL. CH1CKERING 4-0343
SEPTEMBER 29. 1955
47
Volume 182
Number 5488
.
.
.
The Commercial and Financial Chronicle
(1277)
prospects for continued
The weapons of war have
been put aside and men are work¬
ing and producing again. Goods
are necessary for trade.
That is
the
point from which business
Coppei Mining Prospects in Canada
By EDMOUR A. R. GERMAIN
Mr. Germain calls attention
well
as
bright outlook for copper,
mining in Canada, and points out there
uranium
as
to the
peace.
must start.
big rewards for the patient prospector who applies intel¬
ligence as well as brawn in the search for valuable ores. Cites
and the United Kingdom
tax
more
market
incentive
privileges accorded to prospectors by the Do¬
Government, and notes that the increase in nickel pro¬
minion
duction has meant
Copper mining in
taking on some of
which
the
customed
public
to
Canada
the
has
is
glamor
been
with
associate'
ac-
the
from
for
point
of
view
that
copper
looks any brighter than
uranium although it is from this
point of view that the promoter
uranium
The
of
ore.
reflectsof
the
metal
numerous
opportunities
for capitaliz¬
ing
on
un¬
i
usually favor¬
able
As
in
which
I
E.
ura¬
nium, there
big rewards
v
cents
the
of
"
~
A.
R.
Germain
~
ores.
who
the
patient
intelli-
applies
Thus, the investor
who
finances
this
with the
established producer the
profits
to
activity
be
made.
share
can
Canada
is
rich in many minerals and
copper
is one of them.
Ibe
a
Tax
tax
Incentive
angle,
cents
and
the
the
enterprises
Dominion
first
accorded
Government.
three
years
tion for sale, after an
month
of
exempt
or
by
For
produc-
warming-up period,
uranium
new
initial six-
mining company, whether
or
en-
a
new
copper
what-have-you, is
from
the
payment
of
Federal income taxes. So it is not
the only real move¬
experienced since then
has been upward. This past summer,
it has been 40 cents and
up
pound depending on the time,
place and the circumstances of
received
had
1954
in
than the
had.
production
of copper in
599,851,280
that
country that year. This compares
with about 20% of the total for
previous. Produc¬
four
the
years
in
1953
tion
in
year—1955—copper
amount to 25%
INCO
The
ex¬
production of the metallic
the
This
considering
not
course
Canada.
in
minerals
figures for which are not
1953, iron ore
able. In
is
of
uranium,
avail¬
production
is
It
also
Nickel
International
in
the
INCO's
be
sledded
in
was
and
tons
capacity
pleted
ore
to
expansion
and
private
companies
their
enterprises if it appears an eco¬
will
return
so
that all may benefit from
the
projects embarked upon.
other
going to
and Longvac mines.
if
words,
In
proposition is
a
the government—in
pay,
this case, the CNR
Sherritt Gordon
be
forthcom¬
nomic
ing
made
—
is interested.
zinc, Mines, Ltd. placed its new nickel- The CNR likes to show a profit,
Sometimes, the CNR will
803,523,295 pounds while, in 1954, copper mine and 2,000-ton con¬ too.
For Canada, 30-40-and-45-cent
iron ore produced totaled 7,280,256 centrator at
several
enterprises
to¬
Lynn Lake, Manitoba, group
copper
has meant an unprecedented opportunity for new pro- tons and zinc, 747,718,334 pounds. into full production. Lynn Lake gether in its thinking to justify
such a move.
ducers» particularly the high cost Dollar-wise, however, the value itself to which the company
6,509,818
was
sale.
to
ones,
enter
the
level
is
in
at
At
U.
the
of
S.,
field.
the
the
this
all-time
an
high.
copper
tons
and
output stood second in
of
production. In 1953, value
only to the value
group
nickel
Naturally, this situation has stim- of nickel output was $160,430,098
$150,953,742
$180,to copper's $174,139,274.
compared to copper's
ulated production all around. The
beauty of it all is that this demand and, in 1954, nickel totaled
is
and,
unlike
nium,
not
ernment
a
196,300
essentially economic in nature
very
as
real
general
the
market
dependent
for
Measured in terms of
ura-
upon
sole buyer.
dollar volume of
gov-
world-wide
per
that
prosperity
to
in
of
the
stores,
sewer
320
Gompany Limited
you
would have
have
on
page
financing in Canada. Private enquiries from
the part
Man,
have
'
you
a
organization?
of
problem
...
Key Man
were to
die
your
firm? Would there be
your
of
answer to your
effectively,
anyone to carry on as
a
there be
or
would
a
loss of
lessening of confidence
creditors?
a
Sun Life policy
will be protecting
sum
it will be
your
man
be trained for the job? Would
to
for your
Simply by taking out
invited.
an
money to
tide it
compensated for
creditors will have
any
over
until
loss of
no cause
the life of
on
your
Key
firm ami its future. Your firm will
your
a
replacement is trained;
revenue
it might suffer, and
for alarm.
Members
The Toronto Stock
Exchange
Montreal
Stock
first policy issued 84 years ago, Sun Life is today
of the great life insurance companies of the world,
maintaining branches in key centers with agency repre¬
sentation from coast to coast. Sun Life business insurance
With its
Exchange
one
Winnipeg Stock Exchange
Canadian Stock Exchange
Stock
Vancouver
Exchange
policies also provide protection for sole proprietors, mem¬
bers of partnerships, doctors, lawyers, engineers and other
professional
men.
Affiliate
SUN LIFE ASSURANCE COMPANY OF CANADA
Gairdner $
60 Wall
Company Inc.
P.O.
BOX
me.
Association
Hamilton
Kitchener
35,
Quebec
Calgary
Edmonton
Winnipeg
2106
26,
CALIF.
(X) the type of insurance coverage that interests
send
me
further particulars.
Man
NAME.
PLEASE
New York
Private wire system
FRANCISCO
□ Key Man
Q Partnership
□ Sole Proprietor
f~\ Professional
□ Personal Protection
Vancouver
London
or
Without obligation, please
The Investment
Kingston
BOX
SAN
MICHIGAN
Member:
Montreal
P.O.
STATION
DETROIT
I have checked
Street, New York 5, N. Y.
Dealers'
5102
SOt'THFIKLD
PRINT
ADDRESS.
In Canada,
Date of Birth.
.
plea*« write
Montreal
Head Office,
un¬
bringing
cable,
power
Continued
problem if
a
suddenly. Would there be
on
are
failure of
of the
have
SUN LIFE OF CANADA lias the
because
someone
complete service for corporate
dealers
to
6,500 tons of ore daily but
derwater
key
revenue
a
a
designed
Have you a
$19,776,202.
Bay Street, Toronto, Canada
We provide
completed,
nickel's gain
If so,
%
the
because
and
facilities
water
and
theatre
and
hotel
a
Ltd.,
Gaspe
Mines,
in
treat
modern
boasts
now
subsidiary of Nor-
mill
begun to take real shape.
place
number one position,
world
by
anda
the
over
during the winter of 1952-
1953 has
The
sleds
by
Copper
Gaspe
too,
a
the top of the list,
is,
gaining $23,185,523 to
encouraged
Sherridon
snow
1954,
Mines, Ltd.,
the former town
1954, however, cop¬
1953
stemming out of the recovery of
trade
growth in
of
In
community,
entire
the
shipped
houses and all, of
minerals output
stood at
from
Copper in
is sharing in the
sense
Gairdner
the
of
Hardy
in your
of Canada
the
take steps to encourage
com¬
also
The
move
CNR—as
The
Canadian Government itself—will
2,800
almost
company
last year,
concentrates
heeded to
was
concentrates.
significant advances on its other
Also
nickel
the
The major cop¬
per content of the ore is recovered
as
a
and is
copper concentrate
currently shipped to a Canadian
projects at Fecunis Lake, Bound¬
ary
location of
operation
the
from Lynn Lake.
increased
Falconbridge's
at
The
mine.
in
Gordon
a
treats
mill of 1,000
new
was
change
Sherritt
to
refinery af Fort' Saskatche¬
Alta., 15 miles northeast of
Edmonton,
that* the
company
14,456,254
capacity
A
Railway
railroad
Falconbridge
milling
National
custom smelter for treatment.
record
a
along
Sherri¬
copper
production of
1954
north
production.
copper
de¬
wan,
corresponding
a
The
Lynn Lake
new
output of nickel have
in
to
tend its trackage from Sherridon
to Lynn Lake, too.
It is at its
bridge Nickel Mines, Ltd. to in¬
crease
there.
on
at
when
great extent made pos¬
sible by the willingness
of the
Canadian National Railway to ex¬
Can¬
of
1951
deposits be¬
copper
move
to
The
and of Falcon-
(INCO)
ada, Ltd.
Co.
of
Cooperative
Production at Record
tons per day.
by iron ore and zinc
ceeded only
in
is
copper
to
Canadian
expansion programs of the
copper
Tonnage-wise,
had
place as a consumer, being
led by the U. S., U. K., Russia and
West Germany, in that order.
tons
Copper Third in Tonnage
and
fall
with the population from
don altogether.
fifth
of
minerals production.
metallic
the
company
operation
meant
that
133
houses,
two
churches, three stores and a bank
was
increase
of Canada's total
cision
desia
Russia.
its
exhausted
came
this
that this
will
zinc
place among the largest
producing countries of the
world, being exceeded only by
the U. S., Chile, Northern Rho¬
and
The
down
Sherridon
its
fifth
also
output
installed.
copper
resulted
pounds. It is estimated
been
closed
on
the list, being exceeded
by newsprint, planks and boards,
wheat, woodpulp, nickel and alu¬
minum, in that order. Canada is
506,504,074
was
months of this
six
item
—
metallic minerals produced in
first
year—1955—when Canadian ex¬
ports of all items increased 10.4%
to $2,031,400,000 from the $1,839,900,000 for the like 1954 period,
copper at $74,594,000 for a- gain
of $11,117,000 or
17% over last
year stood as the seventh largest
was
that is," nearly 300,000
short tons—or about 23% of total
pounds
a
price
copper
joys certain, privileges with
mining
its
copper
when government
controls
were
terminated,
copper
held steadily around 30
43-cent
From
give
Mine
Canada
developed
ment it lidO
'.b has
for
gence
as
well
as
brawn
and
enthusiasm in the search for valu-
able
to
United Kingdom
pound in the weak market
a
IllCllb
are
prospector
tends
is the stability of its
This
industry.
stability
is
re¬
flected
in
the
strength
of the
world price for the metal. Two
years ago, when the British fabri¬
cators
thought—and hoped—the
price might drop to as low as 21
!
conditions.
case
new
1
market
t
i.1
__
lustre today
arising out of
the
a
What
bright outlook
the
•
mining enterprise or the
investor in
that enterprise will
want
to
gauge his chances for
realizing a quick profit.
glamor
course
'
S.
of Canadian copper
more
this
i
the
than
copper
U.
the
before,
areas.
-
search
Canadian
try. In 1954, 77,867 tons of copper
were exported from Canada to the
United
Kingdom against 60,814
tons to the U. S. The two years
a
Gives data regarding Canadian mining
big buyer of copper
is getting
a
as
IT. S. is receiving from that coun¬
corresponding increase in copper output.
Says favorable copper market situation has induced many
companies to re-examine old and abandoned mining claims.
for
the
Europe is back in
Western
are
the
In
enhanced
5
25
6
(1278)
The Commercial and Financial Chronicle
struments
A Review of Credit
been
used
results.
The
Monetary Policy
the
Federal
Reserve
various
instruments
economic
in
By ROGER YV. BABSON
the
financial
and
n
By M. S. SZYMCZAK*
Member, Board of Governors, Federal Reserve System
In calling attention to "a bad debt boom" that has been
shap¬
setting, and the experience gained
i*
has enabled it to adapt the use of
these
Federal Reserve Board member gives
needs of the
general review of credit
a
and monetary policy both at home and abroad. Reveals work¬
ings of recent.Federal Reserve instruments relating to mone¬
i
l
t/
,
policy actions undertaken in
recent
past three
*
j-
Let
general
credit
the
discuss
me
question
I
as
of
it.
see
4-u
with
the
you
and
money
As
Federal Reserve
know,
you
is concerned
with
influ-
encing
the
volume
of
credit
and
This
money.
influence
is
t
u
r,
•
develop
absorb
banks
indirectly
terms
they
and
and
invest.
affect
This
and credit and
banks and nonbank investors
market.
tion
are
of
the
banking
t
e
s y sB
m.
y
of
For example, if banks
selling government securities,
reducing their purchases, prices
or
of
these
securities
will
these
circumstances,
since
amount and the.y
willing to sell.
higher yields
needs
strives'
the
Reserve
government
se-
curities thus tend to restrict lend-
all
have
to
stable
the
observed
ef-
fects of changing credit and mone-
tary
policies
commercial
becomes
the
on
positions of
When policy
banks.
restrictive,
Three Ways of Influencing Bank
Reserve Positions
As
op-
banks
erations
in
ernment
securities
short-term
ally
be
more
bank
Banks,
serve
holdings
securities
will
i
of
gener-
the market
reduced, and
United
acceptances.
jn
A
Gov-
bankers'
A second is changes
percentage
ments.
States
and
require-
reserve
third
is
regulation
of
values of long-term securities will
the
be
which the Federal Reserve Banks
lend to member banks' this in-
depreciated.
All
of these de-
discount
mechanism
credit.
tend
of
restrict
to
banks
to
When credit and
policy
becomes
posite
developments
the
expand
monetary
easier,
the
op-
will
take
place.
Although
credit
Federal
and
♦An
Annual
Banks,
by
Mr.
of
of
the
Supervisors
in., Sept. 22,
Chicago,
oper-
Szymczak
Convention
Association
through
has
at
National
of
State
1955.
war
years
the
use
discount
of open market
ment
order
security
were
to
peg
prices
in -reserve
and reserves from
t-,
were
through
sales
discount
mechanism
Because
securities
was
the
largelv
what
Canada for Investors
that
Fortunes have
Canadian
been
ha«f nffon
sinrp
Trtoc t
parUHn*
thp
on
speculate
securities
you
i
f
families,
are
need
competent
take a trial
not
subscription to Babson's service:
"Reports on Canadian Mines"?
As
owe
BABSON
famous
strive
we
best
debts
gage
possible
organiza¬
guidance
engineer
the
this
in
fully qualified
on
our
staff
continually making field trips
which
he
ings
personally
and
mines
are
discussed with
test
can
our
and
trial
regulations
ON
a
costs
only
the
same
apply to
Just clip "this
as
regular subscribers.
advertisement
and
send
cheque
or
it
with
order
money
BABSON'S CANADIAN
I,
the Dec-31
•
.
to
bal"^
,
*
economic condUio°nsPreIn
sometimes two
or
more
in
quirements have been
rrpHitf Yanous lnstru" vide banks with
,C
monetary ac- to absorb such
not pay¬
matter of fact,
a
are
Associa¬
about
10
mil¬
in every five,
heads
in
loans;
close
debt.
that
to
Do
mort¬
the
these
And
while working shorter
debt
people
are
in such good
$125
but
are
in
deeply
agency
that
usu¬
The
difficulty
is that he is increasing his debt
while working fewer hours. He
may be earning- $4,000 per year,
but
due
shorter
to
hours,
prices
and he is spending
$5,000. He buys $300
$5-down bait. He doesn't
gone
on
a
good thing. So, be¬
fore he knows it he
loaded
with
payments.
reserve re-
used to pro-
reserve funds
funds.
This
or
in-
StrUm6nt C3n beSt be USed when
d
of the in-
Continued
on
page 22
money.
more
I do
to work harder and
produce
Securities
trouble
is
that
manager
of
one
active and has
must be
ations
been
largest cities seeks assistant to
Department.
operated
for
This
department
present
our
This
is
do with
your
Government
Debt.
true
regarding the big
Federal Debt, but it has nothing to
must
personal debts. You
these
pay
remember
us
yourself.
up
that
with
the
investment markets.
selling.
letter
will
Excellent
be
treated
many
years.
Applicant
oper¬
Straight salary, with
be
mav
monthly
prosperity which we in¬
herit, there goes a responsibility to
children
our
leave
to
and
community
our
our
country financially,
strong for them. Let us be fair to
those
who
they
living
fall
we
now
short
meet
of
follow
the
know.
no
to
up
installment
the more
ability to
your
better business is.
things.
that
express
you
p^v;
buy,
the
But watch out.
My
69%
latest poll
of
those
re¬
polled
definite confidence in the
of
business.
Only 2%
Now when people have
poor.
fidence
which
so
purchasing
as
of our
power
dollar.
Joins
Dempsey-Tegeler
(Special to The Financial Chronicle)
ST.
LOUIS,
Mo. —Robert
has joined the staff
Hrastich
I
Ddmpsey-Tegeler & Co., 1000 Lo¬
Street, members of the New
York
Midwest
and
Stock
Ex¬
changes.
With Powell & Johnson Co.
(Special to The Financial Chronicle)
PASADENA,
Fitzgerald
is
Calif.
now
—
Hal
25 Park
Place, New York, N. Y.
B.
affiliated with
Powell, Johnson &
Security Building.
Powell, Inc.,
With E. S. Hope
& Co.
(Special to The Financial Chronicle)
SAN DIEGO,
Calif.—William P.
become
associated
with E. S. Hope & Co., San Diego
Higgins
Trust
bers
&
of
has
Savings Building,
mem¬
the
Stock
Los
Angeles
Exchange.
feel
in
the
should
con¬
future, they spend
be
to
the
good
if
have found that when all the
world begins rushing in one direc¬
tion-, it is time to start looking the
viewed
as the
possible start of a
depression. Since the last dip
new
1953-1954,
a
kind of "optimism
unlimited" has set in. There
to
be
a
belief
that
we
seems
never
can
build too many houses or automo¬
years
Address Box T 922, Commercial and Financial
Chronicle,
J.
of
cust
they will match it by work.
biles.
full
not
but
in¬
to hold
that general business prospects are
particulars.
Give
that
of
Let us
this
production
the
us,
standard
obligation,
borrowing
with
our
creased
up
will
enjoy
may
over¬
.
course,
confidential, if requested.
future.
as
is
Let
ma¬
terial
Study Economics
Of
in
experienced, with knowledge of department
and
outside
of Texas'
Securities
few
too
really care what is hap-i
pening now. They say that future
generations will have to liquidate
constantly one skeptical question,
"How long will boom times last?"
Every dip in business has been
Dept. Man
to
enough
up
at the rate of
items
to
more
match your increased borrowings.
tirnec? The'col¬
unemployed.
you
is
shorter
advising; against
purchases; but
not
am
One
hours.
so
will tell you
credit delinquent is not
ally
worked
II, while business has been boom¬
ing, there has been raised almost
to
Building
Canada
qpq
in
two items people purchase on time
Why
car?
other way. Ever since World War
Your
Commission
Toronto
ing
nf
ha?
REPORTS
LIMITED
Harbour
mentq
tinn
011
At times changes
Big bank in
have
you
»,
.
our
...
months'
and
reserves
Changing Reserve Requirements
importance
con¬
fortnightly
mark?
want to miss
on
our
service.
"REPORTS
CANADIAN
MINES"
tefms
Meanwhile, the role of the
discount mechanism has
increased
.
debt
.
ederal
find¬
bulletin
thiee
r
,
According
is
with
engineer and
exoerienced
staff.
511.25.
„
inspects
His
prospects.
sulting
You
to year.
,,
billion
future
tions.
in
boom.
that
are
have
ness
of
provide
to
difficult field. The
mining
affiliate
sort
new
up
or one
car-installment
veals
Tuc
Canadian
the
tion,
year
,.
mining
Why
a
shaping
realize that Americans today
more
than $12.5 billion on
you
have
installment
The
bad
Collectors
their
over
ferent
stocks, but to
successfully in these
adviccf.
of
now>
people
shortages for technical reasons, Periodically I make a Babsonpoll
For example, there are frequently of Business Conditions, I ask
special needs for reserves near people what they think about dif¬
hppn
Reserve Accord
made
.
the market at times of temporary
,
Examining Mines in
.•
useful to supply bank
inoperative.
t
demand
to the
terms of these a^reements, the
deal?rs and brokers agree to rePu.rchase the securities at. a fixed
Prlce> usually within a matter of
a few days. • Repurchase agreern^nts have been found extremely
readily obtainable
of
been
aSreements-
inL
requirements
reserves
the
rom time to time the
sometimes used to offset the
effect of such purchases.
you
Hours
boom
estimates
lion
Ford
new
borrowed
longer
months—a
Reserve ^so purchases U. S. Gov-"
ernment securities from dealers
and brokers under repurchase
govern-
and
in
requ^re L incATse'fo ^eposTts
reserve
POSltiOHS W3S hampei ed by the
policy of supporting the government security market
Securities
were
purchased by the Federal
in
changes
cunJncy and credit- Finally,
in earlv nost
affect bank
the
may
all of these
years
Babson
W.
safety, do
own
American
tion
does
today's; conditions
you
appeal to
ing their bills. As
the
this
paid $800r
you
I
Roger
great many people
a
the
the'
in
recent
As you will recall
creases
601
which
recent
seasonal
changes
In
Reserve
your
also
reserve
are
all
hours and
Shorter
a
a
for
reason
that
it
as
when
$1,000 for
Bad Debt Boom Due to
is
While
ever.
much
as
Remember
too many people too much?
owe
lection
rate.
twice
costly
more
instruments have been used flexibly to influence bank reserve
eludes
be¬
your
life,
and
you've bought
used
oBs.et these de¬
vel°Pmerds- In addition, the Federal Reserve typically purchases
securiBes in the second half of
the calendar year ?nd seRs them
inl the first half in response to
Reserve
monetary policy
address
the
in
positions.
velopments
willingness
54th
fore
pur-
re^ard to these developments. For
example, a gold inflow associated
^Yltk
surplus in our interna^?na^ balance may supplv banks
widl reserves while a gold outflow^ay dePrive them of re¬
serves< Temporary changes in the
Treasury balances at the Reserve
Bar!ks also affect bank reserve
P°siBons- Open market operations
you well know, the Federal
Reserve has three major
ways of
influencing
bank
reserve
positions.
One is open market
will be in debt to the Federal Re-
money
ever
highest
true, it is not necessarily good
in the long run if prices climb
correspondingly.
Only
15
short
years ago your dollar bought you
needs associated with many de- Collection
agencies are having the
velopments other than changes in most business
they have had in
general credit and monetary pol- many months,'with increases in
icy, and such operations in any their business of from
30%
to
period must be interpreted with 100%. This
means, of course, that
ing to other borrowers.
.
contribution
economic growth.
possible
You
than
There
Open market operations
used to meet changing
Lower prices and
on
maximum
the
make
to
of
Federal
the
economy,
the
to
industry, has expanded and we
have the fullest employment ^ever.
Your cash income is
probably also
the
be readily
can
Danger
is
reversed if necessary,
willing to buy and less
Immediate
Our economy, both business and
employment,
^
Other investors will therefore be-
i cy
Szymczdk
re-
erases or sales can be in any
decline;,
come more
monetary polM. s.
are
fJj10"8 ar.e readdy adapted to meet
adapting
'
this
No
L
un¬
have probably
"
collected '*
neces-r
in economic conditions
credit
and
an
good
positions.
Moreover, at items
pur¬
times it is not clear what policy chased on the
will be called for several months instalment
X1?. ke future. Open market opera¬ plan. For your
this
segments
been
one.
®asier
the fact that both
many
cessful
You -had
more
Changes
has
year
or
for somewhat tighter or somewhat
op-
erate
fill
to
last
amounts
supply
small
suited
this
in this
looking the other way."
American,
average
an
Bme *be need is not likely to
a lot of things,
*or a drastic change in bank reincluding sevserve positions, but rather merely eral of the
influence
primarily
by
affecting the
reserve
posi-
can
you're
suc¬
?alllnS for cl?fnSf
Po1"
j?y a,5; usuaiy- &r a d ^a 1. ^At any
the
brought about
in
If
usually
^
results from the highly developed
character of the market for money
in
time to start
by
qUjrement
'
on
invest, but
also
that
met
be reversed if
can
emjnently
which nonbank investors
on
lend
lend
funds
be
Questions why debts should increase
period, and, though seeing no immediate danger,
"when all the world begins rushing in one direction it is
says
as
Open market operations
sary.
i
best
can
shorter
to
prosperous
they
Typically, re¬
reserves
time.
over
and that
u
bank
instrument
an
actions affect the terms
which
-
banking system.
needs
serve
through its influence on bank
positions, these are only the initial
effects. Not only do Federal Reserve
for
needs
months, but record of
xu
ates
in recent months, Mr. Babson ascribes it
up
working hours.
.
flexible credit and monetary
policy has contributed to stable economic growth.
*
ing
the
to
Open
market
operations
are
generally
the
instrument
best
adapted to meeting changes in the
a
indicates that
years
better
.
tary policy, and compares the U. S. actions with policies fol¬
lowed abroad. Says it is too early to
judge the effects of
I
instruments
Thursday, September 29,1955
.
Your Financial Debts
has
carefully the operations of
postwar
.
to¬
gether to bring about the desired
studied
And
have
.
your
you
Perhaps such
a
time is
many
ahead, but for the good of
family and
your
community
should avoid getting into too
much debt while
hours.
working shorter
paragon Oil Company
30 E. 40 ST.,
EVERGREEN
N.Y.C.
8-4100
Volume
182
Number 5468
.
The Commercial and Financial Chronicle
.
.
(1279)
7
*
*
Western subsidiary) two sizeable copper-: ©
Canada and selling same to indus- properties in Newfoundland. Each
trial lusers, Mid-Western is mov- company has two warrants, A and
ing ahead rapidly. You may want B. The A lets you buy common
to look at the bonds at 122 today;
at $2 to Dec. 29, 1955; the B at
g
natural
With Warrants in Canada
By IRA U. COBLEIGII
Enterprise Economist
A
•
.v
.
the
are
wisps of finance.
will
left to run.
They "toil not
neither do they spin." They represent neither a lien on assets nor
offered in March 1955, $25 million
when
rant
5%
divi-
rying
a
f
the
are
most
sprightly,
with each $1,000 unit carwarrant for the purchase
a
40
of
shares
common
through March 2,
the
deben-
general" mortgage
tures,
dend; yet,
withal, they
P a y
in
markets
the
at
1959.
"ex"
$11,
Separate
bonds,
warrants, have been made
and among the
Toronto Exchange since March 15
of this year. The ex warrant bonds
most romantic
of
the
all
markers
sell
de-
u.
finance
liai
'
1ng
with h
°
nct'
the
fas bTen
boJd)
into
into tho nnrnn«J«n
the corporate till,
This is important heransp if nftpn
lonev
new money
often
means,
killing two birds with
Oil
The
sell
higher
slnnt
(iiciiaiixr
here
with
came
Ssue
an
in,
corporation.
v
dixun.
o+
in
The
ine
favor
bond
oona
of
off
to
gives
sizeable
a
the
bentures
at
a
op-
de-
own
favorable price, an
in
anatomy
note
high
wanted
55c
to
a
Oh yes, you
what the com-
copy.
know
does. It has
(40'to
of
that
while
the
of
successful
Th
th-
fiance
is
demption!You'll
to
years
financing
larf?p„t
,
of
at
s
a
fuj
option
repre-
^
velopment
phase, several Canahave proven up
companies
ore
ernment
bodies,
obtained
purchase
thus
gov-
contracts
become
quite
mineral enterprises.
"
and
mature
Among those
sturdy enough to warrant the is-
Canada
in
and
its
on
■
,
o
share
a
each
back
,
buy
can
to
enjoy
produce the
profitable operation
Pronto
Uranium,
debentures
due
under
Each
Dec.
1,
debenture
the
warrant
for
shares of
a
pro-
1960,
carried
at
a
common
may
SAN
FRANCISCO,
Calif.—
William E, Baker has become
nected with
Hannaford &
Brunswick and
.
;
.
")
•
(Special to The Financial Chronicle)
SAN
(Special to The Financial Chronicle)
SACRAMENTO, Calif.
&
ston
—
Theo-
with Wal-
dore W. Mulch is now
FRANCISCO,
Robert
Stock
son
H.
are
Bohna
now
and
Calif.—
Merrell F.
with H. L. Jamie-
Co., Inc., Russ Building.'
Co., 926 J Street.
With McCluney Co.
First Calif. Adds
(Special to The Financial Chronicle)
ST.
(Special to The Financial Chronicle)
SAN
Charles
Calif.
FRANCISCO,
C.
has
Mayhew
LOUIS,
Mo.
—
Thomas
of
Hagan has become associated with
been
McCluney & Co., 418 Olive Street.
Slayt°n & C°" ^
Ltd' Street"
This announcement is not
offer to sell or a solicitation qf an offer to buy these securities.
offering is made only by the Prospectus.
an
The
A
u
common
finance
ment
Detroit Steel
J? 7
w^rranged (1954"55) be-
$18Q and $4 25
Ag ingtal_
gains
"'enI ™aKee Sai"s popularity
popularity
P°PuJous Quebec, should bf
in
First Mortgage
a
Dated October 1,
war¬
benefit; and the
Corporation
in
Cana?a' L^ur?ntldeb °Parat,ng
populous Quebec, should be in
rant
$30,000,000
to
.
class
Sinking Fund 4/8% Bonds, due 1970
Due October 1, 1970
1955
holders, ditto.
Great
Northern
Gas
Utilities is
lively and growing natural
propane company
in
cities
in
number
a
British
The
provided in the Indenture, reimburse the bearer
Pennsylvania personal property taxes not
exceeding 5 mills and Kentucky personal property taxes not exceeding V/2 mills, each
per annum, on each dollar of the taxable value or principal amount of Bonds held, and
income taxes on the interest payable on the Bonds not exceeding 6% per annum in the
case of Massachusetts and Kentucky
and 5% per annum in the case of Maryland
gas
of
towns
and
Columbia
Company will,
or owner
doing busi¬
and
C^y 0i
St®' ¥anfks9nta"°-. Gross earn"
£oi 19,5a„w'n be more tnan
trebl.e the 1952 jfgures, with net
upon
application
as
of the Bonds for North Carolina and
.
and California.
exPandln« oorrespondlng y'
90r,'s, r^uS0^\, ,,e war"
.an-jS ,a ac
,£be /2 ^'. serie®
A ctbentures, offered this
Price 98.69% and accrued interest
r-*-
j
sneculative
turn
of
mind.
warrant
of
{To yield 5% to maturity)
a
The
purchase
called
for
the
purchase
shares
of ?common
(per
bond) at $5 through Dec.
14, 1958 and rising $1 a share per
year until Dec, 14, 1963 when the
35
$1,000
of
60
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.
option, then at $10, expires. This
warrant has ranged between $1.75
and $4 in the 1954-55 period.
It's
a
low
priced share call
tentially important
on
a
HALSEY, STUART &. CO. Inc.
po-
A. C. ALLYN
an
early
On and after Oct. 1, 1055
the warrant now clinging to MidWestern Industrial Gas, Ltd. 5%
ELAIR
6l
SHIELDS &
attraction of this particular piece
of paper is that it (in respect to„
AMERICAN
$1,000 bond) jets you buy
100 shares of capital stock at $2.75
to
WILLIAM
a
premium.
traded
101
are
for
the
with
and
next 12 months: $3.50, the following 12 months: $3.75 for another
bonds
by
in
period ending April 1, 1960.
This company reports gas reserves
running into the hupdfceds of millions of cubic feet; and has expanding long term contracts to
supply gas to Sherritt Gordon
Mines Ltd; and Calgary Power
Ltd. In acquiring and developing
year
IRA
NEW
YORK
WlERLE-SMITH
k
EAXTER, WILLIAMS & CO.
HIRSCH & CO.
HAUPT & CO.
BALL, BURGE &. KRAUS
September 23, 1955
STROUI?Coio9A°T^PANY
J. C. BRADFORD & CO.
HANSEATIC CORPORATION
SHEARSON, HAMMILL & CO.
L. F. ROTHSCHILD &. CO.
VAN ALSTYNE, NOEL &. CO.
COMPANY
BLAIR &. COMPANY
12 months: then at $4 for the last
5%
themselves,
effect secured
by a contract with the Dominion
of Canada.
The warrants, faithfully following the common, have
ranged 1954-55 between $1.50 and
$8. Quote of Sept. 20, $6. This is
an
interesting warrant with con-
they
1956; at $3.25
the
The
around
1,
Today
both
warrants.
are
April
h. W. PRESSPRICH & CO.
SECURITIES CORPORATION
each
well received and
&,
(INCORPORATED)
LADENBURG,THALMANN&CO.
series A secured notes (due April
1, 1970) may be detached. The
DICK
REPUBLIC COMPANY
CENTRAL
CO.
INCORPORATED
The bonds
were
BEAR, STEARNS &. CO.
AND COMPANY
INCORPORATED
company.
Now we'll switch to
J»
—
certificate
warrant
a
,
con¬
Talbot,
519 California Street.
added to the staff of First Cali- Mr. Hagan was formerly with
in association with fornia Company, 300 Montgomery Olsen, Donnerberg & Co., Inc. and
(for each $1,000
bond) at $5 through June 30, 1958.
sell
It
zest"war-
a
-
(Special to The Financial Chronicle)
attention!
your
GREGORY & SONS
since
With Hannaford Talbot
Joins Waist on Co.
at
today's quicksilver price around
$270 a .flask (76 pounds),
' Switching to copper, there's an
interesting Canadian entry, a corPorate
~ Bathurst
is
futurity.
spectus dated Oct. 7, 1954, offered
$6 million of 5% sinking fund
bonds
Company, 96 Wall Street, New
York City,
Two With H. L. Jamieson
stuff in volume, it should be able
£9f a"d a£
d
iltSrn pLSf"i0V£CUritieS are
AlgOm, Pronto and Gunnar.
without
of
these days, particularly as it may
relate to nucleonics. If DeCoursey
the
W8r" May- have attracted those wiih
few
While most uranium companies
still in the promotion or de-
to
Canadian
plenty
prepared
menu.
new
issues.
are
rose
diverse
you've
see,
New York
of
business department. •
Manager
Frederick W. Vogell has become
these, may lure and fasOur Canadian friends
you
&e
as
associated with Stamrowe Trading
cinate you.
as
members of
Exchange,
past
„
ipt^f^V
let
look
as
&
upon
minimum outlays, in such war-
rants
Salomon
Frederick W. Vogell
With Stamrowe Trad'g
sporting blood and can take wide
in stride, then the
opportunities for fat capital gains
on
L
instalment
largest
share;
*
carried
in
has involved the of-
fering of warrant-laden securities.
sentative
of
If
the
market^swings
a
warrants
r
number
a
F
want
probably
Today's piece has touched
warrants.
with
IfOa
hf>POm~
It is expected
the prospectus on this.
see
OdlUmOn
Man?anaro
way—Kilembe
this warrant may be called for re-
rant"
a
its
on
,
associat(?d
Stock
to bear warrants, possibly, for 150
shares at $3. And, amazing to say
5%%
to mL
company
V
on
permit
most
Canadian
reported
much discussed mineral
is
a mercury
70c now.
re
Copper Cobalt Ltd.
have,
8111 ^dndUd ffff
^au,r„eJi
e Acceptance Corp. Ltd.
In 1953j an issue Qf 25 000 shares
j
and
absolute vogue
attractive and
an
They
Another Canadian copper bond
•
Li
.
r
|1-'«
as0s™ ^dway New"
ranged since issuance from 20c to ^
$1.
mine
in Alaska containing apparently
a
quite sizeable ore body. Mer-
pany
have
B)
fi
R
©-I-.*.-.,
10%!
was
t-
.
ness
of warrants,
have attained
par.
at
This ™d°"b"d®a <a
year's
a
fairly popular in the
States, in Canada they
United
have
item
You
been
major
buy
warrant
warrants. (the
■
ership of copper properties in New
re¬
With this minor dissertation
.dian
either
individual
the
or
These
structure and shares 50-50 in own-
the
an
opportunity non-existent
spect to "converts."
ts,,
can
bonds with warrants appended at
(class A)
war-
discount.
company
portunity to buy in its
ranb;
you
at
carrying the priv-
war! rants have
tween
"ex
ex
rants," usually will no longer sell
at a
premium; and in fact it may
recent
Today
sub-
year
common
Another fTctor
prices).
creeps
Some
for
price until Sept. 29, 1956.
same
D Ma It IT AH or A Willi
lli IfldllgdlldlU Willi
stone! °L$1'20 Pre£erred was o££ered at
a
one
You sell the bonds
now, and later,
when the warrants are
exercised,
have
par.
fould^have ^^50
lixed prices for the com¬
but warrants require
(upon
their
exercise)
the delivery of
to
Canadian
neriod
Star
offered
debenture
scription in June of this
at $1° until Nov- 15> 1958-
to
us
,
1954-55
the
was
offered in 1953
mon,
the
of
Dec. 31, 1957,
This plump warattached to each $1,000
ends.
it
ilege of buying
n?I.nrfv1n«!7«,miiSt,pUl.
This
classiest
in
North
warrants
dog.
equity merely by exchange,
move
the
of
6%
1956; or
through
$1.50
Brewis Minerals
19^8
These
the
Gne
gear
.
1
per-
the
Mining Corporation and Mantimes
Mining COTP°ratior.- Each comr
ores,n0lrftible sec"rities North Star Oil Ltd. debentures bany has an identical corporate
or stocks) move into the
fbond.
jooncts
then
Ort
to
are
performers
mar-
hound
vou
<511
to Sept. 30, 1960.
by some because
longer option period.
are
they witl follow same in
ket like an underfed
tus
1956-
1
at
cury
favored
warrants pick
geared to the price of
subject common stock, and
new
7%
•
warrants sell at around 6 and
up
where convertible bonds leave off.
junior
between
been
.
f and' *i2
gains.
the
the
on
three purchase prices: $10 to
carry
heavyaccentoncaP-
j^radttionally,
They
range
Warrants of Gunnar Mines, Ltd.
for p 1 a y i n g
this
fascinat-
Cobieigh
has
14.
and
The
par.
warrants
veloped by the
genius of. man
ira
at
the
on
warrant
share through Dec. 31,
and '125,
most volatile
This
yOU to buy a real bundle of
common—1,000 shares—at $1
the
cf
in
share
a
earningpower,
andtheynever
Brewis
DeCoursey
of
Ltd.
a
may
bearing the corporate
Minerals
„
Mines
they
king sized wariant, look
one
imprint
Uranium
when
and
as
a
the
Ltd.,
which 'ranks among the largest
uranium producers in the world,
Algom
detached interest in the
j
For
at
.
in
quoted, solo, after Oct. 1,»
be
siderable potential, and 2-m years
the
o'
a
warrants
vehicle of finance, this
forward looking, and favorite paper privilege and frequent
appendage to many Canadian senior securities—the warrant.
topical look at this peripheral
Warrants
take
or
reserves
gas
COURTS & CO.
JOHNSTON, LEMON & CO.
WM. E. POLLOCK
&. CO., INC.
AUCHINCLOSS, PARKER &. REDPATH
JULIEN COLLINS & COMPANY
8
(1280)
The Commercial and Financial Chronicle
9
Chemical
333
Dealer-Broker Investment
New York 6, N. Y.
way,
firms mentioned will be pleased
send interested parties the following literature:
understood that tjjlte
it is
to
Houses, Inc.
120
&
Atomic Fund
on
ment Securities
its
&
&
Stout
able is
memorandum
Ilammermill
Mr.
Hamburg was
formerly Pres¬
& Co., 1 Wall
Paper Company—Analysis—Cohu
De¬
ident of Stand¬
Street, New York 5, N. Y.
ington 7, D. C.
Canada—Monthly
commercial
letter
with
up-to-the-minute
Manabi Exploration
es¬
In¬
partment.
Also avail¬
River Propane Gas Co.
White
on
newly
vestment
King, Libaire,
Co., 50 Broadway, New York 4, N. Y.
a
firm
the
Manager of
as
tablished
Gulf Cities Gas Corp.—Memorandum—Eisele &
Co., Inc., 1033 Thirtieth Street, N. W., Wash¬
with
Lembo, 55 Liberty Street, New York 5, N. Y.
portfolio informa¬
of June 30, 1955—Atomic Develop¬
as
Expressway—Analysis—Glickenhaus
Orleans
New
associated
now
Gas—Analysis—Ira Haupt & Co., Ill Broadway, New
York 6, N. Y.
Atomic Reactor Diagram in four colors with
tion
announce
Company, 61 Broadway, New York 6, N. Y.
General
booklet—Harris, Upham & Co.,
Broadway, New York 5, N. Y.
Broadway, New
bers New York
Chemical Corp.—Analysis—E. F. Hutton
Food Machinery and
Greenwald & Co., 1441
York City, mem¬
Stock Exchange,
that Jed L. Hamburg is
Maltz,
Mid South Securities
—
Co., American Trust Building, Nashville 3, Tenn.
Greater
Atonic Energy Review—New
Memorandum
—
29,1955
Joins
Maltz, Greenwald
Haupt & Co., Ill Broad¬
Delta Air Lines—Memorandum—Ira
Thursday, September
.
Jed Hamburg
Kearny Street, San Francisco 8, Calif.
Dobbs
Recommendations & Literature
Newsletter,
Company—Analysis—Walker's
Process
♦.
ard
Company Inc.
—
Comprehensive report
Investing
Corp.
—
'
facts
figures on the Canadian economy—Business De¬
velopment Division, Canadian Bank of Commerce, 25 King
Street, West, Toronto, Ont., Canada.
Canadian
Economy—Monthly business review—Bank of Mon¬
treal, Montreal, Que., Canada.
Canadian Financial
Comment
Bulletin
Gardiner, Annett
Limited, 330 Bay Street, Toronto 1, Ont., Canada.
Canadian Market
Letter
—
—
C-38—Developments in the Canadian
York 5, N. Y.
Market—Bache & Co., 36 Wall Street, New
Canadian
Mines
Three
—
months'
nightly bulletin—$11.25—Babsoh's
ited, Dept. CFC, 601 Harbour Commission Building, Toronto
1, Ont., Canada.
Co.,
Ltd.,
Adelaide
25
Street,
West,
1,
Toronto
Mountain
&
Canada.
Co.
The
Melville
Shoe
Corp.
Thomson &
—
York
Portfolio
Bond
Hanseatic
Corporation,
120
New
Grade
Taxation
—
Analysis
—
and
National
York
4,
market
performance
Quotation
N.
Bureau,
Insurance,
National
13-year
a
46
Front
period
Street,
and
booklet
of
485
companies
grouped—Troster,
Singer
Dain
South
110
Company
Insurance
Life
National
acquire a New York Stock Ex¬
change membership as of Oct. 6th.
will
Officers
R.
Bennett, Charles C. Cook, Wil¬
tary and Assistant Treasurer; and
Laboratories,
Company,
Bell
Central
and
Gossett,
Illinois
Central
Electric
Gas
&
Electric
Company,
Louis R.
Company, Foote Bros. Gear and Ma¬
Interstate
Securities
Company, Iowa Electric
Utilities
Publishing
Company,
Northern
Power
Peninsula
Upper
pany,
Public
James
Service
Power
Public
Indiana
Company,
Hentz
&
Co., 60
Beaver
York 5, N. Y.
Company,
Wagner
(Special to The Financial Chronicle)
Light
Co.,
74
Street, New
is
Brooks
Cement
Co.—New
views—Lerner
&
Co.,
10
Post
—
Monthly review
—
Toronto Stock
members
brochure
on
the mineral resources
*
American Chain
Signal
Oil
Gas
&
623 South
—
Co.—Memorandum—Dean
Witter
&
and
COMING
Co., 115 Broad¬
EVENTS
New York 6, N. Y.
*
*
-
Mines
Tarbell
Limited
H. J. Cooney & Co., 25
Street, New York 4, N. Y. Also available are reports
Consolidated Discovery Yellowknife Mines, Ltd., Radiore
—
Report
Investment
—
Memorandum
—
on
Uranium Mines Limited and Rayrock
Texas Gas Transmission Corp.
Saxton &
—
Sept. 29,
Mines Ltd.
Card memorandum
Coombs and Com¬
Thew
—
of
G. A.
Oct.
Co..
120
of
officers
at
the
Hotel.
12, 1955
(New York City)
Security Traders Association of
New
York
Beefsteak
Annual
Party at the Antlers.
Street, New York 5, N. Y.
Oct.
Tokyo Shibaura Electric—Analysis in current issue of "Weekly
Stock Bulletin"—The Nikko Securities Co., Ltd., 6, 1-chome,
24-27,
1956
(Palm; Springs;
Calif.)
National Security Traders Asso¬
ciation Annual Convention.
Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
&
election
Warwick
Company—Bulletin—Gartley & Associates, Inc.,
68 William
Association
Traders
Philadelphia, aanual meeting
and
Qo., Inc., 70 Pine Street, New York 5, N. Y.
American, Inc.—Analysis—Dre.vfus &
Shovel
(Philadelphia, Pa.)
1955
Investment
Co., 50 Broad¬
way, New York 4, N. Y. Also available is a bulletin on the
Airlines, Schering Corporation and Chicago & North Western.
■
23 East 2nd South Street, Salt Lake
City 1, Utah.
Decker—Memorandum—Walston
Field
—
—
Anticline Uranium Inc.
way,
York
New
Exchanges.
Co.,
Spring Street, Los Angeles 14, Calif.
Stone & Webster—Analysis—J. R. Williston &
Textron
of Africa.
& Cable Co.
Analysis — Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y. Also available is
an analysis of American
Enka Corp.
&
the
of
Midwest Stock
Study — Sutro Bros. &
Co., 120 Broadway, New York 5, N. Y. Also available is a
study of Bowater Paper Corporation, Ltd.
High Yielding Stocks for Income—Bulletin—ZuckerSmith & Co., 61 Broadway, New York 6, N. Y.
pany,
&
Beaver
Copper Industry—Study—Gairdner &
Company Lim¬
ited, 320 Bay Street, Toronto, Ont., Canada. Also available
Black
F.
Prescott
with
now
Co., National City Bank Building,
Square, Boston 9, Mass.
Sheller Manufacturing Corporation
way,
Stock Exchange
World
a
Ohio —John
CLEVELAND,
Company.
Exchange, Bay Street, Toronto, Ont., Canada.
is
the
hold
With Prescott & Co.
Com¬
Electric
In
man,
will
Dain
firm's Exchange membership.
Service
Service
Gas
Corporation, Weco Products and Wisconsin Power &
—
Secretary.
M.
Superior District Power Company,
Co.,
Tail
Otter
Iowa
Secre¬
Hocks,
W.
O'Grady, Treasurer and
Assistant
Light & Power Co., Iowa Southern
Company, Lake
Meredith
Company,
Webster,
Myron
C.
Lau,
Donald
dents;
&
chine Corp., Gross Telecasting Inc., Hamilton Manufacturing
Co.,
J.
Harold H. Wylie, Vice-Presi¬
and
industry
&
R.
—
Railroads—Review—H.
Twelve
Lael
Vice-President;
ecutive
Abbott, Rollin G. Andrev/s, Charles
New
Situation
Monthly review — Chase Manhattan
Bank, Petroleum Department, Pine Street corner of
Nassau,
New York 15, N. Y.
Toronto
Dain,
James M.
be
President; Merrill M. Cohen, Ex¬
Stand¬
Virginia,
Co.,
of
Accident
and
Minn. —J. M.
Incorporated,
Sixth
Street,
will
Company,
&
liam
Gas
Trinity Place, New York 6, N. Y.
Petroleum
Corp.,
"Opportunities for Investors in the Mid¬
west" is also available containing data on 24 companies:
R. C. Allen Business Machines, American Hospital Supply,
American Marietta Company, Anheuser Busch, Incorporated,
Office
List
—
Investing
MINNEAPOLIS,
entitled
Riverside
price
Life
Life,
Fanner Manufacturing
to
Y.
Over-the-Counter-Stocks
designated
over
Inc.,
Co.—Report—General
NYSE Member Firm
•
Baxter
Over-the-Counter Index—Folder showing an
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial
stocks
yield
J. M. DainloBe
the
to
report
Travelers Insurance.
A
Outlook, and analyses of Mitsui Chemical Industry Co.,
Ltd., Sumitomo Chemical Co., Ltd., Tokyo Gas Co., Ltd.,
and Tokyo Electric Power Co., Ltd.
as
Copper
Progress
—
Street, New York 5, N. Y.
Life
ard
Nomura
Averages, both
—
New York 5, N. Y.
Life Insurance, Continental Assurance Co., Jefferson
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
In the same issue "Nomuia's Investors Beacon" are discus¬
sions of Bank Rates, and analysis of Business Results and
used in the National Quotation Bureau
Analysis
—
Organization.
Bond
Co., 122 South La Salle Street, Chicago 3, 111. Also available
an analysis of Life Insurance Stocks with particular refer¬
ence to Aetna Life Insurance Company, Connecticut General
—
Conventions
Co.
Jewish
N. Y.
York 5,
is
Co., Ltd., Ill Broadway, New York 7, N. Y.
S.
Railroad
Hamburg
na¬
tional office of the United
Carl M.
—
the
Appeal and the Greater New York
Committee of the State of Israel
Coal Company—Analytical brochure—A. C. Allyn &
Peabody
Investment Opportunities in Japan—Circular—Yamaichi Secu¬
Japanese-U.
Louis
St.
&
Report
—
Wall Street, New
Co., 30 Pine Street,
Turnpike
Hickory
80 Wall
McKinnon, 11
Common Stocks
Analysis —
Co., 1 Wall Street, New York 5, N. Y.
with
Loewi & Co.,
Oklahoma
Turnpike Authority—De Leuw, Cather & Company, Farm
Bureau Building, Oklahoma City 5, Okla.
Management—Study—New
Broadway, New York 5,
Priced
Low
vs.
Chicago
Northeastern
Lincoln
Francis I. du Pont &
rities
York,
Stanley Heller &
New York.
High
—
Also available is
Street, Milwaukee 2, Wis.
Loeb, Rhoades & Co., 42
Street, New York 5, N. Y.
Economy and
Report
was
associated
report on Kroehler Manufacturing Co.
Old
and
—
New York Capital Fund of Canada, Ltd.
Manufacturers, Inc., General Shoe Corp., International Shoe
Wall
East Mason
225
a
Casualty Company
in¬
he
ness,
Supply Co.—Memorandum—Edward L. Burton
Fuel
en¬
vestment busi¬
Co., 160 South Main Street, Salt Lake City 1, Utah.
New Amsterdam
Ont.,
Clothing Industry—Survey with particular reference to Bond
Stores, Inc., Hart Schaffner & Marx, United Merchants and
Before
tering the
Basket—Analysis—Bateman, Eichler & Co., 453 South
Spring Street, Los Angeles 14, Calif.
Canadian Retail Department Stores—Analysis—Ross, Knowles
&
Co., Inc., 39 South La Salle Street, Chicago 3, 111.
Market
trial
subscription to fort¬
Canadian Reports Lim¬
&
Leason
and
Broad¬
Warner
New York 5, N. Y.
man,
Bonanza Oil &
Mine—Report—L. D. Friedman & Co., Inc., 52
Broadway, New York 4, N. Y.
I
Lambert
Pharmaceutical
available in the
same
bulletin
Nov. 3-6,
Company—Analysis—Selig-
Lubetkin & Co., 30 Pine Street, New York City.
are
data
on
(Hot Springs, Va.)
1957
National Security Traders
Also
ciation Annual
Walworth Co. and
Pacific Mercury Television.
Asso¬
Convention.
Nov. 16-18 (New York, N. Y.)
Association
of
Stock
Exchange
of Gov¬
Firms meeting of Board
For
Banks, Brokers & Dealers
oratrot
Available—
jsecttrtties
ernors.
Nov.
©a., Xtfl.
Member
"Your Over the Counter List"
485
DEPENDABLE MARKETS
Companies
—
19,
1955
(New
York
City)
Security Traders Association of
New York cocktail party and
N.A.S.D.
dinner dance at the Hotel ComBroker and Dealer
Industry designated and
-
price grouped
modore.
Nov.
Material and Consultation
27-Dec. 2,
(Hollywood,
1955
Florida)
on
Investment Bankers Association
Japanese Stocks and Bonds
Troster, Singer & Co.
HA 22400
Members: N.
74
Y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
without
NY
I-
376
61
annual
Dec.
Broadway, New York 6, N. Y.
Tel.:
BOwling
Head
Green
Office
9-0186
Tokyo
Convention
at
Holly¬
wood Beach Hotel.
obligation
DEMPSEY-TEGELER & CO.
2, 1955
(New York City)
Security Traders Association of
New York Annual Meeting at
thp
RnnlfPrc
r^lnh
.
.1
*
(1281)
Volume 182
Number 5468
.
.
.
The Commercial
and Financial Chronicle
this
Changing Times and Their Eiiect
On the Motor Carrier Industry
By NICHOLAS E.
Vice-President of The First
PETERSON*
National Bank of Boston
the most important contribut¬
Ascribing to the motor industry
ing factor in recent economic and social progress,
reviews both social and economic gains in the
Mr. Peterson
last quarter
stimulating forces in our dynamic economy:
(1) growth and mobility of population, and (2) technological
progress.
Says we stand on the threshold of atomic energy*
and mentions automation as another development that will
century.
Lists
as
likely have far-reaching significance in the future.
the value of adaptation to industrial changes* and
1
Stresses
suggests
movement during
by the
migration
the last decade is reflected
in the num¬
living in suburbs
increase of only 14%
a
of
persons
against an
as
in the central cities.
In
order
to
for
provide
the
growing population and a modest
increase in housing space in keep¬
ing with rising living
it
is
estimated
that
standards,
additional
million
dwelling units averaging a
annually would be needed for the
next five or six years.
The flow
of
is rising at a
cars
pace
than
highways,
about
30
forced
to
much faster
the development of
which' are built for
million cars but are
accommodate
over
55
million.
Technological progress has been
7%
and
8%
increased
toward
trend
mechan¬
ization in the economy.
year.
In
increase of over 35%
ber
between
increasing
recognition of the importance
Automation
will
be
extended
of industrial use of atomic energy,
because of economic pressure.
passed an Act which
was
signed by President Eisen¬
hower in August, 1954, authoriz¬
ing the Atomic Energy Commis¬
sion to issue licenses to business,
have
rigid Federal regula¬
tion. In a speech given in Boston
last
Fall, the chairman of the
Atomic Energy Commission Lew¬
is L. Strauss, stated that, based
upon
studies made, the Atomic
Energy Commission is convinced
that,
within
the
next decade,
atomic energy will be competitive
with, electricity derived from the
conventional "fuels.
Scientists
visualize that' in'the course of
from
Congress
subject
to
the
reached
stage
in
We
our
highly complicated industrial sys¬
tem where this forward step in
mechanization must be taken in
productivity
declining.
The necessary productivity can be
provided only by operating ma¬
to
order
prevent
leveling
chines
-
off
or
at faster pace
and
longer
than it is possible for humans
operate* them and
with materials.
Another
reason
supply
'
'
for the
to
them
adoption
of automation is to cut unit costs,
which
ward
so
have
in
the
moved
last
sharply up¬
decades or
two
due to the rise in wages,
taxes;
will provide and other elements, For instance,
scientific
and
engineering
re¬ heat and power for our factories, the average cost of an hour's fac~
steps to improve the position of transport carriers.
search in 1954 amounted to about light our cities, and propel our tory labor, including fringe bene¬
reduced by more than 10% during
We
are
living in a dynamic
$4 billion, or four times as much ships, planes, and trains, as well fits, is more than 165% above that
this period.
world.
Changes are taking place
of 1939, while it is estimated that
as
for the entire decade of the as create many new industries.
Educational opportunities have
the cost of equipment
daily that go unnoticed but when
has ad¬
1920's. Our scientists are blazing
Great Britain may because of
been availed of to an increasing
we review the progress of a comvanced only half as much. Hence,
new
trails with unlimited hori¬
compulsion make even speedier
extent by a larger proportion of zons.
p a r a tively
We are about at the stage
emphasis is being placed on laboradvances in the development of
our
population.
During the past Where the huge postwar expendi¬
short period
atomic
energy
than the United saving devices in preparation for
such as a quar¬
quarter of a century, the number tures will begin to show outstand¬
the rugged competition that lies
States. A coal shortage threatens
of
high
school
graduates,1 has ing results. * - ~
ter of a cen¬
ahead.
Furthermore, the annual
.V t
Great Britain. Mine output is sta¬
doubled and now constitutes 42%
increase in our labor force is at
As a consequence of the rapid
tury, .we are
tionary while consumption of coal
of our adult population, as against
amazed
at
a diminishing rate due largely to
and tremendous scientific devel¬ is
increasing at an annual rate of
12% in 1929.
The enrollment in
what
has
opments during the war period, 3%. The price of coal has shown the abnormally low birthrates in
our institutions of higher learning
the depression period of the 1930's.
transpired.
it is estimated that at present the
a
substantial increase, and this
has increased from 1.1 million to
It
is
well
Whereas the current labor force is
number of persons whose jobs are
has been reflected in higher in¬
2.5 million, while the number of
now and then
around 42% of our population, by
based upon products from the re¬
dustrial costs.
In order for the
college graduates has increased search laboratories, has increased
to
look
1965 it is estimated that it will
up
domestic industry to expand and
2.5-fold in the 25 year period. We from one-third in 1939 to about
from
our
be less than 38%.
On the other
to meet foreign competition, the
have more young people in our
one-half of the total employed in
desks, lift our
British are making plans for the hand, the number of non-produc¬
institutions
of
higher
learning this country. Crawford H. Greenetive persons will have increased
sights above
use of atomic energy.
The United
than has all of the rest of the
and
beyond
wait, President of E. I. du Pont Kingdom Atomic Energy Author¬ from 44% of the population to
world combined.
own
industry,
nearly 50% during this period.
de Nemours & Company, has re¬
ity has announced sites of two
and
behold
cently predicted that, 25 years major commercial stations — with In other words, there will be a
Redistribution of Income
the
world
NichoIas E* Peterson
from now,
growing burden on the workers.
half of the working
Fundamental
changes
in our force will be making or selling capacities of 400,000 kw. each—
about us so that we can better
Automation can not only relieve
scheduled for completion before
understand
the
forces
at work economy have been accompanied products unknown to us today.
1960.
According
to
one
study this strain but also provide more
that are having such a profound by a revolutionary redistribution
We stand
at the threshold of
made, it was estimated that the goods and services for all peo¬
of income among various groups.
influence.
j
atomic power with its limitless
By means of this system,
cost
per
kilowatt from atomic ple.
The proportion of total disposable
Despite a prolonged depression
possibilities. While most of the stations would, on the basis of machines can operate on a 168and a world war with subsequent income received by those in the
efforts are now for defense pur¬
current coal prices, be 20% less hour week basis doing the mo¬
critical international tensions, in top 5% group has been cut in half poses, there is a growing realiza¬
than from a coal-fired plant.
|; notonous and repetitive work now
1929.
During this period, tion of the essential need for
the last quarter of a century there since
being
done
by
human
labor,
has
been
substantial
economic dividend payments to stockhold¬ atomic energy to provide power
Automation
thereby greatly increasing pro¬
and social progress, practically all ers declined from 6.6% to 3.3% of for our dynamic and expanding
ductivity.
Another development that will
total
national
income.
Further economy and to reduce the deple¬
of which came in the last decade
The Necessity of Adaptation
and a half.
The motor industry evidence of changes in the share tion of our natural resources. It likely have far-reaching signifi¬
The forces
set in motion by
has been a most important con¬ of income is indicated by the pay has been pointed out that while
cance in the future is automation.
modern technology
are irresisttributing factor in this substantial of factory and salaried employees. our population is increasing at
While
in
1929,
white - collared the annual rate of 2%, the de¬ This is a new word applied to the
development.
Continued on page 41
of
the
long-term
workers on the average received mands of our utility system are continuation
Marked gains have been made
about 75% more income than the
in our standards of living since
average for manual workers, to¬
1929, as indicated by the 60% in¬
day they receive less pay on a
crease
in per capita real income
weekly basis than wage earners.
during this period. Today nearly
Those in the income groups under
60% of the families own their own
$5,000 a year receive about twohomes, as against 48% m 1929.
thirds of total income after taxes
About 98% of the homes are serv¬
and account for about the same
iced by electricity, as compared
proportion of total consumer ex¬
with 75% in the earlier period.
penditures. This striking redistri¬
Mechanical refrigeration is now
bution of income in the past 25
in 90% of the households, while
years is largely accounted for by
25 years ago only 4%
had this the rise in wage payments rela¬
modern facility.
The number of
tive to other sources of income
telephones per hundred people is
and to the progressive income tax.
now
over 30, or double the pro¬
3V8% Equipment
It should
be pointed out that
portion of 1929. There are now if the redistribution of income
(Philadelphia Plan)
over 125 million radio sets in the
should continue at the same pace
United States, 12 times as many
as
it has since 1929, the country
To mature $626,000 annually on each September 1, 1956 to 1970, inclusive
as 25 years ago, and more than in
would in the course of a auarter
all of the rest of the world com¬
of a century be on. an equalitarian
To be guaranteed unconditionally as to payment oj principal and dividends
bined.
The number of television
basis, with all persons receiving
by Southern Pacific Company
sets in this country is estimated
the same amount of income.
at 35 million, while there were
none a quarter of a century ago.
Stimulating Forces
MATURITIES AND YIELDS
Since 1929, the number of pas¬
(Accrued interest to be added)
Propelling forces are at work in
senger cars per one hundred per¬
our dynamic economy.
One of the
3.20%
1966
3.125%
1961
sons in this country has increased
2.90%
1956
strongest forces compelling the
3.225
1967
3.125
from 19 to 28.
Three-fourths of economy to provide for pressing
1962
2.95
1957
the world's passenger cars are in
3.25
1968
3.125
needs is the vigorous population
1963
3.00
1958
the United States.
The amount
3.25
1969
growth. In the last quarter of a
3.15
1964
3.05
1959
spent for recreation last year is century, the number of persons in
3.25
1970
3.175
1965
estimated at around $15 billion, a this country has
3.10
I960
increased by
threefold increase over 1929.
about 42 million, or the equivalent
unparalleled.
Expenditures 1 for time, atomic
energy
,
*
$9,390,000
Southern Pacific Company
Equipment Trust, Series RR
Trust Certificates
I
by endorsement
Not only are
the American peo¬
ple well equipped with facilities
that make for more pleasant and
comfortable living, but also sub¬
of
the
population
current
of
Issuance and
France.
In addition to
growth, mobility
of
population is an important
have been invested stimulating force in our economy.
protective coverage. The In the last decade, mobility of our
amount of ordinary and group life
people has been the greatest in
insurance held by the American
history./ About one out of every
people is placed at over $285 bil¬ five persons changes residence
lion, or 3.4 times as much as a every year, resettles in a different
quarter of a century ago.
home or in another part of the
country from where he formerly
Social Gains
resided,
according to United
Nor has the progress during this
States
Census
figures. Mobility
period been confined to providing of
the
population
contributes
sale of these Certificates are
subject to authorization by the Interstate
Offering Circular may be obtained in any State in
such of the undersigned and other dealers as may
The
Commerce Commission.
which this announcement is circulatedfrom only
lawfully offer these securities in such State.
stantial sums
in
material
benefits to the
Work-week
\n
by Mr.
England Motor
address
New
ed.
people.
schedules have been
Peterson before
Carrier Account¬
Hotel Kenmore,
1955.
Boston, Sept.
"—'J-
'
much to the dynamics of the econ¬
creates markets for new
homes, builds new communities,
and expands the need for trans¬
HALSEY, STUART &
R. W.
FREEMAN
WM. E.
PRESSPRICH &. CO.
&. COMPANY
POLLOCK & CO., INC.
F.S. YANTIS&CO.
INCORPORATED
omy,
portation services.
The extent of
September 23,1955.
McM ASTER
CO. INC,
BAXTER, WILLIAMS &. CO.
IRA HAUPT & CO.
THE
ILLINOIS
FIRST OF MICHIGAN
HUTCHINSON & CO.
COMPANY
INCORPORATED
CORPORATION
M ULLANEY, WELLS &. COMPANY
10
The Commercial and. Financial Chronicle
(1282)
.
.
Thursday, September 29, 1955
i
what
at
New Patterns of World
rate?
In
and
you
have to
may
which cannot be
Trade and Finance
Traditionally, the American
banker and
industrialist is not as
his Euro¬
This is quit$
loreign-trade minded
counterpart.
pean
as
understand¬
in
view
the
fact
about
be sold
of
must
on
for¬
eign
markets
against 30 to
40% for most
West
Euro¬
-
countries.
this
is
changing. The
dependence of
the
Reimann
United
States
eign
trade
is
nance
West
growing.
Coast
American
tries.
you
Here on
have
may
centers
Their
for¬
on
international
and
of
future
while
a
new
fi¬
the
the
indus¬
will
largely depend on their ability to
widen their sales on foreign mar¬
position
pate in foreign enterprises. They
must penetrate the wall of soft
countries which
tively cheap labor and which are
eager to use the most advanced
techniques.
The time when foreign countries
were so starved of industrial goods
they
what they
willing to buy
could get and pay in
dollars for them, or for Uncle Sam
to provide the dollars, will hot rewere
The rule to sell only against
cash and dollars to foreign coun¬
tarn.
tries, where foreign exchange and
credit risks can be calculated only
by the expert, cannot be applied
at
time of buyers' markets.
There was a time when interna¬
a
tional trade relied chiefly on pay¬
ments in Sterling and the City of
London
functioned
national
center
financing.
financial
of
Such
center
an
no
as
economic
the
international
inter¬
inter¬
an
world—will
be
not
co¬
balance
of
difficulties
to
other
temporary solutions. We have to
live with them in our time, and
many business men may discover
that they can expand and prosper
with them.
At
rates.
vertibility
the
in
past relied
dollar aid and
present,
we
distin¬
may
cur¬
New
a
gations.
Payments
situations
new
(3)
Tne
EPU
(in
area
latin-American
and "some
exchange.
It is
countries
The Russian-Chinese
(5)
munist
Com¬
the
in
soon
the Communist
definite
fixed
coordinated
will
area
boundaries
with
foreign
stable
pay¬
munist
countries
functioning and
such
not
are
are
one-sided
a
that they
curtail economic
exchange even
among the members of the area.
As a result, behind-the-scene ex¬
change opportunities emerge for
way
countries outside the bloc at vari¬
rates of
ous
The
Sterling bloc area
closely-knit bloc.
members
a
are
with
outside
supersede the City of London and
duce
the
is
no
Some
establishing relations
countries
which
re¬
There is
out
can
be
can
are mov¬
dom
of
the world economy as it developed
not
during
to
lole of
the
19th
century,
with
Europe as the industrial
don
the
as
world's
City of Lon¬
financial
metropolis, is a thing of the past.
A geographical shift of these cen¬
is
ters
feasible.
not
Instead, we
at the beginning of a new
era:
a
greater diversification of
world trade and production, based
are now
fuller
on
industrialization
parts of the world, and
industrialization
of
will
which
patterns
a
features
defy
old traditional
world trade. This is
not end
The socalled
all
type
a new
with
long and painful
very
It will
of
of
in
process.
generation.
our
underdeveloped
In this
on
Economic Nationalism
of
era
expect
transition,
economic
we can¬
nationalism
disappear merely
because the
economist points out
advantages of free exchange
of goods and an international divi¬
period
we
may
several
For the
same
Pound.
financial
world
centers
foreign trader.
What
Washington is doing by insuring
the
American
the way,
advanced
on
coun_
their
techniques
cannot
has been copied more or
less by Russia.
The old interna¬
tional
division
of
labor
which
made nineteenth century interna¬
*An
the
address
World
by
Trade
Francisco, San
Mr.
Reimann
Association
Francisco,
before
in
Cal., Sept.
1955.
San
12,
individual
more
the
a
deterioration
hew
underlying
conditions
balance
of
of
for
payments
time when
than
government agency.
converted
into
dollars
and
12
would
a
into
seep
pressure on
of worthy accomplishment,
much to his fellow citizens
as
an
able
an
educator,
scientist.
a
your
and his work
mind of the conception of
a
the
avowed
represent,
open
spokesmen
and
You have got to know
the interests they
pleaders of
and above board.
They represent conflicting interests, the diverse interests of
which a country so big and powerful as ours is
composed. They
constitute
Congress in themselves, frequently cooperating with
their interests jibe, just as do the members of
Congress; frequently pressing legislation which the journalistic
punaits say is not in the "national" interest but it seems
always to
a
another when
be difficult for the
sectional
and
pundits to understand that it is the varied local
and
"selfish"
interests
that
make
up
the
so-called
national interest.
think the tribute to
I
fitting testimonial
to
mah
a
"lobbyist," and it should
I know of
Walter Chamblin
who
serve to
served
his funeral
at
his
country
was
a
as
a
well
clarify the meaning of that term.
Reverend for whom I had
no
".
.
.
have
now
where
we
reached
believe
a
that
warning must be given con¬
cerning the future of Sterling
a
rates.
Another devaluation of
Sterling
liberate
may
and
come
as
calculated
a
de¬
move.
It will be designed to
improve
Britain's balance of trade and
of payments at the very time
when convertibility is
more
respect.
It is true that Britain has
Continued
With Lloyd D. Fernald
L.
Evans
has
become
with Bache & Co.,
Avenue.
with
E.
Mr.
affiliated
1000 Baltimore
Evans
was
&
Hutton
F.
(Special to The Financial
Chronicle)
CITY, Mo. —William
formerly
SPRINGFIELD,
L.
Davenport
dated
with
Mass. —Haro
has
Lloyd
become
D.
ass
Fernald
Co., Inc., 1387 Main Street,
Company.
bers
With A. G. Edwards Sons
of
the
Boston
mer
Stock
E
change.
(Special to The Financial Chronicle)
LOUIS,
ST.
has
Cohen
Mo.—Charlotte
Gibbs & Co. Add
S.
(Special to
joined the staff of A.
Edwards
Eighth
&
Street,
Sons,
409
members
North
the
of
New York and Midwest Stock Ex¬
Joins Mann & Gou!d
4
Babb
has
Mass.
become
—
Herbert
affiliated
—
to
the
staff
of
Gibbs
Street.
&
Kat
add
Co.,
5
I
Now With Hanrahan
(Special to The Financial
Chronicle)
(Special to The Financial Chronicle)
SALEM,
Chronicle)
Mass.
erine W. Spillane has been
Main
changes.
The Financial
WORCESTER,
N;
with
WORCESTER, Mass.—Joseph
Carew has become connected wi
on
page
32
Gould, 70 Washington St.,
Hanrahan & Co., 332 Main
Stre
members of the Boston Stock Ex¬
being
decided.
.
KANSAS
G.
We
point
.
Joins Bache Staff
(Special to The Financial Chronicle)
months
follows:
as
-
a
You will still have to
find solu¬
tions for the problem: How to
get
dollars
from
customers in soft
currency
countries—how
to
get
funds
uation within the next
able to meet
requirements
or
man
a
as
dining, wining and seducing them.
of for¬
foreign exchange markets in
some months ago, at a
York, Zurich, Amsterdamthe outlook still was
bright for
Rotterdam, Hong Kong, with the
according to generally
old City of London having a back¬ Sterling,
seat driver's role.
Then, in June, I
In New York, accepted views.
all private banks are now under issued a "blunt" warning concern¬
ing new dangers for the British
pressure to extend the scope of
their activities on behalf of the Pound including a possible deval-
act faster and is
new
insist
of
aware
New
American
propaganda
moment
very
role a new danger
starting for the inter¬
position of the British
I, personally, became
Britain's
and
this
as
is
national
reason,
observe the emergence of
the
war¬
in life,
lawyer
a
which
its old
resume
sion of labor.
At
occasionally
when the City of London seems to
theoretical
copy the old type of in¬
dustrialization which developed in
the Western world and which, by
share in
now
time and postwar controls
the
foreign
trader
against foreign exchange or polit¬
ical risks covers only a small part
of foreign trade activities.
Besides,
private
enterprise, also in
the
sphere of banking and finance can
which
tries
having eliminated most
eign trade.
and
them
Ster¬
make
after
the
XVI,"
Leftist traducers
propagandize that
influence because it is "to the right of
no
gress,
ling convertible and restore free¬
center of the bloc.
as
a
organization of
doctor,
one
Inroads
London
representative of this element in'
forceful representative.
Association of Manufacturers
was
you have
Washington lobby¬
young reporter in his ignorance, and the Leftist
reporters deliberately, seek to give you. • You have got to
forget
about the pictured type who slink around in the
corridors of the
Capitol, buttonholing honest but unsophisticated members of Con¬
•
able to
And he
real purpose
ist
thing they cannot
convertibility with¬
stopped inflationary
be
unabashed
When you think of Walter Chamblin
position of British Ster¬
would
the
was
got to disabuse
Only a short time ago, it was a
generally accepted view that Brit¬
ain
so
citizen—contributing
balancing of
dollar would replace the
Sterling is unrealistic, nor
will the Pound Sterling ever re¬
gain its former role. The unity of
of
a
and without adjusting
exchange realistically. I
refer here again to the inter¬
national
press.
policy making, in Walter's own attitude, was shown at his
At that, there was a
recognition of the much abused
"lobbyist" as a substantial citizen, recognition of the much abused
"representative of the special interests," as a man who had served
of
may
the
of
How wrong this was, the influence of the NAM in
the Govern¬
processes
rates
..
from the Pen¬
men
members
the NAM councils to the extent that there
would be
Walter to be a little more "liberal" or moderate.
one
having
were
Bargeron
,
the representative of
was
National
an
Louis
and
foreign exchange for the
City of London. Apparently, only
one
final step had to be taken
role
the
it is
do: Return to
ling.
exchange.
would
Western
of
always
often used in
There
Congress,
-
midst, against the CIO, the ADA, and all of the other Leftist'
elements.
more
States
international
payments
ments rules. However, the "clear¬
achieved. Otherwise, we
ing agreements" among the Com¬
ing in a vicious circle.
He
organization
an
Walter
our
remedy
new
of
r
a very "selfish" organiza¬
selfish, indeed, as to be always expressing!
the viewpoint before
Congress, and trying to make it prevail, of
the businessman in this
country, that scoundrel.
;
tion,
be kept
a
members
Carlisle
i
funeral.
rate
if
and
men
was
under him.
a
new
was
Five
parlor.
ment's
measures are a
only if the
There
turers, who had been accidentally killed in a hotel elevator acci¬
Walter was a lobbyist and he had a staff of
young lobbyists
rates.
But such
Only
have
funeral
that.
dent.
where official parity rates are un¬
realistic
to
adjust their official
currency
area.
United
the
influential
monetary
where
at
The turn-
man.
attested to
there from the White House.
to advise
easy
values have been inflated far
(4) Bilateral Clearing countries
than
(in part combined with areas 2
and 3).
overflow
adjustment of unrealistic rates
an
of
those
countries).
widely respected
the funeral of Walter
Chamblin, Jr., Executive Director
of the Washington office of the National Association
of Manufac¬
This also applies to the need for
part
combined^with the Sterling bloc
area
most
It
culties to them.
area.
a
were
markets, or only at the cost of a
(1J The hard currency or dollar painful transformation which may
create grave inner political diffi¬
area.
^The Sterling bloc
the funeral, the other day, of
Washington's most influential lobbyists
tagon,
world
on
are
the other side.
of
an
Tney cannot adjust them¬
selves to
ycu
attended
one
i.e.
the
Very
what
cn
I
ending of this era, a
balancing
of
international
new
invariably blame it
cn
are
on
Balancing of
International
With
that
influence employing devious ends to arrive at
his accomplishment. Ycu are a lobbyist if
you
areas:—
(2)
will
cut at the funeral
Needed,
realize
you
to depict, and the
young newspapermen follow
him, the opposing lobbyist as some sinister
on
situations,
temporary
the Korea boom.
issue
an
on
and
special
older
the "lobbyists," meaning, of course, the
lobby¬
ists on the other side. The Congressman seeks
how far the progress towards con¬
payments is necessary.
guish between the following
rency
longer exists.
world center and the
Not
fight
of
governmental
become
ycu
or another, to write a
story about lobby¬
their salaries, their iniquitous inf usnce.
only that, but a Congressman losing a
ists,
In fact, there
is a serious danger that much of
the progress we have made in re¬
cent years will be erased because
During a long intermediary pe¬ we may find out that most coun¬
riod, I visualize the formation of tries are not prepared for a re¬
several currency blocs. They will turn to some kind of
peace-time
not have definite frontiers, with
normalcy in world trade and in¬
fluctuating rates and various de¬ ternational finance. They cannot
grees of convertibility within the earn enough foreign exchange in
group area, and a multiplicity of order to finance vital imports and
conversion possibilities at various meet other
foreign financial obli¬
longer
that the
time
real¬
long time.
a
When
writing fervently about as news has really been happening since
the beginning of time.
Anyway, every young
reporter in Washington is supposed, at one
payments
foreign trade
international
The vision that New York
youth.
new
new monetary and
foreign ex¬
change difficulties in foreign
countries, including the Sterling
for block. We
may only later realize
are
able to produce by means of rela¬
that
of
on
or
an
Therefore
kets and in many cases to partici¬
currencies in
basis
new
international
of
convert¬
disin¬
has
tion
America's pro¬
Guenter
Western
ized for
operation has not yet been found.
we are moving from one
temporary and emergency solu¬
duction
But
tegrated
stable
By CARLISLE BARGERON
The way to be a good newspaperman, I have
lorg sirce learned,
is always to be shocked or amazed.
That, of course, pomes with
national scale—at least within the
London
of
center
full
to
freedom of transfers
8%
that
pean
City
world
the vista
But
war.
return
ibility of soft currencies
only
able
of
the
and
the
early
an
tional finance relatively harmon¬
effective
of
end
a
ious
Washington
Ahead of the News
convertibility at fixed rates. I
that much progress has been
made in these respects since the
balancing of international
lowering of sterling ex¬
change rates as used in international trade, and notes that the
overriding trend in international trade and finance is away
from the orthodox forms of payments of prewar days and
adoption of new patterns in effecting international payments.
Lists types of unusual payments.
■
From
agree
postwar era is ending, ?nd a new
Looks for
risks
or
the various aspects of cur¬
and international currency problems. Says
payments is necessary.
take
easily calculated.
The problem would be easy if you
could
rely on promises of an
tional
Mr. Reimann, in this paper, covers
world trade
countries
early return to complete interna¬
freedom
of
foreign ex¬
change and freedom of transfers
By GUENTER REIMANN*
Editor, International Reports, Inc., New York City
rent
most
foreign exchange controls persist
members of the Boston Stock
E
Mann &
change.
He was
previously with
Edward E. Mathews Co.
change. Mr. Carew
with
F.
S.
was
previous
Moseley & Co.
Number 5468
182
Volume
.
.
The Commercial and Financial Chronicle
.
(1283)
'f
or
50% of all domestic production.
ings.
If
The Economic Outlook
the
booked
to
Witter &
In his induction address
Company
We
Comments
mentioned
increase
the
beneficiaries
money
The
in
The
the
are
of
higher
banks
Coppers
\
Whether
V
you
want
to buy
stocks at this level
copper
the
'you
m
k
d
o
too
I
t.
s
e
of
n o w
no
industry
ethics
where
are
high
as
in
the
as
finan-
cialcommu-
What
nity.
business
broad
can
boast of doing
virtually
tions
E. Crane
practically
the
on
we
with
phone
ure
*
the
of
two
men
the
on
floor
of
the
Scott and John
Mahon, who in the
day do literally bil-
never
contract
a
and
it
n
-When
vvnen
-
we
comes
pointed
be
r
.
/f °..
wTithhf
banking frateraity and
hour, the entire lot
'half
is
a
dis-
: posed of and the books closed,
that, to my mind is automation af
its best. I repeat, there is no busi; ness in the country or in the'
•
.world
where
such
f
tremendous
a
volume is done with
-
little dif-
so
iciTltv~ and"on such"a
hi eh ethical
nlnnP
__
;
*
.
,
that
is
we
to the fundamental job of seeking
is
There
values
and
selling.
to
tendency
a
security values.
to
ing
sometimes
nf
n„rphaeo
purchase of
-*
'
'
the
}*£?£?!
industries
Hp-
whether
11U1U
clients by not doing a proper
job
and hurts himself by losing com-
No
missions.
•
buys
the
of
one
stock
ever
you
market
the
or
•
Dow Jones averages; you buy in-
dividual
which
stocks
you
per-
sonally believe represent value.
Let's stick to that function.
T
Credit
The
•
We
,
.
are
fiw
•
all fully conscious of the
that is, money is
getting harder to borrow and is
costing more
Virtually every-
credit
-
am
.
•
to
the
the
It is
as¬
hp
far
is that
They
at
random,
can
squeeze;
new
carg
as
we
of
and
twice
the
of this fact.
conscious
see
present
.
CQsting
^
|esg
car.
decade.
years
^a^
missiles
guided
well be
You
must
wild
Security, pensions, etc. are
providing at least minimum com¬
factors
some
much
other
as
Let
dustry
These
com-
which
medium
return.
a
as
unique
important
vitally
of the most
one
they
investments,
may
in¬
creased number of babies and old
in
steps
a
can
step
their
affect
take,
which
way
of
life.
televi-
month to
a
•
'
.'
•
/
,
This advertisement is neither
plan
to
an
#
.'
< •
-
offer to sell
solicitation of offers to buy
nor a
NEW
'
any
of these securities.
I
The offering is made only by the Prospectus.
ISSUE!
September 29, 1955
700,000 Shares
Kaiser Aluminum & Chemical
ration
pur-
than
half
^
H%Cumulative Preferred Stock
4
More important
(?50 Par Value)
Obviously, this in¬
have
could
a
tremendous
bomber.
Price $50 per
share
plus accrued dividends from date of delivery
decade.
Apparently, the rail
equipment industry is going to do
may
guided missiles cost
a
a
increase in earnings if they could
better.
'
keep in mind
us
the
of
of
offer
Gentlemen
and
clients,
your
their
of
which
chance
no
Ladies
alert to
pitfalls
the
privilege in being able to advise
buy
Drug Industry
above
constantly
avoid
your
securities.
Customers Brokers have
goods.
The
or
You
economy,
consumer
be
that
see
sound
speculations
little
By and large they will re¬
quire special drugs, foods, equip¬
ment, eyeglasses, etc. Instead of
their share of
1;
most serious re¬
a
to
them
cial
and
virtual
the
tax cut.
a
get into
help
So¬
being a drain on the
they will have funds
have
we
still have
clients
of the
compared with 20 years ago.
Year,
sponsibility
is relatively independent
operating costs will be
real volume item in the
a
ahead.
approaches, we
earnings
record
see
With all these favorable factors
you
our
This segment
better
a
world.
prosperous
going to
series
creative
by a
should make for
certainty of
coin,
® ®Per™^jofw wm oe
£
less than half.
also ideally set to pro-
are
inventions
more
New
I
as
people in the
65 age group will double in
economy
energy,
constant
a
many companies, higher
dividends, the probability of many
stock splits.
As we go into the
were.
of
sup¬
from
children
are
side
'r^e aircraft industry appears business. even on
Passenger
assurcd of high sales and earnRailway Equipment
ings for years ahead. This group
The President of the Pennsylou d J~e a far more attractive
____
_
„
_
_
Peace than war group. One way vania Railroad only a few days
assure real peace is to have ag0 announced that the railroads
?n,a^ force second to none and, would have to spend $20 billion
believe, the Administ ation is on equipment etc. in the next
panies
atomic
as
and
As the year end
are
natural
had
to
light weight passenger
conventional
lets
justify
the railroads
chase
market
know where the market
' fZ
we
new
people
a
the
goods
on
nonular
mnrp
estimated to have lost
are
Now
whprp
items
automation
million
our
we
they
other
number
over
this
than
that
destructive
On
of
called
be
dream.
Such
$150 mil¬
four
want
more
sure
.
AircrBrft Industry
duce
Squeeze
Hi.,,
„r
to have
y°"r electricbill. Color television
prices for their securities.
is
going down or holds on to a poor
security with the thought that the
market is going up. He hurts his
xxv,
.
the
market
should
adds roughly 50 cents
in-
an
thp
know
d?
.
sound security be
a
thinks
he
cause
a
of
of
volume
would
ply when and if economic stabil¬
ity becomes more a reality than
forts,
population trend alone
S.
•
overextended.
sales-
off
sppiiHIv
«nunri
»
A
holds
totaled
Think of the
are enormous.
staggering
U.
a
tendency
>
in the wU add probably three tunes that
stocks,,
•
those commonly used in making ..Keep mm nd too that it will
"P «?e averages. . Consider these cost the uhl ties virtually nothing
additional factors. We have a to-no expensive additional power
provide this installations, etc.
stronger economy today.
We have a total of 65 million peoRailroads
P'e employed, an all-time peak.
We have total time and demand ,
The railroads are not generally
deposits of $192,190,000,000. We- considered a very dynamic group.
Percentage moves been
h»«h grade investment
master
mind the market instead of stick-
man
alone
goods and services.
exchange firms alone of over $900. over $600 million last year on
mjuion
it js hard to justify the. Passenger business, pretty close to
statement
that
credit has
been the
total net earnings of 1954.
salesmen too often do not adhere
: investment
«ion
J
have free credit balances in stock*
.
thought
My second
-
world
year
is having a tre¬
impact on the demand
baby foods and many other
for
Utilities
An interesting possibility
within the next year color
greatest
mves'tmen
the
years ago means more
increase
The
babies
?lon sn°uta be tar more popular.
present black and white set
convinced that X"U1 piw>*ih oiac-K ana wniie set
.i€a.cP a lew lessons to industry
of a comoanv like General securities. We are
-ir*
a company Me oenerai
markpt
i<?
nrimarilv
bonds" througlf
;
$87,000,000,000 value of the listed
j
>
^nvinced that
'Think
:
that
out
loans at that time were *
J°'Uxl!'USJ!J'U^V^0r P
indnstrv
to
might
brokers
think,
I
can,
lessons
more conducive to doing business
work; than at any time since World War
industry II;
The needs of 9/10's of the
our
mind that do-it-yourself
sales
*»»
today appear
Week
mendous
^?^:iaonc?S' wasJ}ers» driers, etc.
Thls auSurs wel1 for thls SrouP-
getting into another 1929,
we are
automation
automation,
to
10
comes
few
a
signing
no
it
the: Street
in
teach
with
"
nfnrdprs
•
business
of
;•
y to spend
Public
The
to
came
Conditions
shorter
and
bulk of jt:and the department
Stores yvillbeamong the obvious
beneficiaries.
feel, is borne out by the figfor brokers' loans. The latest
World Conditions
.
Exchanges guided by Harold
; course of a
lions of dollars
a,Von-
the
few
Work
the
to
you
healthy and
live longer—at a profit.
are
year.
Population Trend
figure for brokers' loans is only sures
this group of steady rise in
a4 little
over
$1,600,000,000
or
well under 1% of the present . ev®n^es; The, constant increase
value of $198,000,000,000 for stocks m industrial and residential per
listed on the New York Stock capita-use of power should conExchange.
For those who feel4 -11® wlth lncreased use of home
renege? Think
never a
in
move
increasing margins would not appear justified b,y the facts.
This,
98%
of its transacNicholas
speculative
market and the reasons given for
keep
make you
lion last year.
all the goods and services sold in
un-.
are
doubtedly
this year.
this country in a year, is now at :l; '. f, DenarWtlt ctftrM
a record $379 billion annual rate, •
Department Mores
it does not appear that the amount - .We mentioned we have an allof consumer credit outstanding is - time high of 65 million employed,
ata critical level.
/ v
.■
They're doing all right too; recent
The Federal Reserve presum- Wa&e increases for Federal emably was concerned about specu-. ploy ees,, the steel and automobile
lation in the stock market and ^'or1^.f1r.s
werl,1!1 excess ot
so, margins were raised to 70%.
billion a year. This wage mFrom our observation there is no 'j cn^se went to a segment of the
a
tool
consumer
about which
Shorter
trend
keep in
not,
or
credit.
Certainly the it does appear that the scarcity of
night; one is that as a group you dollar figure of consumer credit the metal will continue for at least
belong to a very fine profession, is high. However, when you con- another four to six months. Earnone of which you should be very
sider that our gross national ings and dividends for this indusproud and yet product, that is, the total value of try should be at an all-time peak
to me to-
occur
companies
excellent
an
to
ways
for do-it-yourself or
"rue-it-yourself" hobbies.
It
means
bigger sales of sporting
equipment, sport clothes and
hobby tools of all sorts. You might
their stockholders.
;
certainly will be a boon
drug industry which is con¬
stantly finding new and better
to the
leisure time
and
the '
on
people
of
World
only
cost
squeeze," and reviews current situations in various
industries that justify an optimistic outlook for their securities.
thoughts
coal
obvious
"credit
Two
the
even
week which
en¬
being
quarter
Stocks
interest rates and the higher costs
of borrowing money.
The most
gaged in stock exchange transactions, and gives advice relat¬
ing to customer brokers' responsibilities/
entire
producing
is
already
first
prospect for higher
going to have
Bank
President of the Association of
as
industry
the
and
is
the
into
dividends and stock splits is bright
in this group. Papers, rubbers and
require
the
than
Business
1956
today.
Mr. Crane extols the integrity of those
Customers Brokers,
would
it
aluminum
aluminum
Members, New York Stock Exchange
'
aluminum,
more
By NICHOLAS E. CRANE*
Dean
industry, which is
can
longer range possibility, turned
a
For Various Industries
tin
11
Trailers
rvAn
as
•„
+uia
in
,
this industry which has
-nfi
+
w
u
u
Copies of the Prospectus
item> the airlines undoubt-
may
be obtained from
any
of the several
underwriters, including the undersigned, only in States in ivhich
generally been regarded as a
|rr^ industry, one company,
An-'
such underwriters
and
in
which
are
the
thing else costs more these days, edjy wju g0
jet planes within
ehauf, announced within the
why
not
money?
Instead
of- a f^w years. United Airlines an- past year the development of a; -running scared" because of ris- nounce^d pians to buy $125 mil- ne„w van which carries one-third
ing costs of money and the credit ijon 4e4. HnGr<? Todav's DC-7 costs more cargo, immediately obsolet.•squeeze, we should perhaps
jng 250,000 trailers now on the
qualified to act
Prospectus
may
as
dealers in securities
legally
be
distributed.
.
.
how
think
!
-
wonderful
it
is
that
is so good that the Ad-
business
it
feels
ministration
must
!p0pr£imafely $2millknAcom-
mercial
or
in
I.
desires
Washington
sion* or
_
other administration
am
credit
even
a
a
depres-,,
serious recession.
firmly convinced that these
restrictions will be eased
promptly
should
it
appear
that
business is in danger of a serious
slide.
yWe
4
hear
;
great
a
-
/
deal of high
-
Brokers,
New York City, Sept. 2i,
The Aluminum Industry
1955.
another
been estimated
10
years.
that
the
It
that
-
has
against the present figure of about
they
,
„
The Firsl Boston Corporation
we
added
this
-
-The
will have to spend $100-
industry
has
con-
founded many analysts by showing an extraordinary low break-
jt would take approxi-• even peint This year the group
mately 800,000 tons of aluminum will probably report record
Eastman, Dillon & Co.
Blyth & Co., Inc.
Harriman
Ripley & Co.
earn-
<
Glore, Forgan & Co.
Hemphill, Noyes & Co.
Goldman, Sachs & Co.
Kidder, Peabody & Co.
Incorporated
Lazard Freres & Co.
Lehman Brothers
Paine, Webber, Jackson & Curtis
The steel Industry
steel
Dean Witter & Co.
estimates
automo-
industry alone could add 200
pounds of aluminum
to
a
car
If
>
Administration
billion to bring our roads up to
Par
to handle today's traffic,
Equipment companies, cement
companies, steel companies — all
will benefit,
bile
pounds.
„
Road Buildin&
industry has had a 100%
jncrease in production and sales
onjy five, years.- This is expected to more than double again
within
r
The
r
^is
'30
Prn.^nVoTihe AseBoc,a1io"o( cZ'S'r
*
-
■
*
curbed. :"Neither this Administration nor any
jet will probably cost $6
$7 biillion.
be
Union Securities
Corporation
Merrill Lynch, Pierce, Fenner & Beana
Salomon Bros. & Hutzler
Wertheim & Co.
Schwabacher & Co.
White, Weld & Co.
'*• 1 #v
/
.
12
ftrtrt ■%1
*
The Commercial and Financial Chronicle
(1284)
of
crease
Expanding Production
Causes Inflation
purchasing power and active de¬
mand for goods, long before the
additional goods become available.
The process may repeat itself a
exploiting
demands
wage
officials
Union
omists
and
appear
to have developed, during
Trade
the last year or two, a pathological
fear of the
of
menace
deflation
u n e m
1
o y-
which
ment
period
they expect to
more
Under
the
inflation
this
surely
increase.
more
means
is
that
true
additional
the
production is
automation.
main¬
tained at its increased level, the
increased output snould be easily
They do not
absorbed by the
realize
of
result
from
that, in
spite of the
p r o g re s s of
automation,
the
major
danger is still
inflation
Paul
and
scarcity
Einzig
labor
of
not
and
deflation
and large-scale
un¬
employment, owing to the infla¬
tionary effect of an increase in
the volume of
ing
production
increase
an
in
the
involv¬
aggregate
cost of production.
increased volume
engaged in
those
maintaining production at its in¬
level. In
creased
tion
practice produc¬
is, generally speaking, not
maintained. at. its increased
only
especially
and
demands
wage
in connection
ward
to¬
for¬
put
with
automa¬
tion. It is essential to realize that,
owing to the inherently infla¬
tionary character of an expansion
of
production, the increasing use
of automation devices need not be
feared
account of its
on
deflationary
be
welcomed
as
mitigating
the
stop inflation.
It
is
that
an
a
for
means
prevailing
from
which
reached
the
effect
production
in
is
Additional
continuous.
almost
This
levels.
record
new
increase
an
had
output
that the inflationary
means
of
after
setbacks
temporary
of
each
were
paid
did
which
goods
not
the markets until 1955.
By 1955 production has increased
appear on
misconception
increase in the volume of
This
belief is
popular definition
based
of
the
on
inflation
as
"too much money
chasing too few
goods." On the face of it, it may
appear that, since an increase of
production
means
more
goods
being chased by an unchanged
volume
of
lessening
this
is
money, the result
of
not
inflation.
In
Ignoring
so.
moment any
by
that
of
as
it—it
doubting
no
means
a
with
faced
are
we
an
influence
is
a
reality
for the
in
more
employment
(in the
incomes) is
money
additional
same
quantity of goods.
money
Such
inflationary effect is pro¬
irrespective of whether the
production is achieved
through an increase in employ¬
ment, or through working addi¬
tional
overtime,- or through at¬
tracting labor from lower-paid oc¬
cupations. The only case in which
it does not apply is when the in¬
crease
in the output is achieved
increased
by
efficient meth¬
without involving any addi¬
to the aggregate cost of pro¬
of
means
ods
tion
more
duction.
Saving
and
In addition
Apart from the direct inflation¬
effect of the time lag during
which
the
line,
to
changing the re¬
lation between the supply and de¬
mand of consumer goods, an in¬
crease of production also tends to
change the relation between the
amount of saving and that spent
on
capital
investment.
Saving
would
effect
produce
saved
"investment"
in
exceed
tends to
an
goods are in the pipe¬
increase of production
savings, the effect is inflation,
increase of employment and
rising trend in the price level.
What is not generally realized is
that
increase in the volume of
an
resulting
from
form of addi¬
tional investment in capital.
this.
for
raw
materials and wages.
the
-
called
volume
of
saving
and
that of capital
The
Time
Lag
What is less obvious but equally
true
and
equally
important
is
that, generally speaking, the addi¬
tional incomes created in
connec¬
tion
of
with
expansion
an
pro¬
duction become available long be¬
fore the additional output appears
on
the markets. In most industries
there
is
between
process
fairly
a
long
time
lag
the
beginning of the
of production and the ac¬
tual increase in the output of the
finished goods. This time
lag
extend
over
may
number of months.
a
During that period the additional
income
ployed
received
on
is
an
not
in
em¬
the
additional demand
matched
responding and
crease
those
the increase of produc¬
tion creates
Awhich
by
by a cor¬
simultaneous in¬
supply of goods. It
expenditure. These
ma.y
sound abstract
theoretical
points, but they have important
practical bearings and can be ex¬
plained in practical terms.
Under
the
whenever
multiplier principle,
additional
created—whether
ernment deficit
income
through
or
is
gov¬
outlay by industry or an in¬
crease
in the production of con¬
sumer
goods—tends to generate
further
income
additional
purchasing
employment,
power and de¬
mand. We say above
that the orig¬
inal additional incomes received
by
employees engaged in the increase
of production
is spent on con¬
output
goods before the additional
becomes available.
This
tends
to
sumer
may
lead
which
reduce
to
again
inventories
replacement
means
a
and
orders
further in¬
is
worse,
of
sense
the
increase in
an
working capital is much less
likely than in increase in capital
investment
in
cording
Keynes
lowers,
nomic
to
fixed
assets.
Ac¬
his
and
fol¬
the main cause of eco¬
instability lies in the lack
of coordination between
saving
The
voluntary
capital expenditure.
of saving is deter¬
and
amount
mined
lions
bty decisions taken by mil¬
individuals.
of
The amount
expenditure is deter¬
totally different set of
people, by the much smaller num¬
ber
of
businessmen
engaged in
production. The two grand totals
can only be equal by sheer coin¬
cidence. This is undoubtedly true
capital
far
capital expenditure- is
concerned, but as far as invest¬
ment in working capital through
as
as
increase of production
is con¬
cerned, the state of affairs is even
less satisfactory from the point of
an
view of economic
trouble
of
and
close
the
producers but, on
existence of a
coordination
An increase in the
—
in
the
of
increase
an
in
re¬
consumer
An increase in
demand.
demand
consumer
in the absence of
previous increase in consumer
means,
"invest¬
under
income,
mation
"fixed
assets"
the
in
crease
also
but
—
in¬
an
amount of goods
in
the pipeline — which
he
called
"working capital." In spite of this,
economic
litera¬
de¬
consumers
producers decide to invest more in
working capital through increas¬
ing their production.
sion
of
production
An expan¬
there¬
means,
fore, an increase in the absolute
figure of capital investment in
face of
not
for
because
they
cause
in
investment
additions
of
in¬
con¬
to
the
working
in¬
an
form
capital
by producers.
Impact
looking
this
second
category.
Ninety-nine economists out of a
hundred, when
increase
of
writing about
"investment"
an
of
or
How
automation
It
the
depends
development
affect
the
of
situation?
whether automation
on
mind
plant
same
They
increase
industrial
overlook the fact that
in the amount of
resulting from
increase
an
working capital,
an
increase of pro¬
duction while the additional goods
are in
the pipeline, also adds to
total
invested
in
industrial
The immediate economic
of
increase
an
in
the
of
working capital are
substantially the same as those of
increase in the amount of fixed
assets from the point of view of
an
relation
demand.
between
supply
the
the
of
moment -when
production
when
moment
becomes
sumer
and
It is because of the time
begins
the
available
goods
assets is
well
as
as
inflationary.
final
that
increase in the production of
of
an
con¬
fixed
Admittedly,
production of fixed assets usually
involves a longer time
lag, but the
difference from this point of view
is merely one of degree. The
prin¬
ciple involved is identical.
What
is
to
avoid
in
the
production
of
the
quantity of goods with the
labor, or an in¬
quantity of goods without
reduction in the number of
creased
any
employees.
automation
if
Even
aimed at lowering aggregate costs
instead
it
of
increasing
be
must
the output,
remembered
that
it
cannot be
applied to any consider¬
able degree, if at all, in a large
number
which
industries
of
are
likely to continue to increase their
production by means of additional
employment. These industries will
be able to re-employ the workers
dismissed
mation.
as
of
result
a
auto¬
Progress of automation in
industries where it
reduce ag¬
can
costs would have to be
very considerable before it offsets
the inflationary effects of the con¬
gregate
tinued
expansion
of
in industries which
production
are
both
in¬
flation
check the increase of their aggre¬
gate costs.
of
are
full
that, amidst
employment
and deflation, it is neces¬
that the total of net new sav¬
also in the United States, automa¬
tion is
more
likely to be adopted
ings should be equal to the grand
total
reduce
of
the
amounts
the production
invested
in
of both additional
fixed assets and additional work¬
ing capital. Most economists have
failed
to
•believe
saved
less
to
realize
that
if
cover
additional
this
only
the
fixed
be no. inflation.
the
total
of
fact.
They
enough is
amount
assets,
spent
there
In reality un¬
savings
covers
There
the number
is
of
strong
dustrial balance of power, the la¬
bor unions are likely to be in a
in
majority of in¬
stances to ensure, that the num¬
ber
of
industries
We
saw
above that, owing to
time-lag involved in modern
production, an increase in the ag¬
the
gregate
that
paid
amount
time-lag
out
tends
during
to
produce
inflationary effects. If automation
unable to prevent an increase
is
in
the
aggregate costs
of
the
community as a whole, it will be
unable
to
tion
inflation,
of
It
be
;
may
continua¬
if
even
a
gree.
the
prevent
moderate it to
it
may
considerable de¬
argued
reducing the cost
that, by
unit, auto¬
per
mation may lower the price
level,
even
if it does not prevent the
continued
increase
overlook
sense
long
in
the
aggre¬
Those who argue in this
gate cost.
fact
the
that,
so
the increase in the aggre¬
as
gate cost creates inflationary con¬
ditions, the inflated purchasing
power
would be exercised, and
if the prices of goods
directly
fected
by
automation
are
duced,
this
would
purchasing
press
release
would
by automation.
is by no means
it
that producers will
duction
af¬
re¬
more
which
power
the prices of goods
on
affected
un¬
More¬
certain
for the
use
re¬
of
prices the greater part
through
automation. They may be tempted
to aim at higher
profits; or they
may be pressed by their employ¬
ees for
higher wages.
of the economies achieved
The
in
the
last
that
fact
of
progress
ceeded in
as
in
barely
there
has
was
at
to
unless
appears
automation,
spectacular
a
able
temporary
a
production
that
adopted
achieved
during
the
only suc¬
halting the rise in prices
long
confirm
considerable
States
two
or
setback
so
the
automation
United
year
to
check
rate,
the
is
infla¬
tionary effect of
an expansion of
danger of defla¬
through automation is, there¬
production.
tion
fore,
The
remote.
very
Unions
do
not
The
run
Labor
risk
any
employers
to
by
proceed
employment in certain occupations
—among office workers, in dis¬
tributive trades,
etc.—but, taking
industry as a whole, the danger
virtually non-existent.
is
Wage
Demands Unjustified
Nor is there any economic justi¬
fication for substantial wages de¬
mands on the ground of cuts in
production costs through automa¬
tion.
Those
cuts
needed
are
for
counteracting the inflationary ef¬
fect of the expanding production
on
the
price
level.
Workers
directly concerned in automation
are
not justified morally in de¬
manding the increase of their
wages well above those paid to
workers in less fortunately placed
industries. The cuts in production
costs should be
whole
the benefit of the
community,
be
can
achieved
if
this
and
end
automation
is
for
used
tionary
moderating the infla¬
effect of expanding pro¬
duction.
Needless
to
in¬
Resides
say, there
other causes,
numerable
are
the
employees
expansion of production, con¬
tributing towards inflation. Auto¬
mation will have to progress very
far
before
is not reduced
by firms which install labor-sav¬
it
is
able
Meanwhile,
process.
premature to worry
halt
to
this
it is highly
about its de¬
flationary effects.
Aronson to Admit
employees.
resistance to the
dismissals
through
redundancy,
and, owing to the prevailing in¬
position
in
even
the
But the chances
conditions
and developed for the purpose of
increasing the output rather than
for the purpose of being able to
can
pur¬
unable to
prevaling in Britain, and possibly
important is to realize
that, in order
on
the
progress.
aid of less human
additional
other similar fixed assets.
sary
for
with automation. It may cause un¬
Automation
of
does
results
and
is
it
where automation will make good
allowing
capital expenditure, have only in
the
unless
sav¬
less, but also because,
so,
of
crease
makes
only
save
doing
amount of
this
Clearly
sumers
in
reduced
a
ture has been in the habit of over¬
the
that
means
of
pose
cide to spend more and save less,
ing.
the production of
goods—which he called
reduction in the amount
a
Whenever
saved.
flation
or
This
equipment.
over,
production of
goods is usually the
consumer
a
co¬
sense.
wrong
sult
of
decisions
the
contrary,
too
The
lack
not
between
savers
the
stability.
is
there
ordination
capital
additional cap¬
ital
Keynesian
What
ment" not only
result
paying
duly, realized
included
He
tween
of
a
himself
Keynes
process
result
an
production, is also
the
a
the pipeline
expansion of
in
goods
consumers
"multiplier,"
through changing the relation be¬
so
inflation¬
increase of
an
consumer
an
of
as
generally
a
a
the
indirect
produces
broadest
of
of
produced
It is
ployment and a decline of the
price level, and that when capital
expenditure exceeds the amount
between
are
Keynesian
produce deflation, unem¬
lag
They
capital
rule that when savings
capital
expenditure
it
accepted
effects through the operation
air.
the
of the term.
sense
ary
thin
the
expenditure—or, as it is fashion¬
able though confusing to call it,
also
more
employed
are
of
purposes
goods. The addi¬
tional goods are not conjured out
chasing
disinflationary
a
it not for the fact that
were
amount
ary
Investment
Capital
effects
"Multiplier"
by
goods, the
deficiency
of
saving
compared
with capital
investment (in the
of
capital.
The
about
mined by a
post-Keynesian
tending to perpetuate inflation.
effects of automation,
increase
an
form
for
have
we
result of the time lag
between
the payment of
everincreasing wages bill and the ap¬
pearance of the additional goods,
that,
it should be obvious that any in¬
crease in the output
brought about
means
continues—and
reason
non¬
production has disinflationary ef¬
fects.
the additional goods due in 1957.
Evidently assuming that the sec¬
ular trend of expanding produc¬
tion
is chasing the
more
the
duced
popular
a
supoosed
but should
dangers,
new
for
point, it has in fact
implications of the ut¬ further so that additional wages
most importance from the
point of are being paid out in connection
view of monetary and economic
with the production of additional
policy. It has also an important goods
which
will
not
become
bearing on the attitude of em¬ available till 1956. In 1956, again,
ployers and employees towards additional incomes will anticipate
wards
a
appearance
cessantly. Over the centuries pro¬
duction had been expanding, apart
practical
automation,
is
the
amounts
almost
when
inflationary delay
of the addi¬
tional finished goods during which
in
the
increased
is
but
additional
may appear to be
there
in¬
level
out in 1954 in
connection with the production of
theoretical
a
of
incomes
wages
Practical Implications
Although this
that
each occasion
On
the re-spending of the income re¬
sults
in
additional
production,
goods are bound to emerge from
the pipeline eventually. But as¬
suming
demand
involved in that
even
inflation and not less.
It
brought
production of
ing
in many instances it is net worth
while for producers to adopt auto¬
to
the
of
times the figure
of
goods.
definition of
on
increase
such
of the addi¬
saved, or it
created by the original increase in
production is likely to be several
is chasing an
money
popular
spent
the
additional
total
transitional
also
in the amount of working capital
for repayment of
quantity
unchanged
and
p
that during this
means
amount
but
be paid in taxation, or used
debts, the grand
may
unjustified.
benefits,
automation
Many econ¬
—
assets
term), is bound to result in infla¬
Even though on
part
tional income may be
of automation progress, Britain's
major danger is still inflation and scarcity of labor. Cites
inflationary effects of time lag during which goods are in pipe¬
line and of the "mulliplier" through changing the relation
between the volume of saving and capital expenditures. Calls
the
only
Thursday, September 29,1955
.
tion.
occasion
each
Dr. Einzig maintains in spite
not
fixed
.
increasing
the
output
without
having to increase the
number of their employees. It is,
therefore, probable that aggregate
cost of production will continue
number of times.
By PAUL EINZIG
LONDON, Eng.
production creating ad¬
employment,
incomes,
ditional
.
Bernard
Fifth
Aronson
Avenue,
members
of
the
New
.
745
City,
New York
Stock
admit
Exchange,
will
Wershil
partnership
to
Co.,
York
Philip
as
1st.
Mr. Wershil has been
ner
in David J. Greene &
B.
of Oct.
a
part¬
Co.
V
I
Volume
182
Number 5468
.
.
and Financial
7Tie Commercial
.
Bargaining Future
By JULES BACKMAN*
Professor of Economics, New
York University
of materials which should
Dr. Backman indicates the types
attempting to evaluate the prac¬
ticability of Supplementary Unemployment Benefits for its own
situation.
Cites variations in particular phases of the pro¬
be
compiled by
weekl
employer;
to
cost
as:
grams,
company
a
benefits received;
y
seniority; extent of protection to workers; effective date of
contributions and benefit payments; the waiting period; and
other
title
The
intended
of
convey
with
cerned
whether
not
or
a
will
Ford
company
give
a
Coal Industry.
General
Electric
five year contract provides for a
reopening in 1958 for a 30 day
review of the guaranteed annual
to
workers.
Although
the
se
wage.
same
as
this
not
may
be
so
it
seems
first.
Rather,
that
dictate
will
be
that
Retail Trade: Safeway Stores.
Transportation Equipment: Gen¬
eral
con¬
Jules Backman
with
cerned
of
phase
Dynamics Corp.
the
new
■
idea
which
of sup¬
.
Aviation: Boeing.
Some AFL unions
contract
Ford
recent
introduced
Kennecott
have come out
opposition to SUB. Two unions
that have taken such a stand are
in
plementary
unemployment bene¬
the Upholsterers
fits
into mass production
ists..
(SUB)
indicate tnat a com-1
months
few
which prepared itself to deal
solely with a program indentical
to that of Ford would probably
find itself inadequately prepared
to
evaluate the demands made
it
determine
to
or
variations should
program
what
be made in the
to meet its own peculiar
My task today is to in¬
situation.
dicate the types
ing
a
of materials deal¬
internal operations
should compile in
its
with
that
company
evaluate the prac¬
ticability of SUB for its own sit¬
uation.
By way of introduction,
it is useful to review the provi¬
sions contained in the various pro¬
its
attempt to
adopted up to this time.
Diversity rather than uniform¬
ity has characterized
the SUB
plans adopted. They have in cornmob a program to supplement
state unemployment compensation
grams
1
There is also similarity
in the cost to employers and the
benefits paid—to" those who re¬
ceive them.
However, the dura¬
tion of payments,
the seniority
requirements, the provision for
dependents, methods of payment,
and related provisions have dif¬
fered between industries, within
industries, and in contracts signed
programs.
by the same union.
Moreover,
all companies and
have not jumped on the
unions
and
Among the in¬
companies
which
adopted
SUB in some form
bandwagon.
SUB
dustries
have
are
General
Ford,
American
Motors, Chrysler Corp.,
Motors, White Motors.
Equipment: Allis Chalm¬
&
Deere
Caterpillar
Co.,
Tractor, International Harvester.
Can: American
Can, Continental
Can.
■
Railroad
Glass:
Equipment: Budd Co.
Pittsburgh Plate Glass,
Libby-Owens-Ford
Among the industries and companies' which have not adopted
SUB in 1955 bargaining since the
Ford
plan was announced are the
hour be paid into a
fund
trust
each hour worked.
Ex¬
for
ceptions include Continental Can,
which
with
pays
♦An
the
hour
payment
additional
an
an
of
cents
25 cents per day
per man into the fund. Most plans
provide
that
when
the
fund
reaches its designated maximum,
the employer is relieved of fur¬
ther payments.
Under the glass
program, however, the payments
are
continued but the excess is
ators, who
used
pay
provide additional vaca¬
to
tion pay.
(2) Weekly Benefits Received by
Employee: It is generally provided
that
inclusive of the state unem¬
compensation,
ployment
the em¬
ployee will receive a total of 60
to 65% of his take home pay. The
Ford and General Motor's plans
municipal
and
which
contributions
and
required
be
be
to
col¬
employers
to
may
vary
In effect, SUB provides
varying benefits and uniform costs
while UC provides uniform bene¬
widely.
fits
and
this
respect.
such
SUB dif¬
varying costs.
fers from other fringe
benefits in
fringes,
other
For
holidays, vacations, pen¬
as
the emphasis usually
benefits received and
bargaining attempts to
uniformity in terms of
etc.,
sions,
is upon the
pattern
achieve
lected, deducted, or withheld by benefits rather than in terms of
the
company
from
regular costs. This is
particularly marked
weekly pay." In the American in connection with pension plans
Can plan, only income taxes are
for which hourly costs may differ
deducted
determine
to
take home pay.
higher base than
Ford plan. The actual dollar
straight-time
provides
This
the
weekly
benefit
a
received
the
by
em¬
(b)
total
The relationship between
benefits
received
and
weekly earnings is less than 60
to
65%-
for
a
Under the Ford plan,
man
with
a
wife and one
child, 65% take home pay is
equal to 56.6% of basic weekly
earnings; 60% of take home pay
is equal to 52.2% of basic week¬
ly earnings. For employees with
fewer dependents, the ratio of
benefits
still
to
lower
earnings is
because higher in¬
weekly
payments reduce their
pay.
The ratio is
somewhat higher for workers
with more than two dependents.
The relationship to actual week¬
come
markedly than ben¬
on the degree to
which provision is made for fund¬
much
more
efits depending
ing and the age composition
of the
work force.
of
the
summarized
other provi¬
plans
SUB
may
be
briefly:
Ford
pro¬
and most of those negotiated
employees
by the UAW apply to
than
service;
contracts pro¬
Despite the variations noted, we
be a general
Extent to Which Workers
Protected: The
SUB
Fully
are
generally provide a maxi¬
of supplementation
which will be paid to each worker.
Under the Ford plan, the maxi¬
plans
amount
mum
supplementation
mum
It
week.
of
only employees with service
three years or more.
ing
upon
this
the
difference
layoff
in
Depend¬
seniority
protected and in
overall drain on the fund.
workers
(4)
crease
re¬
the
received.
As
by
address
Dr.
Backman before
Association
Management
American
Conference,
'Sept.1 27,.1955.
'
.
Personnel
weeks and 60%
following 22 weeks.
for the
which
Chalmers,
Allis
negotiated
was
later, provides 65% for the entire
26 week period.
The UAW has
indicated
that
this
is
now
its
the higher paid workers do
relative pro¬
mum,
not receive the same
For
,
.
:
in
example,,
maximum
sharply after the 26th week
there is no offsetting
This Is
not an
to
buy,
offering of these shares for sale, or an
any
dependent up to
The General
Division
(Road
vide $2 for each
less
or
would
less would be protected
or
home pay
of less than $86 a week
65% of the total
receive
would
in
these
pay.
However, as the wage scale
now.
climbs,
a
steadily smaller propor¬
tion of the workers would
the
percentage
fied
in
with
higher
pay
workers would
UC
protection
the plans.
only by the Offering Circular.
Common Stock
his
weekly base pay. For the worker
not entitled to UC, the maximum
Price $5.75 per
is 50% of weekly rate.
under the
Continental Can plan is $51 and
Share
$66.82
Can
American
per
week, inclusive of UC. Under the
Allis Chalmer plan, a worker not
covered by
UC,
can
Copies of the Offering Circular may
receive $48.30
plus $2 for each dependent to a
maximum
of four or a total of
HILL RICHARDS & CO.
$56.30.
the
Under
low
Can
benefits
amount in
90%
of
program,
are
reduced
the fund
the
be obtained from the undersigned.
the
as
falls be¬
maximum posi¬
the other
by reduc-r
September 29, 1955
receive
speci¬
For companies
scales,
fewer
be protected than
Continued
($1.00 Par Yaluc)
pay
Most workers
companies are protected
Pryne & Co., Inc.
layoff
to
65%.
Workers with dependents and take
the extent of the designated
provides the worker may
receive six times his base hourly
rate but combined UC and layoff
not exceed 66%% of
of
single
with take home pay of
workers
Machinery Workers Alliance, Inc.)
pay may
protected
plan,
Can
American
the
be
In the last 26 weeks
60%.
52,000 Shares
contract
a
$122 would be protected to the
of
$61 or 50% while a
worker with take home pay of
maximum of four.
Euclid
$36,
home pay
extent
NEW ISSUE
American Can and
Continental Can provide for 65%
for 52 weeks. The Can plans pro¬
with a
of
of
offer to buy, or a solicitation of an offer
of such shares. The offering is made
workers.
state
a
benefit
UC
minimum goal.
tion. The Ford plan, on
City,
; .TV;'
" hand, protects the fund
York
New
result of this maxi¬
a
straight-time
Duration
because
payments are not
antee when UC
experience, $72
quirements could mean a signifi¬
cant difference in the proportion
of
is
for the last 26 weeks of the guar¬
for
tect
a
Ameri¬
first 26 weeks
increased to $46.80
the
for
then
and
$25
is
the same for
is
Can
can
$101
actual earnings.
have what appears to
plan.
(5)
the Can companies'
tax
home
Ford
weeks.
follows
plan
principle, although with
relationships than in the
same
different
with at least one year of
of Benefits: The
UAW contracts provide protection
for a maximum of 26 weeks, which
is the duration for UC payments
in the more important industrial
ly earnings is even lower than
states. The Can companies' benefits
these figures indicate, because
are paid for 52 weeks.
Generally,
the
payments
are
based on
the
relative
costs
for benefits,
straight time earnings rather
where
they must be paid, in¬
take
the
Can
Ford worker with take
The
Seniority:
(3)
gram
American
26
for
over
or
years
tection as the lower paid
in
variations
The
sions
25
The
provide for 65% of take home pay
for the first four
the
,
three cents
contingent upon with¬
drawals from the fund and the
Atlantic and
Gulf Coast .Oper¬
two
weekly
following:
.
provided
is
it
an
for
1
taxes
kind, minus "all
state,
costs
The maximum payment
Aviation: Bendix Aviation.
?
In most
that five
(1) Cost to Employers:
plans,
cents
Motor's
Farm
bonuses of any
Federal,
premiums and
all
of
phases of the SUB programs may
be summarized as follows:
a
the following:
Automobiles:
ers,
exclusive
pending upon the definition of
take home pay used.
pany
upon
take home pay is defined
ployee will vary moderately de¬
in
variations
The
the past
during
the Ford
particular
industries.
Developments
and the Machin¬
take
of
40 times the base hourly rate,
would
I
definition
The
plan
as
Picher.
in-
to
•:
Tire, Goodyear.
Copper, Anaconda Copper, Ameri¬
can Smelting and Refining, Eagle
at
<the title is in¬
tended
& Co.,
and of weekly benefits to
plans, two points should be noted,
(a)
Ferrous Metals:
Non
fantastic
as
In the
Can
is also
lesser extent for em¬
are
home pay may vary. In
F. Goodrich
B.
Rubber:
Firestone
size,
for similiarity of costs to employers
weeks
paid.
plan this
benefits
with these benefits in the various
This contract was with the
union that obtained the SUB
from General Motors.
ttlements
in
General
The
package
grow
the
Equipment:
Electrical
Electric.
each of
car
its
cost
out in
come
address is not
my
the idea that
collective bargaining will be con¬
to
estimates.
opposition.
of
necessity
Stresses
restrictions.
Mentions unions that have
of
number
the
which
Is There A Ford in
13
payment. Depending on the lay¬
employ¬ off experience, the increase in pe¬
ees
in the different plans.
Since riod of protection from 26 weeks
American
the relative importance of layoffs to 52 weeks could mean a sub¬
done to a
stantial increase in the cost of the
ployees with less than 20 years' varies widely among industries
seniority
when
the
fund
falls and the level of UC benefits var¬ program should economic condi¬
below 50%. When the Ford fund ies among the states, it is clear tions become adverse. In the Ford
plan, the precise duration of bene¬
is below 13%, the benefits are re¬ that this does not show the en¬
duced by 20%.
This provision is tire picture. The safety valve is fits will be determined by the
found in widely differing provi¬
number of credit units accumu¬
not contained in the Allis Chalm¬
sions for eligibility to receive ben¬
lated by the worker, by the rela¬
ers
plan. Here again, the UAW
tive size of the fund accumulated,
has indicated that the Allis efits, the periods for which ben¬
and
by the seniority
of the
Chalmers plan is now its model. efits are paid, the highest wage
which is fully covered, and related worker. For example, no worker
The glass company plans pro¬
factors.
If we consider the pack¬
may
accumulate more than 26
vide for payments between $15
age
of benefits to
include the credit units a year.
When the
and $30 for 20 weeks, if the em¬
weekly supplement, the duration trust fund position is 85% or over,
ployee is laid off or if he is ill.
of payments,- the eligibility, etc.,
then all workers can receive the
However, the payment may not
then while the initial hourly cost benefits up to 26 weeks.
How¬
exceed
10%
of his account. - It
to employers is about the same, ever, if the trust fund position is
also
vests in
the employee the
the package of benefits varies con¬ less than 49%, then workers with
money set aside.
If he leaves the
siderably. This is directly opposite seniority of less than five years
company or retires, he is paid the
to the situation which prevails for can receive benefits for a maxi¬
balance in his account. If he dies,
UC. Under the state programs, the mum of only 13 weeks, those with
the balance is paid to a benefici¬
package of benefits within the 15 to 20 years' seniority for a
ary.
A similar provision is found
state is the same for all employees maximum of less than 21 week?,
in
the
Gejneral Motors'
Euclid
in
a
given category, while the and only those with seniority of
Division contract.
In connection
ing
You
(1285)
Chronicle
on
page
40
14
The Commercial and Financial Chronicle
(1286)
moderately,
Savings Banking in
The Dynamic Age
By AUGUST IHLEFELD*
k
cusses
Says there
of
changes taking place in the national
forces at work that
are
Urges
activity of mutual savings
advocates easing of curbs and
individual savings deposits accounts.
accounts.
more
banks to stimulate thrift, and
restrictions
American
been
ol
economic history has
marked
several periods
growth and prog¬
by
accelerated
The
ress.
on
movement
westward
transformed
nation
the
within
from
of
series
a
seaboard
settlements
to
continental
a
The
power.
great
of
era
railway build¬
ing,
within
decades
two
following the
Civil
War,
bound
August
er
Ihlefeld
togeth¬
the 48 states
with
work
and
and
of
steel
goods
people could move speedily
cheaply. The age of indus¬
trial
consolidations, in
of
years
the
early
this
century, paved the
large - scale production
for
way
and
net¬
a
which
over
distribution.
We
witness today another
national
varied
our
the
are
of
one
forces
such
and
many
that
propel
forward that I doubt
them will give its
economy
any
So
upsurge.
this
name
to
have
already
Atomic Age.
although
era,
christened
some
it
the
I prefer to call it the
Dynamic Age, because change it¬
self is its dominant characteristic.
The most striking features of to¬
day's Dynamic Age are:
(1)
An
in
upsurge
population
that will give us close to
200,030,000 people by 1970, and
possibly
300,000,000 half
(2)
A
sonal
century hence.
a
continuous
incomes.
Well
rise
of the
nation's families
$5,000
a
15%
as
only nine
(3)
to
year,
in
over
a
per¬
third
earn
compared
years
over
with
ago.
A shift from home renting
home
ownership.
percent of
the
other
farm
than
their
Fifty-five
dwellings
occupied by
nation's
are
owners
today, as compared
only 40% in 1939.
with
(4) A vast movement of people
from
cities
to
jacent rural
suburbs
and
ad¬
areas.
(5) Striking advances in tech¬
nology, of which atomic power
and
automation
dramatic
are
merely
the
examples.
(6) A powerful urge to expand,
displayed by virtually every type
of enterprise, which reflects the
general
revival
of
faith
in
our
economic future.
Banking in the Dynamic Age
Banking has both reflected
facilitated
the
of the past
striking
15 years.
Banking
is
a
ments
of
gov¬
These financial require¬
are
and
pace
needs
business. and
closely attuned
character
of
to
the
economic
growth.
During the stagnant 1930s bank¬
ing's chief task was to conserve
resources.
become
mercial
Since 1940, it has
again
highly
bank
dynamic.
deposits
.Com¬
have
panded threefold in 15 years,
*An
ti>e
of
New
1&55.
ku-
by Mr. Ihlefeld
before
Meeting of Croup Five, the
Banks
Association
of
the
State
York, Brooklyn, N. Y., Sept.
20,
work
The
that
also reduce the proportion of
personal savings placed in savings
thrift accounts.
thing,
one
into
money
is
forms
more
contractual
of
primary role of savings and
associations
loan
is
finance
to
home
ownership.
By
fostering
savings and loan
associations make a major con¬
tribution to the well-being of the
American people. They seek thrift
home ownership,
encourage
belong
mutual
of
role
dominant
savings banks is to stimulate and
thrift. Every other ac¬
tivity is subordinated to this ob¬
to
depositors
setting aside
a
to
and
reserves
banks
can
Savings
follow
/
#
Now,
in
this Dynamic
Age,
more
savings are urgently re¬
savings
attractive return
maintaining
safety
banks
their
very
and
li¬
insist
must
legislative
upon
authority
to
depositors to the
suburbs through
branches.
Mutual
savings banks are and
will always remain community in¬
stitutions.
But
when
depositors
move
by tens of thousands from
cities
jective.
surplus,
while
high standards of
quidity.
(2)
after
and
reasonable addition
pay an
for thrift
deposits to provide funds for this
primary objective.
The
Thursday, September 29,1955
.
to
rural
areas,
suburbs
and
adjacent
savings
the
banks
should be permitted to continue to
them
through limited and
quired for our nation's economic
savings banks have enjoyed proportion could rise in the future. health. In the depressed 1930's the regulated authority to relocate ex¬
This would lessen what is left for requirements for business capital
isting, or to open new, offices in
almost as great a growth.
Share
these areas they have helped to
were at a low ebb. The emphasis
capital in savings and loan asso¬ discretionary types of savings.
Discretionary savings, in turn, then was on spending to stimulate vitalize.
ciations, which are freer to adapt
Mutual savings banks have done
economy.
Today,
however,
themselves to new conditions, has are divided between savings and the
thrift accounts and direct invest¬ savings are needed in large vol¬ a great deal to make the socially
expanded more than sixfold.
At the
cial
over
serve
half the total and the
ment
time, newer finan¬
same
institutions
have been
in
United
States Savings Bonds. The
devel¬
securities,
of
bulk
great
including
ume
finance
to
new
homes, new
public works of states and local
municipalities, and the new pro¬
ductive facilities required for nur
desirable
the
shift
of
population
to
suburbs
possible, b,v promot¬
ing thrift and through financing
home ownership, new residential
construction,
and
other
capital
improvements.
It is inequitable
discretionary sav¬
has gone into
savings and thrift accounts. But rapidly rising population and liv¬
U. S. Government trust funds have
revival of public interest in com¬ ing
standards.
The
alternative
accumulated $50 billion, invested
mon stocks could result in a larger
would be to finance a large part as well as unsound economic pol¬
entirely in Treasury obligations.
proportion being invested directly of these needs through commercial icy to prevent them from follow¬
Pension funds are growing at a
in equities.
bank
credit
expansion,
which ing their depositors to the sub¬
rate
of over
$4 billion a year.
Since
both
Prospects for sustained rapid would mean still more inflation urbs.
commercial
Open-end investment companies
its
growth of savings and thrift ac- with -.all
disadvantage
and banks and savings and loan asso¬
are absorbing savings at a rate of
accounts are thus clouded both by dangers.
ciations possess broad and flex¬
a billon a year.
the tendency to spend more for
ible
branch
banking authority,
In an era when thrift has once
consumption and personal
debt
The Prospect Ahead
again become so essential it is why not savings banks?
service, and by the growing pro¬ senseless to hamper and restrict
Restrictions upon their places
Brilliant as the record of the
portion of savings going into con¬ the one
of business should be relaxed for
major group of institu¬
past 15 .years has been, our fi¬
tractual
and
direct
investment
savings banks. Broader authority
tions whose primary objective is
nancial
institutions
cannot
be
channels.
to open branches, needless to say,
to foster thrift among all classes
complacent about the future.
would be exercised only with the
of people.
True, our economy is bound to Competition for Savings Accounts
approval of the Superintendent of
It is high time, therefore, that
grow, barring a disastrous atomic
Three
groups
of
institutions
Banks, to assure that a need ex¬
the states in which mutual savings
war.
But great economic and so¬
compete actively for savings and
ists for the services of a savings
banks
operate, and particularly
cial changes are in the making, thrift accounts.
bank
in
a
community where a
New York State which historically
and only institutions that
adapt
Commercial
banks,
operating has held the leadership in savings branch is to be opened.
themselves successfully to change
throughout the country, in many
banking, free them from obsolete (3)
can expect to share in the
Savings banks will want to
growth. areas without competition, are the
restrictions.
broaden the services they pro¬
Existing
curbs
on
Mutual savings banks doubled
largest holders of thrift accounts.
branches,
restrictions
on
indi¬
vide to keep pace with eco¬
in size during the
1940s, and they They held nearly $45 billion' of vidual
deposit accounts and pro¬
nomic and social change.
are
growing almost as fast in the personal thrift deposits in April hibition of
deposits of surplus
As the level of family income
1950s.
Their ability to continue of
this
year.
Many commercial funds accumulated
by small busi¬ and
wealth
to expand at any such
rises,
the
average
rate, how¬ banks have hitherto been rather nesses and the like have no logical
American
needs
more
financial
ever, will depend upon three fac¬ indifferent to thrift accounts heplace in the savings bank law counsel and services.
Some
of
tors, namely:
cause
they were not considered
today.
these
needs
savings banks can
but this
attitude
is
(1) The volume of personal sav¬ profitable,
At
the same time, the
public satisfy; others they are not per¬
changing. With commercial banks
ings.
interest would be furthered by en¬
mitted to serve.
But as savings
keenly interested in making con¬
(2) The proportion placed in
couraging formation of new sav¬ bankers we must keep an open
sumer
loans, they are coming to
savings or thrift accounts.
ings banks in many areas that do mind, and be ready to step in
regard the thrift depositor not so
not now possess such institutions.
(3) The ability of mutual sav¬ much as a source of
where suitable opportunities pre¬
funds, but as
This calls for an up-to-date model
ings banks to maintain or increase a
sent themselves.
potential
borrower from
the
their share of the funds
savings bank law. New York, as
Savings bank life insurance has
going into bank at high rates of interest.
the
leading savings bank state, proved
savings or thrift accounts.
a
sound supplement to
In 1940, commercial banks held
should take the lead in drafting
Personal
savings service. It is an example
savings
last
year
over
50% of individual savings such
a statute. It may be desirable
of how the job done by savings
amounted to $18 3 billion, accord¬
and thrift funds. Their percentage ■
also to authorize existing savings
banks can be broadened.
ing to the Department of Com¬ has declined to 45%. We
may ex¬
banks
to
subscribe out of their
A
field that deserves careful
merce.
Nearly half of this total pect strong efforts by commercial
surplus to a fund from which study is the investment of pension
went
into savings or thrift ac¬ banks
to
check
this
declining advances could be made to newlyfunds of smaller businesses and
counts. Mutual savings banks re¬
trend.
organized savings banks, to sup¬ of retirement trust funds for the
ceived 22% of such funds.
Savings and loan associations, plement contributions to initial
self-employed
when
the
latter
Let us consider, step by
step, the less subject do restrictions than surplus funds provided by local
gain legislative approval. It would
outlook for personal
savings, for other institutions, have been very incorporators.
be highly desirable to give
the
savings and thrift accounts, and aggressive in their efforts to at¬
employee a treasured passbook to
for mutual
A Program for the Future
savings banks speci¬ tract funds to finance the current
represent his growing equity in a
fically.
high level of home building. They,
The need for more savings in
pension fund, instead of a partici¬
held 14% of all the funds in sav¬ our
economy in this Dynamic Age
The Volume of Personal
pation that seems vague and re¬
Savings
ings and thrift accounts in 1940. is urgent, while the volume of
mote, especially to younger per¬
Even if the pace of economic
Today, their proportion is 28%, savings tends to be reduced by sons far from
retirement age.
growth is sustained, it is doubtful and
rising.
the
freer
spending fostered by
that
the
American
Another new service that may
people will
Mutual
savings banks, which prosperity.
continue to save 6 to 7% of their
be practicable is a "variable sav¬
held 36%
of savings and thrift
Mutual savings tanks, the only
disposable income, as they are
ings account," consisting in part
funds in
1940, hold 27% today. major class of financial institu¬
now
of a
doing.
participation in an equity
Considering that savings banks tions whose primary and dom¬
fund of fluctuating value.
For one thing,
Such
optimism about operate in only a limited number
inant
objective
is
to
promote an account would
the
future and such devices as of states
give a higher
and are severely ham¬
thrift, thus have an invaluable rate of return and afford some
medical and unemployment bene¬
pered by outworn restrictions, this contribution to make to the na¬
fits
tend
to
protection from inflation to the
stimulate spending is not a
poor showing. But inability
tion's economy.
Their ability to
in importance
vie
oped
and
with
old-established
now
institutions.
ings in recent
years
.
and
lessen
the
to
pressure
save.
Secondly, a high birth rate and
the growing size of the
average
In
the
third
families
place,
who
millions
have
bought
of
new
homes
face repair and improve¬
outlays that did not confront
when
they were renters.
Finally, mounting mortgage and
to
branches
open
to which
areas
ing,
outworn
limits
and
in
suburban
population is shift¬
deposit
account
them
consumer
debts
will
absorb
a
growing slice of personal income
for
debt
service.
Personal
could
be
handicaps seri¬
ously threaten the ability of savr
ings banks to compete on an equal
posable
income
therefore,
another
could
$17
way,
remain
billion
the
the
of
this
around
or
of
in
6.2%
it
year.
Put
sound
the
current
even
decline
a
program
Constant improvement of the
service
thrift
policy to
A
relaxed
spirit
de¬
offered
making of personal loans
depositors on a limited scale for
be
contingencies also
of a complete
could
thrift
part
a
service.
Above
atmosphere, friendTy
human
and
The
to
certain
positors.
economic
tribution
creasingly
warmth
savings
of
are
tank
all, the average family
professional, objective.guid¬
needs
ance
as
its financial
in
size
interests
in¬
and
large-scale consumer lending and
other highly profitable activities
that are being pushed so aggres¬
variety.
In
buying and financing a home.and
car,
in incurring mortgage and
personal debt, in accumulating
life
insurance, savings accounts
and securities, and in setting up
a trust estate, many problems not
easily understood by the layman
commercial banking is to provide
nation with demand deposits,-
sively by the commercial bank of
arise.
today.
people in
the chief component of our
money-
Moreover,
increasingly
to
the
nation's economy
service
Economic
Role
of
Savings Banks
The
that
branches
crowded
The
primary
economic
role
of
the
savings
(1)
characteristics
dis¬
the
adoption of
like the following:
by
hamper and curb mutual savings
banks in this way? That
depends
upon the importance of their con¬
1939,
of
personal
level
Is
future
4.1%
saved
than
quarter
in
the
sured
footing in the future.
today.
savings
nearer
saver.
make this contribution can be as¬
other
ment
second
address
Annual
"s
ex¬
at
may
absorb
industry, family swells consumption needs.
service
catering to the financial
individuals,
ernment.
and
advances
Savings Accounts?
forces
are
.
tual
one
generation
in
Much
There
company-contributed
employee
thrift plans. Such savings are very
stable because they do not involve
an
act of will on the part of the
savers.
Contractual
savings now
economy.
personal savings, and foresees increased competition for
savings
investing
savings such as life insurance,
social security, pension plans, and,
most
recently, so-called "guar¬
anteed
annual wage" plans and
reduce the proportion
may
perform quite well. Holding
savings is merely
and secondary.
now
and
going
referring to the present as the Dynamic Age, dis¬
the role of banking and the trend of personal saving
in relation to
IIow
For
Mr. Ihlefeld,
though incomes
incidental
and
President, Savings Banks Trust Company
.
even
mount.
.
supply. This is
a
very
vital func¬
tion; which the commercial banks
are
as
appreciated
commercial
become
more
in¬
bank
busy,
places preoccupied with
savers
are
becoming
conscious.
All
earnings of mutual savings banks
rate
crease
If the
rank
and
file of the
communities can be
persuaded to come to the savings
banks
jective,
as
our
the
sure
qualified
source
of
counsel,
ob¬
we
Volume
would
182
Number
have
only
to
the
promotion
of
(1287)
that
not
More
public in the
thrift
but
at
to
assure
the
Spending Needed to Keep
tne
y
the
By ARNO H. JOHNSON*
(4) Modern methods of market¬
ing, including effective ad¬
vertising and public relations
Vice-President
Director
and
savings
fulfill
of
their
tising, Mr. Johnson points out, in order To keep
mission
primary
as
is
going
already
we
mobile and
be
to
very
keen,
the
auto¬
in
see
1954.
Thrift
ularly
thrift,
will
have
has
bank
all
of
the
time
story
State
of
and
of
service
classes
mutual
the
service
and
i
g r o w
keep
The reach-
savings
only
as
who
run
ing,
in
Arno
ou.r
of
for
possible in the stagnant 1930s.
Growing savings banks need a
regular program of recruitment
and training of personnel, to as¬
their
ability to get the people
they need to do an even better
serving
the
We
public.
should consider the establishment
School of Savings.
Graduate
a
Banking at
university, to pro¬
training
for
a
intensive
vide
in I the1
State
(6) Every
should
•
be
model
;
savings
urged
Union
enact a
to
bank
to
law
promote the organization
new
savings banks
and
of
to
make
of
possible
conversion
savings and loan associations
into
mutual
where
to shift their primary
sis
beneficial
empha¬
that
has
proved
the
to
nation,
importance
enhanced
by
greatly
and
has
the
growing need for savings, should
not be limited to 17 states, and
severely hampered by outworn re¬
strictions in many of these. The
states
ice
it
owe
make
their citizens
to
to
mutual savings bank serv¬
a
readily available to them.
perfecting
By
by overcoming ob¬
solete and inequitable restrictions,
their services,
and
ings
organizations, mutual sav¬
banks,
America's
as
eminent thrift institutions,
in
position
contTibution
this
in¬
their
strengthening
by
ternal
to
to
the
make
the
pre¬
will be
fullest
economy
in
Dynamic Age.
our
S.
Ford
will
labor
force.
a
port
a
finite
expan-
both
a
it
of
to
balanced
a
strong
the
line
to
more
of living.
Advertising—The Educational and
Activating
*7»rre
Advertising
force
—
the
is
the
of
force
14 years
further evidence
sj0n in
js
the
just
spending in 1955
in line with the
step
a
growth
to
need
we
Billion
.
Just
to
capita
More
to
Is
$40
Consumers
to
equal, in
production
Sell
1956,
the
per
had in the
we
r^f
_
acquire
a
partner in E. D. Fox &
in
total
Opportunity for Market Expansion
Productivity and Population
—As
Grow
In the next five years,
if
increase
we
the
by 1969,
productivity
capita of our labor force at
^
we
increased productivity
five
the
years
from
Auction of^ at least $430 billion
whlch
ot $320 billion and
purchases
private
and
^500 bllllon and a standard
of living measured by over $350
billion of sales to consumers. This
checks with the President's goal.
minimum—about 10% above 1954.
would
this
But
allow
for
—
Actually,
our
ductivity- in
the
capita
per
14
The
there
(Billions
In 1955
pro-
tion—but
Prices)
Increase
more
1905
Jncr. Need,
Oppor¬
be educated
1955-1965
billion
than
$114
$145.0
$236.5
$91.5
$350
Goods___
81.8
120.8
39.0
175
learn
86.4
29.3
38.4
130
to this higher stand-
45
with
to
encourage,
standards of
examine
16
Goods.
.
That
for
the
changes
power
that
Continued
the immediate job
measures
r
This announcement is neither
50%
in
Increase
this
But
Standard
Selling Job
The
current annual level of about
to
to
sell
nor a
solicitation of
an
offer
to
buy
any
can
on
hillion.
$500
or
S 1.000.000
Republic of Cuba
Veterans, Courts and Public Works Bonds, 4%, due 1983
$360
(Dollar Series)
more,
in dollars of the same
power."
Furthermore, the Joint Com¬
mittee on The Economic Report,
in its October 1954 study "Poten¬
buying
tial
Growth
Economic
United
States
During
of
the
over
by
even
Next
Copies of the Prospectus
will
a
qAllen
*Frcm
fore
the
We will have to increase
an
Exchange.
12, 1955.
Dealer's
address
National
Convention
may
be obtained from the undersigned.
pro¬
require
major increase in our standard of
living.
98% plus accrued interest
the minimum
$500 billion of
1965
Price
the
Decade," pointed to an opportun¬
ity for a gross national production
of $535 billion for 1965.
support
of these Bonds,
offer is made only by the Prospectus.
1965
President, in his Economic Report
to Congress on Jan. 20, 1955, gave
a measure of the opportunity and '
the selling job for the next
10
years by pointing out that "our
country can within, a decade in¬
crease
its
production from the
billion
offer
of
by
only the start!
is
an
The
by Mr. Johnson
Mutual
Funds
be¬
Sales
sponsored by the "Investment
Digest," New York City, Sept.
September 29, 1955
&
Company
living.
purchasing
second
selling and advertising!
rather
purchasing that go along
higher
44
14.1
consumer
Let's
54
48.0
15.2
Durable
produc¬
will have to
hinder, the higher levels of
in 10 Years
tunity
Total Sales to Consumers
billion—
increased
consumers
from ard of living necessary to utilize
that productive ability. And we
years
1940-1954
<1954
1940
purchasing power can be
through
no
level of $250.5 reached
quarter of 1955.
peak
lev^.1
over
investment, this would point to the
need of expanding consumer sales
ment
sold in 1954 and about 10% above
the
a
worker would, by 1965, in™°„U7ld ™fnn " Afmf^frlnSted d'Cate 3 leVel °f productl°" °
in
Services
in
to
we
must
1M0p_-ourable
the
1950
shall have the opportunity for a gross national pro1955,
come
mKK
14 Years
$237
growth
Jar7el7 determine.future of
business and investments.
in
1956
opportunity for
probabili¬
national
production and consumption over
the next 10 years since this will
for
the rate
for
Job
immediate
Let's look first at the
ties
encourage
(Table I.)
The
an
living standards — improvements
^at can mean huge new markets,
expan-
Approx.
1956, would
$277
the
that
1954.
internal growth pres-
substantial improvements in our
consumer
TABLE I
Sales to Consumers
consumption
over
great as the
as
physical volume in the
from 1940 to 1954. That's
/.*
the
to
1A
10
increase in
educational
-
end
vol-
next
growth whatever in productivity.
We
popu¬
dollars
17%
Increase
"activating"
bring the total level of personal
about
*o
Demand
and
nearly
billion
bv
to
standard
capacity.
our
Forty
pales,
level
a
with
is 1V4 times
years
the
are
goods and
f"esA ™ °"r,dy™™* * "ftifSSS
lnS American economy that point
by $25 billion to $261 billion as a
revenue
living of our American
lation
standard
a
sup¬
budget
defense.
advance
to
variety of goods and serv-
jces ancj investments that measure
We
large
the
continued
need
it
provide
to
for
need
production
total
enough
Co., 61 Broadway, New York City,
members of the New York Stock
cont.nuing
We
duction
membership in the New York
Stock Exchange and on Oct. 1 will
become
what statisfies them, and-change
their level of demand for the in-
in
national economy.
level of
James
did
we
There
than
physical
in
more
&!hecLradnegSeirethelraiIeafeof 5«per
higher level of consumption just to keep up with our
growing productivity and growing
To
E. D. Fox Partner
.
than
1956
high level
in
sold
$40 billion
services in 1956 than in
expressed
broadening
and
in
Living—The
economic
Whose
been
wish
thrift promotion.
to
institution
An
so
banks
savings
associations
such
President in his
10 C°nSreSS in
assure a
a
be
just to keep up
growing productivity and
So both our productive ability fjrsj; sjx months of 1955 would reof personal consumption expendi¬
and purchasing power point ur- qUij~e selling $25 billion more to
tures of over $300
billion com¬
gently to the need for rapid lm- consumers in 1956 than in 1954
provements in living standards, This should be the minimum goal. pared with S245.8 billion in the
quarter o£ 195g
But these improvements can take
Our national productivity in the
Further, a continuation of this
Place only if mass millions of first half of 1955 was approxirate
of increase in productivity
Americans change their habits,
serious
the
$350 billion of con-
increase
to
our
gumers
1954.
oi,.
this
need
savings bank executives.
younger
purchases, plus
over
of about $25 billion -annually in
personal savings.
•
~
-■
sell $40 billion
goods and services to con-
sion in
of
sumer
In fact, we must
Problems of personnel cannot be
to solve themselves, as was
left
of
a r y
boom"
fear and wish to cur-
by
1954 to
our
income to individuals,
to
unemployment,
the minimum goal
living up to a $500 billion level
production by 1965 as envi-
more
1965 could yield
by
crease
reach
sioned
in
own
era
of
$500 bil-
the "inflation-
Johnson
avcid
to
over
This
Ume
ume
true
jabor force we must sell to con-
durable goods
more
our
In other wordSi
ui
services
more
purchases
the $277 bil-
consumer
billion and
needed to support
productive ability,
1954.
$16 billion
after taxes, of $375 billion. This
would be sufficient for an in-
It has been just in line with
sumers
job
disposable
not
the growth that will be necessary
to utilize our productive capacity,
full
sure
is
1955
lion possible
tail.
and
heavy
credit
of
many
to
higher taxes,
defense needs.
The
for inflation,
"spending
spree" or the
H.
Dynamic Age.
to the
and
people
this
our
production level of
in
that
rapid economic
growth, competition for qualified
personnel is very keen. But un¬
less savings banking continues to
attract
able
young
people, and
unless
these
young
people
are
trained and given responsibility as
fast as they are ready for it, we
contribution
build-
the
them.
expect to hold
in
be
can
highly competitive
banking, and so make
in
and
use
In this period of
cannot
than in
increased propopulation since
The
ment
home
billion
of
an-
This widens the
between the
lion
hillion raore non-durable
in 1954.
$44
about
the end
billion
1954 level of
than
in
an increase of 92% in real purchasing power—even after adjust-
man.
the
living
purchases,
into
as
in
consumer
broaden
banks
increase
1940, for example, has resulted in
mo, tor
nas
new
new
heights
to
with
savings
effective
of
of
/i
in
production.
ductivity of
American
ing
billion
j
an
achieve
to
$40
of $237
of
rate
by
total of $403 billion
or a
to
gap
with
therefaced with the need
capita,
per
up
productivity,
nual production.
opportunity
„
goods
Such
The mag¬
is indicated by
the $350
consumers
standards is
perfectly possible,
Purchasing power is created by
population.
; stitution is only the lengthened
Mutual
of
the
of
sales
the
1956,
?qp? we will production ability in
killiorr have to sell:
1965
with
$237
areas
living.
$2,400
15
annually
Just to keep
growing
our
with
„
to
services
1954."
i
g
covers
of
fact that
..
.
billion sales needed to support our
compared
n
living
given
out
a
among
*
and
at
import-
opportunity for
all
of
a
r
of
■
.
"7
nitude
n g
and
a
standard
branches,
let
us
not
forget
Carlyle's statement that an inshadow of
T
.-
the
consumers
.
the standard
by at least 50%, to a
level of $350 billion
h
c
carry¬
goods
of
does
sales
national economy in
increased sales
minimum
productivity
growing
population.
reach
sales
up
New
communities
n g
more
still further
with our
expand
to
are
we
in
effectively
more
of
(5) While we improve and
.
if
must
balance
again
expression to the need for
the
it
The Savings Banks
economy.
York
markets, with
new
safely expanded by 60% in 1956.
to
spending and saving
Association
huge
mean
Business has been good in 1955.
But
these
techniques
reasonable
a
between
can
the
utilize
to
advanced
maintain
ing
be
institutions, and partic¬
same
our
sav¬
savings banks whose pri¬
function it is to promote
mary
Says this
producer
time contribute
our
7*
Holds real purchasing power in the U. S. has
increased 92% over prewar period, and consumer credit could
As pressure to get people to spend
increases, the margin left for
ings tends to shrink.
our
advertising.
other industries.
some
with
up
growing productivity and labor force, we must sell to con¬
sumers $40 billion more goods and services in
1955 than in
Competition for the consumer's
dollar
serving
educating many people to a higher
standard
of
living
and
to
the
higher levels of consumption that
our
productivity and resources
Stressing importance of bet'er marketing and greater adver¬
promoting thrift.
the
of
profitable
same
antly to
to
institutions
self-interest
the
■
•
while
service
or
through
Research
of
J. Walter Thompson Company, New York
programs, are essential to en¬
able
increased
1954
fore, we are
for a production
•
t
to
about 2%%.
product
depositors.
these needed "1940
The aggressive and intelligent advertising of a worthy
loyalty
•
•
bring^ about
can
changes in demand. This is not
placing advertising on an altruistic
pedestal.
invaluable
an
of
time
our
The Commercial and Financial Chronicle
.
.
.
opportunity
render
added service to the
same
5468
make
page
46
The Commercial and Financial Chronicle
(1288)
16
It
would
hard
STREETE
one
ket's climb has.been
Wall Street's
"Figure Phil- covery extended beyond the
berts" were kept hopping this pivotals: — Issues advancing
past week posting the many totaled 809 out of a total of
new
records
The declines
brought about 1,255 traded.
by what is being referred to numbered 271.
the
as
"Eisenhower-scare
market"
from
—
the
differentiated
as
Eisenhower
boom
jje
*
Other record
statistics
or
de¬
to
thing there
were
hardly any margin calls
resulting from the plunge on
Monday. And then the mar¬
THE MARKET... AND YOU
By WALLACE
be
For
termine.
of late that
only
*
*
CONSOLIDATIONS
NEW
BRANCHES
NEW
OFFICERS, ETC.
CAPITALIZATIONS
lost.
*
Clinton
Vice-Presidents
market
put
cialists
William
Renchard
S.
have
been
to Executive Vice-
promoted
fact
the
In the brief span
time — a
week
of
a
week's
today
through Tuesday of this week
•—here's
what
(1) The
that most
out.
rang
transpired:
All
this
all
in
The
weekly in¬
terim
indus¬
trial
average attained a new
record high of 487.45 on Fri¬
period had as many in¬
teresting aspects as have been
crowded
into any week in
many years.
There were cre¬
freak situations
day. (The rails just missed, ated many
reaching within one cent of for the technicians to work
the previous best level.)
out; such as the wide gap left
(2) The
same
average in the day-to-day pattern
plunged 31.89 points on Mon¬ chartists follow by the abrupt
day for the widest point de¬ drop on Monday. Then too,
cline since October, 1929, and there remains the question of
the
widest
percentage loss whether Monday's lows must
since the fall of France in be tested before the long up¬
May, 1940. At the low the swing can be resumed,, as¬
if
points be¬ suming that the major por¬
hind last Friday's
tion of the widespread selling
closing.
The rail average of this
service declined 11.15
points
on
Monday, the worst setback
encountered
ever
by this in¬
dex.
has been lifted.
pressure
Blue
than
more
It
not
was
had
turned, the
chips" took the major
(4) On Tuesday, when the
pounding. Just look at the
market rallied
smartly, the ten most active stocks on
recouped
setback
10.37 points of
on
and
this
new
record.
day,
represented a
too
It
the
was
gain in the industrial
since
Oct.
the
12.86
best
average
point rise
on
6, 1931.
(5) Volume reached 7,720,000
shares in
and
Monday's rout
amounted
shares
to
Monday:
its
the previous
Complete Volume
Steel
168,300 Chrysler
Changes
Close
57
202,500 U.
S.
___
91%
—5%
—8%
It fell behind
as
minutes,
and
of
than
more
couldn't
floor
catch
much
for
a
three
up
transactions.
to
as
19
The
19-
lag set a new record
going back to the outbreak of
the Korean War, when it ran
as
late
27 minutes.
as
(7) In
do
at
those
"ChronicleThey
those of the
as
Bache to Take Over
Bache
&
securities and
take
offices
Florida,
Haven,
it
announced
of
was
Bache,
by Harold L.
partner of Bache
senior
Co.
offices
under the Bache management will
Operations
commence
&
three
the
of
Bache said.
&
Co., Incorporated,
of the
New
York
Stock
—5
ers
74,000 Anaconda
67%
22%
—5y2
—8%
organized
—2
George M. McCleary who served
Because
Association
its
ers
buy¬
quality issues—
favor the
some
are
the
tops
limited in their in¬
issues have led
market's
in
in
climb
recent
savage slash
the start of
to
months,
new
the
in their price at
this
another group
the little guy.
week
hit
of investors—
He had just
about decided these
were
the
Monday's market
the year,
How
and then some. Evi¬
that Tuesday's re¬ done to
much
damage
the average
was
investor?
Mr.
Johnson
heads
Division,
and
Renchard
of
the
the
Messrs.
direct
the
of the National Division.
Oil
Mr.
Gas
and
Renchard
Department and
the
Wall
Street
if
a
if
service to American
The
Chase
New
York
America,
1954 by the
The
death
his
until
organization,
fice and
with
headquarters at 556 Central Ave¬
firms
Manhattan
opened
a
Bank
new
of
branch
Mr.
Howard,
than
at
30
of the
veteran
a
years
Vice-President,
branch.
of
more
of service with the
bank, has had, it is added, exten¬
sive foreign banking experience in
as
in St.
331
West
specialists in Florida municipal
and corporate issues.
Mrs.
George
widow
the
of
late
if
McCleary,
President
of
pointed
a
branch.
In
St.
Leesburg,
Craig will remain
Genver G. Mann
manage
Petersburg
as
George
O.
Manager and
will
continue
to
the recently opened Win¬
ter Haven office.
Bache
branches
&
in
Co.
also
Palm
has
Beach,
Florida
Miami,
and two in the Miami Beach area.
Acquisition
of
the
McCleary of¬
fices brings to 49 the number of
branch offices and affiliates main¬
tained
by Bache in this
Canada and abroad.
country,
Horace
C.
to Chief Clerk and then to Branch
tary and in January, 1937,
sistant Vice-President.
Mr. Korbel
an
As¬
At present,
is officer in
charge of
the bank's recently enlarged Col¬
Circle
Office,
969
Eighth
Avenue, New York City.
been elected
a
facturers Trust
Director of Manu¬
Company, of New
President
nounced
on
succeeds
Flanigan,
Sept. 27.
an¬
Mr. Leithead
Chesley R. Palmer, who
has retired from the bank's board
(Special to The Financial Chronicle)
after 25 years of service. Mr. Leit¬
BOSTON,
Mass.
—
Nancy
Mc-
Cauliff has been added to the staff
of
B.
C.
Street.
Morton
&
Co., 131 State
head also had succeeded Mr. Pal¬
mer
as
of
New
27, Adrian
Chairman
Massie,
the
of
promotions:
Office
Avenue
Seventh
Company
the
of
Seventh Avenue at
—
Street.
39th
if
if
#
President
of
Cluett, Pea-
body & Co., Inc. seven years ago.
Bank
Savings
14th
at
the New
Trustees of
The
dividend
new
depositors
its
to
ments
York
Eighth Avenue
New York, have
on
Street,
announced
pay¬
the
for
The
plan, it is stated, rewards the "long
term," saver with something extra
quarter ending Sept. 30, 1955.
"3%
—viz.
year
one
on
money."
of payment provides
method
The
dividend at the rate
and a special
dividend at the rate of %of 1%
for "a regular
of 2%%
per annum;
on
money
on
annum
per
which has
deposit in the bank for a
year."
The bank believes "that a regu¬
lar
dividend
positors and
the
money
establishes
of
for all de¬
2%%
special dividend on
with it for one year
a
fair and equitable
a
pattern of rates for savers."
Richard
L.
Maloney,
Jr.,
is
President of the bank.
if
if
if
James P.
of
Sept.
Quarter
26.
The
Sayings Bank
joined
Y.
N.
Brooklyn,
bank's
.
Murphy, Personnel Of¬
ficer of The Lincoln
Murphy
the
Century Club on
club
now
members, 16 of whom are
Mr.
Barry T. Leithead, President of
Cluett, Peabody & Co., Inc., has
*
B. C. Morton Adds
New
Company
September
the
of
The
Raymond
F.
Assistant Vice-President,
was
appointed Treasurer of the
Company. Francis X. Lavery, As¬
sistant Treasurer, was appointed
an Assistant Vice-President at the
Manager. In September, 1932, he
was appointed an Assistant Secre¬
York,
held
ing
ap¬
ufacturers Trust Company, of New
umbus
of
Board, and Hulbert S. Aldrich,
President, announced the follow¬
Vice-President of Man¬
Flanigan, presi¬
sociated with Bache & Co. Edwin dent, announced, on Sept. 26. Mr.
Korbel
joined
Manufacturers
S.
Crooks, Manager of Bache's
two Miami Beach branches, will Trust Company in 1927 as a pay¬
serve
as
Acting Manager of the ing teller. Later he was advanced
newly-acquired
M.
full
York
Trust
York
York
been
if
if
Edward J. Korbel has been
M.
if
meeting
a
Directors
of
Board
full-time representative
Lebanon
for
several
years.
in
#
if
a
Petersburg and branches branches in the Far East and
Cuba.
The
offices
of
the
new
Magnolia Avenue in
branch are temporarily located in
Leesburg and at 259 West Central
Avenue in Winter Haven, is ac¬ the Pan American Building, until
tive as stock brokers, underwrit¬ permanent quarters in the Abboud
ers
and distributors of corporate Building are ready for occupancy
in January next.
securities and mutual funds and
nue
1
an
Adams,
Division.
As
Office.
Street
111th
formerly
was
Following
on
addition, Mr. McCall supervises
was Frank A. Howard,
late will be in charge
of
President
recently.
Securities
McCleary & Co., will become as¬
institutional
In
Directors
announced
Exchange, the Philadelphia-Balti¬
Beirut, Lebanon, on Sept. 28.
more
Stock
Exchange, the Na¬ The bank has maintained an of¬
of
J.
Exchange Bank, of
was
in
Association
Arthur
Assistant
Manager at the 72nd Street Office.
He
doing business in the Near East,
McCleary
members
it
International
McCall
Monday, Oct. 3, Mr.
on
York
and business
Leesburg
Petersburg,
Winter
New
acquired Sept. 23.
has
the
over
com¬
McCleary & Co., Incorporated, in
St.
the
Stock
exchanges,
will
William S. Renchard
members of the Presidents
by
Exchange and Chemical Corn
Co.,
York
San
at
manager
Rico.
bank's
of the
McGleary & Go.
New
sub
a
Stewart has been named Manager
48%
Status of "The Little Guy"
him to the Caribbean
Overseas
Division,
at
Puerto
Juan,
Dealers and the Investment Bank¬
back best.)
has assigned
Head Office in New York. He was
tional
chips
these, and such favor¬
Charles
Assistant Cashier and
an
formerly
—2%
blue
State
City Bank of
has appointed
York
E. Harris
District,
—4
the
The First National
New
author only.i
25
45%
Besides
York
New
value.
any
44y4
73,400 Am. Airlines
New
Sept.
$500,000 consisting of 20,000 shares
(par $25 per share) to $600,000 in
shares of 24,000 of the same par
the
presented
are
the
cf
on
Banking Department of its plans
increase its capital stock from
of
with
*
Bank
approval
received
from
16
*
to
this
in
some
dencing
Company has main¬
representative offices in
Merchants
York
they
expressed
coincide
time
Manufac¬
years
Trust
The
years.
necessarily
not
De¬
open
London and Tokyo.
It
interesting to watch
views
| The
article
"going stocks" and apparently
38 issues advanced
had gobbled up a bit of the
while
1,274 were being
pivotals here and there.
pounded. It made the day's
*
*
:5s
swing the most one-sided of
only
morsel
many
83,700 Pennsy
78,200 Radio
74,500 Rep. Steel,.
period
because these
hours,
minute
Banking
office will
The
For many
tained
Monday—
on
92,900 Central
—7
vestments to such issues—and
actual
International
1.
turers
be
—2
Tuesday. The Mon¬ among
day total was the largest for ites at Bethlehem Steel and
any session since back in the
Jersey Standard, the recently
depth of the depression—best strong issues came in for
since July 21, 1933. With this
heavy liquidation in the pe¬
start it was indicated
weekly riod. U. S. Gypsum, Douglas,
volume also would set a new
Royal Dutch, Phillips Pete,
top for many years.
ran off
quite sharply on Mon¬
(6) While in Monday's de¬ day.
(It is true, they were
cline the ticker kept up with among
those that snapped
day when the recovery was
developing, it was being taxed
to its utmost almost all
day.
Oct.
tell
may
128,100 Sperry Rand
22%
110,800 Gen. Motors 135
on
actual transactions except for
a
few short spells, on Tues¬
in
should be
as
5,500.000
its
partment.
—from the sidelines!
modity
surprising that
when the market
the
real
first
the
have
and
"blue
Dow-Jones industrial average
Italy, with an office at Via Lazio
9, corner of Via Veneto, it was an¬
nounced on
Sept. 28 by Horace
C.
Flanigan,
President
of
the
company, and Andrew L. Gomory,
Senior Vice-President in charge
of
given
chunky bone
thrown to them
other leading
Chip Pounding
will
bears
the
Company
if
if
coming week
average was 40.71
(3)
Trust
has appointed Augusto Castiglioni
as
its
representative in
Rome,
*
Exciting Markets
ago
Dow-Jones
if
Manufactures
C.
Johnson, Howard W. McCall and
recovery most of the shares
pivotals had open¬
they were forced to "take on"
The Week's Log
ings ranging from 30,000 to in
establishing markets Mon¬
The list of new landmarks 75,000 shares on Monday and
day in their respective issues,
reached by the market at this many did not open until just most of us would be
greatly
before the market's final gong
juncture is a formidable one.
surprised.
market" of the past two
years.
Bankers
and
REVISED
profits,
the spe¬
pretty much on the
*
spot.
But these boys are
pretty canny, and if they
near-record
didn't work off in Tuesday's
included
News About Banks
steep
so
paper
in most cases, were
The
Thursday, September 29,1955
...
was
has 56
retired.
installed
as
a
of the club
bank's dining
John W. Hooper, President
member at a luncheon
in his honor in the
room.
of The
Lincoln, congratulated Mr.
Murphy in the presence of officers
and trustees. Frederick Seifering,
President of The
Lincoln's Twen¬
ty-Five-Year Club, acted as toastmaster at the luncheon and pre¬
sented an inscribed watch to the
new
member.
Mr Murphy is a
graduate
of
New
York
Chapter
Volume
182
Number 5468
.
.
The Commercial and Financial Chronicle
.
(1289)
last
Canada Rises From the Recession
By HON. WALTER HARRIS*
Minister
of
Finance, Canada
beginning to over¬
difficulties, and most
are continuing to
produce and sell more goods and
services
and
to
employ
more
people.
year
are
their
come
other industries
Retail sales in June of this year
In reviewing the economic recovery of
Canada since the reces¬
sion of 1953, Finance Minister Harris discusses the Canadian
fiscal and budgetary policy.
Estimates national output in
Canada in 1955 increased $25 billions, or 6% over previous
above
11%
were
the
level
of
a
earlier.
year
The Labor Force
of Canada has
substantially
since
last
summer
by about 160,000 —
nearly 3% — but the number of
people at work has grown by
few years.
Why is this important?
(1) Because it gives strength to
NATO alliance by restoring
social stability in Europe;
(2) Because Western Europe is
the
an
and
materials
raw
of
demand
more
for
The Results of
exports.
Recovery in Eu¬
include:
rope
be reduced. Urges
may
freer trade between U. S. and Canada.
..
,
,
_■
,
1954, and particularly
is true that on top
of the seasonal slump in business
During
last winter, it
activity, there was in Canada and
the
United
States
an
,
,.
,
.
1.
.
j
,
.
.
I therefore estimated that, barring
unforeseen events, 1955 would see
a national output of at least $25y4
billion, or 6% more than last year.
Many people at that time thought
that this was over-optimistic, but
additional and
were
undesirable
about
amountof
ii
1
n p m d
dustries.
some
,
,
„
jabor
•
nrnt.nont
•
To
people it
if
as
the
23,000 from
This
force>
approacb
last
is
pretty
a
beginning to
high level of
employment
Gross National Product
As
mentioned
I
budget
T
sec-
ondary manufacturing
in-
looked
„
.
Julvl
a
C^n^dwn Budget Policy
o v—
+,
oTou?
enough to say that
entitled to be.
about
fin
and amounted to 2.6% of the
year
first budget was
kind
unemnloved
of
(jown
was
Consequently, the
183.000.
number
budget policy had almost decided
itself
With a higher national
product, there would be an automatic increase in revenues on the
basis of existing tail rates
and
forecasts
,
a
^
bjj]jon
f
a
d
Hon. W.
and employ-
E. Harris
,
marked
so
continent
in
to
come
Most
feature
a
previous
did
us
American
North
not
chronic
the
United
problem
that
of
economy
the
were
deep-seated.
or
States
there
excessive
of
tern-
share
not
troubles
The
pessimism.
had
years
at
'
of
this
of
least,
.V."
end,
an
porarily.
consider.
ment that had
.
been
just thfi Minister </Trade and Cornabout balance the expenditures
mer
will release the calcula.
But there were other things to Uons ^a(]e
In
"was
a
inventories
in the hands of manufacturers and
distributors and the liquidation of
'these inventories meant, for the
time
being,
less
investment
therefore
This
if
in
in
can
the
call
United
as
States
United
it that—
unfavorable
Canada,
on
the
less
and
employment.
you
some
sions
production,
plants,
new
recession
States,
had
in
less
repercus-
bound
to
do.
of
also had some
problems of declin-
course,
the
we
same
ing demand to contend with in
Canada, and difficulties in some
of our manufacturing industries
which
had
creased
had
to
cope
with in-
international competition,
had
We
decline
in
production
manufacturing
industries which had expanded so
a
those
of
some
since World War II and
especially since the start of the
greatly
fense
I refer to
War.
Korean
production
de-
some
industries,
tex-
tiles, automobiles, electrical goods
and
in
we
had
Prairie
the
had
which
a
adverse
some
poor
Provinces,
conse-
for the rest of the econ-
quences
omy
And
on.
so
harvest
too.
^
The
Budget Question
April of this
jng
for
of
would
tax
help
tbe
^be
Tbig
r
second
year,
there
was evi-
nomic situation.
decline
The
to
come
and
United
end
an
employment
move
also
the
in
tivity
and
true
in
ac-
States had
production
was
forward again.
consumer
jn„rpa„p
:n
™™hing
a
beginning
This was
Canada, through our
to the United
At
the
same
time
PPnnnmir>
$2g bmi
nual
terms.
This is
a
Looking
would
the
at
from
result
revenues that
the probable
is
cr0p,
still
over
Ontario
This would be the case if
the total production was to increase enough to make up for TO"
ground that had been lost in 1954,
and to increase still further by
the normal annual growth of two
or 3%.
Since I felt that we could
reasonably expect the Canadian
economy to reach this position in
about a year, or at least be in
sight of reaching it, I felt that
the tax policy for the year ahead
of us should anticipate this condition right now when it would
do the most good.
Consequently, I recommended
United
was
year.
some
year
the
the
has
had
unfortunate
re-
exports this year are
10% above the levels of last
our
and one can see no evidence
of any decline
very
wheat
in demand in the
States, where business is
active.
Since
the
United
States is by far our best market,
hope to keep our trade relations with that country as free of
difficulty as may be and we are
having a
conference
with the
we
American representatives of the
Joint Canada-United States Committee on Trade later this month,
It will be our intention to place
before the American representatives, the needs of the Canadian
exporters and all matters which
The closer a country moves towards a position of high emplovfiscai year ancj i said that con- ment,
the greater becomes the
sequently there would be a def- danger of inflation. In some of the
icit
for
'the coming year as a countries of Europe, evidence of
wh0le
the strains and stresses caused by
this
higher
level
of
production
'
the
The Improvement
in the Economy
full employment of resources
is beginning to show itself in the
a reappearance of foreign
exchange shortages. All of us
form of
jn 1955
the
result of European progress,
a
of the
dismantling of import
,
measures
1 J^ve saia, ;n®®®
i.
should be concerned that a soluof
forest products, minerals, weJ*e.
r
y some pcop e tion
these difficulties can be
chemicals and the like was well as being based on aniove -optim- foun(j
by
pubijc
an(j e private
maintained.
Of course, the out- istl<: view of our economlc Pros- measures 0f restraint, without reput of the basic resource indus- Pecls*
■
sort to the undesirable forms of
European demand for our exports
of
increased
ex¬
reflected in greater eco¬
nomic activity throughout Canada.
For that reason and for others we
doing anything which
will make it difficult for
overseas
countries to sell their products in
the
obtain
to
United
all
the
us
they
can
they need
purchases from
their
for
pay
us.
States
dollars
'
To
sum
ment
the
it
up,
have
we
seems
indicated
as
to
a
desire to assist in
our
costs
of
that
me
Govern¬
cutting
commodities
by re¬
ducing taxes, and I can assure you
that the only desire is to provide
a
climate for the intelligent and
vigorous competition which has
always marked the Canadian busi¬
ness
world. We,
therefore, ask you
view, namely,
keep costs down and aggressively
to
take
the
same
seek business
that
so
we
can
con¬
tinue to improve our standard of
living.
Disposal
Of Atomic Wastes Reported
Capt. Theodore J. Williams and Lieut. William L'a R. Rice,
of U. S. Air Force inform American Chemical
Society of
research on a method to soak up "hot"
discharges from
nuclear reactors.
Safe
disposal
of atomic wastes
they could contaminate drinking
sealing the supplies.
radioactive
residues
in
"The
glazed
clay minerals, such as
bricks, United States Air Force kaolinite and montmorillonite are
be
can
achieved
by
officers reported to the 128th na¬
tional meeting of the American
Chemical Society; at Minneapolis,
found in varying amounts in many
of the soils encountered. It has
Minn,
when
Sept. 13.
on
Research
on
a
method
to
soak
"hot" discharges from nuclear
up
in
reactors
clay,
which could be
been found that these
comprising
of the total soil
a
clays, even
small fraction
weight, markedly
influence soil properties.
it can be seen that by
.
.
.
Thus
studying
baked into bricks and glazed for the
reaction
between
the
clay
easy handling, was outlined in a minerals and typical fission prod¬
scientific
paper
presented
by uct solutions, one can be reason¬
First Lieut. William L'a. R. Rice, ably certain that the studies would
project officer in the fuels and show how
soils
would
behave
lubricants branch of the materials
under
similar
circumstances."
For the disposal of radioactive
laboratory at Wright Air Develop¬
ment Center, Ohio.
Lieut. Rice, wastes,
the
speaker
visualized
who has a degree in chemical en¬ either mixing a solution contain¬
gineering,
described
fellow ing radioactive materials with clay
in a thin, soupy slurry, or allow¬
of Physical and Inorganic Chem¬ ing the solution to trickle through
istry what he said were effective a column of clay. Either way
procedures for fixing radioactive radioactive particles would be¬
ions
(tiny particles carrying an come
firmly
enmeshed
in
the
electric charge) in clay. The re¬ clay. After water is removed by
search, using the clay mineral draining, filtering or whirling, the
known
as
montmorillonite, was clay, (now radioactive) could be
to
scientists of the Society's Division
conducted
at
the
USAF
Institute
of
Technology, under the direction
of Captain Theodore J. Williams,
a
co-author of Lieut. Rice's paper.
Captain Williams, who holds the
D.
degree and is assistant
professor of chemical engineering
at the Institute, called the clay
system
"a
practical
disposal
Ph.
Dangers of Instability and
Inflation Abroad
did
not
suggest
that the economy would average
I
benefits
are
Means of Safe
seasonal
Western
reductions.
However,
As
and
an-
will permit the continuation of the
high level of business activity becertain important tween the two countries.
Parliament
Much progress has been
removing undesirable re¬
on trade, such as import
quotas and prohibitions and ex¬
change controls.
4% increase
usual
instead
(c)
the
and of course the drought in
suits. But
it
Europe,
of being
borrower,
or
recipient of grants, is now increas¬
ing its investments abroad, par¬
ticularly in the under-developed
countries. That is, Europe is re¬
suming its customary role as a
capital exporter.
quarter and 9%
figure of $24 billion,
j| would appear therefore that if
tbe
level of
production 'in the
concern
ports
international
the 1954
apparent that the existing tax rates would begin to
produce a surplus, perhaps beginning about the end of the fiscal
year,
(b)
an
first
tbe
over
over
have just had
some
countries, in¬
cluding the United Kingdom.
a sharp
-.rtivitv
measUred in
Canadian Commercial Policy
The
and
ed
level
than
There
omy.
exports
increased
States.
industrial
that
show
throughout the whole of the next
>
m
will
quarter witnessed
spending and
encourage a larger amount of in- seconcj quarter is reasonably well
vestment
and
enterprise,
and maintained
during
the
second
thereby reinforce the expansion bajf 0f the year, the forecasts I
that
was
already going on.
I made at budget'time about the
therefore felt that our tax policy size 0f tbe national income in 1955
should be based, not on the im- wm
be
considerably surpassed.
mediate
prospects,
but
on
the
There
are
some
uncertainties
longer-run prospects of the econ- ahead of us; there always will be.
increase
jax
in
dence of improvement in the eco-
to
kinds
certain
to
^
By the time of the Budget
,
I happen to have said on another: occasion that when taxes are high,
we
run the risk of diminishing
the initiative and enterprise on
which we all depend for a healthy
and expanding economy.
And I
also believed that a reduction in
question of tax rates.
last
were
Canada, since only by selling to
to be taken in
by the D B s COncernGross National Product
seconcj quarter of this
growth of the economy during the
Of
in
First apd foremost, there was
the
trouble
any
is
the forecast revenues would
they
revival of inflation
Colleague,
steady
growth
of
production
than
year
have been stable for three years,
although measures to prevent a
strictions
about $26
rate
Control of inflation. Prices
made in
*f
thg
h d
on
lo«a Produg
gbout
g
bs
have /
thgt
my
based
were
{he'^ that
aye
earlier,
(a)
this
must avoid
—
and, with this in view, tax rates
year,
of
year.
the
world, including Canada, and thus
a
more prosperous Europe means
grown
controls, Canadian exports to the
Kingdom, for example,
were 35% higher in the first half
United
market for the food¬
enormous
stuffs
17
method
and
worthy of much
further study."-He said:
"The ultimate plan of disposal
is
to
absorb
one
the
radioactive
ions
the clay
particles, then to com¬
press the clay particles into bricks.
Finally the bricks would be fired
and glazed, resulting in a package
which
would
be
impervious to
leaching and thus perfectly safe
for ultimate disposal in the ocean
or underground."
Lieut. Rice expressed a belief
that his experiments also would
help to predict the extent of con¬
on
made into
bricks, glazed and dis¬
carded.
Using solutions of iron, to check
experiments, and
lanthanum, an element typical of
the type found in fission products,
previous
Lieut.
Rice
tions
for
determined
what
he
best
condi¬
decontaminating
radio¬
considered
to
be
the
active solutions with clay. Accord¬
results, a pound of
clay, mixed, in
about 24 gallons of water, can tie
up
about
three-quarters
of an
ing
his
to
montmorillonite
of
ounce
work
as
water.
hold
lanthanum.
well
The
with
It
does
more
or
not
less
ability of the clay to
lanthanum
is
also
affected
by the acidity of the solution, the
speaker reported. When the solu¬
tion
was
taken
up
less material
acid,
was
by the clay than when
In the result, the events of the import restriction that were presthe
solution
was
neutral.
The
last few months have shown that en{ a few years ago. Happily, it tamination in the event of an
greatest amounts of lanthanum
out the recession phase, and have these expectations have been sat- would appear that the lessons of accident to a nuclear reactor.
If
v/ere
held
by clay in alkaline
gone on growing since then.
isfactorily fulfilled so far. Indus- the last 10 years or so have not dangerous fission products, ac¬
New capital investment—always trial production, construction, ex- gone
unnoticed and fiscal • and cidentally released, were to reach solutions, but some of it was not
a
great provider of jobs and in- ports and consumer spending have monetary measures are being used the
ground, he observed, they bound up in the clay structure and
comes—had slumped a little in all risen impressively. Let us look to restore a proper balance, there- would flow in solution with the
later it could be leached out.
1954 from its hieh level of
1953 at a few statistics at the half-year by making it unnecessary to retries
—
and
the
employment
in
them—continued to grow through-
...
but
was
.
mark for Canada as
beginning to grow again
Manufacturing
by the spring of this year.
This
saw
was
summer
the broad picture as I
it when
planning the budget,
was
an
address
by Finance Minister
r^ChLfottltownrp!1]?.6L^ept.
12,loss.
*
whole.
it
was
that
g%% over the
Last summer
below the level of the preby 5%. We have found
of the manufacturing
some
quantitative
impose
this
middle of last year..
vious year
♦From
up
a
production
controls
on
ground
water through surround¬
"There
The Trend Towards Freer Trade
in Western Europe
The economic recovery of Euhas been one of the most
rope
industries which were in trouble encouraging features
Benson Co. Formed
ing terrain. He added:
imports.
of the last
that,
the
on
is
a
distinct
possibility
coming in contact with
soil, part if not all of these
dissolved
radioactives
removed
from
would
solution
be
before
A. W.
Benson
is engaging in a
securities business from offices at
130 West 42nd
Street, New York
City, under the firm name
son
& Company.
of Ben¬
j
18
The Commercial and Financial Chronicle
(1290)
Canada's
Continued
ores,
a
at it, and since the other trunk line is
government
owned, CP is the rail equity of Canada. But so
from first page
Such
beef, wheat, timber, and latterly, oil.
outmoded
diverse
is long
ments
(and
any
profitable)
per
CP's other invest¬
are
of oil, we
few current notes. Well over
day is going into exploration,
are
number
the
six
Company and British
American are moving ahead, but perhaps the
swiftest recent gainer has been Canadian Petrofina, Ltd. This enterprise, sponsored by Belgian
lar
crude
built
and
Calvan
Oil
has
enjoyed not
a
steady
a
runs,
cuts
been
run
from
Seven
Islands,
year,
on
at
in
ore
further
(on
Railways in Quebec,. from Beattyville to
a new
well that about
covers
line
that
for
This
shield,
a
moment
a
the
It's
in
areas
the
at Pine Point,
south, vast iron
Superior),
uranium
district
Oka
Montreal, and swing
tremendous
nickel
of Ontario,
up
.
National
U.
and
repair
the Atlantic
2,000 miles
moves
having quite
a
building boom in
booming
more so.
repair work this
year
$5 billion, will involve 20% of Gross
Product
(twice
S.); and will employ
high
as
a
ratio
a
as
the
work force of 500,000
people.
Big in serving international wants
,
leaders
minium
Lake;
as
Asbestos
Ltd.
are
such
Corporation Ltd. and Alu¬
Asbestos
Corporation Ltd. is the
largest independent producer of asbestos fiber
lead
in
the
Quebec.
River
$5
more
minerals
as
been
will exceed
deposit in the
rare
Dock
Massey-Harris-
drydocks, ship
on
Canadian construction and
Just
Blind
at
prosper
We've
upper
cobalt and
Later
Ltd.,
the U. S. but Canada has been
at Steep Rock Mines
ores
and
near
and
of the most
uranium in Canada
Canadian
Co.,
com¬
further inland.
In the Northwest
Sudbury
look
the
square
world.
Foundation
to
years
the suppliers of
Canada Cement Co.,
—
Canada,
on
yards, warehouses and terminals should expand
broad "U"
where
one
of
Ferguson Ltd.
vast
Great Lakes;
northeasterly to
Corp.
Dredge,
Ocean, skirting the eastern end
present products.
copper
Waterway. It will take three
materials should prosper
new
Mines), many gold mines at Yellow-
Lake
power;
Canada today would be
on
lot of
well without
very
uranium
As for Canadian Pacific,
Canada any way you
a
(Pronto, Algom and Consolidated Denison),
prospect to run from Grimshaw north to the
shores of Slave Lake.
rence
the West, in southerly direction
on
mineralized
amazing
coun¬
earning
proven
plete and while that's going
knife (N. W. Territories) and at Great Slave
the St.
try; extensions are underway by Canadian Na¬
Chibougamau (159 miles), and there's
do
minerals
Port Radium the lushest
tional
in
can't
back
its
(Eldorado
miles
new
Lawrence, north to the Labrador iron
about
Labrador meets the Atlantic.
at
and
remiss if it omitted the impact of the St. Law¬
Steel
of Great Slave Lake down to
look
have
talk
from the Arctic
mar¬
Mines,
Impact of St. Lawrence Waterway
big
are
as
miles,
Gold
coming along.
population
glacier trodden terrain known
fabulous
around. 360
the
and
of
then
being abandoned each
Canadians
insurance
a
S. several hundreds of miles
are
life
shaped swath of land embracing 1,800,000
Development Continues
Canada it's the other way
Com¬
region with affiliated companies. These
companies with
Topical comment
Manufacturers which advanced
in four months.
You
and coming railroad country.
of rail track
was
in
Consolidated
dozens of others will be
share
bit geological and talking about
up
an
increased
a
Whereas in the U.
Canada is
and
hunk
ket rise in recent months.
Railroad
income,
Pre Cambrian Shield.
This preferred
spectacular, but
past
going
Ltd. participating preferred
exchange for producer stock.
points
two.
or
exchange of shares, in particular by receiving
in
Nickel
posted big gains in insurance in
premium
Then let's
properties have been mainly acquired by
Canadian Petrofina,
the
the
are
clients for the future.
Gas.
&
in
Hollinger
the whole
Manufacturers,
growth is giving these underwriters
a
Ltd.,
Sun,
like
Great Western have
performer
150
by acquiring controlling interests in West¬
Leaseholds,
ern
These
Life,
believers
refinery outside Montreal,
very extensive retail chain of gas
service stations and, within the year, has taken
great strides toward supplying its demands for
capital, has
acquired a
International
Noranda, and Ventures, Ltd., which spread eagle
prices in the market. Perhaps the most spectacu¬
McColl-Frontenac
nies,
companies
months all
force,
spot among integrated compa¬
one
stock
Canada
carrying larger barrelage each
month; and the refining and distribution tech¬
niques are keeping pace. Imperial Oil is still in
pipelines
companies to choose from—•
uranium;
the biggest in the world; Steep Rock Iron
gold;
The life insurance
fine
a
wonderful
some
pany,
Company Shares in Demand
should
million dollars
these vast remnants
areas,
have
Algom in
companies, like their coun¬
terparts in the U. S., have been zooming. The
a
these
comprising the Pre Cambrian Shield,
Mines; Kerr-Addison and Giant Yellowknife for
Life
steadily toward self sufficiency.
And while we're on the subject
a
in
of erosion
at 36.
ness
north of the Gulf of St. Lawrence.
Investors
Consolidated
—
imports in the East. The rapid rise in production
of both of these petroleum items is working
jot down
Thursday, September 29,1955
wonderful iron mines at Labrador, and more cop¬
Mining & Smelting Co.,
steamships, air lines, hotels, plus over 12 mil¬
lion acres of present and potential oil land—
that some analysts have figured you are paying
only $8 a share for the railroad end of the busi¬
visitor north of the St.
Lawrence today would swiftly perceive.
There
is still, of course, a vast and increasing output
of basic resources: oil, but still only half as much
as Canada uses; natural gas, but still with heavy
as
.
.
Industrial, Mineral and Financial Growth
limited notion of the Canadian economy
since
.
on
world
with
four
big mines
Company is expected to
in
Eastern
earn
around
its 1,800,000 shares in 1955.
.
*
Aluminium, Ltd. with its tunneled hydroelec¬
at
tric water power
Northeast, the
installation at Kitimat is
pro¬
ducing the lowest cost aluminum in the world;
Coast-to-Coast
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Toronto,
Exchanges
Montreal
Winnipeg
Montreal
Vancouver
30 Broad
Street, New York 4
Telephone: HAnover 2-9250
Teletypes: NY 1-1979 NY 1-3975
Halifax
COAST
TO.COAST
WIRE
SERVICE
Volume
182
Number 5468
.
The Commercial and Financial Chronicle
.
.
for large capacity expansion as
Considering the diversity of new
uses for aluminum
being thought up each year,
a
vast and efficient producer, like Aluminium
Ltd. has surely a bright future. Its common has
been appearing on about every top drawer list
of "growth" stocks for the past three years.
is
and
(1291)
line
in
Business Seen
time goes on.
a
Canada in
cover
an
article,
book
a
Survey Committee of the National Association of
even
Not the least attractive is the Ca¬
debt
position:
reduction
balanced budget,
a
during the postwar
capital gains tax, and
no
across-the-board
reduction
sonal and excise taxes.
that we'll remember
April 5,
on
of
Although none indicated that
prices generally were lower, sev¬
That's the sort of
next March
come
per¬
indicates
■there
in
chasing
dian
economic
there
are
scene,
stock
seven
be
not
may
aware
exchanges in Canada
Toronto
famous
for
775,000,000
example,
for
volume
the
of
its
shares trading in
has
1954, for
clearing value of $1,349,697,159.
Stock
(also
Exchange
tion
total
•their
a
Of
and
This is
Dealers'
the
Canada;
modifications
to
factor
of
some
be
can
eries,
which
reported
were
-
several
items
said
that
it
change in the in¬
in
September.
significant number, 23%,
.
flection of those purchasing exec¬
utives who have liberalized
time
buying
greater
even
policy.
demand
The
lead-
the
goods,
The
employment
September
reflects
picture for
general
optimism. Although 60% reported
employment
the
same
as
last
month,
many
the
added
comments
81%
are
on
materials,
71%
purchases
and
for
is
on
On
in
MRO
a
on
this
range.
supplies
continue to
hand-to-mouth to
to extend this to a 90-day ln-
larval,
Sage Co. Partner
Robert
Muller
H.
membership in
will
the
acquire
New
be
admitted
Sage
&
Co.,
York
City,
York
Stock
to
1
partnership
Wall
members
Street,
much of Canada's
years,
em¬
excep¬
IN CANADA
ahead.
Prices
Continued
on
prices, which was reported last
month, was repeated this month
by 86% of the Business Survey
expanpage
20
Committee members.
Not
one
felt
Incorporated 1932
Calvin Bullock, Ltd.
Templeton Growth Fund of Canada, Ltd.
A management-type
to
provide
a means
in the securities of
side the United
investment
company
507 Place D'Armes
Montreal
organised in Canada in 1954
by which residents of the United States
companies deriving their income from
may
invest
sources out¬
States, particularly Canada, and obtain certain tax
IN
THE UNITED STATES
benefits under the laws of Canada.
The Fund's investment
soundness and
the
policy is founded
long-term growth
development of the
vast
prospects
natural
on
its belief in-the present
of Canadian industry and
resources
of Canada.
White, Weld & Co.
40 Wall Street, New
York 5
Incorporated 1952
Boston
.
Los Angeles
Philadelphia
Chicago
San Francisco
Hagerstown
London
Minneapolis
New Haven
Winchester
Amsterdam
Calvin Bullock
One Wall Street
'
in
New-
of the New-
Exchange.
The marked general increase in
During recent
York
Stock Exchange and on Oct. 6 will
,
Commodity
and
keep
.
were
scheduling purchases
requirements only.
The re¬
maining
24%
were
admittedly
reaching for scarce items to cover
against unforeseen contingencies
and Montreal.
pro¬
capital
they
located in Toronto
at
60-day basis, with only 26% will-
a
■
materials.
However,
might seem justified
high production period.
Employment
lead time
necessary
duction
than
a
available
are
the best price.
factors dng
than
supply
and high consumer spending are
still
the
predominant
ones
in
keeping inventories at a lower
level
that materials needed for
this
for
with
last
The reports show that 48% feel
that the 90-day and over range is
intentional effort on^their
part to reduce them. The 29% who
report inventories higher is a re¬
of
sure
production
special
a
in
buying policy" to protect against
price increases and longer deliv¬
And, yet, in
question on
month, 76% of
those wbo answered indicated that
that
being governed by Se¬
Traders Associations
"minor
again in September.
over-the-
of
1
in buying policy that was evident
in the August reports shows'.up
available.
Association
the interdealer activities
curity
is
Buying Policy
The
The slightly-extended lead time
broad di¬
machinery,
importance
placement
in
Inventories
slightly
over
last
would increase
than
tionally good.
largely provided by members of the In¬
vestment
more
answer
particular
order posi¬
better than last
new
supply
ployment
enterprises.
counter,
month
as
many
stocks
Little
versity of, for the most part, shares of smaller
local
this
high as
August. And
commodities.
but
employ¬
this month
lower
any
further if they could get materials.
In addition, the Stock
provide listed markets in
in
or
strengthened
Exchanges in Calgary, Vancouver, Winnipeg and
Edmonton
to
exceeds
month
living
index
rise in durable
goods prices.
a
status
a
in such
basic
roughly the equivalent of the American Stock
Exchange, in New York.
85%,
than
equal
still
The Cana¬
is
.
Although commodity prices are
very high, it does not seem to be
deterring any buying, as demand
—
Montreal)
in
^
month.
Equally fabu¬
lous, is the Montreal Stock Exchange.
dian
a
„
Chester F. Ogden
92% report their
become
transactions
„L
record
higher
or
representative corporate issues. The
Exchange,
re¬
;93% report production
security trading and the recording of sales, in
thousands of
of
-
out any
high
month's
for
cost
report inventories lower but with¬
plateau throughout the balance of
1955 and into 1956.
Topping last
pro¬
viding active markets, and most modern facilities
Again,
its
present
that
current
There is little
can
on
was
committee
that
be
the
ventory
anything
gain
indicated
agricultural com¬
modity prices, which may serve to
on
in
Inventories
that
other than
in the Cana¬
au courant
the
high level."
the
month, continue into the Septem¬
ber reports of purchasing execu¬
tives.
No panic, just a desire to
consumer
exec¬
o
commented
weaknesses
the
utives
d
same.
little
business
completely
eral
minds of pur¬
Extensive Market Facilities
Those not
maining the
down, in spite of
that
is
'doubt
thing
15.
of
hold
Edison
Company, De¬
troit, Mich.,
years;
corporation,
same
6%
last, and they generally had
plausible explanation which was
presented.
that prices were any lower, leaving only 14% who see prices re-
troit
and
1955 an
the
a
mittee, whose Chairman is Ches¬
ter F. Ogden,
Manager
of
Purchases, De¬
or
-
fiscal
"at
Only
than
A
composite opinion of purchasing agents who comprise the
N. A. P. A. Business Survey Com-
library. We've just set down some early autumn
that may interest and attract financially
nadian
like
ment
Purchasing Agents reveals that 93% of purchasing executives
report production higher in September than in August.
notes
minded folks.
High Plateau
on
members
Business
~
We can't
Holding
19
New York
20
LA
Reeves
golf
four-man
team
firms
securities
tusrol
Tournament
H.
L.
S.
Potter, Jr.,
Club,
—
asso¬
the
Harding Co. Formed
Dillon,
score of
tourna¬
314,
was
ment
winning
in
out
over
a
HOUSTON,
Co.
a
score
Co.
the
low
gross
Wood, Struthers & Co.
individual
with
low
net
trophy
Tripp
Oliver
B.
and
T.
Stitz-
K.
FedCorporation,
t
e
Securities
d
perpetual
e r a
Mr.
Louisiana
play as a memorial to
Hayden, founder of the firm.
Bank
National
Bldg.
Class
Golf
for
45
over
low
Jerry
Inc., New
gross,
Co.,
&
low
B—1st
gross,
Adams
&
Officers
the
Bond
Club
the
annual
sion
of
Exchange
of
^investors'
itituti#1
Association
the
firms,
with
extensive
assure
Whether
mines
or
•1
'
for
ex¬
they strive
economy.
buying and
prompt and efficient execution
is
nature,
bear
are
no
horses.
you
to
land-locked salmon,
or
in each
category
in
anyone
the ground that only
on
exploratory,
or
indigenous there.
more
lead
insurance companies, Ford
from Canada
investment
'
Hooker & Fay Add
or
And last of all should
tops.
of
securities
score
interests
varied
have to offer
they
turn away
Stock
your
oils, banks
71.
of ins
facilities
waterfalls, gold
or
Canada
Divi¬
a
provided funds for the capital
as
to
new
Long-Term Consecutive Cash Dividend Payers
what
of
quickly
In dollars, the majority of
of Canadian investment orders.
golf
fall
have been dis¬
gone
selling, and the maintenance of orderly trading
Minker, Bartow, Leeds
won
issue,
cases,
with the constantly growing
up
these
markets,
are
cars
tournament of the Cashiers'
objectives
ijic
meeting
Co.,
keep
All
Golf Tourney
&
most
pansion of established companies,
to
pre¬
shares, debentures with
each
for
in
securities have
Wins Cashiers'
errI
and,
premium prices.
net, Rudolph Deetjen,
Deetjen & Co., New
of
dollars
of
tributed
Thompson, Drexel & Co.,
President; Andrew Spring, Outwater & Wells, Jersey City, VicePresident; John Ryan, Ryan, Hanauer
&
Co., Newark, Secretary;
smtnble f
and
huge in relation to the country's
Philip
Hinckley,
Glenn
Andrew
■airitieS;
placement,
underwriting,
purchase warrants, running into the mil¬
lions
Graham, Stone & Webster Securi¬
lUnclosest
,.
possibU in
many
into the hands
trading operations might well
convertible
and
share
Class C—1st low Gross, Howard
low
considered
ferred
J. William Roos, MacBride, Miller
& Co., Newark, Treasurer.
, •
way
market;
of
population. Mortgage and convertible bonds,
79.
Emanuel,
York, 73.
years
of
scope
Contest
1st low net, Harry Schaub, Sr.,
Harry P. Schaub, Inc., Newark, 72.
1st
Policy
proportion
a
undoubtedly found their
The
ties Corporation, New York, 94.
Our Steadfast
subsequently,
of investors outside Canada's boundaries.
Jim
Co.,
net, Frank Cole, F. R.
Co., Newark, 68.
Newark,
lein have joined the staff of
have
low
Arnheiter,
mond
by the partners of Hay¬
& Co. and is kept in
den, Stone
although,
City, 78.
1st
ROUGE, La.—Ivan W.
the
of
A—1st
Malone,
was
approxi¬
written and distributed in the domestic
as
be
Class
Tripp,
B. Gray, George W.
Claude D. Martin, Ray¬
through the issuance of
It is estimated that
mately 80 % of such securities have been under¬
^
Fisk, Jr., J.
The Charles Hayden
donated
were:
Cole &
BATON
financed
a
mystery.
a
Day
Winners
to
business.
principal
securities
a
been
bonds and shares.
over-the-counter
(Special to The Financial Chronicle)
winner
score
sion has
dinner
the
Thursday, September 29,1955
.
Inc.
With Federated Sees.
the
was
After
Chairman was
Musson, B. J. Van Ingen &
York
score
70.
a
in
&
the firm.
of
honors with 77 and Phillip Bartow
of
golf.
of
followed
twelve of the members dressed
Field
offices
Boulevard
Montrose
3217
with
Edward E. Harding is a
of 315.
won
Texas—Harding
formed
been
engage
Ernest Grauer of Hayden, Stone
&
has
at
team
Hayden, Stone & Co. which
from
had
second
day
dinner
identity must remain
McAleenan.
representing
Read & Co. Inc., with a
beef-steak
A
.
19
page
Thursday
on
Carolina
National bathing
South
beauties
of
the
Gay
Bank
Building, as a registered Nineties and a Miss New Jersey
Bond
Club
was
representative.
chosen, whose
Grover O'Neill,
team
J.,
N.
Sept. 22, for members and guests.
William
Wallace, Jr. has become
Deal,
.
AND FINANCIAL GROWTH
Inc.,
Jr., Donald Scanlon and Kenneth
A
out¬
ing of the Bond Club of New Jer¬
sey was held at the Deal Country
McCarley Co.
from
Chronicle
CANADA'S INDUSTRIAL, MINERAL
Outing
"Dutch Treat"
The annual
of
ciated with McCarley & Company,
Compiling a net score of 310, the
winning team was composed of
Annual
opened a
Ivanhoe
direction
the
GREENVILLE, S. C.
at the BalGolf Club, Springfield, N. J.
Trophy
7815
at
under
With
Hayden Memorial
Charles
have
Co.
Daniel
—
N. Purdy.
Harry
27th
the
win
to
office
Avenue
repre¬
senting Fahnestock & Co. beat out
teams
from 28 other New York
annual
&
branch
Hayden Golf Tourney
Calif.
JOLLA,
Continued
Bond Club of N. J.
New Reeves Branch
Fahneslock Co. Wins
A
akd Financial
The Commercial
(1292)
highly speculative
The
penny
shares
relationship to leading Canadian
issues, than rabbits to thoroughbred
Just
look
at
the
list
which
follows;
an
(Special to The Financial Chronicle)
WALNUT
•
'
0
CREEK,
Ralston Bullitt is
now
amazing and complete list of mature and in
Calif.—
cases
with Hooker
&
some
magnificent companies in Canada that have
Fay, 1393 Main Street. He was
formerly with H. L. Jamieson Co.,
Inc.
Financial institutions
invited
are
avail themselves of
to
Salomon Bros.
Dealers and Underwriters
The ultimate test of good stocks is the
services.
Hutzler
&
Members New York Stock
Philadelphia
San Francisco
127 years.
of Higli-Grade Securities
Outstanding Brokerage Service in
Exchange
SIXTY WALL STREET, NEW YORK 5, N.
Boston
our
paid dividends without hiatus for from five to
Y.
Cleveland
Dallas
Chicago
West Palm Beach
CANADIAN
*
SECURITIES
Keystone Fund
ofC
A
ana
We have maintained offices in Canada for
and
da, Ltd.
and certain
TAX
many years
exchanges. A direct wire
v
to
our
enables
us
to
Canadian offices
GROWTH
Consult
and
principal markets
supply the latest available information and
quotations and to execute
under Canadian Lavs
BENEFITS
members of all leading
service
fully managed Canadian Investment Company
seeking long-term CAPITAL
are
us
your
orders promptly.
regarding securities of companies
in both the United States and Canada
Tlie Key stone
50
Congress /Street, Boston
Please send
of
Company of Boston
me
THOMSON & MSKINNON
9, JVLassacluisetts
prospectus describing the
Keystone Fund-
BROKERS IN SECURITIES AND COMMODITIES
Canada, Ltd.
d
II Wall
Name.....
Address
City
42
'.
1 I
State
•
*
.
'
'
*
i
*
*
♦*
r
»
-it',
.
*
M
.
,
t
Street, New York
offices in the United States and Canada
Members New York Stock Exchange and other principal security and
commodity exchanges
Volume
182
Number 5468
sustained
Canada
.
.
earning
can
The Commercial and Financial Chronicle
.
and
pay
of
payment
lifelong
you
dividends.
wonderful
and
(1293)
Study of National Bank
Deposits and Assets
I
loans
the
LISTED
of
assets
amounted
national
$108
to
banks
billion,
or
$200 million below April figure.
Deposits
CANADIAN
representing
increase of $271
an
million.
The
total
banks
Common Stocks
of
assets
June 30, 1955
on
national
amounted
to
$108,000,000,000, it was an¬
nounced today by Comptroller of
the
Currency
On Which
Ray
M.
turns
the
DIVIDENDS
Gid¬
The
ney.
/
CASH
$98.9 billion,
at
were
banks
$15,800,000,000 were up
$800,000,000 since April, and loans
on
real estate of $10,400,000,000
were
up $372,000,000.
Retail au¬
tomobile
instalments
loans
stocks
tions
and
dealers
other
loans
the
10 to 127 Years
Cash
sions.
The
sets
as-
and
were
below
Including
No. Con-
Extras for
Quota-
Based
1
secutive
12 Mos. to
tion
June 30,
June 30,
1955 ♦
1955
—
Agnew-Surpass Shoe
Canadian $ *
in
bands
17
distributes
&
retail
tions
2.00
12
0.40
15
0.15
10
2.00
45%
4.4
16
0.50
13.00
3.8
11
0.60
13y8
4.6
18
1.25
43
2.9
5.2
shoes
in
104
1.9
ingot in the
Operates
oil
Colombia,
s.
pipe
A.
line
$417,000,000
a
Oil
|
exploration & development
5.70
2.6
in
Alberta
Anglo-Canadian Pulp and
Paper Mills, Ltd.
Newprint and allied products
Anglo-Huronian Ltd.
Holding
operating
&
interests
in
Can.
co.—chiefly
gold
Anglo-Newfoundland
mining
reduction
Newprint
mining
allied
&
products;
<
Quotations
price
June
♦
Add
represent June
prior
also
to
that date.
1955
30,
Bid
sale
and
Canadian
current
decrease
a
The
capital stock of the
prices or the last sale
quotations are as of
ings
Exchange Rate.
were
and
Continued
$3,700,000,000, undivided
$1,300,000,000 and capital
profits
reserves
$300,000,000, or a total of $5,300,000,000. Total capital accounts of
$7,700,000,000, which were 7.82%
obliga¬
of total
more
(including $2,755,-
were
deposits,
than
$100,000,000
were
in
April when they
7.75% of total deposits.
<?/
States
A noivdiversified mutual fund
investing in Canada and
overseas.
on request
Government
Carl M. Loeb, Rhoades & Co.
Members T^ew
Tor\ Stoc\ Exchange and other
Leading Stoc\ and Commodity Exchanges
on
page
22
$13,000,000 and certified
42
NEW YORK 5, N.
WALL STREET
cashiers'
checks,
etc.,
were
Private Wire
services of this firm include complete
$1,500,000,000.
General Fund
brokerage facilities for Canadian
dealers and brokers interested in securities traded in the United States.
(1954) LIMITED
A mutual investment company
We maintain
a
direct
private wire to
in
Canada,
resources
James Richardson & Sons
and
#
to
tax
'
Cs
United States dealers and brokers interested in Canadian
and industries of Canada by means
of Canadian stocks
(2) reinvesting all net earnings at
cost.
Prospectus may be
obtained from
authorized investment dealers or
vanck. sam»i:ks a
Devonshire
111
Boston 9,
new
Members of the
&
Dominick
york
Please send
^
me
company
Street
Mass.
los angeles
chicago
without
obligation prospectus on
Canada General Fund
New York Stock Exchange
Members of the
(1954) Ltd.
Name...
Toronto Stock Exchange
Address.
14
wall
NEW YORK
street
*.*
.
r
low
,
secu¬
rities similar facilities in Canada via this wire.
Dominick
of
(1) investments in the
of diversified holdings
/-V
incorporated
seeking long-term growth
principal through:
and offer
Y.
System to Branch Offices, Correspondents and
their connections in 90 Cities throughout the United States
Canada
Th e
banks
June
30, 1955 was $2,400,000,000, including nearly $4,000,000
of preferred stock.
Surplus was
on
deposits
United
■
4
*
t
k
t
?
5, NEW YORK
»
•
\
a
f
*
e
t
City
of
$100,000,000 since April.
in
Report
of
of $10,$23,000,-
ask
1955.
30,
showed
of
in
$3,100,000,000 increased $171,000,000 since April; deposits of
States and political subdivisions
of $7,300,000,000 increased $461,000,000, and deposits
of banks
amounted to $8,300,000,000, a de¬
crease of $184,000,000.
Postal sav¬
Mining & milling of asbestos fibre
♦
total
of
interests
Asbestos Corp., Ltd
a
the Federal
were
of
reserve
banks
other banks.
and
30
the
Devel-
opment Co., Ltd. "Ord."__
Reserve
of collection)
process
000,000,
June 30, 1955 aggregated
of the banks on
$98,900,000,000, an
increase
of
$271,000,000
since
April. Included in the recent de¬
posit figures were demand depos¬
its
of
individuals, partnerships,
and corporations of $53,700,000,000, which decreased $600,000,000,
and time deposits of individuals
partnerships, and corporations of
nearly $25,000,000,000, which in¬
creased $336,000,000.
Deposits of
June
5.7
in
Anglo-Canadian Oil Co., Ltd.
$1,400,000,000,
previous
The
world
crude
of
Federal
for the
Reserve
Largest producer of aluminum
Andian National Corp., Ltd..
reduc¬
outgrowth
April 11, 1955, the date
call, the major
decrease centering
on
reason
chain
Ltd.
$1,800,-
This
Ray M. Gidney
funds borrowed from
Aluminium
on
$34,800,000,000
re¬
by the
the
of
0.40
7%
t
banks
decreased
April.
natural
a
600,000,000,
1954.
the
were
4,759 active
—
22
through
ported
Stores,
Ltd.
Makes
am o u n
Paymts. to
June 30,
1955
of
United States Government
the
w
o
on
Years Cash
Divs. Paid
the
amountre-
Approx.
% Yield
Cash Divs.
in June,
34.69
Investments
$200,0 0 0,0 0 0
$7,000,0uo,0u0,
$11,000,000,000, and balances with
other banks (including cash items
June 30,
1955, was 36.59 in
comparison with 34.90 in April
posses¬
was
with
on
and
of $9,200,obliga¬
political sub¬
included
and
increased loan portfolios, as noted
in the paragraph next above.
in
loans and discounts to total assets
States
of
since
000,000
tion
individuals
to
States
$44,000,000,000
securities, and other loans for the
purpose of purchasing or carrying
stocks, bonds, and other securities
increased $107,000,000 to $1,578,000,000.
Other loans, including
loans to farmers, loans to banks,
and
of
less than in April.
Total securities held amounting to
amounting to $1,increased $46,000,000.
brokers
to
de¬
since
$100,000,000
loans
165,000,000
a
securities
which
divisions
in¬
$267,000,000 to $2,800,000,000, and other types of retail in¬
Loans
obligations),
$1,700,000,000
and
000,000,
creased
stalment
of
April.
These investments were
32% of total assets. Other bonds,
of
payment loans)
ac¬
in
United
of
stalment
tive national
Have Been Paid From
000 guaranteed
crease
were
(repair and modernization and in¬
cash loans, and singleamounted to $8,300,000,000, an increase of 2%
since April. The percentage of net
re¬
covered
4,751
June
on
$39,500,000,000, an
$1,800,000,000 since
Commercial and industrial
April.
Comptroller of the Currency Ray
M. Gidney reports, as of June 30,
CONSECUTIVE
1955
increase
dividends.
TABLE
Net loans and discounts
30,
21
State.
CFC
22
The Commercial and Financial Chronicle
(1294)
Continued
pafje
from
declined,
6
By
A Review o! Credit
faced with
are
These instruments of
have all
been
credit
utilized
in
supplied
far has
thus
in
ways
which
to
been
reserves
nomic
the
tive of the Federal Reserve. Mem¬
ber banks
can
also obtain
at their own initiative
Federal
bank
Reserve
positions.
reserve
market
and
of
the
open
restrictive.
more
come
debt,
do
an
tends
to restrict
expansion.
when
Since
remain
to
in
increase in member bank
borrowing
credit
like
not
a
In
addition,
restrictive
more
bank
credit
policy is being followed, the Fed¬
eral Reserve Banks generally
their
discount
borrowing
expensive.
more
therefore evident
eral Reserve
excess
policy
reserves
encouraging
sion.
At
It
that when
Fed¬
member
eases,
declines
and
increase, thus
may
bank
is
credit
expan¬
times reductions
such
demand
from
the
in
customary.
credit
directed
At
was
increase in
an
credit
removal
stemming
of
selective
credit controls, optimistic business
expectations,
growth
in
inven¬
tories, and a Federal deficit. Since
the
economy
was
already fully
employed, the extent to which
production
could
increase
was
limited, and it was necessary to
take steps to restrict credit expan¬
sion. This was done largely by
restricting Federal Reserve pur¬
chases
on
balance
by
gold
were
nearly
more
the
open
this period
over
than offset
and
currency
outflows.
bank
discounts
exceeded
billion
$1
in
securities
of
Market. Purchases
the
on
average
month
in
from
July,
1952 through April, 1953. In Janu¬
ary,
1953 Federal Reserve Bank
every
discount
1%
Federal Reserve discount rates are
was
for
spring
inflation.
preventing
Member
indebtedness
bank
raise
rates, thus making
as
business
the
rates
raised
were
from
to 2%. Despite the strong de¬
mand
for
credit,
the
rate
of
growth of bank credit and money
Reserve
in
May,
acted
Reserve
the
1954
adidtional
provided
through
reserves
further
securities
As
needs
Reserve
the
in
developed,
made
earlier
After
business
mid-1954
sharply, at
a
By
late
1954
was
to
at net
New York
561/2
3.4
1.20
39
3.1
25
3.20
bl8
17.7
16
0.40
71/2
5.3
0.45
61/2
6.9
75
2.00
49 Vi
4.0
11
0.10
0.40
b7
15
f0.53
8
21
1.20
24%
4.8
46
0.85
29%
2.9
40
&
2.00
491/2
4.0
10
0.40
29
1.80
stable
equipment,
nylon, silk and rayon
all purposes
Bell Telephone Co. of Canada
Most
i
In
telephone
Quebec
important
Ontario
&
Belleterre Quebec
system
Mines, Ltd.
clear
Men's fur
Brazilian
British
felt
and
felt
wool
4.5
utility interests
that
American
Makes bank notes,
stamps,
5.3
6.6
in Brazil
Bank
Note
bonds, revenue
and similar items
British American Oil Co. Ltd.
There
%
hats
Traction, Light and
Co., Ltd. "Ord."—
Power
Diverse
Petroleum
production,
refining,
distribution
credit
British
credit,
Columbia
Telephone
Co. "Ord."
production
Federal
2.20
Quebec gold producer
Second
largest
privately
owned
telephone system in Canada
Reserve
bank reserve positions
tighten somewhat in late 1954
Brock
in
sales
on
1955
the
•
6.7
etc.
Building Products Ltd
second
quarter
Asphalt roofing,
Continued
on
page
flooring
and
44%
4.1
in¬
sulation
♦
of
Since mid-year the Federal
Reserve has permitted bank re-
prices
6
hardware,
supplies,
of
were
in
Ltd. "B".__
supplies,
plumbing
1955.
or
(Stanley)
Laundry
early 1955. Although Federal
securities early
largely seasonal,
bank discounting increased to an
average of almost half a billion
Stocks
Internal
1.90
—
barn
household
threads for
increased
business
The
j
22
Makes
recessions.
consumer
and
'
123
Belding-Corticelli Ltd.
increase in the demand for
employment
'
Federal
circumstances.
short-term
"
\
per year.
it
3.0
47
etc.
pumps,
policy of active ease was no
longer appropriate for prevailing
an
1.40
33
Ltd
Bros.
equipment,
were
a
economic
____
SCOTIA..
NOVA
Manufactures
seasonably adjusted
rate of about 5%
127
7.4
2.15
world
the
throughout
Beatty
available
it
0.16
Ltd
Barber-Ellis of Canada, Ltd.Stationery & printers' supplies
to
by purchasing securities.
The
money
supply
increased
slightly from mid-1953 to mid1954, in contrast with declines in
some
Mines
producer
74
market.
the
reserves
gold
Operates 247 branches in Canada
reduc¬
open
Gold
Banque Canadienne
anticipation
of
seasonal
needs,
they were partly offset by sales
of
15
,5.5
O.8OV2 14%
offices
tions in bank requirements. Since
these were provided
in part in
dollars
and
2
18
—
Operates
450
branches &
subthroughout the world
Federal
from
—
retail business
Operates 602 branches and agen¬
cies
in the period from Febru¬
through May. In the summer
ary
of
reduced
Canadian $ *
general hardware
Ontario
BANK OF
%
Reserve
External
*
Banks.
were
June 30,
1955
Co., Ltd.,
BANK OF MONTREAL
by the Federal Reserve. Discount
1 Vz
In
v
further
rates
H.,."B"_
Aunor
Discounting de¬
early
in
1954
despite seasonal sales of securities
clined
and
Exchanges
J.
Large wholesale &
v
part to meet seasonal needs, they
permitted a reduction in member
bank indebtedness to
12 Mos. to
permitted
Investment Securities
Utility, Corporate
Ashdown Hardware
Quota-
Extras for
—
thus provided were used in
serves
increased.
Orders executed
Divs. Paid
ket beginning.in May, 1953, and in
July
additional
reserves rwere
provided by a reduction in reserve
requirements. Although the re-j
and
Canadian
Years Cash
policy of active ease. It pur¬
chased securities in the open mar¬
and
Government, Municipal,
the
positions, and from
reserve
Approx.
% Y.eld
Based on tion
Paymts. to
June 30, June 30,
1955*
1955
Including
ease
to
MINERAL
Cash Divs.
No. Con-
business
credit, especially
Bonds
21
page
secutive
Beginning
*
Quotations represent June 30, 1955 sale prices or the last sale
price prior to that date.
Bid and ask quotations are as of
June 30, 1955.
Add
current Canadian
t Adjusted
23
for
stock
Exchange Rate.
dividends, splits, distributions,
etc.
b Bid.
Inquiries Invited
A. E. Ames & Co.
Incorporated
New York
Toronto
'
Doston
Affiliates in:
Montreal
Winnipeg
*
Calgary
Vancouver
Laidlaw &
Victoria
Co.
and other Canadian Cities
Founded
1842
London, England
—<^>—
W ood,
Gundy & Co., Inc.
14 Wall
105
Street, New York
West Adams Street,
5
MEMBERS
New York
American
Chicago 3
Stock
Stock
Exchange
Boston Stock Exchange
Exchange
-
-
Canadian
Stock
American
-
-
Bankers Association
Midwest Stock Exchange
New York State Bankers Assn.
Exchange
Investment Bankers Association
affiliated with
Wood, Gundy & Company
-o-
Limited
Established 1905
and
-***-
25 BROAD
Wood, Gundy & Company
STREET, NEW YORK 4, N. Y.
Members of
The Toronto Stock
Exchange
Montreal Stock Exchange
Canadian Stock
Exchange
TORONTO
QUEBEC
HALIFAX
MONTREAL
SAINT
WINNIPEG
JOHN
KITCHENER
OTTAWA
REGINA
Boston, Mass.
•
•
Bloomfield, N. J.
Washington, D. C.
•
Oil
Princeton, N. J.
City, Pa.
•
Montreal, Que.
Toronto, Out.
0
VANCOUVER
HAMILTON
EDMONTON
LONDON, ENG.
LONDON,
CALGARY
ONT,
VICTORIA
29,1955
ANR FINANCIAL GROWTH
a
was
Canadian
Thursday, September
CANADA'S INDUSTRIAL,
late 1953 until late 1954 it pursued
in¬
well
as
Reserve
monetary policy
this time there
actions of the Federal Reserve be¬
banks
Federal
toward
requirement
reserve
credit
moderate
mid-1952 until
1953
and
Discount¬
ing tends to increase when
for
of
short-term
re¬
periods of
demand
From
affect
can
have
from
.
consumer
bfmk
recession.
by borrow¬
ing from their Reserve Banks,
Regulation of the discount mech¬
anism is the third way in which
the
two
period
a
reserves
ap¬
ac¬
rapid ex¬
pansion in business activity and in
absorbed at the initia¬
or
developments
cluded
are
and
Federal
meeting gradual and short-run cent years in response to economic
developments. Since mid-1952 eco¬
reserve needs.
Reference
it
„
and after the middle of 1953
credit.
\
changes in
the
Continued
.
the demand for credit became less
Instruments. o|
Credit Action
tion
1953
active, particularly for
credit
Use of
Jong-run change in their need for
reserves.
By its very nature, this
instrument is not ordinarily suited
to
remained
peared that the existing degree of
restriction was no longer neces-.
Monetary Policy
large and
a
prices
spring of
the
sary,
And
banks
and
stable.
.
Volume 182
Number
The Commercial and Financial Chronicle
5468
Continued from page 22
CANADA'S INDUSTRIAL, MINERAL
AND FINANCIAL
Approx.
Including
Extras for
June
Divs. Paid
Steel
Steel
Co.,
19
Ltd.__
rolling mill & related
ladies'
June 30,
June 30,
1955#
1955
Canadian $ *
L50
.
And
—
5.3
281/8
have
14
0.10
the
3.3
3
full-fashioned
Makes
Linen
13
Mills, Ltd.__
widp
variety
products
cotton
linen
of
reached
0.80
a
5.5
14 V2
raised from
&
separate
Board
Calgary & Edmonton Corp.,
Ltd.
19
0.10
25
1.00
13
:
_
Leas?s oil & gas
Alberta
•
levels,
credit
has
but
con-
0.10
171/s
221/4
by three
addition, the
In
Governors
has
raised
&
Dominion
4.5
Sugar
Co., Ltd.
Cane &
beet
Bread
and
Co., Ltd
cake
wholesaler
3.50
2.9
U.
credit
1.20
Canada Life Assur. Co
be of some interest
to compare our credit and monetary policies with those of some
101
3.25
170
1.9
other
One of the largest Canadian com¬
nations.
there
Needless
■
panies underwriting
and sickness
life, accident
tween
other
country
Listed Companies Which Have Paid Consecutive
try
Starting
on
to
other
Page 35
countries,
to
Wide
Malt
9
5.5
28
3.CO
74
4.1
27
0.60
12%
4.7
variety of tools & machines
Malting Co.,
for
the
Ltd
brewing &
distilling
industries
You
Canada Northern Power
Corp., Ltd.
Through
mining
subs,
Northern
Corp.
21
1.50
100
2.70
351/2
86
than
4.2
_
__
/
_
3.1
first mortgages security,
issues debentures, accepts deposits
Canada Steamship Lines, Ltd.
Freight
other
and
passenger
0.621/2
2.1
29%
vessels:
interests
13
include
diverse
Canada Vinegars Ltd.
31
_
1.00
5.4
181/2
Canada
Wire
and
Cable
Co.
"B'?
Ltd.
17
Copper and steel
wires
and
out
branches
711
the
4.3
€9
88
1.20
431%
2.8
11
1.371/2
28%
4.8
23
1.75
34
5.1
through¬
Breweries Ltd
Holding
co.—brewing
milling interests
and
grain
Bronze
Holding
bronze
co.
—
Co., Ltd.__
subsidiaries
bearings,
bushings,
the
and
castings
fruits,
vegetables,
16
2.00
5.6
351/2
individual
omy
meats,
11
__
highway
rolling
of
1.00
all)
3.5
28%
These
stock
Quotations
price
June
s
a
Add
represent
prior
30,
to
June
that
30.
1955
Bid
date.
sale
and
prices
ask
the
or
quotations
last
are
as
producer and
politically
practical, both
more
economically.
and
4
Exchange Rate,
Fears
Asked.
initial
of
a
on
page
24
mand
a
raw
All under the
Municipal
—
on
Burns Bros. &
Dealers in
Tel.:
DIgby 4-3870
any
Corporation
Send
The
Investment
Association
TORONTO
of
Dealers'
Canada
MONTREAL
on
page
®
Companies
Mining District
dynamic management
Yellowknife Mines Ltd.
progress
reports
H. J. COONEY & CO.
25
Street, New York 4, N. Y.
Beaver
BOwling
Green 9-1533
CANADIAN
MARKET LETTER
when
in
the
Korea
new
world
To assist the growing
vestors
interested
in
number of dealers and in¬
Canadian
stocks,
we
now
impetus.
conflagra¬
materials
and
a
fortnightly Canadian Market Letter,
our
Toronto office discusses developments
publish
ln it,
in the market there and furnishes current
on
one
to
your
news
industrial, mining and other companies.
of
the
few
American„members
of the
Exchange, and with direct wire
give prompt, efficient attention
can
we
Canadian transactions. Write
phone
or
of Canadian Market Letter C-38.
Canadian Exchange
BACIIK & CO.
MEMBERS
NEW
lltDlND
YORK
STOCK
AMERICAN
AND
TORONTO
COMMODITY
AND
OTHER
EXCHANGES
Securities
36 Wall Street,
TWX: NY 1-1467
Affiliated with:
Members:
Continued
1955
'333
Burns Bros. &
Company, Ltd.
Founded
1879
SEVENTH
All
our
New York 5
BI.DG.
•
MU
AVENUE
offices
are open
6 5900
•
Digby 4-3600
(Open
LAckawanna
Saturday
evenings)
4-7520
mornings
Members:
The Toronto Stock Exchange
OTTAWA
WINNIPEG
Hear
by
production
MINES LIMITED
for
for your copy
37 Wall Street, New York 5
Denton, Ltd.
of
Rayrock Mines Limited
TARBELL
CHKYSLEK
Burns Bros. &
half
industrial
Radiore Uranium Mines Limited
Denton, Inc.
Canadian
first
And
55%
Uranium
same
Toronto Stock
External and Internal
Stock Orders Executed
,
the
In
Consolidated Discovery
facilities,
—
?iff' 0«5UftirlioS"ilnCrSa+K
of
UNUSUAL OPPORTUNITY FOR CAPITAL GAINS
As
Canadian Bonds
Provincial
n
j
end
in the rich Yellowknife
located
items
Government
,ai?
^ }*?
anf .^0llar 0
had
pressures
S-
°fn^es£er+nJEur(JPean c°up.1tnes (in
States.
hostilities
new
for
n v
1T1 O V e—
econ¬
tion, exaggerating the rise in de¬
Continued
m
lapid ln the case o£ the European
countries: the volume of exports
Progressive
Gold and
con¬
inflation
gave
Canadian
tary policies
than
primarily by:
foreign assistance,
(though by no means
of
mnHitv
COlTllTIOdity
\
uses
rather
of
1955.
current
producer
those
to
disappeared
outbreak
sale
e!
ti
,
atlOnal
.,
goods
from the United
largely
♦
the
in
e
War,
avoided
it
'
t
„
believed to be most urgent.
was
most
Canadian Car & Foundry Co.,
Ltd. "Ord."
of
authorities,
large-scale
and
World
The breakdown of the world
etc.
Rail
since
ever
resources
the
sumer,
Canadian Canners Ltd
Cans
that
Second
consumer
that
make
ro
Hromatioollv
in
minimum
available
Canadian
phys
l^^
T]lQ
imports,
either out of their reserves or by
increased exports. At that time,
anti-inflationary monetary poli-1
cies
were
little
used.
Instead,;
reliance was placed on direct con¬
trols, which aimed at channelling
world
Canadian
bare
hv
vear^
..^ ai,s b? 13f ^
,
4r'®*
from
and
ropes
CANADIAN BANK OF COM.
Operates
3.00
the
*•
f
these
re-
the
restoration of prewar standards of.
Vinegar and apple products
On
V™:.™eJ0™ag>.7/nanded
at re^^
91<y
permit
living; and the inability of coun¬
tries
with
reduced
foreign ex¬
change
holdings
and
impaired
productive capacities to pay for
hotels
1Q14
nurrhawl
not
=
to
deflationary pressures.
In the early postwar
period, these
pressures
originated
primarily
from. the need for rapid recon¬
struction of war damaged plant
and equipment and depleted in¬
ventories; the desire for a rapid
packinghouse "prods.
__
on
the
tion
wac
orfce Sf e^onorr,& eta
he c™t?a?v world n?n-
the
be signi¬
the free
foreign countries have been
suffering from inflationary rather
Canada Permanent Mortgage
Lends
know
of
years;
to
most-
Quebec
Canada Packers Ltd. "B"____
Full line of
end
important
serves
in
area
especially
1Q59 and
stabilization
at
restoration of
economic flexibility in both domestic and international transactions. These changes made moneand
conditions.
seems to
over
earlier
11°nripp^r^nifU
f.antiv hpfwppn
proceeded far enough to raise production above the prewar level,
foreign experi¬
own
in
so
we
world,
Europe, there
has been a growing reliance on
general credit and monetary pol¬
icy. Permit me, therefore, briefly
to review this development.
and
0.50
soon
was
done:
we
experiences
or
our
Nevertheless, it
16
Therefore,
our
ficant that all
Machinery Corp. Ltd.
our
extremely cautious if
apply
ences
and
in economic and finan¬
as
conditions.
must be
Dividends From 5 to 10 Years Appear in the
countries
institutional structures
in
well
as
cial
Canada
say
be-
*"
insurance
Second Table
to
differences
often
are
movement
from
It may now
4.2
28%
many
By that time, however, recovery
the
war
had
everywhere
Foreign
Monetary Policies
11
in
excesses
sumed.
Compared to
and
Holding & operating company—
machinery & equipment interests
Canada
stock
for
trading.
S.
retailer
Canada Iron Foundries, Ltd._
in the volume as well as in
the price of raw material exports,
crease
produced similar
upward
of
use
market
refining
sugar
Canada Bread
equipment needed for the war effort of the United Nations, led to
excessive spending in the industrialized countries; the inflow of
an unprecedented amount of foreign exchange, reflecting the in-
underdeveloped countries. When
the crisis passed, some industrialized countries experienced a slight
ronhccinn
hilt in mnct nf tVlPm fhp
recession, but in most of them the
n
Canada
main¬
they were joined by the
Netherlands, the United Kingdom,
cessive
0.6
•
-
l>/2 to 2>/4%
steps.
of
or
equilibrium.
now
margin requirements for purchasing or carrying securities from 50
to 70%
by two separate actions
in
nvflor
1ml
in
order in help nrouont iVm exto
prevent the
drilling rights in
•
record
for
demand
production
and
tinued to grow. Discount rates at
the
Reserve
Banks
have
been
Hosiery
Caldwell
employment
as
in¬
monetary-
Bel¬
gium, Italy, and Germany had al¬
Monetary Policy
positions to tighten further,
serve
.
oper.
Butterfly Hosiery Co., Ltd.__
Makes
.
30,
Paymts. to
major
used
reestablish
financial
ready
Based on
tion
1955
—
Burlington
Quota-
to
tain
% Y.eld
12 Mos. to
Years Cash
A Review of Credit
23
all
countries
policies
Cash Divs.
No. Con¬
1951-52, therefore,
dustrial
GROWTH,
secutive
(1295)
"Today's Business"—W0R 7:15 P.M. weeknighfs
24
U
The Commercial and Financial Chronicle
?
(1296)
Continued
from
investments at
23
page
rates
a
loss. The interest
Continued
from
Government loans to the
on
..
.
Thursday,
23
page
local
A Review of Credit
v
And Monetary
in
Western
Europe
period by 24%—more than twice
fast
as
in the United States.
as
those
with
been
the
Such
bound
build
sooner
or
renewed
up
contrast
later
of
some
and
action.
and
of
credit
of
British
loans;
banks
which
tion
business construc¬
on
increased
and
the
rates
of
corporation taxes; in the field of
monetary policy, it raised the dis¬
count rate, stimulated savings by
commercial
banks
to
restrict
Monetary
Policy
Early this year, the
England raised its dis¬
count rate in two steps from 3 to
measures.
Bank
of
41/2%. This action led to
tionary fiscal as well as monetary
policies. Denmark imposed a na¬
banks,
the closest ties with the monetary
This,
then,
of
is
a
a
general
rise in the interest rate level and
credit
the
the
On
evidence
growth.
There
have
Chemicals
Canadian
matic
been
generally high level of pro¬
and employment, and to
stability of price levels. How¬
ever, the role played by the bank¬
ing system should not be over¬
4.0
0.35
25%
1.4
26
4.00
76
5.3
30
0.52 Vz
24
2.2
12
1.50
33%
4.5
12
0.70
90y4
0.8
2.00
59
3.4
17
0.50
$
—
11
1.00
bll
9.1
72
0.60
27
2.2
21
1.20
50
2.4
11
Cos., Ltd.
refining
1.00
171/2
5.7
14
0.10
7%
1.3
14
1.00
19
0.80
distribution
&
Can. Pac. Ry. Co. "Ord."
"The"
private
railway
system
the
looked.
For
this
of
Automotive accessories,
credit
and monetary policy that enables
the banking system to fulfill its
reason,
a
Canadian
and
electrical
apparatus
First Calif. Branch
and
fornia
office
at
14547
Silk,
silk
Investment
General
Opens
co.
Exchange
Trust
fiduciary
A.
Wines and
Co
—
business
Ltd
juices
Cockshutt Farm Equip. Ltd—
agricultural
equip¬
has
become
—
Operates
elevator
a
8.5
bl2
million bushel grain
Collingwood, Ontario
2
in
Wilfred
Conduits National Co., Ltd.—
associated
Rigid electrical
couplings, etc.
Co., 507 Main Street.
Held,
Terminals, Ltd.
Collingwood
♦
,
member of
Quotations
*
conduits,
represent June
30,
1955 sale
prices or the last sale
prior
quotations
are
30,
b Bid.
Sept. 20.
t Inactive issue, no Exchange trading.
221 Notre Dame Street West,
MONTREAL I
Ottawa
..
Paris
Brussels
L. G. BEAUBIEN § CO. LIMITED
Investment Dealers
Members Investment Dealers' Association of
Canada
MONTREAL
Quebec
Trois-Rivieres
St
Greenshields & Co (N.Y.) Inc
Shawlnlgan Falls
Hyacinthe
Sherbrooke
Specializing in Canadian Government
Provincial, Municipal and Corporate Securities
BANQUE L G. BEAUBIEN
I
Financial operations
64 Wall
Street
between France and Canada
•
I,
rue
•
•
Canadian
Richepance
•
•
Affiliate
Greenshields & Co Inc
PARIS
Business established 1910
•
Branch at St. Pierre
(Territory of the Island, of St.
Pierre and
Miquelon)
Montreal
Ottawa
Quebec
7.6
IO1/2
elbows,
to that date.
Bid and ask
1955.
Add current Canadian Exchange Rate,
price
June
the
American Stock Exchange, passed
away
large insurance
Wines
Chateau-Gai
Manufactures
Louis A. Held
Louis
—
ment
WORCESTER, Mass.
with Gibbs &
cashmere
interests
CARMEL, 111.—William H.
Alarie
and
hosiery
(Snecial to The Financial Chronicle)
R.
wool,
&
Chartered
L. G. BEAUBIEN i CO.
America-
fabrics
Central Canada Invest. Ltd.-
Victory
Boulevard under the management
of A. E. Nichols.
W. H. Hilbert
variety of
Celtic Knitting Co., Ltd
NUYS, Calif.—First Cali¬
Company has
opened
a
branch
large
Celanese Corp. of
Yarns
VAN
Co.,
Westinghouse
Airbrakes
all.
us
Ltd
parts, etc.
Ltd.
economic functions and thus helps
to maintain economic equilibrium,
is of vital interest to
Canada
Canadian Tire Corp.,
Joins Gibbs & Co.
Telephone* PLateau 2171
32
paper1
pulp &
Oil
Petroleum
business from offices at 1131 Mul¬
Exchange
1.28
products
Ingersol-Rand Ltd.
tools,
Canadian
berry Street.
and Canadian Stock
27
Manufactures compressors,! pneu¬
duction
MT.
Members Montreal Stock
0.6
(1954)
allied
and
Hilbert is engaging in a securities
.
1050
the
the whole banks could expand
their loans only if they sold their
Stock Brokers
6.00
trust
invest,
type
Ltd.
on
tax, raised its excise
General
of
Canadian Industries
other factors contributing to
many
26
sell¬
Electric
&
in Canada
Management
flexible credit and monetary pol¬
icy has contributed to stable eco¬
4.9
10
products
past
that
20'%
>■
Canadian Gen. Invest. Ltd.—
whole,
the
of
2.7
Chicago
of
Co.
manufacturing
rights
ing
22V4
29
Exclusive
short general
and
monetary
record
gives
years
nomic
Fair¬
for
agent
&
Morse
1955
—
1.00,
18
sales
Canadian Gen. Elec. Co.. Ltd.
months.
three
clusively on weapons of credit and
monetary policy, and so far has
not adopted anti-inflationary tax
anti-infla¬
Exclusive
June 30,
Canadian $ *
Morse
wCb., Ltd.
maintain
Paymts. to
fabrics
and
Fairbanks
Canadian
tion
1955*
0.60
20
Ltd
Celanese
Synthetic yarns
authorities.
however,
tax
Britain's
Scandinavian
Canadian
of
banking since lending poli¬
determined by a handful
large
% Yield
Based on
June 30,
30,
1955
—
effective
system
June
Divs. Paid
are
recent
a
The United Kingdom relied ex¬
the
sales
cies
reserve
lending under the threat of
introducing
compulsory
reserve
requirements.
countries,
danger of inflationary
developments was more urgent,
tional
discount
their
market.
used
measures
the
increase in the interest rate of
the
and, for the first time in postwar
monetary history, used
open market operations in Treas¬
ury
bills to tighten the money
authorities
the
be
can
review
German
the
in
offering Government-financed
premiums for long-term savings
deposits, increased interest rates
of bonds issued by municipalities
and public utilities, and induced
rate, increased the reserve re¬
quirements for commercial banks
where
suasion"
Government bonds. Sweden intro¬
Germany, the central bank,
in addition to raising the discount
the
"moral
duced
In
In
in the total amount of their
Years Cash
10%
Extras for
12 Mos. to
secutive
banks
by
Quota-
Including
No. Con¬
policy both here and abroad. It is
too early to judge the effects of
the policy actions undertaken in
an
of them also have used other
forms of monetary
rise
ceilings for
mortgage credit associations, and
receptly
"prosperity inflation" promptly
applied
again
anti-inflationary
monetary policies. Since the be¬
ginning of this calendar year,
eight European countries have in¬
rates,
a
more
commercial
reduction
a
banks
European nations
threatened by this kind
discount
be
the
to
Appro*.
Cash Divs.
of
requirements for commercial
to
In
most
their
agree
branch
to
lending poli¬
imposed taxes on
fate, the establishment of
of
creased
for
their
Norway
investment; its monetary
early
postwar
years,
but
in
line
with
postKorean experiences, the Govern¬
ments
price
induce
to
banks
in
cies.
the
to
support
rate,
to
under
restrictive
however,
pressures.
discount
AND FINANCIAL GROWTH
Finally, in
England used
also the weapon of "moral suasion"
commercial
fi¬
of
record
stability.
rapid progress,
National
MINERAL
CANADA'S INDUSTRIAL,
curbed.
was
bonds, and urged the
included
nancial
was
best
its
the
credit
July, the Bank
Government
large
and
by
moreover,
raised
the
reduced
countries, such as Germany,
production has doubled since pre¬
war
days; in recent years, the
countries with the most rapid ad¬
have
sidies;
Bank
In
some
vance
Policy
that taxes, and reduced housing sub¬
in
rose
authorities, which provide
the
bulk of housing
and other
public work finance, were re¬
peatedly
increased.
Instalment
September^, 1955
Sherbrooke
Toronto
as
of
Volume, 182
Number 5468
.
The Commercial and Financial Chronicle
.
.
(1297)
Continued
CANADA'S INDUSTRIAL, MINERAL
Extras for
Years Cash
June
Divs. Paid
Wide
Life Assoc.__
of
range
endowment
32
tion
30,
Based
1.50
electric
—
0.7
and
zinc,
silver,
chemical
production
23
1.35
37%
3.6
fer¬
of
tilizers, etc.
Consol. Paper Corp., Ltd
Owns
five
mills;
daily
10
1.1875 38%
north
at
initial
the
rate
of
2,000 tons daily. The company has
b,y diamond drilling on the sur¬
face alone proved the existence
Consolidated Mining &
Smelting Co. of Can. Ltd.
the
of the St. Lawrence, was
compelled to delay milling opera¬
tions until early this year when,
utilizing local power, it started
1955
225
from
power
shore
June 30,
life policies
Lead,
less
no
than
67,000,000 tons of
ore, averaging 1.3%
property.
3.2
newsprint
copper on
its
Two
Toronto
108
in
the
and
Toronto
distributes
variety
of
glass
cohol
operating
spirits
cotton
5.2
heavier
19
1.10
18%
5.9
grades
known
21
producing
companies,
however, would be to fail to see
0.70
12%
5.5
duck
Bottle
for
caps
Co., Ltd.
beverage
2.00
46
f0.60
22
2.7
in-
General
Crow's
fiduciary
Nest
of
producer
Canadian
western
on
4.00
135
3.0
slope
Rockies
complete
19
1.70
38%
line
whiskies
of
Ontaiio
ment
36
0.70
15.75
Corp., Ltd
Bridges,
16
Co., Ltd.__
Dominion Engineering
Ltd.
Wide
variety
of
equipment
Dominion
Towels,
j
14.00
43
0.60
325
4.3
14
machines
♦
Fabrics,
wide
29
3.4
time.
Ltd
29
draperies,
0.40
etc.
variety
of
10
4.0
24%
2.5
Steel
0.60
ada.
30,
for
of
more
Canada
strip
has
also
too,
and
is taking
short
town
already
in
the
Province
section,
of
steps
will
spur
Chibougamau
treal
hotel
a
and
to
Railway,
construct
join at Cache Lake where another
new
remote
of
stores,
two spurs from its main
lines, one
from the southwest and the other
from the
southeast, which will
gamau
north
the
been
completed
community itself is
shape with modern
The Canadian National
being developed
miles
accommodate
just
taking
homes,
new
today is the relatively
350
to
The
for copper
about
whole in
Canada
newer
lead
itself.
been
laid,
to
Chibou¬
Tracks
have
the
spur
on
from the southwest, from
Beatty-
Mon¬
Continued
Quebec,
on
page
re¬
over
and
Collier Norris
Quinlan
&
MEMBERS
the
MONTREAL
host
get into
of
CANADIAN
STOCK
STOCK
EXCHANGE
EXCHANGE
'
other
produc¬
numerous
old
Collier Norris
To
the
speculator
—
Quinlan
Limited
The speculator's role in the
MEMBERS
The Investment
Canadian
stock
Dealers'
Association
of Canada
Montreal
Toronto
pro¬
investor alike—Canada
Something over 1,000 mining
companies are engaged in devel¬
opment or production in Canada
at the present time and early this
Exchange Rate.
dividends, splits, distributions, etc.
Continued
on
page
26
five
summer
new
companies
were
SHARING CANADA'S GROWTH
Ah
MONTREAL
Canadian Government, Municipal
Public
Utility and Industrial Securities
CANADIAN
STOCK EXCHANGE
STOCK EXCHANGE
Canada's
One of Canada's
"industrial"
leading
market place since 1874
Montreal, Que.
Toronto, Ont.
Winnipeg, Man.
Quebec, Que.
Ottawa, Ont.
Halifax, N. S.
Hamilton, Ont.
Edmonton,
Saint John, N. B.
Charlottetown, P. E. I.
exchanges for the trad¬
for
Canada-wide service, with offices at:
ing
the shares of major
Canadian and U. S.
of
mining,
oil
and
industrial securities.
cor¬
Vancouver, B. C.
Calgary, Alta.
Alta.
porations.
St. John'., Nfld.
The
Underwriters
-
100
member
throughout
Distributors
the
firms
world
,
with
serve
425
the
offices
investor
Dealers
and
prompt
assure
execution
of
orders.
Royal Securities Corporation Limited
Business Established
244 ST. JAMES STREET
1903
Canada's Security
C. S. E.
M. S. E.
WEST, MONTREAL 1
Royal Securities Company
Market Places
WRITE FOR A FREE BOOKLET AND MONTHLY REVIEW
Members!
Montreal Stock Exchange
The
(
Canadian Stock Exchange
Toronto Stock
Exchange
'
453
ST.
the
new
the like.
course
important
in
self.
1955.
current
areas
As
whole
a
today must look like paradise it¬
Quotations represent June 30. 1955 sale prices or the last sale
price prior to that date.
Bid and ask quotations are as of
Add
of
milling
Lake,
on
flows
favorable market situation
moter and
primary
products
t Adjusted
and
built
there.
Chibougamau Area
One of the
development of business enter¬
prises has seldomly been made
so clear as in what is
transpiring
now in the field of copper in Can¬
\
19
June
*
1.00
and
Ltd.
steel
2.6
Wks.,
Dominion Foundries &
Makes
22%
/
tapestries,
exploration
be
but
the
sive
River.
of Lynn
op¬
usually—in such prospects
metal might hold out to
them through active—and inten¬
as
companies
mining claims.
Exploration, naturally, is proceed¬
ing at fever pitch. It is probably
true that for the more specula¬
tive enterprises,
the possibility
of capitalizing on even some of
the lower grades of ore have not
appeared so bright in a very long
structural
and
cranes,
in
the
as
to re-examine
all kinds
of
Saguenay
which
companies in produc¬
well
has induced
Investment holding company
steel
by-product or an
for
investment,
Felicien
from
mining industry, just off Lake
Chibougamau itself.
A new air
more
future, including
short term, it is
of the
trying to
The
4.4
Anglo Invest¬
Dominion Bridge
a
St.
John
tion.
gold producer
Dominion and
as
firms
and
gins
Dome Mines Ltd
dozen
tion
4.4
interests include
co.
also
two
_<
holding
as
less-well-known firms among the
"Ltd.
a
immediate
ments
Distillers Corp.-Seagrams
A
times
necessary to take into considera¬
tion the activity and accomplish¬
Co.,
38
foreseeable
the
Coal
as a
copper
the
business
Pass
Ltd.
Coal
industry
for
pects
industry
Crown Trust Co
200
companies were interested in one
phase or another of copper, some
portunity
from
St.
present
time
the all-weather
community—Chibougamau—had
to
com¬
of
or
cent
years
and months.
To be
able to assess accurately the pros¬
4.3
56
the
27
1,000
excess
the
air
the actual accomplishments of the
of
copper
Crown Cork & Seal
spectacular devel¬
the larger or better
of
than
more
alto¬
more
opments
these
The
companies
are
the
note
co.—al¬
Cosmos Imperial Mills Ltd.__
Manufactures
29
Of
panies, slightly in
Producers
engaged in the busi¬
ness of producing
copper in Cannada at the present time. Just to
containers
and
and
1.50
Copper
dozen
gether
20
the
refining.
Dozen
Two
3.5
area
Corby (H.) Distillery Ltd."A"
Holding
22%
gas
Consumers Glass Co., Ltd
Wide
0.80
Lake
reported being formed each week.
production—mining,
capacity, 2,479 tons
Consumers' Gas Co. of
Manufactures
at
by
case
on
Paymts. to
1955 ♦
Canadian $ *
accessible
highway
June 30,
1955
—
Confederation
Quota-
12 Mos. to
5
Coppex Mining Prospects in Canada
Approx.
% Yield
Including
No. Consecutive
page
only
AND FINANCIAL GROWTH
Cash Divs.
from
25
FRANCOIS XAVIER ST.
MONTREAL, QUE.
,
26
The Commercial and Financial Chronicle
(1298?
26
Continued
>
from page 25
iska property, discovered in 1929.
metal prices forced the sus¬
Copper Mining Prospects in Canada
ville
a
as
bridge
as
is
expected
spur,
ward
this
will extend generally north¬
via Bachelor Lake.
Along
route,
90%
of the necessary
clearing and 20%' 'Of the grading
has been completed.
The CNR,
cpfnpleted sur¬
veys of the other /oute, 139 miles
in
length, from St. Felicien to
Cach Lake.
At the junction of
the two spurs at Cache Lake, a
however, has also
„
contract for work
to
short
of
extension
will
track
go
Chibougamau town. CNR asked
for tenders for clearing, grading
and
installation
of culverts,
trestles
and
sub-structures
of
to
bridges for the first 66-mile sec¬
tion from St. Felicien to Chigou-
on
this stretch
pension of work in 1937. It was
the completion of a road to Chi¬
bougamau from St. Felicien by
the Quebec Dept. of Mmes in 1947
that
stimulated
the
in
the
and
gold have been known to exist in
Chibougamau area in Abitibi
the
County, Quebec, for more than a
half
century.
The difficulty of
transportation restricted develop¬
ment
of the
numerous
deposits
which
were
discovered.
Never¬
theless, prospecting and
explora¬
tion continued in the area
was
and in
development
actually started on the Opemunderground
Members
Investment
Dealers' Ass'n of Canada
Million
9
AND FINANCIAL GROWTH
Cash Divs.
and
gold
the
Dominion Glass Co., Ltd
Wide
had
leum Co.,
in
duction
and
shipping their output
highway to St. Felicien
for
refining at Noranda.
This
shipping operation will be greatly
simplified next year when the
railroad line from Beattyville in¬
they
A
Noranda
the
ship
of
two already
of
its
Members
Exchange
Montreal Stock
Place
507
line for a period of six
years.
In addition, the Howard
Smith paper interests have under¬
taken to guarantee the movement
of 30,000 cords of pulpwood per
year
for a period of six years
72
Peter Street, Quebec
St.
between Belle Riv¬
area
probably consist mostly
pulpwood and supplies
since that area is heavily forested
of lumber,
million
with
an^estimated
cords
annual yield of 366,000
an
&
Listed
SAVARD & HART
/
Canadian
Stock
Toronto Stock
Exchange
to operate mills and mines
meet the ordinary needs
in
life
of
Exchange
to
and
the
Easy
this
W., Montreal
lines
erected
were
the
mill
five
40 Exchange Place, New York
21
miles
the
to
QUEBEC
-1-
TROIS-RIVIERES
CHICOUTIMI
—
—
SHERBROOKE
ST. JOHNS, P. Q.
I.
to
sell
and of
course
purchases
its
Co.
power
the
from
area
air
than
claims
two
shares
0.55
13
4.2
29
1.50
35%
4.2
12
§1.00
15%
6.5
b22V8
18.0
Machine
Co.,
Ltd.
trust business
Corn.
vacuum
cleaners,
&
purifiers
•
Wide
line
17
—
life
of
43
1.7
28%
2.6
25
0.75
6.4
endowment
&
Falconbridge
Nickel
Mines,
Ltd.
23
Nickel,
cobalt;
copper,
produces
0.75
subsidiary
steel castings
'
■
.
Famous Players Canadian
'
Corp., Ltd.
Largest
ture
1.60
21
operator
theatres in
of
motion
pic¬
♦
Canada
Quotations represent June
price
June
*
Add
prior
that
to
30.
1955
Bid
date.
sale
prices or the
ask
and
quotations
last sale
are
as
of
1955.
30,
Canadian
current
Exchange Rate,
b Bid.
§ Adiusted
for
Canadian
Canadian-U.
S.
rate
of
exchange.
exchange rate to translate
into
U.
S.
Add current
funds.
million of
of
OPPORTUNITIES IN CANADA
Our facilities
can
be of valuable assistance to those interested
industrial
development of Canada and of benefit to
the six
Opemiska
Cop¬
itself
in
the
investors
in
selecting suitable investments through which to
participate in Canada's assured growth.
from
Nesbitt, Thomson and Company
Limited
Members
>
of
The
Investment
Head Office:
/
Dealers'
Association
355 St. James Street
Branches in the
of Canada
W., Montreal
principal Cities of Canada
Campbell Chibougamau
Campbell
holds
rill
Chibougamau which;
from Mer¬
99-year lease
a
Nesbitt, Thomson and Company, Inc.
Island
two
Mining Corp., Ltd. for
its
claims
on
adjoining
of
property
and
the
Kokko
Broad
25
on
the mainland has
Creek
averages
better
level.
Its
mill
Continued
which
on
Federal
Y.
Teletype NY
Street,
Boston
1-4358
10
most of
than
3%
besides some gold.
The
company
has
also
decided
to
deepen its main operating shaft
1,000 feet below the present 1,250copper
foot
140
reserves
of 2.6 million tons of ore,
which
Street, New York 4, N.
Telephone HAnover 2-8875
-
zone
4.00
Felicien.
St.
at
reported to be 1,054,000 tons grad¬
ing 4.82% copper and 0.068 ounces
per ton of gold.
The company is
deepening the original 550-foot
Montreal Stock Exchange
Harbour 6101
13
policies
shaft on its property and drill¬
ing below the 525-foot level—has
indicated
additional
high, grade
ore.
The Opemiska mill has a
capacity of 400 tons a day.
•
the
Page 35
on
Royran Gold Fields.
company's reserves are also
The
Montreal
3.6
Equitable Life Insurance Co.
for
(Quebec) mines which
acquired the assets of the original
company and four years ago five
•
Starting
Invest't Trust
"Electrolux"
Sag.uenay
per
233 Notre Dame StreetWest
33
mill at
paper
supply power to other mining
companies which 'ma,y establish
themselves in the district. Quebec
million
The Toronto Stock Exchange
1.20
5.6
7Y8
to
more
Canadian Stock Exchange
0.40
and
the Chi¬
Ltd.
mill
will be in a position
Hoyle Mining Co., subsidiary of
Ventures, Ltd., is reported to hold
Members
44
10
Ltd.__
yarns
to
power
Transmission
„
)
Explorers,
bougamau
the
Oswald & Drinkwater
a
Investment
Quebec Hydro has also con¬
Hydro
PROVIDENCE, R.
3.1
12
Electrolux
Opemiska
tracts
City, IIAnover 2-6625
cotton
Washing
miles
mine.
Offices:
13
Companies Which Have Paid Consecutive
General
Chibougamou
a
25,000-volt
Campbell
and, another,
line
Branch
of
operates
Economic
from
Substation
Obaski
the
to
0.40
•
summer.
mission
Head Office: 230 Notre Dame St.
2.1
washing machines, floor
polishers, air circulators, etc.
completed only early
Connecting trans¬
was
39
producer
Ltd.
This
St. Felicien into this district.
work
0.80
Electric
the Quebec
Commission con¬
transmission line from
a
5.9
Operates theatre in Toionto
area,
Hydro-Electric
structed
Exchange
17
Chemical
&
Textile Co.,
of Canada
power
Members: Montreal Stock
&
tar
coal
Eastern Theatres Ltd._^
the
the
Ltd
Second Table
Chibougamau
necessary electric
supply
with
area
1.00
steel
&
Dividends From 5 to 10 Years Appear in
cords.
To
| 10
I
Clermont, Quebec
olSnutpwood capable of sus¬
taining
15.7
.
14
iron
Donohue Brothers Ltd._
will
line
5.6
10
Tar
of
range
fabrics
Chibougamau.
Traffic
the Cache Lake-St. Felicien
over
36
2.00
-
oil¬
T
Stores
Wide
and
iere
and
.
co.—coal,
Dominion
concentrates over the Beat¬
from the
Montreal
d'Armes,
3.4
derivatives
tyville
Members Canadian Stock Exchange
6.00 bl75
pro¬
they will
daily average of 325 tons
companies that
a
ore
12
69
linoleum
Co., Ltd.
Distiller
Owns
the
4.1
Operates grocery & meat chain
smelter.
antees from
35
V
Dominion
itiates service over a much-short¬
to
holding
Dominion
are
route
of
Interests
the
ened
1.425
products
Dominion Steel & Coal Corp.,
Ltd.
operations in pro¬
Chibougamau at the
present time — Opemiska Copper
Mines (Quebec), Ltd. and Campbell-Chi'oougamau Mines, Ltd.—
*
'
•
Ltd
range
cloth
There
main
two
are
indicated.
been
1955
—
i
Wide
1955—a total of over nine million
had
1955 ♦
Canadian 5 *
Dominion Oilcloth and Lino¬
proximately 4 V2 million tons and
by the beginning of this year —
tons
June 30.
etc.
ance
to ap¬
increased
been
on
Paymts. to
38
variety of glassware
Dominion Insurance Corp
Operates company for fire insur¬
building of the road this es¬
timate
Based
tion
June 30,
30,
1955
—
had been proved in
Within a year of
ore
section.
that
ducing
Geoffrion, Robert & Gelinas
June
Divs. Paid
Up to that time about 2xk mil¬
tons of potential base metal
Quota-
12 Mos. to
Years Cash
The railroad has obtained guar¬
INVESTMENT DEALERS
Extras for
No. Con¬
of Ore
Tons
Appro*.
% Yield
Including
laid.
was
lion
over
Geoffrion, Robert & Gelinas, Inc.
25
page
secutive
Construction Co., Ltd.
McNamara Construction
The spur from Beattyville in to Chibougamau will cost
about $17 million as will also the
other spur in from St. Felicien.
Occurrences of copper, iron and
Thursday, September 29,1955
.
then that the
was
Chibougamau townsite
Co., Ltd.
1935
from
.
CANADA'S INDUSTRIAL, MINERAL
interest
renewed
It
area.
to Therrien
completed about this time next
year,
in Jul.y and a month
the railroad awarded a joint
ago
construction.
under
Lake
biche
Belle Riviere where
149-mile
This
be
far
Continued
Low
.
has
page
a
27
Direct
New
York,
wire
connections
Boston, Montreal, Toronto,
London
(Ont.),- Winnipeg,
between
Ottawa,
Calgary
Hamilton, Kitchener,
and
Vancouver
Volume 182
Number 5468
..
The Commercial and Financial Chronicle
.
Continued
CANADA'S INDUSTRIAL, MINERAL
Cash Divsi
-
Years Cash
% Yield
Based on
tion
Paymts. to
June 30,
Extras for
June 30,
12 Mos. to
June
Divs. Paid
30,
1955♦
1955
—
Copper Mining Prospects in Canada
Quota-
Including
No. Consecutive
Canadian $ *
Campbell
a
28
Inc
§1.50
26%
5.7
13
Canada
of
Ltd. "B"
50%
3.9
have
4.00
bl20
3.3
Canada
16
and
general
27
0.675
products
A. J.
12
-
Synthetic
&
operates
3.5
34
,
'
in
0.40
91/*
4.3
4.00
2.6
151
0.75
10.7
7
12
commercial
&
1.00
b40
2.5
to
the
in
of
range
health
life,
to
the
be
accident
of
of
wire
56
Ontario
27
0.60
17
0.20
4.75
'
5.3
3.3
18
3.25
Cotton
and
Co., Ltd.__
textile
in
14
Hayes Steel
1.10
8.5
13
products
20
seamless
"Wilton"
0.70
7.7
9
Products
Dauch
boxes,
variety
13
1.50
4.2
36
Paper Co.
22
of
1.60
2.6
61
paperboards,
etc.
Hollinger Consolidated
40
0.24
23%
1.0
gold producer
Hudson
Bay Mining &
Smelting Co. Ltd
21
4.00
62
6.5
zinc products
copper &
Quotations represent June 30, 1955 sale prices or the last sal*
price prior to that date.
Bid and ask quotations are as of
June
30,
1955.
current
alone.
30%
the
the
So,
feet
looks for better results
been
mond
drilling
the
1.6%
a
basis
reasonable
in gold
inches.
its dia¬
progesses.
current copper
of
company
copper
as
program
estimates that
could
mined
be
profit.
Continued
The
on
Canadian
Exchange
net
co¬
of
Private Wire to Maritime, Province*
are
more
ROYAL BANK BUILDING
MONTREAL
addition
Marquette 8671-2
Telephone
to
companies actively exploring and
preparing for production in the
Chibougamau area.
Chibougamau
Explorers,
Ltd., for
of
one,
which has
535,000 tons of 0.9%
0.338
ounces
ton
per
Ltd.,
Mines,
McDOUGALL & CHRISTMAS
reserves
copper
and
of gold
has
Members:
production
by
sinking
a
shaft 1,245 feet in depth with
eight levels and constructing a
500-ton mill.
Also, Copper Cliff
Consolidated Mining Corp. which
has been doing extensive explor¬
ation, including shaft sinking, has
total
two
million
reserves
tons
Montreal Stock
Exchange
Canadian Stock
Exchange
The Investment Dealers' Association of Canada
of
aver¬
aging from 1.5 to 2.2% copper
plus some gold and silver. Among
other companies actively engaged
in diamond drilling and explora¬
tion in the area are Chib-Kayrand
Copper
Mines, Ltd., Grandines
Mines, Ltd. and Norbeau Mines,
520 St. Francois Xavier
Street
Montreal
Ltd.
Exchange Rate,
Quebec Chibougamau
for
Canadian-U.
S.
rate
of
exchange.
Add current
Canadian exchange rate to translate into U. S. funds.
Also
there
Continued
on
page
28
each month of the
Canadian economy
Monthly, the B of M's Business Review re¬
ports and interprets for you Canadian eco¬
nomic
as
or
news
they
and trends. To receive
published, write
Head Office, Montreal.
are
any
copies
U. S. office
properties of Quebec Chi¬
bougamau consist of some 450
acres, flanked on the southeast,
a
portion of the west and a sec¬
tion of the southeast by the hold¬
ings of Campbell Chibougamau
and the remainder of the west and
the east by
Cliff
per
Montreal
-
•
-
64 Wall Street
San Francisco —333 California Street
CHICAGO: Special Representative's Office, 141 West Jackson
Blvd.,
that
Consolidated
free
•
RESOURCES
EXCEED
$2,500,000,000
within
area
two
contain
IN
CANADA
Canada has much to offer in the field
date
has
»
its
its
investment securities. We
send you a
trial
of
shall be glad to
selected list of bonds, indus¬
preferred and common stocks; also
selected Canadian mining
Mining
and oil issues.
a
shares
in
strategic posi¬
confines
wide
ENQUIRIES INVITED
53,100
Chibougamau^
large ,deposits
in
,
holds
7,625
the
miles
of
been
,
and
is, occupies
Most
it
Quebec
escrow.
Office: TfontnceU
650 BRANCHES ACROSS CANADA
INVESTMENT
the properties of Cop¬
which
in
tion
New York
(
The
shares
of
Branch: 14 Metcalfe Street, OTTAWA, Ont.
Chibou¬
This com¬
Quebec
pany
which has assets of over
$900,000, much of it in cash, and
practically no liabilities has em¬
barked
upon
a
20;000-foot dia¬
mond-drilling
program
on
its
properties on the north shore of
Lake
Chibougamau,
of
which
8,394 feet has been completed,
largely this spring and summer,
disclosing seven copper bearing
zones, similar in occurrence and
structure to those being developed
on adjoining property.
Corp.
Bank
is
Goldfield, Ltd.
gamau
of
known
KIPPEN & COMPANY, Inc
Members
Investment
Dealers' Association of
Canada
an
to
of copper.
607 St. James St.
West, Montreal
UNiversity 6-2463
drilling to date has
zone
"A"
established
which
the
to
exist¬
Direct Private Wire between
Montreal, Toronto
at
lower
page
Canadian Stock Exchange
Chibougamau
in
Thus,
ma¬
Members
of
but
disclosed
Opemiska and Campbell Chibou¬
gamau there are a host of other
b BiC.
§ Adjusted
in
are
area
ore
Manitoba
intersections
0.64% copper across 10 feet.
Montreal Stock
producing areas—Chi¬
and Manitouwadge—
estimated its indicated
Gold
Mines, Ltd
Ontario
best
two-thirds of this 30%
or
group
of
preparing
for
commenting this fall
Ltd.__
of Canada Ltd
Wide
41
two
been
"Axmin-
rugs
variety of automotive parts
and
in
or
controlled by Anacon Lead
Harding Carpets Ltd
Specializes
another, 63
interested
6.2
gold producer
variety of
Wide
0.25
fiduciary business
Hamilton
ster"
0.7
b345
products
Hallnor Mines, Ltd.._
Wide
2.50
18
Guaranty Trust Co. of Can._
General
the
erratic
somewhat
ORDERS EXECUTED ON COMMISSION BASIS
or
and
policies
variety
Re¬
been
MAJOR & COMPANY
adjusted
extent
company of any
aspect or other
mining in one section
and
Greening (B.) Wire Co., Ltd.
Wide
in this section has
have
re¬
one
bougamau
office
Great-West Life Assur. Co.__
Wide
12
some
drill
down¬
highgrade
cop¬
Of 205 companies
currently en¬
gaged
promising
gen¬
stationery
distributes
Add
to
is
copper
dis¬
& -business forms
supplies
&
furniture throughout Ontario
*
price
Canada
which
products & allied
Grand & Toy Ltd
♦
has
balt production.
f
goods
-
Chibougamau
downward
Ltd.
31
Manufactures
of
of
tons
drilling at comparatively shallow
depths has shown average values
so far of 1.4% copper.
The richest
deposits in this area are deep
seated, however, and the company
for a length of 1,300 feet
at both ends.
Grab samples from zones "C,"
"D" and "E" have given values
expenses.
The com¬
is to receive, under the con¬
tract, 24.5 cents per pound or
current market price, whichever
is greater, for all
copper delivered
to the U. S. Government but the
value
rubber
Stores
subsidiaries
shear
million
have been revealed.
sults from the work in these holes
operating
floor
29
synthetic
tribute textile
S.
of
15
;
Manages
width
pany
"B"
Hinde
U.
3.8
Eastern
products
&
the
31%
Campbell
Canada, Ltd
eral
with
1.20
Goodyear Tire & Rubber Co.
Mackay
A
the
two
Government will terminate when
refrigerators, etc.
Gordon
the contract.
contract
7.5
utensils; hotel, restau¬
and
hospital
equipment;
and
terial.
diamond
confirmed
as
bl3%
Household
of
have
where
per ore
high as $17.50 per ton
and 12% copper across six
agreement
an
1.00
.
Natural
Shallow
feet.
"F"
zone
ceived $6.3 million after payment
General Steel Wares Ltd
rant,
two
holes
in
possibilities are, in
all
respects, considered similar
to Copper Cliff's carbonated zone
On
of
18
energy
length drilling
showed copper of from 0.77 to
2.17% along with gold and silver.
Surface trenching of a 270 foot
length in zone "B" gave an aver¬
age of 6.8% copper and $2.50 in
gold and silver across a width of
drilled
ore
prices, the
terms
the
The
depart¬
largest
in
been
traced
the
-
ment store in Ottawa
Canada
un¬
10
Gatineau Power Co
Hydro-electric
sebured
was
feet
50
have
where the
open
-
Freiman, Ltd
Owns
1.20
,
'
and fabrics
yarns
this general area, how¬
Only four exploratory holes
Export-Import Bank in
Washington, D. C., from whom a
$5.5 million credit was obtained
lumber
and
paper
extension
to
900-foot
a
in
with
Fraser Companies, Ltd.__.
variety
40
ward extension of
der
2.5
contrac¬
tors
Wide
in
to finance
Ltd.'
Engineers
started
along
shear
a
At the better intersections
month
23
of
Co.
at
—
of
ence
width.
by last December
with
delivery to be completed
by the end of 1956 but a six-
manufacturer
Foundation
to
copper, to
Noranda from its
the Defense Materials
Procurement Agency of the U. S.
Government.
Production was to
Canada,
-
Automotive
refined
ores,
2.00
63,200,000 pounds
electrolytic refined
be
'
Sells file, rain insurance etc.
Co.
contract to sell
of
Operates large candy chain
Federal Fire Insurance Co. of
Motor
Chibougamau is in
enviable position of holding
the
—
Fanny Farmer Candy Shops,
Ford
capacity of 1,700 tons a day went
into production late this
spring.
1955
27
Very little work to date has been
26
page
done
Approx.
..
from
ever.
AND FINANCIAL GROWTH
1
(1299)
28
X
0
23
(1300)
Continued
fro?n
27
page
Copper Mining Prospects in Canada
grade
ores
mixture
would provide
good
a
the richer ores.
with
ing $1.8 million spent by United
Asbestos, only 25% of earnings
to
are
Copper
Quebec
a
Philip M. Malouf, its President, is
associated. This Malouf group in¬
cludes United Asbestos Corp. Lytd.,
Quebec Copper Corp. Ltd., as well
as
Copper
Cliff
Consolidated
and
others.
some
Mr.
Malouf is the largest single stock¬
in
United
Asbestos
of
holder
is
he
which
director
and
United
Vice-President,
a
consulting engineer.
has
Asbestos
made
an
with
American
Smelting & Refining Co. by which
the latter is committed to bring
the
asbestos
deposits
held
by
arrangement
United
on
"Thetford
into
Black
Mines region
production
rate of
at
a
the
in
of Quebec
minimum
4,000 tons daily and at
estimated
Profits
Lake
are
cost
divided
be
bestos'
Quebec Chibougamau is one of
group of companies with which
Mines
'
The Commercial and Financial Chronicle
up.
United As¬
share will vary on a slid¬
$20
million.
to be divided between
the two companies. While costs of
"useless because it
from
time, it
was
would
—if
first
land not far off the shore in Lake
Back
in
1905, John E.
Hardman, professor of mining at
McGill University and Chairman
Institute of Min¬
of the Canadian
ing and Metallurgy, in a report to
directors
the
of
Chibougamau
Mining Co. Ltd., said the quality
of the asbestos
ore
on
the
island
good, that it could be mined
was
with
ease
when proper
machinery
introduced and that it
was
the
tion still remains
in
kind
as
of
Thet-
ford and Black Lake.
same
found
was
INVESTMENT
interest
substantial
a
controlling—interest
the
bring them into production.
Malouf
Mr.
and
though now only
director and a substantial share¬
holder, of Quebec Copper Corp.
Ltd. which, commencing produc¬
tion in February of last year, has
stepped
from
its output since then
tons a day to 800 tons.
up
450
Sullivan
East
cised
their
shares
of
Ltd.
option
the
six
Con¬
Sullivan
and
Mines
solidated
have
on
million
shares
capital stock of the com¬
pany, thereby reducing the loan
secured by a first mortgage on all
the assets of the company. At the
present, the amount remaining of
the
original mortgage of $1 million
Is reported to be nil. The company
is said to have enough ore
re¬
serves to operate
at the 890 tons
a day rate for 4 to
5 years. How¬
ever, the company is reported to
have run in its explorations into
two
new
orebodies, underlying
the present producing structure,
which from first indications have
appearances
major
SECURITIES
of
scources
developing into
of excellent grade
ore.
engaged in developing its property
MEMBERS
STOCK
of Heron
40
miles
northeast
on
CANADIAN
Lake
Superior. This
EXCHANGE
ST.
JAMES
STREET
MONTREAL
has
WEST
an
ore
Bay
company
14,899,000
1
estimated
reserve
Lends
money
security
first
on
PLateau
5853
copper,
tons,
averaging
per
at
1.72%
3.55% zinc and 1.73 ounces
ton
of
gold
well
as
t as
pyrite. It expects to get into
duction of 3,300 tons per
15%
pro¬
Flo
Imperial
Ltd.
.
day.
from
its
main
24-mile
line
spur
MEMBERS
Co.
on
page
>
through-
•
Glaze
Paints
5.2
23
1.20
15
•-
paints, etc.
-
Imperial Life Assurance Co.
of life,
policies
comprises
full
2.3
38%
0.90
56
subsidiaries
integrated
PLateau
,
oil enterprise
>
Imperial Tobacco Co. of Can¬
ada, Ltd. "Ord."
44
0.50
11 ¥2
4.4
17
1.05
17
6.1
Tobacco, cigars and cigarettes
Inter-City Baking Co., Ltd.__
bakeries
Operates
in
Toronto,
*
Ottawa, and Montreal
Nickel
International
<
of
Co.
22
Canada, Ltd.
§3.00
70V2
4.3
10
§2.96
108V2
2.7
Holding and operating co.—Pri¬
mary
operations at mines and
smelters
Sudbury,
near
International Paper
and
Holding
crates
Ont.
Co
operating
pulp
and
paper
Canada and the U. S.
International
—
co.—Opmills in
i
Petroleum
Co.
oil
American
•
.
•
Corp.-
development
and
26%
3.9
;40%
3.8
producer and
-
in
nies
1.05
38
Ltd.
South
.
12
1.55
,
t
of
and electrical compa-
Alberta
Investment Foundation Ltd.-
12
1.50
45
3.3
39
1.00
18
5.6
12
1.375
16%
8.2
16
Management
0.80
16.25
4.9
11
1.00
23%
4.3
investment
type
trust
Journal
Publishing
of
Co.
Ottawa, Ltd.
Ottawa
"The
Journal"
Kelvinator of Canada, Ltd.—
Complete
line
of
parts and
home
»
appli¬
repairs
Kerr-Addison Gold Mines
Ltd.
Ontario
gold
producer
Ltd.—
Labatt
brewing
—
business
line
29
Quotations represent June
price
June
*
Add
prior
30,
to
that
30.
date.
1955
Bid
sale
and
prices
ask
or
the
quotations
last
are
sale
as
of
1955.
current
Canadian
Exchange Rate.
t Adjusted for stock dividends, splits, distributions, etc.
§ Adjusted for Canadian-U. S- rate of exchange.
Add current
Canadian exchange rate to translate into U. S. funds.
Exchange
HIGH GRADE
3971
MONTREAL, CANADA
DIRECT SHIPPING IRON ORES
FOR THE
Canadian Securities
BLAST FURNACE AND
OPEN HEARTH
MI
h. h.
ROYAL
BANK
BUILDING
MONTREAL, QUE.
Direct private wires with
New
York, Toronto
"•
Halifax, N. S.
and
Maritime
Provinces
Sydney, N. S.
•
Saint John, N. B.
Steep Rock Iron Mines, Limited
Steep Rock Lake, Ontario
Branches
•
•
Moncton, N. B.
_
-
.
Imperial Oil Ltd
With
1.8
84
en-
range
term
and
dowment
1.50
54
of Canada
Comprehensive
507 Place d'Armes
Tel.
,
2.9
5114
1.50
80
i Montreal Stock Exchange
Canadian Stock
"
1
*
-
General
into Manitou¬
Continued
&
:
3.3
37J/2
has
wadge and expects on completion
Morgan
'
,
Varnishes, laquers, enamels,
♦
a
1955
'
—
,
.
-
-
,
branches
out Canada
Canadian $
fl.25
91
June 30,
1955♦
deposit
accounts
234
Operates
John
Canadian National Railway
just completed
June 30,
mortgage
derates
&
debenture
&
ances,
Tel.
tion
June 30,
1955
Huron & Erie Mortgage Corp.
Publishes
400
12 Mos. to
—
natural gas
Manitouwadge section of
Paymts. to
secutive
Divs. Paid
Management
Ontario, Geco Mines Ltd. is busily
DesRosiers &
Extras for
Years Cash
International Utilities
Copper at Manitouwadge
Approx.
% Yield
Based on
Including
No. Con-
refiner
In the
Quota-
Cash Divs.
.
.
exer¬
1,619,793
the
of
.
Imperial Bank of Canada——
founder
was
President,
29,1955
AND FINANCIAL GROWTH
205 miles
a
to
have
not
'
Thursday, September
CANADA'S INDUSTRIAL, MINERAL
was
likely a
new company would be formed in
which
Quebec
Chibougamau
.
27
page
Island, it is
Asbestos
Interestingly,
Quebec
Chi¬
bougamau has acquired a working
option by which it could obtain a
controlling interest in Asbestos Is¬
correct.
from
beginning of rail trans¬
portation." In the event of the
existence of commercial quantities
of asbestos can be substantiated
more.
Chibougamau and at the moment
it is diamond drilling there to see
if the reports about the place are
Continued
the
on
bringing the property into produc¬
unpaid, includ¬
fortunately, at that
ing scale from 50% when the
profit is less than $3 per ton to
60% when the profit is $5 a ton or
an
of
The only difficulty with the ore
deposit was that, while it con¬
tained "a very large amount of
commercial fibre,"
he said, un¬
..
Volume 182
Number 5468
i
.
The Commercial and Financial Chronicle
.
3
s
Continued
CANADA'S INDUSTRIAL, MINERAL3
AND FINANCIAL GROWTH
ik.
*
'
from
(1301)
28
page
in Canada
»
Cash Divs.
Approx.
Including
No. Con-
-
j
*
i
June
Divs. Paid
Lake
Shore
producer
Based
of
on
tion
Paymts. to
June 30,
June 30,
1955*
30,
1955
1955
of
duction
7.0
mine
29
0.90
21 y4
4.2
18
0.65
4.8
0.6*0
8%
6.9
stores in
.
in
the
Manitou-
at present, two other
small mines are an¬
and in the expectation
area
have
Lead
Mines
Chibougamau Explorers into
this
will
be
requiring transporta¬
tion.
pro¬
fall—has obtained
land
1.50
80
1.9
The railroad holds it to be
quite
that
the
Manitou-
Conceivable
^
wadge
Ontario
eventually
area
Starting
ore
traffic
If
at
fully
60,000
realized,'
will
§1.25
74
1.7
be
would
4.0
in
New
In
New
products
0.27
5.15
5.2
1954.
14
3.25
84
1.00
39
2.6
June
♦
Add
30,
§ Adjusted
for
Canadian
30,
date.
1955 sale
Bid
and
prices
S.
or
of
the
about
Corp.,
of
its
Ltd.
zinc-
that
Noranda
rate
of
of
Columbia, at the other
the
scene
Ltd.
country,
of much
also
is
the
exploration today.
Continued
on
30
page
MEMBERS
acces¬
—
THE TORONTO STOCK EXCHANGE
THE INVESTMENT DEALERS' ASSOCIATION OF CANADA
Beattie-Duquesne
interest, have
rather
some
discoveries.
grab
exchange.
into
U.
Add
S.
current
funds.
on
page
with
30
electric
WHERE
sensa¬
Beattie
samples
half
HEAD
taken
255 BAY
LOCAL BRANCHES
gold.
ounce
OFFICE
STREET, TORONTO
Bloor
at
Bay
■
"
St. Clair at Yonge
—
is
made
Canadian
available
in
tons
BRANCHES
of
foundland
The Toronto Stock
Exchange lists
a
larger
number of industrial stocks
than
Blair
mine,
is
Locke Gray &
Burnham
Co., New York City
&
Co.
Calgary-Vancouver
—
Co.
—
New
York
City
I
Thomas H. Roadhouse
John M. Rogers
CNR
Clifford T. Low
James W. Cochrane
Clayton M. Williams
Red
New¬
connected
the
D'Arcy M. Doherty
mine
Central
of
\with
by
wholly-owned
a
sub¬
There
are
shares of
48 Textile
enterprises
58 Financial institutions
38 Utilities
Paper companies
and many others.
copy
of
our
Monthly Review, giving the essential
on
the
more
than
1,000 listed issues, will be
sent to you on
request.
TORONTO
STOCK
in
Newfoundland
Mining
Mining
dicated
some
1.9%
copper
two
ore
million
in
the
tons
of
Tilt
old
Cove copper mine on Notre Dame
Bay.
of
These
the
M.
—
companies—part
J. Boylen interests of
acquired the preperty
only
last
yielded $5
from
1857
two
The
year.
property
in
dividends
million
to
just before the First
World
War
down.
Consolidated
when
it
was
shut
Mining
&
Smelting re-examined the ground
in 1946 and Falconbridge Nickel
1951
Now
with
inconclusive
results.
the
Boylen group plans a
1,000-foot production shaft and
a
mill
capable
1,000 tons of
of
ore
handling over
day. Falcon-
a
The Commercial Letter
published
monthly by The Canadian Bank
of Commerce carries authori¬
tative articles of
timely interest to
American businessmen. In it,
you'll
find up-to-the-minute facts and
figures
the Canadian,
details of specific
developments, studies on
business and industry, etc.
on
economy;
STREET, TORONTO, CANADA
Write
Development Division,
25 King Street, West,
reported to have provided $9 mil¬
lion
in
financing
development.
for
this
mine
THE CANADIAN BANK,
OF COMMERCE
request on your business
letterhead is all that's necessary.
wick Trust Co. of Fredericton
are
new
If you have a business—not
speculative—stake in Canada,
you'll find our Commercial
Letter profitable reading. To
get your copy regularly, your
bridge Nickel and the New Bruns¬
EXCHANGE
ON
CANADA
drilling by Bathurst
Corp. Ltd. and Maritime
Corp. Ltd. has also in¬
in
1852
FACTS
Diamond
Toronto
complimentary
shared
are
6 million tons.
Boylen
Manufacturing companies
75 Construction and steel firms
Profits
Co'.
50-50 between'the two companies.
Ore
reserves * are
estimated
at
major business activity in Canada. nearly
Founded
&
*
the
company's own private 37-rPile
railway. Buchans, operator of the
exchanges in Canada. Refining
These include every
phase of
trading data
in
on
McCuaig Bros. & Co., Montreal
Reynolds & Co., New York City
Nova
the
north
and
Millertown
Haileybury
other two stock sidiary of American Smelting &
any
27
Terra
owns
miles
Lake
-
—
a
entering the
picture,
too.
copper.
five
located
Timmins
—
Partners
is
copper
Properties * Ltd.
Indian
Kirkland Lake
Wires to G. E. Leslie A Co., Montreal
Mining Co. Ltd. in 1954
milled 340,000 tons of lead-zinccopper ore, producing copper con¬
centrates containing about 3,300
IN CANADA?
A
<
the
Buchans
FOR INDUSTRIAL SHARES
98
of
of weeks.
Newfoundland
,
IS THE LARGEST MARKET
BAY
British
•
end
DOHERTY ROADHOUSE & CO.
30
length
averaging
upward
from
2.15%
copper. Lyndhurst Mining which
holds 127 claims in the' region has
also been finding ores containing
relatively high grades of copper
on its property this summer.
The
report from Lyndhurst is that it
is pushing plans for a mine build¬
ing to be placed in operation as
soon
as * possible
after
hydro¬
1
exchange rate to translate
operation
esti-.
an
—
silver and 0.16
matter
i,.
of
which
copper
;
Continued
t
Smelting
recently at 564 feet, BeattieDuquesne encountered 36 feet of
ranging from 0.48% to 4.54%
the last sale
quotations are as of
ask
Exchange Rate,
Canadian-U.
0.5%.
ore
,
Canadian
abhut
lead-copper
mine
in
southern
Cape Breton Island, Nova Scotia,
Brunswick
More
1955.
current
is
MetalrCorp.
year.
area
Quebec
copper
ounces
Fully integrated lumber business;
large exporter
June
&
early this summer from a surface
showing on its property showed
7.68%
copper
along
with
9.14
3.9
15
MacMillan & Bloedel Ltd."B"
that
ore
mill
^Copper
substantial
a
reports
interests
to
in
tional
Holding co.—newsprint, lumbering
prior
of
recently made
Maclaren Power & Paper Co.
price
1957.
year.
Promising
Lyndhurst
north
holds
holding company for four
British Columbia companies
Quotations represent
the
Ltd.
27
Coast
A
♦
1,500-ton
a
in
outbound
to
per
Area
a
only by an all-weather high¬
way, both Beattie-Duquesne Mines
Ltd. and Lyndhurst
Mining Co.
Lucky Lager Breweries
& power
continued
Brunswick, Brunswick,
sible
Chocolate and other confection
<1954) Ltd.,
amount
Lyndhurst
In
miles
25
tons
665,000 tons
Province
1.00
mining
*
Ohio
20
of
the
traffic
mar¬
Walter M. Lowney Co., Ltd.-
Dec. 15,
Mindamar
.
continued active development last
inbound
estimated
Page 35
on
17
on
of
the
copper.
Copper
volve
-
Inc.
Oper. 133 "self-serve" food
kets in north'n N.Y., Pa., &
Breweries Ltd.
creation
production
content of
producing zinc concentrates and
concentrates
which
actively' lead-copper
contained
about
1,000
tons
of
in the area.
Mining
mated
from
for
supplies and general merchandise
Dividends From 5 to 10 Years
Appear in the
changed
and
..
Listed Companies Which Have Paid Consecutive
Name
Heath
subsidiary,
a
also
are
searching for
newcastle.
Ltd.,
operate
the
property
and
plans call for sinking two shafts
including the old Pilley's Is¬
mine.
Another
promising
companies
of
Mines
will
a
producing ore at the rate of 10,000
tons a day and that this would in¬
Loblaw
Steele
16-square mile concession around
and
pilot mill
American
Also,
*
.
33
"self-serve"
Second Table
northwest
expected to bring
company
150-ton
a
operation.
covery of extensive deposits on its
Little
River
property 30 miles
Newfoundland
further
and
'
.
Loblaw Groceterias Co.,
Ltd. "B"
grocery
0.03
in
assured
companies
the
Anacon
prospect is the Independence Min¬
development
will ing
Corp. ground, acquired by
confirm the early promise of this
Boylen's
Nama
Creek
Mines,
area it desires to be in a
position where over 100,000 tons of ore
to give prompt service to interests have
been proven grading 2.38%
that are developing. the
property copper and 6.8% zinc. Five other
that
10
trade
of
is
ticipated
-
&
Ltd
field.
brought
into
Metal Co. Ltd. announced the dis¬
Boylen
entered
3.50
gold producer
chain
Other
also
copper
0.24'
relatively
Bros., Ltd
Operates
rate
day. CNR
a
—the
wadge
______
Wholesale hardware
Eastern Canada
next
the
justifies its expenditure of nearly
$4 million for this spur on the
Shops,
candy chain in Ontario
Ontario
Lewis
carloads
at
grounds that while only one large
Candy
Gold Mines
20
the^e
out
1.9
—
Quebec
Leitch
to
plant
ore
17
Ltd._:_
Ltd.
Retail
15
move
5.40
Canadian $ *
Quebec gold producer
Secord
milling
to
0.10
-
Lamaque Gold Mines
Laura
the
year
38
—
Mines, Ltd
Ontario gold
-
Quota-
12 Mos. to
•
and
% Y.eld
Extras for
secutive
Years Cash
of their extensive zinc-lead
low copper deposit in the Bathursi
area.
The company , sunk a shaft
year
*
-
29
our
Head Office—Toronto
Business
New York
•
San Francisco
Seattle
Toronto.
and
more
•
•
Los
Angeles
Portland, Ore.
than 700 Canadian Branches
{
30
(1302)
*
Continued
The Commercial and Financial Chronicle
,
from
Waite
29
page
Amulet
Mining
Mines, Quemont
East Sullivan
Corp.
producing
copper.
of
Brittannia Min¬
In Manitoba, Hudson Bay Min¬
treated ing & Smelting last year produced
and over 45,000 tons of blister copper
Grandby
Consolidated
Mining, at Flin Flon and brought into op¬
Smelting & Power Co. Ltd., 1,871,- eration its Schist Lake mine from
&
Smelting
916,419 tons of
862
Co.
ore
Ltd
last year
tons.
shipped more than 53,000
ore
averaging
5.23%
copper and 7% zinc to the Flin
By far the most important de¬ Flon plant for
treatment.
The
velopment in B. C. is the opera¬ company also carried on develop¬
tion of Granduc Mines Ltd., con¬ ment at its North Star mine and
trolled jointly by Grandby and at Don Jon Mines Ltd., a Hudson
Newmont Mining Corp. on a vast Bay subsidiary.
In Saskatchewan, Hudson Bay
deposit of ore averaging 1.5%
copper
25
miles
northwest
of also carried out exploration and
Ten Million Ton Ore Find in B. C.
Stewart
in
country
almost
few
a
inaccessible
miles
of
east
the
Alaska boundary. As of the be¬
ginning of this summer, explora¬
tons
development
underground
Birch
mine
its
its Corona¬
Lake mine and
tion
at
level
Manitou
year.
Ltd., 25 miles east of Hope, where
some
ore,
million
3.5
containing
tons
of
copper
gold
some
and
silver, has already been indicated.
Exploration has also been carried
out
9%
respectively,
had
the property
on
Copper
Co.
of Duncan
Ltd.,
on
miles
Ore
000
miles
west
Some
Vancouver's Island.
the
Whitehorse.
as
of the end of last
were
estimated at 500,-
tons, averaging 1.34% copper
and 2.14%
of Cowichan
30
there
year
of
northwest
reserves
Years Cash
in
Copper
Province
worth
in
developments
of
noting.
miles
north
Some
Quebec
are
Noranda
also
Mines,
on
&
arena
of
operates
be'
members:
1
past
Complete
and
ments
The Investment Dealers' Association of Canada
and
officials
have
Corporation Securities
since
increased
the
39
General
supply
the
known
in
21
Ltd—
1.25
b34%
3.6
house for many
Quebec
,
in
4.7
S9.95
17%
5.7
2.00
38
5.3
22
locomotives
f 1.30
39%
3.3
and
production
/
Refrigerating &
general
warehouse
Moore
25%
10
Ltd. "B"_
brewer
Diesel-electric
Montreal
1.20
11
Canada
Locomotive Works,
Montreal
related
4.5
f 1.00
and operates line
Western
Molson's Brewery,
Montreal
22
10
—
_____
grain
elevators
300
&
cold
storage
Montreal
In
Corp. Ltd
forms,
advertising
dis-
/
play products, etc.
National Drug and
Co. of
Chemical
15
of
drugs,
chemical
0.70
13%
5.1
14
Canada, Ltd
Wholesaler
them
0.75
17%
4.2
&
general rarechandise
National Grocers Co., Ltd
Ontario grocery wholesaler
of top
♦
engineers,
Quotations represent June 30.
*
30,
t Adiusted
of
1955 sale prices or the last sale
quotations are as of
to that date.
Bid and ask
1955.
Add current Canadian Exchange Rate.
prior
price
June
year
reserves
3.4
10
Corp., Ltd.
Deals
the combined
of last
87
Midland & Pacific Grain
drill¬
for
3.00
Eastern
industries in
copper
diamond
first
2.8
gold producer
Storage Ltd.
consulting
40
.
Mitchell (J. S.) & Co.,
aver¬
in the capacity
or
1.10
■
-
Ltd.
selves, for the government or for
times even
Government, Municipal
9.2
production, refining &
Ontario
private mining companies, some¬
Canadian
10%
Mclntyre Porcupine Mines,
Churchill.
working
0.60
imple¬
line
of
farm
machin?ry
distribution
prospectors and geolo¬
either
4.9
10
Ltd.
Oil
corpn. limited
gists,
5.00 bl02%
McColl-Frontenac Oil Co.
Operates
summer,
of
efforts
3.8
t
Business
this
13
motion picture
Massey-Harris Co., Ltd
platinum has been
from
0.50
theatres
including what results will
obtained
5.8
11
Theatres, Ltd.
Owns two Toronto
indicated there.
Not
22%
milling;
flour
handling;
Marcus Loew's
north¬
ore,
nickel, 0.81%
and 0.03 ounce
1.30
10
Maple Leaf Milling Co., Ltd..
ing, exploration and development
Midland Securities
10
sports
Toronto
name
same
Ltd.
of
tons
5.7
2.11
0.12
operation of bakeries, etc.
Bay
Fort
of
1955
—
12
Owns
Grain
the
Hudson
460,000
aging 3.3%
nickel.
other
Inlet
of
coast
1955♦
Canadian $ *
gold producer
Maple Leaf Gardens, Ltd
in the Province of On¬
tario, Sudbury Basin Mines, for¬
merly Ontario Pyrites Co., con¬
tinued exploration and develop¬
ment at its Errington & Ver¬
million
mines
in
the
Sudbury
Rankin
June 30,
16
Ltd.
Also,
near
Paymts. to
June 30,
30,
1955
—
Ontario
Bay
Hudson
June
Based on
tion
Madsen Red Lake Gold Mines
"copper" zone.
or
Quota-
Extras for
12 Mos. to
Divs. Paid
,
property in Montmagney County.
The company deepened its shaft
and found substantial ore in its
"south"
% Yield
Including
No. Consecutive
•
Appro*.
Cash Divs.
Metals
west
*■*}
AND FINANCIAL GROWTH
and 13V2
miles,
southwest of Flin
indicated the existence Flon. At the latter place, diamond
of 10 million tons of this ore but drilling as indicated a copper-zinc
by the end of the year the com¬ ore body of 825,000 tons. The com¬ area. Copper discoveries of con¬
pany
is confident it will have pany has planned a small mill for siderable extent were also made
near Tashota on the Canadian Na¬
proven probably as much as three its Coronation mine.
tional Railway and on Timagami
times this figure altogether. The
In the.Yukon Territory, Hudson
Lake.
company originally acquired this
Bay Mining & Development Co.
In
the
Northwest Territories,
property from Helicopter Explora¬
tion Co., Ltd. which now holds Ltd., wholly-owned subsidiary of North Rankin Nickel Mines, Ltd.
an interest in Granduc.
Hudson Bay Mining & Smelting, completed a 350-foot shaft and
carried out exploration and de¬
American Metal Co. is carrying continued
exploration
and
de¬
on
extensive exploration on the velopment of its Wellgreen Mine velopment on two levels of their
nickel-copper-platinum
property
property of Canam Copper Co. in the Kluane Lake district, 200
tions
29
page
29,1955
Mines resumed
Corp., Ltd. continued
explorations on its nickel-copper
ern
Thursday. September
CANADA'S INDUSTRIAL, MINERAL
centrate at its Suffield mine. East¬
Manitoba
in
Copper
is
a
last
operations at
which it
The province of course already
ing
on
Golden
develop¬
ment of a low grade copper de¬
posit north of its main workings
and prepared to commence regu¬
lar production of copper concen¬
trate.
Weedon Pyrite & Copper
Corp.
operated
a
300-ton mill
during the year and Ascot Metals
Corp. produced a lead-copper con¬
Coppei Mining Prospects in Canada
jrom
.
and
Mines all carried
high
Continued
..
for
stock
dividends, splits,
distributions, etc.
b Bid.
Continued
The Midland
member:
w
Company
The Toronto Stock
Stock orders executed
all
31
s
Includes
special distribution.
LIMITED
Exchange
on
on page
Canada dfets yw oEpotfanrfrj
Exchanges
Toronto, Ontario: 50 King Street West
London, Ontario: Huron & Erie Building
Sault Ste.
Marie, Ontario: 110 March Street
Montreal, Que.: 215 St. James Street West
St. Thomas,
Private Wire
to
Ontario:
354
Talbot
Street
Eastman, Dillon & Co., New York
CANADIAN
GOVERNMENT AND MUNICIPAL BONDS
CORPORATION BONDS AND STOCKS
TRADING
and here is the
DEPARTMENT
International Bank to
help
you
call
EMpire 3-7218
¥ith more than the U.S.A., and the West
Great Britain, 400 branches in Canada,
Indies,
WISENER
COMPANY
AND
73 King Street West
Telephone
Members
Investment
•
EMpire
Toronto, Canada
6-5251
Dealers' Association
Canada
•
you
an
A Partner in Canada's Growth
and with correspondents in other
International Bank
Branches Outside Canada
on
credit,
or
In Jamaica:
oilier
equipped to give
authoritative information and expert
guidance
of
International Banking requirements with:
countries—The Bank of Nova Scotia is in
fact
limited
Discuss your
any
of the
General Offices:
44 King St. West, Toronto
New York Office:
many
37 Wall St.
banking and financial problems and details
connected with Trade.
London Office:
-
108 Old Brood St.
Kingston and 16
branches.
In
Cuba:
Havana and 7 other branches.
In
Puerto
Rico:
San
Juan,
In
Republic: Ciudad
Trujillo. In Trinidad: Port
of Spain; and correspondents
Fajardo
and
Santurce.
Dominican
all
over
the world.
[Volume 182
Number 5468
Financial Chronicle
The Commercial and
.
.
.
Continued
CANADA'S INDUSTRIAL, MINERAL
Approx.
Cash Divs.
No. Con-
June 30,
June 30,
1955♦
1955
Quota-
12 Mos. to
secutive
Years Cash
June
30,
1955
Divs. Paid
—
National Steel Car Corp., Ltd.
tion
% Yield
Based on
Paymts. to
Including
Extras for
Canadian $ *
6.7
trust
business,
39%
1.35
^7
3.4
Weaving
6.3
40
2.50
22
wire mesh,
gold
3.5
54
1.875
26
producer
Normetal Mining Corp., Ltd._
10
0.36
4.75
17
0.02
0.61
3.2
Quebec copper and zinc producer
O'Brien Gold Mines, Ltd
Quebec gold producer
Ogilvie Flour Mills Co., Ltd..
Mills
3.6
42
1.50
53
flour, feeds, and cereal?
Ontario Loan and Debenture
tures;
deposits
in
Ontario
first
Products
Steel
Co.,
springs,
plastic products
bumpers
&
and tubing
pipe
Paton Mfg. Co., Ltd
17
b9
8.9
49
Penmans Ltd.
Woolen,
0.80
3.00
57%
and
cotton
22
2.00
20
40
0.10
Pickle Crow Gold Mines Ltd.
Ontario
34%
2.00
23
Ltd
5.8
a
interests
Co.,
West
3.2
on
coast
19
A
utility holding
engineering co.
Premier Trust
management
2.00
59
3.4
11
Power Corp. of Canada, Ltd..
Operates
52%
1.70
18
Ltd
Largest producer of newesprint
the
4.00
75%
5.3
&
Co..
trustee etc.
16
12
9.55
0.08
2.00
0.8
producer
gold
Price Brothers & Co., Ltd.—
Newsprint and
related
567/8
3.5
products
Quotations represent June 30, 1955 sale prices or the last sale
price prior to that date.
Bid and ask quotations are as of
June
*
Add
30,
1955.
current
Winters,
Y.
R.
(Special to The Financial Chronicle)
P. D.
securities business from offices at
1441
Lanphere Opens
SPOKANE, Wash.
Irving Avenue.
—
Percy D.
Lanphere is conducting a securi¬
A. G. Evans
Opens
ties
ties
offices here.
business from
NIANGUS, Mo.
Pittser
BALDWIN, N. Y.—World Wide
Investors Corp. has been formed
offices
Avenue
to
at
North
194
engage
in
in the
C. M. Pittser Opens
World Wide Inv. Corp.
with
offices
business from
Empire State Building.
PATERSON, N. J.—Alexander
G. Evans is conducting a securi¬
is
Chester M.
—
conducting
a
securities
business from offices here.
Grand
securities
a
John Riley Forms Co.
business.
(Special to The Financial Chronicle)
With Kentucky Co.
LEXINGTON, Ky.
(Special to The Financial Chronicle)
LEXINGTON, Ky.
of
The
—
Kentucky
Philip H.
John W.
business from offices at 314
the staff
Company,
—
Riley is engaging in a securities
Ashland
Ex¬
under the firm
John W. Riley &
change Building.
South
name
Company.
R. A. Daly & Company
Limited
sinking fund 47/s% bonds due Oct.
Members
1, 1970, at 98.69% and accrued
interest, to yield 5% to maturity.
While the company was
The Investment Dealers' Association
The Toronto Stock
organized
Canadian
Exchange Rate,
of Canada
Exchange
in 1923, this is the first public
offering by the company on any
debt
otherwise,
or
underwriters
in
history.
IN
canadian
proceeds from the sale of
the bonds, together with proceeds
from the concurrent sale of 503,155
and
dealers
government,
municipal
Net
shares
of
stock
common
to
corporation
and
securities
com¬
Private wires to Montreal and New York
shareholders, will be used by
the company to prepay in part a
5% first mortgage note, due March
mon
♦
Sidney
and
Y.;
Abraham & Co., New York, N.
GLENDALE, Calif.—Ansgar M.
Christensen, Jr., is engaging in a
Sept. 23 offered $30,000,000 of
its
Preston E. Dome Mines, Ltd.Ontario
N.
Detroit Steel Corp. first mortgage
securities,
trust company,
as
members: Jacob A. Gold-
new
Md.; Robert J. Marony, New York,
S. M. Christensen Opens
who
of 60 underwriters
group
on
River
pre¬
Mohawk
Valley Investing Co.
copper
Directors
Halsey, Stuart & Co. Inc. headed
Investment—holding co.—gold
Powell
was
with
connected
14.
farb, President, Union Underwear
Co., Inc., New York, N. Y.; Louis
A. Green, Stryker & Brown, NewYork, N. Y.; William E. Kidd,
Stein Bros. & Boyce, Baltimore,
153 San-
viously
to
Corp. 4%% Bonds
8.1
1.23
gold producer
Placer Development,
five
securities
a
9
elected the following as the
etc.
photography,
Orders executed
on
all Exchanges
31, 1959, held by the Reconstruc¬
b Bid.
Continued
tion Finance Corporation, the bal¬
on
page
32
of
ance
60,000
shares of 6% cumulative preferred
stock of the company.
The bal¬
ance of the
net proceeds will be
added to the general funds of the
company and used to reimburse
its treasury for capital expendi¬
LIMITED
issuance
Underwriters and Distributors
of
Canadian Investment Securities
The
at
will
bonds
the
for
Direct private
wire to Oppenfteimer, Vanden Broeck &
120 Broadway, New York
Co.,
plant im¬
Underwriters and Distributors
option of the company at
prices ranging from 104% to 100%,
and for the sinking fund at 100%,
Since 1921
'
MONTREAL
MArquette 8038
additional
redeemable
be
414 ST. JAMES ST. WEST
WEST
TORONTO
EMpire 4-4441
of
tures in connection with
provements,
and
working capital.
44 KING STREET
retired
being
note
the
through
McLeod,Youhg,Weir & Company
the
Government of Canada Bonds
/
Provincial and Municipal
plus accrued interest in each case.
...
offers
sinking fund calculated to re¬
tire 93%% of the bonds prior to
A
complete facilities for serv¬
requirements
of American investors seeking op¬
portunities to invest their funds in
established Canadian companies with
growth potential.
Our facilities include
Debentures
Treasury Bills
maturity will be provided, pursu¬
ing 1969.
icing
wire
the
investment
service
cities
of
Boston
to
private teletype
in principal
offices
Canada
and
The
to
First
Corporation, New York.
ant
which
to
chased
or
will
there
be
principal amount of the bonds on
before Oct. 1, 1956 and a like
Statistical information on Canadian
principal amount thereafter on or
before each Oct. 1 to and includ¬
ties
Detroit Steel
chase
Corporation's
totaling
the
$5,909,299
MONTREAL
OTTAWA
LONDON
HAMILTON
KITCHENER
QUEBEC
WINNIPEG
CALGARY
SHERBROOKE
NEW
YORK
1952).
cash amounts
were
affiliate Member Corporation.
etc.,
Direct private
wire with Goldman, Sachs
Street, New York
& Co.
30 Pine
at
the
Works.
investment of
Portsmouth
Since that time, an
$64,000,000 has been made in the
Portsmouth
Works,
Equitable Securities
Canada
LIMITED
paid for
inventories, prepaid insurance,
EMpire 4-0161
VANCOUVER
our
being 578,578 shares due to
At the same time net
CANADA
through
of the
the 100% stock dividend in
50 KING STREET WEST, TORONTO,
pur¬
supplied promptly on request. Orders
executed on the Toronto Stock Exchange
properties at Ports¬
mouth, Ohio, was made in 1950,
alent
Head Office
Securi¬
or
payment being made in the form
of 289,289 shares of the company's
common stock (the present equiv¬
Inquiries invited
Corporate Bonds and Shares
pur¬
$2,000,000
redeemed
largely
of
Corp.,
Offers Detroit Steel
5.0
engravings, electrotypes,
commercial
have
ford Avenue. Mr. Brown
Halsey, Stuart Group
typersLtd
Photo
Reading
have announced that the board of
Francis J.
—
in
Barnes has been added to
Electro-
&
Engravers
net
business from offices at
knitted
silk
goods
Photo
war¬
5.2
worsted fabrics
and
exhausted
second look.
a
the
corporation's
CLINTON, N. Y.
Mines, Ltd., Quebec Nickel Corp.,
Ltd., Rainville Mines Ltd., Vir¬
ginia Mining Corp., Ltd. and Wilroy Mines, Ltd.
4.3
70
3.00
30
Page-Hersey Tubes, Ltd
Woolens
5.0
28
1.40
18
Ltd.
Automotive
Industrial
3.9
sells deben¬
mortgages
&
invests
28V4
1.10
85
Co.
Accepts
to take
the
President
Fox,
and
were
Brown is engaging
Among companies with nearproduction-stage
copper
mines
and among those doing explora¬
tion and development on mining
properties with proven reserves
are
Berens
River
Mines,
Ltd.,
Coldstream Copper Mines, Ltd.,
Ungava Copper Corp., Ltd., Cowichan Copper Co., Ltd., Grandines
Mines
Ltd.,
Joliet-Quebec
Mines, Ltd., Kilembe Mines, Ltd.
controlled by Frobisher, Krishna
Copper Mines, Ltd., New Highbridge
Mining
Co.,
Nippissing
7.6
1955,
G.
Philadelphia
the six months ended June
directors from
It sometimes
search.
Edward
F. J. Brown Opens
Offsets, Ltd., Nickel Rim
Mines,
Ltd.,
Normetal
Mining
Corp., Ltd.
weaving machinery, etc.
and
wholly
in extent to
Elected Directors
ex¬
extent
some
Nickel
cloth, v.ire
Noranda Mines, Ltd.
Copper
To
previously
3*
$49,356,969 and net directors has adopted an amend¬
profit at $2,625,164, or $1.04 p^fi ment to the by-laws of the cor¬
common share.
poration increasing the number of
■
producers
are
Amulet Dufault Mines, Ltd.,
New
Ryan
Lake
Mines,
Ltd.,
Co.,
Ltd.
Makes
been
meagre
Among
advertising signs
Wire
too
pays
2.6
b39
1.00
26
30,
sales
represents reactivated
rant further
Canada Ltd.
Niagara
have
or
^
Neon Products of Western
Neon
For
than 110 million
more
Canada.
to
also
accepts deposits
by
in
of
isting facilities.
capacity, that is, tonnage brought
back to life, as it were, and some
of it expansion of deposits thought
etc.
General
copper
this figure
Railway cars, automobile chassis,
National Trust Co., Ltd
facilities but also in part for
new
30
page
Copper Mining
Prospects in Canada
tons
—
29%
2.00
19
from
modernization
AND FINANCIAL CROWTH
-i
<1303)
for
Members: The Investment
220
BAY STREET
Dealers' Association of Canada
—
Telephone:
TORONTO, CANADA
EMpire 6-1141
of
82
(1304)
T
Continued
The Commercial and Financial Chronicle
from
page
and
10
to
stabilize
foreign
currency
Continued
values.
The
New Patterns of World
to, devalue
pressure
Pound
is
in
stronger
even
the
in
Australia
feel
would benefit from
that
more
31
page
they
,
freedom
Cash Divs.
'
relatively large dollar and
gold reserves. But past ex¬
periences have proved
the
The
port
point that it is better to act
at
time of strength than of
British authorities
a
only
soften
will
Let
currency
and
me
which
be the
which
will
need
exchange than what is being
permitted by London. Their abil¬
ity to attract dollar investment
will
sup¬
rency
know
was:—
weakness.
fully
are
ioration
tions
i
to
a
aware
of the deter¬
of
underlying condimay easily lead
shrinkage of current re¬
which
serves.
With peace conditions
spreading
and
costs
of
expectation
of
future
freedom
ent
parity level
tionary measures
softness of the dollar and hardness
of
Sterling will be justifiable only
if you assume the following to
happen:
A Far Eastern war in
which
that
of
the
United
States
are
Provincial Transport Co
in¬
action.
This
without defla¬
drastic that
reduction
in
also
year:—
"You
in
commodity markets. Efforts to ad¬
will
America
have
than
more
inflation
in
Europe. The
softness of Sterling will disappear.
just such positions are now being
made half-heartedly. This also ap¬
plies to attempts to stop inflation
their
true
tionary
And
processes
let
that
and
received
Established 1909
months to
0.40
87
1.575
-
bl3%
3.0
-
57%
2.7
Manufac¬
and
screws
bolts
Royalite Oil Co., Ltd
Oil production and
■
.•
27
0.26
12%
2.1
20
0.80
16
5.0
22
0.06
19
__
0 50
development
Russell Industries
Ltd
Holding co.—machine
tool
interests
San Antonio Gold Mines Ltd.
Manitoba
1.65
.Electric meters,
motors,
11%
and
13
17
5.9
20
related
1.Q0
1.00
13%
7.6
49
bridges
1.45
65
2.2
pro¬
duction
Scythes & Co. Ltd
Manufactures
waste, cotton
cotton
wipers,
and
wool
etc.
Shawinigan Water and Power
Co.
Quebec electric utility
j
Sherwin-Williams Co. of Can¬
ada, Ltd.
will end shortly.
14
Paints, varnishes,
Beer,
ale,
beverages
stout
and
1.85
48%
3.8
28
enamels,
1.40
b28%
4.9
etc.
Sicks' Breweries Ltd
from
carbonated
.
Sigma Mines (Quebec) Ltd._
Quebec gold
Pole-line
and
18
hardware
also
'
.
(N.) Co., Ltd
companies;
wait for 2-3
"B"
line of dairy products
Slater
-
.
0.40
.
-
5
-
5.40
♦
ex¬
0.60
for
4.7
0.60
14%
4.2
.
18
metal
12%
-.
_
power
stampings
forgings
Quotations represent
price
June
*
on
Members:
page
33
A^d
prior to
June
that
30,
1955.
current Canadian
1955
Bid
date.
sale
and
prices
ask
or
the
last
quotations are
30,
Exchange Rate.
b Bid.
Toronto Stock Exchange
Investment Dealers' Association of Canada
Time Is
Toronto, Ontario
Money!
EMpire 4-5191
Private Wire to New
York,
Chicago, Albuquerque, Atlanta, Beckley, W. Va.,
Boston, Bradford, Pa., Charlottesville (Va.),
Cleveland, Dallas, Denver,
Detroit, El Paso, Harrisburg, Houston, Kansas
City, Los Angeles,
Minneapolis, Midland (Texas), New Orleans, Odessa
(Texas),
Phoenix, Pittsburgh, Portland, St. Louis, Salt Lake
City,
San Antonio, San
Francisco, Seattle, Tucson, Tulsa
Whether you are
New York
cities
or
cuted
stock
in Montreal^
of the other
any
mentioned
have
can
on
your
below, you
orders
exchanges within
a
Spence & Co.
•
■
«—•—
»s
j**!*
Our
-
direct
enable
any
private
you
to
Canadian
have
teletype
quick
security.
wires
to
on-the-spot
Remember
.
these
cities
information
.
.
time
is
also
about
money!
MUIs,SPe»ce&CW*
Limited
Investment Securi.
MONTREAL
NNn,EG
Canadian
TORONTO
m
■y/?\
Milner,
#
«
fA
40
MEMBER:
Adelaide
St.
West, Toronto,
INVESTMENT
DEALERS'
CANADA AND PRINCIPAL CANADIAN
Ontario
ASSOCIATION
STOCK
Trenton
Kitchener
Woodstock
Ottawa
Oshawa
Stratford
Kingston
Brockville
New York City
Buffalo
Welland
Niagara Falls
Hamilton
Hanover
Oakville
OF
EXCHANGES
BRANCHES AND CORRESPONDENTS
Montreal
exe¬
principal Canadian
ter of seconds.
Mills,
7.4
producer
Silverwood Dairies, Ltd.
Full
i
16
see:
Continued
)
'
•
Steel
,
switches,
Sarnia Bridge Co., Ltd
port commodities. The drop
Bay Street
4.3
etc.
infla¬
(1) future trend in price of
220
3.6
gold producer
Sangamo Co., Ltd
me
has decided to
-
3.9
Operates 796 branches throughout
world
.v:V
the
thinking
and
planning
of
monetary policies of the Govern¬
ment
in
his
country.
"At two
special secret meetings with the
economic
advisors, the Govern¬
ment
5.4
31
.the
respondent
MATTHEWS & COMPANY
of
range
Royal Bank of Canada
quote a report
my regular cor¬
in a certain Pacific
Dominicon country who happens to
be especially well informed about
I
now
13
1.20
14
(P. L.)
turing Co., Ltd
Wide
wage
values
"
♦
41
Robertson
mean
volved with Western Europe be¬
ing more or less neutral, but cer¬
ternational trade will have to tainly benefiting from a new rise realistic
to
assume
that
credit
of commodity prices and inflated
be expected for Britain."
squeeze
and
other deflationary
dollar spending. But in case of a
measures will go so far that wages
The Exchange Rates of Sterling
peaceful development, even if it will be
substantially reduced, per¬
is only temporary, then we shall
I
wish
to
haps under the pressure of new
state
that
current
have more inflationary pressures
mass
trends and events fully
unemployment. The rise of
justify the in Europe and the Sterling area
view that Sterling rates as used
Wage levels still continues, in
than in the U. S. A. and new seri¬
in international trade
particular in Great Britain, but
may have to ous balance of
payments difficul¬ also in
be lowered, indirectly or
other soft currency coun¬
directly, ties for the Sterling block."
tries.
depending on the extent to which
The vista of an ending of the
Britain will rely on new restric¬
Inflationary pressures are even
cold war in Europe and of the
tions or on relative freedom of
open hostilities
in the Far East stronger in Latin-America than
trade.
in Europe.
In Brazil and Argen¬
resulted in a reduction of inven¬
At this point I may quote an
Bolivia,
Chile,
Colombia,
tories and a decline of prices for tina,
argument I recently had with one
Paraguay, free market rates of
commodities, especially of stra¬
of the best-known and best-in¬
exchange are only a fraction of
tegic goods. We cannot expect a
formed monetary experts in Eu¬
official parities. But it is also un¬
return to another Korea boom in
rope—in Basle, Switzerland.
He the near future.
Surplus problems likely to believe that the rates will
said
to me
in January
of this are again pressing on international be adjusted in accordance with
duction in Britain rising more
competitive difficulties in in¬
0.70
1955
—
Operating public utility
levels. But
political-pressures against such a
policy are too strong. It is un¬
a
pro¬
1955*
Canadian $ *
v
Quebec Power Co
so
would
19
Paymts. to
June 30,
June 30,
Operates coach lines in Quebec &
Ontario
Based on
tion
30,
1955
—
only a very strong government
would dare to follow such a course
of
June
Divs. Paid
the pres¬
Quota-
12 Mos. to
Years Cash
exchange
at
% Yield
Extras for
secutive
'■
would be convertible. They
cannot be introduced
"Your
No. Con-
funds would improve if their cur¬
dollar."
tell you what my answer
Approx.
Including
of
^
Thursday, September 29,1955
.
AND FINANCIAL GROWTH*
ing commercial and industrial cir¬
cles
.
CANADA'S INDUSTRIAL, MINERAL
Aus¬
tralia than in Great Britain. Lead¬
Trade and Finance
from
.
Peterborough
St. Louis, Mo.
Owen Sound
St. Catharines
mat¬
sale
as
of
x
Volume 182
Number 5468
...
The Commercial and Financial Chronicle
.
Continued
CANADA'S INDUSTRIAL, MINERAL
Cash Divs.
Quotation
Paymts. to
June 30,
June 30,
1955*
1955
Extras for
12 Mos. to
secutive
Years Cash
June
Divs. Paid
Smith
Canadian $ *
Ltd.
in
nnXnc
—
flP
across
seven
Canada;
stations
1.60
20
daily
45%
3.6
®
y
Hf-
z-n
utility;
4.0
50
-
-
37
1.75
21
0.90
3.4
26%
in
all
branches
in
of
1.40
40
49%
2.8
1.65
45V4
3.6
16
0.80
14V2
related
5.5
petroleum
Ontario and
30
.'.i
products
0.80
21%
3.7
in
Quebec
Ontario gold producer
1.40
0.10
7.1
19
49 %
1.80
3.9
Operates chain of 103 drug stores
Quotations represent June 30,
June
*
Add
prior
30,
to
that
date.
1955
Bid
sale
and
prices or the last sale
quotations are as of
ask
Exchange Rate,
Continued
on
34
page
forms
t0e'
»
jVewU, sdUen iUnited
sometimes
on
a
group
low
official
tolerate
payments,
im-
of
area
basis
parity
markets
make
the
cially
frown
upon
govern-
the
apparently unusual forms of payment. I may refer, for example, to
the international switch trade. I
s^a^e without
r^iay
any exaggera-
tion that by opening up the
facilities for extensive international switch trade via Amster.
dam
may
in such
a
commodity suras especially
certain countries,
commodity prices
and
.
Rotterdam,
a
it
in
observe
an
international
Orthodox
times,
a
tends
were
trade
forms
usual
to
become
the
international
even
to
defend
tion
the
of their
international
industries
and
positheir
competitive
commodity
trades.
Then responsible authorities will
give more leeway and freedom
f0r forms of payments and transactions which
arg
unusual from
of the theoretician,
sary
in order to continue world
trade and exchange of goods and
the flow of capital. Life must go
0n
if official rules seem to
even
make it impossible. When economic life seems to come to a
standstill because of unrealistic
rates or restrictive rules,
the
authorities
will
tolerate,
then
authorize and finally officially
leSallz,e unorthodox payments,
We haye obserVed this sequence
many
countries and many
times. The belief usually prevails
in
that this will end after a short
Continued on page 34
in
of
and
The Toronto Stock
pay¬
new
Exchange
Canadian Stock Exchange
prewar
Calgary Stock Exchange
Edmonton
Stock
Exchange
pattern
and
payments,
if they are
nature,
system
3d 731
con-
Members:
overriding
becoming unusual and
pattern of the past rather
tory
v/eleft/one: Sm/tire
also
3. BRADLEY STREIT & CO.
are
of
am
Overriding Trend
may
as
form
CANADA
I
be made convertible
than of the future. What appeared
to
be
unusual
and
exceptional
TORONTO,
serious.
basic the viewpoint
insignificant in London, with the
financial recovery, more freedom
exchange has been restored
than in °fher European countries.
excopt Switzerland. But the final
step into complete convertibility
cannot be taken for the time being
even in Holland.
way.
ments,
cj? Canada
be
may
unusual forms of payments.
many
finance.
jfnvebtment Qea/erP S^tecciatiwi
only of a transi¬
they will lead to a
quite unlike the one of
EMpire 8-4831
RICHMOND ST., W.
80
pre-1914 days.
It
seems
perience of
can
no
rency
^yanc/i
of
appear
under rules which necessitate
but
We
^T/e ^/ciwnto Atoc/e &r/i aw<j[e
BROCK
disposal
pluses will
who thinks in terms of orthodox
monetary policies,
Transit trade in Amsterdam and
Unusual forms of payments acRotterdam flourished while it was complish something that is neces-
Then private enter¬
prise Will be offered opportunities
to act within freedom of exchange
trend
★
stage
condition for the quick postwar
recovery of Holland was created,
Many countries have used these countries, and also with the drive
possibilities of import restrictions f0r more foreign trade.—beyond
and multiple or fluctuating rates
in order to balance their foreign
payments and in order to par¬
ticipate in the progress towards
convertibility.
Even weak cur¬
An
BAY STREET
this
of countries, the authorities will seek
use
levels. Such
possible to,
Unorthodox
forms
of
interconvert currencies freely, but at national
payments are again being
rates which
may be
prohibitive
d
enlarged scale together
for the importer while they grant usfd °n a
enlar^ed scale together
a special incentive of the foreign
with the emergence of new foreign
investor.
exchange
difficulties
in
many
tdte/nleyi
73
of
ports and the establishment of a
variety
of
rates
of
exchange,
rencies
"v
•
But
adjust official currency values and
to find a new basis for a balancing
0f international payments. Then
1955.
current Canadian
b Bid.
200
authorities
free
26
'
Tamblyn (G.) Ltd.—____
price
the
unusual
with free markets and fluctuating
rates which are substantially be-
Sylvanite Gold Mines, Ltd.__
♦
countries but at
currency
Instead
Supertest Petroleum Corp.,
Markets
world-wide
a
together with restrictions
Com."
.
progressing convertibility
lubricants
products
"Vot.
.
same
new
extreme friction
afterwards
."
creasing. We should not expect a
return to the old forms of foreign
exchange controls and restrictions.
fiduciary business
Stuart (D. A.) Oil Co., Ltd.__
with
proceed
time balance of payment
difficulties still exist and are in-
steel
19
re-
London, the
shortly
have
and
not
are
or
will
now
soft
the
'
Sterling Trusts Corp
General
assurances
wares
Stee] Co. of Canada, Ltd
months
will devalue its currency.
trend of
production
1955
vinced that in most soft currency
three
or
Government
2.5
b71
business
Engaged
in
reserves
will end with the urgent need to
necessary
for
The impact on
We
small
of
especially from such a development.
Other
governments
offi-
two
elections, and
Stedman Brothers Ltd
retail
their international payments, perhaps also by sacrificing part of
their foreign exchange and gold
ments more than others, have seen
to it that their countries benefit
effective
endowment insurance
and
ex¬
fit fully from them. Some
ceived at Istanbul
of Canada
Wholesale
matter
a
;
foreign
new
capital
will probably
possible for most soft
countries
to
balance
currency
„
ments in dollars and transfer
"eedom M thealso
greater part of the
world. But it
is
and
next
2.00
South¬
Sovereign Life Assurance Co.
and
,
it
credits
So far, and very disappointingly,
the effect is negligible. If the situation does not improve within the
.*■
Co.,
33
Ltd.
,
prepared to bene-
-
Ltd.
Operating public
ern Quebec
•
and
„
■
Southern Canada Power
Makes
,
n
.
Life
.
of
make
huf ftparfUv1! fGingHsl+owly fact ,that ™ly .a relatively small
fn*or<;ed t0 an number of business executives or
tv6 Sf
bankers are fully experienced in
T^inffif?
recent tight- the use of the new financial techening of import restrictions, niques and are
radio
3
.
The effects of credit tight-
newspapers
operates
ic
,i„ut
(2)
3.0
t
Co., Ltd.-
Publishes
40%
1.20
commercial
ports
manufacturers
paper
Canada
Southam
'
11
1
arid
of available monetary
payments in the soft
scope
of
currency area.
Dollar aid and increased
Trade and Finance
(Howard) Paper Mills
Pulp
in
30,
1955
—
the
32
page
New Patterns oi World
Approx.
% Yield
Based on
Including
No. Con-
from
means
AND FINANCIAL GROWTH
33
(1305)
be
to
our
at
longer rely
values
least
an
ex¬
TORONTO, CANADA
generation that we
or
on
on
stable
straight
cur¬
pay-
Ojp'cei:
if.
150
l£ott,clon,
CHEAPSIDE
Sua land
VICE-PRESIDENT
PRESIDENT
^vuce S$. tAcrviS
Members
jfc/ui
j2f S^i/en
Toronto Stock Exchange
Montreal Stock Exchange
Investment Dealers' Assn. of Canada
SUPPORT
Winnipeg Grain Exchange
THE
DIRECTORS
Orders in Canadian securi¬
ties executed
3. -A. \Qoie
Q.
j.VMrooL P.JCMadey Q. Wj< Witch;
SbougL
Wc
Vit ieJ4.
Christopher WaUrolh, jr.
iner
RED
or
net
U.
on
S.
Private Wires
commission
funds
Toronto
CROSS
-»
Fort William
Watt
Watt
Port Arthur
Incorporated
London, Ontario
70 Pine
Bell
Street, New York 5, N. Y.
and Buffalo
System Teletype NY 1-374
Jrthur W. StriclJanJ PicharJ _J. Wolherdl
to
Montreal
basis
Affiliate of
Watt &
6-8 Jordan
Watt
St., Toronto
(1306) f
34
Continued
The Commercial and Financial Chronicle
jrom
such payments if you can convert
the
funds
into
dollars.
This
is
33
page
New Patterns of World
Trade and Finance
at
premium for the dollar
a
period with normal
intermediary
Types
of payments.
trade
But this requires an
inflation
of
end
realistic
at
freedom
and
rates
of
We
in
in
Are
This is
will
end
world
cient
not
our
a
with
ex¬
economy.
here
to
to
return
It
state
have
to
a
may
that
be
we
in prac¬
as
in
international trade dur¬
But it still plays
year.
considerable
role
in
many
pay¬
in trade
Japan,
Taiwan,
Brazil,
Argentina, Chile, Indonesia, Yugo¬
slavia, Turkey and Israel. Clearing
exchange funds derive
from
suffi¬
shall
bilateral
payments
whereby
fully
settle
acquainted with the forms of pay¬
ment which make it possible to
commercial
clearing
agreements,
countries
two
agree
payments
to
on
unusual to be treated in
maxi¬
mum
credit balance or swing in
favor
of
either
party.
Excess
deficits are to be paid in gold or
hard
currency.
But
the debtor
country usually finds it difficult
or
disadvantageous to pay gold
and hard currency. Then imports
books.
of
continue
national
and
trade
to
inter¬
extend
and
finance.
1 cannot
ence
quote a book of refer¬
the new commercial and
on
financial system. It is too new and
also has been considered as too
scholarly
give you a short
summary
of the new forms of
payments, but I must ask for your
indulgence if some of them seem
to be complicated. You may know
the saying: "Why make it simple
when
you
can
make
it
com¬
plicated?" Why take American
machines to Belgium when you
sell them to Japan? Or why pay
to Yugoslavia when you buy from
Brazil and owe money to them?
But
shall
I
often
it
is
easier
and
profitable to make it
plicated than simple.
more
the
accounts,
from
debtor
would
country
stricted
to
have
to
have
to
is not in
be
creditor
be
the
country
increased.
the
re¬
from
creditor
the
would
a
the
exports
or
debtor
often
with
This
interest of the
cases,
a
the
discount
a
you
able to
are
foreign
countries
also
Then
because
you
can
quire the clearing funds at
county with your dollars. A
tical example:
which
does
not
goods
your
com¬
dollars.
you
You
are
to
import
payment
able
to
ac¬
the
following
had
a
the
Japan.
She
credit
clearing
balance
of
U.
S.
been authorized
the
Japanese steel
a
to negotiate with
importer of the
American
payment
products
to
United
Third
Formosan
grant
the
to
firm
was
permitted
substantial
a
discount
to
for
Formosan-Japanese
(about
5%).
As
clearing
result,
the
a
American
importer was able to
purchase the Japanese steel prod¬
ucts
at
the
transaction
above
made
was
Letter
discount.
on
in
on
your
pondent
whether
in
the
country
which
London,
Toronto
elevators,
Toronto Iron
Investment Dealers' Association of Canada
Steel
plate
Mortgage
Lends
on
first
debentures
Hag
against
bilateral
accepts
Operates 34 motion
in
Montreal
multilateral
The
payments
argument
investment
plate
Cotton
picture
and
reminds
Hamilton
raining. The problem is what
Kitchener
London
be
be
done
sunshine
about
the
underlying
fact
that
payments
usually
it
is
it
when
and
reasons
raining
agreements
are
an
also
it
the
on
&
1.00
15
6.7
16
0.045
1.03
4.4
'
20
0.60
12
5.0
'
.
Mines, Ltd
16
1.40
14
10.0
/
20
4.00
73
5.5
15
1.40
24
5.8
19
1.00
24
4.2
23
0.80
b24y2
3.3
26
1.00
94y2
1.1
25
0.12
15
liquor
0.975
,
in¬
sheet
metal
Canada
Breweries,
Ltd.
western
Westminster
provinces
Paper
Co., Ltd.
"B"
Wide
of
range
paper
specialty
products
Weston (George) Ltd
Fine
biscuits,
bread,
cakes,
con¬
fectionery, etc.
Wright-Hargreaves Mines,
I
Ltd.
Ontario
2
6.0
26
3.7
gold producer
is
Operates chain of specialty stores
across
the
Canada
W..--
♦
and
Quotations represent June 30, 1955 sale prices or the last sale
price prior to that date.
Bid and ask quotations are as of
June
solu-
„
35
30,
1955.
* Add current Canadian Exchange Rate,
Asked,
b Bid.
Members Toronto Stock
Brawley, Cathers
3.2
steel
Zeller's Ltd.
page
22
(Hiram )-Gooderham
Serves four
a
Continued
0.70
and goods
yarns
Manufactures
Bilateral
emergency
15
terests
can
were
3.3
man¬
welded
& Worts, Ltd
Holding co.—extensive
about
for
bl8
6.2
gold producer
Walker
facilities.
me
of
should
0.60
10y2
Que¬
Quebec copper-zinc producer
and
Dominion Bank Bldg., Toronto,
Telephone Em. 3-9161
31
4.6
thea¬
other
of
trust
and
Waite Amulet
who preached that there
someone
0.65
115
"
Corp.,
Wabasso Cotton Co., Ltd.____
switch deals. The critics point out
Toronto Stock Exchange
5.25
10.
issues
3.7
cities
Ontario
the need for multilateral trade and
Member of the
37y>
deposits
Upper Canada Mines Ltd
fixed.
agreements
1.40
56
Co
mortgages;
and
Ltd. "A"
computes
individually
72
4.3
-
products
or
is
23
,
Toronto
your own, too, and
be arranged in a legiti¬
often
1.00
special
and
Toronto General Trusts Corp.
General fiduciary business
Much has been said and written
Cochran. Murray 6
10
Works, Ltd
products
Western
rate
4.8
agement type
the rates and issues average mar¬
ket
conversion
rates, the final
•
16V2
metals
An
foreign corres¬
foreign consent
organization
own
0.80
manufac¬
Westeel Products Ltd
my
3.0
17
Ltd
feed
which buy and sell
clearing funds at a rate. Though
Member
46
Holding co.—insurance interests
interest of the foreign
rangements
1.375
turing and vegetable oils
mate way. There are switch firms
which
make
all
necessary
ar¬
Limited
98
Eng.
Elevators,
Grain
and
can
3.9
branches,
448
in
in New York and 1 in
1
United Corporations Ltd. "B"
is requested for transactions which
are
Canada,
bec
the
or
al5^
450
Operates
United Canadian Shares Ltd.
official
initiatives
your
0.60
clothing
Toronto-Dominion Bank
tres
Very often, it depends
own
fine
of
United Steel Corp., Ltd.
with
4.0
3.3
grocery
of
United Amusement
to make special
for such transac¬
accordance
ingenuity of
chain
Manufacturer
necessary
arrangements
39y2
8
manage¬
73
1.60
21
the
0.26
10
of
27
31
trust
Tip Top Tailors, Ltd
Steel
is
5.0
stores
The
Formosa to Japan.
It
3.00
type
Operates
Credit
of
—
In¬
Thrift Stores Ltd
back-
a
1955
Canadian $ *
Paymts. to
,
General
vestment Trust Ltd
The
Formosa.
June 30,
1955^
0.15
30
Canadian
Investment
to
States
June 30,
Mines,
Ltd.
make
Japan within the
Formasan-Japanese
clearing,
in
return for a payment from the
tion
June 30,
1955
—
Gold
% Yield
Based on
Quota-
Ontario gold producer
ment
Formosa-
in need
was
regulations.
-
\
dollar funds. Formosan firms have
tions
Cochran. Murratj £ Co.
Divs. Paid
Teck-Hughes
Extras for
12 Mos. to
secutive
Years Cash
prac¬
Formosa
manner:
substantial
within
Appro*.
Including
dis-
a
Japanese steel products are im¬
into the United States in
in
accept
Cash Divs.
No. Con-
at
may
want
against
AND FINANCIAL GROWTH
ported
to-back
simply
or
...
CANADA'S INDUSTRIAL, MINERAL
pur¬
commodity
basis. A
impos¬
US L/C was opened to Formosa
benefit
amount
from such a situation. You may be for the
agreed less the
offered payment in clearing surplus discount, and on the basis of the
funds by a country which has such U. S. dollar L/C, a clearing L/C
for the full value was opened by
clearing
funds
available
and
two
sible.
,
a
case,
chase
arrangements and
with
33
page
a
clearing cou^ry
may
agree
to sell its produbhs
against receipt of clearing fund\
though the final destination ofi
the goods is the dollar area.
In'
such
ments
structure of
ourselves
make
described
may
ing the last
pattern of
world trade and finance, and that
we
be
use
clined
old
the
now
(1) Clearing and Switch Ex¬
change. Its use has somewhat de¬
time.
new
are
lows:
Transition Period
a
Payments
types of unusual
tical
of
period of transition. It
a
Unusual
new
payments which
change. Unfortunately, we are not
living in such a world today and
we may not have a chance to see
it happen
of
The basic
or
from
Thursday, September 29,1959
discount for the soft currency. In
other
unrestricted so-called usual forms
Continued
being done by the switch trader
or banker.
But you will have to
consider that these clearing funds
will be converted into dollars only
...
Exchange
Company
Members
Investment Dealers' Association
0} Canada
Toronto Stock
GARDINER, WATSON AND CO
Exchange
EM 6-9211
•
44
%
T
^
" "
King Street West
Toronto, Ont.
*
CANADIAN
GOVERNMENT-MUNICIPAL-CORPORATION
Members
SECURITIES
of the Investment Dealers* Association of Canada
•
GARDINER, ANNETT LIMITED
CANADIAN
BANK
OF
COMMERCE
BUILDING
EM 4-9271
EMPIRE
3-5821
330
TORONTO
j
Bay Street
Toronto, Ont.
Number 5468 .V. The Commercial and Financial Chronicle
Volumes 182
Continued
TABLE II
.
,*o
from
page
U. S. Government
Trade and Finance
'
.
disposal
of
highly competitive
surplus export goods. I also re¬
mind you of the fact that right
now you are able
to export agri¬
cultural surplus goods held by the
34
New Patterns oi World
LISTED
3T
(1307)
agencies,
on
the
basis of barter deals whereby pay¬
ment is being made through*
counter-supplies of a commodity
commodity to buy a. cer- which is wanted by the governof one country to offer payments tain amount of export goods for ment as a strategic article,
in any acceptable currency, and of sale on the world markets. I wish
Tt
*
m
i
t
the other country to sell its prod- to quote a practical example from
!;S- ,
tunas lit
uefs on a traditional export mar- the issue of International Reports
.rt transitions.
In many
ket against receipt of acceptable of Sept. 2:
^
government* will b J
or
convertible funds. It is per"Restricted special accounts in
Iji
I Sr fu
e ^
CANADIAN
...
tion
as
the result of the inability
currency
*
Common
fectly true that these bilateral
agreements violate the spriit of
world trade. But no foreign trade
at all is not a solution of the prob-
On Which
CONSECUTIVE CASH
DIVIDENDS
the
Cash Divs.
secutive
Years Cash
-
June
&
raw
50
of
or
sugar
more
Canadian $ *
—
3.6
33
&
sugar
Quotations
price
that date.
3.0
&
represent June 30,
prior to
30,
23V4
0.70
9
co.—manufacturing
merchandising interests
Add
4.2
12
pro¬
Investment
June
0.50
5
cane
grades & pack¬
Argus Corp., Ltd
*
1955
Atlantic Sugar
duces
♦
June 30,
allied products
Refineries Ltd.
Refines
ages
Paymts. to
1.20
7
Acadia
tion
1955 ♦
Paper Co.,
Ltd.
Newsprint and
Based on
June 30,
30,
1955
—
Power
Quota-
12 Mos. to
Divs. Paid
Abitibi
Approx.
% Yield
Including
Extras for
1955
Bid
the last sale
quotations are as of
sale prices or
and
ask
1955.
current Canadian
Exchange Rate.
Continued,
such
more
deals
are
made
the amount of the
on
page
36
Industrial, Mining and Oil Securities
/o\
pPiVJ1fA
pipi,r!*ifr«
troduced
define
this
nr
accoLts
modity exchange
term
domestic
in
*»nm
a
to
order
account
which
for the disposal of
commodity clearing exchange
count(4)
(SePl- 2~P- 115->
Barter
Members:
Calgary Stock Exchange
Winnipeg Grain Exchange
King Street West, Toronto—EMpire 6-9971
Rouyn, Val d'Or
Private wires connecting Branch Offices, New York and all other
There
are
proceeds in such a country
ex-
many
leading Exchanges
a
government had surplus products
and not enough dollar funds in
order to pay for vital imports. The
Government could not adjust the
rate of exchange in view of in¬
flated domestic price levels. Ac¬
cording to my plan it was possible
for the American company to fi¬
nance exports of capital goods to
the country on a large scale. Pay¬
made
in
as an-
J?
regain
value,
£
i
substantial invest-'
times the price
it would have at home, and the
returns may be very substantial.
There may also be chances for a
ment
a
many
liberalization
of transfer
rules
teresting
to export such capital
long-term investor who
to take a great foreign ex-
goods
as a
seems
everts
ever, is
set
able'
able
to'udvalutayiost°a^I
to upvalue a lost as¬
much that the real foreign
so
exchange or currency risk be¬
comes negligible.
I know of coun¬
tries
where
American
investors
have built up a great stake with¬
out
heavy financial risk though
transfers are possible
a
restricted
,
xxr<uinu
.
r
T?
_
p
cootvl
2L JV
A?®
TTnnJiS flrnlc JnovSinte Ij'
jfjp Snw
ii«a2
inprpncintviv
*mance are J10w increasingly used
Continued
on
page
BICKLE
COMPANY
INVESTMENTS
domestic
G. L. JENNISON
E. W. BICKLE
J. E. KENNEDY
T. G. DREW-BROOK
HUGH C. CAYLEY
PHILIP C. TIDY
C. R. SLIPP
MEMBERS OF THE TORONTO STOCK EXCHANGE
44 KING STREET
WEST, TORONTO
ac¬
counts of the soft currency coun¬
The
Government
had to
permit the use of these accounts
for the purchase of their export
goods which could be sold in the
United States and the proceeds
were
available to the American
firm. These accounts could also be
sold to interested American im¬
try.
port firms, but this had to be done
at a heavy discount in order to
make the export goods competi¬
tive. The loss was made up for
the
sale
in
transaction
SPECIALIZING
IN
CANADIAN MINING SECURITIES
first part of the
sale of the capital
the
—
goods to the Pacific area country.
The Government itself indicated
that
it
preferred
this
procedure
because it found it inopportune
to
adjust the domestic price for the
export product or the rate of
exchange.
(3) At present, many countries
seek to promote sales of their sur¬
plus goods or to make their sur¬
plus goods'more fully competitive
through "link deals." They usu¬
ally compel the supplier of a
hard
Cradock Securities Limited
170
BAY
STREET
•
TORONTO
Members: Toronto Stock
1
Exchange
Canadian Stock
•
TELEPHONE EM. 3-4236
•
Montreal Stock Exchange
Exchange
MONTREAL: 455 CRAIG ST., W.
—
-J
Private
Wire:
—
at
You will find it in¬
later date.
a
practical ex¬
proposal to be made to a certain
country in South-East Asia. The
was
5J®
may
WILLS,
perience. One of my clients, a
banking and commercial institu¬
tion asked me to help them with a
ment
Yet,
jovestment, with excellent specuposs'bilities. In such a counTT?/+Ci!i owl?
and
&
Let me tell you
Offices: Hamilton, Kirkland Lake, Timmins, Noranda,
convert his foreign account,
accounts.
from sale of sugar at a dis- you may. consider to leave the
funds.
11
port
financial organization to cover the without payment in dollars.
In- loss
I
be granted
the
Canadian Stock Exchange
funds will
(6) Investment up-valuation
contract must
Compensation
originates from payment in the deals. I take it for granted that
currency of the importing country you are fully acquainted with the
where the exporter can use the nature of such transactions.
The
account only in order to finance authorities of a country which is
the
purchase and shipment
of in urgent need of certain import
export goods. Often, the type of articles and which has not the
goods which may be purchased means of payment will offer paywith such an account is sped- ment
in kind,
i.e. with export
fically fixed. The export proceeds products. You may not want to
will be available in order to pay handle the disposal of such goods
the original exporter of the goods, because you are not familiar with
It often happens that the export the market for them.
In such a
goods of the debtor country are case, you may make arrangements
over-priced. In such a case, the for the transfer of your claim for
owner
of
the
commodity
ex- counter-supplies from the other
change accounts will have to carry country to an importer of the coma
loss when he sells the export modity. He will have to pay you
products abroad.
He does
not the dollars you expected to get
necessarily have to be the im- for your original sale.
But you
porter himself. He may simplify may have to act on the basis of
his task by selling the funds to a barter rate of exchange with
other parties which are in the a discount for the foreign
curtrade—for instance, American im- rency in order to make the sale
porters of the corresponding com- 0f an overpriced foreign commodmodifies. But such funds will have ity attractive. Such barter or comto be sold at a discount sufficient pensation deals are again becomin order to make over-priced for¬ ing fashionable in support of the
eign goods competitive. These dis¬
counts or losses are usually more
than compensated by the profit
made in the first part of the trans¬
action. Many firms realized a very
handsome profit after having de¬
ducted the loss from the discount
to
Toronto Stock Exchange
^
j?®
j?£ij^®
discount of about 1%.
possible, the easier it becomes for be taken by the French group in countries in the world with strict
the
clearing countries to settle the form of surplus sugar ($17 foreign
exchange
controls
and
their clearing balances and to re- million—-50% this year, 25.% one perhaps unstable currencies.
On
turn to multilateral trading and year later, 25% another year la- first sight it may be too risky to*
ter). The commission enables the export goods to such countries^
payments.
5 to 10 Years
..
a
deals, on the other The interested group is financing
hand, permit the multilateral use the contract of a French indusof bilateral clearing funds, and trial corporation with Cuba. Twice
Have Been Paid From
No. Con-
at
sugar
Si1?i°n5*
Switch
lem.
*°*paym^2
e
Cuba to be used exclusively for
export of sugar will be converted
into hard currency by offering
UNiversity 6-5305
•
New York &
Montreal
36
36
The Commercial and Financial Chronicle
(1308)
Continued
from
page
Boston Sees. Co.
35
New Patterns of
World Trade, Finance
Opens
Thomas B.
ness.
is prin¬
Boston
as
help to move overpriced
domestic surplus stocks or to fi¬
nance additional imports.
But he
may
listen to proposals which cir¬
which
difficulties
these
cumvent
and
helpful to the country.
This is a great opportunity for
the ingenious imaginative expert
who may have the inventor's spirit
in the old sense, who also has dar¬
taking undue
engages
in financial
who
which
risks,
risks
to be too
great for an
businessman,
but who has sufficient knowledge
of the situation in foreign coun¬
tries and of the interests involved,
seem
banker
orthodox
in
order
than
Of Garrett Bros. Inc.
with
means
the
been
elected
Chairman
of the Board of Garrett
Bros., Inc.,
Kirby Building.
iary
calculate
to
risks
to
L.
to
and who is able to conceive
implications
or
of
Calif.—Er¬
HILLS,
Chandler
the
staff of
has
Real
been added
Property In¬
impact
or
of
changing policies in
was
Three With Daniel Weston
respect
HILLS,
Calif.—
Fleg, Cynthia R. R.
F.
and
become
Howard
affiliated
Mr.
Drive.
with
have
Daniel
Fleg
was
formerly
Investors
American
in
our
its
and
Stock
capable
Portland
1950 for
Canada
an
ac¬
9
the
6
Investment
Toronto
Dealers'
Stock
industrial
Assn.
of
to
Canada
St., Toronto
EMpire 4-8471
•
3.25%, according
Issuance and sale of
authorization
Commerce
Branch—Brantford, Ontario
the
of
Interstate
equipment
cost
less
-
A. F. Francis &
Company
Williams
1.25
Enamel
son
&
Members:
&
Co.; Freeman &
Co.;
Co.; The Illinois Co.
Co.;
and
Investment
Dealers'
Montreal
Association
Stock
Mullaney,
Wells
Company.
of
36 James
King Street West,
TORONTO
Street
South,
HAMILTON
of
J.
Hogle, founder in 1912
Hogle & Co., Salt Lake
A.
City, passed
away at the age of
following a brief illness. Mr.
Hogle was a member of the New
78
York Stock
Exchange.
are
Members of
regarding
Fund
Associates, 444 Montgomery
Daniel Reeves Adds
Showalter
Daniel
Reeves
Beverly
Drive,
5.9
8%
2.3
Petroleums
0.20
6
3.3
1.60
45
3.6
Can-
of
ade Ltd. "Ord." & Class "A"
Oil
well
drilling contractors
Great Lakes Paper Co., Ltd._
Manufactures
bleached
newsprint
&
un¬
sulphite paper
Great West Coal Co., Ltd."B"
9
0.375
6
2.00
a22%
9.0
9
2.20
601/4
3.7
1.00
16%
6.2
1.25
191/4
6.5
8
0.35
9%
3.7
8
2.50
6O1/2
4.1
7
2.40
7
0.10
8
0.60
7
0.12
1.94
6.2
7
of
5.8
9
distributor
61/2
9
Wholesale
'•
0.10
1.50 '
6.7
lignite
coal
Great West Saddlery Co., Ltd.
distributor
of
general
mdse., and riding goods
Building materials; gypsum and
products; industrial chemi¬
lime
cals, etc.
Hahn Brass Ltd
Manufactures
metal
large
variety
of
products
products
paper
&
In¬
corrugated
Hydro-Electric Securities
Corp.
Industrial
Acceptance
Corp.,
are
now
also small
general insurance busi¬
ness
HILLS, Calif.—Ed¬
Henry K. Glaesner, Simeon S. Jacobs, Maurice J.
Kaplan, Harry N. Purdy and Rich¬
L.
6%
0.20
Ltd
International Power Co., Ltd.
ward C. Ashton,
ard
0.40
tionery
loans and
BEVERLY
Exchange
1.5
con¬
Ltd.
(Special to The Financial Chronicle)
Corporation Securities
41
trust
The
Toronto Stock
Bakeries
Purchases acceptances;
Association of Canada
Municipal and
<
Management type investment
Mutual
Street.
Government,
6.0
etc.
with
The Investment Dealers'
Canadian
0.60
furnaces, air
Cooper, Mrs.
Lagier
affiliated
6.25
com¬
Ltd.
FRANCISCO, Cal.—Marie
now
insurance
cluding containers
products
June M. Dick and Matthew
Enquiries invited
0.375
and
One
of
Canada's
largest
inde¬
pendent bakery operations. Makes
bread, cakes, biscuits and confec¬
Manufactures
(Special to The Financial Chronicle)
Boyd, Lawrence A.
silver
Hendershot Paper Products
With Mutual Fund Assoc,
SAN
0.7
6
Ltd
zinc,
Gypsum, Lime & Alabastine,
Canada, Ltd.
Hogle
James A.
66
150
reserve
8
Wholesale
James A.
for
Heating Products,
ranges,
General
Canada
Exchange
3.4
Helicopters,
ditioning equipment,
store
The
Bell
life
as
&
Stoves,
to
Inc.; Wm. E. Pollock & Co., Inc.;
First of Michigan Corp.; F. S. Yantis & Co. Inc.; McMaster Hutchin¬
SECURITIES
37
pany
in. the
&
4.1
products
aircraft
copper,
Operates
27
offering are:
Pressprich & Co.; Baxter,
W.
related
services
General
Ira Haupt &
LIMITED
INVESTMENT
R.
361/a
machinery
Empire Life Insurance Co
gauge
estimated
cars.
Associated
mining
pyrite
the
$12,520,000:
than
&
manu.
Produces
locomotives, 10 dieswitching locomotives and 965
box
1.50
training in R.A.F.
diesel freight
sel
2.4
makes
Ltd.
standard
new,
railroad
also
East Sullivan Mines,
subject to the
are
The issue is to be secured by
not
2iy4
Canada Ltd.
also
Commission.
following
0.50
construction &
repairs;
and
Sells
to yield
to
the certificates
255 Bay
2.4
waterways
on
and
Macaroni
RR 3%% equip¬
certificates, maturing
Sept. 1, 1956 to 1970,
2.90%
16%
De Havilland'Aircraft of
series
maturity.
0.40
Catelli Food Prod. Ltd. "B".
trust
from
Exchange
3.8
1.00
dredging;
Shipbuilding,
Equipments
inclusive at prices scaled
Members
39y2
6
Foils, Ltd
Canadian Vickers, Ltd
syndicate managed by Halsey,
&
Co.
Inc.
on
Sept. 23
offered $9,390,000 of Southern Pa¬
annually
fl.50
7
Ltd
cement
repair work
A
Co.
4.9
Canadian Dredge & Dock Co.,
Stuart
ment
12%
25.3
and largest foil converting
plant in Canada
Offers Southern
cific
f0.625
5.85
Oldest
in
Halsey, Stuart Group
1909
f 1.48
etc.
Ltd.
SINCE
3.1
dredging project
Co. Ltd. "B"
General
DEALERS IN INVESTMENT SECURITIES
13
8
Dredging, Ltd.__
gold
a
Canada Cement Co.,
voice for
tive, representative
Pacific
0.40
1
of
Guinea
products,
nation's stockholders.
Charles H. Burgess & Co.
2.0
Meat, lards, butter, poultry
of
Shareholders
of providing
purpose
49
materials,
largest producers
in Canada
Burns &
independent group
an
of investors organized
the
1.00
other
corrugating
the
in New
industrious
and
United
is
and
Ltd.
of
Operates
Exchange
President, Edward T. McCormick."
The
7
8
co.—gold
Bulolo Gold
American way of life, and
of
America
5.3
timber products
and
the
D.
140 South Beverly
California
with
Toboco
2.15
interests
Products
T. McCormlck
e.
of
BEVERLY
Julian
Smith
0.15
and
One
mark of
appreciation of the work and place
(Special to The Financial Chronicle)
7.8
British Columbia Forest
present¬
a
9
etc.
ing the award
"as
development
Boxboards,
that he
Drive.
Walston & Co.
foreign countries.
metal
Javits
stated
0.70
Bathurst Power & Paper Co.,
Ltd. "B"
presentation,
Mr.
vestments, Inc., 233 South Beverly
more
possible, who also
protect himself
unorthodox
yet legitimate
how
BEVERLY
nest
1955
—
automo¬
of
Ltd
Co.,
holding
the
at
Canadian $
equipment
Prospectus,
citation
a
Paymts. to
June 30,
1955♦
8
distributers
Barymin
meeting.
In
1955
6
Service
Board
read
tion
June 30,
tive electrical carburetors & auxil¬
Governors
(Special to The Financial Chronicle)
30,
9
Auto Electric Service Co. Ltd.
Ex¬
change
June
—
Javits
an
Quota-
12 Mos. to
Divs. Paid
Presi¬
A.
at
Extras for
No. Consecutive
Years Cash
Benja¬
With Real Property
Weston & Co.,
events
min
A&rox.
% Yield
Based on
Including
from
tion's
dent,
i)
Cash Divs.
of
organiza¬
of
or
usually
knows
the
DALLAS, Tex.—Dr. William B.
has
35
page
AND FINANCIAL GROWTH
President,
Shareholders
United
the
America
Dean Elected Chairman
Dean
McCormick, Ameri¬
Exchange
are
without
ing
Stock
can
of
would
T.
Thursday, September 29,1955
CANADA'S INDUSTRIAL, MINERAL
Honor McCormick
Edward
from
..
accepted the Blue Ribbon Award
cipal of the firm.
competitive weapons. The bu¬
reaucrat in the government of a
soft currency country may not be
able to introduce new laws which
Continued
United Shareholders
DALLAS, Tex.—Boston Securi¬
ties Company has been formed
with offices at 1907 Elm Street, to
engage in
the investment busi¬
.
with
&
Co., 398 South
members of the
New York and Los Angeles Stock
Holding
co.,
utilities
in
controlling
Central
and
159
1.5
public
South
America
La Luz Mines Ltd
2.20
4.5
Nicaragua gold producer
Laurentide Acceptance Corp.
Ltd. "B"
Purchases
installment
sale
20
3.0
con¬
tracts
>■
BANKERS BOND CORPORATION
Exchanges.
Macassa
Mines, Ltd
Ontario
Limited
Elected Director
Business Established 1912
Albert H.
44 Kino Street West, Toronto, Canada
kitchener
london
Gordon,
a
MacLeod-Cockshutt Gold
partner of
Kidder, Peabody & Co., invest¬
bankers, has been elected a
ment
director
of
Collins
Radio
Co.,
Mines, Ltd.
Ontario
♦
price
major designer and manufacturer
June
of
specialized radio communica¬
navigation equipment.
tion and
♦
gold producer
Quotations
a
hamilton
gold producer
Add
Asked.
June
to that
date.
30,
1955
Bid
sale
and
prices
ask
or the last sale
quotations are as of
1955.
current
t Adjusted
a
represent
prior
30,
for
Canadian
stock
Exchange Rate.
dividends, splits, distributions
etc.
.Volume 182
Number 5488
The Commercial and Financial Chronicle
,
.
.
(1309)
Canadian Demand for Cars Placed at
CANADA'S INDUSTRIAL, MINERAL
Cash Divs.
Approx.
Quota-
secutive
tion
Years Cash
June
June 30,
June 30,
1955♦
—
Maxwell Ltd.
1955
dryers,
Canadian $ *
and
mowers
4.4
tors
choppers
"B"_
concludes
Mersey Paper Co., Ltd
Newsprint
related
and
Brick
Makes
quality
exploration
0.20
7
1.00
4.4
9
specialty
timber
3.2
69%
§2.20
the
products
(Robert)
Ltd.
Co.,
8
Brass,
bronze,
metal
5.6
18
fl.00
products
nickel
other
and
Modern Containers Ltd..
tube
Makes
containers
16%
1.00
8
for
ments
ether
&
3.00
of
36y2
8.2
apt.
7
31
1.20
3.9
Operating public utility
and
an
up¬
population
car
wire
cloth
mesh
2.50
40%
6.1
is
in
0.65
0.025
5
3.8
Receives royalty from Howe Sound
Co.
through
lease
of
properties in Manitoba
company
Pamour Porcupine Mines Ltd.
0.57
5.3
7
0.03
7
0.50
18
2.8
5
1.50
241/2
6.1
gold producer
Pressed Metals of Amer.,
Bushings, bolts, bars, etc.
Inc.
silver,
7
Quinte Milk Prod., Ltd. "B"
dising
and
goods
dry
of
retail
4.1
0.80
IO1/4
7.8
6
1.35
65
2.1
merchan¬
variety
and
lines
Rolland Paper Co., Ltd
High-grade
bond
writing
products
related
St. Lawrence
paper
72%
2.00
5
period, the U. S. passenger
population grew from 28 mil¬
lion
2.7
1.00
6
0.07
5.6
18
other
and
Silver Standard Mines Ltd—
silver
and
0.45
15.6
cadmium
production
Gold &
dredging
Stadacona
in
operation,
America
South
Mines
(1944)
0.35
$
8
0.02
0.27
Co¬
Ltd.
7.4
Quebec gold producer
Standard Paving & Materials
33
1.50
8
4.5
0.18
7
6.80
2.6
Carson
9%
0.50
9
5.4
Holding co.—interests in automo¬
household
Traders
Finance
appliances
Corp.,
Ltd.
"B"
9
Purchases
installment
2.40
5.2
b46
ob¬
sales
ligations
-
Co.
Gas
of
Canada,
Ltd.
7
Production,
storage,
distribution
of
1.40
477/8
2.9
transmission
there
1954
which
177
were
income where car-buying becomes
curities
feasible.
number
of
0.30
35.50
0.8
9
3.00
58
5.2
5
Viau Ltd.
and
of
0.80
22%
Western
♦
price
*
+
grocery
Add
.
1.00
5
business
-3.6
-
were
to that
1955.
prior
30,
Adjusted
I Adjusted
for filling
and
of
a
with higher
ture
dollars
doubled
is
con¬
offices
cars
or
the
MINNEAPOLIS, Minn.
the threshold
would
—
Hans
Nelson is with Paine, Webber,
C.
Jackson &
Curtis, Pillsbury Bldg.
carry
With State Bond & Mtg.
looking at the possible fu¬
of the Canadian car-
scope
(Special to The Financial Chronicle)
in
haviour
Americans
which
alike
Minnesota Street.
than
own an
With Bache Staff
automobile.
(Special to The Financial Chronicle)
mid-1950's, Canadian per
capita incomes are just about
the
Bond
general de¬
it is in the
In the
N. C.—Woodson IT.
RALEIGH,
at
Broughton
reached in the U. S. in
level
Minn.
ULM,
Curtis has joined
and
Canadians
more
are
—
John H.
the staff of State
& Mortgage Co., 28 North
NEW
haps the best guide. For if there
is
any
aspect of consumer be¬
has
become
affiliated
Co., 126 South Salis¬
with Bache &
bury Street.
1939, and the density of the Cana-
per
ANDRAS, HATCH 6- McCARTHY
Members:
growing
incomes.
Investment Dealers' Association
suite
503
TORONTO 1
Telephone EMpire 3-9151
320 BAY STREET
population
h.
ment
at
old
of Canada
de¬
pointed out that replace¬
demand depends upon the
which
The Toronto Stock Exchange
r
not
new
McCarthy
d'alton
william hatch
B. andras
kenneth
hetherington
sidney c.
are
cars
scrapped, and that one of the most
important influences on the fu¬
ture
"rate of scrappage" is the
amounting to over
were
models built
500,000
J.
B.
R.
WHITE
K.
V.
cars,
before
older.
and
1942,
According
G.
DEAN
TORONTO
EXCHANGE
STOCK
8-3401
EM.
TELEPHONE
HOLMES
OF
MEMBERS
THE
J.
ELLIS
6- Co.
J. B. White
of age
to
the
A.
years.
a
rate
together with the scrap¬
ping of some postwar cars, indi¬
cates a rate of scrappage of 150,000 to 200,000 per year in the next
few years.
In five or six years,
the scrappage rate might be 225,000
or
more,
when it becomes
heavily influenced by the wearing
out of cars bought in the postwar
period,
particularly
those cars
been
a
used
for
com¬
date.
1955
Bid
sale
and
prices
ask
or
in the economy.
Population growth
and income
growth are the most important
factors bearing on the demand for
G.
GOULDING
J.
L.
ONT.
A.
ROSE
W.
T.
HAYMAN
G.
C.
Goulding, Rose & Turner
MEMBERS
THE
TORONTO
OF
STOCK
EXCHANGE
annual increase in
people in the car-
buying population (aged 20 to 75)
has been 143,000 per year since
the war. The number entering the
20-24
t Inactive issud, no Exchange trading.
show' much
year
group will
increase for, a
not
age
,
few..
320
BAY
TORONTO
TELEPHONE
STREET
1,
CANADA
EM.
6-770!
TURNER
McNAIR
V'
cars.
b Bid.
D.
able to expansion
the number of
etc.
Canadian-U. S. rate of exchange.' Add current
exchange rate to translate into U. S. funds,
for
E.
SUDBURY,
and which have
of total car sales in the
of
.
—
OFFICE
CANADA
Apart from replacement needs,
Review observes, a consider¬
The average
as
1,
TORONTO
BRANCH
STREET
BAY
the
last sale
are
320
shorter than average life.
the
quotations
303
SUITE
approaching 150,000 cars
per year,
have
at
(Special to The Financial Chronicle)
large number
income
from
Avenue.
With Paine, Webber
market, the Review observes that
the recent American past is per¬
is
additional
30.
Exchange Rate.
for stock dividends, splits, distributions,
Canadian
in
increase
the
very high rate of sales in the past
few years can be maintained in
the future depends upon the com¬
bined requirements for replace¬
0.8
in
Canadian
current
A
business
Melrose
5909
market, and a further
car
produced do¬
Whether
mestically.
127
Canada
Quotations represent June
June
f.
Grocers Ltd
Wholesale
has
are now on
Nearly 2,150,000 new cars have
been sold in Canada since 1945,
able part
confectionery
Grey Trust Co—
Operates as trust, company
Western
the
the
ANGELES, Calif.—Leonard
is conducting a se¬
Schneider
them into the car-buying range.
past few years has been attribut¬
&
LOS
increased by 230,-
1951.
people
*
receiving
(in
year
value)
1942 and
since
000
of
per
constant
since
that
individuals
of
$4,000
over
estimated
is
It
Opens
(Special to The Financial Chronicle)
B.
in the United States.
mercial purposes
7
Holding,
investment,
promotion,
exploration and development co.
Biscuits
L. B. Schneider
of the increase in
been the shift of very large num¬
of people into
a
range
of
1,000 people in Canada compared
which
natural gas
Ventures Ltd.
Victoria
that the most
says
cause
Withdrawals of pre-1942 models
and
(Canada) Ltd
and
sharp
people), the Canadian car popula¬
tion still lags some 15 years be¬
hind that of the U. S.; at the end
at
Pearson
in.
cars
and
demand in the past few years has
siderably short of doubling.
However, in terms of density
(the number of cars per 1,000
Quebec gold producer
Taylor,
growth
similar to what has already
been experienced in the United
States
at
comparable
income
entering levels,
Review, most of these cars will
probably be scrapped within three
paving contractor
Sullivan Consolidated Mines,
Ltd.
further
It
to
effect, there
increase in the
and these are now 14 years
Ltd.
that
country.
reasonable
be accompanied by a density of
the higher
wartime
take
Review
population. About 80% of all cars
registered at the end of 1954 were
not more than nine years of age.
Almost all of the remaining 20%,
5
Platinum Co.
General
The
important
present age composition of the car
American
lumbia,
million
48
to
products
gold,
than
Over the
more
rate
8
this
in
seems
number of young people
the car-buying population.
termination to
It
Silknit Ltd.
suits
a
be
another,
mands
Corporation
swim
of
population has
eight years.
car
ment
Ltd.
rayon
end
astonishing
1954, there
an
doubled in
Newsprint & allied products
Lingerie,
the
At
of which 84%
8
Robinson, Little & Co., Ltd—
Wholesale
3.65
0.15
'
products
milk
of
rising at
almost 2.7 million passenger
to 296
copper,
zinc, & pyrites in Quebec
variety
years
will
In
the Review ob¬
that total car registrations
registered, compared with 1.2
cars
of
Quemont Mining Corporation
Ltd.
in¬
of
some
cars
suppose
same
Nor-Acme Gold Mines Ltd—
gold,
a
sales,
car
serves
car
Producers
forecast
can¬
rec¬
of
&
weaving machinery
Ontario
postwar
once
the
of
million at the end of 1946, so that
8
Manufactures
future market
as
rates
the
Ltd.
and
to show
any
were
Niagara Wire Weaving Co.
Union
employment
for
rate.
Light & Pow.
Ltd.
tive
as¬
However, noting that
of the
have been
houses
Gold
the
on
year ahead.
examining the postwar
In
number
owns
Newfoundland
South
based
they wish, the Review cautions
that such a general estimate of the
ord
8
of
cost
therefore
bers
is
that
serve
birth
particular
Ltd.
Operates
Zinc,
in future
cars
if
not
Monarch Mortgage & Invest¬
and
for
However,
years.
for anticipating an
present
scope
6.1
tooth
and
paste, shaving cream
semi-liquid products
store
good
and that consumers are
position to postpone buying cars
a
"A"
Wide
a
young,
Mitchell
wire
are
five.
ward trend.
and
papers
there
incomes continue
Co.
Newsprint,
Canada, the
Monthly Re-
as
view
sumption
company
Co.,
more
This
Minnesota and Ontario Paper
other
of
age
financing
&
market
high as the aver¬
than 300,000 per year
at least
in the past
4.5
22
that
reasons
years
brick
Mining Corp. of Canada, Ltd.
Holding
4.50
6
face
future
of the
annual demand
products
Co., Ltd
first
many
0.6
170
1.00
7
of the fac¬
some
the
view of The Bank of Nova Scotia
3.8
bl0
0.60
9
dealings
grain
of
survey
affecting
current issue
General
Milton
a
for passenger cars in
food
McCabe Grain Co., Ltd.
simi¬
the United
level
same
the average Canadian income will
In
washing machines,
lawn
with
very
in
was
the
at
lag in Canada,
probably attributable to the higher
prediction
—
5%
0.25
6
Manufactures
30,
1955
Divs. Paid
what it
come,
"Monthly Review" of the Bank of Nova Scotia bases
of hpward trend of automobile purchases on
continued high level of employment and incomes in Canada.
Paymts. to
12 Mos. to
Yearly
population is
car
to
States
Current
% Yield
Based on
Including
Extras for
lar
Three Hundred Thousand
AND FINANCIAL GROWTH
No. Con-
dian
37
33
The Commercial and Financial Chronicle
X1310>
.
.
Thursday, September 29,1955/
.
*
Continued
jrom
nuity
3
page
Association, who in 1952 needed? Apparently life insurance
tne College
Retirement agents have been trained to be¬
launched
Equities Fund.
Comments
back
fall
decided
to
maxim,
"if
old
the
on
lick
can't
you
'em,
These,
circum¬
the
are
the
which
in
variable
annuity was born. It was not a
policy designed by the actuarial
department to fill a need which
existed
no, the contract which
—
here
behind
hides
whiskers
of
false
insurance
an
conceived
was
the
in
the
policy
sales
de¬
partment to catch the big money
that
it
getting
was
is
intended
cate
the
well
by
Stock
job
the
to
now
so
funds, the
monthly invest¬
of
the
variable
zealously guarding
against its en¬
are
front
door
croachments.
They
look
at
the
laws
of
several
amendment
sale
pension benefits normally
had
states
The
need
whatever
no
to
permit
variable
of
now
better
window.
rear
people have
annuities;
annui¬
ties
by fraternal insurance com¬
panies.
A group of these small
but
energetic institutions is
either
quietly formulating plans to in¬
the annuity without the
fanfare that accompanied the Pru¬
dential effort.
from their investments, and
need
to spend
any
of
_come
will
not
their capital
in order to maintain
their
standard of living.
These
people
may
have difficulty in
grasping the fact that their per¬
situation
sonal
And here's the pay-off: the re¬
behind these plans will be
carefully segregated.
The com¬
panies recognize that they are not
experienced at common stock in¬
vestment.
So, how do
You're
you suppose
reserves?
right—in mutual funds!
ities
STANLEY
GRANT
unimportant
are
Sakolski's
articles
in
the
"Chronicle"
of Aug. 4 and
Aug.
25 give a
summary of viewpoints
on
variable
annuities,
as
ex¬
pressed by
spokesmen for
At
he
cludes
the
In
other
between
who
the
these
accumulated
a
they
die.
These
who both
can
b
man's
ceive.
point
whose
that
sort of
privately
On
the
fi¬
con¬
in the belief
money
combining pension
savings can he con¬
independent
com¬
living
annuities contain
if
the
pro¬
dies
company
named benefi¬
a
or
stated
a
number
of
"years
Such provisions
may
is
widow
a
with
be
an¬
young
preparing for old age,
annuities
differs
clear
as
what
are,
can
af¬
from
standard
expects to have
capital
of
to
dependents.
him
to
and
years.
nuity."
sion
or
a
A
word
"pension"
familiar than "an¬
annuity
group
for
in
labor
the
sort
which
union
premiums
pays
ance
the
name
plan
an
an¬
pen¬
employer
other
or
to
is
of
group
life-insur¬
a
company, which in turn pays
a worker after he has
benefits to
reached
age.
a
And
annuities
specified
retirement
nowadays,
individual
best
can
be
understood
by thinking of them as a sort of
private pension; an individual in¬
vestor
pays
premiums
to
life
a
insurance company and the com¬
pany in turn pays benefits to the
investor or to his dependents or
both, starting at a specified
Technically an annuity or a
other
spend
the
in¬
the
same
estate
an
than
the
for
annu¬
it is easier to start with
the sim¬
plest type, and let the complica¬
This article is limited
straight
life
annuities,
in¬
cluding those covering two lives,
called
to
life
the
general
which
throughout
the
benefit
started,
attention
assume
lifetime
annuitant,
the
on
pay¬
a
will
invest
same
the
as
public
all
are
es¬
issue, let
company
or
the
that
fund
stocks,
entirely
and
that
paid to
nuitant
both
will
vary
to
general public, presumably a
can put all or any portion
of his
savings into them.
received
by
reasonably safe and sens¬
operation, a company offer¬
ing variable annuities should ob¬
ible
rules
serve
along
the
following
(1)
not
Buying
annuity
an
be subject to
ing.
be
should
speculative tim¬
Purchase installments should
spread
20 years
at least
over
10
years;
benefit
tant,
lent
to
the
Teachers
the
give him
fair
over
the
sev¬
equiva¬
selling
average
the
practically impos¬
buyer of life insur¬
With
tended
the
habits
ex¬
ap¬
parently an
annuitant will
be
expected to accept, on faith, what¬
size
of
benefit
paid by O.A.S.l. has been greatly
in
increased
theless
recent
the
awful
couple
cut
in
of
and
the
reports
stockholders
to
investment
companies
exceptionally clear.
an
standard
their
inflation.
of
when
record
can
are
The plain in¬
a
what
of
from
it
was
In view
1940
informed
an
the
buying
montn will
they first retired.
the
d.d
that the
half
to
living
it
1951,
as
and
will find
shrink
of
again
of their $329
power
how
cost
rise
1940
Browns
of
the
If
to
to
date,
person
say
that
fixed-price investments bring
"security"?
On variable
annuities, of
the
On the other hand, the prospec¬
tuses
take
Furthermore, as benefif pay¬
received, if the Browns
spend all of them, they are left
with no protection aga.nst future
payment the
chooses to send him.
company
never¬
years,
must
ments are
between
annuities,
variable
to
saved
the
on
same
O.A.S.I., a total of $192 a
Thus, although Mr. Brown
a
large percentage of his
earned income for 20 years, and
although the amount of benefits
month.
happens
his pol¬
partly the
result
of the companies having
such absurdly complicated prac¬
tices.
from
just
figures
company
charges and payments
icy. This doubtless is
results
will
and
cannot
be
give
simple
a
effects,
form
must
we
of
rate
not
course
uniform
be
predicted. But to
illustration of the
uni¬
assume seme
return.
In
annuity
is that
to
ities,
show
cial
common
matters!
public, 'a
cannot
of his
sense
For
rule
capital in
finan¬
on
the
that
withdraw
general
investor
an
than
more
5%
month would
one
put quite a damper on speculation.
(3) A company's investment
with
companies.
extended
are
this
most all
insurance
payment includes
privileges
and
variable
to
will
other
on
life
tnese
If
increase
tax
pension funds
on
income
ing
on
made
obscure
the
pride, it
But
is
if
able
the
shares
the
of
with
common
entire
show
better
be
average
results than
insurance
will
in
com¬
perform¬
However,
portfolio
stock
simply
investment
even
mediocre management of
stock
its
fund
first-class
records.
ance
on
the beginning,
investing
panies
swallow
a
common
likely to
long-term
anyJof the giant life
companies
have
been
of
to
might
investment
obtain
ance
and insurance
company
be
of
and
company,
business
thus
group
jointly
life
a
companies
of
a
companies
control
investment
for
ex¬
insur¬
put
into
of
To
illustrate
issuing equity annui¬
ties.
portfolio
of
common
effect
of
an¬
example
Federal Old-
as
an
Let
broadly diversified
by industries and by com¬
panies.
Many investment com¬
panies have long followed this
policy.
stock
common
treated
a
be
capital rather than
as
should
in¬
in
come,
fund
figuring
annuitants.
In
a
payments
year
are
treated
cause
by
Survivors
Insurance,
systematic saving.
He
signs contracts with a life insur¬
ance
payments. Conversely, when stock
prices
low, the absence of
gains will cause benefit
are
capital
has the
gains
to
be
capital
effect
of
excessively low.
gains as capital
spreading these
benefit
source
of
is
of
an
over
annuitant.
(6) A
new
sales
for
each
with
12
annual
an
$100, and spaced
annuities,
premium
of
month apart
one
that he pays $100 once a month.
he took just one contract, he
so
would get appreciably less results
the same total of premiums
from
paid
per
strange
Mr.
this is
year;
rules
Brown
of
life
insurance.
these
pays
of the
one
monthly
premiums for 20 years, without
break,
and
The
lets
he
the
the
small
pounded,
pays.
At
dollar
will
be
long-
the
premiums
interest rate,
on
this
value
cumulates
about
of
in
the
20
fund
he
the
he
ac¬
will
years
be
one-half
larger than
on
fixed-price annuities.
Also, for
each $1,000 of fund at age
65, the
benefit payments to an annuitant
will
be
about
one-third
figures
used
proximately
those
company
here
are
cock
on
Mutual
John
of
ap-^
Life
for
"retirement annuity,"
a
contains
practically
element,
which
insurance
no
is
almost
of
and
Co.,
65,
wholely
drop
cautious
larger.
Brown.
badly?
age
Mr.
Brown
Of
course
in
reserve
of
low
fixed-price
can
income.
years
invest¬
spend in
However,
years
it
is
extra-bad year such
as
only in
an
1932
1942 that the benefits
on
or
variable
a
lower than
1955,
times
price
benefits
large
In
1954 and
as
will
be
the fixed-
as
broadly-diversified
stock
common
fund tends roughly
line
with
Because
to
year
annui y.
ones.
A
in
as
every
such
years
variable
four
paid
fixed-priced
a
extra-good
paid
will be
annuity
those
the
the
size
cost
of
to keep
of
living.
benefit
paid
annuitant depends upon both
an
value
and
dividends,
the
benefit tends to fluctuate less and
plans to retire.
Mrs. Brown's age
to
is
his.
trend, than either share value
the
same
expenses
$600
600,
the
have
which
total
plus
Their
living
have been running about
month.
a
tracts
as
a
His
annuity
cash
is
value
the
2%
con¬
$29,-
equivalent
premiums
about
of
he
of
has -paid
annual
interest
He
converts
a
nuity,
start
his
joint and
with
at
come
dividends
closer
to
alone
booklet "A New
tirement
cost
The
do.
tween
living
1951,
argues
50-50 be¬
fixed-price and equity
gives
or
T.I A.A.
Approach to Re¬
Income,"
that dividing premiums
nuities
of
the
results
best
an¬
in
keeping benefit payments in line
compounded.
into
a
whose income is ir¬
man
regular, accumulates in good
a
use
when stock
year
*
the
annuitant
an
a
ments which he
share
fixed-price.
in
money
values
Han¬
Insurance
Mrs.
and
But what does
on
a
dividends.
survivor
benefit
once.
For
contracts
old
%
an¬
payments
each
to
$1,000 of
with
In
cost
of
living.
pensions
or
group
annuities,
the
advantages
stock
portfolio and variable bene¬
of
a
common
cash value at age 65, Mr. and Mrs.
fit payments are the same as have
Brown will receive
been
ment of $5.60
as
a
benefit pay¬
each month
they both live.
as
long
Their monthly
receipts will be $166 from the
force
com¬
a
the
average
results
for
an
annuity buyer will be the equiva¬
lent of 6% annual interest, com¬
on
company
At
they will
large
benefit
portfolio,
for Mr.
and
started
income
as
extremely
that with
assume
45 Mr. Brown decides he must get
Age
to
when stock
dividends
capital.
term,
stock must be
both
us
stock
mon
both
of
usually called Social Security, but
included
in
any
other pension
plan. Suppose that at the age of
covered
man
accumulate
(4) The
the
reduction
Combining the effect of these two
increases, the size of the average
benefit, per dollar of premium
paid, will be about twice as large
as on fixed-price annuities.
This
is a mighty serious improvement
a
the
the
important fea¬
annuities.
take
us
allowed to
be
more
variable
nuities, let
If
Another way to combine invest¬
the
tures
insurance
an
to
obtain first-class in¬
can
vestment results
by
stock
common
in¬
and saving for old age.
meantime, income-tax un¬
out, the life insurance companies
with
cov¬
of life
surance
should not
tradition-bound, and they lack
rul¬
without
fairness
experience
portfolios.
favored
fair
a
ering the whole field
In
are
load
variable annuities
on
be
the
are
taxes, and
taxes
cannot
annu¬
However,
payers.
portfolio must be reasonably-well
managed. As Dr. Sakolski pointed
payments
An¬
be
a
contracts
Treating
and
how
an¬
precisely
annuities to find out
or
ciary. This sounds like paternalism
gone
wild; it implies that col¬
lege teachers cannot be expected
these annuities
Insurance
for
spouse
one
a company issuing
or set¬
calculations, the effect of divi¬
discouraged, to equity annuities should come un¬ dends and change in price of stock
der the
control of the SEC, or
avoid speculative timing. C.R.E.F.
is always combined.
During the
permits no surrender during the else the state insurance commis¬ accumulating period of an annu¬
lifetime of a premium payer, and sions need to be revolutionized.
ity, all dividends are reinvested
after his death, only if the con¬
(8) Substantial income-tax ad¬ °in the fund. Later, when the fund
tract names his estate as benefi¬
vantages are enjoyed by owners of pays benefits to an annuitant, ea( h
the
fund,
to
seems
sible
explain
After
survivor will receive
the annuity and $81
tlement should be
an¬
of the
must
$329.
the
from
$111
living.
benefit payment is figured.
a
ference
price. Lump-sum surrender
an
the
nuitants
how
insurance
and
help.
A company's reports to
(7)
annui¬
an
being spread
years,
of
a
Here
of
dies,
,
payments
by
eral
stock.
again,
cooperation between invest¬
ever
is better.
(2) In the ordinary course, the
payments
throughout the estimated lifetime
Thus far, the best
on
in
intelligent,
inducing tneir
for invesiment
companies
companies would
It
nhese
an
sign up
common
ance
For
with
and with the market
value
information
us
is¬
equity annuities
amount of benefits
fund.
of
offered
(5) Capital gains received by
offered
now
the main
that
variable
pen¬
continue
paid
When
fund.
are
in
be
,
sues
age.
equity
annuities
insurance
nuities,
named
the
will
companies,
who prices are high, if the
manage¬
mingle their annuity and life in¬ ment of the fund sells
consider¬
surance
funds, and invest them able stock that was
bought at a
almost
entirely
in
bonds
and much lower
price, it mav have
mortgages.
Benefit payments to
capital gains that year which are
an
annuitant are uniform, guar¬ several
times as large as its in¬
anteed dollar
amounts, plus per¬ come from dividends. With bene¬
haps a small dividend.
fit
payments that year already
"Variable annuities" is a
vague large because of high prices per
expression.
To help in focusing share of stock, if capital gains
dividends
once
annuities
sentially fixed-price investments.
Annuity contracts are issued by
life
benefits
av¬
than
more
buyer
"joint and survivor."
The
common
in
the
Also, in studying annuities
sion may last for a stated
number
of years, but it is assumed
here
that we are talking about life an¬
ments,
from
variable
a
his
with
leave
to
someone
to
other
his
of
un¬
elderly
pointless for
is
It
attempt
capital
itants.
to
augment
himself
recent
more
half
expect that, on the
getting.
tions wait.
is much
considerably
perience
he
textbooks, it may be because the
facts have changed so greatly in
Nowadays
erage,
to
do
now
ment
ment
annuity
can
clients
can
right from
insurance
the
"refund" to
agents
that
reasonable
seem
teacher
company
a
not
some
ar¬
annuitant
if
cal studies indicate that with pre¬
miums divided
50-50, a retired
sensible investor does not put
any
of his capital into an
Stanley Grant
people need them,
here
be
by
that
of
into the fixed - price
But this company s histori¬
less
E.
ford to buy them, and might pre¬
fer the variable
type. If what is
said
for
tinue in old age to maintain
But in
try to be
us
save
private
come
life
will
children.
an
let
benefits
need
only
and
that
what
individual
rare
a
annuities.
to
man
vestors.
First
is
pension
the
nate
unofficial spokesman for these in¬
to
in
by
large enough to give him a satis¬
factory standard of living, after
retirement.
The great expansion
of pension plans does not elimi¬
will
of
annuities
affected
But it
nuitant
view¬
the
for
need
is
age
wise, for example, when the
interested
e
in
people
whatever
pension benefits he expects to re¬
der
given
you
the
are
life annuities and
need
for them.
pay
A
certain."
chance. Per¬
haps
capital,
some
of the annuity
that benefits will be paid
to the beneficiary for the remain¬
annu¬
if
extremes
all of their capital before
or
cost;
might con¬
buying
ities,
two
ciary the balance
sider
aresunsafe,
positively wicked. l\ does
conscientious job of
common
eco¬
they must expect to spend
come;
some
young,
who
these
the
but
not enough to enable them to live
satisfactorily on investment in¬
will
in¬
vestors
of
reaching retirement age have
on
Many
speaks
for
end
the great mass of people who
are
vision
one
"safe" and others
are
not
in
lines:
fortable,
in¬
no
other
for
rangements.
groups.
But
annu¬
premiums of an individual an¬
nuity if he has no capital and is
not saving from current income.
af¬
several
fected
no
trary, the assurance of receiving
pension benefits may stimulate a
Phillipsburg, N. J.
Dr.
them
people.
nanced
E.
gives
grounds for assuming that
old
serves
outset
fixed-price investments
stocks."
T.I.A.A. requires that a teacher
put at least half of his annuity
type.
they already
capital, or they ex¬
pect to have enough before re¬
tirement, so that in old age they
can
live comfortably on the inhave enough
troduce
they plan to invest those
need for
no
nomic scale, a man cannot pay the
investing.
opponents
annuity
the
clumsily
being done
mutual
cumulative
The
the
best,
dupli¬
Exchange
plan and other instruments
ment
of
At
away.
the
"at
was
lieve that
premiums
modern
A few
then,
stances
fund
wholely
do.
'em."
join
this
Variable Annuties
on
The investment of
total
nuity, plus $163 from
an¬
O.A.S.I.,
a
explained for individual
an¬
nuities.
The
need
for
equity
annuities
has been obvious for many years,
and
I
hope
that
the
public will
Volume 182
haye
from
a
Number 5468
.
.
The Commercial and Financial Chronicle
.
chance to buy them
a
well-managed
With
the
on
1
reference
wish
in
to
subject
by
qualify
to
the
the
I
•respect to
articles
Sakolski,
be
may
the beam with
off
that
insurance
invested
have
com¬
in
money
minable,
;
neither
determinable
in
ex¬
tent
or time,
or duration.
;
(4) Confining variable annui¬
ties to a separate pool of funds,
to
;
statistically.
Economic
governing security prices
cycles
subjecting insurance companies
the
regulation
same
as
secu¬
rities underwriters, brokers and
only such risks dealers, or eliminating any favor¬
determined by actuarial statistics able tax
provisions, would not,
as will
provide a sufficient con¬ in my opinion, avoid the objec¬
tribution to the pool of funds to tions to variable annuities raised
(1) The basis for the insurance
contract should be
for
which
::i
summarize:
they
organ¬
ized and duly
specified in
corpora-
There
risks.
those
cover
is
no
indicated
and
A. N. Schwartz
charter,
my impression has been that in¬
surance
companies are organized
for
the
purpose
of
insuring
against hazards only, known as
risks, embodied in the
that
the
basis
contracts
that
all
for
rests
insurance
the
upon
premise
great many individuals (or
corporate entities, if you will),
are
willing to contribute a very
a
small
to
known as premium,
such funds, known
sum,
pool
a
the
of
assets
the
of
(insurance
■company) pool, for the purpose of
being
safeguarded
against
the
possibility
of
economic
bank¬
ruptcy or the great tendency in
as
that
direction
does
contribute
part of
actually
willingness to
small
a
sum
the
on
in creating a pool
safeguard one against
many
of funds to
event that may and does occur
an
is, in
basis
opinion, essentially the
my
insurance
an
in¬
an
the
and
company
of
ness
existence of
the
for
surance
busi¬
company
should be limited by its corporate
charter to this purpose and no
other.
Loaning
•
interest
of
out
the
or
the
of
at
money
pool
investing money
of assets, is not
for
reason
fixed rate
a
existence
insurance company.
of
an
It is
a purely
preserving
the value of the pool held in trust
incidential
all
for
function in
Insurance
companies, if I am
correct, may loan money or invest
only in a way that will not im¬
pair or depreciate its assets, the
pool referred to above.
To permit insurance companies,
under legislation, to invest money
out of this pool of funds, in se¬
curities
which
historically
are
known to fluctuate in value, is
to permit insurance companies to
-
risks for which it
undertake
not
was
organized. The fact that bonds
evidences
other
or
of
debt
fluc¬
tuate in value in accordance with
conditions
market
is
no
answer
this
rebut
to
principle of undue
of
risk because
in
assumption
practically all
of evidences
cases
of debt there is ownershio
or
capital
collateral to support the value
of
such
words
in
debt
securities.
insurance
the
or
In
other
is
creditor with
the position of a
equity
company
ownership capital first
available to support the
its
portfolio
value of
investments.
■"
of
Insurance risks
actuarial
confined
to
be
in
our
exert
based
this
and
also
economy
an
based
are
upon
statistics and should be
to
on
not
allowed
fluctuations
which constantly
influence
on
the
prices
stocks.
of
cline
naturally
in the sharp
fully
that
followed
the
par¬
de¬
weekend
announcement of President Eisen¬
permitted to invest
money
in
cyclical stocks as a hedge against
inflation and undertake the great
risk of deflation they will in ef¬
?pPf°,ac^
held
by
billion. The parent company's 50.8 million shares,
1,300,000 stockholders, are worth
over
the market.
over
$9 billion, in
*
The Bell System controls 82% of the U.
S.
while
ice,
telephones in serv¬
5,000 independent companies (most of them very
some
small
family concerns) control the balance. The second largest
telephone system is General Telephone, with revenues of about
$148 million; it is planning to absorb the number three system—
Continental
& co.
■ ■
Telephone
which
is
controlled
Theodore
by
Gary
;:v;
of
1954
the
/
investment
in Western Electric was
carried at about $368 million and in the Bell Laboratories at $20
million (one-half of the stock
the company's basic po¬
better in
aim
being owned by Western Electric).
sition, it
was one of the few rail¬
roads to report a larger net income
in 1954 than in 1953. Part of this
hower's heart attack, with its pos¬
sible implications with respect to
gain
domestic
share
trends
political
well
as
relations.
At
economic
and
international
as
time
the
of
this
writing it is, of course, impossible
to guess just how far the decline
in stock prices may carry—it may
well have spent itself by
this
is
this
ence
on
the time
print—nor what influ¬
in
development
will have
economic boom.
present
our
If it is felt that
the chances
of
a
Democratic victory next year have
been
greatly
there
enhanced,
it
likely
many
consider
sources
will
be
that
curtailment,
or
at least postponement, of in¬
dustry plans for further expan¬
some
was
due
to
tax
credits
stocks
the
rail
grade
better
where the record indicates
ability to surmount difficulties.
A case in point is Denver & Rio
Grade Western which on Monday
of this week was selling as low
afford
of
earnings
dilution
ferred
from
declined
conversion
due
of
other roads. Revenues
ahead, however, and,
most important, the transporta¬
tion ratio at the low figure of
have
gone
29.6%
the
for
through July
seven
was
months
down nearly
a
point.
38
to
a
to
return
a
share
reported in
1953
on
the
fewer number of shares outstand- '
ing at that time, and comparing
with $4.25 a
share earned last
year.
a
annual
$2.50
with
rate
most recent distribution.
benefits
sharply
of
has
reaped
the
combination
a
LOS
F. T.
ANGELES, Calif. —Orma
Stanley is now with Coombs
and
Company,
rec¬
has been little less than phe¬
It
(Special tc The Financial Chronicle)
the
The
ord of Rio Grande in the post-war
nomenal.
With Coombs & Co.
full
of
area
and
a
West
Sixth
par¬
(Special to The Financial Chronicle)
ticularly sharp improvement in
LOS ANGELES, Calif.—Jack P.
operating efficiency. The opera¬ Serina is now with
Dempseytion has been fully dieselized, the
Tegeler & Co., 210 West Seventh
main line has been virtually re¬
Street.
He was previously with
built as a heavy duty route, it has
Revel Miller & Co.
been in the forefront witn respect
traffic control
centralized
mechanization
a
of
and
iron
Provo-Geneva
industry
in
the
of Utah. These
area
funcamental factors that will
exert
it
is
not
a
permanent
influence
indicated
tialities
for
that
territorial
Miss
previously
with
Thompson was
J. A. Hogle &
Co.
vidual
with
institutional
buyers—only
capital needs.
Senior financing is done by both the parent com¬
subsidiaries. Direct equity financing is done by the
subsidiaries, usually through subscription rights, with the parent
company taking up its share of the rights in most cases.
and
pany
American
stock
mon
favorable
an
Telephone & Telegraph itself does not sell its com¬
directly except to its employees, who can buy it on
partial payment terms at a discount from the market
Stockholders
price.
enormous
are offered rights about every two years to
issue of convertible debentures, which are made so
attractive that most of the offerings have proven very successful.
The debentures are issued at coupon rates which practically insure
their
remaining at
premium, during
a
the subscription
the conversion feature may temporarily
value—thus avoiding the necessity of underwriting.
though
even
These
be
period,
of no
debenture issues are gradually converted
(with a cash payment) in order to improve income,
which, along with employees' partial payments, furnishes a steady
supply of equity money to the company. When the older con¬
vertibles drop to a small size, and the company is planning to
issue a new offering, it calls the old ones for redemption, thus
into
convertible
stock
forcing remaining conversions. For example, early this year the
company called the convertible 2%s of 1961.
As of recent date
there were only about $22 million remaining outstanding of the
3%s of 1965, as compared with the original amount of $602 million.
offerings of convertibles invite the attention of large
new
investors, who sometimes enjoy the market leverage potentialities
afforded
basis
on
The subscription rights can be bought for cash
by loans.
and then
in special subscription accounts on a 25%
used
(about one-third of the official 70%
margin
new
terms
the
on
Banks
accounts).
debentures,
new
curtailed such loans
on
can
make
still
liberal
more
though "tight money"
the present issue.
margin
rate set by the FRB
may
have
The price of Telephone
E.
F. Hutton Adds.»
(8pecial to The Financial Chronicle)
LOS ANGELES, Calif.—Marvin
A. Fine is now
&
naturally depressed by the sale of rights by many small
gradually recovers,
tions.
The
efforts of
serve
the
are
The
is being
on
a
change in general market condi¬
of rights by large investors who
Company,
change for the Street.
with E. F. Hutton
623
South
Spring
are
the stock's price recovery cushions the
selling by non-participating stockholders, and seems to
same
buying in the
ings
barring
heavy buying
speculate
willing to
protective function
case
never
as
underwriters' "stabilization"
of other utility offerings.
The Telephone offer¬
underwritten.
present offering of 12-year 37/8s convertible
debentures
offered to stockholders of record Aug. 25 in the
$100
debentures for
Oct.
13.
reflects
poten¬
growth
popular
is held by institutions—but the huge number of indi¬
continue to supply much of the company's
stockholders
The
each eight shares of stock,
subscription
the
valuable
niiii) of
right$ expiring
price for the debentures is $100, but
they have been selling recently around 130 "when
on
have by no means been exhausted.
Indicative pf the
Avenue.
Moreover,
the
particularly
seem
about 3%
stock is
constructed.
steel
100%
$10,861
holders, and after this market pressure is ended the price usually
not
and
60
(Special to The Financial Chronicle)
yards has
These
moves ;
LOS ANGELES, Calif. —Lloyd
only been reflected in H. Chapman is now with First
greater operating efficiency but, California Company^ 647 South
also,
they * have I improved
the Spring Street.
roaa's
traffic
position
through
better
service
and
placing Lie 2 With
Shearson, Hammill
company in a position to compete
(Special to The Financial Chronicle)
success, ully
for lucrative trans¬
LOS ANGELES, Calif.—Sue L.
continental
freight.
The traffic
position has also been bolstered Thompson and Muriel J. Yauger
have joined the staff of Shearson,
by industrial growth of the terri¬
Hammill & Co., 520 South Grand
tory served, highlighted by the
been
have
are
Total
2
195
6,551
_
Joins First California
maintenance,
series of modern
16
18
Long consistent in its $9 dividend policy and its refusal to
split the stock despite its high price level, A. T. & T. also follows
a uniform
method of financing its huge growth. The stock does
The
Dempsey-Tegeler Adds
22%
1,753
Minority Interest in Subs. Companies.
Parent Company—Total Equity
a
expanding traffic poten¬
tial in the service
602
Street.
$2,344
,
Company
Common Stock—
pressive
have many
Percent
Preferred Stock—Subsidiaries
called for redemp¬
allowing
for these
the showing was an im¬
the dividend tr.atwas increased
and
Parent
pre¬
one. Considering the 1954
performance it is natural that Rio
Grande
has
not
been
reporting
such
spectacular year-to-year
earnings gains so far in 1955 as
of May 31, 1955 was as follows:
Subsidiaries
to
Even
factors
as
Millions
stock
tion.
Capitalization
Funded Debt—
property retirements, and common
6.6%
as
to
funded debt.
On the other
liquidate
era
is noted for its strong capital structure, its
being to have two-thirds common stock equity vs. one-third
on
Federal income taxes were
hand, the boom up more than $1.7 million and
has gained so much momentum absorbed a large part of the rev¬
it seems hardly likely that even a enue gain. Nevertheless, net in¬
major
political
reversal
could come was moderately higher. On
cause
any
severe
recession
in the basis of the showing to date
business. Under the circumstances, it is now estimated that earnings
most railroad analysts are of the for the
full year will reach at
opinion that this is not the time to least $5 a share, topping the $4.93
sion.
the company fortunes.
If insurance companies are to
be
ticipated
stocks
on
policyholders.
Telegraph Company
The Bell System
Railroad
if the risk
The
occur.
&
Western
Denver & Rio Grande
Generally
agaipst the loss of liveli¬
hood beyond the age of employability.
I think it is important to note
American Telephone
American Telephone & Telegraph is a
giant in the corporate
field, rivaled in size only by some of the largest insurance com¬
panies. The Bell System has total assets of over
$13 billion and.
is growing at the rate
of over $1 billion a year. Annual revenues.
At the end
of
written
By OWEN ELY
dividend record goes back to 1881.
-
these risks are loss
life, loss of limb, etc., loss of
property, illness, etc. Annuity con¬
tracts, if I am correct, have been
Utility Securities
$10.02. In the past two years they were about the same, around
$11.40 consolidated and just short of $1,0 for the parent company.
The $9 dividend has been paid for
many years and the unbroken
insurance
.
39
American Telephone & Telegraph's share
earnings on a consol¬
idated basis in the past decade have ranged from $7.50 in 1947
to $12.12 in 1950, and on a
parent company basis from $7.28 to
above.
o n
contract.
Public
indirect method
an
panies are now barred from en¬
gaging in any other enterprise
except insurance.
(3) Insurance risks are deter¬
or
To
as
ownership of other industries
and possibly influence of man¬
agement just as insurance com¬
of
initiating variable annuities,
carrying out
only
such
business
be avoided
edge stocks "in the past v is
good reason for permitting
of
this
privilege
in
cyclical securities as the basis for
a
extension
limited in
the
fact
validity in undertaking economic
and security price risks.
(2), Ownership of stocks should
are
not
corporations
were
en¬
gilt
insurance
are
permitted to
in any other business pres¬
ently than the insurance business.
gage
The
Since all
t i
that they are not
panies
contracts.
;
permitted to undertake
ownership in other enterprises in¬
directly for the very same reason
the,
fundamental
basis for issu¬
ing
be
not
comments
my
that
sense
C.
Dr.
ownership in a great
assume
many
ABRAHAM N. SCHWARTZ
A. N. Schwartz &
Co.,
Washington 5, D.
fect
industries and this, in my
opinion, is contrary to the pur¬
pose for which they were organ¬
ized. Insurance companies should
company.
(1311)
conversion privilege:
issued." This
they are convertible
into
ohe share at $148, payable by surrender of $100 debenture
and
payment of $48 cash.
Since the stock has been selling re¬
cently at 181, the difference between 181 and 148 gives
tures
their
the deben¬
made
premium value (in conversion, adjustments are
for interest and dividends).
The Commercial and Financial Chronicle
U'lflt
(1312)
40
Continued from page
(a)
13
Determine
the
(a) Prepare
as a
Is There A Ford in
Your
(b)
influence
Bargaining Future
lower
wage
(6) Effective Date of Contribu¬
Con¬
tions and Benefit Payments:
tributions
' start
ments
American
layed for
For
pay¬
de¬
than a year (Sept.
payments
benefit
and
for
provide
Period:
and
American
Ford
the
Both
agreements
waiting
one-week
a
period. In addition, the Can agree¬
ment
provides
that
a
worker
whose total hours exceeded 2,080
the
in
past
idle time
must wait
year
brings the average down
eligible for benefits.
Other Restrictions
(8)
of
ment
Benefits:
The
Can
plan provides
ployee must accept
work
Pay¬
on
American
that
an
em¬
available
any
he becomes ineligible for
The Allis-Chalmers plan
or
benefits.
is
until
he is
before
considerably less restrictive in
this regard.
Another
is that
striction
in
type
of
re¬
the Ford
plan,
which^permits workers with less
10 years' seniority to build
than
up
credit units
first
two
slowly in the
plan. For
more
ferent companies.
In addition, the
payments
of
ments
made
are
less.
Only
benefits
14
in
demand
unemployment,
full
credit
of
work week
more
of seniority.
those
plan
mers
with
does
in
are
each
against Vz of
as
for
units
unit for
a
unit
difference
10
years
a
or
The Allis-Chal¬
contain
not
this
accumulating credit
units.
The
foregoing is not designed to
complete summary of the
provisions contained in recent
be
a
plans. Rather, it is intended pri¬
marily to illustrate the variations
in provisions which have
already
developed
companies
as
in¬
and
dustries have attempted to handto their own peculiar
tailor them
economic
characteristics.
Clearly, the pattern of the Ford
plan or American Can plan or any
other
program does not
ily provide
i
panies
terns
and
of
a
with
A
lower
than
given
a
distribution
terms
does not follow
liberal programs.
With
his
background,
turn
next
to
order to evaluate
sidered
of
of
Characteristics
Company
uniform pattern.
a
have
said,
employment
fluctuation
amount
here."
(John
Business
Agent,
its
and
companies, it
collect
393, AFL—Jour¬
Commerce, Aug. 17,
1955,
companies, this
more
costly cut-off
be a
than he
will
pending
Jow
23
For other
American
SUB
claimed
Can.
seniority
The
it
is
impact
significantly
vary
upon
the
men and the
importance
State
of
as
to rela¬
layoffs.
requirements may be
a particular
problem for bulky
products, prod¬
uct differentiation
multiplies the
number of different
items to be
production
deferable
may
or
may
to
off-peak pe¬
riods, employees may not be shiftable to other departments
because
of differences in skills
or
labor
provisions—in
these
re¬
spects and many others there
may
be limits to
flexibility which will
Reports
these
percent
made
helpful
are
in
(2)
Do you
how
and
merit
it
under
company operates?
less
than
more
or
rate?
If you pay
better
than
the
you pay
the
average
less,
have
you
the
to
unemployed
which
in
currently
are
by
What actions have
your
Are
there
any
state to increase
ment
ments?
the
do
space
duration
If so, by how
or
of
in
quantities?
this
month's
one
a
will
be
the
of
direct
and
for
used
the
of
—
one-month
a
Nature
These
into
should
three
be
To
broken
(2)
Finished
what
tories
inventories:
categories:
materials;
(3)
of
be
down
(1)
extent
inven¬
can
shifted
the
among
products you manufacture?
(5) Changes in technology
have
important effect
an
bility
of
employment.
can
sta¬
on
Labora¬
decision
to
teristics
of
an
industry
and
What
is
not
methods
of
production.
turn, has an impact on
employment.
(a) To what extent has un¬
This,
in
employment
in
your
company
been
due to changes in tech¬
nology rather than to seasonal
or cyclical
fluctuations?
(b) If
change the method
you
of producing a new product, do
also
workers
change
is
laid
the
off
type
and
a
of
com¬
pletely different type of worker
hired
when
operations
are
What
are
for
one
good
for
good
always
teristics
another.
economic charac¬
the
of
and
(1) What is the nature of
your
your
company?
to
the
product?
influence
products?
Are
they sold directly
use
in
or
to
manufac¬
making another
To what extent
the
demand
This
is
can
for
you
your
important
in
determining the ability to stabil¬
ize
Can
items
your
off
in
peak
portant
If
so,
what
produce
you
own
periods?
pro¬
these
company
This
is
in
im¬
a safety-valve and ties
attempts to stabilize em¬
ployment and the timing of new
in
employment.
in
should
one
year
magnitude of the
employment.
based
be
de¬
Estimates
declines
on
10%, 20% and 30%
or
of
other
any
combination of declines tnat typi¬
fy
business.
your
(3) The extent of service re¬
quirement for coverage. Estimates
be based
may
tions:
(a)
ered;
(b)
assump¬
cov¬
one
ered;
(c)
more
than
covered.
are
only employees with
year's service cov¬
only employees with
than
more
on several
all employees
three
The
What
is- the
cost if
(4)
this
The
years'
service
for
reason
as
estimat¬
equal
Wages,
(1)
basic
Hours
and
Related
of0layoffs:
(1)
60%
social
security
taxes.
This
will
show what proportion of workers
would
receive
the
proposed
centage protection under any
posed plan.
the
For
group
rehired.
was
comparative
purposes,
month?
hours?
Number
of
it would be useful to have sim¬
ilar data for the
1948 and
1949
recession
period.
What were the
(c)
take
of those laid off compared with
entire labor force?
your
(d)
What
perience
may not give a precise
picture of liabilities to come. Nev¬
reasons
evalua¬
an
tion of the 1954 layoff experience
is certainly a minimum require¬
ment
the
were
It must be recognized, of course,
a
reconstruction of past ex¬
ertheless, I think tnan
earnings
before
not to
deciding whether
introduce
or
SUB plan. The
a
for
mild nature of tnat recession sug¬
(2)
gests that the results obtained may
prove to be an understatement of
layoff: (1) Seasonal factors;
No orders; (3) Strike by
supplier;
(4) Inventories; (5)
Interruption to flow of
raw ma¬
terials; (6) Re-tooling;
Transportation
problems;
(7)
(8)
Weather?
laid off
future
experience.
provide
These
good
a
rehired?
were
Can you
determine how many employees
laid off get work elsewhere and
how soon?
have taken
you
to stabilize employment and what
can be done in the future.
(a)
What
Do
attempt
you
troduce these "new
in¬
to
products" in
off-peak periods?
(b)
Is
time
there
the
evaluations
plan
and/or
attempt
any
installation
of
to
new
Dependency
Status:
Show
number
of
claimed
exemptions
employee. These data can be
readily obtained from W-4 forms.
per
This
is
important
states
more
give
as
unemployment
for
states
currently),
unions
this
follow
plan and
(7)
dependents
the
be
liberal
and
American
benefits for
(9
Can
dependents.
To
what
extent^ is
paid
in
connection
seasonal
mine
made
operations?
total
over¬
with
(Deter¬
overtime
the
in
made
American
programs
they
Can
should
of
terms
more
because
union
ginning."
The
collection
require
internal
be
of
these
data
expensive and
some
may
reorientation
approach
statistics.
of
a
handling
to
Some
of
these
been tabulated in
never
tnis way
by most companies. How¬
they are indispensable to
ever,
reaching a sound judgment con¬
cerning the desirability of adopt¬
ing a SUB program. Sound col¬
lective bargaining must be based
upon
the
economic
facts
of
life.
This is true in
negotiating a SUB
pian as well as for other wage
and fringe benefits.
as
Overtime payments.
4a)
time
does
point.
leaders have already served notice
that these plans "are just the be¬
Marache, Dofflemyre Adds
special supple¬
request
mentary
and
more
compensation
do
it
be
may
addition,
In
plan.
also
facts have
equipment and machinery?
(6)
But
starting
within the framework of the Ford
(e) What proportion of those
payments
(Special
tij
The Financial Chronicle)
LOS ANGELES, Calif.—Thomas
Moore has been added to the staff
of
Marache, Dofflemyre & Co.,
Spring Street, members
the
Los
Angeles Stock Ex¬
change.
634 South
of
by payroll periods for 1953 and
1954.)
(b)
Is
it
out
jobs—to
the
season
Joins Wm. R. Staats
possible to spread
get the jump on
and
to
reduce
(Special to The Financial Chronicle)
the
output?
LOS ANGELES, Calif.—Edward
D.
Lambert
D.
liam
D
is
now
with
Staats
&
Co.,
640
R.
Spring
Cost Estimates
It
may
mates
are
many
of
specific
be
felt
not
the
that
cost
necessary
plans
payments
by
esti¬
provide for
employers.
for
such
can
specified
be
costs
SUB
and
to
Estimates of the cost of the
are
difficult
to
of
the
Francisco
Exchange.
San
With White, Weld & Co.
(Special to The Financial Chronicle)
obtained
determine how much plans would
cost for a designated benefit pro¬
gram.
and
York
Stock
Wil¬
South
because
the benefits
that
members
Street,
New
pro¬
overtime
cost
of
that
However, it is important to relate
Average number of hours
paid for at straight time rates per
65%
and
sideration.
long, and when—what
of
per¬
(2)
proportion of
Estimated
Approximate
estimates
of
a
of costs can be derived by
taking all these factors into con¬
for how
Cart
a
Data
Frequency distribution of
weekly wage rates before
the
qualification is modi¬
relative
to
seniority
no
determine
to
range
peak
C
is
covered.
wages
complete study of
1954 layoffs—who was laid
off,
with
and after deduction of income and
consumer
turers for
processes?
industry
industry
products?
tion
installations.
is
The
company's
portion?
its
(2)
ucts?
are
constantly developing
products and may make ob¬
solete
changed.
products.
pay¬
be made
six months and
tories
much?
done but by the economic charac¬
cor¬
Estimates should
on
new
to
SUB
(1) The duration of benefit
based
often will
pay¬
adopt
considered:
have you done to
time introduction of new prod¬
(6) Sub-contracting:
Do
you
sub-coritract any of your produc¬
The
Duration
(5) Past actions
you
should be determined not by what
another industry or
company has
a
In mak¬
home pay.
(b)
Raw
Semi-finished;
goods.
worker required to perform the
work? Sometimes one group of
Company and Its Products
hours?
Undertake
(2)
space?
to
Economic Characteristics of the
•
you
measured
physical
in
(c)
unemploy¬
compensation benefits
liberalize
between
proportion of the total
in
moves
feasible
consid¬
be
example, how many weeks
production could be
space
date?
(5)
is
relative
inventory.
ruling?
been taken
force
of
taking them out; (3) The cost-
possible in your state?
If changes are necessary how are
they tovjbe made—by legislative
administrative
labor
plants or companies of the
poration?
vacuum.
a
must
storage
of
overhead
UC
of
for some of the jobs and
cheaper to hire new help?
(e) How much interchange of
number
carrying each $1 of in¬
ventory?: (1) The cost of bor¬
rowing the money tied up in
inventories;
(2)
The
cost
of
handling inventories — actually
placing them in inventory and
(4) Is integration between SUB
action
in
How much
for
costs
operate?
you
inter¬
such
person
to
But storability can¬
(b) Assuming
inventory, what
merit rat¬
Do
(e)
de¬
Is it
force?
terms
cost
average
(3) What benefits
state
thereby
have
to
by
hence
in the Fall in
and
factors
(a)
of
degree
of stability in employment.
provided
plant
possible
(2) Is it permitted un¬
der the contract?
(3) Is it too
expensive to train an unskilled
it
one
is
transfers:
change?
seasonal
considered
have
rating?
available
Is
force
feasible
demands
ered.
What is the maximum reduc¬
tion
be
stored
ing in each state in which the
(d) How much interchange of
your
these
by
first?
labor
an
Several
determining
does
determining
fied.
how much? How
much
can
the following
alternative assumptions snould be
ments.
Pattern
partmental
nature?
important prerequisite
stabilizing
production
and
not
would unemployment com¬
pensation cost if you paid the full
rate
for
in
involve
Do
employment.
much
under
you
This would
estimates
your
and in any other year of reces¬
sion.
What is
tne
equivalent
is
for
benefit from merit
so,
(1) above.
of
layoffs
in
This
the
to
important
requirement
costs.
rating and if
com¬
of current
(b)
that
so
ing costs if there is
(1) What is the present cost of
unemployment
compensation
in
payroll.
demand
seasonal
products
same
For
and
costs
rough idea of the benefits
a
that will be available.
(a) Number of employees laid
off by years of service in 1954
sidered:
dollars
have
(4) Layoff data:
bility of employment in the past.
The following data should be con¬
(a)
be
(c)
employment?
(4) Are your products storable?
idea of the relative sta¬
you some
the
mate
stabilize
depart¬
a
should
Spring and
the
Your
experience with unem¬
ployment compensation can give
pattern
They
differ in terms of their
ability to
stabilize employment.
The storability of products differs, space
contract
on
shown under
possible, for ex¬
ample, to produce dne product in
the
be desirable to
data
the
Is
dovetail?
Unemployment Compensation
of
stability of employment and
production and, in turn, the rela¬
be
(C)
of
tive
stored,
(3)
Which
A
1
Companies also differ
not
the
or
at¬
tempt must be made to approxi¬
ing
(basic,
straight time and gross) for em¬
ployees
by
years
of
service
by
long period, if at all
This is important for
products
basis.
for
de¬
proportion
ci layoffs.
tive
of
Products,
may
these
mental
Federal
point
(A)
Wages, Hours, and Related Data,
and (D) Cost Estimates. For many
em¬
any
might
con¬
four headings:
under
Economic
seniority
Gerard,
oj
be
may
Unemployment Compensation, (B)
and
4.)
of
current
must
some
be
whetner
pattern is typical.
(b) Weekly earnings
estimating the impact of future
recessions and for making com¬
parisons with other industries.
proposed SUB
a
The data
program.
pat¬
"Rarely, if
ever, has there been a layoff at
the can company in the
three-year
seniority bracket. There just isn't
nal
examination
an
facts, not statistics—which a
company should have available in
ported
p.
me
said
each
Union
let
that
Nevertheless,
credit unit arrangement.
determine
a
production?
the types of internal facts—note I
connection with the American
Can plan, one union leader is re¬
Labor
with
states
assumptions
cline
more
com-
In
of
in
and
made.
off
data
piled for
for
greater
program
companies
be
of unemployment.
possible.
a
,
of
cost
employment, production,
seasonal
benefits
tion
These
periods of time (many oij
the southern states) will find the
layoffs, and wages differ substan¬
tially among companies. Thus, for
to
in
intervals
year
conditions
many
seniority groups—do snort serv¬
ice employees actually get laid
(inclu¬
company
of
the
of total production.
(c) Inventories—in dollars.
(d) Employment.
(e) Total payroll.
weekly
$30
em¬
years
of
that must be taken into considera¬
to
more
or
pay
of
necessar¬
guide for other
industries.
The
example, the
ployment in
weeks
units
Thursday, September 29,1955
.
ilar distribution for earlier years
com¬
major items constituting 10%
of the
years
lU
20
states
shorter
by
various
one
(e.g., number with one year's
service; number with two years'
service, etc.). Also prepare sim¬
products?
your
determined
Production—in
(b)
(The Conference Board,
Road Maps of Industry, No. 1028,
state
your
ume.
for
1955.)
for
be
can
UC
21 states).
9,
of
buyers
with
service—at
piling data for the following:
(a) Sales—annual dollar vol¬
sive of allowances for dependents,
group, which
presumably
would have the largest volume of
at
plans for dif¬
maximum
excess
this
credited
in
vary by states and in
In
15 states UC pay¬
duration.
Sept.
following year.
Waiting
(7)
later.
trust fund are
more
1956)
15,
until the
pay¬
however,
year
a
Motors,
into the
ments
benefit
while
of
date
effective
the
contract
usually
fund
the
to
with
start
differences
the costs of identical
scales.
the
fundamental
mean
the
ployees
you
can
products?
(2) What is the cyclical nature
This
with
companies
in
To what extent
frequency dis¬
a
tribution of the number of
percent of total output.
.
because
(3) Seniority:
relative
importance of each product
.
determine
LOS ANGELES,
R.
Ball
has
with White,
Sixth
Calif.—Richard
associated
become
Weld & Co., 523 West
Street.
Mr.
Ball
was
pre¬
viously in the trading department
of^.~Barth &. Co.
»•
•
-
Volume 182
Number 5468
Continued
from
page
.
.
.
The Commercial and Financial Chronicle
(1313)
Trucks have the advantage over
forms of transportation in
9
other
their
Changing Times and Theii Effect
On the Motor Carrier Industryible.
Invention
march
and
on
science
and
behind in the
be
or
Payments
a
casts his bal¬
consumer
lot, and the results
are rung up
the
If
in
firm does
not meet with consumer favor, its
business shrinks and eventually
ceases to exist.
If a firm's prices
are too high, or its product of in¬
ferior quality, the consumer will
whittle the company down to size.
So consumers by their preferences
decide whether a company will
cash
register.
a
continue to live and grow.
A
corporation cannot maintain
its position unless it is alert, con¬
stantly adapts itself to changing
conditions, and effectively serves
the public. Those who
rest on
their oars are dislodged. The pres¬
the
scientific
of
sure
list
of
of
state
keeps
progress
corporations in
top
The
flux.
turnover
a
is
leaders are replaced by
and some former in¬
dustrial giants have passed out of
the picture.
Of the 25 largest
manufacturing companies which
published balance sheets in 1900,
only two were in the top group in
1953.
Of the current 25 largest,
large
as
newcomers,
12
not even in
were
In
1900.
existence in
dynamic economy,
mere
large size is no assurance
of security as strong competitive
forces can tomorrow replace the
big corporation with the infant
of today.
our
Social Responsibilities of Business
Enterprise
The
of
managers
private
our
enterprise system must also cul¬
tivate awareness of social changes
in order to keep
the system alive.
During the quarter century ended
1929, business enterprise dem¬
onstrated
its ability
in turning
in
out
wealth.
material
great
each
so
was
concern
But
busily
en¬
gaged in looking after its own
specialized affairs that it failed to
grasp the significance of the so¬
cial forces at work, with the con¬
sequence
period
that in
we
a
were
relatively short
compelled to
adopt social reforms that should
have been spread over a genera¬
tion or two. Business was cracked
American
public that gave it the New Deal
and put it in the doghouse. Busi¬
down
ness
upon
by the
that it is not
should realize
sufficient merely to do a
in
turning
goods, as was
good job
transporting
done in the war pe¬
out
or
Business must be dominated
riod.
by good motives, must have the
best interests of society at heart,
demonstrate that it is interested
public service, the human
equation as well as dollars and
in
cents, raw materials, dividends,
and markets. Moreover, manage¬
ment should take their employees
dence
into their confi¬
let them know what
public
the
and
and
Wage
Because of World War II, inter¬
national tension, and the drift to¬
company is determined largely at
the market place. Every day the
American
Taxes and
of
the
The fate of
race.
Pressure
left
must make
we
adaptations
necessary
will
ward
socialism, government taxes
In
spite of this sharp gain, tax reve¬
nue has not kept pace with public
expenditures.
In
consequence,
public debt of all kinds has in¬
in
the
last
decade
and
a
half by $236 billion, or 345%. In
the last 25 years the Federal Gov¬
has
ernment
balanced
the
books
in
only three years.
In conse¬
of this situation, the pros¬
any important tax relief
in near future does not appear to
be very promising.
Wage payments have been un¬
der
constant
upward
pressure,
and this is likely to continue into
indefinite
the
future.
This
as¬
sumption is based not only upon
strength of the labor unions
but also upon the fact that the
the
labor
is
force
increasing at a
diminishing rate. The pressure of
rising costs will stimulate demand
for increased mechanization.
Trucking Industry
It has been said that
the invention of the
portation
social
has
since
wheel, -trans¬
been
sensitive
to
and
be made to the demands of
the times.
As Summer Slichter,
may
economist,
Harvard
said:
•
.
enterprise
a
wide
in
adapting
area
and
top
managers
change
well
for
itself
to
in retaining
private
making will depend upon
ways,
so
the success of private
conditions
new
has
policy
whether
been that of motor trucks.
will change their
the
it
migration
South
in
a study made
Planning Asso¬
of the South,
of industries to
the
postwar period,
that 45% were pri¬
found
was
marily
oriented
to their market,
material, and 25% to
labor. Transportation costs were
important factors in the orienta¬
30%
to
tion
of
industries.
No
longer is
the location of industry largely
determined by the availability of
railroad transportation as indus¬
try settles along strategic points
on the highways, where the motor
trucks provide the transportation
are
It is estimated that, there
than
25,000 American
communities that depend upon the
more
trucks for all of their transporta¬
tion requirements. Modern whole¬
Up to
the time of World War
I, the use
of
trucks
was,
because of the
primitive conditions of highways,
confined
almost entirely to the
city streets. During the war, how¬
ever,
trucks demonstrated their
usefulness, and this gave impetus
expansion so that in 1920
to their
there
were one
in
istered
then,
the
million- trucks reg¬
this
Since
increased
country.
has
number
tenfold to 10 million. This is
ly
as
much
as
in the rest of the
There
combined.
world
near¬
are
as
trucks in New England as
in Holland, Portugal, Spain, Swit¬
many
zerland,
with
Norway,
combined
a
60
around
and Denmark,
population of
million
Motor
work for
transportation
one
provides
out of every 10 per¬
employed in this country. Di¬
rectly or indirectly the average
family has a truck working for it
nearly two months of every year.
Transportation as a whole is a
growing industry as it is inti¬
mately linked with the growth of
the country since all goods pro¬
duced as well as imported from
abroad must be transported. But
transportation's share of the na¬
tion's sales dollar has declined al¬
steadily
Up to 30
traffic
years
was
ago,
practically
handled by rail.
advent of trucks,
but declined to 55% in 1954.
The trucks' share of ton-mileage
age
dropped from 10% before the war
during the war, but it is
now more than 16%. This is not a
to 5.5%
indication, however, of the
important part played by motor
transport since the average haul
good
is around 240 miles.
of fact,
portant
about
As
a
the
natural
carriers
motor
the
advantages,
like
other
all
industries have their prob¬
lems that are pressing for solu¬
tion. In trying to find an answer
young
to these
problems, it is highly es¬
sights be lifted and
be given to
the interests of the shipper. After
all, no branch of transportation
has a monopoly, and preference
is given to those agencies that
provide the best service in the
sential
that
serious
consideration
form
business
to
the
fullest
possible.
Keep program in
line with what your business can
afford.
Beware of
extended
becoming
credit.
on
-
over¬
:
(4)
Your
association
should
continue stressing the importance
of good financial management in
of
availability,
and
speed,
Carriers
Transport
Commission
authority
ride
through
the
rough
period
that lies ahead.
(5) Management should get all
of the information possible about
the operation and financing of the
industry. Northeastern University
has
a
and
practical.
course
in traffic manage¬
ment which I understand is sound
May I suggest that you as
industry avoid a "slug fest"
with the railroads, for by weak¬
ening your strongest competitor
you can dig your own pit. Should
hampering legislation and ruth¬
less competition force the rail¬
matter
the motor truck is an im¬
link in the handling of
three - fourths of all the
r
roads into government
might
Among the steps that
this
connection
can
be taken
the
are
better
utilization
of
labor,
improved
planning and scheduling of ware¬
house forces and drivers, elimina¬
tion of overtime where possible,
and keeping equipment in good
shape.
In this connection, it is
highly important that you main¬
tain adequate and accurate rec¬
ords
cost
and
that
you
what the
in
controls
order
know at all times
may
To cut costs is
is.
score
easily
Nevertheless,
said
than
done.
it is essential.
If
rates are raised beyond what the
shippers consider reasonable, no
matter how justified you may feel
the rise to be, you not only invite
competition from the railroads
and other transportation agencies
but the shipper may find it more
profitable to hire contract carriers
more
,
have
or
his
own
fleet
of
trucks.
(2) Modernize equipment. I do
know what the score is for
England, but
basis
about
trucks
are
er.,
a
larger trucks.
a
on
a
national
one-fourth
eight
There is.
than
years
old
the
of
or
old¬
growing need for
At
present,
more
third of the total is made
up
of light models of 5,000 pounds
or
less.
However, the proportion
of heavy trucks is on the increase.
About
the
ownership,
that
12%
of
medium
classification
the
trucks
heavy
as
are
and
compared
less than 61% in 1946.
in
heavy
with
and
agencies would follow
behind on the "death"
the
below
national average.
New England's share
of total
na¬
tional traffic for the first quarter
was
1948.
only 5.4% as against 7% in
At present, New England's
of total national trucking
share
tonnage is less than our propor¬
tion of the country's population,
which is 6.1%. These comparative
data
emphasize
the fact that
view of the relatively smaller
the
in
crease
in
available
traffic
over-all
New
in
in¬
England,
as
compared
with
other
regions,
effort,
imagination,
and
better management are necessary
in order to stay in the race. This
is a challenge that must be faced
by the New England trucking in¬
dustry.
This calls for vigorous,
cooperative action and emphasizes
the urgent need for team work, as
is evidenced by your association
activities on many fronts.
more
competitors to the
industry are the rail¬
For
roads.
coasting
railroads
riers to obtain
a large amount oi
capital which otherwise would not
be likely under unrestrained com¬
petition.
our
transporta¬
legislation is a hodge-podge
antiquated
regulations
that
have seriously handicapped the
common
carriers from adapting
their operations to the require¬
ments of a dynamic economy. A
new approach is
urgently needed
that will provide greater latitude
for
aggressive
experimentation
among all transport agencies.
tion
of
watching
along,
they
now
utilization
flexibility of scheduling, rail¬
for
make
and
greater
roads have dieselized
or
diesel
to self-propelled
switched
cars.
About
two-thirds of the Class I railroads
diesel-electric
have
locomotives.
Since the end of the war, the rail¬
spending one bil¬
annually for
new
roads have been
dollars
lion
equipment. Furthermore, the New
Haven, Pennsylvania, and about
20 other railroads, have gone in
for
piggy-backing. The Interstate
Commission has ruled
Commerce
that
railroad
a
need
certificate
truck
not
for
have
a
piggy-back
transport of highway trailers.
An
committee
of
Administration
Cabinet Members last spring came
out
for
aimed
transportation
giving
at
system,
railroads
the
latitude in competition with
trucks
other kinds
and
dations
would
passenger
main
The
portation.
set
the
ent
give
carriers
their
own
regulations
principle
now
rates
and
dictates
that
freight
fective
interest
forms
contribution
of
trans¬
within
op¬
ef¬
their
by aggressive experimenta¬
This is in keeping with the
spirit of enterprise that has made
this
country great.
The major
types of transport are capable of
meeting their present problems
and improving their efficiency if
the heavy hand of government is
lifted so that management will be
tion.
able
to
its
use
initiative
and
in¬
genuity.
This country is headed
for an era of great expansion and
every effort should be made to
give the transportation a chance
to make the great contribution it
is capable of doing when it is not
held down by governmental undue
restraint.
Hill Richards &
Qo.
Offers Pryne Stock
Hill Richards & Co.,
investment
bankers of Los Angeles, Calif., are
today
(Sent.
29)
offering
52,000
shares of Pryne & Co., Inc. com¬
stock at $5.75 per share.
mon
Pryne & Co. is engaged in the
manufacture
hold
and
sale
of
exhaust
electric
house¬
fans,
re¬
cessed
lighting fixtures, kitchen
range ventilating hoods, and infra¬
red built-in electric ceiling heat¬
The
ers.
in
1925
tion,
organized
company was
as
original
California
a
is
and
believed
corpora¬
household
exhaust
the
both
be
to
of
manufacturer
and
fans
re¬
lighting fixtures. Pryne's
plants are located
in Pomona,
Calif., and Keyser, W. Va.; with
a subsidiary, Pryne & Co. of Can¬
ada, Ltd. in Toronto. The company
cessed
throughout
the
offices
sales
maintains
also
country.
Proceeds from the underwriting
in
will
be used
full
long-term
to
balance
be
part to
added
repay
loans,
bank
to
in
the
working
capital.
Capitalization
of
the
company
outstanding upon the com¬
be
to
pletion of this offering is 163,432
shares
of
$1
par
value
common
stock.
Frank Keith Adds
freedom to
by
(Special to The Financial Chronicle)
easing
SHREVEPORT,
Blake,
T.
free
to
cut
Rialda
La.
Cloy,
.
S.
R.
Earl
L.
—
Collier, G. A. Farber, Mrs. Elsie
McClendon, Daniel
son, and
be
all
efficient
power
and
recommendations, the
would
a
of trans¬
exercised by the
long hauls.
in
portation should be given the
portunity to make the -most
K.
on
inher¬
competing
carriers
agency is the most
economic.
Public
ever
Interstate Commerce Commission.
railroads
all
common
unified and coordinated transpor¬
tation system Which will enable
the community to employ what¬
recommen¬
new
of
Under these
rates
national
a
guiding
advantages of
forms
sweeping changes in the
country's
more
In the formulation of
policy,
of the business dwin¬
are fighting
In order to reduce costs and
but
back.
to
the
decades
their share
dle,
given regulatory
rates and charges,
of other matters.
number
a
should be to preserve the
(7) Truckers in this region must
work harder to get the business
than in many other sections of the
country since our
economic
growth is at a slower pace. This
is reflected by published indexes
of tons transported in intercity
service. With 1947-49 as 100, the
New England index for the first
quarter of 1955 showed the small¬
est gain of any region, and was
20%
was
over
While this Act has imposed limi¬
tations, nevertheless it has made
it possible for well-managed car¬
transport
march.
not
New
find
the motor
truck industry and all other major
closely
trans¬
Nevertheless,
(6)
you
motor
In order to bring about
greater stability in the industry,
Congress passed the Motor Carrier
Act in 1935. Under provisions of
this Act, the Interstate Commerce
members
can
the
lations.
the
were
(1) Cut costs in order to make
attractive
to
shippers.
in
1930's
industry was in a chaotic
condition, which spread to rate
cutting and evasion of state regu¬
that
trucking
Suggested Steps to Improve Posi¬
of
the
so
The strongest
tion
In
port
debt
costs.
rates
sons
most
Despite the spectacular growth
and
six
over
or
times that of New England.
whether
enterprises freight transported bv all forms
of transportation in this country.
top managers."
or
the
of
upon
National
<
private But with the
enterprise, for the public has a autos, and buses, and the exten¬
friendly ear cocked for what it sive development of highways,
has to say. So in this period of the proportion handled
by the
better
economic
understanding, railroads has dwindled. At the
business should plot a constructive wartime peak, the railroads ac¬
counted for 72% of the ton-mile¬
course and provide the- right type
adjustments
mar¬
technological changes,
and has continuously adapted it¬
saling and retailing rely largely
self to the varying needs of each upon truck transportation. It has
region and era. During the 100 been said that the motor carrier
is actually an extension of the
years prior to 1920, the dominant
means. of
transportation shifted assembly lines of our great plants
from
freight wagons and canal and an extension of, the shelves
of our retail stores.
boats, to railroads.
The most significant transporta¬
tion
development
in
the
last Problems Faced by the Trucking
Industry
three and one-half decades has
tunity to restore faith in
that
consumer
Committee
service.
ever
all
so
is the
Based
the
by
ciation
Business now has a golden oppor¬
leaders
ket.
quence
pect of
since 1933—from
IV2 cents to around 5V4 cents.
of
has played
an
important role in the decen¬
tralization
of
industry.
In our
dynamic economy, industries are
on the march.
This is a sign of
healthy growth, although it is
tough on the old settled commu¬
nities like? New England. Indus¬
trial migration has
been moti¬
vated by many forces and has
varied by industries, but the do¬
one
the
extent
/Regulation of Motor Carriers
reinvesting earnings and reducing
The trucking industry
minant
into
an
For it is a wellknown fact that people mistrust
what
they
do
not understand.
their policies are.
and
to customers.
have risen six-fold since 1939.
creased
flexibility,., and
they can adapt their pick-up and
delivery schedules to the needs of
customers. Railroads, on the other
hand, are confined to their tracks,
and
are
dependent
upon
the
trucks to bring freight to their
terminals, and to deliver freight
speed
(3)
Improve working capital
position.
Plough back earnings
41
been added to the staff
Keith &
O.
Simp¬
Truman W. Sylvest have
of Frank
Co., Inc., Johnson Bldg.
I
42
The Commercial and Financial Chronicle
(1314)
should forget, but which all of us are
overlook in the heat of argument. First of all,
things none of us
to
prone
communism is not
Communism, like democracy or monarchy,
spcial and economic organization, and a com¬
capitalism.
is
form of
a
necessarily Kremlinism; indeed Krem-
really not communism at all, but a sort of state
linism is
munist is
who believes that communism is to be pre¬
one
ferred to democracy,
of
monarchy
or any
of the other forms
social, political or economic organization. *
If
we
or
or
our
from first
religion is to be preferred to another. And if we really
in f^edom of speech we cannot complain if a
communist in our midst sets forth orally or in writing
what he finds to be the merits of communism.
These
things are basic, and they must never be forgotten.
Another simple truth is this: If the Russians or the
Chinese
or
other people come to the conclusion that
any
of political, social
organization, that is their business and not
than this
you
that the
state
the country.
and economic
of
the
as
it
obviously their right to proceed in that way
even as it is ours to go in another direction — and we
should be the last to undertake to say them nay. And if
one
article of their faith runs to the effect that their
system is so superior to all others that natural forces
must in time bring the whole world under it, then that
too
is
creed
If the philosophic enthusiasts of the
send missionaries around the world to
their affair.
wish
to
preach their religion (for with many that is \yhat it is)
even as we send our Christian missionaries, it hardly lies
in
our
mouths to
complain.
The trouble is
that
few fanatical Russian leaders
a
refused to leave communism on any such
detached, philosophical basis. They call themselves com¬
munists, and they pay homage to Marx and Engels, but
they modify, interpret and rewrite these gentlemen to suit
their own needs. Their thinking—or at least that of Stalin
—seems to have been formed and shaped at least as much
to Russian Czarist traditions of imperialism as by any
have in the past
abstractions of Marx
dear to them
or
Engels. Dictatorial power was as
and they soon passed from
to other men,
as
general philosophizing about trends of the future to the
idea that organized "communism" in Russia owed it as a
duty to hasten the conquest of all peoples. The ends, in their
minds, justified any means. The result was Kremlinism.
A number of very
practical results ensued. The com¬
party became not merely a body of men and
munist
women
dred
who held
common
views about economics and kin¬
organization controlled by the Krem¬
lin and fired with the^ purpose of keeping themselves in
power and bringing other nations under their rule. Under
subjects, but
Stalin, it
an
was soon an
embodiment of Czarist imperialism,
Hitler
treachery, and professional troublemaking all over
the world. A member of the communist party, if he was to
have the blessing of the Kremlin, had to be not merely a
philosopher but an undercover agent of the Kremlin which
cared for many things more than any real communism.
The real
question
now
is not whether and to what
extent these leaders in Moscow
devotees of
philosophi¬
cal communism, or what they believe the world will be like
a hundred years from now, but whether
they can be relied
upon to keep their word, whether they are now willing to
have their own system at home and permit others to have
their system abroad, whether they are ready to put an end
to underground activities in foreign countries, and in gen¬
eral whether they can now be depended upon to act like
nations generally act in a civilized
age. No one need in¬
quire whether they are prepared to renounce Marx and
Engels or the general lines of social and economic order to
which they have dedicated themselves. So long as they
deal with other peoples in a
straightforward and respect¬
able way, such matters are none of our business.
Let
us
not
Kremlin have
are
forget that governments far from the
guilty of treachery and the like in
been
modern times.
Where
was
more
bald-faced double deal¬
ing to be found than in the case of Japan. Where was per¬
fidy more consistently practiced, and indeed glorified than
in
Hitler's
instances
of deceit
Germany, or in Mussolini's Italy? In these
found deliberate, carefully planned schemes
and destruction.
Their philosophy was about as
we
repugnant to
us
as
that of the Kremlin authorities.
In¬
outlook
that for the
as
the
the
as
In
humble opin¬
my
for
the
is
was
as
in
country
the
economy
good
today
history of
this country.
If you
study the situation care¬
you analyze the various
fully, if
economic trends that
develop¬
you will
are
ing in the United States,
the
reach
ought
carefully and
very
conclusion
that
a
which
to
the
consider
,
which
to
the
tention.
A
Tight Money Market
What
they?
are
First,
the
money market has become tight.
The credit policies of the Reserve
■authorities have assumed the form
of
active
restraint.
ability of
bank
the
The
credit
avail¬
is
rapidly
The indebtedness
member
banks
and
the
The
new
capitalistic system is evolving in
country, a system that does
not exist anywhere else
in the
world, a system marked not only
by its tremendous productive
capacity, by its size, by its ability
to
produce and consume, but a
system which in its social aspects
has no equal anywhere.
this
rate
has
been
raised
to
obtain bank credit.
Banking
them,
measure
then
and
A
much
reach
Short-Range Outlook
income
taxes
partly
is
individuals
of
constantly
as a
after
increasing,
result of the
sub¬
very
stantial increase in wages that has
been
and
granted
that
will
be
granted; partly because of full em¬
ployment, the ease with which a
job can be obtained.
When the
people have money and safe jobs,
they spend, and naturally this has
an impact on our economy.
Construction
contracts
in
mind
that
cost,
but
the
awarded
it
isn't
so
rather
the
availability of credit. This rate
of 21/4% certainly is not high. The
prime rate of 3J/2% is not particu¬
larly burdensome
First, the short-range outlook—
let us analyze the forces operating.
There are strong forces and there
are weak forces operating
in this
economy of ours.
What are the
strong forces?
Disposable personal income. The
net
Bear
-
conclusions.
good
as
entire economy of
outlook
ever
be discerned
can
discount
question, "What is the outlook for
hanking?"
I
would
ion
It is
answer
is
2JA%, the highest in 20 years. In
all probability the prime rate will
be raised again, and it is becom¬
ing more and more difficult to
investment
they prefer communism to other forms
ours.
To
one.
without
economy
Reserve banks has .increased.
Investment
believe
our
investment
banker, particularly,
ought to pay a great deal of at¬
page
of
light
no
now
being curtailed.
The Outlook for
condemned
believe one form
is to be condemned, or may be
scheme of things because they
is
and
businessman
of
Continued
there
that at present certain weak
spots
should not
we
economic organization, any more than a man
woman
a
under
that
(seems to us
such
or a
man
political
But
prejudge it.
freedom of
a
It
Thursday, September 29,1955
.
shadow
is
the Kremlin—or is it?
believe
thinking in this country, we cannot con¬
woman because they have come to the
conclusion that communism is the most desirable form of
in
demn
on
as
.
life
was
not as greatly different,
commonly supposed. It is to be
devoutly hoped that we are now passing into a different
epoch in international dealings? Hitler, Mussolini and
Stalin have passed from the scene.
Our problem in dealing with the Soviets is to deter¬
mine whether they, from this time forward, can be de¬
pended upon to act without deceit and trickery—in other
words, whether we can feel reasonably sure of their bona
fides? This, admittedly, is a very difficult question. Cer¬
tainly the history of the foreign dealings of Stalin can
give no assurance to anyone.. But this is a new regime in
from the I Kremlin
We See It
As
outlook
their
deed
Continued from first page
.
mind
are
the
fact
if you
that
bear
in
corporations
paying
a 52% tax on their
What you should consider
income.
is the
and
availability of bank credit,
is being reduced.
that
While
the
discount
window
is
the Reserve authorities are
carefully scrutinizing every appli¬
open,
cation
for
loan
a
loan, and whenever
a
is
considered
not
best
interests
may
the
to
not be granted.
of
the
country,
it
Money is tight and is becoming
tighter.
Experience of the past
has taught me as well as others
that
when
the
credit
authorities
restriction
later
or
is tight, when
money
Reserve
it
follow
policy,
achieves
its
a
sooner
desired
are
at
a
very
high level.
Al¬
objective.
though home-starts are decreasing,
are rapidly becoming a na¬
Therefore, anybody looking into
building activity in
general
is the
tion of middle-class people; slowly
immediate future cannot for
fairly good. No matter where you
a moment overlook the
but steadily poverty and destitu¬
impact of
travel over the length and breadth
tion are being eliminated.
the
The
money
market on business
of this land, you see new office
economic security of the people
activity. Tight money will have
buildings and new factories going
of this country is as great, if not
an impact on the flotation of taxup; construction of public works
greater than in any part of the
exempt securities.
In all prob¬
is also on a high level.
world. We have long since mas¬
While homie-starts are decreas¬ ability the volume will slow down
tered the art of production, and
and this in turn is bound to affect
ing, the houses that have been
now
for the first time we have
public
works.
Tight
started will be finished, sold and adversely
learned
the
art of
distribution.
furnished. All this generates pur¬ money is bound to have an im¬
This is all to the good of the econ¬
pact on capital expenditures by
chasing power.
omy of the country as a whole,
corporations.
Tight
money
al¬
Next, seasonal focres are oper¬
and so it ought to be good for the
ready has had its effect on mort¬
ating in the economy. This is the
investment banking business.
gage credit, and tight money also
time when
the
farmers
We
harvest
The way to
approach the prob¬
outlook, in
my opinion, is as follows: First,
let
us
look
at the
short-range
outlook; I mean what may take
place during the next six or nine
months, and then let us look be¬
yond to the future. Then after we
lem
of
determined
have
outlook
be
economic
the
for
able
economic
country,
draw
we
certain
will
conclu¬
processing and
distribution of crops creates ef¬
fective purchasing power which
favorable
has a
impact on the
economy.
Another
return to school
are
right at the
beginning that it is not easy to
predict the future.
The art of
forecasting is a very hazardous
one, partly because our vision is
limited, partly because we live in
a
dynamic economy subject to
great changes, and partly because
psychology plays such an impor¬
tant role in
our
economy.
T""*Our economy is a free one, and
what happens in the economy is
result
thousands
decisions
of
of
the
millions
and
You
we
ing like
air.
see
I
know
wake up
an
made
executives
ultimate
of
that
and
by
by
consumers.
sometimes
in the morning feel¬
eagle soaring in the
We walk down the street and
display
buying
a
resist
matter
have.
how
ties.
We can't
of them, no
many
ties we may
of
And at other times
feeling like
we
wake
a
The economy of
the country re¬
the psychol¬
ogy of the people. It is therefore
extremely difficult to predict the
future.
The only thing one can
do is to analyze the forces opera¬
ting in the economy,- weigh and
flects the mood and
of
operating
in
in
reached
the
Gross
a
140
in
economy
we
National
that
today
The
are
great boom.
August.
high level.
they become
cate
the
activity
Employ¬
passed 65 million.
new
as
strong
very
industrial
has
ment
we
are
Product
The
is
at
in
the
midst
To this should be added
of
wave
confidence
of
attitude
great
has
that
nothing can go
wrong
in this country.
If the
trend of business activity should
turn
downward
powerful
there
Government
is
in
an
all-
Wash¬
ington that will step in and pre¬
vent
any
material
decline
in
economic
by
an
All
from 50 to
tight money
policy is to keep the economy
healthy
and
to
prevent
large
swings in the business cycle. Per¬
sonally, I believe that the Reserve
authorities
The
manifests
itself
in
the
attitude of the people to buy now
the commodities and services
all
they need
or
desire with cash
or
credit.
Home mortgages have increased,
credit is at a new peak,
consumer
and bank credit
is also at
high
this
level.
All
a
reflects
new
the
great confidence which the people
have in the Government and in
the future of this nation.
such
second
weakness
mention
may
automobile
at
producing
at
very
a
doubt
selling
cars
rate.
Personally,
during the re¬
whether
produce and sell
can
cars
at
first
eight
the
all
cars
annual
months
as
rate
of
-
year
many
the
of
the
year.
know
were
models
the
have
maining four months of the
we
one
is
We
and
fast
that
present
situation.
been
I
absolutely right
a policy.
were
in adopting
that a great many
bought, partly because
were
credit terms
partly because
new,
were
easy,
and partly
because individuals hold abundant
cash.
Therefore, I have reached
the
conclusion
that
in
my
mind
own
decline in automobile pro¬
duction and sales is likely to take
a
place.
And
if it take& place, it is
bound to have
an
impact
on
busi¬
activity.
ness
activity,
accompanied
increase in unemployment.
this
70%.
The purpose of the
We
a
which
swept the country. Everybody, or
apparently everybody, has adopted
the
has had its impact on the equity
market, because as we all know,
margin requirements were raised
a
All the figures
available, indi¬
great boom.
a
some
motherless child,
and no matter what bargains are
offered to us, we refuse them.
up
number
in the midst of
state
me
is
find, therefore, that there
a
index
let
factor
and the prepara¬
with the result that
Predicting the Future
Now
seasonal
tion for Christmas.
forces
sions for the profession.
The
crops.
You
the
to
the
their
Watch
It
is
the
Auto
therefore
Industry!
for
necessary
a
businessman, in general, and for
the investment banker, in partic¬
ular, to watch the automobile in¬
dustry more carefully. How will
the
be
new
the
models
terms
go?
under
What
which
will
they
will be sold?
Will the volume of
sales
1956
of
the
model
be
as
large at that of the 1955 model
was
during November and De¬
cember of last year? It will give
Volume
you
182
Number 5468
indication
an
.
.
The Commercial and Financial Chronicle*
.
witnessing
to the short-
as
outlook.
range
The
third
housing
first
tion
factor
starts.
half
is
decreasing
the
We find
the
in
Whereas
of
in
pact
indirect
country,
business activity. The inpowers
of the Governare far
greater than ever
favorable. If it is in the negative,
the answer will be unfavorable,
on
You
starts
exceeded 1,400,000 units at
seasonally adjusted annual rate;
today they are at an annual rate
of
1,200,000.
And this trend, in
ment
move-
Just think for a
Just think for a
rax—(
First, the supply of Wexempt
it means when a man leaves New ernment have been used and will
York State, where he lives in an be used to keep the economy securities will continue to grow
apartment, and moves out to a sound, to prevent wide swings in rapidly. We still have a great denated, and because the no-down- suburb. The moment this is the business cycle and avert large mand for public works; we are
payment mortgage is a thing of done,
his entire mode of life unemployment.
still building great highways and
the past.
undergoes a change. In New York
PL,n(roc
{„
parking facilities, and we need a
Fourth, private indebtedness is City, who needs a car? And if you
and"Trade
great many schools. As the standvery high, and I doubt very much have a car, where will you put
living of the people rises,
whether
this
indebtedness
can
it? And if you have a place and
Four, industry and trade, as as the population grows, more and
opinion, will continue because
supply of mortgage credit is
becoming tighter, because the 30year
mortgage has been elimithe
While
l
__
_
wit-
you
are
situa-
you
are
wlek
should
we
reach
a
of loans
borrowing
would
new
have
impact
an
business ac
on
than
immediately
A
e^e
the
was
to
be^n
ventories'may
in
chanee
the
w?« efnh£ve
tones can nave
and' '54
1953
trend
an
at
irf !
f
attitude
of
and
will
we
witness
because
of
^
forces
operating in our economy,
the
decline
nor
lest
cannot
go
long.
very
decline
The
when it materializes will be
by
mild
will be followed
in character and
•
far,
very
healthier outlook.
a
This
outlook
immediate
the
is
a
hattan to
Nassau
county, and you
win find that places which a decade ag0 were nothing but big potato patches are today large communities.
It is the dynamism in
the economy.
for
business, but as I indicated to
you at the beginning, you should
be interested not merely in the
RoIe of Research
should
You
research was looked upon as a
luxury. Only a very large comyou
pany could afford to have research
you
men, chemists, and engineers to
can
tell what the future holds in work for them.
That generation
store for us, yet at least it is de- was practical.
They wanted
sirable to have a vague idea of merely to produce goods and not
where we are going.
ideas. Today billions of dollars
larly with what this may mean to
•
you
in your profession. After all,
have 40 or more years before
and I repeat, while nobody
let
So
into the future,
look
us
The°fitureSof0t°he Corny
of ttds
because
bright
fairlv
is
countrv
is a dynamic one.
dynamic today than it
has been in many a decade.
our
It
economy
What
the
make
that
the forces
are
this
One, the population is indynamic
economy
time?
rrppsine at
at
which
rate
a
is
this
If
a
decade
^
.
The
.
dynamic
economy
a
is
ana
ana
a
noi
iacior
the
PQP„rr.h
rommunist
communist
the
most
the
China
c^rnna
then India
would
wouia
nations
be
oe
im
world
«ru
prosperous
«
,
.
in
i
makes the outlook so fa-
What
vorable
economy
our
m
is
that
growth of population is accompanied by a steady increase
in the standard of living of the
the
There
people.
are
more
people,
Wiph ^^L'lV^sTalida'rVof^livhig
lloLc
increase-,
as
ihpir
meir
rp-i
real
inrnm-
o
rises,
want more gooas ana
ices.
They
want
better
a
tion for their children,
better
homes
and
-
serv-
e
uca-
lney want
public
better
services, and they have the money
to pay for them.
This is a lactor of dynamism in our country,
Not
only is the
population in-
of
living,
but
I
j
cin^P
the
nf
nrct
hn«inp«
mn«t
perhaps keener than ever before.
And in this respect the American
economy
other
in
differs from those found
free nations.
In other
free nations where industry is
concentrated, it is the result of
cartels and trusts. In the United
States cartels and trusts are outlawed.
Competition is keen and
the ultimate
consumer
benefits
eign situation
la
maVe
^cond cohdusTon
At
„arri_
!»
py-nrppj-it ic
ment
a
tirrL
•
in
free'economy,
d
that
a^ree ^onomy^that
verv
doeg
hpflr
not
great
the Govern-
dicta{e
the policy
of management nor does it tell the
ultimate
consumer
when,
how
eliminate nnfnre<5Pen
rntactrnnhp<?
other
nalamities
VOW
mnst
reaeh
adds
our
How
will this
0^^100'
economy.
^tLr^
affect
in
the
fttect
the
vou
How will it
Three, the Government's role in investment banking business? The
ernment
jn
js
the past.
0ne
of
the
The Gov-
sists of originating and distributing
im-
securities, and that in turn raises
the question, will there be a supply of securities? Will there be a
demand for money on the part
most
portant factors in the economy of
tbe
COuntry. The Government
piays a dominating role in the life
0£
has
^be
farmer
played
home
a
building.
The
Government
dominant
role
in
The expenditures
of the Government
are very
reach
as
The Fund Phase
4
And
decided to specialize in utilities
forward with a high de2ree of certainty to a long period
of great activity.
Three, as the merger movement
continues, as smaller corporations
are brought together to form large
entities, and as these large orgamzations reach the position
where they can approach the capimarket through the sale of
stocks and bonds, the newly-
now we come to the final
large
your business is a complex one,
because the methods of financmg are constantly undergoing
changes. The money markets are
in constant flux. If you want to
participate in a competitive bidding, unless you are sure of the
forces operating in the money
mg today has become
a highly
complicated profession. An investment banker must be a student of business, a student of
business trends. He must be well
informed as to the forces that
operate in the economy,
Next, he must be a keen student of the money and capital
markets. He must know what
guides the policies of the Reserve
authorities and of the Treasury,
issued securities will have to be what measures they may take
^d dy the 1 n v e s m e n
wil1 niav
an
under certain conditions and what
impact these meas"r^ will have
,
that the demand for funds fittest applies to Wall Street
to finance the economic growth of does to Main Street.
of
corporations or other borrowAnd, too, will there be a
supply of funds capable of absorbing these securities?
If the
ers?
is in the affirmative, then
the outlook for your business is
answer
as
it
11^. country /"d, to ^help econ0 ieali
undevelopedcountries W. T. Grimm Go. Adds
bound to be very ^reat. Wheie
^l the ^°^y p°e^piefr aT?largee
b
|
t
Cramblit to Staff
under eon ea
,
y^^
insti-
CHICAGO, 111.—Lue D. Cramiii.-i.ue u. uram-
But be that
blit, formerly with the investment
department of the Central Life
bec0me
tutional in character
the suPpW of funds at
^he disoosal of life inSUrance Com-
Assurance Company, Des Moines,
the standard of living
^ become associated with W. T.
™ & <~o 231 South La Salle
Stree , fmancml consultants specielizing m mrgm cramblft is
is
Placement loans, lvir. uramont
grows and
midrile-clat;s
become assoeiafpd with W
a
rises
...
wc are becoming rapidly a naneonle
and
middle-class people like to save
T
graduate of Northwestern Uni-
vpr^itv
versity,
(1948)
01 miaaie-ciass people, ana v
>
cphnoi
£cnooi
nf
01
Cnmmerpe
commerce
and received his law deUniversitv
of Towa
f^rom the University of Iowa
Saving habits undergo constant \
)•
i
changes, as you can see from the
Two With Oscar Kraft
rapid growth of mutual funds.
Therefore, in my opinion, there
(Special to the financial chronicle)
*s no Question at all that the
T ^ AN/-;Ft
pai;f
Tamp<?
supply of funds seeking outlets in K raliowav and Louis M IlTf-
security marlrets wili also be
sen have become affiliated with
„
Oscar F. Kraft & Co., 530 West
At times the supply will be gjxth Street,
greater than the demand. Money
rates will go down; bond prices
Beer & Co. Adds
will go up. At times such as the
(Special to The Financial Chronicle)
present, the supply of funds will
NEW ORLEANS, La.—Eugene
not be equal to the demand.
,
—
—0
Money rates will go up; bond B. French has joined the staff of
prices will go down. As invest- Beer & Company, 233 Carondelet
ment bankers you ought to know Street, members of the New York
the reasons or the forces which and New
Orleans Stock Exinfluence the demand and supply, changes.
the economy today differs greatly investment banking business con- Sreaitbat
a
f°°d aa the outlook for the
is keen, the me pisposa
iiie insura c c
weak will be weeded out. The panies, mutual savings banks, savprocess of the survival of the fit- '"gs and loan associations, the intest will continue. And no matter vestment trusts, and pension funds
how you lock at it, even if you wlU a11
as tke population
^00
from
I
slon
the United States.
fh
you
a
tbe dynamism of
that
vest™nt banking business is
to
can look
.
avoided. The long-range outlook
for the United States today is
bright indeed.
lategt
to
reached
on the economy of the country,
impartan.1 rale in tne future, more
For those who make it their
fore, if you take all these factors ?° ^a" ."V
fn^iLinn
J)us1iness tou become professionals,
into account—and many more can
to J<n<!w .their busin^s well, the
be mentioned—you will reach the equipment requires large sums outlook is very bright indeed,
conclusion that our economy is a
money. At the same time there Those, however, who think that
dynamic one; that a new capital- 1S }he. P°sslblllly that we may be the investment banking business
istic system is evolving in the entenng a prolonged period 01 js
an easy road to success, a
United States which augurs very p,fac®*.
a in a,rn wli reYJve means of making a fast dollar in
well for the future. This briefly
Je international flow of capital, the market, they will soon learn
js the long-range part of the fore- Xou' therefore, reach the conclu- that the law of the survival of the
downs, major depressions will be
the
therefore
ffrr?d sAtocksuas wfU as ^T1011 ?a??t' y°,U may l0Sf y°urLshi,rt*
stocks. And those of you who have And therefore investment bank-
are
installation
that
means
the
becomes
have
fQi fundg on
entirely
different from
what they
were
three or four decades ago. Theretoday
labor-saving devices
necessity.
Otherwise
fall by the wayside. And this
of
the
^ ^ more on your
used or not is immaterial, because Personality or personal charm.
atomic energy is merely energy; Nowadays if you want to succeed
the development of atomic energy you must know your business and
eveiyboay in business must make otner calamities, you must reacn
sure that he 1S a low-cost pro- the conclusion that while the
ducer' and a low-cost distributor, economy will have its ups and
That
and
is that the outlook for the in"
t
v
Moreover, ance the cost of la- eliminate unforeseen catastrophes,
neonle
bor 1S constantly increasing, such as an atomic war, floods or 0I.lrrie Pe°Pie
rising and an increase or reduction in
we are them can have a far-reaching im-
creasing, accompanied by a
standard
M
capital
rially. Whether atomic energy is
research, has an important im- where competition
0
sirengin.
01
case,
lu bg
TwQj ^
^al^fUinHC°?p^y' Lp^nnL116^ much and how to spend. A free
value^ and dens^oys old ones A economy is bound to have its ups
d^
y' imilrLf
anu downs- Ir? a free economy,
was
were
itl
corporations, competition is keen,
th£
.
so
done
the cost of doi
But despite the fact that busi-
old ones. Research creates, new
a«d «ew methods of proAuction. And all this has an imPact on the economy of the coun-
thought impossible pact on .obsolescence. As a new
hut that in
itse?f is nS
iml machine is invented, it renders the
nortant
Growthof SonSation exlsting one obsolete and creates
-lone is not
factor of strength
a demand for new machinery.
aso
'o
or
forwaTd
certainty
bodteand
ness is becoming more and more
concentrated in the hands of fewer
cast for
is more
and
longer
a
the demand
?hS
It is based
(Qrces
poration is in
being spent on research, ereating new values and destroying
are
Future
the
Into
Look
A
look
high degree of
a
The labor situation and the for_
Two, research today plays a
much more important role in the
be concerned with the long-range:veconomy of the country than ever
outlook for business, and particu- before. Three or four decades ago,
outlook.
immediate
funds
both
equilibrium.
years »o
mlnt bank?nrcan
wlth
from it.
.
„
,
vears
supply will
over
mand and supply will not be in
a
suburb> you can>t get
ak)ng without a car
It bec0mes
a necessjty.
You don't have to go very far to
prove
this statement.
I believe
you merely have to go from Man-
strong
the
in
liye
declire.
Two,
spend
and
looking
supply will be great
There will
0f course be times when the de-
sneciaiLy<in tha°t ffeW tTinwst°
That costs money. A large corporation has a better chance for
access to the capital market than
a small business. A large cor-
lt leads to an entirely
different mode of life. Once you
minor
a
will
you
demand
ers.™"st buy the latest lab0r" use of to be substantial. First, the the mvestment bankingNowadays
bound power will increase mate- highly competitive.
business
savinS devices.
«0 with iL
Then it will level
unpredictable.
oft
and
nursery
eivprar ShV
rlcfl is
;
the consumer
i
If
The
higher
a
have
will go to the
you
for
a better position to does not mean that it would do
establish a research organization away with the distribution of
g
t d
j f money After all you than a small business.
A large power. Hence, the demand for
g
allree landowner corporation is in a better position funds on the part of the utilities
And then
^
tQ
to diversify its product as well as for a great many years will confQr yourself an outdo0r stove and its markets than a small enter- tinue to be heavy.
The utilities
activity
having an outdoor stove you have Prise. Hence, the merger move- will endeavor to obtain the needed
level in
got to buy all of the utensils that ment will continue unabated.
capital by offering bonds, pre-
One, business
the
phase. Just as businesSj in gen.
order to overcome it, manufactur- the part of corporations is also e''a1,. 's highly competitive, so is
fjnes^ seed st0re and to the finest
have, therefore, before you
strong factors and weak factors,
and on weighing and measuring
one against the other, I reach this
will continue
P^k g.feat
busjness is yery high> an<J that Jn
of the rfamagp<?
all
uo
than this room,
husi
on bu
nn
You
conclusion:
vou
ec'nomic
the {act that
Qn
y°u become a gardener and even
though your lot may not be bigger
hiven-
of
h^napt
impact
an
activity.
ness
natch
fildated 'a"s
be
durtae
sQund
adda^JteSiveR^cSSs
you ha've done to yourself Then
'torbe?n%cclu aTed1ThTnrocaccumulated^, tne proc
nave
^ day
Sed^b—1
doe
g
to buy a_ki1 of tods all kinds of
produced
to ultimate
sold
being
are
t t
f
being
are
«"s
Saturday
on
.
tones stimulates business because
goods
and
But the moment the man moves
mt° a suburb he is a house owner
Next, inventories are accumulating. The building-up of invenmore
busy,
afternoon or on Sunday - well, »P
„ paQP;Ve
othCT has been
unless you just like to atone for =°™Pa"y or several companies
your sms ,t is a good thing to haye faeen consojidatecL This
tion where the repayment
exceeds
of
"anS are .undergoing better services are needed, and second conclusion. The first one
8*eat changes. We are in the midst therefore the tax-exempt market was ^at the long-range outlook
J£. a ™jor ™rger movement m will continue to flourish for a for ouf economy is food The
lucky enough to find a
nessed during the past year.
A parking place, when are you gomoderate decline in the growth of ing to use it?
During the
it
students
You will have to *
UVIUOUU
fluctuate
period of
.
debt
be
market.
' ~
watch the flow of funds and caoibefore. The Government is in a
The Demand for Investment
tal.
You must follow closely all
position to influence the volume
Funds
developments affecting the money
of credit and the availability of
So let us consider for a moment market in order to be able to
bank credit. Through debt man- the demand for funds. Will there guage the trend. A correct aoagement, the Government is in a be a demand for funds? Will the praisal of the money market is
position to influence the capital supply of securities increase? The the key to success in your dtomoment what market.
The powers of the Gov
moment what market. The powers of the Gov- answer is yes.
)
fession.
decentralization
a
my
continue to grow at the pace
to
are
money
43
away
from the congested
cities into the suburbs, and we
find the regional migrations of
the population from the East,
from the North to the West, to
the Southwest.
ment
housing
year
decentralizathitf
great
a
movement
(1315)
44
The Commercial and Financial Chronicle
(1316)
1119994448567
for
11995541230
Governments,
bank which must remain
Bank and Insurance Stocks
WALLACE =
By ARTHUR B.
7
=
This Week—Bank Stocks
Bank
The
of New York
■'
.
back to the year following the end of the
American Revolution. It started business in June, 1784. New York
This institution dates
had had
time, and only one other existed, Bank
bank up to that
no
America, in Philadelphia. The organizers of Bank of
New York subscribed to one thousand shares for a total of $500,000.
North
of
Hamilton, in
Invested
Earnings
Assets
$16.55
$2,641
$7.00
224.08
14.99
2,078
7.00
extent, of the nation.
lives
on
ance
authorized to
185
164
179
146%
branches in six communities.
10.93
11.82
11.02
231.26
14.62
235.44
15.88
240.57
16.62
The decline in
included
195
number
a
about by
Later it changed back to the State Charter.
Bank of New York merged the Fifth Avenue
Bank.
One of the advantages of this merger was the acquisition
of a valuable mid-town site. There are two other branch offices
ing Act of 1864.
tional
191
197%
225
170
175%
183%
with
years
reflected
8.00
9.00
9.00
the
was over
a
decade
1954
the
stockholder's
gain
and fill vacancies in the Board
American
Statement
from
of
Condition—June
U. S.
Gov't securities———
110,015,000
and
6,296,000
profits-
$40,296,000
6,097,000
Reserve
214,146,000
discounts——
for
2,028,000
contingencies-
6,045,000
6,977,000
Dividend
accept—
Accrued int. & other resources
2,220,000
400,000
Acceptances—
houses
Customers'
liab.
for
payable———
Deposits
Reserve,
———
._
429,263,000
7,520,000
int.,
taxes,
Other liabilities
3,895,000
etc
1,082,000
;
$484,484,000
$484,484,000
A breakdown of these assets into
N.
by
principal categories follows:
26
and Trust Company
1.2
Real Estate
Miscellaneous Assets
six calendar years:
12
Assistant
was
78
15
dent of the Mid-town Branch
fice. In his
48
31
21
1953
69
30
1
34
1
65
return
on
loans
and
discounts,
States Government Bonds for the three years
has been reporting
and
has
with
been
on
United
Bank of New York
Average Rate of Return
On Loans
On Governments
The
County
Trust Company
for 14 years, was
Assistant Manager of
previously
the
Westchester
office
in
worked
has
and
Kisco,
drive-in
Avenue
Pleasantville
Mount
the
and
bank's main office in White Plains.
also announced
was
Sept.
on
granted permis¬
sion for The County Trust Com¬
second
banking
to
office
Main
open
in
pany
Peekskill, to be at 1705
a
With the opening of
Street.
the
new
the
sixth
County Trust office.
a
Loan
National
Bank
with
be
to
Westchester
served
*
Great
The National Bank of
Neck, at Great Neck,
State trust company,
a
be known
Trust
New
as
the Central Bank
Company
Great
of
Federal
Reserve
Bank
New
of
York.
*
Ralph
T.
National
White
at
*
the
Dobbs
The
Tyner, Jr., President
of Westchester,
Bank
N.
Y.
has
an¬
First
Ferry,
N.
Y.,
announced
of
Bank
Ferry
Dobbs
voted, it was
Sept. 23, to merge
on
their institutions with The County
Trust
N.
White Plains,
approval was
County Trust stock¬
Company
Y.
received from
holders at
of
similar
and
meeting
a
Sept. 21.
on
Stockholders of the Elmsford bank
will receive three shares of Coun¬
ty
Trust stock
for
each
of their
present shares, while stockholders
stock
for
shares.
each
is
It
mergers
Bank will re¬
County Trust
their
of
expected
present
that
both
will be consummated on
1.71%
nounced
2.10
the
State and Federal banking author¬
3.26
1.84
that the Comptroller of
Currency
has
granted
the
bank's application for a new of¬
fice to
be
opened in Montrose,
Oct.
3.37
N. Y.
This, the first bank in Mont¬
rose
will
be
located
on
Kings
Gerry Road.
Westchester communities. Thomas
«
banks, respectively, will remain in
charge of those offices after the
merger.
No changes in personnel
factprs to the bank's better earnings
been the greater dependence
placed on loans and in¬
Governments. For these three years the
loans has averaged 3.58%; on Governments, 1.88%.
Its
vestments, with less
power on
has
been
N.
made
National
J.
its
that
the
as
re¬
a
Advices
this
to
the
to
effect
Newark
"Evening News" of Sept. 22 from
Harrison, N. J. staff corre¬
spondent, which also said:
on
loans, per dollar, is thus nearly twice what it is
The
with
of
*
*
William J. Yates,
Ossining real¬
tor and bank executive, has been
elected
Bank of
N.
23
a
director of the National
Westchester, White Plains,
Y., it
announced
Sept.
by Ralph T. Tyner, Jr., Presi¬
dent.
tion
was
on
Mr. Yates will fill the
made
vacant
by
posi¬
the
recent
death of Harold J. Plunkett.
Mr.
Yates is President
The Bank for
a
director
and Trustee
of
Savings of Ossining,
of
the
Westchester
County Association and
of the Westchester
a
member
County Realty
Board.
A
The
new
S:
White
County
*
Plains
Trust
office
Company
of
of
White Plains, N. Y. was opened on
Sept.
23
at
98
West
Post
Road,
following
28,
by
approval
ities.
The County Trust Company
then
will
F.
have
O'Rourke
of the
and
Elmsford
offices
38
David
and
in
24
Ravekes
Dobbs Ferry
earlier item
bearing on the plans for the mer¬
ger of the First National Bank of
Elmsford with the County Trust
are
anticipated.
An
Co. appeared in our
issue of Aug.
held
170,000
shares
made
by the Federal Agency
in 1939 when the Kearny National
Bank and the West Hudson
Trust
Co.
common
ferred
consolidated.
stock, plus
of
$500,000 pre¬
taken by the
a
issue
stock
County
Sale
Mutual Benefit Life Insurance Co.
of
Newark, raised the necessary
for redemption of the pre¬
ferred.
The bank directors
to declare
a
*
#
Central
of
New
York,
Syracuse, N. Y. has opened
the
on
com¬
the basis of present earn¬
A portion of the new pre-
year on
ings.
fered
stock
will be retired
the
at
time, it is anticipated.
same
Earlier items in the matter ap¬
in
peared
481
issues
our
and
Aug.
of
Aug.
4,
25, page 786.
*
*
The Philadelphia National Bank
of
Philadelphia,
a
at
new
Pa. on Sept. 19s
anniversary with
marked its 152nd
the opening of another new office
—the
Penn
Center
Office at
3.
Penn Center Plaza. With the open¬
ing of the new office, Frederic A.
Potts, President, indicated that it
was
exactly 152 years from the
day and hour that the bank opened
first
office
in
modern
office
will
its
management
flich,
of
The new,,
the
1803.
be
under
Charles
Vice-President,
announced.
H.
Mr.
Hoe-
Potts
Mr. Hoeflich observed
that the newest office at 16th and
Market
Streets
Pennsylvania
which
means
shoppers will
the
is
block
a
Suburban
from
Station,,
that commuters and
now
have direct
cess
to
is
member of the
bank, which
ac¬
Wed¬
nesday will remain open until 9
p.m.
Mr. Hoeflich has been with
The Philadelphia National since
1936, and an officer since 1946. He
a
Relations
on
bank's Public
Committee.
*
*
directors
The
*
of
Tradesmens
Bank and Trust Company and The
Market Street National Bank both
of Philadelphia have agreed to
merger
M.
#
The Marine Midland Trust Com¬
pany
expected
are
dividend
stock around the first of next
mon
of
announced
4, page 481.
Large,
mens,
the
the two banks, it was
on
Sept. 23 by James
President
of
Trades¬
and R. Livingston Sullivan,
President
merger
of
Market
Street.
The
is subject to approval by
$170,000 bank building adjacent to
the stockholders of the two banks
their
banking office in Man-
and
Following the formal
opening of the new office, Harry
W. Davies, Chairman of the bank's
Board of Directors, and John T.
Sullivan, President, held an open
The
house for the guests of the bank.
be issued to stockholders of Mar-
lius,
*
an
000
RFC
$901,000 retirable value out
original purchase of $2,120,-
a
Na¬
have
of the Dobbs Ferry
ceive 2 % shares of
*
Plains,
of
tional Bank of Elmsford, N. Y. and
3.11%
One of the contributing
on
&
stock, held by the Re¬
Finance Corporation
*
1954
rate
as
Na¬
Bank
Hudson
reported
page
*
*
Stockholders
The conversion is announced, as
of Sept. 26 of
of
Peekskill will be
community
by more than one
bank,
1953
earning
the
*
Harrison,
15.
were
have
1952
has
of
money
It
member of the
$ie data, follows:
and Discounts
Of¬
capacity, Mr. Wal¬
new
latter, with a capital of
$500,000 was admitted to member¬
ship in the Federal Reserve Sys¬
tem at the opening of business on
September 27, it is annuonced by
Allan
Sproul, President of the
7
1952
Vice-Presi¬
the
to
Neck. The
9
79
has six of¬
now
authorities
and
11%
1950
trend
«
West
of
July
23 that State and Federal banking
to
Over 10 Years
17%
72%
Post Road office
the
County Trust
who
of New York
1946, in which bank, it is added,
had diversified experience in
the Credit Department where he
York, into
Maturities
5 to 10 Years
the
With
fices in White Plains. Mr. Di Yeso,
fice.
holdings by principal maturity categories for the past
It
in
There follows the bank's distribution of United States Govern¬
Up to 5 Years
posit.
headquarters in the Levittown Of¬
1.9
—
Manager.
as
Franklin'
44.2
:
with Cas Di Yeso
Development and
Administration Department of the
2.3
Other Securities
of
Branch
Commercial
preferred
he
Branch
rates
elected
an
lace will become
1954
of Lev-
been
announcement
by Arthur T.
Roth, President. Mr. Wallace en¬
tered the banking business as a
trainee in the Executive Training
Program of the Chemical Bank
to
Sept.
on
22.7
Loans and Discounts
The
the
Bank
conservative
is equipped for all banking serv¬
ices with the exception of safe de¬
*
has
Y.,
27.7%
._
Banking,
William J. Wallace, Jr.,
United States Gov't Securities
1949
of
#
Cash..
ment bond
known
recapitalization program
approved by the stockholders on
1939.
#
made
——
Undivid..
5,105,000
public sees.
Other securities—
Banking
be
to
Announcement
was
16
page
Institute
according
Capital—•—$16,000,000
Surplus
18,000,000
banks___$133,879,000
and
other
&
The
$1,000,000.
is
Whitehall
sult of
National Bank of Franklin Square,
30, 1955
Liabilities
Cash
and
the
of
construction
Assistant Cashier of The Franklin
Resources
Loans
of
class
ittown,
tinue far into the future."
Munic.
than
bank
«
'News About Banks and Bankers«
This procedure is regarded by the bank as affording
a "guaranty
of continuity of management that is of inestimable
value to the creators of trusts, some of which are intended to con¬
from
less
has been retired in full
occur.
due
merged
its
The trustees hold office for life,
they
effective date
Na¬
Trust
&
the
tional
investment medium.
Continued,
the
Trust Co. of Albany.
in Manhattan.
as
of
Bank
the
merged
per
a
and
Commercial
At
not
mid-1948
In
title
charter
the
with
ended
&
bank had a
capital of $3,000,000, in 150,00ft
shares of common stock, par $20
each; surplus of $7,500,000 and
undivided profits and reserves of
any payments.
the bank made good the omis¬
share, or at the annual rate of $10.90.
stock enjoys an excellent reputation as
Y.
of $3,000,000,
Sept. 9 under
on
Co.
is approximately
the
In
$109.02
stock
common
merger
price of 253, the present $10 annual dividend yields 3.95%.
price
N.
$60,000, into
Company of Albany, N. Y„
tional
' '/.
.
.
Whitehall,
stock of
the
dividend omission in the history of Bank of New
At that time, because of severely depressed
depression
of
became effective
the banks lost rather heavily
war
operates 10
*
National Commercial Bank
with
earnings after 1945 for several
Bank
common
Trust
conditions, the State of New York forbade
The
the financial disturbance of the Civil War, and Bank of
chartered bank under the new Bank¬
2,114
2,058
2,346
*
A ^merger of the Merchants Na¬
164
162%
8.00
York
New
153
15.2 times 1954 operating earnings.
6.9% on year-end book value; and
dividend pay-out is at 60%.
the
in the status of the banks was brought
New York became a national
8.00
1837.
payments. ■
original title several years later.
A nationwide change
165%
177%
190%
7.00
The 1954 earnings give a rate of
York, merged with the latter institution. The merged institution
took the title of Bank of New York & Trust Company, but changed
back to the
1,959
2,094
2,177
Central
*
Dividends
in
was
This
Trust
building. The
Company
Trust
7.00
226.65
At
Nearly one hundred years later
Company, whose organizers
of the officers and directors of Bank of New
&
the
7.00
sion; and few, if any, American enterprises have as long a record
of
of
Midland
1,854
223.63
business
grant and
Insurance
Life
York
Marine
2,025
But when the
committed to them.
description
New
to
177%
em¬
pntrance
10.94
The single
which was empowered to make insur¬
purchase annuities. It was also
receive moneys on trust and to execute trusts of any
and
213
service,
own
10.44
219.81
York
Insurance & Trust Company,
side
the
at
241%
237
the
provide
228.03
'
legislature chartered the New York Life
In 1830 the New York
for
room
than
To
215.88
real sense, may be regarded as having
of New York, and to some
In March, 1791, the bank was chartered by
became the first incorporated
more
ployees have their
government holdings, as will be noted in Invested Assets.
in
legislature; and it
institution of its kind in the state.
York
New
Low
larger
office.
of
laid the foundation for the banking law
the
High
times
banking
even
Price Range
Dividend
$218.10
the fact that after the end of the
York State.
very
a
Operating
five
old
♦Adjusted to present capitalization.
played the most active role, writing the bank's
constitution, which later became a model for bank charters issued
Alexander Hamilton
by the legislature of New
Book
building, it is stated, is
new
over
Ten-Year Statistical Record-Per Share*
Value
Thursday, September 29,1955
.
The
excellent showing for a large metropolitan
more liquid tnan country banks.
an
..
old
N.
Y.
the
regulatory
authorities.
capital stock of the combined
will be 589,455 shares. The
bank
stockholders
retain
the
their
of
Tradesmens
present
shares,
balance of 125,000 shares
will
and
will
yolume 182
Number 5468
.
.
ket
*
■
Street-in
shares
of
share
of
the
ratio
Tradesmens
of
IV4
for
each
Street.
Market
The
by the Board of Directors, it was
announced on Sept. 19 by Arthur
is planned to become ef¬
fective at the end of the year. The
name of the combined bank will
be
meyer
merger
Bank
and
Trust
Blumeyer,
Schroder Banks Elect
The addi¬
tional capital will be transferred
from undivided profits which was
$1,822,006 as of Aug. 31. Mr. Blu¬
"Tradesmens
President.
stated
Company." Six directors of Mar¬
increasing
ket
directors
mercial
A.
nance
of
Street
will
become
Tradesmens.
Howard
Loeb,
that
activity
pointed
the
mens, in expressing his approval
of the plan stated that he had
long
ment
been working for such a merger.
Mr. Loeb has decided to retire as
that
com¬
fi¬
need
The
for
announce¬
little
a
over
a
the directors increased
the capital from $2,000,000 to $4,000,000 by similar action. When
year
ago,
Chairman after 49 years of service
but will continue as a director
the institution
and
plus of $20,000. With the comple¬
tion of the present program the
of
the
Executive
Committee of the bank. The senior
officers of the combined bank will
be R. Livingston Sullivan, Chair¬
man
of the Board of Directors;
Percy C. Madeira, Jr., Chairman
of
the
Executive
Committee;
James M. Large, President; and
Warren H. Woodring, Executive
Vice-President. It is anticipated
that all officers and employees of
the
institutions
two
be
will
The
Broad
and
addition
Chestnut
to the
nut
com¬
Street
In
Streets.
Broad
Street and
ket
bank
capital will be $5,000,000, surplus
$2,000,000. The bank is the major
subsidiary of the General Contract
Corporation. Included in the cor-°
poration are eight banks: Securi¬
ties Investment Company,
a
fi¬
nance
Chest¬
and
Juniper and Mar¬
the combined
offices,
will
six
have
Philadelphia.
offices
other
basis
the
On
of
and three insur¬
The corporation
company;
companies.
ance
operates in 23 cities in nine states.
*
At
principal office of the
bined bank will be at the present
main
office
of
Tradesmens
at
in
it had capital of $200,000 and sur¬
re¬
tained.
formed in 1913,
was
the
*
*
South San Francisco
at
was
merged into the Anglo California
Bank
National
and
cisco
of
its
became
Office,
it
San
Fran¬
announced
was
jointly by Paul E. Hoover, Pres¬
ident of Anglo, and E. P. Kauff-
of
President
man,
the
Bank
Francisco.
The
is
$253,546,000; and its, capital funds
system.
$31,600,000,
Sept. 19 the shareholders of both
banks approved the merger plans.
contingent
The
rency
Comptroller of the Cur¬
has given preliminary ap¬
of the
Manufacturers
Na¬
tional Bank of Detroit, Mich,
the
Detroit
the
National
Industrial
for
two
consolidation
the
of
of
institutions, it was an¬
Sept. 21. The consoli¬
nounced
dation
and
Bank
on
is
subject to
approval
by
the stockholders of both banks and
final approval by the Comptroller
of the Currency. The merger plan
The
solidated
would
banks
two
the
under
Manufacturers
special
At
the
Anglo
meetings
of
the
on
the
Anglo
Bank will acquire all the
be
the
of
name
National
con¬
Bank
of
all the liabili¬
Francisco
San
South
of
South
celebrated
Francisco
Golden
Bank
The
stock.
San
merger,
exchange for Anglo capi¬
bank in
tal
assume
the
of
ties
terms
and
assets
this
Anniversary
its
year,
,
having been incorporated in mid-
Francisco
San
N.
of
the
institution,
Lilienthal,
of
and
founders
the
President
first
the
of
One
1905.
South
Market Remains
recently established
what
also
was
Manager
Anglo Californian Bank,
predecessor of the present
Anglo
As
from
Bank,
June
1891
1908.
to
it is an¬
nounced, deposits of the Bank of
of
1955,
30,
Francisco
Detroit. Shareholders of Industrial
South
National Bank would
tant past.
have
To be
the
share
Manufacturers
of
National
stock for each share held. The
capital
which
new
would be 1,075,000
value of $10 of
stock
shares with
one
a
par
shares
275,000
would
be
ital
its
totaled
stood
assets
at
mately $11,800,000. Officers of the
new Anglo office'will be Etienne
N. Fourcans, Vice-President and
National
Manager, who was Vice-President
share-for-
and Cashier of the former Bank of
share basis and 800.000 retained by
Manufacturers National sharehold¬
with the ability to rally some¬
sure,
the shorter-term Treasury obligations still
and
market
the
for
these
is
securities
money continues to be tight. Tlie longer-term
obligations have been getting more attention from
though
even
Industrial
to
shareholders
ers.
the
on
Both banks currently are pay¬
ing dividends at the rate of $1.60
per year and it is anticipated that
this
will
rate
continued.
be
It is also proposed that: The di¬
of
the
enlarged bank
rectorate
would
be
increased
include
to
present directors of Manufacturers
National
directors
and
lected by and from
National
A.
Kan-
ter, Chairman
and William A.
Mayberry, President of Manufac¬
turers National, would continue in
those capacities.
Glenn F. Turn-
bull, Chairman of Industrial Na¬
tional, would retire as an officer
but
the
would
of
ident and
idated
17
a
a
director of
A. Guy Ropp,
National,
Industrial
would become
The
as
serve
enlarged bank.
President
Senior Vice-Pres¬
a
board
continued,
and
bank would have
act
Mr.
Kauffmann
the
of
in
Bank
1927
a
Fran-
a
the
of
the
1933.
these obligations is
Tax
still thin and limited.
Swaps/Favor 3s of 1995
continue to be very much in
Government-market with indications that some
fairly sizable swaps are being made from time to time. Maturity
rearranging is important in some of these exchanges, but in most
cases there
has been only minor changes in maturity schedules
as a result of the tax switches which are being made.
The 3s due
1995 is still the leading issue in the reported tax switches and it
is quite apparent that this bond continues to move out of the mar¬
ket into what is termed "strong hands."
There are also reports
that the non-marketable 2%% bond is being converted into the
five-year note, and this obligation in turn is being sold for tax
purposes, with the proceeds being invested in the 3s of 1995. This
kind of operation has not been sizable so far, but there have been
It is reported that tax operations
the spotlight in the
sized deals being worked out in this
reports of some fairly goofl
fashion.
There
been
indications that certain institutional investors have
are
exchanges from some of the shorter Government
new issues of corporate
bonds which have been
making
issues
the
into
coming
the market.
into
The yields
issues reached levels where it is
on
some
recent corporate
beneficial for institutional inves¬
tors to take funds out of certain Government obligations and
this money
put
and
the
enlarged
As of June 30, 1955, the
capital accounts of the
aggregated $38,241,053,
combined deposits totalled $730,-
073,455 and total assets were $779,-
of
to work in
the longer-term
mortgages.
of
$5,000,000
Easing of Credit Restraint Expected
St.
Louis
from
at
its
St.
cap¬
$4,000,000
following approval of the action
of
the
same
was
made
time,
announce¬
of the promotion
William
Bethune
J.
to
As¬
be
sistant Vice-President of both in¬
Cuban Bonds Offered
Allen
&
is
Co.
today
offering
(Sept. 29) $3,000,000 Republic of
Cuba, veterans, courts and public
works
bonds, 4%, due 1983 (pay¬
at 98% and
able in U. S. dollars
accrued interest.
The
bonds
are
presently
out¬
standing and offered on behalf of
Romenpower
Electra
Construc¬
tion Co. which received the bonds
from the
or more
Republic of Cuba
or one
of its agencies in payment
construction work, chiefly on
for
streets in or near
and
highways
Havana.
The
bonds
are
general obliga¬
of Cuba and,
secured by the
tions of the Republic
in
addition,
are
certain funds,
of
pledge
imposts
and revenues.
Staff
raising operation of the Treasury which should
be announced very shortly, the financial district is not looking for
any important change in the monetary policy of the powers that
be. It is being pointed out that with the demand for funds as
sizable as ever, the slowing down process of the monetary authori¬
ties will continue to be pursued as vigorously as it has been. This,
in the opinion of certain money market specialists, could eventu¬
ally bring about a higher rediscount rate as well as other measures
that could have further limiting effects upon the credit structure.
for the new money
H.
Ky.—Roscoe
LOUISVILLE,
with
Goodbody & Co., Heyburn Build¬
Sawyer has become affiliated
ing.
With Morton,
Whitten
is
Hall
Chronicle)
Me.—Louville W.
affiliated with
LEWISTON,
though the money market is expected to be eased slightly
Even
now
Morton, Hall & Rounds, Inc.,
Main
226
Street.
U. S. TREASURY
STATE, MUNICIPAL
Universal Sees. Formed
SALT LAKE CITY,
R.
Utah—Lynn
Fairbanks, Jr., is engaging in a
firm
West
Ninth
Street under
the
With Ashton Co.
and
(Special to The Financial Chronicie)
DETROIT, Mich.—JohnS. Dunsford has been added to the staff of
Ashton
&
Co.,
West
15315
PUBLIC REVENUE
Mc-
Nichols Road.
SECURITIES
of Universal Securities
name
Mr.
previously
887.
with
&
Joins R. A.
(
R.
Hammond
with
R.
has
A.
become
con¬
Wildenberg &
previously with
Taylor
and
ISLAND,
land D. Campbell is
N. Y. — Ro¬
engaging in a
securities business from offices on
Love Road.
Bear, Stearns & Co., 1 Wall St.,
New
York
City, members New
York Stock Exchange, announce
that Martin Berkowitz is now as¬
sociated with the firm
tered
as
a
regis¬
representative.
J. A. Weber
Op^ns
WASHINGTON, D. C.—Joseph
A. Weber is engaging in a securi¬
ties business from offices at 1022
Eighteenth Street, N. W.
With Maltz,
With California
Investors
ANGELES, Calif.—George
A. Levine and Shirley J. Lynn are
with
Campbell Opens
GRAND
Company.
now
R. D.
Doxey-Merkley
With Bear, Stearns
Co., 450 North Camden Drive. He
was
was
Co.
Special to The Financial Chronicle)
nected
Fairbanks
Wildenberg
BEVERLY HILLS, Calif.—Robt.
LOS
Bank
position
(Special to The Financial
No
Brokerage.
(Special to The Financial Chronicle)
Louis, Mo., will increase
since
(Special to The Financial Chronicle)
issues, with the funds still being put
Commercial banks with sizable amounts of
savings deposits have been on the buying side, in not too large
volume yet, of certain issues of the most distant 2V2S.
Private
pension funds, according to advices have been making limited
commitments in some of the intermediate term Government issues.
some
Morris
mer
Glass
are
now
Greenwald
Milton
Wol-
associated
with
and
if
if
Howell
Mr.
July 14, page 185 and Sept. 1, page
594,612.
if
been
banks
previously held the
Assistant Vice-Presi¬
Joins Goodbody
Pension Fund Activities
Savings banks, according to advices, have been modest sellers
in
proposed
appeared in these columns
has
two
to work in the non-Treasury securities.
Bank
117
merger
Both
the
stitutions.
joined
in
and
1939
1948.
of
He became
bank
regarding
since
At
securities business from offices at
Items
with
the market for
South San Francisco
director.
Vice-Presi¬
Bartlett
Mr.
connected
ment
advisory
an
network of 33
two banks
to
as
President
the 16 of¬
banking offices. The effective date
for consolidation would be Dec.
ital
in
and
capacity.
directors.
of
facturers National and
The
San
President
banking offices of Manu¬
combined
who is Treasurer
South
of
member of the consol¬
bank's
30, 1955.
City
cisco, will hold the title of Vice-
fices of Industrial National would
be
the
for¬
Comptroller.
and
Auditor
Mr. Kauffmann,
of
Manager,
Assistant
Fourie,
merly
P.
nounced.
helped to improve volume in these securities, even though
the amount of trading which iy being done is not large, because
of the for¬
Balestracei,
Assistant Manager, formerly As¬
sistant
Cashier; and
Alfred
P.
Peter
bank;
mer
se¬
the Industrial
Charles
board.
be
to
Cashier
Assistant
was
as
Schroder Bank¬
ing
Corporation
and
Schroder
Trust
Company
has
been
an¬
Switching between the various maturities of Treasury issues
has also
Manager, who
Assistant
nalanza,
Bartlett
dent.
South San Francisco; John J. Bo-
issued
Edmund
dents of J. Henry
investors, and this buying has been responsible in no
improved tone wj>ich has been in evidence in
ap¬
approxi¬
areas,
Howell
I.
and John I. Howell
small way for the
these securities.
$11,000,000, its cap¬
exceeded $700,000 and
funds
total
price
demand
better
proximately
receive
San
Quiet
in evidence than had been the case in the not too dis¬
more
John
The election of Edmund Bartlett
The Government market continues to back and fill within the
Philip
The
Ltd.,
provides:
even
out
money
new
Under
if
proval to plans submitted by Di¬
rectors
in
44th
the
since the interest raising
though there is a tendency now to move some
of these issues into selected corporate bonds. The
impending Government financing is expected to take some of this
demand away from the near-term Treasury obligations.
volume,
of
office
if
was
ket is still tight and
Franciso
San
South
case
adopted by the monetary authorities.
The money mar¬
while some temporary aid may be given to it
in order to facilitate the new money financing of the Treasury,
it is not expected that the pressure will be eased until more of
the objectives of the program have been achieved.
Funds continue to be put into short-term Governments in
policy
institutional
San
including
deal different from what has been the
Government
South
if
market appears to be getting a bit more
attention, especially in the most distant maturities, even though
it is not expected that prices of these securities will act a great
Sept.
cisco
Two Vice-Presidents
Governments
on
Government
23, the Bank of South San Fran¬
June 30 statements, its assets will
total
$288,645,000;
its
deposits
reserves.
Reporter
By JOHN T. CHIPPENDALE, JR.
The
broad
business
of
close
Our
bank's
in
consumer
to
additional capital.
noted
the
both
and
loans
Chairman of the Board of Trades¬
member
45
(1317)
The Commercial and Financial Chronicle
.
0
California
Investors,
3924 Wilshire Boulevard.
Maltz,
Greenwald
&
Co.,
1441
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
change,
tives.
as
registered representa¬
Aubrey G. Lanston
8c Co.
INCORPORATED
With Continental Sees.
(Special to The Financial
GRAND
RAPIDS, Mich.—Louis
R. Scholl is now with
Securities
Chronicle)
Continental
Co., Inc., People's Na¬
tional Bank
Building.
15 BROAD
ST., NEW YORK 5
Whitehall 3-1200
231 So. La Salle St.
45 Milk St.
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
46
The Commercial and Financial Chronicle
(1318)
Continued from page
This indicates a continuing
high level of .industrial purchasing
power and strength.
power.
p
changes
in
the
living
standards possible of attainment
ample, fell in the $1,000 to $1,500
income group.
Now the "middle
in 1956, and over
Consumer Debt Is Low
the next decade.
A Higher Standard of Living Pos¬
sible Because of Shift Upwards
In
Family Incomes
In 1956 there may be 6Vz
as
times
spending units
$3,000 as there
many consumer
with incomes
over
in prewar 1941.
The number of U.
S.
families
(consumer spending units) is ex¬
pected to total 56 million in 1956
42%-more
or
than
in
1941.
37,500,000 with incomes
will
000
million
only
total
$3,000 rep¬
of the 39.3
over
141/2%
families.
The
num¬
ber of families with incomes
$5,000 in 1956,
over
be expected to
total 19.6 million of 12^ times the
can
1,564,000 in this income group in
Mass
Millions
Are Climbing the
Ladder—Opportunity for
Income
Changes in Habits and Wants
The
movement
come
upward
has
groups
been
in
in¬
rapid
in
millions have
climbed
income groups and
spending
In
four
upward in
in discretion¬
power.
years
between
—
(consumer
spending
units)
with
$4,000 after taxes
(disposable income) jumped from
over
12.2 million to 21.4 million.
It is estimated
number
1956 the
incomes
$4,000,
over
reach
that in
families with
of
25.8
after
million
taxes,
At
late
as
will
than
more
or
double the number in
even
that group
1950.
as
the production level of
billion
possible
five
$430
from
years
now, in 1960, the number of fam¬
ilies with over $4,000 of dispos¬
able
income
million
could
climb
to
36
triple the 1950 number.
or
This
means
possible
a
nearly 24 million
families to join the 12 million
above
$4,000.
Their
movement
upward in purchasing power does
they will automatically
the same desires, beliefs,
and standard of living of the in¬
mean
take
five
over
on
into which they have
the change in pur¬
chasing power since 1950 repre¬
come
groups
moved.
Yet
spending power
times
great
as
the
as
spending
entire population,
Total discretionary
power
for
which
reached
our
level
a
$145.0
of
with
$88
and
1960
billion
$248
in
billion
compared
as
1950.
That's
after taxes.
1
capita standard
the basic necessities
of
food,
clothing,
and
shelter
equivalent to
the
1940 actual
standard
of
living after taking
into account present prices. This
could reach $195 billion in 1960
or
one-third
greater than 1955
to
supply
move
from
up
income class to the next, they
could represent substantially in¬
one
creased
markets
for
goods,
to take
were
sires
of
on
the habit and de¬
income
the
into
true
group
which
But there
take
are
on
automaticaly.
liketime
ous
cases,
was
reasons
these
built around
in
a
most
differ¬
now
available
spending
as
discretion¬
power.
That
represents
huge pool of
a
purchasing power dependent upon
the whim
discretion of the in¬
or
dividuals
as
used.
infinite
the
it
how
to
is
to
be
People have the money now
select
to
between
choose
and
an
items beyond
necessities. Many will
of
variety
bare
products or services or
v/ill increase savings and invest¬
add
new
others will increase their
expenditures
for
better
ments,
basic
clothing,
In
or
housing.
discretionary
1955
spending
represented 58% of total
disposable income,
after taxes,
power
whereas
it
1940
in
one^third
only
represented
much
the
of
smaller total.
Real
in
Power
Purchasing
the
cretionary Spending Power Broad¬
Market for
Products
and
Investments
92% Over Prewar
everage
weekly earnings for
duction
workers
in
"middle
An
added
of
source
in
pro¬
It
is estimated,
short-term
consumer
low in rela¬
is
credit
to
tion
discretionary spending
The" present level of con¬
power.
credit
sumer
about
at
is
some—it
worries
times the $8 billion
the basis of
on
discretionary
consumer
pected
in 1956, is ex¬
be six times the 1940
power,
to
level.
The ratio of
credit to
consumer
has
1940 to
power
dropped
from 31%
in
22%. This means that con¬
sumer
credit
instalment sales,
about
—
accounts,
and
personal
loans—could expand by 60% over
charge
high 1955 level without being
overextended in relation to discre¬
total
the
with
pared
left
is
that
power
over
the
income
as
has
of
amount
been
frequently
national
a
local
used
yardstick
of
the
that
credit
consumer
the economy can carry safely.
1929 to 1939 con¬
outstanding ranged
credit
to
10%
1940
it
between 7%
In
11%, then
was
low
as
of disposable
as
3 ¥2% during
the
war peak of 1943-44.
The 1940
relationship of 11% has somehow
millions
the scale in real
of
in¬
middle
have
Americans
moved
purchasing
up
power
point where they can make
substantial improvements in their
living
standards
and investments.
the
increase
purchasing
come
example,
for
since
Highest Fifth
Second
Fifth
up
Fifth
up
Fourth
Fifth
up
Fifth
up
by
real
in¬
69%
up
Middle
Lowest
in
1940
varied
follows:
power
groups as
90%
117%
143%
an
over
four
has
over
All-Time High
the
1940
purchasing
double
power
the
total
after price
correction.
The
$160.9
liquid
assets
income,
1955
billion increase in
of consumers from
reflects
improvement
in
stability of the
mass
22%.
$8.3
disposable
lion in
ing
should
power
billion
which
credit
out
could
times
as
serve
a
credit
income
by
60%
Consumer
a
the
■
and
standing
appliances.
Annual
The
because
examine
of
product
a
be
with
a
Annual
Million
Market analysis of
the
In Our Economy
the
new
cars
credit
changed
in
it
because
character
con¬
as
has
result
a
increased productivity and
our
change in
rapid
the income
of families.
tribution
have moved up
from
dis¬
families
As
income
one
to the next there has been
group
a
for
disproportionate change in their
"discretionary"
income
ability
or
—
1940
level
of
production.
total
to
debt
the outstanding net
public and private debt
in the United States represented
more
than double a full year's
In
total
and real need for automo¬
biles indicates a potential market
six million
rapid decline in the ratio
total
and
power
over
'
point with alarm to our
mounting debt total but few s£em
to
recognize the significance, of
changed conditions of purchasing
for
expanded
changed.
Many
Car
new
6.2
this
on
to Production Is Factor of Strength
"saturated"
automobile.
New
potential
in
Rapid Decline of Debt in Relation
Potential Can Be Developed
,
1.1
present habits and desires in re¬
lation to car ownership need to
this prize
market—the passenger
Six
0.6
new
potential will require aggressive
advertising and selling—because
rel¬
a
cash
To
against their cars.
example
debt
Let's
from
families
market potentials
"saturated"
as
new
family formations-.-—
two-car
market for these often is referred
to
3.5
1.0
from
Additional
for consumer durables such as au¬
tomobiles
car,
non-
owners
Additional
Consumer credit is closely asso¬
an¬
TABLE
II
1930,
of
i
May,
Disposable Personal Income
Basic
(Billion)-,—"
Increase
1940
1955
1)40-1955
$76.1
49.2
$261.0
116.0
66.8
26.9
———
Living Cost To Equal 1940 Per Capita
145.0
118.1
Surplus or "Discretionary Spending Power"——
Excess Discretionary Spend'g Power Over
'Six
times
Consumer Credit
$184.9
23.3
31.6
8.3
Consumer Credit Outstanding—
to"
at
disposable income is
yardstick
II
cars.
*
Additional from
spending power.
'$94.8
$113.4 or
$18.6
much.
as
Relation
m
in their
Spending
of Consumer Credit to Discretionary
Power
1940-1955
Opportunity for 1960-1965
—
(Billions of $)
Basic
Total
Disposable
Personal
ary
Total
D. S. P.
Spending
Consumer
Over
Net
Power
Capita
Credit
Cons. Credit
Saving
$18.6
$4.2
Standard
Taxes
of
Discretion¬
Equal 1940
Per
After
Excess
|
Living Cost
to
Income
Year—
proper
IV2.
Million
exceeding the prewar rela¬
of 31% of discretionary
with the
second
a
Replacement
to
tionship
pro¬
proper
two-car
of these
annual potential
six million
over
$50 billion outstanding with¬
ciated
need
total
a
as a
can
prime
shows that
consumer
means
expand
of
$163
to
grow
have
we
1956, discretionary spend¬
measuring rod, but no¬
body goes on to determine whether
the prewar relationship was valid
of
this
two-thirds
who
million
disposable income up to $280 bil¬
least has the value of using some¬
thing
can;
to
1940
$76.1
$49.2
$26.9
$8.3
1941
93.0
52.1
40.9
9.2
1942
117.5
58.5
59.0
6.0
1943—
133.5
62.8
70.7
1944
146.8
64.5
82.3
1945
150.4
66.7
1946.
159.2
1947
31.7
11.1
53.0
27.8
4.9
65.8
33.0
5.1
77.2
36.9
83.7
5.7
78.0
28.7
73.1
86.1
8.4
77.7
12.6
169.0
85.5
83.5
11.6
71.9
4.0
1948
187.6
93.0
94.6
14.4
80.2
10.0
1949
188.1
94.0
94.1
17.1
77.0
7.6
1950
206.1
96.4
109.7
20.8
88.9
12.1
•
'
-
save
to
things
1
Excess of
Discretionary
Power Over Consumer
Spending
Credit
226.1
107.0
119.1
21.5
97.6
17.7
236.7
111.0
125.7
25.8
99.9
18.4
1953
buy
1952
250.4
113.0
137.4
29.5
107.9
19.8
1954
254.8
115.0
139.8
30.1
109.7
18.3
1955-lstQ.
261.0
116.0
145.0
*31.6
113.4
15.3
1956
to
beyond the bare necessities.
280.0
117.0
163.0
H50.5-
112.5
20.0
1960
320.0
125.0
195.0
f60.0
135.0
20.0
1965
375.0
135.0
240.0
1J75.0
165.0
25.0
1951—
_
•
Outstanding Has Grown Six¬
our popu¬
in liquid assets since 1940 to reach
four
consumer
she
Yet
-
TABLE
financial
of
were
$25.20.
The
income" family, for ex¬
total
dropped from 31%
the
immo¬
home
billion of con¬
million who urgently need a sec¬
sumer credit. But, as of May, 1955,
ond car are in the upper half of
the excess was $113.4 billion, or
incomes—that is, over $4,000 per
six
times
as
large as in 1940.
year—where the discretionary in¬
(Table II.)
come
and ability to purchase is
This changed relationship should
high.
be taken into account. The ability
Assuming a minimum of 3.5
to
handle
consumer
credit
in¬
million annual replacement need,
creases faster than the disposable
plus 1.0 million or 5% of present
income.
It seems logical, there¬
non
owners
becoming
owners,
fore, that consumer credit out¬
plus 600,000 car owners added
standing should reach levels con¬
through
new
family formation,
siderably higher than the prewar
and assuming the opportunity to
relationship to disposable income.
convert at least
10%
of the 11
With an
expected increase in
retire
to
-
Relating
substantial
the
lation.
a
had
credit
$49.4 billion in 1940 to $210.3 bil¬
in
relation to discretionary
the ratio
of consumer
in
sumer
level of about $49 billion. And this
total
But,
not
159%
times
the
$261.0
billion rate of disposable income
had broken the mythical ceiling.
-
liquid assets of consumers
1955,
at
over
$210
billion,
totaled
of
regu¬
usually has daily
to
portion now.
The
in
12%
of
husband .takes
market
or
May,
proximately
and
Liquid Assets of Consumers and of
Business Are at
In
consumer
Percentagewise,
credit
consumer
1955, the $31.6
billion of consumer credit, or ap¬
expand.
savings
in
and
million
that in at
car.
of
"
This increase in real
mass
allow
to
a
quali¬
home.
workers,
at
the
and
car
potential
In
the period from
a
Study
$20
and
Federal
after
taxes)
about
add
could
is driven to
other
at
work.
to
for
need
of $18.6
left
is
when
car
drive
what would be needed
over
left
is
employed
bilized
the
1940, for example, the $26.9
billion of discretionary spending
billion
no
housewife
atively higher percentage of fami¬
lies are owners. Also, they are
billion
to
current
purchasing often used as
examples of over¬
power.
extended credit—although 69% of
Disposable
income
(personal today's car owners have no out¬
ratio
1940
ous
come
larly
In
an excess
car
driver
families
additional
single
This means, however,
least 11 million homes
tionary income. Just to reach the
92%
greater than in 1940.
fied
is
family who
There are
drivers.
where
but
work
credit.
provided
every
where the
entirely the outstanding consumer
power
single
is driven to work reg¬
working day and
car
million
six
required to pay off
that would be
real
mil¬
the
where
qualified
are
after subtracting the amount
even
come.
a
11
in
car
other members of the
shown in the amount of free pur¬
chasing
years to
example,
unavailable to the housewife or
is
consumer
growth
spectacular
a
a
parked away from home where it
a
—
(Table
growth since 1940.
credit
over
the
discretionary family
over the total of ularly
credit outstanding
consumer
the
by
for
second
families
of
gained acceptance as the "ceiling"
beyond which it would be danger¬
Business has added $58.1 billion
$32 billion
four
about
level of 1940.
trends, that in 1956 the
real
purchasing
power
of
the
United States population will be
manufactur¬
1940,
purchasing
the fact that
is
power
dropped to
present
lion
Prewar, our economy was typi¬
fied by the $25 a week family —
ing,
Expand by 60% in 1956
income.
United States Has Increased
Safely
Could
Credit
Consumer
sumer
real
Over A Fivefold Increase in Dis¬
ens
were
discretionary spending
There
major job for advertising and
selling to change these concepts
in line with the changes in in¬
come
1954,
spending
Their whole previ¬
training,
of
half
non-farm homes,
entirely free of
But
habits
a
ary
approximately
so,
on the basis of the $500 bil¬
production goal in 1965, the
discretionary spending power
could reach $240 billion or an in¬
crease of 65%
over the 1955 peak
why they
new
ent concept of how to live.
is
Even
owner-occupied
and,
they move. This is
even though taxes and the cost of
living have increased.
don't
renting to home ownership.
from
lion
serv¬
ices, and investments if only they
pay¬
fact, much of this is a
substitute for rent payment since
there has been a rapid movement
In
ments.
per
a
to the
As these families
rent
to
similar
is
of
period
the monthly
where
and
in
that
1954
for
on
temporary
mortgage debt.
billion
in
burden
times as great as
the $26.9 billion in 1940. That is
the surplus spending power over
and above what would be required
nearly 5 Vz
those with disposable
income over $4,000 is vast—$163
by
estimated
to become a
the economy
likely
not
burden
shown
is
spending power is charted year by
year from 1929 to 1954 and com¬
largely in a form of the amor¬
tized mortgage where the prin¬
any
excess
savings
Further, 71% of the increase in
debt, since 1940, is in
home
mortgages which now is
during
This
III.)
When the total of discretionary
consumer
cipal-is
income.
many
is,
for
lion
discretionary
growth in
for
There
need
sixfold
credit, is
accumulated
billion in the first quarter of 1955
was
purchasing
power has even
greater signifi¬
cance when it is analyzed by
in¬
come
groups because it indicates
sented
to
recession
middle income family.
prewar
relation
nually
con¬
including
than in prewar years.
clothing, and shelter
income family now
discretionary
has
consumer
as
critical
move¬
ment upward of
not
middle
the
1950
1954—the number of families
incomes of
of
sities of food,
the
than
handle
to
well
lower in
level.
the last five years.
During this
period, when prices have been
relatively stable, literally mass
and
of
at
consumers
billion,
$122.4
an
equivalent 1940
living in the neces¬
maintaining
of living for
1941.
ary
level.
1940
taking into account both in¬
creased taxes and present costs of
of the 56
whereas, in 1941, the
million with
resented
$3,-
over
represent 67%
million total
5.7
The
,
After
standard
were
the
times
three
ability
Thursday, September 29,1955
:
.
credit increases faster even
sumer
spending power
home and farm mortgages as
family is in the $4,000 to
$5,000
income
group.
Weekly
earnings
in
manufacturing,
by
June, 1955, had grown to $76.11 or
over
of
debt
Total
about
income"
further
the
that
growing
Spending Needed to Keep
With Growing Prodnctivity!
re
purchasing
real
the
double
with
15
.
fold Since 1940
Coming back to the importance
of discretionary spending power
as
a
Opportunity:
yardstick for consumer credit,
there
is
an
impressive indication
♦May,
1965.
"[[Potential.
J
I
I
Volume 182
Number 5468
.
This
,
Commercial and Financial Chronicle
(1319)
47
1
\
«•
national
210%
production
of
the
actually
—
total
years
eh~r1 three °Jia*
over
times
thm 1
tnough
Mutual
Funds Have
produc/-
fj
th r
greater
ing
An
Expand-
Opportunity
Tbese economic trends to
creased
Droductivitv
Continued from page 2
The Security
I Like Best
in
dollars^ had dropped to 160% standards of living point to extion3 measured in dollars had Panded opportunity for mutual
vfC^J
tion
funds
grown more than
Even
the
drop
fourfold.
in
the
relation
of
total
private
debt to production.
Net
private debt of individuals, busiand corporations represented
176% of a year's production in
ness
1930.
By
1955 the relationship
nearly in half—to
year's production.
had
dropped
91%
of
a
This is
factor of unrecognized
a
strength
in
emphasizes
economy—but
it
importance
our
of
the
holding our production level high
through increasing our standard
of living rapi&ly enough to conand
sume
enjoy what
we
are
ca-
'
pable of producing
Are
Strong
Finan-
daily—Corporate Debt has Declined in
Relation to National
Production
Net
-
n
are
upwards into income
groups where discretionary spend™OVIn&
}"g P°wer a greater and where
L,~0a^
° Save a
invest 1S
exPand?d• The
number of families with
of the
Even
products gain broader acceptance.
The development of these prod¬
ucts
was
begun
1937 when the
research
Norwich
by
to
in
started
company
program
special advantages of in¬
vesting in mutual funds,
a
investigate
the "furan ring," an almost unex¬
are
protected
by
large number
a
of patents.
In
fact, ownership of corporate
stock has a woefully low penetration or acceptance among Ameri-
The
debt
1954
represented 56%
production
43%.
was
■'22%. of
The
1955,
in
a
of
debt
as
it
was
relationship
long-term
with
representing only
year's production.
of
taxes
cornorate
to
nrnfits
comorate
lons
with
be
may
de¬
wide
a
of
range
npt
■Jf
AVZ illi
fitV 1^1 oin
^7P7m-Cre,aQ!?195o.
from 63% m 1940 f
to 117%
'
a
®
h8S ? percfnJ
Irl
lnno
a
in
creased Consumer
Purchasing
basis
eliminate
to
the
influ-
of inflation, corporate
profits, before taxes, have
in'creased 140% between 1940 and
;ence
the
middle
of
After
1955.
in
increase
net
with
an
taxes,
in
78%
stocks.
was 72%. This
increase of 85%
purchasing
consumer
and
vestment
the average
power
price of
(Table IV).
Production facilities to keep up
wlth 1he increased productivity of
an e*!f ?d'ng 1e/0n0r?y<cTnannK^n"
omythat should reach $500 billion
°QJ°35 bllllon of Production by
iybaThis
mean
all
production,
and
a
by
50% increase in
a
American
1965,
our
standard
can
over-
of
living
vast increase in the number
potential owners
American business.
of
shares
of
in
firmed
been
Long-Term
Debt
widely
and
bacterial
volume
additives
for
the
of
in
with
1953
the
introduction
of
Furadantin, the first systemic nitrofuran, for kidney and urinary
tract infections in humans.
has
has
attained
been
the
under
Fura¬
unusually
new
deliveries.
car
makers
will
This year's loss may go to
60,000.
operating at top speed in 1956.
be
Freight
:
car
Indications in the automotive
industry of a tremendous fourthquarter surge were strong last week as Ford Motor Co. and
Chrysler Corp. sharply increased schedules giving new 1956 model
output a large slice or 44% of the industry's total car building,
"Ward's Automotive Reports" said on Friday last.
Program boosts of 23.1% and 32.1%, respectively, by the two
offset a 12.6% decline by General Motors Corp. as
producers
Pontiac joined Cadillac in changeover operations.
Elsewhere, "Ward's" stated, American Motors was in its final
of 1955 model building and Packard
geared to launch 1956
output this week.
"
Three
General
Motors
divisions—Chevrolet, Oldsmobile and
Buick—have yet to enter new car transitions.
However, "Ward's"
predicts, these corporation car lines will repeat Ford's quickchangeover performance when they switch in October, avoiding
further major slumps in United States car output.
The statistical publication pegged this week's United States
production at 124,001, a 1.4% gain over the previous week's
yield of 122,263.
car
A strong
17.5% gain
was
slated by United States truck pro¬
shooting for 25,090 units compared with 21,348 a week
earlier, as International Harvester and Willys Motors rebounded
sharply following strike-caused idleness.
ducers,
Meanwhile,
Detroit-area
with
dealers
157,317
sold
units
in
January through August, this month topped the 160,756 new cars
sold in entire 1954 and headed toward a record 200,000-plus sales
for all of
in
The present peak is
1955.
195,614
new
car
,
sales posted
1950, "Ward's" reported.
the
Across
border, Canadian car-truck building, spurred by
50% over output
a
week earlier despite the walkout of 17,000 General Motors'
employees which halted operations by tne corporation's five
Canadian plants early last week.
hiked rosters at Ford and Chrysler, was up some
August building permit values in 217 United States cities
$555,829,122, representing the highest August volume on
record, and compared with $459,157,830 in the like month a year
totaled
ago, for a
gain of 21.1%. It exceeded the July figure of $511,841,797
by 8.6%, according to Dun & Bradstreet, Inc.
New York City building plans for the month amounted to
$41,436,766, up 34.4% above the $30,841,192 for August 1954, but a
drop of 19.4% from the previous month, with $51,383,412.
The best advances
Central
recorded in the East
Pacific region, up 27.8%,
25.9%.
over
a
rose
region, which
41.3%, the
and the Middle Atlantic
year ago
region,
up
were
i
.
of
name
Trico-
$9.6
Bef. Taxes
$8.3
After Taxes
To
18%
20%
—1
date
than
only four of the
nitrofuran
300
developed
are
used
a
humans.
in
base
a
for
Qtr.)
0.2
—0.4
6.5
21
15
specialties
19.0
8.3
50
22
Laboratories.
60.1
40.0
22.1
67
37
34.0
17.0
41
20
Now, with much of
the basic research
completed, a
larger harvest of the fruits of re¬
85.7
42.5
21.2
50
25
search
the
25
professional
in
the form
ing number of
a
Much Stronger Financial Position Than Prewar
(1955
versus
$60.3
$189.0
32.8
—
(2nd Qtr.)
89.0
$27.5
$128.7
56.2
«
indeed.
$72.5
The stock is listed
Vickers Adds
Brothers,
Coburn Micfdlebrook Adds
American
Corpo¬
111 West Monroe Street.
formerly with H. Hentz &
BOSTON, Mass.—Frank T. Rey¬
nolds is
now
dlebrook,
with Coburn & Mid-
Incorporated,
75
State
Street.
Co.
(Special to The Financial Ch :onic:.e)
Bright
BOSTON, Mass. — Pauline L.
Wagner has become affiliated with
(SpcciP.J to The Financial Chronicle)
BOSTON,
is
&
Mass.
now
Co.,
of
the
—
with
84
Samuel
C.
Elmer
with
Co.
i
Street,
York
With J. Logan Co.
and
Boston Stock Exchanges. Mr. Ben¬
formerly
Renyx; Field & Co., Inc.
H.
State
New
Federal
Street.
He
previously with B. C. Morton
Co.
A cut of 6.5 to
of
finished
Proctor,
t
&
Company,
a
with
Reed, Inc.
Waddell
Gregory is
now
with
J. Logan &
Co., 210 West Seventh Street.
formerly
CLEVELAND,
Ohio
—
Ruth
Building,
members
of
Exchange.
the
business for
;
they produced steel for ingots and castings at 96 % of capacity.
was an increase of 0.5 points over the preceding week and
This
consecutive week of rise.
marks the fourth
Selling prices of steel are steady.
As
a
result, "Steel's"
arith-*
composite on finished steel remains at $127.41 a net
unchanged is "Steel's" price composite on steelmaking
metical price
ton.
Also
a
ton.
gross
ferroalloys—
However, the price on
American
Iron
and
F.
Mid¬
Institute
Steel
announced
that
the
steelmaking
capacity of the entire industry will be at an average of 96.0%
of capacity for the week beginning Sept. 26, 1955, equivalent to
2.316,000 tons of ingots and steel for castings as compared with
96.1% of capacity and 2,320,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1955 is
operating rate of steel companies having 96.1% of the
on
capacity
annual
like week
2,255,000 tons.
a
of
125,828,310
month
ago
Jan. 1, 1955.
tons as of
the rate was 93.4% and pro¬
A year ago the actual weekly
production
70.4%. The operating rate is not
comparable because capacity was lower than capacity in 1955.
The percentage figures for 1954 are based on annual capacity of
125,330,410 tons as of Jan. 1, 1954. .
was
placed at 1,678,000 tons or
.
was
joined the staff of Ful¬
Stock
That's enough to
equipment
Meanwhile, it continues, the mills are pushing hard to fill the
In the week ended Sept. 25,..
and
ton, Reid & Co., Union Commerce
west
and
flood of steel orders on their books.
Further Expansion Last Week
The amount of electric energy
(Special to The Financial Chronicle)
Worth has
implement
Electric Output Registered
Joins Fulton, Reid Co.
(Special to The Financial Chronicle)
LOS ANGELES, Calif.—John D.
&
was
current week, since the
less steel, and the steel
whole year, this trade paper observes.
duction
Mississipoi
He
use
13% in 1956 auto production, estimated by an
agricultural
For the
(Special to The Financial Chronicle)
White
will
probably
steel available to other consumers.
the
supply
Now With White & Co.
Valley Building.
industry
industry spokesman, would be equivalent to a five-week absence
from the steel market. This would leave about 1,800,000 n^t tons
The
ST. LOUIS, Mo.—James E. Con¬
ner
has become connected with
With Renyx, Field
Now With Elmer
80
automobile
based
George T.
associated
Securities
&
Change from Week Ago
little easier to get next year, states "Steel"
a
magazine, the metalworking weekly the
scrap—$44.33
Staff
to
be
steelmaking materials—is rising 5.3%. The increases already are
effective on spot orders and will apply to contracts on Oct. 1.
(Special to The Financial Chhonicle)
(Spcua) to The Financial Chhonicie)
become
the
BOSiTON, Mass.—Geno L. Neri
has joined the staff of Vickers
was
has
on
(Special to The Financial Chronicle)
Banks and Insurance Companies.
—
drugs may be
has done an
currently selling at about 38.
117%
111.
increas¬
New York Stock Exchange and is
2.1 to 1
63%
Increase
$100.0
1.8 to 1
CHICAGO,
new
Norwich
expected.
an
job
in
this
specialty
field, and the future looks bright,
1955 Est.
With American Sees.
of
excellent
1940)*
15>40
♦Excluding
nitrofuran
by
Eaton
ma'rketed
may
industry itself will have more capacity.
9.3
__
Steel
more
compounds
as
Steel Production Shows Little
this
introduced
infection
protozoal
Corp. Long-Term Debt
\
After Taxes
Current Assets to Current Liabilities
&
tropical
and in large
highly destructive
diseases of poultry and swine.
The next big step forward came
year
Ratio Corporate Profits to
Corporate Profits
,
Working Capital
was
feed
preven¬
furan for the local treatment of
Net Work. Capital as % of Long-Term Debt
Cook
effective.
of
infections,
as
con¬
physicians
by
treatment
prevention
furan
Prewar
Liabilities
nett
used
was
83.7
—
Current
members
the
43.7
.Assets
Bright
in
38.3
•-
Current
Bennett
incurred
47.9
—
Corporations Are in
was
controlling infec¬
it
particularly
as
dantin
IV
Before Taxes
^$47.3
1955 (2nd
He
in
wounds
and veterinarians for the
tion
cars
car makers are getting less steel than they
result, it is doubtful they can make more than
per month during the balance of the year.
a
There will, states "The Iron
Age," be a backlog of more than
50,000 freight cars at the year's end. But there was a net loss in
freight cars of 50,000 units in 1954 due to scrap losses exceeding
acceptance by the medical
profession.
Another new nitro-
Net Corporate
1950
ration,
specific way.
bacterial resist¬
a
Since 1946 Furacin products have
($ Amounts in Billions)
1945-
with
"tailored" to do
in
Normandy invasion,
Is Higher Than
1940
Golden
or
job
And a widening of share ownership is needed in our economy,
TABLE
1933-
Ratio
in
new
As
broad
1929
Net
"built"
specific
experienced
habits.
Ratio Corporate Profits to Corporate Long Term Debt
-
a
am™g the millions of the first such product marketed
families
moving
above
$5,000
by
Eaton
Laboratories.
First
where the level of income makes tested at base
hospitals in England
possible major changes in stand- where
great difficulty was being
ard of living and savings and in-
corporate
profits (real value)
compares
in
be
can
ownership averaged 4% among Development of
thos(r with incomes under $5,000 ance to the nitrofurans is negli¬
and increased to 33% among those gible, and treatment is accom¬
with incomes over $10,000. There panied by a minimum of undesir¬
obviously is wide opportunity for able side effects.
increased investment and stock
Furacin Soluble Dressing was
to provide the tools and improved
Power
When placed on a constant dol-
'the
stock
Business will need added capital
ings Are About in Line With In-
Jar
of
percentage
tions
Stock Prices and Corporate Earn;
The
15^" ownershiP
term debt has increased from
-iSTofn
of Consumer Finances in early
1955-
4,000
unique class of anti¬
a
microbials
can
year's -vey
a
1940
this
half
debt
ratio
Rafter
in
and
By
cut
corporate
'
long-term
the freight
so,
would like.
week
nitrofurans
scribed
Industry j
when production schedules
already were overloaded. One reason
for this is that railroad cars are considered a
basic defense item.
families—only 8% of the total activity against bacteria, fungi
has dropped to half its prewar consumer spending units owned and
protozoa.
They differ from
relationship to national produc- any stock in 19a4, according to the antibiotics in that
they are
tion. In 1930 corporate long-term the Federal Reserve Board Surwholly synthetic. The nitrofurans
corporate
4
page
The State of Trade and
over $5,000 income after taxes, for plored chemical area with excit¬
example, doubled between 1950 ing possibilities. Using furfural
an.d 1954—from 6.4 million to 12.6 derived from farm wastes (corn
million. By 1960 it is possible that cobs, oat hulls and sugar cane
the nu_mber will more than triple waste) as the starting material,
bie 1950 total—up to an estimated more than 300 compounds of ni¬
22.8 million. These millions are trated furfural have been syn¬
moving up with little concept or thesized. Commonly referred to
knowledge °f the advantagees of as nitrofurans, they are the ex¬
ownership of corporate securities clusive property of Norwich and
or
corporations
'
.«•
Mass millions of families
spectacular has been
more
from
in-
hiphpr
and
Continued
power
distributed by the electric light
industry for the week ended Saturday, Sept. 24, 1955,
at 10,756,000,000 kwh., according to the Edison
estimated
Electric
This
Institute.
week's
output increased 133,000,000 kwh. above
that of
week, when the actual output stood at 10,623,000,000
kwh., revised; it increased 1,684,000,000 kwh., or 18.6% above Jhe
the previous
w
Continued
on page
49
The Commercial and Financial Chronicle
43
Thursday, September
.
.
29,1955
launched
sales
a
November
assets
ior the
31, the company states.
Aug.
campaign's start on Nov.
At the
30,
assets of all Managed
totaled $29,569,b52.
of August, the total
net
share
Funds'
end
the
$38,893,622, accord¬
H. Slayton, Presi¬
dent of the St. Louis firm.
risen
bad
ing
to
Hilton
to
has
assets
Funds'
31, Managed
Since Aug.
total
climbed
anotner
$1,500,000—to about $40,400,000.
of our
for June, July and August,
mutual fund sales usually
"We're
record
■when
especially proud
taper off," Mr. Slayton said. "Dur¬
ing this period, our net assets in¬
creased by $3,727,319—more than
3700.000
over
our
'Million
a
Month' goal."
rise
big contributor to the sharp
of the three-month
period
was
Managed
A
Funds' Electric
net assets in¬
Shares
whose total
creased
million dollars
$1,361,527 to $2,372,438.
by over
—from
a
Investing for Income?
National Preferred
Stock Series
is
mutual fund providing a
a
supervised investment in a di¬
versified group of preferred
stocks selected for their income
possibilities. Prospectus and
other information may be ob¬
tained from your investment
dealer
or:
National
Research
yesterday-
Corporation
Broadway, Now
fund
would
you
shouldering
if,
earn
you
annual
current
your
Accepting
funds,
a
far
"academic" ing
from academic;
are
they
of
Boston
this
week
chased
shares
real and immediate.
are
times
during
39
Broadway, New York 6, N. Y.
the
Million
believe that
we
face
a
weak
compared
with $16,-
assets
reached
a
of the
The
and
assets have crossed the $50
year.
record ;
year-end
million
make
will
fund
The
mark.
payment
-
a
to
announcement of the Axe-
Fund A
by
Daniel
Brady,
Rand, McNally & Co. has just issued the final 1955
edition of its
The
159th edition since 1872.
earlier
$i5.9 billion to $217.5 billion, and
listings indicate that resources are up $18.3 billion from a year
$239.6 billion; deposits are up
E.
a
professor at the Univer¬
loans; $2.0 billion went into municipal and corporate securities, and
$1.6 billion into U. S. Government securities.
Cash and other assets
increased $1.5 billion.
On June 30,
Inc. he will
specialize in commodities related
to meat, such as hides, lard and
nology.
of
margin position in the mar¬
banks than
a
year
A comparative
earlier, but 546 more branches.
yearly record ranging from 1935 to 1955 follows:
TREND
June
At Futures,
wool.
banks and
fewer
reports the Blue Book, there were 14,413
7,042 branches in the United States, Alaska and Hawaii or 146
sity of Missouri's Department of
Agriculture, is an authority on
animal husbandry and meat tech¬
here
both
Resources, Deposits and Capilai Funds of
U. S. Banks Reach New All-Tine Highs
to
Brady has been
appointed a member of the ad¬
visory council of Futures, Inc., a
commodity mutual fund.
Dr.
period
absence
an
Axe-Houghton Fund B total net
Axe-
shareholders
amounting to ap¬
split followed
the shareholders of proximately $294,084 from income
increase in the authorized cap¬ and $1,764,502 from net profits.
new
Personal Progress
we
background
abroad
and
of
contemplat¬
are
"Blue Book Bank Directory," being the
Dr.
do not expect
a
severe
and prolonged market
decline because of the very strong
business
directors
capital funds are up $1.5 billion to $19.2 billion.
About two-thirds of the added funds or $13.2 billion went into
Putnam, chairman of
trustees, stated that "although
uncertainty,
F. W. Wool worth. ;
16.
new
these two
842.
of
Sept.
Aug. 31 last year.
days to¬
shares and repur¬
chases 5,029 shares, a net excess
of sales over repurchases of 13,-
we
business
time Mr. Axe dis¬
Aug. 31 at $107,124,181,
compared
with
$49,510,410
on
George
Inc.,
net
Total
18,871
the
a
peakr on
they resold to the fund.
taled
also established
144,893 in the ten months ended
Aug. 31, 1954.
many
as
31,
$45,339,280,
Tuesday
the stock
during
of
same
that
Houghton
high for the period amounting to
today announced
3V2
over
as
Sales
request
Co.
by
made
to over 31,500
The payment is at
go
Sales for the ten months ended
market "Shakeout" investors pur¬
st
will
shareholders.
3-for-l split soon after the
a
first
an
of
Manager and Distributor of Chemiral Fund, Inc.
close
the
approval
Fund
F. Eberstadt
At
Houghton Fund B
problem
that during Monday and
on
the
at
closed
dollar aspects of your
(joint
after-tax earnings
your
that if
the
represents one of your goals, the
typical
as
mutual
in
higher education for your children
income.
$1,745
shares of
the study declares
invested
today,
paying a year's cost, of
child's college program out
your
of
be
were
Trustees of The George Putnam
Prospectus
and
Now $33
Aug.
including the New Science, Nuclear Chemistry.
represent the 72nd con¬
payment
American Assets
Steady in Break
Diversified Investments in the Chemical Field
24,
record
$5,000 a year
the same rate as a year ago; ad¬
The
fund's
quarterly
report,
20.2% if your annual income is
of
justing for the fund's 100% stock
just issued, for the period ended
dividend earlier this year.
dents,
there
will
be complete $10,000, some 14.1% if $15,000 and
Aug. 31, 1955, shows total net as¬
readiness to agree with an invest¬ 10.9% if $20,000 per year.
George Putnam, Chairman of
These data, the study asserts, sets of $77,140,507 compared with
ment studys findings that today's
Net the trustees, stated that total net
show why early preparation for $51,594,738 on Aug. 31, 1954.
higher costs of higher education
assets
now
exceed
$120,000,000
asset value per share was $29.13
college costs is a must.
Setting
make preparing for college more
compared with $101,000,000 at the
aside cash savings or the purchase excluding a capital gain payment
and more a parents' problem.
year-end and $90,000,000 a year
of government bonds, or both, are of 57 cents in this fiscal year and
A study, released today by Hugh
ago.
steps the study recommends for compares with an asset value per
W.
Long and Company, Inc. of
share of $20.98 last year.
Elizabeth, N. J., sponsor of Fun¬ approaching the program, since
As of the quarter's end the fund
damental
Investors
and
three they offer assurance of having a
fixed number of dollars available had
19,141 stockholders and 2,other mutual funds, recalls that
three centuries ago, for example, when needed. However, by them¬ 648,225 shares outstanding, com¬
selves these "fixed dollmr" invest¬ pared with 17,551 stockholders and
sheep or tubs of butter worth £55
ments in the years ahead may not 2,459,652 shares on Aug. 31, 1954.
—little more than $150 at today's
American Business Shares, Inc.
be able to do the job intended for
Nearly half the fund's assets are
valuation of the pound — would
reports net assets of $32,968,755,
them.
in companies which develop na¬
have sufficed to put a young man
Suppose, for example—the study tural resources, the report notes. equivalent to $4.23 a share, on
through Harvard.
Aug. 31, 1955. Nine months earlier,
Since 1900, however, this sur¬ points out—that in January 1945 In this respect the largest hold¬
when
a
year at
Columbia cost ings are in oil and gas, followed at the end of the company's last
vey of typical annual college costs
fiscal year on Nov. 30, 1954, after
about $1,500, you had "banked"
by aluminum, pulp and paper,
reveals, the trend of college
$1,170
at
2Vz%
interest
com¬ special metals and special chem¬ provision for a 45c per share cap¬
expenses have been steadily up¬
ital gain distribution, each-share
pounded semi-annually.
At that icals.
ward.
And the sharpest propor¬
had a value of $4.04. rate of interest, over the years,
tionate increases during this pe¬
Incorporated Income Fund
The portfolio as of Aug. 31, 1955
these dollars would have grown
riod, the study observes, have
Board of Directors has declared a
to $1,500.
consisted of common stocks to the
But, as the ten years
been recorded since 1945. At Co¬
dividend
of 12 cents per share
extent of 51.56%, with cash bonds
lumbia, Harvard and Stanford, for passed, annual costs for students payable Oct. 15, 1955, to stock¬
at Columbia rose to about $1,916.
and
preferred
and
guaranteed
example, tuitions during the past
holders of record at the close of
You would have been "short" of
10 years have more than doubled,
stocks amounting to 48.44%. There
business Sept. 29, 1955.
the cost of one year's education
while aggregate annual costs for
were no common stocks added in
Axe-Houghton Fund A directors
by some $400. And, of course, a
tuition and residence at Iowa and
have authorized the second 2-for-l the nine months ended Aug.; 31,
Vassar, among institutions sur¬ four-year college program on the
same scale, would have found you
stock split since the Fund started
1955.
Those ; eliminated
were
veyed, are up 50% or more.
short by over $1,600.
in business in 1938. The first one
Noting that today's annual col¬
Bucyrus-Erie; Chance Vought Air¬
Suggesting that a part of the was on April 20, 1946.
lege expenditures are substantial
craft; International Nickel; Loew's
reserves set
aside to prepare for
The new shares are to be dis¬
by any measure, the study shows
a college education might well be
the
tributed Oct. 7 to holders of record Inc.; McGraw Electric; Ohio Oil;
extent
of the
burden
you
if
dren)
this month's exodus
2V2 million college-bound stu¬
Putnam Fund Sales
long Term Growth of Capital and I ncome through
a
planned to make the split effective
Oct. 7, 1955.
chil¬
return, family with two
tax
parents
check-writing
the
To
left behind by
of
possible
approve
income,
1955, to share¬
Sept. 30, 1955.
investment
Oct.
of
secutive
York 5, Now York
The Objective of this Mutual Fund is
to
from
payable
holders
This will
Established 1930
120
voted
dividend of 10 cents per
share
Fund
Stock
a
Kenneth L. Isaacs stated that it is
Higher Costs of Higher Education
The
year's college cost, the study re¬
veals that this amounts to 38.1%
Securities t
Growth
Fund
clared
three-for-one stock split. President
by
their
fund
has exceeded that goal
nine-month period ending
shares,
At
mutual
of
classes
eleven
last
program
increase
to
million dollars a month in
Investors
By ROBERT R. RICH
have de¬
trustees
Putnam
Massachusetts
of
Stockholders
which
Inc.,
Funds,
Managed
shares.
million
Approve Split
Mutual Funds
15
to
million
6
from
stock
ital
Growth Holders
Managed Makes
Monthly Million
a
.
(1320)
30
OF
U.
S. BANKING
Figures—Dollars in Billions
Banks
Branches
Cap.
Surp.
Res.
Loans
U. S.
Undiv.
Govt.
Profits,
Number of—
Year
Deposits Resources Secur.
Other
and
Secur.
Discts
With Daniel D. Weston
Television Fund Sales
Fund
Television
of
record
for the
month
of
August at $2,669,200
compared witn $2,2*2,^4z in
set
a
(special to the financial chronicle)
Electronics
high
BEVERLY HILLS, Calif.—Donaid G. Stelzner has become affiliated with Daniel D. Weston & Co.,
140 South Beverly Drive.
14.413
7,042
$4.9
$9.7
$4.6
$217.5
$239.6
$74.6
$21.5
14,559
6,496
4.3
8.8
4.6
201.6
221.3
73.0
19.5
82.1
1953—
Sales
1955—
1954
ket."
$95.3
14,633
6,073
4.1
8.3
4.3
191.6
210.3
68.6
17.6
78.4
1952
14,711
5,712
4.0
7.9
4.0
186.6
204.3
71.2
17.0
71.0
3.8
7.3
3.9
174.1
190.1
69.2
15.2
64.9
1951
14,744
5,401
1950—
14,775
5,083
3.6
7.0
3.5
165.6
181.0
77.7
13.6
52.8
6.4
3.3
158.2
172.7
75.3
12.3
47.4
1949—
14,808
4,829
3.5
1948—
14,843
4,588
3.4
6.1
3.0
157.0
170.1
76.5
11.1
45.7
1947—
14,846
4,382
3.3
5.8
2.9
155.3
168.4
83.2
10.0
38.9
9.2
32.0
1954.
194G
14,838
4,197
3.2
5.5
2.7
160.9
173.3
96.5
1945
14,796
4,249
3.1
4.9
2.4
152.7
163.7
94.2
8.1
28.3
1940—
15,232
3,781
3.1
3.7
1.7
71.4
80.4
19.9
9.4
22.5
1935—
August,
16,060
3,173
3.6
3.2
1.2
51.7
60.6
14.1
10.3
20.5
Source:
Rand McNally International Bankers Directory or
»Incorporated
U
a
|i Investors
*«•*&:
e.dJ9
mutual fund with
U. S. mutual fund designed to pro¬
vide
a
Establisnea 17
diversified, managed investment
ia stocks selected
on
the basis of pos¬
participation in Canada's growth.
a free booklet-prospectus by
mailing this advertisement to
of
portfolio
Send for
"cleC,Cl
GROWTH of
and
calvin bullock
A
mutual
turn as
as
fonJ.
large
t'^-
Fund
anlV;,,,u
A
-'bout
pr.ne.paU
obtainable
undue
risk of
200 Berkeley St., Boston,
Common Stock Investment
•re
Mass.
Please
{
send
a
Prospectus
upon
request
Prospectus on
□ Incorporated Investors
□ Incorporated Income Fund
Lord, Abbett & Co.
Address
New York
..I
—
Chicago
—
Fund
objectives of this Fund
long-term
capital
and incoma
growth for its shareholders.
Investment
Name..
J
income^
The Parker Corporation,
Established 1894
ONE WALL STREET, NEW YORK 5
Address.
securities
Affiliated
UlbVIHV
»
A
sible
Ntme.
.
"Blue Book.
Atlanta -
—
'•
Loa Angeles
Volume
182
Number 5468
Continued
from
.
.
The Commercial and Financial Chronicle
.
in
Lower
47
page
(1321)
price
beef, hams, lard, butter, coffee, cocoa, po¬
were
tatoes, steers, hogs and lambs.
The index represents the sum total of the price per pound
The State of Trade and Industry
»
" *
*»r
*
*
>
use and its chief function
trend of food prices at the wholesale level.
in 1953.
freight for the week ended Sept. 17, 1955,
16.4% above the preceding holiday week,
according to the Association of American Railroads.
Loadings of
revenue
increased 115,639 cars or
Loadings for the week ended Sept.
17, 1955, totaled 822,214
of 110,986 cars, or 15.6% above the corresponding
decrease of 1,669 cars, or 0.2% below the corre¬
sponding week in 1953.
cars, an increase
1954
week, but
a
U. S. Automotive
Industry Expected to Show Tremendous
4th
at
daily wholesale commodity price index, compiled by Dun
Bradstreet, Inc., declined in the latter part of the week to finish
277.95 on Sept. 20. This contrasted with 278.05 a week earlier,
and
Quarter Surge in Output
units, states "Ward's."
"
Last week's car output advanced above that of the previous
In the corresponding week last year 53,760 cars
on
vast
reported there were 25,090 trucks made
This compared with 21,348 in the previous
Last week the agency
in the United States.
and
week
16,184 a year ago.
Canadian output last week was placed at 3,600 ears and 715
457
and
the
In
trucks.
previous week
trucks,
for the
and
Dominion plants built 2,416 cars
comparable 1954 week 2,058 cars
and 802 trucks.
Level in
to Lowest
Commercial
week
to
industrial
and
failures
to
171
in
The toll
considerably, 28%, below the 239 recorded in the'comparable
week of. prewar 1939.
The week's decline occurred entirely among
bilities
of
$5,000
or
more,
failures with lia¬
which dipped to 141 from 161 in
the
187 last year. Small failures, with liabilities
under $5,000, held steady at 30 and exceeded their level of 25 a
year ago.
Fourteen businesses failed witn liabilities in excess of
$100,000 as against 20 in the preceding week.
previous week and
prices
and
lrom
tion failures declined more
and
appeared in wholesale
sharply to 21 from 30.
Fewer concerns
trade and construction.
reporting 32 failures as against 53. The toll in the Middle Atlantic
States dipped to 64 from 68, and the East South Central and West
South Central States had slightly lower mortality. However, four
higher failures, including the East North Central
States, up to 25 from 21, and New England, up to 17 from 12,
v/hile the South Atlantic toll held even at 10.
Five regions had
more failures
than a year ago while four had fewer. Notable
declines from 1954 centered in the Pacific and South Atlantic
States while failures were only half as numerous.
had
regions
decline in the two preceding months, business
up slightly in August to 888, but the toll was 3%
than in August 1954, when a postwar peak of 912 was estab¬
Following
failures edged
lower
a
lished for the month.
Although there was an increase
in the number of failures, the
Dun's Failure
Index, which reflects the failure rate for each 10,000 enterprises
listed in the Dun & Bradstreet "Reference Book," dipped to 41.6
in August from 42.0 in July. A year ago, 44 of each 10,000 enter¬
prises succumbed, while the prewar rate was 71 in August 1940.
rate for
each 10,000
operating businesses declined.
Wholesale Food Price Index Registers
A
mild
downturn the past week following
Slight Drop
the
rather sharp ad¬
rye,
oats,
week included flour, wheat,
barley, bellies, cottonseed oil,
eggs, rice
and raisins.
to
of
return
work
lower
to
235,900 bags, from 248,079
limited
under
Lamb
prices
were
also lower
Lard
Cattle
demand.
receipts
depress the
helped
to
increased receipts, but
on
despite lower wholesale
prices.
pork
prices moved downward in the latter half of the week
finished
continued
slow
for
attributed
was
export
the
largely
cautious
to
buying
mill
business.
Sept.
15
reported
were
at
week last
same
Con¬
year.
The latter compared with 29,823 in July, and 33,338
year ago.
Registers Moderate Expansion in
weather
business
of retail
level
sponding
1954
volume
trade
of
buying in most
down¬
sales
expanded
and
moderately,
promotions encouraged
consumer
Wednesday of last week
from
to 6%
2
was
the
comparable
New England
percentages:
higher than
ended
ago,
year
a
&
+5; Southwest +4 to
+8
rose
slightly
a
BOSTON
ESTABLISHED
SAN FRANCISCO
1914
Grocery sales
were
appreciably. A considerable rise in the sales volume of frozen
foods was reported with housewives especially interested in frozen
meat products. Retail sales of butter and cheese declined some¬
Dealer
or
the above.
from
to
use
sale
together
the sale
vestors
the
of
with
the
new
funds
institutional
in¬
of
$40,000,000
of
first
mortgage bonds, 3%% series due
1976, to finance in part its current
construction
Kaiser
program.
Aluminum
&
Chemical
Corp. and its subsidiaries comprise
an integrated aluminum
producer
with
operations ranging from the
mining and processing of-bauxite
the
fabrication
aluminum
of
and its alloys into variety of prod¬
ucts.
At
the
present time,
the
capacity
of
its
primary
aluirjinum plants is approximately
408,200
tons
while
flat
its
rolled
and [foil
product capacity is 207,000'tons yearly.
The corporation
also produces basic
refractory ma¬
terials, dolomites, and magnesias;
Consolidated
fiscal
net
sales
for
the
ended
May 31, 1955,
$268,133,000 and net in¬
year
for the period
amounted
to
the preferred stock on the New
York and San Francisco Stock Ex¬
changes where the
common
stock
is also listed.
With Reynolds & Co.
CHICAGO, 111.—Paul K. Shanks
is
with
now
Reynolds
&
Co., 39
South La Salle Street.
With Webber Simpson
CHICAGO, 111.—Oscar R. Hart is
affiliated with Webber-Simp¬
now
son
&
Co.,
Street,
Stock
208
members
South
of
La
the
Salle
Midwest
Exchange.
Joins Beer & Co.
(Special to The Financial Chronicle)
BATON ROUGE, La.—Hugh B.
O'Connor
is
now
with
Beer
&
Company, 234 Third Street.
what.
Wholesale
total
The
orders expanded
With Townsend,
moderately the past week.
dollar volume noticeably
exceeded the level of the
1954 week.
With retailers
seeking to replenish stocks of Fall merchandise,
wholesale inventories decreased in many lines.
the similar period
a
country-wide basis
as
taken from
index for the week ended
Sept. 17,
to
of 1954, while for the four weeks ended Sept. 10,
an
trade
in
New
York
City the
past
sales,
year
a
week
hampered
in
impending hurricane weather and poor
declined 6 to 7% below the volume of the like
ago.
According to the Federal Reserve Board's index department
for the weekly period ended Sept. 17,
store sales in New York City
below that of the like period of last year. In
preceding week, Sept. 10, 1955, an increase of 15% was re¬
1955, declined 6%
corded.
For the weeks ending Sept. 17, 1955, an increase of 4% oc¬
curred.
For the
recorded
a
Dabney
(Special to The Financial Chronicle)
BOSTON, Mass. — Kenneth S.
Cassidy is now with Townsend,
Dabney & Tyson, 30 State Street,
members
of
the
York
New
and
Boston Stock Exchanges.
In the preced¬
increase of 9% was reported. For the period Jan. 1, 1955
Sept. 17, 1955, a gain of 7% was registered above that of 1954.
1955,
the
Prospectuses from your Investment
from
week ago, moderately
high and steady and the consumer call for eggs and coffee rose
period
1^3 Montgomery Street
BOSTON
primary aluminum, will
proceeds
other women's accessories.
for jewelry and
The volume of food sales
INCORPORATED
24 Federal Street
of
(Special to The Financial Chronicle)
the forepart by threats of
HOWARD
The company, a major producer
+3.
exceeding that of the same period last year.
apparel
EATON
1, 1970.
Regular redemption
prices range from $52.50 if called
prior to Oct. 1, 1960, to $51 after
+2 to +6; East 0 to,+4; South and
jackets, sports shirts and furnishings were popular for college wear.
Women's coat and suit sales rose slightly, and there was an in¬
Retail
Managed
than
share.
,
Apparel stores reported slight gains in sales the past week, and
volume was somewhat higher than that of last year. There was a
marked increase in the sale of men's Fall coats and suits. Sports
call
to
up
more
by redemption at $50
or
per
on
Regional esti¬
1954 levels by the following
+3 to +7; Northwest -f-1 to
and Pacific Coast—1 to
creased
not
share and the retirement
thereafter
through
a
purchase
interest
according to estimates by Dun & Bradstreet, Inc.
Midwest
of
years
at
(Special to The Financial Chronicle)
The total dollar volume of retail trade in the period
1955, advanced 4% from the like period last year.
STOCK FUND
per
annually
in Fall merchandise.
varied
five
corre¬
ing week, Sept. 10, 1955, a rise of 11% was registered above that of
BALANCED FUND
$50
next
shares
.
week.
Reduced price sales
mates
and
Application will be made to list
consumer
noticeably above that of the
was
jointly
Corp.
$28,565,000.
districts last week.
dollar
total
The
stimulated
the Federal Reserve Board's
EATON & HOWARD
the
28,000
come
Cooler
Boston
The new preferred carries the
provision for the purchase in each
Latest Week
town
First
totaled
Volume
Trade
Department store sales on
EATON & HOWARD
by 'The
annual
through
season
pre¬
Dean Witter & Co.
to
moderately lower for the period.
decline
35,861 bales.
a
of 126 underwriters headed
Heavy market
temperatures
summer
values remained firm
corresponding
drop of 7.1%.
Commodities quoted higher last
declined
preceding week, and 355,900 in the
in the two
sponding date a year ago, or a
moderate with prices tending lower
Manufacturer demand continued listless.
was
cocoa
cumulative
Chemical Corp.
The stock i&
priced at par ($50 per share) and
was offered by a nationwide
group
large
sumption of cotton in the four-week August period, according to
the Census Bureau, totaled 717,227 bales, or a daily average of
preceding weeks brought the Dun & Bradstreet
wholesale food price index for Sept. 20 to $6.25, from $6.26 a week
earlier.
The current number compares with $6.73 on the corre¬
vances
for
160,564 bales, against 303,348 in the same 1954 period. Trading in
the 14 markets increased as the crop movement gained momentum.
Sales for the week totaled 222,800 bales, compared with 144,400
the
principally for the week's decline,
The Pacific States accounted
the
Exports
all lines; the sharpest declines from 1954
than last year in
failed
roaster demand
declined sharply the past week.
The
off slightly to 35
36, among retailers to 82 from 85, among wholesalers to 19
22, and among commercial services to 14 from 18. Construc¬
from
cocoa
continued
Cotton
week, witn the toll among manufacturers
the
by
week previous and compared with 101,019 bags a year ago.
trade groups had decreases in failures during
All industry and
in
Warehouse stocks of
a
4%%
preferred
Business
occurred, although they remained above the 152 in 1953.
fell
aided
was
following early firmness.
&
failures
the Chicago Board of
coffee. Available supplies pf coffee were some¬
the delay in arrival of some ships owing to
green
of
Oct.
on
storms.
the
Sept. 22 from 191
export busi¬
40,500,000 bushels, about unchanged from
below the 46,100,000 bushels in the
market
tight due to
market.
in the preceding week, according
Bradstreet, Inc.
At the lowest level in six weeks,
showed a marked downturn from a year ago when 212
ended
Dun
coffee
quantities of
hog
decreased
some
week last year.
-The
and
Six Week Period
weekend
previous Week but well
same
shares
sinking fund of 28,000 shares by
grain and soybean futures
Trade last week totaled
the
reaction at the
some
during the past
of the Southwest.
areas
Sales of
prices
Business Failures Decline
was
the receipt of rain
continued drought in
Rye showed independent strength aided by
ness.
what
'
reports of
close
over
brought
was
yesterday (Sept. 28)
public offering of 700,000
ferred stock of Kaiser Aluminum
of
Winter wheat sections but there
many
company
market
with the
&
year ago.
displayed
advance in wheat largely reflected
The
while truck output increased by 3,742 vehicles
16,184 trucks were assembled.
a
continued firmness throughout the
past week. Feed grains were especially strong with prices for corn
bolstered by light receipts at terminal markets, which reflected
a lack of country
selling pressure, firmness in spot markets, and
reports that farmers were not anxious to sell at current market
levels. Some buying was encouraged by reports of further deterio¬
ration in the crop which was maturing rapidly under dry weather
.
and
the like date
on
market
conditions.
19fe>6 model output in the automotive industry for the
latest week, ended Sept. 23, 1955, according to "Ward's Automotive
Reports," is expected to show a tremendous fourtn-quarter surge.
Last week tne industry assembled
an
estimated 124,001 cars,
compared with 122,263 (revised) in the previous week. The past
week s production total, of cars and trucks amounted to 149,091
units, or an increase above the preceding week's output of 5,480
curing the week.
275.98
with
Grain
New
week by 1,738 cars,
to
The
&
The largest issue in recent years
of investment preferred stock of an
industrial
Lower Level
Loadings Rose 16.4% Above Preceding Holiday Week
Car
Aluminum Pfd. Stock
meats in general
Wholesale Commodity Price Index Closes Week at
comparable 1954 week and 2,402,000,000 kwh. over the like week
Bankers Offer Kaiser
of
'
•
.
31 raw foodstuffs and
is to show tne general
49
period Jan. 1, 1955, to Sept. 17, 1955, the index
rise of 2% from that of the corresponding period of 1954.
Joins Jay
Kaufmann
(Special to The Financial Chronicle)
BOSTON, Mass.—Rosario Nohas joined the staff of Jay
W. Kaufmann & Co., Hotel Touvello
raine.
*
Joins Shaw,
Hooker
(Special to The Financial Chronicle)
FRANCISCO,
SAN
Frank
J.
Mohr
is
with Shaw, Hooker
gomery
Street,
Calif.—
affiliated
now
& Co., 1 Mont¬
members
San Francisco Stock
of
tha
Exchange.
{
50
The Commercial and Financial Chronicle
(1322)
The following statistical
Indications of Current
latest week
week
Business Activity
.Oct.
Week
Ago
Ago
*96.1
$96.0
•
93.4
Equivalent to—
and castings (net tons)
.Oct.
—
2
*2,320,000
§2,316,000
2,255,000
oil
(bbls:)
at
Distillate fuel oil
6.655,250
6,684,150
6,700,550
6,196,400
(17,471,000
7,554,000
7,505,000
—
AMERICAN
Previous
Year
Month
Ago
RAILROADS—
August:
in
service
31
$167,358,000
$161,741,000
$151,504,000'
$220,386,000
$223,150,000
$205,008,000
185,837,000
10,615,000
11,401,000
124.437,800'
13,449,000
100,647,000
96,265,000
87,223,000
40,690,000
40,840,000
75,342,000
100,626,000
92,143,000
.47.374,000
$654,855,000
GOVERNORS
OF
71
181,891,000
DEBITS—BOARD
$649,636,000
$562,840,000
36
OF
26,174,000
23,852,000
of
August
thousands)———.
(in
6,969,000
25,954,000
16
Sept. 16
Sept. 16
Sept. 16
at
at
(bbls.)
fuel oil- (bbls.)
Residual
of
OF
Locomotive units installed
1,678,000
16
16
16
16
3ept. 16
—
output (bbls.)
Sept.
Kerosene output (bbls.)
Sept.
Distillate fuel oil output (bbls.)
.— Sept.
Residual fuel oil output (bbls.)
Sept.
Stocks at refineries, bulk terminals, In transit, in pipe linesFinished and unfinished gasoline (bbls.) at
—Sept.
Gasoline
Kerosene
of that date:
are as
THE FEDERAL RESERVE SYSTEM—Month
—Sept. 16
(bbls.)
quotations,
cases or
Month
ASSOCIATION
(bbls. of
each)
in
or,
either for the
are
Latest
BANK
outputr—dally average
condensate
and
42 gallons
production and other figures for the
cover
I
70.4
Thursday, September 29,1955
.
i
PETROLEUM INSTITUTE:
Crude runs to stills—dally average
.
Dates shown in first column
that date,
on
Year
Month
Bteel ingots
AMERICAN
Crude
2
month ended
Month
Week
STEEL INSTITUTE:
(percent of capacity).
AND
Indicated steel operations
tabulations
month available.
Previous
Latest
AMERICAN IRON
or
or
.
BANKERS'
DOLLAR
ACCEPTANCES
2,097,000
2,089,000
26,711,000
2,179,000
11,503,000
11,556,000
10,953,000
10,047,000
7,342,000
7,656,000
7,814,000
7,707,000
152,165,000
154,337,000
155,563,000
Domestic
35,601,000
33,557,000
Domestic
warehouse
141,229,000
137,836,000
125,222,000
124,021,000
Dollar
46,700,000
47,111,000
46,349,000
57,268,000
OUT¬
shipments
35,726,000
151,787,000
37,644,000
STANDING
2,313,000
FEDERAL
—
BANK
RESERVE
OF NEW YORK—As of August 31:
Imports
:
Exports
credits—i
_—
exchange
Based
—
goods
on
foreign
stored
shipped
and
between
countries
-
ASSOCIATION OF AMERICAN RAILROADS'.
706,575
780,863
711,228
614,459
-630,924
583,347
Total
Private
$381,189,000
$265,312,000
285,305,000
222,570,000
174,147,000
147,653,000
158,619,000
91,165,000
$340,883,000
188,154,000
152,729,000
Sept. 22
127,830,000
119,481,000
80,027,000
135,621,000
Sept. 22
Public construction
$432,958,000
Sept. 22
—Sept. 22
construction
State and
19,823,000
39,138,000
11,138,000
Wholesale
Retail
8. BUREAU
(U.
Construction
=
158
532,000
Wholesale
Retail
125
108
106
120
Sept.'24
0,756,000
*10,623,000
10,906,000
171
191
180
212
liabilities
*——
Total
v
INDUSTRIAL)
—
DUN
tc
BRADSTREET, INC
IRON AGE COMPOSITE PRICES:
Finished steel
Sept. 20
.Sept. 20
Sept. 20
(per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)
5.174c
5.174c
'
5.174c
4.801c
$59.09
$59.09
$59.09
$56.59
$44.17
$44.17
$43.83
ERAL
As
of
$11,865,000
4,252,000
4,282,000
4,202,000
8;eo5,ooo
11.225,000
6,289,000
1,987,000
1,502,000
$36,028,000
$32,543,000
$32,582,000
10,983
10,893
9,041
$580,000
$593,000
$794,000
77,007
*39,460
62,047
98,732
51,182
104.693
90,078
60,143
92,475
49,350
36,293
58,648
3,113,467
3,477,711
2,964,639
916,776
910,958
969,781
689,403
689,403
790,737
227,373
221,555
179,044
14,334
14,293
213,039
207,262
173,487
1,636,030
1,499,579
386,551
1,625,264
391,152
28,448
28,448
43,003
48,745
43,752
liabilities.
——
Zinc
■■
Sept. 21
Sept. 21
(St.
Louis) at
(East St. Louis)
Sept.
Sept.
—Sept.
-Sept.
:
at
21
21
21
21
43.475c
44.225c
41.425c
45.125c
41.375c
30.075c
Sept, 27
Sept. 27
Sept. 27
sept, 27
U. 8. Government Bonds
•
>
Aa
97.375c
96.000c
96.250c
93.625c
15.000c
15.000c
15.000c
14.800c
14.800c
In
I4.7o0c
14.800c
14.550c
13.000c
13.000c
12.500c
of
11.500c
95.47
94.99
94.54
107.44
107.44
110.52
110.70
110.70
110.70
115.24
109.06
109.06
109.06
112.19
V.'
Group
—
Utilities
Group—
Group
Industrials
:
NEW
omitted)
of
month
A.—
S.
of
2,000 pounds I
stocks at end of period
PRODUCTION
107.44
107.27
107.62
102.80
102.80
102.80
104.66
105.86
105.86
106.21
109.06
107.80
107.80
107.98
110.70
108.70
108.52
108.16
111.81
2.50
3.14
Rice
2.89
—
REPORTING
CROP
DEPT. OF AGRICULTURE—
S.
Cotton
All
spring
(bushels)__
Durum
(bushels)——
Other .spring (bushels)
Oats (bushels)
Barley (bushels)
Rye
2.90
3.31
3.31
3.31
3.13
3.13
3.13
3.22
3.22
3.22
Sept. 27
3.31
3.32
3.30
3.14
—
____
__J*
3.58
3.58
,3.58
3.47
Group
Industrials
3.40
3.40
3.38
3.22
3.29
3.29
3.28
3.13
3.25
3.25
3.27
3.07
Sept. 27
Group;
COMMODITY
MOODY'S
NATIONAL
—
410.5
409.2
405.4
406.4
INDEX
Orders received
Production
r
•
(tons)—:
Sept. 17
Sept. 17
(tons)
Percentage of activity
Unfilled orders (tons) at end of period
Sept. 17
Sept. 17
246,613
227,826
218,751
290,350
237,378
282,969
80
100
619,331
AVERAGE
=
100
Sept. 23
106.94
106,53
106.68
105.64
Sugar
DEALERS
EXCHANGE
—
SPECIALISTS
AND
SECURITIES
Odd-lot sales by dealers
ON
Y.
N.
EXCHANGE
STOCK
(customers' purchases)—t
Number of shares
Sept.
3
975,702
986,650
1,133,728
901,335
Dollar
Sept.
3
>3,550,016
$54,134,322
$62,463,360
$42,999,937
value
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'
Sept.
bept.
Sept.
Sept.
short sales.
Customers' other sales
Dollar value
3
802,475
790,049
887,576
Pears
3
4,916
4,724
5,984
Cranberries
13,983
3
797,559
785,325
881,592
878,125
3
59,503,986
$38,297,221
$46,293,057
3
210,440
230,940
3
218,400
210~440
230~940
3~14~790
Sept.
3,
391,870
418,790
450,540
METAL
Total sales
FOR
ACCOUNT
OF
_____
_
1,023,070
398,715
356,031
25,963
2,258,867
2,240,446
29,880
2,236,408
392,539
;
7,Q56
6,929
7,481
12,219
12,124
14,091
43
42
(tons)—
;
—
^
27
37,946
1__
___:
43,363
108,201
109,512
47,830
(bushels
38,700
107,389
—
crop
48,773
61,316
30,510
30,434
3,134
2,569
*
3,186 *
(tonsi__
270
270
:
____'
206
'258
-155
1,112
1,018
70,840
81,440
90,510
83.5
(tons)—
82.8
81.5
258
——
(5
COMMERCE
COMMISSION—
at middle
of
Gold
(in
Silver
3
504,440
597,140
445,800
378,200
3
8,953,150
9,542,710
10,719,800
July:
9,457,590
10,139,850
11,165,600
9,930,630
fine
(in
(in
.
v
—_1—:__—»—
ounces)
short
tons)
*160,022
164,451
*3,176,632
2,963,203
*89,507
66,551
26,538
,
132,265
33,826
ounces)
2,510,012
*28,442
25,364
£211,272,000
£134,814,000
£116,066
$101,242,547
$87,376,958
$58,296,627
24,400,564
18,140,896
-19,75(^84
125,643,111
fine
105,517,854
78.052,711
___:
9,552,430
3
of
(BUREAU OF MINES)—
United States:
—
3,484
342.795
420,043
1,551,095
18,899
30,863
OUTPUT
Copper
TRANSACTIONS
387,527
3,052
-
Mine production of recoverable metals in the
Total round-lot sales—
BOUND-LOT
seed
of
Month
Sept.
Sept.
Sept.
2,933
36,137
__;
Railway Employment
August (1947-49 = 100)
*
TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
sales
4,773
18,776
2,833
.
—
Index
278,540
218,400
Round-lot purchases by dealers-
Other
4,755
18,922
___•
States) (barrels)
(pounds)
r__
Pfecans
314,790
3
Sept.
Short sales
27,579
$39,872,818
Sept.
Number of shares—.—
49,328
25,717
1,689,325
;
States)
(3
10,184
53,097
*
(bushels)
Apricots
13,696
'
Sept.
sales
Other
51,699
,26,731
—_
(tons)
INTERSTATE
Short sales
104,380
9,939
____
_—
.Grapes (tons)
Cherries (12 States)
892,108
pfnd-lot sales by dealers—
lumber of shares—Total sales
58,853
204,087
12,728
109,101
10,355
-
108,464
;
Hops (pounds)
Apples, commercial
Peaches (bushels)
COMMISSION:
23,688
41,534
265,945
*
-
(bushels)
(tons)
beets
370,126
47,974
—____
(bushels)
Broomcorn
'
12,873
__
beans
5,557
226,776
—
Sweetpotatoes (bushels)
Tobacco (pounds) __1
Sugarcane for sugar and
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
(bushels)
(pounds)
Potatoes
408,830
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
for
Peanuts
93
682,853
grain
(bales)
Soybeans
244,607
104
bag)—
__—
235,147
635,802
(100-lb.
,
all (tons)
wild (tons)—
Hay, alfalfa (tons)——
Hay, clover and timothy (tons)___
Hay, lespedeza (tons)
Beans, dry edible (100-lb: bags)_
Peas, dry field (100-lb. bags)_
ASSOCIATION:
PAFERBOARD
_
Hay,
Sept. 27
Sept. 27
Sept. 27
—
Group,
_
(bushels)
(bushels)
Hay,
Sept. 27
_
—II—III"I"III—II"I—II
Utilities
*
(bushels)
Sorghum
3.05
j.
2.87
Baa
Public
< tons
Flaxseed
110.52
Sept. 27
Railroad
j.
pounds)
.
2.84
...
A
.
_
Sept. 27
Sept. 27
Sept. 27
...
Aaa
1__
pounds)__.
pound?)—
—
Average corporate
August:
2,000
(tons
A.
copper
Winter
MOODY'S BOND YIELD DAILY AVERAGES:
U. B. Government Bonds.
YORK—
Crop reported as of Sept. 1 (in thousands):
Corn, all (bushels)
Wheat, all (bushels)—
;
;
-
Public
S.
BRADSTREET,
OF
U.
2,000
of
2,381,000
fabricators—
BOARD U.
99.94
107.44
to
2,000
Sept. 27
Sept. 27
—
-
-
Railroad
U.
Refined
of
(tons
Deliveries
Sept. 27
Sept. 27
Sept. 27
A
—
(000's
(tons
2,336,000
;
OUTSTANDING—FED¬
31
August
Refined
CROP
Average corporate
Baa
PAPER
$12,388,000
IN THE
(NEW)
&
August
BANK
Crude
29.700c
43.450c
MOODY'8 BOND PRICES DAILY AVERAGES:
Asa-
of
Copper production in
Electrolytic copper—
Domestic refinery- at—
Export refinery at
Straits tin (New York) at
Lead (New York) at
Lead
STATES—DUN
INSTITUTE—For
COPPER
(E. Sc M. J. QUOTATIONS):
METAL PRICES
912
9,663,000
RESERVE
$30.17
80
861
r
10,024,000
liabilities
COMMERCIAL
68
888
$10,102,000
liabilities
INC.—Month
.
100
•„
service
UNITED
,
451
1.
liabilities
liabilities
Commercial
94
423
102
-
59
*
9,072,000
Sept. 17
A
AND
187
89
430
134
BUSINESS INCORPORATIONS
(COMMERCIAL
FAILURES
179
107
number
service
Manufacturers
8,055,000
365,000
r.
'
___.
number
Construction
100
(in 000 kwh.)
output
9,475,000
431,000
RESERVE
IDI80N ELECTRIC INSTITUTE:
Electric
8,570,000
562,000
-Sept. 22
AVERAGE
SYSTEM—1947-49
9,970,000
Sept. 17
Sept. 17
;
DEFARTMENT STORE SALES INDEX—FEDERAL
August:
number
number
Commercial
OF MINES):
(tons)
Pennsylvania anthracite (tons) —
<
number
number
Total
Bituminous coal and lignite
BRADSTREET,
&
17,108,000
municipals—
Federal
COAL OUTPUT
of
Manufacturing
__Sept. 22
construction
8.
—
FAILURES—DUN
INC.—Month
NEWS-RECORD:
Total U.
*
BUSINESS
ENGINEERING
CONSTRUCTION
ENGINEERING
CIVIL
822,214
661,927
!
freight
Revenue
Sept. 17
(no. of cars)—Sept. 17
freight loaded (number of cars)
received from connections
Revenue
Lead
(in
short
tons).
;
NEW CAPITAL ISSUES IN
•-
MEM¬
MIDLAND
GREAT
BRITAIN—
LTD.—Month
BANK
of
August
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registeredTotal purchases
Sept.
Short sales
Sept.
Other
sales
Total sales
on
211,310
1,038,230
1,176,290
1,236,240
1,389,210
1,210,080
247,650
305,400
321,290
12,300
285,910
29,800
261,360
25,300
330,810
18,700
213,630
,
Total sales
—
291,160
356,110
312,320
Other transactions initiated off the floorTotal purchases
422,060
665,531
507,904
385,630
205,900
91,720
594,527
863,634
602,467
50,950
404,088
sept.
Total sales
..—Sept.
;
Total sales
.
—
NEW SERIES
<1947-49 = 100):
—
.
_
uTs~ D~EPT~.
1,069,534
694,187
Other
2,170,251
2,152,744
CLASS
I
Commerce Commission)—
328,330
income
1,771,437
2,148,254
2,111,177
2,131,447
2,596,934
2,439,507
Other
*
.....
...
Net
—_
—:——__:
:
~
income
deductions
available
Income
,
after
for
from
fixed
income.
charges.
1,735,938
1,977,438
:
j
-42,964,498
3,554,427
3,012,663
67,008;628k
39,951,835-
*
44.134-.20t:
32,240,831.
34,772,732
On
44.152,033
20,890,455
29.413,788
preferred stock—
5,745,922
;
fixed charges
\
1,281,467
9,360,821
TREASURY MARKET
3.83
3.27-
$20,344^000
OF
43,668,986
-
16,082,079
.
stock
common
to
70,563,056
37,910,184
taxes
income
74,579,837
,86,674,628
a—*
appropriations:
of
3,472,874
101,605,146
89,910,090
charges
On
Ratio
3,912,708?
3,235,462
fixed
income
Dividend
,
121,691,708
deductions
income
,
3,951,403
Depreciation (way & structure & equipment)
241,500
Sept
May:
Miscellaneous
1,889,280
448,680
of
Total
455,038
1,873,580
360,010
2.36
$74,776~3odt
4
,
TRANSACTIONS
IN DI-
1
Commodity Group—
RECT
Ail commodities
Sept. 20
111.4
111.4
110.5
109.9
Farm
Sept. 20
89.5
*89.6
88.3
92.8
Net
Sept. 20
*—————Sept. 20
101.8
102.2
101.4
105.8
Net
84.6
85.4
84.5
117.0
114.4
AND
GUARANTEED
SECURITIES
90/3
products
Processed
Meats
foods
.——s
All eommoditiea other than farm and foods
—Sept. 20
117.9
'
-
117.8
•OF
ZINC
of
as
S.
railway operating- income
Federal
sales
PMOLESALK PRICES,
729,227
_sept.
sept.
sept.
Total round-lot transactions for account of members—
Total purchases __—.
Short sales-—
Month
Net
Income
Short sales
sales
U.
OF
293,620
225,930
Sept.
—
ITEMS
(Interstate
RYS.
1,182,360
171,850
1,177,900
the floor—
Other sales
LABOR
1,339,440
212,980
1,023,260
Sept.
Sept.
—Sept.
:
—
Total purchases
Short sales
Other
1,218,810
213,010
963,280
.Sept.
—
Other transactions initiated
Other
1,203,870
Sept.
Sept.
134,700
—
INCOME
SELECTED
•Revised figure,
fllncludes 758,000 barrels of foreign crude runs,
of Jan. 1, 1955, as against Jan. 1, 1954 basis of. 124,330,410 tons.
tNumber
of
orders
not
reported
since
introduction
of
§ Based
on
new
Monthly Investment Plan.
annual
capacity of 125,828,310 tons
USA*.—Month of August:
sales;
—-—
OXIDE
(BUREAU
$17,1.54,500
_
purchases
OF
MINES)—Month
July:
Production
(short
11,838
Shipments (short tons)
Stocks at end of month
17,171
10,78a
11,585
12,863
11,828=-
13,636
12,873
tons)
(short tons)
33,251-
Volume 162
Number 5408
The Commercial and Financial Chronicle
...
* INDICATES
Securities
Academy Uranium & Oil
Now
Corp.
June 10 (letter of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For
mining operations. Office—65 East Fourth South
St., Salt Lake City, Utah. Underwriter—Western States
Investment Co., same city.
Admiral
Finance Corp.,
St. Louis, Mo.
in
•
plied by amendment. Proceeds—To repay borrowings;
for exploration and development of oil and gas prop¬
erties and further acquisitions. Underwriter—None, of¬
fering to be made on a "direct communication" basis
by brokers.
Allied Industrial Development
$513,182.50 of outstanding junior subordinated deben¬
tures, series B, and for expansion and working capital.
Underwriter — Paul C. Kimball & Co., Chicago, 111.
Underwriter
Paul C. Ferguson &
—
*
St. Louis, Mo.
Admiral Finance Corp.,
of shares of
July 29 filed 50,000 shares of 60-cent cumulative pre¬
ferred stock (par $5) and 10,000 shares of common stock
(par 10 cents) to be offered in units of five preferred
and one common share.
Price — $50 per unit.
Underwriter
Paul C. Kimball & Co., Chicago, 111.
general
stock (no par). Price—Not to ex¬
offering price of $50,000. Proceeds—For
corporate
Office
purposes.
•Street, Kansas City, Mo.
—
West
406
34th
Underwriter—None.
—
Calif.
Hills,
Beverly
Corp.,
Sept. 19 filed 1,245,000 shares of common stock (par 10
cents) to be offered for subscription by common stock¬
holders on a share-for-share basis.
Price—To be sup¬
Allstates Credit Corp., Reno, Nev.
June 27 (letter of notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common
stock
(par $1)
to be offered
share of each class of stock.
ceeds—For
in
units
of
one
Price—$11 per unit. Pro¬
etc.
Office—206 No. Vir-
working capital,
ISSUE
ISSUE
Underwriter—Senderman & Co.,
Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
—$11
one
share of each class of stock. Price
unit. Proceeds—For construction of hotel and
related activities and for contingencies, stock in trade,
and
per
working capital. Underwriter—None.
Alouette Uranium & Copper Mines, Inc.,
development
expenses,
common
stock.
etc. Underwriter—Hudson-Bergen'
Securities, Inc., Cliffside Park, N. J.
Aluminum Co. of America
V
(10/3)
Sept. 13 filed 200,000 shares of
common stock (par $1).
supplied by amendment. Proceeds—To
Arthur V. Davis, Chairman of the Board, Underwriter—
The First Boston Corp., New York.
—
To
be
Amarilla Uranium, Inc.
July 27 (letter of notification) 6,500,000 shares of com¬
mon
stock.
Price—One cent per share. Proceeds—For
expenses incident to mining activities.
Underwriter—
Weber Investment
NEW
REVISED
address.
Price
shares
Aeco
ITEMS
Price—30 cents per share. Proceeds—For exploration ancj
undetermined number
common
ceed aggregate
PREVIOUS
Montreal, Canada
July 22 (Regulation D) 1,000,000 shares of
if Allied Laboratories, Inc., Kansas City, Mo.
an
Bame
Co., same ad¬
dress.
Sept. 12 (letter of notification)
ginia St., Reno, Nev.
offered in units of
Corp.
(letter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil
and gas operations. Office—1508 Capitol Ave., Houston,
Tex.
ADDITIONS
SINCE
June 20
July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due Sept. 1, 1970.
Price
—At 100% of principal amount. 'Proceeds — To retire
51
(1323)
Co., Ogden, Utah.
if American Business Research, Inc.
CALENDAR
Sept. 15 (letter of notification) 10,000 shares of common
(no par). Price—$5 per share. Proceeds — For
stock
October
(Thursday)
September 29
..Common
Heine & Co.
(Bids
11
a.m.
Equip. Trust Ctfs.
Pennsylvania RR.
(Bids
noon
Inc.) $300,000
(Barrett Herrick & Co.,
Common
1
Common ';
•
■
by Lee Higginson Corp.;
& Co.) 341,380 shares
Financial Corp
........Common
stockholders—underwritten by Rauscher,
and
Co.
&
(Lee
&
•
$1,500,000-
Inc.)
Co.,
•
.
Co.)
(Equitable
Corp.)
-
(Bids 11
Corp.
Co.)
(Bids
noon
&
Co.)
to
(Offering
Austin
.
Rupe
(Garrett
Brothers,
(Eids
First National
noon
CDT)
to
(Offering
Inc.)
Equip. Tr. Ctfs.
stockholders) $6,000,000
dealers) $3,000,000
Haupt & Co.)
$600,000
Preferred
11
Houdry
Process
(Paine,
be
Invited)
(Thursday)
a.m.
EDT)
Can Co._
..Common
Stanley & Co. and Clark, Dodge & Co.) 392,000 shares
(Morgan
Common
Maine Power Co
(Offering to stockholders—underwritten
Co. Inc.; The First Boston Corp.; and
505,719 shares
(Bids
be
to
invited)
Rochester
stockholders—may be
First Boston
Corp.)
October 10
Copperweld
Steel Co
Read & Co. Inc. and
Systems,
Craig
(Hemphill,
Inc
Noyes &
underwritten by The
195,312 shares
to
Curtis)
40,000
a.m.
shares
Riter & Co.) 230,000 shares
..Common
Bonds
EDT)
$15,000,000
Splendora
Common
(J. H.
Lederer Co., Inc.
Spray
Cotton
and McGrath Securities Corp.) $600,000
Mills
(Bids 3 p.m.
EDT) 2,610 shares
Common
life
insurance
Uranium Corp.,
Las Vegas,
Nev.
expenses
incident to
South Fourth
mining
activities.
Street, Las Vegas, Nev.
Un¬
(par $1).
Price—$5
per
share.
Proceeds—To set
factory and purchase equipment and machinery for
manufacture
and sale of the "grip-lock" driver and
screw.
Office—137 Grand St., New-York, N. Y. Under¬
N. Y.
(letter of notification) $275,000 of 15-year 5%
registered debentures due Sept. 17, 1970. Price—At
100%
geant St., Holyoke, Mass.
Underwriter—None.
Continued
on
page
52
(Tuesday)
11
a.m.
EDT)
1,507,303
to
be
invited)
Debentures
$30,000,000
(Wednesday)
(Territory of)
(Bids
to
be
Bonds
invited)
November 29
11:30
a.m.
December 6
$7,500,000
(Tuesday)
EDT)
Bonds
$18,000,000
New York.
(Bids to be invited)
$12,500,000
Boston
Philadelphia
(Tuesday)
Virginia Electric & Power Co.__
t
shares
(Tuesday)
Tel. & Tel. Co
(Bids
Common '
Film Corp.
of
Common
Co.) 175,000 shares
(Tuesday)
holders
(in units of $500 each). Proceeds—For erection of build¬
ing, working capital, liquidation of junior bonds, retire¬
ment of preferred stock and expansion. Office—74 Sar-
(Friday)
San Diego Gas & Electric Co
October 11
by
if B. M. D. Cooperative, Inc., Holyoke, Mass.
November 16
Hawaii
subscription
up a
Aug. 19
;
stockholders—bids
(Bids
Common
for
$25,000,000
(Wednesday)
November 15
(Monday)
Phoenix, Ariz.
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,
Preferred
Inc.)
Co.
New England
Co.,
policies issued by Public Life Insurance Co. t Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
■stock
(Tuesday)
November 1
(Offering
Finance
Automatic Tool Corp.
(Offering to stockholders—underwritten by Lehman
Brothers;
Goldman, Sachs & Co.; and The First Boston Corp.)
209,685 shs.
Southern
Public
Bonds
Common
&
October 28
Common
Telephone Corp
(Offering to
(Dillon,
130,410 shares
(Friday)
October 7
Arizona Cinnabar Corp., Mesa, Ariz.
Aug. 31 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
To increase capacity of mill recently constructed. Office
—400 Desert Air Lodge, Route 2, Mesa, Ariz.
Under¬
writer—James Anthony Securities Corp., New York.
derwriter—None.
Indianapolis Power & Light Co
Common
England Telephone Co
Southern New
1
by Harriman Ripley &
Coffin & Burr, Inc.)
Underwriter—None.
Proceeds—For
American
Central
Proceeds—For construc¬
Price—At face amount.
if Arizona
(Thursday)
Jackson
11:30
share, payable by sur¬
Sept. 7 (letter of notification) 20,000 shares of common
Long Island Lighting Co
(Bids
per
of debentures and payment of $48 in
Sept. 16 (letter of notification) 6,000,000 shares of non¬
assessable common stock.
Price—Five cents per share.
$15,000,000
(Probably Blyth & Co.,
1
$100
salesman of the insurance firm.
(Wednesday)
October 26
October 6
cash.
of
Bonds
Pacific Gas & Electric Co
Co.) 110,000 shares
render
Office—710
19
October 25
Common
to be convertible into common stock be¬
are
ginning Dec. 13, 1955, at $148
by
$8,500,000
Corp
Webber,
debentures
up
Preference
stockholders—underwritten
Ripley & Co. Inc.) $24,346,900
(Bids
(10/6)
Telephone & Telegraph Co.
to $637,165,800 of 12-year 3%% con¬
vertible debentures due Oct. 13, 1967, being offered
for
subscription by stockholders of record Aug. 25,
1955, on the basis of $100 of debentures for each eight
shares held; rights to expire on Oct. 13, 1955.
The
Aug. 2 filed
offered
Common
$17,250,000
Fenner & Beane) $8,500,000
October 20
Debentures
of America
(Ira Haupt &
Co.)
New York State Electric & Gas Corp
Common
Co.
York.
Arizona
(Tuesday)
&
Worcester County Electric Co
to
21
Sept. 16 filed 78,006,081 shares of common stock to be
Debentures
common
Harriman
Can
filed
392,000 shares of common stock (par
$12.50). Price—To be supplied by amendment. Proceeds
To
selling stockholders.
Underwriters — Morgan
Stanley & Co. and Clark, Dodge & Co., both of New
Sept.
Common
shares
Corp
(Offering to
$3,900,000
America
(Ira
Servo Corp.
Corp
1,200,000
Aircraft Corp
October
Light Co
(Expected by local
Corp. of
Maid
(Bids
Bank of Dallas
Pacific Power &
Debentures
$30,000,000
& Oil
Peabody
(Merrill Lynch, Pierce,
(Wednesday)
Western Ry
Chicago & North
(Kidder,
$8,437,500
& Son)
October 5
Servo
Common
stockholders—may be underwritten by Walker,
Waggoner; The First Southwest Co.; and
&
Dallas
$500,000
Southern Bell Tel. & Tel. Co
Trans-National Uranium
-
Preferred
—
(Bache
•t
,
American
tion program.
Common
Resistoflex Corp.
United
$10,000,000
of Dallas
Republic National Bank
Pierce
(J. R. Williston & Co.) 200,000 shares
Minute
Bonds
EDT)
Rauscher,
shares
Nortex Oil & Gas Corp
—Debentures'•
Light Co
Pacific Power &
and
340,000
International Resources Fund, Inc
EDT) $35,000,000
a.m.
Common
Co., Inc.) $900,000
-
(Tuesday)
Electric & Gas Co
Public Service
$8,000,000
Common
Securities
•
American
Common
$450,000
Debentures
Higginson
&
Brothers
(Monday)
October 18
October 4
Lehman
Companies, Inc
:
.
by
160,000 shares
(Bids to be Invited)
Yellowknife Uranium Corp
_f
.Common
'
(Gearhart & Otis, Inc. and F. H. Crerie
j
Common
Mines, Inc
(Barrett Herrick &
770,000 shares
& Co.)
Russ
(Thursday)
October 17
„
Life
Household Finance Corp
Pierce
Rio de Oro Uranium
and
Co.;
organizational costs and working capital. Office—2210
Washington Ave., Silver Spring, Md.
Underwriter—
None.
—
13
Blyth & Co., Inc.)
2,000,000 shares
(Offering to stockholders—underwritten
White, Weld & Co.; and William Blair
&
Fort Pitt Packaging International, Inc.
$300,000
Oil Co
(Dallas Rupe & Son, Inc.)
Staats
R.
75,940 shares
Co.)
stockholders—underwritten
and
Common
Commonwealth Life Insurance Co
Dillon & Co.)
William
Barium Steel Corp
...Common
(Victor V.) Co
Southwestern
(Offering to
to
Common :
200,000 shares
(The First Boston Corp.)
Co.;
(Tellier &
Aluminum Co. of America
Cuban American
(Offering
(Monday)
October 3
&
October
Common
(Eastman,
Eichler
Louisville Gas & Electric Co
Telegraph
underwriting) $48,688,100
(Offering to stockholders—no
100,000 shares
Common
First California
Co.
Clad
(Bateman,
(Saturday)
October 1
Mountain States Telephone &
-—Common
Market Basket
$7,965,000
EDT)
(Wednesday)
(Blyth & Co., Inc.)
shares
1,068
EDT)
12
Consolidated Freightways, Inc
Preferred
Pittsburgh
San Francisco
Private tVires to all
offices
Chicago
Cleveland
The Commercial and Financial Chronicle
52
Thursday, September 29,1955
....
<1324)
Continued from page
(letter of notification) 15,000 shares of com¬
15,000 shares of 6% non-cumu¬
lative preferred stock (par $10).
Prices—For common,
$1 per share; and for preferred, $10 per share. Proceeds
—For promotional costs, inventory and equipment, and
■working capital. Office—142-B So. Bargan Street, Flor¬
15
stock (no par) and
mon
Underwriter—None.
S. C.
ence,
Industries Corp.
Bassons
•
(letter of notification) 124,000 shares of com¬
mon stock (par 50 cents).
Price—$2 per share. Proceeds
—For working capital, etc.
Office — 1424 East Farms
24
Aug
Salt Lake City, Utah
notification) 7,000,000 shares of capital
stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining expenses, etc.
Office—2630 South
2nd West, Salt Lake City, Utah.
Underwriter—Denver
Securities, Inc., Denver, Colo.
Aug. 10 (letter of
-Big Owl Uranium Mines
July 29 (letter of notification) 2,000,000 shares of com-,
icon stock. Price—15 cents per share. Proceeds—For ex¬
Underwriter
activities.
penses incident to mining
Cranmer & Co., Denver, Colo.
—
.
Uranium, Inc., Spokane, Wash.
Big Smoke
Sept. 7 (letter of notification) 800,000 shares of common
slock (par 10 cents). Price—25 cents per share. Proceeds
—For mining expenses. Office — 303 Lincoln Savings
B!dg., Spokane, Wash.
Underwriter—Standard Securities
Co., Oklahoma City,
Black Panther Uranium
Okla.
July 12 filed 500,000 shares of common stock (par 10
cents).. Price—$1 per share.
Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—
&
—None.
New York, N. Y.
stock (par one
to be offered pub¬
and for general corpor¬
Underwriters—General Investing Corn.
and Shaiman & Co., Denver, Colo. Offering
tion and development expenses
★ Cottonwood Uranium Corp., Reno, Nev.
ate
Sept.
purposes.
New York;
—Expected sometime in October.
Co.,
Proceeds—For
Office—206
to
Consumers
basis
Corp.,
Los Angeles, Calif.
filed 52,942 shares of capital stock (par $10)
for subscription by stockholders on the
one
new
share for each share held. Price—
of
$15 pej* share. Proceeds—From sale of stock, together
with other funds, to be used for payment of 5% sinking
fund mortgage
J.
Strauss
S.
both of
bonds due Dec. 1, 1955. Underwriters—
Co. and Lawson, Levy and Williams,
&
Francisco, Calif.
San
assessable
cents
shares of non¬
Price — Two
Proceeds—For expenses incident to
Office—139 N. Virginia Street, Reno,
capital
share.
per
(par one cent).
stock
mining activities.
Cross-Bow Uranium Corp.
ceeds
July 15 filed 1,434,123 shares of non-cumulative par¬
ticipating preferred stock (par $10), of which 270,943
shares are being offered in exchange for shares of $1
capital stock of Calvan Consolidated Oil & Gas Co.
the
basis
of
share
of
Canadian
Petrofina
for
exchange
for
Western Leaseholds Ltd.
stock
held.
expire
These
Leasehold Securities Ltd.
offers have
been
extended
and
on
will
Underwriter—None.
Sept. 30.
on
shares
or
1,163,180 shares are
of common stock of
stock
cent). Price—15 cents per share. Pro¬
ceeds—For exploration and development expenses. Un¬
(par
one
derwriter—'Tellier & Co., Jersey City,
N. J.
(10/3-7)
•.
(par 50
Drilling & Exploration Co.) for drilling and
Office—Dallas, Texas. UnderwriterSon, Inc., Dallas, Texas.
American
exploration costs.
Dallas Rupe &
Dawn Uranium & Oil
Co., Spokane, Wash.
(letter of notification)
Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.
Empire State Bldg., same
Uranium Mines,
mon
Proceeds—For
Office—170
expenses
Grand
Vista
—
Columbia
★
Inc..
of record Sept.
five
$1).
about
Tulsa, Okla.
Oct.
on
of
24.4%
To
—
10. Portsmouth Steel Corp.,
outstanding stock, will pur¬
shafes.
Price — $12 per share.
note. Underwriter —
help retire RFC
incident to mining activities. Office
Place, Salt Lake City, Utah. Underwriter
States Investment Co., same city.
ceeds—For expenses
—15 Exchange
—Western
Dix Uranium Corp.,
Provo, Utah
(letter of notification) 6,000,000 shares of non¬
stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290
North University Ave., Provo, Utah.
Underwriter —
Weber Investment Co., Provo, Utah.
Aug. 10
Un¬
assessable capital
Y.
Omaha, Neb.
Proceeds—For working capital.
Office—3023
St., Omaha, Neb. Underwriter—Wachob-Bender
Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
(letter of notification) 1,000 shares of 5%%
preferred stock. Price—At par ($100 per
share).
expire
of
Dinosaur Uranium Corp.,
etc.
cumulative
Farnam
to
the basis of one new share for each
(with an oversubscription privilege);
None.
Insurance
derwriter—Eastman, Dillon & Co., New York, N.
6
(par $1),
on
chase any unsubscribed
Phoenix, Ariz.
Office—616 South Main St.,
22
owner
„
Life
Corp.
held
shares
rights
Aug. 22 (letter of notification)
June
Detroit Steel
Proceeds
Sept. 9 filed 700,000 shares of capital stoclT (par
Price—$2 per share. Proceeds—For working capital,
Commonwealth
Proceeds—For
Office—726 Paulsen Bldg.,
city.
being offered for subscription by common stockholders
Colo.
Underwriter—None.
1,500,000 shares of com¬
10 cents per share.
—
Aug. 30 filed 503,155 shares of common stock
incident to mining operations.
Road, Grand Junction, Colo.
Securities Co., Denver and
Commonwealth Credit Corp.,
Price
stock.
uranium and oil exploration.
July 12 (letter of notification) 15,000,000 shares of com¬
mon stock (par one cent).
Price—Two cents per share.
Community Credit Co.,
Canadian Uranium Mines, Ltd., Montreal, Canada
June 3
(regulation "D") 2,000,000 shares of common
1026 Kearns
Price—To be supplied by amendment. Proceeds
—For acquisitions and advances to subsidiary (Cuban
June 16
•
—
cents).
Washington, D. C.
reserves.
in
Co.
(letter of notification) 700,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual
10 shares of Western Leaseholds or Leasehold Securities
offered
Cuban American Oil
★
Aug. 20
the basis of three shares of Canadian Petrofina for each
one
each four shares of Calvin stock and
Office
Sept. 9 filed 2,000,000 shares of common stock
Co. (10/3-7)
60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
credited to capital stock, unassigned surplus and reserve
for business development and for expansion and life
on
For mining operations.
—
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt
Lake City, Utah.
city.
Grand Junction,
Canada)
(Montreal,
Ltd.
Petrofina
Canadian
,
Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon
stock. Price—At par (six cents per share).
Pro¬
Underwriter—Birkenmayer & Co.,
Comet Uranium Corp.,
Underwriter
Underwriter—None.
Nev.
par
same
Commercial
★ Calute Minerals, Inc., Reno, Nev.
Sept. 15 (letter of notification) 15,000,000
•
Bldg., Denver, Colo.
offered
be
incident to mining operations.
Virginia St., Reno, Nev.
expenses
N.
,
—
Sept. 21
(letter of, notification) 300,000 shares of non¬
common stock.
Price—At par ($1 per share).
19
assessable
.
California
Denver, Colo.
Building, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.
/
Proceeds—For explora¬
Houston, Tex., on "best efforts
★ Color, Inc.
■
basis."
■'v.
Sept. 19 (letter of notification) 12,000 shares of com¬
Blenwood Mining & Uranium Corp., Denver, Colo, r mon stock (no par) to be offered to employees under
an incentive restricted
stock option and purchase plan.
July 29 (letter of notification) 1,000,000 shares of com¬
Price—At 85% of the mean between the high and low
mon stock (par 10 cents).
Price — 30 cents per share.
Proceeds
For expenses incident to mining operations.
quotation at which the common stock shall have been
sold on the American Stock Exchange on the date of the
Office—612 Kittredge Bldg., Denver, Colo. Underwriter
granting of the option, which expires on Nov. 16, 1955.
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
Proceeds—For general corporate purposes.
Office—47
Bojo Uranium Co., Salt Lake City, Utah
West 34th Street, New York, N. Y.
Underwriter—None.
July 8 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Pro¬
Colorado Oil & Uranuim Corp.
ceeds—For expenses incident to mining operations. Of¬
June 7 (letter of notification) 300,000 shares of common
fice—403 Felt Building, Salt Lake City, Utah.
stock (par 20 cents).
Under¬
Price—$1 per share. Proceeds—
writer—J. E. Call & Co., Salt Lake City, Utah.
For oil and mining activities.
Office — 350 Equitable
&
Stacy
Porter,
.
May 27 (letter of notification) 3,000.000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University
April 21 filed 2,960,000 shares of common
cent), of which 2,500,000 shares are
Denver, Colo.
Cortez Uranium & Mining Co.,
Inc., Montrose, Colo.
Uranium,
Underwriters—Dillon, Read & Co. Inc. and Riter
Co., both of New York.
Corpus Christ! Refining Co.
Sept. 2 filed 500,000 shares of common stock (par 10
cents). Price—At the market. Proceeds—To a selling
stockholder. Office—Corpus Christi, Texas. Underwriter
Aug. 24 filed 400,000 shares of common stock (par 10
cents).
Price—$1.25 per share.
Proceeds—To repay
short-term obligations,
etc. and for working capital.
Underwriter — Mountain States Securities Co., Denver,
Colohoma
-
For mining operations.
Offices — 738 Majestic Bldg.,.
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.
Colo.
Colo.; and Joseph McManus & Co.,
'
Cordillera Mining Co.,
Co., Philadelphia, Pa.
Clad-Rex Steel Co., Denver,
city.
June 8 (letter of notification) 2,995,000 shares of common
stock.
Price—At par (10 cents per share). Proceeds—
(letter of notification) 120,000
licly. Price—50 cents per share.
Corp., same city.
gram.
(ID/3)
shares of common;
stock (par 25 cents). Price—$2.50 per share. Proceeds—
For equipment and workmg capital. Underwriter—Bar¬
rett Herrick & Co., Inc., New York.
(Victor V.)
Clad
June 17
Underwriter—Empire Securities
City, Utah.
same
Copperweld Steel Co. (10/10)
Sept. 20 filed 230,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—From
sale of this stock, together with $5,000,000 to be bor¬
rowed privately and retained earnings, will be used to
finance a $12,000,000 modernization and expansion pro¬
Cisco Uranium Corp.,
Co., New York.
&
Corp.,
Co., same address.
Investment
Underwriter—Jay W. Kaufmann
Road, New York City.
votlhg common stock, class B (par 10
to be offered in units of two class A and one
(Walld6e P.), Florence, S. C.
^ Barnes
Sept.
Salt Lake
cents)
class B
share. Price—$5 per unit. Proceeds—For general work¬
ing capital.
Office—505 National Bank of Commerce
Building, Charleston, W. Va.
Underwriter—Crichton
shares of
51
Dome Uranium Mines,
-
Corp., same city.
Inc., Denver, Colo.
(letter of notification) 1,300,000 shares of com¬
cent). Price 20 cents per share. Pro¬
ceeds
For expenses incident to mining operations.
Office—352 Colorado National Bldg., Denver, Colo. Un¬
derwriters—R. L. Hughes & Co., Denver, Colo, and G.
July 12
mon
stock (par one
—
Caribou Ranch Cdrp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc. Underwriter—Mountain States Securities, Inc., Den¬
ver, Colo.
Price—$4 per share.
Cedar Springs Uranium Co., Moab, Utah
June 8 (letter of notification) 300,000 shares of common
stock
(par five cents).
For mining expenses.
ment
Price—$1 per share. Proceeds—
Underwriter—Universal Invest¬
Corp., Washington, D. C.
Central
Maine
Power Co.
(10/6)
Sept. 16 filed 505,719 shares of common stock (par $10)
to be offered for subscription by the holders of common
stock and 6% preferred stock of record Sept. 30 at the
rate
of
one
share of
new
shares
common
held
stock for each 6%
Oct.
and
common
one
stock
share
of
for
new
each
five
common
preferred share held; rights to expire
19.
Employees will have the right to subscribe
up to 20,000 of the unsubscribed portion.
Price—
To be supplied by amendment. Proceeds—For construc¬
tion program. Underwriters — Harriman Ripley & Co.
Inc.; The First Boston Corp.; and Coffin & Burr, Inc.
on
for
Chaffin
Uranium Corp.,
Salt Lake City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
share).
Proceeds — For expenses incident to mining
activities.
Utah.
Office—810 Deseret Building, Salt Lake City,
Securities Co., same City.
Underwriter—Utah
Charleston
Aug.
1
voting
Parking Service, Inc..
notification) 120,000 shares of non¬
stock, class A—(par 50 cents) and 60,000
(letter of
common
Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses. Office—326 Wiggett Bldg.,
Coeur
Underwriter—M. A. Cleek, Spo¬
d'Alene, Idaho.
kane, Wash.
Conlon-Moore Corp., Cicero,
III.
of first mortgage
(secured) 5% sinking fund bonds, series A, dated Oct. 1,
1955, to mature Oct. 1, 1967. Price — $100 per bond.
Proceeds—To redeem outstanding first mortgage sinking
fund bonds.
Office—1806 South 52nd Ave., Cicero, 111.
Underwriter—Illinois Securities Co., Joliet, 111.
Continental
Production
Corp.
filed $8,700,000 of 15-year 5V2%- income de¬
bentures due Sept. 1, 1970 and 870,000 shares of common
29
stock
(par
debentures
10
and
cents)
five
to be offered
shares
of stock.
in units of $50 of
Price—$50.50
per
acquisition of production payments.
Office—Las Vegas, Nev.
Underwriter—First California
Co., Inc., San Francisco, Calif.
unit.
Proceeds—For
Cook Industries,
Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which 107,915 shares
are to be sold
by company and 92,084 shares by a selling stockholder.
Proceeds—For general corporate
Underwriter—Central Securities Co., Dallas,
Price—$1.50 per share.
purposes.
Texas.
Copper Blossom Uranium & Mining Co.
notification) 5,000,000 shares of capital
cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—65 East 4th South,
June 24 (letter of
stock
(par
one
Cheyenne, Wyo.
Chemical
Dow
Co.,
Midland,
Mich.
Aug. 5 filled 200,000 shares of common stock
(par $5)
being offered to employees of company and certain of
its subsidiaries and associated companies. Subscriptions
Aug. 29 (letter of notification) $300,000
Aug.
W. Allen & Co.,
Sept. 6 through Sept. 30. Price—
share. Proceeds—For general corporate pur¬
Underwriter—None.
will be accepted from
$47
per
poses.
★ Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable
common
stock.
Price—At par
(one cent per
incident to mining
activities.
Office—214 East 5th South, Salt Lake City,
Utah.
Underwriter—Valley State Brokerage, Inc., Las
Vegas, Nev.
share).
Proceeds
—
For
expenses
★ Eastern Life Insurance Co. of New York
Sept. 20 (letter of notification) 5,239 shares of common
stock (par $5.50) to be offered for subscription by stock¬
holders of record Oct. 1, 1955 at rate of one new share
for each 10 shares held; rights to expire on Nov. 15, 1955.
Price—$35.50
per
share.
Proceeds—For
expansion
and
Office—386 Fourth Avenue, New York
Underwriter—None.
working capital.
16, N. Y.
★ El Dorado Mining Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 1,500,000 shares of non¬
assessable capital stock (par one cent). Price — Two
cents
Salt
per
Lake
share. Proceeds — To Van Blerkom & Co.,
City, Utah.
Office—Judge Bldg., Salt Lake
City, Utah.
Underwriter—None.
.Volume 182
Number 5468
^Empire Southern Gas
Aug. 4
stock
mon
..
Co., Fort Worth, Texas
each
16
shares
held
(with
scription privilege); rights to expire
on
an
oversub¬
Oct. 3.
Price—
f~A.Per share.
Proceeds—For construction of pipeline.
Office —2509
West Berry
Street, Fort Worth, Texas.
Underwriter—None.
Erie County Investment Co., Sandusky, Ohio
.
Aug. 10
(letter of notification) 7,500 shares of cumula¬
tive preferred stock
(par $20) and 7,500 shares of com¬
mon stock
(par $10), to be offered in units of one share
of each.
Price—$35 per unit.
Proceeds—For working
capital to finance general expansion.
Office—169 East
Washington Row, Sandusky, Ohio. Underwriter
Cleveland, Ohio.
—
The
First Cleveland Corp.,
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
ptock (par 50 cents). Price—$1 per share.
Proceeds—
For
mining
Salt
Lake
Office—2320 South Main Street,
expenses.
City, Utah. Underwriter
Cafarelli Co., Las
Vegas, Nev.
—
Taylor.
Eliason,
Farm
Family Mutual Insurance Co., Albany, N. Y.
$1,500,000 of 5% debentures to be offered
June 28 filed
directly
to members of the American Farm Bureau
Federation and to State Farm Bureau Federations and
local organization. Price—At 100% of
principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
other state laws.
Underwriter—None.
•
Food Fair Properties, Inc.
Aug. 17 filled $7,691,250 of 20-year debentures due Sept.
1, 1975, and an aggregate of 2,342,075 shares of common
Etock
(par one cent), of which the deebntures and
1,692,075 shares of stock are being offered for subscrip¬
tion
by common stockholders of Food Fair Stores, Inc.
of record Sept. 13 on the basis of
$50 of debentures and
11 shares of stock for each 20 shares of Food Fair Stores
—Shaiman & Co., Denver,
Inc., New York
Aug. 23 filed 200,000 shares of capital stock
Gob
Shops of America, Inc.
July 27 (letter of notification) 99,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For gen¬
corporate purposes. Office—Pawtucket, R. I.
derwriter—Weill, Blauner & Co., Inc., New York.
foreign securities of fche free world out¬
side of the United States. Underwriter—I. I. I. Securi¬
Un¬
ties
Utah.
Underwriter—United
der, Peabody & Co., New York.
Interstate Amiesite Corp.
.
(two cents per share).
Proceeds
—For mining expenses. Office—E-17 Army Way, Ogden,
par
Intermountain
Brokerage
Corp., Ogden, Utah.
Hawk Lake Uranium Corp.
April 12 filed 200,000 shares of common stock (par? 10
cents). Price—$1.50 per share. Proceeds — For mining
expenses, etc.
Underwriter—DoVbs & Co., N**w York
City, will act as agents.
Hilo
Electric
Light Co., Ltd., Hilo, Hawaii
Aug. 1 filed 25,000 shares of common stock being offered
for subscription by stockholders of record Sept. 5 on the
basis of one new share for each five shares; unsubscribed
shares
to
be
offered
first
to
held; rights to expire on Oct. 3, 1955.
The remaining 650,000 shares of common stock have
been placed privately. Price—$50
per unit; and $1 each
for the 650,000 shares.
Proceeds
To purchase from
Food
Underwriter—None.
stock
—
Fair
ments
Stores
thereon.
two
tracts
of
Underwriter
—
land
and
for
improve¬
Eastman, Dillon & Co.,
New York.
Foremost
Dairies, Inc.
Aug. 18 filed 202,925 shares of common stock (par $2)
to be offered in exchange for
43,807 shares of second
preferred and 3,349 shares of common stock of Phila¬
delphia Dairy Products Co., Inc., on the basis of 4^4
shares of Foremost
ferred
five
and
Philadelphia
one
30.
share
for each Philadelphia pre¬
shares of Foremost common for
common
common share.
Offer to
expire
on
Sept.
Underwriter—None.
Fort
Pitt
Packaging International, Inc.
(10/17)
stock (par 10C),
June 30 filed 300,000 shares of common
of which 250,000 shares of for account of
company and
50,000 shares of five selling stockholders.
ghare.
of
Proceeds—For
"Totosave"
system;
Ray"
Price—$3
infra-red space
Underwriter—Barrett Herrick & Co., Inc., New York.
Fowler
Telephone Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial
operation.
Underwriter
—
Wachob-Bender
Corp..
Omaha, Neb.
Freedom
Insurance
Co.,
Acceptance Corp., Salt Lake City, Utah
Sept. 1 (letter of notification) $300,000 of 25-year 6%
junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of $1,000, $500 and $100). Pro¬
ceeds—For working capital.
Office—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.
Home Oil
Co., Ltd., Calgary, Canada
Sept. 26 filed 1,500,000 shares of class A stock and 3,793,shares of class B stock, which are to be offered in
exchange for Federated Petroleums, Ltd. common stock
231
on
the
basis
of
one
share
of
either
class
A
or
class
B
stock in exchange for each two Federated shares. Stock¬
holders will vote Dec. 6 on approving acquisition of
assets of Federated.
ic Houdry Process Corp. (10/20-24)
Sept. 22 filed 40,000 shares of capital stock (par $10).
Price—To be supplied by amendment.
Proceeds — To
selling stockholder. Underwriter—Paine, Webber, Jack¬
son & Curtis, Boston, Mass., and New York, N. Y.
Public Service Corp.
Housatonic
Berkeley, Calif.
Price—$22
stock
share.
Business—All insurance coverages, except, life, title and
mon
mortgage.
new
Office—2054
University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
company by Uni-Insurance Service Corp.
Fremont Uranium
Co., Salt Lake City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of
mon
stock.
Price—At
par
(one cent
per
share).
com¬
Pro¬
ceeds—For mining expenses. Office—515 Deseret
Bldg.,
Salt Lake City, Utah. Underwriter — Moab Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
Gallina Mountain Uranium
Corp.
July 29 (letter of notification) 500,000 shares of common
stock (par one cent). Price—An aggregate of $50,000.
Proceeds—For mining expenses. Office—82 Beaver St.,
New
York.
same
address.
Gas
Underwriter
—
Prudential
Securities
Corp.,
being offered for subscription by com¬
stockholders of record Aug. 23 on the basis of one
(par $15)
share
for
each 33
Hills
shares held;
rights to expire on
Sept. 26.
Price—$22 per share.
Proceeds—For con¬
struction expenditures.
Office—33 Elizabeth St., Derby,
Underwriter—None.
Conn.
6
•
Household
Finance
Corp.
Sept. 9 filed 341,380 shares of common stock
($9 stated
value) to be offered for subscription by common stock¬
holders of records Sept. 30, 1955 on the basis of one new
share for each 20 shares held; rights to expire on Oct. 17.
supplied by amendment. Proceeds—To re¬
Corp. and
Price—To be
duce bank loans. Underwriters—Lee Higginson
White,
Weld
&
Co.,
Uranium
Hunt
both
111.
Corp.,
of New
Green
York; and William
River,
Utah
Proceeds—For oil
ceeds—For
•
General
Guaranty
Insurance
Co.
Aug. 26 (letter of notification) 50,000 shares of common
stock
(par $2.50)
being offered for subscription by
stockholders of record Aug. 25, on the basis of one new
share for each two shares held (with an oversubscrip¬
tion
per
privilege); rights to expire on Oct. 15. Price—$6
share. Proceeds—To increase capital and paid-in
surplus.
Fla.
Office—130 Park Avenue, North, Winter Park,
Underwriters
Security Associates, Inc., Winter
Park, Fla.; Grimm & Co., New York City; Beil & Hough,
Inc., St. Petersburg, Fla.; and First Florida Investors,
Inc., Orlando, Fla.
—
150,000 shares of common
Price—$2 per share. Proceeds—-To
pictures for television and theatrical
Office — 30 Park Ave., New York, N. Y.
Sept. 3 (letter of notification)
stock (par 10 cents).
motion
produce
exhibition.
Underwriter—Baruch Bro¬
George Jessel is President.
thers & Co., Inc.,
New York.
Jurassic Minerals, Inc.,
Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of nom-r
assessable common stock (par one cent). Price—10 ceptv
per
Proceeds—For expenses incident to mining
326 West Montezuma St., Cortee,
Underwriter — Bay Securities Corp., New York,
share.
Office
activities.
Colo.
—
incident to mining activities. Un¬
Elmer K. Aagaard, 323 Newhouse Bldg.,
expenses
derwriter
—
Salt Lake
City, Utah.
Monument
Indian
Uranium
Mining
Corp.
3,000,000 shares of com¬
cent). Price—10 cents per share.
incident to mining activities.
Office—205 Byington Building, Reno, Nev. Underwriter
—Richard L. Dineley, same address.
Sept. 6
mon
(letter of notification)
stock
Proceeds
—
(par
For
Industrial
one
expenses
Hardware Mfg. Co.
(amendment) $1,500,000 of 5% debentures duf
1975 and 300,000 shares of common stock (par 50 cents),
of which 85,000 shares are to be sold to Seymour and
Bernard Offerman at $5 per share.
Price—To be sup¬
May 12
Uranium Corp.,
Kachina
Reno, Nev.
May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceed!
—For mining expenses. Office—206 N. Virginia St., Remv
Nev. Underwriter—Whitney, Cranmer & Schulder, Inc^.
Denver. Colo.
Keeling Oil & Uranium Corp.
1,000,000 shares of com¬
share. Proceeds—For
incident to mining activities. Underwriter —
(letter of notification)
July 29
expenses
cents
Price—30
stock.
mon
per
Colo.
Securities Investment Co., Denver,
•
Kidde
& Co., Inc.
(Walter)
$2.50),
record
Sept. 20, 1955, at the rate of one new share for each
eight shares held; rights to expire on Oct. 13. Price—
$16 per share. Proceeds—For working capital and to
Sept. 7 filed 53,700 shares of common stock (par
being offered for subscription by stockholders of
Office—Belleville, N. J. Under¬
& Co., New York, N. Y.
reduce short-term debt.
writer—Carl M. Loeb, Rhoades
Kirby Oil & Gas Co.
July 8 filed 200,000 shares of common stock
of which 100,000 shares are for the account of
pany
and 100,000 shares for the
(par $!)>_
the com¬
account of the Murchl-
son-Richardson financial interests
of Texas.
Price—To
supplied by amendment.
Proceeds—To retire out¬
standing bank loans and for exploration of oil and gaa
leases. Underwriters—Allen & Co., New York: and Raube
Pierce
Co.,
&
Texas.
Dallas,
Offering
—
Post¬
poned indefinitely.
Macedon, N. Y.
Kordite Corp.,
Sept. 21 filed 130,000 shares of common
stock (par $1),
shares are to be offered by the company
and 50,000 shares by Richard M. and Howard J. Samuels,
President and Vice-President, respectively.
Price—To
of which 80,000
supplied
Proceeds—To finance de*-
by amendment.
velopment of business and for general corporate pur¬
poses.
Underwriter — George D. B. Bonbright & Co.,
Rochester, N. Y.
Lamson
&
Sessions
Co., Cleveland,
O.
filed 62,410 shares of cumulative convertible
preferred stock, series A (par $50), of which 2,410 shares*
are being offered
to holders of outstanding cumulative
Aug.
(10/3)
Aug. 22 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 \cents per share). Pro¬
mining expenses. Underwriter—
Empire Securities Corp., Las Vegas, Nev. >
Jessel-Roberts Productions Corp.
•
Underwriter—None.
Street, Derby, Conn.
Mining & Oil, Inc., Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents). Price — 25 cents per share.
and
Underwriter—None.
Del.
be
^ Housatonic Public Service Corp.
Sept. 13 (letter of notification) 12,775 shares of com¬
mon stock
(par $15). Price—$20 per share. Proceeds—
For construction expenditures.
Office — 33 Elizabeth
Blair & Co., Chicago,
Aug. 1
privilege); rights to expire on Sept. 30. Proceeds—For
working capital. Business—Bituminous concrete paving
materials. Office—Delaware Trust Bldg., Wilmington 89t
scher.
Aug. 15 (letter of notification) 11,225 shares of common
per
due
Home
June 6 filed 1,000,000 shares of common stock
(par $10).
Proceeds—For capital and surplus.
19 filed $438,200 of 5V2% convertible debenture!
1965, being offered first for subscription by stock¬
holders at the rate of $100 of debentures for each 16
shares held as of "Sept. 1
(with an oversubscription
July
New York.
it Homasote Co., Trenton, N. J.
Sept. 26 (letter of notification) 30,000 shares of 5% cu¬
mulative convertible preferred
stgck^Jhrice—At par
($10 per share) and accrued dividends/lnroceeds—For
improvements and general corporate purposes.
Office
—Lower Ferry Road, Trenton, N. J.
Underwriter—W.
E. Wetzel & Co., same city.
per
working capital; for exploitation
and for marketing of "Tropicheater. Office — Pittsburgh, Pa.
Corp., 76 Beaver St., New York, N. Y.
ir International Resources Fund, Inc. (10/18)
Sept. 23 filed 3,000,000 shares of common stock (par one
cent). Price—$5.75 per share. Proceeds — For invest¬
ments. Business—To invest in U. S. and foreign securi¬
ties in the natural resources field.
Underwriter—Kid¬
Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
Price—At
Business
—To invest in
Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.
Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.
stock.
(par $1).
Proceeds—For investment.
Price—At market.
Gulf Coast
Half Moon Uranium Corp.,
Colo.
International Investors
employees at rate of five
shares for each full year of employment; then to genera]
public; rights to expire on Oct. 10. Price—To stock¬
holders and employees, at par ($20 per share); and to
public, at prevailing market price $28 per share on Aug.
22, 1955). Proceeds — For expansion and improvement
common
•
Inland Oil & Uranium Corp., Denver, Colo.
1 July 18 (letter of notification) 1,200,000 shares of common stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For expenses incident to oil and gas activities. •
Office—3975 East 58th Ave., Denver, Colo. Underwriter 1
Glenwood Mining & Uranium Corp.
July 29 (letter of notification) 1,000,000 shares of com¬
mon stock.
Price—30 cents per share. Proceeds — For
expenses incident to mining activities.
Underwriter —
Peters, Writer & Christensen, Denver, Colo.
eral
-
plied by amendment. Proceeds—To purchase Hugh JL
Eby Co. and Wirt Co. Underwriters—Hallowell, suter
berger & Co., Philadelphia; and Baruch Brothers & Gfc#
Inc. and Weill, Blauner & Co., Inc., both of New York.
Gibraltar Uranium Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Connell, Inc., Denver, Colo.
*
53
(1325)
The Commercial and Financial Chronicle
(letter of notification) 12,000 shares of common
(par $5) being offered for subscription by com¬
stockholders of record Aug. 19 on the basis of one
share for
new
.
29
preferred stock on a share-for-share exchange and 60,006
shares were offered publicly on Sept. 20. The exchange
offer
will expire
Sept. 30. Price—$52 per share ard
Proceeds—Together with other funds,
on
accrued dividends.
plants in Brooklyn, Ohio, and in
Underwriter — McDonald & Co.,
for construction of new
Bedford
Park,
111.
Cleveland, Ohio.
Landa Oil Co.,
.
..
r
Dallas, Texas
Aug. 19 (letter of notification) 70,000 shares of common
stock (par 10 cents) to be first offered for subscription
by
stockholders.
Price
—
To stockholders, $3.50 per
share. Proceeds—For ex¬
share; and to public $4.25 per
incident to oil and gas activities.
North Central Expressway, Dallas 6, Tex.
Central Securities Co., Dallas, Tex.
penses
Lander
Office —- 5738
Underwriter-
Valley Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of
mon stock
(par two cents).
Price—10 cents per
com¬
share.
Proceeds—For expenses incident to mining activities.
Office—c/o Warren E. Morgan, President, 1705 East First
South, Salt Lake City, Utah.
Underwriter—Empire Se^
curities Corp., Las
Vegas, Nev.
Continued
on page
54
54
The Commercial and Financial Chronicle
'
(1326)
Continued from page
Merritt-Chapman & Scott Corp., New York
28 filed
314,718 shares of common stock
(par
$12.50) being offered in exchange as follows: 102,250
53
Leborn Oil & Uranium Co.
June 8 (letter of notification) 6,000,000 shares of capital
Price—At par (five cents per share). Proceeds—
124% South Main St.,
Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
For mining expenses. Office
Newcastle, Wyo. Underwriter
LeCuno Oil
—
—
pected in October.
•
fered
publicly; 60,000 shares of common are to be of¬
fered for subscription by officers, directors, employees
and agents of this corporation, Atlantic Life Insurance
Co., The Lamar Life Insurance Co., and others; and
18,656 common shares and the 4,081 preferred shares
are
to be offered by company to holders of common
and
shares
14
share of Atlantic
the basis of 64 shares of
on
of
preferred
common
plus $15.
com¬
outstanding
Price—For the 400,-
for
each
000 shares of common stock to be sold to public and
employees, will be supplied by amendment. Proceeds—
To selling
stockholders.
Underwriters—Equitable Se¬
curities
Corp., Nashville, Tenn., and Rauscher, Pierce &
Co., Inc., Dallas, Texas.
if Life Underwriters Insurance Co., Shreveport, La.
Sept. 26 filed 100,006 shares of common stock (par 25
cents) to be offered for subscription by present stock¬
holders of record July 21, 1955 on the basis of one new
share for each four shares held; rights to expire 45 days
from the commencement of the
offering, after which
shares
public. Price—$8.75 per
share to stockholders; $10 per share to public. Proceeds
—For expansion and working capital.
Underwriter—
None.
• Link-Belt
Co., Chicago, III.
Aug. 12 filed 134,433 shares of common stock
being offered in exchange for the .common
Syntron Co. at rate of 5.4 shares of Link-Belt
each Syntron share. The
exchange will become
(par $5)
stock
of
if 95% of the 24,895 shares of
outstanding Syntron stock
are deposited for
exchange; but Link-Belt reserves the
right to declare the exchange effective if not less than
of
Syntron
Little
Mac
shares
are
Uranium
deposited
so
in
exchange.
Co.
Sept. 12 (letter of notification) 3,000,000 shares of capi¬
tal stock.
—For
Price—At par
mining
expenses.
Lake City, Utah.
(10 cents per share). Proceeds
Office—440 West 3rd North, Salt
Underwriter—Skyline Securities, Inc.,
Denver, Colo.
if Louisville Gas & Electric Co. Ky. (10/13)
Sept. 22 filed 160,000 shares of common stock (no par)
to be offered for subscription
by common stockholders
of record
Oct.
10 shares
held; rights to expire on Nov. 1. Price—To be
by amendment. Proceeds
For
construction
supplied
one
new
share for each
—
Underwriters—Lehman Brothers
Co., Inc., New York.
program.
and
Blyth &
Lyman-Farnsworth Corp.
May 6 (letter of notification as amended) 3,000,000 shares
of capital stock (par one
cent). Price—10 cents per share.
Proceeds—For mining operations. Office—201 No. Main
St., Salt Lake City, Utah. Underwriter—Pioneer Invest¬
ments, Las Vegas, Nev.
it Marionflex
Realty Co.
Sept. 22 (letter of notification) 2,500 shares of com¬
mon stock
(no par). Price—$100 per share. Proceeds—
Of this sale together, with
proceeds of a mortgage loan
of $275,000, to buy
approximately five acres of land and
completed
structures.
Montclair, N. J.
•
Market
Sept. 21
Office—131
Highland
Avenue
Underwriter—None.
Basket, Los Angeles, Calif.
(10/12)
filed
75,940 shares of common stock
(par 50
cents). Price—To be supplied by amendment.
Proceeds
—For new equipment and other
general corporate
pur¬
poses.
liam
Underwriters—Bateman,
R.
Staats
Eichler & Co. and Wil¬
&
Co., both of Los Angeles, Calif.* and
First California Co., San
Francisco, Calif.
it Mascot Film Productions
Sept. 15 (letter of notification) 250,000 shares of
common
non-assessable stock.
ceeds—For
provements;
der
D.
man
Price—At par ($1 per
share).
Pro¬
pre-incorporation, etc., rent; leasehold
and working
capital.
im¬
Office—c/o Alexan¬
Amatuzio, President, 15137 Hartsook St., Sher¬
Underwriter—None.
Oaks. Calif.
Mascot
Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares
stock
(par
35
Proceeus —For
cents).
Price
expenses
62%
incident to
—
cents
of
common
per
share.
mining activities.
capital and dther corporate
purposes.
1639
Broadway New York, N. Y.
Co., New York.
Office—
Underwriter—Israel
15
—
Bliedung, Washington, D. C.
Carl
J.
Sept. 16
Ten¬
basis;
on
Proceeds—For
Underwriter—None.
Sept. 30.
Mesa-Loma
Mining Corp., Fort Collins, Colo.
(letter of notification) 2,955,000 shares of com¬
stock (par one cent). Price — 10 cents per share.
July 13
mon
Proceeds—For
incident
Proceeds—For
construction
of
for research and
capital. Underwriter—
plant;
Mitchell
Mining Co., Inc., Mount Vernon, Wash.
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.
Moab
Treasure
6,000,000 shares of
Price—Five cents per share. Proceeds
com¬
—
incident to mining activities.
expenses
Utah Uranium
For
Underwriter
Brokers, Salt Lake City, Utah.
Uranium
&
—
New
Mexico Oil
July 27
chase
contract; to use $100,000 each to purchase mining
equipment, to pay for development and driving drift and
for exploratory drilling; and the remainder for working
capital, acquisition of additional properties, and unfore¬
seen
contingencies. Underwriter—Carr & Co., Detroit,
Mich.
Proceeds
Inc.
6,000,000 shares of com¬
(five cents per share). Pro¬
ceeds—For mining expenses.
Office — 706 Newhouse
Bldg., Salt Lake City, Utah.
Underwriter—Mid-Con¬
tinent Securities, Inc.. same city.
Price—At par
Monte Cristo Uranium Corp.
Aug. 19 filled 2,000,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For purchase of
certain claims designated "Lower Claims
Group." Office
—Salt Lake City, Utah. Underwriter—None.
Morning Sun Uranium, Inc., Spokane, Wash.
14 (letter of notification)
700,000 shares of com¬
June
stock (par 10 cents). Price
Proceeds—For mining expenses.
—
25 cents per share.
Office— 415 Paulsen
Underwriter—Pennaluna & Co.,
Bldg., Spokane, Wash.
same city.
.
Mortgage Associates, Inc., Philadelphia, Pa.
June
Underwriter—M.
J.
& Gas
Co.
(par
2,500,000 shares of com¬
cent). Price—Three cents per share.
one
For general corporate purposes. Office —
Bethesda, Md. Underwriter—Lewellen-Bybee Co., Wash¬
ington, D. C.
—
if New York State Electric & Gas Corp. (19/19)
21 filed $15,000,000 of first mortgage bonds due
Sept. 1, 1985. Proceeds—To reduce bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
&
Co.; Harriman, Ripley & Co. Inc.; The First Boston
Corp. and Glore, Forgan & Co. (jointly); Blyth & Co.,
Inc. and Smith, Barney & Co. (jointly). Bids—Expected
to be received up to 11 a.m. (EDT) on Oct. 19.
if New York State Electric & Gas Corp. (10/19)
Sept. 28 filed 303,407 shares of common stock (no par)
be offered for subscription by common stockholders
the
basis of
one
7
(letter of notification) 20,000 shares of 60-cent
preferred stock (par $5) and 20,000 shares
of common stock (par 10
cents). Price—For preferred,
$10 per share; and for common, $2.50 per share. Proceeds
on
new
share
Nov. 3.
amendment.
Proceeds
construction
program.
for
Price
To
each
—
10
shares
held;
To be supplied by
bank loans and for
Underwriters—The First Boston
—
repay
Corp.; Lehman Brothers; Wertheim & Co.; and Merrill
Lynch, Pierce, Fenner & Beane.
Nortex Oil
&
Gas
Corp., Dallas
Sept. 16 filed 200,000 shares of
(10/17-21)
stock (par $1).
supplied by amendment.
Proceeds—To
purchase certain oil and gas properties and leasehold
interests; for drilling and development costs; to pay off
$450,000 promissory notes; and for general corporate
common
be
Underwriter—J. R. Williston & Co., New York.
purposes.
ir Ohio Valley Airways, Inc., Cincinnati, Ohio
Sept. 13 (letter of notification) 70,000 shares of class
A common stock (par $1).
Price—$3 per share. Pro¬
ceeds—To purchase and equip three helicopters.
Un¬
derwriter—Westheimer & Co., Cincinnati, Ohio.
Uranium Mines,
(letter of notification)
mon
Un¬
(letter of notification)
stock
mon
on
Oil
Monogram Uranium & Oil Co.
Aug. 31 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share. Proceeds — To make payment of
$675,000 to Four Corners Uranium Corp. under a pur¬
stock.
Nev.
Sabbath Co.,
Price—To
mon
share.
activities.
to
Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.
Monte Carlo
Winnemucca,
Office—Carrizozo, N. M.
Washington, D. C.
penses.
rights to expire
Mobile
Building,
per
Corp.
(letter of notification)
stock.
mon
Uranium
cent). Price—20 cents
incident to mining
one
com-
Sept.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
July 25
1,500,000 shares of
New Mexico Copper
Corp.
^
Sept. 8 (letter of notification) $100,000 of 6% convertible
debenture bonds due Oct. 1, 1965 (to be convertible at
any time at rate of $100 of borids for 220 shares of com¬
mon stock).
Price—At par. Proceeds — For mining ex¬
Metallurgical
development; and for working
M. S. Gerber, Inc., New York.
/
Winnemucca, Nev.
expenses
Office—Professional
to
Resources, Inc., New York
Sept. 12 filed 500,000 shares of 6% non-cumulative con¬
vertible preferred stock. Price—At par ($2 per share).
Lindquist Securities,
derwriter—Shelley, Roberts & Co., Denver, Colo.
mining operations.
Office—415 Peterson St., Fort Collins, Colo. Underwriter
—Bay Securities Corp., 115 Broadway, New York, N. Y.
expenses
—
•
(letter of notification)
stock (par
mop
D^-for-l
a
basis; and 548 shares of class B common stockholders of
Co. on a 1 -for-1% basis. Offer will expire
Oasis
Uranium & Oil Corp.,
Fort Worth, Texas
June 8 (letter of notification) 265,000 shares of common
stock (par 50 cents).
Price—$1 per share. Proceeds—
For uranium and oil exploration.
Office—Fortune Arms
Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
Orange Hotel, Inc., Dallas, Texas
July 19 filed $450,000 of registered 4% sinking fund
debentures due May 1, 1985, which are to be offered
in exchange for $375,000 principal amount of registered
4% debentures and 3.750 shares of $20 par stock of
Orange Community Hotel Co. in the ratio of $120 of new
debentures for each $100 of debentures and 20 shares of
stock of the Community company/Underwriter—None.
Ottilia
Villa, Inc., Las Vegas, Nev.
notification) 3,000 shares of capital
stock.
Price—At par ($100 per share).
Proceeds—For
South 5th St., Las Vegas, Nev. Underwriter—Hennon &
Roberts, Las Vegas, Nev.
Aug.
16
(letter of
convertible
if Owens-Corning Fiberglas Corp.
Sept. 22 filed 146,570 shares of common stock (par $5)
to be offered to certain officers and employees under the
—For construction loans and
acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
company's Employee Stock Option Plan.
J.
S.
Hope
&
Mountain
Co.,
Scranton,
States
Pa.
Telephone & Telegraph
Co.
(10/1)
Sept. 7 filed 486,881 shares of capital stock (par $100),
to be offered for subscription by stockholders of record
Sept. 27, 1955 on the basis of one new share for each five
held; rights to expire on Oct. 28. Price—At par ($100
per share.
Proceeds — Toward repayment of advances
from American
eral
Telephone & Telegraph Co. and for gen¬
corporate purposes.
Underwriter—None.
assessable
par
common
stock
behalf of A.
on
(two cents
per
1,250,000 shares of non¬
250,000 shares of which to be
Y.
share).
Clark, President.
Proceeds—To
Price—At
mine
Underwriter—None; shares to
be offered through Lester Milerson and
Joseph H. Miller,
claims
and
directors
extract
of
-
Pacific
International
Metals
&
Uranium,
Inc.
Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—419
Judge Bldg., Salt Lake City, Utah. Underwriter—
Co., Salt Lake City, Utah.
Guss Securities
Pacific Power & Light Co.
Aug.
30
filed
1985.
Proceeds—To repay
$10,000,000
(10/4)
of first mortgage bonds due
bank loans and for construc¬
tion program.
Underwriter—To be determined by com¬
bidding.
Probable bidders—Halsey, Stuart &
Co. Inc.: Union Securities Corp. and Kidder, Peabody &
petitive
if Muddy Dyke Uranium Co.
Sept. 16 (letter of notification)
open
up
ores.
company.
Co., (jointly); Lehman Brothers, Bear, Stearns & Co. and
Salomon Bros. & Hutzler (jointly); Blvth & Co., Inc. and
White, Weld
to
noon
& Co.
(EDT)
on
(jointly).
Oct.
4
at
Bids—To be received up
Room 2033, Two Rector
St., New York 6, N. Y.
Pacific
Power &
Light Co.
(10/5)
Sept. 8 filed 30,000 shares of cumulative preferred stock
★ National Grange Fire Insurance Co., Keene, N. H.
Sept. 21 (letter of notification) 5,000 shares of common
stock (par $10), to be offered for
subscription by stock¬
(par $100) to be offered initially only in Oregon, Wash¬
ington, Wyoming, Montana and Idaho. Price—To be sup¬
holders
and
(with
on
basis of
one
new
share for each 10 shares held
oversubscription privilege).
Price—$20 per
Proceeds—For expansion. Underwriter—None. -
an
share.
Abstracts, Inc., Philadelphia, Pa.
(letter of notification)
300,000 shares of com¬
mon stock (par one
cent). Price—$1 per share. Proceeds
—For working capital, etc.
Office—825 Western Savings
Fund Bldg
Philadelphia, Pa. Underwriter
T
June
of
The Osgood
offered
Underwriter—Standard Securities
Corp., Spokane, Wash.
Medallion Pictures
Corp.
Sept. 3 (letter of notification)
300,000 shares of Class A
Stock (par 10 cents).
Price—$1 per share. Proceeds—For
&
stockholders
common
stockholders of Marion Power Shovel Co.
June 6
13 at the rate of
to
■
.Nevada Mercury
Corp.,
share-for-share
stock for
effective
<;
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common
unsold shares will be offered to
80%
on a
Products & Chemical Corp. on a 1%-for-l
on
Companies, Inc., Richmond, Va. (10/17)
Sept. 19 filed 418,656 shares of common stock (par $1)
and 4,081 shares of convertible preferred stock (par $25),
of which 340,000 shares of common stock are to be of¬
mon
Shipbuilding Corp.
53,324
Life
stock of Atlantic Life
of New York
ers
nessee
and gas and mineral activities. Underwriter—First Cali¬
fornia Co., Inc., San Francisco, Calif.
Offering—Ex¬
Ave., Provo, Utah. Underwriter
Salt Lake City, Utah.
1%-for-l basis; 127,623 shares to common stockhold¬
on
basis;
Corp., Jefferson, Texas
29 filed 450,000 shares of capital stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For payment of liabilities and expenses incident to oil
Aug.
(par one cent). Price—Five cents per share. Pro-*
ceeds—For mining expenses. Office—156 No.
University
Raynolds &
1% shares for each Devoe share;
6,621 shares to class B common stockholders of Devoe
basis of
on
Thursday, September 29,1955
.
stock
shares to class A stockholders of Devoe &
Co., Inc.
.
Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common
June
stock.
.
Natural Power
Sept.
7
(letter
assessable
share.
tivities.
Okla.
Corp. of America, Moab, Utah
of notification) 300,000 shares of
common
stock
Proceeds—For
(par
one
expenses
cent).
for
construction
program.
— To repay bank loans
Underwriters—Expected
to be local dealers.
Pacific Telephone
& Telegraph Co.
July 29 filed 1,339,196 shares of common stock (par $100)
per
being offered for subscription by preferred and common
stockholders in the ratio of one new share for each six
ac¬
shares
non¬
Price—$1
incident to
Proceeds
plied by amendment.
mining
Underwriter—Western Bond & Share Co., Tulsa,
held
as
of Aug. 31:
American Telephone
90.89%
of
Pacific's
rights to expire on Sept. 30.
& Telegraph Co., the parent, owns
outstanding
stock
and
intends
to
Volume
182
Number 5468
.
.
Subscribe for 1,199,849 of the
rroceeos—To
The Commercial and Financial Chronicle
.
new
repay bank loans.
•
shares.
Price—At par.
Underwriter—None.
3,000,000 shares of com(par two cents). Price—10 cents per share.
For mining expenses. Office
811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler &
Co., same city.
ttion
stock
—
—
Pacific Western Oil
Corp.
Sept. 9 filed 100,000 shares of common stock
(par $4.)
Price—At prevailing market
price. Proceeds—To J. Paul
Getty, President. Underwriter—None.
Panama
Minerals, Inc., S. A. (Republic
of
Panama)
June 30 filed
400,000 shares of
stock
common
(par $1).
Price—$1.25 per share. Proceeds—For mining
Office—Denver. Colo. Underwriter—None.
expenses.
Pandora Uranium Mines, Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For expenses incident to mining operations.
Office—530 Main St., Groad
Junction, Colo. Underwriter
—Columbia Securities
Co., Denver 2, Colo, and Salt
Lake City, Utah.
r
shares of preferred and one share of common
Price—$2.05 per unit. Proceeds—For working
capital, etc. Office—161 West 54th Street, New York,
N. Y.
Underwriter—Choice Securities Corp., 35 East
12th Street, New York, N. Y.
two
of
stock.
Pacific Uranium & Oil
Corp.
June 6 (letter of
notification)
Proceeds
Pelican Uranium
Corp., Salt Lake City, Utah
of common
it Rebuilding, Inc., Washington, D. C.
(letter of notification) 50,000 shares of class A
common stock
(par $1). Price—$5 per share. Proceeds
—For acquisition and rehabilitation of real
property,
working capital, etc. Office — 2430 Pennsylvania Ave.,
N. W., Washington, D. C. Underwriter—None.
(par five cents). Price—10 cents
mining expenses.
Office
ceeds— For
South,
Salt
Lake
City,
Western Brokerage
Co.,
Lake City, Utah.
r
per
—
share.
688
Pro¬
East
21st
Utah.
Underwriter
TransNew Orleans, La., and Salt
—
it Resistoflex Corp., Belleville, N. J. (10/17)
Sept. 27 filed 20,000 shares of convertible preferred stock
(par $25). Price—To be supplied by amendment. Pro¬
ceeds
For leasehold improvements,
equipment, and
other expenses in connection with the leasing of a' new
plant at Roseland, N. J. Underwriter — Bache & Co.,
New York.
Rio
(letter of notification) 2,000,000 shares of com¬
(par three cents). Price—15 cents per share.
Proceeds—For expenses incident to mining activities.
Pepsi-Cola Bottling Co. of Long Island, Inc.
Sept. 20 filed 300,000 shares of common stock (par 25
cents),
pany
of which 80,000 shares
and
220,000 shares for
Arundel, President.
ment.
are
for account of
account
Price—To
be
of
com¬
Russell
supplied
M.
by amend¬
Proceeds—To retire
indebtedness; and for general
Office—Garden City, N. Y. Under¬
corporate purposes.
writer—Johnston, Lemon & Co., Washington, D. C.
Permian Basin Uranium
Corp.
Getter of notification) 640,000 shares of common
stock.
Price—At par (10 cents per
share). Proceeds—
For mining costs.
Office—613 Simms
June 2
Building, Albu¬
N.
querque,
Mex.
Underwriter
—
Western
Securities
Corp., Salt Lake City, Utah.
Oro
Uranium
Inc.
(10/13)
Junction, Colo. Underwriter—Tellier & Co., Jersey City,
J., on a best-efforts basis. If 85% of issue is not sold,
N.
monies will be refunded.
Rochester Telephone Corp.
Sept. 14 filed 195,312 shares of
be offered
to
for
of record Oct. 6
four shares
Boston
(10/7)
common
stock
subscription by
new
(par $10)
stockholders
common
the basis of
on
one
share l for each
held; rights to expire on Oct. 24. Price—To
by amendment. Proceeds — To repay bank
construction.
new
Underwriter—The First
Corp., New York.
Barrett Herrick & Co., Inc., New York.
it Philadelphia Electric Co.
Sept. .21 filed 100,000 shares of
to
be
offered for subscription
and
annuitants
under
by
eligible
company's 1955
the
Stock Purchase Plan.
(no par)
employees
Employee
Pittman Drilling & Oil Co.,
Independence, Kan.,
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par $5) and
60,000 shates
of common stock (par 10
cents) to be offered in units oi
share
of
each.
Price—$5
per
unit.
payment of note and working capital.
zens National Bank
Bldg.,
Proceeds—For
Office—420 Citi¬
Independence, Kan. Under¬
writer—Dewitt Investment Co.,
Wilmington, Del.
-
Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment
expense. Office
—Bowie,
Md.
Underwriter—L.
L.
Hubble
&
Co., Inc.,
Baltimore, Md.
it Pryite & Co., Inc., Pomona, Calif.
Sept. 12 (letter of notification) 52,000 shares of common
stock
(par $1).
Price—$5.75 per share.
Proceeds—To
^repay bank loans and for working capital.
Business—
Manufactures electric exhaust fans; recessed
lighting fix¬
tures, etc. Underwriter—Hill Richards & Co., Los An¬
geles, Calif.
Offering—Now being made.
Public
Service
Electric
&
Gas
due
Lehman
Drexel
Brothers
&
(jointly); Morgan Stanley & Co. and
(jointly); First Boston Corp. Bids —
Co.
To be received up to 11 a.m.
of company, 80 Park Place,
(EDT) on Oct. 4 at office
Newark, N. J.
it Pyramid Electric Co.
Sept. 21 (letter of notification)
35,000 shares of com¬
be issued upon exercise of war¬
Price—$3.25 per share.
Proceeds—For general
corporate purposes. Office — 1445 Hudson
Boulevard,
mon
stock
(par $1)
North Bergen, N.
to
J.
Underwriter—None.
Radium Hill
Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock (par one cent).
Price—32 cents per share.
Pro¬
—
For
expenses
Office—Bryant
Bldg.,
incident
to
mining
operations.
Underwriters—
Montrose, Colo.
York, N. Y., and Shaiman
General Investing Corp., New
& Co., Denver, Colo.
Real
Sept.
Underwriter—Carroll, Kirchner
Denver, Colo
it Sinclair Oil Corp.
Sept. .23 filed 200,200
offered
14
Estate
Clearing House, Inc.
(letter of notilication) 270,000
cumulative preferred stock
of common stock (par five
(par $1)
and
shares
135.000
of
7%
shares
cents) to be offered in'units
t
■
to
certain
&
Collins,
Jaquith, Inc.,
/
shares
officers
of
stock, to be
employees of the
common
other
and
and of certain of its subsidiaries pursuant to
options granted on April 14, 1954, under the company's
company
amended stock purchase and
option plans.
Price—$14.25
share.
Smith-Dieterich Corp.
Sept. 15 (letter of notification) 17,355 shares of common
stock (par $2.50) to be offered for
subscription by stock¬
holders of record Sept.
14, 1955 on the basis of one new
share for each five shares held.
Price—$5.50 per share.
Proceeds—To repay certain loans and for
working capi¬
tal.
Office—50 Church St., New York, N. Y.
Under¬
writer—None.
Southeastern Fund,
Columbia, S. C.
Sept. 6 filed $300,000 of 15-year 5J/2% subordinated sink¬
ing fund debentures. Price—100% of principal amount.
Proceeds—For general operating purposes.
—Powell & Co.,
& Co., Memphis,
Sept. 6 filed
Underwriters
Fayetteville,*N. C., and Gordon Meek3
Tenn.
Fund, Columbia, S. C.
60,000 shares of
share. Proceeds
stock (par $1).
working capital.
Co., Fayetteville, N. C., and
Gordon Meeks & Co., Memphis, Tenn.
Price—$5
per
Underwriters
May 9 (letter of notification) 20,000 shares of common
(par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and
stock
Office—Northwood, Iowa. Underwriter
—None.
St. Croix Paper
Co., Boston, Mass.
Sept. 2 filed 125,714 shares of common stock (par $12.50)
being offered for subscription by common stockholders
the basis of
on
one
of Sept. 22;
share.
ance
new
share for each V/2
rights to expire
Oct. 6.
on
shares held
Price
Proceeds—Together with funds from
and
—
$29
insur¬
bank, to be used for expansion pro¬
Underwriter—Estabrook & Co., Boston and New
company
gram.
a
'York.
St. Regis Uranium Corp., Denver, Colo.
Aug. 15 (letter of notification) 1,500,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds
For expenses incident to mining activities.
Office—2285 South Jackson, Denver, Colo.
Underwriter
—
—M. J. Reiter Co., New York, N. Y.
Jacinto
San
Petroleum
Corp., Houston, Texas
common stock (par $1).
Price—$15 per share. Proceeds—For payment of short
term loans and other indebtedness; and for general cor¬
Sept. 20 filed 500,000 shares of
Underwriter—None, sales to be made
through officers of the company.
porate purposes.
San Juan Uranium
Exploration, Inc.
Aug. 19 (letter of notification) 925,000 shares of non¬
assessable common stock (par one cent). Price—12 cents
per share.
Proceeds—For expenses incident to mining
activities. Office
718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
—
Sandia Mining & Development Corp.
Powell
—
common
For
—
&
(par one cent). Price—10 cents per share. Pro¬
For mining expenses.
Office — Simms Bldg.,
ceeds
—
N.
M.
Underwriter—Mid-America Secu¬
Santa Fe Uranium & Oil Co.,
(10/17)
filed
$30,000,000 40-year debentures due Oct.
Proceeds — To repay advances from parent,
American Telephone & Telegraph
Co., and for general
-corporate purposes. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
15, 1995.
&
Co.
Inc.;
Inc.
to be offered for
Sept. 28,
—
For
investment.
Office
it Scudder, Stevens & Clark Fund, Inc.,
Boston, Mass.
Sept. 26 filed 150,000 shares of capital stock.
Office
•
Proceeds
Square,
Servo
—
For
Boston,
investment.
—
10 Post
Office
Price—At
—
10 Post
Mass.
Corp. of America (10/5)
$600,000 shares of 6% convertible sub¬
ordinated debentures due 1975 (initially convertible into
common
stock at $6 per share) and 110,000 shares of
common stock (par $1), of which 30,000 shares are to be
offered for the account of Henry Blackstone, President.
Price
To be supplied by amendment. Proceeds—For
plant expansion, working capital, etc.
Underwriter—
Ira Haupt & Co., New York.
Aug.
26
—
filed
held.
Price—$33
per
share.
Proceeds
—To repay advances from American
Telephone & Tele¬
graph Co. (owner of 24.01% of the outstanding stock).
Underwriter—None.
Bids—In connection with the above
offering, American Telephone & Telegraph Co. is invit¬
ing bids to be received on Oct. 6 for the purchase from
it
the
of
1,173,696 rights to purchase 130,410 shares of
New England that it will receive.
Probable bidders: Blyth & Co. Inc.; White, Weld &
Co.;
Putnam & Co.; The First Boston
Corp.; Salomon Bros.
stock
of
Southern
&
Hutzler.
•
Southwestern
Financial Corp.
(10/3-14)
770,000 shares of common stock (par 10
cents), to be offered for subscription by stockholders at
Sept. 6
of
rate
filed
two
shares
for
each
share held (with an
Price—To be supplied by
amendment.
Proceeds—For purchase of machinery and
equipment; and for the working capital and general
new
oversubscription privilege).
corporate purposes. Office—Dallas, Texas. Underwriter
—Rauscher, Pierce & Co., Dallas, Texas; and Russ & Co.,
San Antonio, Texas. Offering—Expected within the first
October.
Southwestern
Investment Co., Amarillo, Texas
Aug. 22 filed $2,500,000 of 5%
sinking fund capital de¬
bentures, series A, dated Sept. 1, 1955. Holders of $1,000,outstanding 5% and 5%% capital debentures will
be offered the opportunity to exchange their debentures
000
the
amount.
new
debentures.
Proceeds—To
increase
Price
retire
working capital.
Lincoln, Neb.
—100%
of
principal
unexchanged
debentures
Underwriter—The First
Spirit Mountain Uranium, Inc., Cody, Wyo.
Square, Boston, Mass.
market.
then
Underwriter—Co¬
it Scudder, Stevens & Clark Common Stock Fund,
Inc., Boston, Mass.
Sept. 26 filed 125,000 shares of capital stock. Price—At
Proceeds
subscription by stockholders of record
in the ratio of one new share for each
1955
nine shares
and
Office
Bids—Expected to
it Southern New England Telephone Co. (10/6)
Sept. 21 filed 543,209 shares of capital stock (par $25)
Trust Co. of
market.
Co.
—
for
Office—416 Indepen¬
&
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter
Franklin Securities Co.,
Atlanta, Ga.
Proceeds—For mining operations.
Bldg., Colorado Springs, Colo.
lumbia Securities Co., Denver, Colo.
Stanley
Oct. 17.
it Southern Mining & Milling Co., Atlanta, Ga.
Sept. 14 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For expenses incident to
mining activities. Offices—.
May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
dence
Morgan
on
two weeks of
SeptJ) (letter of notification) 3,000,000 shares of capital
stock
Co.
be received
Saint Anne's Oil Production Co.
rants.
ceeds
Colo.
Sept. 28
1975.
Proceeds—For repayment of bank loans. Underwriter—
To be determined by competitive
bidding. Probable bidbers: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and
Co.
Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents).
Price—At market (total not to
exceed $150,000). Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.
rities, Inc. of Utah, Salt Lake City, Utah.
(10/4)
bonds
Uranium
it Southern Bell Telephone & Telegraph
Albuquerque,
Co.
$35,000,000 of debenture
com¬
per
(letter of notification) 3,000,000 shares of com¬
(par one cent). Price —10 cents per share).
Proceeds—For mining operations. Office—Fort
Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.
'
Sept. 7 filed
cents
ca
per
stock
Price—25
stock
Southeastern
Mining Corp., Salt Lake City, Utah
July 15 (letter of notification) 6,000,000 shares of cap¬
ital stock (par one cent).
Price—Five cents per share.
Proceeds—For
mining operations.
Office—530 Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬
cent).
Silvaire Aircraft &
mon
Rocket
as
common
one
June 17
per
Mines,
Aug. 15 filed 3,000,000 shares of common stock (par one
cent).
Price—15 cents per share.
Proceeds—For ex¬
penses incident to
mining operations.
Office—Grand
related activities.
Pelaca Mining Co., Santa
Fe, N. Mex.
Aug. 25 filed 450,000 shares of common stock (par 10
cents). Price—$1.75 per share. Proceeds—For repayment
of loan and liquidation of
purchase obligations; to buy
equipment; and for working capital.
Underwriter—
(par
55
share.
Proceeds—For mining expenses. Office — 6
Kirby St.,
Moab, Utah. Underwriter—Skyline Securities Inc., Den¬
ver, Colo.
stock
Office—206 N. Virginia Street,
Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
one
de
loans and for
Aug. 4
mon
stock
mon
—
be supplied
Penn-Utah Uranium, Inc., Reno, Nev.
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of
June 20
Sept. 19
May 25 (letter of notification) 300,000 shares
stock
(1327)
J^uly 29 (letter of notification) 25,200,000 shares of
mon
com¬
stock. Price—At par (one cent per share). Proceeds
—For
incident
mining activities. Office—
1507-8th Street, Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.
expenses
to
• Splendora Film
Corp., New York (10/11)
July 27 filed 1,200,000 shares of common stock (par 10
cents). Price—50 cents per share. Proceeds—For equip¬
ment and accessories; for financing film productions;
and
for
Co.,
Inc., and McGrath Securities
working capital.
Underwriters—J.
H.
Lederer
both of
Corp.,
New
York.
it Stillman Uranium, Inc., Hayward, Calif.
16 (letter of notification) 600,000 shares of non¬
assessable class A common stock. Price
At par (25
cents per share).
Proceeds — For expenses incident to
mining operations. Office—1011 McKeever Court, Hayward, Calif. Underwriter—None.
Sept.
—
Continued
on
page
56
56
The Commercial and Financial Chronicle
(1328)
Continued
from
Texas Toy Co., Houston, Texas
July 8 (letter of notification) 300,000 shares of common
Btock (par 25 cents).
Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;
expansion and working capital. Office—2514 McKinney
Ave., Houston, Texas. Underwriter—Ray Johnson & Co.,
Inc., Houston.
55
page
it Style-Rite Homes Corp., Columbus, Ohio
Sept. 15 (letter of notification) 300,000 shares of 6%
cumulative participating convertible class A stock (150,shares
000
behalf
on
certain
of
selling
stockholders).
share). Proceeds—For working
capital, etc. Office—659 Marion Road, Columbus, Ohio.
Underwriter—Carr & Co., Detroit, Mich.
Price—At
($1
par
per
Texas Western Oil & Uranium Co., Denver, Colo.
June 15 (letter of notification) 5,960,000 shares of com¬
for
general
corporate
stock
mon
cent). Price—Five cents per share.
Proceeds—For mining expenses. Office — 407 Denver
Sulphur, Inc., Houston, Texas
Aug. 24 filed 400,000 shares of common stock (par one
cent). Price — $1 per share. Proceeds — To purchase
lease; to drill three exploratory wells; for exploration
in the Isthmus of Tehuantepec, Vera Cruz, Mexico; and
(par
one
National Bldg., Denver, Colo.
ter &
Co.,
same
Underwriter—Floyd Kos-
address.
Thunderbird Uranium Corp.
June 9 (letter of notification) 3,000,000 shares of common
purposes.
stock. {Price—At
par (10 cents per share).
Proceeds—
mining expenses. Office—915 Simms Bldg., Albu¬
querque, N. M. Underwriter—Hicks, Newton & Co., Inc.,
it Sun Electric Corp., Chicago, III.
Sept. 13 (letter of notification) 500 shares of 6% cumu¬
lative preferred stock
fering price
ceeds— Fo
Avondale
•
Sun
Price—Aggregate of¬
(par $100).
or market value not to exceed $50,000. Pro¬
rgeneral corporate purposes. Office — 6323
Underwriter—None.
Avenue, Chicago, 111.
Vegas, Nev.
Feb. 16 filed
(as amended) 3,750,000 shares of com¬
mon stock (par one cent).
Price—$2.50 per share. Pro¬
ceeds—To construct hotel and for working capital. Un¬
Hotel,
Inc., Las
derwriters—Golden-Dersch &
Co., Inc., New York; and
Vegas, Inc., Las Vegas, Nev. State¬
Coombs & Co. of Las
ment has been
withdrawn.
Uranium Corp., Salt Lake City, Utah
(letter of notification) 2,750,000 shares of non¬
assessable common stock
(par two cents). Price—10
Sunburst
cents
per share.
Proceeds — For expenses incident to
mining activities. Office—116 Atlas Building, Salt Lake
City, Utah. Underwriter—Mid America Securities, Inc.
of Utah, same City.
Superior Uranium Corp., Provo, Utah
Sept. 2 (letter of notification) 10,000,000 shares of non¬
Ehare).
Proceeds—For
tivities.
Office
Price—At par
stock.
common
180
—
(two cents
incident to mining
expenses
Underwriter—Bel-Air
tion and
general corporate purposes. Office—328 HighAve., Silver Spring, Md. Underwriters—Charles E.
and Luther L. Bost, agents (Mitchell Securi¬
ties, Inc.), Silver Spring, Md.
East
Center
Securities
St.,
Provo,
per
ac¬
Utah.
Corp., Salt Lake City,
Utah.
if United Funds, Inc., Kansas City, Mo.
22 filed (by amendment) an additional
in
shares
Universal Service Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Underwriter — None.
Offering—■
Postponed.
Properties,
Sweetwater
Uranium
Co.
Sept. 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—605
Judge Bldg.,
Salt Lake City, Utah.
Inc., Denver, Colo.
Underwriter—Skyline Securities,
of $25
•
Trans-National Uranium & Oil Corp.
1 filed 1,200,000 shares of common
(10/17)
stock (par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
Office
Dallas, Tex. Underwriter — Garrett Brothers,
Inc., Dallas, Tex.
—
it Travelfares, Inc., Seattle, Wash.
Sept. 14 (letter of notification) 100,000
amounts
—National Securities Corp., Seattle, Wash.
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
Co.,
stock
(par 10 cents).
Price—$1.50
per
share.
common
Proceeds—
For expenses incident to oil and gas activities.
15
Washington
St., Tucson, Ariz.
Co., Miami, Fla.
L. Edenfield &
Office—
Underwriter—Frank
Corp., Salt Lake City, Utah
30,000,000 shares of
(no par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South
State St., Salt Lake City, Utah.
Underwriter—Anderson-Hackett Investment Co., same city.
30
(letter
—
Utah-Arizona Uranium, Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
stock (par 16% cents). Price—50 cents per share. Pro¬
ceeds—For expenses incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
assessable
share.
stock
Proceeds
(par five
cents).
Price—20
non¬
cents
per
For
mining expenses.
Office — 726
Bldg., Spokane, Wash.
Underwriter
Percy
Dale Lanphere, Empire State
Bldg., Spokane, Wash.
—
Paulsen
Tasha Oil & Uranium
Co., Denver, Colo.
(letter of notification) 6,000,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.
Troceeds—For mining operations.
St, Denver, Colo. Underwriter
—
Jaquith, Inc.,
same
Office—1890 S. Pearl
city.
Tennessee Life & Service Insurance Co.
June 20 (letter of
notification) 9,200 shares of
common
itock (par $5) to be offered for
subscription by stock¬
holders.
Price—$30 per share. Proceeds—To increase
working capital for agency expansion. Office
1409
—
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.
Texas
Adams Oil Co., Inc., New
York, N. Y.
Aug. ll (letter of notification) 66,600 shares of common
stock
(par 10
cents).
Price—75
cents
per
share.
.
City, Mo.
Utah
Grank, Inc., Reno, Nev.
(letter of notification) 270,000 shares of capital
Proceeds—For ex¬
penses incident to mining activities.
Office—312 Byington Bldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
Aug. 15
Price—At par ($1 per share).
stock.
★ Texas Oil Producing Co., Inc., Dallas, Texas
Sept. 22 (letter of notification) 600,000 shares of com¬
mon
stock
(par 10 cents).
Price—50
Proceeds—For expenses incident to oil
cents
per
share.
Office
Republic National Bank Bldg.,
Dallas, Texas. Under¬
Securities Co.,
Inc., 42 Broadway, New
York, N. Y.
Texas Textile
Mills, Inc.
*
(letter of notification)
common
stock to
27,500 shares of class,A
be offered for
subscription by common
stockholders of Miller Brothers of
Texas, Inc., who elect
to
sell
their
Brothers
common
pursuant
to
stock
an
simultaneously herewith.
\[ce ~Zr Cotton
writer—None.
■
of
that company to Miller
to pruchase
being made
Price—At par ($10 per
offer
Exchange Bldg., Dallas,
Co., Las Vegas, Nev.'
mining
Vegas, Nev.
city.
par
expenses.
(10 cents per share). Proceeds—
Office—210 N. Third St., Las
Underwriter—Lester L.
share)
Tex.
Under¬
LaFortune,
same
Utore Uranium & Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore.
Underwriter—Hansen
Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt &
Co.,
Two Jay Uranium Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
Place, Salt Lake City, Utah. Underwriter — Western
States
Investment
Ucon
June 2
one
cent).
com¬
Price—Five cents per share.
mining costs. Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.
U-Kan Uranium & Oil
Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office —
Judge Bldg., Salt Lake
City, Utah. Underwriter — Northern Securities, Inc.,
Seattle, Wash.
Union Gulf Oil &
Mining Corp.
Sept. 9 (letter of notification) 600,000 shares of
(par
10
cents).
Price—50
cents
per
common
share.
Pro¬
mining expenses. Office—510 Colorado Bldg.,
Denver, Colo. Underwriter—Honnold & Co., same city.
Union of Texas Oil Co.,
Houston, Texas
12 (letter of notification) 61,393 shares
July
stock
mon
reduce
other
of
com¬
(no par).
bank
13
stock.
tures
tubes, etc.
Underwriter
—
Zone Investments Co.,
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds
For mining expenses. Underwriter — I. J.
Schenin & Co., New York. Name Change—The company
was formerly known as San Miguel Uranium, Inc.
June 16
mon
stock
Vas
Price—$1.25 per share. Proceeds—
loans, and for development costs and
corporate purposes.
Uranium
& Drilling Co., Monticello, Utah
(letter of notification) 2,000,000 shares of com¬
Price—At par (10 cents per share). Proceeds
—For mining operations.
Underwriter—Skyline Secu¬
rities Inc., Denver, Colo.
June 20
mon
stock.
Underwriter—Mickle
&
Co.,
Houston, Texas.
capi¬
Pro¬
mining expenses. Underwriter—Moab Bro¬
kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.
ceeds—For
Washington REAP, Inc., Dover, Del.
Aug. 30 (letter of notification) 400 shares of common
Price — $500 per share. Proceeds — To purchase
outstanding stock of Elmark Corp., which owns garden
apartment development. Office—129 S. State St., Dover,
stock.
Del.
Underwriter—Real Estate Associates Plan, Inc.,
Journal
14
Square, Jersey City, N. J.
White
Horse
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 2,900,000 shares of capital
stock (par 2% cents).
Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1030 South Sixth
West
St.,
Salt
Lake City, Utah.
Denver, Colo.
Underwriter—J.
W,
Hicks & Co., Inc.,
Wicker-Baldwin Uranium Mining Co.
May 26 (letter of notification) 900,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
For mining expenses. Office—616 Sixth St., Rapid City,
S. D. Underwriter—Driscoll-Hanson, Inc., same city.
•
it United Aircraft Corp. (10/18)
Sept. 27 filed 243,469 shares of convertible
Corp., Moab, Utah
June 9
ceeds—For
To
mon
June 10 (letter of notification) 10,000,000 shares of
tal stock. Price—At par (three cents per share).
Proceeds—For
stock
May
Wabash Uranium
Corp., Salt Lake City, Utah
(letter of notification) 5,000,000 shares of
(par
Brokerage, Salt Lake City, Utah.
Vactron
Co., Tulsa, Okla.
Uranium
stock
mon
Uranium
Wisconsin
Southern
Gas
Co.,
Inc.
16,654 shares of common
stock (par $10), to be offered for subscription by stock¬
Aug. 31
(letter of notification)
stock
(par $100) to be offered for subscription by com¬
stockholders of record Oct. 18, 1955 on the basis
of one preference share for each 20 shares of
common
holders
on
mon
shares held.
stock
activities.
writer—Watt
Sept. 2
Price—At
stock.
Uranium
(letter of notification) 3,000,000 shares of capital
—
mining operations.
ceeds—To
selling stockholders.
Office—39 Broadway,
York, N. Y.
Underwriter—Philip Gordon & Co.,
Inc., New York, N. Y.
Utah Southern
Vanura
Tungsten Mountain Mining Co., Fallon, Nev.
Pro¬
New
City, Utah. Underwriter—
Co., New Orleans, La.
Fort Worth, Texas.
Carroll, Kirchner &
.
Lake
Brokerage
Evans & Co., Kansas
—
May 11
Salt
Streets,
Trans-Western
Corp.
(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—To *
manufacture, process, rebulid and market television pic¬
Seattle, Wash.
Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of
notification)
of
stock
common
Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
of 6% 12-yeav registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
each 10 shares held (with an
oversubscription privilege);
rights to expire on Oct. 6, 1955.
Price — $25.50 per
share. Proceeds
To repay $5,083,000 of bank loans.
& Co., New York.
Nev.
or
Uranium Technicians
June
Temple
shares of non¬
assessable common stock. Price—At par ($1 per share).
Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash.
Underwriter
June 8 (letter of notification) 149,800 shares of common
stock (par $1). Price—$1.50 per share.
Proceeds—For
Dealer-Manager—Goldman, Sachs
Virginia City,
multiple thereof. Proceeds—75%
to be invested in U. S. Savings bonds and the balance
for equipment and exploration
and development ex¬
penses.
Underwriter—None.
Offering—Postponed.
in
view
Jefferson
Tampa Electric Co.
Aug. 31 filed 197,532 shares of common stock (par $7)
being offered for subscription by common stockholders
of record Sept.
19, 1955 on the basis of one new share for
—
Ltd.,
June 13 filed $600,000 of Grubstake Loans to be offered
Tri-State Natural Gas Co., Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of
Swank Uranium Drilling & Exploration Co.
Aug. 17 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For expenses incident to
mining activities. Office—
Moab, Utah. Underwriter—Honnold & Co., Inc., Salt
Lake City, Utah.
...
(letter of notification) 250,000 shares of capital
($1 per share). Proceeds—For gen¬
corporate purposes. Underwriter—Doxey-Merkley &
Co., Salt Lake City, Utah.
Bldg., Carson City, Nev.
of Las V^gas, Nev.
Office—Virginia Truck
Underwriter—Coombs & Co.
market.
v
July 21
For
Price—At par ($1 per share).
1,750,000
eral
Washington, D. C.
stock.
common
Price—At
stock. Price—At par
Proceeds—For mining expenses.
assessable
Fund.
Income
Thorium Corp.
United States
June 6
non¬
United
the
Proceeds—For investment.
Price—At par (50 cents per share).
Proceeds—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah.
Underwriter — Lewellen-Bybee
Uranium Corp., Carson City, Nev.
(letter of notification) 300,000 shares of
11
mortgage loan business
Sept.
stock.
Susan B.
Aug.
Thursday, September 29,1955
.
Underwriter—None.
fields.
related
Uranium
if Titanium Ores Corp., Silver Spring, Md.
Sept. 9 (letter of notification) 300,000 shares of com¬
mon
(par 10 cents). Price—$1 per share.
Proceeds—
Payment of notes and accounts, equipment and installa¬
.
balance to be used to engage in
and
Denver, Colo.
July
Sept. 6
assessable
For
.
sions and improvements to property.
Not
held; rights to expire
to
be
corporate
Co.
less
than
purposes.
par
on
or
value.
about Nov.
preference
1.
Price-
Proceeds—For
Underwriter—Harriman
general
Ripley &
Inc., New York.
public.
basis
of
one
new
share
for
each
five
Price—$16.50 to stockholders; and $17.50 to
Proceeds—To
repay
bank loans and for exten¬
Office—235 Broad
St., Lake Geneva, Wis. Underwriters—The Milwaukee
Co., Milwaukee, Wis.;; and Harley, Haydon & Co., Incf^
and Bell & Farrell, Inc., both of Madison, Wis.
Letter
to be withdrawn.
Full registration probably to be filed
United American Investment Co., Atlanta, Ga.
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
Sept.
American Life'Insurance Co. and Tourists
Indemnity Co.;
assessable
.
the
in three to five weeks.
Wolfson Uranium Corp., Denver,
7
(letter of
common
notification)
stock.
Colo.
shares of non¬
150,000
Price—At par ($1 per share).
Volume 182
Number 5468
.
.
.
The Commercial and Financial Chronicle
(1329)
i
Proceeds—For expenses incident to mining activities.
Office—800 Denver Club Building, Denver, Colo. Under¬
writer—Seligmann & Co., Milwaukee, Wis.
Wonder Mountain Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon stock
(par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
—
Office—414
Denver Nat'l Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.
Yellow Circle Uranium Co.
July 22 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds
For mining expenses.
Office — 223 Petroleum 1
Building, Salt Lake City, Utah. Underwriter—Morgan
<& Co., same city.
—
Uranium
Corp. (10/3-7)
Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
payments under purchase and option agreements for
claims; for working capital and reserve funds; and for
other general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc.,
both of New York City.
York Oil & Uranium Co.
June 3 (letter of notification) 10,000,000 shares of capi¬
tal stock. Price—At par (two cents per share). Proceeds
—For mining and oil activities.
Address—P. O. Box
348, Newcastle, Wyo. Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
Zenith-Utah Uranium Corp.
,
Sept. 14 (letter of notification) 6,000,000 shares off class
A common stock. Price—At par (five cents). Proceeds
—For
Lake
mining
from
$40,000,000 to $50,000,000 bonds
expenses.
Office—45 East Broadway, Salt
some
125,000
for
York.
—
certain
selling
stock¬
Hemphill, Noyes & Co., New
/
;
,
of
...
,
.
:
Delaware Power & Light Co.
July 26, Stuart Cooper, President, announced that the
is planning the issuance of bonds and equity
securities. It appears that the first step in the perma¬
nent financing of the program will take place sometime
company
late this fall.
Proceeds
Bank of
California, N. A.
13 stockholders approved
Sept.
additional shares of
the issuance of 52,200
capital stock
(par $20), which are
being offered for subscription my stockholders of record
Sept. 13, 1955 on the basis of one new share for each 10
shares held; rights to expire on Oct. 6, 1955. Price —
$70 per share. Proceeds—To increase capital and sur¬
plus. Underwriters—Blyth & Co. ,Inc,; Dean Witter &
Co.; Merrill Lynch, Pierce, Fenner & Beane, and Schwa bacher & Co., all of San Francisco, Calif.; and R. L.
Day & Co., Boston, Mass.
(10/17-21)
Sept. 12 it was reported that early registration is ex¬
pected of $8,000,00® of subordinated debentures due 1970.
Proceeds—Together with funds from private sale of $3,000,000 of notes or debentures, to be used for general
corporate purposes. Underwriter—Lee Higginson Corp.,
•
Barium Steal Corp.
New York.
•
Boston & Maine RR.
Co.
and
Salomon
Bros.
&
Hutzler
(jointly);
Brothers; Union Securities Corp.; The First
Boston Corp. and Blyth & Co., Inc. (jointly);
White,
Weld & Co. and Shields & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock
(which may be first offered to stockholders)—W. C.
Langley & Co. and Union Securities Corp. (jointly);
Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Carl M. Loeb, Rhoades &
Co.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co. (joint¬
ly): Lehman Brothers. (3) On preferred stock—Blyth
& Co., Inc. and The First Boston Corp. (jointly); White,
Weld
&
Co.
and Shields
& Co.
(jointly); Lehman
Brothers; W. C. Langley & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co.
Lehman
Du Mont Broadcasting Corp.
10
it
was
announced
that
of
interest for the
year
1955)
(par $100). Not in excess of $28,784,564 of bonds would
be issued.
it Burlington Industries, Inc.
Sept. 29 it was reported that the company plans early
registration of an issue of $30,000,000 subordinated con¬
vertible debentures.
Underwriter—Kidder, Peabody &
Co., New York.
I
Canada.
mining undertaking on Merrill Island, Quebec,
Underwriter—Allen & Co., New York.
Offer¬
ing—Not expected for three or four weeks.
Chicago & North Western Ry. (10/5)
Bids will be received by tfre company up to noon (CDT)
on Oct. 5 for the purchase from it of $3,900,000 equip¬
ment trust certificates to be dated Nov. 1, 1955 and to
mature in 15 equal anntial installments: Probable bid¬
ders:
B.
Mont Labora¬
Du
Kuhn, Loeb & Co. and Van Alstyne, Noel
handled Du Mont Laboratories
Co.
class A
stock fi¬
Offering—Not expected until
after Oct. 10, when stockholders of Laboratories will
vote on forming Broadcasting firm.
nancing
years
some
ago.
Essex County Electric Co.
July 18 it was reported company plans to issue and sell
some additional first mortgage bonds. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated.
First National Bank, Dallas, Texas (10/5)
Sept. 14 it was announced stockholders will vote Oct. 5
approving the offering to stockholders of record
Oct. 5, 1955, the right to subscribe for 200,000 additional
shares of capital stock (par $10) on the basis of one new
share for each 10 shares held. Price — $30 per share.
on
Proceeds—To increase capital and
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
(Walter E.)
& Co.
Houston
(Texas) Gas & Oil Corp.
applied to the FPC for authority to
construct a 961-mile pipe line from a point near Baton
Rouge, La., to Cutler, Fla., to cost approximately $110,382,000. It plans to issue and sell $81,200,000 of bonds,
about $20,000,000 of 51/£% interim notes
(convertible inta
preferred stock), and over $8,700,000 of cbmmon stock.
Stock would be sold, together with the
notes, in units.
Aug. 26,
„
company,
Underwriters—Discussions
with Blyth &
& Jones, Inc.,
are
reported to be going on
Co., Inc., San Francisco, Calif., and Scharff
New Orleans, La.
surplus.
'
Indianapolis Power & Light Co.
Sept. 8 it
was
announced
additional shares of
ers
on
as
ceeds
the
common
basis of
of Oct.
—
company
one
stock to common stockhold¬
new
share
for
eacn
Ifh-shares
27; rights to expire about Nov. 10.
To retire bank loans.
Underwriters
—
Pro¬
Lehman
Brothers, Goldman, Sachs & Co. and The First Boston
Corp.
Kayser (Julius) & Co.
Aug. 17, it as announced company plans an offering of
stock to its shareholders and borrowing through
longterm bank loans.
Proceeds — To finance acquisition^
through purchase, of the net current assets of Holeproof
Hosiery Co. (latter's stockholders approved proposal
on
Sept. 6).
Laclede Gas Co.
Aug. 8 it
was stated company plans sale of about $10,000,000 convertible first preferred stock to stockholders.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Lehman
Brothers, Merrill Lynch,
Pierce, Fenner & Beane and Reinholdt & Gardner
(jointly); White, Weld & Co.; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated. Bids—Probably
this
fall.
Lanolin
Plus, Inc.
reported company (name to be changed
from Consolidated Cosmetics, Inc.) plans registration of
about 200,000 shares of common stock (par for selling
stockholders).
Aug. 15 it
was
A Lau Blower Co., Dayton, Ohio
'
Sept. 26 it was reported early registration ,pf 205,200
shares of common stock (par $1) is planned.' Proceeds
—To selling stockholders. Underwriter—A. C. Allyn &
Co, Inc., Chicago, 111.
Lithium Developments, Inc., Cleveland, Ohio
9 it was announced that company plans soon
June
to
registration statement with the SEC covering a
proposed issue of 600,000 shares of common stock. Pro¬
ceeds—For general corporate purposes.
Underwriterfile
a
George A. Searight, New York, will head group.
Long Island Lighting Co. (10/26)
April 23 it was announced company plans to sell
issue of $15,000,000 first mortgage bonds, series
an
EL
Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
due 1985.
Fischer & Porter Co., Hatboro, Pa.
Aug. 18, Kermit Fischer, President, announced that the
company expects to offer additional common shares to
the public in the near future
(about 60,000 shares).
bidders—Halsey, Stuart & Co. Inc.; The First Boaand Blyth & Co., Inc. (jointly); W, C. Langley
& Co.; Smith, Barney & Co,; Baxter. Williams & Co
Bids—Expected to be received up to 11:30 a.m. (EDT)
Underwriter
on
—
Hallowell,
Sulzberger
&
Co.,
Philadel¬
was announced company may issue and sell
$10,000,000 and $12,000,000 of first mortgage
Underwriters—To be determined by competitive
April 14 it
between
bonds.
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly): Glore. Forgah & Co.; and The First
Boston Corp. Offering—Expected late in 1955 or early
1956.
Ford Motor
Co., Detroit, Mich.
reported a public offering of class A
n
on-voting common stock is expected between Oct. 15
Sept.
and
Campbell Chibougamau Mines, Ltd.
Aug. 15 it was reported a secondary offering of about
150,000 shares of common stock will be registered with
the SEC.
Business—Company, recently formed, is a
copper
derwritten.
&
corporation, following
Florida Power Corp.
in exchange for each
the outstanding 274,597 shares of 5% preferred stock
5%
Heller
held
&
phia, Pa.
Sept. 15 it was announced that stockholders on Oct. 20
will vote on approving a plan to offer $105 principal
amount of series B 5% income debenture bonds (plus
at the office of Alien
Property,
Justice, Room 664, 101 Indiana Ave*,
W., Washington 25, D. C., up to 11 a.m. (EDT) On
of
Loeb
tories, Inc. of 1,000,000 shares of common stock as a
dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬
City Electric Co.
England, President, announced that the
directors are now considering the sale to the public of a
small amount of common stock early next year. Under¬
writers—Probably Union Securities Corp. and Smith,
Barney & Co., both of New York.
(9/29)
(10/28)
has applied to the
Indiana P. S. Commission for authority
tocjffer 209,685
—
program,
which will
Aug.
1, B. L.
sell
To repay bank loans and for
which
includes two plants
cost approximately
$40,000,000. Underwriters
—To be determined by competitive
bidding. Probable
bidders: (1) For bonds—Halsey, Stuart & Co.
Inc.; Kuhn,
construction
City, Utah. Underwriter—Bel-Air Securities Corp.,
city.
Atlantic
to
July 18 it was reported that the company may be con¬
sidering some new financing. Underwriter—F. Eberstadt
& Co. Inc., New York.
(10/10-14)
account
Underwriter
planned
outstanding
reported company plans early registra¬
shares
is
shares of this company. Proceeds — From sale of 943
shares to go to the Attorney General of the United
States
and from sale of 125 shares to
go to another stockholder.
tion of 175,000 shares of common stock, of which
50,000
shares are to be sold for the account of the company and
holders.
it
Sept. 29 for the purchase from it of 1,068 shares of cap¬
ital stock (par $24),
constituting all of the
Morgan
New York and San Francisco.
was
that
Co., New York
Department
N.
—
Sept. 26 it
(11/16)
announced
Bids will be received
time during
Inc.
issuance to stockholders of Allen
Aug.
Heine &
(10/12)
Sept. 21 it was reported that company has applied to
the ICC for authority to issue and sell 100,000 additional
shares of common stock. Proceeds
For acquisitions
and new equipment.
Underwriter—Blyth & Co., Inc.,
A Craig Systems, Inc.
was
$7,500,000 20-year general olftigation bonds.
Proceeds—For school construction. Bids—To be
received
on Nov. 16 at Bankers Trust
Co., New
the current year. Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Stanley & Co.; The First Boston Corp.
(Territory of)
it
12
issue of
an
sell
Prospective Offerings
same
Hawaii
Sept.
York, N. Y.
Consolidated Edison Co. of New York, Inc.
14 it was announced company expects to
ir Consolidated Frelghtways,
Worcester County Electric Co. (10/18)
Sept. 13 filed $8,500,000 of first mortgage bonds, series D,
due 1985.
Proceeds—For payment of bank loans and
new construction.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane, Sal¬
omon Bros. & Hutzler and Stroud & Co., Inc.
(jointly);
Coffin & BUrr, Inc.; Kidder, Peabody & Co., Blyth &
Co., Inc. and White, Weld & Co. (jointly); Blair & Co.
Incorporated and Baxter, Williams & Co. (jointly); The
First Boston Corp.
Bids—Tentatively scheduled to be
received up to 11 a.m. (EDT) on, Oct. 18 at company's
office, 441 Stuart Street, Boston 16, Mass.
Yellowknife
24, Willis Gale, Chairman, announced It should be
financing.
estimated,
will cost about $125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston Corp.
and Glore, Forgan & Co.
Fall before the company undertakes its next
Proceeds—For new construction, which, it is
June
>
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
Jan.
Under¬
Woods Oil & Gas Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
revision of corporate structure, etc.
Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To
be withdrawn.
Commonwealth Edison Co.
57
19 it
Nov.
be the
15.
bulk
Foundation.
the
was
It
is said
of
that
the
stock
to be
sold
will
3,089,908 shares now held by the
Price—In March last, it was reported
offering price
was
Ford
that
expected to be around $60 per
share.
'
Gulf States Utilities Co.
bidding.
Lehman
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, W(eld & Co. (jointly); Salomon Bros,
& Hutzler and Union Securities Corp. (jointly); Kuhn}
Loeb & Co. and A. C. Allyn
ton Corp.
Oct. 26.
JVIarquette Cement Manufacturing Co.
Aug. 12 directors approved a $16,000,000 plant expan¬
sion program.
Certain details of financing and en¬
gineering remain to be completed. Underwriter—A. G,
Becker & Co. Inc., Chicago, 111.
Michigan Consolidated Gas Co.
Aug. 15 it was reported company may issue and
sell this
$27,000,000 of first mortgage bonds due 1985. Pro¬
repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White,.
Weld & Co. and Lehman Brothers
(jointly); Smith,
fall
ceeds—To
Barney & Co. and
Blyth & Co., Inc. (jointly); Harriman
Ripley & Co. Inc. and Union
•
Minute Maid Corp.
Sept. 12 it was reported
Securities Corp. (jointly).
(10/18)
registration is expected late m
September of $8,500,000 4% subordinated debentures due
1974.
Proceeds—To Clinton Foods, Inc., who received
$17,300,000 of these debentures for its Snow Crop DiUnderwriter—Merrill Lynch, Pierce, Fenner &
vison.
May 16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
permit.
able
& Co., Inc. (jointly); Lee
Beane, New York.
National Bank of Washington
Sept. 12 the bank offered to its stockholders of record
of said date the right to subscribe on or before Oct 7
for
on
205,000 additional shares of capital stock (par $10>
for each two shares held.
the basis of one new share
Continued
on vaae
58
-A
58
The Commercial and Financial Chronicle
(1330)
Continued from page
Puget Sound Power & Light Co. April o, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
57
Proceeds—To increase capital and
Underwriter—Johnston, Lemon & Co., Wash¬
Price—$30 per share.
surplus.
u
ington, D. C.
National
.172^'
Aug. 23 company filed
in
with the SEC an application tOf
in exchange for shares of Penn¬
hearings
Sept. 20.
on
New
received
be
on
y
approved
less'than
Underwriter—Probably Rey¬
ceeds
March
it
29
issue.
This
would not
exceed
increase
stockholders
scribe
-
—
Spray Cotton Mills, Spray, N. C.
-
Bids
financial
of
resources
announced that new capital require^
will approximate $31,000,000. Present
are
for
of
record
-
held.
Price
capital
new
one
shares
the
United
Feb.
of
Pennsylvania Electric Co.
plans to Issue and sell
$9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The Firstr
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
later this year
'
Inc.
Electric Co.
Feb. 21 it
was reported company proposes issuance and
sale of $7,500,000 of preferred stock later this year. Pro¬
Price—$8
(par $2)
per
to stockholders
on
a
share. Proceeds—To further
for
and
program
general
corporate
pur¬
bonds.
the
authorized
indebtedness
South Texas Oil & Gas
30
shares
Probable
dated
Nov.
1,
to
$150,000,000
stockholders
of
cumulative
Co.
authorized
convertible
issuance
preferred
of
1,
1970,
Stuart & Co. Inc.;
Peabody & Co.
Salomon Bros.
Southern Co.
Aug. 29 it
to
York County Gas Co., York, Pa.
29 it was announced company
"What, then
.
.
.
may we
each
Hutzler; Kidder,
shares
expect
beyond
an
any
we
negotiations
Russians
will
continue
to
draw
their
be
our
our
nations.
—
teeth at
our
to
or
demand because
to
we
as
Louis
on
new
Nov.
2.
share for
on
Price—To
possible that issue
may
however, agreement
always been limited.
be placed privately.
With H. L. Jamieson
SAN
liam
J.
hardly ask
FRANCISCO, Calif.—Wil¬
H. Wolfe is
Jamieson
on meas¬
(Special to The Financial Chronicle)
win
With Carr & Co.
—
Simon
E.
SAN
Andreas
&
with
members of the Detroit Stock Ex¬
has
J.
A.
Andreas
D.
has
>
a
state of
In fact,
we
to Staff
was
become
Overton
Co.,
Mr.
formerly with Daniel
Weston & Co.
Calif. Investors Add
connected
&
'
(Special to The Financial Chronicle)
FRANCISCO,
Calif.—
Fay
SAN
LOS ANGELES,
has
Purvis
now
&
added to the staff of Reynolds &
members
Co., 425 Montgomery Street.
San Francisco Stock
Fay,
221
of
the
New
Street,
York
to
the
Inyestors, 3924
With Samuel B. Franklin
(Special to The Financial Chronicle)
with Hooker
Montgomery
added
been
Wilshire Boulevard.
LOS
Brantley M. Johnson, Jr. has been
Calif.—Richard
*
FRANCISCO, Calif.—Wil¬
liam R. Kern is
;
•
H.
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
as¬
viously with Walston & Co.
change.
Reynolds Adds
become
DIEGO, Calif .—William H.
Dunn has joined the staff of Carr
Company, Penobscot Building,
Calif.—Ed¬
FRANCISCO,
Roberson
Reynolds & Co., 425
Montgomery Street. He was pre¬
(Special to The Financial Chronicle)
Mich.
A.
sociated with
Joins J. A. Overton
(Special to The Financial Chronicle)
SAN
with H. L.
now
Co., Inc., Russ Bldg.
Reynolds Adds to Staff '
much
want
or
more
*
(Special to The Financial Chronicle)
SAN
DETROIT,
contemplates the
new series of its
staff of California
the conflicts of nations in
civilization have
one
1; rights to expire
Joins Hooker &
to less
menacing pro¬
portions, to limit it by certain rules of international
—
basis of
Nov.
We could
acknowledged
reduce the conflict
behavior
a
mailed
more!
The
thump the table in making it.
"We may expect,
on
Halle, Professor of Foreign Affairs,
University of Virginia, in the New York "Times."
proclaiming to
democracy, to commit suicide,
own
plans to offer first
additional shares of
company
1,507,303
about
be
a
bonds, in an aggregate amount not yet
Proceeds—To
pay
for new construction
probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive bidding.
Probable bidders; Hal¬
sey, Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
Weld & Co. and Shields & Co.
(jointly). It is also
expect, in the fullness of time, to bring it
gradually within the bounds of legitimate intel¬
lectual, political, and commercial competition."
We may
It will continue
the world the
eventual doom of our
system and the triumph of
theirs. We
may not expect them either to embrace
liberal
held
of
determined.
in sight, for it is in¬
herent in the differences between
ideological rivals,
(par $5)
may not expect.
now
Corp.;
mortgage
may
expect to obtain from
on which we have
end of the conflict.
bidding.
Securities
and
announced
Warrants to
negotiations
"Note first what
ures
12
embarked?
now
issuance and sale later this year
first
(11/1)
stockholders
stock
May We Expect?
the Russians in the
our
was
common
common
Nov. 22.
What
not
&
competitive
June
by Hunter Securities Corp., New York, who
it is stated, will not underwrite the new
preferred issue.
1955, and
by
Webster
October.
110,000
stock
handled
of
&
Stone
in units of notes and stock. Bonds are expected to bo
placed privately. Hearings on new pipe line scheduled
to begin before FPC on Sent. 19.
Underwriter—East¬
man, Dillon & Co., New York.
.Offering — Expected in
from
(par
Proceeds—For exploration and drilling
program,
etc. Underwriter—Previous common stock
financing was
to mature in 15 equal
$531,000 each from May 1, 1956
inclusive. Probable bidders Halsey,
instalments
Nov.
determined
be
bidders:
Merrill, Lynch, Pierce, Fenner & Beane.
$10).
(9/29)
Bids will be received by the company up to noon (EDT)
on Sept. 29, in
Philadelphia, Pa., for the purchase from
it of $7,965,000 equipment trust
certificates, series DD,
C.
Inc.; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union
Securities Corp. and Merrill
Westpan Hydrocarbon Co.
Lynch, Pierce, Fenner & /
March 2 it was announced Sinclair Oil Corp. has agreed
Beane
(jointly); Lehman Brothers; The First Boston
with the SEC to divest itself of its investment of 384.380
Corp.; White, Weld & Co. and Shields' & Co. (jointly.
shares of Westpan stock (52.8%).
The timb in which
Bids—Expected to be received up to 11:30 a.m. (EDT)
Sinclair may sell their holdings has been extended by
on Nov. -29.
SEC to Dec. 21,
1955. Underwriter—Union Securities
★ Scott Paper Co.
Corp., New York, underwrote recent sale of Sinclair's
Sept. 20, Thomas B. McCabe, President, announced a
holdings of Colorado Interstate Gas Co. White, Weld &
major financing program will probably be undertaken t
Co., New York, may be included among the bidders.'*
'
by next spring. No decision has yet been reached as
Westcoast Transmission Co., Ltd.
to the precise
type, amount or date of financing. Stock- April 25 it was reported company now plans to issue
holders approved proposals to increase the authorized
and sell publicly about $20,000,000 of securities, probably
common stock to
40,000,000 shares from
Aug.
Pennsylvania RR.
Gas
N.
derwriter—To
$50,000,000.
Corp.; Smith, Barney & Co.; Harriman Ripley &
$17,500,000.
Virginia Electric & Power Co. (12/6)
Aug. 2 it was announced that company plans to issue
and sell 125,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program.
Un¬
Underwriter—None.
10,000,000 shares
Co. Inc.
be
stock
common
building
and
ceeds—For construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
about
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.; White, Weld & Co. and Equitable
Securities Corp.1 (jointly); Harriman Ripley & Co. Inc.
and Goldman Sachs & Co. (jointly).
Proceeds—To repay bank loans and for new
Underwriters—To be determined by com- r
petitive bidding. Probable bidders: Halsey, Stuart & Co. ?
Feb. 15 it was reported company
at
Corp.
^
\
j
McGowen, President; - stated that com¬
might be doing some debt financing. On Aug. -20
24,
pany
construction.
Registration—
estimated
it was announced that "such additional funds as
may be
needed will be obtained by bank loans and if conditions
warrant some form of debt
security." Underwriter—To
Diego Gas & Electric Co.- (11/29)
Aug. 2 it was reported company plans to sell $18,000,000
Expected shortly with SEC.
to
of
which is
—
San
to the California P. U. Commission for an
exemption from its competitive bidding rule. Proceeds
—To retire bank loans and for construction program.
annual
f <-
Underwriter—Dillon, Read & Co. Inc., New York.
$45 per share. Proceeds
To increase
surplus.
Underwriters—Walker, Austin &
and
poses.
(10/25)
has applied
to
•
publicly offered. Proceeds—For working capi¬
Office—Buffalo, N. Y.
;
construction,
share for each 12 shares
of 5%.
the directors authorized the sale of 1,000,000
shares of redeemable first preferred stock (par $25) and
Boston
>
•
—
Waggoner, The First Southwest Co. and Dallas Rupe &
Son, all of Dallas, Texas. Meeting—Stockholders to vote
Oct. 4 on approving
financing and stock distribution
14
Pennsylvania
(10/11)
the
Texas Gas Transmission Co.
15 it was reported company
plans to sell addi¬
tional first mortgage bonds later to finance-cost of new
4, 1955, the rights to sub187,500 shares of capital stock
l-for-7 basis.
Underwriter—Probably Blyth & Co., Inc.
at
March
r
Oct.
additional
an
ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co. (jointly); Glore, Forgan & Co.
Sept.
received
to be
tal.
•
Rye National Bank, Rye, N. Y.
Sept. 27 stockholders of record Sept. 22 received the
right to subscribe on or before Oct. 31 for 52,300
& Electric Co.
be
common)
compahy.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
Pacific Gas
will
June 6 the stockholders voted to approve an authorized
issue of 500,000 shares of first preferred 'stock
(par $10),
of which 300,000 shares (to be convertible into
Lehman Brothers and Lazard Freres &
(par $12) at the rate of
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
•
:
First
.
Republic National Bank of Dallas (Tex.) ^ (10/4L
Sept. 19 it was announced bank plans to offer to its
v
was
1955
for
ments
Co. (Minn.)
debenture
Co., both of New York.
proximately $200,000,000. Underwriter—For any bonds,
to
be determined by competitive
bidding. - Probabit
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
Northern States Power
To
—
Underwriters
which will cost ap¬
program
expansion
Sept. 2 the directors discussed the advisability of issuing 2,
$100,000,000 of subordinated convertible debentures. Pro¬
Co.
17, Keith S. McHugh, President, announced thai
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
New York Telephone
improvement
determined
-
.
Jan.
and
Underwriter—To be
keep abreast of estimated load growth over
.
,
nolds & Co., New
sion
subsidiary companies.
by competitive bidding. Probable bidders:-The
* Boston Corp., Ladenburg, Thalman & Co., Carl M.
Rhoades & Co. and Wertheim & Co.
uftice of Alien
Property,'2
$50,000,000 and would be issued at the discretion of the
Department of'Justice, Room 654, 101 -Indiana Ave.,
directors any time within the next 12 months. Under- /
N. W., Washington, D
C., up to 3 p.m. (EDT) onJDct./ll ;
writer—Probably Smith, Barney & Co., New York.'
*
for the purchase from it of 2,610 shares of common stock
Quaker City Life Insurance Co.
(par $100). This represents approximately 31.99% of the
Sept. 12 it was reported registration is expected late this ?' common stock issued and
outstanding, Proceeds—To the
month of about 90,000 shares of common stock. Proceed^
Attorney General of the United States.
Business—Manu¬
—To go to selling stockholders.
factures and sells carded cotton yarn.
Underwriter—Lehman
,
Brothers, New York.
Sterling Precision Instrument Corp. ' •
Radio Corp. of America:
/
Watch Co.
of new capital.
York.
extent
«
Aug. 3 it was announced that stockholders
a plan of recapitalization and plans to raise not
$300,000
to
order
convertible
a
Nov. 15.»
Haven Clock &
New
the
to
The company has scheduled
program, involving $79,000,600
Thursday, September 29,1955
be named by company on Oct. 31.
Proceeds—To repay;
bank loans and for investment in
additional stock of
April 9 stockholders approved the possible issuance oi "
borrowings. Underwriter-r-To be de¬
termined by competitive bidding. Probable bidders. Hal—
sey
Stuart & Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.; Glore, Forgan & Co. Bids—Expected to
temporary
repay
least
sourcesr-at
.
-
England Telephone & Telegraph Co. (11/15)
Sept 20 it was announced company plans to issue and
sell $30,000,000 of 36-year debentures.
Proceeds—To
.
large-scale
a
sylvania Gas Co., a principal subsidiary, on a basis of
1.45 National shares for each Pennsylvania Gas share.
SEC will open
outside
.
Loeb,
(jointly;; Blyth Q&
Co., Inc., Bear, Stearns &*Co. and Dean Witter & Co. "
the next five years.
Underwriters—Probably Stone & ' (jointly); Union Securities Corp. and Equitable Securi¬
Webster Securities Corp., The First Boston Corp. and
ties Corp. (jointly); Lehman
Brothers; Morghn Stanley
& Co.;. Kidder, Peabody &
Smith, Barney & Co. Halsey, Stuart & Co. Inc., is re¬
Co., and Merrill Lynch,
ported to head a group to bidior approximately $25,000,- .1 Pierce^ Fenner & Beane;
Bids—Tentatively scheduled
000 of bonds. Stockholders are to meet bn Oct. 20.
to be received up to 11 a.m. (EDT) on Nov. 1.
Regis¬
Pure Oil Co.
tration—Expected Sept. 30.
V
**
* '
*
Fuel Gas Co.
offer its common stock
from
purposes
of several million dollars."
.
and
Exchanges.
W.
Samuel
215
Calif. —A. D.
ANGELES,
Smith
is
B.
West
now
affiliated
Franklin
Seventh
&
with
Company,
Street.
Volume
182
Number 5468
.
.
The Commercial and Financial Chronicle
.
(1331)
ported
that'
indicated
preliminary
inquiry
good general demand
a
with
institutions showing
erable interest.
The
stock
issuer
to
is
consid¬
funds
for
vast
reported
was
stage
and
market
today
known
million
of
period
a
of
recent
Tax
Exempts Revive
Something
tax
of
exempt
revival
a
market,
in
the
which
has
the
of
bond
selling.
features
Convertible
with
other
naturally
with
case
high-grade bond market, of
course, is that today it is largely
with
dividuals
that
cut
situation
back
so
a
in¬
when
wider-
a
in
operation
the
or
in
swath
of finance.
area
on a
out,
program
long-term
cordingly
well-thought
and,
ac¬
not given to haste in
are
disposing of securities. Moreover,
.with
all
factors,
due
element
views
respect
rates
money
in
to
other
the basic
are
formulating investors'
bond prices and yields.
on
And the investment
market has
A Sound Mail
A
member
,,
York
Stock
city
the
Exchange
office
an
of
firm
under the
in
New
management
toll
of
prices
while elevating yields accordingly.
So that in a sense the bond mar¬
ket
was
cn
who for many years has been
firm believer in the proposition
man
a
that
base
when
news
came
from
the
unsettling
Denver, Colo,
the last week-end.
over
there
are
do
now
people who
many
because tney are unfa¬
so
with
tneir
advan¬
with which
The
many
the
before his entry
years
investment
this
man
was
banking
one
vinced him
in
into
ket between
mar¬
and the dates set
now
for
public offering may bear im¬
portantly on the marketing of two
A a r g e
secondary.. undertakings
.
"slated
v
for next week.'
"y '
~
taking
up
block
a
200,000
of
simple
regular
sends
His
is
rather,
but
pany,
On
Thursday
bankers
com¬
stock
of
being
official.
an
next
scheduled
are
another large block of
not
does
to
week,
market
stock, 392,-
•000 shares of American Can
com-
again for the account of
.present owners. Further unsettle•mon,
ment
in
could
bring
the
market
conceivably
change
a
in present
plans.
The
Debt
Deals
rather slow irom
issues
new
week.
for
in
,
that
to
in
offing
listed
are
bids, both .utility
Public
Co. will
Service
selected
a
next
as
up
,
letters
tell
there
is
an
Tuesday,
on
unforeseen
change in present plans.
And
Power
the
on
&
can
appreciate.
ries
one
One
Each
message
their
of
at
a
"Method
the
allows
the
selecting his
own
same
Light
will
as
the
over
Kaiser
a
&
stock of
Chemical
letter,
and
do
Carrying
a
4%%
30^
share
per
November 15, 1955,
the
the
on
are
payable
4% Cumulative
payable January 3,
stockholders
to
December 27,
holders of
are
stockholders of
business Sep¬
to
close of
30, 1955.
1956
to
of
record
1955.
Robert A. Wallace
Vice President and
Parker
Dale
Secretary
September 19, 1955
Bogota, New Jersey
Secretary
CONSOLIDATED
•••••••••
NATURAL
in
advertising.
COMPANY
New York
to
for
turning these
good
business.
in
use
the
after
V\7eek
wmmm pacific
•
20, N. Y.
.
Dividend
The
has
No. 31
„
DIVIDEND NOTICE
A
this
day declared a regu¬
lar quarterly cash
dividend of
Thirty-Seven and One-Half Cents
(37y2<,■) per share on the capi¬
tal stock of the Company, pay¬
able on November 15, 1955 to
of
j
board of directors
of
record
business
dend
October
R. E. Palmer,
9
#
November
stockholders
1,
1955,
of record
_
*
to
*
•
•
•
Oc-
tober 14, 1955, was declared
the
at
regular quarterly divlof $1.25 per share on
the 5% Series Preferred
Stock ($100 par value) payable
by
the
on
17,
1955.
expert
.
finance corporation
•
r
stockholders
This
GAS
30 Rockefeller Plaza
Folder) of National Securities
stores is
September 21,. 1955.
Board
of
Directors
Secretary
September 22, 1955
Secretary ./',
#
•••••••••••••••••
-
8. c. Reynolds,
Kill
department
same
ideas
•
investment
week
he
is
going before his selected group of
ing.
mailings
who
His
and
same
not
of
whom
he
advertising
theme.
STAUFFER CHEMICAL
It is in¬
DIVIDEND NO. 171
teresting to
firm
those
newspaper
follows the
that
has
what
see
a
member
the New York Stock
Ex¬
ON COMMON
The
Board
change is doing in the heretofore
Consumers
sacrosanct
has
environs, that
were us¬
ually the exclusive property of the
particular stocks
unlisted and local securities dealer.
notice
of
of
COMPANY
STOCK
Directors
Power
authorized
dividend of
55 cents per share on the
outstanding Common Stock,
payable November 21, 1955
to
a
dividend notice
of
Company
the payment
The Board of Directors has declared
a
share
owners
of
dividend of 40C
common
quarterly
DIVIDEND
PREFERRED
The Board
has
74/i
of
CONSECUTIVE YEAR
MATCH COMPANY
OF DIVIDENDS
the
per share on the
payable December I,
th§
stock
1955 to stockholders of record at
close of business November 17, 1955.
Christian deDampierre
Treasurer
record
The Board of Directors of The Diamond Match
Company
September 22, 1955, declared
on
a
on
a
are
meeting
per
payable November 1,
stockholders of
October
7,
Stock
as
fol¬
share
owners
of
record
CLASS
P£R SHARE
$4.50
$1,121/2
$4.52
$1.13
$1.04
JACKSON, MICHIGAN
Secretary
PULP PRODUCTS
•
•
LUMBER
•
BUILDING SUPPLIES
•
a
of
Directors
dividend
five
cents
the
Common
(25$)
per
Stock
share
Par
1
share
($1
on
Par
on
the Common Stock
£no
Value)
not yet exchanged
Company's Exchange
Instructions dated May 19, 1953.
under the
dividends
October 25, 1955 to
of
record
at
October
are
payable
stockholders
the close of busi¬
10, 1955.
L. G. CLARK, Treasurer
WOODENWARE
September 27, 1955.
was re¬
has
of twenty-
of the Company, and a
dividend of fifty cents (50tf) per
ness
SvwtKfOutvfateWCicAtyiK
MATCHES
declared
Value)
CONSUMERS POWER COMPANY
1955.
Board
The
on
These
record
WARD W. DIE GROOT,
be
Preferred
TECHNICOLOR, Inc.
payment
$4.16
same
the $1.50 Cumulative Preferred Stock.
Both dividends
the
quarterly dividend
December 2:
quarterly
quarterly dividend of 37y2c
of Directors also
authorized
a
ON
STOCK
lows, payable January 3, 1956,
to
pre¬
dividend rate
tember
1955
15,
at
Preferred Stock
September 21, 1955
these
brought to market today.
and priced at par ($50), it
Common Stock.
Common stock dividends
record
close of business October 20, 1955.
at
on
practical suggestions about invest¬
1955 to
to
record
on
could your
investment
you
your
the risk of
share
slated
payable
should
car¬
Kaiser Aluminum
Corp.,
SYSTEM, INC.
No. 85,
prospectus (Informa¬
a
dividend of 40c per share on the Common Stock. At the
new
share
per
Dividends
v^xvxvi'x^vxyvvx'jv;:-..:
good demand
for the >700,000 shares of
Federal
5 Of! per share on the 4%
Common Stock
r
Aluminum
Dealers reported
of
October 21.
bidding here indicated
likely to be rather keen.
ferred
on
merchandiser
time.
the Board also declared
*.
something
carry
cess
dividend
30-year first mortgage bonds
with
If
investors,
Pacific
look
Directors
hopes will become investors, with
The DIAMOND
day,
of
the
street
of Investing"
undertake
to
45('
offices
meet
Board
October
Constant repetition of any idea
that is sound is,the basis of suc¬
experience and financial back¬
ground
plants,
and
Can
such sub¬
recent
person
Common & Preferred Dividends:
Cumulative Preferred Stock.
GAS
close
how
letter
a
It
the
in
man
FEDERAL PAPER BOARD CO., Inc.
PACE
The Board of Directors has declared this day
the following final dividend for 1955:
Continued Mailings
longer term in sound,
growing corporations, or in Mu¬
tual Funds, than to
try and out¬
the
G.
dividends:
basic
needed?
thte
happen to
vest for the
the market—and
Chicago September 19, 1955.
THE COLUMBIA
managing and supervising your
Are you immune to
tion
increase their incomethey can protect their pur¬
that
Octo¬
Paper Board Company, Inc. has this
day declared the following quarterly
Series, is enclosed.
can
guess
business
The
subscribe to the
you
services,
to
this
you.
laboratories
the
give
who
people
of
The transfer books will
Secretary
Along
with
this
interesting,
thought-provoking brochure, and
bankers' tenders for $10 million of
new
"Have
bids for $35 million
open
close
FRED
,
chasing power from their savings
—why it is best for people to in¬
jects
"stopper."
a
doing these things,
things for you.
are
syllable, technical words to do it.
These
Dated at
investor should know
an
travel
without using any 10-
Gas
&
the
at
14, 1955.
be closed.
only told
were
Direc¬
Phenolic Corporation
dividend of twenty cents
a
not
program?"
The Investing Com¬
panies through Mutual Funds are
from
believe
founds, if they
about them
of
Man¬
projects.
Electric
of 25-year debentures
unless
be
standpoint of
a
the
Only two
to
brochure is
should
newspapers;
they
hiring
Investment
family
firm
advertising they
the
the
how to judge whether
they can qualify before
purchasing individual securities.
to
Doing It
letter
of
of the companies in
which you expect to invest? Can
you devote a full 40 hours a week
before
this
Board
management
them
the names of people
might invest Jn, securities or. Mu¬
are
Light
bromises
week
new
inc.
er
and
con¬
to be
stressed the fact that Mutual Funds
New
today
investments?
intervals
short
a
sources
how
This
sold for the account of
language
the
of American
record
you
contacts; from the of¬
fice's contacts; and from qualified
ica
Monday.
of
not
financial
salesmen's
they
next
meeting
a
investors
training? Do
of the country's
that people had
How He Is
At
shares of Aluminum Co. of Amer¬
represent financing for the
dividend notices
vestments," prepared by National
Securities & Research Corp., 120
Broadway, New York, which tells
emotion?
tual
As things now stand investors
are slated to get the opportunity
vof
La Salle Street.
Eer share was declared, payable Octo28, 1955, to the shareholders of
through
so
questions:
and investment stocks.
doing
stock
Co., 39 South
before he is qualified and asks the
business,
leading department stores.
background of merchandising
do
tells what
top merchandising
a
executive with
to
This
only
are
told about it in lay language. For
mailing list that is compiled from
Offerings
behavior of the
27th.
Barclay Invest¬
Modern furniture
Campaign
or
many
tages, and the ease
they can do so, if they
the returns of
Equity
shareholders of record Oc¬
tober
folder "How to Manage Your In¬
would invest in stocks and bonds,
and in Mutual Funds, but do not
fairly well shaken-
a
•down
with
now
agement" that the Investing Com¬
panies provide.
This letter was sent with the
of a
tended
its
ment
held
"Professional
recently
southern
a
told
take
is
ber
they would understand and buy
anything—including Mutual Funds
going through a period of
firming money rates which has
to
lo
CHICAGO, 111.—Royal H. Peter¬
tors
been
.
will be mailed November 15th
(Special to The Financial
Chronicle)
son
share has been de¬
clared by Daystrom, Inc. Checks
to Staff
om,
By JOHN DUTTON
miliar
Institutional portfolio managers
naturally work
regular quarterly dividend
of 30c per
Barclay Adds
At
speculative
of the
generation
A
electronic products
opened
contrast
&
Company ^of
Georgia Building. "
bids about Oct. 26.
issues
moved
"institutional"
Mc-
Beer
bonds.
County (Chicago) is going
to make another try with its $40
million highway issue on which it
rejected
bids
just
about
two
mar¬
bulwarking factor in the
an
W.
with
now
Trust
Securities Salesman's Corner
of
stocks.
A
in the form of $69
is
Company,
ELIZABETH, N.J.
ground, refusing to be rushed into
those
the
on
Electrical and
ket to its roots. But the gilt-edge
investment
market
stood
its
an-d
be
ATLANTA, Ga.—John
Donough
of
a spasm
liquidation which shook the
hasty
to
dividend notices
and
equity markets on the news
President Eisenhower's illness.
Stocks went through
advanced
ing Authority is scheduling $125
million of local housing bonds for
or
performances
Virginia
in
the
months ago. And the Public Hous¬
been relatively dull since the stif¬
speculators, never
was mere
clearly defined than it fening in money rates got under¬
has been this week by the relative
investors,
Joins Beer Co. Staff
59
(Special to The Financial
Chronicle)
Richmond-
Cook
months.
The difference in
temperaments
of bona fide investors and semi-
in
expected
expansion plans which it has made
over
an¬
nouncements.
Financing for the
Petersburg Turnpike
being sold by the
procure
is promised by current
way,
SO
The Commercial and Financial Chronicle
(1332)
..
Thursday, September 29,1955
.
ing rule in politics that what¬
ever
a
man's past convictions
BUSINESS BUZZ
before the virus of Presi¬
were
dential ambition hits him, he is
on.v.->
going
to
adopt
line
a
his judgment will best
his
A
BeWnd-the-ScMN InterpfitaBoni
from lb* Nation'*
ft ft
/lfUt
Capital.
candidacy.
can
g\t§
A l/W
Only
tell what kind of
Mr.
Nixon,
that in
advance
the
whomever
or
be in the line of
pears to
gods
philosophy
>
ap¬
succes¬
sion, will adopt when the time '
comes.
ton
with
stricken
been
attack, there
heart
a
President
that
tragic
news
Eisenhower has
the seeds for the most
legislative outlook. Howaver, many of the implications
of this tragedy will not become
certain for weeks, some of them
months.
immediate
if
tion is whether and
«,
•
when
i
For if it
by the question
of whether the President merely
President
-
|
j
to
serve
period
or whether the
were
to resign for¬
,
mally, in which case Mr. Nixon
would become President of the
would
"acting"
be
to.follow the
line
I
attempting ;
without
beginning,
'
attempt
policy
same
President, at least in the
of the
to express his own ideas as if j.
5
lie
in
were
leader
the
fact
of 1
of
if
of
return
Eisenhower
Mr.
to the White House desk, would
extensive
not make
if
changes,
in the Presidential official
household or policy.
any,
other
White
House staff under the "Assistant President," Sherman Adams,
In
the
words,
inighj: continue to have its ac¬
quired dominance over the
making of Administration pol¬
icy, if perhaps less completely
under
than
Eisenhower.
Mr.
other
the
On
were
Presidential
hand,
if
succeed
to
term
Mr.
which
ends
1957, Dick Nixon would
become his own man. He quite
would
make extensive
the White, House
in
changes,
This is suggested only on
staff.
general principles, not upon any
foreknowledge, which simply is
not available
as
Mr. Nixon ob¬
would not discuss on
any basis his plans at this un¬
certain juncture.
The general
viously
,
that
the
seldom
White
does
House
any
man
want
with
himself
round
involved
chiefly
principle
to
is
in
sur¬
another
man's close
advisers, and he us¬
ually feels he has men in mind
who can express and interpret
his
;
own
ideas
better.
chief
way
of,
(And
cates
the
cratic
the
President's illness, even if tem-
;
porary, is likely to affect the
political and legislative outlook
does not arouse
of many
for
the
Presidential
latter feel
the
chances
Senate
upon
Bill
tained
go
an
finally made official.
was
ever,
Knowland
the
post
How¬
has
re¬
largely/by de¬
fault,
be
under
would
own
be
party
attack
isolated
as
well
easier
the
In
the
Senate
of
ment
1956.
the
to
within
war
and
for¬
on
Knowland
up
ranks
by
In
"liberal"
the
net, the
chances
of
Presidential
Senator
parties will
the
necessarily
enhanced.
It
is
thought that Dick Nixon is rela¬
tively more a conservative than
Mr. Eisenhower.
Certainly "lib¬
aspirants
the
for
in both
pre-convention stocks of
political merchandise, and to
distinguish their own inven¬
tories of said political merchan¬
those
from
other
of
likely
are
to
be
less
so
ing,
or
ents
the
candidacies
their
of
able
~
is
reported
position
to
Democratic
it
to
were
does
not
that Mr. Nixon would be
resign
follow
a
con¬
servative any more than was
Franklin D. Roosevelt after his
his
However, Senator Clem-_
under
President
election,
seasoned, know¬
political " oper¬
be fighting
for his political life with an
op¬
On the other
the
Presidency,
and
ator.
hand, the back¬
ers in Congress of those candi¬
dates will be attempting to sup-
ma¬
been Senator Earle C. Clements
of Kentucky, a
so.
port
and Mr. Nixon succeeded to the
Senate
Acting leader during the ill-'
of Senator
Johnson, has
Men
become more
Republicans think so, and
oppose him.
On the other hand,
if
narrow
or
large
measure
vitality,
{ go far toward
the; race for
his
of
recovers
his
illness
health
could
taking him out of
&
Prior
to
N
the
mation
about
any
he
Lasser's
Tax
Estate—J.
tute
Corp.,
York
Joe
the
Lasser
Real
for
Tax
Insti¬
Publishing
430 Park Avenue, New
22, N. Y. (cloth) $9.95.
Mining Development in Asia and
Publication, No. E/CN.
Columbia
University
Press,
2960 Broadway, New
York 27, N. Y. (paper) 70c.
—
Monev Market and Its Institutions
—Marcus Nadler,
Samuel
S.
Sipa Heller &
Shipman—The Ron¬
ald Press Company, 15 East 26th
Street, New
(cloth) $6. -
York
10,
N.
Pensions:
Edited
and
Except for
was
kicked
bill—there
over
is
Director
of
the
S.
ance
Education—Richard D. Ir¬
win, Inc., Homewood, 111. (cloth)
$4.50.
V
was
able
distrust
of
the
"liberal"
element.
machine
It is
a
pretty good safe work-
New Views
Martin
is
the
B
on
(Common)
STOCK
on request
Investment
10
Carl Marks
FOREIGN
on
in
Con¬
HANOVER 2-0050
nominal
of
the
Republicans in
House, but Charley Halleck,
rrtimwirwivtotii
•
t
Co. Inc.
SECURITIES SPECIALISTS
50 BROAD STREET
TEL:
&
v
•
NEW YORK 4, N. Y.
TELETYPE NY 1-971
S.
.Huebner Foundation for Insur¬
LERNER & CO.
hardly
j
Trends-
by Dan M. McGill, Ex¬
ecutive
Copies
Congress has been for
Y,
*
Problems
RIVERSIDE CEMENT CO.
leader
nation, which few in Washing¬
Planning
K.
Reinholdt
—
lack of
a
"strong leadership
even assuming that
the President wanted this nomi-
con¬
reported to have had consider¬
"Happy" Chandler threat-
gress.
^nomination,
automatic,
trols, measuring instruments and
various manufacturing processes
—Leeds & Northrup Company,
Advertising Division, 444 North
16th Street, Philadelphia 30, Pa.
(paper).
CALIFORNIA
time apparent.
roads
Publications—Infor¬
File
becom¬
ing President, Mr. Truman
Speaker Rayburn in the House
—and
f
request.
Leaderlessness
This will make for
Presidential
the
on
L
Harry Truman after
accession.
leaders, through the diverse po¬
sitions
they take on pending
Makes for
\ M./ Clifford
eral"
ness
who had been relatively conser¬
vative may
at¬
jority.
com¬
thrown.
heart
will be able to continue to weld
pitches
peculiar
some
a
together his
petitors for the nomination.
Thus
of
has
fully recovered his
vitality, there will be no cer¬
tainty that the Texas Senator
own
dise
that
Johnson, who also had
misfortune
tack,
attempting to develop their
be
Work,
,
a
Until it
nomination
Clifford—A.
11/393
conservative Administration for
the near or long term are not
be ascertained
His
Responsibilities—
National
Conservatives' Chances
Are Not Enhanced
wings of the Democratic party
from warring with each other.
can
M.
and
the Far East 1953-1954—United
policy is likely to be one
great chaos. •
What
will' happen
is
that
of
,
—
factional
a
Senate
stay
trying to unseat him.
Lyndon
conservative
the
by
It simply has been
leave
a
Johnson,
the
Democratic leader, developed a
remarkable facility for keeping
Assuming that the Republican
race is wide open, the outlook
on Administration and Congres¬
unloved
put than to open
develop¬
strong leadership in
either party looks difficult for
more
is
eign policy.
the Demo¬
by
and
spoken independent line
as
crats.
Demo¬
nomination will be
Republican
acting capacity by\the
then ailing Senator Taft, and it
of the
to
of
originally bestowed
him in
though
compelled
Know-
advisers of the President in the
White House, because of his out¬
otherwise
indi¬
and
,
Associates, 639 S. Spring Street,
Los Angeles 14, Calif, (paper)
California has retained
post
leader
F.
A.
\
helpless situation whereby they
Presi¬
the
for
even
^William
Counselor:
Methods
Clem¬
Senate.
along with the President in the
intense.)
some
Even if the President
a
-
Republicans
from their
ter of the
and
'
the
the
is that it completely alters the
campaign of 1956.
;
older
the
of
enthusiasm
of
Senator
in the
leadership in actions before the
next Congress.
Already the leaderless charac¬
i
'
the
by
sponsored
programs
liquidate
career
land
wel¬
the
outlook
♦
backing of
aggressive
leck personally
mantle
fight
-
CLASS
in which
;
i
his
in
influence
•
Demography
Spiegelman (Society
Textbook)—Soci¬
ety of Actuaries, 208 South La
Salle
Street, Chicago 4> 111.
(cloth) $6.
t^move in, in Kentucky,
Senator
On the other hand, because of
or
another,
to
course:
Democratic
ents
-
misfortune ^enhances
dent's
and
than former Speaker Martin.
fall.
to
con¬
President Eisenhower, Mr. Hal¬
the
nomination
ening
appears
of the
fidence of the White House staff
Republican national convention
in August, 1956, to choose the
man
upon whom the President
like
leader,
more
fare
decisively
would
assistant
often to have
to
or
to
Actuaries'
legislation.
Affects Campaign
The
the
or
go
-
Investment
would
his favor
Nixon,
fact
the
to
Jan. 20,
likely
"Morning, J. C.,—anything to that rumor the elevator
operator is peeved at you because of that last market
tip you gave him?"
nomination,
the
for
—
of
Mortimer
of
suc¬
a
Government
per) 35c.
Introduction
Open
the President would back
the
of
on
Executive
Documents,
U. S. Government Printing, Of¬
fice, Washington 25, D. C. (pa-
sional
Might Be President
Nixon
-
Branch
the
of
Superintendent
his
J
whether the President could
,
.:
he
for
votes
Reports—Commission
Organization
recovery
nomination,
of
Force
-
Therefore the tentative think¬
Dick
policy
in
abrupt. He
he anticipated
,
if Mr.
even
after
loss
whether
case,
become
not
presumably,
the
that
In
break
the
however,
might
land.
the
words,
the
ing in Washington is that the
Republican nomination is likely
to be a wide' open affair, 'j It
cannot be foretold, so many untaken steps in advance, whether
cessor
his party and the Chief Execu¬
tive
other
Presidential Race Is
name,
own
presumably
would
incapable of
probably would have a hard
time getting it, for his illness
could
mean
a
strategic per¬
,
his
in
President
lie
)
.
be alleged that a
candidacy.-
Mr.
Nixon
rather than
that
as
Index to the Commission and Task
centage
United States.
Assuming
out
dates
r:
wanted
convalescence,
President
or
reasons
Eisenhower
his
during
him
Man's
the
birth
can
is for
In
convalescence,
of
assist
to
in
directories,
,
gives the opponent a hefty argument, /notwithstanding
that
the "argument" is only veiled
or
whispered.
during the Chief Execu¬
tive's
or
Business
they
as
serving because of his health, it 1
be complicated
Vice
Congress,
older.
grow
man
of President,
the
release
biographies
their
leave
they
This outlook, however, would
asked
of
Congressional
exercise
will
Nixon
duties
the
trip
hospital
a
cannot be avoided.
news
Members
-
President
usually; "play
of
operation, unless
of the
prpt/ition from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]
life
po¬
a
Even Senators and
self-written
privilege formally of re¬
nouncing the responsibilities of
his office.
If he does so, then
under
the Constitution,
Vicethe
is
health
approach old age, often change
the dates of their birth in their
ques¬
so,
unfor¬
political
of
news
an
or
himself of
President avails
the
down"
if
bitter,
man's
Representatives
.
Paramount
the
truths
a
that
litical issue.
and
for
of
One
is
[This column is intended to re¬
flect the "behind the scene" inter-
in.
came
tunate
compre¬
the political
change in
hensive
news
j
are
wont to assume when
were
the
WASHINGTON, D. C.—In the
Securities
Post Office Square
Boston, Mass.
Vloone HUbbard 2-1990
Teletype BS-69
@FedFRASER