Full text of Commercial and Financial Chronicle : September 5, 1957, Vol. 186, No. 5670

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

OF MICHIGAN

ESTABLISHED 1S39

SEP X

Commercial

an

61957

BUSINESS ADMINISTRATION
ilBBAIT
;

d

RH- U. S. Pat. Office

Volume 186

Number 5670

New York 7, N. Y.,

Thursday, September 5, 1957

Price 40

Cents

Copy

a

EDITORIAL

As

Meaning of Membership

We See It

In the Federal Reserve

Congress has adjourned. Members of the two
houses

have

returned

certain if they can
satisfied with what

to

their

homes

By A. L. MILLS, JR.*

make

to

that their constituencies

are

Reserve banks is raised by

and the election of
said

to

a

activities

For those who
fare of the
cal

more

of all member banks fall in accord with the

the framework

we

session's record
much

follow declared policy.

dismal

a

It

one.

of government also assumes

contract

those
the

is

program was
deserved to he clobbered—but because there

and sound

The

to bring this country back to
footing.

Eisenhower

a

for

the

in

safe
A.

L.

of

whun

in

government

the

formulation

Mills, Jr.

States

them.

Senate,

grounded

had

case

enlight¬

more

the

was

these

questions been pre¬
to, and answered by, the
Secretary and the Treasury staff.

sented

and

conduct

I

of

Measuring the

the

same

kind -of political

Where

Walter E. Spahr

by

Seattle, Aug. 28,

afforded

Mr.

Mills

at

the

Pacific

Coast

on

page

Banking

terms

dollar

our

the

of

the

of

Value

of

prices, would not

purchasing

were

index

of

better

a

discussed
consumer

estimate

of the behavior of prices have been

obtained if the

more

comprehensive index of wholesale

(primary) prices had also been used?
(1)

Continued
address

changes

of

power

in

Constitu¬

the

Declining

<@ur Dollar

Since

27

the latter index, which covers some 2,000
and 5,000 quotations in primary markets,

Had

commodities

School,

Continued

1957.

on

26

page

REGISTRATION—Underwriters, dealers and investors in corporate

complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 30.

DEALERS

and

ening to all concerned than

return

tion recognized the prior existence of a federation of
independent states, the Federal Reserve Act created a
system of 12 regional and autonomous Federal Reserve
Banks, each of which is governed by a board of di-

22

are

fundamental

many

The debate should have been

better

philosophy that is to be found in the
Constitution.

SECURITIES NOW IN
securities

of

a

questions, which should have been
raised and answered, escaped proper
attention. The following are some of

advantages of its protective

much <of

page

United

governmental -policies.
The Federal {Reserve Act contains

*An

on

virtue

Finance,

on

and

government

by

rate under

During the 14 days in which Secretary of the Treasury
Humphrey presented his testimony and responded to
questions, June 18-July 12, 1957, before the Committee

sort of

a

lower interest

a

redeemable currency.

the

was

Continued

governed

easily and at

might over their persons and prop¬
erty and a reservation, above all, of
right to retain a decisive voice

was

mostly "New
Deal. The Democratic party could not consistently
simply cast it aside. What its members in Con¬
gress did was for the most part to convert it into
something they might call their own and then
enact a
good deal of it. Many members of the
program

between

authority

throughout no promise or even a suggestion of
any constructive line of action which could be
counted upon

more

governed surrender a measure
their individual freedom to the

of

of the

original Eisen¬
"clobbered" — much of it

hower

sell

not

lican government should exist for the good of the
people
at large and only with the consent
of the governed.
This philosophy

interested in the wel¬

is

—redeemable currency—as unsound.: Specifies the dif¬
ference between a price level index number and a sound
dollar and wonders whether Government bonds would

obligation to

drafting the Constitution of the United States, the
Founding Fathers were influenced profoundly by those
political philosophers who held that democratic repub¬

must believe most Americans

dismal not because

of their collateral

In

country than in the fate of any politi¬

party—as

are—the

are

within

:

Dr. Spahr queries range from the
currently popular spurious theory that rising costs cause !
rising prices to the current practice of calling irredeem¬
able currency sound which is found to leave the
opposite

free to make autonomous loan and investment decisions

a

"fundamental" quesHumphrey at the Byrd

poses

Committee hearings.

System's credit policy. This is said to leave the members

President in 1960. Re¬

take

tions not asked of ex-Treasurer

Mr, Mills in describing Sys¬
membership requirements, advantages, rights, and
privileges that go with membership. The Governor ex¬
plains how, through mutual understanding, total credit

"grim" view of
things, although the so-called anti-Eisenhower
wing of the party is said to have succeeded in
regaining a good deal of their power and in¬
fluence in the party. "Modern Republicans" are,
of course, deeply disappointed. So much for the
partisan politics of the past year.
are

Nationally known economist

tem's

standing with the rank and file, and in general
building up the prospect of a further gain next

j

Executive Vice-President,
Economists' National Committee on Monetary
Policy,
New York City

The possibility of a conflict between Federal Reserve
money-credit policies and member bank borrowing from

well satisfied with the progress they think has
been made in injuring President Eisenhower's

publicans

By WALTER E. SPAHR

Member, Board of Governors, Federal Reserve System

they have done and left un¬
done in Washington. Democratic members in¬
cluding their leaders are reputed to feel rather

year

Fundamental Questions
That Were Not Asked

a

State, Municipal

in

I

U. S. Covernment,
State and
"

m

Municipal

♦

^COPIES OF OUR

4 '

,

f

'

*

r

4

♦

M

*

and
f

♦

»

t

'■ *

.
*

•

'•

\

'

t

'

t

•

T

•

■■■

'

Bonds and Notes

HAnover 2-3700

"MARKET REVIEW"

the

CHEMICAL

burnham

CORN EXCHANGE

MONTHLY

view

ARE NOW AVAILABLE
ON

LETTER

THE FIRST NATIONAL CITY BANK

BANK
bond

*

Public Housing Agency!

^sa tiN

Securities

telephone:

5

Burnham

department

30 BROAD

ST.jN.Y,

1

and

15 BROAD STREET, NEW

OF NEW YORK

Company

MEMBCRS JitW YORK AND AMERICAN

•

Dl 4-1400

Bond

DEPARTMENT

THE

Harris, Upham
llfembers

STOCK EXCHANGES

YORK 5, N. Y.

120

Dept. Teletype: NY 1-708

34

TELETYPE NY 1-2242

CABLE: COflURNHAM

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New

York

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&

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from

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Active

Net

To

BANK AND

1832

Members
New York Stdck

Exchange

American

Maintained

and

for

Brokers

CANADIAN

BONDS & STOCKS

Exchange

Stock

Banks

CANADIAN

Commission

INSURANCE STOCKS

Markets

SECURITIES

T. L.WATSON &CO.
ESTABLISHED

Dealers,

Orders

Executed

On

California
Municipals

All

Canadian Exchanges At Regular Rates
CANADIAN

I Municipal

DEPARTMENT

|

Teletype NY 1-2270

25 BROAD STREET
NEW YORK 4, N. Y.

DIRECT

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WIRES TO MONTREAL AND TORONTO

Goodbody

&

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Grpokatio/i

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FIRST

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MEMBERS NEW YORK

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DALLAS




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CHICAGO

Bond

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Exchange Place, New York 5,N. Y,

Teletype NY 1-702-3

WHitehall 4-8161

S3H

300 MONTGOMERY STREET
SAN FRANCISCO 20, CALIFORNIA

|

2

The Commercial and Financial Chronicle

(1002)

The Security I Like Best

Brokers, Defers bnly

For Banks,

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

Try "HANSEATIC"
isn't

There

participate and give their

reasons

for favoring

(The articles contained in this forum

"quote"

any

they

•re

be regarded,

to

offer

as an

to

not

are

intended

be,

to

Service

and

but,

—

New

sell the securities discussed.)

when

results in the separation of the oil

MYERN

von

HOHENBERG

Partner,

Osborne

from
the

Tburlow,

&

Oil

On

of

basis

of

comoarative

Union

of

Oil of California

would

appear
to
be
favorably
priced vis-a-vis those of the great¬
number of the major oil com¬

est

panies.

Associate
American

in

•

5

SAN

Wires

Private

to

be given to the planned
extraction of oil from the com¬
to

pany's

Athabascan-type

deposits

CHICAGO

•

consideration

no

Louisiana, Canada, Costa Rica,

pears

Teletype NY 1-40

BOSTON

or

be

and Panama. No consideration ap¬

Exchange

PHILADELPHIA

to

given to the com¬
pany's important new discoveries

120 Broadway, New York
WOrth 4-2300

Little

appears

Member

Stock

FRANCISCO

Principal Cities

lar

sand

Santa

near

Barbara,
company's oil
shale developments which, if suc¬
cessful, could make Union Oil a

Calif.,

to

nor

the

The

SIGHTS

Members

Stock

American

Stock

important

Exchange

Life

During the last two

Oil has operated a 50-ton

Insurance Co. of Va.

Commonwealth Natural Gas

Union

future.

Gulf

Gil

bought

tween

$70

and

$80

share,

per

depending

on the conversion date.
Should Gulf elect to convert these

to

make

further

cash

payment

the Piceance Creek basin, Colo., in
order
to
test
the
process
on
a

production

basis.
This plant is
producing between 200 to 300
barrels daily, which are sold com¬
mercially, and will soon be pro¬

now

ducing
per
was

800

barrels

of

oil

crude

vast

a

Gas

years

one

NY 1-1557

Birmingham, Ala.
Mobile, Ala.
<
<

Direct wires

to

branch offices

our.

The

program.

company's present exploratory
extend
into
13
states,
four provinces of Canada and into
activities

I APANESE

Alaska, Cuba, Guatemala; Costa
Rica, Panama and Peru. At the
end

of U956

the

company's

STOCKS

net

reserves

of

For

amounted to 495.4 billion

barrels
cubic

crude

feet

of

and

current

Call

2,182,600

natural

information
write

or

"

Dis¬

gas.

Yamaichi

increased natural gas reserves by
one-third.
Important crude dis¬
coveries were made on off-shore

Securities Company

oil

have

reserves

estimated

cost

or

recently

exceed the

of

The Union Oil method

mining of

involves

shale,

crushing it
through a high

and passing the ore

Union Oil

amounting

the largest shale
United
States,

owns

in

the

to

estimated

on

billion barrels with

five biUion

an

oil

content,

followed

Pigeon

in the Lake Po ilarde
An

important

b'-epo+d

in

Field

111

field

new

recently

Union

&

Investment

Bankers

Broadway, N. Y. 6 COrtlandt 7-5680

was

holds

now

by

Several

1.2

over

Province

ad¬

wells /
of Costa
-

million

excellent

in

the

Limas

Rica .have

showings

and

had

large

a

Firm
in

scale

exploration program is being
conducted
there
currently.
An

by
with

initial

well

in

Panama

has

mad"

good showing and a second wR
be drilled shortlv.
Geology
indicates that new major nrcUu*will

ing

fields

of

world

importance

Oil's

Trading Markets
All

the

Maintained

Securities

of

—

TRANS-CANADA i

a

may be brought", into production
pilot plant will* in these -countries.
..♦/
prove as economically feasible as 'J Union's oil
and gas production
refineries
will
receive
Middle is expected (profits in
.excess5 of •; is near its all time high and the
Eastern oil from Gulf's Kuwait $1
per barrel), then plans naves new discoveries in
Louisiana and
production and Gulf is finding a been formulated to
proceed with" Alberta promise, to increase these
market for its crude in one of the the
construction of a plant -with .amounts
considerably in the near
fastest-growing consumption areas a daily capacity of 25,000-30,00(L future; - Union's
net production of
in the United States
California, barrels, currently scheduled -'to crude
during 1956 amounted to
which already today has to
import begin operations in 1960. Such a' 37.7 million
barrels. In all, Union
13,% above its native production.
plant would employ a battery of had 4,330
producing wells at the
Other more indirect benefits will
nests of retorts, each nest consist¬
end of 1956.
Two .hundred pnd
of course accrue to Union Oil in
ing of four retorts with a better sixty-nine wells were drilled dur¬
its rapidly
expanding foreign op¬ than 1,000 tons of shale per day
ing.'the year, of which 248 proved
erations by having
Gulf—experi¬ capacity, thus incorporating the', productive
an
outstanding rec¬
enced in the international
picture pilot plant.
ord.
Earnings
If

Brokers

and

area.

Tokyo, Japan

-

discovered

Oil

Inc.

of

Yamaichi Securities Co., Ltd.

estab¬

were

newly

York,

Affiliate

acres.

1.5 billion.

with

reserves

the

Bavou

pany

ditional 20 billion barrels of lower

shale

Big

8.5

net recovery

a

barrels and

New

Union in
northern Alberta, where the com¬

heat retort.

reserves

of

leases in the Gulf, and additional
in

tr

PIPE LINES
M-V:V

Limited

WISENER

COMPANY

and

LIMITED

...

73

King St West

Toronto,Canada*

Trading OepL

EMpire 3-8204

—

STRADER and COMPAQ, Inc.
Lynchburg, Va.
LD 39

TWX LY 77

Burns Bros. & Denton
INC.
37 Wall

Street, New York 5, N. T.

—

A

Continuing Interest in

—as

an

visor.

Fischer & Porter Inc.

indirect

For

partner and ad¬

Gulf, Union's dominant

position in the Shale Oil Develop¬
ment program may
prove of vital

Capitol Products Corp.

importance in the future.

should

surprise

no

that

one

attention has become focused more
and more- on the vast shale oil

boenning & co.
Established

1914

1529 Walnut Street

115

Broadway

Philadelphia 2, Pa.

New York 6, N. Y.

CO 7-1200

LO 8-0900
ATT

Teletype PH 30

deposits

petroleum

in
Salt Lake Stock

on

ilG

<£►

^

Park

Holiday Oil &

^

Gas

Guardian Chemical

Helicopters

*Narda Microwave
Prospectus

on

of

the

request

1

Salt

Lake

this

area

1,000 bil¬

(This compares with

estimated

crude

continental

reserves

United

States

35

billion barrels.)
This shale
long remained a tantalizing
orize, just out of reach of oilmen.

from

has

the

Stock

Exchange)

Exchange PI., Jersey City, N. J,
Teletype JCY 119
N. Y. Telephone
Dlgby 9-3424

Direct private wire to
Salt Lake
City




shale

possible for
source

made

petroleum

it

These

this

A number of

extractive processes

exist,

which

variations

the

numerous

Swedish

method,
'

\

among

which

on

in-

miles

from

3 x p e n s

.

problems

solved.

market,

panies

re¬

i v e pipe lines.
have now been

in

sufficient

quantities to
enable them to operate a plant
capacity of 150,000 barrels daily,
live times the planned
A

pipe

line

is

in

production^

General Controls

being

com¬

California

mar¬

General

kets to the four-corner area which

pleted
is

from

only

Union's

the

miles

200

distant

The

Near to the Santa

fornia

Reserves

estimated at between
lion barrels.

plant

of

high-quality
petroleum.

the oil

impres-

growth
ords

of

200-

as

a

Gross

to

liquid

similar

Another process

to

used

•by Sinclair in field tests involves
the

a

polios tion of heat to shale in

the ground at the well
base, which

These

the

oil

sands

surface

methods

will

are

and
be

strip

for 43 Years

t

con¬

trol companies
a

dpv

mining

<-»f <>53

sales in-

s

Richard

W.

Rudy

as a

Incorporated

base: the pretax

corporate earnings index was 147,
while the control companies' in-

_

!•

Established 1913

46 Front Street
CHICAGO

*

of California crude.

National Quotation Bureau

us¬

ing 1947-1949

The

bringing in costs lie below those

a

seven

had

near

employed.

Quotation Services

Na¬

year

leading

daily.

located

Over-tlie-Counter

tional Product

ity will be increased to from five

a

barrels

-

any

group;
for
with the index

Next year the capac¬

thousand

r e c

of

industrial

is condensed to

ten

••SAVING*

ctf +he

are

Union Oil expects to

extraction

an

;

has

mil¬

75-100

Company

sive postwar

dis¬

large deposits of Athabas¬

can-type tar sands.

have

has

opp

most

Barbara, Cali¬

refineries, Union

covered

had

165. the

to release

Company

Controls

control

industry
Athabascan-Type Tar Sands

last

and then

Canadian and Domestic

market.

deposits. A tie-in line has

been planned to this area.'

in late fall.

balls

well

one of the most inter¬
esting growth stocks in the current

from

shale, which is passed

vapor

Investment Securities

com¬

and

looks like

new

barrel capacity daily in operation

heated

major

industry

Assistant Investment Manager
Farmers Insurance Group
Los Angeles, Calif.

..

volves the mining and
crushing of
over

the

RICHARD W. RUDY

Union has acquired water

rights

Dealers

are

below the conversion price of the
Gulf Oil debentures.

800

Under tor iters—Distributors

The

selling currently on a
price-cash-flow ratio of 4.5, the

deposits due to the lack of

quiring

im¬

from

to compete with
ordinary,

free-flowing crude.
are

1956

c*sh

lowest among the 30

extracting the oil

steel

CAPPER & CO.
(Members

in

exceed

The high cost of

Symart-Tintair

Doman

the

has

Exchange

yMagnolia

in

reserves

estimated to

lion barrels.
current

Orders Executed

locked

16,500
square mile area where Colorado,
Wyoming and Utah adjoin. The
arc

shares

share for

$4.45 with, a
share of $12.42.

per

water in these arid regions and to
the fact that the deposits are more

Shale Oil
It

shale

flow

to

than

International Textbook Co.

Keyes Fibre Co.

per

amounted

Many persons have expressed
skepticism in regard to the eco¬
nomic feasibility of developing the

Continued

on

page

•

New Orleans, La. -

"discovery costs of domestic

tended to approach

agreement to both companies are
evident. Union Oil's crude
hungry

Exchange

HAnover 2-0700

many

expansion

Exchange

day. The building of this plant
further stimulated by the fact

that

of

Natural

Yoric Stock

American Stock

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

coveries in Louisiana alone during
the first six months of 1957 have

with 1.6 billion and Cities Service

arising out of this

Steiner, Rouse &Co

of
the
major producers
in
the
California area, has embarked on

success

to warrant the opening on May 18,

1957, of a new thousand-ton per
day
$7,000,000
shale-processing
pilot plant at Grand Valley, in

and

Oil, f'Oi-

the

Union's

Calif.

Explorations

day

per

pilot plant with sufficient

Oil

Union

years

far-reaching beneficial

on

Angeles,

.

Members

important

effects

Bought—Sold—Quoted

Members New

Crude

lished

was

The benefits

Industries

City.

Group,
Los
(Page 2)

Union Oil).

months

in the company.

Furniture

Furniture

sur¬

$48,000,000 to $72,000,000 de¬ Standard Oil of California
pending on the timing. Upon com¬ 7.2 billion barrels, Pacific Western
plete conversion Gulf would have Oil with 4.2
billion, Equity Oil
an
approximately 22]A% interest with 4 billion, the Texas Company

Trading Interest In

Thurlow,
(Page 2)

promise

holds the greatest
of economic recovery.

of

TEL. REctor 2-7815

Bassett

the

rangement with Gulf Oil Corpora¬
tion
which
promises
to
have

during the last
the financing ar¬

debentures, they will be obligated

Exchange

BROADWAY, NEW YORK 5

American

develoo-

$120,000,000 of 3 \'a % Convertible
Debentures, convertible into com¬
mon shares at
prices ranging be¬

•pfcpONNELI&rO.

to

recovering oil
from shale" (1955 Annual Report,

12

Since 1917

New York

most

ment for Union Oil

SCRIP

&

drawn

by

crude

primary factor in the industry.

Specialists in

then

which

California

the

shares

Established 1920

is

oil

a pipe.
It is, however,
Oil of California's process

statistics and past performance the

Corporation

York

Louisiana Securities

&

Rudy,
Assistant
Investment
Manager,
Farmers
Insurance

rock, after which

Union
Union

New York Hanseatic

the shale

face

New York City

headline

"Try HANSEATIC".

Osborne

General Controls Co.—Richard W.

GOTTFRIED

seasoned help is important,
traders quote our

Alabama &

Selections

Hoheq'berg,

Partner,

nor

Thursday, September 5, 1957

Week's

Union Oil Co. of California—Gott¬
fried
von
Meyern

particular security.

a

.

Participants and

Their

the value of Experience

on

120

This

Forum

.

.

39

NewYork4,N.Y.
SAN

FRANOIBOO

*,

Volume

186

Number 5670

.

.

The Commercial and Financial Chronicle

.

(1003)

"Challenge of Tomorrow"

INDEX

By THEODORE J. KREPS*

Articles and News

Fundamental Questions That Wert Not
Asked
—Walter E. Spahr

Graduate School of Business, Stanford
University

leading business economist describes five powerful economic
said to "challenge tomorrow with the
prospect of a

revolutionized

—A. L.

new,

of the individual and the rise of

The Stock Market

Future of the

Cautions

business

not

to

Your Car in

forget

a

political
Who

is

wise

who

ahead

can

to

enough

see

to

assess

sufficiently far

know

what

lenge is going to be?

the

chal¬

What kind

than

utilization
nomic

the

ever

of

broad-visioned

statesmanship

and

challenge?
Military?

eco¬

execu¬

of

Ch alien g:e
to

whom?

the

trade

The

"Survey"

officials? To

Perhaps the most revolutionary
force in the world today is the

business

conscious

executives?

for

Or to you and
to me?

is

be

on

a

Kreps

20 years from

specific,

particular

activity
field

or

Or in the next
more

—

in

century? So
may

facet

namely

which

not-quite

I focus

of

human

economics

—

a

ignorance is
appalling as in other

as

my

of

areas

learning? In that field
may I
turn a mildly analytical
microscope on about five of the
interacting

many
work

in

each

the

with

NATURAL GAS

in Steel

12

Prices, Aver

Brubaker, Spokesman for Union 14

forces

American

at

now

economy,

rapidly

striving
standards so

living

life.

of

It

American

is

eco¬

petitive

fervor

of

the

world

DIgby 4-4970
"

39
36

As We

See It

(Editorial)

com¬

munism.

Bank and Insurance Stocks

the

Business Mail's Bookshelf

40

of

the

plenty.

They

American

see

They demand answer and
performance from their political
what

From Washington Ahead of the
News—Carlisle

may

envy or hate, these leaders have
to
promise progress toward an

Assoc.*
17

economic

*

Mutual Funds

executives

NSTA Notes

states¬

manship during the next 10 years?
As I

see

it, there

are

five major

kinds of economic forces

at work

official

These

are:

in

(1)

levels

the
of

great

real

be,

ex¬

fabulous.
able

1933; (2) the organizational revo¬
lution
coupled
with
corporate
gigantism; (3) the acceleration of
technological research and inno¬

average

over¬

sovereignty

an

adequately

powered

and

as

in¬

formed

regulator of the economy;
(4) the managerial revolution and

the rise to supremacy of a
triplyreenforced, industrial—political—
military power elite and (5) the
cold-war,
communism-capitalism
competition making more neces*An address

ford

Sixteenth

by Professor Kreps before
Business

The

been

has

increased

Our

mortality rate
by three-fifths. The

life

expectancy

male

has

of

incomes

to

meet

States

1929
at

Bureau

increased
to

of

only

families

in their
these

now

have

an

have

electric

.

and

.

rollment

has

doubled

Continued

and

on

of

Washington

and

30

Altamil
34

Corner

9

You—By Wallace Streete

will

page

Industry

7

You

Federal Uranium

*Column not available this week.

23
Twice Weekly

1

Diapers'
c/o

Gardens,

Edwards

Reg. U. S. Patent Office

25

TELETYPE N. Y. 1-5

•

•

Nashville

Boston
•




•

Chicago

Schenectady

•

•

Glens Falls

Worcester

Reentered

COMPANY, Publishers
New

York 7, N. Y.

ary

25,

1942,

Other

Thursday, September 5, 1957
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬

state

Other

Chicago

Offices:

3.

111.

135

South

La

(Telephone STate

quotation
clearings,

St.,

2-0613);

in

post

office

Sabre-Pinon

Eng¬

*

Prospectus

on

Request

Febru¬
at

New

Canada,
Countries, $67.00

Bank

$40.00

and

per

Note—On

States,

eign

fate

U.

S.

Members

of

per

$63.00
per

year;

per

in

of

WHitehall

—
Monthly,
postage extra.)

the

of

fluctuations

in New

York

funds.

3-3960

Direct

PHILADELPHIA

Wires

to

DENVER

Id

exchange, remittances for for¬
subscriptions and advertisements must

be made

BROADWAY, NEW YORK 8

Teletype NY 1-4040 & 4041

Record

(Foreign

account

INCORPORATED

39

year

year.

Publications

Quotation

year.

m V. FRANKEL & CO

Rates

United

of

Other

the

Salle

matter

Possessions,
Territories
and
Pan-American Union, $60.00
Dominion

statistical issue — market
cox-poration news, bank
and city news, etc.).

the

at

Subscription

President

records,

C.

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

to 9576

SEIBERT, Editor & Publisher

WILLIAM DANA SEIBERT,

E.

Smith

second-class

as

Subscriptions

plete

Albany

DANA

Place,

REctor 2-9570
HERBERT D.

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

B.

Park

London.

&

Copyright 1957 by William B. Dana
Company

FINANCIAL CHRONICLE

WIIXIAM

Members New York Stock
Exchange

Reeves Soundcraft

40

'

PREFERRED STOCKS

Spencer Trask & Co.

Radorock Resources

2

land.

25 BROAD

Narda Microwave^

en¬

Published

have specialized in

Corp.*

16

The COMMERCIAL and

For many years we

Dallas

*

Salesman's

.

Los Angelas

21

Registration..

The State of Trade and

lights,

97% have radios. College

University, Calif.

.

The Security I Like Best__

of

equity

homes. Over 99%

own

homes

Conference, Stan¬

Securities

The Market

Exchange PI., N.Y.

Chicago

34

___.

nearly double that figure

the present time. Over 55%

the

Report

Prospective Security Offerings

in

41%

inc.

Philadelphia

Labor Statistics

from

40

Direct Wires to

18

Railroad Securities

the minimum health and decency
levels worked out by the United
has

Governments

Securities Now in

Request

Teletype NY 1-1825 & 1-4844

4

__.

the

increased

sufficient

on

Reporter's

on

Mackie,

HA 2-0270

19

Public Utility Securities.

from 51 years, in 1929 to nearly 67
at present. The percent of families

with

&

12

Our Reporter

almost

Request

Singer, Bean

almost

capita dispos¬

per

Prospectus

37

News About Banks and Bankers

infant

cut

American

and
the

Real

income has

60%.

vation which together have
thrown consumer

abundance

is

7

38

Observations—A. Wilfred May
here

Bargeron

Indications of Current Business
Activity

approbation,

and

power

record

living standards touched off
here and throughout the world in

and

whether

America

last 25 years.
The

income

toward

similar to the explosion in Amer¬
ican living standards during the

shaping the world of tomorrow.
plosion

attitude

Electronic Research

t Report on

may

Racing

Common & V.T.C.

„

8

Einzig: "The Common Market, Sterling and German Mark"

the

political
be or the system of
governments—no matter what the
party

San Juan
.

Dealer-Broker Investment Recommendations

leaders.

matter

No

Teletype: SU 155

Pacific Uranium t

17

achieve¬

ment.

and industrial

<

Sylvanite Goldt

16

Coining Events in the Investment Fie!d___

midst

JCY 1160

Exchange PI., Salt Lake City

Cover

_.

People everywhere are
challenging poverty and want in
clearly

HEnderson 4-8504

Teletype:

Regular Features

com¬

what these selected economic fac¬
tors
may
portend for- business
economic

Exchange PL, Jersey City

DAvis 8-8786

expanding
growth potentials? And, by way of
forecasting, may I explore a bit

and

1

27

(Letter to Editor)

potent force
in China and

a

America, and

Spokane Stock Exchange

ig

Ernest R. Gutmann Opposes
Fixity in Price of Monetary Gold

the obsession for industrialization

Latin

Members Salt Lake City Stock Exch,

___.

generating unrest
India, turmoil in the Arab world,
in

J.F.Reilly&Co.,Inc.

16

Guaranty Trust Co.

Louis .T. Lefkowitz, New York
Attorney General, Cites
Fraudulent Stock Sales in Rural Areas..

intensified

characteristic
Iheodore J.

A year hence? Ten
to

higher

nomic

when

tomorrow?

now?

and

CHEMICAL

3 STATES

*

Real Causes of Inflation
Analyzed in

Living Standards

government

And

18

Explosion in American

To

GUARDIAN

15

*

David J. McDonald and Otis

union

CHEMICAL

Fast-Changing Economy

Leading Canadian-U. S. Industrialist to Be
Honored.

To

leaders?

HYDROCARBON

Survey

other

fellow?

a

Steelworkers Not to Blame for Rise

superior achievement.

To

REEVES SOUNDCRAFT

More Than Half of U. S.
Families Now Own Homes,
According to University of Michigan

these five problems a stepping
stone to more united effort and

Economic?

9

Outlook—Roger W. Babson_____

*

Unparalleled opportunities arise
challenge to make each

STREET, NEW YORK

8

13

The 1957 United States
Crop

from the

Pol itical?

WALL

io

tive leadership.

of

McKinley...

Libby

Making Accounting Meaningful in
—Marquis G. Eaton

imaginative

obsoletes!

Telephone: WHitehall 4-6551

6

.

—Loring K. Macy

power.
sary

F.

for

devilish

Obsolete Securities Dept.
99

Our Government's Role
in Private Trade and Investments

enun¬

designed to prevent fusion of economic and

program

5

in Today's

Uses and Savings of
Isotopes and Our Atomic Future

—Willard

get cash

those

4-

Thousand Garages—Dr. Ira U.
Cobleigh

a

—to

3

Hughes

County Bonds

Another Look at Bank
Reserves—David H.

Founding Fathers' principles, said to be exemplified in the
small business philosophy of
self-help, equal opportunity,
freedom of entry, economic and political
freedoms, and

and

Money Market—Walter W.
Craigie

Government; (3) demise of the consumer as an economic
regulator; (4) rise of a new labor, military and industrial
managerial power elite; and (5) cold-war, communismcompetition.

J. Kreps

Outlook—Anthony Gaubis

Financing Municipal

second only to

power

the

ciates

.

Stock Market—James F.

labor, manufacturer and other

corporate "leviathans" with economic

,

SIMPLY HEAVENLY
Cover

—

"Challenge of Tomorrow"—Theodore

coming world, Professor Kreps perceives: (1) pressures gen¬
erated by changes in real
living standards; (2) deterioration

capitalism

Mills, Jr

AND COMPANY

Cover

Meaning of Membership in the Federal Reserve

unless business leaders successfully
evolutive phenomena. Shaping the on¬

economy

with these

cope

and

1

____

forces

ItCHifnsifid

-

Page

•

Professor of Business Economics

A

3

SALT LAKE CITY

Financial Chronicle

The Commercial and

.

.

Thursday, September 5, 1957

.

(1004)

4

the

patriotic

legalized

-a

sucker-

The Stock Market Outlook

affair."

Observations

.

.

.

Again we have a bevy of pub¬
decrying the Savings

lic comment

the
immmmmmemmrn

namely

which

robbery

alleged

the

over

complaint

the

including

Bond,

namely sav¬
ings accounts and Savings Bonds
—against
only
24%
preferring
fluctuating and "less liquid" and
"less
safe"
fluctuating
assets,

has

that

(3)

ther

the

common

vast potential for fur¬
stock distribution.

a

*>

'

interval

>'t

from

ity.

spring
for
«™--z

the

Now
-

board
dis¬

the

and

cussion

fm v//

complaint
A.

Wilfred

May

the

is

Reserve

Board's

cur¬

lists

preferences

have

taken

peso

also

continuing un¬
der
purchasing power erosion,
through holdings of other money

declines

Incr. iii val.

place over the

The
those

race

"Survey"
finds
that of
owning Savings Bonds and

sionary"

goodly
not

people

of

number

their

"just-as-illu

and

ary"

savings, being

didates

possibly they believe that the
dollar may not alwa$$ be going:,

serving

world's popula¬

tion

have

being robbed:

felt they were

units,

currency

two-thirds of the

current

non¬

can¬

devaluation.

for further

or

one-way.

Bonds

kets at much lower than their of¬

Redemptions pf Savings

were

withdrawal

less
fro

than

frequent
m

savings

world's free mar¬

in the

Listed

ficially

ac¬

Pick

decreed

terms

values,

par

their

counts; with only 27% of all own¬

legal

rates

Mr.
as

—

-

the

of

trebling

Venezuela
with

economic

ZUELA

dec¬

past

raising

of

activities, is thoroughly

in

shown

the

current

the

volume,

new

a

Bustv.ess

—

and

VENE¬

Finances,

Prentice
Hall 067 paces, S4.95).
Mr. I.uzarc'o, formerly Chief of the Bu¬
Luzardo,

Rodolfo

by

Economic

of

reau

Venezuela,
many years
leum
Corp.,

in

Research

for

connected

and

Petro-:

Creole

with

gives an invaluable
study of the rapidly
Venezuelan economy,

up-to-date

I

opinions

for

of

an

it

one

Anthony

Gaubis

themselves

expose

to

1953.

1956

January

that

the end of

which
at

a

York

New

Chronicle),

believed

I

re¬

was

in the Com¬

and

Financial

&

course

the

both

in

(as

can

this

last

13

major bull

by the spring of last year. Events
that time have shown that

since

about
upper

to

with

boar

in

the

at
the

Dow-

reaching levels

14-15

or

real

situation

times

selling

and

basis of 4%

but I find
with

a

will be avoided

The

equivalent

on

boom

yield

a

less, has been def¬

initely in contrast with the 19471949 fundamental

that

time

pent-up

the Dow-Jones Industrial Average

mar¬

along

go

months,

mar¬

likely to run its
around the 520 level in

my

of those

talk

that

Industrials

joying

was

I

area,

to

or

time.

were

we

when

think

who

Jones

that

reverse

distribution rather than

a

earnings,

Tribune

ket

time
inau¬

level being the

impossible

market

dangers of being greatly unof 100%
of
the
type witnessed

near

the

was

course,

the

accumulatiou

those

more

stated

520-525

limits of

Herald

I

by

widely publicized

students

the

pro¬

of

are

many

ket

or

empha¬

mercial

realize,

are

ported

production

oil

over

__

80%

Eisenhower

were

advance

an

year.

some

In

10

on

ad-

chronic

since

60

Industrials

in

gurated

with

who

-

20

Ohio

than

ex¬

the

or

Dow-Jones

more

President

derinvested during a rise

v,__

was

d

therefore

10

level

an
e

those

40

Dutch

Cicole Pet._-:

ade.

rec¬

15

Service

160-165

January, 1953, and of
about 225% by the spring of- last

vance

size

42

The

of

equities

after
tend

over

The

ready to "take off"

approach, and

McGee

Oil

the

is

40

—_

Ohio

in

of

accumu¬

period—on Oct. 30, 1946, to

exact.

but not penetrated, on
three subsequent occasions before

sales

ommend

be

fessionals who

15

110

Kef

Shell

further devaluations

continues, with 40 or more "illu-

savings accounts in 1956, as many
showed expansion as contraction
in their holdings in 1957.
So a

30
60

Std.

willing to

lation

There is also touched,

any-

who

one

with

48

Cities

associate

pessimism,

—

popular, except
is close to (or

past) a cyclical low.
a
tendency to

their

Gulf

toward

capital gains.

bearish point early part of this broad

a

never

market

16

Signal Oil & Gas

Poval

is

the

13

Sunray

Kerr

know,

you

view

of

when

10

Seaboard
Atl.

As

•

—80

_______

Hancock

past

rates.

record

take advantage of later opportunities for

to

power

substantial

notorious

90

Superior

12 months, Mr.

the past

buying

15

Ini'l Petroleum...

(58%).

loss

if productive it dry

Company'

15%.
Within

Est. %

I st. max. %

decade Pick reports, 11 full or partial
there has been a substantial, in¬
devaluations reduced the official
crease in the proportion of spend¬
value of the monetary units of
ing units holding both checking Bolivia,
Colombia,
Czechoslo¬
and savings accounts.
And infla¬ vakia,
Hungary,
Iran,
Poland,
tion-affected life insurance sales
Spain, Turkey, the U. S. S. E.;
and holdings have gone ahead at
Uruguay, and Viet Nam. And the
the

During

assets.

possible relative impact of

discoveries in the vast Maraicaibo acreage
on
their common
stocks' value of leading companies:

The U.S.
dollar has concurrently fallen by

fered, and are so

Stock Ex¬

Here is its rough estimate

new

Brazilian cruzeiro
Italian lira
(25%;), and

Greek drachma

contained

is

concessions

the New York

of

of the

(45%),

(70%),

have equally suf¬

oil

Foreign Letter for August
JBurnham & Company, mem¬

bers

decade in the French franc
(52%),
British
pound
(34%),
Mexican peso
(45%), Argentine

in the popu¬

behavior

and

sensational

of the potential in¬
significance of Venezu¬

the

change.

past

larity of Savings Bonds.
But this survey of consumers'
shows that they

the

which

issued
1957 "Survey of
Consumer
Finances" which re¬

rently

ports some: decline

Pick, currency expert,

political

A summary

vestment

of

book. Franz

be¬

chiefly

—

domestic

the

cessions.

in

picted in the currently published
edition of Pick's Currency Year¬

resources

of

Denies validity of popular

averages.

assumption of effective potential support from mutual fund
and other institutional buyers. Urges husbanding of adequate

liabilities involved in foreign con¬

elan

Speaking further
of savings,
their expropriation on an inter¬
national sale is graphically de¬

continue to
the development of

on

oil

their
cause

EXPROPRIATION

matur¬

to

V

malinger

30% in the market

to

and Argentina

years

majority of stocks accompanying such set-back of 25%

in the

clamoring for foreigners' oil

now

INTERNATIONAL

the time ol' is¬
sue

assets;

fixed-value

in

with

oc¬

in

curred

ingrained

confidence

i ation

p r e c

(1) the citizenry's

permanent

parently

the dollar, de-

old, Mr. Gaubis maintains re-accumulation
stage must await a further fall to the 375-400 area for the
Dow-Jones Average, with declines of at least 40% to 50%

already two

home, with Bolivia

vestors feel at

Brazil

continuing stake in various assets
vulnerable to inflation; (2) an ap¬

the

on

buyers via

Counselors;

Timing Service"

"bear market," which he contends is

In fathoming the present

posing views toward foreign capi¬
tal among Latin American coun¬
tries
is
significant.
Cuba and
Venezuela have made foreign in¬

real development. On the other hand,

and

stock

common

Thus we see

perpe-

trated

assets,

estate.

Treasury

has

value

fixed

THE
PEOPLE'S CHOICE

Investment

Company;

&

Publishers of "Business and Investment

international

of

field

the

Gaubis

Anthony

investments the diametrically op¬

By A. WILFRED MAY
AND

By ANTHONY GAUBIS*

OIL

AND

DEVELOPMENT
In

INFLATION

CAPITAL

FOREIGN

when

our

the

background. At

economy

benefits

demand

the

was

of

for

en¬

large

a

goods;

Dow-Jones

and

Industrials

fluctuating at between 7 and
earnings, with yields av¬
eraging over 6%. (In this connec¬
tion, it Is important to- avoid the
common
error
of including the
were

10 times

this prediction was not far off the
mark, particularly if we are will¬ market value Of stock dividends
the Dow-Jones Av¬ in judging yields, as such "pay¬

ing to accept
erages

reasonably satisfactory
measures of

as

imperfect)

if

(even

ments"

cash

be

cannot

converted

without

holder's

diluting
equity.)

the

into

share¬

often only "expressions of illu¬
.
* • *
"the
market
as
a
whole."
To
Savings Bonds redeeming
expanding
My present "reasoned guess" is
bonds in 1956. Despite the sion" or of "political inferiority'' with an account of the country's date, the highs for the Dow-Jones
Industrials were recorded on April that the distribution phase of the
postwar decline in importance, complexes" of stubborn dictators vast resources, as well as techni¬
has been completed, and
cal analyses of the country's long- 9, 1956, when the intra-day high cycle
including fanfare, of the "War or ministers of
finance, who do
was 524.37; while the peak for the
that we will not enter into a reterm economics.
Bond" drives, about 14% of all
not
want
to
acknowledge
the
accumulation area until the Dow❖ •
#
*
companion Railroad Average was
spending
units
still purchased
reached on
May 9, 1956, at an Jones Industrials decline to or
power of free or black markets.
savings bonds in 1956.
NO SPECTATOR
375-400
price
area.
intra-day high of 182.54. However, below the
The
PARTICIPANT—HE!
cynical - enforcement
of
Fifty-eight
per
cent
of
all
if we use any of the other aver¬ Quite- frankly,
this is a highly
"Exercise is
as
monetary debasement, Mr. Pick
important for
spending units with incomes of
ages as a measure of the market tentative estimate, and is
based
everyone as eating, sleeping, and as a
whole, or if we judge "the. on my anticipation of certain de¬
$3,000 or over expressed, a pref¬ goes on to say, "makes theft —
working," says Dr. Paul Dudley market" by the action of a clear
velopments which I shall enumer¬
erence
for one or both of the from the widow, the orphan or
White,
noted
authority on the ma jority of stocks, we still cannot ate shortly. I can see the possibil¬
heart
and
medical
adviser
to
avoid the conclusion that the bull ity of a decline to between 300
President
Eisenhower,
(inter¬ market
high to date was reached and 350 but I -believe that such
viewed in U. S. News & World
iii the spring or summer of 1956 an extreme setback will be wit¬
Report).
—or .more
than one year ago.
I nessed only if and when we are
Applied to
work
as
well as mention this only because it is forced into another war
or
i
exercise, this principle is vali¬ very important from a "Timing" there should be some other catas¬
dated by the living- experience of standpoint,
and
particularly
in trophe of the type that none of u
Frederick
H.
Ecker,
who
now view of the substantially different can predict or anticipate at thi
We are pleased to announce the
enters his 91st year and is on his conclusions which might be drawn time.
For one thing, I have
in
55th
opening of an office in
year
of
service
for
t-he as to future prospects if we fail mind the fact that many high
Metropolitan Life Insurance Com¬ to realize that the bear market is grade stocks, including duPont
ers

of

t

any

—

Still

pany.

NEWARK

as

NEW

JERSEY

a

BROAD

STREET

...

-•

-

:

MItchell 3-7500

•

H.

Hill, Jr.

Resident Manager

W. Halsted Taft

Registered Representatives
Complete facilities for conducting a general
investment and brokerage

business

entering
some

of

growth

to

too

the

many,

Mr.

that

Members Principal

15

BROAD




Securities Exchanges

STREET, NEW YORK 5

of business." Not so

his

son,

Ecker's

any

certain

W.

more

line

seems

Ecker,

the

company's present President, who
with

a

seemingly raised eyebrow,

rejoined
Other Offices Coast to Coast

Frederic

seeking

"the

competition the better in

Hemphill, Noyes C&, Co.

now

are

pickings in that

came

rejoinder

quick

would

action."

with,
be

Sears

not

Paper, and Kennecott—to nam
only a few—have already de
clined
by
25%
to
40%,
eve
though the Dow-Jones Industrial

just two months old, as some
financial writers would like us to
believe.

"You

Father's

,

Liquidation Area Since 1956

personal conviction that
stock market has been in a

broad

liquidation

Dow-Jones

the

know,
typical

bull market
1956.

In

bilities

proba¬
quite strong that this

are

zone

the

will prove com¬

(in reverse) to the accu¬
area
of roughly 160 to

mulation
190

in

the

which

Dow-Jones

Industrials

witnessed

was

between

October, 1946, and in the summer
of 1949.
During that period, the
extreme

low

Industrials

for

was

the

Dow-Jones

recorded

in

the

that
re¬

*A

York
York

Specific

and

opinion,

talk by Mr. Gaubis before the New
Society of Security Analysts, New
City, Sept. 3, 1957.

than

one-half

dow

way

to the 375-400 level.

since

highs in the spring of

my

distribution

parable

ever

Industrial

area

Averages recorded their

Internationa

Roebuck,

less

are

It is my

Railroad

field

life

easy

area,

question
including

our

companies,
the

already more than a year old, and

the

sports.

or

Incidentally,
whether

Ralph W. Voorhees

to
guests

disbelief in
the spectator role in either busi¬

property
Sherman Kane

vouchsafed

firm

his

week,

ness

Roland

and

golfer,

his 90th birthday luncheon
last

Telephone:

active

Ecker

Mr.

office,
744

an

Honorary Chairman putting in
ten-to-six
workday
at
the

My
cline

reasons

Bearish

below

to

Reasons

for expecting a de
in

400

the

Dow

Jones Industrials, and for my ten
tative estimate of probable suppor
at

cf

based

are

on a

of tha

combinatio

Technical,

Fundamental,

Timing

to 6%

about 5%

within

level,

Studies,

as

well

an

as

o

Psychological factors which, whe
combined,

have

a

"batting aver

age" of at least 75% to 80%.

Lim

itations of time preclude my goiiv
into

the

conclusions

Continuecl

drawn
on

frorr

page

2

Volume

186

Number 5670

.

.

The

.

Cojnmercial and Financial Chronicle
(1005)
stock

Maiket

market

periods
rates.

By JAMES F. HUGIIES *

of

--

following sustained
advancing ; interest
years later I de¬

Several

cided to substitute major declines
in
commercial
bank investment

Auchincloss. Parker & Rcdpath, Members N. Y. Stock
Exchange

holdings for the interest

Market analyst cites

because
the record
showed
that declines in bank investments
had successfully forecast the de-

factors, including credit developments, as supporting the conclusion that April 1956 peak marked final
phase of the major bull market. On the technical considera¬

,

tions

other

reach lower average

levels than

opinion

my

the fu¬

on

background.

Very

activity below normal
usually forecast rising prices.

few

Ayres's Blast Furnace

would
understand the
people

for

reason

opinion
said

"if

the

on

I

blast furnace index.

bearish

been

formance

major

trend

oft h

stock

d

n

t

u s

i

r

a

1

breadth

Hughes

i^h.

index

part

zontal consolidation

1946-1949

to

the

cause

action

of

the

index still indicates

jor

trend
is

1957

is down

It
tor

call

conceived

by

Ayres

the

at:

Company

Col.

Cleveland

after

tbtvmjmber of stocks that had ad¬
declined:

remained

ami

unchanged in .each session of five
consecutive:

New

York

trading days

the

on

Stock: Exchange. \ In

presenting- the results of his- pio¬
neer.:: work
next

to-

his

associates

the

morning Col. Ayres said, "X

think: this will make

interest¬

an

ing stock market statistic."
I

the

When

start

blast

this

Bulletin

to

appeai-s

easy

to

to

tic"

was

role

-

in

-

.

statis¬

destined to play a stellar
a

.

economic

of

sequence

trends

reflecting major develop¬

ments

in

the

business

the early 1920's it

accepted

theory

trends in stock

sult

reflected

knowledge

of

In

generally
major

a

that

prices

cycle.
the

the

were

of the market's wisdom.

wisdom

the

the

ture

from

all

ability to forecast the fu¬

trend

However,

of

business

activity.

result of work done

as a

during 1924, Ayres finally decided
that major trends in stock-prices
were
not thgi .result of thej mar¬
ket's infinite; wisdom.
n
1
study * completed

of

in

1924 which showed

turning
bond

*

points

markets

imated

business

the

in

the

activity

rose

rising

above

1892 to 1924

ish

was a

be

current

indication

markets,

is

for

the
a

York

3,

talk

approx¬

general

above

195J._

[

,

■

-

j

aggressively until 1920.
more,

of.

retroactive

a

the

breadth

Further¬

investigation

performance

from

securities

decline

Analysts,
.

,

.




Major Top Indicated
This made

1937

June 1948

Apr.

ognize

1919
to 1947, showing that four
import¬
ant tops in the stock market had

foreshadowed by

in

it very "easy to rec¬

was

major top in the
being indicated. How¬
ever, in view of the prevalence
of a rather violent4.New Era
psy¬
chology it wasn't too easy even

In view of the record from

been

that

market

195G

a

clines in bank investments and ul¬

to suggest that the New Era stock
market was running into trouble.

timately by

Finally I worked

major de¬

vergence in

rates

advance

a positive major di¬
the trends of breadth

and

was

in

price, it

age

relatively simple

April 9,

April 1956 to recognize that a
peak was being indicated

"Stock

major
in

the

stock

market.

During

to release

a

1956

up

security prices to

Facing

Continued

After

the

blast

furnace

had emphasized the

index

^iiow

importance(oi:

-:T

•/i

-ihc major trends
security prices, the next logi¬

interest rates in
of

cal

step was to relate the

serving investors in 42 cities

'

„fbr

it:-

course

of

money rates, .directly
to the
trend of the securities markets.

Unfortunately, despite

more than
of work it proved impose
sible to. construct.aii- honest index

a

year

of interest rates

tha,t did not oh

TV

~'

T

T

•'

'

1

merger

a

of the business and personnel

number of occasions;rniss absolute

Mi;:.'

highs and lows in the; stock,mar¬

other

economic

it

a

more

was

*

''

.

t

viv "

•

CENTRAL REPUBLIC

nical evidence based

on

DEAN

the action

time

closely actual reversals in
of stock

COMPANY

was a?)-

major turning point,
logical to use tech¬

of the market itself to

trends

C<

relationships

indicated that the market

proaching

'r

WITTER

&

CO.

more

Effective

major

The
This

September 3, 1957

prices.

1926

Situation

With offices in 42 cities, the

about how

things were
early in 1926 when Ayres decided
to devote an evening to the sta¬
tistical project of counting the to¬
tal

was

number

adding
that

issues

of

advanced,

mained
know

really

the

at

had

of

declined,

unchanged..

it

traded

the number

up

sunplied

in

Sept.
M,

as

underwriters,

brokers, dealers and distributors

by

stocks

and

re¬

We

time

merged firms will offer

complete investment services

did not
Ayres
the missing

Dean Witter & Co.

but

*

4

t

Consolidated with

link in

and

then

kets.

Central Republic Company

confirm

turning points in major bull

mar¬

Members: New York Stock Exchange

economic
with

Pacific Coast Stock Exchange

American Stock Exchange

.

We had

already mapped out

Midwest.Stock Exchange

an

which

in

Chicago Board of Trade and other leading commodity exchanges

followed

wholesale

by

commodity

commercial

bank

jor problem

timing

of

was

the

began

produced

bond

and

prices,

loans.

in

in¬

finally in
Our

ma¬

the moi;e precise

downturn

in

SAN

FRANCISCO

•

LOS

ANGELES

NEW

•

YORK

•

CHICAGO

a

stock

declines

Honolulu Stock Exchange

an

in interest rates

ultimately

downturn

prices,

that

sequence

advance

the

Beverly Hills

Honolulu

Oakland

Omaha

St.

St.

Louis

Cedar Rapids

Boston

Galesburg, (III.)

Santa Barbara

Paul
'•

Kansas City

Palo Alto

Philadelphia

San Bernardino

Santa Monica

Denver

„

Long Beach

Phoenix

Seattle

v

Stockton,

Reno

San Marino

TacQma

Fresno

Everett

Milwaukee

Portlcnd

San Jose

San Diego

Santa Rosa

Eureka

Des Moines

Laguna Beach

,

on

Minneapolis
Sacramento
Santa Ana

Ventura

,

Important

on

Dean Witter & Co. Offices

fall."
■i

cour¬

under the heading,

Market

the

enough

market letter

rates begin

money

.

or

by Mr. Hughes before the New

Society of Security

to

Mar.

When industry recov¬

dustrial production and
*A

interest

1954

-

cumula¬

foreshadow* '

and

generally bear¬

whereas

Nov.'' 1919

Sept. 192!)

,

in¬

major

stock

normal

1919

of

that

was

fell below statistical normal. Busi¬
ness

Oct.

July 1929

bond

as

spring

that

'

May 11)19

Ayres

course

the

frequently,

months

not

the'chain of economic and
technical developments that would

Accelerating this decision
a

Industrials

dominant fac¬

rates

money

normal,

This

composite

traders

D«»v-Joncs

Index

June 1928

Oct.

trend despite a continued advance
in. the industrial
average.

-

Breadth

re¬

the world and gave the mar¬

over

ket

was

!

not the discount¬

advance and

and

market

f

Investments

of

ket by many months. .As this fact'
'As things developed in the years
^became obvdpus Ayt^ reluctajitly;
following -1926 'it gradually, be¬
decided that when interestUrates
came
obvionsr that the Colonel's

"interesting; stock

peaks:n

The

trend

determining the
prices, as
well

to advance.

P.

Trust

1926,

stock market, after sustained- $39.1
billion
to - $49.3
billion.
liquidation by commercial banks Throughout *17 months of this
of investment
holdings, is shown period there was no major diver¬
in the following table
giving, the gence
in.- breadth-price trends.
months in which
investments, the However,, from March 15, 1956 a
breadth index and the Dow-Joncs
major divergence developed as
industrials established important breadth started a
sagging down¬

swings.

ers

Leonard

in. January

in

did

investments

tive, and, so long as they decline,
security prices of both sorts tend

you

lie had spent an evening counting

vanced,

of

highly
It was

a

the

When industry falls
normal, interest rates de¬
cline, and bond prices rise, and
so do
stock prices. The influence

Fortunate¬

ly the breadth index has
respectiable- background.

increase

which

their

by $10 billion, from $46.2 billion
to $36.2 billion, while
increasing
their
loans .$10.2
billion, from

below

be

to

"What is this thing

is,

breadth index?"

a

to¬

in April
1956,
reporting
member

reduced

which

statement would represent just so
much technical gibberish.
The
asked

a

October

industrials

the /-weekly

banks

statistic"

-

high; of the ^Dow-

ing of future business prospects
has long been held as the
determining factor in stock mar¬

con¬

ket

likely

that

the

high of the

rn

prices.

terest rates, and

"Breadth Index"

most

in

prices,

1956mere¬

range."

question

in

was

stock

For the vast majority of people
the above clear-cut and incisive

first

to

stock

and

ma¬

ly part of another horizontal
solidation

showed

Jones

"inter¬

problem of more pre¬
timing of the downturn in

cise

and

account,

was

conceded that "the

breadth

that

and

related

was

bond

be¬

the

that

major top and not

a

dex

hori¬

1951-1953

1919

1954

-

first pub¬
Cleveland
Trust

the

in

market

-

May 1948
M'ar. 195G

minor

bought,

Colonel's

Sep.1947

record-breaking decline in bank
investments
between
May
and
November foreshadowed the tight¬
ening credit situation far more
emphatically than the relatively

in

early Oc¬

the

However, the historical rec¬
covering the post-war bull
in

investment

Company Business Bulletin dated
15, 1924. In the Bulletin for
July 15, 1924 the course of the in¬

similar

range

and

be

stock

solved

give the impression that

and

in

esting

the

Jan. '1937

market

18 months between .the

Dow-

June

1956-1957

another

of

should

lished

bear-

Further¬

do not believe that

merely

the

sold.

furnaces

blast furnace index

I continue bearish on the
major trend of the' stock market
is

of

of

prosperous

be

well

July 193G

ord

that

the

from

ings.

per¬

furnaces

60%

was

should

number

curities

more,

and

of

and

•

banks liquidating their bond hold¬

dropped below 60%, business was
headed for a depression and 'se¬

the

turned

business

the

April 18, 1956,
because

execeeded

tal,

past

showed

number

securities

since

average,

the

blast

market,

reflected by
the Dow-Jones

The

record

when

e

as

i

Index

major divergence

a

breadth

-

industrials

How

bear markets and business depres¬
sions were caused by commercial

discovery of this relation¬
ship between securities prices and
the level of general business ac¬
tivity was responsible for Ayres's

have

"I

r

started with this factor it

seemed to

The

my

.

Investment

generally expected.

now

,

Col. Ayres refused to accept this
substitution because when the se¬

business

ture of the stock market I believe
it is essential to
provide some his ¬

James F.

are

rates.

Crucial Decline in Bank

quence

giving

torical

in money

including "Breadth-price relationship," Mr. Hughes disa¬
with assumption that 1956-57 action is merely part of an¬
consolidation range, and foresees market's long swing to

grees

In

velopment of important increases

revealed

tober to Nov. 3, the
high point in
the post-war inflation market.

ser¬

ies

historical impact of economic indexes

and economic

1

rate

1919

between
Jones

5

Visalia

page

21

v

.

W. Craigie & Co., Richmond,

L

that

exceed

will

issues

"everybody

I
T

sary

arid

spending and encouraging savings.

uniform

main

"I have no prob-

answer;

lemthat
e

Public

cure."

Prac¬

tically

every

be¬

tween the ris¬

thriftily,

ing costs of
operation
of
his
political

Do

b d i

s u

e n

age" of

It

a

sizable proportion of

income, have been turning to the
bond market in

an

attempt to

to ll/z%

interest rate

an

per annum.

coupons

high

top-quality

when

days

easy

bonds commanded

se-

Gone are

the needed funds.

Now-

of 4% to 41/2%—
5.%%—are to be

even

as

seen

on

all sides.

Some

officials

followed

as

the

who

not

have

markets
closely in recent months have felt
hnnH
bond

the

hnilCDC

ment,
JllVJIItg

.

money

,M™nt

ISSUes

St

ihWiJ

$l,*60,000 issue on

Bonds

and

Serablvina

'

should
centoh

coupons

somb

at

*
.

limited

Everybody seems to be living
borrowed money, and the supply just isn't equal to the demand,
Over the past 20 years with artificially low interest rates, thrift
has become something of a lost , ;
virtue.
Certainly, with, savings >
accounts paying only one-half of V
1% in some instances, there was Vi

be

higher

those

primary responsibil-

the

permits

nues

drink and be merry" aspect, and
«•,

psychology pervaded'tneir, thoughts.-'

a ®Hb^®

as

correct this unhealthy conditioii.
The cost of money is making
every business, every municipalily and many individuals pause
and ask, "Is this spending rieces-

he m entitled to yw.vi/ a year and sary?" Thus it is slowing down
is
vy $35.00
J
j
1
Aiivtw
not $34.10 or some such figure re- capital expenditure and easing the
bonds, maining after deduction of a col- pressures on . manpower and, in
.

some

fee.

The

legislation

time

of

bond

your

sale

a

oninciiittn

rniinininniitv

icipality.
tightness

issues

must

be

carefully

the

scarce

other

materials.

hand, these

same

high rates are providing adequate

bonds, i.e., noon, preferably on a Tuesday,
pledge of reve- ' Wednesday or Thursday. Sales at
being general > 8:00 p.m., may beVconvenieiit for

compensation to the saver,: that

of

what

is

addition to

long-suffering individual who has
seen the value of his savings account, life insurance policy, savings bond and, yes, even the maluring bonds of your own municipalities
shrink
in
purchasing
power nearly one-half since 1939.

.

Bond

cases,

On

two-way

as

High interest rates--as painful ■i
they are—are doing much to '

should be at either 11:00 a.m., or

issue

carrying
in

anyone

psychology of our
assumed a sort ".of "eat,

rale

uSt*lection
Virginia

particular incentive for

*9 .save*

a

carry
cailj

interest

obligation

general
taxes.

rcm

interest,

bond carrying 3

000

of pay-

sources

no

spof citizens

FederalReserve

,

invariably
111 V CtJL XCXIJI y

almost
cUlHWdt

known

is your

on

ity to see that your accounts are obligations, provided such revc-« a Town Council but they are an
kept in such shape that up-to-date nues
prove
insufficient to
pay ianathema to a bond dealer. •
and accurate financial informa- both
principal and interest. These
If all of this sounds as if it is a
tion always is readily available to
two-way bonds combine the bene- one-way track and that the muany bond house, rating agency or
fits of self-supporting pay-as-you- nieipality is doing everything for
potential investor who desired it. use revenues and the lower inter- the benefit of the bond dealer,
Do not wait until you are asked est rate available from
general you are right, but it is such as
to supply this information.
See
obligation bonds.
In fact, such lln's that makes for a better price
that it is sent to at least a basic
bonds are so popular with inves- for your bonds, and that is your,
number of these groups at regular tors that
they often command a job.
intervals. Tell them if the inforpremium
over
ordinary general
Assessment Ratios
.nation isn't adequate, you will be
bonds." Roanoke8Salem
Having covered the mechanics
glad to supply any missing data
and Newport News are three ex- of
Sales, let's look again at some
Careful Planning
amples of localities which have 0f the fundamentals.
Let's start

lepresent an insult to

nf

credit

a

^

materially

their bonds

politically inexpedient

or

to finance

adays,

Lnn J

lJJUJe

W. Craigie

Walter

e.

their

than

mu¬

capital expenditures from current

of 1%

fh

-f

actual need of
borrowing money to iiHuiiii poijuiiw\viii«
jnuii,u
inform i"'",

money.

possible

11

until they have an

ll i c i p alities,
finding it im-

the

»'

of

pres-

Many

cure

.

lion, especially to tne oona nous

"short¬

t

tell the world about it.
through a year-in and

this

ah

the

and

Information

year-out policy of public iriformaI

even

your

bond house is the merchandiser of
the securities and not the perm anent investor. It must reoffer and
sell its purchases promptly, arid
many a bond house which lias
made the mistake , of leaving its
bid out overnight has awakened
the next day to find it has a siz•le loss on its hands,
able loss on its hands.

city. This is for the convenience
of investors in collecting their
restrictions or for other reasons, coupons.
You should expect to
issue revenue bonds, i.e.,
bonds pay a fair fee to your paying
payable solely from the earnings agent, and the paying bank should
of a particular project such as a under
no
circumstances deduct
waterworks system,
any
fee or exchange from the
sewage sys¬
coupon. If an investor buys a $1,tem, etc. Revenue bonds, ,because

ision

v

you

April 15, 19d8.

municipalities, in an attempt to evade constitutional debt

Next, it is important not to hide
your light under a bushel basket.
If you are doing a good job, have
run
your municipality well
and

municipal of¬
ficial is being
caught

want to do
leisure
£jgure out the added interesl
If

little arithmetic in

Many

taxes.

won't

money

to 30 years.

one

nomic resources. You alone can- time
not control your municipality s cost'of
expenditures but you can counsel
against unsound programs unbal,
anced
budgets and inadequate u

municipal treasurer
problem is these
days and you will get almost au
any

his

what

3:Yi%

a

whereas it probably would
4% to sell one to 25 years
AV\% if the issue ran from a

cost you

a

Ask

command

might

years,

rate,

why money is as tight as it is.

ing a bid out more than a couple
of hours. Keep in mind that the

extend the

maturity.
In other words, your
issue, which matures in one to 20

borrowed money, and the

to be living on

seems

a

full one-fourth

for each five years you

supply just isn't equal to the demand." High interest rates
are viewed as playing the double role of correcting unneces-

1

As
a

the

over

$7,100,000,000 and that

will amount to about

add

can

oepieiliuef D, iyoi

table dealing is certain to pay This entirely ignores the financdearly tor it.
nig problems of the United States
Once a bid has been presented, Treasury, which found it necesit should be accepted or rejected sary only a
w!rej\s a?,?do pay
promptly. No investment banker an avera2e rate of 4.174 % for an
wants the market liability of leav- issue of Tax Bills maturing on

rule of thumb, you
of 1%
entire life of the issue

20 years.

Anticipates 1957 municipal bonds
new corporate
amount substantially.
Points out

successfully.

bond issues

dulges in this kind of under-the-

run

equal instalments of from one to

Craigie in the course of advising municipal treasurers
and other officials on what they should do in order to finance

Mr.

-

never

beyond the lite of the expected
improvement. The best rates can
lie secured for issues maturing in

Virginia

of municipal financing are exposed by

and pitfalls

Errors
>

should

issues

Rond

WALTER W. CRAIGIE*

By

Senior Partner, F.

iuuisuaj',

ing all bids and then almost im- New corporate issues will exceed
mediately selling the bonds at vir- that amount substantially. Add to
tually the same price to some that the borrowings of individuals

house, new hospital, new school,
park or whatever the improvement may be, they must pay for

Financing Municipal and County
Bonds in Today's "

.

For the first time in 25 years there

is an inducement to save, and saving means denying one's self today in order to have a better life
tomorrow.
Therefore,
before
you
say,

made excellent use of the two- with a very touchy subject, namebonds. On
hand, iC IjVassessed valuations. The ratio
bonds- 0,1 the other hand> if ly, assessed ^u^ions'^e mifo
must un tn
strir*tlv
must go to a strictly revenue 0f assessed valuation to estimated

planned, well advertised-and, if vrm
planned," Well advertised 7andT"if way
possible, not brought to market you

rf>\mnnf»

..

e

+

3

.

"Damn
that
Federal Reserve
Board for making money so
tight," stop and consider the facts.
B is excess borrowing, not the

Federal Hip tioht Board,"whichnnlv
Reserve Board, which has
r>roatpH
Thp
created the tight money. The only
mnnnv

more frequently than once a year, .bond, be prepared to pay a mate- true value in most Virginia mu- thing the Fed has money into the
Actually, the
additional done is refuse
thA hS/CS
le highest interest
interest certainly never more than once rially higher interest rate and, by nicipalities for example, is so low to pump addition; means that the
itila naii by municipalities in every six months. Nothing is more all means, secure the best possible that it is ridiculous. In many in- System, which
hv
miinirSlitioq in
rates paid
over
22 years) is nothing1 more demoralizing to the market for a
lefal advi99
ting up the issue properly in set~ stances Tt "runs only 10%3>\20% only monies available to borrowof the estimated true.
Such an ers are those provided by sayers.
than a shortage of savings as reumcipality s bonds than to have
absurdly low assessment costs a The Fed's action gradually is related to the demands of borrowb?n
Selling Bonds
lsfsu,e] smiounced
lot of money when it is converted
lieving upward pressures on the
ers
in
the
capital markets.
In
portions on the first one
of +ha
Not only must the issue be well jn^0 ^be form df a financial state- price front and will, in the long
still
remain
*>**,'■
other words
it ic not
shnrtnee
5LilJ
renjcou
un
the
dealers
- — —— —imo me lorm 01 a imanciai siaieof siinnlv hut
of
do
shelves. We well remember before and conservatively planned, it ment- issued for^the purpose of run, save you many millions of
mend
the net result hfhJ% He
Washington Suburban Sanitary must be expertly presented to the seuing bonds at the lowest pos- dollars in the cost of the capital
fieienev
District, Md., started selling its is- Pllbl]c in the form of a properly sible interest rate.
One of the improvements in your community.
y
.
sues once a year that at one time worded notice of sale with accom- most critical indices in judging a
It is important that Treasurers
Local officials can do little to
we
held unsoid portions of four panying
explanatory
financial municipal credit is the ratio of net have a clear understanding of
alter the inexorable
supply and different issues. Naturally, if we data. It is not necessary for you bonded debt to assessed value, what is happening in our capital
demand
factors
of the economy,
haven't sold all of the first issue, to employ any bond house as lis- You may have only a 3% debt 011 markets today. They can do much
iriey can do much to improve the we must bid lower for the
second, cai agent or financial advisor to the basis of the true value of your to lessen the inflationary prescredit rating of their localities and
still lower for the third, and, by secure this result. Our State Com- taxable property but if you assess sures by advising the taxpayers
this
can
result 111 a
savings of the time we
get to the fourth, we mission on Local Debt, of which at only 10% of'actual value, then of; their locality to defer all but
thousands of dollars over the life
wish we had never heard of6the the state Auditor J. Gordon Ben- the
ratio
becomes
not
3% ' but the most urgent capital spending
ot tne Dond issue,
ihis brings us
place> Fortunately for that" Dis- nett, is secretary, does an excel- 30%],
an
astronomical
figure. Programs.
Responsible officials
;
°iUr S?yeC\ «ma]1CM trict» careful planning in recent lent .1°b entirely without cost, statements to the effect that the also can do much to enlighten the
ing Municipal and County Bonds.
years
has resulted in almost a You, of course, pay the fee of the assessed valuation represents only taxpayers as to the workings of
uouptiess
many
are
questioning scarcity value for the name.
approving bond counsel as well as 10% Gr 20%—sometimes 25% or the money market and the meantho

current

-

•>

an

eveess

.

_

•

Sr intArLCarn^°w

ni

theh

aJ

as the

hp'
ue.

nop maV
case may

I

n

Sound Administration

First, remember the lowest interest

rates are secured by those
municipalities whose linaneial affairs have been soundly and well
administered throughout the years,

Another good example is that tha expense of advertising the 30%—of the real value are help- ing of today's high interest rates,
of the City of Richmond. Follow-' notice of sale which should ap- fuI> but many astute and hard«llmmarv
ing advjce which our firm gave Pear in the Daily Bond Buyer, headed institutional buyers simply
Summay
them several years ago, Richmond
published m New York. N. Y., shake their heads and say, "That
In summary, First, see that you
riow sells its bonds only once a and recognized as the "bible" of estimating business is all right so operate the affairs of your own
year
(the third Wednesday in the municipal bond industry. Such but the only thing I go by is the localities that you offer to the 111December) and, as a result, its notice should appear two or three legally assessed valuation"*
vest or the soundest possible secubonds almost always sell a little weeks ahead of your sale.
Therefore, without commenting rity for his money,
higher than they would otherwise.
Be prepared for numerous let- in any way on the Catterall recSecond, lose no opportunity to
If
any
investor objects
to
the ters
and
telephone
calls
from ommendation
relating
to
the tell everyone the good news about

progressive

price, the bond dealer simply says,
"Yes, these Richmond's may be a
little
high
but
remember
you

planning and well-spaced borrow-

won't get another chance at them

bond dealers around the country
requesting two or more copies of
the notice of sale and additional
financial information. These

until next year."

should

to

those

ing.

bave

who

balanced

operated with

budgets,

Slipshod methods, poor plan-

fn, e^trayagance exact a
fearful toll in the form of

high

rates.

Planning

bond

issues

means

capital planning, and every locality should have a capital budget,

| e question residential
of well-balanced Under ideal circumstances,
and

.

industrial
ana

growth

resources

city

9)9y

in

but
the

stantly locus

citizens
diversified
♦An

county

be someone else

sponsibility

01

your

address

you

can

attention
on

and

the

s

or

recon-

of the

necessity

balanced

eco-

by Mr. Craigie before the

Local

Government
Official's
Conference,
University of Virginia, Aug. 27, 1957.




20%

or

should

up

to

be

furnished

by

return

Local Debt is handling

your

sale,

send such inquiries to it.

by the Local Debt Commission
the bids

income.

This

from

current

requires

a
lot of
part of the admin-

are

as

received under ideal

Usually, at the beginning, it requires higher tax rates,

conditions at a central point.
By all means, issues should be
sold by sealed bidding at public
sale. Nothing arouses the indig-

Over

nation of bond dealers

courage on the

istration.

a

period of years it results

ratio of assessment, I should unhesitatingly say — prepare for a

Bond dealers like issues handled shock—80%.

25% of the capital budget

more

than

your

I must point out that low valua-

mail. If the State Commission on I were asked to suggest a proper

be

financed

credit.
.Third, be prepared to supply
lions
for
the
more-or-less ex- accurate and up-to-date financial
pressed purpose of soaking the information
cheerfully and
utilities can be self-defeating'. If promptly.
1

assessment of utilities in Virginia,

This

gives

Fourth, come to the market

only once a year, if possible.
Fifth, sell your bonds at public

enough sale under sealed bids, taking full
advantage of the services offered
by our State Commission on Local

cushion to allow for normal variations
in
"inflated"
values
and

Debt.
Sixth, establish realistic ratios
Money Market
0f assessed
valuation to true
Finally, let's' take a look at this values.
thing we call the money market.
Seyenth, promote thrift in your

errors

in assessment.

municipality play favor- New issues of municipal bonds in municipality
does drive home to the citizens ites, divulging information to one the year
1957
probably
will without the

in matefially lower tax rates. It having
that

if

they

want

a

new

court-

a

dealer and not to another, reject-

amount

to

about

$7,100,000,000.

structure.

both

(within

and

local governmental

Volume

186

Number 5670

.

.

The Commercial and Financial Chronicle

.

7

(1007)
/.

Steel

The,

Production

Electric Output

From

'

State of Trade

Washington

Food

and

Price

Auto

Industry

Investment Corp.

Trade

The

Ahead

Commodity Price Index

Business Failures

of

The Chase Bank,
foreign financing
subsidiary of the Chase Manhat¬

of the News

Production

Index

name

wholly-owned

tan Bank, has been

By CARLISLE BARGERON

changed to the
Chase

One
Total
result

industrial

of

production

suffered

contraction

some

as

.

a

the

trend

in

steel

production

has

already

begun

and

■»'

/■,!,

industry.

V

v

■

will

velt

•

-

-

producers reported a
last week, and orders

in

output
production

•

exceeded

that

of

year-to-year

climbed

15%.

down

were

last

5%.

'

of

our

^

■

v,,'

,

tillers
s o

a

In

u

e.

volume

initial

of

claims

went

down

to .4,200

to

make the

had

in

;

The total for the like week of 1956 was 188,800. Insured
*: employment went down
by 32,300 to a total of 1,160,400
,

week

Aug. 17, the agency further reported.

/

resulted
V

V

in-

considerable

a'

trend

further

this

month.

in

It

early in December.

steel

will

Much

has

reach

of

the

a

peak

and

late

it

But

wide

variation

to

Bom

will

expand
in .November or

,

going directly
been large.

in

1959

and

indications stem

strong

so

much

as

has

programs

an

from

auto

strike

excessive

resistance

in

1958.

In

demands by
to

pacts

both

the

steel

that

will

For

the

President,

Reuther

work-week

and

good

increase

that

he

will

will

trade

get

no

dollars

32-hour

for

production workers and
The

national

movement

in

the

to that in the coal

outstanding

skilled-labor,

a

for

the

moderate

refinements in fringes.
metalworking weekly also reported

Despite the trend, it noted, it is still
being that David McDonald must first
the logical choice as steel's
will not take the
job.
as

from

It

areas.

years

away, the reasons

strengthen

his

position

bargainer, since John M. Stephens,
•

t-

,

.

,

half

consumer

price index

rose

0.5%

in

49=100) according to the Bureau

July to 120.8

(1947-

of Labor Statistics of the United
Stated Department of Labor. This will result in
automatic wage
boosts for about 1,300,000
factory worfcers. A slight rise in food
prices offset declines in other
groups.
The

factory

buying

power

workers'

was
fractionally reduced as the slight rise
living offset gains in average spendable earnings.
Incoming orders for machine tools totaled $55,800,000 in

the cost of

up

30%

next

July

of

in

over

few

1956.

June,

months.

The

as buyers anticipated price increases in the
However, the level was below the $61.9 of

value

of




orders

tor

the

first

seven

Continued

months

page

28

bill

Treasury
to make

would

loans

is

1

activities, the Chase International
Investment

"

has

College

to

common

to

other

you

Corporation

will

not

engage in the business of distrib-

uting securities to the public.*

G.

Fitzgerald Elected
Harris, Uphant Partner

pay.

sense,

apply not only to

but

Clifford

Govern-

.

,

E.

Fitzgerald,
Ft

•

T-r

-

i

associo

n

the

with Harris, Uphani & Co.,

Administration,

120 Broadway, New York City, 28

Housing

Disaster Loans
Business

and

such

under

under

as

Small

Ad-

Home

•

years as order clerk and head
floor clerk, has been elected gen®ral fl°or ParM:r °* ^a^riSo+
ham on the New York Stock

HHFA

both

Farmers

.

can

jmagine

how

Exchange,

"reac-

according to

an

an-

tioaary» this is. Particularly when nouncement by George U. Harris,
J

the

?unat°u'S bik als° Pravides senior partner of the firm.
* 2±!*&L!ZS5SJ£i
Mr. Fitzgerald joined Harris,
to
administrative

loans

cover

expen?es_. His biU didn>t get any_
where in the session just closed.

Upham & Co., as an order clerk,

But it is still pending.'

when

*

on

Oct. 29, 1929

(Black Tuesday

trading volume of

60,410,-

d

dignation over quicker tax writeto

private

electric

He is a member of the Senior
Order Clerk Division of the New

power

York Stock

companies

Exchange.

CANADIAN

INVESTMENTS

the

jm

commercial
services."

is

like

basis

We offer

to

United States investors

complete facilities for the pur¬
chase of Jiigh grade Canadian in¬
vestments.

also

manifest

Our facilities include:

A Research

that

Department with
up-to-date information on
major Canadian companies.

it

the business-

which

on

it

Insofar

orig¬

was

A

loans by
the Treasury are concerned, REA
has never cost the
taxpayers a
rcent.
been

The

loans

repaid.

But

subsidize

ers

;

up.

of

have
now

at

or

Private wire service
offices

across

from 1952

on

down.

of the

we

the

go

to

countryside"
change and, as

farther along, the tillers of

soil

for

whom

the

program

originally set up, will become
proportionately less in the bene¬
ficiaries of the system.
be

just

for

the

McLeod,Young,Weir
B

&

as a

good

example of the
whole paying taxes

of

a

Investment Dealers Since 1921
50 KING STREET WEST, TORONTO, CANADA
Montreal
Vancouver

Quebec

favored

few,

Ottawa

Winnipeg

London

Hamilton

Calgary

Kitchener

Sherbrooke

Windsor

Edmonton

New York

So it will

another

Company
LIMITED

nation's

continue

invited.

are

In fiscal

later, in fiscal 1957,
they totaled $300,461,514. The end
is not yet.
The "changing char¬
will

our

Inquiries from investors

$165,758,731.

years

acter

to

Canada.

grown

the demands of the "chang¬
ing character of the nation's coun¬
tryside," is shown in the amount
of
loans
granted from year to

Five

by

An

has

with

year

deal in securities

mail.

the

thereabouts.

Correspondence Depart¬

ment to

invariably
the taxpay¬

loan

every

1%%

as

example of how REA

taxpayers
on

and

was

July,

jjis

the

seems

non-farm
and mis¬

from

has moved far from

a

strong

he
;*

revenue

service

farm

1952 the loans totaled

The

.

"'diberal/"

About half of their

rate
a

This

original intent, that of making
electricity available to the rural

for

industry to two-man bargaining, similar
industry.

■

So the REA has gone far from

some

steel

which

its

32-hour

increase

that

meantime,- Senator CapeIndiana has courageously
pr0posed that no loans made by
the Treasury to any governmental
agency bear less interest than that

good bit of their rural

a

cellaneous

UAW

work-week, but

*

wage

that

denies

The REA service territories

inally set

industry, "The Iron Age" forecasts

in-

t ments

ves

of

remaining
residences,

higher

industry specifically, "The Iron Age" predicts

Walter

i

continual

comes

the contract.

auto

the

traits.

in

each year in

i-u

in

Ci-aft

rather than

jn the

offs

losing

are

having to raise prices every year.
A wage
package not quite up to the one gained last year, but with
enough
cents per hour and fringe benefits to boost
prices again in 1959
and

to

H.

to

hart of

money

rate of

the other
pay
around

on

•

*an

areas.

belated attempt
by USW President, David McDonald to tighten
up control of the- union.
A 05-35 chance that there will be a
steel strike in 1959 and a much
tighter management front because

weariness

and. he

trying to cut them down.

building homes. Industry is
locating in suburban and rural

against

force

national
Robert

that Benson is

case

and

not

a

of

its

the

at

changing character of the
countryside is having a
effect
on
the
territory
and electric service requirements
!of
many
REA
borrowers. City
people are moving to the country

strike

cases,

unions

prices.
the

in

ac¬

the

to

field of inter¬

marked

and stretch¬
other materials. ' The amount of

indirctly into- defense

or

management

For

'

the

cor¬

poration's

nation's

"The

strike

.

gets

having

of

one

the

fine

con¬

tivities

now

sai(h

special analysis of organized laboiy its goals and
prob¬
Iron Age" reported strong possibilities of a steel

a

is

phrcy,

Widespread pessimism because of defense cutbacks

In

It

that

trying

de¬

a

to

the REA, it is not
^ seems a little hypocritical 000 shares lowered the Dow-Jones
only the tillers of the soil who are though for the
"liberals" who industrial average 30.57 points)
being
subsidized.
Secretary
of want the present interest rates to and was named head floor clerk of
Agriculture Benson
in a recent
prevail to be professing high in- the firm in 1945.

firms, it noted, have worked off substantial inventories,
they will be active in the sheet and strip market for more
steel than they took a
year ago at the start of new model runs.

lems,

doubt.

businesses

The- Treasury

expansion

and

steel

loans

REA

"The

outs will not hit steel

cision

try- commercial banking, in accordance
ing .to get control of REA loans with the choice provided under rewith a view to cutting down on
vised Federal Reserve regulations
them. The fact is that Benson is
applicable to Edge Act Corporaunquestionably in control of these tions. In its international financing

ministration..

be

the Treasury

Furthermore,

.

Auto

..

^to

come

subsidized

3%y°V,

new

comparable footing.
.

slightest

remains

fact

the

hand,

activity is now building up.
operating rates among companies is now
By October, most firms will be 011 a

in

contract.

the

the^^countiTl

.

'.Based on market conditions observed
by "The Iron Age" in
the past few
days, the national metalworking weekly added that
the predicted improvement in steel

beginning

not

has

REA

.

.

not have undertaken.
-

strength comes from new
orders for automotive steel, but there:;<has-been
expansion in
volume of orders from miscellaneous
sources, it reported.

The

is

largest

started

become.

are

That the RKA has brought elec- jneht lending agencies
trieity to millions of farm homes
Home

2%
upward

Mr.

accomplished a job that the
private companies obviously could

,

in steel is underway,

-But

"liberals"

action

reflects

Benson

Administration,

>

there

rise.* in

"The Iron Age," national
metalworking weekly, stated On Wednesday of this week.

inter-

It

"

The looked-for after Labor
Day upturn

The

So

Credit

raTmers

unemployment claims fell 11% during" the week
ended Aug. 17,,they exceeded those of a
year ago by about 5%,
again reflecting fewer seasonal plant shutdowns.. Claims fell
most
noticeably in New York, Connecticut and Illinois. The
newspaper strike in Boston
claims in Massachusetts.

reports

the

promptly -denounced
of the Commission's
politically sacrosanct

has the REA
/

that

boosted.

be

phase

report.

un-

Although

...

rate

•

its

of

one

est

during the

ended

Hoover

recommended

tliis

i

.

.

in

borrow-

that .-the

seems

Eisenhower

the

construction, textile,,, clothing and food processing indus-.
tries,! the .bureau noted.
•.>
v
;

,

It

REA

on

had

185,700, the agency stated. Some 30 states reported declines.
The drop,.was, attributed to the
seasonal expansion of employment.

This

trying to make

Secretary

subsidiary,

announced.

Humphrey and his

cam¬

Commission

total

a

Farm

fellow

ings.

.

the

in Applications for loans of
$500,000. or more.

n

h ab 1

the interest rate

-.

been

against

n-

a

o uc

Carlisle Bargeron
to
repeatedly
deny charges
that they had sought to increase

during the week ended Aug. 24, according to the BureauV
of Employment
Security.
/■'V:
The

have

case

the

publicans

1957

President of

atten¬

issuing an order that the di¬
rector of REA, within the Depart¬
ment of
Agriculture, consult with

paign the Re¬

,

to

come

it

dential

,

has

an

the last Presi-

,

poration, Rob¬
ert
H.
Craft,

but

for

of

i h

matter

Through out

11%

reports on the employment situation for the nation
as
a
whole show that the number of
newly laid-off workers
seeking unemployment insurance dropped to the lowest point

of

freer spaces,

well.

as

In¬

vestment Cor¬

moving

are

s

i
t

Latest

*

towards the

industries

erals"

'

in

who

oli tics

p

orders

new

out

dwellers

Inter¬

national

favored few individuals

a

interesting way. Sena¬
tor Humphrey and his fellow "lib¬

people,

the

Paperboard

7% ?'and
:' "V

by

year

*

decline

-city

The

designed

; rural

,

Lumber

not only

tion in

bring better
living to our

'u

!
The production of petroleum fell to the lowest
level so far
this year and was 5% less than a
year ago.
Despite a moderate
decline in imports, crude oil stocks
reached the highest level on
record. SBituminous coal production for the
year to
date was
slightly below the comparable 1956 level.
-.
r

'

dream

a

to

•/'.

v

the

Delano Roose¬

automo¬

tive

of

great enterprise, born of
by Franklin

show further expansion during September. It is further
reported
that a good portion of the nfew orders has come from
the

*

darlings

■

-

ear

forward

-

the

"liberals" is the Rural Electrifica¬
tion Administration.
There is a

long Labor Day week-end. In the automotive in¬
output declined 4.7% due to the holiday, and model
changeovers.
Reports from the steel industry assert that the

dustry

of

^

Now Chase Infernal'!

Carloadings
Retail

f

GOVERNMENT,
AND

MUNICIPAL

CORPORATION

SECURITIES

Tt

Financial Chronicle

The Commercial and

.

Thursday, September 5, 1957

..

(1008)

8

persuaded
that
the
downward
shift in legal reserves will not be

Corporation—Data—Oppenheimer, Vanden
Broadway, New York 5, N. Y.
Calumet & Hecla—Memorandum—Hill, Darlington & Co., 40
Wall Street, New York 5, N. Y.
Employers Group Associates—Analysis—Blair & Co., Incox-porated, 20 Broad Street, New York 5, N. Y.
Fire Association of Philadelphia—Report—Thomson & McKinnon, 11 Wall Street, New York 5, N. Y.
Frito Company — Analysis — Dittmar & Company, Inc., 201
North St. Max-y's Street, San Antonio 6, Texas.
General Motors Corp.—Data—Bache & Co., 36 Wall Street,
New York 5, N. Y.
Also available are data on Western
Natural Gas, National Distillers & Chemical, and a leaflet on

C.

I.

Financial

T.

Broeck & Co., 120

Dealer-Broker Investment
Recommendations & Literature
that the firms mentioned

it it understood
to

will he pleased

following literature:

eend interested parties the

period in which
Con¬
servative legislators may accept
the reasoning of the ABA Com¬

inflationary in

mission that the. Federal Rcsei've

I.

ward

/

5

Motors, Ford ana

discussion of Stocks for Income with
Defensive Strength—Harris, Upham & Co., 120 Broadway,
New York 5, N. Y.
Also available are analyses of Chicago
Pneumatic Tool Co., Toll-Tiv, a study of inflation hedges,
and the current issue of "Pocket Guide" discussing 20 better

Market Review—'With a

acting stocks which are

candidates for splits or large

to

Atherton

stock

period

&

Stocks—Comparison of 12 largest Philadel¬
& Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
Politico-Economic Crossroads & The Bond Market—Analysis—
E. M. Saunders Limited, Victory Building, Toronto 1, Ont.,
Canada.

(Special to The Financial Chbcnicle)

S. Colburn is now
&

Miss Colburn was

Norman

BRIDGEPORT. Conn.—Leonard

Another Look at Bank Reserves
<w

Outlook—Booklet—G.

H.

Walker

Co., 1

&

commercial^buildconstruction—Stran-Steel Corporation, Detroit 29, Mich.

ucts for

use

in institutional, industrial and

World Bank Loans for Japanese Industries—Analysis—in cur¬
rent
issue
of
"Nomura's
Investors
Beacon" — Nomura
Securities Co., Ltd., 61 Broadway,
in the same issue are analyses of

Business

.

*-

•

•

deposit

reserves

this

an

is

Lee Co. Branch

inflationary step and insists
since

New York 6, N. Y.

•

this

the
Eco¬
nomic Policy Commission of the
year

American Bankers Association re¬

leased

one

of the most

mmi

Co.

—

Memorandum

1950's.

—

Herzfeld

&

Memorandum

—

Co.,

207

a

and

East

Michigan Avenue, Milwaukee 2, Wis.

Formed in New York City

substantially lower

reserves,

namely, 10% of demand deposits
and 2% of time deposits; to au¬
thorize

the

Federal

Reserve

to

the demand deposit percent¬
as low as 8% and as high as

vary
age

12%

of demand

deposits; and to
permit member banks to count
vault cash as part of legal re¬

the

proposals make sense
correcting historical
anachronisms
in
the
present
terms

of

frac¬

as

David H. McKinley

"re¬

the

Commission
recommende d

change
Federal Reserve Act.
overdue

long

a

The

Commission

in

proposes,

the

short, to change present laws to
permit the 6,500 member banks to
*Fi-om

the

a

Sixth

Fii-st, legislators will have to'
de-emphasize the liquidity aspects
of reserves; and to accept reserves
mainly as an important ci'edit
control

talk by Professor McKinley at
Annual Pennsylvania Bankers

Bucknell Uni¬
Aug. 19, 1957.

and

of

ment

in

banks.

not

a

fund

depositors

Even in our

for

pay¬

of insolvent
greatest bank

crisis in 1933, we didn't permit re¬
serves
to be withdrawn, so why

have

Orradio Industries

,

Lewisburg,

Pa.,

8c

with

Co., Inc.

has

offices at 141

Broadway, New York City, to en¬
gage

in

a

are

cers

securities business. Offi¬
John J. Laver, President

and Treasurer;

Helen Laver, Sec¬

retary. Mr. Laver was formerly
with Edward A. Purcell & Co.(

a

"fire

engine which

can't

Thompson & Sloan Formed
HOLLYWOOD,
& Sloan,

son

Calif.—Thomp¬

Inc. is engaging

7805

Boulevard.

Sunset

in

a

offices at

securities business from

Officers

Stanley B. Buhai, President;

are

Arnold Spatt,
Leo

Vice-President, and
Secretary-

Bromberg.

E.

Treasurer.

TRADING MARKETS

FLORIDA

SECURITIES

Second, the

Congress

must be

BanJi\ Insurance Companies*
Industrials

.

\1;

J

American Marietta

"

'V-

■i

versity,

Laver

J.

formed

be taken out of the firehouse"?

Association Summer School,

:

John

been

serves.

in

serves,"

Air Products

hold

'd All of the

hold

Cross Company

John J. Laver Co.

purpose..

plan, but proponents of the plan
tion
of
de¬
should recognize the road-blocks
posits
which which stand in the way befoi'e
American
Congress will be persuaded to
banks
must
adopt the ABA plan.

Wall

Currently Active—

not used for their

comprehen¬
sive
analysis
of

Milwaukee

opened a branch office at 620
Pligh Street under the direction
of William R. Oberlander.

should be

reserves

are

extremely

Street, New York 5, N. Y.
—

the

In

scholarly

Stern, 30

O.—Analytical brochure—Glore, Forgan & Co., 40
Co.

Asso¬
in

ciation

Broad Street, New York 4, N. Y.

Oil

the

by

U. S. Steel Corp.

Can

re-

ports issued

Also

the Japanese market and

Ludlum—Analysis—Dean Witter & Co., 14 Wall
Street, New York 5, N. Y. Also available is a memorandum

American

important

economic

*

•

they

assigned liquidity
Earlier

POTTSTOWN, Pa. —Lee Co. has

approves

confined to credit control

Allegheny

t,

with Norman F.

Dacey & Associates, 114 State St.

\.f

ABA proposal to fix demand
at 10% and time deposits at 2%. Denies

professor

:

Foreign Trade.<

.<

..-v.-

•.

•

.

Pennsylvania State University, University Park

Wall

Conditions—Summary—SecurityFirst National Bank of Los Angeles, Research Department
Box 2097, Terminal Annex, Los Angeles 54, Calif.
Stran-Steel Products—Catalog on all light-weight steel prod¬

Burmah

.

By DAVID II. McKINLEY*

Southern California Business

&

'

•

,

S. Murzin is now

Associate Dean, College of Business Administration

in September "Monthly
Investment Letter"—Hayden, Stone & Co., 25 Broad Street,
New York 4, N. Y. Also in the same issue is a brief analysis
of Bell & Ilowell, and an analysis of the current market.

B.

Dacey Adds

(Special to The Financial Ceronici.e)

Street, New York 5, N. Y.
Municipals — Discussion

on

California Street.
previously with

519

Talbot,

Calif.—Hazel

with Hannaford

York & Co.

of Firestone Tire & Rubber Co.

Short-Term

ing

greater political

the Federal Reserve.

,

Securities

\

over

SAN FRANCISCO,

Milwaukee 2, Wis.; Also in the same issue is an
analysis of Maryland Shipbuilding & Drydock Co.
Also
available is an analysis of American Hospital Supply Corp.
Skelly Oil Company —. Analysis — Sutim Bros. & Co., 120
Broadway, New Yoi-k 5, N. Y. Also available is an analysis

—

Banks—Stroud

and

With Hannaford Talbot

4. N. Y.

phia

desirable

of

sorts

toward

move

control

New York

Philadelphia Bank

the

"hitch-hikers," espe¬
cially from legislators who fret
about tight money and would like

analysis of Virginian Railway.
Safway Steel Products, Inc. — Analysis in current issue of
"Business & Financial Digest"—Loewi & Co., 225 East Mason

showing an up-to-date com¬

and market performance over a 13-year
Quotation Bureau, Inc., 46 Front Street,

of

plan is likely to in¬

undesirable

Sti^eet,

National

all

volve

Co., 50 Congress Street, Boston 9, Mass.
Oil—Analysis—du Pont, Homsey & Company, 31
Milk Sti-eet, Boston 9, Mass. Also in the same circular is an

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield

ABA reserve

Richfield

dividends.

Over-the-Counter Index—Folder

consideration

Any

job.

York, 6, N. Y.

Big Piney Oil & Gas.
Republic Steel Corp.—Memorandum—Schirmer,

Current information — Yamaichi Securities
Inc., Ill Broadway, New York 7,

—

-

Reserve.

fully at its central bank every 10
years,
we
in the United States
have
repeatedly postponed
the

Corp.—Memorandum—Richard
Bruce & Co., 25 Broad Street, New York 4, N. Y.
Northwest Production—Report—Western Securities Corp.,
1
Exchange Place, Jersey City 2, N. J. Also available are re¬
ports on Three States Natural Gas, Delhi Taylor Oil, and

Company of New York,

Federal

the

Unlike Canada which looks care¬

New Cornelia Extension Copper

6, N. Y.

•

Third, the plan may get lost in
jumble of other proposals to

a

modernize

Co.—Memorandum—Green, Ellis & Anderson,

61 Broadway, New

stocks with high yields and some growth
potentiality—Joseph Faroll & Co., 29 Broadway, New York

New York.

Cleveland 14, Ohio.
Dairy Products—Analysis in current issue of "Glean¬

National Supply

High Yields—List of

Japanese- Stocks

the ABA.

Russell & Co., Inc., Union

Bonds.

Letter.

of

period would be less arduous to

ings"—Francis I. du Pont & Co., 1 Wall Street, New York
5, N. Y. Also in the same issue is a discussion of Convertible

investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

dollars

-of

Co.—Analysis—H. Hentz & Co., 72 Wall

Commerce Building,
National

billions

of

present reserve funds. Introduc¬
tion of the plan in a deflationary

Mohawk Rubber Co.—Bulletin—J. N.

View —Monthly

able is current Foreign

Washington

M. Kidder &

Street, New York 5, N. Y.

—
Study, with a discussion of General
Chrysler—McDonnell & Co., 120 Broadway,

a
CongreSmajority will support the

sional
release

'
-1 .
•
Utilities Corp.—Memorandum—A.

Herrington

considerable

expect to do
"educating". before

Auchincloss,

—

a

prima facie like, pouring kerosene
on a fire.
Bankers and economists

Co., 1 Wall Street, New York 5, N. Y.
Marmon

N. Y.

New York 5,

Burnham

Memorandum

Redpath, 729 Fifteenth Street, N. W.,

Parker &

5, D. C,
International

Review

Automotive

—

down¬
over

five-year period; yet instinctively
vote against legislation that looks

may

Circuit Breaker Co.

E.

T.

safely neutralize the
shift as it occurs

can

the Copper Market.

3fl)—Features the Nuclear Navy; an artist's
conception showing all 21 of the atomic vessels now in
operation, under construction or planned; a table showing
the principle contractors for the ships and reactor components; also mentions the large Swiss and Dutch holdings
of the Fund's shares. Comments on High Voltage Engineering
Company and Foote Mi*eral Company—Atomic Development Mutual Fund, Inc., Dept. C, 1033—30th Street, N. W.,
Washington 7, D. C.
J

Atomic Letter (No.

a

is creeping inflation.

there

DEPENDABLE MARKETS

Transcontinental Gas Pipe

*

Northwest Production

'Florida's

Incest in

Three States Natural Gas

Golden

Delhi-Taylor Oil

TRADING DEPARTMENT

Big Piney Oil & Gas

TELETYPE MAA51

Trading Markets

—

&

Special Reports

TROSTER, SINGER & CO.
Members:

74

New

York

Request

I ALFRED D. LAURENCE |
&

Security Dealers Association

Western Securities Corp.
One Exchange Place, Jersey

Trinity Place, New York 6, N. Y.




on

DEMPSEY-TEGELER & CO.

City, N.J.

Telephone HEnderson 2-1000
Open-end

phone to N. Y.C. HA

2-0185

COMPANY

INVESTMENT SECU1ITIES

I

%

wwmmmm&mwzmMmMwmmmM
201 S.E. 1st Ave. Miami, Fla.
Phone: Miami,

FRanklin 3-7716

Volume

188

Number 5670

.

.

.

The Commercial and Financial Chronicle

9

(1009)

Securities Salesman's Corner

Your Car in

Thousand

a

Garages

By Dr. IRA U. COBLEIGII

the past three years at the rate of
around

A consideration of the unusual business
conducted

^ A Suggestion for Direct Mail Using Tax Free Bonds

Corporation, its quite remarkable growth
ment attraction of its

advertising is that

should

you

use

"timing."
Your product
"right" for the times.
Today, the income return on tax
proper

should

be

in

bonds

free

above

that

instances

many

paid

astute
are

in

individual

amounts

to

suit

We

is

sincerely

latest
bonds

and

community
of

are

dollars

which

people
in
every
holding millions

in

penalities

savings

reserve

subject

are

to heavy tax
interest they

the

on

creasing

will

we

send

list

of

folder

a

this

plain

returned

the

outer

still

upon

you

attractive

in¬

loan

yours,

is

$10,000,

you

only

keep

the

taxable
income
bracket,
your
net
return
per
thousand invested at 3%% taxable
is

$16,000

thousand of
savings. Until recently there has
not been anything that the con¬
scientious saver who was seeking
liquidity and top-flight security
only

$17.50

per

bonds

you

mailing pieces are
available from leading municipal
bond underwriters.

the

list

up every inquiry.
This is
opportunity for you to show
the man with savings of
$5,000
to

$25,000 and upward that he

at

last

as

high

content.

invested

that

quite
Don't

not?

who

m

your

-to

'community
know

more

type of investment?

20%

to

and

50%

Central Republic Co.
Dean Witter &
the

New

York

Co., members of
Stock

the merger

announce

and

ness

Exchange,
of

Company

with

Dean

A

Direct Mail Letter

want

a

to

basic

Increase Your Income

NEWARK, N. J. — Hemphill,
Noyes & Co., members of the New

...

Cut Your Tax Bill!

Do

Hemphill, Noyes Co.
Opens Newark Office

you

available

have surplus savings
today?
Are you pay¬

income tax on the interest
receive?
Then you should
investigate TAX FREE BONDS.
Today you can invest in the
sound obligations of the growing
cities and towns in (name your
ing

you

York

the

Stock

Exchange,

opening

Broad

of

Street

ment of

announce

office

an

under

the

at

744

manage¬

Roland H. Hill, Jr. Also
new office are

associated with the
Sherman

Kane,

W.

Halsted

Tal't

and

Ralph W. Voorhess, registered
representatives.

and

with,

which
an

will

income

3% to 4Vi%,
TAX
come

FREE

these

of

revenues

nities

commu¬

provide

return

of

all

Federal

In¬

Tax.

These bonds
soundest

considered the

are

investments.
They are owned by banks, insur¬
ance
companies and by many
type

(Special to The Financial Chronicle)

of

DETROIT, Mich.

Cary,

Robert

J.

—

Charles B.

Dougherty

and

Buhl

Building,

Detroit

Stock

members

of

the

Pocono Hotels Units
Buck Hill Falls Co.

Guarantee Bank & Trust Co.

Reading Co. 3Vss, 1995

Exchange.

Armstrong, Jones

Members

Phila.-Balt.

Stock Exchange

Pennsylvania BIdg., Philadelphia
Teletype
PH

375

N. Y. Phone
COrtlandt 7-6814




be

arranged

week

a

the

was

a

or

same

of

rental

car

licensing,

there's

revenue

which

and

of

45c

used

split

in

Corporation

cars

last

General

Motors

is

tented

only

all
mileage
specified
mini¬

the

well

duced

in

by

up

con¬

And

assured.

important im¬

an

service

Hertz.

your

extra

in

car

can

now

city and

one

return

a

of

big

and

since

truck

rental, Hertz
knowledged pioneer

is

the

and

does

not

of

poses

contribute

ac¬

leader.

the

major
producers.

are

Further,
known
senger

to
car

of

portant.
55%
of
Hertz

biggest

Hertz

passenger
car
Rentals for business pur¬

revenue

rental

the

passenger

while Hertz is best
the public for its pas¬
lease service, actually
is

trucks

Truck

far

im¬

more

leasing
income

total

produced
for

1956.

13,000 trucks,
most of which (over 90%) are out
on
long-term
lease
contracts.
owns

Hertz does

over

everything but furnish

the driver. It maintains and

ices

not

into

common

at

38%

the

on

Hertz

the

gent,
made

of

the

cash

operating
for

revenues

grown

with

and

acquisitions

In

and

and
merged into Hertz
Corporation. Overseas, the com¬
in 1957 bought a controlling

serv¬

at Honolulu

the

where

sense

the

practical.

is
much
economic
good
in truck
rental, rather than

ownership,

for

medium sized

and

may

stock at

small

many

business
530

over

of

block

before

he

be

a

investment

be rented

can

equipment

as

thus

and

have stopped

HARTFORD, Conn.

—

9 million trucks

at

of

in

members of the

Eddy

&

Exchange.

Co., 31 Lewis Street,
New York

He

was

on

with R. C. Buell & Co.

starts

With Coburn Middlebrook

the

Active

Trading Markets

i

r

■

Maintained in all

PHILADELPHIA

the

the road,

Richard W.

portunity
growth in

BANK STOCKS

only
about
2%
are
presently
rented; which suggests a fine op¬

filiated

MacKay are now af¬
Armstrong, Jones,

with

Lawson

&

Building.

White,
All

were

Penobscot

previously

with Carr & Company.

B.
are

&

ANGELES, Cal.—Williard

Weaver and

R.

Wigely

with Evans MacCormack

now

Co.,

Robert

453

members

South

of

the

Stock Exchange.

future
business
division of

truck

Send for comparison

of 12 largest Philadelphia Banks

activities.

addition to direct ownership
operation of trucks and cars
for rental, the Hertz Corporation
has greatly extended its coverage
by an extensive system of agency
licensing. Through any of its com¬
In

and

Evans MacCormack Adds
LOS

Hertz

for
this

Spring
Pacific

Street,
Coast

bined

United

outlets

States

in

750

and

cities

in

22

in

STROUD & COMPANY
INCORPORATED

the

foreign

PHILADELPHIA 9

countries,
Hertz
of

you
can
arrange
a
rental. The high standard

service

Hertz

name

associated
is

with

maintained

the

by

Stock

previously

trucks

Of

Willis C.

Warner has been added to the staff

own,

or

needed, with idle
reduced
to
a

supervisory personnel.

over

growing.

Hertz
shareholder,
(Special to The Financial Chronicle)
potential, operating re¬
sults over the past three years
STAMFORD, Conn. — Charles
make interesting if not exciting Nemarow is with Coburn & Mid¬
reading. Total operating revenues dlebrook, Incorporated, 30 Park
were $21.7 million in 1954; $41.2
Row.

present

Further, there is no
requirement to maintain a service
and repair facility, or mechanical
or

growth

time when many others,

With Eddy & Co.

origi¬

its

to

prove

a

companies truck rental

well since all costs
immediately deductible and
bookkeeping is greatly simplified.
There is no need to tie up capital

and

companies; and the

(Special to The Financial Chronicle)

It

driving, nor do a lot of extensive
baggage shifting or toting.
For

interesting looking future.

difficulties of parking and
garag¬
ing in the big cities are suggesting
to
many
individuals
the
con¬

rental offices,

hotels. The customer doesn't have
a

in

car

or
licensed, agency locations,
airports, railway terminals or

walk

an

Airport and Waikiki so-called,

extremely

nates, with

to

1957,

extra

venience
and
economy
of
car
rental rental.
Assuming the persistence
and only of this trend and swing toward
acquisition
of rentals, TfHertz is on the
right track

French

In location of its

goes

modest

a

There

Beach (world renowned for swim¬
ming, swinging and swaying).

is

a

Europcar-s;

week

Hertz

share

per

predictable for

perhaps

soddenness, Hertz appears to be
sprightly performer, buoyed up
by a sparkling trend in earnings,

but
have

quired

a

seem

company
total cash

a

or

Drive-A-Car, Metropolitan Dis¬
tributors, Robinson Auto Rental
and Carey Drive-Ur-Self were ac¬

in

with

a

aggressively and successfully
arranged. For example, since 1953

interest

consonant

stock market characterized
in many areas
by descent, dullness

been

pany

the

stock.

were

apace,

is

would

and

higher than for 1954. Not
have company
operations

themselves

is

con¬

will

on which basis
distribution of $1.50

results.

1956

you

within

policy,

fields, has turned in

dynamic

to

note, have
past
four
years. A payout of 50% of net in

intelli¬

automotive

as

doubled

management
with broad ex¬

men

in

up

vehicle rental
some

dends,

progressive

perience

inducement

truck, attends to repairs
provides insurance coverage.

truck

New

there

dividends, 50c a share
paid in 1954, 78c in 1955 and
$1.00
in
1956,
plus
the
stock
extras aforementioned. Cash divi¬

from

smart,

a

Exchange,

About

years

severed

was

General Motors,

three

Stock

works out very

in

at

common

the

For many

sell

was

Rental
Car
Co.
of
and 'Honolulu
with 75 cars and offices

car

And actually the pleasure of vaca¬
tion rental by day, week or month

part

In

growing /Hawaiian

passenger

has

the entire property was sold
Omnibus Corp., which, a year
later, changed its name to Hertz

ithis

this

buisine^s

now

share, and the

a

sells

considerable

1953

enterprise,

charge.

in

Now

intro¬

was

You

return it in another with
or

late

a

maintained,

year

provement

is

car

is

driving

this

pick

for

Since

2-for-l stock

a

Presumably
the
common
(3,000,000

convertible

$26.48
now

to

mergers

and

was

$1,000' bond

long
1953, it was
subsidiary
of
Corporation. In

wholly-owned

cents

a

amount

5% stock divi¬

authorized) will be (or has
been) increased by conversion of

existed. From 1926 to
a

only

mile

a

the 4% debentures. These
at 145 and, since each

The

170%

over

This

1955.
of

shares

plus revenues from parking
lots, service stations and parts.

Gross

a

in

1,811,169 shares of

dend in 1956, and
amount

year;

to their holiday
haven, and
renting a shiny new car at
from $6.50 to $11 a day
depending
on
make and model (plus a few

driven

and

stock.

arrived at after

source

share

a

1970

common

agency

another

sale

—

netted

Corporation.

Mich. — Bruce H.
Boyson, Russell E. DeKarsky and

DETROIT,

(Special to The Financial Chronicle)

Samuel K. Phillips & Co.

due

year

Finally, in addition to the three
corporate
divisions
swiftly de¬
lineated .above,
namely,
truck
rental,

year-

$4,826;046
$29,011,976

minimum.

(Special to The Financial Chronicle)

John B. Stetson Pfd.

a

of

equipment
debt,
in
notes, $3,698,500 in 4% debentures

provided

.

Richard A. Lewis have joined the
staff of Baker,
Simonds & Co.,

With

Standard Pressed Steel Com.

million

advertising
by Hertz Corporation.

consisted

are

from

And it is all yours,
of

Three With Baker Simonds

you

$2%

over

national

then

and

state), that are secured by taxes

in

train

rentals.

might use this material as
suggestion for your copy.

ice, and

end

vert.

very

advantages of car renting
certainly catching on. Instead
of
a
long tense motor trip of
many
hundred miles, thousands
of drivers are now
leaving their
own
cars
at
home, comfortably
zooming by plane or streamline

card

ad you

And

services
as
underwriters,
brokers, dealers and distributors.

ment

bit and make a double
out of it, or if you
try it in a newspaper

change it,
return

a

firms, with offices in 42
cities, will offer complete invest¬

merged

Possibly the following will give
you some ideas of your own. You
can
use
this copy
in a letter,

inspection
of
agency
operation.
The
agency
in turn
benefits from the Hertz
name, in¬
tercity advance reservation serv¬

a

from

$2.63 in 1956; and
above $3.20 a share

Capitalization at the 1956

frequent

on

to

1957.

Hertz

the

The

Central

Witter & Co. effective Sept. 3. The

run

for

York

are

of the busi¬

personnel

Republic

stock.

opportunity for the general
public to become shareholders in

in advance. It

mum).

Bean Witter Absorbs

investments.

Jike

to

Uncle

ex¬

in Daytona last winter.

model

Tax

story in itself, is it
think there are

a

along

3V2%

without

about?

the in¬

you

would

about this

on

least

at

42/2%

as

can

taking away
(and more) of
it.
Isn't this something that you
should
enjoy telling the world

from

yours.

Income

these

people

many

all

have to pay

from

That's

is

Federal

no

you

come

it

and

is

There

obtain

coming

However, today if you invest in
sound tax free municipal bonds,
or
some
of the
good authority
or expressway and turnpike obli¬
gations, you can obtain from $35
per thousand to $45 per thousand

more

an

agency

must

way

Follow

For

thriving business that rental of

very

description,
ma¬
turities, rating if any, and the ap¬
proximate
yield
to
maturity.

He had to take it and

be

and

tip of Cape
Cod,
there's
doing such a

Cooieigh

Hertz

a

Give

issue, a
available

short

could do about these meager after
tax returns.

the

U.

ira

car

should be brief.
of

name

should

rate and the invest¬

common

1954

at

are

good

Your

71c in

Provincetown,

recommending,
and a brochure describing the ad¬
vantages of "Tax Free" bonds.

$21 per thousand, and if you are
in

a

ample, at the
airport in

promptly. Enclose a short
covering letter along with a lisi

Several

have paid Federal In¬
Taxes.
If your taxable in¬

basis.

made

after

come

on

international

of

you

by

Corpo¬

ration

Replies to this letter should be

account, you can keep
only $28 (of the $35 interest you
receive on each surplus $1,000)
come

cars

supplied

national

For example—if you are in the
lowest income tax bracket of 20%,

and

af-

by

rental

receive.

and have $1,000 more than you
normally keep in a 3^% savings

to

travelers

Hertz

Respectfully

con-

forded

ex¬

of

way

to

the

on

venience

income.

your

a

of

pause

great

Fret

will

I

reflect

oui

Tax

that

from

reaches

And

me.

the enclosed card to¬

us

and

just
on

Cape Cod, the holiday viewpoint

to fill in

urge you

offering

Thousands

day,

Having
vacation
is

and send

of

require¬

your

ments.

low yielding
savings accounts which are sub¬
ject
to
Federal
Income
Tax.
on

They
convenient
to

88%. Net earnings
share basis have risen

per

by Hertz

investors.

remarkable,
and they can be purchased

own,

gross

above $70 million.
Operating
have been running for

run

expenses

Enterprise Economist
By JOHN BUTTON

One of the rules for productive

million 1955; $55.8 million in 1956^
For this year, estimates of

NEW YORK

•

PITTSBURGH
SCRANTON

•

•

ALLENTOWN

ATLANTIC CITY

•

LANCASTER

The Commercial and Financial

Chronicle

Thursday, September 5, 1957

...

.

(1010)

10

im-

atoms in major quantities, there

portant
combination — chemical
manufacturing and atomic power,

being about 150 different fission
products of various characteristics. Therefore, irom the atomic
ashes of power and production
reactors, - we can obtain isotopes
by chemical or physcial separation. There is a need to emphasize this fact -clearly, because a
common
misconception of the
value of these materials exists,
'tke task of dealing with their

what

Savins oi Isotopes

Uses and

And Our Atomic future
By DR.

of

savings from peaceful uses

member foresees

C.

E.

A.

Commission

States Atomic Energy

the cost of the nation's atom program
within three to five years and probably sometime in 1960.
Dr. Libby touches on the unseen opportunities of the many
unborn uses of the atom which are chemical in nature and
await the important combination of chemical and atomic power.
Describes the industrial, agricultural, medical and other revolu¬
tionary

of
the

beryllium
for

necessary

the atomic

development is
pleasing .to

energy

Atomic

the

we

solicited proposals

Dr.

Wizard F. Libby

had

bidder

successful

de¬

also

veloped a shortcut process.
brought to bear on the program,,
We are continuing to
explore
the price will
decrease thereby
benefiting atomic power and ev¬ the feasibility of extending to in¬
dustry an invitation for proposals
eryone in the country.
1
for
processing of fuel elements
It is always true that difficult
from
non-government
reactors.
tasks
are
best done by people
Such
processing
constitutes an
accustomed to solving hard prob¬
integral part of the fuel cycle of
lems, and the difficulties of or¬
nuclear reactors. It is hoped that
dinary
industrial
competition, these chemical facilities will be
especially in the chemical and
ready shortly before the time in¬
metallurgical business, are such

thjg survivors are necessarily
to solve hard problems.
We

able

urgently need the skills that in¬
dustries
of
your
type possess.
Everywhere

in

look

we

the

there are
problems which only the chemi¬
cal
and metallurgical
industries
atomic energy business,

dustry's

Reactors are in operation.

order

In

during
the

provide

,to

period

the

Commission

a

of

will

transition,
furnish

to

industry spent fuel elements from

reactors.

government-owned

solve.

have announced

during the

two years several programs
under -which private industry can

past

participate further in the atomic
energy program. On Aug. 25, 1905,
the
Commission
solicited
pro¬
posals to supply zirconium metal
and all of the by-product hafnium
over

a

five-year period. You will

cussing

is

pact

to

will

is

Commission

Contracts.with private industry

shall

the

valuable

the

removal

their

after

which

constituents

remain in the spent fuel

elements

from

the

re¬

actor.
We

also hope that

the chemical
industry will pursue the possibili¬
ties of using atomic radiation for
the

promotion

tions.

We

of

desire

chemical
to

reac¬

coal

energy

make

to

used

235

-

of the

fraction

in

turn

and

cost

the

is

uranium-235

We

know

ways

if

i

much
by¬

a

Thus

we

see

an

example of

was

-

addition

In

value ol!

other fission

electric

.could

transported

be

not

far
has

little

been

'tion of the use of atomic reactors
for the

production of heat.

I sup-

the dominant factor is that
to use heat from a reactor, one
must be close enough so that the
heat
can
be
transported.
The
pose

reactor hazards 'are

problems

of

such

this

that

moderately

is

however, can be transported
easily than heat, so most of

atomic

the

make

rather than heat.

atom

the

will

1895

to

1939—inclusive

to

1928—inclusive

these

with,

that

to

1956—inclusive

to

1952—inclusive

very




the fuel elements and
By using this crude

degassing.
^miiln

.

J

-

u'hat I shall call "Rock-Bottom"'
prices of isotopes,

per

milligram of neutrons of which $4 is production
is for chemical separation of the isotopes >

of material

$3

Half-life

Present

Selling Price
(Dollars >

(per Curie)

produced isotopes:

per

Curie)

6<f'

5.3 years

Co60

$

9

Chemically transmuted
neutron produced isotopes:
H 3

or

T

Fission

Cs137

2,000

«

products:
days

0.01':

33 years

30c

8

J131

knows,

da>s

2

22.000

0.5t*

years

87

S35

to be¬

25r.

$110

12.26 years

5,600

C14

power

it

and

550*
10

may

do

to keep up

with the mar-

ket.

want

talk

to

about

isotopes

so

Isotope

Park Place

N. Y.

solving

Non-transmuted neutron

two

Write: Edwin L. Beck

New York

something like strontium-90,
which involves chemical reagents;
the krypton-85, being a noble gas^
will be removed -simply by dis-

assumptions described. The Commission operates on the basis of
over-all recovery of costs in the
and their tremendously beneficial
isotopes program which allows the
applications.
First, however, let large-volume isotopes to carry the
us
consider their production.
cost for the low-volume isotopes,

can

I

REctor 2-9570

krypton-85, for example, should
be much cheaner to sennratp than

It is clear from the tab'e that the volume of reactor production
the present selling prices xar ex- on which I have based the $7 per
well be that both of us, the ceed in nearly every case, except milligram
of neutrons figure,
producer and the atomic en- tritium, the "rock-bottom' price. Thus, the cost of isotopes at presproducer, will have all he which we have calculated on the ent will naturally be very much
electric

0i'gy

1926

One

that

Cost

to the con¬

comes

one

business.

coal

1914

$7

Isotope

serious

offer

We

'

o w e v e r,

Bottom

will probably
atomic power
There is a pos¬

not

h

realize,

Rock-

competition to the coal business
supply of heat. Therefore,
think

on

and

it looks as though

present time,

and

Rock Bottom-Prices of Isotopes

,

(Based

sibility, of course, that this pre¬
diction may be wrong but, at the

1908

c/o Chronicle. 25

must

energy

to

used

JL

ofWu-

dif-

Electric en-

ficult and expensive.

primary

WOrds

over-all chem-

sort of

a

the

milligram

ner

ab-

neutrons

otbL

In

separation cost figure
aunlv it to fission nroducts

produced, $k) by.neutron capture
which produces an element different from the target and thus allows the isotope to be separated
and concentrated chemically, and
making possible the use of a much
Tower neutron flux. An important
/example is radioactive carbon, the
product of neutron irradiation of
ordinary nitrogenous materials. It

heat
and
con^idera-

producing

used
there

as

of

fissioning

icai

change in chemistry of the isotope

and

Phone:

prod-

well; namely, that most coal is

as

in

atoms

trong

In addition to the fission

point

I believe there is a second

j

tenlial value as radiation sources.

the
of
course that there is a continuing
rise in the demand for both heat

Subject to prior sale.

milligram

gorbed
f

nomically, the atom broadens the ucts, there are two other sources
market for the use of ccal and. .;0f. isotopes (a) neutron capture by
benefits the coal business
a target
element not involving a

coal

.

^ the gene a^.cal separ^

products are quite

wiU take $3

lieve that the atom will help

Available for immediate sale in New York City

only cost,is tne separation cost,
Jhf is very difficult to estimate
thatThe^eneral chemical Separa-

several

solutions are of considerable PO-

eco-

clusion that here is reason

Beautifully Bound Sets of

these,

to

which goes into its separa- likclv to prov e useful. Also, the
tion.
Therefore,, insofar as en- mixed fission products even in the
•ncued -reaci-ors are used to pro-, unsenarated fuel elements or fuel
power

thoughts,

"FOR SALE"

'
fusion
products
the*
J.or nie n.sion products, tne

jhc--pot transmit the hard yttrium-90
mdiation, as-.desired. This is an
' the separated excellent material for luminescent
A
considerable paint, for example.
,
generating

in

which

electricitv

I

„

The Atomic Energy Commission
^ had a great deal of experience

uranium-235,

in the

...

duced by the atomic pile, in other
words, we v*ll not discuss oxygen
and nitrogen isotopes at this time,

contained in coal,
in the sub-

energy

The

ergy,

Beryllium

"CHRONICLES"

conditions. In order to do this, I
consider only the three
classes of isotopes that are pro-'

form a consequence constitutes a mini- haps $4 is the cogt o2 a minjgram
mum external radiation hazard as of neutrons absorbed and that
as it is safely encapsulated a5out
per milligram are spent
marine, Nautilus, is, in a sense, Capsulation,can be accomplished for the chemical separation of the
the result of the expenditure of 111 containers which will or win
produ(d
the

of

this

further

potentially
acquired
as
product of atomic power.
many

cheaper

Corporation, Hazleton, Pa.

These

cations of isotopes which might
be really too expensive under any

the coal busi-

duce
atomic power in faraway
negotiated individually to
establish
firm
charges
for
the -places of the. world .to which coal

in
by Dr. Libby at the Dedi¬
for the opening of the

Ceremonies

me

of

today try to esti-

235, there is a concentrated

be

of

cost

points

several

us

j

the

cause of the energetic radiation milligram, and that from this $7
of its short-lived yttnum daughter per milligram price an'item of
plants for the separation of urani- constitutes an excellent beta ray about 50% is reserved for chemiurn isotopes.
In a sense, you may source, cheap and long-lived. It cal separation costs for products
say
that in separated uranium- emits no gamma radiation and as produced Thus we see that permainly

ed, and hope to be able to supply
this need, although I do want to
emphasize that such radiation is

Plant

from

view, but let

Question

consider

to
operate
our
plants,
the
gaseous
diffusion

power

procurment program when I tell
you
that
private industry had
been supplying to the AEC only

Division

of

one

question

Cost

to

such as radioactive signal lamps
anc^ flashlights. (2) Iodine-131,
the extremely important eight
f"ay isotope oi iodine used widely
*n thyroid diagnosis and therapy,
(3) Cesium-137, the 27 year halflife isotope which has great po-

for

better

be

have

mate the minimum or rock-botlorn, costs one could expect under
the very largest volume uses in
order to eliminate quickly appli-

atomic energy development

ergy

Analyzes

We

technological importance wh en
are fission
products arc: (1)
Krypton-85, an isotope of 9.4 year
half-life. It is a noble gas and
emits a 0.72 mev beta ray and is
potentially very useful in a considerable number of application*

beneficial and will conbe so, and that the coal

business

that radio¬
active cobalt will likely be need¬

fMuclear

our

like to say that

program.

address

the coal business. In disatomic future I would
I believe the im-

ergy on

gain some idea of the magnitude
of industry effort required in this

*An

coal is produced,

people must have wondered
the impact of atomic en-

many

more

cation

Valley

Lehigh

the

much

so

They should
This is a

isotopes of

important

Four

Future

will be

the

We

in

Here

where

waste.

called

be

misnomer.

II

Atomic

Our

base load -uranium

For example, tnere are
questions connected with the .service, subject to escalation on
the basis of an appropriate price
re-cycling ~of ~ plutonium— how
will we burn the plutonium which index. The purpose of the new
announced this, past
is certain to accumulate as the policv,. as
presently, planned atomic power February, is to give further en¬
reactors operate?
We must solve couragement to the development
of a private atomic energy indus¬
the
metallurgical and chemical
problems incident to this impor¬ try by giving reactor operators
an
assured means for recovering
tant task.
can

not

tentiality as a cheap gai"ma ray with atomic piles and we know
form
of
uranium
hexaflouride.
Seven firms responded with
in¬ ness has. We buy enormous quan- source. (4) .Strontium-90, the 23 from this experience that we can
dividual and joint proposals. The tities for production of electric > ear
] ~ * e isotope \vhich be- produce neutrons at about $7 per

are

that

even

best csutomers that

is
and

sk i 11 s

the
rather
than worse. It certainly is true at
the moment, for the Atomic En-

private industry for the pro¬
duction of feed materials in the

as

gathered

tinue

from

antici¬

pate
that
experience

about

Similarly

Energy Com¬
mission. We

fully

vaguely describe.

not

of zirconium metal per
for five years, at an average
cost of $14 million per year.

producing

determine their costs if manufacturcd in very large volume? We
know that in nearly all cases the
quantities now sold are small

,

pounds

try has taken
the
challenge

How much should these isotopes
cost? what are the factors which

disposal in the sea and even m compared to the potential vol-interplanetary space is frequently umeS) and that this is particularly
as a major one for the atomic s0
the cases of those isotopes
tention,
consideration
and ap- development. I believe this is un- whose uses are relatively undeproach. It will pay you and like
to
™!e Situation and yelopcd such as radioactive carthe
other opportunities
I have, that the value of the fission pro-- bon, and that therefore their costs
mentioned will undoubtedly bring uc'ts as isotopes will be such that, probably should eventually prove
you closer to unseen opportunities
except for the most dilute and in- {0 be mUch lower.
.
which we in our ignorance can- transient solutions, valuable use
will be made of them.

year

the alacrity with

and

indus¬

sentially the separation costs,

are

proposals. The final award was
split among three firms which are
establishing new
facilities from
which they will supply the gov¬
ernment
a
total
of
2,000,000

vately owned plant for the largescale
manufacture
of
metallic

NH,NO;. which has been irradiatecl by low flux neutrons and
thus potentially produced for es-

of the

200,000 pounds per year.
The
original solicitation was for pro¬
posals
to
supply
two
million
pounds. However, when the time
to negotiate contracts arrived, the
AEC requirements had increased
five-fold.
Ten
firms
submitted

of the first pri¬

The dedication

which

.

can be separated and concentrated
from target material such as

chemical in nature and
await the industry's interest, at-

atom

indicates extent the atom

beryllium

.■ ■■;.

Many of the unborn uses

of and savings brought about by isotopes, and
would help the coal industry.

uses

they have

tion.

radioisotopes offsetting

not

may

be really economic? I
a considerable
way to go now but it might pay
for
chemical companies to get
into fuel reprocessing if only to
make use of the by-product radiato

prove
realize

WILLARD F. LIBBY*

Commissioner, United

reactions

tion-induced

an

that these radia-

knows but

Who

into

develop

may

Isotopes
several
sion

can

ways.

itself

Production

be produced in
The action of fis-

produces

that the

not

reflect

case.

individual isotope does
the true cost in each

larger than in the volume re-

quired to reduce the prices to the
rock-bottom figures in this table,
In other words, the cost of producing radio-isotopes is something
like an inverse function of the

volume of sales and will drop
very steeply as the result of an

Another factor is, of course, expanded radioisotope program,
isotopes sales In many instances the potential
compared to uses of isotopes are so large that

that the volume of
radioactive is extremely small

Volume

186

Number

5670

.

.

.

The Commercial and Financial Chronicle

(1011)

r

it

makes

some

to

sense

consider,

the prices listed above

as possibly
practical and realistic and useful

to

rule

the

out

costs

potential

will

where

uses

always

be

pro¬

hibitive.

which
Now

be
a

the

let

time

consider

us

and

At

uses.

the

the

appli¬

present

the

country
is benefiting
enormously
from
the
uses
of
isotopes. We estimate that our
present savings approximate half
billion dollars per year in indus-.

a

try

and

agriculture

alone—neg¬

lecting

medical and research
benefits—and all this is at a cost

of

crude

tenfold

higher

tolerable

prices

in

price

this

to

ously,

if

have

such

been

rupture
and
in

at

not

bond
distillations

as

are

savings

An
tial

in

isotopes

is

in

the

well

as

already

that

by

1960

annual cost

ment not in
our

applications. As
have

barnful

national

a

of

result,

a

treasure

radioactive

plants

different types, all stored
ready for the chemical ex¬

produce

drugs

and

organic

as

It

the

desired

chemicals.
has

been

.

well

to

medicinals
•

.

doctors may come to

radioactive-pills in
cal

practice

It would

poses.

that

for

the

normal

not

seem

feeding of

active

pur¬

unlikely

metabolism

and

easy

way

metabolism.

wouid

to

the

benefit

There

of

content of the blood

sugar

and

furnish

much

other

more

ways

present

more

reliable,
desirable

reason

per
and

a

will

year

billion

a

continue

prognosticated
in

the

next

to

Research
on

in¬

Overcrowding is jeopardizing U.S. public school standards.

is

years

solidly realistic.

C

■,

■

■

■

■

.

The

known

radioisotope

applications

techniques

strain

grow

tenfold

three

But

of

have

■

'

■

\

lightweight, low-cost steel offers

by

:

*

■

'

1

■

•

-

solution...

a

no

means saturated the market. It
is estimated, for example, that the
market for radioisotope thickness

gauges is less than 20%

installations

on

the

have

been

to

pay

initial

found

investment

in

Liverpool, N.Y.
—People by the

saturated.

Such

average

off

millions

the

than

less

cerned

what

and

is

ally

The measuring, recording,
controlling of the thickness

year.

are con¬

today by

a

described

as

as

of

gener¬

''the

plastic,
rubber,
aluminum .and
cigarettes have returned to Amer¬

our

of

various

ican

materials

manufacturers

such

they now
savings approximating

$120

! And, unfor¬
tunately^ statis¬

Dr. Franli Mosher

mil¬

tics

lion per year which probably will
rise to $1 billion per year in.two
three

or

new

for

comparatively
radioisotopes is to

of

use

.bear them out. Such

A

years.

plight
public

schools."

real

savings
report annual cost

and

a

seem-to

statistic

as
this,
instance, from the National Educa¬

tion

Association

years

in

News:

"For

;

three

the Office of Education

a row,

facilitate oil well stimulation, but
this
newly born use for radio¬

has asked the state school

active

report

tracers

already, as indi¬
by the reported savings of

cated

$180
a

million

per

the

o^

that

this

industry

will

in

profit

terms

to

come

of

amount

than

$1 billion annual
ings shortly.
Let

us

consider

now

to

sav¬

where

we

going to get the main part of
the additional $4.5 billion annual
savings from
isotopes.
We
are
going to get it by greatly expand¬
ing the uses as we
have
just
but

mainly

tremendous possible
tions.

The

dustries,
ness,

organic

do

not

the

the

at

important

radioactive

from

carbon

oil

in¬

busi¬

time

present

of either

use

radioactive

or

has^been about the

capacity."
Dr. Frank Mosher,

: The results, as
superintendent of schools in Liverpool1
(a suburb of Syracuse) points out, are

all too familiar. Two

ments and

even

homes pressed into

service for needed classroom
space.
A Nationwide Crisis

A

crisis?

Yes. Its causes? Says Dr.
Mosher: "School construction fell be¬
hind during the depression. It

prac¬

organic
exists

chemical

in

the

to

every

industry
that
of controlling

way

production operations by judicious
labeling of the material being
processed

at

example,

suppose

label

a

safe

certain

low

levels.

wished

we

constituent

of

For

to

the

crude
oil

oil, say octane, going to an
refinery. Then at the rock-

bottom
oil

prices

used

raised

in

to

activity

the

whole

U.

in

S.

level

normally

radiocarbon

produced

the

the

of

coyld
of

matter

by the cosmic

be

radio¬

present

living

the

rays

as
as

for

something like $130,000 per year.
this level, plant control could
be
accomplished because the

At

natural

radiocarbon

content

is

very nearly zero due to the great
age of petroleum—the cosmic
ray
radiocarbon
having

long
since
decayed out
of the organic matter



prompt and dependable;

And now, as

that often hold up construction.
From foundation to
framing to ex¬
terior facing Liverpool's two newest

a

result of the

lation is

importance

was

there

normal

extreme

delivery

tically ceased during World War II.
postwar birth rate,

of

"shifts"

day—each student pos¬
sibly losing an hour or more of teach¬
ing instruction each day. And ancient
structures, empty stores, church base¬

elements with which they work in

manufacturing op¬
erations, and it is completely ob¬
vious that there are applications

or more

a

hydrogen, the two most important
their

same—

million children above

the

applica¬

new

chemical

including

make any

use.

figure

of students

are

described,

agencies to
the number of pupils in
capacity of the schools
For three years in a
row, the

on

of normal

'

of

source

getting more oil out of the same
piece of
ground
and
doing
it
more cheaply and
it seems likely
more

in

represents

year,

large potential

to

excess

Also,
facilities
as

school popu¬

multiplying phenomenally."
adds the educator, school
are

often

used

after

hours

community centers for civic

recreational affairs.

classes, too,
a

our

enormous

are

further strain

and

Adult education

multiplying, imposing
on
already inadequate

school facilities.

Faced with the suburban
problem
of low tax revenue,
Liverpool school
officials decided on the use of a com¬

paratively new school building mate¬
rial—Stran-Steel framing, a National
Steel
new

product—in the erection
schools

totaling

44

of two

classrooms

plus other facilities. And right from
the start the payoff was one of
omy—more,

much

econ¬

for

more,

tax¬

payers' dollars—plus speed and effi¬
ciency of construction.
Matching strength and durability
with

any

type of steel,. lightweight

Stran-Steel joists and other

components
handle

and

proved
assemble.

far

framing

easier

to

Furthermore,

were none

schools

of those

erected

costly delays

in record

time.
Handsome and spacious, they can now
was an almost intolerable
were

to

help

serve

America better. The prod¬

ucts reflect National Steel's

unchang¬
ing policy of producing ever" better
and

better

steel, for ever more
of the quality and in the
quantity wanted, at the lowest possi¬
purposes

...

ble cost to

our

customers.

relieve what

☆

strain of
And

overcrowding.
they cost far less, too, than

schools of comparable size built of ma¬
terials other than Stran-Steel struc¬
tural

products. Example: Chestnut
Elementary (50,028 sq. ft.) cost
$686,384—a saving of $177,599 over
Hill

the

N.Y.

state

median.

cost,

($964,154) for the

same

size school.

National's Role

Stran-Steel framing and other archi¬
tectural products are
typical of the
products developed by National Steel

NATIONAL STEEL
GRANT

BUILDING

☆

☆

☆

cataloggiving information on all
Stran-Steel products—for use in insti¬
tutional, industrial and commercial
building construction—write to StranSteel Corporation, Detroit 29,
Michigan.
new

of

$863,983. And the Chestnut Hill Jr.
High (55,835 sq. ft.) cost $855,392—
$108,762 less than the state median
cost

For

SEVEN GREAT DIVISIONS
WELDED INTO

ONE

ST E E L-M A KIN G

COMPLETE

STRUCTUR E

Great Lakes Steel Corporation
Steel

Company

•

•

Weirton

Stran-Steel Corporation

•

llanna Iron Ore Company • National Steel
Products

Company

Corporation

•

in

than

Continued

schools stand ?

can our

dollars

or

techniques.

attain

we

is ample

half

more

a

in

after

the
sugar
metabolic mechanism
which would be far more sensitive

particularly illumi¬
of .testing
that
Perhaps
a
patient

to promote this

purpose

goal.

How much

govern¬

of $20 million.

excess

up

dioxide
times

one

for

pill to a patient suspected of
having
an
abnormality
in
his
sugar

blow

various

might develop a method
testing for abnormalities in

way

sugar

an

at

and urine at various times. In this

radioactive

a

breath

to

carbon

dioxide, and it might also be il¬
luminating to examine the radio¬

use

medi¬

diagnostic

asked

the

so

11

the taking of the pill could be
sampled
for radioactive
carbon

mention;
namely, that they may have great
value in
ordinary medical prac¬

nating

demonstrated

his

There is another
possibility, how¬
ever,
that I wish
to

tice and

be

balloon

sav¬

per year

to believe that this present rate of

crease

Na¬

would

with

these

and to make certain that

this

was

already
that
the
isotope farm
are
of great
value
in
biochemical and medical research.
products

isotopes that

ings will attain $5 billion

It is

at

traction and separation needed

of

use

radioactive

and nrndicm/ds

now
a

and

extiemely important poten¬
in

Isotope Farm
the Argonne

an

of many

Prospect

development

grown

synthesized
in
the
Some
six
or
seven

is

estimate

an

we

costs.
Medical

be

used, the potentiality lor
very much greater,
l

now

savings

at

for these

—

considerable

some

must

tional Laboratory of the AEC near
Chicago with the purpose of sup¬
plying the raw materials needed

involving

such

—

ago

established

instances

many

savings

enormous

effected

the small amounts of

years

labeling of
coming crude might be useful for
operations

than

laboratory.

ap¬

expect
the in¬

we can

tritium

In

substances

rather

still

important

million per
government.
Obvi¬

the

chemicals.
these

even

is

something like $3

year

oil.
may

optimistic, but

plication. Similarly

Savings, Applications, and Uses
cations

the

rock-bottom

somewhat

that

Now

constitutes

•

The llanna Furnace

National Mines Corporation

CORPORATION
PITTSBURGH, PA.

page

22

The Commercial and Financial Chronicle

12

.

.

Thursday, September 5, 1957

.

(1012)

Discussing long-term trends in
housing market. Alfred
P.
Johnson, author of the article,

Special Pullman cars will leave Chicago on Saturday morn¬

of

Security

National

the

Association,

Traders

states:

Inc.

leaving Chicago will be joined at Cincinnati by
those coming from the South and Southwest.
Saturday evening
the Cincinnati Stock and Bond Club will be Hosts at Cocktails
The

Notes

NSTA

for

evening

Saturday

phia

Convention

the

Cincinnati, New York and Philadel¬
those enroute to the 24th Annual

ing, November 2nd and from

"Prices

group

(in current dollars) of
existing homes have in¬
creased markedly since the early
postwar period. Only one-fourth
(those who) purchased homes in
1947-49
paid
$10,000 or more,
compared with about three-fifths

Club. Dinner will also be served
Club for these enroute to the Convention.
The Special Pullmans from both East and West will arrive at
Beverly

the

at

Hills

Country

at Beverly Hills Country

(Homestead Hotel) early Sunday Morning.

Hot Springs, Virginia,

TRADERS ASSOCIATION

NATIONAL SECURITY

and

new

.

Returning

.

that purchased houses during

.

1954-56.

We

of Sin¬

that Herbert Singer

& Mackie, Inc.,

Bean

ger,

York

New

The

train
half page

advertisement on
back

outside

the

Round

includes

in

which

specified, transfer of baggage between
Rooms on the American Plan
(two in
as

Hotel

construction

totaled

between

and

1956,

tle

From

NATIONAL SECURITY TRADERS

Cincinnati

-Duplex

the
the

FROM

*

138.30

190.99

rangements

189.44

186.86

191.86

192.91

195.60

181.85

182.90

185.59

proportion of all non-farm spend¬
ing units owning homes increased

will

New

9:37 P.M. Leave

Dinner
10:20 P.M.

Penna.

on

R.R.

Penna.

*

Philadelphia 30th St.
Baltimore

8:05 P.M. Leave

-

»

York

$314.80
424.89

$324.81
441.61

$326.90
444.75

339.70

342.12

*

354.22

in 1956 dollars. In

345.10

347.52

357.53

359.62

of

329.48

331.90

341.91

344.00

with

will

available from

be

not

ROUND

RAILROAD

TRIP

C. & O. R.R.

Baltimore

TAXES

Chicago

A.M.

J* \;f

5:10

Luficheon
'

■

P.M.

...

81.84

yNew Orleans

—

r*

-

Train

' i

A

.

..

■

.

!

Arrive Hot

New

RETURNING

Thursday, November 7 th
8:15 P.M.

Leave Hot

Springs,

of

value, in contrast with less

54.62

than four in

4:05

A.M.

_

77.17
i

»

INFORMATION

R.R.

Penna. R.R.

7:25 A.M. Arrive

the

Penna. R.R.
C. & O. R.R.

STAJB

35

Geo. Eusiis & Co.

Penna. RR.
Penna. R.R.

increased

,0:30 A.M. Leave
2:10 P.M. Arrive

Cincinnati
Chicago

of

the

NO END IN SIGHT—

now

;

age

An eleven billion dollar

.'A'"
Opportunities for investors?

■

,

'

V
.

•

.

.

V

Here;

j

.*

1

j

of the stocks

find markets for^—
'

*

,!'

industry

decade.

A

'

-

•

.

1

•

!

•

'

increased

ers

early

.>,

(2)

;

*-

number

In
of

Associates,

1

Inc.

(G. M.) & Co., Inc.

For current quotes,

the same period, the
mortgaged owner-oc-

cupied

Topp Industries, Inc.

simply

Yarian Associates

Hon-

from

Marketing Department

and

&

Beane

NEW YORK 5, N. Y.

Offices in 112 Cities

"
i

of

debt
aeui

homes

in
in

owneru\

increased

has

$3,700 to $6,100.
„

m1

Merrill Lynch, Pierce, Femer

fr o m
16 mil-

i-

mortgage
mwigdfee

The

70 PINE STREET

increased

houses

(3) Reflecting higher Prices and
more liberal purchase terms,
averase
udfet

contact-

1957;

early

to

about 9 million to almost

occupied




two-fifths

about

1949

Sprague Electric Co.

xi

Giannini

One-third

bought

all

survey

,

other

house

,

rm

found about 5 /o
spending units

non-farm

all

those

the

time

of

Consumers
in

who

in 1956 sold

at

this

fashion

an-

their

who
bought

higher priced homes than other
purchasers.

The

houses

swapped

proportion

who

increased

with

How much

did

1956

home buy-

pay? How many went in
debt? And how far did they go?

«s

According to the survey, which
a
scientifically selected

covers

One

to

of the

one-sixth

years of
had mortgage debt, and most

or

had

or more

debt-value ratios

less."

of

1

Johnson serves in the

*

consumer

Research

and

Board's Division

Statistics,. v:

Irving Meredilli With
Hufchins & Parkinson
(Special to The Financial Chronicle*

BOSTON, Mass.—Irving Meredith has become associated with
Hutchins & Parkinson, 27 State

Street, members of the New York
and Boston Stock Exchanges.

Meredith

Mr.

formerly President

was

~

nr..i

*

^

Two With A. C.

a

h

Ailyn

(Special to The Financial Chronicle)

CHICAGO,
Beach
FT

and

111.

Kelley

—

e iey.

Kelley

R
Beach
V%
-i. 'a

R.

Jr"

li'
s? p
ol.-d»000 iaimnes, pur- have become associated with A. C.
chasers paid a median
(middle- Allvn and Comoanv Incornoratpd
mnc.n
'ipp nf «Monnn far thair fo?o
i
ir T v 4, J.'
cnmnlp

nf

q nnn

faminM

nnr

T

fn

1956

un

$2 000 from

the

homes in i9ob, up $2,uuu liom the

•

P

i

It Street. Both

were previously with Bacne & Co.

preceding year,

out of five home buyers
homes for their own jn 1955 incurred mortgage debt,
during 1956.
Two- Tim median income of all home
thirds
of these purchases were purchasers was $5,469, while the
existing homes.
median mortgage debt of those
Four

purchased

occupancy

.

(A spending unit, as defined by

65

debt

age

the age and income of the head of Scribner & Meredith, Inc.
oi liie spending unit.

homes

.

of

home

a

"traded"

Packard-Bell Co.

Collins Radio Co.

Trading-Up

purchase.

from

or

'
'

increased.

mortgage

of

the

as

Federal Reserve

living together who pool
their incomes.)
.

analysis of survey
data reported in the current Fed(1) The number of home own-

ti'X;

of

ratio

finances and credit section of the

Re-

special

a

ratios

persons

by The Uni-

(FRB)

*■:

-

t

Electronic

year

,

•

.

a

make markets in,

we

Ampex Corp.
'

a

ff

•

are .some

the ' Federal

of those with

the survey, consists of all related

eral Reserve Bulletin also shows:

that could double in volume within
.

finances

consumer

versity of Michigan's Survey Research Center (SRC).

Limited by man's imagination alone—that's the future
for electronics.

for

Board

serve

.

of

survey

conducted

the

owners

these

50%
.

under

mortgage,

a

debt-value

declined

of the

owners

frequency

and

value

of

$3,700 to $6,100 with mortgage increasing
more rapidly in size than house values.

homes, according to

had

than four-

more

haft

of age

50%.

over

debt

from

own

(home) valuefis

seven-tenths

"The

of

ilies

to

early 1957

mortgage

H. WELCH

More than half America's fam-

of

The

years

and

homes.

^

absence

or

owner.

"In

Study shows more than half of U. S. families own their own
Average mortgage debt since 1947 is found to have

9:20 A.M. Arrive New York

or

in early 1949.

fifths of the home

More Than Half U. S.families Now Own Hemes

.,7:20. AM. Arrive Cincinnati

50%

estimates of

period <jf own¬
length of ownership
turn is related to the age of

in

Chicago, 111.

Penna. R.R.

Philadelphia, 30th St.

debt

of

owner

cf&O.

10

presence

ership.

R.

equaled

owners'

mortgage debt is related to period
of ownership. If there is debt, the

Sincere and Company

5:40 A.M. Arrive Baltimore

the

also related to the

%

Arrive Washington

mortgages

"The

-

Friday, November 8th

in

home

Cincinnati, Ohio

C. & O. R.R.

Va.

'

LEE

EDWARD
,

-

home

more

JAMES B. MAGUIRE

York, N. Y.

SCHEDULE

were

increased

have

88.72

J. B. Maguive & Co., Inc.
3oston, Mass.

SAUNDERS

$7,500

more

incomes

10

44.61
—

ADDITIONAL

Dominion Securities Corp.

Hotel

Homestead

F.

WALTER

C. & O. R.R.

Va.

Springs,

or

with

In early 1957, almost five in

ues.

COMMUNICATE WITH:

Thayer Baker & Co.
Philadelphia, Penna.

Sunday, November 3rd
A.M.

___

Cincinnati.

HUDSON

M.

JOHN

11:30 P.M. Leave Cincinnati

10:30

'

R.R.

Penna.

Cocktails and Dinner Beverly Hills C. C.
C. & O. R.R.

,

"■>";

$7,500

'•snMi" than house val¬

more

ratio

RESERVATIONS' AND

FOR

b.

,

:s

Arrive Cincinnati

___

vSt, Louis
and

to

58.14

R.R.

Penna.

of

those

of

units
more

early 1957, 79%
spending units

non-farm

64%

home

69.91

Philadelphia

:j:Via Chicago

7Via Cincinnati.

-x

i;

.

on

141.90

in

owners.

$65.89

__

New York

48.24

122.65

20

concentrated

was

incomes

$5,000

s'ze
—_

(Nashville

growth

ship

"Mortgages

•-Memphis

{Dallas

,

Leave Chicago
J,;

'

POINTS

INCLUDED
•-Detroit

60.83

__

Cincinnati

WEST

all

BELOW

68.09

-.-Birmingham

R.R.

C. &0.

PRINCIPAL

from

largely
among
spending
with incomes of $5,000 or

and

SHOWN

ARE

$33.50

__

(Dallas

9:25

o w n e r

Cincinnati.

FARES FROM

SPRINGS

HOT

FEDERAL

Penna. R.R.

Arrive Hot Springs, Va.
Homestead Hotel

Drawing Room

of

Boston

Saturday. November 2nd

recent

Two In

Duplex Suite

——

Train

THE

"The

Two In

Two In

i

TO

Arrive Washington

FROM

increased

owned

28 million.

to

$312.38

——

"Duplex Suites

Sunday, November 3rd
A.M.

44% in early 1949 to 54%
early 1957, and the number of

homes

R R.

Penna. R.R.

11:00 P.M. Leave Washington

8:00

from

Compartment

Chicago
Cincinnati

The

consumers.

Bedroom

Philadelphia

Leave New York

176.85

available from Cincinnati.

be

not

of

420.82

Baltimore

Saturday. Nove7nher 2nd
6:25 P.M.

179.43

175.64

has

years

Two In

,

re¬

182.25

TO HOT SPRINGS AND RETURN

Daylight Saving Time)

houses

brought about a
marked change in the housing ar¬

in

EAST

THE

cent

FAMILY PLAN FOR MAN AND WIFE

SCHEDULE

GOING

241.26

246.08

of

during

231.34

From:

(All time mentioned is Standard and not

$174.48

sold

184.33

SCHEDULE

DETAILED TOUR

$171.79

and

235.62

Suites

Hotel, Hot Springs, Va., November 3-6, 1957:

Homestead

$165.74

constructed

54%

185.6*5

__

Philadelphia,

ASSOCIATION

Security Traders Association has released
train schedules for the 24th Annual Convention to be held at
National

The

to

181.04

__

York

New

number

$170.74
239.69

$164.53

__

Chicago

York 5, N. Y.

Wall Street, New

$168.32

Bedroom

229.30

Baltimore

Committee

c/o Fitzgerald & Company
40

Roomette

Each

From:

Chairman

44

"The

One In

Compart. Duplex Suite Draw.Km.
Each
Each
Each

One In

large

Two In

Two In

Two In

Two In

Tisch

National Advertising

lit¬

change.

TO HOT SPRINGS AND RETURN

Bedroom

Herbert Singer

ALFRED F. TISCH,

the

and

ing house prices have shown
THE ALL EXPENSE TOUR RATE

tinued support.
F.

costs,

one-fourth

about

1948

building of larger, better equipped
houses. For existing houses, most
of the price rise occurred between
1947 and 1952; since then, exist¬

Country Club and transfer to and from* the Union Station, Cin¬
cinnati are also included. (Gratuities Are Not Included.)

appreciative of Herb's con¬

Alfred

.

existing houses. In
market, higher
have reflected steady in¬

creases

Pull¬

and

Rail

.

house

new

prices
Trip

:

and

new

the

also included.

are

all most

We are

plement.

for

Single occupancy of hotel rooms when
available will be $10.00 additional. Dinner at the Beverly Hills

of

cover

tour

the train

on

hotel.

and

room)

NSTA Year-Book Sup¬

our

each

of

Meals

mans.

renewal for a

cost

-

"The price advance has differed

the Tour Includes

What

just

has

City,

his

in

sent

Special Pullmans will leave Hot Springs, Thursday eve¬
ning, November 7th at 8:15 P.M. with arrival in Cincinnati, New
York and Philadelphia Friday morning and Chicago that afternoon.
The

to report

happy

are

who used credit was $8,500.

H. J. Gifford

Opens

LITTLE FALLS, N. Y.—Harold
J. Gifford is engaging in a secu-

rities business from offices at' 505
East Main Street.

Volume

I8tt

Number 5670

.

The Commercial and Financial Chronicle

.

.

(1013)"
Exom-t-Imoort

Oar Government's Role in

other

Bureau

of

of

more

such

secure

needed

Foreign Commerce

of

security.

agencies in the field of foreign trade and invest¬
Differentiates between those activities which teni to

ments.
create

climate favorable

a

operations, and indicates

they

serve

dual role.

a

Mentions

of

success

areas

who

nessmen

have

and have reported
tunities to U. S.

.

visited,

400

some

cities

than 1,100 trade
firms.
Describes aid

more

35

in

long time been the
objective of our., govern¬

policy

ment to expand

foreign trade and
investment. Our national interest
has required such an
expansion
both

because of its beneficial

fects

to

our

foreign

policy

ef¬

and

because of the contributions
panded trade and investment
make

to

our

dynamic

ex¬
can

economy.

Actually to accomplish the ex¬
pansion, however, is not the job
of

government.

In

prise
can

enter¬

government

supporting role. It can
principal role. The

have the

never

ultimate
where
and

free

a

the

economy
have a

decisions

and

how

to

as

to

whether,

expand

trade

investment rests with busi¬
rather than;with government.
government
can
encourage

ness

The
and

facilitate

ment.

Under

trade
our

ment

agencies

trade

to

under

very

and

system

can

govern¬

only

limited

a

invest¬

create

extent

and

special circumstances

such

as, for example, in connec¬
tion with our
program for dispos¬

ing

of

agricultural

surpluses.

role

in

agencies

find,

in

have

aiding foreign

and: investment.

It

a

trade

is

useful,
the
role

discussing

we

of

government
agencies
to
differ¬
entiate those governmental activi¬
ties which tend to create a climate

favprable to the extension of trade
and investment from those which
are.

specific

the

day to day conduct of trade
investment operations.

and

aids

for

detail their

lems

business

While this distinction is

a

in

use¬

rrtmenntaCthitieDeoltZdOWonf

the

to

money

foreign

operating

subsidiary of an American-owned
public utility in order that it may
expand

its

electric

power

facili¬

ties, the loan is conceived of
direct

and

specific

aid

as

to

a

the

utility

company and also to the
manufacturer
of
the
equipment
necessary for the expansion.

if

ever,
one

we

step

have

removed,

the

effect

production

of

of

the

the

conducive

thus

and

making

it a better market for
American exports and
for
that

matter for the products of Ameri¬
can

private enterprise

the

country

in

the

loan

effect
for

In
our

may

of

trade

the

located

question.

at from these latter

in

Looked

points of view

be said to have the

improving
and

the climate
investment.

broadest

entire

possible

sense

foreign policy and

our

domestic economic policy
said

to

aid

in

the

may be
expansion of

foreign
trade
and
investment.
They both have among their pur¬
poses the

of

'

development of the sort
peaceful, ~ stable,
prosperous

world

in

which

including

free

American

enterprise,
free

*An

address by Mr. Macy
Institute on International

Illinois.

i

the

Monti-

;




,i

loo

but

narrower

successful

by

business

traders

tion in the General

Tariffs

and

through

and

in¬

Agreement

services,
move

borders.

Monetary

In

of

and

freely

Fund

people

conduct

to

management in
its foreign opera¬

of

tions.

You

surely

better

than

I

be

regard
import
were

could

can

national

across

a
very real sense, the
these efforts would be

assistance

know

how

even

much

lot

your

if

easier
could

you

operations

your

without

to

exchange controls and
controls,
if
currencies
freely convertible, if you

remit your

the United

cial

foreign earnings
your proposed

investments in other countries did
have to be screened by the

not

local

authorities; in brief,
principal barrier to your

if the
opera¬

tions was the type of
moderately
protective tariff which wo all ac¬

cept as one of the facts of inter¬
national business life.
Post

World

we

ation

War

II

that

which

after

World

II

War

clear

that

More

progress.
be

it

is

countries

free
In

goods

foreign

quota

re¬

where

cases

in

great

more

from

still

are

believe

I

into

those

of

several

made

and

imported

straints.

close

for

have

we

obtained

the

and

thereafter,

years

Progress

present situ¬

compare our

with

immediately

can

existence, the

most frequently larger

are

and the

licensing policy to imple¬
.them,
more
liberal.
The

ment

currencies
countries

of

the

major

much

are

trading
stable

more

and

they are to a very large de¬
gree de facto convertible. Due in
great
the

„

Export-Import

to

measure

International

there is

a

important
place
in
fostering
United States exports and in aidUnited
States
private
in-

mg

vestors.

new

the

efforts

It

to

seems

that

me

the

Board, of Directors of the Bank is
using its vast powers imagina-

tively to carry put the government
policy of expanding trade and
investment.

of

Monetary Fund,

recognition of the

,

Development Mission

eiir

established

newiv

sions program.
as

credit

rather
on

relying

the traditional restraints of

their

than

and
upon

fiscal

direct

policy
controls

foreign trade.

Through
grams,

sistance

our

through

program,

membership
Bonk

economic aid pro¬

in

the

technical

through

as¬

our

International

for Reconstruction

and

to

the

obtained

in

comes

good"

a

when

he

country

member be-

will

ambassador
home. Several

returns

members

favorable

the

have

made

50

over

speeches in the United States. All
members have been scheduled to
speak

about

relations

international

and

their

trade

trip.

then

trade

mis-

published by

lication entitled

portunities

freely

missions

successful

very

in

misunderstandings
our

foreign

in

tion

to

with

relations

nomic

informatheir

m

with

and

other

of

specific

them

up

about

policy

-traders

;help

be$n

clearing
abroad

economic

providing

countries

have

the

eco-

United

States.

De¬

of

0{-

missions,
of

under the

normally

three

leadership of

ment of Commerce

spend

from

months

six

con-

businessmen

Depart-

a

representative,
weeks

to

-

two

discussing two-way trade

and private investment with busiand

nessmen

in

leaders

government

the

major trading centers of
the
host
country.
They
hold
meetings and individual consultations in the major trading centers
and end up at the international
trade

fair

where

they

man

an

information booth. They sell good
will and
both

understanding of trade—

exports

and

imports. They
explain ways of doing business in

trade^nwpoiTu^UiesThTheyXPtal k
about availabilUv

?nd

me

hods of

obtaining U. S. private capital and
technology
ment

They discover invest-

opportunities

And

plain
U^dted Spates
investment »X)licies

they

trade

ex-

and

J

for

the

dynamic

ex-

pansion which has taken place in
Western Europe has resulted in
untold opportunities

businessmen

,<

to American
increase
their

to

profitable trading connections
with European businessmen.

As

we

succeed

through

technical

our

assistance and other economic de-

velopment aid programs in helping the less developed parts of
the world create modern
progressive
economies, we will by the
same token
expand the

opportuni-

for

new

and

business

increased

with

and

in

the

somewhat

general

impact of the aid program that
program has and will continue to
assist business in
many more specific ways,

in many countries for
lending by
local institutions to private en¬

terprise.

Moreover

security proaffords them to participate

gram

in

mutual

trade

financed

with

Interna-

tional

Cooperation Administration

funds.

By far the largest portion

0f expenditures under the mutual

security

and raw materials
needed-by pri¬
vately owned factories.
More
recently we have negotiated ar¬

rangements with foreign countries
to which we have sold
surplus ag¬

spend up to two months away
businesses in this pro-

gram

of

promoting

better

national business relations
at

their

travel
ner

own

and

the

usual

largely

The

expense.

-Department

inter-

only

Compays

government

diem.
0

„

.

Success of Missions

velopment (The "World Bank) and 121 prominent U. S. businessmen
newly established International have visited some 400 cities in 35
Finance Corporation
(JFC), and countries. They have made more
through the lending policy of our than 125,000 business contacts and

l under

which

Use of Currencies From Surplus
Sales
The

United

States

local

currency

obtains

frequently

from the
surpluses.
A C

sale of agricultural

substantial portion of

,

these local

currency proceeds are frequently
reloaned to the purchasing gov¬

for

ernment

ment

economic

the

which 1 have

to

rangements

develop¬

Under

purposes.

ar¬
re¬

ferred part of these economic de¬

velopment loans would be loaned
by local institutions to private
enterprise both local and foreign
include

course

United States enterprises—for the

of enabling them to have

purpose

reasonable

a

reliable

and

source

of credit in their operations.
The

future
holds
promise of
greater private participation
aid program.
Both the
Fairless
and
Johnston
reports,

-program
has
been
for
and
services
procured in
United States.
In the fiscal

the

in

recommended that steps be taken
to see to it that the vast resources
of

private

are

industry

ing out the objectives of the aid
in recommending to tne

Congress the establishment of a
Development Loan Fund, the Ad¬
ministration

1955

75%

over

expenditures

of

all

pro-

paid

were

to
consider-

American

suppliers. A
portion
of
ICA-financed

able

purchasing
regular

takes 'place

commercial

through

channels

private
importers
abroad
chase
their
requirements

—

pur-

from

suppliers of their choice, subject
to
ICA
regulations.
Announcements
dCr

of

trade

opportunities

un-

ICA

financing are published
regularly in ICA Small Business
circulars.

To

assist United States

exporters further, the ICA Office
of

Small

fio]d

Business

counselors

states

Cor

maintains
in

the

consultation

740

United

ICA

on

trade matters

The ICA is'als0 ^sponsible for
guaranteeing new priyate invest™<rnt against certain risks. Under
thls ProSram our government has
negotiated guaranty agreements
with a number of countries. Purthose

agreements, the
ready to guarantee

stands

meet

the

statutory

tests

laid

as

finance

program,

tion

gram

and

fully utilized in carry¬

more

the

indicated

its

inten¬

have the Fund enter into

to

transactions

with

private

parties

in order; to can-y out its purposes.
As I speak to you the Senate has

already
which

approved

This

legislation
principle in

this

embodies

legislative
of the

language*

House

is

The

still

action

awaited.

approach to the prob¬
private participation is
clearly of an experimental char¬
lem

new

of

At

acter.

present the techniques

for its

implementation are not yet
known although one can hazard
a
guess that the example of the
International Finance Corporation
be used

may

should
some

as

expect

time to

a

that

precedent.
I
it will tak6

secure

a

major

par¬

ticipation of private enterprise in
the
aid
program
through
this
means.
However, the important
first step of securing Administra¬
tion approval has been taken and
the next step of obtaining the

blessing of Congress is well under
way.

I started

by calling attention to

the fact that the role of the gov¬
ernment was that of the support¬

ing cast

leading

down in the mutual

end

jslation.

As

menting

agreements

countries

can

rather than

actor." I

that

should

of

like

the
to

ment

security legas
the imple-

soon

be

with

other

negotiated it will

issue guaranties against war risks,
This has not been a very large

although there

program

^hat

the

using
it

R

did

fined

Forty-seven missions, including

products

gOGds

carefully study the business against the risks of non-convertinterests in and problems of the
ibility and expropriation those
country to be visited and select new
private investments which

able to find top flight businessmen
who have been willing

substantial

a

part of aid funds has gone to fi¬
nance the import of
capital goods

even

We

been

interested

to

The counterpart of
long been available

has

—in the latter I of

areas.

Beyond

ICA

mission members best qualified to
discuss these subjects. We have

pub¬

our

Lcovctv

"in
conditions

year

These

sisting

in

us

"Investment Op¬
which
is

available

aid

far-flung

Abroad"

businessmen.
ICA

its

Those opportunities are

some portion of the local
currency
upon the operations proceeds ;of those K sales should
private business
The suceess' become
available - for loans
to
European
Pro
private investors.

the

velopment

of

course

dous impact

adjunct to the government's
ICA Aid to Exporters
trade
fair
program
it
is
now
Perhaps of greatest interest to
assuming a more or less indeexporters
is
the
opportunity
pendent status. These trade de-.
which

merce

our

the

activities.

the^

these

an

to

upon

of

First conceived of

from their

are

determine

visited, each mission

those

partment of Commerce, I would
however, like to mention briefly

importance of financial sanity and
internal financial stability. More
countries

to

potential

addition

profitable

_

Trade

and

more

jn

results

ties

While I cannot go into detail on
the specific services of the De-

States without offi¬

intervention, if

If

,

the

as

Bank
is
concerned
let me just
state that .in my view its
program
is assuming
a
more
and

„

(GATT), and
membership in the

capital

more

success

to

far

on

(IMF), as well as by our day-to¬
day diplomacy, we seek to create
the type of world where
goods,

the

As

Trade

our

International

the

Trade,

cello,

enter¬

before

prob¬
us

Through our trade agreements
program, through
our
participa¬

quotas

increasing the
area

take

vestors.

quotas

may

to

operations

of

Department of

■e'

,

in

still broad perspective our
foreign
economic
policy has among its
purposes the creation of a climate

How¬

loan

on your

however

somewhat

a

operation

look at the

discuss

more

In

ful one, I must concede that
many
governmental
operations
serve
both purposes. For
example, when
the
Export-Import Bank
leads

bearing

would

the familiar trade

even

rommprpp

To

dollar

opportunities.
However, the leads
recently developed in one
country
exceeded $30 million..;

which

.

Bank, and

far afield.

would

1

K

Government

operate.

can

conduct

Traces Dual Role
dual

prise,

in

ways

-°^nSUSS as the Export-Impoi t
UlethaCtip ties f°i£ SUCl;
agencies

:,

Federal disposal of agricultural
surpluses.
a

in

being reported
community,

are

business

ricultural

International Cooperation
Administration, and
dwells on the
prospects of loans to U. S. and foreign owned
firms abroad
resulting from foreign currencies earned from

It has for

S.

is impossible

actual

Work

another the day to day business

or

by

exporters

specific

at

way

countries

investment oppor¬
extended to U. S.

U.

foreign

The ICA also helps us in the
Department of Commerce by dis¬
covering investment opportunities

.

Agencies

summarize. I am advised that
there are at least 14
agencies of
the government which have activities which affect in one

or

investment
the

It

of

sense

to

already
numbers 47 missions, including 121 prominent U. S. busi¬

_

for

investors

greater

government agencies assist in the
conduct of foreign trade and investment are even more difficult

recently

instituted Trade Development Mission
program which
V

base

which

a

or

to

our

aid programs.

than 1,100
opportunities for trade

the

the objectives of

serve

foreign businessmen. Largely
as
a
reflection
of
those Trade
Development Mission efforts more

;

,

,

More

from those specific aids for
business—conducted by 14
agencies—in their day-to-day
where

economic

under

Fourteen

ment

:

ex-

and

in
group
and in inconsultations about 28,-

000

„

the extension of trade and invest¬

to

re-

the

are

materials,

invest with

can

ment and its

-

the

met

dividual

of supply for

sources

an

conditions

delineates the role of the Govern-

have

encour-

Among

efforts

raw

creation

U. S. Department of Commerce

Foreign. Commerce Director

we

pansion of markets for American
products,
the
development
of

By LORING K. MAC**

Director,

countries.

suits

Private Trade and Investment

Bank,

the economic development of

age

ik

gram

al

a

an

at first

has

extended

of
to

countries.
investment
must

are signs
community is
larger extbnt than

business

to

earlier
to

date.

Con¬

years

be

government and
mined
by
this

guaranteed
be

agencies have at hand tools
that are very useful for the facil¬
itation of expanded trade and in¬
vestment.

None

of

them

can

be

effective, however,, except insofar
as

business

ment

can

opportunity
and

uses

assist

for

investment.

them.*

in

Govern¬

providing the

expanded
It is

trade

the role

of

opportunities thus afforded and
through its own trade and invest¬

by the foreign

must

Govern¬

business to take advantage of the

underdeveloped
Under the statute, an
to

note.

same

pro-

the

be approved

this

been

Europe, the

recent

on

deter-

government

to

ment

the

promotion

programs expand

foreign trade and foreign in¬
of the United States to

vestments

the

advantage

of

the'J United

States and its friends abroad.

Commercial and Financial Chronicle

The

.

.

Thursday, September 5, 1957

.

(1014)

14

Today,

frankness.

Steelworkers Deny Blame
For Boost In Steel Prices

with

from charges of causing steel price
and Economist Brubaker includes in his numerous con¬

rise,

public

virtually

management

corporate

in turning attention

has succeeded

the

on

15.9

manhours to
ton of Finished Steel; this
only

a

increase

fringe

and

wage

any

in

a

Steel Industry.

parent than in the

i ii

\

along with the Union's
'Conclusions' set forth ear¬

other
lier

,"(9) Steel prices have increased
far more rapidly than have the
materials costs (prices of Mate¬

this study
adequately document this

finding

in

facts

to 1."

Cites

i'

the

cut

is

consequently, proand
employment.
The
Industry's
employment

Steel

Brubaker

Otis

McUouaia

Antitrust

fell from

and

Monopoly that
"we resent the repeated charges
made in recent years by certain
industrial leaders that our Union
on

is

the

well

other

as

who are

consumers

the higher

pay

This

months

months

10

weU

tion

faCtS~

of

to

1956

The

it

th

<hag

su<SQest

fairly

worker is pro-

steel

The

and

chosen

steel price increases have
pie JT)OSt important medium
for increasing steel Profits — administered
profits
achieved
«(2)

more

high,

output

amassing ever
"(3)

The

of

progress

are

others

to

weigh

in¬

the

dustry results in less people pro¬

ducing

steel.

more

Mr.

McDonald,

Vice-President
to

on

is also a
AFL-CIO,

who

of

point

the

that

out

"no

amount of talk and argument can

Mr.

steel

guided

plain facts.
We
our collective bar-

production and

more

employment?'
Certainly it
ability of the Steel Industry to make such choices, the
action
of its
leaders in making
them, and the Industry's apparent
freedom
to
raise
prices at will

price' Industry.

"Our Union

members naturally

gaining

interested in a profitable and
growing Steel Industry, not only

that

as

are

in

policies by the certainty
increased productivity—that

produced
per
hour
each man—justifies
higher wages and greater benefits for the employees and exerts
no
inflationary
pressure.
Ecosteel

is,

worked

nomic

by

disaster

labor

not

did

Steel

the

"If

if

to

keep up
increased productivity,

this

with

result

would

strive

Industry,"

he

added, "chooses to boost prices
despite the increases in produc-

tivity, it owes the Nation an explanation. To charge the Union
with
being responsible for this
situation
the

is

here

to

such

facts

figures.

the

with

United

the

but

States

need

concerned

maintain

to

healthy and expanding
Union

Our

members

derstandably
steel

uricin^'

steelworkers,
who

are

Is

concerned

a

economy.

iust

nn_

-is

interested

are

nolicies

but

citizens

as

in

not nniv
consumers

with

the

im-

pact of a rising price level influenced by the
movement of
steel prices,
.

year

to

$19.50 per ton.

Brubakers

price

productivity,

we
on

the

to

of time,

a

relatively long period

but

especially in

recent

Price increase, the Industry's price
administrators, as usual, com-

ignored the sharp produc-

tivity growth
"
*

"(5) The Industry's leader, U. S.
Corporation, which , initi¬
ated the 1957 Steel price increase

Shearson, Hammill Co.
Adds E. F. Durand

has normally initiated the
in prior years), could

increases

leaders.

found mention of

its of the rest of the Industry as a
group indicate that the Industry
could, as usual, have joined U. S.

Supplementing his chief's
ing

statement
with
analysis of

a

open-

lengthy

one

price
never

central fact

which would go a long way Steel in this endeavor with
toward helping the public under- larly favorable results,

in

the

Steel

July, 1957.
tt

•

Union

¥"*

E—'St

^

The

Economist

giave

1937,

"there

is

Industry

pake more money!
"The industrialists of

„(8)
a

bygone

'increases

levels

even

with

creased

simi-

than

$3.00 ($3.23) for each $1.00 of inwage

and

fringe

Westwood

%•',

Eugene

F.

Durand

Boulevard, Westwood. Mr. Durand
was formerly Pacific Coast whole¬
sale
manager
for Broad Street
Sales

Corporation and in the past
his

conducted

costs

investment

own

business in Tucson, Ariz.

A. W. Parker Joins

Fahnestock & Co.
(Special to The Financial

has

Parker

stock

Mr.

Parker

was

formerly
institu¬

the

invest¬

ments

depart¬

ment

for

the

Chicago

of¬

Before Taxes per

since

year
as

increase

$1.80 per
and ab¬
increases.

1939,

is

almost

t t

u

C

o

m

he

partment
of
Harris, Inc.

o

F.

&

n

p a n y.

Prior
Arthur W. Parker

the 8% per year
employment
costs

high

was

thereto

in the

trading d

Sills,

Fairman

e

-

&

as

in

claimed by

H

of

manhour, 15.7%

of E.

fice

of labor. It is

of Profits

of

manager

is earning a

growth

of

rate

La

Street.

Salle

tional

sorb hourly wage

twice

& Co.,

South

135

manhour
more than two-thirds as large as
the average wage, $2.62, which it

per

Fahne¬

with

for

S. Steel

U.

"Thus

W.

associated

become

Profit Before Taxes per

"Its

Chronicle)

111. —Arthur

CHICAGO,

desires.

U. S. Steel since

Selected Mutual Funds

1940."

Selected Mutual Funds has been

Concluding Comment

formed with offices at 177-79

East

City, to

which
stands out clearly above all others
set forth in this statement," the
Research Director concluded, "it

87th Street. New York

Pollak

securities business. Emil
is a principal.

is this:

Coburn

Middlebrook Brch.

is

there

"If

when

damned, at least had the virtue of

Shearson,

1310

higher than those al¬

indicated

raises

to raise prices when the




increase in prices and would
still leave Net Profits and Return
on
Net Worth at peak levels —

have

price

the Steel Industry of more

increase,

now

Co.,

any

increased revenues to

gt'eel

resulted in

era, who allegedly subscribed to
the philosophy of the public be

price

productivity increase of as
4%, if applied solely to
the offsetting of the 1957 wage
increase, would permit absorption
of the full wage increase without
as

one

fact

"(6)

s July,
namely, 'Is

^
lt pioper

avers

question ot public inter-

1

&

"A

little

loimllion

.

Quest,ons

increase

a

ductivity.

"The
Steel
Industry
raises
Steel price increases have
outnumbered Steel wage increases prices when production is high,
by .more than 2 to 1 in the postwar when it is low, and when it is
period. There have been 22 price moderate; it raises prices when
increases and only 10 wage in- supply
exceeds
demand, when
the reverse is true, and when the
creases.
it
p(?!icies *tus fa^t
"(7) Wage increases have not two factors are in balance;
conspicuous by its absence. It "ransed" a single <*teel nrice in- raises prices when profits are
is as if no company or industry
th!
of the high, when profits are low (sic),
ever raised
its prices in order to
and when profits are moderate; it
Union 2n vears aeo

stand the workings of our econIndustry's price, wages, cost, and. omic system. That central fact is
profits picture since 1939, Otis that the mainspring of our econBrubaker, the Union's
Director onW is Profit motive. In other
of Research, asserted there was contexts this fact is often brought
rio need for a steel price increase' t°rth, but in public discussions of

economic

is

Durand

show

increased pro¬

represents in this

Corporation. The prof-

tory of the

falsehood

F.

manhour that it can pay

been advanced to explain
increases,; there is almost

utter

LOS ANGELES, Calif.—Eugene

permit full absorption of the 1957
wage
increase just out of the
share
which
employment
costs

pays per manhour
from
this margin

and economic theories which have

the

posi¬

ing tables.

Hammill

costs

Steel

charges
directed
against
our
Union by certain Steel Industry

strate

financial

^

of the

are

understanding as
have to throw complete light

"Over

of

increases,

wage

and

in¬

analysis

at all,

(as it

,

Asks Why Deny Profit Motive?

and

1957. This
"The $6 increase will add about would be true even if U. S. Steel's
$545 million a year in increased 21c estimate of the wage increase
revenues
to the entire Industry was accepted and used. This is a
measure of the Industry's ability
and nearly $160 million to U. S.
..
T
Steel Corporation. In making this to absorb wage costs, if it so
,

statement

detailed

a

but instead a
added wage costs
to be met only out of that
of the increased product

ready

demon-

We

and

and

0f

steelworkers

price in¬

months, there has been a great
deal
of
discussion
concerning
prices and price increases. It is
indeed remarkable that, in the
profusion of argument, statistics

with

provide to the Congress

situation

are

margins. It brought the
creases
within the past

have put into effect a price cut of
$6 a ton,
instead of a price
increase of $6 a ton, absorbed the
cost of the wage increase, and
could still have earned greater
net profits after taxes in 1957
than were ever earned in the his-

consistent

not

and

facts

"(4) As has been true of a
whole series of Steel price increases, the 1957 Steel price in¬
crease of $6 per
ton was not
necessitated by wage increases or
other cost increases. It was de-

dcspite the level ot demand, that signed to P,oduct a further el^~
has earned it the name of an'ad- widen already excessive and to
largement of Steel Profits profit
ministered

unit

increase,

increase

share

the purpose of
scapegoat-the Union

to
all

tion of the Steel Industry, includ¬

represented by employment costs,
it would require only a fractional
further
productivity
increase
(9/10 of one percent) in 1957 to

serves

a

are
willing
consider carefully

decline. Even if

providing a scapegoat■jand lts wa£>c increases,

Ihe

these

overcome

prices;

orovidinc

them.

of

out

were

^TnV This

from

who

and

cluded

have

tivity
no

have

coincidence in liming ^ that many

more

is

increases

drawn

approximately 35% of Sales and
the impact of a 5.9%
wage in¬
crease is therefore only 2.1%; and
because with this sizable produc¬

(3)

been unie a e purposeful
g
— except for

higher

at

™
lower,

companies
greater profits.

The "Steel

"(2)

.

.
,

of

conclusions

the 1957 productivity
increase of 5% to date; because
total employment costs arc only

ly

.

™

hour

Per

administered prices.

through

a

of

went

creased costs,

th

industrv

War II period have
exorbitant in relation to in-

been

in

89.5%

to

in the

have

Union

The July 1957 wage in¬
(15.5c per hour or 5.9%)
been absorbed entire¬

"(11)
could

has

the

—

Union

of the facts."

far
rate of 5% above

a

of

These

facts

the

firmly believes that
they will likewise be convincing

1956; and 71.2% above 1939.

-

World

post

com'seof

"(1)

:

1957 is at

in

Presents Conclusions

cut Pi,ices> but it has raised them,

■

:

"(1) Steel price increases

loss of 18,600 jobs. As
operating rate dropped further to about 80% recently, the
number of unemployed rose further—probably to about 25,000.
Yet the Industry not only has not

prices.
xkt
u
f
k
We carry on our collective bargaining activities mindful of the
to

forced

'

maintenance)

and

the

millions of AFL-CIO members as

a

crease

April—a

the other

members and

our

these

for

not like inflation.

We do

conclusions.

547,400 in April, 1957, as the operating rate declined from 98.6%

has

of

welfare

the

disregarded
It

and

inflation

fostered

has

Nation.

a

strike-free

10

that

do. maintain

we

the

convince

propriety

which

%The productivity increase so

study of the facts reveals several
obvious, though perhaps startling,

level of 566,000 in the

(production
Subcommittee

the

before

.stated

"But,

can-

and

diiction
J.

to- stimulate

done

sumption

David

when

prices

This

whatsoever,

competitors to
demand falls.

statement.

of

to

_

<iit is customary for

this

all

—

served

Sharp Productivity Increase
"At the outset, the Union would
leaders in mind, David J. McDon- mand, though still relatively good, like to make its position clear,
"(10) Wage increases gained by
over
the
years
aid, President of the United Steel- has softened significantly?'
Ap- The Steelworkers Union does not Steelworkers
workers
of
America,
recently parently
the
Industry
believes allege that a fair profit level is through
collective
bargaining
that any time—whether demand undesirable.
On the contrary, a have been more than earned by
Wmm
is high or low, whether it is ris- reasonable
return on invested constantly
and
sharply
rising
ing or falling—is a good time to capital is necessary in our econ- productivity, i.e. output of Steel
raise prices. It has just raised its oiny for the maintenance of its
per manhour worked. The wage
prices at a time when demand is economic
health. Furthermore, increases could have been ab¬
far below that of 1956 and early our Union does not claim that the sorbed
out
of
the -productivity
1957.
This may well mean even Steel
Industry could have ab- gains, since real productivity in¬
less production and less employ- sorbed all of its increased costs creases
have
significantly
ex¬
jpent. In a truly competitive op- of production since World War II ceeded real wage gains of Steel¬
oration, which Steel insists it is, ended with
no price increases workers since 1939.

operating rate is falling and de-

Industry

Steel

Steel

"The facts shown in

should

away

employment costs said to be claimed by the firm.
certain

With

conclusion

the

achieve and maintain.

from the obvious connectionrials purchased by the Industry for
between rising prices and rising,
its own use) in a ratio of 2 or 3
profits. Nowhere is this more ap¬

growth of pre-tax profits is—15.7% per year since 1939—
almost twice as high as the 8% per year post-1939 increase

of

combination, of

any

is inescapable
Industry raises its
prices to maximize profits at the
highest possible level which it can

nearly 4 to 1.

was

or

factors.

"The

that

1957 the ratio

ratio of 2.7 to 1. In

one,

these

increase exceeded the

Steel price

of

repetition

required

it

1956

figure had fallen to 15.2 manhours
in 1st qtr. 1957. In 1956 alone, the

organized

—

constant

make

theory that price increases
have been forced by labor unions,

significantly exceeded 'real' wage gains of
Steelworkers since 1939." Latter states that U. S. Steel's rate

in

By

:"#i

average

the

have

increases

scapegoat

a

labor.

the industry's " 'real' productivity

clusions the statement that

the

between

figures absolve the Union

granted to its Steelworkers for the
It years ending December 1956.

attempt to ob¬

direct relationship
desire for greater

the very

profits and the raising of prices.
Of key importance in this delib¬
erate strategy is placing before the

Steelworkers* President McDonald contends facts and

United

frankness, but

calculated

a

scure

con¬

are

we

with

not

fronted,

costs

prices
costs

Steel Industry

and

all

when

go

remain
times

costs

go

up,

down, and when
in fact, the

stable;

raises prices at any
without regard to

gage
S.

in

a

en¬

FARMINGTON, Maine—Coburn
& Middlebrook,

Incorporated have

office in the Barrows
Building under the direction of
Sidney Gordon.
opened

an

Rothschild Appts. Krasny
L. F. Rothschild & Co.,

members

Stock Exchange,
announced that Norman D. Krasny
of the New York

has

been

Manager
office
York

at

of
200

City.

appointed

the

firm's

Assistant
rnidtown

Fifth Avenue,

New

Volume

186

Number 5670

: :

;

The Commercial and Financial Chronicle

(1015)

operations

Making Accounting Meaningful
In a Fast-Changing Society
By MARQUIS G. EATON*

and

There is
that

this

with

executive, economist and author,
put his finger on this problem in

accounting

some

to believe

reason

phrase

existence
code

of

results.

cision

"The

comparability is attainable; (2)
accounting postulates, particularly whether accounting principies can compensate for imperfections of money as a common

porting

of

dollars

of

appearance

net

1 and

income

cents,

in

No

tices, including persistent price inflation.
the

evolutionary

of

study

attempts

to
We

living

are

which

is

Mr. Eaton examines

accounting

to

in

an

economy

quite
different
from
the world has known

anything
before.

doubtful

whether

anyone

.alive

now

thor¬

oughly

un¬

derstands

just

what is hap¬

pening to

our

economic

sys¬

tem

and what

its

premise

that

business

income; is

public

" determination

matter

a

concern.

exact

functions

accounting-

is in the process of

evolution, con¬
adapting itself to change.

stantly
But

there

deal

future

of

what

to

appears

be

accounting

is,

shape will be.

Clearly

an

evolutionary
is go¬
—
and

.process

ring
,
-

Marquis Gr. Eaton

on

at head-long
speed.
in

quarters

other,
'ways.

and

various

react

often

bllild lip

SUreS

v

in

Pres-

eacii

upon

omy

thing that holds the
together
under
all

econ¬

these

through

passage

is

system

our

of

financial

reporting.
Financial

reporting

is

L

simply;

the expression in terms of

denominator

mon

erroneous

ful

of

a

the

com¬

whole

complex

network
of
elements
which make up a business —
land,

all

conceptions

of

to

raise

of

me

consideration

I

not

curred

each
num¬

charges

to

benefit

aghinst the
riods.

of

of

be

costs

future

a

in¬

periods

of those

revenues

Obviously, not

tions prove
when they

pe-

all corpora¬

to be permanent, and!
fail, earlier financial

statement will have proved to be

examples

A company

re¬

worthless

./

losses

one

crisis

should

other

are

\

assumptions

might deserve
"postulates."

as

or

period other

formaliza¬

The Need for Postulates
As Mr. Knauth
says,
tulates" or

Perhaps

comparability

O.

tainable—perhaps it

is

desirable.

wide

There

in

ences

the

inventory •enterprises

are

nature

which

of

identical

lead

to

only of the

even

For

but

and

deans

of

the

long experience,
changed if more

they could

be

recent

experience
shows
other assumptions would be
useful.

in

exam¬

company

the

profession,

comparatively

economic

differences

gold-mining

a

of

one

has
said
that they would be "indefensible"
if they were not
"indispensable."
They have been developed out of

differ¬

naturally

accounting procedure.

ple,

not

May,

accounting

among;

companies and industries is unat¬

cited.

*

-

these "pos¬

serious
assumptions are used,
present not because they are true, but be¬
accounting pro¬ cause they are necessary. George

properly

otherwise

tion

cedures" into undue skepticism.

which adopts the last-

than-an

which

a

"the

rising prices, less net annual in¬
come

place in

There

entailing
turn

overconiidence in

different

be

but

,

attempt to modify the "repu¬
tation for
infallibility" which is
accorded them, lest some future
financial

•

only

He also suggested that account¬

alternative

of

not

took

ants

that

items,

might

method

be

accounting

widely
an

to

dangerous.

equally
principles

the

gain

industries, or between
industries, are so arbitrary

valuation will show, in a period of

need

think,

to

up a

he add

can

three

will

the assumption
life will permit

than that of realization?

as

are

identical

amount

in-first-out

getting.

questions,

comparable

Nor

cannot

or

there

on

loss

American
know

there

year

the

Two

•T

profits which require
consideration than they have

These

methodical

But

reports of two

that

indefinite

entire

•procedure might produce.

business

been

he

radically.

the

assumption

in different

some

questions about the determination
more

of

one

from

to

the

all

alternative

procedures for

any

seems

that

reports to find a general
total. Yet that is just what is be¬
ing done.
We are told that the

of
which
might
result
in
an
.amount of net income reported in

ac¬

economy.

Accordingly, it
timely and useful

liquidation, but

know

accounting
of

we

areas

treatment

be extremely harm¬

can

the

to

the

pressures, and in the midst of this
swift evolutionary

.time,

on

counting

But

some

or

it

the

bulletins

acceptable

and cannot do. Decisions based

unpredictable

,

One

in

about

what

and

search

in

Institute.

good

a

misunderstanding

can

'

accountants

we

clarified

of

one

conditions

ber

accounting profession. To be
sure,
many
of these principles
of our economy, the method
of
have
been formally
defined or
determining profits—which is one
the

any

of

(2) The corporation is a per¬
manent institution. In other
words,
the
accounting is not based on the

generally

of

upless

other.

of

the

Now, like all the other elements

of

there is a distortion
"actual" economic results.

rate of profits in one
industry is misleading.
higher than in another; and that
that "generally accepted account¬
(3)
Profit or loss
should
be
profits as a total are a decreasing
shown usually on the
ing principles" are far from being
basis of a
percentage of the national income.
a
completed transaction. This is be¬
clearly defined, comprehensive
Such
statements are widely ac¬
cause of the
set of rules which will ensure the
assumption that until
cepted, and they may be true. No¬ the
identical accounting treatment of
transaction is completed the
body knows. Yet they are based amount of
the same kind of transaction in
profit or loss is inde¬
on
methods and
postulates that terminate.
But
every case in which it occurs. We
values often
do
are
demonstrably questionable."
now that "generally
increase
or
decrease
accepted ac¬
prior
to
Mr. Knauth went on to say that
counting
principles"
are
broad
realization, generally without rec¬
comparisons between financial re¬ ognition in the accounts.
of concepts, evolving from the actual
Should
ports of two companies, and par¬ approximate
valuations be used to
of practices of business enterprises,
and reflected in the literature of ticularly between two companies show that the bulk of the

and calls upon bankers, economists and others
help improve financial reporting.

programs,

can

reports

year

companies

Single Accounting Principle

Now,

principles, finds
prescribe uniform accounting by
government fiat, reviews the Institute's strides in research and
repugnant

progress

widely

January,- 1957,

to

change

denominator without

sacrificing other vital purposes of finan¬
reporting; and (3) problems arising from income tax and
regulatory rate requirements, and fast-changing business prac¬

the

Yet when the purchas¬
of money
fluctuates

power

system, so
comparable from

make

rounded approximations.

cial

of

single

year

re¬

instead

Journal

company to
a
that
they are

pre¬

strengthened by the

for

accountant

conform

of

The

is

"The

Accountancy"

authorita¬

some

in

of dollars.

ing

He said:

—

accounting, which
when
applied
consistently
will
produce precise and comparable

whether

article

an

"generally ac¬
cepted
accounting
principles"—
suggests to the ordinary reader
tive

Accounting profession's leader expresses concern regarding:
(1) non-comparability of financial reports among companies
and industries

conformity

accepted

principles."

the

President, American Institute of Certified Public Accountants
Partner, Eaton and Huddle, San Antonio, Texas

"in

generally

15

rec-

that
more
.

company which follows the first- •ognizes income as realized when
However, these postulates cariaccounting profession but of busi¬ in-first-out
method.
A company its product is in the refining state, .not be changed
by the accounting
ness
management,
government 'which
adopts the diminishing-bal- other companies recognize income profession
alone. .Unless
-such
agencies, investors; bankers, la¬ 'ance
method of depreciation may when a sale is legally constim- changes
were
accepted-by the
bor unions,
economists, financial show less income in the earlier mated,
while
some' companies business and financial
community,
analysts,
financial
eoitors
and
years, and a greater net income in whose products are sold on long- and * by
the
government,
they
everyone else concerned with the
instalment bases recognize would
the later years of the life of a term
only make confusion worse.
measurement and distribution
of
'given -asset, than an
This does not mean that cer¬
otherwise realized income only on the re¬
business profits.
•
•
identical company which follows ceipt of cash.
tified
public
accountants
can
The questions I have in mind the
straight-line method of de¬
Much of the demand for uni¬ escape responsibility for their owh
are:
preciation. '
formity in accounting is based on opinions as to whether financial
-

•

.

(1) How

are

profits determined?

There

a

wish for

unattainable certainty

statements

are

presented

in

perfectly sound argu¬
buildings and machinery, raw ma¬
cordance with generally
(2) Whose responsibility is it to ments to support both
accepted
inventory in man's financial affairs, and on
terials, people at work, interre¬ decide how
profits shall be de¬ methods, and both depreciation a desire that the extremely com¬ accounting
principles.
If
these
lated legal
obligations—and, most termined?
methods. As yet no sound reasons plicated elements reflected in fi¬ opinions are to have significance
important, the results which they
(3) Are the present methods of have appeared to justify insistence nancial reports be made simple of there must be objective criteria of
produce. Without adequate infor¬
what are generally accepted ac¬
determining profits satisfactory?
that only one method is permis¬ understanding, -by
even the un¬
mation about the results of busi¬
(4) If not, what can be done to sible. It would be unfortunate if informed.
counting principles. Therefore, 1
are

ac¬

...

ness

operations

intelligent

no

could make

one

decisions,

and

economy would fall apart.

Of

major

concern

in

.important.
'

business
But

to

profits

set

the

are

stage

for the questions I want to
discuss
let me restate
briefly some of the
situations in which statements of

the* net income of business enter¬
prises have significant influence
on

I

sell

(3)

-

In

decisions

to

reinvest

tive facilities.

In

levying

of

income

•taxes.

of regulated

(6)

In

price

unregulated
-'

,

(prices)
of

business.

(7) In granting long-term credit.
(8) In collective bargaining
(9) In calculating national in¬

come

and

gross

national

product.

(10) In fixing various kinds

of

.property rights between parties.
This list could be

these
*An

Illinois

illustrations

problems

to

seems

more

my

the

address

Society

countants,

accounting

Account¬

frozen,

•

views,

my

The vantage point which 1 occupy
has widened my own vision of the

by
of

Mr.

"

"

.

Ways of Determining:

Yet, I suspect it would

something of

how

is

the

For tax purposes, in accordance
the Internal Revenue

Code,

related

regulations

For

and

de¬

with

prescribed

state Commerce

111.




of

the

ac¬

plied

Inter¬

Commission, pub¬
and

other

purposes
not- subject
to
regulation,
in
accordance
with "generally accepted account¬
ing principles."
our

opinions

formal, conventionalized
on

the

we

and

vides

on

of

question

Certified
can

statements,

public

accountants

examined

believe

that

the

and

a

assurance

of

a

years

results

of

measures

mation

for

a

series

be compared with¬

may

problem.

It

accounting

have

the

help

ments,

economic

because

motivations
are

activities,

they

-

and

involve

judg¬

in themselves dynamic

and unstable.
But any

technique of methodical

tions,
as

even

communication

and

must be based

on

certain assump¬

if they

are

recognized

in

that
same

fi¬

same

all

Comparing

Oswald

The

Reports

Postulates of

Accounting

are

and

compare

or among

W.

following

industries.

Knauth,

(1)

the

this makes it
results among

business

one

can

.

understand the

sig¬
accepted
without

nificance

cial

affairs

best

of

corporations.

But

these affairs grow more and more

complex,
and

the truth is not clear
simple,- and as a matter of

fact there is

no

ultimate truth

in

practical affairs of man. As
George O. May once said, "Ac¬
counting can rise no higher in the
scale of certainty than the events

which it reflects."
this

search

there

differences

for

improved

bound

are

to

be

of

opinion,
at
any
given moment of time, as to which
method among two or more alter¬

accounting assumptions, or
to which Mr. Knauth
natives, all supportable in theory
as follows:
and in logic, would yield the re¬
The monetary unit is the sult most useful to all concerned.

assumed, however, postulates,
companies, even in the Yefers, are

rules,

No

methods

be

industry,

Accounting Principles Evolve

In

tentative.

Three

It cannot

members.

-the

to the next.

Difficulty

accepted prin¬
guidance of
its

on

the

com¬

and communicates infor¬

about

human

year"

out fear that the rules of the game
have been changed from one year

the

its

'

prothat the statements

company

attainable—

the

should

measurement

single

fairly present harder to
position of an en¬ companies
the

preceding

is
our

issuing

Ac¬

the respon¬
bulletins or

of "generally
accounting
principles"
realizing that, like the common
Perhaps it is also time for a re¬
law, they develop by the evolu¬
examination of the "postulates,"
tionary process—and their devel¬
or general assumptions
underlying opment will
probably never be
financial accounting,
which Mr.
completed.
Knauth
said
"are
demonstrably
What is happening, in fact, is
questionable."
a
never-ending search for better
Accounting is not a natural and more refined methods of re¬
science, but a social science. It porting the truth about the finan¬

prin¬

our

it

that

me

objective

for
for

Public

escape

munity in answering it.

which,

in

ultimate

of the business and financial

"gen¬

opinions that
have been "ap¬
basis consistent with

the

statements

financial

terprise

financial
have

that

accounting

principles

of

For

accounts

Ac¬

by

these

financial

companies

accordance with

in

erally accepted
ciples."

in

legal

certified

Public

systems

commissions

that

the

purposes,

regulatory bodies.

nancial

reports

results

the

both

the

whether

to

profession

peo¬

certified public
opinion stating that
fairly presented the

The clause

rate-making

we

before

some

is

is fundamental to
seems

as

carry a

income "accountant's

with

that

of

might still

business

determined?

say

Certified

shock to

a

come

they followed different accounting
statements

Profits

and

—and

*

than

I see.

In

would

future

be

establish
Eaton

procedure

and

discussed, and it ple to realize that two otherwise
right to tell identical corporations might re¬
fellow practitioners, and all port net income differing by mil¬
others concerned, what I think lions
of
dollars
simply because
no

extended, but
the

the

how the American In¬

dustries

lic-utility

determinations

event,

any

of

countants

sibility

counts

industries.

In

see

stitute

Attainable?

ciples

accordance

(5) In fixing the rates

;

and

•

pronouncements

Public

cisions.

the

community, arbi¬
prematurely, because

Comparability

reports among companies and in¬

Certified

Now,
pol¬

earnings in expansion of produc¬

(4)

trarily

Insti¬

do not

Is

business

methods—and

dividend

corporate

American

the

on

as

imposed

whether comparability of financial

of

Three

securities.

In

the

this

were

be

important decisions:

(2)
icy.

of

ants, I should say that

(1) In decisions whether to buy
or

discussing

am

decisions

such

any

adaptation to
and the emphasis with which I .changing conditions and improve¬
ment
in
state them, do not necessarily re¬
theory and techniques
would be stopped.
flect the Institute's official
policy.

tute

financial

reporting is the determination of
profits. It seems hardly necessary
to explain
why the methods of

determining

Since

President

Public's Concern in Profits
1

improve them?

our

common

denominator

to

use

in

measuring and reporting busi¬
ness
activities.
In
other words,
accounts

are

best

stated

in terms

Experience
one

is

alone

reveals

which

superior, and that method
Continued

on

page

20

*

The Commercial and Financial Chronicle

(1016)

16

&

Machine

American

To Honor

has branched out
both by acquisition and by
broadening its line. From a
machine maker serving most¬

By WALLACE

STREETE

Preparations

realtors, includes Postmaster General' SummerC. D. Howe, Canada's former Minister of

industrial

by

field

Hon.

and

Trade and Commerce.

has spread to baking and
stitching machinery, bowling

a

auey equipment, sporting

A

U.
S.
outstanding. Cana-

distinguished

dozen

citizens a„d

an

B.

11

1

•

action
action

'

.

•

i

1956—

Carl A. Bowman V.-P.

holding in a range of around
a dozen points
and available

Columbian Securities

was

was

11 *

1

1

i

J-

1

•

I

•

1

•

...

'

Xl

1

^

_

_

\,m

\

i-iriVo

nf

F.VPn

fhA

J

TOPEKA, Kans, —The Colum¬
bian Securities Corporation, Co¬
lumbian

that

Building, has announced

Carl

A.

Bowman,

formerly

Secretary of the Kansas Bankers
Association, has become associ¬
with

ated

firm

their

Vice-

as

President.

C.

D.

Howe

A.

E. Summerfield

Allstate Securities

[n Washington, D. C., on Sept. 30
4-r\

tha

nriln/ir

inrJ

urryio

I irt

r\

Allstate

Securities,

Inc.

has

I-

srelect the illdustrialist o£ the been formed with offices'at 80
Full membership of the im- cnpa<'e> in6
securities business!

I?

F__ Z

■

..

-

-

Chairman);

goods, missile apparatus and dian will meet with Postmaster Defense Charles E. Wilson, Chair()jl weH supplies. The stock General, Arthur E. Summerfield man).
k a s been relatively quiet,

recent]y at a yieid well into
in- the 3% bracket.
advance of the year as far as creasingly important
in inthe industrial average is con- dividual cases, and not very
Interesting Movie Situations
cerned, which is a decidedly cheerful at that. No less than
case
0f largely hidden
rare occurrence for this para score of dividend omissions profits
would seem to be
ticular season.
were put into the records for Loew's
which, lately, has been
*
*
*
l^t
month
and
reductions
toying with its year's low
The holiday did little, con- have been dotting the lists both because of a poor earnsequently, toward indicating right along to the tune of a jngS statement as well as bethe future course of the mar- dozen or so a month. This is cause of a bad split within the
ket. And in some circles there hardly inspiring to the bullish official family. Moreover, the
dividend is in jeopardy, what
was
doubt that the market element.
Would do anything decisive
with nine-month earnings of
until it was clear how the new
The better scores were be- 52 cents against the 25-cent
C
5
model autos are being greeted tog turned in by some of the q^rterfy "dividend" requireby consumers. If this view c°™Pa™e®
°".f ment The chief attraction in
prevails, the market has more product, highly cyclical out- £ke company is that in liquiwaiting to do since the new ps of yesteryear but since dalion some of its rich holdcars are only starting to get
have made important strides ings might figure out to
their public showings.
via diversmcation.
around three times the marDividend
Dividend

Ridgway,

Charles F. Ketterine (Secretary o£

Gloomy Dividend Action

spate of short covering gave
market its best one-day

the

Thursday, September 5, 1957

made to select the Canadian or U. S. indus¬
Distinguished impartial board, sponsored

are

pany

Day, which in recent and running its appearances
years has been viewed with on the new highs list into a
some dread: m stock market
string, was American Chicle
circles, was hurdled by the which reportedly is the substock market without any un- ject
of a proposed merger
toward selling this week. In with General Foods.
fact, on the eve of the holiday
■

.

trialist of the year.

ly the tobacco field, the comLabor

.

Leading Canadian-U.S. Industrialist

Foundry

THE MARKET ...AND YOU

.

rvl

tvrts i nts

Is

a

®

V*ri1l

*

partial board, which will choose officers are* vlncVnt^J. Sbarbatp
jjhvis
v icgthe recipient of the Society's 1957 president- i ciui G Davjs vicePresident. Paul
Tnrfnstrwl Award. wa« annminred
xvwipvni

vro.

^

mo

w •

u

President; and Bradley Sanders,
Secretary-Treasurer. Mr. Sbarbati

SS

1field, who will serve as Chairman- He will also present the
7

man

Co., and G, F. Rothschild

&

"'""nbronze statute during^thc & Co'

Society's

dinnlr

annual award

in

Chicago, Wednesday evening,

,

„

,

,

,

With Stephenson Ley decker
(Special to The Financial Chronicle)

Nov. 6.

The award recognizes "a most
OAKLAND, Calif. — Perry P.
T.
without a spin-off, a revital- significant contribution to the Piercy is with Stephenson LeyRails were able to share 111
ine participation, aiong jzecj management could industrial development of North decker & Co., 1404 Franklin St.
the
demand
at
times, but ^tth P* R- Mallory and straighten out its house and America, in the public interest."
mostly it appeared in the na- Sharon Steel, of National Dis- show a value well above the
W*U bG thG mnth A. Wayne Hough Adds
(Special to The Financial Chronicle)
ture of a technical recovery tillers m titanium-zirconium r6cent market price.
The Sable C. D. Howe, St.

Extreme Diversification

Rails' Technical Recoverv
Kaus
lecnnicai Ktcorery

.

'

•+

1

;

the

and

than

times

more

section

carrier

not

was

metal woik

dra**

a

the rest of the list. In slid-

on

ing to
since

is

a case

of

t r eme diversification. N

a

low levels not seen years has been growing into
1955, the rail average an important chemical opera-

to^ttownrightdourand "on, also which

*

Steels were, like the
kot generally

waiting

fate of the motor

the

firms

and

the

preliminary pickups in
buying by the auto makers
weren't

1355 to a thiid last year and
will approach the 60% level
next year, according to prese
projections.
*

stimulating.

verv

contribuprofit has

one-eighth in

mar-

on

—

emu
staff

r»t
of

had Wjjf

^tj> recentl»
until

recently

Canada's
Canada.s Minister
Minister

Cq,

added

been

Building.
Building,
&

s

vestoi appeal ever since tne

the

w..vnp
Wayne Hough &

m
A

■

genera1ly lgve;

to

jlas

.

xx/'.i

71

lnree Willi J» Logan
.. _

of
o£ Trade and Commerce, will be
Trade and Commerce) will be

^ompted a

ago. The chemical
tion to its operating

*

*

—

~

PASADENA, Calif.—Thomas C.

Uackett

meeting
in
Shares of movie companies Summerfield Postmastei Genei a Security
meetmg1 inSecurity
offices. Mr. Howe,

a

mX&SC&SKS
conclurive

will

attend the luncheon and afternoon

.

„

.

Brunswick,

New

Andrews,

-

tional Distillers in recent

.

AT

ex-

*

*

aspr»s.-.ff"s.
award'

peal is lacking.
*

Columbia Pictures, which
has had more success with increasing its profits than the
industry generally, has yet to
stretch its year s range to a
full four points. Admittedly

bers

the staff of

tffOt
J. Logarr &

—— * —"

Atlanta,

Cocke,

Erle

are.

to

Co., 721 East Union .Street.

Other Board Members

*

added

—

.

President, American Bankers As-

William

suciation;
Board>

Association

Faiiicy,

T.

American

of

Railroads; Samuel H. Kauffman,

Washington, President, The Eve-

the company's earnings this
11111 ^ncuu r>reaKer L.O., a
i
j
o
newish item on the Stock Ex- Year will probably be below

ning Star (representing the Amerlcan Newspaper Publishers Asso-

change, has expanded its results of last year. But
ing market leadership in any operations mostly by broaden- Screen Gems, its televisionspirited way, had at least ing its product line, the more servicmS subsidiary is extemporarily stopped sliding orthodox system. And it is pected nearly ;to double its
into new low ground. Some profiting from it. Sales rose gross this year over last year'
were available at sizable dis- from
$73 million in 1955 to and has been a valuable
counts
from ' the
peaks of $107 million last year and source of profits recently. The
earlier this year, the larger should reach
$125-$130 mil- subsidiary has been growing

Washington, Assistant Postmaster

ITE Circuit Breaker

1?.

Aircrafts Firmer

Aircrafts, while not

flnme

OOR

ma

1

„

V1XVA

the

weight of economy
talk from them, but
they are
still affected by disarmament
talk despite the fact that
highlevel operations are
time to

some

a

assum-

OJO

take

Co

sure

come.

it

i

-u

J.CI.DL

11UIU

1957

tpt.lcl,

J Cell

projections

above

the

fj

$5

•

co

.

scaled

mark

which

than

i

rv.

lAnr^f o n f

cni^iAlior

^

lilt;

are

makes the stock available at

less

qd

nf

PI

Ormonde

A.

Kieb,

General; David F. Maxwel^
President? American Bar Associa-

tion; Charles F. McCahill, Cleve-

mun-

Company of America 230 Park

American Petroleum
institute; Lester C. Rogers, Chi-

*195$

president,

Associated

oafn.l President.

wlc&uu)

x

r c ,i i u c n I.,

Gen-

waukee,

President;

and

°nti"u?d

respond to individual

No less than five different

cirrnmn

cumstances

:

p

roiQh„rt

+

+r,

comPanies> ali relating to the
of power distribution,
V " V
'
pre" were squired by ITE in re-

and,

in fact, did
the only decisive work
v C
W UI ^
x

h,! C™"bankrupt
a"?

.
ferred stocks of the

Hudson

&

Manhattan

were

cent years to enable it to
nnnri

itQ nnoratiDDc

™

Boyd T.

Philadelphia, Chairman

dane item in the automation

Barnard,

of the Soci,ety's Committee on

ing costs keeping the stock ApastSRecipients of the Society,
restrained. As a result, the is- Industrial Award and Award
gue ^ag
-n a range
ka]£ Board Chairman are: 1949—Alfred
P. Sloan, Jr. (Harold E. Stassen,
D C1—- T"
^
Thomas
J.
a dozen points this year with chairman)- 1950
a vie|d 0f above
despite WaTson (Captain

3'A

ex-

work in the glamor

-

the
new

week's
lows

posed
made

word that

off to
a

pro-

£ ?
3 ®S ln

operations markedly.
mere^19

n an<1 llle 4U-cent divi-

reorganization

no

holders.

casualties,

on

plan

provision for

such

dend paid that

way,

least quadrupled this

Going the other




year

will be at
year.

,

.,

1

field_missiies.

u.

S.

Department

Labor, Bureau of Labor
4:

0.11

TVTi^+V.

A-venue

,

of

Statis-

New

1,nuu"u

field, its profit-pinch from risto

Industry

Wison — Aluminum

W.

Avenue (ewjn

Society members serving on the
are:
E. M. Boerke,
Mil-

is the

—I.

NewspaperPubl^ersAssoc^hon;

board

Sperry Rand

Alcoa and the Aluminum

land, Past President, American

distribute to TV many of the Association of Mamifacturers,
Pictures m the files of Urn®
e?Comme?re
versal Pictures.
of the united States

10-times

earnings
for and at a yield that recently
was around 4%.

ciation);

Section-California Institute of
Technology, Pasadena, Calif,

—(Paper)—$1 (quantity prices
on lequest).
„
Development — Gerald
M. Meier—John Wiley & Sons,
Inc., 440 Fourth Avenue, New
York 16, N. Y.—$3.50.
• ;; ;*

Economic

International

and

Interregional

Economics—Seymour E. Harris
—McGraw-Hill Book Company,

Inc.,

330

New York

West

42nd

Street,

36, N. Y*.—$7.

— Benjamin F. Fairless (Henry R. Luce,

backer, Chairman); 1951

Chairman); 1952

-

K T.. Keller

W^'Merck""(Eric

[The views expressed in this 1953—George
Your Child's Sense of Responsiarticle do not necessarily at any Johnston, Chairman); 1954—Fredbility—Edith G.Neisser Public
time coincide with those of the erick C. Crawford (Patrick J.
Affairs Committee, 22 East 38th
as

those of

_".presented Hurley, Chairman); hC"Street. New Yor. 16, N. Y.They are elciHopkins (General Matthew (Paper)—25c.
nor 1955-John
Jay

the author only.]

Volume

186

Number 5670

.

Commercial and Financial Chronicle
.The

.

IT

(1017)

ing

tBank and Insurance Stocks

Am J

f*
/

~

the

few

word

.

stock,

investors

"growth"

there

felt, that

those

are

the

to

apply
bank

a

who

expression

more-or-less

question

savings deposits. * This is not

have

is

well informed observer doubts
Germany will revalue the
Deutsche mark, if it will, until after the
German general elec¬
tion. In presenting the favorable and
unfavorable revaluation

with-

synonymous

ease

metropolitan

ap-

of

among'"some

banks

the;'
larger'

the

which

arguments Dr.

carry'

plicable to banks with widespread

time deposits that

branch systems—chain-store banks

bearing; some foreign deposits are;
in this category. Therefore, where

a high official of one of our
nearly-branchless institutions once

jas

called

them

with

of contempt.

it lacks

as

of

stocks

bank

a

of

some

growth

the

the

as>

example,

-

life

4—Clevand

large

deposits

are

make

interest-;
of

part

a

t

curate,
ate:

of
;

♦v..

n
jj.

insurance

•

this

*

i

u

it,"-

-

*•

tabulation

,

has

r,..

.*■

-

and:

for

the

policyholders' pro--groups
with
dividend .pay-out posit

tection,usually being
portance.1

'•

negligible

~

volume
the

as,

insurance

nation's

•

population

grows—and the population

grows

continuously.

few
stocks

of

the

Probably not

so-called

1—Boston

2—New

toddy

will

and

continue

they have in recent

*

17.8

.7.4

7—Chicago——

25.8

the mark is
1hf> .^JUTIP
the same
%

9.3

of

8—St.

Louis—_

16.6

9—Minneapolis

20.1

8.2

22.1

10.4

JtDaiSs'8 C_Uy
.T

aie

arpn"
area.

34.9%

-t

1

,

u

u

,

Some of the Nassau County, N.Y.,
•nrimarilv

heran<;e thp pnnntv'«;

T us t e ratios in the first three
aistnets, the Northeast, are low,-

?e™pm™t
DittoP

beeV

tes

West

Coast

and

dp-

thev

would

be

Vapid, deposit cZ"d

so

ThL,

banks.

the -fvann
franc

as

until

its

lower

be

if

broken

into time and savings

persistent

France

down

also
effects.

which

^

that

no

interest

de-

Leo

of

number

banks with

branch

outlets.

proportion

large

a

i

be

land

its

is

balance

Barnes

than

areas

4.*

45

4U

as

the

of

£

"port

tent

'

a

£75

million

postwar

into

goes

on

debt

1

r««

4i

is interrupted. '
We
have
found

terior

institutional

would

not

have

been

consideration

ten

the

experience

writer's

years

generally

charge
higher interest rates for "loans
than do the banks in the North-

portfolios expanding over-the past
five or six years into bank stocks
that

banks

and

east. This being so, if around the
country rates are raised by, let

that

us say, one percentage point, it is

given

ago;

is

undervaluation of

the

A

is

12-session, series

now

,

„

•

the

.

markable
German
from the

after

is

its

destructions of

the

of

Southwest

and

Middle

West

in
general stock list bank stocks

of

vestment's:
for

A.

the

recovery

and
defeat. With the aid of hard work

and

degree

a

Germans

of

have

A+ViAr-

more

pronounced in-

trend

in

Mtain

Wiltrfed

Wactn™

oae?-^este™Ucountries, it
ijnistake to
entertain

be

Nor
mark

likely.

self-denial,

the
year

of

German

K nntof'h

«PtbT

p n

^rk TheS
vfew
X

w0rM-f0r having achieved such

a

these have

cause

regarded

peen

as

growth regions.

v

"entitled6 to'^he

are

be

can

a

«

terirr

considerable

of

measure

author of

Th

rtiiL St hi
much
-

,

-doubt

as

to

whether, under

pres-

-

conditions, they
much

as

Coast Elxch. Member

offer the in¬

value

do

as

SAN

stocks of banks in the big Eastern
centres. The accompanying tabuiation

gives

for

each

of

the

4

Who
.

liam H. Agnew, Chairman of the
Board of Pacific Coast-Stock Ex-

12

posits bear"'to total deposits; secvcndly,, the proportion
of
gross

income
"

'

banks

Exchange,
"110^7
tember 1, 1957.

time

out

that .in

deposits

are

.

Xjioya

effective'
-

V

the

increase

of

the

War?

'

reserve

to

about

the

on

German

gold

twice

the

.ambut^"of
0

a

gold reserve,
the British gold reserve,
t nnrinn
voicori
London newspaper.-raised
the
nourennnou

Sf» rhetorical
V^OctSl
worrder who has
Sep-^'

.

Mr. Lloyd is a

Won

Commenting, recently

amout of the British

OI. r^dClllC

tomlior

.

t■

It must be pointed

Uivision

Stock

that is paid in interest on

—

time deposits.
most

V-ISCO

..

: %/,

;

no

.

.

to that is only

answer

1oo

painfully obvious—and especially why and how Germany
has won -.the
place... The - lesson
..taught by the striking. difference

NATIONAL

BANK

BANK

INDIA, LIMITED
Bankers

to

the

Government !■

slid

.

Office:

West

End

26
Bishopsgato,
London, E. C. 2.
(London) Brancht
13, St. James's Square, S. W. 1.

Branches
•

Burma,

mining
over by

land

Paid-Up
Reserve

,

Capital
Fund.

The Bank conducts every

banking

and

Members

£4,562,500
£2,851,562
£3,104,687
description of

exchange

.Members
120

,

business.

Trusteeships and Executorships
also

-

I Laird, Bissell & Meeds

Protectorate.

Authorized Capital

undertaken




'

New

York

American

Stock

Stuck

Exchange
Exchange

BROADWAY, NEW YORK 5, N. Y.

Telephone:

BArclay 7-3500

.

BeU Teletype—NY 1-1248-49

*

'.

(L. A. Glbbs,

Manager Trading-Dept.)

Specialists in

Bank Stocks

worth

and

losing the
'

-

and.

exr.

her way towards

on

peace.

Whatever the

.

*
reasons

for

Ger-

on

rLv SnW

business

and

?

on

"

Emphasis is on a
appraisal of investment
objectives and opportunities, and
the avoidance of prevalent foibles
and pitfalls,
Specific t
topics include: how to
management.

realistic

specific

pick industries; growth companies

is

arguable

0f

tomorrow; "tax shelter" and
"special situation" approaches to
seCurity selection; market fore-

ox-

the

that

,

if

casting and timing; what shall the
jnvestor do about inflation?; port-

the mark,

she

could

f0ji0

receive

management; tax problems;
fund

mutUal

an(j

larger amount of imports against companies.larger amount of imports against compares,
the
same
amount
of exnorts.
or
the

amount

same

of

exports,

havinrf

tn

rprfiipp

or

and

investment

ti
tions

•

—

i

_j

a

a

-£

i.'

by

ques-

individual

class

rnembeFS-

•

/With Merrill Lynch

,

(Special to The Financial Chronicle)

PETERSBURG, Fla.—Don¬
Current has become connected with Merrill Lynch, Pierce,
ST.

serve,

ald
Would
The
a

raised
rais

lm-

discuss

also

Instruct"
instructors

exports

might be: fully as popular as the
evidence of the growing gold re-

German

would be worth

Britain is well

in

India, Pakistan, Ceylon,
Aden, Kenya, Tanganyika.

British

pondering
many millions of British
workers owing to whose attitude

STOCKS

Uganda, Zanzibar, and Somali--

the

reserves

a

INSURANCE

Kenya Colony and Uganda
Head

between

gold,

.

com-

a
a

1

..

.

of

hand.it

without

.

:

j._

monev

'she- could, reduce-her

.

the

won

books

^hmTge

Germany could change the terms
*rade *n her Iav®r by revaluing

__

mo

npr
war?"; without having to reduce her imJL-wbuid^haW' be^n more to the ports. The result would--be a
point to- ask -who has< won the higher standard of. living which

general partner peace—the

of D. F. Greene & Co.

question:

other

WUfred May,

j.

size

higher
change value of the mark. On

field.

Wil-

FRANCISCO, Calif,

Federal nroDorlion that districts, 'lon.oi £as enouncedn
first the Reserve System time de- change i\orman l,ayion.j.

Ai

nomic

the

_•

Pr?Jldes

t

a

.

-----

ent

vestor

byA

fwpiuSf£
7noPM
SrovfdS^^ nractSf^ investaiSit
Pracncal
investment

m

4

.

,

_

investment.

•

•

_

Tactics

Problems"

AHer all
thi'^ handling nf
lt ^is
of the ^old ?e S^P^ nrnhlPrnc: iSSlved hi the
matter of natiorfal pride ™ion of s™curmes and their

to make

growing

£ervf is

the
Gov-

frifin""

np

fndeed

is

f; Af, If

Sf

i• j

and

Inventing

tv,

^

war

produced

The

uil'

.„nmont

TndavV

mentator, and Leo Barnes, chief
economist, Prentice-Hall, Inc., and

hopes.

revaluation

a

Strategy

editor, columnist and radio

a

exaggerated

is

_

Dr. Leo Barnes

May

wfllriven
®-1

and

-

.

Your In-

British

and Prestl^e' and the Government
remarkable recovery
It is grati- of
Herr Adenal,er 8ets much
acted
far
more
favorably than-;- j
t
know that a nation can
Political
credit
for
having
industrials or rails, or even the
rLtore~ its self resoect nrestise achieved Anticipation of an uputilities. And why shouldn't they,;
If]lowernotM^vman^f re---valuation of the mark helPs Ger-ports, because, many,
foreign importers want to buy
also by means of iising%to the German goods before their
prices
lront rank of nations in the eco- rise as a result of the

be-

(4Tr

J

consumer

re-

of

achievement

nation

mark

the

During the recent weakness

....

? trend ot

,

would

t-VhaV? the Wp3r Lmi° the
th"e West Coast, \ht
of

stocks

invest¬

of

account

to

and

wages

flationary

lunda-•

as

a larger proportionate raise for after year large exportable surthe big metropolitan banks than pluses at competitive prices. Beit is for those in the growth areas.
nation

institutional accounts, such
companies, educa-

insurance

as

on

series> titled

vieW of the

mark.

tkmal investors, investment 'rusts,

many

<

ments will be offered
at, the New
School for Social Research this

moneTL^nfatTome abroaS
_raa? moSe^eTend.S

The view may be
over-simplified,

sections of the country. There is mentally correct,
growth another
factor that favors the
Undervaluation of the
banks in the Northeast. The in- a symptom that reflects

the

and

guidance in

ul demand' a"d gTln8

surp

nation's economy

reverse

<

are

Conceivably the rising trend

.?
Geiman

over-

i_"i

d

about when the

offers

to continue to cause much
trouble/

of

accepted

pvidpnre

oquan^perli

gross^ income than the
for
areas

interest in the growth
m

Prob-

a

strength of the mark. It has just
deposited with the Bank of Eng-

?,onsid"e<> as irrefutable proof of

of

re-

the

of

investment management problems

or

to some of the

result

a

Course at New School for Social
1
--J
Research h„ A. Wilfred M,.. and
by
May

on
foreign deposits. The
German Government is
admittedly
milfincf
making efforts to minimize 4-L^
the
inconvenience
caused
by
the

One

currency.

adverse

WOuld

conci,,ojv(*

time

Time de-

a

fact

under-

or

balances

t

as

To Be Discussed

sterling

allowed

was

recent

overvaluation

of

on

psychological

Britain

may

Sr0"?£ temptedofto.take the view Government. It has reduced its
that "the proof
the pudding is import duties. Even so, the gold
in its eating." On that basis the drain towards Germany is likely

.

tTotal interest payment.

banks have acquired the adjective

of

valuation

4

12.3%

and

that

by 20%. It is of course
very difficult to measure the de-

gree

raK th?

m the ua

L,;0

doubt

fhp

sc.

degree

its

result

'

the

be

can

12.3

,,,

,

Hpcfypp

pressure

ad-

usually kept in London and now
kept in Germany. This in spite of

valuation

8.6

25.1*

..

1 re-

~

16.7

12—san'Wan.II

a

undervalued, almost to

overvalued

6.3

as

Condi-

There

Einzig

no

7.4

15.9

- con-

siderable
P«u>

8.1

19.0

ng

of

Investing Problems"

export

ward revaluation of the
mark. As

'-Tief to sterlings

5.1

23.4

grow

nw!na
growing

:;4.b.r i

5.7

6—Atlanta—

say

quently have been termed growth

inr.pd ?n 1
m a

11.5

German

Owing to the persistent influx of
gold: into-Germany there is a
dollars, ,growing anticipation of an up-

would

part

welcome relief from

"Tactics for Today's

terms of gold
this

2.8% t

IBM's

to

years.

Placed

York__

6.6%

5—Richmond—

lions and managements do change.
The bank stocks that most fre-

tuity

<■

____

successful

a

this

unwarranted

.

n

i

be

revaluation of the mark

'adng to loss of gold.

through

re-

For

come.

the

on

autumn pressure

debit

a

verse

.and

Deposits^

ceive

often

more

has

drive, it has aggravated the

it

be

"

Time

clearing

of• the

ved,

to

would

optimism

.

Psychological Effect

:

it

a substantial credit to expect that sterling

Britain

■•«...

..

a

valued
r

to Pay Int. on

Total Deposits

not

the maintenance of the

time"

some

be Lie

Gross Inc. Used

Deposits to

to

j; Apart from the material effect

should

Proportion of

-

Ratio of Time

3—Philadelphia

have been so designated because
the growth factor has been very

Who is to

v

•••

v_

to

existing parities that it will be¬
come
impossible to decide on a
change of policy at any rate for

arEuropean Pay-

than

strenuously deny any inten¬
revalue, and the Govern¬
will
be
so
strongly com¬

mitted

proposition,
If, as is widely

District:

a

growth

potdnt in the past.
that' the duPont's

in

ment

different

Boston

in

C° /C

is "quite

the'

out

the

as

,

balance- from the_
rangement of the

•.-r\

de¬

set

assumed to

are

of

(by

v

..

Deutschemark

district, eight banks; New York,v
eight; Philadelphia, 12, etc. •-) 1 -

rated this

are

•

s-

banks

si

sterling,

^•

ratios/publication; in

im-

-

way because they

grow' in

larger

volume)

of

Also, these stocks

force

of

*

t-»

.

reason

Iranc is not likely to
to be.
®
or
the prospects of ments Union, while

been

.1

4u

^
prove

f

i^
~
stocks are definitely in the growth- 12
Federal - Reserve' districts as
category- if only because a quite presented in each Reserve
Bank's
large" proportion of income after
operating ratios -publication,/ We.
charges is retained for expansion have chosen in each* case
the
•

-i

iiovai.Lri fL

v

nrt+

i.

there

-un

nf th.

;•

*

rvnrnrvnr

German point of view

a

no

until

Meanwhile, all official spokesmen
will

change.'?

no

revaluation

a

tions to

Einzig indicates why the present mark parity
on
sterling and makes difficult the estab¬
European Common Market. Also explains why

there is "much to be
said/from

metropolitan"

concerned,

of

after the German general election.

drain

a

lishment of the

time deposits, and to use the term
"time" deposits is not strictly ac-

stock

run

the

are

bearing

attributes

investors understand the term.

-V For

banks

But it is difficult to

utilize the word for

of

some

seeming note

a

constitutes

non-interest-

are

to

be

...

A

Although

forced

-derived from the proposed system

By PAUL EINZIG

Bank Stocks

—

be

may

adu ine uerman ififlirK
ofTeconomio co there could
In any event, operation

By ARTHUR B. WALLACE

This Week

|La

countries

take
defensive
measures
which
would greatly reduce the benefits

I

Aid

main

Common

Market

A.

Fenner & Beane, 568 Central Ave.

argument in favor of
is
that
it
would

revaluation

greatly

facilitate

the

task

of

tablishing the European Common
Market. Dr. Erhart is very keen
on the idea, and it may well be
asked whether he should not be
willing to make some sacrifices

many's present economic strength,

the

~

(Special to The Financial Chronicle)
.

TAMPA,

Fla.—Jerry S. Green-

Clyde A. King, Jr., are
Pjerce, Carrison, Wulbern,
Madison Street,

an(j

f

with
jnc

to' achieve < that end

the

1

Joins Pierce Carnson'

es-

fact

source

^sterling.

is
of

that

it

constitutes

additional

German

drain

a

on

have
gained ground on countries all
/over .the five continents at the
-"exDeiise

of

their

exporters

British

com-

petitors. Month after month Ger-

pressure

pective

on

trading

by reducing
Germany's prospartners.

Owing

to.the persistent drain represented
by the German export surplus, the
Common Market is liable to run
into

difficulties

outset, and

some

from

the

very

of the participat-

Joins Central States
(Special to The Financial Chronicle)

.

MANSFIELD, Ohio—William J.
Goard is with

vestment
Building.

Central States InW a 1 p a r k

Company,

The Commercial and Financial Chronicle

.

Thursday, September 5,1957

..

(1018)

13

estimated

rently

Outlook

The 1957 U. S. Crop

10-year

will not glut

Believes the current wheat crop

outlook for

and that the weather

mercial channels,

few more or less
weather and crop
have
improved
ma¬
a

conditions

terially in recent weeks. The
look

out¬
is

now

for

total

a

U. S.

crop

productio

n

the

to

close

relatively
high

average
last

oTih'e
five

years,

Here

the

in

all
I

are

over-

present,
damage.

U.

many

enough

S.

carryover

for

; normal

season's

whole

a

requirements.

ultimate problem to

the

several

to

has

kind

been

other

the

of

grains.

Outturns of barley,

flaxseed, oats,
exceed the 19451956
average—barley
by
48%,
flaxseed by 7%, oats by 3%, and
rye by 20%. Total supplies of these
grains for
1957-1958 will
lean
toward the easy side. American

and

rye

may

turer

as

In

rent

reviewing the causes of cur¬
inflationary tendencies,

Guaranty Trust Company of New
observed that "in politics,
apparently, inflation is not where
you find it but where you want to
York

find it."

tered

"administration"
of
manufactured
goods, specifi¬
cally steel. At the same time, the
group has ignored the "adminis¬
tration"
of
wages
by industry¬
price

on

the

popular
money"

tion"

of

under

prices

of farm products
price-sjupport laws.

the

•

.,

this

for

devotees

popcorn

item.;

planted acreage is

below average.

14%

been

to

due

outlook

for

nation's

the

crop is relatively good, but
outturn, which is estimated at
around 3,066,000,000 bushels, may
be about 10% under last year and
slightly below average. Weather
between now and harvest time
must, of course, be reckoned with.
Supplies will be easily adequate
for
the
195^-1 &58 season, since
the

stocks recently were at
all-time high for the date, at

an

corn

1,963,000,000 bushels. If the hogcorn

feed ratio remains

able

as

of.

corn

it

is

as

now—16/7 to

will be

fed

this

favor¬

1—a lot

fall

and

winter.

Meanwhile, old-crop, corn
may
qyerage., somewhat
higher,
but
£ 'forecast ' some
seasonal. weakness. in new-crop
corn this fall.
prices

services,

such

medical

ago.

harvested

The

crop,

which

is

the
fall, may be
16,300,000 bags —
down 5% from the 1956 outturn
and 2% under the1 ten-year aver¬

arpund

in

only

Since the carryover will be
relatively; small, total, supplies for
1957*1958 should not be excessive.

indicated

U.

S.

rice

of
40,500,000 bags (100 pounds each)
is

15%

under

the

and

•

1956

crop

outturn

and

the smallest crop since 1950.
This could
mean
a
fairly tight

unit of output," the Survey
reports.
"Output per man-hour
rose
33.6%
from
1948 to
1956,
while hourly earnings increased
per

46.7%.

The

result

proximately
of

crease

ished

was

matched

10.1%

rise

a

unit labor

the

in

9.8%

cost,

by

an

of

ap¬

in¬

in prices of fin¬

The

experience

of U.

S.

Steel

1948 is cited

in

as an example of
ineffectuality
of
a
single
company's or industry's efforts to

the

check
a
an

inflation.

reduction

in

That

concerned

prices

increase in wages,

in lieu of
but it lasted

only three months because

wage

increases in other industries
to

for steel workers
one

con¬

rising costs of living

for

"The

ultimate problem will not
the stabilizing pol¬

as

well

as

every¬

else.

"The

upward pressure

on

underlying it, causing it, or per¬
mitting it, vary to some extent in

countries," "The Survey"

American cotton farmers in
learned

well

cultivation.




re¬

the

Even

'full-employment

commitment'
to

prevent

on

the

them

to

reconcile

one

hand and

from

FHLB Notes

on

-

callable

consolidated

group

The notes

are

that prices and yield must be within limits that they con¬
or they will not make commitments in these

of

being

as

However, it is evident from advices that

the funds which

has

1957

The

to

to

of

sharp

decrease
district

Reserve

the

on

Among factors
specified
are
policies,
full-employment

programs,

ernmental

escalator clauses, gov¬
loans

inconvertible

and

subsidies,

currencies,

budget¬

extravagance,
and

currency de¬
balance - of - pay¬

attempt to improve men's lot by

providing, them with more money.
In
the present
instance, laborunion pressure, the 'cost push,' is

savers'

sizable

a

accounts

are

commercial

in

last

week

was

loans

the

in

New

York

attributed

of commercial bank loans.

course

securities

were

priced at

provide funds to the

make

from

mainly to the
repayment of loans from the proceeds of the sale of long-term
securities.
A continuation of this could have a retarding effect

Paul Shipman With
Colonial Management

proceeds from the offering

and

come

put

paper, the 91-day bill, is not too far away from a top as
yield is concerned. As a matter of opinion, not a few money

Federal

to redeem $146,000,of 3.70% notes due Sept. 16,

banks

or

notes

will be used
000

it has been

state and municipal bonds, the buyers
very much in the driver's seat.
This

still

100%.
Net

as

Even though there is more money around

additional

'

BOSTON, Mass.—Paul A. Ship-

credit

Upon completion of the financ¬
ing, the banks will have a total of
$765,000,000
consolidated
notes

outstanding.

Director of Trade Relations-Prior
to

World

&

ner

Beane, investment brokers.

was

for

10

eral Partner of Colonial Manage¬

the

as

a

ment Associates, of

Boston, Mass.,

it

bv

was

Orr,
firm.

announced

Managing
After

Boston

a

James

Partner

of

few months

H.

to

with this

firm

j before enlisting in

Navy Where

1941
of

associated
years

1946,

he served

from

the

rank

rising to

Commander, u

.

•

the

at the

headquarters, Mr, ShiDman

the firm's hew office in
Francisco, and will be pri¬

R. L. Ferman Adds

II, he was an ac¬
in the Detroit of¬

fice of Merrill Lynch, Pierce, Fen-

He

has been admitted

War

count executive

Gen¬

man

will open

farm

ary

decline.

obligations

bonds.

liquid

1958,
was
made
yesterday
(Sept. 4) through Everett Smith,
fiscal agent of the banks,, and a
nationwide

rates, since the way in which
received will tell whether the level of the

market specialists believe that a down turn in short-term money
V rates is overdue.
■

16,

dealers.

or

state

Decline in Short-Term Rales Possible

Market

public offering of $191,000,000

Federal Home Loan Banks 4.60%
non

municipal and

bonds which will determine

new

The uptrend in short-term Treasury rates continues, and last
week the bill rate of 3.571% was the highest in more than 24
years.
It is expected, however, that the rate for the Government's most
far

A

of corporate,

interest

arousing

irresistible political opposition on
the other."

says.

These are described as "the old

Cotton and Soybeans

but

with

prices

is world-wide, and the conditions

different

effective
the

are

of

four-year 4% issue.
optional redemption
enough to have con¬
purchases of the re¬
cently offered refunding 4% note by small and institutional inves¬
tors is keeping the market for this obligation in very good shape
which means that it is the leading issue in the intermediate
maturity group. On the other hand, certain other middle term
Treasury issues are getting a small amount of maturity buildingup buying.

make

to

course

to work in the two-year,
The" return on thfe four-year note, with the
at the end of two years at 100, is still large
siderable attraction to small savers. These
now

a

available for their member insti¬
tutions.

valuation

of intensive

room

and the middle of October there will

now

offerings

new

borrowing long-term funds will remain

amount

dated Sept. 16, 1957 and due June

goods."

ment abuses.

art

ample

them

"Changes in prices of finished
have
always
closely
paralleled changes in labor costs

statistical position sometime next

yeais have

been

hond

being

offerings.

ment

rise in the velocity of circulation,
the "Survey" declares that:

be

Close Parallel

year.

cent

there has

rent,

products

age.

The

transportation,

as

laundry

care,

tributed

The outlook for dry bean pro¬
duction is less-ifavorable than a
year

prices of

been

icies

corn

total

in

according to the publication.
Sees

Corn, Dry Beans, and Rice
The

rise

a

commodities but to rising costs of

the

4% Ontional Note Issue in Demand

the' fact that

supply and

of

money

course

According to reports, money from savings banks and Gov¬
ernment savings bonds are still being reinvested in non-Govern¬

Frablems
have

near-term

increasing amount of

bonds.

effective); because of
vast,.earlier increase in .the

money

curb their appetites

au¬

partly

new,

because the indicated crop
of broomcorn.is Well above aver¬

"steadfast

Reserve

factors

>

fairly limited in scope. The attraction of the more distant Treas¬
ury bonds to investors at this time is largely confined to those
pension funds (mostly public ones), that must make commit¬
ments only in Government securities.
As against this, there are
all the other investors that have to look at purchases which they
are making from the standpoint of the best available yield com¬
mensurate with the safety of the money being invested. This means
that new issues of corporates, state and municipal bonds, are still
very much more attractive to investors from the standpoint of
yield and income available than are Treasury bonds.
Accordingly, until there is either a decrease in the yield of
non-Government bands, or an increase in the yield of Treasury
bonds, the purchases of investors is going to be made up almost
exclusively of the higher yielding corporate, state and municipal

pressure

these

those who

Accordingly, while this test of the money market is going on,
the interest in long-term Government bonds is quite likely to be

most

as

While

only

large

obligations

of

means

yield to political and

Ultimate

are

sider to be attractive

for
cheap
being the main factors
opposing inflation.

the

year

the

and

Federal

the

an

It is the flotation of these

immediate

new

wide unions and the "administra¬

statistics indicate that most of
plenty of the rise in living costs over the
clean-sweeing; brooms this last five or six years has not

However,

very

of these

,

of

on

for investment in corporate,

Guaranty credits balanced Fed¬
budgets

effect

marked

a

There is evidence of

will increase

requires (and) without currency
stability all the other aims are
illusory."
'

thorities to

As against these thoughts, there

periods because between

activating force. Yet the
underlying cause goes far deeper.
Currency stability is in peril be¬
cause the people, in their pursuit
of other aims, have rejected the
discipline that currency stability;

eral

com¬

Money Market Facing Severe Test

visible

refusal

is

The money market is entering one of its heaviest distribution

these

and

what

available for the purchase of bonds.

be

immediate

most

on

effi¬

merchant.

or

housewives should have

age.

have

market.

policies to "full-employment" commitment without arousing
irresistible political opposition.

,

may have to

will

be the reconciliation of stabilizing

wheat,: however, is in
The bank's 1 business and eco¬
government hands, and will not nomic review, "The September
glut commercial channels. I do Guaranty Survey," noted that a
not believe the current crop will
Senate
subcommittee's
inquiry
prove burdensome.
into economic conditions has cen¬
Nature

the next

with well-diversi¬
should, however, fare
the average manufac¬

crops,

putting

flotations will continue to be heavy for
few weeks and the way in which they will be received-

farmer,

well

as

been

,

Guaranty Trust's review of real causes of inflation notes close
correlation of prices to labor costs per unit of output. Depicts

Most of this

Mother

fied

The

economies.

has

The long-term capital

cost

of

July 1 of 905,000*000 bushels—

practically

further

cient

market

As long as this will be the case, the powers that be will not be
taking any pressure off the money market.

Real Causes of Inflation

a

20% under the 1946-1955
average. This is still a relatively
large crop, since in seven of those
years production topped one bil¬
lion bushels by sizable margins.
The current crop comes on the
on

the end of the year.

the

nearly

U.

of

Government

hold the opinion that interest rates will go still higher because of
the big demand for funds, both for bank loans and capital spending.

S.

crop

total

Outlook

Income

bonds.

915,000,000 bushels—down
from the 1956 outturn and

a

record-high soybean
S. crop-cur-

Despite

acreage, the 1957 U.

around

of

crop

years,

the heavy marketing season in the
weeks ahead, but should recover
thereafter.

wheat

total

heels

serious

Governments

on

monly known as a backing and filling performance, which gener¬
ally takes place when there is no definite trend to be discerned.
There is no question but what the money market is still in a state
of some confusion.
Some money market followers believe that
interest rates are reaching a peak and will tend to decline before

them.

look for

I

8%

price strength

barring

at

is

corn

sustained

for

basis

com¬

The

planted acreage
Farmers'
realized net
income
high
per-acre
yields this year may give them in the first half of this year was
at an annual rate of about $12,100,a
crop of about 11.900,000 bales.
This would be sizable, although 000,000—up 21A% from the cor¬
considerably less than indicated responding 1956 figure. Whether
domestic consumption and exports the
second half will .record a
in
1957-1958.
This
points
to- further gain is doubtful, in view
another substantial cut in the still of the rising trend of production
big carryover next Aug. 1. Prices costs and the difficulty of offr
may
weaken moderately during setting them through the practice
the

in

Reporter

By JOHN T. CHIPPENDALE, JR.

beginning Oct. 1. There is no

year

picture, as

see

1957
Roger W. Babson

a

,

smallest

on

highlights

few

Our

in

Since stocks

average.

Farm

in

Except

1956

positions were recently at a
record peak, there should be no
dearth of soybeans in
the crop

still uncertain.

restricted areas,

the

but 58% above the

all

Encouraging prospects are held out for U. S. crop production,
and for the efficient farmer with well diversified crops, by
Mr. Babson.

428,000,000

at
below

record outturn,

BABSON

By ROGER W.

6%

bushels—is

Harriman

Ripley Adds

(Special to The Financial Chronicle)

San
CHICAGO, 111 — James D. Macmarily concerned with investment Donald has been added to the
advisory services. Colonial Man¬ staff of Harriman Ripley & Co.,
MIAMI, Fla. —Ralph H. Whitagement Assoc. is the investment Incorporated, 135 South La Salle
more has been added to the staff
adviser
to
The
Colonial
Fund, Street.
of Robert L. Ferman &
Co., AinsV
Inc., Gas Industries Fund, Inc.,
ley Building.
(Special to The Financial Chronicle)

and

With Suburban Sees.
(Special to The Financial Chronicle)

CLEVELAND, Ohio-^-Arthur J.
Meloche
Securities

is

now

with

Suburban

Co., 732 East 200th St.

of

The

Bond

Investment

America.

Trust

Joins Union Security
(Special to The Financial Chronicle)

to the In¬
CHICAGO, I1L—Owen W. Gibvestment field'after serving as an
executive of the Gillette Company lin is now affiliated with Union
for more than 11 years- For the. Security Co., 29 South La Salle
last three years he was Gillette's Street.
Mr. Shipman returns

Volume

186

Number 5670

.

The Commercial and Financial Chronicle

.

.

(1019)

would

total

$53,350,000 compared shares outstanding—20,000 shares,
par value $20.) *

with $42,411,000 on June 30, 1957.
Notice

News About Banks

oe

ers

NEW BRANCHES

Bankers

and

OFFICERS, ETC.

REVISED

Michigan City, Ind., increased its
common capital stock from
$365,-

quarterly

also

increased

dividend
fii

the

of

The
New

York

at the Bank's 34th Street and

City Bank of

office.

Avenue

Sept. 3 announced
the following appointments:
on

165

Nelson

Mr.

5th

is

at

Broadway.

Central

;

Garrettson

District
from
ant

Dulin,

of

Jr.,

Domestic

Assistant

:

*

The

'

Western
Division,

Cashier to

Assist¬

E.

Company,
nounced

western District of Domestic Divi¬

:

sion, to Assistant Cashier.

;.

George
C.
Young,
Assistant
Manager at Exchange Place office,
to

Assistant

Banking

Cashier,

District

Personal
Domestic

of

Division.

The

year

in Peru,

City

Bank

First National

transferred

Canal

J.

Trust

the President of the

on

Republic, Dr.
members of his

Prado,
cabinet, the Archbishop of Lima,
public officials and bank clients.
The branch is under the

super¬

Dewey, resi¬

Gresser,
a
ViceManufacturers

the

died

New York

Company,

Sept. 1 at the age of 67.

Vice-President, and R. Loren
Biggs, Manager. Mr. Dewey has
served

40

in

years

the

bank's

South American branches and has
with the

been

1921.

Mr.

Lima branch

Bank,

later

Lima

Robert

1946

known

branch since

Franke, Vice-Presi¬
in charge of First National
City's South American District,
represented the bank's New York
office

head

dedication

the

at

First National

City has 71 over¬
branches, offices and affili¬

ates in 24 countries.
f'.

■

ir> "

tz

the

to

cal

Corn

York,

Exchange

The

members

new

Chairman.

Helm,

H.

are:

John

M.

Lincoln

Andrew

the

of

Overby,

Vice-President

and Director of The First

Boston

Corporation.

Trust

banking field, consisting of prom¬
industrial

age

States

the

leaders from

and

abroad.

This

are:

Other mem¬

Walter J. Beadle, Vice-

President, E. I. duPont de Nemours

Co., Wilmington, Dela.; Antonio
J.
Bermudez, Director General,
Petroleos Mexicanos, Mexico,
&

Hakon Christiansen, Dep¬
uty Chairman and Managing Di¬
rector,
East
Asiatic Company,
Ltd., Copenhagen, Denmark;
George F. Ferris, President, Ray¬
mond
Concrete
Pile Co., New
D.

F.;

York;

Dr.

Chairman

Mauricio
the

of

Hochschild,

Manufacturers

New

York,

died

Trust

Board

of

the

in

1931

Vice-

as

President in charge of the inter¬
national banking department. He
retired

group

in 1953.

Chairman, International
Chicago; and Henry
Sargent, President, American
Foreign Power Co., Inc., New

Caffrey,
B.
&

York.
s

Roy

s

s

M. Monk and Richard

E.

the

for

Directors'

issuance

basis

of

one

of

new

ital

new

to

the

to

advisory committee of the
Manhattan.

Chase

Bank's

42nd

Street Branch.

Warren H.

fi:

:i:

Eric

*

*

Bank of Madison, N. J. died Aug.
a

Baker

A.

it

was

has

Mr.

announced

been

fi:

Bank

and

burgh,

Pa.,

Company,

Frank

Vice-Chairman

of

Sept. 3

on

by

Helm, Chairman.
Baker
joined
Chemical
He is

a

member of

the bank's Investment Division at

been

where

Street

Broad

30

Assistant

he

Secretary

has

since

1956.

of

Stockholders

York

%

*

*

Midland

The

Company

Trust

Marine
of New

will be asked to approve

Pitts¬

New

Bank

in

continue

charge

of

with

the

1926

until

1948

he

worked

New

In

August,

1948,

Logan National becamd
Kensington Office of

Mpllon National Bdnk, Mr. Hud¬
was appointed Assistant Mapager.
' *
v"•"
son

Directors

of

pany,

fered
for

resolution

a

Sept. 4 by the Board
the

of

Trust

Com¬

the new stock would be of¬
on

each

a

basis of
4.95

one new

shares

of

share

present

outstanding stock at $50 per share.

plus $30,000,000.
It authorizes
an

appointed

Milburn

G.

Company,

been

Cashier

Assistant

National Bank

Mellon

has

of

and Trust

Pittsburgh, Pa., Frank

Denton, Vice-Chairman of the

the acceptance

of

offer by Marine Midland Cor¬

poration to purchase all stock to
which it may be entitled plus any
shares not subscribed for by other

have

Mr. Milburn started
career

in

tional Bank,

his banking

with the Pitt Na¬

1942

which later became

part of the Farmers Deposit Na¬
tional Bank.
He joined Mellon
Bank in 1950 when the Farmers

Ralph L. Williams, Vice-Presi¬
Society for

of

September.
Mr.

on

Williams

began

his career

Aug. 8, 1908, when he

his first

job as

a

Citizens

with

the

Company. He

ranging

obtained

bank messenger

Trust

jobs

from

Savings

and

held various




Minnesota*

.

the

National

Duluth,

Minn.,

effected

was

charter

of

the First

National Bank of Philadelphia for
a

number of years.

In

February,

he "

1950,

Assistant

an

was

Cashier

of

Bank of Hawaii and for the next
several

worked

years

with

the

Research

Department i a n d did
Manager
Relief
work.
Just prior to his new assignment
Branch

.

he headed the Personnel Depart¬
ment.
"•
'
.?
\
•
r 7 '

Lubelkin, Regan
ft

Kennedy

The New York Stock Exchange
firm of Seligman, Lubetkin & Co.,
Pine

30

Street, New York City,
its name to Lubetkin,

changed

Northern

and

under

the

the

title

effective
the

date

"North¬
of

consolidated

con-,

bank

01

divided

of $20

into

104,400

shares

stock of the par value

common

each; surplus of $2,112,000;
profits of not less

undivided

and

than

$1,151,852.

•
*

sis

SJt

Little

North

Rock,

Ark.,

Rock,

business

The

North

announces

Little

it opened

Aug. 30.

officers

of

the

bank

new

C.

Jack

Barnett, President;
Cherry, Vice-Presi¬
dent
and
Cashier;
David
M.
Phelps, Vice-President.

are:

Edward

H.

fi:

fi:

fi:

stock

a

capital stock from $1,500,000

mon

Having
for
of

served as Vice-Presi¬
the People's National
Lakewood,
Ohio,
Mr.

Williams

&

Regan
names

Margaret Kennedy

Kennedy, adding the
Regan, who re¬
the
company
as

of John G.

joined

cently
floor

partner, and Mrs. Margaret
Kennedy, an active partner

E.

Lloyd E. Lubetkin, senior part¬
of the firm, which he estab¬
in 1929, said it was the
first. change in
the company's
ner

lished

$1,700,000 effective Aug. 21.
(Number of shares outstanding—

name; .in 23 years.
;
.
With the inclusion of Mrs. Ken¬

170,000 shares, par value $10.)
fi»
:;s '
s-c •'

nedy's name, Lubetkin, Regan &
Kennedy became the first firm in
the history of the New York Stock
Exchange to add a woman's name
to its title in recognition of active
business participation. ...
Mr. Regan, a member of the
Exchange since
1940, was for
many years a partner of Gregory

to

.

The

Board

of

of'Co¬

Directors

lumbus Bank and Trust Company,

Columbus,

Sept.

Ga.,

announced

on

2 the election of Mr. J. J.
to the position of Vice-

Chairman of the Board of Direc¬

chard to the position of
&

Contract

Blan-

James W.

tors and of Mr.

fit

President.

fit

for

remodeling The
Bank of California, San Francisco,

open Dec. 15.
William S. Pfeifle,

well known

San Jose banker and civic leader,
been

has

the

new

Bank

California's

of

sixth

the

Manager

appointed

of

office which will be The

to

be

16th.

acquired

Resources

now

fie

Charles

Friedman, long

an ac¬

tive partner, continues has associ¬
ation with the firm as a limited

partner.
Mrs. Kennedy already holds
number

of "firsts" for women

a

in

the investment field.
She

is

ant

to

authority oi^ mutual

an

funds and

serves

as

fund consult¬

investment organi¬
zations
throughout the country.
Closely allied with this work is
many

"Woman's

the

Dollar" Program
originated in 1949 to
women
and their families

which

help

she

understand and solve all

phases of ;
domestic money problems,
budgeting to investing. The
program has taken her on speak¬
ing tours in over forty states

their

since

from

February of this year, as a part of
the bank's present expansion pro¬
gram.

& Sons..

is

It

total over

where she has addressed hundreds
of

groups

on

"Money

in

the

Family."

fie

Directors of the Bank of Hawaii,

Hawaii,

Honolulu,

Francis J. Moore

a

have elected
Vice-President,

according to R. A. Peterson, Pres¬
ident.
In his new position, Mr.

joined Society on Aug. 2,
1942, as Manager of the Savings Moore will be in charge of the
Development program
Department. He was promoted to Business
Assistant Vice-President in Juner, for the Head Office.
Mr. Moore, who has more than
1943, elected Treasurer in June,
years
banking
experience,
1945, being elected Vice-President 25
and Treasurer in May, 1954.
joined the Bank of Hawaii in 1956.
fi:

Lloyd E. Lubetkin

since 1952.

dividend,
the
St. Louis County National Bank,
Clayton, Mo'.,* increased its com¬
By

Charge

of Collateral Loans.

Bank

Prior to this

associated with

was

City National Bank of Duluth."

At

bookkeeping $562,000,000. fis

clerk to Vice-President in

dent

First National

tjt

Deposit became the Farmers Bank
Calif., new San Jose site has been
Office of Mellon National Bank.
awarded, President Edwin E.
He worked in various divisions of
Adams announced.
Construction
the bank and in 1954 was trans¬
at
the Second
and
San Carlos
ferred to the Tabulating Division
Street location begins Sept. 3.
of the Principal Office of Mellon
Contract completion date is Dec.
Bank.
9, and the office is scheduled to
❖
*
*

fi;

stockholders.

also been

ern.

Pease

The common capital stock of
Should
the
proposal be ap¬
appointed
Assistant Managers-International proved by the stockholders com¬ The Kent National Bank, Kent,
capital, surplus and un¬ Ohio, was increased from $300,000
Division of Chemical Corn Ex¬ bined
change Bank, it was announced divided profits, giving effect to to $400,000 by sale of new stock
(Number of
on
Sept. 5. Mr. Monk is located current earnings over dividends effective Aug. 21.

Nelson

fi:

&

fii

Savings, Cleveland, Ohio has an¬
nounced his retirement the first

on

outstanding—16,000

Duluth,

ing that time was appointed As¬
when the

stock of the
bank at a special meeting sched¬
uled
for
Oct.
2,
according to
George C. Textor, President.
Under the terms of

luth

banking
National

Logan

sistant Cashier.
the

Security

Minnesota National Bank off Du¬

for

Kensington Office.

in New Kensington in 1926.

From

the

The American National Bank of

wil

Wilson

J.

Mr. Hudson started his

a

common

stock, the

stock of $1,500,000;
City National Bank of

R.
Denton,
bank, an¬

dent and Treasurer of

approved

new

common

000,
ap¬

210,000 share increase in the out¬

standing

of

with

the

Vice-President

career

joining Bank of Hawaii
Manager of the Foreign
Department,
Mr.
Klenske
was
as

elected

fi:

value $50.)

par

Northern

nounced.

the

Before

Will have capital stock of $2,088,-

*

Trust

operations.
in 1947

.

shares,

solidation

years.

pointed Manager of the New Ken¬
sington Office of Mellon National

ap¬

H.

Bank in 1946.

*

ber of shares

He had been

of 94.

age

board member for 42

bank announced.

pointed Trust Officer of Chemical
Corn Exchange Bank, New York,

the

of

increased from $400,000. to
$800,000 effective Aug. 21. (Num¬

under

Barton, retired Pres¬

ident of the former First National

R.

*

been

surplus to and
The
$2,617,040.
The bank estimated
Duluth, Duluth, Minn., with com¬
total capital, including undivided
mon stock of
$600,000 consolidated
profits and reserves, will exceed
as of the close of business
Aug. 22.
$6,000,000 by Sept. 30.
The

William

Kay has been elected

has

was

and

$

Stuart E.

Beckett

also

was

Vice-Presi-.

According to R. A. Peter¬

with

Vice-President

a

Klenske

Assistant

Bank in Los Angeles.

common capital stock of the Park
National Bank of Chicago, Illinois

Aug. 30

issue would raise cap¬

$2,105,600

48,500

—

Department of the Chicago
Chicago, 111.

Bank

The

(Number

fi:

By the sale of

share.

a

new

he

D.

••is

to stockholders of record

$32

new

shares held,
stock would be offered
seven

fit

of

Harvester Co.,

the

on

$

fis

Island

in all phases of banking and dur¬

companies, Out of the proceeds $2,100,000
Santiago, Chile; Oivind Lorent- would be added to capital, and
zen, Managing Director, A/S So$8,400,000 added to surplus, mak¬
bral, Oslo, Norway; John L. Mc¬ ing capital $12,500,000 and sur¬
Hochschild

the

de¬

of 64.

is

executive committee.
bers

head

bankihg in
1919 with the Liberty Securities
Company of the Liberty National
Bank.
He
joined the Manufac¬

headed by N. Baxter
Jackson, Chairman of the bank's
group

the

of

Company,

Harold

Advisory Board on
International Business is the first
of
its
kind
in the commercial

United

retired

Sept. 2 at Tucson. Ariz, at the

on

Chemical's

inent

Johnson,

international■ banking

partment

Schiff, partner of Kuhn, Loeb &
Co.; Dr. Henry T. Heald, Presi¬
dent of The Ford Foundation, and

On

share for each

as

New

announced on Aug. 29

was

Harold

by

Bank,

stock.

Robert

Business of Chemi¬

International

10 to act

recommendation

*

turers
Or-

three new, mem¬
Advisory Board on

The election of
bers

Vice-President.

Mr. Johnson entered

ceremonies.

seas

July, 1927. In July, 1945, he was
appointed
Assistant
Controller,
in January, 1955, he became

and
a

Long

Ralph B. Hudson has been

Through a merger, Mr. Gresser
joined
Manufacturers
Trust
in

1953.

dent

the

as

and

M.

Sept.

Bank.

Commonwealth

Biggs has been with the

Overseas Division since
with the

since

at

April, 1906, in what was then the
the

Reuben
elected

of

R.

an

son, President, Mr. Klenske will
be in charge of the Head Office

National Bank,

Trust Co., Garden City, N. Y., for

28 at the

Mr. Gresser began as a clerk in
Germania

❖

Trust

called

sale

value $10.)

par

Bank,

fi;

by

consolidation

.

dent

Industrial

fi:

of

$485,000

special stockholders' meeting

was

at

to

:!:

fi:

oi

A

000

stock effective Aug. 19.
of
shares
outstanding

shares,

26,320 shares of additional capital

office, to which he is pres¬
ently assigned.

Edward

Arthur H.

bank's

the

to

President

of

*

Standard Bank
which was absorbed by Manufac¬
turers Trust Company in 1927. He
was appointed an Assistant Man¬
ager in 1940 and an Assistant Sec¬
retary in 1945.
In 1951 he was

New York dedicated its new six-

vision

an¬

Flanigan,

with

messenger

story building in downtown Lima
on Aug. 29. Invited
guests included
Manuel

is

C.

Street

*

Marking its 37th

Vice-

Sanders began his banking
in 1925 as rack clerk and

career

South¬

York,

New

by Horace

Chairman of the Board.
Mr.

McLean,

Bernard

President of Manufacturers Trust

Vice-President:

William

of

Assistant

an

as

share.

of Directors.

appointment

Sanders

a

:j;

fis

Garvin, Assistant VicePresident, Overseas Division, to
Manager of the branch at Caracas,

Trust

Brooklyn, N, Y., elected H. Sidney
Landau, Chairman of the Board

Lester

Venezuela.

:$

the

Charles
elected
dent.

*

The Merchants National Bank of

120

Company from 60c to 70c

The First National

*

specal meeting,
Broadway, will

Directors

CAPITALIZATIONS

*

mailed Sept. 11, to stockhold¬
of record, 3:30 p.m., Sept. 10.

be held at

to

CONSOLIDATIONS
NEW

the

of

19

He

was

Bank

of

formerly Manager of the
America

in

the

Philip¬

Haas With Bache Co.
(Special to The Financial Chronicle)

HAMMOND, Ind.—Herbert W.
Haas has become associated with
Bache

Co.

&

conducted

business

in

Mr.

his

Haas

formerly

investment

own

Hammond,

Fahnestock Adds
(Special to The Financial

to

Staff

Chronicle)'

1952,

FLINT, Mich.—Dorothy F. Stol-

was with the
American Trust Company in San

pin is now connected with Fahne¬
stock & Co., 346 South Saginaw

Francisco for 20 years.

Street.

pine

Islands from

and, prior

1947 to

to that

The Commercial and Financial Chronicle

(1020)

20

they

profession

of the

and

the

greatly in

of

Thursday, September 5; 1957

..

business. But or sloughed off. It will - become
early' Chairman entirely consistent only when it :
of the Commission, the late Je¬ ceases to
grow."
;
;
;;
The Profession Examine Inflation rome
Frank, are worth remem¬
But to say that
accounting must ;
The Institute has given this ad- bering:
"Accounting isJ the ' landevelop, like common law, by the
mittedly complex problem exten-' guage in which the corporation
evolutionary process, is not to say
sive and intensive consideration, talks to existing stockholders and
are
historical

Continued from page 15

..

excess

costs.

words

by

an

•

Making Accounting Meaningful
In a Fast-Changing Society
~'

Meanwhile,

adopted.
there

A

Ji..! J. J

problems of accounting
are being rapidly solved. We must
squarely face the possibility that

Progress in Accounting

corporate

to

ex-

ecutives and found opinion widely

tinrt

all of the

variations in practice.

are

ions of hundreds of

that

has been made does not mean

generally
however,

becomes

eventually

Another

divided.

similar

will be conducted in the
ture.

economic and social changes may

.

.

In

'

'

-

i_

of

the

i

•

public

re-

\

ness

and accuracy

standards1, of

To

lems

thorough¬

[must be]

uruiu.us rignx now,,novtiol
11
nf

.

HP IV*
Here

™

accountants.

end,

"which ^orii^t^rriVht

never

^

this
■

public

to lose faith in the

/»

_

_

ports

fu¬

near

that

sure

reason

'j

survey

.

-

be

has

'

: 1

pro-

A

102
is

O

partial list

a

not

rM*siVi

of

prob¬

yet solved:

<

Unsolved Problems:

:

tected. In understand that certain
We have made some
progress,
groups in the profession are movahead in good stride
hut
composed of accountants, lawyers, mg ahead in good stride . /
but"
some way to go in esliquidated.
corporate executives, labor lead- if they are unable . . . to do the Publishing the most* useful and acers,
economists and government job thoroughly we won't hesitate ceptable practices in connection
ning of this century corporations
Taxation and Accounting Methods
officials.
For
some
four- years, to step in to the full extent of with income-tax allocation, where
reported whatever they pleased, if
The income tax, for example, with Rockefeller Foundation- sup- our statutory powers."
f^e amounts shown oh the: tax
anything, and kept their accounts
It must be remembered that
ronnrtin<s

ivmioi

ac

be creating new problems at least
as ranidlv as older ones are being
rapidly as older ones are being

i'i-

Hicfinlinf*

a

reporting as a discipline
is relatively young. At the begin¬

nancial

according
tions.
not

tjheir

to

best no¬
audits were

profession was
ress

ago

as

the

narrow

of

subsequently gone through six or
seven
revisions. As long ago as

the

to

to eliminate

and

requirements

reporting

cedures

etrated

accounting pro¬
been demon-

had

which

ought

which

believe

The

be

two

methods,,

of

publications

had

porting of corporations.
Trend
From

Toward

a

r

Uniformity

to the

1939

present these

the

able

nancial

presentation.

its

these

Yet

fast-changing business practices.
Accounting Responds to Change
The
widespread
adoption v of
pension plans differing in nature,
legal structure and procedure; the

the

of difference in accounting treat¬

items in financial

of products within

corporate entities; the swift-run¬
ning tide of mergers and consoli¬
to

many

in- 1914

-

Interstate
for

.

consolidated

Com-

the

increasing amounts
research, advertising

eplit-ups,
in
stock-option
and
stock-purchase plans.
They set
standards for inventory pricing,
dealing

railroads.

points

was

cited

as

losses which might

or

distort income, accelerated depre¬
ciation for tax purposes, and vari¬
other matters.

Taken
sents

a

a

as

leaseback

of

plants < and
ma¬
these deveolp-

chinery — all

of

ments have created

host of

a

new

and complex accounting problems.

should continue to de depreciated
on the basis of historical
costs, or

whether

United

1

this

Some

praise*

Fortune

distinguished

public

reporting
has

in

attracted

,,

should

be

repre¬

foreign

some

States
.

depreciation

adjusted to reflect changing price
levels.

considerable achievement.

Compared with
practices, financial
the

'

whole

.

.

magazine

hind

1

of

industrial

years.

more

m

accountants

business

sively

leaders

certified

and

argue

many
persua¬

that

reported profits are
grossly, overstated, and capital is
being taxed instead of income,

On

On the evidence, how¬

something

to give the world than dol-

salesmanship and

L
mass

production.

That something is truthful report¬

ing of what

goes on.

public accountant is
part of the U. S.
corporation lawyer.

a

still

has

an

The certified
now as

scene

much
as

Abroad,

unlimited

world

the

he
to

conquer."
JBut thp fact that mnpli
me iaci tnat mucn
piogiess




thinking of such things

am

to

costs, the handling of exploration

followed

.

us

corpora-.

^

tions." Just

few

a

months

ago,

six',

pointedout
changes that would
,

organization

treatment

a

have

be

and

costs,

the: accounting
and
development

research

costs of timber and mineral tracts

Study of the problem neverthe-

it

has

in

not

the

felt

best

cerned

TTn

it

that

tn

nnw

be
would-be

interests

of

all

con¬

recognize

to

as

in

con¬

formity

with generally accepted
accounting principles the adjust¬

ment of

flect

depreciation

the

current

so

to

as

value

of

dollars

actually invested
depreciating assets.

this

Actually,
from

the

in

problem

the

of

in money as a
of exchange and a meas¬

values.

whether j

The

changes

question

in

is

accounting

principles can compensate for the
imperfection of money as-a coih'
'

*

mon

*

denominator -without

ficing other vital
nancial

purposes

reporting.

principles/Until-such changes

type which present baffling prob-

are

made,certified public.accountants lems in accounting. ;
cannot

certify

*

financial

ments of railroads

state-

;

being in

as

We

sacri¬

of fi¬

the

thoughtful

other

-

hand

certified

many

public

ac¬

countants and business executives
not

do

believe

that

it

would

be

desirable to determine profits

on

a

basis

which,

in

effect,

substi¬

tuted replacement cost for actual

of fixed

cost
nize

that

assets.

They

inflation

recog¬

confiscates

capital, but contend that this
not

be

cured

by

can¬

accounting.

Rather, they hold, amounts should
be

retained
4-

from
±.

profits

to

re-

achieved much
in the form of

lm-

the

generally accepted financial statements, but there is
principles.
still much that could be done to

accounting
;

them

make

A

Responsibility of Other Groups

more

" effective

and

readable.

The New York Stock Exchange
has a responsibility for the finan-

The Institute intends to continue
its

..reporting: practices" or listed
companies, and ;has actively en-

attack

all

on

these

problems,

We would welcome the advice and
assistance of those who share the

couraged-improvement

of
acresponsibility .with
us.
Meancooperation while we ask the understanding of

counting,- methods in
with
-*

the

Institute.

;

-

;

.

The:*; accounting
fvio

/

all concerned that these

teachers,
a oiianntinct

A

i

'nocnmhrl**'o

rill

Association,.have 'assumed'
of

a

problems

dynamic
never-ending;

are not simple; that in a
cnnijtvr

'

through'fhe American. Accounting'society
coapwi
nrirl

o1iqy»ci

flnnf

and

share

nai.qr^niirlinrt.

oi-q

they

that

are

there

w> nrr

may

ka

oiiK_

n r\

be

sub-

no

responsibility for the develop- stitute for.time and experience in
accounting * theory, and finding solutions.
*
-

ment '-of ;

.

have

issued

a' number

-

This

financial

of

h

useful*

/

{

statements on-the
Other

brings .us to the question
who is responsible for the
development and enunciation- of
0f just

accounting principles which
be

regarded

as

cepted."

may

"generally

ac^

subject^
•
such
bankers,

groups,

Whh Goodbod J & Qq

a

(Special to the financtal chronicle) '
BOSTON, Mass. — Richard H.
responsibility to advise how. Fitton has become associated with
financial statements may be made Goodbody & Co., 140 FpHpral -Sf
^nr^hnr,v ^ Pn 140 Federal St.
analysts,

economists,

financial editors,

and

may

have

-

some

more" useful for the purposes they
are intended to serve.

He

process,

sibility for the results.

'

•

Corporation managements have
primary
responsibility
for

the

their
The

financial

own

statements

tions

by

selves.

the

are

practicing
public

,

responsibility" for

statements.

r,

•.

Bache

1

.

&

-

Rejoins Goodbody

v

DETROIT, Mich. — Aurelian F\
Wigle has rejoined theA staff of
Goodbody & Co., Penobscot Build¬
ing. Mr. Wigle has recently been
with

D.

B.

Fisher

Co.

the

had

With Merrill Lynch

the

weighing

the

(Special to The Financial Chronicle)

question-whether

representa-

has

...

(Special to The Financial Chronicle)

profession-of' certified

accountants

formerly with

was

Co.

,

■

or

companies

Obviously corporate

themman-

new
practices
TOLEDO,
Ohio — Edward : A.
proposed changes; in account- Gemerchak, Jr., is now connected
ing; principles met the test of with Merrill Lynch, Pierce, Fen->
fairly 1 presenting financial posi- new & Beane, 616 Madison Ave.

agement does have and must have

tion and results of operations to

a

an

in determining the broad
objectives and- basic ^assumptions
part

powers

and its regulatory powefs

that will facilitate,
impede, sound finan¬
cial reporting.
a
way
rather than

As

ties

a

matter of

fact, the Securi¬
Exchange Commission
has authority to control

and

already

the financial

reporting of a major
segment of business society. For¬
tunately,
the
Commission
has

wisely chosen not to exercise it,
preferring to enforce the principies developed in the evolution^

ary

process

extent warranting the conscientious expression - of a; professional opinion, i
7.
T

">»

„

■-

,

the

>

(Special to The Financial Chronicle) ;

MEDFORD, Ore.,— Paul Meyers

„

Is Progress Fast Enough?
We

must

face

my"- final
question — whether progress has
been * fast? enough to meet the
needs of our fast-changing society,
now.

now

3S

Perhaps; the present process is
satisfactory. The following state-

Smither

Justice- Holmes

in

The

Common Law, seems to be appli¬
cable- to the development of ac¬

connected
&

Central Ave.

Co.j
;

with

Inc:,
'

1

14

Zilka,
South
.

'

With Wm. C. Roney Co.

.

.

(Special to The Financial Chronicle) ;

KALAMAZOO, Mich.—William
H.

Emery has been added to the
staff of Wm. C. Roney & Co., 162
East Michigan Avenue.

•

counting

principles:
is always approach¬
ing,
and
never
reaching
con¬
sistency.
It is forever adopting
new
principles from life at one
"The

law

end,

and

ones

from
iiuiti

Joins L. W. Chamberlain
(Special to The Financial Chronicle)

RED

WING, Minn. — Seth G.
has
become
always retains old Withers
connected
history at the other, wtlii .li. w* Chamberlain & Co
xiisvury hi xiib olncr, with L.'W. LMiUDGrJ

it

cvuiuuuir

by

„ZiIka, Smither Adds

.

.

in

.

cordance with

Responsibility for Accounting
Principles

±

piaCe assets at current costs when

have

provement

ac-

cial

arises

weakness

a

medium
ure

re¬

f

integrity.

I

the write-off of goodwill, the

major

have

of

be¬

reporting

asset cate¬

of which are old mat¬
have plagued us for

gory, many
ters which

was

date—far

1' inancial

the

it

1957

By

tute

companies

suggestion.

underlying corporate financial reMarch, 1956, in discussing the when the difference between
deporting.
' accounting standards of some Eupreciation charges and the cost
ropean countries, said: "U. S. ac¬ of
Government Responsibility
replacing worn-out facilities is
countancy is certainly not perfect, not
given recognition as an ex¬
Government, too, has a responand even if it were it would be no
pense.
sibility
to
exercise, its
taxing
substitute for traditional business
ever, U. S business has

variation

lems in the intangible

model in account-

a

mg textbooks.
completely out

with differences be¬
The accounting profession,
In an informal, voluntary way,
Perhaps the most significant of through the
accounting and gener¬
Institute, has
ac-<and in varying degrees, all these
these
recent
developments
has cepted the
ally
accepted* accounting
prin¬
responsibility of lead- elerqents of our society have had
ciples, for treatment of pension been the steady decline in the ership
in the incessant search a part'in bringing the methods of
costs, current assets and liabilities, purchasing power of: the cur¬ for better methods of financial determining and reporting' busiThis has touched off a
and' goodwill and other intangible rency.
reporting./ But it does not have,- ness profits to a point far in adassets.
They deal with special debate, which has now been rag¬ cannot assume, and in my opinion vance of where they were 40
problems
arising
in - long-term ing for ten years, around the should not permit itself to be .re- years ago—even 25 years ago.
construction contracts, extraordi- Question
whether fixed assets garded as having the sole respon- - Throughout M this n

ous

of

regulated

good »,many
in
in practice

a

the

At

tax

nary gains

practices
..

.

disclosed

promotion

future

periods; the huge
statements in a wide variety of
circumstances. They cover ques¬ investments in-new plant, equip¬
tions arising in quasi-reorganiza- ment, or exploration whose prof¬
tions of corporations, in corporate itability can be determined only
mergers, in stock, dividends and by future events; the sale and

tween

statement

.

which

did ; exactly

for

arid other activities which tend to
benefit

for

The

Commission

"P^^e J1? ICC-rules.. inqrder.to
continuesT The'institute'iom- bring them into harmony with ana of intangible drilling costs in
segments of mittee has periodically reveie\yed generally^a c.c e p t ed>-accounting the oil mcfustiy, and otheis of this
may

may be
less desirable in terms of fair fi¬

dations;

of

the

committee of the American Insti-

Few

supervisory functions, but

devoted

ment

to

or

allowances and replacement costs.

may

designed to
to perform

are

agency

areas

bulletins have narrowed the

statement

which are being explored in an
time,"the: ICC
:a c e o um-t i n g classification - was attempt to reduce the number of
hailed as reflecting the best ac- differences to a .minimum;* ; ' f
ecting
There is a large group of prob¬
counting thought of the /lay. It

issued

has

its earlier rrmrliisinns

rules upon-some

business that

re¬

,;

on

ac¬

..

standards

en¬

pose

diversification
-

-

income

1 ess

accounting.

accounting.

have

financial

on

this

be

im¬

They

day

ing procedure has been publishing
research bulletins indicating pre¬

influence

-.

the

retained to make up the
difference
between
depreciation

must

rules may become precedents of
procedures,, which are mandatory
:
upon
companies subject to the "accepted accounting."
And there is a third force that
SEC's jurisdiction. Since 1939, the
Institute's committee on account¬ shapes accounting: the impact of

wide

on

merce-

gesting supplemental statements
showing amounts of profit which

this

gradual
development of better accounting

These

.

progress.

subject, sug-

Regulatory bodies, too, have a
profound influence upon present-

since its formation, in the

ferred

the

on

* •

committee

procedure

releases

thei

'•

Institute's

accounting

preferable.

members !vof

r

mil¬

accountants

the

to

44

'

pay

to

in

comment and dissent by

that

the price of abandoning a law¬

one

Commission,

Exchange

..

n

portapt respects to the figures

the

uniform

if

economy,

....

and

■

income-measured

the

of

Group.

method of de¬
termining net income in favor of

The

and

15

ful and acceptable

experience to be
profession has co¬
operated closely with the Securi¬
ties

pages of

lions of dollars in additional taxes
as

by

unsound.

whole
...."

^

great misfortune

business,

....

he in- counting rules were to be pre- organization of the financial state¬
ments.
V,''*V-c-'i'.
recommending as a scribed by governmental fiat. It
We recently made a survey of
objective the deter--would probably mean the end of

of

insist

were

nancial

a

American

*

approximately equal purchasing power, was subject to 32

Ac¬

Service.

hardly

can

stockholders

1926, certified public accountants
working with the New York
Stock Exchange to improve fi¬

It would be

jn- for

units of

public—

acceptable

Revenue

countants

type of information to be included
in financial statements, which has

the

and

as

mination

best methods for
reporting results to

of

through

even

development
brochure recommending the

a

business

period of inflation: The

a

terpreted

the

seem

Internal

the

in

Board

serve

in

come

adopt

shareholders

and the Federal Re¬

Commission

to

purposes

practices..

accounting

determining

long-range

ways

of differ¬

areas

It
cooperated with the Federal Trade
in

ences

of

whichever ac¬
counting methods will result in
the least tax.
These may not al¬

1917, the American Insti¬
began the ef¬

>

.

conclusions, which might

inclined

tute of Accountants

fort to

lem

alternatives ' exist
business management is naturally

As long

in the last 40 years.

port/this Group studied the prob-

permissible

There has been impressive prog¬

.

.

healthy. Where

ful but not always

ins

lourvovc

n/ifnnnf-intf

"

infant.

a mere

Income Study Group,'-'

r\f

r.nnnnricori

dilemmas.

and the accounting

required,

spawned a whole new set of
Its influence is power¬

has

own

Independent

1947, the Institute sponsored

"Business

a

untrb

accounting

which have not yet been absorbed

Inc., 315 East Avenue.

'

Volume

186

Number 5670

-

.

.

The Commercial and Financial Chronicle

.

(1021)
price around 1694 stock yields 6%.

Continued from page 5

It is

Public

one of the most stable
utility
issues, having fluctuated between

Utility Securities

12%.and 18 since 1951. The priceearnings ratio is 12.9 which com¬
pares with an average for other
integrated gas companies of over 14.

By OWEN ELY

Columbia Gas
Columbia Gas is the largest gas
system as measured by

revenues,

which

are

.currently around

$350

million per annum.
Including both
wholesale and retail

System
about

serves

12.5

million

ship

be tapped at lower depths in
the Appalachians, below the strata
which have long been producing.
Thej.company will also' explore

Stock

has

shown

tremendous

postwar growth with current
1946.

Columbia

Gas

System Inc. is

a

each

geted

-14

drilled in

from

areas

the

production.

will

also

be

cl'ack open producing

sands

M

in each state, subject
only to the state commission} and
company

one
interstate company performing production, storage and trans-

un-,

mission

operations which

will

be

for

subject only to the jurisdiction of

joint

venture

the

Power

Commission.

steps in this plan have already been completed. The program should eventually simplify

spend

its

on

own

plants

Columbia Gas' retail business is

mainly in Ohio whex*e 55% of "its
customers

located; 18% are in
15% in West Vir-

are

Pennsylvania,
ginia

Kentucky,
and

remaining

the

and

New

in

Virginia

York.

Maryland.

12%

of*

Sources

rev-

enues

last year were about as fol-

lows:

residential

and commercial

47%;

industrial

18%,

wholesale
(includ-

was

follows: purchased

as

the

scheduled

two.
to

carried

was

to

down'

common

mittees

Gas

has

debt. There

are

plies of natural gas to bolster its

about 22,873,000 shares. The

inadequate supplies in the Appal-

pany

take

and

of

care

over

idea

sion

is

Transmission

—4—

a

Others

_

/

„

.

'.

,

in

From

to $1.44.

in

was

that

1949

the

low

in

the

30,

dropped

$1.30,

weather

-

point

they
years

due to favorable weather
and

to

months

12

1957
as

the

addition to celebrating his
anniversary, Mr. Schwartz's
firm, Sutro & Co. will, on Sept.

18,

1957

versary

celebrate
as

Charles

its

75th

anni¬

member of the

a

Sutro

Co.'s

&

Gustave

and

Ex¬

founders,

Sutro

Stock

Exchange.
Another important milestone in
Schwartz's

Mr.

reached

reaches
.

will

career

be

next year when his firm
its 100th birthday.

Preceding

the

floor

the

of

presentation

on

the

Exchange, Mr.
Schwartz was guest of honor at a
luncheon given for him by the
Exchange's
this

the

event

Agnew,

presidents

past

chairmen of

board.

Hosts for

William

were:

Bertram

and

E.

H.

Alanson,
Lloyd W.

Douglas G. Atkinson,
Dinkelspiel, (Exchange Counsel);
Frank
M.
Dwyer, Mark C. Elworthy, Marco F. Hellman, Ron¬
ald

E.

Kaehler, George N. KeyG. Willard Miller, Earl T.

ston,

Parrish

and

Ferdinand

C.

warmer

*10%

now

its

of

season.

obtains only about
total
gas
require-

ments from its

own

wells. The

In

-

'

past years contingent
earnings, resulting from rate in-

re-

collected under bond and
producers
in * the
Appalachian not yet approved by regulatory
field but more largely from Texas commissions, have been a substanand Louisiana, the latter gas being tial factor in share earnings. In
transported - by
Texas
Eastern the June period, such contingent
maining

90%

Transmission,
Transmission

comes

from

other

Tennessee
Gas
and Gulf Interstate
.

Gas.
Ultimate

for

over

1

deliveries call
billion cf, and the comdaily

panv estimates

add"

at

least

that it will need to

48

billion

cf.

to

its

each year for the next
five
Digitized foryears. A large part of this
FRASER
supplies



,

(net of income tax)

proximated 10c a share but
almost offset by contingent

ap-

were

Dividends have been

raised from
present

$1

30c
rate.

in

gradually

1946 to the
At the recent

with

note

stating

written

slightly
the

that

letter

a

"I

since

lows.

ruary

However,

as

empha¬

the

February lows might develop
final phase of the major

the

as

bull

market.

The

technical

per¬

formance of the past three weeks
has provided
additional reasons
for

longer-range

view

of

skepticism.

the fact that

the

sixth

135

years

truly

the

great

In

fate

of

in
is at stake, I intend to
market

follow technical and credit devel¬

opments

closely

very

from

this

point on."
After

writing

letter

one

on

"Bank Credit Trends in Two New

Eras" I

forced to bow to the

was

In a letter dated April
18, 1956, under the title "A Tech¬

nical

Probability Facing Import¬
Test," I conceded that the
market had probably reached the
ant

end of the road with the

fdllowing

explanatory comments:
"The

PAUL, Minn. — Earl D.
joined the staff of John
&
Co.,
First
National
Building.

letter

dated

the caption

a

all-

new

time record high of 521.05 on Fri¬

day, April 6. At the time I
writing I assumed that the

ing

was

ad¬

would

me

continue, thus giv¬
opportunity to explain

an

in greater detail the technical re¬

Jones &

technical

a

keep

chance to present

pattern

designed

to

foster further

advance, the market
proceeded to stage a performance
that, on the basis of past experi¬
ence,
appeared
admirably
de¬
signed to lose friends and alienate
people.

OMAHA, Neb.

—

rall is with Merrill

Fenner

Developments

this

a

personal forecast. All

is to report that on pre¬
when

the market

"Since 1919 there have been six

the market yielding

examples of
V.

similar

Clyd D. WorLynch, Pierce,
So. 17th St.

& Beane, 305

Joins

adverse

ing

the

to

CHARLOTTE, N.
has joined

Snyder

&

Church Street.

Co.,

technical

those in

in the average.

divergence

The
con¬

recorded.
Breadth
its high on May
20, at a
below
its
January
high,
ever

level

while the industrial
average con¬
tinued its
advance to

July 12,
520.77 it was 21 points
highest level in January.
By Monday, Aug. 20, it had de¬
clined to a closing level of 470.14.
where at
above its

This summary of the breadthprice relationship since March 15,
1956 explains
why I have been
bearish
stock

the

on

major trend of the
reflected by the

market,

as

Dow-Jones

industrial

average,

since April

18, 1956. The current
breadth-price relationship is the
reason why I must continue bear¬
ish

on the major trend of the stock
market and why I do not believe
that 1956-1957 is merely part of

another

horizontal consolidation
similar to 1946-1949 and

range

In the course of its emphatic
divergence from price since May
26, the breadth indeed has not only
broken its February low of this
year but it has also broken through
its lows of 1955-1956.
This is a
technical situation drastically dif¬

ferent from the breadth-price re*
lationship of 1946-1949 and 1951In these two periods it was

not

only

that

consolidated

the

indications

evidence

dur¬

industrial

industrial

in

a

average

horizontal

Consolidation

range..

average

was

by

con¬

firmed

by a consolidation range
in breadth and also by a consoli¬
dation range in the rail average.
In, the present situation

the

rail

has
accompanied " tft*
breadth index in breaking through
average

the lows of 1955-1956.

not

much

mean

have

to

followed

not

breadth-price relationships

over a

number of years. To me, however,
with 31 years of daily association,
I

am

afraid

to

take

the

position

that

things will be different this
time. Despite all the changes that
have taken place since the New
of

the

1920's, when breadth
in the spring of
1956, the industrial average turned
down also. Even though it turned
down reluctantly it was obviously
not saved by the great changes
in economic-political relationships
adverse

since 1929.

Perhaps these changes will save
industrial average from fol¬
lowing breadth and the rail aver¬
age through the lows of 1955. Un¬
fortunately, I am compelled to
respect the historical probabilities
calling ultimately for a visible de¬
cline
in
wholesale
commodity
the

de¬

prices, industrial production and
taken place
well operate
to slow down the completion of
the old economic sequence.
It is

past

four

weeks.

A

ket

of

1954-1956

has

made

its

high."

commercial bank loans.

changes

Tl^e great

have

that

since 1929 may very

conceivable
may

Technical Probability Holds

A.

the

of

staff

on

index

day-to-day comparison with
these six previous turning points
in average price trends indicates
that the probabilities favor the
viewpoint that the great bull mar¬

technical
probability calling for a bull mar¬
ket top has not been violated al¬
though there have been two ex¬
tremely close calls. The first was
Up

C. —Lois

217

breadth

be

that

several

required before

years

we

get

around to the final step of liqui¬

Goodbody Staff

(Special to The Financial Chronicle)

Goodbody

reached

turned

do

reached

Furthermore, in

reached

Era

Technical

can

peak

nected with the July highs in the
average was one of the most em¬

who

to

(Special to The Financial Chronicle)

els

may

F.

Lynch

its

breadth-price

This

represent

of

staged a divergence pattern pre¬
ceding and following the best lev¬

people

had

to

tailed

With Merrill

below

March 15, 1956.
both
cases
the

going. Unfortunately,

James

Co., 407 North Eighth St.

well

the

a

price

In connection with the two
close

needed

before I

closing

approximations by the industrial
average of its 1956 peak it is in¬
teresting to note that on both oc¬
casions to breadth index
stopped

bull market

Bertram

with

521.05

quirements

was facing similar technical con¬
ditions, subsequent developments
were unanimously unfavorable.

—

the

the

had closed at

Bank

Mo.

calling

for

the week-end after the industrial

vance

recent

as

April 6, 1956 to remain inviolate.

trading

average

was

July 12, 1957 when the average
closed at 520.77 before
yielding to
the historical probabilities

'Stock Market Facing
Important Test' was written over

vious occasions

LOUIS,
Oberg is now

The second

as

1953.

April 9 with

I

Bertram Jones Adds

520.95, only
closing high of

April.

1951-1953.

Hazen has

rate

increases by suppliers, so that the
net amount was only about lc a
share.

a

point I would like to
the fact that what I
have to say from here on does not

creases

revenues

on

Nuveen

ST.

some

business

emphasize

(Special to The Financial Chronicle)

Columbia

ended

courageous

"At

With John Nuveen

earnings

prevailed in the heating

of

in

sized in the March 6 letter, it was
possible that the recovery from

Smith.

(Special to The Financial Chronicle)

ST.

keep

Aug. 2, 1956 when the indus¬

trial average closed at
10 cents below the

phatic

letter

paragraph

were

charter members of the San Fran¬

cisco

rarely

inevitable.

(after

63c in

to

past three

ended 'June

———'

and

,and

In

change.

technical

to

trend

not

many com¬

50th

1947) but thereafter

However, part of the 1956

conditions

^

"7.

Total 1.00%

.

share

temporary .recovery)

gain

22
__-w

36

advanced

'

-38

Distribution

of which

'

declined to 84c in

18%

15

years

stock to maintain

common

45% ratio.

1953.

Storage

the next five

and

1956 balance sheet:

Production

for construction

year

earnings record
jn
^ie
postwar • period
has
been
somewhat'
disappointing,
Earnings reached S1.20 in
1946

breakdown of the

by a

a

Columbia's

present divi-

of the company s business

indicated

corn-

expects to spend about $80-

sale of
a

.

the

of

of

only about $12
to
$19
million
Would have to be raised through

■

sales to customers.

consists

common

ioo million

rapidly increasing demands for
house-heating, etc. It has had to
obtain these supplies at
a
time
when field prices were increasing
rapidly and thus has been handicapped by regulatory problems
arising
from
rate
adjustments,
affecting both purchased gas and
Some

no

icant minority interest, and parent
company

fields

on

the

as

temperature,
weather
date, month and year.

maintained

high equity ratio in the postwar
decade, though it was allowed to
drop from 61%'in 1947 to 43% in

the

to

probabilities indicated at the Feb¬
ex¬

clock that not only tells time but
will
keep him abreast of the

dustrial and household use."

beeii

achian

and

the

of

March 6 because the market as
reflected in the averages has con¬
tinued to advance in line with the

Exchange

Exchange's
President nine times during his
50
year
membership.
A record
unequaled in the Exchange's 75
year history.
In recognition of his long and
active servicefjWilliam H. Agnew,

myriads of other products for in-

preferred shares, only an insignif-

Columbia's- major problem has
the acquisition of new sup-

He has served

ress.

the

final

in

change records, he has continued
to play a vital part in its
prog¬

from which "can be manufactured
miracle fabrics, explosives, and

entire funded

'

member

operation about December 1, 1958.
A recent booklet issued to em- Chairman of the Pacific Coast
ployees entitled "What's New for Stock Exchange, in the name of
You
and
Columbia"
describes the membersip presented ex-Pres¬
graphically
the
hydro-carbons ident Schwartz with a handsome

48%, wages 14%, other operat- 1956, recovering to 46% in 1957
ing expenses 7%, maintenance and with the issuance of additional
depletion 6%, taxes 12%, fixed stock on a rights' basis. Capital
charges 4% and balance available structure is very simple, holding
for common stock 9%. A decade
company debentures (including a
earlier only 32%
w7as
paid for small remaining amount of conpurchased
gas
and about
15% vertibles) constituting almost the
stock.

oldest

member of the

a

on

refused

have

Sept. 3, 1907.
Since that day, according to

in

gas

,

became

The

be

a

oil). 4%> Disposition of rev-*

enues,

connect

are

Columbia

31%; and miscellaneous
ing

pipeline to

Sidney L. Schwartz

on

about 813 million

quite complicated.

the

their

with

more

the

of

based
record

relation

prices

The

Exchange to

for the construction of extraction
and - fractionation
plants and a

company's" regulatory probr
lems, which in the past have been

on

been

activity."

after¬

honor

proposed
Commercial

the

step

point of membership. Mr. Schwartz

A

with

stock

2

noon

Solvents has failed to materialize.
Now .^Columbia
is
planning to

Federal

Some

chemicals.

and

floor

is said to be especially rich in
heavier hydro-carbons proc-

essed

the

in

Ail

market

trend of general business
activity.
Stock
market
history
provides
many
instances
where
average

embers,

member firms

in

have

opinions.

future

tried to forecast the future of the
market by direct relation to the

honor¬

at

much

as

and financial trends. I have

cere¬

gathered

of

performance

market

stockholders of

Columbia is also planning to go
into the petro-cnemical field in a
substantial way since Appalachian
the

past

partners

the bottom of the well,

gas

trends

Ex¬

voting

to

market

projections

on

personal

possible dependence upon ortho¬

personal

ing the event.

controlling three

realignment plan for subsidiaries
which provides for one retailing

Divi¬

,.was

a

mony

dergrpund and -increase the gas,
groups of natural gas properties ^ow
existing fields; these in-,
and another group engaged in oil
volve-sending. a liquid and sand
production. The company has a mixture under, high pressuure to
company

Francisco

the

occasion

for

New

used

San

from

dox forecasting of the unknown
future I have for many years tried
to
substitute impersonal histori¬
cal and technical probabilities for

Coast

change,

relatively remote

present

.

the

of

Pacific

and this year has budwildcat
wells
to
be

areas

in

sion

can

techniques

.

.

holding

3% times those of

over

.

rev-

drilled

as

FRANCISCO, Calif.—The
anniversary (Sept. 3, 1957)
Sidney L. Schwartz's member¬

producers
are
also
expected to follows suit. Thus, it
is hoped that fresh supplies of gas

com-

include

be

myself

that "In order to reduce

50th

independent

1,760

cities

will

Exchange

SAN

250
of

vania; Baltimore, Md.; Richmond,
Va.; and Binghamton, N. Y. Like
most
of
the
pipeline
systems",; pew

well

About

yeart over the next five years and

Cincinnati, Toledo, Dayton and
Columbus in Ohio; Harrisburg and
part of Pittsburgh in Pennsyl-

enues

regions.

in

a

wells

new

Doing everything possible

divorce

responsibility, I started out rather
apologetically with the statement

Honors S. L. Schwartz

service, the
population
of

munities., Major

Columbia

Pac. Coast

will come from the southwest, but
the company is also planning to do
someV =_deep well drilling in the
Appalachian

Future of the Stock Market
Test."
to

System, Inc.

21

South

to

this

point

the

dating bank loans.
Such a slow
out of the conventional

working

economic

would give the
time to reach
levels than gener¬

cycle

stock market ample
lower average

ally expected at the present time.

The Commercial and Financial

Chronicle

.

.

Thursday, September 5, 1957

.

(1022)

22

past, to show that
Continued from -first page

somewhere

See"It

do not want to be "modern Repub¬
their chance to register their feelings on
the subject, and they did. Some of them have never been
in sympathy with many of the things the President asked
Congress to do and they could see no reason, political or
other, for supporting them.
But where does all this leave us? Why just where we
were this time last year, and, for that matter, basically

just where we were when President Eisenhower went to
the national capital to clean up the "mess in Washington."
Some messes have indeed been cleaned up but the really

big task, getting this country back to
has been either neglected or ignored.

its own traditions,
Congress this year

rightly had a good deal to say about the size of
presented by the President, and actually cut
billion here and there—how many of these

the budget
off a few

reductions

replaced at some later date remains to be seen—
but it did exactly nothing to inaugurate a program which
would make possible real reductions in outlays both now
will be

and in the future.

Only One Way

recognized fact, and it must be

well known in

reductions in expenditures and hence
in taxes await and must await curtailment of the func¬
tions that the Federal Government has taken upon itself
under the New Deal and the Fair Deal and which the
Eisenhower Administration has again, and again and again
sworn fealty to. The late Senator Taft complained bitterly
early in the first Eisenhower Administration about the
way the President was adopting most of the New Deal
ideas and programs. His heirs in the Senate have opposed
some of the President's spending plans since that day, but
if they are prepared to do what is necessary to put our
fiscal house in order, there have been few signs of it.
The Democratic members of Congress and of the
Congress, that real

party rather generally have done all that they could think
of to make political capital of higher interest rates and to
blame the Republican Administration for "tight money"
which they seem to

think is

sin in its own right. They

a

have, however, shown no disposition to do anything to
correct the situation which has given rise to this condition

doing,.instead of
the Federal Reserve authorities, was to bring to

of affairs. What

railing at
an

end

the

stimulate

Federal programs which

the same time, reduce
scope of Federal activity and hence the rate at which
government itself was taking money out of the pockets

borrowing and assist lending and, at
the
the

of taxpayers.
The

now

rather long

sustained rise in consumers prices

phenomenon which the Democratic party would
like to lay at the door of the Republican Administration.
And certainly, the party in power can not successfully
avoid all responsibility for it: But what proposals have
come out of the Democratic party for correction of this
is another

situation? Reduction in

public expenditures, less encour¬

agement for spenders and borrowers,

and a far less tolerant

labor monopoly are ways and means of dealing
with this situation. It is, of course, unfortunate that the
Eisenhower Administration was not disposed to take steps
of this sort, but the Democratic Congress is estopped from

eye upon

criticism since it has shown no indication of

doing any¬

thing of the sort either, and of course, an "independent"
Congress is as much obligated as a Chief Executive.
•

r

■

j

■

Shunning the Agricultural Program

,

really expensive relics of the New Deal
and Fair Deal is our agricultural program. President
Eisenhower made some relatively minor changes in it
when he came into office. The farm problem is still with
us. Neither the President nor the Democratic Congress has
One of the

this year

made any attempt to get the nation's agriculture
footing. In fact, neither have been disposed to
touch this supposedly dangerous subject. No one in any

on
1

a

solid

governmental position or any leader in any political party
has had the temerity to come straight to the point and
say that the only possible way out of the present situation
which was created largely by governmental interference
and political chicanery is to give natural forces an oppor¬
tunity to work out the normal solution.

Those members of the Republican party who regard
| "modern republicanism" as but another name for the New
Deal have an opportunity before them. Their party is in
a sad way, a house divided against itself. Let them begin
; now as they have never really been inclined to do in the
f




that

the

budget

be

can

off-set

against these savings in a fair and
equitable way. Already, with our

for that purpose. Then ineed we should,

present $500 million annual sav¬
ings for a direct outlay of about
$3 million annually, isotopes are

giving

from page 11

fair return

a

in

investment

the

on the total
whole Atomic

Energy project;

and our nuclear
stockpile and the atomic
power-; developments,
costly ;; as
they are, are beginning to be
borne by the largely unsung but
very benevolent isotopes.

weapons

of Isotopes

Uses and Savings

And Our Atomic Future

In

the field

of

the Atoms-for-

Peace program, isotopes will play
sugars tries, the previous requirement of
Commission approval prior to ex¬ a very great role, for they can be
labeled in specific positions have
already been prepared at the Na¬ port of radioisotopes with atomic put to work immediately without
extensive training and heavy in¬
tional Bureau of Standards, and numbers 3 to 83 (helium to bis¬
of
course
the Argonne Isotope muth), inclusive, has been re¬ vestment, and can serve for years
to reconvince people the world
Farm has them randomly labeled moved.
over of the atom's great promise
in great quantities. It would seem
Licensing Procedure
for Peaceful Uses when they be¬
not unlikely that in the future
To facilitate the licensing pro¬
come
impatient waiting for the
isotope farming may be done to
cedure for applicants, the appli¬
other great Peaceful Use—atomic
supply
such routine diagnostic
cation form for isotope licenses
power—to arrive.
applications, probably through the
has been extensively revised to
regular pharmaceutical houses.
reflect more fully the information
With McDonald & Co.
'
The
plant products from the required
in , current
licensing
(Special to The Financial Chronicle) ■
Isotope Farm have been used in /practice. Supplementing this, the
many ways but particularly be¬ Commission has expanded its pro¬
CLEVELAND, Ohio—Henry J.

radioactive

of

quantities

-

possible to gram of pre-licensing visits to McGinness, Jr., is now with Mc¬
natural prod¬ applicants'
facilities.
This not Donald & Co., Union Commerce
ucts from these plants which oc¬ only expedites the licensing proc¬ Building,
members of the New
cur
in concentrations which are
and
Midwest' Stock
Ex¬
ess, but also provides the applicant York
beyond the limit of detection with an
v
opportunity
to
obtain
on- changes.
the use of ordinary chemical assay
the-spot advice concerning radia¬
methods. Among the more impor¬ tion
Merrill Lynch Adds
protection matters. To pro¬
tant
of the
labeled compounds vide for the rapidly growing in¬
(Special to The Financial Chronicle)
isolated
have
been
digitoxin, dustrial demand for radioisotopes,
CLEVELAND, O.—Paul Jones,
morphine, nicotine, amino acids, particular attention is being given
Jr., is with Merrill Lynch, Pierce,
proteins and vitamins, as well, of to probable future requirements
Fenner
&
Beane,
216 Superior
course, as the materials in greater and means of meeting them.
For
Avenue, Northeast.
abundance. In the case of many
example,
the
Commission
has
of these compounds, this is the
made
available spent fuel ele¬
Joins Paine, Webber
only way in which they can be ments from the Materials Testing
(Special to The Financial Chronicle)
obtained at the present time in Reactor at Idaho
Falls, Idaho, for
radioactive form for use in tracer use as sources of gamma radia¬
CLEVELAND, Ohio — Rod B.
research
or
diagnostic applica¬ tion.
Similarly,
provision has Alexander is now with Paine,
tions, their synthesis being beyond been made for production of Co¬ Webber, Jackson & Curtis, Union,
the skill of the organic chemist.
balt-60 at Savannah River at the Commerce Building.
been

has

cause

it

detect

and

isolate

-<

More

they should have been,

various

2nission

something to grow enthusiastic about.

Continued

sense

that the Atomic Energy Com-

so

rapidly and as constructively as may be possible. Let
them demonstrate their good faith by the formulation of
definite program

the

ings in industrial processing and
agricultural costs are pretty well
distributed among the taxpayers

as

have

ineir

development costs

benefits of $5 billion annual sav¬

people in few and straight flung words that the fan¬
tastic structure of New Deal programs must be torn down

a

power

free—in

all

the

licans." They had

a

be

and

up

as

back to

President's party

It is

stand

to

courage

ready and desirous of bringing this country
its own traditions. Let them be not afraid to tell

counted

j 'As We

the

summon

atomic

ana

cti incJiiitrui

ciivjuic

lucu

they really are anti-New Deal. Let them

Interested

Currently, nearly 100 private
firms are engaged in radioisotope

processing

redistribution

and

as

in
1951.
Several times this number provide
with

contrasted

of

rate

Firms

17

equipment and services.
Participation of private enterprise
in these activities has character¬

curies

200,000

per

year

through Dec. 31, 1957. This ma¬
terial together with that produced
in other Commission reactors, will
increase the availability of Cobalt-60 for civilian use in 1957 to
a

of 300,000

minimum

accessory

Multicurie Fission
at the Oak

a

Pilot Plant

Products

and

Bode
now

&

William

affiliated

S.

with

—

William

Stiver

are

Ross, Borton

Co., Inc., The 1010 Euclid Bldg.

Roy Kiopper Opens

presently

is

Commission

The

constructing

curies.

Two With Ross, Borton
CLEVELAND, "Ohio

)

CLEVELAND, Ohio—Roy Kiop¬

per is conducting a securities busi¬
to Ridge National Laboratory. This ness from offices in the Citizens
facility will help to meet the de¬ Building.
the rapidly growing industrial de¬
mands during the initial stages of
mand
for
radiation
sources,
industrial development of the util¬
several firms presently are ex¬
Forms Leiner Co.
ization of the long-lived radio¬
panding their radioisotope proc¬
BROOKLYN, N. Y. — Morris
active fission products.
It also
essing facilities very significantly.
will serve as a pilot plant for fu¬ Leiner is engaging in a securities
For the first time since initiation
ture
industrial
fission
product business from offices at 1128 52nd
of
the
radioisotope distribution
plants.
The
plant Street under the firm name of
program in
1946, the economic separation
should be ready for full
scale Leiner Co.
feasibility of
private enter¬
by
late
fall.
This
prise participation in radioisotope production

radioisotope

the

ized

program

since its beginning. In response

production

appears

undertakings

Actual

imminent. facility will have
private

by

industry in this area primarily
are
dependent
upon
sufficient
further development of the radio¬
isotope market to support private

radioisotope production, reactors.
One
company
has announced
intention

its

actor

to

the

for

construct

a

re¬

production

of

steam and for radioactive
cobalt-60 at the rate of one mil¬

process

the

actor
of

year.
This will
privately-owned re¬
large scale production

curies

lion

be

per

first

for

radiosotopes.
To

the

the

extent

public

Commission

use

separation

will

topes

used

be

widely

and

research

medical

in

therapy,

health

safety,

and

regulations

with

pertain¬

simplified to facilitate the
of radioisotopes for industrial

and other purposes.

Quantities of

radioisotopes which may be pos¬
sessed under general authoriza¬
tion
or
license have been in¬
creased.
Provision also has been

the

case

of

associated with A. G.
is a different

Becker & Company

physical research and industry.

individual; prior to joining A. G.
potential large Becker & Company he was with
McDonnell & Co. and A. C. Allyn
scale uses for radioisotopes and
'
j
radiation that as yet have not & Co. Inc.
made an appearance. Those pres¬
New Kidder Branch
1
ently in use are paying a fair re¬
turn on the entire capital invest¬
PLATTSBURG, N. Y. — A. M.
There

are

many

in

ment

atomic

our

and

energy

look

forward

friendly

coun¬

Kidder

&

Co., Inc. has opened a

Street
to the with Donald
H.
Guibord
and
day
when
the
applications of Henry D. Hendee, Jr. as co-man¬
radioisotopes and the rapidly de¬ agers. Both have been associated
veloping
prospects
for nuclear with the firm in the Burlington,

program,

we

will

power

of

part
three

and

branch office at 43 Clinton

complete confidence

with

our

become

an

daily lives.

integral
Within

probably
made for distribution by manu¬ more nearly three, sometime in
1960—isotopes probably will be
facturers of several devices em¬
ploying radioisotopes without spe¬ paying the whole way- for the
cific licensing of their customers. atom, and the American people
In

who became

„

consistent

ing to the possession and use of
radioisotopes have been revised
and

CORRECTION

capacity for

a

of 200,000 curies
In the "Financial Chronicle" of
per year of cesium-137 (27 year Aug. 29 it was reported that Wil¬
half-life). In addition, substantial liam E. Lucas, formerly a partner
qantities of strontium-90 (28 year in Baxter & Company, had be¬
half-life), cerium-144 (275 day come associated with A. G. Becker
half-life), and technetium-99 (2,- & Company, Incorporated, in Chi¬
000,000 year half-life) also will be cago.
This was in error.
Mr.
recovered from the same radio¬ Lucas is still a partner in Baxter
active
wastes.
Those radioiso¬ & Company. William E. Lucas,

the

to

the

five

years

Western

—

World

will

get

Vt. office.

Now Ladet,

Steele, Mohai*

firm name
Co., First National
Building, has been changed

DENVER, Colo.—The
of L. M. Ladet
Bank
to

Ladet, Steele &

Mohar, Inc.

'

_

Volume

Number 5670

186

.

;

.

\

The Commercial and Financial Chronicle

(1023)
Continued

from

3

page

!

•

II

-

ever seen
by the combined treasuries of 40 states of the union. It
is
the world's biggest

The Organizational Revolution
It

"Challenge of Tomorrow"
than

more

double

again

before

1970.

ment has

steadily climbed to new
highs both in dollar amounts and
in percentages of total production,
A thriftier nation today has been

saving from 6 to 8% of disposable
income
1929.

with 5%
in
major results is

compared

One

that

of

the

output

1929.

Union

"

quadrupled.
than

since

membership

Electric

sumed per customer
more

in

hour

man

per

factories has increased 60%

has

power-,con-;
has

four-fold

eased

nici

and

The

implications of these facts

for American

business

executives

need not be labored. The next five

to ten years

will probably witness
growth and change, more

more

ments,

Federal, state and local,
speedily
devise
adequate
plans and programs for maximum
development of water supply and
electric power, for smog control,
and

for

prevention

Solely

conservative old-folks in the

pre-occupation
enjoyment,
m ore

more

self

hedonism

and

Additional

measurements

commercialism,

welfare

creasing

of

shown

are

Table I below, together with

statistical

of

detail.

widening
real

gap

income

,

in

other

j

;

:

in-

v

between levels
in the United

increasing,
abroad

will

time

no

resources or

the

States and the

rest of

inextricably bound

Of

some

75

strategic
and critical materials listed
by the
Defense
Department, the entire
American requirements for more
than 40 of them have to be imOf the 100 chief minerals

in

our

automobiles,

appli-

homes and industries, only
can
be
produced entirely at home, one-third can be
partly produced, and the remaining third must be obtained enances,

one-third

tirely from abroad,
Unless
provide

business

executives

tireless

leadership and
promoting economic
stability, control of inflation, conpatience

for

need

maturity, international sensitivity

bargained,

Pass®d, by
P,?ra+ !?s'

determined,

and

legislation

group action.

The

and

unorffanifJ

The

professors and
T

"h

consumers

are

tus'of individual?
offices

organizati0n

A

and water systems.
In
fact,
General

SL o/

ly

General

instances

hut

Motors

facturers, of the CIO, of the National Grange, or of the United
States

Chamber of

Commander

Legion,

Commerce,

of

the

Governor

of

State

their
be

or

a City, his views com amplified attention in the
press, over the air, in the market
place and in government,

it

of
resources,
internatrade, aid, and friendship,
American strength and prosperity
will during the next decade reach
a ceiling level.
Ceasing to grow,

Next to the Federal

It

;

more

people than any other business or
state or local government in
the United States.
More money

"

■

7

employs

----

.

-

V

:

coffers than
"
"

Item

1929

_

1944

1952

1955

Population, millions1
Birth rate per thousand inhabitants...
Death rate, general per thousand inhabitants
Infant mortality rate per thousand live births2
Auto death rate per 100,090
Life expectancy in years,, males at birth....

123

138

157

18.81

20.2^

24.61

10.61

9.61

Personal

otherwise

Distribution

prove

bottleneck to
and make the

a

1951

of

disposable income5./.....
income

1951

in

31.3

in

1944

1929,

dollars—per

of

cent

10.0

11.4

1,519

1,497

36.9

19.0
8.0

6.1

13.0

Number of trucks

120.0

Number of tractors

27.4

38.6

Soon the

scarcity of

'"have-not"

raw

will

minerals

and

nation

impor¬

so

materials

make

unless

us

we

a

ex¬

change more and more of our sur¬
pluses for the -vital necessities
■

which

we

abroad in

In

will have to import from
ever

larger quantities.

1952, in a notable five-volreport entitled Resources for

*ume

Freedom,

the-

President's

Policy Commission headed
by Mr. William S. Paley, Chair¬
Columbia

the

of

Broadcast¬

ing System, documented in detail
how

American pros¬
be on foreign
materials, despite all the in¬
soon

dentions and discoveries that

cent

of families with incomes

BLS

Their estimate

the

1975

United

coping with

was

that by

would

States

be

general 20% deficit
in raw material supply.1 Thus, for
example, it will need twice as
much
For

port,

a

mechanical

a

see

Crisis
et

health

and

standard7

41

77

72

pounds per capital3.... 129.0
Raw sugar, pounds per capita3
100.9
Coffee, pounds per capita3.
12.2
Visitors to national parks, millions (U. S.

201.0

171.7

National Park Service)
Number of

Consumer prices

use,

in

vivid

90%

energy,

condensation

Fortune, August,
Raw
Materials,"

of

this

1952,
pp.

re¬

"The

114-118

seq.




women

and

ment

D.

(1947-1949 = 100)5..."

occupied bousing unit,

cent

homes

Mortgages

on

1

cent

20.01

26.91
75.2

lighting9......

2,169

3.1

4.3

8.4

9.2

906

2,215

4,170

4,750

74

farms, thousands1...

011

29.3

2,519(1

99

104

112

*

con¬

>

139

,:'Data

the

for

ara

♦♦Data

for

are

school

the liscal

years

ending in

rather

than

*!'Not available.

'

4 8.11

56.22

iSData

113.5

114.5

"

.

for

'IData

54,9

1930,

calendar

1,452

1,650

1,660

146.0

276.6

372.3

1952 and

1944,

1955.

years.

'

e

not yet available.

for 1954.

1

1953.

National

previous

S.

■

Industrial

editions.

3.47

46.5

54.0

t

New

Conference

York,

Board.

The

Economic

Almanac,

.

1956

and

Thomas Y. Crowell Company.

Department

Insurance

Data

S.

5 U.

17.9

58.5

97.9

98.5

51.29

94.4®

88.3
7

Indicators,

97.02

19.87

for

23.3

26.6

28.8

84.7

83.5

878

2,659

2,191

17.76

31.72

37.62

68.90

New York, The

Life

Insurance,

Report.

Economic

Institute of

Joint

Committee

on

the

Economic

December,

U.

S.

.

1950;

September, 1953; and May and July, 1956, Washington, D. C.
7 Compiled from other data.
Handbook
Statistics

Wealth

of

Basic

Bureau

of

the

of

Economic

Statistics, Dec. 15, 1956. Washington,
Washington, D. C., 1956.
Bureau of
Economic Research, Studies on

National

and

Income, Vols. I-XV, New York, 1946-1953.
S. Department of Health, Education and Welfare, Office of Education.
Survey of Education in the United States, 1952-54 and previous edi¬
tions.
Washington, U. S. Government Printing Office.
11 U. S. Department of Agriculture.
12 U.
S. Treasury
Department.
Annual Report of the Secretary of the
Treasury on the State of the Finances, 1955. Washington, U. S. Government
10 U.

Biennial

Printing

Office,

13 U.

1956.
of the Budget.

S. Bureau

.

,nr.a

j

The Budget of the United States, 1958 and
Washington, U. S. Government Printing Office.
Prepared by Maureen B. McBreen, Public Finance Analyst, Legislative
Reference Service, Library uf Congress, Feb. 1, 1957.

earlier

51.39

New York,

.

,

3.12

1956.

1954.

Congress.

9 Publications

1944

Capital outlay expenditures of public ele- '
meutary ami secondary schools per pupil
enrolled, in 1951 dollars10
22.15

are

Booh,

1956 and numerous earlier issues.
Washington,
Printing Office.
U. S. Department of Commerce.
Survey of Current Business, July,

Economic

80.4

previous editions.

*v

Fact

Government
6

96.(1®

1957 and

Company.

4 Life

1956.

67.3

Please Almanac,

Macmillan

55.0

ST he

enrolled, in

24.5

1,151

42.7

4-family nonfanu homes,

pupil

' 6.5

502

124

3 Information

elementary and
secondary schools, millions10
25.7
Per cent youngsters, 5-17 years old in school10
81.3
Resident college enrollment in thousands10 1,101
Public elementary and secondary school ex¬
.

11.8

.

36.7

enrollment, public

per

dol¬

1939

35.9

Fj. Education*

penditures

127.8§

125

non-

Percent homes with radios

Actual

in

customer1
in use, millions1.

Com parable data

7.5

43.4

homes with electric

t

40.7

23.3

15,4,

18.9

Per

»

46.08

59

95.0

16.4

>

.

.

of Commerce, Bureau of the Census. Statistical Ab¬
stract of the
United States,
1956 and previous editions.
Washington, U. S.
Government Printing Office.

owned1..
to

76.52

(1947-1949=100)5

t

91.9

3.66

Per

67.97

.

Corporate profits before taxes, billions6....
9.6
Federal Govt, debt per capita, dollars6**...
139
Life insurance in force, billions of dollars4 102.1

190.9

Housing—
per

construction

new

marketings and borne
sumption (1947-1949=100) 11U
Total industrial production

2 U.

Population

20-4-5 in labor force3......

I. Production—

1,523

19.6

73.3

millions.....

1.62

,

Kilowatt bonis per

106.6

3.2

telephones in

industry3
manufacturing5
— all
manufacturing

lars (billions)

adequate
decency

^

2.04

25.03

Volume of farm

Meat consumption,

dollars10
?

minimum

1.28

./•''*« 4

Capital Equipment—
outlays for producer's durable equip¬

Private

7.0.

even

the most optimistic considered pos¬
sible.

t

<■

dependent

perity would
raw

to

Mate¬

rials'

man

Per

cent

II.

Personal consumption expenditures per

brief mention.

1,604

31.8

105.7

of them

1,529

30.9

5.1

warrant

50

1,250

0.14

!;.{

-

44

739

28.2

79.0

one

•

39

21.6

Private debt as per cent of national income6 184.0
Consumer credit, in billions of dollars
6.4

to

capita of 1914

4.0

387.9

as

per

16.8

306.8

tant

24

on page

15.0

Per

1,390

Committee

Continued

.7'

14.7

144.8

1,197

Temporary

4.2

161.2

1,005

the

and

Economic

2.7

4.0

problems,

National

on

124.1

6.0

dollars8

Deal"

?

] 4.0

capita in 1952

Wilson's
"New FreeFrankHn
0.
Roosevelt'3

.

"New

1.2

15.0

other

dom>,,

the

3.2

8.5

numerous

Woodrow

-

78.1

9.6

are

dore^.Roosevelt's "Square Deal,"

.

unemployed5
Union members, millions7

9.0

there

Bank -of the United States, Theo-

cent

6.0

But

than
history.

40.7

5,000-7,500

kept under control.

in American

40.7

4,000-5,000

4

of

46.7

boom

C. Von sink plion—

all

people

45.2

the

.7...

the

47.2

18.0

.

We

44.2

18.0

private debt, billions6.

they

And who

created

Output per manliour
(1939=100)8
Per

r

States

Hours worked per week in

15.0

/....

before

V.'./

14.9

7,500

United

'

dollars5

19.0

Over

The government.

the

possess more absolute power

*

27.1

government,
business* and con¬
sumer spending. Inflation must be

in

31

14.0

Net

have?

raised

based

dollars

in

care

24.0

First, needless to say, is
necessity, especially during
times, of maintaining flex¬
ible fiscal, expenditure, labor, and
management policies so that eco¬
nomic growth and stability will
not be impaired
by excesses in.

these
exec-

powers

of

r,™

j

not

power

1,000-2,000

Golden Era of American

power?

corporate

created

whatever

Average weekly earnings in manufacturing?!'

11.9

such

their

who

is

say,

corporate

corporations and gave their
utives

power groups

Hours worked in all

and
17.0

from
And

value0

9.92

total9

1,000

obtain

Obviously

to

do

Andrew Jackson's battles with the

dramatizes

2,000-3,000
3,000-4,000

expansion

a

executives

•

i

business.

1950's

decision

G. Labor—

16.6

25.2

needless
Where

one.

Hospital beds, thousands3
Federal expenditures, promotion of public
lieallliyqrer- -capita- in*1951 dollars13

1,623

5.0

issue,

old

charters.

society, of Etats dans L'Etat,

21.0

further

taxes,

national

issue here

that of

course,

Medical

26.5

4 2

savings, billions6.

Percent saved of

under

major

•4.

a

;

22.92

these problems may

single

a

of

66.84

of

an

governments?

F. Medical Care—

9.32

24.91

Number of Knotty Problems

1955

new

Motors

165

68.73

Several

In

the consent of those governed. For

21.62

11.91

673

to be solved.

the

This

persons

alter

Population—

18.81

For

,

no

exercise

25.51

a ^

double

Yet

The dominant

is, of

;

(Indicia of Welfare, 1929, 1944, 1952 and 1955)

nujnber of knotty
513
problems coming up, both .domesSuicide-rate per 100*,000.v.*.it;.1.,......
15.6
tic and foreign, that will require if' ; ;
j..
.'•H1*'"-.
joint'effort coupled with under11. Income tuid Debt—
Per capita disposable income in 1952 dollars5 1,045
standing and patience- -if they are
are

than

General

39.8

there,

50

profit

ever

Living Standards

67.6

and self-restraint be greater.

31%

or

the

public primarily affected
by such businsss decisions.

Exercises Absolute Power

m

The Great Explosion in American

A.

Motors

and the Free World,

is

TABLE I

i

oblige)— either to the workers
to

any

the margin of superiority may in
time become uncomfortably small, flows through its
'•

government,

_

all

the United States. Then why doe3
Motors,-the incomes and so large
a
percentage
of
the
lives of 18,000 dealers,
10,000 sup- American public, and especially
pliers, 500,000 employees, and mil- of laborers, farmers, and stocklions of customers are vitally af- holders feel helpless to the
point
fected.
It may perceptibly alter, of apathy?
as a matter of
fact, the prosperity
Why, indeed, since today the
and strength of the United States executives of giant corporations

the largest such unit of power is
General Motors.

earned

By

his

World Economic Power Units

servation

such

General

The Organization Man.

as

and

themselves

tional revolution.

business and governmental. There
has developed what Mr. William
book

that

life

high order of
merely
emphasizes

trusteeship,

enterprise
even thought of
entering the automobile industry.
Freedom of entry is a dead letter, inoperative in
the face of so great an
organiza-

by giant rule-making bodies, both

in

existence

would

General

average.

increasing extent, the
farmer,
consumer,
laborer, and citizen finds himself
guided, conditioned and goaded

characterized

cise their power of economic
death with a

les

their

38.94% of the stock.

more

modern

has

unquestionably honorable
who strive earnestly to exer-

and

legally powerless to make.

own

an

Whyte

men

near-

world

and do make agree-

can

powers)

In

Mayor of
mand

To

and

these private rule-mak-

are

with

obtained

or

American
a

Motors,

essentially

are

or

absolute power exists,
foreign governments that they have it, that
they are
and interests (witness the Iranian not
legally bound to give any acOil Consortium) which the States
counting (except insofar as good
(from which these corporations public relations and noblesse

ments

of

the National Association of Manu-

as

big,

as

economic power units that in some

sneaking fol¬

himself is given little heed

ers

dozens of other corporations

We

man

sentence of substantial

air-conditioning, lighting, heating fact that

no-

aie po

dependsuDon

^

total loss of income and livelihood
upon
entire communities.
The

is able, as part of a routine day's
work, by closing a plant to pro-

gas

innrpa<sin<* evtent the ctn

,

nounce

engines, bulldozers, washing
machines,
refrigerators,
ranges,

.e trade associations,
the

D0Wer

mittee of corporate executives in
an office hundreds of miles
away

dition to being the world's
largest
producer of passenger cars,
trucks,
auto
parts, busses and locomotives, it is a leading producer of

cor-

ganizSionroT^'anufa^tur^s

so much
rule-making authority and
decision-making in a
single management, that a corn-

the

in

tional

American

living standards.
At

>

.

the

are

together.

policies, especially if these can be
interpreted or distorted as tend¬
ing to increase American levels
of prosperity at the expense of
other nations' natural

of

scarce

/

.

and

envy

of

:

:

United

States and in other countries may

generate
criticism

waste

standpoint of
national defense, the destinies of

used

with

:

from

ported.

population,

of

coal, oil, timber, and other
resources.

luxury consumption,

more

water.

must

ment

more installbuying, less concern about
small savings, more country-club
living,
greater
suburbanization,
more
equipment per household
and per farmer, longer paid vacations for workers, more domestic
and foreign airplane travel, more
college
and
graduate
students,

farm

more

comprehensive

a

produced, prices

mostly by mergers it has centralized

advertiser,
largest bank customer, and the
largest shipper of freight. In ad-

truism today that goods

a

wages

resources-conservation program is
obvious.
Business
and
govern-

the world

;

more

The urgency of

tractoisthe

larms iive-ioia.

A

40%

products, 170%

Investment in plant and equip-

on

minerals,

more

are

is

<23

volumes.

Chronicle

The Commercial and Financial

.

.

Thursday, September 5, 1957

their income to meet the greatly
increased costs of educating their
children? Today for' each dollar
currently spent on schools of all
based on well-rounded kinds in the United States $1.60 is
of values controlling spent for new automobiles and an
outgo, can we be sure additional 45 cents for roads. Edu-

an .order
taker, anlonger an efficient independent
other machine telling governor of the competitive
him when to re-order and how process.
much.
Point of sale literature,
In
the/absence of wise sales

become

has

23

Continued from page

I. B. M.

or

,

"Challenge oi Tomonow"
their day made
heroic attempts to stem the tide
of
mergers
apd corporate ele¬
phantiasis. Each clearly saw that
the greater the power, the more
dangerous the abuse. In the words
famous dictum
corrupts, and absolute
corrupts absolutely."
Acton's

Lord

"all power
power

displays, promotional "best-

resistance

trading stamps, national
and local advertising media, prespower, communications, transpor¬
sure
the
consumer
in different
tation, and oil industries? Should
directions. Unable to secure, and
we not lower or remove barriers
to trade, both those due to gov¬ frequently indeed to comprehend,
basic
technical
knowledge
ernment and those due to busL the
ness
restrictive practices? Why necessary to rational buying, the
did the United States join Russia consumer responds to
irrational
in 1955 in axing the Ad Hoc Com¬
stimuli and impulses.
He is no
mittee
on
Restrictive
Business

(TNEC) each in

of

.

(1024)

24

standards

shelf

buys,"

return.

no

reached the point of
The world of free,

...

'

,

.

tional output?

/

,

'*■'

4(;oice

—.

12—31—55
12—31—55
12—31—56
12-31-55

—

.

-

12-31-56

3-31-56'

.

These

States.2

but

are

subject, big business and challenges to thinking and action
concentration of economic power, awaiting the thoughtful business
executives and citizens of tomor¬
has, of course, generated many
row.
heated controversies with respect
IH
both to the facts and to their im¬
plications. As one wag has said, Consumer Sovereignty Dwindling

Co

—

of

California

State

of

Texas

Petroleum
of

loser's prize, a mere Cadillac,"
This is neither the time nor

ous

which

businesses

Life

the

him

gave

freedom

portunity," and economic justice?
Some recommend a do-nothing

But

series

a

have

revolutions

control

his

weakened

quickening.
policy. "Every man for himself"
Improved types of plastics, petro¬
say the elephants as they stamp
chemicals, antibiotics, and radio¬
among
the chickens.
To such
isotopes/ atomic
energy,
elec¬
cynical counsel millions of small
tronics, nucleonics, automation—a
enterprisers properly raise vehe¬
truly dazzling array of new prod¬
ment
objection and each year
ucts, new processes, and new tech¬
sponsor dozens of bills, in national
niques have spouted forth from
and state legislatures designed to
university,. governmental
and
provide financial, tax, managerial business laboratories
during the
or other types
of protection and
last 15 years. The end is nowhere
assistance.

no

political power to be
with economic power in
of

kind

totalitar¬

monolithic

is still too

impact

All

measure.

government tak¬
ing over business or corporate
business taking over government,
spell
disaster.
Where lies the
golden mean?
minimal safeguard

and

first

A

would

be

to

seem

legislative

a

that at least tries to pre¬
competition in all markets
it
is
now
working/ effi¬

program
serve

where

the

is

That

ciently.
the

of

laws

1950

of

in

tration

the

are

the

of

antitrust
com¬

activ¬

current

adminis¬

Eisenhower

enforcing the antitrust

together with

laws

the

Especially

generally.

mendable
ities

and

of

anti-merger

Celler-Kefauver

act

purpose

Supreme

the

Court decision in the du Pont case.

Suggests
But

the

ingenuity

a

Program

salesmanship

are

and strong.
Why for ex¬
ample, permit government promo¬
tion of monopoly to go on un¬
many

checked

in

the

aircraft,

electric

in

a

detailed

terms

employment

of

see

list

showing

revenues,

Table

II

12-31-56
6-30-56
12-31-55
6-30-563.

■___

1

Wisconsin—

of

x._a

of New York

Edison Co.

State

of

Maryland

State

of

Massachusetts——

Angeles, California——
of Virginia
/

State

of
of

—

are

and

en¬

are

markets.

The

output

of

than half

more

available

is

each

marketed

by

big corpora¬
tions. Ever more rapidly, decision¬
making is shifting from consum¬
three

only

ers

in

four

or

the

market

to

the

execu¬

State

of

Tennessee—I-

of

Georgia

Life

istrative
tries

bodies.

In

or

admin¬

many

indus¬

de

facto both domestic poli¬
cies, affecting, for example, wages,
prices, output, investment — and
foreign policies (how much and
what shall be imported, invested,
are

made by corporate boards

New

More

and

consumers

to

They have to buy on faith
brand

or

label.

and

farmers

unable

judge.
—

by

The retailer like¬

wise often has but little technical

items

the

he

of

sells.

consumer's

the

hundreds

Instead

buying

of

agent,

•Jfeak/*

of

being

he

238
221
220

.

State

of

—/

State
State

of

Utah________

St. Louis,

of

State

of North

.

Maine.

Trust

New

Co.,

Rhode

of

Trust

Co.__

Guaranty Trust Co. of New York_____

Cincinnati,

Ohio

■

./

./

;

of Los Angeles
Chemical Corn Exchange Eank__

Security First National Bank
Marine

Midland

Corp

Northwest Bancorporation

^

Pittsburgh
American

First

*
-

Trust,. San Francisco—

Bank

Continental

Stock

.=

Corp._>_____.i__-_„—-__/i /

Illinois

National

Bk.

&

Tr.

Co.

:r

12-31-56
12—31—55
,.1956

62

60*.
58

.
.

108
109
110
111
112113
114

-

6352

■

'

117

1128 ?
3188 /

:

1579
1189

12/31-55

;

7509

-*

4578
3436

.

*

-/

88

109

12-31-56

111

12-31-55

112

120
44

'

94

86.

..

1955
12-31-55

12-31-55
1956
12/11-55
12-31-55
12-31-55
12-31-56
1956
12-31-56

' 1594"

12-31-56
,.

109

1956
48
1956 114 7
'1955 * 76
1956 119* <
1956
59
1956 106
" 1955
83
1955 112

12-31-55
1954

3191
1459
2141
3156
1967
]"S8
1116'
2739

1956

.

1542
"

>

12-31-55 :? 21 •,
118 ;
1955" "49
d956 125

^

1974
1478
3210

95
97

'^12-31-56/*106

50
67
115

,?/ .1956

./'

2785

99
90

89
104
1 03
102
ins
94

2956
1238
2001
1165

2658
1442
1876
^1274

98'

10-56
12-31-55
12-31-55
12-31-55
12-31-^5
10-56
-

7001

.

19 *

" 80

12-31-55 .18
' ' ' ,/ 1956 ' 32;/

1040
1306 r*

84

10-56
10-56

' 12-31-55

1174 >
*.2936 J

36

12-31-55
12-51-55

•

/-

58

10-56
10-56

.

: 4901

-

80

12-31-55

6016
8854
7429
6503
3^2
9461
5205
5276
5305
4891
"7587.
3550

.

"

*

...

12-31-55
1955

.

10-55

.

116

r

10-56

-

"12721
? 9689

115

10-56

10-56

15252

105

.

'i

.1955
12-31-55
10-1-55
2263 / i. =
1956
1221
1955

,..

SO *

,.12-31-55

" 7196,
1628
2869

47 ?..

•

.

1691

12-31-55 / 83
10-56 100

81

89
58
65 /
s 71, j
104;
35 52=.,,.
,■ 66.:

12-31-55
1618 //' -1956

72

13913-,.;
5826

106
107

12-31-55
12-31-55
12-31-55
12-31-55
12-31-55
12-31-56
12-31-55
12-31-56

10-56

,

61,.
82
98
1955 . 27
9-30-56 107
3-1-55 ; 33

2475
1883

-12-31-55 . .115

**

"7; 1956
1955
1955
12-31-55

- 'V
/

69
• 6341
85 . ■ 1392
66"
4849

10-56

12-31-55
10-56

104

12-31-55
12-31-55

12-31-56
12-31-55

.

117
121
62

10-56,

=

>
1955
12-31-55

45802342 '
2333 /

...

39
31.
26 -

6-30-56
1956

1458

14132
10-56
82
8456
''10-56
92
8241 7 10-56
93
v* 9881/m~<- 10-56 -' 87
15866
10-56
75

102
103

12-31-56
6-30-56

79
72
69
69
65
* 64
64

*

10764 '

98

6-30-58
6-30-55

-

12-31-53
12-31-55
=10-56

.

r

23874' ' '

99. '
100
101

.

,

28728

?.

95 /
96
97./ '/

G-30-56

6-30-56
12-31-55
4-56

-

1332;12-31-55 127
/ 833
.42-31-55 -*128

.

* 94

83
82
79

of South Dakota..

17165
•

.91 »./>,•
92
~

-

6-30-56

93

York__

Island

State

90 '

-6-30-55
6-30-56
6-30-55

56

________

"
-

l 93

96

_______

—

Dakota__-__-

1719
2699
2371
2139

>
10-56
59
'12-31-55 " 123
10-56 - 74
..
v
10-56
63
•
10-56
73
4274
12-31-55 1 08

88/

9-30-55
12-31-55

122
116

,

Missouri

State

Bankers

________

Ohio

Cleveland,

>

142.
134
125

.

Montana—

of

State

,12-31-55

146
.

79
77

10-56
52
10-56- 64
12-31-55 124

21165

'89^// .11.20C

148

/•■

Aiizona___________—.

of

12-31-55
12—31—55

?2.700

146

_________

California

-

17551

Nebraska

of

22
24
13

23457
2180
16249.
22523
17057

85
86

12-31-55.
12-31-55
6-30=~56

168
154

/,

'

York—

New

Francisco,

'

176

—_—______

§ First National City Bank
Dallas,
Texas
Baltimore, Maryland

State

187
182

Bank____—Z_______/L__17.

Detroit, Michigan.—/

.1955
1955
12-31-56

: 21693 -;'r:

12-31-55 "'-87

.197...

*,:•

6744
6504
9992

T12278.12-31-55

83 > /
84 •

6-30-55
6-30-55
12-31-54
6-30-56

198

West Virginia_________

Chase Manhattan

/

199

,/

Pennsylvania Mutual Life Insurance Co.____
Connecticut Mutual Life Insurance Co.:
:/

43
49
65

3471
5831
6361

10-56
10-56

' 2361

6-30-56 ='.80 .
12-31-55
81
6-30-55 7 82 —

205
203
Insurance Co.

Life

44
41
45

12-31-55

22588

79

12-31-55

243

Co

Insurance Co.__________

Washington,' D. C
State of
Mississippi
National

103
9
72
25
16
64
111
40

10-56
10-56
10-56

12-31-56
/ 1956
12-31-55
1956
1- 1-56
.12-31-56
12-31-56
12-31-55
' 1956

_

267.5.

_

6-30-55
76
9-3Q-55 ' .77
./
6-30-5673; /'

258
258
253..

Colorado

of

Manufacturers

more

are

75/

Kentucky..

of

1459
15061
2102
6500
8324
2417
1284
3415

10-56' ■'50
22339 / * / 10-56-/ 61
23117 / ,,=/
10-56., 60

73
74- "

:

31
51
53
67
42
71
56
126

27371

12-31-55

14
70
51 ;
74
11
97
81 .
56

1955
10-56
12-31-55
10-56
10-56
12-31-55
12-31-56
12-31-54

/ 1938

69

70
6-30-55 v. 71 •
6-30-56.
72

12-31-55
12-31-55

and Electric Co

Mutual Benefit Life

State

12-31-55

122
60
28
36
34
30
3

10-56

32440
55093

278
267
,

Mutual Life Insurance

England

State

26869
22113

40

9-30-56
12-31-56
12-31-55
6-30-56
12-31-55
6-30-55
1955

1955
12-31-55
12-31-55
1956
1955
1956
1955
1955

15582
15704

67 ,/;
68

<

1112
2638
6050
4554
45 3
5924
27b02
2851
2047
L3482
1533
1919
2782

1&-56

.30988
32949
27741
22000

,259

Co, of New York__

State

of directors.

•:../•

Connecticut

Gas

Of Kansas

state

65
66

6-30-56
/ 9-30-55
12-31-55

-

302
297

•

:
.___

Insurance

of

State
American

San

ernmental commissions

-

Massachusetts

Boston,

Buffalo,

thereby gov¬

r-

<

Massachusetts Mutual Life Insurance Co.__J/

modified

and

Co.____

Insurance

Pa.

State

tive boards of corporations though
here

—

....

Life

General

Philadelphia,

Lincoln

of the manufactured products now

_/____

Alabama

of

State

Connecticut

■-

-

Co

Oklahoma

of

State

12-31-56
12—31—55

385

>

NTSA—

Insurance

Travelers

.

370
369

;

Missouri—

America

of

59
60
61 /
62
63
64

347
341
325

Indiana

State

Bank

6-30-56
6-30-56
6-30-56
6-30-55
6-30-55
12-31-56 '

453
444
443

.

Jersey—

New

465
462

._

State

of

55
56
57
58

325

Railroad

Ohio

State

54

12-31-56
12-31-56
12-31-55

25
18
91
55
76
48
28

29
38. ;

1954
1956

9333
2139

12-31-55
12-31-55
10-56
10-56
12-31-56

49744
25800
26073
21635
34532
17387
.46177 '
1641

52
53

9-30-56 108

5943
3600

19
101
46
24
23
46
37

10-56

79143
5345
21420
56481
57146
28742
39392

51

1339

17
51

-

12-31-55
1956
12-31-55
10-56
12-31-55
10-56
10-56

35621
, :

360
349

Co
Northwestern Mutual Life Insurance Co
Los

37
38
39
40
41
42

.6/30-55*

470

and Electric Co..

and

Baltimore

Mutual

assets,

below.




relative
and

514
502
494
489
480

Railway—

——

Pacific Railroad Co.

Pacific Gas

refcent

businesses

Scientists

knowledge
2 For

size

Louisiana

State

at a premium. Single
industries
and
single
product firms are being crowded
out as organized units of demand
and supply.
Large multi-product
conglomerate corporations by ver¬
tical merger and lateral integra¬
tion vitally affect and sometimes
dominate several, if not scores, of

gineers

etc.)

challenges to business
and

of

Consolidated

product

extremes,

43
44
45
46
47
48
49
50

Minnesota

Union

greatly increased budg¬
research, to replacement, to
improvement and accelerated ob¬

Italy, the new order in
Nazi Germany, or the Zaibatsu in
Japan and which now still men¬
aces
the free world from behind
the
Iron
and Bamboo curtains.
Both

of

State

ets to

solescence.

in fascist

12-31-56
12-31-55
6-30-56
6-30-55
12-31-56
6-30-56
6-30-56

/

Michigan

State

devoting

brought catastrophe
in the form of the corporate state
that

ianism

12-31-55

678
639
636
606
590
589
535

1

Oregon

of

Commonwealth Edison

to

687

;___

sight.
The

wants

united
the

surely

hand,

other

the

On
one

in

Golden Mean?

Lies the

Where

Their pace is

market.

55000
81552
8496
25520
15722
27845
52654;,.

'

Co

Atchison, Topeka, and Santa Fe

the

over

36

-

Co.—

Insurance

of

State

12-31-55
12-31-56
12-31-55
6-30-56
12-31-55
6-30-56
,6-30-55

Life Insurance Co

Illinois
Pacific

Life

State

845
780
776
771
761
706
705

—

Co._

Co

10-56
10-56

CO

124

12-31-55 - 46

1095 '

56

12-31-55

8-31-56

12-31-55

3037

13

70

12-31-56

85692
27002

Illinois

Chicago,

technological
progressively

of

34
35

Florida

of

Southern
Aetna

33

6-30-55
6-30-56

Iowa

of

of

State

25208

12-31-55

■„

1036

27

10-56-

.

12-31-55

18500

9ll

Insurance

John Hancock Mutual
State

32

868
863

Railroad

Central

York

most value for his money.

problem: How to preserve
of entry, equality of op¬

basic

York

New

State

31

12-31-55

Co

America

of

Co.

New

producer. By his dollar ballots he
could
select for survival those

place to explore the numer¬
conflicting answers to this

the

Aluminum

a

12-31-56

Washington

you

you're
don't,

991
923

Carolina

North

of

State

52756

113213

.

—

-

-

Cities Service Co

State

30

24
25
26
27
28
29:

________

Pennsylvania Railroad

Phillips

23

8-31-56

1164
1120
-1110
1036
1036

Pennsylvania

Oil

State

build a big business,
One hundred years ago the con¬
sinister influence. If you sumer was king. He could touch,
you're
a
failure
who taste, handle, and test nearly all
flunked the $64,000 question and products he bought, frequently in
hence must be content with the the very presence of the artisan-

"If

of

Sinclair

The

1

20
21
22

12-31-55
10-31-56
6-30-56"
5-31-56
12-31-55
6-30-56

2440 / 12—31—55 '62 ,/
2797 , 9—30—56 - - «;3
.1264: . 12r-31—56 96,.
1207
12-31-55 1161460
12-31-56 • 101
34206
'1956
2
8048
12-31-55 17
1856
12-31-55 84/*
1"n9
10-31-56 127 ,.
21304
1955
4 .
15296
1955
8 "
1267 \ 6-30-56 113
20034
6-30-56
7

42462
■; 12-31—55
36
43846
12—31—55 35
113857..- 12—31—55' .. 12
38845
12-31-55 38
70000
12-31-55 22
105258 ='"/:/ 30-56
14
15621 1, ,12-31-55 - 78
36369 / 12-31-55
84
78125
10-31-55 20
523D2
10-56 26
77338
10- 56
21
24657
12-31-55
57
97104
10-56
15

17
18
19

12-31-54

_T

Ohio

of

State

the

of

sample

a

State

Rank

6_30^6,;

—

—

.

Assetst

—Employees

6-30-56

-

-

Date

/

«

SC8165

—

is

enterprise

ual

and Governmental -

Number // Date
Rank" (millions) " Date-/ Rank
1
2640791?
12-31/56
1 • $64508
6-30-56
1
l /^599243// ^; 1556
3
* : 6569
12-31-56
23
i^'>nno
•
"' c.=
q
7164
12—71—55
20
12-31-o5
3 .
®
12-''1-55
*>
20320
12-3J-56"
6
12-31-56 / 5
• 12700C3-11-56 ^ 11
2793 7, 12-31-56 r54
12-31-55
6
275646-;'/ 12-31-55
4
.3336 ,12-31-55 37
12-31-55
7
214794
„ r ; 1955
6
1728 .12-31-55 88
1-31-50
«
• ; 1-31-56 92
6-30-56 •• 9
241o44-10-56
5
21375
1956
5
12-31-56
10
176356
12-31-55
8
1295 ,12-31-56 110
12-31-35
11
49203
12-31-55 , 30
13936 . . .12-31-55 , 10
12—31—56
12
>150126- . 12—31—56 , 10
. 2090 .,
12—31 56 -}3
12-31-55
13
48706/ 12-31-55 32 ./ 12521
12-31-55 12
12—31—55 ' . 14
• 47228 •••
12-^31—55 33 •
2161 * 12—31,55 • 68
12—31-56- 15
51520 / 12—31—55 29
242o
12-31-56 63
12-31-56
16
89111, 12-31-55 16
1888
12-31-56. 16

(mTlhons)

'

*

„

Federal Government
General Motors Corp.

>r

Continued on page to

II

Revenues'

1 9_
Should
individ¬
Standard Oil Co. (New Jersey)—__
6272
grant
corporations
shrinking. Or¬ Delaware,
r"
4647
charters with wide powers over FSdriMotoreCoh°nC & TClCgraPh C°
ganizations of labor, of manufac¬
U
S
Steel Co?p
4080
turers, and corporate leviathans interstate and foreign commerce, GeneVal ElecUic Co"
3443
are larger
than ever, both abso¬ powers specifically enumerated in K^ rSS^ aS3307
New York CitV
•'
3154
lutely and relative to national in¬ the Constitution as belonging to
Chrysler Corp
IIIZ:/II""
2676
come.
There are dozens of them the Federal Government? If na¬ Metropolitan Life Insurance Co
...
2484
banks
require
national Bethlehem Steel Corp.-.
that employ scores of thousands tional
2327
2172
charters, why not require them Prudential Insurance Co. of America——
of
workers,
have hundreds of
Gulf Oil Corp.
1896 ,
thousands of stockholders, make for other businesses engaged in
Standard Oil Co. (Indiana)
1890
millions of dollars of net profits interstate and foreign commerce? L E dU Pont de Nemours———I
1888
after taxes each month, and pos¬ Such was advocated in presiden¬
Texas Company
1
/_
1767
sess
billions of dollars of assets. tial messages to the Congress by
Socony Mobil Oil Co.
:
1721
Their economic power potential is Presidents Theodore Roosevelt and Westinghouse Electric Co.
* 1525
i——
1484
second only to that of the Federal William Howard Taft, and more Shell Oil Co.
Union Carbide and Carbon
1325
government. Their direct control recently by several Congressional
State of New York:
>
1309
including
the
of jobs, payrolls, and revenues in Committees,
Equitable Life Assurance Society of the U.S.
1286
—/
1278
more than a
dozen instances ex¬ T. N. E. C. headed by the able Standard Oil Co. (California)
1252
Joseph
C.
O'Mahoney. International Harvester
ceeds
that of even the largest Senator

competitive, independent,

For example, are

setting aside enough of

consumers

'

,

BUd^Polittca?Unitl0U '

American" legisla¬
the books?
small states, such as

be kept on

tion

support

Rule-Making Bodies, Business

Giant

"Buy

Should

of consumer ex- cation seems to be about oneemerging today give half as important measured in the
to
national military cold objective coin of the realm
strength,
competitive efficiency, as is the family car. The wealthiand stability and balance of na- est nation in the world urgentiy
that the patterns

penditure

TABLE

Practices, a United Nations agency
designed to cope with internation¬
al
cartels?
Should the WebbEnterprise
Pomerene
Act
be
repealed?
The American people may now
Shrinking Competitive

in fact have

consumer

12-31-55

55
77
99
42

43
102
69
45
"78
"36
121
-95
9*
57

Volume

186

Number 5670

.

.

Commercial and Financial Chronicle
The

.

Revenues'5—

Business Organization

National Bank**
Mellon National Bank and Trust Co
National Bank of Detroit

Rank

Number

Date

Rank

12-31-56

118

2289

12-31-55

122

1908

12-31-55

119

2771

12-31-55

114

1942

12-31-55

80

12-31-55

120

3661

12-31-55

110

2015

12-31-55

50

12-31-55

121

4352

12-31-55

107

1812

12-31-55

85

44

12-31-55

122

2067

12-31-55

119

1733

12-31-55

87

43

12-31-55

123

2690

12-31-55

116

1959

12-31-55

124

2456

12-31-55

120

1447

12-31-55

105

12-31-56

125

2618

10

118

1098

12-31-55

brains

79

12-31-55

37

123

56

51

12-31-53

126

6946

10-56

96

1475

1955

12-31-55

127

1722

12-31-55

125

1026

12-31-55

12-31-55

128

3004

12-31-55

113

2S77

12-31-55

113

tutions

Revenues

grots

for

with

revenues

based

on

net

based

on

all

types

the

of

organizations

based

are

Bank

on

exception of corporations which

are

the

are

and

Federal

Government

which

the

to

name

ft Net after all charges and

receipts after deduction of refunds of receipts
and
after transfer
cf
tax
receipts to the Old Age
and
Survivors Insurance Trust Fund and the
Railroad Retire¬
ment

changed its

Crocker-Anglo National

Bank.

net

sales

and

r

reserves

have

deducted.

been

Sources:

-\

ment

t Assets

of
states
and
municipalities
represent
total
valuation; those for the Federal Government in¬
gold and silver holdings plus the acquisition c-ost of
Government-cwned'real property <exclusive of the cost of

Manual.

In Jefferson's immortal

Public Utility Manual, 1956; Transpor¬
1956. New York, Moody's Investors Service.

Standard Corporation Records. Current News Edition. New
York, Standard and Poor's Corporation, Publishers.

public domain lands).

U.

S.

Bureau

of

the

Census.

Citv

Employment in 1956,
State Distribution of
March 4,

% Excludes military personnel.

Series

G-GE

Public

§ On March 20,
with the

Employment in 1956, Series G-GE 58-No. l,

1957; Compendium of State Government Finances in
Washington, U. S. Government Printing Office, 1956.

merged

York and

fl Does
of

the

1955, the National City Bank of New York
First'National Bank of the City of New
name to the First National Ciiy Bank.

changed its
not

include

City

New

of

U.

<"5

cf the First National Bank
prior to the merger on March

of

San

10,

195G,

Francisco

the

merged

Anglo
with

California National

the

Crocker

First

Feb.

Senate

11,

1957;

Committee

Bank

U.

National

1st Session, Senate Document No. 25,
Government printing Office, 1957.

S.

Stares

1955,

Appropriations.
By the United

en

Congress,
U. S.

Feb.

On

Congress.

2,

Inventory Report on Real Property Owned
States Throughout the World As of June
30,

earnings
York

1955.

30,

S.'

56-No.

Treasury Department, Daily Statement
Treasury, June 29, 1956.

1956.

phrase-■

85th

Washington,

of

consent

when
of the United

the
governed,
that
government becomes

any

destructive of these ends it is the

right

the

of

abolish it

Continued from page 24

people

and

to

alter

to

institute

a

or

new

government," etc.
'

"Challenge of Tomorrow"
and

adequate

hospital facilities
class rooms, but has

75,000

the

plant-capacity for nearly 10,-

000,000

cars.

billion

for

and

at

gags

billion for

It

It blithely votes $51
new

.

its

pays

super-highways

spending

one-half

schools.

new

school

011

the average considerably less than
it

pays
its
auto-workers,
and
wonders where the scores of thou¬
sands
of
trained
teachers
will

from

come

to

stimulate

and

need

here—and

is obvious.

the

chal¬

With all

our

open-minded

lutionary

welcoming of revo¬
changes in technology,

chairmen

as

of

the

—between

bodied young men but the Penta¬

how

the

technical

the ethical

and

Hence

the

entrusted

"must"

"ought."

sudden

of caliber

premium

business

can

demand

matching the

to

them.

for

pow¬

Hence the

Grade A administra¬

on

people, rather than money, mate¬
rials, or markets which is limit¬
ing the expansion and vigor of
corporations.

of

the

budget, has become

economic
mand
It

or

nerve

more

vital

a

center and

And not only

post of economic planning.

exercises

controls

foreign

over

and over vital

raw

materials.

Its

plans guide American policy
not only in ever recurring inter¬
war

national

financial

and

currency

crises, but with respect to loans,
missions, stock-piling negotiations,

in

there is

and

titanium,

such

IJ MT be not adopted, military at¬
titudes shaped by crisis psychol¬

plastics such as
polyurethanes (foam rubber), new
drugs
such
as
chlorpromazine,

business.

In

universities

government,

and jin

trade

in

unions

an enormous shortage of
top notch managerial capac¬

ity.
Longer

The

Private

a

American

Person

the wisdom to devise and wel¬

come

with
the

ness

equal

judicious alert¬

changes

needed

in

our

political and economic institutions
which will harness the chariot of

technology to the goals
rations of

democracy?

and

aspi¬

In the

race

between,

on
the one hand, the
education which the
people need
to work out wise decisions in the
markets and at the

pools—and,

the

other,

on

business leaders, or experts, will
business
executives
contribute

alert,

vigilant, non-opinionated,
understanding leadership? Here,
too, is a challenge that is not
easily met.
IV

The Managerial Revolution and
The

Power Elite

In recent decades a new
gerial group has become

nant,

comprised

of

is

manager

no

mana¬

domi¬

and

ad¬
cor¬

poration lawyers.
Beginning in
the 1870's the states by a
compe¬
tition in laxity widened the
scope

corporate

limitations
on

on

powers,
removed
maximum capital,

pre-emptive rights,
restrictions
and

dend

and

divi¬

impaired

other rights of
stockholders. The
powers thus surrendered, because
of

diffusion

of

ownership, and
splitting off of control, have been
concentrated
into the
hands of
professional management.
(
Modern
technology thus im¬
pelled business toward a corporate




Even

the heir to a familyenterprise may find him¬
public figure, listed in

generation

closed

universally

worlds

created;

we

of

out

the close world of sovereign states
into the open world of the comllltU
J/WA
** v* *vi
v*
m0nwealth

of men;
out of the
closed worlds of economic monop-

oiy^

restriction

and

exploitation

jnto the open world

of economic

neglected

mechanisms.

Wlh
tainin"

Even

if

active'

the

participation

and consent of ihe "overnedEach

tries

to

vital

service

Each

seeks

render

solving'

fear

or

equal

iaJor

mutual managerial
problems. Each
veritable

a

stration

the

of

of conflicts

-

,

„

_

,.

,

be-

.

*

m?' classes, 1 elisions^ and
^
J^ .
?'. '?
P^CtlCal llVing aild JOlllt Spiritual
,

.

in

^deavor which fully recognizee

and

that weI are our brother's keeper."
May
suggest that

con-

model demon¬

American

dislikes,

I""

cost.

investment
stitues

of

im'mn

IVoorlnn,

'inrl

wthout^

than

more

no

nmvt.4.initw

emle

minimum

at

the morasses oI separatism, .of

fervent

maximum

a

«rekt enterprise of this our

"The

day is to make the climb up from

system

where,

we may
of tomorrow.

here, if any¬
have the challenge:

r

of

self-help, free enterprise, and
democracy at work,
jl
.

Asiel

Wire to Coast

American

Asiel & Co., 20 Broad Street,
people
resent
obeying rules or rulemaking bodew York City, members of the
ies unless they have had a hand
New York Stock Exchange
anin making and choosing them. The
StocK b cna ge, an
techniques
of laissez-faire, free nounced
the installation of a
enterprise, democracy and fair direct private wire to Hill, Richcompetition are those of the ath- ards & Co., members of the Pacific
letic field, tnose basing just pow- ^
,
04.
...
££.
The

consumer

.

„

,

„

condemn

by his community, his
nation, even the Free World. His

petitive athletics, are peculiarly
adapted as instrumentalities for
nected enterprises. War aims in¬ making big organizations, whether
spire increasingly direct and in¬ of business or labor, responsive
responsible
to
consumers,
direct censorship over academic and

attitudes

freedom

owned
self

a

Who's

Who,

under

constant

evaluation

and

his

and

vices,

actions, his virtues

are

longer

no

merely

They are praised
or criticized as
representing those
of the people of the United States.
own

As

concern.

Prof.

stated.

"It

Peter

is

Drucker

the

virtue

has

rather

than the competence of our busi¬
ness
leaders to which we must
look
of

for

our

the

strength and growth
free enterprise system.
It

for

search,

military

scholarship

programs, and for other war-con¬

thought

and

freedom

over

of

challenged and dom¬
specialists in violence,
as experts and

inated

personnel when engaged on what

business executives

the

an

age

by

in securing voluntary
and
co-operation '
staff, labor force, suppliers,
Clearly, business must develop
and) customers should keep strong
managers
not
only unshakably
moral
determined to implement and ex¬ the vitality, efficiency,
stamina and techniques of free¬
pand free, competitive enterprise
but striving to achieve unexcelled dom, of competition, of individual
Pentagon labels

as

"defense

Execu¬

tive

development programs, mid¬
management
advancement
schedules, alert public relations,
expanded advertising and public
service programs, business confer¬
ences,

a

continuous flow of edu¬

totalitarian systems

contest

with

abroad

American

ties, men who stimulate people to

record outputs of goods and serv-.

work

ices

not operate in com¬
The interchange of
personnel

between

business

and
government
may
have reached its peak in the War

Production
bodies.

Board

But

it

and

similar

continues

in

information

and to the

to

public—these

members

rudi¬

are

together,

horizons

of

with

men

heart

encompass

and

in

men

Services

Administration

broad

and

head, able
their planning

families they serve.

ilarly top
in

large

generals
number

and

are

in

Sim¬

admirals

retiring

to

Profits,
are

engineering effeciency,

excellent but not enough.

Man does not live by bread

alone.

First and foremost he wants free¬

19th centures

the business classes
trol

governments

in

came

to

Europe

many

says

people die of it,

•.NEEDLESSLYtf That's
I have

an

con¬

and

-

win/

annual medical

checkup however well I

feel. I know the

when I ivant sound

j

/

danger signals. And

equal and fair administration
justice, a home that is his cas¬
tle, a zone or area for creative

tive

abilities

flower.

To

his

where

voluntarism
as

/

that too

erty for himself and his posterity.an

In the 18th and

Society

dom, that is, the blessings of lib¬

of

The Cold War—Business at Bat

^

Cancerf

Secondly he wants the security of

farm, labor, and

full

and

Ranks Profits and Freedom

to

operations the needs and goals

of the millions of
consumer

"•'VA-'

enterprise.

\Tlie American'Cancer

American business needs

force in the Business and Defense

the Department of Defense.

will

business

have to achieve great,

mentary.

to

hiding.

To win the

Freedom to do what?

match its mountainous potentiali¬

cational

I'm

However, in an age of big po¬
litical, military, and business ad¬
ministration, free enterprise is not
enough.
Freedom,
for
whom?

Power Elite."

They dd
partments.
managerial

■

'Cancer can't strike mef\

initiative.

captains of in¬
dustry share this power.
With
political
leaders
and
with
the
military clustered about the Chief
of
Staff, they form what Prof.
Wright
Mills
has
called
"The
.

■V

among

dle

sure, our

$

specialists

co-ordination

contracts.'

which this

survival."

In

speech by military,
governmental and even industrial

managerial competence.

country, if not the en¬
tire Free World today, will look
for its success, if not for its very

workers and stockholders.

and

is the moral values and perform¬
ance of American management to

To be

business

ministrators, big bankers

of

him.

the

catastrophe
in¬
volved in
surrendering individual
liberties to politicians, war
lords,

and

farmer, la¬
groups.
They
ers on the consent of the governed,
Stock Exchange with offices
virtually
all
strikes.
They engineer increased subsidies those of patient consultative co- in Los Angeles and San Francisco,
for plant
dispersal, for air and operation. Modern business man- California.
shipping lines, for atomic energy, agement techniques if guided by the codes and principles of com¬
for industrial and scientific
re¬

bor, and

urbanization, transistors, air con¬ longer a private person running a
ditioning in the South and in the private business or trade union.
tropics, or what have you—have The eyes of the world are upon
we

control

ogy in essence control

No

electronic data processing, super¬
markets, vending machines, sub¬

sorely

a com¬

Today it trade, over commodity movements
to areas behind the Iron
Curtain,
qualified

tive, managerial ability.
is
the supply of such

many

with control of 60%

gon

—atomic and solar
power, fission,
fusion, rocket and missile
bombs,
miraculous new metals such as
new

out of the

have

is

Factor

administrators of such

tagon not only have become a ma¬
jor factor in the lives of all able-

er

—

posts

cutives deploy it creatively? That
is the challenge and the dilemma

of

The

operate

The military chiefs in the Pen¬

men

lenge

and

cannot

exe¬

de¬

Russia.

which

vast power,

velop the hundreds of thousands

scientists, mathematicians, en¬
gineers,
doctors,
etc.,
needed
merely to keep abreast of Soviet

time

our

principles freedom, out of the closed worlds
board,
efficiently without centralization directors, and executives of large upon which this great nation was of raciai and ciass snobbery and
founded.
Our four million small
and
apportionment
of
vast steel, armament, radio and bank¬
oporession into the open world of
businesses in particular directly
amounts
of power
men's
over
dignity
and
friendliness
output, ing concerns.
embody free,_ individual, self-re- where all of us help each other
wages, prices, markets. (And state
Pentagon's As a Major Economic liant enterprise. Each is a local to be free
and Federal elections.)
As custo¬
giantism

dians

teachers

times

«por

this means, how can we work our

v«*v.

.

challenges to
continually to remind
tlieir colleagues and the public of
these basic, well-known but somebusiness

.,

way

One of the major

lacks

With

extraordinary
perspicaology—'"we hold these truths to city} a famous American
psychclbe self-evident, that all men are
Qgist, Professor H. A. Overstreet,
created equal; that they are en-.jn an
outstanding book entitled
dowed by their Creator with ccr- The
Great Enterprise has stated
tain inalienable rights; that among
the basic problem thus: "The centhem are life, liberty and the pur-; tral
challenge to whatever matusuit of happiness; that, to < safepity of mind we can muster is how
guard, these rights, .governments can we work our
way out of a
are
instituted among men cleriv-.
variously unbalanced world into
ing their just powers from the a world-in-dynamic balance,

1957;

tation Manual,

assessed

clude

which

bill of rights, protection against

-

Moody's Industrial Manual,
195G
edition
and
looseleaf
service; Banks and Finance, 1956; Municipal and Govern¬

Account.

successful

for

generally included keep friends for the American
„
system
of
business
enterprise,
military seizure of person or prop- More than that is
required. What
erty, providing freedom to acquire profiteth it a man if he
gain the
and hold property, and safeguardwhole world and lose his own
ing popular sovereignty.
'-soul?
*'•
a

*

brawn

achieve
or
maintain
large
111tk# United creases in wealth or gross national
States, and elsewhere but helped product or in national income 19
to draft and put through constitherefore not enough to win and

126

20tt

Chicago

and

revolutions in France,

100

21

—.

"•*

75

42

supplanted

aristocracies by

128

12-31-55

51
—

they challenged and emies, he • has poured ; out vaster
the".ruling hereditary treasure, even his life,
championing huMoney, monetary gain, profits
man freedoms, including freedom
seem
on
the whole to rank no
of enterprise. It was the business better
than second 01* third in
classes that not only furnished the man's scale of values.
Merely to
elsewhere,

Rank

Date

(millions)

55

Cleveland Trust
Company
First Penn.
Banking and Trust, PhiladelphiaHouston, Texas
;
The Philadelphia National Bank-,

Bank,

Date

53

-

First National Bank of Boston
Irving Trust Co
Hanover Bank

National

-AssctstAmount

(millions)

Crocker-Anglo

First

-Employees-

Amount

-

Political Unit

or

-;<1025).

can

}

r

informationf I get it
from

my

Unit of the

construc¬

thrive

preserve

seven

in

full

his freedom

against foreign and domestic en-

AMERICAN CANCER

SOCIETY^

•

\
'

The Commercial and Financial Chronicle

119m !

S8

Continued

from first

the

of

Section

in

Fundamental

will

Congress as recorded
they are distorting
and violating the meaning of Sec¬

page

VIII
Omission

of

employed, would it not have
shown that the purchasing power
of

dollar

the

asmuch
50.1

declined

had

proximately 57%

since

(prices

(5)

was

for

for

that

(2) If only one index of prices
is to be employed to measure the
depreciation
in
the
purchasing
power of our dollar, would
not
the chances for accuracy be in¬
creased if the more comprehen¬
sive
general-purpose
index
of
so-called
wholesale prices were
employed?
n
A

Sound

Dollar

and

Stable

a

goods and

as

Fundamental

civilian

use

serv¬

of

of

Importance

the
a

If the

German

people had

calculated Gross National Product
in

1920-1923

it

as

is

in

done

so radically and
in value and the people in

were sinking into
poverty?

(6)

Do

country

the

not

to

seem

of

state

our

in

people

this

that

assume

otherwise?

Although the Secretary has fre¬ Balanced and Unbalanced Federal
quently
alleged
that
a
stable
Budgets and a Depreciating
index of prices means a sound
Currency
dollar, is it not a fact that a sound
Would not correctness of analy¬
dollar is one thing while a stable
sis of our Federal fiscal affairs
index of prices is something else?
be advanced if, in
considering the
i(l) Is not a sound dollar a
virtues
of
balanced
or
unbal¬
standard gold dollar and one that
anced budgets, careful considera¬
is redeemable in it?
tion were given to
(a) the level
(2) Is not a stable index of
prices merely a mathematical ab¬
straction of prices in which some

rising and

are

falling?

some are

(3) If the index of prices is ris¬
ing after a business depression has
its

run

does

course,

that

mean

that the dollar is unsound if it is
redeemable

if

and

credit

is

self-

liquidating?
(4) If prices are falling because
of increased production in respect
to

demand, does that

that

mean

a

redeemable dollar is unsound?
,,

*

in

The

Word

Would

be

curacy

word

many
were

interests

vagueness

if

an

ex¬

pansion of credit by the monetization of Federal debt one
thing
while a rising index of
prices is

(2)

May

not

reasons,
unsound?

prices

rise

sound,

some

rise

become

Secretary

to

of

the

at

various

to what proper inferences
may
drawn from the

be

Secretary
budget

to what

waste

figures

compared
with Gross

had

is

also
in

to

been

destruction

of¬

would

for

in

(2)

civilian

Would

the

no

change

goods and

serv¬

uses?

debt

by banks

the

people

of

this

be
poorer
in goods and
services under such
conditions?
(3) Does not the size of Gross
National
Product
tend
to
as

the

rise,
remaining unchanged,
depreciates

currency

in

purchasing power?
(4)

Does

National

our

increase

Product,

necessarily

of

an

mean

nation

are

method

a

by

as

that
in

a

in

Gross

calculated,
the people
better con¬




not

a

government

solely by taxation
borrowing from savers

by

of greatest

cases

emer¬

monetizing
time

of

valid argument

any

government

oeace?

If

debt

what is

so,

vn

eral

Reserve Banks Despite
Prohibition of Section 7 of
The Federal

When

the

the

Is

(oj

of

the

Treasury stated

that "About $0.6
billion of public debt
interest was
received by the Federal Reserve

banks, 90%
the

ings,"
that

of which

Treasury
was

on

he

June

as

is returned

surplus
of

aware

16,

1933,

earn¬

the

fact

Congress

amended Section 7 of the Federal
Reserve Act thus

terminating the

authority of the Treasury to
ticipate
Federal

in

the

Reserve

earnings

authorities

Federal

claim

under

they

Section

Reserve

par¬

the

banks?

the

not

method

governments

deemable

Act

aware

Reserve

have
16

to

of

of

au¬

the

override

planners

Treasury
had

[whoJ don't like

standard just because it
docs put a limit on their powers"?

which

by

take

such

unrestrainable

currency

Is

there

Treasury

been

ever

effective

control

their

cf

government, only when and where

{dj

had

it not

is

redeemable

cur¬

to

the

ballot, if they
their

fact that

a

a

people

redeemable currency,

a

addition

(9)

right of secret
to have control

are

government?

Do

and

at

able

lower

the

cur¬

than

more

re¬

deemable currencies?

(10) Are not practically all the
currencies

badly
of

of

the

depreciated?

Has

the

not

(1)
it

our

own

currency

57%

since 1939, as

de¬

by the index of whole¬

Is

not

of

this

decline

dollar

our

evidence that

easier

in

the

conclusive

that would provide our
with a
dollar
of
stable

manner

purchasing power, have not been
able

to

fulfill

those

(13) Does not the history of the
of
irredeemable
currencies

tion

of

manage them
price stability and

can,

and

produce

a high degree
equilibrium?

not

Under

Secretary
Burgess of the Treasury describe
with substantial
accuracy the state
of affairs in this
country in re¬

spect

to

hostility

standard

and

toward

credit

are

two

is

undesirable.
to

answers

under

even
are

large

money management

the

this:

gold

areas

as was

point

litically managed
too

C.

when

case

start

that

to

■

of

Relating

at

a

of investments

■

more

related

activities

properly

to

the

-

devoted

in¬

be

Would not

increased

the

if

the

best

made of the

session

also

estate

because of the decline in the pur¬

allowed

chasing

heart

(2)
and

of the dollar?

power

Since

debts

stand

as

can

gift

'

*

their teeth

get

sound

pitfalls

that

lurk

-

.

are

the

in

investment

plan¬

they will be treated

many

in¬

taxes.

students

aduh

orientation lecture (No. 1)

assets

to liquidate debts

power

to

the

include

consider the question

the

of

ning,

con¬

obligations, .while

discuss

planning.

Before

..

will

taxation and

inheritance and

It will

im-^ of

savings
1939-1956,

say,

thorough survey

a

grocery

of

come,

possible

the value of

period,

field

information

our

were

pairment of
for

oils,

One

volved?

(1)

to

of
chains and road
building companies.
:

the

were

debt

govern¬

ment
actions,
especially on inflation and road
building.
Three lectures will be

picture of economic developments
if
the
increase
or
those

and

L.reeniieiU

aamuei

accurate

in

,

.

economic basis

;'"

obtain

concerned

at

Special em¬
phasis will be
placed on the

dealing with savings, spend¬
ing, and productive activity, would,
all

P.M.

.derbilt.

In

not

8

the Hotel Van-

Various

Involved

will

Tues¬

on

September 24,

Economic Activities to Debt
*

The

day evening,

•
_

'

lec-

as
r.

co urse

irredeemable

prior

used

was

Greenfield

ture

than

1879

nine

a

Samuel

acting

X

to
on

an

the

their

in

melt way, is it not very important path. Mr. Greenfield, whose broad
that special attention be given to "experience as an investment ad¬
_

debts

and
as

that

they

not

be

viser

ilar

our

activities

Is it not misleading to relate
of savings to aggre¬

disposable income

or

since

savers

with

disposable

into

different

and debtors and those

side

may falloverlapping

'

When
to

as

Short

Supply"

the

what

goods

was

were

raised

relate

the

woes

bought on tips, in¬
information, and the such. ?

all

others

Pearne

it

is

$15.1)0.

Billings VP.

"

Hugh Johnson Co.

SYRACUSE, N. Y.—Pearne W.
Billings has been elected a VicePresident

question

inti¬

who

Of

Question of Goods "in

into

hundreds-of

.

XI
The

him

with

The fee for clients is $10.00. For
:

income
or

those

.

aggregates

gates of debt

brought

individuals, will
.

.

(3)

contact

of

studied?

are

has

mate

neg¬

productive activities,
assets, spending, saving, and sim¬

of

Company,

"in short New

Hugh W. Johnson &

Inc.,

York

members

Stock

of

the

Exchange., He

supply" during the past 12 months will make his headquarters in the
firm's
Syracuse
office
in ,the
brought
about
rising
prices," was not the correct an¬ Onondaga County Savings J3ank
swer
that it was all goods and Building.
He
was
formerly
a
services in which prices rose?
partner
of
Winslow, - Cohu
&
"which

(1)

Are not all goods and

is

money

liberal

that

is almost

and

puts the brakes

po¬

on

almost
exoan-

which

scarce

serv¬

command

Stetson.

.

•

:

-

a

XII
The

Cost

When

cause

rising

not

fixed

authority,

by

not

terprise
there

governmental

it

true

that

not

if costs

there would

true

would

would

be

no

go
no

that

if

business

sion
early
enough
or
firmly
enough. It is so easy for the de¬
to
finance
the
Treasury

and
of

cheaply to interfere with tighten¬

decline?

(3)

City,
Stock

,

North

has

become

Carroll

H.

Camden

en¬

and
re¬

Is it not true that as asking
selling prices rise, the volume
goods or services taken may

-

Calif.—Wil¬

HILLS.

Glore

with

&

affili¬

Co., 324

Drive.

be

cessions?

sire

BEVERLY

liam R.
ated

i

Two With Peirsol

costs

business

bankrupt

York

New

Nev.r York

(Special to The.Financial Chronicle)

of profit?

prices

of the

With H. Carroll

the

prices, when

some

prices

margins
Is

that

Street,

Exchange.

costs

not

are

(1) Is it

determine

rising
was

Wall

members

Value

the result of - the
supply and demand?

determine

(2)

prices,

answer

forces of

no

of

whether

to

as

correct

40

Theory

questions and discussions

arose

for

amply

demonstrated in the United States
the twenties.

never

to

cable now?

in

second

in

give

investments

with

"

(2) Is there any reason to sup¬
pose that the principle found "to
be applicable then is not appli¬

powers.

restriction

"The

'

price?
Leavitt to Admit
(2) Is not scarcity or "in short
Effective Sept. 15, Bernice M.
supply" a relative thing measured
Leavitt will be admitted to lim¬
by the behavior of prices?
ited partnership in Leavitt & Co.,

their

standard there

v>

;

the

cur¬

There

that

;

of

Exchange,' has

redeemable

a

They
argue with some cogency that a
gold drain may impose credit re¬
strictions just at a time when the
country is in a depression and

is

members

ices

1949: "Of course, the modern eco¬
nomic planners don't like the
gold
standard just because it does
put

One

securities

Co.,

Stock

announced that it will
session
course
on

gold

when he made the following
statement in The Commercial and
Financial Chronicle
of Nov.

on

its

&

York

a

rency

limit

New

the

Treasury find

our

redemption

the

was

ably defeat those who think they

Did

irredeem¬
when

case

sell

to

teach that such currencies invari¬

of economic

is

Hardy

groups?

promises?

use

(14)

the

Investment Course

easily
interest

of

investors, and at lower
rates of interest, after the institu¬

various Admin¬

our

Hardy & Go. to Give

a

non-bank

istrations,

people

that

is redeemable in gold?

lected

sale prices?
value

is

Did not

tractual

purchasing

over

measured

the

the

more

rates

currency

than

calculation

irredeemable

not

depreciate

(12)

investors

non-bank

decline

must have

staff

questions all of which
pertinent and fundamental in

sell its securities to

so¬

private enterprise reached their
highest levels, and have not the
people been able to maintain the

in

When

evidence

any

can

Importance

have

his

answer

by the
Secretary and Senate Committee.

Readily in Gov¬

Securities

ernment

to

upon

to

as

thinking

respect to the issues raised

IX

Savers Invest

and

Secretary and

called

known

case

preceding
are

(7) Have not human freedom and

they

prices,

have

the

now

programs

the

been

the gold

is

common,

cialized?

most

determine

should

we

than

more

eco¬

Do

costs

Surely

re¬

point of view of "the modern

currency

possession of the people's purse?
(6) Has any nation witli a re¬

always

(1) Was the Secretary
the fact that, when the

thority

of

and

the

nomic

If

Burgess

date?

this

modern

a

Reserve Act

Secretary

Dr.

adopted

cur¬

10,

Participation in Earnings of Fed¬

to

nation

other forces

ex¬

it?

were

not

Gross National Product

outnut of

for

in

government

rency?

re¬

government

gency, such as war, when a na¬
tion's
currency,
like its people
and wealth, may become one of
the sacrificial
victims?

be learned

decline, assuming

net

ices

and

sharply,
on

increasingly

obtain its funds

(1) If government expenditures
reduced

in¬

banks,
together, drive down the
purchasing power of the people's

from such comparison?
for

continue

(1) Is not monetization of Fed¬
eral

helpful

explanation
as

every

a

(3) Is there

National Product at various
dates,
would it not have been
an

that

whose
leaders
since
early 1933 have promised to man¬
age our irredeemable currency in

comparison?

if

fact

a

employs irredeemable

preciated

non-bank

purchase

currency?
(2) Should

dates, would it not have been
helpful for all concerned if an
explanation had been offered as

fered

not

pectation that it would turn to the
banks and involve them and the
people of this nation in further

and

income

Federal

does

currency,

not

Dictatorial

power

securities, is it the Treasury's

except in

the

an

redeemable currency

a

it

Is

(.11)

Debt?

rates

should

vestors

to

the

Federal

interest

and

Treasury compared Federal debt

Since

(4)

acting

To National Income and
Gross National Product

national

of

dishonest variety of currency?

world

which the government and

IV

the

Should
to

for

some

Relating Federal Budget and Debt

Since

evidence

monetization of the Federal debt?

something else?
many

tization of

luctant

employed?

were

logic make
a

to

Indulge in Further Mone-

so

after

himself

versed

currency

rencies

Disposed

(5)

to

Currency Is Irredeemable?

the

not

honest

an

ing prices whereas a balanced
budget dyes not are much too
simple to conform to facts?
/

Treasury

Treasury official he

(3) If an irredeemable currency

of

the

accurate

that

and

opposite nature?

assertions that an unbalanced
Federal budget contributes to ris¬

Is

be

concede

when

Is

mon

the

attached,
precise

monetary

rencies?

generally

(1) For example, is not

(2)

spend; (b)
the burden and probable conse¬
quences of taxes being levied; and
(c) the method by which a deficit
is being financed — whether
by
borrowing from non-bank inves¬
tors
or
by monetizing Federal
debt through banks?
(1) Is it not a fact that the com¬

VI

which

are

spending

and its commitments to

ac¬

omitted and terms of

meaning

Federal

correct

irredeemable

of

better

served

"inflation," to
meanings
and

much

of

"Inflation"

the

not

nature

ana

have

to

redeemable currency?

a

world

V

order

(1) Is there any evidence that
irredeemable
currency
is a
sounder type of currency than is

or

Index of Prices

the

an

is

general,
impression
either
through the Secretary's testimony

cur¬

type of currency on which

build

the

(7) Has the Treasury done any¬
thing to correct that widespread,

it

the

to

well-being

economic

and old houses would sell for
mche
than when they were new?
could auctions be held?

Would
a

■

Thursday, September 5, 1957

:

determine prices, old automobiles

the

are

■.

of

why we need the gold

reason

(j.5)

credit policies?

is
improved as
the
figures on
Gross National Product increase?

or

human considerations

per

in

ounce

proper

was

general

our

fine

rapidly

state of abject

a

making

redeemable in gold at
present statutory rate of $35

this

when the German mark

declining

of

rency

country, would not that item have
been fantastically large in those
years

Secretary

wisdom

the

welfare

became

discussed
"The Available Alternatives" why
did he not give consideration to

con¬

are

the

When

cerned?

in¬

1947-1949=: 100)
May, 1957, was
117.1, whereas the index for con¬
sumer
prices,
which
involved
prices of 298 items in 46 cities,
rose from 59.4 to
119.3, showing a
decline of approximately 50%?
while

for

ap¬

1939,

the index for 1939

as

ices

far

so

the

standard."

Consideration

Redeemable Currency

dition in

when

people will be servea by re¬
sisting inflation.
These political
real

Tiiat Were Net Asked
been

credit

ing
the

and

16 of that Act?

tion

Questions

7,

■.

(Special to The Financial Chbonicle)

BEVERLY

liam

N.

Scherer

with
Santa

HILLS. Calif.—Wil¬

McKean
have

T.

R.

Peirsol

Monica

McKean

and

become

&

Samuel

connected

Co.,

Boulevard.

9645
Mr.

previously
with
Edward T. Cronin Comoany.
was

Volume

186

Number

5670

.

The Commercial and Financial Chronicle

.

.

27
4K

Waj.

Continued

from first

reaches full

page

flower

through their

summation

on

They

loan and discount facilities.

realize

also

Federal

Meaning of Membership in

prior
sad

rectorsv a majority of whom are

elected* by the member banks of
Federal

each

district.

Reserve

judgment on the ade¬
of the applicant's capital

pass

quacy

in relation to the

funds

In

turn, the Federal Reserve Banks
are subject to the general author¬
ity-of the Federal Reserve Board

and

much

mission

48

in

the
in

States

thority
ment.

same

the

the

to

that

au¬

capital funds

of

the

scheme

member bank

of

to

electorate.

Federal

Reserve

<

„

In

keeping with the concept of
a
contract between governor and
those
governed, membership
in
the

Federal

contracted

Reserve

as

System is
expression

free

a

Act

Board

serve

is

from

remove

officer of

or

the

is found to

member bank

a

in

which

is

party

ber

chosen

national

to

operate

charters

bank

under

that

district Federal Reserve Bank and
a member bank involve a grant of
specified privileges to the member
bank in return for an obligation

to

yield

considerable degree of

a

supervisory authority to the Fed¬
eral Reserve System.
The true
meaning of membership
in the
Federal

found

Reserve

System

is to be

in these

privileges and
ligations of membership.
shares

The

its district

that

of

Federal

an

entering

-the

are

capital

initial

in

Bank

of

its

membership in the Federal Re¬
serve System.
This stock owner¬

ship .entitles the member bank to
participate in the election
out

the

of

Federal

nine

of six

members

Reserve

the

of

Board

Bank's

of

Directors and to receive dividends

its

on

holdings at the rate of (>%
Inasmuch

per annum.

the

as

earn¬

ings of the Federal Reserve Banks
derive

largely from their special
position as central banks of issue,
due

and

the

to

Federal

Govern¬

ment's

enveloping role of respon¬
sibility for the Federal Reserve
System as the
nation's
central
banking
above

6%,

accounts

Banks,
claim

all earnings
well as the surplus

system,
as

of

are

of

Federal

the

Reserve

subject to the residual
the-Federal

Treasury.

Through these financial arrange¬
ments, the member banks share
with: the
the

Federal

rtotal

Government

capitalization

of

in

the

Federal Reserve Banks. Moreover,
as
the remaining three directors

Federal
an

Reserve

ment,

a

traced

Board,

which

distant connection
the

between

ernment

is

of the Federal Govern¬

agency

and the

can

be

Federal Gov¬

managements of

v

Ties

value

subordination

of

member

of

banking conduct to the

rior

group determination
appropriate standards
banking practice. As the mem¬

for

ber

have

banks

voice

in

eral

framing of banking
legislation, including amendments
the

to

Act, their
marked in¬

a

banking

Reserve

Board,

and

exemplified in the periodic
inations made of the
each

member

that

has

vidual

society

able

up to this
the obligations

■

personal

or

free

a

rights

some

Services

the

means

ties

have

been

because

referred

to.

acceptance

of

conform

for

to

ap¬

invested

of

most

ance

with

prescribed

broad

rules of

by regulation.

In

with, these principles, when
sidering the admission of
to

line
con¬

with

form

bank

membership in the System, the

Federal Reserve Board is required




a

legion

services for

modern

of

themselves

on

effective

the

and

U.

was

reserve

Reserve

of

the

pay¬

bank's

good, and the total of

its

anchored

assets

to

satisfactorily

an

acceptable degree of liquid¬
ity, he proverbially feels free and

willing to lend in

volume.

other

valuable

member

S.

Government

Bank

.

|

indirect

guidance in

Federal

real

a

sense

supplements the compelling influ¬
ence
of
the
System's
general
credit

controls

the

over

credit-

granting activities of the commer¬
cial banking system.
Along that
line, it should be mentioned that
general credit controls also
the

of

purpose

bank

and examination

serve

supervision

through the sort
by such

of credit climate induced
credit

controls

and

its

effects

on

commercial bank credit activities.

On the

Autonomous Instruments

Harking back to what has been
said to the rights and obligations
that

with

go

membership

in

the

Federal Reserve System, it is es¬
sential to emphasize that the gen¬
eral credit controls operated

through
credit

Federal

policy

individual

the

available

shall

be

banks

supply

of

to

how

credit

that the member

autonomous

are

System
to

as

allocated.What

is

means

Reserve

leave discretion

the

this

banks

instruments

for

carrying out System-credit policy.
This right to participate in the
conduct of national credit policies
I regard as a high
privilege of
membership in the Federal Re¬
serve System.

other

hand, if opposite conditions
prevail and the economic climate

However,
enjoyment
of
this
right by a member bank carries

is

with

bleak, he is naturally more cau¬
in reaching his loan deci¬

it

tious

sions.

the obligation to
with

versant

System
that

Provides Helpful Guidance
Federal

Reserve

System

a position to give
bankers helpful guidance in mak¬

ing

their

loan

investment

be

credit

pattern

con¬

objectives
activities

banks

that

of

the end
will

is

of

fall

consistent

with these objectives. This result
is attainable through mutual un¬

derstanding between the Federal
System and its member

Reserve

partly

lies

total

member

a

The source of this guid¬

decisions.
ance

and

the

into

the

credit policy, to

all'-the

indirectly is in

banks

in

the

System's

of what

the

are

objectives

supervisory responsibilities for the

to

operations

policy, and the communication of
these policy aims to the multitude

and

of

partly

its

in

member

banks,

its

overriding na¬
responsibility to employ
monetary and credit policies that
tional

will

be

conducive to
of

nance

banking

system.

connection,

the

sound

a

mainte¬

commercial

Imvthis

observing

by

latter

the

di¬

desired of

be

national credit

a

of bank customers whose coopera¬
tion is necessary to their effectua¬

tion.

Whether

mutual

the

endeavor

aim

is

of

such

stimulate

to

flagging economy by making
additional supplies of credit avail¬
a

rection and economic intentions of
Federal
Reserve
policy, and by

able, oy to restrain the expansion

also

the

studying the wealth

lished

the

economic

of

material

foundation

pub¬

that

which

on

is

that

policy is built, banks have at hand
an
invaluable guide for framing
their own lending and investment
policies that is reinforced by com¬

the

national

business

trends

of

credit

under 'Conditions
of

.overuse

economic
banks

stability,
the

and

System

are

Let

me

the

member

Federal

Reserve

allied in the

common

of the

cause

when

threatens

credit

public interest.
in conclusion, that

say,

this alliance of the member banks
in

a

common

eral
the

Reserve

cause

with the Fed¬

System

epitomizes

meaning of membership in the

Federal Reserve System.

Lefkowitz Cites Fraudulent Stock Sales in
New York Rural Areas

conduct

New York's Attorney General asks Sheriffs Association to
help
fight entry of fraudulent stock promotions into rural centers.

This is be¬

funds borrowed

Federal

between

a

con¬

Reserve

bank borrowing

member
Federal

Reserve

Banks

the

services

broad

commercial

interest
level
■

has

of

bank

credit

sustaining

of economic

a

in

of

stable

available

reserves

commercial

the

activity, and it

become advisable to limit

volume

the

the
to

banking system.

As primary purveyors of credit
and the most

dynamic and crucial
force in the array of credit-grant¬
ing institutions, commercial banks
are

Attorney General Louis J. Lef¬

conscious

of

the

bank

influence

of

economic

activity,

compelling

credit

and

on

that

kowitz called
out

all

the

the

sheriffs through¬
to assist him in a

on

state

fight against the
torney

General

reaching
the

into

state

said

the

to

The

takings that depend for their

con¬

''now

areas

of

annual
York

State

N. Y.,

address to

an

conference

Scaroon

at

the

of

Sheriffs

the
the

23rd
New

Association

Manor, Schroon Lake,

Aug. 20.
of

the

stock

operators,

growing interest of

public in the development of

uranium

and

other

mineral

de¬

posits both in the United States
and
Canada, are taking advan¬
tage of the haste of investors to
purchase the securities of these
companies.
But, of course, the
get-rich-quick schemes promoted
by these racketeers soon vanish
into

for

have

become

thin

air

of

many

into

and

comes

the

investor

victimized and

to the authorities

help," he said.

the

patterns which

familiar

to

his

of¬

state.

"Contact

may

salesman

be made with

a

investor
over

by a slick
the
telephone,

through

personal contact or
through advertising, But the re¬
sult is always the same.
The pro¬
moter looks for a quick profit and
leaves the investor with

"Unscrupulous
aware

that

fice, Attorney General Lefkowitz
said his office is now receiving
complaints from throughout the

worthless

Attorney General made the

appeal in

only then

under¬

are

rural

Noting

swindles fall

prospective

finds he has been

economic

of

stock."

entire

of

sellers

purvey

tempo of their credit-granting ac¬
tions can stimulate or restrain the
range

slick

fraudulent securities who the At¬

is

apt to occur at a time when

more

ren¬

securities, and the safekeeping of
securities.
However, the value of
Federal

optimism, the

performance

System mone¬

its own initiative by oper¬
in the open market. The

the

at

at

banks,
including, the telegraphic transfer
funds

bank.

borrowers

sanle

icy and

promptly
settlements. I)i

service

their

the

of

loan posi¬
If the period is

run

can

System monetary and credit pol¬

for

The Federal Reserve Banks per¬

of
a

Banks

possibility of this kind of

dered.

accord¬
conduct

the

flict

making

that

Federal

over-all

of general

one

borrowing at the

to

ating

.

capital and to operate in

to

recourse

Reserve

ply

payment
should be borne by the depositor
whom

general

climate

Reserve

of

Conflict

Possible

Federal Reserve Banks have
credit-creating expansi¬
as
the reserves that the
Federal Reserve System can sup¬

check should be paid its face
amount
and
that
the
drawee
cost

¬

afforded

bility

a

bank's

the

form

from

This requirement
accepts the thesis that the payee

for

to

its

of

member

standards

expanding

checks

membership
signifies
admission
into a legally constituted fellow¬
ship' of banking institutions en¬
tailing
an
obligation
on
each
bank

into

objective of System
policy is to restrain an expansion

on

of

the

and

economic

of his

a

effecting these settlements, mem¬
ber
banks
are
required to pay

of

propriate

bank

tary and credit policy.

Provided

businessmen

drawn

scheme

bank

the

of

cause

persuasive reason for accepting
membership in the System be¬
cause they
have endowed Ameri¬

financial

from

lead the borrowing

can

of Federal Reserve

by themselves

are

of

Bank.

borrowed

funds

counter

a

benefits

Reserve

for

Federal

the

and

the

-

This

has

bining their intimate knowledge
protection
that
is
of local conditions with an insight
its depositors
into the prospective local effects
unobligated control of its

an

•bank

to

Banks

by

Moreover, too frequent member

The incomparable check collec¬
tion services offered by Federal

banks

re¬

its resort fc)
working out a
in its reserve

Sees

de¬
indi¬

and privileges that go
membership in the System.

Reserve

the

is

member bank's

it

as

corporate

society

of

the welfare of
whole. It is now time

Valuable

in
it

a

otherwise

by

vantages
with

that

resources beyond the limit of the
deposits at its disposal and, in that
way, to extend its position and the

said

on

sacrifice

as a

are

pending

member

examine the compensating ad¬

to

loans

deficiency

a

Federal"

of

membership in the Federal Re¬
■assets.
serve
System and the principal
in

that

deciding on the merits of a loan
application, a banker is influenced

other

to

Federal Reserve Bank is undesir¬

of

the

Bank

reserves

means

ment

ascertain

control

by the Federal Reserve

of

"fundamental

been

point has dwelt

either

to

final
adjustment
position. The continuous employ¬

exam¬

practices conform to the condi¬
tions prescribed for membership
in the System.

mands

the

order

conditions, Fed¬

replenishing

other

quality of its assets af¬
adequate protection to its
depositors and that its operating

existence

of

reserves

is

condition of
to

bank

for

the

that

in

however, use of this
borrowing privilege is intended to
provide only a temporary source

fords

What

forcing

Properly,

therefore, subject to

public regulation and supervision
is the backdrop to the supervisory
authority
administered
by
the
Federal

good

vested

is

of

quired to keep 6n deposit with its
concept that
with a public

their par value.

is

ad¬

an

incalculable

assets

normal

district

interest and,

credit

bank,

form

a

Looking further into the credit
policy relationship between an in¬

ing

contagiously

honored

time

his

practicing

the

credit control currently in use
by
the Federal Reserve System.

The

amount

banking conduct.
The

of

Reserve

make

legislated standards for

on

of

to

shaped partially by the in

fluence of

is

usually made for the purpose of
permitting
a
member
bank
to

Federal Reserve

fluence

necessity

Under

important

an

is

selective

banks.

the

making

that

any

with

goes

spread

are

Membership in the Federal Re¬
System has a moral and
legal significance that transcends
in importance the purely financial
This-

of

deposit withdraw¬
the possibility is greatly re¬
duced that any circumstances ad¬
versely affecting its affairs will

supe¬

position

banker

tion

Banks

almost

of

that

liquidation

the

suitable

are

particular

right
of
from the

membership
Federal Reserve System.
Furthermore, as this borrowing
facility relieves a member bank

right of

of what

vestments

dividual

choice als,

bank's

derives

Reserve System, it is obvious that

meet abnormal

the

individual

mechanical

serve

This

Reserve

vantage

mem¬

alliance

of

pressure

borrowing

emergency

Federal

Reserve

a

con¬

in

now

collateral

asset.

mands

holding

Federal

credit

itself

This

times and

the

on

qualified

the

the-

the

Non-Financial

.

be¬

exercises

individual

in

of

in

can

the Federal Reserve Banks.

are

position to meet the

System mean, in effect, that this
particular kind of fellowship de¬

The conditions for

bership

of

a
Federal Reserve Bank,' in¬
cluding its Chairman and Deputy
Chairman, are appointed by the

unlikely

banks

the

purchases

evidence

most

member

former

banks,

simple fact that in de¬
ciding what types of loans or in¬

Banks

who
or

is

these

of

of

involved.

bank

ac¬

the

deposit
withdrawals
by obtaining cash through bor¬
rowing at their Federal Reserve

to

unsafe

succession

a

recurrence

in

thinking rightly has

stock

Reserve

bank

ob¬

continued

when

unforeseen

who

or

and

became similarly

cause

banking practices after,
having received timely warning.

au¬

tomatically
prescribe
for
such
membership.
The terms of the
membership "contract" between a

to

office,

if

difficulties

unsound

bank, except as to banks that

have

holds

solvency and led oil
spiraling destruction of val¬

Any

violate any law relat¬

he

diffi¬

of

lending

commercial

allies

control.
from

been

a

ing to the operation of the bank

of the will of the individual mem¬

deposit

sort

the

reported

System.

credit

naturally
with
the
Federal
Reserve
Sys¬
tem's general policies of credit

their

a

banks

director

any

abnormal

That

assets

ues

Re¬

empowered

office

of

of

credit.

whereas

general form of

over

all

that

a

to

-

Federal

and

raise

to

occurrence

that

System

a

separate

trol

gered

a

not

are

quickly

the

stress

by the ina¬

each

of

species

by forcing banks to liqui¬
at salvage values in
to get cash, often endan¬

date

con¬

-

Furthermore

Democracy at Work

culty,

mem¬

complied with.

Act,

tivities

order

for its

set

against

withdrawals.

for

to require

amend¬

financial

banks

sudden

My the

forfeit its

of

aggravated

of

cash

membership or
the regulations governing its
op¬
erations under the provisions of

the'Federal Reseive Act, their po¬
sition being akin to that ol the ' the

*

to

Federal Reserve

bership in the System if the
ditions

regional and central banking or¬
ganization that was established by

nation's

not met.

is empowered

Board

Finally, the member banks

requirements

are

token, the

same

Govern¬

of the Federal Reserve System are

the- foundation

the

been

bility

existing and prospective de¬
posit liabilities, and to refuse ad¬
if

1933-1935

periods

had

character

its assets and

the

experience had demonstrated

that

its

the

yield

way

Union

Federal

condition of

to

ments to the Federal Reserve

credit control

of

use

Reserve

policy exercises

Before the Federal Reserve Sys¬
tem was established in
1913, and

The Federal Reserve
to

Pre-1913 Conditions

i

the

a

worth¬

less

piece of paper. It has been
estimated that nearly $20,000,000
is

lost

each

month to the invest¬

ing public in the state."
In urging the assistance of the
sheriffs association, the Attorney
General

asked

that

they

turn

to his office any

evidence of
these fraudulent stock promotions
which
come
to
their
attention,
over

especially in rural areas.
He also
that they alert their dep¬

asked

uties

to

the

existence

of

these

frauds in order to provide greater

protection fdr the public.

..I", fflW '

The Commercial and Financial Chronicle

Continued from page

4

reflected

yet

revaluation

the

gold (or international)
which took place in 1935.

The Stock Market Outlook
...

all

.

of

here

,

personal

my

.

studies,

but

the high-spots:

are

First of all

from the

% or

by

ne,

ch

du ing

or

the

Another point I should

,,

year

business

read-

standpoint

"

of fundamentals, the most important consideration is the fact that

extremely important to look a,
demonstrated earning power in
estimating probable bear market
lows foi the> stock market, because
s c
data have a greater inlluenceon support levels of common

there would appear to be

greater

prospect
activity
from the peak of
December in the

of
ol

business

much

a

a

decline

15

/o

to

in

20%

147 reached last
F. R. B. Index of

business has been

artificially (and

we, ar,?.r1^

or

three

stock

the

like

market

high

the

to

basis

on

Fundarnentals,

is

we

tremely

deal

great

of

demand

stocks from

of

start to hear

a

about

propaganda

continuous

the
mon

»ex-

for

com-

institutional in-

vestors, who supposedly would (or

laPny

'a5s01.b

cou]d)

An_5uitiof

on

sciling whJch

the part of those

reasoning in the late 20's, when

I

am

the

months

to

go

into

some

and

ab]e

to

you

the

views

win

say

I

for

my

time.

I

fo?

is

only

markk

the

but I

those

are

in-

m*nd that, under current conditions, the majority of stocks can

cyclical
hope all

be expected to experience declines
of at least 40% to 50% on a set-

to

a

back in the market
only 25% to 30%.

whole

of the factors

one

than

volved in projecting or estimating
prospects for individual cornParies. It should also be kept in

understand that I realize the out-

i^k

for

give

suffjce

this

greater

any

have been

basis

at

demand

market trends, but I
do .not think that these risks are

Long-

Technical approaches,

believe that what

do

the

exceeds the supply. To be
there are certain risks in

projecting

of my

Fundamental

term

when

case

sure,

mar-

that I have not had

sorry

space

other

Thursday, September 5, 1957

goods

ket lows to date.)

mention at this time is that whenever

might develop

.

_

_

Propaganda

.

the

then

require-

reserve

before the subsequent stock
Recurrent

the

in

count rates in January, but

dollai\ lowered bank
\nents in June,

the

.

.

which

as

I hope all of

think it is something which should

you

averages

of

have adequate

opportunities for substantial capit

-

confident
we
,

during
total

the

net

last

few

private

rising much more

The

years.

debt

has

been

rapidly than has

.

...

valid,

is

won

111-

^ustrials should^decline to below
360. However, if

to again

aLC

we

jeg devei0ped by Mr. Edgar Law-

Smith,

rence

which were incorbis
book
entitled:

jn

p0rated

„

it

cause

,

is much

„

_

easier

make

to

of course, but my experi-.
has been that the probabilities of being right are about 4-to-l
wrong,

sound

appraisal of the allimportant factor'of management

a

ence

of

e

time-tested

outlined

all

-

—

jy

jiv.vv

than $25 billion

more

during

the past seven years. The
carrying
charges on the latter debt are now

probably equal to at least $4 bil-

i1.?,1.1

°r ^°+u
estimate of the

©u

IfnnSp!
mventoiics,

iiess

justments for

times
dollars reii

3S
even

price

case), the averages might ho d at
3% to 10% above this calculated
ma xim um
support level of
350-360.

T
ad-

after

changes, have

.

,.

..

„

.

>

.

Another Precedent

Another technical point is that
bear
markets

their

courses

do

not

tend

to

run

until the New YorK

ThU- mS fhMtafOUtth^rryCa/S' Times Industrials have declined to
n-n-t
thlnnriLi
a
part of the period since January, around the levels touched during
the first
Of

cin

T

quarter of the year

pre-

formed
the

Continued

foday> sbome

purchases

eauity

nately,

will show that
current

even

rate

100%

a

4.7%

ac-

amount of

private borrowing.

downside

periods.

Shortages Disappearing
With plant capacity now larger
rfhnn

Voo
has

u

than

it

ivnnn

w lcugci

n*

been

at

time

any

in

w

competitive

pressures

if

one

in

come

we

as

rn.mhiv

to

were

see

in the

©f much

a

$372,000,000,

and

This

1954.

leads

in

both

of

one

the

Studies: that is, bull markets
tend
to
run
their courses at around
14 to .15 times the
rate of

earnings

during

would

like

word

"rate"

mgs,
been

business

a

boom.

to

because

emphasize the
applied to earn-

as

many

people have
the implications
©f statements that the
Dow-Jones
misled

Industrials
pejiks

,

did

stocks

not

in

record

1929

were

times and 17

their

in

or

selling

times

the

third

a

"Tim-

as

t.
,

.

1937

at

which has

now

been

tested

«" actl,a!
'<>Z™VC th-an
years), mdicated that a major
P^ak was likely to be
witnessed in the early months of
\ Cu,mPa,ra
°,. .,le. Pefdcs
}vblch had been anticipated, by
p
*7'
in the
SP^S °t l»4o.-(Iiv the .first half
f
'
prevailing view was
'bat we could not have a bear
cy.? ca

,T

•

w*

.

;?

'be

19

5

mo!lcy

rjdes

so

low;

as

being accumulated by investors
the basis of a much

of

on

higher rate

corporate

income

than

^ nes?ed. ^°r the

u

Whole

gins

tors

years.

were

pay more
lor

the

oteel
j.26

and

time

and

For

m,

_

a

final

approach—

*bat of the "psychology cycle"—I
think we had sufficient warning
last summer, and again in the
sec°od quarter of this

year,

stock

of

U.

1937, when its high
earnings for the

S.

was

year

a little more

.j>8 a U. S. However,
share.
that
Steel

at the

creased

emphasis

placed

prospect?) (2) earnings

on a "cash

How" basis,, in total disregard

high, earnings were in exof .$1 a share
par month, so
that investors were

(3) cyclical trends which

its

cess

-(1)

inflation protection,"
as opposed to near-term earnings'

the need for depreciation

was

on

"long-term

selling

at

that

the underpinnings of the stock
theoretically willing to market were beginning to get
than 15 times
earnings rather weak. We started to see in-

of

reserves;
were

be-

subsequently
market" for

this

of

think

I

event

hflvo

birth rate, which really has little
the
annual
rate
or
anticipated to do with either consumer buying
level of
earnings during that year P°wer or the cyclical outlook. The
©f between $12 and
$13 a share!
situation from these points of view
The
significant
nnint
at
tV.o was almost diametrically opposed
moment
record

find

is

for

that

that in
the

the

rmct

10 times

reviewing

vcar?

Dow-Jones

the

to that which Prevailed

in the
high-

summer of 1949, when such

Indus-

Reports" sa;d that the 117,324 cars sched¬
United States plants during the week
123,130

.j.h




preceding week but in¬

an

orderly 1957 model cleanup.

expect
least

the

and

a
a

of the past week for model change was De Soto.time, Cadillac in Detroit plus four Buick-Oldsmobile-1 *
Pontine outsate branch assembly plants operated only four days.
*
same

statistical

The

Aueust

declines

IvWbSof 1959'Ail

402,575

an

pletion.
rise

is

regUiations,

that

seem to have a
experience broad
periods of distribution and/or accumulation,
interspersed
with

tendency

we

declines

from

average

from

205

touched
to 213

bank

reserve

and thereby lend
additional support to the economy,
within a few weeks after the

Dow-Jones Industrials decline by
about 75 to 100 points, from their
1956
high. I do not think that

standpoint,
the

Federal

reverse

the

until

a

reasonably safe
a
cyclical

from

and

Reserve

policies

unless
Board

as

which

have

the record shows that it

has always been desirable to exercise
patience
and
wait
until

a

clear-cut

Capacity

Producers of machine tools,

foundry equipment and industrial
reporting better business than they have seen jjn
months, according to this trade weekly.
It said a large volume of inquiries is making machine tool
builders optimistic about a fall upturn. Talk of three major auto¬
motive projects bolsters their outlook.
Tooling for them would
are

several

-

have to be ordered this fall.
With demand for castings from

railroad

car

builders remain¬

ing strong and signs of a pickup from the auto and appliance
industries, foundries are likely to continue buying equipment or
even
The latest figure, that for
June,
increasing their pace
+1,

represents the second highest month of the year and tne secona
in a row to show a gain,

the
does

been in effect during the past few
years,

models.

furnaces

Reserve

requirements,

auto

Of Ingot

early low is a distinct possibility may be found in my own
Federal

included
•

-

New orders for capital goods are showing signs of a pickup,
"Steel" magazine stated on Monday of the current week.

an

lower

h

sharp 23.6%>

Steel Mills Schedule This Week to Yield 82.7%

total bear market of about 25%.
A third reason for believing that

tlie

4

a

which

The value of new construction put in place in July fell 2%
$4,400,000,000, and was fractionally under the record July 1956
level, according to the United States Department of Commerce.
The month-to-month decline reflected cement shortages resulting
from the cement workers strike. Although there was the usual
seasonal advance in spending\on hew private dwellings, the total
value was 11% 'less than in July 1956.

a

may

<

ago

to

February until midthen experienced a
21% decline in nine weeks, out of

Board

year

July

was

the best month since March for industrial furnace
a substantial rebound from abnormally

orders and it represented
low June.

\

Orders

placed for steel a month or more ago, when ordering
brisk, resulted in steelworks producing at 182.5% of capac¬
ity last week, or a yield of 2,112,000 net tons. This is a half-point
gain over the previous week and the third consecutive week of
Improvement.
:
•
>
Steel companies are hoping for a significant improvement in

was

not

industry swings into its 1958 models

in the next few weeks.
even

in

1953,

when

the

Federal

Reserve Banks raised their redis-

'
•

"

Meanwiiile, Studebaker's start on 1953 assembly the past
brought to six the number of producers now building the "

new

and

theory that

said -the

represented
a

week

early

August,

total

August
and 90,432 trucks.

Only Ford and Mercury, according to the reporting service,
will build the 1957 cars into the fourth week of September.

advances

or

cars

combined

the >493,007 %or

Oldsmobile fading out.

to

sharp

very

The 609,500

above

industry entered the windup of its
1957 model production, with last week's DeSoto shutdown to be
followed this week by Plymouth, Dodge," Chrysler, Imperial and
Buiek. September's second week wrill see Chevrolet, Pontiac and

SEC

under

service
said
the week's
operations netted
estimated 522,000 passenger car and 87,500 truck com¬

"Ward's"

long-term buying zone might be
seen by as early as November or
December

all

Down

At the

other reason for believing that the
beginning of a Cyclical base or

several_ morths alter

earnings, and when the Dow-Jones
Industrials, at 16*0-170, had not as

the

the daily rate of new car sales for Aug. 11 to
strong 9.5% increase over Aug. 1 to 10, continuing to

a

steel demand when the auto
..

industrial activity-was- to
decline

in

new car market Aug.
11 to 20 from 43.4% in entire July
Chrysler Corp. continued with a 21% bite for the second
straight month.

we

at

substantial

f,irther

inS confused with long-term stocks will be in
actually only growth; and (4) the rise in the buying zone,

paying the equivalent of

in

from

of

December

or

that

In

year.

1946,
this
peaks ranging

^sych0l°ff.V Cycle

decline

Day

November

In

.

„

,e

declined

to 20 sales represented an 11% upturn over midJulv and found General Motors Corp. dealers in particular, show¬
ing new sales strength. General Motors dealers moved up to 46.3%

*rom+the 212 lc-vel,

Turning to

completion
a

the

The Aug. 11

-.

example, inves-

common

in

4v.eie
than

year

profit marthe final three
months of

m

these

to

as a
because of the

principally

collapse of sales

was

of

some

brighten prospects for

in light jggg to August, 1.937, with the
respectively, for these years. The
7
pent-up demand for homes, Dow-Jones Industrials subseE°mlis °fj9n overlooked that at
P1, ? s, an
a^most every- quently declining by 41% in less
Voorr ne
highs for 1929 and
e SP'
;s n? business being than 15 weeks, within a total bear
1937 were
recorded, stocks were an lnvestment adviser. )
market at that time of about 49%.
earnings,

chat

possibility that the bear
market, in terms of the averages,
may run its course by as early as

^ spnng of 1946 I was which tend to "make up for lost
that.
Anyone who thinks time." In 1937, for example, the
Dow-Jones Industrials will market held within a rotating dis1f
P,°ol\ ' ?r. ^'^ost tribution range from November,'

Pyi x!11

from

"Ward's" said

suPei'fi(,1'd research that ha? year or two, with some stocks
doilc 111
,s field. One of the ^making their final lows during
% overlapping cycles that 1 the early stages of a long accudiscovered in the late 20 s mulation range, while others might

by

either

until

*

months

important conclusions sugfiested by my long-term
Technical

I

known

for

20 showed

the

"trading

more

reached

approach—that

(and
to

Approach

35%

creased 101% over the same week in 1950.

by

held

Returning to my Timing Stud¬
ies, I might mention that I can

should

_

"

me

Third

stocks

of

down

plants prepared for a long Labor
end and another entered into model changeover.

marked

2% of th-

or

0ther investors!

see

hesitate to talk about

supply

Publicity which has been given to

j

greater proportions than

readjustments
1949

A
I

total

anyM

activity with-

six to twelve

next

49n

additional 1%

an

decline

^

over-all business

^qo

loughly 390-420.

o£

ing"—because of the amount of

surprise to

a

objectives during war
terms ol the Dow-

are

increasing steadily. Under the cir¬
cumstances, I do not think it
should

such

In

nf

of goods are

while

of

J°"f .Industri.als> th,is app'oocir
SL1ggests a probable bear market

1)1 story, shortages of all types
disappearing rapidly,

our

overshoots

point

dire

period.

"Ward's Automotive

uled
were

same

7

page

about

to

last week

week

rule"

in the

In the automotive industry passenger car production

rise

of equity

from

similar 1956

Unfortu-

simple'arithmetic

little

a

amounted

any

on

weakness.

broad-scale

the

is

The State

and

pension funds
will
prevent any substantial market
decline, through an acceleration of

in

than

that time to capitalize
groww
popularity
of

people seem
believe that mutual investment

their

eomnetition

t

equities>
trusts

intense

and

„,vwcM,.v...

are

maybe

...

„

Dow-.Jones

me

Completion of inventory reduction and an upturn in demand
from the

automotive industry would suggest that production would

Volume

186

5670

Number

.

The Commercial and Financial Chronicle

.

.

29

(1029)'

rise in the last three

compared

includes

comparable date

In

or four months of this
year, a period which
October, historically high in steel production.

the

all-time
It

first

eight
for

record

6,200,000

was

this

of

months

the

period, that
ahead of the

tons

steelmakers

year,

set

though steel output this

78,600,000 tons of steel.
same period
last year and

earlier this year,

July's 8,896,000

only two

For

the

second

significant rise in operations

any

consecutive

are

American

Iron

and

Steel

Institute

that

announced

2,116,000 tons

ingot and steel

of

for castings,

82.2% of capacity, and 2,103,000 tons (revised)

week

a

like week

For the

duction 2,043,000

a

month

The

A year

tons.

placed at 2,429,000 tons

was

The

operating

rate

is

ago

not

;

ago.

capacity

was

is

light and

energy

distributed

by

Output the past week
than the level for the previous period.
Institute.

was

somewhat larger

week's output climbed 124,000,000 kwh., above that
week and rose 582,000,000 kwh., or 5.0% above the
comparable 1956 week and 1,441,000,000 kwh. over the week ended
Sept. 3, 1955.

Loadings of revenue freight for the week ended Aug. 24, 1957,
increased by 8,500 cars, or 1.1% above the preceding week, the
Association of American Railroads reports.

of 5,254

units

"

totaled

and

-

;

117,324 units

below that

and

.

!

:

•

and ^industrial

•

Small

edged

up

to

as

casualties, under $5,000, dippeds to

and

were

steers.

represents the sum total of the price per pound of
foodstuffs and meats in general use and its chief function

retail

raw

is to show the general trend of food

prices at the wholesale level.

Wholesale Commodity Price Index Held to
;

a

Narrow

Range the Past Week

commodity price level held within a narrow
range last week.
The daily wholesale commodity price index,
compiled by Dun & Bradstreet, Inc., registered 292.10 on Aug. 26
The

general




the

of

staff

South

BEVERLY HILLS, Calif .—Rich¬

in

McKinney has

joined the
Taylor and Company, 439

staff of

children's

of

back-to-'.

North

Bedford

sales bf maior appliances'
remained Close to

furniture

(Special to The Financial Chronicle)
on

BEVERLY
fred

Regional esti¬
1956 levels by the following

HILLS, Calif. —Al¬
and James Ryan

Mosier

R.

have

affiliated

become

Daniel

D.

Weston

Co., Inc.,"
WilshireBoulevard, mem¬

bers

of

Pacific

the

Coast

Two With J. A. Overton
(Special to The Financial Chronicle)

CORONADO, Calif. —Theodore
Reinholtz and Hugh D. Ryan have

furnishings lagged again last week.

newspaper strike in Boston had more effect
during the week than a week eariler, noticeably
Retailers in Chicago and
reported the most considerable gains in sales of men's

associated
& Co.;

with

close to the level of,the preceding week.

registered

on

Board's

ir

HOLLYWOOD, Calif.

!

-

above

trade

to

9

sales

to

that

cf

an

in

New York

11% above the comparable

week

than normal weather which obtained

a

was

and

Midwest

ber

of

the

New

York

Stock

change, passed away Aug. 23.

qVJR "VOa,

ago.

cooler

during the week.

City for the weekly period ended Aug. 24,

957, increased 2% above that of the like period of last

preceding week, Aug. 17,

For the four weeks

registered.

1957,

a

rise

ending Aug. 24, 3 957,

of

an

8%

was

year.

In

reported.

increase of 5%

was

For the period of Jan. 3, 3.957 to Aug. 24, 1957, the

recorded

oeriod of 1956.

a

gain

of

4%

above

that

of

the

was

George Russhon, partner in Rosenbaum & Russhon and a mem¬

According to the Federal Reserve Board's index, department
store sales in New York

Stock

George Russhon
-

week

year

the

Coast

—

become

B.

Exchanges.
Mr.
Gladstone
formerly with J. Logan & Co.

increase of 2%

City the past

hag

Arthur

Pacific

1956.

volume

Delmar
connected
Hogan, Inc., 6705
Boulevard, members of the

Gladstone

a country-wide basis as taken from'
index for the week ended Aug.
24,

important factor in the favorable sales picture

index

A.

J.

1134 Orange Ave.

With Arthur B. Hogan

trade

advanced

the

Stock

i. Exchange.

continued

Retail

3

with

&

.9235

volume

For the period Jan. 1, 1957 to Aug. 24, 1957,

An

was

Weston Adds Two

'

Sunset

was

He

and the California Bank.

1957, increased 1% above the like period of last year. In the pre¬
ceding week, Aug. 17, 1957, a gain of 4% Was reported. For the
four weeks ended Aug. 24, 1957, an increase of
2% was recorded.
,

Drive.

formerly with H. E. Work & Co.

past week were primarly interested in boys'
jackets and girls' sweaters and skirts. A notice¬
purchases of women's Fall dresses, suits and coats

and

B.

ard

with

The index
31

to

With Taylor & Co.

considerably higher than a year ago and orders showed moderate
year-to-year gains. The call for major appliances and furniture

declining

oats,

added

Francis & Co., 291
Cienega Boulevard.

La

Attendance at showings of floor coverings in New York wds

food price index,

price

been

Julian

the

the Federal Reserve

Lowgr
flour, corn, hams lard, coffee, cottenseed oil, beef

Louis

St.

BEVERLY HILLS, Calif. —Jay
and
Aaron
M.
May man

have

Anticipating a post-Labor. Dav upsurge in consumer buying,
noticeably increased their orders for women's " Fall
apparel and children's back-to-school merchandise.

Increase in Latest Week

rye,

the

of

Eason

Overton

was

wholesale cost last week were wheat,

of

^

Julian Francis Adds

.

16

barley, bellies, butter, cocoa, beans, eggs, hogs and lambs.

director

(Special to The Financial Chronicle)

,'

the comparable

Department store sales

in

Committee

retailers

Liabil¬

for two consecutive weeks, the wholesale
compiled by Dun & Bradstreet, Inc., rose some¬
what on Aug. 27 to $6.32. This was 0.5% higher than the $6.29
of a week earlier and exceeded the $6.04 of the similar 1956 period

a

Federation

Analysts Society.

clothing.

Wholesale Food Price Index Registers Slight

by 4.6%
Higher in

National

become

Atlanta

preceding week.

After

the

Analysts for 5 years. He is pres¬
ently Chairman of the Program

reducing volume in household goods.

41 from 42 but

ities exceeded $100,000 for 22 of the week's failures as against

Inc.

president of the
Society
of
Financial

Louis

of

Middle

rise in

The

262

remained above their toll of 34 in the similar week of 1956.
in the

;

varied from

occurred

Upward the Past Week

failures

Co.,

past

a

moderately exceeded that of a year ago.
Sales promotions helped draw attention to men's Fall
suits and
topcoats and sales equalled those of the simliar 1956 week. The

in the
week ended Aug. 29 from 260 in the preceding week, according to
Dun & Bradstreet, Inc. However, the toll was considerably higher
than the 237 last year and the 215 of 1955 and exceeded by 14%
the pre-war level of 229 in the comparable week of 1939.
Failures with liabilities under $5,000 increased slightly to 221
from 218 and were up moderately from the 203 of this size a year
ago.

slight year-to-year, gain-in the

levels.

Shoppers
able

• :

built last week

&

Analysts and has been

snorts shirts and

,

-

is

call for men's

were

Nicolaus

:

He

St.

Atlantic, South Atlantic and East South
Central States +3 to 4 7; Mountain +2 to
+6; East North Central
and West North Central +1 to
+5; Pacific Coast 0 to-f4; West
South Central —1 to -f 3 and New
England States —5 to —1%.

on

Commercial

wi)s a

ago

mates

.

Business Failures Edged

Stifel

since 1937 and has been in charge
of
their
research
and
analysis

ago,

compared with 6,246 in the preceding week and 500 in the like

period a year ago.

with

according to estimates by Dun & Bradstreet, Inc.

of the preceding week's

-

Stock

Exchange as Manager of the Re¬
search Department in St. Louis.
Mr. Keaney has been associated

re-

frac¬

The total dollar volume of retail trade in the
period ended
Wednesday of last week was 1 to 5% higher than a year

while truck output advanced by 552 vehicles

18,705 trucks were assembled.
/
Canada, 4,139 cars and trucks

purchases

consumer

automobiles, while volume

year

percentages:

In

-

sugar

in

rose

apparel lilted total retail trade
moderately over that of
the preceding week, and ,
(he comparable period last year..

There

In the corresponding^week last year 58,166 cars

during the week.

prices

Exchange estimated that cotton consumption

School

18,705 a year ago.
Last week's car output declined below that of the previous

week by 5,806 cars,

Cocoa

of the New York

work.

the United

both

reported there were 21,043 trucks made
This compared with 20,491 in the previous

States.

improvement.

expanded moderately,

,An upsurge in

/

week and

and

no

Above Year Ago

Last week the agency

t

showerd

members

(Special to The Financial Chronicle)

output, states "Ward's."
in the United

Total rice trading was
from Cuba climbed

demand

Average
32,500

compared
with 123,130 (revised) in the previous week.
The past week's
production total of cars and trucks amounted to 138,367 units,
decline

the

Trade Volume in Latest Week Rose
1% to 5%

entered into model changeover.

output

and

daily consumption in July was 25,800 bales as against
bales in the prior month and
27,400 bales a year ago.

ended- Aug. 30. 1957,
according to -4 "Ward's Automotive Reports," declined 4.7% as
some plants prepared for a long Labor Day week-end and another
car

railroad

Wholesale rice inventories

use.

States amounted to 645,000 bales in
July compared
with 650,000 bales in June and
547,000 bales in July 1956.

24, 1957, totaled 759,140

Day Holiday and Model Changeovers

week's

slight price

York

Frank X. Keaney

sugar

cocoa

m

Passenger car output for the latest week

a

high level

a

Passenger Car Output Adversely Affected by

Last

and

New

While prices of raw sugar advanced
somewhat, refined
unchanged from the level of a week earlier.
Trading

corresponding week in 1955.

or

at

The New York Cotton

: cars, a decrease of 11,273 cars, or 1.5% below the corresponding
: 1956 week and a decrease of 28,132 cars, or 3.6%
lower than the

'•

at

Reports that the United States Department of
Agriculture
plans to make recommendations for further
changes in the farm
programs resulted in a slight decline on cotton futures
prices.
Trading fell last week following indications that domestic con¬
sumption of cotton in July registered more than a normal decline.

/

Labor

receipts

oils.

Loadings Rose 1.1% Above Preceding Week But
Were 1,5% Under Like 1956 Period

U. S.

Flour

A lag in hog trading last week resulted in a
moderate decline
prices. Hog receipts in Chicago were close to those of both
the previous week and the
comparable 3956 period.
Although
cattle receipts fell
slightly, they were noticeably higher than a
year ago.
There was a moderate decline in trade, but
prices
were close to those of a
week earlier. A slight rise in
purchases
of sheep resulted in
appreciable price increases. A define in lard
futures prices reflected the decreased
prices on hogs and vegetable

The past

Loadings for the week ended Aug.

reported.

in

of the previous

Car

,y-.

a

period last year.

1957, was estimated at 12,147,000,000 kwh., according to the Edison
Electric

higher

with 414,769

industry for the week ended Saturday, Aug. 31,

power

were

%■'%;"A

was sluggish.
Warehouse stocks
reaching 353,674 bags compared
bags a year ago. Total arrivals for this year so far
totaled 2,494,855 bags compared with
3,051,676 bags in the similar

of

electric

the

X

tionally, but the volume of trade

Somewhat for Week and Was

electric

of

amount

Exports to Germany and Poland

noticeably.;;

5.0% Above 1956 Week
The

,

unchanged.

higher than capacity in 1956. The percentage figures for 1956 are
based on an annual capacity of 128,363,090 tons as of Jan. 1, 1956.

Electric Output Rose

ST. LOUIS,
Mo. — Frank X
Keaney has joined G. H. Walker
& Co., Broadway & Locust
Streets,

Friday amounted to 71,018 sacks with 35,138 sacks "

on

sustained

iined

because

Keaney Joins

G. H. Walker & Go.

preceding week, while marked decrease in

for export and 35,880 for domestic
were limited and prices were

the actual weekly production

comparable

was

were

terminals

98.7%.

or

the

buying of flour lagged during the week

declines

the rate was 79.8% and pro¬

ago

Frank

s

production rate for the weeks in 1957 is
annual capacity of 133,495,150 tons as of Jan. 1, 1957.

on

the

on

slight rise in total grain purchases on the Chi¬
cago Board of Trade last week. Trading amounted to about
265,000,000 bushels compared with 250,000,000 bushels in the prior
week and 219,000,00 bushels a
year ago. Average daily purchases
totaled about 53,000.000 bushels.

The industry's ingot

based

of

anticipated.

There

the

compared with

as

with 295.87

prices occurred.

than

steelmaking scrap declined. In the week ended Aug. 28, the com¬
posite was $52.17 a gross ton,, a drop of $1.33 from the preceding
week.
;• V% ,v ■,>
V'.'"
The

levels

year ended June 30.

a

operating rate of steel companies, having 96.1% of the steelmaking
capacity for the entire industry will be an average of 82.7% of
capacity for the week beginning Sept. 2, 1957, equivalent to

and

Although wheat trading continued at the level of the prior
week, prices fell slightly. The Government reported that 547,00(),000 bushels of wheat were put into export during the
crop

bellwether of steel production.
week, "Steel's" price composite on

as

earlier,

ago.

•

1953, 9,405,580 and in 1955, 9,594,545 tons.

contrary to

the

rye

the August yield of 9,180,000 net tons surpassed
Output for the month has been better in

prices, often regarded

scrap

to

was

tons.

years, in

Running

is lower than it

week

a

year

a

grain prices declined during the week and despite an
appreciable rise in trade, soybean prices fell noticeably. There
was a
moderate gain in purchases of oats and
prices increased
somewhat.
Corn trading and prices in Chicago were both close

is

summer

293.00

Most

an

2,600,000 tons ahead of the corresponding period in 1955.
Even

with

corresponding

^

SAVING"*

Ex¬

30

The Commercial and Financial Chronicle

(1030)

.

.

Thursday, September 5, 1957

.

* INDICATES

Securities
Akin

Now

in

Registration

California

Distributors, Inc.

Electric

Aug.

Power

Co.

(9/17)

Price—Of class A and class B common, $1.50 per share;

ers—Merrill Lynch,

and of

Proceeds—To retire bank
Office—718 South Bould¬
Underwriter—May be Walston & Co.,

preferred, $1 per share.
working capital.

loans and for

er, Tulsa, Okla.
Tulsa, Okla.

Life

&

Casualty Co.

(9/9)

Aug. 16 filed 300,000 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record

Sept. 6 at the rate of

one

held; rights to expire on Sept. 23. Price—To
supplied by amendment. Proceeds —For expansion.
Office—Park Ridge, 111.
Underwriter—A. C. Allyn &

be

Co,. Inc., Chicago, 111.

Chicago, 111.
Jiily 15 filed 21,000 shares of common stock (par $8) be¬
ing offered in exchange for outstanding common stock
of Allied-Albany Paper Corp. on the basis of 5/22nd of
a share of Allied stock for each share of Allied-Albany
stock; offer to expire on Sept. 6'.
Statement effective
Aug. 7. Exchange Agent—Continental Illinois National
Bank & Trust Co., Chicago, 111.
Aloe

Aug. 9
stock

Paper Corp.,

(A. S.)

Co., St. Louis, Mo. (9/6)
(letter of notification) 7,450 shares of

common

(par

$5).
Price—At market (estimated at $37
Proceeds—To Estate of Edith R. Aloe, de¬
ceased.
Underwriters
Newhard, Cook & Co. and
Scherck, Richter Co., both of St. Louis, Mo.
share).

per

—

Aisco, Inc., Akron, Ohio
Tuiae 2?

ment

Van

(9/11)

filed

200,000 shares of common stock (par $1).
share. Proceeds — For expansion, repay¬
of loans and for working capital.
Underwriter—

Price—$7

per

American

Price—At

Income

Fund, Inc., New York
500,000 shares of capital stock (par $1).

market.

writer—None.
ment Adviser

Proceeds—For

Burton

H. Jackson

Securities

—

investment.

Under¬

is President.

Invest¬

Cycle Research Corp., New

York.

(par

one

sent). Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex.

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
.Edmonds,* of Houston, three of the 22 directors, arre
Chairman, Vice-Chairman and President, respectively.
New

Amphenol Electronics Corp.

(par $1).

be

supplied by amendment.
Proceeds—To
prepay bank debt and other indebtedness and for work¬
ing capital and other general corporate purposes. Un¬
derwriter—W. E. Hutton & Co., Cincinnati, Ohio.

* DeLuxe Check Printers,
stock

ferred
stock

stock

Duke

Knudsen, Inc. Underwriter—Hornblower & Weeks, New

Office—77 Woodbine St., Quincy, Mass.
Underwriter—Pilgrim Securities, Inc., New York, TNT. Y.
El Paso Natural Gas Co.
i ~ *

Aug. 7 filed $60,000,000 convertible debentures due Sept.
1, 1977 being offered for subscription by common and
basis

Anchorage Gas & Oil Development Co., Inc.
July 24 (letter of notification) 160,000 shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For
development of oil and gas properties. Office — 505
Barrow St., Anchorage, Alaska.
Underwriter—Grace C.
Tucker, 500 Wall St., Seattle, Wash.
Apache Oil Corp., Minneapolis, Minn.
July 22 filed 200 participating units in Apache Oil Pro¬
gram 1958.
Price—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas leaseholds; and for
other corporate purposes. Underwriter
none; sales to be
made through corporation and

APA, Inc., its subsidiary.

Belgium (Kingdom of)
(9/11)
Aug. 20 filed $30,000,000 of external loan 15-year
fund bonds due 1972 (U. S.
dollars). Price—To
plied by amendment. Proceeds
To finance
public works projects being undertaken by the
—

Government.

• Colonial Aircraft
Corp., Sanford, Me.
July 5 filed 248,132 shares of common stock (par 100).
Price—At market.
Proceeds—To selling stockholders.
Underwriter—Glick & Co., Inc., New York. Statement
effective Aug. 10.
• Comico
Corp., Memphis, Tenn.
May 2 filed 750,000 shares of common stock. Price—$2
per share.
Proceeds—To construct mill; for payment on
mining leases and royalty agreement. Underwriter-

Southeastern

sinking

•

"

(letter of notification) 14,000 shares of com¬
(par $10) to be offered for subscription
by
stockholders and employees.
Price—$12.50 per share.
stock

machinery, equipment, inventories

and

Washington and Cherry Sts.,

Underwriter—None.

Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to

be offered first to
present limited partners at the rate of
$1,000 unit for each $1,000 of his present
investment;
then to public.
one

Price—$1,000

unit.

Proceeds

—

To

plant; to purchase machinery and equipment;

and to reduce

duces

per

outstanding demand notes.

Business—Pro¬

electro-dynamic shaker and other vibration test
Underwriter—None. Robert C. Lewis, Philip

equipment.

C.

Efromson

Mass.,

are

and

the

Thomas

general

Limited Partnership.




Gouzoula, all of Winchester,

partners

of

Fund,

this

by Employees & Group Associates and the re¬
by The Employers' Liability Insurance .'Corp.

mainder

Inc.

Office—San

Francisco, Calif.

Offering

—Expected in October.
June 26 (letter of

Mines, Ltd.
notification) 150,000 shares of

Massacnusetts

common

Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.,
stock (par $7).
Price—At market (closing price on To¬
ronto Stock Exchange as of June 14, 1957 was $1.82 bid
and $1.85 asked, per share). Proceeds—For
mining ex¬
penses.
Office—c/o Roy Peers, 9 De Casson Rd., Mon¬
treal, Canada. Underwriters—Thomason, Kernaghan &
Montreal, Canada.
Consolidated Natural Gas Co.
construction

by

determined

program.

Underwriter—To

competitive

bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; White, Weld & Co. and
Paine, Webber, Jackson and Curtis (jointly); Morgan,
Stanley & Co. and the First Boston Corp. (jointly). Bids
—Expected to be received up to 11:30 a.m. (EDT) on
Sept. 17 at Room 3000, 30 Rockefeller Plaza, New York
20, N. Y.
Consumers

Aug.

23

filed

Power Co.

$35,000,000

(9/23)

first mortgage bonds due
bank loans and for construc¬
tion program. Underwriter—To be determined
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
1987.

Proceeds—To

of

repay

Inc.; White, Weld & Co. and Shields & Co. (jointly);
Morgan Stanley & Co.; The First Boston Corp. and
Harriman Ripley & Co. Inc.
(jointly). Bids—Expected
to be received up

to 11:30

a.m.

(EDT)

on

Sept. 23.

Cougar Mine Development Corp.
March 15 (letter of notification) 560,000 shares of com¬
mon stock (par one cent).
Price — 50 cents per share.

Underwriter—Morgan Stanley & Co.. New York.

* Ex-Cell-O Corp,. Detroit,

thereto.
Fall

River

Power

Co., Colorado Springs, Colo.

Aug. 23 filed 500,000 shares of

stock

(no par).
off note, pur¬
equipment and milling facilities, for development
work, and for acquisition of additional property, work¬

Price—$2

share.

per

common

Proceeds—To

pay

chase

ing capital and

other corporate purposes.

—None.

(9/17)

Aug. 15 filed $30,000,000 of debentures due Sept. 1, 1982.
be

March 28

construct

investment.

Proceeds—For

Batteries, Inc.

—

* Emp overs'
Group Associates, Boston, Mass.
Aug. 9 filed 88,761 shares of common stock (no par) be¬
ing offered for subscription by common stockholders of
record August 27 on the basis of one new share for
each four shares held, rights to expire on Sept. 18. 'Price
—$48 per share. Proceeds—For formation of life insur¬
ance company, 51% of the voting stock of which will be

owned

Income

Consolidated Fenimore Iron

Bridgeview Towers Associates, Fort Lee, N. J.
25 filed $360,000 of participations in
partnership
Price—$10,000 each participation (minimum).
Proceeds—To buy an apartment
building. Underwriter

Office

acquisition of mines; and for working capital. Office—
Jerome, Idaho. Underwriter — For public offer,1 John
Sherry Co., New York.

Aug. 29 filed $2,000,000 of participations in company's
Employee Stock Purchase Plan, together with 52,000
shares of common stock which may be acquired pursuant

and

interests.

working capital.

Commonwealth

*
Empire Sun Valley Mining Corp. <9/17)
Aug. 9 filed 340,000 shares of common stock, of which
200,000 shares are to be publicly offered at $3 per share
and 140,000 shares to stockholders of Sun Valley Mining
Corp. at $1 per share.
Proceeds—For exploration and

Belgian

July

Conshohocken, Pa.

Offering—

Underwriter—White, Weld &

Ltd.

Underwriters—Morgan Stanley & Co.

Proceeds —For

York.

•

program.

York.

For

—

mon

New

Co., New

Aug. 8 filed 500,000 shares of common stock (par $1).
Price—$8 per share (for a 21-day period). Proceeds—

★ B-l-F Industries, Inc.
Aug. 29 (letter of notification) 2,600 shares of common
stock (par $10)
Price—$33 per share. Proceeds—To go
to
a
selling stockholder.
Office
345 Harris
Ave.,
Providence, R. I. Underwriter—Brown, Lisle & Mar¬
shall, Providence, R. I.

C & D

Corp.,

for construction

be sup¬
various

Smith, Barney & Co., both of New York.

—None.

Securities

Expected momentarily.

of

held; rights to expire on Sept. 11, 1957. Price—100% of
principal amount. Proceeds—To reduce bank loans and

shares

held;
on Oct. 3, 1957. Price—At par ($50 per
Proceeds—To reduce bank loans. Underwriter—
None.
American Telephone & Telegraph Co. owns? ap¬
proximately 30% of the outstanding capital stock.

B stockholders of record Aug. 26, 1957 on the
$100 of debentures for each 29 common shares

common

Aug. 2 filed 124,991 shares of capital stock being offered
Aug. 27, 1957

share.)

-

(9/10)

working capital.

rights to expire

York.

Office—Elizabeth, N. J.

Power Co.

Eagle Oil & Supply Co., Inc. (9/23-27)
Aug. 16 (letter of notification) 125,000 shares of common
(par $1). Price—$1.20 per share. Proceeds—For

Co., Inc., New

10

1,650,000 shares of capital
Price—At market. Proceeds—For

cent).

one

stock

Bell Telephone Co.

share for each

pre¬

share.

Price—$10.10 per unit.
Big Ben Supermarkets; for equip¬

common

Underwriter—To be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.;
Stone & Webster Securities Corp. Bids—To be received
up to 11 a.m. (EDT) on Sept. 10 at Room 1308, 48 Wall
St., New York 5, N. Y.

for subscription by stockholders of record
new

common

one

construction.

Corp.

one

of

Aug. 8 filed $50,000,000 of sinking fund debentures due
Sept. 1,1982. Proceeds—To repay bank loans and for new

May 14 (letter of notification) 600,000 shares of common
(par $1—Canadian).
Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada. Underwriter—
Jean R. Veditz Co., Inc., 160 Broadway, New York.

the basis of

(par

investment.

stock

on

one

shares

* Diversified Growth Stock Fund, Inc.

York, N. Y.

Suburban

and

180,000

and

to be offered in units of

Aug. 29 filed (by amendment)

Chatham Oil Producing Corp.
July 29 (letter of notification) 100,000 shares of 1.9 cent
non-cumulative convertible first preferred stock
(par
30 cents). Price—$3 per share. Proceeds—For oil devel¬
opment operations. Office—42 Broadway, New York 4,

Cincinnati &

$10)

New York.

Underwriters—White, Weld &

Aug. 21 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For
acquisition program, including acquisition of Danbury-

N.

and merchandise for five new supermarkets; and
working capital and other corporate purposes. Office
—Glendale, L. I., N. Y. Underwriter—S. D, Fuller & Co.,

Co., New York; and Scott, Horner & Co., Lynchburg, Va.

Uranium

530

—

ment

Carolina Pipeline Co., Greenville, S. C. (9/11)
Aug. 16 filed 300,000 shares of common stock (par $1).
Price—To he supplied by amendment. Proceeds—For

Chess

Office

Underwriter—None.;

for

Weld & Co., New York, and Scott, Horner & Co., Lynch¬
burg, Va.

&

(par

10 cents)

Proceeds—To acquire

shares of common stock (par $1) to
be
of $25 of notes and one share of
stock. Price—To be supplied by amendment. Proceeds—
For construction of pipe line.
Underwriters — White,

Rothschild

stock

(par

ferred

1963 and 42,000
offered in units

F.

St., St. Paul 4, Minn.

Dilbert's Quality Super Markets, Inc.
(9/9^13)
Aug. 1 filed 180,000 shares of 7% cumulative first pre¬

Carolina Pipeline Co., Greenville, S. C, (9/11)
Aug. 16 filed $1,050,000 of 7% subordinate interim notes

Underwriter—G.

to

machinery and equipment.

new

Wheeler

Caramba Mokafe Corp. of America
July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Office—701 Monroe St., Hoboken, N. J.
Underwriter—
Garden State Securities, Hoboken, N. J.

•

(9/10)

quire

common

be offered to employees and present
Price—$11.80 per share. Proceeds—To ac¬

(par $1)

stockholders.

Underwriter—None.

Y.

Inc.
25,000 shares of

Aug. 28 (letter of notification)

• Canada Mortgage Bonds, Ltd., Englewood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
tificates.
Price — At par (in units of $250, $500 and
$1,000). Proceeds — For purchase of mortgage bonds.

due

expenses,

Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.

(9/10)

Aug. 13 filed 250,000 shares of common stock

N.

American Provident Investors Corp.
Feb. 15 filed 50,000,000 shares of common stock

af

Drilling. Inc., Olney, III.

construction of pipe line.

Alstyne, Noel & Co., New York.

May 24 filed

Underwrit¬

share for each

new

six shares

Allied

Calvert

ISSUE

diamond

For

—

prospecting

Pierce, Fenner & Beane and Kidder,
Pcabody & Co., both of New York.

Price—To

American

All

Proceeds—To reduce short-term bank loans.

REVISED

drilling on company's lands,
working capital and other corpor¬
ate purposes.
Office—83 Campfield St., Irvington, SN. J.
Underwriter—Roth & Co., Maplewood, N. J.

Proceeds

23

stock

PREVIOUS

ITEMS

•

filed 140.000 shares of cumulative preferred
(par $50). Price—To be supplied by amendment.

90,000 shares of class A
common
stock, 90,000 shares of class B common stock
and 25,000 shares of preferred stock (all of $1 par value).
(letter of notification)

Aug. 2

ADDITIONS

SINCE

■

Federal

Insurance

Underwriter

..."

Co.

June 7 filed 400,000 shares of capital stock

ing offered in exchange for
Life
on

Insurance

the

Share.

Co.

basis

of

Offer

has

holders of

more

four

100,000 shares

America

of

Federal

become

capital

shares

effective

(par $4) be¬
of Colonial

stock

for

upon

(par

each

$10)

Colonial

acceptance

than 95% of Colonial stock and will

by

con¬

tinue to and

including Sept. 20, when it expires. DealerManagers—Tl)e First Boston Corp. and Spencer Trask &
Co., both off New York. Exchange Agent—Fidelity Union
Trust Co., Newark, N. J.
First

International

Fire

Insurance Co.

Aug. 26 (letter of notification)
stock

(par $1).

Price

—

100,000 shares'of

$3 per share.

common

Proceeds

—

For

capital and surplus and for first year's deficit. Office3395 S. Bannock St.,
Englewood, Colo. Underwriter American Underwriters, Inc.,
Englewood, Colo.
First National Life Insurance Co.,
Phoenix, Ariz.
July 29 filed 106,500 shares of common stock (par S4),
of which 90,000 shares are to be offered
publicly and
16,500 shares to employees pursuant to stock purchase
options. Price—To public, $12 per share. Proceeds—For

Volume

Number 5670

186,

.

.

The Commercial and Financial Chronicle

.

expansion and other corporate purposes.
None.

Florida
March

flie

1

-/

Underwriter—

•

.

//•••'•' :

850

Price—$1,000

Trust.

of

certificates
per

beneficial

interest

in

Proceeds—Tc

certificate.

purchase, iease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property
acquire

'

Guardian

Insurance

by

Corp., Baltimore, Md.

Aug. 16 filed 300,000 shares of

200,000 shares

Trust, Pompano Beach, Fla.

i'iied

4

•' •V

'

\

of warrants which

to be sold at 25 cents per warrant

are

share. Proceeds—For min¬
S. E. 74tn Ave., Portland,

September
Southern

Pacific

(9/10)
stock (par $2).
Proceeds — To
is the selling
& Co. and Alien

16 filed 200,000 shares of common
be supplied by amendment.
D.
Turnbow,
President, who
stockholder. Underwriters—Dean Witter

Aug.

Price—To

Grover

(Bids

Inc.

(9/17-18)

Aloe
1

(A.

Newhard,

S.)

Office—Brooklyn, N. Y. Underwriter—Mortimer
Burnside & Co., Inc., New York.

Cook

14

Inc.;

(Offering

1.537.500 shares of common

ceeds—To

the

Attorney

B stock

(no par)
(par $1). Pro¬

General of the United States
competitive bidding

Underwriter—To be determined by

Inc., and The First Bos¬
(jointly); Kuhn, Loeb & Co., Lehman Brothert
Forgan & Co. (jointly). Bids — Had beer:
scheduled to be received up to 3:45 p.m. (EDT) on Ma>
13 at Room 654, 101 Indiana Ave., N. W., Washington 25

ton Corp:

D.

Automatics Corp.,

...

17, 1956 filed 82,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachablt
warrants
to
purchase 160,000 shares of partu lpaiirifc

For'expansion and working capital. Underwriter—None
named.
Offering to be made through selecteo dealers

Jeffcrles

<Auchincloss,
and

Telephone Corp.,

of common slock (par 810)
convertible preferred stock
'(par $50) wbick were offered in exchange for common
and preferred stocks of Peninsular Telephone Co. on the
shares

1.3

of General common for each share
and one-half share of General

Peninsular common,

share for each share of Peninsular 81 pre¬
ferred, 81.30 preferred and $1.32 preferred. Offer to pre¬
ferred stockholders expired on Aug. 14 and that to com¬
mon
stockholders of Peninsular extended to Sept. 13.
Dealer-Managers—Paine, Webber, Jackson & Curtis and
Stone & Webster Securities Corp.
preferred

Electric

oueruig

of common

10 cents) to be offered in units of one $50
shares of common stbek. Price—$100

(W.

Duke

Corp.

outstanding debt and for working capital. Office—
St., New York, N. Y. Underwriter—A. G.
Securities Corp., 52 Broadway, New York, N.

Natural Gas Corp.

(Keiwi,

Price—$1.25 per share.

Angeles, Calif.
St.

Proceeds—For explo¬

improvements, expansion, etc.

Louis, M'i.

~

$35,000,000

Common

Inc.)

$150,000

be

Invited)

Bonds

$20,000,000

Common

Wisconsin

D.

Fuller

Public

i

•

Common

&

Co.)

Service

$1,125,000

Co

Common

&

to stockholders—underwritten
by The First Boston
Merrill Lynch, Pierce, Fenner & Beane; Robert W. Baird
& Co.,
Inc.; and William Blair & Co.) 253,494 shares

Corp.;

September 24

shs.

200,000

Utah

Common
Co.)

&

invited

Co.

Co.,

Power

Utah Power &

.Bond*
$50,000,000

i

Allen &

Inc.;

Securities

Corp.;

Co.,

$15,000,000

noon

Common

EDT)

400,000

September 3D

shs.

shares

(Monday)

Gulf States Utilities Co.-

Debentures

Aetna

Bonds

EDT)

noon

Light Co

(Bids

200,000

Co. >

(Tuesday)

Light Co

(Bids

Common

and

&

shares

250,000

.*

Reed

St. Lot'is County
(Offering

Johnson

(Bids

noon

Bonds

EDT) $17,000,000

and

$300,000

i

Vvalker &

H.

underwritten

be

../■

Southwestern

by

&

Co.)

33,000

kv

/

Securities

September 11

t>

Gas

$25,000,000

Co.)

Alstyne,

Stanley

(Morgan

Carolina

&

(Bids

Co.

Barney

Welti

deba.

and

Co.

Horner &

Lehigh Portland Cement Co._
■'

First

(The

Boston

Consumers
(Offering

(Offering

to

stockholders—underwritten

common

Boston

First

380,312

Corp.)

—..Common

26.320

Rand

Sperry

11

Debentures

Lynch,

Merrill

and

<

React

Dillon,

Co.

&

Inc.)

Pierce,

Fenner

(Offering

to

11

EDT

noon

underwriting)

September 17
Lynch,

Pierce.

Peabody

Co.)

11:30

a.m.

((Bids

&

and

Beane

Ohio

Power

(John Sherry Co.)

(Mortimer

B.

Kidder,

(Kidder,

(Eastman

Mining
Dillon,

Inc.)

invited)

$3,500,000

-

19

Bonds

(Tuesday)
Bonds

11

EST)

a.m.

3

$25,000,000

(Tuesday)

to

be Invited)

Bonds
$20,000,000

(Tuesday)

Indiana & Michigan Electric Co

$500,000

(Bids

11

a.m.

EST>

Bond®

$20,000,00®

Debentures
Co.)

$12,000,000

—Debentures

Co

Union

$2,000,000

December 10

Common

&

be

invited)

Virginia Electric & Power Co

$600,000

Inc

Peabody

to

be

Common

General Tire & Rubber Co
Homestake

(Monday)
Bonds

to

December

Debentures
$30,000,000

Burnside & Co.,

Bonds
$12,000,000

Co
(Bids

$7,000,000

EDT)

18

November

Preferred

(Bids

Laboratories,

(Thursday)

EST)

Mystic Valley Gas Co

(Bids

(Tuesday)
.

Bonds

$20,000,000

Co

Lawrence Gas

(Bids

Empire Sun Valley Mining Corp
Forest

7

noon

Bonds

—

Co

invited)

November

$3,000,000

Natural Gas Co

(Bids

•H.:«

(

$2,500,000

Fenner

&

be

$250,000,000

(Wednesday)

Electric
to

Bonds

California Electric Power Co
(Merrill

$50,000,000

(Tuesday)

Invited)

November

$50,000,000

i

$8,000,000

Diego Gas & Electric Co

Common

Natural Gas Co
(Bids

be

to

November 6

(Bids

(Monday)

invited)

be

EDT)

a.m.

$30,000,000

Mohawk Power Corp
to

by

American Telephone & Telegraph Co.—Debentures

Bonds

stockholders—no

underwritten

(Tuesday)

$40,000,000

16

be

$35,156,760

Bonds

be Invited)

October 29

(Bids

Co

Water

Ha van

Debentures

stockholders—to

Power Co

(Bids

(Thursday)

(Bids noon EDT)

New

(Wednesday)

October 22

Bonds

Co

Electric

Philadelphia

Bonds

Stanley & Co.)

Merrimack-Essex

September 12

Co

received) $10,000,000

Consolidated Edison Co, of New York, Inc..-Bonds

$110,000,000

Beanet

&

14^Monday)

16

(Bids to

Debentures

Eastern Transmission Corp

Texas

$6,000,000

$30,000,000

EDT i

a.m.

Corp

Brothers

(Lehman

shares

Bell Telephone Co

Jersey

Pennsylvania
\

Kidder & Co.)

(Offering to stockholders—underwritten by A. M.
-

by The

..Bonds
$40,000,000

Co

common

Morgan

shares

Long Island Trust Co

be

Preferred

Bonds

Power

to

Power

to

Common

Cement Co

Portland

Lehigh

or

$50,000,000

(Thursday)

about

incited)

be

October

Debentures

-

to

Corp

Co.)

to

Oregon

Preferred

Bonds

RR

(Bids

$30,000,000

Corp.i

(Tuesday)

10

October

California

Scribner) $1,500,000

&

Deane

-.--Debenture®
$25,000,000

$25,000,000

Iron

(Bids

300,000 shs

Co.)

&

Terminal

Common

Scott,

Hagan Chemicals & Controls, Inc
(Singer,

Toledo

shs.

common

Co

Pipeline
Weld

Fuel

$1,050,000

Horner & Co.)

42.000

and

Invited)

(Allen &

__Note & Common

and Scott,

& Co.

Colorado

$30.0n0.ono

Co.)

&

be

October

Bonds

Smith,

and

to

shares

200,000

(Thursday)

invited)

Commonwealth Edison Co

of)

Pipeline Co

Carolina
(White,

Co.)

Noel &

(Kingdom

be

October 8

(Wednesday)

Common

(Van

to

Debentures

$100,000,000

System, Inc.

(Bids

Debentures

&

Alsco, Inc.
Belgium

(Tuesday)

October 3
Columbia

shares

Transmission Co., Ltd
Union

1

Telephone Co

(Bids to be invited)

.-.Common

(McDonald

Bell

30.000 shares

Co.)

Fetzer Co.

Dillon,

October

\

National Bank__-_,y___Common

stockholders—to

to

u.

Scott &

&

Roman

;

.

Office—Los

Underwriter—Dempsey-Tegeler &
Offering—Expected in September.




-Bonds
EDT)

a.m.

*

Consolidated

filed 779,393 shares of common stock (par 50
subscription by common stock¬
holders of Great Lakes Oil & Chemical Co. on basis of
one-fourth share of Natural Gas stock for each share of
Oil &
Chemical stock held with an oversubscription
costs,

$4,260,000

(Monday)

(Hal) Productions
(S.

&

shares

Inc

.(Dean Witter &

..

Y.

to be offered for

privilege.

Stone

by

...Common

Weeksi

Hycalog, Inc.

15

ration

&

be

to

Dairies,

Wisconsin

225 East 46th

cents)

150,00 shares

(Oxtering to stockholders—underwritten by Emanuel
Deetj
& Co.)
38,124 shares

Roach

:

(Bids

Foremost

"July 22 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—To

'July

to

Tu^,e Corp

$299,99y

(Tuesday)

Co

(Bids

Great Lakes

10

Hutton

E.

Power

Niagara

Angeles, Calif.

•

237,039'

217,286

Hornblower & Weeks

143,000

Equipment Trust Ctfs.
EDT)

noon

(Pilgrim Securities,

Common

September

16 (letter of notification) 3,500 shares of common
stock (par $1). Price—At market.
Proceeds—To sell ng
stockholder.
Underwriter—Lester, Ryons & Co., Los

Bellin

Norfolk & Western Ry

San

Aug.

pay

Common
bv

between

Northern Indiana Public Service Co

$300,000

Corp.i

(Thursday)
Co.

Eagle Oil & Supply Co., Inc

Co., Inc.
shs.

Co.__

(Hornblower

Inc., Los Angeles. Calif.

Giant Petroleum

Sons)

(Bids 11:30

$91,540

&

Calvert Drilling, Inc

unit. Proceeds—To discharge short term obligations;

purchase merchandise inventory; and for working cap¬
ital.
Office — 1022 18st St., N. W., Washington, D. C.
Underwriter—Whitney & Co., Inc., Washington, D. C.
Gervsco,

Garrett &

-Common

Co.)

Co.)

$17,500,000

Consumers Power Co
Co.)

Common
&

Securities

(Bids

10-vear 6%

debenture and 20
per

&

Blauner

fStcckuOiiieiis—uimerwriun

to

Genie Craft Corp.

-Aug. 8 (letter of notification) $100,000 of
convertible debentures and 120,000 shares
(par

Syle

Co.)

Beane)

$20,000,000

September 23

$800,000

D.

&

Bonds

Sulphur

(Bids

Amphenol Electronics Corp.

New

stock

&

Mandell

(Kessehnan

of

170,000 shares of 5.28%

of

Robert

Preferred

Milton

Sulzberger

»Joseph

t

.

...Common

Redpath;

Debentures

EDT)

noon

(Bids to

New York

May 24 filed 1.480,787 shares

basis

and

.

and

(Wednesday)

(Offering to stockholders—underwritten

$1,818,000

Inc.

59,400 shares

Fenner

September 19

Common

Thorndike,

Common

Pierce,

Lake

Allyn

C.

(John G.) Film Corp

-

(White,

of

Co.)

200,000 shares

Pacific Power & Light Co

..Common
A.

by

Strato-Missiles, Inc.
Tampa

Lynch,

•

notification) 240,000 shares of cominoi
stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for. expansion of subsidiary cor¬
poration and for working capital. Office—c/o Edwin
F. Clements, 5312 Glenwood Ave.,. Youngstown, Ohio
Underwriter—L. L. LaFortune &. Co.,. Las Vegas, Nev

.June 18 (letter of

and

&

Hallowed,

Stratford

(Eastman

General

&

Inc.)

Cylinder Gas Co

(Merrill

6,756 shares

Co.__

Parker &

Westcoast

Application is still pending with SEC.

i~

National

(Bids

Casualty Co.

Fuller

D.

Co.,

H. Walker & Co.)

•>

Silvray Lighting, Inc.-

preference stock, to be offered in units of $500 oi deben¬
tures and 40 warrants.
Price—$500 per unit* Pruceeds—

i

Inc.)

(Monday)

(Straus, Dlosscr & McDowell)

Atlanta, Ga.

Aug.

Parking, Inc.

Co.,

&

and

(Offering

Credit, Inc.,, Washington, D.'C.

General

&

Co.

Common

September 18

shares

..Common

Preferred & Common
(S.

,

?

Cassell

September

100,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls; and for other corporate purposes. Ad¬
da ess—c/o Positronic Corp., 2572 Ridgemore Road. N
W
Atlanta, Ga, Underwriters—Armstrong & Co., Atlanta
Ga.
' V.
\ '/•.
•

7,450

Co.)

Super Markets, Inc.

Krueger (W. A.)

Webster

May 23 (letter of notification)

General

F.

*

C., but bidding has been postponed.

✓

and C.

Dilbert's Quality

Glore,

General

•

Richter

& Co.. Inc. i 300,000 shares

Probable bidders: Blyth & Co.,
and

Scherck,

stockholders—underwritten

to

,

_

(Childs,

42b,snares of common A stock

filed

and

Oil

1,750,000 shares

Corp

(G.

(Offering.to stockholders—underwritten by Scott, Horner & Co.;

Mnson-Hagan,

Chemical

Common

Co.

&

32

page

Common

Continental

of

Co.—no underwriter)

(Blyth

Virginia Telephone & Telegraph Co

UCtjX"*

on

Instruments, Inc

(Friday)

Quaker State Foods Corp

General Aniline & Film Corp., New York
Jan.

Statham

$18,000,000

Co

All American Life &

poses.

-

EDT)

a.m.

September 6

development and for other general corporate pur¬

and

Hudson's Bay

$7,500,000

September 9

28 filed 200,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's products, working capital, addi¬
tional inventory and accounts receivable, for research

B.

(Offering to stockholders

Bonds

11

AV UA

Hudson's Bay Oil & Gas
Co., Ltd

*

Aug.

and

(Thursday)

EDT)

VI

CALENDAR

Equip. Trust Ctfs.

noon

X

Underwriter—None.

Continued

ISSUE

Tampa Electric Co

& Co., both of New York.
Forest Laboratories,

VVVV/UO

A

★ Gulf States Utilities Co. (9/30)
Aug. 29 filed $17,000,000 of first mortgage : bonds due
Oct. 1, 1987.
Proceeds—To repay bank loans and for

UBS

Inc., Jacksonville, Fia.

Foremost Dairies,

•

5

Co._

(Bids

Underwriter—None.

Ore.
•

Office—433

operations.

ing

per

X

ital and general
corporate purposes.

organizers, incorporators, management, and/or direc-

NEW

Price—$8.50

exercise

upon

Fluorspar Corp. of America

shares held.

T-v

to be publicly offered and the remain¬

are

Underwriter—None.

May 28 (letter of notification) 30,000 shares of common
stock (par $1) to be offered for subscription by common
stockholders on the basis of one new share for each foui

-

stock, of which

common

ing 100,000 shares reserved for issuance

to

31

(1031)

Securities

&

Co.)

$12,000,000

)
Suburban

December 11
Electric

(Wednesday)

Co

(Bids to be Invited)

Bonds
$4,500,000

The Commercial and Financial Chronicle

(1032)

22

Continued from page

by competitive bidding. Probable bidders: Halsey,
& Co
Inc.: Merrill Lynch. Pierce, Fenner and

Stuart

Beane
and White! Weld
& Co. (jointly); Salomon Bros. &
Hutzler and Eastman Dillon, Union Securities & Co.
(jointly): Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly): Stone & Webster Securities Corp.; Lee
Higginson Corp. Bids—Expected to be received up to
(EDT)

noon

Sept. 30.

on

Gurries Manufacturing

working

for

San

Co.

Proceeds—To pay current indebtedness
capital. Office—1720 S. First Street,

Underwriter

Calif.

Jose,

Inc.,
Englewood, Colo.
July 29 (letter of notification) 100,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For oper¬
ation of an insurance company in Colorado through its
subsidiaries. Underwriter—American Underwriters, Inc.,
Englewood, Colo.
it International Resources Fund, Inc.

—

&

Hooker

Fay, San

capital stock (par

Isthmus

Steamship & Salvage Co., Miami, Fla.
May 21 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—To

purchase

a

writer—Anderson

ship and for working capital. Under¬
Cook Co., Inc., Palm Beach, Fla.
v

stock

(par 20 cents) to be. offered in units of a $1,000
and 10 shares of stock, or a $100 debenture
share of stock. Price—Par for debenture, plus
$2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other capital im¬

notification) 000,000 shares of common

provements; for retirement of present preferred shares;
and for working capital, etc. Under writer—None.

—

Nickel Mines Ltd.

23 (letter of

July 30 filed 810,000,000 of 5^2-3% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common

Singer,

capital. Underwriter
Scribner, Pittsburgh. Pa.

laboratory and working

it Hampshire

Pro¬

Janaf, Inc., Washington, D. C.

Hagan Chemicals & Controls, Inc. (9/11)
Aug. 20 filed 30.000 shares of cumulative convertible
preferred stock (par $50). Price — To be supp-ied by
amendment.
Proceeds — For construction of research

Aug

(N. Y.)

Price—At market.

cent).

one

(par Si-Canadian). Price — 50 cents per share
Proceeds—For development of property and for general

stock

debenture

and

•

one

Jefferson

Lake

Sulphur Co. (9/19-20)
undetermined number of shares of

Suite 607, 320 Bay St.,
H, JVCoqney & Co.,

Aug. 27 filed an
com¬
mon stock (par $1), may be between 143,000 to 150,000
shares, to be offered for subscription by common stock¬

Holy Land Import Corp., Houston, Texas
Feb. 27 (letter of notification) 100,000 shares of common
stock
Price—At par ($3 per share). Proceeds—For in¬

share for each five shares held; rights to expire on Oct. 7.
Price—To be supplied by amendment. Proceeds—To in¬

corporate purposes. Office —
Toronto, Canada. Underwriter
New York.

—

-

holders of record Sept.

Underwriter—Benjamin

capital, etc.
Co., Houston, Tex.

ventory, working
&

Homestake Mining Co.

22 filed 85,000,000 of subordinate
bentures due 1972. Price—To be supplied

convertible de¬

b" a^PivWnt.
and development of cer¬

Proceeds—To repay bank loans

acquisition of\ additional
mining properties. Underwriter-—Eastman Dillon, Union
uranium

properties

and

Securities & Co.. New York.

"Koor"

Aug. 22 filed 87.000,000 of sinking fund debentures due
1969
Price—To be supplied by amendment. Proceeds—

bank loans and for development of
uranium properties and acquisition of additional
To

repay

certain

mining
properties. Underwriter—Eastman Dillon, Union Securi¬
ties

New York.

& Co.,

Horace

Mann Fund,

Inc., Springfield, III.

100,000 shares of capital stock (par $1).
Proceeds—For investment, uistributor and Investment Manager—Horace Mann Investors,
June

filed

27

market.

Price—At

Inc., Des Moines, la., of which Charles F. Martin is also
Office—216 E. Monroe St., Springfield, 111.

President.
•

Hudson's Bay ©if & Gas

Co. Ltd.

Trading into Hudson's Bay

Industries

State

of

("Hudson's Bay Co."). The

offering to stockholders of Continental Oil is to be at
the rate of one share for each 15 shares of Continental

& Crafts

Co., Ltd.

Independence Issue Bonds and State of
Israel Development Issue Bonds). Proceeds — For ad¬
to subsidiaries in connection with their expansion

Office—Haifa, Israel. Underwriter—None.

programs.

Kruager (W. A.) Co., Milwaukee, Wis. (9/9-13)
Aug. 12 filed 100,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For construction of new

plant, for payment of equipment notes, etc., and for
working capital. Underwriter—Straus, Blosser & Mc¬
Dowell, Chicago, 111.
Lehigh Portland Cement Co. (9/11)
Aug. 20 filed $30,000,000 of sinking fund debentures clue
1979. Price—To be supplied by amendment. Proceeds—
To repay bank loans and for expansion and
working cap*
ital.

Office—Allentown,

Pa.

Underwriter—The

First

New York.

Lehigh Portland Cement Co. (9/11)
Aug. 20 filed 380,312 shares of common stock (par $15)
to be offered for subscription by common stockholders
of record Sept. 10, 1957 on the basis of one new share
for

each

1957.
For

10

shares

held;

rights to

expire

on

Sept.

25,

Price—To be supplied by amendment. Proceeds—

expansion and working capital.
Corp., New York.

while the offering
to holders of ordinary shares of Hudson's Bay Co. is
to be at the rate of 11/6 shares of Hudson's Bay Oil
& Gas stock for each 15 ordinary shares held of record

rights will expire on or about Nov. 1.
supplied by amendment. Proceeds—For
development and exploration costs. Office — Calgary,

offered

Underwriter—The

Sept.

1957;

3,

Price—To

be

Alta., Canada.

Underwriter—None.

Hudson's

Co.

Bay

have

agreed

Continental Oil and

to

75%

purchase

and

25% respectively, of the shares which shall not be sub¬
scribed for

by the

Hutchinson

Aug. 21
stock to

holders

of the two

companies.

(letter of notification) 1,697 shares of common
be offered for subscription by common stock¬
on

shares held

share).

stockholders

Telephone Co., Hutchinson, Minn.

the

basis

of

one

new

share

of Aug. 20, 1957.

for

Price—At
Proceeds—For expansion of plant.
as

each

par

five

($10 per

Underwriter

Lehigh Spinning Co., Allentown, Pa.
Aug. 16 (letter of notification) $245,000
ordinated

(par

convertible

in

exchange

debentures

for

due

outstanding

for

par).
Price—At 100%
Proceeds—To redeem preferred
Warren W. York & Co., Inc.,

of

of

1972

to

6%
be

preferred

principal

stock.

sub¬
first

stock

amount.

Underwriter—

Allentown, Pa.

Madison

Improvement Corp., Madison, Wis.
July ;29i filed 50,000 shares of common stock. Price—At
par ($10 per share). Proceeds—For working capital, etc.
Underwriter—None.

Henry Behnke is President.

Maine Insurance Co., Portland, Me.
Aug. 22 filed 53,500 shares of capital stock (par $3), of
which 11,000 shares, at $5.31 Va per share, are to be of¬
fered for subscription by stockholders of record
July 1,
1957 at the rate of

one

new

share for each share held. The

remaining 42,500 shares are to be offered to directors,
employees and agents of the company for a period of
Hycalog, Inc.. (9/10)
14 days at $5.62 42
July 24 (letter of notification) $300,000 of 6si% convert¬
per share.
Price—$6.25 to public.
Proceeds—To increase capital and surplus. Underwriter
ible debentures due Sept. 1, 1967 to be first offered for
—First Maine Corp., Portland, Me. Burton M.
subscription by stockholders. Price — 99% of princi¬
Cross,
pal amount. Proceeds—To retire bank notes and to pur¬
President, will purchase any shares not subscribed for
chase equipment.
Office—505 Aero Drive, Slireveport,
by stockholders.
La. Underwriters—Keith, Reed & Co., Inc., Dallas, Tex.;
Mascot Mines, Inc., Kellogg, Idaho
Aetna Securities Corp., New York, N. Y.; aiid Roman
mJune 3 (letter of notification) 800,000 shares of common
& Johnson, Fort Lauderdale, Fla.
-stock. Price—At par (17¥2 cents per share).
Proceeds
Inland Western Loan & Finance Corp.
g—For mining expenses. Office—Sidney Bldg., Kellogg.
Aug. 16 filed 2,500,000 shares of class A non-voting com¬
Idaho, Malcolm C. Brown is President. Underwritermon
stock (par $1) to be offered for subscription by
Standard Securities Corp., Spokane,
Wash., and Kellogg,
holders of special participation life or endowment con¬
Idaho.
tracts issued by Commercial Life Insurance Co. Price—
it Merit Pharmaceutical Corp. of America
$1.50 per share. Proceeds—For operating capital for two
Aug. 26 (letter of notification) 120,000 shares of common
subsidiaries and to finance expansion program. Office—
stock (par 30 cents).
Price—90 cents per share. Pro¬
Phoenix, Ariz. Underwriter—None.
ceeds—For machinery and materials, raw materials and
it Institutional Shares Ltd., New York
packaging supplies, and working capital. Office—12419
Aug. 30 filed (by amendment) 1,000,000 additional Insti¬
N. E. 13th Ave., North
Miami, Fla. Underwriter—None.
•

Proceeds—For
•

investment.

International

par)

Duplex Corp., San Francisco, Calif.

Dec. 21, 1956 filed 500,000 shares of
one

cent).

Price—$1

per

share

Vallev

Portland Cement Co.

1956 filed

1,600,000 shares of capital stock (no
of which 708,511 shares are subject to an offer of

rescission.

Price—$3

per

share.

Proceeds—For comple¬

(pai

tion of plant, provide for general creditor and for work¬

Proceeds—To equip and

ing capital. Office—Jackson, Miss.
Underwriter—None,
offering to be made through company's own agents.

common

stock

establish five super launderettes and for working cap¬




Mississippi
Dec. 26,

Thursday, September 5,1957.

common

stock

to

be

offered

stockholders in units of

common

warrant for each

seven

shares held.

for

subscription

share and

one

Price—To

.-one

be sup¬

plied by amendment. Proceeds—For expansion program.
Office
Grant Bldg., Pittsburgh, Pa.
Underwriter—
—

None.

.

Oil

Corp., Billings, Mont.
July 11 filed 22,474 shares of class A common stock and
539,376 shares of class B common stock to be offered in
units of

one

class A share and 24 class B

shares, which

shall not be separately transferable until May 1, 1960. Of
the units, 14,474 are to be issued in exchange for or con¬
version of working interests in joint lease acreage oper¬

ations, etc., and 8,000 are to be offered for subscription
by existing stockholders, on a pro rata basis. Price—$75
per unit.
Proceeds—For development and exploration
costs, etc. Underwriter—None.
Montek Associates, Inc.
July 16 (letter of notification) 60,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To
pur¬
chase

additional electronic test
equipment, shop ma¬
chinery, and to increase working capital. Office—2604
South State St., Salt Lake City, Utah.
Underwriter
D. Richard Moench & Co., Salt Lake
City, Utah.

Monticello

Associates, Inc.

Feb. 18 (letter of notification) 300,000 shares of
common
stock.
Price—At par ($1 per share).
Proceeds — For

capital

expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,

Philadelphia, Pa.
Mortgage Clubs of America, Inc.
Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100,

plus

sales

a

commission of

$10

unit

per

to the company. Proceeds—To be invested in small
loans
secured by second mortgage on home
properties. Office

—Springfield, Mass. Underwriter—None. Charles Hershis President.

man

Mount Wilson

Mines, Inc., Telluride, Colo.
24 filed 400,000 shares of class A common
stock
(par 50 cents). Price—$1 per share. Proceeds—For ex¬
ploration and related purposes, including construction of
June

a

mill.

Underwriter

—

Investment Service Co., Denver.

#

Colo.

Municipal Investment Trust Fund, Inc. (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For investment.

Sponsor—Ira

Haupt

&

Co..

'

New York.

Mutual

Investment Trust for Profit

Sharing-

Retirement

Plans, Inc., Richmond, Va.
50,000 shares of capital stock (par $1),
to be*offered trustees Of profit
sharing retirement-plans.
Price—At market. Proceeds—For investment. President
March

19 -filed

.

—T. Coleman Andrews.

Office

—

5001

West Broad

St.,

Richmond, Va.
Mutual

Investors

Corp. of New York

May 17 (letter of notification) 295,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages. Office—550
stock

New York 36, N. Y.

Underwriter

Securities Corp., New York.

—None.

tutional Growth Fund Shares and 850,000 additional In¬
stitutional Foundation Fund Shares. Price—At market.

by

Fifth Ave.,

First Boston

Oil stock held of record Sept. 16, 1957,

shares of

Israel

Boston Corp.,

(9/17)

Aug. 27 filed 1.750,000 shares of capital stock (par $2.50)
to be offered for subscription by stockholders of Con¬
tinental Oil Co. and by holders of ordinary shares of
The Governor and Company of Adventurers of England

Weeks, New York, N. Y.; and Robert
Baltimore, Mel.

Aug. 26 filed 30,000 shares of 6V2% cumulative partici¬
pating preferred stock (par IL 180—$100). Price—$100
per share
(payable in cash or up to certain limits in

vances

(9/17)

Mining Co.

Homestake

&

Garrett & Sons,

Aug

tain

working capital and for development of new
projects in the United States and Canada. Underwriters

crease

—Hornblovver

(9/17)

19, 1957, on the basis of one new

..

Molybdenum Corp. of America
Aug. 14 filed 196,994 shares of common stock (par $1)
and stock purchase warrants to buy an additional 196,994

Mon-O-Co

ceeds—For investment.

Francisco, Calif.

Deane &

supplied by amend¬

International Insurance Investments,

of

20 (letter of notification) 12.000 shares of common
stock (par 810) to be offered to a restricted group of
named individuals.
Price—$12.50 per share (minimum
and

be

Aug. 28 filed (by amendment) 2,000,000 additional shares

Aug

sale 500 shares).

to

Statement withdrawn Jan. 25.

ment.

Underwriter—To be determined

construction program.

Underwriters—Names

ital.

31

.

Stuart

—

\

Nassau Fund, Princeton, N. J.
May 8 filed 250,000 shares of common .stock. Price—At
market.

Proceeds—For

investment.

Office—10

St., Princeton, N. J. Investment Advisor
Hoisington, Inc., same address.

Nassau

Harland W,

—

• National
Cylinder Gas Co. (9/18)
Aug. 28 filed $17,500,000 of subordinated debentures due
Sept. 1, 1977 (convertible on or before Sept. 1, 1967).
Price
To be supplied by amendment. Proceeds
For
—

—

expansion

and

working capital.

Underwriter

—

Merrill

Lynch, Pierce, Fenner & Beane, New York.
it National Distillers & Chemical Corp.
Aug. 29 (letter of notification) an undetermined
ber

of

common

shares with

an

num¬

aggregate market value

of not

exceeding $299,989.37. Price—At market (around
$23.87V2 per share). Proceeds—To stockholders entitled
to

receive

fractional

distribution of 2%
derwriters

share interests

Glore, Forgan &
Dominick, both of New York.
—

National

in

connection

stock dividend payable

Lithium

Co.

and

tion

of

Price—$1.25

a

&

Corp., New York
per

share.

Proceeds—For

(par

one

acquisi¬

properties; for

ment work

of

Un¬

Dominick

Feb. 19 filed 3,120,000 shares of common stock

cent).

with

Oct. 22.

on

ore testing program; for assess¬
the Yellowknife
properties; and for cost

concentration

plant, mining equipment, etc. Under¬
Otis, Inc., New York. Statement ex¬

writer— Gearhart &

pected

to

be amended.

New Haven Water Co., New
Haven, Conn. (9/16)
Aug. 9 filed 60,000 shares of common stock to be offered
for subscription by common stockholders of
record Sept.
16, 1957, on the basis of one new share for each three

shares held.

Price—At par ($50 per share).

To reduce bank loans.

New

Jersev

Proceeds—

Underwriter—None.

B^ll

Telephone Co. (9/11)
Aug. 16 filed $30,000,000 of 36-year debentures due
Sept.
1, 1993. Proceeds — To repay advances from
parent,
American Telephone & Telegraph Co.
Underwriter—
To be determined by competitive
ders: Halsey, Stuart & Co.

bidding. Probable bid¬
Inc.; Kuhn, Loeb & Co.; Mor¬
Stanley & Co.; Shields & Co.; White, Weld &
Co.;
The First Boston Corp.
Bids — To:, be received up to
gan

Volume

11

a.m.

186

Number 5670

(EDT)

New York, N.

on

.*

.

The Commercial and Financial Chronicle

.

Sept. 11 at Room 2315, 195 Broadway,

Y./

Niagara Mohawk Power Corp. (9/16)
'
/
Aug. 27 filed $50,000,000 of general mortgage bonds due
Sept. 1, 1987. Proceeds—To repay bank loans and for
construction

program.

Underwriter—To

be

determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp.; Morgan Stanley &
Co.; Kuhn, Loeb & Co. and Eastman Dillon, Union Secu¬
rities & Co.

to

noon

(jointly). Bids—Expected to be received
(EDT) on Sept. 16.
"

stock.

com¬

Price—At par

(10 cents per share). Pro¬
ceeds—For development of oil and
gas properties. Office
—725. Judge Bldg., Salt Lake
City, Utah. UnderwriterMid America
Securities, Inc. of Utah, Salt Lake City,
Utah.
Old American Life
Co., Seattle, Wash.
July 22 filed 15,825 shares of class A stock (par
$10) and
3,165 shares of common stock (par $10) to be offered in
units of one common share and three class A
shares.
Price—$260 per unit. Proceeds — For working capital
and other corporate
purposes/

Underwriter—None.

Pacific Power & Light Co. (9/18)
Aug. 13 filed $20,000,000 of first mortgage bonds due
Sept. 1, 1987.
Proceeds—To repay bank loans and for
construction program.

Underwriter—To be

determined

by competitive bidding. Probable bidders:
Halsey, Stu¬
Co. Inc.; Eastman
Dillon, Union Securities & Co.
and Kidder,
Peabody & Co. (jointly); Lehman Brothers
and Bear, Stearns & Co.
(jointly); Blyth & Co., Inc. and
White, Weld & Co. (jointly). Bids—Tentatively expected
art &

to be received up to noon

(EDT)

Sept. 18.

on

Pacific Telephone &
Telegraph Co.
July 26 filed 1,822,523 shares of common stock
being
offered for subscription
by stockholders of record Aug.
28, 1957 on the basis of one new share for each six shares
of common stock and/or
preferred stock held; rights to
expire Sept. 30. Price—At par ($100 per
share). Pro¬
ceeds—To repay advahces from
parent. Underwriter—
None.
American
Telephone & Telegraph Co. owns
90.54% of the voting stock of Pacific T. & T. Co.
Co.

(9/12)

Aug. 20 filed S4G,0(T0,000 of first and
refunding mortgage
bonds

due

1987.

Proceeds—To

for

construction program.
mined by competitive

reduce

bank

loans

Underwriter—To

be

and

deter¬

bidding. Probable bidders: Halsey,
Weld & Co.; The First Boston
Corp.; Morgan Stanley & Co. and Drexel & Co.
(jointly).
Stuart & Co. Inc.; White

Bids—To be received
up
1000 Chestnut St.,

to noon (EDT)
Philadelphia 5, Pa.

Prudential

Investment

Aug. 6 filed 750,000 shares
$2.50

per

Corp.
of

of

on

Sept. 12 at

South

Carolina

stock.

common

Price—

share.

Proceeds—For investment and general
corporate purposes. Office —
Columbia, S. C. Under¬
writer—None.

Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock
(par $1)
of which 200,000 shares are to
be offered to public and
20,000 shares issued to underwriter. Price—$5
per share
Proceeds—To retire $125,000 of
outstanding 15% deben¬
tures as well as a $173,180 debt to
Trans-Union Produc¬
tions, Dm; and for working capital. Business—Tele¬
vision releases.

York.

Underwriter—E. L. Aaron & Co., New
Offering—Date indefinite.

•

Quaker State Foods Corp. (9/9-13)
July 29 (letter of notification) 9,154 shares of 7%
lative

cumu¬

convertible

preferred stock. Price—At par ($10
share).
Proceeds
To purchase
machinery and
equipment and for working capital. Office—131 Dahlem
St., Pittsburgh, Pa. Underwriter
Chi Ids, Jeffries &

per

—

—

Thorndike, Inc., Boston, Mass.; and Syle & Co.

of New

York, N. Y.

if Reading Tube Corp. (9/23-27)
Aug. 30 filed 155,014 shares of common stock
(par $1),
of which 120,326 shares are to be
offered for subscrip¬
for each five shares held.
will be reserved against

on

the basis of

The balance

possible

standing preferred stock.

one new

of

of

share

out¬

Price
To be supplied by
Proceeds—To repay bank loans and work¬
—

iotv.82,202jshares.

Regency Fund, Inc., New York
Aug. 15 filed 1,500,000 shares of common

Resource Fund, Inc., New York
March 29 filed 100,000 shares of

(par $1).

Proceeds—For investment.

Under¬

writer—None.

D. John Heyman of New York is Presi¬
Investment Advisor—Resource Fund

Management

Co., Inc., 60 Broadway, New York. N. Y.
(Hal)

Productions

Aug. 8 filed 375,000 shares of
Price—$3

of

shares

1.39

per

share.

(9/23-27)
common

capital;

stock

(par $1).
of

pro¬

working

Business—Produces films for television. Office
—rCulver City, Calif. Underwriter—S. D. Fuller
& Co.,

New York.




of

St.

for

Paul

stock

for each share

of

The offer is eondiitoned upon acceptance

by holders of not less than 240,000 shares (80%) of the
outstanding Western stock. This offer will expire on
Sept. 26, unless extended. Exchange Agent—First Na¬
tional Bank & Trust Co.Scott

&

Helena* Mont.

Co., Cleveland, O. (9/10)
Aug. 15 filed 38,000 shares of common stock (par $5).
Price

selling

To be

supplied by amendment. Proceeds — To
stockholders.
Underwriter — McDonald & Co.,

—

Cleveland, O.
Seminole Oil & Gas Corp.,
June 24 (letter of notification)

Tulsa, Okla.
275,000 shares of com¬
mon stock
(par five cents). Price—75 cents per share.
Proceeds
For development of oil and gas properties.
Underwriter—Albert & Co., Inc., New
York, N. Y.
—

•
Silvray Lighting, Inc. (9/9-10)
Aug. 14 filed 237,039 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds

Estate of M. B. Beck, deceased.
Underwriters—
Auchincloss, Parker & Redpath and Milton D. Blauner
& Co., Inc., both of New York; and Hallowell, Sulz¬
berger & Co., Philadelphia, Pa.
Sire Plan, Inc., New York
July 18 filed $4,000,000 of nine-month 8% fundipg notes.
Price—At par (in denominations of $100 each). Proceeds
•—For

working

capital

Underwriter—Sire Plan

and

other

corporate

purposes.

Portfolios, Inc., New York.

Sperry Rand Corp., New York (9/11)
Aug. 16 filed $110,000,000 of sinking fund debentures due
Sept. 1, 1982 (with common stock purchase warrants).
Price—To be supplied by amendment. Proceeds — For
capital expenditures and working capital. Underwriters
—Lehman
&

Brothers

and

Merrill

Lynch, Pierce, Fenner

Beane, both of New York.

if Springfield

Fire & Marine

Insurance Co.

Aug. 21

(letter of notification) 7,620 shares of capital
stock (par $10) to be offered to employees under a stock
purchase plan. Price — Estimated at $39.50 per share.
Office—1250

Proceeds—None.

Mass.

State

St.,

Springfield

1,

Underwriter—None.

33

to certain employees and

officers. Price—$2 per share*
outstanding obligations to Ogden Corp.

Proceeds—To pay

Underwriter—None.

Tampa Electric Co. (9/5)
Aug. 2 filed $18,000,000 of first mortgage bonds due July
1, 1987. Proceeds—To repay bank loans. Underwriter—•
To be determined by competitive bidding.
Probable
bidders:' Halsey, Stuart & Co. Inc.; Stone & Webster
Securities Corp.; Goldman Sachs & Co.; Merrill Lynch,
Pierce, Fenner & Beane; Kuhn,* Loeb & Co. Bids—To be
received at 90 Broad St., New York, N„ Y., up to 11 a.m.
(EDT) on Sept. 5.
•
Tampa Electric Co. (9/9)
Aug. 2 filed 217,286 shares of common stock (par $7)
to be offered for subscription by common stockholders*
of record Sept. 4, 1957 at the rate of- one new-share for
each 10 shares held (with an oversubscription privilege)rights to expire on Sept. 23, 1957. Price—To be supplied
by amendment. Proceeds—To repay bank loans and for
construction program. Underwriter— Stone & Webster
Securities Corp., New York.

Fetzer

Tax Exempt Bond

Fund, Inc., Washington, D. C.
Price—$25
For investment. Underwriter-

June 20 filed 40,000 shares of common stock.
per

share.

Proceeds

—

Equitable Securities Corp., Nashville, Tenn.

-

Texam Oil

Corp., San Antonio, Texas
May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders
on

a

basis of two

—To

shares for each share held. Price

new

be

supplied by amendment. Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for
other corporate purposes.
Underwriter—None.

Texas Eastern Transmission Corp.
(9/11)
Aug. 22 filed $30,000,000 of first mortgage pipe line bonds
due 1977. Price—To be supplied by amendment.
Pro¬
ceeds— For gas expansion programs and reconversion
program.
Underwriter—Dillon, Read & Co. Inc., New

York.
Texas Eastern Transmission Corp.
July 22 filed 1,000,000 shares of common stock (par $7)
being offered in exchange, on a share-for-share basis,
for capital stock of La Gloria Oil & Gas Co. of Corpus
Christi, Tex. The offer was conditioned upon deposit of
at least 81% (810,000 shares) of outstanding La Gloria
stock prior to Sept. 6, 1957, and it was announced on
Aug. 8 that in excess of this amount had been deposited.
Offer may be extended from time to time but not be¬
yond Dec. 5, 1957. Underwriter—None. Statement ef¬
fective Aug. 6.
Texas Glass Manufacturing Corp., Houston, Tex..
May 28 filed 2,116,292 shares of common stock (par $1).
price—$2 per share. Proceeds—For expansion and work¬
ing capital. Underwriter—T. J. Campbell Investment
Co., Inc., Houston, Texas.
* :• '•
,

if State Loan & Finance Corp. (9/23)
Aug. 30 filed $12,000,000 of sinking fund subordinated
debentures due Sept. 15, 1977
(with class A common
stock purchase warrants attached).
Price—To be sup¬

Proceeds—To redeem debentures
April 1, 1960 and to reduce bank loans and other
indebtedness. Underwriters
Johnston, Lemon & Co.,
Washington, D. C., and Eastman Dillon, Union Securi¬
plied by amendment.
due

—

Texota Oil

Co., Denver, Colo.

$650,000 of convertible debentures due
Price — To be supplied by amendment.
bank loans and for drilling of wells,
acquisition of new properties and payment of rentals
on oil and gas leases.
Underwriter — Piper, Jaffray &
Hopwood, Minneapolis, Minn. Offering—Expected this
Aug. 7 filed
Aug. 1, 1967.

Proceeds—To repay

week.

ties & Co., New York.

Titanic Oil Oo.

Statham

Instruments, Inc. (9/17)
Aug. 27 fried 200,000 shares of common stock (par $1), of
which 100,000 shares are to be sold for account of com¬
pany and 100,000 shares for selling stockholders.
Price
—To be supplied by amendment.
Proceeds—For pur¬
chase of land and construction of plant. Underwriter—
Blyth & Co., Inc., Los Angeles, Calif,
o

Steadman

Fund, Inc. <
May 10 filed 100,000 shares of common stock

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties.
Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—
Wayne Jewell Co., Denver, Colo.

Tripac Engineering Corp.
(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital;
machine-tools; equip-*

Feb. 27

Investment

(par $1)

in connection with merger into this Fund

Fund of

Fortune, Inc., Fortune II, Inc., Fortune III,
IV, Inc. Underwriter — William Allen
Steadman & Co., East Orange, N. J. Statement effective
Inc. and Fortune

common

and proprietary development.
Office — 4932 St.
Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.
ment

Elmo

'

i

July 24.
•

'

Stratford

Strato-Missiles,

Inc.

Film Corp.

(9/9-13)

^atfield propulsion system, and other projects;

for

purchase of additional facilities and for working
capital.
Business—To produce machinery and equip¬
ment.
Office—70 East 45th St., New York, N. Y.
Un¬

Co., Inc., New York.
cumu¬

lative convertible preferred

share.

stock (par $1).
Price—$10
Proceeds—For general operating fund. Office

Bldg., Silver Springs, Md.

Underwriter

—None.

if Supervised Shares, Inc., Des Moines, la.
Sept. 3 filed (by amendment) 300,000 additional shares
of capital stock.
Price—At par. Proceeds—For invest¬

one

Ogden

,

'

«

:

i

'

t

4 i-, r

-

I

1

■

-

*"

\

,

J

»i *

..

\ '

.

•

Turbo

Dynamics Corp.

(letter of notification) 300,000 shares of com¬
mon
stock (par one cent).
Price—$1 per share. Pro¬
ceeds—To
purchase machinery and equipment; pay¬
ment on company plant facility; and for working capital.
Office
Virginia & Truckee Bldg., Carson City, Nev.
Underwriter—Simmons & Co., 40 Exchange Place, New
27

—

York, N. Y.

Offering—Expected this week.
Cambridge, Mass.

(9/17)'

Aug. 23 filed 59,400 shares of common stock (par $1), of
which 34,000 shares are to be sold for account of com¬
pany

To be

and 25,400 shares for selling stockholders. Pricesupplied by amendment. Proceeds—To retire 565

prior preferred shares at $103 per share, plus accrued,
dividends; and for capital expenditures and working cap¬
ital. Underwriter—G. H. Walker & Co., New York.
•

United

Utilities,

Inc.

shares of common stock (par $10)
being offered for subscription by common stockholders
of record Aug. 28. 1957, at the rate of one new share for
each six shares held; rights to expire on Sept. 13, 1957.
Price—$19.25 per share.
Proceeds—For investments m

Aug. 9 filed 312,583

Syntex Corp. (Republic of Panama)
July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholders
of Ogden Corp. on the basis of one new share for each
four shares held and to holders of options on the basis
of

•

UBS Chemical Corp.,

if Suburban Life Insurance Founding Corp.
Aug. 19 (letter of notification) 23,000 shares of 6%
per

Y

July 19 (letter of notification) 100,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For plant and laboratory expansion,
advertising and
working capital. Office—6721 N. E. 4th Ave., Miami, Fla.
Underwriter—Alfred D. Laurence & Co., Miami, Fla.

June

June 7 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To

develop

»

j

Truly Nolen Products, Inc.

(9/9-13)
June 27 (letter of notification) 199,999 shares of com¬
mon stock (par 25 cents).
Price—$1.50 per share. Pro¬
ceeds—For production of films, working capital, etc.
Office—113 West 57th St., New York.
Underwriter —
Joseph Mandell Co., New York.
(John G.)

ment.

Proceeds—For expansion
duction of filmed television
commercials and for
•

rate

Western stock.

—Silver Springs

common stock

**rfee~~At market.

Roach

stock of

derwriter—Kesselman &
stock

(par 10
cents).
Price—At market.
Proceeds—For investment.
Former
Name—Trinity Place Fund, Inc. Office—350 Fifth
Ave., New York, N. Y.

dent.

capital stock (par $6.25)
the outstanding capital
Western Life Insurance Co., Helena, Mont., at

being offered in exchange

34,688 shares

conversion

ing capital.. Underwwriter—For 38,124 shares:
Emanuel,
Deetjen & Co., New York. Certain stockholders have
agreed to', subscribe

'

Paul Fire & Marine Insurance Co.

June 25 filed 417,000 shares of

of

(par one
cent). Price—$5 per share. Proceeds—For exploration
and development of
properties and completion of a ura¬
nium concentrating
pilor mill. Office—295 Madison Ave.,
New York 17, N. Y.
Underwriter—None.

tion by common stockholders

Corp., St. Louis, Mo.

1,250 shares of class C cumulative pre¬

ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter — Yates, Heitner & Woods, St. Louis, Mo.

to be offered

Ramapo Uranium Corp. (New, York)
Aug. 13 filed 125,000 shares of common stock

amendment.

St. Louis Insurance

March 27 filed

—To

•

Philadelphia Electric

Rose Records, Inc.
July 22 (letter of notification) 11,022 shares of common
stock. Price—At par ($1 per share). Proceeds—For work¬
ing capital. Office—705 South Husband St., Stillwater,
Okla. Underwriter—Richard B. Burns Securities Agency,
Stillwater, Okla.

St.

Oil Ventures, Inc.
May 13 (letter of notification) 2,500,000 shares of
mon

up

(1033)

share for each option to purchase four shares of
common

stock; unsubscribed shares to be offered

subsidiary companies.
Co., New

York.

Kidder, Peabody &

Underwriter
'

Continued

on

page

34

t

The Commercial and Financial Chronicle

34

Aluminum Specialty

33

Continued from page
Jr Unified Funds, Inc.,

March 18 it

Indianapolis, Ind.

shares

Uranium Corp. of America,

April 30 filed 1,250,000

Portland, Ore.

shares of common stock (par

10

Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬
bert Griswold of Portland, Ore., is President.
cents).

Utah Power & Light Co.

(9 24)

\

Thursday, September 5,

;

1987.

Underwriter—To be determined by com¬

tion program.

petitive bidding. Probable bidders: Halsey, Stuart &
Inc.; The First Boston Corp., and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬

Co.

ly); Lehman Brothers and Bear, Sterns
White, Weld & Co. and Stone & Webster

& Co. (jointly);

Securities Corp.

Co. Bids—To be received
Sept. 24 in Room 2033, Two Rector

(jointly); Kidder, Peabody &
to noon (EDT) on

up

St., New York, N. Y.

'

Utah Power & Light

400,000

filed

22

Aug.

Co. (9/24)
shares of common

Proceeds—To repay

$12.80).

Underwriter—To be determined by com¬

construction.

Probable bidders: Kidder, Peabody &
& Beane (joint¬
ly); Eastman Dillon, Union Securities & Co. and Smith,
Bamev & Co. (jointly); Lehman Brothers; Blyth & Co.,
Inc. Bids—To be received up to noon (EDT) on Sept. 24
in Room 2033, Two Rector St., New York, N. Y.
petitive bidding.

Merrill Lynch, Pierce, Fenner

Co. and

Co. and The

1957

capital
option

granted on Sept. 25, 1956 to an employee of company.
option is exercisable on and after Sept. 25, 1957.
Price—$42.40 per share.
Proceeds—For general corpo¬

Underwriter—None.

A-Virginia Telephone & Telegraph Co. (9/6)
(letter of notification) 6,756 shares of common
stock (par $10) to be offered to minority stockholders
on
the basis of one share for each eight shares held

Aug. 21

shares will
be purchased by Central Telephone Co., the parent.)
Price—$16 per share. Proceeds—For construction pur¬
poses.
Office—417 West Main St., Charlottesville, Va.
Underwriters—Scott, Horner & Co., Lynchburg, Va.;
as

of

Aug.

(An additional 27,844

1957.

23,

Mason-Hagan, Inc., Richmond, Va. and C. F.
Co., Inc., Charlottesville, Va.
Westcoast

$30,000,000 o£. debentures;
Proceeds—To repay
vances from American Telephone & Telegraph Co.,

Cassell &

the
competitive
bidding. Probable bidders: HaJsey, Stuart & Co. Inc.;,
White, Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
& Co.; The First Boston Corp.; Harriman Ripley & Co.,
Inc. "Offering
Expected late November or early De-,

(10/29)

—

-

City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the directors are giving consideration to the possible
future
issuance
of
debentures which could be
used

Oct. 29.

on

Atlantic

acquire investments producing ordinary
as those with
growth potentials.

largely to

City Electric Co.

come

April 9, Bayard L. England, Preside/it, announced that
later this year the company will probably issue about

Co. Inc.; Kuhn, Loeb & Co., American Securities
and Wood, Struthers & Co. (jointly); White, Weld

as

Nov. 12 it

Illuminating Co.

Electric

reported company plans to issue

was

Corp.
& Co.

To

(jointly); The First Boston Corp. and
(jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.

competitive bidding.
Probable
& Co. Inc.; The First Boston

determined, .by

be

bidders:

Halsey, J3tuart

Blytii & Co,/ inc.; Dillon, Read & Co. Inc.; Blair
Baxter; Williams & Co. (jointly); Glore4

and Shields & Co.

Corp.;

Drexel

& Co. Inc., and

&

Co.

★ Coastal Ship Corp.
Aug. 20 it was reported company

of

Hawaii, Honolulu, Hawaii
Aug. 26 the Bank offered to common stockholders 55,000
additional shares of common stock (par $20) on the basis
of

one

share for each three shares held

new

as

W.'•,'V..;'

;/V /'

Byers (A.M.) Co.
May 7 stockholders approved
class

of

a

•.'

shares).1 Price—At/par.

■■■

Coastal

proposal to authorize a

five shares of $1 par common
other funds, for con¬
Underwriters—Lehman Brothers and

struction prografh.

Allen & Co.. both of New York.

(10/10)

Corp.

Iron

Fuel*&

Colorado

plans to issue and sell
about $40,000,000 first mortgage bonds due 1977 (with
stock purchase warrants). Underwriter'—1 Allen & Co.,
New York. Registration—Expected around -Sept. 20.
Aug. 19 it was reported company

(10/14)

Aug, 13 company applied to the California P. U. Com¬
mission for authority to issue and sell $10,000,000 of first
mortgage bonds due Oct. 1, 1987. Proceeds—To repay
bank loans. Underwriter—To be determined by competir

Columbia Gas

System, Inc.. (10/3)

6, company announced that l it

June

plans the issuance

salq/of $25,00Q,000 debentures later in 1957. Proiceedls-^To help finance 1957 construction program, which
and

bidding^ Probable bidders: Halsey, Stuart & Co. Inc.;

is expgeted to cost approximately $84^000,000.
Underr
writerLrTo be determined by competitive bidding. Prob¬
able bidders: Hfllsey, Stuart & Co. Inc.; Morgan Stanley

Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Blyth & Co., Inc.
and The First Boston Corp. (jointly); White, Weld & Co.
&

Co.; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly). Bids—Expected to be re¬
ceived on Oct. 3*V-V; /•: v

&'

sell 200,000
To repay

tive

both of New York.

writer—Dillon,; Read & Co, Inc., New

pipeline. Underwriter—East¬
Dillon, Union Securities & Co., New York.

if Western Lead Products Co.
Aug. 26 (letter of notification) 187,500 shares of common
stock (par $1). Price — $1.60 per share. Proceeds — To
liquidate obligations accruing in the regular course of
business.1 Office—4530 E. Pacific Way, Los

Angeles, Cal.

Natural

Gas Co.

Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Salomon

Probable
&

ceived
Wall

Hutzler; White, Weld & Co.

up

to

noon

(EDT)

on

Bids—To be

re¬

Sept. 16 at Room 1306, 48

St., New York 5, N. Y.

Wisconsin

Public

Service

Co.

(9/23)
Aug. 27 filed 253,494 shares of common stock (par $10)
to be offered for subscription
by common stockholders
of record Sept. 20, 1957 on the basis of one new share for
each

10

shares

held; rights to expire

Oct. 8, 1957.
Proceeds—To re¬
on

Price—To be supplied by amendment.
duce bank loans and for new construction.
—

The

First

Oregon

shares of common stock (par $20). Proceeds—
bank loans and for construction program. Un¬
derwriters—Blyth & Co., Inc. and The First Boston Corp.,
Central Hudson Gas &

Underwriters

Electric Corp.

was

Underwriter—Probably

April 9 it was reported company plans to issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
loans and for construction program. Underwriter—To be

Boston

Inc. ;

announced company plans to issue and
sell late this year $6,000,000 of first mortgage bonds.
Proceeds
Together with $4,500,000 of 4%% 12-year
convertible debentures placed privately, to be used to
bank loans and for construction program. Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the private
repay

erty and for other corporate purposes.
Teden & Co., Inc., New York.

announced bank plans to offer to its
stockholders the right to subscribe for 1,062,765 addi¬
tional shares of capital stock (par $10) on the basis of
one new share for each five shares held.
Stockholders

Underwriter

—

Prospective Offerings
Aircraft, Inc.
July 9 it was reported
to $12,500,000

company plans to issue and sell
stock, following spin-off by
Aviation, Inc. of its subsidiaries,

Land-Air, Inc. and Air Carrier Service Corp. into Air¬

Inc.,

Podesta &

a

new

company.

Underwriter—Cruttenden,

Co., Chicago, 111.

All States

Freight, Incorporated, Akron, O.

fu^,21 it was announced

company plans to offer public¬

ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
private sale of 425,000 shares of common stock at $4 per
share to pay part of cost of purchase of an
operating car¬
rier

truck

line.

Underwriter—Fulton, Reid & Co., Inc.,

Cleveland, Ohio.




it

22

will vote

on

italization.

Corn

,

Sept. 17

on

Price—To

approving the increase in cap¬
named later.
Proceeds—To

be

capital and surplus.
Underwriters — Kuhn,
Loeb & Co.; The First Boston Corp.; Hemphill, Noyes &
Co., and W. C. Langley & Co. all of New York City.

Commonwealth .Edison

(10/8)

Co.

^

A

offer $25,000,000
to
not yet deter¬
mined);' no-commom stock financing is contemplated.
Proceeds
For construction
program.
Underwriter —
(1) For any preferred stock, may be The First Boston
Corp. and Glore, Forgan & Co. (jointly). (2) For any
bonds,
to
be
determined by competitive bidding.
Probably bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Glore,. Forgan & Co. Bids — Expected to
be

received

on

Oct. 8. "

Connecticut Us^t & Power
,

•

t

'

Exchange Bank

was

increase

common

Eastern

Chemical

Aug.

issue of $5,000,000 series G first mort¬

raise

—

was

an

Co. •
this company plans to

company,.stated that it plans to
$50,000,000 of new, securities (kind

Offering—Expected late in 1957.

placement of
gage bonds.

craft,

-

Probable bidders:
Halsey, Stuart & Co. inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Central Louisiana Electric Co.,

it'was- reported

10

June 25

determined by competitive bidding.

April 8 it

Under¬

$64,000,000 do finance construction on a proposed
refinefy and fof" other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in. units). Un¬
derwriter—Lehman Brothers, New York.

Illinois Public Service Co.

Central

loans.

York.

about

Kidder,

Wycotah Oil & Uranium, Inc., Denver, Colo.
July 29 filed 375,000 shares of common stock (par $1).
Price
$4 per share. Proceeds—For acquisition of prop¬

California

June

this

program.

bank

term

cumula¬

determined later.

Price—To' be
short

publicly

Commerce Oil Refining

announced company plans to issue and
year, probably in the fall, approximately $7,500,000 of sinking fund debentures. Proceeds—To finance
April 22 it

sell

—

Corp. and, Merrill Lynch, Pierce,
Fenner & Beane, both of New
York; Robert W. Baird &
Co., Inc., Milwaukee, Wis.; and William Blair & Co.,
Chicago, 111.

up

fetock;
Proceeds—To ! reduce
preferred

*

Electric Co.

Columbus & Southern Ohio

was

Peabody & Co., New York.

(9/16)

Aug. 22 filed $2,500,000 of first mortgage bonds due 1982.
Proceeds—To repay bank loans and for new construction.

Bros.

Power Co.
anounced company has applied to the
California P. U. Commission for permission to issue and

it

13

construction

Underwriter—None.
Wisconsin

California

Aug.

.

stock); Proceeds—-Together with

,

Shields

>'
v;,

note^ arid

interim

$35

Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General
Tire & Rubber Co. financing.

tive

York.

Transmission Corp.

July 1 it was reported the company plans to offer pub¬
licly about 191,000 -units of securities for about 520,000,*000 (each unit expected to consist of a $25 debenture or

100,000

Oregon Power Co.

Underwriter—Eastman Dillon,

Union Securities & Co., New

shares of cumulative preference
(par $100) and to increase the authorized out¬
standing indebtedness to $15,000,000, in connection with
its proposed recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956. Underwriter—Dillon, Read & Co.,

California

>

plans early registration

of $6,000,000 6%. debentures due 196$ (each $100 princi-r
pal amount wjtji entrants to purchase one Coastal Ship
common share and two McLean Industries, Inc. common

of Aug.

22; rights to expire on Sept. 26. Price—$37.50 per share.
Proceeds—To increase capital and surplus. Underwriter
—None.

White, Weld & Co.

Forgan & Co.;

ceeds—For construction of
man

filed

and sell

$25,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program. Underwriter—-

July 22 company announced it is planning to sell
in October an issue of $8,000,000 par amount of

13

in-,

well

Cleveland

$5,000,000 of convertible debentures. Proceeds—For con¬
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Bids—Expected to be received on Oct. 14.

Transmission

4

cember.

expansion of system. Underwriter—To
be determined by competitive bidding. Probable bidders:
Morgan Stanley & Co.; The First Boston Corp. and Hal¬
sey, Stuart & Co. Inc. (jointly).
Bids—Expected to be
and

provement

Co., Ltd. (9/10)
$25,000,000 of subordinated debentures
6eries C. due April 1, 1988 (convertible until July 15,
1978).
Price — To be supplied by amendment. Pro¬

Aug.

ad¬

Underwriter—To be determined by

parent.

stock

The

rate purposes.

Telegraph Co.

of Md.
issue and

sell

of $1.20

American Telephone &

new

if Vanadium Corp. of America
Aug. 30 (letter of notification) 185 shares of
stock (par $1.) to be issued upon exercise of an

(

July 17 it was announced that company plans to issue
and sell $250,000,000 of debentures to be dated Nov. 1,
1957 and to mature on Nov. 1, 1983. Proceeds—For im¬

Bank

stock (par
bank loans and for new

Chesapeake & Potomac Telephone Co.
July 30 it was announced company plans to

i
\
plans to issue and

cumulative convertible pre¬
series A (par $20). Underwriters—Emch &
Marshall Co., both of Milwaukee, Wis.

ferred stock

opened

22 filed $15,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for construc¬

Aug.

Co.

announced company

was

15,000 shares

sell

Aug. 28 filed (by amendment) 270,000 additional
of common stock (par $2). Price—At market.
Proceeds
.—For investment.

•

.

(1031)

Co.

•

plans to sell not lest
than $20,000,000 of, first mortgage bonds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.
Consolidated Edison Co. of New York, Inc.
Feb.

18, it was reported company

'V
"Y
Financial Vice-President, on July 8
has tentatively decided to
issue and sell $50,000,000 of first and refunding mortgage
bonds (probably with a 30-year maturity).
This may
(10/22)

-

,

Charles B. Delafield,
announced that the

be increased to

ditions.

company

market con¬
and bank loans, to

$60,000,000, depending upon

Proceeds—From this issue

^

part of the cost of the company's 1957
program which is expected to total about

pay

construction
$146,000,000.

tion of

competitive bidding.
Morgan
Stanley & Co.; The First Boston Corp. Bids—Tentatively
scheduled to be received up to 11 a.m. (EDT) on Oct. 22.

$10 of bonds will carry a warrant to purchase one-share
of common stock. Underwriter — Van Alstyne, Noel &

July 9 it was announced that .the company plans, in addi¬
tion to the bond financing. t<5 offer to its common stock¬

CO., New York.

holders the

Chesapeake & Ohio Ry.
Bids are expected to be received by the company in
October for the purchase from it of $4,500,000 equip¬
ment trust certificates. Probable bidders: Halsey, Stuart

debentures maturing

Chesapeake
June

3

it

was

Probable

Industries, Inc.
reported

company

plans early registra¬

$3,500,000 of 5V2% collateral trust sinking fund
bonds due 1972 and 350,000 shares of common stock. Each

& Co.

Underwriter—To b'ei determined by

Inc.; Salomon Bros. & Hutzler.

•

bidders:

Consumers

the

basis

stock held
Proceeds

Halsey,

Power Co.

Stuart

& Co. Inc.;

(10/16)

right to subscribe for $35,156,760 convertible
not earlier than Sept. 1, 1972, on

of
as
—

$100

of

each 25 shares of
rights to expire on Nov._l.

debentures for

of Oct. 16, 1957;
For

construction

program.

Morgan Stanley & Co., New York.

Underwriter-—

Cook Electric Co.

of

July 15 it was reported that company is planning some
equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111.
Eastern Gas & Fuel Associates

termined

by

Underwriter—For

bonds to fctfc de¬

any

bidding./ Probable^

competitive

.

April 15 it
and

sell

announced

was

$3,750,000

Proceeds

of

company

25-year

proposes

collateral

to

trust

issue

For advances to Blackstone Valley Gas &
Co., a subsidiary. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
—

sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬

'General Tire & Rubber Co.
was.

(9/17)

reported that this/ company is considering

issue
of 812,000,000 "convertible 15Subordinated
de¬
bentures (with stock purchase warrants attached). Pro¬
ceeds—For working capital. Underwriter—Kidder, Pea¬

an

body & CdV,*New York. Registration—Expected late in
August. :■
Gulf

Interstate,Gas

May 3 it

Co.

;

announced company plans to; issue

was

common

some

additional first mortgage bonds, the ajnount of which haa
not yet

Under¬

Merrill Lynch,
Pierce, Fenner & Beane and
Kidder, Peabody & Co., both of New York.
Offering—
Expected in November.
—

Mangel Stores Corp.
June

19

it

was

expected

of
due

New

reported early registration statement is
issue of $3,000,000 of convertible de¬

an

1972.

Underwriter—Lee Higginson

Corp.,

York.

Merrimack-Essex Electric Co. (11/6)
21 it was announced that this company plans to
issue and sell $20,000,000 of first
mortgage bonds, series
B, due 1987.
Proceeds—For acquisition of properties<•

Aug.

and

construction

Underwriter—To

program.

be

de¬

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Salomon
Bros. & Hutzler; Eastman
Dillon, Union Securities & Co.
and Wood, Struthers & Co.
(jointly); Lehman Brothers;
The First Boston

Corp.; Equitable Securities Corp.; Mer¬
Lynch, Pierce, Fenner & Beane; Kidder, Peabody
and White, Weld & Co.
(jointly). * Bids—To be

rill

&

opened

Nov. 6.

on

Proceeds—About $19,000,000, for investment in common
of the System
operating companies during the
three-year period 1957, 1958 and 1959. Underwriterstocks

Previous

-Hathaway
June 24 it

to, its

(C. F.)

was

common

Co., Waterville,

Me.

stock.

Underwriter—Probably H. M. Payson & Co., Port¬
land, Me._
*V v:-t; '
4'
:

Houston Lighting & Power Co.
13 it was reported company may

Fe"b.

offer late this
Fall approximately $25,000,000 first mortgage, bonds, but
exact amount, timing, etc. has not yetvbeen determined.
Underwriter—To be determined by competitive

bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Lehman Brothers,
Eastman Dillon,
Union

Securities

&

Co.

and

Salomon

Bros.

&

Hutzler

(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
Idaho

Power

May 20 it

program

der, Peabody & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill
Lyncl^ Pierce, Fenner &
and Stone

Webster

&

Securities

Corp.

(jointly).

•

Mystic Valley Gas Co. (11/18)
Aug. 21 it was announced company plans to issue and
sell $3,500,000 first mortgage
bonds, series B, due 1977.
Proceeds—To repay bank loans and for construction
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsdy, Stuart & Co.

tive

between

$10,000,000

to $15,000,000
Underwriter—To be

first mortgage bonds after Nov. 1,
determined by competitive biddings probable

bidders:

White,

Weld

Kidder, Peabody
First Boston Corp.; Blair & Co.

(jointly); The
porated; Lehman
Nov.

Co.. and

&

Brothers.

Bids—To

be

&

Co.

opened

on

18.

Indiana & Michigan Electric Co.
(12/10)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds

&

reduction

of

bank

loans

and

for

construction

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley & Co. Inc.; The First Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST;
program.

tive

on

Aug. 5 it

V

announced company plans to

•

new

Lawrence

Aug.

21

it

sell

and

1977.
bank

money

Gas

was

Co.

this

year

the

plans to

issue

$2,000,000 first mortgage bonds, series A, due

Proceeds—For construction program and to repay
loans.
Underwriter—To be determined by com¬

bidding. Probable bidders; Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Kidder, Peabody & Co.
and White, Weld & Co. (jointly).
Bids—To be opened
Nov. 18.

Long Island Lighting Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J.
Proceeds—To refund
Jan. 1,
—^To

$12,000,000

of series C

1958 and for construction program.

be

determined

by

bonds

due

Underwriter

competitive

bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).

•
Long Island Trust Co. (9/11)
Aug. 26 it was announced company plans to offer to its
stockholders of record Aug. 30, 1957,/ the right to sub¬
scribe for 26,320 additional shares of capital stock on the

basis of
td

To

share for each seven shares held; rights
Sept. 27. Price—$32 pef share. Proceeds—
capital and surplus.
Underwriter—A. M.

one new

expire

on

increase

Kidder & Co.,
,

Louisville

Bids

are

New York.
&

Nashville

RR.

expected to be received by the company

time in the Fall for the purchase from




some

it of $14,400,000

Salomon

Norfolk & Western
Bids

Bros.

&

Hutzler

Ry.

(9/19)

expected to be received by the company up to

are

(EDT) >on Sept. 19 for the purchase from it of
$4,260,000 equipment trust certificates.
Probable bid¬
noon

ders:
•

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Northern

29
the

Illinois

this

$8,000,000

and

has been made
but

no

stock

For

repayment of bank loans and new construction.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; The First
Corp.; Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; Kid¬
der, Peabody & Co.; Kuhn, Loeb & Co. Bids—Tentative¬
ly expected to be received on Oct. 16.

Boston

and Dean Witter & Co.

Permian

Basin

it

20

Pipe Line Co.

announced

was

company, a subsidiary of
Co., may issue about $25,300,000
securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and
$6,600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from
parent, and the remaining $16,000,000
Northern Natural Gas
of

new

for

construction.

new

Co., New York.
•

Public

Underwriter

—

Glore, Forgan &

'

Service Co. of

Indiana, Inc.

9

at

was announced that company planned to sell
series of $30,000,000 first
mortgage bonds on Oct.

new

competitive bidding.

On Aug. 29 these plans

were

cancelled and company sought approval of Indiana P. S.'
Commission to place $35,000,000 of 4%% bonds

privately.

Proceeds—To repay bank loans and for
"

Public

Aug.

Service

it

1

Electric

announced

was

sell in the Fall of 1957

stock

or

&

Gas

new

construction.

Co.

anticipates it will
$25,000,000 of preferred

company

in 1958

(in addition to $60,000,000 of bond now registered
SEC).
Proceeds—For construction program.

with

the

Underwriter—May be Merrill Lynch, Pierce, Fenner &
Beane, New York.
it Ryder System,
Aug. 28 it

was

in the Fall
stock.

an

Inc.

announced company plans to sell publicly
additional 200,000 shares of its common

Proceeds—For expansion program.

Underwriter—-

Blyth & Co., Inc., New York..
Louis County National Bank

St.

Aug. 2 it

(9/10)

announced Bank plans to offer to its stock¬

was

of

announced that it has deferred
1958 its plan to raise between

$10,000,000
as

early this

Probable

being given to sale of

be

decision

common

common

Pro¬

stock.

program.
Underwriter — For
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Glore, Forgan & Co.; Blyth & Co., Inc.

be

Indiana

was

Public

Service

loans

and for

determined

Co.

(9/23-24)

reported company plans to issue and sell

$20,000,000 of first mortgage bonds.
bank

No

bidders:

Corp.;

Aug. 6 it

fall.

to the form of the proposed financing,

construction

bonds, to

new

Proceeds—To

construction.

repay

Underwriter—To

competitive bidding.

by

Probable

bid¬

ders:

Halsey, Stuart & Co. Inc.; Lehman Brothers and
Bear, Stearns & Co. (jointly); White, Weld & Co.; Equi¬
table Securities Corp.; The First Boston Corp.; Eastman
Dillon, Union Securities & Co.; Central Republic Co.
Inc., Blyth & Co. Inc., and Merrill Lynch, Pierce, Fenner &
Beane

(jointly); Harriman Ripley & Co. Inc. Bids—Ten¬
tatively expected to be received on Sept. 23 or Sept. 24.
it Occidental Life

Insurance Co. of California
Aug. 21 the Federal Reserve Board ordered Transamerica
Corp. to dispose of its stock holdings in this insurance
company on
or
before May 9, 1958.
Underwriters—
Probably Blyth & Co., Inc. and Dean Witter & Co., both
of Los Angeles and San Francisco, Calif.
•

Ohio

Power Co.

Sept. 2 it
issue

and

was

sell

company now

plans to

$25,000,000

bank loans. Underwriter—To be
determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.;
Eastman Dillon, Union Securities & Co. and Salomon

&

Hutzler

ceived up to

(jointly).

11 a.m. (EST)

Bids—Expected
on

the

basis

of

one

new

of

share

• San
Diego Gas & Electric Co. (10/31)
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth

&

Co., Inc., San Francisco, Calif.

it San Diego Gas & Electric Co. (11/7)
Aug. 27 it was reported company plans to issue and
sell $12,000,000 first mortgage bonds due 1987. Proceeds
—To repay bank loans and for new construction.
Un¬
derwriter—To

be

bidders:

determined

competitive bidding.
Co. Inc.; Blyth &
& Hutzler; Lehman Brothers;

Halsey,

Co., Inc.;

by

Stuart

&

Salomon Bros.
Corp.; White, Weld & Co. and Shields
(jointly); Eastman Dillon, Union Securities &
Co.; Kuhn, Loeb & Co. Bids—Expected to be received
The First Boston
&

Co.

up

to

(EST)

noon

on

Nov. 7.

it Shamrock Oil & Gas Corp.
Sept. 2 it was reported company plans offering in midOctober

of

$17,000,000 convertible debentures.

writer—The First Boston Corp., New York.

Under¬
.'

„

■

Siegler Corp.
June

it

25

was

announced

company

plans to issue and

sell in September or October of this year a maximum of

200,000 additional shares of common stock. Underwriter
—William R. Staats & Co., Los Angeles, Calif.

Smith-Corona, Inc.
Aug. 1 it was announced stockholders on Sept. 30 will
vote on approving an offering to stockholders of approxi¬
mately $5,000,000 convertible debentures. Proceeds—For
expansion and to reduce bank loans. Underwriter—rLehman Brothers, New York.
South Carolina Electric & Gas Co.
Jan. 14 it

was

reported company plans to issue and-sell

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Dillon, Union Securities & Co. Bids—Not ex¬
pected to be received until next Fall.

Eastman

it Southern New England Telephone Co.

(11/19)

reported that this

of first mortgage bonds due
1987 and has abandoned proposal to sell 70,000 shares
of $100 par value preferred stock.
Proceeds—To repay

Bros.

1957 the right to subscribe for
capital stock (par $10) on
for each 5% shares held;
rights to expire oil or about Sept. 30,1957. "Underwriter
—G. H. Walker & Co., St. Louis, Mo.
additional shares

30,000

Probable

Co.

securities convertible into

or

Boston

half

consideration is

ceeds— For
any

Gas

company

first

Northern

company

petitive

on

Co.

Boston

(11/18)

announced

and

(jointly);
©illon, Union Securities & Co. and White, Weld
(jointly); Equitable Securities Corp.; The First
Corp.; Merrill Lynch. Pierce. Fenner & Beane.

Aug.

*

.

raise up to
through sale of new
securities. Proceeds—To repay bank loans and for con¬
struction program.
Underwriter—For bonds, to be de¬
termined by competitive bidding. Prqbable bidders: Hal¬
sey, Stuart & Co. Inc.; Lehman Brothers, Merrill Lynch,
Pierce, Fenner & Beane and Reinholdt & Gardner (joint¬
ly).
was

$11,700,000

Brothers

man

Eastman

until

Dec. 10.
Laclede Gas Co.

Underwriter—

holders of record Sept. 9,
New Jersey Power & Light Co.
Sept. 12, 1956, it was announced company plans to issue,
and sell $5,000,000 of first mortgage bonds. Underwriter—
To be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬

—For

debentures.

Pennsylvania Power Co. (10/16)
Aug. 5 it was reported company plans to issue and sell
$8,000,000 of first mortgage bonds due 1987. Proceeds—

Incor¬

(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston Corp.
(jointly); Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody &
Co.; Blyth
& Co., Inc., and Lazard Freres & Co/ (jointly).
& Hutzler and

convertible

Pennsylvania Electric Co.
Sept. 12, 1956 it was announced company plans to issue
and sell $6,000,0Q0 of first
mortgage bonds. Underwriter
—To be determined by
competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman
Dillon, Union Securities &
Co. and White, Weld & Co.
(jointly); Equitable Securi¬
ties Corp.; The First Boston
Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.

a

and to reduce bank loans.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬

Beane

of

Blyth & Co., Inc., New York and San Francisco.

July 29 it

reported company may issue and sell in
$20,000,000 of debt securities. Proceeds—

construction

Inc.;

was reported company plans to issue and sell
200,000 to 225,000 shares of common stock in the

to

without

program.

Co.

addition

wa^

the fall about
For

around

in

f

Montana Power Co.

May 16 it
Fall

stock

offering was to stockholders,
underwriting, with oversubscription privileges.

announced company plpns soon to offer
stockholders some additional common

/

May

^.

Middle South Utilities, Inc.
May 8 it was announced company may consider an offer¬
ing of new common stock within the next year or so.

and Merrill

issue

new

Co.

been determined! Proceeds -4 For construction
program.
Underwriters—Carl M. Loeb, Rhoades & Co

Lynch, Pierce, Fenner & Beane.

it Otter Tail Power Co.
Aug. 29 it was announced company plans to offer to its
common stockholders the
privilege of subscribing for a

plans to issue
stock.

termined

Corp. and Estabrook & Co. (jpintly)..'

Aug. 6 it

company

bonds.

Electric

curities

writers

bentures

S.¬

-

,

publicly 50,000 shares of

bidders;

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co.
(jointly).
Eastern Utilities Associates

★ Maine Public Service Co.
Aug. 27 it was announced that
and sell

April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years.

equipment trust certificates. Probable bidders: Hal¬
Stuart & Co. Inc.; Salomon Bros. & Hufzler.

sey,

Nov. 19.

to

be

re¬

Aug. 26 the Connecticut P. U. Commission

authorized the

sell to its stockholders^ 679,012
capital stock (par $25) on a
l-for-8 basis.
Price—To be fixed by company.
Under¬
writer—None.
Warrants to American Telephone & Tel¬
company

additional

to

issue

shares

and

of

its

be sold at competitive bidding.
Probable
Blyth & Co., Inc.; The First Boston Corp.;
White, Weld & Co.; Salomon Bros. & Hutzler; Putnam &
Co., Chas. W. Scranton & Co. and Cooley & Co. (jointly).
egraph

may

bidders:

Continued

on

page

36

The Commercial and Financial Chronicle

at 165 Broadway,
(EDT) on Sept. 5 for the

Bids will be received by the company
New York, N. Y., up to noon

construction

For

it

Aug. 21
sell

announced

was

1987.

tion

Halsey, Stuart &
White, Weld & Co.
(jointly); Blair & Co. Incorporated. Bids—To be opened
Dec.

on

11.

Associates

well

do

would

deals

to

its

Our

in

mands

the

of

way

return

Negotiated Deals
the week's largest
including the larg¬
est, Sperry Rand Corp.'s $110 mil¬

Several

of

undertakings,

Report

with

debentures

of

lion

get

to

away

flying

a

that

total of

a

less than

no

to

first

attract the

With

stockholders.

to

this

formidable

offerings due

Retrospect and Prospect" | Chron¬
icle,
Aug.
29
issuej
by
Mr.
Frederick G. Shull, proposes to

must have been

of its bonds

million

impressed by last

The

week's, developments,
now

Public

that

appears

bonds

Service Electric & Ga&Co.'s offer-

ing, brought out

on

on

&interested,/

it
was ! indicated,
4.85% yield basis.

But

tire

sluggish

the

reception

Pegs

ac¬

which

•ielp Southern California Edison's

are

bank

two

offering, also rated Double A, and
brought to market with a yield of

are

4.80%.

common

It

appears

company's

standing
therefore

a

bit

are

offerings. Long Is¬

Co.

conditions:

will

lars would
h

it appears,
will not
week's, experience as

attrac¬

E."

Dr.

Gutmann

R.

b

o-

e

five

1934

lars

(the of¬

dol¬

ficial definition of the Gold Stand¬

As the value of the

ard).

in

unit

tary

1934

was

mone¬

(100

par

the

and is in 1957—50 cents—
units are not equal, they are

at variance.

the volume of

piled

up,

extends

buyers

of

well

last

As this discrepancy of 50%

an

established fact—a return to

the

(Spocial to The Financial Chronicle)

and

the

busy

could

on

past

It would be

of the contrary—a

patibility.

We

declaration

full

of

of

good

the

ance

folio
other

circumstances,
conclusion

men

for

pension

fiduciary

So,

as

the

and

Street

over

done.

see

because

not

are

assertion

an

logical incom¬
that a simple

intent

return-

to

intentions

that

as

staff

B.

Scbau

has

joined

is

a

the

of

Roney & Co.

will

it, under¬
writers who intend to compete for
next
week's
several
competitive

DURHAM,
Sutorius
J.
t

Lee

is

N.
now

Peeler

&

Trust,Building.
i

l

measures

i

' f.

C.—Seymour
connected

*

A.

with

Company, Inc.,
,,

i-e

are

that

by

to

the

or

A

of:

proportion

Standard would therefore have

chance to
ot

the

run

de

100—35:35

1934,

we

are

100:

faced
pro¬

The above equation demon¬
that

rent

or

into

five

thirty

1957

five

cur¬

1934

cbnstant dollars —at par —be¬

cause

thirty five 1957 dollars

are

Only equal to seventeen fifty 1934

magic

and

in

re¬

numbers

muddle through either
declaration of intent or

we can

a mere

ERNEST

GUTMANN

R.

Halsey, Stuart Offers
57/8% Utility Bonds
Halsey,

to

if

the

it

(Sept.

one

Stuart

successful

4)

Co.

&

bidder

for

Inc.

was"

yesterday

Service

<

North¬

$1,500,000

Public

western

Co.

first

mortgage bonds, due 1987, naming

price

of

coupon.

It

a

"/

Redeemability could also not be
to
use
for many highly

hohds

turned

100.75% for a 5%%
is expected that the

will

•.

be

r e o

ff

e r e

at

d

101.777% and accrued interest, to

technical reasons—which I gave in

yield; approximately 5.75%.
' - ; previous articles in >v proceeds from, the- sale of the !
The present rela-,
bonds are to be- used to repay a '
lionshipr between Gold; Stock and bank loan incurred? in the eonx*
legally required,coverage ocv the?
pany'S censtructioa progra m.
( one hand, and domestic plus; inter¬
b^Northwestern,
PublicService
detail
the

six

in

Chronicle.

.

-

national withdrawal potentials on
Circulation impractical.,./ ;-

.

The figure; of 266>

(5)

;

Go.

other -would render Goldcoin

die

is., engaged principally
in *
furnishing electricity arrd gas. in
in
three-cities' m. northern; Nebraska.".
eastern" South Dakota and: gas

equations
given
above
under Cities served byf the company in- s.
points 3 and 4 stems from the elude Aberdeen and Huron, South
Price

Consumer-

B.L.S.
as

Index

1935

in 1957, taking
=

1939

to

no

hold

to

der

standard.

(6)

to

Such

same

the

old

procedure is called
means that exactly

a

It

amount of dehydration—-

become

free

of

water

—

would

have to be applied to compensate
for the

tion
took
It

exact

magnitude of infla¬
already

or
dilution, which
place in the past.

is

method

a

(Special to The Financial Chronicle)

KANSAS

which

cures

the

disease by killing the patient.
It is hardly a way which could

Mr; Hamilton was previ¬

change.

ously

Dayton,

-

■

(Special te The

vol¬ with Fahnestock & Co./435 South

.>

and

technological interpretation'of the
quantity theory of money can not
bring a final solution of this prob¬
lem, the merchanistic proclama¬
tion

of

the

old

standard

can

not

The

attempt to do

regrettable

form and

Super
money

Salle

so

would be

misconception

of

Rogers

was

Co.

and

Bache

with

&

With Bennett, Gladstone
CSpecial to The Financial Chronicle)

C a I i f
Fitzgerald and How¬
ard F. Werner have become asso¬
LOS

ciated

ANGELES,
H.

with

Bennett-Gladstone-

Manning Company/ 8417

content.'
mcney

Street., Mr.

Fairman, Harris & Co., Inc.

Michael

restore quality.

a

Financial-Chronicle)

CHICAG'6, 111.—Joint a. Rod¬
gers,
Jr., has, beeome</associated

formerly

?

,

mechanical

the

as

and

will have to

in

/

Rodgers .With Fahnestock

La

Just

Lack!

&

Greene
Ohio.

with

untarily for obvious political and
,

become asso¬
Fitch. North &

Co., 1006 Baltimore Avenue, mem¬
bers of the Midwest Stock Ex¬

social

reasons.

Mo. —Gordon;

CITY,

H. Hamilton, Jr. has

ciated with Barret,

1

"Deflation."
the

sustain

and

and

Island

Grand

Platte, Nebraska. ;//

With Barret; Fitch

all the way
the point of depar¬
parts lacking in or¬

100,

and

Dakota,
North

average

This magnitude of

(100).

par

which

Index

?

stands at 200 today

variable dollars cannot'be

or

reconverted

thirty

no

Street, Room 1603-4
New York 4, N. Y.
Aug. 28, 1957.
■

200:100=70:35

would fill the bill.

true to type. Instead

jure proportion of
in

no

is

organic link—and nqt an in¬

DR.

size

same

fixed

60 Broad

have

—

will be able

we

any

Standard.

by inertial navigation.

be expected to be undertaken

strates

(Special to The Financial Chronicle) '

be

drastic

(3) A 1957 dollar under the 1934

(4)

Joins J. Lee Peeler

the field.

More

today in 1957 by the de facto
portion of 200boo=35:17V2.

port¬
and

for

enough—to com¬
the damage already

required.

KALAMAZOO, Mich. — Mar¬
garet

sees




Watling, Lerchen

insur¬

funds

groups

sitting back to look

it

that

buyers

company

pensate

Watling, Lerchen & Co.,
ensuing Commerce
Building. Miss Schau
was
previously
with
Wm.
C.

the

have

size

to

up

dependent force—gives the doubt
to people who complacently think

would have to pay double for it.

the old 100%

function

not

magnitudes involved

uniform.

(Special to The Financial Chronicle)

of

calendar

week.

In

forth¬

offerings which has

well

foregone

With

aware

the

ture with

(2)

basis

Allyn

unproduc¬

Command

are

would

It

hall

—

should

would be—is not

Prospective
coming issues

1'dte.

same

have

offer

but moneys nature as a function—>
and

five 1957 dollars would encounter

is

FLINT, Mich.—Robert A. Green
tive if it has the effect of
making' Jr. has
joined the staff of A; C.
for "realism" in bidding for com¬
Allyn and Company, Incorporated,
petitive issues which are up next
Genesee Bank Building.
week.
Buyers in

There

of thirty

price

back

With A. C.

to

to its stockholders.

Co., Milwaukee, Wis.

return

200 would have to go

observers,
count

d

a v e

equal to thirty

the old Standard

market

dol¬

1957

the

at

the

on

tive.

Experienced

:

(I)- Thirty

five

plans

common stock

A Gold Coin brought into

dollars.

cents)

shares

Co., Inc.

company

Milwaukee

we

day.

and

more

Trust

reported

Underwriter—The

sell 26,320
Tuesday and
St. Louis County National Bank
will offer 30,000 shares the same

out¬

volume

less

were

land

that the latter

obligations
in

the
equity
offerings
spotted for the week

Among

dW," however,

under

r^,the ...following

*,

phia Electric Co., opens bids for
$40 million of bonds.

was

article by Frederick G. Shull

is

which
only

work

million
market
by
"

This

mmenda-

tion,

$25

'

Id

would:

...

at least / temporarily. ProapectiYe";buyers would have been

corded

c o

Wednesday, New Jersey Bell
Telephone will sell' $36 million of
debentures via competitive bid-/
ding and on Thursday, Philadel¬

the mar?

ket,

around a.

reach

to

o

deserving

a

bids for $50

negotiated offering.

4.81% yield

a

/ basis, put the damper

due

the

basis.

already
will see

on

Ltd; has

Co.

Standard

on

Tuesday.
Westcoastr Trans¬

day

same

mission

It

week

next

Duke Power Co. open

securities

new

Issues

In addition to the issues

mentioned,

the rank and file of underwriters
and distributors of

Impending

old

the

to

return
'

of

array

the market,

on

Gold Standard:

The article "The

will

buyer.

Other

it

$300,000 of additional

circulation

Chronicle:

bring

market

tlieni in accordance with
prevailing conditions.
In
other
words, to afford yields that will

of¬

Editor, Commercial and Financial

;

fered

trew

be

will

and

to

the

price

these, for Lehigh
Portland Cement Co., is of really
substantial
proportions,
380,312
shares

that

slated

are

offerings

these

But only one of

common

cinch

a

who

bankers

for market.

up

$30

it's

And

schedule for that period.
In
addition there are several

on

equity issues lined

Transmission

million oi: Lehigh
Portland Cement Co. debentures,
not to mention $30 million King¬
dom of Belgium bonds.

debt issues is

new

Eastern

and

bonds

busy, if not record, Fall season.
Scanning the calendar, it now ap¬
$345 million of

Texas

lion

a

pears

includes $30 mil¬

This list also

start

what promises to be

on

8

will be able to return to
any fixed and redeemable standard."
Dr. Gutmann contends
redeemability with a $70.00 gold ounce, unlike $35.00, would
not require deflation, kill the patient, nor run
counter to
political and social considerations.
of gold "before

monetary value

negotiated route.

next week

July

(Chronicle, Aug. 29) with assertion that price inflation since
1934 to date requires corresponding upward change in the

stock

;

Co.

dated first, before

Contributors rebut gold standard

warrants, will be handled via the
The corporate new issue market

&

Wisconsin Southern Gas

-

Opposes Fixity in Price
Of Monetary Gold

on

and to repay

(jointly); Dean Witter & Co.; Lehman Brothers; White,
Weld

deemable

his funds.

Reporter's

Proceeds—For construction program

Underwriters—To be determined by compet- j
bidding. Probable bidders: Halsey, Stuart & Co. /
Inc.; Kidder, Peabody & Co.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.

to

sights accordingly, that is with a
view
to
what the
investor de¬

plans to issue and
bonds late in

mortgage

bank loans.

stockholders oi

to common

first

of

TO THE EDITOR:

LETTER

their

set

and

parent)

$7,000,000

.

itive

April 15 it was also announced Blackstone plans to offei
to its common stockholders (other than Eastern Utilities

Price—Expected to be be¬

(par $10).

preferred stock

about

*

Co.

Aug. 27 it was announced company
sell

'

.

Service

Public

Wisconsin

three

to dispose by negotiated sale the first
securities mentioned in this paragraph.

new

Superior Tool & Die Co.
July 26 it was announced company plans to issue and
sell
150,000 shares of 70-cent cumulative convertible

will

both of New York.

proposes

'

Webber, Jackson & Curtis and Blair & Co. Incorporated,

it was announced company, a subsidiary oi
Blackstone Valley Gas & Electric Co., plans to issue
within one year, $4,000,000 of bonds, $1,100,000 of note*
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn

petitive bidding.
Probable bidders:
Co. Inc.; Kidder, Peabody & Co. and

reported company plans to sell an issue
convertible subordinated deben¬
—•
To finance plant expansion and in¬
working capital. Underwriters — May be Paine,
was

Proceeds

crease

$2.50).

15

April

Underwriter—To be determined by com¬

program.

sale in

/

'■*

than $5,000,000

more

tures.

Valley Gas Co.

of first mortgage bonds, series B, due
Proceeds—To repay bank loans and for construc¬

Hutzler; Eastman Dillon, Union Secu¬

Co.; Stone & Webster Securities Corn.: White,
Bids—Expected to be received on Dec. 3.

Walworth Co.

of

;

'

& Co.

1957.

plans to issue and

company

&

Weld

working capital.

$4,500,000

-'
plans to sell $20,-

first mortgage bonds.- Probable bidders for
include: Halsey, Stuart & Co. Inc.; KUhn,
Co. and American Securities Corp.
(jointly);

rities &

plans a public offer¬
securities to provide about $6,700,000 of new

of

ing

\

/

(12/3)-

company

may

Loeb

of California

Transocean Corp.

announced

was

Salomon Bros. &

May 21 it was announced company

(12/11)

Co.

Electric

Suburban

bonds

Underwriter—Cruttenden, Podcsta & Co., Chicago, III.

bidders: Halsey, Stuart & Co, Inc.;
Bids — Tentatively expected to

Probable

.

000,000 of

s

Aug. 12 it was reported company plans issue and
October of 40,000 shares of common stock (par

Morgan Stanley & Co.
be received on Oct. 1.

it

8

Aug. 6 it

Los Angeles, Calif.

Lines,

Transcon

Co. (10/1)
May 24 directors approved the issuance of $100,000,000
new
debentures.
Proceeds — For expansion program.
Underwriter—To be determined by
competitive bid¬
ding.

March

'

10.

New York.

$2,500,000 ..of common stock of Valley
receive/ as pari; payment of certain

is to

...

Bids—Tentatively expected to be received on Oct.

Corp.

Underwriter—May be Blair

program.

it

Co.,

Virginia Electric & Power Co.

RR. (10/10)
reported company plans to issue and sell
$6,000,000 of first mortgage bonds. Proceeds—To refund
like amount of bonds maturing on Nov. 1, 1957. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston

Southwestern Bell Telephone

;

Thursday, September 5, 1957

properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.
'
'
vi

Toledo Terminal

Southern Union Gas Co.

-

..

Blackstone

Aug. 12 it was

May 16 it was reported company plans to issue and sell
about $10,000,000 of debentures this summer. Proceeds—

the

latter

Gas

Underwriter—Van Alstyne, Noel & Co., New York.

poses.

purchase from it of $7,500,000 equipment trust certifi¬
cates, series YY, due annually from Aug. 1, 1958 to 1972,
Inclusive. Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler.

& Co. Incorporated,

$11.12^2 and $11.50 per share,

ket conditions.

(9/5)

Pacific Co.

Southern

.v.

r

the

depending upon mar¬
Proceeds—To discharge a note of $1,160,500 held by City Industrial Co. in connection with ac¬
quisition of Bethlehem Foundry & Machine Co. common
stock and for working capital and general corporate pur¬
tween

35

Continued jrom page

y

.

(1036)

£G

substitute

be consoli¬

Boulevard.

Mr.

Werner

Beverly
was

merly with J. Logan & Co.

for¬
~

.Volume 186

Number 5C70

.

.

The Commercial and Financial Chronicle

.

(

The

Indications of Current

following statistical tabulations

latest week

Business Activity

week

or

month ended

or

Latest

AMERICAN

IKON

AND

STEEL

Indicated steel operations
Equivalent to—\ •

month available.

Previous

Month

Week

Week

Ago

INSTITrTE:

(percent of capacity).

§82.7

on

Ingots «nd castings (net tons)

AMERICAN PETROLEUM

Crude oil
42

.

and

98.7

2,043,000

2,429,000

6,836,850

6,922,000

7,126,550

Stocks at end of period

Crude

to

runs

7,943,000

Unfilled orders at end of
period

1,852,000

12,407,000

12,425,000

11,920,000

13,014,000

7,713,000

7,843,000

7,764,000

7,831,000

171,897,000

172,136,000
33,021,000

175,698,000
30,611,000

175,816,000

32,219,000

—Aug. 23

149,671,000

146,703,000

133,822,000

31,521,000
134,381,000

52,237,000

50,923,000

48,737,000

46,063,000

759,140

750,640

736;407

770,413

——Aug. 23
——Aug. 23

.Aug. 23
terminals, in transit, In pipe lines—
at
—Aug. 23
;
;
Aug. 23

Distillate fuel oil (bbls.) at

(bbls.) at

ASSOCIATION OF AMERICAN

CONSTRUCTION

ENGINEERING

618,146

606,828

589,712

640,124

U.

construction

State

and

Bituminous

(U.

STORE

Electric

(COMMERCIAL

BRADSTItEET,
IRON

194,813.000

224,456.000

121,201,000

163,732,000

126,907,000

32,292,000

31,081,000

24,199,000

9,880.000

9.600,000

10.010.000

9,829,000

527,000

470,000

569,000

597,000

steel

Finished

100

121

Aug. 31

AND

INDUSTRIAL)

115

101

steel

INC

12,147,000

(E.

12,023,000

262

Aug. 27

12,474,000

11,565,000

260

281

ton)

York)

Louis)

IZinc

U-

York)

(New

BOND

Office

5.967c

5.967c

5.967c

$66.40

$66:40

$63.04

$51.50

$53.00

$53.50

$58.17

27.900C

28.450c

3.9.625c

24.925c

25.900c

Farm

26.575c.

37.300c

14.000c

14.000c

Public

14.000c

16.000c

13.800c

13.800c

13.800c

26.000c

26.000c

25.000c

25.000c

93.375c

94.125c

Public

96.125c

99.250c

Residential

Sept.

3

87.60

87.52

87.39

3

89.92

90.20

91.19

94.26

92.35

92.64

90.20

90.34

83.53

-

84.04

Sept.

3

Sept.
Sept.
Sept.

3

Sept.

Group
Public Utilities Group
Industrials Group

—,—

—_—„

—.—....

—

88.27

Z,

Sept.

OIL,

AVERAGE

ROUND-LOT

—

—

Total

89.92

—

90.63

91.34

101.47

91.62

92.20

3.56

3.57

3.59

3.21

4.40

4.33

3.69

4.13

4.12

4.06

3.51

4.25

4.23

4.18.

3

'

i

4.39

4.90

.4.54

•

,

4.86

4.32

4.30

4.26

419.2

•:

3.68

4.42

4.37

430.9

f

3

'

4.77

4.53

415.8

'f

(.

4.39-

.

.

ACCOUNT

FOR

286,966

3.99
3.78
•

3.66

v.

'*v *

3.63

426.6

Aug. 24

95

94

93

.—

Aug, 24

447,297

477,075

433,554

246,869

229,682

282,617

270,150
■

-

94

425,635

110.39

110.16

108.81

Otiier

the floor—

—

1,662,390

392,820

Aug, lo

280,800

1,073,470

1,039,990

1,531,980

—Aug. 10

1,328,130

1,250,590

1,924,800

215,170
22,300

152,970

394,810

12,300

31,700

145,720

371,000

321,310

158,020

402,700

340,210

;

;

sales

;

229,600

251,900
Total

floor—

purchases

.Short sales
Other

Aug. 10

•

!• !

-

.

Total sales

—Aug. 10
———Aug, 10

—,—
*

——————

;

396,'140

.'340,870

644,290

682.097

47,190

75,770
639.970

80,310

367,770

753,466

549,285

414,960

715,740

833,776

1.886,550

1.689,010

"

Total round-lot transactions for account of members—
Total

purchases

Short sales

:—-—Aug. 10

.—.——

—

18,900

80,540
"

—

.

317.940

468,745

Aug. lo

—

sales

1,666,830
i

,M

.

"

.

1,386*030

.

Aug. 10
—,—.—Aug. 10
Aug. 10

—

the

——Aug, 10..

2,902,170

2,662,427

,

—T.__——

sales

-—Aug. 10

357,5t)0

270,090

1,771,815

1,553,480

2,542.950

2,460,806

2,129.315

Other

26

25
19

22
156

165

531

517

4(58

40
'

99

41

96

94

3H

381

333

17

19

12

1,356

1,343

1,313

40

private

39

23

394

405

378

___

'

•

'.

-

;

;

buildings

^

41

Administrative

and

30

254

231

29

service-

nonresidential

43

249

32

26

37

buildings

.'

38

38

——

35

Sewer

ancl

water

^._u_

J

■:

48

136

535

518

120

120

122

117

,

systems—.

Sewer

38

.110

545

Military facilities

.Public

service

—...

!

,

68

66

68

54

54

38

41

90

83

84

12

enterprises..—r.—i

Conservation and development
All other public—

BtSINESS

13

11

33

jJ*—•

.

FAILURES—DUN & BRADSTREET,

INC.—Month

of

July.:'.

■j■'?'.'..Q*

<v

.

Manufacturing number""!—1—. ' >r
Wholesale

74'

number T—ll—

Retail

Commercial
Total

service

number

Manufacturers'

•

"

■

->5

165

j

-!

.

t

35

|

553
-■

153

—

number

'•

17.9

ubc.?'

570
■

540

164

141

81

93

87

1.059

1,084

1,018

■

______—

liabilities

$14,039,000

10,066,000

7.488,000

'5,024,000

3,551,000

7,442,000

$44,299,000

$51,454,000

$48,68.9,000

$28,928,277
109,067,241
47,561,873

$33, 536,576

101,9.97,405
53,420,167

120,042,300

123, 645,987

89,870,993

,

liabilities

$9,005,000

109,146,069

Commercial service

.

11,945,000

$28,937,331

—;——
liabilities

17,715.000

7,629,000

.

liabilities

$12,966,000
7,156,-000

12,715,000

Wholesale liabilities —:
Retail

Juit',:.

181.

number

liabilities

BUILDING

1.863,070

210,600

—

transactions Initiated off

Other

V

*1,195,170

254,660

—~

on

1

1,275.240

—.—

Total

26

166

utilities—

Nonresidential buildings
Industrial
'

Total

———AuB- 10
—Aug. 10

1.

—

48

1

43

27

construction

Other

67

43
•

84,473,659

4,892,000

-

12,809,000

MEM¬

OF

:

-

purchases
Short sale's

other

Construction
110.27

registered—

in stocks in which

transactions initiated

public

Construction number

260,018

Aug. 30

Total sales
Other

42

146

3.58.

,

4.30

4.31

'V

.

263,400

—

_

sales

All

101.97

289,054

period,—1——

Short sales

Other

73

99.52

Aug. 24

100

of specialists

purchases

185

20

96.23

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Transactions

186

207

75

•

101.14

—.

•

:

at end of

TRANSACTIONS

156

;

102.80

PAINT AND DRUG REPORTER PRICE INDEX—
1949

Other

332

153

■;

.

»

152

205

;

85.20

——Aug. 24

■

__—...

—_—

(tons)

309

43

155

;

91.62

•'

»

(tons)—_————

activity

307

,

.*

41

recreational

93.38

91.48

P0*., 0
—Sept. 3

—

NATIONAL PAPERBOARD ASSOCIATION:'

of

271

Hospital and institutional

3

Sept,

—

—

MOODY'S COMMODITY INDEX

Unfilled orders

788

270

1,674

52

;——

^Utilities-'Group™—.—.—c—

Percentage

786

.

103.97

88.40

4.40

(tons)

1

95.16

90.34

■'

Orders received

371

40

Educational

4.42

Group

401

:

100.98

3

^|'Pt. ^

Production

91.18
•i

3

Average corporate

1

1,260

391

1

._

AVERAGES:

DAILY

S. Government Bonds——__

—

3,10?

1.085

41

14.000c

13.500c

Railroad

Group

3,004
1,526

1.125

:

Telephone and telegraph

10.500c
10.000c

A

Railroad

$4,420

1,556

i

Railroad

15.800c

10.500c

94.12

Industrials

$4,347

3,047

774

utilities

10.000c

3

Public

$4,403

40

alterations

construction

10.000c

Sept,

U

128,747,000
$723,192,000

:

_.

and

10.500c

Sept.

YIELD

177,700,000

$978,925,000

OF

buildings and warehouses—

Aug. 28

Aa

BOND

168,532,000

262

and

Educational

27.800c

12,685,000

$1,000,108,000

;,

Miscellaneous

AVERAGES:

corporate

MOODY'S

___;

Stores, restaurants, and garages
Other nonresidential
buildings—
Religious

5.622c

13,816,000
60,523,000

shipped between

—

Industrial

Aug. 28

at

PRICES DAILY

Government Bonds

S.

Average

and

dwelling units

Aug. 28
Aug. 28

—

_

at

(primary pig. 997®) ut_

tin

Sir a Us

MOODY'S

237,205,000

—

Nonresidential buildings

Aug. 28

at

Aluminum

stored

countries

Additions

Aug. 28

,

St. Louis)

(East

credits

—

Aug. 28
Aug. 28

—

at

(delivered)

(St.

Lead

Zinc

$270,216,000

1-~

___

Hospital and institutional

s

at

(New

$219,798,000

BANK

July 31:

—_

goods

Social

refinery at
refinery at

Export

$181,284,000

OUT¬

BUILDING CONSTRUCTION—U. S. DEPT.
LABOR—Month of July (in millions):
Total new construction—
Private construction
'i—
Residential buildings (nonfarm)

Electrolytic copper—

Lead

$193,303,000

'

__________

QUOTATIONS):

Domestic

$260,547,000

\

.

OF

——

exchange
on

237

$66.42

*

Aug. 27
Aug. 27

M. J.

&

53,559

507,145,000
501,593,000
13,701,000 •'
15,111.000
44,874,000
43,264,000
35,209,000
21,459,000

GOVERNORS

RESERVE

of

Commercial

Aug. 29

(per gross

28,822

28,296

Total

120

.

49,531

-

102,775

:

Domestic shipments
Domestic warehouse
Dollar

413,080

69,957

—

133,455

(tons)

ACCEPTANCES

OF NEW YORK—As

&

DUN

—

1

146,153

Nonhousekeeping

(per lb.)

METAL PRICES

DOLLAR

New

Aug. 24

(per gross ton)

Pig iron

OF

STANDING—FEDERAL

COMPOSITE PRICES:

AGE

Scrap

153,493.000

output (in 000 kwh.)

FAILURES

90,719

-73,046

Imports

INSTITUTE:

ELECTRIC

EDISON

273,729.000

Aug. 24

=

85,744
•

$230,647,000

BANKERS'

INDEX—FEDERAL RESERVE

SYSTEM—1947-49 AVERAGE

Ago

of

(tons)

thousands)-

465,535,000
151,106,000

(tons)

SALES

(tons

$616,641,000

206,232,000

lignite (tons)

anthracite

DEPARTMENT

$401,045,000

104,251,000

BUREAU OF MINES):

S.

coa) and

Pennsylvania

$257,744,000

162,766,000

Aug. 24

municipal

OUTPUT

COAL

;

$436,495,000

—Aug. 29
Aug. 29
Aug. 29

—

grades

THE FEDERAL RESERVE
SYSTEM—Month
of July (in

foreign

Aug. 29

construction

output all

DEBITS—BOARD

i

49,273,000

Public

BANK

Based

construction

S.

Private

smelter

pounds)

■

NEWS-RECORD:
Total

Year

Month

of
^

zinc

Exports

ENGINEERING

—

2,009,000

V

•

freight loaded (number of cars)__
—Aug. 24
freight received from connections (no. of cars)—Aug. 24

Revenue
CIVIL

RAILROADS:

Previous

27,523,000

(bbls.)

Kerosene (bbls.) at

Revenue

1,725,000

7,969,000

7,763,000
26,556,000
1,894,000

Aug. 23

Finished and unfinished gasoline (bbls.)

Residual fuel oil

27,261,000

—Aug. 23

(bbls.).
Kerosene output (bbls.)
!
Distillate fuel oil output (bbls.)

'•

6,788,500
!i7,970,000
27,999,000

Aug. 23

Gasoline output

•

Slab

Shipments, (tons of 2,000 pounds)

Aug. 23

stills—daily average (bbls.).

Residual fuel oil output
Stocks-at Tefineries, bulk

AMERICAN ZINC INSTITUTE, INC.—Month

•-July:

(bbls. of

;

of that date:

are as

Month

Ago

79.8

2,000

output—dally average

either for the

are

Latest

*2,103,000

§2,116,000

of quotations,

cases

'

*82.2

INSTITUTE:

condensate

gallons each)

in

or,

Yea*

,

Rteel

production and other figures for the

cover

Dates shown in first column

that date,

(1037)'

1.823.570

3,043,240

2,840,816

"V

500,290

380,010

—

PERMIT

—

VALUATION

BRADSTItEET, INC.

—

DUN

—

&

215 CITIES—Month

of June:
New

England

Middle

Atlantic

South Atlantic

1

;

—

East Central
South

Central

West "Central

36,706,777
'25,343,009

Mountain
Pacific

'•08,481,875

__

Total

Unitl'd

106 779,549
42 127,147

78

678,584

35^94,927

39, 600,359

'20,289,611
114,620,679'

27, 816.615
106 ,671,395

States-

$543,893,626
55,200,493

$560,278,567

$558,856,212

63,632,718

Outside New York City

488,693,133

496,645,849

50,349,355
508,506,857

New

York

City

CASH DIVIDENDS—PUBLICLY REPORTED BY
U.

S.

CORPORATIONS—U.

S.

DEPT.

OF

COMMERCE—Month of July (000's omitted)

$764,000

$1,679,000

$731,800

$459,000

$454,000

$548,000

88

111

87

113

■TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

DEALERS

EXCHANGE

Odd-lot

sales

(Number

of

—

SPECIALISTS

AND

SECURITIES

by dealers
shares

ON

EXCHANGE

(customers'

N.

Y.

ERAL

COMMISSION:

r
Aug. 10

1,297,282

-Aug. lo

$65,612,799

$60,584,735

$90,589,510

$76,721,948

—Aug. 10

902,197

890,848

1,386,929

1,089,328

Aug. 10

9.427

8.078

8.180

Allg. 10

892,770

882,770

1,378,749

——Aug. 10

$45,043,056

$43,945,336

.

1,200,138

1,679,737

purchases by dealers (customers' sales)-—

Odd-lot

Number of orders—Customers'
Customers'

short

spies

nivin»■ c*
Customers'

nl

hor
other

sales.

' 1 fi- f

total sales_

>2——
'

a

u-

i.

-J

Dollar value

sales by dealers—
Number of shares—Total sales—,

Ml

„

.

$72,447,447

Aug. 10

:

shares.

of

ROUND-LOT

EXCHANGE

round-lot

Aug. 10
SALES

STOCK

ROUND-I.OT

AND

ACCOUNT

OF

Other

ON THE

STOCK

MEMBERS

195,760

229,350

329,050

272,250

195,760

229,350

329,050

272,250

N.

501,190

643,180

555,310

All

(1947-49

=

SERIES

—

U.

8.

DEPT.

OF

459.590

366,710

563,020

Aug. 10
Aug. 10

—

PRICES, NEW

8.308,560

8.840,780

13.316,810

497,060
11,418.760

9.768,150

9,207,490

13,879,830

11,915,820

,

100);

figure.

tent

a

OF NEW YORK—1917-49

100—Month

of

monthly),

(average

"I;

July:

unadjusted

(average

daily),

unadjusted.

Sales

(average

daily),

seasonally

Stocks,

—

adjusted-

unadjusted

121

117

82
83

116

124

xllG

134

127

144

144

133

135

145

128

$795,096

;

126

136

—

$839,887

INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS

OF

THE

FEDERAL

adjusted

RESERVE

of

July:

—

:

—Aug. 27

;

118.0

118.0

117.9

114.6

Aug. 27

1.202.000

pound.




92.1

92.8

88.7

106.7

106.8

106.1

Aug. 27
Aug. 27

other thPU farm and foods.

92.6

Aug. 27

'Includes

ESTATE

AREAS

98.0

96.3

125.6

125.5

S.

and

trust

of

LOAN

(000's

BANK

omitted):

savings

$877,202

118,516

Individuals

165,485

373,559

494,234

125,546

banks

124,820

362,805

:

120,520

161,659

289,587

314.405

308,742

336,919

371,079

410,122

$2,028*469

$2,144,270

$2,417,444

$182,398,500

$115,813,200

$49,212,500

122.3

Miscellaneous

lending

institutions

"

foreign crude runs.
§Based on new annual capacity of
133,495,150 tons
128.363.090 tons.
+Number of orders not rejmrted since introduction of
on

HOME

June

companies

TREASURY MARKET

barrels

—

of

NON-FARM

85.8

125.7

U.

BOARD—Month

IN

103.3

97.5

OF

FINANCING

Savings and loan associations——.
Insurance companies
Mutual

as of Jan. 1.
1957, as against Jan. I. 1956 basis of
Monthly Investment Plan, t Prime Western Zinc sold

one-half

BANK

omitted)

Sales

Bank

foods

commodities

•Revised

Sales

RIAL

Aug. 10

t

products

Processed

Average-

YORK—

SALES, SECOND FED¬
DISTRICT,
FEDERAL

RESERVE

RESERVE

NEW

Unadjusted

commodities

Farm

ERAL

( 000's

31

STORE

OF

SYSTEM—1917-49=^100—Month

Commodity Group—
All

July

Seasonally

/

(SHARES);

.

sales

—

585,600

TRANSACTIONS

Total sales
WHOLESALE

of

DEPARTMENT

OUTSTANDING—FED¬

BANK

Stocks, seasonally adjusted

STOCK

Y.

PAPER

RESERVE

sales—

Short sales

LABOR

$56,535,994

purchases by dealers—

Number

Total

6,899

1,082.429

—Aug. 10

sales

Other

FOR

Aug. 10

sales

Short

TOTAL

I—

1,382,828

"

Round-lot

Round-lot

As

purchases)—t

Dollar value

f

COMMERCIAL

STOCK

delivered basis at centers where freight from East St.

Louis

exceeds

RECT
OF

U.

Net. sales
Net

AND

S.

TRANSACTIONS

GUARANTEED

A.—Month
!

purchases

of

IN

DI¬

SECURITIES

July:
:

38

The Commercial and Financial Chronicle

(1038)

Electronics

(Special to The Financial Chronicle)

Mutual Funds

ANGELES, Calif.—Lewis-

LOS

Davis, Inc. has been formed with
offices at 524 South Spring Street
to

in

engage

Officers

securities business.

a

Davis,

Harry

are

=

and
Howard
Secretary-Treasurer.

ViceLewis,

MUTUAL

Judge Robert N. Wilkin ruled on Sept.

FUND

exempt from the jurisdiction of the

are

Exchange Commission. The judge,

,

T&afmal
S/m6 Set/'J/

Securities and

according to

an

AP

keyed," he said.
Pointing out that electronics and nucleonics are not static in¬
on the national economy, the fund official went on to say
it is "only natural that their pattern of growth should, at

fluences

that

times, appear to mark time." This period, he concluded, may be
a "breathing" period and "may logically call for a more con¬
disposition of your fund's assets, without in any way

such

servative

Commission.

changing either the ultimate investment goal or the basic

variable annuity program,

the

Under

Co., Amphenol Electronics Corp., Corning
International Nickel Co., Ryan Aeronautical Co.,

Works,

These, and other changes, in the portfolio, Mr. Tripp told
shareholders, do not reflect a basic alteration or deviation from the
nor its management's approach to longrange goals.
"They mirror, instead, management's awareness of
the fluid character of the investment field in wnich your fund is

America; Inc., and Equity Annuity Life Insurance

Co., to register with the

stock holdings were made in
Telegraph Co., Consolidated Electro¬

common

&

fund's investment policy

Inc., to compel the Variable Annuity Life Insurance

Co. of

to

Sangamo Electric Co., and Western Union Telegraph Co.

3 that

dispatch from Washington, dismissed a suit brought by
the SEC and the National Association of Securities Deal¬
ers,

additions
Telephone

Chalmers Manufacturing
Glass

potential far-reaching significance,

companies selling variable annuity life insurance policies

INVESTMENT

of

dynamics Corp., P. R. Mallory & Co., Marchant Calculators, Inc.,
Minnesota Mining & Manufacturing Co., and Royal McBee Corp.
Reductions were effected in equities of Aircraft Radio Corp., Allisf

By ROBERT R. RICH

decision of

a

Federal

A

Major

SEC Loses Suit in Variable Annuities Case
In

in

Corp.

American

Sr.,

President; Lucille F. Lewis,
President;

Thursday, September 5, 1957

..

Bell & Howell Co., George W. Borg Corp.,
America,: Photon, Inc., Raytheon Manufac¬
turing Co., Smith-Corona, Inc., and Union Carbide Co.
equity positions

Lewis-Davis, Inc. Opens
'

.

means

to achieve it."

payments by

WRITE FOR
FREE INFORMATION

policy holders would be invested in common stocks and

FOLDER AND PROSPECTUS TO

the

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

Broadway, New York 5, N. Y.

120

profits

Prudential Insurance

seeking without

three

A

in the past several years to obtain

growth
mutual

Market Decline

with

President Chester D.

GET THE FACTS AND

FREE PROSPECTUS

Development Securities Co., Inc.

1033 THIRTIETH

lifts

Tripp, in commenting on the compara¬

Axe

in defense

spending and the general outlook for business in the
year as dictating some adjustments in the fund's

He told shareholders
were

in

a

well-diversified list of

equivalent, which represents

or

common

stocks and

a

con¬

relatively strong liquid

Television Electronics Fund closed its third fiscal quarter with
total

ADMINISTERED FUND
Securities,

inc.

A mutual fund

investing

bonds, preferred and

common

realized

stocks, with the

in accordance with

PROSPECTUTON
from your

Distributors

a

record

new

of $156,783,659,

an

increase

of

capital gains made in the first quarter.

pared with

increase in the general market, as measured by the'
of only 6.4% in the same time span.

an

Dow-Jones Industrial Average,
The fund's

REQUEST

Investment dealer

detailed

Group, Incorporated

63 Wall Street, New York 5, N. Y.

the

quarter. New

report, which showed investments in 143 companies,
important portfolio changes effected during the
common

stock additions included 5,000 Aerojet Gen-

Corp., 16,800 Allegheny Ludlum Steel Corp., 20,000 Carrier
Corp., and 22,500 General Motors Corp. The fund eliminated its

can own

YOUR share

eystone

INVESTORS
.

in

of

.

mutual fund investing

a

common
a

facts

stocks. For copy

prospectus-booklet of
Fund, mail

about the

this coupon

Custodian Funds

today.

Fund

of Canada, Ltd.

concentration

specific investment

a

purpose

Name

For RESERVES, INCOME
Addressor

of

your

local investment dealer

or

AND COMPANY, INC.

J.

27

50

Keystone Company of Boston

Congress Street

Boston 9, Mass.

same

the

marked

course

of¬

was

first

time

course

a

devoted

entirely
to
investment,
companies had been given for full

Atomic Fund

Buys Into

in

Metals-Controls
Newton I.

of

Fund,
fund

expansion, construction
building."
•*

and road

a

Atomic

Inc.,
has

Growth

taken

invest in the

EATON & HOWARD
BALANCED FUND
17

economic

should

pleton

a

situation

tax

fth

benefits

Canadian

EATON

to

13

CENTS A SHARE

Dividends payable Sept. 25 to sharehold¬
ers of record at 4:30 P.M., Sept. 10, 1957.

cumu¬

24 Federal Street,

lative

purchase advantages and an
investment plan for the accumu¬
lation of shares through periodic
purchases.

& HOWARD

STOCK FUND

medium."

The fund offers investors

*

in

fund

acceptable and popular

investment

CONSECUTIVE

QUARTERLY DIVIDEND

certainly make Axe-Tem¬
an

CENTS A SHARE

Domin¬

"The reputation of the Axe and
Templeton organizations, the fa¬

the

re-

QUARTERLY DIVIDEND

they said, "has the
guidance, research fa¬

in

the

advantage of

Fund

Canada,"

and

Mutual

that

nd "CONSECUTIVE

cilities and the economists, statis¬
ticians and analysts to serve those

investors

announced

new

"Axe-Templeton

wishing to

Steers, Jr., President
Development

"which is now
phases of

industrial

CAPITAL GROWTH in the

S-41

Tke

the

previously it attracted one
largest enrollments in the

ion's future.

111 riaFcLLLLI

HUGH W. LONG

the

history of the Baruch school, and

represent

into

Canada




to

entering

vorable

Prospectus from

Elizabeth 3, N.

When
fered

joint

investment

expanding Canadian Economy

possible GROWTH

the

13.

Rankin

investment

of

Believed

Canada's economy,

of

securities, each FunJ with

now

16*8, takes place on
Thursday and Friday, Sept. 12 and

objective of the
Fund
is
longgrowth
through

Axe-Templeton
term
capital

fully managed
Mutual Investment Company
seeking long-term

A

Covering all classes of

be made

Economics

statement,
foresaw the
continued
impressive growth of

eystone

may

In person registration
two-point credit course,

mail.

Temple-, credit at
any college or university.
also carry
The subjects covered "during the
over.
spring semester will include char¬
Mr. Axe and Mr. Templeton are
acteristics of open-end and closedChairman and President, respec¬
end investment companies, man¬
tively, of Axe-Templeton
Man¬
agement
procedures, investment
agement. Mrs. Axe is Vice-Presi¬
company
policies,
management
dent.
appraisal, methods of distribution,
In voting to join with the Axe
taxation, regulation of the indus¬
organization, the Templeton di¬ try by Federal and state laws,
rectors and shareholders also ap¬
types
of
investment
company
proved the continuous offering of shareholders and estate planning.
shares to the public.

a

FUNDAMENTAL

.

for

Mr. Axe and Mr. Templeton, in

through

Companies and a
College faculty,

the

Registration
by

expanding values in Canadian en¬
terprises and the retention of all
earnings at low tax cost.

W

of

will supervise the course.

The announced
<

oral

of American business

H.

Investment

of

member

Vice-Presidents,

securities

You

Carl

Oberg, Research Di¬

rector of the National Association

and Everett H. Seymour,

ton

year.

man¬

agement's fudgment.
A

at

the level of resources on Oct. 31, 1956, the end of its

Adjusting for this disbursement?, "ML Tripp pointed out, the
capital value increase for the nine-months' period was 9%, com¬

proportions "balanced"

Management,

Axe,

Vice-Chairman.

Shares outstanding also reached record propor¬
tions, numbering 12,556,998, a gain of 13.3% in the same nine-,
month period. Net asset value per share, in the same period, in¬
creased 4.3%, from $11.79 on Oct. 31, 1956 to $12.49 on July 31, last,
after deduction for a distribution of 55.7 cents per share from

Incorporated 1933

in

assets

over

last fiscal

OP

Group

net

18.2%

W.

during
Bernard

evenings from Sept. 19 to Jan. 16.

President of
E. W. Axe & Co., is the fund's
Board
Chairman, and John M.
Templeton remains as President.
Mrs. Ruth H. Axe, President of
Axe
Securities
Corporation,
is

position.

THE FULLY

Axe-

Vance,

Emerson

that, as of July 31, 88.9% of the fund's

vertible issues in the broad electronics field and that 11.1% was in
cash

of

nadian industries and securities.

portfolio.

the

Key representatives of the in¬
company business will
guest
lecturers
during
the
course which will meet Thursday

Inc.,"; the former in¬
vestment adviser, is under con¬
tract
to
supply ; statistical
and
other information regarding Ca¬

and

given

at

be

Dr. Harold S.

Templeton

-

be

vestment

poration is the general distributor
of its shares. Templeton, Dobbrow

balance of the

assets

of
the

of

company

assets

will

semester

lege of the City of New York.

Ltd., is the fund's new investment
adviser and Axe Securities Cor¬

report, the fund executive cited anticipated reductions

Tel. FEderal 3-1000

total

the

fall

M. Baruch School of Business and

$140 million.

still

In the

investment

course

Public Administration of the Col¬

Fund

addition

fully accredited college

companies
the

sponsored funds to approximately

STREET, N. W., WASHINGTON 7, 0. C

Dept. C

A

devoted exclusively to investment

renamed

been

Growth

the

and

million

$4

severe

management

FUND, INC.

Atomic

Canada

market decline since July 31, said that the fund's
maintained the long-range viewpoint on the
growth potentials inherent in the electronics field in which the
fund's assets are concentrated, and repeated his closing statement
to be found in the third quarter report, that the "promising outlook
for electronics and nucleonics remains unchanged in your manage¬
ment's considered appraisal of the future."

tively

MUTUAL

of

shareholders

organization.
has

fund

Axe-Templeton

changed from that reported to shareholders this week.

DEVELOPMENT

family

Axe

when

the Axe

The

ATOMIC

became
the

of

funds

Templeton Growth Fund of
Canada approved
a
decision by
the Board
of Directors
to join

since the
completion of its third fiscal quarter, the investment position and
policy of Television-Electronics Fund, Inc., has remained un¬

through

Again
By Harold Oberg

Canadian
the fifth

old

-

of

Despite the decline in stock values in recent weeks,

ATOMIC SCIENCE

year

-

fund

member

permit the sale of variable annuities.

Television Fund Position Steady in

invest in

Offered

:

the New Jersey legislature of measures

success

authorization by

Co. of America has been

Fund Course

Templeton Fuml
Joins Axe Group

losses sustained by the investment portfolio.

or

The

to

•

annuity payments would vary in proportion to the

YOUR INVESTMENT DEALER OR

i

Boston, Mass.

186

Volume

Number

The Commercial and Financial Chronicle

5670

(1039)
market

cent
Its

weakness

to

add

to

holdings of selected issues.

a low price to earnings
ratio- considering its growth rec¬
ord; and reputation for quality in

selling at
>

Additional shares purchased in¬
the. instrument and control field.
clude
4.500
Homestake
Mining,
-Martin
Co. is looked upon as
.

shares Preston

18,000

East

Dome

the logical developer of a nuclear-

Mines, Ltd., 9.100 Combustion En¬

gineering,

Inc.,

Added

Co.

and
the

for

first

time

the

fund's portfolio were
shares Metals & Controls.
•

Commenting

Mr.

Steers

fund

still

has

tional

the

on

also
to

instrument

"• be

procurement

produced

atomic

program,

before

plane.

land

a

Metals

Cpntrols is expected to obtain
sizable

the

share

of

&
a

the

large fuel
addi-: element business arising from the
an
multirbillion dollar atomic navy

shares

of

which

company

Force

may

a

under construction.

now.

are

,

the

into

East, while

Division

puts

the

interesting growth
field of precision potentiometers.
that

based

complete

them

A

as

and

the,,. Potentiometer

re¬

Air

2,700

that

Middle-West

sult of recent readjustments in the

to

purchases,

stated

purchases, of

powered seaplane which,

Martin

3,500

Instrument acquisitions give them
a
much
broader position in the

study of the
General

neapolis

Controls

Honeywell
margins and

profit

is

no

Minn

insofar

-

growth
the

statistics shows

as

earnings

concerned.
However,
interesting and strong¬

are

most

est factors in the General Control

picture do not yet appear in the
figures, '..-./v..*'

.

Starting in the depression years
a few relatively simple con¬
trol devices, the company has had
with

Assets

r.Purchases

at

High
Incorporated

,For

Income Fund

months

.-

ended

American

Investment Co.

;

Net

assets of Incorporated In¬
Fund,, two and three-quar¬
ter. years since the start ^of the,
fund, reached a new high of $78,-.r'

,

from

$7.32; to

fund's

$8.47

4^%,; 2044, Michigan-WisQOpsin Pipeline 614%, 1977, N. Y.

rose

during

the

,

not
including
distributions of'. 77
share.
:1
.

Continued

from

page

323.

and

more

home

With

more

the

trend

to

«

automation in both

ies

of

centers

used

;

'

the

automation.

something

temperature

and

measure

to

of

and

of

because

oi

is
inas¬

east

are

of

The comparison
is based not only
the

similarity

bor

the

costs

margins,
devices

flow

and

453

2G0

240

118

General

pressure

profit

on

General Controls also ranks first

and more control
likely to be used in

manufacturing and refining
esses.

While

this

demand

in

rectly

moves

tems

work,

Du
v

Pont

of

is

solenoid

tied

the trend toward
has wisely

company

between

business

205

-••Adjusted' to

31,

Dec.

240

1956

common

ing competitors.

While the sales record has been
exceeded

the

only

by

Honeywell

in

above

list, the net per share
has not been impressive, but there
are
several reasons.
During the

base for the future rather
exploiting a few product
immediate gain.
Three
important acquisitions were made
through stock. So while earnings
have been penalized, the program
has given them
a
product base
very
comparable to that of the
industry leader. They now have
over 250 basic product lines serv¬
a

ing

for

factor in

earnings.

constitutes

This division is

now

on

its feet and should be
regarded as
plus factor from now on.

a

At a recent price of around
21,
General Cdntrols could be bought
at
only slightly less than 6V2
times last year's cash

pared to
well's
It

flow, com¬
Honey¬

23 times for

some

1956

cash

appears, that

reported

minimum

1957

earnings

will be $1.65,
market, the stock is

at current

so

flow.

selling only

12.7 times compared
Honeywell's estimated
It is not to be inferred that

to 27 times

$3.75.

General Controls' earnings snouic
be

capitalized

highly as those
of Honeywell, but the
great spread
does not seem justified.
I know
of

no

as

other true growth stock with

such

an

that

can

apparent

bright future
bought for as little

be

something

over

six times cash

flow.
The capital structure consists of
$3.2 million long term debt, $2.6
million preferred and 800,925 com¬
mon shares
outstanding (1,500,000
authorized). The stock was listed

di¬

auto¬

sales

widen the market.

dividend yields 4.8%, an excellent
return for

Based
lieve

around

pretax
but

it

recent

Three

margins
appears

only

a

"

The

company's incentive pro¬
has resulted in a loyal and
high grade group of employees.

gram

All divisions are
currently op¬
erating at high levels in spite of
a dip in new residential construc¬

tion and

slowdown in

a

expansion.
I expect

new

plant

General

Controls to
aggressive program
expansion in the future, but

continue
of

an

the present

even on

plant, the cur¬
only 9 to 11 times

rent market is

term expected earnings.

near

This,
believe, is outstandingly attrac¬
for

stock

such

that

definite

a

growth

certain

seems

in stature and size

over

to

grow

the years.

DIVIDEND NOTICES

expectation of 10%-12% is not
reasonable.

If

ROME

CABLE

CORPORATION

un¬

these

margins
attained, near term earnings
between $1.90-$'2.30 could be

are

*0Me, new yowc

oi

74th Consecutive Dividend

ex-

The

Board of

Directors of

Rome

•

Cable Corporation ha9 declared

con-

•

•

DIVIDEND NOTICES

secutive Dividend No. 74 for 35 cents

•

•

share

per

of

October

TT'T'T-rL?

T

the

on

Common

Capital

•

the

Corporation, payable
1, 1957, to holders of record

the close of business on

September

Gerard A. Weiss,

Secretary

ALCO PRODUCTS
'
'

""

:

30 Church

INCORPORATED

Street, New York U, N. Y.

Preferred
Common

Dividend

No.

Dividend No.

197

dollar

one

seventy

September 11, 1957. Transfer books will not
not

New

September 4,1957

SUNDBERG'*

Secretary

kept

day declared
dend

of

share
this

a

quarterly divi¬

Eighty (80) Cents

on

the

Company for the
on

October

of business

CORPORATION

15,

July 10, 1957

quarter

ending September 30, 1957,
able

TENNESSEE

per

Capital Stock of

stockholders of record

10%-

SSI! COftFONATlOM

The Board of Directors has this

be closed.
A.

York

133

five cents
($1.75) per share on the Preferred Stock
and of .twenty five cents (25tf) per share on
the .Common Stock of this Company have
been declared, payable October 1, 1957 to
holders of record at' the close of business on
of

Dividends

pay¬

1957,

at

to

the close

September 16, 1957.

STUART K. BARNES,

Secretory

A

(55c)

dividend
cents

declared

of

per

fifty-five
share was

payable September

25, 1957, to stockholders of
record at the close of bust'
ness

Guaranty Trust Company

to

of New York
61

September 11,1957.

John G. Grrenburcb
Broadway
Treasurer.

New York

6, N. Y.

and mechanical
the

and

counting devices),
Potentiometer
Division

Electrocircuits,

of

Inc.

of

LONG ISLAND LIGHTING COMPANY

Pas¬

NOTICE

DIVIDEND

adena. The Perfex and Production

THE

following dividends
been declared by the

W,„B

QUARTERLY

Board of Directors:

,

'

enn

Electric

A

regular quarterly dividend

of $1.0625 per

share on the
$4.25 Cumulative Preferred

DIVIDEND

>"

•

A

quarterly dividend of $0.60
share in cash has been

•

per

•

declared
Stock

of

the

on

C.

Common

T.

Stock, payable October 1,
1957, to stockholders of rec¬
ord at the close of business

Financial

I.

•

•

Corporation,
her 1,

payable Octo-

1957, to stockholders of

•

record
•

•

FINANCIAL

at

the close of business

September

10,

1957.

The

transfer books will not close.

A

quarterly dividend of
$0.25 per share on the Com¬
mon
Stock, payable Octo¬
ber

of

1, 1957 to stockholders
record

business

at

on

the

close

September

of

13,

1957.
•

Checks will be mailed.
C.

•

•

John Kuhn,
Treasurer

•

August 29, 1957.

Transfer books will not be
closed.
mailed.

Checks

will

be

J. W. Reilly
Secretary

————

Quarterly Dividend
antht

clared the

following quarterly

payable October 1,

1957

Common Stock

m

The Board of Directors has de¬

dividends

September 13, 1957.

on

Company

(Incorporated)

PREFERRED STOCK

I




operation.

term

DIVIDEND

CO RPO RATION

ported by a team of 21 first flight
personnel in all segments of their

10%,

near

were

that

Preferred Stock

QT

widened, to con¬
on
improving margins
efficiency. They are also sup¬

Rome, N. Y., September 4, 1957

DIVIDEND NOTICE

142ND

and

capable of sales of
million.
Last year's

$35

4
:

product

16, 1957.

The

f

de¬

are

been

centrate

at

..have

f i

has

are

DIVIDEND NOTICES

acquisitions

importantly

General

industry and they
termined, now that the

base

Stock

that
their
base, are the Perfex Corporation
(automatic controls), Production
Instruments Co., Chicago (electric
added

negative

the

the

present capacity, I be¬

on

a

I believe this

growth stock.

a

they

be

cases,
of

one

Their goal is to build the
company
to a position of greater stature
in

tive

greatly
The current $1

would

some

strongest assets.
The
Ray brothers are a group of com¬
pletely dedicated men who liter¬
ally live and breathe the company.

I

should

this

Controls'

July,

well.

have

while

the New York Stock Exchange

greatly exceeded that of their

compared

as

management is dominated
the four Ray brothers and

by

in

this

1960,

The

on

and

to

improvements in margins.

some

During the

industries.

many

Looking ahead

possible volume of $55 mil¬

a

lion, it is not difficult to see earn¬
ings of up to $3.50-$4 assuming

Therefore, while
net
earnings last year
$1.49 per share, the cash
earnings per share were $3.18 for
the same period. The Perfex ac¬
quisition has also been a drag on
reported

postwar period, their depreciation
has

pected.
and

were

as

with
30% for Minneapolis-Honey¬
of

over

sys¬

are

(•»■(

299

shares.

CARL

defense

more

f

185

274

255

August 27, 1957

11%

control

field

this

and

to

The

becoming more complex
important. Control de¬
vices are used extensively in air¬
craft, missiles and other weapons.
There are many competitors in
one or more phases of the control
business, but the three major well
diversified companies are Minne¬
apolis - Honeywell,
Robertshaw Fulton, and General Controls.
and

234

314,

Mining .;

Alcoa

mation.

and modernization market.

defense

manufacture

the

valves

proc¬

primarily with new plant and
equipment expenditures, there is
also
a
very
sizable replacement
In

Electric

Minnesota

as a

and.; product mix.

of-gases

more
are

155

Minneapolis-Honeywell

of

It operates through
five main divisions: heating, in¬
fluids.
V';
dustrial, appliance, air condition¬
In the residential field, there is
ing and refrigeration, and special¬
an
increasing demand for more
ties.
The company ranks first in
and more complex control devices
the
production of self-powered
in heating, cooking, laundry equip¬
heat control systems for natural
ment and air conditioning.
gas,
and
with
the »continuous
The industrial control field ap¬
growth projected for natural gas,
pears
to have one of the most this division should continue to
dynamic futures. With rising, la¬ show excellent results.

:control

Share

Robertshaw-Fulton

engineering,

quality

high

as

comparison

of sales

Mississippi.

but

to

misnomer

a

60%

as

its

011

and

third

compan¬

referred

This
*

with Honeywell

are

pressure "

regulate

to

the

nerve

They

the

is

'Minneapolis-Honeywell

West."

the
>

often

is

and

much

the

Controls

General

largest of the diversified

dustries.
are

*Net per

404

.

Controls____

than

industry, the control
industry should continue to out¬
pace both GNP as well as some
of the more publicized growth indevices

base:

Sales
.

General

ing

2

and

Control

a

•

The Security 1 Like Best
was

as

Growth

«••

.

,

lines

idex

1947-1949

314%, postwar period, the General Con¬
1998, and Compania Anonima Col- trol management has very wisely
concentrated upon a program of
gaiterPalmolive notes, 63,4%, 1962.
sound product diversification ana
integration. They have been build¬
Central

Central-Michigan

gain

per

Broadcasting; also Chir
St. Paul and

Milwaukee.

;

Pacific
share

per

existence,

capital
(cents

and Storer
;cago,

..

asset value

Net

the years

Continental

Marshall Field, Montgomery>tWard,aHi Y., Chicago & St.
Louis, .Public Service E. and G.,
Revere Copper and Brass, R. J.
Reynolds Tobacco, class B, Rock¬
well Spring and Axle, Seaboard

July 31, the 11th quar¬
terly report, reveals. The number
of shares outstanding were, 9,246,714, held by more than 27,000
stockholders, including a number
of pension funds, churches, edu¬
and

glamour group. Some idea
growth is evident from the
following index numbers; using
of this

KLlVf,

320,973-on

banks

Credit,

of the

Last

year, their de¬
percentage of sales,
4.7%, twice that of their lead¬

preciation
was

growth in sales that rivals most

a

Baking,
Federal - Mogul - Bower
Bearings, Great Northern. Illinois
Central, Iowa Power and Light,

,

associations.

Illi¬

.

come

institutions,

of

American Tobacco,-Atchi¬
son, >.,t Borg - Warner,
Bridgeport
Brass,- Colorado
Fuel
&
Iron,
nois,

Commercial

cational

during
the
three
July 31 included

competitors.

39

to

COMMON STOCK

holders of Preferred Stock

371*

of record at the close of business
on

per share

September 13, 1957.
Per Share

Series

,

Payable September 30,1957
Record Date

Series B,

5%

$1.25

Series D,

4.25%

$1.0625

E, 4.35%

Sept. 13, 1957

$1.0875

Series

Series F,

4.35%

Series G,

4.40%

$1.0875
$1.10

VINCENT T. MILES

Auguftt 28, 1957

Treasurer

Declared

west

September 4,1957

penn

electric

system

Monongahela Power Company
The Potomac Edison Company
West Penn Power

Company

Chronicle

The Commercial and Financial
40

.

BUSINESS BUZZ

COMING
EVENTS

Washington...
BeVinththe-Scene Interpretation*
from the Nation's

And You

Capital

Investment

In

1957

6-7,

Sept.

WASHINGTON, D, CDown
the years the United

through

Senate has been dubbed

States

exclusive

most

"World's

the

members.

limited -to 96

club,"

is

to

i people

a

great

the

There

truth

label

deal more
than most

Often

realize.

perhaps

Republicans on
verbally tear
each other with fury and

Democrats and

floor

Senate

the
into

the bene¬

"righteous scorn" for
fit of the "record."

offices it is not unusual for
them, on the heels of a battle,
to pat each other on the back,
offer congratulations
on their
rip-snorting speeches and bit¬
ing retorts.
way

and

Senator
Senator

Republican

If

Democratic

meets
a

A
B

likely to
Inform them that
despite the
fact that Senator B is a Dem¬
ocrat he is one of the outstand¬

and a
great credit to the Great State

ing members of Congress
of

Sen¬

the Nation.

to

and

X

that Senator B
will do the same thing for him
knows

A

ator

the Great
duly impressed

from

of X are

by the brilliant encomium
their senator by another.

up

remarks

floor

Sept. 20, 1957 (New York City)

Security Traders Association of
New York stag week-end at The

to be a segrega¬

than

Mississippi

in

tionist

Dune

in

L.

New York."

Fall

Oct. 7-8,1957 (San Francisco, CaL)

Association

bluntly
told
Republicans
that as a result of their actions
in
the civil
rights issue they

"So!—When

well forget about woo¬
ing the South into their fold
through party realignment.

paid

to some of the political angles
place recently off the

field

highly political civil rights

the

was enacted.
and probably will

that

legislation

The law can

Breaking Motorists' Back?
A

have

a

the

of

bearing on the outcome
1958 and 1960 National

people perhaps, realize
both Senator Lyndon B.

Few

that

Democratic leader
and Senator Wil¬

Johnson, the
Texas,

from

Knowland, the Republi¬
can leader from California, got
"hurt" in the scrap.
However,
each also came out of the battle

liam F.

with

plus marks to their

some

political credits.

Johnson

Senator
to be his

.*'•
would

like

party's nominee at the
convention. lie

the bill, but
discreetly aided in steering it
ion the course to final passage.
He made sure that he neither
not only voted for

offended

the

Old

South

nor

Northern Democrats.

could
the Republican party's
nominee

Presidential

the

Richard
Nixon becomes sidetracked

event
M.

in

Vice-President

along the way, is the

dropped some words that nearly
everybody already knew, but
did not dare say. He said it was

ing

anxious

direct vote.

Republicans

the

Because

added:

He

"Thus,

The

civil

up

a

political civil rights
sent to the White

members of Con¬
gress were still pointing to a
pertinent speech delivered in
some

the

House
one

and

of

in

the closing

hours

the most respected

influential

members.

Al¬

though the speech attracted no
National attention, • because it.
was not delivered by a National

I
f

Marcantonio,

ago,

years
an

extreme

Vito

85th

as

The

DIEGO,
is

Calif.—Roger

now

Lynch, Pierce,

that
the
Con¬

serv¬

common

on

passed

House

no

20%

on

a

SAN

with

Fenner

FRANCISCO,

tied
duel

to

Far

Democrats

Their

bitter

one

words

a
fierce
afternoon.

stung

other

like

smoke

of battle cleared,

antonio

whips.

After

each
the

& Beane,

the
story
goes)
walked off the floor and out in
to

the

Speakers'

his

patted
back.

lobby

colleague

on

and

the

Said he:

Away

Places,

and

Repub-

I

don't

know

what

I

would do if I did not have you

against back there in the

to

run

B

r o n

parties thinking.

snapped: "You don't hurt me a

x."

Whereupon

Rankin

(New York City)

New York annual dinner dance
at the Commodore Hotel.

(Hot Springs, V*.)

National Security Traders Asso¬

at

Convention

Annual

(Hollywood Beach,

Investment Bankers Association

Convention

Annual

at

Holly¬

wood Beach Hotel.

ers

at

Association

annual meeting

the Shamrock Hotel.

Company, 240 Montgomery Street.

■

of Canada annual convention at

Manoir Richelieu,

Murray Bay*

Quebec.

Reynolds Adds Two
(Special to The Financial Chronicle)

FRANCISCO,

SAN

Calif.—

Harry B. Mew and Daniel Nyhan

joined the staff of Reynolds
Co., 425 Montgomery Street.

have
&

Joins Lawson Levy
(Special to The Financial Chronicle)

C.

ney

Morse

is

Levy & Williams,

Street,
Coast

members
Stock

Calif.—Rod¬

with

Oct.

29-Nov.

3,

1958

(Colorado

Springs, Colo.)
National Security

ciation

Annual

Traders Asso¬

Convention

-

at

the Broadmoor.

Blyth Adds to Staff
(Special to The Financial Chronicle)

SAN FRANCISCO,
liam C.

Calif.—Wil¬

Gow is with Blyth &

Co.,

Lawson, Inc., Russ Building.

1 Montgomery
of the Pacific

Exchange.

TRADING MARKETS
Botany Mills
A. S.

Campbell Co. Com.
Fashion Park

Indian Head Mills

„,s*

United States Envelope

Morgan Engineering
National Co.

Carl Marks
FOREIGN

&

Co. Inc.

SECURITIES SPECIALISTS

20 BROAD STREET

TEL: HANOVER 2-0050

"John

ing at Beverly Hills Hotel
Oct. 12, 1957

Calif.— June 9-12, 1958 (Canada)
Investment Dealers' Association
connected

Marc¬

(so

Exchange

Firms Board of Governors meet¬

New York

in

up

P.

Merrill

Securities

Coast

Pacific

with

SAN FRANCISCO.

January, after many mem¬
Congress are back from

junkets

(Los Angeles,
Stock

April 23-25, 1958 (Houston, Tex.)
Texas Group Investment Bank¬

Robert J. Keane is now

Committee

it.

bers of

both

of

Fla.)

C Street.

to 10%, but

Finance

action

1957

Dec. 1-6, 1957

(Special to The Financial Chronicle)

the movement

concerned

10-11,

Calif.)
Association

left

figure, the remarks have mem- -i
hers [ of both^ major political




far

Lynch

City, and fiery John E. Rankin
of Mississippi.
verbal

was

attributed

story

few

a

They

Important Speech

"by

of

men

scrap

as

Senate

In

acid-tongued Congress¬

two

the

of

aret tax from

took

rights

in

Oct.

ciation

bill that would reduce the cab¬

the

wing member from

House,

the

Consumption

whole

is

carriers.

battle."
For Home

say

introduced

personnel in the armed

ices

Demo¬

lose

but

skirmish,

the

the

command may win

high

powerful voice in the next na¬
tional conventions of their re¬

While the

of

credit for the "alleged benefits."

cratic

SAN

Skinner

will

tion tax

House"

White

the

With Merrill

amount to "a few
thousand."
Only one was en¬
acted.
It lifted the transporta¬

likely to give the "Great White
in

session

gress

of the Negro appeared

the vote

to

measure

oc¬

the White House, he said

cupy

to

accurate

first

pointed

spective parties.

is

bills"

and

day at the Happy Hollow

Country: Club (to be preceded
by a cocktail party, Oct. 9 at the
Omaha Club).

(Special to The Financial Chronicle)

House

the total number of "tax reduc¬
tion

Bankers

frolic

annual

the Homestead.

Committee

Means

and

with

views.]

own

With Pac. Coast Sees.
of the

members

it

said

from them.
-

the "Chronicle's"

311

Ways

are

try and keep the
being taken away

to

from

vote

Democrats

the

(Omaha, Neb.)
Investment

ipi-etation from the nation's Capital Nov. 3-6, 1957

"Lost"

Bills

Staff

On the other hand,

ago.

said

he

Tax

administration 20

the Roosevelt

as

cline.

vote "stolen from

political stakes are high.
Both
Johnsoh
and Knowland
are
in
a
position to have a
The

An

go,

seek¬
Negro

recapture
the
them" during

to

and hidden,
high as they can
lest there be a gradual de¬
gone

in¬

appears

<and rntey <or may not tcoincide

autoist, both open
have

first Re¬

publican leader in a generation
to let a civil rights bill come to
the floor on a

South erne r then

obvious Republicans were

his

owning and operating an auto¬
mobile. Some House Ways and
Means Committeemen say they
are
convinced the tax on the

Battle

the

driving be¬
of the ever-rising cost of
restrict

should

modest

a

reduction

IThis column is intended to re¬
flect the "behind the scene" inter-

become serious if the

cause

Lose

Exchange

Security Traders Association of

Although not serious, it could
motorists

if
is to

The tall

Father

Senator Knowland, vlio
become

organized militant

group,

trying to
categories.

posals will begin shortly after
Congress reconvenes right after
the New Year begins.

by about ,$60,000,000.

But

.

years

1960 Democratic

!

.

1956

CIO and

its
once
powerful voice
again be
heard in the political and legis¬

".

The

raised.

has

the

lative arenas."

elections.

by

created

it could be only temporary,
been

only

tax

come

Highway Trust Fund h^s fallen
short of estimated yields from
the additional tax on motorists

an

gain credit

possible at this time.
Hearings on the tax cut pro¬

"become

minority

parties

However,

signal, although

storm

tax

he,

the ADA,

to

seek

reduce taxes in some

NAACP,

the

their

for

said

must,"

will

licans

Mississippi

in

back

either."

he

alternative.

like

bit

dang

deserting the South to which
they "owe so much." Therefore,
he "said the South has but one

"It

Oct. 10, 1957
Association

accused, "without
bitterness or rancor," Northern
and
Western
Democrats
of

connection with

Stock

ing at Mark Hopkins Hotel.

I was a shrewd in¬
gambler!"

up

were

when they're down I'm a

Nebraska

that took

Senate floor in

stocks

my

vestor—now

the Demo¬
historic

the

of

side

cratic

chamber,

of

Firms Board of Governors meet¬

as

to

Meeting at Santa Barbara

Biltmore.

He

turning

(Santa Barbara,

Investment Bankers Association

and called a

He took the floor

political spade a spade. Neither
Democrats
nor
Republican
leaders liked what they heard.

may

Deck, Westhampton Beach.

I., N. Y.

Sept. 25-27, 1957
Cal.)

Both Parties

Warns

12 at

(Chicago, 111.)
Analysts Society of
Chicago 2nd annual golf outing
at Medina Country Club.

lot

a

(pre¬

Club

Investment

political

is

"it

as

easier for him

background points

This brief

been

a

by

Sept. 19, 1957

directed against
unofficial, off-

ever

has

Country

dinner Sept.
the University Club).

demagogic

Perhaps the sharpest
criticism
him

"Politiking"

Cong-Range

Medinah
ceded

remarks.

Then

Constituents
State

is

with Republican col¬
leagues
oftentimes.
Neither
Democrats nor Republicans have
accused him of

(Chicago, 111.)

Municipal Bond Club of Chicago
21st
annual field day at the

aligned

day.

some

strict party man but

Bro¬

election

Whyte's Restaurant.

at

Sept. 13, 1957

Ranking Democratic member of
House Rules Committee, he
a

Customers'

kers annual dinner and

the

is not

(New York City)
of

Association

Mississippi
leader of the

a

Hotel.

Hopkins

the

and

brief¬

Association

Bar

Sept. 12, 1957

Conservative bloc in the House.

of Senator B's con¬

group

stituents, Senator A is

of

dean

delegation

public and hide-a¬

and in their

is

ever

the cloak rooms

back in

But

delivered off-thecovering
about
10
minutes, was made by
sentative William M. Colmer.
and

He

Francisco,

laws &

talk,

The

cuff

(San

conference
on
securities
regulations at the Mark

ing
♦

Field

Calif.)
Federal

.

1957.

Thursday, September 5,

..

(1040)

•

_

NEW YORK 5, N. Y.

TELETYPE NY 1-971

Riverside Cement

Flagg Utica

LERNER & CO.
Investment

Securities

10 Post Office Square,
Telephone
HUbbard 2-1990

Boston 9, Mass.
Telehrp*
BS 69