The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
/
,
ESTABLISHED 1839
Reg. U. S. Pat. Office
Volume 184
New York 7,"
Number 5566
N. Y., Thursday, September 6, 1956
Cents
Price 40
Copy
a
if/fV'
EDITORIAL
•
,;r
;v.;'
-V
{
The discount rate at the Federal Reserve Bank
of New York.
cost from
to AlA%.
now
Commercial}paper
are
:
much
grade corporate :
for some time. *
Yields on longer term Treasury's at well • over ..
3^4 % is no longer a novelty ip the financial mar¬
kets. Other rates are, of course, more or less in
keeping. This state of affairs is being described
as
"tight" money, and a good deal of speculation
is current as to what effect it is likely to have on /
business.
:
yi;?;
■
There can, of course, be no doubt that money ■
is less plentiful than it was Or that rates are defijX'
nitely higher. It is natural enough for students y
pi the outlook to inquire what these changes will
br will not do to the state of current business. It
Corporation,
'
By GEORGE M. GADSBY*
Chairman of the Board, Utah Power & Light
'
I..
•
.
;
and
on
Exchange
one
Contests
Act
of
1934
in
-
V- •
,v
^r'
We
have
function
or
In
of
out
pass
for the. cohtrol of the man¬
inter-city
lines
e
which
spread
the
ered
as
:
I
d
/
Continued
on
page
Continued
18
they pretty well
cov¬
Just
mind
you
George M. Gxd.by
for
investment
as
set
a
1900 .and
of harness.
1920
they
as
new
;
always keep in
price
progress,"
so
"What
must studiously observe
the
development and the timing
enterprises, Pope's words ap-
24
Continued
on
page
20
♦An address by Mr. Cadsby >»efor* the *Oth w»steri»
Trust
Conference, Salt Lake City, Aug. 24, 1956.
Underwriters, dealers and investors in cor¬
of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 28.
—
porate securities are afforded a complete picture
and
State, Municipal
in
and
.;C. S. Government,
State and
;
,
Municipal 1
Securities
telephone:
9.
OTP
Underwriters
STATE
and
and
COPIES OF OCR
distributors
HAnover 2-3700
"POCKET GUIDE F0I
TODAY'S INVESTOR''
SECURITIES
BOND DEPARTMENT
CORN EXCHANGE
.
ARE NOW AVAILABLE
ON
BANK
bond
department
30 BROAD
ST., N.Y.
I
REQUEST
THE
THE FIRST NATIONAL CITY BANK
Burnham and Company
MEMBERS NEW
YORK AND AMERICAN STOCK
15 0ROAO STREET, NEW
YORK 5,N. X.
Harris. Upham &ce
OF NEW YORK
Members
EXCHANGES
•
DI4-1400
New
York
Chase Manhattan
Stock Exchange
BANK
120 BROADWAY, NEW YORK 5.
Bond Dept. Teletype: NY 1-708
TELETYPE NY I-Z2M
CABLE: CO BURNHAM
34 offices from coast to coast
Net Active Markets Maintained
$100,000
To Dealers, Banks and Brokers
INVESTMENT
t. L.WATSON &co.
SECURITIES
ESTABLISHED
1832
the
goutfuo&t
Exchange
American Stock Exchange
NEW YORK 4, N.
£>MUfu0€dt COMPANY
Payable in United
CANADIAN DEPARTMENT
Price
Y.
MONTREAL AND TORONTO
Goodbody
&
15,
1965
States
PERTH AMBOY
115 BROADWAY
NEW YORK
1 NORTH LA SALLE ST.
CHICAGO
Analysis
dollars
99V4 to yield 4.10%
DoMcaoTi Securities
Co.
Grporattoti
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
0AUAS
October
our
Canadian Exchanges At Regular Rates
DIRECT WIRES TO
Doniger, Inc.
4% Debentures
Due
Teletype NY 1-2270
25 BROAD STREET
FIRST
Municipality of
Metropolitan Toronto
CANADIAN
Commission Orders Executed On All
New York Stock
McGregor-
The
SECURITIES
Members
of
Housing Agency
Bonds and Notes
LATEST
BONDS
of
INVESTMENT
CHEMICAL
Public
♦Ussi^1
MUNICIPAL
40
Exchange Place, New York 5, N. T.
Teletype NY 1-702-3
WHitehaU 4-8161
a
you must
initial
in
.Be-*
were
address
SECURITIES NOW IN REGISTRATION
DEALERS
on page
have
good investment.
;
by Mr. Armstrong before American Bar Association
Section on Corporation, Banking and Business Law, Dallas, Texas,
Aug. 28, 1956.
,
.
. v
♦An
picture.
I
eastern
archaic
tween
:
J
economic
experience
part of the coun¬
try. Withrthe coming of automotive
transportation the decline began and
now an inter-urban
line is about
•
^
.
1 ectric transportation
rapidly increased and
until
'
his eye over the rates of the past,
quickly brought to the conclusion that the
the
own
my
"
.
as one runs
*
■
-
watched almost the inauguration of
„
he is
';
Company
■
all seen enterprises performing a useful
manufacturing a much-needed commodity
proxy
agement of listed corporations. Proxy
problems were uppermost in peo¬
ple's poinds at that' time because
of a number of notable proxy fights
WfU.e*4lties which,the Comipis^
Hoosevelt into the White House,
.si#t 'had experienced in appfiring
;
rules written in general terms' for
I ;The fact is that from the date of its birth until
the typical uncontested proxy Solici¬
tation to the long drawn-out battles
mid-1930, the discount i rate - at the Federal Refor corporate control.
serve Bank of New York was never lower than ;;
*
'
J. "Sinclair Armstrong
In that talk a year ago, I outlined
3%, and that figure was so seldom in effect that '
;
•.
revisions of the proxy rules;to deal
it might almost be called rare. Four and five per
with proxy contests which the Commission was consid¬
cent were not infrequent at all. Call loans are;
ering.
In the months that followed, after receiving
public comments and holding a hearing, the Commission
'as is well known, the most volatile of street rates,
but
■
Appearance of advantageous investment possibilities in
atomic energy within next decade is predicted by Utility
executive who does hot,' however, see at this time atomic
energy prospects offering capital stability or income consistent: with the conservative needs of trust fund invest*
ments. In emphasizing how kilowatts or
capacity kilowatt
hours of generation offer cost figures little better than
educated guesses, Mr:.Gadsby refers to: costly atomic
laboratories; enormous reactor testings station required
by one gaseous diffusion! plant with its limited output;
theoretical and.. practical problems in substituting, loir
example, U235 for coal, and safety and other obstacles.
Concludes ultimately atomic energy is a "must"; makes
recommendations designed to expedite its development.
;
the Section
Business 'Law of the
Aug. 23, 1955, I discussed
in considerable detail the problems
faced
by the Commission in at¬
tempting to administer; our rules
under Section 14 of the Securities
Banking
American Bar Association
is not likely ;
jto suppose, as some now apparently do, that
money is really scarce or money rates are reallyr
very high except in comparison with the course
of ,these matters since the entry of Franklin
.
'/■
legislative, rale and form
When I addressed the annual meeting of
on
is, however, important to keep these things in
perspective. When that* is done,
,
revisions, and agency administration, developmentsdis¬
agrees with N. Y. Attorney General Jevits regarding SEC
role; reports opposition of NASD regarding enforcementextension, to 1,200 unlisted firms of the Act's financial
reporting and pro?y standards; and cites as the most
significant step forward the use of summary prospec¬
tuses and
pre-effectiye offers making new issue ad¬
vertisements more informative. Mr. Armstrong approves:
:(1) recently revised proxy rules; (2) Klein bill enlarg¬
ing civil liabilities of exempt offering; (3) new rule
permitting non-profit groups to develop atomic reactors;
and (4) a sound Statement of Acceleration Policy.
as 2;832%. High
bonds have been close to 31^%
as
,
Commission
Washington, D.
at 4%>.
3%%. Treasury bills have lately been placed to
yield
and ^Exchange
SEC head presents* current
314%'■toy
brings
Securities;
:
stands at 3 %. Call loans now
AV±% to 4V& %, Time loans
By. J. .SINCLAIR ARMSTRONG*
Chairman,
r
upon
requast to
Unlisted Trading Dept.
IRAHAUPT&CO.
Members New
end other
York Stock Kxchmnge
Principal Exchangee
111 Broadway,
WOrth 4-6000
Boston
n. Y. o
Teletype NY 1-2706
Telephone:
Enterprise 1820
The Commercial and Financial Chronicle
2
For Service
The
Dealers only
For Banks, Brokers,
Blocks
on
and
experience
long
wire
(The articles contained in this forum
minutes
sizable
with
service
maximum
V /
blocks of securities.
have
Next time you
sell,
let
mar¬
■
„
Thursday, September.6,1956
.
block to
a
or
your
problem—promptly.
us
In
lease,
it
last
that
reported
was
is
and
Associate
American
v
.
York 5
Teletype NY 1-40
WOrth 4-2300
BOSTON
CHICAGO
•
to
Wires
Private
$2 billion this
for last year.
selling at approxi¬
mately six times 1955 earnings, GI
common
appears
attractively
priced. Trading in the Over-theCounter Market,
range for
last
year was a high of 48 and low at
Currently
compared
with
409,010
produced
tons
FRANCISCO
SAN
PHILADELPHIA
e x-
pected to pass
,
Exchange
Principal Cities
10
35.
dustries Co. of
In
r
'*
■
'
(
very
.
RIGHTS
SCRIP
&
JOHN
-
Investment
A. Cayne
on
success-
operation with an unlimited
growtn potential and a review of
the past 10 years of this company
evidences such thinking. In search¬
ful
Specialists in-
Since 1917
The Kendall
'4
*
New
.Members
York
American
Stock
Stock
'
,
*
<>
Exchange
Exchange
1X0 BROADWAY, NEW
w
YORK 8
TEL. REctor 2-781S
has
ment
American Furniture
1955
in
at
were
53
Commonwealth Natural Gas
for countless manufacturers which
Founded
even
plastics
Lynchburg, Va.
TWX
39
used in dash¬
include
radio
and trim,
television cabinets
DC
Trading Markets
Birdsboro Steel
is
1/40
DC
industry for heaters, defrost¬
window lifts, seat adjustment
Corp.
conditioners.
air
and
motor
is
television,
T.M.T. Trailer
in
used
The
AC
fans
due
and
2>reerv.e<miGompam^
ESTABLISHED
37 Wall St., N, Y.
Elyria,
Ohio,
Bellville
a
P.
Juan
and
trademarks
•
...
and
Jay
On
cumulative
and
preferred
$5.95
"Over-the-Counter"
wholly-owned subsidiary
on
(General Industries, Inc. of Conn.)
phonograph
producing
and
is not
re¬
The
cording needles and textile pins is
located at Putnam,
At year-end
When
in Boston
visit
our
1955, the
current
and
current
liabilities
430.
Total
liabilities
$200,000
assets
more,
of
New Offices
KELLER BROTHERS
c)<'CO.
mo COURT STREET, BOSTON % MASS
T*i*phon« Richmond 2-2530
Teletype BS-A30
tion
consists of
$2,908,but
were
represented
bank loan at the time.
value
by
a
Capitaliza¬
2,469 shares of
a
*
book
value
was
much
through
lished
marks:
General
each
the
Industries
on
of the
last
greater
the
10
the
has
common
paid
a
stock in
past 16 years and in
years
the book value
this
The
glance.
showed
a
a
assets
as
sales
the
i§ made clear
is
now
after
indi¬
while
book value of fixed
depreciation
was
1955,
and
$20,467,000.
a
was
obso¬
The in
steady
a
over
Guarantee Bank & Trust Co.
Pratt Read Co. Common
Samuel K. Phillips & Co.
Members
Phila-Balt.
Stock
Exchange
Pennsylvania Bidg., Philadelphia
Teletype
.
N. Y. Phone
COrtlandt 7-6814
PH 375
HOV>* "Vo^
result of
a
uptrend,
period of
apprecia¬
is
a
of earning power and
available
of
as
$41,163,000, while the net amount
lescence
as
reasonably valued from the
standpoint
third
of
r
Buck Hills Falls Co.
cf
tion, bearing in mini that it does
pub¬
close
line
a
worthwhile
show
time
the
rate
return
in
is
sold
about
one-
mean¬
Over-the-Counter
Quotation Services
for 42 Years
approximating 5%
from
basis
now
stock
at
value, while
real
available
on
at
showing
the stock should
statements
company,
degree,'
increasing
seem
share.
by the portions in quotation
"The gross
common.
$42.12
y
-Pocono Hotels Units
stepped-rup research efforts. With
behind
report
official
by
cated
dividend
of
in
tively depression-proof, and to an
However, the actual book value
stock and
par
casual
a
year-end
is
company-
listing
possibility.
lying
4s, 1990
-
share last year. *
a
The
but
Exchanges
John B. Stetson Pfd.
Public Service Coordinated
-
'
business which should prove rela¬
greater than would
1955
5% cumulative $100 par preferred
180,940 shares of $4
at
appear
company
$6,158,492
of
„
of
traded
major
remote
stock is much
Conn.
had
a
the
of
one
inflow"
"cash
annual
is
stock
common
Walnut Street
Philadelphia 2, Pa.
New York 6, N. Y.
LO 8-0900
CO 7-1200
ATT Teletype PH 30
top
total
a
1914
1529
Broadway
earnings reported, in effect meant
shares of
35,311
companies;
Established
115
-
~
of these research ex¬
penditures, the company; depre¬
ciates
fairly heavily, with such
charges
agains t depreciation
amounting to $1,488,000 last year.
<.
Vegetable
Parchment
:
ately apparent.
Curitv,
as
Blue
Black,
•
~
BOENNING & CO.
1
other
Ip
1975, owned by three insur¬
The
1929
Tel. HAnovtr2-4S5l
years
1950.
since
all of which
\
Keyes Fibre Co.
increasing expenditures
for personnel and related oper¬
ating
expenses
have
averaged
more
than
$1 million annually
Murray
r.::
Telephone Co.'
Kalamazoo
V' -'V
expenditures
1,015,000 shares of common stock.
at
Marysville,
and
five
last
'
plants
operates
i
"an
stated
Branches
Bankers
Continuing Interest in
number of new prod¬
ucts have been developed in the
and
&
$4.50
GI
has
70
Grinnell Corp. '*
has gone in heavily
and
1897
—
Investment
Continental
increasing
manufacturers,
ance
pumps.
While
A
as
that last y^ar
was a period of depression for the
textile
industry
generally. tMs
company managed to earn $3.59 a This i§ equivalent to $1.31 a share.
share as against $4.07 in the pre¬ If we are to assume that these
expenditures could
ip
ceding year. Results for the 24 research
he * considered a)'part
of
weeks to June 16, 195(5, weTe equal effect
inflow"
that
expenditure,
to $2.17 against $1.80 a shar^ in "cash
that period of last year. Capitali¬ coupled witn the depreciation rezation consists of $9 million 3%s suits, added to the $2.64 a share
phonographs,
projectors,
research
for
Despite the fact
The
ers,
share
"cash..; inflow" >of
annual
&
is
glance,
a
.
Broadway,N.Y. 6 COrtlandt 7-5880
the, company is quite satisfactory.
sold to other surgical dress¬
Curad.
automo¬
bile
$124.22
;•
The company
nursery
Bauer
The
horsepower.
is sold to the
motor
to
up
The
gauze
p ers
111
against the $42.12 a share as stated
in the year-end balance sheet.
for
under such
motors, ranging from
1/1100
to
plastics.
from
electric
Commonwealth Oil
F. H. McGraw
fore,
Office Tokyo
Brokers
words,"the company
products are much, l.ess subject to has. spent an annual average of
cyclical fluctuations than the tex¬ approximately $1
a share
since
1950
in
tile, phase of the business.
research, which cannot
help
but
be
beneficial,
even
J The company's products * are
well known and are merchandised though results are not immedi¬
also makes small AC and
company
quick
a
Steadily
a
Established
Home
which is not
ucts,
ings
More than 45% of GI's
industry.
at
write
Securities Co., Ltd.
1955 than
LIFO basis.";
equivalent to another $10 a share.
It would bring actual book, there¬
and
products
cations in the electrical appliance
LY 77
obvious
sales consists
or
Yamaichi
of
sanitary prod¬
gauze
telephone cradles and many appli¬
business
Dover
are
Others
trim.
board
end
behind the stock, but
third of
a
Call
value of inventories
nearly " $12,000,000
the
information
current
working
reflecting heavier
for
researchv and
engineering development, inaug¬
urated in the early postwar years.
other
ago,
includes the automotive field
where
and
years
the
was
greater at
„
such
gauze
d i
totalled $2.25 com¬
General
Industries molds plastic products
STRADER, TAYLOR & CO., Inc.
which
textile
cotton
(Present regular rate $1.40.)
year.
Another
consists
products
pared with $1.60 paid the previous
.For
.
in
capital figures is the current re¬
placement
re-ui
20%
as
remaining at practically V
stationary levels for three years
now appear to be stirring due
to improved Japanese economy.
also officially has
reflected
?
STOCK S
v-/'. /v;
"Not
prod¬
ucts.
of
new
a
Camp Manufacturing
Life Insurance Co* of Va.
The company
branch offices
our
after
,
stated:-
to
J A P A N E S E
bring book up to $114.22 a share.
..
mistakenly
as a textile
many
-
"
of $100,-
than that at which they
on
the
company's
books.
That is equal to an addi¬
tional $72.10 a share and would
carried
are
such
ings „and
use
excess
NY 1-1557
Mobile, Ala.
Direct wires
inasmuch
an insur¬
greater
surgical dress¬
by
to
desiring
dividend
mon
Bassett Furniture Industries
by
Exchange
Exchange
Stock
New Orleans, La. - Birmingham, Ala.
000,000," that their real value is
a
minimum
$100,000,000,
that
;
would mean a value of $79,533,000
consumer
lated
record, exceeding $23.5 million,
resulting in earnings for the com¬
mon of $6.54 per share.
The com¬
Trading Interest in
LD
and
of "in
able value
hospital
as
plastics instead of metal, particu¬
larly for appliances.
;
Sales
-
presented
problems
solving
these properties
their book value on a
is
Stock
York
American
Members
of $100,000,000."
if we assume,
the properties have
as
Company
However, nearly
products
for
enviable record
an
excess
.Now,
„
manufacturers
hum
is in
of
value
surable
MURRAY
the company's total
of health
Fritzsche, native Clevelander,
company
has
outstanding
dynamic and aggressive manage¬
ment.
The
engineering 1 depart¬
this
Members New
HAnover 2-0700
demonstrated
Counsel, Boston, Mass.
considered
President Allan
Headed by
P.
company
i$sue.
W.
"mcdonnell & ro.
the
.
Steiner, Rouse & Co.
This additional value which lies
This
:
ing for the important leaders in
the plastics industry, General In¬
dustries leaves nothing to be de¬
sired.
of
view
Elyria,
t
P.
^
■
*
Industries, I feel it is th»
security I like best at this time-
General In¬
..
.
19 Rector St., New York 6, N. Y.
General
Ohio
presentsa
Company—John
Bought^—S old—-Quoted
Murray,
Investment
Counsel,
Boston, Mass. (Page 2)
and continued potential growth of
ago.
years
Kendall
The
Westinghouse and Frigidaire
same period came too late
Management ismost confident
that earnings for 1956 will com¬
pare very favorably with income
The
stated
1955
produc¬
tion to be 1,784,650 tons
Member
Stock
120 Broadway, New
*-
offset the reduction in income.
to
report
1920
Established
—
Morton A. Cayne. Syndicate and
Buying Dept., Gottron, Russell
& Co.,
Inc., Cleveland, Ohio.
(Page 2)
;
from
increased
has
stock
Company
Industries
in this
year.
Corporation
the
from
the plastics industry turned
out consumers products valued at
year
$1,800,000,000
New York Hanseatic
"
nor
production of automobiles. Earn¬
ings reported were $2.37 compared
with $3.79 in 1955. Unfortunately,
new contracts for plastics obtained
recent Associated Press re¬
a
be,
to
Alabama &
p
Selections
Louisiana Securities
General
First half earnings in 1956 were
adversely affected by the reduced
.
Industries Co.
General
intended
not
are
$13.69 to the present $33.96.
^
help solve
buy
of
,
-
Participants and
Their
offer to sell the securities discussed.)
as an
Syndicate and Buying Department
Gottron, Russell & Co., Inc.
Cleveland, Ohio
^
provides
—-
they to be regarded,
MORTON A. CAYNE
a
Over-the-Counter
of
within
kets
Forum
participate and give their reasons for favoring a particular security.
•re
private
covers
hun¬
that
system
dreds
I
.
12
This Week's
«•;.
week, a different group of experts
field from all sections of the country
in the investment and advisory
large trading department—
broad
financial contacts,
Our
with
Security I Like Best
A continuous forum in which, each
Try "HANSEAT1C"
'■£
.
(974)
of
present
the
effect.
$2
levels,
dividend
Kendall Co.'s
National Quotation Bureaa
Incorporated
"Over-the-Counter"
Established 1913
and which to
as a
common
me
seems
attractive
stock of semi-invest¬
46 Front Street
CHICAGO
ment calibre.
'*
New York 4, N.Y.
SAN FRANCISCO
:1
-ar
-*r
Volume
184
Number 5566
.
.
The Commercial and Financial Chronicle
.
(975)
Corporate Finance Developments:
Characteristics and Changes
IN D EX
Articles and News
Current
By CHARLES C. GLAVIN*
tions that exist both in the
*
use,"
The
make-up of securities and in their
and
(1) increased
of unsecured debentures and
use
COUNTING SHEEP? ;
Energy
Climactic
Struggle for
Wilfred May_____i
—A.
*
Bonds and Interest
pro-
Sound
a
Don't
__________Cover
_____________
3
j
*
cusses:
Cover
„
Practical Investment Aspects of
Atomic
Chile's
»LicHTfnsTfin
AMD CCWAJ«Y
Armstrong
Corporate Finance Developments:
Characteristics and Changes
—Charles C. Glavm_________,„_
;
strongly questions preemptive rights today in
explaining the difference between theory and practice, and in
contending that the small stockholder is best protected by
straight cash offering to the general public. Mr. Glavin dis-
'
Page
Developments
—George M. Gadsby____"
the "myriads of varia-
up
SEC
—Chairman J. Sinclair
Vice-President, The First Boston Corporation
Prominent investment banker points
■
dealing with dividends, funded debt,
sale, leaseback and sinking-fund; (2) subordinated and subsubordinated characteristics; (3) development of
complicated
wpreferred and junior preference stock changes with provisions
•
Link-Belt
#
'em
ing
dollars
U.
sleeo
to
us.
obsoletes.
over
And
instead
start
of
count¬
sheep!
"
Economy
;
4
j
Obsolete Securities Dept.
Rates—Roger W. Babson__—_____
Company—Ira
lose
Sell
4
99
WALL
>
tective limitation-features
3
Cobleigh_____
STREET, NEW YORK
Telephone: WHitehall 4-6551
6
K
*
dissimilar from debenture
not too
-
indentures;
A
and
and
Embarking on the subject of
financing is like ap¬
proaching a huge smorgasbord
its
hard
to
know
where
and
to
start
the
very
devil to know
when
to
stop.
Consequently,
I
going to
am
make
at¬
no
tempt to cover
the
field
but
devote
rather
time
my
discussion
V:V.
extent that I omit
Please
that
I
must
have
as
the
a
matters
on
the
outset
Modern
of
Thanks to
both
invest¬
corporate law¬
yers over the years we have a
great flexibility in creating secui rities custom-made for the pur¬
Increased
•
>
Use
of
Unsecured
.
Debentures
curities
is
the
increased
debentures
mortgage
bonds,
industrial
rthe"
use
of
instead
of
particularly in
field.
Mortgage
-bonds
are still predominant in the
-utility field, and for two reasons.
First, most utility companies al¬
ready have bonds outstanding un¬
der
no
series
seizure
the
under
Secondly,
of
property
bonds,
the
the
upon
which
same
is
direct
default
the
have
with
its franchise is a
and is entitled under
monopoly
law to
An
earn
a
fair rate of return.
industrial
lecture
annual
21,
by
Forum
Exchange,
Even
9
to
i
;
the
indenture
plant
is
far
more
result
a
to
the
senior
Tranquility—Tyler Kay_^___
Glavin before the
Finance, American
New York City, Aug.
Procedure
of
use
of
case
System.
15
Business Revival in
Prospect,
According to First National City Bank "Letter"__
The Farm Sector's Prospects
as
21
Viewed by Dean W. I. Myers._
Regular Features
de-
unsecured
not
necessarily
29
J.F.Reilly&Co.,Inc.
As We
Bank
-
,
.
42
See It
(Editorial)
a
Business
Insurance
Stocks
Man's
Bookshelf
_
8
_
Dealer-Broker Investment Recommendations^
;
P??<?ge clause." This simply pro-;J.....
omits the securing of
debt
otherEinzigi''International
any
and
nature
of
which
Pattern of Coincidence"
___
From Washington Ahead of the
a
__
the
business
News—Carlisle Bargeron____ 15
Indications of Current Business
Activity
Mutual
vary
problems
Funds
NSTA
subject
to
•
onlyl in limited amounts and
subject to certain tests. - This type
of exception
is in the spirit of
sound financing in that it .gives
the
borrower
*Prospectus
Notes
Our
Reporter
14
Our Reporter's Report
ing the basic elements of the se¬
curity contract he entered into. Other Protective Debenture
f
Public Utility Securities
i—_—___________________ 23
Railroad Securities
;
Securities
extent
of
way,
agree
to,
others
like
how much he has to
to
Security
other
protective
provisions depends on the credit
standing of the issuer—or put an¬
other
Offerings
sell
his
;•'>
•
..
The Market
!'•
The
-t'
.
.
•
-,*■
.
them
others llke them
on
a
sell
can
simple promise to
debentures,
restrictive
common
one
is
a
however,
pay
Washington
Continued
on
on
page
Spencer Trask & Co.
Stock
'
A
ad-
Climactic
Struggle for
Free Economy'
a
Exchange
TELETYPE N. Y. 1-5
Nasbville
Boston
•
•
Chicago
Schenectady
•
•
Glens Falls
Js
f
fColurnn not available this week.
t'V
,
Baruch Oil
22
•
.
■
_
Twice
Weekly
COMMERCIAL
1
Drapers'
Gardens,
London,
E.
C.
Smith.
&
Eng¬
Kenilind Oil & Gas
.
and
1956
CHRONICLE
FINANCIAL
by William
B.
Dana
*Prospectu8
Company
'
Reg. U. S.
B.
Park
HERBERT D.
WILLIAM
DANA
Place,
Reentered
Patent Office
COMPANY, Publishers
New
2-9570
to
SEIBERT,
President
statistical issue — market
corporation news, bank
and city news, etc.).
records,
Subscription Rates
Pan-American
Union,
Dominion
Canada,
Other
quotation
Other
Chicago
Offices:
3,
111.
135
South
(Telephone
La
Bank
Salle
St.,
STate 2-0613);
and
Note—On
$60.00
per
$63.00
$67.00* per
year;
per
in
WHitehall 3-3960
—
the
fluctuations
of
made
in
New
York
funds.
BROADWAY, NEW YORK 6
Teletype NY 1-4040 & 4041
Record
Monthly,
(Foreign postage extra.)
of
39
year.
Publications
account
INCORPORATED
of
Direct
PHILADELPHIA
Wires to
" DENVER
in
exchange, remittances for for¬
eign subscriptions and advertisements must
be
request
W» V. FRANKEL & CO.
S.
year.
Quotation
$40.00 per year.
the rate
Worcester
of
Countries,
Other
clearings,
on
Febru¬
Subscriptions in
United
States, U.
Possessions,
Territories
and
Members
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
state
matter
1942,
at the post office at New
York, N. Y., under the Act of March 8, 1879.
9576
SEIBERT, Editor & PubMsher
DANA
second-class
as
25,
ary
York 7, N. Y.
Thursday, Sept, 6, 1956
plete
•
%
General Transistor*
on
4.
page
ST., NEW YORK 4, N. Y.
•
Ferry
Federal Uranium
40
:_—;—*_
.
York
Angeles
•
6
You_
and
"Chile's
*See
PREFERRED STOCKS
TELEPHONE HAnover 24300
'
TMT Trailer
have
provisions.
limitation
-
2
interest and principal at maturity.
Most
to
• Los
deben¬
Copyright
New
Wires
Lithium Corp.
16
T*-
z,—__________
»
Members
Direct
Philadelphia • Chicago
•
#'
••
debenture.
REctor
25 BROAD
V ;; :
'
Streete
/•
••
I Like Best
Security
V
•
and You—By Wallace
.
•
Exchange PI..N.Y.
24
''
•
40
34
Corner
Salesman's
.
Teletype NY 1-1825 & 1-4844
28
The State of Trade and Industry
tures
HA 2-0270
37
Registration
Security
Prospective
.
in
Now
Measures
The
Singer, Bean
& Mackie, inc.
*
;
reasonable freedom
of action to carry on the business
without at the same time impair¬
Request
14
j
Governments,.,
on
on
8
___
Observations—A. Wilfred May—
but
TMT Trailer Ferry
36
News About Banks and Bankers,
mortgage,
a
Kenilind Oil & Gas
38
that
may be faced and with the credit
standing of the company. An ex¬
ample is the right to acquire new
Lanolin Plus
15
_
__
with
Revlon*
8
Baruch Oil
Inflation Trend Due to
without
equally and ratably
securing the debenture, thus ef¬
fectively blocking off any other
creditor from
getting in ahead.
Even here, however, certain ex¬
ceptions are often permitted, the
size
40
..
Coming Events in the Investment Field
Teletype NY 1-4643
(n-f-
21
w
alent for all practical purposes of
a
mortgage bond.
Foremost of
these is the so-called "negative
Broadway, New York 4
Cover
DIgby 4-4970
and
,
MATERIALS
outstanding,
25
Albany
STRATEGIC
.
I
number of sub-
a
The
is
»
___
financing when there isn't
already
RACING
Amended
sidiary operating companies of the
Bell
REFINING
37
___
Intensified Seasonal
unse-
possible.
WILLIAM
f
CORPUS CHR1STI
13
land, c/o Edwards
specialized in
12
*
German Dollar Bond Issues
on
Validation
proper¬
The
For many years we
ENTERPRISES
SOUTHLAND
The Real "Give Away" Is in
Public Power,
Says Guaranty Trust Co. "Survey".
corporations
where
Mr.
on
10
and
Published
.
CONTINENTAL
._
___
Toward Financial
utilities have used them for
1956.
have
BASIC ATOMICS
;__r.
mortgage is both
debentures
some
*A
Stock
7
—C. A. Sienkiewicz
and
meaningful.
turned
pur-
Fn0VeLVarlfLt'sfn^eaan»
property
;
of fixed
widely scattered
As
cured
mortgage indenture so it's
problem to continue issuing
mortgage.
6th
seizure
a
additional
of
management
so
a new
as
property
Perhaps the most significant de¬
velopment in the realm of debt se¬
unsecured
Ba'ilaine_____
___
instrument, however, as
To thevproper ^provisions can give it a
subjects of in- priority position that is the equiv-
rainbow.
at hand.
for
ties.
benture
applications
variations as there
ment bankers and
pose
lem
weaker
at
imagination
complex
present pra c-
their
many
colors in
are
Consumer Credit
What Prediction Can Be Made
from Dow-Industrial
Stock Average?—S. A.
Loftus——
expensive in practice.
For ex¬
ample, the mortgage must be re¬
corded
in
county court houses,
and tnis gets to be quite a
prob¬
tices in iheir
generalize.
and
Creating
as
in the
touch
realize
securities
assets isn't
as
deserving fuller comment, I'll rely
on you to pursue them.
:
on
factors,
mortgage
secur
a n d
Praise About
use-
:
terest to you or
other
a
certain
>■;/'
of
dependent
various charof
and
Growth—Paul M. Milliansj_____________________
Banking in the Decade Ahead for Our Industrial
Constellation
acteristics
rities
C. C. Glavin.
to
Caution
—Wesley C.
~
-
corporate
of
Consumer Durables and Credit
and Economic Stability
(4) why
bonds today command high initial call
price and/or noncallable features. Offers three actual
experiences to illustrate
different financing practices for different
purposes.,.
;
Word
SALT LAKE CITY
4
The Commercial and Financial Chronicle
(976)
by the Treasury. One might admit
the contention voiced in high quar¬
Chile's Climactic Straggle
For A Sound Economy
May reports on Chilean "sound money" Finance Minister's
from his post, following courageous adoption
current severance
"j V
.of inflation-curtailing measures.
has risen by only 16.9% during
the first seven months of 1956. It
here
demonstrates the had gone up by 70% during 1954,
of Chile with the na- and by 94% more during the sin-
Minister
inclusion
Finance
the
of
tions
gle
strug-
to
stacles
sound finance,
For Senor Her
has
a
r
e
served
the
as
P resident's
hatchet-man
in
acting
forthrightly in
taking the
ac-
measures nec¬
to
A.
Wilfred
the
as
American
end
Erhard
of
Latin
President
The venerable President
Chile,
Carlos
Don
Ibanez
of
del
must
the
basic
fact
_
.
.
„
26
Rampant Monetary Inflation
Another remaining potent inflation element is constituted by the
of
again
,
The Previous "A
Preceding
the
Finance
i
for
■
.
Minister
In
Chile
in
as
other
American countries the
demise,
South
army con-
stitutes another major political
obstacle to budget balancing. The
national defense needs, accounting
for 25% of the current budget,
could be materially reduced by
managed
materially to slow down the country's
inflation,
which
had
got
quite out of hand midst a wild
building boom. Effective measures
adopted since last February ineluded raising the rediscount rate,
courageously cutting army down
to size—possibly by putting real
restricting credit, in- defense needs into the hands of
creasing the sales tax rates, con- Inter-American defense organizatrolling and freezing prices, free- tion or NATO,
otherwise
ing
the
peso,
and
stabilizing
Pro-inflationary
again
is
the
wages.
agitation
Indicating the over-all curtailment of inflation, the price level
increase pension fund allowances,
Sizable amounts of the retirements
which
is
..
.
with increases in
insufficiencies, was defeated
legislature geared to "the
under
unbalance
Serving to
other
the bud¬
ate
get, despite forecasts of balance
exhibited to legislatures, is the
a
Our 25th
to the
(1).- investor
will
weak
wait
until
after
the
elections; and (4) not to count
long-term Governments show¬
ing any sustained strength.
revision, repatri¬
Recently,
interest and
monetary authorities
"tightened
their
controls
have
profits earned, the pull-out of the
capital invested is limited to 20%
again,
bringing
about
Welfare
nance
seem
■»
in
prices. I
bond
-
forecast
these
ties
business
as
remains
will
—
t
i
a
n
State-ism, which the Fi¬
Minister's tragic exit would
to render difficult to keep
sublimated,?
The
government, is
crease
of
17.7%
in
vestor to
total exports.
on
The
trend
for
been
f
is the
20
o r
months.
That
primary
why I
reason
have
the
advised
in¬
average
buy only short-maturity
•
bonds.
v> :-•.?>■■■£'
The above-cited decline in non-
exports is said to be due to
.Bonds Will Again Become
over-complicated note exchange i-, ■ / "-ii
K <■ Popular;
*"*'
copper
an
-
"system lacking the flexibility
re¬
*
e
/
'
•
X
:
Investor
•
J
.
#
interest
--
V
i, r.
bonds
in
./•■
has
the rise in
production •increased
somewhat
in
recent
committed to numerous Subsidies,
costs coincident with the monetary
weeks as uncertainties have crept
including sugar and wheat. State inflation. So the need for a healthy
into
the
outlook
for
common
institutions operate power, rail¬
export situation, based on balance stock
prices and as yields from
roads, communications, - oil, anti¬ between domestic costs and ex¬
the most popular common stocks
biotics, etc.
ternal prices, accentuates the ur¬
have
become
quite low. These
There is a liberal sprinkling of gency
for fearless politics—em¬ stocks could be
particularly vul¬
autonomous
and
"semi-official" bracing the constructive measures nerable in
any important market
institutions, The State Bank of required for economic stabiliza¬ correction. I
predict that investor
Chile, organized in 1953, four offi¬ tion.
interest in bonds will grow.
;
cial institutions, the National Sav¬
/If, *
*>'■'; *
Z'v.'-/.v..:
;/'As I view the monetary and
Hence—In the light of her com¬
ings Bank, the Mortgage Credit
business situation this fall, I fore¬
Bank, the Agricultural Credit ing year of political contests, the
see
a continued weak
bond mar¬
Bank, and the Industrial Credit political direction of the economy
ket. The monetary authorities will
Institute.
The Central Bank,' in in Chila must be watched both as
have to contend with possible up¬
addition to acting as the sole de¬
to
the
welfare
of
this
specific
ward price pressure arising out
positary of Treasury funds and of country, as well as its universal
of the steel wage settlement; but
the official and semi-official in¬
implications.
'•
nothing radical will be done until
stitutions,
is
the
only
savings
quired
by
afoot
l
■*
'
here
•*:.
after
bank.
Economic
and
Generally blocking
a
free
dynamic
/ MIAMI,
has
progress
economy
elections
in
nothing
then
our
services
Francis
added
I
southeast
p;
Fla.—Thomas P. O'Neil
been
du
staff
the
to
Pont
Second
&
Co.,
of
to
the
us
count
not
Government
121
long-term
showing any
on
bonds
sustained strength. After the elec-
Avenue.
pleasure in announcing the opening of a
-
208 SOUTH LA SALLE STREET
Chicago 4,
Illinois
.
,
Investment
•
Co-Managers
Morgan
F.
McDonnell
—
Paul
A.
Schroeder
to render these services.
Direct Private Wire to New York
F. Eberstadt
&
Co.
JvJC J) ONNELL & QO.
Established 1905
;
Members
65 BROADWAY
NEW YORK 6, N. Y.
done
Government Bonds
Do
Chicago OfFice
appreciation
Financial Institutions whose helpful co¬
operation enabled
be
business.
harm
to
*
express our
and
November.
will
(Special to The Financial Chronicle)
Foreign
Investment Law
toward
before
Nationalism—Under-
Industrialization
to
the
Certainly,
F. I. du Pont Adds
Corporations and Investors who have availed
themselves of
New
York
Stock
Exchange
—
American
Stock Exchange
Chicago' Board of Trade
120 Broadway,
credit.
prices
down
Telephone: DEarbom 2-6933
September 1,1956
firm
a
rein
has
•
good
main-
bond
\
that
;
authori¬
so long
—
.
Anniversary
appropriate time to
Firms and
further
a
decline
-
,
past
galloping
inflation
transpired
in ' a
framework
of
•
November
on
cognoscenti
;
con¬
bond market;
proclivity to add in expense items annually.,
li ,. .
after the original estimates. Thus
Thus, in this area, too, political
for i the. current 1956 year/ thesentiment constitutes a threat to
The
interest
(2)
grow;
(3)
tightening and money rate
rise by monetary authorities to
production.
without limit all
bonds
credit
foreign companies may/
1954 law
predicts;
in
tinued
whereas copper as well as
And
all
•
advice
different income groups,, and -S
to
is
Anaconda
We take
seems an
yisor offer* ^bond-buying
.
companies,
-
Effort"
his political
a
voice of the people."
;
other aggressive
here
and
BABSON
Nationally known financial ad-
a
early 1955 lowered the
copper
W.
..
_
Democrats, <*the note issue of the Central Bank
parties— * doubled, and irom ^951 to 1953; it
motivating the doubled
again, to, 19.9 ballon
substitution of a political econ- P®.®?8*. **
again anew to 28.2
omy for an economic policy.
billion by 1955, and to a fresh
peak of 53.7 billion by June 1956.
thus
foreign
on
true that
ROGER
•
i d d 1 e-of-the-road
and
in
J
political-like that having held of- expansion of money in circulation;
if ice since 1952, he must next year which currency,
of course,. has
face Congressional elections fol- been inflationarily created to meet
lowed by a Presidential election, the increasing deficits in the naall participated in by the opposing tional government's budgets. Be-.
Radical Party, equivalent to U. S. tween the en<* of 1947 and 1951
m
of
tax
-It-is
By
expect the prelimi¬ the
indispensable encouragement
bilization is again .running - into nary estimated balance at 170 bil¬ to foreign investment, such as is
lion pesos to be upset by a net
increases and family allowances
offered in Venezuela, Uruguay, or
deficit of 12 billion pesos arising
by employers.
Panama.
'
*
f
And the subsidy on wheat is from subsequently added expenses.
This gives a quantitative measure
Another
again to be raised.
Single Product Country
ft
to the fiscal heroism required.^
Keeping within
the
realistic
Accentuating the need for sound
possibilities, the maximum aim
indicating the public's anticipa¬ •policies is the country's -*•; great
is to keep wage
rises down to tion of continued inflation are the dependence on the world posi•'
lone-half the gap created by rising
high interest rates, as 15 % ?. on tion • of a single product. • For
prices; that is, to smoothe out the prime risks, a rate much higher receipts from copper totaled 66%
price-wage-inflation spiral by than
is
available
from
Roger W. Babson
equity of the value of all exports last
gradually narrowing the gap be- capital.
*
»'
;
,
' year. Concurrently, the value of
'{'H'
tween wages and prices,
exports of other commodities deand still advise
Overhanging Welfare State-ism
decline, with an over-all net in¬
free economy. But we
remember
decree
extent have remedied exist¬
,
Campo, per an interview with this
writer, with all possible fervor
making all moves "posa
ing
strong
'
But inflation assuredly remains
a real threat. The above-described
curbing of wage rises, which had
been exactly pegged to the price
level, was effected by a mere onevote majority after a long struggle. And subsequently, wage sta¬
{"favors"
sible" for
directions;
some
Interest Rates
•
Adenauer's Germany.
1
Bonds and
under-
.
the inflation—
May
some
the latter
r
nationalism
marked
-
tual unpopular
essary
1955,,.. with a a
year
acceleration during
months of the year.
gling
against
political ob-
to
Thursday, September 6,1956
.
.
,
,
SANTIAGO, Chi be—The current
head-chopping
economic
negotiating to
spend $34 million for development,
Kennecott Copper $25 million, and
Tax Policy and the People's Voice
an
American Smelting Company
Taxation represents another subsidiary another large sum. But
this
budget area here too where the evenameliorating
decree
obstacle of politics must be met maintains a 50% basic tax, with
head-on. Recently a newly pro¬
an additional 25% surtax which is
posed tax law, which would to adjusted downward in correlation
capitalists,
Analyzes legal provisions for foreign
including copper firms.
popular.
this
disputably bad in yiew of the sav¬
ings being used for the meeting of
current expenses rather than for
fulfilling the
urgent needs for
capital investment."
/
,
Cites re-emerging inflation
elements, economic nationalism and under-industrialization, '
and the need for courageous remedial policies, however un-
been
contributing
industrialization, resulting in gen¬
process is not in¬
erally high costs and inadequate
flationary because of the origina¬ productivity and with major de¬
tion of the funds from the people's ficiencies in the agricultural area.
real savings. But in any event the
Unfortunately
foreign
capital
economics of the technique are in¬
investment
is
still
hindered
in
that
ters
By A. WILFRED MAY
Mr.
has
utilized for borrowing
been
have
.
.
Detroit
—
New York 5, N. Y.
Asbury Park
—
Chicago
-
Volume
184
Number
5566
The Commercial and Financial Chronicle
...
(977)
tions
the
have
to
money
managers
terms
assume
that
mostly
Republicans—do
bankers
ject to higher
I
may
With
fight higher prices by
slightly tightening • credit
and raising money rates. I
again
would
who'
—
caution
the
Seibert
with
ob¬
rates.
money
CHICAGO,! 111.
are
not
Spencer Trask Co.
(Special to The Financial Chuonicle)
; South
average
investor against buying long-term
Government
bonds
with
any
has
Spencer
La
—
Howard
become
Trask
Salle
«
Rogers & Co. Opens
'
'
W.
Co.,
Street.
He
PITTSBURGH, Pa.—William C.
Rogers has opened
associated
&
Law and Finance
duct
135
the
was
offices
in
Two With
Building to
firm
of
name
Rogers
Rogers
con¬
&
formerly
was
w.-fS Vi: Langley-Howard,
(Special to The Financial Chronicle)
the
investment business under
an
Mr.,
formerly with Francis I. du Pont
& Co.
Two With Bache & Co.
White, Weld
Co.
with
Inc.
BEVERLY
Betty Keeler and
Co.,
445
Mrs.
Keeler
(Special to The Financial Chronicle)
HILLS, Calif.—Mrs.
Phyllis J. Ross
have joined the staff of
North
Bache &
Roxbury
was
J
■
,
.'
Drive.
previously with
Daniel Reeves & Co.
-
LOS
ANGELES, Calif.—John R.
O'Shea
and
have
joined
Weld
&
Francis
the
Co.,
O'Shea
Mr.
Konrad
523
F.
staff
Schreier
of
White,
West Sixth
I. du Pont &
Co.
thbught of profits. As with other
groups, I urge investors to
confine the major portion of their
to
short-term
Only
for
should
those
intermediate
Government
d
one
t h-t
e a
a x
and
issues.
purposes
build
abacklog of
Treasury issues
always worth par for
long-term
which
are
of
payment
means
estate
should
one
than
for
par
taxes.
not
them.
This
-
pay
more
Remember,
however,
that the
interest * re¬
ceived from Government bonds is
subject
to
Federal
jorate
Bonds
income
for
>i$Jifacducin<jfi :i,.:T%
:
taxes.
\
Insurance
eocfianded
tin
Companies
.The
difference
tween
in
yields
be¬
nationwide investment
high-grade
corporate and
bonds
in
a
given
Government
maturity is
•■/•■''. ""••■;'<■/:
relatively' small.
now
However, I question whether
-.-.:
V:
*'
v:\'
-
ctojaniyation
even
insurance
;'v
•' V.v.''
\
companies should buy
heavily into the corporate field
so
into
as
Governments.
individual
tains
investor
balanced
a
Unlike
who
fund
the
main¬
of
%
■
TORONTO
bonds
■
and
stocks, insurance companies,
particularly life companies, must
spread
maturities
some
long-term
AAA
utilities
and
bonds, including
rails. Colleges,
well
can
CHICAG(
SffXMOKlN
fcl—READIN
SrrfWTHAVEM
AgUE* YORK h;
WTERSON
•
^AOElPHiA
PITTSBURGH;
;•
CtfftoORE
and
hospitals, and funds
taxation
I
CLEVEI
include
not subject to
consider
good
corporate bonds. However, I think
buyers should put more of
their bond funds into utilities and
industrials than into rails.
RICHMOND*^
saFTfrancisco
iORFOlK
such
Bonds for
The
SOUTHERN PINES
LAS VEGAS
ANGELES
.OS
Ordinary Investors
investor to whom
yield, is important would be justi¬
fied in putting a small
part of
average
DALLAS*
his bond funds into
medium-grade
utility and industrial issues. On
long-term issues of such bonds, he
can
obtain
now
yield
a
of
HOUSTON
Wcwix
about
3.75%
• OFFICE
on
rails, 3.59% on indus¬
trials, and 3.62% on utilities. But
* CORRESPONDENT
these
at
yields, I prefer non¬
bonds, such as municipals
high-grade revenue issues for
taxable
and
those
who
brackets
about
I
are
and
chases
high
not
of
recommend
tax
mortgage
bonds
be
confined
issues.
are
movement
v:_* MEMBERS NEW YORK stock exchange
pur¬
corpora¬
to
first-
no
This
in
price
by what happens in the
In
CONTINUING THE BUSINESSES OF UNION SECURITIES CORPORATION AND EASTMAN, DILLON & CO.
Medium-grade
influenced
market.
high-grade
expanded firm will provide complete facilities for both individual and institutional
investors. It will hold
*
should
case
the average investor place
any of
his funds intended as a nest
egg
for, later purchase of stocks in
other than short-term
issues,
Eastman Dillon, Union Securities & Co.
worry
that
medium-grade
bonds
stock
the
do
marketability.
would
tion
in
who
memberships in principal securities exchanges throughout the nation
and will maintain active trading markets in a large number of
;
field of securities
underwriting,; the firm will offer
broad
a
unlisted securities. In the
of services backed by
range
r* r
ample capital and thoroughly experienced specialists in corporate and tax-exempt financing.
though he may have
to make some sacrifice of
yield. V
even
*
Convertible
Bonds
Ordinarily, I like to
convertible
bonds
to
.
my
%
readers;
questionable
this
very
field
Again I
be
made
recommend to
good
bonds.
—
purchases
many
should
short-term
The
r.
partnership consists oj the following:
recommend
but in view of uncertainties in the
stock
market
it
is
whether
.
,
LLOYD S. GILMOUR
in
GENERAL PARTNERS
;
.
JOSEPH II. KING
»
D. FREDERICK BARTON
now.
individuals
r
DONALD S. MACFADDEN
tax-exempt,
HAROLD H. YOUNG
•
S. LOGAN STIRLING
Elects New Officers
H. LAWRENCE
WILLIAM G. McKNIC.HT,
NORMAN S. DOWNEY
;"
JONES :
JR.
•
ELBERT J. EVANS
•
BASIL B. ELMER
•
ROBERT P. WALKER
*
WILLARD S. BOOTH BY, JR.
•
JAMES A. SANDBACH
JOHN W. MACKEY
JAMES B. CULLUM, JR.
S. STEWART ALCORN, JR.
'
•
JOHN F. POWER
*
H. LAWRENCE BOGERT, JR.
•
DWIGHT C. BAUM
JOHN W. SHARBOUGII
F. S. Yanlis Co.
'
JOHN ELLIS
DISQUE D. DEANE
EDWARD T. HERNDON
•
,
JAMES P. MAGILL
NORMAN W. JONES
MILTON
«
•d1CHICAGO, 111.—F. S. Yantis &
Co., Inc.,
135
South
La
Salle,
Street, members of the Midwest
"
,
J. YOECKEL
•
'
'
.
LIMITED
Stock
Exchange, announce that
Fredric B. Welch has been elected
President of the
company, and F.
Stuart
Yantis
has
been
elected
Chairman of the Board of Direc¬
THOMAS C. EASTMAN
®
LORING DAM
•
-
.
ARTHUR C. BOYCE
PARTNERS
•
HENRY L. BOGERT
MATTHIAS PLUM
.
«
*
HERBERT L. DILLON
ELISHA RIGGS JONES
tors.
15 BROAD STREET, NEW YORK 5, N. Y.
Two With R. D. Standish
(Special to The Financial Chronicle)
BOULDER,
Duncan
and
Colo.
—
Wilfred
now
associated with
ish
Investments,
E.
R.
1227
L.
CLEVELAND
Dean
Piatt
are
D. Stand¬
Walnut
Street.
NEW YORK
September 1, 1956
PHILADELPHIA
READING
CHICAGO
EASTON
LOS ANGELES
PATERSON
BALTIMORE
CARLISLE
BOSTON
HARTFORD
SOUTHERN PINES
St.
previously with
was
bond
purchases
5
BUFFALO
LAS VEGAS
The Commercial and Financial Chronicle
6
veying is seldom identical. Either
a
broader belt; a different grade
Link-Belt Company
V*
By IRA U. COBLEIGH
•
,
some
is
ity.
Out in front of 19 Rector
Street, New York, they're build¬
ing
a new
10-story air conditioned
all
such
Let's look at it.
con¬
t i
strue
there
o n
s, /
doz¬
are
to be
a
most
excellent enterprise.
Link
Because
Belt
-
produces
Link-Belt
have
to
ing, first the it. But in its own particular field
big burrowing of endeavor, serving construction,
for
walk
inspec¬
tors"
watch¬
to
about
uniformly good,
Auto
and Industry
6/30/56
at
than
a
fact
sixth
The sales back¬
50% larger
ment
was
earlier, and earnings
should run above
share. For the first quar¬
chines
Automobile
With
110-foot
a
it
arm,
drops
2 ton "I" beam into place as
an
a
deftly
That is, it
skilled guid¬
did
draglines,
cranes,
ricks
expert flycaster.
and
hoists
otherwise.
The guy was a bit of
as
each
the
one
and
on
lever
looks
joker, too,
exactly like
a
that operates a beer tap;
each one, he had fastened
ment.,
An
ber
about
forte
is
Link-Belt
orders
Contract
remem¬
that
its
initiation
quite
fee
exclusive
cians,
modest
and
the
to
enter
club
of
base
$4.02%
an
this
techni¬
wage •
hour;
is
a
with
double that for all overtime.
The
livery of installed equipment, es¬
pecially engineered and designed
to meet the
particular, and
unique, needs of a
times
customer.
For
some¬
drive
on
This
major
is
trend
can
feel
earning
what
pleased to
The
of
announce
the
is to continue
naturally."
that
DETROIT,
Club
of
Mich.
Detroit
The
—
will
Outing
hold
publication,
"Steel,"
major labor problems are in sight for the remainder
However, a shortage of steel will hamper some
no
year.
b
million
.
autos
f
rinnst**ucH*n—Industrial,
;
institutional and road
commercial,
building should push totals to $44 billion plus in 1956, compared
biRion
with
last
year.
Freight Cars—Deliveries will hold at between 5,000 to 5,500
month for the rest
'
Sales
—
climb
should
of
'
i
Aircraft
1956.
Shortage of plates will limit
car-
the
12
the last quarter.
g^od too.
Machinery
in
tool builders will receive $1 billion
a last-period spurt mav enable them
Machine
1956
and
in
new
to
ship $850 million to $900 million worth of equipment for the
year,
orders
with
Carl
M.
Loeb-Rhoades
has been admitted to
our
&
Co.)
firm
Machinery—Shipments
this
year
limited
are
only ;'
Look for much the same per¬
formance in 1957, too.
/
:
/ -v
V
'*/'//"V
Farm Equipment—Volume for the year may rise as high as
$1.4 billion, but that would still be under the totals in both 1955 ~«
and 1954.
;,;:/■
■:,</' ■.■
v
/
;/.;/••/>/;t'
7 /Steelmakers will have enough orders to make a 114.5-million■*;
ton
year,
according to the metalworking authority.
If there
;
hadn't been a steelworkers' strike, output would be above the
•
*
by capacity in practically all lines.
,
,.
record
of
117
million
tons
set
last
;
year.
#
-
V/V;/*. /
/ /r A 114.5-million-ton
seven
year means 64.2 million tons in the first
months, 7.9 million in August, 10.4 million in September
'
//-•
-;
/•
Continued
on page
an¬
Orchard
followed
by
dinner, at
7
o'clock.
/a
/
Announcing the dissolution of the partnership of
JOYCE, KUEHNER & CO.
effective August
■
31, 1956
The party is restricted to mem¬
..
as a
.
partner
j
Club
JOHN J. O'KANE JR. & CO.
Member New York
42
t
bers of the Bond Club-only.
Victor F. Dhooge, Manley, Ben¬
nett & Co., is President of the
and
Chairman
'Committee.
Cecil
of
'
the
V '
R.
—
Cummings,
/
Entertainment
Telephone DIgby 4-6320
Joyce will continue the
business under the firm
(Special to The Fin\nci,\l Chronicle)
LOS
System Teletype NY 1-1525
of
WILLIAM H. JOYCE COMPANY
Investments
29
BROADWAY
,
Bell
name
—
Calif. Investors AdJ
•
;
Mr. William H.
Security Dealers Association
Broadway, New York City 4
ANGELES, Calif.—Frank¬
lin G. Rothenbush has been added
to the staff of California
3932
Wilshire
Investors,
Boulevard.
:
$670 million in 1955 and $892 million in
*/:;-•%.
',. ^//,v
;/y 7;
Electrical
on
(formerly
/
compared with
1954.
outing and golf party at
Lake Country Club
Tuesday, Sept. 18. The day will
be devoted to golf, tennis, swim¬
ming and other activities, to be
the
;
■,
,
—
/
billion, compared
Appliances—This
be
v
'
largest aircraft manufacturers
with $4.9 billion last year.
year's good performance will continue in
Total unit sales will match 1955's and 1957 will
$5
to
of
nual Fall
ROBERT N. KULLMAN
r
December, bringing total production for 11)56 to
•'
(2 million less than last year).
7' /;;/'"/:"f-
and
Bond
its
*
,
Autos—Watch for 1.8 million cars to be produced in October,
con-
/
.
-\
reported
-
„
metalworking
weekly
November
given
example, belt
:
.
Industry
■
•
operations.
Steel-consuming industries will fare about this way:1 *
in their
comes
'
1955.
Sept. 3 that
for
power
Schedules Fall
are
billion "in
company
has to do to increase sales volume
and
'
activity' in the last months of the year should bring
metal working' sales to $138 biljipn in 1956, compared with $129
right
has
Detroit Bond Club
We
"Steel" Views the Outlook for the
investment, since all the
"doin'
.
r
,;/f^igh
the
confidence
some
,
.
seasonal
output dipped slightly this week with small
declines in the output of meat, flour, and dairy products.
Food
engineering
staff,
the
resources,
the
plant
facilities and the reputation for
turning
out
tailor-made
costreducing machinery — to meet
hundreds of special requirements.
Stockholders, in
this; enterprise
,
,
:'
sponding year-ago level.
Link-Belt's alley. LKB
tradition,
soared
week, were almost twice as large as both a week ago and
ago.
At $616.6 million for the week ended Aug. 30,
were
the third highest this year.
The cumulative total
for awards in the first 35 weeks of 1956 is 19% above the corre-
costs,, automation, and
machinery to reduce or eliminate
down
..
,
construction
awards
lowered
labor.
,
.
engineering
month
a
knows, there is
one
;
civil
for
awards
this
builders.
turning out a
an
official
tap
label — Pabst, standard line of mass produced
Schaefer, Ballantine and Rhein- items such as
tractors, or lawn
gold!
The guy is a member of mowers, but in custom
engineer¬
Local 14 International Union of
ing. Almost 55% of its total sales
Hoisting Engineers.
It
requires come from manufacture and de¬
$500
for
orders
a
every
dropped 5% below a year ago. Although unfilled
paperboard decreased markedly, they were close to
production
60% larger than production.
as
terrific industrial
production was high and steady at a level about
ago, roughly the same rate of gain thai has
in the past several -months. Lumber rose 4%
year
week, but remained slightly below a year ago.
Lumber
dropped, too, although shipments were uo.
Paperboard
this
company's history. The back¬
has already been mentioned,;
in
not
a
maintained
been
but
the
is
oil
above
log
•;
v
important thing to
Crude
5%
the
a
22
_
and
that, under the
ers, for the transportation indus¬
ance
of the jovial hoisting engi¬
try,, and car dumpers and unneer who knows just how to de¬
loaders, icers and grain unloaders.
ploy the rig by manipulating the There is also a line of water treat¬
four controlling hydraulic levers. ment and
sewage handling equip¬
in
year
der¬
portable
also
a
deliv¬
shovels,
—
Link-Belt
.
level
lowest
production rose fractionally and was slightly higherago. Steel operations were at 97% of rated capacity.
Although electric power production dropped 4% from the pre¬
ceding week's level, it remained 4% above a year ago.
Gains
from a year ago in power consumption ranged from 2% in the
South Central area to 12% in the Rocky Mountain states.
of
.
the
to
sagged
production
Steel
than
can
crush, screen, and size ucts, which are distributed through:
all sort, and convey 54 offices in the United
States,
them
efficiently, and in
great and a number abroad. There are
outfit over the road at speeds up volume.
Foundry equipment and 10,500 employees and 8,300 stock¬
to 30
and
the
other to processing
holders.
*
machinery
are
sup¬
operate the hoisting gear which, plied; and for heavy construction
The
position of Link-Belt in
when hooked up to a short (40 ft.) of
every
variety, and for road heavy industry is probably as
boom, can lift 35 tons vertically. work;
there
also
are
assorted favorable today as at any time in
production.
months, down 26% from a week ago, 41% below a year ago. Most;
of the week-to-week drop was attributed to plant shutdowns for
model changeovers.
year
,
materials
resulted in a mild decline in the over-all level of
Unemployment claims declined for thesuccessive week to the lowest in nearly a year. Employ¬
and wages remained at peak levels.
industrial
.
engines (easily inter-changeable
right on the job), one to drive the
leading credit agency says:
paperboard
averaged
and, later, the
has 2 identical 145 H.P. Waukesha
country's trade conditions this week,. Dun
our
Although steel production continued to gain this week, slight
ecreases in the output of coal, electric power, automobiles,
and
$6.00 a
heavy -industry, .metals, mining ter,
alone, the net was $1.31 per
and
oil,
it's
an
acknowledged
share,
against 810 in the similar
shell of the leader; and among the very few
period in 1955 — and on a lesser
building as it industrial companies in any line
amount of outstanding stock.
rises,
girder that has earned a profit in 49 out
About -capitalization, it couldn't
by girder. of the last 50 years.
Ira U. Cobleigh
be simpler, merely 1,829,779 shares
Among these
The growth and present mag¬
of
common.
No
preferred,
no
''inspectors," nitude of Link-Belt deserve some
include your reporter.
Holes in comment. The company showed bonds, and no bank loan. Financial
position is marvellous with a 4-tothe ground don't interest us much, net sales of
$22.9 million in 1939; 1 current ratio and net
working
but when, overnight, there mate¬
$61.6 million in 1946. The equiva¬
capital
alone equal to about $28
rialized at the edge of the street lent
figure for this year should a share.
curb,
a
shiny brand new red exceed $160 million, thanks, in
Link-Belt
is
further
distin¬
and black crane, mounted on a
part, to the acquisition (in ex¬
guished by virtue of its constancy
self-propelled ten wheeled chas¬ change for 134,433 shares of Linkof dividends. For 50 years LKB
sis, we were fascinated. We want¬ Belt common) of Syntron Corpo¬
has unfailingly paid a cash' divi¬
ed to know more about it so we
ration, with a $12 million gross
dend; and there was a 2-for-l
watched, and asked. We watched derived
from
manufacture
and
split in March, 1951. The present
the boom, built like an elongated sale of industrial
vibrating equip¬ dividend rate is
$2.40 and the
hinged, box kite, as it was hoisted ment, power units and
tools, and company paid "a
60c
year-end
into the air. It looked to be about concrete
equipment.
:i;
extra in 1955. Such an extra, or a
80 feet long when the first red
An important ingredient in the larger
one* could easily be degirder was attached to the hoist¬
sustained success of Link-Belt in lieverd this
year on the basis of
ing hook.
Slowly, day by day, the
traditionally cyclical field of fine
earnings and
sturdy
cash
the
box
like
skeleton
of
the
capital goods, is the fact that it register position. The common is
building materialized with gir¬
has offered a steadily broadened .listed on the
N.Y.S.E;,
where
it is
ders, upright and then transverse,
line of products to serve the spe¬
currently selling at 70 to yield ;
and floor by floor, being fastened
cial needs of a great variety of,
4.30% (assuming a $3 dividend).
into place by riggers whose aerial
companies
and
industries, v For Dividend; pay puts have been
dexterity makes Tarzan .look as
example, in power transmission, averaging about 55% of net.
agile as Tony Galento.
it offers roller and sprocket chains
Nineteen plants, including three
But I disgress. It was the ma¬ and chain
drives, couplings, pul¬ in Canada,
and
one
in
South /
chine we were talking about.
It leys and gears.
Link-Belt ma¬ Africa, turn out the diverse prod¬
avation
x c
e
of
resume
a
Bradstreet, considered the nation's
year
this
Index
Production
Business Failures
)
>
in pre-tax margin for
past decade.
log
the
by
has
company
10%
;
i;
In
as
j-i
Trade
Price
Food
'////-/.'7/- '
illustrated
that/the
Retail
Commodity Price Index
specifica¬
management appears
been
be
may
the
"side¬
of
1
Production
Electric Output
Cat-loadings
new
///'/.v,;. /.;••
year.
nothing that is sold in department
stores or super markets, or that
is advertised over TV, you may
not have heard very much about
ens
enough
diverse
Moreover,
Steel
-
State of Trade
and im¬
proved products are being intro¬
duced by an
extensive research;;
program,
and
capital
expendi¬
tures running around $2 million a
proves
and
unique
in
common,
Zephyrcrane. It costs
a
tigation,
is
As
annex.
called
$58,000 and it's made by LinkBelt Company, which upon inves¬
such
to
tions.
machine which started off all this
piece started from curios¬
This
tailor
flexible
and
enough
current information about this distinguished
specialist in power transmission and the handling of materials.
Conveying
j
'
'
The
6,1956
Thursday, September
.
e
or
pitch to the installation, or
higher or lower power and speed
requirements are met in each new
sales solicitation. Link-Belt is big
Enterprise Economist
as
..
(978)
.
NEW YORK 6, N. Y.
Telephone DIgby 4-5544
26 \
*
Volume 184
Number 5566
.
.
The Commercial and Financial Chronicle
.
/
(979)
Comment
A Word of Caution and Praise
All
the
on
of
agree
nomic welfare
depends
production and
it takes both to
nomic
By PAUL M. MILLIANS*
Vice-President,
for
economy
Millians refers
not
of
out
to the
its
own
thought of
newer
class
further
sees
limit
no
economic
to
growth
long
so
viewpoints do not prevail.
I've
wanted to be
never
caster any way,
unhappy
life
right
now
bad
spots
for it :is
at
a
best;
when
fore-
a
:
short and I
more
^especiallyjThen
pf
trends,
an
inougni
on
After
increasing
debt,
consumer
this
you
of
I
want
suggest
ob¬
servers
plexed
the
?«?«
than
than
recent
the
proud
in
wr.at
faceted,
mond
Paul
dia¬
M.
colors
determined
by
facei:.
each
the
angle
gle^of
con¬
should
we
occupies
with
Omar,
*
a
fbat.
that
best prophets on matters ecofeel that there will be no
nomic
growth
bunching
or
sufficient
to
cf
the
cause
of
spnse
as
ly
one
though
Credit
earnest
whether
on
or
too
something
National
^
or
debt
consumer
other
Product
like
or
he
hi
is
Paul, would
f
ho
the
win
f«slr/v
Cardinals
Series.
the
brother,
four games and
LClvp
^
Gross
For
We;Ve
'
did;
when
and
a
the
"Dizzy" and Paul did and
Cardinals
other
tvia
would \ take
he
1
and
t-*lL
ak
while
-'
j
0ped *
a
"hen
and
On
asked
onions you
of
some
wurn't
about
idea
—...
has
devel-
_.a
«
considerable
amount
„
are
the
you
-
bound to be right
time; and^ if you
just don't remind
,
I
a
talk
should
no
like
the
address
to
42nd
Credit
Annual
by
Mr.
this
sumer
others
and
that
speak with
International
Conference,
St.
Louis,
before
Consumer
Their
into
creates
ployment,
credit
consumer
the
1940,
around
first-class places: Not
"Fortune" Magazine in
1940
of
on
demand
which
in
production
and
-
-v
to
thus
pay
the
the
since
payment
"the
credit
member
of
our
•
:
know
be
morg
recent
Ltensivelv
until
arf
What
Credit
From its original
Accounts
0f
0f
individual
proportion
AND
to
fmporS
We know very little about the
breakdown of consumer debt. This
-
consumer
_
,
debt:
is
part
"mqlti-pronged"study
i'i
j.-a
of
of
the
con--
:
cr'edifnow being carried"on
by the Federal. Reserve Board.
Moreover, statistical history of...
i_„:
sumer
fers
contrast
poor
and
use<
^
.
-
question
very
discussed
*
earnings
promotion
sr
with
of
today's
consumer
-
...
:
Consumer Debt Not Out of Line
How do
picture. Let
me
elaborate briefly.
we
tistically
we
measure high? Staknow that since 1940,
the last normal pre-World War II
f Reading a
business
year,
Harvard
the
total
of
con-
;Competition
and
cattle
Santa Gertrudis herd
cause as
would
he says,
like
to
We
are
pleased
Review,"
to announce the
have
as
t/';
manager
of
our
Even
morticians
are
If
there's
any
excuse
September 1, 1956
i
—i—
—
—
:
:
.
,
-!
>•
t
...
men¬
"lay-away" plan, it
is that nowadays with time-credit
Continued
we
on
formation of
appointment of
Dallas 2, Texas
PHELPS
n. y.
for
o tr
this
us
new york 5,
th^
T
Angeles advertises, "Use Our Lay<
Away Plan. Pay now. Go Later/'
department
Telephone digby 4-2410
thesj
in
Onr
Municipal Bond Department
Bldg.
of
time-credit
business: One in Lg j
An ffola? o/ltrorficoc
"TTcq
MUNICIPAL SECURITIES COMPANY
and the
<
pure bred
one
income
production in the first
"" Viv'7 \v' r '
m
on time, beA lot of farmer I
em¬
debt that
man
bulls but they just don't have tha
cash."
--
tioning
Credit
recent issue of "The
Business
a
»
credit. The past is not present in
the contemporary consumer credit
..
Mexico-bulls;
t?pJSai!aiiP ?ns
H°p° bulls from his
INCORPORATED
44 wall street
"revolving
Siven period of time?
600 First National Bank
BYRNE
of coninstalment
credit accounts," now widely used
D. Edward Walton
associated with
nro-
area
MUNICIPAL SECURITIES COMPANY
are now
in
than
sales hav-been
other assets, the kind sumer durable goods,
employment and income back: credit-has spread to
With
more
and agsressivelv
or
transactions?
—^
y
motecL
the i.collatoali.
far
vears
saie
credit"
thprpforp
historically^^credit
un-
■
nothing
and
salej
worKine
instalment
Therefore
total debt
can
of
F. Coss
sales
per-
totaj debt of the individual and for time-payment buying of nonhis living costs considered, are durables: From its original area
these together in some convenient of durable goods to all manner of
con-
Musson
'
long ago
article,
an
most
as manager of our trading department
and
a
some very
working
miracie
wonders
Revolving
latiqn:
vaihes
we are pleased to announce that
Walter
be
opinion
calls time-
INVESTMENT BANKERS
F.
even
to
an
Why Do People Buy?
/:■
James
to
numerous
"■
is
future
and
which
started the
reasoning
the
creates
place.
Mo.
credit.
buying
turn
Millians
too
country is due to, consumption
coming first through use of con¬
time
first
-
really
that much of the present
broad-based
prosperity
in
t:is
with
♦An
total
no
contend
leave
pattern:
-
-
of
egg"
these
frequently
*
question of size of
f
it
Nevertheless,
we
year's forecasting to
get to our topic.
As
un
y
the
"
^
the
thinking about
afterward," which comes first, production or
"Dizzy" said, "You can be a crystal
consumption, which one makes
ball gazer if you want to stick
the other one happen, some inyour neck out. If you know your
terpreters of the current scene
was
We
ex-
elusions.
any
country in the world."
-1
-
And
kitchens,,
first-class selling tool;
which finds support in
way
billion
$17
sound,
sound.:
^at
with
America
of $28
least
are
a majority of Americans have be-
bHaUi.n.f^ri7e
between
"billion" in"
addition
m
—
steel
over
a
goods and services—"Trip-Credit'*
Someone cards, good in hotels, restaurant.,
referred to this time factor, debt even florists — hospital "Courtesy
come
profligate rspenders
and maturity
as
"debt comfortably
Cards" — home decorating and
ap°st!es of tHe full Use of their
consid- home repairs - art; art is not/
credit resources, and that we in eration in any debt structure.
v
sold ?.n tlme ln Taos, Nev/
3mP
a
ence
of
found
$36 billion
some
$19
transactions supporting
Economists, after-all^ are?, indi?? S' "p0 economist feels that
fineings sbau-d agree with
° 3ny
S economist
^ o?^f.UTTiei^-S a.pPea^more
for
his
and
million
seven
More in recent years than ever
before American distribution has
high" is what's down underneatn.
i
that
SI ^
deep
freezers, washers and dryers, and
a host of other new and
improved
Obviously if 99% of the individual
truth.m^the observation.
.
body
or
think
«n
disposable
T
q
than
■
billion,, or
62%, is due to higher prices.
high in relation to
over
sav
•
■
PutVanother
growth
at
using
men
'
woriH
prices:
thet?. iS
some
an
of
skin
more
we^aThopeVr"andles"rve^n
this despite
say
debt of
consumer
information differ wide-
same
too low
call
wehave
we
mnm
,
the
American production. Notable,
opinion to the ccmtrary^
'f Sf .testim^ .°,f WiHiam consumer credit management have
pressed by a distinguished fore-^C1rr> Chairman-Presid^ent^ Cen- been guilty of high, wide and un"dLz^"^^Dean
f1?1
Tlle arldK?lubber
Company:
curbed neglect of .sound credit
I have heard
him
the years principles,
1 haYe
heardHnzen
him nlatforms
the .years
remember L'v
back when St.
v; from
that. prihciples7:^r-.;7^;:7:^;.>>;Wp mnnnt vpntnrp far
Knifwthl: ?5f;om a„dozen platforms that, . We
cannot venture far with an
Sfj'
^
pvp^
World Series,
t
t0 f1Ve+T,Cr^ t0 ^anYnatl0n Gf these arguments:
Dizzy
told every- the little fellow
marks the differ- We do have time
possible—and
time-pay-
some
.
tive;
standards of living, and
that only by use of such credlt
the
on
the
«rw
o
old
oc-
se-
rious trouble.
*
Though in the true
JlT
rfnl h'f J
r
P"nt Oftea enough is that" today's
re-worked
ranks .hjSb as a device to improve emotional than objective.
bad
any
^
of
sales, or* to
up—products that are
largely sold
fact well known but not found in
we
of
to
been
prod-
about,, a'
obsolescence
increase
vo.nrrj
'some
bringing
products
Furthermore, when we condi¬ products
thinking to inflation a list, •'■■v'''
the
And if
ha£
new
progressive
tion'our
debt:
in
and
the
ap-0|S^| a d
add
has
mouse
$17 Billion Due to Inflation
J1-
However,
fpots
from
ucts
own
r®>"
,
line
constantly developing
°n
about."
Consumer
continue
con-
pro-
under
prmxtth
who knows;
someone
talking
rnrniRP
a
Notwithstanding the proud place would'be. only
may
consum-
in
my
economy,
Witness for
Millians
proach.
our
he's
consumer
^
credit
changes
distribution
pressures of competition have impelled a greater use of consumer
nf
suasive element in distribunuti.
arguments come out at about the statistics pt
of'co^umTr
growth of
consumer suasive element in distribution."
Recentiy "The Wall Street Jourdebt?
The important question on
oL °!.W_
ey, W.ent: debt?
The important question on nal„ in , credit story carded the
Son\l ar^ rational and ohiec- whether consumer debt is ."too line "the miracle
reflect¬
ing various
7
the
in
today's
<
elephant.
an
economy, there is much argument
with
credit
consumer
the -word of
business
a
a
n
size
:"'-£re¬
consumer
and
and
^ttfwert®
.
^
consumer
speaker slipped up and said, "Take
outlook, is
like
place
cupies
years
many
express
consumer
duction
; And °"ly relatively can we un" saIes wlu be somewhere around
derstand anything—in
relation
to a thousand times seven thousand,
hoc
ciHn
thnr»
the
.
„
^
mnv-
prejudiced 7"convictions
future.
More
to
today's
relative
debt, if we measure the $6 ment plan. You will think .of a
billi0n increase <im< 1955 against dozen such products—televisions;
d*P°sable inc0me « amounts to
creates purchasing
creates
purcnasing
millions whether they
tsiiAstJ™
talk^pattern,
our
.
rather
per¬
o v e r
the
about <<dangerous growth" of
con-
nrofessional
COn" <<ab0utmntinno
U and about":
_
business
bv
or
credit
uir
Pavyi-
.WW?"
share
to
a
of my hopes.
some
'
came
across
a
mouth-filling but
meaningful term, "Innovistic Com-
ers; and with a11 the talk we hear keep
Consumer Debt Arguments
growin
sumer
have
number
oi
^,mpr pLdftUtrpnd?
credit trends.
n,f licting
c o
I should like to assemble
pieces
the over-highall economy,
of
centage-wise,
whieh
on
spot cash or not, and
tremendous force of this on
background. 5
as
that
called "ability to pay" of
sumption is undeniable.
S^p!anft3^^f°^
in
.
for
power
credit,
consumer
less
or
power
have
;
pride about
■
an-
debt is not out of line with expanding dimensions of other credit than ever before,
measures of the economy; perAmerican production
*
*
answer
debate'
sumer
credit
austere
as
know
magnitude
b But one'we don'J
andeintrigutag tL^ehththarfon®
risks;
poor
also
economists
production; cautions
to
mort-
billion in 1956. On the other hand, innovations
to
thought
production
we^mi^
first
sumption
line with the economy's
mass
final
comes
1
wages.
Anv
debt's ability
believes such debt is
against unwise competitive credit extension
newer
of
other story) has multiplied nearly petition," and with this as a re¬
five-fold: $8 billion in 1940; $36 minder we offer the thought that
before the actual fact
user
through
a
selling tool, making possible
are reactions
purchasing
expanding dimensions;
price inflation bite of $17 billion out of total
$36 billion debt; claims, more so than ever before, it is a first
points to
both
(exclusive
debt which belongs to
production
has
created
the. debt equals about,13% of th^,anequivalent purchasing power nuai disposable income, the so-
consumer
of payment;
means
upon
debt
sumer
f>age
of
controls, but does endorse objective and
serious study of the need of
government credit control. Mr.*
to generate
cycle; they
for its
credit
consumer
eco-
is
that wide
use
of
instalment
credit in its variety of forms ereates authentic
that has shown one of
the finest records under
private management," despite its imperfections, Commercial Credit Vice-President sees no need
our
Thought
that
consumption, for
complete the eco-
each other. But the
Commercial Credit Company, Baltimore, Md.
| Praising "a phase of
Newer
course
7:
Telephone
—
Teletype
—
PRospect 3471
DL 558
page
13
Financial Chronicle
The Commercial and
$
.
,
Thursday, September 6,1956
,
(980)
Capital Airlines, Inc.—Analysis—John H. Lewis & Co., 63
Street, New York 5, N. Y.
States
Carrier
Public
General
be pleased
Corp.
Utilities
in
/
ton 7, D. C.
Chemical
& Co.,
14 Wall Street, New York 5, N. Y.
Broadway, New York 6, N.'
Fire
Casualty
&
half
first
Letter
New York 5,
Burnham and Company,
—
N. Y.
Co.*
&
17 Wall Street,
Life Insurance
Company,
per
Stocks
15
Hull
3070
:
New
York 67,
N.
Y.—$1.50
Index—Folder showing
both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc:, 46 Front Street, New
York 4, N. Y.
"... .v •"
-■•''J./'-/v!
Philadelphia
Banks Stocks—Comparison of 12 largest Phila¬
delphia Banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
Pocket Guide for Today's
securities
selected
Investor—Pamphlet containing lists
for
income, growth and trading—
Co.—Analysis—Amott, Baker & Co., Inc., 150
''Gleanings"—Francis
I. du Pont & Co., 1 wall Street,
New York 5, N. Y. Also in the same issue are brief data on
Dayton Rubber Co., Federal Pacific Electric Co., Hoffman
Electronics
y
J
4:;4)■„ 4' ,:«4 7?
;■
44
4:4:
Corp.—Memorandum—Moreland, Brandenberger, ; Currie, Bank of the Southwest Building, Houston ; t ;
" 4;'
memorandum—May
Company—Card
&
Mass.--;.'4"';-.-/v->'-^
Si Vaughan Walsh
MONTREAL, Que., Canada—S.
Vaughan '• Walsh f has
been 1 ap¬
pointed sales manager for Charles
King & Co., 455 Craig Street, West.
'
Deane & Scribner,*
4
Also available are
Pittsburgh 19, Pa.
Co.
Company—Report-^Muir Investment Corp., ...
Marys, Sari Antonp-5, Texas. Also available 7 -
Edge water Steel Company and Wyckoff Steel
101
North
St.
is
report
on
a
COMING
EVENTS
\
Frigikar Corporation.
In
Corp., Pennsylvania
£
Trinity Place, New York
—
120
Charles
Pfizer
;
—
Sept. 20, 1956 (Des Moines, Iowa)
Iowa Investment Bankers Asso¬
80 Wall
,
Des
—
Refining
Williston
R.
Co.—Memorandum—Goodbody
>
4
&
&
Co.,
115
Co.,
50 Broad
Corp.—Memorandum—A.
T.
/
'
Colonia
N.
4
&
I
Country Club, Colonia,
J.;-
Oct.
.
: •
.
4
"
(Detroit, Mich.)
4-6, 1956
"
of
Association
Arthur M. Krensky, A. M.
Krensky & Co., Inc., Chicago, who has sent in an advertisement
This week's tip of the hat goes to
Firms
•v3i
Hunt,
;
Co.,
'
24-27,
Exchange
4/4
■
1956
Calif.)
(Palm
;
,
Broadway, New York 5, N. Y.
v
(New York City)
Nov. 14, 1956
Stock
of
Association
Firms
at
Convention
Annual
the El Mirador Hotel,
Company—Report—Laird, Bissell & Meeds, 120
_
Sprtnfi,
National Security Traders Association
;
Inc., 120 Broadway, New York 5, N. Y.
Stock
meeting of Board of Gov-
ernors.
,
Street, New York 4, N. Y.
Bankers Trust
:<
^
Corporate Transfer Agents' As-.
sociation 10th annual outing at
Oct.
Geyer
•
-v
Sept. 27, 1956 (New York City)
115
Bank of America N. T. & S. A.—Memorandum—Walston &
at the
Country
Ding" at the Forest Hills Coun¬
try Club.
Street, Savannah, Ga.
Corp.—Report--General Investing Corp.,
Street, NeSVVYork 5, N. Yv
^ 4
Broadway, New York 6, N. Y.
Copper
and
Racing
AD LIBBING
Cyanamid — Report — J.
Broadway, New York 6, N. Y.
field day
Golf
Rockford Securities Dealers As-
Inc., 225 East Mason Streets Milwaukee 2, Wis. Also in the
issue is an analysis of Lake Superior District Power
American
Moines
sociation seventh annual "Fling-
Johnson,
same
Company.
annual
ciation
./
Sartorius & Co., 39
Memorandum
:
v\and golf party at Orchard Lake
: County Club. *
-
—
•
-i/m,j Sept. 27, 1956 (Rockford, III.)
'i\
-
,
Inc.— Analysis
Co.,
&
Mich.)
(Detroit,
1956
18,
Bond Club of Detroit fall outing
Lane, Space & Co., 101 East Bay
Southland
\r%
^
Sept.
Also available is a report, 4* 4..club,
Broadway, New York 5, N. Y.
Republic Natural Gas Company.
on
Country Club
(pre¬
by a dinner Sept. 13 at
University Club of Chicago).
ceded
the
Co., 135 South La Salle Street, Chicago 3, 111.
Outboard Marine Corporation—Analysis—Harris, Upham & Co.,
Truster, Singer & Co.;"
N. Y.
Medinah
&
Railroad Co., Spiegel, Inc.,
Report
Municipal Bond Club of Chicago
annual field day at the
20th
a report on Goebel Brewing Company.
Republic Life Insurance Co.—Memorandum—Fahnestock
Aluminum Goods Manufacturing Company—Analysis—In cur7*
rent issue of "Business and Financial Digest"—Loewi & Co.,
Bagdad
>
Sept. 14, 1956 (Chicago, 111.)
:
able is
Broadway, New York 6, N. Y.
Electric &
Power Co.
—
;
Co.—Memorandum—Arthur M. Krensky
& Co., Board of Trade Building, Chicago 4, 111.
McGregor-Doniger, Inc.—Analysis—Unlisted Trading Depart¬
ment, Ira Haupt & Co., Ill Broadway, New York 6, N. Y.
Montecatini Mining & Chemical Co. — Memorandum — Model,
Roland & Stone, 120 Broadway, New York 5, N. Y.
Mountain Fuel Supply Company—Review—First Boston Cor¬
poration, 100 Broadway, New York 5, N. Y.
New Pacific Coal & Oils Limited—Bulletin—De Witt Conklin
Organization, 100 Broadway, New York 5, N. Y. Also avail¬
Mages Sporting Goods
S. Industries, Inc.
Aircraft Radio Corporation
Atlanta
Field
Investment
& Co. Limited,
King Street, West, Toronto 1, Ont., Canada. Also in the
same circular is a review of the Canadian investment picture.
Savannah
74
4
J
r
Co.,, American Express Co. and Collyer In- ;
Wakefield
on
Street,
i
Gannon, Inc.,-140 Federal Street, Boston 10,
Old
Seasonally Favored Stocks—List of suggestions in current issue
U.
v_
Lorado Uranium Mines^ Ltd.-—Data—Burns Bros.
Harris, Upham & Co., 14 Wall Street, New York 5, N. Y.
and
,4
Lone Star Brewing
up-to-date com¬
an
used in the National Quotation Bureau Averages,
of
'>;'T7V
Union Trust Building/
copy.
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
«•
,
Investments—Study—Sidney S. Ross
Avenue,
Auchincloss,
44
Over-the-Counter
of
;
Broad Street,
—
—
a memorandum on Hilton Hotels * ;
.-/4J:
-j. - Z
Texas.^4..^7.-4^yy--yj • yy
reports
as
•
,
Wire..;
Ileywood
•'
Current information
—
Memorandum
Latrobe Steel Company—Analysis—Singer,
Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.
Japanese Stocks
—
New York 38, N. Y. Also in the same bulletin '
Armco Steel Corp., Bucyrus Erie Co., San Diego
Electric
&
4 Johnston &
61
4 i2,
1956—Kidder, Peabody & Co.,
5, N. Y.
.v * 4
on
Gulf Sulphur
Y.y'/.
of
New York
Foreign
Gas
47 sulated
Companies—Operating results for
Insurance
data
are
:
Smith
-Stores—Analysis—Zuckerman,
Department
&
Broadway,
\^'/
; ;
.
R. Grace
W.
Pharmaceutical Industry—Report—Smith, Barney
&
'
New York 4, N. Y.
.
Inc., Department C, 1033 Thirtieth Street, N. W., Washlng...
Corp.
;
•'v *"•
Glidden Co.—Memorandum—H. Hentz & Co., 60 Beaver
Canada, etc.
Also available
Atomic Fund's annual report illustrating atomic industry by
means of color photos—Atomic Development Mutual
Fund,
buying
"
Also available is
5, D. C.
(No. 20)—Comments on atomic food irradiation,
uranium
British
V
'
Redpath, 729 Fifteenth Street, N. W., Washington
&
Parker
'
•
Corporation.;
Atomic Letter
,
,
the following literatures
send interested parties
Appointed
By Charles King Co. t •
—
Corporation—Analysis—Bache & Co., 36 Wall
•Street, New York 5, N. Y. Also available is a bulletin on
Recommendations & Literature
understood that the firms mentioned will
Report
Corp.,# Limited
Asbestos
Eastern
to
S. V. Walsh
Mitchell's Street
Reports, 32 Davenport Road, Toronto 5, Ont., Canada—Annual subscription $50.
>■:/.'?'/•' "
"
Cassiar
Dealer-Broker Investment
It it
Wall
£
.
Exchange
meeting of Board of Gov¬
ernors.
Banks, Brokers, Dealers
Nov.
...
; ;■ 4.
Harold B. Smith
Equally Attractive For Capital Gain And Income,
*
*
.
V
:
Aircraft Radio
'
•'
r'
*
•
'
:
Arthur
Stores of
Corporation
of the Chronicle for Mages Sport
.""4 ;f>
Chicago.
(Hollywood
1956
■
Investment Bankers
Association
annual
convention
Krensky
M.
.
for pur NSTA Year-Book issue
25-30,
Beach, Fla.)
of
America
at
the
Hollywood Beach
HoteL
4"
We will look forward to
hearing from our membership about
additional commercial advertising for the Year-Book.—KIM
4 y
April 21-23, 1957 (Dallas, Tex.)
.
Texas
Group
.
of
Investment
"
•
'"V
'
Long Dividend Payer (22 Years)
.
y
■:
•
Bankers
National Advertising
meeting
at
HoteL
:4!;
•4' ^
Broadway,,''v, 4
Committee,
c/o Pershing & Co., 120
•
Consistent Earner (In A Volatile Industry)
;New York 5, N. Y.
..,.V
Nov. 3-6,
•
Association
HAROLD B. SMITH, Chairman,
Strong Financial Position
1957
the
Statler
annual
Hilton
(Hot Springs, Ya.)
National Security Traders Asso¬
r. >
•
•
•
ciation Annual Convention.
Growing Backlog (Now $6.2 Million)
Are Your Records
V
Incomplete?
Promising Future
Yield 5.3% At 17.
-
^
-
-
4
>
"FOR SALE"
A Number of Beautiful
Available—Reprint of Recent Letter
By W, F. Cassedy, Jr., President
Annual
Members:
74
n,
y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
HAnover 2-2400
DEPENDABLE MARKETS
'
Bound Sets of "CHRONICLES" of
Various Dates From 10 to 50 Years
"
TROSTER, SINGER & CO.
7K7
-
*
*s
-
-
Available in New York
Phone REctor
2-9570
City—Write
Edwin
L.
or
•
"
Beck
Teletypes NY 1-376-377-378
c/o Chronicle, 25 Park Pi. N, Y. 7
DEMPSEY-TEBELER & CO.
Volume
Number 5566
184
..
.
The Commercial and Financial Chronicle
(981)
tions rather than production. This
Consumer Durables and
change results in
lag
and other
V'/V.!
•
v
sumer
have
consumer
^
rising standard of living, is its unstabilizing effect, stemming
j
from such growth, despite discussion these days of built-in
Mr; Ballaine finds business
stabilizers.
^
comparable in
many
consumer
is believed
:
credit
that this
about
the
"
investment
sale,
goods
con¬
would
the
without
consumer *
of
not
exist¬
installment
reasonable.
This
supported \ by the high
correlation between credit exten¬
appears
of
registrations and
also by studies made by the Survey Research Center of the Uni¬
versity;' of Michigan which show
arid
the
buying
"
and used
decisions
future
contracts
sions
the
combined have been
upon
of
result
of
income
to
consumers
II
did not
contract
an
economy
more
attitude
of a consumer is subject
rapid change, a factor making
for
continued instability in
the
rate of production of automobiles
to
debt, but then the downturns in
and
1948-49
and
goods. It
severe).
A
made
by
were
not
point
Sproul who
was
different
Mr.
concerned
of
1953-54
with
the
installment
which
it
makes
WnnroHW
standards
possible
to
in-
i
«ni
+
consumer
an
altera-
: It seems to the writer that the
continuing concern over growing
+
automobile installment
•
expensive
is true that
in
financing
terms
may
change his attitude just as it will
modify the attitude of a firm
considering the acquisition of expensive machinery.
xv.
j
other
tion
sale o{. automobiIe*.
S
SorSl
was
deterioration
credit
'
pendent upon the attitude of the
buyers because financing is no
serious hurdle. The psychological
unwillingness
general
a
such
important segment of
that instability has
far-reaching effects. However, the
purchase of these goods is de-
is
of World War
in
is
our
two minor recesexperienced since
(the
have
we
end
new
cars
ex-
people
already
partly spoken for by installment
whose
consumer debt amounts to beating
the wrong horse. The social prob-
oil"ln a lem involved is that, automobiles
W1?Ch °ne
°ther depends upon
that about three-fifths of all new
respects, except that business financing
is
concern
slight decline in income
a
is
sions
''
mass
durable
of
view
*
the
occurred
ence
,
'
production and
and also eliminates
conclusions
that
view
lack of debt-willingness; be¬
lieves limiting factor in cash and credit sales appears to be
psychological attitude; and concludes the price we pay for
growing importance of consumer durables, characterizing our
compared to
as
,
relationship of automobile produc¬
tion and installment sales. It must
be
conceded. that
the
popular
will curtail auto production
limit financing available to
or
time
is
defensible
from
a
point of view and will
bias
not
consumers;
side
.
statistical
finds financing is no serious hurdle and refers to
plentifulness of funds in 1929-33 and 1937-38 on the supply
-
■
durables
consumer
we
shifting
_
It
cars.
new
University of Oregon
the
cars
sophisticated levels
pressed about the possible results
corre¬
a
variations in inventories of unsold
By WESLEY C. BALLAINE
Director, Bureau of Business Research
Oregon research director doubts
between
the sale of
Credit and Economic Stability
:
higher
a
lation because it eliminates
9
tf+v,
*
the length of
time under consider-
other expensive consumer.
durabie goods are growing in im-
and
,
portance and that their rate of
credit terms in recent ation, but is uncertain at best. If
prod^ction
will
vary
due
to
A little over half the pur¬
}£?*? would
noJj be no automobile
+
C?nS' changes in the attitudes of buyers
chasers of major household appli- ,there
just as the investment of business
paper,
but the creation of new
j During the first half of 1956 we purchase of agricultural equip- ances use credit.
varies. The assumpautomobile paper at present levels
Were acutely conscious of the fact .ment, office equipment or factory
/
;
v'v- '
tions in the preceding sentence
because
of
the
that a decline in automobile pro- : machinery. The gap between the
Regulating Consumer Credit
regarding the growing importance
duction threatened to lower sub- purchase of equipment by a comThe desirability of re-instituting mass production of cars. However, of consumer durables and their
stantially the mercial laundry and the purchase Federal, regulation of consumer now that consumer credit ma- wide fltlctuation. in rate of prolevel of gen- ' of an automatic washing machine installment
credit; has. had
a chinery has been developed to its duction over the
business cycle
eral
business and dryer by a household js not prominent place in public policy present state, it appears that the
is
not devei0ped
in this article,
a c t i v i t y./great.
Much the same argument discussion since it was proposed sale of new cars is the current hut they seem to be generally
.Consumer can be made for privately-owned by Allan Sproul, President of the immediate casual factor and that recognized.
installment automobiles on the one hand and Federal Reserve Bank of New the financing follows along more
C^V ' • v' Conclusion
credit fre- equipment of public transporta- York, in December, 1955. Concern or less passively.
Since we consider the owner¬
quently was' tion agencies on the other.
/■; • over the increase in consumer inship *of consumer durables on a
Financing Procedures Not the
blamed
- When
we
speak of under-in- stallment credit goes back to the
is
largely by retained earnings whereas consumer investment, V
is usually financed by instalment credit.
sold
-
on
years.
J16;]?
Jorganizations
.
..
mid-twenties, although it does appear that in the last couple
of
years "it is
being expressed by
mitted a
more
competent observers than
of the normal siderable attention to the "real" was previously
the case. How1956
sales to (that is, physical) > process.
But ever, \ their
reasons : are
often
be made in
when we discuss investment by either not explicit or given in the
1955. Now that consumers
in
automobiles
and most general of terms. The most
Wesley C. Ballaine
a
downturn other durables, attention is cen- common objection to the rise in
from this cause seems unlikely to tered
almost
entirely
on - the consumer installment debt is that
occur, it is appropriate to review financing side. Although the fi- of
the lack of ability by the
the
nature
of
the
investment nancing of consumer and business debtors to pay if the level of busiprocess by consumers in automo- investment is basically the same ness activity should decline. There
biles, as well as the relationship it is true that there are differ- are many possible answers to this
between fluctuations in new con- ences, one being that m»ch busi- * point, > one being jfche good record
sumer
installment debt incurred ness investment is financed by. of instaMmenlr credit in'the past
vestment or over-investment in
the business sector of the econom|y, we do not concentrate on the
part financing aspects, we devote con-
because,'
Purchases
the
purchase
of
automobiles
and automobile production. It appears that the year-to-year rate
of
production
industry
is
of
automobile
the
almost
certain
to
re-
retained earnings whereas a large
share of consumer investment in
automobiles and other durable
goods is financed by installation
credit, most of it involving a fi-
Instability
L
mass
automobiles
of
and
expensive durable consumer goods
acts that can be postponed or
anticipated whether the purchase
is made for cash or by means of
credit.
The
limiting factor for
are
both cash and credit sales appears
^^he
Psychological attitude of.
buyer,
,
for
of
Cause
so
the; charge
went, it per-
the
just
decisions
as
for
scale
to
be
important
an
criterion of a high standard of
ilvl.nS, it is unlikely that our
society will do anything, except
curtai1
national emergency, to
their production - either
directly
or
in tlT?e of
by limiting the financ-,
ing available to consumers to pur-
chase them. Nevertheless, we pay
.
,
...
,
*
*
•
„
a-pnee for this aspect of our rising
psychological attitude of the standard, of living by increasing
investment
business
the
businessman
as
he
depend
on
appraises
the
our
future. Economists associated with
the
finance1
declines
in
companies say that
consumer installment
outstanding
during
the
(no doubt due in part to the fact credit
that the debtors pay installment downswing from 1929 to 1933 were
contracts by not paying their un- not due to lack of funds on the
secured debts—almiost any doctor supply side, but by a lack of will¬
or grocer can verify this state- ingness on the part of buyers to
economic instability,
.
•
Win. H. Cole With
Dick & Merle-Smith
William H. Cole has joined Dick
Merle-Smith,
&
48
Wall
Street,
unstable; moreover, it is the nancial institution such as a bank ment.) Another answer must be create a debt,
same was ap- New York City,
the firm an17
i
opinion of the writer that the de- or finance company. Yet business that in the minds of both the parently true in the decline ot
gree
of this instability is more investment at present levels would debtor and the creditor there will 1937-38. There Has been no de- nounced.
Mr. Cole was formerly an as-»
likely to increase than to diminish, also be impossible without finan- not be a substantial decline in the cline
of
sufficient
proportions
sistant vice-president of The HanThis
conclusion
may
be gener- cial institutions.
level of business. . :
since that time to test this view.
alized to include the production of
Concern relative to the growth >
Returning to the objections to
The production of automobiles over
Bank's personal trust deall
expensive durable ^consumer of
consumer,
installment
debt the mushrooming growth of conand other expensive durable goods partment.
goods as well.
'I'1 rV ; f
should deal with the contribution sumer installment credit, at more
main
pie
~
it
Tix
Consumer Investment
^
;
Unstabilizing
•
Fluctuations
of
level
the
in " the
business
and
general
changes in
investment
of
rate
"
often
are
associated in what many observers
believe
to
be
and
cause
a
effect
relationship.^ As
here
vestment"
the act by busi-
means
firms of increasing
ness
and
sets
vidual
their
or
a
an
security
by
an
as-
pur-
indi-
institution because if
security purchased is
the
"in-
not necessarily the
of
chase
outstanding
an
used,
issue
much these
and
to
the
to
in-
lessen
stabilizers
investment
in
automobiles
not
relationship
of
The coefficient of correlation be-
only in terms of capital
goods, but retailers, wholesalers, and manufacturers invest
tween the two series is +.90 for
the 28 months beginning with
January, 1954 and ending with
April, 1956. This high degree of
correlation is a little surprising
in view of the fact that the two
series do not refer to exactly the
same transactions; the installment
debt series covers both new and
We
tend
think
to
investment
in inventories
as
well
machin-
as
accept the interpretation that there are many kinds of
If
ery.
we
investment in the business World,
we
easily find sufficient close
can
similarities
of
business
sumer
between
some
investment
investment
in
and
forms
con-
durables
so
General Merchandise
.50 Par Value
Price $11.25 Per
irregular rates means
may
be unstabilizing.
The American
increasingly mechanized,
purchase of expensive equipment for
home and family use
coming
The
*
'
appears
to
constitute investment-
in much the same way as
does the
that the period covered by
I
The
H. M.
It will be noted that the series
automobiles
is
new
Byllesby and Company
registrar
Loewi & Co.,
Incorporated
John W. Clarke & Co.
(Incorporated)
McCormick & Co.
price changes.
for
Milwaukee Company
a cor-
relation study must be short
enough to eliminate substantial
-
several Underwriterst
in such state,
Straus, Blosser & McDowell
used cars, whereas the registrations series covers only new cars,
Moreover, any price change reduces the degree of correlation
because it alters the amount of
that both credit involved in selling the same
number of new cars. This means
household is be-
Share
Copies of the Prospectus may be obtained in any state from such of the
including the undersigned, as may lawfully offer the securities
classed under the
heading. The fact that both
forms of investment are made at
that they can be
any
Common Stock
•V
same
securities.
180,000 Shares
between
°f new automobiles and the creation of new installment debt to
finance automobile sales is close,
automo-
solicitation of an offer to buy any of these
Installment Credit and Car Sales
acquisition of
goods by consumers as a form of
nor a
offering is made only by the Prospectus.
NEW ISSUE
durables, largely financed
by installment credit, we have an
unstabilizing force.
■ \
changes in the rate of registration
investment.
The
other
The
biles and other expensive durable
offer to sell
This advertisement is neither an
and
fIt is perfectly correct to look
the
s
that
the
amplitude of
business
cycle fluctuations, and
we may easily come to the conelusion that all structural changes
in our economy are of that nature,
But in the growth of consumer
result in additional assets.
upon
■
We hear
days about "built-in"!
"automatic"
tend
increased
our economy.
part of
will
it
makes
stability of
September-5, 1956
-
'—f
Walston & Co., Inc.
10
The Commercial and Financial Chronicle
(982)
Saw-industrial Stock
By COMMANDER S. A.
LOFTUS, U. S. N., RETIRED
bling them to concentrate their
selling at or near the tops of
major price upswings, and their
buying
activities
close
to
the
investors, speculators and market
flation
students.
present
profits with a minimum of risk,
One
vitally important
factor
TTnitApivinv
Tiiic
Principles Underlying This
prices often
repeat themselves and that price averages will continue to
move in cycles, Commander Loftus states "the Dow IndustrialStock Average will probably decline 88% below 525, or to a
price of close to 63 at the bottom of the next major besi mar¬
ket downswing." Article's objective is to k?!p investor avoid
bull and bear market extremism,
fo'aid in foretelling prob¬
assumption that percentage changes in
able future percentage
range
change in Dow prices* Believes
a
The
The
age
issues
majority
expressed
of
the
in the current
bKflnofmn'c lovcroct nmwc
of
the nation s largest news-
papers
by Administration officials,
corporation
executives,
financial
commentators,
and
the
aavertisements
of
vestment
inad-
visory services
will
the
for
much
higher
stock
prices based
S. A. Loftus
continue-to
ia
move
past
major
alternate
of
up
long-
down
swings.
Long
rtnnrncctAhiC
pricesv
commodity
these
profits,
con-
jatter case, a
price of 500 for
Industrial Stock
Dow-Jones
Price Average would mean a deeline of 9®% Average from its
existing price.
:
;
.
the many articles, books, and
security market advisory service
letters indicate that practically
all of their authors base their
advice and conclusions on 'the
premise that there have been at
lonef +mA
least two completed bull market
an wise investors and speculators ,Price upswings of stocks since
figure their profits or losses by its 1942; the first one having -ended
percentage of tneir invested capi- *n May, 1946, followed by .the
tal
^
one that ended in July 1948, and,
v It Seenis to me that all reliable therefore, they are of the opinion
predictions that the price of the that the existing bull market price
Dow
industrial
Stock
Average upswing started in June, 1949.
The
third
principle
of
this
study is that it utilizes percentage changes of prices for purposes
*0f comparison and prediction. One
of the big
advantages of using
.
cycles
repeals
that
there
been
.
Price Average was first calculated
riSe or decline a certain per- The record of the course of the
:and>compiled, to 195b, inclusive, cent are based upon past per- price line on this 60-year chart
there have been at least six com- formances. if cycles have been reveals that for six completed
market crash in the Fall of 1929.
P1^® major stock market cycles, operating for over a century and a cycles of major bull and bear
And, furthermore, they prophesy
ff16 .se?Pnf Pr.inc£Pie 01 tnis half, isn't it probable-that they markets, no major bear market
stock
prices, quite similar to
the "New Era" school of thought
which prevailed prior to the stock
to
that
study is that it is based cxciusively upon the prices oi tne
Government has the power- Average, and not upon any ecowill use it—to prevent such n01™p
data such as earnings,
there
be another
will never
depression in stock prices because
the
and
will
continue
to
do
so
in
the
has
til
future?
forecasts, wouldn't it be
safer to ask; "What is
Jones
Stock
Industrial
thousand
Price
Average, itself, predicting?"
This
enter
study, whose primary ob-
are
into
and
or
reflected
finance,
not
as
a
dogmatic,
#
'
.
•
_
...
_
i.
'
in
prices
those
change our whole economic sys•
.*
a
•
the
either
touch
lower
an
or
of
one
course
price
line
extent
-penetrate
the
three
,
un-
has-
as
to!
the
diagonal
-
lines<
,
1 .1S a
ovprpmnhasi?^
UAl 10 overempnasize
things
bull market price upswings; or the js
nates^the1*rmblicf^t^"near*the
bottoms
of
major
bear
':<»
i
J-iifs.
•
;
''+*4
.
-
wrong
•#'**
S-
(■,
m
.i
.
At
1
J
*
■
market
Vv-.
++%
a
inhtifiiiriiiiiiiuiii
OCT'UBkH
the period of time'
on
a maj°r market price swing has
been running, how can he possibly
downswings of prices, thus ena- make
\
■
unless
that of optimism which always pre- the importance of the preceding
affect stock prices vails at or near the tops of major points because, if a market student,
one
answer the foregoing throughout their complete cycles,
question, is submitted to the world
Two possible contingencies may
of
completed its
ever
or
declined to such
it,™
Immunize Investor From
profits, losses, inflation, political
Extremism
considerations, peace, or war. This
The main objective of this study
wiser and principle holds that everything is to immunize an investor or
the Dow- that everyone knows about the speculator to the mob psychology
unfavorable event.
In the face of these optimistic
an
■■
the question as to whether or not
the period from 1942 to 1956, inelusive, consists of just one, two,
or three major bull market upswings of prices. My studies of
*
t*tudy of
forecasts6of iective is to
increased
that
would> reduce the
purchasing power of our
befbre
security market students began to
keep records Of prices thete Were
ever recurring cycles of business
percentage
price changes rather
KnAtYto
nri/^
clllcl
Of
*
1 ^
l..a
+
J.I
A.
booms
and
aepressions, and
of
than the"number of points is that
and
1^ Hear-c^t completed
tinued peac#, and general pros- business and four distinct comperitv.
' '
■ <
modity price cycles from 1795 to
This Psychology may be desig- 1956, inclusive. Since 1896, .when
nated ag the «sky-Is-The-Limit" the .existing
Dow-Jones Stock
consist of very
optimistic
"predictions"
is thatprice Avershown-Off the accompanying
bottoms of major price downswings, thus acquiring maximum
<ibllar to only 10 cents. In which" enters into this study is
PaPer
Siuay^£js
principle underlying - the
cycles in the future as it has in %
view of the market indicates that the large rise of stock
vast
basic
this study
prices from 1952 to May, 1956, will probably be followed by
a drastic bear market downswing.
opinions
Thursday, September 6,1956
"fool-proof" method of "getting- tem in the course of the coming
rich-quick"; but as a new avenue years. First, a disastrous World
of approach to the difficult art of War III that could wipe out most
evaluating and predicting stock of out existing material wealth if
prices. In other words, it is pre- H-bombs were ""used, Second, a
sented
as
a
helpful Service to drastic Government managed in-
Swampscott, Mass.
On the
...
correct evaluation of just*
a
:l;/'■ ■'v
'
J*
TIL—*
_
—
/"*
-»
,
■</'.
.i.
-
Volume
-
•
Number 5566
134
;tt
.v.
•.
:
.
.
The Commercial and Financial Chronicle
.
1
'
■
■
•
■
(983)
where
the
market
predicting
alone
is
today,
.
.
A
Close-VJp
My
that
is
to
has
taught
study
the
me
errors
market
picture
from a long-range point of view,
visualizing its many primary and
secondary price swings for the
entire
60
stead
of
from
or
market, this Average advanced
to 524.37, its highest intra-day
years of its history in- '1956 major bull market price to
studying it so closely date of this v study,
May
1956;"
day-to-day, month-to-month,
year-to-year, only.
able feature of the
chart
is that
One
it enables
curate
.v
being
of
the
-
price of 92.7;
:
percentage
the major
change
in prices for
swings of the Dow Industrial Stock Average, the most val-
the
govern
"
*
*
v
5.65 times to be
or
joV'--:-"
*
>
■
.•••*..
v
..."
..
■■
=
■;?*•
■
in
nriros
previous
havp
P
■
major
rtown
aown.
hppn
.
up
is.
.
J
.
,
big
lesson
-
that
.
iYn
*°
market
a
.
a1
.
-
_
market
thev
much
+hrpp
rise
y
vpars
in
se
.
a
i
Y.
f
from
1Q2Q
years trom lyzy.
^ incluslve> this Average
previous"'years"of
.
specific example to illustrate
this point was the very long pe-
years' a's0-
powerfully rich investors and speculators from Oct.
1937 to April 1942, a
period of
.
a .a L
chart
to
if ° tl^
™
^
Pressures
of
the
mu-
these
,
SllGllt
sueni
IS
is
above
below
or
the
the
chart
which
Oil
on
tions
during
a
The center
4°nal
lines
increase
the
Rhoades & Co.
in
lines
are
r
member
bond
of
each
make
prediction
a
Average
upon
"predictions.".
been
while
the
major
available
market
student
to
an
in
investor
April
ap-
age
-
will
probably
rise
close
to
mean a price
approximately 555 at the top
of
the
next
major bull market
stock upswing. In other
words, its
highest price at that time will
probably be close to six times its
lowest
major
of
then
92.7
w
from
1952
to
period of about four
years, the next major bear market downswing will probaoly be a
very drastic one that will culmia
nate far below the lower
President
New
of
member
ernors
of
as
F.
Manager
department
Eberstadt
.
of
member
of
Club
New
of
vestment
ing
the
firm's
12.9 'times
highest
intra-day
Sept.
1929.
Also,
in
30
1896,
to
price
that
it ad-
.
Anniversary.
A
rl
XT
\
CI
r\
v*
XT
|«|||||
||
Announcement
.
Aug.
31.
continue
firm
is
William
the
name
Company,
Broadway,
made
H.
of
New
of
II.
offices
York
the
will
under
William
from
Got
Joyce
business
Municipal
.
York
and
With A. C. Karr Staff
the
Joyce
at
ANGELES,
Of
Utilizing this
or
same
market
strategy,
KANSAS
D.
CITY, Mo.
Kaufmann
916
have
Eisen
Walnut
.
Tex.
age
will
probably
decline
announces
&
Co.,
Building,-
:Abshire
was
That, in
\ny
opinion, is the anquestion; "What is
from
Price Average, itself, Predicting?"
the
to
the
Dow-Jones
Industrial
Stock
of
Com¬
Phillips
The
&
Co.
Investment
firm
their
wilL
offices
Mr.
formerly with Lovett
Abercrombie
to
and
J.
shortly
new
remove
quarters
and
\Y"'
ing.
ST.
has
V"
the
Mac-
staff
of
& Waeckerle, Ine.,
Street, members of
Exchange.
-
'
LOUIS, Mo.—Hugh J. Hanna
become
ward
George
Lewis S.
joined
in
Edward Jones Adds
Eisen
—
R.
Co.
the Bank of the Southwest Build¬
D.
connected
Jones
&
Co.,
with
300
Ed¬
North
Fourth
Street, members of the
New York and Midwest Stock Ex¬
changes.;';''..'.;.'
"...
Joins Westheimer Co.
-
(Special to The Financial Chronicle)
Kino- Merritt AtMs J
LOS
5
ANGELES, yCalif.—Leroy
Quackenboss has been
{° thet fgf/f«Yf
ad^ed
Inc" 1151 South Broadway-
Cp"
CINCINNATI,
With Hamilton Managed
r: *'
(Special to The Financial Chronicle)
'•
.
neva
.
to
LINCOLN, Neb.—Florence Gib¬
bons-is now with Hamilton Man¬
members
agement
Cincinnati
Corporation, of Denver.
Ohio—Mrs.
Company,
322
of
the
Walnut
New
Stock
a
NOT A
NEW
matter of record only.
ISSUE
September 5, 1956
35,000 Shares
CYPRUS MINES CORPORATION
(Common Stock)
V
($4 Par Valhe)
J. A. HOGLE & CO.
Street,
York
Exchanges.
All of these Shares having been placed,
this advertisement appears as
Ge¬
A. Klomarm has been added
staff of Westheimer and
the
88%
swer
Moroney,
—
Bank
merce
'
an
warranted
in
making
this
"prediction" today (in May, 1956):
''
Beissner
student would
be
New
Moroney, Biessner
HOUSTON,
City.
Two With Lucas,
;
Calif.—Finley
of
■
29
(Special to The Financial Chronicle)
(Special to The Financial Ciihonicle)
Bend
the -In¬
(Special to The Financial Chronicle)
-
a
Gov¬
Municipal Eond Department.
■
William Hi u0|cg
Bank
of
that
Francis I. Abshire has been elected
Vice-President in charge of their
-
Decline Predicted
;
investor
386, its
made in
its
the
v
,
below 525, or to a price of close
to 63 at the bottom of the next
1929, reveals that from its lowest major bear market downswing,
of 30 made
Board
Francis Abshire V.-P.
Co., 65 Broad¬
City, is celebrat¬
25th
of
present
Association
study of the price movement
of this Average from 1896 to Sept.
vanced
the
Club
at
that, trade group.
A
price
Bond
is
Murphy has been a member
of Van Ingen's
General Market
Trading
Department.
He
is
a
&
way, New York
and
member
a
Mr.
diagonal "The Dow Industrial Stock Aver-
line.
the
Jersey and
of
the
occurred
been
Van
or
bear market price
prevailing; and close
to 12.9 times its lowest intra-day
decline occurs in the opposite diprice of 40.5 in July, 1932." Its
rection below the lower diagonal actual rise in
April, 1956, was to
line to correct the preceding rise, a
price of 524.37,
missing the
Reasoning from that premise, the' "predicted" price by 5%.
extraordinarily large rise of the
^
price line above the diagonal line Eighty-Eight Percent Bear Market
has
has
or¬
De¬
Ingen's New Jersey
Bond Department.1 He is a Past
,"•*'
'
v ■
that
.
1942, he
500%, which would
bear
Downswing Predicted
May, 1956,
!
u. toward wa,ton"
ing this prediction at that time;"The Dow Industrial Stock Aver-
price line rises
an
extraordinarily large distance
above the upper diagonal line as
it did in
1929, a corresponding
which
J.
under¬
Bond
.
Kezer
B.
of
Municipal
would have been justified in mak-
market.
Whenever
Traders
York.
ltasin«»
H-
/
if the strategy outlined in this
diag- study, together with its chart, had
marL-of
Drastic
is 'a
F. Eberstadt Co.
T\/Tnn?niAn1
LOS
member
v
National Bank
their
Mr.
,
bond
revenue
a
York.
the Midwest Stock
upper
bottom
was
and
Security
New
viously with Daniel Reeves & Co.
limit for the top
; of each major bull market and
the approximate lower limit for
the
Force
dissolution qf the . partnership of
Joyce, Kuehner & Co., effective
of
diagonal
show
the
of
Average future event, except in the science
prices,
to
of
Association
t;
asso¬
,
Mr. Kullman
Air
Pr.lces ^"1 last-
can
average
lower
Naval
*
my (judgment, no man or
shows all the
stock
drawn
proximate?
the
Lucas,
of the three
and
who
graduated from Iona College
and began his career in Wall
St.
in
1950; with j Carl
M.
Loeb,
with A. C. Karr & Co.; 3670 Wilshire
Boulevard.
He
was
pre-
the
of
the
partner in John J. O'Kane,
Co. for over 30 years.
He
any
registers
upper
of
son
Philip C. Kullman^" Jr.
a
&
Donald
these major price
period of 60 years.
one
the
,,
makmatt-
astronomy, with 100% infalmajor bull and bear market price libility. Therefore, I wish to emswings and most of the important phasize the word "probable" used
secondary or intermediate reac- in connection with the following
swings for
is
A. Narmore has become affiliated
To further clarify the
foregoing
points I wish to cite the record of
on
Kullman
Trustees, Municipal Advisory
"predictions". Council of
Texas/ •
^
':.yp
as to just how
long the next major
The investment banking
firm,
bear market downswing for stock
with offices in the First
industrial Stock Average is "predieting," I wish to state that, in
diagonal lines.
the Dow Industrial Stock
•
was
scientific
any
,
„
line
of
Jr.
World War 11
counter, pressures may be
Prior to writing down my opinby the distance of the ion as to what the
Dow-Jones
hieasured
price
partner.
1
——
upper or lower
partment.
was
Building, Dallas, will corimendous and irresistible counter
.iaA btock\
^uct ^ay to day trading operations
pressures
built up or generated
yeafs .to comPlete lts maJor in Texas municipal bonds, spein
the
market
itself'r opposite
?ulJnIYarIlke.t uPswinS from 192I cializing in general market names
to
the
prevailing
price
trend
'
Yi °Y y ?ur yeYrs and: and will maintain an adequate
when nrices ranse far above or ei£bt nionths for its next major
inventory at all times in order
below the diagonal lines such as
market uPswinS from 1932 to effectively, to serve both buyer
,»,;„« +i—
non
1937.
occurred during the years of 1929
and seller, Mr. Walton said.
;bnd 1932, The force or power of
Dealing With Probabilities
j
O'Kane, Jr.- & Co., 42
Broadway, New York City, as a
l?ite
gin during
of
J.
Mr.
Can-
with
in
as
ganization's
and
o
Guernsey has become
writing
Robert N. Kullman
John
served
jp
G.%
spe¬
«-nristian Uni-
sociated
F.
Department; and Richard
cialized
Christian TTni
+ h e.
Market
Department; Edwin
ciated with B. J. Van
Ingen & Co.
after a number of years with The
First Boston Corp. where he
:
graduated
from Texas
.
Guernsey
General
K
h » a t
jnfant
T.
the
Murphy, Manager of the Trading
Department, L. Walter Dempsey,
President of the bond firm, an¬
nounced today.
n*cipa 1 bond
versity
municipal bonds, have
David
of
.
Manager
as
Ingen & Co., Inc., 57
Street, New York City,
dealers in
Bond
municipal department of Moroney,
Tbls Dow IndusAverage
required
tre-
B. J. Van
William
Kezer, Manager of the New Jersey
National
the
with
Syndicate
-
reveals
associated
Manager
more recently was Manager of the
,,
fOfG,! tfliS' StlKly
study
Cyclical
become
"predict"'what
r
swings will require for their com-^
point clearly.
to Measure
Counter
y
.ff'
ing
The
and
J studies and ex-
,
?ar>°d
years,
chart reveals this
used
•?-
P®Worth
which laid the
extremely strong foundation for
the
major b.m
mn,^
rid
in
prices since
How
Indies
mv
and
has
Kullman, formerly
Loeb, Rhoades &
M.
B. J. Van Ingen Makes
New Appointments
appointed
,
riod of accumulation of securities
N.
Carl
Co.,
^entirely possible a™n
?Jm! 22 years of rising waitonwas
c"u'? be wlPed out
three previously as-
A
four
with
"
preceding major bear market bot- declined below any previous figtorn; or the period of distribution
just prior to the most recent ma-1 ? *
previous years 01 ris
risjor bull market top.
'"g Pr'ces' "
over
O'Kane Partner
Robert
D. E.
r^ajor bull market upswing. Note
;
Robt. Kullman Now
,
Municipal Sees.
maJ°r
bear
rapidlv than
y \ ;
a
111
i£
many years of accumulation
there has been at the
immediately
wise
any-
market upswing.
prices can and do move down
m
how
by
be
Walton
,
more
fppfnr
iactor
as
world
fudent may learn from this Dow dep^tment
Industrial Stock chart is the fact Mr. Walton, a
in
swings,
spfnnH
second
this
10%,, then time will have proved
value of the principles and
strategy described herein. Therefore, these same principles ".may
-J V\
.
.
One
.
price
Thp
ine
certain
in
Mr.
Percenta,e chan?es Repeat
Themselves
,
percentage
or
or
exact.
probable
future percentage changes, up or
down.
The first of these factors
Is: how
large these
changes
as
the probable future highest price
of this Average will be at or near
the top of the next
major bull
change of prices
down.
Average.
It seems that
factors
be
r®vea
* a
a 7
Co.
blstory does vnot -repeat
DALLAS, Texas-r-The Municim^Jms" °.^ Pnces» per se,
lf °/ten d°es so m ter™s of Per~ fal Securit.ies Company announces
rentage changes in prices, up or the association of D. Edward
percent
this
two
about
the
^U?y
uable feature of this study is that
of predicting the probable future
for
ipciriD
;
price
major
-
ac-"'
fairly
a
•' >
-.
is
then
very close to 6 times its
1942 lowest intra-day bear market
market
a
•
record
is exactly -12.9 times that
price of 40.5. Also,: this price of
valu-
.
Aside from
:
which
accompanying; 524.37 is
student to acquire that broad
per*a-P +V*a. mavlraf
7
spective of the market.
'
cnanfitm
It
thingcan
that
there is going to be another
major
tinuing this line of study, it is-bear market downswing of stock
a significant and almost uncanny prices
some
time in the future,
coincidence that from its lowest and, if, at or near
the bottom of
intra-day price of 40.5 made at that bear market, the "prediction"
the bottom of the 1932 major bear just .made
materializes
within
-
__t
to avoid such
way
1921
major bear market
price of 64, it advanced to almost
6 times that price to 386. Con-
Distant View
vs
experience
one
lowest
let
its future course?
.
11
and
♦
The Commercial and Financial Chronicle
Banking in the Decade
—
T VI rv 11C trial
lllUUall AIU
Pav Bill ¥
Jf or Vila
By C. A.
1965,
Ahead
.
Thursday, September 6,1956
in
an^^sferyiees*
•
$2,817, or 23%.
'
With
:
of
natural resources to be converted
the quan-
ium and lithium, to name a few,
think
Just
volume
the
of
into consumption goods,
and
$120-$125 billion; (2) bank
deposits to go up by $50-$70 billion to $250-$275 billion; (3)
capital structure, in view of its dangerously declining trend,
will have to increase by $10 billion; (4) a 16V2% population
increase, or 190 million; and (5) a 43% Gross National
Product increase, or $535 billion. Mr. Sienkiewicz does not
agree the Employment Act of 1946 has ended the business
cycle, but does advise bankers "we are learning how to cope
with the whistle of deflation and the gong of inflation," and
that it is important to watch the national debt and national
by $40-$45 billion to
and
credit and what new
betterment
usually
and
ural
resources,
tion
of
ties
I choose this
longer
the
stages
halting
wants in
or
society. r;
our
Right now we are in the midst
>
a
technological
revolution
New and better tools and methods
be for current
being
are
operations,1, it too limited;
a
basis for;-
and
invented
applied
with i\\c±
the mnvimiim
maximum nf
of filrill
skill known
known
txrifVi
is
to human mind
Back
of this movement lies a great urge
Sienkiewicz
ap¬
and hands.
drives free
that
men
onward
to
that we
another
that prices will con-
and
We
"ures foAew
arid
will
income
consumer
be'
■■
reasonable, and many of our
seem
that
tnat
uct, measured in 1953 dollars, in the more stable carbon, sulphur
now
will reward your efforts in the same period expanded from and fertilizer groups to over 200%
the future. Today at the close of
$105 billion to $374 billion, or £or
more dynamic synthetics,
Your
concentrated
preparation
business is
history; tomorrow will
be a new chapter to be composed,
the unknowns resolved, anticipa¬
tions
realized,
or
frustrations
overcome.
A confident hope of
_
__
tomorrow'
256%.
On the per capita basis,
thisTise
or
was
from $1,137 to $2,294,
This
48%.
is
amazing
an
achievement
ord
of
due
allowance
is
even
rec-
when
made for. the
.
piastics and antibiotic branches.
jsjew Products
continue to pour
out
iast year there were 426 of
the
essence
of
them
£qj*
The
by hard thinking and hard work,
It is a process of continuous ef-
nomic
growth
during the
next
Aug.
23,
erafjon
of
^population will increase from 163
1956.
production
the
and
Projections made by the staff
founAaddr18Dby Mir- Si.en£ie?icz a* the the Joint Committee on the Ecojndicate, that, our,
University,
in
decade is equally breath-taking.
equipment
trieil
and
ha<?
enerev
much as,any
in
'other
with
Just mention
its
related
to our steadily
appliances
.
and
.
But
most
.
.
people start thinking about
of them
cars.
duction
^
start
.
Name some?
^Well here
or
are a few
fina them for—
issues that
Company
Company
make markets in—
Michigan Gas & Electric Company
Michigan Gas Utilities Company
Michigan National Bank
,
Detroit Harvester
Gerber Products
we
'
Kellogg Company
National Bank of Detroit
Tecumseh Products Company
Upper Peninsula Power Company
Latest quotes?
Just
contact
mands
the times and
of
the
peo-
introduction of fully
production
methods,
wherever possible, is being accelr
erated as labor and other costs
rise. These factors should provide
chiefiy with seasonal credits, they
have become retail service estab-
automatic
a
high level
in
K
the
(5)
the
years
lishments
of business activity
ahead.
.,
.
....
.
..
.
than
still relatively young
forecast
even
the
cites
12%
been
smaller
fact
that
.
our
con-
seasonal conversion of
and
vital
part in our eco-
nomic life, and contributed much
—probably too much—to the cur-
less
.
,
genera-
term or capital, revolving,
upon
orous
You
percentage
..........
.
will
recall
that
<,
10
after
surviving
depression
,,,
an(j war, our commercial banks
had become large depositories of
ago,
-
government securities. At the end
Gf 1945 they held $90.6 billion of
these securities as compared with
$57.1 billion in May of this year, a
reduction of 37%. Their loans on
the other hand, at the end of the
war reached a low of $26 billion
but subseqeuntly rose by $40 bilforward march and hopeful lion, or 231%, to a record of $86
expectations.v Thejf also suggest billion in May this year This is a
broad moving horizons, opening tremendous change m the com-
war
and
is
Active
decade.
In
Trading Markets
has
ex¬
pected to double again in the next
Maintained in all
addition,
automation
controlling
productive processes, along with
the
tremendous
application
of
electronics by the military to our
defense efforts, promises fantastic
with electronic devices
(3)
mand
Extractive
BANK STOCKS
industries—De¬
for
petroleum products has
growing at an annual aver¬
age rate of IV2 times as great as
overall
industrial
production.
With
an
increase
in population
and an estimated spread in uses
petroleum
products
of
Send for
STROUD &
INCORPORATED
supply this demand.
The
and
demand
for
all
PHILADELPHIA 9
types
of
alloy materials is sharply
upward. The expansion in indus¬
trial
and
construction
projects
ore
Banks
comparison of 12 largest Philadelphia
20%
capita, demand should con¬
a comparable rate. Proven
reserves are more than adequate
to
PHILADELPHIA
innovations.
been
of
NEW YORK 5, N. Y.
Offices in 107 Cities
energy
,
years
has
tinue at
Merrill Lynch, Pierce, Fenner & Beane
f
electric
of
were
and liquidation of receiv¬
ables. Indeed, since the war commercal banks have played a vig¬
airplane and an
of po-
an
types
bankers—seasonal,
population has rent wave of prosperity.
of 4the
in
all
goods
*2^ Aeronautics ^ Adminis-
ever
;
of
mortgage warehousing, and other
varieties of loans depending for
repayment upon earnings rather
tration has forecast that air transportation hy 1965 will rise from
1^s current;i29% to over 50% of
the common carrier market. The
than
of
sumer,
Air* transportation — While
transport
industry has
tremendously
in
recent
yeaI*s, it is
making
some
tions
air
grown
-
which
scarcely known to earlier
loans,
increase
per
Trading Department
70 PINE STREET
of
doubled since the
future
Copeland Refrigeration Corp.
Detroit Bank
Bank Retailing
The
ment
industrial giants as General Elec¬
tric and Westinghouse.
The pro¬
thinking about stocks instead
about the wide variety of investment opportunities
that Michigan offers.
some
;
in sales in the last decade of such
MICHIGAN
.
as
rising scaie 0f iiving.
The concept of the "all electric home"
resulted in the four-fold
and facilities for the ex-
and development are shortening pie. Instead of being primarily
the economic life of capital equip- wholesale institutions dealing
petence in every way, they assure
rontrihutprl
-to all
sponded to the necessities and de¬
gen-
apparatus
of
used
Hi«?trihntinn
concern
with the
advances
pIpp-
op-
each
because we, too, must plan
us
sources
Stimulstion Of indUStriBl r6SC3lch
of
search
bank
Commercial banks also have re¬
the
growing
ever
products and new meth—
figw
of
needed
new
facilities and replacements
are the main sources of demand.
tential air freight has been tapped.
The embryo intercity helicopter
service with its. bright future
win. Sive an additional boost to
industry.
.
These five examples represent
giant stars in our industrial constellation. With the growth of our
productive and technical com-
violence caused by two great wars ods assures a most promising futimism, a pioneering adventure and the unprecedented depression ture for us |n £^e chemical grea.
that gives zest to go forward.
of the 1930s.
/2)
Electrical
products
and
Economic progress is propelled
e
outlook h
for potential
T
eco- '
electronics—This industry, steeped
is
coneres? the vast outfavs planned
'■"
Pr™a-fSLi?n
Technological
over
be
and prepare ourselves to face new
.
their^bcdicie^and^lans wfth^he
obiecttvtv
andthedrive
objectivity
and
the drive
our
characterized
of
:*???«!a
croorinc/
In/^iiofrioo
amount
will
this is of immediate
equipment and ma-
chinery assure continued capital
fairly steady, expenditures substantial, and sayings adequate to
r»r>r».Mrio funds
fnn^c for
frtr* irkr»cr_t<xrm
in.
provide
long-term investments.
These assumptions
the
of
that
sustain the anticipated ex¬
pansion. We can only -make rough
guesses.
We do kno.w, however,
that the projected growth will re¬
quire a tremendous amount of
money and that it will take great
managerial skill to handle it. And
expend-
Projected
—
finan¬
year to
,ir.
machinery
,.
,
credit
advancement.
...
also must as-
~
„
our
our economic arteries are
hardening and that we are facing
economic stagnation,
reasonably
is
costs
balanced.
well
imposes
our
Naturally it is extremely diffi¬
that
ductivity will continue upward so
that
the
relationship
between
prices
industrial
all
cult to make any dependable esti¬
mates
They completely shatter the nonsensical myth of a few years ago
war;
bellwether of
a
on
handling shorterterm credits, such as commercial
banks. Our concern here is primarily with the role of commerrial banking in this project,
in¬
major
will be
future
.
.
industries
deed
,
,
play
institutions, but more partic¬
on those dealing with sav¬
ings and long-term capital invest¬
and
course, we must assume
shall
manage
to avoid
progress
praisal. In¬
.1''
i?-L7V*-''
build a better future.
This urge past decades.?
,.,,v,,^
creasingly, we are expected to
plan ahead, to make extended increases in direct proportion to § Let us take a quick look at some
projections to help managements the increase of
Population a£d of the basic industries and what
^
in deciding capital expenditures, its desire to do better than did the
doing in the mardh of
financing programs, "locations of preceding generations.
This has industrial progress. ;:. ■
:•
new
facilities, diversification of been the history of our economic
Some
Basic
Industries
>-■
i* v. •?>\ ju*
products and services, and new pifogress. -.
business developments.
(1) Chemicals—Through its emThe Record, and the Outlook
Present
indications
certainly
phasis on research and developThe growth of our population ment
the chemical industrv resuggest many changes and new
tn the period of 45 years, 1910 to
cently has grown much faster than
developments facing us in industry and finance. You are young 19p5, was from about 92 million to industry in general. Since World
and fast on your way toward mal.63 million, an increase of 61 mil- War jj sales and earnings have
turity or the prime of your life. h°n or 76%. Our national prod- increased from roughly 100% for
—
fears
arousing
extractive
The
periods, itures and disbursements will be
largely without deficit financing;
of
may
economic
ade¬
..
short-run
analysis
projected goal, of
liv-.tinue relatively stable; that labor
This supply will be adequate and pro-
this process has been as irrepressible as are htunan needs . and
a good reason.
Important., as
new
who
us
cial
fabricating terrors. This is a new
field of untold promise.
Prices
Stable
and
War
of
means
a
«
andTqSpmeH?
many
range
of outlook for
condition
ments and those
modern tools with which
many elements of nature are construction, plant and equipment
transformed into
useful articles and inventories Will bp at hi^h
for the benefit of man.
Despite levels; that government expend-
bankers.
This
heavy demands
oped and used , for beneficent,
peaceful purposes of mankind—in
medicine, in agriculture, in industry—instead of parading it as
the
store for us as
cilities.
*
require for plant and tools - and
processing of goods. We can truly
say that we are on the threshold
of a new and exciting economic
quate
in
are
'■
ularly
No
and
energy,
realities.
new
are
wisdom in the world, we are told
that nuclear energy c^n be devel-
applica¬
efficient
human
they
well-being.
Think also
of the amount of financing it will
through the effective use of nat¬
responsibili¬
tunities
names
national
achieved
is
longer merely romantic
in the industrial world;
no
are
Under conditions of sanity and
To attain this
ing standards of the people.
oppor¬
and
^ The industrial expansion en-"
visioned by our economic authorities in the next decade, of course,
cannot come to pass without adequate financial resources and fa¬
era,
the amount of income gener-
adventure.
rough word forts to improve the average
picture of what seems to , me the
hnUc
fnr
hnniHnc
decade ahead holds for banking
„
today and tomorrow,
ated to sustain our individual and
product ratio.
a
of the atomic
the dawn
the rarer metals are in expanding demand. Uranium, titan-
■
tity of human and mechanical energy to be released in the process,
paint
opportunities
new
must,
t
to
Philadelphia
National Bank of
In
want to
up
responsibilities for all of
^
mercial
increase
in
In-
dustrial experts predict that con-
constant
*■
■11
-
portraying the future heavy demands to be made upon com¬
banking, on the basis of assumed growth pattern,
Central-Penn National Bank head predicts: (1) loans to
I
16%%; ^>The. .value of -all of its thousands of forms.
or
•goods
SIENKIEWICZ*
President, Central-Penn
8
.
dollars is expected to rise from sumption of aluminum will double our part in- the realization* of
llflVfCf AllAflOll :$374>' biHion to $535 billion, or in the next 10 years.:;pther;TYietals what is unfolding
r^
V VAlw I
43%-j And the per capita product will benefit as more -uses are;''
i
is likely to increase from $2,294 found by our technology.
Commercial Bank Financing
m
i
m
1955, 4o. ,190. milljon in-pravides vast markets for steel
million in
.
-
.
(984)
12
NEW YORK
•
PITTSBURGH
•
ALLENTOWN
•
LANCASTER
•
SCRANTON
Volume 184
Number 5566V.
.
The Commercial and Financial Chronicle
position of bank earning assets.
means
of
rise in loans
a
total
45%
assets
and
this
higher
tinues.
proportion
to
traditional
It is
our
which is
toward ;
loans
of
natural
a
a
con-
comeback
in
stock
lending of
trade
to private, competitive enterprises under the stimulus of postwar prosmoney
Our free'
?'
ysis,
itah
of Bank
and
a
question about the
adequacy of bank cap-
to take
resources
ther
economic
Capital
growth.
increase^from
a growth of !£
about
sure
ISSfi
have
competent
they are to function
to grow and prosper.
ac-
an
deal in credits—to
to
receive
de-
posits, make loans, and generally
worldoi
facilitate business transactions.
New industries
science"Irnd~technoioSv*
pur
indeed lie at the heart of modern
be the
lowest in
decades.
This is
.
,
of
Personnel
,,
,,
_
People build banks through comefforts.
Managements coordinate these efforts into effective teams.
No banking institution
can
truthfully boast of its
quality and success without giving due recognition to the caliber
must-take serious note of it.
of
...
Let
assume
us
that,
except for
short
periods of minor adsuch as in 1954, economic stability will be maintained
and the present relationships between gross national output and
some
justments,
bank
less
loans will continue
at
as
bank
or
On that basis,
might well be ex$40 or $45 bil$120 or $125 billion by
present.
loans
panded
lion
more
by
to
1965.
some
In such
deposits
an
also
eventuality, bank
rise by $50
would
$70 billion to $250 or $275 bil-
or
lion.
sustain^ such
To
a'deposit
with safety and comfort,
it would be necessary to increase
bank capital resources greatly in
growth
absolute
amounts
and
in
V
..
as
You
certainly
exemplify
efforts
banking
and
to
the
projected
the
economic
that
people.
bankers
our
of progress
in
even
they did in earlier decades.
Outing
.
LOS
in
A.
Such
,
ANGELES,
Heyman
have
been
.
and
;
W.
the
to
i
staff "of
s
f
^^
MacLean
^
F
Angeles
cussion.
Mayer was formerly with Morgan
around
0f
tive
figures but rather to pinpoint
problem of financial
requirements during the decade
ahead if our economy is to ex¬
pand as projected. Obviously, we
must enlarge and strengthen our
the
V
resources.
have
We
Federal
and
organizations,
System
essential
bank
that
it
but
directors
is
k e
riods
afford
to
relax
assets
over
and
methods.
of
1946, or any set of legislative
fiats, has put an end to the busi¬
ness
cycle, any more than I am
ready to admit the claim that the
law of supply and
demand ,has
been supplanted by reasoned decisioris
and
acts
of
economic
planners and currency managers.
Whatever
nomic
concepts
tained
by
be
ever
social
new
may
others,
and
be
bankers
eco¬
enter¬
must
alive to the financial re¬
sponsibility which the business
community and the general public
expect
of
them.
Failure
to rise
"staff"
***
St.,
members
Stock
the
of
Exchange.
&
Co:
Co.
and
Edgerton,
'
■>y^
.
Nein
Issue
Nor
phis
of
overlook
we
are
billion
the
at
business
mean
and
capital.
in
to
truth
is
that
un¬
privately
owned
Elmer
20
the
years
from
1933
to
'public'
power
increased
to 20% of the country's
6%
output of electric energy,
and
Federally produced
power
alone rose from less than half of
Los
Mr.
article points out.
W.
Hammeil
(Special to The Financial Chronicle)
CHICAGO, 111.—Elmer W. Ham¬
has
meil
become
associated
&
134
cago,
members
Company of Chi¬
South La Salle Street,
of
Exchange.
of -Straus,
Comparative Cost Ignorance
Lack
of
popular resistance to
this expansion is attributed by the
As A
uUy
is under
auy
no
circumstances to be construed
of these securities.
as
an
the
Midwest
Blosser
& ' McDowell
Talyor & Co. In the past he
and
was
an
officer of Caswell & Co.
Speculation
offer or as a solicitation of an offer
by the Prospectus
" :
The offering is made only
V
75,000 Common Stock Purchase Warrants
"
public
But debt
growth
hand.
a
share
on
the
.
and
sinews
.
for
.
What is lmportant for us to watch is the re-
business expansion.
of
Common
in
to go
seem
the option to purchase 1 .Warrant
Common Stock purchased at the
Each Warrant will entitle the holder thereof to purchase one
Stock at a price of $2.00 per share until the close of business
February 21, 1958.
;
Prospectus nay
The
in which this announcement is circulated from
brokers a3 may lawfully offer these securities in suc/t
be obtained in any State
of the undersigned or other dealers or
only such
State♦
UNDERWRITERS
credit
or
Borrowing
provide
purchasers of the Common Stock will be| given
price of lc per Warrant for each 4 shares of
public offering price.
projects
increases
>at
M. S. 6ERBER, l«C.
Broadway, New York 6, N. Y.
September 6. 1956
JAMES M. T00LAN & CO.
67
Stock
Mr. Hammeil was for¬
Price $2.00 Per Share
The
with
First Securities
merly in the trading department
-
-
.
V
(par value 1c per share)
public
history—
end of 1955.
is
First Securities Go.
300,000 Shares Common Stock
fact
the
it
Eimer Kammell Joins
(A DELAWARE CORPORATION)
Ill
lending
.
"The
notes.
the gong
our
further
economic
hand
'public' -power is cheaper than
'private' power," the "Survey"
the
and
debt, particularly since the rate
of savings, high as it is, runs be¬
hind the rate of demand for long-
and
trie 'illusion that
INDUSTRIAL LIMEROCK, INC.
Any significant further expansion
term
creates
only
this
heading into the next
private debt in
will
.
"Tliis
pro¬
1% to 13%, with a further rise to
16%
in prospect by i960," the
record
decade with the largest net
of
vate companies and still show no
deficit on their books.
:
how
can
we
$650
of
Wykoff
announcement
V
>
and
of
These Shares Are Offered
and ;con-
whistle
in
these
;
inflation.
that
its
total
^
'
;
;
us,
at
whistle of deflation and
of
intensified
expense
1953,
Calif.—Peter
likely to give cause
but gradually we are
to cope with the
are
learning
our
the quality of our
prudence of our
I, for one, am not con¬
vinced that the Employment Act
vigilance
income,
«the
for concern,
What We Have Done to the Cycle
enable
in financing
and
equal competition by deliberately
encouraging the growth of local
governmental power* agencies, vat
from
Crowell, V^eedon. & Coy 650 So.
all
up
"
of
ahead
expenditures
of
gong"
sound.
cannot
ANGELES,
levels, there will always be a
potential threat to its balance and
stability
through
excesses
and
subsequent corrections. Short pe-
are
costs
securi¬
savings
resulting
direct tax
—
period
gumer
to maintain their
capacities adequate, protection
base
ample, and earning assets
We
will open
It
employment,
reappraise their
lending and investment policies
and standards, and to re-examine
their costs and earning potentialities, if they
LOS
v
The
to
resources,
Crowell, Weedon
course/ will not be entirely free
from unsettling influences. When¬
ever
economic
activity is on a
high plateau as at present, with
strenuous efforts to build up capi-
tal
decade
a
Coping With Adjustments
and
m a
is
to those who administer it.
Reserve
themselves
managements
us
situations-good, bad and
and
will present
many
opportunities : and obliga¬
tions to the banking system and
indifferent
safeguards in the Federal Deposit
Insurance
adventure.
powerful
The
ties.
'
,
torts of
central
further
has
the
v
(Special to The Financial Chronicle)
have .Spring
Unfolding before
inexact specula-
of
lot
a
the investors iri their
are
giving its power agencies finan¬
cial advantages which it has de¬
nied to private companies, but it
attempted to visualize in this dis-
Joins
pie
My purpose is hot just to toss
Governmental agencies are
largely exempt from taxation, as
,
agements.
'.V
pay
these
for
taxes.
further'
The article asserts that not
"In
peo-
I
the in¬
securities
reimbursement
utilities.
which to meet the call of the
that
their
has the government gone into com¬
Calif.—Irvin
E.
added
rhe
R
wu/1 fin^adequate^e'sources'wi^h
conditions
quasi-govern¬
large-scale expansion of
ducing facilities.
commerical
and
and
undertakes
ernment
thilt
banking system
is making preparations to meet
the
demands
for
financing the
projected growth of our economy.
..
of tne so-called prefer¬
clause, a provision requiring
governmental
(Special to The Financial Chronicle)
,
our
include
tributors, unless the Federal Gov¬
you
concerted
and
companies
iri
heavy taxes, arid their rates must
mental customers and power dis¬
Two With A. H. Ghevrier
their willingness to cooperate with
common caGse. action assures us
Private
vestors
cheaper to the consumer but riot
preferential treatment to govern¬ to the people as a whole. Since
mental
agencies
and
certain government must have its reve¬
others in the sale of Federally
nue; the taxes not paid by con¬
produced power. 'JJy.'.V/'iV--,"'
;
sumers ' of 'public' power must be
More than 80% of the salable paid by others, which means that
power
from; Federal projects is these others are, in effect, subsi¬
now sold to preference customers,
dizing the 'public' power consum¬
and
the
r ;[ V.
"Survey" cites expert ers'."
.'Vv
opinion that eventually all Fed¬
erally produced power will go to
am
will
present
relationships between capital ac¬
counts and deposit* liabilities, it
would be necessary to strengthen
the capital structure of commer¬
cial banks by some $10 billion
in the next decade of projected
economic growth. To raise that
much money through stock issues
and
retained earnings is indeed
a
challenging job for bank man-
in; the
Spreads
,
ence
I
general confusion
that exists' regarding the
com¬
parative costs of "private" and
"public" power.
L. E. Steiner, Radio Corporation petition with its own citizens in
of America, is Chairman of the the private power
business, and
entertainment committee.;
competed on an unequal basis by
show
banks
your
Clause
Public Power
.
of
Corp. Transfer Acts
in—
advance
power
to
agencies to
charge much lower rates than pri¬
The drift toward ''public" pow¬
er has been speeded by a number
'thp
in
the next decade of adventure
adequate
divide!
Preference
vast
They cannot fail to re¬
the changing needs of
to
the demands
meet
training facilities on-the-job and through specialized
schooling, such as the
one you have just completed, AIB
courses, local
colleges and uniVersifies. -oy'
propor¬
"give-away" of taxpay¬
the "Survey" states.
inority
Of
To Hold
the
maintain
to
stand
'
tion to; enlarged liabilities.
Even
the
its management and the entire
personnel
working as
a
team,
.Banks may grow in size through
The Corporate Transfer Agents'
mergers, but
not necessarily in
quality
of
performance
unless Association will hold its Tenth
they have people of capacity, good Annual Outing on Thursday, Sept.
will and enthusiasm to run them. 27, at Colonia Country Club, CoIt is, therefore, a paramount re- 'Ionia, New. Jersey,
sponsibility of bank directors and
Tne outing will consist of golf
officers to recruit promising "and dinner for the members of the
young men and women and then
Association and their guests.'
provide
and
center, qi me projected economic
confident
bined
With
banks
industry.,; and
.
emphasis by supervisory authorities on the adequacy of bank
capital as a strengthened basis for
increasing credit or deposits. It is
an
important emphasis and we
the principal reason for the pres¬
ent
sizable
a
spond
growth.
Caliber
is
legislative arid administrative
policies adopted under the aur
center
«
finance.
is cheaper than private
"Surveyw
costs
over financial resources,
commercial
r>
effect
growing
and
to be financed in one
another
Qr
way
capital.accounts.
Moreover, while
the ratio of capital resources to
liabilities is higher now than at
the end of the war, it continues 10
products
new
The
Jaboratoriefc These, creations
sey.er.e
de™ands of the public. The command
activities of a commercial banker
in
power
ers' money,
But
as
Exposes fallacy that public
reason
£7,1 Is'
Perform the multitude of its will have
functions efficiently to satisfy the
78%.
witK actively promoting riublic power for favored groups.
ment
strains
and
That is the prin; The
Federal Government not
why we are so eager
to secure, train and hold the best only has gone into competition
kind of manpower for our top with its own citizens as a produc¬
management and for key positions er and seller of power but actual¬
in our enterprises. We want men ly has become an active promote
of
the
and women of capacity to think, er
"public" product for
to decide, and to lead with cour¬ favored groups, according to the
September issue of "The Guaranty
age and vision. - V1 V
Commercial banks, indeed, are Survey," published by Guaranty
Trust Company of New York.
operating in a rapidly changing
cipai
entity, a corporation,
association, empowered by law
an
stresses
Away" Is in Public Power
September Guaranty Trust '?Survey1"charges Federal Govern¬
ingenuity.
our
-
isamSu1rI1hCIa?!thparaTSnf
much
the rate of ^rrWh'fn
growth
as
?
is
Million W"y
S1Iect?d
and Sfi
trained people
must run it, that
ernwth nf
a
1956,
of fur-
care
is
The,Real "Rive
com-
that create uncertainties and test
This is self-evident. A commercial
bank
all the
with
must
if
properly,
expansion in loans natur-
raises
bank
any
realize the ereat
us
plfxit^of STodem 5eWno^,
m rip^
personnel—directors, officers, and
non-official employees.
people
Capital
Resources
This
ally
the quality of
Air of
-
determined by the quality of its
Banks
.
trend
Society ^iVek hs
debt
and national products,
portunity to have good banks and
it knows that, in the final anal-
peTity.
Adequacy
lationship between national
to this responsibility through imprudence, negligence or incom-
about, petenceentails dire consequences.
to
trend
It
16%
from
1945
in
13
(985)
Wall
Street,
New York S, N. Y.
14
The Commercial and Financial Chronicle
(986)
First
The
News About Banks
BRANCHES
NEW
NEW
REVISED
.
The
with
$25,000,
into
and
was
Security
Rochester,
C.
F. Bowditch
Assistant Cashier.
the Central At-
Jantic
the
of
District
bank's
Company,"
effective
'
*
'
Do-
Robert
B.
*
Mr.
Anderson
*
of
5%
a
became
Thomas
.
Centre
Dime
lernational
operations principally
mining field, in Septemas Deputy Secretary of Defense in Washington. He was appointed to the
v
the
S
Sities
of
Rockville
Vice-President
a
The
of
y
observed
Aus
*on
31
ager
the
anniversary of the day he
joined the bank's staff as an office
boy jn 1931
After holding variQ^g
posts at "The Dime" during
jn.
some
General Man-
years
achieved
ol the W. T. Waggoner Estate
Vernon,
home, and
He is
stock
Committee
of
rector
Dresser
Webb
■
and
&
Di-
a
Industries;
Director of Missouri Pacific
June
Lines, addition
Knapp (Canada) Ltd.,
(Conn.) Trust Co. and
Trust Co.,; Toronto,
Sities
I™!
The
W
July reSarciing
has
York
^
Hanover
Bank
announces
as
1952.
an
Edward A- Voigt
ficers' dining
coin
today
N.
Assistant
an
room
Savings
in
Y.,
Bank
honor
The Hanover
to
appeared in
July 26, page 393.
*
*
Assistant
dents
in
were
William
James
of
Ar™
Corps.
TT
the
R.
Brooklyn,
Citizens
years
G.
Managers.
and
Blake
joined
The
Hanover in 1947. Prioi
to that,
he
served
four
carriers
in
the
years
on
as
aircraft
Pacific- Theatre
during World War
II.
Mr. Greene
has been with the bank since
May,
retired,
of
the
Quarter Century
Trust
Paterson,
having
The
,
Bank
of
as
Freeport
,,
,
at
Company
140
also
a
t i
out of hiding. Also it is evident that funds, which would
ordinarily be put to work in common stocks, are being invested in
bonds, mainly in the recently offered issues of corporates, because
the return is larger in these securities than in selected equities.
Long
I
Island
as
$522,500
offering
was
consolidation
the
result
of
new
of
the
stock
capital stock of $710,-.
a
°?°vin 710>°2? sharues of
!tock'
$1
par
common
surplus of.
each'
16
Dace 691
io, page
oui.
The
columns July 5>
Page 80; Aug. 2,
page 495 a"d Aug' 23' page 793'
*
*
Announcement is
a
made
Trust
by
the
Company
of
Philadelphia, of the advancement
of John J. Cloak and Leslie A.
Netv Issue
Wright, to the offices of VicePresidents, according to the Phil¬
adelphia "Inquirer" of Aug. 19,
570,000 Shares
which also stated that Thomas
The Mica & Minerals
Corporation
of A merica
Vice-Presidents
inger
also
(Par Value 10
cents
per
and
Russell
Gerald
and
From
the
"Inquirer"
share)
7■■■■■
Price $1,00 Per Share
quote:
the
time
of
Street
He
the
Trust
merger
in
&
Broadway
Dlgby 9-3430
New York 6, N. Y.
new
will
be
post
as
iue quutj' rates ior ooi rowed funds.
It is also reported that the
financing of new instalment purchases will be more costly, but it is
not expected that this will slow down very much the sales of
durable consumers' goods. It is believed that the last quarter sales
of the new models of automobiles will be very satisfactory and this
will
mean
that the demand for credit will
Market for Treasury Liens
The
Government
market
continue to be sizable.
Lethargic
<
appeared
have
to
discounted
selling, along with the usual absence of buyers in a very thin and
market, pushed quotations down again, with many of
issues
is
threshold of t ^eir 1953 lows. The wavering technical rally was not
unexpected, since it was evident that more favorable yields are
available
still
^tax-free
down
in
non-Government
Also
levels
many
where scale
stitutional investors
as
well
obligations especially
of
these
securities
Competition From Corporate Offerings
There
are
still
evidences
of not too
most distant Government bonds
large liquidations of the
by insurance companies, not in the
largest classifications, in order to make payments for commitments
that have been made in new issues of corporate bonds. It is re¬
ported t'rat the 3y4S and the 3s have been the principal issues
which have been sold to make way for t.ie new offerings, al¬
though there
are indications that some of the most distant 2%s
have also been let out in order to make payments for these recent
flotations.
The demand for long-term money continues to be
sizable and this will make the competition
very
as
sistant Cashier.
will be
His
new
position
Vice-President, Operations
Department.,
,»
•
-
»
keen
as
ever
*for the available funds, which means that Government obligations
will have to sell at yields that will be in line with the going rates
for
credit.
downward
As
less the prices for
^
stand
matters
now,
there will have to be further
adjustments in quotations of Treasury obligations
non-Government securities
move up or
un¬
there is
change in the policies of the monetary authorities.
;
Public Pension Funds Active Buyers
funds
term
other
side
of
the
picture shows that the public pension
still the important source of buying as far as the longestGovernments are concerned.
It is reported that they have
are
been the main purchasers of the 3V4S and 3s which
sistant
gone?
individuals.
as
for sale.
promoted to As¬
Vice-President from As¬
have
buying is being done by certain in¬
January, 1930, and at the time of
was
those in
buying has been in evidence in the
some
since
obligations,
to
The
National
in
the corporate field.
branch.
Broad
going down to or through to new lows for the year.
prices of Treasury bonds were on the
(In not a"-few instances,
the
merger
,
the
v raising of the discount rate, since a mild rally took place after the ;
announcement.
However, the combination of a small amount of
Vice-President,
Wright became associated
North
in interest rates continues, with bankers aacceptedging up, as well as most
and commercial paper rates again
assigned to the Broad
Nedro Ave.
"Mr.
with
Morgan & Co.
Treasurer.
promoted
to
Assistant
Vice-President in November, 1955.
he
he obtained from
with
October,
was
In his
Peter
we
Cloak joined North Broad
National Bank in
June, 1936, and
at
the proceeds are being
-
Oi.
new
11952, became Assistant
may
E.
Gretz-
"Mr.
Broad
Prospectus
W.
were named Assistant Secre¬
taries.
Common Stock,
F.
Loeffler, Russell Hamilton, Jr. and
Frank A. McHenry had become
Fitzgerald
evidence yet that common stocks
being liquidated and
are
The uptrend
ances
these
$731,074.; Reference to the consolidation plans appeared in these
Street
no
uncertain
sale
referred to in these
uiiiiis Aug
columns
equities
cases
invested in bonds.
com-
consolidated
there is
being sold in really important amounts to make way for pur¬
chases "of fixed income bearing obligations, even though in some
are
a"capital of $7J® fn7ffig "Sr
a
other hand,
On the
the Second National Bank of Red
under the title The
bank had
0 n a
income
money
of
effected
was
tight
Monmouth County National Bank,
Red Bank.
At the effective date
of
be under pressure and
money market continues to have its effect upon
bearing obligations, even though th£ higher yields
available in certain of these securities is bringing some investment
fixed
Street,
recently into the
merged
on
CHIPPENDALE, JR.
being watched closely as a clue to future trends in the
also
The
Market
stock of $100,000
Broad
149
is
of Aug. 17 under the charter of
as
-
of Aug. 20, increased from
$6,962,250
of
mon
C.
V
Mead0wbrook N
N. Y., reports
750,
The
' \.
t
Higher Bond Yields Attract Buyers
pany of Keyport, N. J., with
also a
Lincoln's
Club.
stock.
new
Government market.
County Bank and Trust Company
is
*./«"♦
,!s
.
formerly ;
Mr.
assistant navigator
member
Division
Blake
His /father,: Louis
now
Waco,
specialists since they are of the opinion that the interest rate rais¬
ing and credit limiting operations of the powers that be, are not
likely to go a great deal further. The action of the equity market
former Treasurer of The Bank and
a
Lincoln,
Vice-Presi-
Foreign
Greene, both
Assistant
College-
Voigt
MflHnp
Marine
of
Government market continues to
*
V
War
the
Banking
of
of
have not been more than rather
uncertain technical recoveries. Nonetheless, there seems to be a
somewhat less bearish attitude now among certain money market
.
ihn
the U.S.
IT
the.
with
work
Institute
The
July
issue of
fn 1Q^
i? WnrfJ
National City
Texas, became
$350,000 as of Aug. 20, having been
raised to that figure from $250,000. following the sale of $100,000
The capital of the
Bank
the rallies which have taken place
'
total membership to 64.
1928, Mr. An-
since
-
veloping.
the
our
pany of Paterson, N. J., announces
under date of Aug. 28, that the
25
$100,000 of new stock. /
sale of
department.
though there are reports that some maladj ustments are de¬
even
share
ntire„career Voigt graduated from, the Alex- tional Bank of Red Bank, N. J.,
/VIfv: He was ander Hamilton Business Insti- with common stock of $520,000
r7rr
tute' and the American Institute of / and the Keyport Banking Com-,
Elected
an
reference
"
meeting
bstTn
Barrand has Banking and has taken aporaisal
fichfltive sfnpA European repre- and real estate courses at ColumTheHanover In 1Q4« 5fpr
bia University and,f Swarthmore
with
tn
a
of The Linhis
$400,000 to $500,000, the ad¬
having resulted from the
.supply of credit, whether it be short- or long-term, is still very
keen and there are no indications yet of any change in this de;i> diet. V±'i e
economy is still operating with a boom psychology,
totaling
The County Bank & Trust Com-
of
of
dition
price-wage
tne medium of higher interest rates,
and tighter credit, continues to have a defensive influence on the
market for Government obligations. Competition for the available
bringing of
129
Market : Street,
is
now
August H. known as the latter s Citizens OfWenzel, President of the Club, fice.
presented him with an appropri-•
*
*
*
ately-inscribed wrist watch. Mr.,
Consolidation of the Second Na-
Vice-
President, and Mr. Barrand was
European representative. W i t h
ins
dividend,
of-
the
from
The. efforts of the monetary authorities to curb the
announced."
Earlier
recently
was
luncheon in
a
<':f
inflationary spiral through
Club,
formerly
dent
held. " The
was
-
(Sept. 6); the election of John H.f service with the bank. He is the
Andren and Harry P. Barrand, Jr. first member of The Lincoln's
apas
Vice-Presidents in the bank's
praisal department to enter the
Foreign
Division
Mr
Andren bank's
25
Year
was
advance
increase in the
dend from 60 to 75 cents
In
*
*
...
whose
By JOHN T.
the regular quarterly cash divi-
made a Vice-
'
tendered
*
New
of
of
was
November
♦
ln"
-
had
r
pu r Reporte r
cash
v i d en d the
News, of Aug. 21 said,
20
he
to his banking work, Mr.
known
in
insurance
Can-
Van°US
-:
is
in
circles.
?fca- .Mr- Anderson is likewise
?
1946, and
President
a
Greenwich
Crown
when
the
pro¬
years,
dividend would be payable " Sept,_/
14 to stockholders of record Aug.
appointed Assistant Mortgage 25,000 shares, will increase ou*Officer. In 1943, he was made an- sending shares to 525,000.
CapiAssistant Secretary in charge - of tal
the bank will be increased
Mortgage Servicing, was advanced from $5,000,000 to $5,250,000. After
to
Assistant
Vice-President
in the July 17 meeting an increase in
presently Chairman of the
Executive
rank
Weiss
is a graduate of
Lawrence College and the Univer¬
sity of Wisconsin Law School. He
was
Texas,
his
former
director of the Fed-
a
eial Reserve Bank of Dallas.
officer
Mr.
Vice-President
commercial
Johnson
many
"The dividend, recommended by
the board at its July 17 meetlatter position by President
Eisen-tbe eight years, 1931-1939, Mr. ing> was approved yesterday at
hower in 1954 alter serving for a
gjties was made manager of the a
special shareholders' meeting,
year as
Secretary of the Navy.
Mortgage Application Department. The dividend is to be paid on the
Before
that, Mr. Anderson had yw0
years
iater
in
1941
he basis of one new share for each
been for
Second
27# As to Pr,eVious action taken in
Savings Bank of Brooklyn
25th
ber, 1955, after resigning
Chicago,
*
15 the Citizens Na¬
tional Bank & Trust Company of
Houma, La., increased its capital
As of Aug.
Trust
family has
been active in banking circles for
*
declaration
gained
much
experience
working at the First Wis¬
National .Bank and the
Whitefish Bay (Wis.) State Bank.
consin,
the Newark "Evening News" of
Aug. 21, which indicated that the
^
—
>
President of Ventures Ltd., a Canadian holding company with inin
Division.
agers in the Foreign
Trustee of The Hanover Bank of
o.
*'
' -The
to
the
Mr.
„
.
of
Si Beckley, W. J. Paden, and of the Fidelity Union Trust Co. of American
George O. Gross as Assistant Man- Newark, N. J., was announced by
Anderson,
New York, the bank announced on'
Sept.
in
As-•'°1 Au%24, by a
•
Northern
The
Assistant
moted
j5Cr*Q<fn™nS S?pital from $300,000
'^9 $350,000, the amount having
stock dividend.
Thursday, September 6,1956
while
and
Manager
of
credit department and then
announced the appointment5 of A. /dividend by the board of directors
.
President
of Ventures Ltd., has been elected
a
United
The bank also
ceed Mr. Barrand.
*
*
the
witn
the
of
with
Company
•
*
City National Bank & Trust
sistant Manager, has been named
European .representative to sue-
Division.
r.^ '
formerly
was
Service
Vice-President
a
.
and '
Harold
ciated
Trust
July 2.
Michael C. Bouteneff,
States.
He is assigned to
mestic
He
Foreign
as
of
rity
was
appointed Patrick
an
Weiss
election
.
O. K.
un¬
Company of Danbury, Conn., has
has
the
American
Racine, Wis.,
Johnson, Jr., as an Assistant
Vice-President.
Formerly
asso¬
The
York
the
der the charter and title of "Secu¬
*
The First National City Bank of * 1955.
of
announce
stock of
common
CAPITALIZATIONS
New
directors
with
merged
Bankers
and
OFFICERS, ETC.
of
Bank & Trust Co. of
Trust Company of
CONSOLIDATIONS
Bank
National
Greenwood, at Greenwood, N. Y.,
.
on
a
have
come
i*
These commitments, according to advices, are being made
scale-down basis. The 21/£s of Nov. 15, 1961 continue to find
homes
in
not
too
large
amounts among
some
of the smaller in¬
stitutional investors, with certain of the out-of-town deposit banks
also reportedly interested in them as prices decline.
5
Volume 184
Number 5566
.
The Commercial and Financial Chronicle
.
.
(987)
Washington
Ahead of the News
to
The
of
that
Eisenhower
could
really serious and there
lose
couple
a
of
Midwestern
states, it
should be checked when the farmers come to realize that
high in
the counsels of Adlai
Stevenson, should he be elected, would be
Walter Reuther.
Mr. Reuther is at least partly
responsible for
his
cause
of the farmers'
some
incessant
demand
woes
for
policies independently of each other.
be¬
increased
for workers has boosted the cost of farm
implements. The result is that farm imple¬
ment sales are decidedly down which does not
do Reuther's workers any
good, either.
He
has also boosted the wages of farm labor.
the
A3/AA:''
articulate.
more
Chicago
was
Democrat
most active
its
recent
meeting the Council of
grave
the
output
before
concern
Europe.
AAA:
statement
convention,
sued
Carlisle
Bargeroe
is¬
after the
he
to
wants
get the farmers' income up in
they can pay high wages for farm labor and can buy the
farm equipment manufactured at
high labor costs. To do this,
he was quite
influential, along with former Secretaries of Agri- A
culture "Baldy" Brannan and Claude Wickard, in the Democrat
order that
farm program.
Farm
government planners'think he should receive.
This
hooted down by a Democrat-controlled Congress in
costs-have
never
been calculated,
even
protege, Mennens Williams,
reelect him for
?
'
,
He must
come
that
solely
what
he
Nixon
even
that
this
won't
is
to
be
be
'
held
If
one
this
to
is
to
line.
is
my
so
to speak, but it also
r
Validation
Board
for
Ger¬
Dollar Bonds announced
Aug.
that it had issued an amend¬
31
ment
to
to
its
instructions
registration
covfring
relating
the ap¬
plication for validation of German
Dollar
Bonds
which
require
of
;the
92
"All
issues
validation.
amended instruction reads
lows:
registration
forms
This
as
fol¬
the
failure
must
the last sentence of Section 21
(1)
of the Law for the Validation of
German
Foreign Currency Bonds
Aug. 25, 1952; i.e., 'The regis¬
tration may be made within two
of
inflation
for
has
to
come
offset
the
in-,
AA"'' ■'A-AAt'
ning cuts in arms expenditure it
may take some time before these
some
halt,
a
V"
cuts
3
.
Labor Inflationary Bias in
U. S. and U. K.
Latin
'rising*
prices.
some
was
other
further
the under-
remained
has
tn
Even
no
there
most
difficult
it
infla-
can assume sufficiently large
to make an appreci-
dimensions
afc^e
difference
in
the
situation.
Rfec^nt developments in the
Mid-
die East do not exactly encourage
Britain and other countries to reduce their strength in converttional armament.
>
->
;
devel°Ped!in 1956, the general
level of employment remains high,
The?; fact that the American steel
strike resulted in the granting
Snmmarv
.'A.,:v.
1
-
.
.
substantial, wages increase shows
These various factors operate in
that> notwithstanding unemploy- various countries in a varying dement in the automobile industry,
gree.
Unlike
the general level of employment the 16th
country
the
gold
influx
in
and 17th centuries, they
whole is such, do not constitute international
factors. Their operation in each
country is determined by policies
°£ organized labor. The same is in circumstances special to thu
true concerning Britain to an even countries concerned. Nevertheless,
as a
as to maintain the industrial balance of P°wer strongly in favor
SAC„h nf,tI
spiral continues, .therefore, un- in practice very few counjriea
abated.*^
3 A'---; Ar:'A A
'have succeeded in isolating them--
was
to
register
not
due
the
to
are
now
ing
character
importance
States
ward
an
South
is
the
Sound Canadian Investments
of
world
in
,
the
States
United
economy
downward
or
an
trend
is liable to
international
United States investors
up¬
in
assume
K
character, though
always
necessarily
includes: 3;rV;...::
be
•
--A
*
1
t'y
L
1,1
•.
■'
.
A 3
largely independently of inflation
in other countries.
The
same
Now With Bennett & Co.
(Special to The Financial Chronicle)
HOLLYWOpD, Calif.
—
countries
setback
tional
Hollywood
Boulevard.*
Co.,
came
6253
1956.
after
rise
an
since
But
tion
/3'
•
'
on
A Correspondence Department set up to deal
V
Private
in securities by mail.
|
A
A v !
teletype service to
Canada and
V
to
our
offices
across
New York.
Membership in The Investment Dealers* Associa¬
Canada, and through our affiliate, membership in leading Stock Exchanges in Canada.
tion of
4
Inquiries from investors
>
are
v
<3
invited.
McLeod,Young,Weir & Company
LIMITED
almost
the
Investment Dealers Since 1921
this
un¬
50 KING
war.
the rise in the output tends
involve
an
expansion of na¬
to
&
during
Since
Kung Wen has been added to the
Bennett
■
fac¬
It is true the volume of produc¬
declined somewhat in many
staff
of
.
tion
interrupted
Adam
'i '
Department with up-to-date informamajor Canadian companies.
V
v
What is happening is that infla¬
in
each
country
operates
own
St.
:
,
tion
•.! ; 3
A Research
V
Coincidence of Inflation
,
■
,
complete investment service to United States investors
A*
A
case.
.
Canadian
.
Our
-
not
can buy through us many high
securities which make very sound
investments^ Some of these also have attractive growth
possibilities.
3,
AAA^'A AAA-
quality
the
in this respect experience in
recent years has proved
that it
■.
Spring
length o2
any
A" ■ VA;;t.
in
even
r
connected with Aron¬
Co., 426
for
:
an
tors exist everywhere independ¬
19.36, must be accompanied by a
ently. These factors are the rising
explanation
of
t.ie
reason
trend of production, the high level
•why the bond was not registered
of employment, the adoption of
on or
prior to that date."
the Welfare State, the high level
of public and private capital ex¬
Aronson Adds
penditure, and the need for main¬
especial to The Financial Chronicle)
taining a high degree of military
LOS ANGELFS, Calif.—Leo M. preparedness.
&
trend
What
full
son
national
time.
Owing to the overwhelm¬
United
negligence.'
Accordingly
registrations filed after Aug. ' 31,
selves completely from the inter¬
such in¬
no
The only factor of
international
bond
his
At uresent
A expansionary trend in the United
with the Board after
Aug. 31,1956,
satisfy the requirements of
affect
In
East'too,
the
find
recent months
operation.
.gross
Yatz is
filed
are
to
confined to those countries
years after the expiration of the
period specified in the first sen¬
tence if the registrant shows that
earlier
The
trend
countries
the
man
has
another
though in Britain and
need
Validation Amended
to
happening is that in the over¬
whelming majority of countries
inflationary influences which are
enough.
easier.
Dollar Bond Issues !
and
down
States.
easier,
German
sufficient
measures
expenditure
is
believe
It
would have some more inflation under the
Democrats but you'd
be surprised how
many people there are who like inflation or at
least don't dislike it.
Money goes
on
consumer
situation is inflation.
,
ternational factor is at work.
I run into too many people, business and professional
men, t
who say that
prosperity will continue just as well tinder .'the '
Democrats as the Republicans.
They think that perhaps we
Procedure
not
The extent to which
requirements of capital
expenditure. The sum total of the
infla¬
settled
was
which is bound
international
centuries.
as
.
comes
it
the
It has got to be told. *
Eisenhower accomplishments.
hears
conviction
after
standing historical instance was
inflationary effect of the shipThe extent to which consumpments
of
precious
metals
te tion is maintained and increased
Europe after
the^discovery
of the through
the growing amounts of
New World, in
the 16th and 17th
z
.
reason
the
on
this
fAAAAfA
that I shudder every time I hear the statement
Republicans are to conduct a positive campaign based
the
ca-
.
.
in with
But the public can't be left to realize this.
It is for this
productive
higher degree. The extent of un- their surh total is international inPerhaps it is not correct to employment
that
developed in flation.
Even though in, theory
speak of an international infla- Britain during 1956 has been
quite any government is at liberty to
tionary trend," because that would negligible and the trade unions isolate itself from the trend
by
imply the operation of interna- continue
to
hold
most
of
the pursuing different policies from
tional inflationary factors.
From trumps.
The inflationary wages those pursued in other countries,
able as Eisen- "
Reuther, the
Americans for Democratic
Action, and the* rest of the pinks and leftists. This stripe will make up his Administration.
But he can't do that.
in
.
•
„
into the Presidency in the way he would person-
ally like to come, he very probably would be just
hower.
Einzig
*
Stevenson is undoubtedly an able man and a man of integrity.
come
to
lying trend
tionary.*
prominent in the Steven¬
so
_
If he could
and
•
only Reutner but the others
not
camp.
is
3 foreshadow
rise in
send
son
Nor
strike
hbld
his CIO handpicked the Democrat gubernatorial
they have aiso thrown their support behind Claude Wickard
for the Senate
against the veteran Senator Homer C. Capehart, A
Present odds are that Capehart, who has served in the Senate for i
12 years, will win, but the CIO has made known that it
plans to
.
generate
*
Paul
countries
many
governments
He >
candidate 3
plenty of money into the State.
'
The lesson to be drawn from this state of affairs by the Re¬
publicans, it seems to me, is that they have got to make Reuther an
Dr.
believed
America
Its
and
issue,
in
States,
Michigan.
multimil¬
and
rise,
rate
States steel
the
Governor and expects to
as
to
a
spell of rising prices in the United
fourth term this year. 3
A
now is to make Indiana
another Michigan..
a
His ambition
their
disinflationary
keep down
countries, the addi¬
during the
_
n{;
r
time
was
1949.'
For years Reuther has dominated
the State of
Three times hand
running he has elected his youngish
lionaire
what the
plan
these
Although in the United States,
tionary trend confined to Europe. Britain and some other countries
The terms on which^ the United a certain degree of unemployment
agreement also,
farmers' ruin. On top of this, the platform calls for the old Brannan plan
by which the farmer would be paid by the government
he receives in the market and
to
con¬
quickened."
and the Grange, seem to agree is responsible
present plight, and on which there seems to be *
that if it is restored it will bring about the •
for the difference which
per¬
which
Bureau
the farmers'
Improve-^
prolonged period of rapid expan¬
Expectations that inflation could
sion are being spent and
re-spent be moderated through disarma¬
over
ment
and over again.
have failed so far to ma¬
Expansion
of production
continues, therefore, terialize. Although Britain is plan¬
and
at
The main feature of this program is a return to the high rigid
price support formula which students of agriculture, including
the
some
the
services
investment to national income
^ expected to increase during the
temporary
a
social and
in favor of capi¬
on
encouraging private firms
current year.
creased
to
has
^ven though in Britain
e dlsinflationary measures tal$en
m J955 tended to discourage iny^stooent, actually the proportion
the increase in incomes refrom expanding r produc-
come
world
strong
public
increase
down
price
tinue
^
for
to
paid out and spent
increased volume of
became available.
More-
in
to¬
of local
~
AA-;A'Aj.A
■
A
-
,the
pressure
of
pansion in production has slowed
sisted
s
r^
the
has
contribute
war
now
expenditure
favor of
tional incomes created
-
months
insists
political
resulting from the higher
or
of
investment-conscious.
is
is
halt
meeting
and
he masterminded the Vice-jt-residential
A-^./A'A stressed that
nomination of Estes Kefauver. He is, in fact, responsible for the A
"inflationary
AFL-CIO's endorsement of the Stevenson-Kefauver ticket in J
pressure
has
the Presidential, campaign. George Meany was
very much against in
recent
Reuther
A A-A
the
become
There
produced, and is still pro¬
ducing its "multiplier effect" on
spending.
Even though the ex¬
The
streams
spendings in iridi-
the, general stream
Since
tion
n
The
to in¬
demo¬
Investments Continue
result of
pursuing inflationary
suiting
tionary
State
other
result not
as a
were
goods
over,
in¬
trend: i
in Stevenson's camp
incomes
of
European EcoCooperation expressed its
the
over
fla
as a
rather,
length of time.
any
Organization
ican Farm Bureau Federation and the National
At
LONDON, Eng.—At
-nomicr
Reuther has long posed as a friend of the
farmers.
In fact, in the pursuit of his4 am-'
bitions,he has an alliance with the National
Farmers' Union, a radically left wing outfit
which although much smaller than the Amer¬
Grange, is much
for
exceptionally
most
inflation.
isolate themselves from the international trend
A
in
countries
wards
ment
Paris
;.■?>
vidual
countries:
A
is
countries.
Welfare
tal
;
'
cratic
Finds in the U. S. A.,
and particularly in the U.
K., that the "industrial balance of
power is strongly in favor of organized
labor," and that few
can
also
crease
.
inflation, Dr. Einzig observes,
an
wages
Reuther
total is
sum
international operating factor
but,
the coincidence of individual countries
indications
are
benefits
high in Britain, but it tends
Pattern of Coincidence
a
By PAUL EINZIG
By CARLISLE BARGERON
If the farm unrest is
social
International Inflation Trend
From
.15
incomes, it was inherently
inflationary because the additional
Montreal
Calgary
STREET WEST,
Ottawa
Kitchener
Winnipeg
Quebec
TORONTO, CANADA
London"
Hamilton
Sherbrooke
Vancouver
New York
Financial Chronicle
The Commercial and
16
.
.
.
Thursday, September 6,1956
(988)
sales^ and higher net
THE MARKET..
By WALLACE
STREETE
multi-point gain and Dresser
Day holiday with a Industries, which worked
couple of the better gains seen ahead somewhat persistently,
in nearly three months. The was also able to make the list
only sour note in the per¬ of new highs. Dresser, once a
formance was that the rails cyclical outfit vulnerable to
were
only lukewarm in the business downturns, is a someface of good action by the in¬ what different company these
Stocks bracketed the feared
The
holiday shutdown has
a dire
aspect in re¬
cent years and the commenta¬
tors
are
legion '/ who / have
pointed out that earlier/bull
markets, notably those - of
1929,1937 and 1946, fell apart
seams
once
the Labor
of the
way. Whether or not the same
situation prevails this year,
the buying around the holi¬
day directly flouted all the;
talk of the period as one of
crisis.
'
*
\
!
' •
recess
.
•!»,, <
Operations; Capital Over $17 Million
of its varied activities in
which
the
down
to
tire
field
is
.
now
under/5Q% "of
its
Dayton,/ completely
market.;
~
independent of the new car
days than of old. It
changed face, not through the
assumed
the
flkt,
problems, has been stressing1
foam
rubber
products and
other rubber goods apart from
tires and has/a one-seventh
interest in a synthetic rubber
has plant purchased last year.
%
dustrial average.
at
Starts
projected to a record!
profit for its fiscal year be-S
Labor
Day
Dillon, Union Securities & Co.
being
cause
,
Eastman
x
in- newer ;
Dayton Rubber; too, is
fields.
AND YOU
.
activities
its
from
out
was
;
Steels and Metals
Well-Acting
Autos Ready for Getaway
all-popular device of diversi¬
Automotive ^issues
fication, but by moving away
from durable goods to ex- selves .showed some careful
•
pendable items which are ex- and /restrained detnand;^at,
pected to account for nearly times. These ~ well-depressed /
Wo-thirds oi sale& this- year issues naturally ^e|lected the i
against a negligible propor- rather pronounced trim in car
tion a decade ago, A bit of sales this year. It Mt the
glamor has been added, too, dealer inventories well under'
by Dresser's work in develop- control, ;howevbr,/and paved •
ing new drilling bits which, if the; way for a! good rebound;in r
they are successful, could sales and earnings of the big •
revolutionize the entire field auto firms if the/style and
of oil well drilling.
mechanical changes in the !
jl
new-models spur buying. -It i
^
•
1
-
T.
¥
Outstanding Liquor Issue
to be
seems
the many other
Steels, and metal shares neglected groups are the
generally, were among the liquor shares and here the
best acting groups on the re¬ better-performing issue lately
Among
well established
.
that
premature talk of new
features for the l957 models A
,
potential buyers' of :
yearns line which could ;
deflected
this
bound which had started from has been National
Distillers, gjvo the industry a built-in
policy support for a fast getaway on •
in augmenting the new car sales.
.
the 495 area,
above
what
had outlined
some
'the* technicians
as
of the directors
new
area the
regular cash payments
industrials, • with stock dividends one off
the first
of resistance. The
consequently,
10 points largely due to a
were
back
in which
already has been de-
Departraent store issues,
wWch
were
0f
another
the
Joseph H.
newly-combined firm of Eastman
Dillon; Union Securities & Co.* which joins two of the country's
Lloyd
King
upon
S. Gilmour
greets his new associate
(right)
opening of the
the
larger investment banking and brokerage organizations.
.
mour
was
was
senior partner
Mr. Gil¬
of Eastman, Dillon & Co. and Mr. King
President of Union Securities Corporation.
trading range clared. The stock has been arnur.„ ,annrpri hv the hull '
Eastman Dillon, Union Securities & Co., has commenced
l ignored Dy
D
Eastman Dillon,
had* lolled tovine with its vear's high as
new
name
and announced a new slate of
Jpciflt mis, rnnrphvpr
iq hht
ma
runups,
pretty,..much,
,
operations
under its
„
for most of July and August. k
a result,
moreover, s
ot
have been working back into > general and limited partners. The firm, which is a combination of
U. S. Steel, Crucible, and Re¬ the pattern Of most other 4s"
favor without f a n far e. A
Union Securities' Corporation and Eastman, Dillon & Co., has
l
pn,inlP nf * capital in excess of $17,000,000, according to Lloyd S. Gilmour
public Steel were prominent sues in the group.
on
////;,
*
♦
* ,
■
. measure is mat, a./equpie oi
and j0seph H. King, senior partners.
posting new highs simul¬
:
Part, of the preference for them this year nave.re urne
,
The firm, which has offices in New York, Philadelphia, Baltitaneously at a time when the
.e
■
HR" more* Boston, Hartford, Buffalo, Cleveland, Chicago, Los Angeles
new lows have been outrun¬ National Distillers stem$s from — Prices seen ^n
flip foH- fViat if nffprc a o-rrmr+K swing,
Others, like R. H.
and in other smaller cities, anticipates greatly expanded business,
ning new highs consistently
nntential hht^ inhprLt in M^hP Macy, which offers a yield of 7 both in the investment banking field and in its brokerage busipotential not inherent in the
for some three weeks.
fii/o%': arp well tinder*
ness> according to the senior partners. It is a member of the New
liquor line by its energetic £ .
,
J V
j
I
an
York Stock Exchange and other leading securities exchanges,
Buying in Aircrafts
;
steps in recent years to carve ™eir pef^S
?eC1an,ec
•
In addition to Mr. Gilmour and Mr. King, general partners of
out
a
sizable
role
in
the
chem™acy
s°hl
a^
•pbo
***
the
firm, are Edward T. HerndOn, John F. Power, D. Frederick
Buying was determined in
has onty worked back a bit
Barton, James P.; Magill, H. Lawrence Bogert, Jr., Donald S.
the aircrafts, partly because ieal and netrorhemiral fields
fart in
first nail
half OI
nf tne
the into" the $30 bracket this year. I MacFadden, William. G. McKnight, Jr., Elbert J. Evans, Harold H.
of good profit figures and also Tn
in iacx,
in thp
tne nrst
Denartment Stores
Young, John Ellis, Basil B. Elmer, Robert P. Walker, John W.
because of the many new gov¬ year chemicals provided
I Sharbough, Dwight C. Baum, Willard S. Boothby, Jr., Disque D.
ernment contracts being par¬ better than a third of operat- ^as
Deane, Norman S. Downey, John W. Mackey, James A. Sandbach,
equalled its 1946
S. Logan Stirling, S. Stewart Alcorn, Jr., James B. Cullum, Jr., H.
celled out. Here, too, the new ing profit against less than this year> bolstered by good
Lawrence Jones, Norman W. Jones and Milton J. Yoeckel. Limited
peaks were prominent includ¬ 10% last year. In addition, sales for the first half which,
partners are: Thomas C. Eastman, Arthur C. Boyce, Henry L.
ing those of Glenn Martin, the liquor business itself, after however, do not include reBogert, Herbert L. Dillon, Loring Dam, Matthias Plum and Elisha
»
Douglas and Boeing which are being in the doldrums virtu- suP:s
recent acquisition Riggs Jones.
For the time being, the firm will continue to maintain New
more representative of bomb¬
ally since the end of World ?f ^dme Department Store
York offices at both 65 Broadway and 15 Broad Street, but even¬
er
and guided missile fields War II, seems to be about to in Florida.
^
^
tually the 65 Broadway office will be discontinued, and operations
than the firms primarily con¬ turn some
hmg of a corner
will be concentrated at 15 Broad Street.
'
"
g
Rand
has had a
cerned with fighter plane pro¬ which would bolster the basic
In the past, both firms have managed a substantial number of
mJdal/e
m a r k e t existence
duction.
profit position of the comunderwritings for companies in many different fields; these in¬
j
h
terms
f setm
its
*
*
*
clude natural gas, petroleum, power and light, textile, telephone,
pany
The stock during the
against international
railroad, insurance, food, aircraft, building material, shipbuilding,
Oil
well supply firms, last three years has held
ma
Machines were
Bu
mining, electronics, finance companies and miscellaneous manu¬
which have been pretty well
range of about half a dozen
Qut In fact_ the issue
facturing. New issues of tax-exempt bonds have been underwritten
left out of the bull market points despite the upsurge m
for
^
build
a
of
school, highway, bridge and similar state and municipal
up to here, were in good form. prices generally from 1953 on.
£ .
h ,f
?
t
purposes.
National Supply was able to
For the period from Jan. 1, 1955 to date, the two firms had
sprint to a new peak on a
the
500-520
where the average
Q
,
,
,
.
,
,
^
^
underwriting
steady Improvement in
LAMB0RN & CO., Inc.
99
WALL
STREET
'ZhS?n«2°W P°"" ™S «»'»'■
^
sales
*
NEW YORK
5, N. Y.
The tire
gone
—
Refined
—
pretty
are
*
makers, too, have
in for diversification to
end their
SUGAR
Raw
ft'Skrf'TS
earn-
dependence for their
'"1
Exportm—Import•—Futurem
men i
ment
and
ana
would
some
Pa*ed for this year largely
because the benefits of the
perger
Sperry with Rem_
seem
o7the^^results P^r
01
tne
to indicate that it
helped mightily during
vear
DIgby 4-2727
for
now
tlio
results
In
oars
o
r
.
,
in the
[The
views
placement
issues
participations
of
about
approximately
aggregating
For the same period, their combined participations
municipal bond issues totaled about $150,000,000.
P„A<I DilMlaNA> f Lrrnr
II66
UliSSUS
2
include "Rules of the Road," "The
Compass," "Practical Chart Work,"
anc* other pertinent subjects.
of the United States Power
Those interested in attending
The North River Power Squad-
ron
earnings
Squadrons,
inarewhich
many Wall
Paul S &
Morton
o
Street
men
interested,
will may
Peter contact
P. McDermott
Co.,
statements.
a poor
conduct
exvressed
a
piloting
course
at the
of
44
Wall Street, New York 5, N. Y.;
in this Downtown Athletic Club. Enroll- DIgby 4-7140, any weekday after
ment will be Monday, Sept. 17, 3:30 p.m. for further information.
at 6:00 p.m. Classes will be con- The course is gratis and the in-
orticle do not necessarily at any
OnnHvaar
A
fully
private
corporate
well antici-
hfl/ir nrnfit"n7npw7/r Pnnin. ington Rand have yet to apLiquid
$5,000,000,000.
in
and
in
$620,000,000
'
time coincide with those of the
aespite tne lower car proauc-
"Chronicle."
tion, was able to report higher
as
Then
are
presented
those of the author only.}
ducted
each
from 6:03
to
succeeding Monday
8:00 p.m., and will
structors
sation.
serve
without coiripen-
>' '.■*
184
Number 5566 ;.
.
The Commercial and Financial Chronicle
(989)
Outer
Tunnel to
World's most
row's
powerful wind tunnel, lashing tomor¬
spacecraft with winds many times the speed
of sound
.
.
how all have
this
six industrial wheels
♦
cluding
World's largest
outdoor turbine, producing electric¬
ity for Atomic Energy Works at
Paducah, Ky.
.
.
more
mobile engines
First
These
socony
of
every
than half of all the big turbines (5,000
kilowatts and over).
.
plant, manufacturing auto¬
on socony
mobil as a
depend
on
machinery depend
partner in its protection.
★
*
diamond-making machine,
with
of 1,500,000 pounds to the square inch
new
one
•
■
...
successful
pressures
common,
guards
turning in the Free World, in¬
Good reason! Men who
World's most automated
thing in
one
mobil's master touch in oil. It
...
challenges to man's lubrication know-
SOCONY
MOBIL
LEADER
IN
Wherever there's progress
your
plane,
your
home—you, too,
OIL
LUBRICATION
farm,
can
your
★
in motion—in your car,
factory,
your
COMPANY,
FOR
boat,
your
look to the leader for lubrication.
90
YEARS
INC.
3
it
18
The Commercial and Financial Chronicle
.
Thursday, September 6,1956
.
.
(990)-
rates
Continued jrom first page
in effect would of themselves be
as are now
a
but
yesterdays,", and thus poeti-~*
cally we approach the topic itself"
matter
of very
serious concern to legitimate business—not yet at J —"A Word of Caution.'.' i.,
^
any rate. It is, of course, to be recalled that any increase
;
-Recently I heard a definition of
in interest paid by corporations—at least all but the very
excessive
drinking:
"Excessive
drinking., is
drinking
betweensmall ones—is half paid by Uncle Sam in most cases. Even
.
~
drinks."
present rate of 4V4% to 4VX% is about average for them.
They have often averaged substantially higher than that
for considerable periods of time which were not regarded
larger part of it is often paid by unincorporated busi- ;
ness. It is
possible, of course, that it may presently prove
difficult to get funds for many purposes at all, or could
be if restrictions are carried far enough, arid business or
the consumer may presently begin to worry about what
the future holds. In this way, of course, the general state
of business could be affected, possibly considerably af¬
fected, but such is always the case when there has been
particularly unusual. The story is much the same with,
stock exchange time loans. The record for the years prior
to 1930 yields very few, if any, instances of commercial
paper rates as low as they are now.
as
What the Record Shows
Treasury's throughout the 'Twenties were much
often above and even with than below the current
Go back as far before the New Deal as the record
Short
more
rate.
and no instance is found of high grade corporate
yielding as little as they do right now. Yields on
longer term governments were historically4 low through¬
out most of the 'Twenties, but they were for the most
too large a growth of the use of credit throughout the
community*
Why not face this altered credit situation calmly and
J in historical perspective?
part all higher than they are now. Further search of
records would without doubt yield other facts of a
rates
of
reason
In
a
dearth of demand.
number of other respects too,
a
there is need for
perspective at the present time. It would be helpful, for
example, if recent actions of the Federal Reserve were
viewed in the light of history, and particularly in light of
current conditions. As a result of the increase in the price
gold early in the New Deal years and of events of which
this step v/as the cause, and, further, of changes that were
later made in the Federal Reserve Act, the Federal Re¬
serve could theoretically expand credit
almost without
practical limit. Thanks to the vast volume of Federal
obligations, now outstanding, the means of such expansion
are readily at hand.
"
*"
of
Now, what have the Federal Reserve authorities done
with all this
potentiality? Well, at the end of 1929 the 12
banks owned
little
a
than half
more
a
billion of Treasury
obligations; at the end of 1940 the figure was $2.2 biljion.
By the end of 1945 these banks held about $24.3 billion
of the national debt. Then followed some years of liquidstion, but Korea brought an about-face. By the end of 1953
the system owned nearly $26 billion. Present holdings are
but a very few billion less. Meanwhile, loans, discounts
.
and
which
advances,
years
tance
were
prior to 1953, have
of
a
outstanding at
now
dollars.
billion
over
almost
in
non-existent
most
risen to within hailing dis¬
Total
Federal
Reserve
credit
$25.5 billion is just about at the peak
of World War II.
One searches the recent record also in vain for any
that the Reserve authorities have instituted
indications
s
*
any really drastic hard money policy. In the week ending
Aug. 29 total Federal Reserve credit outstanding at $25.4
billion was $187 million greater than one
year earlier and
around three-quarters of a billion
greater than two years
ago. The authorities have of late made it more expensive
for
member
banks
windows, but,
>
far
to
borrow
at
the
Reserve
bank
known, have not otherwise put
any impediments in the way of would-be borrowers. What
happened throughout most of the New Deal and Fair
Deal days was that broad expansion of credit on the basis
of enormous gold
holdings was encouraged. Theije was
little serious consideration given to the
possibility that
so
as
disastrous inflation of credit
Less
might thus
Hostility
become
more
seeking more and more
absorbing funds to meet
their current purchases of durables and for
buying or
building new homes. It would have been quite possible to
finance all these demands without stint
by the simple
process of expanding credit. It could be done without
violating the conventional rules-of-thumb about gold
credit.
ratios,
Consumers
member
have
banks
been
reserve
parently, however, the Reserve
the
conclusion
that
to
means
consumer
or
to
and
the
rest.
authorities have
continue
indefinitely would be to
one
ratios
this
sort
of
Ap¬
come
tight¬
has developed in the money market is
really to be
found in an imbalance between
saving and
would
hardly
suppose
borrowing.
that such higher money
7
page
%
almost
finance
to
truth,
an
might
we
say
thought >
that credit management in recent
has
been
doing
some
months
drinking
between
drinks—credit
wise that is. Excessive in
How
come?
You
'
answer.
,
degree.
a
know
the
-
Against Abusing
Credit
high-powered selling
lines competitive demand
y
risk
of
in
and
credit
;
of
with
this
has
been
in¬
varying
have
sources
demand.
degrees
gone
along
Some, delib¬
erately
and
with
forethought.
Others, under pressures of com¬
petition—and we have competi¬
tion in credit, too — have felt
any-
forced to violate their
mini¬
own
standards and practices and
follow. After all, to say "Let com¬
mum
petition have it!" requires courage
and large wisdom.
As
of this
result
competitive
the disposition of
generally to go
along with it, the consumer credit
a
and
pressure
credit
sources
base has been weakened to
some
extent:
By
thinner
purchaser
equities in durable goods financ¬
ing provided by lower down pay¬
ments and
longer average terms;
addition, by too little
to the important factor
of "going into debt" and the more long-term projections by eight top of purchaser risk: In open account
up-to-date idea of enhancing one'g economists of the country and retail transactions, by reaching
capital values—on credit.
even allowing for a wide margin out and down for the marginal
:
of error the very lowest projection and poor risk.
Depreciated Consumer Durable
indicates great growth.
No serious weakening—yet. We
have already commented on the
f
Goods .
and Brothers. In it there are eight
in"
and,
attention
•
wish
I
total
the
knew
we
Production
Mass
of
•'
capital values held by consumers,
both
existing equities
and
the
fully
paid
for
values,
gained
Requires
soundness of total
Mass Credit
Rather
To my point—
Basically
_
^
,
wouldn't it go something like this?
Consumer
debt
is
high, it has
because
credit
and
country
which
through
use
the
ingenuity of
production
and
dishave
we
a
more
over
which
a
to
buy—on
credit.
.
is
It
with
substantially correct that
the
whys and where-
all
1
^
'
Indeed,
credit
to
one
sales
persuade
of
our
big jobs in
promotion
more
their unused but
credit resources,
is
to
try
people
to
use
perfectly
result
else.
concluding
consumer
despite what
casting in
debt
we
the
discussion
our
look
we
ahead
said about fore-
Limit
to
Economic
Thought economic
walking
more
softly
-
.
future
than
for
—for
the
wide
agreement
ahead is
longer
more
and
good
,,
Growth
anything
for I
have
an
the
third
under
our
answer
There
is
much
present
being "a
ness."
Winston
it
pressed
we
ques¬
suggest
talk
part of
share.
we
about
time for
the
great¬
Churchill
"measuring
as
the level of
to
and final
subject, the hope
ex¬
to
up
events."
Whatever
transgressions
our
have been let
hope that from
this day forward we in consumer
credit
us
will
management
measure
to the level of today's credit
up
events
resist
and
credit
which
perience
and
demands
for
testimony
the
of ex¬
statistics of all
credit prove to
consumer
be
un¬
sound.
"Purchase
.
We
offer
Equity" Criteria
no
as
manual
credit
needed
one
this.
on
sound
operations,
with
With
an
nor
audience
durable
goods
that "pur¬
equity" is one of the oldest
rules there is, and it remains basic
despite a growing belief by some
that "purchaser risk" makes
up
you
for
"no
know
goes
by
outstandings,
are
much:
up
purchaser equity"; many
qualify for credit
town
without
collateral
for
the
get enough
purchaser risk won't
of your money back.
You
the
group
just
wrote
account
retail
manual
on
open
credit.
some,
Nothing
And
but
demanding credit so "easy"
that reasonable purchaser equity
can't
be
maintained, with this
group
to
Resist demands for credit
major business recession, which
predict, liquidation of condebt outstanding should re-
none
talk
our
enormous
an
tion, mark, "So What?". There¬
fore, stay with me a little longer
pressures
a
vast than
not
dues
consumer
.
point of
with
minimum
the
lies
left
of
are
what
past
however
into
view
of
ke concerned about.
seers
past,
there is
time
as
good by all historical standards,
Sure
sometime
that
somewhat
liquidation
any
the pulse of credit health, remains
beginning—
^
ISo
its
more
enough
not
well.
as
At which
are
around
The belief that
trend—
old
chaser
fades
And
debt,
consumer
decline
omy
such
thing
of
and
would
financing
Rate
.
bad
sub-standard
it
is
No Concern Over Repayment
a
are
only be a
menace to our own business, but a
source of instability in the econ¬
pay.
from income variations than any-
about
growth
of
debt,
on
large body
of consumer credit managers have
been guilty
of high
and
wide
neglect of sound credit priciples
fores
tion
agement restricts it.
this
sub-
to
of
we
enough to know that if
the
trend
continues,
if
there
should be any sizable accumula¬
consumer
in
wider
mere
ability
beyond
debt.
and wise
the whole, people
limit debt more than credit man-
economy
people have
with
in
built
high-level
margin of income
sistence
the
debt
Actually,
into
because
and
consumer
caution together here
we
today because
credit must
consumer
through some form of time-pay- be free to grow sensibly and
ment buying;.
soundly with this growing econNo 'exact figure'can be found omy. It must not be bound by
and perhaps one couldn't be cal- excessively austere viewpoints on
culated. However, I submitted the how much consumer credit the
question to one of Commercial nation can stand, for unless this
Credit's researchers before coming is so there will be no great fuhere; and he estimated that out ture for America. Inherent in mass
of $170 billion of durable goods of production and mass distribution
all types bought on time since is mass financing, and to restrict
V-J Day in 1945, the depreciated credit too much would be a drag
stock of durable goods now held chain on progress,
by consumers has a value of someFor the longer view, the growth
where around $55 billion.
potential
of
consumer
credit
And as a postscript to this, we should forever heighten all of us
remind you that here is a huge working in it.
savings fund created out of instalBacking up for a minute, and
ment buying of automobiles and still on part two, we have left
other durable goods whose years for
discussion what
we
called
of services
and
utility outlasted "emotional arguments" about the
the payments, an impressive nega- consumer and credit management,
tion
of
the
"mortgaged future"
Well, as
anyone
working in
concept of instalment credit.
consumer credit knows, the belief
•But this isn't a place to go on that a majority of consumers are
discussing familiar thoughts about profligate spenders and full users
consumer credit.
of their credit resources just isn't
w
so. There are. ,a .few exceptions,
Goes With High Level Economy
naturally,
but
most
men
and
If we needed a single reason for women who buy on credit are
the height of consumer debt and overwhelmingly
honest and do
its
growth
in
recent
years, without if possession means going
by
another have called
upon business and the.
refrain. The basic cause of whatever
from
ference between the Puritan's idea
expansion
court ultimate disaster—and
lot
lot of awful truth in the
standards
we
have seen. Advanced technologies bordering on revolution;
new products and new ways, new
adaptations of old products and
old ways flowing from practical
research by businesses and universities: Virtually no limit to
future growth of production and
mass distribution,
of its growth: Middle and lower
Perhaps many of you have read
income groups and many of the the new book, "New Horizons In
"wealthy" have found a big dif- Business," published by Harper
to
ness
One
available
tribution
active and has been
a
in many
thing credit has become more
to
more
and
more
agreeable
people — and in this we have
another reason for debt growth.
With most, people, though not
quite
all,
debt
has
lost
the
puritanical stigma'that plagued its
beginning and the earlier years
American
recently business apparently in the belief that
hostility toward it was and is on the wane has
awful
for easier terms and lower credit
About Consumer Credit and Growth
of
>'v-".
same
there's
agree
can
To match
A Word of Caution and Praise
grown,
occur.
More
official
Continued
the
to
the
somewhat
we
sistent,
like
substantiate the assertion that current money
are
high only in comparison with those
instituted by New Deal machinations—-with the exception
of a short period in the early 'Thirties when the wheels
of the financial mechanism virtually ceased to revolve by
sort,
market
sense,
Cautions
takes you,
bonds
In
a
short
sumer
main good.
But this notwithstanding — as
the poet said, "Our tomorrows are
standards
below,
whatever the
competition. We all
have to compete, of course.
Suc¬
cess in business goes only to those
who
do
compete
successfully;
however,
when
withiq
knowl¬
edgeable limits we follow subof
■f
Volume
184
Number 5566
-
,
.
The Commercial and Financial Chronicle
.
(991)
standards
indict
'-and
in
and
set
our
competition
by
better
own
the
court
process
ultimate
Self-interest Regulates Best
we
judgment
Room
loss
for argument
Government
disaster.
control
times
in favor of
of
consumer
Moreover,
"meeting competition" is often a
big, fat, easy excuse for failure
and consumers themselves
operate
to blunt extremes in matters of
to "sell" credit.
unsound
in
ers
Proof: Interview¬
number
a
were
able
deals
to
of
actual
switch
to
24
credit
payments
could
comfortably
trend
30-36-month
months
down
tests
and
which
ally
buyers
prospective
black arid white
vantages
to
ard
all.
But
up?
Not
body to maintain sound and
sible
credit
consumer
the
sources
by
systematic¬
classification
any
accumulation of sub-stand¬
sharply
employment
together
sympathy
.
inexperienced.
for
;
of
we
our
that has shown
one
records
private
under
seemed
So
little
a
come
we
started
—
back
need
to
for
1
YY'.,''
the
Consumers, four
debt
gether
insufficient
the
we
hope
management
share
that
will
proud
the American
econ-
credit
its
omy.
questions
control
of
of
credit
business,
growth
that
in
growth
for
thp
our
there
mountains
of
in
the end
and
that
say
up those
a high road to a new
executive summit for Credit Man¬
agement.
U
mountains is
Government
standby
—
for
great
mentioned
forecasting
transgressions, whatever
these have been,
v";yixy, :yX:t
That
we
merchandise that will require bil¬
lions of credit, so it
seems
safe
enough to do a little
own
a
and
Credit Manage¬
back
economy.
For
will
be
need
to¬
correct
on
horizons
projected
„
Consumer credit trends have been
and
objectively
'
new
remains
/
first step—should
a
Qur footnote
Sometime
consumer
unsound;
as
studied
ment:
debt.
sound.
.
Consumer credit occupies
place in
con-
Total
-VyY1
meager and
have said:
good"
of
growth
we
Government
Summary
a
are
for
sumer
,
,
Jlv-J
economy—and there
reasons
control of credit should be studied
objectively and seriously.
be
seriously.
expanding dimensions of the
less
where
control
but not out of line with other
.
.
standards
up,
phase of
ment.
It is "high" consumer
debt; higher
at least than it has ever been
All of
sudden, steel buildings
a
credit managers
as
measure
a
in
down
consumer
sen¬
take
are
to go down the road together to central government con¬
trol
cut
"'•-•V
cor¬
in "non¬
likely
.
of
use
secure.
way we
A word of caution?
don't
the
on
Avoiding Governmental Control
If
consumers
—
credit when lack of confidence in
the future economy
developed and
In
gone to work to
excess—=-we weep
will help mightily.
Green, the
historian, tells us that, "The world
is moved not only by mighty
shoves of heroes but also by
tiny
pushes of each honest worker."
we
1940
self-interest have
risks; and in situations where
competitive"
at
little effort by every¬
a
credit
rect the
Measuring
sources
such conditions exist self-interest
terms.
Easy?
credit,
unfavorable
have discussed. Experi¬
impressive ad¬ has
already
for improving
him
as
credit,
watch
excess
afford.
The
buyer was shown in
,
lessens
we
enced
better
a
-
since
their
,19
on a
luxury look
new
economy
of the finest
New Stran-Satin steel walls
manage-
v
•••
We
express no conclusion on
Federal regulation
of consumer
structures
a
transfusion of
give all-steel
smartness
credit.
Yet, still under the heading of
hope I feel an urge to say this:
■
J
"
The President's request
of
.V
for study
made
to
credit by the Federal
Board
asks
that it
be
"with
the
particular
probable
controls
bility
on
available
of
the
welfare
of
Steel
indi¬
ing this study will begin with
credit
this
because
need
i
Y
;
•
the
,
are
readily
Stran-Steel
and
the
Stran-
new
Rigid Frame buildings
are
,
typi¬
con¬
controls.
We
say
there
and
serve,
America. They reflect National Steel's
.
unchanging policy to produce better
and better steel of the
in
Washington there is a clamor for
controls; and if we have read our
psychology correctly people tend
;
.
help American industry better
no
we
here
'-r-:..
of the new products
constantly
being developed by National Steel to
In that general direction, let us
hope that those who are conduct¬
>
sumer
.
cal
viduals and families."
deep conviction that
.
I
•
.
Stran-Satin
credit
general economic sta¬
and
through
purchase plan.
reference
effects
«t
V' Convenient credit terms
consumer
Reserve
ft
,*•
together at both the peak and knee.
'
the
quality and in
y
quantity wanted, at the lowest
possible cost to
our
customers.
-
-
to expose themselves to informa¬
tion which is consistent with their
prior
attitudes
and
to
avoid
information
to
posure
The
credit
consumer
perfect—nor will
Send for
picture is
it
can
never
be made into
For
on
Control
y
But with its
imperfections condeeded We should still objectively
and
seriously consider whether
Government should supervise ac¬
tively and regulate and control
credit relations between private
parties.
Past
experience in
with Government
country
credit
consumer
good.
And
credit
controls
last
this
as
-
But often these
buildings have been
the deliberate and calculated
way
in
which
Hirers obtain
credit,"
"is
crackdown
cutting business to shreds."
"plain Janes" of commerce. High¬
Rigid
ly
serviceable
newest
unquestionably,
but
Frame
and
lacking esthetic appeal.
better
Now Comes Stran-Satin
ings step out with
new
an
new
steel wall and roof, steel
an
Stran-
build¬
eye-appealing
luxury look! For in Stran-Satin,
exclusive
on
development of National
these
new
new
achieve
ness
a
of unregulated
enterprise?
The "self-interest" economies of
Smith:
In
his
"Wealth
interests
and
passions
of
free market
working in a
provide a self-regulating
men
which
is
interest
one
its
own
and
against
Seventeen
system
guardian—self-
competition
the
Stran-Satin
comes
a
pre-
corrosion
in
buildings
so
low
a
cost.
a
They
can
length desired,
sembled in multiple
smart¬
before avail¬
be
or as¬
THIS
units.
NATIONAL
zinc-coated
A
of
Nations," Adam Smith, you may
remember, contends that the pri¬
vate
and
finest
steel sheet.
*
Adam
the
are
Stran-Steel
site-styled,
of appearance never
of
be¬
glory
wide,
long,
Strong, Rugged Building
Strength? Under the smart
of the Stran-Satin wall is
easy-to-handle panels. Its attractive
ance
rib
steel structure!
GREAT
merges
a
clean, unbroken
ground to building
eave.
ideally, too, with other
It
con¬
welded and
of the
The
continuously
are
securely bolted
much
HANNA
HANNA
tapered I-shaped sections
Rigid Frame
NATIONAL STEEL
of its truth still pre¬
vails.
GRANT BUILDING
STEEL COMPANY
FURNACE CORPORATION
ORE COMPANY
NATIONAL MINES CORPORATION
NATIONAL STEEL PRODUCTS COMPANY
acting
econo¬
STEEL
STEEL CORPORATION
IRON
other.
seventy-six
IS
STRAN-STEEL CORPORATION
strong
THE
design provides
line from
LAKES
WEIRTON
appear¬
a
CORPORATION
mics yeu may say. And it is. How¬
ever,
buildings write to Stran-Steel
Corporation, Ecorse, Detroit 29, Mich.
buildings—America's
Stran-Steel
durability
the
roofs
new
flexibility of use and
resistance
and
catalog giving full information
rigid frame construction,
economy,
traditional
our
:
complete line of Stran-Steel in¬
dustrial
PITTSBURGH, S&7
PA.
J
-
•
By combining Stran-Satin and the
equally
line
power
limit¬
a
-
the outside, work better on
able at
on
New Stran-Steel
the inside.
erected in any
the
|
engineered steel structures which look
luster of its surface combines with the
in
and
finest
Steel, the softly metallic, satin-like
more
the basis of
walls
Maybe there ought not to be a
law?
Maybe we should hold the
liefs
as
unique feature of the
the
Now, however, with the
credit
—
Stran-Satin
uses.
Satin
"The
☆
Rigid Frame Construction
tures, supermarkets and many other
commercial
were
journal published
England, reported recently that
"Control
is
being, thwarted by
brick, stone,
less variation of modern exterior decor.
year,
"hire purchase"
that,
☆
warehouses, factories, storage struc¬
in
England
where
re-imposed
"Business Credit," a
—
vantages of the all-steel building for
in
and
materials
wood, glass
and
a
wasn't
manager
struction
NO builder or usercost-saving
questions the
ad¬
functional
No Need for Consumer Credit
;
new
the
a
mathematical model.
<
☆
Building Catalog
be
ever
perfect; it will invariably have
imperfections because it is human.
Credit
☆
is
opposed to these attitudes.
not
v
-
ex¬
which
;
20
The Commercial and Financial Chronicle
(992)
Continued
Plant
from first page
reach
The Practical Investment
-trial
the research and conduct of the busi- u
embody
language
ness.
lesson,
There is no profit in govern-
or
new
old:
by whom
tried,
Nor yet the last to
lay
the old aside "
•
Previous Inventions
—
To sharpen my meaning
Nicola
Tesla
came
servjc^
to
are
-
*
Defense
safely
„
.
S whinritoattng
TnTto
ing to
.
established
firmly
was
•
«
j.j!
.
,
t.
...
!
place
in
and
medicine
industrial plants.
Substitution
i
unprecedented
-:l
»
For commercial use,
-
thus far the
in
the Atomic
under
years
the
plants,
'
the
Under
Commission
._i»
-
-
a.1
total
vy vmi>
v*
v*av
HUudin£?
in
ment
of
dis-
operating
0r
installations.
the
A
..
^
or
Private
Even
The
electric
of
uses
light,
incandescent
heat
power,
.j_
a
the
materials
are
capital. It was easily
the cost of making
on risk
that
proven
incandescent
lamps
beyond
was
uses.
as I
well-to-do,
not
have
invested
in
the
Ford
his
and
horseless
carriage and the Wright Brothers
with
their idiotic flying
(the
mathematicians
having
conclusively that a
proven
far
Thus
If
the
produced
equivalent
of
uses
field
the
in
development of
be likened to
jungle which has
may
been exposed
never
to cultivation.
are
great rocks
to be removed and
deep
to be
it is ready for
filled before
crevasses
!LTmous seiuent/ whose
»arkeT5e0waCl75aveWarseaeaond
^ 7 P°we?
yearsago.
the
For the
Real
—
Cost
-
of
—
is
Research
—
—
fundamental
to
.
business
well
can
ask
and
the
investor
to
the
research
as
of
program
any
enterprise into
which he contemplates
putting his
mcney. In
private business, as distinguished from public ownership,
becomes
research
cost
both
lmproved
in
the
of
the
an
element
present and
of
the
product; it is reflected
charged; it must be
prices
amortized
-
lo^ryfv.
length of time
over
WVX.X
so
reasonable
a
a
X v-aouimuiv.
.*4-
4.
that it does not
unduly inflate prices; it should be
paid
opt
before
obsolescence
or
advancement of the art has made
the
product inferior or
of
no
value; and finally it must be generally financed out of earnings. It
is
readily apparent that unless the
competitive market or the need
for
sales
volume
STocKnoiaer
stockholder
may
limit prices the
not
have
nave
to
pay
P®r
not
Certain
proven.
We
^things
Unquestioned Future Needs
know
definitely that
make the generation of this heat
continuous. A third
established
fact is that with safeguards already known the process can be
conducted with safety.
Enormous Cost & Minute Output
The
above
facts, however,
are
Despite all I have said, we can¬
question the ultimate development of power from nuclear fis-
not
info
make
proves
present
tTi'i •
SEC
j
"
TV
■
bar-"'"t ■ J■**
'
puWic holding
to jurisdiction
subject
industrial
energy
prop¬
in
firms
10%
a
which
or
nuclear
a
more
reactor
station
supplying
utility system. It is
SEC by rule has tem-
into
the
true
„
a
.
_..
,
.
,
.
.
J
tio" in such instances, but it is
this
present
with
ownership
generating
amend¬
the
still
out
come
tion
uuu
pressurized water type. The Con-
who
despite^hhs
make
no
until
Z
hradwav in
snake
climWn^ oul
^rln
then he
tt
w—
are
governmental
totalling
watts,
now
electric
over
the
Portsmouth
,
,
.
cient
of
worldwide
m^y wel1 increase.
production
V
,
are required
operation
enormous
two
of
enterprise
«
without
being
har-
rassed by either the whip of restnctive laws or the gadflies of
socialism.
the
Just
Diffusion
papers
cost
Gaseous
J
...
generating
plants
two million kilo-
before
you
the
improvi-
for
pressurized
by an
a
-
Consumers
Public
Power
vancy permit for discussion.
•
u
T,
.
,
...
,/
,
.^ime f.or a concluS1°n- Ultimately nuclear power is
".
*
a, must and will be fitted into
Plans
companies which even
District
Tv
tvt^u
light of present knowledge must
be apparent. There are many other
facets
to
this
subject which
neither time nor immediate rele-
'
offer
now
sound
investment
nos-
asodium'graph'htiw'aksar^*°^dnow
}uorsoffer
5m$esoiind
tseb investment
pos
®'bllltleJ The accomplishment of
"letal expedited
thls end by further
niy opinion
will be
relinquishing
organic com¬
ite reactor. Other interesting
sibilities
thaof
cooler and are
the
use
pos-
pounds for both coolant and mod¬
of
governmental
tent
erator.
with
controls
security
improved
consis¬
problems;
politico-economic
an
at-
A listing of all the obstacles to- m0sphere which will provide a
be overcome and the bugs to be greater incentive to industry; a
discovered and eliminated would. gi^p increase in private research
make a paper in itself. The effects : an(j development expenditures for
ot radiation both on the fuel ma-; commerciaj nuciear poWer; more
a aad on the metal cladding extensive education and training
a J other parts of the reactor of our young people so as greatly
by o means reached tmal
increase the pool of scientists
solultion The c0^P??a^1®r[ a^a and trained personnel necessary
for
both
the
development
and
i5anJcurrent rate. Considering P f essiJ}& an(| reprocessing safe ]a^er operation of nuclear reactors
*be backward nations which are waste d sposal, corrosion of re- ; an<j piants; a constructive pron°w seeing the light literally as a^^ r parts, contamii^tion of fuel gram 0f tax renef for research
well as figuratively the co-effie:a d equipment outside expenditUres and the improve-
is very
VCX.y
,■
license
experiment with a boiling water
type; the Detroit Edison group
with a fast breeder; the Pennsylvania Power and Light Company
with
an
homogeneous and the
of the reactor, and containment of
menj.
J®
wards by conforming patent
-
from
reading
I
convinced
am
the
news-
that
the
^e^xnloratorv'and
any
cosJn§uresor
panaf.U,r
OI
Cai
f Rapacity
..
kilowatt
course
plant
a
design
5?
of
certain
built
a
can
con¬
be
firm bids have been made and
for
cepted
and
ac¬
construction.
such
However, even if built according
to plans and specifications there
pla„?
p
-
incentive
re-
regu-
yet
no
be
'
°r
„^nrun,.„
assurance
safefactSrv
commerciallv
pSfence
is
that
Inar
in
the
lr,„
mera!
utility companies discloses
outlook
my
per se
judgment atomic energy
does not at this time offer
the investor the stability of capital
or income consistent with the con¬
servatism
ments.
of
trust
fund
invest¬
However, do not overlook
imP°rtance of timing, and-I
^°. P" PP a Umb by saying
t"3* within the next decade advantageous
investment
possibili-
ry
in ope a x,—
competitive Ues will commence to appear and
needed- the within
the next 25 years only
neeaea'
e those making use of this new
ce
°
^
The history of the electric
gressive
objectives.
In
^
pd„ratpH
ceptual
as
potential
Hi"
ac
a|4.„
WattS
.
0f
rlfSicIhP lation in the atomic field to those
^
established for other industrial
J y
IS
i
lay
to
Commonwealth Edison group will
^
So as world population grows
and the standards of living are
similar to
SJIIUlctl
LU the
IUC
devel- improved, more and more energy
UVVVi_«•'
TUrill Vxo
opment of commercial electricity will be required and a source supin the days of Tesla and Edison plementary to those now available
or of trans-Atlantic
transportation 1S essential. It is of the utmost
when the Wright Brothers flew
importance, therfore, that study,
their plane at Kittyhawk. I ven- research and experiment in the
ture to say that had atomic fission ffeld of nuclear energy be connot been conceived as a powerful
tinued and enlarged. The best reand awful mechanism of war we s u 11 s
will be obtained most
might never have developed it for quickly if the team of government
peacetime uses. When you stop to researchers and facilities can pool
think that for just one
Wlfh an
a11 tne torces
fnrppo ot private
gaseous witn
of w theoretical
rather
than economic interest. The situa-
presently
huge
of
experience
Another
■
companies
external oil fired superheater; the
Allowing for greater efficiencies
^ n»w seems apparent that fossil
fuels available for steam generaUon and produced at costs which
will keep energy priced within an
economic range will be exhausted
within the next 100 years. This
assumes a continuing increase in
population and in worldwide pro^"ctlYity Pr°Jepted at even less
larly the generation of electricity.-^^
We also know that the chain reaction can be controlled so as to
are
proprietary underpublic pays directly
for both good and bad results in
^Jld
water reactor supplemented
have ' been
•
th<;
- bu.t whenever accruals diffusion plant there
Wjthuvthe time limits
insuffi- and
in
the
»
.
does not seem to be a deterrent as unfortunate the Congress before
the
AF.r
evtends
rooneration
to
adjournment did not see fit to enthe AEC extends cooperation to
nrnviHin*
every research undertaking which
either the Col.e Bill providing
tion
yet!
quickly found himself at the top
because he had to get out. So it is
with our future energy supplies.
came.
cient the stockholder does pay. In
takings
»
:
solidated Edison Company of New dence of starting a $400 million
ton of coal, and the end is York has been granted a construe- program of large reactors in the
the
he
but
whence
from
camp
nofonly
sion is sufficient to generate steam
for industrial purposes, particu-
every expanding business. In fact
it is highly desirable even in a
static
whole
are
dcarllv
the heat generated by nuclear fis-
sixth which is safety.
Research
stX
can
down
intrepid * explorer,
/o
successful
development
Of basic ideas at least five things
are
necessary. These are vision,
money, time, worth and salesman¬
ship. To these my subject adds a
actuarial
otherwise.
55
heavier-than-air" maVhirfp ^roiild ploughing, seeding and harvesting, sion and some great minds are
stay aloft) are other examples Many. of. the> original rocks are even envisioning harnessing the
of
inventions
which
ultimately s 1
there and if I may carry the heat of nuclear fusion. The situa-
liidiKei wto
men
the risk is
turn back 250 years to the
we
not
proved exceedingly profitable but
whose securities certainly would
think
time of Newcomen, whose engine
steam at super-critical pressures
will produce 3,450 kilowatt hours
i
the
peacetime
In this field there
machine
of
Atomic Energy
a
Henry
Possibilities
Theoretical
enter¬
•
and
Activities
At
nffpr
most
but. government
—
sold.
advised
are
***£
insurance
turn
turn
offer
that
-
therefore, it could never find a
wide market. Trust officers would
prise.
be
in
in
*
_
the reach of all but the
cannot
will
will
Beyond
through their participation might
1954
—
problem
insurance
is the only answer until statistical
ments, all source, fertile and spe¬
cial
of the
fives promise of uncovering new ^^urance, or the Price Bill
fac*s or leading to ultimate suer
^
cessful commercial operation.^ Company Act of 1935.
kilowatt hours per ton of coal There are now five reactor types
On the other hand, to the credit
can
treated as is the pro'duc- consumed, the contest might not under
development with others of Congress the Gore Bill setting
tion, processing and manufactur- have been so severe. Today, steam Just coming up on the horizon, up a $400 million "crash" program
s—, L.
~xi
i-t-J
4
Th#» rpapfnre in nn#»rntinr» «nr»h as
i
4U~
ing of any other kind of product, electric plants are under construe- The reactors in operation such as was rejected in the House. For
tion which through the use of the one in the "Nautilus" are the reasons which I have attempted
This is not said
do not believe anyone
can
seriously contend that
atomic energy is something which
peacetime
critically,
lamp did not find easy financing
and
was
possible only because
men of great wealth, for that;time,
were
wilhng to finance him en-
who
consumed in weap-
Enterprise
with
insurance
the limelight. The companies
small
in 1955 was $260 million, excluding the- cost of source and special
nuclear
materials
in
weapons
components
the
coverage.
2,600^1)0 ons research and tests,
.....
tirely
and
has
companies
companies
*y
erty of the government and while
s
home
every
served from government
area
into
of the weapons
vMjj' v**w
program
j^a
cost
wy V
they can be loaned or leased they
Even. Mr. Edison
where
brought
nnn
._i.
.
and
of
areas
since
Energy Commission have
clear materials in fiscal year 1955
was' $785* million, and for 1956
these costs were estimated at al-m,.~
most $1,100 million. Out of a total
estimated operating cost of $1,700
million again in 1955, $118 mil¬
lion were spent in reactor devel¬
nuclear fission can supAmended
Act Pf^lfl&Sl^cracked plant
onfy the heat-furnishing
covery.
Financial
backing -for
open the
door but by no means component of the over-all process
Tesla s-ideas was lacking because
anw
it is working against,
conswung it wide for the admission and it is working against a conit was a new field.
of private enterprise,
even
for stantly moving target.
other
to
himself
devoted
and
thereafter
expanded5
ever
essentially every farm either has
service or has it available. No job
has proven too big nor, outside of
the minimum of time.-
pounds of coal, but the substitution of one fuel for the other is
Atomic Energy Act the field not so simple. Whether the ultito Private enterprise mate use of the power be for
except as contractors for the gov- propulsion or for the day-to-day
so tar
far as
his inveirtions
so
as his
inventions were
were
concerned
America
wards will lick the difficulties in
; ;
of
record
reliability,
the opening of the Pearl Street
Station. There is no need to bring
to your attention the situation in
promise of ultimate re-
same
continuous
a
and lowered costs
uses
opment and the estimated cost for
this work in 1956 is $160 million.
Compared to these figures the
in Theory and
Practice
was closed
Edison
fi
plfi
Held
•
purposes.
Energ
Gemee%estinehou°i Mr
Tetfred'^romthe ellrtrfcai
and'
..
a
■Ma'nhattaff Pr°ject and for the U 235 is_ eq^^ent^ to
note tnat wnen alternating
current
de-
•
-
promising end
end product
product is
is
Including fiscal most
most promising
year 1956, some $16 billions have: heat and 'the competition in the
been
spent by the government BTU field is severe. It may be
under the direction first of the true theoretically that a pound of
fense
..
.
been for
has
tremendous cost nas
direct cur¬
transmitted
... ...
the
recording
improved
great interest. For instance, the engaged in the work,
cost of procuring, processing and
__.
.
The safety requirements
refining source and special nu- Atomic
relatively small quantities have
atomic
of
..
,
.
some
are
.
of war and a few isotopes which
found
Cost
development
we
frpmpndoug ro<?t
and used for light and power pur.
''»*!'
■«
as
confronted with a
new situation. To date most of the
energy
a
be
the
In
Edison, who employed him for
year or
so
after his arrival,
UoC,
,t iha iHP
laughed at
the idea of
of altornVtine
alternating
current for electric service, firm
Mr.
..
generating, plants
-
.
in
Development
Atomic
financeers had
turned him down as visionary and
.
these
to
with their long transmission lines,
^
-
•
European
could
material. Uhe
the fissionable
235,
Add
sub-cost
power
inhabitant of the
all over the Nation.
payers
"
rent
or
Tennessee
magnetic field which was basic to
alternating current generation and
in the belief that only
that
Idaho and you can commence to
understand why $16 billions has
been required. At least $12 bilan
lions of which has been for capital
Valley whose electric outlay; Thus far the only usable
part p£dd for
^ax_ end prodUcts have been weapons
receiving
cern
this country in the early 3U s witn
the brilliant idea of the rotating
motors.
indus-
pens to be one of the beneficiaries
either as a large industrial con-
^
I would
like to refer to some very notable
examples.
of our modern
even
giants..Furthermore,.the out-
Thursday, September 6,1956
.
t
if too
Be not the first
new are
present Atomic Energy Commission is sincere in its efforts to
bring priVate enterprise more and
more into
the activity, realizing
.
the supply been too
taxpayer. You have never seen as which have been financed and are
.
'
little or too late. On this record
a
credit on your tax bill profit being operated by private enter! *irst Uost Breakdown
^he utilities have advanced their
from the Post Office, net income prise,
the other, plants at Oak S The 19th Semi-Annual Report claim to. participation in nuclear
from rivers and harbors expendi- Ridge, Savannah River, Paducah of the Atomic Energy Commission
reactor practice and to that end
tures, return from investment of and the very costly laboratories at covering- the. six months ended have either committed or agreed
tax funds in REA's and certainly Brookhaven, Chicago, and the now December, 1955, for the first time to spend some $300 million. I have
no
taxpayer has ever made any already enormous National Re- breaks down some of the financial .already mentioned some of the
money out of TVA, unless he hap- actor
Testing Station at Arco, statements revealing items of leading groups which are actually
Tn words, as fashions, the
same rule will hold,
r.the
the
enterprises accruing to
ment
Alike fantastic
and
Creek
*
...
to
Clifty
results
put from the Gaseous Diffusion 5 which have been attained in this
Plant is but the end of the pro- country
above and beyond all
cessing for the separation of the others, is proof positive that the
:uranium istopes and production of-same vision, the same brains and
Aspects of Atomic Energy
plied
the
and
Kyger Creek Steam Electric Generating
Plants
are
beyond
the
.
a pro-
primal
looked
energy
upon
as
source
can
leaders and
be
com_
panies safe for the future in the
and, operation, electric utility field.
Volume
184
Number
5566
.
The Commercial and Financial Chronicle
.
,
(993)
By ARTHUR B. WALLACE!
This Week
Insurance
—
Stocks
Not all
fire-casualty insurance companies report at the mid¬
year on first half operating results, but a sufficient number, in¬
cluding leading units, have issued interim figures as to be repre¬
sentative of the industry,. Of the leading multiple-line companies
that have thus far reported, only a handful wound up in tne black
so
far as their statutory underwriting activities are concerned.
Francisco showed
,
,
Aetna Insurance went nearly ten times as deep into red ink as.
1955 first half; and proportionately the two America Fore
Continental Insurance and Fidelity Phenix, reported
even
less favorably.
And this condition in the industry was in
spite of the fact that thus far in 1956 we have had no visits from
hurricanes, which in the preceding five or six years had been so
as
rent
"little
sees
yet
that
rising
reduction in the
strike.
Where
the
strike
slow-downs, industry is
catching
ism
j
Prices
up.
caused
busy
incomes
now
end
rising, and in general optim¬
are
is
more
pronounced
than
it
earlier this year. The recent
tightening
of
credit
has
not
touched off a wave of pessimism
was
it
as
did
in
the
regard
many
these
confirmation
that
ahead—times
require
spring; instead,
moves
good
so
good
restraint
to
as
"One
boom conditions in
reason
steel strike.
,
which
rode out the
.
retail
sales
and
construction
ac¬
"In the last quarter of 1955 a claim frequency trend
developed
tivity. Despite the strike, overwhich accelerated during the first half of 1956. In addition there f all industrial output dipped only
were a number of major catastrophes, highlighted by unexpected
3 Vz %. Fortunately most steel-con¬
disasters at sea and in the air and severe windstorms in the Middle
suming firms had sufficient stock
West.
on
and liability insurance business has always been
we have faced underwriting loss cycles before.
This year, however, we have the unhappy experience of recording
an underwriting loss on all major classes of business we under¬
write except fidelity artd^surety/ ott which class the; profitable
results of recent years were substantially reduced due to an in¬
creasing number of defalcations in financial institutions and fail¬
ures on the part of experienced contractors."
cyclical
This portends
for
considerably less favorably underwriting results
1956.
•'I;6'* k>■$'
■ ■
•■<&& 'r
FIRST
HALF YEAR
Combined Loss
Statutory
and
—Gain or Loss*—
v'C
Aetna
Insurance
140
...
American Ins.
Continental Casualty.
Fidelity Phenix
—
128,:.
—
...
44f
.
Fireman's Fund
Glens Falls
—
122f
...
Ins. Co. No. Amer—
—
—2,209
...
Union
—
669
—
New Amsterdam
268
Pacific Fire
731
Pacific Indemnity —
...
92.1
5,030
90.8
93.7
3,237
97.7
107.9
100
85.2
96.3
2,840
97.3
110.0
2.271
98.1
107.9
7,638
94.7
109.1
2,810
98.4
105.6
301
97.9
97.0
104.4
1113
97.1
103.4
—
726
93.3
102.9
—
123
92.2
1013
—
1,805
Seaboard Surety
Standard
...
Accid
477
:
2,031
U. S. Fid. & Gty.—...
♦Parent
company,
unless
otherwise
—
315
93.4
1,519
92.8
S;
—
—
noted.
1,852
:
93.7
2.839
Data
in
,
of
/f
statutory
•
f
;
Request
Laird, Bisseii & Meeds
Members New York Stock
Members
ZO
American
BROADWAY,
Telephone:
Bell
Exchange
Stock Exchange
NEW YORK 5, N. Y
BArclay 7-3500
1-1248-49
Teletype—NY
CL. A. Glbbs,
Dept.)
Stocks
Manager Trading
Specialists in Bank
/
"
t
to
the
speedy
Head
Office:
West
End
t
The
Bank
and
in
in
description of
business.
Trusteeships and Executorships
also
undertaken
steel
needed.
delivery
goods prices rose only 26%
at
At retail the rise has
been much less,
reflecting a nar¬
wholesale.
rowing
of
distributors'
margins.
of
range
producer durable goods than
in steel prices lies in the
greater
over-all
In
stability
Depending
situation,
absorbing higher
are
marking time
their
on
are
others
until they can determine the full
extent of their cost
increases, and
still others, as in the automobile
industry, are holding the line on
prices of current models but plan
higher prices on forthcoming new
Soft
"Moreover,
J.
Spots
some
the economy.
been
weaker
um.
On
the
whole,
costs.
price increases on many of
products because of highly
competitive conditions and con¬
resistance. Where increases
sumer
in
efficiency
have
and
lowered
productivity
higher
unit
costs,
steel prices have often been whol¬
ly
partially absorbed;
or
pres¬
have
sures
tion
of
the
often
higher
of
expense
forced
absorp¬
materials
profit
costs
Profit Squeeze
Some
;
this
observers
squeeze
have
viewed
profits as im¬
periling the high rate of business
investment which has been one
on
the
of
mainstays of our prosper¬
However, a substantial share
ity.
of expenditures on
equipment
plant and
new
probably a larger
share than is generally realized—
for
goes
■—
modernization
and
the
Bureau
ity.
Business
men
<
have
recog¬
nized
increasingly in recent years
that to stay competitive
they must
redesign products, provide
newer
machinery, streamline operations,
and
efficiency and productivity.
of",; industrial
reached
peak
Aug. 21, up
July, following
three months of relative stability.
in
the
week
about
1%
retail
other
been
a
new
ended
from
food
prices, but prices in
major categories have also
edging upward.
rise
in
brought
1,250,000
mobile,
chinery,
with
of living
cost
automatic
3
of
creases
the
to
5
wage
in
in¬
to
about
the
auto¬
cents
workers
aircraft,
and
escalator
electrical ma¬
other
indusutries
clauses
union
contracts.
wages
will
in
,
higher
the
demand-pull
'
"
for
cost-push
add
otherwise
promote
"At any rate, there is
dication
little in¬
yet that rising prices,
profit margins, or tight
policies
money
causing "a
are
measurable reduction
rent
greater
as
pinched
in
the
cur¬
capital
goods boom. Nor is
reduction likely to be
brake on business ac¬
inventory
much
of
a
tivity in the second half. The gen¬
eral atmosphere of rising
prices,
employment,
and
income, heavy
consumers,
busi¬
and government, and wide¬
spread optimism and confidence
demand
from
ness,
seldom
hand-in-hand
goes
with
inventory liquidation. It is more
likely to lead to an inventory
build-up, accentuating the strain
on
the nation's
resources
of
man¬
materials, and industrial
capacity, and adding to the pres¬
power,
sure
credit."
on
/■;
,
Reynolds Adds Two
>
(Special to The Financial Chronicle)
their
to
still higher prices.
and
in
These
turn
re¬
of
existing facilities
than than for expansion of
capac¬
wholesale
prices
at
margins.
of Labor Statistics broad index of
commodities
in
even
firms where such
cost-cutting has
not
occurred, competitive
placement
soft spots per¬
Prices have
recently for copper,
lumber, synthetic textiles, and in
some
localities, crude petrole¬
sist in
©ther
these
competitive
firms
of
addition^ producers have lim¬
ited
consuming industries.
schedules. It will be many months
It remains to be
of
record-breaking em¬
ployment and the pattern of sub¬
which
boosts
wage"
its climax with the steel
settlement it is little wonder that
£3,104,687
every
> wide
a
before this situation is cleared up,
■
£4,562,500
£2,851,562
exchange
of
uncertain
and
stantial
Protectorate.
conducts
banking
types
reached
Brancht
Fund
Reserve
for
up
products, from small components
to
heavy machinery.
However,
the price advance is still far from
being general, even among steel-
Power
Uganda
Capital
Capital
were
has
"Between
13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Cevlon,
Burma, Aden. Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-
Paid-Up
opportunity for catching
up ; with
other cost increases—
labor, raw materials, and freight
—and by the end of August
prices
SAN
James
FRANCISCO,
E.
Stewart
with
Ryan
have
and
Calif.
—
Norman
K.
become
Reynolds
&
associated
Co., 425 Mont¬
gomery Street. Mr. Ryan was pre¬
viously with Dean Witter & Co.
Resistance to Spiraling Prices
26
Authorized
an
"The
peak.
new
of
Wages/ Prices, and Purchasing
Bishopsgate,
London, E. C. 2.
land
rise
particularly in structural steel.
BANK
(London)
the
income
is
setting new
records. In June, personal income
achieved the seasonally adjusted
annual rate of $324 billion, top¬
ping June 1955 by $18 billion. As
consumer
Government
industry also ad¬
August,
while
"Consumer prices have likewise
tended higher. After three years
close to the record levels of
stocks
,»H
Kenya Colony and
on
seasonally
a
Heavy goods lines generally are
plagued r with
unbalanced
steel
97.2
column
■
during
resumption
of
steelmaking and the continuing of virtual
stability, during which
heavy retail demand promise a the BLS consumer
price index
boost in
over-all
production in fluctuated
fractionally within an
August and September. The steel over-all
range of 1%, prices have
industry's recovery has been as risen 2% in the three months
rapid
as
repairs
and
wildcat ended July 15 to a new record.
strikes would permit; by the end
Officials anticipate a further but
of
August its operations
were
more
moderate
rise
in
August.
back to 96.5% of capacity. Retail
The
three-month
rise
has
been
sales in August appear to have
due primarily to a jump of 5% in
ing
INDIA, LIMITED
Bankers
New York
"The
on
their
"Inevitably, the strike intensi¬
fied the difficulty which certain
industries were having in obtain¬
102.0
NATIONAL
Circular
B
consumer
increased
of output
adjusted basis.'
show another
65.5
.
97.4
■
v.-.-
Bankers Trust Go.
goods
rates
100.7
102.2
81.0
867
.
data.
("Consolidated
thousands.
329
—
...
equipment and
durable
preceding three months, and
officials predict that
August employment figures will
*
St. Paul F. & M
production
the
101.2
,
1.828
—
11
Northern Insur.___„.
108
ducers'
held
106.4
2,015
—
82
—
—
—
58
...
5,346
102.2
maintain
government
2,565
—
Fire Association
108.0
—
283
—
...—
104,1%
97.8 /
5,766
...
Continental Insur
Federal Insurance
98.6%
819
—
238
;
1956
:
—$4,789
—
—2,555
Bankers & Shippers..
National
$489
—
Agricultural Ins.
1955
1956
1955
Expense Ratio
to
July;
manufacturers
of
machinery and most other pro¬
and
one
hand
during
"The property
-
aluminum
vanced
in
July, and, on a
seasonally adjusted basis, so did
in the semi-annual income
report of Fireman's Fund Insurance Company:
up
prices
goods
in¬
Consumer durable
48%.
and
Other steel producers soon fol¬
Prices and wages in the
Total employment set ■models. /.,/•/,v
record
new
a
with
ease
while
finished
6.
costs,
feeling of
boost),
"Part of the explanation for the
slower rise in prices of consumer
times lie
that they
them
July
$8.50 per ton or 6.25%,
announced by U. S. Steel on Aug.
some
keep
for this
most of the economy
a
*
and
averaging
a
from getting out of hand.
optimism is the
commerce.
The most important of these
the
boost
in
steel
prices,
the
ises to be intensified this
year by
the
after - effects
of
the
steel
toward carelessness that
Probably it is all best summed
in¬
re¬
lowed.
cur¬
capital goods boom."
underwriting results; and probably not the least important con¬
tributing factor to the unfavorable showing has been the tendency
industry and
price
"A great many durable
activity which usually gath¬
goods
speed after Labor Day prom-- producers found in the steel
price
ers
/ But other developments had taken place of the hurricanes;
First, fire losses rose sharply. In the seven months through July
of this year they were $54,784,000 higher than in the same months
of 1955, an increase of 10.3%.iln the mid-west there were some
very costly tornadoes; the fire line experienced its increase in
losses along with the going into effect of rate reductions. Most
major lines of business showed some deterioration in statutory
accompany
of
wholesale
prices of steel mill products
(not including the latest
creased
wholesale and
at
1947
80%
price
ness
costly to the insurance companies.
to
at both
between
producers'
prices of several basic commodi¬
that "the seasonal revival of busi-- ties firmed during the Suez crisis.
the
seems
indica-.
The monthly report on Business
and
Economic
Conditions
states
companies,
.
City Bank
measurable
-
,
in
announcements
creases
prices,
pinched profit margins, or tight
money
policies
are
causing
a
\
'
ous
"Monthly
was
loss of
a
September
experience
that
1956
a
tail.
thus far), while in this year's half it showed a loss of $7,638,000.
profit of $2,031,000 in the 1955 period into
$2,839,000 in 1956, a change Qf $4,870,000.
L
?
the
tion
The casualty part of the business suffered less than the fire, yet
the usually profitable showing of United States Fidelity & Guar¬
a
result of
a
al
consolidated reports for the
anty turned
rose
as
Looking into the second half of
statutory gairi of $58,000 (parent company; but
1956 first half have been issued
a
ity
Bank Letter" of the First Nation¬
For example, in the first half of 1955 Fireman's Fund of San
few
is
1956,
And it is surprising that the shift from black figures to red should
be so pronounced a change from the like half-year of 1955.
:
V
"The
First National City Bank foresees
inventory build-up accentu¬
ating the strain on manpower, materials, and industrial capac¬
general atmosphere of rising prices, em¬
ployment, and income, heavy demand from consumers, busi¬
ness, and government, and widespread optimism and confidence
v
s
which they spread and the extent
to which they are absorbed.
Intensified Seasonal Business Revival Seen
Bank and Insurance Stocks
21
the
recent
However,
third
the
of
roughly
advance
in
price
how much
increases
Charles P. Hazelwood
in
steel and other basic commodities
Charles
will seep through the economy to
the retail level. The inflationary
President
potential
in
boosts
speed
is
of
such
basic
price
largely a matter of the
the
intensity
with
and
We
might be expected, consumer ex¬
penditures also have risen to new
heights.
seen
are
P.
Hazelwood,
Carolina
of
Securities
Corporation,
with
headquarters
City, passed away
Aug. 29 at the age of 61 following
a
pleased to
New
brief
York
illness.
announce
that
MR. GEORGE J. ARNOLD
one
has become associated with
dollar
us
as
sales during the first half of 1956
represented
than
The
question
of the
in
prices rather
physical volume.
now
is: How
buying
ahead
rising
will
prices
in the
dissipated
power
be
how
much
be left to support a
ing volume of production?
grow¬
and
will
"Business
has
DEALER RELATIONS REPRESENTATIVE
much
widely anticipated increase
consumer
months
on
higher
increased
been
news
in recent weeks
highlighted by
numer¬
Ralph B. Leonard & Co., Inc.
25 Broad
'
Vice-
Street, New York 4, N. Y.
Telephone: DIgby 4-7485
Bank and Insurance Stocks and
Special Situations
2°
frnm
rnrttinueri
'•
3
naap
fuyt
'
V
,
[■
Corporate Finance
Characteristics and Changes
of
current
not considered funded
to prevent
also^ limited
dJbi
funded
becoming
their
hi
debt
in mind
Keep
bv reirawals
from
one
another, but this type of
fore
customers
holders,
he
well
as
over $440,000,000 of new
has been raised by this
Company, which compares with a
stock-
as
money
loath to redeem
was
variation is by far the exception 5^2% and 6% preferreds and sell total capitalization of $307,000,000
than« the*»rule:
One
im-
them
a
4%
stock
for
fear
that
variation
in
common
stocks is the preemptive right, but
I should like to talk more fully
changes in money markets might
drop the value of the new 4%
stock substantially and thus cause
about
a
portant
that
little
a
later.
great
deal
these people.
,
Redemption Rights and Call*
Premiums
because
taken
ill
of
will
His point
other
less
equally in case of trouble,
infrequently a company must
covenant to
maintain
working
rank
Not
Financing
and
ago
today
substantially
at the end of
Growth
well
companies
on"
.
Company
..
«
„
mn^fdiffi
the
.
fman'
,
„
T
"Jnuid likl t!
a
1 interesting..
tPn
^b°Ut the
examnt
an
♦ad -beGIi *
t
M
many years
factlfy
Sgiged^^eman?
enSfeflh?
mfchiLs nhotnron?
craDhic
papers
After thpwar
a
major method of reproduction
theJy underto0k
n^ew
graphy
This
to
charge
these
the
develonmen#
new
£ad" IwrPSse MeSSl
m™aYement
the
wantedn
strengthen the Company's reeular
business
and
improve
existing
facilities
and
as
both
for
its
Srior
addi-
new
time
the
and
assets
nreforrS
nrovide
funds and at the
to
its
capital!™
sell SI 0(10 000 of
to
sak?
own
stroneer base fo,
a
premium is hen gradually scaled Company was then converting its waa £
down over the years Variations entire system from 50-cycle to"stoclc^
from this general pattern usually 60-cycle voltage. This involved a needed
are the result of changes m money very substantial cost but it was
to
and
develon
the pattern has developed to an 45% debt, 28% preferred stock developments At the
initial redemption premium ap- and common stock and surplus of Company had a total
proximately equal to the coupon 27%. They also were faced with tion of only $2 000 000
or dividend rate and this initial an unusual situation in that the U* 'ud^
market conditions, and become an permitted
ShSS
SSwSrLwI
promised to become
fourfo
.
business is overdoing its borrowfog js a question no one can
were sold and then leased back, answer, but concern about it has
The lease rental becomes an op-been expressed in certain quarerating expense and as such comes ters. The fact is that the answer
in ahead of interest on the de- can only be given with respect to
bentures. Many other provisions each individuaflcompany in relaand restrictions are used in cer- tion to its own situation and type
tain situations, but all provisions ; 0f
business, s To
generalize
is
are basically aimed at three things; meaningless
beyond saying that;
—maintaining the prior position a company should certainly avoid
of the debenture, preventing im- a debt that, could endanger its
proper
dilution of its position solvency in
rough
times
and
through creation
of
additional should always stop borrowing at
debt, and preventing damage from a point short of its maximum
rear
door
dissipation
years
1946.
among
was
capital at a minimum level. The
theory back of this is
to permit
Debt has been the bulk of cor- his security is taken away from consequently, did not contemplate
the debenture holders to move in porate financing, and its use has him. Since it is obviously highly the necessity of raising substanandtry to correct the situation if- been ingenious as well as heavy, desirable for the issuer to be able tial new money after the War. It
tilings get bad enough to result in The serious inflation of the past to redeem a security, the penalty soon became evident, however,
violation of this covenant. Lim- 25 years, the threat of more infla- » readily accepted. Years ago, the that the growth of California had
ilations
on
dividends are also tion, the impact of high corporate call premium^ was .normally a only begun and by the end of 1946
common, as
are restrictions on tax rates and the availability of fixed figure, often a high one, and ,t become apparent that instead
sale and leaseback of major prop- iarge sums of institutional funds ft
usually remained steady 0f a decline in activity a further
etties. Appropos the latter, you for buying debt securities have all throughout the life of the issue. In growth boom was in process. At
can readily see what would hapcontributed to this result. Whether recent financial history, however, ,he time the Edison Company had
pen to the senior position of the
debenture if the major properties
10
capitalization is
stronger than it was
who had done it experienced
: An almost universal feature of substantial stockholder irritation
senior securities—bonds,cldeben- when their new 3%% and 4%
tares and preferred stocks is the stocks sold in the 80's and 70's in
right of redemption by the issuer. 1946 and 1947.
in exchange for this right of the
;
,
than
its
issuer, the buyer insists upon a
Too Much Preferred
penalty or redemption premium.
The Company was also conor $7.50. Under this pattern the The theory is that the buyer has cerned with the possibility of a
company
can raise $10.50, of spent time and effort in deciding decline in business activity in
which only $1 is common stock to buy a security and he feels that Lower California from the high
investment.
.he should be paid something if peak reached during the War and.
Wder is a genbank loans would
that a debenture
eral creditor, so
to
each dollar of common
For
convertible
stocks
rather
stock, a company can sell 50c of
preferred stock. • On" this $1.50 it
can then sell 50c of capital notes.
Then on this $2 of junior money it
can
sell a $1 of subordinated
notes; and on this array of various types of junior securitiesnow
aggregating $3,, it can borrow
senior money at the rate of 250%
a perassets or
Sometimes
borrowings
fart
this.
a
to
tangible
net
worth
net
debt
limiting
formula
rentage
usually
debt
funded
Thursday, September 6,1956
. * .
without voting powers and com- people in his territory, and there- to date
mon
class
Hitinml
T/ie Commercial and Financial Chronicle
"
(994)
rame
tin£
xw^ohv
important ■_ factor .in pricing and tional expenses to operations. This SiDated nromise
selling an issue. In periods of low meant that its earnings for the """""aiea promise,
yields on bonds and preferred
stocks, the buyer is less concerned
with the possibility of having his
investment taken away and the
time
being
would
be
depressed,
g
Development With Least
Expenditure
but it also indicated that when the
job was completed, its earnings
would automatically be increased.
The
Comnanv
it
^ovideallthe
no;
raonw
mnM
nofdid
offsets limits. Some additional borrow- i^c^ ^ow ^11 pnc« at^ ^ o£ ^ combination of cir_ to
5 ^"graphy 1properly
dTvWend pa^ente
" -kept
payments,
ketf in Reserve
took other business ateps too.
reserve gainst
against "he
tne day
oay down. In periods of higher yields, cumstances it was evident that it
huver looks for
orotecalready had to° much preferred .It gave the basic patents to Batelle
ordinate
aiviaena
more
The
sinking fund
is
very com-
when
money^is needed and bor-
tOfd^bentures/j While not at rowing is thd only
mon
practical way
have
learned
this
Memorial
stock> thereby effectively closing
exnerience
Sues
brad
In
1953
sold
were
marry
at
a
order to average out on changes
in
It also provides
interest rates.
lev^8f ^
and investors
foe'company0buys^n (febentures
initial
calf prices, and'
rather than
fund is
•jo
o
attraction
an
fapfnr
benture
nrir-inff
;n
nftft
$300,000,000
to'buyers
Thp
^^rieraf
General
had
issue
fund which
a
and
rpppnt
Electric
Llectnc
de
de-
affected the
lin
stock as to dividends and
liouidation.
^developed
aeveiopea
in
But
irvUv
10
a
a
sinking
certainly similar in many ways to debenture indentures. Most of these are
price obtained.
Subordinated and
Subordinated
.
,
ct
of
,
securitv^f
Of
mrasin
use
a
a
a
prior stock
or
adverse
'
-
alter-
ation 0f the provisions of the stock
_
made non-callable for
years.
th
preferred
stock
affected
™
J
™
„
The
s„
°1 excess tunds
number of
nf
or even
lower rate.
'
„
„
l
that toe
iiiai uiiie, common siock
we
what
wp
from the
Progress
the common at
then market.
so
■
.
„
,
r
Preferred
senior money,
,
Successful
like
again
ancj
The exchange offer
less than 15%,
this
vehicle
for
to
Southern California Edison's
ExpeTOne*
point of
+A^ft GK?ear
^ ^an^uie
being deductible
pu
poses
while
dividends ai;e
view
S
for
it
tax
preferred
stock
not. Another
cousin
and
>f
finance
these
companies
three
layers
have
nrpftvwAU
pretty
well
J«t^e
estab-
pattern or rule of tnumb
tne use of various layers of se-
cunties.
It
goes
,
,
.
,
amples
of using various types
something
like
j
am
n0f
some
to
.
junior
'
going
financing
par-iE^ison
.
debentures, most of these
•
lisned
or
stocks have been used with
inJheaUKSf
verfoifoissueT
of
debt,
largely^ because or tne mgh degree
^vi^UtodJv0a
■exists toaay a
conversion
ticipating features. And again like
debentures,
junior
preferred
.
The
sinking funds, market purchase
as
on
financing
or
text
that
book
there
definition.
are
of
Southern
Company
was
in
really
California
1947,
a
of
finanis the
which
corrective
preoaratory action rather than
financing to raise
utility
industry,
ticular
company
the
artificialty
J.ommon stock as an instrument of under the
finance, since its nature and use
is substantially in line with the
It
common
is
true
stocks
three
thus opening
raising
now
During
money.
but
had
this
par-
refused
.
.,
^
of
managed
n
°
interest
money
.
L
,
to
rates
Bv
a
device
iq54G w^ha^h^Tf11
By 1954 we had built sufficient
to lustlfy ?3,000,000 of
plished with
an increase in comstock outstanding of less than
much higher price than if
holders well and at the
common
60%. It seems to me that this
Company has served its stock-
had been sold initially. Fourthly,
has maintained
the
financial
made
customer-stockholder
the
exchange
saw
ciation take place in his
who
depre-
one-half
tion in the convertible preference
stock.
As a result all objectives
were
accomplished, the most important
of which was getting the capitali-
n„
_
nancing
had
th%'
proposed
Several
Company's
market conditions. From that time
needs
and
money
years
ago
we
opportunity
to
if refinery
to be built
study
a
in Puerto Rico and after a great
deal of investigation and study
zation in shape, to facilitate sale, agreed to become
by
time
period,
from
time to time, of various
types of securities to best fit the
same
strong and sound
position throughout the
a
.
,
we
raised $7,700,000 of new money for
a company with a capitalization of
only $2,000,000 in 1946. The Company s sales have grown during
the same period from $6,700,000 to
$21,400,000, »an increase of 316%
and its net income has grown from
$147,000 to $1,162,000 or an increase
of 792%. These rather
dramatic increases were accom-
policies
owned
for
a"d Ia!S: d
was
mon
preferred
was
held
the most money
conversion, of the preference stock,
So it became a means of selling
common through conversion at a
Administrations. Since most of his
stock
shares
$1 300 000
Secondly, the .j unior long-term debt.
preference stock could now be
As a result of these steps
C0"" Iff,
thjs steP' »s PresiCent, Mr
Mullendore, was highly critical of
dwell
each
therebv raised
money.
.
!f J"n]°r TnfY ,and dierofore debentures, frequently carry other securities to meet unusual
■L om preferred
stock money; but provisions to help sell them, such cjai problems. One case«
the issuer s
te est
for
w^ebyjaised
¥, 1,300,000
for
company.
Alter
turiner
EeSS.tnnfit S?ld
was a large
and dramatic undertaking and it
at a duced from 28% of capitalization
.
i
i
share
,
.
stocks,
sold common stock under
in the ratio of one new
we
ri§hts
Financing
Hp
*
the logical way to raise it. Td do
>
Unique
b^to S a^t
Tommon^tSck simed
seemea
into
a price above the
*
•
it
p^/encf
preierence Itock
siock contS
convertioie
,1<P
pomt of view of the
steps
velopment at the least expenditure
in
/Jftprth
both
of the outstanding 5Vz% and 6%
majority vote.. Some preferreds
Turning now to the use of treated as junior equity and from
Jimit debt and some restrict divi- various types of securities, I re- the point of view of additional
dends on the common. Normally Peat again that the numerous senior preferred stock it could be
a Preferred doesn't vote but quite variations in standard type securi- ranked the same as common, so
frequently the preferred as a class ties will be used to fit the needs it had substantially the same ef^akrl hppmihv lnHnltrial acquires the right to elect a °f each financial problem—both feet for this purpose asvselling
JSmnnniM nSrtirularlv
nnn
minority or even a majority of to fit the company's needs and common. Thirdly, the foreseeable
^SfiStv Thp c.ihcrHi" the Board of Directors in the to attract buyers. I won't spend end of the voltage conversion exT.X nhi Stinn ic rpaiivl ow!" event of a stipulated number of time on the more or less routine pense indicated subsequently
fipH
nSriS
frnnf thl quarterly dividend defaults.
issues of a standard nature, but higher earnings, a higher price for
\ i
A.'
you
may
be interested
in ex- the
common
and,
accordingly,
Ann
In
.
hip pf
fnr
LSflirP iQ qotiofLh In flt+I
Aarlv
«Aq mn^tiv hJ finonrS
rnmLnipsTit mnrJ rAnnntlv ii
+rni, hi
basis.
Proceeds of equity securities, bujt worked out very successfully. As
they are completely non-callable a result the following things were l« onnnnn
if their redemption is to be ef- accomplished.
First,
the
total $fa00,U00.
This
fected through the proceeds of senior preferred stock was re- alHVf
raising
a
nSp
a
Even more frequently
this we mean that bonds may be
Pfd off at a fixed call price out
foeesuboSIna?ead Se'benfore^Th^ "without meeting^earning
fasfrumentfo for^ifl^"forms iuntor'asset tests usually requires a
SS
royalty
We decided to offer to each holder aimed at the great possible de-
a'gradual ^"ale-dowm.
without consent of two-thirds of other borrowings obtained
m
'
'
example,
it is usual to prohibit the creation
,
senior
senior secui lty
O
company.
class vote
a
do certain things. For
to
■
d^>enture we have been.
—in1'fact^^the
fact, the
:
Sub-
Debt
„
4,1^
has
coihI1
hfgh
exchange
protral
plicated creature with protective
f^nHai n^ rallahnitv Rv
and restrictive provisions not dis- call financial non-callability. By
provided by requiring
,
it
use
more
U
a
verv
In many cases the security is even
mnrp
65%
greatly broadened the
market for the issue and
common
demTndine
are
in
field and sub licensed major companies
in
other
fields
on
a
,
•10
Institute
for their doing the major research
and development work, but retaming exclusive .rights. to the
Patents. It decided to explore and
expand ^xerography in its own
"to©dobr to thatvehicle oi.financTdgh
and the unusal circiimtLmpnt
nf riPht
pood thincr in^
Complicated Preferred Stock
yields and within a year or so stances with respect to common
^
mffor Mint of
Changes
were refunded at lower rates. One stock earnings made the sale of
inter^f
Turning now to pre ferre d issue was in fact refunded before common stock very expensive. We
interest fo
to fostitutfonal
institutional investors
investors
lurmnj.. now. 10 p r
even
navint?
its
first
interest Coolly
arrived at a plan that
particularly. They want a regular stocks, we again look at an in- even pay nr its _first interest saemed to be the perfect answer
turnover of their investment funds; stmment
of finance used for
po. today we: are o ce aga
tQ thjs rather difficult situation,
^ 8
,
and
a co-promoter
banker for the project.
To
a long story short, the plant
make
itself was contracted for at a
maximum cost basis, the crude oil
Volume 184
Number 5566
'
.
.
The Commercial and Financial Chronicle
.
(995)
contracted
was
term
for- under
contracts
and
longsubstantially
likewise con-
all of the output was
tracted for under long-term contracts. In addition the new company was
emption.
given
10-year tax
a
All of these factors and,
particularly
tracts
ex-
the long-term
purchase of crude
for
con-
and
sale of products, made possible a
wholly different approach to the
financing than would have been
themselves
without
adequate funds at the time of the offering to purchase the shares offered them. 'While one can't generalize
completely on this subject, I believe it is a fair estimate
that in the usual successful rights
offering only about 25% or 30%
of the
issue is actually sub-
new.
Musson, Coss With
Byrne & Phelps
association
with
their
scribed for b,y existing stockholdThis
ers.
firm
the
related
and
matters
amount
lots will be something less than he
would get for a large block, and
he also has to pay something in
the form of commissions or ex-
through
which
sold
we
banks,
to
three
major
another
$10,000,000
was
raised through the medium of debenture
sisted
units.
of
These
con-
for
penses
tion.
As
New
30
on
a
shares
of
6%
•q* Manila
stock,
basis the people who
put up $10,000,000 for the deben-
.
.
®e^te
for cash.
holders
Here is
a
case
where
90%
over
of
the total money needed for a
wholly new company was raised
through debt. This was obviously
made
possible by the contractual
nature of the proposed operation
and by agreement to apply sub-
stantially all the cash income of
company to debt retirement.
the basis of
the projected
earnings all of the debt would be
paid off in less than four years.
The pattern of this financing isn't
new, as it has been used in other
"through-put'- types of venture
such as pipelines, but I believe it
is an interesting example.
the
On
-,v,.
■
Questions Preemptive Rights
I should
to
like to
now
come
nevertheless
rights
ceive
back
of
Preemptive
required
and
nf
mpanc
wo^uf *|00^ deal
a
are frequently
company's charter
not infreouentlv
are
required
S3"partolarlyif
byState
,
a
v,nr>/1
P
Phei™
to
comes
after
manv
hncsn„co
"°
will
tainly f0Gl better about
what
cer-
he
Yet the experience of these
substantial discount rights offermgs is that they act as a serious
until
more
cor-
He has remained there
the
present
pYppution
of
Bombardment
Force
let
advantages of
look
us
at
the
straight cash of-
a
fering to the general public.
In
the
during?
Wing
and
the
in
of
the
is
silent.
There
cash
to offer it in the first in-
or
its
to
stockholders
in
theory, preemptive rights
protect the stockholder
having a company sell a
large amount of stock to others at
an unduly low price, thereby diluting the equity position of exasting stockholders.
I am sura
that
history would record instances of this type of thing, but
such an action is obviously bad
to
from
and
on
on
the
me
such
nart
pari
nf
ot
disclosure
aisciosure
of
OI
management
mandgeinexn,
toda.v certainly
most unlikely in view
be
the
tne
of
oi
Securities
which rouxe
route
wmcn
requirements
requirements
Act.
to
10
The
follow
ioilow
fgsI
is
lb,
a
combat
time
GPU
made efforts
factory price,.
War,
have
heen
of
All
in
in
of
oi
has served in the
capacity of advisor to
^method
in ™y opinion, constil;ute the
jems<
in
in
many
1941, he
Chairman
was
Qf the jsTational Municipal Committee of the National, Security
The
large
stockTraders
Association, an active
holder. such as; institutional buymember of the New Jersey Bank.
ers hke investment trusts, msurAssociation,
the
Municipal
ance companies and others can
Bond
New York
the Seusually be found on the side of ±5°1™ Club of
OI
r
'
®
stockholder.
.
r;«hfQ
rights
leason
sition
nffpHncr
for
tho
cimnio
th<! s™P?e
tneyoffe^
are normally
in a po
to
take
up
*
the
new
stock
^
,
are buying the additional stock at
.
cneap
nrice
As
in
sn
.
York and the Bond Club of New
T
•
Jersey,
H
thp
h
a
nenas served
servea as
as a
ber of the
j
,
.
curity Traders Association of New
Board
mem-
mem^
of Governors of
two
aforpmentioneri orssni/u-*
tw° aiorementionea
orgamza
tions,. the latter of which he is at
to
a
buyer, but could
a
bill
Company
v/as
as
a
the
kinds
with
numerous
assets
operating properties sold
that
the
affiliates
paper
system
have
includes
now
only
the
number
of
operating subsidiaries system
Consol.
1
..
Preemptive Theory
vs.
The basic argument in
Practice
favor of
pertinent
and
factors, both tangible
intangible, in selecting their
rights offering to course of action when freedom of
they are then choice is available to them.
in a position to purchase their
I
hope
my
comments
have
pro-rata share of the new offer- pointed up the myriads of variaing and thus maintain their posi- tions that exist both in the maketion in the company. To the exup of securities and in their use.
tent that they are not able to exWhile a good deal of the subject
ercise their rights, they are in a
of corporate financing is techniposition to sell them for cash and cal, it is not magic or mysterious.
thus recoup an amount equal to
The technical side is learned in
the dilution they suffer.
This is this field as in any other
business,
fine in theory but in practice it and thereafter its
practice is esdoes not work out quite that way. sentially the use of some
imaginaThe vast majority of stockholders tion and a lot of common
sense.
a
preemptive
man-
stockholders is that
too
past
1955
2.71
1954
2.42
are
Approximate
Paid
Price
$1.80**
'V''—'.
'
1.73
40-33
1.70
35-28
2.30
1.60
30-24
1952
2.17
1.45
28-21
1951
1.84
1.25
21-17
1950
2.19
1.10
18-15
1949
2.00
0.85
17-11
1948___.__-
1.40
0.80
15-11
1947
1.40
0.80
17-12
the
1.25
12
months
ended
corresponding
earnings.
■>
0.25
June
3ft, 195fi, .$2.87
period.
Of this
previous
was
24-14
earned,
amount
51c
compared
reflected
"
■-ift. **Current
rate.
While
the
.V"',"
■
J'
\
..
'
' .V,
•
-
territory.
During World
II, he served for four and a
half
years
0f
part
Major
in
the Armed
that
of
time
the
as
Armed
Forces,
Sergeant
rank
of
Master
Sergeant. He is
member of the New
ers
the
a
Jersey Bank-
Association and the Bond Club
0f New
for dividend
payments
other purposes have
or
reflecting lower Philippine dollar
of the
its
.
,
declined recently,
and
reserves
rapid industrial and agricultural expansion.
investment
dated
in the
Aug.
In
15, Mr. Tegen stated:
Philippines
attractive
as
and
the letter
"We
regard
have
every
Rantoul, limited partner
in F. S. Moseley & Co., passed
away on Aug. 26.
to
our
con¬
fidence in the political and economic
stability of the Philippines."
Because of high fuel costs, the company is
considering the
struction of
atomic power plant for the Manila Electric
an
which will require an
the
c
Capitalizatiori of the
as
con¬
System,
agreement between the United States and
Philippine Governments.
approximately
GPU
i
system
as
of
March
1,
1956,
was
follows:
Millions
Percent
$300
49%
Stock
75
12
244*
39
Parent
Company Common Stock Equity
(9,703,000 Shares)
V
is $27T
$25
;*Book value is
The GPU
this
year
of
$619
i
a
share.
ties
or
100%
1
system required about $56 million for construction
which
$18
million
was
generated
internally.
remaining $38 million is being raised through sale of
The
senior securi¬
by bank loans, and the company does not plan to sell any
stock until early next year.
common
GPU
pays
the
Neal
.
the requirements
Philippine Government for capital goods in connection with
stockholders
Jersey,
Neal Rantoul
S2.56
Philippine
earnings of the Philippine properties continue to
gain, net cash receipts brought from the Philippines to New York
Forces
School, Fort Nnox, Ky. with
w.th
.
that
in
Range
39-34
1953
the
formerly associated with
Ingen and Company for the
22 years, representing them
War
a
so
■
Dividends
$2.90 Est.*
1946
*In
in
was
B. J.
revenues
V,
>
Share
Earnings
Preferred
that
and
follows:
Subsidiaries'
however,
investment,
away,
otherwise disposed of,
larger
than those of the old Associated
Gas system.
GPU itself has had a fine record
under the constructive leader¬
ship of Al Tegen and other officers. Since 1946
revenues have
increased about 124% and net
income nearly 200%. The
common
stock record
(as compiled by Standard &
Poor's) has been as
agements of companies have been
conscientious
in
examining
all
-
cleared
sub¬
billion
a
holding company, four
major domestic operating
companies, and one in the Philippines.
Associated Electric
Company, the last of the sub-holding compa¬
nies, was dissolved May 7, 1956. Despite the
drastic reduction in
holder
present the Secretary
Secretary,
over
one
Long-Term Debt.._
al-
at
companies,
been
or
Subsidiaries'
many
not
carried
sub-holding
and
of
experience,
manv
so
are
satis¬
a
subsidiaries, and
permitting.GPU to retain
subsidiary.
ways argued or decided on logic
Mr. Coss will serve as Sales
and mathematics. It has been my Representative in New Jersey. He
in
obtain
enacted
which is better for the company,
and what is best for the company
is
likewise
best
for
the
stock-
As
not
to
a
price.
j
into
recent years.
find
opinion, a question of judgment
in each particular situation as to
thinks, these matters
*
merged
the SEC had
order
various
school
their financing prob-
$174*
*'
was
Pennsylvania
accordingly. (Brockway Light, Heat &
in the table.)
number
adopted
the School Board of his home
£ logic and practical- districts
1^es favor the cash offer
J™
...
test
mv
my
0f
T
Power
included
companies
to
^ life-long resident of
Bergen
county, he is a former President
adjusted
not
20
;:;;v qqV/;;,,':..
"eliminations."
being
<
167
sidiaries
dollars.
he
addition
20
The GPU system is a
survival of the old Associated
Gas &
Electric system, which at one time was
reputed to have
trading and underwriting, he has
in revenue financing
iu New Jersey. In recent years
laws
In
the recent session
Intelligence
in
47
dispose of the SEC
order, permission
sought from Congress to keep these
foreign
was
been active
new
revenues
For many years
Rescue Officer.
the
15
ordered that, under the Public
Utility Holding Company Act, GPU must
dispose of its Philippine
subsidiaries, though the order was not pressed until
1956___
this
million
small subsidiary, is
very
$109
32
Northern Pennsylvania
year
the latter's
Pacific
the depressing influence on the
community and
market will likewise be less.
conduct
would
the
The over-all cost of sale to
ss-
the company will also be less and
In
faith
laitn
^ilutj.cktv to present stockholders is
its
discretion.
seek
Power,
deducting; $!>
May this
Year
During
67**
^
on
reefosell
.stance
After
**In
those
are
$42
Power & Light__
20th
stationed
was
as
313th
the first place the offering can be which
permit
both
public
and
who
believe
that
preemptive made at the then market for the private financing of sewer ami
rights are sacred and an inher- stock.
By being offered at the parking revenue bonds within the
ent God-given privilege of com- market instead of at a subscrip- State.
He has pioneered in this
moil
stockholders.
I
personally tion price below the market it is field of activity and has helped
do not subscribe to this theory, obvious that fewer new shares make it
possible for many muhiit rather believe that a company
have to be sold to raise the same nicipalities
to
obtain
this
fishouldbe f
stockf or amount of money. As a result the
nancing.
charter
v
•;
the Island Qf Tinian in the Central
Since
fo contrast
with
vears
when he served
a'First Lieutenant
^^^Theorange^ than'he ^"ved' as a
^^
Air-Sea
strai^ht Cash Offering Advantage
time
four
World War II
ln',Air
^'forthestock
itself and
this
a year or
to
Areas
Electric, etc
Manila Electric
"
more, he will partment.
probably feel better and
by
(Millions)
V
1.;"
hlectric,
at
'
warrant?
rights
by
and
him
oretical value of the right is only trader in general market securi15c to 20c per share on a medium ties, he specialized in bonds of
priced stock. Under these circum- the State of New Jersey and its
stances the stockholder isn't get- many municipalities,
ting much of a so-called special
jn 1938, he became associated
dividend. If the.rights offering is with B. J. Van
Ingen & Company,
made at a substantial discount to
continue the specialty of New
from market so that the rights are
Jersey trading.as .head of that de -
SSTSStine" to" exiting SockKxr
Bvrne
call
Today many
He first became associated with
rights offerings, and particularly the Municipal Bond Department
by utility companies, are at 6% or of
Lehman
Brothers
in
1930,
8% below market, so that the the- where after short training as a
rect
issue
sale df
as ordinary income.
quirement
new
the
lriends
re-
TT
might take
a
because
£
to
rights seems like an extra dividend and is usually not taxable
previously touched
on, namely, preemptive rights offerings of common stocks. By preemptive rights, I refer to the rethat
like
gets.
subject
a
*
debenture
common
this
„
jersey
Philippines:
Totals
Revenues
^
handling the transacresult of both of these
a
i
holding company controlling the
Pennsylvania:
; >
!
•Metropolitan Edison
Pennsylvania Electric
New Jersey:
Jersey Central P. & L
factors he can neither maintain;
James F. Musson
Walter F. Coss
his position in the company nor
realize a proper compensatory fig- James F.
Musson,
as
General
ure on the sale of his rights.
Manager of the Trading Depar¬
ture issue received 30%
of the
w
T
„
n
ment and Walter F. Coss as a
total stock in the company.
The
opeciai uenerii is amau
member of the Sales Department.
remaining $2,000,000 was raised
y
and
the
Jim as his large acquaintance
through the sale of common stock matlwmaticahresults, many stock
and
and
$1,000
units
a
Annual
understandable reaprice he will get for odd-
sons the
$24,500,000. 1 Of this
we
raised
$12,500,000
first
mortgage
notes
General Public Utilities is
following subsidiaries:
rights.; For
aggregated
General Public Utilities
Corp.
of
great
Utility Securities
By OWEN ELY
1
•
that
means
Public
Byrne and Phelps, Incorporated,
44 Wall Street, New York
City^
take pleasure in
announcing the
majority of them sell their rights,
the case in an
ordinary commer- At this point the small stockholder
cial venture. The total cost of the usually runs into
further trouble
plant plus the amount needed for in that he is most unlikely to realworking capital, interest during ize the mathematical value of his
construction
23
find:
(NYSE
symbol GUY)
has
$1.80 (of which 200 is allocated
yield 4.9%.
Based
on
been
selling around 37 and
to Manila
earnings ratio is 12.9, which compares with
of about 14.5.
Electric), making
the recent earnings of $2.87 the pricean
industry
average
;
,k
.,,Thursday,
elcino
rhC
September
6,1956
The Commercial and Financial
24
(996)
Continued
'
'
'4
"
from first
'
page
Generally speaking, the stock ex¬
change and financial analyst seg¬
■
r
'
•'
.
'
'I
'
•
•
•
\
•
■
;
.
ments of the financial
Securities Salesman's Corner
Current SEC Developments
i
formulated its revised proxy
By JOHN DUTTON
*•
rules
bright, at
concerned.
hand
You have
Commis¬
tees, and that the basic objectives
of
this
legislation' Will
be
sup¬
ported by the securities industry;
Extending Act to Unlisted Firms
Secondly,
.
the
Banking and
Currency Committtee of the Sen¬
at the close of that Commit¬
porate control. 2
amendments of the Securities Ex¬
the-counter markets, has reversed
positions
which
and 1950 and is
legislation.
been
it
in
took
1946
now
opposing this
Opposition also has
:
expressed - by
the
National
of Manufacturers
manufacturers:
associations
and
of
a
few states.
We appeared before the Senate
Committee in June and the Com¬
mittee voted to take no action on
the bill.
However,
hopeful
we are
that this legislation will again be
considered in. the " next Congress*
-
the Chairman of the
the only
change Act of 1934 to provide in¬
dustry self-regulation in the over-:
be ironed out in the Commit¬
can
the
ing the investing public against
misleading
statements made
in
the course of a strugle for cor¬
Limiting Exempted Securities
Another
•
area
in which
t
have
we
been
extremely busy on Capitol
Hill is with respect to various bills
to
repeal
of
Section
3(b)
„the Securities Act of 1933.
This
amend
or
ate
section provides that the Commis¬
tee's 1955 stock market study, en¬
sion rtiay from time to time by its
the first complete and rules and regulations, and subject
objective factual study of the fi¬ to such terms and conditions as
nancial reports and proxy solic¬
may
be prescribed, add to the
proxy rules
is where there- ap¬ iting material furnished to stock¬
classes of securities exempted in
pears
to be a concentration of holders of about 1,200 large pub¬
Section 3(a) of the Acsuch as
stock
affiliated
with
soliciting
licly held corporations the secu¬ securities issued by the United
persons but hidden in street name rities of which are not listed and
States or other governmental or¬
or
by foreign financial institu¬ traded on national securities ex¬
ganizations, commercial paper,
tions, thus making impossible our changes
and
thus
are
exempt building and loan association obli¬
efforts to determine actual bene-,
from the financial reporting,
gations, securities the issuance of
ficial ownership.
This is a prob¬
proxy and insider trading provi¬ which is
subject to approval un¬
lem to which we are giving care¬
sions of the Securities Exchange
der the Interstate Commerce Act
ful thought and in which Com¬
Act of 1934.6
and certain other specifically ex¬
mittees of the Congress have ex¬
The bill, which would subject
pressed concern.
So much for to these provisions corporations empted classes, any class of se¬
curities if the Commission finds
proxies,
,
: '
having 750 or more stockholders, that enforcement of the
registra¬
I have been asked to
discuss or debt securities of $1 million or tion
The
Salesman
client who purchased a stock on which
a
our
Commission, re-*
opinion handed down in January sponsive to legislation which has
1956, the Court said: "The Con¬ been in the Congress off and on
over the past ten years,..and to a
gress has clearly entrusted to the
was * introduced
by
Commission the duty of protect¬ bill5 which
example which illustrates how the authors
typical investment problem which is very common.
have handled a
~
the Investment
as
The
administering
authority under Section 14. In an
alternatives and recommendations.
For
in
Dealers, Inc.,
industry group
registered under the Maloney Act
is
about the Association
doubt
expressed
the wisdom of certain of the amend¬
out ments we have proposed; We are
rules hopeful that technical difficulties
peals for the Second Circuit gave
us in sustaining the Commission's
is just one
Here
'
greatly strengthened by
was
still
«
far
so
were
sion's
rules
at the
Congress. •Some securities industry groups
have
the boost which the Court of Ap¬
laws to your
these proposals
on
session, but we are confident
they will be given considera¬
with vigor by
sides, none broke
fought
bounds
of
request. Because of
of other Congres¬
tion in the nexl
about the same as the
before. Although all of the
contesting
advantage. It offers actual
case histories of how others have made tax savings and handled
practical business matters in the most profitable manner tax-wise.
There have been many changes in the Internal Revenue Act re¬
visions of 1954. Some of the changes are of major importance and
not to know tnem can cost you money. There have been changes,
for instance, in the tax status of American companies doing busi¬
ness in foreign countries
that will have have an impact on tneir
earnings. There are changes in about 80% of existing law which
were made in
1954. The authors are members of the New York
bar, as well as the Lasser Tax Institute. Where the Treasury has
not taken a definite stand they have evaluated the risk involved
and offered
be held
that
of Securities
which
sional business, no hearings could
contests under the new rules have
been
our
pressure
last
running
years
Instead, it gives you illustra¬
theoretical book.
the
1956.1
30,
We believe
they
have
worked
well.
The
number of contests this year is
Positive Approach
This is not a
on
the 1956 proxy season.
wanted to obtain a complete, up-to-date refer¬
ence book that you could turn to when you needed tax guidance?
I have just been reading such a book! Tne investor, business man,
corporation executive and especially the securities salesman, will
find the answers to most of his questions in this clearly written
and non-tecnnical book.
The title is "A Treasury of Tax Saving
Ideas." It is publisned by Business Reports Inc., 2 East Avenue,
Larchmont, N. Y. They are the same people who have issued the
favorably known Lasstr tax reports for many years.
tions of how to use the tax
Jan.
These
rules have been in effect during
Ideas''
A "Treasury of Tax Saving
4
fective
ciation
Currency, Senator J. William Ful-
for contests and adopted them ef¬
iHave you ever
community
support it, but the National Asso¬
he has a
He doesn't know whether or not it will
pay him to make a switch into another stock which seems to have
a better future.
After he pays his tax on the long-term gain he
will have less to invest in the new stock. How much must the new
stock out-perform the old one marketwise just to stay even? Let
us use the formula suggested in this case and see how the authors
long-term capital gain.
of this book would do it:
Use this formula:
one
gaged in
aspect in which we are
trouble
having
under
the
the
Se¬
.
"
-
((Cost
100
'--'.V..'
V
;
(profit—25%) ))
marxec
.
current
Example?: Stock costing 50 goes up to 58
((50 plus (8—25% ) ))—100 x 5fr=96.5%
v
.
plus
w
V.
The
stock
new
■
.
M
"
JO
■
must out-perform
V/:
■
1.03 times
the old by
(100
' '
;
-r 96.5)
.' VYVYii'
,
any
by 100 and divide by the market.
profit minus 25%)
determine
amount the
the
new
You can
the old
stock must out-perform
Gains and Losses
that
you
npeet every day, whether your client is the
proprietor of a business that may be operating one year in the
red, and who has
some
long-term stock profits and who might
find it disadvantageous to
has
business
should and
take his security profits in the year he
losses, or if he
is
$25,000 professional man who.
a
$5,000 of offsetting
convert $5,000 of losses and
can
gains into a $1,075 of profit after taxes.
v"
•';'!/ *
DC
Dc
*./'.'
■
;
•
'' '
-
V'
1-
''
this comprehensive,
Space does not permit a full review of
simply written book. It covers four major phases of tax planning:
Investments, Pay, Business and Family.
are
so
help
many new
ideas you
can use
Under investments there
to advantage and which will
to assist your customers in doing a better job with their
you
this
that
investments
portion
of the book will be invaluable to
I
divide
men.
Here's just one more example: Bonds selling flat,
carrying back interest—"on
have income.
bond.
payment of back interest you do not
a
The interest payment reduces your tax cost for the
Payment of back interest often will lift rather than depress
the price.
This offers
you
chance to sell out at
a
(Note the payment of back
a
capital gain.
interest only is tax free and
be
can
cashed at capital gain rates.)"
The
use
of
stock
options, deferred
pay,
pension and profit-*
sharing plans, investments with unusual tax protection
Timber, Oil), Real Estate, How to Use
Planned
Financing,
Gifts,
Family
(Citrus,
Loss Corporation, Tax
a
Trusts,
Estate
Planning—and
practically
on
every
you can
tax problem you wish to solve is covered in a
understand.
The book is
a
layman's encyclopedia
amendments
Nothing
and
you
do in business today
properly executed unless
Don't
tax-wise.
then it may
handle
a
wait
until
you
be well accomplished
first kn®w where
after
you
have
made
you are
your
securities
man
your
this book has
a
going
moves—
be too late. Find out first what is the best
situation—then check with
investment
can
way
to
For
the
simple index, he
can
tax
keep it on his desk, in his file, or in his brief
experts.
case
without diffi¬
culty; and if he wishes to know the answer to most of his problems
and obtain some new,
helpful suggestions for his clients, all he has
to do is look in the table
in language he can
of contents—the
understand.
answers and
suggestions
Federal
which
would
ties
and in¬
proxy
provision of the Securi¬
Exchange
Act
these
to
securities
listed
until
diffi¬
of this complex and
cult subject could be made.
fundamental
The
,
un¬
further
study
se¬
have
the
basis
for
the
strengthened
our
enforcement- recommendations we have made
capabilities.
In the Commission in regard to this legislation is that
we
refer to these
as
"technical
the public investors' position in
amendments" because they would
the securities of the 1,200 com¬
not in any way change the basic
panies covered by the bill would
philosophy or general effect* of
inevitably be improved by adher¬
these statutes.
Rather, they are ence
by these companies to the
designed to strengthen the juris¬ financial
reporting
and
proxy
dictional
provisions of the sta¬ standards
the
of
tutes, to correct certain loopholes
of inadequacies, and to facilitate
criminal prosecutions
and other
these
sider
activities.
proposals to
of
effectiveness
the
to
forcement
work.
We
in
sored
a
bill3
in
We
con¬
be
vital
our
were
fied, indeed, that they
en¬
grati¬
were spon¬
the
House
of
Representatives by the Chairman
of the Interstate and Foreign
Commerce Committee, Represen¬
tative J. Percy Priest of Tennes¬
see.
I consider this to be of great
importance
the ultimate suc¬
cess
of
this legislation
because
the Interstate and Foreign Com¬
to
Committee of the House of
Representatives
the
has
traditionally
the Committee in which the
been
securities laws,
Securities
1934
which
mission
including
Exchange Act of
established
have
the
originated.
insider
of
But
Ex¬
transactions.
could not, on
we
the basis of
available
data
at
this
time, recommend the extension of
insider
the
short-swing ; trading
provisions
because
of
recovery
the
possibility
the
on
of
portion
a
that
markets
for
their
the
the
of
impact
securities
companies
might
adversely
affect
existing
trading markets and possibly the
issues
new
should
market
companies seek to raise
tal.
This
regard
we
such
new
of
as
capi¬
great
importance,
as
the
1,200
com¬
panies' assets aggregate approxi¬
$35 billion.
mately
"little
has
They
and
not
are
the
public
provisions
and
practices
marketability' of
their
I
curities.
corporate
and
se¬
NASD
and
NAM
Unfortunately,
within
the
the
there
securities
is
involved
of
the
1 Securities
Exchange
Act
6
3 H.
4 S.
v.
R.
May, 229 F. 2d 123.
11129.
3195.
Committee
S.
Senate,
Print,
of
the
Commission
split
a
industry
GPO
Securities
on
S.
not
the
the
or
shall
limited character
be
the
exempted
aggregate offering price of which
exceeds
$300,000.<
The prime mover of this legis¬
lation
is
Representative
Bennett of
sire
legal
John
the
protection
best
possible
in
investors
to
small issues under the Federal
curities
laws
which he
B.
Michigan, and his de¬
afford
to
can
is
se¬
something
for
only be commended
whether or not one agrees with
the particular legislation for which
he has so strenuously fought in
the
Congress. Representative Ben¬
nett's
first
bill,
introduced
on
April 21, 1955,7 would repeal the
exemptive provision entirely.
j.
SEC Opposes Rep. Bennett's Bill*
Hearings were held on this sub¬
ject by the Subcommittee on Com¬
and Finance, at which we
testified, off and on from July 20,
1955, through May 9, 1956.
We
opposed this bill repealing the
exemption although these hear¬
merce
ings
developed
factual
good
a
information
abuses
of
stocks
with
the
deal
about
public
which
we
in
of
the
penny
have
been
attempting to deal by strengthen¬
ing our filing requirements under
the exemptive regulations and by
stepping
tivities
up
in
our
our
enforcement
field
offices.
ac¬
We
opposed the repeal of the exemp¬
tion
the
on
that it would
ground
adversely
affect the raising of
capital by legitimate small busi¬
ness enterprises.
r '
~
On
Feb.
16,
1956,
tive
Bennett
bills
which
sons
associated
apply
with
another
to
per¬
offering
exemptive regulations
our
same
Representa¬
introduced
would
on
an
strict civil liabilities that
offering
an
tion.9
bill
and
2054
to
Exthe
the
ground
substance
Banking and Currency, U.
May
25,
1956
(Committee
No. 77908).
/
7H.
8 H.
on
R.
R.
registra¬
opposed
that
require
the
it
this
would
equiva-
5701.
9319.
9 Section
1933.
full
under
likewise
We
on
2054.
Report
chancre
with
"is
pertain to persons associated with
desirability of this legislation.
5 S.
Release
Act
public offering," provided
issue
no
in
5276.
the
securities
public interest
and for the protection of investors
by reason of the small, amount
the
Opposition to SEC
in
necessary
under
sorship
of
respect to such
great interest in their finan¬
a
cial
business"
Com¬
personally
deeply
appreciative
Representative Priest's spon¬
of
this
legislation.
A
counterpart bill 4 was introduced
in the Senate by the Chairman of
the Committee on Banking and
trading
limited
the
the
am
Securities
change Act and by the disclosure
for
2 SEC
are
the
of
laws
reporting,
recovery
originated elsewhere in Govern¬
ment. First, we, ourselves, brought
forward to the Congress proposed
curities
of
enactment
bill, but recommended deferral of
any action on the application of
the
insider
short-swing-trading
Partly this was of our own
making, and partly it was respon¬
sive
to
legislative
drives
that
Federal
this ever-changing, involved, and most important subject.
the
?" sider reporting provisions of the
years.
merce
manner
has
financial
In 1956, the Commission had its
busiest legislative season in many
-
enforcement
securities
public, and $2 million of as¬
sets,
Amendments
Enforcement
-
-
Simplified by illustrations the authors take you through case
histories
the
endorsed
percentage-wise and you can see the figures clearly. No guess¬
work, no fumbling in the dark. Don't you agree that this sort of
figuring will be helpful to your customers and to you?
Treatment of Capital
will
outstanding in the hands of
more
Exchange Commfethese current
and
likewise been discussed
developments into four categories by me in a number of talks before
—legislation, rule and form .re¬ different groups throughout the
visions, agency administration country,
Briefly,
our
report,
to the Banking and
and, last, the role of the Commis-' fufnished
sion in the capital markets,
i
Currency
Committee
in
May,
sion.
.
Here in this simple formula is a handy guide you can use on
long-term capital gain situation. Multiply the (cost plus the
.
developments at
curities
100
11
of
the
Securities
Act
of
Volume 184
Number 5566
*v
..
.
The Commercial and Financial Chronicle
(997)
lent of full registration for
issues
and
,
that
small
would
this
have
the indirect "effect of repealing the
exemption.,
-V
V
V'
/-■;
r
;; Hopes Klein Bill Will Pass
s
It
is
interesting com¬
this bill that it seeks
mentary on
to impose on
ing circulars
exemption
imposed
to
using offer¬
a
statutory
registration far
from
•.
drastic civil liability than is
more
on
with
persons
summary
respect
prospectusesj; which
_
>
v v
In
the
proposed
summary
prospectus
rule, which I will also discuss. The
ties
Act
thG
to
Securi¬
specifically exempt the
prospectus from the full
summary
statutory
-registration
liabilities
in
order
statement
to
encourage
and
Commission
been
to
form
has
made.
detail
our
amendments
,
,
and
Foreign,
although
it
bilHQtand^
passed
was
oil In¬
Commerce
^avbrably^ifepojrted
I
few
current
the
of
will not
minutes
Most
action
take
small
some
the
As
soon
completed
Bennett
and
to
of
its
Klein
in
over
enforcement
also
I
availability
believe
it
to
in
Congress.
capabilities.
the
effect
of
curtailing the
the
exemption.
of
.
These proposals should receive the
serious
attention
of
business
and
groups
the
bar.
«.
•
' X
.
Forward
forward
now
tak¬
by
the
possible
prospectuses.
circulated for
proposed
a
rule.17
we
1954,16
We
have
comment
prospectus
summary
This, is an objective which
long had in mind as we
have
believe
it
will
in
assist
the
dis¬
seminating to the investing pub¬
lic
generally information about
the business and finances of
panies
bringing
com¬
issues into
the market for primary distribu¬
tion. It has always been the basic
objective of the Securities Act
that
new
information
about
securities
being
considered to
we
the
in
out
Securities
1933 and
of
Act
has
was
through¬
the
longest and most
distinguished careers in th£ House
consistently supported the Fed¬
one
eral securities laws and
the work,
of
Exchange
the
Securities
and
Commission in aid of the invest¬
ing public.
It
is
;
.
.
;
also
interesting xo note
that the only change made by the
Congress in these amendments as
they went through the legislative
process in 1954 was to reject, on
motion of Representative John B.
Bennett of Michigan, a proposed
increase in the exemptive amount
from $300,000 to $500,000, a pro¬
posal supported by the Commis¬
sion and which
actually passed'
the Senate in the interest of facil¬
the years was
over
restricted, be¬
the statutory prohibition
pre-effective offers and
of
cause
against
because of the full
statutory pro¬
requirements, until 1954
spectus
when the statute
amended to
was
give the Commission
flexi¬
more
bility for rule making in this
in connection with the
use
of summary prospectuses, and
But
the
opportunity their
should
use
pro¬
vide to disseminate to the public
information about new issues, we
also
ask you'to consider the
re-^
sponsibilities of industry, invest¬
bankers
and
that this
new
ment
sure
area.
These 1954 amendments provided,
wider
and
more
the
bar
to
in¬
instrument for
effective
,
com¬
munication with the buying public
is not used improperly or in any
registration
simplifications,
form
which
of
some
are
still
pending^
revision of a regis¬
formed en¬
terprises in extractive indus¬
tries. 19 This is particularly per¬
particularly
a
tration form for newly
,
-
.
for the Klein
bill, but
its enactment would
we believe
be clearly in
the public interest and
it will be sponsored in
Congress.
hope that
the
next
be
said,
Laws to Atomic
in
fact
be
share which
a
merchandised
not
Various
rities of that kind.
been
proposals
Public
Utility
Act of
193512
but
other
to
amend
Holding
in
the
Company
connection with
exempting groups combining for
the development of nuclear reac¬
tor s from
possible requirements
under
the Holding Company Act
failed, but, responsive to the Com¬
mittees of the Congress that
sidered
con¬
this
legislation, the Com¬
using
its
rule-making
mission
under the Holding Com¬
pany Act on July 13, 1956, adopted
powers
a
revision
U-712
sult
that
for
profit
the
of
its
accomplishes
we
this
have
stage.
made
a
We
be¬
significant
of
pose
the
by
is
to
The true pur¬
the exemption provided
Congress for small issues
facilitate
business
the capital forma¬
for legitimate small
enterprises.
It
seems
clear that
too
tion
process
stock
issues
abuse
the
of
many
of the penny
have
reflected
exemptive
rules
an
in
the sale of securities for purposes
not mnsicfAnf with the basic Con¬
gressional intent.
The
Commission
larly
interested
dent's
Cabinet
particu¬
was
that
the
Presi¬
Committee
on
Small
Business, in a progress re¬
to the President of Aug. 9,
port
development
1956, recommended that the Con¬
of atomic energy for peaceful
pur¬
empted groups developing hydro¬
raise the exemption from
$300,000 to $500,000 but added the
significant comment: "In order to
prevent the proposed change from
reducing protection to investors,
electric
the
contribution
to
the
by this revision of
poses
our
rules
under the Holding Company Act.
Legislation which would have ex¬
Holding
we
in
generating facilities from
Company Act standards
opposed and it
the
was
not pressed
has,
of
course,
been
Committees
and
indi¬
vidual
Senators and Representa¬
tives, particularly in the fields of
anti-monopoly, pension and felfare funds, freedom of informa¬
tion, government operations and
manpower
10 H.
Sess.
R.
utilization.
In truth,
as
Rep. No. 2513, 84th Cong., 2d
(1956).
11 H.
R.
should
privilege
to
businesses and should
issuers
of
limit
11308.
12 S.
2643; H. R. 9743; Sen. Rep. No.
2287, 84th Cong., 2d Sess. (1956); H. R.
Rep.
No.
2694,
84th
Cong.,
2d
Sess.
withhold it
so-called
'penny
Implementing our long standing
recognition of the great impor¬
tance
to
small
to
business
of
access
the
larly
capital markets, particu¬
for equity money, not
burdened
by unnecesary govern¬
mental
restrictions, on Aug. 16,
1956, The Commission established
in
our
Finance
Division
in
of
Corporation
Washington
a
new
Utility Holding Company Act
13221.
tion to make his
investment
own
decisions, not to protect him
against making his own decisions
or
to have
a
Federal agency make
his decisions for him.
securities laws do
Federal
not—and I
hope never will— give
to pass on
the Commission power
the merits of securities
or
forbid
securities of specidative duality to
are
I stress this because there
who
some
think
the Federal
should have such power,
including the very able Attorney
General of New York, Jacob Jav¬
agency
its, who is in charge of administer¬
ing New York's anti-fraud law,
who
so
testified
Subcommittee
the
before the House
in
the
the
in
abuses
sion
also
context
offerings
of
of
penny stocks.
In passing
I think it is inter¬
esting to note that these 1954
amendments,
unanimously
have
performance,
cap¬
ital
gains distribution, and asset
vplu,e xeUectivj^ unrealized appre¬
ciation
depreciation.
or
Statement
of
Aece'eratinn
Policy
Another proposal in which the
investment
banking
community
and
the bar should
which
be
interested,
have' presently pending
we
for public comment, is our State¬
ment
of
Acceleration
Policy 2»
with respect to the time at which
registration
a
statement
will bet
made effective by the Commission
under Section 8(a) of the Secu¬
rities Act.
sion
A number of Commis¬
practices
with
regard
to
withholding acceleration have
de¬
veloped
validity
the years, the legal
over
have even gone so far as to sug¬
gest that the statute be amended
to
take away from the Commis¬
sion the power to deny accelera¬
tion in certain circumstances. ,
We have felt that administrative
•
practices
which
have
developed
the years should be made
known to the public and subjected
over
to
public scrutiny.
We have
put
out this Statement of Acceleration
Policy
merit of
revi¬
State-
Policy with respect to in¬
resulted
This
literature.29
sales
vestment
has
a
part from indus¬
in
try dissatisfaction with the State¬
ment
of
adopted by the
cooperation with
Policy
in
Commission
of Secu¬
the National Association
rities Dealers in
in
the
that
tionship
the
anti-fraud
the
of
re-examined
be
its
of
standpoint
to
to
come
Statement
the
should
the
from
has
study
conclusion
and
and revised
1950
but more important be¬
Commissiojf after very
1955,
cause
rela¬
basic
disclosure
principles of the
Securities Act. A number of meet¬
ings and conferences with indus¬
try
committees
during the past
did
year
arid
not
produce agreement
the Commission
between
either
representatives
industry
or
agreement among various indus¬
spokesmen themselves.
Ac¬
cordingly having in mind the great
try
public interest in investment com¬
pany
sales literature and sales
practices, the Commission deter¬
mined to make this a matter of
public participation
out
put
proposed
a
and we have
Statement of
unsound.
are
'
;
In the interest of fair
;
.
disclosure,
I should mention to you that there
several
are
policies regarding
celeration
which
have
ac¬
been
de¬
veloped in the last year to meet
administrative
problems.
These
pertain to our unwillingness to
grant acceleration where during
the^ pre-filing or post-filing but
pre-effective period there is evi¬
dence
of "gun jumping," that is,
pre-effective sales which are il¬
legal. Also, we have been with¬
holding acceleration where one
or
pending
Commission's
the
of
Policy
Javits
The
We
intensive
Disagrees With Attorney General
of
more
not
the
the
meet
underwriters
test
does
of financial
re¬
sponsibility required under the
Exchange Act, and, most impor¬
tant,
have
we
been
withholding
the
acceleration where apart from
processing
of
statement
itself
making
issuer
legal
registration
have
we
investigation
an
underwriter
the
or
the
been
-
of
the
for il¬
fraudulent activities. We
have been acting in this area case
by case and believing, as we have
done so, that we are fulfilling the
over-all
objectives
of
investor
protection expressed in the Secu¬
or
rities Act.
'
<
Surveillance
.
By Finance Division
Passing from rule and form re¬
vision
to
administration
of
the
agency, I will call your attention,
briefly to the conditions that have
prevailed.
Under the Securities
Act, our Division of Corporation
Finance in
Washington has ex¬
amined the largest number of reg¬
istration statements,
almost 1,000,
covering the largest dollar amount
of new issues of corporate secu¬
rities—$13.1
billion
in
the
fiscal
ended June 30, 1956—of any
ade of the 1940's was 1946 with
year
750
registration
statements
for
ing and Currency Committee, and
period of the Commission's his¬
The record year in the deea
hearing. We seek the views of
$7.4
billion, and the average was
all members of the public who can;
about
450
filings covering
$3.8
contribute on this subject.
billion a year. Also, our Division
One of the cardinal principles
of Corporation Finance has ex¬
of.the Statement of Policy with
amined
Senator Prescott Bush of Connec¬
regard
adopted by the 83d Congress, were
sponsored in the Senate by Sena¬
Capehart of Indiana,
tor Homer E.
who
was
ticut,
Chairman
who
was
Subcommittee
of the
Bank¬
Chairman of the
on
Securities, at
a
time when Ralph H. Demmler was
Chairman of the
Commission, and
the House of
Representatives under the watch¬
ful eye of Representative Charles
they
went through
A. Wolverton of New
was
then
be responsible for supervising and
mittee.
was
a
Chairman
Jeirsey, who
of
the
Inter¬
Foreign Commerce Com¬
Representative Wolverton
member of that Committee
L.
577, 83d
14 Securities
Act
Release
3663.
17 Securities
Act
15
Act
Release
3664.
18 Securities
Act
Securities
Act
protect, but the protec¬
tion sought to be afforded, absent
fraud in the offering, is to put
the investor in an informed posi¬
16 P.
13 Public
Securities
the
that
state and
coordinating the examination by
the staff, both in Washington and
buy the
It is the public
not.
or
to
to
Branch of Small Issues which will
(1956).
Release
the
seasoned
stock.'"
a
great deal of other work for Con¬
gressional
Commission
from
Congress.
There
gress
exemption
investor
be sold.
Small Issue Branch Established
re¬
developing reactors in
experimental
lieve
Rule
organized not for
groups
and
go-called
moters
whether
decision
seeks
Policy
issues; on which to base
new
securities
legisla¬
tion, which I will mention briefly.
has
,
about
it may be an
use of the offering circular
by brokers, dealers and pro¬
using the telephone to lure
unsophisticated people into secu¬
There
business and financial information
his
when, typically,
issue of three million
by the
'
Reactors
-
to be of
or
limited character
will
-
the statute requires? to
small amount
a
shares at ten cents
\
Limit Utility
as
involve
company
namely, investment income,
particularly expecting
way
employed to discredit the comments from the bar, but we
standards and practices of the se-^ are not dedicated to adopting as
curities industry in which I be¬ Commission policy any of the pol¬
lieve the public in general has icies which have been in effect
in the past if we find in our con¬
great confidence.
sideration of the subject that
any
We
a
number
of
have made
stocks is relatively more, drastic lic was concerned and were bur¬
lengths of the Bennett Bill
tinent
' •*
and volatile than the market ac¬ densome to business.
because^t would fit in with
•
applies liability .virtually
any
further Jp'tirtailment of the
of a fiduciary nature to all per¬ tion of securities having a higher
These 1954 amendments in my
availability
of the "$300,000 exsons
associated with an offering' tinit value. The penny stock is not opinion represent the. fimsL sig-.
an investment
nificant step forward taken since emptidn. The form is designed to^
whether
medium,
and
in
our
having
knowledge
or
be
easily understood and com¬
being responsible for misstate¬ proposed revisions, which are now the Securities Act was enacted in
out for comment* we are posing 1933 in pursuance of the original pleted by persons registering such
ments, omissions or misrepresen¬
issues..
'-v
tation or fraud, or not. Only three the question whether it is possible basic
Congressional
purpose
of
members of the Committee voted, that the offering of an issue xan providing the public investor with
Re-Examining Statement of
to the
which
ment
of some of; which
itating the financing of legitimate
has
small
business
enterprises, par¬ been challenged by members of
ticularly - those a seeking
equity this Section of the American Bary
S o mb
individuals /.
capital.
,'c,
*\."Vy>. •• Association.
offered be made available
broadly as possible to the pub¬
'.
lic in advance of sale, but this
They are subject to Commission
rules, for
made in recognition of the serious
be the objectives of this legisla¬
pre-effective offers (but not sales)
abuses of the investing public—
tion without its drawbacks, Rep¬
by means of expanded newspaper
the fraud, the high pressure sell¬
advertisements-—the old fashioned
resentative
Arthur
G.
Klien
of
ing, and the uncontrollable long tombstone now is
New York on May 17, 1956, intro¬
considerably
distance
telephone
sales
tech¬ more informative than it used to
duced a bill,ii
which we sup¬
niques, particularly in penny be 15—and by summary
prospec¬
ported; which would have en¬
stocks, that have been inflicted on tuses filed as part of the
regis¬
larged, the civil liabilities of per-;
the American public
by brokers, tration
statement.
The
amend¬
sons responsible for misstatements
dealers and promoters taking ad¬ ments also eliminated certain
or omissions of material
facts, or
vantage of our exemptive regur other
complexities and restric¬
for misrepresentation or fraud, in
lations.
tions which served no useful pur¬
connection with, exempt offerings,
The
market
action
of
but which would not have gone
penny pose so far as the investing pub¬
To meet what
when
passed
as
We
promulgated further proposed
which, if adopted, will
session,
every reason
will- be introduced!
of¬
revisions15
have
have
and
fering circulars and to strengthen
our
recently
as
Congressional session,
letters of notification
Step
step
made
was
summary
and
Bills pertaining to Section
3(b) of
the Securities Act and before the
close of the
1
>
which first provided for the use of
time
Interstate
on
great
.
the statutory amendments of
want
on
issues.
Commerce
on
I
Significant
Another
•
-
,
ing
proposals, first in the
Committee
Foreign
the1 last days of the Congressional
the next
"
extremely
these because
a
field
for
curities being offered:
terstate
offices, of filings for
offerings not exceeding
$300,000 in amount.
■
making,
been
the field
exempt
which the Commission is
the use of summary prospectuses We adopted revisions14 of our ex¬
in the broad dissemination to in¬ emptive regulatibns designed to
vestors of facts pertaining to se¬ clarify the disclosure requirements
|"■{. However^ the'Committee
in
active and'a large number of form
revisions and simplifications have
registered
under
Regulations
- -
rule
spend
,1954
agency
considerable por-'
our
Revisions of Exemptive
_
would be used in the sale of fully
securities
independent
a very
time> rand properly so,
assisting the Congress. This is a
most important phase of our work.
persons
under
spend
we
>
rather
a
bipartisan
a
tion of
25
-.s..
„
Cong., 2d Sess.
Release
Release
3674.
3519.
Policy for comment and scheduled
proxy
investment
to
company
is that investment
sales literature
income, securities profits, and the
value of shares should net
asset
be
terms
of
rate
a
the
purpose
of
result
in
over-all
an
yield
percentage
of
return
on
the
or
a
invest¬
revision,
seek to implement this prin¬
ment.
we
for
combined
portraying
In
the
proposed
requiring that charts or
tables shall show separately the
ciple by
three elements involved in invest19 Form
S-3,
Securities
tory.
Act
soliciting material
covering more than 2,000 proxy
solicitations, a record.
Also, the
Division of
Corporation Finance
has
had
supervisory policy mak¬
ing authority in the field of small
issues, in fiscal 1956 numbering
about 1,450 for about $273 million
Of securities being offered to the
public under our exemptive reg¬
ulations.
The
Division
of
Trading
thority over an increasingly large
Continued
Release
on page
3668.
20 Securities
Act
Release
3669.
and
Exchanges has had regulatory au¬
21
Securities
Act
Release
3672.
26
*
The Commercial and Financial Chronicle
26
Thursday, September 6,1956
...
(998)
Role in Capital
Continued from page
25
never
our
registered brokerThe figure is now up to
of
dealers.
approximately 4,600. Three years
ago it was about 4,100. Also, the
market surveillance function ^of
the Division has had to cope with
the most active trading markets,
both on exchanges and over-thecounter, of many years. For ex¬
ample, in
1955 the number of
shares traded on the New York
Stock Exchange was about 1.2 bil¬
lion and their dollar value about
the Commission was
1942
1955.
Reductions
1800
over
in
700
reduced from
to just under
justified
in
learned more
were
ing
effectively and effi¬
of
.Trading and Exchanges is
great importance in the total im¬
pact of the Commission's work on
the securities markets during the
present period of activity on the
exchanges and the over-thecounter markets.
It is here that
the minute-to-minute trading re¬
exchange
stock
the
on
watched and the daily
sheets read to detect
unusual and unexplained price
movements so that anything that
quotation
market
(98.6%
and
about the issu¬
conditions
"Iron
to
dramatic event,
the decline in the Bellanca
some
first
the
time
we
have
as
stock,
recent
the
or
in
surge
investigations
in
considerable
a
number of stocks.
In addition to
uncovering - cases
of
fraud
tion.
Commission
work
has
deterrent effect
be
a
the
by
would-
on
yiolators. The criminal penal¬
ties for fraud and for manipulation
of securities prices are severe. The
Enforcement Branch of the Divi¬
sion
of
and
Trading
Exchanges
has had supervisory responsibility
for
large increase in
broker-dealer
inspections, secu¬
rities investigations and fraud and
market manipulation work.
a
very
Commission,
:
One aid
we
these
have had in the past
creased
from
added $500 for the Chair¬
an
$15,000
our
free
The
.
,
And
carryovers
the-turn
of
a
tough situa¬
•
.
^
,
into first quarter will tighten the
is critical.
mar¬
"**
-'
.
foresighted
r
One producer went into the
with a 90-day carryover on this
will be unable to take any new business
And
product. This means he
between now and the end
,
.
who had ordered plates to
be rolled on sheet mills at a time when sheets were plentiful now
find that chances of getting delivery are shm. The pickup in sheet
demand is taking up the slack on sheet mills.
^
to¬
some
consumers
Roger M. Blough, Chairman United States Steel Corporation,
on a Labor Day night broadcast, that
the building industry faces a "very tight supply of steel" but that
i
is
enter¬
reported to have! stated
"there
is
plpenty
of steel for automobiles," asserting
"I
do
not
believe there will be any shortage of autos because cf the recent
steel strike."
- ■
; *
:
.
The
An
underwriting
Straus, Blosser
headed
McDowell
Steel
and
Institute
announced
that
the
is based on annual
capacity of 128,363,090 tons
For the-like week
common
stock of General Merchandise
95.8% o£ capacity and 2,359,000 tons (revised) a week ago.
industry's ingot production rate for the weeks in 1856
The
yesterday (Sept. 5) offered to the
public 180,000 shares of
Iron
96.5% of capacity for the week beginning Aug. 27, 1956, equiva¬
lent to 2,376,000 tons of ingot and steel for castings as compared
with
group
&
American
,
operating rate of steel companies having 96.1% of the sieelmaking
capacity for the entire industry was scheduled at an average of
Blosser & McDowell
duction
Co.,
415,000 tons.
a
A
as
of Jam 1, 1956.
month ago the rate was 16.9% and .pro¬
year
placed at 2,255,000 tons
ago
the actual
weekly
production
in the work of
The operating rate is not
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based on annual capacity of
tered holding
125,828,310 tons
was
priced at $11.25 per share.
no diminution
Net proceeds from the stock
having quasi-legislative and quasisupervising regis¬
sale will be used to pay outstand¬
judicial powers with salaries of
companies and in¬
members of the Congress and the ing bank loans and to provide
vestment companies, all of which
The
Federal District Judges which has additional working capital.
have been increasingly active and
with; headquarters at
been in effect during 18 of the 22 company,
expanding.
'•
v,;.
Milwaukee, Wis., is engaged in
years of .the Commission's history,
Our nine field offices where
the wholesale catalog mail order
and
we
so
advised
the
Senate
the exemptive regulation filings
business.
It
serves
more
than
Post
Office
and
Civil
Service
for new offerings are made, where
small-town
and
rural
Committee in commenting at its 260,000
interpretations of law are given
request on the Executive Pay Bill. storekeepers in communities of
to
the
public, and where
the
under
25,000 population, princi¬
It seems to me that the bar has a
broker-dealer inspections and in¬
pally in the middle west.
<
great responsibility in this field.
vestigative and anti-fraud work
Giving effects to the - current
are done, have been more active ;'
We were extremely gratified financing, capitalization will con¬
than
in
any
year
in memory. that our 1956 and 1957 budget es¬ sist of 540,000 shares of common
ulation has found
Their work has assumed tremen¬
timates
dous importance from the stand¬
the
point of
years, and our
cause
of
U.
the public
abuses
interest
incident
be¬
to
the
marketing of certain types of se¬
curities, such as penny stocks. In
addition to the perennial problem
of
were
approved in full in
President's Budgets for
stock, $2.50
par
selling
in
to
urn^a decrease of
outph|j^tates "Ward's."
by 539
and
w|cK'S car output dropped below that of the previous
lZ49^cars, while truck output increased the past week,
vehjcl£j£ In the corresponding week last year 85,851 cars
14,812
Last
Sales have increased from $4,106,313 in the 1952 fiscal year to
$23,794,002 in the 10 months ended
in the history of the Commission May 31, 1956. Earnings after taxes
was
in
the
exact
amount
re¬
totaled $705,371 in the 10-month
quested. We are particularly grat¬ period, or $1,30 per share on the,
ified by the interest and support 540,000 shares to be
outstanding.
certain parts of the United States,
our
enforcement offices are
and
engaging actively in programs to
cope with this problem.
Thomas of Texas, Chairman of the
House
Subcommittee, took the
time to visit one of our important
Staff Less Than Half That in 1942
field offices personally to observe
our enforcement
work, and Sena¬
Under
has
been
that
both
these
circumstances, it
gratifying to me
most
the
President
Congress have supported
forts to
of
reverse
successive
and
the
ef¬
our
the 15-year trend
reductions
in
the
staff of the Commission by grant¬
ing
us
increases
of personnel in
fiscal 1956 recently ended and in
fiscal 1957 just begun.
Many
peo¬
ple don't realize that the staff
of
tor
Carl
Hayden
of
week and
on
..
Robert
Charles
New
Appropriations, and Sena¬
K.
F.
York
Fagan, partner in
Henderson
& Sons,
City,
away
Illinois,
With McCormick & Co.
otir
appropriation requests and
importance of our work for
the investing public.
L.
94,
84th
LONG BEACH, Calif.—John H.
Pierce has become affiliated with
McCormick
Con1st Sess.
854, 84th
Cong., 2d
Sess.'
-
placed at 0 cars and 261
the
comparable 1955 week, 3,893
cars
and
trucifet.^;7 ,; /. •
^ife^tric
ai*$i$|
Output Lower in Past Week
of electric energy distributed by the electric light
and
powerjbktustry for the week ended Saturday, Sept. 1, 1950,
was
estimated^ at 11,565,000,000 kwh., according to the Edison
IrfetituVe./
v■
-,4
V.k:
This \§as/*aii increase of 225,000,000 kwh. above that of the
Electric
/
■
previous
increased 859,000,000 kwh., or 8.0% above,the
comparable *19551 week and 2,478,000,000 kwh. over the like week
in 1954.. ■: "::K
"Electrical.,World," a McGraw-Hill publication, estimates that
1,125,000,00 kwh. or 9.9% of the total electric utility output for
the week
Aug. 25 was used at Atomic Energy installations.
ExclutMng^A^C use, output for the week totaled 10,215,000,000
kwh., 2.67c^higlier than the same period last year, also adjusted
to exclude AEG^se. This compares to a 4.0% increase in over-ail
output of tne nation's utilities (11,340,000,000 kwh.), as reported
by Edison
(Special to The Financial Chronicle)
the
23 P.
was
,
passed
Aug. 27.
a member of that
Committee, have
deeply concerned themselves with
22 P. L.
a year ago.
Inprevious week Dominion plants built 96 cars and
truck4%a£)$for
1,124
'
were
.
Robert K. Fagan
Arizona,
tor Everett M. Dirksen of
44
|^8^2
Canadj^nt output last week
4 4
trucks.
369
;
19,183 trucks made
Uni|^cT+(States. This compared with 18,644 in the previous
The
Chairman of the Senate Commit¬
tee
|tfqcks were assembled. .
WjffieRthe agency reported there
,
Sprague Bauman, associ¬
ated with Auchincloss, Parker &
Redpath in New York City, passed
away suddenly Aug. 30.
of cars and trucks amounted
11,960 units below the preceding
by
in the
John S. Bauman
output for the latest week, according to "Ward's
Last
week
value.
John
1955.
Ctar-Output Declines Again in Latest Week |
78,661
week's
those
the House of Representatives and
the Senate. Representative Albert
of Jan. 1,
93.4%.
|t|p,prts," dipped again.
pasj Week's production total
The
.
phone! "boiler-room"
as
or
Automotive
1957 appropriation
by the Congress for the first time
illegal^distributions, mostly by
long
distance
telephone
from we have received from the
Inde¬
Canada, there has been a recent pendent Offices Subcommittees of
upsurge
in high-pressure
tele¬ the Appropriations Committees of
S.
Automc$4f§
..
.
■
■
despite some opinion to the con¬
will be striving to rebuild inventories
strike
man,
by
way.
the year
plate situation
of the year.
Offered by Straus,
which will undoubtedly be
of help in attracting and holding
qualified Commission members.
However, it should be noted that
this legislation does not maintain
Supervising Registered Companies
that parity of salaries of members
The Division of Corporate Reg¬
of
an
independent
Commission
•
The producers,
trying to make the best of
.
$20,000,
to
after
General Mrfse. Slock
by the Executive Pay Bill23 Com¬
missioners'
salaries. were - in¬
with
in
are
trary. After that, consumers
as a hedge against price increases
at mid-year,
prise system.
Also, in July of this year,
1955.22
markets
'
adds up to a tough fourth quarter for consumers and
all
producers.
ket
integrity of the capital
markets is vital to the'fchccess of
the 716% increase in the
statutory pay rates for the staff
which became effective in March,
'
*
„
wards the
year was
•
r
t
It
corpora¬
makes
,.
Meanwhile, hot-rolled bars and hot-rolled sheets have joined
plates, structurals, and pipe on the list of hard-to-get products.
Cold-rolled sheets, plentiful before the strike, already are on
priority lists, will grow tighter as auto producers move into the
market following the model changeover.
*.
laws, as admin¬
by the Securities and Ex¬
change
"
'v
The contribution which the
istered
'
career.
a
American
j
the
indication of how tight the market has become.
an
caught in the middle,
Federal securities
Need for Higher Pay
and
manipiation, this market surveil¬
lance
service
tions.
of
as
effort to wipe out heavy carryovers.
an
It's hardly likely that control advocates will get their
4
$7 and $8 billion annually,
securities
missionprofessionalstaff.Wehope >
ments developed, and we are run¬ mission
professional staff. We
ning as a matter of routine trad¬ hope that many of these young
make Government
ing quizzes and some full scale people will
beginning to make themselves felt.
much as two months from fourth quar¬
now
Such a step would inevitably
lepd to a "me, too" approach on the
part of other industries and compound present confusion.
But it s
schools
from the moment that the move¬
are
dropping
point where Washington is getting
feelers on the possibility of modified controls for the benefit of
so-called defense-supporting industries.
•
The confidence of the American
been
are
The crisis has reached
people are capable. Although the
To do this the Commis¬ major portion of this $60 billion
sion must continue to be ade¬
investment
component
of
the
quately staffed with professional Gross National Product is pro¬
people, lawyers, accountants, ana¬ vided from internal
sources, such
lysts, engineers, of fine capability, as
depreciation accruals and re¬
and the agency must be attractive
tained :earnings, nevertheless, a
as a place in which to work. The
very large amount of money, be¬
recent work load has imposed a
for
Age," national metalworking weekly.
losses
of the situation.
ousness
agency.
tween
Industry
Within the last few days, steel mills have been flooded with
orders from consumers who are just beginning to realize the seri¬
plied for capital purposes, that is
to say to provide plant facilities,
tools and working capital needed
by American industry if it is to
respond to the increased produc¬
tivity and the higher standard of
living
of
which
the American
real
Iron
ter allocations in
excess of $60 billion, of
this Gross National Product is ap¬
vesting public shall continue to be
effectively
discharged
by
this
"The
Producers
tion, in
Congress enacted in the securities
laws for the protection of the in¬
Age*' Fears Steel Demands Will Produce
post-Labor Day
Strike
breaking through the $400 billion
annual rate.
A considerable por¬
appropri¬
(98.9%
bulge in steel demand wall tighten the
market to the breaking point.
The pinch will affect all products,
including some that are now in relatively easy supply, according
Product
National
Gross
the
quarter
V
Crisis in
The
watched for evidence of
manipulation and fraud, has been
more
important to the American
economy. We see on all sides the
burgeoning of this economy. We
see
and 32 million in the final
con¬
stantly
sponsibilities, and as market con¬
ditions permitted, .but in the light
of present conditions in the secu¬
rities markets it seems to us that
a strengthening of the staff of the
Commission is called for in the
of capacity)
to
actively recruiting from the; law people in the basic integrity of the
and business schools and capital markets is an important
Northeast Airlines, have been un¬ are beginning to train and de¬ factor in their willingness to save
der scrutiny by our staff almost velop a new generation of Com- and to invest their savings in the
such
6
of capacity).
burden on our staff. It is must be
provided by investment
be immediately followed up. Con¬ particularly
important
as
the
capital raised in the capital mar¬
service'
length of the staff grows
trary to popular impression, many
kets
from
the
savings of the
stock movements that have later that there be replacements in the
American people.
become of great public
interest lower age groups, and this year
suggests manipulative activity can
because of
page
commerce
and providing
companies,
investors
ciently to handle its statutory re¬
public interest. Our 1957
interstate
basic information
Commission
the
as
public
sold
securities
in
in
traded
to be
$38 billion, almost double the fig¬
ures
of two or three years ago. back ud to a strength of 800 at the
The
market
surveillance
work end of the fiscal year and we
the
support of the
or¬
conducted by our New York Re¬ invite
gional office and by our Division ganized bar in our efforts to as¬
sure that the basic policies of tne
of
ported
from
been
function in assuring to
investors
ation is such that we expect
tickers is
Continued
capital markets. There has
a time, I believe when
in the
number
Markets
Finally, let me say a brief word
about the role of the Commission
and
curity Building.
i
Company,
'
...
Is*
Se¬
Car
^lpctpc Institute.
^>a4ings for Aug. 25 Week Declined 2.1%
Loadingm£; revenue freight for the week ended Aug. 25, 1956,
77Q,413nars, the Association of American Railroads an¬
nounced todayl; This was a decrease of 16,859 cars or 2.1% below
totaled
Volume 184
%
Number 5566
.
.
The Commercial and Financial Chronicle
.
(999)
27
the
corresponding week in 1955, but an increase of
93,715 cars
13.8% above the
corresponding week in 1954.
-;L6adings in the week ended Aug.'25 were 789 cars or-onetenth of 1% above
the preceding week.
Livestock loading
amounted to 10,163 cars, an increase of
2»377 cars above the
corresponding week in 1955, and an
of. 824 cars above
increase.^
the
preceding week this year. In the Western^,
Districts, loading of livestock for the week of
Aug. 25 totaled
8,091 cars, an increase of
2.172 cars above the same week a
year
ago, and an increase of
742 cars above the
preceding
week this
year.
Spot
or
\;
—
F°rest products
;
M36.caj-s above
week^Sgo.
.Ore
;
to
maintained
steady
a
firm
to
loan and predictions that the next
crop
substantial drop from the August forecast.
a
chase of
undertone
cotton
in
the
14
spot
markets
last
estimates
Hogle & Co. Sells
Cyprus Mines Shares
will
On Sept.
Reported pur-
week
totaled
Salt
86,300
the week ended Aug. 17
were 25,744 bales against 5,408 the week
before, bringing total entries for the season to
31,100 bales, com¬
pared with 4,600 bales a year earlier.
■**
.'V/
cars,
decrease
a
of
17,263 c
v..
below last
Prices of foodstuffs-in wholesale markets trended
year, and a decrease of 5,837 cars below last
generally
week.
Coke loading amounted
)\ downward this week and the Wholesale Food Price Index, comto. 11,226 cars, a decrease of
cars below a
1,104^ piled by Bun & Bradstreet, Inc. fell 5 cents to stand at
year ago, but an increase
$6.04 on
of 535 cars above the
pre- '
vious week this
Aug. 28, from $6.09 a week earlier. The current
year.
figure is the
lowest
since
;* All districts reported
July 17 when it stool at $6.01. It compares with
decreases compared with: the corre¬
;:$6L15 on the corresponding date a year
sponding week in 1955,
ago, or a drop of 1.8%.
except the" Pocahontas.
All reported
increases compared with
Higher;
in
wholesale cost this week were sugar, coffee,
the
beans,
corresponding week in 1954.
potatoes, raisins, currants, prunes, and steers. .."Lower in price
r
were
flour, r wheat,: corn, rye,' oats, barley, hams, bellies, lard,
Business Failures Up
Slightly
" cottonseed oil, cocoa,
peas, eggs, and lambs.
Commercial and industrial failures
The Dun & Bradstreet Wholesale Food Index
rose slightly to 237 from
215 in the
represents the
preceding week,, reported Dun &
sum total of the
Bradstreet, Inc. "This
price per pound of 31 raw foodstuffs and meats
increase lifted the toll above
the 215
in general use. It is not a
occurring in the comparable
cost-of-living index. Its chief function
week of last year and the 193 in
is: to show the
1954. Failures were
3% above the
general trvend of food prices at the wholesale level.
prewar level of 229 in the similar
week of 1939.
Failures with liabilities of
$5,000 or more climbed to 203 from
Wholesale Orders Up
174 a week
ago and 181 in the
An upsurge in reorders for
corresponding week of last year. A
Fall merchandise boosted the
decline, occurred among small
failures, those with liabilities under
total dollar volume of wholesale trade
this week; bookings were
$5r,000, where the level dipped to 34 from
41, but remained even
slightly higher than in the comparable week a year ago. Re¬
with tho comparable 1955
level. Liabilities in excess of
flecting the favorable consumer' response to promotional
$100,000,
were involved in 17 of the
sales,
week's failures as compared with 22
retailers were
particularly eager to round out their stocks of
in the previous week.
~
;
apparel
and
.
/
.
•
housewares.
Buyer
attendance
at the wholesale
Retailing and wholesaling accounted
centers was usually high.
entirely for the week's
increase;-failures 'among a retailers rose to 136 from.
106
and
Apparel buyers increased their reorders for Fall clothing this
arpongwholesalers to 23 from l9; The toll m
manufacturing dipped s i week. Winter coats, suits, and sportswear were among the bestto, 36 from 39, in
construction to 25 from 33, and in commercial
selling apparel for women, while the buyer interest in cocktail
service to 17 from 18. More retail
businesses failed than a year
dresses improved
noticeably. There were numerous fill-in orders
ago, but in all other lines mild declines from 1955
for children's back-to-school
prevailed.
specialties. In men's wear, jackets,
slacks, and sport shirts sold well. Sales of shoes remained
,
primarily
net per
share.
spread
shares
Responding enthusiastically to
their buying
this
seasonal
week.
promotions,
Retail
dollar
of a year ago in most
sections of the country.
tered mainly on Fall
apparel, • although there
sales of some household
sold well; inventories of
The
total
dollar
to exceed that
Interest still
was
cen¬
pick-up
a
retailers
ber.
Both new ; and used cars
continued to recede.
retail trade in the week ended
cars
volume of
this Wednesday was 1% to 5%
higher than a year ago, accord¬
ing to estimates by Dun &
Bradstreet, Inc.
Retailers reported a substantial
gain in sales of back-toschool apparel this week.- Volume in
children's clothing and shoes
was moderately higher than a
year ago. Women's suits and sports¬
wear
attracted favorable
attention, as did handbags and other
accessories.
Fur sales revived,
registering gains from a year
ago.
Men's apparel sold well in most
areas, with emphasis on
well above
was
a
haberdashery.
Although the sales of major household appliances were dis¬
appointing to many retailers, there were scattered
gains in volume
in home freezers, dish
washers, and garbage
niture sales remained
high,
disposal units.
Fur¬
principally because of increased
sumer
buying
sional tables,
Retail
dining
food
produce.
to
bedroom
United States, iron
mining in Peru, and oil ex¬
ploration and development in the
United States and Canada.
I Peler Morgan Offers
high
was
occa¬
i-
and steady this week. Con¬
foods in favor of frozen and
canned
spurn
meats, poultry, and dairy products, were
Volume in solft drinks and bakery products
increased.
Wholesale Commodity Price Level Down
Slightly
The
Daily Wholesale Commodity Price
Index, compiled by
Bradstreet, Jnc., leveled off week ending Aug. 29 and
mpy?d slightly lower toward the end of the
period tot close at
&
296.40
Aug. 28.
This compared with 296.78 a week
ago, and
with 275.68 on the
corresponding date last year.
Grain
markets developed considerable weakness and most
prices registered substantial declines for the week. Corn and
soy¬
on
^
beans
the
under
were
Midwest
Prospects
sharply
harvest
for
a
lower
of
pressure
of
record
and
these
general selling and liquidation
two
cereals
rapidly
as
approached.
breaking
soybean
crop
sent
.had. an
unsettling
influence
on
prices
.
other
grains.
Some selling in soybeans was also influenced
by weak¬
ness in vegetable
oil markets and slow export demand.
Corn
prices declined sharply although this year's crop will not be a
record and is likely to be smaller than that
harvested last year.
Some mill buying of wheat and expectations of increased
export
sales helped to bolster wheat prices at times.
Volume of trading
in grain and soybean futures on the
Chicago Board of Trade last
week fell to
a daily average of
43,800,000 bushels,
the previous week, and
57,300,000 a year ago.
meats
a
very
classes
unless
of
buyers indicated a continuance of
strong new incentives appeared.
limited
There
bookings
was
►
consumer
levels.
Cocoa
fluenced
prices trended downward this week, with selling in¬
by slow manufacturer demand and a weaker tone in
the London market.
moderate
decline
to
Warehouse stocks of
512,522
bags,
from
cocoa
421,424
At this time last year they were 255,526
bags.
quiet
and
prices
worked
lower,
showed
influenced
a
a
further
week
earlier.
Lard, demand
largely
by
was
further
weakness in vegetable oils.
Hog prices held fairly steady; mar¬
ket receipts were lighter than last year and the smallest for
any
week this year.
~
?
Mica
year's
brisk
goods
gray
pace.
with
There
purposes.
very
modest
of
were
sizable,
sometimes
\
ago.
>
running
,
r
,
from
.
8%
to
ahead
of
chased
lease
In
on
the
increase of 7%
about
on
of Monarch
assets
of
138
a
acres
99-year
of
land
option to purchase such property
an option to buy an adjoining
and
property.
,-;r*
a
M
Shearson, Hammill
Opens Rochester Office
ROCHESTER, N. Y.—Shearson,
& Co, members of the
New York Stock Exchange and
Hammill
reported.
For the four weeks ended Aug.
25, 1956, an increase of 7% was
For the period Jan. 1, 1956 to
Aug. 25, 1956, a gain of
4% was registered above that of 1955.
year.
the
consisting
in Hart County, Ga, as well as an
other
reported.
1956, registered
all
Corp,
Department stores sales on a country-wide basis as taken from
the Federal Reserve Board's index
of the week ended
Aug. 25,
1956, increased 8% above those of the like period last
year.
In
the preceding
week, Aug. 18, 1956, an increase of 5% was
last
:;*X;.,■.'
was organized
February, 1956 to explore for,
The
corporation in April, 1956, pur¬
requests for
print cloths and
15%
.■•
mine and process scrap mica.
sheetings. Contrasting with the sluggishness in
carpet wools, the
buying of wool fabrics used for men's weak
quickened and orders
year
the
use
in
scattered
sales
will
Mica & Minerals
renewed interest in canned
were
Minerals
proceeds for repayment of
outstanding loans, to exercise an
option to purchase property now
under lease, for construction of a
plant, and for general corporate
slpw this week, and ordering dropped
was
&
net
generally dull.
nounced
and
,
1956, an increase of
3% was recorded.
For the four weeks ended
Aug. 25, 1956, a
gain of 8% was recorded. For the
period Jap. 1, 1956 to Aug. 25,
1956, the index recorded a rise of 4% above that of the
corre¬
sponding period in 1955.
corn-
have
an¬
the
opening of an office
at Rochester, N. Y, in the Triangle
Building, corner of East Main St.
and East Avenue, Schuyler C.
Wells, Jr. is the Resident Man¬
Aug. 25,
above those of the like
period
leading
stock
exchanges,
mod i t y
preceding week, Aug. 18,
ager.
;
•
'Mr.
Wells
Rochester
leader.
The
is
prominent
a
business
Prior to
and
civic
joining Shearson,
sharp increase in August was attributed to the fact that
department store sales were record
breaking for an August
for the reason that the
city enjoyed favorable weather
conditions throughout
August causing the dollar volume to exceed
the comparative 1955
period.
Hammill he had been Vice-Presi¬
the
dent and Trust Officer of the Se¬
month
curity Trust Company of Roches¬
ter. He was a director of Graflex,
A year ago,
August, 1955, weather was a deterrent to business.
The month was the
hottest August on record and was threatened
by hurricanes "Connie" and "Diane"
resulting in the wettest
such month on record.
boards
Inc.
and
is
at
present on the
Trimble, Inc. and Garlock Packing Company.
of
Mac Adam With First Mich.
(Special to The Financial Chkonicle)
With L. A. Caunter
(Special to The Financial Chronicle)
CLEVELAND, Ohio
G.
Nowacek
with
L.
A.
is
—
now
Caunter
&
connected
Co., Park
MIAMI,
is
Bache
&
the First of
Michigan Corporation,
135
La
South
was
been
Green,
added
Erb
&
to
Co.,
the
Joins Columbia Sees
(Special to The Financial Chronicle)
the
Inc.,
N. B. C. Building, members of the
Midwest Stock Exchange.
&
Co.
Prior
and
thereto
Northern
Street.
He
Baxter, Wil¬
White-Phillips
he
Trust
was
with
Company.
With Bache & Co.
MIAMI, Fla.—Sydney M. Sher¬
has
man
lumbia
joined
the
staff
of
of
GREENSBORO, N.
Co¬
Securities
Company, Inc.,
Florida, 3839 Biscayne Boule¬
vard.
G.
Merritt
has
C. —Leslie
become
with Bache & Co., 108
ket Street.
affiliated
West Mar¬
Eastern Sees. Adds
Joins Pan Am Sees.
Joins Bache Staff
(Special to The Financial Chsonicee)
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
DETROIT, Mich. — Edward J.
Harrington has become connected
with Bache & Co., Penobscot Bldg.
Salle
with
formerly
liams
Co..
CLEVELAND, Ohio^-Victor G.
of
with
Solomon
Co., 96 Northeast Second Avenue.
Green, Erb Adds
staff
Fla.—Samuel
affiliated
now
(Special to The Financial Chronicle)
has
Adam has become associated with
(Special to The Financial Chronicle)
Charles
Building.
Glaser
CHICAGO, 111.—Robert A. Mac-
With Bache & Co.
some
buying of semolina and durum blends earlv in the week on price
concessions by mills.
The green coffee market was more active
wi,th prices firmer, reflecting the possibility of a waterfront tieup after Sept. 30, and the general upward adjustment of coffee
prices at the wholesale and
cotton
*
bookings of all types of bakers' flours remained
low ebb and the lack of interest shown among all
some
Morgan & Co, of New
City, are offering publicly
570,000 shares of common stock
(par 10 cents) of The Mica &
Minerals Corp. of America at $1
per share.
vegetables; while activity
was
Trading in textiles
below last
from 52,500,000
Domestic
at
Peter
York
According to the Federal Reserve Board's index,
department
(store sales in New York
City for the weekly period ended
in Latest Week
Dun
Mica & Minerals Slock
with particular buying
emphasis on canned vegetables.
Orders for dairy products and
poulffy were sustained at a high
level.
Trading in dried fruits, flour and spices was limited.
There were moderate orders for fresh
in fresh
tim¬
and
world-wide:
ore
con¬
furniture.U Lamps,
Fresh
heavily purchased.
M
and
kitchenwares sold well.
volume
continued
sumers
fresh
of
and
was
oil
are
northwestern
goods,
,
suits and
There
year ago.
Operations
copper mining on
the
of Cyprus and in Arizona,
integrated timber division in
an
high.
Wholesale food volume expanded
moderately this week and
,'
.
•
including
an
furnishings.
new
of
Mines
Island
Some
increased
distribution
Cyprus
industries—mining,
;
their orders for television sets,
anticipating
upsurge in consumer interest with the termination of the
vaca¬
tion season. Volume in hardware and paints
remained
in
public
is
operation
and
development
of
properties in the natural resource
high;
slight gains from the year-ago lew.l are expected to be maintained
through the first half of 1957.
Dining and bedroom furniture were reordered more fre¬
quently than other kinds of furniture this week, while, the
buying
of major household
appliances dropped off somewhat. >
was
$67
The company is engaged in the
,
consum¬
volume
at
r\
203,125 shares.
_
increased
throughout
offices
Corp.
controlled by the Mudd
family of California, In addition,
Newmount
Mining
Corp.owns
-
ers
branch
in
which
,
moderately above last week's level and continued
distributed
17
This represented the first wide¬
•
Retail Sales Rise
5, J. A. Hogle & Co,
City, Utah, announced
Hogle's
-
.
Lake
completion of their secondary of¬
fering of 35,000 shares of Cyprus
Mines Corp. common stock
(par
$4). The non-registered issue was
Wholesale Food Price Index Lowest in Six Weeks
73,125
cars
J. A.
bales, compared with 165,700 in the previous week, and 129,900
in the
corresponding week a year ago. CCC loan entries during
'
amounted
prices
the
show
loadings totaled 49,426
-
loading
into
*■
cars, an increase of
year ago, and an increase of 305 cars
above a
a
cotton
f influenced by steady trade price-fixing and comparatively small
hedges, and reports of an increasing holding tendency among
^.growers. Other bullish factors included the expanding movement
-
N.
C.—Lea-
been
added to
JACKSONVILLE,
MIAMI, Fla.—Ronald B. Stucker
is
with
561
Pan American
Securities,
Northeast 79th Street.
dus
the
R.
Armes
staff
of
has
Eastern
Corporation, 331
Securities
Marine Blvd.
The Commercial and
Financial Chronicle
...
Thursday, September 6,1956
(1000)
28
★ INDICATES
Securities Now in
Inc., Grand Junction,
Abundant Uranium,
Feb. 23
(letter of notification) 3,000,000 shares of com¬
(par one cent). Price—10 cents per share.
mining
Proceeds—For
Office—319 Uranium
expenses.
M.
Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.
; , ^
>
(9/18)7
Aug. 29 filed 400,000 shares of common stock (par $10).
Price—To be supplied by amendment.
Proceeds—For
part payment for the assets of Newport Steel Corp. and
for working capital.
Underwriters—Blyth & Co., Inc.
Riverdale, III.
Acme Steel Co.,
Merrill
and
Fierce, Fenner
Lynch,
& Beane, both or
York.
New
★ Allegheny
(9/20)
LudKum Steel Corp., Pittsburgh,
7 y-;; • 7,,7
Pa.
by
■.*
Co., New York.
•
-
(9/12)
★ Aluminum Co. of America
-
150,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — To
Arthur V. Davis, Chairman of the Board, who presently
owns
1,336,824 shares. Underwriter—The First Boston
Aug. 30 filed
7,7:'
Corp., New York.
★ American
Insurance
Newark,
Co.,
J.
N.
Aug. 31 filed 1,750,000 shares of capital stock (par $2.50)
to be offered in exchange for outstanding 1,750,000 shares
Of capital stock of American AutomobileJfosurance Co.
of St.
Louis, Mo.,
This offer
share-for-share basis7
on a
is conditioned upon deposit of at least 1,400,000 shares of
Automobile stock.
Kidder, Peabody & Co. will head
group of dealers to solicit tenders.
,
,
American Insurors' Development Co.
10 filed 400,000
Feb.
Price
—
shares of
$2.50 per share.
business.
Office
stock
common
Proceeds
—
(par $1).
To expand service
Birmingham, Ala.
Underwriter
Odess, Martin & Herzberg, Inc., Birmingham. Ala.
American
—
Investors
Nashville,
Corp.,
July 13 filed 4,962,500 shares of
—
Tenn.
stock (par $1),
common
of which 962,500 share are to be reserved for the exercise
of options by company employees and 4,000,000 shares
are to be offered publicly.
Price—$2 per share. Proceeds
—To purchase all of the common stock of American In¬
vestment
Life
Insurance
Tennessee law.
Co., to be
Underwriter—None,
★ American Mutual
Fund,
Inc.,
Los
organized/under
Angeles,
Calif.
Aug. 31 filed (by amendment) 750,000 additional shares
of capital stock (par $1), Price—At market. Proceeds—
For
investment.
-vr
•
"-;v
77;v/-'-V'77.
^
★ American Pad & Paper Co., Holyoke, Mass.
Aug. 20
(letter of notification) 3,000 shares of common
stock (par $20).
Price—$50 per share. Proceeds—For
working capital.
Underwriter—Estabrook & Co., Bos¬
ton, Mass.
'
★
American
Seal-Kap Corp. of Delaware
Aug. 7 filed 160,000 shares of
be
offered
for sale
"to
a
preferred share held, while the common shares
being offered for subscription by common stock¬
one share for each 10 shares held
for each
10; rights to expire on Sept. 25.
Price—
debentures, 100 % per $100 principal amount; for
stock, $12.50 per share. Proceeds—To repay bank loans.
Underwriter—None. Statement effective July 10.
of July
Arizona Public Finance Co., Phoenix, Ariz*
Sept. 16 filed 78,006,081 share# of common stock to be
"offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
udesman
(9/25)
Sept. 5 filed 200,000 shares of class A common stock (par
$1.25). Price—To be supplied by amendment. Proceeds
—To two selling stockholders. Underwriter—Kuhn, Loeb
&
1, 1986 (convertible until July -1, 1964) and
63,614 shares of common stock (par $1). The debentures
are
being offered for subscription by preferred stock¬
holders at the rate of $10 principal amount of debentures
due July
Cement Co.
Portland
common
small
stock
number of
(par $2) to
who
persons
will
acquire the same for investment only." Price—To
be supplied by amendment. Proceeds—To retire demand
notes and for general
corporate purposes.. Office—Long
Island City, L. I., N. Y. Underwriter—None.
Statement
effective Aug. 29.
Angeles, Calif.
of 5% subordinated debentures
15 filed $4,099,300
For
Proceeds—To repay out¬
amendment.
Co.; both of New York.
★ Allentown
June
as
standing obligations and for expansion program. Under¬
writers—The First Boston Corp. and Smith, Barney &
7 7
of the insurance
Associated
firm.
Underwriter—N one.
all
offices
expenses.
Office — 4 Liberty Square,
Underwriter—Kimball & Co., New York.
mining
Mass.
Bridgford Packing Co., Anaheim,
Calif.
Aug. 13 (letter of notification) 222,222 shares of common
stock (par $1).
Price—$1.35 per share. Proceeds—To
obligations/ purchase equipment, etc. Office—1308
Patt Street, Anaheim, Calif.
Underwriter—J. D.
Bright Avenue, Whittier, Calif.
Creger & Co., 124 North
★
Brown
Investment Co., Ltd.,
Honolulu, T. H.
July 11 filed 60,075 shares of common stock (par $1).
Price—At net asset value, plus a selling commission of
71/2% of the offering price. Proceeds—For investment.
Business—A diversified, open-end investment company
Underwriter—Brown Manage¬
Co., 833 Alaska St., Honolulu,
Hawaii.
★ Burke Martin Mines, Inc.
Aug. 23 (letter of notification) 300.000 shares of common
stock.
Price—At par ($1 per share).
Proceeds—For
mining
expenses.
Office—901 Sherman St., Denver, Colo.
Charles A. Taggart & Co., Inc., both of
writer—To be named later.
retire
indebtedness
of
the
com¬
Philadelphia, Pa.,
Weill, Blauner & Co., Inc. of New York.
★ Atlas Sewing Centers, Inc., Miami, Fla.
Aug. 27 filed 180,000 shares of common stock
Shore
Mines, Ltd.* Toronto,
26 filed 600,000 shares of
—
Cadwell Mining Co., Denver.
(par $1),
of which 120,000 shares are to be offered for account of
selling stockholders. Price—To be supplied by amend¬
ment. Proceeds—For general corporate purposes. Under¬
writers—R. S. Dickson &
Burma
July
Co., Charlotte, N. C.
Audubon Park Raceway, Inc.
Colo.
Aug. 13 (letter of notification) 600,000 shares of common
stock: (par one mill). Price—50 cents per share. Proceeds
—For equipment, payment of current liabilities and
working capital. Office—2450 Kendall St., Denver, Colo.
Underwriter—Wayne Jewell Co., Denver, Colo.
For general corporate purposes.
★ Canton Merchants Parking Corp.
Aug. 17 (letter of notification) $300,000 principal amount
of 6% first mortgage leasehold sinking fund bonds due
Sept. 1, 1981 (in denominations of $1,000 each). Proceeds
—For construction of a parking building and leases.
Office—-538 Market Ave., Canton, Ohio. Underwriter—
T. Moore & Co.,
None.
July; 13 (letter of notification)
stock
(par
10
cents)
be
600,006
offered
shares of common
for
subscription by
stockholders at rate of 0.46875
common
each share held.
New
to
of
Price—10 cents per share.
a
share for
Proceeds—
Underwriters—Berwyn
Louisville, Ky.; Gearhart & Otis, Inc.,
York, and Crerie & Co., Houston, Tex.
/Automation Development Mutual Fund, Inc.
common stock.
Price—At
Aug. 24 filed 300,000 shares of
Proceeds—For
market.
ton, D.
C.
investment.
Office—Washing¬
Distributor—Automation Development Secu¬
rities Co., Inc., Washington,
Automation
D. C.
Industries
Corp., Washington, D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and
Treasurer.
;
7:3 ;v-7/7^^
7 Centers
Corp., Philadelphia, Pa.
(9/24-28)
July 30 filed $8,000,000 of 5%% sinking fund debentures
Aug. 1, 1971, and 1,600,000 shares of common stock
(par one cent) to be offered in units of $50 of debentures
and 10 shares of stock (neither of which will be separ¬
ately transferable until Aug. 1, 1958). Price — $50 per
unit. Proceeds—About $4,100,000 will be used to acquire
seven
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate
activities, and for general corporate purposes.
Underwriter
Blair & Co. Incorporated, Philadelphia
and New York. Latter has agreed to purchase an addi¬
tional 300,000 common shares and reoffer them to per¬
sons
selected by it at $1.10 per share.
Offering—Ex¬
pected latter part of September.
,:j777T7777,7^/77-7
due
—
•
Bahamas
Helicopters, Ltd.
(9/17-21) July 13 filed 300,000 shares of ordinary (common) stock
(par £1 sterling). Price—To be supplied by amendment.
—
of indebtedness.
Underwriter—Blair & Co. Incorporated,
New
.
York.
.*
Bangor Hydro-Electric Co.
(9/12)
prgram.
Dealer-Manager—Smith,
Barney
Co., New York.
Bentomite Corp.
of America
(letter of notification) 150,000 shares of common
stock (par $1).- Price—$2 per share. Proceeds—For min¬
ing expenses.
Office—290 N. University Ave., Provo,
Gets Sales Action!
Offers of securities and services get faster
when
you
other medium in Mid-America is
most
the
sales action
advertise them in the Chicago Tribune., No
so
widely read by
Utah.
Underwriter—Thomas Loop Co., New Orleans, La.
your
important prospects—both professional investors and
general public. For best results from
call your
advertising counsel
or
your
advertising^
nearest Chicago Tribune
representative today.
7-'
June 29
Cleveland
Boston,
and
Proceeds—To
amount.
pany td its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
&
to
Corp., Boston, Mass.
Canada
capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds
For equipment, exploration, drilling, working
capital and other general corporate purposes. Under¬
construction
San Francisco
Bonanza Oil & Mine
July 30 (letter of notification) 34,140 shares of common
stock (par 10 cents). Price—At market. Proceeds—For
Underwriter—None.
six shares held
(with an oversubscription priv¬
ilege); rights to expire on Sept. 25. Price—To be supplied
by amendment. Proceeds—To retire bank loans and for
Private Wires
preferred share for each common share held as of Sept.
11, 1956. Proceeds—To reduce bank loans. Underwriter
—To be determined by competitive bidding.
Probable
bidders: W. C. Langley & Co.; Stone & Webster Secu¬
rities Corp.; Salomon Bros. & Hutzler; Kidder. Peabody
& Co.; Harriman Ripley & Co., Inc.
Bids—To be re¬
ceived up to 11 a.m. (EDT) on Sept. 11 at 49 Federal
Street, Boston, Mass.
Atlas Credit Corp., Philadelphia, Pa.
Juqe 1JL filed $600,000 of 6% convertible subordinated
debentures due June 15, 1968. Price-i-100% of; principal
each
Philadelphia
(9/11)
Aug. 15 filed 25,000 shares of cumulative preferred stock
(par $100), of which 1,430 shares are to be offered for
subscription by common stockholders (other than East¬
ern Utilities Associates, the parent) on the basis of one
of the management type.
To purchase a 49% stock interest in Aero
Technics, S.A., for approximately $500,000, to make a
$200,000 down payment on three S-58 Sikorsky helicop¬
ters to cost a total of $1,025,000, and to retire $175,000
Chicago
Valley Gas & Electric Co.
ment
Proceeds
Pittsburgh
1
& Co.. Denver. Colo.
Blackstone
Okla.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per^s^re* Proceeds—For working capital
and general corporate purposes. Underwriter — To be
named by amendment.
Atlantic Oil Corp., Tulsa,
Aug. 21 filed 52,796 shares of common stock (par $15)
to be offered for subscription by common stockholders
of record Sept. 11, 1956 at the rate of one new share for
Boston
Uranium Co., Denver, Colo.
(letter of notification) 1,000,C00 shares of class
stock (par five cents). Price —• 10 cents per
share. Proceeds — For mining expenses. Office -— 762
Denver Club Bldg., Denver, Colo. Underwriter—Birkencommon
pay
No.
Inc., Seattle, Wash.
Grocers,
April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price — Of
stock. $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.
•
New York
Birnaye Oil &
April 6
mayer
Higginson Corp., New York.
ISSUE
properties. Office—1424 Pearl Street, Boulder,
Underwriter—Lamey & Co., Boulder, Colo, j
?
Colo;
★ Anheuser-Busch, Inc., St. Louis, Mo. (9/20)
stock (par $4).
Proceeds — To
Estate of Edmee B. Greenough, deceased. Underwriter—
Aug. 30 filed 328,723 shares of common
Price—To be supplied by amendment.
REVISED
mineral
A
holders at the rate of
scription by common stockholders of record Sept. 19 at
the rate of $100 of debentures for each 23 shares of
stock held; rights to expire on or about Oct. 3. Price—To
supplied
Underwriter—
PREVIOUS
Big Horn Mountain Gold & Uranium Co.
(letter of notification) 9,300,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
plant and for advances to, and
of, subsidiaries/
stocks
in
ADDITIONS
SINCE
ITEMS
Feb. 23
None.
fire
,
Aug. 31 filed approximately $16,377,000 of convertible
subordinated debentures due 1981 to be offered for sub¬
be
ceeds—For expansion of
investment
Arden Farms Co., Los
Underwriter—Beil & Hougn,
air carrier.
Inc., St. Petersburg, Fla.
-v'
14, 1956 at the rate of one new share for each 10 shares
held; rights to expire on Nov. 5, 1956. Price—At par
($100 per share) payable in one or two payments. Pro-
Inc.
notification) $100,000 of 6% convert¬
ible subordinated debentures due 1971 and 35,000 shares
of common stock (par $1). Price—Of debentures, 100%;
and of stock, $3 per share. Proceeds—To pay outstand¬
ing obligations and for general corporate purposes. Busi¬
Aug. 10 (letter of
ness—A cargo
(10/1)
Aug. 22 filed 5,800,000 shares of capital stock to be of¬
fered for subscription by stockholders of record Sept.
Lee
Aerovias Sud Americana,
& Telegraph Co.
American Telephone
Colo.
stock
mon
•
QftihiMje
.
i
thl
wombs
greatest
newsfafta
Volume
184 r^Number*1j560 ;;. The Commercial and Financial Chronicle
(1001)
• Central Mutual
Telephone Co., Inc. (9/7)
Aug. 22 (letter of notification). 21,025 shares of common
stock (par $ 10) to bcoffered-for subscription by com¬
stockholders at the rate of
mon
one
Proceeds—To selling stockholder
Inc.)' Underwriter-r-None.
shares held
of
Aug. 29. Price
working capital, etc.
Proceeds—For
as
$12
—
share.
per
Office—Manassa,
Underwriter—Folger, Nolan, Fleming-W. B. Hibbs
Co., Inc., Washington, D. C.
- '
>
C.
&
—To repay
if Central Oils. Inc.
Aug. 24 (letter of notification) 500,000 shares of common
stock.
Price-fAf'par (10 cents per share). Proceeds—
For ©in development expenses. Office—Prineville, Ore."
/Underwriter—None.
'
development;
expansion; equipment;
porate purposes.
Underwriter—None.
and
other
bank loan, for expansion and working capital.
M. Byllesby & Co., Inc.,
Chicago, 111.
Underwriter—H.
Century Controls Corp., Farmingdale, N. Y.
Aug. 27 filed 120,000 shares of .common stock (par $1).
Price—At market (over-the-counter price in New York).
share). Proceeds—To go to Alexis E. Post, San Fran¬
cisco, Calif. Underwriter — Stone & Youngberg, San
by
Francisco, Calif.
Washington, D. C.
September 7
r.
,
•»/.
,
Central
i
i
Mutual
ISSUE
stock (par $12.50), to be offered for
subscription
stockholders.. Price—$17 per share.
Proceeds—For
working capital, etc. Underwriter—The Matthew
Corp.,
Claussen Bakeries, Inc.,
Augusta, Ga.
Aug. 13 filed $250,000 of 6% debentures due
1966, and
166,000 shares of common stock (par $1), of which the
debentures and
16,000 shares of stock are to be offered
publicly and the remaining 150,000 shares of stock are
to be offered for
subscription by class A and cl&ss B
Inc
Common
Ripley &
(Mason-Hagan,
Strader,
and
inc.
Inc.
Taylor
&
stockholders at the rate of two-thirds of
.
Fortune Petroleum
(Willis
Common
Burnside
e.
&
Co.,
$300,000
inc.)
Gulf States
Utilities Co.
*
'
(Bids
12:30
„
J,
.
.
Hawaiian
EDT)
p.m.
+
T
100,000 shares
...
.
T»
e
—
&
Otis,
Inc.)
(Offering
r'_
stockholders—to
to
Morgan Stanley & Co.)
Republic
Cement
by
.
(H
Co.
(The
First
Boston
corp.)
Metal
Weld
..
_T
corp.)
0,
_
.
10
Edwards
g.
&
...
Sons)
Lane,
Space
&
Brooks
&
_
Brooks
W.
.
inc.)
&
Co.,
(Wednesday)
Langley
(Offering
Co.
First
Boston
Corp.
by
and
,
.
Cdrp.)
$35,000,000
(Monday)
11
about $580,000,000
...
EDT)
a.m.
.Debenture.
$25,000,000
October 4
to
invited)
be
&
Co.)
213,175
October
shares
$3,600,000
"
Common
(Offering to stockholders—to
by Morgan Stanley
Co.)
be
October
Southern Bell
(Bids to
be
invited)
October 9
(Blair & Co.
Musitine
Common
Incorporated)
300,000
Corp...
A
...Common
©o.; Shelley, Roberts & Co.;
General
Investing Corp.)
$294,750
Reiter
'
(Tuesday)
Bonds.)':
.
.
::
& Gas
(J.
Corp
CCV"
(Bids to
Willlston & Co.)
R.
—Preferred '
...
be invited)
October 23
100,000 shares
...
^
$30,000,000
Central
September 18
Steel
Acme
(Blyth
Inc.
&
and
(White,
Weld
Petroleum
Common
Lynch,
Merrill
Beane)
400,000
Pierce,
£
"
:
about
Co.)
Inc.)
Common
|
'
Interest
nhi
>
rihin
Pnwpr
(Tuesday)
r
Co
Bonds
fn
Preferred
F°Wer(mds"II""a'.mT^
Pnwpr
OhlO.FOWer
units
Under¬
Co.,
Offering—
Underwriter—None.
C0nSoiidated Edison Co of New York Inc.-Bonds
°hl°
of
^
Co.
(Bids to be invited) $40,000,000
$2,500,000
500,000
Service
October 30
Trust........Units
(Dillon, Read & Co.,
Public
(Bids to be invited) 170,000 shares
Fenner
Notes & Common
&
:
Illinois
-
shares
Intermountain Gas Co
Marine
3-
——I-
Co...
Co.,
&
(Tuesday)
.
N. Y.
Commonwealth, Inc., Portland, Ore.
(letter of notification) 5,912 shares of 6% cu¬
mulative preferred stock being offered for subscription
by stockholders of record April 16, 1956 on a pro rata
basis; rights to expire on July 2, 1956. Price—At par ($59
per share).
Proceeds — For working capital. Office—
Equitable Bldg., 421 S. W.> 6th Ave., Portland 4, Ore.
Bonds
(Tuesday)
0
Edgemere 91,
March 23
.
.
Nortex Oil
(par 10 cents).
(letter of notification) 50,000 shares of common
being offered initially to stockholders (par $2).
Price—$5.50 per share. Proceeds—To be added to gen'ieral funds and for expansion of business. Office—5579
Pershing Ave., St. Louis, Mo. Underwriter—Edward D.
Jones & Co., St. Louis, Mo.
$60,000,000
Public Service Co. of Indiana, Inc.
and
Industries, Inc.
of notification)
(letter
stock
Commercial Life Insurance Co. of Missouri
.
.
of At¬
stock
(Bids to be invited) $8,000,000
shares
both
June 21
_____.Debentures
California Electric Power Co
Bahamas Helicopters, Ltd
Inc.,
New York (latter handling books).
Indefinitely postponed.
/ . -
'
shares
&
(Monday).
September 17
Robinson-Humphrey
Co.,
both of
(Monday)
——
—
&
—The
Debentures
Telephone & Telegraph
Co.
Underwritten
94,803
8
The
short-term loans and for working capital. Underwriters
First Boston Corp. and Kidder, Peabody &
(Fridav)
(rriudy;
<a. c. Aiiyn & Co., inc.) about $1,000,000
•
—
Hilsman
Commercial Credit Co.
Four Wheel Drive Auto Co
Debentures
:
5
uclODer 3
Underwriters
July 31 filed $50,000,000 of notes due Sept. 1, 1976. Price
—To be supplied by amendment.
Proceeds—To repay
Equip. Trust Ctfs.
(Bids
voting
one
writer—Harold D. Levine, 82 Beaver
Street, New York.
Common
by
'
the basis of
eight shares of either class of
(with an oversubscription privi¬
Far Rockaway Boulevard,
v
(Thursday)
Virginian Ry.
on
each
held
—To pay accounts
(Wednesday)
^
-
300,000 shares of com¬
Price—$1 per share. Proceeds
payable^ for equipment and inventory
purchases and for other general corporate purposes.
Business—Wrought iron furniture, etc.
Office—33-01
mon
.
'
underwritten
then
loans.
Aug. .6
Common
.
shares
Sept. 3, 1956
Co., Inc. and J. H.
lanta, Ga.
oli(l11,n£,
Debentures
.
stock
bank
$18,000,000
to stockholders—-no underwriting)
(Bids
Sugar Refining Co
j.
Co.)
1
CoJumbla Qas g
September 14 (Friday)
'
underwritten
n
October 3
C»mmon
(Goldman, Sachs & Co.) $70,ooo,wo
(M.
be
Boston
^-v:V-.'m-''■'-»
lege); subscription warrants to be good for a period of
three weeks. Price—$25 per share. Proceeds—To reduce
Preferred
First
&
October
$225,oo&
be
Procter & Gamble Co
National
such
American Telephone & Telegraph Co
$2,240,000
52,500
stock of record
Combined
Common
Inc.)
Bonds
(U/oHiod-.w)
The
Broad St.r New
•
$20,000,000
stockholders—to
Inc.;
:
Columbia Baking
Co., Atlanta, Ga*
Aug. 17 filed 26,768 voting trust certificates, each
repre¬
senting the beneficial interest in one share of common
stock (no par), to be offered for
subscription by holders
of outstanding common stock and
participating preferred
(Tuesday)
n
(The
Debentures
stockholders—to
to
Bache
.i,
.
,
„
Co
(Offering
National
.
Peabody Coal
^
& Co.,
-
'f
.
.
Aug. 28 filed 500,000 shares of common stock
(par 10
cents). Price—$1 per share. Proceeds—For
swimming
pool and related activities, bowling alley, site
preparation
including parking, and land cost ($95,000). Underwriters
—Arthur L. Weir & Co., Colorado
Springs'/Colo.; and
Copley & Co.
and
,
$300,000
EDT)
a.m.
common
Co.,
W. C.
(Thursday)
nc&
11
&
;
,
Bonds
Lynch Carrier Systems, Inc.—
Poor
to
$299,425
^
(P.
(Offering
„
Lynch Carrier Systems, Inc
w.
,
principal
Colorado.Springs Aquatic Center, Inc.1
trust certificate for
Blyth
Inc.)
Co.,
September 13
(P.
-
Long Island Lighting Co
White,
....Class A Common
...
Kay JeweIry Stores
,
by
„.
(Johnson,
/
(Bids
j
Class A Common
(A.
debentures
1,1
'
Virginia Electric & Power Co.
$15,000,000
_
Scripto, Inc.
'
September 26
,v
CDT)
a.m.
of
40,000 shares of stock
•
#;
85.2G6 shares
'
.
$2,000 000
(Kuhn, Loeb & Co.) 200,000 shares
Barney
$263,500
Polymer Corp
4
Smith,
■
Northern States Power Co
(Bids
inc.)
Allentown Portland Cement Co...Class A Common
Common
& Co.)
co
,'clark! taSKSt* & iUrkTa'trte©^)""wSfao
Common
by
<;
;
Debentures & Com.
September 25
shares
150,000
stockholders—underwrftten
to
^
"
Common
Hydrides, Inc
(Offering
w''
Kn^an
<
Class A Common
Matthew
&
$109,245.50
Purchase
plant, etc. Office—90
rork, N., of
Y. Dover
Underwriter—None.
,
'
L
Citizens Credit Corp
(The
Byllesby
Office—Greens¬
(with an oversubscription privilege);
rights to expire on Sept. 14. Price—At 100% of
principal
amount.
Proceeds—For working
capital, construction,
•
(Monday)
(Wednesday)
stockholders—underwritten
& Co.) 52,796 shares
to
M
'
500,000 sharea
Bangor Hydro-Electric Co
(Offering
v
Devall Land & Marine Construction Co., Inc.—Com.
..Common
America
of
»
Debentures & Common
_
•
^
September 12
Common
$2,500,000
(Vickers Brothers)
Co
<The First Boston Corp. and Dean Witter & Co.)
Aluminum
Co.)
Century Food Markets Co
.Bonds
11
California Edison
&
...
amount of 6% convertible
subordinate, debentures, due
June .l, 1966 being offered for
subscription by holders
of common stock at the
rate of $1.30 for each share
held as of Aug. 24
(Biair&co. incorporated) $8,000,000
ff:
Telephone Co.
ofCalifornia—
a.m.;EDT) $20,000,000
Southern
Fuller
Ice Co.
Colonial Utilities Corp.
June
4
(letter of notification)
Debentures
_
September 24
\
,;j•
(Bids
D.
share
•
Higginson Corp.) 328,723 shares
(S.
a
class A and/or class B
negotiable notes of Stonhard
Co., Inc.
boro, N. C. Underwriter—None.
v.
.
,
Centers Corp.
(Tuesday)
v
•
^
—Common
;1.
r
/ V
T
J.'■*
.
RlnnkQtonP Vallpv flac
Flppfrir Cn
Preferred
Blackstone
Valley GasElectric
Co.-.Preferred
General
and
United Cuban Oil, Inc. ———Common
$9,650,000
September ! 1
Co.;
&
(Thursday)
Anheuser-Busch^^nc
;
about $40,000,000
Brothers)
September 20
(Lee
Corp..
(Vickers
Forgan
each
Co., Inc., Savannah, Ga.
Colonial
to common stockholders—to be underwritten by The
First Boston Corp. aiw Smith, Barney & Co.) $16,377,000
Common
underwritten
be
Glore,
for
Of
Aug. 6 (letter of notification) 15,000 shares of common
stock (no par) to be offered to
common
stockholders.
Price—$20 per share. Proceeds—For acquisition of 5%
(Offering
$3,750,000
North American Aviation, Inc.—
/
'
I
Common
—
(Gearhart
Barney & Co.;
Allegheny Ludlum^Steel Corp.—
*
hiiectric L.O., J-ita.
Irreierrea
(Dillon, Read <& Co. Inc. and Dean Witter & Co.) $5,000,000
Minerals, Inc.
"s
.
&
Debentures
...
Hallgarten & Co.) $20,000,000
Gulf States Utilities Go.——~—_——Common
,
Bonds
$35,ooo,000
-
(Smith,
Bonds
EDTf $ l5,000~00"(f
(Bidsnoon
—
private placement of preferred stock
by H.
Sons, Inc., a subsidiary, to retire debentures
and subsidiary's preferred
stock; for expansion and other
corporate purposes.
Underwriter—Johnson, Lane, Space
(Kidder, Peabody & Co.) $7,500,000
Co., Inc.
£ Debentures
'
Wilson &
.
stock
Price
H. Claussen
(Wednesday)
EDT)
noon
Walt Disney Productions
Corp
'
(Eids
held.
funds from
by Harriman
$33,091,500
Southern Pacific RR. Co.......
$270,000
September 10 (Monday)
•t
Inc }
common
debentures, 100% of principal
amount; and of stock to stockholders, $5.50 per
share;
and to public, $6.50
per share.
Proceeds—Together with
Preference
Co
September 19
Common
Inc.)
Co.,
new
stock
to stockholders—to be underwritten
e
(Offering to stockholders—to be underwritten by Folger,
Nolan, Fieming-w. b. Hibbs & Co., inc.) $252,300
Johnson-Carper Furniture Co
of
United Aircraft Corp
Tv»(Offering
Co.,
,
Corp.
common
CALENDAR
(Friday)
r>^
Telephone
Albert
* Citizens Credit Corp., Chevy Chase, Md. (9/12)
(letter of notification) 15,500 shares of class A
common
NEW
;
Financial
Aug. 27
Christian Fidelity Life Insurance Co.
July 12 filed 20,000 shares of common stock (par $10) to
be offered first and for period of 30 days to stockholders.
Price—$26 per share. Proceeds—For capital and surplus,
including $200,000 to be invested kv securities common to
•
I. T.
Aug. 17 (letter of notification) 15,000 shares of common
stock (par $1).
Price—At market (estimated at $6,625
per
cor¬
Office—Waxahachie, Tex.
Offering—Temporarily postponed.
^Chemical Process Co.
•
Century Controls Corp., Farmingdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and
industry.
May 17 filed*$75,D001,000 of debentures due Aug. 1, 1971. *
Price—To be supplied by amendment.
Proceeds—Pri¬
marily for furnishing working funds to company's siib- ;v"
sidiaries.
Underwriters—Dillon, Read & Co. Inc., Kuhn,
Loeb & Co. and Lehman
Brothers, all of New York.
bentures and 40,000 shares of common stock (par
$1) to
be offered in units of $50 of debentures and one share
of stock. Price—To be supplied by amendment. Proceeds
Va.
insurance
sales to be made through
Carroll Bates, President of the
company.
,
two
life
Underwriter—None,
.V'
if Century Food Markets Co., Youngstown, Ohio
(9/24-28)
Aug. 30 filed $2,000,000 of convertible subordinated/de¬
share for each
new
the
(Ray, Daisley & Co.,
29
CIC
.
Consolidated Oil Management
Aug. 16 (letter of notification) $250,000 of 10-year 5^2%
collateral trust bonds due Sept. 9, 1966.
Office—7352
Central Ave., St. Petersburg, Fla.
Predecessor—Lynch
Oil Co.
Underwriter—Security & Bond Co., Lexington,
Kentucky.
',
_
Southern Nevada Power Co
(Bids noon
Tennessee
(Stone
&
Gas
Webster
edt)
Corp^;
&
-
>.•
-
^November 14
Co.—
White,
ino
Gas Transmission
(Stone
ia
$4,000,000
Transmission
Securities
Haisey. stuart * co
Tennessee
Bonds
Weld
Co.;
Public
Service
Electric
(Bids
and
11
a.m.
&
Gas
EST)
Co
Bonds
$50,000,000
March
28
.
Equity Securities" Corp.
filecj 40,000 shares of class A common stock
(par $5) and 80,000 shares of class B common stock (par
Price—Of class A stock, $12.50 per share, and
of class B stock, 50 cents per share. Proceeds—To in50 cents).
jao.ooo.ooo
Co
Webster
Securities
Corp.
and
* Weld & Co.) $20,000,000
..Bonds
&
Continental
(Wednesday)
Preferred
White,
November 27
_
,,
.
„
t
(Tuesday)
....
Carolina Power & Light Co.
'
(Bids to be invited) $15,000,000
—..Bonds
•
Continued
on
page
30
39
The Commercial and Financial Chronicle
(1002)
Continued
dent.
Office—Alexandria, La. Un¬
capital and surplus.
crease
Life
Sun
Bros.
Price—$10
(par $1),
Proceeds—To expand company*!
Lauderdale, Fla. Underwriter—
Offering will be made through James C. Dean
business.
notification) 600,000 shares of common
-stock.
Price—At par (50 cents per share). Proceeds—
For purchase of stock of affiliates and working capital.
Office—9036 Culver Blvd., Culver City, Colo.
Under¬
writer—L. A. Huey Co., Denver, Colo.
14 (letter of
None.
per
share.
Office—Fort
over
President of company.
■
•
575,000 shares of common
/ stock. Price—50 cents per share. Proceeds—For mining
expenses.
Office — 1902' East San Rafael, • Colorado
Springs, Colo. Underwriter — Skyline Securities, Inc., v
Gas Hills Mining and Oil, Inc.
Denver, Colo.
Jan. 4 (letter of notification) 1,200,000 shares of
March 8 (letter of notification)
mon
Crestmont Oil Co.
June
'Gerieral Credit, Inc.,
Securities
':"i
-
Co.,
Genera! Telephone Co. of California
Price—At
par
(flat).
and
for
and
Underwriter—None.
Oevall Land & Marine Construction Co., Inc.
(9/24-28)
May 16 (letter of notification) 150,000 shares of com¬
,
Charles, La.
;//'
Underwriter—None.
Si ^
Is President.
purchase five common shares. Price—$25.50
(each warrant will entitle the holder to pur¬
unit
chase
one
common
share
at
stock,
V
any
at
writer—None.
Feb.
23
Operates
•
June
Corp., Carrollton, Tex.
filed
500,000 shares of common stock (par 1C
— $1
per share.
Proceeds
For working
capital, to be devoted mainly to
acquiring, exploring,
developing and operating oil and gas
properties; and tc
pay off $13,590.80 liabilities.
Underwriter
James C
McKeever & Associates. Oklahoma
City, Okla.
cents).
Price
—
N.
Maurice Schack, Middletown, N. Y.,
cent).
Price
for
working capital.
Co., Denver, Colo. •
Price—To
stock
(par
one
Proceeds
For ex¬
and acquisition of
properties and
—
Underwriter—Columbia
Securities
stock.
Idaho.
Underwriter—None.
tion.
Price—60 cents per share.
Inc., New York.
.
-
-
common
stock
—
hotel.
States
Securities
Dealers.
Corp., San
Francisco, Calif. Underwriter—First National Securities
N.
13th
Inc.,
•
;
Utilities Co.
rtock
—
Franklin & Co., Los Angeles. Calif.
v
•
For
(9/10)
first mortgage
..
Bell
Telephone Co.
B.
<
/
Underwriter—None.
:
.
,
Industrial Minerals
Development Corp.
March 7 (letter of
notification) 1,000,000 shares of
mon stock.
Price—Five cents per share.
com¬
Proceeds—For
development and working capital.
Underwriter—I. J. Schenin Co.. NewOffice—Moab, Utah.
York.
Intermountain Gas Co.
(9/18)
/ /
Aug. 24 filed $2,500,000 of subordinate
interim notes due
July 31, 1962, and 50,000 shares of
common stock
(par
$1), to be offered publicly in units
of $50
principal
amount of notes and
one
bonds
,
due
tion program...Underwriter—To be determined by com-
Probable bidders: Halsey,
Illinois
Aug. 10 filed 580,531 shares of
capital stock being offered
for subscription
by stockholders of record Aug.
31, 1956,
on the basis of one
new share for each
eight shares held;
rights to expire on Sept.
28, 1956. Price—At par ($100
per share).
Proceeds—To repay advances from
parent,
American
Telephone & Telegraph Co., which
owns
4,612,578 shares (99.32%) of Illinois
company's stock.
Atlanta, Ga. Under¬
Proceeds—To repay bank loans and for construc¬
of
u
;•///.
(letter of notification) 150,000 shares of
capital
(par $1).- Price-^-$2 per share.
Proceeds
equipment, machinery, inventory, etc.
Office—12909 So.
Ave., Hawthorne, Calif. Underwriter—Samuel
Hyde Park, Boise,
1986.
*•
i%.:: .//./„/
Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec. 16
common
10
r
Underwriter—None.
transaction.
/
Aug.
%petitive bidding.
.
common
10
Aug. 10 filed 78,275 shares of capital stock
(par $2.50)
and rights to subscribe to an
additional 391,375 shares
(exercisable over a five-year period at
$13 per share).
Of the total,
77,500 shares, plus rights to purchase an
additional 387,500
shares, are to be offered in exchange
for the license
rights and assets of Hayden
Projects, Inc.,
and the
remaining 775 shares, plus rights to
buy an
additional 3,875 shares, are to be
issued to Cady, Roberts
& Co., New York
City, as a fee for its services with such
Dec. 30 (letter of notification) 24,000 shares of
capital
(par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P. O. Box 2231.
Baton Rouge, La. Underwriter—None.
s
(par
Denver, Colo.
Underwriter—None.
$15,000,000
—
Cerise
Office—William-Oliver Bldg.,
filed
Address
*'
Hydrometals, Inc., Chicago, 111.
Proceeds—For mining
St.*,
j
cents). Price—$1 per share. Proceeds—,
For finding and
marketing oil and gas. Office—413 First I
National Bank
Bldg.,
Underwriter—None.
Uranium
Office—1519
Gulf States
Underwriter—\
it Hub Oil Co.
24 (letter of notification) 300,000 shares of
rtock
.
Exploration Co., Inc.
P. O. Box
308, Winterhaven,;
Underwriter—Arthur B. Hogan, Inc.,
Hollywood,?
stock
Guaranty Income Life Insurance Co.
Foster-Mann,
/
Aug.
Underwriter—None.
rate purposes.
Proceeds—For gen¬
Underwriter
First National Mutual
Fund, Inc.
June 27 filed 50,000 shares of common
stock (par
$1), of
which 10,000 shares are to be offered for
sale at $10 per
share to not more than 25
people, whereupon the com¬
pany will declare itself an open-end investment
company
and change the
offering price of the remaining
40,000
shares to net asset value plus a
distributing charge. In¬
vestment Adviser—First National
Investment
$7,000
Salinas, Calif.
May 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals and firms who
are
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds—For
working capital, capital expenditures and other corpo¬
Explorations, Ltd.,
Toronto, Canada
June 4 (regulation
"D") 500,000 shares of
purposes.
one
Growers Container Corp.,
—
Dome
expenses.
Calif,
writer—None.
—
corporate
and
it Great Southern Investors Services, Inc.
July 27 (letter of notification) 197,300 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
working capital and to establish a marketing organiza¬
—
(par $1).
resort
Price—10 cents per share.
expenses.
it Dryden Oil Corp.
Aug. 23 (letter of notification)
50,000 shares of common
stock. Price
At par ($1 per
share). Proceeds
For
development of oil and gas.
Office
Virginia and
Truckee Bldg., Carson
City, Nev. Underwriter—None.
Eastern-Northern
eral
stock
it Good Hope Investors. Inc.
Aug. 14 (letter of notification) 468,535 shares of
certain subsidiaries and associated
companies.
be supplied
by amendment.
Proceeds—For
expansion, etc.
B
Corp., Buena Vista, Colo.
notification) 3,000,000 shares of capital
(par five cents). Price—10 cents per share. Pro¬
ceeds — For mining expenses. Underwriter — Bel-Air
Securities Co., Provo, Utah.
I
Dow Chemical
Co., Midland, Mich.
Aug. 27 filed 150,000 shares of common stock
(par $5)
to be offered for
subscription by employees of the com¬
pany and
class
Dec. 27 (letter of
1
.
ing
Calif.
Offering—Expected late in September.
Dawn
Marlton, N. J.
Winterhaven, Calif. '
April 13 (letter of notification) 250,000 shares of
capital \
Price—At par ($1 per share). Proceeds—For min¬
filed
Golden
610,
/ stock.
itock
10 cents per share.
—
ploration, development
of
Underwriter—All
Y.
Box
Co., Las Vegas, Nev.
Hiskey Uranium Corp.
...»
May 31 filed 500,000 shares of common stock
(par 30;
cents). Price—$1 per share. Proceeds—For
drilling ex-1
penses, purchase of properties and
working capital. Of-11
fices—Las Vegas,.Nev., and Salt Lake
City, Utah. Under-,
writer—Ackerson-Hackett Investment Co., Reno, Nev.
Holden Mining Co.,
Seal
22
New York.
—
Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common
Gold
year-round
—
National Securities
Dairy Products Corp.
200,000 shares of class A stock (par 10
cents). Price—$5 per share.
Proceeds—For expansion
and to repay outstanding obligations.
Office—Remsen,
;
Doctors Oil
shares
Proceeds—For
capital.
r
Statement effective March 11.
2,950
stock to be offered in units of one
class A and
shares. Price—$30 per unit.
Hidden
debenture. Price—$10,000 per unit. Proceeds—For pur¬
chase of property, remodeling of present main building,
for new construction and working capital.
Business—
time prior to Dec. 31,
$2 per share). Proceeds—To repay
mortgages, to
$1,312,500 of five-year 6% sinking fund
debentures, and
for further acquisitions and working capital. Under¬
1957
Co., Pittsburgh, P«-
May 15 (letter of notification) 3,000,000 shares of
capital!
stock. Price—At par (10 cents
per share). Proceeds—I
For the development of oil and
gas properties. Office219 E. Fremont
Ave., Las Vegas, Nev.
of Texas and Colorado in units of 50 shares of class A
warrant to
per
to
Fund," Inc., New York
Aug. 31 filed (by amendment) 200,000 additional-shares
j
of common stock. Price—At.
market. Proceeds—For in-l
vestment. Change in Name —
Formerly Spencer- Greani
Fund,:Inc.
v
* Diversified Oil & Mining Corp., Denver, Colo.
Gold Mountain Lodge, Inc., Durango, Colo.
Aug. 29 filed 2,500,000 shares of 6% convertible non- 1
cumulative preferred stock, first series
Aug. 23 filed 5,000 shares of class A voting common
(par $1), and
warrants to purchase 500,000 shares of common
stock (par $1), 295,000 shares of class B non-voting
stock
common Stock (par $1), and $700,000 of 4% debentures
(par 10 cents) to be offered for subscription
initially by
common stockholders in units of 25
due Dec. 31, 1975, to be offered for sale in the States
preferred shares and
a
Bank,
"it Heritage
(N. J.), New York
of common stock /(par 10
cents). Price—$1 per share. Proceeds!—For plant facil¬
ities, survey of property and underground development.
Underwriter—Vickers Brothers, Houston,
;■ ■.//
■
Hanover
Address
Underwriter—None.
General Uranium Corp.
Jan. 18 filed 400,000 shares!
(par $1). Price—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boats
and working capital.
Office—1111 No. First Ave., Lake
Tex.
up
(EDT) on Sept. 10 at The
Broadway, New York 15, N. Y.
working
Underwriter—None.
stock
mon
received
common
July 27 filed 26,068 shares of $5 cumulative preference
stock (par $100) to be offered in exchange for common
stock and 6% promissory notes of Carlon Products Corp.
The exchanger offer, .will be subject to acceptance by
owners of all of the outstanding $1,060,000 notes and by
not less than 39,400 of the 68,837 shares of Carlon stock.
Proceeds—To
construction
(jointly); Carl
be
two class B
General Tire & Rubber Co., Akron, Ohio
stockholders of record Aug. 17, 1956 at the rate of $100
shares of stock held; rights to
of debentures for each 21
short term bank loans
Brothers
Bids—To
Hedges Diese), Inc.
Aug. 22 (letter of notification) 10,000 shares of class A
common stock
(par $10) and 20,000 shares of class B
Proceeds—To discharge bank loans
and for construction program.
Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;
Kuhn, Loeb & Co. and Salomon Bros. & Hutzler (joint¬
ly); Paine, Webber, Jackson & Curtis and Stone & Web¬
ster Securities Corp. (jointly); White, Weld & Co. and
Kidder, Peabody & Co. (jointly). Bids—Tentatively ex¬
pected to be received up to 11 a.m. (EDT) on Sept. 11.
July 24 filed $59,778,900 of 3%% convertible debentures
due Sept.
14, 1971, being offered for subscription by
other purposes.
(9/11)
J, due Sept. 1, 1986.
Detroit Edison Co.
repay
Lehman
Co.
—
Aug. 13 filed $20,000,000 of first mortgage bonds, series
mon stock
(par $1) to be sold in units of one share of
preferred and one share of common. Price—$10 per unit.
Proceeds—For working capital. Office—10532 Stanford
Ave., Garden Grove, Calif. Underwriter—None.
expire oh Sept. 14.
and
-
Offering to be made through selected dealers.
it Danny's Do Nuts Investment Corp.
Aug. 17 (letter of notification) 12,500 shares of 8% cumu¬
lative preferred stock (par $9) and 12,500 shares of com¬
I
;To" be
equipment anda
working capital. -Office — 377 McKee
Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co.,
Pittsburgh, Pa.
Hawaiian Electric
Co., Ltd. (9/10-14)
• >
Aug. 20 filed 250,000 shares of cumulative preferred
-stock, series F (par $20). Price—To be
supplied by
< amendment.
Proceeds
For construction
program and
for retirement-of bank loans.
Underwriters
Dillon,
Read & Co. Inc., New
York, and Dean Witter & Co., San
Francisco, Calif.
purchase 160,000 shares of participating preference
stock; to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit.
Proceeds—For expan¬
sion and working captal.
Underwriter — None named.
\*r
-
(no par).
—
for
Washington, D. C.
debentures, due Sept. 1, 1971, with detachable warrants
Colo.
Denver,
Beane
Rhoades &
p.m.
Hard Rock Mining
to
Inc., Grand Junction, Colo.
April 16 (letter of notification) 2,700,000 shares of comS mon stock (par one cent).
Price—10 cents per share
Proceeds—For mining expenses. Office—1730 North 7th
Street, Grand Junction, Colo.
Underwriter—Columbia
•
bank loans. Underwriter
by
Feb. 20* (letter of notification)
1,000,000 shares of com¬
mon stock (par tine
cent). Price—Five cents per share.
Proceeds—To purchase machinery and
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
Underwriter—None.
& Uranium,
stock
common
Gunkelman (R. F.) &
Sons, Fargo, N. D.,1
;
May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock
(par $100). Price—$98 per share.
Proceeds
For expenses incident to
commercial grain
business. Underwriter—W. R. Olson
Co., Fargo, N. D.
development expenses. Office — 1907 Broadway Ave.,
Scottsbluff, Neb. Underwriter — Edward C. Colling,
Scottsbluff, Neb.
8,500 shares of common stock (par $10) to be offered in
of one $10 note arid one share of common stock.
Oil
repay
/
■
(9/10)
—
units
'
Price — 25 cents per shart l
incident to mining operations
Wyo. Underwriter—Philip Gordoi
&
Loeb,
70
it Genco Oil Co., Inc.
Price—$20 per unit. Proceeds — For working capital;
payment of contract and replacement' of transmission
Dalmid
Fenner
expenses
Aug. 24 (letter of notification) 55,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For oil
Utilities Co.
competitive bidding. Probable bidders:
Stone & Webster Securities
Corp.; Merrill Lynch, Pierce,
com ¬
* Cut Bank Gas Co., Cut Bank, Mont.
lines.
determined
12:30
Office—Kemmerer,
& Co., Inc., New York 6. N. Y.
Aug. 24 (letter of notification) $85,000 principal amount
of 6% subordinate interim notes due Oct. 15, 1962 and
'
Bank, 70 Broadway, New York 15, N. Y.
Proceeds—To
M.
Price—$6.25 per share. Proceeds-Toselh. /
ing stockholders.
Office — 2201 West Burbank Calif.
Underwriter—Neary, Purceil & Co., Los Angeles, Calif .
stock (par $1).
Brothers; Merrill Lynch, Pierce, FenWhite, Weld & Co. (jointly); Salomon
and
Aug. 10 filed. 100,000 shares of
stock (par five cents).
Proceeds—For
(letter of notification) 8,000 shares of common
28
Hutzler
Gulf States
Petroleum
Corp. (9/10-14)
July 20 (letter of notification) 300,000 shares of com-.
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For exploration and drilling costs.
Office—4645 Van
Nuys Blvd., Sherman Oaks, Calif. Underwriter—Willis ;.A
E. Burnside & Co., Inc., New York.
"Co., Inc.
Crater Lake Mining & Milling
Fortune
&
Thursday, September 6,1956
Union Securities
Corp. (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly);
Lee Higginson Corp. and Carl M.
Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—To
be received up to noon (EDT) on Sept. 10 at The Han¬
Insurance Co.
March 16 filed 32,000 shares of common stock
Electronics Corp.
Contract
,y
Florida
derwriter—None.
Aug
Co. Inc.; Lehman
ner & Beane and
Co., same city, of which Wiley S. Killingsworth is Presi¬
from page 29
..
.
Stuart
v<$'-
&
—To
be
supplied
by
share of
common
amendment.-
stock.
Price
Proceeds—Together
with funds from
private placement of $*.non.00n
of fm<?t
mortgage bonds and sale to Idaho
residents of 140,000
additional shares of 'common
stock at
$5 per share to
Volume
184
Number 5566
The Commercial and Financial Chronicle
(1003)
be
used
to
refund
a
$5,000,000 bank loan
and
construction
program
to introduce natural
Idaho communities.
Underwriter
Southern
Weld
&
for
pay
-
in, 23
gas
White,
—
Co., New York.
International Basic Metals, Inc.
(letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South
Jan. 27
Kusan, Inc., Nashville, Tenn. (9/24-28)
Aug. 29 filed 116,624 shares of" common "stock (par $1).
Price—To be supplied by amendment
(expected to be
$5 per share). Proceeds—To reduce debt, for new tool¬
ing and equipment and working capital.
Business —
Manufacturer of toys, electric trains and various custom
plastic items. Underwriter—Clark, Landstreet & Kirk-
Patrick, Inc., Nashville, Tenn.
'International Plastic Industries Corp.
;
Oct. 12 (letter of notification) 150,000 shares ot commor
stock* (par 10 cents). Price—$2 per share
Proceeds—
For advances to Arliss Co.; Inc; for purchase of
equip
ment, etc. Office — 369-375 DeKalb Ave., Brooklyn I
(
N. Y.' Underwriter—Kamen
&
Co.. New
,
/
of
washing machines and
Office—Morris Plains, N. J.
share).
and
;
to
and distribution
..
.
"
ceeds—For
laundry equipment.
Underwriter—None.
payment
vances; exploration
on
properties;
repayment
and development
ital.
.V?-?
of
ad¬
and working cap¬
Office—508 Peyton Bldg.,
Spokane/ Wash. Under¬
writer—Standard Securities Corp.,
Spokane, Wash.
common
(par, $1) to be offered, to stockholders; the balance
go
jurisdictions to
—
,
outboard cruisers.
Office—471 N. E. 79th Street.
Miami,
Flar. Underwriter—Atwill & Co., Miami Beach, Fla.
«
Bldg., Denver, Colo. Underwriter—None.
Lewisohn Copper Corp.
Investment Corp. of Florida
Aug. 24 .filed $515,000 of $60 cumulative preferred stock
$1,000 each and 5,150 shares of
common stock to be offered to purchasers of preferred
stock at 10 cents per share at rate of ten shares for
each preferred Share bought.
Proceeds—For working^
capital.
Office—Fort Lauderdale, Fla.
Underwriter—
"
Beverly, Mass.
common stock
(par $5)
offered for subscription by common
stockholders
of record about
Sept. 12 on the basis of one new share
for each three shares
held; rights to expire on or about
to
properties,
..
improvements,
equipment
Office—Tucson.
purposes.
F. Breen, New York.
None.
and
Ariz.
for
general
Offering—Postponed.
of
by
plant
amendment.
and
Pro¬
working capital.
■
Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage
pipe line bonds
1976.; Proceeds—To
pay off short term bank loans
for construction
program.
Underwriter
To be
determined by competitive
due
and
—
bidding.
Halsey,
Stuart
&
Probable bidders;
First Boston Corp.;
Co.
Inc.; The
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No
new date
600,000 shares of common stock (par 10
for bids has been set.
V
cents), of which 600,000 shares are to be sold for ac<
I,
Midland General
count of the company and 90,000 shares for
Hospital, Inc., Bronx, N. Y.
selling stock¬
Jan. 12 filed 24,120 shares of
holders. IPrice—$1 per share, by amendment. Proceeds
common
stock (no par)
and
—For exploration and development and other
30,000 shares of $6 dividend preferred stock
general
(no
par).
The
corporate purposes. Underwriter—George A. Searight,
company does not intend presently to sell
more stock than is
New York City.
required to raise, at most, $2,700,000.
Price
$100 per share. Proceeds
For
•
construction,
Long Island Lighting Co. (9/26)'
working capital, reserve, etc. Underwriter—None.
April 5 filed 120,000 shares of cumulative preferred stock, .
Minerals, Inc., New York (9/10)
series G (par $100) (on Aug. 29 company announced it?
June 22 filed
2,500,000 shares pf common stock (par
now plans issuance of 180,000 shares :of cumulative con¬
one cent).
Price—$1.50 per share. Proceeds—To acquire
vertible preferred stock, to be first offered for subscrip¬
for $2,400,000 the Chavin
tion by common stockholders of record Sept. 25, 1956, at
lead-zinc-copper-silver mine
located in South Central
Peru, and for general corporate
rate of one preferred share for each 28 shares of common
purposes.
Underwriter
Gearhart & Otis, Inc., New
stock held); rights to expire on Oct..10. Price — At par
> York.
Kpt
Vv /
■%;;/'. -:
\'..
($100 per-share). Proceeds—To repay bank loans. Un¬
Mission Appliance Corp. of
derwriters—Blyth & Co., Inc., The ; First Boston Corp.
Mississippi
and W. C. Langley & Co., all of New York.
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common
stock (par
Los Angeles Airways, Inc., Los Angeles, Calif.
$5) to be offered in units of one preferred and four com¬
April 23 (letter of notification) 645 shares of common
mon shares.
Price—$40 per unit. Proceeds
For pur¬
stock (par $10). Price — $54 per share. Proceeds — To
chase of machinery and
equipment. Office—New Albany,
Clarence M. Belinn, the selling stockholder. Office—5901
Miss. Underwriter—Lewis &
Co., Jackson, Miss.
West Imperial Highway, Los Angeles 49, Calif. Under¬
Mitee Bighorn Co.
:/
'• .V
writer—Dean Witter & Co., Los Angeles, Calif.
v
Aug. 24 (letter of notification) 3,000 shares of class B
Lost Canyon Uranium & Oil Co.
cbmmon stock (no par). Price—$25
per share. Proceeds
Oct. 6 (letter of notification) 3,000,000 shares of non¬
—For mining expenses.
Office — 550 Cookman
Ave.,
assessable capital stock (par one cent). Price—10 cent#
Asbury Park, N. J. Underwriter—None.
per share.
Proceeds—For expenses incident to minin|
Modern Pioneers' Life Insurance Cooperations/ Office — Simms Bldg., Albuquerque, N. M
May 24 (letter of notification) $300,000 of trust fund cer¬
Underwriter—Mid-America Securities Inc. of Utah, Salt
tificates. Price—At par ($2 per
unit). Proceeds
To
Lake City, Utah.
provide capital and surplus funds for the activation of
this insurance company.
Lumberman's Investment & Mortgage Co.
Underwriter—Arizona Mutual
Benefit Insurance Co., Phoenix, Ariz.
May 2 filed 50,000 shares of common stock (par $10);
Price—$12 per share. Proceeds—For working capital and
Mohawk Silica Co.,
Cincinnati, Ohio
general corporate purposes.
Office — Denver, Colo.
March 23
(letter of notification) 3,000 shares of 8%
Underwriter—None.
cumulative convertible preferred stock
(par $50) and
3,000 shares of common stock (no par) to be offered in
Lynch Carrier Systems, Inc. (9/13-14)
units of one share of preferred and one share
Aug. 20 filed $225,000 of 6% sinking fund debentures,
of common.
Price
series B (with capital stock purchase warrants attached),
$60 per unit.
Proceeds
For mining expenses
Lithium
June
1 Israel-Mediterranean Petroleum; Inc. (Panamai x
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are to be offered for public sale,18O,OO0 shares and certificates therefor are subject to:
options and 250,000 shares and certificates therefor are
to be offered for sale outside of the United States. Price
supplied
York.-/
1
& Trust
required by law. Underwriter—None.
be
construction
Business—Hydrides of calcium, lithium, potassium and
sodium, etc.
Underwriter—White, Weld & Co., New
,
reserves
Price—To
ceeds—For
-
Aug. 31 filed $2,100,000 of 4% notes due Nov. 1, 1971"
Co., Mullins, S. C.
and $1,400,000 of limited
partnership interests, to be
July 9 filed 1,800,000 shares of common stock (par $1),
offered in units of a $60,000 note and a capital contri-'
of which 1,200,000 shares are to be offered publicity
bution of $40,000.
Price—$100,000
per unit. Proceeds—
and 600,000 shares on exercise of options. Price—$2 per
For purchase price of
hotel; and for improvements, etc. /
share to public. Proceeds—^To be added to general op-.
/Underwriter—None.
erating funds to enable the company to maintain proper
Life
be
Sept. 25.
corporate
Underwriter—George
^ Lincoln Associates, New York
(9/12)
Aug. 23 filed 85,266 shares of
1
/
March 30 filed 100,000 shares of common stock
(par 10
cents). Price—To be supplied by amendment. Proceeds T
—For exploration and evaluation of leasehold
to be offered in units of
insurance
purchase 50,000 units of interest in the
be supplied by amendment.
Proceeds
—To selling stockholders.
Underwriter—Dillon, Read &
Price—To
Mascot Mines, Inc.
July 9 (letter of notfication) 280,000 shares of common
stock (par XlVz cents). Price—25 cents
per share.
Pro¬
com- /
other
to certain persons in certain
decided upon.. Price—$2 per share.
Aug. 9 (letter of notification) 100,000 shares of common
stock" (par 50 cents). Price—$2 per share.
Proceeds—
For general corporate purposes. Business—Manufactures
Investment
warrants to
Trust.
v
★ Mecca Uranium & Oil Corp.
'
July 30 (letter of notification) 250,000 shares of non¬
be /
assessable common stock (par one
mill). Price—$1 per
Proceeds—For ex- ;
share. Proceeds
For
accruals, tunnel equipment and
ploration and development and to purchase additional
drilling, etc. Underwriter—None.
stock of its subsidiary, leadville Explorations, Inc. Office
;
Metal Hydrides, Inc.,'*
—308 Colorado
stock
"
,
* Marine Petroleum Trust, Dallas, Texas (9/18)'
Aug. 30 filed 450,000 of units of interest in the Trust
Proceeds
Leadville Lead & Uranium Corp.
July 17 (letter of notification) 150,000 shares of
.
York.
International Shipbuilding Corp.
1,540,000 shares of
stock. Price—At par (one cent per
—For working capital. Business—Sales
mon
Capital Funding Corp., the selling stockholder. Under¬
writer—Berry & Co., Newarlraiid~Plainfield, N. J. „
K Co.
Inc., New York.
w
Temple St., Salt Lake City, Utah. Underwriter—Mel vin
Laundrimation, Inc.
G. Flegal & Co., Salt Lake City, Utah.
-y-yt Aug. 10 (letter of notification)
31
21
Developments, Inc., Cleveland/ Ohio
filed
,
—
-i-To be the
market price on the American Stocte*ExProceeds — For carrying out the exploratory,
drilling and development of presently licensed acreage,
operations and expenses of the company, and acquisition,
exploration' and development of additional acreage. Un¬
change.
derwriter—H. Kook &
Co., Inc., New York.
Isthmus Steamship & Salvage Co., Jnc.
May 4 (letter of notification) 100,000 shares of
*
T
-
.
—
common
stock
(par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equipment.
Office—1214 Ainsley Bldg., Miami, Fla. Under--
•
writer—Foster-Mann, Inc., New York, N. Y.
-
—
4.
"
Joa Co.
—
July 27 (ietter of notification) 110,000 shares of common
(par 20 cents). Price—$2.50 per share. Proceeds'
—For sales promotions and
operating capital. Office—■
stock
.
411- No. Scenic
—Anderson
Highway, Lake Wales, Fla. Underwriter
Co., Inc., Palm Beach, Fla.
Cook
•
Johnson-Carper Furniture Co., Inc. (9/7)
Aug. 22 (letter of notification) 27.000 shares of common
-stock (par $5) to be offered for subscription by stock¬
holders.
Price—$10 per share. ' Proceeds—to repay bank
loans and for working capital.
Office—Riley Road, N. E.,
Roanoke, Va. Underwriters—Mason-Hagspi, Inc., Roan¬
oke, Va.; and Strader, Taylor & Co., Inc., Lynchburg, Va.
Jurassic Minerals,
-
Inc., Cortez, Colo.
(letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident tb /mining
Aug. 26
activities.
Colo.
Office
—
Underwriter
West Montezuma St., "Cortez,
Bay Securities Corp., New York,
326
—
—
,
1
due Sept. 1, 1971, and
!
Kay Jewelry Stores, Inc. (9/J.3)
Aug. 24 filed 150,000 shares of capital stock (par $1).
Price—To be supplied
by amendment.
Proceeds—To
reduce
bank
chain.
loans.
Business
Underwriter—Lazard
—
Retail
Freres
&
credit
Co.,
jewelry
New York.
Kentucky Harness Racing Association, Inc.
r Aug; 17 (letter of notification) $37,000 principal amount
of
6%
10-year cumulative income debentures and 3,700
common stock
(par one cent) to be offered in
one $1,000 debenture and 100 shares of common.
Price—$1,001 per unit. Proceeds—For construction costs.
shares of
units of
Address—Versailles, Ky.
Kerr Income Fund,
Underwriter—None.
Inc., Los Angeles, Calif.
"
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be initially sold at $10.98 per
share.
Additional shares will be offered at
price equal
to the net asset value of the Fund, plus a sales load of
8%% of such price. Proceeds—For investment. Invest¬
ment Manager — California Fund Investment
Co., of
a
which John Kerr is also President.
.
Knox Corp., Thomson, Ga.
20 filed 150.000 shares of
"June
A
common
stock
(par $1). Price—To be supplied by amendment (expect¬
share). Proceeds—To pay loans from banks
and factors; and for working capital and other
corporate
purposes. Business—Prefabricated homes, house trailers
and lumber. Underwriter—Ira
Haupt & Co., New York.
Kropp Forge Co.
June 4 (letter of notification) 18.804 shares of common
.stock (par 33% cents). Price—At market (estimated at
$3.50 per share). Proceeds — To selling stockholder.
Underwriter—Sincere & Co., Chicago, 111.
.
52,500 shares of capital stock (par
$1), of which 12,500 shares are to be sold for the account
of the company and 40,000 shares for the account of
Frank W. Lynch, former President.
(Each $500 of de¬
bentures will have attached thereto warrants to purchase
40
shares of stock
initially at $7
per
share).
Price—To
be
supplied by amendment. Proceeds—For research and
development expenses and working capital. Office—San
Francisco, Calif.
New
York.'-'
Underwriter—P. W. Brooks & Co., Inc.,
':'
Macimiento
■.
'/v/
Uranium
Mining Corp.
July 31 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—20 cents per share.
Proceeds—For current liabilities, exploration, adminis¬
trative expenses and working capital.
Office — Kimo
Bldg., Albuquerque, N. M. Underwriter—Carroll & Co.,
Denver, Colo.
\ "
■'. =•
'
/•
Macinar, Inc.
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For general corporate purposes. Business — Manufac¬
tures
class
ed at $4 per
f
,
'
—
New York.
;
<
steel
writer—C.
York
and
J.
aluminum
Montague,
specialty products. Under¬
Inc., 15 William Street, New
17, N. Y.
Mammoth
Milling & Uranium Co., Inc.
May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share). Proceeds—
For mining expenses.
Office—205 Carlson Bldg., Pocatello, Idaho. Underwriter—Columbia Securities Co., Inc.
of California, Beverly Hills, Calif.
Manufacturers' Bank of Edgewater
(N. J.)
Aug. 24 (letter of notification) 1,250 shares of common
stock (par $10).
Price — $80 per share. Proceeds—To
—
and
processing silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio. Underwriter—None.
Mormon Trail
Feb. 9
stock
Mining Corp., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223
Phillips Petrol¬
eum
Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas. Nev.
V
National
June
stock
By-Products, Inc.
(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceeds—To pay
19
Federal
estate
taxes.
Des Moines, Iowa.
Inc., Des Moines,
Office—800
Bankers
Trust
Bldg.,
Underwriter—T. C. Henderson & Co.,
Iowa.
-A- National Exploration, Inc.
Aug. 24 (letter of notification) 900 shares of class B
stock and 1,800 shares of class C stock.
Price—At par
$50 per share). Proceeds—For mining expenses. Office
—940
South
Melrose
St.,
Casper, Wyo.
Underwriter—
None.
National
Lithium
Corp.,
Denver, Colo.
Dec. 27 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share.
Proceeds—
For mining expenses. Office — 556 Denver Club
Denver, Colo.
same city.
Underwriter
—
Bldg.,
Co.,
Investment Service
National
Metallizing u*p.
(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Class B stock (par
March 5
stock
$1) to be offered for subscription by Class A and Class
B stockholders of record Feb. 1, 1956 on a l-for-4 basis.
Continued
on
page
32
32
The Commercial and Financial Chronicle
(1004)
Continued from page
(letter of notification) 2,000,000 shares of common
stock (par five cents). Price—15 cents per share. Pro¬
ceeds—For exploration and development and other gen¬
eral corporate purposes. Underwriter—Philip Gordon A
Co., New York.
Nov. 8
$2 per share, Prvacuum metallizing,
conditioiitiig, slitting and inspection machinery. Office—
1145-19th St., N. W., Washington, D. C. Underwriter—
Price
None.
National
Musitime Corp.
Ocean
(9/17)
general corporate pur¬
poses. Office—730 Fifth Avenue, New York. Business—
.Background music business. Underwriters—M. J. Heiter
Co., New York; Shelley Roberts & Co., Denver, Colo.;
and General Investing Corp., New York.
loan
repay
and
for
filed
15
50,000
shares of class
Birmingham, Ala.
National Pool Equipment Co.,
,*
.
National Sugar Refining Co.
(9/14)
:
;
,
—100%
term
* %
;
accrued
and
to
interest. / Proceeds-r-To pay short
buy equipment., Office—1345 Miami
future.
near
'
-
f'
:
Aug. 22 filed $70,000,000 of debentures due Sept. 1, 1981. '
Price—To be supplied by amendment.
Proceeds—For
expansion program and for retirement of short-term '
borrowings. Underwriter—Goldman, Sachs & Co., New '
York.
*
'
;
,
.
industries.
Procter & Gamble Co. (9/13)
,
(Calif.)
April 10 filed $25,000,000 of debentures due 1971. Price
-rTo be supplied by amendment. Proceeds—For reduc¬
Underwriters—Blyth
and
note
expected in
Pacific Finance Corp.
loans.
held
Price—To be sup-
St., Toledo, Ohio. Underwriter—Baker, Simonds & Co.,
Offering—Being postponed. Larger deal
Philadelphia, Pa. Underwriter—Walnut Securities Corp.,
tion of short-term bank
stock
new
stock
Detroit, Mich.
*
it Oxford Loan Co., Philadelphia, Pa.
(letter of notification) $250,000 of 6% 10-year
renewable debentures due Sept. 20, 1966. Proceeds—To
increase loan volume.
Office—2233 North Broad St.,
j
Sept. 26.
on
of
common
Corp.
■
• >//..■;.*;
•
July 3 (letter of notification) $300,000 of 6% convertible
sinking fund debentures due July 1, 1971 to be issued
in denominations of $20 or any
multiple thereof. Price
Sept. 4
Philadelphia, Pa.
shares
or
Prestole
share.
V a
two
A
the aggregate
processing and mining
Underwriter—Bache & Co., New York.
J
^Boad/Jfc E. Atlanta, 'Ga. .Underwriter—None;.' '
pools and related equipment. Underwriters—Mid-South
Securities Co. and Clark, Landstreet & Kirkpatrick, Inc.,
Tenn.
per
of
class
of
for
Proceeds—For raw material, equipment,
plant construction, etc. Office — 1920 Cheshire Bridge
—$3
basis
plied by amendment. Proceeds—To retire all outstanding class A shares and about $1,500,000 outstanding de¬
bentures; also for working capital. Business—Supplies
for
maintenance-of-way and mechanical fields; also
equipment for the highway construction industry and
ic One In All Corp.*
Aug. 7 (letter of notification) 13,150 shares of class B
non-voting dividend participating common stock. Price
Aug. 23 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
machinery and equipment for a new plant which is
being erected for the company in Florence, Ala.; to
retire bank loans and for working capital.
BusinessManufactures and sells component parts of swimming
both of Nashville,
'
shares
Sept. 12; rights to expire
for
673 shares.
(par $2) and 50,000 shares of class
(par $2). Price—To be supplied by amendment. Pro¬
ceeds •—• To selling stockholders. Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp., Nash¬
'
subscribe
the
on
five
each
for
rights to expire on Sept. 11. Price—
Murphy Corp., owner of 658,328 shares,
109,722 shares. Proceeds—For gen¬
eral corporate purposes. Office—New Orleans, La. Un¬
derwriters—Morgan Stanley & Co., New York, and
Reinholdt & Gardner, St. Louis, Mo. for remaining 98,-
A common stock
B common stock
ville, Tenn., and New York, N. Y. Offering—Indefinitely
postponed,
v-i;,v
stockholders
Drilling & Exploration Co.
$20 per share.
will
%
.
of Aug. 28, 1956;
as
National Old Line Insurance Co.
Nov.
• Poor &
Co., Chicago, III. (9/13)
Aug. 23 filed 213,175 shares of common stock (par $10)
to be offered for subscription by class A and common
Aug. 8 filed 208,395 shares of common stock (par $1) being~ offered for subscription by common stockholders
at the rate of one new share for each six shares held
7 (letter of notification) 393,000 shares of common
stock (par one cent).
Price—75 cents per- share. Pro¬
Aug
ceeds—To
Reading, Pa. Underwriter—A. G. Edwards & Sons, St,
Louis, Mo., and New York, N. Y.
Oak Mineral & Oil Corp., Farmington, N. M.
31
Thursday, September 6,1956
...
Prudential
Federal
'*yi- p
Uranium Corp.
March 21 (letter of notification) 6.000.000 shares of
&
mon
stock (par two cents).
Proceeds—For mining expenses.
Securities, Inc., Denver 2, Colo.
Offering—Indefi-
.
com¬
Price—Five cents per share.
Aug. 24 filed 94,803 shares of capital stock (no par) to
offered for subscription by stockholders of record
Co., Inc., and Hornblower & Weeks.
nitely postponed.
Sept. 13 at the rate of one new share for each six shares
held; rights to expire on Oct. 1. Price—To be supplied
by amendment.
Proceeds — For working capital and
other corporate purposes. Underwriter—Morgan Stanley
Aug. 24 (letter of notification) an undetermined number
of shares of common stock (par $6.50) to be offered to
July
employees. Price—To be supplied by amendment. Pro-j|
ceeds
For construction, improvement or extension of
company's facilities. Office—920 S. W. Sixth Ave., Port¬
stock (par $1). Price—100% of principal amount
for debentures and $1.75 per share for the stock.
Pro¬
be
&
Co., New York.
England Telephone & Telegraph Co.
Aug. 3 filed 613,010 shares of capital stock being offered
for subscription by stockholders at the rate of one. new
share for each five shares held as of Aug. 29; with
rights to expire on Sept. 28.
American Telephone &
Telegraph Co. owns 69.26% (2,122,842 shares) of out¬
standing stock. Price—At par ($100 per share). Proceeds
Underwriter—None.
temporary borrowings.
"
Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3% cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — 345 South
State St.f Salt Lake City, Utah. Underwriter—Birkenmayer & Co., Denver, Colo.
?
—
Nortex Oil
„
& Gas
land, Ore.
•
Underwriter—None.
.
.
repay
tion.
~
15
days
—
To
$15,000,000
,
(no
par) to be offered to present stockho^
Price—$8 per share. Proceeds—For oil and gas drilling
•j
expenses.
Buffalo 2,
Office—606 Root Bldg.,
N. Y.
84 W.
Underwriter—None.
Chippewa St..
shares
are to be
reserved on exercise of options to be
granted to employees of company. Price—To public, $2
per share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance com¬
be known as the "Reinsurance Company of the
South"; the remainder will be used for other corporate
purposes. Underwriter—Luna, Matthews & Waites.
(par 10 cents).
★ Pioneer Finance Co.
,
Aug. 9 (letter of notification) 75,000 shares of common
stock (par $1) to be offered to stockholders on a basis
of
one
share.
share for each 6%
Proceeds
National
Bank
shares held.
Price—$3.25 per
For working capital. Office — 1400
—
Bldg., Detroit 26, Mich.
Underwriter—»
None.
•
'
Republic Cement Corp.,
,
^ Policy Advancing Corp., Binghamton, N. Y*
Aug. 31 (letter of notification) $240,000 of 6% subordi¬
nated convertible debentures due
subscription by
.
,
.
,
stockholders at rate of $10 of
...
.
■
.
held (with an oversubscripPrice—At par. Proceeds—To retire outcommon
.
,
debentures for each share
tion
1966 to be offered for
,
.,
,
.
privilege).
standing
$16^00 6% ^debentures due 1960 and for working capital. Office—27 Chenango St., Binghamton, N. Y.
•
Polvmer Corp.
(9/12-13)
Aug. 24 (letter of notification) 41,300 shares of class A
common stock
(par $1). Price—$7.25 per share. Pro¬
ceeds—To reduce bank loans, purchase of machinery
and working capital.
Office—2120 Fairmont Avenue,
Prescott,
capital and general corporate purposes.
Vickers Brothers, New York,
v
Ariz.
(9/10)'
April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant,
working
Underwriter—
® Royal Registe) Co., Inc.
Aug. 9 (letter of notification)
common
stock
15,000 shares of class A
(par $1) being offered initially to class A
stockholders at rate of 1V2
rights to expire
ceeds—To
r
common
30
Reinsurance Investment Corp., Birmingham, Ala«
May 25 filed 2,985,000 shares of common stock, of which
2,485,000 shares are to be offered to public and 500,000
(letter of notification) 80,000 shares of common
Price—$2.25 per share.' Proceeds
working capital. Office — Hicksville, L. I., N. Y.
Underwriter—P. J. Gruber & Co., Inc., New York.
'•'!
stock
Underwriter—None.
Corp., Buffalo, N. Y.
July 11 (letter of notification) 5,586 shares of
stock
/. i;?-
—For
(Minn.)
NYPA Gas
'7?V7:;'
.
cumulative
Aug. 6
first
Barney & Co.; Lehman
Brothers and Riter & Co.
(jointly); and Glore, Forgan
& Co.
Bids—Expected to be received up to 10 am.
<CDT) on Sept. 12 at Room 1100, 231 So. La Salle St.,
Chicago 4, 111.
aggregate
expenses.
pany to
Underwriters—R. S. '•
C. and McCarley &
The First Boston Corp. (jointly); Merrill
Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and
White, Weld
& Co. (jointly); Equitable Securities
Corp. and Union
Securities Corp. (jointly); Smith,
an
Co., Clarksville, Texas
(letter of notification) 100,000 shares of 6%
preferred stock (par $2) and 100,000 shares
of common stock (par 10 cents) to be offered in units of
one share of each class of stock.
Price—$2.25 per unit.
Proceeds—To retire debt and for working capital. Un¬
derwriter—Franklin Securities Co., Dallas, Texas.
July
Perfect-Line Manufacturing Corp.
Offering—Expected moment¬
of
amount of $42,500.
Office—Bryant Bldg.,
Underwriter—Shaiman & Co., Denver.
mining
Red Fish Boat
+ Peabody Coal Co. (9/26)
Sept. 4 filed $35,000,000 of sinking fund debentures due
1976. Price—To be supplied by amendment. Proceeds—
For retirement of certain outstanding funded debt (ap¬
proximately $28,000,000) and for general corporate pur¬
poses. Underwriter—The First Boston Corp.,,New York.
—
Northern States Power Co.
Colo.
Avenue, New York 17, N. Y. Un¬
& Co., 40 East 54th Street,
New York 22, N. Y.
(9/12)
mortgage bonds due
1986.
Proceeds—For repayment of bank loans and for
additions and improvements to property. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
.
solcjl at the
market will bring in
;
derwriter—Wistor R. Smith
Telephone Co. of the Carolinas, Inc.; to reduce short
tetm indebtedness; for construction and modernization-
July 26 filed
June 14 (letter of notification) an undetermined number
of shares of common stock which when
.
Office—527 Madison
To acquire physical properties and franchises of the
Norwood and Marshville (N. C.) exchanges of the United
Co., Inc., Ashville, N. C.
arily.
va¬
Montrose, Colo.
following effective date of registration.
supplied by amendment. Proceeds
program; and for working capital.
Dickson & Co., Inc., Charlotte, N.
Underwriter—H. Kook &
*
nadium Hill Uranium, Inc., Montrose, Colo.
Equipment Corp.
(letter of notification) 60,000 shares of com¬
mon stock (par $1).
Price—$5 per share. Proceeds—For
construction of 250 race ticket machines; for purchase
of 40 machines for issuance of semi-blank race tickets;:
and for working capital and general corporate purposes.
Telephone Co.
be
writer—None.
Price-
Pari-Mutuel
July 24 filed 828,572 shares of
Price
Minerals, Inc., Reno, Nev.
it Radiore Mining & Exploration Co.
Aug. 15 (letter of notification) 490,000 shares of common
stock.
Price—At par (10 cents per
share). Proceeds—
For mining expenses.
Address—Blackfoot, Idaho. Under¬
Aug. 24
♦
common stock (par $1) to
be offered for subscription by common stockholders at
the rate of two shares for each share held; rights to ex¬
P.
Proceeds—For
Co., Inc., New York.
Finance
Ariz.
and
Underwriter—Utility Investments, Inc., Reno, Nev.
oil and gas acreage in Israel.
Co., Phoenix, Ariz.
^
July 9 filed 500,000 shares of class B non-voting common
atock (par $1). Price—$3 per share. Proceeds—To ex¬
pand business operations. Underwriter—None, sales are
to be made by Eugene M. Rosenson, President, of Pheotiix, and Marcus T. Baumann, Vice-President and Treas¬
pire
R.
Feb. 14 (letter of notification) 500,000 shares of comrnos
Price—At par (10 cents per share).
Proceeds—
For mining expenses.
Office—573 Mill St., Reno, Nov.
stock.
To be the market price on the American Stock Exchange.
Proceeds—For exploration, drilling and development of
.
Morth Carolina
,
Pyramid Development Corp., Washington, D. C.
July 27 (letter of notification) 300,000 shares of common
stock (pap 10 cents)^ of which 25,000 shares are to be
reserved for issuance upon exercise of options.
Price—
$1 per sha?6. Proceeds—To purchase real property and
mortgage notes. Underwriter—Coombs & Co. of Wash¬
ington, D. C.
-{*
Inc. (Panama)
•
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent); of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 25,000 shares and certificates therefor are to
,1 -North American Aviation, Inc. (9/10)
v :
Aug. 6 filed 1,145,011 shares of capital stock (par $1),
to be offered for subscription by stockholders of record
Sept. 7," 1956 at the rate of one new share for each six
.shares held; rights to expire on Sept. 24. Price—To be
.supplied by amendment. Proceeds—For capital expend¬
itures, Underwriter—Morgan Stanley & Co., New York.
urer, of Tucson,
Juan, Porto Rico. Underwriters—Crerie &
Co., Houston, Texas; and Dixon Bretscher Noonan, Inc.,
Springfield, 111.
•
; '
Pan-Israel Oil Co.,
be offered for sale outside of the United States.
American
ceeds—For construction of fronton and related activities.
Corjp.
amendment. Proceeds—To pay note due Feb. 1, 1957; for
drilling and development costs; and working capital.
Office—Dallas, Texas. Underwriter—J. R. Williston &
Co., New York.
'a
12-year 6% first mort¬
1968, and 220,000 shares * of
Office—San
,
Price—At par ($100 per share). Proceeds—
temporary borrowings and for new construc¬
Underwriter—None.
of
common
Telephone & Telegraph Co.
July 27 filed 1,562,267 shares of common stock being of¬
fered for subscription by common and preferred stock¬
holders of record Aug. 29, 1956 in the ratio et one share
for each six shares (common and/or preferred stock);
held; rights to expire on Sept. 28. American Telephone
& Telegraph Co., the parent, owns 90.70% of the out¬
standing common stcck and 78.17% of the preferred
stock, and intends to purchase X,399,824 shares of the
new stock which represents its pro rata portion of
the
offering.
27 filed $1,100,000
bonds due July 1,
gage
Pacific
To
Underwriter—Skyline
Puerto Rico Jai Alai, Inc.
it Pacific Power & Light Co.
(9/17-21)
Aug. 24 filed 100,000 shares of $1.20 cumulative convert¬
ible preferred stock (par $1). Price—To be supplied by
North
"
—
New
—To repay
c
for
on
shares
Sept. 15,
for
each
Price—$15
per
share
held;
share. Pro¬
reduce
outstanding debt, buy equipment and
working capital. Office—Simon Street, Nashua, N. H.
Underwriter—None.
Samson
Uranium, Inc., Denver, Colo.
Au£- 21 (letter of notification) 25,000,000
tal stock.
—For
shares of capi(10 cents per share)
Proceeds
including geological research and
Price—At par
core
drilling,
core assays; for mining shaft; to exercise purchase of
option agreement on additional properties; for
working
capital
Indiana
and
other
corporate
purposes.
Underwriter
State Securities
Corp. of Indianapolis, Ind., for
offering to residents of Indiana.
Scripto,
Inc., Atlanta, Ga.
(9/12)
Aug. 15. filed 3«o 000 «h*res of class A common
stock (par
50 cents), of which 40,000 shares are to be
offered to of-
Volume
184
'Number 5566
The Commercial and Financial Chronicle
.,
.
ficers and employees.
Price—To public, $7 per share; to
employees *,$6.67^ per share.V Proceeds —To reduce
bank loans, and for expansion and working
capital.
Aug. 15 filed 360,000 shares of class A common stock (par
Underwriter—Johnson, Lane,
vannah, Ga.
J V' '; yy//
Space
&
Co.,
Inc.,
fice—909
I*,,
Sa¬
July 17 (letter of notification) 200,000 shares of common
(par $1). Price—$1.50 per share. Proceeds—For
expansion program. Office—323 So. State St., Salt Lake
City, Utah. Underwriter—Whitney & Co., also of Salt
Lake City.
yy./:V;
sun
Co
oil
Philadelphia
^
mon
stock
Price
—
stockholders.
At the market.
Proceeds
10
To selling
—
Stone
—
&
Webster
and
Stone
&
—
Francisco, Calif.
Southern Nevada Power Co. (9/18)
Aug. 10 filed $4,000,000 of first mortgage bonds, series
C, due 1986. Proceeds — To repay bank loans and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
William R. Staats & Co. and Hornblower &
& Co. Inc.;
Weeks
(jointly); White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Beane. Bids—Tentatively expected to
be received up to noon (EDT) on Sept. 18 at First
National City Bank of New York, 2 Wall St^New.York,
N. Y.
KW
i
t
Southern), Union Oils? Ltd., Toronto, Canada
Aug. 24 filed 750,000 shares of capital stock (par $1).
Price—64 ^ cents per share. Proceeds—To selling stock¬
holders.
Underwriter—None.
.
i
...
stock
common
(par
10 cents) to be offered for subscription by
Price—$10 per share. Proceeds—For ex¬
penses incident to development of oil and gas properties.
stockholders.
Office—801 Washington Bldg.,
writer—None.
Washington, D. C. Under-
Thermoray Corp.
29 (letter of notification)
380,000 shares of
June
Togor Publications, Inc., New York
(letter of notification) 299,700 shares of
March 16
(letter of notification) 120 shares of common
par
($2,500 per share). Office—9232
S. E. Bush St.,
Portland, -Ore. Underwriter—Norte.
Price—At
Ulrich Manufacturing
Co., Roanoke, III.
Aug. 20 filed 50,000 shares of class A common stock (par
$1). Price—$6.50 per share. Proceeds—To reduce bank
—Allen
Indianapolis, Ind.
July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents and
employees of Automobile
Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
ers
at
the State Automobile Insurance Association."
Price—Proposed maximum is $7.50
per
share.
....
&
be
supplied
selling stockholders.
.
Statesman Insurance Co.,
working capital. Business—Earthmoving
Underwriter—White & Co., St. Louis,
Materials Corp.
May 25 filed 200,000 shares of common stock
Proceeds
—To obtain
a certificate of
authority from the Insurance
Commissioner of the State of Indiana to
begin business.
Underwriter—None.
&
by
amendment.
Office—Chicago, 111.
(par $10).
Proceeds—To
Underwriters
Co., Bache & Co. and Reynolds & Co., Inc.,
Offering—Postponed indefinitely.
Union of Texas Oil
19
Co., Houston, Texas
(letter of notification) 240,000 shares of
common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production.
Office — SaD
Jacinto
Building, Houston. Tex
Co., Houston, Texas.
Underwriter—Mlckle &
Offering—Put off indefinitely.
Sterling Precision Corp., New York,
July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
and series B-preferred
stocpk in the ratio of one share
of new preferred -stock for each four shares of series A
series B preferred stock and one share of new
pre¬
ferred for each 10 shares of common stock held. Price—
At par ($10 per share). Proceeds—To
or
repay a $1,400,000
note held
by Equity General, Corp., a subsidiary of
Equity Corp.; to liquidate existing bank loans and for
general corporate purposes. < Underwriter—None,
but
Equity General Corp. has agreed to purchase at par,
plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares
(3.23%) of Sterling com¬
mon stock, plus $1,800,000 of its convertible debentures.
Stevens (J. P.) & Co., Inc., New York
June 28 filed $30,000,000 of debentures due July
1, 1981.
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term loans, to retire $950,000 of 4%% first
mortgage bonds and $368,679 of 6%
preferred stock of
subsidiaries.
York.
Underwriter—Goldman, Sachs & Co., New
Offering—Indefinitely postponed.
Strategic Metals,
Jan. 4
Inc.,
Tungstonia, Nevada
tive
2,160 shares of
,
Developers, Inc., Spokane, Wash.
(letter of notification) 920 shares of 6% cumula¬
non-voting
preferred
common
stock
($100
per
share)
and
stock
(par $10). Price-^-Of pre¬
of common, $15 per share
ferred, $100 per share; and
Proceeds—For improvements and working capital.
tion
of
stock
held; rights to expire on Oct. 2, 1956.
Price—To be supplied by amendment (but will not be
common
less than $100 per share). Proceeds «-% To repay bank
loans, for equipment, working capital and general cor¬
porate purposes. Underwriter—Harriman Ripley & Co.
Inc., New York.
v,j..
* United Cuban Oil,
Of¬
Inc.,
Los
Angeles, Calif.
(9/20-27)
.
gram
.
and
Creditor
Single
.
Systematic
Life
Co., New York.
United States
July
Mining & Milling Corp.
notification) 300,000 shares
of com¬
Price—$1 per share. Proceeds
exploration and drilling costs and for working
capital. Underwriter—N. R. Real & Co., Jersey City, N. J.
mon
16
(letter of
stock (par one cent).
—For
if Universal Finance Corp.
Aug. 24 (letter of notification) 27,272 shares of 70-cents
common.
capital.
stock (par $5) and 13,636 shares of
(par 15 cents) to be offered in units con¬
stock
sisting of
share of preferred and one-half share of
Price—$11 per unit. Proceeds—For working
one
Office
—
Gibraltar
Life
Bldg.,
Dallas,
Tex.
Underwriters—Muir Investment Co., and Texas National
Universal
Fuel
&
Chemical
Group
and $2,000,000 of
Program.
Office—Boston,
Walt
Disney Productions, Burbank, Calif.
24
filed
$7,500,000
of
convertible
(9/19)'
subordinated
debentures due Sept. 1,
1976. Price—To be supplied by
Proceeds—$243,740 to redeem outstanding
debentures, series A, due 1960; balance for retire¬
amendment.
ment
of
secured
demand
note.
Underwriter—Kidder,
Peabody & Co., New York.
if Washington Water Power Co. 'yv\/.y\.'
/
?
Aug. 27 (letter of notification) an undetermined number
of shares of common stock (no par) to be offered to
employees. Price—To be supplied by amendment. Pro¬
ceeds
For
—
Office—West
payment
825
for
Trent
stock
Ave.,
on
the
Spokane,
open
market.
Wash.
Under¬
V- :■ y
writer—None. '-
if Welch Petroleum Corp.
(letter of notification)
stock.
a^d
63,595 shares of common
($1 per share). Proceeds—For oil
development operations.
Office—425 Fremont
Price—At par
gas
St., Las Vegas, Nev. Underwriter—None.
Western
Securities
Corp. of New Mexico
Feb;813 (letter of notification) 50,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds—To start
dealer or brokerage business.
Office—921 Sims Bldg^
Albuquerque, N. M. Underwriter—None.
y y.'-■
a
if Western States Natural Gas Co.
Aug. 24 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For development of oil and gas.
Office—Felt Bldg.,
Lake
City, Utah.
Underwriter—Us-Can Securities,
Wheland Co., Chattanooga, Tenn.
May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common
the company's account and 61,00© shares for a selling
stockholder.
Price
To be supplied by amendment.
Proceeds—Together with proceeds from private sale of
$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured 4%% notes to a group of banks, will
be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.: and Equitable Securities Corp., Nash¬
ville, Tenn.
Offering — Temporarily postponed. Not
expected until sometime this Fall.
—
White Sage
Uranium Corp.
(letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share). Proceed©
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
Feb. 13
Corp., both of San Antonio, Tex.
Corp.
May 17 (letter of notification) 300,000 shares of capital
Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc., Pittsburgh, Pa.
stock.
Program with
Protection,
Investment
Inc., Jersey City, N. J.
&
Investment
—
Wall Street Planning Corp., of which
Child, Jr., is Board Chairman.
; j
Salt
2,000,000 shares of common stock (par 10
Price—$1.25 per share. Proceeds—For develop¬
exploration costs. Underwriter—S. D. Fuller
_
Sponsor
Josiah H.
Aug. 29 filed
and
.
Insurance
Payment
Mass.
Aug.
.
cents).
ment
<
:
...
,
by common stockholders of record Sept. 17, 1956
the basis of one preference stock for each 16 shares
common
1,200,000 shares of com¬
mon
stock.
Price—25 cents per share.
Proceeds—For
expenses incident to mining operations.
Underwriter—
R. Reynolds & Co.. Salt Lake City, Utah.
Feb. 2
Corp. (9/18)
Aug. 28 filed not exceeding 330,915 shares of convertible
preference stock (par $100) to be offered for subscrip¬
cumulative preferred
(letter of notification)
Suburban Land
United Aircraft
on
;
Aug. 9
.
y~
Co., Inc., of Florida, Miami, Fla.
Inc.; Kuhn, Loeb & Co., American Securities Corp.
(jointly); Salomon Bros. & Hutzler;
Stone & Webster Securities Corp.;
White, Weld & Co.;
Union Securities Corp.
Bids—Expedted to be deceived
up to 11 a.m. (EDT) on Sept. 25 at140 Wall St.. New
York, N. Y.
K
•*.
?
h-*v
„
'
_•
'
★ Wall Street Investment Programs, Boston, Mass.
Aug. 31 filed $8,000,000 of Systematic Investment Pro¬
4%
all of New York.
Jan.
■.
& Co.
com¬
16
Price—To
Secu¬
yVr
and Wertheim & Co.
★ Totem Plywood Inc.
corporate purposes.
Underwriter—Southwestern
rities Co., Dallas, Texas.
'
Co>
;y-j ;y,.*,yy
■
stock (par 10 cents). Price—$1
per share.. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New
York, N. Y. Underwriter
—Federal Investment Co.,
Washington, D. C.
Union Chemical
'
Virginia Electric & Power Co. (9/25)
Aug. 17 filed $20,000,000 of first and refunding mortgage
bonds, series M, due Oct. 1, 1986. Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
com¬
mon
Mo.
inter¬
Underwriter—
Okla.
—Electrical heating. Office—26 Avenue
B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.
Southwestern Resources, Inc., Santa Fe, N. M.
filed 1,000,000 shares of common stock
(par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general
held; rights
accrued
Aug. 24 (letter of notification 100,000 shares of common
stock (par $1). Price—$3
per share.
Proceeds—For thesale of a hearing instrument
designed
for the hard-of-hearing. Office—1353 Mesita
Road, Colo¬
rado Springs, Colo.
Underwriter—Miller & Co., Tulsa.
(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
for
stock
and
manufacture and
stock
and
of
program.
-fcVicon, Inc.
Thomson Kernaghan & Co.,
Ltd., Toronto 1, Ont., Canada.
equipment, etc.
June 8
lumbia Securities
&
'
Calgary Co., Abilene, Texas
(letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For drilling for oil and gas
expenses.
Underwriter—
mon
expansion
if Venezuela Diamond Mines, Inc., Miami, Fla. ?
Aug. 31 filed 1,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For
exploration
and mining operations in Venezuela.
Underwriter—Co¬
Texas
loans
J,"
Weld
shares
24
Inc., Chicago, 111.
Underwriters—
Corp. and White,
' y
13
Price—100%
Industries, Inc., Evanston, III.;
(letter of notification) 7,000 shares of common
(par one cent). Price—-$7 per share. Proceeda-r-1
To selling stockholders.
Office — 2108 Jackson
Ave.*
Evanston, 111. Underwriter—Arthur M. Krensky &
June 29
stock.
notification) 15,001 shares of
program.
Securities
Co., both of New York.
Aug.
Southwestern Oklahoma Oil Co., Inc.
Feb. 27 (letter of
construction
19.
stock
—
for
Webster
each
Vance
yy y
notes
for
Sept.
on
Proceeds—For
Jan.
Securities
Underwriter—None.
(9/11)
debentures
Kidder, Peabody & Co., New York.
Corp., White, Weld & Co. and Halsey, Stuart & Co. Inc.,
Aug. 14 (letter of notification) 100,000 shares of cjmmon
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office — Corbett Bldg., Portland, Ore.
Aug. 21 filed 500,000 shares of common stock (par $25).
Price
To be supplied by amendment.
Proceeds — To
finance construction program. Underwriters—The First
Boston Corp., New York and Dean Witter &
Co., San
,
Underwriters
program.
★ Tennessee Gas Transmission Co. (9/18)
Aug., 29 filed 200,000 shares of cumulative convertible
second preferred stock (par
$100). Price—To be sup¬
plied by amendment. Proceeds
To repay short term
Southern California Edison Co.
\
f
Corp. of America
$10,000,000 of 4^4%. convertible deben¬
1976, being offered for subscription by
stockholders of record Sept. 5 at the rate of
$100
filed
to expire
(9/18)
Aug. 29 filed $50,000,000 of first mortgage pipeline bonds
due 1976. Price—To be supplied by amendment.
Pro¬
ceeds—To repay short term notes and for construction
all of New York.' " '
if Solar Corp.
14
common
of
Underwriter—
if Tennessee Gas Transmission Co.
y^yV
Underwriter—None.
Blvd., Los Angeles, Calif.
Vanadium
tures due Sept. 1,
est.
y
cents).
•
Aug.
;v' v::
None.
300,000 shares of com¬
mon stock.
Price—At par ,($1 per share).
Proceed*—
For mining expenses. Underwriter—Western States in¬
;
-
(letter of notification) 1,500 shares of common
stock (par $1) to be offered to
employees. Price—$12.50
per share.
Proceeds—For corporate purposes.
Office—r
(letter of notification)
Co., Tulsa, Okla.
of the offer by the
employees. Proceeds—For gen¬
working capital. Office—Latrobe, Pa. Underwriter
.—None. '
v
ance
eral
Aug. 20
1128 Crenshaw
Skiatron Electronics & Television Corp. •
March 16 filed 470,000 shares of common stock (par
if Vanadium Alloys Steel Co.
Aug. 30 (letter of notification) 5,378 shares of capital
stock (no par) to be offered to
employees. Price—At the
estimated market price on the day
preceding the accept¬
com¬
(par five cents),
'
vestment
Inc., Shreveport, La.
if Tel Autograph Corp.
,
^
Price — $5 per share. Proceeds — To organize a new
^ wholly-ownedjegal reserve life insurance company unV
der Louyiana ]aws; tlndefwrlter—Frank
Keith &-Co*
Price—20 cents per share.
expenses.
Office — 422 Paulsen
Bldg., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,
'.Wash.
,;jy• ;;
\
/ yy-
Shangrila Uranium Corp.
Dec. 30
■
Universal Investors, Inc., Shreveport, La.
■ - y
June 27 filed 300,000 shares of common stock
(no par).
Proceeds—For mining
(letter of notification) 300 shares of common
(no par). Price—$150 per share. Proceeds—For
mining expenses. Office—709-711 Fidelity Bldg., Spo¬
kane, Wash. Underwriter—None.
33
^
.
Pa
Target Uranium Corp., Spokane, Wash.
notification) 1,000,000 shares of
10
_
Under-
March 1 (letter of
stock
r
Ave., Spokane, Wash.
writer—None.
stock
if Senco, Inc.
Sprague
Anrii lb
18 filpd
229 300 snares
shares of
of common
common stock
April
filed AflMOU
stocK. Price—At
race—At
the market.
Proceeds—To selling stockholders. Under¬
V Security Loan & Finance Co.
Aug.
West
writer—W. T. Anderson & Co., Inc., Spokane, Wash.
}'yy:y':.y!V
.1';'
(1005)
Continued
on
page
34
34
The Commercial and Financial Chronicle
(1006)
Continued
,
from page 33
Wildcat Mountain Corp., Boston, Mass.
13 filed $800,000 of 6% subordinated cumulative
Aug.
(debentures due'Dec. 1, 1976, and
stock (no par) to be offered in
ture and
6,000 shares of common
units of a $400 deben¬
shares of stock. Price — $500 per unit.
construction and working capital. Busi¬
three
Proceeds—For
recreation
ness—Mountain
center.
Underwriter—None;
offering to be made by officers and agents of company.
.
Cincinnati, Ohio
(letter of notification) 20,666 shares of class B
common stock (par $1) to be offered for subscription by
class B common stockholders on a l-for-7 basin. Price—
Williamson Co.,
,
M
Feb. 20
$6.84
share.
per
Proceeds—For working capital. Office
Cincinnati, Ohio.
Underwriter—
petitive bidding. Probable bidders: Blyth & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Beane and Stone &
Webster Securities Corp. (jointly); Glore, Forgan & Co.;
The, First Boston Corp.; Lehman Brothers and Bear,
Stearns & Co. (jointly). Common stock will probably be
offered first for subscription by stockholders.
Bids—
Expected to be received on Oct. 23.
Registration —
Planned for Oct.
Central
V,,r
4.4 ;£• 44 444:'
Wilmington Country Club, Inc., Wilmington, Del.
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures). Proceeds
of
—For construction
a
golf house and other improve¬
Underwriter—None.
ments.
/
,
Wilson & Co., Inc. (9/19)
Aug. 28 filed $20,000,000 of 20-year sinking fund de¬
bentures
due
1976.
Proceeds
ment.
first mortgage
Price—To
—
To
supplied by amend¬
presently outstanding
be
redeem
bonds, to repay bank loans and for ex¬
pansion program. Business—Meat packing firm.
Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York City.
Wisconsin
Wood
Products, Inc.
June 25 filed 74,016 shares of common stock (par $5)
to be offered initially for sale to the present stock¬
holders. It is not expected that more than 42,500 shares
Will be sold immediately. Price—$10 per share;
Pro¬
ceeds—For lease of plant and purchase of equipment.
Office—Phillips, Wis. Underwriter—None.
Wyoming Oil & Gas Co.
July 9 (letter of notification) 200,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
For development of oil and gas properties.
Office—1529
South Forest St., Denver, Colo.
Underwriter—Wayne
Jewell Co., Denver,
graph "Co. in
be
Consolidated
Edison Co. of
New
Oct. 3.
Corp., Miami, Fla.
?
early registration is expected
of 150,060 shares of common stock. Price—Around $4.25
per share. Proceeds — For expansion program. Under¬
Regis¬
York, Inc.
it was announced that following proposed
merger with Panhandle Oil Corp., American Petrofina,
Inc., will offer to stockholders the opportunity to sub¬
scribe to about 1,000,000 shares of "A" stock of American
Petrofina. Price—$11 per snarfe. Underwriters—White,
Weld & Co.; Blyth & Co., Inc.; and Hemphill, Noyes &
Co. Offering—Expected in October.
30
in
December
$24,000,000 of first mortgage
bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Union Secu¬
rities Corp. and Kuhn, Loeb & Co. (jointly); The First
Boston Corp.; Harriman Ripley & Co., Inc.
Aug. 20 it
was reported Bank plans to offer to its stock¬
holders the right to subscribe for 75,000 additional shares
of capital stock (par $20)
on the basis of three new
shades for each 20 shares presently held. Price—$40 per
share.
Proceeds—To increase capital and
surplus. Office
Boulder
Acceptance Corp.,
bidders:
Expected to be received
Halsey,
Stuart &
on
Co.
Inc.;
Oct. 23.
Dodge & Co.
stalment loan
company; and for* 'Working capital and
general corporate purposes. Underwriter—Allen Invest¬
ment Co., Boulder, Colo. Stock to be sold in Colorado.
* Burndy Engineering Co., Inc.
Aug. 27 it
In
was
October
(Conn.)
reported company plans to issue and sell
some
common
stock.
Underwriter
—
Van
Alstyne, Noel & Co., New York.
.
California Electric Power Co.
(10/9)
July 16 it
000
of
was announced company plans to sell $8,000,*
first mortgage bonds.
Proceeds—For construc¬
tion program. Underwriter—To be determined
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Shields & Co.; Merrill Lynch, Pierce, Fenner &
Beane
and Kidder, Peabody & Co.
(jointly); Blyth &
Co., Inc.; The First Boston Corp. and Salomon Bros.
& Hutzler (jointly); Lehman
Brothers; White, Weld &
Co. Bids—Expected to be received on
Oct. 9.
Carolina
Power & Light Co.
(11/27)
March 22 it Was announced
company plans to issue and
sell $15,000,000 of first mortgage bonds due
1986. Under¬
writer—To be determined by
competitive bidding. Prob¬
Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc.
(jointly); W. C. Langlej
& Co. and The First Boston
Corp. (jointly); Equitable
Securities Corp.; Blyth & Co.,
Inc.; Kidder, Peabody &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly).
able bidders:
Bids—Scheduled for Nov. 27.
Central
Public Service Co. (10/23)
Atig. 13 it Was reported company plans to issue and sell
170,000 shares of common stock. Proceeds—For construc¬
tion program. Underwriter—To be determined
by
com¬
-
High Authority of the European Coal and Steel
Community, Luxembourg
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
Boston Corp. and Lazard Freres & Co. has bedn ap¬
4-
Aug. 13 it was reported company plans to raise about
$8,000,000 through the sale of preferred stock. Proceeds
—For
mines, coking plants, power plants and iron ore mines.
construction
^
„
.L*';
Underwriter—To
program.
«
be
de¬
by
comeptitive bidding.
Probable bidders:
White, Weld & Co. and Shields & Co. (jointly); Kidder,
Peabody & Co. and Harriman Ripley & Co.; Inc. (joint¬
ly); Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Leh¬
man Brothers; W. C.
Langley & Co. and Union Securities
Corp. (jointly); Blyth & Co., Inc., and The First Boston
Corp. (jointly). Offering — Not expected until early
1957.
Broadcasting Corp.
fcug. 10 it was announced that corporation, following is¬
suance
Dec.
on
2 to
stockholders
of
Allen
B.
Du
Mom
Laboratories, Inc. of 944,422 shares of common stock as
a dividend, contemplates that additional shares will
be
offered
&
to
its
stockholders. This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noe1
Co. handled
Du
Mont
Laboratories class A stock fi¬
nancing
on
some years ago.
Stockholders of Laboratories
Oct. 10 approved formation of Broadcasting firm.
Eternalite, Inc., New Orleans, La.
May 28 it was reported company plans to issue and sell
per
share.
Underwriter
Price
Vickers
—
—
Around
Brothers, New
York.
r
Fairchild
Camera
&
Instrument
Corp.
11, John H. Clough, President, announced that
working capital financing will be required in the near
future. Underwriter—Glore, Forgan & Co., New York.
June
Fansteel Metallurgical Corp.
Aug. 15 company announced stockholders will vote Oct.
3 on proposed issue and sale of
$3,000,000 subordinated
convertible debentures.
Proceeds—For expansion pro¬
gram. Underwriter—Hallgarten & Co., New York.
Flair Records Co.
Aug. 13 it was reported companv plans to issue and sell
resideiits of New York State 50,000 shares of common
to
stock.
Price:—$2
Inc., New York.
per
share.
Underwriter—Foster-Mann,
Food Fair Stores, Inc.
Aug. 28 stockholders voted
indebtedness from
crease
shares
Houston Texas Gas & Oil Corp.,
Feb. 29 it
the
to
Dillon &
to
increase
the
authorized
$35,000,000 to $60,000,000 and to in¬
authorized
stock
common
10,000,000 shares.
Co., New York.
from
Underwriter
Four Wheel Drive Auto Co.
444
—
4.:
5,000,000
Eastman,
41.;''
-4 \
*
4
Aug. 23 it was reported company plans to issue and sell
about $1,500,000 of 5% convertible debentures due 1971.
Underwriter?—A. C. Allyn & Co., Inc., Chicago, 111.
General Contract
(10/5)
-
Corp., St. Louis, Mo.
April 18 it
was announced that company plans $5,000,000
additional financing in near future? Proceeds—To go to
Securities Investment Co., a subsidiary. Underwriter—
General
Public
Utilities
*
Corp.
April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock. It is also pos¬
was
announced
an
Houston, Texas
application has been filed
with the FPC for permission to construct a 961 mile
pipeline system to cost $105,836,000. Hearing on this
project started on July 9. Underwriters—May be Blyth
Si Go., Inc., San Francisco, Calif.; and Scharff & Jones,
Inc., New Orleans, La.
Hudson
Pulp & Paper Corp.
was reported company
may in the Fall do
some public financing.
Proceeds—For expansion. Un¬
derwriter—Lee Higginson Corp., New York.
t
Mont
Du
G. H. Walker & Co.. St. Louis. Mo.
Illinois
•
pointed to study the possibility of a loan to be issued
oh the American market. The time, amount and terms
will depend on market conditions.
Proceeds — To be
loaned to firms in the Community for expansion of coal
.
V
Delaware Power & Light Co.
$4.50
Boulder, Colo.
July 16 it Was announced company plans to offer and
sell 3,000,000 shares of its common stock. Price—At
par
($6 per share). Proceeds—To Construct hotel; set up in¬
-
options (to officers and employees), and for future fi¬
nancing. Underwriters—Weill, Blauner & Co., New York,
and Hallowell, Sulzberger & Co., Philadelphia, Pa.
Probable
about 200,000 shares of class A stock.
—Houston, Texas.
*
bidding.
derwritten.
Bank of the Southwest National Association
Radio & Television Corp.
Herold
*
Morgan Stanley & Co.; The First Boston Corp. Bids-
y
sell
proposed $36,700,000 California-to-Hawaii
July 25 it was announced stockholders on Aug. 10 will
vote on increasing the authorized common stock from
400,000 shares to 1,000.000 shares, in order to provide
in
Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
a
000,000 first and refunding mortgage bonds, series M,
due 1986. Proceeds—To help finance 1956 expansion pro¬
gram. Underwriter—To be determined by competitive
termined
American Petrofina, Inc.
-V
.
New York.
,
writer—Arthur M. Krensky & Co., Inc., Chicago, 111.
-
.
Aug. 16, will
probably be financed by a debenture issue. Hawaiian
Telephone Co.'s investment will be approximately $5,500,000. Underwriter—Probably Kidder, Peabody & Co.,
proposed sale of $40,-
a
Co.
cable and, if approved by the directors on
(10/23)
Aug. 28 the trustees authorized
-
July 30 it was announced that company plans to acquire
a
15% participation with American Telephone & Tele-'
ed to be received up to 11 a.m.
tration—Planned for Sept. 7.
on
-
-
stockholders.
Hawaiian Telephone
Co., Chicago, III.
F. F. Elliott, President, on March 18 stated in part: "To
meet the cost of present proposed capital expenditures,
it appears that some additional financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark
Air-Vue Products
Aug.
to
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan StanJev &■ Co. Bids—
(EDT)
'
Pineapple Co., Ltd.
Aug 21 it Was announced company plans some new fi¬
nancing.
Proceeds — To pay long-term debt and for
working capital. "Underwriter—None, if stock is offered
Crane
Colo,
•
Hawaiian
and sell
be deter¬
Underwriter—To
•;
Manufacturing Co.
New York.
Columbia Gas System, Inc. (10/3)
Aug. 7 it was announced company may issue
debentures.
Offering—Probably early in October.
July 16 it was reported company may be considering sale
of about $1,600,000 to $1,500,000 bonds or debentures.
Underwriter—May be G. H. Walker & Co., St. Louis and
Corp., Houston, Texas 4
Feb. 29 it was announced an application has been filed
with the FPC for construction of a 565.7 mile pipeline
system to cost $68,251,000. Underwriters—May be Leh¬
man Brothers and Allen & Co., both of New York.
of
Co.,
Haskelite
Transmission
$25,000,000
&
New^Tork.
equipment.
Coastal
'.-444:
4,
4
Hartfield Stores, Inc.
Chicago A Illinois Midland Ry»
Aug. 14 it was announced company plans to issue and sell
through negotiated channels an issue of up to $9,000,000;
first mortgage bonds (probably privately). Proceeds—
To retire outstanding 4%% notes and for purchase of
leased
(Texas) 4
Aug:1 27 it was reported company plans to issue and Sell*
300,000 shares of common stock. : Price—Expected at.
$10 per share. Underwriter—Van Alstyne, Noel & Co.,.
Co./
Loewi &
Corp.
was
New York, who has acquired a sub¬
corporation, may handle any new
financing that may be necessary.
:
' .
:;--44'4 .'4-4; 4/
Rhoades
4:/-444'-:
Feb. 20 it ,was reported
•
—
will be offered
stantial interest in the
,
Underwriter
6,1956
announced this corporation is planning a
5,006-acre industrial development on two sites midway
between Dallas and Fort Worth, Tex.
Carl M. Loeb,
July 16 it
1.
Rapids, Wis.
hew issue of common stock
■: * Great Southwest
Motor Transport Co.
July 9 it was reported early registration is expected
of 34,600 shares of 6% convertible preferred stock (par
$10) and 66,500 shares of common stock (the latter* to
be sold by certain stockholders).
Proceeds—From sale
of preferred to provide funds for expansion.
Office—
Wisconsin
a
Thursday, September
for subscription by common stockholders before April,,
1957. Proceeds—To repay bank loans, etc., and for con¬
struction program.
4- 44,:4 / , ' 4'4 ^^4'-''''\4^-44
Wisconsin
—3500 Maison Road,
ttone.
sible that
.».
June
?
25
it
Indiana National
Bank, Indianapolis, Ind.
^
27 Bank offered stockholders of record Aug. 24,
lS56, the right to subscribe on or before Sept. 13 for
TS^OOO shares of capital stock (par $20) on a l-for-4
Aug.
Price —$65
basis.
per
Underwriter
share.
—
Blyth &
Co., Inc., New YTork.
City Power & Light Co.
stockholders approved a proposal
Kansas
April
24
increasing
by $20,000,000. Un¬
competitive bidding.
bhflded indebtedness of the company
derwriter
—
To be determined by
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
Union Securities Corp. (jointly): Lehman Brothcs
and
Amount and timing
(probably not until first
and
Bear, Stearns & Co. (jointly).
has
not
yet been determined
half of 1957).
?
/4-^;4:4'
Lee Offshore Drilling Co.,
Tulsa, Okla.
Aug. 20 it was reported company
plans registration in
September of $2,500,000 of convertible class A stock.
Underwriter—Rauscher, Pierce & Co., Dallas, Texas.
; L "r
April 17 it was announced company plans to issue and
sell next Fall $20,000,000 to $25,000,000 first mortgage
bonds. Underwriter — To be determined by competitive
44Long Island Lighting Co.
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co!-, Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
Baxter. Williams & Co. (jointly); Smith, Barney & Co.
* Lucky Stores, Inc.
••
Aug. 28 the directors of Foremost Dairies, Inc., voted
to offer Foremost's stockholders the right to subscribe
for
630,000 shares of common stock of Lucky Stores, Inc.
of eight Lucky shares for each 100 shares of
stock held (with an oversubscription privi¬
at the rate
Foremost
lege). Price — $12 per share. Proceeds — To Foremost
Dairies, Inc. Underwriter—Allen & Co., New York.
Marsh Steel Co.
July
sell
3
it
some
was
reported
additional
company
common
stock.
plans to
issue
Proceeds—For
and
ex¬
pansion program. Underwriter—The First Trust Co. of
Lincoln, Neb.
Stock Increase—Stockholders will vote
on increasing authorized common stock from
100,000 to
200.000 shares.
Volume 184
Number 5566
„
The Commercial and Financial Chronicle
..
(1007)
May Department Stores Co.
July 19 it was announced that this
take
financing for
Proceeds
one
or
(jointly); Lehman Brothers. Bids—Tentatively expected
.
to be received up to 11
company may under¬
estate companies.
real
more
•
sell in
reported that company is considering the
$10,000,000 first mortgage bonds due 1986. Underwriter-—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; White, Weld &
Co.: Blyth &
Co., Inc.; Kidder, Peabody & Co. and Drexel
(jointly); The
sidiaries.
Business—A holding
:—None. /:•
/'■ • i.
-
Michigan Belt Telephone Co.
vV\,/.
April 19 company applied to the
Michigan P. S. Commission for permission to issue and sell
$30,000,000 of
40-year debentures later this year.
Proceeds—For con¬
Co.
•
Minneapolis Gas
16
WW*stuart* /
authorized
to
common
2,500,000 shares.
underwritten
}
Co.
stockholders
approved
an
*
.
Increase
in
r
loans.
the
/
stock
(par $1) from 1,700,000 shares
Previous offer to stockholders was
Pierce, Fenner & JBeane
Pacific Northwest Pipeline
Corp.
20 C. R.
Williams, President,
about 280,000 shares of common stock
sold
«
in
connection
White,
announced
National Steel Corp.
that
12
company
late this
pected
White, Weld & Co.; Lehman Brothers
(jointly).
Inc.;
Jan.
it
announced
was
company
vestors
plans to
its
merge
in
subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric
Light Co., into
during 1956.; This would be followed by
a
Aug.
$20,000,000
New
/
Northern Natural Gas Co. •
19 it was reported company plans to: finance
construction
•'
>
stockholders
program
(costing
per
its
about
to
institutional
new
be
Irving
Rosenthal,
Bids—Tentatively scheduled
Southern
announced
Counties
was
Gas
plans to issue
due
Oct.
1,
to be opened on Oct. 8.
Co.
•
of
y.
California
reported company may in the Fall offer
Southern Pacific RR.
Aug.
8
it
Co.
(9/19)
reported company may issue and sell
$35,000,000 of first mortgage bonds, series H, due 1983.
Proceeds—For capital expenditures.
Underwriter—To
be determined by
competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. Bids
Fort Lee, N. J.
President,
company
Fenner & Beane.
in¬
Proceeds—To pay,
project to cost an esti¬
power
that
that
was
J"-
»
1,405
additional
—To be received up to noon
of
common
<
18
stock
(EDT)
on
Sept. 19.
X
Gathering Corp., Houston, Texas
David
C.
has filed an
Commission for a
pany
President, announced com¬
application with the Federal Power
of
necessity to
364-mile submarine gas pipeline off-shore the
Louisiana from the
Sabine
River to the Gulf
build
coast
of
Coast of
Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not
yet teen determined, but tentative
by
stock at maturity, aind
Underwriter—Salomon Bros. & Hutzlfcr,
York; /X--.';
i/A'
July 2 it
■
was reported company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive
bidding. Prbb^
able bidders: Halsey, Stuart & Co.
Inc.; The First Bos¬
ton Corp.; Blyth & Co.
Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler
(jointly)-;
Harriman Ripley & Co. Inc. and Stone & Webster
Secu-/
rities Corp. (jointly). Bids—Expected to be
received upi*
to 11 a.m.
(EDT) on Oct. 30.
v*
Ohio Power Co.
July 2 it
(10/30)
VvKJ-'"
reported company proposes to issue dqd
sell 60,000 shares of cumulative
preferred stock (phr
$100). Underwriter—To be determined by competitive
was
bidding.
Probable bidders: The First Boston
Cor£.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Harrinikn
Ripley & Co. Inc. and Stone & Webster Securities
Underwriter—None.
//■
was reported
company plans offering
stockholders of record Sept.
26,
common
170,000 additional shares of
of
one new
to its
1956, of about
stock
common
share for each 12 shares held
on
(with
the
an
basis
over¬
subscription privilege); rights to expire in about 20
days
after subscription warrants are
mailed.
Underwriter
None.
Registration—Expected early in September.
Southwestern Publio
Aug.
7 it
sell in
to
stockholders
struction
W ;
Service Co.
announced
was
February
gage bonds and
company plans to issue and
or March, 1957, $5,000,000 of first mort¬
$5,000,000 additional common stock first
on
l-for-20 basis.
a
program.
Proceeds—For
Underwriter—Dillon, Read
New York.
&
con¬
Co.,
;-i
Transcontinental Gas Pipe Line
Corp.
was reported company may offer to its stock¬
holders about $7,000,000 additional common
stock later
on or
Aug. 13 it
this
program.
—
United
(11/14)
be
June
pro
000
is
one
of
that
several
debentures
are
issued, they will be offered
stockholders.
common
Underwriter—Kuhn,
Co., New Yoik.
additional
more
expire
shares
of
common
voting stock at rate
Rights
than 2,500 shares to each stockholder.
on
Aug.
1.
Unsubscribed stock will be of¬
only. Price—$2
per
share.
Underwriter—None.
Virginian Ry. (JlO/4)
Aug. 20 it was reported the company has applied to the
ICC for authority to issue and sell $3,600,000 equipment
trust certificates, which will mature in 15 equal annual
installments. Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Kidder, Peabody & Co.; Blair
company
& Co. Incorporated.
Bids—Expected
on
or
about Oct. 4.
Washington Gas Light Co.
June
7
it
announced
proposes to finance
pipeline in Virginia to
$3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Offering—
proposed
was
new
company
construction
of
cost about
Louis-San Francisco Ry.
5 company offered not exceeding
$61,600,000 of
50-year income 5% debentures, series A, due Jan. 1, 2006,
debentures
fered to residents of Oklahoma
Expected in September.
Sept.
&
of not
will
plans to issue
apd sell 15,000 shares of $1.20 cumulative preferred
stock, series A (par $20) and 25,000 shares of common
stock.
Proceeds—For expansion and working capital.
it St.
convertible
University Life Insurance Co., Norman, Okla.
Wallace, President, announced company
plans in near future to offer to its 200 stockholders 500,-
Machinery, Inc.
Underwriter—Loewi & Co., Milwaukee, Wis.
Rubber Co.
June 21, Wayne
include Halsey, Stuart & Co. Inc.; The First Boston Corp.
announced that
rata to
Loeb
1956.
This large expansion, the company says, can be
financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive bidding, may
was
of
convertible
determined
$87,000,000, including $20,000,000 budgeted for
Racine Hydraulics &
States
29, H. E. Humphreys, Jr., Chairman, stated
issuance
14.
Aug. 21 it
Co.; Stone &
possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added
that, if
Puget Sound Power & Light Co.
Feb. 15 the company announced that it estimates that its
construction
program
for the
years
1956-1959
will
amount to
&
'//j:.XV/'
writer—Lehman Brothers, New York.
(jointly). Bids—Ex-
To
Underwriters—White, Weld
Underwood Corp.
Aug. 13 it was reported that company may offer pub¬
licly this fall an issue of convertible debentures. Under¬
about Oct. 16. X
Underwriter
year.
Webster Securities Corp.
competitive
Nov,
(10/30>
privilege).
Southern Union Gas Co.
Aug. 27 it
bidding.
Probable' bidders:
Halsey,
Stuart
&
Co.
Inc.; The First Boston Corp.; Kuhn,
Loeb & Co., and Lehman Brothers
(jointly); Morgan
Stanley & Co. and Drexel & Co. (jointly). Bids—Tenta¬
tively scheduled to be received up to 11 a.m.- (EST) on
notes, convertible into preferred
Power Co.
oversubscription
^
rights to subscribe for
Public Service Electric & Gas Co.
struction
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities
(probably
stock).
take
April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. [It is now planned
to
issue and sell $50,000,000
of first and refunding
mortgage bonds.]
Proceeds — To help finance con¬
a
the State of
common
/
was announced
company is considering is¬
and sale to stockholders later this
year of some
additional common stock on a
pro rata basis (with an
suance
'
pected to be received
•
Bintliff,
certificate
share.
^ **;'#•:V ^
Co.
April 19 it
Walter E. Seibert, President, announced that
will soon file a registration statement with the
Hutzler and Union Securities Corp.
-
,
9,
Southern Union Gas
(Del.)
Public Service Co. of Indiana, Inc. (10/16)
July 30 it was reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds — To retire
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp.; Harriman Ripley & Co. Inc.;
Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
o/:/ /
shares
Cuba Oil & Metals Corp.
•
a
Oft&nore
•
bonds
/Pocahontas Fuel Co., Inc.
July 27 it was announced that following 100% stock dis¬
tribution to stockholders of record Aug. 28, 1956, a public
offering of approximately 200,000 shares of capital stock,
consisting of shares held in the treasury and by certain
stockholders. Underwriters—Morgan Stanley & Co. and
F. S. Smithers & Co., both of New York. Offering—Ex¬
pected in September.
l-for-2 basis. New England Electric
System owns
2,791 shares out of the 2,810 shares outstanding. Price—
At par ($100 per share).; ProceedSr-rTd
reduce"indebted¬
ness to parent.
Underwriter—None.
••
'■
'
• Ohio
of
540,651.75 shares of Pittsburgh Rys. Co. Price—-About $6
:
Norwood Gas Co., Norwood, Mass. '
Aug. 20 it was announced company plans to offer to its
^>w
sale
Co. will offer to its stockholders
$40,000,000>
through issuance of debentures and treasury funds in
latter part of year.
Underwriter—Probably Blyth & Co.*
•
Co.
the general public.
Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric
Underwriters—To be determined by competi¬
bidding.
Probable bidders:
Halsey, Stuart & Co
Nov.
borrow
place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co.
(jointly);
Lehman Brothers; The First Boston
Corp.; Equitable Se¬
curities Corp.; Merrill Lynch.
Pierce, Fenner & Beane,
Kidder, Feabodv & Co. and White, Weld & Co. (jointly)
on
to
SEC preparatory to an equity offering
planned to
announced company plans to issue and sell
of first mortgage bonds during October
July
Pan
April
1956.
Inc.
21,
company
was
$10,000,000
1956
made
$217,400,000.
-
England Power Co.
Jan. 3 it
:
the
be
announced
was
$60,000,000 of 27-year debentures
—
Beane, Kidder, Peabody &
Co. and White, Weld & Co.
(jointly).
tive
as
to
company plans to purchase another amusement park and
merge the two and then sell stock to public.
The First Boston
Corp.; Equitable Securities Corp.; Mer- '
rill Lynch, Pierce, Fenner &
of
well
as
expected
revolving bank loan which will
.
•"
m*
$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.;
White, Weld & Co.; Merrill Lynch, Pierce,
organizing companies and
Palisades Amusement Park,
one company
May be determined by competitive bidding Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co., Salomon Bros. &
Hutzler, Union Securities Corp.
and Wood, Struthers & Co.
(jointly); Lehman Brothers;
'
on a
part, for cost of
mated
first, mortgage bond issue
by the resultant company, the
name of which has not as
yet been determined. Under¬
writer
arrangements are
to $60,000,000
through
sell
Jan. 30 it
reported company plans to sell about $32,-
reduced
England Electric System
3
common stock to the
up
:
'
New
000,000 of
that
and Union Secu¬
,^
was
"ail
"
Proceeds—For construction program. Underwriter
—To be determined by
competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley &
,
Aug. 13 it
'
Telegraph Co.
Registration—Planned for Sept. 18.
soon.
Pacific: Northwest Power Co.
Spring $35,000,000 of first mortgage bonds due
Underwriter—If determined by competitive bid¬
ding, the following may bid: Halsey, Stuart & Co.
&
1983.
plans to issue and sell
1976.
rities Corp.
and
—
bf America
Telephone
(10/8)
Aug. 30 it
Underwriters—White, Weld & I;
Natural Gas Pipe Una Co.
Feb. 20 it was reported
Bell
•'*
:
:
Co.; Kidder, Peabody & Co.; The Dominion Securities
Corp.; and Union Securities Corp. Registration
Ex¬
<
'
j
r
the
The First Boston Corp.
repay $200,000,000 bank
Sachs & Co., New York.
Underwriter—Goldman,
★ Southern
were entered into at the
time of the original
financing
in April of 1955.
company announced that it is estimated
Price—$10 per share. Proceeds—To¬
that total construction
gether
with
expenditures planned to start in
funds from private sale of
$35,000,000
addi¬
the current year and to be
completed in mid-1959 will / tional first mortgage bonds, and
$10,000,000 of 5.6%
amount to a minimum of
interim notes and
$200,000,000. Underwriters—
borrowings from banks, will be used
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; and
to construction program.
March
.
be consider¬
may
part
of its new
money requirements from the sale of
$5,'000,000 of preferred stock and the balance from
the
private sale of $5,000,000 principal amount of
bonds.
Underwriter—Kidder, Peabody & Co., New York.
?:
(par $1) are to be
subscription I contracts which
with
-v
,
;;
Brothers and Blyth &
Co., Inc. (jointly); Smith, Barney
& Co.; Kuhn, Loeb &
Co.; Harriman Ripley & Co. Inc.
March
by Kalman & Co., St. Paul, Minn.
and
& Co.
South Carolina Electric & Gas Co.
/
/
March 9, S. C.
McMeekin, President, announced that it
is expected that
$10,000,000 of new money will be re¬
quired in connection with the
company's 1956 construc¬
tion program. The
company proposes to obtain a
.
bers: Merrill Lynch,
Sears, Roebuck
Aug. 13 it was reported that
company
ing new financing. Proceeds—To
equity financing. Underwriters—(1) for any com¬
stock (probably first to
stockholders) — Merrill
Lynch, Pierce, Fenner & Beane. (2) For preferred
stock,
to be determined
by competitive bidding. Probable bidmon
■
April
.
May 17 stockholders voted to increase the authorized
preferred stock from 240,000 shares to
500,000 shares and
the authorized common stock from
3,681,000 shares to
5,000,000 shares* Company has no immediate plan to do
any
"
Underwriter—To" be determined by
bidders:
Inc.; Morgan Stanley & Co.
Underwriter
company.
Oklahoma Gas & Electric Co.
First
Boston Corp. Bids—Not ex-pected to be received until December.- — .
..
.
struction program:
the
State of Oklahoma
$20,000,000 of its capital
($10,000,000 within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬
stock
Co.
was
sale of
& Co.
154,000 shares of common stock (no
par), and cash
equivalent to the unpaid portion of the
preferred divi¬
dend which has been declared
payable in 1956, in ex¬
change for its 616,000 shares of $100
par value 5% pre¬
ferred stock, series
A, on the basis of $100 of deben¬
tures, one-quarter share of common stock and
unpaid
dividends of $2.50 per
preferred share in exchange for
each 5% preferred share.
The offer will
expire on Dec. 31,
1956, unless extended.
Dealer-Manager—Eastman, Dil¬
lon, Union Securities & Co., New York.
Exchange Agent
-—The Chase Manhattan
Bank, New York..
Oct. 30.
Corp., Oklahoma City, Okla.
July 26 it was announced company has been authorized
by the Oklahoma Securities Commission to issue and
—
Metropolitan Edison
on
Oklahoma
For development of branch stores and re¬
gional shopping centers.
-Underwriters—Goldman, Sachs
& Co. and Lehman
Brothers, New York.
July 2 it
(EDT)
a.m.
35
Underwriter
The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.
—
-
The Commercial and Financial
(1008)
36
is
greater than each
1955.
Chror$cle
of the four
payment in
Alb. E. Gordon Appointed
By Distributors Group, htc,
'
The five
largest investments of
the fund on July 31 were U. S.
Steel, du Pont, Bethlehem Steel,
Boeing Airplane and Interna¬
Are YOU
Interested In
Important purchases during the
last quarter included 10,200 shares
of
Sunray
Mid-Continent
Oil
Company, 5,000 shares of Granite
City Steel Company, 5,000 shares
Investing In
Suez and Price of Crude Oil
National Growth Stocks
Earlier this year we
said the stage was being set for an in¬
Since then, the spiral of labor and
material, particularly steel, has further increased costs which
were
already high in
relation to crude-oil prices. Refining
spreads are near the high of the past few years; demand is up in
1956 by 5.5%.
Ordinarily, this combination would mean a price
increase. But domestic production has increased 4.4% and imports
by over 11%, resulting in higher than necessary inventories.
The Suez crisis shakes conlidence in the reliability of imports.
Series?
crease
National Growth Stocks Scries is
a
stock mutual invest¬
common
ment fund
providing
a
supervised
investment in securities selected
for
possible long-term growth of
capital with special consideration
given to corporations actively en¬
gaged in newer scientific develop¬
ments and technologies. Prospec¬
tus and other information may be
obtained from your investment
.
dealer
y
Established 1930
,
{.120 broodwoy, New York 5, New York
100th
the
Consecutive
ships to
also
Quarterly Dividend
EATON & HOWAIfiD
STOCK
be expected.
commodity, and
may
FUND
12 CENTS A SHARE
world
a
pass
that
sure
settlement
will
cost
to
money
10
of
the
BALANCED FUND
16 CENTS A SHARE
'
Jf-g,
98th Consecutive Quarterly Dividend
>\
/■•■ >/,
y.
WABC-TV, Channel 7,
shows
'Dividends payable Sept. 25 to sharehold¬
ers of record at 4:30 P.M., Sept. 12, 1956.
24..Federal Street t Boston
Wellington Fund last month set
another new sales record of $7,497,000, the largest for any August
in the 27-year history of the fund,
A. J. Wilkins, Vice-President, re¬
ported. These sales exceeded the
like month of 1955 by $1,415,000.
Wellington Fund sales in the
first eight months of this year also
were at new^high
levels, Mr. Wil¬
kins
stated.
Gross
sales
for
the
period amounted to $69,572,000,
60% from sales of $43,480,000
reported for the first eight months
of 1955. Wellington Fund at pres¬
ent
has
approximately
190,000
shareholders, placing it among the
ten
largest corporations in the
country
in
number
of
share¬
up
THE FULLY
'
ADMINISTERED FUND
"r
of
Group
Securities,
inc.
Incorporated 1933
A mutual fund
;»
investing
holders.
-
"Systematic Withdrawal
proportions "balanced"
Plan"
in accordance with
man¬
agement's judgment.
A PROSPECTUS
ON
REQUEST
from your investment dealer
Distributors
63 Wall
Group, Incorporated
Street, New York 5, N. Y.
this
out
week
dealers
country.
invest¬
to
throughout
the
In this short period
more
in the plan by people
invested
who have
found that the convenient features
the
plan
fill
A Mutual Investment Fund
a
in
need
their
financial programs.
The plan, in brief, provides that
an
investor
can
receive
auto¬
matically a
or
quarter,
INC.
.
of
wishes
from
investment
Fund
Wellington
a
until
account
vestments
his
in¬
completely with¬
provided
the
investor
drawn;
opens
check every month,
in any amount he
are
his account with
a
Welling¬
ton investment of at least
$10,000.
Withdrawals must be at least $50
or
more each
month or quarter.
Full
63rd
A
quarterly distribution of nmS C-=«tS ^
(09c)
'
DISTRIBUTION
per
share payable out of ordi¬
income
nary
net
cents
(21c)
capital
per
gains
and
twenty-<-ne
share out of realized
have
been
declared
payable September 29,1956, to share¬
holders of record September 10,1956.
withdrawals.
tributions
ditional
Trust
as
KIng.ley 5-3311
are
shares
are
dividend
reinvested
dis¬
in
ad¬
The Corporation
Company in New York acts
custodian
all
for
of
planholders and
the
mechanics
of
the plan.
While
the
vestment
Philade'phia 9, Pa.
All
shares.
handles
ROY R. COFFIN, Pres.
123 South Broad Street
fractional
and
liquidated to meet the stipulated
minimum
under
the
initial
plan is $10,-
000, plans started to date
about
to
$16,000.
date
was
vestment of
average
The largest
started
in¬
with
plan
in¬
an
$138,000.
reduced
were
4V2s,
t
■■
only thing that gives the
organization pause is the
that
viewers
of
the
Demo¬
Net
Inc.,
1989; Northern Pacific Ref.
2047 and Southern Pacific
Deb.
The
balance
common
cash
between
on
stocks
one
hand
on
the
other
end
Diversified
of
Income
the
dividends
first
nine
months
the
of
Fund's fiscal year totaled 30c per
share compared to 29c in the like
period of 1955.
(21.8%
pulp and paper industry (19.6%)
and
the
oil
of
and
gas
industry
politan
as
Urban D.
Fahnestock
for
,
\
:
territory
South
has
:
Salle
La
acquired
The
Street.
the
of
assets
and
Investment
Corporation, located at
Street address, and
LaSalle
has named William W. Sims, here¬
tofore President of Mid-Continent
Investment,
of the
Resident Manager
as
office, the 45th in the
firm's coast-to-coast organization.
new
the securities
also
said
from
Investment
business.
Mr.
Sims
Officers' and
that
em¬
ployees
f of
become
associated with the -Wal-'
ston
have
Mid-Continent
&
office .and- that Walstoii
acquired the mem¬
Co., Inc. has
York
MOoney, Jr., has joined
& Co., 65 Broadway,
City, members of
National
the
100 Park
dealers
Corporation,
Avenue, New York City,
distributors
underwriters,
in
investment
announced the
Peiser
Harold
J.
as
and
securities,
election of Donald
Vice-President,
Kingsberg
Vice-President.
as
and
Assistant
\
•
invest in
ATOMIC SCIENCE
as
through
ATOMIC
30,
'
T
DEVELOPMENT
•
MUTUAL
FUND, INC.
from net investment income of 10
cents
per
1956.
It was the 95th consecutive
Urban D. Mooney, Jr.
GET THE FACTS AND FREE
share, payable Sept. 1,
New
Stock
York
Exchange,
quarterly
Manager of the Bond Department.
Mr. Mooney was
dividend of the fund,
represented a 10% increase
share, over the two previous
in 1956, aiid
ated
and
with
Bear,
Lehman
formerly associ¬
Stearns & Co.
Brothers.
PROSPECTUS
as
and
dividends paid
Metro¬
Company
Elects Officers
Bullock Fund recently declared
an
increased quarterly dividend
per
Insurance
agent.
an
Central
Fund,
April
Life
Opens Chicago Office
compared with net assets of $30,-
697,067 reported
1956.
V
with the
the
Walston & Co., Inc.
E.
$32,136,154,
with
and
includes Florida,
Georgia,
Mississippi,
Alabama,
Louisiana and part of Tennessee,
and he will make his headquarters
at 6840 S. W. 19th St., in Miami.
On July 31, total
were
associated
was
Accountant
months, according to the quar¬
terly report for the period ended
July 31, 1956, currently being sent
assets
two
com¬
Stewart Warner Corporation as an
Mooney Joins
a mutual fund managed by
Calvin Bullock, passed the $32,000,000 mark during the last three
net
during
a
Central Naf I Corp.
1
Corp, Ltd.
Ltd.,
to shareholders.
as
bership of Mid-Continent on the
Major changes in the fund's Midwest
Stock
Exchange.
The
portfolio in the last quarter were main office of Walston & Co., Inc.
purchases of 1,000 shares of Henry. is located in New York City. •
L
Morgan & Company Limited and
800 shares of Industrial Acceptance
New
Bullock
II,
served
Navy
(19.3%).
Fahnestock & Go.
Top $32
assets
48 Cana¬
enterprises, chiefly
mining industry
of the fund's assets), the
Urban
Million Mark
Net
some
business
in the metals and
Bullock Fund Net
Assets
he
area,
Investments, the fund reported, Mid-Continent
dian
■
during
the
munications officer in the Pacific
the
Canadiaii Fund,
included stocks of
In¬
.
paid
with
years
War
Gordon
terly report for the period, being Coincident with the announce¬
to
shareholders with
a
ment of the entry, of Walston &
quarterly dividend at the rate of Co. into the Chicago area, Mr.
10 cents per share.
Sims announced the withdrawal of
peak
new
a
■
mailed
vestment Fund's third
outstanding reached
of 6,861,547.
sponsor
organization. "
Mr. Gordon's
World
Mr.
Securities
by Calvin Bullock,
$43,000,212 as of July 31,
1956, according to the fund's quar¬
virtually
unchanged,
proportions
amounting Jto
and 69.3% respectively.
the
Before
firm
U. S. incorporated mutual
a
ap-
CHICAGO, 111.—Walston & Co.,
Inc., one of the nation's leading
brokerage
firms,
is
opening a
branch office in Chicago today at
totaled
and
the
of
assets
who
earlier
which
know
fund managed
4%s, 1981.
senior securities
to
'Over $43 Million
Chicago & St. Louis Deb.
York,
4V2S,
4V2S,
like
s
A.
experience in¬
posts with Merrill
Lynch, Pierce, Fenner & Beane,
including the resident manager¬
ship of their Fort Wayne, Ind.,
and Fresno, Calif., offices.
cludes
Mid-Continent
New
2018;
o
investment
broad
231
Denver, Rio Grande
Western
and
1
f"
been
the
Albert E. Gordon
His
Net Assets Now
Telephone; & : Tele¬
graph Deb. 4%s, 1988. "Holdings
such
•'
occasion.
an
Canadian Fund's
Pacific
and
At
than $2,000,000 has been
FUND
.
quarter on
Aug. 31, net assets amounted to
$9.58 per share compared to $9.24
siderable dealer and investor ac¬ .on
May 31, 1956. Total net assets
ceptance, according to the latest increased to more than $65 million
issue
of
"Wellington
News" during the quarter and shares
mailed
such
why.
to
its, bond,, list included:
American Telephone & Telegraph
37/8s, 1990; Champion Paper and
Fibre Deb. 3%s, 1981; Jersey Cen¬
tral Power and Light 4Vss, 1986,
the
Wellington Fund's "Systematic
Withdrawal Plan," launched about
a
year ago, has met with con¬
ment
PHILADELPHIA
added
u a
ucceed
has
of this
John
to
would
ments in senior securities.■, Issues
30.7%
Highly Successful
on
even¬
conven¬
opportunities for Diversified In¬
Republican
Convention
in
San
vestment Fund, a balanced fund,
Francisco.
Calvin
Bullock's
re¬
to further strengthen -its r invest-,
search staff
remained
bonds, preferred and
common stocks, with the
Results
the
approach with far greater enthu¬
siasm than did those watching the
past 90 days afforded a. number of
and
in
covering
one
funds,
cratic - Convention. in Chicago re¬
sponded to the mutual funds! sales
the
weakness in
Shares,
mutual
Bullock
Strengthened
market
s
; pointed Vice-President of
announce¬
ing
fact
Bond
Dividend
largest
The
Diversified's Bond
List
d
n
T
t
m u
u
Beaton,
pro¬
advertising,
Dalenz, VicePresident and Sales Manager of
the
company
which
managers
more than $400,000,000 in assets,
were most satisfactory. This
ad¬
vertising campaign is thought to
be the largest television venture
ever sponsored
by a mutual fund
Inc.
Wellington's Sales
Set New Highs in
First
Eight Months
spot
the
on
EATON & HOWARD
second
aocording
Probably the other Arab nations will also try to get
more money.
These costs will largely be paid by the oil companies
and will be passed on to their customers. Logic thus again points
to an increase in the price of crude. Timing, of course, is difficult
to predict.—Jerome C. Hunsaker, Jr., Vice-President, Gas Indus¬
Fund.
20
for
tions.
Egyptians.
tries
and
ments
the
off
effec¬
was
During
both
the
Democratic
Republican National Conven¬
tions, Calvin Bullock, Ltd., man¬
agers of mutual funds, sponsored
We are
pay
f
s
and
...
through the Ditch without interruption.
this
the
■H
duced better resulUj
the life-blood of industrial
nations. A crude-price increase would be world wide. As to Suez,
we are confident that some settlement will be reached permitting
is
Oil
Conventions
at
tive, but Democrats' show
and
price of crude
tributors
Group, Inc.,»
;sponsors
of
Ronald
TV
spells potential profits for the oil industry, particularly as Texas
produces about half of all U. S. oil.
These considerations suggest that an increase in the U. S. A.
J
Regional Man¬
ager
of Dis-
-
Group Securities, Inc." He
government officials in checking the increasing trend of
imports. The corollary of this is an increase in domestic produc¬
tion. The State of Texas has for some time required oil wells to
shut down about one-half of each month.- This shut-in production
Corporation
;
:
A Puzzler!
other
or:
office of Francis I. duPont & Co.,
has been appointed Southeastern
of Glenn L. Martin Company, and
3,400 shares of McDonnell Aircraft
Corporation.
this strengthens the position of domestic producers,
Representatives, Defense Mobilizer Flemming and
Therefore,
National Securities &
Research
in the price of crude oil.
Senators
MIAMI, Fla.—Albert E. Gordon,
previously Manager of the Miami-
tional Paper.
By ROBERT R. RICH
Thursday, September 6,1956
...
Atomic Development Securities Co., Inc.
1033 THIRTIETH'STREET, N. W.,
Dept. C
WASHINGTON 1, D. C.
Tel. FEderal
3-1000
Volume
184
"
Number 5566
.
.
,
The Commercial and Financial Chronicle
(1009)
Toward Financial
'■
M
■.>
■
be
Tranquility
.
•.
tory
lation In hands, of
Some
40
to
some
50' million
stockholder Americans
seem
50 million
to be
clamoring for an extension of
something like social security for
their money
was
may
'accumulations.. And
be
a
satisfactory anyet
inarticulate
The
Last
November
Air Line
the fund's presi-
umn
as
was
the
Seaboard
featured in this col¬
affording exceptional in¬
terchange traffic.
for
enues
the
Secondly,
first
of last year also
trial
rev-
of
dent's business experience for the
ten
ticularly were its light and sim¬ strike against the
Florida Phos¬
ple capitalization, its outstanding phate plants. There has
thus been
just prior to
associating with the fund?
or
years
value.
Mentioned
par¬
(2) If the
manager of the fund's
management
is
other than
the
growth
able
increase
in dividend
'
payment,
V
(3) With what kind of person- the new stock moved
up to 44 %
Meantime, ask any sales repre- nei has the president and/or manwhich was equivalent to 89 Y2 on
sentative of mutual fund shares,
ager
of
the
fund
surrounded the old stock. At
the current price
at the retail level, to tell you how. himself?
In
other
words
how of
37%, or 75 for the old shares,
much ' time he xpends-and how much "in-breeding" is there?
Seaboard is just about back to
often he has had to make an unmeaning, is the personnel weighted where it. was when it
attracted
satisfactory reply to his finan¬ too much with same college
men, attention some nine months ago.
cially
un - informed .prospects' fraternity brothers,
in-laws, rela¬
What we want to do now is to
questions: "Is it safe?"
tives, close friends and the like?
learn why the setback and to find
Performance records of the mu(4) How much money has the if there has been
any deteriora¬
tual.funds are, spread out for all president of the
fund, its manage- tion or change in circumstances
to see and as. now published tnese
ment, officers and the personnel and outlook to cast
doubt on the
records are revealing and gen- 0f
the wholesaler or underwriter
continuity of the $2.50 dividend
erally good. The record also is- invested in the fund?
And (b) rate on the
present shares.
If
subject to mdny and varied inter- j10w much
money, in addition, has there
is
no
such evidence the
pretations. What the record does the immediate family of the fund's 6.7
% yield that it affords at the
not reveal is perhaps as important
president and the head of the present price once again will call
as.the figures.
"underwriter invested in the fund? for
an.
answer.
fect
the
of
.
.
.
reaffirmance of its attractive¬
full
months
basis for belief that
of
the
the
rev¬
enue
gain for
the
first
seven
months of the current
year should
have been greater as
compared
with
the
corresponding
1955 pe¬
riod, particularly since it includes
a
5 to 6%
freight rate increase
for
almost
-
.
two
five
of
the
months.'
seven
»
.
,
source
pointment, the
of the
this year.
in
Per share earnings for
months
seven
this
in
However,
showing was due more
to
a
larger Federal tax "bite"
than to any important increase in
the road's
operating cost ratios,
and
poor
what
small
increase
has
,
1934
to- 1943
There
and
J.935 to,
since
its
inception, to Dec. -31,
1955? " Company with Dow-Jones,.
what was the record during a re- cent
defined, bull market
ri^^vhaUasttyearei'StSt^ and
-
are
several
the
when
actionary trend of the rails gen¬
erally, but this is only partly to
a
fund obviously ducks such
questions,
this
writer
wonders
decline
Qne^ of
of
Seaboard
stock.
has been the
course,
re¬
how proud it is of the performance
blame since the decline in the rail
r6cord.
averages
<6) Who
are the people that
the
make
wholesaler's organ!-
has
10%
over
had
,
been
only
as
against 72.3%
riod.
As
for the
;
1955
pe¬
dealers?
of a fund, success of any Fund is dependent
Starting with an old Hungarian Upon its present and future, manproverb
to the effect that "too agement. To reduce the element
good is no good," there is the fund of change and luck, good or bad
burdened with too many different that any Fund may experience,
-
of pro- all the foregoing figures and, facThen there'tors need to be evaluated to-
issues—too conscientious
diving the least risk.
are
funds with rigid
formulas, gather.
■
powers. Others may seem to drift,
Then there are those that demon-
un-informed
strate, not in one ten-year period
but in many, time and time again,
HANCEMENT PRUDENTLY OB-
TAINABLE, for their present $250
their competency to manage
billion-
people's money.
safety,
thus
How does any fund prove this
competency?
For
example,
in
retrospect, when-it has taken to
shelter by retreating into a posi¬
tion
with an
overweighting in
bonds and preferred
issues.
Then
again it demonstrates its competence when
it has come out of
shelter. Or when it took a
wise position early enough in the
steely, utilities, etc.
.....
Thus it is, in the opinion of the
writer, some mutual funds are ap-
proaching
the
area
where
may
candidates
of
THE
i
c a n s
seek
MOST
EN-
accumulations.
they
billion
akje
jts
of
the
above
entitle them to become
for providing a good
quility for 40 to 50 million financially un-informed Americans.
In addition to the foregoing there
other
and
more
expenditures
sticks
that
from
1955.
now
intimate
Bringing the capital of the financially un-informed to be used
by industry and doing so at the
ieast cost in time and expense for
au concerned is the problem, best
raj-e
by a low premium
"insurance-against-capi-
for
tal-loss."
-
0
I
wo
must
be
With Mountain btates
(Special to The Financial Chronicle)
DENVER,
Colo.—Ralph V. Ed¬
and Willard G. Rhodes have
become
States
associated with
Securities
Mountain
Corp.,
Denver
Building. Mr. Edgar was
that the performance record does
formerly with Carroll, Kirchner
not reveal.
*
i &
Jaquith, Inc.
Let
us
examine the vital points
mon.
Pennroad has been
a
for
that its action
Club
time,
some
so
seller of rails
may have only limited bearing on
its thinking as to the, outlook for
the
market
For
to
some
Seaboard
com¬
the
reason
Sea¬
board has been
singled out as the
example of vulnerableness of earnings to the
eventually
vanishing factor of tax ' deferral
horrible
due to fast amortization.
The 26%
Seaboard.
The
investment proportion
represented
by
the
companies
are
not
necessarily $1.21 per share tax deferral factor
long-term investors in any one in 1955 net of $4.53 per share for
situation.
They are flexible and the Seaboard—both figures ad¬
opportunist and their decision to justed for the two-for-one split
liquidate all or part of their Sea¬ this year—is exceeded in numer¬
board position might be compared ous cases. For the Seaboard there
to "not loving Ceasar less, but is the greater chance that loss of
this temporary additive to net in¬
Rome more."
The timing of a move to liqui¬
date
now
that
an
this
may
road
be due to
progress
and
belief
a
have reached
plateau ih its
may
intermediate
support
some
for
this view appears to be found, at
least superficially, in results thus
far this year.
has come to
the
Exceptional growth
be
with
associated
Seaboard, but results for the
first
gar
measuring
applied.
avail-
capital in order to complete
projected
approach to partial financial tran-
are
When
will
their approached
consistently satisfactory performance
WITH
m e r
provide,
fr0m their ever increasing personai
spendable-savable-income,
a continuous flow of new capital.
Industry seeks the use of some
that
_
A
assured
$30
of
change in policy calling
for diversification of its portfolio,
the
Happily, in contrast, there are the
Funds that "measure up" will
fully managed funds.
Some of be the best candidates for "insurthese, hpwever, may fail to take ance-against-capital-loss."
full
advantage
of
their broad
Forty to fifty million financially
other
and Massachusetts! Investors Trust.
Due to
a
seven
months this year have
not been any more thrilling than
for most other roads with the ex¬
ception of the major soft coal
riers.
The
revenues
first
of the
seven
increase
7.9%
Seaboard
car¬
in
the
for
the
months does not
seem
impressive in comparison with the
Class I average result, and par¬
ticularly in view of the fact that
Seaboard's
been
revenues
months
seven
unduly
strikes.
of
in
last
the
first
year
had
by
two
depressed
First, the strike against
the Louisville &f Nashville and its
Nashville,
Chattanooga
&
St.
Louis
subsidiary
which
lasted
some
two
ment
in
months
mid-May
before
cost
settle¬
the
Sea¬
board a substantial volume of in-
ICC
a
for
come
find
may
conpensation
in
growth of net before taxes.
This
does
mediately
wanted
as
not
as
it
come
about
happens
-current
to
results
im¬
be
are
showing.
It takes time, and in the
meantime, there is the period of
squeeze such as is being experi¬
enced.
Of the $7.1
million in¬
in gross for the first seven
months of this year as compared
crease
with
permission
to
con¬
connecting line to the At¬
Coast
Line.
Whether the
Seaboard will get all of this busi¬
depends
ness
the pending
on
de¬
cision of the Commission.
This
growth trend should dispel
the
idea that the Seaboard, fully
dieselized, with modern yards and
with extensive CTC installation is
good that it
not
can
get much,
better.
Despite the mediocre start
year, it is nevertheless esti¬
this
mated that the road's
the
full
earnings for
1956 should be in,
share. Selling at
year
of
excess
$5
per
7% times this estimate
less, and
or
producing
a yield that is far above
that of any rail stock of
compar¬
able high quality, it is no wonder
that
Seaboard
nounced
"b
around the
selling<
o
is
11
making
level.
not'
pro¬
Once the
abates,
pressure
a
formation"
o m
37-38
another
unlikely.
/(<«;/■[
Industrial Limerock
the corresponding 1955 pe¬
riod, increased operating expenses
took $5.7 million, an increase in
other expenses took some $400,000 more, and the increase in Fed¬
eral taxes, another $976,000.
Thus
the meager increase in net of only
about $125,000 or less than three
cents per share for the period.
August results may
make a
moderately better comparison as
indicated by the 10.9% increase in
car loadings for the three weeks
Stock at $2
,
M.
re-c
a
are
the future performance
which
serves
it
presently,
only with the Seaboard,
but the short line has
applied.to
af result bj£ this stringent cost
control, which also included
zation
the
Army
,
charged with contacting from the year's high; The partic¬ duction of 0.7 percentage point
ular pressure on Seaboard is be¬ in the maintenance ratio to" 32.5%
(b) What is their
lieved
the first seven months this
to
stem
from
so-called for
preparation
for
answering
the
institutional
auestjon5, dealers mav ask about
selling,
but
by year, and which this road can eas¬
the
?^ir
type
of
institution
which ily stand because of its prime
their Fund?
is
more
interested
in
exten¬ physical
condition,
pre-tax
net
program
and of making many
A sales representative sells con- sive further capital gain, and showed a $1.1 million increase as
personal sales, from ten dollars stantly. Each sale he makes is a they may feel that they have had against the increase of only $124,upward, to all sorts of people, hope for future good management it to a large extent in Seaboard 000
for
net
after
taxes.
The
mostly those financially un-in-. performance
regardless of the for the time being, According to greater erosion of net due to the
Federal
tax
formed, here is what the writer vicissitudes of time or the Dow- published reports, two of the larg¬
may also be part of the
has learned, as a means of judging Jones averages.
Thus the future est sellers have been Pennroad answer to the restrained attitude
current fig¬
important but not allimportant.
After ten years of
studying the funds, of planning
for and conducting a mass selling
Figures, especially
;
ures,
$27 million
connects
.
ing 1955 period, and the total op¬
erating cost ratio was only 72.8%
,
of*some; 16%
line
months of this yearJ was..33 %: as
rebound-is
against 32.1% for the correspond--
whereas Seaboard has
'net" decline
a
little
a
,
the
King's Eay, Ga. is scheduled to
The St. Mary's RR., a short
oc¬
for
reasons
0r "time or expense cost" to. produce the requested information?
month
open.
so
1955.
under
1944,. etc. for - each ten-year period
This
ammunition terminal' of the
at
expenses
the first seven months were
$2.60
this year scarcely more on a
per
share .basis, than
for
the
first
.
arice
lion.
lantic
^5^ When the fund is requested ness, not only for yield but also curred has been due to inflation
observation to furnish certain figures pertain- because of its good price forma¬ and not to any relinquishment of
may have done well. What did it ing to the fund or asked for
the efficiency of operations that
any tion, for those who study charts;
has been a characteristic of
do. in each pf the, ten-year pe- 0ther
this
pertinent information—does and evidence of support again
riods?
By that is meant if_the jt
price level roughly road.
readily provide unequivocal around a
For instance, the
^}hid: started in business on Dec. answers? Or does it fence-strad- equivalent to the lows of last year.
transporta¬
31, 1^34, what was the. perforin- die by leaning on the SEC, NASD
tion
ratio
for
the
first
seven
fund
existing plants were ex¬
panded. Altogether these represent
the investment of about
$86 mil¬
struct
increase
character were lo¬
the lines of the Seaboard
on
while 30
meager increase in
stead is quite epidemic due to the
inordinate
134
temporary
cated
disap¬
earnings thus far in 1956 is not
peculiar to the Seaboard but in¬
Last year,
permanent industries and 30
the
The other
During its entire existence any
mutual
growth of the South is pro¬
new
reflected the ef¬
vestment
years
longer term picture is more
however. The indus¬
ceeding unabated.
months
seven
signs of a
said to be in evidence.
are
important,
X-V"
record, and its remark¬
operating efficiency. At that
time the road's "pre-split" stock
swer
to
their
president, what was his business:
Fol¬
quest for gain without, risk. In experience for the ten years or was selling just under 75.
lowing the two-for-one split in
time. the foremost "mutual invest- years just prior to
associating
April
of
this
ment companies may be a partial wjth the fund9
year, and without
there
pick-up
Seaboard Air Line
"financially un-informed."
(1) What
-non-
Nevertheless,
year.
By GERALD D. McKEEVER
con-
ventionaL statistics, to be used in determining performance
record of the Funds. Calls attention to vast capital accumu;
that ,the
is the'
which
phosphate user, has had
going due to the unsatisfac- ;
farm
price
situation
this
slow
■
Proprietor, Mutual Funds Center, Buffalo, New York
Writer cites "more intimate measuring sticks," aside from
except
industry,
largest
By TYLER KAY
'I
wider
even
fertilizer
37
S.
Share
a
Gerber, Inc., and James
M. Toolan &
Co., both of New York
publicly offering as a
an
issue of 300,000
shares of common stock (par one
cent) of Industrial Limerock, Inc.,
Miami, Fla., at $2 per share. For
City,
are
speculation
each
four
shares
purchased,
purchaser has the
one
common
rant at
one
Each
holder
purchase
war¬
cent per warrant.
warrant
thereof
share of
the
buy
option to
stock
will
to
common
;
entitle
the
purchase
stock at
one
price
a
of $2 per share until the close
business
of
Feb. 21,
1958.
The net proceeds are to be used
on
to repay
loans amounting to $22,473; for the purchase and installa¬
tion of a complete rock crusher
and
rock
crushing plant with a
of 200 tons per hour;
capacity
for
the
installation
of
railroad
a
siding, for equipment, and
working capital and general
porate purposes.'
"
for
cor¬
-V
Industrial
Limerock, Inc. was
organized in Delaware on April
18, 1936. It has no operating his¬
tory. It holds a lease on approxi¬
mately 12,300 acres of land lo¬
cated in Collier County, Fla., con¬
taining deposits of limestone. Said
lease
win
was
L.
acquired from the Ed¬
Wheeler
Rock
principal business of the
Co.
The
corpora¬
tion will be to mine and produce
limerock aggregate for use in
manufacture
and
base
to
of
concrete
the
blocks
ready-mix concrete and as a
for asphalt and in addition
mine
base
rock
for
road
and
highway construction and similar
construction projects.
/
,
Giving effect to the above fi¬
nancing, there will be outstanding
900,000 shares of common stock
and
350,000 common stock pur¬
chase
warrants.
Two With w. G. Nielsen
(Special to The Financial Chronicle) „ .*
thus far. This gain, of
BURBANK, Calif. — Marie G.
course,
still reflects largely the
depression in the corresponding Montmeny and C. Lynn Skeen
1955
period due. to the loss of have been added to the staff of
G.
Nielsen
Co., 912 North
phosphate traffic, but it should be W.
borne in mind that gains could
reported
Chronicle
The Commercial and Financial
The
Indications of Current
STEEL INSTITUTE:
operations (percent of capacity).
week
AMERICAN IRON AND
Indicated steel
Sept.
.
or
month available.
or
month ended
Latest
Previous
Month
Tear
Week
Week
Ago
Ago
42
oil
and
-Sept.
Crude
average
Total
2,264,000
1,415,000
*2,389,000
§2,429,000
9
(bbls. of
(bbls.)
(bbls.)
Aug. 24
117,943,000
Aug. 24
24
24
24
27,523.000
13,014,000
7,831,000
Revenue
freight loaded (number of cars)—
freight received from connections (no. of
dDIVIL ENGINEERING
NEWS-RECORD:
.
U.
CONSTRUCTION
>; 7,896,000
,
7,629,000
v
177,052,000
31,521,000
30,717,000
28,883,000
134,381,000
128,934,000
44,996,000
113,600,000
43,168,000
129,794,000
46,069,000
787,272
581,238
650,186
$616,641,000
$321,458,000
$309,450,400
$330,296,000
190,237,000
166,329,000
Aug. 30
465,535,000
151,106,000
151,690,000
169,768,000
119,217,000
163,967,000
Aug. 30
126,907,000
149,376,000
110,141,000
144,631,000
i
Aug. 30
24,199,000
20,392,000
9,076,000
19,336,000
Aug. 25
9,950,000
597,000
880,000
9,030,000
9,640,000
576,000
581,000
322,000
120
111
Aug. 25
Sept.
—
1
imports < barrels)__
consumption domestic and
(barrels)
New
K«" WAY
York) at
Lead (St. Louis) at
Zinc (East St. Louis) at
CAR
freight
215
237
5.622c
5.622c
5.179c
$63.04
$63.15
$61.36
$58.17
$57.50
$52.67
Month
U.
Public
5.174c
39.625c
39.500c
37.350c
37.250c
36.050c
99.250c
99.250c
99.250c
Aug. 29
16.000c
16.000c
16.000c
15.000c
—Aug. 29
—Aug. 29
15.800c
15.800c
15.800c
14.800c
13.500c
13.500c
13.500c
12.500c
__i-d—
91.11
91.16
92.59
94.7i
100.81
101,47
102.96
107.27
Sept.
103.97
104.48
Sept.
102.80
103.30
104.83
109.06
.Sept.
100.98
101.47
102.80
107.27
96.07
Sept.
———■—-
Railroad
Group
,——.
Utilities GroupIndustrials Group ——.
Public
DAILY AVERAGES:
U. S. Government Bonds
Average corporate ——
—
Aaa
Aa
97.94
102.63
99.20
99.68
101.31
106.04
101.47
101.97
103.47
107.80
Sept.
101.97
102.63
104.14
108.16
3.21
3.08
2.89
3.66
installed
2.70
Sept.
-Sept.
3.51
3.48
3.36
3.14
3.58
3.55
3.46
3.22
Sept.
3.69
3.66
3.58
3.32
Sept.
4.00
3.96
3.88
3.59
Sept.
3.80
3.77
3.67
3.39
Sept.
3.66
3.63
Industrials Group
Sept.
3.63
3.59
3.50
3.27
Sept.
425.4
407.8
NATIONAL PAPERROARD ASSOCIATION:
Orders received (tons)
Production (tons)
and
Percentage of activity—
Unfilled orders (tons) at end of period
427.2
224,619
242,240
249,364
270,150
273,756
268,101
283,215
Aug. 25
94
95
94
99
Aug. 25
425,635
468,690
464,529
589,665
108.93
108.81
.Aug. 31
In
j
Odd-lot
i
sales
Dollar value
OF
ug"
Odd-lot purchases by dealers (customers' sales)Number of orders—Customers' total sales
Customers' short sales
Customers' other sales.
!
Dollar value
,
Round-lot sales by dealers—
Number of shares—Total sales.
1,382,828
1,378,479
1,326,164
975,290
$75,842,238
$69,678,346
$51,612,834
Other
sales
;
„
1,131,208
6,899
7,685
Aug. 11
1,082,429
1,123,523
1,062,866
6,389
1,056,477
785,375
Aug. 11
Aug. 11
$56,535,994
$58,225,321
$53,330,636
$41,063,005
—Aug. 11
272,250
282,010
255,380
203,660
272~250
2~8~2~6Io
255~380
555,310
551,640
509,960
1,089,328
Aug. ii
purchases by dealers—
Number of
shares
LINTERS
TOTAL ROUND-LOT STOCK
Total sales
ROUND-LOT
ACCOUNT
FOR
OF
—
Other sales
———
Other transactions initiated
on
—
—
I.
Other sales
Total sales
RESERVE
:
.
:i
sales
Short sales
-
—
Total sales
WHOLESALE PRICES, NEW SERIES
203~660
U. S.
Stocks,
497,060
531,900
11,418,760
11,915,820
11,529,300
514,360
11,744,040
6,310,121
6,725,396
6,162,000
6,467,080
6,008,500
,'
216,592
258,316
153,500
'
2,000,938
1,888,408
2,187,637
*
812,330
1,151,929
13,213,888
1,400,614
9,584,742
549,520
-
902,890
12,845,734
r
July
'
,
1,662,390
280,800
1,386,030
8,742,810
12,061,200
12,258,400
9,136,120
1,592,310
..
1,525,140
133,970
909,187
1,094,790
1,475.725
19,022,000
18,954,000
19,147,000
;
138,189
137,411
OF COMMERCE)—
710,782
625,976
COMMERCE):
OF
,
SALES—SECOND
DISTRICT,
OF NEW
21,897,000
21,934,000
19,022,000
7,128,000
10,664,000
356.4
426.5
sales
FEDERAL
82
113
,
83
adjusted
116
•
\
1,327,010
979,190
1,634,070
1,160,090
..Aug. 11
317,940
314,930
343,490
238,530
_Aug. 11
.Aug. 11
18,900
321,310
16,800
16,900
16,900
291,720
374,580
252,480
.Aug. 11
340,210
308,520
391,480
269,380
307,060
78
108
115
*119
106
127
126
♦116
customers
at May
42,758,421
43,097,449
38,234,562
$697,745,000
$703,854,000
$638,147,000
53,081,466
52,936,737
51,711,855
$2,891,000
$2,948,000
$2,737,000
538,000
581,000
1,014,000
545.000
$4,543,000
$3,995,000
522,123
440,980
538,052
768,621
445,758
658,736
80,836
91,791
109,589
307
503
296
$2,842,615
30,541
$2,819,641
33,934
45,343
342,183
329,774
of
31
PURCHASERS—INSTITUTE
Month
—
of
June:;
■
915,000
._
L
$4,344,000
VEHICLE
FACTORY
U.
SALES
v
713,000
FROM-
S —AUTOMOTIVE
ASSN.—Month
FACTURERS'
number
of
MANU-
July:
vehicles
of
passenger
Number
of
motor
Number
of
buses
;
;
cars
.
trucks..
i
:
.
NEW
STOCK
YORK
180,900
EXCHANGE—As
firms
carrying
net
Total customers'
Cash
;
682,097
668,890
580,600
361,472
80,310
98,300
115,220
75,580
753,466
681,081
682,369
398,810
474,390
to
margin
accounts—
debit balances
•
,
836,137
218,579,189
336,146
918,110
198,227,782
Market value of listed bonds..
:
103,137,335
104,288,895
104,002,294
borrowings
CEMENT
833,776
779,381
797,589
Aug. 11
2,576,130
2,449,230
1,806,012
Aug. 11
—Aug. 11
Aug. 11
380,010
2,460,806
414,020
2,270,511
439,180
2,383,959
1,630,480
Net
2,840,816
2,684,531
2,823,139
1,903,860
Other
of
available
after
Other
Net
Meats
.Aug. 28
84.3
83.7
82.7
All commodities other than farm and foods.
.Aug. 28
122.3
122.3
121.5
117.1
from
fixed
for
fixed
deductions
26,134,000
27,087,000
27,031,000
29,172,000
26,198,000
28,678,000
23,672,000
110
1C0
108
$102,472,451
$94,159,390
$101,460,171
22,474,067
124,946,518
18,902,599
113,061,989
24,571,388
126,031,559
4,426,354
4,708,201
120,520,164
90,039,694
108,353,788
77,808,903
4,118,719
73,690,184
CLASS I
___
income
charges..
charges
—...
4,196,087
.—_—.—
'
Income
—
*'
Depreciation
Federal
""
.....
deductions
Income
87.9
:—
——
Income
101.0
31,787,000
'
—_—=.
Miscellaneous
90.5
29,606,000
—-
a—,
May:
income
Total income
102.9
On
.
On
Ratio
161,800
2,192,172
.
_____
railway operating income
88.9
65.834
2,390,691
*
(Interstate Commerce Commission)—
Month
103.0
49,569
2,389,803
(BUREAU OF MINES)—
(barrels)
SELECTED INCOME ITEMS OE U. S.
RYS.
.
S. Govt, issues.."
other collateral—
on
Shipments from mills (barrels)^.
Stocks (at end of month—barrels)
Capacity used (pgr cent)..
2,662,427
crude runs. §Based on new annual capacity of 128,363,000 tons as
1955 basis of 125,828,319 tons.
tNumbqr of orders not reported since .introduction of
$2,779,837»
858,453
229,422,844
Month of May:
([Includes 945,000 barrels of foreign
*
~
PORTLAND
.
S.
Total of customers' free credit balances
Market value of listed shares——
.Aug. 11
110.5
July
customers.
hand and in banks in U.
on
Member
273,380
of
(000's omitted):
31
Member borrowings on U.
"
76
;
115
"
•
114.2
-
111
%
consumers—
Group
■
1,596,630
114.6
397.2
„
ultimate
to
INSURANCE
IN
7,546,000
INSTITUTE—
(000's omitted):
MOTOR
19 147.000
,
YORK—1947-49
unadjusted
daily), unadjusted—
ultimate
Total
22,247,000
18,954,000
FED¬
Industrial
1,206,010
1,666,830
.
565,834
393,310
298,920
1,297,710
>
445,667
6,093,529
i
seasonally adjusted
LIFE
88.7
BANK
INSURANCE
LIFE
85.8
1,
STORE
Kilowatt-hour
103.3
against-Jan.
of
(DEPT.
Credit extended
Aug. 11
Aug. 11
657,686
i
of July 31
(DEPT.
ELECTRIC
.Aug. 28
products.
as
1,856,000
...
(average dally), seasonally
Processed foods.
1956,
•36,512,000
2,442,000
1,026,477
<
;
COM¬
_
(average
114.6
1,
OF
i
(average monthly),
.Aug. 28
.Aug. 28
of Jan.
39,605,000
1,860,000
of July 31
as
Sales
DEFT. OF
commodities
Monthly Investment Flan.
BALES:
Sales
Dividend
»
DEPT.
—
Sales
Member
Commodity Group—
♦Revised figure.
30,300,000
Stocks, unadjusted
403,730
V
LABOR— (1947-49mm 100):
Farm
212,019
(net tons)
Average—100—Month of July:
■
.Aug. 11
.Aug. 11
.Aug. 11
Total sales
All
of month
as
RESERVE
ERAL
>
Production
Total round-lot transactions for account of members—
Total purchases
,
206,424
5,881
Other transactions initiated off the floor-
Other sales
78,895
"
.....
month
SPINNING
DEPARTMENT
the .floor—
Total purchases
Short sales
Total purchases
Short sales
525,396
'
Spinning spindles in place on July 31
Spinning spindles active on July 31
spindle hours (000's omitted) July 31
Active spindle hours per spindle in place July
779,494
MEM¬
-Aug. 11
Aug. 11
Total sales
605,380
(running bales)...
16
Number of
Aug. 11
Aug. 11
Aug. 11
—
TRANSACTIONS
1,103,598
731,820
.
—
—
$1,684,163
684,275
Active
■'
Total purchases
Short sales
Other
Aug.
COTTON
.
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
-
of
Total
STOCK
TRANSACTIONS
Short sales
sales
As
•
(SHARES):
ACCOUNT OF MEMBERS
Total round-lot sales—
Other
GINNING
COTTON
SALES ON THE N. Y.
EXCHANGE AND ROUND-LOT STOCK
FOR
$1,835,418
1,144,187
ii
u
of July 31
as
July 31—.
spindles active
PLANTS
Aug. n
—
$1,828,462
MINES)—Month of June: r;
(net tons)
public storage
-OF
Aug. 11
Short sales
71
.
Stocks
_.
Round-lot
124
Month of
—
...
tons)
(net
AND
Cotton
106.61
109.01
$76,721,948
Aug. 11
.
120
(net tons)
coke
Number of
—
2,192
c.-
Month of May (000's omitted)
from ultimate customers—month
Number of shares
18,007
5,550
EN¬
—
Revenue
purchases)—t
dealers (customers'
by
service
(BUREAU OF MINES)—Month
coke
SECURITIES EXCHANGE COMMISSION:
—
2,859
5.344
:
municipal
Linters—Consumed
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE
2,642
-
coke stock at end
EDISON
100
AVERAGE
1949
i;
229,682
INDEX—
1,648,000
.
Beehive
3 27
3.54
418.3
.Aug. 25
Aug. 25
OIL, PAINT AND DRUG REPORTER PRICE
in
CONSTRUCTION
Consumed month of July.
In consuming establishments
3.32
3.57
—Sept.
Railroad Group
Public Utilities Group-
MOODY'S COMMODITY INDEX.
251,722,000
19,776,000
construction
COTTON
.
A
266,706,000
16,353,000
>"?*■
3.21
Sept.
;
96.69
Sept.
MOODY'S BOND YIELD
262,235,000
43,000
>
RAILROADS—
NEWS-RECORD
(BUREAU
Oven
,110i52
•
Sept.
v
22,931,000
11,840,000
._
construction
;Oven
v
95.750c
Sept.
106.56
14,825,000
:
construction
S.
Production
42.600c
•
•
.Sept.
J
13,159,000
198,389,000
20,167,000
'J,
of July:
'
—-
29,606,000
218,596,000
•
Bituminous coal and lignite (net tons).
Pennsylvania anthracite (net tons).
42.525c
39.650c
—
242,583,000
218,976.000
23.554,000
53,000
29,074,000
(000's omitted):
August
$43.83
Aug. 29
AVERAGES:
235,823,000
of July:
ENGINEERING
CIVIL
$59.09
\
28 045
195,261
V
212,997,000
215
282
Aug. 29
A
Baa
277,374
INSTITUTE—
AMERICAN
OF
MERCE—RUNNING
Aaa
218,291
export
j.
freight cars
cars delivered
ASSOCIATION
10,706,000
11,190,0(10
,340,000
(barrels)
for new
GINEERING
—Aug. 29
Lead (New
Average corporate
5,440,902
24,902
4,441,780
4,218,474
19,134
Month of July:.
Orders
COKE
at
MOODY'S BOND PRICES DAILY
u. S. Government Bonds
5,743,178
4,648,865
22,773,000
53,000
:
all stocks
Increase
111
QUOTATIONS):
at
(New York)
4,886,290
(barrels of 42 gal—__________
oil
Federal
Aug. 28
Aug. 28
Aug. 28
Electrolytic copper—
Domestic refinery at.
refinery
—,—
products
COAL OUTPUT
Pig iron (per gross ton)
Scrap steel (per gross ton)
Export
Refined
State
DUN &
Aug. 30
PRICES:
Finished steel (per lb.)
Straits tin
Ago
.
•
Total
11,565,000
..
output (barrels)
Natural gasoline output (barrels)-'——1
Benzol output (barrels)_______
Crude oil imports (barrels)..
;
/■■■:}A'
97
IRON AGE COMPOSITE
(E. & M. J.
each)
Private
INSTITUTE:
Electric output (in 000 kwh.)
INDUSTRIAL)
Month
INSTITUTE—Month
production
Domestic crude
AMFW*r*V
ELECTRIC
METAL PRICES
Ions
...
,
.
AND
Year
Month
■
Indicated
SALES INDEX—FEDERAL RESERVE
— 100
Aug. 25
(COMMERCIAL
BRADSTREET, INC
£
(M therms);
PETROLEUM
June:
Locomotive units
(tons)
FAILURES
of
Total domestic
.
46,459,000
649,806
SYSTEM—1947-49 AVERAGE
EDISON
154,698,000
34,093,000
176,202,000
BUREAU
DEPARTMENT STORE
therms)______
(M
gas
AMERICAN
11,307,000
8,027,000
769,624
623,615
Aug. 30
anthracite
Pennsylvania
26,611,000
2,044,000
2,200,000
770,413
645,157
Aug. 30
OF MINES):
Bituminous coal and lignite (tons)
S.
(U.
12,632,000
ENGINEERING
—
Federal
OUTPUT
27,474,000
2,268,000
12,687,000-
,
8.
_
COAL
27,372,000
175,816,000
f
Aug. 25
cars)—Aug. 25
construction
Private construction
Public construction
State and municipal
Total
of that date:
Previous
6,684,800
7,582,000
'
-
ASSOCIATION OF AMERICAN RAILROADS:
Revenue
7,990,000
v
24
Aug. 24
.Aug. 24
Aug. 24
Kerosene (bbls.) at—
Distillate fuel oil (bbls.) at
SResidual fuel oil (bbls.) at
7,085,800
7,899,000
;
2,009,000
output (bbls.)
Aug.
Distillate fuel oil output (bbls.)
Aug.
Residual fuel oil output (bbls.)
—
Aug.
Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at
Aug.
Kerosene
<
as
Latest
ASSOCIATION—For month of
Mixed gas sales
v
7,122,100
7,126,550
Aug. £4
——_
to stills—daily average
runs
Gasoline output
quotations, *re
cases or
Natura) gas sales (M therms)
—
Manufactured gas sales (M therms)
condensate output—daily
__
in
either for the
are
June:'
castings (net tons)
gallons each)
Thursday, September 6,1956
production and other figures for th«
cover
or,
AMERICAN GAS
AMERICAN PETROLEUM INSTITUTE:
Crude
,
Dates shown in first column
that date,
on
93.8
57.5
•97.0
598.7
9
Equivalent to—
Steel ingots and
following statistical tabulations
latest week
Business Activity
,
*
*
(1010)
88
(way & structure & equipment)
Income
:
90,807,112
4,191,870
86,615,242
44,283,554
45,644,323
45,351,346
38,458,890
32,205,730
38;008,130
52,186.047
34,772,732
4,564,299
25,732,922
956,514
3.95
3.55
3.91
appropriations:
common
stock
preferred
of
taxes
85,843,607
4,035,701
121,995,858
income
:
;
stock
to
fixed
:
;_
charges-
5,745,922
Volume
184
Number 5566
.The Commercial and Financial Chronicle
..
The Farm Sector's
-
crops
j
Prospects
(1011)
with relatively good prices
for fruit
also. mentioned
were
the outlook for farmers.
in
Well-known agricultural authority avers "the. outlook lor the
national economy justifies an attitude^ of conservative watchful
to
potato growers will defend
mainly on the size of crop.
optimism." .Attributes part of farmers' plight to unbalanced
farm production and over-production. Dean Myers compares
The Dean of the New York
State College of Agriculture em¬
phasized that farmers will have
moderately favorable non-basic
fo give careful attention to farm
outlook with unfavorable
one for cotton, wheat, tobacco and rice.
Concludes, neverthe¬
less, that it is much safer to lend to a good farmer now than
:r'
it was a few years ago.V.'
-j'-'
crop
-
;
Construction,
(Special to The Financial Chronicle)
SAN FRANCISCO,
'talif.—Cur¬
have
with
joined
the
staff
of
C.
B.
Mortop & Co., Russ Building.
DIVIDEND
told in
Ithaca,
I
gram in farm and home
Dean -W.
I.
in
is
the
DIVIDEND
differ¬
"graduate
income
New "*• Y
State
o
r.k
College;
of Agriculture
told
the
75
that
CONTROLS COMPANY
OrMntbvrg, Pa.
WAGNER BAKING
ence
living
PREFERRED
A
CORPORATION
The Board of Directors has
ly
costs
and future security.
per
Stock
of
the
on
$1.75
7%
\k, Safe to Lend
par
payable
per
.
October
"These
times," Dean Myers
bankers, "when good
fanners need and appreciate
a
dependable source of credit to
finance
their
operations.
If
is
much safer now to lend to a good
told
are
ord
the
FHLR Notes
;
1,
Conservative
Watchful
MR.
Prices
of
basic
commodities,
though sharply down from the
peak of the Korean boom, have
since; been fairly stable around
the levels of 1950, the • bankers
were told.
Farm products have
ended their decline, and prices of
Industrial raw. materials
are
strong. So far the record is fairly
good.
!V:.;
' ' ;
■'
Outlook
.
"In
view of all the factors, the
outlook for the national economy
justifies
an
attitude of conserva¬
tive watchful optimism."
With
a
series
of
for
charts,
the
Dean, who is also Chair¬
man of the National Agricultural
Cornell
look
for
with
faced
they
are
restrictions
because
encouraging
acreage
and lower prices.
The outlook for
producers of "non-basic" crops—
.
LOEW'S INCORPORATED
Septeniber 5, 1956.
The Board of. Directors has de¬
a quarterly dividend of 25c
share on
the outstanding
Common Stock of the Company,
on September 30,
1956, to stock-
payable
stockholders
record
lolders of record
WALTER H. STEFFLER
at
the close of business
Secretary p Treasurer
August 23, 1956
on
DIVIDEND
UIICOWOOMIW
DIVIDEND
tNATI SUGAR COMPANY
Directors
of
the
Manati
Sugar
September 4,
1956, de¬
cided
not
to
pay
any
dividend
this
j/ar on the Company's $1 par value
Common Stock.*.
ipany
fiscal
Federal
the
Home
JOHN
Upon completion of today's of¬
the retire¬
Sept. 17,
outstanding note obligations of the
banks will total $918,000,000.
of
notes
and
on
M.
GONZALEZ,
A dividend of
URL
formerly
Board
of
Directors
has
fifty T50c)
was
declared
at
the close of business Septem*
DIVIDEND NO. 237
The
share
stockholders of record
to
THE SAFETY CAR HEATING
AND LIGHTING COMPANY, INC.
.
per
payable September 26,1956,
SAFETY INDUSTRIES, INC.
|M|
July 10,1956
•«/
.
Treasurer.
1956.
4,
cents
9
fering
CORPORATION
on
September
their member in¬
stitutions..
TENNESSEE
|O0 Wall Street, New York 5
Thf
Sept. 17, 1956, and to provide
making additional credit
by
of
.
CHARLES C.M0SK0WI1Z
funds for
Banks to
to"
Vice Pres. & Treasurer
series H-1956 notes Which mature
available
1956
close
The trans-
September 17, 1956. Checks will be mailed.
The notes are pficed at 100%.
Proceeds from the offering will
be used to redeem $150,000,000 of
Loan
at
per
agent of the banks, and a nation¬
wide group of securities dealers.
on
20,
the
September
of
busines September 10,1956.
fcr books will not be closed.
clared
Board
Smith,
of
close,
COMMON STOCK
Stock
ber 12,1956.
declared,
*
dividend of 25$ per share oh the out-'
standing Capital Stock of the Company
of the par value of $12.50 per share,
payable October 1, 1956, to holders of
record at the close of business
12> 1958-
September
61
John G. Grbenburgh
Broadway
Treasurer.
.
New York 6, N. Y.
J. T. CULLEN,
August 29, 1956
Midwest Exchange Member
yi
CHICAGO,
111. —The
Treasurer
ROME CABLE
Execu¬
!5y
tive Committee of Midwest Stock
^ipctdZcorCe
Exchange has elected to Exchange
ROME
Daniel 'J.
Cullep,
agriculture—is moderate¬ membership
Walston & Co., Inc., San Fran¬
ly favorable because there are no
cisco, California.
large government stocks and de¬
mand" is high. Agriculture as well
With Samuel B. Franklin
as industry has been going through
a
rolling readjustment, and farm¬
still have their problems with
and cattle cycles.
b£ less serious if the
poultry,
hog,
These
can
Reasonably
been happening in agriculture in
Everett
the
at
NEW
■
YORK
most of
what's
explained
Bank
stockholders
,
Advisory Committee for Secretary
next
,
producers
of
cotton,
tobacco, and rice is not
wheat,
general price
Improves.
Benson,
Crops
Different
The Cornell Dean said the out¬
ers
*
through
Loan
•
of business September 10,1956.
'
CONTROLS
STEVENS, Secretary
Market
ment of the issue due
Optimism
to
©record
A regular quarterly dividend of
37J^c per
Share has been declared op the Common
callable notes, dated Sept. 17, 195.6
and due March 15, 1957, is being
made today (Sept. 6) by the Fed¬
Home
Preferred
'
September' 20, 1950
-
eral
vertible
jStock, payable
rec¬
September 14, 1956.
J. V.
the $25.00
on
value53^ percent
Cumulative Con-
Preferred,
1956, to stockholders of
X
share has been de¬
clared
,
.
fi r farm operator de¬
farmer than it was a few years
1956 will mark clined
23%, while the average
v
;
:
ago." He also pointed out that
the eighth* annual
wage of the factory worker
•'
the
successful
country
banker
'•••; w-1. Myers
year of build¬ increased .34%.
Moreover,
the
ing more than one million new farm operator's wage represents today requires knowledge of farm
management to make loans safely.
houses. Some decline is probable
compensation for family labor,
in the next
few years, but no
management andstisk as well as
severe drop is in sight, he said. interest on
owng&-capital.
on
Industral and public construction
;
Dean Myers 4aid the present
;
Public offering of $197,000,000
continues high, ; and national se¬
price-cost squeeze is severe but Federal Home Loan Banks
3,80%
curity expenditures are rising.
not disastrous. Tfihas affected all
series E-1957
consolidated non-
The speculative boom has been
regions but has ;hit hardest the
kept in fairly good control so far
marginal operators and farmers
by
the
Federal
Reserve
and
with heavy debts.
Farmers are
Treasury with the cooperation of not
happy, and discontent has
business men, the Dean said. In been increased
by the over-pessi¬
th,e six years 1950-55, net public
mism
of ;prc^b|pnalr^>jkythphff
and. private debt increased 45%,thizers. v|.;;'X-vXXit■$.¥ .X'X
from $450 billion to $650 billion.
-"Our troubles are partly due to
T^his is still reasonable in relation unbalanced farm
production and
to assets and income, but there is
partly to over-production.
The
danger cf deterioration in quality
total farm output in 1955 is about
of credit er more speculative bor¬
4 or 5% more than can be dis¬
rowing. Debt expansion, he cau¬
posed of at current prices, The
tioned,
cannot
continue
indef¬ most
spectacular
problem,
of
initely
at
present
rates.
"We
course,
is government holding^,
must
restrain
booms
to
avoid
and we cannot reduce total farm
busts,
which
requires ■ careful
output quickly except by drought
watching, judgment, and courage." or other disaster."
dividend
share
STOCK
regular quarterly
dividend of $0.34375
1
declared the regular quarter•
annual
bankers"
of ; the
NOTICED.
ItOBERTSHAW - FULTON
:
returns.
Though
differ, the average
annual wage of the factory .worker
in 1955 was $3,979, compared witn
the average net income of $2,336;
for the farm operator. Tn bther
words, from i948 to 1955 the net
Myers
connected
now
Gorey Co., Kuss
Building.
manage¬
^ reducing costs and increasing ef¬
and to use these;net
>• One
reason why many farmers ficiency,
have changed to better jobs, the incomes wisely for family living
speaker; indicated,
Walter C.
compete successfully. The more
intensive Extension Service pro¬
were) $ Cn The Farmers' Situation
Aug-. 20.
F, Roberts is
NOTICES,
speculation
campus
SAN "FRANCISCO, Calif.—Aus¬
tin
business management in order to
»
-?
Walter Gorey Adds
^Special to The Financial Chronicle)
tis R. Lund, and John E. Mauser
ment is .especially timely and im¬
and the U. S. the past few years. Per
portant in' meeting; these needs,
prices are the three things to capita income
oi
farm
people
he
said.
Extension work
with
watch in the present prosperous from
all
sources
declined
9%
major enterprises will be con¬
period, New York State bankers ($977 in 1948 to $88"l in 1955), he
tinued, but greater emphasis will
.
'.p'a rticipatingl pointed cut. Per capita income of be given to the farm as a business
in an agricul- ; non-faim population has continued
unit. This program has the dual
tural
seminar'; to rise, to $1,935, last year. ;
objective to raise net income by
on the Cornell
I
Two With B. C. Morton
Returns
3*
stable
Or
The Board of Directots of Rome
(Special to The Financial Chronicle)
Cable
LOS
W.
ANGELES, Calif. — David
Schlegel has been added to
and
short
prices
declared
has
No.
FOX FILM CORPORATION
for
70
share on the Common
Capital Stock of the Corporation,
payable October 1, 1956, to holders
of record at the close of business
Company, 215 West Seventh St.
DIVIDEND
Dividend
TWENTIETH CENTURY-
A
35 cents per
the staff of Samuel B. Franklin &
on
satisfactory
Corporation
consecutive
-
poultrymeri,
for
is
level
70th Consecutive Dividend
NOTICE
Gerard A. Weiss,
fruit
of
Secretary
dividend of
cash
$.40 per
the outstanding Common Stock
on
this
Corporation
has
been
declared
payable September 29, 1956 to stockholders
of
September 17, 1956.
quarterly
share
record
the
at
9ept«mber 14,
close
of
business
on
1956.
DONALD A. HENDERSON,
Rome, N. Y., September 5,1956
Treasurer.
NOTICES
LONG ISLAND LIGHTING COMPANY
CONTINENTAL
Preferred Dividend No. 71
^
The Board of Directors has declared this day a
of
$L37'/2
per
share
on
THE
BAKING COMPANY
QUARTERLY
-
DIVIDEND
quarterly dividend
Electric
the outstanding $5.50 dividend Preferred
New York,
Stock, payable Octob:r 1, 1956, to stockholders of record at the close
•
dividend, for the third quarter of the
day
day declared
a
regular quarterly
1956, of. 50^
year
per
share
outstanding Common Stock, payable October 1, 1956, to
holders of record 6f such stock
at
th.e close of business Sep'
teipber 7, 1956.
y
share
on
be closed.
(80) Cents
the Capital
Stock of this
HOSTESS
::;;y::yCAKC-
August 29, 1956
treasurer
1956
to
September 30, 1956, payable
on
on
October 15,1956, to stockholders
September 14,1956.
the
following quarterly
payable October
I,
COMMON STOCK
holders of Preferred Stock
of record
at
the close of business
September 14, 1956:
Series
Per Share
Series B,
5%
$1.25
Series D,
4.25%
$1.0625
Series E,
4.35%
4.35%
$1.0875
Series F,
WILLIAM riSKIR
*
j
Company for the quarter ending
STUART K. BARNES. Sectary
-
the
dividends
■
Quarterly Dividend 1
on
clared
per
'
-
The Board of Directors has de¬
quarterly divi¬
of record at the close of business
The stock transfer books will
not
a
dend of Eighty
Company
(Incorporated)
STOCK
The Board of Directors has this
£*
Common Dividend No. 46
The Board of Directors has declared this
the
————
PREFERRED
of business September 7, 1956.
on
September 5. 1955
Guaranty Trust Company
of New York
August 29, 1956
$1.0875
35£
PER SHARE
Payable September 29, 1956
Record Date Sept 14, 1956
Declared September 5, 1956
WEST PENN ELECTRIC SYSTBM
VINCENT T. MILES
Monongahela Power Company
Treasurer
The Potomac Edison Company
West Venn Powe?
Company 3
The Commercial and Financial Chronicle
.
Thursday, September 6,1956
v,
(1012)
40
Boom's
BUSINESS BUZZ
In
i-
on.
Behind-the-Scene Interpretation
A
from tLe Nation'. Capital
jC*. I
(Z°
•
•
M. l/li
Hi
the
Administration
the
prisoner of the
.flow
■~W: ¥
present
throw
any
spending
they cannot explain off by put¬
ting into some other category.
This rose from $1,474 million
its budget estimates for
fiscal 1957 or the current year,
fiie
Administration
has
con¬
prediction made a
few weeks ago that actual Fed¬
eral
spending,
for , the
first 1
peace-time year in the history
of the United States, will ex..ceed $70 billion.,
-t f r ^
the
firmed
'^6
$4 Billion
Rises
7*
of
the
j ;
,
re-
coincide with
views.}
own
^
■-
i
Business
1956, when
first made
Federal expendi-
Between January,
Administration
the
estimates- of
r
offset
is intended to
and may or may not
.
f<
the official orf
;
tures for the current year, and
expenditures as now
:'j; last Aug. 28, when it revised
-estimated will run to a little
these
estimates, estimated
less than $69.1 billion. However,
spending rose by more than $4
tinder
the new
multi-billionbe "sure
to
revenues
the "Chronicle's"
million in 1957.
in 1953 to $2,093
-
The
fleet the "behind the scene" inter¬
pretation from the nation's Capital
at
Administration
Eisenhower
WASHINGTON, D. C.--In re¬
of
become
boom.
y$ins of extravagance.
rl|This column
vising
has
Administration is going ahead
countenancing
a
regular
and
large rise in. spending on the
premise
that
the
boom
will
bring in a sufficiently enlarging
gJ V/^H
n
Prisoner
brief, the fiscal policy
f
"budget"
[
'
aid highway pro¬
dollar Federal
of
billion
$1.5
both
gram,
certain excises on fuel and au¬
products
tomotive
amount
spent
excluded
Just
,
but
does
present
expenditures,
1956
logically be
can
:
Add
billion
$1
to
expenditures
spending to
ma
excess
of $70' billion.
The
fact that the highway spending
this brings Federal
deprive
not
is
and subsidies for this year
■
fact
become notori¬
underestimates
now
1953, the "last Tru-
fiscal
whose rate of
government,
on, spent
$74.3 billion. However, the 1953
expenditures, in a true Federal
outlay, included highway funds
for that year, and the new 1957
it
estimates
there
was■
in
war
a
progress
was
in all national
.security spending from 1953 to
3.957,° non-security or civilian
.spending has risen by a sum
which cancels about half this
sum.
"Peace
with honor"
in
lion
cut
in
the
now
way
back
:
Eisenhower Administration
spending in the current year to
$72.7 billion or $1.6 billion less
As
of
spending.
<
There
signs
of
spending
fiscal
other
are
the
drive
interesting
virility
in the
of
the
Federal
picture.
In fiscal
1953, Federal spend¬
ing on agriculture amounted to
$2,936 million, using the Eisen¬
hower
Administration
figures
for all years in question.
This
year they will not quite double
the fiscal 1953 total, reaching
$5,744 million.
Veterans
services
and
ceed $4.8 billion.
Spending which the Adminis¬
classifies
welfare"
as
"labor
and
cost
$2,426 million in
1953, but will cost $3,001 million
this
year.
penditures
ual
one
outstanding
new
1957
government"
represent
category
or
a
ex¬
resid¬
basket
its
to
appear
to
be
ex¬
Ad¬
a
re¬
;
passed
estimate
of
aggregate esti¬
billion proposed
$48
the
words,
other
In-
lower
with
However,
this
ministration
—Federal Reserve Bank of New
York — Publication
Division,;
Federal Reserve Bank of New
York,
New York
". (paper) no charge.
•
Bank
International
for
j;
vision places U. S.
Defense De¬
partment military spending at
only $36 billion for the current
year, up only $314 million from
has pointed
,
Defense
rise by
for
these
figures
of
It
story of
the
final
nitude
on
comparable
disparity
mates
outturn,
of
with
August,
the
final
a
that
is
is
there
ing
the
the budget re¬
(1) Federal ex¬
apparent, however, that
is
no
serious attempt
to
made
The
restrain
most
to
is
have
we
that:
operations,
obtain
of.
full
esti¬
dollar of value for every dollar
1956
out¬
spent
a
department
the Government."
of
Sherman;: Ave.,
111. (paper)
Regulations
Funds
-
States
—
Basle,
Social
Evanston,
50 cents.
Relating
Control
Foreign
to
the .(United
in
— Bank
Settlements,
Supplement 13
International
for
"We
1955,
every
1718
Foundation,
Research
Sharing
;;
past,
the
by
and
the
efficiency
the
improve
in
Suggested
A
List for Businessmen
with
a
comprehensive Bibli¬
ography—J. J. Jehring—Profit
expendi¬
with
turn.
Hull
N. Y.
Reading
Adminis¬
the
promises
&s
Profit-Sharing
be¬
will continue to exert every ef¬
fort,
mag¬
67,
current fiscal year.
the
tures.
August estimate compared with
York
; Problem—Wilfred Owen—The
Brooking Institution, 722 Jack¬
son Place, N. W., Washington 6,
D. C.
(cloth) $4.50.
tration
between
3070
Company,
New
(paper), $1.50.
budget
penditures are sharply on the
rise, (2) that it is anticipated
that the current boiling boom
will bring in slightly more rev¬
enues than expenditures.
disparity
a
Ross
Metropolitan Transportation
vision
$2 to $3 billion, and
alone
account
S.
reports
The
military spending is thought by "
impartial observers to be likely
Invest¬
as
ments—Sidney S. Ross—Sidney
out.
newspaper
the
for
Department
Stocks
revision have
stressed, as the Administration
has stressed, a
prospective
budget surplus of $700 million
Daily
of
.
? ?;'•,> .W'.'v ;/
•
Life Insuraance
Avenue,
"Operation and maintenance
costs are increasing due to the
growing -number
of complex
new
weapons and techniques,"
\1 stated the budget review. "De¬
spite savings from improved ef¬
•
ficiency/these costs can be ex¬
pected to continue rising
as
more
modern
equipment is
placed in the hands of our mili¬
tary forces."
<
fact
.££ francs) i
Picture
Revenue
actual 1956 outlays.
In
past
or
unspent appropriations, as Sen¬
ator Harry F. Byrd
(D., Va.),
Settle-
Switzerland
H (paper); 2.50
S w is s
francs
(complete compilation 90 Swiss
Basle,
■
plus of "backlog"
Y.
/■ vi-
Great Britain—Supplement
1;ments,
in addition to the some $40 bil¬
lion
- n
Exchange Regulations in
12—
Foreign
appropriations are on top of or
by the three services of the De¬
fense Department, the latest re¬
N.
45,
„
anticipated
Switzerland
Aspects-of
(paper).
Retirement—
Otto Pollack—Richard D. Irwin,
"
Inc.,
Homewood,
$1.25.
" * -
111.
(paper)
-
TRADING MARKETS
Botany Mills
A. S.
farm
prices,
in
ing
money.
tures
the
Fashion Park
year
to
than
be
Morgan Engineering
sav¬
in
$830
1956.
are
National Co.
Carl Marks
now
million
This
resulting from
is
FOREIGN
a
TEL:
•
Commodity
&
Co Inc
SPECIALISTS
NEW YORK 4, N. Y.
HANOVER 2-0050
TELETYPE NY 1-971
Riverside Cement
Sightmaster Corp.
LERNER & CO.
Investment
10 Post Office
(2)
of about $320 million
regular
SECURITIES
50 BROAD STREET
(1)
billion for
soil bank program,
decline
the
not
expendi¬
1957
about $1.0
of
new
is
"Budget
fiscal
increase
rise
United States Envelope
Ad¬
admits
agricultural programs
for
estimated
more
it
;
Campbell Co. Com.
Indian Head Mills
the
time
candidly
this field
that
the
>
will exceed slightly
expenditures of just
less than $69.1 billion.
price supports were in fact more
costly.
a
;
appro¬
substance, and refused to admit
that
(paper) $5.
36; N.;^Y;
Money and Government Secu¬
rities Markets—Robert V. Roosa
priations
and
Pro¬
Federal Reserve Operations to the
estimated
new
Information
2 West 45th Street, New
price supports, it had the
farm
in
York
Electric Compa¬
—
Public
gram,
appropria¬
1956
—
nies
by Congress, the
of expenditures
suggest an unrealistic conserva¬
tism. Appropriations passed by
Congress
for the
1957 fiscal
year, plus anticipated deficiency
requests, will aggregate $69,273
million, compared with $66,780
million actually voted for fiscal
These
In the face of
mates
to
1957
1956.
Com¬
Eiectric
it had the form of flexible
cause
into
the
?
to
in
the
has pretended
in
estimates that be¬
budget
a
and
,.
Eisenhower
the
ministration
for
past
the
respect,
observers
Hitherto
istration
the
with
■
estimates
informed
which both the Truman Admin¬
in
\
tremely low,'
The exception is
with respect to farm benefits.
net
"General
■
matter of fact, except
a
bene¬
fits, which in 1953 cost not quite
$4.3 billion, this year will ex¬
tration
on.
Estimates Appear Low
through
rate
War
Korean
1953
fiscal
the
than
$10 bil¬
in
reduction
this
these
billion, and
probably will amount to
more,
a conservative comparison will place
1957 spending at
$71.7 billion plus $1 billion, or
$72.7 billion. This would bring
security spending;
Administration
has
its
worked
Ihalf
If
not.
do
they
$10, billion
Korea made possible a
war
amounted to only $1
Amounts.to is that despite a cut
,
the
the Korean
with
spending, even if
only a "police action,"
xiyaled the outpouring of funds
for World War* I.
What this
of
year"
man
only
It is
accurate.
relation
tions
Military Spending Low °:'i;
budget
In
it,
$5,744 million for farm benefits :
is in
port, that they are not griev-y
ously underestimated as in the
past.
then
—
expenditures would
be
added
$2.6 billion, r which
would
bring admitted budget
expenditures
for the current
year to $71.7 billion.
of
its "net" economy in
Federal spending for fiscal 1957'
ias compared with fiscal
1953,
Truman year," is $5.2 billion.
^However,
during
fiscal
1953
puts
f
request).
on
From
panies Public Information Pro¬
-
predict that the
1957
Aug. 28, 1956, estimate
fiscal 1957 of $69.1 billion
for
billion-dollar
Administration
ago!"
In
Gov¬
the
same—and the Adminisnow
Finder
Fact
Appropriations Picture
,
This is not to
■
the
to
of
Administration's estimate of
for
ous
Compares With 1953
the
the
activities
I
tration has
item.
As
years
sup¬
ernment."
billion short of the
They underesti-
If their record for fiscal
this spending
little
cultural
by that much.
mated
100% Federal character,
for the money will come from
the same place, the taxpayer,
sod go out from the same place,
the
Treasury,
as
any
other
piddling
of my wife about thirty-
me
gram
price
Corporation
Credit
actual figures.
its
■of
they
fell just $2.6
is called "trust account" money
does
five
parable estimate of a year ago
the
Administration's
officials
and
billion,
$69.1
of
spending
Earnings
—
J (quantity prices
■22—36—Reminds
placed the actual spending
port and commodity purchase
at $66.4 billion.
A
J H.* program, and (3) an increase of
In other words, in their com- y
$150 million for all other agri¬
of highway
the "budget"
the
Machinery and Al¬
lied
Products
Institute,
1200
Eighteenth Street, N. W. Wash¬
ington
6,. D. r ;C. v (paper)
$1
year
much higher. >
oh
Methods
Terborgh
estimated fiscal
1956 spending at $63.8 billion.
The July 19 statement of this
time
that
$740 million." In other words,
they should conservatively total
$1 billion and
tion
in August,
ago
year
one
New Tax Deprecia¬
Effect of the
the Budget Bureau and
the Treasury put out their re¬
vision
of
the
January,
1955,estimates
for
fiscal
1956.
At
they "will be substan¬
higher than the actual
budget
expenditures of
year
tially
1
1955,
the
for
that
49 East 33rd Street;
: New York 16, N. Y (cloth) $3.50.
Brothers,
1957.
cal
Capitalism, The —•
—
Harper &
of
Julius T. Wendzel
.
question arises as to how
new spending estimates
are
likely to be in relation to
the actual performance for fis¬
Curiously, the Administration
does not appear to give a new
and current estimate of high-:
way
Dynamics
r -
firm the
i
made "trust account"
admit
.
two
The
budget and
operations.
the
was
firmly in the hands of the
ures
estimators.
■
highways are
on
from
the revision
only
about
Yet
with
made
J months of 1957 fiscal year fig- *
the
and
billion.
i
>
ftwftriiir
V.
•.•■•...-i
Securities
Square, Boston 9, Mass.
Telephone
Teletype
HUbbard 2-1990
BS 69
@FedFRASER