Full text of Commercial and Financial Chronicle : September 8, 1955, Vol. 182, No. 5462

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university
of michigan

1955

SEP 9

ESTABLISHED 1S39

TiON

administration g

siness

LIBRARY

The Commercial

an a

Financial
Reg. U. S. Pat. Office

Volume

Number 5462

182

New York 7,

Price 40

N. Y., Thursday, September 8, 1955

Cents

Copy

a

EDITORIAL

The Nation's Farm Problem

We See It

As
Few matters

are

public interest than taxation;
out. When the Eisenhower

office

into

it

set

about

a

in and

year

Administration

broad

and

Consulting Economist

Sec'y Benson discusses the farmer's declining share of

Mr. McFall maintains wealth of available statistics, in

\

the consumer's dollar in the

forcing

comparisons with discarded past, omit real

i

a

none are more con¬

sistently bedeviled with politics

year

dising

expenditures

parity ratio

keeping with receipts
taxes

was

advisable.

stem the tide that at

no

It

once

not

reasons—was

There

reduction,

of the

deadly

current

A

operations

is in

as

we

individual

a

150

do

in

records

in

cyclically for another

year,

DEALERS

and

a

in

we

were

depression

a

a

year

boom today?

a

statistics

total

the state of

on

have

but

we

our

economy

standards?

any

Our

has advanced by less
than 5% in the last year. Does that

the

Department of Agriculture, the State

economy

mean
a
change from depression to
Services, most of the state
boom? From 1929 to 1933 our econ¬
and private industry,
also
omy
lost
about one-third
of
its
compile volumes of statistips
activity; sthat was a real depression.
relating to agricultural production,
marketing, costs, profits and a vari- / But even the drop of about 5% from
1953 to 1954 did not mark the eco¬
ety of other items.
Taking all of
nomic stability that we might and
these calculations and properly re¬
should enjoy.
impossible to make an accurate and

Extension

governments

Taft

Ezra

lating

Benson

them,

it

detailed analysis of our farm economy at any
I would

given time.

The

emphasize, however, the importance of prop¬

in

pundits who see a depression

mild decline in our economy
us
to
assume
from their

any

erly relating and evaluating all of this information. Some

expect

few isolated figures and attempt to
prove that agriculture is in a depression much like that
of the 1930's. Tt is possible to cite other statistics that
show
farmers
are
enjoying unparalleled prosperity.

laments

that

the

start

people seize

♦From

Day,"

an

upon a

of

III., Aug. 25,

a

boom

follow

the

of

they
boom.

a

real

expect
Is

decline

Dr. Robert J. McFall

is
When

depression,
us

there

no

they warn
that a bust will
to banish this emo¬

think

to

way

tionality— this psychology of fear — from the analyses
of the state of business and to give us a dispassionate

Benson at "Pantagraph Farm and Soil

address by Sec'y

Bloomington,

but

mild

the

1955.

Continued

26

on

page

Continued

18

REGISTRATION — Underwriters, dealers, and investors in cor¬
afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 31.
securities

are

on

page

22

State, Municipal

in

and

U. S. Government,
State and

Municipal

Securities
telephone:

HAnover 2-3700

The

September issue of our

STATE

Public Housing Agency

MUNICIPAL

AND

COPIES OF OUR

INVESTMENT LETTER
features

a

natural

resource

NEW

BONDS

stock

CHEMICAL

Request

on

J. R. WlLLISTON & CO.
ESTABLISHED
MEMBERS

ANO

department

30 BROAD ST., N.Y.

115

OTHER

NEW

STOCK

YORK
AND

llll

STOCK

COMMODITY

Beach

—

Rye,

OF NEW YORK

EXCHANGES

Broadway, NewYork 6, N.Y.
Miami

THE FIRST NATIONAL CITY BANK

EXCHANGE

N.

Bond Dept.

T. L.WATSON &CO.
1832

ESTABLISHED

THE
Members New York Stock Exchange

Teletype: NY 1-708

Y.

Net

Active

Dealers,

and

Brokers

CANADIAN
Commission

Orders

American

Stock

Executed

On

NEW YORK 4,

N. Y.

CANADIAN

DIRECT

WIRES TO

Dallas




BANK

coast

General Gas

Analysis
.

MONTREAL AND TORONTO

Pomdoon Securities

•

PERTH AMBOY

request

NEW

YORK

STOCK

EXCHANGE

Members New

Grporatioh
40 Exchange

IRA HAUPT & CO.
and

Place, New York tS, N.Y*

other

115 BROADWAY
NEW YORK

1 NORTH

LA SALLE ST.

111

CHICAGO

Teletype NY 1-702-3

WHltehidl

4-8161

Boston

York Stock Exchange

Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000
BRIDGEPORT

upon

»

DEPARTMENT

Goodbody & Co.
MEMBERS

COMPANY

FIRST

to

Canadian Exchanges At Regular Rates

Exchange

STREET

coast

BONDS & STOCKS

Industrial Bonds,
BROAD

from

AH

Teletype NY 1-2270

25

offices

Chase Manhattan

YORK 5

CANADIAN

.

New York Stock Exchange

BROADWAY, NEW

Maintained

Markets

Banks

34

SECURITIES

Members

Preferred and

DEPARTMENT

REQUEST

HARRIS, UPHAM & C°
120

To

Common Stocks

I

BOND

BANK
bond

Bonds and Notes

ARE NOW AVAILABLE
ON

CORN EXCHANGE

BOOKLET

"ATOMIC ENERGY
REVIEW"

Copy

,

*

boom.

SECURITIES NOW IN

porate

>

economy

And by what standard are we
We have countless

ago?

the

but

>

Concludes evidence shows (1)
a boom, but activity

years.

what yardstick

By

'

Not only do farmers

States.

i

ago the pundits lamented that our economy
depression. Today they warn that it already

year

in

was

country keeps
books
on
agricul¬

elaborate

maintain

of the nation's

page

depression..

and (3) over
the long-term future it will continue to grow "stabilized"
at the rate of an upward line of Normal Expectancy.

other

tural

security than taxes will ever be. ... I know that
the American people would not favor placing
on

no

such

United

now on

Continued

for the future.

Probably

carefully appraised.

enemy

or

business does not manifest

will advance

agriculture stands
course it may best

just

chart

much
"When the
economy is operating at record-breaking levels,"
he said the other day, "the inflationary impact
more

normalcy, boom

goal should be stability of growth rather than

our

the past

over

as

*

considerable misunderstanding
agricultural situation and of the choices

where
today and what

stronger ground than he was in 1953.

a

measure

Asserts there is a simple mathematical A;
order in the growth record of our economy, which shows
i
that it has followed a mathematical trend of development

be

to

Republican political

Representative Reed is

to

of stagnation.

the farm

agriculture's soundness.

see

credit for politically appealing tax
cuts next year when the voting takes place in the
Autumn.1 Now it is—of all people—Daniel Reed
of New York v/ho warns against tax reduction in
advance of a better budgetary position.

Inflation is

Holds

mar¬

confronting us in planning for the future. First, I pro¬
pose that we take a look at the farm balance sheet. Let
us
attempt to cut through some of
the conflicting facts and fancies and

Daniel Reed of New York.

should be

on

standard

more

of agriculture's well-being.

measure

appears

current

selves will get

of tax reduction

Stresses need to reduce

some

;

slightly below "the dynamic normal"; (2) the

figures have now been hinting at, almost promis¬
ing, tax reduction next year. A glowing report of
reported prospects for substantial budgetary
balancing has been issued in Washington. Demo¬
cratic politicians appear to be chiefly concerned
lest the Administration rather than they them¬

We think

toward'

entirely able to

set in for tax

For several weeks various

a

as

indicative of

but it held out fairly well. Among those who in¬
sistently demanded that taxes be cut regardless
—and, it seemed at the time, for admittedly

political

trend

tively low level of farm debt in relation to assets

general reduction of

was

the

emphasizing

Points to strength in farm real estate and the compara¬

in

more

light of changing merchan¬

keting and distribution costs and comments

pervasive

were

methods,

"built-in maid services."

came

rewriting of the Federal tax laws. It took the
position that until

Stability?

or

By ROBERT j. McFALL

Secretary of Agriculture

deeply affected with

more

Boom

By HON. EZRA TAFT BENSON*

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle

2

cd8l

(970)

For Banks,

>:f

The

Brokers, Dealers Only

Express

American

Security I Like Best

A continuous forum in which, each

Central Telephone

in the investment and

Dan River Mills

Hycon Mfg.

they to be regarded,

CHARLES

"Let

your

come

Tennessee Gas Transmission

can

all

pay

pay

of

part

or

Telephone

of

any

dent, Wm. H. Tegtmeyer & Co.,
Chicago, 111. (Page 2).
Life

with

client

a

i t h

w

following

the

pro¬

a

of Northern Il¬

Corporation

linois Gas Co.,

American

which

1920

Stock

and

com¬

Exchange

5

Teletype NY 1 -40

12

or

wealth Edison

without

Northern

a

around

Wires

Principal CitieI

to

investment? It

gle

Charles G. Scheuer

primarily in

Rights & Scrip
Since 1917,

Members

American

120

Stock

Stock

counties

other

Illi¬

include the

of

number

limited

a

about 850 premises.
Northern

has

Co.

Gas

Illinois

2-7815

expansion

an

in

now

which

program

operation, and has
of $ 19,000,000.

reserve

is

liquid

a

in cash and

Residential sale3

thisj expansion.
of

gas

Trading Interest In

first

American Furniture

Bassett Furniture Industries

because

the

in

of

Camp Manufacturing
Commonwealth Natural Gas
Dan River Mills

Insurance Co. of Va.

use

involved
That was in
Today he would hold a very

Lynchburg, Va.
LD 30

TWX LY 77

adjacent

131,000

this

of

fast

as

permits to

demand

communities

the

served

industrialized.

Since

manufacturing

and

heavily

are

there

1940

substantial

been

are

possible.

as

areas

has

ap¬

additional facilities

care

being added

increase

house-heating
are

file for

on

1954

over

outlay of $16,700.

increase

little over $672,000.

sort

What

this?

is

business

of

fact, is

value of the dollar. It
free from inventory and labor

problems. It enjoys tax protection
manufacturing en¬

no

In 1954 life insurance
force, which represents source

terprise.
in

had
attained
the
amazing
total
of
$339
billion.
Thirteen years nreviously, the to¬
tal stood at $122 billion.
This is
earnings,

.of

nearly

increase over a
years.
As national

300%;

a

of 13

period

its

rises

income

forward

in

to

make

is

a

growth

moves

I hesitate

unrelentingly.

Botany Mills Common
Carlisle Corp.
Dover

Corp.

Giant Portland Cement
Warner &

Swasey

groups

ESTABLISHED

37 Wall St., N. Y.

jor industrial

but here

this statement,

For Financial Institutions
MARKETS

Philippine Oil Development
Lepanto Consol. Mines
Mindanao Mother Lode Mines

Marinduque Iron Mines

M. S. WIEN & CO.

1

of

uses

gas

Ma¬

in

the

Tel. REnderson 5-940#
Teletype J CY 783
New York City Telephone
BArclay 7-0045




to

12

of

fabrication

metals, heat treating and smelt¬

the threshold of

12

per

share for the last

months ended

$1.17.

were

950

is the business of
and

opinion
in

the

stocks

as

Again I
"Let

come

can

pay

insurance

which

is

Counter and

on

Exchange.

have

is

increased
As
of

not

added

an

kept

pace,

indication

above

an

Establised

H. Hentz & Co.

medium

average

1856

of

business available.

Members

participation in the life insur¬

New

York

Stock

Exchange

group, I have confined my
interest largely to
the stock of
one of the relatively smaller com¬

American

Stock

New

Cotton

panies,

Chicago

ance

although

of

insurance

1

assets.

the

or

and

one

size

force
in

billion

a

half

a

and

highly

looking

a

the

two

reported

Aetna

toward

its

This

gain

he

has

I

Chicago
Hollywood,

the

the

of

ORRadio

no

passed

since

distribution.

Par¬

ticipating insurance is practically
nil and earnings year in and year
have

out

been

impressive.

little under $30
the

$11

years,

in

Of

a

share earned

per

past five

paid out

cash

have

dividends;

the remainder plowed back in in¬
vestment

CaL

Switzerland

Amesterdam,

be fully
while

to

thrill

have

stock

Gables

Hills,

Holland

en¬

since

last

Beverly

•

Geneva,

Pittsburgh

•

Coral

•

Fla.

N. Y.

4,

Detroit

Beach

stockholder.

appears

years

Exchange Bldg,

YORK
•

Miami

This

reserves.

is

-

Industries, Inc.

Outstanding Growth Company
In the

signs

Five

Cotton

NEW

con¬

1920, there still are
of capital dilution with
but 650,000 shares currently own¬
ing the company.

in

Y.

by the fact that

enjoyed

Exchange

exchanges

and

less than eight stock dividends or„

splits

N.

fas

record

future

the

for

opinion

supported

other

Inc.
Trade

of

The

vision ample expectation for
tinued

by

Life.

satisfactory

and

15

quar¬

]ike. nevertheless

I

comnany

against

Exchange

Exchange,

Board

force

Travelers'

billion

Exchange

New Orleans Cotton

and

three-quarter

to

Commodity

in

"smaller"

million—assets of

Travelers

a

in

term

compared

of

and

in

of insurance

sense

more

ter

the

use

totalling
billion

tenth

York

Sales

in

1954

previous
double

Magnetic Tape Field

year

were

and

1955.

in

80%

up

over

expected

are

ORRadio

to

is

a

pioneer in magnetic tape produc¬
tion and research.

mended
For

this

for

your

copy

growth

Stock is

recom¬

capital appreciation.
of

report

our

company,

on

write

the

S. D. Fuller & Co.

WHitehall 3-0066

1943,—now

total of $247,000.

is your

give the in¬

results.

In

my

in dividends

well

as

growth

a

quarter of

indicated.

company

pay

a

or

part of

traded

Recent quotation 22Vs.

last

1950,

has

effected

for

$2,100,—now 500 shares worth

benefit

of

115

share

per

were

or

The

$57,500.

Aetna Life, Connecti¬

Lincoln National and

that

tinue?

No

more

was

two years ago
stood
are

still

at

a

I

con¬

million

-

But

the

here

three-

mark and

a

growing

all?

today's

value of

This

Well, we

population,

a

the

to

company's

held

since

stock¬

1920

market,

over

is

the

have

have

it

on

as

well

the

growth

as

record

basis

total

of

its

the

Market and is

Over-the-Counter

Quotation Services
for 42 Years

the

of

Life

T

I favor

past record

for its continued future

potentials.
in

a

$900,000.)

Insurance Co. of Virginia.

traded

moving forward.

value

grown to over 6,000 shares which,

myself

when the val¬

$220,000.

What's behind it
have

than

approaching
of

m&y

this

and

Teletype NY 1-4777

in

holders. (One hundred shares pur¬
chased

at

Monumental.

this

place

phenomenal

in principal

others

which—a

of

distribution—took

growth

ues

the Midwest Stock

million. Then

the

100%

took 100 of Jefferson National

your

Over-the-

There

of funds for cash dividends.

source

we

quarter
stock

Broadway,N.Y.6 COrtlandt 7-5680

splits,

in

gas bill."

The

111

and

Annual

Cash dividend in¬

all

splendid

1,300 shares at 190

1954.

Doubtful

bills.

Brokers & Investment Bankers

"Chronicle"

many

39 Broadway, New York 6, N.Y.

we

your gas

of the
the

from

1897

frequency of stock dividends

say:

gas

Established

Home Office Tokyo—70 Branches

The

appears

your

biological

a

Securities Co., Ltd.

Assurance,—100 shares for $4,000

One was Continental

cut General,

marketwise

So here, in

year.

with

increase

an

hypothetically

we

Yamaichi

to 10 seconds

seven

risjes that have occurred. Yet on
a
percentage basis, sales of life

been

companies

each

write

or

compares

should

future

which

of

Call

on

appears

purchased?

for

excellent

vestor

in

of Japanese potential.

1955,

800 per share.

are

investment

six

the

are

bid for

stock

re¬

investors with knowledge

March 31,

This

share

per

whose

on

comfortable

a

ourselves

baby

>

to investors with vision—

articles that have appeared in re¬
cent
issues, of the tremendous

10

relatively few.

are

What

brief

a

companies,

stock

its

ing operations.

This

insurance

there

in

and

found

years

life

processes,

Security Dealers Ass'n

Exchange Place, Jersey City 2, N. J.

selection

blind

tirement.

refining

have made a

probably could

we

011

1919

Members

New York

primary

of stocks from which

group

territories include gas production,

This

Established

largest industry

machinery,

1929

Tel. HAnover 2-4850

TRADING

and

metals, and food processing.

dividends

FIRM

three

are

Earnings

^reenaecmiCompcmu

plants

The

ment.

Trading Markets

of

have unusual appeal

may

less

Further statistics

new

readers

know,

no

number

offices

SECURITIES

now,

Bureau

peop'e

business with

a

come,

in

the falling

a

of

On the subject of spendable in¬

impulses of our people. It is tied
growth in population and

in with

As

subsidiary.

point

available to

branch

our

JAPANESE

comprehension—re¬

my

scene

First, it is basic to our prosperous
economy end the thrift

American

in

both

actually

quarter of a million, but
a

worth,

of this writing, not a

time

at the

employ¬

activity

six companies,

of the same

Mobile, Ala.
Direct wires to

peo¬

of a£e—a substantial

throughout the

increased number of shares

have

would

This

cuss.
an

is

of

There

Many of

&C0.,fnc!

1955

substantial

a

and

gas,
take

to

of

number

plications

higher in the

35.7%

were

quarter

customers.

STRADER JAYLOR

companies engaged
about to dis¬

six

of

stocks

in the business I am

U. S. securities towards financing

Life

to fall

enough

1943.

appliances and heating

Exchange

REctor

been gullible or for¬

have

would
tunate

Northern

in

Other activities

sale of gas
service to

Exchange

BROADWAY, NEW YORK 5
TEL.

over

individual

no

much

jffipONNELL&fo
York

to

gas

the

that

Admitting

MY 1-1557

1954 to

same

54,000,000

vears

that

veal

W. Snyder

Everett

done."

be

can

HAnover 2-0700

New Orleans, La. - Birmingham, Ala.

1975

by

this

of

some

—beyond

for such a
600,000
customers in over 232 fantastic representation, let's, for
communities and adjacent areas the sake of argument, assume that
located in Cook County outside of some fictitious Mr. X had given it
a
try.
He
would have taken
the City of Chicago and in
16
aboard
100
shares each of the
nois.

New

of

sale

and

bution

distri¬

production,

purchase,

and

market in itself.

change in
your
initial

Illinois

our

of July

as

206,000,000.

figures

than 18

sin¬

Gas

Co.

the

Specialists in

the

10

Co. is engaged

Private

•

low¬

a

this
figure, according to their calcula¬
level
of
tion, will approach a

years
a

minds of

162,414,000

show

Common120 Broadway, New York
WOrtb 4-2300

the

in

population

be

a

in

million

Exchange

The Bureau of Census estimates
our

of

New York Stock

ple.

"Do

want

quarter

is an outgrowth of

higher spendable income,

ering rate of mortality ard, of far

imbued

have $16,000 or $17,000

pany

Members

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

about

this:

Steiner, Rouse & Co.
Members American Stock Exchange

tors, the desire for later security

you

Member

Co., Syracuse, N. Y.

greater import than all other fac¬

de¬

skepti¬

sented

like

Established

&

the

posal, he would have been looked

with the stock

Associate

Company of Vir¬
ginia—Everett W. Snyder, E. W.

(Page 2.)

in

Bought—Sold—Quoted

Insurance

Snyder

us

Louisiana Securities

Scheuer, Vice-Presi¬

securities business had approached

New York Hanseatic

I

nor

have been pre¬

ction

n e

be,

cism. It would

good effect in
c o n

1943,

in

justified

above "Ad" to

Western Light &

Alabama &

Selections

Illinois Gas Company—

Charles G.

Snyder & Co., Syracuse, N. Y.

W.

gree of

the

used

to

Northern

Life Insurance Co, of Virginia

upon

,,

firm

Our

particular security.

a

intended

not

are

If,

company

bill."

your gas

has

United Artists

E.

Cash dividend in¬

bills.

gas

your

Mfg.

Week's

Participants and

Their

EVERETT W. SNYDER

Company

gas

of experts

group

offer to sell the securities discussed.)

rf'Kinptil

National Union Fire Insurance

Steel

as an

Tegtmeyer & Co., Chicago, 111.

Northern Illinois Gas

different

a

for favoring

SCHEUER

G.

v if'f1*!

Wm. H.

Mansfield Tire & Rubber

Rockwell

reasons

(The articles contained in this forum
■re

Holly Corp.

Portsmouth

week,

This
Forum

advisory field from all sections of the country

participate and give their

Haile Mines

Long-Bell Lumber of Mo.

Thursday, September 8, 1955

...

'i 1 ?

The

stock

National Quotation Borean
Incorporated

is

Established 1913

Over-the-Counter
46 Front Street

currently qupted at

approximately $150

per

share.

CHICAGO

New York 4, N.
SAN

Y.

FRANCISCO

Volume

Number

182

5462 ;.

.

The Commercial and Financial Chronicle

The Unwanted Censor
SEC's
'

1

proposed

censorship of

extended

is

Existing safeguards adequate.

press.

rent related powers

Commission's

Articles and Newa

if
Boom

-

"THE

SION

HAS

MERITS

NOT

IN

ANY

COMMIS¬

EXCHANGE

AND

WAY

PASSED

UPON

THE

New Developments

—Robert

HEREIN,

THIS

UPON

' —Roger W.

Edmund

A.

Keeper—Alexander Wilson
sN '

the

Alec
to

J.

Keller, Former SEC

^

judge

called

are

proposed

subtle

F.

Atwater

Notes

(Letter to

of Boston

machinery which

extension

of

As We
Bank

See It

and

38

(Boxed).

limiting the

its

powers

the Commission

scope

of this definition, the

'solicitation' shall include the dissemination,, distri¬

publication by or on behalf of a participant . . .
advertisements, scripts, speeches, ad¬

was

reprints of other materials whether such
originally prepared or issued by a partici¬

pant in a solicitation or otherwise."

carefully considered the enormity of this proj¬
master censorship is staggering. For example, if I
a member of management and came across a newsContinued

From

on

page

V

NSTA

Notes

News

About

Nashville

•




*Circular

on

Request.

21

;

Banks

Chicago

Schenectady

•

•

and

Glens Falls
Worcester

250

more

over-the-counter securities

&

Wilfred

14

__

May

5

_____'

Mackie,

inc.

40 Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1826

Direct Wires

t

i-

to

Philadelphia • Chicago • Los Angeles

39

Securities

Railroad Securities

•

20

Our Reporter's Report

Utility

Singer/Bean
HA 2-0270

Bankers

21
1

_.

Securities Now in Registration

American States Oil

24
31

__

Fifteen Oil
Security

Prospective

Securities Salesman's
.

.

.

and

Offerings

36

Corner.

Guild Films

19

You—By Wallace Streete

16

Jessop Steel
The Security I Like Best
The State of Trade and

2

Industry

Keta Gas & Oil

4

,____,

" '/

,

Washington and You__

Twice

40

Weekly

COMMERCIAL

1

B.

DANA

Place,

HERBERT

D.

WILLIAM

COMPANY,
New

2-9570

SEIBERT,
DANA

York
to

Copyright
Reentered

Publishers

7, N.

ary

25,

Every

SEIBERT,

President

135

the

post

South

La

Salle

.

'

Corp.

Eng-

matter

office

Febru-

at

New

St.,

jDl. (Telephone STate 2-0613);

m V. FRANKEL & CO.
INCORPORATED

Rates

of

39

BROADWAY, NEW YORK 6

Pan-American Union, $55.00
of

Canada,

Other Countries, $62.00

lf,C?fd.\r.rra"0" nrs; bank clearin6s'
and city news, etc.).
Offices:

C.

Editor i Publisher

Thursday (general news and adIssue) and every Monday (comissue — market quotation

3,

second-class

at

Subscription

state

Other

E.

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

Y.

statistical

Chicago

London,

'

laSS^byWUliam B. Dana
as

1.042,

9576

Thursday, September 8, 1955

vertising

Gardens,

Lithium

land> c/0 Edwards & Smith-

and

CHRONICLE

Reg. U. S. Patent Office

Park

Drapers'

Dominion

TELETYPE N. Y. 1-5

We maintain trading markets in
than

8

—

Observations—A.

ST., NEW YORK 4, N. Y.
•

7

11

Our Reporter on Governments

New York Stock Exchange

•

Standard Sulphur Co.

28

WILLIAM

Boston

Recommendations

Mutual Funds

plete
•

Pacific Uranium Mines Co.

30

PREFERRED STOCKS

Spencer Trask &. Co.
Albany

Hycon Manufacturing Co.

Indications of Current Business Activity.-.

FINANCIAL

TELEPHONE HAnover 2-4300

19

Washington Ahead of the News—Carlisle Bargeron

REctor

BROAD

Mills, Inc.

40

Stocks..

Einzig: "Over-Full Employment in Britain"-.

25

25

Dan River

Gulf CoastLeaseholds, Inc.*

8

The

Members

in

Cover

Dealer-Broker Investment

Published

specialized in

office

City

38

(Editorial)

Insurance

The Market

When

For many years we

branch

Lake

'

of letters, releases,

and

Teletype: NYl-4643
to

Salt

8

Public

have

Direct wire

Concern Over

Coming Events in the Investment Field

the SEC 'contem¬

the complexity and multiplicity of
definitions of the term "solicitation" as enumerated by the
SEC; however we must give you the following part:
"Without

Broadway, New York 4

DIgby 4-4970

than 10 days' notice, and

no more

on

We shall spare you

were

42
29

Notes Growing

City Stock Exch.

Spokane Stock Exchange

Semi-Centennial

Editor)-

Business Man's Bookshelf

connection therewith.

ected

Babson's

Roger

Members Salt Lake

Corpus Christi Refining Co.

The SEC of course!

aspires to define what constitutes a proxy solicitation, and
thus to place itself at the pinnacle of judgment so that it
may judge of what material may or may not be used in

material

J. F. REILLY & CO.
14

of

plates setting up is a poor, ineffective, cumbersome and
altogether unnecessary addition, to the remedies already
existing in our courts.

dresses

7

mislead.

or

stupidity of all of this becomes quite apparent
we
consider that thousands of corporate annual

or

6

Rising Debt

-

term

Expresses Opposition

First National City Bank's "Letter" Cites Areas of Danger in
Present Prosperity

First National Bank

The

bution

Attorney,

Proposed Regulation "A" Amendments

Hubert

which

•of whether the data is factual?

In

Corpus Christi Refining

3

Regular Features

Material

the

Official Films

•

Corporation Department, Is Dead-

,

directly or indirectly impugns
character, unless factual data supporting such assertions
are filed with the Commission.
Who is to be sole judge

that

■'

William Michael Cahill, Former Editor of "Chronicle's"

.

relevancy.

meetings

16

The Unwanted Censor (Editorial)

;

misleading:

sole

Shawano Development

$.

■■

Ballyhoo via Walter Reuthcr

as

*

■

cial results.

when

$

;

<

(1) Predictions of specific future business and finan¬

(3)

12

■,

Anniversary

Commission

Maule Industries

Other Problems in Proxy Contests

•:

material should be furnished.

with, the

Chesapeake Industries
■

12

__

Stephan

Am I My Brother's

right as it relates to certain corporate
including, at annual meetings, the retention or
ejection of current management, who cares what the SEC
thinks about the contents of proxy material?
Isn't the legend itself a deception, for doesn't it imply
that the SEC has the power to pass upon the merits of and
give approval to matter described in proxy material when
in fact it does not have, and never did have such power.
This release would fix how, when and by whom proxy

course

Centers

.' "■ '/[<\

Conflicting—Joel B. Dirlam
Some Legal and

them exercise that

Of

-•

WHitehall 4-6551

Sherman Anti-Trust and Robinson-Patman Acts Not

affairs

(2) Irrelevant statements which confuse

*

STREET, NEW YORK

OF

addled-pated concept. When we consider
material is addressed to the owners of securi¬
enjoying the right to vote for the purpose of having

as

WALL

Telephone:

11
"j

/;

an

Among other things it would condemn

Obsolete Securities Dept.

10

Babson
1

'■ "7

Stock Market
'

•'

that proxy
ties

9
99

More Money in Real Estate Than in New Shopping

TO THE CONTRARY IS A CRIMINAL OFFENSE."
Here is

OBSOLETE

9

—Keith Funston

:

not

5

Credit: A New Look at Its Role in the

ANY REPRESENTATION

PROXY STATEMENT.

Clark

—Edward T. McCormick

]

are

Till you check us!

in the Investment Company Industry

Creating Confidence in Canadian Securities

THE COMMISSION

HAS

NOR

ACCURACY OR ADEQUACY

THE

E.

Securities

4

&■.

,,

PASSED

Cover

IIow High Is the Stock Market—John M.
Templeton

OF, OR GIVEN APPROVAL TO, ANY MATTER

DESCRIBED

Cover

_,r.

American Gas & Electric Company—Ira U.
Cobleigh

a

SECURITIES

Stability?—Robert J. McFall

The^Nation's Farm Problem—Hon. Ezra Taft Benson

Exchange
"proposed amendment of proxy
rules" under the Securities Exchange Act of 1934.
This release and the accompanying notice is contained
on some 12
single spaced typewritten sheets.
The Commission would make it mandatory with
respect to listed companies that there be set forth on the
outside front cover page of every proxy statement the
following legend in bold type:
offers

or

i /

cur-

should be revoked.

In its Release No. 5212 the Securities and

Commission

»licHTtnsTfiii

Page

AMD COMFAHY

against the public interest. Violates freedom of speech and of
the

INDEX

%.-•

material

proxy

3

(971)

Other
Bank

and

per year; in
$58.00
per
year.

per

year.

Publications

Direct

Record — Monthly,
(Foreign postage extra.)

Note—On account ot the tluctuations in
rate

3-3960

1-4040 & 4041
Wires

to

Quotation

$37.00 per year.

the

WHitehall

Teletype NY

of exchange,

remittances

for

eign subscriptions and advertisements

be made in New York funds.

for-

must

PHILADELPHIA

DENVER

SALT LAKE CITY

4

The Commercial and Financial Chronicle

(972)

ergy Commission at 3.8 mills per
kw.
11' you
want to learn how

American Gas and Electric Co.

to

Twenty-five years ago the num¬
one equity, the top blue chip

Ten

plants supply
this rich, thriv¬
ing, growing, highly industrial¬
ized, agricultural and residential

portfolio,

American

was

Gas and
tric

of

belt

Elec¬

passage

the

years,

Public

in

owned electric

Utility

Holding Com¬

As

pany Act, and
the
vicissi¬

that

capacity

tudes

and

the

of

.

security

an4 index

its

utility in the U. S.

of

magnitude,

installed

electric

note

power

supply about two

could

well

included

cities

known

quite

are

South

—

Bend, Fort

absolutely top
drawer rating

Muncie, Ind.; Benton
Mich.;
Canton,
Lima,
Steubenville and Zanesville, Ohio;
Roanoke and Lynchburg, Va.; and
Huntington and Charleston,

or

W.

disturb

to
U.

Ira

in

the

meanwhile,

of

out

trades

now

it

controlling

the

has

the

and

true,

NYSE

(pardon

it

Stock

Exchange);
true,
it
has
divested
certain, then held,
operating
companies;
true,
the
can

"Gas"

has

caped

about

best

whose

common

folios

the

of

financial

most

whose

in

the

among

personal

financial

elite.

headed

President.
vast

big

American Gas and Electric.

plants

Let's

look

sign.

Though
panies
is

AGC

electric

are

a

such,

holding

restricted

owning

six

grated operating companies

ing

population

a

million

in

Philip

Sporn,

items

Other

include

plant and

ultra-modern
of

the

generating

efficient

most

de¬

Moreover, because generat¬

plants

in

are,

certain

,

extraordinarily

low

basic generating

serv¬

is made

five

communities

cost

of

the

fuel—soft coal—

possible. No wonder AGC

show

can

clear

the
West

46,000

Virginia,

Michigan,

in

mills

Kentucky,

some

miles

square

states

seven

of

Tennessee,

Indiana

and

to

Ohio,

Virginia.

per

of

costs

kw

plants;

below

three

of

no

generation

at

wonder it's able

join with other utilities in de¬

livering

as

fuel

a

generation.

power to

the Atomic En¬

it

its

is

based
soft

also

aware

keenly

of

techniques,

If

in

the

undercut

can

take

may

So

is

for

outfit

relations?
portant

sales
are

utility

a

pervasive
of

present effi¬
And that

production.

on

These

in

influence

and

operations,
be doing

that

phase

Well,

too.

must

How

public

pretty im¬
and have a
on
earning

Let's examine

power,

course

because

bit of doing!

a

much

this

be

AGC.

as

genera¬

due

only

it

and

more

atomic

electricity

ciency of such

with

generation

getting

are

efficient.

tion

they

pretty swell job
average
residential
customer used 2,745 kwh in 1954

since

national

Not

only

the

that,

but

the nation.
hate

'em

for
be

rate

large,
in

for

the

has

Pumps—to

cool

in

here

if

to

sum¬

have

this

catches

line

line

not

let's

hand¬

in

steadily (almost $15

in

is

gross

Viewing the mat¬
different light, $100 in¬

in

AGC

1946,

common

would

have

divi¬

of

same)

market value of $225.

a

Surely this is

has prepared an

4%

a

in

no

for share¬

cause

54% stock dividend in 1929,
1930, 24% in 1931, 4% per

1932/34, 5% in 1951, 2V2% in
1953, topped
by a two-for-one
split in 1953. In addition, there

year

up-to-date
.

have been

^

a

This

all

makes

brings

us

up

we

sweet

to

of 48? Where

Well,
good.

Reynolds & Co.
120

Members New York Stock Exchange

me

a

Reynolds Metals Company.

copy

as

big

dividend

is

the

1,200

the

still
pres¬

depend¬

as

might cite

odd

issues

your current progress report

the

lower

New

than

a

level.

but re¬

Although

copper

plentiful, there were no notice¬
Despite a rise in unemployment
England flood areas, total unem¬

year

ago.

slight decrease in steel output this week. Mills
production at 90.6% of capacity. Output declined about 1%,
but production was 43%
ahead of last year's level.
Increased
shipments of iron ore arrived at many mills in an attempt to
was

a

set

keep

with

the

rising backlog of steel orders. The demand
flooded regions of the Northeast, and mount¬
ing orders from automobile manufacturers increased the backlog
considerably.
"
Although this week's level exceeded the comparable 1954
lor

pace

steel

from

the

■

.

level

by 28%, automobile production declined

decrease

noticed

This

attributed to shutdowns for model change-overs.

was

marked

A

9%.

almost

this

rise

in

week.

heavy

construction

Although

contract

awards

was

private

housing declined some¬
what, the step up in commercial and industrial building was re¬
sponsible for the increase. This week's level surpassed that of
last year by a considerable margin.
The paperboard
duction

industry continued at the same level of pro¬
week, and maintained a lead of 17% over the level

this

of the

corresponding 1954 week. There was a moderate decrease
in unfilled orders, and new orders rose 5%. Lumber
output rose
3%, and new orders increased moderately.
Current

and

Prospective Demand for Steel

"Iron

Age," is authority for the statement that: "The steel
is
moving from the frying pan into the fire."
The

market
summer

fall

"lull"

that

that

upsurge

wasn't

there

promises

is

be

to

giving

the

to the seasonal
in the postwar

way

strongest

period.
Neither producers nor consumers have much

look forward

to

to.

On their part,

the mills have been forced to slash fourth

ter

allotments

an

with

it all,

in

they

are

The automotive

period

over

with

effort

beat

down

quar¬

But

carryovers.

industry is going through its model change¬

scarcely

any easing in its steel requirements.
makers probably will be looking for heavier

car

production

lines

get

moving at high speed

•

There

has been

no

hint from

any

major consuming industry

that anything like a significant letdown
opposite. They're not only pressing for
and

order

resigned to heavy backlogs going into 1956.

tonnages when their
again.

to

shoving to place advance

commitments

first

for

orders.
'56

quarter

is in the cards.

Just the

delivery but also pushing
Some

delivery

would

but

like

the

to

mills

get
are

fighting them off.
Maintenance

shutdowns are still a big problem with -pro¬
The lagging ingot rate reflects this and other complica¬
tions, including tail end of the vacation season.

ducers,

Plates and structural are

and warehouse levels.

real problem

products at both mill

This is due to

a combination of continuing
strong demand and emergency requirements for rehabilitation of

flood-stricken

areas.

It's

a

dog-eat-dog outlook for

months to

come.

Some

fly-by-night operators

that

emergency to bam-bozzle
would eventually find its way

producers

are

not

falling for

is being checked for

trying to take advantage of
the mills into shipping steel
into other channels. But the

are

the flood

it.

Every

flood

emergency

appeal

authenticity.

Meanwhile, steel inventories of many consumers are at low
ebb, although generally speaking instances of slowdowns for lack
Continued

on

page

in

Ohio

Moreover, AGC is in for
Common shoiuld earn

Valley Electric

million

Net

trading markets jor Banks—Brokers—Institutions

Corp.,

American Telephone

■

and

on

of $3 per share on the
12,853,059 shares outstanding.
Then, too, three of AGC operating
units together hold a % interest
a

Telegraph Company
Subscription Rights
37/8% Convertible Debentures Due 1967
(Delivery when issued)

kw

a

Atomic

to

year

Energy Commission for

a

quarter

PROSPECTUS ON REQUEST

century beginning 1956. This will
little

If
to $2,

some

reverse

of

ADDRESS




$1.80

or

it's

rule,

upwards

tion

CITY AND STATE.

standard,

slide

year.

deliver
NAME

any

almost any you

N.Y.S.E.

2

of

materials.
in

slightly this week,

year-ago
as

present.

this elegant

company formed to deliver around

Broadway, New York 5

Gentlemen: Please send
on

below.

was

There

not

it go from there?

vouchsafed,

among

a

coupon

can

any

The

ently
able

simply mail

by

of

use

of this timely study,

ployment

were

reading

the

view

electric equity at the exalted level

For your free copy

declined

divested equity—At¬

How should

-C>

output

lantic City Electric.
and

REYNOLDS METALS COMPANY

Index

Failures

fractional share distri¬

butions of

progress report on

Production

Business

repining!

Fact is AGC has paid uninter¬
rupted dividends since 1909—cash,

plus

of

claims

Dec.

on

(without

reinvestment

or

holder

gain

year.

a

vested

now

ad¬

year on

king-size

in

31,

his¬

has

the average) to
total of $230 million. An¬
a

this

ter

little

a

gross

year by year.
total onorating rev¬

and expanded

other

at

$103.9 million

were

1954

shortages

insurance

majestically

million

industrial

substantially above the

Furthermore, the

AGC

For examnle.

due

able

AGC

on,

prosper

look

The

enues

Industry

Price

Auto

brass inventories

Heat

somely from it.

vanced

and

pioneered

Heat

but

really

stands

Now

Total

mained

the

of all electric

and

sales

Pump

tory.

Food

and

they

on

comes

down

it

on

winter

Actual

mer.

and

time

use

but

research

in

for

Not only has the

gone

appliances
heat

2.69

rough

the

increase.
brass

to promote wide

the

to

2.51

was

that;

too

if

company

2,549).

price

against

Commodity Price Index

Their customers won't

shouldn't

AGC

the

(1954)

kwh

per

is

average

householder

cents

a

a

their

(the

Output
Trade

nu¬

that

aware

Retail

as

the Chicago area.

steam

coal,

Production

Electric

State of Trade

elec¬
Well, the

as

production

on

more

Steel

The

in

serve

own

dends

Reyholds & Co.'

e

in

the potential worth of

energy;

reactor to
But

Thursday, September 8, 1955

of

threat

fact, it's out in
front with the development (with
other companies) of a generating

a

covering

the

management is

any of

in¬

stances, almost at the coal mines,

inte¬

almost

of

2,300

ing

com¬

genus,

energy

loomed

in

it.

Mr.

by

industry

improve¬
expenditures ($875 million)

pany,

at

This has been

of the best tech¬

one

postwar

ment

of

as

producers

nical managements in the

com¬

a

ranked

number of factors start¬

a

and

holdings

Quite

years,
lowest cost

ing off with

found

are

to

too

production.

for

the

and

trusts

certificates

has,

of

due

port¬

America;

mis¬

said

be

of

cost

of electric current.

conservative

institutions,

endowments

the

graces

the

AGC
one

in

pany

should

Something

completely es¬
operations
(though

the
corporate
title).
all, here stands a com¬
regarded by many as the
electric utility in America,

Still

the

14.6% commercial, and 8.3%

from

not

real

of

cellaneous.

almost

from

lot

a

enue
picture is pretty well bal¬
anced, running (for 1954) 38.6%
industrial, 34.3% residential,

instead

Ameri¬

me,

There's

Va.

heavy industry here that's been
rolling along in high gear during
the postwar years; yet the rev¬

moved

Bond

orbit;

the

on

Curb

Harbor,

AGC. True,

Electric

the

Share

of

Cobleigh

and

Wayne

century
have
done
nothing

about

power

AGC

.

Carloadings

prevails, it will

City.

The

quarter

Semi-

and

half times the needs of New

a

York

mar¬

kets of the

past

Mid-West

the

South; and with generating
capacity of about 4,000,000 kw
make
it
the
largest
privately

common.

The

tric

power

electric energy to

holding in the Electric Bond and
Share

major

atomic

.

AGC.

at

rampant

producers of electric current in the United States.

ber

electricity

•

engineering

top

Let's carry this point a bit far¬
ther. Much hue and cry is now

of the lowest cost, and best managed

one

volume

the

ask

brass

Enterprise Economist

A current look at

deliver

cheap,

By IRA U. COBLEIGH

.

profit,

and

English

on

electricity

AGC

puts

a

produc¬

increases

its

Established 1905

dividend

the?yield at 48 is above 4%.

Does that generate
any.
for you?

l^C]*)ONNELL & CO.

nucleonically!

Members New York Stock
120

Broadway, New York 5

Exchange

REctor 2-7800

enthusiasm
I

l|

SPECIALISTS IN RIGHTS FOR 45 YEARS

26

Volume

182

Number

5462

The Commercial and Financial Chronicle

...

(973)

Developments in the
Investment Company Indnstiy

Observations...
By A. WILFRED MAY

By ROBERT E. CLARK*

Divergent Views

Vice-President,

the Outlook

on

caption "Leveling-Off Indicated," the First National
City Bank's Monthly Letter reports a one-eighth drop in July's
starts of nonfarm homes from the April-May peak of 132,000
Further reductions in

home-building

*

*

#

and

The Research Institute of America, whose

spokesman

seeing
out

is

Cherne, while not fore¬
depression," likewise points
spots.
It expects that unem¬

soft

some

ployment will
lion
of

additions

to

the

work

force.

Consumer

spending will increase in the next
but not sufficiently to bring about
the growth
projected in the optimistic re¬
ports by the Staff of the Joint Congressional

ten

leading

the Economic

on

private

The

Report and

same

in

industry

in

extremely

an

period of time.

still

some

that

while

the

as-

to

everyone

in

*

*

shareholder
accounts

this

comes

How

great

when

the
or

it

economy

expand

exception.

has

stimulated

resulted

the basis

on

further

in

artificial

by

defense

needs.

rarely without

are

But,

in

is

.

some

highs.

.

and

the foreseeable factors

of

which

feared

when

first

plated

them

some

opertions
and

coop-

within

industry

as

we

new

business year."

the

that
investcompa-

lifetime

and

From

est.

affecting the public interchange is especially noto one who, like myself,

The

has

"Investment Facts"

stocks

the Exchange

stocks

on

year

for

would

25

to

107

that have paid
A

years.

a

of

298

It

a

seems

pilation

of

this

to

been

in

this

business

lative features of
than
of
for

from

the

observer

bonds

that

such

calls

for

frequently-made com¬
in the conclusions

care

It highlights the investment rather than specu¬

stock, as in the greater yield available
with hindsight), particularly since many

common

(if

prime

107

regulation

dividend-payment

years,

Westinghouse

at

both

the

level and

performers

Airbrake

for

75

(as

move

Continued

American

on

page

29

partly

since

This

are

pleased to

announce

At

least

hand

Scully

..j

as

of

two

hand.

in

level

these

__f

a

1?Vq

,T

small New Eng-

r\xJ-•

.

contem-

we

that

years

of

and

serve

those

no

between

,

d
d

'

^
'

best

it-

to imply

mean

7 tms 1 ao noi mean to imply
uniiateral

planning

fpptive

or

in

.

regulatory action
be entirely efnublio

E1

'

.
,

th

trouble''"

KeePs

On

both

the

«My

Elmer,

what's

T* 'Va'.T

are

I'm

very

happy to

record

changing

I

think that

au¬

Here, again, I think that
investment company business
been unusual.
For I believe

you will agree that this industry,
recognizing its public responsibil¬
ities, has responded promptly —

expressed

posals.
The

OFFICE

r

acted
from

Hancock 6-3355

investment

sion

companies

We

are

at

John F.

differently, in fact,
lady whose chief diver¬

parties

was

to

corner

pleased to

announce

that

re¬

quite
the

any

Spalding

formerly Commissioner of Securities for the State of Missouri

doctor

among
the guests and to
off a lengthy list of symp¬

reel

toms, seeking
Affiliated with

one
as

NESBITT, THOMSON and COMPANY, LIMITED
MONTREAL

a

THOMSON & CO., MONTREAL

occasion,
her

parties
a

most




Calgary

Vancouver

as

our

of

last

far

so

doctors

and South-West

at

description

nausea

with
and

of

and dizziness.

the

array

of

realizing his des¬

Barrett Herrick & Co., Inc.
35 Wall

Street, New York 5

perate position, the young medico

Private wires to

Winnipeg

the

formidable

aches, pains,
Overcome

Montreal

us

Wholesale Representative in the Mid-West

concerned, she nailed
young physician and reeled off

symptoms,

Toronto

and

On

was

Members

New York

has become associated with

sympathetic audi¬

questioning

Montreal, Toronto & Canadian
Stock Exchanges

a

and free medical advice.

ence

responded,
Ottawa

enthusiastically

and

loudly, "Very interesting, Madam.

Philadelphia, Pa.
Syracuse, N. Y.

Arlington, Va.

Victoria

♦An
tional

address

istrators
B.

by

Association
Annual

C.,- Aug. 29,

Mr.
of

Clark at
Securities

Meeting,

1955.

the

Na¬

Admin¬

Vancouver,

that

times' our cooperative effort^the regnew
conditions
and
experience ulat®d and regulators — seldom
reauire freauent reaooraisal and reacb
sucb an uncompromising
wUUngnS ^
conclusion. If we ask for $3 we
provi'sfolf whicT are ^"longer may well'get $2. Sometimes, in
necessary or workable.
But I do
Continued on page 17
And

regu¬

misgivings
however,—to sensi¬
conceived
regulatory
pro¬

she

glVe

W'

none.

interest

lated.

without

lor

h7

rap¬

thorities and those who

for

M

mG ~°r TrJree doll»rs agin.

garry,

the

seen

*

la *l' Tuesday for three
dollars, Wednesday she didn t ask
fo°T "othin; bu* on Thursday she

de¬

years

t

"Well

asking

Fed¬

the

and

f

askine

J S ^ 3S ?

can
the

®

®

'3Sf

y„G J,
that's ^

.

b

manage-

which

7.'

..

the public

self.
gv this I do not

f

w

business

best

ago.

is

there

.jf

/

P?a fn+niir
,,,! ml IS?

factors—

have

15

bly

Manager of their

140 Federal St. (10)

•

1

■

in some cases,

•

BOSTON

.

land town (I believe> Mr- Chairma"' 14 wf ™ NfY Hampshire)

not

as we

the interests of business

serve

ixl

7

in large part, too,

the state level

the

the appointment of

com-

follftll,

fellow' " 15 in llke the rugged
not
individualist

enlightened
regulation and en¬
lightened industry leadership, go

not

Mr. H. D.

a

the foresight of its industry
leaders.

has

'

«

re¬

velopment of a remarkable
port between t#ie regulatory

Street, New York 4, N. Y.

in

,

from

past

25 Broad

important

5°uvn Tf arf?L
^
ky'
an^IpintfnrTnJ fhf

to

that it resulted

eral

NESBITT, THOMSON and COMPANY, INC.

vitally

joint
the

.

maturity is also
in response to public de¬
I believe you will agree

mand.

Pennsylvania

years,

Win°!^ef^

give

affecting

Federal

the state level.

markable

longevity

dividend

those regulated

regulating

it stems

rate of return of 4.3%.

drawn therefrom.

of

admin¬

existed in recent years. Certainly
in part from enlightened

such

have

shown, as of August 1 last, 43 years of
sustained dividend payment, a dividend of $2.41, market price of
$56.05, and

as

In
part this rapid metamor¬
phosis is a product of the econom¬
ic-political atmosphere that has

dividend

cash

composite

interest

an(j

matters

Among the investment facts contained in the current 20th
edition of Investment Facts published by the members and mem¬
ber firms of the New York Stock Exchange, is a tabulation of
every

techniques

that

1929.

common

you

logic clearly dic¬
public interest is

the

those

^ts pTo- X^feguSnTor^o Tfee!

of

has
achieved substantial
the ability to maintain
the most vigorous competition and
yet to cooperate in all industry

ticeable

in

we'll

are

chilly

difference

ment which

only institution

the

leadership

the

I

disclosure

learned

substantial

neers,

Microscope of Francis I. duPont & Co.

II.

For

full

of

so deep nor so

We've

maturity,

as

including population growth, with

enter this

industry

the

during

under'

present

be

may

war

The

have

business have found that the

pany

nearly

ment

nies

of

clouds.

Clark

e.

when

Economic

measures
.

Robert

realized

period

a

Cold

study to matters
public interest.
7

clothes-

in the investment

fa-

believe

wants and demands, and technological progress,
there is confidence by both the businessman and the share owner
of American

we

are

eration

increasing

Market

-

And,

miliar—but to

bullish

all-time

new

this

the long-term imports,

as

to

accomplishment

that

increases

skies

output

this

not

was

market

no

well
its

been

considered

subsbtantial

stock

is

has

is

responsibilities

that

and

has been able to have

waters

the

and

other

with

deliberations

best served when

differ^

very
our

you

potencies in the American economy are
ability of business to overcome the adjust¬

1953-1954

public

p«»iicdis-

reacted

We took off

which

of

front

share

to

the

..

with

>::

market-business

tates

the

and

your

istrators.

look

2 000 000

itself.

of

s*mL

in

and

evidenced
ments

clothes

year

look!"

a

closure—has

sets

47%

a

in

invited

to

and

The investment company business, in response to precisely the

ently.

verdict.—"Underlying
the

have

your

the

stock

by

off

growth to $8 V2

gross

*

the

short

Take

of

■

lower taxes.

From

developments

matter

a

national meeting is, I think,
eloquent testimony to the wellreasoned approach you have taken

1929 events.11

I do not refer to

national output depends on
A. Wilfred Mar
skyrocketing consumer spending and a dip
in savings, actually rising incomes may well
bring increased spending and a dip in savings. Also the assumption
is questioned
that the Government can increase its spending
and

recent

billion

notes

source

some

An-amazing change has taken
place in the investment company

economists.

Congressional Report's anticipation of
increase

Describes

some

years,

Committee

■

levels.

both Federal

on

generally necessary

to

your

business, chief among which is the Public
Information Program. Notes "some disturbing similarities to

by at least one mil¬
the next three years as a result

during

made within

progress

investment company

increase

unabsorbed

industry and the

enlightened industrial leadership

state

Leo

"major

a

and

each

the amazing growth of the

industry itself toward cooperation in matters affecting the
public interest, Finds there has been enlightened regulation

$

sensible,

The fact that I, and many
investment company people,

the

anticipated.

are

*

investment company

developing on a
cooperative basis between the in¬
vestment companies and the Blue
Sky Commissioners is a desirable,

been

to

type of regulation

been

interest.

Calvin Bullock, New York City

Mr. Clark calls attention both

Under the

the

have

we

approach

Chairman, Public Information Committee,
National Association «f Investment
Companies

FROM END-OF-SUMMER READING
I.

that

mean

New

5

St.

Louis, Mo.

Washington, D. C.
Providence, R. I.
Kansas City, Mo.

Springfield, Mass.
Rochester, N. Y.

Bethlehem, Pa.

6

The Commercial and Financial Chronicle

]

(974)

mining

Expresses Opposition
Proposed Regulation "A" Amendments

Former SEC Attorney
To

that the

$300,000

or

less, would impose

The "Chronicle" has received

a

of a letter sent underdate of

Aug.

11

by Mr. Alec J. Keller to

the Securities and Exchange Com-

in
which
Mr.
Keller,
former SEC attorney/ points out
some
objections to the proposed
mission,

its

in

The

form.

proposed

re-

viewing staffs of the Regional Offices and the Regulation A unit in
the Washington office have continued to add interpretations or

Regulation, with the provision in
question contained therein, would
in my opinion seriously interfere
with basic American rights and
would

moreover

the

place

Com-

mission in the position of being
the public offering price in deter- subservient to men and to standmining
the amount thereof to ards which it is in no position to
which promoters are entitled. The
control.
Since the Commission
completely arbitrary nature of this cannot control the state securities
regulation has been demonstrated commissioners, it would appear to
jn a number of instances in the be folly to give these agencies

the

dealers and others interested in such issues.

copy

to sell in order to develop those
properties. The adoption of the

royalty, or $300 if they are
subject to royalty.
The promotional stock issued in exchange to

security

on

a
or

to

proposed revision of Regulation A, relating to security

issues amounting to

to

incorporators

by

promoters cannot be valued in excess of $500 if they are not subject

letter to SEC, cites inequities and hardships

Alec J. Keller, in

transferred

claims

corporation

promoters must be valued at

carte blanche authority to bind
the Commission by the proposed

Persons who have claims of
considerable merit for which they
past.

suggestions, as they are sometimes would reasonably be entitled to Regulation to accept such capricalled, to the extent that if a fil- a substantial number of shares of cious and arbitrary rules as the
changes in "Regulation A" —the ing were to be made in strict stock are faced with the necessity imaginations of state commissionregulation which relates to new compliance with the written Reg- 0f conducting sufficient explora- ers may devise in the future.
securities

issues

in

of

amounts

Thp

Mr

nf

iP-ri

iJlnL
*

KpUpy'*

1p11pv

S

'

letter

Securities and Exch. Commission
425 Second

Street, N. W.
"Washington 25, D. C.
Re:

sppiiriTip<s
Securities

3555

Act
Act

kpipacp
Release

r\jn
No.

Revision

Proposed

Consol.dat.on

of

and

Regulation

Regulation D.

In

totally

be

un-

the closing paragraph

of the

release

mentioned

development

and

tory

the claims to justify

work

on

-

evaluation

an

before the claims can

and whatever pride
he may take in his work in the
best interests of his client, finds

ferred

efforts

the

while

rejected

lar£er citY lawyer, whose practice

be trans-

the corporation for any

to

real amount of stock. On the other

hand,

who

persons

getting around

0f them

some

desirous of

are

regulation,

the

as

provide them-

are,

brings hirn into more frequently, value" bv staking needednumber of
contact wlth the selves with the out
arbitrary
frpouentlv.
scene

„u;)n(/,nc,
changing

mnrp

cponp

u..

ordinarily have his efforts ac-

clafms

a

which

It is not disouted that some sec-

offerings of underwriters' "
shares
"

on

administrative interpre-

on

priate number of shares to the incorporators.

The

Utah

Commis-

and

comments

Regulation

the

on

proposed

in

writing to the Com-

mission on or

before Aug. 15, 1955.
data
views
views
and
anu

This
aiik>

letter

of
ui

icuei

comments

submitted

is

to that uivuduuii.
ij
uicu invitation
for

date

filing

pursuant

Iljvuie.
Ed Note'

The
rue

comments

of

has

1)661} extended bv tbe Commission
to Sept.

15 J

My comments
a

prompted by

are

of course
if the re-

which

attorneys,

would not be necessary

time

it

first

adopted by
the Commission, at which time it
was

embodied Rules'200

210,'through

to

the "Letter of Notification"
and
in

finally with
its

large

or options may in certain instances
he termed
bail-outs.
In many

employed
staff

of

as

of

the

last

the

promotional
had

and

In

this

that

I

offer-

porators put real and serious effort into their corporations with-

thus

wnicn

the

on

it

is

has

for

J-

uld
would

which

ticuiarly

within

tnat it has

osei

ments

and

of

jn

be

way

in

Regu-

extent,
last

par-

year,

i

i

closed

full

been

require-

interpretations which

in the
Regulation
present form and have not

included

in

to

be

be

offered
for
for

aualihed
qualified

Province in

or

has

issuer

its

the

ura-

ura

reeistpr

obtain

or

an

required to registei or ootam an
from

exemption

Regulation

registration

tor

concurrently with the

Mexico

New

and

s?™n.daE,,s

Ari-

•

ti

th

^ates

I

believe

iorif

m

f

,

istration even more complex than
naradine

registration itseii

paiaaing

un-

un

ror(lH_

der the guise of exemption.

I

informed

Ben-

that

nett

a

pnrnnrptinn

to register. It is my personal view

^

wi„

a]1

f

that a

,,ranium

Utah.

in

cated

At

least

the

to

panies

located

be

may

Utah,

in

the Commission would, be adopt-

ing (he proposed regulation, subordinate

its

will

the arbitrary

to

Adoption

in

It would adopt for its

ii

crhifromi

of

this

provision
...

i

i..:

_

these

own

uiliipS

xirmilrl

the proposed new regulation would arbitrary standards which would
make the regulation difficult to not be universally applicable;.to

t0 ^ ^

!?
l

or

compl ^T^f^
example, the California

secu-

rities law requires that promoters
or

incorporators of

corporation must
eurities

until

corporation
or

wasting asset

a

has

their

escrow

such

time

paid

dividends equal to

present

Securities

regulations, which
believe
lack

their

to

be

some

invalid

sion.

Although I do not have a
of that Regulation before me

at this time, I

do recall that it in

general provided that if
should

issue

a

The order denying

Commissioner

adopted

observers

because

of

prior to the most recent revi-

copy

exceeding

of the State of Utah has

I it was particularly Rule 221(h)
recall contained in Regulation

A

se-

dividend

a
or

as

the

as

of

statutory authority for
adoption,
providing
that

that Rule 154 of the Rules and

Regulations under the Securities

bgQkers

vruf.

D£

.

~.

d<)Pnot

whQ

!

.

"

of

New

Congressmen

am

of

York

"eu

Michigan
head

Klein

and

lyiicrnga

New York wnicn ais Congressional
head
committee
to noia near

SaSL^bl^und
oacKgrouria

to sell

in that

sQ_

state

any

desist

and

cease

issuer the right

an

that the attorney

understanding

in charge of the

interpretive work in the Washington office does not share this
If

view.

should

it

desire

the

be

of the Commission to restrict sec-

that

offerings

ondary
CiaSSCU

dS

£ asse

Ddli

as

at

be

may

s>

a

would

be

automatically

and desist order

considerable

was

cease

volumes of the

in

effect.

which

in effect.
of

FINANCIAL

years

CHRONICLE

1926-1951 inclusive.

I

were

A

recall

the

arguments

then made to the ef-

the Commission

the

state

could

Regulation

was

securities

be

A.

exempted

al-

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

^

lation A issued or proposed to be
pi stock tojequ.ro the^escrowmg

to

b^i

escrow

the

assure

scribers

of

unless at

offering
within

is

to

return

the
sold

sub-

issued to directors, officers, prounderwriters, dealers, or

moters,

security salesmen, for assets or
services for a period of one year
paid-for is meritorious and I have no obafter
the jection thereto provided that secoffering " ondary offerings under Regulanpr™iscihlp aftnr
the

money

least 85%

six

otherwise,

or

paid in

of the total

and

months,

Xommencemept of the
^

_

present

Regulation.

To

this

coverable

a

stand-

pear

that

under

the

free

ap-

enter-

should be free to select
for securities which

a

they

salesmen are
paid commissions that are not recosts

periodicals,

and

and

numerous

expenses

are

other

incurred,

market

the possibility of the
accumulation of all such expenses
and the possible occurrence of a
condition subsequent which would

propose

require the underwriter to return

prise system of America people
owning
property
in
one
state

.

Pnay to ^se under the Regulation

the- securities in the
of an offering to continue t.'e sales effort witn a view
toward filling out the offering as
quickly as possible. With this in
mind,
expensive advertisements
are
inserted in newspapers and
other

From

from

obligated not I only to the
for which they are act-

company

extent the Commission has already
been over the ground that it now

traverse.

e

c+nrk-

ing but also to the customers who

feel

purchase

under

C1inh

Paragraph e. of the Release provides that no sales literature such
as covering letters or other follow-up letters, which are now
permitted under Rule 221 ot Regulation A, may be ,used by P1'0"
motional companies. Such letters
are required to be filed with the
Commission at least tlve days

initial stages

point of clear logic it would

Edwin L. Beck

aid[.o£ Con-

^
be

marked

to

made,

com-

Rule

opinion this will

the

the Release reads as follows:
Provision would have

seeks to

immediately.

my

The proposed change in Regu-

secu-

221(h) was
eliminated from Regulation A several years before the adoption of
the

This beautiful set available

In

of

paragraph

pressure

missions to determine when
rities

COMMERCIAL &

adoption of the rules in

by

(c.)

The

impossible to cause best efforts
brought on the Commission underwriters to assume the attendby the Northwest Mining Associa- ant risk of failure to sell at least
tion to eliminate
that provision 85% of an offering within a sixfrom Regulation A as it was then month period. Most underwriters
amount

It is

gressional hearings.

®v&X ctosM««?

if adopted would effectively eliminate any financing by promotional companies under Regulation A.
It would appear to be

A

Com-

Ieast insofar as Regulations A and
D apply to promotional companies

r'es"ult without'

tion then the exemption of Regulation

the

opinion < as herein expressed
that Section 3(b) will be effectively eliminated from the Act at

It is believed that this provision

lost to that issuer while such

that

such action.

my

question.

OUIS,

It is also

of 1933 from that Act
mission opposes

particular jurisdic-

lowing

Canvas bound

iny. necsessary

in§

.

extent that such promotional comextent that such nromotinnnl com

feet that




..

.

exploratory

and possibly illegal regulations of
the Utah Securities Commission.

"FOR SALE"

Phone REctor 2-9570

i

to

afford

oannot

„

was

covering the"

A

Z

_al

dar

promotions have been based

offering in other jurisdictions."

Vle the
ReSuIation the public offering price.
to

registration by ad-

not included
its

the

Province

op-

com-

have

follows.

as

lo

cipal

also

attempted to bring the

ministiative
are

the

paragraphs

prinbusiness operations, and
offered for sale in such State or

com¬

an

a.

securities

sale in the State

both

have

administered

lation A except to the

a

the
tne

nf
ot

^

SS zom'as" wellTs oTscaUered'prop- Posi«°" to r®1uire l'he corporation

outlined -in the

are

prepared

general

number
numoei

a

logic,

...

The

to

Regulation

un(jer

....

many years

companies' that have Act of 1933 makes possible the
bUl
intendeTTo elimfnate
sold securities in public offerings
sLIfofa corporation Section 3(b) of the Securities Act
havet their principal Properties lo-

geneial impression that
impression that

Commission

paid

(ha( statisti

"fltt'general
it is m\

thei other hand, ?^similar corpora

After

These will be considered sepa-

A

tne

that

available for

^ignated a. ofb.fee» and d °n3o5a.
the
facing Pa^e
Release No.

^r;!f Re,nU^CAth<i rec'u're~
Su form ol Reffulatkin
inrfhZ
proposed'reviafd form and

mended

extent the rule lacks

Colorado

Paragraph

have had

reward.

substantial

-k rs&sgras'st» SM-«« — instances they are not in
- —— uoioraao, wew Mexico ana An- many

opportunity to work on a
registration state¬
and

be

the percentage sold in Utah and

mum

number of full
ments

commissions to

loueh
tougn

for

I

j

,

instances well-intentioned incor- worud be made avaname tor i ac

a

and

seasoned

Sta e

exercise

securities offerings sold in

any

;

the

time

could

it

,

Of¬

form

present

,

and

*

reviewing notifications and

on

have

fo^sLle^toe

L
its
« "Jtan anan touio' exeruse »
Utah

nf

mav

filings under Regulation

its

panies.

I

S-". tt could sell its

them

i

Regional

Commission,

year

numerous

in

an

the Denver

fice

A

period,
attorney

on F?™

was

Through

this

of

stage,

Regulation

form.

present
part

the

ties located in Utah. Let us assume

.

lation A in its several forms from

c

tion

0n

general familiarity with Regu¬

the

con-

of one
issuer needing $325 000 for the accomplement of its objective of
acquiring and exploring proper-

of such effort at a quat«3™8 under; Ke^iauon A
time when securities enjoy a favquirements would be embodied in Utah are not to exceed 12%% un- orable market due to toe season- 0We Utan becunues jommissicm
the Regulation proper.
less three-fourths of the offering' ing of the company into a pro- belor
^ being permitted to me un
sold outside of Utah
in which
ducer or. due to other factors too 25L
?
' a
s.}}
The foregoing is cited merely in
numerous
to
mention
if
thev
a
total issue before it will
illustration of the event the total amount that may
numerous to mention, 11 xnty
nrivileepH to pxprrise the nurPassing as an niusiraiiuu ui uil
,.nmmiwon<!
ho
should seek toreward themselves b,e privileged to exercise tne pur
apparent necessity foi including
P
y
,
sellinc?
some
or
all of
their chase option.
I believe the proRegulation all of the re- increased to 20%.
The protection D/ semng some or an 01 men
,
,
.
pmrmipteiv without
m .xne ^eguiauon au 01 me
t
investors
in
Utah
stock, there should be a method, posed rule is completely wixnoux
Quirements which the stdif 01 the
<
^hort nf registration
nvnilnble to
merit &nd the example serves to
v^uiiuiusMun may
wisu iu
111
Commission may wish to assert in should be uniformd regardlessand them. Most stockholders who are show that me Regulation is "regof
I snow max the regulation is ieghrnereent^e 7o
in Utah
their

views

of-

for

that it hopes to acquire the properties under a purchase option
'bail-outs; and offerings of un- necessitating the payment of $125,derwriters'
shares
or
options, 000.
Because of the amount of
would not be permitted under the offering this prospective issuer
the exemption."
would file a registration statement

v'sl(°" thatRegulation A, persons tations to uninitiated issuers or siort also has provided by regula- out
°
it was
stated
all interested
submit data,

be

quickly. x ucuuvu too these claims can be transferred
I believe iou tnese claims
be
transterrea
procedure is unfair to the t0 the corporation along with the
reviewing crews in the regional few worthwhile claims in order to
offices who are required to spend
justify the issuance of an approbased

to

could

Securities

"No

situation

The ironical

sjderation is the hypothesis

fered except for the account of
the issuer; secondary offering,

ondary offerings "bail-outs," and

»

invited

Securities

worthless ground so that

ca„

f0aS,o¥sUe.
PJeiaCe °
,"the •Jcfic'encies
y long hours citing
18, i955 draft of the proposed reare

of

b.

Subparagraph

all of the, money->expendedcommissions and other expensesto the purchasers: of securities, it
would of course not be practical
for it to participate in the offering at all. Another factor which
must be considered is the frequent
necessity for use of funds to exercise purchase options on property
before any substantial portion of
the offering is sold. If this provision in its present form were to
be incorporated in a revised regulation, issuers hoping to exercise
property purchase options could
not take the chance of fiinancing
under Regulation A.

Act Release 3555 reads as follows:

P™cedure is unfair to the lawyer rep0rt establishing greater values
in <Todunk>» who, however care-

cepted more quitMjr.
cepieu muic

Gentlemen:

above

would

it

ful he may be

his

oddd,
rToposea
jpoo, proposed rievision ana
nevision ana

A and

ulation

acceptable. It is believed tnat this

$300,000 and less.

Thursday, September 8, 1955

...

Foreseeing

in
present form. Under lull
registration covering letters or
follow-up letters are not required
to be "led at all; 1 see no logical
reason why such sales material
m.ay

with

n0JL

.

use£ in connection

offerings

by

promotional

companies. It is certainly lmposin§ p greater restriction on a regulation which is adopted as ^an

than exists for full
registration. It is also believed
I'rat subsequent events occurring
after the frbpg °I an offering circular should in fairness to P1*®'
Continued, on page 29

exemption

_

Volume

182

Number 5462

.

The Commercial and Financial Chronicle

..

Over-Full Employment in Britain
the

election

eral

result

perity.

trade

prevails in all fields of that nation's

'

in

May largely as a
overbuoyant pros¬
this self-same pros¬

But

economic siluation in Britain,
by the Socialists of the existence
of over-full
employment, Dr. Einzig points out conditions
which make it
glaringly obvious that over-full employment now

Jtt itliuitnrtaiu

dustrial

on

which has led

.

*

this

of

perity has shifted the balance of
power
further in favor of the

By PAUL EINZIG

Commenting

(975)' 7

overtime

present

work prevails,

and only

obtain workers is by

LONDON, Eng.—Britain's
ent

economic

produced

have

beneficial

one

effect:

they have led to the admission
the

bv

Socialists

of

the

exist-

of

ence

over-

full employment.
In the

past that term

simply did not
exist

in

the

vocabulary

of
Labour

the

industry

new

a

movement lost
of

can

granted

the

em-

to foresee

the
higher wages, and another
round of wages claims is initiated.

Indeed,

since

ment is reached a|
claim
put forward on the ground that

the meantime the cost of
has increased. It has

is

in

^mg

all-round

of

increase

be^an

wag

have

ld

have

althe

been

have

policies which
unpopular in

been

William Michael Cahill, former Editor of the "Chron- '
Railroad and Corporation

icle's"

week at

Mr. Cahill

-

b^ck
the

j.

Qf

election.

over-expansion

^

bt

balanc'e

of

was con-

tbe

bmit

effect

on

to

wbicb' through

the

So

its

at

the

payments, it began to

endanger tbe gold reserve and the
external

stability

.

becQme imperative to reverse

the

trend

at-

This

is

is

what

now

;■

Mr. Cahill had been identified with
the "Chronicle's" editorial staff for
30

until his retirement in

years,

over

1949,

succeeding Arnold Guyot Dana, noted
Corporation
Department for many years.
Editor ■,of the Railroad and

Mr. Cahill lost two

sterling,

of

Having reached that stage, it has

born at

was

a

bers of the "Chronicle's" editorial staff.

the Labour Governlagt

Department, died last
lingering illness.
Castleisland, County Kerry,

Stoneham, Mass., after

Ireland, Sept. 13, 1890, and was one of
the most respected and esteemed mem¬

countrv and which would have

brought

I

Former Editor of the "Chronicle's"
Corporation Department

this consequence

would

guit of ec0nomic

disputes are

wages

apt to drag out sometimes month
after month, as soon as an agree-

should

-

"^heir prosperity drive? The

rise in the cost of living has nuilified the benefits derived from

^en bee
suggested with mild exaSgeraLon
prevailing that it would save much trouble
conception to everybody if there wouldI
tnai

advisors

time

Party., The

was

his

and

ternative

are

WILLIAM MICHAEL CAHILL

result

a

Is it conceivable that Mr. Butler

failed

claims

as

over-full

trade union in turn is putting in
claims for higher wages. By tn?
the

ground

employment, its in¬
wing has achieved an un¬
precedented position of strength.

outbidding other employers.

pres-

difficulties

way

stability. While the po¬
the British Labour

litical wing of

Says much

economy.

unions, to the detriment of

economic

admission

to

Service,
who

sons

in the Air

Petty Officer John J. Cahill,

one,

shot down in the Pacific area,

was

tempted with the aid 0f disinfla-

and the second son,

tionary

who

Lt. Francis M. Cahill,

_

ployment
such
Paul

Einzig

good

a

thing
there

not

possibly be

that

could
of

enougn

alone too much.

was

it,

lei

social service beneblts
J of a
marking up of the P^ces 0f°ku

goods and

or

more

jobs

Conservative

referred

papers

ployment,
the term

When

vacant.

politicians
to

or

news-

over-full

Socialists

are

V1C10US

the invention of
Tory
propaganda, and claimed-that implied a desire to return to the bad
oid days of
large-scale

ment.

pffPP+

enmp

s

g%\

w%

ill'

in

the long run*

as

debate

a

T-v

in

1951.
.

,,

the

on

eco-

ever'C Mr^GaUskeH

struck'

tally different

He said

the

of

situation

note.

of

causes

the

of

brimfull

AnH

-

later

doc-

a

employ-

he

that the appearance of

remarked

abounding

prosperity enabled the Conservatives

"to

hna«;t

ahnnt

ing

the

of

full

over

discipline

\^de

unions

£erve

/lthough

it

tnat."

These

remarks

eiLomif expert of
economic

such

after all

thine

a

realized
admit

as

g,

t

Gaitskell

A
the

of

Partv that

in

popular

The

de

an excessive de
that,

was

public,

having

prepared

to

though

even

ployment
been

It

obvious
ber

of

rlow

in

of over-full

Britain

matter

a

1951.

industrial

lI

of

has

become

to

01

a

num-

declined
all-time

an

be-

low

pTssureTfa rirtnVcoestf of
Pressure

in

glaringly

by 1955. In July the
unemployed

200.000,

have

may

argument

rising cost

of

Uvtag
living

? £ e, one hand, and temptation
of
high

wages

the other hand

cernea

with

any

fixed

incomes, and many housewives, to join the ranks of indus-

trial labor.

Above all, workers in
industries
have
come
to

capacUy

They object to the employment of
were

workers,

even

available,

any

if there

because

Xf orThT exiting rtaS6 But
has

Pan

De

become

llmost

increase further the

industry.^

•

All

impossible

to

manpower

of

reservS haT^been

exhausted. The only way in which

industrv or an expanding
industry can secure the necessary
labor is by outbidding ouier eraa

•

new

TnTois

spiral

was

state

of

ThS

aff^^r^

a

bound to develop. Each




are

nf

wages

?°+^

become associated with them in
in
their

bond

government

ment.

Mr,

been.: with

&

of'the
the

prjceS)
ments,
Tb

other

on

or

encouraeed

y

'

the balance of

on

communist

.\l1c

industries./
in

this atti-

a

mnd

f.^rminfn^
undermining

Por'un,ty
which
whjch

W. T.

U.

hold

not

on-

the
-the

feel

impelled

the

authoritv

Hence

their

•••

the

Rjl

their

to

^

^
*

.

lled'

after

to

ley

to

the

o£

workers

To

very large
extent
this
affairs has been the in-

prospirity

Government's
drtve

restrictions

( Conserva-

tive freedom") coming as it did on

of

fuu

employment,

was

bound to create over-full employ-

ment.

(Special to The Financial Chronicle)

Co., Inc., 29

Street.

Mr.

South La

Bulloch

BEVERLY HILLS,

with

was

E. Bennett has

staff

of

Real

Property

233

Inc.,

ments,

Calif.—Geo.

been added to tho

South

Invest¬

Beverly

Drive.

>

The Conservative Govern-

ment was re-elected

at

the

gen-

McLeod,Young,Weir & Company
limited

has

Underwriters and Distributors

1,
Ri¬

Since 1921

in-

his

Mar¬

quette Uni¬
versity in 1948

wun.m T. Ril.y, Jr

at which

•

of

Canadian Investment Securities

been

the

from

*

as

t.

graduation

time

..

.

offers

icing
of

the

complete facilities for serv¬

investment

American

investors

requirements
seeking

op¬

portunities to invest their funds in
established Canadian companies with

growth potential.

he became af-

affiiiated with Riley &

and

with

The

Marshall Company.

Our facilities include
wire

service

cities
Boston

of

private teletype
in principal

offices

to

Canada

and

The First

to

Corporation, New York.

Daniel Reeves Co. Adds
isprcia, i» x„r

Inquiries invited

c_>

BEVERLY HILLS, Calif—Norman

m.

Lyle g. Eade,
Betty Keeler, Mau-

Banks,

Walter Kaye,

^ice A. L®vy, John
dan L. Utta1'
_

top

p

Mr.

since

Mt. Gaitskell's

criticism was well-founded to the
extent that the additional production resulting from the removal .f

Socialist

&

associated

or¬

business

Co"

a

e

T.

vestment

as

before"

its

with

arp

installation

expensive machinery, to retain
1

state of

Leason

become

associated

resist

omn]nvpre

-S

1955.

lend

unions

determined
.

has

has

ganization
of

higher wages
cost of production by the
f
automation.
' The

Pk

loch

&

that

Jr

joined

11 is not possible in Fritai" t0
of

T

With Real Property Inv.

CHICAGO, 111.—George C. Bul¬

an-

William

f.

offget the effects
.

Street.

Sj r

nounces

•

strjkes in support of claims which
thev know to be unjustified.

^

Bush

776

(Special to The Financial Chronicle)

Salle

MILWAUKEE, Wis. —Loewi
iVA

■

members,

eventually
of

134 South

formerly with Fox, Reusch & Co.
and .Central
Republic Company.

Co., ,225 .East Mason Street
■
■
-

u

control.

over

Weeks,

Salle Street.

FRANCISCO, Calif. —
is conducting a

Hanchett

securities business from offices at

Riley Jr.

freqeney of unofficial strikes. The
linj0n officials, anxious to retain
tbejr

La

&

Joins Loewi & Co.

unions
T vet Tome TSyet come under.

have

SAN
Corbet

Manley

—

agitators who

citnatinn

see/n-A

pay-

Hornblower

Com-

con-*

Iortea

E.

connected with

111.
now

Joins Leason Staff

^Beutel. Tias
G
White

J.

and prior thereto was an of-

in

MacDonald is

^^°afefiliated
Reeves

&

}

(Special to The Financial Chronicle)

depart-

Manufacturers Trust
Co. in the U. S. Government and
S. Government and

Gn

-

cede' re2ardless of consequences

it

i't

con-

oroaae

^

,

sesaerc^and other benefit that municipal trading division,
'ruobaLe
uP forced
to

number

iimit of'lheir°physical
additional

is not

tne

le?dCTS'

that

beyond >nounce

Danv

employers can

other, indueedmany people living on small ™

many

of

CHICAGO,

—

.r

Corbet Hanchett Opens

(Special to The Financial Chronicle)

Wm) E. Pollock & Co., Inc., 20

limit

a

tieutel

t».

Pine Street' NT York City, an-

file^on

the

on

With Hornblower & Weeks
joiin

Irealfzethat

t'o

wise to
is unwise to misuse their
misuse

which .it

Communist
em-

the

by securing

for
°e.uP"
industrial authority o£ those trade
authority »f

the

among
among

existence

'

prominent in Catholic religious and

officials

irrpcnnnsihle

1lttpr1,.

l^ n^ hnnnd
j. Jf must be

~mninvprc

he

he must have been aware that his
admission was bound to be un°
workers
Workeis.

was

To his editorial associates, Mr. Cahill was known for i
affability, his Irish wit and humor and considerate j
personal qualities.—A. W., Sept. 7, 1955.
J

.

Labour

excessive

an

this, he

it

Cahill

his

TTLTuTnyTnxfous'to

im-

there "ran

credit

s

I

lay activities in his former home at Lynbrook, L. I.

the satisfaction of their claims, un-

employment0 hUhThey° dTdTo
Sjfof hrir
call it that."
These remarks im- mlnds of -their
'"T'T'
can

within

their members

that

t

ment"

Cahill

by his wife Catherine, two sons, 1
William B., of Valley Stream, L. I., and Kevin P., of San »
Francisco; two daughters, Mrs. Joan Allen, of Sedro i
Wolley, Wash., and Mrs. Margaret Danaher, of Stoneham, i
Mass.; by two sisters, who are nuns in Catholic religious
orders, and two brothers in the priesthood, Reverend
Mr.

ance

To"-

application of what is
Conservative freedom in a

situation'

M.

David Cahill and Reverend Kevin Cahill.

benefited by this state ot affairs,
It has changed the industrial hal¬

present

"the result of

was

a

trinaire
called

William

employment has been the loosen-

•

During the debate

one

accidentally killed while in¬
structing a serviceman in aircraft flying
at Pensacola, Florida.

The trade unions have greatly

ot nower completely m their
ment. Mr.
Gaitskell, when Chan- -favor. But they have no cause
cellor of the
Exchequer, expressed f°r rejoicing. For one of the natthese sentiments
forcefully during ural, consequences of over-full
unemploy-

was

Mr. Cahill is survived

sPira

or

em-

denounced

^

so
of

extent

Nobod^would be better offJoHll G. BfiUlel JOIRS ;
/any more than*ey
under the exist ng system o£
nHI, £ p „
C.TUIIUbA tt UU.
& Q

S 'be

two

in

succeed

restore relations between British

They ■considered

each

serYJ^LhI0^lfto
to

devaluation ot steiling by halt

They can only
far as they reduce
over-full employ-

measures.

with

:

lawalper

Head Office
50 KING STREET WEST, TORONTO,

be_

Daniel

Co., 398 South Beverly

Drive, members of the New York
and Los Angeles Stock Exchanges.

CANADA

EMpire 4-0161
MONTREAL

OTTAWA

WINNIPEG

LONDON

HAMILTON

VANCOUVER

CALGARY

KITCHENER

QUEBEC

NEW YORK

«

Bissell & Meeds,

Dealer-Broker Investment
Recommendations & Literature
understood that the firms
send interested parties

to

mentioned will be pleased

120 Broadway, New York 5, N. Y.

EVENTS

Inc.—Circular—Singer, Bean & Mackie,

Gulf Coast Leaseholds,

Co., 25 Broad Street,

Hotels—Memorandum—Hirsch &

Hilton

New York 4, N.

the following literature:

Gartlev

Y.

&

Telegraph Corporation—Bulletin—

&

Associates,

Street, New York

63, William

Inc.,

;
Public Service Company—Analysis—A. C. Allyn & Co.,

Iowa

Atomic Energy

ment Securities

Co., Inc., 1033 Thirtieth Street, N. W., Wash¬

ington 7, D. C.
Building Ohio's Heartland—History of Central Ohio—The Ohio

Analytical brochure
Co., Inc., 14 Wall Street, New York 5, N. Y.

Kimberly Clark Corporation

Investment
issue

current

Wall

Through

the

Japanese

Stock

data

"Weekly Stock Bulletin"—The Nikko Se¬
1-chome, Kabuto-cho, Nihonbashi, Chuoku, Tokyo, Japan.)
Four

Foreign Favorites—Discussed in "Highlights No. 31"—
Troster, Singer & Co., 74 Trinity Place, New York 6, N. Y.

Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.

Japanese-U.

S.

Taxation

Conventions

—

Analysis

—

Nomura

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
.in the same issue "Nomura's Investors Beacon" are discus¬
sions

of

Bank

Outlook,

Ltd.,
and

Rates,

and

and

analyses

analysis of Business Results and

of

Mitsui

Chemical

Sumitomo Chemical Co., Ltd.,
Tokyo Electric Power Co., Ltd.

Tokyo

Industry
Gas

Co.,

Co.,

Ltd.,

the

on

market—Park, Ryan, Inc., 70 Pine Street, New York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed indusk-ial stocks used in the DowJones Averages and
thej 35 over-the-counter industrial stocks

yield

and

National
York

4,

market

performance

Quotation
N.

Bureau,

over

Inc.,

Averages, both
13-year

a

46

Front

to

as

period

Street,

—

New

Y.

Public Utility Common Stocks—Bulletin—G.
A.

Saxton

& Co.,

For Investment—Discussion
Letter'—J. R. Williston & Co.,

ment

York 6, N. Y.

Also featured is

a

in

115

Exempt

Income

For

the

Individual

*

Allied Products
15

National Biscuit Co.

120

way,

Riverside
Office

Company

Metals

Cement

Co.—New

Sheraton

Corporation

& Co

of America, N. T. & S.
A.—Bulletin—William R. Staats
Co., 640 South Spring Street, Los Angeles
14, Calif
Barry Controls
Inc.—Memorandum—Paine, Webber, Jackson &
Curtis, 25 Broad Street, New York 4, N. Y.

14

Wall

632

South

Uranium

New York 5, N. Y.

'

Corporation—Analysis—Harris, Upham
Memorandum

R.

S.

& Co.

120

Dickson

&

MICH.,

SEPTEMBER 11 TO

&

available

Tulsa—Memorandum—Bond
Minnesota Avenue, Kansas City
17, Kansas.

Co.

is

Inc

a

917

22NI)

HOTEL, MACKINAC ISLAND,

Trinity Place, New York 6, N. Y.




Country

Club—to be preceded
cocktail party Sept. 21.

a

Nov. 16-18 (New York, N. Y.)
Stock

of

Exchange
Gov¬

Firms meeting of Board of
ernors.

1955

19,

Smith,

Allen & Co.

New York, N.

Bronemeier, Joseph

Scherck, Uichter & Co.

St. Louis, Mo.

Bishop & Co.

York

(New

City)

Rauscher, Pierce & Co.

at

Holly¬

Scully Boston Mgr.
For Nesbill Thomson

Dallas, Texas

.New York, N. Y.

Sehirmer, A.therton & Co.

Boston, Mass.

Smith, Hague, Noble & Co.

Detroit, Mich.

Burke & MacDcnald

Convention

Y.

St. Louis, Mo.

Candee. Moser & Co.

Candee, William J.

(Hollywood,

1955

wood Beach Hotel.

Chicago, 111.

Scherdc. Richter & Co.

Byrne, R. Emmet

27-Dec. 2,

Syracuse, N. Y.

Blunt, Ellis & Simmons

♦Burke, David J.

Nov.

annual

Browster, Halsey C.

Kansas City,

BOSTON, Mass.—Nesbitt, Thom¬
son and Company, Inc., announce
that

Mo.

H.

D.

pointed

Scully

has

of

manager

been ap¬
the Boston

Federal Street.
Mr.
with Eastern Securi¬
ties, New Brunswick, from 1935 to

♦Feldman, Grant A.

Piver, Jaffray & Hopwood

Minneapolis, Minn

office,

140

♦Fuerbacher, John N.

Walter Moody &

Cincinnati. O.

Scully

was

Heimerdinger

Baxter. Williams & Co.

1952

Dallas, Texas

Army

from

McDonald & Co.

♦McPolin, Ben J.

Dallas, Texas

First Southwest Co.

McElyea, Mrs. Annie

Detroit, Mich.

First Southwest Co.

Hastings, H. Russell

♦Jackson, Winton A.

Cleveland, O.

North

African

Detroit, Mich.

paign.

Boston, Mass.

Thomson

In 1952 he joined Nesbitt,
as manager of the New

Chicago, 111.

Brunswick office.

oi

First

Meyer, Frank P.

J. 3.

Mich. Corp.

Maguire & Co., Inc.

McMaster, Hutchinson & Co.
Hancock, Blackstock & Co.

New York, N. Y,

served

in

1940

the

to

and

Canadian

1946

in

Italian

the

cam¬

Cincinnati, O.

F.astman, Dillon & Co.

and

Atlanta, Ga.~

Seasongood & Haas

Michigan Corporation & Security

Ruen, Miss Ruth
1

Commission
First National Bank

Whipple & Co.

Alfred C. Ivers

Detroit, Mich.

Chicago, 111.

With Zuckerman, Smith
ha§ joined Zuck¬
Smith & Co., 61 Broadway,
New York City, members of the
New York Stock Exchange, in the
investment research department.
erman,

,

Chicago, 111.

Schubert, Donald D.

Bacon,

Snyder, Everett W.

E. W\

Taylor, Mel

Semple, Jacobs & Co.
Wm. C. Roney Co.

Detroit, Mich.

Mr. Ivers has recently been asso¬

Williams, George R.

Livingston, Williams & Co.

Cleveland, O.

ciated

Snyder

Co.

Syracuse, N. Y.
St. Louis, Mo.

wth B. C. Forbes Publish¬

ing Co.

Member

DEPENDABLE MARKETS
Senior Trader

N.A.S.D.

Broker and Dealer
i

Experienced,

seeks

connection

trading over-the-counter secu¬
rities.

Japanese Stocks and Bonds

Troster, Singer & Co.
74

day at the Omaha

Investment Bankers Association

City

on

2400

Bankers

Investment

Nebraska

Florida)

14, 1955

Material and Consultation

Security Dealers Association

Sept. 22, 1955 (Omaha, Neb.)

CON¬

Bishop, Wesley M.

Uorattta j^ectwdlijes
®o., %t&.

Y.

Stock

of

modore.

ANNUAL

Cincinnati, O,

Foreign Favorites"

Members: n.

(Denver, Colo.)
Exchange
Firms meeting of Board of Gov¬

Sept. 21-23, 1955

dinner dance at the Hotel Com¬

George Eustis & Co.

Highlights No. 31

2-

don

Security Traders Association of
New York cocktail
party and

♦Mr. & Mrs.

Now Available—

HA

Philadelphia 30th
Day, at Hunting¬
Valley Country Club, AbField

Wallace, Robert C.

Inc.—Memorandum—McDonnell

of

(Philadelphia, Pa.)

Bond Club of

Association

Reis, Robert W.

on

"Four

copy—John H.

per

Arnold, Henry J.

♦Sachnoff, Samuel

Also

meeting of Board of Gov¬

Sept. 16, 1955

by

Cincinnati, O.

Mines Limited—Analysis—L. S. Jackson
& Company,
Ltd., 132 St. James Street, West, Montreal, Que., Canada.

Bank

$2.00

Firm

Dome

First National

&

City 1, Utah.

Polil & Co. Inc.

♦Robson, Henry E.

New York 5, N. Y.
Phillips Petroleum.

day

ernors.

Armbrust. John J.

Company, 105
Springs, Colo.

Broadway,

Witter & Co.,

Rees, III, Arthur F.

Dobeckmun Company—Bulletin—Boettcher and
East Pikes Peak Avenue, Colorado

120

—

FOR

REGISTRATIONS

Pulver, Henri P.

Co

Building, Charlotte 1, N. C.

memorandum

Fall

Nov.

♦Moynihan, James E.
—

of

field

(Chicago, DX)

annual field

Review

—

16-17

Sept.

Association

Corp.—Memorandum—Talmage & Co.,
Broadway, New York 6, N. Y.

Ill

Chi¬
at
Country Club
(preceded
by
cocktails
and
dinner Sept.
15 at the Union
Club

annual

ington, Pa.

& Co.,

—

Broadway, New York 5, N. Y.

Electronics Associates,

W. E. Burnett &

Electric

♦Dyer, William J.

Analysis — Scherck, Richter
Company, 320 North Fourth Street, St. Louis 2, Mo.
Delta Airlines, Inc.—Analysis—Blair & Co.
Incorporated, 105
South La Salle
Street, Chicago 3, 111.

—

—

Wall Street, New York 5, N. Y.

Delaney, Mrs. Mabel A.

Iron—Report—Bache & Co., 36 Wall Street

Stores

Memorandum

—

of America—Memorandum—Coombs

Corporation

(Chicago, 111.)

Bond

Medina

the

Annual

Company—Analysis—Sutro Bros. & Co., 120

♦Creamer, William E.

New York Hanseatic

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

Home

Herrman

Broadway, New York 5, N. Y.

Chesapeake Industries, Inc.

Wilder

E.

Spring Street, Los Angeles 14, Calif.

United States Foil

1955

ernors.

Union Oil Co. of California—Memorandum—Dean

*Canavan, John L.

Dixie

Poit

Street, New York 5, N. Y.

Bonanza Oil <Vr Mine—Report—L. D. Friedman &
Co., Inc., 52
Broadway, New York 4. N. Y.

Detroit Steel

10

Thiokol Chemical Corp.—Memorandum—Smith, Barney

Name

&

Taylor Oil Corporation

Co.,

Co., 11 Wall Street, New York 5, N. Y.

ADDITIONAL

,

Bank

Delhi

&

Amerfca—Analysis—H.

of

16,

Municipal
cago
19th

Investment Bankers Association

Cohen, 52 Wall Street, New York 5, N. Y.

&

Restaurant.

Sept.

.

—

&

views—Lerner

—

NSTA Notes

Broadway, New York 5, N. Y.

Fuel

—

Square, Boston 9, Mass.

Westinghouse

Equipment Corp. — Memorandum
McLaughlin, Cryan &
Co., 1 Wall Street, New York 5, N. Y.

Colorado

Security Traders Asso¬

ciation annual convention.

League Club of Chicago).

Up-to-date progress report
Reynolds & Co., 120 Broadway, New York 5, N. Y.

Inc.—Analysis—Reynolds & Co.,

—

Auchincloss, Parker &

Inc.—Report—S. D. Fuller & Co., 39 Broad¬

VENTION OF NSTA, GRAND

Analysis

—

New York 6, N. Y.

Reynolds

Is¬

pre-outing breakfast at Welty's

.

Orradio Industries,

(MaekuiM

Municipal Bond Club of Chicago

Investor—Booklet—

Corp.—Memorandum—Hemphill, Noyes

—

Club.

Country

Sept. 11-14, 1955
land, Mich.)

Sept. 15, 1955 (Chicago, 111.)

Memorandum

—

day at
Golf
and

Moines

Also in the same bulletin is

Y.

5, N.

field

annual

Des

Wall

Philadelphia 10, Pa.
Old Hickory Copper Co.—Report—General Invesing Corp., 80
Wall Street, New York 5, N. Y.

♦

Aro

Vickers Brothers, 52

Redpath, Land Title Building,

Broad Street. New York 5, N. Y.

American Encaustic Tiling Co.

sociation
the

National

Imperial Chemical Industries.

on

Tripp & Co., Inc., 40 Wall Street, New York 5, N. Y.
*

York

New

Lewis & Co., 63

Natural Resource Stock.

Blyth &

Bobbins—Data—Bruns, Nordeman & Co., 52

Western Air Lines, Inc.

"Monthly Invest¬
Broadway, New

Sugar Production—Bulletin regarding new
crops—Lamborn &
Company, Inc., 99 Wall Street, New York 5, N. Y.
Tax

—:

Co., 23 East Second South Street, Salt Lake

Inc., 70 Pine Street, New York 5, N. Y.
Speculation

Memorandum

Singer Manufacturing Co.

Municipal Bond Market—The influence of individuals

used in the National Quotation Bureau

—

Market—In

curities Co., Ltd., 6,

—

Street, New York 5, N. Y.

McKesson,&

Street,

of

—

Investment

Iowa

.

Maule Industries, Inc.

Company, 51 North High Street, Columbus 15, Ohio
Foreign

Chicago 3, 111.

South La Salle Street,

122

(Des Moines, Iowa)
Bankers As¬

1955

Sept. 8,

Telephone

5, N. Y.

Atomic Reactor Diagram in four colors with portfolio informa¬
tion on Atomic Fund as of June 30, 1955—Atomic
Develop¬

Field

Investment

In

Inc., 40 Exchange Place, New York 5, N. Y.

International

Review—Now booklet—Harris, Upham & Co.,
120 Broadway, New York 5, N. Y.

COMING

Haupt & Co., Ill Broadway, New

General Gas—Analysis—Ira
York 6, N. Y.

Thursday, September 8, 1955

...

Company—Analysis—Laird,

American Transportation

General

It is

Financial Chronicle

The Commercial and

3

(976)

Box V 98, Commercial &

Financial

without obligation

Chronicle,

25

Place, New York 7, N. Y.
NY

1-

376

61

Broadway. New York 6, N. Y.
Tel.:

(Mewling Green 9-0186
Head

Office

Tokyo

DEMPSEY-TEGELER & CG.

Park

Volume

Number 5462

182

The Commercial and Financial Chronicle

...

(977) 19
not

Creating Confidence in

To

foreign investment has played

Warns, however, that for Canada to

dian

adequate capital towards this end, it will be

an

to

Canada's

First

economy

agricultural, but
has

World

War

primarily
the picture

was

now

changed that, in 1954, only

so

'7 %

this

of

example,

investors.

two

and

the

half

a

nine

last

billion

time,

GrossNational

creased

Product

was

from

cilities.

in

money

that
and

source,

39%

was

produced

b y

manufac¬

the

turing,

con¬

struction and

refinery capacity and for
and marketing fa¬

period,

nine

same

hundreds

year

millions

#f

of
the

dollars have been expended in

production

production
Since

war's

developed

tries.

cost

steel

a

and

end,

the
the

in
in

of

of nickel

the

of

aluminum,
titanium,

of

development

mining indusThe

this

In

copper.

industry

at a
mil¬

$800

speed of this

lions have been spent for the ex¬

from
E. T.

lion.

conversion

pansion of the chemical field.

agricul¬

ture

McCormick

indus-

to

trv

shown

is

by the fact that in 1926 the indus¬
trial figure was 28%—a difference
of 11%

in this measure of

the

And

billion

tc

has

in

from

grown

1929

to

$25.5 billion this

This Gross
incidentally,

than doubled in the last nine

more

dustrialization

agriculture,

increasing in¬

and

as

from

away

prime economic

a

base, has been accompanied by

a

significant increase in the Ca¬
nadian
population,
particularly
during/the last 10 years which saw
increase

populace

three and

leviating to
mands

tial

for

for

great degree the de¬
work force

a

30%,

by

half million, al¬

one

a

so

essen¬

While

economy.

discoveries

the

been

of

strategic

during and since

resources

These in¬

the Second World War.

cluded not only crude
and natural

other

gas,

such as highilmenite — the

minerals,

ore

but

oil, iron ore
but a storehouse

uranium,
of

titanium, nickel,

and

bestos,

as¬

mention

to

copper,

few.

a

These discoveries have

provided

the foothold for industrial expan¬

Where

sion.

Canada

once

im¬

ported almost all her needed
troleum
in

her

own

a

States.

from

the

In

December,
States

nine

creased

from

of

$4,557

million

$1,897

pe¬

not

to satisfy

only

domestic

needs

but

to

Practically all of the Provinces
made

the

balance

invested

by

Coyne,

1975,

for

their

contributions

to

fields of this

hope

and

processing for domestic and
foreign markets could never have
accomplished

capital

without

investment.

the

dreds

and

found

thousands

who

were

calculated

had

willing

risk

to

to

be

take

involved

in

this nature.
In the
Canadian oil industry alone, for

the

of

address

National

by Mr. McCormick before
Association

of

Securities

Admin'ctr^*--s, Vancouver, B. C;, Canada,

Aug. 30,

1955.




trust

and

that

potential will be achieved. I,
one,
am
confident that this
aim will be gained. And I make
this statement despite the fact that
I

find

it

best,

leave

to

as

general

a

field

the

of

rule,

economic
appears

that

accurate

are

soon

forgotten but inaccurate

live

too
ones

forever.

on

It

prophecies

seems

to

particularly bright future in this
new
Atomic Age that we have

a

With

of

the

grade

her

her

to

year

of

with
that

year,

high
in¬
mounts

of

sources

ore,

potential

brother

store

resources, as one

principal
uranium

vast

an

Canada with
the United

country,

States, might well

prove

will

flow, to residents of less fortunate
nations

throughout

standard of

citizens
way

the

living which

now

accept

as an

world,

a

our own

ordinary

of life.

But

for

that

Canada

to

And

have

we

naive

high-pressure,
been

exceed¬

hasten

share

our

the

understand

even

those

in

north

some

the

I

below
this

be

of

say

these
I
of

some

country

individuals

must

to

border.

that

time

migrated

These

ago.

are

whose, activities

ended

by public educa¬

tion, v appropriate

legislation
or
otherwise, if investor confidence
in Canadian investments is to be

maintained.

assume

When

considers the

one

its

capital

August

stock

prices

capital projects

during the past post-war period.
capital must be obtained

then

were

stand

Canadian

upon

I

these

wish

speculative

to

have

impact far out of

an

propor¬

because

so

there

too

low.

uation

* wefind: them

as

today.

may ^ help
toward
thinking, despite the rosy glow which

now

pervades

Wall

Street

and

From

of

South

Article:

Korea

trend

The

industrial

caused

was

stock

only the beginning of

TODAY'S

VIEWPOINT:

nated by talk of
the

a new era.

for 20 years,

decades, particularly in
States, taxes have had
serious impact on the formerly

is

and

placing

are

in

vious

their

tax-free

—having

debt

to

come

conclusion

dollar

vestment

the
that

return

would

on

surplus

securities,
fairly

tax-free

a
a

in¬

$100

them

net

ob¬

more

The stock market is

on

the war, which had an almost
the minds of investors and business¬

the

in

the

has

middle

afford

and

to

whom

the

common

entails,
high

calcu¬

stock in¬

investors

—

the

to

stock

common

would appear attractive.
These efforts, to thus broaden the
base of

needed

cess.

capital

with
And

efforts

.

1956 will

.

our

.

bulls

many

to

the average

level of the last 30

years

was

hand, the prices of secondary stocks

are

only 143. On
much lower.
of

in

315

first

the

of

week

February, 19®M5, and this index is now

only 151.
TODAY'S VIEWPOINT:
ever

before.

Stock

prices

are

far higher now

The Dow-Jones Industrial Average is about

460, whereas the average level of the last 30 years was only
174. Standard & Poor's broad average of 420 industrial stocks
now

From

higher than the 1929 peak.

86%

low.

this

Article:

1950

A record of

table

is

it

In relation

earnings for 79
easy

compute

to

to

earnings, stock prices are
is shown in Table 1. From
that the average earnings for

years

$7.48; but current earnings are $19.90.
In
words, earnings are 166% higher than the average of the

last 30 years were

the

other
last

30 years.

Therefore, it is not surprising to find that indus¬

trial stock prices are 45% higher

than the average of the last 30
Continued

on

page

stockholdings and provide
for

pressed for

years

thing

their absence.
Even
match 1955."
This, itself,

by

top or
Further good news could not cause many
people to become bullish, because so many are bullish,

other

income

lower

assume

lated risks that
vestment

One of the Wash¬

surprising

search for investors

group,—investors who could leai;n
and

most

great unanimity of opinion.

Standard & Poor's Index of Low-Priced Stocks reached a peak

investors

municipals

conspicuous

very

a

warning signal.

whereas

is

a

"The

From 1950 Article: Historically the market is in high ground.
May and June, 1950, the Dow-Jones Industrial Average was the
highest in almost 20 years.
Even now the DJIA is about 208,

than

into

were

states:

In

mon

necessitated

domi¬

now

any bad news causing a few of
change their minds could increase con¬
siderably the number of bears.

the

than

a
$4 return on a $100 com¬
stock, when the $4 was sub¬
ject to a tax of 60% or more. The
flight of many of the old reliable

and

already. Conversely, however,

equity financ¬
the high income

families

funds

a

more

of

of our country, the so¬
phisticated investors, have either
eliminated
or
greatly
reduced
their purchases of common stocks

taxes

The pessimism and fear caused by

have evaporated at last.

the doubters think

few

the United

of

greater down¬

great depression and by

men

an

during the passing of the

Many

a

profits

a

'Bears'

ing.

by

a temporary reac¬
long upward trend caused in part by inflation. Some light
may be shed on this subject by studying the question of whether
stock prices today are high in relation to intrinsic value or low.

tion in

ize that

sources

dominated

now

the prospect of excess
Others think that this was only

price controls.

news-letters

reliable

is

by

turned up, however, was

involved

market

In the first 18 days after the invasion
stock prices declined
13.5%.
Some

ington

problem

m. templet..

j„h„

1950

survey

a

Main

Street both.

here.

last

1

The V
clear

comparison

We in the securities business real¬

ancillary

Now

interesting to

with facts and comments about the sit-

continuous influence

is

&

by the writer

views then and now, we first
quote ■
the 1950 article and then follow "

our

emphasize

transactions

is

Commercial

from

tion to their relative number.

This

the

article

just how high stock prices are
Accordingly, by way of comparing

now.

ward

securities.

of

an

bring up-to-date each of these: five, lines
of thought which
may help us to under¬

people think that this

continuously coming into
being, it is deeply regrettable that,
through the activities of a minor¬
ity of dealers, a cloud should be
are

cast

issue

five years later, it is

some

da, and the many such prospects

some

growth,

have

the past several
of suc¬

measure

This advertisement appears only as a

are

continues, but these
being slowed consider¬

ably because the activities of the

matter of record, these

securities

having been placed privately through the undersigned.

it

NEW

ISSUES

fly-by-night operators are driving
many of these new investors and
other would-be investors from the

General American Transportation

equity markets.

Corporation
Problem of the Fringe Operator
As

all

we

know,

this

fringe

operator problem has been
in

the

and

side

of

the

Canadian

a

United

$11,209,500

thorn
States

Governments

for

several years past. Over six years

Equipment Trust Certificates, Series 54
Due serially to June I, 1975

Dated June 1, 1955
I

*

•

while I was with the United
States
Securities and Exchange

ago,

$10,000,000

Commission, Ozzie Lennox and I

ments

in

a

an

Equipment Trust Certificates, Series 55

conference table with

of

effort

botfy
to

Dated

govern¬

arrive

at

organization

September 1, 1955

Due serially to September 1,1975

a

and

And this

and holds

ago,

abnormally high."

stating five lines of thought leading to the conclusion that

coming President of the American
Stock Exchange I have continued
to work on this matter, for our

on

1950

that

solution to this

expended

five years

was

now

contained

the international situation.

will

be required, an amount of
capital funds which will pale into
insignificance the sum invested

10,

Chronicle

investment opportunities
that have been available in Cana¬

representatives

industrial nations,

The
Financial

numer¬

fine

ous

sat around

vast and constant flow of

it

"are

•

the
a

on

security dealers,

have

rightful prominent position among

producing

stock prices

ex¬

the present
in the oint¬

at

fly

a

tactics

characters

to be the

which

from

totally different from v/hat

task

ingly non-ethical if not downright

been

that Canada has

me

today.

insuperable.

yields

prophecy to others, for it

Com¬

panies and individuals by the hun¬

more

for

fountainhead

area.

these ever mounting
discoveries, and their production
course,

billion,

this

from

large mines and oil and gas

of

Governor

of $55

I

1955.

fields in Labrador to the

♦An

Canadian

than double the amount indicated

iron

the

re¬

Gross National Product for Cana¬

da

ranging

projects

of

of
Canada, has been
forecasting a potential

as

dustrial

of

in

is

fraudulent

two

E.

Bank

quoted

of amazing discovery,
from the new coal and

aid

capital

new

consisted

earnings

J.

this period

been

in¬

million, $3,396
an increase in

was

strategic natural

Of

Canada

direct investments. Of this amount

entered.

many

ending

years

in

million represented

tions.

ore

United

$4,990 million to
Of the total in¬

million.

crease

the

1954, the total United

export these products to other na¬

have

the

of

individuals

in

investment

$9,547

iron ore, she is now

and

position

a

part

from domestic
significant amount has

corporations

whose

over-all

come

obtained

and

the

have

well

as

extensive

base

has

Mr.

Discovered

grade

greatest

this

Vance, Inc., New York City

lished in the "Chronicle" of
Aug. 10, 1950, and the situation
Finds conclusion of his study of present situation is

corpora¬

offing,

from

However,

there

that

properties.

Notable

of

the

dustry

Strategic Natural Resources

natural

about

investment in the development of
Canada's natural resources and in¬

and

productive

growing

a

to

U. S. Investments in Canada

been

The trend toward

or

projects, has amounted
$81/2 billion since 1946.

sources,

years.

this

capital investment in public
utilities, principally for the de¬
velopment of new hydro-electric

$6.2

year.

National Product has,

And

new

estimated

an

Additional hundreds of mil¬

Product

National

Gross

referred

growth.

Cana--

glowing prospects

the

far

fringe-operating

has

Canada

approximately

in

&

Investment analyst makes comparison between his statements
regarding the situation in the stock market in 1950, as pub¬

confi¬

Canadian

investors by a few

transportation

derived

the
both

of

foisted from time to time

dollars

This

years.

be

problem created
the few get-rich-quick flyers

by

not only for explora¬
development, but for in¬

tion and

will

ment. That is the

spent

was

country's

sustain

of

be

cellent.

expendi¬
to more than

tures have added up

,

Templeton, Dobbrow

issuers and dealers have been

capital

total

it

High Is the Slock Maiket
By JOHN M. TEMPLETON

in

By and large the records of your

sus¬

numerous

the

How

foreign investors in the

are

should

and praises

Before

to

end,

With the

that

fine investment opportunities exist in Canada,
Canadian integrity, but points out problem of the
"fly-by-night" and "fringe" stock operator still exists. Urges
a public investment education
program.

Says

as

Securities

and interest

and

tions.

assume

necessary

of both domestic and foreign

the confidence

tain

domestic

sources

Confidence

this

securities

industrial nations and to receive

among

gain

dence

Mr. McCormick calls attention to the vast expansion of the

rightful position

Create

necessary

President, American Stock Exchange

its

fresh

foreign

Canadian

By EDWARD T. McCORMICK*

important role.

from

but

•

Must

Canadian Securities

Canadian economy, in which

only

sources

well.

problem. Since be¬

is

probably

Continued

on

more

page

26

Kuhn, Loeb & Co.
September 7,1955

25

The Commercial and Financial Chronicle

20

tors

E

York Stock Exchange

Thursday, September 8, 1955

.

and

about credit
should be made abundantly clear
it relatejs

as

the securities in¬

to

dustry and to our economy as a

subject

are

of which, as

the

behind the

steam

unique

today is undoubt¬
edly derived from the use of the

place in our
rational life.

nation's pool of outstanding credit
which
exclusive
of
government

First, credit
has

a

it

Whether

used

a

car,

nance

all-time

high, and can be traced
in
great
part
to
the
upward
movement of our economy. Of the

home

a

freezer

totals

vest in Ameri-

is

it

meas¬

a

of

ure

mortgages another $80 billion.
As of June 30, about $4.5 bil¬
lion
of commercial
bank credit

industry,

c a n

our na¬

to take

Funston

Keith

the

future,

a

measure

and

of our confidence

In that future. These factors—risk-

than

taking and confidence—more

by the securities

used

the public to
purchase and carry securities. Of
this total, some $2.9 billion rep¬
resents loans by banks to brokers,
industry

a

calculated risk
on

being

was

tional willing¬
ness

outstanding, consumer credit
over $30 billion, and home

debt

in¬

or

amounts to $350 bil¬
figure represents an

This

lion.

buy
f i -

house,

a

economy

obligations

is

build

to

S.

and

by

b,y

and

$1.6 billion represents loans
to the public. This is
on deposit with

banks

anything else explain our extraor¬

apart from money

dinary economy.
Second, credit is absoluately es¬
sential to the securities industry,

balances, which

specific jobs the indus¬

and to the

try must perform. It is the key to
tie underwriter's ability to launch
stock issue

new

a

.

the dealer's

.

.

capacity to maintain his inventory
.'the broker's ability to finance
l is customers' cash and margin,

brokers

customers'

in

credit

free

to

be used

may

help finance the public's transac¬
The

tions.

bank

of

billion

$4.5

credit, amounting to

1.3%

of the

nation's

pool

is

total

credit

im¬

portant to the economy out of all

proportion to the dollars involved.
for

Consider

the

moment

a

two

.

in

Credit,

transactions.

short,

1 lays a role in all the securities
industry's functioh's, many of
which are not well known.

Credit, naturally, must be used

wisely, and it must be properly
employed if it is to do the job for
of

segment

ally

more

or

securities
controls

has

society

our

this

other

No

intended.

it's

which

learned

lesson

more

person¬

painfully than the
We feel that

industry.

credit

market

stock

on

tie squarely in the public inter¬
est.
We
don't
simply want a
sound credit structure; we have to
Lave

must

it

one—and

built

be

recognition of the industry's
inherent dependence on credit.

en

a

It Is Important

Credit:

1 larket

Out of All Proportion to the

Involved

Dollars

Twenty-one years ago Congress

wisely

gave

ernors

of

the

of

Board
Federal

the

Gov¬

credit

for

excessive

the

of

use

the purchase or

carry-

i2g of securities." As part of its
troader authority the Federal Re¬
serve has the task of "regulating
the

general flow of credit
money with the objective of

tributing

to

healthy,

a

and
con¬

growing

economy."
The

Federal

in

carrying out these objectives, has
-fficult and thankless task in the

though the
i Vvent of the law is clear enough,
f xe Board must deal with prob3 .ms that are simply not subject
3

ublic

service.

For

to easy definition. When
excessive?
When does a

is credit

healthy
unhealthy
< conomy?
The answers are in¬
fluenced by personal opinion; the
i icts are subject to judgments and
interpretations upon which reai enable
men
can
differ; behind

economy

the
is

facts

become

are

such

imponderables

public's motives

.

.

.

the
the public's
.

.

.

capital for American business
—capital that gives rise to new
plants, new jobs and in the final
analysis, new goods. The latter,
in turn, creates the need for con¬
sumer borrowing, and contributes
to a higher standards of living.
new

the

38th

tional

address

Annual

Association

trators,

J,

an

Victoria,

by

Mr. Funston

Convention
of

B.

of

Securities

Cw

the




Na¬

Adminis¬

Canada,

1955.

at

Sept.

securities

roles of the

Both

dustry—meeting

the

vestment needs and

industry's capital

in¬

public's in¬
helping meet
not

needs—are

only extraordinarily complex, but
they are part of the root system
of our free economy. And both of
them

the

involve

market

other things, it assured
of the growth money
that
was
needed, when it was
needed.
%

capacity

to

volved.

But

of

use

credit—

Brokers

securities industry—
underwriters, brokers, dealers and
specialists — and second by the
public to carry out its investment
by the

aims.

Actual

certificates

paid, or while
in transit. In addi¬

are

tion, specialists who have to carry
supplies of stock in order to pro¬
vide an orderly market use a little
less than 1% of the total. Odd-lot
dealers also

handle
These

small amounts to

use

inventories.

their

to about
It
is money that is required from
day to da.y for the securities in¬
dustry's essential but little-known
figures add

The

$4.5

billion

currently in

use

is

It

same

every

way

man

uses

rary

tory,

subject to considerable discussion
—and

to

misconceptions.
Twice this year, initial margin re¬
quirements have been increased.
Among

many

portion of the public, a
syllogism has apparently devel¬
oped that
goes
something like
a

market

credit

is

used

only
for margin trading; margin trad¬
ing is speculative trading; specu¬
lative trading is synonymous with

betting

on

Conclusion:

worse.

wheel

roulette

a

or

market credit

he repays his loan

situation

the

needs

the

truth

Let's

trace the basic
throughout the laby¬
of our economy, it would

market credit

rinth

astonish
most
people
relatively small amounts

probably
that such

accomplish

much.

so

This
brings us to the second step in
the syllogism — the fallacious as¬
sumption .that margin trading is
wholly speculative trading.

for

margin

there

is

vinced

that

see

is anything
credit

that

in

.

.

securities

want

We

know

stock

most

the

that

market

use

credit

of

has

nothing to do with margin trading
as the public conceives it.
A large
portion of the market's borrowed
money

and

their

serves

brokers

permits

underwriters, pro¬
with working cash
them

day-to-day

latest

to

carry

on

operations.'

Specifically, of the $4.5 billion
total, underwriters and distribu¬

.

is worth

.

Transaction
on

it

understand
a

It

buy

the
be

them

is

all

tremendously im¬
of our people to

that

if

credit
plays
helping them
expendable things they

desirable

role

in

for example—credit
desirable and per¬

car,

just

as

more necessary

to

—

try to build

a

in helping
permanent

purchase of securi¬

ties.
When

we

of

look
bank

at

the

credit

total

in

the

market, we find that roughly 55%
of it is being used by the 'public
carry

term

$5,000

under

a

of

is active in less than 5%

trading.
The question of who's doing the
trading does not, of course, come
to grips with another issue that
isn't
discussed
often
enough: is

speculation desirable

or not? . . .
permitted to
creep into our economy, or does
it serve a valid purpose?
These
questions grow out of the third
step in the syllogism I mentioned

it

evil

an

out

its

investment

Add to

long

and

by

our

in¬

be

will

needs

summer

that

estimated

we

we've

smooth working

complex

achieve

us

of an increasingly
and it will help

economy,

dramatic

most

our

single objective—a vigorous kind
of capitalism in which millions of

earlier—the mistaken belief that middle-income people share thej
speculative trading is synonymous rewards and risks of stock owner¬
with betting. Until the role of the
ship.
trader is explained fully to all of.
It is time for us to recognize
our
people, our free enterprise that a reasonable use of credit
system is going to labor under in the market is no different from

of public misunder¬

handicap

a

reasonable

a

other

The

public, I believe, has never
lost its conviction, born of 1929,
that there is something inherently

immoral in the specula¬

wrong or

people
—personally and in our business
life—we speculate in every gain¬
we

as

a

We

undertake..

the crops we plant,
the products we develop, the
prices we charge and the food we
buy.
And in America's market
place, the trader speculates in the
shares
of
our
great companies.

our

risk-taking,

all,

after

in

economy.

people we're proudest of
willingness to take risks, to

our

a

the future,

on

and to set
for our¬

gohls

ambitious

more

But the fact is that

activity

is,

and as

venture

tor's activities.

speculate

Credit

credit

of

use

of

areas

selves.

G. A. Van Pell With

on

Dean Witter & Go.
&

Witter

Dean

Wall

14

Co.,

members

Street, New York City,

He exhibits

Just what is his role?

willingness to buy securities
when the public wants to sell, and
a

a
willingness to sell when the
public wants to buy. He assumes
proportionately greater personal
risk, and in doing so he helps
provide an active, cont'nuous
market. As he performs this func¬
tion be frequently uses credit—

is

his needs.

when it does

the

of
.

.

vides

not

are

bear,

can
a

of

as a

.

.

a

man

service

the

to

whole, and particu¬

it should be.

comparatively

few

traders

in

helping provide an orderly market
for a great majority of long and
short-term investors, who, accord¬
ing to our latest Study, accounted
for 85.5% of public individuals'
transactions.
It is

important for the public to

appreciate this, because the dollars-and-cents

our

announced

have

Arthur

Exchange,
joined

the

Bond

has

De¬

Municipal

the

Charles

that

Pelt

Van

in

firm

partment, Mr. Van Pelt will trade
in

the

bonds.

revenue

in

has

He

been

business

bond

municipal

for 25 years.

;

Richard Kaufman Joins
T. C. Henderson & Co.
CEDAR
ard
to

economic

goals are without a parallel in
history.
The trader, and credit,
have key roles to play in
this risk-taking.
We know that
memories of the
dangerous ex¬

remain very
strong. The wise safeguards such
as
margin
requirements which
of 26 years ago

the

Iowa—Rich¬

RAPIDS,

been added

Kaufman has

W.

Staff

Sales
&

derson

Inc.,

Co.,

C.

T.

of

Hen¬

Second

1974

Avenue, S. E.
Mr. Kaufman's

father, Glenn D.
Vice-President,
has

Kaufman,

since 1933.

been with the firm

Brokers

Square Glub
To Hold Ladies Hight

nation is about

to risk to reach its 1955

cesses

Pelt

Van

of the New York Stock

He is interested

quently helps the investor com¬
plete his transaction—and at the
best possible
price. This is the
little-understood role played by
a

A.

as¬

larly to the average investor. In
our
market
place the
investor
takes for
granted that he will
find a buyer or seller—and that
as

Charles

funds

needed

greater than those
the speculator pro¬

desirable

economy

.

not deprive the rest

economy

sumes

he

When this credit

and when the risks

.

fi¬

does—to

businessman

any

kept in reasonable bounds

The
New

Brokers

hold

its

ladies night on Friday,
Masonic

the

scheduled
in

dinner
at

Club,

9

71

p.m.

the

6:30

for

main

Walter

of

annual

Oct. 21 at
West 23rd

Cocktails and get

Street.
are

Club

Square

will

York

together

p.m.

dining

G.

with
room

Peterson,

Josephthal & Co., is Chairman of
the

event.

u

have been built into the economy

transactions.

this the 25%

credit used

short-

Supply

■

this

is

and

Credit

$375 billion in new plant" and
equipment between now and T965.j
This is indeed a staggering total
that will require huge amounts of
new equity
capital.
Credit will help us realize our
economic goals by facilitating the
flow of venture capital.
It will
help s e as on ed companies and
young industries attract the basic
capital needed to provide a higher
living standard. It can aid in the

year

a

Reaching

U. S. corporations will need some

will

amount

to

this

in¬

primarily in one thing: the best
possible price for his securities.
The presence of the trader fre¬

buy stocks.

these facts.

for

earning

man

year

Soundness

Tomorrow's

Study
an in¬

with

man

$10,000

Future:

the

at

finitely greater than today's. Just

to

margin
transactions
are
synonymous
with trading trans¬
actions, is not warranted based on
think

the

is

risks

recent

our

business, and of mil¬
people.

Of

who is
participating in two-thirds of all
margin trading transactions, while
the

Look

On

is

that

I

the

handle

'aI'

maintain

to

New Economic Goals Will Hinge

the individual in¬

long and short-term in¬
vestment purposes. It is clear that
the
assumption so often made,

portant

A

the
his

being drawn into
speculate beyond

over

nance

to

for

were

it

shows
come

as

repeating that three out
four margin transactions

of every

to

1929.

the finan¬

it impor¬

public's
specula¬
invariably

ours—must

our

the danger of the aver¬

on

man

be¬

.

revealing light

a

reasons

borrows

vestor

.

age

be¬

so

'.

add

to

Public

estate via the

First, is market credit used only
margin trading?
It assuredly

do

save

is

credit

.

for

is not.

fact

use

their
income through regular dividends
because they want to build an
estate and hope to see their capi¬
tal appreciate
and because
they want to protect their pur¬
chasing
power.
And
over
the
years,
sound investments have
permitted them to achieve these
objectives.
they

cause

haps

order and

who

they want to

cause

the

Yet

people

invest

to

three

in

credit,

investor,
than a specula¬
superimposed on the

structure.

most

all
up

public
uncon¬

market

more

bubble

tive

on

what the facts really are.

of

core

remains

stock

and

used by the individual

can

counts.

hard

die

hard

a

which

opinion
as

transactions.

attitudes

Some

center

in

as

helps

market
that
is o rderly,
and broad enough to meet

lions of

the

For

credit

the needs of

excessive

over

tion—and

ful

Finally, there is the volume of
market credit used by the public

further from

them

we

actually

be

—

take

he

as

could
uses of

If

money.

open

purposes,

find

we

make.

to

his standing.

as

that loan from time to time

coud

Nothing

inven¬

he renews

and

permits,

want—a

is used for betting.

tempo¬

needs, he builds his

the real

bank credit

of

business¬

corner

he finances

it:

the

much

used in

functions.

Study throws

in the market is

up

25% of the credit outstanding.

Our

Uses

of

waiting to be

are

Public's Misconceptions About
Market Credit—And Its

one-half

about

use

cent of market credit to
carry securities for their cash cus¬
tomers during those few days they
per

a

community

liquid

distinction

concern

one

about

to

shares

this

cial

i.t is used, by and large, by
upper-income individual. Thus

tant

.

first

vides
•From

of

millions

of

needs

the se¬
meet the

people quickly, Jjpenl^ and con- •
veniently; and it must help raise'

an

the public's confidence

performed by

investment

this:

Reserve Board,

I iherited what is perhaps the most
c

jobs

curities industry: it must

Reserve

System the job of regulating sec irity
loans "for the purpose of

preventing

basic

and

the

Among

will testify,
precise measure¬

to

of

Much
U.

amounting
for trading

stration of market credit at work.

ment.

whole.

20%
used

is

is

research people

most

It

of

number

And

$850 million?

the company

of mind—none

state

the

balance—the esti¬

the

handle the issue
successfully—and they were pre¬
pared to borrow as much as $200
million. This was a graphic illu¬

supply of credit.

things

Several

of

ing earlier this year, the under¬
alone borrowed $50 mil¬
lion to help them

market that lists almost four times

picture of about 80%

a

writers

involved and scores the mis¬
actual uses. Con¬
economic goals will hinge on soundness

cludes, reaching new

What
mated

we've

million stock offer¬

$325

have

you

of market credit.

are' be¬

General

time,

some

Motor's

conceptions about market credit and its

/

in

seen

proportion to the dollars

all

carry

most dramatic underwriting

Says market credit is important out of

securities transactions.

to

ing distributed to the public and
maintain inventories.
In the

role of credit in business and in

Mr. Funston discusses the

23.5%—

about

needed

are

to

FUNSTON*

President of the New

?

that

securities while they

new

Role in the Stock Market
By KEITH

for

account

funds

Credit: A New Look at Its

.

.

.

(978)

of market

industry—un¬

are

not

so

Today,

well grasped.

for

example,

C. W.
the

bank

Lockyer Opens

and

by member firms of
the New York Stock Exchange is

WASHINGTON, D. C.—Charles
W. Lockyer is engaging in a se¬

specialists—in the performance of

only one-quarter of the 1929 peak,

curities

their

yet it serves to lubricate a stock

1022

credit in

derwriters,

brokers,

day-to-day

dealers

operations,

and

use

business

from

offices

Eighteenth Street, N. W.

at

I

Volume

182

Number 5462

.

The Commercial and Financial Chronicle

..

(979)

From

More

Washington

Ahead

of the News
Mr.

little

surprising that in all the speculation as to whether
run again and
it he doesn't whether the mantle
upon Vice-president Nixon, that the name of George

tali

would

Humphrey,

Vour

Secretary

correspondent

of

the

Treasury,

convinced

is

has

cropped

not

1

up.

running

tnat

any

with

the

Mr.

the

have

to

seems

pinnacle of

armies

our

1

and

overseas

I

not

different.

be

power

perienced later has been
power,

Readers

believed

never

Colorado

a

what

that

greater respect

today

there

is

no

whom

he

has

a

-

all

of

what he wanted.
it is

life he has

had

study in human nature and mind

a

the

over

little squirt of

official

knack

of

.

Boards

readers

s

and

note

and

the

action

Fathers

my

their

From

of

been

the

I

hrank

Roger

W.

Babson

looking

thereof,

at

have

I

newshoppingin connection

summer

These

de¬

new

velopments have their usefulness
to

ters

"downtown"

will

in

some

East

view

difficulties.

as

house

which Secretary of the Air Force Harold Talbott was ridden

cut„

Humphrey told the Senate Finance Committee very
frankly when his appointment was before the committee, that he
had no intention of divesting himself of his stock in the Hanna
town,

\

city parking
shopping-cen¬

These

continue

to

be

patron¬

ized

by people
neighborhoods.

*

1916

or

West,

Find out for

city

North

Then

fine your speculations

direction.

The

shopping

exclusive

is

Mr.

growing in another direction, and
this offers

some

is about five months older than the President,
is to balance the budget.

accomplished the story has been that he would resign
>,

sign
>.

Presidential

is

not be averse to the job, or the nomination in the

that he would
event

quit, and there is reason to
whom Mr. Eisenhower would more

Mr. Eisenhower would like to

believe

is

there

one

no

like to bestow the

on

mantle.

•

gains

greatest

their workers in

for

too

all history, their political

quite hollow and will probably be received by the
workers in that vein.
>

>

seem

Chicago Mun. Bond Club

Form Intermountain Sees.
(Special to The Financial Chronicle)

Pre-Outing Breakfast
CHICAGO, 111. — An informal
breakfast or brunch will be held

-

way

business.

Company,

Incorporated,

seph Condon, McDougal

These

Two With Yates, Heitner
Victor F.
Battefeld and James J. O'Brien
have
become
associated with
Yates,
Heitner
&
Woods, 320
North Fourth Street, members of
the New York and Midwest Stock
ST.

LOUIS,

Exchanges.

Mo.

Mr.

—

Battefeld

was

formerly with E. L. Zoerning &
Co.
Mr. O'Brien was with New-

hard, Cook & Co.




to

1714 South Broad¬

engage

in

Officers

a

are

securities
Robert

J.

Logan Adds

L.

I

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—John B.
Alford, William C. Bowers, Rob¬
ert

E.

Morrison,
have

staff of J.

and

been

William

added

to

Logan & Co., 210 West

Gordon Bros. Admit
Gordon Bros. &
Co., 120 Broad¬
way, NeW York City, members of
the New York Stock
Oct.

1

will

partnership.

admit

usually

per

property

sell

to

All

for

second;

on

Irving Feig to

side" locations. One
Do not

own

It

is

of

that

a

a

from

un-

John F.

Barrett
Wall

seil

to

Spalding With i

Herrick &

that John F.

associated

M.

Midwest

Spalding

was

with

them

representative
and

business from offices at 707 Mar¬

sioner of

ket Street.

for

the

getting into such a zone,
same
people are selfishly
fighting to keep others out.
a

result of this pressure,

a

Business

It

soon

the

This advertisement is not to be construed
The

Zone

gradually rises.
expensive that
residential building thereon is re¬
becomes

so

NEW

developers, who should

be

will

be

zoned

for

is

it

real

good

estate

property

with

thereof.

ment

the

city's

COMMON
(Par Value $.10
Colonial Aircraft Corporation
of

located

city

and

map

Park, Long Island.

$1.00

per

Share

Copies of the Offering Circular may he obtained
by mailing the coupon below.

Glick

a

small

copy

shaded

map

thereon
areas

from

of

your

the
the

Co., Inc.
NEW YORK 5, N. Y.

Telephone Dlgby 4-7310
Gentlemen:

Please

Colonial Aircraft

mail

me

a

copy

of

the

Offering Circular

Corporation.

Name

Address

dif¬

big

which the official has on the

wall of his office.

&

120 WALL STREET

of

city's Zoning Laws and study its
Zoning Map. If your Building In¬
spector cannot give you such a

ferent

Amphibian aircraft. Its offices

Park Airport, Deer

Price:

add

spending time read¬
ing the stock market or studying
charts, I advise you to read your

buy

Skimmer

Deer

Share)

what

me

How To Speculate

map,

at

per

is engaged in the development

comparison should be

a

especially helpful to present prop¬
erty owners in preventing their
land
from
being "stolen" from
them by speculators who do
keep
posted.
Instead

C-l

the Model

are

STOCK

assess¬

shows

developers think of it. Let

a

Colonial Aircraft Corporation

now
usually a
speculation.
In

This

or

300,000 Shares

business.

comparing already the "bid
prices" for some of this fringe

offer to sell

ISSUE

This is bad for the city.
growing city needs; active real

encouraged. Some day this "fringe

an

of an ofler to buy any of these securities.
offering is made only by the Offering Circular.

tarded.

estate

as

solicitation

near

City

State

Tel.

as

the
Mr.

Commis¬

.

As

in

Southwest.

formerly

of Missouri.

price of residential property

an¬

Spalding ha?

Securities

Ethel

:

Co., Inc., 35

Street, New York City,

nounce

to

increased; but

to

Barrett Herrick & Co.

anxious for the "Busi¬
be

1944

ciation.

Heuser is engaging in a securities

—

the

governor

and

wholesale

Mo.

of

Association

ning Council, Finance Division, of
the American Management Asso¬

become

LOUIS,

was

member of the Plan¬

.

ST.

He

group

national

Association

1947. He is

to "buy right."

as

business.

the New York-New

1943, and

thought:

important

as

So¬

unusually-

an

Bankers

in

too much land at an.y

profits

of

Investment

be

Opens Office

ex¬

headache

more

Point

areas

than

more

has

Jersey-Connecticut

foot;

of these

banking

Chairman

property.

square

West

these

J.
the

Seventh Street.

Exchange,

residential

likely

former Cadet,

acquaintance in the invest¬

ment

business property

highest

industrial last.

have

to

city officials, Those outside

that such

Reigel

Chronicle)

I

zoned for business.

areas

Zones"

after

pressure

local fights are a

areas are

ness

which

is

there

pand the

the

city

every

land"

McCoy, President; Marion A. McKeever, Vice-President; and John
E. Holmes, Secretary-Treasurer.

and Jo¬
and Con¬

don, Inc., will be hosts.

(Special to The Financial

In

visited

fact, readers will be interested in

for

sells the

is

business

Remember that

time.

with offices at

the

into

a

the

of

Stanton

wide

good speculations.

property

turned

and take

My Interesting Discovery

Therefore,

a.m.

Municipal Bond Club outing and
Chicago members. Breakfast will
be served in the Marine Grill and
Cocktail Bar of Welty's Restau¬
rant. Ken Eaton, A. C. Allyn and

shopping center

a new

DENVER, Colo.—Intermountain
Securities, Inc. has been formed

out-of-town visitors attending

15 from 8:30 to 11

for,

^hastily.

:

A

Sept.

up

to the

Republican
money
and conservatives would rally > to
Humphrey's support; he believes he will have balanced the budget
by next July 1, an accomplishment for the first time in more than
30 years. It would be considerable of an accomplishment.
Naturally, organized labor would attack him as a big business
man.
But they are already making that campaign against the Ad¬
ministration.
And when you think of Walter Reuther. and Mc¬
Donald of the Steel Workers bragging about having attained the
attacks

the- downtown

do

-

timber. He would perhaps make a
better executive than Mr. Eisenhower. There is reason to believe
he

than

dential

is

ciety of New York in 1931.

is

area

in

Presi-

Military Academy, class of
In World War I,
he rose

President

too.

way

industrial

Vice

from Second Lieutenant to Major,
Field Artillery, 1917-1919. He wae

one

area

Corporation

elected

was

Stanton

S.

1915.

con¬

to this

probably going out that
An

Mr.

U.

best

being built.

are

South.

or

Harris,

dentt.

certainty in which
houses of your

a

direction the

When

merged into The Chase

Forbes

he

1931,

be

may

zoned
property.
Land
on
the
Besides, the stocks of
fringes of these Zones increases
.the latter are larger.
Therefore,
in price more
rapidly than "in¬
no> downtown
merchant
should

.

return to the Hanna Co.
But

But

high wage-scales of the

shopping-center stores, they
charge more for their mer¬

chandise

director.

a

was

Harris

city stores.

it is well known that his ambition

With that

and

new

because he is not permitted under law to own gov¬

Mr. Humphrey
and

jthe>; shopping-center.

must

*

*

the way to and

on

this is mot all. Owing to the high

enterprises of which he was Chairman of the Board. Secreof Defense Wilson was made to give up his interests in
General Motors but there is a difference about the Secretary of
ernment securities.

from

rents and

Co.

the Treasury

happening

are

of Harris, Forbes
& Co.,
joining that organization in
and,
subsequently,
being

first

elected

It

continuing

Mr.

ing in the famous old investment

can

Forecast

direction.

one

1934,

director

a

since 1940. He

Stanton ob¬
tained his early investment train¬

living in their
.when he asks a silly question. ~
~
V.yy..
But invest no money where the
"I answered that question 10 minutes ago,n he is likely to say *
two or more groups are mixed.
V Many people who are now driv¬
tartly, and* the erring member who would probably say to some
I forecast that the "best
buys"
-hapless witness that that was all very well but he wanted it4* ing some miles to reach a new
are at the
fringe of the different
answered again, will blush and keep his mouth shut.
shopping center may soon get
V. In connection with the "conflict of interest" ' statute under
tired of it.
Too many accidents Zoning Areas, where some resi¬
his place

director.

a

Forbes

•

due

Stanton

is

estate

The residential section of
every
city is growing fastest and best

of

In

M.

•

like

The

Boston

Corporation
and

Above

occur.

local newspaper, which
become a gold mine to you.
Safe

been

of

First

get

can

real

your

with my.vacaton.

member will want?

a

changes will

A

centers this

matter to watch him

dent

recom¬

you

what

has

Vice-Presi¬

all, read the reports of these hear¬
ings and the real estate news in

in

price

to'recom-

getting

ton

hearings
the
City

which

finally take,
idea

good

coun¬

since

these

a

mend.'

ask him a question
by way of ..saying he asked the great',
Humohrey a question or by way of identifying■ himself in the.
great man's conscience. : Humphrey is courteous so long as the
questions have merit but he is quite firm in putting a member in jy

tarv

tment

n ve s

try, Mr. Stan¬

newspapers

Aopeal Board Hearings on re¬
to
change
any
Zoning
Areas. Attend all hearings which
are
held by Appeal or
Planning
mendations.

which

to

of

the

and
known

entire

advertise¬

daily

your

quests

to

stocks

When he appears before committees of Congress

deal with the members.. Every

of

best

of

Stores

tremendous

his adult

way

Corporation,
the

degree, he dominates Eisenhower.
doubtful, indeed, if anyone has ever served in Washington with more ability than Humphrey.
He has a tremendous in¬
and

how

the

in

own

controlled" by
the
United

It is

tellect

ments

surer

"Dime Stores"

to whom he looks most up to than Secretary of
the Treasury Humphrey. The facts are that
Humphrey dominates
a

in

i

your

a

in

450 retail

Bargeron

or

his Cabinet and to

One

leading

ested
Carlisle

for

one

plans

area.

Watch

to
or

ex¬

know,

Gettysburg farm.

Cabinet

First

October.

family is
heavily inter¬

iollowed, that the President would be willing
his

is

go

Gold

so.

A

«■

easily understand that if he could
name
his successor, and he
would unques¬
tionably be able to do that insofar as the
Republican nomination is concerned, and that
the nominee would
be elected
and
thereby
gain approval of the policies Eisenhower has

In

me

plain
do

can

to retire to his

There

for

community.

increase.

an

to

need

hunt

money

make

Let

ex¬

of

not

to

He

has

he

reduction

do
and

Uranium.

commander

as

retired

The

bankers in the

man auaining the power that goes
Presidency willingly gave it up but

Eisenhower

reached
of

again.

has

of

as

retail business

Eisenhower, for the first time in my knowl¬
edge, is a man who doesn't particularly care
about

Stanton

Corporation, and, after a
vacation, will announce his future

Babson, in noting the growth of

Mr.

tnat

M.

Vice-President

as

new shopping
centers,
investments, and finds that
there is more opportunity in
investing in real estate adjacent
to business areas.
Advises studying city zoning
laws, and
cautions against buying real estate in a mixed industrial and

Eisenhower will

M.

Frank

Boston

points out objections to them
a

i

V.-P. of First Boston

Shopping Centers

By ROGER W. BABSON

By CARLISLE BARGERON
It is

Stanton Retires As

Money in Real Estate

Than in New

11

on

State

12

The Commercial and Financial Chronicle

(980)

theless, while the Act was de¬
signed to preserve the small busi¬
nessman
against unfair competi¬
tive practices in the market place,

Sherman Anti-Trust and RobinsonPatman Acts Not

I

ing, in

By JOEL B. DIRLAM*
Associate Professor of Economics

University of Connecticut

3

General BrownelPs Com¬

Prof. Dirlam contends that Attorney

Report

any

approval,

of

on

tainted

be

to

seems

no

of efficient competition.
serious economical quarrel with

of price

tion
this

In

on

Antitrust

e

to

propose

Chapter IV of the
Committee's Report on

comment

Brownell'
t h

I

statement

"Antitrust

Laws,

turers,

reference

Section

to

criminations

Re¬

reconciling

what

economic

that

with

Sherman

the
Act.

"c

Joel

between

the

points out—with

philoso¬

trends

recent

eral

Trade

it

statutes,

some

discerns

Commission

Fed¬

in

decisions.

In

adopting this position, the ma¬
jority of Browned Committee ap¬
pear to have misunderstood
the
foundations of both statutes.
Sherman

against

monopolizing,

The

bulwark
of trade and

Act, as
restraints

a

of

the

have

Amendment

serious

have

ignored
to

fallen

bargaining.

ers, that
the first

pression,

went unchecked
of

years

the

during

cannot be defended as
economies of. large-scale

had

attained

maximum

interest

the

of

con¬

suming public and the small busi¬
nessman's right to compete on the
basis of efficiency in serving that
public.1
According to Dr. Hans B. Thorelli's, exhaustive
history of the
early years of antitrust agitation,
legislation and policy, "the imme¬
diate benefiary legislators had in
mind"
in
passing the Sherman
Act of 1890 "was in all probabil¬

ity the small business proprietor
or tradesman whose opportunities
were to be safeguarded from those
recently

-

business

seemed

that

of

elements

evolving

so

strange,

gigantic, ruthless and awe-inspir¬
ing.
The Sherman Act is not to
be viewed exclusively as an ex¬
.

.

.

pression of economic policy . . .
(It) embodies what is to be char¬
acterized as an eminently 'social'
purpose." 2
originating

1936,

Act

Robinson-Patman

The

did

from

business, was

small

by

pressure

it

as

of

markedly dissimilar in origin

not

the

from

Act

Sherman

1890. 3

of

natural

before

the

discounts

virulence,
economists had pointed out that
they did not reduce distribution
costs. 5

More

Myron

W.

"these

important,
Watkins

transactions

credit

Dr.

as

has

tend

said,
dis¬

to

the

driving out competition
area by special deals;
even the Supreme Court's decision
in Standard Oil of Indiana did
in

statement

Trust

1 In

Law

Prof. Dir¬
Anti-

on

Monopoly of the Senate

on

Com¬
1955.

Judiciary,

book,

our

and

(1954)

by

Subcommittee

the

and

mittee

submitted

the

Fair

Economics

Professor

A.

Aug.

23,

The

Competition:

of

E.

Antitrust

Kahn

and

Policy

I

at¬

..." 6

The

Robinson-Patman

Act, according to this view, was
first and foremost a long-overdue
strengthening of Section 2 of the
Clayton Act, whose deficiencies
had been pointed out by econo¬
mists time and again.
The big
buyer has an advantage in any
case.
It is not illegal—and no one

that

By

R.

p.

B.

sive Politics

227.
Nye, Midwestern

(1951),

pp.

28-69.




impeccable begs

ques¬

many

be

have

and

the

the

of

the

ell

Report

that

lies

in

its

maximization

efficiency
must be the sole guide to anti¬
trust policy. A major goal of anti¬
trust policy is to protect the con¬
sumer
by preserving competition
and promoting efficiency.
But it
is clear that an ancillary if not
equally important purpose is to
process

itself.

As

a

protection against unfairness and
the exploration of superiority in

bargaining

power, the RobinsonPatman Act is as much a part of

the

democratic

tradition

as

Interstate Commerce Act of
the

Wagner Act of 1935. Never¬
Rep. No. 2287, pt. I, 74th Cong.,

Sess.
5 See

from

(1936),

E.

the

P.

p.

79.

3-4.

Continued

Learned, "Quantity Buying
Point of View," 8 Har¬
Review 57, p. 65

Regulation
in

Business

(1929).

of
Competitive
Enterprise (1940),

is

con-

on

24

page

Report, Note 58, p. 143.
of California, Report, p. 141.
International Salt, Report, p. 140, and

8 Standard

73,

73,

10 The

parently
text

Yellow Cab, Report, note

147;

p.

147.

p.

to

which,

Brownell

apply

Section

by

Committee

an

3

"actual

would

ap¬

(Report,
would force

p.

148)
in¬

an

competion of

on

the

policies pursued
ment which

by the manage¬

Harvard

invited

have

Professor

tack.

an

teria

of
California
doctrine
by
a
"construing equivalent textual cri¬
of illegality of Section 7." Note 51,

142.

p.

In

Review"

ness

showing
process"
titors'

2

of

injury

rather

sales

it

cases,

to

than

and

would require a
"the competitive

individual

comoe-

profits

(Report, p. 165)
meeting of competi-f
ticn, regardless of any tendency to en¬
hance monopoly, an absolute defense to
the charge
of violation of the Clayton
Act (Report, pp. 184-185).
11 Report, pp. 206-208. The Report fails
and

to

it

would

make

lights

lists

that

of

function

it

is

When

only
the

as

cost

would

same

firm

the

justifies

saving

cost

to

The

should

per¬

the

of

the

at

to

po¬

retail.

prospec¬

—not

(2)

major

market

part of

was

to

Management

and

cultivate

the

loyalty

regard

or

the

of

owners

circles

Investment

(4)

had

formed the belief that the present

do

would

management

little

or

nothing on their own initiative to
remedy the situation. The word
had gotten around that the man¬
agement was vulnerable.

exists

is

of

it

endowed perhaps

their

exercise

to

all

or

any

tions

someone

suffrage?

a

proxy

the

ing

management

present

20th

ways

gents deserve better epithets
of

that

or

financial

of

breed

pi¬

rates."

the

In

of

course

Proper Term

a

recent proxy

the word
dictionary and
found that Webster defined it as
I

looked

battalion specially

"a member of a

for

trained

up

the

in

close-range

fighting."

Perhaps the term, then, is not
too bad a description after all. For
is certain: In a major
affair you do need a bat¬

thing

one

proxy

talion of lawyers,

analysts,

search

accountants, re¬
public relations

publicists, printing special¬
I.B.M.
machine
operators,

men,

ists,

solicitors, clerical aids and

proxy

—towards the end—doctors.

curred

would

the

that

me

today it oc¬
perhaps

the

thing I could
mention some of

constructive

most
do

to

be to

with

of a major proxy
emphasis
on
the

lawyer's role.

It should be under¬

highlights

contest

stood

that the points I make

will

vantage point of one
represented the dissident or

be from
who

the

insurgent group.

about

♦An

your

adversaries.

address by Mr.

American
Aue.

23.

Bar
1955.

thorough analy¬

a

State

law

under which

corporation

has

been

shareholders'

obtain

to
to

organ¬

For

Stephan before the
Chicago, 111.,

Association,

lists

and

inspect the corporation's books

and

records, the duties of inspec¬
election, and the remedies

tors of

available
annual

shareholders

to

if

meeting should not be

ducted

arid

fairly

in

thecon¬

accordance

One other subject gov¬

erned

State

by

increasing
for

law

interest

which

is:

is

Who

of

pays

contests?
This ques¬
along the line
put to you and' it is a

proxy

tion

somewhere

may

be

matter not

entirely divorced from

the interests of the

After

this

The

lawyer.

period

for

study and

has

arrived

act.

overt

Demand

of

time

the

for the first

the

Stockholder

List

The first contact

makes

group
ment is

the

the

with

opposition

the

manage¬

usually to demand

an

of the shareholder

in¬

list—

indispensable
item
in
any
contest. The record hold¬

proxy

besides

being the basis for
solicitation, also deter¬
mines where the major effort is to
personal
be

expended, what medium is to

be

used

reach

to

the

of

mass

shareholders, whether such things
as

regional meetings of sharehold¬

ers

desirable,

are

shareholders
sonal

what

should

large

receive

per¬

visits, etc.

Illinois law, which is 'not un¬
typical, gives any shareholder the
right to inspect the shareholder
list

make

to

and

from if he has
and has

been

extracts

there¬

"proper purpose"

a

a

shareholder for at

least six months. But having the
right and getting the list are two
quite different things. It does not
take

much

self-persuasion

management
that anyone

to

convince

for
itself

who wishes to unseat

it ipso facto has an improper pur¬
pose.

petition

A

for

a

writ

of

mandamus may therefore be chal¬

lenged and
become

a

trial will thereupon
Under Illinois

necessary.

law if the shareholder is
ful

in

the

agement

The first task is to learn all you
can

business

"public directors,"

or

Next follows
sis of the

ings,
a

"Raiding" May Be

contest

their

on

of

group

etc.

than spection

"milkers"

"raiders,"

"modern

officer

hand-picked nominees of the

are

management

to

and enter the
Century, perhaps the insur¬
its

correct

emphasis

orientation

contest thus launched
results in displacing an existing
management with one with more
vigor and imagination or in caus¬
If

the

and

bio¬

board

with law.

these condi¬
surprising that
with a
strain of opportunism emits a war
cry and'launches a proxy fight?
And
is
it
surprising that the
shareholders, that rather inarticu¬
late and somnolent group, decide
If

directors

short

a

the

tice, quorum provisions, the right

business.

the

of

is
of

to

provisions relating to the conduct
of
shareholders'
meetings,
the
right to vote, record dates, no¬

relations

to

with
as

ized with special emphasis on the

little

done

had

filled

indiffer¬

was

stockholder

to

ent

also

the

speak.

(3)

Desirable

promise,

that lacked

which had fallen behind the times,
so

be

terms of experience, the stockholder inter¬
resulting ests they represent, whether they

low

and

will

air

graphical sketch
with

The corporation

industry

an

the

soon

how it has been conducted.

bond

and

lower

may

court

post

the

success¬

the

man¬

supersedes

a

automatically stay the

issuance of the writ.

the

integrated firm
though the

even

and

charges and countercharges

follows:

as

dividends

low

the
level

statements

re¬

a

price for the corporation's shares.

excuse

Committee's

discounts

discounts,

sold

functional

savings

nermit

half

functional

that

different

a

wholesaling

not

the recipient competes with

at

these

the

discrimination.

sition

is

it

formance
seller.

the

(1) Low earnings in
invested
capital with

make

clear

to

the

of

of the recent rash of proxy

causes

In the time allotted

Section

tration

cent article in the "Harvard Busi¬

Standard
court

the at¬

Williams

Business School in

exclusive

dealing
contract,
even
when
imposed by a dominant seller—since the
Report commends the rejection of the

its an¬
shareholders, its
proxy statements and periodic re¬
ports to the SEC; its latest regis¬
corporation,

ufacturing and distribution setup
in great detail but to give
one a feel of the business because

foreclosure"

cases

inference,

quiry into the impact

someone

Seller's

Business

Practices

pp.

of the

the

there have been
corporation or

in

pri¬

explore

to

legacy

discount:

4 H.R.

vard

the

1887,

reports

bad things for
On that issue

or

battles

proxy

conditions

"raider"

assumption

of

Brownell

the

failed

law)

economic

note

of the Brown¬

needed, and
(quite under¬

concerned

was

ad

marily with the need for revision

concessions.

error

is

since

Committee

9

The second

elaborated

been

Report

standably,

him

obtain

on

What

nauseam.

what

for

to

possible
im¬
implicit in the
of the decisions can

Speculations
plications lying

7

6 Public

Progres¬

so

are

setting a cost limitation, the
simply made it more difficult

2d

(1955)

view

Committee's

long as wholesaler-retailer
buys as a wholesaler his discounts

Act

My statement is, to a large ex¬
tent, an abbreviation of our book.
2H. B. Thorelli, The Federal Antitrust
Policy: Origination of American Tradi¬
3 See

Certainly,

Brownell

the

has yet proposed making, it so—to
fail to give him a special discount.

or

tion

by the case.

presented

phraseology

tempted to explore in some detail the
validity of the position adopted by the
Brownell Committee in Chapter IV of its

Report.

dilemmas

in.

competitive

before

the

of

all

resolve

tions.14

tices of grocery
*A

selected

a

not

protect the virtues inherent in the

lam

almost

with

the

tactics in
•

competitive system in
the eyes of n large body of busi¬
ness men directly
engaged there¬

Investigations of the buying prac¬

and drug chains,

no prima facie
against a dis¬

seller
of

two-thirds

Great De¬

Even

the

action

for

cause

Foods

General

the

pectin market,
whose
officials
complimented
themselves on the success of their

arbitrary

both

in

decision could find

powerful buy¬

of

for

mission

criminating

of

granting

petition that would be at the same
time fair and free; its concern was

its
power
unscrupulously
against both distributors and sup
pliers; the Federal Trade Com¬

"advertising allowances," and free

production.

sought to preserve com¬

dominant seller us¬

a

deals—in

favor

of

nual

tuses—its catalogues and its man¬

ing

Arbitrary

tices.

It

regards with approval

exculpated

brokerage,

intended
to
protect the process of competition
against unfair and vicious prac¬
was

decisions

equally vulnerable to criti¬
the Supreme Court in the
Automatic Canteen case in effect

efficiency rather tnan 011
of 4everdge and mo-*

discriminations—false

hand,
that the

other

the

cism:

the exercise

nopolistic

laws

are

they
the desire of Con¬

assure,

on

to

great majority of the more recent

ab¬

not tailored

were

On

the

of

Committee

through the
Robinson-Patman Act, that suc¬
cess in the competitive
struggle be
based

have

to

time

a

facts.

some

First,

error.

the

to

be

into

gress

for

its orders often

correct,
then
the
Brovynell Report and other critics

and it
slight ex¬
aggeration—that the Supreme
Court has flirted with the theory
of conflict.
Presumably the Re¬
port is persuaded to refrain from
recommending repeal only by the

phies of the two

Commission did

demns: the Trade

reading of the RobinsonAct
and
SJherman Act

Patman
purpose

underlying

the cases

to

features

that the Brownell Committee con¬

appear

Dirlam

B.

llisions"

o

jectionable

dicated its economic functions, and

If this

finds

It

they

cases,

Undeniably, there are many ob¬

regarded,
as
unfair

power.

of

Indiana

of

or

(1) that a concession was
necessary to meet competition, or
(2) that there was no injury to
competition even though compet¬
itors were injured. 19

arising from inequalities
opportunity
and
bargaining

of

Act

Patman

regards,

Minneapolis-Honeywell

ination:

squeezes

Robinson-

in

supposed to have wiped out
possible defenses for discrim¬

two

to eliminate

community

still

and

the

of

theory
the

the

the

Morton

Canteen,

Automatic

Standard

supported
by
differences," it

Amendment

Patman

the

as

have had to

we

only comment is that in the

are

of the Robinson-

the purpose

was

in

not

economic

"sound

port speaks of
difficulties

merchants, manufac¬
other
businessmen

The
old Clayton Act having proved in¬
effectual in suppressing these dis¬

Clay-

The

and

ones

good

are

the lawyer this means an inten¬
sive study of the charter and by¬

my

are

decisions

Commission

Salt,

( was) seriously imperiled." 4

and

2

3 of the

Act.

dependent

special

date

to

corporate life.

the

ercion, and that the "survival of in¬

with

ade¬

an

Opinions

come.

whether the

time

apparently

our

Trade

through ruthless co¬

been obtained

apply

to

Covers the legal problems
and the validity of proxies.

some

are

for

us

sees

proxy

differ

contests

with

be

a

statements.

petition.9
Still other cases
objectionable
because,
like

millions of dollars in discounts had

Policy in Distrib u t io n,"

lailure

Proxy
to

rules and

proxy

the constitutional problem regarding

as

of proxy inspection

anti¬

the Supreme

or

well

as

SEC

on

Discusses what constitutes

quate standard of injury to com¬

allowed

by
disclosed that

had

manufacturers

C.'s

solicitation,

false and misleading

are

apparently lay

error

T.

F.

Comments

contests.

need of their amendment.

line

under Section
Act, "perplex¬

or,

such

in

heresy

reasonable

a

battles, reviews the procedures and problems involved

proxy

Others,
Act

Contests

STEPIIAN*

Chicago corporation attorney, in calling attention to recent

for

in

A.

Attorneys-at-Law, Chicago, 111.

com¬

original

Clayton

The

the

Court's

concessions

the

and

the

of

in

competition.

to

policy"7

ing."8

misused, could the Robinson-Patman Act result in a diminu¬

the

Robinson-Patman

"offensive

3

being

as

doctrine.

with

the

trust

Act, and, only when consistently

Section 3 of the Clayton

unfavorable

or

correct

of

Robinson-Palman Act the hampering

selected

EDMUND

Mayer, Friedlich, Spiess, Tierney, Brown & Piatt

that

noted

be
are

regarded

ment,

make success in competition
efficiency alone, and (2) it erroneously ascribes to the

By

at least, bare of either

or

favorable

ignores the desire of Congress to

Holds there

should

it

decisions

certain

on

Some Legal and Other
Problems in Proxy

in the Brownell

discussed

cases

Report,

Anti-Trust Policy, which claimed there were
conflicting philosophies in the Sherman Anti-Trust and the
Rcbinson-Patman Acts, has such serious errors, as: (1) it
mittee

believe it

do not

has, by so do¬
significant or demon¬
strable fashion hampered efficient
competition.
Commenting specifically on the
Robinson-Patman Act and Sectiqn

Conilicting

Thursday, September 8, 1955

^.

.

By the time

Appellate Court has acted

is not

unusual for the

it

sharehold-

Volume

ers'

182

Number

meeting

to

5462

have

The Commercial and Financial Chronicle

...

adviser who must keep his client
within bounds in proxy solicita¬

about the

pleased that Mr. Armstrong is on

tion

some

this panel, and I am sure he will

crime

comments about the Commission's

and

come

role

gone.
In

New

lower

York

the

stay of the
judgment is discre¬
with the Appellate Di¬

court

tionary
vision.

In

course

was

courts

and

the

Ward

contest

list

quickly:

was

have

Securities

and

has

am

on

proxy

approach the topic

solicitation

the

from

corporate

the

an

so

that he will not commit

bring down
injunction suit by
or

mission such
seen

as

we

on

a

can

have

a

the

Com¬

have recently

contest and
shattering effect

anyone's chances for victory.
Although my firm did not have

on

legal

I

himself

in another proxy

which

cedures

have

to

have

1 Mr.

Exchange

Rule

X-14A-7

his
of

provides that the manage¬
mail proxy material
furnished by a shareholder (at
the shareholder's
expense) with

Armstrong is SEC Chairman and

remarks

should

perhaps

considerable

the Commission in

functions
must be

was

my

such

must deal with

SEC, I did

Sept. 1.

material
see

through

the

enough of the

pro¬

that

state

sympathy

must

tions that

are

personal
in

the

resist
a

view

Ward

I

It
is

con¬

pressures,

it

myriad of situa¬

difficult to

must

the

add

see

that the

shareholders

full and fair disclosure of

a

facts.

But

for

contests.

-

it

having said this, I must also

that

today it is almost im¬
possible to advise a client in many
situations whether he is

violating the
I might add,
tions.
pers

I

see

encom¬

Continued

on

promptness after it is
received from the shareholder ex¬
that

the

mailed

on

which

behalf
is

need

not

prior to the first day
solicitation

of

the

not

a

material

is made

altogether

on

This

management.

satisfactory

rule.

(1) It permits the management
to

what is in the insurgent's
solicitation and enables it to take
steps to neutralize it at once.
;
(2) The timing on the mailing
see

is

under

the

agement.

control

It

delay suits its
(3) There
incongruous
to

your

of

hold

can

the

r '
.

■'

-V"

man¬

things

if

up

purposes.

is

something
turning

opponents

for

bit

a

about

over

safe

han¬

dling the very material that you
hope to unseat them with. It just
doesn't conduce to restful
sleep.
Something
should
be
done
therefore to give the shareholder
an
effective right of inspection
and

perhaps the best hope in this

direction lies in

an

expanded rule

by the Commission.

Once

_

get the shareholders'

you

list there is the

awesome

problem

of

keeping it current since mail¬
ings are continuously being made
to

shareholders

begins.
side

solicitation

once

In the Ward contest each

must

have

made

at

least

eight mailings to aporoximately
67,000 shareholders. The problem
of

keeping

the

list

to date,
day-to-day

up

keeping track of the
changes

in

>

ownership

purchases and sales

through
solved by

was

agreement of counsel—as

-other

problems

rather

many

in

this

One

re-

met

were

unusual

so

affair.

•

assuring
sion

thing about

is that

-ment

no

profes¬

our

matter

how

vehe-

clients get most lawyers

our

have the ability to rise above the
heat of the conflict and
do the

.thing that
the

.

interest

the list.

The

play

and

dictates.

transfer

So

sheets

made available to the oppo¬

.were

sition
10

fair

reason,

public

with

.

at

periods

of

tv/o

weeks.

The

group

days

to

position

therefore

.shareholders'

list

kept

with

about

its

the

op¬

own

aid

(intricate I.B.M. machines and

- -

of
ex¬

pert clerical help.
This

•

:

left

ord

procedure,

the

tain

turned

with

cer¬

The

advantage.
entitled

rec¬

meeting

was

of
at

Monday, March
to

agreed
soon

as

as

completely prepared, which

was

turned out to be two

after

vote

to

14.
The management
deliver the record list

it

out,

a

date for the determination

stockholders
the

it

management

tactical

the

-agement,
access

record

three days

or

date.

however,

The

with

man-

first

its

to the transfer sheets had

a

.substantially complete list by the
previous Friday night. That night
it

mailed

out

statement

and

its

definitive proxy

requesting

return

of

the

execution

management

This

priority
many observers felt,
proxy.

in

mailing,

was

an

im¬

portant

advantage to the incum¬
bents. Many shareholders sign the

The gargantuan,

first

last year

they

proxy

get

and

forget
about the matter from that point
on.

A

Commission

rule

that

are

ever-growing thirst of the military jet planes was slaked

by 124,000,000 gallons of Cities Service jet fuels. Cities Service refineries

geared to provide increasing quantities of vital defense materiel.

mail¬

ings of the definitive proxy state¬
ment by the contestants shall be
simultaneous
in

would

be

desirable

CITIES

opinion provided, of course,
that the failure of either
group to
cure
deficiencies in its statement
mv

should
of

the

not

hold

opposing

up

the

Number 13 of

bring

me

to

a

few




brief

a

series

'

SERVICE

Company

mailing

proxy.

The SEC's Role in Proxy Contests
This

@

A Growth

J *'

is not

that the Commission is pro-

reasonable

cept

or

rules—which,
carry criminal sanc¬
by this morning's pa¬
proxy

shall

be

13

in rule making, and above all

pass

have

discharging its

proxy

of

proxy

doubts

scrupulously fair to each

side—and
that

in

test—it

appeared in the "Chronicle"

serious

adequacy and clarity of

of the Commission's rules.

primary charge of the processing

which
ment

I

constructive to
subject.1 I shall not
his subject matter, but

viewpoint of

SEC Rules

Commission

the

I should like to
of

contests.

proxy

something

on

intrude

obtained by agreement of counsel.

The

in

say

re¬

had to the New York
the

(981)

page

20

14

The
Commercial and Financial Chronicle

»:

j

(982)

ing that the stockholders ..of- the

holders

Little

and

Falls

National

will

Bank

receive approximately $90 a
for their holdings.

News About Banks

share

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

sale

*

*

of

:'V'-

stock

new

the

to

of $50,000, has brought
capital of the First National
Bank in Indiana, Pa., up to $350,000 from $300,000.
The enlarged

the

capital became effective Aug. 25.
Board

Directors

the

Vice-President

merger

this

First

with
year,

additional

title

National

given

was

of

an

since

the

Assistant

to

New

York

held

of

Sept. 6 Grant Keehn,

on

earlier

The

of

First

Executive
the

the

of

City Bank of New York

National

held

meeting

New

of

since

employ

the

meeting,

Frank

D.

had

the

of

been

in

for

company

the past 20 years. He was a mem¬
ber of the Bond Club and Bankers

Club

both

of

American

New

Terry

Approval
State

certificate

capital

by

in

increase

of

York
of a

New

the

of

the

Hempstead

the

Hempstead,

N.

Y.,

$800,000, in 80,000 shares,

from

$10
per share, to $1,000,000, consist¬
ing of 100,000 shares, par $10
each, was announced on Aug. 30.
%

Eugene
of

President

Donovan,

Auburn

the

Trust

Trust

Company

York
Keehn

Frank

appointed

charge

Company of

Domestic

the

Services

Keehn

to

the

Mr.

Executive Vice-Presi¬

First

has been

"Special

Prior

institutions,

the

of
was

dent of

Division's

Group."

merger

National.

Mr.

Terry

Assistant Vice-Presi¬

an

since

dent

Vice-President in

he

the

to

came

Bank

made

Central

of

according

ment

D. Terry

of the newly-formed Fi¬
Companies Department in

nance

to

an

New

announce¬

Harry W.

by

Chairman of the Board

Davies,

Sept. 1.
The Auburn Trust Company re¬
cently became the twelfth Marine

National

/Second

berland,

Md.,

Aug.

when

24,

stock

Bank

effective

became
as

result of

a

of

dividend

Cum¬

of

a

the

$100,000,

capital became $500,000, enlarged
from $400,000.
,

pany

with

Trust

Company

Marine

York.

At that time,

Midland

Central

of

As

of

the

Aug. 20 consolidation of
Banking Co. of Or¬

Orwell

well, Ohio, with
was

Farmers

National

Co. of

New

with

effected
Bank

solidation
charter

title

of

con¬

under the

effected

Bank

com¬

The

$382,500.

was

and

Farmers

the

Trust

&

Co.,

stock

of

reported a capital
$700,000, in 35,000 shares

of

divided

par $20 each;
$700,000;
and
un¬
profits and reserves of

not

than

stock,

common

less

*

65c

or

clared

The

First

New
of

Sept. 6 and will be paid
1, 1955 to shareholders of

on

Nov.

on

aggregating $6,500,per
share were de¬

National

York

of

business

City

record

Oct.

7,

Bank

of

the close

at

1955.

Of

this

amount

$6,000,000 or 60c per share
by the Bank and the
remainder by City Bank Farmers
will

be paid

Trust

Company.

This

dividend

it is stated represents an

of

5c

share

per

share

increase

the

over

60c

previously paid each

ter, and raises the
from $2.40 to $2.60.

per

quar¬

annual

rate

*

Trust

Company

Ohio, with

common

500,

The

and

Company,

Banking

Orwell, Ohio,) with
of
$50,000 were
effective
Aug.
20

of

stock

common

consolidated
under

stock of $382,-

Orwell

the

charter

title

and

of

"The Farmers

Trust Co. At the effective date of

The

of

of

-f

proposed

Bank

Vice-

at

the

of

merger

Clarence

Clarence,

Erie County, N. Y., into the Manu¬

facturers

Traders

&

of Buffalo,

pany

Trust

N.. Y.,

National

Bank

and

Banking

Department.
has

company

thorization

also

(Aug.

The

trust

29)

$6,730,000,

these
it

columns
&

that

Traders

786,

page

the

Manufac¬

Trust

Co.

had

received approval from the Bank¬

Shareholders of Chemical Corn
l/ank,

Exchange
a

of

special meeting

proved

10%

a

pioposed
Directors.
of

the

($10
the

by

than

4,294,000

meeting,

ap¬
as

Board

more

value)

at

dividend

the

With

York

Sept. 7

on

stock

bank's

par

New

of

75%

ized

to

tional

Traders

take

Bank

Manu¬

First

Buffalo.

of
*

transfer

Sept. 30 of $5,000,000

on

from

undivided profits, crediting
$4,2.94,000 to capital and $706,000
surplus. As a result, Chemical
Corn Exchange Bank will
then

to

have

capital

of

$47,234,000,

$150,000

new

capital stock

of the First National Bank of Yar¬

Harold H.

Helm, President, an¬
nounced that the 10% stock divi¬
dend will be

distributed

30 at the rate of
10 shares held

Where

one

on

share

of record

fractional

Sept.

on

each

will

equivalent in

cash,

receive
on

a

result

of

the

is announced
to the bank's
of

50 cents

benefit

stock

will
Oct.

cash

on
as

it

entitled

dividend

share, but they will
from
subsequent
divi¬
a

dends.
•t

As

a

result

%

of

heart

attack,

the death of Edward Scott Peterton

occurred

Leonia,

N.

J.

Peterson, who
Was

at
on

his

home

Sept.

4.

at

Mr.

48 years of age
Vice-President and Treasurer
was




to

en¬

given

were

in

The

#

in

the

capital

National

*

*

of

merger

National

amount

of

National

can

Miami,

Fla,

bank's

the

to

$75,000 by the Ameri¬
Bank

of

North

has

enlarged
the
to $425,000 from
increased
capital

capital

Trust

&

under

Bank

Co.

the

curred

the

of

Windham

Willimantic,

of

title

Hartford,
of

the

Conn.,

latter

oc¬

Aug. 22, according
weekly advices Aug. 27
on

Board

of

Governors

*

by

the

Little

to

*

of

of

on

the
of

Falls, N. J. of the proposal
Bank

the
&

Paterson, N.

bank
Trust

J.

the

became effective

office of the

with

the

Company
consolida¬

on

Sept. 2.

County Bank & Trust

Co. President of the latter C. Ken¬

Fuller

is

advices

si:

the

$26

Bank

been

the

"Newark

Evening News" of Aug. 31

as

stat¬

of

as

AugA'!r**

of

the

of

the

date

authorized

bank's

shares;

is

state, that
2,900,000 shares of

but

unissued

stock

issuance in

First

by

it

advices

for

Western

be

connec¬

acquisi¬
ot,her

of

banks.

Under

the

the

charter and

Citizens

Savings
with

National

Bank

of

title

of

Trust

Riverside,

stock

common

divided

&

Cal.

of

$3,776,000
the Yucaipa Valley National Bank
of
Yucaipa,
Cal.
with
common

capital

bank

profits

$2,109,500.

reported

was

less than
with refer¬
consolidation
issue of July 28,
not

of

An

item

to the proposed

in

appeared

our

383.

page

%

au¬

2,100,000

tion with the purchase or
tion

to

the

$3,864,000 in 241,500 shares of
common stock, par value $16 each;
surplus
of
$3,864,000,
and un¬

incorpora¬

from

Cites Areas of

?:

%

John J. Rutledge has

pointed

been

Assistant

an

Manager

the

at

ap¬

General

head

of

office

The Canadian Bank of Commerce

in

Toronto!, it

Aug. 29.

announced

was

bank in

1923 and has been closely

associated

with

its

foreign

since that time.

ness

on

Mr. Rutledge joined the

busi¬

His

experi¬
ence includes six years spent in
the London, England, office and
he
has
served
successively as

Manager of the Foreign Exchange
Department, Toronto Branch, and
Assistant
office

Supervisor of the head

Foreign

Department.

Danger in Present Prosperity :

September issue of First National City Bank "Monthly Letter"
points to heavy increases in home mortgage and instalment
debt, and

optimism running to

sees

The current issue of the "Month-

ly

Letter"

of

the

First

National

City Bank of New York contains
a

discussion of present credit con-

ditions

the

and

taken

by

Banks

and

Board in

the

Federal

the

situation,

of

ovpr-

million

to

Valley

Alhambra,

board

Coats,

Chairman

30.

of

atten-

danger"

in

our

in the follow-

ing paragraphs:
"One

most

significant
has

summer

widening

recognition of
prosperity—as al¬
inevitably it will under easy

a,
fact

most

that

conditions—has

money

tended

directors,
of

has

by the

upon

T.

First

P.

His

announced

The

government

people how they shall spend
their own money. But the Federal

statement

Les

Aug.

followed

we

ity—limit the

of

of

by
the

that

the

President

National

Bank,

board

had

voted

to

ommend

merging the bank into
Western, and that a share¬

holders'

meeting

proposal

mediately.
is

to

consider

the

be

would

called

im¬

When

the

consummated
Bank

First

the

with

fices will become

an

Western's

consolida¬

its

Valley

four

of¬

integral part
statewide

for

Since

ence

loss

of

then,

in

concern

stock

of

bal-

debit

of

the

New

nearly

rose

under

other

the

influ-

of inrequirements

the debit bal-

have

flattened

out.

have been
fluctuating below their best levels
of the year, reached during July,
price

"The
creases

debt,

averages

to

enough

stream

these

supply

.

the

is

na¬

big

not

other

or

situation is exemplified by the
growing practice among such institutions

of

'warehousing'

with

gages

mort¬

in

who

banks

turn

must rely on

the Federal Reserve
supplements
to
their
loan

for

funds.

"The
among
curve

some

Administration,, disturbed

other things by the rising
of building costs, has taken

appropriate actions with re-

istration announced that, effective

immediately,

ma-

to 25 years. At the same time the
Administration a b o 1ished, with some exceptions, no
down payment loans and the FHA
increased its minimum down payments from 5 to 7% on the first
$9,000 and from 25 to 27% on the
Veterans

excess.

"Housing

Administrator

Albert

Cole, in a speech on Aug. 9, stated
that the purpose was to ease up
0n

the accelerator, not push down

0n

the brake; to forestall a credit

expansion

bring

would

which

higher home prices and lower the

Mr. Cole pointed cut, these meas-

table

ures were

billion rise in home
debt represents a 9%
increase simply for six months of
1955; it suggests an expansion for
$6.9

by

of $13 or $14 billion, far
$9.6

billion,

al-

in line with the actions
the Federal Reserve

Banks in raisin§ discount rates,
"Equally, the unchecked expan-

mortgage

1954's

maximum

the

turity of insured home mortgages
would be reduced from 30 years

taken

of

overlooked,

savings

in-

over-committed

instalment

and

areas

shows
"The

the

too

of

value of the dollar by increasing
the cost of living generally.
As

in the

accompanying

the

as

is

going

hazard

of

really phenomenal inhave been

mortgage

home

to

things

margin

figures

Stock

ahead

without

spring

ascent

discount rates,

and

the year

retained

the

Exchange

among

will

be

money,

$1 billion in the year ended April
30.

solvency
borrower

been

the

ministration and Veterans Admin-

borrowed

members

York Stock

just
if

untenable.

July 30 the Federal Housing Ad-

Customer

of

ances

have

that

suspicions

on

of increase in

the

control

prices aided by increased margin
purchases.

Public

of their credit

thus

money."

ance

rec¬

they

Federal Reserve actions penetrate
all of the markets for credit and

felt

based

Even

tional

con-

reached

spect to government programs. On

use

and

spending

«We

debt

months.

has been aroused by these

the rate

fast.

six

to preserve stabil-

are

facilities

an

Alhambra

in

Allen,

First

must if

the

concern

cannot

tell

West¬

on

to

speed off into wage and price in¬
flation.

The rise in

instalment

in

fields.

demands for borrowed funds. The

the

of

creases

board,

announcement

by

Calif.,

favorably acted

bank's

ern's

with
National

merge

the

on

some

record.

a

sumer

Reserve

In commenting
the article calls

"areas

to

Reserve

Federal

present prosperity

ready
11%

in

excess

actions. figures,

restraint of credit

expansion.
tion

recent

"Last winter and

sion in instalment credit, in some
cases

terms so easy as to earn

on

the label, 'crazy credit,' has caused
concern.
The Comptroller of the

seniority.

The
Valley
National
operates two offices in Alhambra,
in

one

Arcadia

Beach.

and

growth,

a

30,
30

this

$26,133,000

it

is

Deposits

year.

on

The

June

on

of

the

are reported to
$800,000,000.

ex¬

resources

First Western
cess

June

said to have approximated

are

$24,600,000.
of

,.

a

special

Francisco

on

meeting

Sept.

2

(In

SELECTED

billions

the

in

of

AREAS;

1953-55

dollars)

June

30,

Changes-

—1

r>">

Home mortgage

1st half. 1955

19M

1 953

$82.8

debt__

+$6.9

+$9.6
+ 0.8

+ $7.6

0.5

0.7

2.4

26.9

cial and industrial loans*

+

1.9
0.7

+

0.3

+

1.1

+

0.3

+

0.7

+

0.3

2.8

tural loans

company

some

double counting

borrowings from banks
sales

share¬

one-third

of

finance

the

rise

in

of

are

eompan*

the

—

agricul¬

Customers' debit balances, NYSE

Increased

3.5

+

commer¬

Fed. Res. member bank

San

+

24.9

Consumer instalment debt

Fed. Res. member bank

*Involves

At

*■

IN

noted

resources

stated, rising from $664,154 at the
end of 1946 to

EXPANSION

Long

The bank has had

postwar

DEBT
,

in

one

reported in Pater¬
to

the

additional

was

First Western

Company of San

Calif.,

of

Aug.

on

:Ji

the

of

Trust

and

National

The bank becomes the Little Falls

son

offer

to

Aug.

of

Bank

the

5,000,000

provided,
the

of

consolidation

ence

amendment

an

stock

to

banking system, and its personnel

National

consolidate

neth

The

of
the

*

stockholders

Falls

County
tion

*

of

Following the approval

Little

having become effective

tion

Federal Reserve System.

30

the

latter's

Conn., with the Connecticut Bank

ap¬

V

Reserve authorities can—and

stock

new

Valley

*

Details of the merger were noted
in our issue of Aug. 11, page 578.

#

a

capital
H:

the

dividend

not be
1

the

the

closing bid price for the stock
Sept. 26. The new shares issued

from

issue of Aug. 11, page 578.

our

t^e

based

Details of the plans

large

the

volved, instead of receiving scrip,
shareholders

stock.

in¬

are

increased

$100,000 became effective Aug. 24.

Sept. 15.

shares

Mass.,

sur¬

plus of $127,766,000 and undivided
profits in excess of $19.5 million.

*

of

Francisco,

The

of

n's stockholders

e r

increasing

thorized

brought

Minneapolis from $300,-

sale

Bank

The increased capital was brought
about by a stock dividend of
$25,000 and the sale of $25,000 of new

the

$120,000,

Minnehaha

sH

*

next

authorize

24,

to $420,000.

The

Na¬

mouth,

will

of

author¬

was

the

over

tion

shares

the

of

26.

time the

same

&

authorized the issuance of 429,000
new shares. The
Directors, at their

meeting

000

First

000; at the
facturers

W est

developments of the

has

increase

an

the

$350,000,

at

shareholders

of

•

about

Department to
enlarge its
capital from $6,020,000 to $6,695,-

shares

represented

the

ing

♦

Aug.

share. In

per

Aug. 25,

noted

was

turers

$5

par

assets

bank's articles

been

dividend

effective

Bank

Department to increase
capital stock from $6,695,000

its
to

stock

the

Banking

value

par

$100,000.

#

A

of

from

stock,

not less than

au¬

received

consolidated

$20 each; surplus of $700,000; and
undivided profits and reserves of

been

authorized by the New York State

the

common

Com¬

has

has

approved

the

Ashtabula,

of

Senior

*

First

%

bank reported a capital stock of
$700,000 divided into 35,000 shares

t\:

Dorris

proximately $3,800,000;

The Farmers National Bank and

plans for the merger were noted
in our issue of Aug. 25, page 786.

*

in

bank

$100,000.

*

Mr. Donovan

a

the

Valley State Bank, it is
have already ap¬
the
consolidation.
The

of

surplus

consolidation

Dividends

effective

the

At

consolidation

President of the merged bank. The

000

12.

merged

was

institution

which at the effective date of the

the merger.

become

of

the

will

also

Shareholders

announced,
proved

Trust

&

Ashtabula, Ohio, with

stock of

mon

stock of

common

$50,000,

on

Midland
bank.
Present
plans,
subject to approval by the regula¬
tory banking authorities, are to
merge
the Auburn Trust Com¬

the

capital of the

from First National at the time of

*

of-

$50,000

Riverside

as

also

National

*•

*

C.

par

Auburn, N. Y., has been elected a.
director of the Marine Midland

Grant

Butte

stock of

consolidated

Butte

available

Department

stock

of

Bank

was

the

an

Jfi

An increase in the

#

%

Banking

the

Association.

Bankers
*

and

York

jf;

had

he

post

He

of

a

1951.

Co.

Trust

York

City,

the Chairman of the Board. At the
same

agreement
whereby
Valley
State
Bank

amount

CAPITALIZATIONS

regular

Bank

Western.

#

The

NEW

the

Western

Company approved

Dorris,
Calif., is to be merged into First

CONSOLIDATIONS

At

of* First-

>

Trust

..Thursday, September 8, 1955

.

first

2.7

consumer

half

of

are

1955.

finance
industrial loans.
accounted for

instalment debt since sales

classified as commercial and

borrowings

estimated

to have

Volume

182

Number

•

5462

.

The Commercial and Financial Chronicle

..

(983)

Currency, Ray M. Gidney, wrote
to

national

that 'in

banks

some

in

noting

July

there is

areas

ticularly

in

the

entire

granted,

flight

nancing field, by extending
turity, and accepting down

CHICAGO,

fi¬
ma¬

pay¬

L.

Blair

111.—Mrs.

has

President

of

rounding out 28

Lorraine

who

is

which, measured in terms
value, are lower than
previously hacj been considered
actual

of work in

years

made

Vice-

the financial field of

Marshall

Com¬

insurance and banking on LaSalle

been

the

ments

of

in finance

woman

top¬

a

par¬

automobile

pany,

Investments, with main of¬

Street.

fices

in

director

Milwaukee,

Now

country.

This is another honor for

Of Marshall Go.

dency to loosen terms under which
this type of credit is

of their women's activities for the.

Mrs. L. L. Blair V.-P.

ten¬

a

investments,

of

Forum of

the

Women's

has been
erts

examiners'

past tlwree years with this firm as

year,

resident manager for the State of

bank

credit.

consumer

On

that

Aug. 9-11 members of the

Federal

Reserve

Board met with

delegations of sales finance
pany and
cuss

First

National

Bank

John

DENVER, Colo.
Donahue

is

Management

Finn

has

joined

and

Mrs.

Chicago

awaken

office, 30 North LaSalle

America,

With Schwanz Co.
Two With Gibbs & Co.

in its 21st

now

teacher of classes in

as

Blair

Illinois, with headquarters in the

has

done
to

women

much

their

to

tremen¬

dous economic power.

Street, she will be in charge also

AURORA, 111.

(Special to The. Financial Chronicle)

WORCESTER, Mass.
Cannon
are

and

Alson

affiliated

now

L.

—

Ingrid man,

Clark, Jr.

with

Gibbs

&

Co., 507 Main Street.

with

Jr.

has

Schwanz

Merchants

ing.

—

to 36

&

*

...

months, increase the risks of

repossession,

hurt

repeat

buying,

and acid to the customer's costs.
-

And how steel

Optimism Running to Excess

"The discount rate and other of¬
ficial
actions
taken
to
restrain
credit expansion are not intended
to

deny

brings

America's

you

largest and oldest

crop

.

.

.

borrowed money

access to

for soundly
conceived, useful proj¬
The question is one of dis¬

ects.

couraging

marginal
and
addi¬
projects that compete with
soundly conceived and use¬
ful
projects
and
raise
prices
against
everybody.
After
all,

orn.

tional

Golden Bantam,

more

supplies
have
and

labor

of

limits;

do

too

signalize

that

we

much,

drawing

materials

rising business

prices

economy

and

and

i

v e

costs

the

free

trying to
too little,

saving

e x c e s s

credit lines,

in

are

1 y

on

our

over-committing

Cross—and

an

ism

running

cess

to

has

to

been

disaster.

authorities

uncontrolled

historical path

our

It

is

are

ex¬

well

acting

that

to

the

in

meals year
It's

round.
in

grown

Union. It's

our

In fact, more
than to any

contain

it

every

land is planted to

in America

Belmont Elec'd Director

August Belmont

to

Corpora¬

the

Board

Directors.

know how most

sweet corn har¬

brought to

That is in tin

in

you

one way.

cans.

of

Advantages of tin

Mr.

Belmont,

a

Vice

-

dent

and

Di¬

of

Dil¬

Presi¬

rector

as

dinner table? About

of all

percent

vested is

tion, has annouced the election of

as many

years ago.

Corn. And do you

80

corn

other seed. And botanists

grew

60,000

state in the

oldest and largest crop.

of it gets to your

Reichel, Chairman

other

protect rich food

hearty flavor,

say

Dr. Frank H.

dozen

value, add variety and zest to our

forces that, running out of
hand,
can be our
undoing."

of the American Viscose

a

-picked and packed at the

precise moment of perfection to lock

ourselves.

A sensible optimism is
essential to prosperity. Optim¬

Shoe-Peg,

Country Gentleman, Golden
varieties-

There
50

are

cans

reasons

many

why about

percent of our food supply is pre¬

served in tin

Actually,

cans.

a can

lon, R e a d &
Co., Inc., will

99

fill the

is

make it resistant to corrosion.

vacan¬

percent steel, coated with tin to

"'''"Wi''
•

•

created by
resigna¬

cy

Tin

cans are

easy

to

carry.

You

•••'

•

••

•

"

■

can

.

the

tion

of

Mr.

Charles
McCain.

Reichel

S.
Dr.

Belmont

ced

Mr.

Mc¬

has

strand

as a

that

Director of Chem-

succeed

him

Board.

Mr.

President

of

Mr.

Belmont

the

on

McCain

a

easy

to

store,

■

a

Dillon, Read

time of the year.

What's more, tin cans are

sanitary.

will

They're used only once. They're eco¬
nomical, both for the canner and con¬
sumer.

And

so

many

things—such

as

former

food, paint, oil, beverages—come to

&

you

Co.,.

1950.

Since

graduating

field except for four years' service
in the Navy during World War II.
He

&

joined the firm of Dillon, Read
Co.

Inc.

in

1946.

National's Role
The

Exchange
Weekly Firm Changes

The New York Stock
has announced the

Exchange
following firm

of the

than 35

plate is, of

course,

SEVEN GREAT DIVISIONS

just

one

of

work

closely with customers in

cooperation between the

fields

to

better

products.

can

cans

maker in the devel¬

improved types of

a

production

men

STEEL-MAKING
Great

Steel

provide

better

many

steels

for

Lakes Steel

Company

•

leading supplier

electrolytic and hot-dipped

and

Products

Company

Corporation

•

in the

our

our con¬

customers.

changes:

Stanley

&

Co.,

dissolved

Aug.

31, 1955.
Alfred

R.

Stamm

retired

from

partnership in A. L. Stamm & Co.
Aug. 31. •




NATIONAL STEEL
GRANT BUILDING

CORPORATION
PITTSBURGH, PA,

Weirton

•

•

National Steel

Tlie Planna Furnace

National Mines Corporation

quantity wanted, at the

possible cost to

•

Stran-Steel Corporation

goal to produce steel—America's

lowest

STRUCTURE

Corporation

llanna Iron Ore Company •

great bargain metal—of the quality

ing product requirements.
National Steel is

and

For, at National Steel, it is
stant

WELDED INTO ONE COMPLETE

steels made by National Steel.

is the result

in

plate needed to meet widely vary¬

of both

more

made each year..

research

steel mill and

tin

cans

Our

available to you

of constant

largest producers of this

product needed for the

many

ever-increasing list of items made

opment of new and

New York Stock

plate. Its Weirton Steel Company

one

Tin

from

Harvard in 1931, Mr. Belmont has
been in the investment
banking

tin
is

billion

in tin-coated steel.

Inc., having retired from that post
in

■

wide choice of delicious

a

foods at any

Chemstrand
is

MiiW: |v

a

complete meal. They make

his

Corporation, and that it is

expected

They're

of

available

also

Cain

submitted

resignation

source

also

a n n o u n

that
August

drop them and they don't break or
shatter.

L.

Beu«

connected

Company,

National

more easy credit to car

How Wonderful Corn Is

John

become

Gen¬

third to one-fourth, and
prolong¬
ing the repayment terms from 30

}

(Special to The Financial Chronicle)

Corpora¬
tion
simultaneously issued a warn¬
ing to its dealers to 'go slow' in

buyers, and pointed out how cut¬
ting down payments from one-

445

the

Motors Acceptance

extending

W.

Hamilton

Corporation,

com¬

The

Thomas

Grant Street.

E.

the mounting volume of in-,

borrowings.

—

with

now

bank executives to dis¬

stalment
eral

changed to Shelley, Rob¬

Co.,

(Special to The Financial Chronicle)

Shelley Company

Building.

basic finance, lecturer, and writer,

time

at

&

I.

With Hamilton Managed

firm

Finance

report forms would be revised to
include a section dealing with

same

revealed

E.

The

—

As founder and executive

Continuing her connection of the

He

of

name

Colo.

firm's staff.

Wisconsin.

the

standard."

Shelley Roberts

DENVER,

15

Bank

Inc.,

Build¬

10

The Commercial and Financial Chronicle

'

(984)

firm

F

Montgomery Ward

—

week's

among the
sional favorites
was

THE MARKET... AND YOU

its

dentally, also

the industrial average

cerned,

far

is

as

con¬

bracketed the Labor than

Day holiday — sometimes a
market turning point—with a
new all-time
peak both before
and after the layoff to show
that it

little this year

means

the index

to

that are at historic peaks.
Macy sold as high or higher

ages

to

levels from

recent

1951.

Stores

In

stands

out

the fact that the
a

historic

1946

fact, only Allied

starkly in
stock posted

high this year which
of the others.

isn't the pattern

of

ance
sues

raged in

a

were

the year

and did noble work,
have been in something

but

%
%
■*
nearly 100
of a consolidating phase re¬
Another specialty issue
points above the "fabulous"
cently. Marquette Cement
peak of 1929.
that, measured in terms of and Lone Star Cement were

now

*

*

$

previous peaks and the stock
prominent on the new popu¬
There was little basic market generally, is far from
larity putting them in posi¬
in step with historical highs is
change in the nature of the
tion to test their previous
market except for somewhat Hazel-Atlas Glass. The going
highs on any follow-through.
quickened activity. Even was good enough to Warrant
if
if
if
among the components of the a 5-for-l stock split in 1946
The huge debenture offer¬
industrial
average
the but then the competition set
ing of American Telephone,
strength was selective and the in in earnest as other contain¬
its seventh such post-war
rails continued their leisurely er makers fought for the mar¬
financing operation, weighed
pattern without seriously tak¬ ket. The stock posted its postheavily on the stock which,ing over 1 e ad e r s h i p or split low in 1953, virtually
complicated by automatic
racing to a new high with ignored the spirited general
markdowns from the rights
abandon. Oils offered an oc¬ market
upturn that
began
and
from its famous $2.25
casional feature to the general that Fall, held in a five-point
quarterly dividend, reached a
parade but with little of a range through last year and
broad

demand for

the

far

reaction low. This bottom

this

was

has been
group
also closer to the year's low
generally. Fall demand for neglected to where it has only
than to the high which was a
the oils is one of the seasonal, a three-point swing for 1955
so
far. It is about as pro¬ peak since 1946. The actual
though minor, aspects of the
rights were distributed over
stock market, but there was nounced
a
case
of
neglect
the holiday weekend so that
no
apparent rush to start it through a rather spirited bull
the full pressure of the selling
off.
market swing as can be found
❖

%

so

$

in the list.
*

Metals and Aircrafts

A New

Metals continued to outpace
the other divisions
occasional

an

were

latest

Skyrocket

Among the

along with skyrockets,

at

exer¬

at hand to account

was

partially for the poor

,new month's
least' tempo¬

;•€

increases

in

a

this week the issue had

the

rupled
price of the red metal. Chem¬ cently

over

its low of

quad¬
as

re¬

is

case

were

of

for

one

of

an¬

waiting

models to

new

sort

the

on

what

see

acceptance' is in store
makers'

auto

were

able to put on some

as

low of this year.

berant

market

behavior, the
occasionally showing
pinpoint demand and Gimbel guessing centered mostly on
the chances of a workable
distinguished by an occasional
appearance on the list of new plan emerging to retire the
highs. With a new round of preferred. Officers and direc¬
Stores

wage increases

already under¬

tors
more

at

the

than

last
half

report
of

way, leaving workers with
greater personal income than which, if still the
ever

before,

and

credit

tightening working mostly at
curtailing sales of hard goods,
the logic of a
good number of
market commentators is that

department stores will benefit

importantly from all the inc o m e

they

available.

are

just

Moreover,

going into
their
heavy selling season
which lasts to the
yearend
holiday peak.
*

In

have

*

the

*

addition, the store stocks
another

favors them
are

now

that

if

A Pair of

the
case,

near

high-flying
the

stock
pre¬

buying for control.
if

Split Candidates

suffering

our

in

tricts
n

e

d i

of
c

t

u

as

aver¬

It

of

sult

the

Federal,
of

unions,

State

nation

our

devastated
of

191

and

in

uncharted

little

and

any switch
the
rails
to

to

■
upsurge.
reaction which

and

dynamic

new

broad

26

territory,

sign of

interest
a

The
came

summer
to

some

points in the industrials,

only

about

milder

been

ad
the

all

aid

where

area

persons

private

from

to

hundreds

the

of

the

lives

snuffed

were

of

aid

parts

out

missing victims

still unaccounted for after the

are

homes, causing

homeless

people

40,000

over

75,000 job¬

and

aster

specialists

districts
lies

to

who

into

help

the

the

The

Cross

Red

5V£%,

correction

was

or

far

a

had

than

payments. The other "Avery"

[The
article
time

views
do

not

coincide

Chronicle.

expressed

in

necessarily at
with

They

those

are

those of the author

this
any

of

presented

only.]

the
as

the

our

and

all

are

brothers

The acts
two

under

money

the

heart

children,

even,

for

a

few

of

was
con¬

poured

America,

in

little

selling

pennies

a

lemonade
glass to add

out

records like

American

maritan

The New York Stock

New

quickly

a

Exchange
call to its membership

York

and

raised

elsewhere

fund

a

the

unfortunate

of

over

families

and

The Federal Departments of our
at

a

Eisen¬

President

been
o

appointed

f

Vice

with

emerg¬

grants to restore public util¬
ities and authorized nearly a bil¬
ency

dollars

tion

Loans

placement

in
for

of

Mobiliza¬

Defense

the

like

or

the

na¬

page

the

Good, Sa¬

national

a

scale.

repair and

re¬

the

to

new

office

it

was

by

James E. Day,
President.
M r.

Ogren

began

his

business

ca¬

the

at

reer

1928

and

served

in

i n
has
va¬

capaci¬

since that

time—serving
Secretary

as

the

of

Carl E. Ogren

Ex¬

change for the past 13 years and
Vice-President for eight years.

as

of

office

help the flooded towns and
municipalities—the Massachusetts

President

by the passage of a
$55,000,000 bond issue to finance
flood
relief,
while
Connecticut
cancelled $35,000,000 of construc¬

is

Secretary

Assistant

former

Rogers,

to

to the
Donald

Ogren

Mr.

Succeeding

defense

stricken

Without loss of any time,
the State governments moved in
plants.

Exchange

Presi¬

-

dent,

ties

lion

our

Executive

rious

affected

on

of Midwest

transfer of $100,000,000 to provide
states

annals

on

banner

CHICAGO, 111.—Carl E. Ogren,
Vice-President and Secretary of
the Midwest Stock Exchange, has

hower's suggestion authorized the
the

skin"

the culmination of the

Rule

Exchange

children.

Government

the

Qgren Exec. V.-P.

who

$150,000 to alleviate the suffering
their

or

Golden

announced

their mite.

sent out

and

deeds of the last

and

weeks stand

tion's

citizens for

personal

a

many

when affliction overtakes any sec¬
tion of our country.

as¬

help complete

to

so

morale

well-being of the unfortunate vic¬
tims, proving once more that "we

immedi¬

job. President Eisenhower

the

Vice-

Exchange.

pointed

legislature

tion

funds

to

conserve

In New York

J. Bergman was ap¬
Assistant Vice-President
charge of Floor operations.

in

make loans at 3%

are

going

(Special to The Financial Chronicle)

to business and

organizations.

The De¬

partment

of

is

Commerce

HARTFORD, Conn.
J.

DiLorenzo

plan¬

ning to lease to stricken factories

has

ated with Denton

Main

—

Anthony
affili¬

become

& Co., Inc.,

805

Street.

Sheffield Adds to Staff
(Special to The Financial Chronicle)

NEW

M.

LONDON,

Zeien

has

with
State

Conn.—Alfred

become

Sheffield

connected

325

Street.

&

Company,

Smith Barney Adds
(Special to The Financial Chronicle)

to

industrial

'

-

With Denton & Co.

Governor Harriman

fund

%

.*

credit in¬

confident that the State could

of

George

stead for flood recovery measures.

was

generally

on

more

the first to make

from

Red

10,000 fami¬

immediate

tribution

Army,

flooded

required

$8,000,000

and

helping in

in

tne

itude, sent 300 of its trained dis¬

of

are

rebuild

collective effort of

Red

in

to

ways

hurricane struck, the
Cross with its usual prompt¬

Wnen

munificence

and

persons.

less

the

inspiring to record

public

Salvation

ties which

flood damaged and destroyed over
20.000

the

Cross. Catholic and Jewish chari¬

rushed

been

all

million dollars, foundations, labor

Alexander Wilson

Friday,
Aug. 19.
cane

have

resources

private
agencies including large and small,
corporations which contributed a

hurri¬

Diane

indeed

is

beneficence

of

re-

a

unemploy¬

pressing

the needs of the hour.

the

Rhode Is¬

land

relieve

called back

Jersey

and

the

factories get back into production

York,

New

in—J

help

to

Bethlehem, Pa., has reopened and
12,000 workers.

,

Pennsylvania,
New

machinery

500,000

owned

The Bethlehem Steel Co. which
had to shut down its plant at

-

Con-

t i

c

s

districts

flooded

dustrial

into

the

flooded

the

Labor have thrown their

fellow Ameri¬
cans

in

pieces of Government

Other Government departments
including the Department of Agri¬
culture
and
the
Department of

and

distress of

fellow

our

public utilities.

and

the

relieve

aid

to

bridges, highways,

ment.

t o

$15,000,000

— they
way back in 1928 which, in¬
step with cidentally, ended a period of
issues else¬ half a dozen years of stock




in

now

1

anticipated.
Gypsum, which forged
pay for its relief work out of ex¬
The determined penetration
isting funds.
above par on something of a
of the previous high in the
To
offset
the
total
property
permanent basis in 1950, and
face of the time of decision damage estimated at $1,670,000,000
joined the 200 club last year,
in
all
six
States,
the Federal
that Labor Day has come to
reached the 300 mark this
Housing Administration declared
represent was also somewhat a moratorium of FHA payments
week to rival some of the
unexpected. So, for want of on the stricken homes and also
more
spirited runups of the
authorized special loans for pub¬
last decade. A good bit of the any other indicators the mar¬
lic works and private housing re¬
ket forecasters are
dusting off
demand, obviously, was on
pair.
The Farmers Home Loan
their predictions of 500 for
Association
with
a
$121,000,000
split hopes, particularly since
the Dow industrials once disaster fund as well as the Small
the last capital readjustment
Business
Administration with
a
more.
was a
10% stock payment
U. S.

in

market

little in the way of guideposts
around
for
the
industrials,

had kindle

currently

nowhere

where and

element

cludes any

responded

1956

1953 and triple the lines. Of the two listed mem¬
The issue is bers of the Big Three. Gen¬
good shows with, however, not among the highly-rated
eral
Motors was
somewhat
some indications of a
willing¬ Stock Exchange offerings,
more buoyant
than Chrysler
ness
to
take profits rather what with
skipping the pre¬ which occasionally was a
readily after any sharp ferred dividend rather regu¬
shade heavy.
runups.
larly and paying on the com¬
■'f
if
if
*
*
*
mon
only three times in the
Technical Indications
last score of years. In the ab¬
Store Stocks Stirring
sence of
any specific news to
Some stirrings continued in
Technically, the market
the stores stocks, with Allied account for the overly-exu¬ entered its Fall season with
icals

broth¬

my

who....

land

our

aid and called

multi-point hops of the
single session. At its peak the

I

been answered

has

used

their homes,

ately disbursed $2,000,000 for first;

The motor stocks

the bellwethers in the better

rebuild

to

convincingly in the affirmative by
thousands of generous citizens of

sistance.

action of the stock.

was
United Dye & other group that continue in
aircrafts. Chemical which put on one of
a
discouraging pattern. Here

the metal group with coppers
still somewhat ragged despite
the

cised

*

won't be

that

flareup in the rarily,

well-depressed
Steels

*

at least

Bellwethers

keeper?"

year

of those

citizens

The question, "Am

er's

A review of private, State

measures

factories and

the stocks in good

strength earlier in

on

stricken

combat the loss of lives,

to

Northeastern States.

our

reappear¬

issues

occasion

when flood, rain, wind and devastation

Government remedial

and

note

new

a

was

demand.j These

leaders

homes and property

of the cement is¬

some

among

America arises to the

if

if

Something of
for the week

My Brother's Kesper?
By ALEXANDER WILSON

in 1928.

was

if

The stock market, as

Am I

toying with

year's high. The last split
Montgomery Ward, inci¬

in

STREETE

By WALLACE

—

occa¬

Thursday, September 8, 1955

...

CHICAGO, 111.—Alpha R. Edsel
has

been

Smith,

added

Barney

La Salle Street.

&

to

the

Co.,

staff

39

of

South

Volume

Number 5462

182

The Commercial and Financial Chronicle

..

.

(985)

Continued

from

plane in public service through
meeting a fundamental responsibility.
This is the responsibility

New

Developments in the
Investment Company Industry
...

fact,

get the $3 if good

we

be shown.

can

And vice versa.

people

the

simply

reason

to

weeks,

i

investment
I'll

ness.

lights.^
I

only

hit

be

may

few

a

I

.

busi-

company

there

sure

are

highand

in

our

industry who might disagree with
but

me

of

one

the

most

signifi-

cant

industry developments in the
past year or two, I think, has been
the

establishment

of

the

extent

mand for facts

savings,
;

iinanced and governed branch of
the industry's national association,
The real significance in this new

lies, I believe, in two
First, it represents a new,
high degree of willingness on the
program

areas.

.

.

the

public

this

booklet

Easy
ings

'Investing

fit; and, second, in the public inentire

extension

business

mentally

of

sound

full disclosure

individual

to

the

funda-

been

mailed

Made

panics

in

original

this

new

markets

tion

Program

three

components

study,

with

Informainto

—

respect to the in-

most

thorough

search
and

and

this

of

statistical

analysis.

bers

of

staff

by

company

prospectuses,
and

collection

important part
job involves the

study

all

re-

An

research

continuous

of

of

trade

mem-

reports, of
magazines

papers,

of

many

publications,

of

government

financial
re-

ports, etc.
Information—the product of research—is

useful

only to the dethat it is interpreted and dis-

gree

seminated.

News

stories

are

pre-

pared and released to the nation's
magazine

press;

cluced,

stories

reports

to

members,

various

"publics"

to

agencies,

to

government

special
Every

practical

sensible

prepared,

are

and

financially

short of

means

the

information

reaches those

to

paid

any

advertising is employed to
that

pro-

are

assure

developed

whom

it

is

most

important.
Efforts

the

the Association,

of

information

each of

made,

are

general

testified.

developed in

our

The

response

the

pie^of

with

such
a

of

to

too,

de-

public.

Why?
Because
by so
doing,
officials and others know

in

which

the

Program
respond in the

to

I.B A.

most

Preparation
of
comprehensive statement—

joint activity of both branches
the Association - would have

impossible two years
research
program
of

The

P.I.C.,

in

short,

it

made

I.D.A.

regulation

keeping

and

administrators

terested

with

ments in

ago.

specific

the

be published.
Crystal-ball gazing

of

risky
to

So

make

general;
the

to

I

predictions I

any

mit'be
please

asked

during

the

hearings,
our

by

the Chairman of the Senate Com-

mittee.
The

value

the

of

Public

In-

formation Program, in serving the
public interest, is demonstrated in
another way. Our staff is a wellread staff. I'm often amazed b,y

the variety of publications staff
members study. Such study makes
for well-informed people, people
alert to the needs and interests
not only of our shareholders, but
of the economy as a whole.
It

study

was

the

on

Information

mentioned

takes

also

actions

ours

many
a

of

us.

through State and Fed-

by the financial industry
itself — our
Stock
Exchanges, Investment Bankers Associations, Securities Dealers Asthe 11929

of

mote, if

is

debacle

most

impossible,

not

The economic sciences have alvanced

know

I

this

<of

"than

of

which your Executive

better

no

demand
actual

from

ajs0

evidence

the

public

history. The
July 2 issue of the "Kiplinger
Washington Report,' a
weekly
an

newsletter
as

carried

four-line

a

"Primer

panies

—

they

following

and

such

closed-end

any

work,

groups

offer, without
of

Com-

recom-

one., To

get

a

copy write the National Association of Investment Companies, 61

Broadway,

New

York, for 'Investing Made Easy. No Charge.;
Three days later a member of
the

staff

called

happened

company

automatic
chine.

said,

me

to

to

if

my

have

an

see

letter-opening
mawas so heavy, he
have taken two

The mail

it

would




an

too

which led,

adootion

to

of

Principles

of

a

by

Life

Underwriters.

achievement,
was

good

not

I

beonly

for each business, but,

equally important, for the policyholder and
shareholder public, whom it profrom

the

highly volatile,
dog-eat-dog, competitive rivalry
that appeared to
be developing
with great momentum at the time,
introduced
Public

udice

and

nubile

interest

We

Srward to
euidan^
in achieving those
fnturn ^wlll contoue

#

m,r

But,

as we meet

there

1955,
which
cent

are

to

look to you.

thepR5§s

MID-YEAR 1955 EDITION OF

"SECURITY DEALERS OF NORTH AMERICA"

r

concern

level

of

quotations

is,

The

listed

and

here in August,
disturbing

some

1929

some

all
our

of

events

The

us.

common

perhaps,
volume
unlisted

re-

stock

the most
trading

of

stocks—in-

dicating the vastly increased

this

last

six

months

num-

to

A 1,500 page

book containing 8,400 listings covering all United
cities.
Listings are arranged geographi¬
cally and alphabetically, and are comprehensively detailed:
States

and

Firm

Canadian

Name

under

which

business

is

and

conducted

dot•

established

pass

this

discussion

of

Information

Program
statement of possible prejfrankly, I'm convinced

—

new

gregating

corporate issues ag-

$3,328,000,000

United States and

some

in

the

$510,000,—

of Business & Class of Securities Handled

Names of Partners or Officers.
Slock

Exchange

and

Names of Department Heads

Association

N.A.S.D.)

000 in Canada-new highs in both

(including

Memberships
'

Phone Numbers^—Private Phone Connections—Wire Systems

countries.
A

heavy responsibility is yours
in such circumstances for, while
this is evidence of prosperity and

Teletype Numbers—Correspondents—Clearance Arrangements
An ALPHABETICAL ROSTER

which

will to expand, such momentum
is also conducive to over-enthusi-

they

are

of all firms showing city in

located is another valuable feature.

a

Bound in durable limp

over-expansion, higher risk
and
greater potential
disappointment and loss. You have our
sympathy in the magnitude of
your task, our best wishes for its
asm,

fabrikoid

—^12*^

—

ENTER YOUR ORDER TODAY

successful fulfillment.
May I ask a similar understandby you with respect to our

ing

own

responsibilities

that in the last 15 months, in large

the

this

en-

vironment.

part because of this program, this
industry has attained a new high

in

life

By comparison with
insurance industry our

$8V2 billion in assets is only one-

HERBERT D. SEIBERT & CO.,
25

ef

when such action will

Disturbing Similarities to 1929

similarities

a^!d

heavy responsibilities to those who

the

#

look

nurnoses

Governments now accept
challenge of placing brakes
upon
speculative
excesses
and

#

rPr

ennn^rate anri rlehherpL
when su?h netfon will

the

providing stimulants when
patient appears unwell,

pro-

vour

General Character

which

a

honP

than 524

was

with

we

a

s^iousir'conrprnpd

public Information Com-

of

j

believe,

Street Addresses, including Post Office District Numbers

Committee

N.A.I.C. and the National As-

the

we
A

we

the suitability for citizens in

s0ciati0n

tected

the

w*

aac

off

and
use-

that

states and provinces of more

Statement

lieve,

one

one

short

upon

Sentember

]oint

one,

vou

lor

a

l' 11131
institution.

'

an

your

mittee staff work,
iact

positive

in

aware

devoted much study.

This

Investment

mutual

mendation

the

item:

on

funds—how

what

case

was

as

Federal

had

History

on

vastly since then, too, and

stocks, is another,
What a task you gentlemen have

Case

initiated

carry

constructive element

with

no pressure

the

Public Informa-

was

hope,

become

tainlv

United
in

reflection of this

a

that'the

are

have

the
and

re-

proposed

to

is, in part

We

in

Canada

of those great countries

economy

Thus is demon-

when there is

sociations and others—a repetition

potentially harmful aspects of the
matter

divergence

But there is unanimi-

and

to

as

I

respect

there is inde-

thoiight

investors

of

States

Port.s

institution such

the

our appreciation of the role
do and shall play in the wel-

fare

better

of

with them.

a

an

this

It

sigh

great

bers of persons buying and selling

legislation,

create

wide

about

we

dechnes

Na-

outlook.

quick calcula-

proposed

plan,
a
study
which
clearly established the defects and

by

you a

years

qualified source to turn to when
•questions—pro or con—about investment
companies are
raised

the

of

nrice

be made

taken

in

most careful

study

we

with

shows

also

in

the

Investment

ty in

iwJ?fhY

me

eral laws and regulations, through

ciation to conduct

a

A

encourages

obvious.

actuarial

1940

of securities by the

investment values

in the

26

purchased

of

us

pimples to

goose

legislation—over a year ago. Staff
analysis and reports led our Assoand

since

purchases

when

too

hold

my

in

more

financial

back, then, to 1929.
Mere mention of that date brings

Committee

staff members which, so far as the
investment business is concerned,
first uncovered the significance
of proposed "variable annuity"

not

of

opinion.

Quite the

shares

—new

specifics,

have

fi0n

of

part

net

appear

regarded

do

shareholders

"nvestaent ^

it's

in

ful and

History

one

favorite pastimes;

my

relief that

tions

It is gratifying to report that
presentation was commended

not

pendence

we

company

and

faseinat-

of

in many others

as

will,

contrary

will

is

that

you

Program

markets.

older

the

members

tion

have exceeded redemptions.

soon

Committee

to the ques-

year

assure

attitude

securities

our

and

of
forecasts
and market

business

It

past periods of declind.

membership,

responsibilities this past

in this business.

as

The

complete summary of
Association's
activities
and

the

long-term

investment

ment

a

the
investment
companies'
witness to present complete, welldocumented
material
responsive
in every way to the broad questions asked by the U. S. Senate

well

developareas.

the

145

variety

2,000,if and

History shows no tendency for
liquidation on the part of invest-

all

at

in

Association

the

legal

A

-The

tional

management.
It is for
that we ask your un-

some

-

world of tomorrow,

companies will, I
think, make an important contribution as a stabilizing factor in

in-

other

to

respect

these

including

possible

for

as

and

greater

a

industrial

new

the

com-

securi-

informed

persons

assume

constructive role

growth of our
economy,
and securities market
trends. But of equal significance,

disribution,

the membership,

like

■

indus-

our

Companies would give

to

public
a

will

of

reason

will keep faith with

Canada

in

to investment

believe

I

ahead.

years

ing

that

authorities,
both
State,
cooperating

and

respect

pany

interest.

a

tax

Annual Report to the

•

exam-

Information

able

been

public

to

sent

good

is a

manner

Public

has

been

here.

you

Here, I believe,

Public

velop the materials about the investment company
business that
are
so
widely in demand among
•opinion leader groups and among

other features

are

myself,

and

*

and time-tested British and Scot- 1
tish investment trust friends, we

S.E.C., the N.A.S.D. and

been

requires

program

There

months

try will meet it and

seek
largely
securi-

is

us

the

For

with the

Richardson, Chairman of

sey

jng

The challenge is given to both
us in
this August of 1955 and

in

and

new

years.

continues

program

times

The acquisition of data

of

Federal

Mr. Dor-

of which,

vestment company business.

a

first

States Senate in March.

copy

acquisition,
dissemination of in-

and

formation

the

effectively to carry on in the areas 000 shareholder accounts
0f activity assigned to it—work- when there are interruptions both

in booklet form, a
I understand, has

down

rapidly : as

today is the fact that they were
on to testify before the Fulbright Committee of the United

called

ties

breaks

growing

the

That

questions
published

during these early
Briefly,
the Public

traditional, the conoriginal program of the

and

oral

tion

is

derstanding of the heavy responcapable admrnistra- -sibilities we face as our size and
tion of John M. Sheffey, Execu- our shareholders expand so raptive Secretary who is here and idly in these booming days.
whom most of you know.
It is our belief that we can and
tee

was

I'm proud to have
role in the planning for
effort, and in its direc-

a

is

fessional

the

manage-

on

rection of the Executive Commit-

securities

our

your

Asso-

the

the

the
significance
investment com-

of

of

of

professional

subject to purchase or sale
the basis of emotion, inadequale knowledge or misfnforma-

to

two —our-size

by

than

investment companies, of course,
—
diversification,
convenience,
ready
marketability,
custodianship—but basically we offer pro-

time,
long-time

tinuing

printing in March, 1955.

the role

a

Public

National Association under the di-

of that Committee

of the industry.

played

banks,

management,
management of equity

have

out from

Indicative

cussed

to the written and

components

company

viewed

associa-

tion.

it

from

copies

ciation's office since

of

sketch

new

because

part of the

the

on

,

for familiarity with it, I have not dis-

of

the

requirement

loan

liquidation through share redemption
and
when
securities
are

part
plan-

half of 1955 will testify.
Our responsibility lies in something more than size.
For the

tion Program. For reasons of

with

for mutual bene-

an

the

are

financial

$600,000,000 in sales in

full

of

three print-

125,000

over

the

of

the

is

so

j»ve tried to
ture

ancj

,

sources

have required
—

de-

the investment

on

staff members and other members

it

that

But

to fol-

...

principles

which

modest.

people, in
the democratic tradition, can have

Executive Committee, assisted by

terest

basic

disclosure

take

program

complete

to present the "bad" news

.

along with the "go°d"
]0w

part of industry leaders to undera

provide

to

mutual
in-;, mention but

formation about itself to the pub-

lie

demonstrate

of

business.

company

Public

separately

a

with respect to the public's

individual's

an

brief pic- a
Informa- -ties.

to

seems

_

Information Program,

savings

position of

a

gent judgments.

Requests irom all

some

re-

m

^

I'm

mail

of

tions,

of

4,000. This
clearly the

.

bit prejudiced

a

three

Witnin

number

day

and

institution in

institutions

to intelli- basic feature which investors

ltem

If I may, Id like to £ay a few
things about recent developments
the

the

.

working

it.

open

•

,

entire

ning—savings

trust

By comparison with

other

^estf the Kiplinger letter passed the facts indispensable
^suiting irom this one

Investment Company Business

in

..

tenth theirs.

of any

5

page

17

INC.

New York

Park Place
REctor 2-9570

7, N. Y.

'

18

The Commercial and Financial Chronicle

(986)

Continued jrom

true.

Recently I was reading the re¬
of

marks

well-inten¬

possibly

a

who had

tioned lawyer-statesman

the day.
getting
a smaller share of the consumer's
food
dollar now than they did
expert for

farm

turned

The fact that farmers

are

during World War II proved con¬
clusively to this gentleman that

agriculture

American

frightened

as

the

remembered

I

told

who

farmer

of

his

of

getting 100%
food dollar,"

was,

consumer's

this farmer said. "But," he

"it

took

a

ex¬

own

I

"There

the

of

much

so

of

added,
I

time

the

should have spent, in
I

the field that
going broke."

came

near

Causes

of

Decline

Share

of

Consumers' Income

Farmer's

in

reasonable
explanations for the decline in
t,he farmer's share of the con¬
sumer's food dollar. For

thing,
the percentage
received by the
producer during World War II
was
abnormally high because of
subsidies

consumer

Even

one

certain

on

important,

more

questions. Yet if the

ratio

itself were a
reliable measure of agricultural
prosperity, the answer to each of
these
questions would have to
be "yes."
Frankly, I have never believed
by

farmers

much

themselves

attention

pay

the

to

as

various

statistical

yardsticks as do some
of their self-appointed spokesmen.

the

per¬

they

foods

are1 purchasing
quick-frozen

vegetables,

buy.

and

more

fruits

and

cut-up poultry
and other ready-for-the-pan meats
and more ready-to-serve dishes
more

of these additional

or

in

livestock

marketed

are

services

Since the services

—the

his

and

and
fixed
paid. By this test
of net per capita

expenses

measure

income—farmers

as

whole have

a

moving forward steadily

on

the economic front almost without

interruption.

Even in 1954, with
prices declining, per
income
of
farmers
in¬
over
the preceding year,

farm

capita
while
l'arm

capita income of
people moved the other
per

nonway.

Nevertheless, per capita income
of farmers last year was only onehalf that

of non-farm

itself, this is
statistic.

people. Of
rather frightening

a

It affects 22 million peo¬

ple living

on

classified

as

the 5,5 million units
in

farms

the

United

Yet 2 million of these 5.5

million farms produce 85%

million

units

produce

so

are

aration

and

broader

markets

for

agricultural
products. Market expansion means
more

dollars

consumer-

farmers

share.

to

share of

And

for

smaller

a

larger number of dol¬

a

lars is preferable to a larger share
of a few dollars,
as
my
friend
with the road-side produce

stand

discovered for himself.

We

money.

through

are

constantly trying,

various

our

marketing

programs,

to cut the cost of dis¬

tribution

and

increase

farmers'

returns.
The

Parity Ratio

There is another

figure which is

ceived

by farmers against those
paid for goods and services. The

parity ratio is important. It tells
a
part of the story of how the
agricultural economy is operating.
But, I emphasize that it tells only
part of the story.
illustrate. Back in

the

parity
jumped to

ratio
92

in

stood

at

1936

1935

88.

and

It

rose

further

to 93 in 1937. In each of
those three years it was from four
to

seven

points higher than it is
That should have meant

today.
relative

prosperity

from 1935

for

farmers

through 1937, if

we

ac¬

cept the doctrine that this parity
thermometer tells all there is to
know
about
agriculture's
eco¬
nomic

well-being.

Now I ask you who

ing in those
ter

off

Were

then

were

farm¬

years: were you

than

you

are

bet¬

today7

profits greater then?.
bqtter.able jto meet your

your

Were you

obligations,. to provide for your
family,. to -educate- your children
and to

agricultural prices.
marketings from
these

support
minor
I

buy the things that make




gen¬

of

smaller farms

limited, price
of
only

so

are

programs

assistance

are

at

best.

might

add,
parenthetically,
efforts by this Administra¬

that

launch

to

Rural

a

Program

farmers

Develop¬
low-income

for

received

was

in Congress

with little enthusiasm
the

people

who

by

of

some

shout

loudest

about the dire

plight of American
In fact, 'funds' were

agriculture.
provided

by

out

one

only

Congress

mendations

Of

to

several

carry
recom¬

submitted

President in

the

by

connection with this

program.

is

the

low incomes of
the part-time and non-commercial

In

kind of

fact,
war.

a

Korean War,

a

we don't have any
For that I am de¬

As

parents,

normal

very

again have the

we

worries

Junior's

over

grades in school or his staying out;
bit

have

whether

he

will

night
Ridge.

break

to

seems

riding

fact

has

man

pacity

at

return

patrol

me

of

that the

one over¬

times

our

is

eliminate

ca¬

mankind

all

the face of the globe.
Un¬
less we can learn to live with the
forces which science has

un¬

leashed, little else really matters.
Under the inspired
leadership
of a great President, the United
States is showing the way toward
world

of

No other statesman

peace.

times

has

completely
imagination of the
people of all countries or so elo¬
our

captured

so

the

quently

their
desire
did Dwight D. Eisen¬

expressed

for peace as

hower at the

Geneva

recent

con¬

ference.

The broad objectives set
by the President are yet to

forth

For the first time in

be attained.

however, there exists
atmosphere conducive to dis¬

many years,
an

actions aimed at

cussions and

re¬

laxing world tension. If we con¬
tinue
resolutely along the path
charted by the President, there is
real hope for a just and durable
The transition from

to

a

geared

conditions

for agriculture. Yet
making the changeover

never

yve

war econ¬

closely

more

one

to normal markets and

is

and

better

per

easy

are

this time with less serious dislo¬
cations

as

certain

a

such

farmers

infinitely

adjustments

must

as

be made to the alternative of

con¬

tinuing bloodshed.
While it

with

those

of

urban

people with

similar abilities and capital.

Agriculture
Now

let's

of

umn

Sound

on

is

that

true

there has

look

the

at

farm

col¬

sheet.

What do farmers themselves—the

people

in

know

think

—

the

best

position

about

the

to

current

economic situation and the future
of

agriculture?
Well, for

one

also

and

of

their

thing, rising farm

farmers

to

willingness

sell

to

land

buy

it.

some areas farm land is bring¬
ing the ihighest prices in all his¬
tory.
During the last year farm

real

estate

values

rose

2%

and,

just under the
record high reached in 1952 when
the Korean War was at its height
and there was active bidding for
land as a hedge against inflation.
To me Jhis spells genuine con¬
fidence by farmers in the future
of agriculture.
an

use

practices,

of

fertilizers

greater

weight

in

less

time.

average, are

This Year's Agriculture
Let's

Results

how this affects farm¬

ers
today.
Indications are that
this year's harvests will equal the
record set in 1948.
Marketings of

livestock
are

and

expected

livestock

to

hit

an

products
all-time

high.
Total livestock and crop
production will be the greatest
^

ever.

By selling more, even at
what

commodities, we must
sight of the fact that
nine-tenths

from* their total

by

assets,

farmers
we

come

come.

It

.

is

through

of

lose
than

never
more

farm produc¬

our

tion is consumed at home.

When producers see
kets shrinking both at

has
to

however,

for

cause

been

mar¬

home and

there

is

real

That is

concern.

what

happening, with respect

Cotton

in

is

trouble.

tion.

We

have

been

price

because

that

there

I

of

am

con¬

better days

are

ahead because farmers themselves

constantly increasing operat¬

are

ing efficiency. Perhaps the great¬
est
single contribution govern¬
ment can make to American agriCulture is to step up

education

and

the research
which

programs

bring increased profits to farmers.

basic,
agriculture

Today

long-range
three¬

the

of

are

fold:

to cut per unit produc¬
marketing costs.

First,
tion and

Second, to improve further the
quality of farm products.

Third, to expand markets.
Agricultural

research

provides

deeply concerned about the
problems which are building up

the

for the entire

all three of these problems.

the

industry—especially
man on the farm

producer, the

sound, workable approach to
Edu¬

cation

brings

rectly.

tories
of

Loss

his

—

has

hit

control program

national

cotton

reduced
from

25
million in 1953 to about 17 million
this

That's

year.

35%.

The

vious.

acreage

loss

cut of nearly

a

to

is

farmers

ob¬

Equally serious is the loss

of

business and buying power for
the entire Cotton Belt. And under

authorizations

present

and

pro¬

there isn't much chance of

grams

increasing acreage in the

self

provisions,

of

designed

different

times in the pgst to meet individ¬
ual objectives, has put cotton in a

Price supports have

strait-jacket.

been at unrealistic

high and rigid
flexibility is limited
even
under newer
legislation.
Regulations
governing domestic

levels,

sales

and

of

Commodity

Credit

poration

surplus cotton
rigid.
Under past

very

sales

these

have

also

policies,
tied

been

domestic

same

Cor¬

are

to

price levels

since the late 1940's.
The
loss

of

has

been

serious

a

markets, mounting

stocks

over

ton

result

of United

CCC

and

carry¬

States

cot¬

inventory holdings,

abroad and the loss of
for American producers.
The danger in the situation goes
beyond our own shores. Cotton is
a world crop.
Action by a major
producing country inevitably af¬
acreage

acreage

fects the rest of the world.

United

States

friends abroad

market

If the

forced

were

"dump" its cotton surplus

on

would

to

the
be

hurt.

ndt intend to dump

We do

our

cotton and

disrupt the channels of
However, we must find
to check the continued ac¬

ways

cumulation

start

of stocks and to

thuft orderly disposition of the sur¬

hand. While we
fair in our dispo¬
sition of cotton stocks, the United
pluses

now

on

want to be very

States cannot afford to continue as

merely

"residual

a

supplier"

in

the world markets.
We

have

already made

wider

through

broadening of
for
CCC
Basic legislative revisions
limited

a

export

stocks.

also

are

a start
outlets,

market

farmers

program

needed

to

to

encourage

the grades and
staples of cotton most desired in
both the domestic and the export
grow

markets—and
more

to

put cotton in a
competitive position with

foreign
fibers.

synthetic

and

growths

own

the very outset, this Ad¬
ministration has placed increasing

emphasis upon agricultural re¬
search and education. Appropria¬
tions for such activities have been
increased

for

we

continue our attempts to

constructive

out

these

will seek

ton

during

at

the

two

projects
agriculture's

new

meeting

in

needs

last

the

Important

years.

aimed

research

field

are

underway.
Fruits of Research

While

agricultural

research

is

seldom dramatic, the results often

Through the years, much of
real, solid progress in agri¬
cultural marketing
and produc¬

are.
our

tion
and

has

the

the

research

from

stemmed

education carried forward by

Department

of Agriculture,
colleges and private in¬

state

dustry.
the

in

Back

1920s, the average
in
Illinois was
around 35 bushels per acre.
This
year it is estimated at 58 bushels
yield

of

corn

and, of course, on many farms
yields are much higher than this.
Much

increase

this

of

made

has

possible through the

been

of
In fact, throughout
the commercial corn areas of the

hybrid

us?

corn.

United

hybrid

States,

probably

added

more

farm income than any

cultural

advance

Measured

of

corn
has
dollars to
single agri¬

the

century.

against the cost of de¬

veloping hybrid corn, the returns
to agriculture have been fabulous.

"There

is

similar

a

respect to soybeans.
1920s the United

story with
Back in the

States produced

only about 5 million bushels of
soybeans each year. This year our
production is estimated at 420
million bushels a year-^80 times
as much.
Thirty years ago Illinois
produced only 1 million or so
bushels of soybeans.
Last year

92 million
estimated
that soybean production in Illi¬
nois will top 115 million bushels.
The soybean has created a bil¬
lion dollar a year industry in this
country in the short space of two
or
three decades.
This amazing
growth has been made possible
largely because research activities
opened broad, new markets for
this versatile crop.
The soybean
has a variety of uses, from human
food and livestock feeds to paints
harvest

your

bushels.

and

reached

This year it is

plastics.

close

link

tories

and

It

emphasizes
the

between
the

farms

of

the

labora¬
our

Na¬

tion. It shows how research builds
markets.

citrus

Solutions
As

him¬

farmer

Research has revolutionized the

Attempts at Constructive

work

the

fu¬

near

legislative

at

labora¬

From

The

accumulation

the

apply this knowledge to
operations.

can

ture.
An

from

experimental farms to

where

field

the

The mandatory pro¬

—

farmer hard.

duction

of potential
the cotton

acreage

production

and

findings

research

discoveries

and

some¬

times volume,
that deter¬

minus production costs,

make

to

nature of their occupa¬

Nevertheless,

vinced

needs

their

cotton.

lower

prices, most farmers
in
1955 will probably maintain
gross income near the level of last
And what of the farm debt sit¬ year. At the same time, produc¬
uation? Our records indicate that tion expenses are running slightly
debts equal only 11 % of farm as¬ below a year ago. All of this em¬
sets';.^ compared with/19% in phasizes again that it is not price
a,194<J'and 21%, in-1930. .,Subtract¬ alone that determines farm in¬

ing*#!!* debts* owed

a

growth, important as
exports are for some agricultural

the
see

on

population

toward

re¬

In

as

cultural

brought in¬
creased yields per acre for vir¬
tually all crops, year after year.
In
the
livestock
and
poultry
fields, farmers are utilizing Chem¬
icals and cost-cutting devices to
bring
better-bred
animals
and
to

year

customers each year

new

trade.

efficient

birds

real estate values attest to the

luctance

prices.
Improved

and better seeds have

another

balance

lower

more

Basis

each

before

ever

that

prefer

foods

basis but farmers are
acquiring nearly 3 million

inbur encouragement to synthetic fiber
Nation.''And- I' am production, the increase of cotton

than

history

econ¬

capita

export

peace.

omy

national

our

is humming along at a record
This provides a constantly,
expanding market for the prod¬
ucts of our farms.
Not only ,are
the American people buying more

that

from

new

single bulwark of
situation today

who is affected first and most di¬

finally developed the

to

all

Heart¬

on

our

income

farm

is the fact that

re¬

youth. But
worry
about

our

to

a

to

seem

we

did in

we

don't

It

than

later

member
we

The strongest

the

abroad,

are.

been
a
sharp decline in farm
farmers, lumped into agricultural
prices since the height of the
income statistics, that distort the
'Korean War, there has not been
true picture.
The real truth is a
corresponding drop in per cap¬
that incomes of commercial farm¬
ita income of farmers.
Through
ers—farmers who operate familyincreased efficiency, most farm¬
size units such as predominate in
ers have been able to offset to a
this area
compare favorably
considerable extent the effects of

in agriculture. That is the parity
ratio which measures prices re¬

me

don't have

we

either.

that

income

—

sometimes cited by people seeking
to create a statistical depression

Let

and

little that the farmers

level

eral

It

Undoubtedly,
some
of
these
marketing services cost too much

small

so

difficulty, regardless of the

tion

recognize

trend in food prep¬
distribution
builds

are

of the

who operate them are in constant

ment

farmers

But

from

been

Nevertheless,
new

farm

squeeze on

their Korean War peaks—true.

at

a

production

costs have been

provided by the processor, rather
than
the
farmer, the processor
rightfully collects for them.
that this

a

pocketbooks?
Let's study that one for a mo¬
ment.
We don't have farm prices

you

Because

of all kinds.

cost money.

of

more

mean

reached
War, while

high

voutly thankful, as I know allqf

good year
a bad one by what he has left
his pocket after the crops and
a

titude of "built-in maid services"

with

record

whether he has had

States,

All

down about one-fourth

during the Korean
operating
costs
generally have
dropped very little. Doesn't this

of

food and fiber that goes to market
each year. Many of the other 'S V2

They

very

Farm

future?

to all of these

majority

haps, is the fact that housewives
are demanding and getting a mul¬

more

farmers

the

about

what

but

the

creased

There are, of course,

along

for

immediate
are

some

foods.

pessimists,

from

that

sharing as fully as I would like in
unprecedented national pros¬
perity. The postwar adjustments
which were quick and relatively

the

prices

overwhelming

parity

net

painless for some segments of the
economy have been more difficult

per

The individual farmer determines

he was.

as

words

me

of

verge

selling produce
road-side mar¬

perience
in
through his
ket.

teeter¬

was

ing precariously on the
bankruptcy.
I wasn't

living?

An

is

presented.

*

the

comfortable and pleasur¬

more

able

is

And

rate.

qverage

an

$22,000

American farmers would say "no"

only part of the total picture

if

for

it

really counts.

income.

net

omy

about

Yet
supported

is

conclusion

both conclusions can be

mine

equity of
farm family.
The
comparable figure for the
average non-farm family is about
$5,000 less.
Now all of this may be true, say
up

jirst page

The Nation's Farm Problem
Neither

with

Thursday, September 8, 1955

...

solutions

serious

problems, we
the cooperation of cot¬

industry

members of
times.
Farmers

representatives
the

Congress

as

a

at

and

,

group

,

are

in

this

country,

partment of Agriculture scientists
are
working
on
two projects,
either one of which could simi¬

all

larly revolutionize the marketing
of milk.
A frozen, concentrated

not

whole milk and a stable, palatable

"•

■

industry

building
vast
new
markets
through the development of frozen
concentrated juices.
Today * De¬

Volume 182

Number 5462

...

The Commercial and Financial Chronicle

(987)

erals conclusions^, and*-the -high**
whole milk powder have example of what can be done to
developed to a point where make more people aware of the : lights of a security offering, and
fails to study his available data
values of pork,
appear that either may fine, nutritional
be perfected within a relatively products.
carefully, can possibly be success¬
short time. Such a process would
As you know, hogs are coming ful over the longer term if he
reduce costs and tap broad new to market now in large numbers, i intendsto,"sell value." ;But if-you *
markets.
Prices are well below the early are sold on the outlook for a cer¬
Every farmer knows there are summer peak and they will prob-^ tain company, if you can see that
dozens of problems in his own op¬
ably move lower as marketings- on a competitive basis its securi¬

19

dried

been

it

would

eration which research and educa¬

increase.

tion

pigs

This

9%

spring,

help to solve. Potential
production in this country is
reduced by some 10% each year
through
livestock
diseases
and

year ago.

parasites. Rodents and insects de¬
stroy annually enough grain to

more

ties

attractively
priced, and
you
have
done
a
thorough job of getting the facts
and analyzing them to your own
satisfaction, then you are ready to
go out and sell.

all black. The supply

can

meat

feed

million

10

hogs.

Approxi¬

mately one-fourth of our fruit and
vegetable crop each year is either
lost in the fields

or

in

marketing

channels.

now

We

what the limitations may be?
have an atom-powered sub¬

marine.
ered

Why not

tractor

atom-pow¬
day?
Atomic

an

some

science gives promise

much

us

than

more

of teaching
know to¬

we

day about effective use of fertil¬
izers.

scientists believe the

Some

atomic age will also bring a cheap
method of desalting seawater so
that

Fall

expected to be
This

deserts

our

may

one

day

bloom.
The

importance of research in
improving quality of farm prod¬
ucts
cannot
be overemphasized.
Here in this

up

a

year

are

also

sharply over a

situation, however, is not
of pork for

consumption in 1955 is estimated
66 Y2
pounds per person, or
equal to the average rate
consumed 71 pounds

we

of pork per
With

capita.
feed

abundant

available

supplies
prices, the
likely to re¬

lower

at

corn-hog ratio seems
main

In 1951

favorable

efficient

for

erators. Attractive pork

op¬

prices for

will help to move mar¬

consumers

ketings into consumption.
Beginning this year, I believe
that
government
price support

will start working to¬

programs

balanced

farm

pro¬

flexible

better

ward

price

sup¬

The

duction.

port system approved by the 83rd
Congress becomes partly effective
this

as ;

year's

to

move

crops

should

It

be

pointed out, how¬

that the new program gets
underway
with
some
serious
ever,

great corn-hog coun¬
handicaps. The government today
try, there is special interest in the
has more than $7 billion invested
development of meat-type hogs.
in farm commodities, virtually all
Farmers
must adopt a cardinal
of which were accumulated under
rule of successful promotion and
the old program of rigid supports.
meet
consumer
demands.
The
housewife

and

consumers

gener¬

It will take time and serious effort

If you are selling

corporate se¬
curities it is my belief that you
should try and cultivate an inter¬
est

in, seeking out all the informa¬
you
can
acquire regarding
the practical approach to security
analysis. I am also certain that
tion

successful investment men
will tell you that they are con¬
stantly learning something that is
new and helpful to them day after
day. That is one of the fascinating
phases of the investment business.
many

It is

a

you

to

business that will not allow

stagnate—you must learn
constantly.

more

I think what I

am trying to con¬
here this week is best illus¬

vey

by

of

one

when

brief

a

trying

was

clientele and I

of

recollection

earlier

my

I

was

experiences
to build a

somewhat less

experienced than today.
I was
having quite a time of it and al¬
though the firm I was with had
one
good analyst and the data
that was given to me was fairly
complete, I did not seem to be

to dispose of these crushing stocks able to accumulate sufficient en¬
strongly that
thusiasm for most of the securities
and relieve the downward pres¬
they prefer and will buy the pork
sure which
they exert uopn the we were offering to be able to
products of meat-type hogs.
If
convince others of their worth.
they can't get the kind of pork general level of farm prices.
Then one day I obtained a re¬
In
this
discussion
with
you
they want — and sometimes they
can't
they will turn to beef, today, I have attempted to point port on a substantial mid-western
lamb, poultry or some other high up some of the problems confront¬ company that had been prepared
ing agriculture. As I see it, there by the statistical department of a
protein food.
large and successful investment
Great though the progress has are weak spots in our agricul¬
tural economy but fundamentally
firm.
This report had required
been in recent years toward in¬
it
is sound
and healthy.
There several weeks in its preparation,
creasing production of ineat-type
will
be
bumps along the road it was one of the most carefully
hogs, even more emphasis upon
this
development
is
urgently ahead, just as there have been prepared analyses I have ever
needed. And along with this, we in the past. But there will be read. When I laid down I said to
myself, "I can sell this stock." No
need to emphasize pork promo¬ smooth stretches too. I am fully
tion among consumers. The recent confident that, with the help of longer did I have doubts about
Pork
Promotion
Conference in God, we shall reach the objective the future of this company, I
of
all of us—a prosperous, ex¬ knew about its plans, its excellent
Chicago, in which the Department
research staff, its growth-minded
of Agriculture cooperated, is an panding and free agriculture.
management, its sound finances,
and I had a comparison of this
company's common stock right
—

there before
with

the

other
same

me

it stacked up

as

companies

leading

industry,

on

in

share

a

By JOHN DUTTON

Amid

juest

the

clamor

constant

profits

trading

for

When

dealers

nvestment

clients alike, there are some

who

primarily to "value" as a
yardstick when they select a se¬
curity for investment. Prices move
[00k

points up¬
downward on any busi¬

or

of

a

few

day have taken place in the
markets for securities throughout
ness

and down, often due primarily The Value
Approach Can Bej Sold
reasons
only
remotely conTo Your Customers
ledted with intrinsic values. Yet,
If you will constantly identify
in the long run, a carefully selected
to

stock that represents the

ownership

of

a

managed,

well

reward

will

business

growing

yourself with the "value approach"
in your conversations with your
customers and prospects, and also

I think
you will find that they will also
increase
accept the general idea as one that
dividend payout.
is
most
readily understood and
If you will accept this general
appreciated. But there is more to
premise, and I believe that the
it than just telling your customers
financial history of many success¬
that you are interested in helping
ful companies will back up the
eventual
in market value and in

those who own it with an

that

statement

will

value
believe
basis
your
man,

assert

that

for

"in

you

work as

a

find some
appraisal of

can

making an

dealer, or a sales¬

oBf investment securities.

know of no other
more

the long run
itself," I also

subject

to

I

business that is

the

whims

of

changing markets, of public psy¬
chology, and of the shifting tides
Df buyer opinion, than the invest¬
ment securities business.
is
to

its

a

business

emotional

For this

in

resent

also

tomers




happened to them
appoint¬

ment something

to

me.

I

obtained

and orders, and I made
friends with that stock.
It has
been many years ago but some of
ments,

people I am sure still own

it

and

the "value approach"

the basis for my

was

that
original in¬

terest in this, investment has now

by an apprecia¬
1000%
in market

been

vindicated

tion

of

over

and

selling will

not suffice.
I

am

not

salesman

who

believes

that

he

should "sell value" should become

top flight security analyst.
am

saying

that

no

flashed complacently accepts

man

a

paradoxical
compa¬

underwriting profit margins of,
respectively,
9.3%
and
12.3%.
Now, any period in which the in¬

ten

dustry is able to show a £3% un¬
derwriting profit margin may be
considered

securities

Stuart Sees. Opens
enganging in
from offices

Officers

are

a

Corporation is

securities business

at 550 Fifth Avenue.

Sidney

Lott,

Presi¬

dent; Frank Sales, Vice-President
But and Rose Lott
.Secretary-Treas¬
who urer. Mr. Lott was formerly with

few gen¬ Ira Haupt & Co.

com¬

to

be

by

But

damage, and,
is not writ¬
insurance companies.

coverage

our

types

some

covered

property are
flood
damage,
motor vehicles under

principally

the comprehensive clause that ap¬

well below half that

companies

But if

take

we

figure.

and

in

many

company losses in
this category are considered to be
not too

of

in

are

the

among

more

actively traded issues, we get a
decidedly different showing.
Eighteen fire companies, including
the

of

some

along with
ary,

largest in the field,
that are second¬

some

regards size,

as

half of 1955 showed

in

an

the

One

do

the

of the

this

not

be

underwriting profit margin
for the group in this year's half
was
only 2.6%, compared with

of

9.3% for the representative group

most

of about 125

affiliates.

and

not appear

factors.

as

a

A

where

combined

America
fire

one

of this is

example

good

in the North

unit

ratio

compa¬

companies,
showed a

of

crop

areas

cover¬

have been

crops

tions

favorable

as

year

a

jfire companies

Of course,

where

a

as was 1954.
fleet's opera¬

fortified by the presence

are

profitably run casualty af¬
filiate, some of the poor results of
a

the

fire

year

than the fire

group,

nies.

is

season for them is still young.
It is therefore possible that 1955

The

First, the multiple-line casualty
companies had a much better half,

storm.

the

will

for the

in several

wind

important

more

connection

ing profit of but $160,000 approxi¬
mately, compared with some $25,041,000 in the like period of 1954.

companies, both fire
casualty. The disparity lies

of

and losses to

age;

properties

cover

risk

heavy, apart from flood damage.
And, while it is hoped that no
further hurricanes will develop,

first

underwrit¬

But the insurance

severe.

against

which

automobile policies;

insurance

representative
group of fire companies the stocks
a

of

against

pears

a

hurricanes

flood

was

mostly, this

decidedly fa¬
vorable one; 9% profit margins do
not occur often, and an average
over
a
long period would show

units can be offset; and
large fleets do have casualty
But

for

as

the

of

does

it

now

profitable
multiple-line fire

to be

a very

writers.

Marketwise, there
question

to

as

can

current

be some
values.

Yields, particularly on the high
grades,
are
meager,
and
even
poorer than those of many highgrade industrials whose growth

105.5%; the
the casualty potentials are at least as promis¬
affiliates was 91.4%.
ing. This is not to disparage fire
Secondly, the industry showing insurance stocks as long-term in¬
of 9.3% is influenced by the fact vestments; they are par excellence
But might not a
that a large number of small units for this need.
consolidation period make for a
among the 125 companies are not
other

97.9%,

while

multiple-line writers as are the
18 fire companies under consid¬
eration. In other words, there are
those

as

healthier market?

Manning Investments and

specialist writers, such

numerous

write

that

(Special to The Financial Chronicle)

surety bonds, or those that
confine their writings to a select
of

shares

specialty writers
to

the

they

general

are, are

many

are

of

these

not available

investors,

if

or,

not widely held, and

therefore cannot be considered

constituting
so

far

as

a

as

representative group
run-of-the-mill

the

DENVER, Colo.— Manning In¬
vestment & Underwriters Inc. has

of risks.

The

Underwriters Inc.

and

only fidelity

and

in¬

been

West
R.

offices

formed with

Officers

Colfax.

President;

Manning,

of

Investment

Service

But

their

Thus, the showing of the mul¬
companies for the
first half of this year cannot be
tiple-line fire
said

to

be

reason

for commenda¬

Customarily, of
half

of

course,

the

the calendar year

business,

with Straus,
39

South

bers

of our* winter

winter

and

the

need

to

of

La

the

west Stock

''

y

Blosser & McDowell,
Salle Street, mem¬

New York

and

Mid¬

Exchanges.
f

is

falls in that period, and of

Co.

(Special to The Financial Chronicle)

Opens Inv. Office

the fire insur¬
primarily because

major portion

B.

CHICAGO, 111.—Edward P. K.
Hade, Jr. has become affiliated

the poorer half in
ance

M.

With Straus, Blosser

profit-margin results do affect the
industry showing and tend to dis¬
tort it.

James

■'

•

concerned.

7340

at

are

Parkhurst, Secretary-Treasury;
Peter Nelson, Vice-President. Mr.
Manning was formerly an officer
•

is

vestor

course

is

engaging in a
business from
offices

Inc.

approxi¬

from

Connie and Diane.

trophies

Old

—

of

arising

mately
90.7%,
compared
with
87.7% in the first half of 1954, or,

Line Educators Investment Co. of

La.

combined loss

a

ratio

expense

season

Louisiana

applicable to the insurance

Of course, the major part of the
losses
caused
by
these
catas-

and

the

(Special to The Financial Chronicle)

NATCHITOCHES,

But this year what would normally
the more favorable

be considered

panies

first

Old Line Educators Inv.

Stuart Securities

advocating that every

second half will embrace the losses

somewhat

a

showing. A large group of

tion.

value.

If

the situations you are

I

is

and

prospects for an appoint¬

luctant

and

report

here. Officers are J. Ray Williams,
You must President; Harvey Broyles, Viceyou believe President; A. L. Huntington, Jr.,
best serve your cus¬ Secretary; and Jim W. Crofford,
build your business Treasurer.

it.

along these lines, then superficial
knowledge and investigagtion of

sensitive

dramatic Itopact

that

of my heretofore re¬

values."

at

that you can

public reaction that

so

"good

work

presents

telephone

them to find investments that rep¬

a

that is

letters to them,

your

some

the

to

reading

these

the country.

ap

common

went

called

fluctuations
ward

I

after

and from coast to coast in the matter
of seconds when even the minor

among
and
their

fire losses than the milder months.

group

basis.

Sell Values!

operate heating plants bring more

writings, reported

Salesman

ally have indicated

Securities Salesman's Corner

earn¬

accounting for a substantial
proportion of the industry's total

Combination

trated

market.

Analyst

;

about

since the end of the war.

preliminary

ings figures of the fire-casualty
insurance companies for the first
half of 1955 now being released

nies
The

at

and 1952

Perhaps the most important re¬
search story of all lies ahead of
us.
We are just beginning to ex¬
plore the possibilities of "atoms
for agriculture" and who shall say

saved
than
farrowings

were

earlier.

This Week—-Insurance Stocks
A look at the

be

to

appear

By AKTHUR B. WALLACE:

Y.—Antoinette
engaging in a secu¬

SYRACUSE, N.
C.

Brisk

is

rities business from offices at 3009

West

Genesee

Street.

20

The Commercial and Financial Chronicle

(988)

Continued

from

libel laws

our

13

page

Thursday, September 8, 1955

...

have developed

we

the doctrine of "fair comment"

Our

Reporter

=====

on

public

Governments

By JOHN T. CHIPPENDALE, JR.

'

Some Legal and Other
Problems in Proxy

======

government market continues to adjust its position to the
situation, which is bringing about results in the form
higher levels of interest rates. Short-term rates appear to be
bearing the brunt of recent developments, as witnessed b,y the in¬
creases in
rates of Treasury bills, banker acceptances and com¬
mercial paper.
Near-term money, according to advices, is not
plentiful and this situation is not expected to improve in the near
future. However the uptrend in yield for the shortest Treasury
obligations is bringing some outside money into these securities.
The

tight

money

of

The

distant government securities are still backing

more

and

filling within the established trading ranges, and in spite of thehardening of interest rates have given a fairly good account of
themselves. To be sure, the market for these securities is still
narrow, highly professional
from time-to-time there are

and readily moved up or down, but
reports of scattered investment buy¬

ing in these obligations.

posing

amendments

the fall of the year with
of not a few followers of
the government market that the pressure will be increased before
there is a change in the program. The interest raising operation
ot the monetary authorities is bearing fruit beyond any question,
because the cost of borrowing money is still going up, with almost
weekly increases in the various rates for obtaining funds being
reported. How much further the interest rate raising operation
will be carried is pretty much a matter of conjecture, in spite of
the Opinions which are being heard in some quarters of the
financial district.

ought to

Solicitation

The

heart

The

proxy.

monetary authorities have been in favor of the rediscount
rate going up and the recent increases in this rate to 2^4% by
various Federal Reserve Banks appears to be ample evidence oL
the policy which is currently being carried out.
A uniform re¬
discount rate of 214% is expected to be merely a question of time.
At the same time, this raising of the Central Bank rate makes
it seem more likely that the "prime bank rate" will be in¬
creased

the not too distant

in

interest rate pattern is going to be one of "restraint"
extended period of time, the "prime bank rate" as well as

all

other

levels.

have

to higher
government
non-Treasury obligations, namely corporates

borrowing

rates

will

to

ahead

move

This would also bring about higher yields for

securities

well

as

as

and tax free issues.

(2)

not

to

is

There

his

client.

body

of

portant
S.E.C.

doubt

but

what

of which

continual

operations.

not inclined

There is

borrowing is

no

uous

point of

for the monetary authorities but,
at the same time, there is more than a passing amount of opinion
that the cure for what has developed in the loaning field does not
lie alone in higher interest rates.
a

concern

It is reported that a certain amount of

loans, not considered to
figure, have been postponed by the increased
cost of getting these funds. On the ether hand, with taxes at high
levels and business still affording good opportunities to make
profits, a minor increase in the interest rates has not yet deterred
sizable borrowings among those who have use for the money.
be

an

A

lem

important

direct approach

more

is

what

is

needed

specialists, but such

in

to the heart of the borrowing prob¬
the opinion of many money market

device

a

or

devices

not

are

now

dis¬

the

at

posal of the monetary authorities. Also, it is not expected that
anything of such a nature will be forthcoming. Accordingly, it is
/the

of certain money market followers that the interest
raising operation will not be carried a great deal further, and
if there should be any signs of the business picture being on the
view

rate

sic^e, there will be

policy from

one

an immediate change in monetary
of "restraint" to one of "ease."

Continued Demand for Short-Term Paper
new

announced

in

financing by the Treasury is expected to be

money

the

future

near

and

short-term

obligations, most

likely tax-anticipation issues, are being looked for in the financial
district. Corporations as in the past are looked upon again to be
the largest takers of such securities.
The demand for presently
outstanding near-term governments is still good, and the upward
trend

in

yields of these securities continues to attract funds that

seeking temporary havens. It is indicated that money which
has been in longer-term commitments is being put to work in
are

Treasury bills and selected certificates and notes.

shareholders,
was a

proxies

for

revoke

to

solicit

Cosmopolitan Inv. Corp.

Board

(Special to The Financial Chronicle)

BATON

ROUGE, La.

the

President of

has

at

men's

in

announced

2907
a

formed

Laurel

—

with

Street

to

securities business.

in

offices
engage

Officers

are

of

Raffel
the

Club

Executive

of

&

a

Prejean,

Secretary-

Treasurer.

1902

of

has

meeting of the
will

Board

Room

Helen

Philadelphia,

that

Board

Sept. 12, 1955 at 5:15

A. Greco, President; Eu¬
Bologna, Vice-President, and

—

Company,

Investment Wo¬

Cyrus

S.

vast

be

held

p.m.

Dolphin

on

in the
&

Fidelity-Philadelphia

Co.,
Trust

Building.

R. J. Mullen

Opens

With

(Special to The Financial Chronicle)

conducting

a

business from offices at

aafftrsrrebtr




securities
33

Oak-

Skyline Sees.

(Special to The Financial Chronicle)

SALEM, Mass.—Robert J. Mul¬
is

this

V;.'.:VU

a

lic.

opinions
jects.

a

that statements

on

If

conference

press

before

the

annual

shareholders
tion

nounced it

the

was

about

the

way

are

the

of

to

being

express

certain fundamental issues that
us.

late

mately

ing,

it

and

before

is

Illinois in

Avery et al., which attacked the
on

off

paired

the

voting

guaranteed

cut

interest.

the

If

the

answers

answers

get

any

press—as

clash

between

attempting to effectuate.
test

laid

down

when

only

com¬

there

is

by

rele-?

some

that speech may

vance:

Per¬

right

of

cumulative
all

to

share¬

holders of Illinois corporations by
the state constitution.
The court
acted

the

on

morning of April 15,

declared

and

tions

that staggered

violated

the

elec¬

constitutional

provision.
Cumulative

the

policy of fair and com¬
disclosure the Commission

Mr. Justice Holmes has

of electing di¬
ground that it im¬

valuable

considers

old

only

or

That issue

the Supreme Court of
the case of Wolf son v.

the

national

the

DENVER, Colo.—John
is

S. Sallak

now affiliated with
Skyline Se¬
curities Incorporated 1719 Walton
Street.

en¬

nine

of

system

answer

the

haps

an¬

board

to be elected

was

one-third of the board.
was

approxi¬

knew whether the

Montgomery

directors

rectors

contestant

plete
is

14,

one week before the meet¬

no one

tire

April

as

staggered

to

constitutional right of free speech

at

making its bid for
the

■

will consider false and misleading.
Here it seems to me is a rather

control and went on to make some
remarks

meeting could turn into

unless agreement could be reached

confronted

they are
bopnd to—he runs the risk of say¬
ing
something
the
Commission

solicita¬

opposition

the

very confusing and hectic affair

refuse
public

publicity in the

eight months
meeting
of

constituted

because

*:

•

of

laws.

infinitude of sub¬

an

they

what

proxy

the

made

•

They

news.

asked

and

fundamental

position

that
a

for the next.

as

;'v.■/'a'

questions and his

regula¬

has taken

I

proxy

continually

are

from

direct communi¬

Commission

of

^

questions

variety of activities under

The

well

.'

They

where

by

as

questioned

later

writing to shareholders,

not

generation

mediately become

prepare

vein,

and

common

As April 22, the date of the an¬
nual meeting neared, it became
evident to counsel on each side

al¬

process,

eagerly sought after by the press,
by financial services, by share¬
holders and by the curious pub¬

this decision and

same

had

they

Due

People who engage in proxy
contests in major corporations im¬

the term "solicitation."

But

whether

rectors
lative
must

to

were

voting

Voting

three
be

nine

or

elected,
to

was

under Illinois

apply,

law.

lative

voting, it

one

as

cumu¬

be said

can

it

Without

going into the mechanics of
no

di¬

cumu¬

that

cumulate his votes in¬

can

be curbed

telligently unless he knows at the

clear

time he votes

a

and

present danger of the commission

had been managed that were, of a
wrong that the legislature has
not entirely complimentary!. Dur¬
a
right
to
prevent.
Here
the
ing the months that followed the)
"wrong"' would be false or mis¬
Commission,
at
administrative
leading statements that are made
levels, announced ,a variety
to induce the giving of a proxy.
rules to the participants, concern¬
ing the conduct of press. confer¬ ; If the Holmes test is applied one
seriously question whether
ences, the granting of. private in-, may
terviews to reporters, the repub¬ the Commission is on solid con¬
lication of articles that had' ap¬ stitutional ground when it claims
jurisdiction over statements at a
peared in national

pany

shares

many

approximately how7
present and val¬

are

idly voting at the meeting. This
fact was an especially important
consideration

to

the

who

committees

had

two

proxy

millions

of

.

financial

by

magazines and
(written often

services

wholly independent of
contesting groups), the inser¬

persons

the

tions

of

advertisements

in

the

daily press, speeches to groups of
professional analysts and the like.
of

All

pretty

in

these

activities,

safely

say,

solicitation

but

one

by

the

can't

you

can

considered

are

Com¬

find

ferences

and

speeches

by

sometimes

con¬

even

in

the Commissioners.
if you violate them

Presumably,

conference

press

months

ing

votes

to

cast.

how

But

sion

can

you

straints

like

the

that

as

constitutional system

are

to

the

to

act

criminal

the

on

laws

one

belief

that

spelled out in such

bind

a

way

give reasonable warning of

offense.

How

can

a

be

properly advised by
ney or how can a court
the

offense

tion

which

itself

it

is

if

person

an

attor¬

pass upon

the

claimed

in

in¬

fringed is not in writing and not

every

remark

running

a

Commission

a

a

And

re¬

for

by-laws of the

they

corpora¬

be

to

were

Inspec¬
they to
ap¬

by the chairman of
corporation—a prospect not

tirely
tion

is

adminis¬

prior

speaking of

pointed

satisfactory to

the

the
en¬

opposi¬

group.

After

lengthy conferences be¬
opposing counsel the fol¬

tween

lowing

procedures
embodied

impromptu, off-

upon

made

agreed

were

stipulation.

at

every

office

corporate

contest.

proxy

A proxy con¬

large corporation is much

political election. There

exaggerated

denunciations

of

are

the

and

in

signed

a

(1) Three

prominent
Chicago
reputations and
objectivity were beyond reproach
were* selected as Inspectors of
,

attorneys

whose

Election.

opposition, lofty exaltation of one¬
self, and an ever-present tendency

der the cumulative

to

at

state

terms

a

black

us

murky
The

to

controversial

of

most of

regula¬
was

questions aside, I

the

blue plate luncheon by every per¬
son

weeks.

tors of Election who Were

said

at

Commis¬

yes.

on

the-cuff

and

tion

The

many votes
election until

passed upon by the Inspectors ofElection—all of which might take>

proxies

obtain

on an impossible
task in placing

trative

lots

an

and

to

date?

how

actually counted by theuntil challenged bal¬
challenged proxies are

are

The

that

taking

they

tellers

be?

Constitutional
believe

test in

our

entitled

date.

A court, I suggest,
might well disagree.
says

der
is

seven

accurately
to be cast in

reasonably

later

a

and
record

tell
are

statements

calculated

such

;eight
meet¬

the

before

such

Are

made
annual

the

shareholders

of

can go to jail.
Here, it would seem, is a seri¬
ous question of due
process.
Un¬
you

before

months

one

that effect in its regula¬
These rules are laid down

to

correspondence, in office

him

len

the

The

accommodation

such

As

but by day-to-day interpre¬
tations
by its staff has brought

a

for

news

upon

wholly believed.

of the proxy

on

tion,

tions.

Meeting

gene

Louis

to

was

contro¬

accurate

Become "News"

for that eventuality.

in

•

if

as

People in Proxy Contests

proxies and that

letter

Commission,

proxy

PHILADELPHIA, Pa.
Schnetke

Cosmo¬
politan National Investment Corp.
been

formal

there has been

word

.

;.

request not to sign any
the* management and
any
that had
been

earlier

wholly

opinions

be

that it could unless it was to
ignore something basic in men.

suggest to the Commission,

contestants

informa¬

intended

and

will

way

Com¬

evolving they are being

evolved.

would

contained

himself

made

law, with its genius for flexibility,
developed, therefore, in the only

grad¬

difficulty is that while the
are

ready

The court found that the

signed.

defendant
to

which

be

which

versial, not

evolution."

of

administered

the

financial

false

certain

mission,

1

The

and preparing the way for its suc¬
cess.
In Okin the communication
to

will

expressed

elections

high, state¬

theory to life is sorely needed, in
my opinion, in the administration

solicitation

in

ments

not

as

spirits running

*

uncertain

The

ending

pian

with

the

of

has

all know that

in public matters such

results with

types of problems.

state

a

rules

in

if it

proxy

a

certain

Human nature

we

Some

in

im¬

antecede

can

the handling

Commission

necessity.

policy on the wnole subject is still

lays the ground work for the later
request and is a step in a continu-

Building

yet to go that far in their interest raising
doubt but what the current pattern of

certain

small

a

most

is embodied

request for

>

cation

are

also

the

So¬

drawn

reached

pub¬

statements

being what it is,

formal

no

proxy

mission thinking and Commission

is

others

that be

ual

Okin, 132 F. 2d 784 (C.A.
which holds in substance

v.

solicitation

upping'-'cf interest

a

is

law

contain

in

the

cases

proxy.

There

case

American

of

American

be bored to death by

and

of sheer

specifically
for the problems of fair disclosure
arising
out
of
proxy
contests.

These, then, are the rules the
lawyer must follow in advising

the way

Prosperity Applecart

a

been

have

the law

the

political matters developed out

on

Feb. 9, 1955 in

on

the

to

rules

However,

al¬

The doctrine of "fair comment"

of the deficien¬

rules that

requirements

a

not

are

by con¬
testants written by their lawyers
and reading like a marine insur¬
ance policy.

Chairman, conscious

the

"The

if

speeches

un¬

an

into

lic is not to

ciety of Corporate Secretaries:

sonably calculated to result in the'
procurement of

introduced

rule

good

some

address

an

(1)

revoke

to

or

in

that

statements

on

per¬

strict

solicitation

a

^

law, that
a

mentioned, said

proxy, or (3) the furnishing of a
form of proxy to security share¬
holders under circumstances rea¬

rales will eventually have an effect upon the economic pattern of
the country, put it is believed in some quarters that the powers

no

execute

is

present

cies

the

of

request to execute

any

the

doubt of

no

any request for a proxy whether
or not accompanied by a form of

his

Won't Upset

The

rule

present

future.

the

an

;

the

the term solicitation includes

tion,
If

for

at

and
effectuates the policy of the Act.

Commission, X-14A-1, states that

formal

The

of

be
rule

written

problem is
what constitutes solicitation of a

that

Expected

orally

be treated in the new rules.

2, 1943)

Prime Bank and Other Rate Rises

issued

It is not enough that something

What Constitutes Proxy

which

pretty, not always phrased
legalese, and not always
100% objective.
Something akin
to this should, in my opinion, be

Contests

but

meeting with the staff?

or

The money markets are going into
the pressure still on, and it is the belief

codified

proxy

personalities,

ways

in

rules, and it may be that some of
the points I am about to make will

proxy,

Further Pressure Looked For

its

to

mits

know

American

not

white

in

when

(2)

Ballots would be cast

the

and

all

proxies

possession

people

journed

(3)
are

used

electioneering and
easily taken in by it. In

(un¬

voting system)
meeting of April 22, 1955,

they often lie in

gray.

this type of

are

and

issues

The

delivered

of the

into

Inspectors.

meeting would be ad¬

for

a

period

of

three

weeks during which time the bal¬
lots

and

proxies

would

be

ex-

Volume

182

Number

5462

...

The Commercial and Financial Chronicle

(989)
amined,

challenges

ruled upon,
(4)

;

and

made

A set of rules to determine

the validity of proxies
These

upon
'Vlil
"

*

n

V*

agreed

was

drafted

were

X AAV.W V

V

after

v*4.v**vvvt

_

study
states

the

laws of several
after conferring with

of

and

who

counsel

other

large

(5)

It

had

cbnvene

contests.

meeting
April

on

I feel sure, had the conviction that

l

•

I

4lv/A/4

tTAmr

When

''

After

it

was

announcement

for

the

how

first

recumulate
a

their

ballot if

new

votes

,.

Each

certainty

.

firm

legal

is

well

ground

porate law that
the

been

closed.
rules

validity of

of

for

the

developed.

can

Since

him?

be¬

were

marker

ever

in

the

time

detail.

ics

to

discuss

the

(1)

etc.

and

record

the

(2)

in

rules

the

(3)

Proxies

signatures,

executed

by

one

to

prive

the proxy only if a
of attorney accompanied it

accented

we

power

except that where

we

(4)

Proxies

and

guardian,

pledgee

signed

by

executor

an

without proof of death
out submitting letters

(5)

the

that he

and with¬

she

or

the

name

there

of

was

Where

tees
•;

(7)

We

signatures
trust

than two trus¬

more

had

special
and

for

rules

for

conser¬

vators,

receivers,
partnerships,
pledgees, labor unions, fraternal
and

units.

disputes

Even

then

over some of

remember

these.

a

(8)

I

Proxies

presented
pi tkclllt?U

companies

problems
one-third

can

-*

are

the

since
of

bv

bro-

name

and

trust

imnortant
lmpurldni

approximately

the

6,700,000 shares

Company

were

(9)
■

regis¬

so

A final rule dealt with the
>,

.

situation
holder
often

both

some

the

in

sends
to

dated,

where

same

several

groups.

snare-

proxies

Some

undated

are

Tt
11

quently became necessary to
amine postmarks.
case

where

I

can

two

postmarks

that

are
frp
lre"

ex-

remember

envelopes
were

one

.

apart

during

which

time"

something had apparently induced




the

are

gas

Hugoton

at

1.5

field,

trillion

outgrowth of

convinced that the SEC should have

judging of

cubic

additional

an

feet

com-

in

estimated
feet

while

trillion

7.5

cubic

dedicated

are

The

largely

are

under

pur-

Leasehold

contracts.

time

Phillips Petroleum in a discovery
well
in
the
Savannah
Creek Area in Southern
Alberta

Iowa, which

South

popula-

a

reserves,

Last
ox
of

the Svstem

vear

cost

gas

of

For

10.4

the

bond,

taining
cubic

no

proxy

our

share

months'

selective

Free Investment Clinics

stock

market

and

con-

stantly changing economic conditions, there is a need for re-ex-

amining all securities

held,

now

vestment firm of Edwards & Han199 North Franklin Street,
members of the New York Stock

There will be no. charge or obligation for participating in an In-

Exchangei ,hav?
ni

service that

scheduIed

t.he

.

opening of frpp Tnx/Actmcmt fMiniPc
free Investment Clinics

nnpninrr

at

each

of

their

four

offices

vestment

Clinic.
we

It

are

is

a

public

happy to

per-

„

f

in

01%

average
average

Hempstead,

Mr.

June

$3.23

per

revenues collected

$2.71

for

Power

set

for

application

half

per

the

year,

of

Edwards,
-™.

&

partner
—

in

Four With B. C. Morton
(Special to The Financial Chronicle)

Ed-

T

Hardy,

u-

states:

"Our

u~~

--

In-

1

"

1955.
The

counselors

will

prepare

a

?el0w) although the equity ratio
c°nsIderaMy below the

56% of

Funded

Pfd. &

"We

are

we

in

company

(Special lo The Financial Chronicle)

DFNVFR
U

A

Colo

i

_

ff

L
f

J

Bovee

TVT

T^o'tn

has joined the staff of M. Keith
Singer, Denver Club Building.

a

very

<ei

Common stock E
(3 654 000

qT

$

MinoriiyTntee7t

3

"

it

shares!

mfi

snares)^106 J33
^.3

inn

*

While only about $12

.

*s. being
1956>

to

million

spent on construction
the company expects
$35

million

in

its

some
extend

pipeline

to

serve
the Duluth-Superior
and 64 other communities.

area

the

has

past

Out-

s*de financing will

in 1938 and

as

double those of 1951.
the

than

more

The

nancing.

Earnings this

gain for

12 months ended June 30

proximate

was

30%, which however, includes the
rate

increase.

should

year

$3.25

if

the

ap-

rate

in-

is authorized by the FPC

crease

in and
on
this basis, the stock at
12%.)
43 (range this year about 47-40)
company's period of returns a yield of 4.7%, with a
rapid;
expansion
may
be
ap- price-earnings ratio of 13.2. These
proaching an end with next year's ratios compare with the industry
program,
normal
growth should averages for integrated gas comstill
continue.
Last year
when panies of 4.2% and 15.9. Morenew gas from Permian Basin beover, some value
possibly as
came
available,
71
additional much as $5-$10 a share—might

volume

of

While

(The

sales

increase

was

the

—

274,000
Next

year

pects
35

an

management
increase in output

million

cubic

feet

ex-

of

to

distances.

advantage
coal

of

favorable for

oil

and

somewhat

natural
has .been

by

creases.

Off

at

over

narrowed

recent

cents

22.16

gas

in-

rate

industrial

peak

mcf

gas

is

fairly
close to the competitive price of
coal for large volume consumers
with plant sites near the Missouri
per

and

Mississippi. Nevertheless, the
company hopes to hold substantially all its industrial business.
Househeating saturation in the
company's principal market area

is

about

65%.

85

urbs
as

cents

for

fuel

ural

mcf

$1,

oil.

Gas

or

not

Minneapolis

sells
and

at

in

about

While

is

business

any
the

In

gas

retail

the

same

Northern

expected

tanker oil
alcn

Allen,

to

the

rv

Jr.,

board

Mr. Allen is
Allen & Com-

has

of

been

directors

senior

partner

is

also

chair-

of

man

the

boards of The
Colorado Fuel
and

Iron Cor-

poration,' the
Cincinnati,
Newport, and
Covington
Railway
Co.,
North Kansas
City DevelopCorn-

ment

and AlRanches,

pany

len

Charles

Allen,

Jr.

He is a director of American

to

Bosch

business.

Brill Motors Company, Colorado
and Wyoming Railway Company,
American Wire Fabrics Corpora-

Some

may come in Irom the
East, also, after pnmnloBnn of the
completion
oft****

Corporation,

Arma

ACF-

tion, and Polarus Steamship Comnnnv

pany.

Lawrence

Seaway.
The company has been
hopeful
of
obtaining a supply of gas from
Canada

and

earlier

With Lamson Bros.

contracted

(Special to The Financial Chronicle)

with Western Pipeline and Trans-

111. — Phillip
D.
with Lamson Bros.

CHICAGO,

Herrry^ is
^

d

now

^41

q0

West

members

vard

of

constructing

its

j^west

of

Jackson
the

Boule-

New York

Stock Exchanges.

_

With Eaton & Howard

own

pipe line from Southern

(Speciai to the financial chronicle)

£^b?r^

through the Williston
Basin> but in order to make this
feasible the company should have
a

of

pany,
New
York City. He

Inc.

competing fuels,
spread will probably slow down future growth of

T^.act

I

of Pepsi-Cola Company,

lose

narrower

househeating

All

Charles

Nat-

to

ian

elected

sub-

the

gas

<~harleS Allen Jr., Director

the

competing fuels
transported over long
However,
the
price

be

sys-

undeveloped

ex¬

natural gas, since
have

its

the
feet

acreage.
fL.

in

and

reserves

gas.

conditions

remain

area

day

a

industrial

general,

service

logically be assigned to
tern's 1.5 trillion cubic

population of

the

cluding firm
In

a

served with this gas.

were

^

holding the Clinics bewith

g

,

,

large

as

1,000-mile

feel

that

;

•

debt

be limited to
enjoyed extremely rapid growth, a srnall amount of debentures, it
current revenues
being ten times 1S e*Pectech with no equity fi-

plan

Joins M. K. Singer

Pie^e and impartial, confidential

cause

decade

Natural Gas may revive its earlier

corn-

ft|^onal anaIysis of these secur"

althnuV thl J3 -7® <S.®e

helowl

---

Edwards & Hanly a list of se¬
curities he owns. Our investment
to

_

19S** °f f™,30,

under

BOSTON Mass.-John R Daley,

~

arel

Montana, not far from the Alborder, are also important
Canitalkatinr,
e
T
on'

berta

9hs year,
of which to
spend

during the first six months

dedis-

subsidiary'in

approximat-

collected

was

rate

be

New

area

No

Commission

about
bond

preceding 12
hearing date
by the Federal

trillion

might

by Northern's nroducin?
the Big Coulee

this

the

Canada Gas Pipelines, but withJames D. Glunts, Edwin H. Leven- otd resuit. it now appears unvestment Clinics are open to any- thai and Isaac C. Wilbour have likely that any gas can be obbody who owns even one share joined the staff of B. C. Morton tamed from Canada during 19551956. It is possible that Northern
of stock' A11 he has t0 d0 is bring & Co., 131 State Street.
wards

l1/?

a

gas

in

;

ended

was

period.

increase

St.

Huntington,
Bay
Shore
and
Valley Stream from
Wednesday, Sept. 7 through Sat¬
urday, Sept. 10.

of

veloped

mcf.

per

and

yet been

for

Hanly Hold

perhaps

feet

ancon-

coveries

excluding
This compared with $2.39

them.

of

an
an

months

including

under

has

cents

12

income

net

per

bought

gassuddIvS
supply at

ns
its

30.

172,000 developed
605,000 undeveloped,

and

acres

househeating

Edwards &

has raised hopes that
Pincher Creek field

other

acre-

includes

communities with

the

tively removing from the SEC all regulatory control of
proxies.

over

tered.

hour

making to legislate

dogate its legislative function.

HEMPSTEAD, N. Y. —The in-

executed

by nominees for banks and

bore

freedoms, is

For ourselves, we believe that the public interest and
the interest of investors will be served best
by legisla¬

proxy for the

kers for stock in street

one

cardinal

%**■'

Smithsonian Institution

.

of

had

we

long discussion

a

who could execute

of

others

religious groups and govern¬

mental

pany's

244

Company

Northern Natural Gas some
ago shared with Husky Oil

and

.

behalf of banks and

on

companies

and

arch censor, and de¬

an

closely watched. This proposal is
its nurtured
baby. Views have been invited, no hearing.
There will and must be such a storm of
protect as will
make clear to the Commission the extreme
danger of its
tendency. '

majority had to sign.

a

become

The SEC must be

disagree¬

ment.

this

on

place
material. In combination
country, the rules of the numerous ex¬
changes, and the good sense of our people are a completely
adequate protection in this sphere.

was

evidence

was

The
good job of that without SEC

so

the laws of

signature unless

one

the

mess

whatever in

registered
of two trustees, 'we

required only

a

has

area

ing $8 million

stockholders

We

survivor.

(6) Where stock
in

valid

We required both joint ten¬
sign unless one indicated
proxy

no

way the wind blows, and
omniscience in unmasking a liar.

attempts to realize greater powers through rule
making instead of placing that issue squarely in the lap
of Congress where it
properly belongs.

to

the

on

proxy

its evasive

testamen¬
of administration.

or

ants

or

ad¬

or

considered

were

screening

material before it reaches
in controversy, deceit can be a

up

opponents

Many of the SEC's difficulties

void, but

as

a

indicating which

may not

one

conservator

treated

were

ministrator

tary

in

stockholder need

The

tion of about 2,700,000.

share

arrogate to itself the creation of laws is alarming.
It is
elementary American doctrine and law that Congress

but executed by someone as

trustee,
if

registered

clean

the

The Commission's abuse of rule

re¬

quired only proof of the relation¬
ship.
name

the

revolting.

close relative

a

signed for the shareholder

does

extend its powers, to

behalf of another. Here

on

of

We know

by Sept. 30, 1955.
To the SEC we
say forget it. You have already caused
the public much
grief. The sight of an administrative
body, during a Congressional recess, covertly attempting

stamps, "X" 's and scrawls.
person

Given

intended

proxy

ownership.

Use of facsimile

heritage.

our

The Commission invites views and comments

in

spelling,

between

as

serves

tana.

„

proposal goes on and on. It deals with mandatory
contents of proxy
material, preliminary solicitations, per¬
sons
making solicitation, etc., etc. Quite a dangerous
hodge podge.

They covered such top¬

Variations

Dakota.

chase

'

speech and freedom

regard

we

It

^wholesale in Kansas,
was ; Nebraska,
Minnesota and

which

group

systems

gas

05 communities at retail and
at

The

as:

initials,

tegrated

interference.

have gone on for at least
months and then might have
into the courts.
I wish I

moved

had

of

average stockholder can do

would
two

when

Commission has

count

proxy

freedom

rights which

the

determining

the

about

institution to

If it weren't for them

certain

am

Northern Natural Gas
Company,
with annual revenues of
$100 million, is one of the imporant in-

no

formally

proxies

.

.

constitutional amendment, nor are we aware of
any
law passed by our Congress which
requires the surrender
of these rights in whole or in
part to the SEC.

un¬

lieved the first of their kind
I

press,

1'

The

„

3

page

age

cor¬

time

any

have

polls

By OWEN ELY

Northern Natural Gas

mission must first be obtained.

the

in

shareholder

a

change his vote at
til

since

established

,

How

Utility Securities

world

how

directors it could elect. Al¬
though the "recumulation" pro¬
cedure was novel, it rested, I feel,
rule

Public

v\An^/\r»4

i

adopts the rule it becomes Mr. High Priest
and Prophet. In
proxy campaigns of listed companies it
passes upon letters, releases, advertisements, etc., etc., the
works. Before
using any of these the Commission's per¬

many

on

v»

copy to my fellow
stockholders unless the Commission first censored it.
If the SEC

cast

and

they chose.

mathematical

a

everyone

article dealing with a dissident
trying to unseat me, I could not send a

of the proxy committees made out
new ballots since each now knew

to

over

paper

time

shares

many

validly present at the meet¬
Shareholders were thereupon
be
given the opportunity to

to

n

„

The Unwanted Censor

were

ing.

all

Continued from

after ad¬
would re-

22,

such

know

too,

everyone

4

4-w\nw

rV-i ttaw

on

shareholders
would

tired—but

very

.

,.v'

.

.

#

May 13, at which time
the Inspectors would announce the
count.

a

little note at the end which said:, in a most difficult situation the
"Dear Mr. Wolfson .— Please go shareholders' rights had received
and lie down now—you must be about as much protection as is
given to man in an imperfect
e2

n

,

also agreed that the

shareholders'

was

The later proxy had

participated in

proxy

was

journing

,

the shareholder to switch his al-

legiance.

and

tally made.

a

21

reserve

0f

feet of gas in

1y2

trillion

Alberta

and

M

T)ana M

Hast-

BOSTON, Mass.-Dana M Hast
ings has been added to the staff
.

cubic

of Eaton & Howard, Incorporated,

Mon-

24 Federal Street.

22

The Commercial and Financial Chronicle

(990)

Continued from

first

Boom
standard
bilize

which

on

For

vast country

Stability?

or

sta¬

can

we

but

nightmare growing
left-wing misconceptions.

Some

of Normalcy

Standard

Real

No

have

and its various parts. But we
no real standard of normalcy,

have

of

or

movement of our econ¬

and

state
omy

and

boom

have

depression. We
guide for eco¬
While we give

genuine

no

stability.

nomic

lip service of respect to the fact
of a manifestly expanding econ¬
omy,

force

we

with

carded

measures

our

activity into compari¬

business

of

sons

all

levels

the

past.

the

of

dis¬

attempt
to
of the
of the

Some

of

one

our

economic foundations worked hard

literally thousands of
series of current statistics on the
We

ago

years

on

analysis of the problem of

an

the

future

of

level

economy,

the

for

forecast

our

1950
the cycli¬
cally low level which that year
actually reached.
Recently, the
same organization has spent a lot
and

more

and

money

prognostication

with a
near fu¬

come

up

the

for

ture that is far short of what the

record

of

in

impersonal

its

our

forecasts
testimony.
A

which

in

or

detailed

a

re¬

of

trends
of

probable

individual

long

busi¬

plan¬

range

-

considerable period of time
For current administra¬

with

along

the

of

measure

total

our

in

changes

closest
is

economy

published officially in a thorough¬
ly usable form only once a year;
Its form of

too late to be current.

normal

publication

quarterly

in

terms of flexible dollars is not an

who

managers

ship

for the business
take the leader¬

guide

adequate

setting

in

current

our

eco¬

nomic pace.
In

short,

have too

we

many

sta¬

standards for evaluating

the

real state of our current economy
for

and

its

stabilizing

future

course.

does

everything else in the world.
of this change is the expan¬

Part

sion

as

sion of

dynamic growth, and part
constant wobbling along

of it is

we

that

and

the

future.

near

The

practical businessman would

like to

see

end

an

to guess-work

grew

of

the

expan¬

from the

away

European finance,
fourth decade was

abnormally low

floundered

we

as

in the great

false

the

of

view

future.

Washington officials

what

tak¬

last

as

depres¬

a

Our

inconsistencies

Such

and

con¬

first

class

Columbia

at

of

of past details of our economic life seem
to
be
engaged in a constantly
performances and discourage dy¬
changing inter-relationship^ con¬
namic growth.
stantly rendering the old '"indi¬
the

deify

activity

level

Emotions of the Forecasters
A

few

ago

years

writer in

cators"

financial

a

of the leading New

one

York newspapers wrote

that most

non-indicative.

able

our

mists
work

mathematical
noted

are

out

for

perfect

of

Some

econo¬

Being able to

correlations

to

analyses of the present state and forecast the future when it is
future course of our economy were past and gone, but the changes
based on the innate emotions of in the importance of the so-called
individual

the

than

itself; and so
of sage

omy
a

have
opinion

we

range

of emotions and

have

rather

forecasters

indicators make their forecasts of

econ¬

the actual future little better than

"the record" of the

on

as

wide

Simple Growth Record

preconcep¬

Men of hopeful outlook are

tions.

Yet
the

psychology are usually bears, and
an indigestible meal will increase

is

writer held

The

bearishness.

there

matical

usually bullish, while those of sad

the

is

order

simple

a

in

the

mathe¬
of

record

growth of our economy that
highly dependable; a mathe¬

matical
true

order

measure

that

can

afford

a

of

depression and
that a genuine anal¬
boom, that will help greatly to
the movements of the forecast the
future, and that will
economy in the past—the record— some
time be widely known and
would afford an impersonal and
respected sufficiently to give real
dependable guide to the future dynamic
stability to our economy
the

to

idea

of

ysis

with

from

bias

no

the

emotional

opinions of the experts.
When

look at the record

we

of

the opinions of these experts, we

with

left

are

chastened

a

At the end

about human wisdom.
of

the

last

war

feeling

some

leaders

in

and

reduce

unemployment.

This

mathematical order has been ob¬
scured

by

statistical

too

much

some

down

brief

was

few

after a
while the

economy
even

years,

still

goes

on.

but the wishful
men

of

our

kind of weariness slows

the

pressure

record

but this record indicates

economy,

that

the

in

few
war

That idea

thinking of

of cheerful outlook.

a

The

opposite view of the extreme bears
of that time was expressed by the
doleful warnings of an impending
ten
In

million
the

war.

or

nation

more

at

unemployed

the

end

of

Fortunately, this bogy




the
was

national

business

method in

artificial

forces

one

is

trend

concerned

of

business

in

the

and

in

future
its

sta¬

bilization.
like

to

level

had

of
a

Business leaders would
know what will be the

business

dependable

ahead.

If

answer

to

question their products and
ices

they

and

the

furnish

employment
would

be

This is rather
it

large order, but
deeper one

a

filled.

be

can

ordinary

The

disturbances

mathematical

to

with

but

the

even

facts

rule

than

loss

in, the

what

had

12-years-sag

appeared

debt.

Surely it

the concept
pectancy"!

below
be

to

time to forget
"normal ex¬

was

of

The

death

of

Some of us,

any

still

was

however,

stub¬

are

stubborn. The

more

release

of

business,
necessitated by war requirements,
from the shackles of political re¬
straint

allowed

surge-ahead

our

spite

of

to

levels

our

in

to
forties

economy

the

above

bined into one total, for that is
the climate in which they operate.

con¬

the basis of this

on

Expectancy

future

and

during

early

the

normal

ex¬

the

of

curacy

the

casting.

this

The

registered

was

witnesses

with

before

war, and

the

ten

fore¬

were

of

war

to

each

of

other.

the

as

the

close to

as

estimates

1946

1946

of

our

various

estimates

Since

then

are

later

first

years

of

comparisons between the Normal

were

shrieking

Expectancy Trend and the evolv¬

and others

peace,

of

some

continuation

for

the* end

the first official

ac¬

fore¬

dependable

proved to be
in

decade.
the

of

system
forecast

revisions of official

While
a

into

levels

line

recorded

past

confirm

decades.

casting

Trend

into

put

results

economy

millions

more

or

with

for several

gested
that

unem¬

business

indexes

decades, strongly sug¬

that

would

we

middle

ing economy and projections into

of

line

return

"normal

to
ex-,

national

in

economy,

disturbances

great

from

ematical

trend

of

development
a half,

this last

over

century and
following this

still

trend.

record.
In

by

memorandum

a

the

writer

dozen

a

shortly before World War
ended, a forecast was ventured

II

the

on

basis

this Normal

of

Ex¬

the

eco¬

pectancy Trend to

cover

nomic

level

This forecast

first

the

for

of
just 1.1%

was

year

Restored

This close

hit, when the proph¬
emotionally
induced
were
so
seriously off

using
judgment

base in their

confidence

predictions, restored

in

the

old-established

Trend

ancy

this

trend

validity of the
Expect¬
Not only had

Normal

line.

line

followed

been

by

our

disturbances.

line

ward

was

steady,

although

business did not follow it with

steadiness.

Wars

and

depressions, changes in financial
relationships with Europe, bursts
of immigration and various out¬
side

disturbances

kept

this

fol¬

lowing

somewhat unsteady, but
our
economy
always
hovered
around this advancing line as a
flock of chickens follows
hen.

The

existed

the

in

rest

mother

a

general

same

situation
the

of

capi¬
talistic world, to the disgust of our
friends
of

who

growth

east.

face
was

a

This

line

"normal

ex¬

pectancy" which the facts of busi¬
ness

followed

inexorably

more

life in¬

our

tables.

Interruption of the Depressions
But the

after

the

would

was,

worst

The

stay

we

imaginable
question

next

on

close

or

that line?

to

No system

of forecasting is de¬
its forecasts have

pendable until

been registered for the actual fu¬
ture and put

until

the

the

into recorded storage
are open
to full

results

inspection
facts

This

comparison

and

future

the

as

with

unfolds.

the

this

Trend

been

com¬

further work has

peace
done on

pectancy

of

restoration

parative

have

Normal

and

the

beside

set

of

up

latest

the

our

total

econ¬

on the records
revised. The Nor¬

was

great depression

1929;

from

the

current

suspended growth.

vehemently that
forward

the
to

things

Whether

We

our

best

was

better

a

our economy

did

Obviously

growth

has
than

has

all-important
materiel

depend¬

the

supposedly

orders.

war

orders

1953

dynamic

more

much

ability

from

our

War

cut

back

were

strongly early in the Eisenhower
Administration, yet the drop in
total national business

what

might

with

have

was

been

merely

expected

loss in

no

military orders—
especially since business had had
emotional

an

upward after

surge

the election.

The way our civilian
absorbed
activity formerly
devoted to war orders is a great

life

testimonial
the

to

the

capitalistic

strength

free

of

economy.

This

piece of evidence, added to
fact brought out in the chart
that the
recovery- of
1950 was

the

already
plished
started,

than

more

before
makes

importance

analysis
that

World

the

this

I

indicates

activity

slowed

rate of advance instead

our

boosting it, while
of

rate

foolish.

War

record

military

down
of

of

economic

look

war

in

War

extreme

the

on

of

back

accom¬

Korean

various

commentators
Even

half

the

absolute

our

industrial

activity

in

World War II reached its peak in
1943 and then declined. It is true

that,

by

restoration

business

initiative,

of

private

did pull
us out of depression in the
early
forties, but it did it only by re¬
war

storing free enterprise, and
peak of industrial activity
reached

long

at

women

duces

before

War

war.

the

the

puts

end

more

work,

value

the
was

but

of

it

their

of

men

re¬

work

in economic terms.

1955 Not

Boom

a

This basic evidence
record

of

be

dynamic

a

our

shows that

was

not

was

slightly

shows to

normal

the second

the year 1955

what the

on

economy

below

growth

quarter of

this

1899

to

1929

a

we

facts

boom, but

a

this

dynamic

the

point,

Normal Expectancy
is
purely a mathe¬

97.6%

1929

on

cent

economy

Marx

of

already
right

was

the

had.
that

line

production figures for re¬

these figures
fitted to it, although they array
themselves more closely to this
years,

normal

That

nor

line

as

the wavy

economic
around

are

the

years

go

on.

line of our actual

activity

hovers

closely

mal

end Cap¬
whether the Communist
program of 1928 was really the
blue-print of our destruction that
it seemed;
whether French fi¬

manipulation destroyed a
treaty and renewed war

of

third

Its low

quarter,

normal.

The

year

was

1953

of

actual

was

static

the

normal,
and its
high
the second, wa£ 105.2%

told

look

was

98.3% of this normal.

by

to

to

back

just
Expectancy

economy

Normal

whole, 103.4% above this

were

could

was

of the

dynamic

growth

distribution
we

of

99.7%

Our

was, as a

italism;

peace

it

as

projection from that ear¬
lier period. It is not fitted to the

Trend

booms and busts would

nancial

1954.

1799

years, and
decades.
From

by

matical

and

to

in this past quarter. The year 1954

to

along and the "normal expect¬
ancy" seemed to be entirely sep¬

over

possible

Trend line was
fitted to the 130-year period from
Expectancy

present

from

is

normal.

mal

came

arated

little

Ex¬

All the work

to 1929

to

results

rather drastic revisions in the of¬
ficial estimates
omy.

it

amazing that

as

and

Postwar Revisions

Since

fell

that

have done.

we

been

This is the most

that

test

1790

expectancy of

surance

the projected Normal Ex¬

It is

circulatejd

half

to

friends

dollars

our

to

main¬
increase their close¬

or even

ness

before

apply.

business, written in terms of such
purchasing
power, followed a persistent up¬
ward line of expansion. This up¬

tain,

laid

our economy

severe

statistical

economic

our

line

constant

velopments in

been

pectancy Trend.

of

A quarter of a century ago it was
obvious
that
our
total
national

of

have

facts

economy
for many
earlier
decades, but its validity had been
shown
to
carry
right over the
business for many years had, up greatest depression in our eco¬
to that time, followed a trend of nomic
history as well as two
development that was remarkably world wars, and violent changes
in our birth rate.
The important
dependable, when the "rubber"
was taken out of the dollars with
thing was that we were back on
the dynamic growth portrayed in
which we measured it. Up to 1929
the statistical record of American our old Normal Expectancy Trend

is

and

future

pectancy" established in the cold

ets

the outside, has followed a math¬

with

and
more
dependable.
These
business leaders need to know the
future level of all business com¬

Forecasting
Normal

pectancy established in the earlier

covered

accompanying charts show

that

good

which

in

has been registered for the actual

are

by our life insurance actuaries.

that

greater

Product

the

they
serv¬

National

experts, and the actual future de¬

normal

essentially

Gross
stant

gent; a guide that is based on
facts, not mere theory or wishful
thinking; facts of the past, of

its

not

activity
(measured since 1929 in terms of

working

than human mortality follows the

analysis,
and it has been obscured
by price
changes caused by more or less

1929, and

ployed, the writer, who had been

complicated

forecasting expected the national part of our business
trends.
economy to forge right ahead at
Since employment and general
war-peak level into peace years.
prosperity depend so greatly on
Such a thing was not only un¬
the activity of
business, every¬
heard-of

guide to the future that will

complete

guesses.

we

as

Our

and although the minor
fluctuations.
Individual
only six months matters are subject to the judg¬ away from the actual level of our
national income as officially esti¬
of
ago was forecasting a 50% expan¬ ments
management,
within
mated the following year.
sion in the decade ahead.
limits, but the great masses of
Confidence in Trend Line
economic change are more subject
Clearer Guide Needed

recurring
distinct
economic
the
of business phenomena. • Unfortunately,

indexes

reasonably

a

year,

a stability of growth and not the
stability of stagnation. Too much University many years ago, the
of our critical analysis of the cur¬ writer once hoped for much from
rent state of our economy encour¬ "business indicators," or a cycle

nation.

strangled until its cumulative

Administration

path.

at best, the stability of stag¬

same.

1799 to

economic-

make his judgments more intelli¬

Today

are

the
was

peace.

belabored

was

Mitchell's

ages,

unnecessary.

like

would

own

ing measures to check our current gets into the statistical facts of
rate of economic activity, which our economy, the more one finds
they describe as a boom, although the dominance of clear mathe¬
it is only 5% above the level of matical rules that ride right over

a

upward

he

his

depression which was
This four-decade course, but facts that have been
trend was
grossly tilted down¬ shown by the record to foretell
ward from the true long-time rec¬ the course of the future within
ord of our growth and
gave a fairly close limits.

among
the
leading
Very few of us tradictions
gain from the wobbling in the pundits clearly show that business
needs a clearer guide to
economy, and the great bulk of sorely
the
citizenry
loses
from
such future activity.
As a member of Dr. Wesley C.
instability. Our goal should be

Its

entirely

judgments
But

clear

make

will

that

made in Europe.

sion

of business activ¬

The intensity

ity keeps constantly changing, as

period of abnormal

a

limitations

our

tistics with too little meaning. We
lack

that the first two of these decades
were

was

period,

recent

comparative

guidance they need to know
probable! variations in the

future

the real vital economy. The

result

decade

tive

this century.

runs

disbalance—the

plete

com¬

storage

trend of the first four decades of

anism

our

And

wheels of

He ignored the fact

caused

born and suspected that economic

and emotionally induced
expert
judgments in this field. He does
not look for a guide-book for the

Rube Goldberg mech¬
which
only hesitatingly

turn

law

field forecast the future-from the

a

the

in

ahead.

a

Normal

a

which

ning they need such information
for

accident for

no

Expectancy Trend line of the 13th

trend after 25 years of sheer pro¬
jection of the old normal line.

the

the current state
economy
by the phases
gauge

be

can

our

op¬

soon

may

and

For

,

whether

or

own

their

of

course
nesses.

basis;

normal

their

business

financial

a

question of the
expectancy amounted to
special lines twice the billions in our national

they
the

to

answers

on

natural disbalances brought on by
war created the great depression,

dollars) to follow along with
each other so closely, for so long
a
time, and in the same growth

They also need comparable

erate.

economy

few years ago one of the soundest
of the economists working in this

on

gional basis, covering the smaller
areas in which
they now operate

year

lower than

nearly 8%

business

eral

a vaporous

out of

economic life?

our

practical

operations in this
the executives of our
larger corporations need to know
the probable variations of gen¬

page

.Thursday, September 8, 1955

..

the

old-established

Nor¬

quarter,

normal.

the

Thus

whole

1954

was

that

from

quarter

5.1

drop
to

quarter

7.6

points.

from

that

percentage

high

was

the

1953

year

of

points;
to low

Our ad¬

relative to the normal from
the low point in 1954 is now

vance

only

2.1

percentage

movements

points.

look

quite

Dynamic

different

Expectancy
Trend
is
not
merely, accidental. It can be no

when measured in relation to the

accident.

dynamic trend than they do rela¬

chance

ship

if

It would be the wildest

such

a

close

relation¬

existed for so long a time
without
a
determining law.
It

tive

to

really

a

erence.

the

dead

level

which

i3

fictitious standard of ref¬
We

have

not

been

ad-

Volume

Number 5462

182

vancing much
dynamic
advance

that

requires,

trend

the

scarcely brings

The Commercial and Financial Chronicle

rapidly than
and

more

our

...

we

us up

had

have

volatile

than,

advance of the

total

economy.

down

to

96.2%

is

always

and

more

frequently -in

movements of

This
of

official

The

the

for

for 4%

to 5%

resulted.

year

in Au¬

facts

when

course,

of

this

face

the

long and continuing

record, we are driven to discard
the popular opinion that we are

this

slightly
higher than the Board's previous

in

estimates.

normal tidal

tends

Forecasts by use

to

Future

to

run

of this Normal

Expectancy Trend method for to¬

a

ade

appearance

of

Expectancy

advance

be held

points

to about

above

half of that fig¬

it would last longer.

ure,

Unduly

however,

lead

to disillusionment

ness

that will bring a more rapid
All the evi¬

much

for

those

who

preached
"maturity" in the 30's to face the

line of

Normal

Ex¬

closer to

this

upward

line.

warnings,

may

and rash¬

and violent advance.

dence

from

the

indicates

record

for

to his
ness

the

for

lines

individual

of

industries

businesses.

entire

terested

public

the economy

of

use

maintain

Com¬

chance,
might

on

the

basis

of

available official data.
The
ager

individual

is

chiefly

interested

details of business that

are

man¬

in

the

closest

stability for
whole. By th£

of

of

our

could

the

dy¬

economy

and

would

stability.

power

for

the

without

forcing
Stability on the

prices.
the

business

greatly in¬

are

Per¬

also, labor management
better secure a
broader

purchasing

country

a

greater

men

areas

But busi¬

general and

analyses

record

be obtained for the smaller

the

as

such

management

and

23

in increased

parable results could also readily
of

operations.

own

management in

namic

casts

the
present level. If the advance could
percentage

ab¬

an

upward

continue

the rate of

at

six

It may be too

in

to grow

More detailed work in this field
could
provide dependable fore¬

with

ripples

will

economy

stabilize it

be expected

strong

wave.

our

years

this

pectancy and that greater knowl¬
edge of this dynamic growth will

continuous boom in this dec¬

but

that
for

cyclically for about
another year and to reach about

above last

we

every

Our economy may

year.

Of

high records,
is dynamic and

new

economy

continuing to be dynamic.

Indications

advance of at least 6%

our

our

manifests

lower

gust of 1954 and stood at 105.6 this
last May.
The latest revision of
index

ever-increasing
but

actual

the

typical pundit opinion

was

what

than

from

for the entire year 1955 are.ior an

went

index

normal

activity varied by only

fraction

estimates

for 1954

The Federal Reserve Board In¬
Index

small

to the ever- -4954.

advancing normal.
dustrial

retail

tal
a-

(991)

work¬

inflated
of

basis

Normal

Expectancy
Trend
stability of stag¬
nation, it would be dynamic sta¬

would not be the

bilization.

CHART I

Louj-EitaJbtulud Itend of Our NotUna.1 Economy
A

Cent-ry sod

has

a

established

rsiurned

in

Half of the Growth of
a

epite

our

National fconomy

Long-Time Trend to which it has alwtys

of wars, booms and depnesions and

changea in populationa growth.

/■W&

200
u

I

190
180

o

u.
cat

3

170
160

•

JS

130

V

+

I

The National

M ft

140

in

130

c

ahown

power

of our national

dollars

Economy

of constant

ia

1

purchasing

income up to the

year

3

1929.

from that year to the present

this

120

«

series

of data

c
c

gross

110

1929
v.

ia

projected by

our

national product in terms of
dollars.

100

o
flu

90

u
m
0-t

80

5

70

S

60

m

C
o

30

—<

40

3
A

The Normal

30

BILLIONS

IN CONSTANT

DOLLARS

is

20

the curve

decades

10

1929.
over

0

KCI44AL

wmr

Expectancy Trend

test fitted to the dels

1799 to 1899 and
from 1929

onward It is merely projected

the. distorted
end through

for the

the yeere 1900 to

economy

of depression and

the poet-war decade.

2

i

-

-30 i
a

-20i

'•!)

♦

\'W

FU&tPM DEVIATION

1°
5-10*

♦ ♦♦♦

♦♦♦

♦1

NORMAL EXPECTANCY TREND

*v
Am

;

•yyt

-40<




CHART H

Mum
Our

1799

Recent National
to 1929

♦

,e**

to Normal \
Kconony returns to the

Trend of Noraal

Kxpect&ncy

■

4

%5r

24

The Commercial and Financial Chronicle

(992)

able traffic experience of the cur¬

voice

rent

show

the

for the
eight months through August re¬
ported common share earnings of
$4.62.
This
was
substantially
year,

the $2.63

above
earned

and

There

was

time

a

many

years

the modernization of yards and in

when stocks of the coal car- other property improvements with
were
considered the prime the result that a large part of the

ago

They

generally

were

ficient

earnings

their

operations,

ef-

highly

had held up

much better than the
industry average during the de¬
pression era, and they were con¬
sidered relatively invulnerable to
the new highway competition that
was just
beginning to assume an
important role in our transporta¬
tion

notably high degree of

once

characteristics

the

of

Continued

from

page

tor

their

to

lose

favor,

these

years

began

revenues

for

number

a

stocks

lagged

of

sen-

ously behind the rest of the rail
Most recently there have

market.

indications

been

change

in

tors

may

the

on

is

There

taking

is

that once again invesbe looking with greater

place and
favor

another

that

sentiment

roads.

coal

greater confidence to-

in

fact,

existing
plants that had been burning oil
many

have been switching back

or

gas

to

coal

Patman Acts Not
troversial

Textual

cases.

formed

exegesis

nomjc

understanding of the
impact

enforced

mission
much

the

of

tha^

because

nrice

of

differen-

witnessed

remarkable

im-

retailing of groceries, in spite of
the choking off of unfairly discriminatory price concessions by
manufacturers to big buyers, and
the elimination of local price discriminations
by
giant
grocery
chains. Introduced by independ-

Tobacco

cases

in

1904

landmarks

and

1911,

of

pro-

vided little insight into the effect,

if

have

needs

ar(j oil of New Jersey, and American

with

Finally

any,

]ast

year so far in 1955 and for
the full year it is expected to top
million

28

The

Sns

traffic

export

Pocahontas

&

Ohio

last

Tene°iciaries

naajor

with

eomnared

tons

less toan 14 million

the

are

carriers

Norfo k

vear

PersPective.
if our understanding of so
ancient and familiar a piece of
legislation

the Sherman Act is

as

ents, and just beginning to

appear

so-called

Thesaneake

&

Western

and

Vireinia'n
"
'
Chesapeake
„

.

Although

,

_

.

Ohio

&

&

'

thing to the Act, has not meant

bumbling naivete of the

Trade that small, inefficient stores have

*

*

(° l?,d

cannot

By

°L
At .SAl' 1955, it was estimMe_d^ that stores
substitute as economic evidence with a volume of $375,000 or more
a detailed market study if per week did almost 54% of the
per week did almost 54% of the
predictions of general economic grocery business, although they
debility, or even irreparable dam- made up only 6% of the total
age

to the efficiency of grocery or

number of stores

losing off special concessions

^now*less dependent on thfs the r®al'?tic ee°nomic appraisal of Sherman Act proc^edfng^imUa?
aepenaent on" tnis thA
Robinson-Patman
Act
and to
Robinson-Patman Act

one

commodity than the two other

now

less

a

largest

,f

try.

«t
Last

time

is

it

carrier'

coal

in

still

the

the

coun

bituminous

for 48.5%

Qprtinn

the

of

3

bect;9n. A

Wje

.

Clavtnn

Act

Clayton

Act

coal

dealing were most
prior to enforcement,

of the road's

prevalent
first distribution has become noticeably
less efficient. What has happened,

freight revenues, the
in its history when this

com-

of

manufactures

and

miscellaneous

accounting for about
freight

'with dlnce"of'

interests,

third of all

a

stemmed partly

revenues,

from industrialization of tne
irom inausirianzation oi the

ice
a

area

and

number

of

Marquette.
inai
that

There

continue to have
on

stnf

A,th

.

Although

indications

are

exnansion
expansion
an

h

will
will

important in-

the

of

but,

resureenre

of

m!ior imnoTt

..

the

,

road

was
*

fionti ell'
tram has
gram

Pere

of

the road's fortunes

nevertheless
coal is

ago

years

,1

r
been

late

-4

4

.

in

an(j

of

This

trend

to-

may

on

economic grounds,
to offer keener

serve

competition to the national brands

in other stores.

high cost

distribution

been rebuilt on time and laborcTp^V?n" saving one-story plans, and the

■

Act, even
the efficiency

cau_B

independent

and
i..,-

l„a

whole-

n

rely only

on

Wlli

damned.

Such

faith

in

a

years.

,fl„.

dering.

J*

free

rt

~

;

Conse-

market ignores inequalities in re- <lueiltly, wholesale margins have
sources> degree of integration, and declined—by 50% since 1929, acbargaining power.
cording to Professor .Converse.
While there is a regrettable Some voluntary group wholesalers
dearth
of
detailed
studies
that
Muuics uidi appear to be ordering, warehous+.

WOuld permlt an unequlv°cal
Pr°" is sufficient material available to
a"SWer l° the
y questlons'there
aggres-

j

,

ing, and delivering groceries with
a mark-up of 4% or less over in-

Also, the suggest that neither the Robinson-

company has done a good

large

as

possible

as




as

interpreted by the

of'

the

and

13

p.

2.

make

canner

to

part of his output

a

to

the

chains,

reduce,

course

which
in¬

not

have sales forces,

brokers

to

seem

perform

on the whole, the
j role of floating
salesmen, It is difficult to con¬

clude

that

Section

2(c), drafted
to prevent coerced discounts mas¬

querading

brokerage,
could
have noticeably retarded economic
as

in

advance

food

distribution.

The

road to greater efficiency
petroleum marketing seems to
lie m increasing the size of the
dumps, cutting down the number

in

small-scale

of

bulk

plants, and
evening out peak
deliveries of
products from refineries. Nothing
in

the enforcement

of the

Robin¬

Section

or

Clayton Act

have

to

appears

of

3

these
trends.
Multipleservice stations which take

delivery

in

tank

car
quantities,
by independents
buying unbranded gasoline — and
were

initiated

hence

invulnerable

Patman

Robinson-

to

Act

passed

on

Major

proceedings — have
savings to mortorists.
companies have con¬

oil

centrated

their

terminals

and

distribution
sold

small

in

bulk

plants to fuel oil jobbers. Roundthe

clock

of

use

cut costs.

tank

In the

has

trucks

fact of mounting

labor

costs, and greater invest¬
ment,
the
wholesale
marketing
margin does not appear to have
climbed

much

than

more

third

a

since 1936, although in some areas
the retail dealer gets almost twice
much.

as

too

There

this

waste

blamed

perhaps

may

be

gasoline

many

stations, but
capital cannot be

of

the

on

Robinson-Patman

Act.
In

gasoline

marketing

it

is

tne

ieader's
rash

recent

Moreover

price.
of

in the
petroleum industry has, undoubt¬
edly made even more precarious
mergers

the
supply position
of
dependent jobber. 15 %

the

in¬

,

On

ard

the

of

other

hand, the Stand¬

California

cases

ficial

effect

stations

to

Richfieid

and

to have had

appear

Socony

opening up retail
independent sellers of

Standard

and

Event¬

leases proposed

new

become the rule—the
3

bene¬

a

in

motor oils and accessories.

ually—if

by
Indiana

of

Section

new

result in lessees being able
buy gasoline where they wish.

may

to

One

of

of

the

the

the

first

consequences

Ropinson-Patman

drug

tion

trade
the

of

hazard

the

was

in

Act

elimina¬

arbitrary

and hap¬
quantity discounts,
allowances, "P.M.'s,"

of

use

advertising

demonstrators and deals ot vari¬
that

ous

sorts

the

industry. J6

dozens

they

had

honeycombed

every

available

to

there are
month, but

Today

deals

of

are

terms

the

on

same

Quantity dis¬
counts have been cut sharply. But
the rapid march toward more ef¬
ficient
istic

everyone.

merchandising

of

character¬

and

grocery,

to

lesser

a

extent, of gasoline distribution, is
not found in the drug trade. Low¬
er-priced
private
brands
once

provided the only

means whereby
could make a profit,
whereas today, most independent
druggists apparently sell few pri¬
vate brands.1'?
Chains, which do
only 20% of the drug store busi¬
ness, and
show no signs of in¬
creasing this proportion
try to
effect warehousing savings on all
items
for
their
wholly-owned
a

Act,

blocked
pump

druggist

stores, and, on private brands for
their

stores, but the na¬
the products, and the un¬

agency

ture of

predictability of demand make it
impossible for cooperative whole¬
saling and chain drug operations
to
realize
the
improvement in
margins achieved in grocery re¬
tailing. The drug store has always
centered about a personal service;
there

and

are

indications

that

it

is

moving rapidly to dependence
on
prescription business as a ma¬
jor source of income: in 1954, 25%
of the sales of independents, as
12.5%
in
1929.
Both
independents are los¬

against
chains

and

ing
the
price-fixed
business
(which
includes
almost
every

except prescription and foun¬
the grocery super¬

doubtful that the F. T. C.'s action

item

in

tain business) to

the

Standard

of

Indiana

de¬

cision, and the resultant legal un¬
certainty regardirig discounts to
integrated
wholesaler - retailer
have

had

limiting

the

effect

either

marketing
decade

the

the

wars or

of

seriously

virulence

of

pressure toward

the

of

end

almost

reminiscent

of

influential.

How many

refiners ever
sell
their
gasoline to known priceOne

cutters?

of

the

most

active

of the postwar

price cutters at the
tank wagon level has been Sun
Oil
Company, which has never

engaged in dual distribution.
Standard
to

its

of

policy,

will

out

uses

store

according
on price

price-cutting

to
thus

—

taking advantage of the Supreme
Court's interpretation of the goodfaith clause. But this policy, ex¬
ercised, by a dominant seller, may
contribute
to
stabilizing
prices

self-service.19

will be

halt to mail or¬
auto accessory store of¬

to

bring

and

der

the

wholesaler's
those

ency

to

rather

of

discount

wholesalers
demand
than

to

will

who

larger

increase

their management."

tend

have

trade
the

at less than the
price for house

retail

100

level

tires.

has

Sears

partial ownership of tire factories,
which
produce to its order on

specification.
decision

Commission's

The

under

the

quantity lim¬
its proviso of the Robinson-Pat¬
man
Act, although weak in its
economic underpinning—it seems
absurd to say that 63 buyers can
tend to monopolize anything—can
only lead, if it is sustained in the
courts,
to
complete integration
by the mail order houses, and
perhaps the auto supply stores
and oil companies as well, with
competition continuing unabated,
and perhaps intensified.
In

summary,

there seems to be
quarrel with

serious economic

no

15 For

a

Kahn,
253

cit.,

op,

and

tion," 46
469

Section

3

of

fuller discussion of the Stand¬

of Indiana

ard

of

enforcement

the

see Dirlam and
121-123, 131-133, 246-

decisions,
pp.

255.

Robirison-Patman

16 "The
14 See
the
interesting
prediction
in
Comment, "The Robinson-Patman Act in
Action," 46 Yale Law Journal 447, p. 455
(1937), to the effect that "elimination of

a

tires

of

nominal
brand

has

Act

Robinson-Patman

ferings

vigorously

move

local

meet

Indiana,

statements

recent

of every six drug stores
self-service, and every new
opened by the chains in 1955

One

failed

pre-prora-

signs

minor revolution in the trade.

a

World

tioning days; never have com¬
plaints by gasoline retailers about
the unfairness of their suppliers
price
policies
been
so
bitter.
Eliminating the peculiar form of
the squeeze developed by Stand¬
ard of Indiana, which had its re¬
tailers tied to it by leases, cannot

branded

of

The

War II has flowered in price wars

Even so, there are

markets.

The

rationalization.

since

accustomed

-

to

seems

(as is generally assumed),
business
of
food
brokers.

counts

job in Patman Act,

Act

advantageous for the

sell

remove

sively in recent

recalled

be

.

been equally eager to
test, by relying merely on syl- adopt the latest innovation in fork
log!stuic P^e theory, according to lift trucks, pallets, angled aisle
™hlch.,-any interference with pric- arrangements, and punch card
mg
discretion
is
automatically
we

should

It

The

major

equally rapidly. Warehouses have

chan-

"hard
?.?d can not condemn the
decreaslng P"ce flexibility? chain
We

fiTsJ from

labor

have been

freezing"of^nUqulted eauSv raTlwi^W^h'^

'I3.

A,
pushed

to

nels, insulation of inefficient small

partly from merger if

industrial
maustriai

fluence

servserv

and

the

in

groceries

jectionable

groceries, gasoline, drugs and rub- soid

versification

+

company

ward fuller integration is not ob-

since

1936,

marketing

other

freight receipts.

di-

case

j

even more strongly its
own brands o£ canned goods, and

modify provided less than half of
The healthy

2?
have spurred the
•

may

™hetj?er'.ln. th°se emphasize

W°Uld

A areasexclusiveprice discrimination
where
and

k

year

accounted

total

carriers

more,

selling brokerage in the food

price

and
ana

is

they

the

the retail grocery

over

business. They afford big gains
in convenience and saving in
labor; today they account for
about 82% of the grocery sales.
Frozen food now contributes 4%
of all grocery sales, and the number of stores with self—service
meat is increasing by about 2500
a year.
Retail margins in the
supermarkets have been cut in
some cases to about a half of the
25% once thought to be the minimum for a giocery, although 15%
is more typical. Even the smallest superettes are carrying drugs,

greSeaot^emiLat^drntetrdaf: ®3&?e r6taiUng' ^ t0 ^
Pocahontas

that

have taken

™> matter how controversial This persistence of the independts,
Arguments in the Governments although it may have owed some^rie^ ln

been

do not feel
under an unfair

or

years

son-Patman

f

this

of

15

in 1936, self service supermarkets

broad

the

have

may

within the letter of the law

CannerS rarely

Commis-

Trade

provements in the wholesaling and

one

the

organizations like Red and
White
and
NAIiOG, that have

the

sion, nor the Standard of Cali
fornia
decision
have
seriously
impeded progress in distribution,
The years following the passage of the Robinson-Patman Act

as

argument to be persuaded
Supreme Court decisions
Northern Securities, Stand

jn

Conflicting

unreconstructed

eco-

statutes

No

cut

less,

for

inde¬

of

cost

buying coopera¬
slightly reauced. Nevertne-

lived

Small

area.

of

brunt

P.'s

of 1GA and other
tives

wide

a

the

crease

through court and comdecision.

has

over

pendents, if they know a powerful
supplier will come down hard on

them, protected by the good-faith
clause, may be reluctant to under¬

A.

produce

Act

slightly increased, and the income

that

imperfect, we are not likely to be toiletries and housewares,
economic recovery that has taken well-informed
on the economic
The share of the corporate
place in Europe there has been a consequences of Sections 2 and 3 chains in the volume of grocery
sharp
increase
in
the
export
Clayton Act. It is obviously sales has not varied significantly
movement
of
bituminous
coal
unsafe to draw conclusions that since the passage of the RobinsonExport coal has been moving at a.PWy to an industry or distribu- Patman Act. having leveled ofU
more
than twice the volume of tl0n in general *rom a sln§le deci~ at roughly a third of the total. 13tials

buying

to

industry, the

felt

has

enforcement.

its

little

superficial ef¬

a

grocery

which

area

would

like those of Professors Berle and
Means, G. Warren Nutter, J. Fred
not the whole answer.
Analysts Weston, A. D. H. Kaplan and
also
point to the greater stress
^•' Adelman, into the shifts,
now being laid on steam generattrends, and sources of concentraing
rather
than
hydro—electric tion, have furnished only an intro—
plants in the expansion plans of the duction to the problem. Much reelectric utility industry
Most of niains
to be done before the
these plants are equipped to burn Sherman Act can be put in proper
and,

the

on

goods.

portantly by the broad upturn in
our
overall economy but that is

coal

anything but

fect

is

"brokerage clause"

Robinson-Patman

handicap.

—-—

12

of Sections 1 and 2 of the
coal roads
than there has been Sherman Act on the concentration
in many years.
Coal traffic has, of industrial power in the United
of
course,
been stimulated
im- States. Painstaking investigations,
day in the traffic outlook for the

aug-

or

Sherman Anti-Trust and Robinson-

antitrust

,

return of

generous

a

had

There

the

business is paid mainly on canned

an(j';analysisf va]uable though they
may
^e jn providing enlightenconsumption, tne stocks oi men^ on the
development of legal
the railroads primarily dependent
doctrine cannot
provide an incoal

quarters that
dividend, which

$3

merited by an extra.

coal

on

least reach

5.7%, will be liberalized

re-

into potentia

ue s

at

cost.14
that

the

of

it

given to the inroads being made

by competitive

now

many

———

indus¬

coal

try, and the wide publicity being

been

•—

Then in slow recog¬
the
retarded
growth

of

has

in

present

itself affords

op-

With this and the favor-

gained.

picture.

nition

efficiency

erating

the

For the
seems likely

which event it is

level in

believed

riers

investment media in the rail field,

1955 it

earnings will

the $7

share

a

respectively.

1953,

that

$3.92

and

in the like periods of 1954

full year

Chesapeake & Ohio

company

Thursday, September 8, 1955

...

Act

in

Ac¬

Yale Law Journal 447, p. 460-

(1937).

17 See

study

gists, Jan.

cited in

American

Drug¬

17, 1955, p. 13.

to

18 American

been

dis¬

p.

12.
19 American

effici¬
n.

9.

Druggist,
.,

May

12,

1955,

July

18,

1955,

)

Druggist,

Volume 182

Number 5462

the Clayton Act.
small

some

into

new

a

The Commercial and Financial Chronicle

...

Applied against
break

firm

it has

But

not

Act could perhaps result in a dim¬
inution of price competition. Bui
evidence

no

that

it

has merely checked,

to some

TODAY'S

prices

It

susbtantial business

interest—even the uniform deliv¬

ered—price benefiaries who once
portested that the Cement deci¬
forward

of

the

Robinson

if

Few,
chains

From

dends.
been

like

would

6.69%.

what the

Poor's

Average.

338.

were

.

..

r>

been instrumental in

Act

has

lirpiting the
offered

discounts

by

and cosmetic manufac¬
is undeniable, but it would

in

crease

Gross

Product

National

of

»

than

higher

is $263

rate

the

billion.
of

average

30

a

centage of Gross National Product as has been normal for the

it

condemn

to

this

on

30

estimated

at

annual

an

1950

From

Article:

South Fifth Street.

235

only

larger in

little

a

for

normal

(Special to The Financial Chronicle)
•

Me. —David

ROCKLAND,

R.

Hoch and Fred T. Spaulding have

the

joined

Mc¬

Lincoln

of

staff

an

ever,

the

&

is

J.
Eaton

Frank

with

now

Howard, Incorporated, 24 Fed¬

eral

Street.

the

last

(Special to The Financial Chronicle)

BOSTON,
Doherty is
Keller

Mass.

—

Joseph

affiliated

now

Brothers

W.
with

Securities

stock

prices

130%

prices
were

are

is

business

engaging in
from

teenth Avenue,

a

offices

are

nations by

Fif¬

24

30

the

in

an

invasion

about

Kendall, Nathason Opens
(Special to The Financial Chronicle)

LOS

ANGELES, Calif. —Ken¬
Nathason & Co. has been

dall,

formed

shire

with

offices at

Boulevard

securities

to

business.

1127

engage

Wil-

in

Partners

a

are

Roger H. Kendall and Maynard J.
Nathason.

With Calif.

Investors

LOS ANGELES, Calif.—Willard
is now with California

Dennison

3924

Wilshire

Blvd.

Charles F. Coaney
Charles F. Coaney, limited part¬
ner

in Butler, Herrick &

New

York

City, passed

Marshall,
away

wars.

1872

1910—

$1.72

1

5

3.69

3.28

(d)0.27

4.90

3

2.10

3.26

4

7.23

5

16.93

6

7.87

13.92

3__.

.

4

2.15

4

7—.(d)0.03

5

2.56

5__.

1.72

6

1.42

6

2.90

7

1.68

7

8

2.06

8__.

9—

4.57

9__.

.

8__.
9

.

.

.

.

.

.

1920__-

4.08

8.20

.

8.67

8—
9

$8.01

Z

1

8.77

-

4.70

2—

6.44

7,13

3___

6.35

6.52

4___

6.41

9.92

5

6.72

9.56

6

8.36

$3.06

1—

3.06

1— (d)0.31

2

2.28

2

5.93

2__.

though these nations have traveled much further
on the road to socialization.

2.49

3

3.28

3

4

2.00

4_

2.30

4

5

4.46

5__.

6—

6.53

6

These too are

1880—

years ago

even

3

on

.

.

.




.

.

.

.

.

in¬

5

1.75

article

6

2.19

largely ignored by investors at that time.
ever-expanding future for American
corporations is a favorite subject for speakers and writers.
This growth is not a new factor in the investment equation;
it has been going on for more than a century. Because of this
growth it has been normal for industrial stock prices to in¬
crease at an average rate of 3.20%
annually compounded. If
stock prices had risen only this much, we would not say that
they are too high. But it is prudent to note that,-, teking the
last 30 years as a base, this rate of growth would indicate that
the Dow-Jones Industrial Average should now be 280 rather

7

1.52

7

5.80

7__.

8...

1.20

8

2.85

8__.

9—

1.66

9—

4.86

9

VIEWTOINT:

TODAY'S
in

creases

Gross

five years ago

the

465.

National

The

Product

for

prospect
discussed

in

further
this

was

glorious and

the last 30 years as a base and a
normal increase in stock prices of 3.20% per year, we compute
that 465 on the DJIA might be considered normal in 1971, but
not in
1955.
In other words, present stock prices may be
discounting the future a long way ahead.
than

Again taking

From
can

1950

Article:

be compared

The

change in

by

individuals.

Unfortunately, statistics

.

8.53

7

10.83

8

11.95

.

.

.

18.50

.

.

*19.90

4—

20.50

5—

*24.20

2„_

Table
Temnleton, Dobbrow &

I

on

LII

Vance Index

earnings retained

changes

for

;

—

.

18.00

in

2

of Replacement Costs

the

for Common Stock#

dividends and modified to

in excess of

purchasing

Revised for new

•:

power

of

the

allow

dollar.

Cost of Living Series

1922...

1931—

146

1941_—

148

170

1932—

125

1942—

169

1924

168

1933

111

1943—

184

1925—

172

1934—

114

1944—

193

1926

173

1935—

119

1945—

201

1927
1!-*

170

1923—

on

"

^

Mi

Based

<

20.10

1953—

♦•'"Actual.

August.

-

18.93

19.50

1
*Estimated

,

13.40

9

.

1950—.**21.10

the level of stock prices

liquid assets are not available for the earlier years; but

.

.

1950—

with the change in the volume of liquid assets

the amount of
11 years
ago, in 1939, the liquid assets of individuals were only $50 billion,
whereas today they are $177 billion, an increase of 254%.
By
comparison, the increase of 48% in stock prices from 1939 up to

held

"

6.43

1940—

$7.97

1900—

2.35

toward

5.12

7

$3.04

the trend

3.43
.

8.99

.

1

controls and

-

1.88

2

2—

3

1.18

6

excess

1

4.22

2

1.72

.

$6.33

.

3.62

.

5.17

4

1930

$4.98

.

2.99

1

2.17

.

the United States

of Corporations in

1890—

$4.55

.

3__.

profits taxes applied,
from 1940 through 1945, the average annual earnings of corpora¬
tions were 5% greater than the average annual earnings of the
four years 1936 through 1939, which were taken as the base period.
Also, investors have been fearful concerning increased govern¬
ment

;
.

1

Table
Earnings

of

Index

175

1936—

118

1946—

216

1928—

172

1937

126

1947

252

i

4

-I

.

.

i

.

t

i

X
?4-

■

'

M

1929

174

1938

131

1948—

268

1930

169

1939

129

1949

290

1940h

135

1950—

229

1951—

335

1953—

358

•'V

1952—

352

1954—

365

:2

nzii:

J *

1

Ti

today, appears small.
TODAY'S VIEWPOINT:; There is

no

longer

a

surplus of
4

Aug. 30.

*

-

(Special to The Financial Chronicle)

Investors,

V

.

The conclusion of this study is

VIEWPOINT:

18 years.

military preparation points

socialization.

previous great wars.:-;

N'o one can say exactly when the long bull market
will end; but we can say that the risk in buying or holding
common stocks today is greater than at any time in the last

South

when

in high

,,

by

or

of

is

ings, (b) dividends, (c) national income, (d) liquid savings of
individuals/and (e) previous changes in stock prices caused

possible

a

market

stock

stock

Korea, investors have been
reduction in corporation
earnings
caused by price controls and excess profits taxes.
It appears that
these factors will cause some reduction; but also it is interesting
the

Since

worried

the

only

price

The expense of
increase in the price level.

Although

Article:

totally different now from what it was five years ago. Not
are stock prices far higher than ever before; but also,
prices are now abnormally high in relation to (a) earn-

relation to sales volume than has been
years.
It appears unlikely that Gross
any smaller five or 10 years from now

employment

decrease

a

Now

South.

.

above.

TODAY'S

a
decrease in output per manhour
level. Actually, it appears probable
all three of these factors will increase rather than decrease.

in

decrease
or

F.

securities

at

'

compared with prewar. Five years ago, stock
only 59% above prewar, whereas now stock prices

(b) dividends, (c) national income, (d) liquid savings of in¬
dividuals, and (e) the relatively permanent changes which have
been caused in stock prices in the United States and also in other

(Special to The Financial Chronicle)

Minn. —Louis

it

ago,

years

ground historically, the figures quoted above indicate that current
stock prices are still below normal in relation to (a) earnings,

than the United States

David

five

as

1950

From

serious

Forms Atomic Funds Serv.
CLOUD,

251%

least

at

stated

Second World War would cause
84% in the range of fluctuation for
the

that

problems; but it is interesting to notice that stock prices
in European countries are considerably higher than they were 12

Co.,

Zero Court Street.

ST.

of

increase

an

J

As

VIEWPOINT:

reasonable

seemed

will be

to notice that during the years

Joins Keller Bros.

,

the First

as

now.

TODAY'S

and, accordingly, there probably will be no de¬
cline in the total sales volume of corporations.
It is not possible
to have a decrease in Gross National Product unless there is a

toward
—

Since the Second World

increase of 84%.

in the 10 years before World War II the average level of
was 131
(in terms of the DJIA); and it is only 59%

higher

now

Gross National Product

growth of population.

(Special to The Financial Chronicle)

Mass.

is

an

market

Output per man hour will increase with increasing use of ma¬
chinery. Total employment will probably increase because of the

With Eaton & Howard
BOSTON,
Hawley, Jr.

This

billion.

u

first pub¬

were

War, it could be logically argued that it should have caused
increase in the range of fluctuation of more than 84%.
How¬

it is today;

than

that

Rae, 449 Main Street.

$380

.

prices

World

last

•

is

stock

War cost the United States above five times as much

roughly proportional to changes in the sales volume of corpora¬
tions.
Accordingly, it appears that profits of corporations are

National Product

Two With Lincoln McRae

of

Changes in

(Special to The Financial Chronicle)

Ky.—Udell Sul¬
livan is with W. L. Lyons & Co.,

;

Gross National Product

Industrial

Article:

1950

they averaged 85.3,

In other words, stock prices
are now 164% above the 30 year average, whereas Gross Na¬
tional Product is only up 130%. This means that stock prices
are
now
abnormally high; because for several good reasons
the long-term upward trend in stock prices has been normally
less strong than the trend of Gross National Product.

Co.

LOUISVILLE,

rate

j

higher than the 30 year average.

ing?

With W. L. Lyons

VIEWPOINT:

TODAY'S

in market¬

permanent revolution

:Cy;~

years.

corporations.

f,

decline of

turers

rash

books oi

^

From

only 18% would bring corporation profits down to the same per¬

be

the

on

licly quoted in 1871, and since that time there has been a longterm upward trend in stock prices.
In the 10 years before the
First
World War,
1905-1914 inclusive, industrial stock prices
averaged 46.4. In the 10 years after that war, 1919-1928 inclusive,

billion, but

grocery

ground alone; there have been
offsetting gains in raising the ef¬
ficiency
plane
of
competition.
Should we not give the Act par¬
tial credit for touching off
the

>

placement cost is 365, a difference of 85%. This might justify
a
rise in stock prices of 85%; but stock prices have risen

Before

States.

and

years;

much higher

Dobbrow & Vance index of replacement costs
averaged 197 for the latest 30 years whereas the current re-

Gross National Product is 117%

the last

are

164%.

1941 Gross National Product had never exceeded $107

the current

prices

Tompleton,

.

United

Share

VIEWPOINT:

Table 2 shows that the

a

the

the

than usual in relation to the average net worth per share

stated

general opinion today
that current earnings
(and dividends) are abnormal.
In fact,
there are some people in Washington who say that current earn¬
ings of corporations are excessive. This is not a fair statement.
It would be just as reasonable to say that current wage rates are
excessive.
Average earnings of factory workers have risen from
a
minimum of $15.96 weekly 18 years ago to the current rate of
$57.50 weekly, which is an increase of 260%. The increase in
earnings of corporations has been roughly the same as the in¬
there is

in

TODAY'S
now

yield today is 3.63% on Standard &
At current dividend rates, stocks would yield

Of course,

years.

not be

ment costs for the last 28 years was 161.6, whereas the current
replacement cost is 282.3, a difference of 75%. Since replacement
costs are 75% higher, it is not surprising that stock prices should
be 45% higher as stated above.

average

'

24

dollar, the Templeipn, Dobbrow & Vance index of replacement
is given in Table 2. The average for the index of replace¬

also,

dividends,

'

average

costs

stocks

From 1950 Article:

the

'

5.00%, which is the average of the last 30 years, if the DJIA

the

as

caused

Furthermore, because of the inflation which
cost of buildings and machinery, the assets
replaced for the figures shown on the corporations'
books.
Based on earnings retained in excess of dividends and
modified to allow for changes in the purchasing power of the

industrial stocks has -

to

the question,

occurred

Those giant

Robinson-Patman

of

industrial

relation

approach

'

could

but the average yield today

In

to

way

last

high. The average yields from divi¬
has been 5.00% for the last 30

are now very

but the

on

range

prices

years;

quality improvement
are so highly praised by critics of
the Act have had little to change
in their selling policies because
of the passage of the law.
They
rarely gave, although they more
often benefited from, sizable dis¬
counts not justified by cost. That
the

stock

has

if the DJIA were 283.

years,

Another

has

of divi¬

consider the subject

us

Article:

the

stock

earnings,

to

is
rates, stocks would yield 4.90%, the

VIEWPOINT:

Act?

manufacturing companies whose
dynamic research policies and em¬

phasis

of the last 30

TODAY'S

to

let

years;

At current dividend

average

on

industry refers to

"chaos" of the 1930s.

for the last 30

dends

return

Next

The average yield from dividends on

4.90%

grocery

big
to

1950 Article:

repeal

Patman

the

of

any,

-

relation

In

very

Meanwhile, the Dow-Jones Industrial Average has
risen from 208 to 460, which is a rise of 121%. The figure of
388 for stock prices mentioned five years ago looked very high
indeed at that time; but now stock prices have not only
reached, but exceeded this figure by 19%.

advocate

unequivocal

and

open

to

now

1950

net worth per share stated on the
books of corporations to increase 76% in the last 15 years. The
present book value per share is 46% higher than the average of

1950.

year

sion would ruin them—that would
come

VIEWPOINT:

This

high. It now appears that earnings for
will be just about 15% more than they were in the

are

this year

ex¬

'

Is there any

an

Z

„

part of earnings and the other part which is retained adds to the
assets per share and increases the normal future
earning power.

fact, if stocks should sell now as high in relation to
earnings as has been normal for the last 30 years, then
the DJIA would be 388.

tent, unfair squeezes: local price
cutting by large concerns able to
the difference elsewhere,
and concessions to powerful buy¬
ers not justified by differences in

today

,

"how high is the stock market," is to study the value of the assets
back of these stocks.
Corporations pay out in dividends only a

In

mars.

make up

cost.

High Is the Stock Market

current

has

rubber tire marketing.

or

assets held
From

How

had this effect in gorceries, gaso¬

line,

1955, stock prices increased 121%, whereas liquid
by individuals increased only 18%.
'
<
V;*

from 1950 to

9

page

25

field, it might conceiv¬

ably cause harm.

is

from

trying to

been, and probably could not be,
enforced in this way. Consistently
misused, the Robinson-Patman

there

Continued

(993)

liquid assets in the hands of individuals. • In the five years
#

♦

,

26

The Commercial and Financial Chronicle

(994)

Continued

from

9

page

Continued from first page

.;

Canadian Securities
than
in

United

the

institution

single

other

any

expediency above either military security or
stability of the nation."
If the Congressman's reputation for being able to
make his own arguments were not so well established,
one
might almost suspect that he had been re-reading
some of the arguments
made against his plans in 1953.
What he is now saying is almost literally what he was
being told at that time. But the legislator does not fail to
apply his newly adopted philosophy to peculiar present
day developments. He is far too good a politician to fail

Over

States.

many

have recognized the
growth potential of Canadian in¬
years

we

dustry and, as a consequence, we
have today become the largest
Canadian

for

market

securities

outside of Canada. As of the end
of

1954,

trading on

were

we

our

exchange 95 stock issues of Cana¬
dian companies, and the volume
of trading

1954,

"Until the Soviet

leader.^ back up the protestations of
friendly intention with definite, concrete evidence of their
willingness to seek a peaceful solution to international
tensions," Mr. Reed says, "the American people must
maintain a healthy skepticism toward what may prove to
be only another propaganda trick. In the meantime, there
is little immediate prospect of any substantial, reduction
in military expenditures. Until that day comes, we should
not become overly optimistic about substantial tax cuts."

in these securities, in
to 41,596,955
25%

over

or

of

entire

our

volume for that year.
Our governments and

the brok¬
other securities organ¬

erage and

izations

in

both

countries

are

continuing tp do their utmost to
put a stop to malpractices. It is

probably too much to expect that
the problem will be
completely
solved, since the brazen amorality'
of

certain

dealers

is

more

by
the
gullibility
of
American citizens. But, it
is important to pursue our work

We

many

to

reiterate

in

this

constantly

the
buying

he
he

securities

complex

exchanges

anyone

else thought it

the Administration

show any warrant

with

come

properly,
efficacy.

however, leaves

problem. Legisla¬
tion, expensive as it is to enforce

bv

the

year

securities

means

education

or

the

can

go

a

long

way

States

toward eradi¬

the

existing evil and to¬
assisting this great nation of

ward

(Special to The Financial Chronicle)

LOUIS, Mo.—Mrs. Roma M.

Lister has been added to the staff
of Reinholdt & Gardner, 400 Lo¬
cust

Street, members of the New

York

and

Midwest

Stock

Ex¬

changes.

Resnick With Vickers
(Special to The Financial Chronicle)

BOSTON, Mass.—Allan Resnick
has become associated with Vick¬
ers

Brothers,

Mr.

Resnick

80

was

Federal

a

shortage of far

more

than nominal pro¬

Street.

previously with

the institutional department of B.
C. Morton & Co.

more of good fortune than good manage¬
It v/ould have been quite impossible but for the
a

if matters

result

are

of steel

Jackman

put upon

a

really statesmanlike basis.

Take the New Deal Out!

Chamber

ticularly.

the freight car

capacity of the entire industry will be at an average of 93.8% of
for the

93.4% (revised) and 2,255.000 tons a week ago.
The industry's ingot production rate for the weeks in 1955 is
based

on

Richard

J.

duction

2,157,000 tons.

of Jan.

needed, but it left untouched this basic attribute of the
system which

Mass.

—

Joanne

now

of

H.

L.

has joined the staff
Robbins & Co., Inc., 40

Pearl Street.

LOUIS, Mo.

—

William

in
G.

Joins Hegeman Staff
(Special to The Financial
Chronicle)

of

Hegeman & Co., 300 Main St.




far

more

The

Duncan is conducting a securities
business from offices at 707 Mar¬
ket Street.

STAMFORD, Conn. — Frank J.
Fuller has been added to the staff

a

-

fact

The percentage

1, 1954.

Over the next 15 years steel producing

capacity will rise 50%,
require an expenditure of at least $15 billion. The present
ingot (raw steel) capacity of 125.8 million net tons will climb to
185 million tons. That's the composite of thinking of steel company
presidents polled by Steel.
of

million

6^

in

tons

the

next

15

increase of four million tons.

Over the
increase has averaged only 2 million tons, and
big" expansion periods of World War II and the
the last 15 years—the greatest period of growth
only 44.2 million tons were added.
average

years

means

an

last 40 years the

that includes the
Korean War.

In

in the industry—
*

The expansion already is under way,

fanfare.

no

although there has been
alone—Republic Steel Corp., with head¬

One company

quarters in Cleveland—will add

one

million tons to its capacity

in 1956.
A surge

in the expansion will

come in the early 1960s to meet
big increase in the number of families at that

the demands of the

time.

Family formations

are

due to increase in the 1960s, when

people born during the high birth rate years of the 1940s reach
marriageable age. In the latter part of the 1960s, the number of

people reaching marriageable age will be 50% greater than it is
now.
Now, 10,775,000 people are 20 to 24 years, old. In 1965, there
will be 11,282,000 and in 1970, 17,299,000.
Here's

formations

family

why

are

so

important:

Take

six

people (a man, his wife, four children). They need only a lawn
mower, one refrigerator, one kitchen stove and probably only one
automobile. But suppose the same number of people are three
couples just getting married. Each couple, "Steel" points out, will
a lawn mower, a refrigerator, a kitchen stove and an auto¬

f need

mobile—all of which take steel.
Not

only will the increase in family formations be

a

factor in

spurring steel expansion, but so will the growth in total population.
The nation's population now 165 million, will be 176 million by
1960 and 196 million by 1965.
of

has

There

living.

been

bounded

addition

depleted.

our

rising

Today, it is

the

north

by

the

Great Lakes,

on

the south by the Ohio River and

on

the
on

Mississippi.
to

spending $15 billion for 60 million additional

steelmaking

capacity in the next

replace existing facilities

to

is

districts in the country will see
but the bulk of it, says "Steel," will be in

on

by Pennsylvania,

tne west by the
In

expansion

steelmaking

present

of the expansion

region

east

steel

In 1900, it was 556 pounds.
By 1970 it should be 1,888 pounds.

1,537 pounds.

or

a

a

The better we live the more steel it takes.
constant per capita growth in this country's

capacity.

steelmaking

the

influencing

factor

third

A

standard

as-

15

years,

they

the industry

become obsolete

The average useful life of present ingot capacity is

reckoned at 25 years.

"Steel" Weekly Predicts Record Breaking Expansion
in Nation's Steel Industry

suffer

ourselves that

W. G. Duncan Opens
ST.

capacity in 1955.

annual capacity of 124,330,410 tons

on

owes

by President Roosevelt and his followers. Here,
too, we should be unrealistic to hope for real progress in
an election
year, but it does no harm to keep reminding

W. Glaubach

based

are

and

its origin to politicians long antedating
the New Deal, but which was
brought to the extremes we

With H. L. Robbins
WORCESTER,

a

ago

"Steel," the Metalworking Weekly says that a record-breaking
expansion in the nation's steel industry is just beginning.

have

Co.

year

because capacity was lower than

figures for 1954
as

will

&

A

1, 1955.

89.4% and pro¬
the actual weekly production
was

placed at 1,502,000 tons. The operating rate is not comparable

was

of

Buck

annual capacity of 125,828,310 tons as of Jan.

an

For the like week a month ago the rate

some

"soaking the rich." The 1953 over¬
good deal for our tax system that was

beginning Sept. 5, 1955, equivalent to 2,and steel for castings as compared with

week

of ingots

tons

tons

Company,
Building.
formerly with

Institute announced that the op¬

erating rate of steel companies having 96.1% of the steelmaking

haul doubtless did

was

associated

building program.

The American Iron and Steel

the New Deal notion of

become

Raymond

Plates, par¬

threatening to become a bottleneck that will affect

are

Securities

of

Mr. .Jackman

P.

Industry

But with the outlook what it

is, there's a chance that more industries will be hurt.
One of the hardest hit industries is the railroads.

Commerce

has

Bristol

—

4

far between.

few and

are

Scarcely less important than more prudence in public
expenditures, is a thoroughgoing overhaul of the basis of
our Federal tax
system for the purpose of taking out of it

BOSTON, Mass.

page

election uppermost in the minds

The State oi Trade and

-All

Joins Bristol Sees.
(Special to The Financial Chronicle)

with

from

Addition

hope to which only the future can give
The improvement in the fiscal picture this

gree of precision. But it is at least a question whether our
prosperity can continue at the present rate without some
such stimulus as that mentioned; that is to say, continue
for another 18 months or two years—which it would have
to do to support the sort of tax reductions that are now
apparently in contemplation.
What is really needed in this field of fiscal policy
could, of course, proceed without delay and with benefit
to us all, but in that the
politicians are not greatly in¬
terested, particularly with an election in the offing. We
need, first of all, much more substantial reduction in out¬
lays, and this could be done without crippling defense.
Arguments to the contrary assume many categories of ex¬
penditures to be untouchable, which they probably are
speaking politically, but which they are most certainly not

of the world.

With Reinholdt & Gardner
ST.

opposition is able to

extraordinarily free mortgage and consumer credit, it
would at this time be difficult to say with any great de¬

Canada to fulfill her promise of
prominence among the industrial
powers

the

developed in general business—to the sur¬
prise of many and, we suspect, of the Administration
itself. So far, so good, but the prosperity we now enjoy
can
scarcely be regarded as wholly free from inflation.
Just how far it has erected itself upon a foundation of

and the Provinces. In this way we

cating

evidence that he will be effective when Con¬

more

Continued

boom that has

investor

mass

throughout

is

ment.

industry of both countries, that we
must discuss and,decide upon ef¬
fective

nor

was a

real substance.

States and Canada and by leading

of

wise thing to do, Congress
Politics being what they are,
a

The rest is

securities authorities in the United

representatives

find

was

gress assembles with an
of most of its members.

portions.

at

this,
principal

the

up

estimate of the

only be of limited

in

of the most

heartening reduction in the official
deficit for the current fiscal year, which,

solution of this

participated

one

in the fiscal picture for tax reduction.
Secretary of the Treasury was able to

The most that the

ultimately bontribute most to the

It is at conferences such

George,

replied to all this to the effect that, whether- or not
or

neither

dealer associations. It is my belief
that wide investor education will

can

t

264,000

it is difficult to take issue with the honorable Senator. Yet

broker

or

certain that Senator

will reduce taxes next year.

field Only with persons they know,
or who are members of recognized

reputable

are

Cynical

respected and influential members of the United States
Senate, intended to be realistic rather than cynical when

need
for
the
potential
populace of both our countries to
deal

at present.

case

support the ideas of Representa¬

thought that he, consciously or un¬
playing into the hands of small minded
politicians. We gladly lend our support to his general posi¬
tion at this time, and add only the wish that we could
consciously,

capacity

Realistic Not

than

matched

and

larger incomes than is the

not able to

to do that.

amounted

shares

were

tive Reed in 1953. We

economic

Canadian securities

confidence in

We

political

investor

with

concerned

vitally

system will not in appreciably larger degree fall upon

individuals with

It

We See

As

Thursday, September 8, 1955

woijld be surprising indeed if the impact of our income

r\v;:;

tax

Creating Confidence in

...

some

day

we

shall have to face this problem

realistic way than we have yet done.
of

the

matter

is

that

the

real

political
struggle next year will not be over the question as to
whether taxes shall be
reduced, or over any effort on the
part of anyone to distribute the tax burden more equita¬
bly. It will be to prevent more of the New Deal notions
from being Injected into our tax
system. Demagogues have
been well occupied for a good while
past in laying a basis
for helping, or
pretending to help, the little fellow. It

In its regular

weekly

news

release, "Steel," the Metalworking

Weekly, declares, that by the end of this month, the steel industry
will have produced almost as much steel Las year as it did in all
cf 1954.

The 1955 output
net tons of

through September should total 85.5 million

ingots and castings. Last year's production was 88,311,-

652 tons.

be

August's output was about 9.5 million tons. September should
little better than that, probably 9.7 million. Add those two

a

months to

the aggregate for

tons—and you
year,

end

the first seven months—68.3 million
At the end of September last

get 85.5 million tons.

ingot production totaled 64,233,619 tons.

September started with the highest weekly ingot rate since the
of July—92.5% of capacity. This is a 2.5 point rise over the

*

•

f

Volume 182

Number 5462

.

.

.

The Commercial and Financial Chronicle

(995)
preceding week.

It reflects restoration of production in the flood-

stricken East and cessation of
Steel demand is

a

brief at

a

strong enough to prompt

some

mills to begin

malting preliminary allotments for the first quarter of 1956.
New

the price front are quotations for the new chromium-

on

nickeLmanganese stainless steels—types 201 and 202.
for

in place of 301 and 302 to„ conserve nickel,

use

much

as

2 cents

Developed

they sell for

a gross

a

ton.

According to Ward's Reports
and strikes

This

Trading in the 14
totaling 129,900
bales, compared with 125,200 a week earlier, and 145,200 in the '
corresponding week a year ago. Disappearance of all kinds of

cotton in

a

43-week low in domestic motor

recorded this week due to, model change-:
the labor front.

was

on

automotive

agency

counted

15,293 truck completions this week,

86,182

passenger

cars

and 24.2%

33.5%

a

Colonial Aircraft

the United States in the 1954-55

season

A

sharp drop this week following mild declines in the two
preceding weeks brought the Dun & Bradstreet Wholesale Food
represented
1953

when

decline

Aug. 30

$6.15, from $6.21

to

year ago, or a

new

This

low for the

was

a

it

week earlier.

a

$6.13.

year and the lowest since Feb. 3,
It compared with $6.65 at this time a
decrease of 7.5%.

Commodities

quoted higher this week included
and cocoa. Lower in wholesale cost

corn,

oats,

butter, coffee,
were
flour,
wheat, rye, hams, bellies, sugar, cottonseed oil, tea, eggs, potatoes,
rice, raisins, currants, prunes, steers, hogs, and lambs.
The

Dun

&

!

Share

a

Glick &

Co., Inc., is offering as
speculation 300,000 shares of

a

Wholesale Food Price Index
Dips to New Low for Year

and

from the 129,501 and 20,183 recorded last week.
The combined total of 101,475 compared with 149,774 last week
and was t e lowest since late October of 1954 when model change-

Stock at $1

reported at

was

12,395,000 bales, the smallest volume since 1947-48.

Price Index for

vehicle production
overs

well behind last year's volume.

as

pound less. But they don't affect "Steel's" price
composite on finisned steel. It remains at $127.41 a net ton. Also
unchanged is "Steel's" price composite on steelmaking scrap at

$43.83

tinued to lag

markets continued to increase with
reported sales

Detroit steel mill.

27

Colonial
stock

Aircraft

at

Corp. common
price of $1 per share.

a

Net proceeds from the sale of
the stock will be available to the

for general corporate
to meet working capital

company
purposes

requirements
of

Civil

the

for

Aeronautics

completion
Administra¬

tion certification; for the purchase
of
additional
machine
tools,

equipment and materials for

pro¬

duction

Am¬

of

the

"Skimmer"

Tuesday-Wednesday this week, joining Packard,
Nash, Mercury Dodge, DeSoto and Chrysler in model changeover.
Meantime, Dodge truck output was halted this week by in¬

Its chief

phibian; for rent, insurance, utili¬
ties, wages and salaries of em¬
ployees and for sales promotion.

function is to show the general trend of food
prices at the whole¬
sale level.

Colonial Aircraft Corp., with its
principal office at the Deer Park

ventory taking, Ford eased off for changeover and International
was crippled by a strike resulting from termination of

Department Store Sales Climb 9% in Week Country-Wide

(Long Island, N. Y.), airport, was
organized for the purpose of en¬

overs

held

weekly production to 87,403.

The statistical agency said both Ford and Plymouth ended '55
model production

Harvester
its labor

contract, knocking industry volume to

a

26-week low.

Ward's estimated August U. S. production at 609,000 cars and

96,400

trucks and said the industry
104,000, respectively, for September.
The weekly publication

is

projecting

471,000

and

in

roar

cars

added that plans for

and trucks

are

proceeding

a

on

Canadian output last week was placed at 3,700 cars and 1,252
trucks.
In the previous week Dominion plants built 4,102 cars
and 1,357

The amount of electric energy

distributed by the electric light
power industry for the week ended Saturday, Sept. 3, 1955,
estimated at 10,706,000,000 kwh., according to the Edison In¬
week's

that of
the previous week, when the actual output stood at 10,906,000,000
kwh. It increased 1,619,000,000 kwh., or 17.8% above the compar¬
able 1954 week and 2,012,000,000 kwh. over the like week in 1953.
Car

above that of 1954.

creased 11,114 cars, or

freight for the week'ended Aug. 27 in1.4%, above the preceding week.

Business Failures Increase
Commercial

and

industrial

Moderately in Sept. 1 Week
failures

rebounded

to

215

in

the

week ended Sept. 1 from 180 in the

preceding week, reported Dun
While failures exceeded t.:e 193 in the similar
week of last year and the 178 in 1953, they remained slightly be¬
low the 229 in prewar 1939.

The

The

Failures with liabilities of $5,000 or more
week

ago

and

were

above the

climbed to 181 from

168 last year.

Among small

failures, those with liabilities under $5,000, there was a slight rise
to 34 from 31 in the previous week and 25 in the comparable week
Sixteen of the failures had liabilities in

Wholesale

excess

of $100,000,

Commodity Price Index Advances

Following the downtrend in the first half of the month, the
Daily Wholesale Commodity Price Index, compiled by Dun &
Bradstreet, Inc., extended the mild rise of the preceding week to
register 275.68 on Aug. 30. This contrasted with 274.55 a week
previous, 273.02 two weeks earlier, and 273.04 on the correspond¬
ing date last year.

such

irregular and fluctuated over a wide range
Following marked weakness in the first three
weeks cf August, corn recovered and moved sharply higher in the
latter part of the week.
Generally hot, dry and sunny weather
was
said to have caused a material shrinkage in prospects for
the new crop in the best sections of the
belt, with more rapid
deterioration

reported in the less favored sections.
Cash corn
independent strength, reflecting good demand and cur¬
tailed country offerings. Oats followed the lead of corn and rose
slightly. Wheat was irregular and lower with demand from mills
and exporters continuing light. Reports from Canada indicate the
showed

about

"Herald Tribune"

improvement

month

is

harvest

is

progressing rapidly with little
Sales of grain and soybean future

rain
on

to

the

hinder

Chicago

of Trade declined slightly.
Daily average sales totaled
57,300,000 bushels, compared with 59,600,000 the previous

week.
After

holding steady most of the week, cocoa prices also ad¬
vanced sharply at the close, influenced
by the devaluation hews
from Brazil. Warehouse stocks of cocoa rose to 255,330 bags, from
242.885 a week earlier, and compared with 104,429 a year ago.
Domestic raw sugar prices eased slightly while the raw market
strengthened as expected purchases by Chile, Germany and Japan.
Lard developed a firmer undertone late in the week,
reflecting
stronger vegetable oil prices.

Spot cotton prices moved lower this week with weakness
attributed to generally favorable crop weather and the approach of
the heavy marketing period. Farmers were

offering: cotton rather
freely in most country markets and demand was centered chiefly
in medium-staple southeastern growths.
Exports of cotton con¬




was

August

Connie

on

on

authority for the state¬

it

been

not

business

given

was

for

been

these

appreciably higher.

substantial

a

unfavorable

the month having one more

boost,

pro¬
The company

aircraft.

of

has

designed, built and success¬
fully flight tested the Model C-l
"Skimmer"

Amphibian

completed

the

to

necessary

has

and

structural

obtain

the

tests

required

Civil

Aeronautics

Administration

Type

Certificate.

In

of

Amphibian
tion

as

domestic

the

in

has

potential

and

a

export
because of
an

as

exists

that

fact

applica¬

airplane

well

as

opinion
"Skimmer"

military

liaison

a

the

the

management,

there

Diane, which made August the wettest

Had

record.

during August

realized despite the fact that the month
record and despite the unwelcome visits

and

developments, sales would have

August

in

no
country is
single-engined amphibian

a

production at this time.
Capitalization of the company,

issued

and
outstanding, consists
308,533 shares of common stock

of

of

$1

value.

par

though, by

shopping day than it did a year ago.
sharp pick-up in business during the first three days of this
also helped the month's
showing. Last year at "this time
Hurricane Carol was a disturbing factor and deterred
shopping.

General American

A

week

Retail Trade
Cool weather and

trade

this

week.

Certificates Placed

extensive sales promotions increased retail

The total dollar volume of retail trade in the week
ended last

1 to 5% higher than a year ago, according to esti¬
mates by Dun &
Bradstreet, Inc. Regional estimates varied from
the comparable 1954 levels
by the following percentages: New
England —1 to —5; East and Northwest +1 to +5; South +2 to
was

+ 6;

Midwest 0 to +4; Southwest
to +7.

+6 to

-f-10; Pacific Coast -f-3

appreciably. Mod¬
room furniture, bedroom suites, and cocktail tables were
the best sellers. There was an increased demand for dinette

living

sets and small end tables.
sets

and

radios

declined

A moderate rise in the sale of television

noticed.

was

Air

conditioners

and

refrigerators

in

popularity, while small electrical appliance sales
Towels, pillow cases, and other white goods were in
high demand.
mounted.

stores

noticed

a

considerable

American

sold

Transporta¬
on Sept. 7
through Kuhn,

to

small

tion

Corpr announced

that

it

Loeb

has

&

Co.

a

group of
two series

institutional

investors,

of

trust
certificates,
$21,209,500 principal

equipment

aggregating
amount.

Included

$11,209,500

are

of

in

this

3%%

total

certifi¬

cates, series 54, due in quarterly
installments to and including June

The sale of household furnishings increased
ern

General

Consumers

responded well to promotions of
merchandise, raising the volume of sales to a level consider¬
ably higher than that of the corresponding 1954 week.

Wednesday

Transportation Corp.

Up 1 to 5%

Fall

increase

in

sales

1,

1975,

terly

$10,000,000

and

certificates,
to

series

and

55,

of

3%%

due

quar¬

including

1,

Sept.

1975.

The

equipment covered by the
consists of 2,262 new
railroad freight cars."

two

trusts

jm

this

With

week, and the volume of trade considerably exceeded last year's
level. Consumers were more interested in Fall
clothing, but the
high level of Summer sportswear buying was maintained. Women's

Zilka, Smither

(Special to The Financial Chronicle)

PORTLAND,

Oreg.—Willard J.

Redus

has become affiliated with

items.

Zilka,

Smither

ably.

Southwest Alder Street,

was

of

coats

and

woolen

and

dark

cotton

dresses

were

the most popular

Selling of back-to-school and infant clothing rose notice¬
Men's dress shirts and other furnishings sold well. There
only a slight increase in the sale of men's suits and coats.

the

San

&

Inc.,

Co.,

Francisco

813

members

Stock

Ex¬

change.

Bookings Steady
The

were

during the week.

operations.

registered

gaging in the designing and
duction

sales

Apparel

Moderately in Week

Board

York

of Hurricanes

against 13 last week.

wheat

New

the hottest

was

Bradstreet, Inc.

Grains

was

'

Business in New York City's
department stores
7.5% over the like 1954 period.

rose

among

as

repre¬

foodstuffs

According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Aug.
27, 1955, are 4% above that of the like period of last year.

revenue

'

of 1954.

raw

cost-of-living index.

a

period Jan. 1, 1955 to Aug. 27,
1955, a gain of 7%

Loadings Increased 17% Over the 1954 Week

Loading of

a

pound of 31

per

or 3% more than the like period of last
year.
preceding week. Aug. 20, 1955, a drop of 3% was registered
that of the similar period of
1954, while for the four weeks
ended Aug. 27,
1955, an increase of 6% was recorded. For the

output decrease 200,000,000 kwh. below

Loading of revenue freight for the week ended Aug. 27, 1955,
791,977 cars, the Association of American Railroads anbounced, today. This was an increase of 115,279 cars, or 17%; above
the corresponding week in 1954, but a decrease of 26,484 cars, or
3.2%, below the corresponding week in 1953.

149

price

It is not

from

totaled

&

the

Index

27, 1955, increased 9%

weather

stitute.
This

of

Price

ment that:

Electric Output the Past Week Declined Moderately
Below the Level of the Previous Week

was

total

sum

Food

Department store sales on a country-wide basis as taken
from the Federal Reserve Board's index for the
week ended Aug.

trucks, and for the comparable 1954 week 1,740 cars and

401 trucks.

and

the

and meats in general use.

Wholesale

In the

fourth-quarter
schedule, with
high used car sales absorbing the heavy flow of stocks from record
new car sales, and with truck inventories
having successfully been
held in check during the industry's May-July peak selling period.
output

sents

Bradstreet

volume

of wholesale

maintaining

a

1954

Inventories

week.

orders

moderate increase
in

some

remained

steady this week,

With Foster Bros. Weber

the level of the comparable
lines were decreased as a rsult

over

(Special to The Financial Chronicle)

TOLEDO,

of the

high level of re-ordering and production difficulties caused
by the recent flood damage.
Apparel

manufacturers

noticed

an

increased

re-ordering of
stocking coats, women's
suits, and knit dresses in preparation for early Fall sales promo¬
tions. There was a marked rise in the buying of back-to-school
items; children's sweaters, boy's slacks and flannel trousers were
Fall merchandise this week.

extremely popular.

Retailers

are

The recent flood damage to

many

Hibbert

241

to

W.
the

Superior Street, members

of

Two With B. C. Morton

New Eng¬

(Special to The Financial Chronicle)

BOSTON, Mass.—Paul A. Cam-

and William W. Mobilia
joined the staff of B. C. Mor¬

posano.

The volume of trade in the textile market expanded
There was a moderate rise in cotton gray cloth
trading;

drills, print cloth, and sheetings

were

in high demand.

of carded weaving yarns remained at a

high level.

slightly.
narrow

have
ton

corduroy trading.

lightweight coating fabrics.

slight decrease in food buying at the
was substantially above
that of last year in most major food markets. Moderate decreases
were
apparent in the ordering of vegetables, poultry,, and fresh
meat.
The demand for cantaloupes, apples, peaches, and lemons
increased slightly, while a moderate rise in activity in the dried
apricot and raisin market was noticed.
The dollar volume of
butter and cheese remained steady.
there

was

a

Co., 131

State Street.

Dean Witter Adds

Increased retail

the dollar volume of flannel and
Manufacturers noticed an increased interest in

week, the

&

The buying

selling of Fall clothing raised

Although

added

Exchanges.

possibly delay* deliveries

end of the

been

the New York and Midwest Stock

land woolen mills is expected to curtail somewhat the
production
of many lines of Fall merchandise, and
to retailers.

Ohio—Frederick

has

staff of Foster Bros., Weber & Co.,

(Special to The Financial Chronicle)

PORTLAND,
R.
&

Schiedel

is

Oreg.
with

—

Kenneth

Dean

Witter

Co., Equitable Building.

tothl volume of trade

With Palmer,

Pollacchi

(Special to The Financial Chronicle)

BOSTON,

Mass.—Paul

J.

Ken¬

nedy is now with Palmer, Pollac¬
chi & Co.., 84 State Street.

23

The Commercial and Financial Chronicle

(996.)

Illinois Co. Adds

t

Sales

at the close of

August, amounting
$254,888,090,
up
$30,472,477
since the 1954 year-end.'

to

(Special to The Financial Chronicle)

CHICAGO,
Clarke

is

111.

Kenneth

—

with

now

the

Mutual Funds

G.

Illinois

Company, Incorporated, 231 South
La Salle Street, members of the
New

York

and

Midwest

Group Now Near

By ROBERT R. RICH

Stock
of

Stocks for Income

mutual fund, the

jective of which ie
investment in
of

primary obprovide

to

an

ties.

[

common

cause

of their

yield

a

relatively high

The

and

This

j

the

is

International

regard to the risk involved. Prospectus
and (other information
may be obtained from your in¬

j

vestment dealer or:

created

Securities

of

sources

Rudolph Hecht, New

third

in

announcement

recent

weeks

Investors,

and

Inc.

International

Canada

Fund.

The latter has

such

of

Fund,

of

Natural

Re¬

$5,000,000, and

,

.

.

of

Established 1930

5, New York

harbingers of what

are

entirely unexplored

an

The idea of

ness.

course

area

be the opening up

may

for the investment company busi¬

is not new, but has

been

British stand¬

a

by for centuries.
The

development is revealing in showing as it does what a

powerful and flexible technique the investment
the

pooling of shareholder's money, the

agement, and the assault

Dividend Announcement

vestment

EATUIV &• HUM/Aim

BALANCED
15

CENTS

A

is

some

EATON &• HUWAIUI
STUCK
CENTS

Dividends
ers

There

are

tax

Mexico, whose Central Bank
high-grade

own,

paper

these

Take

IJuurlerly llividrnd

payable Sept.

built, is

6%;

pays

countries,'demand deposits

6%; and

pay

In England, the bank rate, upon

now over

4%, and in Germany,

6%.

near

developments, add the possible development of

24 to sharehold¬
Sept. 12, 1955.

fund for municipal

mutual

a

bonds, and it is clear this business is

In

ing

ey stone

vestors, all
The

Custodian Funds
BOND, PREFERRED AND

tematic

more

Company

account

your
ten

Funds.

prospectuses

the

(at

more.

or

many

shareholders

investments

ration

:...

a

sys¬

on

of

or

to

or

Under this plan,

Trust

full

will

and

ii

as

may

shares.

fractional

in

name

of

ton

for

a

more

Last

National

Securities Series of

investment

E.

Wain

Hare,

Corporation
the

first

this

trust

an

Net

assets

the

frac¬

account

shareholder,

Corpo¬

is

begin¬

charitable,

religious,

other

educa¬

institutions

ex¬

empt from taxation under Section
501c3

as

of

the

Internal

Revenue

purchases

reinvested

shares

over

be

for

total
a

the

of

aggregate

the

fund's

13-month period.

to

funds

it

new

split

be

made

investment

securities

the 70

among

industrial

Diversified Investment Fund, Inc.

31, 1955

President

have

recommended

cause

"the

make

the

venient

Isaacs

the

fund

a

more

con¬

medium

for

investors."
effect

stockholders

.

the

and

split stockholders

approve

authorized

increase

an

stock

from

in

5,000,000

shares of $1 par value to
15,000,000
share of 33 y3 cents par value
per

share.

/

Represent
Atomic Fair

or

more

American

exhibitors, in addition
foreign governmental
research

and

con¬

ing

package

,

power

Trade

Industry.
ica's

Fair

the

of

Atomic

The Trade Fair, Amer¬

first

Atomic

marketplace,

will be held at the Sheraton-Park
Hotel in Washington, D. C. from

Sept. 27 through 30 in conjunction
the

.fall

annual

Atomic

meeting

Industrial

of

Forum.

Bengston & Co.'s exhibit will
feature the many and varied op¬
portunities for

investment

in

development of profitable
of

uses

atomic

to

those

for

peace¬

energy

prudent

trol systems
.

.

.

.

.

note

now

com¬

continuing
new

field.

indicating

specialized

spe¬

A

the

a

review

of

the

.

and

sources

.

.

.

.

.

and

medi¬

.

.

.

.

.

process

.

.

.

.

and

particle

reactor

resulting

and

isotope

applications

.

con¬

;

construction

.

fabrication techniques

%

.

.

handling

accelerators

components

and

auxiliaries, in addition to various
consultant services.

•

Among the-industry exhibits' at
the

Trade

Fair

of

Atomic Indus¬

try will be Alco Products; Atomic
Development Mutual Fund; Con¬
solidated

Corning
Wheeler

Nuclear

Edison

Glass

Government
A

r

Co.

of

Works;

N.
Y.;
Foster

Corp.; General Electric;
Consultants, Inc.; Repub¬

lic Steel Corp.

and others.
exhibitors

will

be

National

g o n n e

Laboratory;
Energy of Canada, Ltd.;
Quartermaster Corps; and Brook-

Atomic

haven

professional

number

.

reactor materials

.

instrumentation

chemicals

investors

investment

are

the

.

cal and research reactors

National Laboratory.

atomic

and

Closed-End News

ex¬

tent of corporate losses and bank¬

Consolidated

reports

that

Investment
on

Aug.

Trust

30,

ruptcies suffered in the early days
of the automobile, railroad and oil

total net assets amounted to

1955

$52.74

nonprofit
of

membership organi¬
industry, education and

with

objectives

to

further

800,000.

clared

a

share

from

the
development and full-scaje
application of nuclear energy for
constructive purposes. The Forum

payable

in

an

invitation

to

visit the

$53,-

Per share asset value

was

compared with $37.95 a
year ago, an
increase of 39.0%,
The Trustees on Sept. 1, 1955 de¬

extends

Diversified Growth Stock Fund, Inc.

ngnoi/

of

split be¬
price
should

investment

present

as

the

lower

new

L.

of

shares

devices

labor

companies participating

dividend of

on

45

cents

investment

per

income,

Sept. 26, 1955 to share¬

holders of record Sept. 12, 1955, as

compared with 35 cents per share

September 1954.

Trade Fair to members of the in¬

from Atomic Science.

dustrial, scientific and educational

Prospectuses available

STREET, N. W.

directors

shielding materials

S.

zation

managed investment

UUUC DEVELOPMENT SECUfilTiES CI

Kenneth

that

U.

a

designed to provid#
mm

the

$77,140,420.

were

said

to

The Atomic Industrial Forum is

Manhattan Bond Fund, Inc.

variety of

the

at

industries.

ATOMIC DEVELOPMENT

FUND, Inc.

on

that

effective

tractors, participating in the first

need

f

m m FACTS AND FREE PROSPECTUS

meeting

intended

stockholders and total assets

Aug.

To

dealer

services when investing in

lyg)

is

close of business Oct. 7, 1955. The
has
approximately
19,100

must

peak

a

fund

enterprises, will be illustrated by

I




27,

a

Bengston & Co., Inc. will be the
only

cautionary

a

WASHINGTON 7, O. C

a

are

approve

stockholders'

Sept.

the

of

specialists

cial research in this

Fundamental Investors, Inc.

I®

cial

Fund Industry

the

charge will

w

MM THIRTIETH

ahead

Securities Firm

sharing trusts. In this plan, sales

in

in activities

$38,497,332.

to

Only Dealer There

be required to meet the

MUTUAL FUND.

•

eight months this

rose

requested

both

5%

and

Massachusetts

com¬

and

open

Wellington

distributions

ATOMIC SCIENCE

in

and

sponsors

totaled

high

new

Research

fundi

the

sales

year

which

of

proposed three-for-one stock split.
If approval is received at a
spe¬

Vice-President

of National Securities &

with

'

Stockholders

mu¬

recorded

August sales in its his¬
tory at $4,249,146, a gain of 26%
August last year, according
to

Split Stock

Investors Growth Stock Fund

the largest

through

a

funds

period, asset value
a
share
to

from $10

Three-f'or-One
being

largest in the 26-year
history. August brought
sales for the first
eight months of
1955 up to a total of
$43,478,000.

panies which

is

sales

the

were

available

MUTUAL

month's

old fund's

Code, and for pension and profit-

be

To

new

Wellington

stated
that sales
for both the month of
August and
for the first eight months of 1955

time

t

for

in

the

M. I. T. Growth

Wilkins

certifi¬

letter of intention service

tion,'and

automatically in additional shares.

through

high

scientific fields.

$10.31.

Vice-President.

Mr.

shares

will

closed

of $597,000
invested

were

re¬

to U. S. and

Thirdly,

quar¬

liquidate

issuing

deposit full

stipulated payments. All dividend

it west

total

$5,082,000 exceeded
sales
in
August a year ago by 22%, ac¬
cording to A. J. Wilkins, Welling¬

Mutual

shares

the

ning

—

State

City

a

tion.

of money of $50

sums

of

informal

an

with automatic dividend distribu¬

——

Address

record

invested

organizations

price)

monthly

a

tional
in

shares,

will

pany

who

$10,000

offering

for

of

Instead

cates

16.

Aug.

on

beginning

Fund

terly basis

D 132

Name

Fund

The open
service, to be handled by

way:

withdrawal

withdraw

describing
Organization *nd the shares of your
me

another
money

start¬

four

1955

$100,000,

resources

64%

advanced

Wellington Fund: August marked

Corporation Trust will work this

plan, to be
handled by the Corporation Trust
Company of N. Y., which will
permit present and future Wei-,
have

50 Congress Street, Boston 9, Mass.

is

is

which

During

an¬

services to in¬

effective

fund

lington

COMMON STOCK FUNDS

Please send

9,627,054

plan for those

type of plan, rather than

Wellington Fund this week
new

Fund

31,

formal systematic plan.

For Investors
nounced three

the

investors who prefer

Three Services

*

addition

an open account

reports

first

Aug.

than

more "■»

lated

earlier.

year

a

of 1954.

Street, Boston

Wellington Begins

The Keystone

the

over

ported

previous record for the period es¬
tablished in the first eight months

just starting to go.

of record at 4:30 P.M.,
24 Federal

50%—

Aug. 31, 1954 figure of
$64,608,673.
During
the
same
period, shares outstanding rose to
12,590,908, representing a 30.79%

manages

advantages, too.

SHARE

than

more

the

over

For

FUND
A

In

our

industrials securities, 14 to 25%.

h

$32,407,193—or

over

South American

which all else is

11

than

IJiiurterly lliridrnil

-i

fllilli Htmxmifire

obvious.

are

SHARE

in
94th HonsnutivK

predetermined in¬

Fund

its

in
year, according to Herbertcompanies in the nuclear field and
Anderson, President.
This represents an increase of the remainder in companies in re¬

tual

conservative

more

a

policy.

The incentives

FUND

the goals of

upon

idea is—

company

of professional man¬

use

tle

of

of

million.

off these

ended

August with

fiscal
R.

gain
Eck, Jr.'s

van

Resources

assets

a

&

Corporation

120 Broadway, Now York

Inter-American

Kidder, Peabody & Co., as head underwriter, plans to step this up

All

Research

ring at the

by merger of Natural Resources Fund and

to $20 or $25

National

into

tossed

The other two—mutual funds—are John

company.

ex¬

|

first

was

Orleans banker and shipper.

cur¬

reasonable

idea

Conference in New Orleans last Winter by

j
J

pectance of its continuance with

closed-end investment

new

a

capital from

for

The fund, which began business
early in May with assets of a lit¬

mutual funds and

single industry classes, reports
net assets of $97,015,866 at Aug.
31, end of the third quarter of its

which will iavest in Central and South American securi¬

company

diversified group / I
stocks selected be-

rent

in the process of forming, with

now

are

each, Inter-American Capital Corp.,

through
National Stock Series
a

Corp.

Nuclear

$507,000.

16

Time, Inc., South American Gold and Platinum Co. and Pennroad

five general

&

sales

months

Group Securities, Inc., sponsors

The International Trusts

Investing in Common

Science
gross

$100 Million

Exchanges.

!

Thursday, September 8, 1955

...

fhese

mutual

local

investment

funds

on

through

firms,

or:

HUGH W. LONG AND COMPANY
incorporated

Elizabeth

3,

New

interested
in
the
peacetime development of atomic
community
energy.

Jersey

A survey

of the exhibit plans of
participating organizations indi¬
cates

that

there

in such fields

as

will

be

displays

design engineer¬

Futures, Inc. Reports
The net asset value per share of

Futures, Inc.,

a

commodity mutual

fund, was $3.14 on June 30, 1955
compared with $2.61 on June 30,
1954.
Total assets on the June,
1955 date were $163,466 compared
<C71

QRQ

n

vpar

pnrlipr

Volume

Number 5462

182

Continued from page

.

The Commercial and Financial Chronicle

..

Continued

5

for

91

years,

years,

50

U.

S.

38

from

Attorney Expresses Opposition
Proposed Regulation "A" Amendments

To
spective

have lagged capital gains-wise,

buyers
who

persons

ter.

Nicholas

Moldovsky, economist and author with White Weld

It

ship between earnings and fluctuations of stock prices (published

(e)

This indicates that
long-term such relation exists, although not v«ry

very

But over the shorter intervals, correlation between stock

closely.

prices and current earnings remains

IV.

How Do Stock

not

Splits Affect Market Price?

it is additionally advantageous

including taxation) for the fortunate long-term holder

"split-candidate" stock, who feels it is over-valued, to hold

Or is such

a

Mr.

Atwater

"Chronicle"

writes

Editor, Commercial and Financial

"Chronicle"

Mr.

ber he had

Bab-

W.

Roger
last

that

announced

son

the

in

article

recent

a

Babson

than

a

Decem¬

completed 50 years of

M.

derstood

in

in

1898,

business

that

at

to

time when

a

world

statistical

a

learning

was

owning
unincorporated thea¬
trical productions may own inter¬
ests

in

that

the

several

of the

basis

the

for

Chart

Babson

accomplished while he was
to his bed, but the in¬
ception of the Organization stems
was

from

his

recovery,

basic

the

so

material must have been collected
and

before

selected

There

these

I

ments

Roger W. Babson

of

endeavor.

surprise.

Was there

news

Fifty
ever a

My
was

years

in¬

time when

did not have Uncle Roger and

Chart?

his

Babson's

Mr.

dual

life

has

been

fight: to keep life in
and

body

in

succeed

undertaking.

As
1900

a

a frail
pioneer

young

very

a

a

1905) he
learned that a pulmonary condi¬
tion
would
require rigid treat¬
(about

man

almost constant

and

ment

effect

a

to

cure.

At

care

to

that time only

well-to-do could afford

the

very

the

courses

of

usually

treatment

raised in Gloucester, where

and

married

owned

a

he had
modest

home; he had the will to fight and
no desire to die.
Also he intended
to

make

a

living for himself and

still visualize the
upper
porch of his two-family
home, which he converted into
bedroom, sitting room and office
and where he fought the threat of
his family.

I

tuberculosis
until
A

has

his
man

one

can

winter

and

resource—his faith in God

anything con¬

structive it must be in
is

his

under

a

in

Chart

Babson

the

characteristic

of

are

its

ele¬

that

inventor,

which

he

faith, vision and
is too

It

developed.

in

element that

one

often overlooked—the nor¬

mal

growth factor in the national
economy.
There is none of the
looseness that goes to make up the
so-called G.N.P., nor is there any
attempt to show an "Ever Ad¬
vancing Index of Business."
In his article Mr. Babson gives
the
text
from
Proverbs
29:18,
"Where

there

is

allied

in

However,

whatsoever

could

work

many

de¬
sus¬

association

in

arbitrary
most

Commission

of

certainly

the

will

I

lion

tons

the

made

to

Rule

229

would

the

field that

this

unrealis¬

seems

make the

exemption of the
unavailable
to
one

engaged

business

in

in

or

developing

unrelated

and

the

It is therein stated that four

of

notification

a

to

are

be

filed

Form

on

with

the

to

a

be

controlling

one

in

under

unrelated

Regulation

business

development of

which

it

for
the

a

one

stands,

now

possible

for

one

it

divide

enterprise between two

panies and

to

claim

exemption

for

each

that

event

with

he

could

willful

a

Section 5.

the

of

not

was

to

man

com¬

$300,000

them.

be

scheme

In

charged

to

violate

It is submitted that the

concept

totally
eliminated from

completely
proposed

be

of

the

regulation

not

such

tion

concept from the regula¬

in

the form

in which

it

now

stands.

226(d)

in

the

proposed

regulation has extended the period
of

time within

tion

be

of

which

Regulation

available

to

ing the sale of
and
eliminated

a

it

emption

not

who

has

crime involv¬

a

security to ten
to
have
time
limitation

appears

any

whatsoever within

to

exemp¬

would

anyone

been convicted of

years,

the

A

would

which

be

not

the

ex¬

available

enter¬

broker-dealer revocation proceed¬

Babson

the

any

person,

prises be today without the vision

ing,

and

pelled from membership in a na¬
tional, provincial or state securi¬

integrity of the founder?

When

the

I

white

that

we

today
then
and

first

met

Mr.

moustache

and

Babson

goatee

associate with his picture

were a

distinct red. He was

getting his business rolling
was
doing most of the mis¬

has

ties
a

United

tion

imposed

register

tion

Who

shall

say

Wall

Street,
City, N. Y.

be

New York

The

Mr.

under

the

believe the lim¬

contained

in

a

of the exemp¬
Regulation was

letter of Notifica¬

without the

use

of

an

offer¬

circular.

supplied by prospective users
exemption is

now

Note:

seeking

of the Regulation A

Aug. 31, 1955.
Editor's

persons

Inasmuch as the
information which is required to
ing

Wood, Walker & Co.,
63

Office fraud

entirely reason¬
only requirement

that

filing of

to

was

obtaining

under

subject

ex¬

restric¬

was

the

when

I

or

such

no

on

it

as

the

tion

ATWATER

F.

for

the

when its influence will end?

HUBERT

able

is

securities

tinues

it.

is

Securities Act.
itation

or

States Post

There

Regulation A

tend

suspended

association,

order.

to

been

sionary work himself, calling reg¬
ularly on banking houses and tell¬
ing his own story.
For 50 years he has carried on
a
successful enterprise and con¬
to

month

substantial and the disclosures

of

Atwater's

holidays.

that much

which any persons are
make

are

relatively

Because it has been the

day of filing nor the
in computing the tenday intervening period, in prac¬
tice the waiting period as pres¬
ently in effect is 15 days. If the

required to

complete, it

procedure of eliminating the

same

day

of

filing

and

the

15th

day

would be employed under the new

proposed

revision,
1,
1955,

Aug.

on

would

not

filing made

a

for

become

Aug. 23, 1955.

"This

ore

is

Washington
mission

office
Aug.

on

of

industrial

will

it

why the exemption should
be more rigid than full registra¬
tion itself.

from

it

ments,

the

is

proposed

foregoing

believed

changes

that

and

wilt

uranium

be faced

with

a

na¬

uranium

of

for

alone,
military

uses

were

The

no

foregoing

illustrate

to

seem

to

ranted

if
require¬

even

be

that

is

cited

what

merely

may

now

rampant and unwar¬

speculation

may

be

a

dis¬

organized but justified preface to
great

a

economic

and

scientific

revolution. The Commission should

not be
of

frightened into

"passing

on

the

a

philosophy

merits"

and

paternalism.
ALEC

With

J.

KELLER.

Bateman, Eichler

(Special to The Financial Chronicle)

LOS

W.

ANGELES, Calif.—Gerald

Unger

has

with Bateman,

South

become

affiliated

Eichler & Co., 453:

Spring Street, members.of

the Los Angeles
com¬

Stock Exchange.

other

revisions

operate for the mutual ad¬

vantage of persons seeking to

ex¬

empt securities under the regula¬

>

tion and of the Commission itself.

great deal has been said both

for

this

ments to meet."

would

hend

Aside

of

shortage

industrial

the

on Aug. 20, 1955.
difficult to compre¬

is

we

there

in

ore

fast that the danger is

that

-

do

will get too much

uses

so

tional

why I

reason

we

uranium

develop

Com¬

become effective

Again

time for

Rather, I think that the

until

with

1,. 1955,

in

Reg¬

a

the

milled

one

of

reserve

example,

effective

In contrast,

istration Statement filed

would

under

the cumulative requirement prior
to the year 1975.

practice of the Commission to not

A

Rule

made

waiting period exclu¬
Saturdays, Sundays and

of

sive

and

and, if the
adopted, that consid¬
eration be given to the elimination
is

same

offering
be

the

concept was introduced
Regulation in the form in

the

to

the

day

affiliate
to

is

to

ten-day

tenth

totally different
properties.
Before the

of

group

for

or

prior

regulation. The regu¬
lation in its present form provides
a

power

would take a mill capacity
approximately 3,000 tons per
day starting right now to have

ap¬

the

count

that

A

securities

any

of

company also has an interest in
another company
that raised

$300,000

of

excluded)

which the initial

on

of

group

who could be consid¬

persons

ered

type

one

applied,

people perish." Literally
where

It

in

of

purpose

of

under

conflict

been

construction.

country.

no

have

single

By
mil¬

17

utility
production and

in

year

fueled.

than

will

ore

date

be

most

public

plants

any

subparagraph (a) as set forth on
Page 5 of the draft of July 18,

1-A

have

because

more

to

scale

"It

Reference is

copies

for
for

withhold¬

exemption

person.

1955.

mined
fuel

three
The

uranium

of

from

base

may

be
the

be

believe

a

three

will

thereafter

enormous

1975

not

in

year

tons

over

plants built after the

1975

which

on

be

power

in

This

a

increase

com¬

can

action.

ground

a

million

one

thereafter.

years

to

on

instances result from

a

five

In addition,

membership

securities

many

un¬

of

hardship
persons.

from

for

an

holidays

who has been en¬
joined, has been the subject of a

vision,

no

greatest interest.
It was September marks
such conditions that the 49th Anniversary.




time

same

not

are

time

to

tons

not fear that

reflects

summer

strength was regained.
in such circumstances

—and if he is to do

many

his environment and the period

offered in certain remote but sup¬

posedly healthful areas.
But here was a strong-willed
character who had been born and

are

like to think that there

are

we

the

to each other.

affiliate

then.

indices pub¬
lished by the various government
agencies and by other institutions.

one

at

close

production, for
alone, will have

by 1965 and well

propriate Regional Office at least
15 days (Saturdays,
Sundays and

was

prob¬

confined

deed!

of

causes

state

person

is

an

knowledge

understand

arising as Amer¬
expanding in population,

was

the

this

the

properties merely because

(and later the Sta¬

We do not know that all

to

It is, of course, un¬

that

interests

of

be

period

justified

ore

purposes

million

should

purpose

steadily.

expect

year

ing

for the

company

separate

industry and world commorce.

business

to

that

of

development of ideas that formed

reaction

appears to

"I

warranted and the removal of
any

pletely

corporation

Organization) was created.
had graduated from

T.

I.

the

ica

first

these

made

the definition.

up in the old plants
operations, the scale of
production of ore will have to in¬

persons who have

other

as well
the uranium fuel

during

been convicted

un¬

thereafter,

that is used

Regulation, for

be

of

atom-powered plants

built

replenish

crease

pro¬

a

pe¬

to

as

new

are

riod from five years to ten
years,
as it now
appears in the present

less

owns

Regulation

lems which were

active

affili¬

majority interest in

a

tic to

Babson

Mr.

needed

Hubert F. Atwater

who

person

sphere either.

calling attention to

Chart

tistical

Chronicle:
In

position
an

the

that

should

aided by his strong will and his faith in God.

was

that

in

person

a

needed.

increasing

inventory

uranium-fueled

of construction at that time.

For the

and, if such companies have no
community of interest, there

Babson's struggle for success, which, though hampered

by ill-health,

there¬

event

any

longer

no

the

course

criminal rec¬
otherwise under

are

are

for

plants that will be in the

equally true that a person
may o^n interests in several min¬
ing companies at the same time,

Notes Rogei Babson's
Semi-Centennial Anniversaiy
F.

affiliate

In

serving

and

timing-attempt too fancy?

TO THE EDITOR:

Hubert

an
unincorpo¬
production shall

who

or

disability

pension

any way

}

in

an

ords

prior

ore

1960 in order to fur¬
initial

uranium

having

persons

motional mining company should
be deemed to be an affiliate of

it

LETTER

the

on

grade

average

year

the

29

power

that the restriction

appear

of this defini¬

why

(a

it until the split-day?

the

would

It is difficult to comprehend

ate while

reasons

of

should not be considered

monthly publication).
"Buy a stock at least
four weeks—preferably eight weeks—before the announcement of
a split.
Sell it on the day the split is announced," is the advice
allegedly warranted from the statistical evidence. This conclu¬
sion
is
backed by numerous examples showing the relatively
favorable stock-to-general market action before the split, and
the unfavorable comparative market performance thereafter.
Is

a

by

sub-paragraph

of for the purposes

The

(for

225

theatrical

tion.

of

that

be deemed

the current proclivity toward stock-splitting is a
study of the market reaction thereto, "Stock Market Response to
Announcements of Stock Splits," a synopsis of which appears in

this further conclusion warranted:

let¬

a

issuers

thwarted

interest

rated

Timely in

Investor

careful

rule.

Rule

jority

exception.

an

be

noted

of

to

proposed
regulation proper provides that a
person who owns less than a ma¬

August issue of the Analysts Journal).

the

over

is

the form of

and

thus

proposed

Co., has compiled a major inquiry into the possible relation¬

in the

Honest

would

submitted

previously received

the circular in

Corporate Earnings and Market Movements

be

of

the

nish

Former SEC

Reading Co. for 50 years, Cannon Mills for
Card for 59 years, Air Reduction for

Bon Ami for 57 years)
notably during this bull market.

and

tons

Playing

years,

III.

6

page

to

Observations...
News

(997)

and

the

against

>

cv

>

Don't sit back<

promotional

activity which has emanated from
the

uranium

current

It

boom.

would

prehension
have

exploration

that

appear

about the

boom

ap¬

may

precipitated the proposal to
Regulation A. I am firm¬

amend

ly convinced that
threshold of
well

be

New

a

being

medicine

in

also

were

the

of

same

these

must

of

for

who

daily.

believed

electric

light;

Some

and

others

people

certainly have felt that the

automobile
the

found

charlatan when he

a

invented

the

Age.

industry but

almost

many

Edison to be

on

which may

Atomic

uranium not only in

There

stand

era

the

are

uses

we

new

termed

horse

could

never

replace

and

buggy as a means
transportation.
Disbelief \and

refusal

to

accept

characteristic

of

appears

most

to be a

conserva¬

tive

people when new things and
procedures are introduced to
world
in
their
embryonic
stages. Although it is difficult to
new

the

STRIKE BACK!

predict the ultimate effect which
atomic power may have on the

following

world,

the

from

address by Floyd B. Od¬

ium

an

National

Western

Conference
in
the past winter

are-«sig-

before

Mining
during

excerpts

the

Denver

nificant:

"We will have to be mining per
year

more

than

a

half-million

Give to

AMERICAN CANCER SOCIETY

30

The Commercial and Financial Chronicle

(998)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

STEEL

AND

Indicated steel operations

oil

Crude

(net tons)

Sept. 11

output—daily

(bbls.

average

Month

§2,264,000

*2,255,000

in

or,

2,157,000

63.0

american

1,502,000

railway car

New

of

6,700,550
7,505,000

6,615,500
7.577,000

domestic

freight

26,447,000

23,667,000

Aug. 26

2,044,000

2,179,000

2,217,000

2,101,000

Aug. 26

11,307,000

10,953,000

11,008,000

8,027,000

7,814,000

7,790,000

—

154,698,000

155,563,000

157,005,000

153,757,000

-—.-—

34,093,000

*33,557,000

32.000,000

34,260,000

oil

fuel

fuel

(bbls.)

output

oil output

(bbls.)

————_.

Distillate

oil

fuel

Residual

fuel

ASSOCIATION

(bbls.)

at

(bbls.)

oil

at

OF AMERICAN

Revenue

freight loaded

Re/enue

freight received

CIVIL

ENGINEERING

delivered

cars

of

AMERICAN

7,595,000

Distillate

Ago

2,192

3,015

1,801

6,141,350

Aug. 26

129,794,000

*125,222,000

115,936,000

46,459,000

46,343,000

45,457,000

U.

from

of

CORPORATIONS

civil

71

83

'54

$1,390,300

$543,600,000

gineering

55,903,000

Aug. 27

connections

780,863

cars)__Aug. 27

of

(no.

791,977

652,918

630,924

795,771

$1,239,668

$1,684,163

652,132

August
Total

s.

S.

of

DEPT.

July

construction

news-record

OF

(000's

—

en¬

Month

—

of

construction

!

construction

,

•

U.

construction

S.

Private

657.686

436,735

municipal

1,026,477

445,667

411,023

61,290

and

Federal

and

——

—

municipal

.

1

163,967,000

91,165,000

126,489,000

1

144,631,000

80,0^7,000

111,666,000

131,134,000

19,336,000

11,138,000

14,823,000

26,231,000

1
1

Sept.
(U.

S. BUREAU

$330,296,000

$265,312,000

166,329,000

174,147,000

$317,693,000
191,204,000

$376,682,000

Month

219,317,000

u.

s.

of

212,019

1

exports

(net

Bituminous

coal and lignite (tons)
Pennsylvania anthracite (tons)

Aug. 27

9,650,000

Aug. 27

304,000

9,475,000

*

9,650,000

524,000

V

Europe
Asia

To

485,000

North

To

7,513,000

365,000

of

67,352

Pennsylvania

of

anthracite

South

226,021

____

and

Central

(net

(net

America

tons)

(net

tons)

216.732
204.676

9,145

28,619

SALES

STORE

SYSTEM—11147-49

INDEX—FEDERAL

AVERAGE

=

RESERVE

100

111

106

102

98

(net

(net

tons)..

292

tons)

548

-

•

Electric

(In

output

kwh.)

000

Sept.

3

10,706,000

s

10,906,000

10,925,000

9,087,000

(bureau

of

,

400

mines)—Month

of July:
Bituminous

INSTITUTE:

ELECTRIC

1,409 '•

'

America

Coal output

Aug. 27

,

BDISON

10,647 '

280

tons)

Undesignated

175,513
145,666

216,584

:_

I:

DEPARTMENT

478.375

mines)—

tons)

To

OF MINES):

(bureau

792,576
,

June:

To

Federal
COAL OUTPUT

exports

157,365,000

Sept.

Public construction
State

coal

Sept.
Sept.
Sept.

construction

$1,270,951 '

741,643
498,025

construction

State

576,824

U.

—

(000's omitted/:

u.

Public

676,698

ENGINEERING

—

service-—REPORTED BY

Month

—

engineering

Private

cars)

CONSTRUCTION

S.

COMMERCE

RAILROADS:

(number

in

CASH DIVIDENDS—PUBLICLY

114,984,000

Aug. 26

—

Locomotive units installed

RAILROADS—

NEWS-RECORD:
Total

coal

Pennsylvania

and

lignite

anthracite

(net

(net

tons)-

36,660,000

tons)_

36,540,000

27,707.000

1,755,000

*2,024,000

1,939,000

_

-

FAILURES
BRAD

(COMMERCIAL

INDUSTRIAL)

AND

—

DUN

&

COPPER

bept

STREET, INC

1

215

180

213

193

steel

Pig iron

Scrap steel

^g. 30

JO

ton)

(E.

M. J.

A

refinery

Export
Straits
Lead
Lead

Zinc

tin

(New

(St.

\

„

$43.33

In

$28.67

at
at

42.525c

41.425c

35.700c

29.700c

Aug.
Aug.
Aug.
Aug.
Aug.

at_

U.

of

43.050c

41.800c

37.325c

29.450c

95.625c

96.250c

97.625c

92.500c

15.000c

15.000c

15.000c

14.250c

14.800c

14.800c

14.800c

14.050c

12.500c

12.500c

12.500c

11.000c

31
31
31
31
31

to

S.

|ep**

94.70

107.44

108.16

110.52

110.70

111.14

Baa

Railroad

Group

2~

~

109.97
108.34

102.80

103.30

at

Sept.

106.21

106.74

107.80

108.70

108.16

108.88

112.00

m"Sept.v.4;

2.89

2.91

2.89

2.49

6

3.32

3.31

3.27

3.13

Sept.

6

3.14

3.13

3.09

2.89

Sept.

vi

,

6

3.23

3.22

3.17

3.03

Sept.

corporate*

Average
Aaa
Aa

-

A

Sept.

6

3.31

3.26

Sept.

6

3.59

3.58

3.55

3.47

6

3.39

3.38

3.35

3.21

6

3.29

3.29

3.24

3.12

3.32

;

July

Group

Railroad

—

-—

COMMODITY

RATIONAL

Sept.

INDEX

PAPERBOARD

6

3.27

Sept'

Group

Industrials
MOODY'S

Sept.
Sept.

—

Utilities Group

Public

6

408.2

and

Meal—

(tons)

Aug. 27

(tons)
(tons)

237,378

281,121

210,528

July

280,062

241,922

99

100

99

92

Aug. 27

(tons) at end of period

282,969

589,665

619,331

602,944

330,720

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

AVERAGE

Sept.

2

106.61

106.68

106.81

DEALERS

EXCHANGE

—

AND

SPECIALISTS

SECURITIES

Odd-lot sales by dealers

ON

EXCHANGE

(customers'

Y.

N.

t

purchases)—t

Aug. 13
Aug. 13

value

975,290

$51,612,834

1,133,728

*1,294,989

1.112,250

$62,463,360

*$71,834,190

Aug. 13

785,375

887,576

*1,015,706

1,191,847

short sales

Aug. 13

5,881

5,984

*6,364

31—______

Aug. 13

779,494

881,592

♦1,009,342

1,169,809

Aug. 13

$41,063,005

$46,293,057

*$52,417,020

$49,481,896

Dollar value

|
203,660

230,940

Aug. 13

Aug. 13

203,660

230,940

2~56~540

386,930

Aug. 13

403,730

450,540

536,000

314j780

Short sales

256,540

—

—

July

;

31

FOR

Total

ACCOUNT

OF

ON

THE

STOCK

MEMBERS

N.

Y.

July

Aug. 13

130,083

ACCOUNT

OF

445.800

471.630

10,719,800

11.680,770

13,727,520

12,152,400

14,313,370

11,165,600

MEM¬

Stocks

etc.

:

:__

1.1,000

sales

Revenue

ultimate

Total

to

ultimate

NEW
=

SERIES

—

MOTOR

VEHICLE

STEEL

U.

S.

PLANTS

IN

U.

figure.

number

1,177,900

1,336,370
1,618,090

1,668,780

NEW

of

YORK

443.6

346.2

32,531.065

$644,841,000

$579,312,000

51,731,855

31

38,139,741

$639,059,000

51,567,416

50,353,854

366.853

318,150

217,658

282,325

82.8

81.5

767,182

530.415

653.736

647,658

451,663

109,589

119,215

78,507

296

309

245

$2,779,837

-

*$2,757,462

$1,925,512

-

of

DEPT.

and foods

barrels

of

trucks
—

STOCK

(000's

EXCHANGE—As

of

July

omitted 1:

542,190

38,000

34.400

252,480

330.810

286,610

463,270

Credit

269,380

356,110

324,610

497,670

Cash

361,472

507.904

502j470

501.808

Market

value

of

listed

shares—_—;

Market

value

of

listed

bonds.

75,580

91,720

65,500

96,660

398,810

602,467

615,596

571,375

474,390

694,187

681,096

668,035

1,806,012

2,152,744

2,303,080

2,671,618

273,380

328,330

385,220

455,170

1,630.480

2,111,177

2,238,576

2,379,315

1,903,860

2,439,507

2,623,796

2,834,485

OF

Member

firms

Total

110.5

*110.5

110.1

carrying

customers'

extended
hand

on

of

net
to

margin
debit

accounts—

balances

customers

and in

customers'

free

45,343

credit

Member
REAL

borrowings

AREAS

OF

on

other

FINANCING

ESTATE

U.

S.

BOARD—Month

—

of

HOME

June

and

trust

savings

LOAN

109.5

87.9

*88.3

87.2

101.9

104.7

*04.5

81.4

117.1

*117.0

116.7

114.4

125 828 310

tons

$950,000

-$741,435

banks

173.619

163.472

482,212

368.137

171,343

__

145.612

lending

STATES
OF

EXPORTS

CENSUS

—

AND

133,203

285,911

249.310

449,323

institutions

152.643

448,573

$2,635,533

(000's

Exports

'1,246,353

516,078

—

companies

Total
UNITED

152.775

2,199,031

BANK

85.8

crude runs.
§Based on new annual capacity of
of Jan. 1, 1955, as against Jan. 1, 1954 basis of
124,330,410 tons.
tNumber.of orders not reported since introduction, of
Monthly Investment Plan.

105,726.610

88,898

300,776

Miscellaneous

91.6

♦101.4

145,843.061

104,282,202

omitted):

Individuals

101.0

877,044

NON-FARM

(000's

Savings and loan associations
Insurance companies

*917,481
194.405.657

2,192,172

collateral

IN

32.596

325.022

918,110

161,800

balances-

46,250

198,227.782

S

*340.161

104,002,294

in U.

336.146

$1,024,394

banks

Mfe'mber borrowings on U: S. Govt, issues

BUREAU

foreign

81.8

July:

cars.

326,880

—Aug. 30
of

265,181

of

vehicles

passenger

262.782

j

MANU¬

25,300

Aug. 30




6,578,000

397.2

FROM

305,400

Aug. 30

681,000

19,286.000

10,867.000

768,621

SALES

16,900

Bank

than farm

22,707,000

18,335,000

7,546.000

CONSTRUC¬

238,530

Aug. 30

^Includes

22,275,000

19,147.000

1,344,670

1,389,210

Mutual

other

967

2,204

(AMERI¬

S.—AUTOMOTIVE

buses

100):

foods

commodities

4,170

518

COMMISSION—

FACTORY

of

Aug. 13

products

♦Revised

2,886

July:

COMMERCE

Number

82.7
All

May

Railway Employment at middle
(1947-49 Average=100)

324,110

Aug. 13

commodities

Farm

at

STEEL

of

281,720

Aug. 13

._.

(1947-49

.1

consumers—

(tonnage)—estimated
(tonnage)—estimated'

211,310

Commodity Group—

Processed

OF

of

180,900

members—

a.

sales

PRICES,

590

1,304

closed

motor

Aug. 13

account of

Short sales

All

INSTITUTE

of

979,190

Aug. 13

Total sales

—

CAN

Number

Aug. 13

.

Total round-lot transactions for
Total purchases

LABOR

customers

STRUCTURAL

1,627,620

Aug. 13

sales

WHOLESALE

ultimate

Contracts

Total

Total sales

Other

of

1,473,730

1,160,090

Aug. 13

Short sales

Other

496

22.247,000

customers—month of
;

May

1,339.440

floor—

1

purchases

229

156

38,126,562
from

Aug. 13
the

129

438

Aug. 13
off

364

1,224

Aug. 13

initiated

64,186

89,464

2,100

Aug. 13

sales

transactions

56.724.

127,838

pounds)—

31

Kilowatt-hour

30

purchases

Total sales

Other

151,001

90

_'

1,206,010

floor—

Short sales
Other

74,715

159,526

SPINNING

Number

Aug. 13

Total sales

Total

49,005

141

;;

:

FACTURERS' ASSN.—Month

—

the

42,355
.42,8JB& s.\.

313
:

July

98,174

50,613

Active spindle hours per spindle in place July

Total

specialists in stocks in which registeredTotal purchases
Aug. 13
Short sales
Aug. 13
Other sales
-Aug. 13
of

on

97,916

48,230

80,056

;

585,850

8,742,810

9,136,120

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Other transactions Initiated

203,321

*03,175

bales)—

Produced

July

393,310

Aug. 13

Aug. 13

sales

FOR

237,998

42,647

31

Shipped
Motes, Grabbots,

Index

TRANSACTIONS

•

•124,325

36,071

^

__;

L

(1,000-lb

INTERSTATE

(SHARES):

Short sales

Transactions

.

—

__^

Fiber

Shipments

STOCK

Total sales

ROUND-LOT

r

TRANSACTIONS

round-lot sales—

Other

'

78,293

'

TION)—Month

Number of shares

EXCHANGE AND ROUND-LOT

T

41,654

Shipped

FABRICATED

Round-lot purchases by dealers—

TOTAL ROUND-LOT STOCK SALES

„'v

386,930

Aug. 13

sales

r

113,201

(tons)

Produced

Number

Number of shares—Total sales

Other

"78,738.000

108,802,000

■

{.

203.090

r

_

__—

22,038

other sales

dealers—

87,033,000

134,560,000

95,852,000
/ *■*"

EDISON ELECTRIC INSTITUTE:

Customers'

sales by

953,654,000

$49,825,757

Customers'

Round-lot

83,911,000

433,456,000

•.

59,120,000

21T2122____ll___

(DEPT. OF COMMERCE):
Spinning spindles in place on July 30
Spinning spindles active on July 30____
Active spindle hours (000's omitted)
July 30

STOCK

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

as

___;

207.127

•

Stocks

COTTON

COMMISSION:

Number of shares

Dollar

77.097,000

93,045,000

128.280

-

—

106.61

ITOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

67,251,000

Shipped

100

=

42,249.000

July 31

_—

283,215

228,643

73,552,000

-

344,085,000
2_

(tons)

Shipped
(tons)
Linters (running bales)

Hull

243,315

63,010,000

'•

Produced

249,364

Aug. 27

activity

Unfilled orders

3.06

412.2

18,525
197.030

56,962,000

•

(tons)

Stocks (tons)

Stocks

Aug. 27

Production

of

3.23

405.2

ASSOCIATION:

Orders received

Percentage

3.27
403.9

*

"s*'

53,915,000

7

—;

31

____

;■

•'

209,064

'

1

——I-——*—

(pounds)

Produced

3.13

Baa

/

131,087

31—

._

Hulls—
,

■*

■

f

L_L_——_L

July

(pounds)

Shipped
,

of

165,338

July 31_

(pounds)

Produced

U. 8. Government 'Bonds

-

69,077

Oil—

Stocks

MOODY'S BOND YIELD DAILY AVERAGES:

97,436

38,533

PROD¬

•#.«•;

(pounds)
Consumption '(pounds)

Cake

*132,730

(tons

COMMERCE—Month

Produced

110.88

108.16

SEED

(tons)___

(pounds)

Stocks
.

107.80

Sept.

GroupGroup

107,193

60,143

olperiod

Oil—

Shipped

109.24

Sept.

Utilities

Public

Industrials

76,320

*130,881

36,293

end

(tons)

Refined
_

*101,940

51,162

2,000 pounds)

COTTON

mills

(tons)

Produced

104.66

116.04

39,421

.

pounds)

:

Stocks

110.70

A.—

^

OF

Crushed

112.56

107.44

102.63

.

109.06

107.27

July:

Seed—

Received

115.24

'108.88

of

pounds)

2,000

AND

July:

110.70

S.

pounds)

UCTS—DEPT.

100.13

107.27

|ePJ-

Average corporate

94.52

2,000
of

(tons of

SEED

Cotton

Crude

94.77

U.

copper stocks at

COTTON

MOODY'S BOND PRICES DAILY AVERAGES:

in

month

fabricators—

A.

2,000

Stocks

U. 8. Government Bonds

of

(tons

Deliveries

Refined

An_

at

(East St. Louis)

$43.83

(tons

Refined

4.801c

$56.59

AUfc-

at

Louis)

5.174c
$59.09

,

at

York)

(New York)

5.174c

$59.09

QUOTATIONS):

Electrolytic copper—
Domestic refinery

5.174c
$59.09

$43.83

AUg-

(per gross ton)

METAL PRICES

production

Crude

(per lb.)

(per gross

INSTITUTE—For

Copper

IRON AGE COMPOSITE PRICES:
Finished

-

July:

10.107,000

Aug. 26

Stocks at refineries, bulk terminals, In transit, In pipe lines—
Finished and unfinished gasoline (bbls.) at
Aug. 26
Kerosene (bbls.) at-——
Aug. 26

OF

6,955,000

26,711,000

Residual

Year

Month

institute—

$669,000,000

6,684,800

117,582,000
26,611,000

Kerosene output

Previous

July:

Month

Aug. 26

(bbls.)

average

(bbls.)
(bbls.)

output

of that date:

are as

Month

Ago

89.4

ASSOCIATION

Aug. 26

to stills—daily

runs

Gasoline

of quotations,

cases

either for the

are

Latest

Aug. 26

Crude

production and other figures for the

cover

Year

Ago

*93.4

Thursday, September 8, 1955

Dates shown in first column

that date,

on

of

each)

42 gallons

Week

§93.8

month ended

Month

condensate

and

Week

Sept. 11

month available.

.

INSTITUTE:

PETROLEUM

AMERICAN

INSTITUTE:

(percent of capacity)

Equivalent to—
Bteel ingots and castings

Previous

or

or

;.

$2,482,811

$1,990,

$1,150,000

$1,183,000

$1,023,000

863,000

940,000

•822,000

352.395

IMPORTS

Month

of

July

omitted):
—:

'

.—

Number 5462

182

Volume

The-Commercial and Financial Chronicle

vt.

(999)" 31 "

* indicates

Now in

Securities
Uranium & Oil

Academy

stock

Corp.

(letter of notification) 15,000,000 shares of com¬
stock. Price—At par (one cent per share). Proceeds

June 10
mon

—•For mining

Office—65 East Fourth South

operations.

held

Price

'—

Industrial

St. Louis, IV!o.

and gas operations.
Tex.

Underwriter

Allstates Credit Corp.,
lative

preferred
stock

common

Corp., St. Louis, Mo.

stock

$10)

(par

and

27,000

shares

of;

in units of one
Price—$11 per unit. Pro¬
working capital, etc. Office—206 No. Vir¬
to be offered

(par $1)

July 29 filed 50,000 shares of 60-cent cumulative
ferred stock (par $5) and 10,000 shares of common

pre¬

ceeds—For

stock

(par 10 cents) to be offered in units of five preferred
and one common share.
Price — $50 per unit.
Paul C. Kimball & Co., Chicago, 111.

ginia St., Reno, Nev.
same

shares

—

Offering—Expected early in September.

Aldens, Inc., Chicago, III.
Aug. 10 filed $3,662,600 of convertible subordinated de¬
bentures due Sept. 1, 1970, being offered first for sub¬
■

ratio of $100
principal amount of debentures for each 16 shares of
scription by common stockholders in the

Underwriter—Senderman & Co.,
,.

offered in units of
per

related

share of each class of stock. Price

one

unit. Proceeds—For construction of hotel and

activities

for

and

contingencies, stock in trade,

and working capital. Underwriter—None.

American

(Bids

(Bids

Equip. Trust Ctfs.

I

$7,500,000

EDT)

noon

Ohio

Power

(Friday)

September 9

(.Offering to stockholders—underwritten by
Stanley & Co.) 100,931 shares

'■§£

Morgan

(Offering

Gas

Debentures

Bonds

(Republic of)

$291,000

Brothers)

Lehman

debentures

(Offering

722

45,000 shares

-Common

stockholders—Goldman,
dealer-manager)

\

.'*>

■;

*

(Tuesday)

13

September
(Offering

shares

held;

debentures

rights

Co., Inc,)$800,000

and Warren W. York &

Inc.

Co.

&

Debs. & Common

Properties, Inc..

Food Fair

(Tuesday)

of

$100

underwritten

(Bids

.

$15,000,000

EDT)

noon

Maloney (M. E.) & Co, Inc

(Bids

Common

(Offering

•'

•.

•

'•

'

shares
--

.

A.

(D.

Common
&

Lomasney

and

v

•

(Gearhart
-

■

i

■

&

Dillon

&

w±

Co.)

Inc.

& Co., Inc.)

Stuart &

Automation-Engineering Corp.
>.
Aug. 16 (letter of notification) 200,000 shares of non¬
assessable common stock.
Price
At par ($1.50 per
share).

Proceeds—For

Office—1127

Wilshire

be

general

funds

Boulevard,
D.

Weston

of

the

company.

Los

&

Angeles, Calif.
Co., Beverly Hills,

+ Balboa Mining & Development Co.
July 1 (letter of notification) 1,497,500 shares of com¬
mon stock.
Price—20 cents per share. Proceeds—For ex¬
incident

Mountain States

to

mining

activities.

Underwriter

Securities Corp., Denver, Colo.

invited)

Bank-It-Company, Denver, Colo.
Aug. 12 (letter of notification) $100,000 of 6% second
series debentures dated Aug. 1, 1955 and due serially
from 1958 to 1961.
Price—At par (in denominations of

Garrett-Bromfield & Co., both of Denver, Colo.
Industries Corp.

(letter of notification) 124,000 shares of com¬
mon stock (par 50 cents).
Price—$2 per share. Proceeds
—For working capital, etc.
Office — 1424 East Farms
Road( New York City. Underwriter—Jay W. Kaufmann
& Co., New York.
Aug. 24

it Big Owl Uranium Mines
July 29 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—15 cents per share. Proceeds^—For ex¬
penses

incident to mining activities.
Co., Denver, Colo.

Underwriter

Continued

on

page

Bonds

$8,500,000

Common
and F. H.

Crerie

$1,590,000

Southern
(Offering

to




Bonds

$25,000,000

(Tuesday)
Common

Co.
stockholders—bids

11

November 29

(Bids

Bonds
Co, Inc.)

Gas1 Corp

be invited)

a.m.

EDT)

1,507,303 shares

(Tuesday)

__

(Tuesday)
$30,000,000

Detroit Steel Corp
(Offering to stockholders—no underwriting)

(Wednesday)

19

Common
503,155 shares

Bonds

Electric Co

11:30

a.m.

December

6

EDT)

$18,000,000

to

be invited)

$12,500,000

New York.

Boston

Philadelphia

(Tuesday)

Virginia Electric & Power Co
(Bids

—

V1

(Tuesday)

November 1

$3,000,000

Corp

(Halsey,

to

October

$300,000

Corp

September 20
Steel

Systems, Inc.
shares of common stock (par 50
Price—$3.75 per share. Proceeds—For manufac¬
ture of Teleac Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬
more, Md. Underwriter—Mitchell Securities, Inc., same
city. Statement effective.
: ;
:

$30,000,000

be invited)

New York State Electric &

San Diego Gas &

Detroit

Remote

—

Cranmer &

Debentures

County Electric Co

(Bids to

Preferred
Co.)

&

Otis,

Common

Inc.) $900,000

& Co.,

Common

& Sessions Co._

Yellowknife Uranium

Automatic

■

(Monday)

Commonwealth Life Insurance Co

(McDonald

(Monday)

& Tel. Co.—„

(Bids to

and Shaiman & Co.) $1,250,000

.

(Eastman,

inventory and improvements. Office — 324
Underwriter — D. A.

Common

September 19

Lamson

The

(Wednesday)

October 18

Worcester

$100,000,000

Inc

(General Investing Corp.

Corp.)

(Barrett Herrick

Southern Bell Tel.

(Bids

I

Common
be underwritten by
195,312 shares

International, Inc.

Fort Pitt Packaging

$299,970

Kuhn, Loeb & Co.;

Brothers)

Uranium,

Colohoma

Debentures

Pacific Power & Light Co
-Preferred
(Expected by local dealers) $3,000,000

Debentures

C. I. T. Financial Corp
(Dillon, Read & Co. Inc.;
Lehman

Co.)

-

$35,000,000

EDT)

stockholders—may

October 5

300,000 shares^

Products

Metal

a.m.

October 17

Common

Pierce, Fenner & Beane)

(Merrill Lynch,

11

First Boston

'

Title & Insurance Co

American

Underwriter—None.
Title &

$100 each). Proceeds—To help pay in part the cost of a
new
plant.
Office—2590 Walnut Street, Denver, Colo.
Underwriters—Peters, Writer & Christensen, Inc. and

(Tuesday)

.

(Thursday)

September 15

$300,000

Telephone Corp
to

Proceeds—For construc¬

(9/15)
Aug. 26 (letter of notification) 90,900 shares of capital
stock (par $1), of which 23,400 shares are to be sold for
account of the company and 67,500 shares for account
of two selling stockholders. Price—$3.30 per share. Pro¬

Bassons

Rochester

—Common

(Kidder, Peabody & Co.) 174,540
■

Arcadia

(Bids

shares

-

—

Inc.)

& Co.,

October 4

Gas Transmission Co
Common
Securities Corp. and White, Weld ,¥."
400,000

(Monday)

-—Common

(Barrett Herrick

& Webster

Co.

-Common

Public Service Electric & Gas Co

Co.;

share, payable by sur¬
payment of $48 in

and

Insurance Co. (9/15)
Aug. 26 filed 300,000 shares of common stock (par $2),
of which 200,000 shares are to be sold for the account of
the company and 100,000 shares for the account of a
selling stockholder. Price—To be supplied by amend¬
ment.
Proceeds—To redeem the outstanding $300,000
4V2% first preferred stock (par $100); to purchase stock
of Reliable Fire Insurance Co. of Dayton, Ohio; and
for working capital, etc.
Office—Miami, Fla. Under¬
writer—Merrill Lynch, Pierce Fenner & Beane, New
York.
-■/;■
y.:vW -v.
/
V

penses

Telegraph

(Victor V.) Co..

Boips

Webster Securities Corp.; White, Weld &
Halsey, Stuart & Co. Inc.) $50,000,000

Co.)

(Saturday)

October 3

Equip. Trust Ctfs.
Co.—

Tennessee Gas Transmission

&

shares

*

$4,200,000

EDT)

(Bids noon

1,068

EDT)

a.m.

—

Bonds

Reading Co

(Stone

Common
11

(Offering to stockholders—no underwriting) $48,688,100

Clad

per

debentures

The
be¬

Calif.

Heine & Co.

Common

$10,000,000

EDT)

noon

(Thursday)

September 29

Co.

Co.—.

Pacific Power & Light

Tennessee

$400,000

(J. H. Lederer Co.)

October 1

—

1955.

—

Common

:

—

Mountain States Telephone &

Massachusetts Indemnity Insurance Co
(Estabrook & Co.) 60,000 shares

Vendo

Sulphur, Inc.

Co.) $289,000

C. Champlain &

(A.

and

and

Forgan

(Bids

(Wednesday)

September 14

(Stone &

Stanley <te Co.; Drexel & Co.;
& Co.) $25,000,000

Morgan
Glore,

177,500 shares

(Bids noon EDT)

13>

.

(Wednesday)

—Common

Light Co

Utah Power &

of

Price—At face amount.

Underwriter—Daniel

Bonds

Utah Power & Light Co.—
■

Common
125,714 shares

Co.)

&

September 28

Pood Fair Stores, Inc.—
by Eastman, Dillon & Co.) $7,691,250

Oct.

on

cents).

stockholders: of

to

(Offering

expire

March .3 filed 540,000

.

Public Service Electric & Gas Co._—-—Preferred
(Probably

to

be convertible into jcommon stock

Second Ave., Arcadia, Calif.
Lomasney & Co., New York.

Equip. Trust Ctfs.

Estabrook

Inc.) 30,000 shs.

to

are

ginning Dec. 13, 1955, at $148

No.

(Offering to stockholders—underwritten by

-Debentures

Eastern Lime Corp
(Stroud & Co. Inc. and Warren W. York & Co.,

will

Co.

$9,390,000

EDT)

noon

con¬

Oct.

13, 1967, being offered
subscription by stockholders of record Aug. 25,
1955, on the basis of $100 of debentures for each eight

ceeds—For

St. Croix Paper Co

by Blyth &

to stockholders—underwritten
Co., Inc.)- $3,654,000

Eastern Lime Corp.-—(Stroud

^

Common

California, N. A

Bank of

&

shares

(Thursday)

September 22
(Bids

Sachs

197,532

September 27

.

Common

$450,000

Co.)

to

Common

Dillon & Co.)

(Eastman,

Mines, Inc
&

due

for

* Arcadia Metal Products

$40,000,000

Southern Pacific Co

I

Co

'Federal Glass

——Debentures

EDT)

Tampa Electric Co

by

stockholders—underwritten

to

100,000 shares

Inc

a.m.

(T'ellier

Class A

Exploration Corp

(Offering

(Wednesday)

be

*

Dakamont

11:30

Rio de Oro Uranium

$3,000,000

Co.)

&

$22,000,000

Corp.)

System,

(Bids

Corp

(Allen

Higginson

Gas

(Monday)

stockholders—underwritten by Burt, Hamilton
Inc. and N. R. Real & Co.) $600,000

to

EDT)

a.m.

.—.Common

(Lee

Co.,

&

Cuba

&

Oil

Boren

$6,000,000

Cameo, Inc.
Columbia

September 12

11

September 21

...Common

Manufacturing Co

Towne

&

EDT)

a.m.

Bonds

(Bids

Yale

Preferred
11

Co

corporate

up

American

Ohio Power Co.__

(Thursday)

September 8
New York Central RR

common

Proceeds—

Telephone & Telegraph Co.
to $637,165,800 of 12-year 3y8%

filed

2

render

CALENDAR

shares of
general

Price—$10 per share. Proceeds—For working capital, etc.
Underwriter—None.

tion program.

ISSUE

Atlanta, Ga.
share.

American Republic
Investors, Inc., Dallas, Texas
July 15 filed 800,000 shares of common stock (par $1).

cash.

NEW

Inc.,

Offices—743 E. Penn Street, Philadelphia, Pa.;
Healey Building, Atlanta, Ga. UnderwriterSecurities Co., Atlanta, Ga.

1131

Franklin

vertible

Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of, preferred stock
(par $10) to be
—$11

American Mica Processing
Co.,
Aug. 11 (letter of notification) 300,000
stock (par 10 cents).
Price—$1 per
For plant and
equipment and other

Aug.

Aloha, Inc., Las Vegas, Nev.

ISSUE

common stock.
Price—30 cents per share. Proceeds—For
exploration and
development expenses, etc*. Underwriter—Hudson-Bergen
Securities, Inc., Cliffside Park, N. J.

•

address.

'

REVISED

Montreal, Canada

and

share of each class of stock.

ITEMS

July 22 (Regulation D) 1,000,000 shares of

purposes.

Reno, Nev.

June 27 (letter of notification) 27,000 shares of 7% cumu¬

Offering—Expected early in September.

Underwriter

—

dress.

tures, series B, and for expansion and working capital.
Underwriter — Paul C. Kimball & Co., Chicago, 111.

Admiral Finance

Office—1508 Capitol Ave., Houston,
Paul C. Ferguson & Co., same ad¬

PREVIOUS

Alouette Uranium & Copper
Mines,

of

Development Corp.
June 20 (letter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil

outstanding junior subordinated deben¬

of

102%

Allied

July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due Sept. 1, 1970.
Price
—At 100% of principal amount.
Proceeds — To retire
$513,182.50

as

•

of Aug.

30; rights to expire on Sept. 15.
principal amount. Proceeds — For
working capital and expansion purposes.
Underwriter
—Lehman Brothers, New York.

St., Salt Lake City, Utah. Underwriter—Western States
Investment Co., same city.
Admiral Finance Corp.,

Registration

additions

SINCE

—Preferred

Pittsburgh

San Francisco

Private Wires to all

offices

Chicago

Cleveland

32

The Commercial and Financial Chronicle

(1000)

32

Continued from page
Black Hills

Charleston

31

Aug.

Uranium & Minerals Corp.

1,200,000 shares of non¬
assessable common stock (par one cent).
Price
2o
cents per share.
Proceeds—For mining expenses
Ad¬
dress—P. O. Box 1363, Rapid City, S. D.
Underwriter(letter of notification)

Aug. 11

Black Panther Uranium

Co., Oklahoma City, Okla.

500,000 shares of common stock (par 10
Price—$1 per share.
Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—
12 filed

July

cents).

Porter,

&

Stacy

Co.,

Tex.,

Houston,

on

efforts

"best

basis."
Uranium

Blackstone

Aug. 3

Mines, Inc., Denver, Colo.
(letter of notification) 15,000,000 shares of com¬

stock

Price—2l/z cents per share.
Proceeds—For expenses incident to mining activities.
Office—801 Custis Street, Denver, Colo.
Underwritermon

Columbia

(par one cent).

Securities Co., Inc.,

city,

same

r
Blenwood Mining & Uranium Corp., Denver, Colo.
July 29 (letter of notification) 1,000,000 shares of com¬

stock

30 cents per share.
Proceeds
For expenses incident to mining operations.
Office—612 Kittredge Bldg., Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
mon

Price

(par 10 cents).

share.

ing

Price—$5 per unit.

Felt

writer—J.
Boren

Building, Salt Lake City, Utah.
Co., Salt Lake City, Utah.

Under¬

Investment

Oil

&

Corp. (9/12)
July 26 filed $600,000 of 6% convertible debentures due
July 15, 1975, to be initially offered for subscription by
stockholders on the basis of $100 of debentures for each
100 shares (or fraction thereof held).
Price—At 100%
of principal amount.
Proceeds—To pay current debt;
lor drilling expenses and development program.
Office
—Wichita Falls, Tex.
Underwriters—Burt, Hamilton &
Co., Inc., Dallas, Tex.; and N. R. Real & Co., Jersey City,
N. J.

^ Bruning (Charles) Co., Inc., Chicago, III.
.Sept. 2 filed 136,400 shares of common stock (par $3).
Price—To be

supplied by amendment. Proceeds—To sell¬
Underwriter — William Blair & Co.,

ing stockholders.

Chicago, 111.
Calumet &

Proceeds—For
2nd

June

9

filed

shares of common

116,832

(par $5)

stock

being offered in exchange for all of the issued and out¬
standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
share of Goodman common stock; eight shares for each
share of Goodman 2nd preferred stock; and eight shares
ior each share of Goodman 1st preferred stock; offer to
terminate on Sept. 15, 1955 (subject to withdrawal by
Calumet if the required number of Goodman shares have
not been deposited and accepted within 30 days from the
date of the mailing of the prospectus to the Goodman
stockholders). Underwriter — None. Statement effec¬
tive July 20.

which
and

75,000 shares

to be for account of

are

company

for Paul R. Mills, Chairman of the
Price—To be supplied by amendment'. Proceeds
shares

25,000

Board.
—To

acquire six trucks; to

note;

and for working capital.

a $120,000 6% serial
Underwriter—Lee Hig-

repay

ginson Corp., New York.
Canadian

Petrofina

Ltd.

(Montreal, Canada)

July 15 filed 1,434,123 shares of non-cumulative par¬
ticipating preferred stock (par $10), of which 270,943
are
being offered in exchange for shares of $1
par capital stock of Calvan Consolidated Oil & Gas Co.

shares

the

on

basis

of

share

one

of

Canadian

Petrofina

for

each four shares of Calvin stock and 1,163,180 shares are
offered

in

exchange

for

Western Leaseholds Ltd.

shares

or

stock

of

Leasehold Securities Ltd.

on

of

common

the basis of three shares of Canadian Petrofina for each
10 shares of Western Leaseholds
«tock

or

Leasehold Securities

held. These offers will expire on Sept.

15. Under¬

writer—None.

Canadian Uranium
June
stock

Mines, Ltd., Montreal, Canada
3
(regulation "D") 2,000,000 shares of common
(par one cent). Price—15 cents per share. Pro¬

ceeds—For

exploration and development expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.
Caribou

Proceeds—For general work¬
National Bank of Commerce

•

C.l.T.

Underwriter—Crichton

Financial

etc.

Underwriter—Mountain States

ver,

corporate

Inc.,

Kuhn,

New

York

Clad

Loeb
City.

&

(Victor V.)

Co.

Lehman

and

Co., Philadelphia, Pa.

Securities, Inc., Den¬

Cedar

Springs Uranium Co., Moab, Utah
(letter of notification) 300,000 shares of

(par five cents).

For

Price—$1

common

share. Proceeds—
Underwriter—Universal Invest¬
per

mining expenses.
ment Corp., Washington, D. C.

Central Electric & Gas Co., Lincoln, Neb.
Aug. 19 (letter of notification) 15,000 shares of common
stock (par $3.50). Price—At market ($3 per share below
average market price for the month).
Proceeds—For
working capital.
Office—144 South 12th St., Lincoln,

Underwriter—None.

For

equipment and workmg capital.

rett Herrick

&

if Central Finance Co., Inc., Sioux City, Iowa
Aug. 29 (letter of notification) $75,000 of 8-year 6% sub¬
unit.
,

instalment

debenture

Proceeds—For

Office—330

notes.

Price—$100

additional finance

Davidson

writer—None.




and

loan

Bldg., Sioux City, Iowa.
^

per

paper.

Under¬

4th

Empire

City, Utah.

Underwriter—Empire Securities

city.

same

if Cordele Publishing Co., Inc., Cordele, Ga.
Aug. 24 (letter of notification) 500 shares of 6% cumula¬
tive, callable, preferred stock. Price—At par
($100 per
share). Proceeds—To pay mortgages and for
equipment.
Office—Seventh Street, Cordele, Ga.
Underwriter—None.

of

(10/3)

Cordillera Mining Co.,
Denver, Colo.

June 8 (letter of
notification) 2,995,000 shares of common
stock. Price—At par (10 cents
per share).
Proceeds—
For mining operations.
Offices
738 Majestic

Underwriter—Bar¬

Co., Inc., New York.

—

•

Bldg.,
Denver, Colo., and 317 Main St., Grand
Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.
Corning Natural Gas Co.
Aug. 26 (letter of notification) 11,000 shares of common

Clad-Rex Steel Co.,

Denver, Colo.
400,000 shares of common stock (par 10
Price—$1.25 per share.
Proceeds—To repay

Aug. 24 filed
cents).

obligations,

etc.

for

and

working

capital.

Mountain States Securities Co., Denver,

—

stock

Colohoma

Uranium, Inc., Montrose, Colo.

(9/15)
April 21 filed 2,960,000 shares of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬
ate

Underwriters—General

purposes.

New

Investing

Price—$1

per

share.

—For
343

Proceeds—

stock (par one cent).
Price—10 cents
Proceeds—For mining expenses. Office—404

com¬

if Cross-Bow Uranium Corp.
Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon
stock.
Price—At par (six cents per
share). Pro¬
ceeds
For mining operations. Office
1026 Kearns;
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
—

—

vestment

Lake
•

Works

due

1983.

Price—To

Proceeds —To

be

supplied by

Romenpower

Co., New

York.

'

J

•

Dakamont

Exploration Corp. (9/12-16)
Aug. 24 (letter of notification) 291,000 shares of class A
stock, to be offered to common stockholders on the basis
of three shares of class A
common

Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
share.

% bonds

Eletra Con¬
struction Co. which had received them in
consideration
of construction work.
Underwriter—Allen &

Community Credit Co., Omaha, Neb.
6
(letter of notification) 1,000 shares of 5Y2%
preferred stock. Price—At par ($100 per
share).
Proceeds—For working capital.
Office—3023
Farnam St., Omaha, Neb. Underwriter—Wachob-Bender
Corp., same city.

per

4

amendment.

Un¬

cumulative

cents

Co., and Mid-America Securities, both of Salt
City, Utah.
*
t

Cuba (Republic of)
(9/12-16)
Aug. 10 filed $3,000,000 of Veterans, Courts and Public

June

Price—25

com¬

share.

Cromwell Uranium &
Development Co., Inc.
May 25 (regulation "D") 300,000 shares of common stock
(par five cents). Price—$1 per share. Proceeds—For
exploration and development
expenses, etc.
Offices—
Toronto, Canada, and New York, N. Y. Underwriter
James Anthony Securities
Corp., New York.

one

cents).

per

UniversityBuilding, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.

derwriter—Eastman, Dillon & Co., New York, N. Y.

10

101

selling
Underwriter

mon

• Commonwealth Life Insurance
Co. (9/19)
Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
credited to capital stock, unassigned surplus and reserve
for business development ana for expansion and life

(par

(par
a

Cortez

—

stock

Proceeds—To

Uranium & Mining
Co., Denver, Colo.
May 27 (letter of notification) 3,000.000 shares of

Co., Commercial Standard Building, Fort

Office—616 South Main St., Tulsa, Okla.

Office—

stock

common

Christi, Texas.

cent). Price—Two cents per share.
Proceeds—For expenses incident to mining operations.
Office—170 Vista Grand Road, Grand Junction, Colo.
Underwriter
Columbia
Securities
Co., Denver and
Grand Junction, Colo.

reserves.

mining activities.

—None.

1, Texas.

(par

to

2 filed 500,000 shares of
cents). Price—At the market.
stockholder. Office—Corpus

Standard Life Insurance Co.,
Worth, Texas
July 28 (letter of notification) 10,000 shares of common
stock (par $10).
Price—$15 per share. Proceeds—For
capital and surplus. Underwriter—Commercial Stand¬

stock

incident

State

if Corpus CHristi Refining Co.

Fort

mon

expenses

South

Sept.

21.

Commercial Uranium Mines, Inc.
July 12 (letter of notification) 15,000,000 shares of

to stockholders of
record
(with an oversubscription

Colorado.

Gas

Insurance

basis

St., Room 211, Salt Lake City, Utah.
Underwriter—Mountain States Securities Corp., Denver.

Commercial

ard

be offered

Coronado Uranium
Corp., Salt Lake City, Utah
Aug. 16 (letter of notification) 2,400,000 shares of com¬
mon stock.
Price—At par (10 cents per
share). Proceeds

Corp.,

System, Inc., New York (9/21)
Aug, 25 filed $40,000,000 of debentures, series E; due
1980. Proceeds—Tc repay $20,000,000 of bank loans and
for construction program.
Underwriter — To be de¬
termined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—
Expected to be received up to 11:30 a.m. (EDT) on

Worth

to

l-for-8

Office—27-29 Denison
Parkway East, Corning.
Underwriter—None.

N. Y.

oil and mining activities.
Office — 350 Equitable
Bldg., Denver, Colo. Underwriter—Birkenmayer & Co.,
same city.

'

a

—

For

Sept.

par)

on

privilege); rights to expire on Sept. 26. Price—To be
supplied by amendment. Proceeds
For construction

York; and Shaiman & Co., Denver, Colo.

(par 20 cents).

6

program.

Colorado Oil & Uranuim Corp.
June 7 (letter of notification) 300,000 shares of common
stock

(no

Sept.

Colo.; and Joseph McManus & Co., New York, N. Y.

held.

ceeds—For

Price—At

expenses

stock for

each

($1

par

incident

to

per

oil

five

shares

share).

and

gas

Bldg.,
Cleek, Spo¬

of

Pro¬

activities-

Office—1077 San Jacinto
Bldg., Houston, Texas.
writer—Lehman Brothers, New York, N. Y.

Pro¬

ceeds—For mining expenses. Office—326 Wiggett
Coeur d'Alene, Idaho. Underwriter—M. A.

Under¬

Dawn Uranium & Oil
Co., Spokane, Wash.
(letter of notification) 1,500,000 shares of com¬
stock. Price
10 cents per share.
Proceeds—For
uranium and oil exploration.
Office—726 Paulsen Bldg..
Empire State Bldg., same city. -

kane, Wash.

June 16

if Conlon-Moore Corp., Cicero, III.
Aug. 29 (letter of notification) $300,000 of first mortgage
(secured) 5% sinking fund bonds, series A, dated Oct. 1,

mon

—

1955, to mature Oct. 1, 1967. Price — $100 per bond.
Proceeds—To redeem outstanding first mortgage
sinking
bonds. Office—1806 South 52nd Ave.,

Day-Brite Lighting, Inc., St. Louis, Mo.
Aug. 12 filed 259.410 shares of common stock (par
pany

of which

Cicero, 111.

111.

panies that may be organized
West 22nd St., New York City.
dan

&

29

Production

for the

account

of the

$1),
com¬

Underwriter

—

Scherck, Richter Co.,

if Debutant Mineral Corp.
Aug. 29 (letter of notification) 300.000 shares of common
stock. Price—At par ($1
per share). Proceeds—For min¬
ing expenses. Office—139 N. Virginia St.,
Reno, Nev.
Underwriter—None, all sales to be made through Clancy
B. Hamblen, President.

acquired. Office—118
Underwriter—J. J. Rior-

or

Corp.

filed

$8,700,000 of 15-year 5V2% income de¬
bentures due Sept. 1, 1970 and 870,000 shares of
common
stock
(par 10 cents) to be offered in units of $50 of

•

Detroit Steel Corp. (9/20-21)
Aug. 30 filed $30,000,000 of first mortgage
sinking fund
bonds due 1970. Price—To be
supplied by amendment.

debentures and five shares of stock.
Price—$50.50 per
unit. Proceeds—For acquisition of
production payments.
Office—Las Vegas, Nev.
Underwriter—First California

Co., Inc., San Francisco, Calif.

are

Proceeds—For

working capital.
St. Louis, Mo.

Co., Inc., New York City.

Continental

50,000 shares

and 209,410 shares for three selling stockholders.
Price—To be supplied by amendment.

Consolidated Fiberglass, Inc.
Aug. 4 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50
per share. Proceeds—
For advance to Alumin-Aire,
Inc., a subsidiary, and for
acquisition of, advances to and investment in other com¬

Aug.

ordinated

all

East

—

South,

Lake

Corp.,

June 17 (letter of notification) 120,000 shares of common
stock (par 25 cents). Price—$2.50 per share. Proceeds—

fund

Neb.

Salt

& Co.

Brothers,

Lake

Copper Blossom Uranium & Mining Co.
June 24 (letter of
notification) 5,000,000 shares, of capital
stock (par one cent). Price—Five cents
per share. Pro¬
ceeds—For mining expenses. Office—65 East 4th

Corp.

Underwriters—Dillon, Read

mining operations. Office—65
City, Utah. Underwriter
Corp., same city.

Salt

Securities

be

purposes.

Dallas,

Underwriter—Illinois Securities Co., Joliet,

Colo.

June 8

South,

Ranch

Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,

stock

Proceeds—For

$100,000,000

Price—To

Co.,

Copper Blossom Uranium & Mining Co.
(letter of notification) 5,000,000 shares of capi¬
tal stock (par one
cent). Price—Five cents per share.

mining expenses, etc. Office—2630 South
Underwriter—Denver
Denver, Colo.

filed

31

1970.

Securities

June 24

(9/15)
of debentures due Sept. 1,
supplied by amendment. Proceeds
—To furnish working funds to the corporation's sub¬
sidiaries for the purchase of receivables and for other
Aug.

Underwriter—Central

purposes.

Texas.

Inc.,

i

if Cameo, Inc., Houston, Texas (9/21)
Sept. 1 filed 100,000 shares of common stock (par $1), of

Cook Industries, Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which 107,915 shares "are to
be sold
by company and 92,084 shares by a selling stockholder.
Price—$1.50 per share. Proceeds—For general corporate

non¬

West, Salt Lake City, Utah.

Securities,

Columbia

Hecla, Inc.

share§„of

Cisco Uranium Corp., Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
stock
(par one cent).
Price—Three cents per share.

Underwriter

Gas

120,000

Charleston, W. Va.
Co., same address.

short-ter^n

Call &

E.

Office—505

capital.

—

fice—403

Inc..

Service,

notification)

voting common stock, class A—(par 50 cents) and 60,000
shares of voting common stock, class B (par 10 cents)
to be offered in units of two class A and one class B

—

I
Bo jo Uranium Co., Salt Lake City, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For expenses incident to mining operations.
Of¬

Parking

(letter Of

Building,

Brickley, Harney Hotel, Rapid City, S. D.

Morris

1

Thursday, September 8, 1955

...

Proceeds—Together

with

other

funds

and

issuance

of

$6,000,000 in 6% cumulative preferred stock at par ($100
share) to retire RFC note amounting to
$38,180,000.

per
«

Underwriter—Halsey, Stuart

&

Co.

Inc.,

Chicago

and

Volume 182

New York.

financing
•

.Number 5462 vl. The Commercial and Financial Chronicle

Meeting—Stockholders
Sept. 16.
v

to vote

Fowler Telephone Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par

approving

on

on

Detroit

Steel Corp.
(9/20)
Aug. 30 filed 503,155 shares of common stock
be offered

to

for

subscription b.y

of record Sept. 20 on the basis of
five shares held (with an

one

new

share for each

oversubscription

Price—To be not

more

(in denominations of $1,000 each). Proceeds—To retire
existing debt, acqqire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,
Omaha, Neb.

(par $1),

stockholders

common

privilege).

than 80% of the market price im¬

Freedom

mediately prior to the offering. Proceeds—To help retire
RFC note. Underwriter—None
(see also proposed bond
financing above).

Price—$22

stock.

Price—At

par

(one cent

share).'

per

Pro¬

expense^ incident to mining activities. Office
Exchange Place, Salt Lake City, Utah. Underwriter

«—Western States Investment
Co., same city.
Dix Uranium
Corp.,

University Ave., Provo, Utah.
Investment Co., Provo, Utah.

Aug. 1 (letter of notification)

Underwriter

15,000,000 shares of com¬
cent per share).
Pro¬
ceeds—For mining expense?. Office—515 Deseret Bldg.,
Salt Lake City, Utah. Underwriter — Moab Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.

Mines, Inc., Denver, Colo.
July 12 (letter of notification) 1,300,000 shares of

—

—

mining

operations.

Office—352 Colorado National
Bldg., Denver, Colo. Un¬
& Co., Denver, Colo, and G.

derwriters—R. L. Hughes
W. Allen & Co.,

Cheyenne, Wyo.

Gas

Empire Securities Corp., Las Vegas, Nev.
General Capsule Corp., Fraser, Mich.
Aug. 9 (letter of notification) 285,000 shares of class A
common stock (par 10
cents). Price—$1 per share. Pro¬
ceeds—For equipment and engineering; inventory, pro¬
motion and sales and working capital.
Office — 31425
Fraser Drive, Fraser, Mich.
Underwriter—General In¬
vesting Corp., New York, N. Y.

Underwriter—None.

common

(par $2.50).

account

Price—$20 per share. Proceeds—For
selling stockholder.
Underwriters

of

—

Powell &

Co., Fayetteville, N. C. and McCarley & Co.,
Inc., Ashville, N. C.
•

Eastern

it General

Lime

Corp., Kutztown, Pa. (9/13)
$800,000 of 15-year 6% convertible de¬
bentures due Sept. 1,
1970, and 30,000 shares of common
stock (par $2).
Price—To be supplied by amendment.

Aug.

10

Philadelphia, Pa.;
Allentown, Pa.

Warren

and

W.

York

&

a

new

Co., Inc.,
Co., Inc.,

pipeline. Office—2509 West Berry
Street, Fort Worth, Texas. Underwriter—None.

(par $20) and 7,500 shares of com¬
(par $10), to be offered in units of one share
Price—$35 per unit.
Proceeds—For working

Pioneer

Lake

City,

Utah.

Farm
June 28

Underwriter

—

Eliason,

to

Federation

members
and

of

the

American

State Farm

to

Bureau

Farm

local organization.

Price—At 100% of principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with
require¬
ments of surplus to
policyholders under New York and
other'state laws. Underwriter—None.

stock

ments

650.000

Fair

shares.

Stores

thereon.

two

Proceeds

—

To

210

from

and for improve¬
Eastman, Dillon & Co.,

—

to

be

offered

preferred

delphia

in

and

Dairy

one

share

and

Philadelphia

Fort

Pitt

shares

Products

6hares of Foremost

ferred

stock

common

five

of

Co.,

on

for each

shares

common

common

Inc.,
of

stock

the

—For

(par $2)
of

basis

Philadelphia

Foremost

Inc.

(two cents per share).
Proceeds
Office—E-17 Army Way, Ogden,
Intermountain Brokerage

expenses.

share for each 33

new

Sept.

26.

shares

&

Co.,

New

York

agents.

Electric

Office—Pittsburgh, Pa.

:

employees at rate of five
shares for each full year of employment; then to general
public. Price — To stockholders and employees, at par
to

be first offered

to

for

sale

in

held; rights to expire

share.

per

Proceeds—For

Hunt

St., Derby,

Uranium

Corp., Green River, Utah
Aug. 22 (letter of notification) 1.200,000 shares of
stock.

mon

on

con¬

Price—At

com¬

(25 cents per share). Pro¬
ceeds—For expenses incident to
mining activities. Un¬
derwriter

—

Salt Lake

par

Kl Aagaard, 323 Newhouse Bldg.,

Elmer

City, Utah.

Industrial

Hardware Mfg. Co.
(amendment) $1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock (par 50
cents),

May 12
of

which 85,000 shares are to be sold to Seymour and
Offerman at $5 per share.
Price—To be sup¬

Bernard

plied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.*
Inc. and Weill, Blauner & Co., Inc., both of New York.
Inland Oil & Uranium Corp., Denver, Colo.
July 18 (letter of notification) 1,200,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For expenses incident to oil and gas activities^
Office—3975 East 58th

Ave., Denver, Colo.

Underwriter

—Shaiman & Co., Denver, Colo.

International

Aug. 23 filed

Investors

200,000

Price—At market.

side
ties
•

(par $1).

investment.

Business

foreign securities of the free world out¬

the United

of

Inc., New York
shares of capital stock

Proceeds—For

States.

Underwriter—I. I.

I.

Securi¬

Corp., 76 Beaver St., New York, N. Y.

Interstate Amiesite Corp.

July

filed $438,200 of .5(4%

19

debentures

convertible

due

1965, to be offered first for subscription by stock¬
holders at the rate of $20 of debentures for each 1ft
shares held. Price
To be supplied by amendment.
—

For

working capital. Business — Bituminous
paving materials. Office—Delaware Trust Bldg.,
Wilmington 99, Del. Underwiter—None. Statement ef¬
—

concrete

fective Aug. 29.

it Investment Co. of America, Los Angeles, Calif.
Sept. 1 filed (by amendment) an additional 2,000,000
common

stock.

Price—At market.

Proceeds—

Iota Uranium Corp.
July 26 (letter of notification) 1,200,000 shares of com¬
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining costs.
Office—1414 So. Michigan
mon

Underwriter—Columbia Secu¬

Irby Bros. Machine & Iron Works
Aug. 22 (letter of notification) 75,000 shares of common
stock (par $1). Price — $2 per share.
Proceeds — For
field erection equipment, to increase steel inventory and

working capital. Underwriter—Gates Carter & Co., Inc.,,
Hatten Bldg., Gulfport, Miss.
J-A

Uranium,

Inc., Salt Lake City,

Utah

Aug. 19 (letter of notification) 10,000,000 shares of capi¬
tal stock (par one cent), Price—Three cents per share.
Proceeds—For expenses incident to mining activities.
Office—711-12 Continental Bank Bldg., Salt Lake Cityr
Utah. Underwriter — Ackerson-Hackett Investment Co.,
Salt Lake City,

Utah.

Jurassic Minerals, Inc.,

Cortez, Colo.

2,855,000 shares of non¬

assessable common stock (par one cent).

Price—10 cents-

Proceeds—For expenses incident to mining
activities.
Office — 326 West Montezuma St., Cortez,
Colo. Underwriter — Bay Securities Corp., New York,
per

share.

New York.

Kachina

Uranium Corp., fteno,

Nov.

May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses.

Office—206 N. Virginia St., Reno,

Underwriter—Whitney, Cranmer & Schulder, Inc.,

Nev.

Denver. Colo.

it Kansas Co., Russell, Kan.
Aug. 26 (letter of notification) 100,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ex¬

incident to oil and gas

penses

Ave., Russell, Kansas.

Wichita

• Keeling Oil

& Uranium Corp.

(letter of notification) 1,000,000
Price—30 cents per share

July 29
mon

Office 107 L.
Underwriter—None.

activities.

stock.

incident to mining activities.
Denver, Colo.

shares of com¬
Proceeds—For
Underwriter —

Securities Investment Co.,

Light Co., Ltd., Hilo, Hawaii
Aug. 1 filed 25,000 shares of common stock to be offered
for subscription by stockholders of record Sept. 5 on the
basis of one new share for each five shares; unsubscribed

per

Underwriter—Barrett Herrick & Co., Inc., New York.

as

shares

Price—$22

Kirby Oil & Gas Co.
8 filed 200,000 shares

of common stock
shares are for the account of

(par $1),
the com¬
pany and 100,000 shares for the account of the Murchison-Richardson financial interests of Texas. Price—To
be supplied by amendment.
Proceeds—To retire out¬
standing bank loans and for exploration of oil and gas
of which 100,000

Hilo

offered

struction expenditures.
Office—33 Elizabeth
Conn.
Underwriter—None.

expenses

Uranium Corp.

Underwriter—Dobbs

be
one

•

July

City, will act

Proceeds—For working capital; for exploitation
system; and for marketing of "Tropicinfra-red space heater.




Colo. Underwriter—None.

Underwriter—United

etc.

to

and

Housatonic Public Service
Corp.
Aug. 15 (letter of notification) 11,225 shares of common
stock (par $15)
being offered for subscription by com¬
mon stockholders of record
Aug. 23 on the basis of one

expenses,

"Totosave"

Ray"

par

stock

$100 debenture, or
multiples thereof. Price—$400 per unit. Proceeds—For
working capital. Underwriter—None. O. Strother Simp¬
son, of Tulsa, Okla., is President.

cents).

for

(10/17)

Price—$3

share.

share

April 12 filed 200,000 shares of common stock (par 10
Price—$1.50 per share. Proceeds — For mining

pre¬

June 30 filed 300,000 shares of common stock
(par IOC),
of which 250,000 shares of for account
of company and
50,000 shares of five selling stockholders.
of

Price—At

Hawk Lake

share. Underwriter—None.

Packaging International,

new

Corp., Ogden, Utah.

4(4

common

Bldg., Denver,

mining

Utah.

Phila¬

of

one

-

exchange for 43,807 shares of second

3,349

Boston

stock.
common

to be offered for subscription by stock¬

Half Moon Uranium Corp., Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital

New York.

Foremost Dairies, Inc.
Aug. 18 filed 202,925 shares of

(par $1)

(par $100)

shares of

Aug. 26 (letter of notification)

Insurance Co.

Industries, Inc., Toledo, Ohio
Aug. 29 (letter of notification) 5,500 shares of non¬
assessable common stock (par $1), to be offered under
employees' stock plan. Price—By amendment. Proceeds
—For working capital.
Office—518 Jefferson Ave., To¬
ledo, Ohio. Underwriter—None.

tracts of land

Underwriter

Life

it Gregory

16

purchase

15 cents per share.

held; stock not subscribed for by
Sept. 10, 1955 will be offered to public. Price—To stock¬
holders, $3 per share; and to public, $5 per share. Pro¬
ceeds—To increase capital and surplus accounts. Office—

days.
remaining 650,000 shares of common stock are to
placed privately. Price—$50 per unit; and $1 each
the

—

holders of record June 10 in the ratio of

The

Food

Price

for each three shares

11 shares of stock for each 20 shares of
Food Fair Stores
common
stock held; rights to

for

cent).

June 23 (letter of notification) 45,583 shares of common

Food Fair Properties, Inc. (9/13)
Aug. 17 filled $7,691,250 of 20-year debentures due Sept.
1, 1975, and an aggregate of 2,342,075 shares of common
Etock
(par one cent), of which the deebntures and
1,692,075 shares of stock are to be offered for subscrip¬
tion by common stockholders of Food Fair
Stores, Inc.
of record Sept. 13 on the basis of
$50 of debentures and

be

one

Great Eastern Mutual

•

expire in about

(par

Gob Shops of America, Inc.
July 27 (letter of notification) 99,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For gen¬
eral corporate purposes.
Office—Pawtucket, R. I. Un¬
derwriter—Weill, Blauner & Co., Inc., New York.

Bureau

Federations and

60

Avenue, Chicago 5, 111.
rities Co., Denver, Colo.

it Glenwood Mining & Uranium Corp.
(letter of notification) 1,000,000 shares of com¬
mon stock.
Price—30 cents per share. Proceeds — For
expenses incident to mining activities.
Underwriter —
Peters, Writer & Christensen, Denver, Colo.

Taylor,

of

com¬

July 29

Family Mutual Insurance Co., Albany, N. Y.
filed $1,500,000 of 5% debentures to be offered

directly

com¬

cents per share.
Proceeds — For
mining activities.
Underwriter—
50 Richards St., Salt Lake City,

nell, Inc., Denver, Colo.

Vegas, Nev.

debentures

units

shares of

Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Con-

(par 50 cents). Price—$1 per share. Proceeds—
mining expenses. Office—2320 South Main Street

>

Investments,

stock

mon

stock

Cafarelli Co., Las

to

Gibralter Uranium Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of

Corp., Cleveland, Ohio.
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital

1,000

For investment.

Utah.

First Cleveland

Salt

Price—10

incident

expenses

capital to finance general expansion.
Office—169 East
Washington Row, Sandusky, Ohio.
Underwriter — The

For

stock.

mon

Home-Stake. Production Co.,
Tulsa, Okla.
May 12 filed 60,000 shares of capital stock (par $5) and

Proceeds

it General Mining & Development Corp.
(letter of notification) 3,000,000 shares of

tive preferred stock
stock

North,

July 25

Erie County Investment
Co., Sandusky, Ohio
Aug. 10 (letter of notification) 7,500 shares of cumula¬

each.

Co.,

Homes, Inc.
Dec. 15 filed 300,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.

—For construction of

of

Insurance

General

Empire Southern Gas Co., Fort Worth, Tex.
Aug. 4 (letter of notification) 12,000 shares of common
stock (par $5) to be offered for
subscription by stock¬
holders. Price—To
stockholders, $21 per share; and to
public, at market (estimated at $25 per share). Proceeds

mon

Guaranty

($20 per share); and to public, at prevailing market price
($25.87V2 per share on July 22, 1955). Proceeds — For
expansion and improvement. Underwriter—None.

—To invest in

Winter Park, Fia.
Aug. 26 (letter of notification) 50,000 shares of common
stock
(par $2.50).
Price—$6 per share. Proceeds—To
increase capital and paid-in surplus.
Office—130 Park
Avenue, North, Winter Park, Fla. Underwriters—Secu¬
rity Associates, Inc., Winter Park, Fla., and Grimm &
Co., New York City.

filed

Proceeds—To repay bank loans and to establish
quarry in Oley, Pa.
Underwriters—Stroud &

Mining & Oil, Inc., Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬

tal stock (par five cents).
Price — 25 cents per share.
Proceeds—For oil and mining expenses. Underwriter—•

associated companies. Subscriptions
will be accepted from
Sept. 6 through Sept. 30. Price—
$47 per share.
Proceeds—For general corporate pur¬

the

Hills

Aug. 1

its subsidiaries and

stock

address.

same

•

Drexel Furniture
Co., Drexel, N. C.
Aug. 16 (letter of notification) 14,000 shares of

(one

par

—

Dow Chemical
Co., Midland, Mich.
Aug. 5 filled 200,000 shares of common stock (par $5)
being offered to employees of company and certain of

poses.

Price—At

Gallina Mountain Uranium Corp.
July 29 (letter of notification) 500,000 shares of common
stock (par one cent). Price—An aggregate of $50,000.
Proceeds—For mining expenses. Office—82 Beaver St.,
New York. Underwriter
Prudential Securities Corp.,

com¬

stock (par one cent).
Price 20 cents per share. Pro¬
For expenses incident to

ceeds

stock.

mon

Dome Uranium

mon

(par $10).
Proceeds—For capital and surplus.

share.

Fremont Uranium Co., Salt Lake City, Utah

Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290
Weber

per

life, title and
mortgage.
Office—2054 University Avenue, Berkeley,,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
company by Uni-Insurance Service Corp.

ceeds—For

North

Co., Berkeley, Calif.

Business—All insurance coverages, except,

Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon

Insurance

June 6 filed 1,000,000 shares of common stock

Dinosaur Uranium

—15

(1001)

leases.

Underwriters—Allen & Co., New York: and

seller.

Pierce

&

Co.,

Dallas,

Texas.

^

Offering

Re¬
Post¬

poned indefinitely.

_

Continued

on

page

3£

34

The Commercial and Financial Chronicle

(1002)

Continued

from

•

33

page

Lamson & Sessions Co.,

Cleveland, O., (9/19-23)

shares of cumulative convertible
preferred stock, series A (par $50), of which 2,500 shares
are to be offered to holders of outstanding
cumulative

Aug.

filed

29

62,500

share-for-share exchange and 60,000
shares will be offered publicly.
Price—To be supplied
by amendment. Proceeds — Together with other funds,
for construction of new plants in Brooklyn, Ohio, and in
Bedford Park, 111. Underwriter—McDonald & Co., Cleve¬
land, Ohio.
preferred stock

on a

Landa Oil Co., Dallas, Texas
Aug. 19 (letter of notification) 70,000 shares of common
stock (par 10 cents) to be first offered for subscription
by stockholders.
Price — To stockholders, $3.50 per

share. Proceeds—For ex¬
gas activities.
Office — 5738
North Central Expressway, Dallas 6, Tex. Underwriter—
Central Securities Co., Dallas, Tex.
share; and to public $4.25
penses incident to oil and

Lander Valley

Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par two cents).
Price—10 cents per share.
Proceeds—For expenses incident to mining activities.
Office—c/o Warren E. Morgan, President, 1705 East First
South, Salt Lake City, Utah.
Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
Leborn Oil & Uranium Co.
stock.

Price—At par

(five cents per share). Proceeds—
For mining expenses.
Office — 124% South Main St.,
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.

Aug.

29

cents).

Oil

Corp., Jefferson, Texas

—For payment of liabilities and expenses incident to

oil
and gas and mineral activities. Underwriter—First Cali¬
fornia Co., Inc., San Francisco, Calif.
and

Accident

Co.

Insurance

of

Alabama

June 2 filed 750,000 shares of class B (non-voting) com¬
mon stock (par $1).
Price—$3 per share. Proceeds—To
increase capital and surplus.

Office—Gadsden, Ala. Un¬
None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of the com¬
derwriter

—

pany.
•

Link-Belt Co., Chicago,

III.
Aug. 12 filed 134,433 shares of

common stock (par $5)
exchange for the common stock of
Syntron Co. at rate of 5.4 shares of Link-Belt stock for
each Syntron share. The exchange will become effective
if 95% of the 24,895 shares of outstanding Syntron stock
are deposited for exchange;
but Link-Belt reserves the
right to declare the exchange effective if not less than
80% of Syntron shares are so deposited in exchange.
Stockholders to vote Sept. 26 on acquisition.

to

be

offered

60,000

shares

of

capital

in

Lyman-Farnsworth Corp.
May 6 (letter of notification as amended) 3,000,000 shares
of capital stock (par one cent). Price—10 cents per share.
Proceeds—For mining operations. Office—201 No. Main
St., Salt Lake City, Utah. Underwriter—Pioneer Invest¬
ments, Las Vegas, Nev.
•

Mackey Airlines, Inc., Ft. Lauderdale, Fla.
July 29 filed 333,334 shares of common stock (par 33%
cents), of which 256,383 shares are being offered for
subscription by common stockholders of record Aug. 18
at the rate of

one share for each
3% shares held; rights
expire on Sept. 16. Of the remaining 76,951 shares,
71,429 shares were offered to Joseph C. Mackey, Presi¬
dent, and 5,522 shares to employees. Price—$2.50 per
share. Proceeds
For purchase of
equipment and for

to

New

Co.

stock

stock
For

Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
Ohio Power Co.

Underwriter

Co., Washington, D. C.

-c.1

Merritt-Chapman & Scott Corp., New York
June

filed

28

$12.50)

being

—

•/

:

Inc.; Harriman Riplley & Co. Inc. and Stone & Web¬
Corp. (jointly); Kuhn, Loeb & Co.; Blyth/
Co., Inc.; Union Securities Corp. and Salomon Bros.
& Hutzler (jointly); The First Boston Corp. Bids—To be
received up to 11 a.m. (EDT) on Sept. 20.
Ohio Power Co.

stockholders of Ten¬
iy4-for-l basis;
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common

ProbKuhn,
Loeb & Co.; Harriman Ripley & Co., Inc. and Stone &
Webster Securities Corp.
(jointly); The First Boston
Corp.; Union Securities Corp. and Salomon Bros & Futzler (jointly). Bids—To be received up to 11 a.m. (EDT)

1%-for-l

Underwriter—None.

Sept. 30.

on

Mesa-Loma

Mining Corp., Fort Collins, Colo.
2,955,000 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For expenses incident to mining operations.
stock

Office—415 Peterson

St., Fort Collins, Colo. Underwriter

—Bay Securities Corp., 115 Broadway, New York, N. Y.
Mia

Mining Corp., Salt Lake City, Utah
(letter of notification) 1,1*96,000 shares of non¬

assessable

common

share.

per

stock (par five cents).

Proceeds

activities.

—

Ottilia

Price—25 cents

For expenses incident to mining

Aug.

Office—535 Atlas

stock.

Price—Five cents per share. Proceeds

-Vegas, Nev; UfiderwriteTT^Hennon &
Roberts, Las Vegas, Nev.
\

Utah Uranium

mon

Underwriter
Brokers, Salt Lake City, Utah.

—

Proceeds

—

contingencies.

To make payment of

Underwriter—Carr

&

Co., Palm Beach,

Co., Detroit,

JP id.

Magnolia Park, Inc.
Aug.

8

shares

(letter
of

of

common

notification)
stock

(par

maximum

of

600,000

10

cents) to be offered
subscription by stockholders. Price—To stock¬
holders, 50 cents per share; unsubscribed shares to pub¬
lic, 62% cents per share. Proceeds—For general
corpo¬
first for

rate purposes.

Underwriters—Gearhart & Otis, Inc. and
Corp., both of New York City; and
T. J. Feibleman &
Co., New Orleans, La.
Hunter

Securities

•

Maloney (M. E.) & Co., Inc. (9/14)
Aug. 5 (letter of notification) 289,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
wo

Office

—

capital.
511

writer—A. C.

Business

—

General

contractors.

Center Ave.,
Mamaroneck, N. Y. Under¬
Champlain & Co., New York, N. Y.

Morning Sun Uranium, Inc., Spokane, Wash.
14 (letter of notification) 700,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses. Office — 415 Paulsen
Bldg., Spokane, Wash. Underwriter—Pennaluna & Co.,
same city.

June

Mortgage Associates, Inc., Philadelphia, Pa.
June

7

ing

(letter of notification) 20,000 shares of 60-cent
preferred stock (par $5) and 20,000 shares
of common stock (par 10 cents).
Price—For preferred,
$10 per share; and for common, $2.50 per share. Proceeds

stock

Pacific Power & Light Co.

•

convertible

Buffalo, N. Y.

fl*ed 43,000 shares of common stock (par $5) beofferedJn exchange for all of the
outstanding capital
of The Citizens National Bank of
Springville on
the basis of
4% Marine Midland common shares for each
■

ug" A

one

share of Citizens stock held

as

^subject to acceptance by holders

of

Aug. 19.

The offer

of not less than 80%

(8,000 shares) of Citizens stock and will
expire Sept. 9.
Mascot

Mines,

—

Proceeds —For

expenses incident to mining activities.
Underwriter—Standard Securities Corp.,
Spokane, Wash.

• Mason Investment Fund,
Washington, D. C.
(letter of notification) $20,000 face value 6%

Aug. 28

Mason investment fund
certificates. Price—At face value
Proceeds—To reimburse the Mason

Mortgage & Invest-

—

—None.

P: for funds in which it has to expand. Office
15th St., N. W.,
Washington, D. C. Underwriter




it Mt. Union Uranium, | Inc.
Aug. 29 (letter of notification)
vertible

Inc.

Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price
62% cents per share.

—2633

acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope & Co., Scranton, Pa.

stock
at

production

notes

and

of

two

95,000

shares

shares
(par 10 cents), the shares to be issued

rate

of

of

capital

of
as

con¬

a

bonus

shares

for each $1 principal amount of
Each $1 principal amount of notes may
be converted into 10 shares of stock. Proceeds—For min¬

notes purchased.

ing expenses.

as

Sept. 30.
the parent, owns

of Aug. 31; rights to expire on

Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com-,

mon

stock

Proceeds

(par two cents). Price-—10 cents per share.
For mining expenses. Office — 811 BostonJ

—

Bldg., Denver, Colo.
Co., same city.

Underwriter—Amos C. Sudler &

Palestine Economic

Corp., New York

50,000 shares of common stock (par $25)
and $2,000,000 of five-year 5% notes, series 1955. Price
—Of stock, $28 per share; and of notes, at 100% of prin¬
cipal amount. Proceeds — For further development of
Israel industry; development of urban and suburban
areas; extension of credit; financing of exports to Israel;
and working capital and general corporate
purposes.
Underwriter—None, sales to be handled through com¬
July

1 filed

pany

officials and employees.

Panama

*

/. "

Minerals, Inc., S. A.

(Republic of

Panama)
June 30 filed 400,000

Price—$1.25

per

Pandora

shares of common stock (par $1).
Proceeds—For mining expenses.

share.

Underwriter—None.

Uranium Mines,

Inc.

July J4 (letter of notification) 3,000,000 shares of com¬
mon $tock
(par one cent). Price — 10 cents per share.
Proceeds—For expenses incident to mining operations.
Offices—530 Main St., Groad Junction, Colo. Underwriter
Securities Co., Denver 2, Colo, and Salt

—Columbia

Office—c/o Nevada Agency & Trust Co.,
139 N. Virginia St., Reno, Nev. Underwriter—None.

Lake

Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—156 No. University
Ave., Provo, Utah. Underwriter — Lindquist Securities,

May;25 (letter of notification) 300,000 shares of common
stock (par five cents). Price—10 cents per share. Pro¬
ceeds
For mining expenses.
Office — 688 East 21st
South, Salt Lake City, Utah.
Underwriter — TransWestern Brokerage Co., New Orleans, La., and Salt
Lake City, Utah.

Salt Lake

City, Utah.

,

Pacific's

Office—Denver. Colo.

47,500

,

Pacific
June 6

—For construction loans and

Marine Midland
Corp.,

,

outstanding stock and intends to
subscribe for 1,199,849 of the new shares.
Price—At par.
Proceeds^—To repay bank loans.
Underwriter—None.
90.89%

stock.

Corp.
Aug. 19 filled 2,000,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For purchase of
certain claims designated "Lower Claims Group." Office
—Salt Lake City, Utah. Underwriter—None.

City, Utah.

American Telephone & Telegraph Co.,

June 6

Monte Cristo Uranium

Securities Co., Salt Lake

sharefcheld

Monte Carlo

Uranium Mines, Inc.
(letter of notification) 6,000,000 shares of com¬
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses.
Office — 706 Newhouse
Bldg., Salt Lake City, Utah.
Underwriter—Mid-Con¬
tinent Securities, Inc.. same city.

,

being j)j£ered for subscription by preferred and common
stockholders in the ratio of one new share for each six^

Mich.

mon

Pro-

• Pacific
Telephone & Telegraph Co.
July 29 filed 1,339,196 shares of common stock (par $100)

—

general corporate purposes. Underwriters—Atwill &
Co.,
Miami Beach, Fla., and Emerson Cook

share).

(10/4)
Aug. 30 filed $10,000,000 of first mortgage bonds due
1985. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by competitive bidding. Probable bidders—Halsey, Stuart &
Co. Inc.; Union Securities Corp. and Kidder, Peabody &
Co., (jointly); Lehman Brothers, Bear, Stearns & Co. and
Salomon Bros. & Hutzler (jointly); Blyth & Co., Inc. and
White, Weld & Co. (jointly). Bids—Tentatively planned
to be received up to noon (EDT) on Oct 4.

$675,000 to Four Corners Uranium Corp. under a pur¬
chase contract; to use $100,000 each to purchase mining
equipment, to pay for development and driving drift and
for exploratory drilling; and the remainder for working
capital, acquisition of additional properties, and unfore¬
seen

per

„

•

^ Monogram Uranium & Oil Co.
Aug. 31 filed 1,000,000 shares of common stock (par $1).;
share.

("one tent

Light Co.
Aug. 29 (letter of notification) an undetermined number
of shares of common stock (par $6.50) to be offered To
employees under company's stock purchase plan. Price >
—To be 95% of average weekly bid prices in month
prior to subscription.
»

Underwriter—Skyline Securities, Inc., Den¬

per

par

Pacific Power &

ver,

Price—$2

Price—At

stock.

Guss

Mobile Uranium & Oil Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
assessable capital stock (par one cent).
Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office—605 Judge Bldg., Salt Lake

City, Utah.
Colo.

Inc.

ceeds—For expenses incident to mining activities. Office
—419 Judge Bldg., Salt Lake City, Utah.
Underwriter—

For

incident to mining activities.

expenses

International Metals ift llraiiiym,

Pacific

Aug. 12 (letter of notification) 12,000,000 shares of com¬

com¬

—

Office—4703

South 5th St., Las

Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.

mon

Villa, Inc., Las Vegas, Nev.
3,000 shares of capital
par ($100 per share).
Proceeds—For

Price—At

construction of additional units to a motel.

Mitchell Mining Co.,

^ Moab Treasure Uranium Corp.
(letter of notification) 6,000,000 shares of

;

(letter of notification)

16

stock.

Bldg., Salt Lake City, Utah.
Underwriter—First Securities of Denver, Denver, Colo.

July 25

,

Sept. 20.

Orange Community Hotel Co. in the ratio of $120 of new
debentures for each $100 of debentures and 20 shares of;
stock of the Community company. Underwriter—None.

Nina

Aug. 11

r

Orange Hotel, Inc., Dallas, Texas
July 19 filed $450,000 of registered 4% sinking fund
debentures due May 1, 1985, which are to be offered
in exchange for $375,000 principal amount of registered
4% debentures and 3.750 shares of $20 par stock of

(letter of notification)

July 13

¬

writer—To be determined by competitive bidding.
ablel bidders: Blyth & Co., Inc.; Lehman Brothers;

basis; and 548 shares of class B common stockholders of
The Osgood Co. on a l-for-1% basis.
Offer will expire
on

(9/20)

Aug. 17 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under

common

on a

by

&

Products & Chemical Corp. on a

to

determined

ster Securities

Co., Inc. on basis of 1% shares for each Devoe share;
6,621 shares to class B common stockholders of Devoe
1%-for-l basis; 127,623 shares to common stockhold¬
ers of New York Shipbuilding Corp. on a share-for-share
shares

be

Co.

on

53,324

To

—

competitive bidding. Probable bidders: Halsey, Stuart &

314,718 shares of common stock (par
offered in exchange as follows: 102,250
&

basis;

construction. Underwriter

new

-

shares to class A stockholders of Devoe & Raynolds

nessee

(9/20)

Aug. 17 filled $17,000,000 of first mortgage bonds due
Sept. 1, 1985. Proceeds—To repay bank loans and for

—

incident to mining activities.

Uranium & Oil Corp., Fort Worth, Texas
(letter of notification) 265,000 shares of common
(par 50 cents). Price—$1 per share. Proceeds—
uranium and oil exploration. Office—Fortune Arms

June 8

ic Merc-Uranium Corp.
July 20 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price
Five cents per share. Proceeds—For
Law Investment

Co.

Oasis

(letter of notification)

expenses

& Gas

—

Inc., Philadelphia, Pa.
300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
Bliedung, Washington, D. C.
15

Oil

Proceeds
For general corporate purposes. Office —
Bethesda, Md. Underwriter—Lewellen-Bybee Co., Wash¬
ington, D. C.

^

Medical Abstracts,

June

Mexico

Thursday, September 8, 1955

July 27 (letter of notification) 2,500,000 shares of com¬
mon stock
(par one cent). Price—Three cents per-share.

(par

Co., Boston, Mass.

mon

filed 450,000 shares of capital stock (par 10
Price—To be supplied by amendment. Proceeds

Life

filed

19

stockholders of Marion Power Shovel Co.

(letter of notification) 6,000,000 shares of capital

LeCuno

(9/14)
$5).
Price.— To be supplied by amendment. Proceeds — To
certain selling stockholders. Underwriter—Estabrook &

per

Aug. 15

June 8

Massachusetts Indemnity Issurance

Aug.

...

City, Utah.

Pelican Uranium Corp., Salt

—

Lake City, Utah

*rt>rrtMW

p*l.»rm W,

i
.

Volume 182

Number 5462

..-.

The Commercial and Financial

Penn-Utah

Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of com¬

Aug. 4
mon

stock

(par three cents). Price—15 cents
expenses incident to mining

;
,

share.
activities.

per

Proceeds^—For

Office—206 N. Virginia Street, Reno, Nev. Underwriter
—Philip Gordon & Co.,.Inc., New York, N. Y.

Chronicle

(par one cent).
Price—20 cents per share.
For expenses incident to mining activities.
Office—2285 South Jackson, Denver, Colo.
Underwriter

New York, N. Y.

San Juan Uranium

Exploration, Inc.

stock.

For

per

common

Price—At par (10 cents per share).. Proceeds—
mining costs. Office—613 Simms Building, Albu¬
querque,
N. Mex.
Underwriter — Western Securities
1 Corp., Salt Lake City, Utah.
<

Petaca Mining Co., Santa Fe, N. Mex.
Aug. 25 filed 450,000 shares of common stock (par 10
cents). Price—$1.75 per share. Proceeds—For repayment

.of loan

and liquidation of purchase obligations;

equipment;

to buy
Underwriter-

working capital.
Barrett Herrick & Co., Inc., New York.
-

-

and

for

19

Price—12 cents
Proceeds—For expenses incident to mining
activities. Office — 718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo,
share.
.

Fe Uranium & Oil Co.,

Santa

•

Plastic Wire & Cable Corp., Jewett City, Conn.
Aug. 11 (letter of notification) 15,036 shares off common
stock (par $5), being offered to stockholders of record
Aug. 5 on the basis of one new share for each 10 shares

current

plant expansion. Office—East Main St., Jewett
City, Conn. Underwriter—None.
Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment
expense. Office
—Bowie, Md. Underwriter—L. L. Hubble> & Co., Inc.,
Baltimore, Md.
* Puritan Fund, Inc., Boston, Mass.
Sept. 2 filed 4,000,000 shares of capital stock.
market.
Proceeds—For investment.

dence

v

Price—At

Pyramid Electric Co.
May 3 filed 50,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
selling stockholders. Underwriter
S. D. Fuller & Co.,
—

New York.

•
Savoy Oil Co., Inc., Tulsa, Okla.
July 8 (letter of notification) 20,000 shares of common
stock (par 25 cents) being offered for subscription by
stockholders of record Aug. 29 on a l-for-13 basis (sub¬
ject to clearance); rights to expire on Sept. 15, 1955.
Price—$7 per share. Proceeds—For exploration, devel¬
opment and acquisition of properties. Office—417 McBurney Bldg., Tulsa, Okla. Underwriter—None.

Aug.

26

Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock

(par

ceeds

—

Price—32 cents

cent).

one

For

expenses

incident

per

stock

common

mining operations.
Colo.
Underwriters—

Rampart Uranium Co., Colorado Springs, Colo.
July 19 (letter of notification) 2,475,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For expenses incident to mining operations.
Office—
Mining Exchange Bldg., Colorado Springs, Colo. Under¬
writer—A1 J. Johnson & Co., same address.

if Raytheon Manufacturing Co., Waltham, Mass.
Sept. 2 filed 189,165 shares of common stock (par $5), to
be offered

from time to time

employees of

company

officers

to

and

other

key

pursuant to terms of employees'

incentive plan.
Rea

(J. B.)

Co., Inc.

Aug. 12 filed 4,590 shares of common stock (par $100)
and 4,590 shares of class B common stock (no par), of
which 4,000 common

public at
shares

shares

are

to be offered for sale to

and 590 common shares

par

to

offered

be

and 590 class B

to

employees other than Dr.
and Mrs. James B. Rea at $100 and $1 per share, re¬
spectively. The other 4,000 class B shares are to be is¬
sued

are

Dr.

to

rendered

at

$6

per

are to be
President.
Proceeds—For
plant expansion, working capital, etc.
Underwriter—
Ira Haupt & Co., New York. Offering—Expected late in
September.
''

stock (par $1), of which 30,000

common

shares

offered for the account of Henry Blackstone,
To be supplied

—

by amendment.

Oil Corp., Washington,

D. C.
Aug. 15 (letter of notification) 150,000 shares of class A
common stock (par $1) and 75,000 shares of class B com¬
mon stock
(par $1), to be sold in units of two shares of
class A and one share of class B. Price — $3 per unit.
incident to oil activities. Office
Ave., N. W., Washington, D. C.

and

by

Rea

Mrs.

in

consideration

Proceeds—To

Rea.

Dr.

repay

of

services

short-term

working capital and
Office—Santa Monica,
Calif. Underwriters—Smith, Barney & Co., New York;
and William R. Staats & Co., Los Angeles, Calif. Offer¬
ing— Exoected today (Sept. 8). May be placed privately.
indebtedness,

inventory

for

and

other general corporate purposes.

Massachusetts

—1500

Underwriter—None.

share.. Pro-

to

Office—Bryant Bldg., Montrose,
General Investing Corp., New York, N. Y., and Shaiman
& Co., Denver, Colo.

•

of 6% convertible sub¬
(initially convertible into
share) and 110,000 shares of

shares

$600,000

filed

ordinated debentures due 1975

Price

Shumway Uranium, Inc., Moab, Utah
June 20

(letter of notification) 1,200,000 shares of com¬
(par one cent). Price—25 cents per share.
Office — 6 Kirby St.,

stock

mon

Proceeds—For mining expenses.

Moab, Utah.

Underwriter—Skyline Securities Inc., Den¬

Colo.

ver,

Uranium Co.

Silvaire Aircraft &

(letter of notification) 3,000,000 shares of com¬

June 17

(par one cent). Price —10 cents per share).
mining operations. Office—Fort Collins,

stock

mon

Proceeds—For

Colo.

Underwriter—Carroll, Kirchner
Denver, Colo.

& Jaquith, Inc.,

Southwestern Investment Co., Amarillo,

Texas

amount.

Proceeds—To retire debt and increase working

capital.

Underwriter—The First Trust Co. of Lincoln,

;v":;

.

Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For

expenses

1507-8th Street,

incident to mining activities. Office—
Cody, Wyo. Underwriter—Utah Uranium

Brokers, Las Vegas, Nev.
•

(par 10

Underwriters—J. H. Lederer

for

Inc., and McGrath Securities Corp., both of New

Junction, Colo.

Aug. 24 filed 400,000 shares of common stock

N. J., on a

cent).

July 15
ital

(letter of notification) 6,000,000 shares of cap-k
(par one cent). Price—Five cents per share.

Proceeds—For

mining

operations.

Bldg., Salt Lake City, Utah.

Office—530

Judge

Underwriter—Mid Ameri¬

Securities, Inc., of Utah, 26 W. Broadway," Salt Lake
City, Utah.
ca

May 26 (letter of notification) 200,000 shares of
(par five cents).

Price—At market

common

for

Price

—

$1 per share.

(9/28)

Proceeds

corporate purposes.
Co., New York.

general

Lederer

—

(par one
To purchase

Underwriter

—

J. H.

(total not to

Hotel, Inc., Las Vegas, Nev.
filed
(as amended) 3,750,000 shares of com¬
mon stock (par one cent).
Price—$2.50 per(share. Pro¬
ceeds—To construct hotel and for working capital. Un¬

Aug.

11

B.

and
Vegas, Inc., Las Vegas, Nev. Offer¬

300,000 shares of non¬
Price—At par ($1 per share).

(letter of notification)

Office—Virginia Truck
Underwriter—Coombs & Co.

Proceeds—For mining expenses.

Saint Anne's Oil Production Co.

May 9 (letter of notification) 20,000 shares of common
stock (par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and
related activities. Office—Northwood, Iowa. Underwriter

Bldg., Carson City, Nev.

—None.

mon stock.

★ St. Croix Paper Co., Boston, Mass. (9/27)
Sept. 2 filed 1^5,714 shares of common stock (par $12.50)
to be offered for subscription by common stockholders
on

the

held

basis

of

of

one

new

share

for

each

three

shares

rights to exp're about Oct. 11.
Price—To be supplied by amendment.
Proceeds — To¬
gether with funds from insurance company and a bank,
to be used for expansion program.
Underwriter—Estaas

brook &

Sept.

27;

Co., Boston and New York.




Securities

of

Las

Gas Transmission Co.

Tennessee

Aug. 17
—For

Moab,

Underwriters—Stone & Webster Securities Corp.,
White, Weld & Co. and Halsey, Stuart & Co. Inc., all of

tions.

New York.

Tennessee Life & Service Insurance Co.
June 20

(letter of notification) 9,200 shares of common
(par $5) to be offered for subscription by stock¬
Price—$30 per share. Proceeds—To increase

stock

holders.

working capital for

agency expansion.
Office — 1409
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.

Texas Adams Oil Co., Inc., New York, N. Y.
Aug. 11 (letter of notification) 66,600 shares of common
stock (par 10 cents).
Price—75 cents per share.
Pro¬
ceeds—To selling stockholders.
Office—39 Broadway,
New York, N. Y.
Underwriter—Philip Gordon & Co.,

Inc., New York, N. Y.
Eastern

Texas

(letter of notification) 3,000,000 shares of com¬
Price—At par (10 cents per share). Proceeds

expenses

Utah.

if Tampa Electric Co. (9/21)
Aug. 31 filed 197,532 shares of common stock (par $7)
to be offered for subscription by common stockholders of
Sept. 19, 1955 on the basis of one new share for
(with an oversubscription privilege);

each 10 shares held

rights to subscribe

Transmission

Corp.

July 25 filed 273,906 shares of common stock (par $7)
being offered in exchange for shares of capital stock
of Texas Eastern Production Corp. in the ratio of one
share of Transmission stock for each 2.6 shares of Pro¬
duction stock. The offer is contingent upon the tender
before Sept.

or

on

duction

Company

80%

or

12 of at least 263,402 shares of Pro¬

that Transmission will thereafter
capital stock. Up to

so

of Production

more

Aug. 29 tenders for the minimum
stipulated had been received.
Texas

number

of

shares

Toy Co., Houston, Texas

July 8 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;
expansion and working capital. Office—2514 McKinney
Ave., Houston, Texas. Underwriter—Ray Johnson & Co.,
Inc., Houston.
Texas Western Oil &

June 15

stock

mon

Uranium Co., Denver, Colo*

(letter of notification) 5,960,000 shares of com¬

(par

Proceeds—For
National Bldg.,

one

cent).

mining

Price—Five cents per share.
Office — 407 Denver

expenses.

Denver, Colo.
address.

Underwriter—Floyd Kos-

notification) 3,000,000 shares of common
(10 cents per share). Proceeds—
Office—915 Simms Bldg., Albu¬
N. M. Underwriter—IJicks, Newton & Co., Inc.,

June 9 (letter of

Price—At par

stock.
For

mining expenses.

querque,

I

Denver, Colo.

,

Uranium & Oil Corp.

July 1 filed 2,000,000 shares of common stock (par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To
erties presently subject to option

and

for

Office

acquire part of prop¬
in favor of company,

incident to mining and oil activies.
Dallas, Tex. Underwriter — Garrett Brothers,

expenses

—

Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock. Price—At par (50 cents per share). Proceeds—
For mining operations.

Office

City, Utah. Underwriter
Washington, D. C.

Lake

—

—

506 Judge Bldg., Salt

Lewellen-Bybee Co.,
Ariz.

July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—15 Washington St., Tucson, Ariz.
Underwriter—Frank
L. Edenfield & Co., Miami, Fla.
Tunacraft, Inc., Kansas City, Mo.

& Exploration Co.

incident to mining activities, Office—
Underwriter—Honnold & Co., Inc., Salt
City, Utah.

record

(9/14)

Aug. 25 filed $50,000,000 of first mortgage pipe line bonds
due 1976.
Price—To be supplied by amendment.
Pro¬
ceeds—To repay short-term loans and for property addi¬

Vegas, Nev.

Swank Uranium Drilling

Lake

Corp., and White, Weld & Co., both of New

Tri-State Natural Gas Co., Tucson,

Uranium Corp., Carson City, Nev.

assessable common stock.

Ex¬

—

ing—Postponed.
Susan

—

Inc., Dallas, Tex.

16

Coombs & Co. of Las

Offering

Tennessee Gas Transmission Co.
(9/14)
Aug. 25 filed 400,000 shares of common stock (par $5).
Price
To be supplied by amendment. Proceeds—For
property and additions. Underwriters—Stone & Webster

Sun

Feb.

Brothers, New York.
(Sept. 8).

Trans-National

Sulphur, Inc., Houston, Texas

exceed

$150,000). Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.

pected today

York.

derwriters—Golden-Dersch & Co., Inc., New York:

Royal Uranium Corp.
stock

working capital.

lease; to drill three exploratory wells; for exploration
in the Isthmus of Tehuantepec, Vera Cruz, Mexico; and

stock

writer— Vickers

Thunderbird Uranium Corp.

1,200,000 shares of common stock

cents). Price—50 cents per share. Proceeds—For equip¬
ment and accessories; for financing film production^;

Co.,

Rocket Mining Corp., Salt Lake City, Utah

Tel-A-Sign, Inc., Chicago, III.
Aug. 10 (letter of notification) 150,000 shares of common
stock (par 20 cents). Price—$2 per share. Proceeds—To
retire debt; and for new plant and equipment. Under¬

Splendora Film Corp., New York

July 27 filed

and

monies will be refunded.

Tasha Oil & Uranium Co., Denver, Colo.
May 11 (letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
St., Denver, Colo. Underwriter — Carroll, Kirchner &
Jaquith, Inc., same city.

ter & Co., same

Rio de Oro Uranium Mines, Inc.
(9/21-22)
Aug. 15 filed 3,000,000 shares of common stock (par one
cent).
Price—15 cents per share.
Proceeds—For ex¬
penses
incident to mining operations.
Office—Grand

Underwriter—Tellier & Co., Jersey City,
best-efforts basis.
If 85% of issue is not sold,

To be supplied by amend¬

Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
share.
Proceeds
For mining expenses.
Office — 726
Paulsen Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Empire State
Bldg., Spokane, Wash.

own

Aug. 22 filed $2,500,000 of 5% sinking fund capital de¬
bentures, series A, dated Sept. 1, 1955. Holders of $1,000,000 outstanding 5% and 5V2% capital debentures will
be offered the opportunity to exchange their debentures
for
the
new
debentures.
Price —100%
of principal

Neb.

—

repay

York.

Corp. of America, Long Island, N. Y.

Servo

Proceeds—For expenses

Radium Hill

.

Underwriter—Co¬

Bldg., Colorado Springs, Colo.
Co., Denver, Colo.

Shacron

•

Inc.

May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price —r 10 cents per share.
Proceeds—For mining operations.
Office—416 Indepen¬
lumbia Securities

held; rights to expire on Sept. 21. Price—$9 per share.
Proceeds—For additional working capital and to finance

.

Aug.

Price
To

$5,083,000 of bank loans.
Dealer-Manager—Goldman, Sachs & Co., New York.
—

—

shares of non¬

(letter of notification) 925,000
assessable common stock (par one cent).

(letter of notification) 640,000 shares of

Sept. 21.

on

Proceeds

ment.

—

—M. J. Reiter Co.,

Permian Basin Uranium Corp.
June 2

mailed
com¬

stock

Proceeds

35

(1003)

St. Regis Uranium Corp., Denver, Colo,
v
Aug. 15 (letter of notification) 1,500,000 shares of
mon

tw,f.-M

on

Oct. 6, 1955.

Warrants are to be

Aug. 22 (letter of notification) $295,000
of 6% 12-year registered subordinated
bentures, dated Sept.

principal amount
sinking fund de¬

1, 1955 (with stock purchase war¬

(in denominations of $100 each
Proceeds—To refinance and dis¬
charge secured obligation.
Underwriter — McDonald,
rants).

or

Price—At par

multiples thereof).

Evans &

Co.. Kansas City, Mo.

Tungsten Mountain Mining Co., Fallon, Nev.
June 8 (letter of notification) 149,800 shares of common
stock

(par $1).

Price—$1.50 per share.

Proceeds—For

Continued

on

page

36

23

The Commercial and Financial Chronicle

(1004)

Continued

from

page

For

35

Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
mining operations.

Two

Jay Uranium Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share,
proceeds—For mining expenses.
Office—32 Exchange
Place, Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.
Uranium Corp., Salt Lake City, Utah
(letter of notification) 5,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.

Ucon

mining
Vegas, Nev.
city.

Office—210 N. Third St., Las
Underwriter—Lester L. LaFortune, same

Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—Hansen
Uranium Brokerage, Salt Lake City, Utah.

Corp.

13

mon

June 2

manufacture,

mon

tures

Proceeds—For

mining costs. Office—406 Judge Build¬
Utah. Underwriter—Empire Secu¬
Corp., Las Vegas, Nev.

ing, Salt Lake City,
rities

U-Kan Uranium & Oil

Co., Salt Lake City, Utah

May 5 (letter of notification) 260,000 shares of common
ttock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office — Judge Bldg., Salt Lake

City, Utah.
Underwriter
Seattle, Wash.

(letter

12

Securities, Inc.,

v

Union of Texas Oil Co.,

July

Northern

—

of notification)

61,393 shares of com¬
Price—$1.25 per share. Proceeds—
To reduce bank loans, and for development costs and
ether corporate purposes.
Underwriter—Mickle & Co.,
Houston, Texas.
stock

mon

(no par).

United American Investment Co., Atlanta, Ga.
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
balance to be used to engage in mortgage loan business
.

end

related

United

fields.

Underwriter—None.

States Thorium

Corp.
July 21 (letter of notification) 250,Q00 shares of capital
stock. Price—At par ($1 per share). Proceeds—For gen¬
eral corporate purposes. Underwriter—Doxey-Merkley &
Co., Salt Lake City, Utah.
Universal

Oil

Uranium

&

Corp.
July 26 (letter of notification) 5,998,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds
For mining operations.
Office — 7900 West
Colfax Avenue, Denver, Colo. Underwriter — Columbia
Securities Co., Denver, Colo.
—

Universal Service Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Underwriter — None.
Offering —

★ Uranium

Exploration & Copper Co.

of

Nevada

Aug. 29 (letter of notification) 200,000 shares of class A

President, 1202 Carla Ave., Modesta, Calif.

Underwriter

—None.

Uranium, Inc., Salt Lake City, Utah
June 16 (letter of notification) 3,000,000 shares of
(par bne cent).

Price

—

com¬

10 cents per share.

For mining expenses. Underwriter — I. J.
Co., New York. Name Change—The company
formerly known as San Miguel Uranium, Inc.

Proceeds

—

Schenin &
was

Vas

Uranium

&

Drilling Co.,

Monticello,

Utah

mining operations.

incident to mining activities. Office—300 Fremont

St., Las Vegas, Nev. Underwriter—None, stock to be of¬
through officers and directors.

fered

Uranium

Properties, Ltd., Virginia City, Nev.

Co., Kansas City, Mo. (9/14)
Aug. 24 filed 174,540 shares of common stock (par $2.50),
of which 53,200 shares are to be sold for account of com¬
pany and 121,340 shares for selling stockholders. Price—
To be supplied by amendment.
Proceeds—For working
capital and general corporate purposes. Underwriter—

Kidder, Peabody & Co., New York.

Corp., Moab, Utah
June 10 (letter of notification) 10,000,000 shares of capi¬
tal stock. Price—At par (three cents per share).
ProT
ceeds—For mining expenses.
Underwriter—Moab Bro¬

stock

Proceeds

—

State

Corp., Salt Lake City, Utah

(no

par).

30,000,000
Price—One cent

For mining activities.

St., Salt Lake City, Utah.

Office

—

shares
per

of

share.

1101 South

Underwriter—Ander-

ton-Hackett Investment Co., same city.
Utah-Arizona Uranium,

Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
etock (par 16% cents). Price—50 cents
per share.
Pro¬
ceeds—For expenses

Financial

Corp.
Aug. 24 (letter of notification) 50,000 shares of common
stock (par one cent).
Price — $1 per share. Proceeds
—For working capital, etc.
Business — Purchases and
sell commodities.
Office
430 Park Ave., New York.
H. Lederer Co.

Inc., New York.

Mining, Inc.
June 29 (letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds
For mining activities.
Office — 105% East
Pikes

Peak,

Colorado

Springs, Colo.
Underwriter —
Hicks, Newton & Co., Inc., Denver, Colo.
White

Horse

Uranium, Inc., Salt Lake City, Utah

June 9 (letter of notification) 2,900,000 shares of capital
stock (par 2% cents).
Price—10 cents per share. Pro¬

St.,

mining expenses. Office—1030 South Sixth
Salt Lake City, Utah.
Underwriter—J. W.

Wicker-Baldwin Uranium Mining Co.

May 26 (letter of notification) 900,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
For mining expenses. Office—616 Sixth
St., Rapid City,
S. D. Underwriter—Driscoll-Hanson, Inc., same
city.
Wonder Mountain Uranium,
Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
—

Office—414 Denver Nat'l Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.

Under¬

Woods Oil & Gas Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;

Trans-Western

revision

Co., New Orleans, La.

Utah

Grank, Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital
stock.
Price—At par ($1 per share).
Proceeds—For ex¬
penses incident to mining activities.
Office—312 Byington Bldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
Utah Power &

Light Co. (9/13)
July 26 filed $15,000,000 of first mortgage bonds due
1985. Proceeds—To repay bank loans and for construc¬
tion

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp. and Smith, Barney & Co.

(jointly);

Kidder,

Peabody

&

Co.;

Salomon

Bros.

&

Street, New York, N. Y.
Utah Power &

Light Co. (9/13)
July 26 filed 177,500 shares of common stock

(no par).

Proceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive

bidding. Probable bidders: Lehman Brothers; Union Se¬
curities Corp. and Smith,
Barney & Co. (jointly); Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &

of

corporate structure,
etc. Underwriter
Straus, Blosser & McDowell, Chicago, 111.
Yale

&

Utah Southern

June 6

fctock.

Uranium Co., Las

Vegas, Nev.*
(letter of notification) 3,000,000 shares of capital
Price—At par (10 cents per share).
Proceeds—




Towne

Manufacturing Co. (9/9)
106,931 shares of capital stock (par $25)
subscription by stockholders of record
Sept. 9 on the basis of one new share for each six sharesheld; rights to expire on Sept. 26. Price—To be supplied
by amendment. Proceeds—To repay $1,000,000 bank loans

to

be offered for

and for

working capital and general corporate purposes.
Underwriter—Morgan Stanley & Co., New York.
Yellow

Circle Uranium Co.

bonds,

in three

of series B bonds and
C bonds. The new bonds will be
allotted for sales and exchanges up to Sept. 19 in order
000 of series A bonds, $40,000,000

$20,000,000 of series
of

receipt of acceptances.

series

Prices—Of series A, 99%; of
100%; with accrued in¬

B, 98%%, and series C,

Proceeds—To refund and consolidate

terest in each case.

Under¬

writers—Glore, Forgan & Co.; Halsey, Stuart & Co. Inc.;
and Alex. Brown & Sons.

Bank of

California, N. A. (9/13)
announced stockholders on Sept. 13 will
approving the issuance of 52,200 additional
capital stock (par $20), which will first be of¬
subscription by stockholders of record Sept.

vote

on

shares of
fered

for

was

1955 on the basis of one new share for each 10
shares held; rights to expire on Oct. 7, 1955.
Price—•
$70 per share. Proceeds—To increase capital and sur¬
13,

&

Underwriter—Blyth & Co., Inc. and Dean Witter
Co., both of San Francisco, Calif.

if Boston & Maine RR.
was announced stockholders will vote Sept. 29
authorizing the directors to create, issue and dispose
5% income debenture bonds to be exchanged for

Aug. 26 it
on

or

outstanding 5% convertible preferred stock,
funds for redemption of such shares.

to procure

if Burlington Industries, Inc.
Sept. 5 it was reported company plans equity financing.
Underwriter—Kidder, Peabody & Co., New York.

•

Yellowknife

Uranium

Corp.

claims; for working capital and

reserve funds; and for
general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.

other

&

Co., Inc., both of New York City.

York Oil & Uranium Co.
June 3

(letter

tal stock.
—For

of'notification) 10,000,000 shares of capi¬

Price—At par (two cents per share).

Proceeds

mining and oil activities.
Address—P. O. Box
348, Newcastle, Wyo. Underwriter—Empire Securities
Corp., Salt Lake City, Utah.

undertaking

mining

copper

Canada.

on

Underwriter—Allen

Merrill Island, Quebec,
Offer¬
four weeks.

& Co., New York.

ing—Not expected for three or
Central Maine Power Co.
Dec.

31,-W. F. Wyman, President, stated that company
plans to issue and sell some additional common stock,
par $10 (probably to stockholders) in the latter part ol
1955. Proceeds—For construction program. Underwriter
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.

(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
Kidder, Peabody & Co. (jointly). Meeting—Stock¬
holders on May 11 voted to increase the authorized
and

common

stock

from

3,250,000

to

3,500,000

shares.

Of¬

fering—Probably in September.
Commonwealth

Edison Co.

Jan. 24, Willis Gale, Chairman, announced it
Fall before the company undertakes its next

should ba
financing.
construction, which, it is estimated,
will cost about $125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston Corp.
and Glore, Forgan & Co.
Proceeds—For

new

Consolidated Edison Co. of New York, Inc.
14
it was announced company expects to

June
from

the

sell

$40,000,000 to $50,000,000 bonds

current

year.

some time during
Proceeds—For construction program.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley & Co.; The First Boston Corp.
Delaware Power & Light Co.
July 26, Stuart Cooper, President, announced that the
company is planning the issuance of bonds and equity
securities.
nent

It

appears

financing of the

that the first step in the perma¬
will take place sometime

program

Proceeds

—

To repay

bank loans and for

construction

program,
which
includes ' two
plants
which will cost approximately $40,000,000. Underwriters
—To be determined by competitive bidding.
Probable

bidders: (1) For

bonds—Halsey, Stuart & Co. Inc.; Kuhnf
Salomon Bros. & Hutzler
(jointly);
Union Securities Corp.; The First
Boston Corp. and Blyth & Co., Inc. (jointly); White,
Weld & Co. and Shields & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock
(which may be first offered to stockholders)—W. C.
Langley & Co. and Union Securities Corp. (jointly);
Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Carl M. Loeb, Rhoades &
Co.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co. (joint¬
ly): Lehman Brothers. (3) On preferred stock—Blyth
Loeb

&

Lehman

(9/19)

Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
payments under purchase and option agreements for

Crerie

Campbell Chibougamau Mines, Ltd.
Aug. 15 it was reported a secondary offering of about
150,000 shares of common stock will be registered with
the
SEC.
Business—Company, recently formed, is a

late this fall.

July 22 (letter of notification) 5,000,000 shares of com¬
mon
stock.
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses.
Office —223 Petroleum
Building, Salt Lake City, Utah. Underwriter—Morgan
& Co., same city.

Beane

(jointly); Blyth & Co., Inc.; The First Boston
Corp.
Bids—To be received up to noon (EDT) on
Sept. 13 at Two Rector Street, New York, N. Y.

—

Aug. 19 filled

program.

Hutzler; White, Weld & Co. and Stone & Webster Se¬
curities Corp, (jointly); The First Boston Corp.; Lehman
Brothers and Bear, Stearns & Co. (jointly). Bids—To be
received up to noon (EDT) on Sept. 13 at Two Rector

mortgage

consolidated

—

Underwriter—J.

incident to mining activities. Office
—Greyhound Terminal Building, Wes(t Temple & South
Temple Streets, Salt Lake City, Utah.
Underwriter—

Brokerage

RR.

$80,000,000 of series B 4s due Sept. 1, 1980; and $120,000,000 of series C 4!/4S due Oct. 1, 1995.
Through Sept. 9,

of

io be

of 'notification)

Ohio

series, viz: $80,000,000 of series A 3%s, due Aug. 1, 1970;

presently

for

(letter

&

of first

000,000

kerage Co. and National Securities, Inc., 368 South State

West

30

L.

are

Aug. 30 the railroad offered for exchange and sale $280,-

St., Salt Lake City, Utah.

Hicks & Co., Inc., Denver, Colo.

Uranium Technicians

B.

plus.

Wabash Uranium

ceeds—For

common

City Electric Co.
England, President, announced that the
now considering the sale to the public of a
small amount of common stock early next year. Under¬
writers—Probably Union Securities Corp. and Smith,
Barney & Co., both of New York.
1,

directors

Aug. 10 it
Vendo

June 13 filed $600,000 of Grubstake Loans to be offered
amounts of $25 or multiple thereof.
Proceeds—75%

June

Atlantic

Underwriter—Skyline Secu¬

in

invested in U. S. Savings bonds and the balance
equipment and exploration and development e xpenses. Underwriter—None.

porated, New York.

rities Inc., Denver, Colo.

Western

expected

about 20,000

all mortgage indebtedness under one mortgage.

June 20 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For

reported early offer and sale is

was

shares of common stock. Proceeds—To
selling stockholders. Underwriter — Blair & Co. Incor¬

of

1955, holders of refundable bonds will have the right to
exchange thern, par-for-par,. for not more than $60,000,-

Vanura

stock

Sept. 2 it

Baltimore

Uranium, Inc., Modesta, Calif.
Aug. 29 (letter of notification) 500,000 shares of capital
stock.
Price—At par (10 cents per share).
Proceeds—
For mining operations. Office—c/o Lionel R. Van Horn,
^ Vanand

—

stock

(par 10 cents), to be offered in units of
300 shares each. Price—$40 per unit. Proceeds—For ex¬

penses

rebulid and market television pic¬
— Zone Investments Co.,

Wet Mountain

Postuoned.

common

process,

tubes, etc. Underwriter
Fort Worth, Texas.

mon

Houston, Texas

Prospective Offerings
if Aerovox Corp.

Aug.

(letter of notification) 300,000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—To

May

Thursday, September 8, 1955'

.

expenses.

Utore Uranium &

Vactron

.

.

Co.

and

Brothers;

&

Co., Inc. and The First Boston Corp. (jointly); White,
&
Co.
and
Shields
&
Co.
(jointly); Lehman
Brothers; W. C. Langley & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co. »
Weld

.

Volume

Du

Number

182

Mont

5462

...

The Commercial and Financial Chronicle

Broadcasting Corp.
announced that corporation, following

Laclede

(1005)

Gas Co.

Labora¬

tories, Inc. of 1,000,000 shares of common stock as a
dividend, contemplates that additional shares will be

Peabody & Co. and White, Weld & Co. (jointly);
Equit¬
able Securities Corp. and Union Securities
Corp. (joint¬

Aug. 8 it was stated company plans §ale of about $10,000,000 convertible first preferred stock to stockholders.
Underwriter—To be determined by competitive bidding.
Probable
Lehman
bidders:
Brothers, Merrill Lynch,

Aug.

10

it
to

issuance

offered

was

stockholders

&

handled

Co.

vote

some

Oct.

after

Du

Mont

offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel

derwritten.

nancing

B.

This

stockholders.

its

to

Allen

of

Mont

Du

years

class A stock fi¬

Offering—Not expected until

stockholders

when

10,

Laboratories

ago.

of

Laboratories

will

forming Broadcasting firm.

on

Essex County

Electric Co.
reported company plans to issue and sell
some additional first mortgage bonds. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated.
July 18 it

was

if Federal Glass Co., Columbus, Ohio (9/12) —
5 it was reported a secondary offering of 45,000

Sept.

shares of common stock is

soon

Eastman, Dillon & Co. and

expected.

of Ohio investment

group

a

Underwriter—

bankers.
Fischer & Porter

Co., Hatboro, Pa.
Aug. 18, Kermit Fischer, President, announced that the
expects to offer additional

company

shares

common

to

the public in the near future.

Underwriters—Offering of
participating preference shares in October, 1954, was
underwritten by Hallowell, Sulzberger & Co.; Boenning
& Co.; and Suplee, Yeatman & Co., Inc.; all of Phila¬
delphia, Pa.
Florida

Power Corp.

April 14 it
between
bonds.

was

announced

$10,000,000

and

issue and sell

company may

$12,000,000

Underwriters—To be

first mortgage
by competitive

of

determined

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner &
Beane (jointly); Lehman Brothers and
Blyth &
Co., Inc. (jointly); Glore. Forgan & Co.; and The First
Boston Corp. Offering—Expected late in 1955 or
early
1956.

Ford Motor

March

15 it

was

Co., Detroit, Mich.
reported that following

probable 10-

a

for-1 stock split, an offering of approximately 4,000,000
new shares will be made to the
public. Price—Expected
to be around $60 per share.
Proceeds — To the Ford

Foundation.
of

Offering—Probably not until "latter part

September

of

about

200,000 shares
(part for selling stockholders).
Lithium

file

9

it

of

was

reported

that

announced

ceeds—For

corporate

general

plans soon to
SEC covering a

the

purposes.

Long Island Lighting Co.
April 23 it was announced company plans to sell ac
issue of
$15,000,000 first mortgage bonds, series H.
due 1985. Proceeds—For construction program. Underwriter—To be determined

by competitive bidding. Prob¬
bidders—Halsey, Stuart & Co. Inc.; The First Boaton Corp. and Blyth & Co., Inc. (jointly); W. C. Langlej
& Co.; Smith, Barney & Co.; Baxter, Williams & Co
able

Offering—Expected late in 1955.

sion
program.
Certain details of financing and en¬
gineering remain to be completed. Underwriter—A. G.

&

Co.

Inc., Chicago, 111.

A McLean Trucking Co.
Sept. 5 it was reported a secondary offering is soon ex¬
pected of 525,000 shares of common stock. Underwriter
—Shields & Co., New York.
Michigan Consolidated Gas Co.
Aug. 15 it was reported company may issue and sell this
fall $27,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
bidders:

Probable
Weld

Co.

&

Halsey,

Stuart

Co. Inc.;
(jointly);

&

Brothers

Lehman

and

Barney & Co. and Blyth & Co., Inc. (jointly); Harriman
Ripley & Co. Inc. and Union Securities Corp. (jointly).
Co-

$10,000,000 first mortgage
permit.

bidding.

may

if

bonds

issue

market

and sell
conditions

Telegraph

dO/1)

.

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;

Lehman

Brothers; Merrill Lynch, Pierce, Fenner &
White, Weld & Co. (jointty)i; Salomon Bros,
& Hutzler and Union Securities Corp. (jointly);
Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc.
(jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
Beane and

,

_

Warrants will be mailed on
per share). Control—Ameri¬
can Telephone & Telegraph Co. owns about 86.7
of the
presently outstanding common stock. Underwriter —
Oct. 28.
Oct. 1. Price—At par ($100
on

None.

National

Bank of

Washington

Property,
Indiana Ave.,

announced Bank plans to offer to its
stockholders the privilege to subscribe for an additional
205,000 shares of capital stock (par $10) on the basis of
one new share for each two shares held as of Sept. 12.

(par $24), constituting all of the outstanding
shares of this company.
Proceeds — From sale of 943

surplus. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Meeting—Stockholders to vote on Sept. 12
on approving the financing.

ir Heine & Co., New York
Bids

will

be

received

(9/29)
office

the

at

of

Alien

Department

of Justice, Room 664, 101
W., Washington 25, D. C., up to 11 a.m. (EDT) on
Sept. 29 for the purchase from it of 1,068 shares of cap¬

N.

ital

stock

shares to go to the Attorney General of the United States
and from sale of 125 shares to go to another stockholder.

Heller

(Walter E.)

& Co.

July 18 it was reported that the company may be con¬
sidering some new financing. Underwriter—F. Eberstadt
& Co. Inc., New York.

^Houston

(Texas)

Aug.

27

it

was

Price—$30

•

per

National

share.

Proceeds—To increase capital and

Fuel Gas Co.

AOg. 23 company filed with the SEC an application to
offer its common stock in exchange for shares of Penn¬

sylvania Gas Co., a principal subsidiary, on a basis of
1.45 National shares for each Pennsylvania Gas share.
SEC will open

hearings

Sept. 20.

on

Aug. 3 it was ,announced that stockholders approved
a plan of recapitalization and plans to raise not less than

382,000.

nolds & Co., New

It plans to issue and sell $81,200,000 of bonds,

preferred stock), and

over $8,700,000 of common stock.
sold, together with the notes, in units.
Underwriters—Discussions are reported to be going on
with Blyth & Co., Inc., San Francisco, Calif., and Scharff
& Jones, Inc., New Orleans, La.

Stock

•

be

International

Sept.

2

Resources

stockholders

Natural

and
a

would

of

Resources

Fund, Inc.

Natural
of

Resources

Fund, Inc.
Fund, Inc. approved

Canada

of the two firms to continue under the

merger

"International

name

Resources

Fund, Inc." which plans to
file shortly for registration of a new issue of stock of

approximately $15,000,000 to $20,000,000, which, it is
expected, will be publicly offered in early October. In¬
vestment Adviser—Capital Research & Management
Co.,
Los Angeles, Calif.

Underwriter

—

Kidder, Peabody &

(9/8)

RR.

(EDT) on Sept. 8 for

be received up to noon

purchase from the company of
to

certificates

trust

annually to and including
Halsey, Stuart & Co., Inc.;

mature

bidders:

Probable

1970.

$7,500,000 equipment

Corp.

York State Electric & Gas

(10/19)

July 8 it was announced company plans to issue and
sell $25,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.

Kidder,
The First
Boston Corp. and Glore, Forgan & Co. (jointly); Blyth
& Co., Inc. and Smith, Barney & Co. (jointly);
Bidsbidders:

Probable

Halsey,

Stuart

Co.

&

Inc.:

Peabody & Co.; Harriman Ripley & Co. Inc.;

Expected to be received on Oct. 19.

Aug.
the

31

Aluminum

stockholders

&

Chemical

approved

a

Corp.
proposal

McHugh, President, announced that
to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For any bonds,
to be
determined
by competitive bidding.
Probabi*
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
Jan.

to

increase

authorized

preferred stock from 700,000 shares to
1,500,000 shares, of which 700,000 shares are expected to
be publicly offered this Fall, carrying a sinking fund.
Proceeds
Together with funds from private sale of
about $40,000,000 of 3.75% notes, are to be used for
expansion program and working capital. Underwriters—
The First Boston Corp., New York; and Dean Witter &
Co., San Francisco, Calif.
—

17,

Kayser (Julius) & Co.
Aug. 17, it as announced company plans an offering of
stock to its shareholders and borrowing through
longterm

bank

loans.

Proceeds

To

finance

acquisition,
"through purchase, of the net current assets of Holeproof
Hosiery Co. (latters stockholders approved proposal
on
Sept. 6).




—

l

S.

the company will have

Northern States Power Co.

March

29

it

was

announced

that

(Minn.)
new

capital require¬

approximate $31,000,000. Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
ments

•

Keith

for

1955

dealers.

Registra¬

Underwriter—To be determined by competitive
bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The Firsi
Boston Corp.; Kuhn, Loeb &
Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co..

Inc.

Pennsylvania
Feb. 21 it

Electric

Co.

reported company proposes issuance and
$7,500,000 of preferred stock later this year. Pro¬
was

construction

program.
Underwriter—To be
by competitive bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody &
Co.; The Firs;
Boston Corp.; Smith,
Barney & Co.; Harriman Ripley &

determined

Co. Inc.

Portland Trust Bank,
Portland, Ore.
Aug. 15 the Bank offered to its stockholders of recotd
Aug. 11 the right to subscribe on or before Sept 12 for

10,000
the

additional

rate

of

Price—$35
public.

one

shares
new

of

share to

per

capital

share

for

stock

each

(par

four

stockholders; $37

Proceeds-p-To increase capital

$20) ,at

shares

held.

share to

per

and surplus.

Un¬

derwriter—Blyth & Co., Inc., San Francisco, Calif.
Public

Service

Electric

&

Gas

Co.

(10/4)

•

Aug. 8 company applied to New Jersey Board of Public
Utility Commissioners for authority to issue and sell
$35,000,000 of debentures. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
ers

(jointly), Morgan Stanley & Co. and Drexel & Co.
(jointly); The First Boston Corp. Bids—Expected to be

received up to
•

11

(EDT)

a.m.

Oct. 4.

on

Public Service Electric & Gas Co.

(9/28)

Aug. 8 it

was announced that company
may issue and sell
250,000 shares of cumulative preferred stock (par $100).
Underwriters—May be Morgan Stanley & Co., Drexei
& Co. and Glore,
Forgan & Co.

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be

necessary

purposes

in

from

1955

to

outside

obtain

of several million dollars."
a

in

funds

sources—at

for

least

construction

to

the extent
The company has scheduled

large-scale expansion program, involving $79,000,000
order to keep abreast of estimated load
growth over

the

next

five years.
Underwriters—Probably Stone &
Securities Corp.. The First Boston
Corp. and
Smith, Barney & Co. Halsey, Stuart & Co. Inc., is re¬
ported to head a group to bid for
approximately $25,000,-

Webster

000 of bonds.

Pure Oil Co.

April 9 stockholders approved the possible issuance of
convertible

debenture

directors any time

issue.

This

would not

exceed

at the discretion of the

within the next 12 months.

Under¬

writer—Probably Smith, Barney & Co., New York.
ic Radio Corp. of America
Sept. 2 the directors discussed the advisability of
issuing
$100,000,000 of subordinated convertible debentures. Pro¬
ceeds

—

To

increase

financial

resources

Underwriters;— Lehman Brothers
Co., both of New York.

Reading Co.
will

be

of

and Lazard

company.

Freres &

(9/14)

received

by the company at Room 428,
Reading Terminal, Philadelphia 7, Pa., up to noon (EDT)
on
Sept. 14 for the purchase from it of $4,200,000 of
equipment trust certificates, series X, to be dated Oct.

1,

1955, and to mature serially in semi-annual instal¬
$140,000 each from April 1, 1956 to and includ¬
ing Oct. 1, 1970. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.;
ments of

Blair & Co.

Incorporated; R. W. Pressprich & Co.

Rochester Telephone Corp.

(10/4)

company advised New York P. S. Commission
that it plans to make an offering of 195,312 additional
shares of common stock to its stockholders on the basis

New York Telephone Co.
Kaiser

local

future.

July 25

>

Co., New York.
•

.

Bids

Salomon Bros. & Hutzler.
New

/

Underwriter—Probably Rey¬

York.

York Central

New

Bids will
the

capital.

of new

$300,000

share3

was reported company plans to issue and sell
later this year $9,300,000 of first
mortgage bonds. Pro¬
ceeds—To repay bank loans and for new
construction.

a

Gas & Oil Corp.
Aug. 26, company applied to the FPC for authority to
construct a 961-mile pipe line from a point near Baton
Rouge, La., to Cutler, Fla., to cost approximately $110,about $20,000,000 of 5V2% interim notes (convertible into

be

near

$50,000,000 and would be issued

Haven Clock & Watch Co.

New

four

Stuart & Co. Inc.; Kuhn, Loeb & Co. and Lehman Broth¬
,,

July 19 directors authorized an offering to stockholders
of 486,881 additional shares of capital stock on basis of
one new share for each five shares held as of
Sept. 27;
rights to expire

each

Pennsylvania Electric Co.

White,
Smith,

for

Feb. 15 it

ceeds—For

expan¬

to

tion—Expected in very

sale of

Marquette Cement Manufacturing Co.
Aug. 12 directors approved a $16,000,000 plant

share

new

on

Underwriter—Expected

stock. Pro¬
Underwriter-

common

George A. Searight, New York, will head group.

Becker

one

Pacific Power & Light Co.
(10/5)
July 5 it was reported company plans to issue and sell
30,000 shares of cumulative preferred stock
(par $100).

company

proposed issue of 600,000 shares of

Mountain States Telephone &

company

stock

common

Developments, Inc., Cleveland, Ohio
was

registration statement with

a

of

Sept. 13. Price—$35 per share.
Underwriters—Elworthy & Co.; Schwabacher & Co.;
Davis Skaggs & Co.; Pfluger &
Baerwald; and J. Barth
& Co.; all of San
Francisco, Calif.

company (name to be changed
Cosmetics, Inc.) plans registration in

from Consolidated

June

basis

on

held; rights to expire

.

it

stock

fall.

Plus, Inc.
Aug. 15 it was reported

Gulf States Utilities Co.

16

Pacific National
Bank, San Francisco, Calif.
Aug. 25 stockholders of record Aug. 23 were given the
right to subscribe for 35,770 shares of additional
capital

Lanolin

1955, if then."

May

ly); Smith, Barney & Co.; Lehman Brothers and Rite?
& Co. (jointly); Glore, Forgan & Co.

Pierce, Fenner & Beane and Reinholdt & Gardner
(jointly); White, Weld & Co.; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated. Bids—Probably
this

37

will

Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,

of

one

Oct.

4;

new

share for each four shares held

rights

termined

to

later,

expire

on

Oct.

of about

as

19. Price—To

be

de¬

j Proceeds—For

Underwriter—The First Boston
tration—Planned for

construction- program.
Corp., New York. Regis¬

Sept. 13.

•

Rye National Bank, Rye, N. Y.
Aug. 30 it was announced stockholders will vote Sept. 22
on
approving a proposal to offer 52,300 shares of com¬
mon
stock (par $2) to stockholders on a l-for-7 basis.
Price—$8 per share. Proceeds—To further the building
program and for general corporate purposes.
Under¬
writer—None.

San Diego Gas & Electric Co. (11/29)
Aug. 2 it was reported company plans to sell $18,000,000
of bonds. Proceeds—To repay bank.loans and for new

Continued

on

page

38

The Commercial and Financial Chronicle

38

..

Thursday, September 8, 1955

.

(1006)

Underwriters—To be determined by com¬

construction.

Westpan Hydrocarbon Co.

&
Co.; Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane.
Bids—Tentatively scheduled
to be received up to 11 a.m. (EDT) on Nov. 1.
Regis¬
tration—Not expected until Sept. 30.

37

Continued from page

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union
Securities Corp. and Merrill Lynch, Pierce, Fenner &

March 2 it

shares

(jointly); Lehman Brothers; The First Boston
White, Weld & Co. and Shields & Co. (jointly.
Bids-^Expected to be received up to 11:30 a.m. (EDT)

(EDT)

Sept. 22 for the purchase from it of $9,390,000 equip¬
trust certificates, series RR, to be dated Sept. 1,
1955 and to mature in 15 equal annual installments to

ment

including Sept. 1, 1970. Probable bidders:
& Co. Inc.; Salomon Bros. & Hutzler;
Peabody & Co.

Nov. 29.

and

Stuart

Co.

authorized

stockholders

30

Aug.

110,000

issuance of

June 6 the stockholders voted to approve an

Telephone

&

Telegraph

Co.

y

Oct.

dated

be

to

15, 1955.

J

•

.u

Southern Co.

United
Feb.

loans

bank

Growing Concern Over Rising Debt

has

This

issue of its "New

First National Bank of Boston, in current

rise in debt and the
credit standards in
some quarters are causing concern
among
lenders and government
officials, says The First National
Bank of Boston in the current is¬
sue of its "New England Letter."
of

Total

debt in this

net

gain of 50% in a decade,
and the trend continues upward.
Total net debt is now in excess of
sents

a

$605 billion, or the

equivalent of

$14,696 per family, as compared
with $6,830 per family in 1929.
Private debt has increased from
77% to

114% of national in¬

over

since 1945.

come

Excessive

with

rency
causes

acquired
at
nearand financed
by

precipitated by exces¬

sive borrowings to finance specu¬

lation in real estate and the stock
of

a

as

well

as.

the

extension

large volume of non-produc¬

tive loans to foreign

countries.

authorities have strongly

Some

contended

that

heavy

borrowing

to finance the current stock mar¬

ket boom is the principal danger
to

our

seem

economy.

to

facts.

At

be

the

in

But this does not
accordance

close

with

of

1954, bor¬
rowings by the member firms of
the New York Stock Exchange
were only around 1% of the total
value

of stocks listed

change

as

interest of

the

Federal

supervi¬

Reserve

on

the Ex¬

against 9.8% at the 1929




which this

to

and

borrower

the

lender, and endangering the econ¬
omy.

The crucial

tain

The

extent

be done without jeopardizing

may

income

problem is to main¬
employment at

and

sory

high levels, but
dependent upon

this in turn is
a continued rise

to

in

business

officials have warned banks
tighten terms
on
consumer

Once

debt.

in

credit, together with farm
land speculation, were important
factors leading to the depression
of 1920-21. The depression of the

market

ness.

the

to

factors

The liquidation of huge

was

limit

indebted¬

private

total

permits present enjoy¬
products that could be
purchased only after years of sav¬
ing—as is the case in most coun¬
tries of Europe today—there is a
of

increasing

bank

1930's

of

fi¬

debt

that

true

nancing

ment

of
products from automobiles to all

levels

record

billion and constitute around onethird

is

it

financing

system, were the underlying
of the crises of 1837, 1873,

inventories

aggregate $112

which

debt

gage

While

the

over-invest¬
transportation, and other
improvements, together

and 1893.

spots in the debt structure. Jn this
connection it is pertinent to con¬
sider consumer and home mort¬

facilities would
in other ways.

these

by

been

defective banking and cur¬

a

danger

vided

have to be paid for

and

tion in Western land,
internal

chief

of

financial burden

the

borrowers since the services pro¬

credit, which in many cases have
become much more liberal in the

bringing about all major business
depressions in this country, but
the troublesome type of debt has
varied with the times.
Specula¬
ment in

must look

we

in

crease

the

have

contributing

chief

for

that
the

It is apparent

credit

and

expansion

credit

of

abuse

gin, now a margin of 70% is re¬
quired.
Furthermore, total bor¬
rowings to finance the purchasing
or carrying of securities represent
about 6%
of total loans of all

elsewhere

home loan
of curbs on
have
brought

of

prospects

ing homes and durable goods on
time, it is contended, does not in
most
cases
represent a new in¬

peak. Whereas in the 1920's stocks
were bought on a very thin mar¬

country,

private and public, has increased
by about $200 billion since the
end of World War II. This repre¬

30

from

of

household

of

kinds

"Nothing

broad

a

range

equipment.

three years to
credit has vied

down,

must

billion,

$32

since

the

end

sixfold

a

of World

and constitutes around
disposable personal in¬
come as against 4% in 1945.
There is also concern over the
War

II,

12%

of

debt, which is
billion, and has
increased more than 4.2-fold since
1945.
This current debt is about

home

mortgage

about

now

of

30%
come

ago

as

$80

disposable personal in¬
against 12.3% a decade

and 22.7% in 1929.

situation is
the Ad¬
ministration. In order to curb the
The home mortgage

inflationary danger of a rising
trend in housing costs caused by
a

growing

shortage

of

ments

as

of

have

July
been

30.

would

be

of
to

high level

a

the event of

severe

a

In

economy.

business de¬

cline, debt difficulties have most
disruptive effects.
authorities

Some

the

debt

of line" with

national
reliable
debt

This

product.
means

strain

dan¬

a

since it is not "out
the growth in gross

level

gerous

that

contend

not reached

has

on

of

is

not

a

determining the

our

ratio of
debt to national product did not
give any warning of the danger
the

In that year the ratio was

ahead.
less

Down

slightly

pay¬

raised

and the maximum repayment pe¬

it

issuance

the

&

Co.

and

Shields
may

day of reckoning.
burden of Federal

family
in

bring

striven

to

lengthen out debt

and

(jointly).

It

also

is

about

the

and

half.

a

has

callable within five

or

Co.

a further shrinkage
purchasing power of thedollar, which has already shrunk
nearly 50% in the past decade

in

Joins Bache Staff

distribute

to

the

(Special to The Financial Chronicle)

CINCINNATI, Ohio —Hugh J.
Cahill, Jr. is now affiliated with
Bache
&
Co.;
Dixie
Terminal
Building.

widely in the hands of
long-term investors.
But
since
coming into office, it has been
more

With Baxter,

ity only by 10 months to
four

of

months.

Because

an

the

of

eight

prepon-

of short-term debt, the
Treasury is compelled to resort to
frequent refinancing.

perance

Since this country has
ently reached the ceiling

ation, there is
resort

grave

continued

to

levels

Bohannon

Building,

deficit

economy

eventually

may

with

Baxter,

of

the

Mid¬

Exchange.

With Livingston Williams
(Special to The Financial Chronicle)

tax¬

finan¬

now

members

Stock

west

appar¬
on

is

Williams & Co., Union Commerce

CLEVELAND, Ohio

danger that

cing in order to keep the
boom

CLEVELAND, Ohio—Benton P.

aver¬

and

years

Williams

(Special to The Financial Chronicle)

able to extend the average matur¬

at

&

increased
quarter of a cen¬

a

The present Administration

maturities

age

of it«

be placed privately.

matters, 62%
interest-bearing marketable

debt is due

debt

series

bonds, in an aggregate amount not yet
Proceeds—To pay for new construction

To aggravate

years.

contemplates the

mortgage

Weld

per

of the

company

sale later this year of a new

and

and probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive bidding. • Probable bidders; Hal¬
sey, Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,

elevenfold

has

Co., York, Pa.

announced

was

determined.

—

James J.

Tarrou has become connected with

Livingston, Williams & Co., Inc.;
Hanna Building.

than

in

about the

the net debt

national

1927

same as
was

and

1928,

and

in 1924. In 1929,
1.83

Ballyhoo via Mr. Reuthei
"On this Labor
stands

The

at

new

fident, be

times gross

the

Day the trade union movement

threshold of

united

labor

a

challenging new
will, I feel

movement

more

in

>'fi

■f

*

"The Administration's domes¬
tic program has been one of not
too much social security, not too
much housing,
not too much
health, not too much education

and not too

much welfare. For

against

1.68

This does not

nec¬

the

favored

special interests it

that the debt situa¬
is approaching the
dangerous position of 1929 be¬
cause
the debt pattern today is

has

been

series

product,

essarily
tion

as

mean

today

different from that

To hold that

of the earlier

eliminated

is

depressions
to

imply

can

that

be

any

spending will be
increased Federal

slack in private
taken

up

by

expenditures.

While this can be

era.
con¬

active in organizing unorganized
helping elect the
best
qualified candidates for
public office and in seeking to
bring about passage of liberal,
forward-looking legislation i n
every field.

workers,

In

economy.

instance,

for

1929,

building period.

materials, credit terms were tight¬
ened

amount

inadequate

diminishing

income

times in 1954.

considered unhealthy by

progressively
and the re¬

burdensome,

more

sustain

than

activity

debt service.

to

become

home mortgages. By low¬
ering down payments and extend¬
ing maturities for short- as well
as long-term personal debts,
cer¬
tain groups of consumers are be¬
ing placed in a vulnerable posi¬
tion. Consumer credit now totals
on

increase

29

debt
are
aggravated as an
proportion of income

be diverted

Charges

maining

more

York County Gas

average

tury.

compe¬

income turn downward,

difficulties

pay" in consumer
"nothing down, 30 years to

with

pay"

Oct. 18 at

June

postpones
debt

by

Mass.

done, shifting the burden of main¬
taining peak levels of business
activity to the government merely
The

determined

Co. (jointly); Blair & Co. Incor¬
(jointly); The First
Bids—Tentatively scheduled to be received
company's office, 441 Stuart St., Boston 10r

Corp.

possible that issue

protests from some quarters. Buy¬

commercial banks.

Continuing, the Bank says:

and

consumer

and home mortgage debt.

The sharp

lowering

on

Bbane.:' *

reduced

been

stiffening

terms

England Letter," finds cause of heavy private borrowing is not
due to stock exchange operations, and chief danger may be in
consumer

Underwriter—To

to 25.

years

be

White, Weld &

Boston

125,000

riod

Notes

and

by competitive bidding. Probable bidders:

Merrill, Lynch, Pierce, Fenner &

Underwriter—To

porated and Baxter, Williams & Co.

bank loans and if conditions

security."

SEC

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Salomon
Bros. & Hutzler and Stroud & Co., Inc. (jointly); Coffin
& Burr, Inc.; Kidder, Peabody & Co., Blyth & Co., Inc.

Corp.

form of debt

the

struction.

shares of cumulative preferred stock
(par $100). Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Stone & Web&tec„ Securities Corp.;

(jointly); Union Securities Corp. and Equitable
(jointly); Lehman Brothers; Morgan

issue

titive

C.

some

sell

and

Witter & Co.
Securi¬
Stanley

& Co. and Dean

Co., Inc., Bear, Stearns

new

Virginia Electric & Power Co. (12/6)
Aug. 2 it was announced that company plans to issue

competitive bidding. Probable bidders: The First
Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb,
Rhoades & Co. and Wertheim & Co. (jointly); Blyth &

plans to

proposes

company

first

by

ties Corp.

finance cost of

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.; White, Weld & Co. and Equitable
Securities Corp. (jointly); Harriman Ripley & Co. Inc.
and Goldman Sachs & Co. (jointly).

Underwriter—To be determined

,

Gas

N.

be determined

company on

subsidiary companies.

24,

warrant

Oct. 31. Proceeds—To repay
and for investment in additional stock of

named by

be

now

$20,000,000 of securities, probably
Bonds are expected to be

stock.

County Electric Co. (10/18)
to file a registration statement
early in September with respect to sale
of $8,500,000 first mortgage bonds, series D, due 1985.
Proceeds—For payment of bank loans and new con¬

reported company plans to sell addi¬

was

,.

,

announced company plans to offer first
stockholders 1,507,303 additional shares of
common stock (par $5) on a basis of one new share for
each 12 shares held about Nov. 1; rights to expire on
Nov. 22.
Warrants to be mailed on Nov. 2.
Price—To

and

Worcester

McGowen, President, stated that com¬
might be doing some debt financing. On Aug. 26
it was announced that "such additional funds as may be

common

of notes

Co., Ltd.

company

Hearings on new pipe line scheduled
before FPC on Sent. 19. Underwriter—East¬
Dillon & Co., New York. .Offering — Expected in

The

pany

Aug. 29 it was
to

it

15

needed will be obtained by

(11/1)

reported

was

October.

construction, which is estimated at about $17,500,000
Underwriter—Dillon, Read & Co. Inc., New York.

23.

about Sept.

it

begin

man,

with

tional first mortgage bonds later to

program.

units

to

publicly offered. Proceeds—For working capi¬
Office—Buffalo, N. Y.

March

debentures
Proceeds—To be applied to

Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Morgan Stanley & Co. Bids—Expected to
be received on Oct. 17. Registration—Planned for on .or
construtcion

Westcoast Transmission

placed privately.

authorized

Texas Gas Transmission Co.

authorized

Aug. 22 it was announced the directors have
the issuance and sale of $30,000,000 40-year

(52.8%).

their holdings has

to be

are

tal.

Bell

sell

and sell publicly about

shares (to be convertible into common)

of which 300,000

to

April 25

shares of first preferred stock (par $10),

issue of 500,000

stock

Dec.

•

Halsey,
Kidder,

Sterling Precision Instrument Corp.

preferred stock (par
drilling program,
etc. Underwriter—Previous common stock financing was
handled bv Hunter Securities Corp., New York, who
it is stated, will not underwrite the new preferred issue.
Proceeds—For exploration and

Southern

may

in

cumulative convertible

of

shares

$10).

Corp. has agreed

The time in which
been extended by
21, 1955. Underwriter—Union Securities
Corp., New York, underwrote recent sale of Sinclair's
holdings of Colorado Interstate Gas Co. White, Weld &
Co., New York, may be included among the bidders.

on

Corp.;

South Texas Oil & Gas

Westpan

Sinclair

Beane

on

of

SEC

ic Southern Pacific Co. (9/22)
Bids will be received by the company up to noon

announced Sinclair Oil

was

with the SEC to divest itself of its investment of 384,380

Waiter P. Reuther

of proposed
gigantic giveaways—a $64,000,000,000 question of rewarding the rich with the
resources of the
people."—Walter Reuther.
A

a

challenging

new

era? We

can

only hope that
in this coun¬
which can not

the rank and file of the wage earners

try will have minds of their
be bamboozled

own

by such tommyrot

as

this.

j

Volume

Number 5462

182

...

The Commercial and Financial Chronicle

(1007)
form

it

as

relates "^d

the

several

It is evident that the

fixed

pon

for

the

sentiment.

This

apparent from

the fact that latest reports

total

of

orders

There

a

appears

months
is

several

And of all sectors it

now.

casting its glow in the railroad
where

area

Baltimore

&

listen

even

railroad

Ohio's

to take

big debt consolidation program is
underway.

the

B.

to

salestalk

a

offering,
than

more

O.

&

on

a

ready
good look at
are

now
a

the

in

a

the

first

issue

rail

new

part

evidence

the

of

companies,

of

in

major

including

interest
years

Recent Issues Holding

on

The several top-grade offerings

insurance
several

brought

though

so-called "Big Five.'* Entail¬
ing the refinancing of an overall

total of $280 millions, bankers are

ing

this undertak¬

on

selves.

Co.'s
out

Many insurance companies, it is

reported, have agreed to the
change
new

in

terms

to
as

dicate

that

the

the

a

the

points

Motors

Acceptance

bonds.

3.75%, which commanded

50%

in¬

mium of

the

of

slipped

figure

is

not

9814

uni¬

offers

could

fit

handily

folios

of

many

in

return

in

as

into

which

the

port¬

institutional

in¬

keeping

with

their

ideas.

debentures

syndicates

L. W.

light

more

awaiting

up

the

on

a

money

At
sue

rate the next large

any

on

is¬

is Tennessee

calendar

the

Transmission
of

000

bonds

first

$50,000,line

pipe

maturity.

21-year

a

accompanied

issue,

pre¬

Co.'s

mortgage

with

by

an

asked.

Francisco

rule

to

&

of

L. W. Hoefinghoff &

Union Central
of

the

1955.

dividend

No

WM.

b
w

*/lLUEb\
S
"cOHPOHlllll%

was

taken

record

An

ALLEN B. DO MONT

LABORATORIES, INC.

share

per

record

day has declared

1955,
the

at

JOHN

poration,
the

at

of

COMMON

1955,

the

board

Michigan

a

per

DIVIDEND

of

business

of

directors of

corporation,

share

on

the

payable September 26,

close

No.

on

CONTINENTAL

1955 to

September

Products

Allied

declared

Common

quarterly

a

shares

of

the Cor¬

shareholders

14,

of

share

payable October 1, 1955

to

Directors
per

the close of business

at

September

WAGNER BAKING

15, 1955.

CORPORATION

Paul Raibourn
Treasurer

The

Board

per

share

-

holders of record

record

1955.

ness

BAKING

has declared

share

on

this

at

the close of busi¬

,

of 5 cents
dends

1955,

share

F. Hall,

Vice President

and Secretary

day

The

October

1,

stockholders

of

September
V.

the

CONTROLS COMPANY
Greentburg, Pa. K

A regular

New York,

September 7, 1955.

day declared
share

the

on

per

at

year

of

one

a

stock dividend of

shares of Common Stock held, payable October 49, 1955, to
Common stockholders of record at the close of business September

30, 1955. Payment in cash will be made for fractional shares

clewing market price of the Common Stock




record

date

1955

A

CONTROLS

to

regular

quarterly

payable September
of record

at

of

stock¬

dividend
on

The

^

NOTICE

following dividends
been declared
by the

have

9, 1955.

STOCK

of

37^c

The transfer books will

stockholders!
September !

not

be closed,

WALTER H. STEFFLER

Secretary fif» Treasurer

SHOE

or

last

the

the
re-

sales

any

ord

stock
not

the

are
rec

payable

October

1955 to stockholders of

1,

books

be closed.

178™

rec¬

OF PITTSBURGH, PA.

A

quarterly dividend

$0.20

1,

Common Stock

September 15, 1955.
Common Stock

A

per

share

on

of

the Com¬

Stock, payable October
1955 to stockholders of

record

at

the close of

busi¬

September 15, 1955.

Transfer books will not be

closed.

Checks

will

be

per

135th DIVIDEND DECLARATION
quarterly dividend
share payable

on

of 60^
October

Wm. J. Williams

Vice-President & Secretary

The Board of Directors of this

com¬

today declared a cash divi¬
dend of Fifty Cents (50d) a shara
pany

L 1955 to stockholders of
ord

at

the

close

of

September 15, 1955,
clared by

rec¬

business
was

de¬

the Board of Directors.

mailed.

WILLIAM FISHER

COMPANY

CONSECUTIVE DIVIDEND

ord at the close of business
on

ness on

transfer

FIRE INSURANCE

$4.25 Cumulative Preferred

Stock,

mon

date.

on

UNION

NATIONAL

St. Louis

ANDREW W. JOHNSON

on

the

capital stock. This cash divi¬

dend will be paid

September 30,

1955 to stockholders of record at
the

close

of

business

September

12, 1955.

Vice-President and Treasurer

treasurer

September 7, 1955

\

zcs

Treasurer

September 1, 1955
September 6, 1955

\

per

the Common Stock

20, 1955 to

the close of business

COMPANY

Board of Directors:

at

business

COMMON

share has been declared

BARNES, Secretary

close

INTERNATIONAL

on

on

corded bid price if there
not

will

MR.

August 23, 1955

of $1.0625 per share on the

share of Commorr'Stock for each

The

the close of business

Preferred Stock

ten

the basis of the

20,

(§) September

on

A regular
quarterly dividend

The Board of Directors has declared this day
rate

Preferred

payable Septem¬

holders of record

of New York

1955.

Stock Dividend

the

Cumulative

the

Guaranty Trust Company

the close of

per

declared

Per cent

ber

quarter ending

September 30, 1955, payable

STUART K.

XA

Stock,

Capital Stock of this

Company for the

at

5

$0.34375
been

Convertible

quarterly divi¬

a

Eighty (80) Cents

of
has

j

quarterly divi¬

the $25.00 par value

on

9, 1955.

DIVIDEND

1955, for the third quarter of the

dend

share

The Board of Directors has this

September 15, 1955.

Stock, payable

September 16, 1955.

per cent at

Secretary.

1955, of fifty cents

year

outstanding Common

standing Common Stock effective with the dividend payable Oc'

ten

16, 1955.

STEVENS,

[CANADMPk

Company has increased the regular quarterly dividend from
cents ($.45) to fifty cents ($.50) per share on the out1,

divi¬

regular quarterly

forty-five
tober

the

on

Both

a

quarterly divi'

a

October 1, 1955, to holders of record of such stock
business

share

per

$1.75

dividend

R0BERTS1IAW- FULTON

of record

©

Common Dividend No. 42

on

of

7% Pre¬
a

Stock.

payable

to
J.

dend of

the outstanding--$5.50 Dividend

dividend, for the third quarter of the
per

regular

the

on

PREFERRED STOCK

September 23, 1955.

COMPANY

The Board of Directors has declared this day a

($.50)

Directors

ferred Stock, also

Common

' r "t

of
the

declared

quarterly dividend

In All Phases of Television

Cumulative Preferred Stock, payable October 1, 1955, to stock'
holders of record at the close of business September 16, 1955.
"

GREENBURGH,

Pre¬

ferred Stockholders of record

heen

has

Preferred Dividend No. 67

$1,371/2

business

shares of 5% Cumulative
Convertible Preferred Stock,

October 17, 1955, to stockholders

of

of

Treasurer.

the

twenty-five cents ($.25)
declared upon the
stock
of
Burroughs
Corporation,
payable October 20, 1955 to share¬
a

August 31, 1955

dend

G.

DIVIDEND

70

Detroit, Mich.

of

stockholders

to

close

223rd CONSECUTIVE CASH

Sheldon

The Board

(50tf)

of $.25 per share on its outstand¬

Burroughs

CORPORATION

69d

fifty

dividend

a

A dividend of

August 31,

of

ing

si

.

V**

Corporation,

Sep¬

declared, payable

was

The Board of Directors of Allen
B. Du Mont Laboratories, Inc.

NOTICE

Detroit 23, Michigan

On

business

ALLIED PRODUCTS

6.

dividend

of

September 15, 1955.

Secretary-Treasurer

PETERS,

to stockholders of

dividend

extra

record
B.

(50tf)

fifty

declared, payable

was

close

September 27,
of

m

$

the

at

of

tember 15, 1955.

oil Mom
on

share

per

September 27, 1955,

DIVIDEND NOTICES

Stock.

Common

B

quarterly dividend

cents

Company

action

Broadway, New York 6, N. Y.
July 20, 1955

A

Exchanges.

(Incorporated)

DIVIDEND

61

Midwest

and

dividend

A

MOSKOWITZj

MIAMI COPPER COMPANY

has

Racine, Wis., September 6, 1955
of $1.75 per share upon the out¬
standing Preferred Stock of this Company has
been declared payable October 1, 1955, to holders
of record at the close of business September 12,

DIVIDEND NOTICES

j

j

Vice Pres. 6* Treasurer'

Co.. Inc.,

1955

J. I. Case

September 13,1955.

on

Brown

DIVIDEND NOTICES

of-

per

record!

stockholders of

to

close of business

CHARLES C.

Building, members

Cincinnati

San

million

$19

25c

Checks win be mailed.

Hoefinghoff Adds

August 25,

and

Louis

St.

Hy.'s

bid

98

of

outstanding Common)

McGill has been aded to the staff

point at the best, have

a

back

dividend

the

on

September30, 1955.

CINCINNATI, Ohio—H.

this

situation.

This
a

operations

bidding

Directors has declared

o.

quarterly

share

cents

Transmission

Negotiated offerings seem to be
vogue
at the moment with

little

a

Stock of the Company, payable on

the

competitive

Sep'ember 1, 1955
The Hoard

having indicated they

tentatively

are

Gas

LOEW'S INCORPORATED'

at the

week, though the date doubtless
will depend
upon
conditions as
that date approaches.
Tennessee

Columbia

will be seeking the issue.

Stock

The

week

System is scheduled to open
for $40 million
of 25-year

debentures with at least two
large

the

1970

maturity

a

following

DIVIDEND NOTICES

for

(Special to The Financial Chronicle)

vestors if they view the indicated

Gas

side.

bid

sug¬

on

Corp.'s long 3%s priced to yield

estimates

mature

issue

price

maintaining

deter¬

roughly

the

basis, at

are

General

issues have been spoken for

although

3%s, brought

have

whole,

a

Telegraph

additional

buy

Taken

which

of

3.50%

a

102.547

&

premium of around 1 %

being offered, and

instances

some

mined

new

under

bonds are

Telephone

$67,000,000

on

of

ex¬

to

consensus

bids

level.

presumably backed

Pacific

ket observers.

the

3.75%

a

Slated

naturally

and

finding an exceptionally
good reception, according to mar¬

guessing as to the
yield to be offered in¬

with

vestors

gesting

in

out

recent
weeks,
feeling the ef¬
fects ! of
the
latest
tightening
phase in the money market, are
giving good accounts of them¬

of

the

really at work

considerable

Gas

expected to go to market late next

Here, it develops, the high spot

is

The

urally attracting no end of atten¬
tion ip banking circles. There is

issues, especially the

longest maturity.
;

Corp.

$100 million of debentures
scheduled by this company, placed
in registration last week is nat¬

probable

feeling, have been
pleasantly surprised by the re¬
sponse.
They are finding that
people, who a year ago, would not

Financial

C.I.T.

addi¬

common stock is slated
the middle of next week.

The

"lukewarm"

glint of silver in the dour clouds
hovering over the
for

off

excess

Some dealers, who took hold of
new
bonds with
a
sort
of

to be more than

market

that

the

that have been

investment

in

put the
for

received

particular maturity
$105 million.

„

a

investor

on

is

tional

million

$120

effect

offering of 400,000 shares of

4)4 % cou¬

slated to mature in 1995 has had

tremendous

fering, however, is reported still
available.

maturities involved.

39

i

The Commercial and Financial Chronicle
40

..

Thursday, September 8, 1955

.

(1008)

Washington

i

fall
with
more
than
geometric rapidity if there is
any decline in business volume.
ness,

At

•

•

taxes, especially on busi¬

come

BUSINESS BUZZ

the

down, the

Behind-the-Scene

And You

SsS~

Nation'* Capital

from the

is

likely

make

more

guarantees,

liability not

more

turns

called
its

on

the
ever

the government

be

to

good

loan

time,

same

slides, if it

business

to

upon

multifarious
a
contingent

carried in the

even

budget.

WASHINGTON, D. C.—Flood

disaster

is

moment

the

at

Insurance

»

in the
has tjhe
foggiest notion of how to work
but

nothing
official

it

gleam

a

of

thing

the

states

after

Hartford

flood

the

of

his

said

He

that

'

the losses from flood dam-

sure

health

"reinsurance,"

other

hit.

Insurance
au¬
revealed that nobody

the damage

President

the

minute

before

then

all the

talked,

Norman

•

of

trator

working out

committee
No

scheme.
hand
if

work

to

be

can

one

offered

to

the

will

found,

be

There

circus

In

the

more

got

1956.

and

than

less

he

was

a

than

more

wanted in housing legislation in

session.

optimistic note

was one

prediction that budget
receipts would aggregate $62.1
billion. This sum is $2.1 billion

the

President

in

place,

both

than

place, the good little Democrats

last

estimated

was

and $1.9 billion more

January,

seoond

1.955.

the

1955

want to concoct

tion

in

1956 hous¬

some

legislaton

ing

voters

the

In

losses

on

project died
as

age petered

of

Corp.,

so

the

is

remarkably

was

the

earlier

indicated

Small

as

Business

rapidly

the

the

long

a

civilian

time

of government

are

on

rise.

budget

greviously under¬

Januuray

the

1955

cost,

likely

that

is

also

fiscal

increases

for

compared with '55,

as

this
are

catch-all

po¬

interest

and

the

on

and

debt, for "com¬

manpower,"

services

for

for

and

benefits,
health, and

looks
*

quite

1955, of

ministration

said

they

but the Ad¬

course,

this

earlier

would

be

modity
age

Credit

drop

centage

Corp.

of three

points

An

A

significant factor in
mid-year budget revision

The

that

the

and

rein¬

services

of

cost

farm

was

four

or

in

aver¬

the

the

flow

of

commodities

per¬

surplus farm

into
the

when

government

farm

general
as

it is.

Finally, Agriculture Secretary
the

Benson

has

was

success

in

benefits

forecast

of-

rencies,

so

Congress

had

pretty
away

farm

for

foreign

much

cur¬

success

boosted

from

that

$700

million to $1.5 billion, the sums
which could be used for this

Canadian Bonds
Government

—

Provincial

—

Municipal

purpose.

and

Corporation

—

•

This

on

any

back
to
the long-run
of $34
billion, versus

pared
target

ly spent, in the mid-year revi¬
sion of the budget. (Curiously
the Treasury

"Foreign

Development

hardly beguri&to shdw

preliminary fiscal

statement placed De¬

year-end
fense

Department military
spending at $35,847 million, the
"final"

daily

Treasury state¬

ment

covering fiscal 1955 placed
expenditures at $35,729
milion, and the budget now says
these

"actual"

spending

was

$35.5

billion.)
Tax Cut Move Gains

Despite this outlook, which is

Trade

Act"
up

has

in the

Tel.:

DIgby 4-3870

in

Association of Canada

Tobon'to

•

Montreal




Toronto

Ottawa

Business Informa¬
Cleveland Public
Library, 325 Superior Avenue,
Cleveland 14, Ohio (paper), 25c.
liography

tion

—

Bureau,

Interpretation of Financial State¬
ments—1955 Revised Edition—

Graham and Charles

McGolrick—Harper & Brothers,

vised

deficit

estimate

of

$1.7

billion for the current year, the

of sentiment for tax cuts

in

1956

is rising.

This
would

at

come

business
not

is

at

when

a

in

receded

when
than

the

80%

personal
come

tax

time

a

peak
the

are

when

$2.25.

Tax Exempt Income for the indi¬
investor

—

Tripp

& Co.,

Inc., 40 Wall Street, New York 5,
N. Y.

(paper).

guarantees

rising,

dependent

is

and
more

upon

corporation

taxes for its

Street, New York

(if it has

government
and

cuts

33rd

meantime),

government

subsidies

and

East

16, N. Y. (cloth)

vidual

that

means

49

receipts.

the
in¬

In-

„

New

CLASS

Views

on

STOCK

on request

Investment

Carl Marks
FOREIGN

•

(Common)

LERNER & CO.

Company, Ltd

Stock

B

Copies

10

Members:

The

Guaranteed Annual Wage—A bib¬

CALIFORNIA

TWX: NY 1-1467

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

Exchange

Winmpec

I

:T

of

Press,

RIVERSIDE CEMENT CO.

Affiliated with:
Barns Bros. &
Denton, Ltd.
Burns Bros. &
Members:The Investment Dealers

Catalogue

Benjamin

sanguine for the possibility
going any lower than the re¬

Canadian Exchange

Street, N. Y. 5

—

University
Princeton (paper).
Princeton

of

Canadian Securities

37 Wall

1955

Fall

Books,

not

Burns Bros. & Denton, Inc.
Dealers

Inc., 710 Peachtree

W.

of the Eisenhower Admin¬

External and Internal
Stock Orders Executed

N.

review, that Defense Depart¬
ment military functions can be

good

giving

commodities

ATLANTA, Ga.—Coy R. Lander
has become affiliated with Pruett

Street,

support

level, however, is insufficient to
stem

(Special to The Financial Chronicle)

istration, in the mid-year budget

surge

Underestimate Farm Costs

short

factor in

a

price level is sagging

1951

year

limiting the outlays of the Com¬

hands

welfare,

education.

cost

year

ible supports were not operative
in

category of "gen¬
eral government" expenses, for

Administration

becoming

cor¬

the

$35.5 billion reported as actual¬
the

reason

current

ual

headlines

possible.

this

officially forecast for the resid¬

found that

of

consequence

what

that

being underestimated. The flex¬

year,

the number of appeals for loans

had

For

the

for

veterans'

damage

miracle in the way of get¬

a

ting this huge cost item off the

it

merce

a

of

f.

something

work

to

Secu¬

in

Building.

and Company,

Lower

offices

Another factor is the assump¬

tion

the

and

late if reincarnated Reconstruc¬

as

going

was

Investment

from

Military Spending

Congres¬

Administra¬
tion's
timid
approach toward
less costly farm price supports
that

.Predict

kid itself into,

sional leaders, to

begun.

at¬

private

with

conversations

estimated

litical appeal of a new program
also died out. Furthermore, the
Finance

its

in

even

in

including

Estimated

of flood dam¬

out and

has

It

tempted,'

fig¬

trend which

one

up

commodities have been

of

of losses has hardly

Treasury's back.
the

hand,

dol¬

half-billion

a

in

Administration.

Inc.

Burnett

Joins Pruett Staff

While deals for some¬
near

made, the actual sale and taking

issued ill the official revi¬

the

course,

lars

the farm pro¬

there is a natural mote
the eye of the Eisenhower

point

expenses

natural death

a

news

due

where

American

rities,

gram,

ing

insurance of losses from

In

Inc.,

WORTH, Texas.—Archibald
now conducting his in¬

Burk

budget.

ficially at nearly $1 billion less
than for the current fiscal year.
With respect to

of

horse town!"

respondent, have been suggest¬

overflowing of the Missouri and
Rivers, Harry Truman

tion

revenues,

year

other

the

observers,

Kansas

of ennui

one

sion

1951

damage.

don't!

ures

1951, after the floods in
Kansas and Missouri from the

this

current

On

In

flood

may

collections.

to this

housing legislation.

talked

possible that the
have underesti¬

even

mated

anything like insurance of
from lood damage prob¬

Recalls

is

especially personal income tax

ably would be tacked

putting my money in ESCROW?—Oh, no you
I want it kept here in the city—not out in some

thinking

Treasury

year.

So

fiscal

in

collected

was

It

the

please

to

Presidential elec¬

the

"You're

the actual official document.

in
It

'

first

&
Jaquith,
Building.

vestment business under the name

of

couple

a

they were quoted as

balanced.

be another annual housing leg¬
islation

Kirchner

FT.

that the current year's
budget, barring unforeseen de¬
velopments, can and should be

There is certain to

legislation.

Kuhlmaii

E. Crow is

saying

require

will

it

revision

budget

Congress.

Undoubtedy

Marion B.

M.

Now American Inv. Sees.

the

Budget
the official mid-summer

weeks ago

a

A PLAN,

is,

of

the Director of
briefed the press

and

about

off¬

how

matter

President

a

out

and

Denver Club

Secretary

the

When

Treasury

a

appointed

has

Administration,
a

Clennon

v

Robert

—

have become associated with Car¬

century.

a

Colo.

Is Pessimistic

plan.
P. Mason, Adminis¬
the Federal Housing

to and start

DENVER,

roll,

he

bureaucrats heave

medium

and

(Special to The Financial Chronicle)

flooded
never
again

Budget Outlook

big, little,

cuff

his

in

flooded

be

views.)

own

Two With Carroll, Kirchner

and

might

that

areas

gets a sudden inspiration that
something should be done, no
matter if he just read it from

the "Chronicle's

however,

foot of rain which

streams

re¬

and may or may not coincide with

due to a fluke,

was

a

swamped

States

United

the

of

nearly

to

the

On the other hand, when

disaster,

1955

the

things.

pretation from the nation's Capital

having properties that are vul¬
nerable to floods.
In the case
of

and

among

flect the "behind the scene" inter¬

execept persons

flood insurance

facilities

(This column is intended to

in taking out

casual.

*

schools,
for
the
building
of
highways, and for providing

rivers

There was no preliminary
ground-work for the President's
suggestion.
It was strictly
age.

.

farmers

to

subnormal incomes, aid to

health

thorities

of
outside

be

to

budget, for aid

with

it

much is interested

floods

supposedly

better

regularly

thing should be done to prevent
in the future and to in-

'

the

usually happens
low-lying
properties are

as

then,

and

some¬

numerous

they do every now

-overflow

from

damage

rains.

Diane's

them

of the Mis¬

flood

1951

souri. Furthermore, when

in
inspection

the Governors

met

he

after

the

by

President Eisenhower's remarks

>

it

White House proposals, many

1951

debacle.
More
this year than

hit

were

Congress
has
expensive

Furthermore,
before

how¬

difference,

a

1955

the

and

was

as

as

between the flood of

ever,

how much it will cost.

or

Genesis

is

There

Nobody

eye.

well

as

to
other loans.

RFC

the

of

carnation

•

&

r.o.jnr

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