S-(Scc. Ill) Statesman, Salem, Ore.,' Frt. Dec. 21. 56j Portland Produce
Business News ...
fiabson, Reports:
Depreciation Figures
Vital in Annual Report
...... - - i
' Copyright 19SS Publishers financial Bureau, Incorporated
, BABSON PARK, Mass., Dec 20-During my tummer vacatloa at
C unices ter, Mas.. I read about forty 193 annual report! ot corpora
tion listed oa the New York Exchange. I wai especially pleased with
aome of these because they had been made very Interesting, illustrated
by attractive pictures and charts. I assume that these Utter have
been prepared by professional agencies ana public
1 relations men. I am very pleased to see so many
of them with the data of the year in large type in tnt
upper rlsht-hand corner on the outside cover.
RELATION OP PRICE TO NET EARNINGS
The common "quickie rule" for brokers to use
in looking at annual reports is to study the relation
of price to net earnings. When the price is 30 to 40
times earnings, it is usually a sign that the price
is too high; while If the price is only I times net
earnings after fair depreciation and taxes, it is
looked upon as attractive. I hate to keep within the
aiar w. range of 10-to-M times earnings.
MIXED-HP FIGURES
Some of the reports were unconsciously misleading. For instance,
some would include the sale of land or securities with the gross
Income, which, of course, should not have been done. Furthermore,
depreciation of write-off" has been handled differently by different
companies. The depreciation figure is very important to study for two
reasons: First, heavy depreciation can reauce the net earnings to less
than they really are; while small depreciation can indicate the reverse
if not honestly treated. Second, under ordinary circumstances the
government allows an average of about S per cent on depreciation,
but en special military work 25 per cent is sometime allowed.
1 Oil companies have the largest writeoffs. My two favorites, are
Continental Oil and Phillips Petroleum. Standard Oil of California
Also rates well, with ever 10 per cent write-offs each year. The
chemical companies also have a good record for writeoffs, leading
with Dow Chemical at IS per cent and Monsanto Chemical at Dearly
f per cent. Union Carbide also has a t per cent write-off.
STEEL MANUFACTURERS AND MINING COMPANIES
Upon studying the annual reports of the six leading steel com
anies, it was evident that U. S. Steel led with a write-off of 7 per cent.
although National Sted followed closely with IS per cent The lowest
in my list as InlnM Steel, which showed only JJ per cent. On a
replacement basis, probrbly U. S. Steel would amount to 1200 to $300
a share while today K 1 selling at 72. . Bethlehem Steel, its nearest
competitor, writes off less than I per cent.
Other reports were on aluminum and nickel companies, together
witB the three leading copper companies, namely. Anaconda Company,
Kennecott Copper, and Phelps Dodge. The aluminum companies
encouraged by special government concessions lead, with writeoffs
ot ever 7 per cent.- Anaconda, however, leads the copper companies
iih write-off of about 4 per cent. International Nickel has a good
write-off, but reader who purchase this stock should have the cer
tificates stand in the name of some U. S. bank or stock exchange firm
and not in their own names. Otherwise, such stock is quite embar
rassing in the case of the death of an individual.
Miscellaneous companies the write-offs range from about IS per
cent for International Business Machines down to less than 1 per cent
for several of the companies. One of my favorite stocks, westing-
hou?e Electric, has a writeoff of 3 per cent The smallest writeofls
are ia retail trade companies, due largely to the fact that they lease
most of their stores. F. W. Woolworth has the largest writeoff of
t per cent, while both Sears, Roebuck and Montgomery Ward write
ff only a fraction of 1 per cent Caterpillar Tractor. Corning Glass.
and Eastman Kodak have good writeoffs ot from 3tt per cent to Vt
per cent General Electric writes off less than 3 per cent and Gen
cral Motors less than lVt per cent. General Foods writes off less than
1 per cent. In giving these figures I do not mean that these are
the best stocks to buy. as there are many imDortant thinu to consider
besides annual reports figures. I do, however, urge my friends to
PORTLAND Ul .-Butterfat
Tentative, subject to Immediate
change Premium . quality, deliv
ered in Portland, C4o7 cents per
lb; first quality, ei-64; second
quality, 56-59. .
Butter Wholesale, f.o.b. bulk
cubes to wholesalers Grade AA,
93 score, 63; A grade, 02 score,
62; B grade, 90 score, 60H; C
grade, W score, StVi. '
! Cheese To wholesalers Oregon
singles. 41-41 lb; Oregon Mb loaf,
43'4-53H.
Eggs To retailers Grade AA.
large, 51-53; A large, 4M9; AA
medium. 4S-40; A medium. 45-47;
A small, 37-38. Cartons, 11 cents
additional. '
Eggs To wholesalers A large,
46-47 ; A medium, 43-45 V; . A
small, 35-36K.
Live poultry No. 1 quality,
f.o.b. Portland Fryers, 2H-4 lbs,
15-16; light hens, 10-11 at farm;
heavy hens, 13-14 at farm; old
roosters, 7-9.
Turkeys To producers L i v
New York Closing Stocks
. . port by
' Merrill Lynch. Pierce fnner and Beane
M
Admiral Core .
A I Cham by
A Iliad Sirs
A I in Cham
Alcoa
Alulmtnum M4
Am Airllnaa .
Am Can
'ford Motor
. IS'4 o
. M Can Dynamics
, 4.1 . Can Elae
, M", Can Foods
ti'.'t Can Motors ..
JTO'i oen lira
Phllco Corp
rnu Morria
M'l Ph:l Patrol .
k Plllsbury
44 Pro & Gam
Am Cyan
Am Motor
Am mi rdr
Am T T
Am Tobacco
Am Vlacoee
Anae Copper
Armco .......
Armour ,
Atchaaon Top .
Avco
.. Jtt'l Ceo Pac Ply
40s Gillette
1a Glldden
uwiricn
3 Pu Ed P L ,
. 53i,i Pure Oil
- a
. 43 ., i
n v. Radio Corp
72 Hayonler In.
Stock Market
Dip Sharpens
. I's
. v.,
. 51
i 40'i
. H.
. turnover increased a bit.
NEW YORK. Dec. 20 W -Thel
stock market's pre -Christmas de
cline deepened slightly today as;
" ...7 i- i ' it,Z Raoub Sll
ZiiK ciiii "VnZZZZZ-Uk "yaw Mat -
. H'i Grl l!o Ry .. 44', SfL".? -
sv! C.rt Wait Su( 20 Blc-hfleM O
Z tt. Greyhound 14", yl Dutch ...
ss Cull Oil ... ... U0t, s
17 H Safeway Sir
Bendlx Avla
Beat Foods
Bath 811
Boeinf Air ....
Borden .
orf Warn
Bucyrui
Homntake M
w. St Joe Lead
St L aV sr Ry
St Rests Paper . .,
lot Harveat SS'a Stnenley Ind
. ira'a Scott Paper
TVj Int Nickel
T4 a i pMr
..1SS
SJ'a
S.T, Johnt-Mam
4.1 Jonea Si M Stl ..
'"J4 K
' Kilter Alum
.... Kennecott ..
J'k Kern Land
..IOS Seaia Roe
She'l Oil
47
Sln.-latr Oil
weight fryers. 27-2; young turkey I Ccruin.d r 10;,
hens, eviscerated. 35-30; young chi m & st p ts.
toms to 24 lbs, 34-35; 1-2 premium cm Hy
tnm k i Chi n Is My
Chryaier
nauoits Average w growers
Live white, 3-44 lbs. 21-24; col
ored pelts 4 cents less; old does,
10-12. few higher. Fresh killed
fryers to retailers, 56-51; cut up,
60-63. ' .
Wool-Nominal, clean base, Vonuiner
. I UM. ,. L.I J. f A AO. li I w-' -
oioou, i.uu-w; i uhjuu, i.w-w, ti
blood. 1.12-11; fine. 1.17-23.
Cavalry -dressed Meats, f.e.k.
Pertland:
Beef-Young cows, utility. 20-22 1 0....
lb; canners and cutters, i-is. Doug Air
B'irra Adding
C
Calif Pack
Campb Sniio ...
Urn J I '.JZZZZ 13S L-bby McN
Catarp Trae SS1 t-J
Calaneaa 15', LOF Olmn L
Loew'i Inc ..
Lorlllard
XS,
SS1! Marsanov ...
Wik Mrh Field
Cities Serv Merck Co
Climax Moly 5 Mont Chem .
Cluett Pea 40", Mont Ward
Cwca Cola Motorola
Colgate 41 'i N
Com Credit ... .; 41', f),t Blacuit ..
Coma Eduon 3S', Wat Caah Ra(
Cona EdlMn 44', n.ti Dairy .
Natl Dlatlll ...
Natl CvDium
Cont Oil 1274 N,ti Le,a
Crana Co. 33 N,t supply
j-rown i,rii , central
luruaa wr
- w Soconr-Mnb
Sou Cil Edi
... 4 Sou Pac Ry
. is Sou Ry
, 43 Snerrv Rand
Sid Brand,
it,c Bio ini lai
fr.a ftfrf nil t
Std Oil NJ
mil Biuav-nc,
9jf Sunrav Otl
isi! Sumhlne M
" Swift & Co
37 sy,vanl
Z 33 4 1
30 Taxat Co .
.. 3511 Texaa Gulf
3SJi Textron
JUJ, Tirie-Aira ..
i ranaam
Volume edged up to 2.060.000
MiJ shares from 1,990,000 on yester-;
liif ' day's lesser decline.
I Tax loss sellina and the ewitch-
41,4 Ing of stocks waa very much in
progress as evidenced again by
the comparatively wide market.
In the market's sharpest dip
this week, the Associated Press
aVerage of 60 stocks dipped $1.00;
to $178.80 with the industrials
down $1.90, the rails down 90 cents
and the utilities unchanged.
Of 1.203 issues traded, declines
outnumbered advances by 636 to
2zii311. There were 76 new lows for
the year and 16 new highs.
Stocks and Bonds
Cemptled or Tka Aieec lated Pre,,
nee. se
BOND AVERAGES
2t It
- 70
JS'i
S'4
4i
Ma. I
5
?H I
JJi :
si'i
53',
4S, I
49
. A
171
Sll,
ZZZ jt'4!
T',
MS
44,
I
Trana Wo Air
49'i Tw" Can Fox
Z 3S, u
. 2SJ, Union Car
. S7i Union Oil
...lnsa Union Pac Ry .
Ol'i tJnl Aircraft
33 I'nl Atr Lines .
39i Unl Coro
3S Unl Fruit
JJ!' i Net Chans
Jni Thuradav
Prev. Day
21 ! Week Aso
M.mth Ago
47U No Am Avia
lln Pmf Rv -
3fl NW Airline, JTi tin r-iywooo
jjij 0 US Rubber
as nun M.ih SK US Steel
Veal-Top quality WrtMfrr, ou. Ei.v .Z )pW
Waih Water P
!'
-lH'i
. 5S
. so;
- 3",
. 42',
- .
. 44',
. 47,
Yeiir Ago
1954 High
1MM LOW
VJSi High
1W LOW
1-Ntw ISM lows.
1 14
Ball, ladu, I'tll, Frga I
D 3 Unrh D 2 A . I
S7.1-I HO 7 R8.-I Sl.S I
S7 4 SO 7 as 3 SI.4
S7 S HI 7 SU.S Sl.S !
sua i.4 ss 4 si.s
ua on , ox . t
m , iv? V aa A ' ! I
S7 1 M7 Ml SOS
(HI S 9 S 100 I H I
94.1 S.4 M S4.t
STOCK AVERAGES
3 IS
IS
Faat Kodak .
El Paao Gas
Emer Radio .
F
Falrchlld
Fllntkota
read each annual report received.
Chicago Livestock
CHICAGO, Dae. St W (USD A)
Hogs t.OOO; fairly actlva; study
to ZS higher on butrhara; moat lata
and cluig aalaa IS to IS higher;
tool steady ta 35 higher; advance
oa weight! over 4O0 lb; No. 3-3
p,iv-.f giad hHa 19U-34 IB butcher
17IHI7.5D; few lot, 1-1 IM-UO lb
II u 17 S3: 13 I30-2M lb 14.50- 7 00;
few 1M-SM lb moaily No. 1 18 00
14 3": larger lota My-iM lb aowa
14 i . 15 ,vi; liltle below 14 SO; wtlghu
tin'T 30 lb scarce; shipper took
l.if-'i.
( jille S.AnO; ealvas StW; ataera and
heiirra mouerataiy acUvet generally
steady; . canner and cutter cow a
eie.v; tituity and eonunercial cow
airanv to JJ lower; bull, fully
steady; vealer ateady to etrong; in
aiam i-a 1 ou hhar; stockera and lead
er, vieariv; lw loada and kits food
to avrrare choice ateera and yaar
lin, n.Su-12 oo; latter prk-a for a
part toad 1UJ lb; No high choice
or prima ateera offered; atandard to
low good trer 14.SO-17.ZS; lew loaoa
good and choice heifer 17.00-10.00;
ianrird to low good 14.1S-U 75; Uttl
ity and commercial cows 1S.S0- I SO;
atron weuht canners and cutters
(-io.M): torn lirht cutters S.M and
below; utility and commercial bulla
4 (ni ls on; good and choice vealer,
1 wi-23 00; odd heed H 00; light cull
down to 7 00: good and choice 4S-S-:)
lb ateer calvea lS.3S-lS.Sa.
rxeeo 1.SO0: active; lamba strong
fa i higher; full advance on wooled
lamr5; aheep steadv; good to prime
wooled lamb M-10S lb II 00-30 S3;
prime native up to SO. SO; part deck
choice and prima wooled lamba 131
lb at 34 00; choice and prime shorn
),-r.i., iM-iog lb with No. 1 pelt IS so
la ij; cull to enoire ewea 4 Oo-S 00.
Chicago Grain
CHICAGO, Dec. SO U Grain;
Opea . Clea
WHEAT ,
Wrcy , l40,0,
I" ay j S.M',..
Julv )!),.! I WH
September 1.XS-3S . . 1.31, -CORN
, .
WUrch
lwav
Julv"..
September
OATS
arcl,
IY
JulV
t S5V! t.34Vi
I.aa'i
I 40
. 1.37',,
.TS'l-li
.70i, '
.71
1 3T.-3
1.40",
.37i,-H
,TI
.7V,,
.TO,
.71 'i
Grains Note
Routine Day
CHICAGO, Dec. 10 ID Small
losses outnumbered equally small
gains In routine dealings on the
Board of Trade today.
Most consplcious weakness was
in new crop wheat. It was down
more than two cents at one time.
Wheat closed 1H lower to 4
higher, corn H-14 lower, oats un
changed to lower, rye un
changed to higher, soybeans 4
lower to 4 higher and lard 7
cents lower to 10 cents a hundred
pounds higher.
R waa apparent many traders
were disappointed ever the Agri
culture Department's 1957 winter
wheat crop estimate. After the
close yesterday the department
forecast a crop of 124.853,000 bu
shels.
While this would be 110.(142.000
bushels less than the" 1956 crop,
many traders bad expected a
sharper decline in view ot the fact
nearly 11 million acres of winter
wheat land had been put into the
soil bank.
March wheat provided quit a
contrast with the new crop fu
tures. Part of the demand for
March wheat stemmed from the
very strong manner in which the
December wheat future was
closed out in yesterday's market
Grainmen did not consider Chi
cago stocks of wheat as unduly
large. - . .
Pakistan purchased X. 600, 000 bu
shels of wheat, but it was all the
Pacific Coash white variety.
m m. u 1 ; e ea
ju-js; ruugn ucavica. ij-i. -
nogs uest ugnt oioccers, zi-a; , East Air u
lean light sows, :-20.
Lambs Top grade, 34-36.
Mutton Lightweight ewes and
wethers, 10-12; rough neavies, 3-1.
Fresh Predtsee
Onions Idaho Yellows, SO lb,
2.35-50; med. 1.25-50; white. 3.00
50; Ore. Danvers, med, 1.50-2.00;
3 In. 2.J9-50.
Potatoes Local Russets, No. 1,
100 lb 2.50-75; Central Oreg. Rus
sets. 3.00-50: lee 6-14 os, 4.00-25;
No. 2. 50 lb, 1.15-25; Idaho bales.
5-10 lb. 2.23-50; Wash. Russets, 100
lb, 3.00-25.
Hay No. 2 green alfalfa, baled,
f.o.b. Portland. 34.00-35.00 ton.
Apples Boxes Oregon', Wash
ington Red Delicious, extra fancy
tray pack ana wrappea, meaiuni
6.50-7.00; large 5.50-6.25; loose
pack 8.00-3.50; - regular Delicious
tray pack 5.50-6.00; Red Romes
tray pack, extra fancy, 4.25-4.50;
Wincsapa wrapped extra fancy
5.50-6.00: loose 4.50-4.75; Newtons
loose, extra fancy 4.25-4.50; Stay-
mans loose 4.00-4.25.
Celery Local 2 dos. 2-7S-3.2S;
California 2-2 dos. 4.00-3.00;
hearts 2.50-2.75
., Pabco
al . p,c G At El .
Pac I I .
', pan Am Air .
Penney J C
Penn Hy
10 Pepal Cola
; 34e Phelps-Dodge
" m Air Br
l'l33.
Western Air
Western Elec
Western Union ,
IB".
. SOI,
Si's
, 17
. S3 I Zenith
Net Change
Thursday
71 , I Prev Day
j weea Ago
, Month Ago
i Year Ago
ima nigh
RM Low
IMS High
195S Low
Woolworth
M'i
3S'
18i
'
, S4a
IS.
43,
Indus Rail, I'tU, Slks !
ni l D Unch Dl S !
31.5 1301 71 1 17BI
334 131.0 71 1 179 1
Jlt I 1.13 71. S 17.
2.S1.S 129 71 3 174 4
234 4 137 S 73 J ITS
37S3 135.1 7S.S 191.1 il
244 6 121 Oa S 171 S I
I57.S 141.4 75 7 1B1.S
303.1 114 I S7.I 14
.104',
Portland Grain
Portland Livestock
. PORTTJiKD ( fUSDA) Cattle
salable 200; cows steady-weak in
cleanup trade; canners ana cut
ten 4.0O-S.25, few 1.50. heavy cut
tare OA.I V) shell dowl tO 5 00)
utility cows 10.00 -11.00; utility
bulls 13.00-14.50, light cutter duiis
1.00-12.00.
Calves salable 50; no test on
good and choice vealers: few
atanrlarrl 14 00-19 00: cull and Util
ity calves and vealers 6.00-12.00.
Hogs salable 150; trade moder
iai mrtivm full adeadv: sorted
No 1-t erarla butchers 11.25-16.50.
mixed No. 1-2-3 grade lots 17.50-
16.00, sorted off No. 3s 17.00; sows
mixed No. 1-2-3 grd HO-5 'b
12.30-16.50.
Shawn anlahln 100: market mod
erately active, about steady; good
and choice' wooled and shorn
alaufhter lambs 16.00 17.50. no
choice lots offered, utility ana iow
good slaughter lambs 15.00-16.00,
and medium liehtweinht
feeders, 10.00-14.50; cull to good
siaugnjter ewes x.uu-a.w. :
Chicago Butter-Eggs
-rtnrACO. TW. la u (USDA)
nnttr ataadv? wholesale buying
pricea unchanged to V, higher: S3
score aa a'.,-ae-,i wa avS'ea-X
W B 5i-l,b; SS C SS-W,.
Veka atead! wholesale buying
pricea unchanged: SS per cent or
better A wnii men mm a
rib: Standaxde 19-38',: checks St-
SSf...
Chicago Onions
CHICAGO, Dee. - Onion.:
. OS High Lew Csese
January ' .! 4 , M J
February I I OS 1 01 1.01
March 1.11 IIS Ul MS
Richard Rogers, composer of
"Oklahoma!", and other musical
hits, was the first freshman ever
to compose the music for a Colum
bia University varsity show.
feptembtr
..
March 1 471,. 1,471, .
May MS i.4Vtfc
Juiy . , 1.4a .4
(.eptember 1.48 1.4',.
aOYnEANt,
January 1.454, I4i,',
March .4i,-'t 1 34-B0
lav , , t 51-51 1, I 51',-4
July J4v!s l4S',-,
tiember .. S.4I .40!,.,
AH
i r il
:u wv ; JU y
H'Sf';;;;;:
' I
. "Wefl
CASCADE
QUALITY
Country Smoked
Sugar Cured '
Wh:!w cr
Shznk Half
P:r Pcund
mm
rprp
M.D. tO Count
NAPKINS
Pkg. 5C
Limit 1
Maxwell House
mm COFFEE
Jar I IV
Limit 1
Downtown
Shoppinf
- ' "
PORTLAND kfl Coarse grains.
15-day shipment, bulk, coast deliv
ery: Oats No. 2. 38 lb white 37.00.
Barley No. 2. 45 lb B. V7. 51.50.
Corn No. 2, E. V. shipment 61.25.
Wheat (bid to arrive market,
basis No. 1 bulk, delivered coast:
Soft White 2.49H: Soft White (ex
cluding Rex) 2.49H; White Club
2.49H. .
Hard red baart: Ordinary 2.49'i:
10 per cent 2.49H; 11 per cent
2.49; 12 per cent 2.49V..
Car receipts i Wheat 71; barley
2; flour 3; corn 2; oats 1; mill
feed 2.
Dow Jones Averages
An electronic "eye" now permits
blind operators to work on private
telephone switchboards. The "eye"
is attached to the index finger of
the operator.
HEW YORK. Dec. 30 UP Dow
Jones cloetng stock averages:
High Law Cieit
30 Industrials 4M.S7 4SS.Z 490.44
in Railroads 153 SI 131 SS 152.20
S Utilities 47 M 92 67.3
SS Stock 172 83 170 M 171 M
Markets at a Glance
NEW YORK. Dec. 20 U"
Storks Lower; slow decline.
Hoods 4 axed; government
din.
Cotton Steadv; alow trading
CHICAGO:
Wheat Old crop firm, new weak.
corn F.asy; liquidation.
Oats Easy with corn.
Soybean a Mixed; (mail p r I c I
cnanges.
Cattle Steers steady.
Hngs Steady to 23 cents higher.
IT R
iallvooi
TOO I
fJsrARTHIRt
yfO are candled
w'-fl1 care
fvtry tint you buy Nufadt ggs you fcnov
fhty'f frtshl Only car fatly candltd and gradtd f
local iarm-frtsh ggs go info Nulad cartons.
LCOX F0.1THE DUID
AT YOUR GROCERS...
SHORT GROCERY BUDGET THIS MONTH?
SHOP OUR STORE AND MAKE IT STRETCH TO FIT
1940 Minion St. ? Phono EM 2-7661
NAUEY'S
DEMONSTRATION SALE
Freo Chili and Betf Sttw
CHILI Beef Stew
sss. $i.oo 3 ;. $i.oo
12-14 Lb.
TURKEYS
WHILE THEY LAST
C4H Powdorod or Brown
SUGAR
i
LIMIT
lb.
Pkg.
Cottago Strained
CRANBERRY
SAUCE
BULK XMAS CANDY
Gum Drops
or
Orange Slices
- Comt To 0
For A Nict
Big Christmas
Goose, or Duck,
Or Capon, or
Roasting Hen.
Also Fine
HAMS
Whol. or Shank Half
BONELESS ROLLED
RUMP
ROAST
TENDER TASTY
T-BOtlE
STEAK
LEAN
ROUND
STEAK
ALL MEAT
top simoin
LAST
CHANCE
For Tickets On
Our Big Free
DRAWING
To Be Held Sat.
1222 At 7 P.M.
BLUE PLATE
SWEET
SPUDS .
Ursa Tia
Yk Pick
PILLSBURY
ANGEL
FOOD MIX
Itf, 53c
rtf.
3D'
DUBUQUE SMOKED
PICNICS
SUNSHINI KRISPY
Crackers
w i
ALCOA ALUMINUM
FOIL
25-Ft. Roll
NAMELESS
Is The Best
Place In Town
To Buy Produce
CELLO BAG .
CELERY
HEARTS
c
Pkg.
SNOWY WHITi
CAULIFLOWER
&
lb.
FRESH
CRANBERRIES
To Allow Our
Employees, A
Chance to
Spend
Christmas With
Their Families
We Will Close
At 6 P.M. j
Christmas Eve
And Be Closed
Christmas Day
1 Shop Early
And Save!
7 -