The Courier News from Blytheville, Arkansas on January 25, 1956 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

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Blytheville, Arkansas
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Wednesday, January 25, 1956
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Page 3
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, JANUARY 16, 1998 BLYTHEVILLE (ARK.) COURIER NEWS PAGE TBfREa Keeping Stockholders Happy Is Industry's Big Concern By SAM DAWSON NEW YORK (AP) — The cars and feeding "of stockholders occupies business management's concern more today than it used to. Sensational proxy fights in the last two years have focused attention on what mates shareholders unhappy usually dividend policies or declining market value of their shares. __ The big bull market, numerous*. :—' — itock splits, and such big issues of new or additional common stock as Ford, Campbell Soup and General Motors, and American Telephone & Telegraph's convertible debentures have united to spread stock ownership among people who never owned stock before. That makes all the more shareholders that corporate management Soviet Hot Competing With US in Automobile Field noiQers tnat curpoiut/c iiiatittB ctul . v *u*i ^ GIIUGIVUHH& *\i m.*.*.. — r nov must'keep reasonably happy with and surpass the United States and contented. With the peak season ol annual but it definitely is not competing stockholder meetings only a few weeks away, the question of "fairness to stockholders" is to the fore again. '. — Citing a continuing study of management practices of 4,000 corporations, the American Institute o! Management is issuing today a two- edged guide to fairness, intended for use by both management and stockholders. It discusses how dividend rates should be set, whether they should be paid out of accumulated surplus, the plowing back of earnings, stock splits vs. stock dividends and annual reports. By Balance Sheet The Institute holds that a company's dividend rate should Be determined by its balance sheet rather than by its annual earnings. It argues that "dividends can be paid out of disposable liquid assets, not out of nominal dollar earnings which may need to be reserved for purposes other than dividends, or which may have been channeled into inventory accumulation." A firm annual dividend rate "below which the company will not reduce payments" is the policy of better managements, the Institute holds. Unusually high net income should call for an extra dividend, it contends, and larger ordinary dividends shouldn't be declared unless management "feels the new rate can almost certainly be maintained in all future years." The guide also favors, "where circumstances warrant," payment of dividends out of accumulated surplus, despite losses in income—as many companies did.during the depression. Too High Institute prefers the stock dividend to the stock split except, when the market value of a stock has gone too high for the average Investor and the price is subject to violent swings. It holds that a split means a reduction in the par value or the stated value of each share. The stock dividend, on the other hand, shows "management's concern for the welfare of its share cern lor tne wenare 01 iw auuiu iciunvuo a HH *.<" ™ **•— -holders," the Institute contends, of the companys' progress, or laclc The stock dividend means "a trans- By TOM WHITNEY NEW YORK {*—The Soviet Union is endeavoring to catch up in many basic lines of industry, with America in building motor ars. Thus -Ivan, the average Russian ^ m-p t.n nwn JL private car, is going to have to wait a very long time for one. The limited production of passenger automobiles will continue go to the favored few. Even they must -wait as much as a year for a small Pobeda sedan, equivalent of 2'/> years' wages of an average non- farm worker. The Soviet economy will suffer too, for truck transport will continue for a number of years to play a relatively minor role in halllage. Only Recently The figures on the Soviet automobile position have become available only recently. For many years the government avoided publishing them — presumably because they were not very flattering. But in connection with the announcement of the new 1956-60 five-year plan, the Soviets revealed that in 1955 they turned out 445,000 motor vehicles. Of these it can be estimated that about 115,000 were passenger cars and 330,000 trucks. The government plans to increase production by 46 per cent by 1960, to bring total production to 650,000. Around 215,000 are to fer of accumulated earned surplus, or of capital surplus, to the stated capital value of the shares"—a pro cess that does not occur with a stock Plowing back earnings into plant, equipment, land, patents or processes is necessary to the health of growing companies industries, the guide points out. In such cases, •'« low pay-out ratio of cash dividends to earnings is another proof of fairness to stockholders" and the latter should recognize that growing companies often can't regard their annual net income as deductible surplus for dividend purposes. Annual reports, the Institute says BternVy, should "subordinate public relations appeal to be a true account of it." be passenger trucks. oars and 436,000 This small production must do for a vast country with an estimated population of 220 million In 1955 the United States produced nearly eight million passenger cars and 1}4 million trucks. Britain, Germany, France and Canada also outproduce the 0.S.S.B. By Choice If the Soviet government is producing relatively few motor vehicles it must be by choice. The logic of this choice is also fairly obvious. Apparently, the Soviet leadership feels that the enormous quan tlties of metals, rubber and othei raw materials, the large produc tive capacities, and also the extensive fueling, repair and main tenance facilities necessary to pro duce and maintain a tremendous fleet of automobiles can be better used for other purposes-^-for production of armaments, capital goods, and also of consumer goods which require less expenditure. And the Kremlin is probably conscious also that the creation of an automotive economy would require a vast program of road construction. The Soviet Union at the present time has a few highways which are passable by American standards, but as a whole it is roadless nation. Green Hair Brings Suit CHICAGO (*—Green hair doesn'1 suit her role as a concert pianisl Marya McAuliff, 41, asserted in asking $35,000 damages from a beauty parlor. Her U. S. District Court suit stated she went to the Jacqueline Coch ran Beauty Salon to have her hair dyed blonde last August. But her hair turned out green, she com plained, and when she used a liquic from the salon to remove the dye some of her hair fell out. What's left is still green, she said. Two coats of metallic zinc pain will protect zinc galvanized sur faces from rust for several years tired of being a HOT WATER WAITER? change to an Automatic Natural Gas WATER HEAfER Only GAS heats three times faster than other automatic types! Costs LESS to buy, install and operate! Ark-Mo Power Co. Republic Studio •ixes Budget HOLLYWOOD W—Republic i _ io plans to spend from 12 to 15 nillion dollars this year in movie roduction and preparation—about ouble its budget of any former ear. Studio president Herbert J. fates, announcing this yesterday, aid another big-screen process — lepublic's "Naturama" — will be sed, for the first time, in filming The Maverick Queen," from Zane trey's novel. "Naturama," Yates said, "eliminates distortion and grain and will I mprove photographic and color' uality." FFA SWEETHEART — Miss Betty Gail Speck, daughter of Mrs. Mary Francis Speck of Joiner, has been named FPA sweetheart of Shawnee High School where she is a senior. 'raise of Hubby Jrings Arrest ENID, Okla. UP)—One Enid house" wife will think twice before she ings her hubby's praises in public. Qame ranger Bill Severe filed iharges of shooting migratory wa- j er fowl against two Enid men Monday. The two pleaded guilty and each paid a 525 fine in Enid ity court. The ranger said he would never ave known about the incident if. one of the men's wives had not j given a picture of the pair and the wo swans they shot to a local ground. They got only It oonts but Before laundering & sweater, run with jobbers— for ttw Jo«rtii time in his 80 years of Still Punching . Kohler lost his glasses and a ring a line of basting stitches through He said lie was set upon by two CHATTANOOGA, Tenn. Iffl' — Prank Kohler recently reported a young men and was thrown to the THEY WERE A SENSATION BEFORE! OUR BUYER RUSHED TO NEW YORK AND LUCKILY WE WERE ABLE TO GET A SHIPMENT $30 to $35 Values Nothing ^without wings climbs like a '56 Chevrolet! The new '56 Chevrolet handles hills like they aren't even there! Aim it up a steep grade ... and you'll see why it's the Pikes Peak record breaker! Ever level off a mountain with your foot? Nothing to it. Just point this new '56 Chevy uphill and ease down on the gas. Up you go with a quiet (hydraulic- hushed valve lifters now in all engines —V8 or 6) rush of power. This is the car, you know, that broke the Pikes Peak record. The car that conquered -towering grades and vicious turns to prove it3 superior performance, handling ease and cornering ability. These are built-in qualities that mean more driving pleasure and safety for you. Chevrolet also offers such safety features as seat belts, with or without shoulder harness, and instrument panel padding at extra cost. You've a choice of 19 frisky new Chevrolets all with Fisher Body and with horsepower ranging up to a new high of 205. Drop in, when you have a chance, and drive the new record breaker! THE HOT ONES EVEN HOTTER SULLIVAN-NELSON CHEVROLET CO. JOl Wf»t Walnut Phone 3-4578

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