Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (s.,h.dl OFFICES COAST TO COAST CONNECTEr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER October 15,1954 DOW CHEMICAL CO. Statistics Even though sales have flattened out in the last two years,Dow has Current Market 38t- no equal in the chemical industry Current Dividend 1.00 -A as to groth. Net sales rose from Current Yield 2.6 130 million in fiscal 1947 to 43 Long Term Debt Preferred Stock Common (Shares) 247,535,700 -B 22,651,011 million in fiscal 1953. In seven years, Dow's investment in propert has tripled. Since 1950 it has averaged better than 90 million Net Per-Share-, 1953 Net Per Share,1954 j;l.-54-C- ……….ayeaJ',..( ov.er1jashar)inci3.'p.;Ltal'-' outlay. Much of this expansion was 1. 42 -C certified for accelerated amortiza Sales, 1953 Sales, 1954 430,400,000 -C 428,300,000 -C tion as defense construction. Dow wrote off 65 million (almost 3 a share) in fiscal 1954 and will Market Range 1952-1954 44t – 33t- write off approximately 75 million (3.30 a share) in fiscal A Has also paid 2- stock dividend 2' 1948 -1953 with exception of 1951. It is not expected to pay an extra dividend in stock this year due to a new New York Stock Exchange ruling that regorted earnings of a company are expected to cover cash dividends paid plus the amount of the stock dividend. 1955. Thus, cash flow earnings are equivalent to roughly 4.50 a share. Amortization in excess of normal depreciation is almost 1 a share. With this high amortization rate, Dow is financing plants which can be expected to earn prof its in the future. This heavy cash flow has kept Dow in a sound finan B – Including lOO,OOQ,OOO in subordi- cial position. On May 31st,1954, nate debentures convertible into common cash items exceeded current liabi- at 47.09 a share through July 1,1962. lities and working capital was 150 million. Subsequently the re- C -Fiscal year ends May 31st. ., — – — — – – – maining 50 million in bank loans –were-p-aidoff-and-the-pL'e–rerred– stock was retired at a cost of over 32 million. Dow manufactures over 600 chemical products. In fiscal 1954, 57 of sales were accounted for by industrial chemicals, 32 by plastics and 11 by magnesium. The company is a major producer of chlorine, bromine,styrene, vinyl chlorides, saran and nolyethylene plastics, ethylene and other petro- chemicals. Dow will be najol' roducer of YJolyethylene and synthetic gly- cerine when expansion of olant is completed and in full operation. Plants are operated in Midland, Mich., Freeort, Texas, and eleven other U.S. locations. Dow has a 50 interest in Dow Corning Corporation which holds a leading position in the growing field of silicone chemistry. It has a 50 interest in ETHYL-DOW CHEMICAL COMPANY which produces ethy- lene dibromide for anti'knock fluids. The 50 owned SARAN YARNS COMPANY, nroduces a material to wrap foods. Dow wholly owns Dowell (oil well ser- vicing) and BRAZOS OIL & GAS which has substantial natural gas reserves. Dow's sales have in the Dast been almost entirely to industry rather than the consumer. Now it is attempting to enter the maSs consumer market and has recently launched a program to reach the consumer under its own label. The new TV show MEDIC on NBC is sponsored by Dow and has received very favorable reDorts. It is in competition with the CBS show I Love . Lucy. It. promotes .Saran Wrap,. a Dlast.ic ..material for wrapping foods. This i appears to be just a start to a direct appeal to the consumer. Other products with a mass appeal will undoubtedly follow Saran Wrap. Dow Chemical has no particular appeal for the short term trader. It is a typical long term growth situation. It is, in my opinion, an excel- lent stock for participation in the Monthly Investment Plan which the New York Stock Exchange has so wisely sponsored.From a technical viewpoint,it is slowly building UP a base pattern in the broad 44-34 area. The downside risk appears to be about 35' or P. below current levels. On the upside, the potential over the next several years appears to be 65-75 or over 80 higher. EDMUND VI. TABELL WALSTON & CO.

I) Walston f,- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK ANO COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw;h.dd I / OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER October 22, 1954 The action of individual issues continues to highlight the stock market pattern. For example, the cement stocks were active and stronger last week and one issue in our recommended list, Penn-Dixie Cement, moved up over ten points in less than five days. It is this rotating strength that keeps the market strong with some groups moving forward while others consolidate and rest. This type of action should continuR over the fore- seeable future. Investors and speculators alike must realize that their market decisions should first be geared to the action of the individual securitY,Goncerned, and sec.ondly, to the actio!! of .the-,.-avet'ag-es., Stock-k. – whose technical pattern suggests a move from 40 to 60 over the next year Ior so and Stock B whose technical pattern suggests a drop om 25 to 20 over the same time period will both most likely reach their individual objectives regardless of whether the averages are 375 Dr 25 a year from now. I I l I As far as the general market is concerned, the technical action of the averages continues favorable for the longer term. 'The industrial average, which had shown poor internal market action during the September rally to 366.40, had its expected decline, but it met support at right where it should — at the highs of the July and August rally tops of 351.50 and 352.27. The October 15th low was 351.54 and the market has rallied to a high of 360.46. The important points to watch are now the September-October high of roughly 366 and last week's low of 351. A decisive penetration of either of these will most likely furnish the clue as to the action of the general market over the near term. An upside pene- tration would most likely indicate a further advance to the 375-400 area and a downside penetration would indicate a decline to the 330-315 support level. The election returns mayor may not exercise considerable influence on the direction of the breakout, despite the fact that the market appears to ignore the possibility of strong Democratic gains and aEossiQle delay ir!. President Eisenhoj\'er' sG)),nstructive t,ax program that will eventually help the worker more than big business. The rails also have shown improving technical action. They held up very well while the industrials were declining and,during the past week, the rail average reached 121.50 and equalled the August high of 121.51. 11 decisive penetration of the August high would most likely indicate an extension of the advance to the 127-130 area. On the downside, a decline below the September low of 114.93 would probably indicate a drop to the 110-105 support zone. However, regardless of the action of the averages, individual issues will continue to pursue their own course over the intermediate term.There are several issues that I continue to like kmerican Potash B, after reaching a new high of 69 1/2, on the announcement of the plan to construct a new plnt to make lithium chemicals, reacted to 64 1/2. I believe this stock should be bought on all minor price declines.There is support in the 65-60 area. The long term price objective fer hmerican Potash on my technical work continues to be over 100. I c(.ntJnue to like Pan-American-World Aiways. It is selling in the 15-16 range and has the most favorable technical pattern in the favorabl airline group. I would also add to holdings of Yale & Towne in the 47-44 area. Earnings for the third -quarter- will most likely be not much bett-er than-those of — the poor second quarter but from there on, earnings figures should improve sharply. The initial objective is 60 followed by higher levels over the longer term. \'Jestern Union should also show improved earnings next year. Some sources indicate possible 10 earnings in 1955. The stock reached a new high during the week at ,- '59' Would continue to iJu,r on minor price declines. I also favor purchases of Black & Decker and Dresser Industries. EDMUND W. nBELL VJIlT ST0N & CO. '0 t'nil' mlll' me,,oradum is not tI.!IV' olin ,nter'II In be lome cOllrl,led or .11 01 f ff t ., lin off,r Of lohcltehon 0 0 ef' 0 the ,.curitie. m.ntloned hr., Th,' b II n .ecurit lounyCJo'rnI'd. m . I hal r.t. in b or From 'tin. to prepared b.it fia! and nof me 1,1 ,n , Wahton til a m, ,ded to &C flu for, o, of clo oir 'oarnmy ,tpiooIllI,'OtI.l'Ythereo'fI, l1 indep,nd.nt ,nquory .t.,bll,ed upon i'olm.IoolI beli ….d rehabl, but no' lI,ceerlly comp II no quotran ee u ,

For Il of Earnings 1929 ' 540 1937 465 1946 470 For l or While quite a few Issues appear Dividends 478 352 high enough, there are an equal or larger number of issues that still indicate higher price levels. 454 The technical pattern appears to suggest an even more selective These ratios, however, ignore market than the very selective some important facts. The divi- market we have witnessed Over dend payout today is less than 50 of earnings. This is a very low ratio. A 66 payout is the past five years. Best opportunities for capital enhancement appear to be in the backward IS- much more applicable over a pe- sues that are just a shade below riod of time. They also ignore thc top quality and aTe in an upward fact that these ratIos apply only earnings trend. to the 30 stocks in the Dow-Jones Industrial Average. There are Summary many light blue chip Issues that In summary. the market shows are selling at only six to eight no signs of an important top like Urnes earnings and are YIeldmg 1929, 1937 or 1946. .. 6 to 8. This present situation is qUIte different from 1929, 1937 and 1946. In these past periods all issues were sellIng at high prIce to earnings and low dividend yields. These Hhght blue chip or secondary issucs could have a considerable price rise before thcy catch up with thc ratios that prevailed in past periOds of overvaluation. It is possible, however, that an intermediate correction could occur at any time. ThIS mtermediate correction could occur from present levels or from a somewhat higher level. If the November election turns out favorably from a Republican viewpoint, the mdustrial average may reach approxImately the 400 level Whatever reactIon occurs will Technical Viewpoint be comparatively mild There are successive support zones at 330 The last consideration is the and 315. This compares with a outlook from a technical view- 1954 low of 278. point. On a broad overall pattern, Even If such a reactIOn occurs, there IS nothing in the present it will be extremely selectIve. technical pattern that ,suggests There are many mdividual issues anything resembling 1946 or 1937 that indicate higher levels over or, even less, 1929 Very few vul- the next year regardless of nerable distributorial patterns wheth'er the averages are selling have been formed. Some stocks at 400 or 325. appear in need of a restIng or The present market IS a'much consolidation period These are more intellIgent market than mostly in the group known as those of the past. Low-prIced and growth stocks General Electric, tertiary Issues will not advance for example, has reached all up- just because the general market side obJectives and may hold in is in an uptrend Purchases must roughly the 48-38 area for a year be confined to issues with im- or two before resumll1g ItS long- provmg sales and earnings. term uptrend On the other hand, Regardless of temporary inter- there are a great many secondary ruptions, the market IS headed for issues that still mdlcate higher higher levels over the longer term levels WhIle the averages are There may be a resting period for selling at new highs, thiS does not a year or two during which the apply to the general run of stocks. industrial average may hold in a At present levels of around 360, range bounded by 400-370 on the the industrial average is now con- upSIde and 330-315 On the down- SIderably above the 1946 high of SIde Dunng this period individ- 213 and the 1952 high of 295. Yet ual issues could advance mdI- over 60 of the 1,000 most ac- vidually. The overall trend is tively traded Issues on the New toward higher levels and I doubt York Stock Exchange and the If the Dow-Jones Industrial Aver- American Stock Exchange are age sells, except momentarily, selling below the highs reached in much below 300 for the next the 1946-1952 period. decade. 4 , SENT OUT AS MARKET LETTER OF OCTOBER 29,1954 Reprinted from 17,e COMMERCIAL anef FINANCIAL CHRONICLE Thursday, Octobe.,. 21, 1954 ,. Higher Market Ahead Over the Long Ternt By EDMUND W. TABELL Partner. Walston & Co., New York City Members New York Stock Exchange Market analyst' sees black-and-wbite contrast between 1929', and today's market, citing interVening inflation population increase, national output rises, and growth in leading com panies' earnings and dividends. Maintains possible imminent Democratic election vdory would Dot entail long-term economic harm. Concludes while intermediate correction could ocCur at any time, market shows DO sign of major top, with D-J Average rise to 600 by 1958-1960 a 'distinct possibility ' The stock mal kct. .15 measured today's market and that of 1929 by the Dow-Jones L II d 1I S t l' i a 1 is almost as great as the differ- Average IS now Wlltllll shoottng ence between black and white dIstance of the tamed 1929 high Concern over the fact that an of 386 Not so average is approaching the 1929 many yea rs high ignores the t rem end 0 u s ago thIS goaI was conSIdered 'almost im- changes that have occurred in the past 25 years It ignores the ' \ change in the -purchasmg power possible ot of the dollar. In 'terms of a con- achievem e 11 i. stant 1929 dollar, the '–present, Now It Iooits market is seUmg around 230 as as though the compared WIth 386 in 1929 It high of 25 ignores the cUlTent replacement years ago will value of a company's plant. It easily be passed – possibly In 1954 Ignores the fact that population has increased 40 million since 1929. It. ignores the fact that the na- -undoubtedly tion's total output (in real terms inthenext -not just in dollars) IS more than year Or two. dOUble what it was In 1929 It It appears Edmund W. Tabell ignores the fact that personal in- that my 1948 predIctIon that the come (after taxes) has increased Dow – Jon e s Industrials would 236, that industrial capacity has reach 450 by the late 1930's may doubled, as has the output per have been quite conservatIve. A worker. It ignores the changes level of 600 by 1958-1960 now in Individual companies. General seems a distinct possibility. Electric at the 1954 high of 481,6 QUIte a few people are begin- sold about 45 above the 1929 ning to think that the stock mar- high of 33Sh-but sales have in- ket is dangerously hIgh, and that creased 290 since 1929. Earn- the possibility of another 1929 ings have increased 200 and div- market crash is increasing. In my idends have increased 220 in OpInIOn, the dIfference between the past 25 years . ,, Difference in Technical 'dustrial Average In a little over a Conditions year Such superficlal thinking also 19nores the dlfference in tcchmcal stock market conditions from 25 years ago Speculative trading was rlfe in 1929 and the volume of trading greatly exceeded that of today, despite the fact that there are a much larger number of shares presently listed In 1929, brokers' loans were about seven times present levels and accounted for 9 of the value of New York Stock Exchange stocks. Today, brokers' loans are less than 1 of the value of New York Stock Exchange stock pflces. OutrIght gamblIng was a large part of 1929's volume. Today It has dIsappeared almo.t entIrely and we 'havc an investment market to a large degree wit h a relabvely small amount of speculatIon on a high margin basis. To compare the present 25tImes-earnmgs and less than 3 yield on some growth issues to a sIInilar condltion III 1929 also ignores some very important dIfferences., Today only a handful of growth issues are selhng at very hlgh price-to-earmngs rahos and low YIelds. They comprise a small segment of the entire market This Possibly If we revjew some of the reasons why the market started Its advance 13 months ago and then evaluate the changes that have occurred since that time, we might arrIve at some concIuslOn of how vulnerable the market is at present price leels. In the first place, the advance' has taken place wIthout any nse in general business. The Federal Reserve Board index of production was 133 m September, 1953. It is around 125 today Over the next SIX months, the general expectation is for no great change, but any change that occurs WIll most lIkely be toward slightly higher levels Thus, the business pattern should not be a depressant factor on stock prices, The main factors that brought about the 30 advance from the September; 1953 lows were roughly. (1) The long-term factors of the increase in consumptlOn demand brought about by not only the increase in consumer Income but by a more eqUltable distrIbution of such Income, the population growth and the tremendous increase In money supply condItion applied to almost every (2) The more favorable mvest- stock in 1929. Such a comparison ment climate brought about by also ignores the motivation of the the Eisenhower Administration. buyer Today, these growth issues (3) An easy money market. -such as Minnesota MIllmg, Dow ('4) Stock prices were under- Chemical and others-are largely valued on the basis of hlstoncal being bought for cash, not for any Immediate rIse in price and divi- pnce-to-earnmgs rahos, yields and the spread between stock and dends-but for long-term growth bond prices over the next 10 or 15 years. A drop In price would not disturb the buyer, who, in most cases, (5) Technical market consideratIOns. would' welcome such a develop- As far as the fundamental fac- ment to add to holdings. In 1929, tors enumerated in the first catestocks were bought in hope of a gory are concerned, there IS no resale at a -profit in a very short change in the favorable. longperiod of tIme. They were bought term patterns Consumer mcome on a low margin and a drop in has reached new hIgh levels and prices -eIther scared or forced the lS expected to continue a slow up- holder out of the market. trend. This should result 10 lDcreased demand. Gross natwnal Some Correction Ahead . product in the second quarter is While it Is evident that the up slightly from the fIrst quarter present market is in no way com- despIte a decline in government parable to 1929 as far as vulner- spending. Consumer spendmg and ability is concerned, would it not capital spending are showing signs be logical to expect some correc- of improvement All of this spend- tion of the unprecedented nse of mg is motivated by the huge over 30 in the Dow-Jones In- money supply pumped into our 2 (I \, I ( I economy in war and prewar years 1954 election could cause a short- At the present time, our gross national product amounts to about term decline. a Republican VOIncttohrey-ootrheervehnannd 2.82 for every dollar of active loss in the Senate or House- money. This is up from about 2 could result in a further advance at the end of 1945, but still sub- above the 1929 highs. stantially below the 3 60 ratio The easy money market should which was cstablished during the contmue regardless of whether 1910s and 1920s. A return to this there is Republican Or Democratic fIgure over the next five to eight control of Congress. This is an years would drive business for- important factor in stock prices, ward to much greater volum'c because of the spread between than we have yet enjoyed. The YIelds in bonds and stocks The population growth contmues to average yield on the stocks in the exceed estimates despIte the fact Dow-Jones IndustrIal Average IS that the bIrth rate for the next now 158 above the YIeld on few years may flatten out because high grade bonds This is down the young men and women reach- only sllghtly from 180 a year 109 marrIagcable age today are ago, despite the fact that stock the depression babies of 20 years yields have dropped rather sharp- .. ago There are. a much smaller ly A contInued firm or slightly number of them However, the higher bond market will be a sus- excess of bJrths over deaths In taining influence on stock prices. the first six months of 1954 IS an Here again there is nothing m the amazing 10 greater than last bond market picture that could year's all-time previous record. result in sharply lower stock The enormous crop of postwar prices. bables is growing up Today they are concentrated in the 6-14-year Invulnerability age group. From 1955 to 1960, The fourth factor of undervalua- they will be in the 11-19-year age tIon has been partially corrected group. After that they WIll be grown up and ready to marry and by the 30 rise in prices over the past year and some stocks that an accentuated crease wIll start populabon InIn the 30-year have advanced sharply could be subJect to a correctIonary or rest- stretch from 1945 to 1975, the ing perIod. Nevertheless, the im- number of people will expand by mediat,e pattern IS not particu- 65 to 75 millJon, We are only a larly vulnerable. The table below thIrd of the way through this 30- shows how much you paid for 1 year period of enormOus population growth These long-term fac- of earnings and 1 of dividends in the three periods of stock market, tors have Improved since a year hIghs in the last '25 years as com- ago. pared with prices a year ago and today' . Possible Election Repercussion There could be a temporarily. unfavorable change in the second factor The forthcoming national For!U or Earning!! 1929 19.30 1937 1660 For ;1 or Dividend!! 2990 22.00 election could result m Demo- 1946 1680 28.40 cratic control of the House and 1953 pOSSIbly the Senate This might result in a delay of the EIsen- . Today hower constructIve program and 'Septlmber 900 1310 1625 2262 cause a temporary market decline Today's figures are apPlOxIma- Over the longer term, it WOuld tions, but there is no doubt that cause no great harm. A trend the present prIces have gone a such as that which elected Eisen- long way toward discountmg the hower so spectacularly in 1952 undervaluation that eXIsted a year does not end in two years 1954 ago – but they have not yet results WIll be dommated by local reached the overvaluations of past lssues, The Democrats may show stock market highs The table be- some gains in hne with usual off- low shows where the Dow-Jones year national elections The 10ng- industnals would be today if 1929, term, trend still remams favor- 1937 and 1946 ratIOS prevaIled to- able for 1956 and 1960, but the day 3

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES ,( NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw,.,Id) OffiCES COAST TO COAST CONNEcnr. BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER November 5, 1954 The technical action of the market both before and after the election has been most impressive. Prior to Tuesday, the industrial average held at the 350 support level which was the low of the midOctober decline. On the day after the election, the Dow industrials rose 7.54 and then on Thursday gained another 5.45 to reach a new peak since September 19, 1929'. -Also, on Thursday-; the rail-average climbedtoo- a new high since October, 1930. Volume of trading stepped up sharply. These upside penetrations of the October 1954 highs of 366.40 in the Industrials and 121.50 in the Rails indicated a renewal of the uptrUnd. –, The next objective is probably an advance to the 370-400 level in the industrials and 128-132 in the rails. Regardless of the action of the averages, selected groups and individual issues will continue to show above-average action. Best acting groups continue to be building issues, airlines, electronics, department stores, aluminum, food products, fertilizers, farm machinery, steel and selected issues in the machinery group. Scme of the oils and chemicals are also showing signs of improving action. Listed below are a number of issues that, technically, appear to offer interesting possibilities of capital appreciation over the next year or so. To guide individual investors, I have classified these issues under their quality ratings. Group includes the more conservative type of investment. Group B includes issues of good quality but somewhat below the investment quality of the first group. Group C includes the more speculative issues Chain Belt Corn Products Dow Chemical Gel e'-'l.J fJ i j . s Hooker Electro. ' Allegheny Ludlum Allied tores American Potash American Viscose Black & Decker Blaw Knox Chicago,Rock Is. Cities ,service Admiral Corp. Associated Dry Goods Bell & Howell Certainteed Chicago,Gt.Viest. Continental Motors Greer Hydraulics Merck & Co. Monsanto Chern. Fenick & Fcrd Pennsylvania Salt Ffizer GROUF B Colgate Palmolive Combustion Eng. Cornell Dubilier Crane Co. Dresser Ind. Hewitt-Robins Idaho Power Lion Oil Union Carbide Union Oil United Fruit Victor Chemical Sinclair United Mer.Mfgrs. United Shoe Mach. Visking Corp. \estern Pacific Yale & Towne GROUF C Jaeger Machine M-K-T, pfd. Mullins Mfg. National irlines New York Central Northern Facific Pan-American ,drways Raytheon Robertshaw-Fulton- Simmons Co. Tung-Sol Elec. – Iestern Union Zenith RadiO EDMUND Vi. TABELL WALSTON & CO.

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEAOING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swa,ld) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER November 12, 1954 . Both averages have reached new high terri tory at 379.73 for the Dow-Jones Industrials and 128.05 for the rails. The renewal of investment confidence has been most impressive and the upside momentum is of such strong character that I am inclined to raise my intermediate term upside objective on the industrial average from my recent projection of 370-400 to 385-425. I would expect this objective to be achieved over the next six months. The recant rise'has been quite rapid, of course, and it is not expected to continue at its present pace. Any correction should meet support at the 370-365 level. As this letter has continually reiterated, this advance will continue to be selective. The price action of individual issues must be watched closely. Indiscrimate purchasing is not warranted. Some issues are reaching upside objectives and should be sold on current strength and the proceeds switched into other issues that will indicate higher levels. This type of action is not new. It has been going on since the advance started over five years ago. For example, in June of this year, the industrial average was around 330. Both General Electric and U. S. Steel were selling at around 47. Now four months later, the average is over 45 pOints higher and U.S.Steel is 14 points higher, but General Electric is 4 points lower. WESTERN UNION TELEGRAFH COMFANY Statistics While Western Union has ad- vanced quite sharply in price Current Market 67 since the stock was first men- Current Dividend 3.00 tioned several months ago in my Current Yield 4.4 wires and letters, it still appears to be an attractive Debt 44.4 million purchase for long term capital Preferred Stock appreciation. Recent earnings Common Stock (Shs.) 1,231,070 figures have been quite im- pressive. Tne nine months Net Per Share, 1953 6.77-A earnings of 4.50 per share Net Per Share, 1954 7.00-E just about equalled the 4.53 earned in the like 1953 period, Gross Oper.Revenue,1953, 220 million but third quarter earnings were Gross Oper.Revenue,1954, 218 million-E 1.82 as compared to 941 in 1953. Even more impressive was Market Range, 1952-1954 67 3/8-35 3/4 the earnings statement for the month of September, 1954. Earn- A – Excludes non-recurring income ings are issued monthly and this of 4.88 in 1953 year's September earnings equal- E – Estimated led 811, the highest comparable figure in twenty-five years, as against 461 in September, 1953. It appears that 1953 earnings of 6.77 a share, the highest Since 1947, will be surpassed in 1954. Western Union has done a tremendous job of modernization and mecha- nization since the end of World War II. This former prime blue chip sold at 272 in 1929 and 96 in 1936. It paid continuous dividends from 1874 through 1932 with 19261931 dividends equalling 8 per share. Since that time it has been plagued by high labor costs and the obsolescence of the old telegraph system. This has gradually been changed in recent years. In 1945, the company needed almost 65,000 employees to produce 192 million in gross operating revenues. In 1954, 39,000 employees will pro- duce approximately 218 million. A vast research program has unearthed – -2- entirely nevI techniques in the transmittal of written messages and the company, because of these new developments, now appears to be an expanding growth situation rather than the stagnant backward company of 1932 to 1945. Under the able management of VI. F. Marshall, the Presi- dent of the company, and his associates, Western Union has moved out of the real estate business into the electronics industry. For example, one of the greatest developments in communications is a machine called Desk-Fax which sends or receives telegrams in facsimile by the mere push of a button. This machine, when installed in business offices, cuts down labor costs considerably. By the end of 1954, twenty-thousand ' machineswill blnstalledand will.be s,e.nd;i.ng. andrcS'ivingtelegrams – – at- the rate of 16 million -annually —J..nother new development 'in- the fae'- simile field, Intrafax, sends messages within a single organization. It is used by (to mention only a few) organizations like ,merican I-irlines, American Express, American Red Cross, Bank of America, Bendix, Chemical Bank, E.I.duPont, Eastman Kodak, Federal Reserve Bank, Ford Motor, General Electric, Pan-merican, Standard Oil and U. S. Steel. In addition, there are 22,000 business offices equipped with teleprinter machines and private wires that are connected with tele- graph centers. Western Union is expanding private wire and facsimile services. A private wire system is being completed with the U.S.General Services Administration, providing a 15,000 mile nation-wide network. Since its merger with Postal Telegraph in 1943, the only compe- titor of Western Union is American Telephone which operates a private leased line system and a teletypewriter exchange service (TVIX). It has been recommended by Congress that Western Union acquire these communication systems and handle all domestic record communications. It would appear that this eventually will occur and that Iestern Union will be the sole company rendering telegraphic services. – — – 3jnce 1945; 'the- company-has spent over-125 mil-l-ion\lm-ost 100 a share) in mechanization and improvement of its plant and equipment. Approximately 20 million (over 15 a share) will be expended in 1954. Despite these vast expenditures, the financial condition of the company has improved. Debt has decreased from 84.7 million in 1947 to 44.4 million at December 31,1953. This amazing change, despite tremendous expenditures for modernization and improvement has been brought about by high charges for depreciation, equalling an average of approximately 11 a share annually since 1937. The cash flo(l earnings for Hestern Union in 1954, for example, will be approximately 19 a share or higher. Thus, on a cash flow basis, Vlestern Union is selling at about 3.4 – times earnings. This ratio compares favorably with airlines which are noted for selling low cash flow ratios. Sale of the company's investments in American District Telegraph and Teleregister Corporation in 1953 provided funds to retire bank loans and expand services. Book value of the common stock is roughly 140 a share. The stock has a very attractive technical pattern and has broken out on the upside of the long accumulation base in the 48-33 area in which it held since late 1950. The long term price objective appears tl2 be weI! over 100 share. ,.. EDMUND \11. TABELL vlf.lSTON & CO.

— – -r. Walston &- Co. MEMBERS NEW YORI( STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw.tmldl OFFICES COAST TO COAST CONNECTEG BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER November 19, 1954 FAN AMERICfN WORLD AIRWAYS Statistics The air transport stocks have shown exceptionally good techni- Current Market 17 cal action in recent months. From CUrrent Dividend SOl the lowest relative strength ra- Current Yield 4.7 ting of forty-six groups charted in May, the airlines have advanced Debt Frefer-red S-tock 43,125,000 to a position in the five highest –ra-ted – groups Mos t—4-nd-ividua-l–J.-r Common Stock (Shs.) 6,096,722 line issues indicate higher levels over both the intermediate and Net Fer Share,1952-A 1.09 lenger term, but the most favorabl Net Per Share,1953-il 1. 76 technical pattern in the group, in my opinion, is Pan American World Gross Revenues,1952 – 205 million Airways. From a technical viewpoin Gross Revenues,1953 21S million the pattern indicates an interme- diate term objective of 19-23 and Market Range, 1945-1954 29 -S a long term objective of 27-35.In an unfavorable general markt,ran ,'c – Inc ludes 661 in capital gains. j',merican would meet support in the 13-12 area. Thus, the upside potenr tial over the longer term appears to be lS points higher or over 100 as compared to temporarily five points lower or 30. This is a favorable technical ratiO. Pan American was incorporated in 1927. The company has grown from a minute route stretching from Key Hest to Cuba to the world's largest air- line with un international system reaching seventy countries and colonies on all six continents of the globe. The compaBy carries the American flag -to- most- pa-rts – of -theworld-f an i,meri-c-an opera-tes -about,-eG, GeO'-route- miles with an air fleet including 2S Stratocruisers, 45 C-6-Bs, 3 C-6-As, S L-49 Constellations, 10 Convair 240s, 26 Dc-4s and 7 DC-3s. On order are 7 DC-7-Bs for delivery in 1955 and 3 British jet planes (Comet III) and 15 DC-7-Cs for delivery in 1956. The operations of the company are divided into three divisions. The Atlantic Division originates from New York, Boston,Philadelphia, Chicago and Detroit and covers routes to Great Britain, Europe,Near East, Far East and Africa. The Latin-American Division starts from New York, Miami, New Orleans, Houston and Brownsville and reaches out to the Caribbean and Central American areas and to the entire east coast of South merica. The Pacific-Alaskan Division originates from San FranciSCO, Los hngeles, ort- land and Seattle and covers Pacific Islands, Far East, ustralia and Alaska. 50-owned Pan American Grace f,irways (Panagra), operates from the United States through MeXico and Central America to the west coast of South hmerica. Pan American's wholly-owned subsidiary, Intercontinental Hotels Corporation, owns nine hotels in South i'.merica, Mexico and Bermuda. Three were opened in 1953. Economic conditions have improved sharply in most foreign countries and this, together with probable convertibility of currencies, should help Pan American in the near future. The company has an interest in several small airlines and has a con- t-ra-ct to operate 'and maintain the -flir Force guided missile testing project at Cocoa, Florida. The company's operating revenues have growr. from 20 million in 1939 to almost 21S millionin 1953 or an increase of over 100C. Net income has not shown a proportionate increase, but has advanced from about 2 million in 1939 to almost 11 million in 1953. The two main reasons for the relatively poor earnings record up to 1952 have been higher postwar expansion costs and delay in establishing permanent mail rates. Ihile the majority of airlines have received permanent mail rates,Fan American is still operating under temporary rates for the Atlantic Division from 1946 to date, for American Overseas .irlines (purchased by Fan I,merican in 1950) from 1946 to 1950 and for the Latin I'merican Division for the year 1952. In 1952 and 1953, the Civil Aeronautics Board awarded the Latin-American .. …….,,a'li…..iiaiia-., – – –.. – '—– – Dlvision almost 8 million in back mail pay covering 1948 to 1953. In 1953 a permanent rate was established for this diviSion which was 5 million greater than that previously received. Fermanent mail rates for the Atlantic Division are currently being negotiated and involve a considerable claim for back payments since 1946. It is expected that the low temporary mail service payments will be substantially increased on a permanent baSis. It would seem that payment for the carriage of United States mail internationally should be made at rates fixed by the postal administrations of the world as members of the Universal Postal Union, a body to which the United States has adhered, by treaty, Since the last century. hs a member of this world wide body, the United States overnment compensates foreign-flag airlines for the transportation of United States mail at Universal Postal Union rates, which are higher than the rates paid United states-flag carriers for Similar transporta- tion. There appears to be no justification for this discrimination against United States-flag carriers rendering equivalent service. – TempoFarymai-l…-rates generallyprovide,for Gpel'ating-exp.ensesl3u-t-, do not take into consideration return en invested capital. Tbs another reason for anticipating a higher permanent rate than the present tempo- rary rate on the btlantic Division. This diVision is the most important division of the company and may be increasingly more so in the future. Establishment of permanent mail rates will go a long way toward eliminating the prejudice that Pan American is a speculative situation because of its dependence on direct subsidi'e s for overseas service. With the establishment of higher permanent mail service rates,this 'sab8Ldy would be lowered by a corresponding amount. 1,11 domestic air- lines formerly had large government subsidies,but only a few smaller lines now receive subsidies. On most domestic airlines, the mail pay- ments have been reduced to a point where thy only compensate for the actual service charge for carrying mail. Because Fan Icmerican operates in a world-wide field, it has had special problems which it has taken longer to solve, but the prospect of higher permanent mail rates and lower operating expenses should result in a higher earnings pattern over the near future. This has been evident in 1954 results. Earnings are published on an annual basis only so there is no interim comparison with the 1.76 earned in 1953 of which 661 was in capital gains.Operating reve- .– nues-f'Gr; the- nLnemontBs -enEleEl September 30)954 -increased,l2e m-i-llion or 8 over the 1953 nine months, and operating expenses were up less than 10 million, or 6.8. This resulted in a 10.8 gain in net income, after taxes, for the nine months. It is difficult to estimate just what 1954 earnings will be because of the uncertainty regarding the amount of capital gains to be shown. However, 1954 earnings should be above 1953. As the company in the past has paid out around 50 of earnings in diVi- dends, it is possible that a year-end extra may be declared. The com- pany has declared 801 in dividends so far in 1954. Annual depreciation charges are expected to continue at 17-20 million (2.80 – 3.30 a share) annually for the next two or three years. Thus the cash flow earnings are around 5.00-5.75 a share,but company is refunding its debt over the next several years and a repayment of 11.6 million is due in 1954. These repayments will increase to 14.7 million in 1955 and 1956. These will be amply covered by depreciation charges. Pan i,merican has a book value of 17.06 as of December 31st,1953. At its current price it 'is selling at about book value. t, comparison with other airlines shows it is selling lower in relation to its book value than most other airlines. Price 195'3 Book Value – Pan J-.merican 17 '17 .06 hmerican Airlines 19 8.08 Capital 18 13.04 Eastern 36 24.07 Northwest 15 17.05 Trans-vlorld 25 15.62 United 35 27.53 Pan l.merican has progressive management as witness its recent in- auguration of a plan that sells trips and vacations on the installment plan. Its cargo operations have been showing excellent results. All in all, the stock appears to be in a position to discount the improving growth position of the company. EDMUND y,l. ThBELL IAlSTON & CO.

Walston &- Co. MEMBERS NEW 'fORK STOCK EXCHANGE AND OTHER LEADING STOCI( AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO iSw,tdd) OFFICES COAST TO COAST CONNECHC BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET LETTER In September of 1948, over six years ago, I issued a market letter that caused a bit of comment. ht that time, the Dow-Jones industrial averages were around 180 and the projections mentioned in the letter ap- peared quite fantastic to most observers. The final paragraphs of the letter follow. The 'fifth, or final advancing phase, will be an upsurge carry- ing into the middle 1950s. This will be the dynamic upswing with over-speculation and heavy public participation. The pattern is not complete as regards the ultimate price ob- – J e-ctivefor' this final- advancing -phase,-butthe-DowJones -.,., – – industrials should sell above the 1929 high of 386. A preli- minary objective, calculated from the long-term base patterns, suggests about 450 in the averages. The objectives of 250 for the present phase, and 450 for the ultimate advance, seem fantastic now, but only because of the present depressed mental state. Percentagewise, the advances are quite in line with the moves of the market over the past 60 years. It must be remembered that this country is still in a long-term upward growth channel. My prediction may eventually turn out to be quite conservative. On Friday, the Dow-Jones industrials sold at an intra-day high of 388.96 and surpassed the 1929 high of 386.10 and reached the first ob- jective of my long term forecast. However, as mentioned in the last paragraph of my 1948 letter, I may have been a bit conservative. I do not believe that the present advance is the final phase. The market has not yet reached the stage of over-speculation and heavy public participation. That stage will occur, if it does occur, at a later date and should carry the industrial average to at least 600. Over the nearer term, the present advance vlill most likely top out in the ,next few months in the 385-425 area. This will be followed by a lengthy consolidation period tor- a year 'or-two with the averages holding in – a broad trading area bounded by, roughly, 385-425 on the upside and 350-330 on the downside. After that another advanCing phase will occur. However, the action of individual issues is much more important than a general market average, particularly over the nearer term. In checking over my letters,I find that I have recommended quite a few issues over the past two years or more. Some of these have been eliminated by subsequent advice to take profits or switch into other situations but, nevertheless, the list is still quite sizeable and it might be wise to review all recommendations made Since early 1952 with the purpose of cutting down the list. Some have not worked out very well and it now appears advisable to SWitch into other situations with more favorable price appreciation potentialities.In most cases, however, the recommendations have followed the anticipated technical patterns and now show substantial profits. Some have already reached their indicated upside objective and may require a lengthy consolidation period before the advance is resumed.In capital appreciation accounts, it might be advisable to switch into other issues that still indicate higher levels. In any event, issues that have reached upside objectives hardly appear worthwhile candidtes for immediate purchase and will be eliminated from the list until a new pattern forms. A complete review of all issues recommended-since early 1952 -and not subsequently-eliminated, start-s below and will be completed in the next letter. ABBOTT LABORATORIES (44) has held in the 40-49 range since mid-1952 .,f \ I and appears to be building up a potential base area. The long term objective is 6o-70,but there is no indication of an immediate move. This good quality issue sold as high as 64 in 1952. 1.dvise retention and purchase for patient holding. ALLEGHANY CORP. (5) was recently recommended at 3 3/4.It is a specula- tive issue and should be bought only in long term capital appreciation accounts willing to exercise considerable patience.However,the long term objective is substantial with an indication of 11 followed by a later 17. Thh memorolndum II not to be construed 1111 offer or lollcitatlon of offln to buy or lei I IiIny s,(untles From time 10 me Whlon & Co. or an pu'n thereof mlly hlille an ,nt,relt ,n some or all of the M,u,ili mentioned h,rn The for,gOlng mlll,ri.' h41 bn-pr,pllred b.Ii UI as lit metier of in',rmll,ion onl, It I! blUed upon inlormolltoon belielted relible but not nec'''.tll, compl,t., is nol qUII'lIn',eel II' ,cur.t. or finel, and 11 not .ntended 10 loreclol. ,ndependenl IncIU''' — ..,.,., it -2- ALLEGHENY LUDLUM STEEL (42) was originally recommended in the 33-28 area. t has just broken out on the upside of the long 26-39 trading area in which it has held since mid-1952. The long term upside objective is 56-63. Would continue to hold and buy on minor price dips.There is now support at 39-37. ALLIED STORES (51) has been on my recommended list for a long time with an original recommendation at 38. The first objective appears to be 55-58 where there is some overhead supply. The longer term indication is above that level, but considerable consolidation may be needed first. A good income holding security with a higher price potential. ALLIS CHALMERS (72) originally entered my list in the 48-45 area. It re- cently reached a high of 74. Immediate objective is not clear, but would continue to hold for long term objective of 90. There is downside support at 67-65 where stock should be bought. AMERICAN -G-HAIN (38-)-has-reached cnewhigh territory ,at-38., The -long term— objective is 55-60. The nearer term objective is 39-43. The stock yields over 6 at present prices. There is downside support at 35-34. Continue to hold and buy on minor weakness. AMERICAN ENCAUSTIC TILING (12) This low-priced issue in the building field originally mentioned around 7. The long term objective is 17-19 so the stock still has a sizeable upside potential over the longer term.Continue to hold and buy on minor declines. AMERICAN NEviS (24) The downside breakout of the long 37-29 trading area was bearish and indicated lower levels. This has possibly been the worst acting issue in our recommended list. If not sold in the downside break- out, would continue to hold as the potential base formed indicates a possible return to the 29-31 level. Would sell 1n that area. AMERICAN POTASH & CHEMICAL (65) was first mentioned in my letter at an equivalent price of 40. (The stock was ex-dividend 10 stock on Friday. The high before the dividend was 73). The stock dividend obscures the immediate pattern but the stock should be held and bought on all minor price declines as the longer term objective is 108-118. AMERICAN RADIATOR & STANDARD SANITARY (23) has had a sharp price rise,but still indicates higher levels particularly over the longer term. The up- side penetration of the eight-year old base at 12-17 indicates 27 followed by –a- long -term40. RecerJ.-t- high was 24.-Hold- andb1iy-on -minor crecl-ines-. AMERICAN SEATING (31) has been in a slow uptrend. Most likely this trend will continue but for long term growth would prefer Hooker Electro-Chemical or Victor Chemical and advise switching into either of these issues. AMERICAN TELEPHONE & TELEGRAPH (175) still yields slightly over 5 and I conSider it an excellent purchase where income and safety of dividend payments is the prime consideration. The intermediate objective was 171- 179 and the longer term objective is 200. AMERICAN VISCOSE (43) has broken out on the upside of the 31-39 base area. The upside potential is 52-57. Would continue to hold,but would be inclined to sell into the above mentioned areaas there is heavy overhead supply at 58 and above. . ARMSTRONG CORK (92) wa originally recommended around the 50 level. The upside potential is 95-100. This area has almost been reached. Other situa- tions appear to offer better profit opportunities and the stock is being dropped from my recommended list. ASSCCIATED DRY GOODS (28) is a recent recommendation. The long term pat- tern is not clear, but the stock has an intermediate term objective of 33-35 BABCOCK & WILCOX (71) has been on my recommended list for a long time Since its original recommendation in the 35-33 area. At present price levels it is qu.ite-close to its -upside ob.jective -of 75-80aml further profitc-poten- tials appear limited. Combustion Engineering (55) offers a better capital appreciation prospect and a switch into that issue is recommended. BALTIMORE & OHIO (32) has an attractive technical pattern. Ability to pene- trate the 1953 high of 30 indicates an upside potential of 43 over the in- termediate term. Would continue to hold and buy on minor price declines. There is support at 30-28. BEAUNIT MILLS (22) has been showing mediocre price action until recently, but the ability to break out of the 14-22 area now indicates 27 followed by 31. Would continue to hold. BELL & HOltJELL (27) is showing improving action. The intermediate term pat- tern suggests 35-37 with an even more favorable potential indicated over the longer term. Hold and buy on minor declines. EDMUND vi. TABELL vlAlSTON & CO.

Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swawlood) OFFICES COAST TO COAST CONNECTEIj BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER December 3, 1954 The industrial average reached a newall-time high at 391.21 on Tuesday, reacted to 381.81 on Wednesday and was back to 391.74 on Friday. This is more or less the usual seasonal pattern with irregularity in the early part of December and strength in the later part of the month. I believe there is a good chance that the market will have a similar price pattern this year. On my technical work, the market appears to have gene- rated enough upside momentum to work higher into the early months of 1955 with a possible price objective of around 425. In the event of near term irregularity, there is support at 380-375. However, as I have continually mentioned, the technical action of individual issues is much more impor- tant than that of averages. Below is, a continuation of the review of issues mentioned in my letters over the past two years or so. The analysis is based on the technical action of the graphs of each individual issue. These recommendations, as always, are based on longer term holding and not for shorter term movements. ' BLACK & DECKER (50) was originally recommended at 39. The long term ob- jective is 70-80. Over the intermediate term, the objective appears to be 55-60. There is support at 47-45. Buy on all minor declines. BLAW-KNOX (29) has been -in a slow uptrend from the 1953 low of 16. The initial objective is 30-35 followed by a long term 45-50. A very strong long term pattern. Buy on all minor price declines. BORG WARNER (104) was originally recommended at the 70 level. It has reach- ed the intermediate term objective of 100105 at the recent high of 106. The longer term objective is probably 135-145. There is downside support at 92-90 where the stock should be bought. Intermediate term holders might take profits on further strength. Long term holders should await longer term objective. BUCYRUS ERIE (33) has moved up to 33 from the 22-23 recommended level.Its nearer term objective is 36-38 followed by a possible 42-44. There is down- side ,support at 31-29. BURROUGHS CORP. (24) has long been a part of my recommended list. It has advanced slowly from 17-15 to the recent high of 25. Stock does not move rapidly, but there is an upside objective of 35-37. CALIFORNIA FACKING (33) has worked up from the 26-25 recommended area to 33 which is its first objective and where there is some overhead supply. However, the issue appears capable of reaching its next objective' of 40. I would continue to hold, but some patience may be required., CANADIAN BREilING (26) was originally recommended at 19 ith an upside ob- jective of 27 followed by a longer term 37. The first objective was reach- ed earlier this year and the stock has held in the 27-25 area. For those with patience, would advise holding for the longer term objective. CELANESE (23) was badly timed for purchase. My work indicated that the downside objective was either 37-31 or 19 and I thought the stock would hold at its first downside objective. However, the stock appears to be forming an accumulation base in the broad 17-24 area with an upside poten- tial of 31-34. Would continue to hold and buy on minor price declines. CELOTEX CORP. (25) was first mentioned at around the 20 level. It has broken out of the long 14-21 accumulation base and indicates 29-31 follow- ed by a longer term 38. Recent high was 26. There is support at 24-22. CERTAIN-TEED (24) originally came into the listat 15. 'It has broken out of the long 10-20 range in which it held for over seven yarsto reach a high of 25. The initial upside objective is 28-29 followea by a longer term 41. Would continue to hold and buy on minor price declines. CHAIN BELT (40) is a better grade issue with a good yield and indicates considerably higher levels over the longer term. Its price action has been slow so far, but the,intermediate term objective is 65 followed by a longer term objective of 80. CHICAGO & EASTERN ILLINOIS (19)- appears to be building up a potentially – strong pattern in the broad 12-23 range. The upside potential is 32 fol- lowed by higher levels, but considerable patience may be needed before these objectives are achieved. CraHnICgAeGOad GREAT now WESTERN has an u (35) pside has broken out of the long 17-28 accumulation objective of 37 followed by 47-50. There is downside support at 29-30. Th.s memoralldum is nol to btt construed .. an oH., or ,ol'c.lation of oHIf' to buy or s,lI an., tCUrl'. From t,m. 10 time WlIlston & Co. or any Jl!.rtfl.r III.reol, ,.y httye 1111'1 .nternt H. some or aU of Ihe loeuI,H mentioned hlrein. the 10'9'9 trWt.,ial h., IM.n preJNId UI III ., m.tt., of .n',mahon onl., It Ii b,ned upon ,nlo,m,o belteved rehbl. but not nKtI5H1rll., compl,te, II not qua,ant.ed K. or finel. and 11 n. Intended 10 foreclo'e Indep,nd.nt ,nqulTY —- -2- . CHICAGO, ROCK ISLAND & PACIFlC (84) was recommended at the 66-64 level.It has broken out of the broad 60-76 re-accumulation area and has an intermediate term objective of 90-100 followed by a longer term 125-130. Buy on minor declines. Recent high was 85. There is support at 80-76. CITIES SERVICE (125)is a relatively recent addition to the list at 95. It has a very strong technical pattern and ,indicates an intermediate term 140-150 followed by a higher longer term objective. Ability to penetrate the 1951 high of 120 is very encouraging. Stock should be bought on all minor price declines. CITY FRODUCTS (36) was recommended as an investment holding for income (6.8 yield) and long term price appreciation. The stock has an interesting upside potential. Purchase is advised for patient incGme holders. CLIMAX MOLYBDENUM (55) was originally mentioned at the 35-30 level. The recent breakout of the 49-56 re-accumulation range has a projection of 62-68. Would be inclined to sellon strength into that area. COLGATE-PALMOLIVE (60) is another recent recommendation. The recent high was 63. While the intermediate term pattern suggests only 60-70, the longer term pattern is strong. Would suggest purchase on minor price declines. There is support in the 57-55 area. COLLINS & AIKMP.N (17) has done little marketwise for a long time. The technical pattern suggests no dynamic move and I would switch into other issues with more interesting upside potentials. COLUMBIA BROADCASTING (80)has long been a part of my list and was originally mentioned in the 33-30 zone. The recent high was 85 before the 2t stock dividend. The long term price objective appears to be around 100. Time may be required to form a new near term pattern. There is support at 75-70. COLUMBIA GAS (15) was recommended for yield and long term capital appreciation. Would continue to hold on that baSis. Longer term objective is 19-20. COLUMBIA PICTURES (31) was originally mentioned in 14-15 area. The upside penetration of the 8-15 trading area indicated an objective of 35. The recent high was 33. Numerous stock dividends have been paid and at present levels it would appear that the stock has reached its objective. Would switch into other issues with more interesting upside potentials. COMBUSTION ENGINEERING '(57) was recommended at 45. It has held in the 48-58 area since earlier in the year. An upside penetration would indicate 68-72. The long term objective is 80; Continue to hold and buy on minor declines. CONSOLIDATED NATURAL GAS (70) was mentioned in the 50-55 area. The long term pattern continues favorable with an objective of 80-90 followed by a higher long term objective. Continue to hold. CONTINENTAL MOTORS (10) was recently recommended as a long term speculation. The stock has done nothing marketwise for a long period of time.There is heavy overhead supply at 11-12 that may take time to penetrate, but there is very little suply between 12 and 18. Buy for patient holding only. CORN PRODUCTS (90) has an intermediate term potential of 95 followed by a long term 115. The stock moves slowly but is of good investment quality. There is downside support at 85. CORNELL DUBILIER (34) originally entered my list at 22-21. The long term objective is 41. Would hold for that potential. CRANE CO. (38) has been in my list for a long time. It is now near the upper part of the long 26-42 range in which it has held for over three years. Would be inclined to sell in hope of buying back again in the lower portion of the long trading area. DECCA RECORDS (17) reached its initial objective at the recent high of 18. The long term objective is 25, but more time may be needed for consolidation before the longer term objective is reached. DENVER, RIO GRANDE & WESTERN (96) was originally recommended at 46 on the basis of the present stock. The three-for-two split has distorted the technical pattern somewhat, but the stock still remains in a long term uptrend. The objective is not clear. DE VILBISS (24) was recommended as an income issue with long term appreciation prospects. Has recently reached new high territory. Objective is 27 followed by a long term 34. DOME MINES (17) has been a very disappointing recommendation. See no signs of an immediate move. vlould switch into other issues. EDMUND 11. TABELL WALSTON & CO.

IF,.;)'.. , Walston &- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw;twl..d) OFFICES COAST TO COAST CO'lNECTEC BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER December 10,1954 Both averages reached new high territory during the week with the Dow-Jones Industrials at 395 . 67 and the rails at 137.90. My intermediate term technical indicator, which has been in overbought territory for some time, gave a sell signal at Hednesday's close but, in my opinion, this is not an important signal at this stage of the market. It may result in the usual seasonal irregularity which is common at this time of tye year.There is support at 385-380 in the industrials and 135-132 in the rail average. From the present technical action it would appear that a buy signal will again be given later in the month at a price level not too far away from present prices. I believe the market has enough momentum to carry forward , rails'tofhe -425 level fi1the-industri'al'sanci-1'50-155' ih the'- during il1e – , early months of 1955 with speculative issues leading the advance. DOVI CHEMICAL (44) is my first choice for a long term growth issue. No im- mediate price action of importance is indicated, but the long term trend is very favorable. Vlould hold and add to holdings at the originally recommended level in the 40-38 zone. DRESSER INDUSTRIES (35) is a comparatively recent addition to my recommended list. It has pushed through the heavy reSistance in the 30-33 area. The intermediate objective is 40-45 followed by a long term 60-70. There is downside support at 33-31. Hold and buy on minor price declines. EAGLE PICHER (28) originally entered the list in the 22 area. At the recent high of 29, the stock had almost reached the 1946 high of 30. Long term pattern is favorable and would continue to hold for higher levels. EASTERN AIRLINES (39) has advanced sharply from its originally recommended level of 23. The long term objective is 41. At the recent high of 40, this objective has almost been reached and some consolidation may be needed. Vlould switch into Pan American World Airways which appears to be behind the market. EASTMAN KODAK (69) was originally recommended at 43. The recent high was 72. The stock has reached its intermedte term objective, but the long term' pattern stil'lndicateE -higherlev'ets;However -scinie-cOOscllida't-ion ' may be needed and would be inclined to take profits on further strength. ELECTRIC AUTOLITE (37) has been one of the poorer acting issues in the list. There is overhead supply at 40-45 and I would be inclined to switch into other issues with more favorable capital appreciation prospects. ELLIOTT CO. (26) has been a poor performer and has done little marketwise during the general market advance. There is no indication of any immediate move, but the long term pattern is still favorable and I would consel retention for patient 'holders. EL PASO NATURAL GAS (39) has a favorable long term pattern, but there is no important immediate indication. Hould be inclined to transfer into issues with more pronounced upside potentials. FANSTEEL METALLURGICAL (27) has a very interesting technical pattern.It held in the 21-,26 area from mid-1953 until recently. The upside penetration indicates 31-33 forthe intermediate term followed by a higher long term objective. Purchase is advised. FERRO CORP. (31) is nearing the 32-35 overhead resistance and some consolidation may be needed. Vlould take profits and switch into issues with a better upside potential. FLINTKOTE (40) has roken out on the upBide of the long 33-22 accumulation area. The intermediate term objective is 45-50, followed by a higher long term indication. Hould hold and buy on minor declines. There is'sup- port at 37-35. FRUEHAUF TRAILER (34) has broken out of the 22-27 accumulation area and has reached a high of 35. The objective is 41-43. \IIould hold until that level is reached. GARRETT CORP. (36) reached its upside objective at the 1954 high of 41. Iould take profits on strength. c lengtr.y consolidation area appears needed. GENERAL MILLS (74) is a recent addition to the list. It was recommended early in November at 69 and has reached a high of 78. This is an investment issue for long term holding. The long term objective is 90-105.There is downside support at 70-68 where additional purchases should be made. r. './' . — '''-7'' '',.. r..,,,,…,,1! II IP' 1,,''' ,'9,. 'WI' ''ll , -2- GENERAL RAILWAY SIGNAL (39) reached its intermediate term objective at the recent high of 41. While higher levels are indicated over the longer term,some consolidation may be needed first. Would take profits on strength. GLIDDEN CO. -(42) originally entered the list in the 34-33 range. The long term pattern suggests higher price levels, but there is heavy overhead supply at 42-46 that may slow action. Would take profits. GRAY MFG. (14) has done little marketwise recently. It appears to be building up a slow accumulation area in the 13-16 range and it would appear that a return to the 20-21 area is a possibility. hbility to move above the 1953 high of 21 would indicate substantially higher levels. GREAT NORTHERN RAILWAY (34) has broken out of the long 23-29 accumulation area and indicates an advance to the 40-47 area. Buy on minor price declines. There is support at 33-31. GREER HYDRAULICS (17) This stock has done little marketwise for a long time. While there is no indication of an immediate move, a strong tech- nical pattern appears to be forming in the 16-19 area. An upside penetration would 0 indicate 28- 33. An interesting-specul-a'tion o– – – – – GULF, MOBILE & OHIO (35) The upside penetration of the 27-31 base indi- cated a possible advance to 40-45. A high of 35 was reached in August, but the overhead supply at 35-37 held back a further advance. Enough consolidation has occurred to warrant the belief that the stock will push through the supply to reach the indicated objective. Would continue to hold. HALL PRINTING (19) Would continue to hold for generous yield (7.3) and slow long term price appreciation. HERCULES MOTORS (18) is an interesting speculation. The stock has held in the broad 14-23 area since late 1946. Patience may be required, but an upside breakout would indicate substantially higher levels. At the 1953 year-end, the stock had a book value of over 35 a share and working capital of 26 a share. HERSHEY CHOCOLATE (40) has held in the 38-44 area Since 1951. An upside penetration would indicate considerably higher levels. Recommended for long term 'wIding in investment accounts. HEWITT ROBINS (33) The upside penetration of the long 14-29 range indicates an advance to the 50-60 level. Patience may be required, but the stock has a strong technical pattern. Hold and buy on minor dips. There is support at 30. . HOOKER ELECTROCHEMICAL (28) This recently split stock is in a slow uptrend channel. The initial objective is- 32-34 foIl-owed –by a long term–4-0; An -. attractive purchase. There is support at 28-26. IDAHO POVIER (53) is an interesting growth utility. While mJst utilities have reached their upside objectives and appear in need of consolidation, Idaho Fower still has an objective of 68. Recent high was 57. There is downSide support at 50-49. – INDUSTRIAL RAYON (49) has broken out of the 39-45 accumulat.ion area with an upside objective of 58-63. Recent high was 52. Buy on moderate price declines. There is support at 47-45. INTERCHEMICAL CORP. (38) was first mentioned in the letter in the 20 area. It reached its intermediate term objective at the recent high of 40. How- ever, the longer term objective appears to be 48-53 so I would continue to hold. INTERNATIONAL TEL & TEL (25) has reached its first objective at the re- cent high of 26, but would continue to hold as the next objective of 31 appears likely to be reached. JAEGER Mt.CHINE (28) is another recent recommendation. The stock has broken out of the long 19-26 range in which it has held since 1951. The upside objective is 34 followed by a later 42. Buy on moderate declines.There is support at 28-26. JOHNS MANVILLE (86) recently reached a high of 91. The long term objective is 95-105. Would sell on strength into that area. – – -,- JOY MANUFACTURING (40) has shown improving price action recently.The stOck has held in the broad 25-43 area since 1948. An upside penetration would indicate substantially higher levels. Ability to reach 41 would be ini- tially constructive. KENNECOTT COPPER (9'71 entered the list at 63. The upside objective appears to be around 110. WOUld continue to hold and buy on declines. There is support at 90-85. LEES (JAMES T.) (30) has reached a -new high at 30. Would continue to hold. The initial upside objective is 35-37 followed by a possible higher ob- jective at a later date. – LEHMAN CORP. (45) is in slow uptrend.lnitial objective is 46-48,but longer term pattern suggests an even higher level. Would continue to hold. LION OIL (47) haspushed through the heavy supply at 41-46. Intermediate term ObJective appears to be 55-60. Continue to hold and buy on minor price declines. EDMUND W.TABELL WALSTON & CO. – , ,- .

, ,' I Walston &Co. — MEMBERS NEW YORK STOCI( EXCHANGe AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw,Id) ,OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER December 17, 1954 After declining to lows of 385.03 on the industrials and 134.36 on the rails, the market rebounded sharply in the final part of the week. The rail average led the advance and decisively penetrated the previous high of 137.90 to reach a new high at 143.38 . The industrials, at the week's high of 396.34 , just about equalled last week's high of 395.67. There may be some further irregularity before the year-end, but I would expect a continuation of the advance to the 425 level in the industrials and to the 150-155 level in the rails in early 1955. LONE STAR CEMENT (58) has reached all upside objectives at the recent high of 64 and has advanced sharplyJrom its originally recommended level of 0 28. Time may be needed to form a-new pattern. On strengTh,-'woUld switch .,. ' into other issues with better appreciation prospects. LOUISVILLE & NASlNILLE (86) recently reached a high of 86. The upside potential appears to be 88-90. Would take profits in that area. LOWENSTEIN & SONS (44) has been one of the better acting textile issues. It originally -entered my list in the 28-30 area. The eventual upside ob- jective is 55-60. I would continue to hold and buy on minor price declines. MASONITE CORP. (25) has shown improving action recently after a poor performance since 1951. It has pushed through considerable upside resistance to reach a recant high of 27. The immediate pattern is not clear, but a constructive pattern appears to be forming and retention is advised. MERCK & CO. (20) is a recent addition to the list. The stock appears to be building up a strong potential base in the 17-22 area. An upside penetration would indicate 26 followed by 34. Stock appears to be a purchase at around present levels. MINNEAPOLIS, ST. PAUL & SLT. STE. MARIE (16) Soo Line has been a very poor recommendation. It has formed a small base but there is heavy overhead resistance at 17-19 and I believe it advisable to sell or strength and transfer funds into issues with a better upside potential. MINNESOTl, POWER & LIGHT ( 23JJhestockisinaslow\'\Iltrend channel. No immediate move is indicated but stock can 'be bought'for'above 'average – – utility yield. MISSOURI-KANSAS-TEXAS,PFD. (72) entered the list at 55. It has shown very little price action recently, but the technical pattern is very strong. The intermediate term indication is 85-90 followed by a longer term 104. There is suport at 70-67. Hold and buy on minor declines. MONSANTO CHEMICAL (103) is another recent recommendation at 93. The intermediate term indication appears to be 120 followed by a higher long term potential. \ould continue to hold. MONTANA POVIER (38) has recently held in the 35-38 range. An upside pene- tration would indicate a possible further advance to the 43 level. Would continue to hold. MONTGOMERY WARD (77) has been on my 11st for quite some time. The pro- – jected intermediate term objective appears to be 85-90 with higher potentials over the longer term. Would continue to hold. MULLINS MFG. (23)iS another recent recommendation. It has done little marketwise for quite some time, but appears to be slowly forming a strong technical pattern. Ability to reach 26 would be constructive and indicate an intermediate term 34-38. There is some suppl at 26-29 that may temporarily slow the potential advance. NATIONAL AIRLINES (22) was recentlyrecommended at19. It-has moved up to a high of 23 but the upside potential appears to be 27-30. Would continue to hold. NATIONAL GYPSUM (47) entered the list in the 20-22 area. It recently reached a high of 49. The upside potential appears to be 50-55 so I would advise taking profits on further strength. NEW YORK AIR BRAKE (25) until recently was one of my most disappointing recommendations. However, it recen,tly has broken out of the broad 13-23 range in which it has held for eight years to reach a high of 27. The initial objective appears to be 29-34 followed by a higher projection over the longer term. Would continue to hold and buy in the 23-22 support level. Thl memorllftdum is not to be construed oil an offer or sol.clt.tion of oH,., to bur or II ,n, ncur.tics FrOiTl tim. to time W4lhton & Co i lff, …r ftllrtner t fh.rlo!. may hlit..!! an 'nl,r, ,n lome or all CIt the ,curie, mentioned h.in Th, for.qo,; m4lterial h.u baell prepa,ed b' I at 41 matte' 0 III 'I,ma Oil o 'I or It b..d UPOII ;1I'Ot'411ooli believed rehable by! 1I0t lIecena'lly complete, If 1I0t ;yatallteed as accu'at, or filial, and 1I0t ,nt,nd,d to Imedole Ind,p,nd, '''Ciu Y – -' r -2- NEVI YORK CENTRAL (30) was recently recommended in the 20-21 area. The intermediate term objective appears to be 35-39 with higher levels projected over the longer term. The 28-27 area should furnish support. Hold and buy on minor price declines. NEVI YORK, CHIChGO & ST. LOUIS (48) has rallied to 48 and is in its up- side objective zone at 46-52. Vlould be inclined to take profits on further strength and switch into issues with better appreciation prospects. NORTHERN PACIFIC (71) was recently recommended at 59. The upside penetration of the year-old 52-64 area was very constructive and breaks the downtrend from the 1952 high of 94. There is some overhead supply that may slow action but the long term potential is 95-105. NORTHVIEST AIRLINES (16) At the recent high of 17 was near the overhead resistance at 18-21. ould switch commitments into Pan c.merican World Airways. OTIS ELEVATOR (68) entered the list at 39. It has reached its intermediate term objective of 67-7SJ,. but the longterm obtectie is80-90. Would continue to hold and buy- in the 62-60 support level – – OI.JENS ILLINOIS GLASS (98) reached a recent high of 101. The intermediate term objective is 108-112 but the long term potential is very impressive. vlould continue to hold. PAN AMERICAN WORLD AIRVIAYS (18) continues to be my favorite airline selection. There is some minor supply at 21-23 but 26-30 appears to be the intermediate term indication followed by 35-40 for the long term. Would switch other airlines into Pan merican. PARAMOUNT PICTURES (36) has been in my list for a long time. It was originally mentioned at 23, The intermediate term objective is the 41-48 zone. Continue to hold and buy on minor price declines. PARKE DAVIS (36) is forming a similar pattern to the other ethical drugs. It has broken out of the long 31-37 range to reach a high of 38. There is some overhead supply at 42-46 that may slow action, but the ultimate objective appears to be 50-52. PENICK & FORD (46) is another recent recommendation. ThiS better grade issue moves slowly but it has an ultimate objective of 63-72. Buy on minor price declines. PENN-DIXIE CEMENT (78) was originally recommended in the 34-33 range. Its upside objective was 73-80 and this was reached at the recent high of 80. Time may be needed to form a new pattern and would take profits arid switch-into issues With-ii-more iniinediate–upside poteiit1al-.———- PENNSYLVANIA SALT (50) has done little marketwise but the upside pene- tration of 41-46 accumulation area indicates 59-65. The 1951 high was 71. Vlould continue to hold and buy in the 48-45 support zone. FFIZER (CHAS.) & CO.(35) appears to be slowly forming a strong accu- muation pattern. Ability to reach 39 would be constructive and indicate a longer term 55-60. PILLSBURY MILLS (53) originally entered the list at 35. Its technical action has been good. Vlould continue to hold. The long term indication is 60-70. PITTSTON COMPANY (30) has a rather irregular pattern, but the upside potential is quite substantial. There is overhead supply at 30-32 that appears to be slowing the advance but would continue to hold. PUBLIC SERVICE OF COLORADO (44) appears to have reached its first upside objective at the recent high of 46. Time may be required to form a new pattern. Vlould switch into Idaho Power or Montana Power. PULLMAN CORP. (64) has moved up to a high of 66 from the recommended level of 51. Vlould continue to hold as the intermediate term objective is 70 and the long term objective is 85. RADIO CORP. (38) entered the list at 22. The upside objective is 43, which could be, reached early in 1955 followed by the formation .of a new pattern. Vlould sellon strength. RAYBESTOS-MANEATTAN (50)has broken out of the broad 368 range to reach a high of 53. The objective is 80-90. Continue to hold and buy on the 48-46 support area. RAYTHEON MFG. (18) has a very strong technical pattern and indicates a possible 30-35. There is some overhead supply at 19-23, but would continue to hold and buy on moderate price declines. REFUBLIC STEEL (72) has advanced nicely from its recommended level of 52. The upside potential is 72-78. There is also a possible 84 in the pattern. Would sellon strength. ROBERTSHAW-FULTON (32) was originally rec,ommended at 21. The upside objective is 40-45. Continue to hold and buy on minor price declines.There is s-Jpport at 30-28. EDMUND W. Tf.,BELL WALSTON & CO.