Walston &Co. Inc t.4EMBE-RS NEw YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO Sw,,,.d.,d I OFHCES COAST TO COAST BY PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 2, 1956 President Eisenhower's decision was followed by a sharp increase in volume and heavy profit-taking by short term traders with the result that the averages were unable to decisively penetrate the overhead resistance around 490 in the Dow-Jones industrial average and 165-168 in the rails. Ability to penetrate the heavy overhead resistance would be a favorable technical development and would indicate the probability of a further advance to the 525-530 level. The upside potential on the rail average is not quite as clear. As mentioned many times before in this letter, I consider the action of individual issues of muchmore importance thanthanQf the- averages There'are a considera1ile -number orl13sues- snowirig reasonaole price action regardless of the averages. In checking over my recommended list, I find that nine of the thirty- six issues all have about the same characteristics of (1) an above average yield when quality is considered, (2) defensive patterns with a seemingly relatively small downside potential,and (3), attractive long term apprecia- tion prospects. I have therefore decidedw separate them from the remainder of the list and review them separately as Income and Long Term Appreciation recommendations. The nine are- Approx. Indicated Price Dividend Yield Allied Stores American Can American Chain Associated Dry Goods Coca Cola Hall Printing Raybestos-Manhattan United Fruit Western Auto Supply 41 32 131 22 55 54 33 3.00 2.00 2.50 1.80 5.00 1.40 3.40 3.00 1.60 5.7 4.3 6.1 5.6 3.8 6.4 6.2 5.5 4.8 lL . for purcohase at .preseQt . —– The balance of my recommended list, which will be named the Long Term Capital Appreciation list, will be reviewed in next week's letter. In the meantime, I am adding three issues reviewed below; namely, BUTLER BROS. (22 3,4) MASONITE CORP.( 41) and WESTINGHOUSE AIR BRAKE (32 5/8). These last two will be reviewed in subsequent bulletins together with CHICAGO CORP.( 24 3/4) and FOOD MACHINERY ( 58 1/4)which were added during the January decline. At this time, I am also eliminating Celanese Corp.(20 1/8).It has been showing below average price action and should be switched into recommended issues. BUTLER BROS. appears to be an interesting vehicle for longer term capital appreciation. Most of the company's real estate holdings were recently spun off as Canal-Randolph Corporation which is now selling at around 6. New management is in control of Butler Bros. and, if present contemplated plans work out, over the next several months the company should have cash of about 19-20 a share plus an earning power of 2.00 to 2.50 from the Ben Franklin Stores division and other smaller units. Present dividend rate is 35/ quarterly so the stock offers a yield of 6.1. Eventually, management expects to invest the expected 19-20 a share of cash in a manner which should .wQrk out to the stockholders. stock appears an interesting price speculation over a period pf time. The technical pattern, while somewhat distorted by the recent spin-off of Canal-Randolph Corp., shows the potential of a sizeable per- pentage advance. EDMUND W. TABELL WALSTON & CO. INC

Walston &Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwHml ..d) OfFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER March 5, 1956 The major cause of near-term stock market uncertainty has now been re- by President Eisenhower's decision to seek re-election and market ana- lysis can now return to the more basic elements of earnings, dividends and money rates in appraising the future outlook for security prices. This does not imply that all chance of a change in the high investor confidence pre- vailing today has been removed. The charges and counter charges of a poli- tical campaign and the still uneasy foreign situation are still with us, but none of these elements seem to have the potential of lowering investor con- fidence that a refusal to run for re-election by the President would have had. The factor of investor confidence has been possibly the most important element in the present general level of stock prices. Our oft quoted Central Value Line of Ben Graham now stands at about 410 in the Dow-Jones industrial average. At the present actual level of around 490, the market is at maximum valuation of 20 above normal allowed for in a period of high investor confi- dence. A further sharp rise in the industrial average would place the market at a rather high level in relation to this historical indicator despite the fact that Central Value is slowly rising and should reach the 500 level by 1959 even if the earnings on the industrial average just remain more or less stationary over the next four years. Obviously, this is an extremely conser- vative earnings projection. It is expected that earnings should increase substantially over the next four years. – Consensus of opinion on the business outlook for 1956 appears to envi- sage an average level for the entire year of around 140 in the F.R.B. Index of Industrial Production, as compared with 144 at the latest reading. Of course, it is expected that the index will move above and below the average at various times of the year, but the entire 1956 picture should not show much change from that now prevailing. This would also seem to indicate not change in the 36.50 earnings on the industrial average estimated for 1955. Dividends may increase somewhat, however, as the 1955 payout rate a bit below average. If the business and earnings pattern works out as an- ticipated, it would seem that the industrial average has little reason to very far in either direction, provided investor confidence remains close to the present high level. The technical pattern appears to bear out the above conclusion.Since the early part of 1955, the volume on the New York Stock Exchange on a 25- week moving total basis has shown a slow but steady decline. This decline in total volume has been brought about almost entirely by a decrease in up- side volume. This action implies that the investor has become increaSingly cautious as the market advanced and his buying interest has declined. As a result, there has been extremely diverse market action with just as many issues declining as advancing and with a smaller number of individual issues reaching new highs despite a rise in the averages. This same pat- tern prevailed in both 1946 and in 1951-1953. The basic difference between the two patterns was that in 1946 the downside volume started to increase ffter a few months and finally reached new high territory. This did not rappen inthe 1951-1953 marketj'buying interest waned but selling pressure rever reached new highs. The thing has happened so far in the present which leads to the conclUSion that the market may follow the 1951 1953 pattern of a long consolidating phase with diverse action by indivi- issues. This phase could last for six months or a year longer and be followed by a broad extension of the advance. As I outlined in my 1956 forecast, it is probable that the industrial will again contact the uptrend line connecting the July high of the September high of 489.94. This uptrend line will be around 525-535 level during the month of March. When this is reached it is possible that the market will have reached its high for quite some time. This high should be followed by a broad trading range between approximately 530 and 450 in preparation for the next long term advancing phase. EDMUND W. TABELL WALSTON & CO.INC. Th memorandum is not 10 be construed as an offer or , soliCitation 'ff 0 0 et' to b uy or se II 'fly SteUf. t !fll From medtobliImae Ws aaldomnat&terCooi oInrfoarmnyollptlolnrlnoenr lythtrIetofIS, bet ,m!lY have 'In mterest In some or at' of the seCUrities mentioned herem The foregOing maler,,1 hH to foredole .ndependent mqulry based upon Information behe … ed retl1bte but not neteUoIInty complete, IS not gU1ranteed 0111 accuroll e or Ina, an n

.. r, Walst.on 8- Co. Inc MEMBERS NEw YORK STOCK EXCHA.NGE ANO OTHER lEADING STOCK ANO COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISwa..,Id) OFFICES COAST TO COAST CO …. NECTEt BY OIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER March 9, 1956 With investor confidence at least temporarily restored by the Presi- dent's decision to run for a second term the market, as measured by the Dow-Jones Industrials broke into new high territory, reaching 499.09 on Friday. indicated in last week's letter, the ability to penetrate the overhead indicates the possibility of a further rise to the 525-530 area. i.s this lettl' has repeatedly emphasized, however, it is pointless to talk about the averages. The market will continue to be dominated by th action of individual stocks and groups. It is entirely possible to visual- ize certain stocks doing little or nothing while the averages move ahead and other stocks acting strong while the market, as measured by the aver- ages, declines. As an example of this type of action, it is only necessary to look at the action of the market since February 29th, the day of the President' announcement. In this period, th the averages up about 16.00, General Motors has been unable to gain a point while Dresser Industries, to draw an example from our recommended list, closed today at 62 1/2 versus a February 29th close of 56 5/8. Repeated below is my recommended list, showing technical objectives and support levels for each issue. These issues would be eligible for pur- chase at or around the support levels mentioned, regardless of the action of the market. ;'.s mentioned in last week's letter, the primary objectivE of issues in this list will be long-term capital appreciation. My income- .defensive list was reviewed in last week's letter – Present Price Price Recom. Yield i.dvice Alleghany Corp. Allegheny Ludlum hmer.Potash B 9 35 116 Barber Oil 61 Black & Decker 39 Butler Bros. 24 Calgary & Edmonton 28 Chain Belt 65 Chicago Corp. 25 Cities &ervice 62 Co l g a t e – F a l m . 60 Cornell Dubilier 40 Cutler-Hammer 89 Dow Ohemical 68 Dresser Ind. 62 Eagle Picher 42 Food Machinery 62 Gen'l Rwy.Signal, 71 Hewitt-Robins Joy Mfg. 43 42 Masonite 40 Monsanto Chern. 48 Mont.Dakota Util. 27 Pacific Petrol. 16 Pan ..c.mer. vi orld 20 Simmons Co. 50 Sinclair Oil 62 Westinghouse Yale & Towne B 33 69 Magma Copper 131 3 3/4 16-15 40 59 19 23 16 30-35 24 38 6c 21-22 57 38-40 33 22 51 59 25-30 23 41 31 26 11 – 11-13 36 46 33 45 75 4.6 2.2 4.1 2.6 5.8 0.4 4.6 4.0 3.9 5.0 5.3 4.C 1.5 4.05 4.3 3.2 4.2 4.7 4.4 4.3 2.1 3-.7 4.0 6.0 4.8 3.6 4.3 Objective 12-17.Support 8-7. Objective r5.Support at Object.120-15C.Support 105-10C. Object.80-115.Support 6c-59. at 32-30. Hold for long-term growth. Buy for long term speculation. Object.78.0upport at 56-54. Object. 44. Support 23-20. Object.81.Support at 58-56. Object.10C.Support at 56-54. Object.54.Support at 36-34. Object.120-140.Support at 80-70. Hold for growth.Support 60-50. Object.85.Support at 54-50- at 38-37 Object.76-87.Support 55-53. Object.14o-150.Support 65-62. Object.85.Support at 39-37. Object.75.Support at 38-36. Objective 86.Support 39-37. Hold for growth.Support 42-40. Object.45-60.Support at 25-24. Buy as long term speculation. Object.27-45.Support at 19-17. at 49-47. Object.65-89.Support at 58-56. Objective 45.Support 29-27 Object.105.Support at 67-65. Object.200.Support 115-11e. r.I'JT/amb EDMUND 1,/. TJ,BELL 1'I;,LS1'ON & CO.INC. Th'… ma.rket letter 1 not. and no Clteum'lt.ances ' to be- eonatrued as, aD offer to or …ohcltatlon to buy -ny to herem The Inf….rmallon- COT herein 1.. not Ituarant.eed as to aecurary or ernnplet.enem and the (Ilrnist'llnlt thereof 15 not. and under no ClI'cumstanee!l 19 to &s. a repreentatlOn by Wal'\t,un & ('0. Inr. AU eltpre!l!llOn!'l of OtHnian are to ehanae Wlthout Wal.Jton A Co., Inc, or any QfflCer, Dlreetl)r or StDekholder thereof mka,. hnve fln IntRre't In the mentioned herem This mullet letter is intended …nd presented merely M lleneraI, In(ormal commentary on day to day JN,r news Ilnd nutl. a analYSIS. AddttJo1'l.al InIormatlOn With rnpeet to referred to herein WlII be !urnlshed upon request. ' —- ——- ——-

'f'J'''I'.'I!''''JP!,I7-' ''''''''''''!I!!I'lDp' IIJ! '!lnl'11 !!!lI!'W'I.,I, .,r, 11 m n'I IP,, -'I!nml!' 'flll'!!'!1 ' ,1111 1'1'111 '!lrr,,'I' 9 '., ./ ,- Walston &Co. – – – – I n c NEw lORI( STOCI( EXCHANGE ANO OTHER LEADING STOCI( AND COMt.oIODITV EXCHANGES NEW YORK PHILACELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Switml.,dl OFFICES COAST TO COAST COt..lNECTEC BY DIRECT PRIVATE WIRE TABELL'S MARKET LEnER March 16, 1956 Mr,SONITE CORPORATION Statistics Current Price Current Dividend Current Yield' 42 1.70 4.05 the issues recently added to this letter's recommended list Vias Masonite Corp.This addition was made for a number of reasons. They are 1. A product for which a terrific growt Funded Debt 6,236,805 in demand is foreseen. Minority Int. 101,680 2. A future apparently unmarred by oper Common Stock 1,377,563 shs. ting and external difficulties which hav Earned per Sh.1955 5.08 Earned per 3.16 plagued the company in the past. 3. 11 very constructive technical patt n with a price potential of 80 over long t PJim. 3ales, 1955 56,600,000 Masonite is by far the largest producer Sales, 1954 47,800,000 hardboard in the U.S.,accounting for Mkt.Range 1956-53 – of total domestic production.This materi , 12 mos.ended Nov.30th which Masonite sells under a number of t demarks is a cellulose product made from VI d chips and other saw mill Vlaste by a proc s involving chemistry,heat and pressure.It can be produced in thicknesses ran ng from 1/10 of an inch to Six inches and in an almost unlimited variety of sh es and finishes. It can be sawed,nailed and finished exactly like wood. It is stronger than plywood and does not warp. It is eaSier to install than plast interior walls. It makes excellent weather resistant siding. And it is find g new uses each day in TV cabinets and other types of furniture. Masonite can also compete costwise with other products.Now,for the fib t time,it is cheaper than plywood,in addition to affording numerous structura advantages. Total U.S. plywood sales in 1956 probably exceeded 600 million Since Masonite's sales were only 60 million a gigantic potential market re mains to be tapped. I.n additional reason for buying Masonite can be found ill the improved operating picture which the company shows.Masonite earnings in prior years have been erratic and,in the period 1951-54,unimpressive. This record can be attributed to the former dependence on residential building which now accounts for only 50 of sales.Recent poor results stemmed from a number of operating problems which have since been solved or' eliminated.The first of these was the problem of the chronically unprofitable Ukiah, Calif. plant, which currently accounts for about 30 of output and was built as a supplement to the main plant at Laurel,Miss. In 1955, for the first time, this plant was placed on a profitable basis.A second deterrent to the compa ny's development was chronic labor difficulty, a factor which should cause no trouble over the nearer term at least.Thirdly,the hardboard market had, until recently, been plagued with below-cost dumping of Scandinavian surplus. This difficulty has also been rectified. Progress made in coping with these problems Vias reflected in the ings for the fiscal year ended August 31,1955; 4.42 per share vs. 2.67 a year earlier. Aided by quarter results of 1.40 against 797 in 1954, for the 12 months ended November 30, rose to 5.08. Since best results are usually shown in the second half, it would not be unreasonable to expect earnings in the 5.50 -6.00 range for the fiscal year ending August, 1956. Dividends, now at 307 quarterly will undoubtedly be supplemented by another extra, and may be as high as 2.00. Assuredly, the future for Masonite appears bright. This is reflected in the technical pattern. The stock Since 1952 has been building up a large head-and-shoulders base in the 17-33 range. The upside penetration of this base indicates a long term 80. Good support is encountered at 39-36, and any weakness into this area should be used to make purchases for long-term capital gain. ANTHCKY W. TABELL \,iALSTON & CO.INC. Tnt.. market letter I not and under no 115 to be … an offft to Hif or a aoilCltatlon to buy any Heurltte5 referred to herem The Informat'on contelneol hereIn 15 not R'u.art.nt.eed u to accuracy or and the thereof 13 not. and under no eircun'Ultanee 1!1 to Me.onstrued &.. a representatiOn by Wal..ton Co. Inc. All UpreslilOn! or opinIon are aub)ect, to ehanee without Walston II Co… Inc. or any OftlCer. Director or Stoekholtler there-of. may have an tntere-t In the ment,oned het'em ThIll market letter b Intended and presented merely U a general, Informal commentary on day to day market new'\ nnd not a complete ,nalpl! !ntonnauoD With respect to any ,unties Will M turnl.'!!hed upon request. WN 311t

-W—a–l-s-tloncn–&—C–o-. MEM8ERS NEw tORK STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO ISw ..d) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM PliU,1;j 13, J 9196 telephones from Florida as follows After reaching new intra-day highs of 514.69 and 170.66 earlier in the week,both the Dow- Jones industrials and rails underwent a technical correction that brought the averages back to 505.85 and 168.25. Today's strength brought both aver- ages to highs at 515.15 and 173.36. I still expect the industrials to reach about the 530 level and the rails about 182 before the phase of the advance is completed. There is strong downside support at 490 in the industrials and at 165-162 in the rails that should halt any near term de- cline. However, there are some technical signals that indicate that further strength to the levels mentioned above mitments. Our technical indicator gave should a sell be used to lighten trading co signal during the past week b 1- , in technical patterns like the present,there are usually two such signals b fore the market tops out. The second sell signal could be at a higher level As usual,individual issues will act entirely independent of the general mar t.lI WESTINGHOUSE AIR BRAKE COMPANY Current Price Current Dividend Current Yield Funded Debt Common Stock 32 1.20 3.8 35,000,000 4,141,633 shs. Very often favorable investment oppo tunities may be fOI-'nd in companies t p, t are diversifying and expanding into rc profitable fields of operation. Vlestl, g- house Air Brake, recently added to recommended list, may be an excellen Net per Share1955 2.02 Net per Share-1954 0.85 Sales1955 172,502,277 example of this type of operation. Westinghouse Air Brake has a long re rd as a supplier of rail equipment with n unbroken dividend record going back Mkt .Range-1956-55 33 1'8 – 25 1/8 years. Since 1951, an aggressive sal minded management has made a number Excluding non-recurring items. astute acquisitions in other lines, complishing this with no dilution of common equity. ks a result, of antic pated sales of 200 million for 1956, only 40 will be in the rail equipmerr field. Of this, approximately, one-third will comprise sales of the wholly- owned subsidiary, Union Switch & Signal, producer of centralized traffic co trol equipment and rail signalling devices repeatedly described by this let r with reference to General Railway Signal. These two companies divide the ra' signal equipm&nt field. The non-rail business of Westinghouse covers a wide variety of fields many with assured growth potentials. These include road building equipment, electronics,oil well drilling, mining and nuclear reactor construction. The fields are frerved through a number of acquired divisions. They incllde, Le Tourneau-Westinghouse, producer of earth-moving equipment for constructiJl and road buildingj Le Roi Division, maker of portable compressors and tic tools, Melpar, Inc., producing a variety of important military electron' – devicesj Cleveland Rock-Drill Division,serving the construction and mining il dustriesj and the George F. Failing Co., producers of oil and water well dr' – ling equipment. vlestinghouse has also established an Atomic Energy group rying on research and development in the field of atomic reactors. Earnings from these divisions are just be5inning to be evident. Excluj- ing non-recurring profit,1954 results hit a ten-year low at 851 per share, r,- flecting heavy initial expense of some of the newly acquired divisions and e low rate of rail equipment orders. 1955 results improved to 2.02,but these must be examined more closely to a true idea of the company1s currer earning capacity.During the last quarter Vlestinghouse operated at a sales vp – ume of better than 50 million and earned 821 per share. Profit margin for t. e quarter also improved sharply. With order backlogs in many of the divisions at new' highs,and with the air brake bUfriness bolstered by 1955 rail earnings 1956 should show earnings in the 3.00-3.50 range,perhaps even better if margins can be improved during the latter quarters. Dividends may well be liberalized as these earnings materialize. Supporting this excellent fundamental picture is an excellent pattern with an upside indication of at least 45 followed by possibTe levels.The stock would appear to be eligible for purchase in the 30-27 where there is excellent support. ANTHONY 1'1. TABELL contained h by Walltun e.Irierin(). not pUAranteel as to aceuracy or In.. All exprr.!.uons or opinion are and the !urnJ.Shing thel'eof La not, and under no Clreumlltanees III tll beeon!ltrued as, a reprl!!SentatJon to ehanlre without notlee Walaton. Co.. Inc. or any Officer, DlreetGr or Stockholder thereof, may have an mtere..t In the mentIOned heTeln TIllS market letter bI Ultended and merely u a I!ennal. mrormal on ,jay to day market new.'! and nc)t a .. a Addlb()nal InformatlOn with respect to any Jecuntle!l referred to herein WlJJ furnished upon request Vr N 3'Jl

rl W—-a–l-s-tIoncn–&—-C–o-. MEMBERS NEw rORK STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODITV EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,Id) OFFICES COAST TO COAST COfNECTf; BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER March 29, 1956 Among the leading stocks in the market rise which began last January have been the Oils, with leading equities having posted gains up to 20 from 1956 lows. This poses a number of questions for the investor committed to oil securities. What has caused this drastically improved market action Can it be expected to continue And are oil stocks still good buys at or arcund current levels The cause of the rise is not overly difficult to determine. Oil 'has, since its inceptJon, been a growth industry. Indeed, accordinr to Chase lianha ttan Bank economists, -,- US. oil-consump t'fon, has', over/the – 23 grown at an annual rate of 5.8. Free foreign demand has recently grown at the even more astounding rate of 11 annually and the 1954-55 increase was even more startling with U.S. consumption posting close to an 8 increase. Percentage growth in consumption may not be so striking in 1956, but most economists expect the long term growth trend to continue. The recent rise' in oil stock prices has been based then, at least to some extent on fun- damentals. As to the probable continuance of the recent rise, most oils have, during recent months, built up conSiderable accumulation patterns which, in most cases, appear to indicate higher levels. In many stocks good tech- nical support is found just below present levels. While, in certain cases, near term correction or consolidation appears necessary, weakness could profitably be used to add to commitments. It would seem, therefore, that profitable opportunities can still be found in some oil securities, for the reasons mentioned above, plus a number of others. A general rise in the price of crude oil, considered highly probable by mfmy authorities, would add to potential earning power of the oil companies. hnother industry characteristic which points to , 'long term '-growth' 1s ctl1e increasing use—of p-e-tr-oc'hemicals. factors taken together tend to create a.favorable long term investment picture for the industry. What stocks, then, offer the best potential It is important for the investor to differentiate between the many different types of compa-nies within-the industry. To do this, two factors must be taken into consideration – (1) the extent of the company's production compared with its refining and marketing operations and (2) the location of its reserves. A short glance at price-earnings ratios will demonstrate the impor- tance of the production factor. J, company like Amerada, exclusively a producer, or Continental, which produces more oil than it refines, tends to sell at a much higher pie ratiO, (often more than 20 times) than a company heavily committed to refining and marketing. Among the for this tendency are the favorable tax treatment given to producing com- panies by means of the depletion allowance, the heavy fixed costs invol- ved in the building of huge refineries, and the heavy competition which obtains in field. These and other factors comtine to create a higher price-earnings ratio for most producers. second factor of importance is tne.location of reserves. Present middle-East reserves amount to just short barrels-er'f oil — or roughly three times present U.S. reserves. Furthermore, middle-East re- serves are in most cases easier of recovery and closer to foreign markets which are expanding at a swifter rate than U.S. markets. These favorable factors tend to offset the danger of losing middle-East reserves due to political development and explain the premium which has been commanded by the international oil companies, such as Standard Oil of New Jersey, Texas Company, etc. market letter IS not. anrlunder no rs to be conatrued … an otrt'l' to II or .. 6Ohdtabon to bUT any I&eeluitte8 rderl't.'d to hereIn The n'lformatlolt contame.i hereIn 19 not as to aeuracy or eomplet.enesa and the farnishmg is not. and under no eU'eum!!ltanee5 IS ttl .'\, a repregentatlon by Waltt,om Ii Co lnl' All CIprr.l'lLons of opinIon are to dlange- without nabet. WaJ..tnn Ii C(I.., Ine. or any Ortlcer, DIrector or St.oekhnlrler thereof. rna,. have an Int..re\t In the !lUtille'!!l mf!ntlOned herem Thl. market letter b lDunded and meTel,. aJ!I .. general, mformal commentary on day to day .market news and not a complete analYSIS Additional ,ntormauon 'lJIth rnped. to aD,. .untles referred to bll!reln WIll bot furnbhed upon request. —– – – – WN 301 -2- If the above-mentioned considerations are taken into account, suitfrble purchases of all types may be found; producers, integrated companies, refiners, domestic and international oils. Reviewed below are a few oil equities which should commend themselves to the investor, with varying appreciation potentialities. RICHFIELD OIL (80 ), which would seem to be worth close to its present price based on indicated earning power alone, appears to have in- terestrng speculative potential due to exploratory work being done in the middle-East. -Together with CITIES SERVICE (68 ), Richfield has taken a 30,000 square-mile concession in the Province of Dhofar. Joint ventures with Cities ServicE; are -815'0 1reing- under'l5ake-rl varying interests are held in a large Egyptian concession. It is thus highly probable that future developments may uncover reserves of major- importance to while defensive value is provided by good cur- rent earnings,-an 7.75 for 1956. —.,——' The long-term technical projection on the is 150 with an in- termediate term 110. There is good support at 75-70. Cities Service, which first entered our recommended list at 38, wll, of course, also be in a position to benefit from any possible joint concession discoveries. Objective from a technical point of view is 85. ATLANTIC REFINING (41 ) and SINCLAIR OIL (65 ) are two companies- with roughly analogous situations. Both appear cheap in relation to earn- ings and to other oils, ostensibly because of weak reserve pictures and- heavy marketing competition. Both these companies are embarking on for- ward-looking programs to improve the marketing picture and increase oil reserves. Indicative of this is Atlantic's recent purchase of the assets- of Houston Oil. Since this purchase is being financed by outside institu- tions with repayment as the oil is taken out of the ground, Atlantic is – ac q-ulrlng -large future tp sive action of this type can be expected to improve the operating picture on both Atlantic and Sinclair. Atlantic has held in the 40-35 range for over a year with the upside penetration indicating a possible 60. There is good support just under cur-rent levels. Long term indication on Sincla-ir is 89 with support at 60-58. AMERADA PETROLEUM (119) has long enjoyed a premier record among oil producers, due principally to its spectacular discoveries in the WillistonBasin and in Sturgeon Lake in Canada. Due to the fact that intangible dril- ling costs are charged directly against earnings instead of capitalized, earnings tend to be somewhat understated and are therefore capitalized at a high ratio. Based on the record and on earnings improvement foreseen,the shares still appear to be fairly valued. Long term indication is 150- 160 with possible higher levels as pattern broadens. Support at 110. CHICAGO CORP. (25 ) has an excellent technical pattern with an ob- jective of 44. There is support just under the current market. Chicago- is a producer on balance with an excellent reserve picture and good ex- ploration potentialities.Thelarger part natural- – gas and ,the company will benefit from growth in this field also. 1956 should approach 2.25 with cash flow double this figure. NOTE Edmund W. Tabell is still on vacation in Florida. He will return to New York on Monday, April 9th. ANTHONY W. TABELL WALSTON & CO.INC.

r Wals &-tonnc Co. – – I MEMBERS NEw fORk STOCK EXCHANGE AND OTHER LEADING STOCK AND' COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swit,ld) OFFICES COAST TO COAST CONNECTEr; BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER April 6, 1956 The market rise lost seme of its momentum last week although the Dow-Jones Industrials reached a new high at 522 .86. At this level the average was approaching our 525-535 objective for the Dow-Jones Indus- trials, indicating the advisability of profit taking on strength in trading accounts. As this letter has repeatedly emphasized, however, concentration on individual stocks 1\111 be far more fruitful than trying to guess the trend of the general market. The secret of success may well lie in picking the stocks which will outperform the general market regard- less of what it does, rather than in forecasting the moves of the average. BARBER OIL (66) has recently-concluded 'negotia-tJons will conduct exploration and development on 290,000 acres controlled by Kirby Lumber Company. The acreage is located in the gulf coast area of Texas and Louisiana. Barber will carryon the search for mineral de- posits through a wholly-owned subsidiary, Oil Reserves Corp. of Houston, Texas. CORNELL-DUBILIER (36) recently reported December quarter earnings of 71 cents per common share versus 1.01 in the corresponding 1954 period. Reason for the decline was temporary heavy competition within the industry. Management expects this factor to become less important as color TV production rises in the fall. This letter continues to regard the stock as an excellent long term capital appreCiation vehicle. EAGLE PICHER (43) which first entered our recommended list at 22 has recently reported very favorable results for its fiscal quar- ter ended last February. Sales increased 13.8 to almost 30 million dollars and income was up to 1.04–per share versus 71 cents last year. These figures do not include a non-recurring profit of 1.41 from sale of Mexican The first quarter is seasonally a poor and, if business continues at the current rate, it would appear legitimate to expect earnings to approach 6 for 1956. – The recent annual report of (42) made an excellent comparison with that -Earning-sw.er.e at …lt.21 versl,lS 2.82 in ,- the prior year with sales posting a 32 increase to 47 million. Since operations at the! Fremont plant began to show substantial improvement only in the latter part of 1955 and the JonesFoundry and Machine was not acquired until August 1956 results should continue to show im- provement. Some of the pressure on profit margins may also be removed this year by increased latex production and lower natural rubber prices. Work at the San Manuel Mine of MAGMA COPPER (25) is progressing on schedule and the mine is expected to reach a full prcduction basis by the middle of this year. Full operation of the San Manuel Mine will have a noticable effect on wor1d copper supply and will make Magma the third largest U.S. copper producer. According to a recent release by the company, surface construction is almost complete and underground development is proceeding on schedule, with a third shaft to be equipped this month. Various estimates have been made as to Magma's earnings ability once the San Manuel operation is in ,illl swing but with copper at present prices, Magma could well earn at a r4te of 30 per share, with cash flow much higher. PAN AMERICAN WORLD AIRWAYS (20) recently received a rebate of subsidy from the government, arising mostly from overpayment by American Overseas Airlines, which Pan American-absorbed in 1950. This figure was reduced by a-subsidy 2eceived. The . justment reflected the htlantic division only, and the Pacific and Latin hmerican divisions are-still subject to subsidy readjustment. It should be remembered that Pan-American recently received a permanent subsidy- rate from the CAB and in the future will no longer be subjected to adjustments of back subsidy. AvlT/dm En—TD vi. THELL vlALSTON & CO., INC. '- Thll letter ur. not. and lI.ndoH' noelreumltaned IS to be eonatrued …. aD. offe'l' to HI( or a .aliertatlCIn to buy any nferred to herein The mf()rmatlon \.t not ,;…..rantftd as to aecuracy or eoaJ.pWtenesa tM t'tIrnfiltung ' not, and under no oI!'ircum.,t.noes IS t.n beeon3trued U, a reprf!'l3entatlOl'l by 6 Co, All elllrltlllllOM of osunlOn are aub,.,ct to 1n1.hout Walaton. Co.. Inc, or any Director or St.Qekh()lder t.hereof, mlY have In Inttore'Ot In 5Untae mentlonei he'reln Thb markltt Letter is intended and Ilre5ft).ted meTel,. A.I II genet'a!, Informal commentary on oay to day market ne….s and nt a., a eompJeu. analJ'lfil to an,. Iunbe. referred to be urntllhed upon requll'!St.. WN 3I)l – — …… III

— &- Co.Walston—-Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,.,Idl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER April 13, 1956 The Dow-Jones industrials reached a new high of 524.37 on Monday be- fore reaction to a low of 506.73 on Friday. The rail average, which seems tc be meeting some supply around the 173 level, failed to reach new high territory during the week but reacted only moderately on Tuesday's weak- ness. There is no change in my market opinion. I expect the various averagee to do little marketwise for the next six months or more. On the upside, I find it difficult, at the moment, to envision a much higher level than rougr ly the 525-535 area. On the downside, there is strong support at the 490-48c -and. 1l.gain a,t, ,same situation prevails in the rails o with 180-182 as a possible upside pr-ojection and at'r6'4-162-ana- again at 155-150. As I outlined in my year-end forecast, I anticipate a broa 10 to 15 consolidating area similar to 1951-1953 for at least the next fri) months. hll of this will be in preparation for an eventual upside penetra- tion at a later date to 750 or higher for the industrial average during the 1958-1960 period. While the stock market as measured by the averages may move in a nar- row trading area for the 'foreseeable future, individual issues will have worthwhile moves. The technical patterns of quite a few individual issues indicate the possibility of upside moves of 50 or more during a period in which the averages may' hold in a lC or 15 trading range. Conversely, qUitE a few patterns suggest greater percentage declines than envisioned by the averages and, of course, a much larger number indicate no movement of great importance in either direction. Perhaps a brief recapitulation of the tech- nical indications of some of the groups might be of interest. AIR-CONDITIONING. This group has done little marketwise for almost twc years. Relative strength has been showing improving action recently and there appears to be little downside risk. Carrier Corp. and Trane Company appear to have the most interesting patterns. AIRLINES F T-Q.is is -ano.ther group. that has ha.s done nothing of importance marketw\;se for a year. Still believe theionger ferm potentials are most interesting and with higher earnings indicated for 1956, there appears to be a minimum of downSide risk in holding these issues. -Al- most all the issues in the group appear attractive technically, but Pan- American World Airways is my favorite. Also believe United Airlines offers above average possibilities. hUTOMOBILES. It would appear that this group needs a bit more time to build up a favorable technical pattern and it may work a bit lower in the process. Later in the year, this group should offer some interesting profitE possibilities. BUILDING SUPPLIES. Very long term patterns and recent actior has been improving. CEMENT. h further consolidating period needed. CHEMICAL. Individual issues have diverse patterns, but the majority are on the favorable side. DRUGS. 30me very interesting profit potentials in this group. MINING & SMELTING. Long term indications still remain favorable and should b.e bo- ught on mi n-or p – r i c e – declines. MOVIES. Unfavorable. GIL. Individual issues still look attractive. See March 29th letter. STEEL. Has held in trading range ror six months or longer. U. S. Steel pattern is typical.-Has held in 51-62 area since July. An upside penetration would indicate 74-77. So far, relative strength has been below average but this may change. Group should be watched closely for an indication of the direction of the next move. EDMUND W. TABELL vU,LSTON & CO. INC. This mllrh(!t letter not. and under no Clrcum131ances IS to he construed as, an offer to 'lell or n qOhcltntlOn to buy any secufltics referred to herem The mformatlon contained herein IS not gUII.rnnteed ns to accurncy or completeness and the furmshmK thereof IS lIot, anil under no clrcum;tanceb Ib to be construed as, II. re)Jresentntion by \Valston & Co, Inc All expressions of OPinIOn are subJect tG change Without notIce & Co, Inc, or I\ny Officer, Director or Stockholder thereof, may hale an llItcrest III the SccufltlCS mentIoned herem ThiS market letter IS mtendC(! and presented merely us a mformlll commentary on day to day market news and not as a complete anai'SIB AdditIOnal mformatlon WIth respect to any SecUrItlCS referred to herem \\111 be furm.,hcu upon request '\\'N 301

Walston 5- Co. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Swoheda.d) OFFICES COAST TO COAST CONNKTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER April 18, 1956 Back on the job after an extended business trip and a vacation in I find that there is little change in the technical pattern outlined in my let ter df March 5th. The Dow-Jones industrial average reached a high of 524.37 early in April and subsequently reacted to 506.73. As outlined in my 1956 fore cast, it is probable that the industrials will again contact the uptrend line connecting the July high of 471.73 and the September high of 489.94. This up- trend line was around the 525-535 level in March. It has now moved forward to the 530-540 level for April. When this level is reached it is possible th,t the market will have reached its high for quite some time. On the downSide, there is very strong support at the 490-480 level. At the present price level of 506 .55 the industrial average is about midway between the two projections. It is possible that the 540-480 level will contain the averages for the next six months unless news events more dramatic than now envisioned occur. vlhile this does not appear to be a very vulnerable pattern, it must be realized that the market is in high territory and, particularly in the blue- chip section, is discounting increaSing future earnings and dividends rather than immediate prospects. At a price-earnings ratio of 14.1 and a yield of 4 the industrial average is not selling at levels as high as those reached at previous market peaks, but it is still at a relatively high level. The weak- ness in the bond market has also brought the spread between high grade bonds and stocks below 1. This is a level from which it is difficult to project a dynamic upside move in stock prices. From a technical point of view, both the averages and individual stockE have not as yet formed distributional top patterns of any great importance and it would appear that more time will be needed if such patterns are to be However, the market at this level must be watched closely for signs of deterioration not yet evident. One potentially disturbing factor is that the twenty-five week total of downside volume has been slowly increasing despite the rise in the averages and also upside volume has not materially increased. If the moving total of downside volume should expand to new high territory for the past twelve months accompanied by a downside penetration the 200-day moving average (which now stands at around 475),the technical picture would be quite disturbing. Until some of these potentially unfavorable factors actually take place,however, an attitude of cautious op- timism is warranted with emphasis on special situations and a willingness to buy selected issues on moderate weakness. It is in the technical action of individual issues and groups that the real clue to market movement will be found. The indications are quite diverse. In a broad sense, groups fall roughly into the following categories,but the situation is further complicated by the fact that even within a group indi- vidual issues are both favorable and unfavorable. As an example, National Distillers has a favorable pattern while other issues in the group show me- diocre relative strength action. FAVORABLE Air-conditioning, Building Supplies, Drug, Electrical EqUipment, Machinery, Oils, Paper. – GOOD ACTION BUT iUGH Aluminum, Business Machines, Coal, Glass Con- tainers, Railroad Equipment. NEUTRAL Aircraft Mfg., Auto Equipment, Brass, Cement, Chemicals, Communications, Finance, Food Chains, Mining & Smelting, Rails, Rubber, Steel, Sugar, Tin Cans, Tobacco, Utilities. FOOR ACTION BUT IMFROVING Airlines, ElectroniCS, Fertilizer, Gold, Meat Packing. UNFAVORABLE Automobiles, Farm Machinery, Food roducts, Gas,Liquors, Movies, Retail Chains, Soft Drink, Textile. The above compilation does not show the entire picture. For example, the steels are close to an upside breakout and could reverse their hitherto inability to reach new highs since September. The airlines and electronics are forming strong patterns but the timing of the potential rise is diffi- cult and patience may be required. Automobile issues are acting poorly and may work lower over the near term, but should be watched on weakness for a buying spot and a possible rise later in the year. BImmm ' .'l'ABELL Th,s memorandum is nol to be construed 051 an offer. or !.OIIC!tllllon 0f ff t'S to b uy or II any may hIt,,!! an Interest In some Of all of Ille secuntlu mentioned herein Tl)e foregOlnQ materia b.ued upon .nformaflon believed reliable but not neoeuatoly oomplete, not gual/lnteed /IS p.f!J!,,,,rHt' blr' bi WJ1II9'n & Cooi o.nrformatptaerntneornlythe'IeIof1,5 t f I d' t ' lended to foredose Independent InquHy II or Ina, /In no In

Walston &- Co.—-Inc, Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (SwH,Id) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER f..pril 20, 1956 1IESTERN PAC IFIC RAIIROAD CO. Current Price 72 /4 vies-tern Pacific, which has held in the Current Dividend 3.00 73-57 trading area for over fifteen Current Yield 4.1 months, is now shO'wing signs O'f a Funded Debt 42,859,000 Equipment Oblig. 15,099,933 CommO'n StO'ck 566,367 shs. PO'ssible nearby upside breakO'ut. This WO'uld be a very encO'uraging technical development and indicate an advance t a higher price plateau. Net per share, 1955 Net The long term grO'wth prO'spects O'f Wes ern -Pacific are-very impressive., Refl ing rapid develO'pment O'f PO'Pulation a Mkt.Range 1956-55 73 7/8-56 3/4 industry in the territO'ry served,reve e BefO're Sinking Funds. Earnings after S.F. were 6.86 in 1955 and 5.62 in 1954. grO'wth is well above that of Class I railrO'ads in the aggregate. Traffic vO'lume be subs tantial in the cO'm mO'nths, with the 40 million FO'rd ass bly plant at Milpitas, CalifO'rnia,(ne San Jose) and O'ther new industrial shippers affO'rding considerable business This grO'wth is expected to' continue and eventually tO'P the 59.2 millions 0' tO'tal revenue in 1953 generated by the ttnusual revenue bulge during the KO'r n hO'stilities because O'f movement of high-rated Government traffic. Total rev nues were 53.7 in 1955 and are expected-tO' be higher in 1956. I Largely serving as a bridgeline carrier to the Pacific Coast, the company O'perates 1200 miles of first-line track. The main line of 927 miles extends frO'm San FranciscO'-Oakland to a cO'nnectiO'n with the Denver & RiO' Grande I'lestern at Salt Lake City. vlhile this rO'ute is longer than the cO'mpeting 785 miles of Southern Pacific to' Ogden, 11estern Pacific's rO'ute thrO'ugh the Feather River CanyO'n crosses the Sierra Nevada at a lower eleva tiO'n and with less grades and. curvature. Western Pacific also has its Insi Gateway rO'ute with 107 miles 'O'f main line frO'm Keddie, California, to' Bieb , California, which cO'nnects the 'Santa at Stockton, O'ne of the Pacific CO'ast NO'rth-South systems. The traffic is almost entirely freight. Western Pacific O'peratE O'nly twO' passenger trains. One is the famous California Zephyr which operatE at a profit. The O'ther is a small RDC Budd Car which is run primarily for — railrO'ad personnel and operates at a loss. The freight traffic has been en- larged by an aggressive industrial department supplemented by acquiring lanc fO'r industrial purpO'ses to' attract custO'mers. This PO'licy has paid and is evidenced by the large number of plants lO'cating in San JO'se, StO'cktO'n, Sacramento, Pittsburgh, MO'destO' and O'ther lO'calities. Since cO'ming out of reO'rganizatiO'n in 194, the company has plO'ughed back intO' prO'perty O'ver 50 a share in excess O'f dividend payO'ut. This mO'dernizatiO'n prO'gram,which was stepped up when Mr. Fred Ihitman was installed as President in 1949, is expected to cO'ntinue. Just when it wilr be completed is difficult to' ascertain, but it should result in a sharp in- crease in earning PO'wer with 15 O'r 20 a share as a possible projectiO'n. PrO'gress has been substantial already. FO'r example, the signal prO'gram has been practically cO'mpleted. At a CO'st O'f O'ver 7 million, Centralized Traffi CO'ntrO'l has been installed frO'm Salt Lake City to' Oakland and a mO'dified C.T.C. has been installed on the San Jose branch to the FO'rd plant at Milpit s. Western Pacific will receive a tax benefit O'f apprO'ximately 5 – —. –millioIT' from the'reorganrzati-O'n'-ofcthe !5acramentO'-PO'rthern-Rwy -under- wh-ich Western Pacific will receive 75,000 shares of the subsidiary's stO'ck, its sO'le capitalizatiO'n in return for over 25 milliO'n securities in the O'ld cO'mpany.Just tc what years this tax credit will be allO'cated is nO't The stock, in my O'piniO'n,PO'ssesses considerable merit for inter- mediate and lO'ng term appreciation. \'lith the eliminatiO'n O'f the preferred stO'ck in 1954,further anticipated gains in earnings shO'uld result in a highe dividend payout.There is alsO' the lO'ng term speculative possibility that Western Pacific can sO'me time becO'me part of transcO'ntinental railrO'ad sys– – i tem.The technical pattern is very impressive.The upside PO'tential O'f the 73- 7 area is 105-115 fO'r the intermediate term.However,the brO'ad range in which stO'ck has held since 1951 suggests a much higher PO'tential over longer term. ThIS mnrket letter 'I not, and under no CirCumstances IS to he construed as, an offer to sell or 11 contmne-I! herem 15 not as to accuracy or completeness and the furmshlng thereof IS n01, 0 C ce. hy Wnl!.ton & Co Inc All e,,presslOns of opInion are subJect to change without notIce Walston & r;j;, IJ'IIQ/litt'Im1\' hll\e an mterest the SecUrltlC!! mentIOned herem. Thls market letter IS mtended and presented fo Sto kh c fiory on Id 0dayert t 0 hde re of may kt news and not a!! a complete analYSIS AddltlonlliwlormatlOn 1,I,1th respect to any seCUTltIes referred to herem Will be furnished upon request – w ,