NEW YORK -W–a-lIsntocn,-&– C-o. Members New Y01'k Stock Exchange PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,h.,I.nd) OFFICES COAST TO COAST CONNECTED 8Y DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER April 27 J 1956 Perhaps the outstanding feature of the market is its extreme diyersity Despite the fact that the industrial average, at the week's low, was more than twenty pOints below its recent high, there were many individual issues that reached new high territory and the rail average is selling at new highs despite the decline in the industrials. This diverse action should continue and my market opinion remains the same. I expect the averages to move in a relatively narrow trading area with worthwhile moves in both directions in individual issues. In my recommended list for capital appreciation for six months or long er, ,a S.\llJn background of fundamentals. Some patience is often required, but the upside potentials offset this The list is reviewed periodically and a summary of the outlook for each issue starts below ALLEGHANY CORP. ( 10) This highly leveraged investment company, with major nD1dings in Missouri Pacific, New York Central and Investors Diversified Services, is an interesting long term speculation. Originally recommended at 3 3/4 in late 1954, moved up to a high of 11 in June 1955 and has been consolidating in the 11 – 7 5/8 range since. \llould continue holding and IUY on motterate weakness. The intermediate term on my technical work is 13-15 and the longer term potential is 17-18. ALLEGHENY LUDLUM STEEL (41) – This stock has me-ved-up sharply since its original recommendation at 1-15 (adjusted for 2-for-l sp lit in 1955), but higher levels are still indicated. The bulk of Allegheny's output is in specialty steels and it also has a promising position in for the first quarter were 1.23 and a 5.00 potential for 1956 is conser- vative, it would appear, The dividend of 401 quarterly to yield only 3.9 is a conservative payout and an extra or stock dividend is a possibility. A high of 43 1/8 was reached in March and the stock has since held in the 4340 area. The long term potential is 75 and there is downside support at o 38-35..-.T.hf-Lstock- ..-..s-.-.hQuldbe — hS))Q. and – a.d.-de-d to on moderate — price d ec —. l i-n-e s . .oO'';)'SH & CHEMICAL (115) This stock has been in my list Since 195 when it was recommended at 40. Despite its rise to a recent high of 120, retention is still advised. Earnings for the first quarter were 1.74 as compared with 1.33 in the same quarter of 1955. Earnings for 1956 could reach the 7.00-8.00 level. On 8.00 earnings, the price to earnings ratio would be 14.4, a modest ratio for a growth chemical company. T'he stock split of 2 1/2 shares for 1 was recently approved and when issued trading in the new stock has started. The technical upside potential-is 120-150 but the pattern may broaden. There is downside support at 110-105. The stock should be held and added to on moderate price weakness. BARBER OIL (65) originally recommended at 59 last year, remains a long range speculation on development of special situations on the part of a management whose record in the oil industry speaks for itself. According – to the latest lalance sheet there is about 27 per share of cash and govern- bonds behind each share of Barber, plus some 6.00 per share of market value of TXL eil and Texas Pacific Land Trust stock. Considerable cash flow is – provided by a fleet of tankers which are said to be operating at a profit– able'rate so far this year. Since Barber is currently believed to be sezl- ing well below true liquidating worth, the investor would seem to be get- ting good value, plus the speculative potential inherentin new ventures- on which the company may embark. Barber has for some -time' ownea a 50- in- terest in American Gilsonite, which last year announced a commercially – feasible process for obtaining gasoline from this mineral. The company re- cently concluded a contract with Kirby Lumber to explore 290,000 acres owned-by that company and Louisiana. Intermediate-term objective is 75-80,followed hy 105-115. Support is at 65-60. & DECKER (38 ) recommended at 19, has been in the 40-43 area Since the 2-for-l split in September, 1955. This do-it-yourself stock is broadening operations in foreign countries. Its products are used mainly for maintenance purposes. Earnings for first 6 months of 1956 fiscal year (ending Sept.30th) were 2.44. Dividend payout of 1.OO,plus stock divi dends modest and could be increased. Jpside penetration of the 8-month old 33-40 range wQJ1Jd h-rm potAntradjpg indicate followed by a 0letieQs IftJ'ir.llnd under n.) clrcumstllncec 1'1 to he construed as, lin offer tl) Ol II bohCltatlOn to buy my seeuntIc'l referred herem The mformabon t -bMlttn ne'rl'lterelw' t.e n.)U l,).rla9'nnteed as to nccurncy rrr completeness nnd the (II rnishm;- thereof IS n,ot…..AIV.j.l.ll,d,e lo be construeri n;, n reprcsentatlOn by Wnlston & en Inc All cpreSSJQll'l of OPlnlon Ilre …ubJcct to Chll.ll1;e v.lthuut ntlfC Wal'ltoU.4JiVvUNU ur Stockholder thcrer, mny hnvc .In mtcrest secuntlCS mentlOncd herein Thl'l market letter IS Intended and news lind not as a complete anillysis Addltlonnl informatIOn 'Ith r('Speet to any SCLlltltLes ,equcst on day to daY,ml,Nar3ko',' '-

—- NEW YORK Walston &Co. —-Inc — Members New YOl-k Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Sw,j,,dl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER May 4, 1956 General market action improved during the past week with the rail aver age at a new high of 179.54,and the industrials again approaching the April high. Recent action of the market is perhaps best typified by the Dow-Jones 65-Stock Average which has held in a narrow trading shelf between 179 and 183 for well over a month. An upside breakout of this area to 184 would, from a technical viewpoint, indicate an advance to the 190-200 area.Friday's close was terms of the industrial average this would most like- ly mean an approach to the uptrend line connecting the July and September highs .You may recall that our 1956 forecast mentioned the probability that this line would be touched before the tnattffue''the – — -.,- uptrend line was around the 525 level. It has now moved slowly ahead to the 540 level. On the-downside, the s-upport level is the 490-480 area. The mar- ket could hold in this broad 540-480 range for a long time to come while individual issues pursue their own course, regardless of the general market. Figures for the past week are not currently available, but advancing stocks were offset by a large number of declining stocks as well as new 1956 highs by new 1956 lows. This is truly a market in which one must own the right stocks. I am continuing below a review of my recommended list, but because of new developments in some issues, I am not following the alphabetical order. JOY MANUFACTURING ( 50t) reached a new high at on Friday. Des- pite its sharp advance from our originally recommended level (23 1/2 on an adjusted basis) the stock still justifies a Buy-Hold rating. Earnings for the six months ended March totaled 2.73 a share. Earnings for the fiscal year ending October could reach the 6.00 level. At present prices Joy is selling at less than 8 1/2 times estimated earnings. My long term price projection for the stock remains at 75. DRESSER INDUSTRIES (70 5/8) also reached a new high on Friday'at 70 7;8 Here again a large profit is availabJ ,e (originally recommended at 33) but7 . the rat ing remains. Buy-Ho lelo R.-E. Re vic id ent–and se-cpe.ta.-ry- .' – -I treasurer, told the Financial Analysts of Philadelphia that sales for the fiscal year ending October will total nearly 205 million resulting in after-tax earnings of 7 a share as compared to 5.04 for fiscal 1955. At present prices, the stock is selling around ten times earnings, but it is probable that this manufacturer of oil, gas and chemical equipment is entitled to sell at a higher earnings multiple of twelve times earnings particularly in view of its lessened dependence on capital goods and increasep sales in expendable items. My upside objective remains 85 followed by a longer term 105. GENERAL RAILVIAY SIGNAL (80) has been resting after reaching a recent high of 84. (Originally recommended at 59). Earnings for first quarter were 1.64 as compared with 62 in 1955. This improvement should con tinue and, as the first quarter usually shows the lowest earnings, a projection of 9 to 10 is possible. There is no funded debt and only 333,587 shares outstanding and earnings could gain rapidly. The stock is a potential split candidate. My potential upside projection remains 140-150. BUTLER BROS. (26 1/8)is a recent recommendation at 23. The stock has moved above 2' which is a new high since the spin-off of Canal Randolph Corp.(selling at 6 on the American Stock Exchange.) This stock yields over 5 and with a large amount of cash potentially available for new invest- ments, the stockhas possiBilities. ..' WESTERN PAC IFIC RJ-.ILROAD (78) was recommended in my April 20th letter at (2 3/4. SUBject to I.C.C. approval, a 2 stock dividend was de- clared last week and it is possible that this may be repeated later in the year. This road, serving a growth territory, has an earnings potential of 15 to 20 a share when the modernization program is completed. The stock reached a new high of 791/8 on Friday. The intermediate term potential appears to be 105-115 followed by much higher levels over the longer term. EDMUND \II. TABELL \IIJ..lSTON & CO. INC. Thu; marhet Iett2r IS not, and under no Clrcumstnnce') i'l to he const.rued aB, nn offer to sell 01 a AoliClt.atlOn to buy aoy secunhes .referred to herem. The mformat.lon Lootmoe. herelll IS not I!ullrantced as to accuracy or lind thc furnlShlllR thelcnf I' I\ot, and undel no ('\rcumstances IS to be construed as, a repre'lentll.tlOn h Wabtun & Co Inc AU C'l.prCSSlOns of opllliOn arc subJcct to change WIthout IIntlcc Walston & Co, Inc, or any OffICc.r, DIrector or Stockholder thereof, may have all mterest securities men til ned herem '1 hi'! market ettel IS uftcoiled and prebentC,j mCI ely .1; Il J,(eflcl.d, mfOllllaJ commentary on day to tIay mnrkct nev.s and 1I0t flS a complete nnnlysl!. AddltlOnlil mormllt.lOn with respect to allY bC'.UI retci red to hoon ,,111 he fUI upon refuest \VN 301

Walston &Co. – – – – – I n c . – – – Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,tmld) OFFICES COAST TO COAST CONNECTED DY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER 11ay 11, 1956 Inability of the industrial average to better the April high of 524.37 and confirm the strength in -the rail average brol;ght on a correction and a possible testing of the support level in the Dow-Jones industrial average. The week's intra-day low-was 497.57. The rail average reached its first upside objective of at the week's high of 182.54. The rails should meet support at low was 177.07. There is a possible upside indication of 190-200 after a resting spell in the rails. Below is a continuation of the review of my recommended list. CALGARY & EDMONTON (26) was originally recommended by this letter at – . along by the recent upsur.gecin stocks-,. recent, ly reached a high of 28 7/8. After this substantial move, some resting may be required at around current levels,but continued retention as a long term speculation is advised. The company holds one of the largest acreage spreads and fee-owned mineral interest in t.lberta and is engaged in 'l. comprehensive program of exploration and development. The Pincher Creek gas field, which lies partially on company property, will be opened up by the new Trans- Canada Pipeline 'CHAIN BELT recently reached a high of 74, after being originally recommended at 30-35, and has almost reached its initial objective of 78. A longer term 125 is indicated, however. The forthcoming rights offering -. may cause some pressure on the stock and it will probably require some re- accumulation at current levels. It is, however, still suitable for long term holding. With the near term and longer range fundamental outlooks favorable and with the company's good position in the automation field, sales and earnings should continue the long term uptrend. – CORNELL DUBILIER (32) was originally recommended by this letter at the 21-22 level. The stock recently reached 39 and has reacted to its current price after the omission of the extra dividend and the reporting of poor – first quarter earnings. Since these poor earnings are believed only tempo- rary, hQwever, and, future color TV production is expected to even- tually double or treble- ffle –need for capacitors, Which are –the 0 company's principal product, the stock would seem to have. considerable merit as a long term purchase. J..ction may very possibly be slow but the stock now appears in a buying range for patient holders. At its recent high of III 1/4, CUTLER HAMMER had almost doubled in rrice since originally recommended by this letter at 57. The company is a leading producer of electric motor controls which are used largely in in-dustrial installations and has an excellent long term earnings record desrite the fact that its sales are sensitive to charges in industrial capital requirements. Cutler Hammer is another company which should benefit as – the trend to automation continues as the industrial controls which it manufactures are necessary to the automated handling of materials. The stock should be held for its long term objective of 120 followed by 140. DOW CHEMICAL (68) was originally recommended by this letter as a quality, long term growth issue. At that time the stock was selling at B8-40. However, the original growth potential remains. Although the stockappears high in relation to current earnings, cash earnings, due to accelerated amortization, are much higher than the reported figures. Amortiza- charges should remain high for the next few years, but an upward in ear.nings should nevertheless ,be, .in evidenc.e. From point of view, the long term objective is 95, although some backing and in the 70-60 area may first be required. EDMUND W. TABELL 1J.fALSTON & CO. INC. Thl!l mllrket letter IS not, lind under no ClTcurnl,.llnces IS to be construed liS, nn offer tlJ sell or a soliCitation to buy any securities to herem The mformnt!on byonU Ined herem IS not gUlrnnteed I1S to nccurncy or and the thel eor i'l nol, nml under no .ireumslnn(.es I!, to he construed flS, u Walston & Co Inc All ClI.preS51ons of opinIOn are suhJect to change Without notice ,,',\I;ton & Co. Inc. or any Officer, Director or Stockholder therl!of. mny have fill mter(!'St the seeur-Itlel hereH\ ThiS market letter B Intended and presented merely as a genernl. Informnl commentarJ, on Joy to day m.lrl-ct new'! and not us n complete analYSIS AdditIOnal InformatIOn …. Ith respect to an) securities referred to herem v. III be furmshed upon request. ''IN 301

( NEW YORK Walston &Co. – – – – – – – – I n c . – – MembeTs New York Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (SwH,Id) OFfiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRe SySTEM TABEll'S MARKET lEnER May 18, 1956 At the week's lows, both averages reached the top of strong support levels and rebounded moderately. Dow-Jones industrial average hit a low of 490.73 off the top of the 490-480 support level and the rails reacted to the top of 173-168 support shelf at 172.58. The rebound from the lows was on small volume and normal technical action would call for a retesting of the support levels perhaps next week. If the averages are able to weather this test, we might witness the start of the traditional summer rally around the end of the month and an advance to the 540-550 level in the industrials and 190-200 in the rails. A failure to hold would indicate the start of a long t-han a sharp .. On for example, the 480 level is an important point to watch. The 200-day movin average now stands at about that level as does the uptrend line connecting the October and January lows. A downside penetration of the 480 level would most likely indicate a lengthy consolidation period with a probable low of around 450-440. It would be a period very similar to 1951-1953 with the aver ages holding in a broad trading area while individual issues pursue their ow diverse patterns. In a nutshell,the action of individual issues will continu to be of much more importance than that of the averages. At last week's lows for example, many of the issues in my recommended list were higher than they were on April 6th, despite the fact that the averages were thirty-five point lower. A review of my recommended list is continued below. CHICAGO CORP.(25)is still holding in the broad 21-27 trading area in which it has held for two years. An upside breakout of this area would have considerable technical significance and indicate a possible rise to the 40- 45 level over the longer term. 1956 earnings should rise over the 1.67 a share reported in 1955 and the dividend,now 257 quarterly,should at least be maintained. Active drilling, exploration and important natural gas pro- duction and reserves present good long term potentials. CITIES SERVICE (66) originally entered my recommended list at 38.The recent high was 70 3!4.The technical upside objective for the intermediate term seeminglygppd support at the 62-60 level. Wider profit margins will pi6bab 10'be – s-howllTor 1956'''ar the-extensi ve – modernization,exploration and development program which Cities Service has undertaken since the war begins to show up in earnings.Fair trade of gaso- line at the retail level may also remove a persistent marketing problem. COLGATE PALMOLIVE (57) has done little marketwise for a long time.ln fact,it has held in the broad 51-64 area since late 1954.While there is no indication of an immediate move, the broad potential base pattern, from a technical point of view, indicates a possible long term advance to 70-75 . followed by 100. Yield is attractive at 5.3. Impetus for an upside break- out of this base could well be provided by recent improving competitive po- sition.While the well maintained earnings of 5.47 appear to make the stock statistically cheap,foreign business is important and increasing. EAGLE PICHER CO. (42) which originally entered my list at 22,reached a high of 47, but still indicates higher levels over the longer term. Recent has brought the stock down close to the strong support level at 42- 40. The technical upside objectjve is the broad 61-77 area over the longer term. First quarter earnings of 1.04 vs. 717 in the corresponding quarter – last year, indicate a strong possibility of further annual earnings increas- es as the company transforms itself from a mining and smelting to a fabri- cating operation. Although sales may reflect the decline in order output, profitmargins,should.improve due.to reduced operating costs at the new sulphuric acid plant.-The historic payout ratio leads totl1.e belierthat dividends should be increased slightly at some time during the year. FOOD MACHINERY (66) was recommended at 51 earlier in the year. The recent high was 71. This issue has a most attractive technical pattern for the longer term with a price potential confriderably above present levels. The intermediate term indication is the 75-85 range. Continue to hold and add to holdings on minor weakness. The first quarter of 1956 saw the com- rany obtain peak results. Sales were up 13 and net increased to 1.19 a share from l.Ol,despite a 25 drop in defense shipments. Backlog in the division increased and it was stated by the management that volume for 1956 will probably match last year's. EDMUND vi. TABELL & CO.INC. Thl'l m.lrl.et letter 18 nut, and under no circumstances is to be construed as, nn ofTer to sell or a sohcltntlOn to buy any securities referred to herein The inforfi1alion contulfi(';.i herem ll not guarnntecd liS aCCUf3CY Uf completlmess nnd the furnnrnlng thQreQf i; nut, and und(r no cIrcumstances IS to beconstrucd as, a reprC8cntlliIDn \l.talston & Co, Inc All l''lpre;Slom, of oplfilUn nrc subJect to change without notu'e vulton & Co, Inc, or any Officer, Director or Stockholder thereof, m3Y have .w mterest In the securitieS mentioned herem Thl'! market letter IS mtended and )lreented merely as a general, mformal eommentary on day to day ne…. s and not as a complete an3lysis AdditIOnal mformatlon with respect to any sccuillieb referred to herein Will be furmshed upon request V. N 301 \

Walston &Co. -l – – – – I n c . MEMBERS NEW YORK STOCK EXCHANGE AND OTHER. LEAOING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA' LOS ANGELES SAN FRANCISCO LUGANO (Sw;t,ee,d) OFFICES COAST TO COAST CONNECTECo BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER May 22, 1956 Selectivity is probably the most &tusEdword in the lexicon of market letter writers. Nevertheless, it remains the key to today's market. In recent weeks, the Dow-Jones industrial average has declined from an April 9th high of 524.37 to today's low of 481,86. To go back to the last time when the averages were at this level we must go back to Friday, February 24th when averages closed at 485.66. It is interesting to compare the close of that day in selective issues with today's close stock Close May 22nd Close Feb. 24th Joy Manufacturing 50 1/2 39 3/,8' Dresser Industries 68 1/2 5e 3/4 General Railway Signal 80 5/8 69 1/4 Merck, -rnc. , 31 1/4, 26 3/4, Black;.. & Decker 41 1./2 '3l1.. American Viscose u. S. Steel International Harvester Westinghouse Electric 37 54 5/8 34 3/4 53 1/2 50 57 1/4 37 7/8 58 7/8 ThUS, the key to investment timing remains the same. Instead of trying to gauge the action of the market, the energies of the analyst are better devoted to selecting stocks Which will outperform the market. It is still necessary, however, to gauge investment climate. Many factors have been cited to explain the decline in stocks such as dropping auto production, the possibility of a steel strike, a falling bond market, and a host of others. Without going into these fundamental conditions we will attempt to point out a few technical factors which may effect the mar- ket trend. At today's low, the Dow-Jones industrials were dangerously close to a trend line connecting the September 1955 and February 1956 lows.They were also close to the 200-day moving average. Fenetration of these two lines could be said to have considerable significance insofar as the averages are concerned, and a decisive downside breakout would probably end the bull market cycle which began in 1953. As we have tried to point out in the paragraph on selectivity above,this does not necessarily indicate the end of the world — or even a 1946 type market break. Economists such as Sumner Slichter have pointed out that we may have reached the stage in a managed economy where different industries undergo recessions at different times, considerably smoothing the traditional business cycle. It is just possible that this type of action may be reflected in the stock market as indeed it has been reflected in the examples outlined above. The result would be a 1951-53 type market with opportunities continuing for the purchase of carefully selected securities. It is certainly not the intention of this letter to subscribe to any sort of new era thinking. We must point out, however, that in the post-war years prcponents of the rolling readjustment theory have been proved righter than the boom or bust theories. History will ultimately indicate whether or not the market signals have finally been concurred. Meanwhile, it is the function cf this letter to attempt to choose securities and groups which have out-performed thegeneral market regardless of trend. hccording to relative strength studies, the following groups should behave as indicated below FAVORABLE Air-conditioning, Building,Business Machines, Cement, Drug1, Electrical Equip., Gas,Machinery,Oil,Paper, Rails. GOOD ACTION BUT HIGH Aluminum, Glass Containers, Rail EqUipment, NEUTRJ,L Aircrafts, Brass, Chemicals, Communication,Finance, Food Chains,Food Products, Meat Packing,Mining & Smelting, Rubber, Steel,Sugar, Tobacco, Utilities. POOR ACTION BUT H1PROVING Airlines, Coal, Electronics, Movies, Soft Drink, Tin Cans. UNFAVOR''.BLE Autos, Auto Equipment, Farm Machinery, Fertilizer, Liquor, Retail Chains, Textiles. EDMUND W. TJJ3ELL WALSTON & CO.INC. TIII memorandum II not to be construed liS ,111\ offer or ol,cllallon of offers to buy or uell any seCUrities From time to hme W,,'iI()n & Co, or any pdrtner thereof may 1I,,e II,! Interest ,n some or of thll! Itc.untles mentioned IIereln The foregOing mterl,lI has been prepared b.,. us .n a mltter 01 Information only It IS based upon mform!lt,on believed rell!lble but not neceut!lf,ly complete, '5 not gUII!Inleec;t u t!lccu!!Ite or fin!al, !and i5 not 'ntended to foreclou 'ndependent ,nqulrV u , i. t,

rr. Walston &- Co. – – – – I n c . Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,.,lond) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER May 25, 1956 The 490-480 support level in the Dow-Jones industrial average failed to halt the selling and the average dropped to a low of 469.31 on Friday, , a decline of approximately fifty-five pOints from the April high of 524.37. This just about equals the Eisenhower decline of September-October in pOint , \ although the percentage decline is somewhat smaller. The rail average also dropped below its 173-168 support to reach a low of 164.23. Considering the scope of the decline, volume was relatively small with no single trading sess'ion 'even''reach!ng the three-mi'll-i-on-share-t.ransact'ken lev,el. The industrial average not only broke the 490-480 support level but also penetrated the uptrend line connecting the October and January lows and, even more important, also broke the 200-day moving average of prices / which has held intact since the rise from 254 started in October, 1953. In / addition, the total declining volume for the past twenty-five weeks reached a new high since early 1955. All these technical indications would indicate that the market reached a top at 524.37 in early April and that thE 270 point advance of thirty months duration from the October, 1953 low of 254 has ended. The sequal should be either a 1946 type of decline of 25 or so (395 on the industrial average) or the 1951-1953 type of consolidatior in a 15 trading range (445 in the averages). Of the two alternatives, my technical work favors the probability of a 1951-1953 type of consolidation. In fact, that was the pattern for 1956 that was outlined in my annual forecast in December. At that time the industrial average was selling at 485. Based on statistical, technical and psychological factors, I 'expected highly selective action in 1956 ranging from a 520 top in the Dow-Jones in- dustrials to a low of 430-420. I further said that the broad economic pat- tern and the more intelligent approach to investing that has prevailed in recent years favors a possible piecemeal readjustment over a period of a year or so rather than a sharp decline. In the 1951-1953 market, the aver- . age s tw,o someind i were advancing while others were declining. While all of was happening, other groups were resting and slowly forming reaccumulation patterns in pre- paration for the 1953-1956 rise. I see no particular reason to materially change the forecast today. The average advanced to about the 520 level (524.37 in April) and has now declined to about 470. It turn out that my guess of five months ago of an eventual low of 430-420 may be too low now that more technical data is available. The whole 470-420 area is one of broad support in which the average has swung up and down for over a year. The eventual low could be anywhere in this broad range. For the nearer term, the low will probably be around the 460 level. My intermediate term technical indicator, which signalled a sell in late March, has not yet given a buy signal despite the sharp decline, but is in a position to do so in the next week or two. After the ensuing rally, the patterns will be clearer as to the probable low of the broad consolidating area in which the market may hold for a considerable period of time. All of the above is purely of academic interest and is written to avoid answering the inevitable question of vlhat is the market going to do The sooner we realize that there is no longer a stock market in the former sense of the word but rather a market of fifteen-hundred or more 1isted stocks, the s,ooner will our investment and speculative objectives become clearer. In – the'market, I envision over -the foreseeable future there will be plenty of opportunity for price appreciation in selected issues as well as the risk of decline in others. The stocks I like are in my recommended list. Fortunately, they have, in the main, shown better than average action both on the advance and decline. and deleted. The list will be reviewed continuously and issues added EDMUND vi. TABELL HAISTON & CO. INC. ThIS market Jetter lS not nnd under no circumstances IS to he construed as, an offer to seJl or n sohcltatlOn to buy any securities referred to herem The mformntlon contnined herem IS not ns to nccurnCY or CQmpieteness and the thereoC IS not, and under no Circumstances IS to be construedhn1d8 I Walston & Co Inc Ail ('xprCSSIt)ns of opinion are Rubect to change without notIce. \\'1118ton & Co, Inc, or I1ny Officer, Director or tock 0 cr ereo, may an Interest thc secunbe! mcntlOned herein ThiS market letter 1; intended and prcllcnted merely as a Iteneral, un to day llC…. S and not I\S a complete Addltionalmformatl)n 'ftith respect to an) securities referred to heteln 'Ill be furnished upon rcques

r r; Wdlston &Co.—-Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,tmld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lEnER June 1, 1956 After reaching lows of 463.85 and 159.31 on Monday, both averages raIl sharply with the Dow-Jones industrials reaching 483.53 and the rails 167.08 Volume was relatlvely small on both the decline and on the recovery. A buy signal was given on my indicator on Tuesday, buc the r covery was a bit rapid and I would expect another testing of the lows short It is possible that another technical buy signal will be given around June From a longer term point of view, I expect the market to remain in a trading area for quite some time. It is probable thatfue industrial average will pivot around the 480 level with swings of roughly fort;\' points both above and below this focal pOint. Individual stock selection will be most . important. Repl'infe-d' be low 'is 'my -recommelilied- lfsY of-issues issues should be held and added to at or slightly above the support levels noted. Appended also is a list of new suggestions which will be added to thE recommended list if the price levels mentioned are reached. d Present Price Price Recom. Alleghany Corp. Allegheny Ludlum S Amer. Potash 9 37 46 3 3/4 16 16 Barber eil Black & Decker Butler Bros. Calgary & Edmonton Chain Belt 73 42 26 26 59 19 23 16 Chicago Corp. Cities Service 64 38 Colgate-Palmolive 56 60 Cornell-Dubilier 31 21 Cutler Hammer 101 57 Dow Chemical 67 39 Dresser Industries Eagle plcher'- 't – ,- '.2323 – — Food Machinery 65 General Rwy.Signal Hewitt-Robins 80 40 Joy Mfg. 50 Magma Copp er 106 Masonite 45 Monsanto Chemical 41 Montana-Dakota Util. 25 Pacific Petroleum 16 Pan American-World Air 19 Simmons Co. 50 Sinclair Oil 65 vies tern Pacific 74 Westinghouse Air Brake 32 Yale & Towne 30 51 59 25 23 75 41 31 26 11 12 36 46 73 33 18 Yield Advice Buy-Hold.Support at 8 4.0 Buy. Support at 36-33. 2.2 Buy-Hold. Support 45-43. 3.4 Buy-Hold. Support 70-66. 2.9 Support 40-38. 5.4 Buy-Hold. Support 25-23. 0.4 Buy-Hold. Support 23-22. 4.4 Buy-Hold. Support 65-60. 4.2 Buy-Hold. Support 23-22. 3.8 Buy-Hold. Support 60-58. 5.4 Buy-Hold. Support 55-50. 5.5 Buy-Hold. Support 30-28. 3.6 Buy-Hold. Support 90-87. 1.5 Buy-Hold. Support 65-60. ,4 ,lJ. .tluYHo.ld .SUPJl,OXt 66-6.4. 4.5 3.1 Buy-Hold. Support 60-57. 5.0 Support 78-75. 5.0 Prospectus issue. 3.7 Buy-Hold. Support 48-45. Buy-Hold. Support 105-95. 3.8 Buy-Hold. Support 42-40. 2.4 Buy-Hold. Support 40-38. 4.0 Buy-Hold. Support 24. Buy-Hold. Support 15. 4.2 Buy-Hold. Support 18-17. 6.0 Buy-Hold. Support 51-49. 4.6 Buy-Hold. Support 62-60. .4.1 Buy-Hold. Support 70-67 3.7 Support 30-27. 5.0 Buy-Hold. Support 28-26. In addition following issues, to if the above, I available at would also advise the the following prices. purchase of the Present Price Amerada' 104 J Blaw-Knox Bristol-Myers 36 34 British Amer.Oil 40 Eastern Airlines 47 Fansteel 47 Gen.Port.Cement 60 Hooker Electro. 42 Imperial Oil 49 Inter.Nickel 93 Inter.Petroleum 34 Johns Manville 50 Buying Range 103-99 33-32 33-3138-36 47-45 43-42 56-54 40-38 45-43 90-85 50-48 Link Belt National Distil. Norfolk & YJest. Pittston Co. Royal McBee Sunray Mid-Cont. Sylvania Elec. Tennessee Corp. United Airlines u. S. Lines Present Price -48 63 25 64 48 33 26 50 51 39 26 EDMUND vi. TABELL Buying Range 46 44 60-58 24-23 64-62 45-43 31-29 25-24 49-47 50-48 36-35 26-24 h t h 'hmarket letter IS not, Rnd under no circumstances IS to be construed S' n 0.IT r IIr orr q.-llllitSilffi'rf'thTb.'lnoG1Cc'Jllrifihl(1caf,(!brteccdotnosthreureedmfl..,TahrecpmrcfsOcinmt.alttiioolnl contamed herem IS not guaranteed ns to accuracy or hnd t e 1by V.'aio;ton & Co. Inc All expresSIOns of oPh!llon nrThu JCC ktOt s…. Inf t e & Co Inc or !lny presented mere!) as general, Director or Stuckholder thereof, may commentary on dny to dny marhet h!Jnewes ,dIlnl dIn1t\eorteasst nIncothmepfiejctccurnlllnea!jYSmIS,nAdondI',dIOnl!. I u. .. ct Ito referred to herein \\ III he furnished upon request ''iN ;101

'I 'I 1 NEW YORK Walston &CO. Inc. Membe1'S New York Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (SwH,Id) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER June 8, 1956 ,' ,i i'Ii, 1,\ ,I !I ! I, After reaching a high of 485.82 on Tuesday, a recovery of over twenty points from the May 28th low of 463.85, the industrial average dipped to 467.99 on Friday and may be rn the expected process of testing the May low Ability to hold above the 463-458 support level would indicate a possible rally to 495-500. I'. decline below the support range would most likely indi- cate 440-420. Still continue to believe that the market will hold in a wide 100-point trading area for a considerable period of time, preparatory to building a base for the next phase of the advance similar to the 1953-1956 rise. consQ.LidatiRl'LperJod,tbe. a3J'Lragesc,an-Ee. ' more or less'ignore'd while-attention'-rs focussed on individual issues. One of the basic technical tools is the measurement of relative strength. This measurement may be defined as an attempt to discover what stocks are outperforming the general market by comparing the action 'of indi vidual stocks to that of an average. Usually,strong stocks continue to be market leaders for a considerable period of time. Many complicated charts and griphs have been devised for such measurements. It is often pOSSible, however, to make simple yet illuminating relative strength comparisons by simply comparing the prices of stocks at two different periods in a market cycle when average prices were about the same. Such a comparison is afforded by comparing .the stock prices on May 28th when the Dow-Jones Industrial average made an intra-day low of 463.85 with prices at their January-February lows when the Dow-Jones made a low of 458.21, within about 1 of the subsequent May low. The table below lists every common stock on the New York Stock Exchange which, at its low price on May 28th, was approximately 10 or more above its January or February low. Issues marked with a were recommended for purchase in our recommended list published January 27th. A further test is being provided by the present decline, Stocks which hold above the recent May low could r -. . — , May – Jan-Feb. May 28th Low Low Low Low Addressograph-Multi. 108 Air Reduction Allegheny Lud. 36 3/8 30 Alum.Co. of Amer. 82 Aluminium, Ltd. American Bosch 9196 7//8 12 Amer.Broad-Para. American Chain 24 5/8 38 1/2 Amer.Encaustic Tile 13 1/2 Amer.European Sec. 35 3/8 Amer. Export Line 17 3/8 Amer. Gas & Elec. 47 3/8 Amer.Hawaiian S.S. Amer. Hide & Leath. 863 1/2 Amer.Home Frod. 84 1/2 Amer.Mach. & Fdry Amer. Molasses American NeVIS Amer.Shipbuilding … Amer. Steel Fdry Jmaconda Copper Anaconda Wire & C AFil Produc ts Argo Oil Armour 24 1/8 13 1/8 28 1/2 .39 1/4 65 2i63 1/4 15 35//48 Associates Inv. 55 Atlantic Coast Line Baltimore & Ohio Barber Oil Barker Bros. 43 3/8 41 3/4 60 20 1/4 132 41 3/8 35 1/8 106 1/2 118 20 7/8 29 7/8 42 1/2 17 3/4 40 20 3/4 52 5/8 107 5 121 1/2 26 15 31 775///888 66 1/4 43 3/8 72 1/8 73 7/8 19 61 31//24 54 1/4 46 3/4 72 1/2 25 1/4 Bell & Howell 28 1/4 Benef. Finance 18 5/8 Best Foods 44 3/4 Black & Deck. 32 1/8 Blaw-Knox 28 1/2 Boeing Air. 69 1/8 Borg Vlarner 38 1/2 Bristol Myers 28 3/8 Brunswick-Balke 25 j/8 Bucyrus Erie 38 1/8 Buffalo Forge 27 Burroughs Add. 28 1/2 Butler Bros. Callahan Zinc Carborundum 22 1/2 5 1/4 31 1/2 Caterpillar Tr. 55 1/2 Celotex 34 Cent. & So.W. 33,1/2 Certain-teed Chain Belt 22-'1/4 54 1/2 Checker Cab 7 Chic 37 Chic.Pneu.Tool 44 1/2 Chic.Yellow Cab 10 7/8 Chickasha Cotton 20 1/4 Chile Copper 51 1/2 Cincinnati Mill. 37 1/4 Cities Service 54 City Investing 12 3/4 City Products 30 40 20 1/2 51 1/2 41 1/2 33 77 1/2 42 3/4 32 3/8 34 1/4 42 1/4 31 36 5/8 265 11//28 37 1/2 70 1/4 39 1/4 36 7/8 '28 'V8-' 67 3/4 9 1/4 42 1/4 55 1/4 13 7/8 6270 45 60 1/4 14 5/8 36 1/2 ThiS market letter IS not and under no 1'1 to he construed as, un offer to sell or a 8ohcltatIOn to buy nny sccuntlCs referred to herem. The mformatlOn herein IS not as to accuracy or completeness and the furm'lhmg- thereof I not, and under no circumstance'! IS to be reresenrtatlon Iby Wlliston & Co 'VN aglhn\e an Interest Inc the All e'(presslOn of opinIOn are subJcct to change Without nohce secunbC'l ment1med herein ThIS mllrh.et Jetter IS mtenderl 'l,nil Wliiston pr('scntctl 8..- Co, Inc, merely as a or any Offlccr, Director or toc general, mformnl commentfilY on (nyert0 reo, (fly r nev.s anrl not a complete nnalysls Addltl)nallnformutlon v.lth respect to any &('Clllltle; referred to here n WII! be furlllshcd upon request. .. I …… , l.i I i ' ,, I, .- Jan-Feb Low Clev.Elec.Ill. 34 1/4 Cons. Copper. 17 3/8 Continental Can 39 1/4 Continental Oil 94 Cooper Bessemer Cosden Petroleum Crown Zellerbach Cudahy Packing Curtis Publish. 25 1/2 35 3//8 53 5/ 8 734 266 Curtiss-Wright Cutler Hammer DDeenVvielbr,iRssio Grande Diamond J.lkali 1/8 26 1/4 43 1/2 Diana stores 13 3/8 Dow-Ghemica-l Dresser Ind. 49 5/8 Eastern Corp. 26 1/2 East.Stain.Steel 29 1/8 Emerson Elec. 27 Eversharp 15 1/8 Ex-Cell-O 62 1/4 Fansteel 31 Filtrol 62 Food Machinery 51 Freuhauf Trail. 25 1/4 Jamewell Co. 42i 5/8 Gardner Denver 0 Garrett Corp. 38 Garwood 6 General Cable 24 5/8 Gen'l Rwy. Signal 61 1/2 Georgia ac.Plywood 36 Gillette 40 1/8 Great No.lron Ore 25 1/2 Greenfield Tap 31 liB 85 GUll – 33 Halliburton Oil Well 58 ,1/2 Harbison \'Ialker 48 Hertz Corp. 27 3/8 Eooker Electro. 35 1/8 Hotel Corp. 5 3/4 Houdaille, Ind. 12 5/8 Houston Llgh0. 41 1/4 Hudson Man. 1 7/B Hudson Bay Mining 64 Hussmann Refrige. 32 3/4 Idaho Power 27 5/8 Interchemical Corp 47 1/4 Internat'l Nickel 7B Internat'l aper 108 Int.R.R.Cent.i.mer. 15 1/2 Internat'l Salt 94 Internat , 1 Tutil. 3B 1/4 IJsaleagnedr CMraecehkinCe oal 3313 11//82 Johnson & Johnson 67 1/4 Joy Mfg 35 liB Kaiser Alum. 34 7/8 Kansas City South 71 1/4 Koppers Co. . 52 1/4 Kroehler Mfg. 22 Link Belt 47 1/2 Liquid Carbonic 35 1/2 Loew' s J Inc. 18 7/B Lone Star Cement 64 1/4 Long Bell Lumber 35 Louis. G & E 49 3/4 Louis.& Nash. B3 1/2 Lukens Steel 42 M & M Woodwork. 21 5/8 Mack Truck Marathon 26 1/4 33 1/4 -2- May 28th Low Jan-Feb May 28th Low Low 38 3/4 19 7/8 45 1/4 111 30 3/4 Masonite McGraw -Elec. McGraw-Hill Mengel Merck 35 1/4 47 71 1/2 33 3/8 24 5/8 41 1/2 61 1/2 87 1/2 40 1/8 30 45 7/8 62 12 1/8 Mergenthaler L Mesta Machine Midland Enter. 44 5/8 49 1/4 48 54 1/4 46 1/2 58 880 43 1/28 5/ 3 4 30 52 )5 l/B -6-4- 5/8 63 1/2 31 33 1/8 31 Minn.Honeywell Minn.Mining Mission Develop. Monarch Mach. 58 70 105 130 1/4 29 5/8 34 21 1/4 24 Montana Power 39 5/8 44 5/8 Moore-McCormack IB 3/8 20 5/8 Nash–G-hat,,&-St-;-L—-1-18- -1-33 – – – Nat'l Acme 62 68 1/2 National Cash 34 liB 45 Nat'l Container 19 3/4 30 5/8 Nat'l Cylinder Gas 20 24 3/4 17 1/4 Nat' 1 Distillers 20 3/4 24 1/4 ' B3 Nat'l Gypsum 40 3/4 Nat'l Lead 453/B 53 1/2 76 1/2 91 ' 71 7/8 61 Nat'l Mall.Steel Nat'l Supply 32 3/4 37 1/4 47 3/4 63 1/4 30 5/B Newmont Mining 88 7/8 107 1/2 28 1/4 55 43 71B Northeast Cap. Norwich Pharo Ohio Oil 16 1/8 19 3/4 47 5/8 52 3/4 33 5/8 39 1/2 7 1/8 OtiS Elevator 2B 1/4 Owens Ill.Glass 33 1/4 42 61 1/4 67 3/4 77 Pacific Amer. Fish. 9 3/4 10 3/4 51 Panhandle Oil 11 12 1/2 46 1/8 Parmelee Trans. 28 7/8 Penn.-Salt 12 1/2 15 1/4 45 3/4 51 5/B 34 7/8 Pepsi-Cola 20 1/8 23 1/2 1086 1 1 //2 2 Petrol. 71 PitneY-Bowes 55 3/4 Pitts .Cons .Coal 78 3/4 91 1/4 45 53 32 1/2 3B 1/4 38 3/8 40 1/4 6 3/4 15 5/8 47 1/4 2 1/2 77 3/8 Pitts. Metal Pitts.Plate Glass Pitts Steel itt s & 'II.Va. Pittston Co Plymouth Oil Poor & Co. B 37 1/4 74 24 7/8 26 36 5/B 30 1/4 22 54 B2 3/4 27 5/8 29 1/8 45 5/B 34 29 3/4 41 3/4 Pure Oil 37 3/4 42 1/4 31 1/2 53 1/2 90 1/2 122 1/2 Reed Roller Bit R l' Mf e lance g Metals 20 1/2 1B 1/2 45 1/ B 24 1/2 25 1/8 6 /8 63 IB 3/8 121 4I 5 1/4 4400 11//22 75 3/4 45 1/2 43 7/B B2 1/4 60 l/B Rhule1ander Paper Ridgeway Corp RRoohymal&DHuatcahs RoyIaM cBee San Diego Gas Sangamo -Elec. Schering Corp Shamoon Ind. Shamrock Oil 345/B 46 34 3/4 47 39791 5/B 140327 1/2, 27 1/2 31 3//8 18 1/4 21 1 4 29 1/2 -33 44 7/B 23 3/4 52 37 33//4B 39 7/8 51 1/4 25 1/2 62 Shell Oil Signode Steel 62 1/8 77 1/4 21 5/B 27 40 1/4 22 1/8 72 Simonds Saw Sinc lair Oil Smith Corona 55 1/2 64 55 5/8 62 1/2 24 5/8 36 1/4 75 1/2 Socony-Mobil 61 1/4 69 3/4 57 1/2 Southern Railway 98 1/2 108 93 1/2 Spencer Kellogg 17 1/4 20 7/B 72 3/4 33 Square D Stand .Gas & Elec 51 1/2 61 9 5/8 10 3/4 31 Stand.Oil of Cal. B7 1/2 95 1/2 41 1/2 -3Jan.-Feb. May 28th Low Low Stand.Oil of Indiana 48 1/2 55 1/4 Stand.Oil of N.J. 49 1/2 54 1/8 Starrett, L.S. 43 3/4 51 Stauffer Chemical S,unbeam..– – 51 1/2 ,,-32 62 1/2 — Sylvarlia Elec. 42 – 47 3/4 Tennessee Corp. 45 49 Texas Gulf rod. 38 1/2 42' 1/8 Texas Pac. Coal 33 3/4 40 Texas Pac. R.R. 150 171 Texas utilities 34 5/8 37 1/2 Thatcher Mfg. 15 3/8 18 3/4 Thermoid 10 3/4 12 1/2 Thompson Prod. 48 3/8 53 3/4 Tide Water Assoc.Oil 33 39 Timken Roller Bear. 62 1/4 69 Trane Co. 44 1/2 56 1/4 Truax Traer 25 27 1/2 Union Bag 31 1/2 39 3/4 United Carbon 48 1/4 56 3/4 United Elec. Coal 21 26 U.S. & Fgn. Sec. 28 1/8 34 U.S. Freight 54 62 U.S. Gypsum 54 1/2 60 1/2 U.S. Lines 22 5/8 25 5/8 – U.S. lywood 37 3/8 41 1/8 United \'/allpaper 1 3/4 2 Univ.Cyclops Steel 41 1/4 48 1/2 Univ.Leaf Tobacco 32 35 3/4 Vanadium 38 1/2 44 1/2 Vert.Camaguey Sugar 7 7 3/4 Virginia Elec. & Pro 38 1/4 43 7/8 Virginian Rwy 46 3/8 61 1/.4 Vulcan Detinning 16 5/8 19 Walworth 12 3/4 14 7/8 Warner Bros. 18 1/2 20 3/4 Warren Petroleum 65 1/4 86 v/aukesha Motors 25 1/2 28 1/4 Wayne Knitting 22 24 Wayne Pump 19 1/8 21 1/2 West Kentucky Coal 25 3/4 34 ,vest Virginia Pulp & Paper 42 3/4 56 Western Maryland 47 54 1/2 vlestern Pacific 63 70 1/2 vlhite Motors 36 1/4 40 3/8 Wilcox 'Oil 30 1/8 50 — Wilson & Co 12 5/8 14 7/8 Wilson Jones 14 1/4 17 1/8 Worthington Corp. 41 1/8 46 1/4 Young Spring & Wire 24 27 EDMUND vi. T,BELL WALSTON & CO. INC. ,'-. /.0

Walston &- Co. Inc. MEMBERS NEW YORK STOCK EXCHANGE AND OTHER lEADING STOCI( AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO (Switmld I OFfiCES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL INSTITUTIONAL LETTER June 14, 1956 Looking at the current gyrations of the stock market, it is very easy to attach a great deal of importance to PreSident Eisenhower's recent ill- ness and the possibility that he may not now be able to run for a second term. Viewed in the context of market happenings over the past fourteen months, however, it would appear that the political situation does not alter the fundamental long range investment climate. It is rather instructive to look at the action of the Dow-Jones in- dustrial average,over the past fourteen months as shown on a geometric scale which shows moves' in a percentage rather than a dollar amplitude. In April of 1955 the averages broke through a March high of 421.83. They broke back below this high for a short time then rose sharply to 489.84 in September of last year. Mr. Eisenhower's illness then drove the averages to an Octo-, ber low of 433.19, when it became obvious that Mr. Eisenhower would not run for a second terll'\l. Then after spending four months attempting to break through resistance at 490, the averages continued to a high in April, this year, of 522.18. They have since declined to a low of 463.85 and are now at 487.08. What all this proves is that for most of the past fourteen months the Dow-Jones average has held approximately 25 trading range. There is no need, however, to cite to the professional investor the terrifically diverse action which has characterized the market during this time. Many stocks are now selling at close to their low,s for the past four- teen months and many even today are posting newall-time –highs. Thus the market action for more than a year has been very similar to that encounter- ed in 1951-53. As has been reiterated in this letter many times, this action can be expected to continue. It is difficult to enviSion a roaring bull market for the next year or so since it must be conceded that many stocks are adequately priced and that there is likely to be no drastic improvement in the business picture such as witnessed in 1954-55. It is, however, obvious to the security analyst who seeks values that many such are still available and that in many cases, despite the general business picture, earnings in 1956-57 may be increased sharply. It would thus seem that the task of the portfolio manager over the next year or so will be one of weeding out equities which have become unattractive or over-priced and replacing them with stocks which still appear to offer sound value and appreciation possibilities. It will be the attempt of this letter to pinpoint securities which can be ex- pected to act worse than the general market over the coming months and to attempt to pick out securities inJgroups which can be expected to outperforn the general list. ' The following equities all seem to be improving in quality, which should justify their inclusion in institutional portfolios. In each case, technical and fundamental factors seem to indicate higher prices and they are accordingly recommended for purchase. Allegheny Ludlum Steel Blaw-Knox,Co. Certainteed Products Dresser Industries Eastern Airlines Food Machinery & Chemical Corp. General Railway Signal Hewitt-Robins, Inc. International Nickel' Joy Manufacturing Masonite Corp Monsanto Chemical Richfield 011 Sylvania Electric Products United Shoe Machinery EDMUND W. TABELL WALSTON & CO.INC. Th,s memorandum is lIot 10 be construed as lin offer or soliCitation of offers 10 buy or ,ell any securities from time to time Walston & Co. or any par'ner thereof, may have an inierul In some or all of the securitin mentioned herein The foregOing material has been prepared bl1 us as a matter of inlormo!llion on1r It IS baled upon ,formatoon believed reliable but not necessaily complete. IS not gUdrdnteed lIS IIccurate or flnlli. and n nat Inlended to foreclose Independenl ,nqulry

NEW YORK Walston &Co. – – – – I n c . Membe!'s New YOTk Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE ISwa,ld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER June 15, 1956 FOOD MACHINERY & CHEMICAL CORPORATION Statistics Current Market Current Dividend Current Yield ,—- ommon 'stocK 66 2.00 3.3 41 557 000 13083000 The term growth industry has been rather freely applied of late to many industries in our economy. There are a number of industries, however, for which the term may we by justly used in in the Earned per Share-1955 4.53 show a future growth substantially Sales-1955 264,619,766 in excess of gross national product over the next few years. One such Mkt. Range 1955-56 71 – 47 industry is the chemical industry. Another is convenience type food packaging. Still another is materials handling. And still another is synthe- tic rubber and petrochemicals. When a company can be found with an exceller position in all of these fields, it certainly deserves the scrutiny of the investor. When that compaqy is selling at less than 15 times 1955 earnings and less than 12 times anticipated 1956 earnings and, in addition, commands a first class investment rating, it becomes apparent that sound value is offered. Such a company is Food Machinery & Chemical Corporation. Food Machinery's business can be roughly divided into three divisions chemicals, accounting for almost 50 of volume; machinery, mostly concerned with the growing and handling of food, about 35; and military products. The important chemical operation is carried on through a number of divisions. Most important from a sales point of view is the agricultural division producing insecticides, herbicides, etc. These products can be ex- pected to have a growing demand as farming methods become more and more mechanized. pTehreo-cxo1mdpeaannyd'soBfhececro- Chemical division is an bxygen-'cfiemi'c-als, -wh-ile- important producer fhe- rnterm'ounta'ifI- Chemical Co., 90 owned, produces high quality soda ash. The Westvaco Chlor Alkali Division, now undergoing extensive modernization, produces Chlorine and Carbon Bisulphide, while Westvaco Mineral Products Division manufacture potassium phosphate compounds which are finding a growing market in liquid detergents. Chemical sales are growing in importance to Food Machinery and in 195 for the first time they accounted for over 50 of non-military sales. Total sales of chemical products for 1956 may run more than 15 ahead of last yea, It is expected that by 1960 chemicals may account for better than two-third of total volume. The machinery division produces agricultural equipment, pumps, canning and freezing machinery, and packing and packaging equipment. The last three items should attain more and more importance in line with th sharply rising trend in pre-packaged foods which afford more leisure time to the housewife. The Food Machinery story would not be complete without mention of Petro-Tex Chemical Corporation, jointly owned with Tennessee Gas Transmissic The company is an important producer of petrochemicals and recently acquirec a butadine synthetic rubber plant from the government. Food Machinery will probably receive a dividend from Petro-Tex for the first time in 1956. As can be seen, a large part of FDM's sales consist of true growth growth; sales over athree tofive year period may well be expected to reach 400 million, including the equity in Petro- Tex, as against 264 million this year. Earnings on this sales base could well approach 9 – 10 per share. For 1956, sales may approach the 300 mil lion mark with earnings between 5.25 and 5.50 per share. Based on this projection, the long term technical outlook may well be realized. The stock has an upside potential of 185 with support at 60-57. I is accordingly recommended for purchase. EDMUND W. TABELL 'vIALSTON & CO. INC '\ ThIS mnrkd letter IS not, Ilnd under no Clrcumqtllnces IS to he construed as, an offer to sell or a sohcltlltJon to buy any securities ,referred to herem. The mformatlOn \ contained herem IS not Aunranteed as to accuracY or completeness nnd the furmshlnv; thereof IS not, Id under no Circumstances IS to be construed RI, R representation 1\ by Walston & Co Inc All c..preS810ns of opinIon arc subject to change Without notIce )ylllqton & Co, Inc, or any Officer, DIrector or Stockholder thereof, may \ have an Interest the seCUritIes mentIOned herem ThiS market letter IS mtended Rnd Prcsented merely as a genernl, lllforrnlli eommentury on duy to dll)' market n.w,ndno.t….mPI.t.ana'Y''' ..'' \I