Walston &- Co. – – – – – I n c Members New YOk Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANC'SCO BASLE (Swa,.,laod) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER June 22, 1956 SYLVANIA ELECTRIC PRODUCTS. INC. Statistics The magic word electronics encompasses a number of fields. Current Market ' 1/2 One of the biggest problems for Current Dividend 2.00 the investor is obtaining repre- Current Yield 3.9 sentation across a broad spectrum of .. ' specialty whTcli-may be- affected- -, by special market or company con- ditions. Such a representation Long Term Debt 38,850,509 we believe, obtained in Sylvania i4 cum. pfd. 4.40 cum.cv.pfd. ommon 95,581 shs. 86,14'5 shs. 3,020,871 shs. Electric Products. In addition to servicing its own production, Sylvania is one Mkt. Range,1955-56 55 7/8 – 41 of the largest factors in a myriad of electronic parts and compo- Convertible into 3.05 shs. Common through 1961. nents. It produces these components not only for its own use in radios and TV sets, but also for use by other manufacturers in a wide host of fields. It is one of the largest producers of picture and vacuum tubes, plus sub-miniature tubes and special tubes for military use and industrial applications. It produces any number of small metal and wire components for use in its own tubes and those of other manufacturers; and in addition produces a number of chemical and metallurgical products which have application in a wide variety of electric uses. This across-the-board representation in a wide variety of electron- – -.ic Sylv,aniafr.omthe vag.ries ofv;ax'iousp.ortionsof. industry. For instance, when production of TV sets declines,-the number of replacement parts used tends to rise. Thus, in 1955, a year when many electronic companies were having difficulties holding their own, the com- pany was able to earn 4.29 per share vs. 2.92 per share in 1954. Syl- vania's large stake in the components business also augurs well for the future as color TV becomes more and more of a factor. Color sets are infinitely more complex than black and white sets and the servicing of these sets will require a far greater parts supply than has formerly been the case. . Sylvania's sales are hardly limited to the television field, however. Its parts are used in practically every electronics application, including computers, radar, defense work, missile systems, detection devices, etc. Its stake in the military and industrial electronics field is most important. It is agreed by most analysts that industrial application of electronics is expected to rise almost 50 over the next few years. These fields will provide ample room for Sylvania to grow in the future. A bright spot over the longer term is the company's atomic division. President Don G. Mitchell has stated that Sylvania is probably the largest concern in the field of atomic fuels and components and has projected that over a period of time the atomic energy division will become as large as Sylvania is today. A large part of Sylvania's sales today are in the lighting field. This compliments the electronics business very nicely, and, while perhaps not as dynamic from a growth standpoint, it has been and will continue to be an important and enlarging source of profit. The company is the third largest manufacturer of incandescent lamps and through astute marketing has obtained a growing position in this field. It is the second largest producer of fluorescent tubes and is devoting a good deal of research to the development of new tubes for fluorescent lighting. In 1946, the company entered the flash-bulb –' ThIS market Jettl'r IS not, and under no clTcumstnnces IS to he construed as. an offer to sell or a 6ohcltat\on to huy any seCUrlt.les lcferred to herem The informatIOn c(lntlllned herem IS not J,tuarantced as to accuracy or completeness and the furnishing thereof IS not, and under no ClrC\lmstance! IS to beconst.ruetJ as, a by Walston & Cn Inc All expresslon; of opimon nrc subJeet to chanllc ithout notice Walston & Co. Inc, or any Officer, Director or Stockhold(r thereo may h.l\c.ln Interest the! securities mentIOned herem ThiS market letter IS Intended and (Jlcscnted merely IlS .1 ,,encrnl, 1nfO! m.al commentary on dJ.Y to day J.ntI ilot IlS a complete .maIY!;ls Additional informatIOn With respect to an), secUrities referred to herem Will be furnished UjlOn request 3 –. -2- business and this division has grown astoundingly as expanded leisure time made the nation photography conscious. In the short space of ten years Sylvania has become the largest producer of these bulbs. It can thus be seen that Sylvania dominant Straaaling-the-fluge e-lectronics field;-not only throug;J1Hi-own -pro- duction but its services to other manufacturers. This position has been achieved under the astute guidance of President Mitchell and a capable staff and it is considered that Sylvania's management has been one of the most dynamic in the electronics or in any other industry.Under the aegis of Mr. Mitchell, sales have increased more than five-fold since the war and net income has increased at an even greater rate. Earnings for the first quarter were 1.28 per COffimon share, leading to an estimate of better than 5.00 earning power for 1956. With the improving background for the entire electronics industry, Syl- vania figures to show further growth in the years ahead. Color TV, which should reach a mass market this Fall, will have important im- plications, both for complete sets and component parts. The use of electronic equipment in national defense will continue to grow as will industrial electronics automation. Over the longer term atomic energy provides a huge potential. Technically, the stock has a long term objective of 75-80, with support just under the current market. It is recommended as a purchase as giving representation in one of America's foremost industries. – – –EDMUND W. TABELL WALSTON & CO.INC. AWTAMB ,

Walston &- Co, Inc. Memben New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swihed.,dl OffiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET lEnER June 29, 1956 In a slow, leisurely fashion the market has moved ahead rather nicely since the May 28th low of 463.85. In a month, the industrial average has rallied over 30 pOints to Thursday's high of 494.34. The market has now recovered approximately half of the sixty-point decline from the April high of 524.37. The sixty-point April-May decline was accomplished in two months. The market may have enough momentum to carry somewhat higher, but there is heavy overhead supply at 500-520 and I vlould not expect this supply to be penetrated on the first attempt. I continue to look for a selective trading market for a long time to ,c.ome I ,!lave peit.era ted-constant-ly ,,,;r continue -to-loek-for ding area very similar to that witnessed in 1951-1953 for possibly six months or a year longer. The upper limit will be around the 525 level of April. The lower limit will depend on the state of President Eisenhower's health, but I would not expect it to be below the October low of 433.19, with a good chance that the January and May lows of around 460 may again hold on any subsequent decline. During this period, individual stocks will move in patterns of their own as dictated by earnings, dividends and outlook. It will be a period of neither wide advance nor broad decline in the general market, but a period in which individual stocks may fluctuate widely. It will be a period in which the more informed investor or speculator may fare rather nicely but in which the uninformed participant may not do so well. In 1951-1953, it will be remembered that almost all the blue chip growth stocks rested and consolidated for a period of about two years. This was because the advance from the 1949 lows was rather rapid and a resting period was needed to allow earnings and dividends to catch up with prices and, from a technical viewpoint, for the stocks to build up a new accumulation base prior to the few illustrations are given below. 1949 Low 1951-53 Range Time In Months 1955-56 High .A.luminum-GoTG-f. Corning Glass Dow Chemical DuPont Minn.-Honeywell Minnesota Mining National Lead Scott Paper Union Carbide – 8 14 1/4 43 1/2 10 7/8 8 1/4 8 1/2 11 1/2 33 3/4 35–25 10 2-80 3J-3 27-20 33-26 29-24 72-55 .. 29 22 28 26 28 26 22 28 87 1/2 77 1/2 249 3/4 78 3/4 75 1/2 105 75 1/2 131 I believe this performance will be repeated over the next six months or a year. Timing will be different on each individual issue, of course. For example, duPont has already held in a trading area between 249 and 198 for twelve months. This 20 trading is about the same as the 102-80 trading area of 1951-1953 of twenty-eight months. DuPont has already formed a size- able base with an upside potential of 350. This pattern may, of course, be broadened for six months or a year with a correspondingly higher indication. Some issues have just started to form this pattern, so their eventual upside emergence may be later. It is difficult to pick out groups and discuss their stage of develop- ment because quite often individual issues in each group have diverse pat- terns. The oil group is a good example. Some issues have reached their upside obj ec tive and need restandConsolldaion .– Others still indicate some- what higher levels and still others have just started to move and still in- dicate a very good appreciation potential. All oil stocks have one thing in common, however. They have little downside risk and should be patiently held for further long term appreciation. ' Broadly speaking, the following groups have already formed good bases which may, of course, broaden. They are air-conditioning, airlines, food chains, retail stores, steels, drugs, tobaccos, natural gas. A prolonged trading area for a year or so relieved only by upward moves in a few special issues may appear to be a dull prospect.That is one vlay of looking at it. I prefer to say that the next six months or a year will be the last opportunity to buy the market at this level before a move to.a higher plateau. –''—-h herem Thei;;o;',;.!This market letter IS not, and under no circumstances IS to e eons ru…… as, an 0 or 0 se J'jTi't!''-Iii/IliMrtiJ.N.f-'-toUUu.i;,;h.a.nty\i);t.lNmtoheconstotruednsareprIensfeonrlmaatJtioonn cunt!\lrled herelll IS not guarnlltced as to aCcuracy or completeness and the thewo I ti'l! n or Stockholder thereof rray Ithee and not ns II complete nnUlyblb AdditIOnal mformatlOn with rebpcct to nny sc.urltles referred to herem will be urJll!! commcntn on dclY to (ny upon rcques II , -2- Furthermore, the proven reserves figures tell only a part of the story. Panhandle recently added one-half trillion cubic feet to its reserves through an ingenious program of tapping deeper strata below already exploited fields. Currently, some 370,000 additional acres still await this deeper drilling test. A gigantic amount of additional gas could well be proven through this program alone. Some question arises as to the future treatment of these large oil re- serves. Until April, 1954, it was required that the value of reserves be treated as part of the rate base so that Panhandle was able to earn only a limited, regulated rate on gas produced. At that time, the Federal Power .. – Commission handed down its famous Fair Field rice' decision, -panhancn 'I'hlS'd'eds-ion-;–in which-shea.d. , parated the transmission and producing properties and allowed Panhandle to take the average field price of its gas as a cost ,for rate-making purposes on the transmission business. In December, however, the U.S. Court of Appeals remanded the decision back to the FF'C. Panhandle, of course, appealed to the Supreme Court which has, as yet, taken no action. At this point, the problem could be solved in one of two ways. First of all, the Supreme Court could hand down a favorable decision.Secondly, some form of the Harris-Fulbright bill, vetoed this year by President Eisenhower, could be passed next year. This bill provided for allowance of the fair field price. Either legislative or judicial action seems likely since the old system obviously penelizes Panhandle's gas business to the advantage of straight producers. If such action were not forthcoming it is possible that some form of separation of the producing and transmitting properties would have to occur. With the question of permitted rates still somewhat up in the air, Fanhandle, on January 1, 1955, raised its gas rate under bond and,during last year, so collected some 7.250,000. During March of this year Panhandle was ordered to refund to its customers a prior collected-underbond increase, but only a fraction of 8.6 million so refunded represented tax-savings ,contingency reserves, and reduction in gas contract prices. In the unfortunate event that the company was forced to refund the second increase, a large part could probably be taken care of in the same manner. In addition to production and transmission, anhandle has still another important property, a 40 interest in National Petro-Chemicals Corporation, a major producer of polyethylene plastic, ethyl alcohol and liquefied petroleum gases. Currently earnings from this source – which are, of course, not consolidated – are understood to be running at the rate of about 50 cents per Panhandle share and increasing profitability is foreseen for 1957. The remaining 60 of National Petro-Chemicals is owned by National Distillers which has outstanding some 8,500,000 common shares as compared with Panhandle's 3,500,000. 'I'hus, as earnings improve, a large part of the increase will accrue to Panhandle. In summary, it is felt that 'anhandle common is distinctly undervalued for three reasons 1. Its extensive holdings of natural gas reserves. 2. Its highly profitable gas transmission business. 3. Its growing stake in the petro-chemical field. — This favorable outlook is reinforced by an outstanding technical position. Balanced against these favorable factors is the uncertainty with respect to treatment of reserves by government regulatory agencies. It 1s felt that this uncertainty will be resolved in.cne way or another within the not-too-distant future. At that time, we feel the stock has an excellent chance of selling at a much higher price which will adequately reflect the factorsmentioned above. EDMUND VI. TABELL HAlSTON & CO. INC. awtamb

Walston &- Co.———Inc.– M embeTS New Y07'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,'ml.nd OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET lETTER July.6, 1956 PANHANDLE EASTERN PIPE LINE CO. Statistics Current Market Current Dividend Current Yield 92 3.00 3.3 When good news or good earnings are expected from a company in the midst of a bull market,the general tendency is for the price Funded Debt-Parent 138 801,000 of the stock to advance rather discount.lng the goodkI'e- 4 Cum.Pfd.Stock (100 par) 119,880 shs. in advance. When the pro- Common Stock 3 379 332 shs Jected finally takes place, often the stock will hold in a narrow Operating Revenues-1956-E 110,000,000 Operating Revenues-1955 98,800,000 Earnings per Share-1956-E Earned per Share-1955 6.50 5.01 Market Range-1956-53 94 3/4 – 64 1/2 trading range for a long period afterward, digesting the advance in price. Upon further improvement in the status of the company, this narrow trading range often forms a springboard for a new major advance in price. Such will be the case, we believe, with Panhandle East- ern Pipe Line. In early 1953, Panhandle made a new high at 88. In the summer of 1953 the stock reacted sharply, making a low of 65. The stock then held within these limits for three years, and only last Monday reached a new high. . . From a technical viewpoint, upside implications of the three-year base are very interesting rver the very long term, and even the in- . termediate tives are consider,ably….abolfe present levels. The three-year consolidating area must now be considered as support, vlith strong resistance to any reaction being shoVin at 85-80. Panhandle's original rise to 88 was due, in great part, to fundamentals, as Vias the subsequent trading range in which the stock held. The company's operating revenues rose from 36 million in 1949 to 91 million in 1952 and 95 million in 1953 as the company undertook a huge expansion program. For the next two years, revenues continued to stabilize at 87 million in 1954 and 98 million in 1955. During this time, however, demand increased, leading to a 50 increase in capacity. Most of this expansion program was completed in 1955 and 1956 earnings are just beginning to show the results. Thus the first quarter of 1956 showed operating revenues of almost 30 million versus 26 million and per-share earnings of 1.69 versus 1.41 as compared to the like 1955 quarter. Further earnings gains are in prospect for the remainder of the year and a minimum expectation for the full year would be in the neighborhood of 6.50 The current dividend, 3.00, could well be liberalized. 111\ ,', , The bulk of Panhandle's earnings comes from its natural gas trans- mission system which runs northeast from the Texas panhandle to the -Detroit area, serv-ing the -way..Trunkline – Company, 96.8 owned, operates a pipeline running along the South Texas coast and thence Northward to connect with Panhandle's main line at Decatur, Illinois. Although the pip'eline system provides the main source of revenue, a much larger long-term potential is provided by Panhandle's own huge gas and oil reserves. The company owns mineral rights on some 821,000 acres in the Anadarko basin of Texas,Oklahoma, Kansas and Colorado with a large part of this acreage in the rich Pan- handle and Hugoton gas fields. Gas reserves at the end of 1955 were 4 trillion cubic feet. Valued at the very conservative figure of 5/ per mcf these reserves have a total value of 200 million or about 59 per Panhandle share. Thus, at current prices, only 33.00 is being paid for a transmission company with better than 6 annual earnings capacity ThiS market lettcr IS not and under no Circumstances IS to be as, nn olTer to 'ell or 0. solicItation to buy any securities referred to herein The informatIon contained herem IS not g'uaranteed .IS to accuracy or completeness and the furnl,hlnJ.! thereof is not, and under no Circumstances IS to bcconstrucd us, 11 representation hy \'lalston & Co Inc All exprcsslOns of opmlOn are subject to change Without notice ' nlston & Co, Inc, or any Officer, Dlrectol or Stockholder thereof, may hn\e nn Interest Iii the SCCUritles mentIOned herem ThiS market Jetter IS Intended find prescnted meleIy as a general, IllfurmaI commellt,lry on dn to news lind not us a complete annbsis AddItlOnailllformatlon With respect to nny sleurlue; referred to herem III be furnished upon request ,,,

— NEW YORK Wdlston &Co. Inc. Members New Y Qj'Ie Stock EXcha,nge PHILADELPHIA LOS ANGELES SAN FRANC.SCO BASLE ISw,t,l.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER July 13, 1956 On June 1, 1956 this letter published a list of 23 stocks with recommend ed buying ranges, stating that the issues would be placed on our recommended list when the buying ranges mentioned were reached. Since that time 12 of th 23 stocks reached the indicated buying levels and were forthwith added to th , list. A brief review on each of the 12 issues added follows. AMER.ADA PETROLEUM Price Recmmended 103-99 Current Price 108 Amerada has the finest record in the Western Hemisphere in new oil dis- covery and its reserve position is believed to be one of the best of any of the major oil companies. The technical pattern is excellent,indicating 150- 160 followed by possible higher levels over the longer term. EASTERN AIR LINES Price Recommended 47-45 Current Price 51 ERL has one of the best growth records in the airline industry. Company follows the most conservative depreciation practices of any airline and earn ings therefore are often understated in comparison with other lines. The technical pattern indicates 75 over the intermediate term with good support at 45-42. INTERNATIONAL PETROLEUM Price Recommended 34-32 Current Price 36 Company is 83 owned by Standard Oil of N.J. and is one of the leading factors in South American oil production. Exploration is continually being carried on in eru,Colombia and Venezuela. Stock has an intermediate term objective of 48. There is always the possibility of Jersey's taking over the minority interest in the company. JOHNS MANVILLE Price Recommended 50-48 Current Price 53 JM, recently split two for one,has broken out of a trading range in which the stock held since 1955,indicating a possible 65-70 with good sup- port at 50-48. The company's most important product,asbestos, is consistly finding new sources in industrial applications. KAISER ALUMINUM Price Recommended 46-44 Current Price 59 Kaiser has an upside potential of 72,with good Gupport at 55-50. Over the long term production capacity is expected to expand at a greater rate than the aluminum industry as a whole and the stock appears to be an ex- cellent representation in a growth field. NATIONAL DISTILLERS Price Recommended 24-23 Current Price 26 National is finally beginning to show profits from its large chemical investment.Intermediate term objective is 37-40 followed by a long term 56 with some supply being encountered between current levels and 37. There is support at 23-21. NORFOLK & WESTERN RVlY. Price Recommended 64-62 Current Price 70 Norfolk is a highly efficient railroad serving the coal-rich ocahon- tas territory. Vlith the resurgence of bituminous coal as a fuel, company is expected to receive increasing freight traffic. The long term objective is 95 with support now at 67-65. PITTSTON CO. rice'Recommended 45-43 Current Price 55 It is possible that Pittston's 1956 earnings will approach the 6.00 level vs. 3.60. The company is a diversified holding operation which has in coal, natural gas and intransportation. McBEE Price Recommended 31-29 Current Price 35 Royal is one of the largest producers of typewriters and appears to have interesting potentials based on other forms of office equipment. Selling at around ten times estimated 1956 earnings,the stock would appear to be one of the cheapest participations in the growing office equipment . field. Technical objective is 56 with support at 30-28. SUNRAY-MID-CONTINENT Price Recommended 25-24 Current Price 25 The merger of Sunray, essentially a producer, and Mid-Continent, a refiner and marketer, is expected to produce better operating results than were shown by the two separately. Stock has an intermediate term ob- jective of 29 followed by leng term 40,with support close to current levels. ELECTRIC Price Recommended 49-47 Current Price 53 Sylvania was reviewed in our June 22, 1956 market letter. CORP. Price Recommended 50-49 Current Price 51 Tennessee is well on the way toward re-establishing itself as a major factor in the chemical industry. With near term outlook good,based on pros- pects of improved sales of triple superphosphate fertilizer,and the longer term outlook enhanced by growing sales to chemical and industrial companies, stock at current levels. Long term Dbjective is 80 with S ''ff..fi market letter is not, no circumstances 18 to be construed as, an offer to sell or rderred to herein, The mformatlOn contaIned herem IS not guaranteed as to accuracy or completeness and the furnishing by Walston & Co Inc All expresSIOns of opinion arc Bubject to change Without notace. Wal ra1),0 clrcctfu'stances IS to be construed as, a representatIon .1JIll'q . nljf'f1ct!NOJlrector or Stockholder thereof, mil.) have an Interest the securitIes mentlOned herem This market letter is intended and presente mere y as a general, c!ommentar)' on day to day market 'L- —'-news and not as a complete analyslB Additional mformatlon With respect to any securities referred to herem Will be furnished upon reque!t WN 301

… . , NEW YORK Walston &Co. – – – – – I n c . Members New York Stock Exchange PHlLAOELPHIA LOS ANGELES SAN FRANCISCO OFFICES COAST TO COAST CONNECTED BY DIRECT PRIYATE WIRE BASLE iSw,I..d) TABELL'S MARKET LEnER July 20, 1956 The market, as has been expected, is running into a good deal of overhead resistance in the 510-520 area on the Dow-Jones industrial aver- age. Indicative of this resistance, my intermediate term technical indi- cator registered a sell signal at Wednesday'-s close. Support for any de- cline should be registered in the broad 490-480 area on the industrials and around 163-160 in the rails. As usual, action will continue to be focused on individual stocks rather than on the averages. The attention of the investor, if any weakness develops over the next few weeks, should be devoted to selecting issues for new purchase on the aforementioned '–weakness. six months continues-, –issues–which – are attractive from a fundamental and technical point of view will decline far less than the general market and any minor setbacks should be used for the purchase of recommended stocks. As noted in last week's letter, twelve stocks were added to my recommended list. In order to maintain the list at a workable size, I have found it necessary to eliminate eight issues which have advanced rather sharply since the time of their original recommendation. It is to be emphasizedthat removal from the list does not in any way constitute a sell recommendation. All of the issues eliminated have longer term objectives considerably above their current prices and may be retained in long term capital appreciation accounts. However, in most cases intermediate term objectives have been reached and the issues eliminated appear in need of some consolidation before any advance is resumed. New purchases should be selected from among the issues being retained in the list. The eight issues eliminated, together with their original Lt lslnJ&restj.ng-.t9 note that all 8000 . investment, -1000. in each one of these issues at the time of their original recommendation, would now be worth 16,557. American Potash Barber Oil Chain Belt Cities Service Cutler Hammer Dow Chemical Dresser Ind. Sinclair Oil Price Recommended 16 59 30 38 57 39 33 46 Present Price 49 78 70 71 110 79 83 69 I am also transferring two issues, SIMMONS and MONTANA-DhKOTA UTILITIES, from the regular recommended list to the income list. This list is designed for investors who in- come commensurate with quality, plus slow, long term capital apprecia- tion. The new recommended list is now as follows Present Price Alleghany Corp. 3/8 Allegheny Ludlum Amerada Petroleum 113 Black &- Decker 48 Butler Bros. 26 Calgary & Edmonton 25 Chicago Corp. 26 Colgate 56 Cornell-Dubilier 27 rice Recommended 3 3/4 16 103 19 23 16 24 60 21 Yield – 3.6 1.8 2.5 5.4 0.4 3.8 5.4 7.0 BuyHold. Support at 8. 38-7. 105-95. Buy-Hold.Support BuyHold.Support 24-23. 55-50. Buy-Hold.Support 25-24. – , —- ——————————————————- '-.1 Present Price Eagre – -42'''- Eastern Airlines 50 Food Machinery 73 General Rwy Signal 85 Hewitt-Robins 41 Internat'l Pete 36 Johns Manville 56 Joy Mfg. 58 Kaiser Alum. 65 Magma Copper 114 Masonite 48 Monsanto Chem. 42 National Dist. 26 Norfolk & West. Pacific Pete. 20 Pan-Amero World A 20 Panhandle East.Pipe 99 Pittston Co 54 Royal McBet 36 Sunray Mid-Cont. 28 Sylvania Elec. 52 Tennessee Corp -3 Western Pacific 76 West'house Air Br 36 Yale & Towne 32 -2- Price Recommended Yield Advice 47 51 59 25 34 50 23 46 75 41 31 64 11 12 45 31 25 49 50–. 73 33 18 – -4 ;3–.;.BuyHoldSuppert,4038-. 2.0 Buy-Hold. Support 2.7 Support 65-63. 3.5 Buy-Ho'ld. Support 4.9 Support 38-36. 3.6 Support 33-31. 3.8 BuyHold. Support 2.8 Buy-Hold. Support 52-50. 1.-4 Hold. Support 52-48. – BuyHold.Support 10595. 3.2 BuyHold. Support 4240. 2.4 BuyHold. Support 41-39. 3.8 BuyHold. Support at-23. 5.2 BuyHold. Support 65-62. BuyHold. Support 4.0 Support 18-17. 3.0 BuyHold. Support 2.2 BuyHold. Support 3.9 Support 4.3 Support 3.8 Support 4947. – 5. 3.9 BuyHold. Support 3.3 Support 30-27. 4.7 Buy-Hold. Support at 27. awt;amb EDMUND W. TABELL WALSTON & CO. INC. , , f ,I t I l , t J-

— NEW YORK -W–a-lIsntocn.-&-C-o. Members New YOTk Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Sw,hl.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TAB Ell'S MARKET LEnER July 27, 1956 The overhead supply at the April and May tops of 524.7 and 519.80 halted the Dow-Jones industrial average at Thursday's intra-day high of 517.62. The presence of this overhead supply was evidenced by the fact that for nine successive trading days the industrial average closed in a range bounded by 515.85 and 512.98. News of the nationalization of the Suez Canal brought some nervous profit taking into Friday's session and the average reacted to a low of 507.85. It is only normal to expect some technical correction at this pOint. The industrial average rallied from the late May low of 463.85 to 517.62, an advance of over 53 points in about two month&. h normal retracement -of a third-,to –a- half o-f-this—a.dvance to the 500-490 area would .be in line with standard technical procedure. There is a strong support zone at 490480 that shoulj halt any normal technical correction. It would need news developments of a drastically adverse nature to push the market much below this support level. From a longer term fundamental and technical point of view, there is no change in the generally constructive pattern. The possible price action of an average consisting of a small number of leading companiee is in no way indicative of the possible price action of individual issues. However, I have just completed my.semi-annual technical appraisal of the price action of over a thousand listed issues. These will be available for your perusal at Walston & Co. offices sometime during the next week. In it are the possible advance potentials in the event of a generally favorable market and the possible decline potentials in the event of a generally unfavorable market. The stocks that have readable patterns indicate an upside potential that averages 57.1. downside potential is 17.4. Translating this into terms of the Dow-Jones industrial average, the projection of the present pattern indicates a possible potential of 790-800 on the upside as against a downside potential of 430. The projected potentials are, of course, for the next several years. It is interesting to note that the possible downside potential is at just about the October low point reached after the announcement of President Eisen- hower 1 an-d isrelatlvely'Sma-L1–when–'C'ompared -to -the-p-o-s-si-b-le – upside potential. It would appear that, at the worst, the market might hold in the broad 525-430 range for a longer period of time. However, if this happens, the accumulation base might be widened sufficiently to in- dicate even a higher upside potential. As mentioned in a previous letter, the next six months or so may be the last opportunity to buy stocks in the broad 525-430 level prior to an advance to a higher plateau. This price pattern will not apply to every individual issue. The selectivity of the past several years will continue and even grow stronger in the future. Owning the right securities will be much more important than the price action of various averages. At the moment, favorable relative strength action is being shown by the following groups Airlines, Cements, Drugs, Natural Gas, Machinery, Metallurgical, Steel, Rail Equip- ment, selected Rails, as well as individual issues in other groups. Most of these groups are already represented in our recommended list, but would add tbe following to the list in the event of near term market weak- ness. Friday's Close Buyinl1; Range Carrier Corp. Crucible Steel Illinois Central Kansas City Nerthern Pacific enn-Dixie Cement Rayonier Scott Paper United Airlines 57 55 3/8 65 86-l/2-41 40 1/8 41 7/8 72 1/4 41 3/4 57-55 64-62 –8583 40-38 39-37 40–38 40-38 This replaces our buying list of June 1st. EDMUND VI.TABELL \!UlLSTON & CO. INC. This market letter not. Ilnd under no is to be cOn'ltruN as, an ofTer tn (';cll or 11 soltCltntion to buy any sccunhC' referred to herean The miormlltJon cont,lInl.(1 hcrem IS not gunrnnteed us to accuracy or comflleteness and the thcreuf I'! nM, und under no Circumstances IS to be construed as, a representatiOll hy \Vah'ton & Co Inc Ail e'ltJ)rcsslOns of otHniOn are subJect to change Ithoui notice 'Wnlstnn & Co, Inc, or .my Officer, Director or Stockholdcr thereof, may nn mterest. the 'lccurlilC' menthllled herem ThiS market letter IS lIltende.\ I\IHI presented mrreiy liS n gcnernl. m!ormal commentary on day to day market news and not II'! u complete anUlysl9 Additional mrorm.J.tlOn WIth respcct 1u uny beCIlnheb rcfell ed to herem Will be furnished upon request WN 301 — – -l(ui.lii.W.W,.',i adila, i,

r Walston &Co, Inc. Members New York Stock Exchange f NEW YORK PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (SwH',I.nd) OFfiCES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER August 6, 1956 ,1 The Dow-Jones industrial average reached a new high for the MayAugust advance at 523.33. This is just a shade below the MarchApril high of 524.37. The rail average continues to lag, however, and is over twelve pOints below the May high of 182.54 Continue to expect selective price action by individual stocks regardless of the movement of the averages. The folrowing fo'ur- issUes on our–re-comrrfended l.is-t…. stillappears attractive for sizeable price appreciation over the longer term. . GENERAL RAILWAY SIGNAL (84) neported sharply increased earnings for the six months and for the quarter ended June 30, Earnings were at 3.62 per common share for the first half as eA RNiNG- compared with 1.55 per share in the like 1955 period. were 2.5 million this year, as against 1.0 million in the 1955 period. Second quarter results were even more impressive, as the company showed 1.98 per share versus 93 . In addition, it is understood that backlog has increased considerably over the year earlier period. With railway carriers stepping up their programs for modernization/ sales outlook over both the near and long terms is extremely Irigh0. Earnings for the full year 1956 should amount to better than 8 per share. A substantial increase beyond this is expected or 1957. The long term technical objective is 150 with strong support encountered just under current levels. The earnings of JOY MANUFACTURING (60) also made very interesting reading. Both net and sales set new reCO!dS during the quarter ended June 30 with arnings at 1.17 versus 93. Sales were 34.5 million as against millIon. oy s fiscal year ends Sep- Etesmtibmerate3s0, aarend thnaett ffoisrcathleyneianre emaronnitnhgs s towtiallllebdetter theperti6c.o5m0mloenv.sehl are. -and t'he oT -tfie company told' snare- holders that bookings and remain at Good levels'. They reported that the company's Turbo Dynamic Division at Buffalo is now working in recently completed new facilities and that substantial Government orders have been received involving products of that division. The stock ccntinues to have an objective of 75 for the intermediate term. ' MAGMA COPPER (114) has not yet released its six months' earnings figures. However, it is understood that earnings for the second quarter will begin to reflect production at the new San Mnuel Mine. The extent to which the true earnirgpower of the new mine will be reflected depends on the amount of start-up expense and accelerated amortization which will be writter, off. However, with San Manuel now in production, the shares appear exceedingly attractive. allowing for a further decline in of copper, earning power under full production should better 20 per share and with an improve- ment in the world copper it could well reach 30 per share. With bash row frem San Manuel Gbw coming in, prospects are brighter for a re-financing of million Government loan, the conditions of which prohibit of dividends by Magma. The technical ob- jective is well over 200 with support at 105-100. WESTERN PACIFIC RAILWAY (76) still up–a; one of the more attractive rails. The road is progressing well with expansion, and although earnings have been held down in the earlier part of the year, due to flood damage, it is expected that full year results will better the 5.91 shown in 1955. The 75 quarterly dividend could well be liberalized later in the year. Long term technical objective is 150, and there is support at 75 70. EDMUND W. TABELL WALSTON & CO. INC. ed IT t II r 11 soliCitation to buy any sccunhcs referred to herein The information Thlh market letter IS not, and under no CITcumstnnce! IS to be constl'u as, an 0 e, 0 Be 0 untaltled herCln IS not lIunr.lllteed liS to nc!urncy or completeness nd thc n 0&t . and Co under Inc no or CIrcumstances IS to be construed as, a representation any OffIcer Director or Stockholder thereof, may by V.'llistnn & Co, lnc All C'I(presslOns of Opinion merely as commentary on day to day hAve ,.n mterest news and not as m the a com SecUritIes plete nnaly mentlllnded her sls Ad Itlonu , ,,n In , or , ma mar Ion e WI th , 'prelet \0 an'- securities referred to herem Will be furnIshed upon request.

— – – – – – Wdlston &- Co. Inc. M embm's New YOj'k Stock EXchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (SwH,laod) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM this letter expressed the opinion that the genera stock market, as measured by the Dow-Jones industrial average, would most likely pivot around the 490 level, with moves limited to 40 or 50 points above or below 490, for a long period of time. Nothing new has occurred to change that opinion substantially. In fact, the average, with the brief exception of the Eisenhower illness decline to 433.19 in October, has held in an area bounded roughly by 525 and 450 since June 1955. This is a range of 3 points above 490 and 40 points below. I would expect this range to continue r some further time. After all, there is no'particular reason, as far as earn ings are concerned, for the average to move very far in either direction.Ear ings on the thirty stocks-in the Dow'Jones industria1-avera-gejump-ed'-fromth 28.05 in 1954 to 35.43 in 1955. Earnings for 1956 should not be much above 37.00 for the industrial average. Therefore, it would seem logical to expec the market to pivot around the 490 level for the balance of the year. When the news is cheerful and speculative confidence high, the market will undoub edly hold in an area bounded roughly by 40 or so pOints above 490. When the news is temporarily unfavorable and speculative confidence uncertain, the rna ket may drop to the lower level bounded roughly by 40 or so points below 490 This trading plateau could rise in 1957 because competent sources estimate possible earnings of 40 or over on the Dow-Jones industrial average. This i in line with my opinion that while the averages may continue to hold for som time longer in the broad trading area in which they have held for over a yea , this may be the last opportunity to buy the general market in this year-old Rrice range prior to an advance to a higher plateau. As far as individual stocks are concerned, the pattern has been, and will continue to be, different from that of the averages. While aveJage earnings in 1956 will show little change from 1955, individual companies wiJl shl considerable change. In companies where earnings are rislng, there has bepn also a sharp advance in stock prices. In companies wHere there has been a de- cline in earnings, the result has been a market decline. This is only normal and desirable and is the reason why the action of individual stocks is much – more important than-,-the tne-averag-es-Tn-thTsnighlyselective ana – – more intelligent market whose main motivating power is furnished by profess- ional institutional managers rather than short term speCUlators. The market continues to meet overhead resistance. For some ten trading in late July, the resistance was at 517. In the first ten or so trading pays of ccugust the supply was encountered at around the 524 level which was area of the March-April high of 524.37. The high for the first week of was 523.33. The high for the past week was 523.24. Friday's close was For twenty-one trading days the industrial average has ranged between roughly 524 and 507. The direction of the penetration of this trading area jepends largely on the short term trading interpretation of coming news event upside potential is probably 540-550 and the downside potential about again dependent on the state of short term speculative confidence. decline to the level mentioned above should be used to add to holdings In our recommended list which was'lastpublished in my letter of July 20th. rhree issues in my buy list of July 27th reached buying levels and are added o the list. They are Illinois Central in the 64-62 area, enn-Dixie Cement the 39-37 range and Rayonier in the 40-38 area. If any further weakness develops, would also buy the following issues a' Levels specified. — – Friday'-s- Buy- – – Close Level – — Friday's- Buy Close LJ2vel Bristol Myers 37 1/4 35-34 Northern Natl Gas 49 1/2 48-47 Carborundum 41 1/2 40-39 Northern Pacific 41 5/8 40-39 Carrier Corp. Crucible Steel 60 1/8 58 3/8 58-57 Richfield Oil u. S. Steel 76 1/4 75-74 64 3/4 62-60 I Gen'l Dynamics (new) 49 3/8 47-46 I EDMUND W.TABELL WALSTON & CO. INC Ii Errata In last week's letter under heading of General Railway Signal, the I, sentence in the fourth line starting Sales were 2.5 million this year I should read ..;rr.ings were 2.5 million this year. E1,rr he rl IT t II or a salleltatIon to buy an securlhes referred to herem The mformatlOn lnfThl'l market letter 1; not, lind un tier no circumstancc'l IS tOI t;s, 0 contamed herem IS not guarnnteed as to accuracy or etencssn c 0 tst'\r\e-'oaflsIStonnot&. nnd Co under Inc no or Circumstances IS to be construed as. n representation any Ofhcer, Dlrcctor or Stockholder thereof. may I, by ';lti'ton & en, Inc All expressIOn, of opinIOn Jeetktot WI t merely liS J(eneral, mformul cummentary on (illY to dll f!1urkct securltlcs referred to hel em \\111 be furlllshed upon request WN 301 II I! ,I, ',' II II. I'i'ii, ………1 .of , ' ill tlmill G

I' – , J I Walston &Co. Inc. — MEMBERS NEW YORK StOCK EXCHANGE AND OTHER LEADING STOCK AND COMMODITY EXCHANGES NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO LUGANO rSwiherJad) OFFICES COAST TO COAST CONNECTEC BY DIRECT PRIVATE WIRE SYSTEM EDMUND W. TABELL August 15, 1956 I INSTITTUhTIeOrNe AiLs no c ange in our thinking that the market will remain for quite some time in a broad trading area bounded roughly by fifty points each side of the 490 level and that the action of individual groups and issues will be of much more importance than the action of the averages. The following analysis attempts to cover the technical action of over forty groups FAVORfBLE ACTION ;IR CONDITIONING. Relative strength improving and group average is close tq reaching a new high Since the 1954-1956 trading area. Carrier Corp. (59) appears to be an attractive issue in the group. – Relative strength has been in an uptrend since 1953 and still continues strong. However, the advance has been rapid and some consoli- dation appears needed before the long term advance is resumed. BUSINESS M..CHINES – Relative strength still is above average some consolidation appears needed. Royal McBee (31) has a favorable pattern. CEMENT – Very favorable long term patterns have been built up after a lengthy period of consolidation. All issues in the group are attractive, but especially like Alpha Portland (40) , General Portland (67), Marquette Cement (35) and Penn-Dixie (39) DRUG – This group continues to show favorable action although some in- dividuaTssues are slow. Bristol-Myers (37) has an outstandingly favorable technical pattern. Merck & Co. (33), Parke-Davis (50) and Pfizer (46) conti- nue to look attractive. ELECTRIC EQUIPMENT – While there-are a few weak situations in this group like Westinghouse and Robertshaw-Fulton, the balance of the group are showing good relative strength action. InclUded in the good acting section are Beckman Instruments (35), Emerson Electric (35), General Electric (64) and Sperry Rand (26) GAS – ThlS is an outstandingly attractive group. After three years of consolidation, the group appears to be breaking out on the upside. J.lmost al issues in the group appear attractive but Panhandle Eastern (97) and Norther Natural Gas (49) appear most attractive. f,S a more speculative issue, Chicag Corp. (27), has appeal. Mf.CHINERY – This group has had above average price action since 1953 and good relative strength continues. However, some consolidation appears needed in some issues after the sharp price advance. Blaw-Knox (38), Joy Mfg.(61), Link Belt (69), Mesta Machine (60) and Yale & Towne (32) still appear attractive for the longer term. MINING & SMELTING – Longer term prospects for this group are very fa- vorable, particularly in nickel and copper section. Lead and zinc pattern is less certain but could improve. issues with good technical patterns ar American Smelting (55), Anaconda (84 , Cerro-de-Pasco (74, Eagle-Picher Co. (42 ), International Nickel (109, Kennecott (136) and Magma Copper ( 120) . OILS – Favorable relative strength action continues. Some of the inter national oils may need some consolidation, however. There is good downside support in all issues and the longer term patterns are favorable. The most attractive issues at the moment include j,merada Corp. (118), A.tlantic Re- fining (46), Mission Corp. (45), Phillips Petroleum (55), Pure Oil (46), Richfield Oi.l (76)t Standard Oil of Indiana (64), Sunray-Midcontinent (29). PAPER – The rend has been upward in this group since late 1953 and there is no change in relative strength action. However, it is probable that some consolidation is needed for some time longer 'in order to build up new re-accumulation areas. Scott Paper (72) , which has held in a narrow trading area for over a year, appears attractive at around present levels. EQUIPMENT – The favorable trends which have been in effect for over a year still continue. Three of the more attractive issues are American Steel Foundries (49), General Railway Signal (87) and Westinghouse f..ir Brake (34 ) STEEL – Recent technical action has been very impressive and the steels have become one of the most interesting groups for intermediate and, longer term price appreciation. Most issues in the group appear attractive. My favorites include Allegheny Ludlum (46), Crucible Steel (59) and U.S. Steel (65). UTILITIES '- Price action may be slow but the slow uptrend still re- -mains in effect. Like parti-cularly companies in the northwest territory. – Th,s memo(ilndum is not to be conlltrued as an offer or SOIIClt1tIO of offers to buy or stll anv securitlu From time to lime & Co. or any pO!lrtner thNeof, may hve !In Interest In some or lilt! of the securities mentioned hlllrltln The foregOlnq mhHl,,1 has been prillpated bV ul S matter of Infotmallon only II IS baU1d upon Informaj'()n believed reliable but not necessarily complete, is not qUafolnfeed u 4CCUrlilie or final, and is noi ,nfellded to foreclose Independenf ,nquifY ..- , al -2- MIXED ACTION AIRCRAFT – Relative strength improving. Action of indivi- dual issues in the group very mixed.Believe best holdings for long appreciation are General D1namics (49) and North American Aviation (91). As a speculation, Glenn-Martin 33) has appeal. – Continue to hold in the year-old trading area. Timing will be of utmost importance in this group. Relative strength has not yet improved and further patience may be required but group has very interesting price apprecia- tion prospects.American Airlines (24), Eastern Airlines (54), Pan hmerican- World Airways (lb) and United Airlines (40) all have good potential patterns. AUTOMOBILE EQUIPMENT – A very mixed group with a combination of a few good and quite a few poor patterns. On the favorable side are Borg Warner (47) Federal MOBUl Bower (40), Thompson Products (64) and Timken Roller BearinR (84j. BOIL ING SUPFLIES – 1. few issues have favorable -patterns but there are also quite a number showing uncertain or unfavorable action. Best acting issues include Johns-Manville (54), Masonite Corp. (46), National Lead (120), U.S. Gypsum (73) and U. S. Plywood (47). CHEMICALS – Price action is quite mixed here. The sulphur group shows very poor action as do most of the agricultural chemicals. Most issues in the group, however, are static.Best acting issues include Columbian Carbon (53), Hooker Electrochemical (48), Pennsylvania Salt (60)and Union Carbide \129). American ctanamid Dow (77) have good longer term patterns but appear in need o consolidation.— COAL – Patterns are becoming a bit mixed in this group. Relative price action continues good but in many cases upside objectives have been reached and a rest appears needed. ELECTRONICS – All of the television issues show poor patterns with no sign of' any immediate change. On the other hand, the broadcasting companies like American Broadcasting-Paramount (31) and Columbia Broadcasting (30) con- tinue to show good action. The most outstanding issue in the group, .however, is Sylvania EJectric (54) with excellent relative strength action and a good general technical pattern. FOOD CHAINS – Only average price action indicated here. American Stores (54), Grand Onion (36), Kroger (51) and Safeway (57) appear most attractive. FOOD – Here again only average'action is expected. No issue appears out- standingly attractive except Stokely-Van Camp (22) as a speculation. GLASS CONTAINERS – Relative price action for most \If the group appears good,but in need 01' a resting period. Owens Illinois (80) still appears at- tractively priced and could higher. INVESTMENT COMPANIES – ;\s expected, these issues will follow the action of the general market. No issue particularly outstanding. RAILS – While patterns in this group are very mixed,there appears to be a minimum of downside risk in most situations.Best patterns are in northwest rails and coals. Among the attractive issues are Denver,Rio Grande (42) Great Northern (42), Illinois Central (63), Kansas City Southern (86), Louisville & Nashville (lOl),Norfolk & Western (70),Northern Pacific (41),Western Pac. (76). RETAIL Clli,IN – Relative strength in this group has been very disappoint- ing and there is no evidence of any immediate change. Best potentials appear in the department store group. Would avoid the variety chain stores whose patterns are unrfarmly unfavorable. – Some further time may be needed to consolidate after the sharp advances of the past several years,but the basic patterns of most issues remain favorable. Firestone (89) shows the best near term action. Hewitt-Robins (40) has a very attractive long term patter.n. SOAP & VEGETABLE IL – Recent action has been poor and casts considerable doubt on the ability of this group to make much headway. Vlould avoid until the pattern clarifies. SOFT DRINK – While the longer term patterns appear favorable, there are no indications of any immediate move and funds might be employed to better advantage in-other groups. SUG!',R – Recent relative strength patterns have shown improv;ement. I-Jould confine holdings to domestic beet sugar companies rather than off-shore companies. TIN CANS – Very mixed action in group with Continental Can advancing while rest of the group has remained static. Action of hmerican Can (45) could improve and stock appea-rs attractive at present levels. – Price action of this group has been poor for a long time but is slowly showing signs of improvement. Patience may be required but with yields attractive the group has merit for long term holding. The following groups continue to show unfavorable action and should be avoided ;'.UTOMOBILES, BAKING, BRASS, FARM MACHINERY, FERTILIZER, FINANCE COMANIES, GOLD, LIQUOR, MEAT PACKING, MOVIES, TEXTILE. EDMUND W. & CO. INC.

,, Walston &Co. – – – – I n c . – Membe,'s New Y01'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE ISw;t,Id I OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER August 17,1956 Despite worthwhile moves in individual issues,the main bulk of the market continues to move aimlessly back and forth in the trading area in which it has held for over a month. This price action is best typified by the price movement of the Dow-Jones 65-Stock average which is a combination of the 30 industrials, 20 rails and 15 utilities. Since early July, and for a total of twenty-four trading -days, this average has held in a narrow area bounded by 185 and 181. The 65-stock average held in a similar trading area for a two-month trading area from mid-March to mid-May. At that time, the range was 179-184. It is this supply stock that the market is endeavoring to absorb at the present time. Whether ur not it will succeed in so dOing,is still problematical. From a technical viewpoint, ability to reach 186 on increased volume would probably indicate 197. A decline to 179 on volume would probably indicate 169. Friday's close was 181.65. The downside breakout of the March-May 179-184 range culminated in a late May low of 167. The direction of the next move will probably be motivated by shorter term news developments. ALLEGHENY LUDLUM STEEL (53), at Friday's close was up 5 7/8 pOints from the opening on Wednesday morning due to a highly favorable and unanti- cipated announcement concerning Titanium Metals Corporation, jOintly with National Lead. In the first earnings statement ever released by Tita- nium, the subsidiary reported that it earned 5,205,000 after taxes. At this rate, 1.39 per share of annual earnings would be applicable to Allegheny Ludlum. However, it was announced that plans are under way to increase out- put of titanium sponge by almost half and to almost double ingot output.Thus a conservative estimate of 2 per share earnings may be applicable to AG in the future, in addition to the income from its own stainless steel business which netted 4.12 per common share in 1955. MAGMA COPPER (119) released its six months earnings figures some ten days ago and while the 4.16 six-month net was considerably ahead of last year's 2.98, it is felt that this figure .does not nearly begin to show the true earning power of the company. According to the company figures, some 57 million pounds of copper were produced in the six months ended June 30, 1956 In the comparable 1955 period, the old Magma mine had produced some 26 pounds, thus leading to the estimate that the new San Manuel development con tributed some 31 million pounds. Since San Manuel's annual rate, when it is brought to full capacity, will be 140 million pounds annually, it can be seen that the new development will in the future exert a considerably great- er effect on earnings. In addition, it will be noted that during the six months ended June 30th only 38 million pounds of the 57 million poung out- put were sold due to the temporary oversupply of copper. Thus, sales could have been more than 50 higher. The company expects that full San Manuel production will be reached around the end of the year. Two new developments of importance to stockholders of PAN AMERICP.N- WORLD AIRWAYS (18 5/8) were released during the week. The first of these was the disappointing announcement that Northeast Airlines, rather than Pan American, had been certified by-the Civil Aeronautics Board to be the third airline on the lucrative Boston-New York-Miami route. Original estimates of however, have never taken into account any, income to be earned from liiami service and we continue to feel that the company develop sub- stantial new earning power over the next two years with or without the Miami run. Indeed, some doubt has been cast on the ability of Northeast to fully handle the Miami traffic and there is always the outside possi- bility that PN may be certified as a fourth carrier as the traffic on the route increases. Shortly after the Miami announcement, PN announced its six months earnings which soared to 971 a share from 751 a share in the- 1955 period. Operating revenues were up 21 to 132 million and ex- genses rose only 18.5, thus doubling net before taxes. Since PN should the most favorable results during the third quarter when the European bUSiness is heaviest, it appears that our original earnings estimate Jf 2.25 per share for 1956 is within the realm of probability. Further ex- Jansion in revenues, coupled with good cost control, could lead to an earn- ings level of better than 3.00 in 1957. EDMUND vi. TABELL ,WTamb WALSTON &CO.INC. This market letter IS not nnd under no circumstances IS to he con!\trued as, aT offer to sell or a solicitation to buy any referred to herein The lnfol Allherelll is nut Jf,'unrantccr3 Il to !1ccuracy or and the thctcof is not. Rcrid ujTIfler no C1TcuomNlInce,;S Lotbl' h Walstoll & Co Inc of opinlOll are subject to ehallge Without nutlce ,,'alston & 0, ne, or lIny lcer, Irec or or an mtercst s(!Cunlli.'S menllOned herem. ThiS market letter IS mtended and llresenlcd merely as a J.cner.ll, mformlll WN'arket on d.IY to daY 301 and not us a complete aml.lysis AdditIOnal mformatlOl\ With rCl;.pect to any b(!CurllJC; refel I,d to h'reln Will be furnllhc-d upon reques .