.' &- Co .Walston—-Inc. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,.dd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM , TABELL'S MARKET LEnER August 24, 1956 The month-old trading area between roughly 525 and 510 in the Dow-Jone industrial average was finally broken by a downside penetration to 500.84 on ruesday. The volume of trading was moderate on both the decline and subse- quent recovery to 510.77 on Friday,. The industrial average is now wedged in between a heavy overhead supply area and two areas of demand. The overhead supply is at 510-525, which the market failed to penetrate on several occa- sions since the first attempt in April. On the downside, there are tvlO clear ly defined support areas. The first support area is at 490-480 and the secon at 470-460. It would appear, as we predicted at the beginning of the year, that the average will continue to hold in a wide trading area for another sixmollths..,or,longerp.r.ior to ..a .generalmove ever, as I have continually stressed,such a framework leaves plenty of scope for wide moves in individual issues regardless of the lethargy of the averages. Best results will continue to be obtained by concentration on the act- ion of individual issues rather than on a general market pattern. The market uncertainty of the past week has been caused mainly by con- cern over the money market and the decline in bond prices. The demand for money for normal business purposes,plus the sums needed to finance the huge capital expansion program has exceeded the supply and the Federal Reserve Board has tried to slow down the pace of the debt build-up. As our economy continues to grow, the money supply will have to increase also and inflationary pressures will continue. It is the purpose of the F.R.B. to hold down the price of the advance to a normal rate rather than have the economy experience a wide swing in one direction followed by a more or less drastic correction. This requires a skillful hand, but so far our financial authorities have done a good job. Despite the advance in the general market and the low yield basis on many growth issues are selJing, there are still many issues that have interesting long term prospects and are still available at prices to show an above average yield. Recently, this letter started a recommendation list of issues of this type and have occasionally added issues from my regular rec,ommended—.list. I haye, called this Inc ome a!ldLoDgTermApRr,e,ciation recommendations. All the issues in the list have about the same character- istics of (1) an above average yield when quality is considered, (2) defensive patterns with a seemingly relatively small downside potential, and (3),attractive long term appreciation prospects. The list follows – Price Yield Price Yield Stores p,merican Can I-\-merican Chain Goods Bros. r.olgate Palm, live rornell Dubi.lier 51 5.9 44 4.5 53 4.7 30 6.0 24 5.8 114 4.4 53 6.6 29 5.5 Hall Printing Montana-Dak.Util.' Norfolk & Western Raybestos-Man. Simmons Co. United Fruit Western Auto S 24 26 69 57 53 49 31 5.8 3.8 5.4 5.3 5.7 6.1 5.2 My recommended list for Capital Appreciation will be reviewed in next week's letter. Several issues reached buying levels during the weakness of Lhe past week. They are NORTHERN NATURAL GAS (48-47),NORTHERN PACIFIC (40-35) KICHFIELD OIL (75-74)and SCOTT PAPER (70-68). \IIould also add the following issues to the Capital Appreciation list periods of market weakness. The buy recommendations below cancel thOSE '', '-'-', ,—-'–, c- Friday's Buying Friday's Buying Close Range Close Range Bell & Howell Bristol Myers Carborundum Carrier Corp. Columbian Carbon Crucible Steel 40 1/2 36 1/2 43 1/8 60 1/2 50 3/4 61 1/2 39-37 37-35 42-40 60-58 50 60-58 Fansteel 47 Gen'l Dynamics(new)51 3/4 Minerals & Chern. 33 1/4 Su.peSrr.y -Rand Steel 25 7/8 64 1/2 EDMUND vI. TABELL vlALSTON & CO. INC. 45-44 50-48 32-30 25- 24 60-58 Thl'l mnrhct il'ttcr IS not. lind under no ClrcumstnnCcllS to he construed as, an offer to ell or a !\oilcitation to bu' any securities referred to herem The informatIon contluned herem IS not gunrantC(!d as to aCCurncy or completcness nnrl the thereof IS not, and under nu elreumstmees IS to be construed aI;, a representation Iby Walston & Co, Inc All expreSSlOnQ of OlllfllOn nre ;ubJcct to change v.ithout notice \Valston & Co, Inc., or any Officer, Director or Stockholder thereof, may have nn mtcrclt In the securltlC!l mentIOned herem. 'fhIS market letter lfltcnded and presented mcrei). as a general, lIlformal eommentary on Jay to Jay rrnrkgt neWb lIMa not as u complete analYSIS, AalhtlQnal IIlfl)rmatlOn With rClmect. to n-ny SCCUrJtJeS referred to herein Will be upon request ' li 3 1 '- . ——. 11. ii'''h..,aa,.,., iiL…Wii.ii.lii3TLi..;& . .rmn.. . . . 'i1tii ilL . .ift

NEW YORK — Walston &Co. – – – – – – – – I n c . – – Memben New York Stock Exchange PHILADELPHIA' LOS ANGELES SAN FRANCISCO BASLE (Sw;t,leod) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER August 31, 1956 At the week's intra-day low of 492.19 the Dow-Jones industrial average was near the first support area of 490-480. My technical indicator, which registered a sell signal in late July, has not yet entered oversold territory but is very close to doing so and thereby getting into a positior to register a buy signal. It would appear from the evidence at hand at the moment, that the buy signal be given somewhere in the first sup- port area of 490-480 rather than in the second demand area of 470-460. The next week or so should furnish the answer. -, ' -A'll-crf the-above fits into the that this -letter has stressed since the first of the year namely, that the market, as measured by the averages, will continue to hold in a broad trading area for all of 1956 and probably part of 1957 before advancing to a new and higher price plateau. In other words, my work indicates neither a broad advance nor a broad decline but a market in which individual issues will show excellent price action. For instance, the industrial average at the week's low was close to the 490 level which was the 3eptember high prior to the Eisenhower heart attack. The average has returned to the level of almost a year ago,but witness the action of three issues that this letter was continually recommending Approx. Sept.1955 High Close Aug.31, 1956 Dow-Jones Industrials Allegheny Ludlum Dresser Industries Joy Manufacturing 490 30 48 28 502.04 52 3/4 86 3/4 61 Listed below are the issues now in my recommended list for Capital Appreciation. This is a list for longer term holding, not necessarily shor,L term trading. SomeJssues-have ,been-,inthelist time and others have been recently added on the present price weakness. Present Price Alleghany Corp. Ludlum, Amerada Petroleum Black & Decker 8 1/2 53 109 49 Bristol Myers 36 Calgary & Edmonton 30 Carborundum Corp. 50 Carrier Corp. Chicago Corp. Columbian Carbon 59 25 50 Crucible Steel 61 Eagle Picher 40 Eastern Airlines Fansteel Food Machinery 70 Gen' 1 Dynamic s (New) 51 Gen'l Rwy. Signa'l– Hewitt-Robins 38 Illinois Central 61 Intern'l Nickel 106 Intern'l Petroleum 37 Johns Manville Joy Manufacturing 55 61 Kaiser Aluminum 63 Kansas City 30uth. 82 Price Recom. 3 3/4 16 103 19 37-35 16 42-40 60-58 24 50 60-58 22 47 45-44 51 50-48 59 25 64-62 90 3J 50 23 46 85-83 Yield 3.1 1.8 2.8 4.4 0.3 3.3 4.1 4.0 4.8 4.9 4.5 1.9 2.2 2.9 4.0 35 5.3 5.7 3.5 3.7 3.6 3.0 1.4 5.0 Advice Buy-Hold. Support at 8. Buy-Held. Support 49-47. Buy-Hold. Support 105-100. Hold.Upside potential 55-60. Buy. Supp ort 36 – 34 Buy-Hold. Support 29-28. Buy. Support 42-40. Buy. Support 60-58. Buy. Support 24. Buy. Support 50-48. Buy. Support 58-56. Buy-Hold. Supp ort 40 – 39 Buy-Hold. Support 52-50. Buy. Support 44-42. Buy-Hold. Support 69-65. Buy. Support 49-47. Buy-HolB. Support 85-82- 1 Buy-Hold. Support 38-36. Buy-Hold. Support 60-58. Buy-Hold. Support 100-95. Buy. Support 35-34. Buy-Hold. Support 50-48. Buy-Hold. Support 58-55. Buy-Hold. Support 60-55. Buy.Hold. Support 79-77 ThIS market letter IS not nn.1 under no CLfCllmgiunccs to be construed as, un offer to) sell or a sohcitlltLon to buy Iln sccufilles referred to herein The Iflformat!on contained herem 111 not g'unrantet!d to accuracy or and the furmshllll! thereof IS not, and under no Circumstances 19 to be construed as, a represen/ut!on by Walston & Co Inc All eXpr(!SSlOnll of opmiOn arc subJect to change wlthout notice \Valston & Co. lnc. or any Officer. DIrector or Stockholder thereo , may have nn mterest the seCUrltlC'S mentIOned hrem. ThiS market letter IS Intended and merely as II. general, mformal commentary on day to dny newq and not as a complete anal)SI'!. AddItIOnal mformatlOn With respect to an securities referred to hereIn \\111 be furmshed upon request I' I I I'I, ,,,.ii.,.a, 41.'.11. 'iM.. (tbUIItau -2- Present Price Price Recom. Magma 113 Masonite 42 Minerals & Chern. Monsanto National Dist. 27 North.Natural Gas 48 Northern Pacific Pacific Petroleum Pan Amer. World Air 18 Panhandle East.Pipe 95 Penn-Dixie Cement 38 Pitts.ton Company 55 Rayonier 39 Richfield Oil 74 Royal McBee 31 Scott Paper 68 Sperry Rand 25 Sunray Mid-Cont. 28 Sylvania Electric 52 Tennessee Corp. 51 United Airlines 39 I'lestern Pacific 73 Westinghouse Air B 32 Yale & Towne 33 – 75 40 32-30 31 24 48-47 40-39 11 12 92 39-37 45 75-74 31 70-68 25-24 25 49 50 40-38 73 33 18 —– Yield Advice Buy-Hold. Support 110-100. 4.1 Buy-Hold. Support 40-37. – Buy-Hold. Support 31-29. 2.5–00 Buy-Hora;-SupporC403S; 3.7 Buy-Hold. Support 25-24. 4.6 Buy. Support 48-45. 4.6 Buy. Support 39-37. Buy-Hold. Support 17-16. 4.4 Buy-Hold. SUP20rt 17. 3.2 Buy. Support e9-87. 2.6 Buy. Support 37-35. 2.2 Buy- 'Hold .Support 50-48. 3.6 Support 38-36. 4.7 Support 4.5 Buy-Hold. Support 30-28. 2.7 3.3 Buy-Hold. Support 67–65. Buy- – – Support 25-24. 4.1 Buy-Hold. Support 27-26. 3.8 Buy-Hold. Support 52-50. 3.9 Support 50-48. 3.9 Buy–Hold. Support 37-35. 4.1 Buy-Hold. Support 70-65. 3.7 Buy-Hold. Support 30-28. -4.5 Buy-Hold. Support 30-28. —– EDMUND W. TABELL WALSTON & CO.INC.

-, Walston &Co.——–lnc Members New yo,ok Stock EXchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw;t,Idl OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER September 7, 1956 After reaching a low of 492.19 on the Dow-Jones industrials on August 30th,the market rebounded strongly, reaching a high of 512.68 last Wednesda Profit taking came in at the end of the week and the averages closed at 506.76 today. As this letter has continually emphasized, action has been extremely diverse. Certain groups of showed excellent relative strength action during both the decline of 2-3 weeks ago and the advance of this week. By contrast, other groups performed rather poorly. Among the market leaders on both the decline and the advance were the steel, natural gas and aircraft manufacturing groups. These groups have been-consistently among the relative is logical to expect such action to continue. For this reason we have,over the past few months, placed equities from these groups in our recommended list and are continuing to advise purchase of representative stocks from these groups on any minor weakness. The steel group is represented in our list by Allegheny Ludlum and Crucible Steel. These two companies are stainless and high alloy steel pro- ducers and it is this segment of the industry which we feel will demonstra- te the best growth over a period of time. ALLEGHENY LUDLUM (55), which has been in our list for some time, was originally recommended at 16 and has a long term objective of 85. The com- pany showed earnings of 2.44 per share during the first six months of 1956 and despite the steel strike should better the 4.12 shown in 1955 over the full year. Steel price mark-ups and new plant additions indicate an improve ment in profit margins. , CRUCIBLE STEEL (65) is a newer recommendation and was recommended for purchase a few weeks ago at 58-60. The stock has been in a strong technical uptrend channel since 1954 and should continue in this channel under the impetus of increasing sales and improved margins. 1955 net was 8.05 a share and this figure should be equalled in 1956. The erratic showings which have characterized the company in recent years should be alleviated somewhat by recent heavy expenditures on plant and eqUipment. NORTHERN NATURAL GAS (48) Pa.nhanale' Ea-sternPlpe-Line are O onour'- recommended list as favored purchases in the natural gas group. The former has just broken out of a long trading range in which it has held since 1953 and this base appears to indicate considerably higher levels.A recent FPC settlement permitted the company to retain a large part of a rate in- crease collected under bond and under the terms of this settlement, full- year earnings should better the 3.20 (revised) per common share shown in 1955. Long range plans call for a new pipeline to tap rich Canadian reserve PANHANDLE EASTERN PIPE LINE (97) has investment merit both as a util- ity and for its own large natural gas holdings. The stock broke out strong l' from a three-year trading range a few months ago and the subsequent reactio has, as expected, held above th strong 90-88 support level. 1956 earnings should approach 6.50 per common share with a possibility of an increase in the current 3.00 dividend. Recently, no aircraft stocks have been included in our list. This group, as has been shown by its market performance over the past few months has been extremely volatile and speculative, but the continued high rate of defense spending appears to impart some predictability to near term re- sults. We are, therefore, adding Glenn L. Martin to the list. GLENN L. MARTIN (40) is one of the leading producers in the guided missile field.Earnings thus far this year have failed to compare favorably with 1955 due te a change technique. However,improvement is looked for in the third and fourth quarters and full-year earnings may ap- proach 4.50 per share.Substantial improvement should continue to be shown in 1957,based on indicated new orders for guided miSSiles and for the Navy Sea Master seaplane. TechnicallY,ability to penetrate the last remaining overhead supply at 44 would be most constructive and the 18-month accumu- lation base formed would indicate a possible 90. With the addition of Martin to our recommended list,we are elimina- ting Black & Decker which was originally recommended at 19.This stock has a long term potential of 55-60 but has advanced sharply since its original recommendation and we are,therefore,suggesting taking profits and SWitch- ing into other issues in our recommended list. – . ThiS market letter IS not and under no Clrcumstunces 15 to be construed as. an ofTer to !leU or a lItl.v llfU' fl;EQlitiGle!( referred to herem The mformatlon COntnllled herem IS not tt' to accurnc). or eompleteneis nnd the furnish1nj.! thereof i'!.b ernfth.r!iit'lee!f-b to be construed os, a rcpresentatlCln hy Wnlston & Co . Inc. All e'l(l)rCSlOns of OPInIOIl nrc subJect to change Without notiCe. or Stockholder thereof, may nn Interest Ifi the sccuntll'S mentioned herein ThiS market letter 1'1 intended and presenttlr nM'l!'Irayft'l \.!e'li't!rnP. Mrl')rnd.lYoJ'PimenWry on day to day m,lfkH nc\\'l and not as n complcte analYSIS AdditIOnal miormatlOn WIth respect to un). secUrities referred to herem will be iurlllshed upon request, WN 301 i.,llIla,IIIII h. . . . i .11,1

.- Walston &Co. Inc, –….;. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swaml,d) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER September 14,1956 BELL & HOWELL COMPANY Statistics One of the fruits of America' Current Price 42 current prosperity is that the Amer' Current Dividend 1.00 can worker at all levels is enjoyin Current Yield 2.4 an unprecedented rise in leisure ti and discretionary income, that por- Funded Debt 3,800,000 tion of his income available for 4.75 pfd. Stock 19,200 shs. spending on items other than the 4.2-5.cpfd. Stock – –.,20, .. Common Stock 521,194' shs. the fastest growing of American leisure time pursuits has been the Sales – 1956-E 45,000,000 hobby of photography. This hobby is Sales – 1955 42,100,000 now, being engaged in by millions of Americans, stimulated in part by th Earnings per Share-1956-E 4.00 growth in income and leisure time Earnings per Share-1955 3.51 mentioned above and, in part, by population statistics, which show Mkt.Range – 1956-1951 – an increasing number of babies bein born each year, thus lending impetu to the tendency to make photographi records of growing children. An active participation in the coming photo- graphy boom would seem to be provided by the common stock of Bell & Howell 'Company. Bell & Howell has, from its inception fifty years ago, enjoyed a reputation as one of the leading companies in the field of quality home movie equipment. The company manufactures a comprehensive line of amateur motion picture cameras and projectors, together with other types of amateur photographic and optical equipment. Within the past three years it has en- 1 of. via ltsModel 220 and 252 8 mm. models. These cameras, the-least expenslve of which lists for 39.95, are now being produced via assembly line methods at a record rate, and the company is now making plans to enlarge its distribution outlets and reach an even greater mass market through sales to photographic outlets such as drug stores, etc. A full line of accessories, complementing the new models, includes an inexpensive projector which may be used for the showing of home movies. A complete home movie outfit may now be purchased by the amateur for a little over 100. In addition to its less expensive model, Bell & Howell is conti- nuing to manufacture the quality products which have made it famous during the past fifty years. It is one characteristic of the photographic industry that after being broken in with a less expensive model, the photographer often wish- es to graduate to a more expensive and versatile camera. Bell & Howell's leadership in this high quality field is undisputed. Through its recently acquired TDC division, Bell & Howell makes other products which serve the amateur photography market. Among these are '35 mm. slide projectors and home stereo cameras. Over the long term these items are expected to demonstrate a growth trend approximating that of movie – – – — – – — – — ,Some 55 of Bell & Howell's products are sold to the amateur market, but the remaining lines would appear to have as interesting a growth potential. Bell & Howell's Filmosound projector is a standard fixture in almost all schools and with the hugely expanded school program and the grow- ing trend toward audio-visual methods of education, sales in this field should trend sharply upward over future years. Another product with a large potential is the microfilm field which Bell & Howell recently entered and which it shares with Eastman Kodak. In a relatively short space of time, , .. \ — -2- Bell & Howell has elevated itself to competitive status with Kodak in terms of new sales, and its new model reading-recording machine selling for approxi- mately 1800 – 2000 is expected to have growing application in offices of all sizes. Bell & Howell manufactures both micro-film and equipment which is distributed by Burroughs Corporation, thus affording outlets through an established office machines distribution setup. Another important potential for Bell & Howell products may be found in government sales which, although trending downward in recent years, may be expected to flatten out and increase as product line is revised. The Armed Forces are an important outlet for Bell & Howell sound projectors. In addition, the company manufactures gun cameras which are used extensively in jet training and is active in production of a number of guided missile parts. It is felt that military sales can increase in the future as Bell & Howell gears itself toward the new defense spending program. –'Asmay be- s-een fromthe above ,- a-g6cfd–deirl0-f-growth-po- tential in Bell & Howell products. This growth has been planned for and pro- vided for under the leadership of an unusually capable executive team. The current management has formulated a system of five-year planning under which sales, earnings, capital requirements and product introduction are charted- five years in advance. Under this system, Bell & Howell is able to make con- crete plans for expansion well into the future and is' able to introduce and formulate new products with a minimum of start-up costs. Currently, the plan calls for a continuation of the sales growth under which sales have multi- plied more than two and one half times since 1950. – Profit margins on projected increased sales will be protected by a comprehensive integration program under which Bell & Howell manufactures almost all the parts for its products, including die castings, gears, motors, lenses and even leather cases. !,S would be expected in a company of this type, new product development plays an important part in maintaining sales leadership. Among recent new products have been the revolutionary new electric-eye movie camera in which a built-in exposure meter automatically adjusts the lens opening to compensate for existing light. This is the first camera of this type whiC.!.. has ever entered commercial production and -sources as most revolutionary'developments in recent years. Under the five-year many other new products now in the development stages are charted for introduction and it is felt that these products will add considerable new volume to re-enforce the growth in other lines. An indication as to the future of Bell & Howell may be provided by a look at its past record. As mentioned above, sales have been increased from 16.8 million in 1950 to 42.1 million in 1955. Per share earnings have held down somewhat by rising costs but have still risen from 2.60 in 1951 to 3.51 last year. With averages' accruing from integration and modern plant and equipment, future profits are expected at a rate consistent with volume.Despite the fact that per share earnings were down to 911 in the first six months of 1956 from 1.11 last year on increased sales, management is estimating that per share results will be improved over last year's. Lower profit margin in the first half was due to start-up expenses incurred in introduction of new products and it is expected that these products will contribute to substantially increased Christmas volume. Earnings for 1956 should approach 4.00 per share on,possible sales of 45 million. The conservative dividend pay-out ratio (1.00 was paid in 1955) will probably remain in force as Bell & Howell follows the growth company policy of reinvesti-ng -earning-s-i-n;..the -possible-that dividend may be augmented with stock from time to time as conditions warrant. 10 stock was paid in 1955. Bell & Howell's strong fundamental position is re-enforced by an outstanding-technical pattern. A long term base built up in the 12-28 range during 1947-1955 has an indication of 95. Currently, ability to penetrate 44 would indicate an intermediate term 65. There is strong support at 41-38. The stock is herewith added to our recommended list as a long term capital appreCiation vehicle. AWTamb W. TABELL WALSTON & CO.INC.

Walston &Co.———Inc. Members New YOl'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Sw,h.d.ndl OFFICES COASt TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABEll'S MARKET LEnER 21, 1956 After backing and filling, the market declined sharply in the,early part of this week and at the intra-week low of 482.86 was in the 490- 480 support area. The market's action made it unlikely that the sell signal given on July 18th with the averages at 513.39 will be reversed for some time. Hov/ever, at the week 1 s lows many issues on our recommended list were close to support and could be considered eligible for purchase. It is to be remembered that selectivity will continue as the key to future action, and purchase of recommended stocks at their support levels should work out well in the long run. THE CARBORUNDUM COMPANY Statistics Current Price Current Dividend Current Yield 42 1.60 3.8 Many investors are properly conscious of the growth potential inherent in atomic energy. Many fail to realize that future atomic expansion will in' a large part be . Long Term Debt Common Stock 7,964,826 1,717,711 shs. carried on by old established companies which have a long history in other fields of manufacture. Sales-1956-E Sales-1955 105,000,000 89,830,000 Earn.per Sh.1956-E Earn.per Sh.1955 4.25 3.01 Mkt.Range 1956-1951 45 1/8 – 21 5/8 Carborundum Company may well be such an organization. Carborundum has for many years been a leading factor in the production of abrasives which are,of course, a necessity for the finishing of industrial products. Of late, it has been producing zirconium, a metal widely used in atomic reactors for the AEC. It is felt that at current levels Carborundum Iis fairly priced as a maker of abrasives and that little allowance is made in the price for the growth potential inherent in zirconium and other new products. The stock is, therefore, recommended for purchase as a long term investment. Carborundum has been producing abrasives and abrasive grains since 1891 and, together with one competitor, it dominates the abrasives field. Virtually' every manufactured item in our economy requires abrasives at one stage or another of its production. This activity, which now constitutes by far the most important phase of Carborundum's business, has demonstrated moderate growth over the past few years at a rate somewhat faster than the FRB Index of Industrial Production. It should continue to expand at this rate in the future. Working with abrasives naturally involves high temperatures and Carborundum has been working since 1922 with zirconium, a metal which has an unusual ability to withstand extreme heat. As atomic energy was developed in the post-war period, it also became evident that in addition to its heat resistant properties, zirconium also had the property of re- pelling neutrons rather than absorbing them, thus making the metal ideal for the lining of atomic reactors. Carborundum, through its subsidiary, Carborundum Metals, was the first commercial company to supply zirconium sponge to the Atomic Energy Commission. It is currently producing zirconium spongeat a rate estimated between 300,000 and 350,000 pounds annually and under a recently announced program, was given a contract to produce additional sponge at the rate of 500,000 pounds annually. This contract, in addition, carries an option for an additional annual rate of 400,000 pounds and industry sources feel that it is almost certain that the option will be exercised. Carborundum would thus retain its position as the largest producer of the metal. This m'lrkc; Jetter IS not and under no clrcumstnnces is to be construed as, an offer to Jell or a soliCitatIOn to buy any securities referred to herein The contnllled herem 15 not ';uaranteed liS to accuracy or completene'!s and the thereof 1'1 not, and under no Circumstances 1'1 to he a Ion hy \VnbtOl & Co \VNan mterC\!l Inc AU cXllre;SHms of oplnJon are subJect to chanl'tc WIthout notice 'YIoalston & Co, Inc. or any OffIcer, Director or securltlcs mentioned herem ThiS market letter IS Intendeu and presented merdy as a J!encrnl, Informal t()C on 0 er uuy to creo. (Jay r nC\\1I and not as a complete analYSIS AdditIOnal mformatlOn With rC'Spect to any SCCUrltlC'S referred to herem Will be furtlished upon oJ -2- In order to exercise the contract, Carborundum is building a new plant at Parkersburg, Virginia, with a capacity of 1.5 million pounds annually, thus allowing room for even further expansion. Although other producers were involved in the AEC contract it is to be noted that Carborundum's established position in the field will probably give it a more favorable cost basis than its competitors. Anoth;r bright spot in Carborundum's future is found in Fiberfrax, a ceramic which has unusual insulating properties. It maintains all its propeties up to 2300 degrees Fahrenheit, well above the limits any other lnsulator including asbestos, and a furnace lined with it .. able to reach operating heat twice as fast as one lined with conven- brick. After overcoming some initial production difficulties Carborundum is now installing machinery for full production and over'a period of time this metal may be expected to add to the company's profit potential. Carborundum is excellently managed and financed. The president of the company, Clinton F. Robinson (Maj. Gen. USA Ret.) has a distinguished record as an administrator and engineer in both the U.S. Army Corps of Engineers and Infantry. A functional staff of specialists whose primary responsibilities are the development of policies and progress reports directly to him. Ownership of some 50 of the outstanding stock by various Mellon interests should insure adequate financing for expansion as needed. At current levels, Carborundum is selling at fourteen times 1955 depressed earnings of 3.01 and at ten times the 4.25 estimated for this year. Over the past six years, Carborundum has been able to average about 3.50 per share of annual earnings mostly from abrasives production, a figure amply covering the current dividend rate of 1.60 and coming close to justifying current prices for the stock. Over a period of time it appears that zirconium, and other new products, will expand earnings substantially and that the stock has merit at current levels for participation in this expansion. The long term technical objective is 75 and strong support is encountered just below current levels. The stock is, therefore, recommended for purchase in investment accounts. , AvIT;amb EDMUND W. TABELL WALSTON & CO. INC. J

Walston &Co. – – – – – I n c . …;.. Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE SwHmld I OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER September 28, 1956 Although my technical indicator is quite a way from registering a buy-signal, the market has reached an important downside objective at 170-167 in the Dow-Jones 65-Stock average. This is also a very strong support level. Because of the recent decline, many stocks in my recommended list would appear suitable for accumulation on further weakness and support levels should be scrutinized very closely to provide clues for possible buying opportunities. One effect of the recent decline has been that stocks of prime ty now available at appear particularly attractive and are reviewed below. They are being added to our recommended list which will be reviewed in its entirety in a future copy of this letter. ; AMERICAN CYANAMID (67) is one of the largest and most diversified of America's chemical companies. Over 25 of its sales are derived from drugs, which are produced by its wholly owned subsidiary, Lederle Laboratories. – Lederle is prominently identified with antibiotics and is one of the lead ing producers of this type of wonder drug. In addition to its basic chemi- cal sales and extensive drug position, Cyanamid has numerous other avenues of growth. Formica Company, a leading plastics maker was acquired in April and a new acrylic fiber is affording entrance to the textile field. 1956 earnings should reach 4.50 per share and the 3.00 dividend affords a better-than-4 The technical position of the stock has, for a long time, been one of the best of the major chemicals. Technical objectives are 88 and 140, with strong support afforded at 65-63. GENERAL ELECTRIC (56) has recently reacted to the strong support area just above 55-53 and at current levels this growth stock would appear to be suitable for purchase in investment accounts. Sales of heavy electrical equipment. should increase over the near and longer terms as the capital . -goods boom continues, and consume-Flf,HiS shoulaaiso cont-iriue s'trong profit margins aided by price increases. strong emphasis on research and dominant position in its industry assure continued good results for-the longer term. 1956 earnings should be in the neighborhood of 2060 2.75 per share vs. 2.31 last year. Technical objective is 70-80, followed-by possible higher levels, with strong support as mentioned above, at 55-53. Petroleum-rich GULF OIL (113) has sold off sharply from its 1956 high of 147 1/2, ostensibly due to Suez developments. Although middle-East difficulties certainly provide a question, there is little doubt but what the matter must eventually be settled and Gulf's interests protected. Since current share prices place a value of about 19 cents per barrel on Gulf's oil in the ground, the stock would appear farly priced in relation to its potentialities. In addition to its huge half-interest in Kuwait, Gulf owns considerable interests in the United States, Canada and Venezuela. At current prices the stock is close to a strong demand area and appears eminently eligible for purchase. Steel stocks have been among the leaders in recent markets and have, for the most part,held extremely well during the latest market decline. Current prices make most just -support level and the stocks appear to be fairly priced based on best available estimates of future steel demand. U. S. STEEL (65),the industry leader, would seem to have special attraction at current levels. The outlook for the near term is for increased volume at better margins which should make up strike losse and bring full year earnings to a figure which should compare well with the ,6.45 shown in 1955. The 2.60 quarterly dividend could well be liberal- ized in the near future. The stock recently broke out on the upside of a long erading range in the 52-62 area and the-upside potential of this base is 90-97. Strong support is evidenced at 64-62. AI'fT amb EDMUND W. 'I'ABELL WALSTON'& CO.INC. Thl'l market letter 18 not, and under no cIrcumstances 1'1 to he construed as, an offer to or a sollC.ltatlOn to buy allY secunhc'l ref('rled to herem. The mformatlon Lontamed hereIn IS not guaranteed as to accuracy or completeness and the furnu;bmg thereof HI not, and under nu circumstances to be construed no., a representntlOn by W,hton & Co Inc of opmlon are subJect to-change wlthuut notlCe. W,lston & Co., Inc, or any OffIcer, Dltector or Stockholder thereof. roa) have ,n mterest the securItIes mentlmeu herem. ThiS market letter mt(nded and presenter3 merely as a general, mfurmal commentary on day to day ne…. s and not a'l a cumplete an,iysls Additional mformatlOn …. itb respect to any securities referred to herein WIll be furnIshed upon req\lest. WN 3 1

r Walston &Co. .- -. . . . . . . . . .- – I n c. . . . . . . . . . . . . . . . . . . . . MembeTs New YOI-k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (SwUm/.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LmER October 5, 1956 If one wishes to be interested in what the market is doing as reflected in the price swings of the various averages, the Dow-Jones indus- trial average met the first test successfully during the past week by holding in the strong 470-460 support level. The week's low on Monday of 463.83 was followed by a sharp rebound to 484.06 on Wednesday and a close for the week of 482.42, At the week's high, the market had, in a little over two days, recovered almost a third of the 60-point drop from the August 2nd high of 523.33. This recovery appears a bit too rapid and normal technical procedure appears to call for a re-testing of the lows by a possible dip to –around the 470 level.–If thi-s- price- acti-on occursoverthe-l'lextweek-,o.I'….–'ten days, it is possible that my technical indicator might register the first buy signal since the sell signal given late July. The lows of October 1st now become a rather important testing point, particularly if the current rally continues for another couple of weeks. A subsequent decline below 463.83 would suggest that trading between the double top of 523.33 of April and 524.37 of August was a distributional area with a downside potential of 430-420. This is the worst I could envision out of the present pattern. However, the action of individual issues indicate a very good possibility that last week's low in the industrial average will hold. All of the above is largely of academic interest. The action of many individual issues continues to bear little relationship to the averages and, as this letter has constantly stressed, this divergence is likely to continue for the foreseeable future in a market where the professional manager of institutional funds has taken over the reins from the shorter term trader. A study of the price action of over a thousand individual issues indicates that a sizeable group of stocks continue to show favorable action while another group still indicates lower levels and a still larger group show no Signs of any immediate move of great importance in either direction. various be a further extension of the broad consolidation area in which the general market has held for well over a year. It will be similar to the 1951-1953 consolidation area when the industrial average held in a 15 trading range for twenty-eight months. The present market has held in a similar trading area for only fifteen months. Among individual the steels have been outstanding. U.S. STEEL at Friday's clcseof67 3-4 ',as still higher than on August 2nd despite the fact that the industrial average is 45 points lower. The same applies to the two metallurgical steels in our recommended list, ALLEGHENY LUDLUM (53 and CRUCIBLE STEEL (60 All three of these issues appear attract- ive on minor weakness. Three other recommended issues, GENERAL RAILWAY SIGNAL GLENN L. MARTIN 89518)and NATIONAL DISTILLERS (285/8 )are also selling above August 2nd prices and continue to show very strong rela- tive strength action. Other issues in our recommended list that appear at- tractive because of either good relative strength action or because they are near strong support levels include – Price SUI2I2ort Level — – —– American Cyanamid Bell & Howell Carborundum Corp. Columbian -Carbon -. Eagle Picher Food Machinery Magma Copper Northern Natural Gas Panhandle Eastern Western PaCific 69 3/8 40 3/( 41 1/4 48 3/4 43 63 107 47 1/4 94 3/4 68 1/2 63-58 37-35 -.— 40-38 -4'( 40-38 63-58 100-95 46-44 87-83 67-63 – – — kll of the sixteen issues mentioned above have substantial upside potentials over the longer term. EDMUND W. TABELL WALSTON & CO.INC , ThlS market letter 18 not, and under no circumstances 19 to he construed as, an offer to sell or a 6ohcltataon to buy Ilny secut'ltle'i referred to herem. The con taL ned herein lS n(;lt guaranteed as to or complctcnc'ls and the furmshmg thereof I' not, and under no CLrcumstnnccs IS to be rer;CSC1tntlo by Walston & Co Inr All expressions of opinIOn are 'lubject to change Without notice Walston & Co. Inc, or any Officer, Dlredor or toe 0 er ereo, ffikllY have an Interest the mentIoned herein. ThiS market letter IS mtendcd and merely as a general, InfOrmll rommenlary on to news and not R8 1I complete nnalysis AddltlOnalmformatlon With respect to any IICCUrltlCS referred to herem …. 111 be furnished upon request /' /' ..

WalstIoncn, &Co. Membe1's New Y01'k Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN fRANCISCO BASLE (Sw,hl.nd) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM I I, TABELL'S MARKET LETTER October 12,1956 The stock market, as measured by the Dow-Jones average, continued to advance last week reaching a high of 491.18. It is problematical just as to how far the advance will continue, but normal technical action would call for a 1/2 to 2/3 retracement of the cO-point decline. This would indicate an objective somewhere in the 490-500 area which coincides with the heavy overhead supply at 500. This letter continues to stress, however, that the action of the averages is secondary to that of indiVidual issues and continues to recommend the purchase of attractive issues close to suppoJ levels, regardless of the action of the general market. . EAGLE PICHER COMPANY Statistics Eagle Picher was originally Current Market Current Dividend Current Yield 43 3/4 2.20 5.0 recommended by this letter some years ago at a price of 22. At the time it was felt that management', efforts to diversify and expand il Long-Term Debt Common Stock 15,000,000 1,077,677 shs. to fields other than lead and zinc would eventually payoff in sharp expanded sales and earnings. It Earnings per Sh. 1956-E 5.50 pointed out that, by 1954, the cor Earnings per Sh. 1955 5.06 pany had become a rr.ajor supplier ( automotive parts, cellophane and Sales,1956-E 120,000,000 polyetheline food wrappers,plasti 5ales,1955 114,480,000 and various other products supply Mkt. Range 1955-56 47 3/8 – 27 a wide range of industries. Indee(, the portion of zinc and lead sale to total sales had been reduced t 30, and 70 of sales were in outside lines with the auto industry a major customer. Under stimulus of this diversification, common share earnings expande sharply from 1954 into 1955. Earnings reached 5.06 per share vs. 2.47. In 1954, sales were close to 115 million vs. million. In however, the company felt still anothe,r favorable effect of its diversificaticn program, namely, the stability by serVicing numerous industries rather than a single industry. ThUS, although the com- pany is a major supplier to the automotive industry, earnings for the first three quarters of the fiscal year to end in November were 3.63 per common share vs. 3.36 the year before. Full-year earnings are estimated in the neighborhood of 5.50 vs. 5.06. 1956 figures exclude a non-recurring profit of 1.38 arising from the sale of Mexican mining properties. The lack of a dynamic improvement in earnings so far this year has caused Sidewise action in the stock despite the fact that the small im- provement shown must be regarded as a major achievement conSidering the fac i that sales to the auto industry during 1956 were off sharply. With auto salE picking up in 1957, earnings could well approach 6.50 or more per share, making the stock seem rather underpriced at current levels in the low 40s. One major questionmark is,of course, the government lead and stoc'kpiling program which is due to expire in December and mayor may not be continued. Many industry experts feel, however, that the program will probably be continued and even were it to terminate, only a temporary squeeze on profit margins would take place. Therefore, even with discon- tinuance of stockpiling, 1957 net should compare well with priced at eight tim'es earnings and affording a 5 yielr1 1cn95-6t.hCe ur'rently recently increased 2.20 dividend, Eagle Picher seems to represent an outstanding vehicle for capital growth. The stock has a long term technical objective of 61 followed by 97. For the near term, an upside breakout of the 39-43 range in which the stock has held for most of the year would indicate 51. Strong support is evidenced at 41-39 and the stock is recommended for purchase for income and 'capital gains accounts. EvlT lamb EDMUND vi. TABELL WALSTON & CO. INC ThIS market letter is not. and under no Circumstances 15 to he construed as, an offer to '1ell or (l soiLcltntlOn to buy any seCUritIes Feft'rred to herem The mformation contained herem IS not gUllrnntced as to ,\CcurliCY or completeness dni! the iurnishlflg thereof IS not, and under no Circumstances IS to be construed as, a representatIOn hy Walston & Co, Inc All expreSS10ns of opmlon are subJect to chanRc without notice Walston & Co, Inc. at any Officer, Dlreetor or Stockholder thereof, may hllH' un interest In the securities mentIOned herem ThiS market letter IS intended and plescnted mereh as 11 generui. mformal commentary on day to day news und not as Il complete nnnlYSls Addlt10nal Information With respect to any S('Lurltlcs referred to herem Will be furnished upon request \\ N 301

Wdlston &- Co. Inc, .;…………. 111embe,'s New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO BASLE (Swit,ld) OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LEnER October 19, 1956 General strength characterized the stock market during the last two days of this week as the Dow-Jones Industrial Average carried forward to 489.46,as compared with a low of 481.57 on Thursday and a high of 493.01 on Monday. The Dow-Jones 65-Stock Average reached 173.41 compared with Thursday's low of 170.62 and a Monday high of 174.08. Based on probabilities, it appears that my technical indicator will finally give a buy signal some time in the latter part of next week. This buy signal will be the result of a strong positive market trend rather than an oversold condition. Reasons for the strength are not hard to find. Political polls continue to report unexpected strength for Mr. Eisenhower and .. to be -ltttle doullt orMs election. This is in contrast t'o the'feefing' -, – which prevailed a few weeks ago when the Democrats appeared to be drawing converts and there was talk of the Maine a'nd Alaska elections and a farm revolt. Despite Mr. Eisenhower's great personal popularity and the near certainty of his being re-elected however, there appears to be little chance that the Republicans will capture control of Congress so that we appear to be facing another period of a Democratic legislation oppossed to a Republican executive branch. The favorable political picture probably has a great deal to do with the recent and anticipated stock market strength. It does not, how- ever, in any way alter the prediction made by this letter a year ago that selectivity will be the key to stock market success. Our original tion of a trading range in between roughly 525 and 440 for the Dow-Jones Industrial Average was for the year 1956 and so far it has been close to being correct. There is little reason at this point why the same type of action should not continue through most of 1957. This prediction is based on many technical factors, one of the most important of which consists of studies of total trading volume. The 25- week moving average of volume of trading on the NYSE reached a peak of around 390 million shares in March, 1955 and shortly afterward dropped off sharply to a current level in the neighborhood of 250 – 300 million shares. To grasp the significance of this decline,however, it is necessary –to -break-it and downside days when the market closed up and on days when the market closed down. When volume reached the 390 million share peak in March,1955, about 260 million of this was upside volume as contrasted with 130 million downside volume. The latest study showed a negligible rise in liquidating volume from 130 million to 140 million so that the entire drop has come from waning upside volume, a drop from 260 million to 120 million shares. In- deed, upside and downside volume have over the past eight months been run- ning approximately even. Based on this and on other technical studies, plus a fundamental study of price earnings relationships of leading stocks,there is no reason to expect a rampant bull market at this point. Neither is there any reason to expect a general decline. It is, as we have repeatedly emphasized, a market where selectivity will be most im- portant,where individual issues will strongly outperform a lackluster stock market. It is to this type of issue that the investor should confine himself. Attractive issues at this point can be grouped into two classes. First, securities whose relative strength has been exceptional,which have moved up in the face of sidewise action in the general market.Prime examples of such equities are most steel stocks where an improving near and long term earnings outlook has been reflected in advancing prices for the shares. The second group of stocks which would seem to have appeal at this point consists of securities which have experienced consolidations or ions in price and which now appear close to support levels.Many such securities may be discovered by a study of our recommended list. In summary, the outlook is for a stock market during which the investor, in order to do well, must critically examine the technical and fundamental position of every issue in his portfolio. He must ask himself in the case of each security whether there is an objective reason for holding it, or whether better opportunities would be available elsewhere. Selection and analysis will pay dividends, regardless of the action of the averages. EDMUND \'/. TABELL AvlT '! amb vlALSTON & CO. INC mal kct letter 1'11101, and under no circumstances IS to be construed ns, nil offer to sell or n follcitatlOlI to buy nn securIties ,referred to herem. The contamed herem IS not guaranteed ns to nccurac) or complctcnc'It and the furmshmj.( thereof IS nt, and u,nder nn cLrcuomr',tnncCblS to;,c I \'1 I 8.. C I All n r opmlOn nrc subJect to change without notice \\'dlston & Co, nc, or nny Icer, Irec r or oc thCc herem ThiS market letter mtended and pre'ltnted mer…ly as a i'!llbral' mfohdal commenta;y on day to news and not as a eomplcte analysl' Additional information wIth respect to any BC'CUrltles referred tu herem 'I e urnlS e upon rcqucs may k

&Co.WalstonInc.- Members New York Stock Exchange NEW YORK PHILADELPHIA LOS ANGELES SAN FRANCISCO 8ASLE Sw;hedd OFFICES COAST TO COAST CONNECTED BY OfRECT PRIVATE WIRE SYSTEM TABELL'S MARKET LETTER October 29, The industrial average, at the week's low of 478.29, has retraced about half of the sharp advance from the October 1st low of 463.83 to the mid-October high of 493.01. This appears to be a sufficient technical correction of the too rapid advance and the market should be in a position to move ahead again over the shorter term. From the present pattern of my technical indicator, it is probable that a buy signal will be given early in the week – possibly on Monday. The rise will be selectivE. (j TIMKEN ROLLER BEARING COMPANY Statistics Timken Roller Bearing is the country's largest producer Current Price 90 of tapered non-friction roller Current Dividend 4.00 5.00 bearings, supplying the major pro- Current Yield 4.4 5.6 portion of domestic requirements. Sales and earnings, while cyclical, Funded Debt & Pfd.Stock None have over a period of years shown Common Stock 2,421,380 shs. an underlying growth trend due to the company's aggressive effort Earnings Per Share-1956-E 10.50 to diversify and broaden its mar- Earnings Per Share-1955 9.13 kets. Thus, although the auto indus- Sales-1956-E 220,000,000 try is the major customer,increasing Sales-1955 196,100,000 amounts of bearings have in recent years been supplied to railroads, Market Range,1956 92 – 62-t machine tool and industrial machiner manufacturers, road machinery and farm implement makers and the paper andsteel indu;trie..&.Due di\'e.r.sificaUon, 195-6earningswill better last year's 9.13 per–c-ommon share, desp-iTe the drop in' 'aut-o in- – dustry output. Net sales will also be some 10 ahead of last year's 196.1 million. A dividend paYout equal to last year's 4.00 is the mini- mum expectation with a strong possibility that a larger year-end extra may bring total 1956 dividends close to 5.00 per share. It appears that, due to increasing demand for Timken's products from a number of sources, the company may be embarking upon a new phase of growth. This growth can be financed entirely through internal means as the company's entire capitalization consists of 2.4 million shares of common stock and net working capital is a huge 60 million or almost 25 per share. The rising demand. for Timken's products mentioned above can be expected to come mainly from two sources the auto industry and the rail- road industry. During recent years, under continuous urging by Timken, the auto makers have made a great deal of progress toward standardizing the number type of roller bearings used in their cars. Due to this standardization, Timken has been able to construct a high-volume,almost fully automatic, assembly plant at Bucyrus,Ohio. It is understood that this plant has by far the most favorable cost structure in the industry and is able to produce bearings at record low prices. The plant was en- gineered and developed entirely by Timken and it is expected that it will enable Timken capt-urea growing market. -;— Perhaps the most dynamic expansion possibilities for Timken, however, lie in the railroad field. It is a commonly accepted fact that freight cars operating on roller bearings far more than justify their extra cost in maintenance savings as compared to cars equipped with the standard journal box friction bearing. Heretofore, railroads have been reluctant to equip their cars with roller bearings due to the fact that the cars might well spend a good portion of their life on other lines and little of the advantage would accrue to the railroad owning the cars. However, under constant prodding by the Association of American Railroads, This mnrket letter IS not. 1L1lt! UllLler no circumstances IS to he construed as, nn offer to snH or '!- solicltnhon buy any to ,;cr;ll. conttune1 her(!ill IS not guaranteed as to accuracy or completeness and the thc,re.of,ls not& 'Cnod ut er II Walston & Co Inc AU expreS'lIOIl'l of oplnJon are subJect to change Without nobce ston ,ne., 301.In mterest the seeulltlCs mentiOned herem market letter IS mtended and pre&cnted mereh liS a no or calnfcyuOfsf I Ienerai, mfohdal eommcntay on day thereof, may kt to dRy.;;/ nc\\'1 anci not as a complete analySIS Ad(htlOnal mformallon With respect to any referred to herem will he furllls e upon reques . '''dry Ii L td r)….. .- .. ……. / — ..— – .4 ,,'-.- – – – – – – – – – – – – – – – – -2- the roads have of late been far more active in installation of roller . . bearings. This demand has been haghtened by the fact that, with diesel- ization almost complete,the roads have more money to spend on other ' forms of capital improvement and by the fact that Timken has been able \ to sharply reduce costs of roller bearing installation. To supply the new railroad demand, Timken has made plans for an automatic assembly line at Columbus, Ohio, incorporating the advanced features of the auto bearing plant at Bucyrus. This facility will be in operation by mid-1957. . An idea of the potential size of the railroad bearing market can be shown by the fact that according to the latest figures there are more than two, million .fr.eight cars. operating in .the. Uni-ted- Sta-tes.-Of -, these, only 28,000 are now equipped with roller bearings. Thus, Timken appears to be in a position where it will be faced with sharply expanding demand over the next few years. With finances more than adequate to meet any additional capital needs, the fruits of this demand should show up directly in per-share earnings. Another plus factor in meeting the demand will be the company's integration. It is currently, in addition to being a bearing manufacturer, an important alloy steel producer with an annual ingot capacity of 700,000 tons. About one-third of this capacity goes into Timken's own products with the other two-thirds being sold. As more bearings are produced, steel production can obviously be diverted to Timken's own uses and with the anticipated large demand for alloy steel continuing, profits should be realized by sale of the remainder of output. The outlook for rock bits, and other miscellaneous items, contributing a small portion to Timken's sales, aTso continues favorable. As mentioned above, 1956 sales are estimated at 220 million, with net earnings at between 10 and 11 per common share. For 1957, sales could well reach 250 million, with earnings of 13 to 14 and .A-..continued-expansion-w.i-l-lprG.bably -be-shown i-Rto;1958 capitalization and hugewcrking- capital posi.tin provide the stock with a high investment rating and permit a fairly high rate of dividend payout. '- -.- The nearer term technical objective is 104 followed by much higher levels over the longer term, with a price level of a possible 200 or more. There is strong support just under the current market. The stock is recommended as an excellent vehicle for capital appreciation combined with generous income. AWTamb EDMUND W. TABELL WALSTON & CO.INC.