TEXAS BUSINESS REVIEW A Monthly Summary of Business and Economic Conditions in Texas BUREAU OF BUSINESS RESEARCH THE UNIVERSITY OF TEXAS VOL. XXXI, NO. 4 TWENTY CENTS A COPY-TWO DOLLARS A YEAR APRIL 1957 B HI During the past couple of decades American business has been experiencing a number of revolutions in various , aspects, ranging from incorporation ~-· '""~ of a modified guaranteed annual wage clause -~-~~~:::;a~ in automotive union contracts to a shift to jet propulsion on the technical side of aircraft production. On the quieter side another revolution has been going on during the same period. That development is the acceleration of interest in the history of American business. See page 6. The Business Situation in Texas By JOHN R. STOCKTON Total business activity' in Texas during February showed very little change from January; there were no signs of any serious decline. The index of business activity compiled by the Bureau of Business Research remained unchanged from January after adjustment for seasonal variation. There is always some divergence in the trends of the vari­ous components that go into the composition of the index, as shown in the table on this page. Three of the components rose, one was unchanged, and four declined. The retail sales component, deflated to remove the effect of changes in the price level, receives the heaviest weight in the composite index of business. This series remained unchanged from January. Industrial electric power con· sumption, total electric power consumption, and crude oil production registered gains over January. Freight car· loadings, crude oil runs to stills, ordinary life insurance sales, and buildings authorized declined from January. The two latter series were adjusted for changes in the level of prices. This behavior of the component series shows no sig­nificant pattern and suggests that the level of Texas busi­ness has apparently stabilized for the present. However, past experience indicates that such stability cannot be ex· pected to be maintained for very long; the question im­mediately arises as to whether the c4ange, when it comes, will result in a resumption of the long rise that continued without interruption from 1953 to 1956 or will mark the beginning of a recession period. Some important information has recently' been released on the prospects for several strategic factors in the Texas business situation. Probably' the most important elements that will affect the level of business during the coming months will be industrial expansion, construction, and con­sumer durable goods. Although other p}iases of business represent a fairly large proportion of total activity, the prospects of drastic change are much less than in the factors listed above. For example, consumer expenditures for nondurable goods and for services represent a large part of the total business activity in the state, but these expenditures tend to be rela­tively stable from month to month. The Securities and Exchange Commission and the De­partment of Commerce have released a survey of capital­spending plans of business made during February and early March. Although businessmen are planning to spend more in 1957 than in 1956-setting a record for the third suc­cessive year-1957 plans will be only 6.5% greater than 1956. This is substantially below the 22% increase realized INDEX OF TEXAS BUSINESS ACTIVITY AND COMPONENT SERIES (Adjusted for aeasonal variation, 1947-49 =100) F eb J a n Percent Index Weight 1957 1957 cha nge TEXAS BUSI N E SS ACT I VITY (COMPOSITE) ····················----·-·----··-·­100.0 R etail sales, deflated t ..... -·-·························-· 46.8 178* 143 178* 143 •••• Industrial electric power consumption .... 14.6 354• 326* + 9 Miscella neous freight carloadings ----·------­l(}.O 87 93 -6 Building authorized, defiatedt .................... 9.4 132* 155* -15 Crude petroleum production -------------­8.1 142* 140* + 1 Ordinary life insurance sales, defiatedt .... 4.2 273 314 -13 Crude oil r uns to stills -------------------------­-----­3.9 146 154 5 Total electric power consum ption ............ 3.0 317* 300* + 6 *Prelimin ary. **Change is less than one-half of one percent. t Adjusted for price change and expressed in 1947-49 constant dollars. Texas Business Activity Index • Adjusted for seasonal variation • 1947-1949=100 1940 '41 '42 ·43 '44 '45 '46 ·47 '48 '49 '50 '51 '52 ·53 ·54 ·55 '56 ·57 TEXAS BUSINESS REVIEW INDEX OF WHOLESALE PRICES IN THE UNITED STATES (1947-49 -100) Source: Bureau of Labor StatistiCI!, U.S. Department of Labor 1957* Feb Mar Index Mar la Ma r 5 1957 1956 ALL COMMODITIES ........ 116.9 116.8 117.0 112.8 Farm pr oducta .............................. 88.9 88.5 88.8 86.6 Processed foods ............................ 103.9 103.5 104.0 99.2 All ot her .......................................... 125.3 125.3 125.5 121.0 *Indexes shown are weekly and are calculated as a percent change for the latest published monthly comprehensive index. The weekly index is based on the actual weekly prices of a small sample (approximately 200 commodities) of the commodities included in the monthly index and on the estimated prices for all other commodities. in 1956 over 1955. When the rise in costs is taken into ac­count, it is possible that the increased spending in 1957 may not represent any more physical assets acquired than last year. Some analysts have expressed concern over the small in­crease expected in 1957, but this opinion apparently over­looks the fact that capital expenditures in 1956 were ex­tremely high. If the level of spending in 1957 equals that in 1956, it will be a very good year and will give sub­stantial support to business activity. There is no separate tabulation of spending plans for Texas, but it is certain that the continued expansion of in­dustry in Texas depends primarily on the rate of capital expansion for the country as a whole. The high level of in­dustrial expansion during 1956 in Texas successfully off­set some declines in other segments of the economy; it ap­pears that 1957 business in Texas will continue at a high level if industrial expansion in the nation holds up as well during the year as the SEC-Commerce survey indicates it will. Some of the largest increases in capital expenditures are planned in industries that have been expanding rapidly in Texas, such as nonferrous metals, aircraft, chemicals, and nonelectrical machinery. If the expansion plans of these industries are carried out, it would seem assured that !he volume of Texas industrial activity" will continue to mcrease. Construction activity in February showed no signs of reversing the trends that have been present since 1955. The value of building authorized in Texas in February de­ clined 15% from January. In comparison with a year ago, the volume of building authorized declined 11 %, but be­ cause of rising costs during the past year the value of building authorized actually declined only 7%. Nonresidential building declined in February, although this type of construction has been holding up better than residential over the past year. It is generally believed that nonresidential buildings and other types of construction (such as highways) will continue to expand and, in gen­ eral, will offset at least some of the decline in the building of houses. In Texas, the trend of the nonresidential build­ ing index has been upward while the residential building index has been falling, but the rise was not enough to lift the index of total building. The number of housing starts in the United States in February dropped to an annual rate of 910,000, the first time since 1951 that it has fallen below 1,000,000. Pre­ dictions are that the total number of starts in 1957 may drop to 800,000. The record of building in Texas indi­~ates. that the decline in building in the country as a whole is bemg paralleled closely by the situation in the state. The third strategic element in the present business situ­ation is the rate of consumer spending for durable goods. The continued high level of consumer income seems to in­sure that the spending for nondurable goods and services will be maintained, but there is considerable uncertainty about the prospects for durable goods such as automobiles, appliances, and furniture. The seasonal peak of automobile sales is approaching, and considerable anxiety is felt con­cerning the strength of consumer demand. After reaching an all-time high at the end of December, total consumer credit outstanding declined during January as repayments reached record levels and the volume of credit extended declined sharply. In spite of this drop, the level of consumer credit outstanding is still very high and causes some worry with respect to the volume of durable goods that can be sold during 1957. The Federal Reserve Board recently has released its annual survey' of consumer attitudes. This survey shows the s_ame percentage of families planning to buy new auto­mobiles as last year but an increased percentage of families planning to buy a used car. The percentage of consumers planning to buy a house was substantially lower than a year ago, but a slightly larger percentage of consumers plan to buy furniture and major appliances. Plans for home improvement and maintenance were reported by more consumers than last year, and the average expendi­ture was higher. In general the survey indicates that consumer spending for durable goods will continue without much change hut it does not appear that this category can he depended ~pon to supply any substantial increase in business activity. These reports have been reasonably accurate in the past. They seem to support the conclusion that spending for durable goods in Texas will show no substantial change this year. Prices continued to rise during February, but with a decline in the price of farm products the rise in all com­modities was very slight. The consumer price index set an­other record high in February. The steady increase that has prevailed in this index for a year has been due almost entirely to the rise in the price of services, such as rent medical care, and personal care. The prices of commodities: such as food and clothing, have risen much less than the services. This is a significant aspect of the present inflation that is frequently overlooked. The index of bank debits in Texas cities declined 3% in January after an unusually sharp rise the previous month. Teus Bank Debits Index , Adjusted for seasonal variation , 1947-1949·100 250 250 l f"lj 200200 '" 1.../1r-v. 150 150 .rJ 'I' I 100I / ~- 100 Iso L,v.r v .,_,....,, WV 50 0 1940 "'1 ·42 ·.43 ·44 '45 "46 '47 '"8 ·49 '50 ·51 ·52 '53 ·54 ·55 '56 ·57 0 REVIEW TEXAS Editor_________ _ ___________ _ ______________ _ ______John R. Stockton Managing Editor__ _ ___ _ ___ __ _ _ __ ____ __ __ ____ Roy J. Cates CONTENTS Business History -----------------------------------------------------­The Business Situation in Texas_____ _____ __ ____ _____ __ __ ___ _ 2 Construction -----------------------------------------------------------­4 Retail Trade ------------------------------------------------------------9 Agriculture --------------------------------------------------------------11 Industrial Production ----------------------------------------------13 Finance --------------------------------------------------------------------16 BUSINESS RESEARCH COUNCIL William R. Spriegel, Dean of the College of Business Administra­tion (•o; officio); J, W. Cashin; A. F. Etier; J , L. Hazard; Eastin Nelson; and G. H. Newlove. BUREAU OF BUSINESS RESEARCH D>r.ctor Assiatant Director ReB6arch Supervisor Resovrces Specialist A. Hamilton Chute Richard C. Henshaw, Jr. Francis B. May Retailing Specialist Statistician Re11eMch Scientist RoyJ. Cates Anne K. Schuler Robert H. Drenner Research Aeaociate Research Aesociate Research Associate , Marjorie T. Cornwell Tina Piedrahita Laura Bartos Administrative Clerk Statistical Astliatant Statistical Astliatant Judy Vaughan Jean J. Harrison Roberta Steele Senior Secretarv Senior Secretarv Cartographer Raymond C. Owens James H. Keahey B•trice Friedman Off.et Press Operator Editorial Aetliatant Statistical Technician Grace H. Cashat Anna Merle Danz Libra111 Anistant Clerical Assistant Assistants Alice M. Baghdassarian, Sylva M. Bowlby, Charles E. Chick, William A. Forkner, Willard L. Graves, David Grey, Allen B. Heard, Thorndike D. Howe, Sue M. Kennamer, John S. Lauer, Clifford E. McCormick, Jr., Judith A. Melton, Marsha A. Murray, Candis R. Pattillo, Marie Payne, and Clyde R. Williams. Published monthly by the Bureau of Business Research, College of Business Administration, The University of Texas, Austin 12. Entered as second class matter May 7, 1928 at the post office at Austin, Texas, under the act of August 24, 1912. Content of this publi­cation is not copyrighted and may be reproduced freely, Acknowledge­ment of soarce will be appreciated. Subscription, $2.00 a year; Individual copies, 20 cents. Construction: FEBRUARY AUTHORIZATIONS DIP By RICHARD C. HENSHAW, JR. In comparison with January, construction authorizations in February dipped 15% after adjustment for a normal seasonal decline due to a fewer number of days. Construc­tion authorizations (excluding federal projects) during the first two months of 1957 were almost equal to those of the first two months of 1956. Because of the highly erratic nature of construction authorizations, little faith can be placed in the figures currently available as an indicatoi: for the remainder of 1957; nevertheless, the February show­ing fell below the more optimistic expectations. Factory and workshop authorizations declined in Feb· ruary hut are up 222% for the first two months of this year over the same period last year. Experience in Texas this year is consistent with national expectations regarding bus­iness intentions to invest in new plant and equipment dur­ing 1957. According to the latest joint survey of the Securi· ties and Exchange Commission and the U. S. Department of Commerce, businesses in the United States plan to in· crease their expenditures for new plant and equipment this year by 6.5% above 1956. ESTIMATED VALUE OF BUILDING AUTHORIZED Source: Bureau of Business Ra!earch in ceoperat!on with the Bureau of Labor Statistics, U . S. Department of Labor January-February John R. Stockton Stanley A. Arbingast Florence Escott F eb• Percent Classification 1957 1957 1956 change CONSTRUCTION CLASS ALL PERMITS --------­New construction ----­----­------­-----­­76,930 67,702 173,294 155,648 169,642 154,958 + •• Residential (housekeeping) 42,124 87,331 80,339 + 9 One-family dwellings ---­---­ 40,472 84,237 75,429 + 12 Multiple-family dwellings __ 1,652 3,094 4,910 -37 Nonresidential buildings --­--­ 25,578 68,317 74,619 - 8 Nonhousekeeping buildings (residential) ---------­--------­­ 595 754 627 + 20 Amusement buildings -----­-­Churches --­-------­------­---­---­------ 432 2,927 688 5,624. 290 4,340 +137 + 30 Factories and workshops __ 2,005 7,302 2,267 +222 Garages (commercial and private) ----­------------­-­ 381 927 597 + 55 Service stations ------------­--­--­- 866 1,970 2,116 - 7 Institutional buildings ______ 142 1,929 1,486 + 30 Office-bank buildings --­-·--­ 2,734 6,502 30,065 -78 Public buildings! -----­---­-----­ 782 5,987 369 +l,522 Works and utilities ----­------­ 581 2,297 715 +221 Educational buildings ---­---­ 10,422 24,987 19,110 + 31 Stores and mercantile buildings ---­-­------­--­----­--­---­ 3,394 8,832 11,961 -26 Other buildings and structures ------­------------­--­--­ 316 518 676 - 23 Additions, alterations, and repairs ----­----­---­-------------­-----­ 9,228 17,646 14,684 + 20 METROPOLITAN vs. NON­METROPOLITANt Total metropolitan --------------------59,596 138,475 130,460 + 6 Central cities ----------------------------53,234 126,333 112,781 + 12 Outside central cities ------------6,362 12,142 17,679 -31 Total nonmetropo!itan --------------17,334 34,819 39,182 -11 10,000 to 50,000 population_ 11,982 25,899 28,343 -9 Less than 10,000 population_ 5,352 8,920 10,839 -18 Only building for which permits were issued within the Incorporated area of a city is included. Federal contracts and public housing are not included. •Preliminary. t As defined in the 1950 Census. tState and local government buildings. **Change is less than one-half of one percent. TEXAS BUSINESS REVIEW Major new projects of this nature authorized in Texas during February and the first half of March include the co~structi~n of a new multimillion dollar refinery proc­essmg umt for the American Oil Company in Texas City and an addition of similar magnitude and type to the Bay· town facilities of Humble Oil and Refining Company. PUBLIC . Public construction, including federal, state, and local, lS another category of construction which is currently of strategic importance in bolstering the level of general busi­ness activity as well as the construction industry itself. Major public construction projects recently announced include $9 million for paving of runways at Bergstrom AFB, near Austin, and a $3-million contract for the con­struction of roller gates, hoists, and cranes at Anzalduas Diversion Dam, near Mission. Many other public construe· tion contracts of large magnitude (although smaller than the two mentioned above) have been let in the past six weeks, especially for water works and distribution lines and for varied projects at the many Air Force bases in the state. Complete data on federal construction during the first two months of 1957 are not yet available, but there is little doubt of the stimulus that federal expenditures will have on local business conditions in Texas this spring. EDUCATIONAL Although educational construction authorizations were down in February in comparison with the whopping $15 million authorized in January, they remained the single largest category of nonresidential construction (over $10 million) for February. The war babies who are taxing the capacity of the high schools today will be crowding into colleges within the next two years. Birth rates both during and since World War II indicate that this trend will continue; no letup is in sight. This situation is reflected in the recent an· nouncement by President Logan Wilson of The University of Texas that eight new buildings must be constructed and three others expanded (Texas Constructwn Journal., March 6, 1957). Public and parochial schools, which educate the bulk of the youngsters prior to college, are confronted with a seemingly endless flow of pupils and are hard pressed to increase their capacity and to modernize and repair facili­ ties. Large educational projects authorized in February and the first half of March include the Midland Independent School District's construction of two elementary schools and a junior high school which will cost $1.5 million. The Robert E. Lee Junior High School in Pampa will be built at an estimated cost of over $1.4 million. New junior and senior high schools in San Antonio will require an outlay of nearly $1.4 million. A $302,000 addition to the Dumas High School has been approved. The Ganado Independent School District has awarded a $245,000 contract for construction of various school buildings. Construction of junior high school facili­ ties in Ingleside will cost $200,000. The Dallas Independent School District authorized a $678,500 school construction program. Large educational building programs authorized by col­ leges and universities include contracts totalling $1,370,000 for student housing at Southwestern Baptist Theological Seminary in Fort Worth and a $355,000 Lee College build­ing in Baytown. RELIGIOUS Demand for new churches is being stimulated tremend­ously by. the. increasing number of large families and by the relative mcrease in church attendance. This trend is expected to be intensified during the 1960's. Important church construction projects announced in February and the first half of March include the Travis P~rk Metho?ist Church building in San Antonio, which will be rebmlt at an estimated cost of over Sl million and the First Methodist Church in Houston, which has aulhor· ized construction of a $528,875 youth center. Catholic church construction activity in EI Paso is high­lighted by a $350,000 church and rectory for St. Joseph Parish and a $118,000 church, school, and convent for Blessed Sacrament Church. PER CAPITA Per capita building authorized in Texas during Feb­ruary was $18, a $4.63 decline from the $22.63 chalked up in January. .North Richland Hills, near Fort Worth, was the highest with Sl,510 per person. Piney Point Village, near Houston, dropped to a close second in February with $1,150 per person. VALUE OF CON STRUCTION CON TRACTS AWARDED Source: Dodge Statistical Re!!earch Senice January-February Type of Feb Percent construction i 967 1957 1966 change Value (thousands of dollars) TOTAL CONSTRUCTION ...... 113,352 257,786 299,722 -a ALL BUILDINGS ·-------·­---­ 87,711 200,268 239,281 -16 Residential --··----------------·--------------· 53,235 112,791 141,564 -20 Nonresidential ----------------------------­ 34,476 87,477 97,667 -10 PUBLIC WORKS AND UTILITIES ----------------­ 25,641 57,518 60,491 - r; METROPOLITAN vs. NONMETROPOLITAN ALL BUILDINGS ------------· 87,711 200,268 239,231 -16 Total 10 metropolitan areast-.. 66, 782 123,541 H8,020 -17 Remainder of state -------------------­ 30,929 76, 727 91,211 -16 tThe metropolitan areas are Amarillo, Austin, Beaumont-Port Arthur Corpus Christi, Dalla•, EI Paso, Fort Worth, Houston, Lubbock, and Sa~ Antonio. FLOOR AREA OF CONSTRUCTION CON TRACTS AWARDED Source: Dodge Statistical Research Service Percent change Feb 1957 Type of Feb J an from construction 1967 1957 J an 1957 (thousands of sq. ft.) 8,148 8,629 6 Residential ------------------------------------------·--·------­ ALL BUILDINGS ----------------------------· ­ 6,038 6.520 -9 Nonresidential -·------··----------------------·--·--··----­8,110 3,109 •• METROPOLITAN vs. NON­METROPOLITAN ALL BUILDINGS -------------------------------­8,148 8,629 -8 Total 10 metropolitan areast ------------------· 6,267 5,690 -8 Remainder of state --------------------------------------·-­ 2,891 2,939 2 t The metropolitan areas are Amarillo, Austin, Beaumont-Port Arthur Corpus Christi, Dallas, EI Paso, Fort Worth, Houston, L ubbock, and Sa~ Anton iv. • •Change is less than one-half of one percent. The term "business history" is peculiarly American. It connotes the story of the policy, management, and control that go into the production of goods and services chiefly for the making of a private profit .... Business history is not romance or scandal, propagandist expose or hero-worshiping. Ideally, it is an earnest effort to learn and to set down in orderly fashion the facts and ideas that have underlain the organized plan of using capital and employing men in order to serve society's needs ... . In the long run, business men are in effect the servants of society, who take as their reward profits or salaries or both. What they receive depends on their ability to run risks, organize production, and change with changing circumstances. -N. S. B. Gras, Bulletin of the Business Historical Society, October, 1944. BUSINESS HISTORY By JOE B. FRANTZ If in 1925 the student or the man of business had wished to know something about how business had operated in the past, he would have been rather hard put to have found any objective information. In the main, two types of studies existed. One was a puff job, put out to tell the greatness of some businessman; usually' it oversold the man and his company by making them look purer than possible. The other study was an attack on the businessman or institution, as likely as not written from a Marxian viewpoint. Both studies had one quality in common-they were "outside" jobs. That is, except for some interviews, they were written from such sources as newspaper accounts, government investigations, and press agent hand-outs. Usually they lacked analysis. Certainly they lacked bal­ance. And none of them derived much, if any, information from the records of the company itself. A good part of the blame for this situation adheres to the businessmen themselves, who were still malingering in that period when they felt what they did was nobody's business but their own and, consequently', refused to ad­mit qualified scholars to their business records. On the other hand, the scholars failed to see the worth of looking at business from the administrative vantage and were content to dwell either on the purely economic aspects of business or on the sometimes sensational social derelictions of private capitalism (which certainly attracted a wider, more responsive audience). But in the mid-1920's this situation began to change. And how it changed proves once again that what is taking place in the world of ideas, as pursued in the classroom, is not purely theoretical and, therefore, of no interest to the practical businessman. It proves instead that what takes place on the classroom level wday may influence practical procedure tomorrow. This story then goes back to the classroom-to the Har­vard Graduate School of Business Administration, to be precise, where Dean Wallace Donham found himself in possession of $5 million to expand his school. Consequent· ly, he asked his faculty for a re-examination of the whole subject of business education, with the result that a so­called "bible" was produced in which one professor, George Woodbridge, suggested strongly that the history of business should be taught in school. Dean Donham, a man of vision combined with some imagination and courage, had no clear-cut idea as to what business history might become or even what it ought to be; he nevertheless instituted such a course, known simply as Policy 8 because it dealt presumably with business policy and met at 8 o'clock in the morning. The course proved to be an immediate mediocrity'. Far from sacking the course, Donham set out to try again on a larger scale. At the same time, the Straus brothers of R. H. Macy and Company were looking for some means of honoring their late father, Isidor Straus. The result was the establishment of an endowed chair in business history at Harvard. The next difficulty to be surmounted was that there were no business historians to be had. The nearest thing to a historian of business was Dr. N. S. B. Gras, who had been giving a course in economic history at the University of Minnesota since 1918 and who had concentrated more and more on the story of business units and less on the development of economic theory. In 1927 Gras came to Harvard to fill the chair. His course was required. Several things went wrong, and after 1928 the course was no longer required; Gras felt that he could work better with a smaller group whom he could train intensively. He saw, too, that he was handicapped by a lack of factual experiences of American businessmen and companies. Almost at once Gras established a Journal of Economic and Business History and at the same time put his stu· dents to work on a series of monographs in order to pro· vide factual support for a subject which he saw would take on serious proportions. Harvard gave him complete freedom of action and adequate financial support. The most difficult task was to develop an appreciation of the administrative point of view-that is, the business· man's task of accomplishing something under existing public conditions. An economic historian found great difficulty in throwing off his approach to business from the outside, being accustomed to thinking of great forces at work and to reading public rather than private docu­ments. A rather striking beginning in gathering the story of American business came with the establishment of the Harvard Studies in Business History. The first work, a TEXAS BUSINESS REVIEW two-volume history' of John Jacob Astor, Businessman, appeared in 1931. Its research and publication were fi­nanced by the British branch of the Astor family, which was attracted by the suggestion that a sober history of their fortune-founding ancestor might reveal that the Astors had done as much for New York as they had obtained from it. Gradually, other works appeared-some case-study length and an occasional one of book length. By 1939 the Harvard ~eries numbered five. In that year two books, Business and Capitalism by Gras and Casebook in Amer­ican Business History by Gras and Henrietta Larson, ap­peared. In a sense, the subject of business history stems from these two publications. In the nearly two decades since, there has been a growing consciousness of the im­portance of business history to the businessman, to the scholar, and to the academic discipline. So much for the history'. Gradually other schools have added business history to their curricula until today prob­ ably between two score and three score schools offer some sort of business history course. The courses are of all varieties and at all levels. Some are taught in depart­ ments of history, some in economics departments, ana still others as introductory courses in management. Some are taught at the freshman level, some at upper division levels, and some at the graduate seminar level. Every year some college or university announces that it is adding business history to its offerings. The growth has not been spectacular, but it has been steady. In the Southwest, the first course was offered by the author at The University of Texas, beginning with the summer session of 1950. Three types of offerings are made-a three-hour sophomore survey' in American his­ tory for students of business only, in which emphasis is shifted from such usual topics as politics and military exploits to the development of business institutions since the Civil War; a six-hour course in American business enterprise for seniors and graduate students; and, oc­ casionally, a three-hour graduate seminar which is con­ cerned with a specific problem in the history of business. As for the business histories themselves, they are pour­ ing out at an ever faster rate until the trickle of the 1930's has become the small flood of the mid-1950's. Dun and Bradstreet lists more than 1,000 titles in its latest bibli­ ography, most of them written since World War II. The histories divide themselves into three categories. One is the old-time puff job brought up to date tech­ nically. Usually it consists primarily of photographs, with a bit of popular text threaded in. It is almost invariably expensive and attractively packaged. It looks good on a coffee table and will receive plenty of idle thumbing. The second type is the straight narrative history in which the author tends to concentrate either on the per­ sonal success of the top brass or on technical developments and innovations. DuPont by William Dutton is an ex­ ample of this type that is particularly well done. Of most importance is the third type-the full-scale analytical history in which all phases of the business are examined, frequently by a team of business history ex­ perts. These, too, are expensive because they' take time to produce. They are less attractive physically and text­ ually, insofar as breadth of appeal is concerned, but they are more enduring and consequently more valuable to both company and scholar. APRIL 1957 They range down in size from the half-million-dollar­plus multivolume history which is being written for Stand­ard Oil Company (New Jersey) to the $250,000 project under way for the American Petroleum Institute to the modest, though excellent, history of Plymouth Cordage Company by Samuel Eliot Morison. Why do companies authorize the opening of their records to prying scholars? For one thing, it is a form of prestige advertising and considered by some companies as a legi­timate advertising expense; it shows that the company is willing to stand on its record-its whole record. In the second place, such a history provides a truly valu­able executive training tool. As no busine51man has to be told, one of the difficulties of modern personnel training is to get the executive-to-be to see the whole picture instead of a blown-up portrait of his special interest or technique. A proper full-scale history will give the rising young junior a peek into such varied activities as labor relations, ac­counting, marketing, cost of money, and procurement of supplies. Above all, it will give him an insight into de­cision-making at top policy level. Further, the influence of such histories to educate is incalculable. Ordinarily the very size and solidity of the histories will cause the ordinary reader to turn back to his TV quiz program. But other businessmen will read the book, and, more important, a handful of scholars who will write the books of the future will draw on the history for information. Some of their histories will be popular or will be popular­ ized by professional journalists. They themselves will teach their several dozen or several hundred students a year, who in turn will be the busi~ess community of the near future or the school teachers of next year. How fast this spread of information can multiply and ramify is im­ possible to determine, but it is hardly overstating the case to aver that shortly the total might well reach into the hun­ dreds of thousands or even millions. Considered in this guise, a proper business history becomes a tremendous public relations tool. Writing in The Business History Review in September 1955, James Soltow points out still other uses for business histories. Capitalizing experience may well be one pur­ pose. Standard Oil Company (New Jersey) wanted its World War II history written in order that the reasons for its various actions in that conflict might not be lost or con­ fused by time. Sears, Roebuck and Company· saw its his­ tory as a virtual text on retail distribution. J. C. Penney, in Soltow's words, urges its local managers "to read speci­ fied portions" of its history "to understand how the com­ pany has built good will in towns where it operates and why this is necessary." Universal Atlas requires each new supervisory employee and salesman to read the company history and to report what he has learned. Employee relations and customer relations are other uses named by Soltow. Employees get an idea of how their jobs fit into the total picture, not to mention the morale boost that comes from having their company's story deemed worthy of being told between hard covers. Customers learn why a company has certain policies. Ideas for advertising copy can also be gleaned from such histories. On one principle business historians are unanimous: the author or authors must be given a free hand to tell the story as they see it. In the long run, relations will be more pleasant if author and company make a formal contract that the author will relate the facts-whether good or bad-holding back only in those instances in which trade secrets might be revealed or clients unnecessarily injured. In the long run, too, the public relations position of the company will be stronger if the reading public can be assured that this is the whole story, as whole as any story ever is. . The question is often raised whether a scholar can retam his objectivity when he is being subsidized by the company whose history he is writing. The answer is twofold. In the first place, if he is a conscientious scholar and if he is given the green light to conduct independent research, he will ask his own questions and come up with his own con­clusions, regardless of who is paying the bill. Scholars are sometimes accused of biting the hand that feeds them. If they possess the integrity they are supposed to, they will do just that. Every institution and person needs to be nip­ped at now and then. Underwriting the research and publication is also a practical necessity. Business records, even of comparative­ly small companies, tend to be voluminous, almost over­whelming, in these days of justifying tax returns, keeping retirement records, and so on. If a scholar is going to com­plete a company history in his lifetime, he needs to pur­chase some free time and probably some research and secretarial help. Academic salaries being what they are, he cannot afford to forego his normal income even for a se­mester. On the whole, Texas and the Southwest have lagged be­ hind the remainder of the nation in having their business histories told. Undoubtedly one reason for this lag has been the comparative newness of Texas business houses. Many of them are still in the first generation of ownership and, consequently, have had neither time nor urge to be reflect­ ive. Texas firms, too, tend to be glamor-struck by their spectacular growth and, therefore, want to emphasize only the superficial, glamorous aspects of that growth. If busi­ ness history follows the pattern in Texas that has been set in other areas of the United States, it will probably con­ tinue to progress slowly until two or three major companies have full-fledged histories written. Then the momentum will gather, until one distant day more companies will be seeking histories than there will be scholars to write them. Actually, some progress has been made in Texas. J. Evetts Haley has unwittingly written two good business histories wrapped around ranch themes in his XIT Ranch of Texas and, more particularly, in his George W. Little­field, Texan, the story of a frontier cattleman who became a power in Central Texas banking circles. Haley has also written one of the best accounts anywhere of a small-town general store in the pocket-sized Charles Schreiner, Gen­eral Merchandise. A number of good industry histories exist. The late Carl Coke Rister's Oil! Titan of the Southwest foregoes the al­lure of wildcatters and rampaging gushers to tell a fact­packed story of a major Texas industry. Jack Cashin of The University of Texas has written a unique account of History of Savings and Loan in Texas. At the academic level, the author knows of theses in progress on such topics as the shrimp, marine insurance, and short-line railroad industries in Texas. On a large scale, Humble Oil and Refining Company has had a team of scholars working on its history for nearly a decade. The result will he certain to attract critical atten­tion all over the United States and probably beyond. Nei­man-Marcus of Dallas had Frank X. Tolbert tell its story in Neiman-Marcus, Texas. While his account belongs to the chatty, informal variety and has little utility as a business history, Tolbert, who has a way with prose, nonetheless conveys a feeling for a specialty store that had the imagina­tion and nerve to make an international institution of itself. At the picture-book level is the volume brought out by Pioneer Mills of San Antonio several years ago-an ex­cellent evocation of a century of state, town, and business growth. Perhaps the most notable academic study of a Texas business institution is the account of the business activities of the Matador Ranch, written as a doctoral dissertation by William Pearce of Texas Technological College. It illu­strates a point. Had Pearce concerned himself with the tin· sel of cowboy gun play and "soiled doves," he would have made a book out of his dissertation long before now. But at his own expense he wrote instead a thorough study of how a foreign syndicate operates a sprawling ranch empire 5,000 miles from home. Because it is solid and, therefore, likely to he appreciated only by the critical few, no pub­lisher has yet felt he could afford its publication. Such briefly is the status of business history in Texas as of spring, 1957. In truth, it has not gotten off the ground, hut, without being unduly optimistic, it is stirring. The likelihood is that as Texas firms become larger and more complex, as they mature and grow retrospective, and as they become more aware of the historical activity of firms in other sections of the United States in promoting business history, they will join the parade. The tax struc· ture, which does not discourage expense write-offs, also points toward increasing interest in expending money for such projects. To date, not one good history of the development of American business has been written. The principal reason has been that not enough was known by writers, or by businessmen themselves for that matter, of how modern business has evolved. Steadily now, after a late start, the pieces are being put together-company by company, industry by industry. How much Texas gets its pieces into that jigsaw remains to be seen. TEXAS BUSINESS REVIEW Retail Trade: NONDURABLE GOODS SLACKEN By A. HAMILTON CHUTE February dollar sales in Texas failed by 5% to maintain the brisk pace set in January hut topped last February by a nominal 1%. Nondurable goods showed the greater slackening. Total sales for January-February 1957 bet· tered by 2% the same months of 1956. The index of retail sales (163) nearly equalled that (164) for November through January but was below the average month (168) for 1956. Compared with February 1956, sales increases for most retail lines averaged from 1% to 11 %, including auto· motive stores, gasoline and filling stations, florists, restau· rants, drug stores, liquor stores, and groceries (without meats). Decreases of 5% or 6% were reported by furniture stores, lumber and building material dealers, family and men's and boys' clothing stores, shoe stores, and country general stores; jewelry stores fell off 14%. Volume for 295 Texas department and apparel stores slipped below February 1956 by 3%, although January· February' volume equalled those months of last year. All of 35 cities reporting fell below January volume. However, 15 cities showed increases of as much as 27% over last February, and 20 cities topped the first two months of 1956 by up to 18%. Leaders for February were Odessa (27%), Plainview (23%), Lubbock (20%), Victoria (17%), Vernon (14%), Amarillo (9%), and El Paso (7%). For the two months, best gains were at Lubbock and Plainview (each 18%), Odessa (17% ), Victoria (15%), Cleburne (11%), and Beaumont and Marshall (each 10%). Of 29 cities reporting various lines separately, 12 regis· tered increases over last February, and 18 cities topped January-February 1956. Leaders for February were Plain­view (48%), Greenville (35%), Amarillo (13%), Port Arthur ( 12%), Corpus Christi ( 11 % ) , and Brownsville (10%). The two months produced sales gains for Plain­view (32%), Greenville (26%), Sherman (15%), Corpus Christi (14%), Beaumont (12%), and Brownsville (11%). The February ratio of credit sales to total retail sales in 67 Texas department and apparel stores ( 66.6%) com­pared with 66.9% in January 1957 and 67.2% in Febru­ary 1956. The highest ratios, by cities, were at Dallas (69.4%) and San Antonio (68.2%) and, by type of busi­ness, among dry goods and apparel stores (72%). The February 1957 collection ratios (35.7%) slowed from January ( 43.3%) and from February 1956 (36.5%). Best collections were made among dry goods and apparel stores (54.2%) and, by cities, at Bryan (51.6%) and ESTIMATES OF TOTAL RETAIL SALES (Unadjusted for seasonal variation) Percent change Type of store Feb 1957 Jan-Feb 1957 Feb 1957 from Jan 1957 Feb 1957 from Feb 1956 J an-Feb 1957 from Jan-Feb 1956 Total 767.8 1,575.8 -5 1 2 ----------·---········ + + Durable goods ·····--------· 255.0 -•• + 514.2 2 1 Nondurable goods ........ 512 .8 1,061.6 -7 + 1 + s •• Chanire is less than one-half of one percent. Retail Sales in Texas 19Ao ·" ·42 ·43 ·44 ·45 ·46 ·47 ·4a ·49 ·so ·51 ·52 ·53 ·54 ·55 "56 ·57 Austin ( 49.4%). Improvement over 1956 ratios was noted among men's clothing stores and, by cities, at Bryan, Dal­las, and Fort Worth. Secondary Trade Indicators. Total advertising lin· age in 27 Texas newspapers averaged 6% over January hut 9% under February 1956. Only four newspapers re· ported gains over last February. Among 100 Texas cities, 61 reported larger postal receipts for February 1957 than for February 1956. THE NATIONAL PICTURE Despite one less business day than in 1956, February' re­tail sales--seasonally adjusted-continued at the record rate set in December and January, averaging 7% over February 1956. Chain stores have been topping 1956 vol­ume by 9.7%; mail order houses in January were 8% ahead of last year's record. Sales improved for apparel stores, food and drug stores, automobile dealers, filling stations, and hardware and furniture stores. Reduced sales of building materials, major household electrical appli­ances, and television sets partly reflect the lower activity in residence building. CREDIT RATIOS IN DEPARTMENT AND APP AREL STORES Credit ratios• Collection ratiost Number of reporting Feb Feb Feb Feb Classification stores 1957 1956 1957 1956 ALL STORES ----­----------············­- 67 66.6 67.2 85.7 36 .5 BY CITIES Austin ------------·····-························ 63.4 62.9 49.4 50.i Bryan ----------------------------·-·············· 3 56.6 53.6 51.6 49 .1 Cleburne ·····­---------------····-············· 3 38.9 43.3 38.1 39.9 Dallas --------------------------------------------­ 8 69.4 71.4 38.5 35.8 El Paso --­----------------------­-·---­·--­ 3 60.3 58.7 28.5 33.5 Fort Worth ····-----------·-·----------·------­ 3 66.5 66.8 84.3 33.8 Galveston ------·--------------------·--······--­ 5 63.9 59.8 42.1 43.8 Houston -------------------·--····--············· 4 66.0 66.9 81.7 33.4 San Antonio ------------·····-·············-·· 4 68.2 67.1 41.5 56.6 Waco ·····--------­-------··--·-··········-······· 5 65.1 62.5 42.i ,9.6 BY TYPE OF STORE Department stores (over $1 million) -----------·--· 22 66.8 67.8 34.6 35.0 Department stores (under $1 million) ·····-·-----­ 21 52.5 49.8 ~9. 0 41.0 Dry ~oods and apparel stores .... 6 72.0 72.0 54.2 5,.2 Women's specialty stores .......... 11 67.7 68.0 41.7 50.1 Men's clothing •tores ................ 7 69.2 64.4 44.9 41.0 BY VOLUME OF NET SALES Over $1,500,000 ·····-------·-············· 26 67.1 68.0 35.4 36.2 $500,000 to $1,500,000 ---·····---······ 15 62.3 58.0 43.1 45.7 $250,000 to $500,000 ······-···--·········· 10 50.8 51.6 46 .4 47 .0 Less than $250,000 -·-·······------·--·-··· 16 54 .9 47.9 33.7 34.8 •Credit sales e.a a percent o! net salea. tCollections during the month as a percent o! accounts unpaid on the first of the month. 349· pages--al.most 11,000 Texas firms, classified by city & product-_-349 pages Directory of A USEFUL TEXAS MANUFACTURERS TOOL 1956-1958 • • Wholesale markeis steady. Showings in various lines stimulated demand, with increased ordering of women's apparel, furniture, and housewares. Major electrical ap­pliances and some textiles and food products continued slow. Demand increased slightly for floor coverings, draperies, and linens, as well as for gift lines, glass, and chinaware. Prices largely firm. The Consumer Price Index slowly climbed to a new record high point, with most components contributing to the rise. Wholesale prices weakened in some lines; huge surpluses of farm products are likely to keep farm prices low. Earlier price increases at wholesale are spreading belatedly into retail levels. Inventories reasonable. Most retail inventories in re­lation to sales are reported lower than a year ago. Stocks of new cars were lower by 250,000 on February 1 and by 175,000 on March 1. Incomes and credit huge. Personal incomes reached a new high point in January, up 6% from a year ago. How­ever, overtime pay for some workers has decreased. And in January, consumers took on new indebtedness at the highest rate for any January-$3,150 million. Repayments were even greater-$3,400 million. The rate of increase in new obligations, however, has been slowing. Net increase in instalment credit in 1956 was only $2.5 billion against $7.1 billion during 1955. For instalment purchases and for mortgages on homes, consumers now owe $112 billion more than 10 years ago. The ratio of debt to income is now the highest since 1929, which occasions some official concern. Repayments to instalment debts now absorb 13% of consumers' incomes after taxes. The ratio was nearly 11% early in 1953 and 9.5% early in 1951. Prospects good but mixed. Economic indicators re­ veal a slowing from the rapid acceleration of past months. Consumers' incomes remain high, however, as do the spending intentions of businessmen and government agen­ cies. Business failures have reached their highest point in 17 years. However, new businesses are being set up at 10 times the rate of the failures. The recent poll of customers by the Federal Reserve Bank is largely reassuring. Consumers appear to be in good financial condition and well reassured as to their income prospects. Their purchasing plans for most major articles approximate plans of a year ago. Merchants will continue to face the threefold task of maintaining or increasing volume, of controlling gradually rising expenses, and of financing merchandise replacements at increasing cost. Competition will probably become even more rugged. POSTAL RECEIPTS Dollars Percent chan1re City J an 12 1957 Feb 8 1957 Dec 15 1956 J an 11 1957 Same period last year J an 12 '57 Feb 8 '57 from Dec 15 '56 J an 11 '57 Jan 12 '57 F eb 8 '57 from Same periodlast year Brownfield ______ 7,493 8,576 5,168 -13 + 45 Cameron ________ 2,369 8,678 4,842 -73 -51 Cisco _____________ ___ 3,523 5,774 3,300 -39 + 7 Cleburne ----·---8,525 14,487 7,758 -41 + 10 Coleman 4,179 8,071 4,653 -48 ···-···· -10 Crystal City __ 2,748 3,598 2,890 -24 -5 Cuero --------------3,472 6,685 3,435 -48 + 1 Eagle Pass ____ 4,625 6,854 4,474 -33 + 3 Edna ····----------4,156 5,411 3,347 -23 + 24 Gainesville ------9,765 15,221 10,153 -36 -4 Gatesville ...... 3,304 7,321 4,472 -55 -26 Gilmer ------------4,018 5,485 3,122 -27 + 29 Graham ----------5,822 10,193 5,975 -43 -3 Hillsboro ------4,794 19,947 4,950 -76 -3 Huntsville ______ 5,780 10,073 6,732 -43 -14 Jacksonville __ 7,408 2(),744 12,()76 -64 -39 Kenedy ------------2,771 4,()15 2,665 -31 + 4 Kermit 4,798 7,806 4,616 -39 + 4 ·········· Kerrville ________ 8,227 12,384 7,7()9 -34 + 7 Kingsville ------lC>,427 16,185 9,995 -36 + 4 Kirbyville ------1,838 4,251 5,215 -57 -65 La Grange ------3,293 5,()77 3,371 -35 -12 Levelland ________ 5,275 8,559 5,279 -38 •• Littlefield ------5,159 7,0()6 4,147 -26 + 24 McCamey ___ __ __ 1,941 3,2()1 -39 Marlin ------------4,221 7,717 4,4()9 -45 -4 Mission 6,554 12,338* 6,891 -47 -5 ·····-···-Navasota ____3,170 5,656 3,()74 -44 + 3 Pecos .............. 7,081 12,217 8,113 -42 -13 Pittsburg ________ 2,748 2,727 2,536 + 1 + 8 Raymondville 4,055 6,969 3,967 -42 + 2 Sinton -·--···-·---5,999 6,029 2,809 •• +114 Taft ----------------2,119 4,760 2,064 -55 + 3 Terrell ------------5,053 8,596 5,150 -41 -2 Waxahachie __ 8,048 12,862 -37 Yoakum ----------6,523 8,314 7,270 -22 -10 *Postal receipts are for calendar month. ••Change is Jess than one-half of one percent. TEXAS BUSINESS REVIEW Agriculture: THE BIG QUESTION By JAMES H. KEAHEY And the rain was upon the earth.-Genesis Vil, 12. It would be difficult to write about Texas agriculture at the present time without coming sooner or later to one sub­ject-rain. Since the start of the year, all parts of the state have received good moisture. The precipitation began in late January, when slow, soaking showers-ranging from one­half inch to two inches-fell over the eastern half of the state. February brought more moisture, with rains of over five inches falling in a few places. From Wichita Falls east­ward across North Texas and extending down into East Texas, the precipitation was heavy. The Rolling Plains got long overdue rains in early February, when gully-washers fell in a belt north and east from Midland across the state into Oklahoma. In mid-February, the first general rains since May 1956 fell over the state. This was the first relief of the year for the High Plains, Trans-Pecos, Edwards Plateau, and South Texas regions. Brownsville topped the state with five inches. With the general precipitation continuing through the rest of the month, many farmers had the almost forgotten experience of having to wait for the ground to dry before they could woi:k their fields. Prices Received by farmers in Texas Index • Unadjusted for seasonal variation • 1909-1914·100 ~I 350 350 I v f \ 300 300 ' \,v Jr' ~ ~ 250 ""'­ 250 ) 200 200 ~ lr--'l/ 150 150 J 100 100 .I 50 50 0 0 19AO "Al '"A2 "A3 "AA ·45 "A6 ·47 "AS ·49 50 51 52 53 SA 55 56 57 INDEXES OF PRICES RECEIVED BY FARMERS (11}09-14 =100) Source: .Agricultural Marketin&' Service, U.S. Department of Agriculture Percen t change Index F eb 1957 Jan 1957 Feb 1956 F eb 1957 from J an 1957 Feb 1957 from Feb 1956 ALL FARM PRODUCTS 264 ----·--­ ALL CROPS ··­-------­---··-­·····­ 258 Food &'rains -------­-­·············---­----­-­ 228 Feed 1irrain and ha y ---··············­ 198 Potatoes and sweet potatoes .... 238 Fruit ·····-·······-----------------·-·--··········­ 81 Truck crops --·-·-··········-----­------­·-·· 418 Cotton -----------------------····-······----------252 Oil-bearing crops ------------------------297 LIVESTOCK AND POULTRY PRODUCTS ------------------------272 Meat animal9 ---·--·-······-·------····-·---­ 290 Dairy products ---------------------------­ 260 Poultry and eggs -----------------------­ 202 823Wool ---·--·--····---····-·----···-·----····----···· 259 249 + 2 + 6 251 238 + 8 + 11 225 221 + 1 + 8 201 162. + 22. 228 148 + 4 + 61 64 87 + 27 -7 367 286 + 14 + 46 248 245 + 2 + 3 301 2.32 + 28 270 271 + 1 •• 2.78 288 + 4 + 1 264 254 2 + 2 222 2.46 9 -18 817 2.61 + 2 + 24 **Chan&"e ia less than one-half of one percent. February rainfall in Victoria was the heaviest since 1949. The Big Bend country received more moisture than in any February during the last seven years. The rain fell slowly with a minimum runoff, and, at month's end, Texas had received the best early season moisture since the start of the drouth. With the coming of March, crop and pasture prospects continued to improve over almost all of the state. Showers, ranging from sprinkles to downpours, and spring-like temperatures turned the fields to green. Only the far west failed to receive some appreciable moisture. Lighter rains continued to fall as March progressed, but strong winds nullified their benefits to some extent. A few dust storms were reported, and northers did some damage to budding fruit trees in North Texas. But as precipitation was sus· tained on through the month, the Texas weather picture continued to look promising. With emerald fields and with rains soaking the state, it was difficult for Texans to suppress a feeling of jubilation. As one enthusiastic newspaper writer put it, "The rumbling that is echoing across Texas' wide plains, high hills, and deep canyons isn't all thunder from rain storms, (it) is part of the Great Migration--of farmers feverishly turning over their lands and of cattle trampling on the first green grass in many years." Perhaps the feeling was better ex­pressed by the newspaper pictures of farmers walking bare­foot in their fields just to feel the mud between their toes. The rains had come; the parched soil had drunk deeply. But even as the event was being celebrated, Texans were asking themselves the big question: Were the seven lean years really coming to an end? To evaluate properly the significance of the recent rains, it is necessary to view them through the dusty perspective FARM CASH IN COME January-February Percent Commodity 1957 1956 chan11"e TOTAL -----------------·---·---­ Cotton --------------------------------­Cottonseed Wheat Oats -·------------------------------------­Corn -----------------------------·--------­ Grain sorghum Flaxseed ------------------------------­Peanuts --·------------·--·--------------­Rice ---------------------- --------------­Cattle -----------------·---------------- Calves ---------------·----------------­Hogs -----------------------------------· Sheep and lambs --------------­Wool ········---------------------·-·-··-­Mohair ·····------------------------- --· Poultry ----·-··--···--·-----------------­Eggs --------------------------------··--· Mille and milk products ---­Fruit and vegetables -------· Thousands of dollars 213,674 263,242 -19 82,200 106,639 -23 0 0 •• 5,923 3,416 + 73 618 680 -9 l,014 1,503 -83 11,214 13,552 -17 0 0 •• 1,066 3,704 -71 0 0 •• 35,151 43,147 -19 11,780 14,026 -16 12,316 14,752 -17 2,989 4,174 -28 380 416 -9 1,012 414 +144 8,000 8,392 -5 7,852 11,508 -82 20,273 22,616 -10 11,886 14,303 -17 Farm cash Income as computed by the Bureau understates actual farm cash income by 6% to lOo/o. This situation results from the fact that means of securing complete local marketings, esPecia.lly by truck, have not yet been fully developed. In addition, means have not yet been devel­oped for computinll" cash income from all agricultural specialities of local importance in scattered areas. This situation does not impair the accuracy of the index shown on page 24. **Chanll"e is Jess than one-half of one percent. of the worst drouth in the state's history. Rainfall has been below normal throughout the Lone Star State since 1950. Even in usually humid deep East Texas, lakes and rivers were low, vegetation withered and brown. The effects of year after year of inadequate moisture tolled heavily on the state's farmers and ranchers. Dryland (nonirrigated) crop production decreased steadily; irrigated acreage shot up. Pastures and ranges grew barren; cattlemen, with their herds on feed, stretched credit to the limit. The cumulative result was that last year 222 of the state's 254 counties were classified as "drouth disaster zones" for federal aid, and farm income sagged to the lowest point since 1946.* Seven years of drouth had left: • Range and pasture conditions in most of the state in the worst shape in history. • Dryland crop yields at all·time lows. • Reservoirs severely depleted; river beds cracked and dry. • Ground water (underground water) levels steadily dropping.** How big a boost toward recovery had the spring rains given the ravaged land? Here's the answer: • Range and pasture conditions over the state were greatly improved. In the eastern half of Texas, live­stock gained weight rapidly on the lush green clover, rescue grass, and small grains that were growing • See Te:ui1 Busine8• Review, July (Texas' Dry Panhandle) and Novem­ber (Farming: High or Dry) 1956, and January (Wheat Flour vs. Pan• handle Dust) and February (The Worst Year) 1957. •• Best example: the High Plains, where lrrlgators depend entirely on ground water (chlefty from the Ogallala formation) . In the period 1950­ 1954, the number of wells increased from 14,000 to 27,500, and irrigated acreage increased from 1,860,000 acres to S,500,000 acres. Ground water withdrawals· rose from 1.6 million acre feet to 5.2 millton acre feet. Jn the eleiven counties where more than 80% of the irrigated acreage is located, the level 0£ the ground-water table dropped an average of 18 feet. faster than the stock could graze them down. In the west, short grass and weeds were up high enough for sheep; cow grass would be coming along soon. • Dryland wheat, com, grain sorghum, and vegetables had received germinating moisture. High Plains wheat was late but still promising. In the Low Roll­ing Plains and eastward across North Texas, wheat prospects were very favorable. South Texas corn and sorghum planting was completed, but Central Texas farmers had been delayed by wet fields. Spring-crop vegetables were being planted in South Texas, the Lower Rio Grande Valley, and East Texas. The time for cotton planting, except in the Valley, had not come for the rest of the state. • Storage in major reservoirs increased 5% in Febru­ary, but was still at only 46% of potential useable capacity. Possum Kingdom reservoir on the upper Brazos River showed the greatest improvement (up 200,000 acre feet to 76% of capacity). However, in the Red River basin, reservoirs stood at only 33% of capacity (as compared with 59% in February 1956). In the Trinity River basin, reservoirs supply­ing water to Dallas and Fort Worth were at only 22% of capacity (as compared with 28% last Feb­ruary). Lake Houston, source of Houston's water, stood at 58% (as compared with 100% last Febru­ary). Brazos River basin lakes were 71 % full (as compared with 84%), and Colorado River basin reservoirs were at 75% of capacity (as compared with 85%). The lake behind Falcon Dam, which supplies most of the water for the Valley's 750,000 acres of irrigated land, stood at only 13% of capac­ity. • Ground-water levels were not up appreciably. Levels in selected observation wells of the State Board of FARM CASH INCOME BY CROP REPORTING DISTRICT, 1955, AND BY CROP REPORTING DISTRICT AND COMMODITY, 1956 Commodity 1-N 1-S 2 8 4 5 6 7 8 9 10 10-A Total Value (thousands of dollars) 1956 Total............................... 247,708 278,224 118,147 93,304 206,655 158,741 84,985 83,780 181,230 122,344 73,843 124,942 1,773,903• 1955 Total................................ 255,915 272,976 163,028 92,888 231,271 127,010 77,722 89,096 233,167 144,071 81,514 127,010 l,895,668t Percent change ··-·--··---·--·--3 + 2 -28 •• -11 + 25 + 9 -6 -22 -15 -9 -2 -6 TOTAL CROPS ------155,589 259,422 67,964 15,046 93,140 47,236 55,277 5,340 71,994 83,059 28,139 115,336 997,542 Cotton.·-··--·--------·----­ 78,768 201,955 45,0ll 592 59,817 23,690 47,379 592 35,534 25,467 5,922 67,516 592,243 Cottonseed_·-·-·-··----·-----­ ll,616 29,783 6,638 87 8,821 3,494 6,987 87 5,240 3,756 873 9,957 87,339 Wheat.----·-·-·---·---··­ 17,405 750 12,283 2,873 7,995 333 41,639 Oats·-·--··­----------­Corn.______________ 125 509 339 748 561 170 4,053 6,277 436 4,4ll 125 62 3,224 62 1,697 170 62 170 6,234 16,967 Grain sorghum..·----··---­ 45,345 26,049 2,894 8,859 ll,577 2,894 1,930 1,930 96,478 Flaxseed...·­------­·----­ 7 330 19 39 1 396 Peanuts.·-·-····-··--­·-­-·-·-­ 117 3,990 1,525 2,346 469 1,760 352 1,173 11,732 Rice·--·---------------·--··­Fruit and vegetables._______ 1,821 546 273 2,914 4,645 1,657 11,202 9ll 3,734 6,253 8,014 45,533 3,279 18,032 35,700 53,443 91,071 TOTAL LIVESTOCK AND POULTRY PRODUCTS...... 92,ll9 18,802 50,183 78,258 113,515 lll,505 29,708 78,440 109,236 39,285 45,704 9,606 776,361 Cattle·--····-··---··-----··--·­ 70,534 ·8,316 24,949 37,269 32,033 22,176 13,552 21,252 31,417 14,784 27,105 4,620 308,007 Calves..·--------·--­------· 9,971 2,540 10,442 9,783 13,264 10,818 2,258 7,902 13,075 5,832 7,243 941 94,069 Hogs....·-···---··-·····---·······--·-··· 4,501 2,714 3,177 5,692 13,503 11,253 1,258 5,361 13,371 2,449 2,:i83 530 66,192 Sheep and lamb•--··--·-·····­ 762 586 2,140 1,876 1,876 88 4,133 16,649 762 58 381 29,311 W ooL---------··---·-··-----·-· 140 331 1,325 872 l,Oll 2,llO 10,969 506 174 17,438 Mohair·----·------------···-··· Poultry__________ ______ ___ 841 14 273 319 751 2,026 1,775 1,193 10,443 42 35,767 610 68 8,603 1,297 888 15,085 l,9ll 153 410 28 137 18,876 68,258 Eggs·-·-···-·---·----·--­Milk and milk products_.______ 2,137 8,733 2,410 1,618 2,849 4,231 4,656 14,309 ll,449 28,743 6,848 24,513 493 5,226 3,670 2,737 14,845 19,287 3,177 ll,074 1,260 6,595 986 2,364 54,780 124,430 •Does not include $54,938 received in payment to farmers by the U. S. Government. t Does not include $20,464,000 received in payment to farmers by the U. S. Government. ••Change is less than one-half of one percent. TEXAS BUSINESS REVIEW Water Engineers registered new February lows in the EI Paso, Winter Garden, Atascosa, San Antonio, Austin, and Pasadena areas (however, the last two wells were rising slowly) . For the sixth consecutive month, the Uvalde.area observation well dropped to a new all-time low. Stream flow remained deficient for all but a few regions of the state. The general picture seemed to be that while the rains had im­ proved surface moisture greatly, much more precipi­ tation would be needed to improve depleted sub­ surface moisture.* So while grins and muddy toes were in order, most ob­servers were hesitant to declare that the state was out of the woods yet. State Agriculture Commissioner John C. White stressed, "It will take years to replenish our lost under­ground water reserves, and without these resources we are still in a state of drouth." Although there was germinating moisture, nature's ca­prices were only too well known to Texans to allow any feeling of security. The patter on the roof might be the song of the Lorelei. Witness last season in North Texas: in September 1955, rains teased farmers into planting a heavy acreage in small grains. But with scant rainfall in the next two months and none in December, the grains failed to make. Good moisture in January and February induced large acreages of corn, but March and April were bone dry. The corn sprouted, grew awhile, then burned up. Late April and early May rains could not save the corn but caused cotton farmers to take heart. Like the corn, however, the cotton sprouted only to die. After the May showers, over five and one-half months passed before one-half inch of rain fell. And so it went during 1956--hope and heartbreak. While it is difficult for a Texan to suppress his natural optimism, those who have been teased before are not rush­ing headlong into farming and ranching operations. With their herds no longer on feed, cattlemen have stopped their rush to the market, but most a:r:e not restock­ing yet. An attitude of watchful waiting prevails. Farmers say, "It was a fine rain, but not enough to make a crop on." They too are watching the skies for more assurance before they start making predictions. However, some farmers are taking the gamble. With· drawals from the federal soil bank program show this clearly. Deadline for the withdrawals on cotton acreage was March I-necessitating an important decision for farmers who had received the most encouraging rains since the start of the drouth but still not enough to insure success. Weighing the odds, many Valley farmers took the chance. At one time 53% of Willacy County's cotton allotment was committed, but by the deadline only some 20% of the allotment was left in the soil bank-this in spite of the fact that the Falcon Dam reservoir was too low to see the crop through. Speaking concerning the Valley but summing up the situation for the entire state, Hidalgo County Agent Ken Jackson commented, "The rain may have been to our dis­advantage because it spurred the farmers on. But all we need is a little break in the weather and enough water behind the dam for two irrigations." •Ao for the falling water table In the Wgh Piaf...,, It lo unlikely that the Ogallala formadon will ever he recharged. That ground water b la a oenae eapltal. Pamplng It lo Uke pumping oil or stripping fore1i-the depletion euanot eondaue lade&nitely. Industrial Production: MISSILES BOOM IN TEXAS By STANLEY A. ARBINGAST Over S2.6 billion of President Eisenhower's recently submitted 1958 fiscal budget is earmarked for expenditure in guided missile production and development. This an­nouncement was an expansion omen for a little known but an increasingly important Texas industry-the design and manufacture of guided missiles. Significantly, at least one of Texas' major aircraft manufacturers anticipates that work on missiles may account for half of the company's output within a decade. Guided missiles remain a mystery to most people. Briefly, they can be defined as vehicles which fly over the sur­face of the globe, unguided by human pilots, but whose paths can be changed in response to impulses received from mechanisms contained within. They vary' in size, power, shape, and speed as well as in the purposes for which they are used. Texas' guided missile industry has not been widely pub­licized because of security reasons, but at least one manu­facturer, Chance Vought Aircraft, Incorporated, of Dallas, has been a pioneer in the field and has engaged actively in such projects since 1947. Also, one of the nation's major test facilities for missiles has been operated for the Navy (and a group of associated universities) since 1945 by the Convair Division of General Dynamics Corporation at Daingerfield in Northeast Texas. The Daingerfield laboratory, where several hundred work­ers are now employed, is perhaps the least known of the state's military installations because the details of its be­ginning during the latter part of World War II were cloaked in secrecy. As might be expected, the major portion of this type of work is carried on in the Dallas-Fort Worth area of North Texas, but at least one Houston firm-Anderson, Greenwood and Company-has been active in design and test of ground-to-air, high altitude projectiles, and small guided missiles for several years. Much of the company's work is focused on the study of the reaction of various shapes to the flow and pressure of air at supersonic speeds. Testing facilities were recently expanded-an indication that the firm has built a reputation for the soundness and accuracy of its research. Chance Vought is foremost among the Texas missile manufacturers and has been working on and producing Regulus missiles for the Navy for over ten years. Although ELECTRIC POWER CONSUMPTION Percent change Thousands of kilowatt hours Feb 1957 Feb 1957 Feb Jan Feb from from Use 1957* 1957• 1956t Jan 1957 Feb 1956 TOTAL .... 2,967,247 2,962,362 2,809,233 •• + 6 Commercial ______ 324,292 314,450 324,964 + 3 •• Industrial ........ 2,039,359 2,025,183 1,932,355 1 6 + + Residential --·-· 529,068 545,825 451,592 3 + 17 Other ···-···--------26 74,528 76,904 100,322 3 •Preliminary-based on reports of 10 electric power companies reported to the Bureau of Business Research and leveled to Federal Power Com­mission preliminary data. ••Change is Jess than one-half of one percent. tRevised to preliminary Federal Power Commission data. Industrial Electric Power Use in Texas Index. Adjusted for seasonal variation. 1947-1949·100 ,_i­0 .)_,,.,,1.-v-' \,1-r ,..­ '--'"' / 'Ir J ff ~ ,,., ., ....... ,./;,/ 1 0 400 350350 300 300 250 250 200200 50150 00 100 50 50 1940 '41 '42 '43 '44 '45 '46 '47 '48 '49 '50 '51 '52 '53 '54 '55 '56 '57 at work since 1947 on the Regulus I, the Navy's first op­erational attack missile, the company did not make any public announcement of the project until six years later. Weighing about seven tons, the surface-to-surface Regulus can be launched from underwater craft, from surface ships, or from bases on land. Importantly, launching equip­ment can be installed quickly on many types of craft at low cost and with only slight modifications to the vessel itself. Three models are produced-a nonrecoverable version, a recoverable test and training version, and a target drone version. The nonrecoverable version is said to be capable of delivering a warhead over a range of 500 miles, guided only by a built-in electronic brain. The recoverable type is equipped with a retractable land­ing gear and can fly pilotless missions. When it lands in­tact, it can be flown again; as many as sixteen flights have been flown by one missile, but the average is six. Chance Vought claims the Regulus I has maintained a higher record of reliability and performance than any comparable missile. With Regulus I a proved success, the company is now at work on Regulus II (also for the Navy), a new super­sonic missile which was flight-tested for the first time at Edwards Air Force Base in California on May 29, 1956. Of particular credit to the manufacturer was the fact that the flight test program of the weapon was three months ahead of schedule at the close of 1956. One Regulus II has already made at least six successful test flights; each time it exceeded anticipated speed, performance, and re­liability. Because of the weapon's power and versatility, it is especially suited for naval type warfare. Like the Regulus I, it is also made in a recoverable version-a technical achievement which saves the nation's taxpayers sizeable amounts of money. During the develop­ment days of Regulus I, research scientists agreed that it was possible to construct recoverable versions. The under­lying philosophy of those who worked on the program was that if a missile could be made to fly at least three times before it was lost, it would pay for its cost because of the scientific and training data it would provide. An estimated saving of over $70 million to the government resulted from this decision. Speaking of the Regulus II at the Navy League's "Mis­sile Power" luncheon on March 1 in Washington, Rear Admiral John E. Clark said, "The potential power of this weapon is incomprehensible." He further reported that the Regulus II had proved itself at over 50,000 feet and that it has flown more than fifty times the speed of sound. Flights so far have averaged nearly four per missile. Gasoline Consumption In Texas Index • Ad justed for seasonal variation • 1947-1949°100 250 200 150 100 so WELL COMPLETIONS Source: Th• Oil and Gaa J 011.rna.l February 1957* January-February R~ion Oil Gas Dry Total 1957 1956 TEXAS 1,092 89 598 1,779 3,857 3,651 Southwest ---··-··-­-·-­-­---­ 106 17 92 Gulf Coast ---··············· 84 36 94 East ··················---------··· 51 13 43 North Central ·-·····­··-· 359 2 302 West .............................. 397 4 57 Panhandle .................... 95 17 10 *For four weeks endinll' March 2, 1957. 215 456 527 214 468 467 107 227 219 663 1,432 1,245 458 1,004 989 122 270 204 PRODUCTION OF HYDROCARBON LIQUIDS FROM GASOLINE AND RECYCLING PLANTS (millions of barrels) Source: Oil and Gas Division, Railroad Commission of Texas Percent chanll'e Product July 1956 Aug 1956 Sept 1956 Oct 1956 Nov 1956 Dec 1956 January-December 1956 1955 1956 from 1955 TOTAL PRODUCTION......................... 14,156 14,509 14,273 14,618 14,108 15,012 171,169 160,202 + 7 Condensate-crude ---·-----------­---·------------------------· 861 834 897 941 1,054 1,081 11,045 9,933 + 11 Gasoline............................................................... 7,557 7,661 7,539 7,645 7,218 7,511 87,880 82,884 + 6 Butane-propane ................................................. 5,412 5,657 5,562 5,739 5,549 6,070 67,885 63,624 + 7 Other products...... ............................................ 326 357 275 293 287 350 4,359 3,761 + 16 TOTAL GAS PROCESSED*................. 426,808 433,175 423,328 439,722 433,755 467,700 5,149,152 4,808,806 + 7 Yield per Mcf in gallons................... 1.39 1.41 1.42 1.40 1.34 1.35 1.41 1.40 + 1 *Millions of cubic feet. TEXAS BUSINESS REVIEW Chance Vought a1so has pioneered in research on a but the total is substantial and is certain to increase greatly number of projects closely re1ated to missile production, within the next decade. Texas manufacturers have proved including work on mathematical analysis techniques, their competenae to produce for this vital industry. weapon systems, electronics, guidance and control mech­anisms, and warhead adaptation kits. · One other large-sca]e manufacturer of aircraft in the state is shifting into missile design and production. Execu­ LABOR: tives of Temco Aircraft Corporation of Dallas recent1y an­ ESTIMATES OF NONAGRICULTUR AL EMPLOYMENT nounced that the company planned a rapid expansion in Source: Texas Employment Commission In cooperation with the the electronics and guided missile field. The firm's Garland Bureau of Labor Statistics, U. S. Department of Labor p1ant, now primarily engaged in subcontracting work on Percent chan11:e air frames, will soon shift emphasis and concentrate on Employment (thous) the manufacture of missiles and target drones. Feb 1957 Feb 1957 F eb* Janr Feb from from Temco has two Navy contracts-one for the XKDT-1, a Industr y 1957 1957 1956 J an 1957 Feb 1956 rocket-powered missile target drone, and the other for an TOT AL NONAGRI- operational missile about which there is very' litt1e un­CULTURAL .................. 2,436.8 2,431.3 2,344.7 •• + 4 classified information. (The latter contract is reported to MANUFACTURING ...... 483.9 480.6 463.4 + 1 be for $60 million.) During 1956, the company a1so con­ + " Durable goods -------------·-··········· 239.8 237.4 221.9 + 1 + 8 tributed to research on missile guidance programs through Ordnance ---··························· 1.6 1.6 2.3 •• -30 modification of B-57 bombers for eventual use as flying Lum ber and wood pr oducts 21.5 21.8 23.1 7 test beds for the Boeing Bomarc missile guidance system. F u rniture and fixtures ...... 10.2 10.l 11.2 + 1 Stone, clay, and glass.......... 16.7 17.2 17.8 3 6 Production at Menasco Manufacturing Company's new Primary metal .................... 26.7 26.9 27.2 1 2 $5-million plant at Euless in Tarrant County is geared in 22.5 9 Fabricated metal p r oducts 23 .1 21.1 + 3 + part to the manufacture of missile components. First ship­Machinery (except ments were made from the factory last summer. With pres­electrical) ···---·-················ 45.6 45.2 42.1 + 1 + 8 ent facilities, Menasco expects to employ about 500 persons Electrical equipment .......... 8.7 8.6 6.8 + 1 + 28 Transportation equipment 76.8 74.6 60.4 + 3 + 27 when full operations are underway. However, the p1ant is Other durable goods .......... 8.9 8.9 9.9 •• -1() designed in such a way that manufacturing space can be Nondurable 11:oods ·················· 244.l 243.2 241.5 •• + 1 tripled. F ood ....................... 65.3 65.7 64.9 1 + 1 Radioplane Company, a subsidiary of California's T extile mill products ........ 8.3 8.4 8.5 -1 2 Apparel ................................ 30.4 29.7 32.4 2 6 Northrop Aircraft, has purchased a large tract of land at + Paper and allied products.. 8.4 8.4 8.1 •• + 4 El Paso for future expansion of its missile production Printing and publish in11: .. 28.1 28.0 27.8 •• + 1 program. The firm is already operating target drone re­ Chemical and allied pair facilities in a newly constructed plant. A primary products -·-··--····················· 48.0 47.7 45.6 + 1 + 5 Petroleum products ............ 48.2 47.8 47.1 + 1 + 2 reason for Radioplane's choice of El Paso as a plant site Leather and leather was the proximity' of the city to military installations which products 3.7 3.8 4.0 7 train men to handle missiles and drones. Other nondurable 11:oods .... 3.7 3.7 3.1 •• + 19 Closely associated with the nation's missile development NONMANU­ ---························· FACTURING .......... 1,952.9 1,950.7 1,881.3 •• + program is the production of rocket propellants. Two large " Mining 131.3 131.4 128.0 s Texas plants, both engaged in ordnance production during ·······························--····· •• + Petroleum and natural 11:as 123.4 123.4 120.4 •• + 2 World War II, have been converted for this purpose. One Metal, coal, and other plant is at McGregor, near Waco, and the other is at Kar­mininK" -----·--------·····-··········· 7.9 8.0 7.6 -1 + 4 nack, north of Marshall in Harrison County. The plant at Contra.ct construction ·-----···· 163.7 162.5 151.7 + 1 + 8 McGregor is known as Air Force Plant No. 66 and is op· Transportation and utilities.. 228.7 228.3 226.6 •• + 1 54.1 1 erated for the federal government by Phillips Petroleum Interstate railroads ............ 54.5 57.2 + 5 Other transportation ........ 99.5 99.9 95.4 •• + Company. Phillips has been a pioneer in developing solid Telephone and tele11:raph .. 35.3 35.2 35.3 •• ••" rocket fuels ; the fuels which the company makes at Public utilities -·---------········· 39.4 39.1 38.7 + 1 + 2 McGregor are composed primarily of petrochemica1s pro­ 369.4 Government ----·----····················· S72.4 355.4, + 1 + duced in Texas. Trade .......................................... 654.5 658.4 630.0 -1 + • The Karnack prope1lant p1ant is operated by the Thio­W holesale t r ade ·················· 171.2 171.2 165.8 •• + s Retail trade ........... 483.3 487.2 464.2 -1 + kol Corporation; the federal government recently an­ General merchandise ...... 75.2 77.7 73.8 -s + "2 nounced a $5-million expansion program for facilities Food and liquor stor~ .... 93.1 93.1 87.3 •• 7 there. Of further interest is the recent press release. telling Automotive stores ·········· 53.6 53.6 52.4 •• + + 2 Appa rel stores .................. 28.8 30.0 27 .7 " + 4 of a $38-million plant which will be constructed to produce Finance, insurance, and high-energy jet and missile fuels at Muskogee, in neighbor­ 112.9 111.8 107.1 1 real estate ···--·-····-··········· + + 5 ing Oklahoma. Bank and trust companies 28.2 27.8 27.0 + 1 + 4 Electronics manufacturers in the Southwest have a good Insurance ···--·················-·-····· 48.8 48.5 45.8 + 1 + 7 Real estate and finance...... 35.9 35.5 34.3 + 1 + 5 opportunity to profit from emphasis on missile production Service and miscellaneous .. 289.4 288 .9 282.5 •• + 2 both at national and local levels. For example, a firm such Hotels and lodgin11: places 28.3 27.8 28.4 2 •• + as Texas Instruments, Incorporated, (which manufactures Laundries and cleaners .... 30.5 30.7 30.3 -1 + 1 .... 230.6 230.4 223 .8 3 transistors at Da1las) expects to market many of its Other business services •• + products to companies engaged in defense work. *Preliminary. It would be difficult to pinpoint the exact number of • •Chan ge is less than one-half of one percent. Texans who are directly engaged in production of missiles, 'Revised. Finance: 1956 AIRCRAFT SALES DECLINE By FRANCIS B. MAY Chance Vought Aircraft, Incorporated, reported earn· ings of $3.81 a share for the year ended ~ecember31.' 1956. This is a decline from the $4.41earnedm1955. Net mcome of $4.l million was bolstered by $1.2 million by a cha~ge in accounting procedures affecting the metho? ?f allocatmg certain costs. Total 1956 assets of $67.3 m1lhon were up substantially over the $52.3 million on the balance sheet at the end of 1955. Sales declined to $118.2 million in 1956 from the $147.1 million of the preceding year. This decline. reflected the transition in production from the Cutlass airplane to the Crusader. The order backlog stood at $508 million on December 31-more than double the $214 million at the end of 1955. This increase was due to the accelerated Navy use of the F8U-l Crusader (its fastest fighter), the Regulus I guided missile, and the Regulus II (a new long-range missile). The large volume of outstanding orders assures output of aircraft and missiles into 1959. Bell Helicopter Corporation, a subsidiary of Bell Air­craft Corporation, expects a decline in over-all 1957 sales. Earnings are not expected to drop proportionately because a large portion of the company's $5.5-million investment was written off under accelerated depreciation charges. This reduces depreciation expense for the near future and eliminates a drag on net earnings. In the future, the com· pany expects to maintain or to exceed the 30% annual growth pattern set in recent years. An upsurge in over-all sales is anticipated, particularly in 1958 and 1959. Good results are expected from the new H-40 military helicopter, REVENUE RECEIPTS OF THE STATE COMPTROLLER Source: State Comptroller of Publlo Aaeounta September I-February 2S Percent Account 1957 1956 chanire TOTAL ------------------------------------------$412,289,299 $428, 7 48,084 8 Ad valorem, inheritance, and poll truces ----------------------------------28,736,295 80,978,874 7 Natural and casingbead gas production taxes ----------------------·-··-­19,442,353 19,906,947 2 Crude oil production taxes ·-·····-·····-·· 71,393,278 67,034,656 + 7 Other gross receipts and production taxes ·······················-······ 11,454,259 10,352,381 + 11 Insurance companies and other occupation taxes ·--·-------------------------­664,862 1,870,383 -64 Motor fuel taxes (net) ····-···············-­81,561,044 76,864,305 + .7 Cigarette tax and licenses ------·--·--·--­22,115,588 21,402,913 + 8 Alcoholic beverage taxes and licenses ········-·------------------------------····· 16,577,715 14,538,800 + 14 Automobile and other sales taxes ··-­10,313,645 11,524,469 -11 All licenses and fees ---·---·-··--·--······-··· 14,540,895 13,855,862 + 9 Franchise ta xes ----·---··················---------· l,505,69S 1,474,367 + 2 Mineral leases, la nd •ales, rentals, and bonuses ---·-·-..·-----··------­11,618,483 24,027,003 -62 Oil and gas royalties -···-·············-·--·--­14,216,934 13,190,378 + s Interest earned ------·-··--········--·-·-------··-­11,132,314 9,907,02S + 12 Unclassified receipts ···---·--·--·-···-····-··· 11,122,140 7,4S7,013 + 49 Other miscellaneous revenue ··········-­7,443,90S 5,162,69!> + 44 Federal aid for highways ············---·-­10,446,023 24,331,116 -67 Federal aid for public welfare --··--·­68,014,907 60,l4S,086 -4 Ot her federal aid ·-··---··-··--·-----·--·-·---·· 9,746,305 10,609,353 -8 Donations and grants ------·----·-·····---·-· 244,653 102,017 +ao the first rotary-wing machine designed specifically for a turbine engine. Houston Ou Field Material,, Incorporated, reported earnings of $3.59 a share for 1956. This is a decided im· provement over the 82.23 earned in 1955. Gross income of 837.5 million exceeded the $29.9 million received in 1955. This improvement in income reflected the expansion to 13 new locations throughout the company's trade territory. Still further improvement in sales in 1957 is expected as a result of the expansion. Temco Aircraft Corporation's sales reached about $90 million in 1956. A rise to more than $100 million is ex· peeled for the current year. Higher operating costs and increased charge-offs for research and development are preventing net profits from keeping pace with sales growth. However, long-term prospects are considered good. Sales of 8250 million by 1961 should be accompanied by im· proved pre-share earnings as research and development expenses begin to pay off. Currently, the company is placing increased emphasis on missile research, while continuing work on subcontracts for components of various aircraft. The company recently completed its financing for the near future when it issued $5 million of convertible debentures. Sales and earnings of the Frito Company reached record proportions in 1956. Net income of 81.79 a share was 30 cents higher than the 81.49 earned in 1955. Sales in 1956 amounted to $28.3 million, a 87.8-million gain over 1955. This improvement in the results of operations was due in part to activities of three licensee companies acquired dur· ing the year. They are Frito New York, Incorporated, and its subsidiaries, Frito Company of Cleveland and Frilo Company of Southern Ohio. A 51 % interest in the Texas Tavern Canning Company of Seguin also was acquired in 1956. Operations of the latter are not reflected in the an· nual statement of Frito Company. The company is continu· ing its policy of plowing about two-thirds of its net profits back into operations, thereby minimizing its need for outside financing. Lone Star Brewing Company earned $3.26 a share during 1956, an increase over the $2.99 per_ share earned in 1955. A quarterly dividend of 50 cents a share was paid April I. This is a 10-cent increase over the previous dividend rate. FEDERAL INTERNAL REVENUE COLLECTIONS Souree: Internal Revenue Service. U.S. Treaaury Department July 1-February 28 Percent District 1956-57 1955-56 change TEXAS ·-··········---· $1,444,595,264t $1,800,582,157 + 11 Income ···-·-··-·-··-·-·········-·-····· Employment ···­·-·-··············-· Withholding ·············-·-········· 646,479,981 20,078,942 724,991,136 528,693,851 20,042,070 633,557,758 + 8 •• + 14 Other ····-·········--····-········-····-· 158,045,252 118,288,978 + 29 SOUTHERN DISTRICT ····--······ 757,742,956 688,304,181 + 10 Income ·····-········--·-·-··-············· 284,S75,355 2.74,623,087 + 4 Employme11t ·············-·--···-· Wlthboldinir -··-····················· 5,607,819 874,364,298 4,884,009 336,774,470 + 15 + 11 Other ·---··-·-·························-· 92,895,488 72,022,666 + 29 NORTHERN DISTRICT ........... . 686,852,808 612,277,976 + 12 Income ·--····-·······················-­261,604,576 254,070,314 + 3 Employment ···-····-········-···· Withholding ···-····-··-·-········· Other ·--·-·····--·························· 14,471,128 850,626,848 60,149,764 15,158,061 296,783,28S 46,266,313 -6 + 18 + 8G **Change is lesa than one-half of one percent. tDetalla do not add to totals due to rounding. TEXAS BUSINESS REVIEW. Results of the first quarter of the year indicate that earnings LOANS BT IAVIMCI AND LOAN AUOCIATIONI will be substantially greater during 1957 than in 1956. loara: Federal Heme lA&Jl Bank of Little Jtoc.lc The Pearl Brewing Company reported that 1956 earnings equalled $2.06 a share on the 1.2-million common shares Percent change outstanding on December 31. Earnings for 1955 amounted Feb 1957 Feb 1957 to $1.96 a share. Sales of $25.2 million in 1956 were up Feb Jan Feb from from Type 1957 1957 1956 Jan 1957 Feb 1956 nearly 10% over the $23.2 million of products sold in 1955. Falstaff Brewing Corporation and subsidiaries earned Number $2.12 on each of the 1.9-million common shares outstanding ALL LOANS ----·-· 3,497 3,409 3,785 + 3 -8 during 1956. This was a decline in net profit of 15 cents a Construction ···-------------535 589 650 -9 -18 . share from 1955 to 1956. Net sales of $84.8 million were Purchase ----------------------·-· l,337 l ,833 l,865 2 Other 1,625 1,487 l,770 + 9 8 ------------------···--------­ improved over the $77 million for 1955. Value (thousands of dollars) Lone Star Cement Corporation and its wholly owned ALL LOANS .......... 21,443 21,634 23,068 l 7 subsidiaries reported combined earnings of $2.20 a share Construction ------------5,014 5,309 6,549 6 - 23 for 1956. This is a slight increase over the $2.04 per share Purchase 10,632 10,672 10,240 •• + • earned in 1955. Other -----------------5,797 5,653 6,279 + 3 -8 Sales of $94.3 million exceeded the $91.5-million sales **Change la less than one-half of one percent. in 1955. Net profit after taxes of $16 million exceeded 1955 net profits by more than $1 million. basis. This will increase the total number of shares to 76 Oil, GAS, AND SULPHUR million. Earnings rose to $4.99 a share in 1956, a 2% increase Directors of the Humble Ou and Refining Company have over the $4.88 earned in 1955; net profits rose relativelyapproved a plan to split the company's stock on a 2-for-l less than the total volume of business because of rising costs. Capital expenditures of $184 million in 1956 were below CHANGES IN CONDITION OF WEEKLY REPORTING MEMBER the $210 million spent in 1956. Last year Humble com­ BANKS IN THE DALLAS FEDERAL RESERVE DISTRICT pleted 692 producing wells and abandoned 213 dry holes. Source : Board of Governors of the Federal Reserve System In 1955 there were 665 completions and 192 abandonments. Shamrock Oil and Gas Corporation earned $3.92 a share Percent change• in 1956, an improvement over the $3.37 per share earned Feb 1957 Feb 1957 Feb 1956 from from from in 1955. First quarter 1957 net is expected to compare Account Jan 1957 Feb 1956 Jan 1956 favorably with the Sl.14 a share earned in the first quarter TOTAL ASSETS -·-·····-··---•* + l •• of 1955. Loans and investments, less The management's program designed to convert the loans to banks and company into an integrated operation is progressing satis­ valuation reserves ............ -1 •• 1 Loans, less loans to banks and factorily and is expected to result in a further improvement valuation reserves .............. •• •• in profits. Commercial, industrial, and An isobutane plant under construction at the company's agricultural loans ---------------------2 z refinery near Dumas, scheduled for completion next fall, Loans for purchasing or will boost the company's production of premium-priced carrying securities ----------·---------+ 3 + 15 •• Real estate loans ------------------------------2 8 + 1 aviation gasoline. In addition to the isobutane plant, a sul­ Other loans _______ --------------------------------** + 3 •• phuric acid plant will be constructed and is expected to be Total U. S. Government in operation by 1958. securities -------------------------------2 -2 •• The company's stockholders approved an expansion in Treasury bills -··-··--··-··-·-···-----------------+ 4 + 29 + 22 Treasury certificates of the number of authorized common shares to 5 million, indebtedness __ --------------------------· -13 + 46 -5 which doubles the 2.5 million previously authorized. The Treasury notes -----------------------------------7 -21 •• board of directors has no explicit plans at present for the Bonds --------------------------------------l -1 - 1 use of the additional stock. Other securities ·-·------------------------­+ 5 + 5 + 1 Loans to banks -·---·-------------------­+800 +238 + 60 Texas Gulf Sulphur Company reported a decline in net Reserves with Federal profit to S2.81 a share in 1956 from the $3.23 per share Reserve banks ------·-----------·--7 -3 2 earned in 1955. Gross revenues from sales declined to $84.6 Cash in vaults _____ ----------------------+ 2 + 11 + 2 Balances with domestic banks + 11 + 11 + 2 million from the $93.6 million received in 1955. The drop­Other net assets ·------------------------8 + 21 + s off was attributed to declining exports and export prices TOTAL LIABILITIES ___ _ •• + l and to adverse effects of the steel strike on domestic ship­ Total adjusted deposits -----------2 -2 •• Demand deposits ---------------------· -3 -3 -l ments. Reduced output of fertilizer, a major user of sul­Time deposits ----------------------------------­•• + 3 + l phuric acid, also played a part. U. S. Government deposits -----·--·----· + 45 -20 + 48 Production during 1956 was the highest on record. Much Total interbank deposits -----·-·---· + 5 + 7 -4 Domestic banks ---·---·-·----------------·-·--­+ 5 + 7 -4 _of the sulphur produced went into stockpiles. Foreign banks --------------------------------·-· + 12 + 6 + 13 A new plant in Mexico started operations in FebruaryBorrowings -··---------·-········-------······ + 23 41 29 + -1957, and another plant is being built at Fannett, Texas. Other liabilities ---------------------·-----­-9 + 35 + 10 CAPITAL ACCOUNTS -· + l + 7 + l Exploratory drilling offshore near Galveston is underway in an area where sulphur has been found. The company *Percentage changes are based on the week nearest the end of the also is drilling a sulphide ore body in New Brunswick, month. **Change is less than one-half of one percent. Canada. Local Bu,siness Conditions Percent change Percent change Feb 1957 Feb 1957 Feb 1957 Feb 1957 City and item February 1957 from Jan 1957 from Feb 1956 City and item February 1957 from Jan 1957 from Feb 1956 ABILENE (pop. 55,000r) Retail sales -----------­------­-­------­------------­----------­Apparel stores --------------------­-----------------­Postal receipts ------------------------------------­-------$ Building permits, less federal contracts $ Bank debits (thousands) ___ ___ ___ _______ _ _______ _$ 69,666 1,082,435 74,874 -17 -17 -26 + 22 6 + 14 9 -50 + 8 BAY CITY (pop. 14,042r) Retail sales Automotive stores ··----······--····--·········-···­Postal receipts ·······---------······--·············-----·· $ Bank debits (thousands) ·······-···--···--··----$ End-of-month deposits (thousands ) t ....$ 8,564 10,256 18,602 + 11 -24 -13 -5 + + 2 + 15 + 3 End-of-month deposits (thousands) t ­---$ Annual rate of deposit turnover__ ___________ _ Employment --------­--------------------------------------­Manufacturing employment ------------­--­Percent unemployed ----------­----------------------­ 60,816 14.5 30,200 3,510 5.7 + 3 3 •••• 2 + 9•• + 8 + 4 •• Annual rate of deposit turnover.............. BAYTOWN (pop. 22,983) Postal receipts .._......................................_..$ Buildin g permits, less federal contracts $ Bank debits (thousands) .-......................$ 6.4 15,683 325,850 18,513 -11 -49 -14 -7 + 10 -6 -48 + 3 ALPINE (pop. 5,261) Postal receipts ·-··--·--­-··--·-···-·--·-··--­-··--·-·-···­$· Building permits, less federal contracts $ 3,092 3,000 -44 -86 -2 -92 End-of-month deposits (thousands) t ..-.$' Annual rate of deposit turnover_. ___________ _ Employment (area) ··-····--··--····················· Manufacturing employment (area) .... 26,631 8.4 418,000 93,500 + 3 -15 •••• + 2 + 7 + 8 Bank debits (thousands) ---­---­---­---··-····--·­$ 2,281 -10 + 3 Percent unemployed (area) ----­-------------·­ 3.6 + 3 + 9 End-of-month deposits (thousands) t ­--·$ Annual rate of deposit turnover_____________ _ 4,168 6.5 -- 2 10 + 3•• BEAUMONT (pop. 104,416r) Retail sales -·--·-······-····--····-·························· -10 + 3 AMARILLO (pop. 125,049r) Retail sales ·------------­----·­------­--····--·····----···-··· - 6 + 13 Apparel stores ··--···--·--···--· --·······--·····-----· Automotive stores --------------------------·------­Food stores ____ ___ __ ____________ --·­--­---·---···-­-···· -12 -11 -11 + + 2•• Apparel stores ···········----·--····--·-·-·-···-·-·-·· Automotive stores ----------------------------·····­ -18 1 + 9 + 30 Furniture and household appliance stores _______ __ _---­------------------· - 9 -11 Drug stores ·····­··-·-···-·---·-··-·--····-·­-··­·­-·---· Eating and drinking places ---­-··--------­ 7 7 + 8 + 12 Gasoline and service stations ······-··--··· General merchandise stores --·-­-­----­-----­ -2 -10 + 5 + 4 Food stores --­·--·-··-­·--------­--·-------··---·-·-·-··· 4 -13 Lumber, building materials, Furniture and household and hardware stores ---·--·······-···-········ - 3 + 7 appliance stores -··---··---·-··········-·­--·-··­· Gasoline and service stations __ _ 3 + 5 + 11 -12 Postal receipts ------·--·-----·------­·-····­-·­---····---­$ Building permits, less federal contracts $ 89,441 1,114,508 -29 -13 + 10 +169 Liquor stores -----··----· ----------------------------·-­· Lumber, building material, -10 + 2 Bank debits (thousands) -----------------------$ End-of-month deposits (thousands) 1....$ 145,556 109,374 - 5 2 + 13 + 2 and hardware stores .......................... Office, store, and school supply dealers Postal receipts ·­·-----·---··-·---­·­-­--------------------$ Building permits, less federal contracts $ 145,674 2,526,229 + 35 -16 -35 -32 + 21 + 24 + 14 + 53 Annual rate of deposit turnover______ _______ _ Employment (area) -------------------------·---­Manufacturing employment (area) ---· Percent unemployed (area) ------------···--··· 15.8 85,200 29,230 5.2 -1 •••• + 16 + 13 + 8 + 10 -5 Bank debits (thousands) -----­---··-······--··-··· $ End-of-month deposits (thousands) 1---­$ Annual rate of deposit turnover__ ·······-···· Employment Manufacturing employment -­··--·-··----·­Percent unemployed ------·-·---·-·---····--···-·--··· 161,241 102,942 18.5 47,500 5,200 5.9 11 4 7 •••• + 16 + 17 -4 + 22 + 5 + 1 + 9 BEEVILLE (pop. 10,500r) Retail sa les Automotive stores ---------------------·--·········· Postal receipts ...........................___ ____________ __ $ Building permits, less federal contracts $ Bank debits (thousands ) ·-·---··-------------···--$ 6,754 6~.230 8,016 + 8 -43 -19 7 + 1 -8 + 84 + 15 End-of-month deposits (thousands) L .. $ 12,452 - 3 - 1 ARLINGTON (pop. 27,550r) Postal receipts -····-·-­·--­·----­··-----·----··-·····­·­-·$ Building permits, less federal contracts $ Employment (area) ·-­------­----------·---------···· Manufacturing employment (area) ._ _ P ercent unemployed (area) ---------­-­-------­ 24,252 730,006 202,300 68,150 5.2 -39 +156 1 + 1 + 4 + 53 -44 + 5 + 12 + 11 Annual rate of deposit turnover_________ ____. BIG SPRING (pop. 24,442r) Retail sales ····----···--------------------·--······-----------­Apparel stores --·············-----·------------······· Drug stores -----------------------·······--·-·---------·· Lumber, building material, 7.6 -16 -34 -6 + 15 -16 + 13 5 and hardware stores ······--­-·-----------·--· -11 1 AUSTIN (pop. 168,500r) Retail sales ······--··-···--·-· -·---·-··--·-··--····-·-·-· Ap parel stores ---------·------­----·­-­-----­·--­··-· · Automotive stores ·----········----­··-··---·-­-··-­Eating and drinking places ---·--·· ····· ··· Food stores ·--------···-----·--················--·-----·· Furniture and household 8 18 14 9 6 -8 + 16 -12 + 4•• Postal receipts ·-----·----------------·--··--···---·-­.... $ Building permits, less federal contracts $ Bank debits (thousands) ·········---------·----­--$ End-of-month deposits (thousands) L -$ Annual rate of deposit turnover.............. BORGER (pop. 18,059) Retail sales 21,970 235,450 27,862 25,080 13.0 -12 + 90 -10 5 -3 + 21 -26 + 18 -8 + 26 appliance stores -19 6 Automotive stores . ----·········-·------------···-­ - 6 + 16 Gasoline and service stations + 12 9 Building permits, less federal contracts $ 90,261 +403 + 16 Lumber , building material, and hardware stores .......................... + 7 -25 Bank debits (thousands) --------------·----······-$ End-of-month deposits (thousands) L .. $ 16,609 16,840 - 3 2 + 15 + 7 P ostal receipts ··------­----···--·· -------.. .. ............$ 279,659 5 Annual rate of deposit turnover 11.7 + 8 Building permits, less federal contracts $ Ba nk debits (thousands ) ·-·--·-------­---····--·· $ End-of-month deposits (thousands) L .. $ Annua l rate of deposit turnover.. ......._. __ _ Employment ··----·--------······-·--------­···--········-·· Ma nufacturing employment -----­-·--·····­P ercent unemployed ··--·····---------····--­-----·--· 2,627,910 152,219 117,652 16.0 70,200 5,210 4.2 -53 12 + 5 10... + 2 + 17 + 12 + 2 + 13 + 4 + 8 + 2 BRADY (pop. 5,944·) P ostal receipts ...... ------­---------····· $ Building permits, less federal contracts $ Ba nk debits (thousands) -----·· ·······----·---·-··$ End-of-month deposits (thousands ) 1....$ Annual rate of deposit turnover.. ____ ....... 3,061 500 3,104 6,801 5.9 -49 -64 -19 -1 -16 + •• + ' + 9 For explanation of symbols, see page 23. TEXAS BUSINESS REVIEW Percent change Percent change Feb 1957 Feb 1957 Feb 1957 Feb 1957 City and item February 1957 from Jan 1957 from Feb 1956 City and item February 1957 from J an 1957 from F eb 1956 BRENHAM (pop. 6,941) Postal receipts ........................................... $ Building permits, less federal contracts $ 5,889 37,929 -35 -18 -2 + 59 CORSICANA (pop. 19,211) Postal receipts ............................................~ Building permits, less federal contracts $ 12,268 80,853 -58 •• + 4 -42 Bank debits (thousands) .......................... $ 6,371 - 8 + 12 Bank debits (thousands) ........................ $ 16,030 6 + 19 End-of-month deposits (thousands) t ....$ 12,309 - 5 - 4 End-of-month deposits (thouoands) L ..$ 23,373 + + 4 Annual rate of deposit turnover ............. . 6.1 + 15 Annual rate of deposit turnover ........ . 8.3 8 + 15 BROWNSVILLE (pop. 36,066) Retail sales ................................................. . + 3 + 10 DEL RIO (pop. 14,211) Postal receipts .................... ........................ $ 8,871 -41 - 6 Automotive stores ---·--····--··· 9 1 Building permits, less federal contracts $ 31,650 -52 -GO Lumber, building material, and hardware stores ...... -----·············· + 34 + 13 Bank debits (thousands) ........................ $ End-of-month deposits (thousands) t ....$ 7,403 10,839 -19 -2 •• Building permits, less federal contracts $ 211,655 + 64 -28 Annual rate of deposit turnover ... 8.1 - 15 4 BROWNWOOD (pop. 20,181) Retail sales ................................................. . + 2 + DENISON (pop. 17,504) Retail sales Apparel stores ....................................... . 4 + Automotive stores ................................. . -13 - 8 Automotive stores ............... . + 4 + Postal receipts ............................................ $ 16,990 -17 Furniture and h ousehold Building p ermits, less federal contracts $ 30,714 -39 -55 appliance stores ········-··-----·--­P ostal receipts ........................................... $ Building permits, less federal contra cts $ 15,415 46,750 5 -27 + 1458 -17 + 74 Bank debits (thousands) .......................... $ End-of-month deposits (thousands ))....$ Annual rate of deposit turnover__ ______ _ 14,467 16,691 10.4 5 •• 2 + 13 + 11 + 12 Bank debits (thousands) .......................... $ End-of-month deposits (thousands ) L ..$ Annual rate of deposit turnover............. . BRYAN (pop. 23,883r) Retail sales ................................................. . Apparel stores ....................................... . Automotive stores -------····················-··---· 9,542 11,875 9.6 15 1 13 -11 -32 + 3 7 •• 2 •• 3 1 DALLAS (pop. 538,924u) Retail sales ................................................. . Apparel stores Automotive stores ................................. . Drug stores ............................................ . Eating and drinking places ................. . Florists ............................................. -g -18 + ( -2 •• -4 3 + 7 + 1 + 3 13 Food stores ............................................. . -10 + 16 Food stores .............................................. . -10 4 Lumber , buildin g material, Furniture and household and hardware stores ....................... . P ostal receipts ......................... .$ 19,511 -8 -32 -21 3 appliance stores ·-·-····--·----------------·-···-­Gasoline and service stations ----····-··--· 1~ 4 -12 •• Building permits, less federal contracts $ 347,775 -51 12 General merchandise stores ··-··--····-····-­ - 6 CORPUS CHRISTI (pop. 165,458r) Retail sales .............. . Apparel stores ................ ...................... . Automotive stores -----­___ --------------------­Lumber, building m aterial, and hardwa.re stores ---­----------------­Postal receipts ........................................... $ Building permits, less federal contracts $ Bank debits (thousands) .......................... $ End-of-month deposits (thousands))....$ Annual rate of deposit turnover._____ _______ _ Employment ................ .............................. . Manufacturing employment -------------·-· Percent unemployed ................................ . 124,378 1,064,416 171,104 111,608 18.4 64 ,400 8,300 6.5 -8 -27 6 4 -33 -38 -14 -1 -12 •••• + 8 + 11 + 5 + 19 + 15 + 5 -41 + 7 + 5 + 2 + 2 + 3 8 Jewelry stores Liquor stores .. Lumber, building material, and hardware stores ---··-·····-··---­-------­Office, store, and school supply dealers Postal receipts ............................................ $ 1,592,089 Building permits, less federal contracts$ 7,253,749 Bank debits (thousands ) .......................... $ 1,980,949 End-of-month deposits (thousands ) t....$ 967,923 Annua l rate of deposit turnover.............. 24.4 Employment (area) ............................ 336,600 Manufacturing employment (area) .... 88,400 Percent unemployed (area) .................... 3.1 DENTON (pop. 21,372) -21 + 12 + 12 -6 -11 -18 -23 -1 17 •• + 2 + 11 -31 + 13 + 3 + 2 -50 + + •• + 9 + 11 EDINBURG (pop. 15,993r) Postal receipts ............................................ $ Building permits, less federa l contracts $ Bank debits (thousands) .......................... $ End-of-month deposits (thousands) t .... $ Annual rate of deposit turnover............. . EL PASO (pop. 244,400r) Reta il sales ................................................. . Apparel stores ...................................... . Automotive stores Drug stores ............ . Food stores ................ . General merchandise stores ___ _ Lumber, building m aterial, and hardware stores _ Postal receipts .............................. $ Building permits, less federal contracts $ Bank debits (thousands) ........................ $ End-of-month deposits (thousands) t ....$ Annual rate of deposit turnover ........... . Employment ............................................. . Manufacturing employment --------­Percent unemployed ........................ . 7,940 33,200 9,920 7,720 14.7 194,681 4,719,417 251,043 143,805 21.l 78,500 12,900 4.8 -35 -12 + 10 -9 7 + 2 6 5 4 + 4 -28 +180 10 + 2 9 •• + 4 + -32 + 37 -5 + 40 + + 16 -8•• + 16 + 4 + 16 + 5 + 86 + 8 + 8•• + 4 + 7 .( Retail sales Drug stores _----·--·----------­-------------------·-·-·­Postal receipts ............................................ $ Building permits, less federal contracts $ Bank debits (thousands) ........................ $ End-of-mon th deposits (thousands ) t....$ Annual rate of deposit turnover ............ . GALVESTON (pop. 71,527u) Retail sales ................................................. . Apparel stores ...................... . F ood stores .................. ............................. . Lumber, building material, and hardware stores ---·--·-··--------·· P ostal receipts ........................................... $ Building permits, less federal contracts $ Bank debits (thousands ) ........................ $ End-of-month deposits ( thousands) L . $ Annual rate of deposit turnover__ __ _______ _ Employment ( area ) ............................... . Ma n ufacturing employment (area) P ercent unemployed (area) For explanation of symbols, see page 23. 19,706 246,650 12,581 16,657 9.2 69,886 293,723 86,088 73,194 14.2 48,700 11,400 5.7 -4 -27 6 9 + 2 7 15 8 7 + 7 -21 +194 -12 •• 9 + + + 5 + 23 + 3 2 + 6 + z + ' + 16 •• -27 + 18 + 4 + 12 + •• -7 APRIL 1957 LOCAL BUSINESS CONDITIONS Percent chana-e Percent change Feb 1967 Feb 1957Feb 1957 Feb 1957 February from from February from from City and item 1967 Jan 1957 Feb 1956 City and item 1957 Jan 1957 Feb 1956 HARLINGEN (pop. 30,038r)FORT WORTH (pop. 315,578u) Retail sales -5 •• Retail sales -------------------------------------------------­ Automotive stores ---------·-----··-------------·-·· •• •• Apparel stores -----------------------------------------19 •• Lumber, building material,Automotlve stores __ _ -----------------------------+ 2 •• and hardware stores .......................... -5 -6 Drug stores ---------------------------------------------­ 8 -5 Postal receipts ----------------····--······················$ 27,018 -26 + 4 9 Eating and drinking places ------------------ •• Building permits, less federal contracts $ 297,450 -1 -38 8 -8 Food stores ---------------------------------------------­ Bank debits (the>usands) ··-·----·---------------·-$ 28,359 -19 5 Furniture and household End-of-me>nth deposits (thousands) t ....$ 21,768 -2 2 appJiance stores ----········---------············· Annual rate of deposit turnover_________ __ __ _ 15.4 15 4 10 -12 - Gasoline and service stations ----------·-·· 5 •• General merchandise stores -----------------­-9 •• HENDERSON (pop. 11,606r) Hay, grain and feed stores -----------------­-15 + 4 Retail sales ---·--·---------------·········-----··------------20 9 Lumber, building material, Apparel stores ---·--···········-·····-·----··----·--·--21 8 and hardware stores -------------------------­+ 7 Automotive stores ··········----···· -30 8 Postal receipts --------------------------------------------$ 604,861 -29 + 7 Drug stores --------·-···-··-·-··--· ----·-----···----···· -10 4 Building permits, less federal contracts $ 3,896,422 -43 14 Furniture and household Bank debits (thousands) ____________________ ____ $ 633,912 -19 + 12 appliance stores __ _______ -----·-········-······-+ 27 -29 End-of-month deposits (thousands) 1----$ 367,974 •• + 4 General merchandise stores ·-·-············-· -8 + 10 Annual rate of deposit turnover ------------­ 20.6 -18 + 8 Lumber, building material, Employment (area) ----------------------------------202,300 + 5 and hardware stores ·-··-·····-·---·-·-------· + 12 -18 Manufacturing employment (area) ___ _ 68,150 + + 12 P ostal receipts ····-·--------------···· $ 7,978 -33 + 3 Percent unemployed (area) -------------------­ 5.2 + 4 + 11 Building permits, Jess federal contracts $ 32,750 -16 -72 Bank debits (thousands) ·········-····-···------$ 6,626 -23 -16 End-of-month dep<>sits (thousands ) 1----$ 14,430 -1 •• GARLAND (pop. 10,571) Annual rate of deposit turnover.............. 4.7 -16 Building permits, less federal contracts $ 308,182 + 25 -29 Bank debits (thousands) ·--·------------·-··-···$ 13,780 -15 + 9 HEREFORD (pop. 8,500r) End-of-month deposits (thousands) t....$ 12,987 + 2 + 2 Postal receipts -·--·--···--····--··--·······----·-·······-·$ 5,141 + 10 Annual rate of deposit turnover.............. 12.8 -13 + 8 Building permits, less federal contracts $ 122,800 +137 + 19 Employment (area) --·-·-·--···------------·····-···· 336,600 •• + 4 Bank debits (thousands) ·---·---···-··-····-·-····$ 8,731 -24 + 39 Manufacturing employment (area) _ 88,400 + 2 + 9 End-of-month deposits (thousands) t....$ 11,212 -4 + 22 Percent unemployed (area) -·········-·····--·-3.1 + 11 + 11 Annual rate of deposit turn<>ver.............. 9.1 -22 + 17 HOUSTON (pop. 700,508u) GIDDINGS (pop. 2,532) -4 Retail salesH -----·----------··--------······-----------··· Postal receipts ··--------·--·-···········--·-·-------·-····$ 2,158 -35 -22 Apparel storesH ··--·--------····-------------------·--17 4 Bank debits (thousands) ----················----$ 1,675 -11 + 5 Automotive storesH ................................ 6 4 End-of-month deposits (thousands) L ..$ 3,836 + 12 -1 Drug storesIT --···-·····-···-·-------·----------------·-· 6 •• Annual rate of deposit turnover.............. 5.5 -15 + 10 Eating and drinking pJacesH ------·----·-· 1 + FC>C>d stores ---···---··-···-·-····--·-··------------·------· + 4 •• Furniture and household GLADEWATER (pop. 5,305) Bank debits (thousands) -·-········--·-·--------$ 8,429 -14 1 appliance storesV ···-···-··--··-------·--·-·····­-18 + 2 End-of-month deposits (thousands) 1....$ 4,189 -3 3 Gasoline and service stationsH -·--------·­5 + 7 Annual rate of deposit turnover.............. 9.7 8 + General merchandise storesH ---·---········· + 3 6 Lumber, building material, Employment (area) ·······---------·--------·-······· 25,400 •• + 4 + Manufacturina-employment (area) .... 4,830 + 13 and hardware storesIT ----·---------·········· 4 + Percent unemple>yed (area) ----················ 4.1 -2 -6 Other retail stores ·----------·-······--···--------·-4 2 Postal receipts ··-----·--·--·---··-··-·--·-------·--·······$ 1,089,050 -37 + 10 Building permits, less federal contracts $21,455,533 -24 + 32GOLDTHWAITE (pop. 1,566) Bank debits (thousands) ····---·------·---········$ 2,142,992 -16 + 7 Postal receipts ··········---···--·---··----·-----·-········$ 1,220 -72 -42 End-of-month deposits (the>usands) t....$ 1,233,317 -1 + 8 Bank debits (thousands) ---·-·····-·····-·---·-·$ 2,493 -19 + 19 Annual rate of deposit turne>ver.............. 20.8 -13 + 5 End-of-month deposits (thousands) t....$ 2,912 -1 + Employment (area) ·····-·------···-·········----·---418,000 •• + 7 Annual rate of depooit turnover.............. 10.2 -14 + 17 Manufacturing employment (area) .... 93,600 •• + 8 Percent unemployed (area) ·--·-·····----------8.6 + a + 9 GHAND PRAIRIE (pop. 14,594) JASPER (pop. 4,403) Retail sales Postal receipts -------··········----····-··········--·-···-$ 16,981 -27 + 3 Building permits, Jess federal contracts $ 228,832 -55 + 26 Automotive stores ·····--------··--········--·-· -4 2 Furniture and household Employment (area) ·---·-····-·······---····---------336,600 •• + 4 Manufacturing employment (area) .... 88,400 + 2 + 9 appliance stores ···············---·----··········· -21 7 Percent unemployed (area) .................... 3.1 + 11 + 11 General merchandise stores .................. -4 5 Postal receipts ········---------··········-----------·····-$ 4,627 -33 + 21 Bank debits (thousands) ···-·---·-·--------··--··-$ 6,681 -16 + 2GREENVILLE (pop. 17,5001"} End-of-month deposits (thousands) L ..$ 7,015 •• +· 7 Retail sales ····--·-·-----·---·-·----·-···----------·---------+ 2 + 35 Annual rate of deposit turnover -·--·------·· 9.7 -12 4 Apparel stores -·---·-···-·-----·-·········---·-·-------25 -2 Drug stores -----------------------------·-·-----·--------6 + 6 KILGORE (pop. 9,638) F ood stores ·-·-·······-·-·-·····························-+ 4 + 35 Postal receipts ------·-------·······--··-------·---·-·-----$ 9,982 -41 + 2 Building permits, Jess federal contracts $ 316,652 +135 + 6 Lumber, building material, and hardware stores .......................... + 21 -1 Bank debits (thousands) ···-······--··---··---··-$ 13,620 3 End-of-month deposits (thousands) 1--· $ 15,113 2 Building permits, less federal contracts $ 274,911 +104 + 341 Bank debits (thousands) ..........................$ 11,721 -20 + 7 Employment (area) ···---·---·-·-----·-----··-·-·--·· 25,400 + •• 1 + 4 Manufacturing employment (area) __ _ 4,830 + 13 End-of-month deposits (thousands) L ..$ 14,728 -1 •• Percent unemployed (area) ................... 4.1 -2 -6 Annual rate of deposit turnover____ _________ _ ·9_5 -17 + 8 For explanation of symbols, see page 23. TEXAS BUSINESS REVIEW Percent change Percent change Feb 1957 Feb 1957 Feb 1957 Feb 1957 February from from February from from City and item 1957 Jan 1957 Feb 1956 City and item 1957 Jan 1957 Feb 1956 KILLEEN (pop. 21,076r) McALLEN (pop. 25,326r) Postal receipts --------------------------------------------$ 18,020 -26 -12 Retails sales ·--·-······-·--------·--··········---------·-··· -5 8 Building permits, less federal contracts $ 29,250 ­ 12 66 Automotive stores --··-·····--·· -----·············· + 4 7 Bank debits (thousands) ------------------------$ 5,992 7 -19 Postal receipts ··-·····-·--------·-················--------$ 19,198 -29 + 2 End-of-month deposits (thousands) t __ $ 7,404 •• + 20 Building permits, less federal contracts $ 141,591 -70 -82 Annual rate of deposit turnover ------------9.7 -32 Bank debits (thousands) ·-·-·····-·-··-··------$ 19,782 -12 + 10 End-of-month deposits (thousands) t ..$ 20,470 + 15 + 6 LAMESA (pop. 10,704) Annual rate of deposit tur noYer ··········-· 12.4 -12 + 11Postal receipts ··-------·-···-------·----····------····--·-$ 6,675 -30· + 12 Building permits, less federal contracts $ 78,650 ­ 11 + 44 MARSHALL (pop. 25,479r) Bank debits (thousands) ·····-·--------·-····---$ 10,207 -28 + 10 End-of-month deposits (thousands) t .. $ 14,483 -+ Retail sales ---·-·········---------····--··············-···-· -9 6 4 5 Drug stores ·····-----··-----···········--·-·-··-··-----·--5 6Annual rate of deposit turnover ---·--······ 8.3 -24 + 5 General merchandise stores -14 8 LAMPASAS (pop. 4,869) Postal receipts ·-·········-----·--·-···-··$ 20,711 -23 + 11 Postal receipts -----------··-·-··--------········-----·----$ 2,861 -52 + 4 Building permits, less federal contracts $ 109,250 + 31 -81 Building permits, less federal contracts $ 51,040 +3083 + 192 Bank debits (thousands) -···············--·-·---$ 13,640 -26 -6 Bank debits (thousands) --------·--·······------$ 4,061 -16 End-of-month deposits (thousands) t . $ 19,697 -3 -7 End-of-month deposits (thousands) L ..$ 5,810 -4 -6 Annual rate of deposit turnover ----·-··--·· 8.2 -23 •• Annual rate of deposit turnover .... 8.2 -12 + + 14 MERCEDES (pop.10,081) LAREDO (pop. 59,350r) Postal receipts -------------·-···············-·············$ 4,049 -30 + Postal receipts ··-------------·-······------···-········-$ 22,955 -35 -3 Building permits, less federal contracts $ 14,800 +272 + 2 Building permits, less federal contracts $ 31,280 -67 -70 Bank debits (thousands ) ·-·····--··-·-·····--·--$ 5,463 -19 13 Bank debits (thousands) ·-··-············--·-··-$ 21,808 -12 + 7 End-of-month deposits (thousands) t ..$ 6,080 -4 +End-of-month deposits (thousands) t ..$ 19,598 + 3 •• Annual rate of deposit turnover _________ _ 10.5 -27 -17 Annual rate of deposit turnover ··-······· 13.3 -12 + 6 MIDLAND (pop. 42,60Qr) LLANO (pop. 2,954) Postal receipts ----------------------------·-······-·-·--··$ 62,489 -32 + 19 Postal receipts ··--------------------·-·······-·········-·-$ 1,863 -30 + 5 Building permits, less federal contracts $ 2,806,000 + 55 + 96Building permits, less federal contracts $ 7,500 +loo -62 Bank debits (thousands) ------·-------··--------$ 69,155 -21 + 9Bank debits (thousands) ·----------------······-$ 1,982 -10 + 11 End-of-month deposits (thousands) t __ $ 82,063 + 7 +End-of-month deposits (thousands ) t ....$ 3,409 2 + 11 Annual rate of deposit turnover ---·---·-· 10.4 -19 + 5Annual rate of deposit turnover ···········-6.9 •• MONAHANS (pop. 6,311)LOCKHART (pop. 5,573) Postal receipts ····-··-···---·····-··--·-··---------····---$ 5,321 -40 + 6Postal receipts ---------·-------------······-·············-$ 3,128 -34 + 6 Building permits, less federal contracts $ 163,115 + 83 +587 Building permits, less federal contracts $ 15,500 +474 -28 Bank debits (thousands) ········-------------·--$ 8,191 -15 + 2Bank debits (thousands) ------------------------$ 3,335 2 + 9 End-of-month deposits (thousands) t ..S 8,427 -5 + 10 End-of-month deposits (thousands):.... $ 4,568 7 7 Annual rate of deposit turnover 11.4 -15 9 Annual rate of deposit turnover ········-··-8.5 + 2 + 15 LONGVIEW (pop. 34,328r) NACOGDOCHES (pop. 12,327) Postal receipts --·-------------------·---------------------$ 28,076 -28 Postal receipts -··················-------------------------$ 10,556 -10 + 4 Building permits, less federal contracts $ 192,950 -15 -87 Building permits, less federal contracts $ 37,545 -84 -49 Bank debits (thousands) ........................ $ 34,185 -18 2 Bank debits (thousands) ·····-----------·-··-·--$ 11,003 17 + 7 End-of-month deposits (thousands) t ....$ 38,525 + 3 + 2 End-of-month deposits (thousands) t __ $ 14,784 •• + Annual rate of deposit turnover ----·--··· 8.9 14 + 7 Annual rate of deposit turnover ----··--·· 10.8 -16 3 Employment (area) ....... ----·········----····-----25,400 •• + 4 NEW BRAUNFELS (pop.12,210)Manufacturing employment (area) .. 4,830 + + 13 -24 + 18 Postal receipts ·····-·-···-··---·-·····-·-···---······--··-$ 15,541 Percent unemployed (area) ·-···-·············· 4.1 2 5 Building permits, less federal contracts $ 71,110 -39 -60 Bank debits (thousands) --------······-··········$ 8,944 4 + 15 LUBBOCK (pop. 134,156r) End-of-month deposits (thousands) t ....$ 9,226 + 4 -7 Retail sales ····-----------------------·-···-·····-··--·--·-·· -20 + 5 Annual rate of deposit turnover__ ______ _ 11.9 4 + 28Apparel stores ········-···------------------·······--­-28 3 Automotive stores ·-·-····················---------­15 9 ODESSA (pop. 50,807r) Furniture and household Retail sales appliance stores ··-·-·····------------·-·-·-·--·-· 9 + 6 Appliance stores ········-------·····-·-············-· •• -12 General merchandise stores ······-··--··--·-­-23 + 22 General merchandise stores ·---·-·········· -24 + 21 Lumber, building material, and receipts 46,143 -29 + 12 Postal -------·········-········--·· ------·······-$ hardware stores ··-··--·-···-···············-···-· -34 + 30 Building permits, less federal contracts $ 1,136,535 -15 14 Postal receipts ····-···-·-·-·····----------··--·-··········$ 87,277 -38 Building permits, less federal contracts $ 1,505,093 -68 -19 ORANGE (pop. 21,174) Retail sales Bank debits (thousands) -····-··········------·---$ 139,304 -25 + 13 End-of-month deposits (thousands) t .. $ 101,600 -9 + 6 Automotive stores ---------··-·········--·-·· -10 + 6 Building permits, less federal contracts $ 306,648 3 +190 Annual rate of deposit turnover ........... . 15.7 -17 + 5 Bank debits (thousands) ····--·-··--····-·······$ 20,629 -8 + 14 Employment ----------·················---------·······-··--43,500 -1 •• End-of-month deposits (thousands) t ....$ 22,310 -4 -11Manufacturing employment ····-·····-···-· 4,340 •• + 8 Annual rate of deposit turnover____ __________ 10.9 •• + 24 Percent unemployed ------------·········-·-·······---5.4 + 6 2 PALESTINE (pop. 15,063r) LUFKIN (pop. 18,600r) 14,664 -24 -8 Building permits, less federal contracts $ 50,335 -36 -83 Building permits, less federal contracts $ 171,100 + 9 -24 Bank debits (thousands) ---------··············---$ 6,916 -21 + 14 Bank debits (thousands) ----····-----·········--$ 18,429 -19 6 End-of-month deposits (thousands) L .. $ 13,467 + 2 + 3 End-of-month deposits (thousands) t __ $ 23,610 + 5 + 2 Annual rate of deposit turnover............. . 6.2 + 2 Annual rate of deposit turnover ·········-·· 9.6 5 Postal receipts ---------······-----·····-···--·······----$ For explanation of symbols, see page 23. APRIL 1957 LOCAL BUSINESS CONDITIONS Percent change Percent change City and item February 1957 Feb 1957 from J an 1957 Feb 1957 from Feb 1956 City and item February 1957 Feb 1957 from Jan 1957 Feb 1957 from Feb 1956 PAMPA (pop. 20,448r) SAN ANGELO (pop. 62,359r) Retail sales Retail sales ................................................. . 16 Automotive stores ................................. . -19 + 22 Furniture and household Postal receipts ............................................ $ 16,306 -35 + 12 appliance stores ................................. . + 9 8 Building permits, less federal contracts $ 222,610 7 -33 Lumber, building material, and Bank debits (thousands ) .......................... $ 18,375 5 + 22 hardware stores ............... . 5 End-of-month deposits (thousands))....$ 24,358 + 3 + 13 Postal receipts ... ············-···$ 49,247 -35 + 14 Annual rate of deposit turnover ............. . 9.2 4 + 10 Building permits, less federal contracts $ 574,965 -83 + 2 Bank debits (thousands) ........................ $ 42,728 - 9 + 5 PARIS (pop. 21,643) Retail sales Automotive stores ................. . + 22 + 14 E nd-of-month deposits (thousands) t ..$ Annual rate of deposit turnover ........... . Employment ............................................... . 47,270 11.0 22,750 + 3 -10 •• + 2 + •• Apparel stores ......... . -26 9 Manufacturing employment ............... . 2,790 + Lumber, building material, Percent unemployed ................................ . 5.1 4 - 6 and hardware stores .......................... Postal receipts ........................................... $ Building permits, less federal contracts $ Bank debits (thousands) .......................... $ End-of-month deposits (thousands) t ....$ Annual rate of deposit turnover............. . 13,591 98,445 14,120 14,743 10.9 + 33 + 27 + 86 4 9 6 + 8 -39 + 12 -1 + 10 SAN ANTONIO (pop. 449,52lu) Retail sales ................................ . Apparel stores ........................ . Automotive stores Drug stores ............................... . Eating and drink places ......... . -5 -15 -7 -3 -22 -2 -12 3 + 1 -3 PASADENA (pop. 22,483) P ostal receipts ............................................ $ 21,541 -48 -25 F lorists ...................................... . Food stores Furniture and household + 30 -1 + 10 •• Building permits, less federal contracts $ Employment (area) ................................. . Manufacturing employment (area) .. 620,787 418,000 93,500 15 •• •• -49 + 7 + 8 appliance stores Gasoline and service stations ........... . General merchandise stores ............. . -16 + Percent unemployed (area) ................... . 3.6 + 3 + 9 Lumber, building material, and PHARR (pop. 8,690) hardware stores ................ . Postal receipts ........................................... $ 506,533 + 10 -21 + 18 + 1 Postal receipts .......................................... . $ 4,445 -34 - 8 Building permits, Jess federal contracts $ 2,938,998 -39 -71 Building permits, less federal contracts $ Bank debits (thousands) ........................$ 78,760 3,457 + 89 16 + 96 13 Bank debits (thousands) ..........................$ End-of-month deposits (thousands)t ..$ 472,610 340,367 -12 •• + 5 End-of-month deposits (thousands ) t ..$ 3,503 11 14 Annual rate of deposit turnover 16.7 -10 + Annual rate of deposit turnover ........... . 11.1 15 Employment ...... ........................ Manufacturing employment ................ 186,100 23,425 •• + 2 + 3 PLAINVIEW (pop. 14,044) Percent unemployed ...... ........................ 5.6 + 10 + Retail sales Apparel stores ....................................... . Automotive stores ................................. . Postal receipts ............................................ $ Building permits, less federal contracts $ Bank debits (thousands ) ........................ $ End-of-month deposits (thousands )t ..$ 12,026 170,000 21,143 25,900 -31 + 18 -40 + 158 33 + 20 + 95 + 15 + 118 SAN MARCOS (pop. 9,980) Postal receipts ............................................$ Building permits, less federal contracts $ Bank debits (thousands) ........................$ End-of-month deposits (thousands ) t ..$ Annual rate of deposit turnover ....... 7, 396 8,635 5,931 7,728 9.2 -35 -34 7 + 7 -33 -84 -3 -18 + 18 Annual rate of deposit turnover ........... . 19:6 PORT ARTHUR (pop. 82,150u) Retail sales ................................................ . Apparel stores ...................................... . Automotive stores ...... . Eating and drinking places................. . + 5 -22 + 20 5 + 12 -6 + 30 + 21 SEGUIN (pop. 14,000r) Postal r eceipts ...........................................$ Building permits, less federal contracts $ Bank debits (thousands) ........................ $ End-of-month deposits (thousands) t ..$ Annual rate of deposit turnover ........... . 7,019 48,840 6,782 15,064 5.4 -38 + 41 -17 •• -14 -1 -71 + 3 4 + 8 Food stores ............................................ . Furniture and household 3 + 6 SHERMAN (pop. 25,855r) Retail sales ................... . -12­ •• appliance stores ................................ . General merchandise stores ............... . Lumber, building material, and 6 14 17 -20 Apparel stores ................................. . Lumber, building material, and hardware stores ............................ . -23 -39 -10 -44 hardware stores ................................. . Postal receipts ··················-·······················$ Building permits, Jess federal contracts$ 61,620 369,508 + 12 •• 6 + 21 + 65 + 59 Postal receipts ............................................ $ Building permits, Jess federal contracts $ 20,455 436,720 -42 -54 -14 +227 Bank debits (thousands) ........................ $ End-of-month deposits (thousands ) t ..$ Annual rate of deposit turnover ......... . Employment (area) ................................. . Manufacturing employment (area) .. Percent unemployed (area) ................... . 59,666 44,821! 16.1 85,200 29,230 5.2 + 5 1 5 •• •• 16 + 14 •• + 16 + 3 + 10 5 SLATON (pop. 5,036) Postal receipts ........................................... $ Building permits, less federal contracts $ Bank debits (thousands) ........................$ End-of-month deposits (thousands) t ..$ Annual rate of deposit turnover ........... . 2,675 27,580 2,476 4,415 6.5 -42 +573 -26 -6 -23 + 6 +117 + 9 + 9 + 3 ROCKDALE (pop. 4,550r) Postal rec