Full text of Commercial and Financial Chronicle : April 14, 1960, Vol. 191, No. 5942

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Simpson, Thacher & Bartlett

and FINANCIAL
„■

.

V

T

^

ESTABLISHED 1839

Volume

NewYork 7, N. Y.,

AS WE SEE IT

Editorial
If the

Reg. U. S. Pat. Office

Number 5942

191

national elections ; in this year of

our

The

.

Lord

Administration next year which will have little
intention of

making

or

far

as

international economist

to

His

countries

are

his

in

to have

seems

an

urged

implement the Fund's

Article

and

VIII

by

for

honor

which

prevailed

general

day before a group of Repub¬
by some to have laid a sort of
basis for the Republican
campaign arguments this sum¬
mer and autumn. If
so, the pleas of his party for support
will be
extraordinarily void -ibfapy thii^^
which is not always borne out
by the facts. It may or

each

of

office. But the
nothing to in¬
dicate what
specific assurances the party or its candidate
is prepared to
give the voter that policies henceforth
will be more in
keeping with the true American spirit
and tradition. Some of the
President's generalities-—if
had not

often in

industrial

or

(Continued

on page

tion,

in

revaluation
had

all

almost

countries.

rumors

mark

about
of

German

circulate,

27)

State and

either

STATE

and

appear

a

reliance

of

the

on

pages

which

have

>'•:

led

to

appreciable

any

in¬

help
prices have
of the primary

even where

Moreover, in

many

being taken to over¬
inflationary pressures, and in that way to
are

make the best use of the resources that are avail¬
able for development.
The improvements which have taken
place have,
of course, been

primarily due to the determined

actions

of

national

individual

countries.

Monetary Fund

But

(Continued

the

Inter¬

on page

31)

State,

Lester, Ryons
623 So. Hope Street, Los

Co.

&

Angeles 17,

California

Members Pacific Coast

THE FIRST NATIONAL CITY BANK

Burnham and
MEMBERS NEW

YORK ANO

15 BROAD STREET,

Company

AMERICAN STOCK

NEW YORK 5,

N.Y.

•

Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beach,
Oceanside, Pasadena, Pomona, Redlands,
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier
Inquiries Invited

OF NEW YORK

Dl 4-1400

Bond Dept.

Net
To

Markets

New

York

THE
/

canadian

1832;

;;V
We

securities

Members

Block

on

Correspondent

Southern

Bond

—

Department
THE

Chase Manhattan
: bank

Pershing & Co.

ROYAL BANK

OF
ESTABLISHED

Notes

HAnover 2-6000

Maintained

Dealers, Banks and Brokers

T. L.Watson & Co.

Bonds and

California Securities

Teletype: NY 1-708

Active

Exchange
Exchange
Exchange

in

EXCHANGES

TELETYPE NY 1-2262

COBURNHAM

Housing

Agency

Associate Member American Stock

SECURITIES

Underwriter
dealer

not

marketing of products,

23, 24, 25 and 26.

Offices

CABLE:

I:

pay¬

activity has continued

in the average level of raw material
prices.
It seems, however, that the volume of interna¬
tional trade is again rising and this should

Per Jacobsson

BONDS

trust company

Distributor

in

high level in these and other industrialized
but—it should be noted—under condi¬

come

new york

||

discrimination

on

producing countries steps

MUNICIPAL

AND

INVESTMENT

;(

The

much

their

not risen much.

UNDERWRITERS

HAnover 2-3700

New York 15

these

crease

*

\

of

and trade. Economic

Members New York Stock

30 Broad Street

World.

countries,

DISTRIBUTORS

bond department

convertibility moves
that the recovery would

and Public

Municipal

bank

the
or

very

reserves

Housing,

chemical

that

successful,

Municipal

Securities
telephone:

parts of the
of a recovery

activity; but it could not yet be taken

Government,

Public

other

signs

Candid photos taken at the 34th Annual Dinner of the New

Dealers Association

Security

in

distinct

substantially increased, and they have

tions

possible

to

coun¬

been

on

the

the

begun

in

more

have

reduced

addi¬

In
a

met

we

countries

ments

and, together with other factors, ushered in a
period of acute tension in the foreign exchange
markets of a great many countries.
At my next appearance before this Council in

PICTURES IN THIS ISSUE:
York

boom

countries

were

around the

monetary

crisis, had not yet
been
overcome;
at the same
time the balance of payments
position of many countries was
affected by the
intense eco¬
nomic

when

end of 1958 have been crowned with success.

that

of the Suez

himself is not to be a candidate for
any
fact remains that there is as

such statements

improvement

taken place in the mone¬
tary field.
In April 1957, the strain, es¬
pecially on sterling as a result

maynot be natural that the President did not grow more
specific and forward looking in his remarks, since he

yet little

the

1959

Now, in April 1960, we can feel satisfied that
the steps taken by the European countries at the

has

is believed

granted

countries

conditions

on

same

continue; and it was not at all clear how these
developments would affect the primary producing

Managing Director of the International Mone¬
tary Fund. I may perhaps take this opportunity to

these occasions, in order to in¬

women

few

a

There

would prove

the

April

At the end of 1958, 14 European

in economic

as

dicate

quite

world.

requires practices inappropriate to inflationary periods.

recall

But, at the

tries had established the external
convertibility of
their currencies, and similar steps had been taken

to appear before the Economic and Social Council

worse.

later, in

year

reassuring.

primary commodities

the fourth time that I have had the

to

were increasing signs of a recession
industrial countries, and considerable con¬
was felt about the general liquidity position

A

concludes that
a
relatively stable price
provides the most reliable basis for sustained growth

This is

exchange markets.

taken

fair degree

a

Mexico City, the general situation was much

Jacobsson

level

to restore

of the world.

part of their aid program to underdeveloped countries.

Mr.

been

had

steps

the

cern

non-inflationary situation. Developed

to

effective

time, there

obser¬

report highlights past developments,

and to include less restrictions against
as

with

1958,

of calm in the

complacency and prescribes line of attack

against problems in

any

concurs

September that world inflation

end.

an

cautions against

no

way, and the democratic Democratic hopefuls, so
the Presidential race is concerned, have been far

U. S.

eliminate the tension and

come

The President the other

lican

April

vation of last

much

even

By Per Jacobsson,*, Managing Director of the
International Monetary Fund, Washington, D. C.
Renowned

engrossed in the ordinary garden variety of
political maneuvering to give any solid basis for sup¬
posing that they—any of them—have developed a clear
insight into the real needs of the country. The general
impression given by Democratic members of Congress,
who expect to stand for reelection later this
year, is
too

Copy

a

Now That Inflation Has Subsided

sharp change from the paths
carved out by the New Deal. Neither the President nor
candidate Nixon has as yet shown any disposition to
alter the course of government policies in any very mean¬

ingful

Price 50 Cents

•

Proper Solution to Problems

are

going to offer the people of this country any great op¬
portunity to express their preferences on basic issues, or
any great hope of a real beginning of a return to tradi¬
tional American programs and policies, evidence of the
fact should by now be making its appearance. Little or
no indication of anything of the sort is now visible, how¬
ever, and unless the rank and file of the voters somehow
find a way to make an effective demand for something
of the sort, we are likely once more to inaugurate an

Thursday, April 14, 1960

CANADA
Rights

'

offer

to

buy

the

FOR CALIFORNIA'S

above

rights

which expire on June
27, 1960 at
the current market.

Inquiries Invited

CIVIC

IMPROVEMENT

Direct Private Wires to

New York Stock

first

Exchange

Commission Orders Executed On All

,

Canadian

American

Stock Exchange

<&OUthW€4t
company




CANADIAN

*

t

25 BROAD STREET

^

Exchanges

(Teletype

NY 1-2270

'

'

AND TORONTO

Goodbody & Co.

NEW YORK 4, N. Y.

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

•

1 NORTH LA SALLE ST.

2 BROADWAY

PERTH AMBOY
•

NEW YORK -;.A

-

Toronto, Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax

DEPARTMENT

DIRECT WIRES TO MONTREAL

.

/>

*

-

CHICAGO

Dominion Securities
Grpokation ;
Associate Member American Stock

40

Exchange

MUNICIPAL BOND DEPARTMENT

Bank

Exchange PJace, New York 5, N. Y.

Tel. WHitehall 4-8161

■

Tele. NY 1-702-3
.

of

America

N.T. A S. A.

San Francisco

Los

Ange/es

y

'

,v

2

For Banks, Brokers, Dealers

only

If it's Over-the-Counter

The Security
in the investment and

be

can

the following years. It
reported that the re¬
search
and
development budget
has been increased to $800,000 for
has

Partner, Hoppin Bros. & Co.

Speed

New York City

Members New York Stock Exchange

Experience

American Chicle

Nationwide Wire

System

Primary Markets in

more

for

managed

prove

New York Hanseatic

t

Established

several months.

Associate Member
American Stock Exchange

120

Broadway, New York 5

WOrth

Teletype NY 1-40

4-2300
BOSTON

to

FRANCISCO

SAN

•

Wires

Private

CHICAGO

•

PHILADELPHIA

Principal Cities

S. WEINBERG,
GROSSMAN
& CO.

INC.

Members

N.

7.

Security

Dealers Asfu

Bids

on

__

9

Phone:

WHitehall

chased

"rights," stock divi¬
earnings have

on

dends and split-ups,

Exchange Place, New York 5

40

has

common

split three times, the last
being two-for-one in December,
1958.
Adjusted
for
stock
pur¬

' "s&im** '/.

___

The

twice.

been

(Active and Inactive Issues)

averaged $2.31
last

3-7830

Teletype No. NY 1-2762

ten

dends

years

the

averaged $1.53
period. Thus,
average payout has

for

the

ten-year
66.2% of

the

been

million in

some

in

reach

$73 million this year.

Earn¬

expected

are

were

in

1958.

The

Life Insurance Co. of Va.

Commonwealth Natural Gas

million in

to

share

management
stockholders
at

the

meeting
ous

on

to

reported
the

annual

March 22 that for vari¬
it

reasons

difficult

was

LYNCHBURG, VA.
LD 39

TWX LY 77

—5-2527—

Private

Wire

to

York

New

City

racy

year.

the earnings for the entire
For the first quarter of 1980

earnings are expected to be 800
per
share.
Therefore, I believe

CANADIAN INDUSTRYHave

been considering in¬
vestment in the expanding econ¬
omy of Canada? Many investors
have. Canada is the second larg¬
est country in the world, and its
riches and industrial potential
are just beginning to be tapped.
For 47 years, Nesbitt, Thomson
lias been pioneering the develop¬
ment and financing of new indus¬
try in Canada. Through a network
of

you

investment

across

offices

dends

year

has

Based

the

upon

sheet,
the
position is

type of investment in

municipal

or

stocks—or if
on

Canada—

corporate
you

any

want

bonds,

informa¬

Canadian

investments,
Nesbitt, Thomson and Company
will be

glad to assist

you.

NESBITT, THOMSON
AND

COMPANY, INC.

25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4
BOSTON 10




per

1959

company's

I

tr

everyday necessity

an

millions. "Darling,
the hair-dresser today"

at

was

is

natural

as

mention

as

in

weather

balance

exceptionally

rities

at

cost, total

more

strong.
1.7

Total

times total

There

are

no

1

bank loans.

Brand

3%

secu¬

than

times all current liabilities.
are

participate

to

managed

in

company.

of

is

Latz

growth

a

glamorous industry
tied directly to the expansion of
America's

"teen-age"

population.
is

e s

long-

chewing

line

to

the

in

143

sc

attered

cities

is

costs

of

37

among

the
of

8

tomers

as

a

of

back

to

come

&

them

(five million, at
back again and again

glamour. Each year, Seligman
Latz's

ally

business

takes

gradu¬

a

larger

share of the public's
spendable income which itself is
rising steadily.
of

Seligman & Latz is the king-pin
the beauty salon
world, and a

$1.62

no

circumstances
an

offer

to

only

to

is

the
con¬

earned

share last year and today
sells at but 14 despite the likeli¬
hood of substantial further
gains,

to

per

be construed

buy,

any

as an

of

such

be
con¬

has

defy

(in

usage)

invocations

exactly

they

as

do

'Sidney
K.

Seligman

Latz, who

in

1911,

have

Yamaichi

Securities
of New

Company

York, Inc.

Affiliate

of

Yamaichi Securities Co.f Ltd.

Tokyo, Japan
Brokers

111

&

Investment Bankers

Broadway, N. Y. 6 COrtlandt 7-5680

Consumer

Finance

Companies
%le

seek

ment
or

for retail off-street

blocks

of

place¬
preferred

inactive

stocks

common

of

dividend-

paying small-loan companies, sales
finance companies, or factors.

ALBERT J.CAPLAN &C0.
Phila.-Balto.

Members:
Boston

&

Pitts.

1516 LOCUST

Stock

Stock Exch.

Exchange
(Assoc.)

ST., PHILA. 2, PA.

salon

is

stores
are

salon

be

the

the

with

the

a

operation

of

highly

the
in

de¬

by

STREET

SUGAR
Raw

—

Refined

Liquid

—

Exports—Imports—Futures

these

prefer

operated

WALL

NEW YORK 5, N. Y.

spe¬

large

which

desired

99

Selig¬
than

a

business,

services

of

more

LAMBORN & CO., Inc.

the

running

been

Because

beauty

Each

for

Mr.

still its chief

are

now

Latz

and

founded

officers.

persons

to

write

the present corporate
Seligman & Latz dates

since before the First World War.

&

or

tobacco, liquor or

1953, the company itself
operated
successfully
ever

their
DIgby 4-2727

inde¬

an

specialist (i.e., Seligman
Latz), which thus enjoys the

America's

each year—not casually or to
window-shop but to buy NOW.
They pay their bills in cash and
of

Call

boom.

a

form

offer

security referred

to
to

sell,

or

herein J

of

association

proudest

All of the

retail

with

names.

company's operations

conducted

are

on

leased

'"Of,

premises,

the

average lease having an ini¬
tial term of five years. If success¬

ful,

association

an

store
year.

be

is

renewed

with
for

leases
sales

giver)

a

after

year

Otherwise, the operation

discontinued

with

especially inasmuch
are

based

volume.

little

can

loss,

the

salon

primarily

upon

The

as

has
employees
compensation,
too,
is
geared largely to the volume of
business they handle. Seligman &

approximately

company

5,000

whose

Latz thus possesses that inestima¬
ble corporate

advantage of flexi¬

bility

in

its

fixed

costs

under

conditions of declining volume.
Not

that

sales

show

signs
of actually going down. Quite the
contrary — personal service is a
any

Over-the-Counter

Quotation Services
for 47 Years

frequently overlooked growth in¬
dustry./

In

population

by

women

addition

to

normal

increase, expenditures
for

grooming,

National Quotation Bureau

toilet¬

and cosmetics has
leapt ahead
recent years—witness the ex¬

Incorporated

ries

in

solicitation of

times

prestige

Morton Globus

cus¬

least)

might

information

current

these

downturn.

moralists'

troop

most

For

that

things toi go in

use

as

which

Though

in

for

the

the

bad

&

million

woman

branch offices

pendent

Canada. Some

items

(This is under

to

items

partment

states, Mexico
Dominion

like

costs

analogy

an

cialized

usually are yield approaches 6%,
heavy and have a tendency to re¬
As with numerous other
prod¬
tard earnings in the year of in¬
ucts
and
services,
the
Beauty
troduction,
although
sales
and Salon
has
evolved
from
a
earnings tend to increase mate¬
"prestige" affair for the wealthy
new

in

a

and

de¬

Nothing

indicates

economic

of

decade.

"Dentyne
Spearmint," and has been adding
substantially to sales and earnings. the thoughtful investor will "stop,
and
Development
and
listen."
promotional look
The
current
gum

times

Perhaps

man

located

stores

service

among the last

company

than 250

more

this

of

"coiffure."

evidence

personal
are

eight

with

company

our

stocks

important to a woman
the way she looks, and all

executive

tablished

company whose shares were

newcomer

to

concern

ful

to

japanese

more

Edwin

as

A

persistence
the

is

success-

a

such well recently made available
"Chiclets," "Den- general public. When it
tyne," "Beeman's," "Clorets," and sidered that this concern
"Rolaids."

mate. the

Mr.

It

include

names

ones

"over-

and

female

35"

Mobile, Ala.
Direct wires

beauty salon of¬
the cutting

votion

in

a

New Orleans, La. - Birmingham. Ala

hair,

Seligman & Lafz, Inc.
&

6, N. Y.

of

against them, and continue to sell

President, Globus, Inc., New York City

in

Exchange

NY 1-1557

include

Services

all

Seligman

American Stock

the

of

number

vast

a

What does the

fer?

gasoline,

MORTON GLOBUS

company

Members New York Stock Exchange

American homes.

sumer

share

financial

Cash and U. S. Government

known

in

to

woman

drawn

the cash divi¬

34-year record of unin¬
terrupted dividend payments.

liabilities.

interested

reason¬

a

current

Canada's finan¬

t

for the average

the

liberal

a

conceivably could be in¬
creased to $2.25 per share. Ameri¬

Canada, into the U. S. and

touch with

of

seems

paid totaled $2.00

assets

con¬

<

HAnover 2-0700

growth of this exceptionally well

which

can

average

earnings.

wishing

mated earnings are realized an in¬
crease
in
the
dividend
may
be

expected. Last

ten-year

Allowing for
dividend, the yield is 4.2%

suspect that if these esti¬

current

cial pulse.
If you are

tion

to

view

policy, it

extending

Europe, the Company is in
stant

able

In

average

around 48 which is 13.9 times 1960

estimated

that earnings of $3.35 to $3.50 per
would be a reasonable ex¬

pectation.

HOW TO EXPAND WITH

,

Members

price-earnings ratio is 13.0 times. than
Currently
the
stock
is
selling available

share

dividend

The

earnings.

to

forecast with any degree of accu¬

STRADER and COMPANY, Inc.

the

year,

earn¬

equal to $3.21 per share
1959 compared with $2.95 per

ings

iassett Furniture Industries

average

1950 to $68.7

and

1959

this

for

Sales have grown from $35.1

ings.

American Furniture

share

price is 14V2 times those estimated

per share over the a $2.00
and the cash divi¬ which is attractive for the investor

have

paid

share

per

Trading Interest In

Sthner,Rouse8Co.

City, (rage £)

—

occasions and declared stock divi¬

Odd Lots

^Bought—Sold—Quoted

Morton

—

styling and permanent
c o m p a nies,
waving, dyeing and tinting, elec¬
American is
trolysis, and manicuring. Note es¬
the oldest and
pecially ■ the
item
"dyeing and
expected to be in operation by the
now
the sec¬
tinting." Restricted a generation
middle of 1960.
The increase in
ond largest
ago to theatre folk and the like,
the youth population in the U. S.
company
in
today literally everyone
dyes
and further expansion of foreign
the business.
their hair
the once-laughed-at
business in Canada, Mexico and
Starting
with
question of "Who has the Toni"?
O. Benedict Zeman
Venezuela should prove favorable
a
capital of
is omnipresent. What's more, once
long-term growth factors.
60,000 $100 par
a
woman
dyes her hair, it stays
value common shares and 30,000
The
1959 price
range for the dyed. Or rather, the dye or tint>
$100 par value preferred shares, common stock was-553/4 high, 44% is continually changed to keep
the
capitalization today consists low. On the average price of 50 the hair alluring and of varied
only of 2,860,005 shares of no par the shares sold for 15% times 1959 shade. And once hooked, does a
common.
earnings. This year the high, thus woman forsake the dye after a
Since
inception the
company far, is 54 Vs and the low 46 % with few months and go back to her
has given "rights" to the common an average of 50.3125.- Based on natural hair? Just ask her!
stockholders
on
three
different estimated earnings of $3.45 per
Investors should not underesti¬
dends

BONDS

standstill for

operation near the end of Febru¬
ary
this year and is capable of
meeting Peruvian requirements. A
new factory at Toronto, Canada, is

gum

New York

The company has

factory at Lima which went into

a

Latz, Inc.

&

in

activities

and

there have been at a

con-

chewing

1920

Cuba

in

Seligman

19 Rector St., New York

100

than

&

V

products are
countries.

its

and

more

vestment

several

of

in

factories

has

company

countries

; :

Louisiana Securities

Co., New York City (Page 2)

which

being developed
should prove interesting. ,
11

new

some

products
The

Benedict

Partner, Hoppin Bros.

Zeman,

Thursday, April 14, 1960

Alabama &

In

last year.

are

President
Pritchard
pointed out that there was no in¬

consolidation

Corporation,

there

Recently

Originating in
a

$600,000

area

sold

very

as

from

American

factor,

eresting.

1899

1960

this

a

should

Chicle

n

having

company

growth

good

i

looking

high quality stock of a very

a

well

OTC Issues

than 400

is

who

investor

the

For

Co.

been

.

Selections

American Chicle Co.—O.

in

rially

O. BENEDICT ZEMAN

of

sure

.

Participants and

Their

particular security.

.

Week's

This
Forum

each week, a different group of

participate and give their reasons for favoring a

Call "HANSEATIC"
You

I Like Best...

experts
advisory field from all sections of the country

A continuous forum in which,

...

Chronicle

Commercial and Financial

The

(1618)

plosive sales growth of such

Established 1913

46 Front Street

corn-

CHICAGO

Continued

on

page

27

New York 4,
SAN

N. Y.

FRANCISCO

Number 5942

191

Volume

w

.

.

The Commercial and Financial
Chronicle

(1619)

3

The Coming Bull Market
In Insurance Stocks
Shelby Cullom Davis,* Managing Partner, Shelby Cullom

By

&

ullCHTMIfl

CONTENTS

Davis

A

Articles and News

slumber of insurance stocks is ending according to
Mr. Davis who pinpoints an impressive array of reasons why they. f
"are ready to catch fire again." The writer indicates why, relatively
speaking, he believes insurance shares will outperform other stocks,
rise absolutely if the bear market is contained, and fall less if the
market runs rampant. The arguments of the skeptics

swered and examples of fire, casualty and life companies

are

takes a brave—or

Subsided—Per

Jacobsson__

an-

•

-

liance

—Ira U.

Philadelphia's

widely

justed earnings last year of $2.14
compared with
$0.07. v This
list
could be expanded many times.

others
have fallen in

these

line. But, par-

*

heart
fair

never won

of

stock

is

averages

the

speaking—and

proclaiming just as eloquently as
the Dow Theory—that insurance
stocks are acting better than the
market. Most, indeed, have pushed
well above their August 3, 1959
prices which marked the peak of
Industrials

until

the abortive January 5,1960

break

the

Dow

Jones

through.

,

would

be

10-11

at

times

last

it is

been

process,

each

year.

om

chips" total adjusted earnings.
than ;the

will

grades"

average on

they

and close to 5%

(1)

longer

matter of

a

much

return

is.less, of

are

is

at

heavy

''blue

and

Hartford

factual. For
example, among the
chips," Hertford Fire had
adjusted earnings last year
of $3.02
compared with $2.35 in
1958. Continental
Casualty's total
adjusted earnings rose to
$4.86
from $3.18. These
figures, to be
sure, include investment income,
hut since
investment'income in¬
a

5 %

its

worth

many years

•

discounts,

Home,

much

as

Immediate Months Ahead Will Be
Good, But No Boom!

45

'

»r>

v <

Great

American

Springfield. Even "blue chip"
Fire can be purchased
of profitable

Such

un¬

v

;

See It

*\.A:

(Editorial)
•

*'

Bank

and

''*■? r?\-lsV

•••

Insurance

Stocks.

.'__

V*.

x

V

lamesbury Corp.

31

_*

_

Systron-Donner Corp.*

Coming Events in the Investment Field

48

BarChris
Dealer-Broker Investment Recommendations

Einzig: "Denationalization's Impact

Construction

8

Bowling Corp. of America
British

on

Securities"—-

13

*Prospectus
From Washington Ahead

of the

Mutual

______T

News About Banks and Bankers
Wilfred

Our

Governments

Request

Singer, Bean

47

Funds

Observations—A.

on

News—Carlisle Bargeron____ 11.

Indications of Current Business
Activity

mackie,

28

&

18

HA 2-9000

inc.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 14844

May

4

.___

Direct Wires to

Reporter

on

Public

Utility

22

Chicago

22

San Francisco

Cleveland
Dallas
Philadelphia

Los Angeles

Securities

Securities Now in Registration

Prospective
Security

Security

Salesman's

St. Louis

34

Offerings

The Market

/

.

.

.

and

43

Corner.:

45

Copymation
■

You—By Wallace Streete

4

...

*'•

'

'

i

16

The Security I Like Best

writing should

continue.

This, is

improvement,

The State of Trade and

/

*

•

ITI Electronics

2

Industry

4

on

page

Spencer Trask & Co.
1868

Washington and You

48

FINANCIAL

Twice Weekly

Copyright 1960 by William

CHRONICLE

DANA

B.

REctor

GEORGE
WILLIAM

ST., NEW YORK 4, N. Y.
TELETYPE NY 1-5

Schenectady

Glens Falls

Worcester

J.

r

COMPANY, Publishers

Reentered

MORRISSEY, Editor

D.

SEIBERT,

President

SEIBERT, Vice-President

Thursday, April

14,

as

second-class

Office:
3,

111.

SIMMONS, RUBIN

Febru¬

&

135 South La Salle St.,
(Telephone STate 2-0613).

CO., INC.

Subscription Rates
Subscriptions in United States, U.
Possessions, Territories and Members
Pan-American
Dominion

Underwriters and Distributors
S.

Complete Trading Facilities

of

'

Union,

$65.00

of

Canada,
Other Countries, $72.00

per

$68.00
per

year;

per

i

in

year;

TRADING DEPT. PHONE:

year.

1960

Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.)
Other

matter

1942, at the post office at New
York, N. Y., under the Act of March
8, 1879.

-

Other

Every

Chicago

Dana

25,

Y.

2-9570 to 9576

DANA

B.

.Company
ary

Members New York Stock Exchange

Chicago

Big Apple Supermarkets

29

CLAUDE

HAnover 2-4300

6

whether it is slow

Continued

Founded

Transit Freeze Corp.

Tax-Exempt Bond Market—Donald D. Mackey

25 Park Place, New York 7, N.




'

Cover

\:\a '■ :;:Vv•:W V*'-V'V;•

Reg. U. S. Patent Office

Newark

DIgby 4-4970

.V.:

con¬

last long.

PREFERRED STOCKS

Nashville

Broadway, New York 5

Struthers Well

As We
if

The COMMERCIAL and

Boston

In t-

less than its net worth despite

long record

Group's

Albany

.

Regular Features

WILLIAM

TELEPHONE

39

as

probably the crux of the matter.
Underwriting cycles have gener¬
ally lasted five years from valley
to peak—but not always. " Much
depends upon the rapidity of the

under¬

have specialized in

J.F.Reilly&Co.,Inc.
19

(3) The improvement in under¬

year,

we

25 BROAD

20

'

FNMA to Offer New Type of
Short-Term Paper..

Published

For

Paarlberg_____

most

The Crux of the Matter

foreman's Fund of San Francisco
had total
adjusted
earnings of
$4.78 compared
with $2.64 in
1958;

Springfield-Monarch

on

ditions seldom

writing. Among the "good grades"

the

net

derwriting and growth.

follows that the lion's share of
in

;

to

insurance stocks are still available

no

speculation. It

lies

1.7% and

course

,

relation

total

improvement

Reliance

on

American. For

produced yield?

45%

the

on

.

figures

7-10%

4V2%

as

2.3% respectively. But when have
"blue chips" in any category ever

is

cases
generally
it

Industrial

.

'

This

obtain better

Jones

"blue chips,", such as Continental
Casualty and * Hartford Fire the

In

Underwriting
improving.

as

can
.

most insurance stocks

and

absolutely if the- bear
market in stocks is contained; that
they will fall less if the bear mar¬
ket runs
rampant.
Here are our

sharply

one

Dow

out¬

rise

Reasons for Optimism

16

Challenge of the Soviet Union

Don

,

;

r

electronics

crown aluminum

Babson

15 times for the "blue

or

Yieldwise

speaking of relatives

reasons, five in number.

—Hon.

average

continue if stocks drop 100 points
as in
1957 even taxes our credu¬
will

cohu

Rico Today
15

Prospects—Roger W.

.

Investment in¬

quietly rising while
generally have been not so
quietly falling. But that this could

stocks

Puerto

is

come earnings would seem to
jus¬
tify, far higher price times earn¬
ings ratios by themselves alone
that
the. 10-11
for. the /"good

:

stocks ;>that

of

❖

casualty insurance companies
rises annually because of the com-

stocks

other

botany mills

and

less

pbunding

insurance

r

america

12

Environment

The Economic

fact

a

of
10

a

and warmer"—because

7-f©%

perform

Financial

1960 U. S. Crop

that the investment income of fire

stocks will stage an ab¬
price rise in face of a dev¬
astating bear market in stocks
generally. So far, during the past
eight months,
insurance - stocks

—that

9

—Rafael Pico

cyclical. We should
say "stable to rising" in the lan¬
guage of the weather man, "fair

surance

are

The

year's

investment income which

solute

We

Gehman

—Robert W. Mayer

times

stable and not

than realistic to maintain that in¬

lity.

associates

Investment Opportunities in the
Bond Market

fairly,

,

;-

Stocks"?: We

have

are

large part, from
three-quarters of
last
year's earnings among the
stocks mentioned, is still derived
from

acoustica

7

—Gabriel Hauge

cheaply, priced. And

earnings. And
two-thirds
to

Why the "Bull Market in Insur¬
ance

price

selling

4-6551

bowling corp.

last year's earnings, surely not ex¬
orbitant. Most of the others are

insurance

Funds—John T. Masten

Uses, Misuses and Abuses of Our
Money and Credit

Continental Casualty and Hartford
Fire are selling around 15 times

Shelby Cullom Davis

profits. Besides,
the
moving finger

of Bank

—Clayton

earnings ratios
are based upon last
year's earnings
and not in year X, "into the pale
blue yonder" which has fascinated
so
many
industrials. Blue chips

aphrasing,
faint

Insurance stocks

if not indeed

Atne and

Dept.

5

4

Significance of the Revised Industrial
Production Index

earnings

Jersey had total ad¬

(2)

Securities

STREET, NEW YORK

Quality Product Producer

Cobleigh

Management

to $5.12 from $2.42 and Amer¬
ican of New

spected publi¬
cations as the
New
York;
Herald
Trib-

WALL

J

of

rose

re¬

3

Telephone: WHitehall

market;
and
such
bull

Obsolete
99

v

climbed to $2.90 from
$2.04; Great American's soared to

year

—

99 Wall!

______Cover

.—Shelby Cullom Davis..

;

Stocks" when the Dow $3.88 from $0.61. And in > the
Theorists just a month ago "yield" category, returning 4-5%,
Home's
total
adjusted
sounded the
earnings
shot up to $5.03 from
death knell of
$1.98; Re¬
ten

at

.

surance

the

Has

The Coming Bull Market in
Insurance Stocks

rash—man to earnings

about the "Bull Market in In¬

"Hello, cash"

The Proper Solution to
Problems Now That Inflation

A Sound Electronics
and

talk

COMPANY

:

cited

are

to buttress arguments made.

It

p.,

Say "BYE BYE OBSOLETES"...

Page

Past few years

bear

N

Co., New York City

Bank

$45.00

and
per

rate

Quotation

year.

Note—On
the

Publications
Record

(Foreign

account

of .the

—

Monthly,

Postage

extra).

fluctuations

of

in

foreign

exchange,
remittances
for
subscriptions
and
advertisements

must

made

be

in

New

York funds.

.

56

WHITEHALL 4-6627

BEAVER

STREET, N. Y. 4,

Telephone: WHitehall 4-7650
Teletypes:

NY

1-4581-2

The Commercial and
4

Financial Chronicle

.

.

Thursday, April 14, 1960

.

(1620)
*.■■■-

OBSERVATIONS...

represents another typical' bone of
contention among the cognoscenti
—some
of the unorthodox devo¬

1

A. WILFRED MAY

*

«

^ ■

-»"»r>

v

m

Electric Output

Carloadings

do away with those
"antediluvian" leaders of yester¬

tees daring to

BY

Steel Production

...

"

XllVy

Q'I'Q'f'P nf

DUX LO

Retail Trade

U1

Food Price Index
Auto

Production

year.

THOSE

SLIPPERY

SIGNALS
The

disagreement
practitioners over defi¬
interpretation of that

never-ending

among the

nition

and

most

popular

of

market-beating

systems, the Dow Theory, is actu¬

ally

their

unrealized

blessing.

First, it supplies the faithful with

ready

a

"out"

for

their

trusted

Theory when things go wrong. But
even
more
important: non-uni¬

formity among the players enables
them to avoid the reduction to fu¬

tility which would follow the con¬
centration of too big a crowd do¬

-

.

definition of

a

bear market on the

ing
any

Basically,

major top," followed by a definite
fall, et seq., was made on the au¬
thority of such Dow maestros as
Edmund W. Tabell, of Walston &

Co.,

and

Ralph

it

is the

easy

^U+'+:'V'■

"sell-

not

indicates that
business capital expenditures in
gazer at a
past-performance A chart, together 1960 will total $37 billion —up
with the alleged key to discover¬ 14% over 1959. This is almost
ing a future "trend," that makes exactly the same as in the pre¬
Dow following Iso popular.
vious record year, 1957. It should
be
noted, however, that prices
The Sun-Spot Seasonal, Repeathave risen somewhat since then.

buy-low"

high,

premises that the Averages must
the
first make a "clearly defined

Rotnem, former
President of the N. Y. Financial
The currently
precisely the same thing at Analysts Society.
same
time (indispensable to recognized
and most widelysystem is the existence of quoted,
as
Dow "High Priest,"

the

Commodity Price Index

interpretation
and properly correlated, give val¬ of the Dow gospel is advantageous
uable information to the chartist. both in, as we have pointed out
above, lessening undue crowding
D. H. MUDGE f
In
discussing
the
outlook
for now in ample supply. However
at the market "exits" and "en¬
capital spending in the present substantial outlays will increase
Bache & Co., ■ ,>;*Va-a''; ; ,v;' ': trances"; and also, in offering mis¬
for
certain
year, the Federal Reserve Bank capacity
standard
Palm Beach, Florida,
interpretation of the perfect, sys¬
of Chicago, in thfe'April issue of products, such as; tin plate, gai
March 31, 1960.
tem as an alibi when things go
1
sheet
and
"Business Conditions," comments vanized
cold
rolled
a:
Our summary of the Dow-ists' wrong.
sheet. These items have
as follows:..:',- •.
in

conflicts

The

ON

TRADE and INDUSTRY

Confusion

Benefits From

"A recent survey

mirage tempting
simple fluctuating

Credos

Performance

Relying rather

on

of

estimate

"This

future auto¬

matic repetition of Past Behavior,
no
matter
how
illogically,
is

and

plant

equipment outlays is based upon
reports of a large number of busi¬
ness
firms. It includes only do¬
mestic
expenditures
on
new

been
in adequate supply in
periods of
peak demand regardless of the in
dustry's large ingot capacity.

in

other cases,
new

or

outlays are needed for
improved products, such

the

as

aluminum

engines
and
in the auto
industry. But perhaps the largest
share of capital goods
outlays will
unitized body frames

be

used

to

cut

costs

quality.

or

improve

;

"How firm

are these
intentions'
venerated Sun Spot Theory —
Probably fairly firm according to
reasoning,
that
the
sig¬
agreement about
along
with
Seasonal
citations
of
past
New
experience.
orders for
nificant
equipment and construction which
up-side signals be re¬
the sacred creed is highlighted by
various types.
(A recent issue of are charged on the books of a industrial machinery and
ferred to as "highs" or "peaks"
contracts
the following communication from
a
popular Market Letter distrib¬ firm as a fixed asset. It does not awarded for commercial and
rather than "tops."
in¬
a reader:
uted by a leading Member Firm
dustrial construction
include
capital outlays of farmers,
continue
Mr. Russell based his "epochal"
contains apple-pie neat tables and
well
Dear Mr. May:
above
;
year-ago
levels.
home
A
pronouncement made on March 3 diagrams demonstrating that the nonprofit organizations,
owners or governments.
Chicago
consultant
on
This refers to your column of last that a bear market had been
factory
stock market—both as to seasons
location
states
"Plant and
that
his
March 24th issue, "Jammed Sig¬ started the previous July 8 (1959
equipment outlays
firm's
and the entire year—has tended
nals in That Numbers Game." Un¬ A. D.) on the basis of the follow¬
greatest
in
currently are equal to about 7 V2 % backlog is the
its
to repeat a similar pattern every
of all spending on goods and serv¬ history. Usually this firm's serv¬
less misprinted, there seems to be ing esoteric signals (graciously re¬
decade; that is, the general course
ices. But they constitute one of ices are retained a year or more
an
error
in the premise of your confirmed by him at this writing):
of stock prices in 1960 should re¬
the
most
volatile
segments
of before 'ground is broken' on new
statement, or else an argumen- "Following
the drop after the
peat that of 1950, 1940, 1930, etc.)
\
spending and bear close watching construction."
table, nonestablished report of fact. July 8 high for the industrials and
in evaluations of business trends.
In which case, conclusions later rails; which carried down to the
Enjoying Snob Appeal
Bank Clearings for Week Ended
reached
"During 1959, capital expendi¬
are,
you,
might say, industrials' September lows of
In
the
esoteric
"egg - heady"
April 9 Increased 9.4% Over
clouded.
tures rose nearly 7% from the re¬
616.45, and the rails' low of 146.65
-V■'v;'/X■ .<
category, and hence with "snob
Similar 1959 Period
in
November; and then a final appeal," are the mathematical duced level of 1958. This was
(1) Who says "a clearly defined
Bank Clearings this week will
advance
to
a
new
virtually
the
same
rise
as
recorded
'high'
(not
"wonder drugs" as moving aver¬
major top" has been made? Last
in
1955—the
first
year
of re¬ show an increase compared with
July? If so, that top was pene- 'top') on the Industrial Average ages, point-and-figure "work," and
a
year
1960 (still the like
ago. Preliminary figures
trated Jan. 4, 1960. And who says at 685:47- on Jan. >5,
(with its own brand covery from the 1954 recession.
"In March of 1956, the capital compiled by the "Chronicle" based
Jan. 4, 1960 was "a clearly defined A. D.), followed, again, by a new of "break-throughs" and
"triple
decline which carried both Aver¬
tops") -—and inclusion of fantasies expenditure survey projected a upon telegraphic advices from the
major top"? On.what authority?
22 %
increase in spending. Al¬ chief cities of the country, in¬
If the latter is a top, one cannot ages down to a. violation tof -<the as "flag formations," "shoulders,"
dicate-that for the week ended
fairly claim that the "subsequent previous lows—this finally regis¬ "sensitive motion" scales, "explo¬ though there were offsetting er¬
rally" will go higher or do so and tering the classic Bear Signal. sion points"—all offering glamor¬ rors for particular categories, this Saturday, April 9, clearings for
(Incidentally, this authoritative ous escape from the hard realistic total was realized almost exactly. all cities of the United States for
so, because no properly definable
The indicated rise announced in which
it
is
possible to obtain
rally
from
the
January-March blessing on this latest of the facts of investment life!
the spring of
typical lengthy intervals needed
break has as yet appeared.
1956 was greeted weekly clearings will be 9.4%
to discover what's been going on, THE INVESTOR ENGAGES with some
skepticism, not merely above those of the corresponding
I'm speaking strictly of the D. J.
surely substantiates our key in¬
because of its large size, but also week last year. Our
IN SELF-PROTECTION
preliminary
Industrial Average in the above
dictment, demonstrated in the his¬
because
there
was
considerable totals
stand
at
$25,436,136,111
remarks.
•
Sure enough, no time was lost by
torical
table
in
our
March
24
speculation at the time that a re¬ against
$23,251,266,558
for
the
the several interested parties in
We must start from the proper
article; namely, the recurrently
cession was under way.
same week in 1959. Our
compara¬
Dow Jones definition of the rules
offering
their
explanation
for
the
long periods, comprising 65% of
"The projected increase in capi¬ tive
summary
for some of the
greeting
the
Treasury's
first. Otherwise the action of the the time since 1898, in which fiasco
tal expenditures is broadly based. principal money
centers in the
D. J. Rails Index is without major
offering of 4^4% bonds due in 25
practising Dow-ists should have
At least a moderate rise is pro¬
United States for the week ended
significance.
V!y
been out of the market, and out years and callable in 15.
jected for each of the major in¬ April 9 follows:
I agree heartedly with much of of income.)
Treasury
Secretary
Anderson dustrial
categories.
Also,
there Week End.
000 omitted
accompanied
his
announcement
of
your estimation of the importance
Mr. Mudge's observation that the
appears to have been some im¬
April 9—
I960
1959
■%
of the D. J. Industrial-Rail rela¬ 1959 summer tops were subse¬ the meagre $370 million subscrip¬
New Ycrk__ $13,789,213 $12,252,896
+ 12.5
some

Richard Russell, insists with some

"crowd to beat").

This

lack

complex

of

,

;

,

tionship.

tion

that

sue's

However, I had thought quently broken on Jan. 5, (a sup¬
sophisticated market posedly bullish "signal"), Mr. Rus¬
commentators and evaluators had sell "demolishes" with the
"recog¬
long since proved that this is a nized" Dow gospel that this "high"
market of stocks and not a stock
(not "top") was achieved by the
market; and that the rails were a Industrials only — and unaccom¬
part of the whole, just as the oils, panied by those important Rails.
chemicals, etc., are; and not a
Such insistence on the still-con¬
most

thing of themselves.

tinuing

If viewed in that light, the D. J.
Industrial Rails and Utilities take
on

a

new

and

significant pattern,

indispensability

of

"con¬

firmation" by the Railroad Aver¬

whether, in the 1960's, this
represents an obvious anachronism
age; or

EST.

total

with

1870

on

either by cash or advance refund¬

ing, under the 4 %% ceiling, were
not

well-founded.")

To

Senator

Illinois,

Paul

doubling

in

Douglas

of

his

of

OF INVESTMENT SECURITIES

&

Dominick

Members New York, American & Toronto Stock
14 WALL STREET




Exchanges

NEW YORK

"It

is

notable

that

one

of

the

largest increases in capital spend¬
ing for 1960 is expected to come
in

the

primary

iron

and

ity.

Spending in iron and steel
is expected to rise by 67% and to
or

exceed

the

1,220,378

1,134,288

+

1,031,000

982,000

+

776,326

691,712

+11.4

Boston

Steel

record

1957
*'

Inventories

As High As

steel

group which is commonly thought
to have some excess ingot
capac¬

equal

Chicago-™
Philadelphia

Steel

high
year,

Termed

7.6
5.0

About

They Will Go in '60

inventories

are

about

as

they're going to go this
"Steel," the metalworking

as

weekly, declared.
Users

will

probably chew up
quarter
industry, while capa¬ and add slightly more than one
ble of turning out far more cars
million to inventory, By June 30,
than it can sell, has nevertheless stocks
should level off at 20 mil¬
level.

hbout 21 million tons this

"The auto

lion tons and change little during
Treasury's expenditures by 59% to more than the rest of the year.
plight was equally, if divergently, $1 billion. The petroleum industry,
Inventories of 18 to 20 million
with
clear:
The
ample
refining
Treasury
exhibited
capacity, tons are in the so-called normal
blatant stupidity in
marketing the plans to increase spending by band. That supply is equivalent
issue. ("They couldn't have done 18%.
to about 90 days of consumption.
worse
had they planned it that
"Only a small proportion of the
Market observers hope that the
way
should develop better expenditures this
year will be for slightly downward trend in steel
methods for marketing bond is¬ addition
to
basic
capacity. All buying signals a change in user
sues")
:
major types of raw materials are practice that will tend to level out
Again, a canvass of investment
.

the

.

the

Treasury's

The

potential

tions

reason

plight,
lenders'

for

namely:
expecta¬

For

Banks, Brokers and Dealers

of

coming higher interest
resulting from a business

Foreign Securities

upsurge.

Our Explanations

Bought

Sold

Quoted

To the
cal and
must

Dominick

tions since last November.

—

Association) and leader of the
politicians defending the 4V4% in¬
terest-ceiling, the morning-after reported plans to increase capital

costs

UNDERWRITERS AND DISTRIBUTORS

role

economist (he was one-time Presi¬
dent of the American Economic

experts elicited another

throughout the United States and Canada

is¬

cate that suggestions to the effect

.

Correspondents inprincipal cities

the

that the Treasury could get a sub¬
stantial amount of debt extension,

explanation of

m

blame

4V4%-ceilinged interest rate.
("The disappointing results indi¬

provement in long-run expecta¬

raging dialectics, politi¬
economic, your columnist

now

add

his

own

explana¬

tions; two-fold in embracing both
a phase of the return
offered, plus,
and most
importantly, the unusual
Call feature which adds
the yield injury.

insult to

Surely activating the investor
apathy stemming from the interContinued

on

page

13

Alfred L Vandcs Brocck & Co.
=;

=

New York Stock
55

MEMBERS:

Exchange

LIBERTY

Tel.: BE 3-8880

STREET,
•

-

American Stock Exchange
NEW

YORK

S

Teletype NY 1-4686

Private Wire System to Canada.

Number 5942

191

Volume

.

.

The Commercial

.

and Financial Chronicle

(1621)

5

■

and valleys in invenaccumulation. In the last four
tory,c steel stocks have fluctuated
hitting the normal band
'when
rising
or
falling
npaks

1

through it

'all

from
Fr

users

said,

range be-

A

*£ (i)

Lead times are short. (2)
steelmakers have great flexibility

capacity for every

ample

and

^finet

danger of

(3) There is no

ried

While many
interesting and bur¬

music

So,

was

years

automakers.

ago

outlook

introduction

drilling, and railroad track-

it

seven

pioneered

again with its
stereophonic high
fidelity instruments which, for the

first
the

cated

of

and

decline, but mill buying continues
limited. "Steel's" price composite
bellwether

the

on

grade,

prime

heavy melting, stayed at $33.66 a
gross ton.
The auto industry was the big¬
gest customer of the steel compa¬
nies in
1959, "Steel"
reported.
[Steel service centers and distribu¬
tors

overtaking

By

Magnavox

cupy

the field.
of

top

from

service

centers

continues

position

a

of

hi

broad

a

fi

quisite

remote

controlled

phonograph
console
Whereas high market
in

national
of

of

market

ex¬

sets

radios,
of the potential
to
now,
been

15%

has,

up

distributors, the auto industry
[regained a position it has not held

reached in the sale of hi-fi sets.
So Magnavox views its future here

since 1955.

with confidence.

Last,

the

year

took 20.48%

auto

of mill

industry

i

centers

feervice

got

centers

company.

received

sales

18.20%.

Says

transportation. Five

Steel

Operating

mar¬

and

rate

to

lag

May
steel

will

11° ?£,
forT P°ssibly
The

weeks

nf

of

Iron Age"

.

.

steel

six

n't ,g °n miH

off

ref'krt
national

says.

Cut

represent

in

24-inch

w(

hi-fi,

ore

pleased

tion

In

centers"

this

of

24-

size, Mag¬

"home

two

for-1

and

on

All

of

the

common

N.

Y.

of

this

S.

or

into

The

and

either

organ

on

an

which

it

and

has

discount

rather
and

than

has

2,000

expects

to

merchandise

A

of

energetic
age

con¬

In

bit

of

confidence

to

market

a

that

following four

State

abroad

he

had

Telephone
prior

a

"tired" in many sections here

S.

house

selling.

o*t

of

through

group

the

best

retail

and

the merger

and

of

the

he

was

WIESNER,

inc.

nin

and

Stanley

been

Bond

&

added

Share

—

R.
to

Co.,

Marengo St.

24-page study of this major electronic manufacturer

discusses

its

industrial

products, and its excellent future prospects.
of

our

brochure
our

its military and

be obtained upon request

can

offices listed below.

CHRISTENSEN, INC.
Blyth L Co., Inc.
New York

14 Wall Street
San Francisco

•

Chicago

Philadelphia

•

•

•

Los xAngeles

Pittsburgh

Cleveland

Detroit,

Corp.

MA 3-6281

Junction. Loveland

N. Y. Stock Exchange
American Stock
Exchange (Assoc.)

Pasadena

Minneapolis

,»

*

San Diego

•

•

San

Jose

_

•

.>t

Oakland

Spokane
•

Fresno

•

5, N. Y.

Seattle

•

Portland

Louisville

•

Indianapolis

•

Sacramento

>

*

and
the

Eureka

Palo Alto

•

Joseph SloWhitworth
the

16

staff

of

North
%

.

goods,

Co.,
with

(Special to The Financial Chronicle;

PASADENA, Calif.

Company

electronic

American

Two With Bond & Share

furniture1 stores,

consumer

Previously

Telegraph

some

Our

Assistant

an

with

outlets—

of

in

serv¬

Department of

as

distributors;

elite

tising

of

years

The

It

r

New Haven Register.

have

acted

&

thereto

the

agency

Attache.

been

present

has

dve

publk£srelations

1955

and Jack E. Ormsbee

Denver




a

and

Commercial

the

of

national

McCall, Jr.
i-vtk. A

ice with the U.

electronic

would be shareholders.

and

H.

exclusively) Denver

and

Grand

C.

men whose
The record of

_

Springs,

staff

younger

is 47.

(l&pxint to- 9+i<J-eitafib

entered

never

an

department

~^eQtert%)riter S-Chri$ten$en
-

joined

com¬

advanced elec¬

of the Municipal Bond Department

724'17thSt.
Colorado

account

stereo

Presidents and

.

an

McCall,
advertising

executive,

enter¬

Boston

r

Mr.
an

and the MAG

for

of

President.

does

is low

W.

Chairman

42.

This

by

Howard

the board and

ahead
only

present

an¬

Calkins,

ranged, .in <1959/60, .between

average

the

*

0fFICES-

to

foregoing,

A copy

onagers

debt,

amounts

dividend is $1

from

()-M

Funded

of

nounced

sells its products direct to dealers

and school bonds

will be Vice

E.

equity,

Mc¬

been

the

on

H.

Guenther

;

stereo

Magnavox

to announce

Robert M. Kirchner

7

there

source

later this year.

47

PETERS, WRITER

Clifford

Vice-President

a

2,351,-

the company as a money maker
for the past 20 years is an obvious

the

as

;
of

been

and

listed

I

Law, Inc. has

equity, what with many such sell¬
ing at 30 to 40 times net earnings.
The working capital position of
Magnavox is comfortable.
The
management echelon is composed

Minacard

with

.

shares

stock

Albert Frank-

give

individual magnetic

as

election

split 2-

outstanding

millions.

net.

and recalls informa¬

well

The

Magnavox compare
With,'"Other'electronic shares cur¬
rently? Assuming 1960 earnings
of $2.50 MAG is selling at 16 times

military
business, depends heavily for its
progress on the quality research
as

Agency

were

to

was

The

nice tone to it.

Albert Frank

buoyancy in

new

November

602

How

cards.

sumer

last

presently

has

by using photographic film;
Magnacard which stores in-

formation

tended

a

McCall V.-P. of

off

quarter

March

common

are

mon

(1) Air¬
including

systems,

has

to have

seems

combining the

with

screen

industry
Magnavox

27%

by

also

Sales

Investors have

Magnavox

now

of

year

offered

manufacture

KIRCHNER, ORMSBEE
(municipal

25%

over

sets.

also at work
tric

first

page

done

which stores

Magnavox console.

a

time

comes

The sound of
beautifully from

high fi, AM and
FM, phonographs. The company is

a mild
orders. But
on

for

has

tainment

more

report

new

TV

navox

backlogs still

Continued

accounted

inch

steel

million
in

about

volume; and last

order books,
L cklogs are worked
,°rders ,wlU not actively
™arket Picture, the
metalworking weekly

imDmvpmiSt^eek
movement

industrial

which

common a

it

watching the stock with interest,
and
a
number of analysts have
been giving the shares a "buy"
rating at around the 40 level.

(5)
data
processing
This processing
is

equipment.

-

reports.

produced

TV

styling, sustained quality
superior performance of its
products.
In
stereo
and
radio

continue

fantastic 35

Knsn960-nnd

of

and

in

sets

the

enjoyed

r

music comes out

Incoming orders for

market.

24

nents

and

firm"6, cui"rent period of "correcnf tha1S ,causfd by a combination
ns

But its

the

first

when
anew.

,

g
*

of

in

major divisions:

Magnavox
order

All

the

Electronics

communications

the

which

army of satisfied cus¬
who will be
thinking of

Call, Jr.,

$4.5

five

for

program—

an

$140 million have been projected
and a per share net of above $2.50.
MAG

communication; (2) Airborne ra¬
dar; (3) Anti-submarine detectors;
(4) missile and satellite compo¬

vanced

orders

behind

-onsumption and it

producers

among

radio sets.

largest

sets, and a new patented
system of military and satellite

is quite unrelated to its
size and has been achieved by ad¬

70% of Capacity

new

in

phonographs Magnavox sales

Industry
of

Magnavox ranks

ten

world's

UHF

stature

and marine
ordnance
and

Rate to

continues

tm'

-

first

shipbuilding

The

About

22%

research

reputation

to

$107.8

started

sys¬

are

the

tomers

trend

100% greater than in March, 1959.
For the full year, sales of about

Magnavox has a current back¬
log of about $70 million in mili¬
tary business. Military output is
borne

equipment and sets, and one-third
from military and industrial elec¬

ket groups which took
less in 1959
than in 1958 were:
Export, con¬
tainers, construction and mainte¬

nance,

nicely balanced
one-third of its

a

from TV and radio sets,
third
from
stereophonic

showing
machinery,
equipment and tools;, tronics.

equipment,
and
nther
military.

Company

has

processing

factors for glamor
growth in Magnavox.
Fur¬

created

best

calendar

peached

1960

year

higher rate.

principal distributor.

are

one

Other customer
groups
gains over 1958 were

industrial

Balanced

Magnavox is

grades. Serv¬
18.81%.
In 1958,

putos 16.90%.

ind rail

Well

shipments of

(finished steel of all
ice

A

The

using
Great
Universal
Stores, a leading British retail
chain, with 3,000 stores, as its

Military

sales

the

handsomely for Magnavox.

Britain

and

in

the

data

products has

com¬

per share in
1959 was $1.99,
almost double the $1.06 figure re¬
ported in 1958.

subsidiary has plans to merchan¬
dise the Magnavox line in Great

(above
has been

is

/For

these

*

ther

net

Further,
Magnavox
Ltd., a new British

Electronics,

$1,250.

and

I

equipment.

this

1959

television

Col-

This

the

of

earnings.

its

company has, for decades,
for the quality of its

* gales

the
The

well.

up

overseas

for

and

against $80 million in the
preceding year.
More important,

been

by acquisition of
Limited of England.

of

all

million

manufacturers of record changers,
tape recorders and reproducing

saturation

homes)

TV

have

laro,

one

for

sophisticated

with net profits rising at an even

expanded

as

distribution

wired

achieved

in

radio-

at

activities

planning

shapes

year

has, for five years, been
supplying
record
changers
for
Magnavox phonographs. It ranks

range

an

of

company

oc¬

instruments

$79.50 portable to

a

90%

to

leadership

It offers

quality

only about

second.

were

and

forward

evidence

warehouses strategically lo¬
throughout the country.

Recently

inspection, Magnavox

distribution;

as¬

forward

industry as well as the
military, the burgeoning popular¬
ity of stereo and hi-fi, and the

efficient
and
profitlines. In creative research,

pany

Expansion Abroad

time, brought into the home
true breadth, depth and mo¬

fell from 88.7 to

produced.
Scrap market prices held last
week, following the recent sharp

tials

to have developed all the
its business along in¬

manufacture,

with

the introduction of its
electronic organ, the poten¬

new

of

prone

behaves

business,

telligent,

appliance shops. Mag¬
is unique in the fact that

rose

the operating rate
dulation of sound from musical
85.9% of capacity.
recordings. Since then stereo sound
About 2,527,000 ingot tons were
has been
internationally acclaimed
week

Last

car¬

that

and

displays a
Expansion of its

look.

highly

a

upon

appears

f

try

development,

on

tems

its product line is the
only one in
the • business "'fair-traded" in all
states having such

.

work.

and

annually

Rising Earnings Trend

and

navox

stock

a

surance

competent
staff in four modern laboratories.

incorporated in 1917
almost certainly be invested as a
legislation; and
merger of Commercial Wire¬ it maintains
excellent price con¬
more profitably.
A-'
■
less and Development Co. and Sotrol in those states which have no
A further reduction in steel pronora
Phonograph Company, and fair trade laws.
fduction—but not a sharp drop- has to its
credit
a
number
of
is expected
this week as steel¬ "firsts."
Company manufacturing facil¬
Magnavox produced the ities have been
makers adjust their output to re¬ first
nicely decentral¬
electric phonograph, the first
ized and
located
in
areas
duced demand.
pro¬
combined
radio
and
electric
viding low manufacturing costs.
Mills are feeling the impact of phonograph and the
first single
Distribution and delivery is from
slowdown in steel buying by the dial radio receiver. Just
two

c6uld

in

million

by

on

phases

and little likelihood of geoning electronic companies have
only in recent years entered the
prices before Dec. 1. (4)
industry, Magnavox is an oldDollars tied
up in inventories timer. It

But brightening the
the seasonal upturns
construction, canning, oil coun¬

is

review

higher

are

$12

research

of the progressive
Magnavox Company which has made
notable advances in stereophonic sound and in
military electronics. -V'

%

strike

a

spends

By Dr. Ira U. Cobleigh, Enterprise Economist

to keep their

u.beithe"reaSondble

which Magnavox has become
known.
The company now

well

Quality Product Producer

indications, "Steel"

intend

for

A Sound Electronics and

Oxnard

6

The Commercial and

(1622)

Brothers
99 V2

at

DONALD D. MACKEY

BY

bonds

The tax-exempt bond market has
been very quiet in recent days
as

a

of the light

consequence

ply

of

some

business.

new

symptoms

of

evident.

were

Financial

and

Municipal

dex,

which

sensitive

it

is

of

the

prices

Commercial

Chronicle's

State

In¬

Yield

Bond

is

immediately

not

based

changes since
the offering side

on

market, indicates the mar¬

ket's

past
about three-eighths of a
loss

average

week

at

point.' The
from

to 3.433%

for

the

yield went
April 6
April 13. This mar¬

average

3.40%

last

on

fluctuating

bond
\v;

1

.

mar¬

:%%%■■•'

week

This

kind

of

quently trying and perhaps
the

resents

lowest

form

on

period, however,
issues continued

highly competitive basis and

a

high levels (since December's

new

lows)

reached

were

stances.

in¬

most

indexes

Yield

mally based

in

nor¬

are

prevalent second¬

on

chandising.

It
certainly
imaginative.

in that

spasm,

The long 3^4% bonds were

the

out to

is

building

is noted in

as

ingly

below.

increas¬

been

culminated

Monday

Tuesday of this
Treasury 4%s

and

the

As

below

weakness

in

new

99,

tax-exempts

quoted down and

even

new

were

issue

seemed less competitive
Tuesday. This sharp market

bidding
on

drop
did

came

bids

about

abruptly

as

it

as

February 18 and 19 when

on

backed

were

off

by dealers,

thus creating a temporary

market
stalemate.
During
this
period,
Treasury issues were particularly
easy
and ' several
sizable
new
state and municipal issues were
posing

time,

few

a

large flotations.

situation

The

week is to

this

exists

it

as

large extent similar.

a

offering

The Treasury issues, old and new,

dations

priced at

issue

is

may

Federal

was

Treasury's

funding
which

sold

A

not

less

a

with the
bonds while

pertinent,

confusing

men

quainted,

bills
price of

one-year
at

4y4%

precisely

bond

re¬

comparison

25-year

new

of

issues
was

4.60%.

compounded by

$2,000,000,000

who

if

even

have

not

is

none

to

those

become

ac¬

to

accustomed,

terest
the

the

but

these

bond

the

nerability

seem

bond market's

at

present

in

is

account

(1962-1997) bonds. Yields

high

as

the

as

4.35%.

about

offerings

not

are

Wake

from

Next

the

as

market

receptive.

be

must

The

is

obvious

be

continuously

is

to

has

market

rate

uninhibited

tivity

is

trying

interest

fluctuation

of

it

ours,

tell

to

structure

and

that

prevail

that
must

bonds

recep¬

under

on

stress

varying volume. Our states and

municipalities naturally don't en¬
joy financing at higher rates in
view

of the comfortable

dations

However,
better

are

that

the

economic

our

be

sustained

York

so-

awarded

(1962-2010)

bonds

a

Chemical
Trust

Co.,

Bank

We maintain active

for

sealed

bids

and

issue

for

$29,260,000

Fulton

Georgia

plans

County,
to

eration from
enced

wants

bids

for

indicates

their relative
their

a

rise

Co.,

Junior College Dist., Cal.
Bernardino, California

—

•

Metropolitan Sewer Dist., Ky.__

North Miami Sch. Bldg. Corp., Ind.
-York

in

new

County, South Carolina

the

issue

anticipated
volume, the

Amarillo

Independent S. D., Tex.
City, City Sch. Dist., Kan.'
City, N. Y.__
St. Louis Co., Hazlewood Sch. Dist.
No. R-l, Missouri.
Spokane, Washington
_

_______

5.90% Preferred

R. S. Dickson

i

K

-~J

■

7

1919

& Company

0cp-i rss*'.1

tV

CHARLOTTE

■

NEW YORK
221 Fourth Avenue • ORegon 7-3000
Other Talcott Offices Serving:

Chicago

•

Detroit

•

Boston

•

Atlanta




Member Midwest Stock

1

•

Los Angeles

Atlanta

NEW

Columbia

Miami

Raleigh
Direct

Wire

to

8:00

,

4,990,000

1962-1979

9,600,000
8,500,000

1961-1987 -Noon

p.m.

10:00 a.m.

1961-1988

Noon

4,400,000

1961-1983

11:00 a.m.

1,000,000

1961-1990

1:30 p.m.

1,200,000

1961-1980

12:30 p.m.

2,200,000

11:00 a.m.

________

1,750,000

1960-1989

2,300,000

1961-1979

11:00 a.m.
11:00 a.m.

13,275,000
16,000,000

1961-1980

11:00 a.m.

1961-1985

'

.

8,000,000
1,250,000

'

1

9:00 a.m.
'

.

1978-2000

11:00 a.m.

1963-1990

10:00 a.m.

1,000,000

—

,

2,000,000!.h961-1973
3,850,000
75,000,000

1:00 p.m.

11:00 a.m.
11:00 a.m.

1960-1980
1961-1990

1,400,000

1961-1980

8:00 p.m.

1,000,000

1962-1980

-10:00 a.m.

________

10:30 a.m.

1961-1980

1966-1999
1961-1985

'

11:00 a.m.
8:00 p.m.

May 2 (Monday)
Cascade
'
.

Jacksonville

7,000,000

2,100,000

■

CHICAGO

2,000,000

2,873,000

Cook

County S. D. No. 1, Mont.

Pearl

'

3,100,000

7:30.p.m.

May 3 (Tuesday)

' '

County, Illinois_____

Minnesota

Richmond
All

Noon
2:00 p.m.
11:00 a.m.
Noon

—-

30,000,000

•

Greenville

2:00 p.m.

•

1961-1990
1962-1980

Southgate Community S. D., Mich.
Union City, New Jersey

Exchange

YORK

1960-1988

.

Sacramento Municipal
Utility District, California
______

INCORPORATED
■»

p.m.

April 28 (Thursday)
Abilene Ind. School District, Texas
Harris County, Texas

Class "A"

Established

7:30

3,500,000

April 27 (Wednesday)

____

commercial

1961-1970

April 26 (Tuesday)

stability, in view of

to

1961-1981

1961-1985 % 2:00 p.m.

April 25 (Monday)

Allentown

long-term, is quite remark¬
addition

8:00 p.m.

1,175,000

April 21 (Thursday)

Shaker Heights, Ohio...

able.

In

11:00 a.m.
9:00 a.m.

1,800,000

1963-1980

San

Smith, Barney & Co. Turn¬
Index

11:00 a.m;

5,400,000

2,000,000

Foothill

obligations.
Bond

Noon

—___—

Florissant Sch. Dist. No. R-2, Mo.
Washington Toll Bridge Authority,
Washington

4

$8,500,000

Stevens Markets, Inc.

specialists.

1963-1980
1961-1980

1961-1982

White Plains School District, N. Y.

Stevens Markets, Inc.

financing and credit

100,000,000
1,000,000
2,937,000

...

$9,600,000. Also, the
Plains, New York, School

trading markets in:

experi¬

3:30 p.m.
8:00 p.m.

1961-1980

_________

York

and the finest co-op¬

1960-1987
1962-1986
1981-1980

Cedar Rapids Comm. S. D., Iowa..
Fulton County, Georgia

sell

of

Common

You'll get fast action

2,050,000
2,025,000
7,500,000

1,100,000

,

Colonial Stores, Inc.

Talcott

10:00 a.m.

3,600,000

Kansas

to

1962-1986

29.260,000
4,200,000
1,000,000

New York

Talk

25,000,000

Union Free Sch. D. No. 15, N. Y.

Authority, Pa...
Ballston, Clifton Park, etc., City
3.95%. On April 7, 1960 the in¬ ^ School District No:
i^New York
dex ; averaged
Buncombe County, North Carolina
3.93%
and
on
April 13 the figure was f 3.96%. Cleveland, Ohio
Although these bonds are gen¬ Los Angeles City Sch. Dists., Calif.
erally sensitive to the market, Louisville & Jefferson County "

Bank,

Trust

11:0U a.m.

_

slight easing in dollar quoted is¬
sues
during the past week. On
March 31, 1960 the average was

group

New

Northern

bonds

pike

Housing
$20,400,000

to

serial

The

City

Authority

bids

serial

rates- that

headed by Chase Manhattan

seeks

gen¬

During the past week several
interesting
new
issues
were
brought to market. Last Thursday
New

1961-1985
1961-1980

Philadelphia, Pennsylvania
Pierce County S: D. No. 10, Wash.
Portsmouth, New Hampshire
Reading City School District, Ohio
St. Louis County, Ferguson-

-

Recent Financing

the

20,

District

nourishing.

CALL

2:00 p.m.

Oyster Bay & No. Hempstead

day. On Wednesday,
Philadelphia, Pennsyl¬

vania

White

growth may

by

new

same

April

an

enjoyed
for
25
years
it
may
soon
become

understood

scheduled

the

(Atlanta)

accommo¬

dynamic quality that

of

$225,000,000.

includes
$100,000,000
Triborough Bridge and Tunnel Au¬
thority serial
and
term
bonds
scheduled for sale about April 19
(a negotiated type loan), and $25,000,000 State of California serial

drastic

inevitable if

total

than

more

-

1961-1990

_______

This

that
been

us

week's

is

sues

a.m.

——

-

2,000,000

Ewing Township, New Jersey——
Fort Worth, Texas..
Kane County Sch. Dist. No. 131, 111.
is¬

Big Week Ahead

p.m.
p.m.

April 20 (Wednesday)

.

vul¬

general

County, North Carolina..-.
Sch. D., Calif.

Whittier Union High

yet

as

8:00
2:00

(Friday)

;

Authority, N. Y

out

run

10:00

1961-1990

3,350,000
20,000,000

April 19 (Tuesday)
California

revenue

Results

1

10,000,000
1962-1979
6,000,0001963-1980

Elyria, Ohio
•
1,100,000
Pima County School Dists., Ariz... % 4,900,000

and

to

levels to heavy new issue volume.
In an economy as broad and as

large

/

.

Lynch,

3.988%

Authority electric

sources

WHEN THE

Factoring

balance

3.70%
3.80%

April 18 (Monday)

Smith. The in¬

was

o

3.85%
3.90%

April 14 (Thursday)

—

operations

factors

opened.

.

,

known.

best

Financing or

Mu¬

Fallsburgh, Thompson, etc.,
Haupt & Co., and B. J. Van
Central School Dist. No. 1, N. Y.
Ingen
& Co.,
as
managers of a
Mason, Michigan
nationwide
group,
are
offering Montgomery County, Maryland--$20,000,000 Puerto Rico Water Re¬ *Triborough Bridge & Tunnel

vailed this week.

erates

Commercial

will be

Ira

generally known until
weekly report is issued today,
support is said to have pre¬

called

IS FOR

bid

cost

o'oc2°

~

Information, where available, includes name of borrower,
of issue, maturity scale, and hour at which bids

$4,500,000 as of this writing.
Today, the First Boston Corp.,

will not be

fluctuated

ket confusion

market

Texas

Merrill

Pierce, Fenner &

1980
1979
1977
1980

amount

.

and

3.70%

the following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set.

Water

Co.

3.85%

3.30%
3.15%
3.10%
3.10%
3.35%

Larger Issues Scheduled For Sale

sold.

Central

West

Trust

accommo¬

government

open

apparently

days. Mar¬

as

repurchase

to

the

the

The

1978-1980

3.30%

In

maturities
for 3.90s. The

par

City, N. Y.___

Asked

3./5%

April 13, 1960 Index=3.4333%

three

half

about

______

tinental IllinoisNational Bank &

carrying more bills than
be convenient. The extent of

have sold off and have irregularly
for several

upward

dealers

up

cancellation

official

acceptances are up '%%/It is also
reported that the Federal Reserve
is

New York

District (Abilene) Chicago, Illinois
$9,000,000 general obli¬ Clark County School Dist., Nevada
gation (1976-1993) bonds to the Port Jervis School District, N. Y.
P. R. Water Resources Authority.group headed by Harris Trust &
Savings Bank, Chase Manhattan
April 15
Bank, White, Weld & Co., Con¬
University of Washington, Wash.—

representing
a
strengthening economic situa¬
tion.
Concurrently,
commercial
paper has risen %% to %% and

point

the

by

scarp

movement in rates

market glut. The
recovered however,

a

the

explains

ury

of

a

dimmed

is

All

with

coincident

the

were

3.%-%
3V4%
314%
3%

•

awarded

our

statements and actions. The Treas¬

short

scheduled for sale within

market slowly

months

last

The

nicipal

Outlook

bond market per¬
spective which has been hazy for

Treasury

situation

week.

Suddenly,

since the advent
financing. This

hesitant

the

fell

has

market

New

by

Issue

Treasury

v

The

of

detail further

some

Chicago, 111.

Ripley
&
Co.,
Lehman
Smith, Barney & Co.

group.

2-- '3%%:

Calif

New Orleans, La

District
bonds
sold to the Har-

were

Angeles

Cincinnati, Ohio l

Brothers,

The

coming week's calendar is heavy

Hazy

on

riman

may

proportions.

;

Affected

Adversely

of

(1960-1988)

-

Oyster Bay, New

Drainage

York,

-

Los

Bid

3.90%
3.40%
3.40%
3.30%
3.25%
3.25%
3.50%

Maturity

3Vz%

•—

—-

half sold.

about

(State)

yield. The

3.35%

a

The $2,500,000

volume

daily to what

up

sizable

be

soon

is

REPRESENTATIVE SERIAL ISSUES

1978-1980
Connecticut (State)
3%%
1980-1982
New Jersey Highway Auth., Gtd.__
3%
1978-1980
New York (State)
■
3%
1978-1979
Pennsylvania (State)__.
3%%
1974-1975
VeLont (State)----------3%%% 1978-1979
New Housing Auth. (N. Y., N. ,Y.J. <.',3Mj%
1977-1980
California

Se¬
Co.

priced
issue

issue

new

American

Chicago,

group.

is

the

and

state

Rate

offered.

and

mer¬

offerings.

ary

for

curities Corp., Dean Witter &

rep¬

of

of

total

bonds

MARKET ON

Florida (Pen$3,235,000
school

sold

of

Bank

development is fre¬

this

new

four

municipal end of things, (1961-1978) bonds to the Kuhn,
Loeb & Co., B. J. Van Ingen &
dealers
have
begun to wonder
again. As the supply of new issues Co., Kidder Peabody and Co. and
Trust Co. of Georgia group. The
dwindled, and yields have been
reduced, the number and quality long bonds were priced at 100 for
3.90s. The unsold balance is about
of
customers
have
substantially
lessened.
In
fact," dealers have $1,100,000. Durham, North Caro¬
awarded
$3,000,000
(1961begun to do considerable business lina
just between
themselves
again. 1985) bonds to the First National

Municipal market conditions to¬
day further parallel the February

bidding for

12)

In the

least

two-week

New

County,

sacola)

ket

change about paralleled the
previous
week's
action.
During

(April

bid

were

Escambia

Dealer^ Puzzled

Thursday, April 14, 1960

,

Tuesday

issues

sup¬

market

to

kets.

Moreover,

easing

The

and

violently

On

by

guaranteed

are

City.

.

is also showing
increase. On April 13 it was

municipal

Co.; and others. Priced
for 4%
bonds maturing

2007-2010,
the
balance is about
York

.

.

current higher level is still
relatively moderate, a trend may
some
be starting. Next week s total
A 1 week
ago
the will be important to our tax-exreported : group $292,885,500.
$13,000,000. These figure was $262,909,500. Although empt market.
List"

"Blue

Salomon Brothers & Hutzler, Ban-

TAX-EXEMPT BOND MARKET

Financial Chronicle

9,500,000

—

River Valley

___________

Water

48,820,000

1963-1980
________

11:00 a.m.!
10:00 a.m.

Supply

District, Mississippi

8,800,000

1964-1999

10:00 a.m.

Offices
&

*Negrt'ated offering by Dillcn, Read &
Co., White, Weld & Co., W. E. Morton

Co., and Allen & Co. syndicate.

191

Volume

Number 5942

.

.

The Commercial and Financial
Chronicle

.

ally impose
quirements

Management of Bank Funds

A

"bank failures are not entirely

since

thing of the past

a

run

.

and

warned to keep bank capital aligned with bank asset
reminded of the distinction between primary and
secondary
reserves; advised that this year's prospect of
profitability warrants
reducing such profits through tax saving capital losses; and encour¬
portfolios;

a

aged to know and make use of their knowledge of their
community
and the national
economy.

in banks, and
and banking

Public confidence,
in

monetary

our

essential ingredient

system, is an

national welfare and

in our

pros¬

The

perity.

is

a

protec¬

ternal

this

utmost

the

importance. In
John T. Masten
1 9 5 7,
two
banks failed,"
both because of financial irregu¬
larities. During

management

poor

banks

Two

be¬

two

and

financial

of

irregularities.1
placed

were

in

re¬

ceivership during the first half of
fail

do

Banks

1959.

management and

due

to

poor

to financial ir¬

regularities, which is a form
managerial incompetence.
lost

Sums
ment are

due

to

through

of

embezzle¬

robbery.

variability

by

Periodic

competent

a

outside

firm

are
recommended, - particu¬
larly where a full time auditor is

bank

a

lost

in

over

South'

Carolina -that

-

$600,000-spread

over

a

23 year period. This

not

shortage was
until an outside

discovered

firm

audited

the

Fortunately, this

bank's

bank

books.

was

ade¬

quately covered- by an Excess
Fidelity Insurance policy.2
The

Administration

of

Bank

-

Funds
If

we

regard the subject, "Man¬
agement of Bank Funds" in its

traditional content,
cerned
and

we

principally; with

distribution

ties and

net

of

worth

are

con¬

the nature

assets, liabili¬

serve

as

are>
mat

a

guide.

however, principals

addition

i

situations,

principals
have/ meaning

do

significance.

\ hls

important obligation
commercial banker is to
depositors on demand. In

J' Commercialtho

banks

ohiicf^era^ puhhc
?in-

fnlfm

Pay

of-

jl)) his
the
t.ie

to

de¬

past

information

re¬

desirable to know the
trend,

it has

once

been

useful

capital

requirements.

also

can

be

satisfied

to

search

If

the

in

may

of

effort

dis¬

trend,

should

be

market

.re¬

to

£act,

by

the

Federal

Bank

good

a

If

Reserve

it

to

It not only pro¬

absorb

market

where

-with

losses.

have

difficulty
A

in

bank

cash

large

inadequate capital, may be
profitable but it is also in a
position

would

times

income
proper

Where

For

the

the

of

end

1959,

counts

equal to

since the

cline

peak

in

of total

the

increase

in

capital

of assets

present

ratio

has

when

it

as¬

bank

1930's has not

1934,

the

American

had capital ac¬

7.8%

growth

ship.

capital
kept pace

bank

was

assets.

equal

to

compared with

as

7.8%.

However, the
over
1945
improved

fell

below

6.0%.

Other
more

things being equal, the
capital a bank has, relative

to assets

to

its

great

items)
in

payroll.

primary

33.1%

reserves

about

now

19%

present

of

1933,

only

bank

figure,

for

able

19%,
or

is

by

reserves

is

which, in

recent

ing order,

today,

of

tYe

This

re¬

announcement

The balance

over

the remaining four

months, the secondary
the
banking system

1958,

rate

6.0%

banks held
of their assets in the

one

year

less.

or

Extending the

■; period of five years, the percent¬
age was 18.5. By the end of Octo¬
can

however* one
primary reserve
30

or '

35%

ber last year, the one year or un¬
der
percentage* had dropped to

and

4.1%

and

to

age

the

17.0.

five

year

Continued

offer to sell or a solicitation of an offer
offering is made only by the Prospectus.

to

buy these securities.

of

During the period from Decem¬
1949

annual

posits

to

December

growth
Of

course,

different

pect

for

commercial

at

•6.4% .3

rate

1958,

the

time

de¬

banks

growth

banks

may

be

The Mountain States

ex¬

rates

to

prevail from community to com¬
munity. -Incidentally,
the
6.4%
growth rate for time deposits in
commercial

$40,000,000

was

would

one

Telephone and Telegraph Company

com¬

Forty Year 5% Debentures

pared with growta rates of 16.0%
for

savings and loan

and 20.4%

associations

for credit unions. With

Dated

April 1, I960

higher rates b3ing paid this year
many savings and loan associa¬
tions, and with the 3% ceiling on

-

Due April 1,2000

■

.

by

bank time
of

rate

Price 102.279% and accrued interest

deposits, sustaining the
will Y be difficult.

growth

Government

and

corporate bonds

have also become
as

more

competitive

a

attractive

deposits.

The

also

banker

size

to

;

is

„:It

alternative

to

desirable

study

distribution

.

for

-the

carefully

and

costs

Prospectus may be obtained in any State in which this announcement is circulated from only such
oj the undersigned and other dealers as may .lawfully offer these securities in such State.

the

of

de¬

posit accounts. A study of demand

of

Jan.

banks

1959.^ discloses

28.

held

over

HALSEY, STUART & CO. Inc.

of
individuals,
corporations,'as

accounts

partnerships and

was

41V2

some

SALOMON

found that
million ac¬

HUTZLER

BROS. &

BEAR, STEARNS

AMERICAN

serving

that have

an

071 demand. To

counts

with

balances

bank

of less

A CO.

SECURITIES CORPORATION

A. G. BECKER & CO.

$1.0C0.

The

accounts

nearly

81%

of

counts,
9.2%
the
over

yet

all

they

-

than

constitute

demand

contribute

of

the

only

8u5«j?e cJrJorSioi, Federal
Pp.°28^'29^Car,n^

BACHE

& CO.

DeP°sit In"

of the total

number, but accounted

for

of

37.2%
does

the
not

or

an

volume.4

House, January,




&

CO.

,

J. BARTH

& CO.

determine

the

accojnt. Large

special accounts

BLAIR

&

E. F. HUTTON & COMPANY

HIRSCH

CO.

& CO.

WM. E. POLLOCK & CO., INC.

NEW YORK

HANSEATIC CORPORATION

INCORPORATED

Size

JOHNSTON, LEMON & CO.
J. C. BRADFORD

&. CO.

AUCHINCLOSS, PARKER & REDPATH
COOLEY

& COMPANY

FAHNESTOCK

&,

CO.

BROTHERS &,

CO.

usu¬

3 "Growth
of Selected
Savings Media
During
the
1950's," Monthly Business
Review, Federal Reserve Bank of Cleve¬
land, January,. 1960, pp. 8-10.
4

WERTHEIM

SHEARSON, HAMMILL & CO.

BAXTER &. COMPANY

SCHWABACHER
economy

MERLE-SMITH

of total demand

accounts

whole.

&

ac¬

deposits. At
other
extreme,
accounts, of
$100.COO were less than 0.2%

alone

DICK

George Garvey, Deposit Velocity and
Its Significance, Federal Reserve Bank of
New York, 1959, p. 42.

SWISS

&

AMERICAN

April 13, 1960.

CO.

CORPORATION

STERN
VAN

percent¬

The current level is

growth appears to be satisfactory.
ber

At the end

commercial

ment securities with maturities of

weeks,

an

The

may

form of marketable U. S. Govern¬

higher.. These are usually small
country banks. Such a high per¬

is not

large

a

matures

'

about

veri¬

centage is seldom justified, unless

even

to

preferably in descend-,

have tended to decline.

with

of

that

portfolio

year.

of

reserves

re¬

lyze bank statements and take this

percentages

the

In recent

to

find

banks

up

1

have been negative by about $500
million.
Even

maturities

understood

of
one

one

authorities

years.

look at the level of free

a

include

market¬

For myself, I am will¬
the five year concept

use

is

within

until there

requirements. This

serve

fied

it

Other

include

be spread,

The

close

less.

or

portion

a

definition.

would

issues with maturities of

would

if

accepted

Government

S.

five years.

only

assets.

further reduction in bank

a

can *

converted

authorities

U.

year

primary

account

the minimum unless
is

From

years.

in

be

generally

Some

ing to

deposits, the greater
is the protection afforded the de¬
positors. Corporations with large
deposit balances frequently ana¬
or

or

or

'•

recent

of

' ;

is a banking rather than
legal concept, it has no precise

a

system, pri¬
(cash and due from
have tended to de¬

bank

the

in

banking

squalls need

in

reserve

have

but it must also hold

v

when

placed

this test, most small banks will
rely
upon
short-term
Treasury
issues for secondary liquidity.
•
Since the concept of a
secondary

producing
assets.
The
balancing of this relation¬

banking.

Little

commercial
paper,
banker's ac¬
ceptances and call loans may meet

is the most important man¬
agement function in commercial

poor

are

easily
and
into cash
assets.To qualify as a secondary
reserve,
an
asset must be:
(1)
short-term,
(2)
high-grade and
(3)
readily marketable.
While

demand.

on

They

quickly

ship

more

avail¬

involved

reserves
are
some¬
the
second • line
of

called

defense.

Reserves

difficulty

hold

must

reserves

mary reserves

sink

no

excess

Secondary Reserves

Secondary

only vault cash,

meeting

capital is adequate, mild financial
not

Primary

had

paying its depositors
It
would, however,

capital provides, the "pro¬

depositors

—

bank

if

a

be

Assets

a

served

discover

valuable

prove

situation

a

is

growth

use

In

trend

competitive

bank

a

its

an

reasons.

in

for

used

with

The

consideration

serious

the

established, can
predicting future

in

seldom

have

holders' investment. A, bank with

14.4%

community
state

maintaining

the

At

of

rate of growth for both demand
and
time
accounts.
The
trend,

profitability of

a

l96o»

the

obligation,-a' banker
a thorough understand-

must v

ing

are

^rivate-institutions

(

be

or

be

high
that

better

situation

concerned,
in general,

positions were made
through the market.

INCORPORATED

most

i!5

best

of

garding seasonal variability, it is
also

times

balances, it also protects the stock¬

In

interesting data. It

nax

extent

primary and secondary
policies.

ana

The

they

tects

with

In

is

rates

tective cushion."

reserve

deposit

averages

Bank

be

special

banks

Treasury bills.
is

stated, that while
capital is important, in the final
analysis, it is not as important as

Capital Accounts

he

Where

do

study

a

have general
applicability. By
paaking the proper allowances for
individual
and

and

can

by

25

should

The

or

capital. In
this sense, each
bank possesses in-?
dividuality, having v its own pe¬
culiarities and problems.
Av°rages
lor the
system as;a whole can
cnly

for

need

the bank's

not

employed.
V ;.v ' Y Y C
,A;Y recent issue of " Burroughs
Clearing House notes the case of

rate

of

sets.' The

search

control.

This

year.

comparison

about

ing the need for seasonal
liquidity.
This in turn, will assist in
shaping

tem

internal

is

commercial banks

given

audits

Where

capital

the nature and quality of bank
prevailed during the last 25 years. assets. Low capital ratios should
Higher rates of turnover increase impose conservative policies in
the possibility of sudden shifts in the administration of bank funds.
deposit
balances.
For
member-

demand?

on

problems?

The mature

It goes almost
saying, that every bank
should continually review its sys¬

without

of

pay

whom

usually fluctuate with
degree of seasonal varia¬

comparisons.

larger than amounts lost

banks

Figures, based on past
performance, will aid in determin¬

1958, three banks

suspended operations, one due to
cause

-

records.

of

is

It

deposit liabilities.

work?

termined

irregu¬

larities

Excessive

turnover,

Currently, the rate for

at

they

bility.

show

window.

to

single borrower.

a

accounts, if problem but when it occurs, prof¬
period of time, its are diluted and frequently in¬
changing
conditions adequate to warrant investment.

discount

their

that may

ve5*y

a

larger the able
larger the additional risk is
be extended unneeded
funds

a

standing

to

the

of

is

individual
over

banker

a

line

The

needs

to

deposit

thorough understanding of

are

some

against
due to in¬

funds
loss

that

credit

the
community.
capital ' account,

banks, it is likely to increase the

Bank

Deposits

.

bank

of

tion

His

live? These and other
questions
about the depositors deserve
care¬
ful consideration: H -:'
\
/.

tion.
The

a

obligated

do

considera¬

of

have

and

important

the nature of his
Who are the

What

worthy

topic

Banker

is

cash

the

serve

.

*

v

people

"Management
of
Bank
Funds" is,
therefore,

The
It

would

better

to

per
;

and the money market

of

smaller

'

Adequate capital not only pro¬
tects, 'it also enables a bank to

rate

and needs.

increase;

involved.

be/clearly indicated.

will

investment

there

ing banking connections.

credit

recorded

thoroughly their

deposit liabilities and growth trend and their loan

accounts

7

factor into consideration in select¬

portance of governmental, bank or
other special deposit accounts will

debits

The

,

of

the

The

the conservative side

bankers are: admonished and shown how to analyze

re¬

information obtained in
classification by size. The im¬

a

long

y

liquidity
bank.

a

classification

ment

Author provides bankers with a timely check list to
help improve the
state of their business. He also submits a list of short and
err on

higher
upon

by type of depositor will supple¬

liy Dr. John T. Masten, Professor of Economics, College
of
Commerce, University of Kentucky

forecasts wherein he advises bankers to

(1623)

ALSTYNE, NOEL & CO.

on

page

14

PARTIES

INTERESTED

SEND

TO

LITERATURE:

THE FOLLOWING

Angeles Metropolitan Area—

Los

,y

■

yy'

•.

Sales.

lar reference to Kaiser Aluminum

on

Chemical, Reynolds Metals Co.,

Aluminium

&

McKinnon,
4, N. Y.

Aluminum

and

Ltd.,

of America

Company

—

Thomson

New

Broadway,

2

York

sizable

and

new

on

Radiation
Atomic

for

customer

Instrument

Industry—

Development

Securities

Co., Inc., 1033 Thirtieth Street,
N. W., Washington 7, D. C. Also
available is
American

bulletin

a

on

Share in

Industry, Inc.

are

and

Shipbuilding

Co., Ltd., Sumitomo
Chemical Industry Co., Kawasaki
Steel

Co.

Power

Ltd.

Quarterly

—

Securities

re¬

Re¬

&

120 Broadway, New

search Corp.,

5, N. Y.

Block

Los Angeles 14,
Calif. Also available is an analy¬
sis 1 of California Water & Tele¬
South Spring St.,

Stock

11

Exchange,

Street, New York 5, N. Y.

View—Monthly Invest¬

ment Letter—Burnham and Com¬

15 Broad Street, New York
5, N. Y. Also available in current
Foreign Letter.

pany,

Canadian

Market

-

Saunders

Cameron

Canada.

■;1,

•

Canadian

book"

—

Limited, 55
Toronto
1,
Ont.,

St.,

Yonge

Stocks

Mining

including

—

active

reviews

of

Adelaide

gold

West,

St.,

Toronto,

Industry

Match,

Chicago

Consumers

Draper

on

Uni¬

Power,

St.

Western,

Dashew

Paper,

National

data

Bank,

North

&

Machines,

and

National

Pittsburgh

Corp.,

Business
Federal

Association,

Mortgage

Investors Diversified Services, and
Plastics.

Pioneer

Convertible Bonds

—

figures—Carl

Loeb,

M.

Comparative
Rhoades

Co., 42 Wall St., New York 5,
Y.

■

Hawaii

figures on ten largest banks
—Bankers
Trust Co., Bond De¬

study of the
of the state—Dean Wit¬

economy

ter

&

San

Francisco

Co.,

St.,

Montgomery

45

6, Calif.

quarter operating results—
Kidder, Peabody & Co., 17 Wall
first

St., New York 5, N. Y.

tin—Vilas

curities

&

Imports:— Review

and

in
April issue of "In¬
Digest" — Yamaichi Se¬
Co. of New York, Inc.,

Ill

—

&

Yprk 4, N. Y.

American

Broad¬

Stocks—

Analysis

—

York.

Stocks.

Data in current issue
Investment
Letter" —

Company
of

New York 5,

mons,
Beaver

available

5, N. Y.

son

an

compari¬

the listed

industrial

the

the

and

Averages

Dow-Jones

the

in

used

over-the-

35

National

in

used

industrial stocks

counter

Folder

up-to-date

between

stocks

—

Bureau

Quotation

Averages, both as to yield and
market performance over
a 20-

period — National Quotation
Inc.,
46 Front
Street,
4, N. Y.

vear

Bureau,

New York

thority

Report

—

—

Government

Puerto

for

Bank

Development

Also in the

38, N. Y.

issue

same

Blaw Knox Company,

on

Reichhold Chemicals, Inc., Ameri¬
Marietta

with

reference

ticular

Co.

Shoe

Stores—The

to

Nunn

Bush

Brothers

Edison

and

par¬

Milwaukee

Co.

Citizens

and

Co.,

207

Bulletin —
Wall St., New

Switch Suggestions
York

&

a

5,

review

Bissell

Co.,

N.

36

sis

with

the
an

current

is

market

analysis of Johns-

Corp.

Chemical

Company—Report—T h e
Milwaukee
Company,
207 East

Milwaukee

Street,

Michigan

2,

Also available is a report

Wis.

on

Potash Company of America.

Kendall Co.

garten

—

Analysis
York

New

Wein-

—

551 " Fifth

Company,

&

17,

N.

Y.

Fund—Quarterly report—
Lazard Fund Inc., 44 Wall Street,

Lazard

New York

5, N. Y.

5, N. Y. Also in the
same
circular is an analysis of
Outboard Marine Corporation,
York

Ltd.—Analysis

du Pont of Canada

Hammond
&
Nanton,
Ltd., Nanton Building, Winnipeg,
Man., Canada.
—Osier,

Ltd.

Corp.,

Ecuadorian

Mem¬

—

&

Walker

H.

Co.,

Street, New York 5, N. Y.

Robert

on

Mitchell

Co.

Magnavox—Memorandum—Wal-

Co., Inc., 74 Wall Street,
5, N. Y. J ,

&

ston

Records — Data — L. F.
Rothschild & Co., 120 Broadway,

D e c c a

45 Wall

bulletins

Ltd. and Provincial Transport Co.

New York

,

Company

Magnavox

24

—

page

study—Blyth & Co., Inc., 14 Wall
Street, New York 5, -N. Y.
McNeil
Co.

Machine

Analysis

—

—

&

Engineering

A. M. Kidder &

Co., Inc., 1 Wall Street, New York
5, N. Y. Also available is a report
on Heavy Truck Makers with par¬
ticular reference to White Motor,
Trucks

Mack

Fruehauf

and

Trailer.

r

Eurofund Inc.

Memorandum—

—

Glore,

Forgan

Wall

45

Co.,

&

Street, New York 5, N. Y.

.

ciation — Analysis — N e w
York
Hanseatic Corporation, 120 Broad¬

New York 5, N. Y.

way,

Memorandum

—

&

Hanson

Hanson,

—

Exchange

40

Linotype Company
3chweickart & Co.,
Broadway, New York 6, N. Y.

Mergenthaler

Analysis

—

29

—

Microsomes
John

—

Report

—

place, New York 5, N. Y.

National Mortgage Asso¬

Federal

Mercast Corporation

H.

&

du

Inc.—Memorandum—

Homsey & Company,
31 Milk Street, Boston 9, Mass.
Pont,

Monroe Auto

Equipment Company

of

Baird

Atomic,

Sys¬

Craig

tems, Inc. and Ludlow Corp.
Gold Mines Limited—Data

—Doherty Roadhouse & Co., 335
Bay Street, Toronto, Ont., Can¬
ada.

Also in the

data

on

same

bulletin

Pamour Porcupine

are

Mines

Ltd.

America—Analysis—Hill

Richards &

Co., 621 South Spring

Street, Los Angeles 14, Calif.
Bendix

Aviation

Analysis

—

Corporation

Reynolds

Broadway,

New

York

Also

available

are

Paso

Natural

Gas

and

an

&

Co.,
5,

reports

on

Y.
El

Company,

Corporation,
Cigar

and

Corporation

analytical

brochure

R.

Grace

Co.—Annual

&

re¬

port—W. R. Grace & Co., 7 Han¬
over
Square, New York 5, N. Y.
Aircraft

Grumman

Engineering

Corp.—Data—Purcell

Broadway,

New

Also in the

same

&

York

circular

Bank

of

on

National

Broad

are

data

York

—

Gooderham

&

d.—Analysis—McLeod,

Young, Weir & Company, Ltd., 50
King Street, West, Toronto, Ont.,

Peabody Coal Company.

Canada.

Borg Warner—Data in April Mar¬
ket Review—H. Hentz &
Co., 72

Hoover

Standard

Electronics—

Co., 44 Wall Street, New York 5,
N. Y.

New

-

15

Co.,

Memorandum—William Norton &

Polarad

Electronics

Herbert

Street,

E.

York,

Stern

New

available

a

Analysis—

Co., 52 Wall
5, N. Y. Also

York

is

—

&

bulletin

Chicago &

New

on

St. Louis Rail¬

road.
Polaroid

L t

&

Street, New York 5, N. Y.

National

—Pershing & Co., 120 Broadway,
New York 5, N. Y.
Walker

Co.—Memoran¬

Ristine

P.

50

Harshaw Chemical—Memorandum

Worts

B:scuit

dum— F.

Y.

Bulletin—Laird, Bissell & Meeds,
120 Broadway, New York 5, N. Y.

Hiram

Electrosonics

Harrison

N.

Hermes Electronics.

Hanover

H.

Inc.

Co.,
4,

—

120

N.

B.

on

W.

on

of

—Analysis—Fulton

particular reference to

—

Also available

Y.

of

Broadway,

Reid & Co.,
Inc., JLJnion Commerce Building,
rities & Co., 15 Broad Street, New Cleveland
14,
Ohio.
" f i\
Atlantic City Electric Co., Central York
5, N. Y. Also available is
Mountain Fuel Supply Company
Hudson Gas & Electric Corp., Cit¬
the quarterly review of favored
i—Analysis—Cruttenden, Podesta
izens
Utilities
Co., Indianapolis common stocks.
I
& Co., 209 South La Salle Street,
Power & Light Co., Union Electric
Friden, Inc.—Review—Alfred L.
Chicago 4, 111.
Co. and Utah Power & Light Co.
Vanden Broeck & Co., 55 Liberty
Multi-Amp Electronic Corporation
Atlantic Coast Line-Alico Land— Street, New York 5, N. Y.
Also
—Analysis—G. Everett Parks &
Analysis—Schirmer, Atherton & in the same circular are reviews
Co., Inc., 52 Broadway, New York
Co., 50 Congress Street, Boston 3, of Globe Union Inc. and four
4, N. Y. Also available is a report
Mass. Also available is an analy¬
Electric Utilities.
ities

Bank

Wisconsin.

Bache

Busch

Milwaukee 2,

Michigan St.,

Super¬

markets.

Street, New
Inc.—Analysis—
Meeds,
120 York 5, N. Y.
Broadway, New York 5, N. Y. Food Fair Properties, Inc.—Report
Also available is a report on Util¬ —Eastman
Dillon, Union Secu¬
Laird,

Aunor

Rico, San Juan, Puerto Rico.

on

Crompton &

Apple

Big

and

Knowles

reports

are

Douglas Microwave,

York

Over-the-Counter Index

a

Aviation—Report — Sim¬
Rubiri & Co., Inc., 56 Counsel, 25 Melinda Street, To¬
Street, New York 4, N. Y. ronto, Canada. Also available are

Dayton

New

is

MacMillan,
Bloedel
&
Powell
River
Ltd.—Bulletin—Financial

.

Amott,
Baker
&
Co., Incorpo¬
rated, 150 Broadway, New York

can

—

York.

Also

Co., 2

&

4, N. Y. Also available
memorandum
on
Oxford

New York

—

"ABC

data

I.

Co., 1 Wall Street,
New

—Goodbody

Avenue,

M e m odu Pont &

Continental Insurance

Lewis & Co., 63 Wall

For financial institutions only-

'

a

orandum—G.
& Telegraph

American Telephone

Consolidated

'

Refining

Droulia &

Co., 25 Broad Street, New York 5,

Transamerica

v

&
—

Smelting

Company

Also available is
list of recommended Common
Company.

vox

Anheuser

showing

Inc., and a report on Pacific

pany,

Kellogg

'

v':!C

Ferro

Manville.

Automobile

and

ration.

Utilities Co.

ment

Industry

Co., and Hertz Corpo¬

Comparative figures—G. A. Saxton & Co., Inc., 52 Wall St., New

situation and

the

New

Equipment
Analysis — Cohen,
Co., 25 Broad St.,

Photocopy

Company

are

Common

Utility

Public

Broadway, New York 6, N. Y.
same issue are analyses of
the Heavy Duty Electric Equip¬
In

26

Hickey,

Bulle¬

—

New York 4, N. Y.

way,

East

vestor's

Estimates

Railroad

1960

Shoe Industry—Review

India—Study—First National City
Bank of New York, 55 Wall St.,
New York 15, N. Y.
Japanese

American

New

Banks—Report on

Puerto Rico Water Resources Au¬

Detailed

—

outlook

Banks—Compara¬

—

Co.

Soya

King, Li-

baire, Stout & Co., 50 Broadway,
New York 4, N. Y.

tive

.

Central

&

31,

Neb.
New York City

15, N. Y.

Analysis —
Paine. Webber, Jackson & Curtis,
25 Broad St., New York 4, N. Y.
Also
available
are
a
study of
Growth
Stocks,
an
analysis of

N.

Omaha

Street,

•

Cement

Regis

Farnam

New York City

5 uranium stocks and 20
copper and base metals stocks—
Draper Dobie and Co., Ltd., 25

versal

3624

"Blue

14

Foundry

&

Eisele &

—

—

issues

stocks,

Canada.

Subdivisions
—Statistical
information
19591960
Storz-Wachob-Bender Co.,

partment, 16 Wall St., New York

outlines most

Machine

Analysis

Simonson

Review

—

Bowling

International

American

American

~

Municipal

Nebraska

circular are reviews

same

of Gillette

randum—Francis

Laboratories
—Report—Ball, Pablo & Co., 1000
Connecticut Ave., N. W., Wash¬

American Electronic

—

Burnham

621

Co.,

&

Richards

Hill

—

—Analysis—Ross- & Hirsch, 120
New
Broadway, New York 5, N; Y.
Wall

Handbook—The

Manager's
York

for
Your
Investment

An

Stock:

of

sis

ington 6, D. C.

Methods

Marketing

Vyyyyyy../ y-yyi

*

.-is

■

the

In

Chemical

phone Co.

Review

view—National
York

Electric

Tokyo

and

Corp.,

—-

Corp.—Analysis Continental Baking Co. —Review
—Fahnestock & Co., 65 Broadway,
—Auchincloss, Parker & Redpath,
New York 6, N. Y.
In the same
2 Broadway, New York 4, N. Y.
circular is a review of Magna¬
reports
Allied Radio Corporation—Analy¬

Engineering

Market

Letter No. 56—Comments

Atomic

available

Also

Mitsubishi

*

•

;

An¬

Los

Bank,

Analysis—Union
geles, Calif.
Allied

Aluminum—Survey with particu¬

Analysis

Dynamic Review—Van Alstyne, Noel & Co.,
40 Wall Street, New York 5, N. Y.

the

and

Trade

World

WILL BE PLEASED

MENTIONED

THE FIRMS

THAT

—

—

AND RECOMMENDATIONS
UNDERSTOOD

Corporation

Clevite

Put &
Herbert Filer

—

INVESTMENT LITERATURE

&

Thursday, April 14, 1960

Call Op¬
Gamble Robinson Co.
Hill, Darlington & Co., 40 Wall
tions
— Crown
Interchemical Corp.
Analysis
Street,
New
York
5,
N.
Y.
Also
Publishers. Dept. A-7, 419 Park
available is a report on Decca Orvis Brothers & Co., 15 Broad
Avenue,
South, New York
16,
Street, New York 5, N. Y.
Records.
N. Y.—$3.00
(ten day free ex¬
Combustion Engineering Inc. — Kawecki Chemical—Memorandum
amination).

DEALER-BROKER

IS

. . .

(1624)

Understanding

IT

Financial Chronicle

Commercial and

The
8

Review

—

—

Shields &

Company,
York

data

44 Wall Street, New.
5, N. Y. Also available are

on

Anaconda

Western

and

Union.
Procter & Gamble—Memorandum

Haloid Xerox Inc.

Wall

The

Company is offering 333,213 shares of Common Stock for

subscription

at

the rate of

one

share

at

$24 for each ten shares.

The offer will expire at 3:30 PM E. D. S. T. on

April 27, 1960.

Street, New

In the

same

tional
are

Distillers.

reports

Certain

Prospectus

on request

briefs.

Common Stock and

on

Teed

Airlines and

L.

issue

York

are

a

Also

y

TROSTER, SINGER & CO
Member New York

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400




Cel-

available

bulletin of Railroad

Hydrochemicals,
De

Witt

Teletype NY 1-376; 377; 378

Inc.—Bulletin—

Conklin

Organization,

Woodcock, Moyer, v, Fricke &
French, 123 South Broad Street,
Philadelphia 9, Pa.

—

t

Purolator Products

Inc., 120 Broadway, New York 5,
N.

Y.

tin

Also

on

available

Morrison

is

available

723

page

45

Knudsen

Com¬

Econ-O-V eyor *

—

is

a

memorandum

Powk.

For

Hebrew National

Compensating Balances?

Bowling Corp. of America

BANK LOANS ARRANGED:
Phone,

Write

Or Drop

Celanese—Memorandum—Gruntal

Ave.

&

New York
36,

Fifth

N. Y.

*Offering circular

Suite

1040

6-1912

on

request

PLYMOUTH SECURITIES

In To See Us:

CORP., Dept. CC 67

PE

Manufacturing

Standard

Existing Or New

500

Co., 50 Broadway, New York 4,

Commerce Drug

$10,000 to $5,000,000

INVESTING

York.

Co.,
on

bulle¬

a

CAN YOU USE

PRINCIPAL

New

&

Continued

Primary Markets In

C. I. T. Financial— Memorandum
—Goldman,
Sachs
Co.,
20
Broad Street, New York 5, N. Y.

Consumers

Inc.—Bulletin

—Dempsey-Tegeler

:-

Analysis —
Binday, Riemer, Collins & James,
Inc., 44 Beaver Street, New York
4, N. Y.

on

—

E.

Also

74

Y.

Analysis—
Chace, Whiteside & Winslow, Inc.,
24 Federal Street, Boston
10, Mass.

Carpenter & Company, Inc.
—Analysis—C a r r o 11
Co.,
150
Broadway, New York 38, N. Y.

Rights

Trading Markets.

N.

on

Burroughs Corp.,
Products,
United

Cary Chemicals Inc.

Firm

5,

data

Corp., W. R. Grace and Na¬

anese

Company

•

*

92

CORPORATION
LIBERTY

Dlflby 9-2910

STREET
•

•

N.Y. 6.

Teletype N.Y.

•

N.Y.

1-4530

Number 5942

191

Volume

.

.

The Commercial and
Financial Chronicle

.

(1625)
pansion

Significance of the Revised
Gehman,* Chief, Business Conditions Section, Division
Research and Statistics, Board of Governors of the Federal

By Clayton

Reserve

the

Keeping in mind the Cold War usage of comparative economic growth
data, Federal Reserve's business economist describes recently revised

of the last strike;

light on the longer run

that cyclical

economic

3'/2 to 4% growth
major revision of the
industrial production index
since 1953 was presented in the
first

FRB

.

"Bulletin"

Reserve

Federal

for

December,

the

indirectly,

release

three-fifths

The chief
FRB

omy.

related

output in

and business

January
would
be
at

atively

a n a

11-t i

ago

and

30%

of

a

Soviet

preme

report to tne Su¬

that

1959 industrial

production

1953

and that

increased

FRB

the

over

from

to

production in Rus¬

sia increased 90%
revised

About the

January, Mr. Khrush¬

chev stated in

U.

11%.

index

S.

The

rises

15%

annual average

same

consumer
are

portion

measure

in¬

On

over

the

noted

series

are

a

point

rel¬

a

of

our

based

on

pairs

based

covers

it

individual

for example,

ures,

businessman

on

all

the rise

30%.

was

from

the

It is

Soviet

not

report

whether the 11%
figure was used
because it was a smaller number
than 15% or
because of delays in
Russian information channels.

The average for the
also used

by

servers of U.

ing point

some

1953 is
domestic ob¬
year

S. trends

for

as

start¬

a

comparisons

though it included
War period.

the

even

Korean

produced
fected

are

cited partly to

indicate how
they can be used to
serve

political ends and
partly to

indicate the
in

growth

of

range

differences

between

two

major

countries in different
stages of in¬
dustrial

development.
Economic

ot

political

usetul

in

comparisons, freed

implications,

can

understanding the

be
in-

uuences at work
in growth devel¬
opments which in this
country are
g

eatly diversified.

P eciation

of

the

A keener ap-

vitality of

,can come from

,^e changing

de

goods

involved

Pr.0cess of

a

our

knowl-

variety

and

the

economic

of

end-

ad just-

country0 Various regions of the
some °f this diversity

as

?n trough actual and potenbUf
of Production indexes,
FRn
J some description of the
•

index and its
recent revision.

^scribes

Revised FRB Index
ProdiS 35 °^° of the notion's total
the outnn? K accounted for by
electrio
5 factories, mines, and
the nnrtf
gas utilitiesThis is
0divwhV°u-of ?he national econhy
dex

thp
'

-

k.ls directly

Anir+uUstrial

Another 25%

represented

Production
or

more

in-

of the




the

S.

has

satis¬

more

sales

of

elec¬

for

the

growth
been

country.

rate

about

for

this

10%

per

about 17%.
The businessman and the econ¬
averaged

omist need to have
of seasonal

purpose

goods

a

clear notion

patterns for two broad

One of these is for the

of

studying markets for

and

planning sales and
production schedules—in order to
know

understanding of

the

timing and amount of

amplitude in seasonal fluctuations.
The second purpose is to be able

Many are familiar with
in tourist travel from

to eliminate the effect of seasonal

the swings
to

summer
and with the
efforts to reduce these swings
by
such
devices
as
reductions
in

can

experience, either on
an
industry
basis.

residual

non-

may

any

physical

which

are

usually be made for seasonal
influences and, of
course, there
still remain differences in
ampli¬
tude
of
fluctuations from
one

product

point

to

another.

being

made

output trends
downside

on

tend

We have

in

an

The

here

the

to

goods subject to
influences.

be

similar

common

%

various monthly indexes
output of major ; household
goods. These are available for the
our

whole postwar period and show
seasonally adjusted monthly fluc¬
tuations in output of furniture and
rugs, on the
one
hand, and of

appliances,

television and home
radio sets, on the other. It can be
seen that the
range of fluctuation
from top to bottom is

larger for

the

more

volatile

.

fr'V':-

::

finished

process

goods.

trated

graphically

chart

distributed

as

This

in
with

well

improving

declining

or

movements

are

other.

Continued

,

illus¬

the

flow

the

An
on

,

■

■

■

'

'

'

$5,000,000

,

De¬

due

the broad left-hand panel of that

diagram
nearly
100
individual
major
series
are
shown
and

separately for

"

514% Subordinated Convertible Debentures

cember issue of the "Bulletin." In

grouped

'

minerals,

utilities, and manufactures.

April 1, 1975

Convertible into Common Stock at $9 per

Share

Price 100%

■

,

The

Plus accrued interest from

size of the boxes shows the rela¬

April 1,1960

economic

importance of the
series in the year 1957.
Under
metallic
shown

minerals

to

flow

iron

ore

is

to

728,531 Shares

pig iron,
to steel ingots and castings, and
through various metal parts to the
over

Common Stock

finished

consumer and equipment
products shown in the right-hand
panel. These final products are

measured

(Par Value $1 Per Share)

,:

separately in the index

Price $7.50 per

by 109 series.
As mentioned

monthly and this can
strategic
importance
in
analyzing cyclical changes. The
index is available historically in
detail so that it is possible to see
changes in any combination of
months in relation to any other
time period back to 1919.

Copies of the applicable Prospectus may be obtained in any State only from such of the several
underwriters, including the undersigned, as may lawfully offer the securities in such State.

of

As

In

Fast As

Share

earlier, the index

is calculated

be

White, Weld & Co.5
Harriman

J. A. Hogle & Co.

Ripley & Co. Smith, Barney & Co.

Incorporated

Booming '20s

the

Hallgarten & Co. Hayden, Stone SC Co.

light of the current in¬
it
may be noted that industrial ex¬
pansion during the postwar period
has been about as fast as during

Bache & Co.

the

Shearson, Hammill 8i Co.

Stone & Webster Securities Corporation

Hemphill, Noyes & Co.

terest in national growth rates,

booming '20s.

decade

industrial

creased

mands

early

Over the past
output has in¬

two-thirds with de¬
sharply stimulated in the
part of the period by the
by

outbreak

of the Korean

War and

a
stepping-up
of defense ex¬
penditures by $30 billion per year
in the 1951-52 period.
The rela¬

tively

more

rapid

postwar

ex¬

Francis I. duPont & Co.

G. H. Walker & Co.

Shields & Company

L. F. Rothschild & Co.

Baker, Weeks 8L Co.

Blair 8C Co.
Incorporated

E. F. Hutton &
.

•

Company
•

H. Hentz & Co.
•

-

'

McDonnell & Co.
*

•

Burnham and Company

Incorporated

Emanuel, Deetjen & Co.

Debenture offering: White, Weld <& Co.; Stock offering: White, Weld A Co.

Van Alstyne, Noel 8C Co.
Incorporated.

for

one,

generally

New Issue

as

is

'

ap¬

pliances than for furniture. But in
periods when business is

those

activity in

I

.•

of

area

Diego Imperial Corporation

by price changes.

for

demand

illustration of this

April 8,1960

San

that

upside and

an offer to sell nor a solicitation
of an offer to buy
of these securities. The offering is made only by the applicable Prospectus.

af¬

main

is

for

steel,

not

or

Allowances

meas¬

that

means

national

product

a

This announcement is neither

be

pos¬

business

must

similar for the

the

of

range

performance against the

the

interpret

indus¬

groupings

make to gauge their own

and

seasonal movements in

the

sible comparisons which
units

fluctuations in order to determine

materials at all major stages in

In my
presentation I would like

tiai

such

since 1947, while for Florida

year

it

probably few places

component

on tons of

fluctuations

the production

tive

These figures

.

the
are

the impact of seasonal movements
on business
developments than in

winter

that

textile

or

various

of

monthly

in

U.

series-has

in the United States where there
is a better public

Florida.

for

total

purposes.

tervals, while from the latter part
Secondly, the
index
directly
1953, after the end of the Ko¬
represents production fluctuations
rean
War,.to the beginning of this in
year

the

The

For

and

of

evident

and

Seasonal Fluctuations

shoes, and the number
gross weight of motor trucks

and

month

periods.

economist these fluctuations
three main types:
First,

are

greatly widen

These

of 41 years.

span

first

that

to

with

chemical

com¬

were"

common

for home furnish¬

ings, as well as to group them by
type of industrial process such as

of electronic

series

as

as

try.

the way in which the use
of
residential electricity has
grown
in the State of Florida
compared

fluctua¬

by

markets such

have

found

re¬

FRB
index
for
use
in
seasonal and cyclical
analysis is a
rearrangement of the 207 individ¬
ual production series

we

we

feature of the

new

vised

(3)
it is
and (4) it is

monthly,

available

April 1958 low point.
middle

for

which

use

stable

compiled

the

above

provided

quantity series, (2) it
stages
of
processing,

Clayton Gehman

its

of

There

use

index

tricity for residential uses.
We
have developed such a series to

the

physical volume

12%
year

are

summary it might be said
that the unique aspects of the
pro¬
duction
index
are,
(1)
it is a

probably be
a

in

In

level will

albove

in¬

the

use

in

month

longer-term

both

economy.

m e

is

over

of

revised

see

in¬

the private and public

are

services

high. This

about

is

nation's econ¬
The major activities not so

was
indicated that

it

such

the national

major

.

factory for series that are not
subject to sharp cyclical changes

analytical interest in

index

from

•

the

or

Cyclical Changes
A

in the
the

calculations

more

be understated by

may

supply

as crop har¬
from demand
the Christmas
•

Generally

seasonal
movements; second,
directly cyclical movements; and third, the
growth
movements.
to about

related

of

of produc¬
industrial sector

the

currently available data on
trade,
inventories, and
Consequently, the

economy

industry.
Al¬
together, then, industrial produc¬
developments

revision sug¬

existing figures.

construction

December fig¬
ures,

activity

distribution

the

as

produc¬

of

putations to develop more season¬
ally adjusted breakdowns which
should increase the
possibility of
business use of these measures.

volume

total performance of

a

dustrial products and their
the

and

January
of the

our

in

of

the

outside

retail

the

economy's

tion

in

and

1959

total

old

prices indicate.

per year.

volved

the

In

factory output to more
comprehensive census lev¬

Results

tions
The

of

also has probably increased
than

growth

wherein consumer goods output prior to and since 1953 has had

adjustment

as

influences such

and gas util¬

tested the

tion

keeping national

of

process

rap¬

well

as

in

because

developments, such
vests,

mainly

els.

industrial activity up. Mr. Gehman also points out how the revised
index sheds

the

fluctuations
arise

can

trade.

gest that

downward changes stem from excessive expansion in periods of busi¬
ness boom and upward swings from quick consumer goods revival;
and that consumer goods production and institutional personal income
stabilizers have become increasingly important in

include

Seasonal
tion

ities. The remaining two-thirds of
the
upward
revision
reflected

recent

that the strength

inventory building in anticipation

the

series for

during

booming twenties—heretofore understated in the old FRB index;
of the present recovery cannot be attributed to steel

the

coverage to

business analysis it is possible to
calculate their usual range.

higher
broadening of

a

or

the
particular
industry
national economy.

to another and for the
purpose of

reflected two
of

idly growing electric

41-year-old FRB index of physical production, He also shows the
changing diversity of our economy as revealed in the production
indexes. The author points out the revision indicates that the postwar
as

summer

due to

was

trade figures are
predictable from one year

fairly

One-third

during the off-season.

Patterns of seasonal fluctuation
in production

from

The margin of difference
of 8%
the old index and the
new total
before the steel strike

level

fast

tourist rates

between

factors.

as

production

1950 to 1955.

began last

System

World War II industrial expansion has been about

industrial

period

Industrial Production Index
of

in

is depicted by the
recently revised
total index for the

9

exceppage

30

Financial Chronicle

The Commercial and
10

.

.

.

Thursday, April 14, 1860

(1626)
Some Abuses of the

Uses, Misuses and Abuses
Of Our Money and Credit

lore

_

By Dr. Gabriel Hauge,* Chairman, Finance
Manufacturers-Trust Co., ISeiv York

fables

thick

disturbs relative val¬

and person,

that runs as follows: since
ues and prices, confuses economic
in a man's pocket makes
him rich, then just putting more planning, cuts savings, and redis¬
tributes incomes in ways unrelated
money
in everybody's pocket
makes
everybody that much to economic efficiency or social

myths.
In agreeing with the Quantity Theory of Money, Dr. Hauge cites
harm caused by inflation, attacks illusions held by perennial cheap
money advocates, and shows how cheap money policy would ad¬
versely affect our balance of payments and imperii our dollar as a
key world currency. Critics of independent central banking system
and flexible monetary policy are criticized for being unable to
achieve a large budget surplus in boom times and to offer no real

Stripped to its bare bones,
this folk myth is the logician's old

richer.

current

easing of

rates be used

as

money

an

market

excuse

for not

evitably force prices up, lowering doing what logic and fact dictate
the
value,
or
the
purchasing The best time to repair a leakv
roof is not when it's
power, of the dollar. Inflation re¬
raining, but

money

in current and recurrent monetary

cies said to be contained

Unrestrained credit expansions in¬

Like most myths, the money
embody a kernel of truth
husks of fiction.
None pudiates long-range commitments,
disrupts relations between person
sounds more reasonable than the
ogy.

in

story

City

President Eisenhower exposes falla¬

economic assistant to

Former

Committee,

its quantity.

varies inversely with

Currency

American folk¬
is rich in monetary mythol¬
Money:

More

to aggravate

It tends

priorities.

economic fluctuations, to

encour¬

of - composition: what is age speculation, and to retard
true of each of us separately, must
long-term economic growth. Ex¬
be true for all of us jointly. Ac¬ cessive multiplication of the money

fallacy

when the

sun

is

shining.

Enthusiasts for perennial
cheap
credit and loose money tend to
confuse the value
its

price.

into

the

of

error

inflation

rency

of

money with

Accordingly,

they fall

advocating

as

a

means

cur¬

of

suring low rates of interest.
value

of

money

reduced

by

supply.

The

can

usually be
the money

inflating
price

*

as¬

The

of

money

is

another

matter; it is the rate of
interest, which depends on the de¬

all supply does not enrich but im¬
mand
for
and
supply of loan
other to; poverishes a nation.
funds. Inflation of the money
Scottish
sup¬
Lower
Price for Loans: In a
variant, by taking in each other's modern version of yet another ply may raise the .demand for
alternative for stability and growth.
loans faster than their supply, and
washing. This myth has a surprise medieval
monetary myth,
dear
and
the life
of the society.
It ending: the horn of plenty turns money is the villain of the piece. cast shadows on the future value
My purpose is not to discuss bank¬
of
out to be a printing press, or the
money,
forcing the price of
serves in
its way as the coin of
Cheap
money,
or
low interest
ing, but rather its stoek-in trade,
more
loans to rise. History tells us that
sophisticated versions of
rates, is the hero who rescues the
money, which is much loved but public conscience.
modern
greenbackers.
Everybody

understood.

well

less

about

talks

of

most

would

us

to

like

something

do

about it. Con¬

troversies
the

over

of

supply

currency, con¬

of

demnations

de¬

usury,

for

mands

echo

credit

down the

ridors

cor¬

of

tory.

Dr. Gabriel Hauge

currency
discussions re-

1

ancient

an

ring.

and problems remain
man

In

remains the

issues
familiar, for
The

same.

,

defiance of

history and cur¬
rent events, many still cling to the
views

of

frontier

societies

and

subsistence

economies, where
money was a mere accounting ar¬
tifice, a trading convenience. In
a
backward ecOnoipciy, production
and barter

and

so

measured in goods,
expression, 'It's o$ly

are

the

money," represents a harmless be¬
lie1, and is partially true. In our
wo id,
however, such a lighthe. ded

view

is

obviously

false.
Money does matter. Spendthrift
soc eties
are
quickly disowned.
Care for the currency is a price
foi

survival.
Uses

Money

of the

is

it

is

the

more

house drudge.

degree

a

Currency
instrument

than

a

an

mirror.

impdrtant

The

way

litical

The institution of money, more¬

underpins personal freedom
a complex society.
It serves as
impartial
arbiter
of conflicting
desires. It smooths voluntary com¬
over,

in

promise between buyer and seller.
It

agreements on per¬
obligations. It is a store of
security and personal independ¬
ence.
It multiplies choice.
With¬
out the agency of money, a com¬

state

expresses

sonal

of

relations

that

some

of

a

reflects

the character

of its people, their quality of mind,

of large numbers.

theorum

Arfdther

and

master

guided

inflexible

Many
money

by

and

servant

complicated

and

rules.

are

these vital

system.

uses

of the

Inevitably

there

misuses and abuses, the result

are

of

public

misunderstanding.

some

of them

income.

It

is

is

another man's

also

a

stimulus

to

borrowing, with anticipation of re¬
payment in depreciated currency,
and

therefore likewise

a

boon for

investment.

Gross

private

of

Money
The

value
of

was

the

domestic

third

always

go

This
New Issue

of

almost

money,

have believed that domes¬

policy could be designed with¬

out

for

concern

international

re¬

via our balance of
payments. Now the plain fact is
emerging that our actions have

percussions

world-wide

consequences,

which

must take into account in for¬

we

mulating domestic plans and pol¬
icies.

Some, in their haste for correc¬
tive

demand for

resources

is

the community is will¬ meal solution. Defensive reactions
retrenchment
in
some
ing to spare from current con¬ through
sumption. Credit restraint is the categories of overseas effort would
main

like

anything

the

else,

means

of

limiting total in¬

vestment demand.
rate

A low interest

ceiling, at which the demand

partial

offering is made only by the Prospectus.

for

April 13,1960

and
efficient techniques
rationing available credit. Set¬

ting the price of loans below
ket

initiate

a

long chain of repercus¬
At the end

sions and retaliations.

might be little better off than
at
the beginning in our deficit
position, and much worse off in
every other respect.
"

we

Correction

of

imbalance

an

mar¬

through a growing volume of trade
levels destroys capital markets is
infinitely better for us and for

by drying

126,000 Shares

Others
tic

action, still fail to give proper
weight to the close interdepend¬
not to exceed their supply, forcing ence of miltary aid and economic
prices to rise.
The level of in¬ aid, of aid and trade, of invest¬
vestment
cannot
with
impunity ment and exports, of exports and
persistently exceed the share of imports., There can be no piece¬
the total

vastly exceeds their sup¬
ply, forces lenders to use less im¬

a

rates

resources

Supports Quantity Theory

value

spring.

record.

the investment

tP

highest
same abuses and the same results
in history.
If interest rates are
has
a
somewhat
different
plot.
high, therefore, it is because the
This is the "a little inflation is
demand for loans is large and in¬
good for the country" fable. Less
sistent, not because the supply is
naive than the purchasing power
stingy.
As long as we remain
fallacy, it recognizes that overexhungry for capital and reluctant
pansion of the currency will raise to save
enough, interests rates will
prices. But so what, if paychecks
be high.
keep up with price indices?
Ex¬
Investment must be kept within
pectation of rising prices is a stim¬
the bounds of available savings if
ulus to spending now, and
one

It

be worth examining whence

may

leading

myth

for loans

Not

interest

rising

thrives despite the fact that con¬
low; quite
sumer
demand has demonstrated the
contrary, interest rates are responsibility commensurate With
government that pays its exceptional strength even
lowest
in
recessions.
Nor
does in¬ our power for good and ill. Our
in
debts in depreciated currency vio¬
slumps. The fears are so contrary vestment dry up because interest honor and reputation are staked
lates
a
social
compact,
setting to fact that
they would probably rates are high; rates are highest on the value of the dollar, who¬
group against group, and the peo¬ be
So, for that
repudiated by their gloomy in¬ during booms. The rate of interest ever may hold it.
ple against itself.
Whoever acts tellectual godfathers, among them is an
effect, not a cause. Investors matter, is our international li¬
to debase the currency robs us all.
Malthus and Marx. Yet the pur¬ borrow because they foresee prof¬ quidity.
•
:
A society that cannot manage its
chasing power fallacy persists, for itable opportunities, not because
In the past, many believed that
money cannot manage itself.
A it holds promise of a panacea for loans are
cheap.
we somehow could export forever
country unable to defend its own
poverty and unemployment. More¬
The dollar value of new con¬ far in excess of our imports, and
currency is not well qualified to
over, it is congruent with the po¬
struction in 1959 set an all-time thpt we were the better off for it.
lead others.
'

counting-

Money is to

nation's monetary system
in

popular

plex society would have to be
powered by the personal, coercive man's
spending

helps accomplish the world's work.
But

from stagnation and de¬

economy

belief reappears
along with inflation.
cline, providing high and rising
slightly disguised as the purchas¬ incomes and full
Isolation of the Dollar: Another
employment too.
ing power fallacy. It lurks behind
There' is some truth in this se¬ fond illusion, that the dollar is a
history of mankind. A personal
nearly every demand for increased
domestic concern, and no. foreign¬
check declares that a man is as
quence, in particular its focus on
public spending and a money sup-1
investment.
For stability of pri¬ er's
affair, has just suffered a
good as his word, and that others
piv enlarged beyond the needs of
demise.
With foreigners
vate investment is vital to eco¬ violent
accept his word as his bond. Coins
a
healthy trade and commerce as
of old bore the monarch's seal,
nomic
stability.
In
conjunction now holding more than $16 billion
the panacea bringing full employ¬
and often his likeness, attesting to
with
private
consumption
and in short-term dollar obligations,
ment,
high incomes
and
more
their weight and fineness.
we
are
Now
naturally concerned over
rapid growth to boot. The under- public spending, it determines the
every man is king.
Even as psy¬
the state of their minds, and their
level of economic activity.
consumptionist fear, that over-all
chologists gain an insight into a
consumer demand cannot
sustain > The cheap money fallacy, how¬ diagnosis of the state of our eco¬
man's personality from the way
nomic and financial health. Now
high levels of output, is usually ever, mistakes effects for causes.
he handles his money, historians
at the bottom of this notion.
It Investment does not surge when¬ that the dollar is an international
can
weigh nations by how they
reserve currency, we must assume
ever interest rates are
This

The

sense

tain

of

handle their currency.

his¬

that

In

The rise of credit as a means

payment is one of the most revo¬
lutionary advances in the moral

and

money,

cording to one version, we can

get rich by taking each
the cleaners or, in the

up

sources

which

some areas

are

of funds. In

the

inhibited by

trade curtailment. The President's

world

correction

than

via

legal interest rate ceilings, credit

emphasis on increasing exports is
unquestionably the soundest over¬
placed at the doors of all strategy toward our balance of
the central bank; the ceiling itself
payments problem.
In fact, the
is at fault.
Loan
funds,, unlike expansionist solution is impera¬
water, seek their highest levels; tive. Much of the
past growth in
becomes

cannot

short.

But

the

blame

be

they flow from the mortgage mar¬
ket and from long-term govern¬

corporation

ment

bonds

to

areas

offering

higher returns.

Common Stock, $1 Par Value

In

1951,

with

the

Reserve
ary

of

Price $45 per share

following an accord
Treasury, the Federal

abandoned

the

the

practice

Copies of the Prospectus
other underwriters,

dealers in




be obtained from the undersigned, and the
which they are qualified to act as
which the Prospectus may
legally be distributed.

may

only in

securities and in

states in

rate

of

flexible

&

Co.

These
are

foreign-held dollar assets
sword aimed at Fort

not yet a

Knox.

But

should

misguided en¬

thusiasts of low interest rates have
their

yields

way

in

and
our

should short-term

markets be

money

retaining the 4%% interest driven appreciably and persistent¬
ceiling on government bonds ly below rates in other leading

herald the first backward step to
pegging the market for govern¬
ment

F. Eberstadt

solution, some of these
foreign holdings would surely be
repatriated.

inflation¬

monetary policy for economic sta¬
bility.
Current partisan outcries
for

Should we attempt a pro¬

merce.

tectionist

policy of supporting the prices
government
bonds, and
re¬

sumed

foreign-held dollar assets was re¬
quired tp finance a growing com¬

bonds.

Some

would

go

all

money
centers,
we
could lose
enough of them to create a prob¬
lem.
Our
monetary
authorities

the way, setting a ceiling of
2Y2%,
forfeiting control over the money

need

supply and thus

foreign
held
dollar
assets. To
deny them that right in the name

over a.key factor
influencing the level of prices.
Certainly we should resist such
back-sliding. The 41/4%
ceiling

should

tially

be

eliminated

modified.

Nor

or

substan¬

should

the

the freedom

to

pursue

pol¬

icies that take into account these

of

some

obsolete

depression dog¬

cheap money would be
height of irresponsibility. If

ma

of

dollar

is

to

continue

as

a

the
tlie
key

Number 5942

191

Volume

The Commercial and

...

.

Financial Chronicle

(1627)
„orld currency, it must be
med to command trust,

bespeak

per¬

work

flecting

".■•vile
■

Central Bank: This
to another line of mone-

us

mythology. I refer to what
the conspiracy theo¬
ries
According to one, the Fed¬
s'Reserve System, being run by
hankers, conspires to keep money
? ,ht force up interest rates, and
tn banking profits Alternafvely, it id Charged that the Sys¬
tem's conservative business orien¬
tation leads to
excessive- policy
o cern
for price level stability,
without regard to the level of em¬
ployment.
Like all -conspiracy

Commission's

be

hearing,
that

matter,

the

that

cultivated

and

its

its

But

we

cannot

wait.

use

until

all

facts
be

the facts

are

made

the

on

information.

are

in.

never

basis

It

in.

of

BY

CARLISLE

the

two attribute enor¬
powers to our monetary au-

theories, these

down

existing
function

*An

in preventing
restraining booms.
Temporary high interest rates are
incidental to this purpose.
It is
stability in our economic growth1
national

sue ess

It

that aids long-run average

of

by

Dr. Hauge

Commerce

of

before

the

the

State

fied

before

the

of

committee

NYSE Slate Is

'A /

/

work

among

groups

some

One of the matters

run.

election

in the autumn

the

be

unpopular
in the short

J

If credit restraint

bank.

/A/yAAA

of flexible

Foes

;!v

also
the

Mr.

alternative

measures for stabilitygrowth.; They have proven
unwilling or unable to entertain
the hypothesis
that
overpaying.

and

•

nomi¬
to

the

Perhaps
current

these

and

r

oo

k

s

,

Thomson

.&

Mc Ki

n;

n n o

•

*

ago/
no

after

Lovett

of

action and

Whatever
has

cur¬

consequences

on

our

; ;

amount

currency

nominated for

three year term.

a

g

was

that

are

been

Mr.

quite

Eisen¬

active

in

not

at;

was

The

90%

President

of

the

Presidency.
50

was

odd

parison

is

fair,

Truman

attendance

Director

of

of

the

and

the

the

after

the

are

Chairman

of

:

these

•

of

...

misinformation

Names Merieka
William

J.

Merieka

A?

w,./..

'

and

credit

may

be

symPtom of progr mtsinformation is not

orance, but

a

sign of interest

lQawarJness. Much remains to
be riprne+
al*
us* More must
our hS 1° clo?e the §aP between
of
lr knowledge and the level
°t
public
hp

n

of the

New

Lionel

Pincus

I.

Whitlock

to

York

Stock

and

Daniel

P.

P.

proPosed

m

a

talking about

person, or any living

.Cuba
and

n

This
to-

are

sessions.

confined

•

should

•

Econom
Cnom'6

Committee
committee
riDTT^i.v,,

t^unomip

for
stepped

r\
n

N

d

if '

J.

Merieka

land

&

Co.,

securities

,

into twt Development
tional pf
a^ '• sponsoring a NaCredit Commission on Money and
pected

nVp +°S e bindings

that thi«j
plish ms

by

thP
e

n

yea^' -We

Commission

p
°., what
Resident's

are
can

are

of

the

to

major

be

one

of

"restraint

It :

did

not

ambassador should be called home
for consultation.

"President

A/A/;

Eisenhower

•

is

offered policies which have

announcement

buy

any-

is neither

an

offer

to

:)

not

been

sell

City Bond Club in

the

Sky

will

Blue

annual
at

nor a

the

Waters"

We

rows

has

become

John Nuveen &

Salle

—

solicitation of

Bear

an

offer

oj these securities. The offer is made only by the Prospectus.

$3,000,000

New Issue

due September 1, 1975

Issued

as

coupon

per

Share)

Debentures registerable as to principal, in denomina¬
registered Debentures without coupons
of $500, $1,000 and authorized multiples of $1,000.

tions of $500 and $1,000, or as
in denominations

Price

100%

Copies of the Prospectus

may

be obtained from the undersigned.

to

Street.

Alien 8C

Oliver K. Burconnected

with

Co., 135 South La

t of W m.
a

Cleve¬

Company

"Land

of

hold

its

outing June 15th and }16th
White

and

With John Nuveen

e n

Inc.,

MINNEAPOLIS, Minn.—The Twin

partnership. A

ex-

was intended
proposal.




York

b er,

Twin City Bond
Club Outing A

(plus accrued interest from March 1, 1960)

1st, will admit John R. Moore

bopeful CHICAGO, 111.
accom-

New

o v e m

firm.

LOUIS, Mo.—Newhard, Cook
Co., Fourth & Olive Streets,

members

Merieka,

Van Norman

1956, is Presi-

•William J. Merieka

partnership.

Midwest Stock Exchanges, on May

who

Director since

April 13, I960

To Admit Moore
&

Mr.

a

One

determine the tactics of when the

Newhard, Cook Co.
ST.

Hess,

retirement.

at¬

was

forebearance."

c,

a

suc¬

Donald

scien¬

are

nt Eisenhower

in 1957
broad inquiry
credit
+natlonal monetary and
IndeneiS +m' to be conducted by
ltv lenH enu- exPerts. The majorattemnlG?hlPiin Co^ress resisted
on
Place such an inquiry
the Pi*o°^Pa^isa.n
osan looting
tooting and so
so
Fortunnt i
ifine initiative died.
into

tries,

He

ceeds

understanding..

wkpi?

of

Norman

recently

policy matters. The NSC does not
deal in tactics^ It decided, for ex¬
ample, that U. S. policy towards

A

May 1st, will admit

on

of

Board

announced his

(Initially convertible into Common Stock at $4.75

Exchange,

been

the

Inc.

briefings rather than the

Issues

his

Admit Partner..
members

has

Chairman

Indus

6y2%~ Convertible Subordinated Debentures

Ladenburg, Thalmann & Co., 25
Broad
Street, New. York
City,

■

elected

Van-

Highway Trailer Industries, Inc.

Thalmann to

.

:

of

-

Ladenburg,

of

of

Sixty nine were present, includ¬
ing 29 committee members and a
second echelon of staff A
V

•

7

Van Norman Ind.

presentation of the
Gaither Committee defense report.

A

outbreak

the Korean War.

the

Chiefs

President's

NSC

com¬

in regular

was

the

of

Budget,

Joint

Meetings

usual, routine

said

The

however, be¬

by 12 persons, not 75 as
reported. .There are rare excep¬

tions for

.attended

percent.

not

Mr.

cause

has

meetings during his
Mr. Truman's record

tended

testified

the /outset

He said he

particular

the

next

Council.

members

include

tific-adviser.

7,7
;

statutory

the

gence Director.

„

rpJnCSUlagil?g.
ic^

he

for

opened by a
Central Intelli¬

.

our

well-being.
The

has

Chairman
Staff

;

re¬

reac¬

do to

we

moral, social, and political
affairs,
J Si
impact on our economic'

n

clear

after
some¬

is

the

recurrent

■

rency

is

and

,

,

Atomic

the

the country
editorial has

McCarthy,; Mer¬
;&

monetary
Alexander
R.
Piper, Paine,
myths and
currency abuses help
Webber, Jackson : & ; Curtis,; was
demonstrate that the
currency is
head of the nominating commit¬
as
complex as the society it serves.'
tee.".; ;'>••,.■ X. ; ;AA/A/,/.>:A 7
:
Manipulation of the
money supply
The Exchange election will be
and the rate of
interest is subject
held May 9.
to
7:7..7;
many laws of
tion,

he

meeting,

that the matter be

meeting
from

these
hands

later

papers

Energy Commission,
the Secretary of the
Treasury and

;

: \

had

Its

the

•

Lynch,Pierce, A Fenner
Smith, Incorporated, was also

illustrations

if

„

National Security

usually

testimony that he was testifying
from motes gathered eight years

rill

!

lightened

Each

report

it

Director of Civil Defense Mobili¬
zation. Other participating officials

that

Senator'; Fulbright

it'/clearr;,

were,

by

NSC

in

that

at

agenda
.,.

President, Vice-President, Secre¬
taries of State and Defense, and

soul." ■AEdward
C. Werle
7//'•■:' A' ■Stephen
A. K os h I a n d ,
A
■* ( -7aA
: "Y
reading
of ;;the
transcript
ourselves for the work we do has.
Carl
M. Loeb, r Rhoades & a Co.; before; the
Foreign 7 Relations
something to dp with inflation. Robert J.
Lewis, Estabrook &>Go.; Committee, just available, shows
They have contributed little /t° John J.
Phelan, Jr., Nash & Co.; that Mr; Lovett said that the Na¬
letting competition range more:, Edwin H.
Stern, E. H. Stern •* & tional : Security
Council
cannot
actively over many key sectors.of Co.; Charles P.
Cooley, Jr., Cooley
our
economy.
They harp on the * & Co.,-Hartford, Conn.( Williamneglect of fiscal policy, but show
; C. Roney, Wm. X. Roney & Co.,
no readiness
to run large
budget Detroit; and J. Robert Shuman,
surpluses in boom times,
.They Shuman, Agnew & Co., San Fran¬
provide no real alternative.
AA
cisco. Michael W.
;

facts

hower
the

-

Conclusions

are

Lovett, pursued by Senator

The

in

anything to this effect. He was
testifying on the subject of na¬
tional policy machinery. He made

Richard M.
C

the Presi¬

talking about Truman, Eisen¬
hower, or Abraham Lincoln. He
was
simply discussing his general
philosophy of government.

over

not the truth.

/-/-Mr,

Exch. 7

board,

-

not

the

meeting.

/

-

not

statement of Senator Ful-

editorial

A What
was

American

AAA nated

monetary pol¬

it have done little to
encourage.

was
.

J; Also

debates

been written about it.1

formerly

Stock

This

and

Chairman of

icy and critics of undue reliance
on

•

bright's went all

Werle

C o.,

&

some

•

•

.

to

Fulbright, made it

"In
executive
session
he
indicated
his
belief
that
the
President., leads
a
dangerously
sheltered life as-Chief Executive

Exchange, precede policy decisions."

in Scheff-

meyer,

marginal activity for the sake of
stability, then the solution does
not lie in a captive central bank
compelled to pursue inflationary

policies.

Stock

Werle,
a part¬

ner

times

in

York

who is

well
central

of active business must limit

New

Mr.

may

of £ our

integrity

the

at stake

put

agreed-upon papers re¬
his
approval
or
rejection. 7/7AA;'"Ar:;\x/

:

President; from

often

policies

and

issues.-

quiring/only

for economic

low

is

restudying the
on

joins

makes

few

to

offered

;.
major share of the battle
stability. Its contin-^ Edward C. Werle has been nomi¬ of the nation. For he
said, the
ued independence is essential- if nated for the third time for Chair¬ National
Security Council protects
it is to have the freedom to fol¬ man of the Board of
Governors of the
borne a

decision

a

members

aides, not protected by them. His

>;

Announced

The Federal Reserve System has

the

of

sometimes

itself

debated in front of him. The
President must be informed by his

his

profits.

at¬

mass

,

subordinates:

He

>

times suggests

disservice

a

a

dent, he said, if these issues

York, New York City, April 7, I960.:' executive session that the Presi¬
dent
was
: a
captive > of

New

many

confine

policy

is

in

not

*

address

Chamber

by

of

it' should

major

4

recessions

properly

mosphere

r

.

board

President

sometimes

is

now

which they do not have.
The Federal Reserve Board
does
not set interest rates; it has some
influence on the supply of credit our international balance of pay¬
Several' weeks ago Robert A.
through the volume of bank re¬ ments position.
Progress on • any Lovett, Wall. Street
banker, life
or
all
of
these fronts means prog¬ long
serves, but little control over the
Republican, for 30 years a
ress toward a
demand for credit..
healthier, more vig¬ friend of the President, Underorous and
equitable economy. That Secretary of State and
Any business prefers a steady
Secretary
demand and a stable price for its is a goal worthy of exertions by of Defense under Truman, was/
us all—both the takers of
products to widely fluctuating de¬
private represented on the floor:, of the
mands and prices.. The banking, action and the makers of public Senate
by
Senator
Fulbright,
Chairman of the Foreign/Rela->
•*,
\
business is no exception. Its profits policy.
:
tions Committee, as
will benefit in the long run from
having testi¬
thorities

The

debates.

must

clear that here- The
326th session of the
National
we must seek by
every •Security Council in this
adminis¬
means open to us to widen
public tration was held
recently. Presi¬
understanding of the role of money dent Eisenhower
presided. It was
and of its price in our
society, to his
296th
session.
This
means
establish clearly the essential link
nothing except in the light of
between a
currency of integrity recent criticism that Mr.
Eisen¬
and our national economic health
hower did not know what
was
and morality, and to dramatize the
going on, that he was kept in the
vital connection between a sound
dark
by his subordinates who
monetary and fiscal policy and wanted to protect him/
and

planning

or differences of
opinion. These splits are formally
presented, all sides are given, and
each man speaks his
piece.

...Ahead of the News

con¬

All

Sixty-six

have had "splits"

decision

Policy

in advance.

upon

percent of all papers prepared

the

abuse

Vital

troversies will not abide

agreed

FROM WASHINGTON

re¬

cur¬

avoided.

might call

mous

the

attitude

an

does

rency
must

tary
ve

for

fair-minded

a

11

Van Alstyne, Noel 8C Co.

Yacht

Club.

Financial Chronicle

The Commercial and
12

*

^

*

*

*• ^

*

«

* v *

*

JlI- JL 4.

him, to recognize m short, that
in investment one man's meat may
be Inother man's poison.
Even mere enumeration of at¬
tractions and hazards which vari¬

to

Opportunities

Investment

In the Bond Market

types of bonds may hold
various types of investors is

ous

of bond

"history and politics
argue against indefinite continuance of today's high yields." Profes¬
sor Mayer compares three interesting aspects of today's situation
plunge, but may not remain too long as

with earlier eras of bond investment

third of

a

the selection

1*

r: t<

.

Short Maturities

striking consequence of the
rise of yields has been a marked
change in the pattern of Federal
Government
bond yields.
(See
'Table II.)
Yields have risen all
One

popularity; advises, however,

long-terms should constitute no more than a

the line, but the rise has
been greater in the short maturi¬
ties than in the long—so much so
along

has set in about them.

further decline of bond
prices. The business outlook, they
feel, although not so optimistic as

Since the spring of 1958 an almost
continuous downward movement

j..

Rise in Yields on

fourth
normal net income; and provides a check-list to guide
of convertible bonds in view of the disillusionment that

that interest from

in earlier eras
investment popularity.

their counterparts

selected bonds are still available, despite
market

.

even

*

maintain
kind

eral Government, even in

some

defensive

curities

to

sums

se-

Federal

un¬

bonds

afford

very

real

attrac¬

tion.

Such in¬

meet

still

have

to

large

for

market

its debt maturities.

supply side, persistent in¬
flationary psychology will inhibit
the amount of new money which

portfo¬
lios, the high
yields now
earned by top-

quality

the

On the

in

their

and medium

small

income

savers

bring to the bond market. Under
these circumstances, so the argu¬
ment goes,

the Federal Reserve is
unlikely to change its policy of
nonsupport of government bond
prices. The total effect, especially
when augmented by the inflation¬
ary
effects of the approaching
elections in this country and of

Robert W. Mayer

vestors—who often follow the for¬

mula-plan principle of shifting
their
holdings toward defensive
securities when stock prices rise
to heights beyond any reasonable
discounting of expected earnings
and

into

come

and

aggressive

budget, will

anced

between

ance

the

likely event that it achieves a bal¬

bal¬

of

dividends—could-hardly

the

developing

economic boom

abroad, would make any-substan¬
tial upward movement of bond
prices during 1960 unlikely.

long

a

of tax

The large increase

bonds.

income during
World War II made exemption so
attractive to wealthy investors that
it became almost a tradition to
rates

personal

on

support

Reserve

for

so

been almost forgotten:
general level of interest
rates is low, the short-term rates
tend to be lower than the longciple has

when the

term

the short-term
rates tend to be higher than the
rates

of

is

high,

long-term rates.
When

borrowers

consider

the

general level to be low (that is,
when they expect it to be higher
in the
to

future), they naturally wish

secure

the benefit of the favor¬

able rates over as

long

a

period as

possible, so they bid up the price
of long-term funds and exert rela¬
tively little demand for short-term
funds.
Lenders, in such circum¬

to

at

find

ex¬

better opportunities

liable

trading in anticipation of

services

lieve the investor of

may

re¬

an

sharp price rise.
bond trading can be fully as haz¬ his own investment requirements
ardous as speculative stock trading. —to recognize that qualities which

Besides,
ers

be valuable

may

some qualified observ¬
believe that 1960 may bring an

to

other

tors may be worthless

The

of this

some

inves¬

(or worse)

moral

for

the

investor

is

that under present market

condi¬
tions he must not take for granted,
he

as

has

been

able

to

do

for

offer to sell nor the solicitation of an offer to buy
offering is made only by the Prospectus.

any

New Issue

of these

#

.

Common
($1

par

Price $42.75

per

Share

*

*

*

*
-

4

f

\

Incorporated

Ladenburg, Thalmann & Co.

Glore, Forgan & Co.

Kidder, Peabody & Co.

Merrill Lynch, Pierce, Fenner & Smith




Corporation

3=4

4.09

340

3.12

4.08

3 33

3.19

4.12

3 24

1959,,;
January. ; 3.90
February.
3.92

*

J

3.21

3,23

4.47

3.11

August...

4.10

3.44

4.43

3.14

September

4.26

3.60

4.52

3.26

October

4.11

3.57

4.57

3.26

November

4.12

3.44

4.56

3.24

December

4.27

3.43

4.58

3.18

January.

4.37

3.49

4.61

3.27

February.

4.22

3.40

4.56

3.40

For many years

income investor.

order of 2% were
and such a return

yields on the
characteristic,

sufficient to attract

far from

was

dicated

by Table III, the taxable
equivalent of such a tax-

yield

exempt yield is 5% if the inves¬
tor's
taxable
income
is
$6,000-

1960

SOURCE:

Federal

Reserve

TABLE

Bulletin.

II

U. S. Treasury Bond Yieldsissue

4/1/58

12/15/58

12/15/59

I960—

1.07

3.77

4.56

1961.

2.26

3.61

1961—

2.31

3.65

5.03

June 1962..

2.32

3.63

4.95

2.33

Nov.

Sept.
Nov.

Dec.

1962—

5.03

3.57

4.84

Aug. 1963—

2.43

3.63

4.98

In¬

Feb.

1964—

2.48

3.74

4.94

even higher yields can be
secured without very great sacri¬

Feb.

1965—

Aug.

1966

$8,000 and 8%% if it reaches into
the

bracket.

$22,000-$24,000

fice of safety.

Prices of top-qual¬

ity bonds are bid up somewhat
artificially by certain types of in¬
stitutional investors which

are

le¬

gally restricted to such securities
The ordinary
investor, by going down to Aa or
A
grade
municipal
bonds
(he
probably should go no further),
for their portfolios.

materially improve his yield.

can

The types of securities in this
category are quite varied. Ordi¬
narily the individual investor is

issue

the

in

autumn

elec¬

tions) would be of this type and
should

be

attractive

to

investors

3.82

4.88

2~83

3.70

4.54

June 1967

2.62

3.74

4.49

Dec.

4.57

1968—

2.68

3.79

June 1969

2.76

3.85

Oct.

1969

2.95

3.82

4.46

Dec.

1969—

2.77

3.82

4.60

3.84

4.63

March 1970
March

4.64

1971

2.11

3.77

4.51

June 1972—

2.76

3.70

4.40

Sept.

2.76

3.70

4.43

1972_

Dec.

1972

2.75

3.66

Nov.

1974

3.15

3.82

Feb.

1980—

4.35
4.35
,

June 1983

3~79

May 1985—r

3.78

4.33
4.17
4.14

Feb.

1990—

3.25

3.68

4.26

Feb.

1995—

3.09

3.65

3.95

•Yields on callable bonds figured to call
date if price is at 100 or above, to ma¬
turity if price is below 100.

Wall

SOURCE:

Street Journal.

TABLE

Taxable Yield

J:/

III

Equivalents of

Tax-Exempt Yields
Taxable
Income

Bracket

—Tax-Exempt Yield3.0%
3.5%
4.0%

.

4.38

5.00

4,000

3.85

4.49

5.13

6,000

4.05

4.73

5.41

8,000

4.29

5.00

5.71

8,000- ■10,000

4.55

5.30

6.06

10,000 ■12,000
12,000- 14,000

4.84

5.65

6.45

7.02

$0- $2,000

2,0004,000-

6,000-

•

■

3.75

.

5.26

6.14

14,000- •16,000

5.66

6.60

7.55

16,000- 18,000

6.00

7.00

8.00

8.51
9.09

18,000- •20.000

6.38

7.45

20,000- ■22,000

6.82

7.95

22,000- 24,000

7.32

8.54

9.76

throughout the nation.
Even revenue

vestor,

bonds, long looked
by the conservative in¬

appropriately form

can

himself

nois

that

the

revenue

is really reliable. The bonds

by the University of Illi¬

to

finance
are

construction
of

this

of

type be¬

there is

cause

A

increase

permanent

of

the

has

been

a

tax

Service

Revenue

rate

Form

tables in
1040

In¬

that side of his hedge. Such cir¬
cumstances had not cropped up for
years, to be sure, and many inves¬
tors apparently forgot that they

could.

ever

Investors need not eschew con¬
vertible

bonds entirely, however,
just because they have proved to
be
no
panacea
for investment
problems. What is needed in their
selection

the

should

certain

disillusionment

from

structions.

In

Second Look at Convertibles

of

Internal

Derived

certain

A third consequence of the bond

decline

SOURCE:

a

of the ordinary investor's
portfolio if he takes the trouble to

about

on

their "eat your cake

that

convertibles

offer

hedge against both inflation
deflation:

If

inflation

a

and

is

the

proper

attention to
precepts

well-established
first
avoid

generally

place, the investor
being lulled by the

defensive character o
into considering it

security

unnecessary to investigate
merits of the stock as a stock.

the

same

White, Weld & Co.
Incorporated

tion

sets

not

fall

sion

time

he

should

the

At
avoid

feature

into

considering it

unnecessary to investigate the
merits of the bond as a bond. More

specifically, the investor may

be

well advised to refrain from pay*

continues, ing

the
stock will
carry
the bond
price up with it and produce a
handsome capital gain; if defla¬

Incorporated

Stone & Webster Securities

4.11

3.17

3.80

3.51

been based

Incorporated

*

3.23

3.70

December

4.11

and have it too" nature.
Many in¬
vestors have been
intrigued by the

A. G. Becker & Co.

Harriman Ripley & Co.

3.76

November

ity bonds. The popularity of these
being lulled by the generally ag¬
securities during the 1950's has
gressive character of the conver¬

Eastman Dillon, Union Securities & Co.

Goldman, Sachs & Co.

October—

July.....

notion

Blyth & Co., Inc.

2

V70
3 rq

yond the reach of the moderate-

the investment qualities of con¬
vertible industrial and public util¬

Copies of the Prospectus may be obtained in any state from such of the several Underwriters
including the undersigned\ as may lawfully offer the securities in such state.
*

-

3

'

2 or

amount

value)

4 09

3.75

4-46

price

Capital Stock

3.28

;

3.37

and

Universal-Cyclops Steel Corporation

3.85

3.60

4.09

university's enrollment.

f

3.07

August
September

June—__

*'*■■*

it,

3.67

prices of municipal bonds be¬

the

150,000 Shares
* «

4 no

2.79

_

32s

already a shortage
university-owned housing, and
the coming years will
bring a large

*» .

410

3.57

3.36

July

4.23

'

'

4,,

3.57

2.74

4.37

they would bid up

of

T V

3.60

2.69

3.19

3.29

dormitories

April 12,1960

2.70

3.14

-3.12

utilized

securities. The

3.12

4.08

source
an

April
May—___
June

4.01

assure

This advertisement is neither

p

May

a

funds, the higher
count upon. On

can

S &

April

that

consider

part

his

stock,

332

to

yield he

Bonds

4.14

at askance

commit

Bonds

4.13

good many years, that the longer
the term for which he is willing
the

conf

Bonds

3.16

their

work; but it cannot relieve him of
the necessity to analyze and assess

early
Speculative

and

financial

Aaa

Corp.

3.06

Even if immediate

This is not to suggest that condi¬
tions are ripe for speculative bond

I960

Aaa

Munic.

3.92

stances, wish to avoid committing
the^r funds any longer than neces¬ wise to refrain from tying up
prospects
do
present. Even the sharp
sary at rates unfavorable to them¬ much capital in the bonds of small
decline of stock prices in the first not favor speculation in bonds,
selves, so they offer more funds cities, school districts, and the like,
two months of 1960 has not sig¬ however, the country's history and at short than at
long term, thus because of their lack of market¬
politics argue against indefinite
nificantly changed the picture.
depressing the price of the former. ability. There are plenty of larger
continuance of today's high yields
When the general level of interest governmental
units, however,
Bond Yields Versus Stock Yields and
suggest that investment in
rates is considered high (that is, whose credit is both strong and
What is the picture?
Table I carefully selected bonds for long- when it is expected to be lower in nationally known, and their secu¬
may
be well the
shows how much the yields on in¬ term productivity
future), the attitudes of both rities, therefore,
enjoy entirely
worth considering.
Selection of
vestment-grade bonds have risen
borrowers
and
lenders are re¬ adequate secondary liquidity.
bonds for investment is a highly
(in reflection of their price de¬
versed: borrowers bid up the price Bonds such as those the State of
technical matter calling for analy¬
clines) since the spring of 1958,
of short-term funds
relative to Illinois would use to finance the
and
how sharp has become the sis of quantitative and qualitative
that of long-term funds, and lend¬ construction of
urgently needed
evidence bearing upon the posi¬
disparity from the "normal" rela¬
ers depress the price of long-term
educational and welfare buildings
tion and prospects of both issuer
tionship between bond yields and
funds relative to that of short(assuming
the
electorate
approves
and security. Grade rating by re¬
current dividend yields on stocks.
term funds.
pect

than

1958-February
U. S.

March...

level deed,

rates; when the general

Stock Yields

Treas.

1958

of the

As a second consequence

on

time that a classical prin¬

April

v

*•

the shorts are ac¬ investors in the medium income
tually higher than those on the brackets.
of bond
prices has produced a
longs.
This condition is by no
The current situation
situation of considerable interest at the beginning of the year, is
prompts
still favorable enough to warrant means novel, but it has not ob¬
reconsideration
of
this
attitude.
to investors.
tained for many years. Indeed, the
expecting that business firms will
To those in¬
Today,
even
the highest-grade
on
government securities
continue raising a good deal of yields
vestors whose
(Aaa) municipal bonds can be
had been held artificially low by
new money.
Moreover,
the
Fed¬
purchased to yield 3V2%. As in¬
policy it is to
that yields

Bond and

Advantages of Tax Exempts

•/' ?'•.

TABLE I.

,

his

secure

yond the scope

worthwhile investment opportunities in carefully
this year's downward stock

Author opines that

for
be¬

he must use care to
optimum combination
of yield and maturity.
v
the contrary,

bond price decline, some investors
of a short article. have awakened to the realization
Three aspects to today's situation,
that they need not necessarily be
however, bear especially interest¬ millionaires to
appreciate the taxing comparison (or contrast) with
exempt feature of municipal

By Robert W.Mayer,* Professor of Finance, College of Commerce
and Business Administration, University of Illinois, Urbaita, 111,

or

Thursday, April 14, I960

.

(1628)

price substantially in excess
of the bond's yield value—that is,
the prevailing rprice for noncona

vertible

bonds

which

are

other¬

in, the bond price will wise similar in characteristics. 11
below its "yield value he
does, he is buying, to the ex¬
floor" and the interest
income, tent of the excess, not bond but
fixed in
dollars, will enjoy an in¬ stock.
crease

of

purchasing power. The
descent of bond
prices
shows that in sdme Circumstances
1958-59

the

"yield value floor"

very firm, and
sells at too low

may not be
that if the stock

Another

point — "obvious"

but

should
avoid payipg a price in excess 01
(or even very close to) the can
price, especially if the stock is sell¬
often

ignored—is that he

a level to
provide ing below conversion parity. The
support, the holder call price usually constitutes an
may be sadly disappointed about effective
ceiling or limit to app^e"

speculative

Number 5942

191

Volume

The Commercial

...

and Financial Chronicle

(1629)

desirable to avoid

It is also

ciation

least to view with skepti/.ism—bonds which are convertible
nrices that are graduated up^or at
.

of time All

with the passage

the upward march of the

often

too

Inversion

price stays just enough

the market price of the

head of

fnok

prevent the latter from

to

July 15, 1960.

.

Statuettes in the form of
crier

will

be

town

a

presented

to

the

winners at the NYFA annual din¬
in

ner

decision

of

board

a

banks
having any substantial effect
($500 million
market value of the bond. deposits and over); other commer¬
least important, cial banks; savings banks;
savings
the interest requirements on
the and loan associations; and invest¬
hind-Plus interest on any other ment banking and brokerage
long-term debt—should absorb no firms. A sixth award will
go to
more than a fourth or a third of
the
winner- whose
material* is
normal net income. This may ap¬ judged "best of show."
pear to be a counsel of extreme
Judges who will serve are Mrs.
conservatism, but the bond inves¬ Edna
Beilenson, President of the
tor who disregards it should blame
American
Institute
of
Graphic
no one but himself if a setback of
Arts, J. Edward Drew, Public
the company's fortunes threatens
Relations
Director
of
Lever
default of interest and drops the
Brothers Company, and Keith K.
bond both in grade and in price.
"

.

retired
executive
of
probabilities are very great Kimball,
that financial historians looking Batten, Barton, Durstine & Osborn.
back from the vantage of 1980 will
Entries will be limited to 10
say that early 1960 was an unusu¬
ally high interest period. Inves¬ pieces of advertising, with
The

who take the trouble to look

tors

about them today for
unusually favorable

carefully

of the

some

opportunities for bond investment
add

can

their

to

portfolios

productivity

and

both

defensive

strength which may prove invalu¬
able in the years to come.

syndicated material excluded. In¬
quiries
from
entrants
may
be
addressed

to

Annual
125

36, N. Y.

To Form

Potoma & Weill
On
ma

York

further to improve the

move

a

quality

financial

of

the New

York

tisers Association has
an

annual awards

800

financial

New

York

advertising,

Financial

May 1st Carter, Berlind, Poto¬
& Weill, members of the NeW

Adver¬

Stock

institutions

metropolitan

in

the

area

to

participate.
in

cover

in newspapers and

be

lind, Peter J. Potoma, Jr., mem¬
ber of the
Exchange, and Sanford
I.

Weill.

PITTSBURGH,
Ruth

Sheldon

New

York,

advertising

magazines for

the period July
1, 1959 to June 30,

&

1st

in

partner

Mc¬

Company, Union Trust
members

and

of

Pittsburgh

steel

will

Dr. Einzig notes there is

revert

to

Cameron

Cobbold, Governor of
England, hit the nail

the head

•when

a

few

that the Stock

Britain

was

the Bank of

months

he

ago

the

New

Stock

Ex¬

speculators
sult

too

few

gone

est

ceiling

tion

from

available
No

less

4

A..

was

the direct competi¬

the

Treasury's readily

outstanding
than

selling at a
I rations and
tax

page

34

securities.

Treasury

issues

discount offer corpoin the 52%
a
net-after-tax return
than the new

individuals

bracket

greater

offering—
is
partly derived
9Q A? ^vorahle capital gain rate,
it J~ tbese issues are short-term
SGa 5 years)- And 6 Govern3 ASency bonds similarly offer
since

i

the yield

Lup

^lelds than the

Funds, as revealed
statements, along

hv
wit

new

^.r??ent
In

,al investors, and not
I lihprnii6 Jaefari°us" banks, have
issues
k°u§tit these discount
onlv

•

Insult Plus
Injury

nelvTpm0^-'lyJ

during 1959 as a re¬
Stock Exchange boom

of the

and of the take-over bids stimu¬
lated by it, provided
good excuse
for trade unions to

in the cost of

living.

Although there were many new
issues of equities in 1959 and the
first

quarter

more

the

of

1960,

believed

are

increase

in

to

and

many

be

pending,
supply of

the

equities does not keep pace with
the

increase

i

have

to

bear

an

a

somewhat

in

the

demand

for

securities

is

still

far

concluded.

from

having

Parliament

is

about to pass legislation authoriz¬

ing local authorities to invest part
of their funds in equities. Trustees
too, will shortly be in a position
to invest in equities.
Institutions
individual investors

their

use

pvpc

confirmed

issues."—From

in

excuse

since

the

tion

is

acute

threat

the

in

issues

the
by

private enterprise. Measures taken
to

that end

late,

would

however,

tend

to

inflationary

or

dium-

and

would

assist

outside

and

a

the

steel

expressed

sphere

himself

about

prospects

of

the

non-

This

less

at¬

Keep
Debt

the
of

Government
Down

absence

the

of

debts

of

various

maturities.

be

difficult

to

its

of

increase

in any
Caveat Emptor (He Did!)
given to thpT
privilege is
Your Congressmen made a noble
nate the rnn? b°rr?wer to termieffort to protect your country's
ihterval
any six-month
notice! rw4 months' advance Treasury. Should they not be
follol^gtlie entire decade happy that you, his neglected con¬
and at
Par

witi

stituent, have exhibited the wis¬
dom to take of yourself, by your
buyer's strike? (The new issue is
quoted, as we go to press, at
e investor can.99 2/32-10/32.) We feel confident

/irst 15

years—

whatever
any Premium
tirnes aft^107°$? ^ords> ata11
not

know

Peri^itted
ThiS

ii l

to

r

•

°-r not he is

OUtrpaemaiin ^ tbe isSUe*

rangement JL
y unfair - ar1° aPPease th S fre?umably added

?.ecretary

himself
3

Co"

as

An

JL ^^slators. While
°n bad expressed

Provisiinfth?3 wasiSely




that at least Senator Douglas, who

;is always to be found

on

the side of

enable

in

their

liquidity ratio.

nancing

of

the

deficit

aid of

lotig-terfn

issues

would

ing

the

protection

of

the

public,

pondering the situation further

will share such satisfaction!

banks

or

The
with

fi¬
the

medium-term

further

depress the
gilt-edged market, which is any¬
thing but receptive for new Gov¬

with

ernment loans.

long-

of

in

the

Owing to the state
gilt-edged market there is

conjunction with the experiments

strong temptation for the Govern¬
ment

"hovercrafts,"

well

replace
distant
other

which

future.

a

matter

There

are

publicly owned

as¬

could

and

denationalized in the
The

might

should

near

disinflationary

be

future.

to

take

the

line

of

least

resistance and to allow its Treas¬

conventional

However, that is

the

sets

the

which

bill issue to increase not only
new borrowing but also
through the financing of maturing
debt. Having regard to such cir¬
ury

through

cumstances the argument in favor
of denationalizations to the utmost

stimu¬

such denationalizations would not

limit of possibility seem to be un¬

pres¬

be confined to the effect of the in¬

answerable.

effect

announcement

is neither

an

offer

to

sell

solicitation of an offer
only by the Prospectus.

nor a

ISSUE

to

buy

'

.

any

of

April 13, 1960

300,000 Shares

The West Penn Electric

Company

Common Stock
($5 Par Value)

Price

$36.75

per

Share

Copies of the Prospectus may be obtained in any State from only such of the under>
signed and the other several underwriters as may lawfully offer the securities in such State.

Carl M. Loeb, Rhoades & Co.

Ladenburg,Thalmann & Co.

Johnston, Lemon & Co.
Sutro & Co.

-

Bache

&

Co.

Baker, Weeks

Shearson, Hammill

t

Auchincloss, Parker

.

t

&

&

Co.

&

Co.

Redpath

the angels,on any question involv¬

on

It

down

of

dlsadyantage,

Buf1'1 \lrious enough

keep

Treasury bills and

would

Letter

a

Secretary Anderson to Sena¬
Bush, February 19, 1960.)
Thus, with the outstanding is¬
sues
suffering from no such Call
penalty (where they are callable,
with much smaller latitude, they
materially increase further the
yield differentials which we have
cited),
and
with
even
Savings
Bonds putting the holder, and not

realiza¬

would

+

case

the

Government's

from
tor

of

with

these securities. The offer is made
NEW

mar¬

flow

to expand credit without a decline

at

railroads

better trend

the

reverse

it

mar¬

into

the volume

recent speech the

optimism

gilt-edged
a

me¬

capital
through denationalization
budgetary deficit would mean
further expansion of Government

commercial proposi¬

a

the

of

loans

the

industries.
are

long-term

assets

own

Marples,

might

In

pos¬

Transport, Mr. Ernest

various

partly

of

reducing

tion

nearer.

In

trains.

new

draw

Minister of

for

of

proceeds

for

be

the public.

surprising if the demand for equi¬

lies

also

iron

they

ties

remedy

will

to

Govern¬

the

AV

more

denationalization

And

which the

it

limit

use

Would

renationaliza¬
become

bills

equities
and
might
therefore prevent a revival of the
Stock Exchange boom.

various assets such
hotels'which could be sold to

:«as

range

supply.

to

any

to

and better prospects in that

especially

though^Uie railroads

>

equity holdings rather than

tends to exceed

are

present not
tion

of

banks

expansion.

to

would

been

can

Treasury

ket. The evidence of

the date of the next Gen¬

There

of

there

delay

bound

as

Event

office

for

at

or

denationalization

Now that the Con¬
has

the mone¬

keeping down the volume

since it implied a threat of
renationalization in case of a So¬
Government

on

supply

the

credit

ment

year,

no

dependable effect

of

force

extent

ket

much

for

the

for the delay was the
General Election last

cialist victory.

at the

(

checking of that supply

volume

their

funds

adding to

resources

the

would

only

servative

more

security
the

firms ought to have been
denationalized long ago, and the

impending

or

To
the extent to which denationaliza¬
tion would lead to a reduction in

These

excuse

wages

through the budgetary deficit.

his Budget
speech the Chancellor of the Ex¬
chequer foreshadowed this event.

tractive to many long-term inves¬
tors
in
comparison
with
fixed

maturity

ment

Denationalized

alternative method

an

sibilities

is

callable issues of similar maturity.
existence of a Call feature
make

is

be

tary trend would be through the
mopping up of excessive Govern¬

of

from fixed interest securities into

This

The

to

A much

higher

effective rate of interest than

tends

There

Be

eral Election

The

accompanying
higher-than-market coupon. ("If
the
Treasury, once the interest
ceiling is removed, decides to issue
bonds callable at par, it must be
recognized that the securities will
on

May

de¬

can

other excuse.

some

of denationalization

rate

Steel

be
an

wage

unions

always claim that

can

Ex¬

to

provide

time of the Black Death!
v

on

the

on

largely due to the
fact that the process of
switching

them.

encouragement

this
the Government in
the driver's
at least in
unpreppH
*ls observer, is the seat, the lower-yielding new issue,
by the legislators, offers
goMnCtende^ted Ca" feature that instigated
the investor the worst of both the
vvay ?pllhls+.c°ntract.
The onecal and • •
?n °Ption is unethi- possible worlds.
the

1

comPounding

premised

have

,

further

In the circumstances it is not at all

from

absence, will

cease

ing the Napoleonic Wars

He

equities.

even

for buying Government securities.

Continued

believe

economy which the
Government is trying to resist.

Exchange boom in

trade

prices.

Stock

on

excessive

the

equities

yet caught up with the
increase in the cost of
living dur¬

satisfying the appetite of in¬
vestors for equities. It is the de¬
nationalization
of
enterprise in
by saying that the inadequacy of public
ownership. There is reason
the volume of attractive
equities 4o believe that this will be done
was partly
responsible for the re¬ in the course of this
year in re¬
vival of
inflationary pressure for spect of the iron and steel com¬
higher wages.
For
the
capital panies which are still owned by
profits made
by
investors and the Government. In

their

OBSERVATIONS...

sure

said

the result of too much

money chasing
He might have

increased

changes.

its

or

of

equity

have not

financing and existing debt issues.

LONDON, England—Mr.
on

reason to

private ownership this year.

denationalization,

future Government

and

Building,
York

May

and

weighs the effect

been

McKelvy will be¬

limited

a

Kelvy

Pa.—On

denationalized.

that iron

equities

McKelvy to Admit

>

come

the contest will

will

inaugurated

contest, inviting

First of its kind

Exchange,

formed with offices at 37 Wall
St.,
New York City. Partners will be
Arthur L. Carter, Roger S. Ber¬

They

shortage of equities, contributing to their price
rise, may be
alleviated somewhat if iron and steel firms
and other publicly owned

put forward
excessive wage demands in spite
of the absence of
any further rise

Carter, Berlind

and

InaugurateContest

Savings Bank,
Street, New York

42nd

the editor
of
the "Illinois
Review," a publication of the
University of Illinois.

In

Cheshire,
Committee,

Irving

West

Business

Fin. Advertisers

Leslie

Awards

American

♦Reprinted with kind permission of the
author

mands

trusted to find

The

assets are

of

if profits

for

excuse

By Paul Einzig

he

supply

change appreciations
sufficiently large to

the

Finally, but not

the

level

After all,

of

impartial judges, will be made in
following
categories:
large

the

on

British Securities

September. Awards, based

the

on

in

crease

Denationalization's Impact

commercial

ever

13

1960. Deadline for entries
will be

Boettcher and

Company

\

Dick

&

Merle-Smith,

The
14

record over
seasonal changes
lending can be antici¬

from

Continued

and 12.3.5
liquidity tends to decline

percentages of 3.6
Bank

In

vestments.

based

analysis

Credit

on

of money. Tight be revised periodically to note
rationing effect as .changes in; (1) distribution by
well as a cost effect.
type of loan, (2) distribution by;
Summarizing to this point, we size and (3) distribution by ma¬
find that the average bank will
turity.
1
have capital funds equal to about
Delinquent loans should receive
7.8% of its assets.
It will have
special attention. The Installment
a

,

.

*

in primary

about 19% of its assets

of the Ameri¬
can Bankers Association maintains
a monthly series showing the per¬
Credit Commission

about 4% in marketable
Government securities ma¬

reserves,

S.

turing within one year and about
17% in maturities of less than five

should serve
guides for the individ¬

merely as

Nov.

Lending
commercial

is the most important
bank
function,
ac¬

counting for about 68% of bank
income. At the end of 1959, loans
and discounts accounted for 46.7%

another

in

pressed

loans

way,

of total de¬

equal to 51.4%

were

Ex¬

assets.

bank

commercial

of

posits.
is well below
the June 1929 high of 72.9% but
it is high as compared with post¬
war experience.
In 1929, govern¬
ment securities were not as read¬
1959

The

figure

available

ily

they

as

today.

are

is little likelihood that the

There

percentage will ever approximate
the 1929 figure for the system as
a

',

whole.

J

t

.

banks

individual

Some

today

figures show¬
to deposits as high as

do have percentage

ing loans
65

pinch
more
a

These

70%.

or

banks

in

larger

of

tight

severe.

bank

is

usually

are]

the

cities where

In

has

money
such a

"loaned

been

,

borrowers

are

for

the objective of a
policy. The demand
tends to outstrip
the

course,
money

funds

supply which has been held in
check by the monetary operations
of the Federal Reserve System.

Over

5

a

longer

pe¬

Compiled from data appearing in
Reserve Bulletin.

the

it

out

most

smooth
season

variations.
that

assume

of

the

As

an

the ratio

of the

12!#%
on

would

loans

be

indicate

an

the
It

in

paid off,

one

year.

show

O

R

REPUBLIC

As

matu¬

loan maturities

seasonal variation,

a

P O

R

A

T

I

ON

PICTURES CORPORATION

at REPUBLIC CORPORATION,

formerly Republic Pictures Corporation

stress

have

the

name

change to

strong.

current

many

profits

may

on

Now,

all
a

film processing,

distribution,

plastics manufacturing. Repub¬

production of motion

profit-minded

new

seeks higher earnings

exact

an

.

.

.

pictures

in

an

5%.

(3)

.

risk

By

The

assets.

increase

risk

be a
changing

may

be

may

a

risk.

credit

"Accord"- of

money
cant.

InterestVrates

over

shoulc

for

volatile—a

have

situation

been

that

is

the

Federal

tax

bracket.

should

not

the

52%

in¬

Municipal

be

is¬

considered

as

substitute for U. S. Government
In many cases

the trading
municipals is thin or

market

for

almost

non-existent.

They

also

carry
a
considerable
amount of credit risk.

Long-term

investments,

other

than U.S. Government s, ac¬
counted for 8.4% of commercial
bank assets at the end of 1959.
Banker

and

A

banker

who

the

has

Community

thoroughly

analyzed his deposit accounts and
loan portfolio, already knows
great deal about fiis community.

his

sector

improved

finances

,

will

in¬

position

in

1960

o'

wil:

impact. Interest rate
fluctuate with changing con¬

may

from

week" to
level

over-all

likely to
(7)
1.5%

from:

hard

goods

farm

prices

in

downward

general

of

t'

will

the

b

prices

information.

A

banker's

services

bui

likely to continue
trend.

unlikely

Prices

to

in

advance

The

stock

uncertain
scene.

below

bonds.

The

market

factor

in

Stock

yields

on

Dow-Jones

is

the

yields

the
196C
a^e

high-grade
Industrial

has

been selling around
expected 1959 earnings
By previous standards of measure¬
19

times

ment,
stock
high. Should

prices
have
been
a bear market de¬

knowl¬

edge of the community should in¬
4024 Radford Ave.




•

North

Hollywood, Calif.

clude

industry

deteriorate in the interna¬
tional market. Sustained adverse

could

payment such

of

balances

have experienced
could

force

as

in recent

devaluation

a

we

years

of the

dollar in terms of gold.
Even if many

cations prove

of these prognosti¬

to be wrong, and I

hope that some of them are wrong,
it

conservative

the

failures

not

are

the

of

positors

may

entirely

what

but

side.

err

Bank

thing

a

banks do fail. De¬
be protected by the

past;

FDIC

banker to

the

for

safer

is

on

about

munity,

employees

holders?

Bankers

the

are

com-

stock¬

and

likely

to

opportunity to fail.
prudent management

have only one

Obviously,
will

the most

to make

want

not

of this

opportunity.

West Penn Elec.

Stock Offered
Carl

:

& Co. is
underwriting
which offered today 300,000

M.

group

Rhoades

Loeb,

of tan

manager

company's common

of the

($5 par value) at a price

stock

of

$36.75
per
share.
The under¬
writers won award of the common

an

understanding of:

(1) Local population shifts and

trends;

by the company to purchase ad¬
ditional common
shares from a

subsidiary;
an

of

issue

for

other

for the retirement of
assumed bonds, and

general

corporate pur¬

poses.

Electric

Penn

West

is

Co.

a

holding company owning directly
or indirectly voting stocks of cor¬

porations,, whose principal busi¬
ness
is the production, distribu¬
tion and sale of electric energy.
The

company

owns

of the

100%

(1) The economy, nationally and
internationally, has become in¬
creasingly competitive in recent

_

stock of West Penn Power
are

the principal

wholly-owned
subsidiaries.
The
system's territory is located in
Pennsylvania, West Virginia.
Maryland, Virginia and Ohio and
covers

about

29,000

square

miles

population of about 2,400,000, according to the 1950 census.
For the year 1959, the company

with

and

a

its

subsidiaries

had

consoli¬

of $152,income of $21,-

dated operating revenues

107,674

and

net

208,593.

Chicago Analysts to Hear
CHICAGO, 111.—L. B. Headers,
President, and John P. Harbin,
Financial Vice-President of Hal¬
liburton

Long-Run Expectations

r,stock

Co.
operating
companies of the West Penn Elec¬
tric System, and each has various
mon

These

o

velop in stocks, the unfavorable
should, nevertheless, check and psychological reaction would ad
supplement Hhis
knowledge, by vprsely. affect business expecta¬
consulting other local sources of tions.

ORPORATION

American

of

position

of Monongahela
Power Company and The Potomac
bv
Edison Co., and 95.2% of the com-

He

C

•

(5) Unless inflation is success¬
fully
checked,
the
competitive

common

1958

There
in

and
are

are

economic
well

un¬

rapidly in 1960 than in 1959.

(8)
most

but

is

December

1959.

increases

some

more

week

rates

move

December

a

of

much higher.
Consumer prices
rose

average

The

ex

wil

soften ;the

the

is in

credit

purposes

private

the

crease,

ditions

bank

and

these

con¬

will advance

to expand.
(6) While the demand for credi.

High-grade municipal securities
have a place in the bank bond
portfolio. This is particularly true

a

by at

increase.

levels

1959

tended

likely to continue.

first through internal

1959

over

durable goods

from

it
the

1951," the
risk has been most signifi¬

a

shoulc

(5) Production and sales of
sumer

issues,

issues.

just about every¬
\

4

Inventories

(4)

continue

come

income

Production

similar

a

but

S.

U.

where.' 1

shares

Industrial

money risk, caused by
interest rates or, on poorer quality

more

of

The Federal Reserve Index

show

>

Long-term investments, includ¬
ing U. S. Government issues are

are

of

the

unit bank-

our

ing system.

management

growth, later through industrial acquisitions.

show

unsolved problem, not only in

an

there is
This is a

dividual banks and
*

measures

least

the long-run, continue to feed the
fire of inflation. Inflation is still

is concerned,

scene

(2) Gross National Product anc"

other

,

shares
at
competitive
sale on
will rise, - re¬
April 12 on a bid of $35.52 per
quiring additional bank credit. In
share.
vestment in plant and equipment
accelerate,
also
requiring k; Net proceeds from the sale of
in¬ will
the common shares will be used
credit.

futuiie year than

frequently

emphasis

halted

1957.

effected the

just

studio rentals and
lic

...

management and earnings outlook. Share¬

is

advisable in

reduce

losses

some

sues

holders

not

is

Economics

and f

years

credit

for

seem

to

when the

name,

prosper

the national economy prospers.

as

are

likely to be in 1960.
hedge which can strengthen

month; this

lengthened, liquidity declines.
Like deposits, loans will tend
to

C

new

mind.
While
against the

areas move

most communities

cycle,

economic

rates

be realized in
later years as capital gains. There
may be a greater need for profits

that

ratio

the

would

Such

.

Everything is

as

in

economy

local

some

through tax saving capital losses.

to

Now, let us
drops to
8V3%, the average maturity is now
that

assume

demand

cases

example,

average

a

Since

a

local

be managed
well as the

must

national

the

(1)
The year 1960 has very
1960 should prove to
bright possibilities insofar as the
profitable year for most com¬

banks; interest
higher than in recent

rity of eight months.

Federal

the birth of

funds

Bank

with

.

(4) Government deficits will, in

trust science.

companies,

mercial

unusual

shows

are

the average, in one

tend

recessions. With in¬
production of consumer
and capital goods in the world
economy
(including the USSR),
maladjustments in prices, wage
rates, credit, saving, investment,
production and inventories are
more likely to occur. ;
:
war

-

creased

Economy

The year

may

the use of a four or six
moving average would be

would

always involves some
degree of risk. Tight money tends
to weed out some of the marginal
borrowers; they are rationed out
Lending

of the market.

term "invest¬
The bulk of
the so-called investment account
will consist of short-term U. S.
Government securities. These are

Insurance

since

is

deep depressions of the 1930's

the

Actually,

months'
better

competition

variety.

National

the

and

Banker

The

liquidity.

lack

ments" is misleading,

paid off during a period of time,
such as one month, to the average
volume of loans outstanding. Pos¬

sibly

forced

to fan out in search of funds. This

is, of
tight

by

continue

.

loans, may

of long-term

case

also

obtain maturity
relating the total loans

bank

data

up." i Further

liquidity to the danger point. Ra¬
tioning of credit becomes more
and

the

follows:

as

A

situation

extensions of credit would impair

severe

30,

utility customers, etc. and,

Economists cannot run
controlled experiments with real
(1) Personal loans—___—- 1.63 funds, pension f u n d s, savings
Furthermore, they must
banks and other financial insti¬ people.
(2) Home appliance loans--— 2.82
attempt to account for the inter¬
(3) Automobile-direct ———
.84 tutions, are better adapted by the
action of an infinite number of
(4) Automobile-indirect —_ 1.39 nature of their operations to the
variables: As a result, it is im¬
(5) FHA Title I loans—
2.05 holding of long-term issues. Com¬
mercial banks, to the extent that possible to predict the future with
(6) Property improvementcertainty. The longer the time in¬
own plan
2.21 they are free to make longer-term
volved in forecasting, the greater
commitments, usually buy with
The monthly ABA figures can
uncertainty.
Economists do,
the intention of holding until ma¬ the
be used as a guide by individual
turity. In planning their invest¬ however, have a wealth of statis¬
banks. The figures serve to show
tical
data
drawn
from the past
ment
portfolios,
they prefer
the national trend and may also
It is possible to project trends and
spaced
maturities.
be used as a comparative measure
to
formulate
principles
of be¬
Banks do not ordinarily engage
of individual performance.
havior.
While
not a guarantee,
in security trading for the purpose
A periodic study of loan maturi¬
this is of great value.
of
gaining
speculative
profits.
ties is advisable. Nominal maturi¬
Having thus acknowledged the
Current conditions do, however,
ties have little meaning if loans
involved
in
fore¬
afford
an
excellent
opportunity uncertainties
extensions
are
frequent.
Actual
for
tax
switching.
Banks may casting, I will proceed to make a
pay-off maturities are a better
predictions that may have
sell securities that have declined few
guide. As real average maturities
in value and establish a loss which significance for bankers. Let's call
are lengthened, the loan portfolio
a
"short-run"
the remainder of
may be charged against current
loses liquidity. A lose of liquidity
income. If the securities are re¬ 1960 and the "long-run" the more
in the loan
portfolio should be
placed by similar issues, bought indefinite future.
compensated by an improved pri¬
at current price levels, a longmary and secondary reserve posi¬
Short-Run Expectations
term capital gain is possible.
tion.

were

Portfolio

Loan

The

retail

sales, newspaper circulation,

(6) Of course, it is always ad¬
visable to know what your

.

Increasing

(2)

post

permits,

will

competitors are doing.
provide sufficient
(3) Governmental action of a
Information, such as this, can be monetary and fiscal nature to off¬
liquidity, have the first claim.
Short-term loans have the second used, not only as a basis for better set
these
recessions
will
be
priority while
long-term loans management of bank funds, but pressed with vigor. Deficits larger
also
to
facilitate
a
program
of
and
investments
have
only a
than the $13 billion in fiscal '59
residual claim. Long-term matu¬ business development and public
may be expected. This will pre¬
relations.
rities carry a greater risk and, in
vent

days or more highly liquid and carry little risk.
For the month ending They are, as has been indicated
1959, the percentages earlier, secondary reserves. v

overdue.

7

trend

will tend to restrain the up¬
ward pressure on the price level.
and

to

adequate

30

is

installment

ual bank.

have a
funds.

secondary reserves,

and

Primary

delinquent install¬
ment loans. The ABA Commission
defines a loan as delinquent if an

stated,

viously

their effects;

:

This

years.

likely to cause future recessions to
and be more severe than previous

(5) Economic information, such
as: automobile registrations,

building

Long-term investments
claim
to bank

for

centages

Averages, as has been pre¬

years.

Thursday, April 14, 1960

com-

./.

(4)Seasonal variations

Investment Portfolio

residual

the

munity;

V

balances and

within

income

of

utilized for
of the
secondary reserve

and

primary

an

ing higher cost

U.

.

Changes in the distribution

(3)

seasonal

on

management

better

the

The

adequate credit file is essential if
losses are to be held to a mini¬
mum.
The loan portfolio should

,

credit demands can be

businesses.

affecting individual

liquidity is probably more
influential in curtailing the use
of credit than is the accompany¬

has

variations in deposit

analysis of the credit worthiness, position.
and of conditions

bank

money

Information

of the borrowers

profitable than in¬
fact, the decline in

usually more

thorough

situations call for a more

Loans are

is tight.

money

Such

be.

will

borrowers

ginal

bank

pated.

of time, it is more difficult
determine just who the mar~

to

1956

June

the

period of years,

in

riod

7

page

above

well

a

Funds

Management of Bank

when

. .

and em-

(2) Trends in income
ployment;

keeping an experience

still

Chronicle

Commercial and Financial

(1630)

Oil

Well Cementing

will

luncheon
meeting of the Investment Ana¬
lysts Society of Chicago to be held
April 14th at the Midland Hotel.
be guest speakers

at the

Number 5942

191

Volume

.

.

The Commercial

,

and Financial Chronicle

(1631)

ment of

Financial Environment
Of Puerto Rico Today

The

By Dr. Rafael Pico,* President,

Development Bank for Puerto Rico

Government

in creating a strong and attractive financial

At

present

the

Bank

annual interest rate

loans

rate

loans.

and

for

Loans

commercial

of 6%

types

industrial

building

of up

to

for

Slightly

a

other

for

of
and

purposes will
a

term

15 years.

When the collateral offered consists of machinery and

Office

equipment, the life of the

also

provides

prospective

borrowers with information about
the

charges

normally be considered for

balanced program of economic and social progress,

Rico,

to
keep in constant touch with
mainland investors. The New York

higher

Bank performs; briefly outlines the role of the Island's
other key agencies; and pictures for the investor how the pace and
direction of economic development is determined in order to achieve

with conditions of the money markef-as they affect Puerto

dustrial inventories in exceptional
cases when such loans cannot be
handled by private
sources, and
; (4) hotels or other essential tour¬
ist facilities.

industrial

functions his

ma¬

and it enables officials of the Bank

*

environment is reviewed by the author. In addition, the head of
the Government Development Bank details the several important

a

commercial

or

in¬

an

Puerto Rico's progress

industrial

buildings, (2) acquisition of
chinery and equipment,. (3)

Bank's

lending programs.

Government, its public
and"
municipalities,

i

_„

•

-\t

Uppenheimei\ Neil
rn

A

1

Ti

10 AClITIIL

clYTXIPT*

I

X ai 1/1AC1

Oppenheimer, Neu & Co., 120
Broadway, New York City, mem¬
bers

As financial advisor to the Com-

monwealth

^

15

of

the

New

York

change,

on

May

1st,

Stock

will

Ex¬

admit

Michael A. Dritz to
partnership.

"
corporations
the

Development

Bank

recommendations

actions

have

conditions

or

submits

regarding
which

all
may

bearing on the capicity of
borrower to use or receive

B. W. Pizzini Co.
m

any

*

-»

•

rn

,

If) Admit

a

V

WO
\

'

v

credit

financing. It also advises ; B. W. Pizzini & Co
concerning any specific financing Street, New York City

Broad

25

members

accepted that the luxury
items, which
bear
the Qifn.way n?
exceed five years, plans, proposed legislative- of the New York Stock Exchange,
strong and attractive heaviest tax burdens. Yet, in spite/ fra^^^unlw18 <^/mCaS*°
y changes> PF special economic pro- on May 1st, will admit Robert M.
financial environment is of funda- of this moderate tax program, ?tanc|s
SpGClal circum" ward
gramsa whlch
may contribute to- Pizzini and B. Winthrop Pizzini,
more orderly development
Jr.
to
partnership.
Robert
M.
mental importance in promoting .total^revenues of the 'Commonwealth
Government
de1X1~
Pizzini will acquire a
have
inThe Bank wil1 normally lend up of the economy.
economic
membership
}creased from $109 million in 1950 J0
in the Exchange.
tke
appraised
value
of
/
The
Development
Bank
convelopment. In
W $224 million in 1959—a clear land and improvements and up to tributes in other ways toward im¬
On, April
30th,
Frederick
J.
Puerto Rico, a
vindicator of the benefits derived
*
appraised value of provement of the financial envi¬ Pflugfelder, member of the New
great deal of
in
Puerto
Rico.
This
from Puerto Rico's industrial ex- machinery and equipment offered ronment
York Stock
attention is
Exchange, will with¬
nansion
1
as collateral. The percentage ac- includes participation in the Fi¬
draw from the firm.
-J'*
given to this
tually loaned depends upon such nance Council of Puerto Rico—a
aspect of the
§L Role of the Development Bank
factors as the
generally

if

creation of a

•

development

When the development
program'

process.
Through- a

%t \

:0p4'

long--;

wM

finan¬
cial and fiscal

JIB

the

*

range

planning,

has

/

; J

financial

position,

•

from

ward with confidence.
,

.

,.

the

and

the general pattern for
deve opment is outlined

economic

the

by

Legislature

the

by

Rico

Pueito

Planning

Board—one of Puerto Rico's

the

prin¬
agencies. On

development

cipal

basis

studies

of

determine

conducted
trends

economic

prospects and in the light
fiscal

submits

concerning

this

distribution

of

governmental capital expenditures
—thus

assuring
of

gram

balanced

a

economic

pro-

and

social

In line with

sighted

the concept of a

of far-

Droerammin?.

balanced

covering

current

forms

part

in

of

Puerto

prescribes

appropriations

o n

have

Con¬

exceed

Capital
other

a

investment froni

its

1m-

hand,

own

debt
less

of

budget.

conserving

of

the

and

pansion

uorn,

current

policy

industrial
„

if

tn'v

taxes

distnhm

other

to

assure

iS wil1 remain at
mls and equitably

^

Tax

policies

have

to.meet the needs of
gx0wing economy. Profuac Prs are taxed at low

ramriu

f

^hereby

nomir

Him

mi!

T

creating

an

eco-

clu-

conducive to industax PYp3ps5 y* Aside from the
Puerto D?pr10n
Program,
under
trial

.

.

a etuxuiiom

fpm

with

Bank

asnecta

Pnovtr.

the

sphere

•

of

us

tax sys-

S' .corporate

taxes are lower
an, m """"
the mainland—rising to a

tm °f °nly 36-75%»

mainland

corpora-

the

Bank

the

thaLsuit the U. S. capital market
and the character of the borrower,

■//"■ /■'

/

s

T„

,w:

In

"/■■•'/.':

as

private lend-

this
a

role

monwealth

Bank is designed to supother available credit
£0urces- Thus it functions in perharmony with the commer-

the

*...—-

Bank

functions

direct link between the Com¬

nancial

and

the

mainland

fi-

community,

Curtis

in

p0inted

Chicago,

has

been

Vice-President

and

ap-

Sales

Provides Information to Lenders
j

whenever

ducts

other

possible.

r"T% 1

Bank

with

,;

aimed

maustnai aenamg This

(EDA)

the— Puerto

and

growers

Industrial Development. Co.
(PRIDCO). Firms needing finanassistance

Bank »by

the

.

referred to the

are

Development

ministration,while
minisirauon,
wnne

program

is ;

Rico

and

£he mai"landdesigned to

sure a free flow of
about. Puerto Ric0 s

Rico

cial

furthering

at

Puerto Rican securities among fi-

SrouPs. in

?.g

con-

information

knowledSe of Puerto

^„

.

extensive

an

program

The
with

? s

perf0rming the task of bor-

row|ng agent, the Bank also

actively encouiaging
loans

T

^

Ad-

prospective
prospective

to

Put & Call Forum

among c

commercial banks in Puerto Rico.

^

arising
from the .exchange of
'chfecks—th'dS greatly reducing the
"float," or uncollected balances.
In all the ways that I have mentioned
and many more — the
Commonwealth

cJaJ banks and other lenaing in-

stitutions

for the clearing of checks

The

Association

as-

information
public

bor-

lending institutions and

other investors both in the United

states and in Puerto Rico. An of-

Customers

Speakers will be John Thomas,
Thomas, Haab & Botts; Herbert
Freiman, S. Lerne Co., Inc., and
Paul

Sarnoff,

Thomas,

Haab

&

Botts. >;>
■ ..-/■•
'•
The meeting is open to members

Government

has

been

directing its efforts toward
the development of an integrated
financial
community
and
the
achievement

of

high

degree of
cooperation among many agencies
both
public and private. These
a

efforts have been oriented toward

establishment of

the

progressive

sound and

a

financial

system—an

important step towards achieving
Puerto

Rico's

goal of

a

more

overall

economic

only.

Form Jarco Securities

-

Jar,co Securities Co., Inc. has been
formed

St.,

gage

in

ficers

City—at 37 Wall Street

68

at

Wil¬

City, to en¬
securities business. Of¬

a

York

J.

Gerrard

are

and

Jackman,

Treasurer;

Joseph

A.

Riley,
Vice-President;
and
Anthony Libersky, Secretary. Mr.
Jackman

and

formerly

with

mill

&

Mr.

Riley

Shearson,

were

Ham-

Co.

abundant life for

Joins M. B. Vick

address

by Mr. Rafael Pico at
conference sponsored by the

briefing

offices

New

President

all of its inhabitants.
*An

with

liam

fjce is maintained by the Bank in
New York

of

Brokers will hold a put and call
option
forum
on
April
20th.

—

Picment

establishment

that
t
of

expansion

or

B:nkm„7iNe:ndy;l,k, To/ a^1,

9r?2?0 maximum

com-

in the

Sia\"^ \he

lmP0ltant_ t0
In

program.

has
tion

with

and

in

the

CHICAGO, 111.

—

Arthur R. Baer

associated

has become

with M.

B.

120 South La

Salle Street.




a

solicitation of

no

an

circumstances to be construed

offer to buy

any

as

an

of these securities.

offer

to

sell

or

The

offering is made only by the Offering Circular.

PRIDCO

in participa-:

April 13, 1960

NEW ISSUE

the Development Bank,

other

been

cases

sold

to

enterprises

PRIDCO loans
the Bank

have

after

Harve v Boat Works, Inc

demon-

1Satisfi3Ct°ry °PeratinS
The' Development
consider

Bank

applications

loan

(an Oregon

corporation)

will
for

Offers

prjvate projects which would ad¬
vance
economic
development m
in
vance
ecoriuriuc
ueveiupmem

Rico,
particularly with
respect to increasing 'industrial
product ion" and employment.
Loans are normally approved on
the basis of the Bank's evaluation
of the anticipated success of the

Puerto

100,000 Shares of Class A Common Stock
(par value twenty-five cents)

The Company is engaged

project, as well as the credit history, capital structure, and the
production and marketing experi,
ence
applicant. Firms
eiice of
ot the
tne applicant,
riuns that
uidt
borrow from the Bank may be
new
or
or

or

long

established, locally
exempt

externally owned, tax
subject

to

taxation,

large

in the manufacture of fiber-glass boats,

swimming pools, and other plastic products.

OFFERING PRICE: $2.25 PER SHARE
■

Copies of the Offering Circular may be obtained from the

undersigned.

or

small,

Type of Loans Financed
The

following

categories

•

Walter R. Blah a & Company, Inc.

are

J!' kxFlse ta^es have also typical of the types of loans which
toum—j!!0Vex
or kept at a mini- the Bank will finance: (1) conxcept on
or

as

development

cases

made loans

also

have

tlie

some

dev^ment

been

non-essential

This announcement is under

narriP1Ilar enternrises would oe
particular
enterprises would be

mavim

Pared

Rico,

Ricn's

Puerto Rico

/t ■•;/;:/

,

Puerto

for

of

ent

of

aspects ot

economy.
In

devel

and

linancial
Unancial

of

seeks,to meet the financial needs This system established with the
—c of all pubhc entities on an orderly cooperation of the New York Fedthe ex-.bas's' V,sl"g £?ri?s o£. borrowing eial Reserve Bank has facilitated

and private institutions in

5on

tions

i<3

■

responsibility

with%ther

coUaborating

+

* ,en

t

and

Ste?s

H8
i

Routed.

rates

charged

Pities and the /public

Rico's "public

the

ex¬
*

+

duction

puert0

Brieflv

ofZbUc

-x

modomfo

a

of

mingults = tax programs,
i°*
a*so used d^s-i

cretinn

that

consis-

receipts.

ch

Puprtn

0£

hodies

credit

improvements

In

an-

Com-;

govern-:

has

a/

°"program
n

amounts

The

Rico

its

to

^
MINNEAPOLIS, Minn.—Roger C.
LaCroix, formerly Sales Manager
for
Paine,
Webber, Jackson
&

rdz -■Tis'Kt

requirement

5%

maintained

current

all

Calif.

present

service

Puerto

.

member of the

A"n£)PT"IP Oil

'""M 10 «>">«> »b«" " « W

than

monwealth

a

LaCroix Joins

functions

permits close day-to-day contact

h„

only $37, and the

enuy

principal

rSources lending standards of' the Bank

Commonwealth currently

ment

two

borrowers that cannot meet the

of

minimum—per capita debt of the

takes

t'j/ties that contribute to the de- opment Bank is

a

combination

axs-i*01

oual

Council is to make recommendations of a financial character to
the Governor through joint consultation and research. The President of the Government Devel-

—primarily to help in connection
activities. This
wjth fiscal agency
agency activities.
This

uY,""ru

ernment through

to

for

tration

not

been

Public debt

these"

-

functlons with operations of the
S Economic Development Admims-

current

the

on

s"

that

may

revenues.

provements,

of

Rico's

fact, the Commonwealth

current

one ;

budget
t i

o d e r a

iln«nnHv if
philosophy
of government

stitution

help

financial field. This institu-'

has

lenders

this system

financial

a

_

several
implement

Development Bank'
destined to play a vitalrole-

participation

progress.

basic

to

projects; :

*

of

o

of several high level gevernment
officials and others appointed by
the Governor. The function of this

ve£oPmeI*t of the, economy. A first Council and the Economic Re- ]\,janayer 0f Apache Oil Corporasupplies medium and long--it
mortgage is required except under search Department of the Bank uon ft
been announced
term financing for private -busi- sPeclal circumstances.
serves as the Council's Secretariat. . "™' 1
as D n announceaness
purposes, and it acts as fiscal
A? fiscal agent for the CommonThe Bank also serves the finan- rustomers Brokers Hold agent, or official borrowing agent
wealth Government, its munici- cial community as settling agent • ^
"IUK.erb ncnu

of the

recommendations

the

—Was

to

and

available,

resources

agency

various

Legislature

established

financial advisory group composed

,

......

Within the framework of policy
Governor

Rico

key/ agencies

tion

which its economy may move for¬

set

_

Puerto

in the

Dr. Ra.ael fico

achie ved a

sound

the

agencies—the

Common¬

wealth

1940's

„

system of pru¬
dent

getting underway back in the

„was

significance of the

borrower's operation to the development program, the profit exPectancy of the operation, and the
resale value of the collateral.
These normal collateral requiremerits maY be waived by the mana§ement on loans of up to $10,000
to sma11 businesses engaged in ac-

^truction, expansion and improve-

29-09 Bridge

Plaza North

EXeter 2-7500

Long Island City 1, N. Y.

16

The Commercial and Financial Chronicle

(1632)

I960 U. S.

.

THE MARKET

Texas IBA Group

Crop Prospects

.

>' \

.'

4

••

'I

Elect for 1961

-

.

Thursday, April 14, 1960

AND YOU

...

.

„

.

...

BY WALLACE STREETE

By Roger W. Babson
DALLAS, Tex.—The Texas Group
Bankers
Association

outlook for
agriculture in 1960. Assuming favorable weather, and despite de¬
creased acreage, spring wheat is expected to be in ample supply
for 1960-61} a slight hike in corn planting should assure a plentiful
harvest; and lower price for beef is seen in larger supply whereas
In

a

by crop analysis, Mr. Babson discusses the

crop

1960

early

the

in

£Tpe"plantings E
and

increases

no

dearth

general.

*

" •

^

Grains

Feed

intend

Farmers

-

to

plan to cut acreage 1.3%.
Last year's crop was large and
competition from other protein

foods will continue keen.

only

f|earyago° whenefreecorTcrop

laOU-iyOi

llCCUa.

uUlgiruin

supply,
since planting intentions are down
only 0.4% from the 1959 acreage,
which produced a whopping 579,000,000 bushels. "

Indicated ^acreages

and oats

are

respectively,' from
However, this is

barley

for

down 3.7%
a"

and 5.2%
ago.

year

no

cause

for

alarm, at least in the case of barley. Last year's crop was 32%
above

average,, and

total

stocks

he fivewell over the
fiveyear average. In the case of oats,
the
1959
crop was
the smallest
since 1939, and total stocks are

recently

were

—

sharply under a year ago and the
five-year average. Crop progress
of this grain should be watched
closely this

since

year,

in a

supply situation.

wheat

y

^

a

Including acreage planted to
winter wheat last fall, total acreage will be down less than 1,000,ago.

000 acres from tnat
uuu
that

1959

which

crop,

the

1958

above

planted for the
well

was

outturn,

but

me
the

price
- support
price support

level.
level.

Lven
Even

though a record crop could be produced on this acreage, it probably
need not prove burdensome. The
longer-term

trend

longer-term

of

trend

total

or

eon-

total

con-

sumption still appears to be

up-

ward.
iw

1949~1958 average

dation is

little

more

acreage

a

to rice than

a

Any production increase

year ago.

DO YOU

ytT'lU

P<j
Qi

VV ltll

T71_
Tjy

I

bieHl, i? FeUlK

Out-

year.

standing in the hog situation
indicated n% cut m the
-x

•

is

an

1960
spring pig crop compared with a

earlier. This
higher pork prices.

could

year
i

realize, of
to

planted may turn
larger or smaller than

be

indicated

in

could

a

U.

acre-

actually

ages

out

mean

that

be

this report;

fairly

good

but 1960
year

U.

Meyer

&

Fox,

325

changes.

j

Both

formerly of-

were

-p.
.

-

,

ttt.,i

Jf. 01163,1 ll6r W lth
^

Do you know wken to sell and cash in
of

investors

ANGELES,

Sheather

has

on

YOUR market profits?

think investors will be

we

eager

to read this

monograph—"WHEN TO SELL STOCKS." It sets forth the
for selling stocks and
clearly defines the 9
proven

when

warn

stocks

are

too

new

guides

market signals that

high and sale should be considered.

outlines which stocks should be
sold first
For

timely

7 basic

department

of

P.

associated

First

j

protecting capital and intelligent defense of market
profits, this
is must
reading. Its cost of $1, may save thousands!

,T°Urv0Wn

C°-0y

W,il k* ru,l,e<i

to y°u immediately

dollar. You may use the order
form below if you

California

Company.

25

PARK

B.

DANA

on

receipt of

one

desire.

II,

member

of

the

E.

New

York Stock
a

Exchange, will become
Vice-President of Hineks Bros

enclose

SI.

Kindly

Name.

rush

my




Tt

ic

is

copy

of

"WHEN

TO

SELL

STOCKS"

to:

j

+u

fart

now

•*

as

a

shows

JS??.

'

,

J

Aluminums
The
also

Stirring

aluminum

business

is

where competition is
keen but confined to a hand¬
ful

one

of

companies. The huge
needed to get into
aluminum production is the

capital

utilities as its chiet holding limiting factor to keep pro¬
replacing the long-leading oil duction in the hands of rela¬
group
by
a
comfortable tively few basic producers.
S

•

,

comnanv

"

.

The

„

the

m

fund

management

stocks

Ts Investors
investors

stocks

aluminum

havpn't

hppn
i

skvrnekpfs

f

xi

ixu

in
u

[eCentl7' although

w

^
2
Jately they have shown someL'iversll16d oervices, which
Qf ^ change in investor
^

also

was

active

.

first in

a

market

having

for

its

an
shares

fayo^

The

producers

were

busily
building
production
"J
*
» up
-r?
°Utpounng 01, facilities, fully confident that
other investment
l
+
A managetheir metal is a real growth
ment
company s hares last one
But then the
nr;nr

r

over.pro-

a

orwvG

l

Auction

was

stressed

so

wide-

"om

lndlcated that the Securities
& Exchange Commission

,s

^

was

frowning

on public participation in such shares. But then

Kaiser Aluminum is

an

in-

fant among American corpo-

Exchange, will

good

a

MentrandnEAConZjghrPh"ui?pS;
V"fnt'
and.jn s°mecandidate
quarters ium,
Ltd., and Reynolds
Controller.
is considered
Metals.
a

for

F orm

dividend

a

current

Sydie,

Sutherland
RitehlP 1UULIlCIldllU,IUlUlie
time
and

D.

Max

S.

Ritchie, for-

Ltd.,

and

the

firm

of

name

the

latter has been
changed to Sydie,
Sutherland & Ritchie Ltd. Offices

a

'Officers of

the^ew

E.

J.

Sydie,

Howard

Ritchie.

S.

Ritchie

are'jlhn

firm

Logan

Sutherland,
and
«

D.
*

Max
<

an

..

The

is

'

But there

room

for

;

/

_

more

trading for only about
Vendo

Q0 0f America, once the sole
producer of the .metal. And
Alcoa is still

one

of the better

Corp.

the

—

structure,
diversification and able

soundest, financial

,

nterestmg New Arrival

is

*

*

values in the field
.

_

is

wide

One item available in listed

month

*

*

$5

e^ec^ at this

e ln

year ago.

.

rate

The giant of the aluminum
increase from business is still Aluminum

?
plenty of
imProvement.
T

increase.

indicated

annually,

Street

City.

solH

an

is'a membe/of its annual

merly of Ritchie Bros. & Co., Ltd.,
have
joined
Sydie,
Sutherland

7, N. Y.

Gentlemen:
I

aL"

^port indicated a rations, only 20 years old. But
jump in earnings last the measure of the growth ol
membership in the New year to $10.68 from
$8.80, and the aluminum industry is the
I°jJe
e also; ?,th^ru of" the stock has been doing buildup in Kaiser sales to
President and Treasurer- Joh^w' better lately. With such com- well past $400 million in that
McQuade, Vice-President; Good- P a n i e s' expenses
generally short span; which leaves it
win Stoddard,
Secretary; Rudolph small, the need for cash is not only
slightly behind Aluminfirm, which

Ritchie

CO.

PLACE, NEW YORK

li u u

•

for

EDMONTON, Canada—Howard
WILLIAM

01

mutual

formerly in the underwriting

was

nf

.

It also

booklet

COm-

The high-priced item

Hayden, Stone & Co., 5657
Wilshire Boulevard. Mr. Sheather

acquire

who

u

_

Calif.-John

become

the Midwest Stock

buy stocks soundly—even shrewdly—
falter when it comes to
selling. Too many stand by helplessly while
prices and their market profits melt away.

Accordingly,

v,

third of the

margin

(special to the financial chronicle)

LOS

mattPr

WJJr

f

H^VflPTI
SfOTIP
J FO/j ClC/lij DLUIIC

the

'Z/r

ARTHUR GRAY, JR.

Thousands

v

a

vending equipment SOld. It

though

even

v

West

ficers of Oscar F. Kraft & Co.

COBLEIGH

'''AND

.

ihuaij

vending pmiinmpnt

rrinst

Frank,

Jr. and Verner H. Kraft
have become associated with
Stern,

S. farmers.

WHEN TO SELL STOCKS"

fh

of the investment

Hincks Bros, to
Tno1' *
Be NYSE Member

IRA

>

counts for about

lor me most,
xwx
a case of gen-

P31?? Portfolios showed them
quietly picking up selected

Kraft,

with

course,

f

range

some

Murray

DR.

wuuv

pretty clearly
eral neglect,

xL

KNOW?

By

tuv

LOS ANGELES, Calif.—Oscar F.

BRIDGEPORT, Conn.—Thomas
u

narr°W
liauuw

_1_

York and Pacific Coast Stock Ex-

Consumers

likely this

J

under

plant

vv/

"

should buy beef for less during J
I960, although no runaway liqui-

favorable

to

vv v/i ixlu

101,520,000 head—up 13% from the

anlPle total supplies for 1960intend

JLI1L., Lfducld) AUUCll

Eighth Street, member of the New utilities. Lehman Corp.,

siHioti™

Cattle and Hog Situation

1960 crop, plus the
carryover next July 1, should proGrowers

oclUllUcb

_

weather, the

1961.

man>

i

somewhat

Given

average.

*or

Fosdick, Eddie-! anything decisive generally./was 5% and last year the inPollok & Fosdick, Houston; It didn't stop individual Situ- crease
jumped /to 10%. A

*

The number of cattle and calves
farms hit
a
record
high of

year

dazzling adjectives t o j d ethere was little incentive scribe the field. The 1958 inthe stock market to do crease in merchandise sold

obvious candidate for some
the 25th anniversary meet- aRy>
Texas Instruments better dividend ; action, since
The star performer, as far as |ng 0f the Texas Group,
|
among them and also posting the 60-cent payout was well
planting intentions go, is the vera
new
peak, the highest in covered by last year's $1.94
satile soybean, with an increase of
6.4%; this would be the
history
for it.
"
.' *
earnings and an increase to
second:(^
J
p.
highest acreage on record.
record. SJoy^
SoyAli*
*
*
$2.60 or better is anticipated
nJt
Si VdlJA;! TCT2ft,
'
Rails and utilities held in a this year.
•
in their product, despite cuts in 136 VPTTIPT*
iVLaiL

plantings of all spring
from

pions of the vending machine
system 01 merchandising use
-

tively small and remaining stocks c. Moroney, Moroney, Beissner & in
30 years. Electronic favorrecently were only about 50% of Co
Houston/ Charles C. Pierce,
wprp
ako
to show
the five-year average for the date, Hauscher, Pierce&Co., Inc., Dallas. ltes were, also u able
able t0 snow
supplies for 1960-61 should cause ;/
attPnd- on some Sood Sams occasionhigher
higher prices.
prices.
ance at

\

down 4.6%

are

.

Dail'as; John*Jay

The acreage trend

tight

Grains, Beans and Potatoes

Intended

fruit and pastries. The cham¬

Strength

omy,

Committee;men—RobernmnSJv

on

Food

Selective

at Dallas.

*

any exten-

damage could result

>

Second Vice-Chairman —Lewis
Lyne, Mercantile National Bank

Houston*.

Flaxseed Down—Soybeans Up

"

also should be in generous

larg¬

.

of

A lot of this

vested.

Newton &

Lentz,

ban Antomo.

which acSecretary-Treasurer: Tom Ball,
Wlth easiness in such imcounts for the bulk of the total jr., Brown, Wareing, Ball & Co.,
portant segments of the econ-

'

the

as

weighing heavily on the over- its product line covers a wide
all - economic • picture -wererange ; of applications from
Co., auto inventories at an abnor- cigarets, coffee and candy to
such specialties as
mally high level.
canned

and fall potato acreage,

hi°gke°e

Vendo is billed

position

highs,

Vice-chairman—Frank R.

,

bushels was harold-crop corn

4,361,000,000

Summer

%%%- S1>fpV?1?y
plant

First

of

a

new

bel™ 80% serving to chill est maker of automatic vend¬
rallying tendencies. Also ing machines in the world.

Rowles,

R.

the roster of

on

Winston & Co., Houston,

Rowles,

Newton

only moderately under a year ago.
Here are some highlights of the
outlook for the farm situation in

sive

glut

growers

covered

16 crops

be

Chairman-Russell

the

not

six

decreases, with

ten

the total for the

should

this week with a
steel
production

adjournment of the next an- tory action
nual meeting of the Investment decline
in

fobeTeld^thffan:01 *****

certainly

should

is the fact that the market.
Government's
recent
report
on
There

Stocks fell back into desul- in the limelight and

the

outlook

crop

.

?owfngeofficersSto''take office°at

hog production indicates higher prices.

cut in

Outstanding

Investment

a

to finance its

expansion from

internal funds. It wasn't

It to

duck

the

bad

able

effects

of

bowed"in earlY in March, and overproduction, however. But
had

a

fairly routine trading from

untd interest perked up
this week and

gave

it

a

ings

a

low in 1958, its earn-

have

been

expanding
has

day steadily. This the market

Number 5942

191

Volume

.

.

.

The Commercial and Financial Chronicle
(1633)

recognized since the
is available at a dis-

vet

nnt

stock

of

rfiunt

specific issues.

search
rather

on

dozen spirited price action,

three

some

little effect

Where missile contracts breed
govern¬

ment awards to such firms

Joints

are

shrugged off

Two New Ltd.

pointedly.

[The views expressed in this article

below the 1956 high.
only shares that have Martin, Aerojet, Westingbettered their 1956 high in house and General Electric
the aluminum group are those for nuclear equipment and re¬
of Reynolds Metals.

as

do

The

not

cide

necessarily

with

They

are

author

those

at

those

as

stock
ber

of the

change

only.]

change,

old-time standby that

off for one com¬

still paying

is

is the familiar glass con¬
tainer. And Thatcher Glass

pany

despite the inroads
recent years by paper

Mfg.,

made in

still gets some
of its volume
from glass. In the decade of
the 50's,
moreover, it was
able to lift sales more than
containers,

nine-tenths

R. GRACE sCO.

a half
times, and
earnings comfortably

and

two

boost

reports on 1959

despite the costs of diversifi¬
cation and new facilities.
*

*

❖

r

Thatcher, moreover, would

neglected item
with a yield

Chemicals lead the way to

approaching 43/4%; a price
range of only half a dozen
points all last year, a tag cur¬
rently below the 1959 low;

over-all improvement

to be a

seem

in its group

even

and

of

discount

a

some

In 1959
than

points from the 1958 high
when it worked above 38. So
year its range has
only a shade more than
~three points.

the

high-yielding item

for

asm

lic

sharply last

waned

enthusi¬

slated

of

was

pany

year.

For

Combustion Engineering sold
far higher in each of the last
four years since
in 1956.
*

a

stock

off last

slid

11%

peak of
pects

are

and for
since

year

from

has been

pros¬

bright for this

year,

years

wprk to

ergy to

with

in the

up

high. It

forefront of

harness nuclear

producing

romance

its

to

en-

has been

this

its profits
because
cost

of

development.

a

research

But it is

drag

of the
and

solidly

and any dramatic
breakthrough to make nucar

power
plants feasible
would not find
the firm lag-

technologically.'
*

-

1958

1959

Sales and Operating Revenues
Net Income After Taxes.
Per Share
>•

$434,234,391

$ 14,827,290

$ 10,039,855

of Common Stock........ $

Cash flow per share
Preferred Dividends Paid

$

'

Common Dividends Paid
Per Share—at rate

Stock Dividend Paid
Net

$469,695,671

on

of

Net Fixed Assets..

Stockholders'Equity per Common Share.
Number of Common Stockholders

.

3.04
8-34

;

2.07
7.51

;

$

$

928,664

$

928,664

$

7,343,155

$

9,692,815

$

160

$

2.20

•

2%

—

$138,135,774

$130,295,418

2.5 to 1
$232,735,277

2.7 to 1
$221,931,925

Common

Working Capital...

,,

$

47.77
30,052

47.44

$

28,052

aspect

m % field

Slng

(New Jersey). a
copy of the Company's 1959 Annual Report,

affairs, and, in fact, the

eavy

c

synthetic jet lubricant esters,

Current Ratio

power com¬

uclear work has been
on

*

a

in petrochemicals; entry into the manu¬

Year Ended December 31

unfilled

all-time

mercially,
but there
lttle
ot

of

independent refiner and producer with

Highlights of the Year's Operations

ahead,

equipment takes

an

lower.

majority interest in Cosden Petroleum

a

all-time

to several
years to deliver and
it ended

orders at

were

Square, New York 4, N. Y.

<

1958, but the

1959

an

after sales

the

several

its

be difficult in the

to

*

Net income for Combustion
was

as

were

published, write /to the Public Relations Dept., 3 Hanover

split

•

*

improved and exchange rates

as well as p
Chemical Division; and
completion of three successful wells in the Libyan oil
exploration venture in which Grace is associated with
Texas Gulf Producing Company and Standard Oil Com

they
7% in

spending this

.

higher

ticizers, by the new Hatco

when"

"

increase

an

facture

when utili¬
capital spending

rebound

purchase of

strong position

rather

by 10%. But then there
little

conditions

Corporation,

year,

ties cut their

their

the

suppliers to the pub¬

utilities

%
were

Important developments of 1959 and early 1960 included

generating

investor

operating profits.

shipping industry and Grace Line profits

Here, again, there
producers

The

amounting to $14,827,290.

-were

stable. Conditions continued

more

time is Combustion En¬

units.

share

addition, Latin American earnings

economic

gineering, important producer
of equipment for the
public
aren't many other
of large steam

year,

48% higher

earnings of the chemical divisions, which contributed

In

that has been out of favor for

utilities.

per

68% of total pretax

High-Yielding Opportunity

some

previous

were

$3.04 compared with $2.07. The
major factor in the improvement was a substantial rise in

been

Another

the

in

Earnings

this

far

earnings of W. R. Grace & Co.

10

*

The entire
nuclear field has




w.r.GRACE
Executive

brokerage house and

of

Old-Time Standby
The

Chairman of the Board of I. Mil¬

Company, 42 Broad¬ ler & Sons, have joined the com¬
New York City, money and pany as limited partners.
D. H.

way,

time coin¬

any

Awad, President of E. Awad &
Sons, Inc., and Michael A. Miller,

D. H. Blair &

of the "Chronicle."

presented

Partners

Join D. H. Blair Co.

17

& co

Offices: 7 Hanover Square, New York 5, N. Y.

the

and

mem¬

New York

Stock

Ex¬

American

Stock

Ex¬

announces

that

Dewey

Blair

&

nounced

Company
a

recently

an¬

reorganization of its
general partners and an expansion
of its operating facilities.

Financial Chronicle

The Commercial and

of

(Number

bank

national

in

detroit,

of

michigan

BANKS AND BANKERS

Mar

due

Cash and

403,689,122

384,549,754

holdgs.

478 569,248

543,143,394

discts.

773 ,293,875

775,112,415

profits-

28 ,285,984

25,894,640

banks—

from

Govt,

S.

curity

York
announced
on
April 6, the election of C.|
Anderson
McLeod
as
a
VicePresident.
Mr. McLeod is with
the bank's Wall Street division at
30 Broad St., where he has served
New York,

Co.,

Vice-President

Assistant

an

New

Bank

Chemical

1955.

since

Appointment of Michael Van Den
Bergh as an Assistant Secretary
of Manufacturers Trust Co., New

announced by Horace
Flanigan,
Chairman of the

York,
C.

was

*

*

*

'•

Flanigan, Chairman of the Board.
Mr. Curry came to the bank in

U.

of the First National
Maine, with

_____

Cash and
S.

Govt,

tional

*

*

*

Co., New
named VicePresidents, it was anounced by
William
H.
Moore,
the bank's

$

the

;
'■

A* '"

'■■

A:'

■

Deposits
s.

Secretary

Assistant

in

Vice-President

Assistant

to
the

Division. In
Department promotions,
A. Stevenson, formerly

Investment Advisory
Trust
Malcolm

Officer,

Trust

\ssistant

an

named

was

Assist¬

an

Kenrick

Officer.

Trust

ant

W.

Prescot, of the bank's London of-

been named

has

fice,
ant

Assist-

an

Manager.
*

*

*

new

york

Mar. 31, '60

Total

174,330,716

banks

Undivided

By

stock

.

a

dividend,

Rockville,

—„w'

capital stock

common

$300,000 and

to

14,000,

:
New

Bank,

the

and

.

building at Madi¬
47th

M.

St.

*

*

Bliss

Dar

value

*

*

$25.)

*

p

tlonaI
Bank of Akron>
°hl<>, in-,
creased its
capital stock
common

from

$4,542,720 to $4,724,430. Ef¬
fective April 1. (Number of shares
outstanding
472,443,
par
value
$10.)
*

*

#

Director

of

National

Bank

the

according

12,

nouncement

Jr.,

bank

to

an

Albert C.
Chairman. Mr.
by

is head of the

on

an-

the

Bliss

bank's Trust Divi-

New

York

.

.

,

joined
in

connection

Trust

Division.

Investment
T31-

Bliss

1931

with

Company

rpi—

t~>

The

Bank

after

the

in

i

of

Equitable
York.

Having started in the Investment

&JSS1
Department, he
pointed Vice-President
Since

Division. He

was

,New

McRap joined The
York

in

1930.

He

a
Vice-President
Digitizedpointed
for FRASER


Trust

Co.

of

1?
S wS
u!L? a

•

_

vacancy created by
J S"!.
2
iA*
,y> who has
been an active Director of Cona

tinental for 26
*
A

T

x,

u

years.
*

\

Bank of
was

in

ap-

1942

.'v.

*

.

A '.-/.vy

(,

value $100.)

:■'{>'%■

,'--'yy*

i

u

a

^

in Bar-

First National Bank

by a stock
its common
capital stock from $1,000,000 to
$1,250,000.
Effective April
1.
(Number of shares outstanding
62,500, par value $20.)
tlesville,

Oklahoma,

dividend,

increased

■.'y'y,

;,5'

The

National

business

commenced

April

The

has

newly-chartered institution
capital of $200,000 and sur¬

a

plus of $200,000.
officers

v

Cashier,

McEntee,

Bryan

and

Browning, Assistant Cashier.
*

,

First

The

Hills,

*

*

National

Orange

issued

The

President

the

and

Bank

a

at

March 31.

on

is Robert R. Lowe

Cashier

is

Calvin

D.

Steele. The capital is $250,000 and
the surplus is $350,000.
T
,

The

••

Glendale

National

.

to

Valley

National

Bank,

Effective April 1,
*

yy.

.

»..• A

«

Glen¬

•.>U'
■;

.

y:

The consolidation of the National
Bank

of

Alaska,

Alaska,

with

$700,000;
Alaska,

and
with

$160,000

and

Alaska,

with

$50,000
Alaska,

and

in

Anchorage,
stock

common

Bank

of

Bank

stock

of

Bank

with

of

of

Homer,

*

stock

common

of

Kodiak,

common

of

Wrangell,
stock

common

$75,000 and First Bank
Alaska, with
common

Hogle

&

Co.

and

I

stockholders.

y

with

stock

common

became
of

effective

business

solidation

of

600,000

Alaska

in

31.

effected

National

Anchorage

capital

stock

of

216,812
of

*

,,

Elm-

man

died

capital stock from $800,000 to $1,-

68.

000,000.

1912

March

30.

*

the

close

The

the unpaid balance

ation;

to

of the

purchase price of shares of

pay

Amarillo

Savings and Loan

As¬

sociation; and to make a partial
payment on the company's out¬
standing short-term bank loans.
The

1975

debentures

are

con¬

the option
of
the
shares of common
stbek of the company, at the con¬
version price of $9 per share, sub¬

vertible,
at
holder, into

ject to certain conditions. The de¬
will

bentures

optional
to 100%
the

be

redeemable

con¬

Bank

and

interest

in

par,

each

plus

ac¬

case.

par

of

value

Mr.
as

Muir
a

10,

Inc., 724 Seventeenth Street,
25-year-old
Denver
investment
banking
firm.
Details
of
the
sen,

revealed by Gerald
of Peters,
Writer and Christensen, Inc., and
Robert M. Kirchner, President of
Kirchner, Ormsbee and Wiesner.
merger
P.

were

Peters,

President

and Jack E. Ormsbee have become

voting

stockholders

They will

of

the

The San

Diego, Cal., corporation
engaged primarily in the busi¬
of holding stocks of other
companies. It owns, substantially
all the equity stock of fourteen
savings and loan associations: four
in

California;; seven in Texas; one
Colorado, and two in Kansas.
owns all of the outstanding

It also
stock

Chula

of

Vista

Investment

Co., San Diego, and Silver State
Insurance Agency, ' Inc.,
Denver,

Colo.;
stock

and
of

11.4%

of

Southland

the capital
Savings and

Loan Association of La

Mesa, Cal.

At Dec. 31, 1959, the company's
fourteen

ations

Canada,
age

of

joined the bank in

junior clerk. Mr. Muir

of

Municipal Bond Department.
Kirchner, Ormsbee and Wiesner
organized Jan. 1, 1956 as the
exclusive
municipal
and

was

only

school

bond

Mountain
written

dealer

in

the

Rocky

^tates., ,They have under¬
issues
in
Colorado,

Wyoming, New Mexico, Montana,
Utah, Arizona, Nevada and Cali¬
fornia.

is

It

a

.

fully

|

integrated

bond

house, having serviced in¬
numerable municipalities in diffi¬
cult as well as routine types of
financing.
r

Peters, Writer and Christensen,
of

member

Exchange

Junction.

the

New

York

associate

and

Stock

member

The

Junction

Grand

acquired recently in a
purchase of the Harry W. Peters
was

Investment Securities firm.

total

assets

of

$372,065,657; total loans of $317,699,688;
savings accounts, $311,611,349 and
stockholders' equity and general
reserves,, $24,512,508. For the year
1959, the company and its sub¬
sidiaries had

pro

forma combined

of $19,950,294, and net
income, before appropriations for
revenues

general

reserves,

equal to 77 cents

was
per

share.

been

added

&

to

the

of

Co., Inc., Denver U. S.

O'Nuts

Corp.

was

made on

underwriting group

an

headed by F. Eberstadt &
stock

Co. The

priced at $45 per share,
and the issue was oversubscribed
was

and the books closed.

William

President
bia

University

contribution

a

as

toward the construction of
cal

the
Physi¬
Surgeons. Net proceeds
on

of The College of

cians and

of the sale of these securities

be

received

by Columbia.

The corporation

operates

counter-service

29

a

new

Incorporated

the company opened
in Manhattan.

will

open

four

it

Manhattan
enlarge an exist¬
more

In this operation, the
specializes in serving a
menu
of quality food m

one.

clean
A
cern

division

produces

a

of

brand of

the con¬

premium
vacuum

"Chock

Full O'Nuts" label.
In

135 Broadway,

addition

to

also distributed in

the firm

in

Co.,

prices.

surroundings at low
second

New York City, specialists in odd
lot municipal bonds, has changed

Inc., effective April 1.

chain

restaurant

priced, all-method grind,
coffee under the

to Lebenthal &

a

restaurants

During the remainder of 1960,

limited

Street.

name

will

„

company

Peters, Writer &
Christensen, Inc., 724 Seventeenth

Co.,

medi¬

a

building

research

campus

with

&

O'Nuts,

Full

Chock

recently gave this stock to Colum¬

ing

Peters, Writer

(Special to The Financial Chronicle)

Lebenthal

and

founder

Black,
of

restaurants and

DENVER, Colo.—Jerrold V. Evans
now

Full

April 12 by

126,000

of

stock of Chock

common

On March 30,

staff

National Center.

Joins

offering

secondary

shares of

located principally in the Borough
of Manhattan in New York City.

DENVER, Colo.—David L. Wright

is

A

of

(Special to The Financial Chronicle)

Walston

Chock Full O'Nuts

$3,208,527,

Walston Adds to Staff

has

Eberstadt Offers

savings and loan associ¬

had

Lebenthal

the

firm.

serve as co-managers

the

packed

*

at

Jack E. Ormsbee

ness

under

shares

Kirchner

M.

office

is

of

Alaska,
$2,168,120

Robert

redemption prices rang¬ ,of the American Stock Exchange,
105% on April 1, 1960 maintain offices in Denver, Colo¬
April 1, 1974, and for rado Springs, Loveland and Grand

under the

Muir, President and Chair¬
April

of

Wiesner

on

sinking fund at

crued

at

of

$150,000,
the

of the Royal Bank of
on

and

municipal and school bond dealers,
with Peters, Writer and Christen¬

pay

Sitka,

stock

of
of

as

March

was

of

Ormsbee

has

merger

Mr. Peters said that Mr. Kirchner

Net .proceeds from.the sale of its

of

and Miners and Mer¬
chants Bank of Ketchikan, Alaska,

common

Bank,

increased its

A.

offered, 600,000 shares are
being sold for the account of the
company and
128,531 shares for
the
account
of
certain
selling

Bank,

Glendale, Calif., changed its title

Elmhurst

Effective

Pine

Florida,

County,

charter

was

James

National

J.

of $10 each.

*

.

from

Of the 728,531 shares of common

in

By the sale of new stock> the
hurst»

J.

Thomas

are:

Howard, President, F. E. Hansen,
Executive
Vice-President, Ducat

stock

-'

and

ing from

common

,

as

member of the Federal Reserve

into

<.u

9

System.

divided

,

s

organized Fort Knox
Bank, Fort Knox, Ky.,

newly

of

Frank S trie by,

interest

accrued

i960, by White, Weld &

associates.

y ,v.

:A;;yA'

*

*

with

r,

and

1,

the unpaid balance of the
purchase price of shares of In¬
vestors Savings and Loan Associ¬

the title National Bank of

*

100%

April

capital stock from $200,000 to
$400,000. Effective April 1. (Num¬
ber of shares outstanding 4,000,
par

Exchange
the

for

at

offered

were

common

its

increased

charter

#
u

managed by White, Weld
Inc., and J. A. Hogle & Co.

shares of common stock
and the $5,000,000 of debentures
will be used by the company to

Auditor of the Illinois State Bank
Quincy, 111.,

Bank

National

■Donf^ F. Balzer has been elected

*

made

*

.

Stock

subordinated convertible
due April 1, 1975, of
was
made
on

debentures

$112,500;
,

was1942.
ap- President, has announced,

Executive Vice-President in 1957.
Mr.

and

April 8.

on

m

1949, he has been head of

the Trust

was elected a
Continental
Illinois

u-

brief

a

New

Chicago,

Sim-

sion, and Mr. McRae is in charge

Si- ^a"

al'

elected

of

Z

*

a.

y7. %

■

\K.y-

*

Robert L. Milligan

Trustees

,AAA

Kirchner,

stock

Minn., changed
National Bank of
Effective
April 1.

Stewartville.

dale.

«

o

Roderick

and

stock from $300,-

*° $350,000. Effective March

York,

opening of a new
on
April 11. The

new

3,306,519

*

by yv'yyyW

5,499,387

the sale of

M/£ue'
Executive Vice-Presidents
of The Bank of New York, were

Tt/r

from

also

5,804,241

*

Mr.

increased

Maryland,

profits—

Carbide

monds,

Mont-

County National Bank of

gomery

i4._

the

30. (Number of Shares outstanding

Ave.

April

(Number of
52,500, par

Effective March 30.
shares outstanding
$10.)

to

stock.

new

3,755,598

branch will be located in the

Charles

$350,000

$525,000, by the sale of

value

common

39.822,415

office

Union

from

stock

In¬

in

discounts

announced

son

capital

Bank

increased its

Pa.,

diana,

3,598,366
*

its title to First

Its

National

First

65,177,552
115,407,034

Stewartville,

of

Hackensack, N. J.

71,966,760

,

new

han. retired was elected April 11
A the Board of the Peoples Trust
Companj of Bergen County,
The

46,120,246
117,499,557

*

received

group

Co.

holdings

Stewartville

The

a

~

J^al°r General Francis TL Lana-

59,384,836

Hanover

branch

#

50,999,735

*

The

39,944,633

24,767,767

_—_

''security Vho"dings
&

22,619,562 *

^

^

$100,000

;

from

due

holdings

"iSS

113,257,365 131,303,800

&

Loans

Dec. 31, '59

153,348,271

resources

Deposits
Cash

15,223,507

36,841.201

Government

security

92,829,943

discounts

v--yx:

city trust

first national

company,

170,921,606

was

made Trust Officer and Joseph L.

Alexander

■ ■

§

159,634,475

—

Presidents and of Robert O. Parks,

formerly

trust

county

Mar. 31, '60 Dec. 31, *59

Vice-

Assistant

to

&

yy/y A-f- The

y;

*

A 177.830,318 188,314,759

resources

Cabank?d —Ue f_r°m
u.

73,312,193

—_—

Government

S.

York

been

corporation

The

Dakota,

$2,475,000
shares of
par value

$

Simultaneously, Mr. Moore made
wn 7 the'
election
of
Irvipg
Grcsswald and Irving Volen, Assist >nt Treasurers in the bank's
Branch Office Loan Administrakno

Division

*

fairfield

Total

260,044,776

Na¬

company, stamford, conn.

.

222,117,603

title

each.

$20

Chairman.

tion

the

of

Trust

been

have

York,

of

123,750

stock

common

tel¬

Assistant

Bankers

of

lers

_

into

divided

283.847,242

By a stock dividend, the Aberdeen
National Bank, Aberdeen, South

under

the

under

and

109,610,158

•

Frederic A. Ritchie and Harry F.

Schroeder,

Bank

HSiSSS First
National Bank of
with capital stock of

410,524,396

profits-

ap¬

the charter of First Portland

1,965.349,855 1,949,570,903

tjsasssi:
Undivd.

effected

was

°

se-

Dec. 31, '59

Undivided profits—

effective

became

merger

due

banks—

from

was

a

15, '60

from

due

banks

U.

New

April 8. Priced at $7.50 per share,
the common stock was offered by

245.085,293

Mar.

_____

and

Cash

as
0f the close of business March 31.

7,915,298,411 8,123.179,539
6,791,463,001 7,103,582,539

resources-

Deposits

of

of $2,250,000,

and

proved

S

S

Deposits

Rockland,

stock

mon

'

resources

security

Bank, Portland, Maine, with com¬

Dec. 31, '59

'60

Mar. 31,

Total

*

*

stock

this

& Co.

of

Bank

National

Loans

york

new

'

.

debentures

10,805,337

FIDELITY BANK AND TRUST
COMPANY, LOUISVILLE, KY.

proposal to acquire

*

421,982,833

12,023,033

CITIZENS
'

DENVER, Colo.—Approval of the

common

of 514%

*

Windsor, New York. Marine Mid¬
iancj Trust Co., is an affiliate of
the Marine Midland Trust Corp.

in

of

275,933,819

•

of

started his career

offering of 728,531 shares
stock and $5,000,000

Public

156,049,370 149,311,828

Government

S.

security holdings 222,659,253
Loans & discounts- 427,151,945

-

Bank

860,749,930 891,838,109

~

*

Windsor

■''

$

' 'i

Cash and due from
banks

named

was

He

1954.

San Diego Imp. yyy
Sees. Offered

Dec. 31, *59

951,962,302 982,109,770

resources

Deposits-

Southern New York, Elmira, an-

bank

city

national

first

of

of

Total

Undivided profits—.

The Marine Midland Trust Co.,

The merger

bank and trust a'
detroit, mich.

detroit

<g

$125,000 with
and into First Portland National

Total

Thursday, April 14, 1960

.

Mar. 31,'60

business on April 8.
*

*

company,

Banking Board, and be-

common

the

y.y

the

.

effective as of the close of

came

1929.

J.

*

change Savings Bank, under the
title of Mechanics Exchange Savings Bank, has been approved by

the

Appointment of Edwin D. Curry,
as an Assistant Secretary of Manufacturers Trust Company, New
York is announced by Horace C.

U.

*

*

nounced their

Board.

Undivd.

se¬

•y VA

The merger of the Mechanics and
Farmers Savings Bank, Albany,
New York with the Albany Ex-

the State

*

*

*

&

Loans

Vice-President in

and Executive
1957.

S

1,977,242,915
1,698 250,532 1,785,825,595
1,919 .966.949

resources

Deposits

U.

'59

Dec. 31,

31, '60
$

Total

etc. • Revised Capitalizations

New Branches • New Offices,

Consolidations •

as

.

Kirchner, Ormsbee
Merges With
Peters, Writer

Chairman
in
1907 with the Commercial Bank
of Scotland and later worked in
London for the Chartered Bank
of India, Australia, and China. He
was
appointed assistant general
manager of the bank In 1935 after
serving as general inspector. In
1945, he became the general man¬
ager. He was elected a Director in
1947 and a Vice-President in 1948.
and

1949

*

*

*

the

Trust

.

President of /the bank in

became

outstanding

shares

40,000, par value $25.)

NEWS ABOUT

The

.

(1634)

18

metropolitan

the

area,

New

the

marketing areas

New York,
Connecticut, Rhode Island,

up-state

York

coffee is

Maine,
Massa-

Number 5942

191

Volume

Pennsylvania, Maryland,
Ohio, Michigan and in

vmsetts,

vSnia,

.

.

The Commercial

and, Financial Chronicle

IBA

Training
Program Is

Kington,

D. C and Toronto
Windsor, Canada. .

flnd

.

months ended Jan.
In Session
qi
1960, net sales of both divisions
were $14,591,194 and net income
1Z $944,837, compared with net WASHINGTON, D. C.—The tenth
Z]L of $13,224,513 and net income annual executive development
program sponsored by the Invest¬
f ?710 595 for the like period of
?qrr Total sales for the year ment Bankers Association of
net income was $1,-

and

172

349

equaled $26,-

July 31, 1959

ended

equivalent to $1:96 per

566,219,
share.

academic

Committee

School

of

In

merce.

and

1953

the

Investment

Banking

ized

the

under

provide

.

Com¬

of

auspices

to

..

and

present

week each

one

spring for three

and upon completion of the
program receive a Certificate of

years,

three-year Merit.'

a

government

circles

It is expected that 70 regis¬
will receive certificates at

trants

,

dent of the Association.

are

personnel of IBA

mem¬

ber

The

training

augurated in

program

1951

as

a

was

in¬

one-year

The

Institute

Pacific NW Group
Of IBA to Meet
PORTLAND, Oreg. — The Pacific
Northwest Group of the Invest¬
ment

Bankers-

hold its

annual

Whit

Inc.,

is

Pearson

to

;

P.

FRANCISCO, Calif. — John
and Sidney T. Bailey

have

become

FNMA

responsibility. Speakers

related

Russ

Building. He

and discussion leaders drawn from

mittee.

with

Walston

of greater

Institute

Planning

Com¬

.

-

president

Stanley Baughman
investors
will be able to purchase such paper

J.

maturity dates tailored
individual needs within
certain maturity ranges at pub¬
lished rates. The notes will be sold
on a
discount basis with the in¬
vestor receiving the face amount
at maturity at the Federal Reserve
Bank of New York.,They will be

with exact

their

to

denominations

in

issued

of

$5,-

$10,000,
$25 j)00,
$100,000,
$500,000 and $1,000,000. Sales will
be made only in multiples of $5,000. These notes are obligations
of the FNMA and are not.guaran¬
teed by the U. S. Government.
000,

,

is anticipated

It

this

of

financing

that

will

the bulk
consist of
,

notes with maturities in the 30-90

day
to

area.

■ili

No notes will be issued

mature

during the following
periods: March 10-23, June 10-23,v
September

10-23

10-23. At the

notes

gram

the

and

December

inception of the
will

be

pro¬

available

in

following
four
maturity
days, 60-89 days, 90days and 180-270 days.

ranges: 30-59

179

On

or

sociation

about

will

April 18, the As¬
the

announce

dis¬

count rates which will
apply to
these maturity ranges at the be¬

ginning of the
FNMA

the
right to
maturity ranges

reserves

change rates
without

;•$&££

V

program.

and

prior

notice.

nouncement of
will be made

such

by

Public

rate

an¬

changes

of

means

a

news

remuSe
*ssued by the Association.
The

notes will be marketed and

distributed

on

an

exclusive

cerning

all

purchase
should be directed.

inquiries
of

the

than meets the eye!

con¬

notes

It

Named Directors

v

Inc

*

523,451

search labs to

Coughenour, Jr., Peters,
Writer &
Christensen, Inc., Dener, and

takes

more

:

IrvinS Jstaff of°?
been added t0 the
Shaker ?,aitl?er & Co.; Inc., 11900
the mL Boulevard, members of
■
M,dwest Stock Exchange.




produce the steel

we use.

America produces
The

.

Cities Service

us

pulling into

uses a

globe, and operates
.v

Tons of iron

our

.

.

Cities Service station

ore

turned into mol¬

pig iron and from this...,
steel. From constant research and

•

pipeline system that could circle the
a

fleet of ocean-going tankers. We

search four continents for oil and maintain modern research laboratories and refineries.

,

ten

development have come steels that
will

-

ex¬

realize that all that lies behind today's quality gasolenes.

With V. K. Osborne

Ohi0

far-reaching

think of all that goes
manufacturing this "everyday"* metal.
;

into

(Special to The Financial
Chronicle)

NaSLA?D'

<..

industry alone used 9,587,980 net tons of

And few of

Gaither Co. Adds
PT JfrPeCml t0 the financ"l Chronicle)

women

steel last year. Yet few of us ever

ors of Northern Properties,

TegeIerTco.y W"h Dempsey"

and

than 85 million net tons of steel each year.

automobile

Joseph a. Patrick, a New
ney, have been elected

BEVERLY HILLS,
Calif.-Mary
V TrAy, ls now connected with
SanTo ™b°-rne & Sons- Inc-' 9650
Wa«
f
ca Blvd. Miss Scully

men

ploration teams, transportation systems; testing and re- -

John F.

Auv.

to Cities Service

more

basis

by A. G. Becker &
Co., Inc. with
principal offices located in Chi¬
cago, New York and San Fran¬
cisco, to whom

help

man conquer space.

.

with

Paine, Webber, Jackson & Curtis,

about April 18 it will
limited amount of short
term
discount notes similar to
commercial paper to meet a por¬
tion of its Secondary Market Op¬
erations financing requirements.
to

associated"

IBA Education Committee and the

being prepared for positions

a

According

Co.,

Convention

Baxter

or

on

issue

Blyth, &

the

(Special to The Financial Chronicle)

SAN

Association announced this week
that

of

be

With Paine, Webber

Mortgage

National

Federal

will

Chairman.

handle the transaction.
The

Association

meeting Sept. 9th

and 10th at the Sheraton Portland.

is

Federal

Latest

Association financing

19

Registrants attend the Institute
for

organ¬

was

banking field and

business,

signifi¬
cant topics of current interest.

comprehensive

through

sequence.

Whar¬

and

Institute

same

more

a

program

the

Finance

from

organizations are attending,
according to James J. Lee, W. E.
Hutton & Co., New York, Presi¬

is

being held this week
(April 10-15) on the campus of
the
University of Pennsylvania,
Philadelphia. More than 260 jun¬
seasoned

National Mortgage
will offer 3090 day discount notes similar to
commercial paper. A. G. Becker will

the investment

cation

designed
to the graduation exercises on Fri¬
familiarize registrants with cur¬ day, April 15, the concluding day.
rent developments and problems
Applications for the 1960 Insti¬
affecting the investment business tute again substantially exceeded
and
to
facilities
at
the
develop leadership
and the ' available
foster efficiency in all phases of Wharton
School,
according
to
investment banking operation.
It Robert O. Shepard, President,
offers
an
invaluable
experience
PreScott, Shepard and Co., Inc.,
for officers and partners of mem¬
ber organizations and others who Cleveland, Chairman of both the

America

ior partners and officers and other

FNMA to Offer
New Type of
Short-Term Paper

Investment
Banking
Seminar,
jointly sponsored by the IBA Edu¬
ton

the six

For

(1635)

And those gallons

dollars

of

of gasolene represent

investment

in product

im¬

provement and development of facili¬
of tomorrow requires

ties. The challenge
even

greater investment.

Only in this way can America have
what it needs for progress-more

and

more

and better oil products.

jobs
•

over a

billion

-

&

was

Co.,

formerly

Inc.

The Commercial and Financial

(1636)

20

growth

The Economic Challenge

that

■

Of the Soviet Union

its

to

further advances

tity

citizens.

of

Soviet economic chal¬

sole

better

He offers a policy to achieve a high
not require making it the

of

In rebutting those who advo¬
central direction and austerity in order to channel a greater

responsibility of the government.

cate

non-necessity and dangers of emulating the Russians.

to the

'

the Russian

More¬

solely an economic one
ideological and spiritual.

the enterprise system is able to
a
regimented econ-

that

omy.

are;

It is true that we have had pe-

good

in

itself, apart from any consider-

a

us

lift the

to

the
tne

lifp
lite,

bince

also

living level of

the

Soviet

average
average

Union

oerson
peisun

in
m

available

has

us

icfea

only about one-fourth of the goods

enjoyed by the aver-

that

.to Question tne idea

a

tnat

a

counts

prS™tc/v °_f ,,!! Economic challe£e oF the Sovfet UnYon has

'lafhed
,

nroportions

such

.

it

that

This

into account

taken

musl De,iaKen mio account.

xm»

from such statistical com-

appears

bisons

as

have

we

if

Even

we

the
statistical
economic
ad-

totally
discount
compariSOns,
the

the risk of compounding the age American citizen, the drive vance of the Soviet Union is eviarea of gen- errors in both.
for mprovement is probably dent in judgments made by
eral economic policy.
Once economic output has been greater there than here.
visitors to the land, who compare
We are in the first year of a estimated, the calculation of
The rate of economic growth is preSent conditions with the reI Lde
trends in the growth rates inevi- also
important in that it is a Umbered
circumstances
of
new
decade.
tably follows. Once trends have measure, though not by any means former years.
It
is
appro¬
been computed, the urge to pro- the sole measure, of the growth
Those who characterize the ecopriate that we
think
about
ject them into the future is irre- of military potential. The greater n0mic
challenge of the
Soviet
sistible.
The projection of trends the
total output of goods and Union as a serious threat may be
the kind of
is one of the most fascinating and services, the greater can be the classified in two broad groups.
economic
hazardous occupations known to military effort. Our military efproblems
£ #
man.
The first year of my life I fort amounts to about 10% of a Reactions to the Soviet Challenge
which we will
confront dur¬
gained 20 pounds. If I had gained large Gross National Product; the
First, there are those whose
the

very

anT very complex

broad

run

.

^

ing

dec¬

this

yond.
will

What
be

domi¬

the

nant economic

problems dur¬
ing the years

ings have been held during this
year by the Joint Economic
Committee of the Congress, and

Don Paarlberg

past

ahead. A

numaucau.nnuxu-

ber

of

subjects have been nomi-

nated for this role*

One
to

such

1

subject

is

effort

an

achieve

the

Another is the

curbing of

centrated economic power

harmonizing of

jectives with
Still

the

pnnth^r

somethnes

ob-

«i«binning

which

a

interest,
thp

adiiisS

harsh

ecoifomic lS?

group

public

i*

con-

and

fknv

in

from

the onrush of technoloev

om~5n1° recimoiogy.
wSh

a

L

proximating the diligence and
sourcefulness that

was

re-

employed

JLSs pfS
earlier, depression three

decad

v

Yet

fort

another problem is an efaid
the underdeveloped

to

countries,

m

a

manner

similar to

Jf1®.
Jfcccbffy - accomplished
building of war-torn
are

lems which might be appended to
this list.
But there is one which

response

foregoing; that

to

the

is our

chal-

economic

lenge of the Soviet Union.

°ss^da tohthed United6
Chairman Khrushchev

Every-

reach
Gross
United
goods

would

the

make

testimony
perhaps

a

of

—

.

that

he

been

meant

said

in

to

having a high economic output,
in having a
high rate of

and

economic growth. One-third of the

this conclusion: that the
National Product of the
States, the sum total of all
and services produced, is

world presently enjoys free government. One-third is regimented,

so

During the last decade

the best

that

computations

The

remaining

or

economy has! been adat a rate somewhat in
of 3% annually.
The con-

our

excess

census

of informed

that the

estimates is

Soviet Union has been

growing at something like twice
that percentage. In
absolute
amounts,
say
those
who
have
increment

of

their

lift

in

growth

to

nomic

output

by

services;

the

weighted

is

consumer

Soviet

goods

Last year the rate

growth

in

this

economy

in

the

in

real

recession.

were

a

In 1960 the American

advance

comparisons, not milltary capabilities, though the two

by

additional

large
amount. While we are very happy
to have them, these favorable figures are related to a particular
phase of the business cycle and
an

^

if in order to overcome them
become like them, then our
the issue

economic

11

'

-f

^

But lt wouid Be

an

even

who would

™an

*
m

accept the

Soviet objectives and emulate the
Soviet technique of regimentation,
ln an effort t° b,fat thein at th«r
™n, game' Such a" ef£ort is not
l ,y ?
an lf£t were, the
frults Gf
.

victory would have been

forp0rmp

hefnrp.

fh*

*°reg°ne beiore the battle began,
far.more ,^stake. than mere'y

larg^^sMisti^^e^urhicrP+vft

the

annual

rate

groW?h

of

an^eare vafiomw,
.

t

iarffe?

register th

| inrref<3*>
^

in

g

.ft.,

v,

th.

rntf £f J

If

W°rk

nons crt , women

,

labor force,

?r

°ur clerks and

Vf" esses ro otner duties, squeeze
d?wn the-level of consumption,

System
a

a

of

its

if

one

rapid rate of
To

countrv

a

United

be

may

underde-

an

high

States,

eco-

is

level
we

of

vestment.
J-nis is what the Soyiet. u.^ian daes- i3ut " we\ were
for the promotion of programs t0 ihutate them, we would lose
they have long held dear. Chief our character as a tree and mueamong these are the proponents of pendent people,
pet spending schemes. Their prothe rapid growth rate achieved
grams have, during the past 30 by the boviet
system with its
years, been successively ration-, regimented
system
is
accomalized on the basis of overcoming P jshed by the suppression of inthe depression, winning the war, dividual rights, a technique made
and expanding social services, easier by the^ tact
theur peo-^
Now they are rationalized on the pl^iwi^ewr
b°Z 5™!?
basis
of
promoting
economic
L
rL™ +1
growth so as to match the Soviet * 0
'autocracy unde:rthe Gzars to
performance. These pet schemes regimentation under-the Commisare hooked onto whatever is the s
•
< ;
prevailing public concern. They
Our poeple have a heritage of
should be discussed on the basis freedom. Individual ^ghts in this
of their merits or demerits, not on country will not easily be relinthe basis of some alleged associa- quished. The point of the matter
tion with whatever is currently is that any attempt at central
regarded as a problem. I shall direction of this country's econ?.ot here deal with the over-ra- omy will encounter political, ecotionalized proposals of these peo- nomic, and sociological obstacles
ters, but who

Soviet

as

simply

not

^

ar

into

unattainable.

economic

How Is

Growth

rationale

M

,

Second, there are those who
endeavor, from honest motivation,

to ^eal constructively with this
Problem- These people and their
Pr?Pbsals merit our consideration;
xt 1S here that I intend to focus

my

^

+

i*1'er^y,tbe tendency

as

A high
growth, howbeginning from where they
is more readil
translatable
meaningfui terms.
&
of

the rise of the

have

as
one
might think;
high level is often viewed

a

use

economy as a new

Jf n,WI1o

impressive
such

is

of economic

country,

Many

embrace

Iconomic outeut' suchfs

and

economy is generally expected to

economic

some

this issue,

living.

to

growth.

veloned

ever

Our own

writ-

comparing the Soviet economy
with our own. I am
talking about

is to

on

themselves,

attributes is

Soviet Union, though greatly difeconomic

of

inclined

regimented

rate

heavily

level

advance

more

this country is roughly comparable m volume with that of the

it.

ten

third

extent uncommitted

show underdeveloped countries, anxious

vancing

we

and

us.

at least twice that of These uncommitted people, inthe Soviet Union> but that our eluding those in parts of Asia,.
rate of economic growth, in per- Africa, and Latin America, prescentage terms, is much less than ently underdeveloped, aspire to

his fre-

ca.h be

_

doubt

Much has

that

of

the

lift the
military
is of con-

would
country's

presently

lu

little

level

in

advance

economy

would

he

UnftedanStat^enin The"^^^ [haTusual bF^ue^fh'3^
goods and services. "We will bury that
from a
uu^
f were emerging
emerging irom
you," he said, and there
.....

sustained

and

Soviet

SCtat^enby vestment^nd mUitoyOutlay.Far.

quently stated goal of first equal-

of

capable

Finally, there is an element of
prestige arid" leadership involved

^ a brAau sfnse mcludes within ferent m composition.
it all of the

well

is

economy

supporting such military effort as
needs prescribe. A marked

our

cern

yearly

other economic prob-

ent

the capability and hence

re- studied this problem closely, the

Europe.

There

military effort
is a much larger percentage of a
much smaller product. Our pres-

Well-qualified people differ in
their estimates of Soviet capabilone

reason for* our rivalry i<?
don't want to be like t.w

dispense with certain of our frills,
aad forcibly extract savings from
of the Soviet Union primary interest is in other mat- me Pe°Ple to spend on capital m-

country have given testimony.

theirs.

fn11

in

people

expert

most

living levels and a broader shar- ities.
But if
ing of the fruits of technological composite of
change.
/..^'hble persons,

better

would now

weigh half a ton.
Despite all the difficulties of
making comparisons of the two
economies, comparisons of some
sort must be made. Lengthy hear-

be¬

and

ade

that much each year, I

we

we

*ooUsb

Soviet

Union

Soviet

The

and services
I want to explore

The

riods of time, as during World Cause is lost as soon as
War II when we temporarily and is joined.
partially regimented the A
The
rapid rate
of

growth

desirable thing

for

people, and has recently emphasized this aspect of economic

contest between
and forget that the rivalry is also

is

us

a

of economic

its

ribly wrong if we accepted the Soviet view that the

outproduce

can economy, ;growth in the Soviet Union is a
changed and increased the output matter of concern, and it is a foolhigh, sus- of basic items.
But our whole lsh man indeed who would shrug

is

wishes

In his final point, he avers it would be ter¬

challenge.

people. Thus,

our

Union.

he warns against the dual tendency to play down and over-play

over,

Rebukes Those Who Would
^
Emulate the USSR

:

and

health,

ation of what goes on in the

capital investment, Mr. Paarlberg refers

share of our resources into

Thursday, April 14, 1960

.

housing for larger numbers

tainable rate

growth which would

economic

these
will
be
Advances in living

improved

cation,
lenge and our responses to it.

goods and
if the

of

levels have to do with better edu-

Staff executive to the President analyzes the

rate

quan-

grows

forthcoming.

Washington, D. C.

the

in

available to them;

economy

the President,

By Hon. Don Paarlberg,* Special Assistant to

Ouf people aspire

quality

and

.

achieves enjoyed by any people. It is a
well-being deep-rooted American belief that-

the

of

services

.

a1 country

improvement-in

-

Chronicle

economic

•

unknown to the Soviet Union. We
cannot succeed with their

made:

By central direction of its
the United States vastly
increased its output during World
War jj
Now, it is said we are
_

faced

'

.

a'similar

with

challenge.

We should, it is maintained, prune
away, by government action, some

of the frivolities of our free economy' adopt a program of austervietchallenceonwhSftPml ity' and by some form of central
it is S S T?fh?^P+ Tdirection channel a greater share
generatedT
rS of Sro of our resources to capital innomYc
we
are
to?d that vestment,
nomic Sowth
Let us
examine this argument
Sjowtn, we are told that
ug

2??® Counsef n? U?xrZlt ihl

CAaxiilIie

carefully;

Tus'tainabfe^economic3 growth""

_

economy,

^1aen^on01fp tw nlliw

Used?

tbese ob.vio,us masons, we

system.

This kind of argument is being

objectives, industry-by-industry,

there

is

a

persuasive

sound to it.

rsimUa'^approach6 I?"
hey "issue
Answers Advocates
" they
they
issue
Direction of Central
challenge

in

th" incremenl""{""eco'n omTc f"eld?6?^^!^'that'we'shou"d

,Th.e ,Unite? States temporary

^rowth
for advances in wonlH
the wellautomatically
accept it and try to ad°Pted central direction
beinff of it<; npnnte
-of
outdo them' "Whatevor
"ran economy during the two Great
co7£ hfhS kit if u if do I can do better "This
hp
Wars, firm in the belief-that freewp

them te

von

tLeate^ nfmib*faHlv

S subter^

mav

nr

nations then the
spHmi^ Anp w/Ld

a

m^tter is a ^serious

good
This

uncommitted

^ttS^s

a

one indeed.:

song

but it's

form

of

steateJ^

noor

strategv

h*ve

would

Soviet

the leaders of the
Union selecting the area of

^njeiecxmg the a^

com

com-

doms
temporarily
surrendered
w()uld be taken up again at the
close of the War- The first War
lasted two and a half years; the
sec0nd

one

lasted four

of

ecnnomip

a

half. The

The significance of economic Petition, choosing the issues they desire for freedom was kept alive
are to a degree related.
are
not to be interpreted as the advances in the Soviet Union de- wish to
raise, and naming the field during these relatively short petha
nifffotiu
r>
long-run prospect. Throughout Pends upon Soviet objectives. The in which we are to contend. In- riods; when the wars were over
The
Difficulty of Comparisons
this paper I will be speaking of counsel of history is that we conevitabl
th
w
M choose
'l we again took up our freedom,
Any economic
comparison
is long-term
growth
rates.
The Slder the Soviet Government as
cnoose sucn
slightly impaired by its temmade
difficult by the inherent problem of dealing with the busi- not being
exclusively concerned ob3ectlves and name such areas
porary and partial eclipse,
awkwardness of
measurement, by ness cycle is related to but dif- "with the living level of its citi^
competition
as
were advantagewhaf
ic
nmhahlp
duration
the
c

s

.

uncertainties which surround

Soviet
of

statistics, and by the lack
comparability between the two

economics.

To

chart

such

economic growth.

accurately

tbfaize.?.ft.our.ow" product
tfon

ferent from the problem of
promoting long-term sustainable

is it- rates in this

ra]

To^corrfn ute so^ofZm'bers
eCc°Zmy
b "g

ni n g''
the output of the Soviet

two

the

fragmentary

approximate

and

ques-

quantities
—»-"




ous

What has been and what should
be our reaction to the economic

natural competitive advantage

challenge laid down by
Umon?

a ®F
would be llke PlayinS

the Soviet

country and in the
Are differential
For a long time there was
a matter of real thought to be a challenge.

WnwaFi statistical opera- Soviet Union?
?nlik^ tlfinoe a togethe.c rates of growth

and col leget

from

What is the meaning of
growth

zens.

S j"St SOme

6?-

-

The Importance of Growth

14,is aot uprising that

not

to

as

had for them

a

To

the

the^

United

rivalrv

States

and

game

ln

between

the

ve advantage. To trie United States and tri
a challenge
this form Union.
™ay b® 'a
u

„

always

this

them,

Soviet

„

whlch

names

cards in

your

a

opponent

trump.

H we allow the Soviet

San

in

Union to

-

wiil

No

we

man

rather

can

say

would
be brief,

be- no man

pmdictthatitwOi
Could

easured

o? generatfons

years

how long it

!«ha^ be!n tbe Am.erkan name the area to which our two
th
Unfted ^StetpSm6nations are to compete, we would

-—sussasuvat/ss zsssr

^ decades

put

freedom

aside

for decades, and then reinstate

it.

aarasaawaai

Number 5942

Volume 191

.

.

The Commercial and Financial Chronicle

.

(1637)
1

that

Smild

would return to it?

we

remember the rewards
freedom? Would the desire for

t

we

enough

strong

be

freedom

to

provide

better

roads,

social services.
The
Federal

help

provide-

better

and

economic

system,

but

do this within the

Government

•

climate

a

pattern of regimentation, which enterprise and
Bi down and congealed over a growth can flourish. It

can

within

economic

hatter a

round

can

not

to

the

detriment

institutions.
without
of

his

out and

we

should

framework, and

We

of

should

do

it

depriving the individual

rights

or

of

his

A. G. Becker & Co.

Net sales, for the year ended^
Dec. 31,1959 were $127,694,000 and

Offers UCS Com.

net profits

free

our

An

responsi¬

$9,061,000, equal
outstanding common
share after adjustment for a 3%

to $5.24

underwriting group headed

supplement the efforts of bility.
This is not to be accom¬ by A. G. Becker & Co., Inc. on
decades? Would looking
state and local governments in the
central government become so
plished simply by appropriating April 11 made a public offering of
development of human and nat¬
more
habituated that local government ural
money, launching more bu¬ 150,000 shares of common capital
Ind indeed the capacity for local the resources, being careful in reaucratic
stock
of
the
Universal-Cyclops
schemes, or trying to
process not to pre-empt, sub¬
Steel Corp. at $42.75 a share. Net
governing, would wither and die? stitute
for, or discourage local and match the Soviet Union in com¬
To put these questions to the test
proceeds from the sale will be
state efforts. It can pursue sound
petitive areas of its choice.
Nor added to the company's current
would Place in jeopardy our most fiscal and
monetary policies.
It will it be
funds
for use as needed for plant
nrecious heritage. It would dem¬
done by taking on the
can
develop realistic price and
expansion and improvements.
onstrate that we hold in low es¬
productionrcontrol policies in image of the evil we would like
neriod of

21

stock

P

were

per

dividend.

Giving effect to this sale,
italization

of

subsidiaries

the

will

company

consist

of

cap¬

and
$22,-

500,000 4%% notes issued under
term loan
common

a

and

1,897,430 shares of
capital stock.

Chicago Inv. Women

The corporation, whose princi¬
capabilities and v= the agriculture rather than
It will be done by
To Hear E. P. Rubin
perpetuate to overcome.
pal office is at Bridgeville, Pa., is
merits of our free system.
nonsensical and costly distortions.
cultivating the creative energy of a producer of specialty
We need to be reminded that
steels, CHICAGO, 111. —On Wednesday,
The Federal Government can¬
people, which our system is principally tool and stainless, and April
economic freedom, extended to all not,
20, at 6 p.m. The Investment
singlehanded, take responsi¬
of refractory and reactive metals.
the people,
is a relatively new bility for
Women of Chicago will hold their
producing a specified uniquely capable of doing.
Most
of
these
products
are
of
concept in the world's history. rate of economic
spe¬
In the last analysis, the
growth.
rivalry cial analysis and are
annual "Bosses' Night" program at
produced on
It has emerged only in recent cen¬
Great though our performance the
between the Soviet system and a "custom" rather
than a tonnage the Chicago Bar Association; Fol¬
turies, only in parts of the world, is, we should not be satisfied
with
our own is not
and only at immense cost. It is it. How can we
merely economic, basis. Through its subsidiary, Em¬ lowing the dinner the guest
improve the per¬
it is also ideological and
not the kind of system which can formance of the
spiritual. pire-Reeves Steel Corp., acquired speaker will be Edward P.
American eco¬
Rubin,
be put
in escrow. It must be nomic system? There is no mys¬ If we remember
that, we can win. in 1958, Universal-Cyclops has also President, Selected American
practiced if it is to be kept alive. tery about it.
The key is the
become a substantial

the

teem

which has rewarded preservation
of
the
initiative,
brightest dreams, vitality, energy and resourceful¬
deserves
better than
that we ness of our people. We can im¬
should voluntarily
impair it prove our economic system
through fear
of a still-distant through the development of our
This system,

byond

us

our

competitor.
•
The
President

human

utmost

tion,

has expressed
confidence in the ultimate

representative govern¬

victory of
ment and

enterprise economy.
The Vice-President has said we
can win this horse-race with
the
Soviet Union
provided — and I
an

emphasize this — provided
don't try to ride their horse.

we

Keeping Aware of Our

should recognize and

we

economic capabilities
the Soviet Union, we should

respect the
of

underestimate

not

and

bilities
These

Union.'

the

>

of

situation

is

somewhat

follows: Early in the game* we
are ahead four-to-two. In the next
as

inning, each team adds
us

this additional

addition

to

opponents it
Some

late

was

clever

that

25%
our

the

increase.

might calcu¬

visitors

their

kept in¬
50%

by

score

inning, while

every

was

50%

a

fellow

if

creasing

a

scorefor

run

our

For

run.

a

increased

we

ucts.

look."

Changing

Investment

Out¬

resources,

more

of

use

the

incentive

system, less
of
special
interests,
responsible fiscal and mone¬

indulgence
and

tary policies.
performance

Enhanced economic

comes
from
these
solid sources, not from politicallymotivated spending in behalf of

and

certainly

not

from

most certainly —
adoption of tech¬
niques alien to our system.

;

—

the

Challenge Is Not Solely

an

Economic One
This final and major point:
be terribly wrong
if

would

baseball

a

"The

research, inducement
saving and investment, better

for

the
'

*'■

Shares, Inc. whose subject will be:

carbon steel and galvanized prod¬

through better and broader educa¬

presently

Put into the terms of
game,

capa¬

strength'.

those

twice

than

Soviet

own

owfl'1

immense,

are

more

our

our1

material

address by Mr. Paarlberg at the
Agricultural Clinic for Agricultural
Purdue University, Lafayette,

Backers,
Indiana.

ever-greater centralization of gov¬
ernmental power
and authority,

Capabilities and Strength
While

and

producer of

*An

16th

ours
by only 25%, then in time
they would be ahead. No sensible

t

».

we

accepted the Soviet view that the
contest

between

economics

is

us

solely

an

one.

Theirs is

;;

philosophy of dialec¬
They count ma¬

a

tical materialism.
terial

goods to be of overwhelm¬
ing importance. In fact, history is
explained in terms of one disci¬
pline only, economics.
Human
rights are considered wholly sub¬

ordinate, God is said not to exist,
and human life itself is considered

luxury indulged

a

by the

State.

Our country, on the other hand,
was founded on belief in the sov¬

manager would basically
change;
his strategy on the basis of such ereignty
a

computation. Least of all would
he adopt the
strategy of the op¬

posing team.
best
as

He would follow the

strategy he could, and make
many

runs

as
possible.
underestimate

He

of God and the dignity
rights of man. The marvelous

and

economic productivity of our sys¬
tem is

essentially

a

these strong beliefs.

forget

now

the

by-product of
If we should

central

theme

country, and be persuaded to
defend its byproduct rather than

threat of his

op¬

its

ponent, but neither would he

un¬

and tragically wrong. It is time to
re-examine fundamentals.

strength

not
or

the

derestimate his
To

promote

solid

growth

sibility,

jests
local
well

a

own

strength.
right kind

the

is

a

shared

responsibility

upon

and

private
state

of

respon¬

which

and

persons

governments

as

the Federal
Government.
Federal Government cannot

as

1 he

^ f^rce

:

substance,

What

we

could be terribly

the

attributes
What are
the things to Which the American
people truly aspire? Despite our
are

major

of the American system:

occasional

preoccupation
with
other matters, it seems clear to me
that respect for the individual, for

his fulfillment, for his capabili¬
basically ties, his rights and aspirations, for
leantpe?ple .want it- And if we his freedom and responsibility, for
it, which we
should, there his efforts to achieve an under¬

8 owth

a high rate of economic

upon

us

competiLn
oben

community

o!

can en-

^-iques'

by

pncinS and by

ofrf6
^th resPect
new,

entry
1Lr.v ot

firms.

more
a more

to the
;

•,

the

distinguishing features of the

American

In

;

^owth1 hvan
economic
fences of fCtPt\ng-the conseand bvLo
technological change
ties as wpifP lJfr1 ue resP°nsibilU
and
power 3S
benefits of size

Industry
ress

on

the move! That's the

prog¬

picture in the booming Industrial

ucational

help
opportunities,
can




excel

the

design

delivery

Company's system is

capacity
now

cubic feet per

day—an increase of about

38

over

growing number of factories and

homes is

Gas

provided by Southern

Natural

Company,. That's why. the largest

expansion

program

in the Company's

history has just been completed

pansion costing
more

over

fuel

to

—

$100,000,000
more

and

Southern Natural Gas customers.

ex¬

to

—

more

per

cent

a

two

industrial

consumers was

83 billion feet

—

a

new

approximately

distributing companies and municipal¬
ities for resale

were

also the

Company's history last

largest in thr

year.

-

States, but in

natural gas is accelerating the rapid development of The Industrial

world.

in

it

take it for

to

countries

many

is

tionary concept

the face of the

on

-

Freedom, indeed, is
ought

havfe

a
we

We

on

how

Southeast,

write for your copy of our 1959 Annual Report. Please address Department

FC.

taken

Freedom in still the most revolu¬

we

Company's

granted.
But
of the world

for granted; it is
greatly desired and much sought.
not

sold to

gas

high. Sales to

meaningful not only in the United

come

period.

year

During 1959, the volume of

Southern Natural's great expansion offers tangible evidence of the

country in the
We have so long enjoyed
this great blessing that we have

the

the

faith in the future of this fast-growing territory. For further information

any

of

1,365 million

challenged. On this we
should
challenge them.
Freedom
is

that

eq'uah^o tS?,Ve^ments

to

as

we

by
so
wide
a
be completely un¬

The

Southeast. An important force that fuels

deliver

.

matters

Union

earth.

ecpnomir?°Lernn3^nts carl Promote
adequate J»rowJ. ,by providing
nify services!103
and commu-

system.

these

margin

con!miLc growth by adopt-

n

standing with his God, these are

"Soviet

How We Can
Achieve Growth

ing

THE INDUSTRIAL SOUTHEAST GROWING

unless

hp«ialany ways to bring it about
sihimS m?kin§ it the sole responmerlt
the Federal Govern-

hannf business

THIS INVISIBLE FORCE KEEPS

of

our

the

would

to

'strong hand
can

name

should

our

trump;

that
and bid

recognize

we
so

constantly to

improve the performance

..

of our

i.

'atural Gas
COjM PA N Y
i

Serving the Growiua South
WATTS BUILDING

trump.

strive

I

We

•

BIRMINGHAM, ALA.

'

*

i-

22

The Commercial and Financial Chronicle

(1638)

fiscal

current

Our Reporter on

June

ends

Offerings

the Treasury
is fully con¬
vinced after this recent offering of

with

bond

long-term

a

Thursday, April 14, 1960

SECURITIES

that

CHIPPENDALE, JR.

.

Come

to

It is believed in financial circles

GOVERNMENTS

.

PUBLIC UTILITY

30.

Shorter

BY JOHN T.

which

year

.

BY

OWEN

ELY

4*4%

a

ceiling rate that investors are not

going

the

buy

to

government's

Idaho Power

most distant maturities in size un¬

these

less
would be well under the half-

The

sue

bond

billion

subscriptions to the 4*4%
due May 15, 1985/75 was a
disappointment to say the least.
However, even though the takings
of the new money raising bond
was
well under the $500,000,000
minimum
more

This

set

a

by the Treasury

lars.

decided at

that the

to

tions

with
five

a

is

years

is needed

going

not

unless

easier.

turn

uncertain

and

markets

Competition

money

as ours,

always

will be done away

to

flotations

investors

of

tractive

opin¬

than

ion of certain money market spe¬

obtained

cialists

was

will

move

rates

lower at this time.

the

long

the

main,

rates

organizations

are

unless

business

probably

will go for a

as

low

as

they

that

4y4s.

which

Pension

certain

and

vestment

while.

The

Offering

"Flop"

a

well

as

concerns,

capital market for part ofjts new
and found the competition

The reception
to

the 4%

in

line

due

been

15,

1985/75, was sub¬
only in the amount of

$370,000,000,
limit

mum

as

of

against

$1,500,000,000.tit

had been expected at first by not
a

few

that
at

money

the

least

market

Treasury would pick
$500,000,000,

but

as

The

very

and

The

be

of

of

had

in

the

financial

to

the

$6.7

25

w

h i

billion.

Louis

Loan

h

Calif,

The

to

of

should

a

of

bit

new

carry

1985/75,
more

And

through

Presi¬

Transan¬

Savings

Association

of

by the Division

and

Lynwood,
of

Savings

and Loan of the State of Califor¬
nia

the

to operate

branch office

a

Angeles.

subsidiary

a

than $2.5 bil¬

money.

them

gave

—

of

permission has been
World

Idaho and

nancial Co.

this

located

the

in

of

on

to

Some

89%

tained

in

of

revenues

Idaho

in the other two states.

cities served

Principal

which

obtains

come

in the state

these

provide such a steady
output (water being derived from

melting
that

The

necessary.
12

some

or

scheduled.

in

Congress

struction

of

Federal

smaller

con¬

a

dustrial

nearly
1
million
kw
capacity.
Brownlee with 450,000 kw is com¬

Share

pleted,

the

fourth

unit

begin in the fall of 1961,
completion
in
about
three

two-year

a

costs

average

obtained.

which is
for

a

tion

extension

well

facilities

three

nicking, fishing and water-skiing.
Oyer $11 million is being spent to

high

Other subsidiaries

Fi¬

voltage

structed
are

Denver, Colorado and

grid

by

the

the

big

new

as

it

present,

will

be sold
&

to remain

Power

and

better.

Dividends

will

be

at wholesale

Light

this

retail

it

may

to

$1.70

and

power

can

add
to

the

in 1962 and 15%

to

be

an

Earnings

power

but

sold

The

at

earnings
higher .rates then

a

in

milEon
in

such tasks in

well-equipped Vocational Schools

throughout the Commonwealth.

fast-rising earning

power,

con¬

tributes greatly to the
strength, stability and

diversification of Puerto Rico's
economy, and
to

the

soundness

of

the

investment

tunities offered in the bonds of Puerto

oppor¬

Rico, its

municipalities and its various Authorities—all

The value of these
special schools is

clear in

wide-spread prosperity

in Puerto Rico. Such educational
progress

already

increased

fully exempt from

state and

The

The

P. 0. Box 4591
San Juan, Puerto Rico




BANK

FOR

now

and

may be

McDonald-Moore Appoints
-"Korff in Grand

expanded proc¬

packages,- compared

Fiscal Agent for the Commonwealth of
Puerto Rico

income

New York 5, N. Y.

Korff as

J.

The

office

been

has

managership of Pendle¬

ton S. Morris since 1935. Mr.
will
and
of

service

financial

Korff

institutions

investors in the western

Michigan.

associ¬

J.

Wade,

or

Inc., Grand Rapids.

was

part

His previous

ation

man¬

now

ex¬

income
from

cffice.

as

less than 5% a decade
ago; it is
predicted that 70% or 80%
may
be processed 10
years from now.
Idaho state's income from

Jack

with

Walter

with

($210 million)
livestock
($190

million).. Lumbering provides
37 Wall Street

ids

und^r the

output

frozen

rf

Co-Manager of their Grand Rap¬

of local products such as
famous Idaho potato.
Today
more than
40% -of potato

ceeds farm

RICO

aopointment

a

essing

into prepared foods such
French fries, marketed in cans

Rapids

GRAND RAPIDS, Mich.—McDon¬
ald-Moore & Co. announces the

em¬

goes

,

.

added

However, the
on

ufacturing ($250 million)

DEVELOPMENT

about

-

.

price

times 1959 earnings or 19.6 times
budgeted 1960 earnings.

the

federal income

taxes.

PUERTO

the future.

more

recent

around 48%,
paying
$1.70,
the
stock
yields
about 3.5% and sells at about 21

acres in
the
been developed for

farming,

present shares are budgeted.
interest credit may decline

moderately in 1961.

million

now

acres

phasis is

or

GOVERNMENT

2V2

1963.

somewhat higher interest credit
1960 earnings of $2.55 or more

on

an

have

in

on

Poor's, but increased to 4.6% in
1958, and the management antic¬
ipates further improvement. With

estimated

share

company
and
the
area
have shown rapid
growth.

irrigated

or

53% "tax-

were

year-end net prop¬
erty account dropped to only 4%
in 1958, according to Standard &

Utah

others;

ex¬

70%

tax-free in 1960, 35% in 1961, 25%

mar¬

the line. For

on

is

payout
around

free" in 1959; the management es¬
timates that they
will be 40%

plants.

considerable

when

of

pected

hydro

power

future

and

con¬

distribute power

new

comes

the

73%,

of

range

being

is

Idaho

other utilities to
from
All

greater production-sound investments

young

company's
keep it
30%-35%.

to

Trans-World

area

being trained for

be

World Savings is

Some

now

the

to

seems

dividend payout is about

miscellaneous 14%.

are

in
-,

the

average of 7,227 kwh per
Revenues are made up as
follows: residential
27%; farm a->d
irr'gation 21%; commercial 20%;
industrial 18% and wholeiale and

people and adults

decline

within

Alvarado

u:e

of

1959

J;•

and

years

policy

annum.

thousands

the

.//

The common equity ratio has
averaged about 32.5% in the past

for

public—boating, pic¬

third below the national
average
domestic and rural customers now

Rico,

Ox¬

and

expenditures
That factor fully

year.

earnings.

company's
revenues
have
tripled since 1948. Becaure of revsidential rates more
than
one-

gently needed in today's world of challenge. In

Brownlee

for

accounts

The

thriving Puerto

in

construction

during that

i.

recreation

as

general

peak

bow

Care has been taken to provide
flood control and navigation as
the

interest, amounting to $1.08 a
of an overlap¬

ping

about $180 per kw,
reasonable price

very

■

revenues.

share—the^result

Construction

hydro plants.

phosphate

plants,

steadily to $2.56, dropping to $2.32
1959. As is frequently the case
with
hydro companies earnings
were distorted
in 1959 by an ab¬
normally high credit for construc¬

may

but

and
fur¬

in

in the summer of
Construction of Hells Can¬

be

and

in the ensuing six years increased

completed

years,

revenues

yards

earnings
remained
ir¬
regular during the years 1948-52,
dropping from $1.58 to $1.38, but

being

placed in service in January 1959.
Construction on Oxbow's 218,000
kw plant is under
way and should

may

*

electric

capacity of 90,000 kw
contributes about 19% of in¬

and

total of

a

railroad

aggregate

dams—Brownlee, Oxbow
Canyon—with

industrial

cement
mills,
creameries, food-proc¬
essing
plants, flour mills
and
grain elevators.
The largest cus¬
tomer
is
Food
Machinery
&
Chemical, which currently has an

huge dam at Hells
Canyon was finally won by Idaho
Power, which substituted three
and HelL

engage in business.

their homes

dairies and

The historic battle
over

ski and

or

phosphorus

fertilizer

under construction

are

or

make

installations

nace

major hydro plants and

two others

hunt, fish
to

from

come

shops,

has

company now

back

Principal

snows in the mountains)
standby steam plants are

no

out to

Present

near

Ontario, Calif.

more

State income

.

and

served

productivity and

has

come

v.

are ur¬

business and recrea¬
doubled in a decade, to

virtually

because

workers—efficient office personnel—all

increasing.

tourist

all of,its power from hydro plants

obtainable.

industrial

has been

utilities

$1.50

competent

S.

$104 million last year. There are
many -instances
of
people
who

Power

—

U.

Twin Falls, Nampa and Caldwell.
The company is one of the few

keted

Technical specialists

continue
of

located in
processing development

from

tion

Boise^ Pocatello,

are

60%

resources are

phosphorous

balance

the

and

ob¬

are

should

for production of commercial
fer¬
tilizer and elemental

Oregon and northern Nevada.

ern

beef

About

grow.

assist the migration of salmon and
steelhead to and from the Pacific
Ocean 600 miles downstream.
A

Wilshire Boulevard

4*/4s

1 i f.

for

Valley of southern Idaho, east¬

er

for

ia l Co. has

in Los

the

a

Galen

an c

nounced that

granted

4%
c

J.

World Fin

dis¬

month

ANGELES, C

dent

demand

phosphate

1961.

LOS

of 16,-

serves an area

000 square miles and a population
of about 400,000 in the Snake Riv¬

yon

Opens Branch Office
was

Idaho Power

be

150,000,000 for the 4% due May 15,

lion

terms

change.

1962, along with the $370,000,000

is¬

to

market

allocations

the

up

money

to

able

securities likewise appear
favorable features of the

the

opinions

issues

new

to

given

that

subscriptions

amounted

strong that the takings
new

Banks.

payment
the

Treasury accepted $2,-

from

Treasury

of investors in the

Central

in

1962,

notes

subscription
were

15,

predictions

of

of

the

the

bond

was

150,000,000

time neared for the closing of the

books,

be

of

catering to the owners of
maturing obligations and the

the

somewhat larger allotment of $2,-

specialists

will

without

it

report¬

new

which

due May

with

made

trict.

maxiT

a

the

of

and
needs

World Savs. & Loan

for the available funds to be very
keen. As a result, the 4%% bond
to

the

meet

small in¬

were

selection

offered

Shorter Issue Well Taken

money

May

be

can

funds

as

the

be

issue.

Treasury went into the

scribed

ury

in

at¬

charitable

edly the buyers of the
Bond

tax

return

surprising that such a
subscription was made to

con¬

that

and
more

Government bonds,

in

ditions deteriorate further, money-

believe

issues

with under the

plans. In addition, the Treas¬
will be given wider latitude

new

not

small

They

the

With the

non-Federal

on

from

corporate

not go over, does not in the
interest

the attrition which
accompanies
refundings

Also,

cesses.

raising money must com¬
with the yields which are

sheltered bonds.

that

the govern¬

pete

possible for the Treasury to offer
a
4V4% bond, even though it did

mean

Sound

The announced changes for han¬
dling future refundings
of the
government appear to be sound.

in going into the

ment in

available

it

made

which

such

economy

are

conditions

Keen

Too

Financing Technique

long-term sector for new funds
up against the capital market The paying off of maturities and
competition from corporate and the
selling
of
new
securities
tax-exempt obligations. In a free should eliminate speculative ex¬

confused

capital and

the

was

credit condi¬
The

in

for

looked

not

foreseeable future.

be

to

is

future date.

some

The Treasury

to

trying to digest the
Treasury's new money, refunding
and rollover operations.
The improvement in money and
credit

which

New

ceiling for obliga¬
due date of longer

bring in subscription in size such
tions

will. have

and

question

crease

success

a

unless there is a sharp de¬
in interest rate levels,

years

rate of 4V4% would
is still open

coupon

been

4V4%

than

as

a

have

evident

is

the

as are

the

that

due date of eight, 10 or 12 years

and

Nevertheless,^ it

yield standpoint

a

Company

attractive

as

corporate and tax protected obli¬

means

market fol¬
lowers, the government did get
softie
long-term investment dol¬
money

many

are

Treasury; gations. Accordingly, it appears
has tested the capital market with to be evident that the coming rea long-term bond non-callable for
fundings will /be provided for
15 years, and it turned out to be through the flotation of securities
a flop.
Whether an offering with with a maturity of less than five

target which had been

less

or

and

from

mark.

issues

an

M. A.

Sedgv/'ck Joins
Aochincloss, Parker

-

NEW
A.

CANAAN,

Sedgwick,

Vice-President
surance

Conn.—Malcolm
financial

formerly
of

The

Home

In¬

Company^ has become as¬

sociated with Auchincloss,

Parker

annual income of $160

million vs.' &
Redpath, 23 Cherry Street, and
$101 million a decade ago.
The
livestock industry is also benefit¬ will direct operations of this office

ing from the. rapid increase, in
population in the far west, and

jointly with Frederick H.
son.

""

Clark-

Volume

191

Number 5942

.

.

.

The Commercial and Financial Chronicle

(1639)

23

New York Security Dealers Association

Samuel Weinberg, S. Weinberg, Grossman & Co., Inc.,? President of New York Security Dealers)
Association; Paul Windels, Jr., Regional Administrator, ^Securities & Exchange Commission'
S. Truman Bidwell, Vice-Chairman, New York Stock Exchange; Frank Dunne. Dunne A

Eugene G; Statter,

Mabon

meritorious

&

service

Co.,
as

being

presented

with

President. 1954-1959

'
-

Uealeis

lph

De

Frank

Dunne,

Dunne

&

Co.

'»

^

by

a

cup

:~

.

for
V, ' f

•>

Joe

A-V'v:.;

"




Bigone,

Albert

General

Port, John Anton,
Investing Corp.

and

M. Topol, Greene and Company; Joe
Rinaldi, H. D. Knox & Co., Inc., Boston; Hanns
Kuehner, Laird, Bissell & Meeds; Edward W. Schaefer, H. D. Kncx & Co., Inc., New York;
Spacek, H. D. Knox & Co., Inc., New York

Cowden, National Association of Securities Dealers; Lee Baiter,
Troster; Singer & Co.; Ed Newton, National Association of
Securities Dealers, New Orleans; Irv Hodies, Searight, '* Ahalt & O'Connor, Inc., New York-

<"'unnane> Coca-Cola Co.; Edward J. Enright, Executive Secretary, New York Security
Association; John F. Bills, guest; James R. Dougherty, Radio Corporation of America

Pasquale, Anthony

Robert

Alvin

D.

Stone,

Jr., all

of

Bob
•

1

Mackie, Singer, Bean & Mackie, Inc.; Micky Pauley,
*
Singer & Co.; Arthur Weigner, Lehman Brothers;
Jules Bean, Singer, Bean & Mackie, Inc.

Murray W. Stillman,- Abraham & Co.; Julius Golden, Greene and Company; "Duke"
Hunter Associates, Jersey City, N. J:;
Michael- Ensenat, Greene and

&

Troster,
'

i

Hunter, Wellington
Company

R. Amott, Amott, Baker & Co., Incorporated; Frank Dunne, Jr., Merrill Lynch,
Smith, Incorporated; Robert Farrell, Laird, Bissell & Meeds; Edward Am.endola,

Harry

E.

Pierce, Fenner
Bache & Co.

24

Chronicle

The Commercial and Financial

(1640)

.

.

.

Thursday, April 14, 1960

34th Annual Dinner

Joel Winston,

Ira U.

Cobleigh, Enterprise Economist; Walter Filkins, Troster, Singer & Co.; Fred Kunzinger, Harris,
Upham & Co.; Charles Offerman, Troster, Singer & Co.; Phil Dempsey, Harris, Upham & Co.;
Stephen Gucwa, Merrill Lynch, Pierce, Fenner & Smith, Incorporated

J.

A.

J. A. Winston & Co., Inc.; Irving Bernstein, J. A. Winston & Co., Inc.; Morrison Gilbert,
<6 Co., Inc.; S. B. Cantor, S. B. Cantor Co.; Howard Emen, National Association of
K. Bates Uttrich, First Albany Corporation, Albany, N. Y.

Winston

Securities Dealers;

.*** mmm* « « « » #
wm
m mmw* m « MM » mrnim
mm mm. m

8»&8»»888
*'**#***»«

Mmmmg

mm mmmm *****
»MMMMMM M 8 8 8 888

mmMMMM m 8*888™

rnrnmrniimmmm

M8mMMMrnM88M**J$

■mWMMWmMMm*
wmMMMm
MMMmMM

mttmxm
m

mmm
mmmmM
MMMmMM
MMMMMm

*88**
mm mm
88 88*
88 888

88888

mmmMM
88 88 8
88 888

888888
88888
88888
8 888 8

Saul

Golkin,

Gclkin,

Bomback

Golkin,

&

Bomback

&

Co.;

George

Golkin,

Irving

Abelow,

Co.

Carl

Mitchell
M.

&

Loeb,

Company; Jack
Rhoades & Co.

Germain,

Charles

Bruggeman, Dean
Eaton

&

Witter &

Co.;

Jack

Jensen,

Howard, Inc., Boston

Nathan

Co.,

A. Krumholz, Ogden, Wechsler &
Krumholz; Robert J. McConkey, Great West Life Assurance
Winnipeg, Canada; Michael Schneider, Burnham and Company; Theodore
Schneider, Burnham
and Company; Tom
Davis, Registrar & Transfer Co.

Mike

Osheowitz,

Golkin,

Bomback

Carlisle

& Co.; Alan Weinstein,
Golkin, Bomback & Co.;
Jacquelin; Malcolm Chodes, Golkin, Bomback & Co.;
Murray Forman, Golkin, Bomback & Co.

Jerry

Golkin,

Brown,

Laird,

snn

Nicholas

Baidino,

Bernard




O'Connor, John
Registrar

&

-

E.

Buell,

Transfer

*

«

and

Co.

William

J.

Miller,

all

of

Louis

I

8

1 >\

*

'
,

Walker, National

Quotation

Bissell

&

W.

-•

Bureau; Sidney Jacobs, Sidney Jacobs Co.;
Meeds; Terry Baker, Laird, Bissell & Meeds

Tom

Number 5942

Volume 191

.

.,

The Commercial

and Financial Chronicle

(1641)

25

At the Biltmore Hotel
'

1

Arthur

G.

Freston

Bisgood,
Cullen,

Transfer Co.;

&

Registrar

Harold

Swarthout, Swarthout

Swarthout &

Kemmerer, Inc.; Stuart Wixson, Hodson
George Springer, Hodson & Company, Inc.

&

& Kemmerer, Inc.;
Company, Inc.;

Maurice
Tom

Hart, New York Hanseatic Corporation; Phil Carret, Chace, Whiteside & Winslow, Inc.;
Meeker, General Counsel, Securities & Exchange Commission; Edward T. McCormick,
President of American Stock Exchange; John R. Dunne, Guest

G.

mmmm®

;'x:v
•

•.

SSSSxSSi

.

;*•

-

^^www.^w.yw y.vi-y.:
>
4
o wf

v>Av>x

j

f

{

hmm
-

•
.

'i

ill

ill
Larry Lyons, A. A. Geller,
Allen

(-<*

Ralph Tager,

-

'■

&

and Walter
Company

<->v.

A

.

,

O'Hara, all of

Robert

N.

Joseph

Kullman, John J. O'Kane, Jr. & Co.; Charles Weil,
Walker & Sons; Joe Shiels, Greene and Company

L.

Beck, Commercial & Financial Chronicle; Robert
Associate Attorney, New York State Banking Dept.

C. Otto,

V

Tager Company, receiving

prize

from

David Morris, David Morris <6

,rris' D<™id Morris

& Co.; William C.
Schmidt, Chase Manhattan Bank; George
Chase Manhattan
Bank; Kenneth J. Sickler, Chase Manhattan Bank;

Elbridge H. Smith, Stryher & Brown




Edwin

Bill

Co.

J. Varley,

McGivney, Hirsch & Co.; Connie Sheridan, Irving Abelow, and Herbert B. Abelow, all of
Mitchell & Company

David Morris, Dawd
&

*Morris & do.) William

D. Moran, Assistant Regional Administrator, Securities

Stock Exchange; Rubin Hardy,
Traders Association of Philadelphia

Exchange Commission; Edward C. Gray, Vice-President, New York

First

Boston

Corporation,

Philadelphia, President of Investment

26

The Commercial and

(1642)

Financial Chronicle

.

.

.

Thursday,, April 14, 1960

April 8, 1960

Edward Schoen, Jr., Associate Regional Administrator, Securities

Dunne,

guest;

& Exchange Commission; R. Michael
George A. Searight, Searight, Ahalt & O'Connor, Inc.; Louis Farrell, guest;
Carl Benson, C. A. Benson <£ Co., Inc., Pittsburgh, Pa.

Robert

Wallace, Troster, Singer & Co.; Robert Lienhard, Troster, Singer & Co.; C. A.
Levine,
Searight, Ahalt & O'Connor, Inc., Washington, D. C.; Louis Volkomer, Robert A. Martin
Associates, Inc.; Ernest Lienhard, Troster, Singer & Co.

III

■ Bi

Hi

Riltil
illi

«««•
xfcSS»*:

-

'..ft-':; ,$$*«>»*
««!!«(SS $ «;
:

<«-»« ?>«««»«<
»»»***

5S8ssfc88«2S«n
HfSSafe«a>8**»

»<»»*>?« 3« *4
«8***»«*8#8

!§fs*«*SS***
Harold

George
Josepn

C.

Shore,

Rieber,
t-.

Harold

National

C.

Shore

Association

&

of

Co.;

Lewis

Securities

John

Arnold

Dealers;

Eugene

Keiny, Chairman, American Stock Exchange; Jack
Barker,
Vice-President of Security Traders Association of

J.

Kelly, National Association of Securities Dealers; Wilfred
Day, Chas. A. Day & Co., Inc., Boston; Bert Pike,
Troster, Singer & Co.

G.

Statter, Mabon & Co.;
Lee Higginson Corporation,
New

Col.

Oliver

J.

Troster,

Securities

Herbert

Singer,

Singer,

Bean

&

Troster, Singer & Co.; Gene Flach, Sunshine
Exchange Commission, Washington, D. C.;

&

York

Mackie,

Assistant

Attorney General, New

York

Inc.;

Eliot

Biscuit

Carl

Steuer,

Co.; Philip
Madonick,

A.

guest

Loomis,

State

HI

WmM
mm

cj-

'

'

Jk

1

w/Xp''
*

'I

•
;$Siv

'

fc 1

■'■&&

«

1

m

W/.W.

*MSWW>

iii§

,

Aaron Netburn, Frank

J.

Ronan, Theodore




New

R.

Young, Hans E. Ben, and John

York Hunseatic
Corporation

D.

Ohiandt, Jr., all of

Ted

London, Englander & Co., Inc.TMArvin
Danielson, Gude, Winmill & Co.; Fritz
Golkin, Bomback S 'Cd.; Norris Roser.baum, Englander & Co., Inc.

(Red)

Johnson,

Number 5942

191

Volume

.

.

The Commercial

.

and Financial Chronicle

(1643)

IT

AS WE SEE

Continued from

first, and

page 1

have meanings quite different from
what one would normally expect—have an encouraging
ring "Over the years the core of Republican purpose has
been to" exalt individual opportunity and human dignity
and to enthrone freedom," he assured his listeners. He also
told them that "we stand squarely with Lincoln in the
conviction that Government should undertake only that
past proved to

the

which the citizen cannot
Government should lend

true American

for that

,

that and the other semi-socialistic purposes.

are

we

The

page 2
,

,oa

.

,

,

,

2tfrn
T Av-n ifiQi«nSthn0PeraKtl0n-attheCl?I«
In ^
the r
beauty service of
1948, the number
260

p
Products.

is

field,

it

is

at

first

the

teen-ager

of

Later
and

once

again)

more

she

is

older, she

re-

(and

again and
retain the charms that

to

1DP911
mean

when

on,

grows

miirh
much

SOso

fn

to

Tbo

her.

The

nnm-

com-

and

rising

steadily.

been

in

There

Many of these have
huge new shopping

the

centers, located in America's fast
growing
suburbs.
An
unusual

point,

which

fiofoc

tiates

sharply

differenILa
! from
the

nnnvntinn

this

operation

provide the
fashionable hair
in

hair

customers

styling.

coloring

and

beautician service
New York.

m

of

name

maintained

prestige-laden

"Antoine"

Seligman

&

Schools
advanced

are

The

with

Latz

is

used

in

i

73

close
tween

its

salons.

tha

relationship

majority

customers

and

dressers

stylists.,

^

Th

or

year

of

regular

followinc

iq

brief

a

financial history of the

Op Profit Mgn

Net Profits

5.1

973,997

1.22

994,376

1.24

1858

32,431,995

4.4

949,848

1.18

1959

35,621,974

5.3

1,276,504

1.62

*Fro-forma

Moneys laid
1959,

out

itable

leased,
little

«

Eisenhower

the: first
was

two

or' three

years

in office he succeeded in

that President

budget outlays, but since
consistently running ahead
took
as

a

the

phasis

abandoned. In
has

alanced
10ns are

shifted

budgets.**

recent

more

from

reduced

tio

Federal, spending, to ;

Of course, if all items and considera-

taken

fully into account we
really balanced budget,^
except in

s^nse. And
such balances
°ut

doubt

and

n^cdest outlays

without
— as

as

may

denial

have
a

no

prospect of

purely technical

be in prospect will with-

be

a

result

not

of

more

one would expect from the recent

Sacralizations of the President—but rather of larger tax
the ]Ct*°nS*
/latter result, unfortunately, flows from
arge proportion of
®

progressive income taxes levied

ividuals,

rise and

one of

the heaviest hands

now

laid

on

on

enter-

individual initiative.

a^°r ^as

^ere been

nature begun by the New

by the Fair Deal. We still
f^ls £n°nrious numbers of people drawing salaries
shcH \ G Treasury f°r
performance of work which we
^7ny all be much better off for having left undone.
so"call£d "agencies"




are

currently

still

flourishing

as

from the

one

that

time

t it is
year,

the

ot r
the

$1.44

980,697

1.23

;

outstanding.

:

\

■

'•':/7

insurance

nstat d w

Plan

automati-

INamed Director

.: .,
HodeS; a general partner
jjardy & Co., members of the
New York
Stock Exchange, has
been

elected to

rectors
pany.

of

the

Board

of

■

;

^

^ >' v'7t7 ...7>-

'■ 7 7'

v

this,

future

financing

Fidelity Inv. Corp.
offices at 3500 North Central Ave.
Bert
,

Cavanagh

is

a""principal

the : firm.

.

;

7

salons

&

Latz

of

way

the

are

needs

capital
end

OVER-THE-COUNTER

re¬

seems

Common Stocks

ex¬

of

1959

(Oct. 31), working
$5.1 million. Cash and
securities

$6.5

million,
/

The

\xk

On Which

alone

CONSECUTIVE

issue

shares

of

ra-,

B

stock

282,500" shares

of

class

(equal to

B

shares

DIVIDENDS

-

Have Been Paid From

5 to 176 Years

($1.5 mill.), 467,-

Class

CASH

times

current

and

The

common.

common

:rj in all respects save
dividends)
>
held by management, which

—

60

PAGE

BOOKLET

—

are

alpayments at the rate
of only - one-third
that declared
on the common.r
In this way, Se¬
ligman & Latz secures the benefit
.

lows

:

of.

a

itself

bigi plowback

while

maintaining

dividend
;

more

for

public

of

earnings

the

Included

paid, cash dividends paid during the twelve months
ber 31, 1959, percentage

analysis

of

the

ahead

difference

between

the

over-the-counter

listed markets.

an

and

'

COST OF THESE

a

1

a

to

25

On orders of

probably $3 million in.excess cash

i

199

up

100

or

more,

a

25

cents

each

20

cents

each

15

cents

each

three-line imprint

is included without extra cost.

cover

will

BOOKLETS

24

to

200

of dollar earnings are plowed back
each year.
Seligman & Latz has
which

Decem¬

shareholders

few years.: Here
company which in 1S59
earned, more than 20% "on its
common
equity.
More than 70%
have

to

yield, and year-end quotation, also

generous

desirous; of current income.

/Look

we

number of years consecutive dividends have been

are

someday be put to
good use.
Even at the present
rate of growth, it is easy to fore¬
see
sales of $50 million or so in

on

*

the front
>

,

3 or 4 years, while a return to a
profit margin of only 7% would
indicate earnings of $2.50-$2.75 a

Commercial
VVm.

25

share. Add then the profits from
possible acquisitions and it is easy
to 1 envision
Seligman
&
Latz

Seligman
shares

are

Counter

&

Latz's

Financial

Chronicle

Place, New York 7, N. Y.

enter

our

order

for

___booklets

.

traded in the Over-the-

Address

_.

market

:

'

'

.

By

-

on

"Over-the-

accompanying dividend tables.

Firm Name

common

,

Co., Publishers

Counter Common Stocks'! and

around 14 yield¬
ing 5.7%.
Stock ranged from 16
high to 13 low from Nov. 30, 1959
(date
of
original
issuance)
to

date.

Park

Please

above
their
Particularly
in this high and vulnerable mar¬
ket, this stock appears to repre¬
sent extraordinary value.

&

B. Dana

.

PHOENIX, Ariz.—Fidelity Invest¬
ment Corp. has been formed with

I960 EDITION

after

more

better ,than 3 to 1,. Equity.
now
consists of a small

was

500

or

Di¬

Gladstron- Boat Com¬

with¬

shares \ selling
far,
modest current level.

any major retreat from the vast

^rograms of a semi-socialistic
hav Td n°Urished faithfully

shares

grown

all

At

liabilities.

preferred
1

aggregates before he

em¬

was

capital;

reduction

political polemics

capital

"

office, and if estimates for fiscal 1961
may be taken
guide, the struggle for great fiscal restraint has been,

all but

year

equalled

that time the total has been:

of

the

fiscal

total

.

some

0

of

Seligman

in

government

erans

upon the Treasury.
They have been running at
better than five billion
for a couple of
years, and are ex¬
pected to do so
again during the current fiscal year, and
to rise
appreciably in fiscal 1961. '
,,

P

new

year

Since

penditures.

the claims of the Vet¬

to

come

a

outside

unlikely.

for "labor and welfare" have been

we

to

course

less than three billion.

They were running at something over
during the latter Truman years. The

story is similar when

until

inception.
Regardless

expected to be approximately the same during
the current fiscal
year and to rise above the $4.5 billion
mark in fiscal 1961.
year

/7 $1,144,105

the ple¬
openings,
knows, new shop¬
ping centers do not become prof¬

are

a

750,000

7.1%
5.8

31-dav grace

If thp navm~nt ^ nnt madP

within
in

a

from the date the payment

by

rise, too. They approached $4.5 billion in fiscal

two billion

nrn^mm

for as everyone

took office, the
Treasury
called upon for
only slightly more than one billion,
and in fiscal
1953, one-half of which fell in the Truman

the

on

thora of continuous

was

on

based

Though sales have

prices and farm
1952, the last full period

was

hi«

out pause, profits in recent
years
have been penalized

Eisenhower

Administration, the figure

nf

A olanholder has

C£

of Common*

4.8

year

hnlan^P

James

com-

—7 31,280,146

During the fiscal

person's investment program

a

Namprl Diiwtor

six

—7 29,591,126

President

of

;

„ix

a brief

1957

income.

new

New Jersey and Washington.

hair

1956

of it devoted to the stabilization of farm

Com¬

Mutual

by insuring his life for the unpaid

7 77/7;

inveighs

before

the

of

Pla"' ^

Per Share

Net Sales

$5.6 billion. During most of the years he has
office the figure has been over four
billion, most

of

The Plan initially is being offered in the States of New York,

pany:

find that

over

Securities

manager and

Group

"L,",7™,'
^
DCCUIIlcS

be-

speci fic

he f04°wing :is

by

of

Personal

against "tapping the Treasury" and the solution of prob¬
lems by the grant of
subsidy, but in January of this year
he estimated Federal
outlays for largesse to the farmers
of the country
during the current fiscal year at over $5
billion, and his estimate for the forthcoming fiscal year
been in

distributor

o^-ry retail enterprise, is the
to

27,715,860

rises to

American

SIP-LI
Plan
(Sys¬
Investing Plan—with Life
Insurance) assures the completion

have

$26,568,468

He

North

in/^ paSJ, Six ;perioPd
£ ril.p

alone.

years

now'

1954

imitators.

,

reas.^ls c°rnPany had but

•

R

7.

>

tm

1955

his

Commonwealth

and

Income Fund has been announced

Security I Like Best... $

Continued from

all that he proposes—so far as
he has committed himself—is to avoid the extremes of the
and

Fund

tematic

and

Roosevelt

Invest¬

Commonwealth

Stock

monwealth

married

He has stood

studied

Commonwealth

Company,

general

turns

staunchly by his guns in opposing the more extreme of the
spenders among both Democrats and Republicans. For all
this we gladly give him full credit.
all, when the facts

of

ment

by

glamour.

again placed himself on record as insisting upon greater
moderation in the paying out of taxpayers' money for this,

n

7V

shares

beginning in returning to

Republican tradition

or

new

Company, investment

allure

often than not appeared to do whatever they could
to hamper and discourage business. Let it, moreover, be
said that in recent months the President has again and

a

tradition,

matter!

real

a

j

life-insured systematic in¬
vesting plan for the purchase of

.

We have
yet to make

StVa&nJT
bVfh1
exhibiting her youthful

more

of

Insured Inv. Plan
A

a

frankly and warmly affirmed that the
Eisenhower Administration succeeded in establishing a
more friendly atmosphere in Washington toward business
enterprise of all sorts. It was in this respect in sharp con¬
trast to immediately
preceding administrations which

followers

Commonwealth

do properly for himself—that

Now let it be

all that he has done

host of other bureaus—

a

offices in the Federal Govern¬

or

big effort early in the Eisenhower
Administration to revise and
improve our repressive sys¬
tem of income
taxation.
Nothing has been accomplished
to date.
r.:;""'-V.'A
77.7"
'
;
'

■

helping hand but never a
heavy handout." He also took advantage of the occasion
to heap rather well warranted scorn upon some of his
detractors and political opponents in and out of Congress,
saying that "some opponents apparently feel there is no
problem that cannot be solved by a subsidy — that all
social and economic difficulties can be speedily resolved
by tapping the Treasury.".
" « -

But after

it could be said of

so

additions to bureaus
ment. There was a
or

27

.Date

,

of
/

28

The Commercial and Financial Chronicle

(1644)

by ROBERT E. RICH

January and

February sales also

included 8,000 shares of

achieved

highs.

*

Abacus

It is

secret that the leaders of

no

the life insurance field
in

the

matter

at odds

are

common-stock

of

investments.

Thus, the chief of
largest "life" company
will argue forcibly that common
stocks must be only a most neg¬
ligible part of the firm's portfolio
America's

—and

is

a

mutual investment fund of diversified

common

stocks selected for investment

quality and income possibilities. Mail
this ad for free booklet-prospectus to

CALVIN BULLOCK, LTD.
Established 1894
ONE

STREET,

WALL

such

Telegraph.
will

take

A

in

be

must

American

as

runner-up

the

issue

an

&

Telephone

view

company

variable

that

annuities, built on stock port¬
folios, are the only adequate an¬
the

to

swer

YORK 5

NEW

then, the bulk of the

even

investment

now

the

largest

company

inflation.

of

menace

Comes

third
of its kind—the

of

the

United

disclose

States—to

that it has begun buying common
stocks at the rate of about $40,-

Address,

000,000

a

and

year

it

that

may

continue buying at this pace for a
decade.
Until recently, this com¬

counted precious few equity

pany

The

11.8%

1959

was

to know its plans.

know but

The

They

tardily, that the mutual

funds in recent months have been
cool

Lazard Fund,

to

sues,

oils, steels, aluminum is¬
airlines and aircraft.
And

they

also

know,

long

after

the

events, that managers of portfolios

inc.

have shown

growing interest in
utilities, automobiles (General
Motors
and
Ford),
chemicals,
banks and building products.
Since Equitable Life is talking
in terms of

the

Report

a

decade, the

a

decade

past

survey

of

investment

on

tastes, undertaken by the National

for the three months ended

Association

of

Investment

Com¬

panies,

is most interesting.
This
study shows that oils, financial in¬
stitutions (banks and insurance
firms) and utilities have held top

March 31, 1960

Available upon request

positions in the portfolios of mu¬
tual funds during the past decade.
The analysis is based on reports of
20

member

resent

companies which

67%

member

of

the

total

open-end

assets

44 Wall

New York

10

stocks

mon

Street,

were

5, N. Y.

per

share

on
March
$37,016,012

with

chemicals,
metals

under

from approximately $950,million," it stated. Per
asset value during this

grown

This study, of course, deals with
industries—no less than 27

to $10

000

whole

net

share

Funds,
period has risen 95% from $12 to
like insurance companies and in¬
$23.39 (including capital gain dis¬
dividuals, don't buy industries —
tributions of $2.45).
they buy stocks. Thus, an Am¬
erada may be sold while a Stand¬
ard Oil (Indiana) may be bought.
Delaware Fund's gross sales to¬
groups came

Or

Kennecott

a

while

of Jersey

stock

Stand¬

a

continues,

it has

as

1960 to set

All

these

peared

in

combined
at

be the most favored

first

new

a

investing

in

bonds and preferred stocks
selected for conservation of

principal and
come

and in

selected

for

one

stocks

income

and

profit possibilities.

latest

Changes

national

and

distributor

purchasers
for Delaware Fund and Delaware
n cl u d e d
Income Fund.
The $2,589,013 in¬
here), although its market per¬
crease, he said, represents a 59%
formance for several
now

years

has

been

extremely

gain

Nor

poor.

place

a

ago)

year

been

fire—General

Motors.

pressive

been

has

im¬

Most

the

rise—in

portfolios—of
yeai^now

both

on

International

Machines.

ness

It

investing pri-

selected for possible
term

stocks

long-

growth of capital and

future income.

is

counts

27th

to

18th

This

is

the

ago

giant."

sales

in

the

Westinghouse

Electric, which has

years

reports

two

is JL 4th; Also impressive
from

come

those

of

Delaware

of

Income

first four months

which

over

begins

to

amounted

two-year span.
that a few
called "the ailing
a

was

ahead

$1,-

Fund's

running at record levels.

year

In

of its fiscal

Dec.

1,

$1,161,031-—up

they
176%

in

gross

Plainly,

the

as

United

money

more

sub¬

ahead, dur¬
ing which the company expects to
be investing nearly a half billion

Funds,

Inc.
a

declared a
share from

investment income

net

securities
clared.

Fund

profits
The

on

shares.
a

The Funds Report
1

A total net asset value of

371,216, equal to $26.53
at March

31,

Corporation.
assets
per

of

report
This

A

of

downs

percentage

an

of

rise

stock

or

industry holding

de¬
can

Lehman

compared

$229,045,579

or

with

$28.07

share at Dec. 31, 1959.

capital gain dividend of
$1.34 per share from gains realized
during the year 1959 was dis¬
tributed to
stockholders
during

the' quarter.
Of the
total dividend, 571/2

$14,275,221
or $8,212,-

730, was paid by the issuance of
292,268 shares of capital stock of
the

purchased

and

ups

of

The

ration

the

per

$290,share,

was announced in the

three-month

disclosed

on

corporation.
was

balance

The

balance

paid in cash.
that

the

the

The

corpo¬

common

during

of

stocks

quarter.

caused

The five

leading industries—oil,
financial, utilities, steel and chem¬
icals—have held their
tion

since

1957

same

posi¬

although the

per¬

centages have varied. In the 1949-

prospectus

write to

period

under

stocks

represented

Wellington Company, Inc.

□

factors.

CP

one

Wellington Fund

O W Ellington Equity Fund
NAME

ADDRESS
CITY




holding at

of

the

the

You

oil

In

that

industry

year

the

second, topped by

were

recall
on

counter.

Utility

com¬

largest combined

may

steels in 1953

been

the

each year-end with the

exception 1953.
oils wound up
steels.

study,

that

the

the bargain

commoa

third

or

stocks

higher in

the years studied.

It also is

interesting

h

a ve*

each o£
v
- ~ r

of

compares

securities

to

$2,519,660.
Common

United
A

dis¬

was

also

de¬

and

dis¬

are payable April 29 to
shareholders of record April 14.
*

*

:

95.6%

of

total

comprised

net

assets

at

March
the

31, 1960. Investments in
public
utility
industry

amounted

to

15.9%

of

net

assets,
largest
single
category
of
common stock
investments. Other
the

large

common

stock

investments

oil

& gas
14.8%, chemicals
metal & mining 8.5% and
electronics and electrical
equip¬
ment 8.3%. Among the
purchases
were

Mutual Trust of Kansas City re¬

with

for

Feb.

value

9.5%,

of

of

Indiana

General

Corporation, 5,000 shares of
-Hercules Powder, 5,000 shares of
to note that Potiach Forests
and 5,000 shares

Fund

reports

quarter and net asset

the

shares

was

$13.10

against $14 at Nov. 30, 1959.

Total

net assets fell to

com¬

$81,076,801,

pared with $89,068,308 at Nov. 30.
Adams Express Co. reports that
March
31
net
assets
totaled

at

$90,728,452,

equal

earlier.
1960
on

,Share

to

with

share

a

total

3,250,048

March

$27.91

to

This compares

a

year

increased in

from

31, 1959.

a

$98,-

3,172,752

The

share
figure fot 1960 is after deducting
$1.35 capital gain dividend paid
per

last December.

amounted

$16.32

assets

at

Corp;

March

31

$38,501,367, equal to
each of the 2,357,993

outstanding.. This com¬
with $41,196,275 and $18.31

pares

share

a

*

International

to

on

shares

*'''

*

the;

on

outstanding

a

2,249,380

year

*

•

shares

ago.;

*

*

}':,]■

Petroleum Corp. of America

ports

net

assets

at

the

end

re¬

of

were

$30,984,992, equal to
share, against $37,950,001,

a

$19.26

a share
a year
earlier.
Capital shares at latest report to¬

or

taled
a

2,053,143,

from 1,970,400

up

year ago.

American Life Fund
Issue Withdrawn
Regarding the proposed issue of
1,250,000 shares of capital stock of
American
Life
Fund
Inc., the

ports that during the past quarter

fund and The First Boston Corpo¬

ration

increased holdings of American

announce

that

interest

the

Can, Bell & Howell, Champion
Spark Plug, Columbia Broadcast¬
ing
System,
Fruehauf
Trailer,

of securities dealers and investors,

Great

contemplated issue to market.

Northern

while

substantial,

has

been

in¬

sufficient to warrant bringing the

To

Railway, Marine
Midland, Minneapolis-Honeywell
Regulator and Pittston Co. Dur¬
ing the period Mutual Trust de¬

would be contrary to the original
conception of this undertaking.

ceased

Accordingly,

holdings of American Ma¬

chine &

phone

Foundry, American Tele¬

&

offer

Telegraph, City Stores,
Co., Pullman, Inc. and

Westinghouse

Electric.

It

10,

Treasury bills due Dec.
and Feb. 4, 1960. New

1959,

bills

due

included

last

month

reduced number of shares

M. H.

elimi¬

nated U. S.

commitments,

a

Treasury
and

next

month,

the

withdrawn from

Ford Motor

&

Co. has opened a

If?1/? Fifth St. North under the

The

was

highest

in

ume

its

Corp.

/

'V/Y:,V

first-quarter

'7-

of

sales

first-quarter
with

stock

by Investors Plan¬
America, a mutual
organization.
"Our
sales

others

now

purchases," said Walter

Benedick, president. He disclosed
that the
ness

finn's

32.9%

was

$31,703,000
quarter.

month's

first-period, busi¬
higher than the

total

of

the

Last year's

high

business

for

I.P.C.,

1959,

like

1959

fourth-quar¬

all-time record,
$44,726,000.
Last
.

written

809,000—constituted
March

in Bismarck.

vol¬

prices rarely affect mutual

fund share

formerly active as an

V.:

figures, com¬
being re¬
ported throughout our industry,
prove once
again that declining
bined

was

history—$42,112,000—

reported

fund

*

branch office

management of Fred Hettick. Mr.

individual dealer
*

total

a

new

—

$12,-

March

bettering* the
$11,871,000.

of

be

at

graph.
•;

to

is

Bishop Branch

Hettick

y?*

issue

registration.

BISMARCK, N. D.—M. H. Bishop

Boeing Airplane and In¬
ternational
Telephone
&
Tele¬

25,000 shares of Swift & Co., ter'volume, an
25J100 shares of Aluminium
to
Ltd.,. amounted
10,000 shares

29

it

ning
stocks

General

Canada
the

tribution

were

.

com¬

1,818,147 shares

This

share from

dividend

*

$6,062,491

59

Check

holdings

$4
were

Dec. 31, 1959. Net profit

on

sale

$15.09

then,
at

managers

report

mon

Philadelphia 3, Pa.

of

numerous

$30.52

the

on

outstanding.

March

'

•

%,

value

from

stock

mon

sales totaling

$420,516
for the corresponding 1959 period.

company

also

Ask your investment dealer
for
or

the

after deducting
preferred
stock,
equal to $26.62 per share of

same

313,066 in March, 1959. Nelson also

Busi¬

28th

was

the

in

785—46%

marketplace and in ^institutional

cost
of
stocks
by stock prices in the The
purchased
industry moving faster or slower amounted to $5,436,944 and pro¬
than prices in
ceeds
from
stocks sold amounted
general.

Equity
common

in

assets,

period last
'/"l
i
year.
The fund also recorded the
American
best March in its 23-year history
reports net
with gross sales totaling $1,916,-

ball of

a

sales amounting to $4,-

over

398,450

has the No. 2 stock (up from third

They reflect not alone decisions to
buy and sell various stocks, but

be

lUlul

time

compilation.

result

cline

marily in

in the

year

equippers, which

prices.

Art

previous

for the first

appear

in¬

current

common

ap¬

the list of 10 largest
holdings at the end of

net

decline

a

252,000

764,422 and $31.12

adviser

com¬

have

Net

share.

of

(insurance companies i

dollars.

last decade with the
exceptions of
the electrical

a balanced

fund

least

industries

Co.,

of $7,187,947 for the three
months.

Delaware
Management Co., Inc., investment
President

tribution of two cents

automobile and
accessories, 3.9%;
railroads, 3.9%; drugs, 3.7%, and
electrical equipment, 3.5%.

*

.

$52,661,997,

were

quarter record, reports W. Linton
Nelson,

institutional

of

$6,987,463 in the first three

months of

a

remains that

for years, to

taled

be a sale
buy.

may
Anaconda is

an

The fact
ard

survey.

Continental

6.2%; non-fer¬
mining, 4.3%;

and

■>

General American Investors
Inc. reports that at March 31

■

stockholdings; financial
10.9%; utilities, including tele¬
phone companies, 10.3 %; steel,
rous

*"*' '»• #

»

portfolios

mon

6.9%;

•».»

the
31, 1959, William K.
Jacobs, Jr., president, announced. three months Avas $40,965. Net in¬
but, as The decrease since the end, of come from dividends and interest
previously noted, ups and downs 1959 is
for the period, after expenses and
equal to 1.9%.
(here it is the latter) are a factor
state
and
■;*
*
:!:
'
'
municipal taxes, was
to be considered along with port¬
The Energy Fund announced to¬ $246,540. Major portfolio changes
folio shifts.
The second-ranking
tal net assets have just passed the during the latest quarter included
group, largely bank and insurance
purchases of 2,000 shares of Inter¬
$10
million mark.
It said the
stocks, is less volatile, of course,
national Nickel
Co. of
Canada,
milestone was reached at the close
as far as price movement is con¬
Ltd. and 3,000 shares of Wyan¬
of business on April 4 when the
cerned.
The ratio here has risen
dotte
Chemicals
Corp. It sold
tabulation showed total net assets
from a low of 5.7% in 1950 to a
6,500 shares of American Natural
were $10,103,597. "In less than four
new
high of nearly 11% at the
Gas Co.
and a half years,
the fund has
end of last year.
stock

past decade have been substantial.

fund

'

from

They promise to be far

leading

or

March

on

at

com¬

31,

$43.25 per share on Dec. 31, 1959
$36,821,049 or $43.03 per share

of

whose

holdings were:
Oil, 11.8% of total value of

$42.41

and

figure at the close of

stantial in the decade

industries

of

dividend of five cents

the close of 1959.

The

assets

compared

of

in¬

had total net
$36,290,566
equal
to

Equitable Life cer¬
tainly appreciate, changes in the

rep¬

companies

17%

over

closed-end

a

u

assets

company,

new

'

the lowest ratio in these

common

issues in its $600,000,000 portfolio.
Wall Streeters would give a pretty
penny

constituted

oils

the holdings of these funds in 1951.

country's

Equitable Life Assurance Society

Name,

the

*

Fund,

vestment

Yesterday, Today and Tomorrow

Thursday, April 14, 1960

.

of Moore

Corporation, Ltd. Sales
Standard
Oil (New Jersey), 2,700 shares of
Texaco
and
2,218
shares
of
American Telephone & Telegraph.

FUNDS

MUTUAL

,

.

SIXTH

quarterly
DIVIDEND
4c

a.

share

from

net

investment income to share¬

holders of record April

1.1960
1960

,

payable
in

cash

or

28,

Mayv;,16,
stock

shareholder's option-- /:

at
r

v ••WALTER. L.MORGAN;
■";» V /
President "*
h April 13, 1960

Number 5942

Volume 191

.

.

The
Commercial and. Financial Chronicle

.

(1645)

The Coming Bull Market
In Insurance Stocks
Continued from page 3
and sustained
or extremely fast
cuch as during the last great cycle
1046-49 The betterment came so

have established in the
goods and
services market, would

off!

pay

From

investor's

standpoint

stocks have*

surance

in¬

current ap¬

a

increasing share

of

the

personal

auto insurance market.

True, most

insurance

would

have

companies

been

able

to

write

substantially higher, interest rates.

more

automobile

than they have been
writing without unbalancing their
underwriting books.
Most insur¬

life

of

vears—although there was profit¬
able underwriting
generally for
buying into a
the next several years.
Since the group which has been in a 5%
underwriting turn this time came year
bear
market
but
whose
only in the second half of 1958, on figures are now improving and
whose
dividends
will
be
any historical precedent
the un¬
increased,
derwriting improvement
would should appear alluring. And since
have nearly 2-3 years left to run. stocks,
like
other
commodities,
Without going overly into detail, move according to the laws of
the underwriting improvement is supply and demand—it would ap¬
traditionally brought about be¬ pear that the forces of demand
could be greatly augmented while
cause of higher rates, more selec¬
tive underwriting and
(particu¬ the supply is being contracted—
larly this time) lower costs, all and contracted because insurance
three of which serve to
widen stocks should now be in strong
the profit
margin.
There is a and knowledgeable hands, un¬
of course, because of the

time lag,

duration of insurance policies, one

that improvement
selective under¬
writing practices or lower costs

to five years, so

rates,

in

more

by no means felt immediately.
lag has always caused dis¬

are

likely

there

(4) The technical position of in¬
stocks is strong.
Many

surance

below;
August,

selling

are

in

reached
five and

their
1954,

half years

a

ago.

first

the

on

only be one
higher prices.

can

sharply

This

couragement in the past but has
always created
the opportunity
for the patient.
Once "in gear,"
the
underwriting improvement
has tended to run its course.

sell

to

rally.

And when greatly augmented de¬
mand
hits
diminished
supply

Answer the
Unless

—

and

answer—

let

now

allow

us

their piece.

to

are

a

no.

In¬

certain

ex¬

selling below their prices of in 50 years? Who can foresee a
January a year ago, before the great catastrophe?
The point is,
cold winter set in.
Discourage¬ however,
that
the
abnormal
ment has dogged the holders of weather conditions or
catastrophes

account have they been "cleaned
out" in face of their lack lustre

performance. Five
and
a
years is a long, long time.

half

The

"coup de grace" occurred just a
year ago after the underwriting
cycle turned for the better in the
second

stocks

half

of

1958.

Insurance

with the .better under¬

rose

writing figures.

Then, just

a year

ago, came the most severe winter
in 50

years, bringing in its train
heavy fire losses and dangerous

driving conditions.
The
under¬
writing figures in the first quar¬

ter

of

1959

reversed themselves
and were the worst
in the entire

history

of

American

insurance,

barring

catastrophe.
Insurance
stocks fell
heavily and completely
lost favor
during the bull market
ot

1959.

from

Their holders

suffered

a

psychological malaise and
their friends talked of
them
terms

oven
in

generally

the

reserved

dearly departed.

most
im

alas

poor

well!"

worthwhile
ally spring.

It

Yorick,

for
al¬

was

I knew

"the

did

this

the

and

rate

have followed suit.

Bureau

has

company
own

The National

announced

free

was

that

to

rating methods

any

adopt its
long as it

as

forwarded statistics to the Bureau.

Without going overly into detail,
greater flexibility has come back
into insurance pricing and that is

combat the methods of the direct
writers.
"Attack"
is
now
the
watchword

thing."

The

companies

many

"meeting
competi¬
plans—combining

new

billing, cash on the barrel
head, continuous policy and a re¬
duced

commission

have succeeded

business

from

Why?

differential
to

(often

15%)—

actually in taking

away

writers.

the

direct

Because the price

has

been

narrowed

point where personal solici¬

a

tation

TTj

counter

The

have

also

would be

changes

loss

and service,^more than

balance

ably but of course might be in¬
Such an interruption

opportunity for buy¬

in

than

tion."

that

terrupted.

an

to

regain flexibility in
making.
Other
companies

rates

it.

adopted

which

conditions.
are

six

months

makes ^changes ->in

sensitive

more

Companies

a

to

changing

Fundamental

at last coming to auto

insurance—and
since
auto
pre¬
ing rather than selling.
(2) Have the fundamentals of miums account for 40% of total
fire
insurance
casualty
volume,
nothing
really improved,
are
-

the

which

conditions

mediocre

during

ance

led

underwriting

the

past

substantially better?

to

the

perform¬

There

are

could be

"As

more

Maine

important.

so
goes the
Union" used to be the old saying.

five years
This is the "As

auto

goes,

insurance
underwriting" might well be said

of the problem.

nub

two facets:

Inflation

goes,

And

now.

with

so

goes

the

fundamental

changes that have been made
for inflation insurance companies during the past year, reduced ac¬
and the rating authorities are at quisition costs, greater flexibility
in pricing, new methods of doing
last
becoming
educated
to
its
business, possibility of less infla¬
perils. Admittedly this has taken
tion, probable reduced repair
time. But has it not taken time
and direct writer competition. As

for

the

nothing

public generally, to say
of a good many profes¬

investors?

sional

There is

a

con¬

campaign in fire to keep
up to current replace¬
ment values. Renewal notices sent
stant

costs for the smaller auto

the companies stress this
and in many instances sug¬

by

gest higher values. More reliance
is

models,

etc.—prospects for auto insurance
have

than

not
a

been

better

for

more

street during the next sev¬
years.
There can be catas¬
trophes.
Some of the auto plans,
granting heavy discounts to safe
way

eral

placed upon this method in fire
drivers etc., may prove to be ac¬
than upon higher rates. In ex¬
(5) The climate seems
right,
tended
coverage
(hurricane in¬ tuarially unsound. Sufficient ex¬
Snes?*r w.ise
and investmentperience has not yet been accu¬
Jt not Per
surance) deductables of $50-100
Jacobssen,
mulated.
But constructive things
have been adopted in many states
wr? lhe International Moneare stirring in insurance manage¬
who said that we have so that in any catastrophe the
ments and any momentary cessa¬
infiJf?
p?ak of the worldwide companies are not as likely to be tion of the underwriting improve¬
hit with a flood of small repair
ment will only serve to prolong
«?as he n°t recently
ficni? t
^ wou*d be very dif- losses, costly to adjust. In auto¬ the cyclical upturn, in our opin¬
mobile the principle of a trend
ion.
At this stage of the game,
the tt
creVlv,e the inflation in
tionc»
t
u?der Present condi- factor in rate making has been in¬ priced - as they are, fire and
troduced and accepted in prac¬
Procl'nim-S n°^uthe &eneral market
casualty stocks seem almost a
at
fg ihe end of inflation, tically every rating jurisdiction. "heads I win, tails you lose" prop¬
V

;

'

St

tL

?e

near or intermePowerfnS
re? Are there not
reasoned
2nomic and financial
and ,
S«'ft as foreign imports
further i fw-SUpply' that make
diate

able

than

n? ?u

end

helpful
who

am

goods
of

i

thpir

little

rWi

fnr°n n°W leSS prob"
.

J

many

years?

An

rent

set

•

n°i;.0nly in settling curalrerw^' t0r which premiums
rin?

en received, but in

reslrvlf3^ Clain?S for
up

reservpc

the fir*'

set not

reason

why insurance com¬

«

panies cannot learn to live with
'For growth stocks, during the
inflation just as the automo¬ bull market of the
past few years,
bile and steel and other manu¬ life insurance shares have been

and

sbort position
casualty

have learned

it is possible
have to live
time. It will
not be the first time a door has
been locked after the horse has
been

stolen!

Even

more

flation, insurance companies are
gradually adjusting themselves to

which

Since

companies




new

direct

methods

of

distribution.

Allstate and other
writers have written an

the

war

Hike
Rip
Van
Winkle.
Since July 1955, with few excep¬
acting

would

more.-But

the

sult

that

pear

to be in

life

be

*An address

are

ond

been

position

by Mr. Davis before Sec¬
Investment Forum for New

Annual

Boston

Savings Banks, sponsored by
Safe Deposit & Trust
Co., Bos¬

ton, Mass.

,

Halsey, Stuart & Co. Inc. is

re¬

would

-

Heads Deb. Offg

has

with the

stocks

Halsey, Stuart

in

once

correction

years

share¬

should

correction.

have

technical

days

ager of an

ap¬

which offered

strong technical
in the early
50's, before the public knew that
as

man¬

underwriting syndicate
on

April 13

an

issue

of

$40,000,000 The Mountain States
Telephone
and
Telegraph Co.
5%
life
stocks
debentures, due
existed. The reason: forty-year
April 1, 2000, at 102.279% and
the spectre of
greatly increased
accrued interest, to yield 4.87%.
Federal taxes on life insurance

position

they

as

companies

were

This

arose.

Award of the debentures

factor

new

ing and prolonged market
tion until

correc¬

101.51%.

recently.

Net proceeds from the sale of
the debentures will be used
by the

(2) It was very difficult to al¬
lay the fear of greatly increased
Federal

taxes. One

could

mind

that

was

advances

in¬

life

natural

was

have

been

increase
in

to

stride.

The

to

the

on

effect

gain

in

of

whole

the

The company is
engaged in fur¬
nishing communication services,
mainly local and toll telephone
service, in Arizona, Colorado,
Montana, New Mexico, Utah and
Wyoming, in Idaho south of the

60%
taxes

varies

company,

been the loss of

the

Federal

from

course.

has

worst

year's normal

one

Salmon

earnings;

while a num¬
ber of companies have taken the
increase

in

taxes

without

com¬

crued interest.

companies

take

overall in

company

But

able

life

parent

able, on or after April 1, 1965, at
optional redemption prices rang¬
ing from 105.27% to par, plus ac¬

it has become

ago,

the

The debentures will be redeem¬

and normal.

apparent that the

from

sions, additions and improvements
to the company's telephone
plant.

With the publication of the 1959
life
company
reports,
starting
several weeks

advances from

pany are used for general corpo¬
rate
purposes,
including exten¬

earnings
could be cut in half by
imposition
of the full 52% corporate tax. The
adoption of a "wait and see" at¬
titude

repay

organization, American
Telephone & Telegraph Co. These

be

not

factual until the event. There
also
the fear latent in the
vestor's

company to
the parent

could express

opinion—but it

an

was won

by the underwriters at competi¬
tive sale on April 12 on a bid of

inhibited buying and caused sell¬

River

and

in

El

Paso

County, Texas. Its subsidiary, Mal¬
heur Home Telephone
Co., fur¬

losing

nishes

such

service

in

Malheur

earnings momentum at all. Even County, Oregon. On Dec.
31, 1959,
more
important
to
investors -the company had 2,264,373 tele¬
should be the realization that the

impact

earnings

on

on

the

phones in service and its subsidi¬
ary had 6,125 telephones in serv¬

tax

last year was

ice. Other communication services

This

furnished include teletypewriter
exchange service and services and

is

its worst relatively.
many companies
change their reserve

because

elected

to

methods

which resulted in a facilities for private line
teletype¬
higher tax in 1959 but which will writer use, for the transmission of
radio and television
programs and

lower tax in subsequent
Furthermore there was in¬

mean

a

years.

sufficient

time

their

move

for

assets

to

companies
about

in

for other purposes.
For the year

such

had

full advantage
of the tax exemptions in the law
a

way

such

to take

as

acquiring

as

preferred
Even

and

late

as

annual

the

tax

stocks.

pany

the

of

was

debt

December, during

as

meeting

1959, the

operating

shareowners'

exempts,

common

total

company

revenues

of

$287,525,773 and net income of
$41,899,358. At Dec. 31, 1959, the

of

equity

in

the

$473,232,728;

com¬

funded

the

company was $140,000,000 and advances from A.T.&T.

Life

Insurance Association at the Wal¬

aggregated $67,600,000. At Dec. 31,

dorf in New

1954, these figures were $252,547,088, $80,000,000 and $9,825,000, re¬

the

to

York, it

writer

that

was

apparent

the

new

tax

spectively.

not generally understood.

was

the'companies

as

learn

to

live with the law and to take full

Iowa Inv. Bankers
Field Day

advantage of its opportunities, the
burden

of taxes will

come

down.

In

addition, premium rates will be
raised, just as other industries
DES MOINES, Iowa
selling prices
Investment
Bankers
to compensate for higher costs.

have advanced their

Life

of

There

rates.

mendous

furthermore

is

some

of

our

institutional

ing,
stocks

as

Field
on

tre¬

Day

in

Des

Thursday, June 9, 1960.

Wakonda Club will be the
site for the program as the Iowa
Association plays host to Invest¬

fast grow¬

growth ment Bankers

type

Anniversary
Moines, Iowa

The

leverage in their opera¬

tions. With

The Iowa

Association

will hold their Silver

are the prime
higher interest

companies

beneficiaries

—

Franklin and U. S. Life

and

Dealers

from

all

sections
of the nation.
Ap¬
selling at only 20 times last year's
proximately
150
members
and
earnings, with a stock such as guests are
expected to attend.
Lincoln National selling at only
Harold
Neu
of
Des

Moines,
Association,

-

15

times, with

of the others
available at 10-15 times earnings,
and
"9II
lines"
Travelers
and

President of the Iowa

Aetna Life at 9-10 times estimated

dinner

1960

earnings,

Moines

said

that

many

it

life

can

stocks

hardly
are

announced

will

be

over¬

hold

that
a

the

Club

Association

cocktail

reception*
on

party

at

and

the

Des

Wednesday

eve¬

ning preceding the Field Day.

priced. They should benefit from
booming families and from
the higher interest rates in the
years ahead. They would also be
the

With First Maine

Corp.

(Special to The Financial Chronicle)

beneficiaries if inflation is at bay PORTLAND, Maine — James A.
tions, they have been slumber¬ —at least for a while. An invest¬ Boyd has become connected with
ing. That is now four and three- ment in life insurance is essen¬ First Maine Corporation, 84 Ex¬
quarter years.
It is like June, tially one in protection plus an change Street.
1933, in the greatest bear market investment in bonds and mort¬
of

important than in¬

which

+1-ye already been
Is lnstance the loss

Ready to Catch Fire Again

the

inflation would be
msurance companies facturing companies
m a sense' Ush°rt" the to live with it. And
s<rf_vices market because that they may not
s,e.tlement of claims. A with it for a little

disposing /
loss

sound

are

•

henefieiaf nnf1 w?uld be Positively
have

just upon past osition.
It is hard
in today's
experience but are adjusted ac¬ market to find values more at¬
cording to the trend of loss cost tractive.
*
settlements. There is actually no
Rates

-

stocks

sound

a

But

underwriting progress of
companies may not be a one

the

and

law

decade.

The

insurance

fact

that

trend's

stride

mono¬

derwriters, for seven mid-western
states, practically equivalent to
leaving the Church.
Travelers

policy

conditions

gener¬

in

taken

almost

lithic Travelers resigned from the
National Bureau of Casualty Un¬

trend is definitely running favor¬

out

markets

be

can

it is out of such de-

bull

Pricing

direct

stocks

peaks tent "weather" stocks. Who could
nearly foretell, for example, that last
Most winter would have been the worst

In account after

spring

the

market

a

lasted for 4%

Last

unfortunately, is

answer,

Big

_

Flexibility in Insurance

rather

surance

the

New

(1)
Can the improvement in
underwriting be guaranteed? The

are

insurance stocks.

imagined.
But
now at hand.

Change is

highly
important.
Many
new
plans have been introduced to

Skeptics

the skeptics to speak

have

they

reasons.

Normally this market correction
might have lasted a year or two

the cycle, from low peal for the reasons cited above. have been slower to
change their
high point, endured only four In a market which may have operating methods than one
might
reached Its peak for several
years,
the
prospect of

two

are

(1) Following the rapid advance
1953-1955, life stocks clearly

needed

nuickly that
to

where

are

There

insurance

here again!

England

insurance executives

many

fire

stocks

now.

ance
companies do not wish to
have too much auto business,
they
prefer a balance of all.
For that

reason

catch

patient
happy

holders,

are ready
again.
For the an¬
swer—why—let us examine why

to

the

For

We beiieve their stocks

not

29

all

1929.

time,
And

so-called

starting in October,
1933, members of the

Wall

Street

Quarter

Century Club, will know, was a
good time to buy stocks. The life
companies are doing 50% more
business than five years ago at

Form Growth Plans

gages. Unsettlement in the stock
market and renewed uncertainty

could lead
The

stocks
all

bull

to

higher life sales.

market

therefore

in

should

insurance

embrace

phases, fire, casualty and life.

,

Growth

"Plans," Inc.

formed

with

offices

has
at

405

been
Lex¬

ington Ave., New York City, to
engage
in a securities business.
Angelo Leto is a principal.

Financial Chronicle

The Commercial and

30

tion is relatively

Significance of the Revised
Industrial Production Index
Continued from page 9
tion was indicated
and

in the Winter

Spring of 1955-56 when the

ending of the six-month Westinghouse" strike resulted in a tem¬

increase
in
output of
appliances, while output of
furniture
was
showing
some

porary

decline.

in the
total
measure for consumer goods. This
is a combination of home furnish¬
Of

broader

revised

.

.

significance
is

index

new

a

The revised

well maintained.

index shows that the

have

postwar cycles in output
capital
equipment
had
a
declining phase of

about

a

overall

business

of

year

and a quarter. Out¬

put in the business equipment in¬
manufactures accounted for a sub¬ dustries has tended to level off
stantial amount of the recent gen¬ or decline some time before the
eral revision in the total index. general
decrease
in industrial
revision

The

in

these

industries production.

partly the difficulty of
maintaining adequate current re¬
reflected

small firms
producing a variety of products
like apparel and prepared foods
and
the
rapid growth of new
products in the chemical and
plastics industries.

ports

the

for

many

months'
the total

periods of decline in
during the three postwar
recessions were a weighted aver¬
index

the shorter declines for
consumer goods, which have more
than twice the aggregate impor¬
tance
of business equipment
in
of

age

a

discussing

In

and

countries.
1959

period

the

For

revised

the

from 1947 to
industrial pro¬

duction index showed an

1953

rate

average

faster from

was

since that time

than

4.1%.

of

increase

of

rate

annual
The

category, represents equip¬

industrial

Index Sheds New

the

revised

see

the

index

Light

we

can

is

This

to

important

point

national
cyclical production movements as changes in retail trade and other
industrial
they relate to changes in inven¬ economic developments. Also,
an

on

basis

better

gauging

for

output

for

composition of industrial

either

finished goods

producing a turbine, and
seasonal move¬
or
for
residential
construction. some of the inventories are final
ments, cyclical changes in busi¬
More than half of the consumer
products such as home refrigera¬
ness are generally not predictable.
total covers such staples as food, tors
held
by manufacturers or
Moreover, we may be better off
fuel, and newspapers which gen¬ distributors.
V.;-,;
not
knowing in advance when
erally
expand
steadily
upward
Changes in business inventories
business cycle turning points are
with
population. Population of refrigerators, for example, oc¬
in
the
immediate
offing partly
growth has been about 1.7% per cur when the current volume of
because
some
degree of uncer¬
year in the postwar period.
With their output is higher or lower
tainty about the future is essen¬ generally full employment and
than the current rate at which
tial to a free market economy.
rising incomes, consumption
of refrigerators are
being sold at re¬
these and most other
consumer
tail plus or minus changes in for¬
Shortness of Postwar Recessions
goods has been expanding at a
eign trade.
This is the familiar
The revised index, we believe,
rate of 2% or more per capita.
part of the inventory cycle. The
has
considerably improved our
Periodically, however, a con¬ less familiar part reflects changes
historical knowledge of the three
gestion develops in the economy in business stocks or purchased
postwar cyclical downturns and
which may reflect a number of materials
and
goods in- process,
recoveries in output. During each
different
influences.
Prominent and it is this part which shows
of these recessions the period of
among these is the tendency to up in the revised index as a slow¬
decline
in industrial
production excessive
expansion in periods of down or pickup in output of ma¬
lasted
about
eight months; the business boom. With demand in¬
terials relative to final products,
first one was from October, 1948,
flated by the bright promise and
•v Recently there has been a very
to June,
1949, the second from credit of tomorrow, retail prices
dramatic illustration of how im¬
July, 1953 to March, 1954, and the rise and limit increases in real
portant such changes can be in
third from August, 1957 to April,
consumer takings.
Inventories ac¬ inventories of materials because
In

sumer

contrast

use

to

1958.

cumulate

and

as

after

a

time

used

in

busi¬

57

as

retail prices advanced

followed

There

so.

or

of

output

in

goods that
Spring of 1958,

consumer

until

lasted

by 6%

drop

a

the

the

other

two

also
that

by

probably

income

the

reflected

insolvencies

financial

level

reached

earlier.

two

years

dustrial
or

commercial machinery
trucks, knows that cycles

or

motor,

are

much

longer and deeper for
.Upward revision in the pro¬ business
equipment than for
duction indexes for nondurable household




items where consump¬

the

longer run process of eco¬
growth. As was indicated

nomic
at

the

U.

S.

which

outset

of

this

growth rate is
we need more

paper,

the

of

the

U.

despite

cline

the U. S.

index

growth

douhi*

s

total

the

also

faster

that

growth

activity

rate

Florid

in

during

the

reces"

national

sions in 1953-54 and
In

Thl

total

indicates

off and showed
some de

1957-58.

closing I would like to leave

the

following

questions:

If

or

when

Florida's

industrial growth

slows

down

nearer

rate,

will

to

the

production

ments in Florida become
as
those
for
the

U

More

tuations

s

readjust'
as severe

country

whole?

as

a

generally, will fluc¬
the country
become

for

larger, or will the increasing im¬
portance of consumer goods, pros¬
pects of

stable U. S. prices
of pensions and
institutional developments

tend

growth

to

trial
*

more

the

and

other

stabilize

national

indus¬

activity?

An address

by Mr. Gehman before the
Florida, Miami

Economic Society of South
Florida.

'

Chock Full O'Nuts
Stock Offered
A

secondary

shares

of

offering

of

made

:

>

126,000

stock

common

corporation

of

this

April 12
underwriting group headed
by F. Eberstadt & Co. The stock
was priced at $45 per share.
by

was

on

an

medical

readjustments were more
recession. This

research building on the
of The College of Physi¬
cians and Surgeons. Net proceeds

limited during the

of

partly because restraints on
excessive
demands
during - the

will be received by Columbia,,

was

previous expansionary period had
restrained
speculative
commit¬
ments and partly because of the
effects of various built-in stabili¬
zers

in the economy.

the

While

showed

a

U.

-

^

'

total

S.

€

•

■

index

growth rate of 4.1% for

the period from 1947 to
may

:

1959, this

be somewhat higher or lower

for

Florida

pansion

shows

which

exceeded the U.

a

rate

of

ex¬

has

considerably
S. total, especially

subject on during the past six years. Over
light and less the whole period since 1947 the
a

1%

campus

•

vanced

about

Florida

and

was

ad¬

for

including Florida. Industrial nrn
duction in Florida
accounts iw

fact

even

the

rate

last Summer output was
12% greater than at the previous:
William
Black,
founder
and
high level two years earlier and in President of Chock Full O'Nuts,
January output will probably be recently gave this stock to Colum¬
about 15% greater.
bia University as a contribution
The strength of this
recovery toward
the
construction
of
a
but

of
involuntary reasons.
Here I than
prospects
over
a
longer
sharper nessmen find their capacity to >
refer to last year's work stoppages period. In any event the rate of
though produce is larger than justified by
which cut steel output to 15% of growth has been much less than
the duration of the decline was demand and they cut back their
capacity.
Steel
capacity
has a comparable figure for the State
the same. The greater decline re¬ orders for equipment as well as
grown considerably over the post¬ of Florida.
flected two main
developments. for merchandise to carry in in¬
war period, and during the strike
Before presenting that figure I
One was that consumer demand ventory. If this paper were longer
U. S. exports of steel were cut would like to
explain that in order
could
examine
this
for autos dropped by one-fourth we
process
to
the
bone
while
imports in¬ to improve monthly measurements
for the first serious decline in the further, noting, for example, how
creased further, so that the do¬ for the FRB index we are
seeking
postwar period. The second de¬ differently broad types of con¬
mestic supply of steel was greater the
cooperation of the country's
velopment
was
that
inventory sumer goods fare during read¬
than the 15% figure might sug¬
major electric utility companies to
liquidation in the 1957-58 period justment periods—including home
gest.
Even so, for a period of report
their
monthly
sales
of
was
at a more rapid rate both goods and apparel, consumer sta¬
nearly
four
months
the
economy
power to industrial establishments
here and abroad than in the ear¬ ples, and automotive products.
depended
in
large
part
on
the
following a national pattern of
One
of
the
main
facts
lier recessions.
that
Partly this may
consumption of steel out of in¬ classification. It is expected, also,
have reflected the fact that the stands out in the cycles is that
ventories.
that these electric power data will
latest recession was more widely the curtailments in total output
By November the auto industry be useful for other purposes in¬
have
been
advertised than
the
others, re¬ of consumer goods
had depleted its steel inventories cluding regional growth studies.
sulting in an excessive amount of shorter and less severe than the
declines in total industrial pro¬ and assemblies were cut in half. We are glad to report that there
inventory liquidation.
duction. This is because there is With output of primary metals re¬ has been a ready willingness to
Some of this accelerated liqui¬
on
the part
of the
usually no inventory liquidation duced by
three - fifths by
the cooperate
dation grew out of the concern
affecting output of stable items, strikes, total production of all in¬ Florida utility companies.
that the recession beginning in
while
the
dustrial
Some of those reports are al¬
materials
declined
inventory liquidation
by
late 1957 was going to be the big
period for other consumer goods over 10% last summer.
Except ready coming into the Atlanta
one
that had been predicted for
largely relates to one season's mainly for the November drop in Federal Reserve Bank but it is
some
time, because of the view
output.
For
some
items
like auto assemblies, total output of still too early to use them for my
that the nation's productive capac¬
clothing there are two or three final
products
was
maintained calculations today. For this pur¬
ity was being greatly overbuilt. seasons a
year, while autos and
during the strike, partly by using pose we have developed an ex¬
Recovery, however, developed
appliances have a model period up inventories. This is similar to perimental measure of industrial
more promptly than in either of
of 10 to 12 months.
what happened during the busi¬ production for the State of Flbrida
the other two recessions, and, for
In each of the general business ness
readjustments
in
1957-58, to compare with the total U. S.
a time (until the steel strike last
recovery
periods, production of 1953-54, and 1948-49.
In those index. The Florida figures are
summer) the recovery was at a
consumer goods turned
up sooner
periods, though, output of final experimental because we have
more rapid pace than before. Con¬
than other measures. In 1949 the products was also reduced in an calculated
output
of
manufac¬
trary also to earlier interpreta¬
upturn in consumer goods came attempt to liquidate inventories tured products by using national
tions, the strength of the latest in the
Spring, while output of of those products as well as mate¬ ratios on output per unit of elec¬
recovery could not be attributed
equipment and materials contin¬ rials and to adjust output of tric power consumed by industry
solely to inventory building in ued to
decline to the latter part
equipment to reduce business de¬ compared with similar ratios on
prospect of a steel strike. One of of the
year.
In 1953, the decline mands.
output per factory employee and
the broadest advances during the
came to an end in December and
per dollar of value added.
The
postwar period occurred in tex¬
Index
Sheds Light on Longer-Run Florida
output
turned
up
in
index
January,
includes
electric
tiles, chemicals, and other non¬ while in 1958 there was
a lead of
Prospects
utility output, but not mining,
durable manufactures
during 1958 only a month or two.
Growth developments—The re¬ which in Florida is too small to
and 1959.
Total output of these
Anyone who is in the business vised index is of interest also be¬ affect these figures.
goods has been about 12% higher
of manufacturing or
This industrial
selling in¬ cause of the light that it sheds on
since last summer than
activity index

The latest recession

than

4%

mainly

on

better

the

industrial

'53 on
defense outlays and production.
;
Considering the more basic con¬
sumer
goods sector of the econ¬
omy, the revision shows that the
average rate of growth in output
has been about as high since 1953
as it was before.
The increase has
tended to be between 3M> and 4%1950

during

War

rean

average rate of industrial
for Florida has been
about

leveled

business and
recessions
as
well as
government use
(including de¬
booms and attempt to reach some
tories of industrial commodities. these results suggest the existence
fense)
and the remaining new
conclusions.
Some
of these commodities are of strong physical and
institu¬
major group is for materials. This
A
major consideration in re¬ purchased from other manufac¬ tional forces making for under¬
materials
group
includes
steel,
turers such as the fabrics held by
viewing
these
cycles
is
that
on
the
lumber,
chemicals,
and
other
lying growth developments in the
materials used to produce final average about two-thirds of total an apparel manufacturer. Some are economy. For example, there was
industrial production at all stages goods held in the process of pro¬
a distinct slowing dowri in the rise
products
and
for
construction
is ultimately for individual con¬ duction such as the copper wire
in consumer buying during 1956purposes.
ment

Thursday, April 14, I960

1947 to

of the impact of the Ko¬

because

recapitulate, the eight

To

political character both
domestic
growth
in. comparing it with other
of

heat

production,
and
the
much longer declines in output per year.
Moreover, marked per
ings with series for automotive
Recessions
of equipment — plus declines in
capita growth has been broadly
products, clothing, manufactured
It was mentioned
earlier that output of steel and other major evident among various
major,
foods, residential electricity, and
the declining phase in production materials
used
in making con¬
various other items purchased by
groups of consumer goods includ¬
sumer
goods and equipment. Ma¬ ing
consumers.
This new category for during each of the postwar reces¬
automotive
products
and
sions lasted eight months.
Why terials constitute about one-half household goods as well as ap¬
monthly output of consumer goods
was
this so?
We cannot answer of industrial production and they
is of special importance in ob¬
parel, fuel, manufactured foods,
this question with full assurance are especially strategic in inven¬
and other nondurable goods.
serving cyclical and growth de¬
of the facts, but with the aid of tory readjustments.
f
These results should give us a
velopments.
The
second
new
broad

.

(1646)

the

The

sale

of

these

corporation

chain

of

29

securities

operates

counter-service

a

res¬

taurants located principally in the

Borough

of Manhattan in New
City. On March 30, the com¬
pany opened a new restaurant in
Manhattan. During the remainder

York

of

1960,

will

open four more
restaurants
and
en¬

it

Manhattan

an existing one. In this op¬
eration, the company specializes
in serving a limited menu of qual¬

large

ity food in clean surroundings at
low

prices.

A

■

.

division

second

produces

cern

a

of

•

the

con¬

brand of premium

priced, all-method grind, vacuum
packed coffee under the "Chock
O'Nuts"

Full

label.

addition

In

to

the

New

York

the coffee is
also
distributed; in
marketing
areas
in
up-state
New
York,
Maine, Connecticut, Rhode Island,
Massachusetts,
Pennsylvania,
Maryland, Virginia, Ohio, Michi¬
gan and in Washington, D. C., and
Toronto and Windsor, Canada.

metropolitan

For the

area,

six months ended Jan¬

1960, net sales of both
divisions were $14,591,194 and net
income
was
$944,837, compared
31,

uary

of

with net sales

$13,224,513 and

$710,595 for the like
period of 1958. Total sales for the
year ended July 31, 1959 equaled
$26,342,172 and net income was
$1,566,219 equivalent to $1.96 per
net income of

share.

-

DuPont Branch in
HONOLULU, Hawaii

Hawaii

—Francis I.

expanded its
of brokerage
offices to 74 with the opening o
an
office in Hawaii, at 84 Mer¬
chant Street, Honolulu, it was an¬
du

Pont

&

nationwide

Co.

nounced by A.

ior

has

network

Partner.

Rhett du Pont, Sen¬
Joseph W. Howei

is Resident Manager.

Marache, Dofflemyre
(Special to The Financial

LOS ANGELES,
Vollmer

has

with Marache,
210 West

Adds

Chronicle)

Calif.

become

Geprge
afflliar

—

Dofflemyre & lo,

Seventh St.,

the Pacific Coast

members o

Stock

Exchange

Number 5942

191

Volume

.

.

The Commercial and Financial Chronicle

.

a

bank and insurance
stocks
LEO

BY

This Week

—

I.

recent

(1647)

contest, in which

proxy

the stockholders of the $58 million

Managed Funds of St. Louis, Mo.,
approved a Channing slate of of¬
ficers and directors. King Merritt
&
Company, Inc., a subsidiary,

BURRINGTON

Distant

SellhW to

Is "One Package"
With institutions at hand to tie Creek, Mich., Channing will
the Family Security cover "insurable" risks, life is all offer extensive facilities for the

Market?
basic human

The

desire for secu¬

easier.

Life

will

insurance

newest

in. family
and
continue
to
cover
the : risk
of business economic planning. These
premature death, and credit life facilities will provide a balance

loss of life, property and
nnPvTavings which underlies the insurance in particular has berket for insurance and financome a fast growing field, with
n-ai ^mrmanies is creating more the prevalence of instalment buythe
of
lives
blnhenated descriptions of oper- ing» for insuring ^
nf
rity from

1

unrl

n-mnpftv

Ac

u

debtors.

Life

afffliJ «sk of inflation and

fire-casualty label became face the risk of recession, thus the
and distinguished two are compensating. The cirmm non-multiple line businesses,
cumstance has given rise to the
The insurance field has been witone. package - approach to help
rtpssina' for several years the deachieve healthy family 1 security
velooment of fire-casualty-life af- f™m risks.
Investment company
filiations or "all lines" companies.
or mutual fund share ownership
„tpd the

rwatinn

on

1?

options againsi
against
tive actions

status

"threats
to
inreais 10

s

are

quo

?

.

a

in„s

,

t—

Protection agamstfmancial loss,

.

|

professional

investment management.

v

! regulating variable annuity sales
to the Securities & Exchange Commission by ruling
the variable
annuity contract as more in the
investment

an

than

insurance

an

year

ing

rules

variable

companies.
While

proposals

sale of such
in

State

to

allow

annuities

boe

the

q

.....

basic problem.

same

are

Concerns

www.

hit upon the best
available
to
satisfy the

thirsty market

for

security. BeVOnH
yond a haco
base laxrckT
level, insecurity calls
forth enterprise.
Nonetheless, the
goal for enterprise is to achieve
further security. The
balancing of
3

risks is the financial
game of

security is

not obtained

Fund's

contribution,

stabilization

but

only

For the Fund has also

tended

technical

a

ex¬

assistance,

Federal

Life

and

Casualty

programs—as

re¬

a

sult of which further funds have
been obtained from a variety of

Company; Riverside Insurance sources.
Company of America and Secured
Insurance Company comprise the Growing Realization of Monetary
Stability's Importance
insurance complex. Federal Life
It is always dangerous to exag¬
jn 1959 had writings of new life
insurance of over $102 million, gerate and be complacent about
bringing life insurance in force to the degree of improvement that
*

that

require Fund approval,
in response to requests for
financial assistance.
The

is the most spectacular part of the

nf mnbmi

in the U. S.
nth^r

would also be

mize what

nrtfnni7oHnnc

Companies issued a revision of

;

;

•

.

guiding principles deploring nega- TT
T>
,
WW
tive sellmS and affirmed both life iiarVeV ijOUt W KS.
insurance
funds as

companies and mutual
contributing part of an

^

^

n

SfOPk OffPTPd

WlltJItJU

Walter

R

Blaha

&

Inc

Co

mistake to mini¬

a

has

been

of

success

center

the

Fund,

as

a

for

monetary cooperation,
always
depend
upon
the

will

maintenance of close contact with
member countries.

Such

contact

is of importance not only in times
of tension and crisis, but also in
periods of general monetary sta¬
bility—for even then problems of
monetary management may well

arise.

These

tricate

coordinated

often of

are

nature,

and

may

action

by

a

in¬

an

require
number

of countries.

While the Fund's

regular

con¬

achieved. In

life;
by avoid¬

ing risk.

°ffefd T'000
^r®?dy offerlg neriodic
I'w"* PaI'Af
c?mmTon f
chases of share^ThuTthe lite °f HarY7o £
£
' Inc' at a
and mutual fund field! PrlC6 °f $2'25 P6r Share'
'
workine toward the

same

goal

are working toward tne same goal.
Dual licensing-for salesmen to
sell both mutuarfhnds and insurout

i^motf!tatlff
in
states'in

w

The eomPany is engaged in the

fime

time.

' BtoS
fven

H ^fed
at Aloha, an inand suburban area ap-

dustnal

^ufirOTommS'beertefal- Proximately t?,n tTilel aouthwest

anauAmong
the °f downtown Portland' Oregon,
izecl m several states. A.mo g.tn
One of the principal purposes of
^d^fV^ * wS"
leacunS
j.

sponsors

au «Pes
Nationwide
plan

a

fit

which

Corn

the marketing

of Investment trust shares through

insuSce

itV?orce
XOrCG

countries, it became clear at

an

In other countries where

the current underwriting is to fl¬
nance establishment of a second

boat manufacturing plant at Knoxville- in
Tenn'> orcrkiifVioootovn
at ?ome otherTTnifo^
1<?ca_
tion in ■ the ■ southeastern United

of these

positions.

As restrictions

have gradually been reduced, the

and the authorities in these

coun¬

sideration of the general economic

tries

much

and

can

count

now

popular

their efforts to

on

support

for

resist inflationary

pressures,
even
when
rather
harsh measures have to be taken.

There

is also a growing convic¬
evidenced by statements at
the last Annual Meeting of the

tion,

provide a foundation for us to
proceed further, and to apply our
minds to the problems that re¬
main

well

as

arise in this

Since

I

as

those

will

that

ever-changing world.

last

spoke to you, no
completed the for¬
malities required to join the Fund.
country

has

At the Annual Meeting last Sep¬

emphasis in the consultations has
shifted

decisively to

more

financial situation.

these consultations

advice

and

with

Through

the

been able to contribute
a

con¬

a

Fund

has

experience
of

minimum

publicity, and with the individual
members' knowledge that nothing
could

be

said

their

having

make

their

opportunity
known

have^hem considered..
Stabilization
.

—

'''v.-

without

done

or

an

views

Programs

to

and

to
-

.

During

1959

■

I may perhaps say a few words
the stabilization programs

about

which had

already been put into

effect when I appeared before you

In 1959, France had

a

year ago.

a

balance of payments surplus of

$1 billion

over

and

was

on

current account,

able to add substantially

to its monetary reserves, and at
-fir\Y}
fVia
tember, however, the Board of
the same time to repay a consid¬
adopted
resolutions
States, for the intended purpose of Governors
erable part of its foreign debts.
vanced for entrance
Until legal
obvia1j
freight rates
the agreeing the terms upon which Notable
progress has also been
restrictions are cleared, the sale
rf)1TlDanv
Pan
comnete in eastern Portugal and Laos be admitted to
of UlSUraPCc a«nts
Sev01
ageillS. 0"V

other

eral

,

o

ffrmms

are

,§r°ufis

are

well
.

ad-

iQrtoi

£ t£at

of

will

funds

and

insurance

life

mutual

separated,

.be

even

though sold by the same salesman.
Many salesmen have been selling
both

for

some

time.

membership;

Invasion

into

the

life

field

I

and

understand

that the necessary domestic meas¬

Coast.

to

give effect to these reso¬
lutions are now being taken in the
two countries.
Moreover, during
the year approaches have been
ures

With Hayden, Stone
(Special to The Financial Chronicle)

national and grindlays

ber

prices have not been so stable,
people have begun to feel that
they have had enough of inflation,

greater

Long Island City, N. Y., on April 4

nur-

rencies.

of

£al ™d*

at work to

means

and

1956, amounts to the
equivalent of over $2 billion. This

early stage that a restrictive
Other
organizations
are
ex> At
present a co-existence in pected to enter the insurance-mu- quite a number of countries the system could be properly under¬
increase in the cost of living has stood only against the background
family security reigns. Just this tual fund field. The "one pack- been moderate for well
of the general economic and fi¬
over
a
month The National Association of age» selling to the family security
year; this has helped to strength¬ nancial position of
the country
Life Underwriters and the Na- market may not be a too distant en
the confidence of the general concerned, and attention has been
fional Association of Investment achievement.
■"'
public in the value of their cur¬ increasingly devoted to the study

down

legislative

battles, the
managements of mutual funds are
nnnivmo
applying a different approach to
the

ters

at the end of

manufacture of fiberglas boats, Board of Governors of the Fqnd,
swimming pools, and other plastic that monetary stability is the only
for
sustained
annuity
consumer and industrial products. -reliable*7' basis
t-ance is a possibler drawback, but The company's manufacturing growth. These are real gains; they

purchase. Earlier this
the SEC spelled out operatfor

Fund,

useful whenever it has
been necessary to act promptly in
connection with the various mat¬

.

«linrAmA

of

the

of

par¬

ticularly

since the difficulties became acute

part.

,

;;

changingRvalue of over_all financiai security packmoney, called fort
age. Akin to the variable annuity
Court hasTurned over the task of js systematic investing
and mu-

nature

by

understanding

an

problems has been

+

the

including

to

granted

that

Pr°vi(?es an effective means of $455.5 million.
and

--tinn

further integration
step
the sale of mutual funds.
Once an organized and efficient
distribution force is reaching the
public in effectively servicing securitv needs, additional savings
beyond balanced insurance needs
held by that public logically could
be tapped for equity investment.
off

ward

countries

and

members'

By volume of in- has been attained, since new and sultations have had as their first
Pa^cipating in the economy s surance in force, Federal is in the perhaps equally difficult prob¬ objective the examination of the
the
^. through the benefits of top 10% of over 1,400 companies lems are bound to arise; but it restrictions maintained by mem¬
me §F°
dlversification

of
any
serious
the horizon
nega-

characteristic

assistance

member

between life insurance protection,
fixed dollar saving, and owner-

Company;' Wolverine" Insurance

mutual funds

widespread

•

concept

financial

and
ship of equities through the media has
helped in the preparation of
of mutual funds,

its

has

insurance
mSl

With Inflation Subsided

Channing mu¬
tual funds at retail through offices Continued from page 1
has been able to make its contri¬
around the globe.
bution to these developments. The
With
its
acquisition
of
the

Insurance Stocks

the

Proper Solution to Problems

sells shares of the

"Tower Insurance Group" of Batmv

31

is

made under the stabilization pro¬

in Argentina, Bolivia, Chile,
Colombia, Haiti, Honduras, Mex¬
ico, Paraguay, Peru and Turkey.

grams

The

Fund

has

maintained

contact with these

close

countries, and

in¬
CHICAGO) HI.—Nicholas M. Kel¬ received from several other coun¬
all sides.
volved
the
conclusion
of
new
ler has been added to the staff of tries
indicating their interest in
progress of Sears Roebuck s Allstand - by arrangements, which
Ltd.
jjaydeilj stone & Co., 141 West eventual membership in the Fund.
and Grindlays Bank
state Insurance subsidiary is we 1
have
contained
Ltd.
provisions
for
jac^son Boulevard,
With the emergence of many in¬
Head Office:
^;-" known.
Montgomery Ward
has
such further measures as have
26
dependent
countries
in
Africa,
it
BISHOPSGATE, LONDON, E.C.3
been weighing a move into the inbeen needed to continue the im¬
o
0.
A JJ
i
C* CC
is expected that before long the
London Branches
surance field. Finance companies,
IlentZ Adds to dtart
Fund membership will be appre¬ provement.
54
As is clear from the list of coun¬
PARLIAMENT STREET, S.W.l
such as Financial General, C.I. T.
(special to the financial chronicle)
ciably increased.
We shall cer¬
13 ST.
Financial and Commercial Credit CHICAGO, 111.—Arthur H.. Mann
tries that I have just given, the
JAMES'S SQUARE, S.W.l
tainly welcome these countries as
Fund's
activities in support
have
of
TrusUe Depis.; 13
growing
life subsidiaries, has become affiliated with H.
St> james»s Sq.; and at
partners in the joint enterprise
stabilization programs have been
Also
long established insurance Hentz & Co., 141 West Jackson for
monetary cooperation which
mm ' s! "n,Nair0bi!
Ins'
Dept*:
54
St.; Travel
particularly marked in Latin
companies are expanding through Boulevard,
Dept.: 13 St. James's Sq.
the Fund constitutes.
*
America, both among the North¬
acquisitions. Note well the acqui¬
I should mention here that the
BankVCA^ut!Ler7Government
in:
aden, kenya,
ern
UGANDA, zanzibar & somaliland
group
of countries and in
sitions of such insurance compaThree With Binder
Fund has already on occasions ex¬
South America, and the progress
protectorate
nies as Transamerica and Life &
bank limited
Amalgamating National Bank of India

more

often

than not this has

from

advancing

1

iNmA

Branches in:

r,...

tas^, ceylon,
ADEn

Casualty
burma, kenya,

S?ta> zanzibar,

n0rthprm
HERN

uganda,

southern

Co.

of Ten,

4m^and protectorate,

and

Insurance

npcqpp

Channing Corp, Moves in

rhodesia

Just

last

week

Channing Cor-

poration, with subsidiaries supervising six U. S. and Canadian mutual funds, announced it is enter-

THE HANOVER BANK
NEW YORK
Bulletin

on

Request

LJRD.BISSEU. 8 MEED®
Member8 ^CW York Stock E"hanf®
BRftAntlneriCai1 St°Ck Exohan*«
^
NEW T0RK 5, N. Y.

n!|!Pr?°,nr!1 BArol&y

Bell

Teletype

^Specialists

1-8500

NY l-t248'49

|n Bank

Stocka



field.
It has
majority stock interest in the
Wolverine-Federal
Insurance
Companies
of Battle
Creek, Michigan.
The Channing
organization supervises about $750
million in investments through its
investment counsel subsidiary, Van
Strum & Towne, Inc. Supervised
accounts include several insurance
companies' investment
POr«^
the
writer has
been associated
mg

the

acquired

insurance

the

technical

tended

assistance

to

a

that has been made is all the more

,

number of countries, at their own
remarkable in view of the fact
LOS ANGELES, Calif.— Gene J.
Algoet, Oliver C. Hoffman and request j even before they have that on the whole world prices of
become members of the Fund.
In
the raw materials produced by
Nicholas P. Lewnes have joined
this and in other ways, the Fund's
these countries did not improve
the staff of Binder & Co., Inc.
activities in the field of technical
during 1959, except for copper and
542 South Spring St.

have

assistance

J. A.

Hogle Adds
0

(Special to the financial chronicle)
LOS ANGELES, Calif. — Herbert
Le Vine is now affiliated with
J. A. Hogle & Co., 507 West Sixth
St. He was previously with Califorma Investors.

Two With Taiyo
(special to the financial chronicle)

steady

These

56 of the Fund's members.

consultations
held

in

the

providing
contact

#

shown

growth over recent years.
This
assistance is in part given in the
course
of the regular consulta¬
tions which have been held with

Fund
many

an

almost

are

member

always
countries,

occasion for personal

between

officials

officials

from

departments

and

and

of
a

few other metals.

This progress

termined

efforts

made

by

these

countries, aided by financial and

advisory assistance from the Fund,
and supplemented by
resources
obtained from U. S. Government

agencies and U. S. and European
commercial banks.

the

great

institu¬

tions in the member countries.

a

has been the result of the very de¬

Among the Northern group, the
continued to play an im¬

Fund

portant role in the implementa¬
tion of stabilization programs dur¬

Experience has shown that the
LOS ANGELES, Calif.-Ryuichi
It contributed to the
and
knowledge
thus ing 1959.
-Kawamura and Nobutaka L. Kiriu contacts
with Van Strum & Towne for sev- haye joined the staff of Taiyo Se- gained are of the greatest value strengthening of the position of
the Mexican peso, and gave finaneral years.
Much publicity has curities Co., 208 South San Pedro to the Fund in its general task of
Continued on page 32
promoting
monetary
cooperation,
been given Channing Corp. from Street.

32

those

Proper Solution to Problems
With Inflation Subsided
Continued from

where

a

stabilization program was

is

countries of
however, where

the

among

have

They

have

inflationary

of

elimination

virtual

in a

resulted

pres¬

and in a greater freedom of
trade
and payments which, to¬

sures,

in December.

introduced
It

Republic—

Dominican

the

by the Spanish authorities
had a considerable effect.

taken

31

page

cial assistance to Haiti, Honduras,
and

America,

to
create
credit
directly, since
amounts drawn by one country

partly the result of thje long his¬
tory of inflation in these countries
associated with complex multiple
practices, and partly the
problems. The

result of structural

importance of stability, however,
in enabling the
best use to be
of

made

efforts
the

the

and

the

value

of

raising

'

.

real

>■:);- ■';V"

'

South

In

has

had

with

the

America,

stand-by

Fund

arrangements

six

countries, namely, Ar¬
gentina, Bolivia, Chile, Colombia,
Paraguay,
and
Peru.
The
im¬
provement in the payments posi¬
tion

of

has

of

most

countries

these

For

remarkable.

been

in¬

stance, the net gold and convert¬
ible foreign exchange reserves of
Argentina increased by $77 mil¬
lion in 1959, and by a further $40
million in the first two months of

this year.
reserves

Chile's net international
increased by $36 million

in 1959, Colombia's by $88 million,
and Peru's by $17

improvement
1960.

million, and this
continued

has

into

The

strengthening of re¬
serves is mainly to be
attributed
to the adoption of proper domestic
financial policies; during the last
six months, the rise in domestic
prices in most of these countries
has

been

virtually halted or at a
very
reduced rate.
Throughout
1959, the rate of exchange has
been stable in Bolivia,
Chile, Co¬
lombia, and Paraguay, and in Ar¬
gentina and Peru, since the mid¬
dle

1959.

of

As the domestic financial posi¬
tion of these countries improves,

internal production should in¬

so

and

crease,

ated

for

a

better climate

sound

cre¬

development.

I

do not wish to convey the impres¬
sion that the problems of Latin

America
think

that

have

these

termined

an

applying
increasingly de¬

fashion

are

the

to

task

of

inflation, simplifying
exchange systems, and de¬
veloping their economies under a

system of freely convertible

cur¬

rencies.

of

and the introduction of

stabilization

new

with

which

the

in

the

concerned

pro¬

Fund

has

past year,
two were put into effect by Euro¬
pean countries.

;

Improvement in
In

>

Spain

July 1959, the Government of

Spain presented to the Fund and
to the Organization for
European
Economic Co-operation
a

(O.E.E.C.)

comprehensive stabilization

pro¬

gram, which included budgetary
reform, credit restraint, and uni¬
fication of the
at

realistic

a

exchange structure
rate

of

exchange,

together with measures for the
liberalization of trade. In support
this program, Spain drew the
equivalent of $50 million in U. S.

of

dollars,

sterling and French
francs from the Fund, and entered
into

a

stand-by arrangement for
a further
$25 million; at the same
time, it became a member of the
O.E.E.C., and was granted a credit
of

$100 million from the European

Fund.
were

In

from U.
can

addition, $200

million

obtained from various U. S.

sources,

new

a

par

krona.

value for the Icelandic

In

support of this program Iceland
drew $2.8 million from the Fund,
into

entered

and

one-year

arrangement for

stand-by
ther

a

million.

$5.6

time, Iceland

the

At

fur¬

a

same

granted a credit
the European

was

of $12 million from
Fund.

I should like to add that in con¬

with

nection

these

stabiliza¬

two

tion programs,

and in the general
exchange of relevant information
and views, the Fund has continued
to
maintain
close
and
friendly
relations

with

O.E.E.C.,
harmony
has

basic

that

the

vailed between
tions

the

in

and
pre¬

the two organiza¬

pursuit

of

common

including

$70

S. commercial

already be said

million

objectives of monetary policy.
Hitherto I have spoken of
nancial

assistance

banjos.

It




it is in¬

whose currency is drawn,

teresting to point out that stand¬
by arrangements, which by their
very existence strengthen the re¬
serve
positions of the countries
without

concerned

money

any

being drawn, act in many ways as
a

form of credit creation.

Recalls Fight Against
Discrimination
When

14

1958

decision

the

But

achieved.

been

have been
of
really great significance. It led to
a
simplification
of
formalities,
to

proved

soon

which

not unimpor¬

in itself

was

fi¬

the Fund's work.

of

But it

should

be
emphasized that the
participation in these pro¬
grams is not confined merely to
providing financial assistance. The
Fund's

maintains

Fund

with

the

constant

the

country
period
of
any

problems that may arise dur¬
the implementation
of
the

ing

In addition to assistance in
nection

with

stabilization

con¬

pro¬

grams, use has also been made of
the
Fund's
resources
to
assist

which have large sea¬
swings in their balance of
payments. In such cases resources
sonal

made available for such short

are

periods

appropriate to the
problem,
and
repur¬
chases are usually made within,
say, six months, when the seasonal
as

are

member's

pressure

has passed.

In

the

past

this

type of assistance

was

given

to

considerable number of

coun¬

a

tries, particularly in Central
America, but many of the coun¬
tries availing themselves of this
temporary assistance have in re¬
cent

years

adopt

found

it

necessary to
general stabilization

more

when

these

bers'

effectively helped to

confidence

currencies

known -that

in

the

mem¬

because it
the- countries

was

had

growth

the

there

While

turn

their

in

hamper

measures,
will further

still

are

trade.

of

steps

many

to be taken, considerable advance
has

made

been

during

the

past

"in the elimination of for¬
eign exchange restrictions which
hamper
the
growth
of
world
trade"—to
quote from Article I
of the Articles of Agreement of
year

the

Fund.

Resources

The improvement in the mone¬

tary field has also been reflected
the

in

the

Fund's operations.
During
months ended on March

12

31, total repayments to the Fund
to

million.
world

$482
in

change

liquidity

position,

amounts

of

the

the

financial

large

assistance

extended by the Fund during the
period of acute exchange tension

the

Autumn

of

Spring of 1958 are
paid to the Fund.
hand,

1956

the

to

being re¬
the other

now

On

actual

drawings
have
the
equivalent of

to

discussed

were

at

Annual

the

on

ments

in October the Board of Executive

of the

at the end

Fund

Directors

unanimously
that, in view
improvement
positions of the

statement

serve

countries

approved a
of the sub¬
in the re¬
industrial¬

in

particular, and
move to external
convertibility,
the
Fund
con¬
sidered that there was no longer
any
balance of payments justi¬

fication

discrimination

for

whose

members

by
receipts

current

largely in externally

were

conver¬

tible currencies.

This
for

decision

balance

was

discrimination

on

payments reasons
communicated
to
the
Con¬

Parties

Agreement

on

to

the

General

Tariffs and Trade,

then meeting in Tokyo.

were

A statement issued at the conclu¬

sion of the

meeting of ministerial

representatives of the Contracting
Parties expressed views similar to
of

the

statements

Fund

by

decision.

the

Fund

The

and

the

Contracting Parties to the G.A.T.T.
the

were

logical conclusion of the

to

move

external

convertibility,

for, when currencies are
nally convertible, there

exter¬
are

no

monetary reasons for preferring
imports from any one country,
rather than from another.
Since

in the international

nondiscriminatory
be

last

able

six

It is

have

tries

in

been

Europe

taken

and

by

in

over

fairly wide area discrimination
becoming more and more a
thing of the past. In these coun¬

a

tries

most

current

today

of

tative

the

restriction^ on
transactions that remain

are

restrictions

has

been

it

mind

The

increase

in

Fund

the

par¬

ticularly marked in Europe, it ex¬
tends to other parts of the world,
and the restrictions that still re¬

must

assistance

the

to

restore

country
The

provision

has

its

to

to

taken

by the
assistance

the

resources

are

avail¬

members
to
see
them
periods 'of* difficulties

v

through

while the members'
measures

In

of Fund

counterpart in

be

receiving

Fund's

able

members

always be borne in

the

actions

own

remedial

take effect.

can

the

recent

Fund

busy years of
work, these principles have

been

submitted
have

to

been

a

severe

found

test

eminently

practicable.
For the strengthen¬
ing of international liquidity, the
Fund's

resources

efficient

are

particularly

since

they can be di¬
rected to specific areas of finan¬
cial

strain.

They

great value

also be of
no imme¬

can

when

even

diate

drawing is made, as is often
under stand-by
arrange¬
ments, or even when no request
the

case

at all is made for financial assist¬

Because of this second line
that is available to

ance.

of

reserves

them

in

the Fund,- a feeling of
confidence is created among Fund
members

even

though

the

re¬

directly under their

sources

con¬

trol

may be considered not ade¬
quate to meet every eventuality.
They can therefore safely make
their decisions with respect to the

freedom

of

payments

and

trade

without

having to pay undue re¬
gard to such temporary balance of
payments difficulties

as

from

may

time to time occur.

re¬

Resolutions

of

the

Board

of

recommending the in¬
and setting out the meth¬

crease,

ods that could be

adopted for the

payment of increased quotas, were

Feb. 2, 1959, and

on

com¬

municated to the member govern¬
ments for individual action.
The

Governors

had

resolved

the

that

enlargement would become effec¬
tive,

inter

alia,

having 75%
consented

when

total

of

the

to

countries

had

quotas

increase.

That

percentage was reached early in
September 1959, and the arrange¬
ment for the increase in Fund re¬
sources

became effective

15, 1959.
members

sent,

Since then
given

on

Sept.

many

more

have

their

con¬

the

percentage

now

and

quotas

to

up

the

end

of

July 1960, and several of the re¬
maining
countries
have
taken

ity position

rapidly.
the

would

is

seem

to

welcome

a

understanding of the usefulness of
monetary cooperation and a wide¬
spread willingness to make addi¬
tional
ensure

available

resources

the

effectiveness

cooperation.
members'

In

round

quotas

now

of

to

this

figures,

total

$14

billion, having been increased by
nearly $5 billion, and the Fund
holds $3 billion in gold and $10
billion

in

currencies.

moves

to

external

Since

the

convertibility

at the end of 1958, the greater
part
of
these
currency
holdings are

externally convertible, and
readily usable for interna¬

num¬

a

the world's liquid¬

improving quite

was

The official

reserves

of

Western

European countries
Japan
increased :f by
the
equivalent of about $3V2 billion
between the end of June 1958 and
the end of December 1959.
This
increase

took place despite pay¬
by these countries of the
equivalent of about $1 billion to
ments

the

Fund

in

respect of repur¬
gold subscriptions on
their increased quotas. Even the
figure of $3V2 billion does not tell
chases

the

and

whole

time

the

ings

of

creased
of

story, for at the same

foreign exchange hold¬
commercial

banks

considerably in

countries.

Exact

in¬

number

a

data

are

not

available, but for the countries of
would

$1

as

Europe

billion

18 months'

the

to have been

seem

increase
as high

above the

and

over

increase in official

in the

reserves

period.

International

of the member countries there has
V
been
practically
no
opposition

that

resources

when, for

and

In the parliaments

so.

time

a

ber of reasons,

Western

reached is as high as 90%. Coun¬
tries
may
consent to their in¬
creased

at

came

Governors

thus

sure

the poli¬

The increase in Fund

which was already on the
way when I spoke to you a year
agb, has now come into effect.

now

to

country in

likely

are

that

Aided

Liquidity

By U. S. A.'s Deficits
It

would

ticular

particular, that

that

the

tween the Fund and its
and

there

coun¬

be

by

more

equilibrium.
The
Articles
0f
Agreement of the Fund
establish
a
<
balance,, of responsibility be¬

this

other countries to reduce discrim¬
ination against imports from the
area

question

quotas—and

certain

must

followed

signify

satisfying

in

Fund

made

quantitative
very

provided in relation

country's quota, the

a

many

to

fullv

'

sources,

The

been

the

assistance

sible

report that in the
months such determined

steps

rules.

have

resources

explained in the Annual Report*
of the Fund; in
brief, these prin
ciples demand that the greater

from any party to the increase in

of so

reserves

many countries have also
possible the elimination of

restrictions.

Fund, and I am glad to be
able to say that repayments have
been made in conformity with our

steps to do

the

convertibility move
in December 1958, improvements

to

once

of repay¬

excess

drawings emphasizes
again the revolving character
over

adopted

of

stand-by arrangements

March 31. The

Governors
of September 1959; and

of the

Meeting

Fund

and

DJ^'iftcreasefr; Fund's

able under

of
These matters

reasons.

While progress in the elimina¬
tion of discrimination and
quanti¬

—

nevertheless

es¬

payments

fully used —
they have

even

of

The
principles
anri
governing the use of

practices

cies

trade and payments for balance

in

discrimination

arrange¬

stand-by

ments have not been
or
not used at all

payments
plagued

so

nothing more than pro¬
tectionist devices, or are consid¬
ered necessary in relations with
state-trading nations.

Experience gained in

which

exchange.

the

$155 million, and further resources
totaling $200 million, were avail¬

is

credit."

of

longer any good reasons

maintain

to

ments.

of

retaliatory

amounted

dollar

recent years has shown that

manifestly

longer

no

deed,

programs, and have then come to
the Fund for longer term assist¬
ance
under stand-by arrange¬
As you no doubt
know, these
stand-by arrangements correspond
rather closely to what in
ordinary
banking parlance are called "lines

is

Thursday, April 14, 1960

.

the

trad¬
discrimination

that

.

are

cause

a

ing

from

those

program.

removes

between

Then it be¬
came clear that many of the prac¬
tices of those years would also
have to disappear. There were in¬

who

requested.

it

At

tension
nations,
for

quite substantial

—began to disappear.

when

been

time

dangerous

the

countries in the postwar era

no

harmful.

economically
same

which

distortions

of

removal

amounted

difficulties—which had
many

inatory restrictions is of course
important because it provides an
impetus to the balanced expan¬
sion of world trade, and to the

With

balance

about

decreas¬
foreign

a

the

of

The elimination of discrim¬

have

increases, the fears and apprehen¬
sions

cover

trade of the Fund's member coun¬

tries.

industrialized

most

countries showed

tracting

has

international

the

in

of

serves

stand-by arrangement, often
through a resident staff official
this

a

monetary structure was greatly
strengthened.
When during the
course
of 1959 the monetary re¬

contact

member

throughout

any

created

confidence

ized

in

satisfying indeed that this has
again been one of the main fea¬
tures

It

tant.

generally
proportion

ing

provoke'

of

end

the

at

main

.

sential is bound to be regarded as
unfair and as such is likely to

Non-Justified

support of
the widespread
programs, and it is

stabilization

sustain

that the steps

country

the

from

stantial

countries

the

been

included the elimination
multiple
exchange
practices

program

their

Of

The

balance in Iceland's economy.

eliminating

grams

stability and external

internal

of

been

countries

themselves in

~

drawn under

solved, but I This enables the Fund to give
particularly significant technical assistance and advice on

it

power

no

feeling which
soon spread, that
the steps taken
prehensive stabilization program
would not be reversed; in that way
which aimed at the achievement

••

Praises Latin American Response

and

over

reserves

February 1960, the Govern¬
ment of Iceland also presented to
the Fund and the O.E.E.C. a com¬

rather than money wages
in the long run, cannot be over¬
..

to

amounts

In

wages

rated.-

the

foreign credits.

of these

economies

has

Fund

obtained

are

Europe.

added

been

above

and develop
countries,

diversify

to

in

resources

scarce

the

The stable ex¬
European countries introduced ex¬
change quotation for the peseta is
ternal
convertibility,
it
was
evidence of Spain's improved bal¬
thought by many that this was a
ance on foreign account, and since
more
or
less formal step, simply
the stabilization program was in¬
what* had already
troduced
over
$200 million has recognizing
Western

is

currency

their disposal.

at

resources

While

gether with the reduction in dis¬
efforts towards
the achievement, crimination, has created the con¬
ditions for the realignment of the
of stability have been most diffi¬
cult and where the greatest sacri¬ Spanish economy with the econo¬
mies
of the other
countries of
fices have had to be made.
This
South

Chronicle

The Commercial and Financial

(1648)

for

their
the

to

have

not

these
add

reserves

deficits

been

pos¬

in

par¬

countries
so

had

in

substantially to
it not been for

the

U.

balance

S.

of

payments, by which in 1958
$3.4 billion, and in 1959 $3.7 bil¬
lion, were made available to other
countries. Since the United

still

holds

Western

this

one-half

over

World's

gold

while

its

on

reserves,

particular
liquidity position,

outflow caused

strain

States
the

of

no

it

greatly helped the gen¬
by bringing about a
useful redistribution of the world s
eral position

reserves. It is instruc¬
tive to contrast this situation with

monetary

what happened in the years from
1926 to 1930 when many European

tional transactions.

countries

Through the increase in quotas,
individual countries have acquired

after the re¬
ductions that had occurred dming

additions to their "second lines of

and

reserves," for they can now draw
larger amounts from the Fund in

War; then the gold markets wer
submitted to a considerable strain,

up

their

just

case

of

supplement their

which

own

holdings of gold and foreign

of the

need

to

were,

striving

to

build

reserves

after

was

a

the

First

contributory

World

cau^.

subsequent crisis. The

fact

;

Volume

of rebuilding the

the process

t

European countries
time been so relatively
of

prves

S

Number 5942

191

this

Sfooth
f

has certainly been
decisive extent, to the

due,

out¬
flow
of funds from the United
States that has taken place.
Valuable as this outflow
of
,.JS from the United States has
Sen-in many respects, it could
naturally not be allowed to con¬
tinue indefinitely on such a scale;
in taking corrective measures the
Jr s authorities have primarily
turned
as others have done in
similar situations,. tp measures of
fiscal and credit restraint. As the
recession of 1958 gave place to an
'turn of business in the course
of the following year, it became
appropriate from a domestic point
of view to limit the expansion of
credit, and to aim at a budget
surplus. Under the impact of such
measures, there has been a widen¬
ing resistance to price increases,
both wholesale and retail, and this
seems to have been .followed by
increased attention to costs. With
the upsurge in business activity
a

.

.

The Commercial and Financial Chronicle

,

whose
for

currencies

important

are

international

trade

and

prices of most foodstuffs and

pay¬

other commodities

ments

will find it possible for¬
mally to undertake to implement
the full obligations of Article VIII.
Repeats

View

While

of

those

Inflation's

who

and coal
or

End

follow

sta¬

tistics of reserves and balances of

payments will find impressive in¬
dications

of

the

world's

the

general

strengthening of
structure,

a

monetary
public is

con¬

more

cerned about what

purchasing
other

happens to the
of money; in
to the • prices they
for the goods and

power

words,

have

to

pay

services

they need. Some prices
still be rising, but for not a
goods prices are declining

may

few

in;

—

some

including oil
have fallen, and more
—

less offset the increases. Thanks

to

brisk

demand, it has generally
been easier to dispose of accumu¬
lated

stocks—and

has

that

been

not
prices

advantage—but there has

an

been the general advance in

that might have been expected at
a time of
booming business in the

industrial

countries.

producers

mary

the pri¬

For

this

has

been

a

prices, and liquidity are

properly adjusted in each country,,
and before a proper adjustment
is made between
countries. Marked and

of these factors

different

persistent disequilibria, when they
occur, may have to be corrected
by alterations in exchange rates—
have

alterations

such

but

often

for

and should be reserved
when other
duce

the

re-emergence

adjustments;

necessary

of / Western

countries

productive

cases

fail to pro¬

measures

The

European

many

repercussions,

unexpected

with

capacity

great

has therefore helped

countries

to

confidence in
only a few
years ago. With this increase in
confidence, the desire to hedge

produce
money

and

strong

competitive power, has, of course,
introduced

ing

the

a

new

element

balance

of

economy. But when

affect¬

the

world

these matters

discussed—and much is heard
about the replacement
of what
are

called

was

"the dollar shortage"
by "the dollar surplus"—it should
be forgotten that the United

not

States

stil-l

has

surplus

a

of

ports

over

dency

over recent months for

imports,

with

surplus to increase.
In
and

.

more

than

.

existed

being

monetary

increased

of

or

/

has

wards

correc-

tend

to

•

Much prog¬

that the present structure

exchange

whole prove

?. Qr

are

already been made to¬
lasting equilibrium, and

a

it seems

take

decreased,

which

equilibrium.

ress

gold

reserves

themselves set in motion

*ye
«.orces
establish

this

rates

will

on

the

durable, and that the

alaes already

agreed

with

Wl11 generally be main-

tabled

Wants Article

Fulfilled

i

1

?ns

on

current

Pay-

transfers, of discrimiof rnniCtVr[ency arrangements and
and
S4;urrency Practices,
foreign-hew k ,convertibimy of
counSL l ba'ances- Member
under
had the OP"®11
Agreement' f X!V o£ the Fund
ligations
I mitigating their ob4 i t„ "?,er Artiele VI11 dur"
natow

period. Under
members could deehange |.,™(a'n»tain or adaPt expract!cer a 10nus and the other
seeks to
Wh'Ch Article VIII
Article

m

eide

,

Wions

:

h=

c°untries

As financial

con-

h/LTPr°.V?d' member

/.

found less and less
Ptovisinnt rU?on the transitional
well be
,°h A/icle XIV- It may

"eed

near

tr.

fut.'.r

a

I

and

have

e'

that

in

the

number of countries




all

likeli¬

was

over—

in

that

inflation

world

hood

be

worked

work

tions.
Fund

within

out

frame¬

a

financial

of

stability, and
noninflationary condi¬

thus under

Moreover,

to

access

the

in accordance with

resources

the principles and policies worked
out for their use is likely to in¬

the chances that temporary
encountered
in *the

crease

sur¬
eco¬

con¬

nomic

producers themselves but also by

itself

the industrial countries.

producers
effort to

mary
every

of

course

sidered, not only by the primary

interest
of

to

most

are

development

can

policies

pursue

which

likely to have the effect

avail¬
and which will en¬

able resources,
able them to use

own

these

resources,

and any that can be obtained from

abroad, in the most effective way.
For this reason it is particularly
important that they avoid infla¬

of
the
country
trading partners.

to its

Valorization

:i;r7''V

for

Commodity

Fluctuations

hesitation

no

in

c»nital from

ity,

the

in

Even

the

prices

of

shown

has

of raw

remarkably

increase, while the index of

little

prices of foodstuffs has fallen. In
the
important
field
of
power,
there is a plentiful supply both
coal

and

oil, freight rates

are

much

low, and there is
greater competition for al¬

most

all

still

relatively

of

kinds

manufactured

this competition is
particularly intense in the export
trade. Moreover, efforts are being
made in a great many countries
to reduce budget deficits, and in
some countries to aim at a budget
goods

and

—

surplus which, together with more
cautious credit policies,
are
the

the

being
such

ply
any

in
general

measure

proper

to

how

see

boom.
picture,

a

This
it is

there/could

be

change in demand and sup¬

a

Underdeveloped

conditions that would cause
appreciable rise in prices on
world

The

a

now

to

have

liquidity and certain
emanating from

of excessive

other

seems

stage where the impact

influences

have

spent their force.
expanding produc¬
tion of goods may be counted on
to prevent appreciable increases
in world market prices over the
next few years at least.
If the
trend
of
international prices is
the

war

the

Therefore

individual country
inflation will
do so at much greater risk,., for
gone arev the days when any one
country that inflated might hope
to be saved by inflation elsewhere.
Any country which today permits
the price level to go on rising
will be exposed to the balance of
payments difficulties, and also be¬
fore long, as its competitive power
that

any

embarks

declines, to

upon

deterioration in its

a

employment situation. There has
been
a
growing
realization of
such dangers; and in more than
one country the possibility of such
untoward developments has been
cited as an argument in favor of
more
cautious fiscal and
credit
policies.,

countries
of

ized
the

refer again

countries
average

there

has

been on

little increase in the

prices of primary products.
true that the

materials

assisting

It is

prices of certain raw

have

risen,

'

but

the

7

growing

importance

less-developed

the

But

such

resources

as

be

will

made available—and

they will al¬
ways seem limited in relation to
the requirements around the world
be

—can

only

if

used

really effectively
potential of

earning

the

the

developing countries is safe¬
guarded and strengthened.
In a

situation

in

likelihood

which

of

there

important to facilitate the market¬
ing of their main products and

other commodities which they
might be able to export as a result

any

of

diversification

the

of

their

economies.

Thus the tariff and other trade

policies of the industrialized coun¬
tries become a matter of primary
importance.
In the world today
there are certain gratifying ten¬
dencies

towards

reduction

a

of

tariffs, which, however, seem to
largely to the benefit of trade

be
in

manufactured

effort

must

be

articles.

made

to

Every

facilitate

trade in

primary products as well,
and to ensure that, whatever other
s+pps may

be taken, no additional
obstacles of any kind are put in
the

of such trade. There is
therefore a special responsibility
incumbent upon all those who are
now
considering trade arrange¬
ments
in
Europe and in other
way

parts

of

the world.

There is no

doubt that trade is more important

than

aid, particularly for the de¬
velopment of the primary produc¬
ing countries; and if aid is to be
effective, trade must be given its
proper chance.
It is

not the

national
vide

task

Monetary

of the Inter¬

Fund

to

developed

given careful attention over
recent months, is concerned with
the difficulties arising from the
instability of export earnings that

than

capital for development, but
play and has played

three

Its

re¬

made available
to

for| pe¬
usually not longer

five years to assist

countries in temporary

balance of

payments
difficulties, with the
primary objective of gaining time
for the countries assisted to take
effective corrective measures. The
Fund's contribution to the prog¬
ress of the underdeveloped
coun¬
tries

is,

from-

comes

marked

variations

either in world prices of primary
products or in the volume of pro¬
duction and sales.1 At the request
of the United Nations Commission

International

Commodity

Trade, the Fund has prepared a
study; of its policies and proce¬
dures in relation to the compensa¬

tory financing of commodity fluc¬
tuations, and this study is being
transmitted to the Commission

International

The

Commodity

on

Trade

Fund

therefore/indirect; it is

the

varied

most

find a high rate of
growth in the period of declining
prices from 1873 to 1895; we find
there

we

was

growth,
perhaps
high a rate, in the
period of rising prices from 1900
to 1914; there was a further period
at not

quite

so

of substantial growth under condi¬
tions of a more or less stable price
level in the 1920's; and a high rate
in the years following the Second
World War.

As

on

many

occa¬
mem¬

ings, and members
fidence that Fund
conjunction with
of their

ficient

own

a

have

can

con¬

assistance,
reasonable

in
use

reserves, will be suf¬

enable

to

such

come

them

to

over¬

temporary payments
It would, however,

difficulties.
neither

far

knowledge goes,

our

as

conclude

cannot

we

increas¬

that

ing prices are essential for growth,
or
that they even favor growth.
Whenever there is great technical
progress, and therefore a strong
demand

for

capital, the limiting
availability of savings

factor is the
—and

is

confidence in the currency
doubt more likely to

without

a
higher rate of savings.
There is therefore every reason to

ensure

affirm that

the maintenance of

relatively

stable price

vides

most

the

basis

practicable

be

adjusted to the prevailing price
Practices appropriate at a
time when prices are rising would
not be appropriate when stability
prevails.
>

trend.

Now that the period of postwar
seems
to have come to

nor

desir¬

end,

an

of the most important

one

tasks is to learn how to live with¬

inflation.

out

Those

people, and

those countries who make this ad¬

justment most rapidly will best
profit
from
the
advantages
of
modern
and

techniques of production

marketing, and will be able

achieve

to

higher

a

standard

Considering that the experience
of businessmen and

the

last

20

labor leaders

has

gained under conditions of

tions in the proceeds of commod¬

ity

exports, or to provide any
separate form of Fund assistance

While

the

primary

can

to

their

keep

keel

even

It

has

been

teristics of

countries

world

producing

themselves do much

economies

on

an

despite fluctuations of

markets, and while

access

to Fund resources should go far to

relieve their payments difficulties

arising from

this

source, the in¬
dustrialized countries also have a

tion

that

In

should

the

maintain

their

efforts

to

mitigate the sharp fluctuations in
their

demand

ucts,

for

primary prod¬
arise from booms

such as
recessions, and, in particular,
to avoid any danger of a relapse
into: a deep depression such as

and

occurred in the

they

can

1930's.

that

ensure

rangements for the
domestic
ercise

Secondly,

agriculture

depressing

their

ar¬

protection of
do

not

ex¬

disturbing
effect on world trade in primary
products. Thirdly, they can in¬
a

crease

or

their efforts to provide an

have been

we

presented

again with new
requiring a fresh ap¬
praisal of the conditions under
which we can pursue our activ¬
over

ities.

Economic

siderations

social

and

are

that

think

the

will be

favorable

most

when due

gained

weight is given both to economic
exigencies and the desire for so¬
cial improvements. In the present
situation, in which it is necessary
to take

look at many prob¬

new

a

lems^ I believe it has been appro¬
priate to draw the attention of the
changes

Council

Social

and

Economic
the

in

price

trends

this

in

problems

our

new

address

♦An

the

Economic

by
and

Mr.

Jacobsson before

Social

Ouncil

already said, they

First Investors

of any

can

make every

no

kind

additional

put in

are

the way of world trade in

primary

1960.

Advances Two
John

Without
From
1939

up

almost

the

Inflation

outbreak

of

war

in

general level of world prices,
and the general public in many

the

such

an

became

accustomed

to

increase—and had begun

to take it more or less for

Now

that

this

granted.
assumption seems

longer valid, more caution is
called for both in relation to cost
no

increases
In

this

and

new

lems will

in

other

situation

Case,

respects.
prob¬

of

tor

tual

contractual

the

week-end

First

will

in

be

over

following

of

the

promo¬

has been

Vice-President.

charge

He

all branch

John H. Ko^t-

office

operations.

mayer

has been named Vice-Pres¬

ident

has

and

also

sales

been

new

arise; and the prospects

Wall

distribu¬

plans and mu¬

tions: David D. Grayson
named

First

120

announced

funds,

;

President of

Corporation,

Street, New York City,

to 1957-58, there was an
uninterrupted increase in

countries

D.

Investors

Growth Periods

of .the

Nations, New York City, April

products.
Review Past

situa¬

tion.

adequate and stable flow of longterm capital to the less-developed
countries, and, finally, as I have

obstacles

to

and

general attitudes that have taken
place, and to the importance of
finding the proper solutions of

United

effort to ensure that

con¬

necessarily inter¬
mingled in this whole process, and
results

steady.

charac¬

the

economic life since

situations

I

play in keep¬
relatively
first place, they

of

one

our

and

over

ing

markets

been

an

the time of the Industrial Revolu¬

considerable part to

world

years

in¬
flationary rise in prices, there is
need for a readjustment in atti-*
tudes and behavior that may not
always be easy.

fluctuations

export

alone.

of

living.

assistance dependent on any auto¬
matic formula related to fluctua¬

with

•

the periods I have mentioned, eco¬
nomic practices generally had to

able to make the amount of Fund

deal

for

sustained growth. But one proviso
must be kept in mind: in each of

over

to

a

level pro¬

reliable

inflation

has

sions provided assistance to

be

under

conditions;

for discussion at its Eight Session.

pro¬

vital role in relation to the un¬

countries.

the

been

the Fund can
a

of

aspect

facing the under¬
countries, which has

now

little

is

significant in¬
prices of primary
products, it becomes all the more
any

the

in

crease

problems

fluctuations in their export earn¬

countries, and much thought is
being given to the way in which
assistance can best be arranged.

riods which are

to the fact
that in the recent period of great
business activity in the industrial¬
I

.>

vital

particular

bers in temporary balance of pay¬
ments difficulties resulting from

industrialized

the

the

of

sources are

Advises Primary Producers

May

in

awareness

derdeveloped
;

Areas

There is undoubtedly a

world markets.

reached

sources.

Growing Awareness to Aid

of a

recent period

index

materials

from both

—

re¬

upturn in business activ¬

distinct

abroad

official and private

One

on

occurred

structure

or

The pri¬

need to make
rationalize the

mobilizing all their

peating that statement here today.

steadier,

VIII

twe im.Provement which we have
attpntiW
^as '• ref°cussed
convpi?-k• fPore sharply on/ the
VIII oftv!I Provisions of Article
Artinif
^Und Agreement. This
»r?Vldes for the avoidance
menk

statement

the

hard

exchange balances which
as

ten¬

::;4

general, movements

place

ot

a

ex¬

increased that de¬

are

velopment plans and policies will

be

carefully

tionary financing, for this not only
discourages domestic savings, but
leads to the dissipation and mis¬
use of scarce resources.
By dem¬
growing disbelief in continued onstrating its ability to run its
domestic
affairs
competently, a
inflation. At the Annual Meeting
becomes
more
credit¬
of the Board of Governors of the country
worthy
and
more
able to attract
Fund last September I ventured

of

the chances

mounted without harm to the

be

.

relations between domes¬

less important for for
achieving a high rate
of
Through the Fund's growth is often discussed. A study
regular contacts with its members of the past shows that growth has

ments

.

pronounced in Europe than against inflation which has been
the practice until quite recently
Unitedt States, there rare
has distinctly weakened. The de¬
now distinct signs;>ol, an increase
cline
in
stock
exchange prices/
in U. S. exports, together with a
;which has been such a notable
reduction in the over-all deficit
feature in several countries dur¬
in the U. S. balance of payments.
ing the opening months of 1960, is
!
After the upheaval of a world
certainly not unconnected with
war, it necessarily; takes . time-be¬
the
tic costs,

not

difficulties

should

33

reason..

.

the

fore the

however

that

disappointment—and in the impli¬
cations of the recent price move¬

many
parts
of
the
world, production of their basic com¬
especially
if
improvements
in modities, and to diversify their
quality are taken into account. economies.
They will naturally
The
greater
degree
of
price have to rely to a large extent on
stability now noticeable in many - their own efforts; and it is in their

more

in

(1649)

of

the

board

coordinator.

elected

a

He

member

of directors..,

34

Chronicle

The Commercial and Financial

(1650)

.

.

Thursday, April 14, 1960

.

* INDICATES

Now

Securities
•

(5/16-20)

Industries, Inc.

Aero

March 11 filed 250,000 shares

Price — $3.30 per share. Proceeds — For new
equipment, expansion of the business, and general cor¬
porate purposes. Office—Pottstown, Pa.
Underwriter
Myron A. Lomasney & Co. of New York City.

Agricultural Research Development, Inc. (5/2-6)
25 filed 200,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—To purchase land,
to construct buildings, and provide necessary equipment
and capital to engage in a hog raising enterprise. Office
—Wiggins, Colo. Underwriter—W. Edward Tague Co.,
Pittsburgh, Pa.
Note—This statement is being revised.

(Friday)
American Molded Fiberglass

Underwriter—Standard Registrar &
Transfer Co., P. O. Box 6111, Albuquerque, N. M.
Los

Equipment

Angeles, Calif.

April 18

•

(Edgar

B.

Co.)

(S.

Automation

Fuller

D.

&

Co.)

Fennekohl

&

Crawford

E.

Hutton

&

Hutton &

E.

Paint
(P.

&

W.

Chemical

Brooks

Corp

Co.)

&

Preferred

Brooks

W.

Co.)

&

,,

Bonds

-

(Pacific

and

Underwriter
Note — This

Dallas.

Coast

'

President, 2512 Reynolds
Underwriter—None.

Alterman-Big Apple,
March

filed

18

403,310

Inc.

Avenue,

of

Kahr

A.

Mills

Lynch.

Straza

Frontier

Life

(Offering

American Land Co.
14

filed

of

common,

one

of common

subsequently

amended to

common

one

&

T

U

200,000 shares of

stock,(par 10 cents). Price—$5 per share. Pro¬
property acquisition and development. Of{iCe~~iJLE*J53rd street> New York City. Underwriter—
Hemphill, Noyes & Co.
ceeds—For

•

American

Feb.

Life

Fund, Inc.

17 filed

$20

Calif. Underwriter—The
First Boston
Corp., New
Note—This statement is to be
withdrawn.




Inc.)

:

Continued

on

110,000

Broad

Common

Street

Corp.)

Corp.t

Australia

&

Co.)

300,000

shares

&

Co.)

300,000

shares

(Commonwealth of)
/Morgan Stanley & Co.)

——Bonds
$25,000,000

__

^

(Shields &

Co.)

Z

12

noon

Co.

W«'d

&

Securities

Financial
(White,

Sanders

Goods

Common

EST)

and

Co.

and

&

Inc.)

shares

.

'

-

shares

...Capital

*"

""**

__Bonds

Co.)

&

&

$450,000

Co.)

&

..Common

$720,000

.Common

Co.,

Inc.)

$500,000

.Common

300.000 shares

Kirkland

Jenks,

&

.V

$510,000

Co.)

&

Inc

Co.,

Debentures

Inc.)

100,000

$500.000;

shares

.

Common

/,—

Walker

Edison

April 27

11

&

Co.)

shares

100,000

Bonds

Co.__
EST)

a.m.

$15,000,000

(Wednesday)

/

^

/

Capital
Weld

&

Co.)

204,000 shares

(Thursday)

(Bids

1

11:00

Stone

&

Sachs

April 29

&

May 2

Stone

Co.; The Ohio Co.
Co.) 325,000 shares

and

Shearson,

shares

Common

Malkan

&

Co.,

Inc.

Co.,

Inc.)

and

Street

%

$199,998

(Monday)
(W.

All-State

Edward

l

Tague CO.)

$1,000,000

_________-CapitaI

Properties, Inc
to

stockholders—underwritten

Co.

and

Allen

Alterman-Big Apple,

&

Co.)

by

Bear,

Inc.__—---Common

Alstyne, Noel

American

A.

&

Co.)

$7,259,580

Lomasney &

Co.)

.Common

100,000

Bowling Enterprises, Inc.

(Myron

A,

Lomasney

&

Co.)

100.000

American Frontier Life Insurance
(Union

Securities

Stearns

shares

870,132

Americ'an Bowling Enterprises, Inc
(Myron

Common
and

_____Common

Co.

<fc

331,740

(Friday)

(Van

Webster

Co.)

Agricultural Research Development, Inc.__Common

$35,000,000

Common

Allen

Co.;
&

Corp.

(Arnold

,

.Common

Lomasney & Co.) 54,000 shares '

Holt, Rinehart & Winston,, Inc._.

&

Webster

Bonds

$30,000,000
.__

(Myron A.

(Offering

Bonds

EST)

a.m.

Dynex, Inc.

$20,000,000

..Common

•

$1,000,000

Systems;' Inc..—^--Common

Corp
H.

&

Corp.) 800,000 shares

&

150,000

Co.;-

Microdot Inc.

Weldotron

Corp

Weld

Becker

120,000 shares

200,000

Corp.)

&

(Tuesday)

(Goldman,

shares

Transcontinental Gas Pipe Line
Corp
Union

35

&

Securities

(Whit^.

G.

(G.

Common
650,000

Transcontinental Gas Pipe Line
Corp,_—
Weld

Metal

$285,000

Rajac Self-Service, Inc.—

(White,

Corp.)

,

Sulzberger, Jenks, Kirkland & Co.)

April 26

'•

Puget Sound Power & Light Co
(Bids

Common

Corp._—r_i—

Common
Securities Co.)

(Hornblower & Weeks)
NAFI Corp.
_

$300,000

Common

Morgan

Hammill

.

Inc.)

Co

Brod

Sulzberger,

(A.

,

Menu-Matics, Inc.
Middle South
Utilities, Inc
'Bids 3:45 p.m. EST;
Nesbitt (John J,), Inc—

Common
Co.,

&

Blaurtei"

(White,

Common

Noyes

i:v>,

Corp.

Schramm

April 28

Co

(Hemphill,

$300,000

30,000 shares

Laboratories,; Inc.„_—.^-.-Coinmon

Preference

Noyes

Co.)

Cincinnati Gas & Electric Co.__

Co

(Hemphill,

Debentures

Wolverine Shoe & Tanning Corp.—Common

'

(Wednesday)

Land

(S.

(Hallowell,

$300,000

(G. Everett Parks & Co., Inc. and Sulco
Securities, Inc.) $1,000,000
;

Corp

Co.)

&

&

Whitmoyer Laboratories,

$300,000

...Common

shares

Co.__

(Bids

—

$300,000

Capital

D.

Metropolitan

Inc

Inc.)

(A. T. Brod & Co.)

Common

(Clayton Securities

Common

Co.,

Murphy

Industries

shares
___

First

50,000 shares

—_

Fabricators, Inc

(Hallowell,

(Tuesday)

American Land

York!

page

Wells

^—-Common

Inc

and

$300,000

Common

&

Morgan

'(Peter

Whitmoyer

..Common

Saxe

April 20

per

,

1

(Walter R. Blaha &
Co., Inc.) $300,000

1,250,000 shares of capital stock
(par $1).
share.
Proceeds—For investment. In¬
vestment-Advisor—Insurance Securities Inc.,
Oakland,
Price

:

Common

Engineering Corp

J

share

?

Inc.)

"Tfeermal; Industries of Florida, Inc

Common

Inc

Associates,

....

stock

-

-

Common

Securities,

212,500

Morgan

.(A* T.

Universal

$600,000 r.-

by

$3,830,000

City

Inc.)

Teletray• -Electronic

to stockholders—underwritten by C.-E.
StoltZ & CO.) $154,962.50
'■

Components, Inc.,

^

stock, to be of¬

share of preference and

Inc.)

"

,

Debentures

Co.,

Higginson

-

K''

-

share.

(Lee

(Milton

•

Co.,

Co.)

•

,

(William R. Staats & Co.) 3,000 shares

.......Common

&

•

Telectro Industries Carp;--:^-:-------^-Debentures

shares

$787,500

Common
$300,000

& Lumber

Electric

Capital'

(Darius,

(5/2-6)

A preference

Co.)

shares

58,337

Common

Street

,v/.'

Common

Hogle & Co.) 230,000 shares
Karasik

Captains Club,

(4/20)

($15, par) and 300,000 shares
fered in units of

A.

(Pleasant

300,000 shares of class

&

Inc.)

&

Instrument

Superior

Common

Bros.

Co.,

Corp..

Beckcv

(Pearson,

(Myron A. Lomasney) $600,000

April 19

200,000 shares of capital stock.
Price—$8
increase capital and
surplus.
Memphis, Tenn. UnderwriterUnion Securities Investment
Co., also of Memphis, which

Dec.

107,290

G.

.

Devices,

American

per

Service

$1,000,000

Tenax,< Inc.__

r

selling commission of $1.20

$12,000,000

(Offering to stockholders—underwritten by C. E.
Stoltz & Co.) $537,788.75
;
/ 'yv/-.

B

share. Proceeds — To
Office—1455 Union Ave.,
a

Co.)

Debentures

Industries, Inc..

(Peter

..Common

&

Corp

Seaboard Plywood & Lumber Corp.______Common

45,000 shares

Electronics, -Inc..

per

will receive

Lynch)

'

shares

Corp

First

and

(Peter

Tayco Developments, Inc

Underwriter

Insurance Co.

&

Co.

Common

Equipment Corp

Witter

(Frank

com¬

on new land, retirement of short-term
loans, payment for additional equipment and fur¬
nishings and for working capital. Office—3267 South¬

30 filed

&

&

&

(Stroud

Spring
Corp.*

150,000

stockholders—underwritten

to

Seaboard Plywood

.Debentures

Inc.)

Parker

_____—..Common

Co.)

Planning Inc.)

Industrial

Unterberg, Towbin Co.)

Share

i.Common

Auchincloss,

«

&

Service

Renner, Inc.

Industries

Sunair

the balance

Nov.

Smith,

-

:

$3,000,000

Inc

Pierce

Common

$300,000

___—

(Sutro

bank

American

&

Leonard

Co.

war¬

-

&

E.

/

$51,000

Manufacturing, Inc..—-..Common

Tool

(A

Common
Bond

(Dean

Proceeds—To

Boulevard, Portland, Ore.

Premier

Common
C.

shares

(Kidder, Peabody & Co. and McDonald'& Co.)

$105,000

Realty Equities Corp.

Foundation, Inc.
share).

Fenner

Pendleton

Common

Inc

and

68,000

Inc.)

and

Broadcasting

Tile

Securities

Netherlands

_

Pierce,

(Moore.

Rap-In-Wax

Wallson

60,000 shares of

(Jacey

$600,000

Corp.)

Inc.)

Pacemaker Boat Trailer Co., Inc.

$1,500,000

Inc

Securities

shares

Corp.._______L___Commdn

Stone

(Offering

$300,000

and

Co.,

Co.

&

Allen

Co.)

Corp.

(Russell

Hawthorne

Inc.

Inc.)

Co.,

Nuclear Materials

Rochester, N. Y.
Lomasney & Co., New York City.

east

Co.,

Common

220,605

New Jersey Natural Gas Co.__

$2,293,060

newff bowling centers.
Underwriter — Myron A.

—Jerry A. Barfoot, Portland, Ore.

&

-Debentures

.-Common

Redpath)

(Fund

$250,000

Co.)

&

Management

National Lawn

$12,555,600

Corp

(Plymouth

United

pay

&

$350,000

$330,000

•—___

Lemon

(Rauscher,

$300,000

Corp

Factors

Mobilife

of

notification)

Co.)

Sudler &

Inc.)

Inc.)

Co.,

(Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & Co.) $6,000,000

Common

Winston

(J.

Price—At par ($5 per

Co.)

C.

Cohon

(Lee Higginson Corp.

ceeds—For

stock.

Amos

Co.,

&

Holman & Co.,

'&

Monarch

Common
&

Holman

A.

Metropolitan

'

,<

;

Inc

and

Shoe

(Merrill

Taylor

mon

Co.)

Holinan

A.

(Hayden,

Debentures

(Glenn Arthur Co., Inc.)

Melville

give the right to purchase the stock at $7.50 per
the first six months, at $8.50 per share from
the seventh to the 24th
month, and at $9 per share from
the 25th to the 30th month.
Price—$7.50 per unit. Pro¬

American Convalescent
March 31 (letter of

Co.

Electronics

share for

construction

Sachs &

&

Common

Products, Inc

Majestic Specialties,

Common

$300,000

Edden

shares

<

$1,617,500

Corp

Megadyne Electronics,
stock

The class A

.—Common

$200,000

Ltd._

Earl

115,000

.(Kidder, Peabody & Co.) 320,000 'sharesHowe Plastics & Chemical Companies, Inc.,.Com,
.''-..*"7 '•»'(Hilton Securities, Inc.) $100,000
^

Common

and

Inc.)

Washington Industrial Investments,

/
;v :
Hamilton
,

Bearing Corp

Lawn

rants

the

Inc.)

Holman

A.

(Johnston,

Common

Club

Securities,

Office—933 Lee St., S. W., Atlanta,
Alstyne, Noel & Co., New York.

—

Inc.)

Co.,

Inc.

Common

(J.

Las

...

-Common y:

Keystone Electronics Co., Inc.—_

Bowling Enterprises, Inc. (5/2-6)
25 filed 100,000 shares of common stock
(par $1),
100,000 class A purchase warrants, to be offered in

Office

Bros,

(Prudential

common

warrant with each share.

Sullivan.

(Morris

Price—$18 per share. Proceeds—
indebtedness, for working capital and other

one

H.

Inc.)

\r-A

Inc..

Country

Drive-In,

Office—Montreal, Canada.

units of

$300,000

.

Co.,

Common
&

.

Co.. Inc.) $300,000

&

Associates,

(Purvis &

American

and

Holman

$255,000 i

Inc

Becker

(R. A.

I C Inc.

if Aluminium Ltd.'
April 6 filed 16,700 shares of capital stock, to be offered
pursuant to the company's Employee Share Purchase

Feb.

&

(Westheimer

Underwriter—Van

Plan.

A.

Hills

Henry's

tain other individuals.
repay

Co.)

Fabrications, Inc

(Goldman,

(par
$2.50), of wihch 60,000 shares are to be offered for public
sale on behalf of the issuing company. Of the remaining
343,310 shares (all outstanding), 168,310 are to be of¬
fered by Bankers Securities Corp. and
175,000 by cer¬

corporate (purposes.

F. Dowd

(Bertner

(5/2-6)

shares

(R.

General Casting Corp

L.

Breeze,

&

Common

Inc. )

Magic Boats, Inc.——-———Debentures

Arthur! B., Hogan,
--

Co.,

&

Glass

—-___Common

Miller

General Development

Inc.
April 5 (letter of notification) 300,000 shares of com¬
mon stock of which 150,000 shares are to be offered to
promoters and 150,000 shares to the public. Price—$1
per share.
Proceeds—For working capital. Office—c/o

Vegas, Nev.

and

shares

Common
$600,000

shares

(Jerome Robbins & Co.)

if Alstonynx,

(j-a.

Mott

Forest

I., N. Y. Under¬
writers—Bear, Stearns & Co. and Allen & Co., both of
New York City.

To

(R.

(Leon

Park,

Co.

200,000

(Equitable Securities Corp.)

$750,000

Co.)

Waveguide Corp.___

Dade Metal

(R.

Proceeds—To reduce current indebtedness and for future

Lean

C. W. S.

Don

Properties, Inc. (5/2-6)
870,132 shares of capital stock, to be of¬
fered for subscription by holders of outstanding shares
of such stock.
Price—To be supplied by amendment.
Office—Floral

Co.)

&

Inc.)

Magic Boats, Inc.-

Greater

Securities

(Lloyd,

17 filed

operations.

&

Blauner

Circuitronics, Inc. —.1

All-State

March

•

Brooks

W.

Co.,

Glass

Co

75,000

porate purposes. Office—Arlington, Texas.

—Rauscher, Pierce & Co., Inc.,
offering has been postponed.

•

&

&

Debentures

Century Properties

300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For general cor¬

•

Burnell

Capital

Common

General Shale Products Corp.—

/

$750,000

Inc )

100,000 shares

& Co.)

Holman

Aluminum
(R.

Baltimore Paint & Chemical Corp.
(P.

G.

JR.

,

Deluxe

$1,800,000

Baltimore Paint & Chemical Corp
(P.

lnc.___

Deluxe Aluminum Products, Inc.—

Co.) $5,000,000
,

Baltimore

A.

Foods,
(A.

Debentures
(W.

Sons,

1

Becker

G.

(R.

•

;

Deltown

20,000 shares

Co.)

Inc.

&

Custom^ Craft Marine Co., Inc.—

$150,000

Common
(W.

Leonard

Corp.

(A.

Common

Co., Inc.)

Avis, Inc.
Avis,

(Peter Morgan

Class A

Systems, Inc

B.

$300,000

Common

Ralph

Pacific Plywood,

Carolina

shares

200,000

Co.)

$5,000,000

v

Applied Electronics Corp. of N. J

&

Corp

Common

$1,500,000

$7,980,000

Common

J. Mitchell Jr. Co. and

(G.

Hunt

RR.__—-Equip. Trust Ctfs
received.)

Bonbright

B.

Aviation Employees

Service, Inc

Allied

Bowling Centers, Inc.
Dec. 29 filed $750,000 of sinking fund debentures

be

(Monday)

April 25

(Monday)

American Telemail

(Milton D.

eligible employees. Office—2000 Oliver Building, Pitts¬
burgh, Pa.
/>"
v V

to

(George D.

Common

(Michael Fieldman) $279,664

.

^Allegheny Ludium Steel Corp.
April 11 filed 50,000 shares of common stock, to be is¬
sued in connection with the company's Thrift Plan for

Nashville

April 22 (Friday)
Raymond Corp.

$300,000

Corp

ISSUE

(Thursday)

&

Louisville

Common

Co

(Michael Fieldman)

Transworld

(B.

560,000 shares of com¬
mon
stock
(par $1) to be offered in exchange for
14,000,000 shares of common stock of Yucca Mining &
Petroleum Co., Inc., on the basis of one share of Albaro
for 25 shares of Yucca.
Office—634 N. La Brea Ave.,

REVISED

April 15

if Albaro Corp.

(letter of notification)

ITEMS

April 21

CALENDAR

ISSUE

•

PREVIOUS

(Bids

Jan.

March 31

Registration

NEW

of common stock (par 25

cents).

in

ADDITIONS

SINCE

Investment

Co.)

shares

Warrants
warrants

Co.__-_-CapitaJ
$1,600,000

.

Number 5942 :. .The Commercial and Financial Chronicle

Volume 191
:■

Corp.

AnHion-Emenee

<

{

Otarion

Corn.

noitn

;

r

'

/pmiif
(C>1U

Cathers & Co.)

$6,000,000

'

iULluu

Mutual Depositor Corp

Friendly

Frost

(Hecker

&

Goelet

$376,000

Common

Smithers

S.

(P.

(Ross,

Newark Electronics

H.

(Prank Karasik & Co., Inc.)

Precision Circuits,

Circuits,
A.

(Myron

(A.

Kenrich

& Co.)

Radiant Lamp

Kenrich

Ritter Finance
Smilen

Food

Forest

Missile

Industries,

Debentures

Sire

Plan

Preferred

(Dean Witter

&

Hammill
&

Co.)

Bradford

C.

J.

Teleregister Corp.
(Ladenburg,

&

Sutro

Co.,

:■£;

(Ladenburg, Thalmann
Sutro

Uranium

(A.

C.

&

Allyn

(Kuhn,

Co.,

&

>

May 3

Common

•

"
New
Tvr

May 4

&

1,400,000

shares
Common

Co.

Corp.)

Mays

1

(Merrill

Lynch,

EDI)

p.m.

Fenner

317,500

&

Smith,

Brown

&

Sons)

ynamic

Common

___.

shares

28,250

<nii
1

°n,

&

Co.,

&

Co.) $3,000,000

and

Common
Lazard

Freres

8c

•

„

.

,

Fjp„-

—

{Myron A. Lomasney 8c Co.) $600,000
National Realty & Construction Corp.—_Pfd.
Firof AT
(H- Hentz & Co.) 150,000 shares
National Realty & Construction Corp.—Com.
Firof at
(If HelUz & Co.) 150,000 shares
National Realty & Construction
Corp.-.War.
Forest
iH' H?lHz & Co-> iso.ooo
tsi ru
City Enterprises, Inc
——Common
FXR
r„
'Bache & Co.) 450,000 shires
Firof

at

,.

x-

-

r.

'

lnc'

-Debentures

~
-

(V.

E.

Unttvberg,

Com-

June

$300,000

Products,
&

Co.)

Portfolios,

shares

112,500

July 19

;*

&

Co.)

100,000

Brothers)

Brothers)

Co.)

$12,000,000

Bonds

$40,000,000

Telephone
be

11:30

invited)

Co.-

Debentures

$45,000,000

Bonds

EDT)

a.m.

$12,000,000

Preferred
$5,000,000

Bonds
to

be

invited)

$5,000,000

to

be

$25,000,000

of New

to be received)

(Tuesday) v

August 9

Preferred

.Bonds

invited)

(Tuesday)

(Bids

be

to

York

$50,000,000

Bonds
*

^

;

1

Light Co
invited)

Bonds

$6,000,000

(Tuesday)

(Bids to be invited)

Debentures

$100,000,000

September 13 (Tuesday)
Virginia Electric & Power Co

shares

Debentures

Bonds

(Bids to be invited) $25,000,000

Capital

November 3

shares

?

(Thursday)

Georgia Power Co
(Bids

$800,000

:

—

Southwestern Bell Telephone Co

shares

$6,000,000

120,000

shares

Debentures

invited)

New Jersey Power &

Common

Witter

360,000

Inc.)

(Wednesday)

Debentures
$225,000

4,500

be

to

(Bids

Common

Inc

Inc.)

Inc.)

Inc.)

Co.,

Co

14

$643,500

Isle, Inc

Portfolios,

Co.,

Consolidated Edison Co.

Common
Co.)

Bell

(Bids

Inc
Securities

Common

Northern Illinois Gas Co

Debentures

page

to

Bonds
be

»nvit*d)

$12,000,000

current

34

(4/15)

Molded Fiberglass Co.

Towbin




Co.)

—

Michael Fieldman, 82

filed

Land Co.

indebtedness incurred incident to the purchase
non-banking assets of The City Bank of Wash¬
ington, with the balance added to working capital for
general corporate purposes.
Office—734 15th Street,

3^0,000 shares are to be publicly offered. Price—$3 per
share. Proceeds—To^pay off mortgages, develop and im¬

properties,

A. J.
•

and

acquire

real

additional

estate.

St., New York City. Underwriter—
Gabriel Co., Inc., New York City.

Office—60

American
30

42nd

E.

Penn

filed

Life

Insurance Co.

registration of 127,500 shares of capital

105,000 shares of the stock will be three additional shares

share?held. Of the remaining 22,500 shares
offering will be on the basis of nine shares for each
shares held, and all unsold shares of this block will
offered under warrants granted in accordance with

be

one

company's Agent's Stock Option Plan. Price—$28
per share. Proceeds — To increase capital and surplus.
Office—203 S. 15th St., Philadelphia, Pa.
Underwriter—

$2,000,000

'

None.

American Security Corp.

.

;

(5/2-6)

of capital stock (par $2).
affiliate of American Security &
Trust Co. by reason of the fact that each of their stock¬
holders owns the same number of outstanding shares of
each entity. It is proposed to offer the 100,000 shares of
American Security stock and a like number of shares of
the $10 par capital stock of the Trust Company in units
of one share of stock of each issuer; and the units are
to be offered for subscription by stockholders of each
issuer at the rate of one new share for each five shares
held. Price—To be supplied by amendment. ProceedsAmerican Security will use its proceeds in part to repay
March 28 filed
The

company

100,000 shares

is

an

(5/16-20)

April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th St.,
New York, N. Y. Underwriter—D. H. Victor & Co., Inc.,
New
•

York, N. Y.

American Telemail Service,

Inc. (4/18-22)
shares of common stock. Price—$4.00
per share.
Proceeds—For establishing airmail facilities
at airports. Office—518 Felt Bldg., Salt Lake City, Utah.
Underwriter—Edgar B. Hunt Co., New York City.
Dec. 8 filed 375,000

(par $10) to be offered for subscription by stock¬
1960. Subscription rate on

for each

N. W., Washington, D. C. Underwriters—Alex Brown &
Sons, Baltimore, Md.; Folger, Nolan, Fleming-W. B.
Hibbs & Co., Inc. and Johnston Lemon & Co., Washing¬
ton, D. C.; and Kidder, Peabody & Co., New York.

-A-American Stereophonic Corp.

538,000 shares of common stock, of which

Co.)

u~i
400 000 shares
-Hokm &
Galvan, Inc.—
-———-Common
(VT°n Alstyne, Noel & Co.) $1,325,000
.Burette, Ltd
....Common

Etc

July 13
Common

$520,000

Corp.)

to

(Bids

$175,000

Corp.)

Co.)

Inc.

(Bids to be invited)

Debentures

the

—.Common

—

Inc.

$420,000

Gulf Power Co

$192,500

American & St. Lawrence Seaway

14

Industries, Inc..—

Read

Inc.)

$2,336,960

(Thursday)

Gulf Power

Common

the

(Morris Cohon & Co.) $300,000

'

July 7

Common

holders of record on April 28,

Common

Films, Inc.—
,

Co.,

Corp.)

(Tuesday)

(Bids

shares

152,698

Corp.)

&

Co.

Washington Gas Light Co

Capital

(letter of notification) 300,000 shares of common

Jan. 27

stock

May 9 (Monday)
Uworman Corp.
Charles Plohn

8c

—Common

(Thursday)

(Bids

50,000 shares

Inc..

Paterson, N. J. Underwriter
Beaver St, New York, N. Y.

March

Inc.)

shares

May 6 (Friday)
Maryland Credit Finance Corp.(Alex

Parks

&

Ripley &

(Bids

shares

(par 10 cents). Price—$1 per share.
Proceeds—
general corporate purposes.
Office—85 Fifth Ave.,

$4,650,000

——.Common
Pierce,

shares

Southern Electric Generating Co

Class A

from

American

prove

St. Paul &

Equip. Trust Ctfs.

'Bids 1
(J. W.), Inc

Fnalnu

.

(Wednesday)

/Tv

•

'-

v

Capy;al

shares

110,000

Pacific RR.
M

Continued

For

Common

_

Chicago, Milwaukee,

Plan

June 2

June 7

stock

Jersey Aluminum
(Laird

410.206

Co.i

Inc

Hammill

(Lehman

Jan. 29

Weld & Co., Inc.) 300,000 shares
Extrusion Co, Inc.

'

t

shares

400,000

TV

Co.—

660,000

of the

(Tuesday)

Finance

$650,000

Class A

(Harriman

Co.)

$20,000,000

Co.)

Columbia Gas System, Inc
<Bids 3:45 p.m. EDST)

Dial

Co.)

shares

200,000

Inc.)

Co.)

&

&

1;.

'

„

.

Buildings Corp..
(Kuhn, Loeb

&

Viewlex, Inc.

Debentures

Loeb

Common

Lomasney

..Common

Uris Buildings Corp
Uris

shares

420,945

and

Co.

&

shares

Co._

&

Common
$750,000

Common

Stearns

Bear,

240,000

A.

(Harriman Ripley &

Northwestern

&

Inc.)

(Stanley Heller &

______

Co.,

Bros.)

Reduction

Co.)

Wallace Properties, Inc.-

$1,600,000

United Financial Corp. of California.s

and

Co.

&

Bonds

$7,000,000

Common

underwriting)

Wallace Properties,

.

Normandy Isle, Inc

rL;

$6,000,000

Bros.)

Teleregister Corp.

Stearns

Bear,

Co.,

Securities

(Lehman

Debentures

Thalmann

Walker

United Financial Corp. of California

shares

120,000

&

Morgan

Plan

(Dean

Common
and

Co.

&

'

Telecomputing Corp.

shares

100,000

Co.)

.Spartans Industries, Inc.
(Shearson,

of

(Sire

Telephone Co

Lomasney

A.

Everett

Common

Precision

(Sire

(White, Weld & Co.) $13,500,000

Southern Nevada

time)

Broadcasting & Development Corp

Common

Philadelphia

(Shearson,

Inc

$900,000

(Tuesday)

(G.

..Debentures

Sire Plan of Normandy

shares

200,000

Co.)

&

Y.

$100,000

Walker & Co.)

G. H.

McDonald

Electronics,

Simmonds

Common

Stonehill

Inc.)

Medallion Pictures Corp

Co.)

$1,500,000

Inc.)

Co.,

Philadelphia

(Peter

Debentures

Co.,

Treat

(Pleasant

Stores, Inc

(Federman,

Southwest

&

N.

a.m.

(Reynolds & Co.i

Common

Inc. and G. H.
1,000,000 shares

(Hancock

Co., Inc

(Stroud

$825,000

Inc..,

Industries,

$600,000

Inc.)

Inc.)

Corp.

and

Reeves

Corp.-.

&

and

Co.

(First

Class A
Co.,

Co.,

Patrick County Canning Co., Inc

Petrochemicals, Inc

Lite-Vent

Bolger &

and Shillinglaw,
$1,738,000

Treat &

&

Common

Corp

(Amos

Hough,

(First

$250,000

Inc.

&

(Tuesday)

Futterman

Common

Debentures

Petrochemicals,

Debentures

Inc
Lomasney

Allyn & Co.,

C.

&

(Amos

.....Common

Pyramid Mouldings, Inc

$225,000

Systems, Inc

May 31

35,000

Beryllium Co

Debentures

Inc

11:00

(Myron

$20,000,000

Industries, Inc
(Williap R. Staats & Co.)
Electronic Assistance Corp

(Myron A. Lomasney & Co.) 37,500 shares

Precision

Inc.)

Dymo

Hooker & Fay, Inc.) $2,500,000

Co. and

May 31

Common

Inc. and

Homes,,

(Kuhn, Loeb

$450,000

Oil Corp

Pacific Vegetable
(Dean Witter &

Brush

M.

Common

Co

Panel

Pacific

Shell
(Beil

Debentures

to

Co.)

Common

Sloss

(Laird

Victor

200,000 shares

Co

stockholders—underwritten by
Byllesby & Co., Inc.) $450,000

(Offering

Class A

&

(Friday)

Trans Tech

$200,000

invited)

Bruce

Corp

(No

shares

O'Neill & Co., Inc.

Lomasney & Co.)

A.

H.

(Beil 8c Hough,

Bevis

Common

Byllesby & Co., Inc.)

M.

Ott Chemical

70,000

Bevis Shell Homes, Inc

Corp

May 27

$700,000

Co

to be

Stereophonic
(D.

$1,000,000

Co.)

Inc.)

Globus,

and

Roman & Johnson)

(Myron

American

—-Debentures
&

Witter

Inc.)

May 16 (Monday)
Aero Industries, Inc.-

shares

461,431

Hopwood)

(Dean

Globus,

George,

by R. W. Pressprich
145,703 shares

Co.)

North Central Co

Chemicals, Inc

Telephone

Piper, Jaffray &

and

Inc.

Co.,

&

8c

"

Common

Nalley's, Inc.

(H.

Wisconsin

Common

Rhoades & Co.

Loeb,

(Carl M.

Electric

Warrants

_

$1,250,000

Marquette Corp.

and

Riter

and

(Myron

$287,500

and Globus,

Co., Inc.

Lyon

78,000 shares

& Co.)

Smithers

S.

Co.

Common

Jeffrey-Robert

and

.—Common

&

May 25 (Wednesday)
Esquire Radio.
Electronics, Inc

Bonds

Common
&

(Bids

Co., Inc

Magnin (Joseph)
(F.

Co.)

&

Inc.

(Security Associates, Inc.;

—-Debentures

Co., Inc.—

Maenin (Joseph)

Corp.

$298,500

(Monday)
stockholders—underwritten

(Marron,

shares

;

Common.

Inc.)

May 24 (Tuesday)
Jersey Central Power & Light Co.—J

$12,000,000

PST)

Co.,

&

$1,650,000

Corp.

shares

75,000

Co.)

200,000

Co.)

a.m.

Co.,

Nuclear Research

Shields & Co. and C. E. Unterberg,

Corp.;
Towbin

Inc.)

Rubin

(Whitmore,

Sierra

—Class A
Co.,

$544,810

Miller & Van Winkle Co.—

$700,000

Common

Securities

Lyon &

Common

Hieainson

&

Co.)

to

Debentures

Lyon

Goelet

Hydra-Power Corp.
—
Debentures
(Aetna Securities Corp. and D. Gleich Co.) $600,000
/Tpe
1

Inc.)

Corp.

(Ross,

Ionics, Inc.

$300,000

Common

Corp.)

90,000 shares

& Co.)

Witter

(Dean

Co.)

Co.,

Corp.

(Ross,

Products Co.

Hawley

(Mainland

Goelet

Units

Inc.)

&

&

Chemical & Film Corp

(Offering

Common

Chemical Packaging Co., Inc

$1,125,000

Co.,

&

Morton

C.

IB

9

^

Gardens Associates

FTimDshire

&

May 23
Anken

$12,000,000

(Tuesday)
(Bids

Common

underwriting)

(No

Kletz

G.

(Simmons,

Bonds

&

Bonds

$22,000,000

(Thursday)
Harburton Financial Corp.—

$567,000

California Electric Power Co

$292,500

Co.)

Bruce

EDT)

a.m.

-

(Wednesday)

(Bids

Common

Inc

18

11

*

Co.—

(Harrison

1

Fennekohl

Light

May 19

shares

Manufacturing Co

May 10

Common

Founders

Co.)

EDST)

noon

(Shields

i >,

shares

800,000

Co.)

&

(Jaffee

May

...Common
50,000

System, Inc

(Michael

Zero

'v./

Builders, Inc.—

Florida

Yale Express

Debentures

and Brawley,

Sons

&

Lawrence

J

Gas

General Atronics Corp.___—___ _______...Common

...Common

Lomasney &

12

(B.

shares

Manufacturing Co.__

Harrington

Milwaukee

$750,000

Inc.)

Corp

A.

(Richard

——Common

200,000

Co.)

&

(Allen

Co.)

Co.,

United States Boat Corp

134,739 shares

underwriting)

(No

&

8c

Squan Marina, Inc.—.

Common

■

Chemicals, Inc

Dubois
^uu

Listener

(Bids

Inc
Common
Smith, Barney & Co.) 909.659 shares

Airlines,

Brothers and

nman

(Tuesday),

May 17

Co.)

(Bids

Pennsylvania Electric Co

Common

$300,000

iMandell & Kahn, Inc.)

Brooks

W.

Sullivan

(D.

shares

Pools, Inc

ranital

Richter

Welders, Inc.——

(Bosworth,

and Mackay & Co.)

Inc.

Co.,

&

400,000

L

(P.

OK Rubber

Preferred

Murphy

'

Common

i
Scherck;

and

shares

—

and Mackay & Co.)

Inc.

Co.,

Murphy &

Inc.

,

400,000 shares

Pparson

Co.,

&

General Aeromation, Inc
Common
(Westheimer & Co.) $253,350
Litecraft Industries, Ltd
—.Debentures

Inc. and Bertner Bros.)

Laurel, Inc

Cabana
U°

Sullivan

loO.OOO

Inc.——--—-—-Common

Laurel

/pparson.'

International, Inc

(Bosworth,

shares

100,000

1

D B

Gem

-Common

—

Schroeder & Co.,

<Pistell

35

«,

Sc Sons; Folger, Nolan, Fleming-W. B.
Inc.; Johnston, Lemon & Co. and
Kidder, Peabody & Co.) 100,000 shares

1

(1651)

Co.,

Sc

Hibbs

.

|

.

Brown

/Alex

^

•.

-

Security Corp.—..———r—Capital

American

^

1

.

^ Anken Chemical & film Corp. (5/23)
April 7 filed 145,703 shares of common stock, to be
offered for subscription by holders of outstanding com¬
mon

stock

shares

at

held.

the
Price

rate
—

of
To

new

one

be

share

supplied

by

for

each

six

amendment.

Proceeds—$1,950,000 will be applied toward the purchase
of certain properties and assets of the Sperry Hand
Corp.;
loans;
Office
R.

W.

$140,000 will be used to retire short-term bank
and the balance for general corporate purposes.
1 Hicks Ave., Newton, N. J.
Underwriters—

—

Pressprich

&

Co.

and

Riter

&

Co.,

both

of

New York.

Applied Electronics Corp. of N. J. (4/18-22)
11 filed 200,000 shares of class A stock (par 10
cents). Price—-To be supplied by amendment. Proceeds—
$45,000 is to be used for the purchase of stock of Diver¬
sified Industries Corp.; $33,000 for repayment of indebt¬
edness owing to management officials; $150,000 for the
establishment of laboratory and sales facilities in Dallas
and sales and service facilities in Los Angeles; $200,000
March

Continued

on

page

36

36

The Commercial and Financial Chronicle

(1652)

Continued from page 35

for work¬
ing capital.Office—22 Center St., Metuchen, N. J. Under¬
•

Audion-Emenee

Bowers

March 29 filed 280,000 shares of common

Co., New York.

$1).
For
working capital. Office—New York City. Underwriters

•

Australia

$25,000,000

of 20-year bonds, due

to

April

15, 1980. Price—To be supplied by amendment. Proceeds
—To be added to the Commonwealth's

and the Australian

international

re¬

equivalent thereof
expenditures be¬
ing financed under the borrowing program for 1959-60
approved by the Australian Loan Council for the Gov¬

serves;

currency

will be applied towards capital works

ernments

of the

Commonwealth and the States. Under¬

writer—Morgan Stanley & Co., New York.
•

Automation Systems,

•

12

Inc.

(4/25-29)
/
2,500,000 shares of common stock. Price—$2
per share. Proceeds—Together with other funds, will be
invested in the shares of the company's three
sub¬
sidiaries; for general corporate purposes; and the re¬
maining balance will be used from time to time for
the purchase of all or a substantial interest in or the
the

or

other

more

business of insurance

or

or

suant

Inc.

•

Proceeds

—

The

one

or

more

anticipates

that

a

investments in

or

March

outstanding borrowings under a 6%- revolving credit
Office—18 Irvington Street,
Boston, Mass. Under¬
Co., New York.
• B T U Engineering Corp (4/19)
March 31 (letter of
notification) 100,000 shares of com¬
(par 10 cents).
tract of

a

10th St.,

Price—$3
land and

per

•

1

(4/18-22)

$750,000 of sinking fund debentures,
series, due 1975 with eight-year warrants for the
purchase of 22,500 common shares at the rate of 30

stock

Kahn,
New

150,000

Price—$2

corporate

purposes.

Street, New York 1, N. Y.

per

shares

share.

of
W.

March

com¬

mon
*

30

31st

Jan. 26 filed 909,659 shares of common
stock
one additional share for each
share

of

mon

to

expire 14 days after offering date.
.broaden equity base. Office

sinking

shares,

to consist of five

and

one

for

general

corporate

purposes.

Underwriters—G. H. Walker
Beil

&

Hough, Inc.

of

managers.

Big Laurel, Inc.
arch 22

Jan. 22 filed
per

capital.

•

Office—Tampa,

Pacific Plywood,

Feb.

29 filed 100,000 shares of
capital stock (no par).
Price—To be supplied by
amendment. Proceeds—To in¬
the company's

working capital and to aid in fi¬
nancing log inventories at peak periods.
UnderwriterPeter Morgan & Co.. New York.

preferred

•

Century Properties

struction costs

$500,000 of 6% convertible
subordinated

APril 3°.. l975- Price—At
incurred

to

par. Proceeds
augment working

(4/18)

March 31 filed 75,000 shares of
common stock (par
$1).
Price—To be supplied
by amendment. Proceeds—For re¬
payment of unsecured bank
loans; for payment of the
balance of a down
payment on the purchase
price of
property in Ventura, Calif.; to
pay the balance of con¬

Birtcher Corp.
March 29 filed




Inc. Medford, Ore.

crease

-

loans

Everett

(4/25-29)

Co., New York City
St.
Petersburg, Fla., as co-

of 7% cumulative

Speedway, Inc.

r

of

rate

(par $1), to

stockholders of record Feb. 15
at
shares for each 3 shares then
held.

common

2

new

Price—$2 per share, initially; after 15 days from the of¬
fering date, the underwriter will offer unsubscribed
shares

to purchasing stockholders for an additional
10
days, after which such shares may be publicly offered.
Proceeds—For. construction of a speedway and its ac¬
cessories. The issuer expects to stage its first stock car
race in May.
Office—108 Liberty Life Building, Char¬

lotte, N. C. Underwriter—Morrison
Offering—Imminent.

&

Co.,

Charlotte.

k

*

on

Packaging Co., Inc. (5/10)
(letter of notification) 115,000 shares of com¬
mon stock
(par 10 cents). Price—$2.50 per share. Pro¬
ceeds— For general corporate purposes.
Office
755
Utica Avenue, Brooklyn, N. Y. Underwriters—Mainland
Securities Corp., 156 N. Franklin Street,
Hempstead, N.
Y. and Jeffrey-Robert Corp., 382 S. Oyster Bay
Road,
Hicksville, L. I., N. Y.
—

Cincinnati

building in Torrance, Calif, and for
working capital. Office—1738 S. La
Cienga Boulevard,
Los Angeles, Calif.
Underwriters—Pacific Coast Securi¬
ties Co
of San
Francisco, Calif, and Arthur B. Hogan,
Inc. of
Burbank, Calif.
*
*
a

.

22

Gas

&

Electric

Co.

(4/28)

filed

$30,000,000 of first mortgage bonds due
May 1, 1990. Proceeds—To be used to finance a portion of
the company's construction program, to repay $4,000,000
of bank

notes, and for other corporate

purposes. Under¬

writer—To be determined by competitive
able bidders: Halsey, Stuart & Co., Inc.;

bidding. Prob¬

Morgan Stan¬
ley & Co. and W. E. Hutton & Co. (jointly); Blyth &
Co., Inc. and The First Boston Corp. (jointly); Merrill
Lynch, Pierce, Fenner & Smith Inc. and Lehman Broth¬
ers
(jointly); Eastman Dillon, Union Securities & Co.
and White, Weld & Co. (jointly). Bids—Expected to be
received on April 28, up to 11:00 a.m.
(EST), at the
Irving Trust Co., One Wall Street, New York City.

Circle-The-Sights,

Inc.

March 30 filed 165,000 shares of common stock and $330,000 of debentures (10-year 8 % redeemable). Price—For

stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
service.

Office—Washington, D. C.

Underwriter—None.

•

Circuitronics, Inc. (4/18-22)
Feb. 9 (letter of notification) 75,000 shares of class A
common
stock
(par one cent).
Price—$4 per share.
Proceeds—For general corporate purposes,; Office—121
Varick Street, New York, N. Y.
Underwriter—Lloyd,
Miller & Co., 2605 Connecticut Avenue, N.
W., Wash¬
ington, D. C. " -yH'y
CoSanco,

Inc.
(letter of .notification) 300,000 shares of pre¬
ferred (no par), seven cents per share dividend paying
after March 1, 1962,
non-cumulative, non-voting stock.
Price—$1 per share. Proceeds—To purchase land and
Jan.

for

19

development

and working capital.
Office—3395 S.
Street, Englewood, Colo. Underwriter—Diver¬
sified Securities, Inc., Englewood, Colo. Note—This state¬
ment is being amended. Offering—Imminent.
Bannock

it Colgate-Palmolive Co,
April 8 filed $3,000,000 of participations in its Employees
Savings and 11nvestment Plan, together with 54,237
shares of
to

common

said

plan.

stock which

Office—300

may

be acquired pursu¬

Park Avenue, New

I

York

r

Columbia
March

25

Gas

filed

System, Inc. (5/3)
1,400,000 shares of common stock

(par
$10). Proceeds—Together with other available funds, in¬
cluding funds generated from operations during 1960 and
funds to

will

be

be

obtained from additional financing in

1960,

used

to satisfy the demands in 1960 upon such
general funds, including particularly the 1960 construc¬
tion program of Columbia Gas
subsidiaries. Underwriters
—To be determined by
competitive bidding.
Probable
bidders: Halsey, Stuart & Co.,
Inc.; Merrill Lynch Pierce,

Fenner &

Smith Inc. and White, Weld & Co. (.-jointly);
Stanley & Co., Lehman Brothers, Eastman
Dillon, Union Securities & Co. and Goldman, Sachs &
Co. (jointly). Bids—To be received on
May 3 up to 3:45

Morgan

New

p.m.

29,

by

42nd

Price—$2

operating funds and working
Office—381 Fifth Avenue, New York
City. Un¬

Carolina

&

f

oank

To

Parks &
Co., Inc., and Sulco
Securities, Inc., both of 52 Broadway, New York
City.

son

^ ^

—

$52,860 of 6%

the balance for

derwriters—G.

\♦400,000 shares of common stock
WH on?
£
°ffered in units of one share of preitLn
£ °ne s, are of comm°n. Price—$3 per unit. Pro£P a res^ community and for working
7"nryST°n C^y' N* C" Underwriters—PearCo,' Readkig Pa
Y°rk CUy' 3nd Mackay &

i

500,000 shares of common stock.
Proceeds—For retirement of

share.

notes and

(5/2-6)

^^ 490,000 shares

fnar iftPar

Proceeds

—

com¬

m,

Fiat.

the basis

on

held, with rights

Washington National
Airport, Washington 1, D. C. Underwriters
Lehman
Brothers and Smith,
Barney & Co., New York, N. Y.
•
Captains Club, Inc. (4/19)

$8 par debenture, and warrants for the
purchase of two additional units of one
common share
and one $8 debenture at
$9.50 per unit.
Proceeds—$2,000,000 will be used to increase the
company's holdings
of mortgages placed on the
shell homes it
sells; and $1,to ke u?ec* to increase its holding of mortgages
will be placed in escrow
for that purpose; and the bal¬
ance

the

City.

—

and

unit, each unit

per

(5/10)

May 10, in the offices of O'Melveny & Myers, Room
900,
South Spring
Street, Los Angeles 13, Calif.
Capital Airlines, Inc. (5/2-6)

1,000,000 shares of com¬
stock, to be offered for public sale in units
(200,-

000), at $15.50

Electric Power Co.

433

Shell

debentures due 1985

Charlotte IVIotor

be offered to

ant

Tuesday,

Underwriter—A. J. Gabriel

Homes, Inc. (5/16)
filed $1,600,000 of 9% subordinated

Center,

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.; White, Weld & Co. Bids—
Expected to be received up to 9 a.m. (PST) on

'

fund

Rockefeller

tion program.

Co., Inc., New York, N. Y.
Bevis

Building,

April 5 filed $12,000,000 of first mortgage bonds, series
due in 1990.
Proceeds—To discharge short-term bank
loans of some $9,500,000 and for the
company's construc¬

Proceeds

Office—4

Inc., Time-Life
York, N. Y.

California

Annapolis
Underwriter—P. W. Brooks &

(par 10 cents).

general

stock (par 10 cents).

—

specified.

—For

•

Cabana

—

Beltone

mon

Telecomputing Services acquisition,

C. W. S.

mon

Prices—For the debentures, at
par; for
the preferred, $20
per share. Proceeds—For general cor¬
porate purposes including repayment of
loan, purchase
of land,
construction, purchase of machinery and equip¬
ment, and for working capital. Office—2325

,

the

March 31

$20) and (c) $750,000 of 6J/4% first mortgage
bonds, due
1972, sold to New York Life Insurance Co., along with
12-year warrants granted said insurance
company to
purchase 15,000 shares of the issuer's common at a
price

29

of

Pools, Inc. (5/2-6)
(letter of notification) 150,000 shares of com¬
Price—$2 per share. Proceeds
For general corporate
purposes.
Office —640 Fifth
Avenue, New York, N. Y.
Underwriter
Mandell &

(b) 90,000 shares of
preferred stock (par

Feb.

supplied by amendment.

Waveguide Corp. (4/18)
(letter of notification) 300,000 shares of corrimon
stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For general corporate purposes.
Office—301 W.
Hoffman Ave., Lindenhurst, N. Y. Underwriter—R. F.
Dowd & Co., Inc., 39 Broadway, New York
6, N. Y.
•

shares for each $1,000 of
debentures;
§Vz% cumulative convertible first

Recording Corp.
(letter of notification)

be

March 9

6V2

Avenue, Baltimore, Md.
Co., New York City.

stock.

ment.

share. Proceeds

—Clayton Securities Corp., Boston, Mass.

to be

A voting

arid the balance will be applied to "other phases of the
program."
Office—1200 Jefferson Davis Highway, Ar¬
lington, Va. Underwriter—To be supplied by amend¬

working capital.
Wilmington, Del. Underwriter

Baltimore Paint & Chemical
Corp.
Jan. 22 filed (a)

122,000 shares of class

Proceeds—To be used to the extent necessary to defray

for

•

Price—$3

bank

Inc.

filed

the full cost

writer—W. E. Hutton &

purchase
Office—100 W.

30

four shares held. Price—To

of

stock

repay

by holders of outstanding class A voting and class B
non-voting stock, at the rate of one new share for each

loan.

mon

Proceeds—To

The company proposes to offer this stock for subscription

portion of the proceeds to the acquisition of additional
businesses and to the prepayment of past Qf its out¬
standing long-term debt and to the temporary reduction

—To

share.

C-E-l-R,

of its subsidiaries for their general business
addition the company may also apply a

In

purposes.

(4/18-22)

loan; for manu¬
of magnetic amplifiers; for establishment of a
new
crystal filter division; for the purchase of new
automatic winding and testing and production equip¬
ment; and for working capital. Office—10 Pelham Park¬
way, Pelham Manor, N. Y.
Underwriter — Milton D.
Blauner & Co., New York.
per

I

company

Co.

Feb. 15 filed 200,000 shares of common stock.

(4/18-22)

portion will be used for advances to

Burnell &

facture

March 1 filed $5,000,000 of subordinated convertible de¬
bentures, due April 1, 1970, and 200,000 shares of com¬
mon stock
(par $5). Price—To be supplied by amend¬
ment.

thereto.

to further sup¬

Ralph B. Leonard

Sons, Inc., of New York City.

•

Jan. 21 filed 304,000 shares of common stock

March

April 6 filed $300,000 of Participations in the company's
Employees' Stock Option Plan, together with an un¬
specified number of common shares to be offered pur¬

Tower Bldg., Washington, D. C. Underwriters—G. J. Mit¬
chell Jr. Co., Washington, D. C.; and

Avis,

—Columbus, Ohio. Underwriter—Commonwealth Secu¬
Corp., Columbus. Offering—Imminent. ;

rities

March 16

it Burndy Corp., Norwalk, Conn.

plement the funds of the three subsidiaries. Office—930

&

(5/16-20)

—

companies engaged in

finance

an

common stock, of which
260,000 shares are, to be offered for the account of the
issuing company and 150,206 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof.
Price — To be supplied by
amendment. Proceeds
For expansion.
Office—Cleve¬
land, Ohio. Underwriters—Kuhn, Loeb & Co., New York
City, and McDonald & Co., Cleveland.

Aviation Employees Corp.

one

year;

expended either by

April 11 filed 410,206 shares of

Feb. 8 filed

of

of the

end

be

it Brush Beryllium Co*

(letter of notification)

formation

and

Chemical

(4/18-22)
150,000 shares of com¬
mon stock
(par 25 cents). Price—$1 per share. Proceeds
—For general corporate purposes.
Office—150-34 12th
Avenue, Whitestone 57, N. Y. Underwriter—B. Fennekohl & Co., Inc., New York, N. Y.
Feb.

stock (no par),

additional $250,000 is expected
the company or through its
subsidiaries for the improvement of certain of its manu¬
facturing facilities, such as additional mechanization and
material control handling and for experimental work in
connection with beryllium; and the balance of the pro¬
ceeds will be added to the company's general funds. Of¬
fice—Reading, Pa.
Underwriter — Dempsey-Tegeler &
Co., St. Louis and New York. Offering — Expected in
early May.
the

(4/20-21)

(Commonwealth of)

filed

31

share

per

shares of class A stock ($10 par)
250,000 shares of class B stock (20c par), to be
offered in units of one share of each class of stock. Price
—$20.20 per unit. Proceeds—To pay mortgages. Office
and

selected employees at

—Pistell, Schroeder & Co., Inc., and Bertner Bros., both
of New York City.
March

$6

Thursday, April 14, 1960

.

Jan. 26 filed 250,000

30,000 shares will be offered to
$5.40 per share.
Proceeds — Be¬
tween $200,000 and $300,000 is expected to be expended
before 1961 for starting up costs, including initial rents
of the new plant in the southeastern portion of the
United States which it hopes to obtain and open before
at

March 29 filed 100,000 shares of common stock (par
Price—To be supplied by amendment.
Proceeds —

.

Credit & Thrift Corp.

Certified

—

will be offered for public sale

which 250,000 shares

of

(5/2-6)

Corp.

Los Angeles, Calif.

—

Quincy Cass Associates, Los Angeles,

for research and development; and the balance
writer—S. D. Fuller &

Underwriter
Calif.
Battery & Spark Plug Co.
^V

Office

capital.

.

York

Time.

appointment

at

Information—On
the

company's

April 28 and
office, 120 East

Street, New York.

Commerce Oil Refining Corp.
Dec. 16, 1957 filed
$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and
3,000,000 shares of common stock to be
offered in units as follows:
$1,000 of bonds and 48 shares
of stock and $100 of debentures
and nine shares of stock.

Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman
Brothers, New
York. Offering—Indefinite.
Consolidated Realty Investment Corp.
March 11 filed 2,000,000 shares of common stock. Price
—$1 per share.
Proceeds—Of the proceeds, $1,226,500
will

be

as

reserve

a

for

used

for

for

the acquisition of
properties, $300,000
development expense, and the balance

working capital and other corporate purposes. Office
Lincoln Ave., Little
Rock, Ark. Underwriter—
The Huntley Corp.

—1321

Constellation Life Insurance Co.
\
March 29 filed 1,350,000 shares of common
stock, of which
350,000 shares will be reserved for stock options, 150,000
shares will be offered i to\ holders of the outstanding
.

common

on
a
"first-come-first-served" basis at $3-25
share, and 850,000 shares will be publicly offered.
Price—$3.50 per share.
Proceeds—To
general funds.

per

191 'Number $942

Volume

Norfolk, Va.

.

Underwriter

.

.

—

The Commercial and

Willis, Kenny &

Richmond, Va. ■
Continental Electric Co
Feb 11 filed 260,000 shares of common stock (par $1).
Inc.;

es,

be .supplied by amendment.
Proceeds—To
outstanding bank loans, for expansion and develnmpnt of new products, and for working capital. Office
715 Hamilton St., Geneva, 111. Underwriter—Old Colinvestment Co., Stoneham, Mass.

Financial Chronicle

ceeds—To be added to the company's general funds and

present

will

ceeds—For

Q^dft, Inci
(letter of notification) 79,727V2 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—For
remodelling a factory, warehouse, purchase of equipiTpnt tools, raw materials and working capital. Address
i

Disc, Inc.
March 29 filed 2,221,017 shares of class A common stock.
About 1,736,943 shares are to be exchanged for the

N. D.: Underwriter—None.

cosmopolitan Insurance Co*
March 30 (letter of notification) 58,000 shares of capital
stock (Par $1). Price — $5 per share. Proceeds — For
general corporate purposes.
Office—4620 *N. Sheridan
Road Chicago, 111. Underwriter—Link,- Gorman, Peck
6 Co., Chicago, 111.'
l

Cantor

Dade Metal

Fabrications, Inc. (4/18-22)
March 22 (letter of notification) 200,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share. Proceeds
—To purchase land and erect a plant, additional tools,
machinery and
equipment,
and for
other working
materials.

Office—4798

Tenth

Lane, Hialeah, Fla. Un¬
derwriter—R. A. Holman & Co., Inc., New York, N. Y.
•

DaCto

Corp.

(5/2)
134,739 shares of common stock, to be
offered for subscription by holders of such stock of
record May 2 at the rate of one new share for each
two shares then held with rights to expire on June 3.
March 29 filed

Price—To be supplied by amendment. Proceeds—For the
retirement of notes and additional working capital Office

—Norwood, N. J. Underwriter—None.
Dart Drug

behalf of the issuing company and 30,000 shares, be¬

on

ing outstanding stock, on behalf of the present holders
Price—$5 per share. Proceeds—For repayment
of corporate indebtedness
and for working capital. Office
—5458 Third St., N. E.,
Washington. D. C. Underwriter—
Hodgdon & Co., Washington, D. C.
thereof.

•

Deltown Foods, Inc. (4/25-29)
filed 115,000 shares of outstanding common
(par $1). Price—To be supplied by amendment.
Proceeds
To selling stockholders.
Office—Yonkers,
March 22
stock

•

■/ ' '■

:

Don

Underwriter—A. G.

Becker &

Co., Inc., New York

Lity...

Mott

•

Dubois Chemicals,

(4/25-29)

I5 filed $330>000 of convertible debentures, and 70,es

of

common

stock. Price—For the debentures,

hJ0% of
principal amount; for the stock, $5 per share.
Proceeds—From 10,000 shares of the common stock, to

jhe present holders

jpgr to the

thereof; from the rest of the offer-

company to be used for expansion and as
Office—6810 S. W. 81st St., Miami, Fla.

working capital.

Underwriter—R.

A. Holman & Co., Inc.

March 30 (letter of
notification) 80,000 shares of class A
common stock
(par $1) to be offered to holders 6f a
oouble option life insurance
policy and 30,000 shares
ot
class B common stock

(par $1) to be offered to
company's salesmen. Price—$2 per share.
s~~For surplus and capital accounts. Office—
Central Ave., Phoenix, Ariz. Underwriter—None.

pertain °f the
at

N.

Tvr^euVe'opment

Credit Corp. of Maryland
«iTn29 filed 2>000,000 shares of common stock. Price
^-91.10 per share. Proceeds — For general corporate
Purposes.

Underwriter—None.

D«al Finance

Co. (5/3)
.
.
.
t-25 filed 300,000 shares of common stock (no par),
hr.
r(ling 150,000 shares which are outstanding and will
th«°
d for Public sale by the holders thereof, and
ao
remaining 150,000 will be offered for the company's
M

(5/2-6)

count.

Price—To

be

supplied



by

amendment.

Pro¬

balance

of the

proceeds of approximately $594,750
working capital. Office—20 Bridge Ave.,
Bank, N. J. Underwriter—Amos Treat & Co., Inc..

Red

New York.
)•

Englehard

Industries,

Inc.

(5/9-13)

Mar. 30 filed 400,000 shares common stock
(par $1). Price
—To be supplied by amendment.
reduce

and

outstanding

•

to

&

amount

of

Proceeds—$2,000,000
notes, and the

term

reduce

outstanding short-term indebtedness
working capital.' Office—Newark, N. J.

increase

Freres

—

Dillon, Read &

Co.

Inc., and 4Lazard

Co., both of New York City.

Esquire Radio & Electronics, Inc.

(5/25)

March 30 filed 150,000 shares of common stock
(par 10c).

share. Proceeds—$73,000 will be used to
replace funds used by company for payment of subordi¬
nated notes; $50,000 to repay short-term bank
obliga¬
tions; and the balance of approximately $477,000 will be
per

added to working capital and used for general corporate
purposes, including financing
rial inventory. Office—39

of finished and

raw

mate¬

Broadway, New York. Under¬
writer—Myron A. Lomasney & ,Co.
Ets-Hokin

.

&

March 28 filed

Price—$5.30

Galvan, Inc. (5/9)
250,000 shares of common stock (par $1).

company's Restricted Stock Option Incentive Plan for
key employees. Price—To be supplied by amendment.

share. Proceeds—To be added to com¬
pany's working capital and will be used principally to
reduce some $1,000,000 of its accounts
payable. The bal¬

Proceeds—To reduce

ance

the

a

bank loan in the amount of

$2,Under¬

681,000.

Office—634 Broadway, Cincinnati, O.
writer—Allen & Co., New York.

ic Durox of Minnesota, Inc.
April 11 filed $650,000 of 7% first mortgage bonds and
120,000 shares of common stock. The offering will be
20

shares of

bond

one

common

stock

($100 principal amount) and
or

unit of 50

one

bonds

at

principal amount plus accrued interest. Price—To be
supplied by amendment. Proceeds—For additional plant
and equipment and to provide working capital to com¬
and maintain

mence

production.

Office

—

414 Pioneer

Bldg., St. Paul, Minn. Underwriters—Irving J. Rice &
Co., Inc., St. Paul, Minn, and M. H. Bishop & Co., Min¬
neapolis, Minn.

will be used to

derwriter—Charles Plohn & Co., New York City.

it Dymo Industries, Inc. (5/16-20)
April 11 filed 50,000 shares of capital stock. Price—To be
supplied by amendment.
Proceeds •— Approximately

Mission

—Van
•

improvements; and the balance for work¬

capital. Office—2546 Tenth St., Berkeley, Calif. Un¬

derwriter—William R. Staats & Co., Los
•

Angeles, Calif.

(4/28)

Dynex, Inc.
March 15 filed
warrants for

54,000 common shares (25 cents par) and

an

company

additional 5,000 shares of this stock. The

proposes

to make

a

public offering of 30,000

Of the additional 24,00,0 shares, 20,000 are being
escrow for the account of, and may be resold

shares*

by, the holders of capital stock and certain creditors of
Matronics, Inc., after July 22, 1960 at the then prevail¬
ing market price; and 4,000 shares for the account of
the holders of the common stock and a creditor of Optics

Manufacturing

Corp.

The

5,000

warrants

issued to stockholders and certain creditors of
Inc.

30

(5/9-13)

filed

Proceeds—$950,000 will be used to

repay shortto $375,000 is to be invested in MicroCorp.; the balance of the proceeds will be used
to acquire new facilities, to maintain
necessary inven¬
tory to meet current and anticipated sales requirements,

to

supplement working capital and for other general
corporate purposes. Office—26-12 Borough Place, Wood-

side, N. Y. Underwriter—C. E. Unterberg, Towbin Co.
Family Fund Life Insurance Co.
March

30

filed

being
Matronics,

are

Price—To be supplied by amendment. Proceeds—

116,800 shares of

common

offered for subscription by stockholders
one
new share for
each 5 shares held.

stock, to be

at

the rate of

Price—$9 per
share. Proceeds

share; unsubscribed shares at $10.25 per
—To increase capital and surplus and expand the busi¬
Office—1515 Spring St., N. W., Atlanta, Ga. Un¬
derwriter—J. H. Hilsman & Co., Inc., Atlanta, Ga.
ness.

Farmers'

Educational & Cooperative

Union of America
March 29 filed $2,500,000 of registered

D,
in

maturing from

1969

to

1980.

debentures, series

Price—To

be

offered

units of

$100. Proceeds—To pay notes maturing be¬
fore Dec. 31, 1963, with $1,107,000 to be contributed to
surplus or loaned to subsidiaries. Office—Denver, Colo.
Underwriter—None.

Farrington

(letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
—For general corporate purposes.
Office — 405 Park
Avenue, New York, N. Y. Underwriter—Morris Cohon
& Co., New York, N. Y.

the Bank
Savings Association. Office
Francisco, Calif. Underwriter
Co., New York.

mega

Dynamic Films, Inc. (5/9-13)

March 29

San

term notes and up

$200,000 of the proceeds from the sale of the stock will

ing

St.,

$2,000,000 of convertible subordinated
debentures, due 1970. Price—To be supplied by amend¬

ment.

be used for the purchase and installation of machinery
and equipment in a new plant which the company is
presently negotiating to lease; $400,000 will be used for
the acquisition of tools, dies, jigs and fixtures; $100,000

reduce notes payable to

Alstyne, Noel &

FXR, Inc.

March

Dworman

Corp. (5/9-13)
Jan. 15 filed 300,000 shares of common stock. Price—
$10 per share.
Proceeds—For general corporate pur¬
poses.
Office—400 Park Avenue, New York City. Un¬

per

of America National Trust &
—551

March

25

Manufacturing

filed

$6,000,000

of

Co. (5/2-6)
subordinated convertible

debentures due 1970.

Price—To be supplied by amend¬
Proceeds—$2,000,000 to be applied to the pay¬
ment of bank loans; $2,800,000 to the scanner program
in 1960, including
(a) $1,000,000 for expenditures by
Farrington
Electronics,
Inc.,
a
newly-formed
date
processing subsidiary, for inventory, 250,000 to pur¬
chase and test equipment for producting scanners and
..$250,000 as working capital; and (by $1,300,000 for re¬
search and development. Office—77 A St., Needham,
Mass. Underwriters—Cyrus J. Lawrence & Sons, New
York City; and Brawley, Cathers & Co., Toronto, On¬
tario, Canada.
*
;
^
r
/
"
'
ment.

.

.

it Federal Steel Corp.
March 30 (letter of notification) 59,000 shares of com¬
mon stock (no par).
Price—$5 per share. Proceeds—For
an expansion program.
Office—3327 Elkton Ave., Dayton
3, Ohio. Underwriter—Westheimer & Co., Cincinnati,

To finance the activities of the two newly-acquired con¬

Ohio.

finance the starting of inventories and adver¬
tising incident to new products, to purchase additional
equipment and inventory for the manufacture and pro¬

Fidelity Acceptance Corp.
j;. ;
March 24 (letter of notification) 12,000 shares of class H
6% cumulative preferred stock. Price—At par (25) per
share). Proceeds—For working capital. Office—820 Plym¬
outh Bldg., Minneapolis, Minn.
Underwriter—Ray F.
Kersten, 3332 E. Orange Dr., Phoenix, Ariz.

cerns, to

• dependable Life Insurance Co.

4ou

Inc.

March 30 filed 200,000 shares of common stock (par $1)
to be publicly offered and 125,000 shares issuable under

(par 10

will be added to

Price—$5

issued in

Deluxe Aluminum
Products, Inc.
nrm

v:"7 ';v/

Associates, Inc. (4/18)
161,750 shares of class B, non-voting, com¬
mon stock
(par $5). Price—$10 per share. Proceeds—
For general corporate purposes, including payment on
a building and the financing of loans. Office—Orlando,
Fla. Underwriter—Leon H. Sullivan, Inc., Philadelphia,
Pa., on a "best efforts" basis.

,

The

Underwriters

Underwriter—First Trust Co. of Lincoln, Lincoln,

stock

to be offered for public

are

development, and $20,000 for advertising and promotion.

balance

—

N. Y.

(5/16-20)
common

remaining
50,000 shares, now outstanding, by Robert Edwards, com¬
pany president.
Price—To be supplied by amendment.
Proceeds—$20,000 will be used to further Oquip its en¬
gineering department and office, $60,000 for research and

to

Price—At par. Proceeds—For construction equip¬

for leasehold

Corp.

March 30 filed 200,000 shares of class A common stock,
of which
170,000 shares are to be offered for public sale

Construction Co.

cents), of which 72,500 shares

each.

made in units of

Underwriter—R. A. Holman & Co.,

Builders, Inc., with the balance to

Oct. 27 filed

packages for completion by the home owner on a "do-ityourself" basis. Office—7111 Florida Boulevard, Baton

Inc., New York, N. Y.

Electronic Assistance Corp.
17 filed 122,500 shares of

notification) $300,000 of subordinated
equipment notes to be offered in denominations of $1,000

Neb.

struction loans to builder-dealers, expansion of the com¬

•

Goldman

Neb.

pany's market area, and the possible manufacture and
erection, in cooperation with builders, of "shell" house

Street, Buffalo, N. Y.

&

ment; to retire equipment obligations, and for working
capital. Office—502 First National Bank Bldg., Lincoln,

an

Co., Inc. (4/25-29)
March 28 (letter of notification) 85,000 shares of com¬
mon stock (par 25 cents).
Price—$3 per share. Proceeds
—For general corporate purposes.
Office—1700 Niagara

thereof.

Office—Wash¬

Communities, Inc.

Dobson Brothers

short-term bank loans ($5,921,872 outstanding at

Custom Craft Marine

holders

March 30 (letter of

unconsolidated subsidiary). It is con¬
templated that the additional funds will be used to ac¬
quire land for development or resale to dealers, con¬

•

present

be used as working capital.
Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
Offer¬
ing—Postponed. ■;<<\• '\\\C.'V'■! J'Y-V';■

31* 1959, including $5,199,800 of bank loans made

Underwriter—A. G. Becker & Co., Inc., of

the

supplied by amendment.
Underwriter—None.

Diversified

working capital and used for general cor¬
porate purposes, including but not limited to the reduc¬

Chicago and New York.

of

account

be

Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and

ally added to

Rouge, La.

the

ington, D. C.

which 100,000 shares are to be offered for public sale
for account of issuing company and the balance, being
outstanding stock, by the present holders thereof. Price
—To be supplied by amendment. Proceeds—To be initi¬

to

per

purposes

sale for the account of the
company and the

for

Price—To

of

directly

•

corporate

sold

Distributing Corp.
Feb 29 (letter of notification) 75,000 shares of class A
common stock (par 10 cents). Price—$4 per share. Proceeds—For general corporate purposes. Office—315 W.
47th Street, New York, N. Y.
Underwriter—Mortimer
B Burnside & Co., Inc., New York, N. Y. Offering—
Expected sometime in April. J
• Crawford Corp.
(4/25-29)
March 28 filed 200,000 shares of common stock (par $1),

Dec.

Price—$3.50

37

share. Pro¬
including sal¬
aries, sales promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New
Orleans,
La.
Underwriter — Sandkuhl
&
Co.,
Inc.,
New York City.
•
general

March

Cosnat Record

tion of

holders thereof.

capital interests in certain promissory notes, mortgages,
real estate, and joint
ventures, with the balance to be

rch 23

^Jamestown;

initially to reduce short term debt. Office

St., Des Moines, Iowa, Underwriter—White,
Co., Inc., New York.

Weld &

pqi*0

5

be used

—207 Ninth

Price—To
pfire

(1653)

duction of contracts for
the scope of

other concerns,

and to expand
Office—123 Eileen
Underwriter—Myron A. Lomasney

the company's business.

Way, Syosset, N. Y.
& Co., New York.

East Alabama Express, Inc.

April 1
stock
repay

(letter of notification) 77,000 shares of common

(par $1). Price—$2.50 per share^ Proceeds—To
notes payable, reduce equipment purchase obliga¬

tions, accounts payable and for working capital. Office
M Street, Anniston, Ala.
Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.

—109

it

Edwards Engineering Corp.

April 8 filed 85,000 shares of common stock of which

70,000 shares are to be offered for the account of the
company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the

•

;

•«.

>

•

Figurette, Ltd. (5/9)
3 filed 100,000 shares of class A common stock,
(par 50 cents) Price—$6 per share. Proceeds—For gen¬
eral corporate purposes. Office—514 N. E. 79th Street,
Miami, Fla. Underwriter—Myron A. Lomasney & Co.,
March

New. York.

t

Finger Lakes Racing Association, Inc.
Dec.

28

,

filed

$4,500,000 of 20-year 6% subordinated
sinking fund debentures due 1980 and 450,000 shares of
class A stock (par $5) to be offered in units, each con¬
sisting of $100 of debentures and 10 shares of class A

issuing

-

Continued

on

page

38

38

The Commercial and Financial Chronicle

(1654)

Continued

Bala-Cynwyd, Pa. Underwriter
Philadelphia, Pa.

—

from page 37

Price—$155 per unit. Proceeds—For purchase of

\stock.

miscellaneous expenses. Of¬
Brooklyn, N. Y. Underwriter
Inc., New York and Philadelphia. Offer¬

other organizational and

—Stroud & Co,.

ing—Delayed.
National

First

Realty & Construction Corp.

(5/9-13)

,

,

March

filed

28

150,000

shares

of

shares

150,000

r

•

'v-iv

cumulative preferred

of

stock

common

purchase

war¬

rants, series B, It is proposed that these securities will
be offered in units, each unit consisting of one share of

preferred, one share of common, and one warrant. Price
To be supplied by amendment.
Proceeds — $182,000
will be used to repay loans made by an officer and di¬
rector of the company and a corporation
controlled^ by
him to provide funds for apartment house construction;
about $500,000 will be used for the repayment
of bank notes; and the balance will be

tion

working capital for
erties

the

for

and

of

to

$12,555,600

use in the acquisition of new prop¬
company's construction program.
York. Underwriter—H.

States,

Hentz

^ General Motors Corp.
April 6 filed 530,742 shares of common stock, being the

&

March

Co., New York.
filed

14

$691,800 of registered subordinated

total

The

stock.
in

company

proposes

units, each consisting of

Florida

a

•

acquire

a
Federal Housing Administration approved mortgage
financing and service company; $200,000 will be used to
pay off bank loans; and the balance for working capital.
Office—700 43rd St. South, St. Petersburg, Fla. Under¬
writer—Jaffee & Co., New York.

•

Enterprises, Inc.

(5/9-13)

loans

and

for

working capital.

17903 St. Clair

Ave., Cleveland, O.
Co., New York.

Forest Hills

Jan. 29

of

Denver, Colo.

•

Underwriter

Philadelphia, Pa.

Friendly Frost Inc.

ment

are

reserved

gram,
Frost
•

of

for the

company's Employees' Stock
Price—$7.50 per share. Proceeds—For re¬

Option Plan.
payment

loans, for company's expansion pro¬
and the balance for
working capital. Office—123
Street, Westbury, L. I., N. Y. Underwriter—None.

Futterman Corp.

(5/31-6/3)

of properties.

Price—To

acquisition

Office—580 Fifth Avenue, New York.
derwriter—Reynolds & Co., New York.
Gem

international, Inc.

Mar. 29 filed 150,000 shares
—To

Un¬

(5/9-13)

common

stock

be supplied

(par $1). Price

by amendment.
Proceeds—$125,000 to
open, furnish and equip the new
Wichita store being
built for the
company by others; $75,000 to
open
fur¬
nish and
equip the second store in St.

Louis, similarly
being built by others; $128,600 to
purchase the assets of
Embee, Inc., and Garrol, Inc., who now hold
the basic
lease

the premises used

on

by the Kansas City operating

company and who sublease the premises
to that
company:
$208,000 for advance to the
able

it

to

purchase

the

Honolulu subsidiary to

assets

Ltd., and Dacat, Ltd., which
on

the

store

building;

Stores, Inc., and Gem

en¬

of

Honden, Ltd., Honla

now

hold the basic leases
for advance to Gem

$105,000

of St.

Louis, Inc., to enable those
corporations to repay
loans; and the balance for general
corporate purposes and as needed
to expand
existing
facilities and to establish new
locations.
Office
418

Empire
Building,-Denver, Colo.
Underwriters
Bosworth, Sullivan & Co.,
Inc., Denver, Colo.; and
Scherck,
Richter Co., St.
Louis, Mo.
General
Aeromation, Inc. (5/9)
March 3 (letter of
—

stock

notification) 84,450 shares

(no P3r). Price

struction

of

additional

of common

$3 per share. Proceeds—For

vehicles,

a

demonstration

con¬

and

f1 test center an<* working capital. Office
w
^^Somery Road Cincinnati, Ohio. Underwriter
—Westheimer & Co.,
Cincinnati, Ohio.

—

General Atronics
Corp. (5/18-22)
155,660 shares of common
Pe*

^ if

Goelet

Price

sharf* Proceeds—$60,000 for additional laband production equipment, $80,000 for additional

developmental engineering and sales
promotion of materials handling
equipment, $80,000 for investment in
Atromc
Learnings Systems, Inc., $93,000 for
of bank
repayment
loans, and $157,859 for




working capital. Office

offered

in

denominations

convertible

into

common

/

Corp.

-

filed

chase warrants (exercisable at $4.30 per share until
May /
15, 1965), to be offered in units consisting of $100 of
common

shares, and five warrants.

Price

—$143

per unit.
Proceeds—To be applied toward thecompany's general business activities. Office—292 Madi¬
son

Avenue, New York.

Underwriters—Ross, Lyon

'Co., Inc. and Globus, Inc., both of New York.
Gold Medal

note

&

:

common

stock

chasable upon exercise of the warrants.
Price—$1.25 per
share. Proceeds—For
repayment of debt; purchase of
equipment and facilities and other general
corporate

purposes. Office—614 Broad
St.,
writer—Mortimer B. Burnside &

Change—Formerly

Eastern

Utica, N. Y. Under¬
Co., New York. Name
Packing Corp. Offering—

Gorton's

at

of
Gloucester, Inc.
;
(letter of notification) 10,100 shares of com¬
stock
(no par).
Price—At-the-market, estimated

$24% per share. Proceeds—To
holders. Office—327 Main
St.,

to

go

selling stock¬

Gloucester, Mass. Under¬
writer—Kidder, Peabody & Co., Inc., Boston, Mass.
Great

American

Realty Corp.
April 8 filed $2,000,000 of 7% convertible
debentures
due July
1, 1975, together with 110,000 shares of out¬
standing class A stock. Price—For
debentures, at 100%
of principal amount.
Proceeds—For additional

working

capital.

Office—15 William St., New York.
Underwriter
debentures, to be supplied by amendment.
Greater Washington Industrial

—For

Investments, Inc.

(4/25-28)
March 21

filed 300,000 shares of common
stock. Price—
$10 per share. Proceeds—To be added to
other general
funds of the company, and will be used to
finance the
company's principal small business investment
com¬
pany activities of providing
equity

funds, and management services
trial small business concerns in

capital,

long-term

to scientific and
the greater

indus¬

Washington
Office—1625 Eye Street, N. W.
Washington, D. C.
Underwriters—Johnston Lemon & Co. and

area.

Auchincloss,
Redpath, both of Washington, D. C.

★ Gross Furnace

Manufacturing Co., Inc.
(letter of notification) 120,000 shares of com¬
stock
(par 10 cents). Price
$2.50 per share.

March 30
mon

—

Proceeds

—

For

has

advertising,

equipment

capital. Office—c/o Joseph J.
Gross, 2411
Road, Richmond, Va.

and

working
Sunnybrook

Underwriter—Maryland

Co., Inc., Baltimore, Md.

been

3:30

10

shares

p.m.

retire

held; rights to
Price—$24 per
$4,000,000 of bank

DST.

some

incurred to replenish
working capital

reduced

primarily by expenditures for
tooling and development engineering in connection
with
the Xerox 914 Office Copier, and for
inventories of
equipment for leasing. The balance of the proceeds
be

will

added

to the company's general funds and
will be
primarily for increased inventories of
xerographic
equipment for leasing, principally for the new
copier.
Office—6 Haloid St., Rochester, N. Y.
Underwriter-^
The First Boston Corp., New York:
used

•
Hampshire Gardens Associates (5/2)April 1 filed $376,000 of Limited Partnership

to be offered in units.

Price—$500

For purchase of the fee title to

per

unit.

Interests,
Proceeds-^

garden type apartment
community (Hampshire Gardens) consisting of 14 build¬
ings with a total of 134 apartments in Chillum, Md. Of¬
a

fice—375 Park

Avenue, New York. ? Underwriter—B. C.
Company, Inci, New York.

Hamilton

Management Corp.

(4/25-29)

March 21 filed 320,000 shares of class A

common

non-voting

stock,

(par 10 cents). Price — To be supplied
by
amendment. Proceeds—To
selling stockholders. Office—
777 Grant Street,
Denver, Colo.
Underwriter—Kidder
Peabody & Co., New York.
Harburton
March 21

Financial Corp.
(5/19) /
(letter of notification) 298,500 shares of class
voting (par one cent). Price—$1

A common stock—non

share.

per

Proceeds—For

Office—56

general

corporate

purposes.

Beaver

Street, New York 4, N. Y.
Under¬
writer—Simmons, Rubin & Co., Inc., New York, N. Y.
•
HawSey Products Co. (5/2)
/
Mar, 29 filed 90,000
outstanding shares of common stock
(par $5). Price—To be supplied by amendment. Proceeds

—To

St:

selling stockholders. Office—333-39 North Sixth
St.,
& Co., Chi¬

Charles, 111. Underwriter—Dean Witter

cago and New York.

I

.

Henry's

Drive-In, Inc. (4/18-22)
(letter of notification) 100,000 shares of com¬
(no par). Price—$2.50 per share. Proceeds—
To purchase new sites and build drive-in
restaurants for
March 23

stock

mon

sale or lease to operators for
expansion of locations. Of¬
fice—3430 N. Harlem
Avenue, Chicago, 111. Underwriter
—Westheimer & Co., 326 Walnut

Street, Cincinnati, Ohio.

Holt, Rinehart & Winston Inc.March 29 filed 331,740

(4/28)

outstanding shares of its common
(par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Office—/New York
stock

City.

Underwriters

Goldman, Sachs & Co., Allen &
Shearson, Hammill & Co., all of New York^

Co. and
:•

Howe

—

Plastics & Chemical

Dec.

14

(letter

Companies, Inc.

Securities

of

notification) 60,000 shares of com¬
(par one cent). Price—$3 per share. Proceeds
general' corporate purposes. Office—125 E. 50th
Street, New York, N. Y. Underwriter—Hilton Securi¬
stock

mon

—For

ties, Inc., 580 Fifth Avenue, New
York, N. Y.
Hydra-Power Corp. (5/2-6)
March

21

filed

$600,000 of 6%%

subordinated

>

deben¬

tures,

due 1970, with warrants to purchase 150 com¬
shares for each $1,00,0 debenture.; Price—100% of

mon

principal amount.

Proceeds—$175,000 will be applied to
equipment, raw material and to

the purchase of
capital

finance

March 22
mon

at

Proceeds—To

indebtedness

each

for

April 27

./(4/25-29)

(par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for
the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬

Indefinitely delayed.

share

new

on

which

Packing Corp.

June 18 filed 572,500 shares of

Parker &

stock.

be
are

(5/10)
V'V
$700,000 of 8% subordinated Installment/
debentures, due in March, 1970, 70,000 shares of com¬
mon stock
(10 cents par) and 35,000 common stock pur¬
March 1

bank

April 1 filed 660,000 shares of class A stock.
be supplied
by amendment. Proceeds—For

•

!

debentures, 10

April 5 filed 150,000 shares common stock
(par 10c). An
additional 96,500 shares included in the
registration state¬

to

Debentures

Street, Fort Worth, Texas. Underwriter—R. A. Holman
& Co., Inc., New York, N. Y. Note—The name
has been
changed from Glass Magic, Inc.

Robbins & Co., 82 Wall St., New York
City.

Founders Mutual Depositor
Corp. (5/2-6)
(letter of notification) 60,000 shares of com¬
mon
stock, class A (no par). Price—$4.87% per share.
Proceeds—To go to selling stockholders.
Office—2401
First National Bank
Bldg.,

one

To

shares of common stock (par 100).
Price—$4 per share. Proceeds—To build a country club
in Forest Hills, L.
I., N. Y. Office—179—45 Brinckerhoff
Ave., Jamaica 33, L. I., N. Y. Underwriter—Jerome
•

debentures

each.

debentures, at par; of stock, $102 per unit. Proceeds—
pay off current accounts payable; purchase of raw
materials
and
for
expansion.
Office—2730
Ludelle

(4/18-22)

March 25

$51

stock at $1.50 per share. Also, 68,000 shares of common
stock (par 10 cents) to be offered in units of one
$51
debenture and 68 shares of common stock.
Price—Of

filed 75,000

—Hecker & Co.,

Magic Boats, Inc. (4/25)
(letter of notification) $51,000 of six-year 6%%

convertible

Office—

Underwriter—Bache

Country Club Ltd.

of

expire
; share.

Corp. (4/25-29)
shares of outstanding common

220,605

(no

Dec. 30
repay¬

bank

of

filed 333,213 shares of common
stock (par
$1.25) being offered for subscription by the
company to
its common stockholders of record April
11, at the rate

Morton &

Glass

Forest City

ment

•

filed

29

Xerox, Inc.

11

Products

Shale

• General Telephone & Electronics Corp.
April 6 filed 2,000,000 shares of common stock, to be
offered pursuant to the company's Employees'
Stock
Option Plan. Office—730 Third Ave., N. Y. C.
A

Mar. 29 filed 450,000 shares common stock
(par $1). Price
—To be supplied by amendment. Proceeds—For

&

Feb.

par). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—Johnson City,
Tenn. Underwriter—Equitable Securities
Corp.," Nash¬
ville, Tenn.
*
'
"

Mar. 30 filed 800,000 shares common stock (par $1). Price
—To be supplied by amendment.
Proceeds—Between
or

at

-

General

stock

$200,000 and $250,000 will be used to establish

which

shares

Haloid

March

SS

Motors.

(5/2-6)

Builders, Inc.

of

number

March
•

1/^

subject to

to offer these
$100 debenture
and 10 common shares. Price—$115 per unit.
Proceeds
—For reduction of accounts payable and corporate in¬
debtedness. Office—Bensenville, 111. Underwriter—None.
securities

ixyffi;::

29, 1960 were
(1) options which were exercisable on that
date and (2) options which will become exercisable on
Sept. 17, 1960.
The options were issued under the
company's Stock Option Plan for executives of General

de¬

bentures, 6%, due February, 1972, and 69,180 shares of
common

•

Corp. (4/18-22)
of convertible subordinated

Office—630 Third Avenue, New

Flick-Reedy Corp.

"

filed

2

Inc.
shares of

for

• General Motors Corp.
April 6 filed 1,600,000 shares of common stock, to be
offered pursuant to the company's Savings-Stock Pur¬
chase Program for Salaried Employees in the United

a por¬

added

General Development

March

debentures, due May 1, 1975, to be offered for subscrip¬
tion by holders of the outstanding common in the ratio
of $100 principal amount of debentures for each 50
shares of common held with rights to expire 16 days
from
date
of offering.
Price — To be supplied by
amendment. Proceeds—For general corporate purposes.
Office—2828 S. W. 22nd Street, Miami, Fla. Underwriter
—Goldman, Sachs & Co., New York City, will head a
group which will purchase any unsubscribed debentures.

of common §tock,

stock first series, $7 par, 150,000 shares
and

..

Development,

common stock.
Price—
$5 per share. Proceeds—For purchase of Pelican
Island*
improvements on said property; and for
working
capital and other general corporate purposes,
including
the general development of the
property. Office—714
Rosenberg St., Galveston, Tex.
Underwriter—Myron a
Lomasney & Co., New York.

(4/18-22)
March 25 (letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
For general corporate purposes.
Office—1000 N. Di¬
vision Street, Peekskill, N. Y.
Underwriters—Bertner
Bros, and Eari Edden Co., New York, N. Y.

fice—142 Pierrepont Street,

GuEf-Tex

Thursdayj April 14, 1960

.

March 30 filed 250,000

General Casting Corp.

•

land and the cost of construction of racing plant as well
as

•

Harrison & Co.,

—

.

.

work-in-process

Power-tronics
research and
as

voltage

and

Systems,

Inc.,
development of a

regulators

$225,000 to be

used
to the operations of

finished-

products '.'.for
subsidiary engaged in
new line of products such

a

and
for

regulated' power companies;
similar purposes with respect

Electro-Powerpacs, Inc., a subsidiary
design and production of photographic
emergency lighting equipment; $100,000 for reduc¬

engaged
and

tion of
ance

in

a

for

the

portion of
general

a

$200,000 bank loan; and the bal¬
purposes.
Office—10 Pine
Underwriters—Aetna Se¬

corporate

Court, New Rochelle, N. Y.

curities Corp. and D. Gleich
Co., both of New York.
I C Inc.
(4/18-22)
June 29 filed
600,000 shares of common stock (par

$1)»

Price—$2.50 per share. Proceeds—To further the corpo¬
rate purposes and in
the preparation of the concentrate
and

^enfranchising of bottlers,

motion

and

advertising

of

necessary to make
704 Equitable
vis

&

Colo.

the local and national Pr0"

its.

beverages,

and

where

loans to such bottlers, etc. Office—
Bldg., Denver, Colo. Underwriters— Pur*
Co. and Amos C. Sudler
& Co., both of Denver.

Insured Mortgages of
America, Inc.
March 14 filed
$1,000,000 of 5%% collateral trust bonds.
Price—At 100% of
principal amount. Proceeds—To repay
temporary bank loans and to purchase additional in"
sured

mortgage loans, and for other corporate purposes.
Office—575 Colman
Bldg., Seattle, Wash. UnderwriterNone.

★ Interchemical Corp.
April 8 filed 97,750 shares

of common stock which
under the
company's Employee Stock
Office—New York City.

be purchased
tion Plan.

may

Op¬

Number 5942

191

Volume

.

.

The Commercial and

.

^national Aspirin Corporation
filed 600,000 shares of common stock constituting
Vrct public offering, subsequently reduced to 300,,th
lives (par'$i). Price—Per share- Proceeds—For
000
Snn of sales and general corporate purposes. OfeXPansLt- Denver U. S. National Center, Denver, Colo,

Lite-Vent

,

Price—$5.20

indebtedness, $45,000 to acquire additional
forming machinery and equipment, $74,000 to re¬
pay advances by two officers, and the balance for work¬
ing capital and other corporate purposes. Office—14637
Meyers Road, Detroit, Mich. Underwriter—Peter Mor¬

convertible

J

dock
q

en!fr-riDtion

SiluSCnf

par),

($20

being

offered

rvf

nr^fpronpd

cfnr>lr

th(f basis" of held,
one new share of preference
with rights to expire

7 on

Litho-Web,

Inc.
(letter of notification) 130,000 shares of com¬
(par 50 cents). Price—$1 per share. Proceeds
—To purchase machinery and equipment and for work¬
ing capital. Address—P. O. Box 168, Leaksville, N. C.
March 7

-Prw

directly into common before April 1, 1965,
shares of common thereafter but before
The conversion privilege will then expire.
A.P:' ^,.av.'ro ctnrk mav be called at from $22 to $20
.'reference stock may be called at from $22 to $20
m/prtible

<5

*

into 1.1
.n 1
1970.

Underwriter—Smith, Clanton

phpp

$20

__

Short-term

Proceeds

share.

per

Loveless

Properties, Inc.
(letter of notification) 75,000 shares of common
stock (par $1). Price—$4
per share.
Proceeds—To pay
bills, for acquisition of Lacey Shopping Center, and for
working capital. Office—603 Central Bldg., Seattle 4,

For reduction of

—

Wash.

Office—3430 Broadway, Kansas City,
Mo
Underwriters—Harriman Ripley & Co., Inc., New
York; and Stern Brothers & Co., Kansas City, Mo.
notes.

Randolph & Co., Inc.,

I

Magnasyc Corp.
Feb. 26 filed
200,000 shares of capital stock. Price

(5/2-6)
March 29 filed 75,000 shares of common stock (par $1).
prjce
Xo be supplied by amendment. Proceeds—Major
portion of the net proceeds of sale of additional stock
will be added to working capital to be applied toward
financing an increasing volume of business and intensi¬
fied sales efforts/and toward expanding and broadening

—

$5

share.

per

Proceeds—To repay interim loans up to $100,000 to Taylor &
Co.; $100,000 for expansion of labora¬
tory facilities and personnel for research and develop¬
ment; $100,000 to increase plant production facilities;
$116,000 for tooling and production of proprietary items;
$110,000 for increase of inventory; $75,000 for research
and

development; and $2,000 for documentary stamps;

development, including activities in the
The company expects to move to larger

$110,000 will be added

fuel cell field.

quarters near

Waltham, Mass., and it estimates that

Ave., North Hollywood, Calif. Underwriter—Taylor and
Company, Beverly Hills, Calif.
/

and

research

maining

re¬

quirements for new equipment and other costs, includ¬
ing moving expenses, will amount to at least $300,000.
A portion of the proceeds of the stock sale may be ap¬
plied to the cost of constructing the new building,., but
the company does not anticipate that in excess of $400,000 of the net

proceeds of this offering will be used

•

of

like

a

bursement of the
writer

To

—

Probable

be

ance

and

ent

York

Time)

on

to

11:00

(New
'

•

Kahr

Bearing Corp.

stock

mon

(4/18)

^

.

100,000 shares of eojn-

(par 10 cents). Price—$3 per share. Pro¬
working capital. Office—812 S. Flower -St.,

ceeds—For

Burbank, Calif. Underwriter—Morris Cohon
York, N. Y.
Kenrich

Petrochemicals, Inc.

March 29 filed
$175,000 of 7%

Co., New

&

(5/16)

M

convertible subordinated

debentures due 1970, and 55,000 shares of class A

com¬

stock.
Price—For debentures, 100% of principal
amount; and $3.50 per class A share. Proceeds—$10/000
will be applied towards the
repayment of demand notes,
$115,000 for new plant facilities and equipment; and the
mon

balance for general
corporate purposes. Office—120 Wall
St., New York. Underwriter—First Philadelphia Corp.,
New York.

Keystone Electronics Co., Inc.
+

i

fded 200>000 shares

1

stock, 133,334 shares
tor

the

are

account of the

(4/18-22)

Of this

of common stock.

to

be

offered

company

for

public sale
and 66,666, being out¬

standing stock, by the holders thereof. Price
$3 per
snare.
Proceeds—For additional equipment and inven—

„ry;. r research and

development; and the balance for
working capital. Office—65 Seventh
Ave., Newark, N. J.
nderwriters—J. A. Winston &
Co., Inc. and Netherlands
securities, Inc., both! of New York.
Lamcnr
atch 30

(letter of notification)

?^ew York 22,

&

Securities Co.

of

Nova^nnlf,CtroI,ics
stnr/
For

100,000 shares of class

N. Y.

Underwriter—Invest -

Maryland, Baltimore* Md.

,corPorate

J
own'
Corp., staten

curiti'n

unties

ApriMrJo l?ecortls.
Price

shares of

share.

common

Proceeds—

Woodward
J- Underwriter—Prudential Se~
Island, N. Y.
purposes.

Office

—

Inc.

150,000 shares

a

of common stock

(par 50c).

added~"t P?u°ximately $8-00 Per share- Proceeds—To be
stantiail?
comP.any's general corporate funds, sub+

ital

meot increased demands on working cap920 Sunset Boulevard, Los Angeles, Calif.

nn:

Pnderu/KW6
Calif

Off

•

Cr°well, Weedon

ering—Expected

lWarcheC9qa,ril,ldi,stries'

mid

to

&
late

Co., Los
May.

Angeles,

Ltd- (5/9-13)

dpho/f+

$750,000 of 6Y4% subordinated sinking
ber of nnm?iUres! due 1980> and an undetermined numper unit ^vM°n shares, to be offered in units. Price—$500
ceedsJp P us accrued interest from May 1, 1960. ProJ. llnrin«geiiera^ corporate purposes. Office—Passaic,
land

I

Price—To

be

supplied by amend¬
stockholders. Office—2530

selling

Underwriter—Hay-

Major Pool Equipment Corp.
March 21 (letter of
notification) 117,000 shares of
mon stock.
Price—$2.50 per share. Proceeds—For
eral

corporate

purposes.

gen¬

Office—South

April 6 filed 258,562 shares of common stock. The com¬
pany proposes to offer these shares in exchange for all
of the issued and
outstanding shares of capital stock
not owned by Marine Midland
(except directors' qualify¬

shares)

Marine

of

constituent

banks,

as

Trust Co. of Western New York

Marine

Midland

Company's
The

its

stock,

Marine

stock
or

Midland

for

each

32,382
Trust

share

Marine

Co.

of

follows:

New

The

(3.60 shares of
of

the

Midland
York

Trust

shares);
(2.30 for

4,842

shares); Genesee Valley Union Trust Co.
(5 for 1, or 2,315 shares); Marine Midland Trust Co. of
Southern New York (4 for 1, or 41,780
shares); Marine
Midland Trust Co. of Central New York (1.75 for one,
or 31,198
shares); Marine Midland Trust Co. of Mohawk
Valley (.85 for one, or 92,970 shares); The Northern
New York Trust Co.
(4.55 for one, or 9,342 shares);
Chautauqua National Bank of Jamestown (4.40 for one,
or
3,674 shares); The Manufacturers National Bank of
Troy (4.15 for one, or 3,076 shares) ; and Marine Midland
Trust Co. of Rockland, County (.75 for one, or 36,983
shares). Office—241 Main St., Buffalo, N. Y.
one,

or

Marquette

Corp.

(5/2-6)

March 28 filed 461,431 shares of common
to

be

stock, of which
The shares

offered

for

public sale include 275,031 shares to
company and 116,400
which are outstanding and will be offered for the ac¬
count of holders thereof.
The remaining 70,000 shares
are to be reserved for issuance under a new stock option
offered for the account of the

be

rwriter—p. w.

Brooks & Co., New York.




and

the

3,250

the

shares

Easton, Md.

being

are

holders

present

reduction

39

offered

thereof.

for

the

Price—To

be

Proceeds—For working capital
indebtedness. Office—

of short-term

Underwriter—Alex Brown

&

Sons, Balti¬

Md.

more,

^ Mayfair Markets
April 1 (letter of notification)

4,918 shares of common
stock (par $1) and
4,918 shares of preferred stock (par
$50) to be • offered in units of one share each. Price—
$61 per unit.

Proceeds—To liquidate obligations. Office

—4383 Bandini

None.

.

Blvd., Los Angeles, Calif.

Underwriter—■

,

Mays

(J. W.), Inc. (5/4)
filed 317,500 shares of outstanding common
stock (par $1).
Price—To be supplied by amendment.
Proceeds
To selling stockholder.
Office
Brooklyn,
March

29

—

N.

Y.

—

Underwriter

Smith

—

Merrill

Lynch, Pierce, Fenner &

Inc., New York City.

•

Medallion Pictures Corp. (5/16-20)
March 29 (letter of notification)
$300,000 of 63/2% con¬
vertible subordinated debentures due March
30, 1968.
Price—At 100%. Proceeds—For general
corporate pur¬
poses.
Office—200 W. 57th Street, New York

18, N/Y.
Underwriter—Hancock Securities Corp., New
York, N. Y.

Medicard, Inc.
March 9

(letter of notification) 300,000 shares of class A
Price—At par ($1 per share). Proceeds
—For reserve for medical loans and
operating capital.
Office—508 Security Bldg.,
Denver, Colo. Underwriter—
Equity Investment Corp., same address.
stock.

common

•

Megadyne Electronics, Inc. (4/18)
(letter of notification) 300,000 shares of common
stock (par 10
cents), subsequently reduced to 269,000
shares.
Price—$1 per share.
Proceeds—For
general

Jan. 7

Office
100 W. 10th Street, Wil¬
Underwriter—Glen Arthur Co., Inc., New

mington, Del.
York, n. y.

—

j

.

Melville Shoe
March

15

Corp. (4/18-22)
$12,000,000 of 20-year debentures,

filed

due

April

15, 1980. Price—To be supplied by amendment.
Proceeds—For repayment of bank
loans, increased work¬

ing capital, and general corporate

purposes.

Office—New

York City. Underwriter—Merrill
& Smith Inc., New York

City

•

Menu-Matics, Inc.

Lynch, Pierce, Fenner
(managing).,

/

(4/20)

March 17

(letter of notification) 285,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For additional production
equipment, inventory, and
mon

stock

for

publicity, research;'marketing, and additional work¬
ing capital. Office—176 Oak St., Newton, Mass. Under¬
writer—Pleasant Securities Co., 117 Liberty St., New
York, N. Y.

March
com-

Kearny, N. J.
Underwriter—Hill, Thompson & Co., Inc., New York.
ic Marine Midland Corp.

ing

of

>/'.;■

',.y.;<// ///,/■■

,

,J-

Metalcraft Inc.

Price —For public offering, to be supplied by
amendment.
Proceeds—$400,000 will be expended for

Co- ,nc- (4/18-22)

^ e"er
notification) 70,000
ppn9r °ine cen*)' Price—$1.50 per
tp

thereof.

Proceeds—To

-plan.

(

Roari

holders

391,431 shares will be offered for public sale.

(Do|*othy), Inc.

Prno0111?1011 stock (Par 10 cents). Price—$3 per share.
^nTc??s~~IFor Seneral corporate purposes. Office—65 E.
nw

general corporate purposes. Office—Stockton
O'Farrell Sts., San Francisco, Calif. Underwriter—

Superior Avenue, Cleveland, Ohio.
den, Stone & Co., New York.
>

May 24. \

March 10 (letter of notification)

•

a.m.

for

ment.

account

supplied by amendment.

corporate purposes.
sub¬

Majestic Specialties, Inc. (4/25-29)
March 25 filed
150,000 outstanding shares of common
stock, (no par) to be offered for the account of the pres¬

Dillon, Union Securities &
Co. (managing the books), Salomon Bros. & Hutzler
land Merrill Lynch, Pierce, Fenner & Smith (jointly)/
up

(Joseph) Co., Inc. (5/2-6)
$1,250,000 of 15-year convertible

filed

F. S. Smithers & Co., New York
City and San Francisco.

Eastman

Bids—Expected to be received

re¬

Satsuma

supplied by amendment. Proceeds—For the purchase of
the Blum's interest in
Specialty Shops, Inc.7and the bal¬

expenditures (or reim¬
company's treasury thereof). Under¬
determined by competitive bidding.

bidders:

Office—5546

by the

construction

1960

to

balance

amount

working capital; and the

company
and the remaining 43,000 common
shares by the present stockholders thereof. Price—To be

will be applied to the pay¬
of outstanding notes and.,the

ment

to

unallocated.

issuing

Jersey Central Power & Light Co. (5/24)
March 24 filed $10,000,000 of first mortgage bonds due

Proceeds—$5,800,000

25

is

ordinated debentures due
May 1, 1975, and 78,000 shares
of common stock (par
$1).
The debentures and 35,000
common shares are to be offered for
public sale

on

all of New York.

1990.

$88,400

Magnin

March

a permanent basis
for such purpose. Office—152 Sixth
Street, Cambridge, Mass. Underwriters—Lee Higginson
Corp., Shields & Co., and C. E. Unterberg, Towbin Co.,

1

Underwriter —Andersen,

.Salt Lake City, Utah.

Ionics, Inc.

!

& Co., Greensboro, N. C.

Jan. 20

March 31, 1970, the preference
ftpr March 31,
1975. After, stock will be redeemable
f r the sinking fund at
$20 a share and dividends.
plus dividends

share

stock

mon

stock
"for
April 25,

on

shares

four

for

stockholders of record of April

by common

_

& Co., New York City.

gan

-

and

company,

(par $1).
share. Proceeds—To be added to com¬

per

repayment of

interstate Securities Co.
1 9?
23 filed
filed 165,000
165,000 shares
shares o:
of 53/2 % cumulative prefer.

(5/16-20)

Inc.

roll

jl^Llmminent.
-

Industries,

pany's general funds, of which $200,000 will be used for

^d^rwriter—Paynter & Co., Fort Morgan, Colo. Offer.

(1655)

March 25 filed 100,000 shares of common stock

-

DeC'

Fe

Financial Chronicle

28

(letter of notification) 85,700 shares of com¬
mon stock
(par 10 cents). Price—$3.50 per share. Pro¬
ceeds—For general *corporate
purposes.
Office—8608130th Street, Richmond Hill
18, N. Y. Underwriters—
First

Broad Street Corp.; Bruno-Lenchner Inc., Pitts¬
burgh, Pa.; Russell & Saxe; V. S. Wickett & Co., Inc.
and Street & Co., New York, N. Y.
•

Metal Goods

March

18

filed

Corp.

(4/26)

100,000

shares

of common stock. Price
supplied by amendment. Proceeds—To be used
for expansion of warehouse facilities at St. Louis and
—To be

Dallas

and

financing
Office

other corporate purposes including the
additional inventories
and
receivables.

for

of
8800

—

Page Blvd., St. Louis, Mo.
St. Louis, Mo.

Underwriter

—G. H. Walker & Co.,

Metropolitan

Broadcasting Corp. (4/25-29)
$6,000,0(00 of convertible subordinated
debentures, due 1975. Price—To be supplied by amend¬
ment. Proceeds—For repayment of a temporary bank
loan and interest thereon, and for working capital. Office
March

10

filed

—205

East 67th St., New York City.
Underwriters—
Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & Co.,

both of New York.
•

Metropolitan Edison Co. (4/26)
29 filed $15,000,000 of first mortgage bonds, due
May 1, 1990. Proceeds — For 1960 construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co., Blyth & Co., Inc.; Kidder, Peabody & Co. and
Feb.

Drexel

&

Co.

(jointly). Bids—Expected to be received
April 26 at the offices of General Public
Utilities Corp., 67 Broad St., New York City. Information

up

to 11

a.m. on

Meeting—Scheduled between 10:00

a.m.

and 12

noon

on

April 22 at 67 Broad St., 25th floor.
•

Miami

Tile & Terrazzo,

Inc.

the

acquisition of land, construction of a new plant, and
installation of machinery and equiment for the enlarge¬
ment of the company's welding electrode manufacturing

(par $1).
Price—$4 per share. Proceeds—$150,000 as reduction of
temporary bank loans, $140,000 in reduction of accounts

an additional $100,000 will be used to retire
payable to officers; and the balance will be added
to working capital and approximately $1,000,000 may
be used to reduce temporarily present bank borrowings.
Office—307 East Hennepin Avenue, Minneapolis, Minn.
Underwriters—Carl M. Loeb, Rhoades & Co., New York;

payable, $65,000 to repay notes and loans payable to
Barney B. and Nathan S. Lee, and the balance for gen¬
eral corporate purposes.
Office—6454 N. E. 4th Ave.,

capacity;
notes

Minneapolis, Minn.
Maryland Acceptance & Finance Co.
March 25 (letter of notification) 100,000 shares of com¬
mon stock, class A
(par 20 cents). Price
$3 per share.
and

Piper, Jaffray & Hopwood,

Office —5132

holding and sale of notes.
Ave., Chamber of Commerce

the purchase,

Proceeds—For

Baltimore

Bldg., Hyattesville, Md. Underwriter—E. A. Burka,
Washington, D. C.

Credit Finance Corp. (5/6)
28,250 common shares, of which 25,000
being sold for the account of the issuing

Maryland
March
shares

29
are

Inc.,

March 11 filed 125,000 shares of common stock

Miami, Fla. Underwriter
Corp., Miami. Fla.
•

Microdot Inc.

—

Plymouth Bond &

Share

(4/27)

March 11 filed 204,000 shares of capital stock (no par)
of which 60,000 shares will be offered for public sale

by the issuing company, and 144,000 shares are presently
outstanding and will be offered for sale by the holder
thereof.

Priice—To

be

supplied

by amendment.

Pro¬

ceeds—To retire bank loans incurred for

working capital
purposes in the amount of $406,000; to pay in full prom¬
issory notes held by Trustees under the will of M. H.
Lewis

in

the

amount

of

$78,732, and

(together with

a

filed

Continued

on

page

40

The Commercial and Financial Chronicle
40

*

Price—To be

from page 39

Continued

portion of the proceeds from a bank loan) for the pur¬
costing $200,000, tor

chase of machinery and equipment

and for working
South Pasadena,
Underwriter—White, Weld & Co., Inc., Los An¬

property additions and improvements,
capital. Office — 220 Pasadena Ave.,

geles and New York.

Inc.

to invest $7,500,000 in additional
subsidiary, Arkansas Power & Light Co.;

the company proposes

its

of

$6,000,000 will be used to repay in full a prom¬
issory note due in January, 1961; and the remain¬
ing proceeds will be held in the company's treasury for
further investments in system operating companies and
for other corporate purposes. Office—2 Broadway, New
York.
Underwriter—To be determined by competitive
Probable bidders: Kidder, Peabody & Co. and
Lynch, Pierce, Fenner & Smith Inc. (jointly);
Blyth & Co., Inc.; Lehman Brothers; The First Boston
Corp., Eastman. Dillon, Union Securities & Co. and
Equitable Securities Corp. (jointly). Bids—Expected to
be received by the company, at its Board Rooim 28th
Floor, 2 Broadway, New York 4, N. Y., up to 3:45 p.m.
(EST), on April 20, I960 or on such later date as may be
fixed by the company. Information Meeting—Scheduled
for April 14 at 11:00 a.m. (EST) in room 240, 2 Rector
St., New York City.
bidding.
Merrill

Midwestern

Indemnity Co.
(letter of notification) 15,832 shares of com¬
stock (par $5) to be offered for subscription by

stockholders of record at the close of business

4, 1960 in the ratio of

one

held.

on

Offering expires

share.

on

March

share for each three shares

May 5, 1960. Price—$17 per
working capital. Address—Cin¬
Underwriter—W. D. Gradison & Co., Cin¬

Proceeds—For

cinnati, Ohio.
cinnati, Ohio.

• Miller & Van Winkle Co. (5/23-27)
April 7 (letter of notification) 75,000 shares of class A
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office—155 Sherman Ave.,
Paterson, N. J. Underwriter—Whitmore, Bruce & Co.,
New York, N. Y.
Mills

Factors

Corp.

due

subscription date and record date will be
supplied
amendment. Price—$2.50 per share.
Proceeds—For
general corporate purposes. Office—9489 Dayton W

in

or

ceeds

(4/18-22)

used^for the

notes

Francisco.

1

the

outstanding
of the

account

Gas Light Co.
(5/17)
$22,00*0,000 of first mortgage bonds, series
Proceeds—Together with $4,000,008 to be re¬

1985.

ceived from the sale of additional common stock to
American Natural Gas Co. (parent) and
treasury funds,
will be used to pay off $11,115,000 of bank

borrowings

for

construction

purposes

funds

for

current

burse

the

company's

and

to

provide

additional

construction

expenditures or reim¬
treasury therefor. Office — 626
Ave., Milwaukee, Wis. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co., Inc.; Kidder, Peabody & Co.;
Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly). Bids
—Tentatively to be received on May 17 at 10:30 a.m.
(EDST) at the offices of the American Natural Gas Co.,
East Wisconsin

Suite 1730, 165
Broadway, New York City.
Meeting—Scheduled for May 16 at 11:00
18th floor, 70
Broadway, New York City.
•

Missile

Electronics, Inc.

Information
a.m.

(EDST)

stock,

—

Lawnservice

For general

11

stock

Life

Union

Insurance

&

of working capital. Office — State Road &
St., Philadelphia, Pa. Underwriter—Hornblower
Weeks, New York.

•

Newark Electronics

account

of

certain

selling stockholders.

Price—$3

per

Proceeds—For general corporate
purposes. Office
—89 West 3rd
St., New York City. Underwriter—Pleas¬
ant Securities Co. of

Newark, N. J.

it Mister Service, Inc.
April 11 (letter of notification) 80,000 shares of com¬
mon stock
(par 20 cents). Price-—$2 per share. Proceeds
—For general corporate
purposes.

Office—338 Lafayette
Underwriter—Jacey Securities

Street, Newark, N. J.
Co., New York, N. Y.
•

with

rights

Corp. (4/18)
Jan. 18 filed
250,000 shares of common stock (par 50
cents). Price—$4 per share. Proceeds—For debt reduc¬
tion and working
capital. Office—Sarasota, Fla. Under¬
writer
Plymouth Bond & Share Corp.,
Miami, Fla.
it Modern Plastic Machinery Corp.
April 8 (letter of notification) 60,000 shares of
class A
—

common

stock

(par $2).

Price—$5

—For general
corporate purposes.

Avenue,

Clifton,

N.

J.

per

share.

Proceeds

Office—64 Lakeview

Underwriter—None.

• Monarch Tile
Manufacturing, Inc. (4/25-29)
March 22 filed
58,337 shares of common stock
(par $5) of

?ulc!i
3?'°2° shares
behalf of the

are t0 be offered for public sale in

issuing company, and the
remaining 28,337
to be offered for the
accounts of certain selling
stockholders. Price—To be
supplied by amendment. Pro¬
ceeds—For repayment of bank
loans and for

shares

are

corporate purposes.
San

general
Office—Oakes Street at Avenue B,

Angelo, Texas.
Underwriter—Rauscher, Pierce &
Co., Inc., Dallas, Texas.
Mutual Employees
25 (letter of

Feb.

stock

repay

current

-NAFI Corp. (4/20)
March 14 filed 200,000
shares of capital stock
(par $1).




on

the

record

date

of

March

New

March

—

•

March

Ott Chemical Co.

(5/3)

for

additional

other

Office —New

Brunswick, N. J. Underwriter —
Corp., New York and Wilmington,

cents).

Jersey Natural Gas Co.

in

connection

with

Office

601

program.

—

North

Central

Co.

&

Pacific
Feb.

8

unspecified)
exchange for outstanding shares of
North Central Life Insurance
Co., of St. Paul. The rate
of exchange is to be
supplied by amendment. Proceeds
to

the

general

funds

of

the

company.

Office—335 Minnesota
St., St. Paul, Minn. Underwriter

—None.

Nuclear Materials &
Equipment Corp. (4/18-25)
March 2 filed 45,000 shares of common
stock (no

par)

of which 4,980 are to be offered
to warrant holders and
the remainder is to be
offered publicly. Price—To be

supplied by amendment. Proceeds—For
equipment and
expansion. Office
Apollo, Pa. Underwriter
—

Moore,
Lynch, Pittsburgh, Pa., and New York City.
—

Leonard &

• Nuclear
Research Chemicals, Inc.
(5/10)
April 1 (letter of notification) 20,000 shares of
common
stock, class A (par $1). Price—$10 per share. Proceeds

debts, to purchase laboratory equipment and
supplies and for working capital. Office—100 N.
Crystal
Lake Drive,
Orlando, Fla. Underwriters—Security Asso¬
ciates, Inc., Winter Park, Fla.; George O'Neill &
Co.,
Inc., Miami Fla. and Roman & Johnson, Fort Lauder¬

dale, Fla.
Oil Shale Corp.
filed 300,000

March 30

•

debentures

due

amendment.

common

outstanding

stock, to be

common stock.

class

April

1975.

A

Price—To

Proceeds—$600,000 will

like amount of
6%% promissory
the balance of the
negotiated

common

stock,

subordinated

be

supplied

by

be used to retire a

notes; $431,250 to pay

price for the minority
interest of Utah Construction &
Mining Co. in Stockton
Elevators, a subsidiary; and the balance for working
capital. Office—62 Townsend
St., San Francisco, Calif.

Underwriters—Dean Witter &
Co., San Francisco and
York, and Hooker & Fay, Inc., of San Francisco,

New

Calif.
•

Patrick County

Canning Co., Inc.

March 25 filed
140,000 shares of
$3 per share. Proceeds—About
to the

payment of certain

ditional

working
52

machinery
capital,

and

(5/31-6/3)

common

stock.

Price—

applied
indebtedness; $25,000 for ad¬
$162,000 will be

equipment; and $118,752 for
and advertising.
Office—

promotion

Broadway, New

York.
Underwriter
G. Everett
Parks & Co.,
Inc., New York.
•
Pearson Corp.
March 30 filed
50,000 shares of common stock. Price—To

"^supplied by amendment.

utilized

to

—

Proceeds—$60,000 will be

the

company's indebtedness to Busi¬
Development Co. of Rhode Island; the balance will
repay

be added to

shares of

of

Pacific Vegetable Oil
Corp. (5/2)
March 24 filed
$2,500,000 of convertible

ness

offered to the holders of its

(5/2-6)

shares

Underwriter—Frank Karasik & Co;,

Inc.

be offered in

added

Co.

100,000

Vancouver, Wash.

The company proposes to offer
142,860 shares for cash sale
at $7 per share. Additional shares
(amount

be

Panel

filed

working capital; for establishment of three addi¬
tional outlets and to
provide additional working capital
for a new
subsidiary. Office—1212 West 26th Street,

Co., New York.
(par $1).

Proceeds—

for

company's con¬
Bangs Ave., Asbury

stock

share.

per

subsequently increased to 150,000 shares (par 50 cents).
Price—$3.
Proceeds—For reduction '* of indebtedness,

the

common

Price—$1

caiptal.

(5/27)

March 11 filed 420,945 shares of

for

equipment, raw materials and working
Office—622 E. Glenolden
Ave., Glenolden, Pa.
Underwriters—Jacey Securities Co., and First City Secu¬
rities, Inc., New York, N. Y.

filed

obtained

—

For purchase of

(4/25-29)

$50, $100, $500, $1,000 and multiples of $1,000. Pro¬
ceeds—To be applied to the
partial payment of shortterm bank loans
outstanding in the amount of $5,000,000
struction

to
properties, for
working capital and
500 Agard Road, Muskegon,
Byllesby & Co., Inc., Chicago,

balance

Office

• Pacemaker
Boat Trailer Co., Inc. (4/25-29)
Feb. 29 (letter of
notification) 300,000 shares of common
stcok (par 10

of

—To

improvements

the

purposes.

Underwriter—H. M.
Illinois.

convertible debentures for each share held. The deben¬
tures will be sold at principal amount in
denominations

to

and

and

Mich.

$3,830,000 of convertible debentures,
series due 1970, to be offered to holders of its outstand¬
ing common stock at the rate of $4 principal amount of

are

(5/2-6)

filed

equipment

Proceeds—To be added to the general funds of
the company and be available for
general corporate pur¬

and

17

$450,000 of convertible subordinated
debentures due May
1, 1970. The company proposes to
offer the debentures for
subscription by common stock¬
holders of record May
1, 1960, at the" rate of a $100
debenture for each 3.11 shares then held. Price—100%
of principal amount. Proceeds—For retirement of a
note,

filed

29

common

development

financing of finished
Office—Scarborough Park,
Underwriter—D. A. Lomasney & Co.,

Ossining, N. Y.

ment.

New

and

New York.

For

Company

for research

eral corporate
purposes, including
and semi-finished inventory.

110,000 shares of class A capital stock,
of which 50,000 shares will be issued
by the company
and 60,000 shares are
outstanding and will be offered
by the holders thereof. Price—To be supplied by amend¬

&

hearing aid in the European

market;
of subminiature
products; and the balance of approximately $100,000 to
be added initially to
working capital and used for gen¬
$35,000

to

Jersey Aluminum Extrusion Co., Inc.
10

per

repay

low-cost

expire at 5:00 p.m. EST on April 21.
general corporate purposes, including
reduction of indebtedness, development of a division,
and mortgage payments. Office—140 Hamilton
St., New
Haven, Conn. Underwriter—None.
Proceeds

to

31,

—To retire

Trademart, Inc.

notification)

200,000 shares of com¬
(par $1). Price—$1.50 per share.
Proceeds—
liabilities and other debts and for
working capital.
Office —1055
Hialeah, Fla.
Under¬
writer—Frank Edenfield &
Co., Miami, Fla.
mon

To

held

(5/9-13)

company's new model hearing aids; $40,000 for
the establishment of
production and sales facilities of a

1,472,754 shares of common stock (par $1)
being offered for subscription at $2 per share by com¬
mon , stockholders
at the rate of three new shares for
shares

Corp.

of the

Price-

New Haven Clock & Watch Co.

each five

Y.

Leland E. Rosemond, President and Board Chairman of
Otarion; $100,000 for dealer and consumer advertising

(5/2-6)

Park, N. J. Underwriter—Allen

Mobilife

Broadway, Nyack, N.
Corp., New York

Boston

share. Proceeds—Company will apply
$150,existing short-term obligations to banks;
$60,000 in payment for the net assets and name of Taconic
Factors, Inc. ,the stock of which is presently owned by
000

Jan. 29 filed

March

share.

Price—$4

supplied by amendment. Proceeds—To be added
to the company's working capital.
Office—223 West
Madison St., Chicago, 111. Underwriter—H. M. Byllesby
& Co., Inc., Chicago, 111.

•

North

First

Otarion Listener

increase

214,500 shares of common stock, of which
200,000 shares will be sold for the company's account
the remaining 14,500 shares will be offered
for the

Office—10

March 28 filed 141,750 shares of common stock
(par 10c).

Rhawn

poses.

filed

struction.

Underwriter—The

40,000 shares will be sold for the company's account
while 80,000 shares will be sold for the holders thereof.
Price—To be supplied by amendment.
Proceeds—For

and

5

share.

Nesbitt, Inc. (4/20)
March 7 filed 120,0,00 shares of common stock, of which

Del.

Feb.

preferred for each 50 shares of common then held; rights
expire at 5:00 p.m. (EDST) on May 2. Price—$100 per
Proceeds—To be applied to the reduction of bank
notes (the proceeds of which were used for construc¬
tion) and the balance will be used for further con¬

Co.

(John J.)

Corp.

(5/9-13)

Orange & Rockland Utilities, Inc..
17 filed 39,165 shares of convertible cumulative
preferred stock, series E (par $100) being offered for
subscription by holders of its outstanding common stock
of record April 14, 1960, at / the rate of one share of

.

•

'

Welders, Inc.

•

(letter of notification) 50,000 shares of com¬
mon stock (par 50 cents).
Price—$4 per share. Proceeds
—For expenses in the operation of an insurance com¬
pany. Address—Montgomery, Ala.
Underwriter—Frank
B. Bateman, Ltd., Palm Beach, Fla.
'■ v
•

OK Rubber

March

29

March

Securities

Rio Grande Avenue, Littleton, Colo.
Underwriter
—Bosworth, Sullivan & Co., Inc., Denver, Colo.

..

National

Tulsa*

Ave.,

Webster

—551

(letter of notification) 100,000 shares of com¬
(par one cent). Price—$3 per share. Pro¬
ceeds—For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y.
v
Jan.

mon

Okla¬

Boston

&

shares common stock (par $10). Price
by amendment.
Proceeds—Together
with the proceeds of a $1,100,000 insurance
company
loan and $700,000 realized from the sale of
installment
notes to its wholly-owned susbidiary finance
company
OK Acceptance Corp., will be used to rediice bank
loans
in the amount of $1,300,000; to repay other
indebtedness
in the amount of $228,600; and the balance of
approxi¬
mately $800,000 will be added to working capital. Office

(4/25)

Corp.

South

Stone

Mar. 29 filed 50,000
be supplied

corporate purposes. Office — Little Rock, Ark.
Under¬
writer—Equitable Securities Corp., Nashville, Tenn.
National

—

—To

offered

be

to

are

supplied by amendment. Proceeds

To be

Laird

(5/16-20)

San

present holders thereof. .Price-

March 17 filed 200,000 shares of common stock.

Milwaukee

•

12 filed 128,329 shares of class BB (non-voting)
stock, of which 43,329 shares are to be offered
for the account of the issuing company and 80,000 shares

To be

March 25 filed

Ta-

common

representing

624

—

Dealer-Managers

Corp., New York, and Bosworth, Sullivan & Companv

April

for

be

Inc., Denver, Colo.

Life Insurance Co.

Old Line

Office

stock.

Okla.

'

March

8 filed 208,460 shares of common stock
($2.50
Price—$11 per share. Proceeds—To purchase out¬
standing stock and for the general fund. Office — NewYork City. Underwriters—Lee
Higginson Corp. and C. E.
Unterberg, Towbin Co., both of New York City.

homa

„

• National

to

Northern

in

capital position. Office—3410 South Lawrence St.,
coma,
Wash. Underwriter — Dean Witter & Co.,(

Underwriter—None.

Oklahoma Gas Co. at the rate of four-fifths of
one
share
of Oklahoma stock for each share of
Northern

payable to banks and $150,000 will
subsidiaries, either as additional equity
the form of advances, and the balance of the pro¬
will be used to augment the company's working
of

invested

be

Beverly Hills, Calif.

it Oklahoma Natural Gas Co.
April 7 filed 233,564 shares of common stock,
offered in exchange for the common stock of

:r

par).

due

Thursday, April 14, 1960

.

by

$1,000,000 of convertible subordinated
April 1, 1975. Price—To be supplied

filed

25

reduction

March 25
mon

(5/2-6)

Nalley's, Inc.

by amendment. Proceeds—$300,000 will be

(4/20)

650,000 shares of common stock (par $10).
Proceeds—From the estimated proceeds of $16,000,000
March 11 filed

stock

•

March

debentures

•

Middle South Utilities,

•

f

The

supplied by amendment. Proceeds—To re¬

bank loan incurred in connection with acquisition of
Chris-Craft Corp. and the balance to be added to the
company's general funds. Office—527 23rd Ave., Oakland,
Calif. Underwriter—Shields & Co., New York.
pay

Calif.

.

(1656)

poses,

working capital for general corporate pur¬

principally, to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,
-

191

Volume

Number 5942

.

.

.

The Commercial

underwriter—R. A. Holman & Co., Inc., New York.

t

I nffering—Expected in June*
March 25

filed 50,000 shares of jcomjnon stock (par $1).

priceprice—To
be supplied^ by^amendment. Proceeds—To re¬
Q^% note given to the V-T Co. in partial payment
tire a
^_a'
uusiness and certain of its assets, and the remainder
of its tb
.

proceeds will be added to working capital.
'^Qg Santa Fe Ave., Los Angeles, Calif. Under0ff-ifrZ^Kidder, Peabody & Co., New York; and Mcof the
°f

net

■\vrite*

■

Ohio

riovplanrl

I

t

Cleveland, Ohio.

Donald & Co.,

Pennsylvania Electric Co. (5/9)
10 filed $12,000,000 of first mortgage bonds, due
i/r v 1 1990- Proceeds—To be applied to the company's
5
construction program, or to partially reimburse its
1
urv
for previous expenditures for that purpose,

Levergood St., Johnstown, Pa. Underwriter
determined by competitive bidding. Probable
! bidders- Halsey, Stuart & Co. Inc.; Kidder, Peabody &
rn
Eastman Dillon, Union Securities & Co., Merrill
Tvnch Pierce, Fenner & Smith Inc. and White, Weld &
ro
(iointly); The First Boston Corp.; Harriman Ripley
Co Inc. and Blyth & Co., Inc. (jointly);; Equitable
Securities Corp. Bids—Expected May 9 at 12 noon New
York time at the offices of General Public Utilities Corp.,
67 Broad St., New York City. Information Meeting —
Scheduled for May 6 between 10:00 a.m. and 12 noon.
office—222
be

To

(1657)

of which

3,588 shares are to be offered for public sale by
issuing company and the balance, being outstanding
stock, by present holders thereof. Price—$11 per share.
the

Tool Industries, Inc. (4/25-29)

Pendleton

and Financial Chronicle

sr

Proceeds—to be added to the
company's working capital
and used for general
corporate purposes. Office—5353
West Armstrong
Ave., Chicago, 111. Underwriters—A. C.
Allyn & Co., Inc., and Shillinglaw, Bolger &

Co., both of

Chicago, 111.
•

Radiant Lamp Corp. (5/2-6)
10 filed 120,000 shares of class A stock.
Price—$5
per share.
Proceeds — To repay a bank loan, and for
Feb.

working capital. Office—300 Jelliff Ave., Newark, N. J.
Underwriter—Amos Treat & Co., Inc., New York.

Rajac Self-Service, Inc. (4/20)
(letter of notification) 100,000 shares of com¬
mon stock (par 10
cents). Price—$3 per share. Proceeds
March 18

—For general corporate
purposes.

Office—11 E. Second

Street, Mt. Vernon, N. Y. Underwriter—Walter R. Blaha
& Co., Inc., Long Island
City, N. Y.
(4/18-22)

during 1959 to provide funds for the
company's continuing program of modernization, im¬
provement and expansion; the balance of the proceeds
600,000 incurred

added to

will be

its general funds.

Washington Street, Butler, Pa.

Office—218 South

Underwriter—None.

Philip Morris Inc.

±

April 12 filed 76,011 shares of common stock, to be dis¬
tributed in connection with * the acquisition of A.S.R.
Products Corp.

of

stockholders

The acquisition has been approved by
both -companies, and the shares were

registered for possible resale by the

new

holders. Office

—New York City.

Plastic & Fibers, Inc.
I Jan. 18 (letter of notification) 85,714 shares of common
stock (par 40 cents).;Price—$3.50 per share.
Proceeds
—For general corporate purposes. Office — Whitehead
I Ave., South River, N. J. Underwriter—Arnold Malkan
6 Co., Inc., New York, N. Y.

H

the issuing company.

by

•

Realty Equities Corp. (4/18-22)
Feb. 2 filed 150,000 shares common stock
(par $1) Price—*
$5.25 per share.
Proceeds—For general corporate pur¬
poses.
Office—New York City.
Underwriter—Sutro
Bros. & Co., also of New York City.
•

Reeves
:

Price—$150
facilities, and

per unit.

Proceeds—For equipping of new
for general
corporate purposes. Office—705 South Fulton
Avenue, Mount Vernon, N. Y.1 Underwriter—Myron A.

Lomasney & Co., New York.

Broadcasting & Development Corp.

•

Premier Industrial
Corp. (4/25-29)
28 filed
212,500 outstanding shares of common
stock (par $1) of which
200,000 shares will be offered for
public sale and
12,500 shares to employees of the com¬
pany by the holders thereof. Price—To be
supplied by
amendment. Proceeds—To
selling stockholders. Office
—4415 Euclid

Avenue, Cleveland, Ohio.

A. G. Becker &
Co.

Underwriter—'

Inc., New York and Chicago.

Premium Acceptance
Corp.
17 (letter of
notification) 200,000 shares of com¬
mon stock
(par $1). Price—$1.15 per share. Proceeds—

for working capital.

Office—212 S. Tryon Street, Char¬
lotte, N. C. Underwriter—R. L.
Hoffman, Charlotte, N. C.

?erv,ce Co. of

arch 2 filed

b

i1,*

b

New Mexico

102,231 shares of

common

$110,000 bank note and for general corporate purposes.
East 44th St., New York.
Underwriter—
Laird & Co. Corp., New York.

common

stock

one new share for each 20 shares held
ecord March 28
with rights to expire on April 20 at

E^T* Tbe remaining 5,000 shares will be offered
Pr^Pi°yees of tbe company. Price—$28.25 per share,
nlipri ?i^pgether with bank borrowings, will be apfor Qtb°w
the comPany's I960 construction program,
tn

corP°rate purposes including the repayment of
Workin«"erm *?ank l°an ^ the amount of $2,000,000, and
(luermi?
ATa?!r * Office—819 Simms Building, Albu3 e, N.
a sW*

Mex.

Underwriter—Allen & Co., New York.

Soundcraft Corp.
filed

Apr

1

& L'Bht Co. (4/20)
$20,000,000 of first mortgage bonds due
* ™ceeds--To be applied to the payment of

iaon

$15 OOo nnn
the b2
V% Promissory note due May 1, 1960, and

incurred

bank loans

?r constnjction purposes, which loans are extC aggr.egate $10,50,0,000 at the time of the bond

Pecteri

sale.

tlle Pa.ymenf °f outstanding

f

trv

bidding p5Triufr — To be determined by competitive
Lehman 5!.?ble b?dders: Halsey, Stuart & Co. Inc. and
Corn.
J?rs (Jointly); Stone & Webster Securities
(jointly)- Si Snry & Co- and The First Boston Corp.
Bids^ FxVti ?r5 .f Lyncb> Pierce, Fenner & Smith Inc.
at 90
Bmaa
be received on April 20 at 12 noon
Meeting c S
tb floor, New York City. Information
•
Pvl !Cheduled for AP"1 14 at 11 a.m.
ci

u

*h

3? fl,^0,u'?inSS,
led

sold

the

on

of

American

common

Stock

Ex¬

of

sale.

Proceeds—To

selling stockholders.
Rd., Danbury, Conn.

Reliance

Manufacturing Co.

(5/2-6)

March 28 filed 150,000 shares of common stock (par
$5),
of which 40,000 shares are to be offered for
public sale
for

account

of

The remaining 110,000 shares
are now
outstanding and are to be offered for sale by
the present holder thereof.
Price—To be supplied by
amendment.
debt.

company.

Proceeds—For
Office—350

repayment

short-term

of

Fifth

Ave., N. Y.
—Glore, Forgan & Co., New York.

Inc.

158,000 shares

(5/2-6)
of




common

stock

(par $1)

-

stock (par $1) to be
stockholders at the

each five

shares held, rights
April. Price—To be supplied by amendment.
new

one

provide

additional

working

capital; to finance

the

initial payments on a tract of land to be used for possible

plant construction, and the balance for general corporate
purposes. Office—822 North Henry St., Alexandria, Va.

V;-'A'

VA AAAV.-

Sierra Electric Corp. (5/23-27)
March 29 filed 100,000 shares of common
stock, of

-

which

the

account

per

share.

of the present holder thereof.
Price—$9
Proceeds—To reduce bank loans and for

working capital.

Office—Gardena, Calif.

Underwriter—

Marron, Sloss & Co., Inc., New York City.

/

■

,•

ic Sigma Chi Alumni Association of Tallahassee,
Inc.

to

offered

be

to

$30,000 of certificates of
alumni, friends members

friends of the fraternity in

denominations

small

as

$100 each, bearing

interest at 3%, due in 30 years.
Price—At par.
Proceeds—To purchase real estate and
for working capital.
Address—P. O. Box 1182, Talla¬
hassee, Fla. Underwriter—None.

as

•

Simmonds Precision Products, Inc. (5/16)
30 filed 112,500 shares common stock
(par $1), of

Mar.

which 100,000 shares are to be offered for public sale
by

issuing company and 12,500 shares being outstanding
stock, by Geoffrey R. Simmonds, President. Price—To be
supplied by amendment. Proceeds—To be added to com¬
pany's working capital, thereby reducing the amount

Underwriter

of

funds

credit

required to

agreement

be

and

borrowed

under

putting the

its

company

revolving
in a more

favorable position to secure, through borrowings, such
additional funds as may be required from time to time.
Office—105 White Plains Rd., Tarrytown, N. Y.
Under¬

writer—Shearson, Hammill & Co., New York.
•

Sire Plan of

Normandy Isle, Inc. (5/16)
of 10-year 7% debentures and
4,500 shares of $3.50 cumulative, non-callable, partici¬
pating preferred stock (par $5), to be offered in units,
each unit consisting of one $50 debenture and one
pre¬
March

9

filed

$225,000

ferred

share.
Price—$100 per unit.
Proceeds — To fi¬
acquisition. Office—Ingraham Bldg., Miami, Fla.
Underwriter—Sire Plan Portfolios, Inc., New York.

nance

Renner, Inc. (4/25-29)
11 (letter of notification)
75,000 shares of com¬
stock (par 50 cents). Price—$4 per share. Proceeds
—For working
capital.
Office — 1530 Lombard St.,
Philadelphia, Pa. Underwriter — Stroud & Co., Inc.,
March

Smilen Food

mon

Philadelphia, Pa.

offer these

sisting of

securities

of

$1,000

one

to reduce

public sale in units, each con¬
and a warrant for 50

debenture

Price—$1,000

bank loans.

per

unit.

Proceeds—To be

initially

Office—Church Road and Green¬

wood

Ave., Wyncote, Pa. Underwriter—Stroud & Co.,
Inc., Philadelphia, Pa.-.A*;'/.»./.,*«>. V /(«- *< ^
.
Savannah
The company

Electric

(par $5),

to

each

1960.

for

Power

Co.

13

shares

held

of

record

on

The offer will expire on

Price—$24.50
of

&

is offering 87,950 shares of common stock
its stockholders on the basis of one new

share

bank

per

share.

loans made

for

April 18 at 3:30
Proceeds—To repay

construction

March
p.m.

purposes.

a

29,
EST.

portion
Office—

27

West Bay Street, Savannah, Ga. Underwriters—The
First Boston Corp. and Stone & Webster Securities Corp.,

Schaevitz

Engineering
(letter of notification) 100,000 shares of class
common
stock (par 10 cents).
Price—$3 per share.

March 29
A

Proceeds—For

S.

Route

130

Township, N. J.
&

March

25

Stores, Inc.

filed

in

(5/2)

association

with

Heritage Industrial
200,000 shares of Smilen common (par $1) and
200,000 shares of Heritage (par $1). It is proposed to offer

Corp.
these

Finance

Co., Inc. (5/2-13)
March 16 filed $1,500,000 of 6V2% debentures due May
1^
1975 and warrants for the purchase of 75,000 class B
common shares up to
April 30, 1970. It is proposed to

n

a

be

outstanding shares

otherwise from time to time at prices current

or

the time

at

125,000

both of New York.

Marclfn ?i?UTlfower

common

Pearson,

.

Reeves

added to the company's general funds and used

(par $5)

shares being offered for subscription

I holders of the company's outstanding

nf

stock

to

a

Office—304

class B shares.
u

share for

common

—

Proceeds—To retire bank note indebtedness; for the pur¬
chase of additional machinery, equipment and
facilities;

and

per share and distributed as a
dividend to its 2,800
stockholders.
Price—$5 per share. Proceeds—To pay

Ritter

feb.

rate of

indebtedness

(5/31-6/3)

stock, of which
300,000 shares are to be publicly offered and 187,392
shares are to be purchased by Christiana Oil at
$4.75

bank

March

;

76,600 shares of
offered for subscription by

April 5 (letter of notification(

March 30 filed 487,392 shares of common

de¬

(par 20 cents) to be offered in units consisting of
$100 debenture and 15 common shares.

—

Broadway, New York, N. Y. Underwriter
Murphy & Co., Inc., New York, N. Y.

80,000 shares are to be sold for the account of the
issuing company and 20,000 shares are to be sold for

Office—15 Great Pasture

stock

(4/25-29)
•« •'
(letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds
For general corporate purposes.
Office — 693
23

For general corporate purposes. Office —
Village of
Greene, County of Chenango, of New York. Underwriter
—George D. B. Bonbright & Co., Rochester, New York.

Price—To

one

Service Instrument Corp.

—

change

common

•

March

Underwriter—None.

stock.

bentures, due April 1, 1970, and 37,500 shares of

ment. Proceeds—To retire a term bank
loan, and for
working capital. Office—17 Bridge St., Watertown, Mass.
Underwriter—Peter Morgan & Co., New York.

Raymond Corp. (4/22)
A
(letter of notification) 15,000 shares of com¬
mon
stock
(par $5). Price — $20 per share. Proceeds
March 22

American Depositary Receipts for 60,000
ordinary regis¬
tered shares.

(5/2)
of convertible subordinated

Lumber Corp. (4/25-29)
$300,000 of 6V2% subordinated convertible
debentures, due April 1, 1970, and 30,000 shares of com¬
mon stock, to be offered in units,
each unit consists of
$50i0 principal amount of debentures and 50 shares of
common stock (par $1). Price—To be supplied by amende

•

—

30

Circuits, Inc.

Seaboard Plywood &

to expire in

March

Precision

•

Feb. 25 filed

The remaining 37,290 shares
are
now
outstanding and are to be offered by the
present holders thereof.
Price
To be supplied by
amendment.
Proceeds—For additional working capital.
Office
150-26th Ave., S. E„ Minneapolis
14, Minn.
Underwriter—Dean Witter & Co., New York and Minne¬
apolis.

* Plessey Co. Ltd. of England
April 11 Morgan Guaranty Trust Co. of New York filed

March 7 filed
$250,000

pected in mid-May.

Feb. 25 filed

—

Peoples Telephone Corp.
March 29 filed 15,250 shares of common stock (par $50)
to be offered to stockholders of record on May 13, 1960,
at the rate of one additional share for each two shares
then held with rights to expire at 3:30 p.m. (EDT) on
June 15. Price—$75 per share. Proceeds—$1,100,000 will
be used to repay in part short-term bank loans of $1,t

Office-r-225 Erie, St., Lancaster, N. Y. Underwriter—The
Cleveland Corp., Cleveland, Ohio.
Offering—Ex¬

First

Servonics, Inc.
Rap-in-Wax Co.

March 18 filed 107,290 shares of common stock ($1 par),
of which 70,000 shares are to be offered for
public sale\

41

general corporate purposes.
and

Schaevitz

Boulevard

Proceeds—Smilen

proceeds
for
from

ventory

and

balance

tage

will

use

to

Smilen for

structed

for

debtedness

(par $1), of

issuing company and 107,680 shares, being outstanding
stock, by the holders thereof, 8,000 shares are to be
reserved for allotment to directors, officers and em¬
ployees of the company. Price — To be supplied by
amendment. Proceeds—To pay off $300,000 of bank in¬
debtedness and for general working capital purposes.

the

to

share

share

bank

repay

corporate
the

of

in the three

due

Brooklyn,
Company.

N.

Y.

by

a

of

the

contract

loans;

purposes.

stock

as

supermarkets to

others;

$25,000

to
balance

and
Heri¬

follows:

be

con¬

in¬
for general
Metropolitan Ave.,
Underwriter—Federman, Stonehill &

Smilen;

corporate purposes.

pay

an

and the
Office — 47-02

it Socony Mobil Oil Co., Inc.
April

8 filed $22,050,000 of Interests in the company's
Employees Savings Plan, together with 490,000 shares of
capital stock which may be purchased under said plan.
Office—New York City.
Southeastern

000

Security Insurance Co.
2,133,333 shares of common stock, of
1,633,333 shares are to be publicly offered; $500,25

of

filed

these

restricted

stock

use

Smilen

shares

are

stock

options
Price — $3

employees.

common

its

under

and
commissary
Inc.; $300,000
for
in¬
opening of three new

Stores,

general

its

of

supermarkets
for

$300,000
for

$95,000

payments

$175,000 for construction and equipping of a supermar¬
in Franklin
Square, L. I., to be leased to Smilen;
$500,000 to purchase fixtures and equipment to be leased

which

which 62,000 shares are to be offered for public sale by

use

ket

Pennsauken

•

supplies

supermarkets;
the

will

remaining

of two
Windmill
Food

March

Underwriter—Woodcock, Moyer, Fricke

for

purchase

Address—U.

French, Inc., Philadelphia, Pa.

Scott Aviation Corp.
Mar. 29 filed 169,680 shares

securities
for
public sale in units, each unit
consisting of one share of Smilen and one share of
Heritage stock. Price—To be supplied by amendment.

reserved

to

for

the

management

granting
officials

of

and

per share for public
offering.
capital and surplus. Office—707
St., Knoxville, Tenn.
Underwriter—Lucien L.
Bailey & Co., Knoxville, Tenn,?;
»
:
«

Proceeds—To increase
Market

•

Southern

Nevada Telephone Co.

(5/2-6)
100,000 shares of $25 par cumulative
convertible preferred stock. Price—To be supplied by
March

16

filed

•

,

v

Continued

on

page

42

42

Taylor Devices, Inc. (4/18-22)
23 filed 18,705 shares of common stock to be
fered for subscription by common stockholders on
Dec.

Proceeds

retire

To

—

some

$2,000,000 of

continu¬
ing construction program. Office—125 Las Vegas Blvd.
South, Las Vegas, Nev.
Underwriter—Dean Witter &

hank loans and to finance in part the company's

New York.

Co. of San Francisco and
•

Inc. (5/2-6)
aggregate of $13,500,000

Southwest Forest Industries,

Jan.

filed

29

not

exceed

to

of subordinated income

stock;

mon

such

and

to

an

debentures, due 1985, and com¬

offered

be

Price—To

Proceeds—For

amendment.

such debentures
be supplied by

units of

in

stock.

common

and the
Office — 444 First National
Ariz.
Underwriter—White,

construction

working

of new plant.
Building, Phoenix,
Weld & Co., New York City.
Bank

'

capital

.

Southwest
March

by

Indemnity & Life Insurance Co.
filed 238,590 shares of common stock.

29-

company

common

rate

of

one

of

stock

The

for

subscription
stockholders of record May 1, 1960, at the
share

new

Unsubscribed
some

this

offer

to

proposes

be

offered

directors

are

shares

each

for

shares will

whom

then

to certain

stockholders

and

held.

persons,

of

the

together with stock purchase warrants for
23,859 shares, for purchase for investment. Price—To be
supplied by amendment. Proceeds—To be used for the
company's general insurance business, thus enabling the
company to acquire additional reinsurance agreements
company,

with other insurance

and

meet

legal

companies, service such agreements

reserve

corporate

•

Continued from page 41
amendment.

requirements

with

respect

to

six-tenths of one share for each share held. Price
per share, with rights to expire 14 days from
date.
Proceeds — To repay a short-term
loan, for additional working capital, and to establish ex¬
panded executive sales and manufacturing personnel
and to continue research and development, and the bal¬
ance to lease or purchase additional factory and office

Producers, Inc.

and

the balance for working capital.
Mockingbird Lane, Dallas.
•

Spartans

Office—2720 West

(5/16-20)
April 11 filed 100,000 outstanding shares of common
stock Price—To be supplied by amendment. Proceeds—
To selling stockholder. Office — 915 North Citrus Ave.,
Los Angeles, Calif. Underwriter — Dean Witter & Co.*
• Telecomputing Corp.

Inc. (5/2-6)
March 31 filed 120,000 outstanding shares of common
stock (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office — 1 West 34th
St., New York. Underwriters—Shearson, Hammill & Co.,
and J. C. Bradford &
•

Co., both of New York.

Spring Street Capital Co. (4/25-29)
3,000 shares of common stock (par $100)

to be offered in units of five shares at $1,000 per share.
Proceeds—For loans to and the purchase of securities
of certain

business

It may also use a portion
the costs and expenditures inci¬
dental to its operatons until such time as it has an in¬

of the proceeds to

concerns.

pay

from its loans and

come

investments.

Office—650 South

Spring St., Los Angeles, Calif. Underwrriter—William
Staats & Co., Los
Angeles, Calif.

R.

Squan

Marina, Inc. (5/9-13)
March 18 (letter of notification) 150,000 shares of class
A common stock (par $1).
Price—$2 per sjiare. Proceeds
—For general corporate purposes.

Address—Route 70 &

Upper Manasquari River Bridge, Brielle, N. J.
writer—B. Fennekohl & Co., New
York, N. Y.
• Standard

Oil Co.

Under¬

(Ohio)

shares

and

10,000 preferred shares (series A, 3%%,
$100 par), which may be acquired pursuant thereto. Of¬

fice—Midland
Straza

Building, Cleveland, Ohio.

Industries

Industries

March 14 filed 230,000 shares of capital stock
(par $1).
be
supplied by amendment. Proceeds—For

Sun

26 filed $1,000,000 of 6% subordinated
debentures
April 1, 1975, and 100,000 shares of common stock
(no par), to be offered in units of $100 of debentures
,

due

and

10

shares

of common stock.
Price—$100 per unit.
Proceeds—To be used in reorganization.
Office—366
Fairview Ave., Barberton, Ohio. Underwriter—McDon¬

ald &
•

Co., Cleveland, Ohio.

Sunair

Electronics, Inc. (4/18)
Dec. 28 filed 200,000 shares of common stock
(par $.10).
Price—$3.00 per share. Proceeds—For new
equipment,
construction, and working capital. Office
Broward
County International Airport, Ft. Lauderdale, Fla. Un¬
—

derwriter—Frank Karasik & Co., Inc., of New York
City.

Superior Electric Co.
(4/25-29)
March 17 filed 150,000 shares of common stock
Price—To be supplied by amendment.
construction.
Office—Bristol, Conn.
Higginson Corp., New York City.

(par $1).
Proceeds—For
Underwriter—Lee

Szemco, Inc.
(letter of notification) 200,000 shares of com¬
mon
stock (par 10 cents).
Price — To be supplied by
amendment, and not to exceed $1.50 per share. Proceeds
—For working capital. Office—c/o
Otto Edward
Szekely,
112 Washington
St., Commerce, Ga. Underwriter—Frank
B. Bateman,
Ltd., Palm Beach, Fla.
•

Tayco Developments, Inc.

•

Dec. 23 filed 5,390 shares of

stock

of

common

Price

stock.

To

—

offering

per

share, with rights to expire 14 days from

date.

Proceeds

additional patents

on

—

present

and expand research and
of liquid

For

capital

and

to

secure

inventions, and to continue

development work in the field
compressibility devices and other areas. Office
—188 Webster
St., North Tonawanda, N. Y. Underwriter
-C. E. Stoltz &
Co., New York.




Texas.

March
fered

applied to

Tenax, Inc.

Feb.

16

cents).

filed

United

Bankers Life Insurance Co., Inc.
(letter of notification)) 114,400 shares of com¬
mon
stock (par $1). Price—$2.05 per share. Proceeds—
For expenses in the operation of an insurance
company.

Office—214

United

150,000 shares of common stock (par 10
per share.
Proceeds—For expansion
and

food

sale

Park

Avenue, New York City.
Lomasney, New York City.

business.

of

indebtedness

and

general

16

stock

7

Thermal Industries of
26 filed

Price—$6
company's

Florida, Inc.

120,000 shares of

per

share.

general

common

Proceeds—To

reserves.

(4/25-29)
(par $1).

be

added

to

Office—Miami, Fla.

the

Un¬

derwriter—Peter Morgan & Co., New York.
Thurow

Electronics,

Inc.

March 28 filed 200,000 shares of class A
common stock,
which 100,000 shares are to be offered for
public
sale by the issuing
company and the balance by H. M.
Carpenter, President. Price —$3 per share. Proceeds —
To be used as additional
working capital for inventory
and
business expansion purposes.
Office—121
South
of

Water, Tampa, Fla. Underwriter—Donald V. Stabell, of
St. Petersburg, Fla.
11

filed

$600,000

of

mortgage sinking fund
bonds, series B, due December, 1969, (with
warrants).
Warrants attached to each $1,000 bond will entitle
hold¬
ers to purchase 20 shares of
class A common stock at an
initial price of $11 per share.
Price—100% of principal
amount.
Proceeds
To pay $420,000 due to Western
Electric Co., Inc.; and the balance
for general corporate
purposes.
Underwriters—J. Cliff Rahel & Co.,
Omaha,
Neb. and The First Trust Co. of
—

Tourist Industry
March 22.iiled

,

Development Corp.

$2,250,000 of 7% subordinated debenture
stock, due July 1, 1978, to be offered in
denominations
of $500 and
$1,000 and multiples of $1,000. Price—At
100% of principal amount.
Proceeds—For general corpo¬

rate

purposes,

cured

including hotel

and

restaurant loans

se¬

by real estate mortgages.
Office—Jerusalem, Is¬
Underwriter—None.

Transcontinental Gas Pipe Line
Corp. (4/20)
14 filed
$35,000,000 of first mortgage bonds due
1980 and 800,000 shares of
common stock
(par 50

March

cents).

Prices—To be supplied
by amendment. Proceeds—To

re¬

fund debt incurred for
construction. Office—3100 Travis

St., Houston, Tex.
Underwriters—White, Weld & Co. and
Stone & Webster Securities
Corp., both of New York.
•

Trans Tech

Systems, Inc. (5/31)
29
filed 65,000 shares of common
stock
(par
cent). Price—$10 per share. Proceeds—For
general

March
one

subordinated

capital shares. Price—To be supplied by amend¬

and

sale

of

the

units.

Office—425

Brea

Avenue, Inglewood, Calif,
Brothers, New York City.
United

Industrial

■

South

La

Underwriter—Lehman

■'

7 \\ 7

<

.

Corp.

March 21 filed 88,017 shares of series A convertible
pre¬
ferred stock, 614,130 shares of common

stock, and 16,500
-According to (the
prospectus, 88,017 shares of preferred and 88,017 shares
of common stock may be offered for sale
by the present
holders thereof, namely 34,978 preferred and common
shares by Bernard
Fein, a Director, and 53,039 preferred
and common shares
by B. S. F. Co., 13% of whose stock
is owned by Maurice
Goodman, a Director, 16,500 war¬
rants and 16,500 common shares are issuable to H. L.
common

stock

purchase

Federman and

Herman

warrants.

Yaras in

payment of

a

finder's

fee incurred in connection with the
merger.

chase warrants
the basis of
common

reserved

for

stockholders of
at

evidences

$17

issuance

common

debentures

option plan.

Stock pur¬
distributed prior to the merger on

warrant for each share of the
to

now

common

Additional
of

were

one

stock

warrant

share of

first

(5/16-20)

convertible

Proceeds—Approximately $1,000,000 will be used

issuance

each

Tip Top Products Co.
Feb.

of

prior to the

Pro¬

stock

$6,000,000

for general corporate
purposes, and the balance will be
distributed to holders of the capital stock

com¬

engineering, design, advertising and working
capital. Office—1060 Broad St., Newark 2, N. J. Under¬
writer—Pearson, Murphy & Co., Inc., New York, N. Y.

Feb.

filed

30

and two

ceeds—For

•

—

corporate

debentures due April 1, -1975, and 120,000 shares of cap¬
ital stock, to be offered in units of
$100 of debentures
ment.

7—

Leighton, a
share and the remainder is to be

United Financial Corp. of California

March

expenses.

(letter of notification) 200,000 shares of
(par 10 cents). Price—$1.50 per share.

Sheldon

to

purposes. Office—Orange, N. J. Un¬
derwriter—Darius, Inc., New York City.

Thermal-Aire of America, Inc.

March

per

stock, of which

common

offered

publicly offered. Price—To be supplied by amendment.
For new equipment, advertising, and other

Office—Houston, Texas. Underwriter—Dillon, Read &
Co., Inc., New York City.
Offering — Expected late in
May.

mon

be

to

are

director, at $2.50
Proceeds

construction

(4/18-22)

110,000 shares of

10,000 shares

Office—375

Underwriter—Myron A.

for

Components, Inc.

March 2 filed

• Texas Eastern Transmission Corp.
«
April 11 filed $25,009,000 of debentures, due 1980. Price
—To be supplied by amendment. Proceeds—For the re<duction

W. 20th St., Hutchinson, Kan. Underwriter
Fidelity Life Insurance Co., Kansas City, Mo.

—National

(4/18-22)

freezer

Office—1717 California St.,
Underwriter—None.

March 23

common

Price—$4

issuer's

capital and surplus.

crease

Denver, Colo.

(4/25-29)
stock.
Price—$3 per share.
Proceeds—For general corporate
purposes.
Office—880 Bonifant Street, Silver Spring,
Md.
Underwriter—A. T. Brod & Co., New York City.
shares of class A

150,000

50,000 shares of capital stock, to be of¬
subscription by holders of outstanding stock

in the ratio.of one new share for each five• shares held

Teletray Electronics Systems, Inc.
filed

Insurance Co.

filed

11
for

Price—To be supplied by amendment. Proceeds—To in¬

,

27

Life

United American

be

and

upon

shares

exercise

Oct.

these

of

warrants.

conversion
under a stock

issuable upon

are

preferred

Office—5221

the

company's
28, 1959;
right to purchase Vi

record

share, and 509,613 shares are

per

stock

West

geles, Calif.

and

102nd

Street, Los An¬
■ r: 7

^7.7-.

United States Boat Corp.
28 filed 350,000 shares

March

(5/9-13)
of

common

•

stock

to be

publicly offered.

Price—$2 per share. Proceeds—$221,826 will be applied to the
repayment of loans to United
States Pool Corp. which were used for
general corporate
purposes, and the balance will be utilized for working
capital, including a later repayment of $45,000 to U. S.
Pool Corp.
Office — 27 Haynes Avenue, Newark, N. JUnderwriter—Richard Bruce & Co., Inc., New York.
Universal

Fabricators, Inc. (4/25-29)
7
(letter of notification) 60,000 shares of common
(par $1).
Price — $5 per share.
Proceeds —For

Feb. 29
stock

to be offered

subscription by common stockholders at the rate of
ten-seventy-fifths of a share for each share held. Price

—$28.75

balance will be added to working capital.
Office—232
Superior Ave., Cleveland, Ohio. Underwriters—White,
Weld & Co. Inc., Chicago and New York; The Ohio
Company, Columbus, Ohio; and Sanders & Co., Dallas,

company's construction program. Office—445 Fair¬
field Ave., Stamford, Conn. Underwriters — Ladenburg,
Thalmann & Co., Bear Stearns & Co. and Sutro Bros.,
all of New,York,
7:

(4/18-22)

common

supplied by amendment. Proceeds—To¬
gether with bank loan, will be used to repay a $6,075,,000 balance
on
an
outstanding bank loan, and the

the

of

($1 par);

be

Price—To

supplied by
amendment. Proceeds—For repayment of current credit

•

(4/20)

common

shares

•

Financial Corp.

Union

March 11 filed 325,000 shares of common stock

$1,000 debenture (with 5-year warrants to purchase
shares initially at $15 per share) and 40

a

20

Office—511 Securities Bldg.,, Seattle, Wash.

operations.

Underwriter—H. P. Pratt & Co., Inc., Seattle, Wash.

TeLeregister Corp. (5/2-6)
30 filed $6,000,000 of 6%
subordinated sinking
(with attached warrants)

rael.

for

general corporate purposes. Office—175 I. U. WilAlbertson, L. I., N. Y. Underwriters—Amos
& Co., Inc. and Martinelli, Hindley & Co.,
Inc.,
York, N. Y.;( - *
,
lf>

Tungsten Mountain Mining Co.
(letter of notification) 50,000 shares of common
(par $1) to be; offered first for subscription by
stockholders on the basis of one new share for each eight
shares held. Price—$2 per share. Proceeds—For
mining

March

Lincoln, Neb.

March 28

150,000 shares of com¬
Price—$2 per share. Proceeds

stock

Co., Inc., N. Y. C.

Rubber Co.

Feb.

New

standing bank loan of $700,000 and to provide additional
working capital, to be used in part to reduce outstand¬
ing accounts payable. Office—35-16 37th Street, Long
Island City, N. Y.
Underwriter—Milton D. Blauner &

Price—To

general corporate purposes and working capital. Office—
790 Greenfield Drive, El
Cajon, Calif. Underwriter—J.
A. Hogle & Co., of Salt Lake
City and New York.

(par 10 cents).

lets Road,

Corp.

Offering—Imminent.

(4/18-22)

(4/15)

Feb. 15

•

April 8 filed $2,960,000 of interests in the Sohio Em¬
ployees Investment Plan, together with 35,000 common

&

(letter of notification)

15

stock

Treat

(4/25)
March 21 filed $1,000,000 of 6V2% convertible subordin¬
ate
debentures due
1970.
Price —100% of principal
amount.
Proceeds—To be used to eliminate an out¬

Jan.

March 1 filed

Blvd., Los

Lomasney

—For

City and Los Angeles.

Telectro

agreement with bank and the balance will be

Industries,

Wilshire

Tri-Point Plastics, Inc.

mon

of

Price—

Proceeds—For the drilling of three wells

share.

per

5505

—

Transworld Equipment Corp.

March

and 240,000 shares of common stock (no par). These secu¬
rities are to be offered for sale in units, each consisting

March 23 filed 700,000 shares of common stock.

•

Tonawanda, N. Y.

Cedar

Springs, Dallas, Tex. Underwriter—None.

Office

purposes.

(letter of notification) 139,832 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For general corporate purposes.
Office—119 W. 26th
Street, New York 1, N. Y. Underwriter—Michael Fieldman, 82 Beaver Street, New York City.

Underwriter—C. E. Stoltz & Co., New York.

New York

Thursday, April 14, 1960

Jan. 25

offering

fund debentures, due May 1980

Southwestern Oil

•

—$28.75

Office—188 Webster St., North

.

Co., New York.

basis of

space.

.

.

Angeles 48, Calif. Underwriter—Myron A.

of¬
the

additional insurance in force thus acquired. Office—2013

$2

Chronicle

The Commercial and Financial

(1658)

general corporate purposes. Office—1827 Boone Avenue,
Bronx 10, N. Y.
Underwriter—S. Schramm & Co., Inc.,
New

York, N. Y., has withdrawn

underwriter

is

the

James

as

underwriter. New

Co., New York City.

Universal Marion Corp.
29 filed 31,361 shares of
4V2 % cumulative pre¬
ferred stock ($100 par). Price—To be offered for sate
in the over-the-counter
market, or otherwise by publi
March

or

private

or

prices which

sale

at

$95

may

per share,
be obtained.

or such
lesser pric
Proceeds—To selling

Number 5942

Volume 191

.

.

.

The Commercial and

Financial Chronicle

(1659)
Florida

Office—602

Bldg.,

Jacksonville,

s'W'l!ndeTwritcr—None.

writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa.

Uranium
Reduction Co. (5/2-6)
Jrai
"ra
i!ilori
onn 000
outstanding
31 filed 200,000 outstanding shares of common
Ut««
Kr»
Acl
Ktir
av\/4
.1
cento j. rnw—xu
/nar 1U cents;,
Price—To be
uc dupijucu
supplied by
uy
cuucnuamend-

•

•

;

/\

\

_

T'

aa

a

I

on

i

r\ w~*

r

stock

Proceeds — To selling stockholders. Office — 557
SB 'security Bldg., Salt Lake pity Utah. Underwriterf

l

Yonkers,

drawn

Buildings Corp. (5/2-6)
filed $20,000,000 of sinking fund debentures
? ith attached warrants to purchase 800,000 common
h res)'and 400,000
shares of common stock. The offer•7will be made only in units, each unit consisting of
M $100
principal amount of debentures with an atI phed warrant to purchase four shares of common stock
!h two shares of common stock. Price—To be supplied
r;amendment. Proceeds—To repay loans, defray con¬
ation costs, and general corporate purposes. UnderOris

"^

xViewlex,

(5/16)

connection
and

None.

Properties,

Broad

Waltham Watch Co.
March 30 filed
$1,500,000

to

460

of common

stock.

Street

12th

Price

tions

the

warrants.

The

nprin^V?nSi0Ckh0rl?erS

^

Jaf 2qVin^Uo£^ries

CorP- (4/25-29)

rants fnr

shares of

n? 300'000

industrial

/

common

used to retire

r-fii/1

Angeles
York

Underwriter—A.

City

*hMSffr?

offered 1
shares of
each five

pire

,ncshores of

snnifu,bscflphon
ohQb ?Cr on

price-$23nir

u

shares of

will

>

Avriter

stock and

debts,

PST

subnrrfi„
n„r

with

York

equioment, and
Boulevard, Los

30; rights to

(3:30

p.m.

V

sham

principai
?er share

1

p»^

Por

the

debentures,

the 85»000
c5edsr~P°r general
,

common

shares at

lC0%'«of
shares, $6

time in April or

May.
Co., New York City.

over¬

8

&

issue

common

G.

Kletz

&

Co.,

of

New

Electric Co.

|

|-

pected during the first half of 1960.
Bank

of

(par $10), being offered to
one

new

share for each five shares then held; rights expire April
at 3:00

(PST). Price—$40 per share. Proceeds—
capital and surplus. Underwriter—Blyth &

n.m.

increase

Black
*

Feb., 11 it

Hills
was

Power & Light Co.
announced that the Federal Power Com¬

mission has authorized this

utility, of Rapid City, S. D.,

issue

7,727 shares of common stock (par $1) as a
dividend to its present common holders. No frac¬
tional shares will be issued, and stockholders will have

of buying the additional fractional interest re¬
quired to make full shares, or to sell their fractional in¬
terests
On March 11 the company also filed for FPC
the option

approval to issue $1,000,000 of first mortgage bonds, due
1990.

Feb.

company

expects

to

Underwriter
To be determined
by competitive
Probable bidders: Halsey, Stuart & Co.
Inc.
First Boston Corp.
(jointly), and Morgan Stanley &
Bids—Expected to be received on June 14.

and

—

Co.

Consolidated Research & Mfg. Corp.

Dec.

16

it

August
lic

was

as

reported

that this firm, founded last
corporation, plans its first pub¬
in the form of a common stock
offering

Delaware

a

financing

scheduled for next spring. Business—The
company produes spray containers to
combat ice, snow, and
fog.
Proceeds—For expansion. Office—1184
Chapel St., New
Haven, Conn. President—Marvin Botwick.

Consumers Power Co.
March 2 it

was

reported

that this

is planning

company

to raise new funds

probably from the sale of first mort¬
bonds and debentures. Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
gage

Stuart & Co.

Inc.; Morgan Stanley & Co.; White, Weld
& Co. (jointly); First Boston
Corp.
atid'Harriman Ripley & Co.
(jointly).
Co.

and

Shields

Deckert
March

Dynamics,

16 it

stock

mon

Proceeds

—

Inc.

was

announced

are

expected

For

general

that

to

100,000 shares of

be

filed

corporate

in

•

com¬

early

purposes.

May.

Office

Palmyra, Pa. Underwriter—Plymouth Securities
New York City.
/

—

Corp.,

ESectrada Corp.

April 5 it

was

corporation
March 29.

announced, due to

filed

400,000

shares

SEC

an

of

error

that this
stock

common

on

Actual

filing of the issue is expected to occur
during the week of April 18. Underwriter—Bache &
Co.,
York.

Gas

Co.

16

300,000 from 100,000 and to issue
preferred

series.

Proceeds—To

a

help
the

finance

Allies,

1960

construction.

Pittsburgh,

Florida

Power

non-convertible

new

be

used

proximately $5,000,000 in short-term

to

bank

Office

—

repay

loans

ap¬

and

Boulevard

to

of

Pa,

Corp.

March 10 it

was reported that
$25,000,000 of first mort¬
bonds will be sold by this utility, possibly in the
quarter of this year. Proceeds — For new con¬

Underwriter—To
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
and Merrill Lynch,
Pierce, Fenner & Smith Inc. (joint¬
ly); First Boston Corp.; Eastman Dillon, Union Securi¬
be

determined

ders:

ties & Co. and Harriman

Florida

March

15

Power
it

Ripley & Co. (jointly); Lehman
(jointly).

was

&

Light

reported

Co.

lhat

the company will need
about $25,,000,000 of new money. The nature of the secu¬
rities to be issued has not as
yet been determined.
Ford

Motor

March 28 it

Credit

Co.

reported that this company is develop¬

was

ing plans for borrowing operations, which may include
the issuance of debt
securities, and possibly occur later
this year.

Office—Detroit, Mich.

9

tration
with

it

was

of

the

(11/3)

announced

$12,000,000
SEC.

of

that

the

30-year

Underwriter

company

first

To

plans regis¬

mortgage

bonds

be

determined
by
Probable bidders: Halsey, Stuart &,
Co. Inc.; Morgan Stanley &
Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
—

competitive bidding.

(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled

for

Nov. 3.
Gulf
Dec.

9

tration
year

Sept.

26.

Bids—Expected

to

be

received

on

Information Meeting—Scheduled for Oct. 31.
Power

it

was

with

bonds.

Co.

(7/7)

announced
the

SEC

of

that the

plans regis¬
mortgage 30determined by com¬

company

$5,000,000

Underwriter—To

be

first'

petitive bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Equitable Securities Corp.;
Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Smith Inc.;

Central ICIinois

the

bidding.

Dec.

authorized the sale of 256,930 addi¬

shareholders of record March 29 at the rate of

19

that

$50,000,000 oi first refunding mortgage bonds, due

Georgia Power Co.

California

tional shares of capital stock
-

reported

Brothers and Blyth & Co.

announced

March 29 this bank

was

struction and repayment of 1 tank loans.

company will

City.
Gas

(6/14)

it

1990.

gage

reported that in April this company is
file approximately $500,000 of common

was

&

fourth

;

announced that the

Underwriter—Michael

Baltimore

Underwriter—Kidder, Peabody

Columbia Gas System, Inc.
March 11 it was announced that
further debt
financing
is planned for later in the
year. Underwriter—To be de¬
termined by competitive
bidding. Probable bidders: Hal¬
sey, Stuart & Co., Inc., Merrill
Lynch, Pierce, Fenner &
Smith, Inc., and White, Weld & Co.
(jointly); Morgan
Stanley & Co.; Lehman Brothers., Eastman
Dillon, Union
Securities & Co., and
Goldman, Sachs & Co. (jointly).
Consolidated Edison Co. of New York

stockholders approved a proposal to increase
the company's number of authorized
preferred shares to

was

to

was reported that this
company is expected
undetermined amount of common stock some¬

an

March

2%

warrants

to file

Equitable

by J. Theodore Wolfe, Presi¬
dent, that the company plans record construction expen¬
ditures of $50,00,0,000 during
1960, probably financed
through the sale of first mortgage bonds. Offering—Ex¬

EST).

lllcludin<r'iu„
corporate purposes,
tion> and enf,i"eductlon °.f indebtedness, sales promo1
Pment.
Office—Myerstown, Pa. Under¬




.

Co., Inc., San Francisco, Calif.

debentures, due 1977, with
n°? 10'000 additional common

amni,

it

March 3 it

ex-

(4/25-29)

.

was

maximum of 422,030

a

expected
stock.

the

common stock and $500,000

.

.h.,„a

•

forthcoming from depreciation and retained
In addition, the sale of $10,000,000 of preferred

March 2

•

JfW28!H°d'S«=;,"nnn0fat0ries'
,nc"
!t6%
°,shares of
'he

Co., New York.

Arco Electronics

war-

a
notification) 400 certificates of intercornnJ 4*,Ce ^750 per certificate. Proceeds—For
None
purposes* Address—Rye, N. Y. Under,

per

Burbank, Calif. Underwriter

shares, which are
to be used in connection with the recent acquisitions
by
the issuer of M. F. Hickey & Co. Inc. of New York
City
and Graham Brothers, Inc., of Los Angeles.

capital stock (par $1) being

ol record March

to

to

f5

Chestnut St.,

American Cement Co.

up

.C!ub',ncp

be

March 14 it

Freling-

off*

esi, series

Burinstallation

1960 is planned to supply a part of these
capital requirements. Office—Chicago, 111.

To

general

in

com-

Proceeds

s"ar<i* Proceeds—For general corporate
Merrill LvnoV. 1CaAngeles, Calif. Underwriter~
City.
>nch> Pierce, Fenner & Smith Inc., New York

PUl'P03es

building

Steel Co.

earnings.

~

pm*

construction of

improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and
$45,000,000.
It is
anticipated that a substantial proportion of this money

to holders of outstanding
hasis of one new share for

at 12:30

foot

square

the

and

Acme

T. Brod & Co., New

Air,ines,

AnrifL

on

certain

UAe^. for construction,
0^lce—6505 Wilshire

Working

33,600

for

March 25 the company's annual report stated that
capital

be

Price—.Tn u. purchuse of an additional 100,000 ^shares.
$350 R7« ,1,411 eu suPPhed by amendment.
Proceeds —
remaindPr

are

a

addi-

Underwriters—Arnold
& Co*> Inc., New York,

Inc- and street

'

(5/9-13)

used

new

March 10 it

&

stock in

notification) 66,666

?wark 12>

n'

Office—Chicago, 111.

Proceeds—$250,000 will be

all

al
?r
cents). Price—$3 per share.
huvin ??£ corporate purposes. Office—841
Malkan

Plan.

Prospective Offerings

Wefdotron Corp.
(4/29)

N. Y

Bergen, N. J. and
improvement. Office—
Underwriter—Michael G.

and

Probable bidders:

City Gas Co. *
•

New

Jefferson St.,

—For

ter¬

common stock, of which
being issued and sold by the company
75,000 shares are being sold by certain stockholders.

—Shields &

on Ma7 2> 1960> for
unsubscribed debento the public. Proceeds—

Underwriter—None.

the

Office—1121

°f record

Ck w.llL be offered
ChicS
TngiCTa2ltal, ^ffice ~~ 231 South
emcago, 111.

North

the

development in the modular container
field; and the balance will be added to working capital.

Thereafter the

•

in

with

bank, Calif., $250,000 for the purchase and
of new machinery and
equipment; $150,000 for further

offered

will

connection

Underwriter—To

by competitive bidding.

Halsey, Stuart & Co. Inc. and Salomon Bros. & Hutzler.
Bids—Expected to be received on May 4 up to 1:00
p.m.
(EDT).

sell

in

Manufacturing Co.

research

of

advanced

Avenue, New York.
Co., Inc., New York.

125,000 shares
and

of " 7%

exercise

be determined

April
(5/9)

March 28 filed 200,000
shares of

Corp., New York.

/? shares of common stock will be
? at $3,50 per share- The Offer

funds

under

Zero

being reserved

mon^tnJL (?etteiof

Underwriter—

ic Zenith Radio Corp.
April 8 filed 180,000 shares of common
stock, being the
shares presently issuable which
may be delivered on ex¬
ercise of: options which
have been or may be granted
under the company's
Employee Stock Purchase Plan 1.
Of this stock.
$12,450 shares remain available for op¬

con¬

of common stock. A
$1,000 debenture with
waiiants for the
purchase of 50 common shares at an
initial exercise
price of $3.50 per
share, will be offered
oi sale at
$1,000; a total of 75,000 shares

.

Office—231

filed

restore

Kletz &

sinking fund subordi¬
debentures series A due
April 30, 1975, with fiveo?fnnS01?mon
stock purchase warrants attached, and
2/o,UU0 shares

Ifnli

in

program,

Co., Chicago, 111. and New

Inc.

minal recently constructed
the balance for
expansion

nated

Fm

incurred

300,000 shares of class A stock (par 25
cents) of which 150,000 shares are to be offered for
pub¬
lic sale by the
issuing company and the balance by the
company's board
chairman.
Price
$5.50 per share.
Proceeds—$400,000 to restore working capital expended
to acquire American
Freight Forwarding Corp. and for
expansion of the freight forwarder
operation; $150,000

stock

three shares

i

expenditures.

&

Express/System,

March 25

debentures, duei June 1, 1975 and

Saxe, and First

4

loans

construction

Michigan Street, Milwaukee, Wis.

Yale

/

(par 10 cents). Price—$4 per share.
Proceeds—
To discharge
indebtedness, for development of additional
proprietary products for the semi-conductor
electronics
industry, and for general corporate
purposes. Office—
912 Westfield
Ave., Elizabeth, N. J. Underwriters—Rus¬

anri

construction

bank

—

stock

tnrP«

company's

York.

supplied by amendment.
Office—Dallas, Texas.
Underwriter—Harriman Ripley & Co.,
Inc., New York.
• WaSlson
Associates, Inc. (4/18)
Feb. 26 (letter of
notification) 75.000 shares of common

a

further

the

Underwriter—A. G. Becker

—To be

'•

of short-term

with

•

Inc.

common

trust certificates is scheduled for
sale.

Equity Se¬
Note—This

Wolverine Shoe &
Tanning Corp. (4/25-29)
March 28 filed
100,000 shares of common stock (par $5).
Price—To be supplied
by amendment.
Proceeds—For
additional working
capital.
Office
Rockford, Mich.

(par $2), to be offered
only in units, each consisting of $100 principal amount

i

is

—

vertible subordinated

c

for

West

'

(5/31-6/3)
April 5 filed $12,000,000 principal amount of 6%

tnr

$12,000,000

repay

(letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—To
set up a plant and equipment, to purchase machinery
and equipment, and for working capital. Office — c/o
William L. Berger, 209 Washington
St., Boston, Mass.
Underwriter—P. de Rensis & Co., Inc.,
Boston, Mass. Of¬
fering—Expected in April. * / -

sell &

underwriter

be.offered to holders of its
outstanding common stock
the basis of one share for
each 10 shares held. Price—
To be supplied
by amendment. Proceeds—To be used to

VuScatrcn Corp.

of debentures and

New

on

March 11

360,000 shares of

underwriter.

Co., 11 Broadway, New York City.

to

200,000 shares of class A common stock.
The offering will include 175,000 shares to be issued by
the company and 25,000 shares which are outstanding
and will be offered for the account of the holders thereof.
Price—$4 per share. Proceeds—$100,000 will be used to
purchase additional high speed automatic production
equipment; $150,000 for research and development of
new products; $75,000 to be reserved to cover the costs
of moving present facilities into new and enlarged quar¬
ters; and the balance for working capital. Office—35-01
Queens Blvd., Long Island City, N. Y. UnderwriterStanley Heller & Co., New York.. '
'
•

Wallace

Corp. (jointly).
* Chicago, Milwaukee, St. Paul & Pacific RR.
(5/4)
April 8 it was reported that
$4,650,000 of equipment

Wisconsin EEectric Power Co.
March 22 filed
561,005 shares of common stock (par $10)

Anril 12 filed

•

and Stone & Webster
Securities

Office—151 Odell Avenue,

purposes.

Y.

statement is to be amended.

Loeb & Co., New York.

Inc.

N.

as

curities

29

Sr-Kuhn,

$1).

Underwriter—Investment Brokers of
N. J.,
Inc., 844 Broad Street; Newark, N. J., has with¬

Chicago, 111.

Allyn & Co., Inc.,

C

(par

bidding. Probable bid¬

Halsey, Stuart & Co. Inc., Kidder, Peabody & Co.,
and White, Weld &
Co. (jointly); First Boston
Corp.,
Blair &
Co., Merrill Lynch, Pierce, Fenner & Smith Inc.

System, Inc.
notification) 86,403 shares of common
Price—$3 per share.
Proceeds—For

general corporate

mortgage bonds will be filed. Underwriter—

To be determined
by competitive
ders:

Wilier Color Television
Jan. 29 (letter of

n1

^

000 of first

43

Salomon Bros. & Hutzler, and Drexel & Co.

Electric & Gas Co.

3 it was reported

that around July about $10,000,-

Continued

on

page

44

44

The Commercial and Financial Chronicle

(1660)

Continued from

& Co.,

43

page

Securities & Co

(jointly); Eastman Dillon, Union

Meeting—Scheduled for July 5, 1960.

Expected

to

received

be

7.

July

on

In¬

Bids
Registration

formation

Lehman Brothers and Salomon Bros. & Hutzler

(jointly); Equitable Securities Corp.; First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Smith Inc.; Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received on July 19.

Scheduled for June 3.
Northern

Gulf Power Co.
it

Dec. 9

(7/7)

i

Feb.

.

announced that the company plans regis¬

was

the

16

000,000 of

shares of preferred stock (par $100).
Underwriter—To be determined by competitive bidding.
Probable bidders: Harriman Ripley & Co.; Eastman Dil¬
of

tration

50,000

Union Securities & Co., and Salomon Bros. &
(jointly); Equitable Securities Corp.; Kidder,
Peabody & Co., and White, Weld & Co. (jointly)^ In¬
formation Meeting—Scheduled for July 5, 1960. Bids
Expected to be received on July 7.
Registration —

new

construction

City.

to meet
such

occur

may

in

Office

end

Idaho

Power

30

it

a $45,000,000
with maturity in

1960,

improvements

direct

as

needed

customer

dialing
determined

Pacific

at

least

&

file
the

1990.

Proceeds—For

writer

sell

To

—

Probable

that

announced that the company

plans to issue

$20,000,000 of securities, the date and form of

$15,000,006
be

of

1st

capital

mortgage

later date.

etc. Under¬
by competitive bidding.
Stuart & Co. Inc.; Blyth &

Halsey,

Proceeds—To

curities

March

24

Electric
was

Power

total

about

of

new

authorized

plans

shares.

common

for

The

a

Co.

stockholders

finance

Feb.

company's
—Expected in June.
Iowa

construction

program.

Offering

1960

construction.

sion

^Louisville & Nashville RR. (4/21)
April 8 it was announced that the road will
open bids
April 28 for $7,980,000 of equipment trust certificates.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. &

Mac

Panel

March 23 it

Co.

11

it

was

reported

that

this

company

plans

approximately $30,000,000 of pipeline bonds

bond issue in

$4,000,000. Proceeds
equipment presently
ordered.

an
—

order

and

expected

to

some¬

to

Hutzler, Eastman

Dillon, Union Securities & Co., and Equitable Securities
Corp. (jointly); Blyth & Co., Inc.; The First Boston
Corp.

March 16 it

Insurance
was

expected to be sold sometime
this year. Underwriter—To be

register its first public

offering on or about April 15. The
75,000 common shares. Price—
Proceeds—For expansion.
Office—198

share.

per

of

Broadway, New York City. Underwriter—R.
& Co.,
Inc., 38 Broadway, New York City.
Nedick's Stores, Inc.
Nov. 12 it was
reported that the
company
plating the placing in registration of
common

stock.

About

is

F.

of

for the
company's account and

the

issue

will

(Jos.)

Dowd

contem¬

be

of

President, informed this
plans to sell an undetermined
principal amount
of bonds, the
timing of which will be subject to market
conditions. Proceeds—To
repay bank loans incurred for
current construction
program. Previous issues have been
placed privately.
paper of

mfnnnP°f:t?d fhat *!?is utility is Planning the
UnL^LS?;°00'0°0 °f tot mortgage bonds, due in 1990.
Prnh^rvf^T
T? ?etermined by competitive bidding.
Probable
bidders:
S5




& Co.

—

March

remaining 34% bal-I36 soJ?
P16 acc°unt of a selling stockholder.
Underwriter—Van Alstyne, Noel &
Co., New York.
fersey Power & Light Company (7/19)

Halsey, Stuart

was

reported that a secondary
offering might
be made this summer. Underwriters
Merrill Lynch
Pierce, Fenner & Smith Inc. and Harriman
Ripley & Co!
Inc., both of New York City.
South Carolina Electric
& Gas Co.
25, S. C. McMeekin,

sold

the

irnCJL

of

the

Schlitz & Co.

March 11 it

,/

17,000 shares

66%

in

tive bidding.
Probable
Inc.; Blyth & Co.; First Boston
Corp., Eastman Dillon,
Union Securities & Co.
and Merrill
Lynch, Pierce, Fen¬
ner & Smith
(jointly); Lehman Brothers and Salomon
Bros. & Hutzler
(jointly).

Co.

announced that the
company expects to

offering will consist

$25,000,000

of bonds is
third quarter of
determined by competi¬
bidders: Halsey, Stuart & Co.

-

be

Inc.; Kuhn, Loeb

r

Stanley

Office

,

r

Telephone; Co.
this

of

(8/9)
recommended

company

a

bidders:

Halsey, Stuart & Co. Inc.; Morgan
Bids—Expected to be received on or

Co.

&

Aug. 9.
18

,,

,s

■

■

it

that this

reported

was

|.

will file
about $1,000,000 of common stock. Underwriter—Purvis
& Co., Denver, Colo.
Registration—Imminent.
company

Tampa Electric Company
was stated in this company's prospectus of its
recent offering, that it contemplates some addi¬
tional permanent financing in 1960.
The exact nature
and amount of this financing has not been determined
but the company presently believes it will take the form
Feb. 2 it

most

of senior securities.

20

Valley Authority
that, pursuant to August,

announced

Congress

1959,

au¬

have $750,000,000

to

of rev¬
time, it plans its first
about $50,000,000, for

bonds outstanding at any one

enue

public

offering,

sometime
of

in

expected

the

fall.

be

to

Proceeds—To

finance

construc¬

new

generating capacity.
Probable bidders:
(managing), Salomon Bros. & Hutz¬
ler; Eastman Dillon, Union Securities & Co., and Lazard
Freres & Co. Power Financing Officer: G. O. Wessen-First Boston Corp.

Financial Advisor: Lehman Brothers.

auer.

it Trans World Airlines,
April 8 it

Inc.

announced that the company plans to offer
stockholders $100,000,000 of subordinated income

its

was

debentures with detachable

common stock purchase war¬
rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA

with

at

least

$190,000,000

$100,000,000.
proposed

Proceeds

private

presently being worked

—
Together with
placement
which
is

on

by

this company's

expansion

of

the

bankers,
jet fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman
Brothers, all of New York.
will

be

used

for

Union Electric

March
tive
of

16

it

company's

Co.

announced

was

by Dudley Sanford, Execu¬
company plans an offering
range of $30,000,000 to $35,-

Vice-President, that the

debt

securities

in

the

000,000. Proceeds—To meet construction
—315 No.

in
•

the

12th

latter

Utah

expenses. Office
Blvd., St. Louis, Mo. Offering—Expected

part of this year.

Power

&

Light Co.

April

12 it was reported that this company will ask
stockholders at the annual meeting on
May 16, to autho¬
rize 2,000,000 shares of
$25 par preferred stock, part of
which

will

struction

* San Diego Gas & Electric Co.
April 8 it was reported that

Office—Cincinnati, Ohio.

Mohawk

business, for purchase of addi¬

Gas & Electric
Corp.
it*was stated in the
company's annual report
that the company has filed an
application with the New
York State Public Service
Commission for the right
to issue
$10,000,000 of new preferred stock. Underwriter
—To be determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody
& Co., White Weld & Co.
and Shields & Co.
(jointly);
Kuhn, Loeb & Co.; Salomon Bros. &

aggregate amount not to exceed
To finance river
transportation

on

expan¬

company's

Rochester

it Midland Enterprises Inc.
April 8 it was stated in the
company's annual report
that it contemplates the issuance
on or before March
31,
a

the

March 1

time in June. Underwriter—To be
determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc. and Blyth & Co.

1961 of

of

(jointly).

Michigan Wisconsin Pipeline Co.

1

,

,

to

—Expected during the middle of next week. Underwrit¬
ers—Theodore Arrin & Co.,
Inc., 82 Beaver Street, New
York City .(handling the
books) and T. M. Kirsch & Co.

reported that negotiations are still pend¬
ing regarding the filing of an issue of common stock.
Office—High Point, N. C. Underwriter—Bache & Co.,
New York City and
Charlotte, N. C.

March

press.

equipment, and for general corporate purposes.
Office—134 Spring Street, New York
City. Registration

was

,

$100,000,000 debenture issue, : subject ; to approval by
regulatory authorities. Proceeds—To finance an expan¬

tion

The timing, type, and amount
financing has not been determined as the annual

tional

Hutzler.

Bell

directors

28

thorization from

Republic Graphics, Inc.
'
April 6 it was reported that the company plans the
reg¬
istration of 75,000 shares of common stock.
Price—To
be supplied
by amendment. Proceeds—For the

Office—

Southwestern

was

report went to

loans, to acquire the $10,-

*

was reported that $11,000,000 in new
financing
planned for the late Spring of this year, of an undeter¬
mined type.
Underwriters — A. C. Allyn & Co., and
Snow, Sweeney & Co., both of New York City.

Jan.

Co.

taken later in the year.
of this

Electric

not stated in the report.

was

is

Tennessee

Corp. (jointly).

Gas

Hampshire
April 4 it was stated in the company's annual report
that short-term borrowings will increase
progressively
during 1960 until further permanent financing is under¬

11

000,000 required to finance
Cedar Rapids, Iowa.

it

Electric &

Public Service Co. of New

\

issues

Co.

Lynch, Pierce, Fenner & Smith Inc.

Light & Power Co.
President Sutherland Dows stated that bonds
would be sold in order to
supplement money to be ob¬
tained from temporary bank
March

24

Service

&

reported that this company is planning
an
undetermined type of financing of approximately
$85,000,000, sometime this year. Underwriter—Merrill

rights on the basis of one new share
10 held at the time of issue. Proceeds—To
help

the

Co.

Public

have subscription
for each

$39 million and there will be further financing
$15 million of an as yet undetermined type.

about

Brothers and Eastman Dillon & Union Securities

will

or

Feb. 5 it

March

stated in the company's annual report it
1960 construction program will

and Stone & Webster Securities

$61,000,000

of the issue

—Birmingham, Ala.

System Meat Co.

Corp.; Dillon, Read & Co. and Johnston, Lemon
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman

Telephone Co.

directors

•

■

about

&

Corp.

Illinois Bell

Southern Natural Gas Co.

April 4 it was stated in the company's annual report that
the company expects to provide for the payment of
certain outstanding notes through the issuance of first
mortgage bonds and other debt securities. •, The timing

Probable

ton

Co., Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Welci & Co.
(jointly); Salomon Bros. & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly); Equitable Se¬

first

tion

a

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart &
Co., Inc.; First Bos¬

expenditures,

regis¬

30-year

determined by
Halsey, Stuart
& Co. Inc.; Merrill Lynch,.Pierce, Fenner & Smith
Inc.,
and Blyth & Co.; Inc. (jointly): Morgan Stanley &
Co.;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Eastman Dillon, Union Securities & Co.; Equitable Secu¬
rities Corp., and
Drexel & Co. (jointly); The First
Boston Corp.! Information Meeting—Scheduled for
May
31, 1960.
Bids—Expected to be received on June 2.
Registration—Scheduled for April 29.

sion and improvement program over the next five years.
Underwriter—To be determined by competitive bidding.

March 21 it

determined

bidders:

of

$20,000,000 of unsecured promissory notes, to
on or prior to
July 31, 1961. The notes will be
issued to finance part of the issuer's 1960-61 construc¬

Potomac

plans to
bonds due

$40,000,000

of

mature

expenditures, which are expected to
$61,000,000. Office—Portland, Ore.

company

SEC

bonds.
Underwriter— To be
competitive bidding. Probable bidders:
mortgage

retire

of

the

the

with

tration

March

Light Co.

which will be announced at

Building, Houston,

(6/2)

Southern Union Gas Co.

Power

was

Electric Generating Co.

Dec. 9 it was announced that this company plans

Co.

amount to

reported

and

sale'

1,

of

Jan. 29 it

Co.

was

issue

$12

(6/7)

is anticipated that their

March

sell

June

April. Proceeds—For expansion of business and
corporate purposes. Office — Norwalk, Conn.
Underwriter—Myron A. Lomasney & Co., New York.

Texas.

•

Telephone Co.

general

the

Electric

—

dated

probably be some type of debt security.

strong demand for service and to put into effect

service

Norwatk

Lighting & Power Co.
announced

i&kie

March 30 it was reported that the company plans to
an undetermined amount of common stock around

company's annual
report that it anticipates approximately $35 million in
new
money will be required in
1960 to support the
year's construction program, and to repay outstanding
bank loans. Studies to determine the nature and
timing
of the issuance of additional securities are
presently
under way. Last August's
offering of $25,000,000 of 4Ys %
first mortgage bonds was headed by Lehman
Brothers,
Eastman Dillon, Union Securities & Co. and Salomon

issue

Bell

in the next

York.

Hutzler.

Halsey

A

long distant calls. Underwriter—To be
competitive
bidding.
Probable
bidders:
Halsey,
Stuart & Co., Inc.; The First Boston
Corp.; Morgan
Stanley & Co.; Eastman Dillon, Union Securities & Co.
Bids—Expected to be opened on or about June 7.

Henderson Portion Pack, Inc.
March 16 it was reported that this company is consider¬
ing some financing. Underwriter—Burnham & Co., New

&

determined

by

few months. Office—Birmingham, Ala. Possible Under¬
writer—Sterne, A'gee & Leach, Birmingham, Ala.

Bros.

be

bidders:

of

issue of convertible de¬

an

being discussed and

was

Probable

mortgage
1960-1964

not more than 40 years. Proceeds—The funds are

'

,

Hayes Aircraft Corp.
12 it was reported that

Feb.

it

bidding.

Northwestern

Co. (managing) and Tucker, Anthony & R. L. Day, both

22

announced

March 24 directors authorized the sale of

Harvey Aluminum Co., Torrance, Calif.
It was reported late last year that this firm—the old
Harvey Machine Co. —is planning its initial public
financing for the Spring. Underwriters—Kuhn, Loeb &

March

was

Underwriter—To

program.

competitive

by

debenture

Houston

April 5 it

program.

to underwriters in January, 1960, an addi¬
$51,000,000 will be needed to complete its esti¬
mated $120,000,000 construction program for 1960. This
financing is dependent upon market condition, and will
tional

Southern

capital will be needed to meet its five-

Thursday, April 14, 1960

.

sold

bonds

(7/13)

Stuart & Co. Inc. group. Bids—To be received on July 13.

Scheduled for June 3.

is

Co.

that the company will sell $25,000,000 of first
bonds. Proceeds—To finance a portion of the

lon,

bentures

Gas

company's annual report stated that $120,-

construction

year

Hutzler

of New York

Illinois

.

.

be

sold

purposes.

competitively.

Proceeds^—For

Underwriter—To

be

con¬
determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Blyth & Co. and First Boston
Corp. (jointly);
White, Weld & Co.; Stone & Webster Securities Corp-

(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Eastman Dillon, Union Securities & Co. and Smith,
Barney & Co. (jointly); Lehman Bros.; Bear, Stearns &
Co.

Virginia Electric & Power Co.
Feb.

5

first

mortgage

writers

it

—

was

To

reported

bonds
be

that

will

(9/13)

approximately

be

offered

for

$25,000,000
Under¬

sale.

determined

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler;
White, Weld & Co.; Eastman Dillon,
Union Securities &
Co.; Stone & Webster Securities

Corp.

Bids—Expected

to

be

received

Washington Gas Light Co.
March
issue

30

and

it

was

reported

sell $12,000,000

that

on

Sept.

13.

(6/7)
the

company

plans tu

of refunding mortgage

bonds.

Underwriter—To be determined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co* Inc.t Kidder,
Peabody & Co.; Eastman Dillon, Union Securities & Co.;
Equitable
Securities
Corp. Information Meeting ■ 7-

Southern California Edison
Co.
March 15 it was stated in
the company's annual
report
Scheduled for June 3 in New York at 11 a. m. Bids
thai besides the $30,000,000 issue of
series L mortgage =sv—Expected to be received
up to 11:30 a. m. on June

Number 5942

191

Volume

.

.

The Commercial

.

and Financial Chronicle

(1661)

SECURITY SALESMAN'S
CORNER
BY JOHN DUTTON

at any time until

maturity, unless
previously redeemed, at an initial
price
of
$4.75
per
share prior to Feb.
1, 1965, subject
conversion

to

certain

adjustments.

The

de¬

bentures will be redeemable at
op¬
tional redemption
prices

Sept.

1,

1960

and

Will Be Good, But No Boom!

starting
ranging from

Purchasing

106V2 %

to par, and for the sink¬
ing fund at a redemption price of

Should Non-Member Firms Charge
An Extra Fee on Listed Orders?

is

par, plus accrued interest in each
case.1

agents'

factory volume of
good but not

broker for

to the execution of

an
order, you
investing public that nonno longer control the account.
For
firms must pay the same
this reason, many unlisted firms
commission as any other member
charge their customers the same
of the public when they execute

he

member

National security
This actually means

order

on

a

on

exchange.
that

they

loss

every

must do business at a
time such an order is

ransacted, unless they charge a
service fee or extra commission
and above

over

that charged them

member firm executing the

by the
order.

well recognized, however,
firms are ac¬

It is

non-member

that

rate

of

orders

commissions

listed

on

Dealer-Broker

Recommendations
Continued

Houston

from

Club

they would pay if the
2, Texas.
were
executed by a mem¬
as

order

ber firm.

as

and

to

be

is found to be keeping prices in
shortening forward commitments which, in turn,

pany

Good Thing

a

There is only one place where
good business practice should
draw the line and that is if

member firm has

a

non-

customer who

a

Houston

wishes to trade, or who tries to
abuse a good thing.
Trading ac¬

man,
nut

Also

Analysis

member's statistical services,
and market letters,

the

literature

analyses of clients holdings, and
sometimes reciprocal business in

securities,

unlisted

participa¬

or

selling groups of attrac¬
tive underwritings that ptherwise
tions in

be

not

might

available

the

to

non-member firm. It is not always
a

one-way

siderable

street. However, a con¬
volume of listed busi¬

is

placed by
year which,

ness

every

consummated at

a

non-members
on balance, is

tomers who do business
primarily
in listed securities, and who do
not

buy unlisted

the

account

net loss.

be

dis¬

This

problem is not readily
In
fact, there could be
considerable improvement in the

solved.

situation
could
the

if

be

someday

formula

a

arranged to compensate

non-member

listed

business.

happens (if it
an

Is this

also

couraged.

member

The Pros And The Cons

securities, then

should

firm

analysis

directly
But

ever

for

until

this

will) the

non-

be

must

of

its

guided by
clientele

own

and their

buying and selling hab¬
Unprofitable accounts should

its.

profitable?

Should a
competition not be handled by the non-mem¬
charge
its
customer's
the ber firm. An analysis of the ac¬
commissions as it is charged count, the activity, the extent of

non-member

and
same

m

'e

e

t

by the member firm? The dealers

business transacted in unlisted

who

might

curities, and the amount of listed

they are entitled to
profit on the business they

business transacted, should be the

charge

extra

fee

that

argue

make

an

a

transact

for

can

ents that

itable

commission,

an

service

extra

se¬

United Marine Inc.
Radio

Corporation

Appraisal—Halle

of

&

America—

Stieglitz,

52

a

an

excellent account

be obtained that will be prof¬
because the proper ap¬

fee,

their customers

are so well satis¬
fied with their service, and
advice,
that they have no

difficulty in ex¬
acting this extra, fully disclosed
charge. If their record of per¬
formance is such that the

advice

they give

to clients has made this
possible I would certainly agree
that they a re
fully entitled to

charge
and

any

commission that

I'ecord of performance
in

handling
accounts, but it is also my obser¬
vation that this
type of procedure
more

suitable
when
a
nonmember firm
specializes in the in¬

vestment type account that is
wore
tal

interested in safety of capi¬
a
regular income,

producing

man

trading

or

speculative

ac¬

counts. A non-member
firm that
handles general market
securities,

neW *ssues' ^ted
and unpreferreds, as

litd
well
i

commons and

tax exempts has

as

Pr°blem. It must
so must

a

differ-

compete and

encourage every type of

This then

brings

up

entirely different problem.

an

Meet Competition

vJfe

Certainly

that

follow.

investment portfolio

no

should exclude listed securities, or
unlisted securities. It matters not
where

and

ilsted and unlisted

that
secu-

u!' 1?US*: meet the

nJo. hsted
garvrSaiy *°

competition
firm- Thus it is also
ke competitive re-

LainS commissions charged cli-

2 s. Many

non-member firms do
clients to buy

iktoaWant fteir
firm

bona*

s£curities from some other
tlley have bought
i

uniS'
Jocal
unlisted
a

securities,

or
from

security is traded.

a

It

is




Manfacturing

Company—

Analysis-—Stanley Heller & Co.,
44 Wall Street, New York
5, N. Y.
Ryder

System Inc.

Analysis—
Co.,
120
Broadway, New York 5, N. Y.
L.

F.

—

Rothschild

&

Save -Mor
A.

N.

Drugs Inc.—Report—E.
Burka, Inc., 1101 Vermont Ave.,
W., Washington 5, D. C.

agree

with those

Bantam

Merchants

Co.

—

Memoran¬

Corp.

National

of

Bank

Iowa,
Build¬

ing, Cedar Rapids, Iowa.
Schield

economists

"plateau" period.
New

orders

7

Granbery, Marache & Co., 67 Wall
Street, New York 5, N. Y.
Southern Natural Gas Company—
Annual

report—Southern Natural
Company, Dept. FC, Watts
Building, Birmingham, Ala.
Gas

Associates, 32

Broadway, New York 4, N. Y.
Star
Market
Co. —Analysis—
Hemphill, Noyes & Co., 15 Broad
Street, New York 5, N. Y.

Corporation

Syntex

—

Review—

Cooley & Company, 100 Pearl St.,
Hartford 4, Conn. Also availableare
data
on
Giannini Controls,
Standard
Packaging,
Magnavox,
Controls

Company

of

America,

quality

Atomic.

of

Transitron

Highway Trailer

Also available

Allen
Noel

Co.

&

Co.

&

Van

and
offered

on

Electronic

Corp.—Re¬

port—Harris, Upham & Co., 120
Broadway, New York 5, N. Y.
are reports on Drug
Stocks, Insurance
Co. of North
America,
Lock Joint Pipe Co.,
Republic Steel, Union Bag Camp

Alstyne,
April 13

and 25%

Paper Corp. and F. W. Woolworth

Connecticut
ance

Co.

Highway

General

have

Co.

23%

this month.

(last month it

was

While

26% did report higher production,
13%) tell of lower output, and 51% report

no

change.

to

keep prices in check and to

Almost all materials

are

Life

Insur¬

lend to

agreed to

Trailer Co. $3,200,000
evidenced by joint and several
6y2% notes of the issuing com¬
pany
and Highway Trailer Co.,
maturing April 1, 1975. It is con¬
templated that the loan will be
made during April, 1960 and the
notes

The

;

will

be issued at that

1975

holder into
company

debentures

at

the

time.

will

be

of the
stock of the

option

common

Forms

at their principal amount

CAMILLUS,

Georgianni

of

'Ar \

n

more

aware

than

(Special to The Financial Chronicle)

.

Calif. —Tom Y.
Watanabe is now connected with
ANGELES,

Morgan &
&

He

Co.

of the

A

/>

high cost of carrying

Commodity Prices

.

offset by decreases on others. There are
many evidences that com¬
petition is keen; and, price competition is developing on a number
of items where it has not been available for years. On an over-all
basis, 70% of our members say there has been no price change in
the last 30 days; 23% say there has been a
slight upward movement,
and 7% say the trend is down.

Inventories
It is

quite clear that Purchasing Executives do not plan
any inventory build-up at the present time. Since the steel strike,
they have been able to replenish depleted items. The ready avail¬
ability of almost all materials, coupled with the belief that prices
now

will not rise much in the immediate period ahead, eliminates any
incentive for inventory accumulation.
As a result, 53% of our
members report no change in their inventory situation, while 29%
tell of minor

additions, and 18% of slight reductions.
Employment

Adjustments in the work force are reflected this month as
some of the zip disappears from the earlier enthusiasm for a firstquarter boom. While there are no reports of extensive layoffs, the

reporting reductions of people on their payrolls rose to
Also, only 14% indicated any increase in their
employment, (this compares with 24% last month). The majority,
64%, still say that their employment is being maintained at previ-.
ous levels. ,.The severity of the weather during March is blamed by
many for the employment decline. Some industries were immobil- 1
22%

this month.

ized for
in many

prolonged periods of time. Construction was at a standstill:
northern communities, necessitating layoffs of substantial

numbers of building trade workers.

Buying

was

J;

Policy

The trend toward shortening the time

chasing Executives

are

ahead for which Pur¬
willing to commit, continues. There is an

unmistakable desire to hold forward commitments to the minimum

to meet current production schedules. This is not at all
surprising, however, when balanced against the ready availability
of all the items needed. It is just good buying policy.
necessary

■Per Cent

Production
MRO

Reporting-

>

Hand-to-

30

60

90

6 Months to

Mouth

Days

Days

Days

1 Year

March—
Materials

Supplies

Capital Expenditures

8

36

28

22

26

44

23

5

2

9

8

14

23

46

25

7

6

February—
.

6

30

32

22

43

20

Capital Expenditures 11

5

13

Production Materials
MRO

Supplies

Specific Commodity
For the first time in many

,

13

2

21

50

Changes

months, buyers

are

readily finding

everything they need. There are a few reports of local shortages of

items, but in no instance are there enough to be statistically
significant. Of items reported up in price, only the chemicals had
more than token
support.
•
On the up side are: Hand tools, vegetable oils, rubber, phthalic
anhydride, phthalate plasticizers, calcium chloride, chlorine, lime,
rosin, dyestuffs, multiwall bags, kraft paper, and drills and taps.
On the down side are: Custom smelter copper, steel scrap, fuel
some

Douglas & Co.

Now With Morgan Co.

St.

ever

Again this month, there is little change in commodity prices.
general, where price changes have occurred, they have been rela¬
tively minor in nature; Increases on some specific items have been

N.
J. — Michael
is engaging in a se¬

■I

LOS

to

material in stock.

Douglas Co.

from offices at
211 Ivanhoe Ave. under the firm
name

Executives

,

Employment is down slightly from last month.
There is a general reluctance on the part of
Purchasing Execu¬
tives to add to inventory. The
special question this month sought
to determine the reasons for this reluctance. The
major factors, in
the order of their
importance, seem to be the ready availability of
all materials, the belief that
prices will not rise much in the months
ahead, and the fact that Purchasing Executives and other top man¬

business

curities

readily available, and this has served

lead Purchasing
shorten their forward commitment time.

the current Market Re¬
with
lists
of
suggested

and

or

strengthened

Co., and

$3,000,000 of this firm's 6^2% con¬ view
subordinated debentures, securities.
...v-.
.*
due Sept. 1, 1975, at 100% and ac¬ Wallace
&
Tiernan — Analysis—
crued interest from March 1, 1960.
Carreau & Company, 115 Broad¬
This offering was oversubscribed
way,
New York 6, N. Y. Also
and the books closed.
available is an analysis, of AlleNet proceeds from the sale of
gheny-Ludlum Steel Corp.
the
debentures,
together
with Wells
Gardner
&
Company—
about $3,200,000 to be borrowed
Report—Shearson, Hammill & Co.,
from insurance companies, will be
14 Wall Street, New York 5, N. Y.
used by the company to discharge
Also available is a list of Con¬
its obligations to Trailco
Corp.; struction
Co.
Securities
which
for machinery, equipment, inven¬
appear interesting and a review of
tory and start-up expenditures for the Chemical Industry.
a
proposed new plant, and for
working capital. Massachusetts
Insurance

"leveling"

a

?■4.''

slightly after last month's drop.
reporting improvement, 45% at the same level,
reporting declines. Production, on the other hand, slowed

somewhat

vertible

Life

predicting

number

that is paramount.

Debens. Offered

are

v :v'

In

Bantam—Memorandum—

tin—John R. Maher

who

tj'-vV

,

March shows 30%

agement are
Schield

dum— Securities

American Metal Climax and Baird

suitability, and the
the investment itself

good convertible

securities
them,
customer goes to another

Rheem

the value, the

Mutual

noi}-member firm that di-

hnnmleSTits
activities,
nandles
nf

account, the portfolio, and the

they

Over the years there are
many
firms that have had an excellent

is

the

recommendations

their

customers agree upon
and that also is
conscionable.

Broadway, New York 6, N. Y.

There is general agreement that business for the
immediate months
ahead will be good, but not
booming. In this respect, the members

Sovereign Resources, Inc.+-Bulle-

Very often

in proach was used from the incep¬
addition to the regular Exchange
tion.
This entails an analysis of
commissions.
They state that the investment requirements of
or

According to the Business Survey Committee, whose Chair¬
isj Chester F. Ogden, Vice-President of the Detroit Edison
Company, Detroit, Mich., production is good and new orders are

man

determining factor.

customers, and that
they openly disclose to their cli¬
they charge

Survey Com¬
mittee, reveals the paradoxical situation where "good business" is
producing a number of disappointments.

—

—

and complete use of

items as free

general reluctance to add to inventory.

The recent
monthly poll of purchasing agents, who comprise the
National Association of Purchasing
Agents Business

being booked in satisfactory volume, but they are not
meeting the
over-optimistic goals established by many companies and indus¬
Suplee, Yeattries. A number of the members attribute
Mosley Co., Inc., 1500 Wal¬
1960's slow start to the
Street, Philadelphia 2, Pa. I poor weather conditions that have prevailed over most of the
available is an analysis of
nation. Others feel that year-end objectives were set too
high.
—

Wall Street, New York 5, N. Y.
assistance, often be-; counts should be
encouraged to do Also
available
is
a
study
of
yond that given to the lay public, business
through a member firm. Combustion Engineering Inc.
when
a
profitable .non-member
They have the equipment to han¬
account is handled by a member dle this
Analysis —
business—the non-mem¬ Raytheon Company
firm.
This may include such ber
does not.
Ellis
&
In the case of cus¬ Green,
Anderson,
61

corded every

a

Quaker City Life Insurance Com¬

v.'

■

Abuse of

8

page

Building,

survey reports good production, satis¬
orders, and general agreement that business
high as last year's overoptimistic projections.

Ready availability of materials

.

check

anything, from advice

April

new

has led to

generally known among

not

k

n

45

Co., 634 South Spring
formerly with Boren

oil,

some paper

products, certain items of electrical equipment, and

cobalt oxide.

In short supply: Nothing.

Business Activity
IRON

operations (per cent capacity)

Indicated Steel

Equivalent to—
ingots and castings

Steel

(net tons)

statistical tabulations

latest week

month available.

or

or

month ended

Previous

Month

Year

Week

Ago

Ago

Week

INSTITUTE:

STEEL

AND

The following

week
Latest

AMERICAN

AMERICAN

Apr. 16

§79.9

•84.8

Apr. 16

§2,277,000

*2,417,000

that date,

on

91.5

93.8

2,607,000

2,657,000

Gasoline

stills—daily

to

runs

(bbls.)
(bbls.)

output

Kerosene

(bbls.)

average

output

Apr.
Apr.

1

7,150,510

1

117,916,000

7,945,000

7,152,810
7,922,000

Apr.

1

27,968,000

28,003,000

28,436,000

♦7,077.300

7,128.985

28,405,000

Apr.

1

2,414.000

2,630,000

2,371,000

2,184.000

1

13,091,000

12,846,000

11,992,000

13,784,000

Apr.

1

6,811,000

7,278,000

6,591,000

6,798,000

In pipe lines—
at
Apr.

1

225,595,000

225.987.000

219,428,000

213,615,000

Apr.

1

17,538,000

18,099,000

22,256,000

18,616,000

101,702,000

78,951,000

of that date:

are as

Latest

Previous

Month

Month

ASSOCIATION—

Year

|

9;954,000
9,642,400

sales (M therms)
gas sales (M therms)
& mixed gas sales

gas

INVENTORIES

BUSINESS

(M therms)

of

(Millions

311,600

9,380,900
9,124,000
256,900

$54,200

*$53,700

.

'

358^400

,

-

—

;

——

9,658 500

February

of

—i-,—

—

10,016 90o

COM¬

OF

dollars):

Manufacturing
Wholesale

Retail

DEPT.

—

SERIES—Month

NEW

MERCE

8,199,000

Apr.

oil output (bbls.)
Residual fuel oil output (bbls.)
fuel

Distillate

of quotations,

cases

the

either for the

are

month of January:

For

Total

(bbls. of

each)

gallons

in

Manufact'd

output—daily average

condensate

and

production and other figures for

cover

or,

GAS

AMERICAN

INSTITUTE:

PETROLEUM

oil

Crude

Thursday, April 14, I960

.

.

Dates shown in first column

Natural

42

.

(1662)

Indications of Current

Crude

Chronicle

The Commercial and Financial

46

1

.

.

$50 20n

•

12,700

12,700 /■:

n'90n

24,600

23,600

24^000

'

—

;•

Stocks at refineries, bulk terminals, in transit,
Finished

unfinished

and

Kerosene

gasoline (bbls.)

(bbls.) at
fuel oil (bbls.)

Distillate

Residual fuel oil (bbls.)

at

Apr.

at

;

Apr.

1

freight loaded (number of cars)
Apr.
Revenue freight received from connections (no. of cars)—Apr.

2

ASSOCIATION
Revenue

CIVIL

CONSTRUCTION

ENGINEERING

39,852,000

44,209,000

598,031

600,926

557,607

562,926

566,501

532,887

39,112,000

—

V

58,881,000

2

559,210

DEPARTMENT

Month

Public

and

State

——

—————

construction

:

$356,200,000

$383,700,000

$284,500,000

$469,800,000

175,700,000

179,900,000

158,600,000

206,500,000

7

180,500,000

203,800,000

125.900,000

263,300,000

^pr* 7

139,700,000

164,400.000

70,500,000

119,700,000

40,800,000

.39,400,000

55,400,000

143,600,000

—Apr.

—

—_—

municipal

Apr-

Federal

COAL

7

»prZ 7

Apr.

——

construction—

Private

OUTPUT

(U. S.

7

Apr.
APr-

(tons)

lignite

Pennsylvania anthracite (tons)

ELECTRIC

of

7,500,000

8,710.000

7,600,000

365,000

361,000

314,000

308,000

,

Number

customers—Month
1;_,
Feb.

'__

ultimate

of

AVERAGE

SYSTEM—1947-49

EDISON

FAILURES

100

(COMMERCIAL

steel

143

Apr.

9

13,494-,000

Apr.

7

333

131

98

117

INDUSTRIAL)

AND

—

DUN

■

13,542,000

14,271,000

12,604,000

at

customers

356

290

337

6.196c

6.196c

6.196c

$66.41

$66.41

$66.41

$66.41

$33.17

$33.17

$33.83

$36.50

Electrolytic

Lead

(East

Aluminum

Straits

32.600c

32.625c

31.625c

30.850c

31.200c

30.675c

at

Apr.

12.000c

12.000c

12.000c

11.000c

at

Apr.

11.800c

11.800c

11.800c

10.800c

at.

-Apr.

13.500c

13.500c

13.500c

11.500c

Apr.

13.000c

13.000c

13.000c

11.000c

Apr.

26.000C

Apr.

99.500c

—

at

—

(primary pig.

tin

MOODY'S

32.600c
30.975c

Louis)

St.

(New York)

BOND

V

Apr.

at

99.5% )

at—

at

54,656,480

56,304,591

$916,555,000

$885,725,000

56,572,061

56,304 591

29—_

57,572,061
'

26.000c

26.000c

24.700c

99.875c

100.375c

103.000c

85.75

84.05

U. S. Government Bonds

.Apr. 12

84.82

85.11

Average corporate

.Apr. 12

85.46

85.461

84.55

89.78

Aaa

.Apr. 12

89.51

89.51

88.95

92.93

Aa

.Apr. 12

87.99

87.99

86.91

91.77

.Apr. 12

84.94

84.81

84.04

90.20

Apr. 12

80.08

80.08

79.01

84.55

.Apr. 12

82.77

82.65

82.27

88.40

A

Baa

Railroad

Group

Utilities

Public

Industrials

Group.

.

.

Apr. 12

86.38

.Apr. 12

87.72

,

Group

....

,

86.38

84.81

87.59

86.65

U. S. Government Bonds

J

Average corporate

.Apr. 12

4.15

Apr. 12

4.75

.

—

A

Baa

//(%

,

.

4.45

.Apr. 12

Aaa
Aa

Public

Group

Utilities

Industrials

MOODY'S

Group.

.Apr. 12

4.56

.Apr. 12

4.79

.Apr. 12

5.18

.Apr. 12

4.96

Apr. 12

;

.Apr. 12

Group

COMMODITY

3.96

4.06

3.95

4.82

4.43

4.45
■Z

4.49

4.21

4.56

4.64

4.29

4.80

4.86

4.40

5.18

5.27

s'

*,

(per

prompt

(per

ttThree

Production

INDEX.

Apr. 12

.

Z/K
v/

'4.68

/ZZ«-vZ
.

4.58

4.97

5.00

4.68

4.80

4.59

4.66

381.5

381.4

1

.Apr.

354,126

Apr.

304,514

(tons)
—

Unfilled orders (tons) at end of period.

.

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

Zinc

FOR

ACCOUNT

OF

316,264

365.868

357,953

330,475

295,358

91

93

94

89

Apr.

467,129

418,526

488,510

498,653

110.85

110.85

110.40

111.52

8

of

1

1,957,480

2,523,250

.Mar. 18

356,530

424,270

Other

sales

.Mar. 18

1,631,610

2,101,810

.Mar. 18

1,988,140

2,526,080

345,930

474,760

Short

sales

Other

.Mar. 18

sales

sales

_

transactions

Total

initiated

on

2,545,270

New

York

Gold

(per

ounce,

Quicksilver

384,280

2,278,790
•

.(

3,210,480

523,890

650,670

Cadmium

(per

pound, small lots)

Aluminum, 99%

712,645

/:/

721,517

1,274,898

1,159,480

.Mar. 18

3,016,055

Short

sales

Mar. 18

501,990

sales

.Mar, 18

2,580,667

3,823,023

'

sales

Mar. 18

3,082,657

3,955,375

by dealers

(customers'

Customers'

short sales—

other sales

Dollar

Round-lot
Number
Short

(

616,875

829,890

834,050

3,788,958

4,182,140

4,618,848

5,016,190

1,535,401

$70,801,132

1,951,277
$86,691,148

2,140,433

2,223,820

$103,896,342

$108,293,867

.Mar, 18

1,236,448

.Mar. 18
.Mar. 18
.Mar. 18

15,931

22,048

1,220,517

$55,539,649

1,537,057
$72,378,735

$75,901,995

$99,449,928

Mar. 18

317,650

409,190

358,770

567,350

1,559,105

1,564,049

2,029,208

21,3331
1,542,716

2,023,042

Other- sales

Mar. 18

317,650

409,190

358,770

Mar. 18

567,350

646,860

790,210

911,410

758,190

shares—

TOTAL ROUND-LOT

round-lot

8hort

sales

Other

sales

OF MEMBERS

LABOR

—

(1947-49

=

—

U.

Exports

:

UNITED

All

commodities other than farm

and

foods

674,720




$1.75000

24.700c
74.000c

$2.25

$2.25

"

'

;

220

"

//'■
^

330

"

*

*

686,439
576,365
109,804

'

270

*

-

-

,

Tires

(Number

of)

(Number

9,370,874

22,971,526

22,566,918

—1,278,105

V 1,292,258

3,501,888

of)—

.

Net
S.

4,093,059

of

—As

Total
at

of

DEBT

face

33,042,000

37,994,000

30,354,000

33,378,000

.DIRECT

AND

.

rate

amount

:-r,•

$1,280,200
1,118,100

,

.

.

-

$282,153,039
4,438,286

$286,964,796

$290,718,804

5,189,02 9

5,311,484

$281,775,767'

$285,407,320
3.378%

$277,714,753

$295,000,000

$288,000,000

3 336%

_

that

.Mar. 18

12,535,460

865,140
15,577,520

.Mar, 18

13,210,180

16,442,660

gross

1,110.940
16,633,110
17,744,050

2.801%

LIMITATION

omitted):

may

be

outstanding

nnn

$295,000,000

Total

22,749,420

120.2

120.1

119.8

119.7

Apr.

91.4

91.0

89.2

90,9

Balance

under

107.0

107.1

106.8

107.1

Apr.

95.6

96.2

95.1

Apr,

128.9

100,4

128.8

128.7

128.2

runs. SBased on new annual capacity of 148 570 970 tons
Jan. 1, 1959 basis of 147,633,670 tens. tNumber of orders not reported since introduction of
St

286,826,484

290,583,412

282,034,279

138,311

135,392

118,760

$286,964,796

$290,718,804

$282,153,033

debt

obligations

not

owned

by

the

gross

public debt and guaranteed

obligations

Apr.

Ah^from

public

950,580

Deduct—Other

on delivered basis at centers *here

1

Treasury
21,798,840

not

/

1

public

?

obli-

420,743

outstanding
amount of
obligations issuable
above
authority

$286,555,990

$290,309,132

$281,732,296

8,444,010

4,690,867

6,267.703

debt

total

face

1957

totals based

on

_no

reports from companies

95% of secondary tin consumption in
flpomestlc five tons or more but less than
from

East

St.

t+Average of daily

session

,

409,671

freight

included.

debt

408,805

to

*^ev'sfc' figure. tEstimated
of

where

ing

outstanding
subject

limitation—

Grand

end

.

:://: Z/Z-Zv.

,

'r

——

DEBT

.

$1,560,300
1,137,000

$1,583,000

time

any

7,364,072

30,058,000

36,448,000

Zv
~
;■;ZZ •>,.•

balance.

(000's

4,316,393
4,093,794

33,634,000
36,000,000

33,145,000

;

31

31

5,390,897
3,899,369

8,923,924

1,287,000

March

370,381
376,069
965,575

February

—

STATUTORY

(

IMPORTS

AND

CENSUS—Month

annual

,

-

debt

GOVT.

301,605

4,061,272

...

(pounds)

funds

Computed
U.

334,207

1,033,324

'

Inner-

—„______u—__■

GROSS

,

...

1,041,590

(pounds)

March

1,117,230
1,307,937

3,584,153

305,383 >

(Camelback)—

OF

1,314,809

3,376,343

,307,364

9,001,961

STATES

of

'

1,400,931

,•

(Number

EXPORTS

'

7,438,707
8,965,868
19,457,867

( 9,010,575

'

of)—

.

(pounds)

''

f

10,029,687 /

s: 8,903,922

.___

,

Guaranteed

^In<;ludes 1.049,000 barrels of foreign crude

Mnnlht J' \ 60 »s against
we^haif wn^a^ound
$Prime WeStern Zinc Sold

'

—

General

ran

as

$2.25

785,130
788,367
655,133
660,109
129,777,/' -,127,928

-GUARANTEED—(000's omitted):
As

■

.Mar. 18

Apr.

Meats

$1.45000

(Z

'

—

—:

gations

products
Processed foods

February:

Tires

STATES

Imports

S. DEPT. OF

commodities.

74.000c :

——

Production

100):

Farm

74.000c

•

!

Inventory

Commodity Group—
All

•

;

Rubber

Total

1

WHOLESALE PRICES, NEW SERIES

$1.45000

26.800c

<

——

Shipments

(SHARES):

.

•$76,727

>

35,25tic

Outstanding—

sales—

Total sales

29.500c

$82,000
$1.40000

26.000c.'
35.250c

.

Production

Tread

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS

FOR ACCOUNT

32.590c
29.000c

29.000c.
129.500c

.

Inventory

6,166

Mar. 18

Total

Bus

BUREAU

sales

Round-lot purchases by dealers— Number of

$35,000

32.590c

26.000c
35.250c
-

:

(000's omitted):

.

/

•

$224,636

MANU¬

_i/_'

Inventory
Passenger, Motorcycle, Truck and Bus
Tubes (Number of)—
Shipments

purchases)—t

sales by dealers—
of shares—Total sales-

of

Tractor Implement Tires

COMMISSION

value

-

103.119c

'

$35000

$212,211

28.100c

1-1

——

and

UNITED

.Mar. 18
.Mar. 18

Customers'

'

ASSOCIATION

___—

Inventory

4,972,290

STOCK

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

101.000c

.

-

79.281d

$2.81271

28,100c

Of March:

Shipments———

1,030,530

3,166,531
3,783,406

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

shares

91.351c

-

$1.50000

,

FROM

Inventory
Truck

,

Other

of

Production

Production

Mar. 18

value

trucks—
coaches—

Shipments

sales

sales

motor

61,800

round-lot transactions for account of members—

Dollar

91.375c

79.500d
$2.80329'

$1.75000

.

motor

MANUFACTURING

91.375c

$1.50000

cars—

of

11.000c

$1.75000

■

vehicles—:

of

646,230

199,700

Number

ASSN.—Month

of

passenger

Number

584,430

959,780

Odd-lot

r

—

SALES

Number
RUBBER

680,880

953,688

EXCHANGE

of

556,480

886,215

SECURITIES

number

Number

124,400

321,210

—

w____

S.—AUTOMOBILE

%

aver-

;

FACTORY

U.

FACTURERS'

Total

70,600

122,005

EXCHANGE

^

weighted

pound)

IN

389,050

825,013

Y.

ingot

.//

PLANTS

£73.931

$82,000
lots$1.40000

**Nickel

(per

£88.920

29.000c.

grade primary^ pig

VEHICLE

-£75.122

29.500c

"Magnesium ingot (per pound)—
Bismuth

11.500c

£88.857

I:

'

32.590c

pound)

(per

grade

13.000c

13.500c

$35,000

(per pound)

age

459,650

675,671
797,676

N.

grade

99%-

50,600

94,860

ON

97%

Aluminum,

13.000c

$214,000

_r_

ton

£71.209

13.500c

$2.80586

_

ounce)

11.209c

£69.513

-

pounds)———

delivered

11.412c

.ff,

£73.863
£73.774

100.125c

76

pound,

373,000

626,657

SPECIALISTS

:

:

boxed—'

(per

r

79.26ld

(per

322,400

.Mar. 18

AND

* 1

K

.

refined

Mar. 18

.Mar. 18

DEALERS

of

£76.266

£88.899

ton)

(per pound) bulk Laredo
(per pound) boxed Laredo

.Mar. 18

.Mar. 18

LOT

„

price)-

S,

11.800c

12.000c
>" 11.800c

' £90.160

*_

Production

sales

Total

'£247.606

ounce•

Cadmium

the floor—

purchases.

£273.774

,

(per long

Platinum,

Cobalt,

2,637,930

sales

Total

U.

York,

New

Antimony

572,550
<

2,663,070

Other

Total

30.271c

£248.513

(per pound)

(check)-

flask

31.031c

-

31.994c

£263.869

£75.367

long ton)

(per

32.976c

30.745c

Straits—

(per

HAntimony,

3,291,090

Short

Total

27,500

£253.266
£237.739
12.000c

Louis_—

St.

delivered

(per

Exchange

.Mar. 18

.

purchases.

York

Tin,

the floor—

purchases

Total
Other

initiated off

Louis

Passenger and. Motorcycle
Shipments
;_

.Mar. 18

Total

$50,200

-(/.

Sterling Exchange—

New

Sterling

specialists in stocks in which registered—

Other transactions

'

^

sales

8ales

ton).,

;

three months

INC.—Month

purchases.

Total

and

Silver,

MEM¬

Short

Total

long

Silver, London (per ounce)

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

:

pound)
(per pound)-

pound)—East

(per

ttZinc, London,

390.5

Apr.

Apr.

TRANSACTIONS

300,817

(

*29,700

32.613c

__

ton)

(per

(per

§§Zinc, prime Western,

i

AVERAGE—100

ROUND-LOT

long

prompt (per long ton)—
•
ttThree months, London (per long ton)___

i 4.53

'

21,600

*$53,700

•

30,300

pound)

London
York

East St.

Common,

4.45

371.2

'

$28,600

-

22,800

i;.\ //;/

/■

ttLondon,

4.82

4.32

*$30,900

/.,

22,700

QUOTATIONS)—

V.;

MOTOR

(tons).

Percentage of activity

months,

Common, New

"
.

J.

(per pound)___:

refinery

Z'/Antimony

4.75

"

$54,200

(//:Z-

Exports

Lead—

91.34

NATIONAL PAPERBOARD ASSOCIATION:
Orders received

M.

&
•

•ftLondon,

.

Railroad

(E.

Domestic refinery

89.51

I

i.

\

$31,500
; %

————_

PRICES

Silver

MOODY'S BOND YIELD DAILY AVERAGES:

j?

5
,

——

ttZinc, London, prompt
.

/ -

•„

dollars):

Copper—

AVERAGES:

DAILY

PRICES

.

125

57,572,061

SALES

AND

of

1

March:

1

QUOTATIONS):

Apr.

York)

(delivered)

Zinc

J.

at

refinery

Louis)

(St.

M.

&

refinery

(New

Lead

tZinc

(E.

133
,

$942,478,000

—

Total

copper—

Domestic

Export

ton)

*107

of

—

Sales

Scrap steel

METAL PRICES

(millions

Nondurables

METAL

6.196C

lb.)
Pig iron (per gross ton)
(per

(per gross

February

140

118

Inventories—

&

PRICES:

COMPOSITE

AGE

Finished

2

of

Durables

(in 000 kwh.)

BRADSTREET, INC
IRON

Apr.

INSTITUTE:

ELECTRIC

Electric output

=

Month

142

consumers—

MANUFACTURERS'INVENTORIES

INDEX—FEDERAL RESERVE

SALES

STORE

35,229,000
1,508,000

1,579,000

•/Zz./.Z

(000's omitted)

ultimate

January

7,126,000
'

,>

ultimate

to

January

from

„

^

DEPARTMENT

33,910,000

RE¬

INSTITUTE—

sales

Kilowatt-hour
Month

,

Average^!00-

seasonal variation
Without seasonal adjustment—
EDISON

-

March:'

of

Revenue

2
2

_

for

Adjusted

BUREAU OF MINES):

coal and

Bituminous

SYSTEM— 1947-4!)

SERVE

ENGINEERING

tons)

(net

SALES—FEDERAL

STORE

$86000

_-.

,

(net tons)

lignite

anthracite

:
38.200,000
1,648,000'

*

,,

,

and

coal

*$90,000

MINES)—Month

OF

.

Pennsylvania

NEWS-RECORD:

Total U. S. construction.

(BUREAU

March:.

Bituminous

590,592

v

$91,500

_________

——

OUTPUT

of

RAILROADS:

AMERICAN

OF

78.012,000

75,119,000

1

Total

COAL

of

London

Metal

Louis
mean

exceeds

and

Exchange.

bid

0.5c.
and

•♦F.o.b.
ask

accounting for
total stocks,
§§Deliv< 1 ■

1957 and 97% of
carload lot boxed.
Fort

U. S. D'py
ton at moi
Z

Colburne,

quotations per long
•

Number 5942

191

Volume

The Commercial and Financial

. v .

the

tate of trade and industry
are stni

hese

easured'8

easux----

.
-ives

baker-Packard
Xnd.,

con-

are

noStF f nickup in orders
-ident0}8 P ting rate will
probably

decline,

tn

lnUe70's

into

"Ward's"

leveling off.
positive side this week,

pfore

ie

April 9

Age" notes cancelladeferments of steel

Iron
and

added

quoted

total

that

manufacturing for the

the

n,

Bend,

Dearborn,
uearoorn,

4,500 production workers.

capacity)

of

(percent

at
ai

would

truck

,

about

have

g

owxiry

from last week and would be

units
produce^
umts produced

al^

ji

rt

OA

rBinW
dunng

v.:'j

•

...

the
1

■.

"mJe'bfg users

of steel have their
The reporting service said U. S.
at the point where truck output this month is expected
and any surge of - to

want them,

hov

ney

...;n

decline about 15%

to

linitc

110,200

1 ori
n/r
i
business" will mean an up- units . from
from 129,529
in
March
There are two fewer
working days
surge in new orders.
available in April than in March.
Release of pipeline projects by
.

nr»_

an

wionn

_

Combined car and truck prohas resulted in
shipments for duction this year (2,579,792) is
inenipe, with more major projects
running 23% ahead of 1959 (2,due to break
in the next few 103,135).
months. As a result, linepipe is
Carloadings for Week Ended
he strongest tubular product.
April 2, Up 1.3% Above
After the
end of May, steel
Corresponding 1959 Week
usiness will reflect closely the
^ate of business
done by steel
Loading of revenue freight for
the
week
ended
jsers. For this reason, barometers
April 2,
1960,
ike auto sales,
appliance sales, totaled 598,031 cars, the Associaare
tion
of
American Railroads
nd construction
indicators
an¬
nounced. This was an increase of
etting.the closest scrutiny.
Big' concern remains the one- 7,439 cars or 1.3% above the cor¬

government

the

and

orders

1CVV
new

.

.

,

stocks
of
unsold
utomobiles.
Auto
production
chedules for April are erratic and
ary from week to week.
Two
eeks ago, automakers were proramming' 600,000 units for the
lonth. Today, they are planning
15,000. This compares with 579,)0 for April of 1(159.

lillion-plus

continues

weakness

Price

n

the last two weeks range

8£

to

high

as

650

as

Week's
On

The

Steel

Output

American

Iron

announced

,

cwt.

above

Based

1959

the

the
and

above

Steel

and

that

were

barely,

an

cars

week of

April 2

five-tenths

or

of

of

the

price

foodstuffs

raw

It

use.

is

sum

of

and

meat

in

not

a

cost-of-

show the general trend

of food

;

There was a slight decline in the
general commodity price level this
week, reflecting lower prices on

wheat,

oats,

tin.

and

slight

hogs,

These

gains

on

steers,

wool,

decreases

offset

lard,

corn,

and

butter. The Daily Wholesale Com¬

earlier

with

and

275.45

279.59

sponding date

a

on

year

a

week

the

corre¬

Trading
in
wheat
slackened
during the week and receipts were
light; wheat prices were down
fractionally from a week earlier.
Sales of wheat to flour mills were
down

noticeably.

moved
were

Volume in rye
somewhat and prices

up

steady.

The

buying of corn was sus¬
at a high level, despite a
decline
in
receipts; this helped
prices rise slightly. Oats trading
tained

showed little change from a week

the

loadings

op-

of

rating rate of the steel companies
vill average *141.7% of steel caacity for the week, beginning
pril 11, equivalent to 2,277,000

corresponding week of
6,284 cars or 132.8%

from

1958

rice

for

week.

the

Cumulative

first

12

weeks

1960 totaled

123490 for
38,248 cars or

of

crease

in¬

an

45.0%

corresponding period of

*959, and 68,602 cars or 125.7%
above the corresponding period in

Holland and Indonesia. Both

domestic

and

moved

prices

export

buying1

significantly

up

of

and

steady. Active in the
market were India, Peru,

were

export

Mexico.

and

close

sugar

the

was

week

the

to

prior period. Coffee
volume
was
steady and prices
1958. There were 51 Class I U. S. were
unchanged. There was an
railroad systems j^iginating this
compare with the actual levels of' lyPe traffic in the current week appreciable rise in cocoa prices,
*150.5% and 2,417,000 in the week compared with 47fone year ago reflecting a moderate increase in
sales.
beginning April 4.
'
and 39 in the corresponding week
tons

of

ingot

steel

and

castings
(based on average weekly production of 1947-49)J; These
figures

36

was heavier than a
in all industry and trade
groups except retailing.

Geographically, the decline dur¬
the

week

principally
Middle
91

concentrated

was

in

three

regions:

the

Atlantic

from

States, • down;'to
the Pacific States,

112;

down to 66 from

80; and the West
Central, off to 14 from 20.
Contrasting increases prevailed in

South

regions. East

North

Central

and West North Central casualties
rose

most

noticeably, to 66 and
respectively, while the South

15

Atlantic toll edged to 41 from 40,
and

the

from

New

England toll

14. Trends from

1959

levels

were

to

16

comparable

mixed;

five

regions had heavier failures while
four

reported dips from last

Easter

Shopping
Trade

Warmer
weather

than

Easter

week.

weeks

As

is

usual

in

Volume

on

apparel

than

house¬

on

floor coverings was up mod¬
erately from last year. Scattered
reports indicate that sales of new

advanced

earlier and

cantly from
The

total

were

up

from

a

signifi¬

wear

week

a

was

up

and

earlier

appreciably higher than a
shoppers were most in¬

terested

in

suits

The

call

dise

noticeably

for

and

dress shirts.

children's

merchan¬

exceeded

that

of

both the prior week and last
year.

Although furniture sales slack¬
ened from the prior
was

week, volume
moderately from last year,
principal gains in bedroom
dining room sets, and up¬

up

with

sets,

holstered chairs.

Except for slight
gains in television sets, purchases
of

major

close to

a

Food

appliances

sales

were

dairy

moderate

products,

Lenten

was

in

Grocers

canned

and

rise

this

.

re-orders

apparel

in

fish,

marked

a

re¬

increases

specialties,.

There

slightly

up

from the prior week.

ported

remained

year ago.

for

women's

both

over

the

prior week and a year ago, with
principal gains in cotton dresses,
jewelry, lingerie, and sportswear.
Last-minute

re-orders

merchandise
stocks

were

were

for

Easter

sluggish,

as

adequate in most

re¬

volume

of

tail trade in the week ended

re¬

April

6

was 8 to 12% higher than a
year
agb,ro according "Ta*"spot estimates

in purchases of

occurred

infants'

Wholesalers

wear.

men's apparel reported
in

creases

sales

of

of

slight in¬

lightweight

suits, sportswear and beachwear.
Bookings in synthetic cloths and
other man-made

fibers

expanded

significantly this week and stocks
in some

markets

reduced.

a year ago.

dollar

sports¬

year ago;

and

cars

and

tail stores. A marked year-to-year

the most notice¬
able year-to-year gains occurred
in women's Spring
clothing. How¬
ever, volume in furniture, linens,

passenger

coats,

men's

the

goods, and

week

in

immediately
preceding
shoppers concentrated increase

Easter,

47

little less noticeable.

a

sharply from
was

(1663)

suits,

Summer

shop¬
this week, and
noticeably
higher
ago, the 1959 post-

was

year

Easter

hold

Retail

Spring-like

more

of

were

week

Volume

and

sales
wear

year.

many areas

a

more

Boosts

stimulated

volume

in

noticeably

were

Moderate gains occurred

trading

in

print

cloths

and

sateens, but volume in other cot¬

ton gray goods remained sluggish.
by Dun & Bradstreet, Interest in carpet wool lagged, but
Regional
estimates
varied the call for woolens and worsteds

collected
Inc.

from

by

the

the

Middle

comparable

Atlantic

North

Central

+6

to

and

South

+3

Central

England

Coast

and

+1

to

+7;

to

+5;

West

South

apparel

stores

steady.

was

most

Supplies of burlap in

markets

were

reduced

sizable rise in orders.
land- dyers
a

New

by

in

and finishers reported

fractional

increase

in

incoming

•' *■ :+■: ■+. '■<■; +

orders.

MEETING

NOTICE

millinery,
fashion

Spring dresses,
accessories; gains in

DlVIDEND

ALUS-CHALMERS

NOTICES™

—-MFG. CO.

,

Actual output for last week
be-;
ginnmg April 4, 1960 was equal*

to 84.8%

Jan.

1,

of the

i960

148,570,970

utilization

annual

net

percentage for

~st based

this

y.9%.

•

April 2 Week 4.2% Ahead

of

Of

is

week

tion) was *162.3% and
production
2,607,000 tons. A year
tual
a

ago the

ac-

weekly production was placed
,657,000 tons, or *165.4%.

~77TLV

•

(

e"Third

of

Total

Cwwct. ears,;
flrivr.
drive fn™

'

j

hegan
fttcgdn

an
an

carriers

historic
Historic

Electric

?

27

.1"dustry Production

and 26
W

Preceding week

•

6.2%

m

•ward's

entire March.

Autnmnt™

counted
m 32 960
32,960
assfl^uii.
assemhiipo

t??10Qti'
U

nrnH

»

•

f-mg the Week

car

in~
iii^o°PPed to 133',47'830 last week.

fm

as

The

amount

distributed
and

of

corn-

freight

general

power

stitute.

7.1%

Above

Week

of

electric

the

by

energy

electric

light

industry for the week

at 13,494,000,000 kwh., ac-

kwh.

Output

below

that

week's total of
but

showed

a

48,000,000
of the previous
was

13,542,000,000 kwh.
gain of 890,000,000

kwh., or 7.1% above that of the
comparable 1959 week.
Wholesale

Food

Price

Index

for

the

current

The

^




to be held

DIVIDEND

NOTICE IS HEREBY GIVEN, that
the Annual Meeting of stockholders of

ALLIS-CHALMERS

declared this

day

COMMON STOCK DIVIDEND NO. 103

This is

a

regular quarterly

dividend of

com¬

25*

Wholesale
wiiuiwaxc

Food
r uuu

declined

to

333

in

the week

PER

1.

To elect

2.

To consider and transact any other
business that may properly come
before the meeting or any adjourn¬

April 7 from the two-year
high of 356 in the preceding week,
reported Dun & Bradstreet, Inc.
came

Price

close

In-

the

to

337

occurring
the com¬

parable week of 1958. Some 13%
businesses

more

1939

pre-war

failed

than

when the

toll

in

May 16,1960

of business April

H

Milton C.

P§

Board of Directors;

ment thereof.

....

i

20,1960
Baidridge

at this annual

meeting

or any

adjourn¬

ment thereof.

By order of the Board of Directors

April 7,1960

11

a

The Board of Directors has fixed
March 17, 1900, as the record date for
the determination of the common stock¬
holders entitled to notice of and to vote

Secretary

casualties

last year and the 342 in

on

p| to holders of record at close

ended

MANUFAC¬

TURING
COMPANY, a Delaware
corporation
(hereinafter
called
the
"Company"), will be held at the general
offices of the Company, 1205 South 70th
Street, West Allis, Wisconsin, on Wed¬
nesday, May 4, 1960, at 11:00 A.M.
(Central Daylight Time), for the fol¬
lowing purposes, or any thereof:

SHARE

Payable

Commercial and industrial fail¬
ures

May 4,1960

-

The Board of Directors has

season

ARCHIE

THE COLUMBIA s

D.

DENNIS,
Secretary

Dated: March 17, 1960

Hi GAS SYSTEM, INC.

was

295.

All of the week's decrease took

place

among

bilities

of

failures

$5,000

or

with

more

lia¬

which

dipped to 292 from 318 in the pre¬
vious

the

week

of

272

Small

casualties,

liabilities
to
not

41

but

this

under

from

38

reach the
week

exceeded

remained

size

a

TRANSMISSION

COMPANY

above

year

HOUSTON, TEXAS

ago.

those involving
$5,000, edged up

last
65

of

$100,000

week

but

did

reported in the
1959. Liabilities

for

33

of

the

failing concerns as against 44 in
dex, compiled by Dun & Bradthe preceding week.
street, Ipc., edged up fractionally
Retailing casualties fell to 155
Imn
udjustmpntc
week tor jn the latest week from a week
perial
piant at DpL^ Wa™earlier, but was down moderately from 172, construction to 51 from
hort work
bori?' Mich.-: from a year ago< The index stood 62, while the toll among whole¬
weeks were in
force at $5.94 on April 5, up 0.3% from salers dipped to 33 from 38. In
«

■

Business Failures Down

similar

Edges Up From Prior Week
-

Notice of

ANNUAL MEETING OF STOCKHOLDERS

B QUARTERLY

a
week earlier and 58,000 in
the similar period last season. Ex¬

Despite this downturn,

cordtng t0 the Edison Electric In¬

said
comPany in the in¬

duction cirtaCnmpSnfmf f.0rm ?f
£ Chevrolet
^ W.eek;
Jnsas City was
irill In P13^ „at

week

150,000 bales, compared with 309,-

ended Saturday, April 9, was es-

evp®rting service

du% s

the

ex¬

of 34 metropolitan Moderately for Week Ended Apr. 7

Output
1959

f1car timated

S•

omoact
S' compact

.

d

r>4

^ declinp
adjustment m^f
an inventory
April-Jnni ?' / desi§ned to keep
year-ago levg?
0n close to the

Pearly

survey

throughout the country,

week

from

for

REGULAR

a

000

These findings are based on the

than 400 truck terminals of

to 29

cotton

States

0 8 %> more than the volume 1,971,000 bales during the
parable period last year.
in the corresponding week of 1959.

mon

caPturinS one-third
2^ nf^aike! with a iumP

320 Units

the

4.2%

'.

;

the

of

United

to

or

Industry

in

ports

ports

weekly

Output

dustry

in

was

search Department. The report re.^ars RePresent Almost fleets tonnage handled at more

°rvPaSJ

n

2.

earlier.

aver- areas conducted by the ATA Re*

r

Of the

tonnage

April

week

close

Year> the American Truckthrough April 5 came to about
*ng Associations, Inc:, announced,
Truck tonnage was less than 1%, 4,811,000 bales, compared with

-

.

»«klL™lTuo„%^bia9slL°9

truck

ended

Milwaukee, Wisconsin

the New York Cotton

remained

ended last Tuesday came to about

of

operating rate
weekly produc-

on 1947-49

?

Week

ahead of that of the previous week

A month
ago the

abased

Previous

Intercity

fore-

capacity,

on

Exchange

Estimated

week's

that

Prices

;„vjL

.

Intercity Truck Tonnage for

the

capacity

tons.

on

of

1958,

The
DIVIDEND

regular quarterly dividend of 35c

share has been declared

on

per

the Common

Stock, payable June 14, 1960, to stock¬
NO. 51

holders of record

a

Eng¬

+4.

Best-sellers
and

Pacific

+9; Mountain

Central 0 to

were

levels

percentages:
+16
to
+20;
+13 to +17; East

+10; West North Central

+5 to
New

1959

following
Atlantic

South

East

Although trading in
quiet, prices finished

to

rose

Mortality

ping in

)

ago.

service

year ago

modity Price Index, compiled by
Dun & Bradstreet,
Inc., stood at
274.97 (1930-32 — 100) on
April 11,
compared

failures
from

27.

four

Wholesale Commodity Price Index
Down Slightly in Latest Week

manufacturing

com¬

ing

pound

per

contrast,

moved up to 58 from 57 and

mercial

beef,

earlier, and offerings were lim¬
ited; prices fell fractionally from
the
preceding
week.
Soybean
There were 11,017 cars
reported marketings were light and prices
loaded with one or more revenue dipped moderately.
Purchases of flour at wholesale
highway trailers (piggyback) in
week ended March
sluggish
this
week
and
26, 1960 were
(Which
were
included
in
that prices were unchanged from the
week's over-all total). This was prior period; export trading was
an increase of
3,115 cars or 39.4% slow, but inquiries were received

79.9% of Capacity

Institute

was

$6.16.

Day Holiday in the coal fields.

he cuts
were
mainly through
^adjustments in quantity extras.
his

and

below the preceding week due
to observance of the
Eight-Hour-

from

per

1959

1 %

,

cuts m the southwest

2,895

were

in

....

enter price

Loadings in the

Service

warehouses.

steel

ome

responding week in

increase of 81,784 cars or 15.8%
above the corresponding week in
1958.
'

.

.

but

ago

prices at the wholesale level.

week

i'"".1..

31

to

19%

ended Jan. 30.

ased

inventories

$5.92,

year

living index. Its chief function is

9%

.

aireaay 1i
aneaciy

ft an

lower

general

week ended

decline

oireadv placed have leveled;
leveled below the 1960 record of 32,600
i0I1S. alreadTp^aced'have

rdeis

the

Slte at Newark, Del., was closed cheese, cocoa, and raisins.
all week
The Index represents the
strike by
all
week following a
a

con-

operating
win conopera
g ratebably

•

at

Ford
^iu

week's

below

Higher in price this week were
flour, wheat, bellies, lard, milk,
coffee, cottonseed oil, eggs, steers,
hogs,
and
lambs.
Commodities

"Ward's" said. The Chrysler Corp.

soon,

a

eel
he stee!
:he
p

and

South

prior

3.6%

at two B-O-P plants, Chrysler at
Los Angeles and St. Louis, Stude-

page 5
disappointing when
city
while

tinned from

^

Continue

Chronicle

on

May 6, 1960.

J. E. IVINS,

Secretary

48

Financial Chronicle

-The Commercial and

(1664))

,,

;

Thursday, April 14, 1960

April 27,

WASHINGTON AND YOU

England

ment

Bankers

(Boston, Mass)
Group of

In'L

Association

April 28-29, I960

BEHIND-THE-SCENES INTERPRETATIONS

i

1960

New

St. Louis

FROM THE NATION'S CAPITAL

Spring

(St.

meets

Louis,

Mo)

Luncheon at

Mi?

Municipal Dealers Gronn

Party:

souri Athletic

Club, cocktail Dart
banquet at Park Plaza
Ilotlf
April 28; Field Day at Glen
Echo
Country Club, April 29.
and

WASHINGTON,

ing

C.

D.

great American

President of

a

The

—

of elect¬

game

the

United

States every four years has al¬

ready taken

thick political

on a

atmosphere in our country.
It

promises to be

of the

one

most

sue"

affected

outcome

the

in

.

Wisconsin, but the big and un¬
answered question is: Wa§ it 3
sizable one?

,.

Kennedy chalked up
all of his margin in the three
Congressional districts that are
heavily Catholic.
Two of these
three
districts
are
normally
strong Republican districts. Ob¬

for

servers

Even

before

the

Wisconsin

Presidential preference primary,
it

was conceded by many lead¬
ing politicians and
observers
through cold political eyes that

Sen.
of

John

Fitzgerald

Massachusetts

runner

the

among
candidates.

Kennedy
the

was

IfAvVAA&S'' 7

Certainly

Wisconsin pri¬

the

strengthened

mary

that

belief.

State

because

nedy

was

ator

Hubert

Ken¬

running against Sen¬

Minnesota

H.

in

Humphrey

Mr.

backyard,

own

Senator

of

Humphrey's

bigger

even

an

test may come in West Virginia,

the little Switzerland of Ameri¬
Even

ca.

ginia

by

delegates

the

the

though the West Vir¬

vote

the

of

would

bound

not

are

results

be

primary,

highly

sig¬

nificant.

Senator Hum¬
political
philosophy is certain to be re¬
of

center

pugnant to many conservatives

regardless
views.

their

of

religious

*

-

The "Religious Issue" and Wis¬
consin Results
There

apparently

no

was

question that the "religious is-

Stock Market

on

estant areas.

"Milwaukee

The

Wisconsin's
in

"Two

two-

thirds Catholic and heavily Re¬

EOGAR AUCCN,J«.

Brown

County

publican.

nedy,

alone

of

story

the

is

The

might

primary.

almost

vote

Humphrey, 5,186
and Nixon, 9,099. Here is a Re¬
publican crossover of enormous
with

"I've

"Outgagamie

quite

County,

Catholic but

as

13,310;

within the

even more

crats

Humphrey,
10,264.

big

also

released

figures showing that
of

predominantly

Indiana

:

nedy, and Vice-President Rich¬
M. Nixon, who appears as¬
of being the Republican
nominee, will come on May 3

ning in the Indiana Presidential
primary.

Senator

Humphrey and

Governor

Freeman

maintain

Kennedy

was

to make

tops in Wisconsin

Indiana,

of

crossover

voters.

that

the

lean

Republican

he

the

to

West

Lyndon

B.

is

Vir¬

Johnson

total

16

states

Columbia

preferential

1960.

In

of

the

Democratic

traders and pro¬
fessionals
purchase
"buy"
and
"sell"
options (call and put) because they know
these
options can make big profits for
them

This
how
on

also

and

"paper"

can

profits
book

on

protect

the

too can
minimum investment.

how

you

It

shows

1,331

This

help

And

and

I
I

■

can

book

you

mail

costs

make

you

a

can

this

you only
fortune.

examine

93.90.

it

Free.

It can

Fill

chance
cratic

in

16, N. Y.

I

Please

Under-

i

I

I

I

I

not convinced that it

many times over, I
nothing.

Otherwise

can

pay for itself

I

will

pay

you

!

pay

I

$3 00

I

may return it and

SLfmmt REcharw wlthin 10

da» M

Name..;...

j

Address

|

| □ Save
j

Filer's

examination.

City

•

Herbert

Zone.... State......

postage. Check here if

enclose check

or

he

getting

nomination.

This

Demois

A.

Rocke¬
D.
of

Rockefeller

would

not

cism

Today, there

_

Vice

-

Senator

are

pros

convinced

Kennedy

proven vote

Question

the

it

"issue"

as

handicap

picture, it
going to be an
long
as
Senator

is

race.

if

John

Hill

He is the

can

you

prefer to

money order for 43.00. Then

we pay postage. Same moneyback guarantee, j




ing

would

nominate

Senators,

two

assum¬

is nominated for Presi¬
dent to run on the same ticket.
one

Reports out of West Virginia
estimate the Catholic
pop¬
ulation at about 5

or

6%.

Club.

Vedra, Fla.)
Investment

Bankers Association meeting.

in

9,

1960 (Des Moines, Iowa)
Investment Bankers Silver

Iowa

a

battle

moves

1600

into

to

determine

who

the White House

at

Pennsylvania Avenue next

June

10, 1960 (Philadelphia, Pa.)
Investment Traders Association of

Philadelphia

ou,ting

summer

column

is

intended

to

re¬

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

June

15-16,
Minn.)

1960

(Minneapolis,

Twin City Bond Club annual out¬

ing at White Bear Yacht Club.
June 16, 1960 (Minneapolis, Minn.)
Twin City Bond Club 39th annual

picnic and outing at White Bear
Yacht Club (preceded by a cock¬
tail party June 15th at the Nicol¬

COMING

let Hotel.

EVENTS

June

16-19,

1960

IN INVESTMENT FIELD

June

21,

1960

Michigan)

April

10-15,

1960

(Murray

Bay,

Que., Canada)
Investment Dealers' Association of
Canada annual meeting. • -

(Philadelphia,

Security

(Detroit

&

AA; AAvAAA.

Traders

Association

The.

percentage of Catholics is higher

of

Detroit
of

Investment

School

of

Banking,

Finance

&

and. Michigan
Summer
outing at Western Golf & Country
Club.

Commerce, University of Pennsyl¬
vania.

June 25-28, 1960

April

19-20, 1960 (Philadelphia,
Pennsylvania.)
Pennsylvania Group of

Eastern

Investment

Bankers

(Santa

Barbara, Calif.)
California

Group

Investment

of

Bankers Association meeting.

Association

meeting.

Attention Brokers and Dealers:

TRADING MARKETS

If

Botany Industries
Indian Head Mills
Official Films

A

Southeastern Pub. Serv.

CMk Marks

&

P.o. Inc.

Our New York telephone

number it

CAnal 6-3840

FOREIGN SECURITIES
SPECIALISTS
20 BROAD STREET

TEL: HANOVER 2-0050

at

Overbrook Country Club, Radnor
Township, Pa.

January.
[This

Club.

the

Presidential nomination, but it is
highly improbable that the con¬
States

Northwood

June 2-5, 1960 (Ponte
Southern
Group of

Fitz¬

win

It
is
conceivable
that he
might be in line for the Vice-

vention

tion

konda

in

private conversations. Of course,
if he loses West
Virginia, he is
completely out of the presidential picture.

United

1960 (Dallas, Texas)
Security Dealers Associa¬
annual spring
party at the

Anniversary field day at the Wa*

Presidential

appears

Kennedy is in the
-

a

Capitol

May 28,
Dallas

ning against Richard M. Nixon

Wharton

in

Tam¬

Catholi¬

lot of old

a

Association

West Virginia, he will be run¬

A Big

or

that

Kennedy

Pa.)
Institute

asset

are

on

Bankers

Meeting.

June

gerald

getters in their respective states.

an

and

rum,

issues.

were

political

belief is generally
accepted
both men could have the

gion be

when

1928

vows

accept the
Presidential

being asked
again, can reli¬

Republican

the

in

Hall,

feeling among some of his col¬
leagues in the Senate in their

standing Put and Call Options for 10
days'

me

of

,

to

With the question
over
and over

of
the
showing
Humphrey, a Con¬
gregationalism makes in West
Virginia, he has little or no

■

| If

the

trying

on

Regardless

.

send

in

votes

is

Nelson

difficulty. Both

In¬

that Senator

coupon today.

To your favorite bookseller, or
CROWN Publishers, Dept.
A-7,
419 Park Avenue South, New
York

free

in Chicago's
Amphitheater

There

Republican

Vice-Presidential nomination of
their respective parties
without

convention.

also

I
I

that

sell

options on your own
stock to increase
income, where and how
to buy and sell puts and
calls, how to use
them
to
make
capital gains instead of
short-term profits, how to use
options to
protect profits on your stocks, etc.
...

opening

"Happy
Warrior"
York, went down to

Here) in .the Nation's Capital

the

same states and
the District will cast 634 of the

how they do it and
make maximum profits

(Rolling Rock, Pa.)
Pennsylvania Group of

Investment

A1

Governor

the

New

has likewise maintained that he
would
not
accept the No. 2
spot on the ticket. But they
could change their minds.

July 25, these

shows

you

tion

ternational

unrealized
they own.

stocks

conven¬

conven¬

that

to

else

draft movement in favor

a

Governor

con¬

In the Republican

trouble.

of the

Governor

that

in

tion.

in

be

segment

or

the world's richest men.

total of 698

a

supposed

Nixon,

feller, the grandson of John
Rockefeller, Sr., who was one

of

of the 1,521 votes in the

is

Mr.

organization

hold¬

primaries

District will cast

Thousands of successful

which

toward

would
a

start

the

and

are

run¬

favorable showing in

a

Republican
nomination.

of

of

will be

men

The Vice-President will have

L.

Mr.

because

addition

Orville

Smith,

ard

sachusetts Democrat.
Both

since

defeat

when the two

Minnesota

President

many

sured

Protestant

Catholic

-

A test between Senator Ken-

some

the

of

faith to seek the nomination for

Kennedy Test in

vs.

communities went for the Mas¬

ing

the subject.

to

member

from
Nixon

opening in the Memo¬
rial Sports Arena at Los Angeles
on July 11, these states and the

on

Republicans, ac¬
curbstone apprais¬

als.

number

a

first

This

Republican

Kennedy's campaign

lieutenants

of the Demo¬

ranks

than the

cording

crossover, probably spurred by
religious sentiment.1"

Senator

(Baltimore, Md.)

Baltimore Security Traders Asso¬
ciation annual spring

chains?"

the

May 20, 1960

not

similar story:

was a

another \

was

A

by HERBERT FILER

all

uses

outing at
Maryland Country Club.

vention

A..;, the #1 authority

who

Western

1

District

Options

wondered

evi¬
dence of religious motivation.

17 Primaries

PUT and CAU

often

strong

Texas, in the Oregon primary
May 20, along with Oregon's
own
Senator Wayne Morse.

Understanding

dinner

May 19 at Hillwood
Country Club; outing May 20 at
Bellemeade Country Club.
May 20, 1960

18,477;

proportions,

and

Ken¬

was:

Bankers

Nashville

e%.

counties

the

Investment

May 19-20, 1960 (Nashville,
Tenn.)
Security Traders Asso¬
ciation
Spring > Party; cocktails

the Republican crossover in the

tell

the

As¬

and

election, made this observation:

tor

book

Gov

sociation annual Field
Day.

newspaper,

religious

the

campaign now under¬
Senator Kennedy will be
pitted against Senator Stuart
Symington of Missouri; Sena¬

a put or call
option, risk limited
to the cost of the option
(maybe a few
hundred dollars), you can make unlimited
profits (possibly thousands of dollars In
90 days) is explained in this
clear, simple

of

Biltmore.

May 17-18, 1960 (Omaha,
Neb.)
Nebraska Investment Bankers

Journal,"

largest

discussing

of

nors

ginia

How with

at Hotel Atlanta

May

way,

Transaction

(Atlanta, Ga)
Stock
Exchange

of

Association.

In

Limited Risk-Unlimited Profit

of

ihl

at

districts, he was hurt because of
religion in strongly Prot¬

4,491, and Nixon,

Nevertheless,

1960

meeting of Board

ernors

his

Kennedy,

phrey's left

dinner

11-14, 1960 (White Sulphur
Springs, W. Va.)
Meeting of the Board of Gover¬

j

Kennedy is Catholic. Sen¬
ator Humphrey is Protestant.

Firms

politics maintain that while
New England Senator car¬
ried the three heavily Catholic

is

ator

May 9-10,

and students of Wiscon¬

Republican,

The Mountain State primary
May 10.
The population is
predominantly Protestant. Sen¬

annual

Association

sin

While all eyes were on the Badg¬
er

York

Waldorf Astoria.

the

front

Democratic

New

Senator

interesting election years
in a long time.
We have been
electing our chief magistrate
136 years.

April 29, 1960 (New York
City)
Security Traders Association

,

•

NEW YORK 5, N. Y.

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

10 Post Office Square,
Telephone

AA 7

HUbbard 2-1990

•*

Boston 9, Mass.

jVA-

w