Full text of Commercial and Financial Chronicle : April 23, 1959, Vol. 189, No. 5840

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OVER-THE-COUNTER MARKET FEATURED IN THIS
ISSUE
APR

211959

isas*

Reg. U. s. Pat. Office

Volume

189

Number

5840

New York 7„ N. Y.,

Thursday, April 23, 1959

Price

Cents

Copy

EDITORIAL

■

**•

•

The recession of 1957 is
any

who
if

even

are now

•

number

been called back to their
jobs.
ness

•

There

■

few if

are

By HON. ROBERT

disposed to question that fact—

substantial

over.

have

men

not

People and busi¬

buying freely. Borrowing to buy con¬
goods is on the rise again. Production in

sumer

areas

the field of

much

wise to

good

labor

deficit-financing has little
budget-balancing is futile.

the reckless about the
way

they

This

are

translating their enthusiasm into buying orders
the stock market. Various "causes" of the

can
an

begrudge ho

better times have

does

;

v";

•'

can

emotion

should

Nation.

share. It

hand

ever

wise.'*

us,

for

than

greater

them

who

few dozen holders.

need

wisdom

Continued

securities

New

York

afforded

are

known that

by Mr. Anderson
City, April 20, 1959.

before

the

tens, but in blocks of, frequently, many millions
in a single transaction. This vast and vital market

preserve

page

Associated

95% of all Government bonds

over

trade Over-the-Counter and not in
twos, fives or

"governments" is made

in brokers'

offices all

by investors sitting
country but by

the

Press,

Continued

investors in corporate
complete picture of issues now registered with the SEC and poten¬
our "Securities in Registration"
Section, starting on page 62.

UNDERWRITERS

Public

Stale and Mhuh*

pal

BROKERS

and

STATE

DEALERS

MUNICIPAL

and

Lester, Ryons
623 So. Hope

Securities
TELWf'H*NE:

"THE FIRST NATIONAL CITY BANK

Burnham

BOND DEPARTMENT

and

Company

MCMBCAS NEW YORK ANO AMERICAN

ST.,> Y.

Distributor

•

Dl 4-1400

Inquiries Invited

Teletype: NY 1-708

TCLCTYRC NY I-2M2

ESTABLISHED

New York

New York Stock

American

'■

United

Block

Exchange

Inquiries

THE

Chase Manhattan

Southern

Stock

CANADIAN

Exchange

BROAD

STREET

NEW YORK 4, N. Y.

DIRECT

;

WIRES

BRIDGEPORT

•

PERTH AMBOY

goodbody
US BROADWAY
NEW YORK

I
-

Price

DEPARTMENT

bank

;

Debentures

July

102%

For

1977/72

1,
United

States

yield

Dollars

4.65%

California
►

CHICAGO

Member of Amerlcab Stock Exch.

DEPARTMENT

IBattk of America
*

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

MUNICIPAL BOND

Grporatioti
Associate

Municipals'

Dmmoii Securities

CO.

NORTH LA SAILE ST
-

;

MONTREAL AND TORONTO

$200,000 -5 *

4%%
Due

Payable

Invited

MEMBERS NEW YORK STOCK EXCHANGE
-

DEPARTMENT

METROPOLITAN TORONTO

Principal Properties

Teletype NY 1-2270

DALLAS

Securities

THE MUNICIPALITY OF

BOND

Correspondent—Pershing & Co.

To Dealers, Banks and Brokers

1832

Members

Exchange

goathuwtf COMPANY

Net Active Markets Maintained

;

I, I

T. L.Watson &Co.

FIRST

Bonds and Notes1

Diego, Santa Ana, Santa Monica
California

„

San

OF NEW YORK
Bond Dept.

Housing Agency

Pasadena, Pomona, Redlands, Riverside,

STOCK EXCHANGES

U BROAD STREET, NEW YORK 5, N.Y.
CAM.O COIURNHAM

Offices in Claremont, Corona del Mar,
Encino, Glendale, Hollywood. Long Beack,

SECURITIES

bank

•

Members Pacific Coast

FOREIGN

page

Associate Member American Stock Exchange

UTILITY

PUBLIC

chemical
CORISP EXCHANGE

Dealer

17,

Members New York Stock Exchange

BONDS

RAILROAD

Underwriter-

Co.

California

INDUSTRIAL

HAnover 2-3700

30 BROAD

Street, Los Angeles

and

Housings

State. Municipal

Ifc SI Government,
Public

not

over

REGISTRATION—Underwriters, dealers and
a

tial undertakings in

symphony of se¬
light of the economic trends of the
past few months. First, bonds. It is by now well
curities in the

address

issues

Let's examine this
panoramic

500

before the birth of Christ, an¬
other great leader of the Greek
peo¬

Continued

page

Almost

those alone who have courage to defend it."
We are dedicated to security that we
may

SECURITIES NOW IN

DEALERS

men.

ple urged his fellow citizens to "remember that prosperity can be only
for the free, and that freedom is the sure
possession of

♦An

new

Counter Market.-

years

;

It is here that all

regardless of size or quality j are first
quoted, and given market appraisal, even though
a few
weeks later, they
may move onto some
stock exchange. The
original or early testing, and
proving, grounds of all securities is the Over-the-

are

liefs

on
the New York Stock Ex¬

security take place as soon
ownership has spread from a few to a

stock

never

diately preceded the downturn in the middle of
1957, arid to determine as nearly as we can how
good a use we made of the recession. Supposedly,
a recession or
depression tends to create condi¬
tions which bring it to an end and start business
off again on a surer
footing. Such adversity is
supposed to tone up the muscles of business and
to eliminate the
fatty tissues which over-long

centering

the Mother of all markets. It is here that
the first
trades in a corporate

fact the fruition of the lives and be¬

of securities,

differs in fundamentals from that which imme¬

Robert B. Andorsoe

change and just how high is up as regards the
D-J average, far too
many people have been los¬
ing sight of the fact that the Over-the-Counter
Market, where some 50,000 issues are traded, is

history of every nation is in

and; ideas of

much investor attention

share-market motion

now.

The

examine

Surely the world has

been

diversity and breadth of the

•

time, by paying cash dividends variously

over

With

■

Demosthenes once said: "The time
for extracting a lesson from
history

however, that this would be a
good time to inquire precisely where we stand,
to ask ourselves
just, how the current situation
seem

•

from five to 175 consecutive
years.

bright econpmic future; it
This country cannot have

faith

our

his feeling of elation that

one

come—an

selves,

with you in historic perspective and
as a basis for future real
growth in

;

have

;

enduring bright economic future with inflation. This
is a principal tenet of my belief. It

re¬

which has come quicker and more vigor¬
ously than had been generally expected, are now
being cited, particularly by those who ' would
covery,

claim credit for it.

country

have it without inflation.

Over-the-Counter Market, and citation of some of tike
often unheralded investment
opportunities found there; i •
plus a tabulation of equities which have proven them¬

•

period.

"a little inflation is good,"
do with inflation, and

that various authorities have felt it

warn

into recovery

In spelling out what is re¬
quired from government, business, labor and
individuals,
so
we
may obtain national security, economic
growth,
retain our way of life and
yet successfully walk the
narrow path between
recessionary and inflationary pres¬
sures, Mr. Anderson flatly controverts the
arguments:

relations, and a very sub¬
stantial degree of
uncertainty exists in interna¬
tional affairs. But optimism is the rule
again—

Enterprise Economist
.

A seasonal review of the

practice Federal debt-retirement during prosperous
times; and opposes prolongation of anti-recession meas¬

deal of talk about this year and next
being record
breakers in the volume of production attained and
in what is known as
prosperity. Trouble lies ahead
in

By DR. IRA U. COBLEIGH

must

ures

high and rising. There is

-Progressive and Panoramic

ANDERSON*

Treasurer Anderson is gratified about
economy's recoverypace and prospects for budgetary
surplus; insists we

are

almost all

Secretary of the Treasury

NATION AT

Tele. NY 1-702-3

300

Hv'v'of ASSOCIATION

Mcntjomery St., San Francisco.Calif.

;

The Commercial and

Financial Chronicle... Thursday, April 23, 1959

Brokers, Dealers

For Banks,

The Security I

only

This Week's

Like Best

week, a different group of experts
In the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

Specialists for over

>r.n

30 years

Bank Stocks
Consecutive Quarterly

Our 108th

Leading Banks

United States

to 82,300 sub-shares. The
sole capitalization as of Dec. 31,
1958, was down to 1,299,289 shares
and some 2,000 shares have been

and American Stock Exchange
Texas Pacific Land Trust

3,1957, I first presented
It was
selling at $7.00. On May 1,

then

1958, I renewed my
tion, though

New York Hanseatic

120 Broadway,

New York 5

Teletype NY 1-40

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Cities

Wires to Principal

Private

value

stock

well be

move.

Members

Security Dealers Ass'n

Render

brokerage service

Securities

all Unlisted

for Banks and

Dealers

Exchange Place, New

Harry

Miller

York 5

Phone: WHitehall 3-7830

Teletype No. NY 1-2762

and

Texas

states

of con¬

conced¬
that land values must rise and

tinuing inflation without

WALL

•9

STREET

NEW YORK 5, N. X.

ing

Way

substantially.

rise

Tax

laws

dollar

adopted

were

was

Income

Federal

the

when

1913,

back

the

and

dollar, by agreement
Department, a

with the Treasury
value

—

Refined

—

Liquid

Export«—Imports—Futures

DIgby 4-2727

put on the TPL land

acre. At present prices
stock, giving due consid¬
eration to royalty values and cash
items held, you are buying that
acreage for about $7.00 per acre.
In my opinion, an average price
of $30 or $40 would be more real¬
istic and, if a real land boom ma¬
terializes, a price of $100 is very
possible. Present trust land hold¬
ings total about 1% acres per

for

Raw

was

$4.81

SUGAR

per

the

share.

To
my

For Banks,

Brokers and Dealers

this company,
occurred
during

letter
following

last

the

since

developments

review

A net increase in the number of

alties

...

A.D.R.

ELLIOTT

AUTOMATION

LTD.

oil and gas roy¬

from

1957

$457,395

which

particularly

was

since I had at¬

it.

The

Trust

here

sold

the

1,000

over

W. Portland

Company for $293 per
plus a royalty which could
produce a substantial annual in¬
acre

This

come.

Stock Exchange

Liberty St., New York 5

Tel.: BE 3-8880

Teletype NY 1-4686

Private Wire System to Canada

sale

should

hasten

developments here, and the Trust
holds an additional 70,222 acres
in that county. There have been
no

York

sales in the El Paso area, but I

informed by local real

authorities

that

values

estate

are

con¬

tinuing to rise there. If you will
recall, TPL holds some 12,000
acres

city

which

are

Paso

adjacent

directly
the path of the city's growth.

http://fraser.stlouisfed.org/
\
Federal Reserve Bank of St. Louis
S

Call

write

considerably

will

For current information

Yamaichi

else the alternative is.
likely to be a small
specialty
company active, in just one phase
of missile-space age work that is
vulnerable to cut-backs or con¬
diluted,

and, of course, the

specter of product obsolescence
always present.
* 1 r..
;

Securities Company
of New
.

York, Inc.

Affiliate of

Yamaichi Securities Co., Ltd.

Tokyo, Japan

;

the

from

benefit

111 Broadway,

...];,
Bankers

Brokers & Investment

N.Y, 9 COrtlandtT-5889

but

custom cables
and cable assemblies (as differen¬
tiated from cabling; systems and
related engineering services) are

efforts
these

areas,;

is not so

pany

Irving

the Com¬

confined

and

the

vtV

~ V.

•

Accounts

to i, be
changes

Straus

>' >

Receivable^

•

used in current missile programs,

'
seriously,,

such

(Non-Notification)
Inventories

•

Machinery

•

Installment Sales

•

the Air Force's Atlas, Snark,

Bomarc

and

•

Army's

the

Titan,

Factoring

and

.in em¬
Hawk, Sergeant and Jupiter, and
phasis in the various programs, or< the
Navy's Polaris, Regulus and
product obsolescence. ,
y
Vanguard.' Among the principal
Pacific Automation's business is customers of the Company in con¬
best
described
as
the
design,, nection with these programs dur¬
manufacture,
installation
and ing the fiscal year ended Aug. 31,
maintenance of complete cabling 1958
were
Convair Division, of
systems (including the installation General
Dynamics
Corporation,
and
maintenance
of associated The
Martin
Company,
North
by

threatened

[Talk to Talcott ^

Company's

The

total

the

FINANCING or
•

;

/''

(Notification

Non-Notification)

...

instrumentation) used in the com¬
plex installations for the testing
and launching of missiles. Before
Pacific Automation Products, Inc.

General Electric Company,
;

and

the cause of many

delays and
in com¬

link"; failures

NEW

tion

nas

arrived at

ORegon

CHICAGO

NEW YORK 3, NY*
7-3000

DETROIT •

•

BOSTON

pre-eminence

which finds 90%~of
available
business
being

the field

the

200 firms at this

over

YORK

221 FOURTH AVE.,

time.
While competition has been keen
during the three-year life of the
Company, today Pacific Automa¬

well

mis¬
automation systems. It

"weakest

Boeing

Airplane Company and Northrop
Aircraft, Inc. The Company serves

though mundane, products in
was

Aviation, Incorporated,

American

designing and manufac¬
turing cables and cable systems on^
a
high-quality,
short-delivery,;
well-engineered basis, cable was
one
of the most perplexing, al¬

$9,700,000,

acres

New

Odessa

Cement

Members:

where any impact of good
from
missile-space
age

activities

plicated systems. '
' :r
.
The
growth of Pacific Auto¬
mation confirms the urgency and

tached little but nominal value to

Alfred L. Vanden Broeck & Co.

results

tract changes,

$503,623 in 1958; this, despite a
drop in the number of Texas pro¬
duction
days from 171
days in
1957 to 122 days in 1958.
The sale of 5,261 acres at an
average price of $85.69 per acre.
The
average
price in 1957 was
$30.88 per acre. There was one
sale of acreage 16 miles west of

significant to

Bought—Sold—Quoted,

baby

lusty

sile

royalty wells of 198.
An increase in

SIEMENS & HALSKE

today

started

1958:

PHILIPS LAMP N. V.

are

LAMB0RN & CO., Inc.

Products, inc.

Pacific Automation

many

& CO. INC.

STRAUS

branch offices

our

stocks

leaders in the
the corporate giants of

However, Pacific Automation is
dawning
well-justified parallels drawn be¬
the security I like best because it
space
age,
Pacific Automation
tween the present stock market
uniquely combines pure participa¬
excesses
and
those of the late Products, Inc., is a striking illus¬ tion in missile-space age activities
tration
of the
classic "growth",
'twenties. I concur with this sen¬
plus
an
important
across-thecompany.
timent and feel that we are in a
board participation in the various
Pacific
missile: programs of today, thus
period which will call for high
Automation
selectivity and will produce ro¬
affording the Company, and by
was organized
tating strength. The one facet of
the same token the investor, the
i n 1955 and
this phase which is still to appear
security of not being tied to a
is
and, in my opinion, is sure to do today
single program or contract. And
astride
the
so,
is a land boom of gigantic
by its very; nature, Pacific Auto-u
missile
and
proportions.
It is ridiculous to
mation's1. product ; line
is not
talk of the. explosive increase in space activi¬
threatened, by obsolescence,;,,.but
ties
of the
our
population which is coming
promises to become more proprie¬
United States
during the 'sixties of the big
tary, and firmly entrenched, as the
so that it will
shift of industry and population
Company's capability increases.; '
been

GROSSMAN
N. Y.

have

There

WEINBERG,

field

Ralph E. Samuel & Co.,
New York, N. Y.

dramatic

very

future

of could
conservative ten

IRVING L.

japanese

prospective investor
activities will

find either that the

yesterday's market.

Mobile, Ala.
wires

Direct

in missile-space age

twenty years from now.
stock
closed
at
16% vin

the

verge

R. Y.

NY 1-1557

New Orleans, La. - Birmingham, JUa

to such enormous pro¬

has grown

portions, the

dream

may

you

any

Stock Exchange

HAnover 2-0700

nology scientists.
Because the American economy

This

for the
could

again

stock to put

stock,*

well prove to be

is time

based, for use with satellites or
vehicles* designed to travel out¬
side the earth's atmosphere. Space
Electronics is headed by two of
America's
leading
space
tech¬

continuing price infla¬
increasing oil income and

retirement'of

York Stock Exchange

19 Rector St., New York I,

Texas,

tion,

review

Steiner, Rouse & Co
Members American

children.

had

suffered

Members New

for your children or grand¬
In view of the growth

away

market

firmly

vestor, it is the ideal

10% decline. I
now feel
that

Stock Exchange

WOrth 4-2300

'■v

31ember

Associate
American

which

Established 1920

recommenda¬

$9.25

risen

Corporation

believe every trader
should give this stock very seri¬
ous
consideration.
For the in¬
I

had

stock

the

since then..

retired

this stock in these columns.

request

(Page 2)

years

On Jan.

Available

—Irving L. Straus, of Ralph E.
Samuel & Co., New York City.

retired

total

York Stock Exchange

Bought—Sold—Quoted

Pacific Automation Products, Inc.

25,800 shares, bringing the
in the last three

tional

Orange,N.J.

New

Members

of the

Trust Companies

and

here

Partner, Nugent & Igoe
East

Comparison of

D. MILLER

HARRY

Miller,

worthy of note
is the retirement of an addi¬
other item

The

Louisiana Securities

Trust—Harry

Land

Partner, Nugent &
Igoe/East Orange, N. J. (Page

intended to be, nor
sell the securities discussed.)

they to be regarded, as an offer to

Pacific

Texas

(The articles contained in this foram are not
are

Alabama &

Their Selections

A continuous forum in which, each
w

•

Participants and

Forum

placed in its hands.
Today's complex electronic sys¬
tems
are
made
up
of. intricate
.

components into which the

design

-aaura

nHfc

engineer rightfully puts every bit
of ingenuity and skill that he can

%
s

scope
of
the demand .for "its
products and services. Sales dur¬ summon, to turn, out a reliable
ing
the first year, 1956, were. product. But when these com¬
$1,100,000 and grew to $6,100,000 ponents^ are put into a system, the
in the second year, 1957. For the J system as a whole depends for its
.

third

the

year,

a
second

1958,

59%

reached
increase over

sales

year's
operations.'
$14,000, .01* $.04 „

reliability

not

only

the

upon

reliability of each component; but

the reliability of each and
connecting cable as well.
per share the first year, to $231,-* Every cable-^each conductor, each
000, or $.59 per share the second insulator, each connector or plug
year. Profits for the third year —and the jacketing which con¬
were
$403,000, equal to $.99 per tains and protects them, must be
share, a 74% increase over, prior mechanically, electrically, and en¬
years' profits:
For the current vironmentally suited to its task
fiscal year ending August 31, ales if the system is to be reliable
are
estimated at $15-17 million, This is why electronic engineers
and earnings of about $1.50.
are quick to agree that each cable
As part of the forward-looking is just as truly a* component of
program 'of PAP,
a subsidiary, the overall system as is each
Space
Electronics
Corporation, - black box. And just as any other
was founded in 1958. The opera¬
component is designed painstak¬
Profits rose from

centered

Space
the

ment, either air-borne or

ground-

♦

Jr.

rf^

* '

every

Electronics are ingly, for the utmost in
field of missile formance and reliability,
electronics and electronic equip-,

tions

,**

upon

Continued

per¬
so

page

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
20-Year Performance of I
35 Industrial Stocks

FOLDER ON REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N. Y

Volume 189

Number 5840

...

The Commercial and Financial Chronicle

The Road to Ruin

INDEX

"THE OVER-THE-COUNTER MARKET:

Administration,

Lehigh University:

'■»

leveling the charge of putting our economy on the road to,i'
against organized labor, Dr. Carothers graphically recapit¬
ulates what he says are labor's patently ruinous
practices.-

The well known economics professor

on the cover page, "The Over-tlw-Caunlt.x Market:
Progressive and Panoramic,w discusses the investment opportunities

inherent in securities available

challenges the American

(Table I,

years

page

(Table II, page 47).

27)

Germany's; and (3) would prohibit strikes for higher

than two years the
Rackets
Committee
has
record of union crime

■;

corruption, of extortion and
blackmail, of
and

bombing

Great

Wage Costs

The

Britain....!.
Real

;

in U.

134

West

100

1129

their

e m a

1956

Reflections

107

ficials, of union members maimed
for protesting, of fraud in union
elections, of bribes by businessmen prevent destruction of their
enterprises.

...

Strikes

ends.

never

69,000

Areas—Per

For
many
years
the
British/,
unions have forced unearned wage-

Import

Our

industrial

system

the

complex mechanism on
earth.
A group of Harvard economists may say in a book that
government debt is a good thing
or a leading
public official may
audience

that forced

labor

bosses

increases in inthe farmers.
This is
economic nonsense, of course, but
'it
requires
careful
analysis to
show

that

is.

/ Sometimes,

find

simple

stration

cently

however,
statistical

David

American

economic

can

demonRe¬

truth.

Wright,

University, pubpamphlet .which shows
comparative economic prog-

lished
the

West Germany and Great
Britain since World War II. I have
of

ress

Reduced

the

•

figures;

simple

ratios:
L

Gross National Product

,
^

West

/ .1949 •" 1956

Germany

Great

100

Britain

100

■

Otto

Rare

Direct

.Bank

(Boxed)-..

crime he goes to

juries "are

man

Pacific Uranium

Ling Electronics
42

___

;r___

...

Pyramid Electric

North Carolina Tel.

and

.....Cover

Stocks

Insurance

__1

....

Cpining Events in the Investment Field.j.

„L__

Not to Fund—That Is the Question"

of the News—Carlisle Bargeron..

Indications of Current Business Activity

are

commits a'

MutHal

jail/ Judges and

NSTA

equally

incorruptible^
Union officials are not thugs or
racketeers. Unions in England do
not practice blackmail or violence.
A very long time ago the English

Notes

News About Banks and

Bankers.—

Our
.

Wilfred

.Our.

Reporter's

Public

against the inordinate greed
of
that time, established the so-called
"right to strike."
It was actually

Utility

PhilaSelplifa

May

Report..

Commonwealth Oil

—

Securities.—

Railroad Securities

tyranny of the employers

___

Refining Co.

none

now.

aid

Continued,

page

Registration

Conv. 6s, 1972

Security

Salesman's

The Market,.

Offerings

Corner—1;

and You—By Wallace Streete...

...—

Washington
"Column

and
not

Published

——

Yeu__

Weekly

;

Harman-Kardon, Inc.*

{

available

Twice

King Oil of Delaware

The State of Trade and Industry.

this
*

Jerrold Electronics Corp.

week.

have

specialized in

PREFERRED STOCKS

BROAD

York

Stock

Exchange

ST., NEW YORK 4, N. Y.

Reentered

B. DANA COMPANY,

25, 1942, at the post office at New
York, N. Y., under the Act of March 8,1879.

Publisher*

REctor 2-9570 to 9576
GEORGE
,

WILLIAM

Subscription

Place, New York 7, N. Y.

Editor

MORRISSEY,

DANA

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SEIBERT,
April

23,

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TELETYPE NY 1-5
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1959

(general news and ad¬
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and
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WILLIAM

Members

Alaska Oil & Mineral

...

Security I Like Best

The

For many years we

Securities
,

workers in

Now

Prospective

privilege granted to workers to
injure an employer, to reduce production, without losing their jobs.
There was no such right then, in
law or justice or morals.
There
is

...

Securities

124

Chicago

men

anc}

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Reporter

San Franciseo

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intelligent, courageous
a

Thomas & Beits

(Editorial)!

Business Man's

important to consider what'
this about. English legis-

When

City

bi ought

In England the laws

Denver &

Regular Features
As We See It

are

„

lators

Lake

Price and Gold Movements 16

CED...

Eng¬

supr6m-;

have
finally
brought
about
aywretched,
half-baked
socialism,'
with the most cruel taxes in world
history.
-

patriots.

wires

t-t

Small Business Seen Chief Victim of Out-of-State Tax Trend 57

in world finance. The unions'

it is

DIgby 4-4970
Teletype: JCY 1160

Eckstein lor

Gratitude

City Stock Exch.

Exchange PI., Jersey City

Long-Range Federal Budget Projections Formulated by
,

175

Dexter M. Keezer Analyzes McGrawrllflPs
Survey
Capital Spending by Business.

■

economist of standing, courts, trying to protect working

at ^McQill

now

acy

enforced.

Britain With Germany

Compares

loss

Policy

structure,

land's world markets and

wage

dustry help

the

Unemployment—Roger W. Babson..-

; British Bullion Dealer Comments

contributing to

■

Great

British economic

Members Salt Lake

Ensley

Reeord Chemical Capital Expenditure
Outlays in 1958
? to Level Off in 1959-1960...^

that, of all the
the; decline of

says

leading

J.F.Reilly&Canbc

Attractiveness of U. S. Bonds

Salt

West

Wright
forces

most

and

sji

Germany adopted
certain key policies—a sound currency, a balanced budget, moder-

whole

Canadian Oil Group Urges Retaliation Against U.
S.

Britain,
the unions
are
probably ' the
most
destructive,
thing menacing in this preying by The tiuth is that the unions have
a small minority on a
whole na- been a factor in undermining the
tion.

ST. REGIS CORP.

Jacobsson

IIow to Solve

has

The TaftHartley Act was passed.
It has
accomplished little improvement.
To decent citizens there is some-

RACING ASSN.

America's Investment in Freedom—Hon. Henry Cabot
Lodge 22

increases by strikes, set up make-*0
work regulations, and prohibited
technical improvements
in pro-

than 10 years ago.

—Grover

been rampant since Roosevelt be-

Hoadley, Jr..:

'j Sound Economics for Developed and Nonindustrialized

ate taxes, and free enterprise. The
unions also adopted key policiescame
president in 1933. It has no make-work rules, approval of
grown steadily worse.
The situa- labor-saving improvements, and
tion
was
exposed
in
Congress strikes only as a last resort.
<
<
[
orgy

CHARLESTOWN

Britain.... 179,000

duction.

BROADCASTING

6
10

Current S. E. C. Legislative and Related
Problems
—Edward N.

•'

This

METROPOLITAN

National Economic Policy—Paul W.
McCracken

190

Ave'age Per m°nth' 7 ycarsv

Neil C*rother«
of-

Corporation—Ira U. Cobleigh..

Savings Banks in 1959

HHH

theft of union funds by union

PUBLIC UTILITIES

Burrelll..

-The Business Outlook—Walter

100

Lost

Germany

Great

of
tic

will,

-West

Days

CENTRAL

■_

Gadsby........^..,

Working

against

Gold—O. K.

Tele Prompter

bank-"

rupted

unions

Carothers.li...

Ruin—Neil

Economic Aspects of Instalment.Credit—Ben
H; Wooten...

106

100

Britain......

REEVES SOUNDCRAFT

1956

1948

Germany

Great

Inflation: A Problem of
Shrinking Importance
y/
—Sumner H. Slichter.i.

Wages

■

Cover

Coming Crisis in External Convertibility

214

100

Germany

Great

by
strikes,
of
working men

Road

The

-1956

1950

West

enter¬

Over-the-Counter Market: Progressive and
Panoramic—Ira U. Cobleigh

Unit'

per

and

murder, of
mass
picket¬
ing, of ruinous
illegal
boy¬
cotts, of help¬

y s

100

The

100

Britain...:.-

)

PERMACHEM CORP.

Cover

HHB1R9HH

occasion al

prises

Germany

STREET, NEW YORK

Page

Inflation: Sole Threat to Bright Economic
Future
—Hon. Robert B. Anderson..,

wages, V

"1946

West

WALL

Telephone: WHitehall 4-6551

Industrial Production

and

less

■

Articles and News

as a

arson

Available Upon Request

10-year category
99

last resort compulsory arbitration or the Swedish industrial system to what we now have.

Senate

Stol Paraplane

175

our

and favors

presented

Reprint from Flight Magazine

of banks and

names

those in the 5

country is the only one where violence, extortion,
blackmail and theft of workers' money go unremedied;
(2) '
blames British labor for Britain's slower growth than Western

well

AIRCRAFT CORP.

only in the Over-the-Counler Market

exemplified in the tabulations" showing the

companies which have paid consecutive cash dividends for 10

public and Congressmen to eliminate labor control of the nation
and, to show what can be done, proposes ten measures "to
stop this economic anarchy."- In addition the Professor: (1)
notes

I■MMMmI

aVD COM* ANY

LANIER

ARTICLE starting

tell

mm—m

—PROGRESSIVE AND PANORAMIC"

ruin

llCHKDSTEW

B. &

By NEIL CAROTHERS
Dean Emeritus, School of Business

(1851)

PHILADELPHIA

The Commercial and Financial Chronicle

(1852)

.energetic policeman,
antee honesty.

guar¬

can

the

DIFFICULTIES

been of 1929—the most distressed vicso
tims of the Great Crash which
quickly and completely recover- finally arrived in October. Do we
ing from the severe brain-washing perhaps face a similar situation
today; with
the experts being
given to the
to

Surprising

right but too soon?
\

contingent.
Scarcely a

nking

against the "evidences of increas¬
ing manipulative activity." To¬

by the Securia n d

t i es

Exchange

Commission,
Stock

the

Exchange
A.

Presidents,
;

Wilfred

May

prudent

br^erage "houses.

With barely a
pause,'reflected in a decline in
the trading volume and price of
some of
the more active issues,
the bull market has forged ahead
to new all-time highs. This performance by the market in bounding through the prevalent skepticism is naturally hailed by the
bulls
as
successfully absorbing
healthy medicine.

They were conducted by written
agreement among groups of
wealthy speculators; through exPert brokers operating as pool
managers on the Exchange floor
—the Harry Conten t s, Mike
Medians, Frank Blisses. The cur¬
rent. manipulative "jiggles
are
confined to a relatively small
number of lower-priced stocks;
and to a few ot the new issues#

taken

wifh

with

trrnin

grain

Jf
of

salt. Countering the commendable

(ti the authorities and
many
brokerage firms to steer
the market's participants to more
sober investment behavior, with
attempts

rSf 5?nf °thp mir!vniSifuPS

ja:i»

nooi<..

formaf

inmA

business
is

category

ac¬

fication is- such that it felt this
shock possibly less than any other

•

includes

62,900

71,550

$464,090

67,800

$1,054,165

41,341
17,300

$1,775,523

49,701

188,750

$3,293,778

Z2°^Z!
expansion,, one geared

£^^3^
new

synthesis.

*UU±

Tech^logy

consumer

Chemical products pro¬
duced from petroleum and natu¬
ral

form

gas

the

petrochemicals

than

ing includes confidential data and

try,

difficult

classify

The

metals

,.sion,

that

new

laboratories

contains

increase, despite the
recession, over the $107.2 million
laboratory expenditure listed in
the survey last year. The 1958-60
figure includes $27,425 million for
planned construction; $59.6 mil¬
lion

for

physical

static.

cated

large

degree

re¬

The industry

long has maintained the number
position in expenditures for
privately-financed basic research
and its 1958 budget of $542 mil¬
lion

for

all

research—basic

privately-financed
and applied—led

the industry

peers in the utilization of
and in its willingne s to-

to the future, as evidenced by its

increased

chemical

lories

ducers, long the collective lead¬
in privately-financed- research
expenditures, will spend at least
$87,025 million to construct new

budget for

labora-

new

shown in this survey,

even

in the face of the recession."

pro-

Many

industry

anticir

leaders

laboratories

1959

and

1960.

According to results of the
nual:. construction
ducted

includes

the

Chemists'

survey

con-

Manufacturing

Association,

;

an-

this figure

estimated $59.6 million

accelerated

pate

chemical

plastics, fuels and

re-

pro-

pellents, man-made fibers, drugs
and pharmaceuticals.

Greatly in-

creased activity is expected in the

development

treating mental,

preparations
cancer

for

and geriat-

ric patients, among others.

TABLE II
;

MCA ChemcialTndustry 1958 Construction Survey by Category

It is

generally agreed, the MCA
pointed out, that future chemical
industry growth will be predi¬

improvement of existing

construction.

fa-

Laboratory Expenditures Detailed
nation's

products
rnodifica-

research

The

and

new

the

invest its own money in its own
expansion, future.
imply
."This would indicate to me that
growth is the chemical
industry is geared

under

construction, and
million
for
completed

tion

not

processes-and

has

industry's
research—

?nes'r Fortunately,

Preluded, that the industry
cilities will remain

mercury,

substantial

does

course

further

predicated

before

ever

^e introduction

could,, signify the
ol one phase or era

rounding out
special :/ot chemical
industry
by This

nio¬
bium (columbium), tantalum, ti¬
tanium, uranium, vanadium and
zirconium, and the ferroalloys of
chromium, manganese and sili¬
cons.
Examples of metals
ex¬
cluded
from
this
grouping are
copper, iron,
lead and zinc.
boron,

then,

processing.
This cate¬
includes alumina (correct),

beryllium,

ancj

No Static Growth Implication

modified

than

chemical
gory

expan-

realizing/ the culmi-

chemical

will

a(jvance

in the

The

unparalleled

nation of goals established

is based
facilities for

production
ferroalloys
and
other
refined

its

privately-financed
now is

grouping

new

metals

late 1940s and early 1J50S.

Metals;Grouping
on

because

Agc Qf

markets that are rapidjy increasing in size and number,

recession,.-

rate of

specifically.

even more significance

the

perhaps, is
•/the fact that the chemical indus—

group, and the miscellaneous list¬

one

7,750

PjA

the beginning of what might be

heS"and'divlSl-

industry's

major^ manufacturing group.

sults of its research.
8,650

President, said inpart.

only those produced by chemical

$70,145
103,426

610

325,300

44,075

103,650
-

President

many ways
the results of "our

esti¬

classification by product

investment

counts

for

proj¬

—

Totals

$1,189,243

158,175

(25 projects, 1G communities)
New England: Maine, N. H.,
Vt.,
Mass., R. I., Conn. (34 projlocation

$616,843

115,250

Mon;., Idaho, Wyo
Colo., N. M., Ariz., Utah, Nev!
projects.

$159,250

Calif7~(80

Ore.,

Mountain:

(35

Total

Y., N. J., Pa.

lommunities)
Ky., Tenn.,

communities)
Pacific:

Completed

85,300

Cent-;'!:

Miss.

Construction

19,825

North Central: Ohio
Ind.,
EL, Mich., V'sc. (12G projects,

Middle Atlantic: N
(154 projects. 7 P

the

million.

The $157,170 million earmarked

~Va
Fla!!

Mcl.,

East

East South

thousands)

$113,150

Va., N. C., S. C., Ga.,
(100 projects.'GO
communities)

73 comm„n.'ti s)

Planned

Atlantic:

Value

Under

Regions (I3y Rank)
West

for

accounts

areas

place with $473.2 million, and in
numoer three position is Califor¬

already begun

The 216 projects

survey

and

England

"This

construction

repeats

states.

by 98 companies

Louisiana

pro¬

full-time

ditioned by. the economic recestlie
$115,775 million; synthetic rubber,
si on
that
enveloped the nation
$53,523 million, and laboratories,
"earlv in 1958 although tho ohpmi
$157,170 million.

Texas

By the end of the
year, however, the industry's con¬
struction program had
begun to

annual invest¬
13 years has
$1 billion.

average

for
more

tinued steady expansion of chem¬
ical-producing facilities.

This decrease has been ascribed

ducers

New

and

the

Association.

mid-1958.

industry's expen-'

"Although the;/ totals for the research financed by all U._ S.
1958-60 .1959-60 Planned
and Under Con- industry.
produc¬ ;struction
categories fall appre- *
Thls continued investment of
tion facilities for general organic
ciably below those for a similar millions in research facilities and
chemicals tops the list at $801,433
-period in last year's survey, I programs, according, to the MCA*
million.
believe close examination of the establishes the fact that the chem-f
General inorganics are in sec¬
industry's
recent- history
and ical industry possibly is more deond place with $597,210 million,
trends will show that these sta- pendent- on
research than * any
•followed by plastics and resins,
; tistics are not necessarily incom- othcr major manufacturing group,
$392,745 million; synthetic fibers,
patible with our overall pattern
hn announcing the survey re$254.2
million;
petrochemicals, ,off continued
progress.
suits, Gen. John E. Hull, >USA
$239,750 million; metals, $174,757
(Ret.), the Association's full-time
"Capital expenditures were con- 1
.7 ,
million;
chemical
fertilizers,

new
plant and equip¬
eight consecutive years

logical trends will result in

in
of

chemical

East issued

Centfal

total

Most industry leaders, accord¬
ing to the MCA, expect that new
product demand resulting from
recent
technological
and
socio¬

(1959-60)

Construction is more than $1 bil¬
lion under the $2.54 billion listed
for

for

the

ment
been

total for the

categories of Under Con¬

survey

struction

The

billion

and

Near

are

funds.

the

category,

ample, has invested more than $1

communities of 43 states.

ets

non-MCA-

ex¬

penditure represents a total of 802
projects by 287 companies in 432

companies.

research,

major share of their budgfinanced by; government

ditures for basic research alone—

mated total of $188,750

V
chemical

but the

financed:

member

industry, for example

—spend more money on

; Gen. John E. Hull, USA (Ret.),

cific

ex¬

The

ex¬

the aircraft

Some

chemical-producing faciliin the—survey are

included

being

Illinois,

Construction not listed for spe¬

de¬

large

—

States.

being realized to

are

survey

three-year

the

meet

States

Central

endeavor, from

obtainable.

are

North

projected population
increase and a rising economy—

period, 1958-60.
combined

War

mands

estimated $3,293

billion for the

ties

East

primary

data

the

$384,825 million.
Following these are, by rank,
the Middle Atlantic, East South
Central, Pacific, Mountain, West

general level-

industry, however, because longterm
goals — established
after

for

ture

The

million.

S526.350

North

ing-off of the chemical industry's
requirements for new facilities.
This "leveling-off" is not con¬
sidered alarming throughout the

survey, an*
additional $1,054

underway and $464,090 mil¬
for

with

which

Indiana, Michigan, Ohio and Wis¬
consin—are third with a total of

is said to reflect

billion will

cutbacks

the

by the recession, the bil¬
the previous
survey
total for Planned Con¬
struction and Under Construction

its

results

their

lion-dollar drop from

The
n

for

caused

lished in 1957.
i

addition

struction

con

Delaware, Florida, Georgia, Mary¬

for

completed

region

land, North Carolina, South Caro¬
lina, Virginia and West Virginia—

facilities.

$1.3

billion

construction

Under

Construction

Completed

$41,000

$22.20C

$52,575

Inorganic chemicals (general)-..

40.800

327,646

Laboratories

27,425

59,600

18,100

15,450

152,940

246,730

22,000

53,050

54,70C

173,850

Planned

Category
Fertilizer

—...

Metals

Organic

chemicals

(general)

Petrochemicals
Plastics

and

—

_1'1

resinsr

Synthetic -rubber--___»,___xl;—_•
Synthetic

fibers

Miscellaneous
Totals

—

-C

59,500
..

72,245

$464,090

$1,054,165

157.170

141.207

174,757

401.763

801,433

164,700

239.750

164.195

392,745

24.523

53,523

140 309

254.200

187,345

>307,215

$1,773,523

$3,293,778

54,400

47,625'

797.210
.

29,000

—

423,770
70 14-3

Total

$115,775 J

„

Number 5840

Volume 189

The Commercial and Financial Chronicle

...

(1863)

those persons who may be
responsible for untrue statements
of, or omissions to state, material

tions /on

upon

Cm rent S. E. C.Legislative

facts

And Relattd Problems

with

Section

By EDWARD N. GAD SB Y *

vides

Washington, D. C.

SEC head outlines pending

Bill to

^■ developments discussed, introduced this year as H. R. Nos.
5001, 2480, 5002, 2481 and 2482 and, in tlie upper house, as
S.1178 through 1182, deal with the SEC Act of 1933, includ■p. ing Rule 133; SEC Act of 1934; Investment Company Act;

such

tighten jurisdictional provisions, correct specified inade¬

Iations; hopes Rule 133 concept of "a sale" and "statutory

underwriter" will be clarified; and asks fprebearance because
of

about.'

Just '

deluge of recent filings.4

year

•

taken

ago'

upon

"the

•

■

;

actually ' guilty of uttering
misleading information.

the Securities and Exchange Com¬

session

rules

certain

period, ? the Commission
and reappraised
legislative suggestions fjti
the light of its further experience,
Accordingly, in January we subhas

and

and gave some,,

passing atten-«
tion

Rule

133,

mitted

to the

proposed

had:
at that time

and

consideration

the

Com-

mission

and

study

by' the,V

staff.

sections

then

Edward N. Gadsby

the

all

duct.

the

one

hand

there

should

officer,

director

other in-

dividual associated with the offerwho

can

sustain

the

burden

statutes ;

misconduct or bad faith, whereas
- the
issuing corporation would be
■'absolutely

liable.

think

that

enactment of this proposal would

last

tion would still be
the

analysis,
of
injunc¬

discretion of the

greatly

court.

added

which

Changes
conform

the

ers

and

similar to

abettors

prohibit

the

tion of

member

broker

dealer.

denial

revoca¬

broker and dealer regis¬
be
broadened to

would

convictions

justifying

sdtrh actibft fly us must arise out
of securities transactions or from

conducting

broker

business.

are

dealer

Change Would Suspend
Registration

Ex¬

The

Commission

has

also

pro¬

posed that it be given the power
to suspend the registration of a

em¬

Act

for

limited,
-

broker-dealer
the

testimony

the

registered

The

include conviction of any "finan¬
cial
type"
crime. As presently

bezzlement of money or securities
entrusted to the care of an ex¬

change

respect

procedures involved

tration

In addition, we propose to add
Section 35 to the latter Act

would

the

15(b)

which

grounds

new

Which

also suggests
Section

with

impose, and
in post¬
poning the effectiveness of regis-tration. Under these proposals, the
the

those

the Securities
change Act of 1934.
proposed

Act

the Commission
may

in the
essentially to
provisions
of

proposed to the Securities Act

'34

bases

proposed

certain

of
the
registration of.,
brokers and dealers may be denied
or
revoked, the sanctions which

would

are

program

amendment

judicial
would
'
-V

which

section would be

a new

orders

the effect of

its scope.

narrow,

the

matched

extremely restrictive

Our

Finally,

manipulation
overcome

interpretation,:

matter within

so-called

in order to

the issuance of the

the

proposed amendment

altering
their.. general
effect. We have recom¬

hibition

in¬

miscon¬

administer except the Public Util-

;

future

course

Foreign

recommendations, 'which - would
amend an aggregate' of 88 ; sub-

under

were

past vio¬

•

Interstate1 ing

against

mended changes in the wording of
Section 9(a)(1)
concerning . pro¬

clear

very
a

being

purpose or

Trust Indenture Act

Commerce,
which ; of proof that he acted in good
groups are respectively
charged fsfith and did not know of the
with the duty of exercising watch- untruth
or
omission.
Thus we
fulness over the administration of propose
that; those 1 individuals
•the Federal securities laws. These ywould be liable only for actual

from

offic i

recommendations

Committee

without

use

junction

the

Congress, which were duly sions in an exempt offering upoii

House

with¬

drawn

Banking And Currency and the

which

been

revised

made

were

their

this
Act
would
clarify and
strengthen the statutory provisions
relating to market manipulation

be no defense of lack of knowl- that statute to certain of the
edge of any untruth or omission recommendations made in con¬
-by the issuer in a document filed nection with the Securities Act.
.with the Commission. On the
Proposals Covering 1934 Act 1
other hand, it does not seem
/reasonable to impose liability for
Amendments
concerning
in¬
misleading statements or omisjunctions, indirect acts, and aid¬

referred to the Senate Committee

amendments

reexamined

these

amendments1

from

specifically
sells to a dealer and the dealer in prohibit persons from doing acts
turn sells to an investor, there is indirectly which they may not do
-doubt whether the investor can directly, and would make it spe¬
go beyond his immediate seller cifically unlawful for any person
, (the dealer)
and recover from the to aid, abet or procure a violation
issuer,' who may be the person by another.

these proposals. During the inter-

security

provi¬
prohibit such

would

A further

enforcement activ¬

Congress intends

recommended

violation of the 1934 Act.

ground

lation to form the basis for

purchasing
him."
How¬

under this provision, where,
very often happens, an issuer

described briefly the adoption by
mission

mission in its

person

ever,

embodying

bills

the

doubt

injunction

•

or sells" a security by
misleading statements is

"to

courts,

many

considered

are

got possession, the Com¬
has

which

actions in words which will leave

While

engaged.

sions

they indicate the possibility
of
future violation,
there have
been
some
dissidents,
and
it
would materially assist the Com¬

offers

;

after he

mission

that

the

that

liable

activities. Mr. Gadsby abhors present investment adviser regu-

pro¬

ities

quacies, facilitate criminal prosecution and other enforcement >

now

liability

torthe fraudulent sale of securities

false and

The intent is said

and the In vestment Advisers Act of 1940.
to

of the Act

civil

"is"

sufficient basis for

Section 3(c).

that a de¬
engaged" in acts

violations

past

under

generally, regardless of whether
they are registered. Section 12(2)
provides that "any person who

'
.

The current

certain size to disclosure requirements.

fendant

connection

omissions in a registration state¬
ment, and Section 12(2) contains
civil liability provisions applicable

Congress which would have subjected unlisted firms

beyond

;

for

exempt

event of material misstatements

legislative proposals, and related

problems, involving the nation's securities laws. Moreover, he
announces that the SEC will not re-submit last year's Fulbright

3(b)

Section

Chairman, Securities and Exchange Commission
-

offerings

showing

"has

constituting a violation, instead
of making us show that the de¬

document filed with

any

Commission

the

fendant

extreme

when, in its view,does not warrant

sanction

revoca-'

tion. Under present

law, curiously;
enough, we have power only to
revoke registration with the SEC
or
to
suspend
or
expel
from
membership in the NASD. There

now

contains
prohibitions against
fraudulently obtaining customers'

furnish investors with the addi- funds or
my
securities, but does not
principal attention to the Ful- introduced in January and Febru-'tional protection which seems to contain
an
express
provision
bright„ Bill,
which
in
general ary of this year, in the House of be required in Section 3(b) ex- against embezzling or converting. are situations which come before'
would have imposed upon every Representatives by, Representative teihpt offerings.us where revocation is really not
Inasmuch as the distinction be¬
called for, but where mere sus¬
unlisted company having $10,000,- Oren Harris,
Chairman of • the
tween fraudulently obtaining cus¬
000 of assets and over 1,000 stockHouse Committee as H. R. Nos.'^ou,tl
Exempt Offerings tomers' funds or securities and pension or even expulsion from
holders, approximately the same 5001, 2480,: 5002, 2481 and 2482. \ In this same general connection, embezzling or converting them membership in
the Association
would
not
afford
an
disclosure
requirements
as
are Companion y.bills embodying the we propose to amend Section 24
adequate'
frequently
depends
upon
the
sanction. In some instances, where
how imposed upon a company same proposals were introduced to'. extend criminal liability for
technical question of whether the
listed
on
a
national securities in the Senate in February, 1959 by documents filed with the Commis- defendant had a wrongful intent the broker-dealer is not a member
exchange.
;i
"
V
* Senator
Willis ; Robertson, ;sion to cover exempt offerings at the time he induced a customer of the
NASD, the only alterna- ,
The Fulbright Bill has not as Chairman of the Senate Commit- made pursuant to Section 3(b) or to entrust securities
to him
or
tive is revocation of registration. r
yet
been
reintroduced
in this tee, as Senate Bills 1178 to 1182,:,3(c) and even further. This Sec- whether the idea of converting the
Continued on page 55 <
Congress. Whether this situation inclusive. The overall purpose of; tion now makes it a criminal securities first occurred to him
will
continue, 'I do not know, these
recommendations
is' to 'offense for any person wilfully to
There is ho visible inclination on strengthen
the
safeguards andVfalsify a registration statement
the .part of the Commission itself protections afforded the public by filed under the Act. The Commisr.;')
to submit this legislation for in- tightening the jurisdictional pro-, sion now suggests that this section
We offer, subject to prior sale;
troduction, though, as I said last visions of the1; statutes, correcting apply not only to a registration
year, it is convinced that fair and
certain inadequacies, and facili- statement, but to any application,
effective control of the securities tating criminal prosecutions and report or other document .filed
market and adequate protection other enforcement activities.
We under the Act.
to the investing public can be are hopeful- that hearings on theseA further amendment of Secachieved in^no other way. There bills will be scheduled in the very tion 12 is in our program, inserted
ALABAMA
are various reasons for this attinear future. In the meantime, we 111 order to resolve a troublesome
tude, not the least of which is a are engaged ' in
attempting - to question which has arisen conreluctance to recommend legisla- delineate - any
areas
of conflict
"^is of
directed

ity

Holding

Company

Act,

were

„r

CITY OF FLORENCE

5% First Mortgage

tion which
of

essentially
^
UJL
ail
UJ.
mgless exemptions.
\
-these proposals would carry
[Here -are]
.
some recent: paper to inordinate lengths.
I
developments in what might be would, however, like to go; over)

llnhilitv

tr»

nttnrh

tho

'must

Development Revenue Bonds

Industrial

passage

(These bonds do not

carry any

Exchange Offer

cOnbeive to be

^ ™°re

been proposed ana nri which com- ;.,
on wfnch

ajso about /

the somewhat related field of our

legislative

*• -

Vr:4~
First let

have

thevlhirxk
^ properly heid that the
we vro\ ^m mails or interstate facilities
v "
' cuffi/Wont*
in any part of the transactions is
w.'iy-1
nvemta liohuitv
w«

from -.^g

I-

wouid be applicable if there

various

For

Congress

August, 1958,

reasons,

in
action had been
adjourned

'
^

*An address

American

taries,

„

by Mr. Gadsby before the

Society

New York

Corporate

City, April

Secre-

16, 1959.

—;—■

„

which

constitute,

denture Act -of 1939, Investment Company
Act of 1940 and Investment Advisers Act of 1940.

mpnrJe ampnHmPrik

amenamentS

which

WOUld

t/v this

<5Pntinn

tniS Section

authorize

lnjunc-

2,000

$28,000

1975

1973

40,000

1976

1974

3,000

1977

•.

■

maturity

PRICE: $850.
per

Interest

than 6%

plus accrued interest

$1,000 Coupon Bond
payable April 15 & October 15

Interest is exempt
in the

will consti¬

1 Rule 434A Act of 1933, Securities Ex- tute, a violation of the Act or any
and Note to Rule 460.
2 Securities
chim7e Ac\^oM934.' PubHrruViVity"'Hald- rule or regulation thereunder.
»,ns Company Act of 1935, Trust in- The legislative program recom-

Maturity

Amount

1972

Yield

day conditions in order to facili- counterpart. *
tate access to the public capital
Section 20(b) of the Securities
markets by "small and mediumnow
provides
short that
sized businesses. At-the. rsame
Commission may obtain an
certain proposals to amend an ag- time, we propose to amend Sec- injunction when it appears that
gregate of 87 subsections of five li°n 12 to add a new subsection any person js engaged or about to
of the six statutes which we ad- which would-impose civil liability engage.rin any acts or practices
When

45,000

public interest. Pursuant to this
mandate, the Securities and Exchange Commission in the summer
of
1957
submitted
to
Congress

minister.2

10,000

jurisdt'tional

One of/our Jjon

^increase

Stylon Corporation) *

Maturity

Amount

5een any use Gf the mails or
Turning first to the latter sub- $300,000 to $500,000-the size of 'interstate facilities in connection
ject, let me remind you-that the: offerings which may be exempted ^h'the transaction, thus conCommission
is
specifically
re- from registration by the Corrrmis- forming
the
jurisdictional
re¬
quired by statute to rngke such sion pursuant to Section - 3(b), qhirements to those contained in
legislative - recommendations
to under which 'our Regulation A Section 17(a), the anti-fraud prothe Congress as it may from time was adopted. We believe that this vision
of the statute of which
to
time
deem
desirable
in the change is necessary under present Section
12(2)
is
essentially
a
-

from

f-'L '•''*■*«/'' 'S':l^n'guage. be itseparately stated so
take up the Securi- •
.w flint the <?er-

^ctiyitie^iii^Ke- first proposals of
ties .Act would
;•

of the 86th Congress.

session

•.

Other courts

fromv; Reviews Proposed Changes in

been: receiyed

lnterest^vpersops, and

glntatlon '

from Federal Income Tax

opinion of counsel.

GEARHART & OTIS, Inc.
74

Trinity Place, New York 6, N. Y.

WHitehall 3-2900

The Commercial and Financial Chronicle

.Thursday, April 23, 1959

(1864)

well force the hands of the Amer¬

American

The

authorities.

ican

stock stands at present at
$20,500m. of which some
$11,900m. is needed as legal back¬
ing for the Federal Reserve Banks'
note and deposit liabilities.
But
some $8,600m. of short-term dol¬
lar assets are held by foreign gov¬
gold

THE MARKET... AND YOU

about

Notes

NSTA

Central Banks and

ernments and

meeting of the
Washington, D. C., Security Dealers Association
held on April 9 in the New York Room of the
Statler Hotel, the following new officers were
elected for the 1959-60 term: President, Ray¬
mond Jacobs, Kalb, Voorhis & Co.
Vice-President: George J. Mitchell, Jr., G.
annual

the

supper

Investing As¬

Willard

Federal Investment Co.

members

converted
by Central
This is citing the
extreme possibility but, if some¬
thing like it happened, the further

represented
the participants of the annual meeting.

among

possibility of an embargo on gold

Ray Jacobs

British Bullion Dealer Comments

sales (hinted at by Mr. George M.
Humphrey, then Secretary of the
Treasury, to the Senate Finance
Committee last July) could hard¬

Gold

year's increase in non-resident gold deposits said to be
of business prior to 1939, and to the
continued large scale minting of British gold sovereigns sold
for export against dollars. Commenting on last year's gold
price rise agitation, the Review admits there are other ways
of stimulating an economy and increasing world's reserve
liquidity without devaluation. Further, it contends that in the
event of a U. 5. gold embargo there would be a substantial
rise in the price of gold abroad.
past

substantial

and

diate

dollar

reminiscent of this type

price

rise

in the

outside

gold

the

United States.
Gold Coins

"Although

the

after

postwar

opening of the London Gold Mar¬
ket in 1954, London soon became
again the leading center for inter¬
national trading in Bar Gold, it
had, until last year, handled but a
small proportion of the busi¬
ness in gold
coin, for which the
main
market still
remained in

very

The Annual Bullion Review of
&

Co., Ltd., London, in February,
1959, ..discusses growing investments

gold, the not inconsequential matter of a higher U.S. A.
price for gold, and the profitable
sale of British gold sovereigns for
dollars.

individual countries'

stimulus

firm of bankers and bullion

mer-

re-

the

American

Switzerland.

"It became known

late in 1957

that large-scale minting of sovereigns had been resumed by the
Royal Mint and that these and
older sovereigns would be offered
for sale by the Bank of England.

Both these arguments The last Annual Report of the

known economy.

this well

gold

The second reason put
forward for changing the gold
price was closely related to the
business recession in the United
States. It was urged, especially at
the beginning of the year, that
this revaluation would provide a

serves.

sharp

According to

"AlthmiPh

hoarding

world's

thp

nrivate

feSwav

d«rmnd aeain

estimate

economy and several alternative single year since 1925.

We under-

of £°*d*

'°J!fr

tions increased from about 1,500,000 ounces in 1957 to about 8,000,000

last

year,

mainly

Switzerland,

London

ounces

bought

i.'

■

ess,

American Motors and Stude-

'
if

baker

show

continued to

—

Quality issues took turns at volume but indecisive price
leading the way uphill, some action.
}.,■/
'if
"if
$
i
j?
of the chemicals, the cameras,
electronics and drugs all in
Laggards were the same,
the limelight on occasion with old lineup—the oils and airsome of them
given to leaping crafts. The rails, which had
ahead wildly at times. For a gone along with industrials
$70 issue — L. S. Starrett — a for a bit, also tired and were
4-for-l stock split and a five- given to
dragging action this
:•. :•
❖

•

in market

appreciation as the
There were also a few earn¬
big play around stock splits ings reports that v indicated
continued.
some of the
companies around
*
❖
*
have yet to participate fully
With the advance running in the business
upturn as far
into a string of sessions cover¬ as
profits are concerned,
ing more than a week without notably Pfizer and Federal
a
setback, the progress was Paper Board which .showed
getting harder steadily. In slight dips for the first quar¬
fact, two days to start off the ter. It served mostly to make
week saw the average higher the market
analysts review
while more issues declined their
projections for the entire
than advanced which, again,
year since managements of
showed the prominent part
companies in this category
being played by the blue chips Were all optimistic. In Federal;
in keeping the barometer
Paper the official prediction
titled upward. The newcomer was that the
pickup in busi¬
to the list of wideswinging ness will boost it to the
$4 per
items in the quality last was share
profit eventually.

sibility that the dollar price of
g°ld .will be raised for external
reasons. Although we do not foresee a l°ss of confidence in the

in for

of more
points and
which extended the range of
^«l^
the newly-split shares to more
than a dozen points although
the split was only effective
April 14 and the new shares
111Parcels °f newly minted have only completed about a
and older types, were sold for ex- month of trading.
°
ment in U. S.
d ars* The.bulk ofi the sales was
Fantastic Mover
to the Continent although there
The fantastic range for less
was a good demand from other
than four months of the year
areas, notably Canada.
"We append a table showing the is Zenith Radio which this

it at about; methods of increasing the world's stand that this gold coinage was
4,000j)00 ounces of fresh produc- fese™e liquidity without chang- continued in 1958.
tion gold in 1958 against about inf
pnce
S f
ii?a t nndnn
7,500,000 ounces in 1957), invest-' ■ Whilst the pressure for a higher J Bank of England to the London
ment in gold by individuals, in- S°ld price on these two grounds Market started m January, 1958,
stitutions, and even some foreign will, be stoutly resisted by the and a good turnover has been exgovernment bodies rose sharply. American authorities, that does porienced throughout the year.
We estimate that these transac- not necessarily rule out the pos- The sovereigns, usually given out
last year (we

cessive about it. In the proc-

found little favor in the United Royal ..IVfint stated that 2,072,000
itself. There are many sovereigns were minted in 1957,
other wa^s of stimulating an the largest number struck in a Eastman Kodak which went

States

chants*

v':.:/;;

new,

dividend increase was week.
ly be overlooked. Such an action cent
would certainly lead to an imme¬
worth nearly two dozen points

Annual review of Samuel Montague & Co. calls attention to

1958 issued by Samuel Montague

to consecutive

inves¬

Banks into gold.

Washington brokerage firms were

average
all-time

bil¬ ago.

several

by foreign

proceeds

executive

and

Officers

Valkenburgh,

Van
■

held

tors), which could in certain cir¬
cumstances be liquidated and the

sociates Inc.
Treasurer:

(excluding

into

dollars' worth of marketable

lion

securities

Secretary^ Donald Joy, FIF

to be converted

were

$6,000m.

Mitchell, Jr. Co.

The march of the industrial

however* Ford finally
gold, because of a loss of confi¬
highs continued into equalled in listed trading the
dence in the dollar, the situation this week with the index at¬
$64.50 price tag put on the
would begin to look quite differ¬
shares when they were origi¬
ent. Moreover, private firms and taining a lofty standing above
individuals abroad also have short- 630, far ahead of the famous nally offered publicly early in
term
dollar assets
worth some 386 peak recorded 30 years 1956. The independents —
if these

ASSOCIATION

WASHINGTON, D. C., SECURITY DEALERS
t

By WALLACE STREETE

one

than half

daily

move

dozen

Activity in Telephone

The

high activity set off in
American Telephone issues by
ratification

its

first

stock

split continued although after
carving out some wide gains *
both issues bumped into;
profit-taking, particularly the
old and

vulnerable

shares.

They had, however,
come within only a few points
of the 274 peak recorded in.

dollar in foreign financial circles
*n the immediate future, one cann°t exclude the possibility that a
1930 but well under the 310.
further decline in dollar holdings
banks in these countries for the caused by the American Govern- premium
ruling for sovereigns
of
1929.
The advance
did'
week erupted out of the 100account of foreign customers. This merit's
difficulties in handling and foreign coins at various interserve to delineate sharply the,
point swing it had built up
type of business was quite usual their financial problems might vals throughout the year."
con schools over:
in the London market prior to
earlier between 178 and 278 pro and

and Canada.

A fresh factor in the

gold

postwar

markets

thus

was

in the appearance of a large
demand for gold to be held by
seen

Premium of Gold Coins Over Their Gold Content

1939 when very large gold depots
established in London by

Expressed in per cent

were

non-residents."

U.
"This

Jan.lt

Feb. 28

Sovereign—______
Napoleon

Price

growing interest in gold

closely connected with the dis¬

was

1.958

■

•

Gold

cussion which continued through¬
out most of the year about the

16
25

21 y4

S20U. S. A

15*4

13%

Union Latine 20 frs.

20 Mark

42%

May 14

11%

11%
47

World Gold Production

16%

9%
35%

15%

13%
12%
8%

16
11%

Dec. 31

Oct. 31

Aug. 29

15%
27
18%

11%
8%
5%

8
36%

36%

possibility of a higher dollar price
gold. This talk was accom¬
panied and stimulated by a con-

whom

the

eluding the U. S. S. R., was about
30,200,000 ounces fine, an increase
of almost 3% on the previous

tinuous outflow of gold from the
United States from February on-

foregoing table, makes the following observations:

year.
The increase was again
largely due to South Africa where

for

wards. The

causes

for this outflow

"Union
we

Corporation
are

Ltd.,

indebted,

for

"'From information received to

drlg tC year: date

il is estimated that in 1958

the »-°rld

°f

g°ld>

fleeted the fall in American export

earnings.

In most discussions and
two

publications
given

were

revalued
States

lated

whv

the

"old

terms" of

dollar.to

basic

The

reasons

should

the

first

so-called

United

was

re-

world

li-

quidity crisis and it was pointed
out in some quarters that m the
"

„

period

during

which

the

„

dollar

With

Montgomery, Scott

dwtt

dut a

n/r

PHILADELPHIA, Pa.

Montr

—

S?me£y' Sc°u.& £°-» ■members of
theJ NJlw 70r^ Stock Exchange
and other leading Exchanges, announce tha1\ Russell D. Plass is
LfXwIS
with them as a
nnnr

...WU

registered representative
Philadelphia

office,

123

their

South

output

rose

635,000

t->

tvt

BIRMINGHAM, Ala.—The firm
Mr. Plass, who was formerly
associated with Bache & Co., has name of Odess, Martin & Herzbeen active in the investment se- berg, Inc., First National Building,

emanded sharnlv
iL.

trade

had

An increase in
i+

„rQO

toe price of g Id, it was

argued,

would help to relieve the pressure

CUrities business for
years.

number of
,

the

issue

was

too

❖

was

sive action. To the anti

bit

more re¬

the fact that the

new

school,

;

dividend

has been changedto Odess-Martin,
inc.

strained but also
new

Broad Street.

world

Du Pont

price had remained unchanged at
ounce

whether

stock

kept forging rate of $3.30 on the split
highs although here shares brought the yield down
the peak still is short of being to less than 4% was a sign of
historic since this issue posted caution,
particularly sinceD. H. Blair to Admit
AT&T was traditionally in the
Henry R. Nathan will be ad- a price of nearly 250 in 1955
mitted to partnership in D. H. which hasn't been approached 5% or better yield class more
Blair & Company, 42 Broadway, since, although the gap was times than not a few years
New York City, members of the
back.
New York Stock Exchange, on whittled down to around a
Steel Worries
j^-gy |gj.
dozen points as the result of
The good earnings reports
its continued good action in
Now Odess-Martin, Inc.
cf the steel companies found
this week's early sessions.

record.'"

$35

per

past 300 at its peak. A

split has helped high or not.
❖
*
#
here following one a scant
To the proponents who see
year ago. The new high con¬
trasts oddly with the peak of AT&T with an earnings po-.
around 150 reached by the old tential of $15, or $5 per share
shares
prior to last year's on the new stock, a ratio of
split. Issues that have quad¬ 20-times earnings was con-;
rupled in so short a time sidered appropriate without
aren't many.
the issue showing any exces¬
new

ounces—

about 3%%—and reached another

race

little reflection in the market
Motors

were

demand without

occasional where the big worry

anything

ex-

excess

over,,

inventories. In the

Number 5840

Volume 189

...

The Commercial and Financial ChrQjiicle

(1865)

Armour, David M. Goodman, Rex
Form First N. Y. Inv.
(partner of Sutro
First New York Investing Com¬
Co., investment bankers), How¬
last hall of the year. Jones & poration of Los Angeles, Cali¬ ard
James,-John Lishan, Samuel pany, Inc. has been formed with
fornia, a West Coast manufacturer
Laughlin reported $1.97 for.
Pelmart, Galen A. Skutt, Thomas offices at 180 Madison
of transistor test equipment, tran¬
Avenue,
the first quarter against 17,
P.
Walker
(Special Counsel of
sistorized
power
supplies,
and
New York City, to engage in a
cents a year ago. But analysts ;
Litton Industries), and S. C. Ward,
temperature transducers, an¬
event

steel strike is averted

Named Directors

it will affect business in the

Cardinal

Treasurer; Eugene J. Hynes,.

J. L. Heymann

Instrumentation

Cor¬

Assistant Treasurer;

quick to

that in nounced today the election of
also earned following directors: Charles
$1.97 in the first quarter,
$2.50 in the second but then

were

note

the

1956 the company

came

the

year

the

$6.44

Jr.

law

(the

firm

of "Walker,

J. Wright, Tyler & Ward)'.

Eugene

business.

securities

Hynes,

Officers

Sr. is

ties

Mr. Hynes,

officer of Hynes

Jr.

was

strike, and for the

income

because

only

was

the

strike

losses. So either way the sec¬
ond half prospects were a
wide

question

open

steels,.

for

the

■-

■■■

■

The issue that

out of '

seems

style lately, after being in the
limelight" occasionally in pre¬
vious
years,
is Bath Iron/
Works,

"(unlike

Bath Iron is

REPORTS ON 1968

others,

many

that

company

able to show record post¬
revenues
for 1958 and

was
war

hold its

net

profit within eight

cents of the 1957 results. The

stock

can

there

are

volatile

less

than

since

419,000

outstanding. But the
a modest
price-earn¬
ings ratio, a seemingly secure
$3 dividend and although its
1959 profit isn't expected to
issue has

startlingly different than

the

$5 of last

year, it covers
comfortably.

the dividend

The

rate

average

operations of the industry

effort

being

was

devoted to the candidates for

arc

whole. Shipments of 3,249,000

as a

100% of

our

present

record year

this will

for such

ac¬

overall

communities where
and steel

our

year,

facilities

the Company announced

*•'

aje

located and to

are

products throughout the nation. The

users

program

in the

split in

hasn't

which

quarter century,

General Mills where the last

splitup

was more

than

dozen

and Hershey Choc¬
olate where the last split is

years ago,

12 years

old. were among
the
more
prominent candi¬
dates from
a
timing - stand¬
point.
now

color coating

Representing

and

new

entry

because

selection of this issue
of

services

the

with

modest

10-times

issue

many

important projects

increase of more than 20%

blast furnaces. The erection of a
slitting equipment and

new

a new

line at the Terre Haute, Indiana, plant of Stran-Steel

most important step in the Company's long-term

New

development, this new $300 million program, which extends over a

New expansion at
out

Weirton. The

viously only in alloy grades at greater cost. New types of zinc-coated
steels with different surface characteristics and heavier coatings on

calls for a further rounding
increasing its capacity for the

Under the

program,

a new

the Future"
to

will have

now,

in the Detroit

ments

installed. It will
new "Mill of

area

and at the

of the

new

with the launching of

taking

bold step that

expansive

elasticity of product specification both

for hot rolled coils of the new

are

strength

the

expansion program, we are

new

Company

vistas of building further
as future opportunities

developed.

same

finishing mills

near

Chicago. Require¬

1958:

SUMMARY

rn^lls will help even out fluctuations that may occur

New Northwestern Indiana

plant. The third section of the program

George M.

earnings

Net

of customers with increasing requirements in the
Chicago area which wc can serve better from a fully modern plant
there. Simultaneously we can release some of the existing capacity
at Weirton to serve the increasing demands of customers who are

earnings

Total

$640,967,342

35,827,414

45,518,884

...

per

4J0

6.13

112,223,804

198,589,929

22,298,906

share..

29,667,767

...

employment costs

Total dividends

...

pnid

A copy

operation.

1957

$539,957,294

Net

Midwest Steel division, in the Chicago area with an initial

better located for service from that

1958

;

Net soles

capacity in the order of 1,000,000 tons per year. National Steel has a

Chairman

into

whole

provide for future growth
time supply initially the needs

cal.lsJbr the construction of a sheet and tin plate plant, to be oper¬

our new

opens

us to

operations of the Detroit plant.

ated by our

clearly indicates the Company's

ability to sustain its record of substantial continuing growth. Aiid

powerful. With this

capacity will enable

the other. And steel buildings in factory-applied

National Steel's performance in 1958

quality and quantity that will be outstanding in the industry.

The additional

color—another National Steel first.

ingot capacity at

80-inch continuous hot strip milt will be

side than

one

production of electrolytic tin plate, and increasing the production of
cold rolled sheets and improving their processing.
New Detroit-area expansion.

provide strength well above the

highest levels of ordinary carbon steel—strength obtainable pre¬

program

of the Weirton division's facilities,

products. Among those introduced in 1958: The new GLX-W

line of columbium-trcatcd steels that

three-year period, covers these principal developments:

a permanent program on

corporation-wide basis.

some

activity

the

largely

parade,

was

our

Development Department to conduct

$300,000,000 EXPANSION

growing list
Standard

American

Weirton, resulting in

productive capacity of

building and installation of

new

of steel

is this:

equipment. Contributing significantly to the

galvanizing line at Weirton. And the establishment of a new Research

be the world's fastest and most

Coca-Cola,

our

1958 Annual Report

will be sent upon request.

Humphrey and President Thomas E.

"is in

Millsop have pointed out, the whole $300,000,000 expansion

earn¬

ings ratio that could show a
sharp improvement

in earn¬

ings both because of the busi¬
ness

generally

recovery

well

ing

starts.

the

additional

participation

also

has

the
good

in the growing

foreign markets through sub¬
sidiaries.

[The
article
time

views
do

not

coincide

expressed in this
necessarily at any
with

those

of the
presented
those of the author only.]

"Chronicle."

CORPORATION

NATIONAL STEEL

GRANT BUILDING

\NA™^AL/

PITTSBURGH, PA.

high rate of hous¬
benefit

They

are

Corporation. The completion and operation of a fourth continuous

and

growth of the Company in 1958,

Great Lakes and

well."

completed, including: New sinter plants in operation at both

were

Detroit will be increased from 3,700,000 to 4,200,000 tons per year,

tivity.

New construction, new

7,000,000 tons per year. And the near term outlook is promising.

the

would indicate that

policy of being outstandingly the best in the fields we

CONTINUED GROWTH IN 1958

increased capacity of

stock

splits, particularly since
big market play still per¬
sists in many issues where a
splitup is already assured. On
the basis of timing, the issues
that haven't split their shares
for some years and where the
market price is par or better
were
popular with researches.
The split already announced

our

in and know

compared with 3,961,000 tons in 1957. Current opera¬

long
considered major program of expansion that is of overriding im¬
portance to everyone directly associated with National Steel, to the

Split Interest Still High

moiW

are

an average

66% of capacity—about 5 percentage points above the

tons in 1958

tions

Company's 1958 operations achieving

Subsequent to the close of the

Far

line with

improvement in general business conditions in the last half of

1958 resulted in the

OWNING AND OPERATING—Great Lakes Steel
The Hanna Furnace

Corporation

•

Corporation

Hanna Iron Ore Company

•

National Steel Products Company

•

Stran-Steel Corporation

National Mines Corporation
•

Enamelstrip Corporation

•

Weirton Steel Company

Midwest Steel Corporation

Hemphill,

with

Noyes & Co.

and

Securi¬

Edward

Corporation.

Hynes,

are

President

Jr.,

and Florence

Secretary.

L. Menow,

■

The Commercial arid Financial Chronicle

Sound Economics for Developed
And Nonindustrialized Areas
By PER JACOBSSON*
Managing Director,

Mr. Jacobsson analyzes

When

back

the

still

1958

6.1%

rate

able to note a

But

welcome ab¬

sence

the

any

text.

field.
that

had

to
Per Jacobsson

difficul¬

"built,-

innovation

toward

face consider¬
able

would, I be¬

stabilizers"
and/Structural improvements in
such fields as mortgage finance,
but also the spirit of enterprise,
revealed particularly in the urge

countries have
not

recovery.

be useful in a wider con¬
First, and of basic impor¬

so-called

That does not
mean

rapid

this, as in many
Before the depres ¬

that without the

powerful to stage a
recovery.
This infusion of new
money
helped to keep up * con¬
sumer
income,
and
thus1 also
helped

the

maintain

level

imports at a time when U. S. ex¬

ports

were

declining.

The

sion

for

credits

banks

grant

foreign

readily, and for the

U. S. economy as a whole to
tain

its

for

taken

technical

progress,

period of

supported

main¬

foreign investments on a

wage

gregate demand, and would there¬
intensify rather than relieve
the difficulties. They also laid in¬

emphasis on the need for
expansion.
But this is not
to say that the necessity of hold¬
ing down costs was entirely ig¬

creased
credit

nored.'

Said

Keynes,
for
example, 'while
strongly Recommending
an
in¬
crease
in liquidity, at the same
stress

laid

time

the

need

avoid increasing money wages and

pro¬
of primary

Professor Alvin H.

countries,
including Bel¬
gium, Denmark, Germany, France,
the Netherlands and the United

the effects of

these

stantial

reductions

interest

Hansen, in his

"A Guide to Keynes," has
Keynes' view of what

bpok

explained
on

the

increase in costs

employment would be:

"Insofar
as

marginal

costs rise

output increases, some part of
increase in demand must be

dissipated in higher prices.
But
commodities
manent nature. To be able to ex¬ rates, making in that way an im¬
if, in addition, money wage rates
of lower
ert their full influence they must, portant contribution to a renewed also rise, employment suffers as
prices on their balance of pay¬
however,
be
supplemented ' in upturn of business activity.
a
result of the higher wages of
ments, and a number of indus¬
While in the United States knd the
each phase of the business cycle
already employed workers."
trialized countries have had, and
in some of the other industrialized
by
appropriate policies on the
This
important element of
still have, relatively high rates of
countries the recovery in produc¬
part of the authorities.
So far as
Keynes' theory is frequently, and
unemployment. But after allow¬
government action was concerned, tion has been substantial, many
unfortunately, forgotten.
ance has been made for these dif¬
perhaps the most important meas¬ of these countries have found that
ficulties, the main characteristics
If we turn again to the present
have

felt

of the

last

12 months have been

recession in the

the strengthening

States,

of monetary reserves,

particularly

the moves to
external convertibility by no less
than 14 European countries (which
have been followed by other coun¬
tries in
the sterling and franc
areas), and distinct signs of a re¬
newed expansion in world trade.
The industrialized countries have
again shown their willingness to
make capital available to under¬
developed countries; and decisions
have been taken to increase the
resources
of the Fund and the
Bank, and thus to strengthen the
in Western Europe,

placing of increased
orders for defense and other pur¬

ure

was

poses

1958.

the

the
In

spring and

summer
the credit field par¬

ticular importance attaches to the
expansion
of commercial
bank
credit following the relaxation of
reserve
requirements, certain
open
market purchases,
and a
lowering of interest rates.
The
total amount of credit extended

employment
sharply

has
not
production,

risen, as
with the

unemploy¬
has remained higher than in

result that the level of
ment

the recovery periods after

the two

previous recessions. This has been
due in part to a longer average
working week, but has also re¬
flected a marked increase in pro¬

and

duction

ample liquidity to sustain
expanding , production.
In the
United States, the money supply
rose by 3.8% in 1958; and the $6.8
billion
in
time
deposits which
over,

which has
were
created in the same year
greater production per
meant
an
addition
to
liquidity
worker
employed. In itself,
of
by the banking system as a whole
which is likely to make itself felt
rose by no less than $16.7 billion
course, increased productivity
is
also in 1959.
In Europe, too, the
during 1958. This increase had its a good thing, since it is an essen¬
increase in liquidity is exerting
main
counterparts in a rise of tial condition for economic growth
an
active influence.
If in these
$5.4 billion in currency and ;de- in any society, at any time.
But
circumstances costs and prices are
mand deposits (including govern¬ the question remains what meas¬
held down, there is a very good
ment and foreign deposits), an in¬
ures
should be taken to ensure
chance
that recovery
will con¬
crease of $6.8 billion in time de¬
that unemployed workers will be
tinue
and
unemployed workers
absorbed into useful production, a
ductivity

—

both

meant

financial structure.
posits with commercial banks, and
encouraging developments an outflow of
gold amounting to problem which is now debated in
which I have mentioned could not
$2.3 billion.
quite a number of countries.
have occurred without the adop¬
In assessing the importance of
tion of constructive
and deter¬
The Perfect Solution
this credit expansion, it is worth
mined policies, which clearly de¬
If one' examines the experience
noting that from the middle of
serve our attention.
1955 to the middle of 1957 there gained in past periods of business
A year ago, the recession in the
was
virtually no change in the fluctuation, it is clear that no
United States still appeared to be
money
supply
in
the
United single measure can ever suffice to
deepening, and fears were ex¬
production
and
absorb
States.
The prices of raw mate¬ expand
pressed that an intensification of
It is im¬
rials had been declining in spite unemployed workers.
the recession would create serious
of the boom, and surplus capacity portant to establish the conditions
difficulties all around the world.
had reappeared in several lines of for a proper balance in the cost,
Now we know, however, that al¬
price and demand structure so as
business
a combination of cir¬
ready in the course of the second
cumstances which seemed danger¬ to ensure that the goods and serv¬
quarter of 1958 the decline in eco¬
ously to resemble the situation in ices that may be produced will,
nomic activity was arrested, and
1927-28
immediately before the find adequate outlets in the mar¬
by the late summer and autumn, Great
This will always require a
Depression.
While it was kets.
signs of renewed recovery were
possible, as long as the boom con¬ combination of measures, namely,
evident.
In fact, the recession
tinued, to count upon an increase on the one hand, a sufficient in¬
has again been o£* relatively short
in the velocity of circulation, once crease in the liquidity of the econ¬
duration.
By the end of 1958 the
a
setback in business
occurred, omy—through appropriate credit,
Gross
National
Product of the
velocity would tend rather to de¬ fiscal and other policies—to sus¬
United States had recovered to an
cline; in such circumstances the tain purchasing power, and, on
annual rate of $453 billion (in real
stagnation in the money supply the other hand, the avoidance of
terms as high as the previous peak
increases in costs and prices that
could easily become a dangerously
in
the
third
quarter of 1957),
would be liable to impede an en¬
depressive influence.
consumer
buying
in
the third
largement of sales.
In expanding
quarter was 3.0% higher than in
Emphasizes Need for Credit
demand it
is therefore wise to
the corresponding quarter' of the
Expansion
concentrate
on
those methods
international

The

see that both pro¬
productivity is in¬
creasing in a number of countries.
In the credit field, there is, more¬

situation,

—

will
labor

absorbed

force

into

(although,

the
as

active

the

pockets of high unemploy¬
ment
may present special
diffi¬
culties).
Moreover, if the proper
restraint in- costs and
prices is

past,

achieved, there will be a real increa.e in the Gross National Prod¬
uct oma scale which will permit
such an increase in the standard
of
in

living as cannot
any other way.

costs

allowed

are

and

provides

This

convertibility.

added confirmation that this move
made from

strength and not

weakness.

Already in 1955,

from

preparation for such
Western

the
have

move,

countries

European

signed the European Mone¬

tary Agreement which was to re¬
the
European
Payments

place

Union
was

soon

cumstances

convertibility

But adverse cir¬

established.

the

following two

delayed the completion,'of
the plan.
By the end of 1958,
when the monetary reserves of so

years

of these countries had been
strengthened, they were able by
a remarkable concerted
action to

many

seize the opportunity to go

ahead.

By taking this step, they brought
closer the final move to full con¬

vertibility.
Fund's Purposes Are Being
Realized

the

Under

Monetary

European

Agreement, ad hoc credits may be
granted
were

which

credits

feature

countries,

individual

automatic

the

but

the

European

Payments Union have now virtu*

In this

ally disappeared.
the

new

the

policies

has

moved

and

practices of the International

Monetary
Fund's

closer

respect

arrangement

European
to

Fund.

resources

Access

the

is determined by
The Fund

the merits of each case.

thus

not

its

simply

additional

of credit for its members;

source

resources

stantial

are

available in sub¬

amounts only to member

governments which, in their con¬
tacts with the Fund, have shown
that

they have the intention and

maintain or restore
This principle has be¬
fully recognized in the re*
active years of Fund trans¬

capacity, to
balance.
come

cent

actions; and in this way the Fund
contributes

the

observance

monetary discipline,

which

is as
function¬

important for the proper
ing of an international monetary
system as for the maintenance or
restoration of monetary order in
each individual country.
A

number

have expressed concern at the

the

commentators

dis¬
less

automatic financing that had been

increase, the

established under the rules of the

to * expand

production
reduce.unemployment.

failure

even

after the establishment of external

be achiever
If, however,

danger is perhaps not so much of
renewed inflation
but rather of
a

continued

have

referred,

impact

the

the recovery from

United

Europe, which were made possible

by the increases in monetary re¬
serves, to which I have already

was

Really

Keynes

What

greatly to strengthening
the monetary reserves positions of
other
countries.
A
number
of
tributed

by Kingdom, have been able to ease
credit, in some cases with sub¬

ample funds for research.
These
are factors of a more or less per¬

ties; the

ducers

is, of course, difficult at pres¬

since conditions vary a great

sub¬

possible

interest rates made it

almost

was

fore

stantial easing of money and low¬
er

ent to lay down any

S. high level. Apart from their bene¬ to accept, at least temporarily,
ficial
effects internally, the U. S. somewhat lower real wages if a
economy — and this includes not
anti-recession policies also con¬ depresssion was to be overcome.
only the strength arising from the

nomic and fi¬

number

the

thought

other subjects.

tance, is the resilience of the U.

eco¬

nancial

brief analysis

lieve,

crisis

serious

led

unlikely

sufficiently

aware

which

expansion that occurred in
the United States, the budgetary
and other factors would have been

that has passed we are all
of continued, and even in¬ having thus fallen less than in
the periods of recovery after the
creased, tension in the field of
two previous recessions.
■; politics;
but
This is not the place to examine
at the
same
in any detail the circumstances
time
we
are
year

reductions, more and more econ¬ fore, have to differ somewhat on
omists came to believe that wage, ithe two sides of the Atlantic. ;./7.
cuts would cause a decline in ag¬
The easier credit conditions in

credit

the high
of the labor force,
stood

granted .that

policy.

the state of U.S.A. and the world econ¬

upon

nomic

general rule,
deal
reductions, if from country to country. In sev«?
applied drastically enough, could eral countries in Europe, for in-?
effectively overcome a depression stance, the recession began at,'a
chasing power. It was only natural and restore higher levels of em¬ somewhat later date, than in the
that those countries which were
ployment.
However,/influenced United States and Canada, and the
in a strong position, such as the
by the fact, that unemployment subsequent
developments .have
United States, should have to take remained distressingly high after also differed somewhat.
The tim¬
the
lead
in
any
expansionist 1929, in spite of repeated wage ing of many measures may, there¬

look

liquidity"), as in the form of cred¬ suring the maximum increase in purpose; moreover, when the re¬
provided by the private bank¬ production; :,; and 7 employment— cession is past and recovery Is
ing system which determine thje 'what the Germans call a "Men- under way, the generally accepted
amount of cash resources within',rgen-Konjunktur." principles /ofRa-/ compensatory
the economy.
By that time the
It is perhaps interesting to re¬ budget policy call, : if; not'for a
excess
liquidity inherited from call that the Great Depression was budget surplus, at least for, a bal*
the war had been worked off : in 'responsible for a" change in eco¬ anced budget.
.7 7 s/v t>7 • 7;^.
its

required through an expansion of
bank credit which could gradually
be transformed into effective pur¬

prescription for prosperity, and deals with nonindustrialized countries' problems. The world's international
banker favors bank credit expansion as a catalysis for anti¬
recession measures and insists, however, that authorities should
clearly demonstrate no inflation will be allowed. Pleased with
recent European developments and greatly improved interna¬
tional banking, which obviates Fund's automatic financing,
he notes that the IMF for the first time can carry out its
objectives.
The author recommends underdeveloped areas
pursue diversification, encourage saving and a sound currency.
offers

omy,

;

Thursday, April 23, 1959

quite a number of countries, and
there
were
good
grounds "for
thinking that a fresh impetus was

International Monetary Fund

Washington, D. C.

...

(1866)

appearance

European
has

been

matic
the

Payments Union. ,:It
that the auto¬

argued

methods

of financing had
obliging creditor

meritof

countries to make their contribu¬
Authorities Must Oppose Inflation
'.While

leading

industrial

coun¬

tion

meeting
deficits

ments

tries have not hesitated to expand

curred,

the credit volume, often on a sub¬

liable

balance of

when

pay¬

strain

oc¬

while the new system is
place an undue burden

stantial
scale, as part of their on countries whose reserves are
policies to overcome recession, falling. These fears, however, can
they have of course had to bear easily be exaggerated, as may be
in. mind that once the upward shown by an analysis of the rules
now
trend set in, a further increase in which
apply.
In .the first
liquidity might well give rise to place, it is important to recall that
fresh inflationary pressure. A fac¬ under the old gold standard coun¬
tor of some importance in many tries rarely had to meet a deficit
previous year, and hours worked
In the middle of 1957 conditions least likely to provoke an increase
their
balance
of
in industry had risen by
countries is a lingering inflation¬ in
payments
5.2% in
the United States, and in cer¬ in costs and prices.
Insofar as
from the trough of the recession,
wholly by drafts on their moner
ary sentiment, nourished by years
tain
other countries, were such that can be achieved, the subse¬
and were as high as the average
Equilibrating and
of rising prices; in such a situa¬ tary reserves.
that it could well be argued that quent recovery will not consist
other
banking
credits
for the first quarter of 1957. Un¬
usually
there
was
need
for
increased primarily of a higher value
of tion, there is the need for a clear
filled part of the gap.
demonstration by the authorities
However;
employment, however, at the end
liquidity — not so much in the output as the result of rising
in 1950, when the European Pay*
that no further inflation will be
form of reserves held by central prices, but rather of a steady in¬
•From an address by Mr. Per Jacobsallowed. From this point of view, ments Union was established, the
son before the Economic and Social Coun¬
banks or governments
(what is crease in the volume of sales at the
attainment
of
a
balanced international banking system had
cil of the United Nations, Mexico City,
generally
called
"international relatively stable prices, thus en-r budget can serve a very useful not yet begun again to function
April 9, 1959.
*
.

Number 5840

Volume 169

The Commercial and Financial Chronicle

...

to fluctuations

adequately. In those circumstances
it was natural that a certain de¬

between high and

(1867)

stances
with
which
they were
faced, and thus relieved the situa¬

low demand."

official financing should
Casting our minds back to what tion in other countries. This was
be made readily available to meet
actually happened in 1958, it can— anf example of the kind of com¬
part of the drain on individual not be denied that both the United plementary policy,
involving
of

gree

countries'
have

that

passed,

now

States

however,

and

took

and

case

Germany, two

measures

coun¬

opposite nature in

countries,
which
is
strong reserve position; individual
steps appropriate in each often necessary to ensure general¬

tries in

relations have been rerestrictions have been

banking
knit,

In the years

reserves.

the

particular

circum¬

ly balanced conditions.

Problems

Nonindustrialized

Countries
In

years the distinction
industrialized and non-

industrialized

countries

time of the boom

prices: after Ko¬
prices of most primary
products have fallen, with the re¬
rea,

recent

between

has

as¬

sumed increased significance as a
result of the differential move¬
ments of prices.
many

reduced, if not fully abolished, so

Contrary to what
people had expected, at the

the

sult that the

improved

terms of trade have

for

the

industrialized

countries, and deteriorated for the
primary producers.

Continued

To
on

that the orderly methods of mar¬
ket financing
can
now
resume

their proper role.

respects

It is in many
appropriate to rely

the funds available in the

ket

than

which

official

usually

mar¬

financing,

involves

the

em¬

ployment of central bank credit
which

ought not to be the first
called upon for equilibrating pur¬
poses;
central banks should re¬
main the lenders of last resort.

Responsibilities Are

Sharpened

^ Secondly, it hardly needs to be
mentioned

the

that

International

Monetary Fund and the European
Monetary Agreement
are
both
institutions established precisely
for

the

assisting

purpose

the

central banks of countries in case
of need.

The practice of the Fund
is that in the case of a member's
request to draw an amount equiv-*
alent to' its own gold subscrip¬

tion, normally 25%
the member

of its quota,

the

has

overwhelm¬

ing benefit of the doubt; for the
next 25%, a country
requesting
f Assistance must show that it is
'*

making reasonable efforts to solve
its problems.
Requests for draw¬
ings beyond these limits require
substantial

justification,

namely,

that the drawing must be in sup¬

port
to

sound program likely
enduring stability of the
at realistic rates of ex¬

ensure

currency

change.
\ A

;

making use of the
Fund's
resources,
in accordance
with these principles, will invar¬
iably draw the currency of
a
country in a strong position. That

country

the contribution which creditor

countries make via the Fund.

But

the deficit countries should also
make their contribution, and this
they do by correcting maladjust¬

ments in their economies by their

W. R. Grace & Co.

own
measures,
often helped by
financial and technical assistance

from

the

ance

Fund.

responsibilities

established

the

thus

effort

industry in 1952, earnings from

Underdeveloped Countries'
Obligations

than half of the total

position nor¬
mally have to take the lead in
initiating financial and economic
policies compatible with the main-'
tenance
and
expansion
of
the
Volume of world trade.
In this

Annual

passage

should

For

1958, transmitted to the Board of
Governors on July 25,
1958, in
with

countries
ments
run

balance

date this year

free

account

copy

of the

new

Company's operations in 1958, write today

Annual Report.

pay¬

policies

such

1958

high levels, thus ensuring

Sales and

world trade.

fluctuations

cyclical

excessive

Highlights
of the Year's

Operations
Year Ended

they

December 31, 1958

own

—

interest

the

task

undertake

should

rest

and

which

both

Will, however, be

the

Net

;

rate

—

Working Capital

Net Fixed Assets

Stockholders'

$459,727,553
$ 15,459,247
$

3.31

•

$
$

8.29
•

928,664

$ 10,540,586
$
2.40

$120,631,720

2.7 to 1

2.5

$221,931,925

Equity

Common Share.

$207,546,424

47.44
28,052

Number of

interest

38,400

per

Employees

47.70

24,539
42,100

There

better pros¬

their ef¬

forts if the less developed
are

Common Dividends Paid.

Number of Common Stockholders

their

the world.

pect for the success of

tries

Cash flow per
Preferred Dividends Paid

$434,234,391
$ 10,039,855
$
2.07
$
7.51
$
928,664
$
9,692,815
$
2.20
$130,295,418

Current Ratio

primarily for the large industrial
countries

of Common Stock
share

Per Share—at

responsibility

Per Share

The prevention and

correction

expansion

the

Operating Revenues

Net Income After Taxes

buoyant market for imports and

contributing

1957

time,

strong position have

a
special responsibility to main¬
tain internal demand and produc¬

tion

earnings

confirm this feeling of optimism.

of the

great risks in applying expan¬

sionary

favorable than

difficulties would certainly

countries in

detailed

for your

the midst of the recession: "While

improve in 1959.

Results

to more

for most of the Company's businesses in the United

the United States and in Latin America indicate that Grace's

for

Report

Company entered the chemical

chemical divisions amounted

year ago. Stronger demand
Company's ^chemical products and the improved business climate both

for the

connection I want to draw atten¬
Fund's

our

profits.

States and in Latin America is

balance of payments

tion to the following

net

For 1959 the
prospect

Thirdly, it is now generally rec¬
ognized that countries in a strong

the

share of $2.07 for 1958, compared

chemical business. For the first time since the

equilibrium in the interna¬
tional balance of payments.
;.

per

earnings of the Company's growing

re¬

store

reported net earnings

$3.31 for 1957. Lower profits from our operations in Latin America and from
Grace Line were partially offset by
higher
to

bal¬

certain

W. R.

coun¬

& CO.

fully aware that stability

cannot be assured to them

merely

Executive

Offices: 7 Hanover Square, New York 5

by the efforts of others, and that

t|>ey cannot be spared the obliga¬
tion

to adapt their own

economies

CHEMICALS

•

LATIN- AMERICAN ENTERPRISES

OCEAN TRANSPORTATION

some ex-

page

Chronicle

The Commercial and Financial
20

institutions.

thrift

Savings Banks in 1959 and

By I)R. GROVER W. ENS LEY*

Vice-President, National Association of Mutual

Executive

Savings Banks, New York City
The attractiveness of U. S.

Government bonds to supplement

savings banks' continued large mortgage
first year

some

economist charts

acquisitions, for the

tive

time, is pointed out by Dr. Ensley. The
generally favorable year for the economy

gloss

over,

however,

1960 is

tion's

of the important problems ahead
within our grasp before
many months old.

long-

capital

term

what

needs,

to be the

seem

immediate

for

prospects

For the

1959?

economy

moderate

and
price
The

relative

stability.

Grover

Lnsiey

rate of expan¬

new mortgage
investments will be ample. These

for

probably not be as rapid opportunities will be affected by
im¬ the course of Federal housing leg¬
mediate stimuli from changes in islation now pending, one impor¬
business
inventory
policies,
in tant aspect of which is the pro¬
government expenditures, and in posed increase in VA mortgage
home
building, will not be as interest rates from the submarket
strong. However, anticipated in¬ 4%% to the more realistic 5*4%.
It is important.to note in passing,
creases in consumer durable goods
expenditures, in total construction however, that not until a greater
activity, and in business capital degree of flexibility is permitted
outlays, are likely to keep the in these interest rates, will the
economy moving steadily, if not market for VA mortgages be rid
of its marked unsettling fluctua¬
spectacularly, upward.

sion will

in the 1958 upturn because

tions.

these

pectations

ex¬

well

may

raise

the

nation's

total

terms to

over

dollar

output

$480 billion by the
physical out¬

end of 1959 and the

put from factories and mines to
150% of the 1947-49 average,

over

compared with $453 billion and
142% respectively, at the end of
1958. Thus the $500 billion econ¬

which not

omy,

considered to be

within

long ago was

so
a

distant dream,

and will
probably be achieved before 1960
is many months old.
is

now

Quite

our

clearly,

grasp

this

general

economic setting, the banking sys¬
tem will be called upon to pro¬
vide

increasing

funds

for loans

The flow of
ever,
as

may

and

amount

•

investments.

liquid savings, how¬

be lower than in 1958
step up their rate
As long as expecta¬

individuals

of spending.

tions

inflation

not

become

the net flow of in¬
savings into financial

widespread,
dividuals'

likely to be higher
other
preceding
Competition for savings

most

the financial setting of 1959,

the market for U. S. Government

securities

will

p r o

b 1

watched carefully by mutual sav¬

ings bankers

investor groups.

well as by other
The Treasury in

recent months has shown increas¬

its willingness

ingly

the

basis

rate

compete

and

terms

with other capital market securi¬
ties.
A large volume of new of¬

ferings is likely during 1959 and
rcfundings
will
also
be
large.
the supply of corporate

With

of¬
fering expected to be reduced in
1959,
savings
banks may
find
Treasury securities more attrac¬
,

than

tive

other

recent

years

supplement
to
continued
large mortgage acquisitions. 1958
was
the first year since 1949 in
which
life
insurance
companies
were net purchasers of U. S. Gov¬
ernment securities; 1959 may be
the first such year for mutual
savings banks.

The

institutions is
than

general level of long-term

interest rates and yields has risen

since mid-1958 and
likely to decline in the
institutions will undoubtedly con¬ business expansion of 1959. In this
setting, savings bank earnings on
tinue active.
capital market investments should
For mutual savings banks spe¬
average somewhat higher than in
cializing in capital market in¬
1958, permitting continuation of
vestments, opportunities for the
the traditional savings bank pol¬
favorable placement of funds will
of maintaining
substantial
be ample. Corporate bond yields icy
surplus for the protection of de¬
will
be
attractive
relative
to
positors.
Higher earnings may
yields on mortgages and govern¬
ment securities, but the likelihood permit, also, the provision of ad¬
ditional services.
is that corporate offerings will
All things considered,
1959
be lower in 1959 than in 1958 as
promises to be a good year for
a result of sharply rising profits
savings banking. It will be a year
and continued large depreciation
allowances.
In addition to
the in which savings bankers will be

years.

banks and other financial

among

substantially
is

not

generation of a large volume of
internal
funds, the
expectation
that capital expenditures will in¬
crease
slowly through most of
talk by Dr. Ensley before the
Annual Pacific Northwest Confer¬

♦From

20th
ence

on.

ington,

Banking, State College of Wash¬
Pullman, Washington, April 10,

1959.

that

able to accommodate demands for

without sacrificing quality
yield. Deposit growth, asset
quality, and earning power will
be well maintained.
Experience
will vary, of course, among the
areas in which savings banks are
located, because of the funda¬
mentally local orientation of these

funds

delicate

There

and capital

period of time is not likely to be readily dispensed >

the strong upturn in the econ¬

are

operation is out of the way.

evident

changes

Financing Awaited
the

opinions

demand

•

^
•:

No Time Now

for

D^rrExt^Ton

However, it appears as though the Treasury this tin,le is in "
about as poor a spot as it has ever been to attempt an .extension
in the Government debt by offering to holders of the maturing
.

It is evident that the pressure con¬
tinues to be very heavy on all maturities of Government hut the
more distant issues have only a very rapidly decreasing circle of
friends. The coupon obligations that were used in the most recent
issues, a long-term obligation.

growth appropriate for
relatively full employment
price stability is a
challenge around which mutual
savings bankers and commercial

operation of ti:e Treasury, that is the 4s of 1963 and the 4s of
1969, have both gone to sizable discounts, although fairly im¬
pressive oversubscriptions were noted at the time of the offering.
This, along with the yields that are available now in the other
marketable Government obligations, seem to be positive proof

well unite.

can

that the cautious

to be refunded.

are

relative

bankers

means

thing is always presented when obligations are coming due and

both
and

This

likely be making announcements;within the. next week or so as ;
to how the refunding of the maturing May obligations will be
done. To be sure, the Treasury would like td,.extend the maturity *
of the Government debt and a real opportunity for doing such a *

rate

defensive

the

psychology that surrounds the money market and the capital mar¬
ket, since the forces operating in these markets continue to be on
the unfavorable side.
In the first place the Treasury will most

economic

permit

necessary

Haas, Raymond Go.

that the Treasury is not in a position to

sell either

intermediate

long-term obligation at this time unless they attach to these
issues a rate that would be about the maximum the Treasury

;

Formed in New York

could

Haas, Raymond & Co. has been

for

pay

bond maturity.

formed with offices at 120 Liberty

Near-Term Issue

Street, New York City, to conduct
a general securities business.
The
firm

will
a

invest¬

advisory

service
the

Traders
search

Re¬
Sur¬

rity

Haas

Lloyd

Scott
and

thereto

research

"in

was

for

Forbes

charge of
Magazine's

past he

was

service.

situation

Mitchell, Hutchins
associated

become

Hutchins
&
La Salle Street,
New

Stock

York

been

business

will

for

many

are

August, 1961, and the 4s due August, 1.962, both
100 at the option of the owner, be¬

redeemable at

LAWRENCE, Kan.

—

Dunham, Marsh is
engaging in

investment

years,

Copley Adds to Staff

Robert K.

;

Special to The Financial Chuonicle)

COLORADO SPRINGS, Colo.—

securities

business from offices at 1630 West
22nd Terrace under the firm name

was

Archie
to

Investment Co.

Marsh

the

pany,

Craig has been added

staff

of Copley and Com¬
Independence Building.

With Evans MacCormack

With J. I. Ferrell
With Cantor, Fitzgerald
BEVERLY

Berin

GRAND

Calif.—Alis Forrest

HILLS,

Boris

and

Loeb

have

be¬

staff

affiliated with

gerald

Co.,

Cantor, Fitz¬
Inc., 232 North

Colo. —
Carhartt has joined the

Jane

•?

" "Y

■

Ferrell

Invest¬

■'* t

Crowell,Weedon

(Special to The Financial Chronicle)

With Patrick Clements
(Special to The Financial Chronicle)

HOLLYWOOD, Calif.—Ralph E.
has joined
the staff of

LOS ANGELES,

Calif—William
Richard L. Goforth have become affiliated with
H.

G715
was

Engquist

Clements

Associates,

Hollywood Boulevard.
He
formerly with Federal Securi¬
ties Corp.

with

453

Co.,

members
Stock

was

E. F. Hutton &

previously
Company.

Calif.—J. Glen

Phillip B. Cross and
Welch have become af¬

filiated

Evans

South

the

MacCormack

Spring Street,
Pacific

Exchange. All

ly with Hopkins,

Engquist and

Crowell, Weedon & Co., 650 South
Spring Street, members of the
Pacific Coast Stock Exchange. Mr.

Lidster

Patrick

Brubaker,
James H.

Two With
,

LOS ANGELES,

JUNCTION,

ments, 1129 Colorado Avenue.

Canon Drive.
#*•

(Special to The Financial Chronicle)

•Special to The Financial Chronicle)

(Special to The Financial Chronicle)

for

date the deadline

great deal of these two securities will be tendered for

Forms Marsh In v. Co.

Midwest

Mr.
the

due

•

;

come

special Treasury bills in the

This will add to the refunding woes of the Treasury.

formerly with Talcott, McAlpin &
Co.

time

with

Co.,
231
members

and

Exchanges.

has

who

slight bit

payment by the time when the first option call date rolls around.

CHICAGO, 111.—Claire A. Dun¬

the

filing of the notice for cash payment on the 4s of 1961.

the

cate that

(Special to The Financial Chronicle)

South

maturity

They would become payable on August 1. The 4s of 1962 can be
redeemed next February
1 on advance notice of the holders.
The levels at which these two issues are selling appears to indi¬

G. A. Dunham With

issue with

eligible for redemption, with the May

come

for

Mitchell,

which

& Co. and J. R. Williston & Beane.

has

Optional Dates Approaching
The

the
with Eastman, Dillon

special

ham

rate.

coupon

Along with this special Treasury bill idea is the
belief that in spite of what has happened to the Government bond
market... a token offer will be made of Government bonds, so that
at least; something can be said and will be in the records about
the extending of the maturity of the Government debt

Mont¬

prior

the

one-year range.

analyst

Co.,

opinions that

reliance this

main

secu¬

gomery,

along with

used

longer than a certificate with a 4% coupon rate is in the cards,
there are those money market specialists who believe that the

principal of
the new firm,
was
formerly

with

out

In spite of

Lloyd Haas,
a

senior

will

middle maturity as well as a bond evidently
by the price action of the money market and capital
markets themselves, it seems as though a near-term issue will be
used by the T reasury in its impending operation.
This naturally
brings up the question as to how short an issue or issues the
Treasury will use in the May venture.
?
ruled

vey.

that

Therefore, with

under

name

securities

the

Expected

about the ability of the Treasury to
they come due, but there is about the maturity

question

refund its issues

spe¬

cial

There

also

ment

Attractiveness of U. S. Bonds

realization

The

render

$500 Billion Economy in 1960

Sees

ment

rush on the part of investors

Details of Treasury

loose

balance

opportunities

after the Treasury

renewed, self-defeating in¬
flationary pressures. The achieve¬

for

there is

ones,

positions in these issues.

haps, is whether employment can
be
maximized
without
setting

existing properties are, also,
expected to be active. As a result,

year
will be one of

growth

outstanding at the end
The volume of home

building
and
of nonresidential
construction is expected to con¬
tinue large in 1959, and markets

the

that

1958.

been

will most likely result in some action by the Federal Reserve '
Board in the near future. A rise in tne discount rate, indicating a
continuation of the restrictive money policy, is not expected until L-

consequence

new

The booming stcck market, and

possible labor-management dis¬
putes in steel and other basic
of corporate
industries; by continued Treasury
financial
developments,
savings
debt management difficulties and
banks are likely to continue fa¬
the
possibility of further large
vorably inclined towards mort¬ Federal
deficits; by a worsening
gage investments in 1959. In any
international competitive position,
event, a continued large flow of and
by continued large-scale un¬
mortgage funds .from
savings
employment in many industrial
banks seems assured in the early
areas.
"f..v
;
-*v- :
;
months
of
1959, reflecting - the
The overriding
problem, per¬
large volume of mortgage com¬
As

has

omy,

moderate.

ent

ag re em

suggests that corporate de¬
mands for external funds will be

issues

with.

important prob¬
lems ahead.
Indeed, several po¬
tential problem
areas
are
sug¬
gested
by
uncomfortably
high
levels of common stock prices; by
are

for Treasury

and uncertain tone which has characterized the money

generally

that there

195.9

mitments

whole there is

either old

markets for

economy

Against the background of the
historic
and continuing role of
mutual savings banks to encour¬
age thrift and provide financing
for the na¬

market

The

quite some time now because there is the fear that the coming
ref'undings and new money operations will bring into the market
obligations that will have a depressing effect on the outstanding
issues. Since there will be no shortage of Government securities,

favorable out¬
look
for
the
economy
and for
banking in 1959 should not imply

some

$500 billion

Governments

for

to build

The

Reporter

By JOHN T. CHIPPENDALE, JR.

management

bank

savings

Our

Charts Several Problems Ahead

banking, and expects large volume of home building
and non-residential construction to continue in 1959. He does
and foresees

policy.

and for

not

Increasingly,

savings banks are; in¬
fluenced
by
national^ economic
and
legislative developments as
investment activity in the nation's
capital markets expands, including
growing out - of - state mortgage
programs.
Accordingly, alertness
to the impact of proposed Federal
legislation
and
of
prospective
economic events will continue to
be an essential element of effec¬
however,

Attractiveness of U. S. Bonds

.Thursday, April 23, 1959

(1868)

were

Coast

former¬

Harbach &

Co.

A. T. Brod Office
WASHINGTON, D. C.
Brod

office

with N.\

Co.

W.,

resident

has opened

931

—

Fifteenth

with. Martin
partner.

branch

Street,
Lesser as

Volume 189

Number 5840

The Commercial and Financial Chronicle

...

ment

How to Solve

should

prevent

encouraged

monopolies

eign imports and "the
be

unneces¬

Unemployment
By ROGER

Four

ways

ment

are

\V. BABSON

employ¬

increase

suggested by the dean

of American financial commenta¬

consolidations.
When em¬
ployers combine, they usually do
so either to raise prices or to re¬
duce manufacturing costs.
As a
result
certain
wageworkers are
thrown out of work. Might it not

after

tors

for

outlining four

reasons

unemployment which do not
onus on labor.

place the entire
Mr.

Babson

proposes

secret

fair

groups,

consolidations.

Readers

disturbed

must

the

contrary reports from Wash¬
ington
about
the
employment
situation. One report claims there
more

are

the

them

well

To reduce

among

un¬

younger

should

from

work

active

Pruitt and David J. Schwartz are

John E.

now

with

Lucas

Norman

are

now

affiliated

C.' Roberts

Com¬

Atlanta,

the

New

Mr.

son

ago

with First Southern Corpora¬

These

economic

will

wars

settled fairly only

when all groups
"give and take."

was
formerly with
Dempsey-Tegeler & Co.; Mr. Wil¬

Co.,

First

willing to
Employers, wageworkers, and
must all be willing to

are

abide
than

by the Golden Rule rather

strikes

force;

use

legalized

only

are

wars.

with Evans MacCormack

was

and

Mr.

Lucas

California

was

with

Company.

fices at 99 Wall Street, N. Y. City.

Caldwell Co. Opens
Caldwell
a

Company is

securities

engaging

business

from

of¬

May, Borg Partner

(Special to The Financial Chronicle)

SAN DIEGO,

Calif. — Leonard
K. Lamdan, Reginald W. Hughes
and Joseph E. Stephenson have
Co.,
155
Sansome
Street.
Mr.
Hughes and Mr. Stephenson were
formerly
Co.

with

Wulff-Hansen

David H. Cohen became
ner

haps

bers

change,
was

ttoe American
on

April

formerly

says

there

are

ployed than

Probably both
of
these
claims

enough

Metal, wood,

even

the atom...

are

correct.

Babson

Roger W.

easily
possi¬
ble, owing to

the natural growth in population
and to other factors which I will
enumerate:
Re&so-ns

Four

not

ago.

year

now

nature

unem¬

Unemployment

for

Manufacturers, retailers,
and labor are pricing themselves
out of business.
Most investors

natural

mind's

idle

eye,

resource

man-until

serves

imagination, the

finds the way to use it. Natural gas, for one, lay

under the

earth...

was

flared

waste... before the

pipeline made

its heat and energy available to millions.

Now

oil—through

(1)

all the blame on labor; but
each group wants more and tries
to raise prices or wages to secure
put

additional

Finally, the
goods, which

money.

public

buys

results

fewer

manufacturers laying off
a "merry-go-round,"

clerks,

chains

come

new

...

all

natural

even

petrochemistry

— are

benefits. Endless

products... and many more
springing from that greatest

off

laying

retailers

and

gas

being' made to yield

resource

of all

—

mindpower.

workers. It is

with all groups to blame.

Government imposes taxes
social security, old

(2)
for

defense,

pensions,

age,

foreign

and

farm

aid, roadbuilding, etc. These taxes
make

mad

everyone

and

un¬

consciously take it out on labor by
reducing the number of our em¬

ployees.
imports

Foreign

(3)

are

con¬

stantly increasing. Low wages in
Germany, Italy, Japan, and other
countries enable these nations to
export to us all kinds of manufac¬
tured
products
at
low
prices
which

our

manufacturers

own

cannot meet. This is

foreign

import

duties.

these

raise

turn

in your

Yet

for

cease

Russia.

not

dare

these

fear

to be

the

pay

duties

nations will
and

after the

even

manufacturers

our

allies

Every

store

city is carrying

some

im¬

When
you
buy
you
are
putting
good
American wage workers out of a
job. Yet we must buy these goods

ported
them,

goods.

Russia

and

will

will lose

get the business
valuable friend.

Many manufacturers are
building plants abroad to

(4)
either
hire

very

low

efficient
wages

automation.
"self-service"

workers at
adopting

are

Retailers

install

build

great

and

supermarkets. These changes
throw more wageworkers out of
employment.
Four

Ways to Increase

Employment

(1)

From

I believe in the American

wageworker.

fair

and

in¬

natural gas and

oil... heat, power,

petrochemicals that mean ever wider service to man.

telligent. Unfortunately, however,
his

union

hold

his

leader

knows

that

job, at $20,000 per f
year, he must get wage increases
own

for his members.

This he does by

forcing members to

agree to his
employees by the use
standing votes. The most help¬
ful thing Congress could do for

threats to
of

wageworkers and consumers
would
be
to
legislate that all
strike

votes

shall

secret

LEADING

PROVIDER

PRODUCTS

ENERGY-NATURAL GAS, OIL AND THEIR

HOUSTON,

DIVISIONS: Tennessee Gas

Pipeline Company • Tennessee Gas and Oil Company ' Bay Petroleum

SUBSIDIARIES: Midwestern Gas Transmission

ballot.

COMPANY

TRANSMISSION

TENNESSEE

Company

TEXAS

Company

Tennessee Life Insurance Company • AFFILIATE:

Petro-Tex Chemical Corp.

(2)

The U.

Justice

Depart¬

■

Stock

Mr.

Ex¬

Cohen

partner in Paster-

year;

report

part¬

Broadway, New York City, mem¬

.ever —
another

while

May, Borg & Company, 61

nack & Co.

OMAHA, Neb.—Rodlin E. Bunney has been added to the staff of
Francis I. du Pont & Co., Securi¬
ties Building.

Birr Adds Three to Staff

been added to the staff of Birr &

reaching 65 years of age.
The
simplest method of decreasing un¬
employment would be to reduce
the legal work week to 35 hours;

F. I. du Pont Adds
(Special to The Financial Chronicle)

or per¬

—

Eugene

Desbrow

in "cold wars" with other nations.

—

tion, 70 Fairlie Street, n. W.

625 Broadway, members of
York Stock Exchange.

pany,

Ga.

than there
were,

DIEGO, Calif. — John D.
Desbrow, James H. Wilson and

college.
(4) Let me close by saying that
basic difficulty is that both
employers and wageworkers are

when

(Special to The Financial Chronicle)

SAN

consumers

retire

Two With First Southern

(Special to The Financial Chronicle;

the

'-»ut this would result in more for¬

em¬

today

ployed

Three With N. C. Roberts
..

of¬

sent to

period of
advance—
before prices are raised or any
employees discharged? Surely the
stockholders should be willing to
make
some
temporary sacrifice
when they vote for these consoli¬

(3) Both aging employers and
wageworkers should take advan¬
tage of Social Security and gladly

unnecessary

.would

the older

corporations

employment

dations.

prevention of monopolies by

include

the wageworkers.

require a
time—agreed upon in

and

cure

than the disease." Please

that

ficers

strike vote by the rank and file

worse

note

sary

(1869)

Chronicle

The Commercial and Financial
-

that

prompts our United Nations'
measures he advises

essential

should

taining

;

standards, for with weapons in profusion we could
still lose the contest.
This involves alleviating economic

weakness and discontent in many countries

for non-contradic-

of self-preservation and love of our fellow man;
thinking in terms of generations and not in terms of fiscal
years or years between elections; fostering growing governmentbusiness partnership aimed at promoting economic development abroad; and promoting economic strength and practicing
"equal rights for all" at home.

Every day brings home the fact
the greatest dangers which
confront are attributable to

policies

have

Soviet

the

Union.

yet
to
anything

see

indi-

which

that

cates
their

unre¬

mitting
range

long
aim is

the

over

last

officials
brought

Soviet

succession

years

to
Cabot

Henry

and

Lodge

sophis¬
in

They

methods.

their

diplomacy,

fail

not

must

f ;

ing given to a more active

to underestimate their abilities.

vince

con¬

military

pre¬

the

Advocates Generation-Long

Planning
But for the time

being,

must

take note of the fact that the So¬

Differences

viet Union is

and

Thoughts

huge

are

between

gaps

thinking and theirs.

Union

.system
the 9

we must learn to live
the present world disorder
protractedly. We must not think

with

reorganize
the
voting
that instead of having

votes

out

which

terms of fiscal years or

they

year

hold, there would be two
must
blocs of equal size: The Soviet

now

Union

and

satellites

its

hand; and

and

satellites

our

course,

have

not want—on

complete

the

countries

the

what

they

not

thing to them

all

world

the

mental
the

they do to

genera¬

for

thumb

dealing

not

take

face

value; to
method; to be firm
on
our
basic
goals: and to be
strong—in many different ways.

euphonious

mean

terms

say

be flexible in

this

the

given the
label of "parity."
Words

with

other.

of two

elections;

year

Soviets

and

got

have

rule

which,

—

not

think

One

States

disfranchisement

small

they

the United

four

tions.

the

is used.

power

Certainly

Nations, for example, they

want

how this

1956—of

the

growing in military

and economic potency.
We had a
recent example —in Hungary in

Words

There

the

believe

not

claptrap about capitalist
imperialism. So in 25 .years there
may be a different picture. I

be.

one

musty

they are not stupid and
they are not lazy. We must, there¬
fore, be more intelligent and be
absolutely clear in our minds as
to what we stand for, what we
affirmatively want the world to
not soft,

our

who

—and

that Soviet officials are

course

same

interests
survival

have

phie not

"people's

sheer,

military

This is utterly basic.

non-

communists.

ele¬

must

strength.

We must be

out nuclear

When
they
say
democracy," for exam¬
ple, they mean dictatorship over
all the people in a country by a
very small hand-picked group of
♦An

address

Bond Club

New

Mr. Lodge before the
York, New York City,

only to Heal with an allattack, for which we

to the Air Force; we must
also be ready for limited military
activities of a kind well exempli¬

look

fied by the fleets which we main¬
tain in the Mediterranean and

the

April 16, 1959.

willing to stand up for its own appropriations for economic pro¬
rights.
We
want " no /satellites. grams abroad are as vital to our
national existence as the money
Obviously, a country in which the
which we appropriate.for the dip¬
overwhelming
majority
of
the
lomatic service or for our military
population is half starved and in
services.
Thus self-preservation
bad health, cannot stand up for it¬
,

self

for anything

Western

Pacific

and

FOR SALE

■

COMMERCIAL & FINANCIAL

CHRONICLES

Excellent Condition—All Canvas Bound

our

to —1945

tries get
asset to

Edwin L.

—

REctor 2-9570

Beck, c/o Chronicle, 25 Park PL, N. Y. 7

munist

started, it will be
in the long

theorists'

Nor is that all.

great

behold

who

to win

are

the'Struggle for the minds of

The

run.

of these
underdeveloped countries as tradr

potentialities

men

—particularly in Africa and Asia

many

must show at home that

—we

practice

what

preach about
ing partners are enormous.
.,v
Fourthly, there is the converse 7 equal rights for all, and that what
we
do is' animated
by spiritual
proposition, which is that if we,
values.
Six years of association
don't help them and they fall into,
with the representatives of Africa
the hands of the Soviet Union, we
have

ourselves

done

bad

very

think

should

about the

too

tactlessness of those who

that

proclaim

economic

our

with which to
When

carry

tool
fight the cold war!
program

those

will

only

publicly

who

this

use

to look as though we
helping them cold-blood¬

purpose

were

edly?

t]\<^standin&jof our country in
";7,v ,/
'"'v.
-4i.'

the world.
In

•

proves

country our
made a long-term in¬
in freedom.
It was. a

ancestors
vestment

calculated risk that ordinary peo¬

ple had enough virtue in them to
a free society possible. That

make

has

investment

and

—

again

our

history

they

think

■they

e n

against the

much

tens

millions

hundreds
inspired to de-J

to our shores, and

came

that

divi¬

two centuries—'

millions

were

their own free institutions
countries./
7 • -)J
Now we have come to a period

velop

in other

whole

the

when
we

idea of

freedom

it in the West is
challenged by com¬

know

and

munism.

who are^

peoples

Many

beginning to seek their own
destiny in the world are waiting
to see, in this global contest, which
system will do more for them.
* j;
We need guided missiles, to be
sure, and the other weapons with¬
out which we cannot survive. But
we can have weapons in profusion
just

need

and still lose the contest. We

all of

our

generosity, our warm¬

pi¬
ideas,'

heartedness, our old-fashioned

neighborliness,

oneer

our

Lincoln
called "the better angels of our
nature.". For these are the Ameri¬
canisms" which can win over the
ideals—all

cur

what

world.

;,v7

Soviet

these

along

Municipal Bond Women
To Hold Outing
'

"The United

States has

strength; but then
viet Union.

has the So¬

The United States has

will

York

New

Women's

Bond

Municipal
of

annual outing of the

ninth

The

military

economic strength; but then so has
the Soviet Union. In fact, the ma¬

Club

held

Seawane Harbor Club

in Hewlett,

N. Y., on Friday, June 26. Virginia
Soviet Ramsdell of Guaranty Trust Com¬
Union has made in the last ten pany of New York is Chairman of
the Outing Committee.
/'
years is more impressive to us in
Africa and, Asia than that which

terial

has

again—that

and

system in history, would have
coilapsed long ago if it were not
operated by a people with a hu¬
mane
conscience, a people who

Lincoln said, "that all

should have

equal chance."

which the

progress

economic

might but also

conscience. If

respect and if

lose

soon

not

how

fail in this

wealth,

that

wealth

Union

besides.

should

clearly

about

it.

has

and

trying to suggest here
we

think

tackle

That

this

the

last

selves could do.

What then is the

difference?"

Africa

a s

way:

man

answers

it this

"The big difference between

United

Union

has

the

Asia.

And I believe he

States and

that

the

that

proven

well-being

can

out

violence,

and

without

the

that

United

• ?

be improved with¬

Africa
—

and

its

Asia

—

Commerce

Building.

Joins Buck Staff
(Special to The Financial Chronicle)
—
Phiiip F,has joined-the staff
of Richard J. Buck & Co., Statler
Office Building. He was formerly
with Schirmer, Atherton & Co. • \
-

BOSTON, Mass.

Mackey,

Jr.

im-

pressiveness is enhanced when he
compares our way with that of
the unspeakable brutalizing of Ti¬
bet

Bank

Company,

States

without
coercion,
sacrificing his civil

man

Norman T.
Carvell has
been added to the
staff
of
The ~ State
Investment
PORTLAND, Me.

material

man's

impressive

by the Chinese Communists.

A. G. Edwards Branch
~

Miss.

LAUREL,
wards

Sons

—

has

Ed¬

A. G.

opened

branch office at 518 Central Ave¬
Advises

Living

Our

■

It* is

own

"to-us to live

standards.

of
James L.
Cody.
Mr. Cddy wa£
formerly local manager for T. J;

nue

Own Doctrines

need

already shown that it

(Special to The Financial Chronicle)

the Soviet

rights."

a n s w e r s.

Soviet

State Inv. Adds

150

ques¬

urgent
The

made

in the West because it seems

closer to something which we our¬

only about

great long-range task.
tion
requires many
There

hu¬

care

continued

own

will

our

been

years

the

a leading
nation in a
poverty and revolution,
we must apply to the problems of
that world
not
only our great

Now,

that

rich

paid

for nearly

dends

Nations

lines:

any

United

the

•

Union,,

economic system, which satis¬
more
consumer
wants than

fies

this

founding

„

The fact

our

match

argument learn that we like those
whom we help—that
it defeats
our

Asia

and

convince

turn indeed.

immediately in N. Y. C.
Phone

one

that—as surely as
the-.- United
States
an
economic
day — if wevarc
system which works, but which
"good bankers" in the broad senseKarl Marx said could not work.
of the term and hdlp these coun¬
certainty
night follows

just
or

denied

thing, the strength and
vitality of our economy are a base

the

much

Write

definite influence for good or ill

Secondly, there is a humane ob- for our strength abroad
and so
ligation on all men to help people '
there must be prosperity here at
who are suffering.
Thirdly, assuming the,: humane- home.; That prosperity is also a
motive does not convince, there is standing.source of despair to com¬

our

Available

an¬

and
For

poor.

mane

From
—

But

Economic Strength
Equality

Fostering

one

world

1857

motive for them.

one

thing, there is a duty'
incumbent on the rich to help the
For

believe,

The

„

•

contacts

personal

stimulate- that

gress

ship.5

many

Direct

doctrines and

We have wonderful

part¬

this

understand

is, therefore, encouraging to
is be¬

how much able thought

this,

who are responsible for

•

threats of force,
economics and propaganda — and
do so with mole-like patience. We
use

cans

progress are entitled to the credit.
We do not need more doctrine.

else.\ ,
;
other principal motive should be
This is the sort of thing which /
love of our fellow man.
in the past, when left to ourselves,
There is
is so often called "foreign aid"—
no inconsistency between the two.
we
have speedily lost interest in
an
unhappy
phrase
because it
So we see that military, eco¬
military matters.
suggests that out of the goodness
There is evidence that an evo¬
of
our
hearts
we
are
helping nomic and diplomatic actions are
all essential to our foreign policy.
lution is taking place in the So¬
others even
though there is no
But they are not enough.
In the
viet Union—that the present lead¬
obligation on us to do so and al¬
ers, with their dreams of world
though it does not help us to-do,- shrinking world of today, it is
impossible to divide what you do
conquest, are not in step with the SO.
7
'
abroad from what you do at home.
Yet how false such suggestions
younger generation, who are not
interested in conquering the world are!
7"•'
777.A

become

ticated

scale

paredness. If you look at Ameri¬
can history and study the Ameri¬
can character you must agree that

Soviets

cleverer

Business-Government

•

ent

of Negro children in school
in Virginia great good will for the
United States is created.
Ameri¬

And, in the
period
since
Stalin's death,

have

;

countries,

growing

about NATO and the whole pres¬

appear

photographs appear in the

When
press

plenty of them. We have the Dec- '
laration
of Independence which
'V But military strength, although nership of business and govern¬
tells us that, "all men are created
indispensable, cannot solve* the ment aimed at promoting eco¬
nomic development abroad. Presi¬ equal." We have the words of the
problems which make this world
dent Eisenhower is
preparing a Old Testament prophet Micah,
so dangerous.
One of those prob->
who bids us to "do justice,; love
lems is economic weakness - and program for submission to Con¬
Aloof

Remain

Can't

discontent;

domination.

the

the happen¬

Partnership

which makes them tempting prey

statements and aggressive acts of

world

not

read

men

ings in Little Rock, for" example,
country's interests suffer.

Our greatest struggle, therefore,,
populations, of a size Significantly, the need for more
private capital investment in new¬ is with ourselves rather than with
away beyond the present capacity,
people without there ever being of the country to feed and clothe/ ly developing cburitries .was also the Soviet Union. We" face the
any
free elections.
When they
stressed
in
the " so-called
"Ma¬ simple fact that enthusiasm for a
decently. Millions of these people '
talk about
"socialism," they do
layan /resolution^ adopted by the bad idea can prevail over lack of
are therefore living a sort of halfnot evoke the concept of social
enthusiasm for a good idea. In this
life of semi-starvation
and dis¬ United Nations General Assem¬
welfare, but of the use of eco¬ ease.
..7;-.7:-. shrinking world, with its growing
They are demanding help. bly last Mil.
nomic power by the state to main¬
But this is an enormous field, mass communications, the conduct
If they get health and enough to
tain a dictatorship,
and one which President Eisen¬ of foreign policy is not limited to
eat, they can some day be strongs
hower discussed in all its breadth diplomats and
Like the rest of us, they make
government, .offi¬
enough to stand up for themselves.mistakes—large and small.
I do
All
that
we
ever
want from in his speech at Seattle last Oc¬ cials. An unselfish act—or an intober.^ Suffice it to say here that tolerant act—by an individual has!
not
doubt that the threatening
any country is that it should be

that

certain

huge

Africa

our

partner-' mercy, and walk humbly with thy ,t
excellent report last God." We have the Christian ideal,
of
brotherly love—"thou shalt
for conquest—perhaps even blood-* month of the President's Commit¬
love thy neighbor as thyself." We'
less conquest—by communism. ,,* tee on World Economic Practices
have plenty of doctrine; what wef
In some countries of Africa and can do a great deal to sharpen
need is to live up to that; doctrine. "<
Asia there
are
large and/' fast- our., understanding of this subject;

tory reasons

Growing

For us to

see

military strength, Mr. Lodge says we must live up

our

totalitarian government.

very

was

own

our

country,

free countries sur-.
vive is worth all that it costs.
,

against all the resources of

re¬

be able to help

Besides main¬

pursue.

feel Certainly no individual business¬
aid man can be expected to stand up

can
were

useful and constructive.

representative to set forth five
we

when

that

ment

of intimate experience with our foreign policy

Twelve years

year,

quested to do so by the govern¬

City

New York

last

ability to come to the

our

Lebanon

Representative to the United Nations

United States

events

abroad.

nations

of free

products

IIENItY CABOT LODGE*

By HON.

undersell the

does not hesitate to

Army in Germany and Korea. As
look back, for example, on the

America's Investment in Freedom

.Thursday, April 23, 1959

(1870)

our

When in Asia and

under

Feibleman

the

Co.

management

■

(1871)

Chronicle

Number 5840 ...The Commercial and. Financial

Volume 189

favorable

least

To Fund

Not to Fund

vided

-That Is the

•u

By PAUL EINZIG

such

for

opera-

■.

"To fund

fund," that is the question puzzling Britons

not to

today. ' Cr. Einzig re zeals the inherent clash of the Keynesian
contra cyclical concept of government debt-management versus
the realities as to when it is most practical for the Treasury

not

'r.'-7/.-.td fund its floating debt and maturing loans and when to de"

flexible reserve re^uirements so that liquidity brought about by banks' holdings
iyy' 7n-*;of Treasury bills can be offset whenever desired.
ment
L

has

A-l

—

the

been

iL .-1

A' • :J V

overrated;

Moreover,

thought

■

which

'tion

"extent

the
is

reduction

solu-

alternative

which

the

volume

the
of

IX •

;

A.1

*\X7>-kw»l

iUx

•

11.

forum

ngn,,.

riUglcllll

Montreal, chairman.

This will be

TORONTO, Canada
The In- followed by a meeting of all the
vestment Dealers, Association of members, who will be addressed
Canada has announced the pro- by
R. Crump, President odt
gram for the annual meeting to be Canadian; Pacific Railway, Monheld June 8 to 11 at Banff Springs treal. In the evening there will
Hotel, Alberta. This program has be a reception by the incoming
been arranged so that the business President.
sessions for the members will be

held in the mornings.

With

Saunders, Stiver

Scheduled for June 7 is the
meeting of the members of the;
fecial to t™ financul chronicle)
outgoing National Executive ComvELAND, Ohio —John W.
mittee, and another meeting of the McNally is now affiliated with
committee will be held June 8. Saunders, Stiver & Co., Terminal
.
.
""

/'credit depends on the volume of
The Govern- Young (now7?.Lor,d '';K.qnhet)Trin:;Treasury Bills. This end could be
subject of a 1919, during the inflationary pe-vachieved by bringing about a rad...

ff ;; LONDON, Eng.

might be worth while to give some

He advises his country to institute

fund

uOllvcllVIOII

•;

Hr»

effective answer to booms

^apci: depressions there would be a
case for bearing the burden of the
additional interest charges for the
sake of mitigating booms and
slumps. As I pointed out at the
;
beginning of the article, however,
; the extent to which a policy of
defunding is liable to contribute
towards business recovery should

°n Wednesday there will be a
on the Canadian Money
"'Market, withW.M. Dietrich, Nesbitt, Thomson and Company Ltd.,

IIIAf* tnilAIIIII^OC
llfMU MllllUUIlVUa

tions. which could only be effected
on costly terms.
If the policy pro-

Also on June 8 will be a reception
by the President, E. H. Ely, for
1___

il.

•

1 Jl.

J°wer Building, members of the
Midwest Stock Exchange.

Dempsey-Tegeler Adds

»•

(Special to The Financial Chronicle)

cheap

induced the authorities to embark

in the;1;

money

thken

;
f

;no^

purchasing y power, of pushing and defunding at the
increasingly unwilling to hold ; wrong time.
interest bearing securities.'
Hence' the " increase in the yield
on
Government loans under the
% "
combined effect of inflation and
sterling's

ar-

El.z„

would

:
v,

to (finance
ture at

the

be welcomed by

ANGELES, Calif.—Charles

Neale

and

Adolph Reinbrecht

have been added to the staff of
Dempsey-Tegeler & Co., 210 West

the Hon. Dr. J. J.Bowten, Lieu- Seventh Street. Mr. Neale was
s£aker"at the^meeting wUl formerly with Hiu. Richards &
Harold S. Foley,

Chairman of
Ltd.

the Powell River Company.

Co.; Mr. Reinbrecht was
California Company,
T

•

;

.V* /

prob-

creation;of conditions
a
business reyival,

stimulate

of those who had advocated
policy of funding are in favor of .;
reversing that policy and reverting to the Keynesian method of
reflation through defunding. Their
attitude has certainly the merit .
of being logical. Since they advo- cated funding as a method of disinflation it may seem reasonable
that they should advocate^defund-;
ing as a method of reflation. But
a

while this idea of managing the ,
business cycle with .the aid of al-*- ;
ternating between funding and
defunding may appear --.sensible ,.
rates as it is to reduce short-term from the-point .oft view of its ob- >
interest rates., Admittedly, if the jective, it seems to be highly ques- , . t,
'The above argument is open

bers, who will

many

expendi-

capital

low rate of interest.

the immediate

that

lem is the

towards

Vancouver

Contradiction

long way
stimulating capital expenditure. The basic premises of
this argument are open to question, since a high proportion of
existing producing capacity is at
present unused, and there would
be, therefore, little inducement for
a-further expansion of producing
capacity, even if it were possible
go

' ;;

jj^olicy.

Now

lowering of long-term rates

LOS
Ltd

Immediate Problem and

mainly respon¬
sible for the slow pace of recovery
ffom the business recession, and
interest

Securities

funding

•>'•

tal expenoiture is

erf

berton

vivalof capi-

that

more intelligent and less cosily
depreciation method than the present method

fixed

adequatexe-

•

Treasury

was

;

gued that the
absence

the

result^was that;!lohg- ^yojume 0f cre(jit. This would

ual realization of the

fective."meas-

the yield on
1 o n g -1 e r m

and

SeUvhiclT^winBto'themAd-',8

ef- ; -

Ures to reduce

loans. It is

The

issue.

creditsj .it has

United-States,

policy of debt fundiilg in; should have the power to change This will be followed with the
to' reduce^e.'^r^asury.^ bill Them in order to influence the annuaf
meeting" of air the "mem-

order,

sp h e r e, oi~
short - term

f oil

;

criticism also

TrGssurv

wptp

rcvprt

tho

inflationary policy pursued in the
bad old days of Dr. Dalton's Chancellorship, when- the" authorities
large-scale

Were

buyers

Gov-

.ernment loans in order to bolster

their prices, and increase the
debt in the process, it

floating
would
an

possible to bring about

artificial reduction of the yield

long-term loans.

sons

the ground

that
it is not so easy for the Government to reduce long-term interest
on

But the les¬

of this ill-advised experiment

tionsblG from ttio point of view of

the management
debt.
.

the

mental from the point of view of f :
the terms on which the Treasury ; .
was
able .to fund its* maturing ;'*
short-term debt. In order to in- ,
duce

reluctant V

increasingly

market

absorb

increased

have not been forgotten, and none

amount of

had to
offer a higher yield.
Indeed, it
was
becoming increasingly difficult to persuade investors to hold

Discusses Keynes' Views
The solution favored by the Government's critics is the Keynesian

Government
to equities.
As

amazing how the stocks of the late

cession

Lprd Keynes fluctuate rin aca$emic circles in inverse ratio to

now

attractive

business fluctuations.

ago.

was

"depression

whose

teachings

amidst

economist"
valid

not

are

conditions

expansion

and prosperity.

long-term and medium-:

loans

term

remedy of de-funding. It is indeed

During the
prolonged period of inflationary
postwar boom the popularity of
Keynesian doctrines underwent a
decline on the ground that Keynes

The application of the policy of
funding during the period of post-r !
War inflation was highly rdetri- ? :

of the Government's critics advo¬
cate its repetition.

public > ;

the

appear

business

was

re-

months

•

living has

For
be

now

this

easier

to fund floating

reason
for' the

with

THE INDUSTRIAL SOUTHEAST

During 1958, Southern Natural Gas Company

the investors to hold Government

loans.

keep

come

halt, there seems now to be
willingness on the part of

•You have to GROW FAST to

(

time since the

same

rise in the cost of

prospects of equities
to many people less

than

the

.•
.

preference /'

loans

result of

■

Treasury

it" would
Treasury

de'bf and niatur-'

His policy of defunding, thanks to which Britain

terms.

and

inaugurated the greatest

ex¬

pansion program in its history. Our natural gas delivery capacity climbed to
about 1.2 billion cubic feet a (lay. By the end of 1959, we plan to have
invested $100,000,000 for the system expansion program and connection of
new
gas supplies
billion cubic feet

and to have upped our delivery capacity by 35% to 1.35
day.

with the view that it is the Gov-

most

tries

other

were

Second
low

able

World

rates

belligerent

War

coun-

finance

the

relatively
interest,
became

thoroughly discredited during the
period of creeping inflation.
It
resulted

high

unduly

pro-

on relatively favorable
But to do so >vould conflict

ing loans

It takes

ernment's duty to stimulate business

revival during

means

of defunding.

recession by *
A reduction t v

Bill issue would
be denounced on the ground that
it tends to reduce or keep down
in

the Treasury

•

and
the

our
.

our

up with the increasing needs of our territory
further information on Southern Natural's share in

rapid growth to keep
customers. For

booming INDUSTRIAL
Report.

SOUTHEAST.

Write

for your copy

J 959 Annual

portion of floating debt assuming the volume of credit and thereby,"
in Britain mainly the form of
large volume of Treasury Bills.

Under the British system

quidity ratios banks
tion
of

are

expand credit

of liposiresult

increase in their holdings of

Treasury bills.

For this

reason an

expension of the Treasury bill issue

fact

essentially inflationary. This

was

first stated by Sir Hilton

to delay recovery.

\tuhal Gas

You Can'4 ^.un? and Stunotote :
Business

PAN Y

To Put H in a nutshell, the application of the fashionable policy
of funding duiing boom and de-

Senintj the Growing South
WATTS BUILDING

^Thaf^e^TSy'wouM0^
ways

when

have to undertake
market conditions

funding
are

the

•

BIRMINGHAM, ALA.

with First

The Commercial and Financial Chronicle..

(1872)

.Thursday, April 23, 1959

outstanding—

(Number of shares

80,000 shares, par value $10).
if

News About Banks

The

capital

common

Citizens

The

tional

NEW BRANCHES

increased from $11,500,000 to

REVISED

300,000

CAPITALIZATIONS

Irving A Wills has been elected
Trustee of The Dime Savings

Bank,

was

$12,stock dividend, and
from $12,000,000 to $14,000,000 by
the sale of new stock, effective

Bankers

and

ETC.

NEW OFFICERS,

Na¬

Ga.,

Savannah,

CONSOLIDATIONS

National Bank of Boston and subsequently became Manager of the
President

department. In 1937,
Pittsburgh,, as Viceof
Mellon ..National

Bank.

April 10. (Number of shares out¬
standing — 1,400,000 shares, par
value $10).
if

•

the merger

following

1946,

Bank

National

Mellon

between

;

and The Union Trust Company

Pittsburgh, Mr. Raymond was ap¬
Trust

and

Bank

mon

announced

Johnson, Chairman of the Board.
Russell

thony

rectors.

The

following year, Mr.
became a member of

Raymond

and

Treasurer

Assistant

named

the Executive Committee.

respectively, of

Assistant Auditor,

1957 he was

and

been

have

Cucciarre

and An¬

Tompkins

Mellon Bank

sj:

County

Hughes, Chairman, announced
April 17.
Mr. Tompkins has been with the
bank since 1945 and is currently

northern West¬

assigned to the
chester region.

Bank

The

Bridge,

Gauley

(Conn.)

Haven

director of The Cleveland Trust

opened its 12th lo¬
Gund, President.
cation, this week, and is designed
'

exclusive

toring

Place

Ashburton

and

section

business

central

West Haven.

with
and

National

First

Jersey

The

City,

Bank

common

National Bank

Harrison, Harrison, N. J., with
common stock of $522,000 merged,
effective April 3. The consolida¬
tion

charter

National
with

The

First

Jersey

City,

title

and

Bank' of

the

under

effected

was

capital stock of $4,725,000,

divided

into

shares of
stock of the par value of

common

veteran of
more
than 37 years in banking
and finance, has been elected an
Assistant

Wilson,

Cashier

and

Branch

Manager of Society National
Bank, Cleveland, Ohio, Mervin B.

N. J., France, President, announced fol¬
the
regular
directors'
stock of $4,000,000; lowing

West Hudson

189,000

$25 each.
❖

meeting.
On July

1, Mr. Wilson will as¬
sume
his duties as Manager of
Society's
Uptown
Branch,
921
Huron Road, succeeding Walter
W. Free, who will retire at that
time on
Society's Pension Pro¬
gram.

Mr.

Kingsbury S. Nickerson, Presi¬
dent, announced that the lending

Wilson

began his banking
career
in
1922
and
has gained
wide experience in many phases
of

open

Holt is

Hardin

Cashier.

its

creased
from

the

banking.
!ji

The

to $3,750,000 by
of new. stock, effective

April 9. (Number of shares out¬
standing — 375,000
shares,
par
value $10).
if

Elliott McAllister, Board Chair¬
of The Bank of California,

stock

Assistant Trust Officers.
Mr.

Powers

Assistant

was

Minn., where

St.

Paul,
in

office

Both

Minn.

officers

to the bank's head

assigned

are

Francisco.

San

Bahk,

Los

will occupy al¬
ground floor of Tish22-story downtown
office building, soon to be con¬
Angeles,

Calif.,

most all the

man's

structed

northwest

the

Wilshire

corner

and

Flower, it was
announced by Roy A. Britt, Pres¬
ident.
The bank's occupancy of
the new quarters is scheduled for
next spring.
The

new

branch

fifth

the

serving

for

Citizens

area

office will

the

National

Bank

—and when completed, will bring
to
51
the number
of
Citizens'

branches serving Los Angeles and

Orange Counties.

si:

Edgar S. Lewis has been
pointed Vice-President in the
tional

office

and Trust

na¬

Pittsburgh,

Company,

according to

Pa.,

announcement

by Frank R. Den¬
ton, Vice-Chairman of the bank.
Mr. Lewis
in

1956

1958, he

came

to Mellon Bank

Assistant

was

Cashier.

appointed Assistant

Vice-President.
Before coming to Mellon Bank,
Mr. Lewis was associated with

the Crocker Anglo National Bank
of

San

Francisco.

had

been

loan

officer

and

business development.,

appointed Chairman of the Exec¬

tional

Committee

neighborhood
Bank

Mellon

partnership

according
by

The
Bank

Clark
of

tional

Mellon, Chairman of the bank.
Mr. Raymond started his bank¬
career

1924 with the First

retire

Clark,

By
mon

Dak.,

effective

stock

the

New

Bianchi,

The

First

ANGELES,

with

has

Calif.—Stuart
affiliated

Kidder, Peabody & Co., 210

merly with Witherspoon & Com¬

increased from $400,000

$800,000,

effective

ApriL iL

pany,,

Inc. and.

line

the

year

shown

combined
with

loss

1958's

have

been

and

the

rate

quite

1957.

for

worst

There

rate

in¬

line, but as has
out, it takes some
increases

these

with

ratio,

the

this

pointed
for

five-

108.2%

expense

number

creases

The

been

111.0%

except

been

time

black.

has

average

the
hikes

rare

catch

when,

losses—even

adequate—-a

are

occurrence,

add.

;

might

...

tbe other hand, Workmen's
Compensation reports show that
line continuing in the black, even
though at a reduced rate.
1958
showed a 98.0% loss and expense

ratio, the highest of the past five
years. The average for the

94.4%.

was

must

period

remem¬

bered that the results in this line

affected
quite directly by
general employment. When labor

are

is employed full time and at good
wages, it docs not pay a workman
to lie up as the result of an acci¬

dent

continue

can

job. Put another
the line in

his

way, woe

betide

period of bad

reces¬

sion

or
depression. But at this
juncture it is one of the brighter
spots in the insurance field.

five

93.8%,

the

1958

underwriting
5.7%.

some

line

showed

margin

profit

The average for the

years through 1958 is a loss
11.6%; and each of the four
years
preceding 1958 showed a

quite respectable profit

margin of 6.2%.

material loss in the line.
In spite of the very
perience in the past six

poor

ex¬

or seven

volume of premium writ¬
ings of extended coverage has
been increasing steadily. It ran to
$525,000,000
in
1958,
compared
years,

one-fifth

about

recently

being

are

the

PHOENIX, Ariz.—The Phoenix
Society of Financial Analysts will
hold a luncheon meeting on April

made

that

Ef¬

speaker will be Paul G. Blazer of

reduce

Ashland Oil & Refining Company.

experience, the
being part of
It is to be hoped

campaign.

Analysts

To Hold Luncheon Meeting

bad

use

Phoenix Fin.

1945.

deductibles

1958

results

in this

line

Arizona

the

Club.

Guest

As the meeting is limited to 44
members

should

and

with the

guests, reservations

made

before April 27
Secretary of the Society.

was

for¬

Dean.Witter^Co,

Tariff is $2.50.

repeated, as the carriers
large debit to make up in
this one. No hurricanes will help.

have

The results in straight fire saw
the
combined
loss and
expense
ratio hold closely to the 1956 and
1957

figures,

from

1954

and

some

distance

and

■

Form Jame-Stem Co.
(Special to The Financial Chronicle)

OAKLAND, Calif.—Jame-Stern

Company, Inc., is conducting a
securities business from offices at
546

Avenue.

Grand

Officers

are

1955, which were
Carol E. Jame, President; Joseph
in the line. The
A.
Hunter, Vice-President: and
loss and expense ratio for 1958
Harry H. Stern, Secretary-Treas¬
was
100.5%,
and the
five-year
urer.
All
were
with Wilson
&
average 97.7%.
Bayley.
Auto Property Damage Liabil¬
ity, continued a poor showing, al¬
though there
was
improvement NATIONAL AND GRINDLAYS

quite good

over

1957

years

(102.5% combined ratio

COMPARISON & ANALYSIS
FIRST

BANK LIMITED
Amalgamating National Bank of India Ltd,
and Grindlays Bank Ud.
Head Office:

QUARTER 19S9

New York

Bank Stocks
on

Request

54 PARLlAmi^i l
13 ST. JAMES'S
Trustee

Rd.,
St.;

Members New York Stock

Exchange

American Stock Exchange

Depts.:

Nairobi;
Tax

Depts.:
13

oIiv*lET, S.W.I
SQUARE, S.W.I

13 St. James's Sq.; Govt.

Ins.

Travel Dept.:

come

Members

BISHOPSGATE, LONDON, E.CJ
London Branches:

City

Laird, Bissell & Meeds

West Seventh Street.

was

bodily injury has also had
showing. Only in 1954 of
the past five calendar years has
bad

National Bank of Winston-Salem,

C.,

Auto

But

Peabody

become

worse

Auto physical damage showed a
surprisingly good year, at 75.4
combined loss and expense. This is
far-and-away the lowest figure
for the five year period, and it
helped ease the average down to

Bulletin

Power

time

by hurricanes, and, in the
few years, severe tornados.

will

and Paul V. Land, Vice-President.

some

This
real

caused

past

York

Harold

Now With Kidder,

for

one

past, largely because of the losses

the

Brown, John De Braganca, Joseph
M. Galanis, Hunter B. Grant, Jr.

troublesome

that

(Special to The Financial Chronicle)

stock dividend, the com¬

capital

coverage for 1958.
line, it will be recalled, was

Stock Exchange, as of May 1, and

Charles

National

April 10.

firm

will

was

County

Clark,

Bank

Na¬

Richard

Stetson

Winslow,

near

The fire companies turned in a
surprisingly good showing in ex¬

Will Be NYSE Member
&

Good Showing by Fire Companies

cause

The

the exposure of the companies be¬

be Samuel R. Winslow, President;
Eugene W. Stetson, Jr., Chairman
Farmington Road, of the Board; Charles A.
Clark,
to serve the rapidly growing pop¬
Jr.,
Executive
Vice - President;
ulation in the northern part of
William C. McKinney, Vice-Presi¬
Farmington Township.
dent and Secretary; Ivan Pousif
if
3:
chine, Vice-President and Treas¬
Duluth National Bank, Duluth,
urer;
Stephen
A.
De
Guard,
Minn., increased its common capi¬ Vice-President and Assistant
tal stock from $250,000 to $350,000
Secretary; Walter V. Austin, Wil¬
by a stock dividend, effective liam V. Couchman, Herbert Lloyd,
April 8. (Number of shares out¬ Fred E. Walton, William J. Banistanding—7,000 shares, par value gan, Karl P. Herzer, Malcolm S.
$50).
McConihe, Jr., Charles
W. Snow,

Road,

=:•

forts

recently opened at 33200 Twelve
Mile

schedules, most affected.

new

with

LOS

Bank,

announcement

ing

National

changed its title to The First Na¬

Jonathan S. Raymond has been

utive

value

Detroit, Detroit, Mich., which

with that company for eight years

serving

64th

the

ap¬

department of Mellon Na¬

tional Bank

the

Cars used by male drivers
of age are, under

under 25 years

amount

Winslow, Cohu & Stetson, Incor¬
porated, 26 Broadway, New York
City,
will
hold
the
Exchange
membership.
Officers of the Ex¬
change member corporation will

This

Their underwriting results in the

the

showing, but with
and loss costs
what they are, it continues to be
hard to get the line into the black.
a

many more cars,

downtown

standing—50,000 shares,

par

rate

some

underwriters.

the

automobile casualty lines had de¬
teriorated badly, and there was

new

member

»»:

from

tended

National

000 by a stock dividend, effective
April 10. (Number of shares out¬

$20.)

withholding

increase

Officer

Trust

with The American National Bank

Cohu

for

ever

ably.
the West

comes

increased from $600,000 to $1,000,-

and

rates

helped

was

going except for a few years. Rate
increases have helped to prevent

showing

affects
of the
private passenger automobile lia¬
bility coverage in the state; and it
averages out to about 18%%■.
In,
the light of the motor vehicle ex¬
perience for several years past
there was no justification what¬
in

danger that the surplus accounts
Francisco, Calif., announces of some of the smaller units could
appointment of Richard D. be impaired.
But the improve¬
Powers and Gordon K. Craig as ment in rates will
help consider¬

Bank

increase

the

Trust Company of Peoria, 111., was

iThis

en¬

San

of Jersey City had been increased

board of di¬
rectors at its meeting authorized
the transfer of $550,000 from un¬
divided profits to surplus bring¬
ing the bank's total capital and
surplus to $10,000,000.

Another application was
tered, and the revision made.

man

The

National

•

limit of The First National Bank

$1,000,000.

Central

National

Calif., in¬
capital stock

$3,000,000

sale

exces¬

carriers writing about 80%

Diego,

common

sive.

Winslow, Cohu Corp.

capital

common

States

San

bank

and

5^-

United

The

Tom

and

The

has a capital of $200,000
surplus of $300,000.

Bank

bank.

new

President

...

City,

Jersey

permission to
F.

applica¬

one

of 98.2%

by the years
1954
The line has had rough

1955.

adamant
upward
taken

105.1%). The five

versus

considerably
and

even

Commissioner

tion for increased rates

Citizens

Lester

carriers.

the

Thacher turned down

s;s

»f«

Bank

1958,

re¬

was

Dallas, Dallas, Texas, was granted

mo¬

Campbell

customers,

Avenue

the

of its

use

National-

Northwest

stand that

for

year average

has

in the face of serious losses

even

Company, Cleveland, Ohio, it was
announced on April 17 by George

state

It will be

revisions,

Coast from St. Paul,

Ellery Sedgwick, Jr., was elected
a

First New

the

Gauley

Bridge, West Virginia, effective
April 6, and relocation of main
banking house from Winona to

since

National Bank
for

National

Gauley

with the

Company

Trust

1942.

The

title

Gauley Bridge, West Virginia.

Mr. Cucciarre has been

County

its

the

granted increases.

shares, par value $20).

Trust
Company, ■:/ The Winona
National
Bank,
White Plains, N. Y., Dr. Joseph E. Winona, West Virginia, changed

The

commissioner

er's predecessor was long
in his refusal
to grant

elected to the bank's board of di¬

Well, the long drawn-out effort
Insurance companies oper¬
in New York for a fair
rate increase on bodily injury and
property damage lines has finally
paid off, and the new insurance
of the

ating

$250,000, effective April 8. (Num¬
of shares outstanding—12,500

s£t

1953, Mr. Raymond was ap¬
pointed Senior Vice-President of

Insurance Stocks

ber

tions.

Brooklyn, N.Y.
by George C,

Bank of Brooklyn,

rela¬

customer

and

business

new

A. Wills

Irving

First

—

called that Superintendent Thach-

Com¬

in charge of the banking
department. In this capacity, he
was responsible for all loans and
deposit accounts of the bank as
well as for the development of
pany

com¬

Week

National Bank in Childress, Texas,
was
increased
from $150,000
to

pointed Vice-President of Mellon
National

stock dividend the
capital stock of The

came

By ARTHUR B. WALLACE

This

bank's credit

Bank and Insurance Stocks

stock

Southern

and

Dept.:

64- Parliament

13 St. James's Sq.;

Parliament

Bankers to the Government in
doanda. zanzibar *

: aden, kxnta,

Branches in:

Telephone: BArclay 7-3300

mdia, pakistan, ceylon, burma, jqbmya.

Bell

Teletype NY 1-1248-49

Specialists in Bank Stocks

somaliland ntOTBCrCNURi

120 BROADWAY, NEW YORK 5, N Y.

(L. A. Gibbs, Manager Trading Dept.)

Da-

St.

St. James's Sq.

tanganyika, zanzibar, uganda.
aden, somaliland protectorate,
northern and southern rhoobsu.

Number 5840

Volume 189

...

The Commercial and Financial, Chronicle

New Hardy Branch

A. C. Simmonds Heads

Appeal

Albert C. Simmonds, Jr.; Chair¬
man

New

York, will serve as Chair¬
of the metropolitan division

man

appeal.
accept

Mr.
ac-

located

a n ce

was

159

York

Broad

Phalen,

Holders of the

value

Street, New

City.

WASHINGTON,

New

York

the

Rigdon
formed

Telephone

mont

Company, the
Fund's.

gen¬

campaign

Chairman

and

Opens

has

purchase

securities
a

business.

Joseph

will be

en¬

new share
held; holders

one

The

company,

quarters

principal.

whose

in Cleveland,

are

head¬

Ohio,

devices

Named Directors
A.

Robert

and

Brauns,

and

New

owns

91% of the outstand¬

ing stock of K o 1 u x Corp., a
Kokomo, Ind., outdoor advertising

York, and John G. Eidell, of

McDonnell's San Francisco office,
have

been

elected

the

Consolidated

sales

of the

com¬

in the year ended Dec. 31,
1958
(Kolux for eight months)
totaled $5,449,000 and net income
was $243,000.

pany

With A. G. Edwards
{Special to Toe Finanoai. CanoNicLg)

ST.

LOUIS,

Mo.—Mrs. Martha

Now With Reynolds

Pattengale has joined the staff

(Special to Tim Financial Chronicle)

Edwards

Sons, 409

North Eighth Street,. members of
MINNEAPOLIS, Minn.—Benton
J. Case, Jr., has become affiliated the New York and Midwest Stock
with Reynolds & Co., 629 Second
Exchanges. Mrs. Pattengale was
Avenue, South. He was formerly
formerly with B. C. Morton & Co.

with

the

Northwestern

National

and Slayton & Company,

Bank of Minneapolis.

Inc.

Simmonds, Jr.

Director

of the

Fund,

will direct the campaign to solicit
more
than 100,000 neighborhood

businesses for firm

contributions.

The Fund will begin

its 1959

FASTEST-GROWING FUEL

ap¬

peal in May.

Detroit Basis Club

in America's

Schedules 2 Outings
DETROIT, Mich. —The Basis
Club, the young men's bond club
of Detroit, has announced a stag
Golf outing to be held on Friday,

FASTEST-GROWING REGION

May 29, at the Lakepoint Country
Club, 22185 Masonic Boulevard,
St. Clair Shores, Michigan.
Members
scheduled
with

their

and

tee

cocktails

off

and

guests

are

2:00

dinner

p.m.

record deliveries

El Paso Natural Gas Company

after¬

wards.

Preparations for the affair
the

hands

the

of Natural Gas to customers in the West

are

Committee

Chairmen, Don Richardson of
Nauman McFawn, Pat Inman, of
Kenower, MacArthur and Peter
Higbie of First of Michigan.
Second Annual Basis

The

Club

outing has also been an¬
nounced for August 14 and 15 at
the St. Clair Inn and Country Club
—St. Clair, Michigan.

Natural gas is
energy source,

summer

Members

their

and

wives

weekend

golf,

swimming,

water skiing and bridge.
tail

for

party and dinner

are

Friday evening with

event scheduled.

A cock¬

planned
special

About 75

Reservations may be made with
Ed Parr of Merrill Lynch, Pierce,

1958

John Taylor,
of First of
Michigan Corporation.

El Paso and subsidiaries continued to

than

Aerial

In¬

corporated, Melrose Park, Illinois,
avionics
manufacturer, has an¬
the

for

trillion cubic feet.

Extensive exploration and

purchase

election

John

years

California, West

Texas, Arizona, Idaho, Nevada, New Mexico,
Oregon, Utah, Washington,

in the

Lynch, of the investment banking
firm of Blyth & Co., Inc., to the

Company and its sub¬

tion, serve customers in

cubic

feet—assuring vitally needed energy supplies
for western consumers and industries

natural gas,

petroleum, for petro-chemicals.

sidiary, Pacific Northwest Pipeline Corpora¬

brought- total gas reserves at year's
all-time high of 38.8 trillion

well as plans to meet the future

El Paso Natural Gas

pro¬

needs of western consumers—for

deliv-

end to

Industries,

report gives details of 1958's accom¬

plishments,

eries totalled

$35,308,813 in 1958, compared with

The

demands of the West.

For the second consecutive year, gas

consolidated

for 1958 of $368,299,522, com¬

$34,506,238 in 1957.

the long-term

their gas reserves to meet

grams

John J. Lynch, Dir.

nounced

was

expand their pipeline systems and increase

energy

cent in 1958) reports

pared with 1957's $301,090,537. Net income

record highs in

Committee Chairman,

Chicago

10 per

distributed

stockholders (an increase of

gross revenues

Deliveries of gas were at

to attend.

Smith,

and El Paso Natural Gas Com¬

mem¬

bers and their guests are expected

Fenner &

to its 51,835

fastest-growing market.

and

guests will be looking forward to

El Paso's 1958 annual report,

America's fastest-growing

and its subsidiaries serve natural gas's

pany

Wyoming and

Colorado.

ahead.

Board of Directors. The additional

board

position is in line with
Chicago Aerial's continuing pro¬
gram of expansion in the avionics

RECORD GAS DELIVERIES

and missile field.

MEET WEST'S DEMAND FOR ENERGY

—

1,000,000,000
800,000,000

100,000,000
700,000,000

For

Joins J. C. Bradford
J.

C. Bradford & Co., members
Exchange,

of the New York Stock
announced
now

that

Lee

Rehill

associated with the firm

VOLUMES

600,000,000

IN MCF at-14.9 lb. P. B.

1958 Annual Report
to

500,000,000

400,000,000

Stockholders, write

300,000,000

to El Paso Natural Gas

200.000,000-

representative in the
New York office, 44 Broad Street.
He was formerly with Reynolds

registered

copies of El Paso's

Company, El Paso,

100,000,000

Texas.

Co.

Midwest Exch. Member
CHICAGO,

111.—The Executive

Committee of the

Midwest Stock

Exchange has announced the elec¬
tion

Carolina

Glenn.

Anderson,

With Midland Investors
COLUMBUS, Ohio—Saul Sokol
is

now

EL PASO NATURAL 6ASW LCOMPANY

Securities

Corporation„
Raleigh, North Carolina, to mem¬
bership in the Exchange.

with

Midland

Investors

Company,. 52 East Gay Street.

Common Stock listed
Registrars:

the New York Stock Exchange, Midwest Stock

New York, City Bank Farmers Trust Company;

Translar Agents:

New York, The Chase Manhattan Bank;

board

Industrial
Leasing Company, Inc., Alham>*
bra, Cal., it is announced.

of directors of Amacorp

company.

Mr.
a

vice*

ment

Simmonds, who is also the Treas¬
urer

president of the investment firm
of McDonnell & Co. Incorporated,

subordinated

eight shares for each $100
of debentures. Rights will expire
at
3:30
p.m.,
(Daylight Saving
Time) May 7, 1959.

detection

specialized electronic com¬
ponent parts.
Victoreen Instru¬

common

company's $1 par

stock

convertible

chase

been

at 1129 Ver¬

with offices

subsidiary, produce medical
equipment, ra¬

other

debentures will be entitled to pur¬

C. —Carr-

Company

Avenue, N. W. to engage in

Wall is

for

this year,

common

titled to

Carr Rigdon

Pres¬

ident

price of $9.75 per share.

for each four shares

Clifton

additional

stock at

an¬

nounced

eral

The Victoreen Instrument Co, is
offering to the holders of its out¬
standing common stock and de¬
bentures of record on April 16,
1959 rights to subscribe for 247,-

543

Katz, manager, and Arthur H.
Wolf,
registered
representative.
Headquarters of Hardy & Co. are

1959

Simmonds3

office

Common Stock Offered

Cyrus S. Fisher
is the resident partner in charge
of the new office, and associated
with Mr. Fisher are Stanley W.

York

Fund's

York

X-ray measuring
diation

Madison Avenue.

of the Greater
New

New

town

of the Board of the Bank of

and

Victoreen Instrument

Co., members of the
New York Stock Exchange, have
announced the opening of a mid&

Hardy

N. Y. Fund

(1873)

Exchange and Pacific Coast Stock Exchange.

Chicago, The First National Bank of Chicago.

Chicago, Continental Illinois National Bank and Trust Company of Chicago.

)

The Commercial and Financial

£6

The Over-the-Counter Market
to build new

Continued from first page
a

Chronicle

...

Thursday, April 23, 1959

.(1874)

dozen large

have been very

whole

churning
"governments" were
offered, and especially last summer when a few
thousand buyers who had bought "on the cuff"
for profitable ride, saw their bonds slide off five
points. And there remains in view the problem
of just how much over 4% "long" governments
will yield in these days of unbalanced budgets
exciting periods of absorption and

their

ing, in their daily quotations how

Then, too, in many metropolitan areas, prob¬
lems of commerce or transportation have arisen

■

requiring the creation of special "authorities."
These, in turn, customarily finance their con¬
structions and improvements by marketing bond
issues.
So we see huge public corporations such
as Port of New York Authority raising vast sums
in. bonds, traded over-the-counter, and nowhere

All Kinds of Tax-Exempt Bonds
But

instru¬

"governments"" and government

mentalities

are

but

section of this huge Over-

one

These

the-Counter Market in bonds.

are

also the

municipals — the obligations of all our political
subdivisions from states and cities down to local

else.

With few excep¬
placed and
traded over-the-counter. In consonance with our

Dozens of cities

both Coasts have relied

and

these "authorities" to improve

harbors, piers
port facilities, or to build bridges, tunnels or
terminals for more efficient transport and freight
on

school and drainage districts.

tions all of these tax-exempt issues are

handling, and to attract new business to areas.
The Over-the-Counter Market makes all this pos-

rapidly rising school-age population, bonds issued

altitude
income1

securities, you may wind up
owning nothing but bonds like the foregoing. ;>
tax

exempt

and many of the bond , issues of

Territorial,

Rico and the Philippines have
traditionally been traded in the Over-the-Counter
Market. With Alaska now a State, and not a
Canada, Puerto

Territory, large emanations of debt securities for

highways, schools and other public improvements
may be expected there. All of these, too, will be
over-the-counter items.

well, or how

poorly these premium highways have lived up to
original projections of traffic and revenues.

the-Counter Market.
'

by the hundreds of millions, a
bonds which the prewar bond

asphalt, eliminating hours,
lights, from the running
time between dozens of our major cities., And
these toll and superhighway bonds originated,
and trade, only in the "Counter" market reflect¬

But whatever the
governments, the market that reflects
worth in depression or boom, is the Over■'

see,

series of

sible. In fact if your tax bracket is of such
that you can greatly improve your net
via

and hundreds of traffic

will

bons of concrete and

swollen national debts.

yields

big segment of

buyer scarcely heard about. They are the toll
road bonds which have financed broad new rib¬

about, when new long term

and

also

busy indeed, in recent months,

reorienting their quotations in line with the high¬
est bond interest rates in 25 years.
There have
been

continue this year.

These organizations

commercial banks.

largest

schools comprised

Progressive and Panoramic

municipal market in 1958; and that trend

the

dealers and some of our country's

—

Sole Market for Bank and Insurance Stocks
Most of

large financial institutions wherein

our

publicly held, are traded over-the-counter.
past six months there have been livelv
swings in such outstanding life insurance equities
as Connecticut General Life;
Continental Assur¬

stock is
In

the

Republic National Life of Dallas, and
Life; not to mention the upswing in
Columbian Life animated by its merger into

ance;

Franklin

Hartford Fire.

•;,

The banks of the

country turned in fine earn¬

ings reports for 1958. To become a stockholder in
any of the 14,000 commercial banks in the United
States, however, it is necessary to place your
order in the Over-the-Counter Market. No U. S.

operating bank is listed on an exchange (although
there are a few listed bank holding companies).
As

know, bank mergers and rumors of
current, and recurrent, phenome¬
Certain stockholders of New York Trust Co.

you

mergers are a
non.

for that institution to effect a
there were "near-miss" merger negotia¬
tions between Bankers Trust and Manufacturers
Trust (in New York); and of course the resplend¬
ent merger of J. P. Morgan & Co., Incorporated,
with Guaranty Trust Co. of N. Y., creating the
country's fourth largest bank. Now these mergerplans — the projected and the completed —- de¬
pended on the Over-the-Counter Market for share
valuations of each institution, and the appropriate
terms for allocation of the equity in the proposed

have been eager

merger;

LEE HIGGINSON

CORPORATION

new

Members:

New.York, Midwest and Boston

American Stock

financial institution.

Stoek Exchanges

The Ebullient Electronic Issues

Exchange (associate)

If there
investment

banking service since 1848

BROAD

STREET

CHICAGO 4

BOSTON 7

NEW YORK 5
20

FEDERAL

STREET

was

over-the-counter performance

given to any group in 1958, it
would, no doubt, have been presented to the
electronics section.
This was, indeed, the most

"Oscar"

231

fashionable

S. LA SALLE STREET

HAnover 2-2700

Liberty 2-5000

FRanklin 2-4500

Teletype NY 1-917

Teletype QS 452

Teletype CG 175

and

glamorous.

Spectacular market

gains were recorded by Epsco, Inc., D.S.Kennedy,
Milgo, Analogue Controls, Inc., Acoustica, Ampex
(which became listed later in the year), Ling
Electronics Radiation, Inc., Jarrell-Ash, PerkinElmer, High Voltage
these

All

Engineering, and Orradio.

trade in the Over-the-Counter

Market; and there were dozens more to choose
from. This will be a good section to watch again
in

1959,

new

Avon Products, Inc.

Semis 3ro. Bag

invite inquiries
on

the

following

Co.
Brown & Sharpe Manufacturing Company
Cameo, Incorporated

Citizens Life Insurance Company of

N. Y.

Consolidated Rendering Company

Continental Screw Company

Company, Inc.

The First National Bank of Jersey

City

FXR, Inc.
Hudson Pulp & Paper

Machiett Laboratories, Incorporated

Bank

Morningstar-Paisley, Inc.
National Aluminate Corporation
National Blankbook Company

Philips' Gloeilampenfabrieken (Philips Lamp)
River Brand Rice Mills, Inc.
Rock of

Ages Corporation

Rothmoor Corporation

Shulfon, Inc.
Siemens & Haiske A. G.

Speer Carbon Company

largest market is a great place for

beverages. You can buy stock in Anheuser

water

consider
Water

California

Service,

Water Service,

Northeast

Water

New

(Pfd.),

For

sportsmen there's quite a selection to be

made,

beginning with Los Angeles Turf Club
Anita Track) if price is no object, and

(Santa

including Eastern Racing Assn, Sports Arenas of
Del., Monmouth Park (N. J.) and Revere Racing.
Then there

are

interesting oil shares

—

Aztec

Oil, Canadian Superior, Colorado Oil and Gas,

Husky

Oil,

Producing Properties,

San Jacinto,

Ultramar Ltd. and Union Oil and Gas.
The

it]?

Busch.

Duffy-Mott (apple juice), Chock-Full O'Nuts (cof¬
fee), Pabst Brewing, Pepsi Cola Bottling, all Overthe-Counter; and if your taste runs to just plain

manufacturer of prefabricated
the largest Motel Chain,
HolidayHnns; the largest do-it-yourself carpentry
company, Skil Corp ; the largest service corporalargest

houses, National Homes;

'«»

logical

now.

General Waterworks and Ohio Water Service.

The Kerite Company
The Meadow Brook National

right

Why It's the World's Largest Market

York

Corp.

electronic companies will score

candidates for merger

The world's

Gary Chemicals, Inc.
Chemirad Corporation

The Duriron

as many

highs in earnings, and a number are

Number 5840

Volume 189

...

(1875)

The Commercial and Financial Chronicle

27
\

Approx. % Yield
No. ConQuotaBased on
secutive
12 Mos. to
tion
Paymts. to
Years Cash Dec. 31, 1 Dec. 31,
Dec. 31,
Divs. Paid
1958
1958
,1958
Cash Divs.

largest fire protec¬
tion company, Grinnell Co.; the largest lumber
company, Weyerhaeuser; the largest book pub¬
lisher, Macmillan; the largest publisher of
directories, R. R. Donnelley; the largest land
development company, Arvida—all these eminent
enterprises have their common stocks bought and

OVER-THE-COUNTER

sold in the Over-the-Counter Market and nowhere

DIVIDEND PAYERS

tion, American Express; the

Including
Extras for

TABLE I

Alabama

of Markets with

|3.91

5.6

2.00

3.1

0.40

2.25

4.7

1.00

9.1

,13

1.30

23%

5.5 /

*17

1.00

2.9

1.00

(San Antonio)

Over-the-Counter

Market

also

was

Albany & Vermont RR. Co.__
Local carrier

Inc.

Cash Divs.

■

Approx.

Including
No. Con-

Extras for

Quota-

secutive

to take over once again, when stocks such
F. L. Jacobs and E. L. Bruce were suspended

12 Mos. to

% Yield
Based on

tion

Years Cash

Dec.

Divs. Paid

31,

Paytnts. to
Dec. 31, Dec. 31,
1958

1958

Abbotts

Dairies, Inc

Retail

just can't get along without this broad¬
est, rangiest, most inclusive Over-the-Counter
Market—the only one not confined to exchange
floors and certain stipulated trading hours each
day.< And on the basis of quality, consider the
magnificent tabulation which follows of compa¬
nies of every industrial description, whose shares
have paid continuous dividends for from 5 to 175
years in a row.
That's the ultimate test of all
good securities — whether bonds or stocks — to
provide dependable income year after year

f0.96

2.3

and

war.

2.00

0.20

6.1

sporting goods

5.3

Electric

Corp..

12%

0.25

2.0

Process

1.00

4.5

al9

—

;

0.06

1.0

\ 2.40

1.3

180

fire and marine

(Hartford).

casualty

and

2.60

3.3

surety

Difference Between Listed and

Diversified

Aircraft

Following the tables appearing hereunder, we

3.40

1.60

1.4

241

present
listed

discourse

and

the difference between the

Over-the-Counter

benefit of those who

are

Market,

for

the

not conversant with how

the Over-the-Counter Market functions.

37%

4.3

Insurance

Radio

Communication

Corp
and

28%

0.80

2.8

0.90

22%

4.0

1.00

25%

4.0

American Air Filter Co.____

2.00

81%

2.5

f0.96

36%

2.6

*19

0.75

26%

ventilating equipment

Manufacturer paperboard,

Co.

0.65

3.6

carrier

Cement Corp.

American

cement and

2.9
-

paint

Commercial Barge

American

al8

1.00

4.8

1.95

2.6

*16

4.00

4.7

*34

f2.25

3.5

Telegraph

Co.
Electric protection

service*.

American Dredging Co
Dredging operations

American Druggists

(Cine.)

Insurance

Co.

Insurance

Fire

coverage

for

and

ex¬

druggists

only
*

not complete as to possible longer record.
for stock dividends, splits, etc.
'
Including predecessors. .
;
y, ,

Details

+ Adjusted
»

Details

record,

Including predecessors.

complete as to possible longer
t Adjusted for stock dividends, splits, etc.

BANK &

not

INSURANCE STOCKS

Specialists in

CHRISTIANA SECURITIES CO.
Preferred

Common

Inquiries invited in all Unlisted Issues

Trading Department, L. A. GIBBS, Manager

LAIRD,

BISSELL & MEEDS

MEMBERS: NEW YORK
AMERICAN

120

STOCK EXCHANGE
STOCK

EXCHANGE

BROADWAY, NEW YORK 5, N. Y.
Bell

Telephone BArclay 7-3500
PIIILA.

NAT L BANK BLDG.

Teletype NY 1-1248-49
44 WHITNEY AVE.
NEW HAVEN,

Continued

OVER-THE-COUNTER SECURITIES

DU PONT BUILDING

folding

boxes, corrugated and fibre
shipping containers

tended

Akron, Canton & Youngstown
Railroad

sand

Writes

navigation

equipment and accessories

Ohio

1.6

Corp..

Line

Agricultural Insurance Co—

Over-the-Counter Trading

markets

super

American District

Aetna Life Insurance Co.

(Hartford)

6.2

Markets,

Food

Inc
California

cement

Life, group, accident, health

•

f0.99

Beta

Manufactures

business

the Over-the-Counter Market!

32%

paper

insurance

marine,

2.00

and electric motors

American Box Board Co

Corp

Casualty & Surety Co.
(Hartford)

Aetna Insurance

*22

4.8
•

Medical supplies

and

Aetna

Casualty, surety,

•

Filters and miscellaneous heating

Golf

balls

Fire,

(Louis)

Generators

Gravel and

*22

rubber products and

Aeolian American

For fine investments, examine

Natural gas distributor

American Aggregates

electronic and electrical industries

Molded

Installment financing

Alpha

Ml'g. of Electronic & Electrical
equipment and transformers for

Acushnet

Finance

Allied

Aloe (A. S.)

Abrasives

through all the vicissitudes of politics, economics,
peace

Fitch

Abrasive & Metal Products..
Acme

Co., Class A
Portland cement

Allis

Abercrombie &

Cement

Portland

Allentown

Allied Gas Co

Dairy products

Publishing executive training
courses

upon

Dividend Continuity Unparalled

7.6

Alexander Hamilton Institute

hvhwwwhwwuhwwhuhhwwww

called

exchange listing.

Silk and nylon hosiery

Alamo National Bank

10 to 175 Years

number of her illustrious off¬

spring moving during the year, to exchange list¬
ing; Upjohn, Ampex, Champion Spark Plug,
Tennessee Gas and Transmission, to name a few.

from

Shipbuilding and repair

for

performed its traditional function as the Mother

Ship

Alba Hosiery Mills, Inc

Further, in 1958, the over-the-counter sector

The

Dock

Building Co.

Consecutive Cash

else.
»

Dry

CONN.

WILMINGTON, DEL.

PHILADELPHIA, PA.

10 WALDMANNSTRASSE

160 W. BROADWAY

225 S. STATE ST.

ZURICH, SWITZERLAND

SALEM, N. J.

DOVER, DEL.

page

The Commercial and Financial Chronicle

(1876)

Cash Divs.

Continued from, page 27

Approx.
% Yield

Including-

PROCRESSIVE AND PANORAMIC

—

Cash Divs.

Including
■'

/v./'

/■;;

Extras for

Quota-

12 Mos. to

Years Cash
Divs. Paid

Dec.

1958

Equitable

Fire,

marine,

surance,

multiple

Money

peril

401/2

orders;

—

cheques;
foreign remit¬

Manufacturer of

2.8

Forest

37%

4.3

10.98

29 J/4

3.4

Bronze

0.25

;

1.60

3.0
3.6

.1.20

1.25

0.50

0.20

5.9

0.60

1.4

Derrick—

1.40

7.8

Apco

1.20

20y4

5.9

Apex

1.65

631/2

2.6;

Arden Farms

Large variety of hospital supplies

American Insulator
moulders

Smelting

Corp

Dairy

0.80

products,

Electric

(Newark)..

1.30

Locker,
lockers

B._

0.30

public

Manufactures various

f 1.90

1.00

2.2

40%

;

2.5

0.24

1.3

12.00

250

2.00

utility

y0.89

26%

devices

and

Gas

6.00

420

1.4

American Pipe &

1.05

Atlantic
Ice,
Curb

1.45

Insurance

451/2

3.2

Service

"■Details

4.1

(The) of New York— 174

19.33

250

3.7

4(i.

page

—

Bond

1.60

2.7

'35"

Virginia (The)

1.00

4.2

Mortgage

financing

0.30

3.0

■' *

3.00

2.50

2.40

3.00

75%

1.88

67%

2.8

*23

0.35

91/4

3.8

Bankers

2.00

32%

6.1

Bankers

1.10

18v

6.1

*22

1.60

39% ;;

4.0

2.5

1.00

21%

4.7

0.60

1.25

5.0

Corp.__
financing

Shippers insur.—

8.1
?

3.8

•

Commercial

Industrial and Financial

'""Multiple line insurance
Bankers Trust Co., N. Y

4.0

Barnett National Bank of

Jacksonville
1

1.00

Bassctt

Furniture

Industries

1.00

0.625.

12%

y.... Complete line of domestic
furniture

5.9

Bates
and

5.0

E-Z

Manufacturing Co

.Baush Machine Tool Co...__
Drills and

51 /.

Manufacturers of

2.4

complete

as to possible longer record.
dividends, splits, etc.
.

...,

Bank

6.9;
.

1.6

0.74

1.10

25%

fO-57

pharmaceuticals

4.4;

holding corporation

/ Beauty Counselors,

Inc
and

2.0

toilet

preparations

Belknap Hardware & Mfg.—
Hardware

13%

6.4

0.85

y0.49

12%

3.8

3.00

6.8

2.00

31%

6.4

1.60

4.1

furniture

b0.55

15%

3.6

9.00

wholesaler

Bell & Gossett Co..

FAST SERVICE

boring mills

Baxter Laboratories, Inc
1.20

6.7

/' Cotton and rayon fabrics

Wholesaler: Cosmetic

FOR

2.9

109

Inc.

stock

5.5
2.9

COMMON¬

Baystate Corp.
not

21%
45

1.325

(DETROIT

Delaware

Mortgage

Stores

t Adjusted for

fl.18

Bankers Building Corp

•

Atlantic National Bank
of Jacksonville

longer record,
etc.

construction

175

5.7

•

Details not complete as to possiblo
t Adjusted for stock dividends,
splits,

and

THE

See Bank's

*14

Corp

storage

4.3

•"

-.'.Chicago office building

Light

cold

41%

Guaranty Co. of America.

Company

coal,

1.80

5.2
:

—

Bankers

Sewerage service

3.1

26
.

of the Southwest Na¬
tional Association, Houston

con¬

Atlantic City Sewerage Co.—

33%

Bank

Operating public utility

Boileri, tanks, pipelines

3.3
"

36%

5.00

liqueurs

Spring

Bank of

/ 4.50

3.4

3.40

1.90

162

•

Georgia carrier

2.5

Diversified

4.4

Atlanta & West Point RR. Co.

American National Bank and
Trust Co. of Chicago
Construc'n

22%

wiring

Associated

4.8

Amer. Natl. Bank & Trust Co.

(Chattanooga)

1.00

utility

Liqueurs Corp

Atlanta
25

American Re-Insurance

gas

and

2.2
1

Bank

2.8

Precision springs

Denver

42%

fl.59

Bank

-; .•» ^

Office furniture

Bank

gas

and

Cordials

Insurance

National

and

Art Metal Construction Co.—

American Motorists Insurance

American

trols

Arrow

...

■

1.18

13%

America—

design

WEALTH

•

Electric Co.
Electric

building materials

Company

->•
39

0.30

California, N. A

MICH.)

Arrow-Hart & Hegeman

corn

Paints, chemicals, resins, metal
powders,
household
products,

Diversified

meats,

Service

BANK

Natural gas public utility, produc¬
tion and transmission

products

and

groceries,

Public

Arkansas Western Gas Co

ter-.

American-Marietta Co

5.4

9.2

31/4

minals

American Maize Products

5.4

18%

Arkansas-Missouri Power Co. *22
Electric

Class

36%

1.00

"y "

Building & Equipment

Corp.
Bank

2.00

5.0

4.00

largest bank

Building

4.8

Diversified insurance *

Maintains

1.9

Bank

Arizona

materials

American Insur.

4.9

27'""

;

! 3.8

Bank of Amer. NT&SA

mfg.

Operating public utility

7.1'

Bangor Hydro-Electric Co.__

1.50

retail

Detroit real estate

-.Nation's

smelting

etc.

6.4

121/2

plastic

wholesaler,

5.4 '

wrenches

Aluminum

Hospital Supply..

—

22%

0.10

5.6

•

etc.

1.20

Sulphite pulp and paper

mechanical

and

paints,

BancOhio Corp.

21%

1.00

3.7

1.05

5.6
•■

5.4

■

Holding company—banks

Mossberg Co

Tools

■

Ansul Chemical Co
Chemical

0.90

store

Badger Paper Mills

variety of traps

Felt—

fl.19

Stores, Inc.

6.6

11%

1.7

dept.

1.00

0.80

6.2

Detroit real estate

Casualty Insurance

casualty insurance

Manufacturer,

•

19%

f 1.39

Indianapolis

Foods, Inc

Bagley Building Corp

Co. of America

4.8

-■

toiletries

Animal Trap

7.0

'•

2.7,

1.20

Badger Paint & Hardware

■•'/•••'••''<•

Insurance Co.

0.40

B. M. I. Corp

53%

0.70

3.6

Restaurant chain

alloys and products

and

Large

General Insur. Co.

'•

;

33%-:

Newfoundland

and

Operates

B/G

5.5

Beer and other products

Hoists, cranes, cargo equipment

Anheuser Busch Inc.—

Furniture

American Hoist &

••

1.20

loans

Mills

Cosmetics

27% I-

1958

■

personal

Telephone Co

1.50

1958

Ayres (L. S.) & Co
-

Dec. 31,

31, " Dec. 31,

1958

Cotton fabrics and yarns

4.3

Banking Corp..,-

financing &

Avondale

3.5

20%

Paymts. to

_■

—

Avon Products

0.90

Products

Paul)

Fire

2.5

Miscellaneous hair & felt products

cement

6.9

—

(St.

American Hair &

American

Thermos

430

•"

Ampco Metal, Inc

Large furniture manufacturer

Custom

suretyship

Amicable Life

hardware

American

Surety

•

15.00

tlorv

Dec.

Divs. Paid

Insurance

Operates in

Anchor Casualty Co.

Manufactures automotive

and

6.1

American Trust Co.

Products

American Forging & Socket.

and

Auto

stamping

12 Mos. to

'''•

■

Automobile

Life Insurance

containers

Fire

and

:•

Investments, automobile financing

;

0.90 -y

Great Lakes

and

0.375

•

Avalon

Sewer pipe, bricks, tile

1.60

Manufacturers and distributors of
forest
products and
corrugated

American

parts

;

secutive

Years Cash

Auto Finance Co

forms

American Vitrified Products47

Corp.

American

Holly,

Steamship Co._

American

(Indian¬

—

; >

2.4

Approx.
% Yield
Based on

■

\
*

-r*

•

1958

Quota-

Including

Dec.'3i,

Extras for

^
"

(San Francisco)
National

Bank & Trust Co.

American

steel

1.20

Paymts. to

1958

forged

Vacuum ware manufacturer

0.25

;

12
and wire

Freighters

felt

Fletcher

apolis)

cold

Co.
20

tion

31/- Dec. 31;

1958

Inc.
Springs

American Felt Co
American

3.4'

58'/4

Dec.

Divs. Paid

•

Co._

Spring

Insurance

2.00

• •

fastener*

American
89

travelers'

foreign shipping;
tances; credit cards

threaded

American

4.7

in¬

Manufacluer of

Pressed

1.90

and allied lines

American Express

Screw

American
25

American Stamping Co

Assurance

Co. of New York

■-

American

1958

Amer.

Paymts. to
Dec. 31,
Dec. 31,

31,

011

'■

tion

Based

% Yield

No- Con¬

Years Cash
'

Approx.

secutive

■

12 Mos. to

secutivc

•

THE OVER-THE-COUNTER MARKET

Quota-Based

Cash Divs.
No. Con-

No. Ccii-" Extras for

Thursday, April 23, 1959

...

Pumps, tanks and valves

4.,

Belmont Iron Works
Designer,

fabricator

^tniofural

■Belt RR.

erector.

Stock

livestock

Yards

terminal

mkt.

Bemis Bro. Bag Co
Manufacturer
and

cfnpl

Operates

and

plastic

Beneficial

textile

paper,

bags

Corp.

Holding

company affiliate of
Beneficial Finance Company

Benjamin Franklin Hotel Co.
Philadelphia hotel
Berks County Trust Co.

5.3

170

(Reading, Pa.)
Berkshire Gas Co

—

23
,

1.10

23%

4.7

1.00

20%

4.9;

Operating gas public utility

Bessemer

Limestone

Ce-

ment Co

2.50

4.4

2.00

35%

5.7,

Co.

5.00

97^

1—_

1.75

7.0

19%

3.6,

"Portland" cement

Bibb Mfg. Co
Textile

manufacturer

Cotton

goods;

sheeting,

Biddeford & Saco

etc.

Water

5.2

Operating public utility

Bird Machine Co
Machinery for

Bird

paper

mills

Son

0.70

Asphalt shingles

Birmingham
Bank

National

Trust

(Birmingham, Ala.)

t0-r'7

1.9

1.00

6.3

1.44

31%

4.5

a30

Black-Clawson Company

1.40

24%

1.45

Makes paper and pulp mill

equipment

Black Hills Power & Light—
*

Operating public utility

Black, Sivalls & Bryson.

CALL

Oil and gas equipment, steel
ucts

TROSTER, SINGER
NEW YORK CITY

& CO.

and control valves

<■

Pouch"

Details

not

complete

.01

6.3

possible longer record.
splits, etc.

dividends,

Including predecessors.

b Plus

chewing tobacco

t Adjusted for stock
a

5.8

Bloch Brothers Tobacco Co._
"Mail

prod¬
i

share Continental Motor Coach Lines common

share held.

for eacn

Volume 189

Number 5840

Cash Divs.

THE OVER-THE-COUNTER MARKET

secutive

Including

No. Con-

Extras for

secutive

12 Mos. to

Years Cash

Dec.

Divs. Paid

v/.: ' .7
Blue Bell,
'

•

■

Years Cash

Dec. 31,

Dec. 31,
1958

0.80

35
work

and

3.00

Bornot, Inc. i—„.r^31
Chain of dry cleaning
—
v
,

Establishments

7
7;::i

Boyertown Burial Casket
funeral

4.00

-7.'',
29

supplies

water to several
<-

service

car

' "

—

0.60

Public

5.5

Glass containers

Co.__

17%

0.95

2.0

0.65

hosiery and

0.30

Brooklyn

and operate two
garden apartments -

underwear

Brown & Sharpe Mfg
'

4.0

51%

3.5

f0.84

1.80

Brunswig Drug Co

0.20

5.0

6teel

oil

0.11

6.3

presses

1.80

42%

4.2

6.00

245

2.4

2.20

fl.77

46%

4.7

2.6

3.00

1.00

24%

4.0

Bank of S. C.

(Cinn.)—

22.

2.80

3.8

1.00

21%

4.7

Public

2.25

61%

3.7

7"1.49

.46%

3.2

utility

—

4.1

1.00

23%

4.2

3.00

3.3

1.00

27%

3.6

31
21

(Chicago)

—

City Nat. Bank & Trust Co.

0.60

8.6

0.30

5.5

City National Bank & Tr. Co.
(Kansas City)
*31

5.25

6.6

City Title Insurance Co

2.00

(Columbus, Ohio)

Title

0.80

117

0.7

0.40

5.7

Insurance

City Trust Co. (Bridgeport,
22

23%

0.75

3.2

■

•*

4.4

0.50

1,ft

0.30

12%

2.4

0.10

10%

0.9

Cleveland Builders Supply—
7

1.40

6.00

—al05

Conn.)

hydraulic

Manufacturers and distributors

3.00

6.3

2.00 '

3.8

5.00

32%

15.5

Cleveland Trust

trench excavators

15%

(A. B.) Co

Manufacturing products for Utility

' "

25%

1.20
'

building materials

4.8
7

•

Cleveland Quarries Co.

Line Construction <fc Maintenance

Gate valves,

7.1

4.3

'
..

W. Va. bus

- -—

Building and refractory stone

Cleveland Trencher Co.

fire hydrants

operations

Manufacturer of mechanical -

24
..V

,' s

}

111

2.40

comnlete

not

-t Adjusted for stock

4.1

Details

' *■

»'

•

•,

•

0.6

"7,

insurance

Butler Manufacturing Co

products

if'.

2.00
.

•

42%

4.7

Butlers, Inc.

Over-the-Counter Securities

0.60

4.4

8.3

chain

Calaveras Land & Timber

2.00

California Bank (L. A.;

2.00

69%

2.9

California Oregon Power—

1.60

35%

4.5

2.50

3.7

1.60

33 %

4.8

3.50

Corp.
timber

lands

California Pacific
surance
Title

Title

In¬

Co.

Utilities—

Operating public utility

California Portland
Cement

Cement-

Securities

Industrial Securities

selected issues cf.

and lime products

2.40

48%

4.9

Railroad Securities

1.20

24%

4.8

Canadian Securities

California Water Service Co.
Public

2.5

138

Public Utility

trading markets

insurance

California-Pacific

Bank and Insurance Stocks

IFt maintain

public utility

Operating

fl-43

utility-water

California Water &

Telephone Co
Operating public utility

California-Western States
Life

Insurance

-Life, accident & health insurance

H2
7

Camden Refrigerating & Ter¬
Cold

storage,

0.50

*13

1.25

0.45

8.00

warehouse

1.80

9.00

2.00

business

1.3

minals Co.

,»

Campbell Taggart Associated

Bakeries, Inc.
Bakery

Cannon

4.0

f he-

chain

Shoe

Operation retail shoe stores
manufacturing of shoes
-

8.2

and

EIRST BOSTON

Carolina Telephone and Tele¬

graph Company

154

5.2

CORPORATION

Operates telephone exchanges

Carpenter Paper Co
Distributor

paper

and

38%

4.7

paper

Underwriter

products

Carter

(William)

—

215

Carthage Mills, Inc
Felt

+
a

base

floor

7.4

coverings

Details

not complete as to possible longer
Adjusted for stock dividends, splits, etc.

Including predecessors.

Distributor

•

Dealer

4.2

Underwear

New York
Philadelphia

record.

Boston

•

Pittsburgh

San Francisco

Chicago
Cleveland

1.8

Continued

335

record.

dividends, splits, etc.

Including predecessors.

■

to possible longer

<■

40%

f0.24

■■«

not. complete

possible longer record.'
t Adjusted for stock dividends, splits, etc.

•>

•'

health

♦Details

4.2

;

Co.——

Chase Manhattan Bank

•

1.00

green-

of America

California

3.7

(Los

utility

1.10

•<

shoe

City National Bank & Tr. Co.

Chapman Valve Mfg. Co

■

Southern

1.60

(Charleston)

Charleston Natl. Bk. (W. Va.)

Business Men's Assurance Co.

Metal

2.8

Citizens Utilities Co., CI. B__

—7

and

Bank

(Savannah)

Charleston Transit Co.

•'

accident

Citizens & Southern National

4.5

2.00

houses

Life,

2.25

Citizens & Southern National
Bank

National

50%

;

radiators,

Sav¬

Angeles)

;

5.4

Citizens

2.25

Chance

Corp.

boilers,

5.8

Bank (Los Angeles)
Name was changed in Feb. 1959

5.1

ceil¬
ing, recording and controlling in-

Mfrs.

34%

(Louisville)

Industrial acoustics, radiant
•truments

2.00

Citizens Natl. Trust & Savings

29%

■

stores

Brewing of beer

Burnham

4.5

3.2

ings Bank (Flint, Mich.)—

1.50

Burgermeister Brewing Corp. al9

Bujrgess-Manning

14,200

company

3.5

.7 27
specialty

Bullock's Inc
and

Secur.

17%

Poconos

Production of steel castings

2.00

450.00

manufacturer

yarn

0.60

*34 -

Buckeye Steel Castings Co.—„ 22

Department

4.2

Circle Theatre Co.7

•

Forging hammers,

producer

Buck Hills Falls Co
Hotel

5.5

Chambersburg Engineering—

25%

improved real estate

forgings

Buck Creek Oil Co

1.00

1.40

131

Ownership and rental of

Corp.

5.3

Citizens Fidelity Bank & Tr.

Co.

Investment trust

4.6

Christiana

Citizens Commercial &

Chain Store Real Estate Trust

Buchanan Steel Products

5.00

*33

China Grove Cotton Mills Co.

3.2

Operates warehouse in Albany

Wholesale drugs

Bryn Mawr Trust Co. (Pa.)--'

0.40

Real estate holding company

Co.

Central West

5.4

5.0-

Holding

Central Warehouse Corp.,
Class A

4.5

—

■

26%

1.20

*23

Machine tools

magazines

51%

National Bank

gas

6.3

23%

Corp.

Electric and

1.25

15%

processing and distribution

Service

8.3

2.50

5.2

1.65

Central Vermont Public

Brown-Durrell Co.

0.80

Combed

Power Co

Central Trust Co.

5.9

102

6.00

Telephone service

;

■>

utility

Central Telephone

•

boxes

Chilton Co.

3.5

livestock feed

Metal

Own

36%

fl,28

Soybean processing and mixing

5.4

2.6

Chicago Title & Trust Co

•

Central Soya

ments, Inc

Crude

Co.——

Central Steel & Wire Co

Brooklyn Garden Apart-

Manufacturing

(Philadelphia)

4.6

239

11.00

Operating public utility

"Gordon"

electric

190

•

Publisher of business

public utility

gas

145

5.00

—

■

Gas

7.50

building

Chicago Molded Products
Corp.
;

4.7

5.2

Plastic molders

Trust Co. (Des Moines)—

3.6

112

4.00

—81

Brockway Glass Co

1.50

moulded

•

Central-Penn

business-

Brockton Taunton Gas

Wood

Central National Bank of

trust

page 45.

26
Makes

—

ing Corp

Central National Bank &

loans

Mortgage

4.4

Office

Cleveland

other than life

1.35

Chicago Mill & Lumber

Sec Company's.advertisement

Central Maine

4.8

Assurance

Company
Insurance

0.975

4.0

Chicago City Bk. & Trust Co..
Chicago Medical Arts Build¬

—

58%

110

Quincy RR. Co.
Midwest carrier

Electric, gas and water utility

37%

1.80

Metal fabricator

British Mortgage &
Trust Co. (Ont.)

5.6

2.325

Bank?.

Operating telephone company

states

Natural

Bristol Brass
British-America

Central Louisiana Elec. Co.—

■

1.50

■

Brinks, Incorporated
Armored

1.675

•

4.6.

Exch.

Chicago, Burlington &

—

Central Indiana

3.3
5.0

30
33%

1.00

communities

3.5

basis

Corn

Telephone Corp.

3.9

28%

Chenango & Unadilla

Operating public utility

Banking & Trust Co.
(Wilson, N. C.)
59
Bridgeport Hydraulic Co._—_V 69
Connecticut

1.00

Central Illinois Elec. & Gas.

Branch

Supplies

fO-78

Co.___

ELECTRIC

CO.

Paperboards
products

v•

Voting

5.0

royalty

Storage

0.16

Woolen blankets

Central Fibre Products Co.,-

0.95

•

'
6.7

•'

31,

1958

Manufacturing Co.,

Chemical

Electric & gas utility and through
telephone service in

5.6

' 4-'

t. 51
'

5.2

subsidiaries

5.2

6V4

0.35

-34

—

Yards

34 V2

38%

*13

mines

several

Operating public utility

Miscellaneous

GAS

1.80

2.00

Chatham

6.5

Bank & Trust Co.

CENTRAL

1.0

Corp.-

Refrigeration

Louisville stockyards

Apartments

Central Cold

life

Bound Brook Water Co
Stock

0.10

„

than

other

Central

Leases

4.5

2.8

■'

Insurance

Bourbon

Dec.

% Yield
-Quota- Based on.,
■
tion
Paymts.tn >
Dec. 31, Dec. 31,
1958
• 1958
«.

1.75

Owning and operating apartment
house (Washington, D. C.)

(Denver)

7.7

Book publisher

Insurance

3.5

0.50

Cash

Divs. Paid

Central Coal & Coke Corp—

Inc._^___r^18r'

Bobbs-Merrill Co.

•.

•

Boatmen's Natl. Bk. St. Louis ;'87

Years

Class A

Cavalier

1958

.23

12 Mos. to

1958

Plywood

play

Extras for

secutive

Paymts. to
Dec. 31,

1958

Cascades Plywood Corp

Dec. 31,

1958

/7,.

clothes

Boston

tion

Dec. 31/

31,

1958

Inc..

Manufacturer

Quota-

tion

No. Con-

Approx.
% Yield
Based on
Payrats. to

:■?

12 Mos. to

Based

Quota-

Divs. Paid

Cash Divs.

Including

% Yield

Extras for

APProf.

Cash Divs.

Approx.

Including
No. Con-

PROGRESSIVE AND PANORAMIC

—

(1877)

Financial Chronicle

The Commercial and

...

- »
' * *
on page 30

The Commercial and Financial Chronicle..

(1878)

Cash Divs.

Continued

from page 29

THE OVER-THE-COUNTER MARKET
Approx.
% Yield

Life,

accident

ance

(group and individual)

Extras for

Quota-

secutive

12 Mos. to

tion

Dec.

Divs. Paid

31, ' Dec. 31,

1958

Based

Paymts. to
Dec. 31,

1958

Coca-Cola (Los Angeles)..

1.60

•

1.00

21%

4.7

4.4

2.00

36%

5.5

insulated

Life

Insurance

food

life

1.00
1.10

0.7

145

Southeast

operating

electric

public

Natural gae

0.25

1.36

3.5

1.25

2.3

55%

1.40

5.4

2.00

(K. C.)

3.00

(Nashville)

Commercial Banking Corp...

1.00

0.60

7.5

0.30

2.3

Bank

1.00

5.3

Wire

3.00

5.6

30.00

725

m3.50

2.00

2.80

0.20

Co. (Ky.)

8.0

35%

3.4

0.20

0.7

27%

1.60

1.20

171

6.00

6.5

2.40

41%

5.8

fO.58

cl.40

110

1.3

National

cold

headed

5.4

■

0.175

in¬

Properties Co

1.60

2.5

2.00

5.6

1.00

26%

6.1

0.30

1.6

1.23

4.9

4.00

69%

5.8

a4.9

Railroad

1.20

29%

4.1

1.00

3.7

Co
by P.R.R.

Co
and

auto

type

Supply (N. Y.)
teeth

other

and

Natl. Bank

Denver

dental

(Denver)

United

States

Na¬

Bank.

Denver

Union Stock Yard Co.
stockyards

National Bank

f3.90

114%

0.15

35%

Formed Dec. 31, 1958 via merger
of
Denver
National
Bank
and

3.4
0.4

United

States

National

Bank

Denver.

0.55

16%

3.4

Detrex Chemical

Industries,

Inc.

Chemicals,

equipment and ultra¬

5.3

sonics

tubes and rubber parts

paperboard A containers

10.49

34%

0.60

13 %

4.5

2.00

5.6

0.75

16 %

4.6

Over-The-Counter Consecutive Cash Dividend

1.4

Payers From 5 to 10 Years Appear in the
Second Table

Starting

Page 47.

refrigerating

Knowles

Corp.

Detroit Aluminum & Brass— *13

dyestuffs, packaging equip¬

Crown Life Insurance Co
accident and sickness;

2.30

150

1.5

not complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.
mPlus a 17VL?<> .etock dividend paid on Feb. 1, 1958.

50%

3.7

Tunnel—

1.00

16%

6.2

0.80

17%

4.6

1.15

6.1

0.075

International

operates

Detroit Harvester Co
Details

not

complete

to possible longer record,
splits, etc.

Mfr.

t Adjusted for stock dividends,
c

5.8

1.85

tunnel

4.6

•Details

and

Owns

Trust

Detroit & Canada

also

0.55

Co.__

and bushings

Bearings

Detroit Bank

annuities

*12

See

1.00

Life,

1.80

13%

4.5

Denver United States

ment and reinforced plastics

instruments

145

6.3

060

equipment

tional

lanterns

Denver

and

Looms,

Top manufacturer of band

Connecticut Bank & Tr. Co.

supplies

8.8

Crompton

3.5

16%

1.0

6.00

machines and farm coolers

Operating public utility

Conn (G. C.), Ltd

15%

Corp

Dempster Mill Manufacturing

equipment

Food processing and

York Pa., hotel

Concord Elect. (New Eng.)..

Coal

and operated

Hand

0.7

Creamery Package Mfg. Co—

2.7

fO.96

0.15

castings

Electric

Mfg. industrial chemicals

Community Hotel Co. (Pa.).

Monte

Delta

2.6

Cowles Chemical

Commonwealth Trust Co. of

4.7

Real estate

Farm

Wall &

18
accident

10%

dustrial fasteners

Dentist's

County Trust (White Plains) *55

health)

0.50

5.3

switches, bicycle lamps and horns

1.20

Cornell Paperboard Products

Insur¬

4.7

Manufacturer

Leased

3.00

5.8

0.35

Auto financing
Decker Nut Manufacturing

7.8

Tires

0.80

& Co

Delaware

Corduroy Rubber Co

Title Insurance

steel

ana

Operating

communication

Bituminous coal

Del

25y2

paper

Co.

4.8

facilities

Bardelebon

Dean

Refrigerators and air conditioning

4.0

87%

iron

4.1

fer¬

Copeland Refrigeration Corp.
54

Commonwealth Land Title

(no

5.3

Co..

Cook Electric Co

Commercial Trust Co. of New

Insurance

transit

Artificial

Trust

12%

cabinets

Corp.

Chicago

Pressed metal products, hydraulic
oil equipment and forgings

Jersey (Jersey City)

and

0.60

Manufacturing display equipment

Diversified Insurance

financing

Commercial Shear, & Stamp.

Life

3.15

*34

Continental Illinois

Dealer financing

Commercial Discount Corp...

ance

6.2

—

Continental Casualty Co

2.3

1-5

Dayton Malleable Iron Co

Life, accident and health

Commerce Union Bank

64%

mouldings,

Transit

Local

theatre chain

Participating life
Continental Assurance

'3.2

94%

f0.95

7.2

engines

gas

Darling (L. A.) Co

railroad equipment patents

Insurance Co.

1.5

130

8.5

0.60

Continental American Life
17

Life

22%

products

Life, accident and health

Commonwealth

C '

Manufactures paper and

mixes for

Commercial

1.40

Canadian

1958

8.00

suits and overcoats

Doors,

Consol. Water Pwr. & Paper

Columbian National Life In¬

Commerce Trust

8.0

Consolidated Theatres, Ltd.,
Class B

1958

Paymts. to
Dec. 31,

Dahlstrom Metallic Door Co.

6.2

Products

grease, meat scrap,
tilizers, hides and skins

baking
surance

buildings In Chicago

Tallow,

transmission

Flour and prepared

1.75
0.20

Consolidated Rendering

8.3

utility

Colorado Milling & Elevator

Holding company, diverse Interests

Colorado Interstate Gas Co-

4.8

44.

warehousing

Consolidated Naval Stores

Wall coverings

Colorado Central Power Co¬

16%

Newark

Owns

4.3

25%

and Midwest

Color-Craft Products, Inc

page

Corp.

Insurance

stores

0.80

Consolidated Metal
13

Non-participating

office

31,

Cummins Engine Co

4.2

Men's

Printers, Inc.—

Department store chain

Co.

....

24%

Diesel and

Consolidated Dry Goods Co..

of America

Retail

and

Curlee Clothing Co.

Consolidated Dearborn

wire

1.025

printing
A

tion

Dec.

31,

Operating public utility

0.6

Dallas

Sale of ice A oil,

Based

Operating public Utility

Commercial

4.9

361

NATIONAL

See Bank's advertisement

Owns

cable

Colonial

12%
90

2.00

Quota-

Connohio, Inc.

cutting Implements

Manufacturer
and

0.60

4.00

Farm and

31
;:44

Dec.

Divs. Paid

(BRIDGEPORT,

Connecticut

5.0

Years Casb

Operating public utility

Operates livestock yards

Coca-Cola (New York)

12 Mos. to

1958

Cumberland Gas Corp

CONN.)

8.6

Extras for

secutive

Paymts. to
Dec. 31,

1958

No. Con-

insur¬

Connecticut Light & Power.

BANK

Cleveland Union Stock Yards
0.625

81
health

and

CONNECTICUT

tion

Dec. 31,

1958

Approx.
% Yield

Including

Cuban Telephone

Insurance Co.

Including
No. Con-

31,

Based

Connecticut General Life

Cash Divs.

Years Cash

Dec.

Divs. Paid

Quota-

PROGRESSIVE AND PANORAMIC

Coca-Cola (St. Louis)

12 Mos. to

Years Cash

Cash Divs.

% Yield

Extras for

secutive

Approx.

Including
No. Con-

.Thursday, April 23,vr059

Plus

one

United

States

Life

Insurance

25 shares held.

Co.

for

each

auto

parts,

farm equipment

and power lawn mowers

Detroit International Bridge.
Operates bridge to Windsor

Detroit Mortgage & Realty
Co.

Real estate

For Banks,

Detroit

Brokers, Dealers only

3.5

6.0

metal parts

0.70

21%

1.00

3.6

Stamping Co

Pressed

financing

1.40

23%

4.2

48%,

2.5

A specialties

Diamond Portland

Cement..

Manufacturer of Portland Cement

If it's Over-the-Counter

Dickey (W. S.) Clay Mfg. Co.

Sewer and culvert pipes,

Your Customers Get Better Service When You

tiles

Dictaphone Corp.
and

Manufacture

and

makes

primary markets

home

Dealers

than

400

OVER-

THE-COUNTER securities.

sale

"HANSEATIC"

through

nationwide

private wire
and financial institutions
"HANSEATIC'S"
knows

how to

your

correspondents

offices,

system^ reaches
almoslfinstantly.

large,

serve

branch

over

and

500 brokers, dealers

1.1

0.05

32.00

1.20

t0.975

3.20
fO.77

100

*36%

2.J

*26

0.85

3.3

2.00

*23

1.40

5.6

fO.78

3.3

fl.23

29%

4.1

n2.00

40%

4.Sf

York

210

15,2
"

8. Treasury securibankers acceptances

Dixon (Joseph)

its

-4%

Dicto¬

In U.

ties and

Lead

•communications
systems,
fire alarm systems, Acousand Monarch hearing aids

graph
ticon

"HANSEATIC"

•

and

Manufacture

Discount Corp. of New
1,

Dictograph Products Co. Inc.

Because:

Dicta¬

phone, dictating, recording
transcribing machines

Try "HANSEATIC"

fl.19

sale

pencils

Crucible Co.

and

5.8

graphite

all

20 %

-4
*

products

Dobbs

Houses, Inc..

£4%

2.8

Restaurant and airline catering

Dollar

experienced Trading
OTC requirements.

Department

really

Savings & Trust Co.
(Youngstown)
Donnelley (R. R.) & Sons...
—

3.£

Largest commercial printer in

Next time you lieed maximum OVER-THE-COUNTER service,

why not Try "HANSEATIC"?

United

Established 1920

Corp.
engineering
equipment

Heavy
rine

Drexel

NEW YORK

Furniture

projects,

Natl. Bk.

Drovers

5, N. Y.

(Chicago)

Ducommun Metals &

Supply

Telephone: WOrth 4-2300
•

Distributors

Teletype: NY 140-1-2

CHICAGO

•

PHILADELPHIA

•

SAN

FRANCISCO

metals,

Duff-Norton
Industrial

Direct Private Wires to:

and

tools

industrial supplies

- „•

Co.

Jacks and lifting equip-

ment
■

■

Boston, Chicago, Cleveland, Houston, Los Angeles,
Philadelphia, Pittsburgh,
Providence, San Antonio, St, Louis, San Francisco

3.7

ma¬

Furniture manufacturer

Associate Member American Stock
Exchange

BOSTON

Manufactures soybean and house¬
hold products
/

Dravo

•

Co.

Drackett

New York Hanseatic Corporation
120 BROADWAY

States

t ;

•

Details

not

complete as to possible longer recoro.
t Adjusted for stock dividends, splits, etc.

a
n

Including predecessors
Company actuaUy paid
out

1957

;!
;

$2.60 but

60c

paid on Jan. 3,

1958 Was

profits,

■

„

;

Continued

on page

Number 5840

Volume 189

...

Continued

Coast Exch. Extends
1

•'/

No. Con'

Pa¬
leased

expanding

spread across
from 61 to

has

network
and

West

grown

increase of
64%.
It is the largest regional
securities exchange ticker service
network in existence. During the
subscribers, ^an

100

past 12 months this growing

net¬

work has crossed the Oregon

line

with the installation of its tickers

Medford, Eugene and
Salem.
It has moved eastward
over
the Rockies into Colorado
and installed its ticker service in

in Portland,

Denver.
;

.■'/.■■■'V

cities where

recent

Other

cific's tickers have been

Divs. Paid

min¬
by minute changes in the 550

Pacific's ticker brings the
stocks traded on the Pacific

Coast

Stock Exchange as well as

Pacif¬

high, low and
last hourly on the 10 most actively
traded stocks on Pacific; bids or
ic's hourly volume;

1958

1.80

45*4

4.0

1.00

ceramic

1.00

19%

5.1

Oil and gas

0.50

13%

3.6

utilities on a half-hourly basis;
Standard and Poor's averages

hourly and daily X-D announce¬

4.1

2.00

36%

5.5

1.10

15%

7.1

1.20

4.6

0.45

6.00

8.3

1.35

5.2

0.90

1.5

Federal Chemical Co

Assn

18:

0.30

Utilities Associates—

Holding company,
public utilities

6.5

2.20

39%

5.5

4.50

0.75

6.4

6.3
3.5

Screws and machines

jO-T7

22%

3.4

1.00

13%

7.5

2.50

42%

5.9

Ltd.

(Bahamas)

and

tires,

steel

tl.36

4.70

4.9

1.45

331/4

4.4

Michigan ntwspapers

Federation

Holding co.—brewing Interests

Edgewater Steel Co
rolled

Federated Publications, Inc.-

Ecuadorian Corp.,

Works

Federal Sign & Signal Corp.
Electric signs, sirens, lights, traf¬
fic and highway signs

Economics Laboratory, Inc

Multiple line Insurance

Federal Screw

social
stationery,
typewriter paper, social and busi¬
books

Compress & Warehouse

Federal Insurance

Manufactures
record

Co.

railroad

Bank

and

Trust

(New York)

Fidelity-Baltimore Natl. Bk.

steel rings and

2.00

3.9

0.80

16%

4.8

Fidelity-Philadelphia Trust

4.25

87%

4.9

0.50

2.5

Fidelity Trust Co. (Pgh.)—

3,50

3.9

Fidelity Union Tr. (Newark)

f2.97

71%

4.2

Fifth-Third Un. Tr. (Cinn.)-

2.40

55%

4.3

(Baltimore) J

forglngs

Edison Sault Electric Co
Electric utility

Egry Register Co.
Autagrahic registers
El Paso Electric Co

1.00

35%

2.8

Public utility

El Paso Natl.

7.1

Cotton compress and warehousing

England

Eaton Paper Corp

...

Fertilisers

Fed.

14.

New

Chain of retail bake shops»

production

Racing

wheels

3.00

diesel locomotives,
machinery
and
lawnand saw sharpeners

Federal Bake Shops, Inc

Suffolk Downs

Miscel. rubber goods, sponges

resistant equipment

Eason Oil Co

mower

5.3

Co.

Circle

5.4

Bank

Fate-Root-Heath Co

•

ness

of heavy machinery

Mfrs.

-.\'r

Manufactur-

ing Co., Class B

Eastern

1.50

Manufactures

Electric

Eastern

Merchants

Long Beach (Calif.)..
Farrel-Birmingham Co

publications

Corrosion

Credit and marketing reports and

Duriron

f2.69

Farmers

1958

Bradstreet Inc

Duncan

Bank

(Texas)

2.40

4.3

Electric Hose & Rubber Co.—

1.50

4.4

t Adjusted for

2.05

36%

5.6

0.60

13%

4.6

1.60

3.9

2.00

46%

4.3

1.60

47%

3.4

0.30

3.6

Details

not

complete as to possible longer record,
stock dividends, splits, etc.

Rubber hose

Electrical Products Consol—

Continued

page

Electrical signs

Electro Refractories & Abra¬
sives Corp
Manufacturer of crucibles, refrac¬

offers of blocks of stock; averages

industrials, 20 rails and

Operating public utility

Paymts. to
Dec. 31, Dec. 31,
tion

■

installed

few months include
Beverly Hills, Hanford. Long Beach, Los Angeles,
Palm Springs, Riverside, Sacra¬
mento, San Jose, Santa Ana, Santa
Barbara, Sherman Oaks, Stock¬
ton, Ukiah, Vista, San Francisco
(Chinatown), Corona del Mar, San
Bernardino, Visalia and San Diego.

of 30

Quota-

1958

3.3

*50

Fall River Gas Co

Chemical compound manufacturers

■.

Pa¬

in the past
Bakersfield,

ute

Extras for

12 Mos. to
Years Cash
Dec. 31,

Paymts. to
Dec 31,
1951

31,

Manufacturer of ball bearings

Approx.
% Yield
Based on

j,"\secutive

-<•

Founded just one year ago,

the

Dun &

rapidly

Cash Divs.
Including

..."
.•

Curtis.

wire

Based on

tion

Dec.

Dec. 31,
1958

wire
ticker service by welcoming its
hundredth subscriber—the Santa
Monica Branch Office of member
firm Paine, Webber, Jackson &

cific's

Years Cash

PROGRESSIVE AND PANORAMIC

Quota-

12 Mos. to

Divs. Paid

First

change is celebrating the
Anniversary of its leased

Including

Extras for

secutive

THE OVER-THE-COUNTER MARKET

Ex¬

Stock

Coast

Pacific

Cash Divs.

from page 30
No. Con-

Wire Ticker Service
The

(1879)

The Commercial and Financial Chronicle

tories and

abrasive products

Elizabethtown Consolidated
Gas Co.
Natural gas distributing utility

Elizabethtown Water Co.

(Consolidated)

ments.

'ervice

Operating public utility

JEmhart Manufacturing Co

Hoffmann Joins

von

Harriman

Ripley Co.
& Co. Incor¬

Harriman Ripley

porated, 63 Wall Street, New York
City, underwriters and distribu¬
tors of investment securities, have
announced that Robert F. vonHoffmann is now associated with

registered repre¬
formerly with
L. F. Rothschild & Co.
their firm

sentative.

Oil

t2.97

216

1.4

*35

2.00

3.3

1.45

3.0

Equitable Trust Co. (Bait.)—

f0.99

1.5

Equity Oil Co

0.40

36%

1.1

110

3.00

6.7

fO.14

0.80

13%

5.8

0.60

11%

5.3

2.00

3.9

*31

1.40

155

0.9

2.60

6.0

1.00

2.5

1.55

30%

5.1

3.40

53%

6.4

Employers Casualty Co
Employers Reinsurance Corp.

Crude oil production

Erie & Kalamazoo RR
by Nev York Central

Resistor

Electronic

Paul E;.Manheim, a

Chicago housewares manu¬
facturing firm, it was announced
by Arthur Keating, Chairman of
the

Manheim

Western

rector

also a Di¬
Union Tele¬

graph Co., The Lehman Corpora¬
tion,
The One William Street
Fund, Inc.. Security Title Insur¬
ance
Co. and
Chairman of the
Board
of
Vertientes-Camaguey

Textile holding and

Erwin

Essex Co
Water

—

power

40 EXCHANGE PLACE

HAnover 2-9000

to mills

&
•

Mackie,

inc.

NEW YORK 5, ».Y.

•

NY 1-1825 & 1-4844

Insurance Co.

Excelsior Life

(Toronto)
Participating & non-participating

Exeter

Hampton

Electric

Company

•

Operating public utility

Exeter Manufacturing Co
Cotton and

glass fabrics

Exolon Co.
and

Singer, Bean

mills

Manufacture

Homsey Admits

1.5-

operating 90.

Mills, Inc

Textile

Sugar Company.

du Pont,

molded

and

products

Erlanger Mills Corp

Board.

Mr.

Corp

plastics

Products Com¬

pany,

facilities

Multiple line reinsurance

Leased

Directors of Ekco

Market

Fire and Casualty Insurance

Erie

Partner in
the investment banking firm of
Lehman Brothers, in New York,
has been elected to the Board of

analysis

production and refining

Empire Trust Co. (N. Y.)

was

Elected Director
:

Basic

Glass Industry machinery

Empire State Oil

artificial

FIRM TRADING MARKETS

abrasives

IN OVER 450 STOCKS

magnetic separators

Faber Coe & Gregg,

Inc

Tobacco wholesaler

BOSTON, Mass.—April 17 Wal¬
will be admitted
partnership in du Pont,

ter R. Hennessey

Details

not

as to possible longer record,
dividends, splits, etc.

complete

t Adjusted for stock

to limited

Homsey
& Company, 31
Milk
Street, members of the New York
and Boston Stock Exchanges.

Interested.

Erdman to Admit
••'Erdman

Co.,

City, members of the
York Stock
Exchange, on

York

New
New

April

will

admit

to limited

Erdman

120 Broadway,

Edna

partner.

A
...

in any

stock

Burton J. Vincent & Co.

For

latest

prices, quotes, or information,

■t

Makris Inv. Brokers
'

BEACH, Fla. —Makris
Brokers
has
been
formed with offices at 4730 North

Makris

Mr.

and

Makris

Clyde Levingston.
formerly with

was

.Makris & Kakouris, and KramerMakris.

„

Rupe & Son, Inc.
Dallas

Cleveland
Evans

MacCormack
Los

Angeles

Reynolds & Co.

Merrill

Lynch, Pierce, Fenner & Smith Inc.
NEW YORK 5, N. Y.

70 PINE STREET

Offices in 112 Cities

Stone & Young berg

Philadelphia

Marketing Department

Investment

Bay Road to engage in a securi¬
ties business. Partners are M. A. S.

Saunders, Stiver Sc. Ca.

Chicago
Dallas

simply contact—

MIAMI

Direct Wires to

these pages?

San Francisco

Ca.

The Commercial ancl\Financial Chronicle...

(1880)
Cash Oivs.

Continued from page

secutive

THE OVER-THE-COUNTER MARKET

Paymts. to

secutive

12 Mos. to

Dec. 31,

Years Cash

tion
Dec.

Dec. 31,
1958

Divs. Paid

Extras for

Based on

12 Mos. to

31,

1958

Dec.

Divs. Paid

PROGRESSIVE AND PANORAMIC
Cash Divs.

1.40

493/2

2.8

First Natl. Bank of Boston— 175

3.35

,823/2

4.1

First Natl. Bank (Birming.)..

Approx.
% Yield

Including
Extras for

secutive

12 Mos. to

Divs. Paid

First Natl. Bank

Paymts. to
Dec.

31,

1.75

1.40

1.9

4.0

f5.60

First National

Boston real estate

Real estate and

2.20

56V2

3.9

1.80

591/8

3.0

First

Firemen's Ins. Co. (Newark)

3.4

1.30

First

Diversified Insurance

(Nashv.)

First Amer. Nat. Bk.

fl.16

28%

4.0

1.75

21
30

First Bank Stock Corp—

46%

3.7

First
First

Bank holding company

FIRST
•

banning

First Camden

First City

Details not

t Adjusted

complete

69
41

1.60

36 &

2.20

1.70

49?

i.8o;

36//:

5.0

1.40

3.4

115

3.00

4.3

2.15

—

3.2

4.50

...

433/2

1.55

563/4

3.8

Formed

3.9

and

f 1.37

47
296

1.00

2.9

8erves

Florida

1.40

421/4

3.00

551/4

5.4

,1.00

0.65

0.90

27%

3,3

18/

0.575

12%

4.7

3°

0.40

Public Utilities Co.__

Telephone Corp. cl. A

Telephone company
Foote Bros. Gear & Mach
and

transmission

Foote-Burt

Including predecessors.

possible longer record,
t Adjusted for stock dividends, splits, etc.

for stock dividends, splits, etc.

•1.60

-to

19%

Drilling,

3.3

equip.

Co.

reaming,

16%

•

2.5

tapping

machines

Forbes &

Wallace, Inc., Cl. B

Dept. store.

Fort Pitt

Fort

Springfield.

steel

8.1
/

1.00

3.4-

29%

Wayne National Bank
-1.00

1.7

24%

1.00

)•{"•'. V •'<

4.1

7.0

: o.4o

Steel Corp.

1.00

Industrial lighting units
Fourth Natl. Bank in Wichita

*34

fo.85
f0.14

Fort

Worth

Transit

Fort Worth bus service

Fostoria

Pressed

4.0
15

0.3'
',

Gloves

"-fi

...

water

4.5

331/4:

1.10

201/s

f0.91

Corp.

Manufacturer of

3.3

0.60

oil, air, fuel and

filters

Franco
Oil

•

Fownes Brothers & Co...
Fram

containers

Ft. Worth National Bank

-A

i.". *

Pa¬

shipping

8.3

: 3.00

1 •

fabrication

Co.

per

Corrugated

21'

1.75

Wayne Corrugated

Fort

Mass.

Bridge Works

Structural
VWM'Xm

•

Operating public utility

Gears

91
100

National Bank

Florida

f2.77

20
as

Trust

Massachusetts communities

Florida

N. J

complete

National

Bank

3.4

Details

Mechanics

2.9

10.00

3.5

Co.,

(San Francisco)
Fitchburg Gas & Elec. Light

4.5

(Tulsa)

not

First

*34

Co.

673/4

45
'

Bank.

First Western

& Trust

Aug.
29,
1958
of Trenton Banking

merger

Bank

Co.

First Trenton National Bank

4.4

Trust

Security Corp.

Bank holding company

First National Bank and

to possible longer record,

;

First

of Paterson,

2.4

3.1
4.7

2.1

First National Bank

2.8

1.00

—

fl.96

—

First Natl. Bank of Atlanta
•

Natl. Bk. (Houston

First Natl. Bank of Akron

43%.
29%

1.40

f2.00

4.2

•

C.)—— 69
64
Natl. Bank of Memphis56
Natl. Bank (Miami)
*34
Natl. Bank (Mobile)
22
Natl. Bank (Omaha)
Natl. Bank of Oregon— 88

First Natl. Bank (Wichita)—

fO.J

First Pennsylvania Banking &
Trust Co. (Phila.)
131

First Natl. Bk. T. (Okla. City)

National Bank
(N. J.)——

& Trust Co.

(Conn.)

3.9

3.00

lilt.

page

•1.50

24,

3.9

■

4.5

First Natl. Bank (Shreveport)

See Corporation's advertisement on

251/2

First Natl. Bank (St. Louis).

72 %

CORP.—

BOSTON

Investment

'1.40

Sav¬

1.00

changed from First Na¬
(Portland, Ore.) in
August 1958.

•74%

3.00

;

3.00

tional

1958

Name

First Bank & Trust Co.
(South B#>nd)

Oec. 31.

First Natl. Bank (K.

Multiple line Insurance

Paymts. to

31,

First New Haven National

2.6

215

Trust

ings Bank of San Diego...
Bank

First Natl. Bank (Jersey City)

securities

Fireman's Fund Insur. Co—

First National

4.0

of Fort

Worth
30

Pennsylvania

Finance Co. of

Bank

43%
353/4

146

First National Exchange
Bank of Roanoke..

4.0

349

f6.80

...

First Natl. Bank in Dallas

Fifty Associates (Boston).

24
.96

First Natl. Bank of Cinn

31,

1958

50.001 ,250

*13

(Chicago)

First Natl. Bank of Denver— *42

tion

Dec.

Dec. 31,
1958

Years Cash

Based

Quota¬

First National City Bank of
New York

4.3

No. Con-

tion

Dec.

31,

57%

2.50

First Natl. Bank (Baltimore)_al53

Based

Quota-

1958

*
-

Approx.
% V ie#

Including
No. Con-

Quota-

Extras for

Years Cash

Cash Oivs.

Approx.
% Yield

Including
No. Con-

Thursday, April 23, 1959

Wyoming Oil Co..
exploration

production,

and

development

Frank (Albert)-Guenther

Largest American multiple line market dealing exclusively in Reinsurance
ALL

ACCIDENT AND

FJRE, CASUALTY,

SICKNESS,

BONDING

AND

MARINE

Law, Inc.
Professional

LINES

advertising

FRANKLIN
ANCE

FINANCIAL

STATEMENT, December 31, 1958

Life
•

Cash in Banks and Office

Reserve for Claims and Claim Expenses.

$ 43,937,795

Reserve for Unearned Premiums

ment Bonds

Preferred Stocks

5,400,893

Small

Total Admitted Assets.

0.36

1.00

12%

tl.20

331/2

1.00

10.8

Cold

0.875

;

51,210,669

$143,240,160

9.0

Storage

8.2

Refrigerated warehousing

Natl.

Bank

(Atlanta)

Galveston-Houston Co.

1,852,549
.

23
95

Market

Fulton

691,109

1.50

5.00

loans

Fulton

4,450,850

....

6.5

Inc

Corp.

1.8

Fulton Industrial Securities

Premium Balances in Course of Collection

Other Admitted Assets

4.6

8%
13
.

Brushes

9,116,672

129,011,967

Accrued Interest.

V fO.24

Fuller Brush Co., Class A—l_

Other Liabilities

2,433,395

(not over 90 days due)

0.40

Textiles

Commissions, Taxes and

37,598,928

Total

4 7.

production, refining

Fruit of the Loom,

Reserve for

page

4.9

1.75

and marketing

8,992,961

....

City real estate

Frontier Refining Co
Petroleum

Stocks of Subsidiary

Companies

33,574,131

Funds Held under Reinsurance Treaties.

61,215,679

...

Other Common Stocks

0.5

33.

page

(Louis) Realty Co.

New York

$18,771,004

Other Bonds \.

831/4

f0.38

CO.

Friedman

Investments:

United States Govern¬

CO.

Company's advertisement

Refrigeration and air conditioning
equipment
• Sec Company's advertisement on

liabilities

4.0

insurance

See

FRICK
assets

agency

INSUR¬

LIFE

Holding company. Bus industry

Garlock

Packing Co

Mechanical

packings,

gaskets,

2.9

oil

seals

mechanical

6eals

1.3

450

Gary Natl. Bank (Indiana)__

Commissioners; if valued at market quotations, Surplus to Policyholders would be $46,121,197.

6.00

Gary Railways, Inc

Securities carried at $6,930,508 in the above statement are deposited as required
by law. Bonds and
stocks owned are valued in accordance with the requirements of the National Association of Insur¬
ance

and

0.20

5.9

1.44

34%

4.2

1.00

0.55

Transportation

holding

company

Gas Service Co—
Natural
Missouri.

serving

distributor

gas

Oklahoma

Kansas.

?nd

Nebraska
EDWARD

G. LOWRY, JR.

JAMES A. CATHCART, JR.

Chairman of the Board

President

Southern

LUTHER G. HOLBROOK

Executive Vice President

DONALD B. SMITH

Vice President and Governor,

Plastics.

Economic Consultant

President, The Southern Company

Chairman of Executive

Chairman, Stone A Webster, Inc.

tank

FREDERICK K. TRASK, JR.

RICHARD K. MELLON

President, Empire Trust Company

Payson & Trask

T. Mellon and Sons

Kidder, Peabody A Co.
j.

HETTINGER, JR.

•

ETHELBERT WARFIELD

Cleveland, Ohio

Satterlee, WorfieM A Stephens, Esqs.

Office:

400

park

avenue,

new

york 22,

n. y.

Midwestern Department: 314-317 Fairfax building, Kansas city s, mo.
Pacific

Chief

Department:

610 so. harvard boulevard,

Agent for Canada:

los angeles 5, calif.

36o st. james street west,

Montreal, Quebec

f,?'

0.50

6.9

0.60

>■;

Corp

16%

3.7
••

„

•

—

bonding,

fire

2.7

29%

fl.91

4.8

and

See

Corporation's advertisement

this page.

1.50

fl.43

Parts Co.—.

2.75

2.00

6.9

Automotive parts

Georgia Marble Co
Marble

production

Fire

Insurance

Company
Fire

and

allied

lines

Insurance

Giddings & Lewis Mach. Tool
Boring,

milling

and drilling

machines

//J/

2.3

lines

Genuine

</'///

REINSURANCE

Germantown
Home

elec¬

other machinerv

casualty,

allied

CARL N.OSBORNE

Lazard Frirts & Co.

BUSKIRK

Vice President and Governor,

FREDERICK L MOORE

and

CORP.
All

ARTHUR B. VAN

E. HALL

Hall, Haywood, Patterson A Taylor, Esqs.

Marine

GENERAL

Chairman, Mellon tiational
Bank and Trust Co.

ALBERT

—

small

printing

Metals

General

Committee,

Chemical Corn Exchange

HENRY C. 3RUNIE

WILLIAM

Commercial

N. BAXTER JACKSON

Manifold & Ptg. Co.

General
WHITNEY STONE

BRANCH, JR.

makes

Also

tric motors

T. Mellon and Sons
HARLLEE

producer

Industries Co.

General
ROBERT L. BRADDOCK

Crude Oil Co

General

Details

not

complete

to possible longer

record,

Adjusted for stock dividends, splits, etc.

'/</< ///''/ p/sp

Continued

on. page

Volume 189

Number 5840... The Commercial and Financial Chronicle

(1881)

Alii

ire
Chas. E.

Becker, President

of distinguished service

years

Statement

Home Office : Springfield, Illinois

•

of Condition

of January

1959

Assets...
Gash

....

♦United States Government Bonds

♦Other Bonds

Real Estate

...

St.

$ 12,802,184.39

223,668,331.97

197,838,888.01

$ 25,829,443.96

...

22,399,828.25

(Including $16,371,019.91 of properties acquired for investment)

Federally Insured
Real Estate
Other First
Estate

Guaranteed

Loans

progress

54,212,230.58

our

during the

Real

163,679,459.74

109,467,229.16

....

Policyowners.

Jdigb points of

Mortgage Loans

Loans to

year 1958

...

26,300,224.85

16,354,498.42

3,235,33933

(Secured by Legal Reserve)
Premiums in Course of Collection

New Paid Business

(Liability included in Reserve)
Interest and Rents Due and Accrued

Other Assets

■>

„

$750,598,729 00*

1,945,662.01
$470,385,528.96

Asset Increase

$50,774,617.26

Liabilities...
Legal Reserve

Outstanding Contracts

Premiums and Interest Paid in Advance

Other

Policyowners' Funds

Reserve for Taxes

3,906,869.39

•

2,378,524.76

837,553.81

Other Liabilities

•

»i
t

$33,497,339.00

3,065,000.00

Accrued Expenses

Suspense Accounts

Increase in Reserves

31,882,422.59

Payable in 1959

$364,515,979.00
9,049,179.41

Increase in

Surplus Funds

$8,600,000.00

$415,635,528.96

beneficiaries during year

Surplus funds.1
Capital

General

Surplus

...

•

Payment to policyowners and

$30,128,303.67

$16,389,843.75
^,^

38,360,156.25

54,750,000.00
Payments to policyowners and

$470,385,528.96
♦Bonds

arc

valued

prescribed by the National Association of Insurance Commissioners.

beneficiaries since 1884,

plus funds currently held
for their benefit

Insurance in

$669,883,754.46

force nearly te,

the largest legal reserve stock life insurance company in the
united states devoted exclusively to the

underwriting

of ordinary and annuity plans

The Commercial anil Financial

«882J
Cash Divs.

Continued from page

Approx.

Including

Cash Divs.

No. Con-

Cash Divs.
Extras for

secutive

12 Mos. to

Years Cash

Dec.

Divs. Paid

Based

Quotation
Dec.

31,

Halle

Paymts. to
Dec. 31,

31,

1958

2.40

53 %

Wood

4.5

Gisholt Machine Co

1.00

15%

6.3

Glatfelter (P. H.) Co.——_

2.00

62%

0.40

1.00

2.9

2.4

Portland and masonry cement

2.00

3.00

133

1'1.95

49%
43%

0.85

17%

4.9

Bank

Co.

America

Fire,

marine, multiple periil cov-:
allied lines

j 25

22%

Goderich Elevator &

1.50

0.35

0.50

1.50

3.9

Haverhill

t0.95

127

0.7

6.00

325

1.8

2.00

4.3

1.50

machinery

5.6

1.6

187

(N. Y.)

1.50

3.3

45%

Life, accident and health

0.30

15%.

1.9

•

1.40

3.5

2.40

5.7

vO.98

i'■

13%

2.60
0.125

1.50

38 %

3.9

112%

2.2

2.15

Water

1.00

2.00

35%

*32

4.50

Operating water utility

3.7

70%

Indianapolis

3.9
,'i.V/

4.8

41%

2.50

0.7
4.3

;

(New York)
Industrial Mortgage
Co. (Ontario)

4.5

24%

1.34

5.5

2.00

0.20

*27'

•2,50

Trust

4.6*

...

Industrial Natl. Bank (Prov.)al67

5.6
■

Savings, trust and mortgages

-211
72

v0.99

ale

and

6.3

fl.78

5.8
(

;

49%

3.6

Ovcr-The-Coiuiter Consecutive Cash Dividend

3.6

5%.

Payers From 5 to 10 Years Appear in the

35%

3.00

67%

Page 47.

■4.3

2.00

Second Table Starting

•7.0

1.60

1.8

Hibernia Bank (San Fran.)..
Hibernia National Bank
-

■

•

Insley. Manufacturing Corp..

(New Orleans)

Manufacture

.3.0

struction

;

Indiana drug chain

Great West Life Assurance

Higbee Co.

(Winnipeg)

4.30

280

1.5

1.20

...

27%'

•

HA,

;

*22

5.00

7.4

Green (A. P.) Fire Brick Co.. i 33

1.00

26%

3.8

House slippers

Manufacturer of refractory

prod¬

1.05

4.4

Vegetable canning ft distribution

3.2

15%

P'50

end

Finance

Griess-Pfleger Tanning Co- j 19

1.00

7.8

12%

Leather tanning

—.4

192

1-3.81

2.0

systems

(N. Y.)

Life

and

•

and casualty

Telephone

Local

18.00

362

5.0

;

Guaranty Trust Co. (N. Y.)..

>67

4.00

91%

4.4

Gulf

2.00

2.3

(Dallas)

and

Gulf Life Insurance Co

•46%

•4.3-

(Jacksonville, Fla.)

0.50

••

24%

2.0

;

34 %•

1.4

Hooven &

products

Inc.

fl.59

Water treatment chemical*

73%v

2.2

Details not complete as to possible
longer
t Adjusted for stock dividends, splits, etc.

record,

d Plus

•

•-

1959

;

>18

,1.00

16%

6.2

0.15

10%

15.00

28
*

complete

15.8
o

■

Real

estate,

16.00

Iowa

3.0

525

possible longer record.

office

Linden

the management

Jaeger

rities

UNLISTED INVESTMENT STOCKS

Teletype NY 1-724
Private

wire to

Philadelphia

fO.48

4.8

Hi
13%

3.6
v

:0.80

12%

6.5

0.90

18%

4.9

2.05

8.5

0.80

18%

4.3

mort¬

Co.—.

Service

supplier

Details

Adjusted, for

longer record,
etc.

Including predecessors.

opt

complete as to possible
stock dividends, splits,

5
FOUNDED

1885

Place

of Robert

Opens

listed, unlisted securities

J. —Robert

conducting

business

secu¬

frorn^ offices

and commodities in the

at
/

CASPER,

Wyo.—Allen Invest¬
Company
has
opened
a

ment

office

under

bert

2-4949

29
.

•

Allen Investment Branch

ter,

Telephone REctor

and

*
ten shares held-

Summit Avenue.

branch

NEW YORK 5,

United States and Canada

INDUSTRIAL & RAILROAD SECURITIES

•

1.40

| f

»
<

Brokers and Dealers in

BROADWAY

3.5

BROKERS

MAPLEWOOD,

31%':

-■

insurance

Public

Electricity

Viscount.

"1:10

Investors Mortgage Company
(Bridgeport) __1—;

4.1

25%

4.05

R. G. Jaeger

Stock Exchange

5.0

loans

sumer

Adams &' Peck
and American

BANK, ; N.
J. — Spear,
& Kellogg has opened a

Leeds

Interstate Securities Co

Spe&r, Leeds Branch

under

Exchange'

f l 80

gages

branch

Members T^ew Tor\ Stock

5.2

loans

Small

1.4

for stock dividends, splits, etc.
share Northern Mineral Co. for each

15%

hydro-electric

—

Restaurant. ch*in

RED

Anniversary

trust

Interstate Co. _!

cleaners

one

0.80

Automobile financing and con¬

;

Our 35th

5.8

0.36

■

Barbizop, Inc
not

- :•

Allisoq Co

t Adjusted

1.9

•;/i

Interstate Bakeries Corp.____

New. York City
■?.Details

—

Interstate Financial Corp.____
—

Hoover Cq., class A
Hotel

0.6

10.49

and twine

Vacuum

Htagan Chemical and Controls,

265

public utility

Investment

Drugs, Inc

Ropes
.

5.00

? ;.

bafcerips

phone
'%■;

(Brooklyn, N. Y.)
Insurance

International Holdings, Ltd..

Tele¬

dlst§ccf

3.7

interests

Home Title Guaranty Co.

Hook

Life and accident

long

___•

Wholesale-bread and cake

and

U". fervice

Title

casualty Insurance

Gustin-Bacon Mfg. Co

•

Reinsurance—multiple lines

>■

graph Qompany of Virginia

(Montreal)

3.1

•2.00

Group, Inc... .11

Inter-Qcpan Reinsurance Co

.12%

Life, accident <fc health

Home

Guarantee Co. of North

1924

Operating

Home State Life Insurance Co. *13

Casualty

Fire;,

Mortgage

Title Insurance

.0.40

1.40

( '

Inter-MQimlahi Telephone
I:'- Company

2.8

0.25

Insurance Co

Home

Glass fibre Insulation

Co.—

&
-

♦

Operation of food markets, cafe-

Home

3.2
!' "

—

QiyerslHed insurance.

'3.0'

*40%

1.20

Electric and hydraulic power,
Industrial steam and real estate

Dairy

0.45

13,

con¬

Inter-County Title Guaranty

Holding cpmpany—aujlq fln^nclns

weldlne studs

Co.

terias and bakeries

Gregory Industries, Inc

fittings,
spriuliler
piping systems

C12.50

6.3

Timber logging and processing

Home
*35

Stud welding equipment

Lumber Co.

Holyoke Water Pq\yer Cq—

ucts

Green Giant Co., Class B

sale

shovels, etc.

Pennsylvania

Department store

Hines (Edward)

and

cranes,

Insurance Go. of the State of

Life, accident and health

120

a25

and

production

Pennsylvania

—

Great Southern Life Ins. Cof -34

and

i_
wallpaper

Indiana Telephone Corp
Operating public utgity

55
41

Co...

Hershey Creamery

Engineering

Insurance

•■;:■■'!

Produces dairy products in

Works

Fire

2.9
••

•

Beer

Guarantee, fire,

Indianapolis

insurance

Heidelberg Brewing Co..

Shipbuilders and engineers

America

control

Industrial Bank of Commerce

Sugar

Diversified insurance

and

4.8

Haytian American Sugar Co.,

Corp.

1.00

3.7

1.40

Holding company

Cotton fabrics

Pipe

felts,
precision in¬
devices *

fabrics,
and

Sugar refining

6.9

Haverty Furniture Co

Cold Storage Co.—

Grinnell

2.10

3.2

papermakers'

Imperial Sugar Co

Insp

(Cambridge).

Gas

'■57:33

■;.i

Indiana Gas & Water Co., Inc.
Natural gas. and water utility • T
Indiana National Bank of : V

■

Gas service

fire

Graniteville Co.

and

Harvard Trust

Detroit Ice manufacturer

Green (Daniel)

Manufactures

■

■'

2.7

•

products

& Sons

Paper Corp.-_

8.6

16 %

2.00

Insurance Company..

Boiler

Grace Natl. Bank of New York

Co.

3.00

Steam

and

Pumps and water systems

Great Amer. Ins. Co.

—

Boiler

food

■■'

Corp

Imperial Color Chemical &

Natl. Bank & Trust 127

5.8

Hose, belting and packings

Gould Pumps, Inc

Warehouse

109

insurance

5.0

com-

Idaho First Natl. Bk. (Boise)

2.5

102

3.00
1.10

Hartford

5.3

retailer

Co., Class A-

Insurance.

f2.55

51r

Hartford Gas Co.

and

(F. C.)

Industrial

Hartford

Corp

and

(Chicago)

Diversified

6.1

24%

utility

chemical pigment colors

Hartford Fire Insurance—55

^-4:

elevator

Great Lakes

1.80

Grain handling equipment

Transit

....

Trunk

1 29%

public

struments

Savings

Hart-Carter Co.

erages and

Grand

v°.79

•-

Penn-Harris Hotel

4.5

17.:

Harrisburg Hotel Co
1.00

f.i

and electric

gas

6.1

;

Manufacturer

and

Trust

43%''
28%

pany,

4.6

;

rooms

Huyck

3.9

2.00

2.3

106

2.65

3.4

58%

Inc

1.40

5.0

Harris

Republic Insurance

Employees

66%

2.00

-A'

Syracuse,

Confection

(The) (ff. Y.)

31,

1958

Huntington National Bank of
Columbus (Ohio)
'•:47
Huston (Tom) Peanut Co.—
22

2.7

305

and sportswsir

Paymts. to
Dec. 31,
1958

Dec.

Houston Natural Gas
V'" Southern Texas utility

5.3

18%

v7.30

(M. A.), Class B

tion

Dec. 31,
1958

Based OR

hotel

Connecticut
,

Insurance

Glens Falls Portland Cement

Insurance—casualty

1.Q0

;

underwriter

Gary Corp

Housatonic Public Serv. Co.
;

;

Coal iron, steel

Multiple line insurance

Govt.

0.9

products

Hanover Bank

cream

yl.82

6.3

34%

0.80

600

National Bank

Underwear

Brick manufacturing

Glens Falls Insurance Co,...

Well-known Ice

Hanover Insurance Co.—— 106

3.2

3.5

*54

Hanna
13

Knoxville, Tenn.-___—27
Hanes (P. H.) Knitting Co
26

Pulp and paper manufacture

Glen-Gery Shale Brick Corp.

f0.95

Nam*

Chattanooga, Tenn.)
.
Hamilton National Batik of

Turret lathes and tools

Goodall Rubber

steel

and

Quota-

Hotel

2.5

40%

Indiana

Divs. Paid

merchandise «JUrribui«r»

Hamilton

Girard Trust Corn Exchange
Bank (Philadelnhia >
% 122

Years Cash

Hotel

Formerly
^Haloid
Co
changed in April 1958.

3.6

2.00

12 Mos. to

1958

1.00

—

Hamilton Mfg
17

Appro*.
% Yield

Including
Extras for

secutive

sir condi¬

Bros

Ohio

Wire cloth

Good Humor

DecL31,

Haloid Xerox, Inc. (N. Y.)—

1958

Gilbert & Bennett Manufac¬

Grain

Corp.

Plumbing, heating and
tioning supplies

CO., Ltd

Dec.'31,

Dec. 31,
1958

•

No. Con-

Hajoca

% Yield

No. Con¬

tion

Divs. Paid

Approx.

Including

Globe

12 Mos. to

% Yield
Based on
Paymts. to

Years Cash

PROGRESSIVE AND PANORAMIC

turing Co.

Quota-

secutive

—

Extras for

THE OVER-THE-COUNTER MARKET

Chronicle... Thursday, April 23, 1859

150

North

the direction

THOMSON & MVK1NNON

Cen¬

Her¬

Broadway, New York 4

Taylor.

N. Y.

CHICAGO

Diran Norman Office

INDIANAPOLIS

TORONTO

offices in the United States and Canada

ROCKVILLE CENTRE, N. Y.—

Diran,
opened

Norman

Co.,

Inc.,

branch

has

office
at
507
Merrick Road under the managea

^ment of Girard A. Tiryakian.

memsers new york stock exchange and other principal
j

security and commodity exchanges

•

Number 5840

Volume 189

(1883)

The Commercial and Financial Chronicle

THE OVER-THE-COUNTER MARKET
Cash'blvs.

No. Con-

Extras for

secutive

12 Mos. to

.Years Cash
Divs. Paid

Iowa Southern Utilities
Public utility, electric,

Co—>

(J. B.)

& Co

^5078

4.5

Jacksonville

Gas

i-1.59

; ;

381/2

4.1

171/s

5.8

offset

James

■U'

0.15-;

•

2.00

•2%

5.2

383/4

5.2

*9%

2.5

supplier

0-50

*18

fO.77

221'2 :

3.4

-____

Sportswear manufacturing

0.60

121/g

4.9 1

90%

1.4

Electrical devices

Life

Life Ins.

;

1.25

-24

2.00

-r

insurance

Jenkins IJfos.

_____;

,£■

4.3

Jersey Farm Baking Co
General

baking

0.10

2.9

31/2

Jersey Insur. Co. of N. Y-___ a26

1.54

3.9

Multiple line Insurance

Jervis Corp.

0.15

3.2

0.10

2.9

Johansen Bros. Shoe Co.____
Johnson

Service Co

*24

2.00

2.5

1.25

4.6

2.10

3.7

1.00

| I81/2

5.4

1.60

28%

5.6

1.50

39%

3.8

Temperature and air conditioning
controls

•

:">*

Lathes, grinders, comparators,

threading dies

Joslyn Manufacturing &

Supply Co.

Electrical and communication

Ifne equipment

"<„•

;

pole

-V,

Julian & Kokenge
Women's shoes

Kahler Corp.
Hotels, restaurant and laundry
operator

(

<.*

;
;

Kalamazoo Veg. Parchm't Co.
food

and

paper,

specializing

protection papers

*74'

8.00

4.6

175

City Fire & Marine*
'

Insurance Co.

Multiple-line Insurance
Kansas City Life Ins.

v •

1.25

4.8

*35

8.00 1,580

0.5

Non-participating life

Kansas City Structural Steel

! n

1.00

5.6

•

Buildings, bridges and tanks

Kansas

City Title
Company

Insurance
19"

Title insurance, abstracts, escrow

Kansas-Neb. Natural Gas Co.

2.50

■

4.3

-...

1.80

38%

4.7

1.20

5.7

0.15

fl.00

2.7

2.00

4.0

Natural gas production, transmis¬
sion and distribution

Kearney (James R.) Corp

1.6

9 J/8

Milling machines

Kellogg Co. (Battle Creek)__
Leader in dry cereals

Kendall Company

Surgical dressings, elastic goods,
textile specialties
and pressuresensitive industrial tapes

Kendall

Hard

—

carbide

compositions,
ting tools and specialties

Kent-Moore

1.10

5.5

1.05

4.2

0.80

cut¬

Organization..^.

Service station

Details not

5.7

equipment
as

and

was

now

one and a half,
polite
salesman

calls
the

waiting, he

statistical

dd-

partment and picked up a prospectus.
He picked up the tele¬
phone and started to talk when
TT

his

•

customer

about

said,
this

"Don't

stock

Estate ^der^y|tqrs, Inc. is euiri a securities business
from ? offices at 1344 Wilshire
Boulevard. -Officers are R. Bene-

This

ment.

several

took

she sells the tractor.

never
r«/M

for

shares at

half

to possible

"ft

Itl^A

r«

After all Julia
1

nice

lady

T\T

«J!

even

name

U V /\1 r

T/3ntl/\

1-.

:-1'

and

You

weeks

page

Will

ago

Stocks ani> Bonds
'

* ' '

•XvX->

Underwriters and Distributors
of

■

Corporate and Municipal
Securities

4
■4
-4

of cold

Succeed
ran

some
growth
firm likes.
The
response was unusually good but
the orders received as yet have
not been very gratifying. Picking

that

Members New York Stock Exchange

H
mm

Telephone "WHitehall 3-7600
m
111:

ill

Corporate Teletype: NY 1-865 • Municipal Teletype: NY 1-1691

|||g
We have direct wires to the
'

Albany

Christiana Securities Co.

'til

111
:/Ay.y.

COMMON

Bought

PREFERRED

Sold

following cities:
'

Albuquerque Asheville Baltimore Beloit
■

Beverly Hills

Dallas

Cleveland

Cincinnati
Des Moines

Durham

Detroit

Fayetteville, Ark.
Grand Rapids

Chicago

Burlington

Boston

Denveh

Farmington, N. M.

Fullerton

Fayetteville, N. C.

Houston

Harrisburg

Greenwood

Huntington

Indianapolis

Kansas City

Quoted

Laurel

Minneapolis
New Orleans

Francis I. duPont & Co.

:i||

St. Louis

Members New York Stock Exchange and principal security and
WM

commodity exchanges "

•

ONE WALL STREET, NEW YORK 5

72 offices coast to coast
Dlgby 4-2000

Portland, Ore.

Mobile

Malone

Los Angeles

San Francisco

Spartanburg

Victoria, Tex.

Montgomery

Nashville

Phoenix

Pittsburgh

Philadelphia

Potsdam

St. Paul

Rock Island

Salt Lake City

Santa Ana

Syracuse

Joplin

Jackson

mm
'

;

for action.

Several

;

Brokers in

Ed-

of North. Idaho Brokers Co.

M
Mm

•

MOSCOW, Idaho — Walter R.
Melgard is engaging in a sechri-r
ties business from offices at 110

ammonia, and a shot of
scotch we are happy to report he
is back at his desk again ready

stocks

record,

Continued

and

North Idaho Brokerage

you

1%."

our

President,

ward J. Golden, Vice-President.

bought stock before and she East Fifth Street under the firm
t~.

sounds

into the consultation

and after

Brout,

dick

tion, and assistance when and if

Picking up the phone
again, he said, "The market is 1%
bid offered at 1%."
"Good," re¬
plied the customer, "put in my
carried him

gaging

without

long prospectus to me?"
Nonplussed the salesman replied,
"Well, what would you like to
know?" The customer by this time
seemed agitated
and he asked,
"What's the price; if it looks O.K.
I might buy quite a block of it?"
"Hold on," replied our salesman,
and restraining his rapidly mount¬
ing blood pressure while
also
looking at the lights blinking on
his phone, as
other calls were
waiting, he finally < obtained a
quotation from his trading depart¬
a

longer
t Adjusted for stock dividends, splits, etc.
a
Including predecessors.
complete

out

Advertise

'
V

and

several

hustled

room

Producing, refining and marketing
of petroleum and its products 1

Kennametal Inc.

the

'packs,
57

Refining Co.

ex-

7
"Hope it stays that price a little
longer. I have never bought any
answered, "Well, it's a new issue, 'stock, will write you as soon as I
and if I remember it's a highly
sell, and I think I can sell pretty
speculative stock. It was offered 'soon. ;
.
at a dollar recently, we may have 7
"Julia T "
a
prospectus here and I'll see if
p.
am
sure
Julia raeans
I can get hold of one and answer
;well> and l know that she will be
your auestions.
given every consideration, atten-

order

(The)

Over

"Your letter to hand last week, at 404 North RoxbUry Drive > ta
and I am impressed by the XYZ engage in a Securities business,
stock, but I have a tractor and a officers are Joseph Lowitz, Pres¬
lot of other farm implements that ident; M. Pope Wager, Vice-<Pres- I find is had to sell. I have been ident*
and
James
FischgruncL
a widow 27th of last April.
My Treasurer.
'
^
>
husband was a farmer and the
.y
1
tractor has only done 40 acres of p p I
Fnrrri«l
land, a case, when I sell this trac- rv*
uuucrwruci - 1
tor and other things I want to take
/
(special to the financial chhonicle) ,
10 or 20 shares of XYZ stock.
LOS ANGELES, Calif. —Real

minutes.

Utility equipment

Kearney & Trecker Corp

him

alert

reading

Kanawha Valley Bank
Kansas

dollar

trading at about

know

Suddenly

asked

telephone, "What do you know
about Squedunk Common?"
Remembering that this was a penny
stock that was recently offered at

With

well.

voice

our

women

Jones & Lamson Machine Co.

Pulp

orders

Refrigerators and stove hardware
for

his hands full !

had

answering phone calls, obtaining
quotes, giving service, arid exeenting a few bread and butter
cited

Valves

Shoes

salesmen

our

Jefferson Electric Co.
Jefferson Standard

sales-,

our

Manufacturing Co.___

Manufacturers of farm equipment

Jantzen Inc.

in the business?'^ and

are

you

6.6

; 0.595

/"*■ ■ ;• I' ' "'
water

When

doing business up about a dozen leads that came man. weakly' replied,' "Only 33
with the good old public you learn in from out of town I wrote a years," and quietly fainted away *
a
lot abdrit people. I sometimes short letter to those who had been irito a deep' coma from which' he '
wonder how it is possible that previously contacted but as yet was finally rescused as previously
some
individuals have so little had not shown any inclination to reported, that my frieiidS, is the
consideration for other people's investigate further. I enclosed a top story for this week,:
time and yet that is the way of short report one one of the stocks
The customer may always be the world. Here are a couple of and invited the prospect to write right—but just How Eight Can.
little stories from recent experi- or phone me if interested in more You Be, now I ask you?
i
;
ehces
of
the
past few weeks, information.
I enclosed a self
Maybe some of the customers will addressed envelope with postage
Form Investment Coappreciate them as well as the paid.
\
1
(Special to The Financial Chronicle) ;
j
salesmen who read this weekly
The following letter was placed
BEVERLY HILLS,' Calif.—Par¬
column.
;
on my desk a few days later.
amount
Mutual
Fund 'Manage-'
It was a busy morning, one of "Dear Mr. Dutton:
ment has been formed With offices
-

color

•

Island

1.00*

Jamaica Water Supply Co.__
Long

Engraving Co.

Photo-engraving and
positives

Corp

Operating public utility

Jahn & Oilier

-'28

Department store chain

Did It Ever Happen TO YOU?

1958

heat

Ivey

SalesmaCorner
By JOHN BUTTON

Paymts. to
Dec. 31,

;' ;

Irving Trust Co. (N. Y.)____

Securities

Based on

tion

1.28

steam

gas,

Quota-

Dec. 31,
1958

Dec. 31.
1958

obtain and

$25 to

order,, for which wo
her the minimum $6
commission,, that's O.K., But When
the fellow who wanted to buy(the
50 shares of Squedunk at VA in¬
dignantly asked our star sales¬
man, "What's the matter with that
order, how long have you been

Approx.
% Yield*

,.J

Including

•

costs

process her
will charge

PROGRESSIVE AND PANORAMIC
,

Seattle

Santa Fe

Toronto

Washington

Rome,N.Y.
San Antonio

Tulsa

Whittier

Utica

Wichita

The Commercial and Financial Chronicle...

tinuing flow of new products and

Proposed Capital Spending by Business
McGraw-Hill

finds industry in 1959 will make record

survey

expenditures on modernizing obsolete plants and equipment,
with a cut-back on expansion. Increased expenditures on
research and development during 1959-1962 looked for.
Industry expects to spend more
year
than ever before to
modernize
obsolete plants
and
this

previous, survey.
Manufacturing
companies plan to spend only
35% of their outlays for expan¬

invest
more

rate of 80% of capacity at the
end of 1958, plan to increase their
capacity about 4% a year during
the next four years.
This would
make manufacturing capacity at
the end of 1962 more than 80%
age

slightly its
capital spend¬
ing in 1960.
These
two

are

the

greater than it was in 1950.

prin cipal
findings
of
12th

Sales of manufacturing compa¬

an¬

expected to be 9% higher
this year and to show an addi¬
tional increase of 18% by 1962.
nies

Dexter

Keezer

Business*

are

Manufacturing employment is
expected to rise less than half as
rapidly as sales — 3% this year
and 8% between 1959 and 1962.
of Economics,
Industry
anticipates
substantial
which conducted
the survey.
gains in' productivity over this
Companies reporting in the sur¬ period—about 6% this year and
(This
vey employ 40% of all industry 3% a year through 1962.
employees in the U. S. and more figure applies mainly to large
than 50% of all workers in indus¬ manufacturing
companies and
tries where capital investment is does does not cover many other
lines of employment.)
highest — including petroleum,
The flow of funds from depre¬
utilities, railroads, chemicals,
autos and steel. (Their responses ciation will continue to rise, and
to the survey questionnaire were by 1962, will be 21% greater than
in 1958. Manufacturing companies
made during recent weeks.)
Plans for New Plants and

Equip¬
ment,
announced April
17 by
Dexter M. Keezer, Vice-President
and Director of the Department

1958

set

over

Both in

1959

Modernization

and in the years

tions will rise 17%.

This increas¬

ing source of funds will provide
strong financial support for busi¬
ness' capital spending.

from

PROGRESSIVE ADD PANORAMIC

Cash Divs.

plants and equipment.

new

secutive

President of Steel
Birmingham, Mich.,

.Glenn Berry,

of residential

steel

overhead

garage doors, has an¬
completion of arrange¬
ments for a $400,000 12-year loan.
Mullaney, Wells & Co., Chicago
(111.) investment bankers, acted

nounced

Co., of
America, through its north cen¬
Prudential

tral

Insurance

in Minneapolis,

office

home

Minn., will advance the funds.
said proceeds of the
(represented by first mort¬

gage bonds due March 1, 1971)
will be used for capital expendi¬

in con¬
nection with the company's busi¬
tures and working capital

dent

Conroy,

The

Bank

Chase
of

head

and

Vice-Presi¬
Manhattan
its

largest

these pages?

prices, quotes,

with

formerly

was

Schwab-

acher & Co.

information,

Joins

20
;

Kings County Trust
•
Company, Brooklyn, N. Y.

4100

Kingsburg Cotton Oil Co

0.20

fO.78

0.17

1.00

1.25.

7# PINE STREET

Wilson, Johnson

(The)

Manufacture

Company
Insulated

wire

cable

Offices in 112 Cities

N. Y.

1.37

36%

3.8

1.50

30%

4.9

Cotton seed

Book

•

••

■

108

3.7

9.4

products

manufacturing

Kinney Coastal Oil
Crude oil produced

Kirsch

Company

Manufacture

Venetian

drapery hardware

16%

6.2

blinds,

and

refrigera¬

hardware

Kittanning Telephone Co

Communication

5.2

;

Knights Life Insurance Co.
of America

f0.80

1.20

3.4

0.55

3.4

0.70

15%

4.5

0.30

6.7

1.00

1.1

insurance

Knudsen Creamery Co.
California

Wholesale dairy products

Koehring Co
Earth moving and construction
equipment

Kuhlman Electric Co
furnaces,

13
>••

aluminum

and

Co.

Canned vegetables, bottled pickles

Kuppenheimer (B.) & Co.,
Inc
Manufacturer

men's

La Salle Natl. Bk.

(Chicago)

•

steel

■'

3.0

177

4.5

;

■

v' '

8.00

1.20

24%

4.8

1.25

1.5

1.60

5.3

*39
15

17.00
0.50

•

manufacturer

Lake Superior Dist. Pwr.
Public

2.80

Laclede Steel Co
Basic

5.3

wholesales men's

Makes and

clothing

utility

(electric,

gas

Co.
and

water)

Lakeside

Laboratories, Inc.—

Pharmaceutical

Lake

products

Superior & Ishpeming
Co

View

Lamston

Trust

Savings

(Chicago)
(M. H.) Inc

—

(Special to The Financial Chronicle)

350
9%

2.0
5.3

Variety store chain

Lang &

High

9.0

0.45

10.63

0.20

3.50

5.5

0.10

11%

0.9

14
17

1.55
1.00

36%
118

4.3
0.8

1.50

3.2

Wholesale

|2.46

4.4

0.80

24%

3.3

0.29

0.6

grocer

Latrobe Steel
speed,

tool

and

22%

2.8

4.4

stain¬

die,

less steels

Blower

Co
equip.

(H. D.) Co. Inc
of

utility

work,

and

play

Leece-Neville

Co.——

Starting-light equipment for autos
and

aircraft

Liberty Bk. of Buffalo (N.Y.)
Liberty Life Insurance Co.—
Non-partlcipatlng

Liberty Loan Corp.
Consumer credit

Liberty Natl. Bank & Trust
Co. of Louisville

Liberty NatL Bank & Trust
Co. of Oklahoma City

Dean Witter Adds

Liberty National Life

Cal.—David

Coquillard has been added to
the staff of Dean Witter & Co.,
45 Montgomery Street, members
A.

Aztec Oil & Gas Co.

3.5

and

Kingsport Press, Inc

clothing

FRANCISCO, Cal.—Ralph
Phelps, Jr. is now with Wilson,
Johnson & Higgins, 300 Montgom¬
ery Street, members of the Pacific
Coast
Stock Exchange.
He has
recently been in business for him¬
self and prior thereto was with
First California Company.

SAN FRANCISCO,

■■

Mfr.

SAN

NEW YORK 5,

Insurance Co...
Life
•

Insurance

Details

not

complete

to possible longer record,

t Adjusted for stock dividends,

splits, etc.

of the New York and Pacific Coast

Western Natural Gas Co.
White Eagle Oil

Continued

Stock Exchanges.

page

Company
PRIVATE

WIRES TO

Republic Natural Gas Co.
Southwest Natural Gas Co.

Glore, Forgan & Co.
Chicago

G. A. Saxton & Co., Inc.

Schneider, Bernet
& Hickman, Inc.
Dallas

Teletype NY 1-1605-1606-1607

Hendricks & Eastwood,
Unlisted Trading Department

Inc.

Philadelphia

52 Wall St., New York 5, N.Y.

Reinholdt & Gardner

WERTHEIM & CO.
Members New York Stock
Exchange

St.

•'

8.5

•'

2.2

Kentucky Utilities Co

Lee

Merrill Lynch, Pierce, Fenner & Smith Inc.

fl.48

Lau

(Special to The Financial Chronicle)

Marketing Department

4.9

Manufacture of air moving

simply contact—

102

Bank

the Pacific Coast Stock Exchange.
He

For latest

5.00
^

Crushed atone

Lake

Calif.—John
P. Symes, Jr. has become affili¬
ated with Henry F. Swift & Co.,
490 California Street, members of
SAN FRANCISCO,

stock

Operating railroad

(Special to The Financial Chronicle)

in any

1958

•

Kentucky Stone Co

Kuner-Empson

Henry F. Swift Adds

...

1958

Non-partlclpatlng life

Railroad

1958

products, packaging

In N. Y. Fund Drive
I.

Dec. 31.

melting

Walter

Paymts. to

Dec. 31.

Manufacturer transformers, metal

growth.

ness

tion

Dec. 31.

Divs. Paid

Life

Mr. Berry

loan

Based

Kentucky Central Life & Ac¬

tion

agent.

12 Mos. to

Quota-

Electricity supplier'

Mullaney, Wells Places
Sleel Door Corp. Bonds
Corp.,

% Yield

Extras for

Years Cash

Kerite

manufacturer

Approx.

Including
No. Con-

cident Insurance

Manufacturing
companies are
planning to invest $523 million in
new research facilities in
1959—
or
5% of their total outlays on

—

plans now call for a rise to $10.6
billion by 1962.
In view of the

1960-62, manufacturing companies
Bronx branch, at 369 East 149th
plan to devote, on the average,
Street, will serve as Chairman for
65% of their plant and equipment
the
Greater
New York
Fund's
Record Outlays for Research and
outlays to modernization.
The
1959 appeal throughout the Bronx
Development
dollar volume is the highest ever
business
community.
The an¬
Research and development con¬ nouncement was made
reported for this purpose in a
by Clifton
McGraw-Hill survey.
ducted by business — which in¬ W.
Phalen, President of the New
•Conversely, the proportion of creased 12% in 1958, despite the York Telephone Company, who is
will increase further
capital spending devoted to ex¬ recession
serving as the Fund's general
pansion is smaller than in any during 1959-62, assuring a con- campaign Chairman for this year.

Interested.

page

THE OVER-THE-COUNTER MARKET

record and was
1957 total.
Long-range

the

estimate their depreciation deduc¬

Major Emphasis

in
12%

The $8.2 billion spent

R&D.

Door

Sales Growth Expected

nual McGraw-

Hill survey

findings made by the
the following:

Manufacturing
companies,
which were operating at an aver¬

increase

on a

year

ceeded.

survey were

new

is planning
nine billion dollar budget for
this

Business

tion in the years 1960-62.

Other key

Continued

processes.

sion in 1959 and the same propor¬

plants and
equipment
this year and

new

steep upward trend in research
expenditures in recent years, this
figure is almost certain to be ex¬

business

American

equipment.
also plans

the

Thursday, April 23, 1959

(1884)

WHitehall

Louis

Crowell, Weedon &
Los Angeles

4-4970

Co.

NEW YORK

Trading Markets in Public Utility, Natural Gas and Industrial Securities

;i-

Number 5840... The Commercial and Financial Chronicle

Volume 189

Cash Divs,

Continued from page 36

PROGRESSIVE AND PANORAMIC
Cash Divs.

Approx.

Including

% Yield

No. Con-

Extras for

Quota-

secutive

12 Mos. to

tion

Years Cash

Dec. 31.

Divs. Paid

1958

Based

Paymts. to
Dec. 31,
Dec. 31.
1958

1958

Life Sc Casualty Ins. of Tenn.

0.60

21%

2.7

Life, Accident and health

Co. of Syracuse—
Lincoln NatL Life Ins. Co

2.40

3.5

fl.18

3.0

1.95

250

0.8

....

(Rochester)

Water and sewer

2.6

0.90

2.0

4.00

75%

5.3

1.40

25%

5.5

2.00

6.3

7.00

185

3.8

Mellon NatL Bank & Trust—

0.10

residential

56%

5-2

2.00

146

1.4

fl.50

0.20

2.00

32%

5.6

Chicago
Merchants Acceptance Corp.

Longhorn Portland Cement-

1.50

3.9

a63

1.40

321/4

4.3

Manufacturer of Portland Cement

0.60

by-producti"
on

1.25

4.3

real estate

Louisville Trust Co. (Ky.)__

1.45

4.5

Lucky Stores, Inc.

0.78

22%

3.5

Retail food chain

1.60

6.2

Jute and burlap

0.70

6.7

Typesetting equipment

Luminator-Harrison, Inc.

6.4

electrical products

Lynchburg Foundry Co

0.60

161/2

3.6

Cast iron products

1.00

Lynchburg Gas Co

3.8

-•

—

Lynn Gas & Electric Co

1.60

341/2

4.6

fl.80

37%

4.8

0.60

14%

4.2

1.50

321/2

4.6

Lyon Metal Products, Inc.

construction

1.40

5.8

main¬

and

Wire, rope, cables
Houston drug

121/2

4.8

1.80

3.6

2.00

Public utility,

gas

1.20

22%

2.6

6.7

21%

5.6

0.225

^
13

1.20

': m

: f0.595

2.9

1.80

26%

6.9

2.05

3.2

5.5

5.0

0.90

16%

5.0■*

1.40

27%

5.1

3.60
1.36

26%

Miss. Valley Barge Line

36%

0.75

32%

2.00

fO.94

4.7

1.05

4.0

Natural gas distributor
Rolled glass, wire

glass, etc.

Steamship operators

50 '

0.30

Commercial carrier;
rivers •

Mississippi

freight

Valley

Public

Service Co
10

3.0

Operating eleotrlo utility

Missouri-Kansas

Pipe Line—

0.65

14%

4.6

Electricity and natural gas

Mobile Gas Service Corp.

..4

Operating publlo utility

2.00

4.4

Mode O'Day Corp.-

0.95

7.0

1.50

3.1

Mohawk Petroleum Corp.

0.60

2.0

Oil produotlon
Mohawk Rubber Co

f0.93

Women's

3.25

4.0

Metropolitan Storage

apparel

2.1

Monarch Mills

1.50

39%
36%

3.8

Montana Flour Mills Co.—

Fabricated

structural

steel

0.75

3.1

0.20

1.0

fl.09

67%

1.8

0,80

13%

6.0

Sheetings and print cloths

19
31

1.80

5J0

Flour and feeds

Monumental Life Ins. (Bait.)
Life Insurance

1.28
0.50

28%
10%

4.5
4.8

calen¬

Moore

Drop Forging Co.

Light machining and drop forgings
-

Moore-Handley Hardware—

0.80

1.5

Produces mills, cranes,

4.00

13.8

0.45

5.8

1.40

28%

4.9

Hardware wholesaler

Morgan Engineering Co.

Ware¬

etc.

not complete as to possible longer record,
dividends, splits, etc.
Including predecessors.

Details

t Adjusted for stock

General warehouse
Details not complete as to

possible longer record,

5.3

stock dividends, splits, etc.
Including predecessors.

Continued

t Adjusted for

and

sheet metal products

Multiple

line

fire

and

0.80

4.2

2.65

Maine Bonding & Casualty Co. a20

253

1.0

casualty

Manufacturers Life Insur. Co. *50
XJfe Insurance

Mfrs. Natl. Bank of Detroit-

1.80

43%

4.2

Manufacturers & Traders
Trust Co.

ucts, Inc.

—

1.20

26%

4.5,

2.00

52y2

3.8

(Buffalo, N. Y.)

Manufacturers Trust (N. Y.)
Maremont Automotive Prod¬

1.45

6.6

Auto parts

Marine NatL Exchange Bank
of Milwaukee
—.—

3.00

4.3

Market Basket (Los Ang.)_.

•f0.69

2.2

1.10

18%

6.0

Retail market chain

Marlin-Rockwell Corp.—
Mfr. ball and roller bearings

Marshall & Ilsley Bk. (Milw.)

fl.76

2.7

11.00

350

31.4

21
*14

1.50

40%

3.7

1.75

6.7

fl.90

32y2

5.8

Maryland Trust Co. (Balti.).

2.00

541/2

3.7

Massachusetts Bonding & In¬
surance Co.

1.60

39y2

4.1

1.50

2.1

4.50

108

4.1

0.20

Marshall-Wells Co.

—

Manufactures and wholesales
•

hardware and kindred lines

Maryland Casualty Co.
Diversified Insurance

Maryland Credit Finance
Corp.
Auto

financing

Maryland Shipbuilding &
Drydock Co.

Ship construction, conversion,
repairs and manufacturer of
industrial products

Diversified insurance

MAKERS

FRITOS

CORN CHIPS,

POTATO

Massachusetts Protective As¬
i.:
sociation, Inc.!
'

CHIPS,

AND

OTHER CONVENIENCE FOODS

Accident and sickness Insurance

Massachusetts Real Estate Co.
Real estate

Mastic Asphalt Corp
Imprinted brick and Insulating

•

Details not complete as to possible longer record.
9 Adjusted for stock dividends, splits, etc.

including predecessors.

•

■*".

4.7

1.9

48%

tires, tubes, camelmaterials

0.80

service, religious
greeting cards

mfg.:

children's

back and repair

(Mass.)al09
—

Rubber

and

rolling stock

Mahon (R. C.) Co..

3.0

120

Holding company

Missouri Utilities

and eleetrlc

Magor Car Corp—

3.8

30%

Manufacture and sales of funeral

15%

1.45

6.7

chain

Madison Gas & Electric Co—

6.1

58%

a40

Mississippi Shipping Co.

tele¬

and

Merrimack-Essex Co.

0.60

16%

1.50

1
—

Mississippi Glass Co.

Hading Drug Stores Co.

5.0

4.7

*22

4.5

(Indianapolis)— *34

house Co.

Well-known book publisher

—

Co.—

66%

Strip metal

Macwbyte Co—

Falls

3.00

Metals & Controls Corporation 20

tenance

Macmillan Co.

Trust Co. of Syracuse—
Meredith Publishing Cp

dars and

Alka Seltzer

Miller Mfg. Co.———«—-

4.8

Merchants National Bank &

director

fabricated steel products

Macco Corp.

45%
48

f2J26
2.25

22
f

5.00

—

Merchants National Bank

Messenger Corp.

Operating public utility

3.9

;

fl.OO

Laboratories,; Inc.--—

Merchants National Bank of

radio

23%

——

and

0.90

•„,-...-

Mfre. of reclaimed rubber

3.0

Merchants National Bank in

Publishing

3.2

-' 1

.Ct

vision broadcasting

Natural gas supplier

2.1

128

—

Trust Co.

1.25

;

—1——

-—-

104

Merchants National Bank of

Mobile

fO.94

Topograph Co

Insurance Co. of N. Y.

Boston

(Mass.)

Operating publlo utility

1.20

Fire and allied lines of Insurance

Chicago

Pacific Coast

Ludlow Mfg. & Sales....—.

2.6

1.00

Middlesex County Natl. Bank

Tools.

Merchants and Manufacturers
2.8

of Illinois

Minneapolis Gas Co

Fire and allied lines of insurance

Louisiana State Rice Milling

Louisville Title Mortgage Co.

(Colorado)

63%

Operating publlo utility

Millers

Merchants Fire Insurance Co.

Operating public utility

Title Insurance

Merchants Fire Assur. Corp.-

Telephone Co.

3.2

Small loans and general financing

Lorain Telephone Co.

18
20

Richmond (Va.) department store

fl.74

24,

5.7

6.2

2.5

Mercantile National Bank at
—

8L
1958

fl.65

Tools for auto and engine repair

157

of,

Mercantile Trust (St. Louis)
Merchandise National Bank

Lager beer

Middle States

Miller & Rhoads. Inc..—

3.0

candy field

2.00

Mercantile-Safe Deposit and
Trust Co. (Baltimore)——

pipe

f3.98

hotel

Mercantile National Bank
2.95

transient

and

1958

0.275

Electric and gas utility

Miles

Melrose Hotel Co.

Dec.

Dec. 81,

Midwest Rubber Reclaiming-

Operating public utility

8.8

Paymts. ts

Middlesex Water Co.

Meadville Telephone Co

1958

—

81,

Yield

Based so

tion

Sheet tubing

4.8

1.1

Meyercord Co,

Mich. Natl. Bank (Lansing).
Michigan Seamless Tube Co.

Manufacturers Ss distributors
spices, extracts, tea, etc.

Dallas

Lone Star Brewing Co.

Railroad

McCormick & Co. Inc

Loft Candy Co

Meat and meat processing

125

Lock Joint Pipe Co

0.77

Dec.

Divs, Paid

Michigan Gas & Electric Co.

sulphate

2.65

Grocery chain

Oilfield

ammonium

11.00

Operating public utility

Automotive

—

Chicago

6.8

Zinc smelting and rolling. Manu¬
facturers of sulphurio acid and

Dept. store chain In New England

Loblaw, Inc.

Years Cash

Decalcomanlas

31,

Quota

Extras for
12 Mos. to

secutive

1958

Conveying equipment

Matthiessen & Hegeler Zinc
Co.

Dallas

Lincoln Telephone &
Telegraph Co

«
1.50

Dec.

Lumber manufacturer

Springfield, I1L real estate

Lincoln Stores, Inc.—

Ludlow

Mathews Conveyor Co.——_

Lincoln Square Building Co.

XUce and

1958

Medford Corp.

Lincoln Rochester Trust Co.

Leader In the

1958

Including
No. Con-

Paymts. to

Dec. 31.

Divs. Paid

Based

Western softwood lumber

—

tion

Dec. 31.

McCloud River Lumber Co._

Co. of Fort Wayne
Lincoln NatL Bank & Trust

12 Mos. to

Cash Divs,

% Yield

Quota-

Years Cash

Mayer (Oscar) & Co.; Inc.—

Lincoln Natl. Bank & Trust

Life Insurance

Extras for

secutive

TK OVER-THE-COUNTER MARKET

•

Approx.

Including
No. Con-

(1885)

Established

1932

page

The Commercial and Financial Chronicle

(1886)
V

'.-X..

Cash Divs.

from page 37

Continued

Approx.
% Yield

Including

•■XX

THE OVER-THE-COUNTER MARKET

No. Con-

Extras for

secutive

■

12 Mos. to

Years Cash

1958

PROGRESSIVE AND PANORAMIC

Cash Dlvs.
Extras for

secutive

12 Mos. to

Years Cash

Quotation

Dec. 31.

Divs. Paid

1958

Dec. 31,
1958

Manufactures

■-■

376

A'' i

•

fl.96

4.8

General contractors,

1.60

4.2

■■'/XY.'-'v-

heavy

Class A voting

/.'-v-v/;■

construction

//-'^

Mosinee Paper Mills Co

■

•

1.40

•'

Production

mercial

Public utility,

and

dipslay

0.70

9.3

1958

'X/

films

4.00 '

'■

Acceptance Corp...
loans;

Finance,

and

f0.14

1.8

1.25

24%

natural gas distributor

2.15

7.2
1

■

National Aluminate Corp

44%

1.25

2.8

Water and petroleum treatments
and industrial ohemicals

National

American

Bank

New Orleans

in Memphis

*28

16.00

435

3.7

f2.89

110

2.6

—

2.00

26%

fl-14

4.3

2.00

of San Antonio

1.60

3.0

National Bank of Detroit—

2.00

66%

3.0

3.7

42%

1.50

fO.99

of Washing¬

Bank

2.00

0.40

Accident,

health,

casualty

1.50

3.2

lnsur.

National Chemical & Mfg.Co.

15%

f0.48

2.40

Trust Co. (Albany, N. Y.) 104

1.10

29%

3.8

117

1.60

1.4

Diversified Insurance

National Food Products

f1.09

23%

Manufactures

Nhtional Lock

(Nashville)

f 0.565 121

*34
._

0.40

22%

1.8

Mortise lock*

Banking Co. (Newark).— 154

National Oats Co.

3.00

4.8

0.60

3.5

Co.

160

0.60

46% \

2.75

5.9

Screws, bolts and nuts

NatL Shawmut Bk.

(Boston) *62

National Shirt Shops of DeL.

50%

2.20

11%

0.80

4.4

:-;X:
66

t Adjusted for stock dividends,

31%

Tannery

10.5

0.58

2.3

IXX-^X

--"X-

34%

1.60

1.50

30%

1.35

18%

7.2

1.25

36%

3.4

*35

2.00

4.9

______

—

Life, accident and health

3.9

300

0.7

4.3

90%

4.0

23
28

•'

Company

4.8

1.50

Over-The-Counter Consecutive Cash

3.50

Payers From 5 to 10 Years Appeat in the

3.70

5.5

1.10

21%

5.2

■

XXX;
0.90

18%

-X'/"
&

rasps

Second Table

X-X-

4.8

Ohio Water Service
Retails

'XXX''7
14

1.00

5.0
:■

2.00

38%

5.2

f0.19

20%

0.9

2.00

37%

1.55

28%

•

:-v

■

of natural

■.

1.40

0.925

2.6

a96

2.50 "

fl.40

3.2

1.60

145

1.00

60 r

1.7

.0.80

24%

3.3

2.10

41%

5.1

2.40

67%

3.0

1.00

5.0

1.20

4.1

0.30

0.8

eO.90

22%

3.9

Onondaga

6.5

1.1

* '

1.20

30%

3.9

0.35

7.6

sllverplate

Orange County Telephone Co.
Operating public utility

Orange & Rockland Utilities,
Co.

Inc.

Life, accident and health

fl.36

39%

1.00

17%

12.00

Orangeburg Manufacturing

3.4

Co.

Operating publlo utility

Manufacture bltumlnlzed fibre

Northern Oklahoma Gas Co..

5.8

pipe, conduit and nnderfloor

Operating publlo utility

Northern Trust Co.

6.9
not

Pottery Co

China tableware

hoists

Northern Insurance (N. Y.)_.

Details

4.4

—

Manufacture, sterling,

5.4

0.65

Engineering Works *19

and

and stainless tableware

Northeastern Pennsylvania
Natl. Bank & Trust do
Cranes

1.50

National Bank—

Oneida, Ltd,

Reinsurance

Northern

23
,

Brewing

3.7

12%

4.7

America——T—— a47

Omaha

12%

Republic Life Insurance
a23
Company (Chicago) ___;
Life, accident and-health
; X

•

0.33

gas

0 60

Olynipia Bt^wirig Co.___

3.4
•

5.2

Old

.'■*,,

41%

30%

Life, accident and health

;

1.60

(Grand Rapids)——

5.4

5.0

*17

Old Line Life Insurance Co.

hard¬

ware

Retail distributor

>•

29%

Old Kent Bank and-Trust Co.

5.3

tl.48

Hydraulic machinery '

Marked coal

'.XX

Page 47.

wholesales
X
v

Old Ben Coal Corp

v;X :/■ vX" •X.X

variety

water;

Oilgear Co.

4,8

0.50

treated

untreated

':..vi-.^^.

Starting

saws

North,

Ave.,

Dividend,

Fire brick & refractory materials

complete

Orpheum Building Co—_—

(Chicago)
as

545

2.2

San Francisco office-theatre
"

to possible longer record,
etc.

bldg.

Details not

complete as to possible longer record,
dividends, splits, etc.
Including predecessors.
1

t Adjusted for stock dividends, splits,

t Adjusted for stock

Including predecessors,

splits, etc.

6.00

Ohio National Life Insurance

X- 5.2

el.50

North & Judd Mfg, Co..

Casualty Insurance Co.

Life. Insurance

North American Refractories

furnishings

2.5
4.8

■

Ohio State Life lnsur. Co

Insurance Co.

Details not complete as to possible longer record,

60
21

(Brookline, Mass.)

0.4

Participating & uon-partlclpatlng

•

3.40

Northern Ohio Telephone Co.

National Screw & Mfg. Co.—

Chain, men's

Northern Life Insurance
16

4.9

1.50

Ohio Leather Co

Diversified insurance

National Reserve Life Insur¬

Gears, speed reducers, ete. '

5.0

Furniture and bedding springs

Cereals, animal feeds

37%

in-

Northeastern Ins. of Hartford

Co.

20%

Annual

rate

is indicated.

Annual

rate

indicated.

Form R. W. Edwards Co.
R. W. Edwards &
been

formed

with

Co., Inc., has
offices

West 90th Street, New York

BANK and INSURANCE

Established

to engage in a securities business.
Officers
are
Robert
Edwards,
President, and Max Schonberger,
Secretary-Treasurer.

AND

/dealer service
in

all classes of bonds and stocks

(Special to The Financial Chronicle)

MOLINE, 111.— World Securi¬
ties, Inc., has been formed with
offices at 417 Seventeenth Street,

strom,

including

public

utility—railroad—industrial
foreign issues

Partiadarly Adapted to Service Firms

are

President

and Secretary;
Pet&rson, Vice-President;
Will F. Skinner, Treasurer.7

Ivan C;

Company

BROADWAY, NEW YORK 4, N. Y.

Telephone: DIgby 4-2420
Direct

Telephone

BALTIMOR1 — BOSTON—HARTFORD:

and

the
Enterprise 7848

BLUFF, Ark.—Lovan Se¬

curities Co., Inc., is engaging in a
securities business from offices in
Simmons

National

Bank

Building. Officers are James G.
Lovan,
President,
and
Marie
Bomar, Secretary-Treasurer.

With Retail Distribution

•

-v.

Your

Form Lovan Securities
PINE

Teletype: NY 1-3430

to engage in a securities business.
Officers
are
Leonard
H.
Eng-

Edwin L. Tulro

Offer

comprehensive investment

Form World Securities

STOCKS

1928

City,

Inquiries Solicited

FV FOX &
120

CO.,

BROADWAY, NEW YORK 5, N. Y.

Telephone

REctor 2-7760

cream

Ohio Forge & Machine Corp.

4.6

Norfolk County Trust Co. ;.X-X>-

0.5

National Newark & Essex

ance

43%

1.90

North. River Insurance Co... 121

/Life, accident and health

1.6

LOO*
XX "

(Toledo) —1—————_

2.6

2.00

North Shore Gas Co. (111.)..

•

Diversified Insurance ;

Diversified insurance

Co.

0.60

109

Chicago rekl estate

stores

;

files,

Michigan
Corp.

4.2

Holding company; chain food

National Life & Accident Insurance

4,7 X

21%

life

marine, multiple peril
and allied lines

Manufacturing

Corp.

and medicated

Real estato

Life, accident & health

NatL Fire Ins. Co. of Hartf'd
*

Fire Ins

Nicholson File Co

3.0

—

1.00
:

Noyes (Charles F.) Co.______

North American Life

NatL City Bank of Cleveland
National Commercial Bank &

and sale'-of Portland cement

Publishes "The New Yorker"

3.1

Paints and related products

r/'-

•

No-Sag Spring Co..

National Casualty Co

' 4.4

13%

1.00

—

Newport Electric Corp

7.6

Ohio Citizens Trust Co.

New Yorker Magazine,

4.7

Animal prodUCtf

2.7'

See Bank's advertisement on page 47.

900

ton (Tacoma)
National By-Products, Inc.—

Noxzema Chemical Co., CI. B

Ohio

Rhode Island utility

(Ohio)
National Bank of Tulsa—

;

; '
L 23

Cement Co.
Mfr.

6.5

surance,

2.3

National Bank of Toledo Xx"

: 0.60
:

New York Trust Co

National Bank of Commerce

National

New York Fire Insurance Co.

3.6

2.60
~

Electric and Has public utility
X '
Northwestern States'Portland

cream

TRUST (PATERSON, N. J.) a90

Fire,

of Norfolk

27%

Operating publlo utility In Conn.
NEW JERSEY
BANK
&

Bank of Commerce

Distributes "Noxzema" shaving

Operating public utility In Conn.
New Haven Water Co

to New Orleans

K
v.
1.80

except

2.4

Northwestern Public Service
-

operating utility companies

4.1

X;'5X■ v\
./X.
38 XH 5.3
X* XX,X V

Lime products

National Bank of Commerce
National

100

46%

1.90

.X.*X.

Life insurance

Owning investments In several

lines

Insurance Co. (Minn.)

2.8

Gas & Electric

insurance

1.00

1.50
■/X/X:-v "X

Co. (Milwaukee)

surance

V :XX"
2.00

Association

All

4.7

Multiple line insurance V'" *
/
Northwestern National Life

Telephone

New Hampshire

42%

Insurance Co.

' /<■:■ /•/:•/■ \

;•

0.68

"//

New England Lime Co

2.00

Northwestern National In¬

New Haven Gas Co.,

NatL Bk. of Comm.(Houston)
National Bank of Commerce

5.5

—

New England

Cottonseed oil

Mystic Valley Gas Co

36%

Operating public utility

5.1

insurance

Murray Co. of Texas

2.00

V'*'/'"-'7' /*•/,.. /; ^ ;/■<:/

Co,

Attto financing and Insurance

Murdock

6.8

4.9

XXX'/

Brunswick

New

4.7

18%

40%

Machine tools

Motor Finance Corp

1.25
2.00
■>

New Britain Machine

com¬

—

Northwestern Fire & Marine

distribution

1958

1958-

Fire and casualty Insurance

Casualty—

gas

4.6

New Britain Gas Light Co.—

Motion Picture Advertising
Service Co.

26%

ry/ /v

Diversified Insurance

Sulphate pulp and paper

Northwest Engineering Co.,
Class A

3.8

Excavating machinery

stock

Pulp and papers
New Amsterdam

4.2

1.20

"X,; v>
15

Quota-

Divs. Paid

field

Corp

Nazareth Cement Co
Pennsylvania producer
fiNekoosa-Edwards Paper

Industrial loan company

Morrison-Knudsen Co., Inc...

oil

Approx.- Vi

Based on,
secutive 12 Mos. to / tion; Paymts. to
Years Cash Dec. 31,
Dec. 31, Dec. 31;

1958

Diversified insurance

2.6

sells

Midwest storage facilities
National Union Fire lnsur—

10.00

>2.34

and

equipment''
National Terminals

Paymts. to
Dec. 31,
1958

Morgan (J. P.) & Co. Inc
Morris Plan Co. of California

National Tank

Approx.
% Yield
Based on

Including
No. Con-

(Newark)

•

147
12

National State Bk.

•

% Yield

Extras for

%
—

Including

Based on
tion
Paymts. to
Dec. 31, Dec. 31.

1958

■

CashDfvs.

"X X
No. Con-

Quota-

Dec. 31,

Divs. Paid

Thursday, April 23, 1959

...

Teletypes

NY 1-944 & NY 1-945

Number 5840

Volume 189

The Commercial and Financial Chronicle

...

(1887)
T

Cash Divs.

the qwer'the-gounter market

secutive

progressive and panoramic
Cash Divs.

Approx.

Including
No. Con-

Extras for

secutive

12 Mos. to

Years Cash

4 1958*

;

Dec. 31,
*958

Manufacturers
brushes

and

industrial

foundry

;

and

4.4

railway

Mir.

7.0

30%

1.75

5.2

•'

1.60

3.6

27?/2

1.00

0.90

22%

2.40.

—

10.00

Planning mill products
31
12

1.00

391/2

4.0

f0.98

Package Machinery
Automatic wrapping' machines

Packard-Bell Electronics^

4.7

1.00

171/2

5.7

0.50

28%

1.8

natural

23
::30

0.45

waxed

Water

6.2

0.50

Pheoil

4.3

11%

and

,B$er prgdtfpers x .;
Peden Iron & Steel Co

1.25

7.1.

1.00

*31

Co.—

-----

Porcelain,'enamel*and ceramic frits
*

;

f2.00

*15

0.12

3.7

2.50

45%

5.5

'Inc. —.1-——'

0.90

27%

3.3

;

x ;

Q.90

3.25

•'

5.1

2.75

106

0,90

2.6

Mulliken

3.1

end

1.40

a22

equipment

metal

1.Q0

24%

1.50

4.0

——

GULF LIFE

3.00

78%

3.8

not

JEFFERSON STANDARD LIFE
STEVENS

MARKETS

complete

0.10

:';X

tylembpr Midwest Stock Exchange

Wire

All

4.2

1.00

17%

has

- r

companies

* \

5.6
t

...

fl.77

34%

5.1

—

1.20

16%

7.3

——

4.00

5.0.

J,.00'

Laundry Co.—

Laundry and dry cleaning

1.40

18%

7.7
i

not complete as tq

possible longer record.
t Adjusted for stock dividends, splits, etc.

We maintain

on page

continuing interest in

Struthers Wells

Corp.

Common

Mass.—^Horner

Inquiries invited

t» l. watson & co.

affiliated

become

Established

1832

MEMBERS

/ New York Stock Exchange

•

American Stock Exchange

25 BROAD ST., NEW

Telephone WHitehall 4-6500

YORK 4, N. Y.

Teletype NY 1-1843

With Robert Cornell
(Special to The Financial Chronicle)

DENVER, Co|o. —James R.
Cleaver
has become associated
with Robert J. Conneil, Inc., Na¬
tional Bank

Bui|ding. He was for-.

merly with Frank N. Warren Co.
and

Over A Quarter Century

Garrettrjlromfield & Co.

1930
Now With

Coqnnte ml Minieiinl SMirifiw

1959

Wood, Struthers

(Special to The Financial Chrpnicle)

SAN

FRANCISCO, Cal.—Derek

OVER THE

C. Parmenter is now with Wood,

Specialists in
COUNTER SECURITIES

& Co.r Russ Building.
past he was with Mitchum,
Tully & Co.

Struthers

In the

HIRSCH
Members New

CO.

York Stock Exchange and Other Exchanges

i
"

25 BROAD

STREET, NEW YORK

Telephone: HAnever 2-0600

WASHINGTON
FORT PIERCE

Teletype: N.Y. 1-210

BALTIMORE

LAKE WORTH

MIAMI BEA6H

GENEVA

LONDON

( '

ward C^ibcart, jr., is conducting :
a securities business from offices
at 87-16 Lefferts Boulevard.

PALM BEAOH
AMSTERDAM

Edw( Cathcart Opens
RICHMOND HILL, N. Y.—Ed-'

N. Y.

[•

New York

Washington

Baltimore

Fort Pierce

Miami Beach
Lake Worth

Palm Beach

S. Y. T«Mm t-HIH

Tel. HAntver 2-4IN

WIRM STSVEM
DENVER

Servjce;

r.^

Joins E. M. Scanlan
(Special to The Financial Chronicle)

Direct Wire

Established 1930

37 Wall St., New York 5

Correspondents: HAVANA, CUBA

DENVER "Colo.^-Hugo H. Soilhas joined tjie staff of Earl M.
Scanlon & Co., Colorado National
Bank

Building. *

•

LOS

—

Lowell, Murphy h Company,

ANOELE8

—

Inc.

Marache, Dofflomyre 0 Co.

6.3*

valley Mould & Iron Corp.

Offices

Underwriters, Distributors and Dealers

„

Continued

changeSi He was previously with
Joseph M. Batchelder Co., Inc.

Richmond

New York and Boston Stock Ex-

CHICAGO

Raleigh

Greenville

28%

and

Corp.,

Wainwright & Co.,
State Street, members of the

Direct

1.20

Common

Whitman
with

INCORPQB^TEiP

Colombia

substantial
Interests
in
Cleveland-Cliffs Iron Co., Detroit

Progress

2.9

BOSTON,

'.7

Atlanta

3.4

(mfrs. gas)

(Special to Tub Financial C/agoiuaE)

YORK

14%

Wainwright Adds

r/s. Dickson & Company
NEW

0.50

Public cold -storage warehouse

to possible longer record,

(

Malkan in I|iy. Business

Estiffilishcd 19 f 9

CHARLOTTE

Produce Terminal Cold Storage Co. (Chicago)

President and Secretary.

IfISlJI|ANC^ CO.

4.8*J

0.40

Operating public utility <

Maljkgn & Co., Inc., is conduct¬
ing a
securities business from
offices at 565 Fifth Avenue, New
York City. Officers are Arnold G.
Malkan, President and Treasurer,
and Audrey M. H. Malkan, Vice-

INC., W Common

:,^r2

tools, bolt cut-

Princeton Water Co.

for stpek dividends, splits, etc.
including 'predecessors.
'
*
"

Piano and organ keys

t Adjusted

INSURANCE QQ.

hand

Pratt, Read & Co.—

fabrics

Common

Mining & refining/ sale of potash

1.2

"GIANT PORTLAND CEMENT,

2.7

Potash Co. of America—.——

41%

Common

2.9

54%

Owns

? Details

COLONIAL STORES INC.,

fl.48

related fifldt

2.7

10.48

trading market^ in:

f0.86

equipment and hydraulic power

Steel

fasteners

topis

We maintain active

Portsmouth Steel porp

3.0

3.5

Bpctria utility

5.0

corrosion

26%

28%

Sulphite & Paper

Public utility

0.80

pot complete as to possible longer recprd.
Adjusted lor sioctr dividends, splits, etc. ' /
*

1.00

Portland General Electric—-

.♦Details

*11

Portland Gas Light Co.

forg¬

Manufacturing Cp—

Details

5.7

tools

4.5

♦

45%

Porter (H. K.), Inc. (Mass,)—.*21
Mechanics'

softeners

Textile

2.60

tool steel, copper and alloy
Uietals,
refractories,
saws
and
tools, fittings, wire rope and re¬
lated products

Phoenix Silk Corp.—

5.0

101

and

Transportation
of
persons
/Street railway nnd motor bus

*—

Manufactures electrical equipment,
industrial rubber products, steel

Insurance carrier (except life)

Pendleton^JtooI Industrie!,

2.50

Porter (H. K.) Co. (Pa.).

Philadelphia Suburban Water *19
Operating public utility
Phoenix Insur. (Hartford).-86

3.0

4.5

3.00

West Coast lumber mills

41%

2.6

Manufacture of rope, harvest
twines, twisted paper products

1.90

3.8

26%

3.f

Pope & Talbot, Ind

2.1

25%

0.54

Transportation Co.

Diversified'inourgncf
lourancf

1.00

Philadelphia National Bank. 115
Philadelphia Suburban

4.2

Plymouth Cordage Co

Exhibition and office building

6.6

19%

Hardware

;

5.1

0.60

petroleum

Philadelphia Bourse
"

1.30

310

2.00

11%

(era, body and fender repair tools

Manufacture

jeu^tom made papgrg
Brewing Co

11%

Planters Nut & Chocolate™
Peanut products
:

Qprp.

resistant

8.00

17"

Plainfield-Union Water Co...

Service, Inc.—

crude

0.425

Lightweight papers

Pfaudler-Permutit Co.

Pearl

Mechanics hand

4.5

Port Huron

•

Railroad track equipment,
ing and machinery

4.1

146

6.00

Textile manufacturing

•

1.8

88%

Chemical compounds

Pettibone

Pacqlet Manufacturing Co.__

Corp.

gas

Petrplite

Panama Coca-Cola Bottling.
Beverage bottling
>
Paterson Parchm't Paper Cp.

and colors- -:

1.50

6.1
3.7

Pittsburgh Fairfax Corp.—

4.00

,18

—__

Producing

Peprless Insura|ic.$

4.5

Bankers,
:

5.5

Petroleum Exploration

-Radio, TV-electronics; garage door
openers; hollow core doors

■

Industrial

piquefied petroleum- gas

20%

and

Vegetable parchment,

58%

Popular candles

Vegetable Oil Corp.__

115

Owning and operating apartment
building

—

Petrolane Gas

7.00

3.0

Operates Diesel line In Cerolinss

Peter Paul Co.—____

utility, (predominantly
' • "

0.60

Water utility

Consumer finance

3.2

L60

(Chicago)
2.65

•—

Personal

4.0

250

Inc.

Pacific Natl. Bank of Seattle

Pemco

National

manufacturer
'

0.30

Financing company
Pioneer Trust & Savings Bank

Cement and gypsum products

6.5

0.80;

trading

2.9

39%

Permanente Cement Co

Pacific Power & Light Co—

Vegetable fill
manufacture

Pioneer Finance Co.__

sulphite

Soft drinks
: r
Perkins Machine & Gear Co.

;

Pacific Lumber Co.

Pacific

and

Precision gears

V; Express Co,
.Motor freight; Western States

Public

soda

3.9

;

UqpPavmls. to
31, Dec. 31,
195!
1958

Dec.

Texas

Pictorial Paper Package Corp.

1.15

Pepsi-Cola General Bottlers,

Multiple line insurance

^electric) •'*

bleached

woodpulp

Inc.
;u.

Yield

Based

Paper boxes

4.0

Diversified insurance

Iniermountain

4.7,

Telephone utilities

Pacific Insurance Co. of

25%

Louisiana and

Piedmont & Northern Ry.___

Bank
(Pittsburgh).
Peoples National Bank of
/<
Washington (Seattle)
Peoples Telephone Corp. (Pa.)

Pacific

1.20

& Trust Co.

Pacific Employers Insurance

New York

California,
holdings.

York

New

Peoples First

Foundry Co._.
cars

Pickering Lumber Corp

6.0

chem¬

Operatlng publlc uUltty in Penn-

machinery

1958

Penobscot Chemical Fibre Co.

Quotas and Minnesota

Pacific Car &
Makes

19%

refineries;

1.20

"*.

•ylvanla and

ilpe of fork clothing

matched sets

oil

plant* x

Voting

Otter Tail Power Co
Utility;

mill*,

Pennsylvania Ga§.Co
.

0.85

1958

secu(.ive \2 Mos. to
Years Cash Dec.'31,
Divs. Paid
1958

Oshkosh B'Gosh
Complete

Steel

ical

O$born Manufacturing Co— ;

Paymts. to
31, Dec. 31,

Quota-

Pennsylvania Engin'g Corp..

Paymts. to

Dec. 31,
J95$

tion
Dec.

Extras fog

No. Con-

,(
#>''

Approx.
%

Including

Based on

Quota-

Dec. 31,
1958

tion '

Dec. 31,

Divs. Paid

Based

Quota-

12 Mos. to

Divs. Paid

% Yield

Extras for

Years Cash

Cash Divs.

Approx.

Including
No. Con-

39
J

4Q\

The Commercial and Financial Chronicle...

(1088)

Cash Divs.

Continued from page

Approx.

Including

No. Consecutive

12 Mos. to

Years Cash

Divs. Paid

Dec. 31,
1958

tion

31,

Providence Washington Ins._

31,

Dec.

1958

31,

Years Cash

1958

Divs. Paid

20%

5.9

Sea train Lines

0.85

20%

4.2

Second Bank-State St. Tr. Co.

13.30

4.5

Transport!

Distributes natural gas

Manufacturers of construction

Rochester Button Co

0.7

1.00

12%

8.0

1.00

6.3

Buttons

Name

1.75

39%

changed in January
Bank (Cincin-

was

1959 to Provident

& Trust Co.

(Phila.)

Public Service Co. of N. H.—
Electric public

2.40

4.5

1.00

18%

f0.78

28%

2.7

utility

$*ublic Service Co. (N. Mex.)

valves,
parking meters

2.50

15.6

*17

fl.02

2.5

Punta Alegre Sugar Corp
Cuban holding company

Purex Corp.

—

Makes "Purex" and "Trend"

Purity Stores, Ltd

19%

0.40

*11

Filters ell, gas and

34%

f 1.76

(Pa.)-

48%

Quincy Market Cold Storage
Ralston Purina

2.00

5.6

2.8

51%

1.45

grocery

1.10

25%

4.3

1.50

6.0

0.50

0.65

6.5

1.60

2.5

1.81

71%

2.5

0.20

0.3

(Mass.)-

0.60

32%

1.9

machines

Reed (C. A.) Co., class B
Crepe paper

Reinsurance Corp. of N. Y.—

2.8

reinsurance

Reliance Varnish Co.—
Paints, varnishes and enamels

Republic Insurance (Dallas)Fire and casualty insurance

Bank

National

(Dallas)

Republic Natural Gas
Natural gas and

California

1.00

13%

7.3

Buppllera and distributors of oilwell
and
Industrial supplies
—

4.3

0.40

11%

3.4

Selected Risks Insurance Co, *26

1.20

3.5

Geophysical exploration and mfg.
of electronics products

Diversified insurance

Formerly Selected Risks Indem¬
nity Co. to Dec. 1957.

Seven-Up
Louis)

Bottling

Co.

2.00

5.6

0.70

19%

3.6

1.00

18%

5.4

6.1

scales,
processing
controls"""'"

and

(St.
31

0.60

4.00

0.25

Sateens,
Maine

and

cranes

Sherer-Gillett

4.3

0.65

15%

4.2

1.25

17%

1.6

1.25

27%

4.5

Rike-Kumler Co

{1.96

4.9

1.30

43%

4.00

78%

6.6

10.04

2.7

12.7

2.0

0.75

6.8

GG"

4.9
4.3

2.00

31%

6.3

1.50

6.0

1.55

5.5

7.4

beer

Operating public utility
Iowa livestock market

Minnesota operator

0.60

5.0

Sivyer Steel Casting Co

San Antonio Transit Co

2.40

4.7

Skil Corp.

Castings

Intra-clty busses

San Jose Water Works
utility

"Brew

and

32%

Sioux City Stock Yards

"Rainier"

1.40

Sierra Pacific Power

0.21

1.20

22
33

7.00

Fire and casualty Insurance

(water

Portable tools

company)

Miguel

Brewery,
(Philippines)

Smith-Alsop Paint & Varnish

Inc.
*11

1.20

2.70

9.8

12%

Co.

1.55

2.00

3.3

2.50

5.7

1.20

32%

3.7

1.50

34%

4.3

1.00

25%

3.9

0.80

15%

5.1

3.00

4.6

Paints and varnlshse

dairy producta

Sanborn Map Co

5.1

52%

Smith

Engineering Works—

Mining machinery

Fire Insurance & real estate maps

Smith (J. Hungerford)

1.00

18%

Hardware, locks and tools.
Savannah Sugar Refining—

5.50

2.00

63%

3.2

f0.95

32%

2.9

*17

1.00

17%

5.8

2.30

47%

4.8

2.60

25%
t

10.2

0.60

4.6

South Carolina National Bk.

2.60

3.3

South Texas Development Co.
Class B

1.20

52%

2.3

5.4

Ice
,

5.7

builders' hardware

(Ed.)

Scott &

Snap-On Tools Corp
and

distribution

mechanics' hand service tools and

Sonoco

items

Products Co

South Atlantic Gas Co
Operating public utility

(Charleston)

Diversified insurance

Pharmaceuticals

(Chicago)

f2.23

4.00

5.0

0.70

1.5

0.80

13%

6.0

Oil royalties

Southdown

Sugars, Inc.

Operates Louisiana sugar
plantation

Sears Bank & Trust Co.

•

Details not complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.
a

turbines and valves

Department stores; St. Louis,
Kansas City, Denver

complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.

Heavy manufacturing, hydraulic

Paper and paper products

Williams, Inc

Seaboard Surety Co._

not

fruits and flavors

Smith (S. Morgan) Co.—-—-

Scruggs-Vandervoort-Barney

Bmall metal stampings

cream

Manufacture

& Co

•

Manufacturer of soda fountain Ac

Three Milwaukee dept. stores

5.1

Power steam generators

22%

Name changed in March 1958 to
First Geneva Corp.

Searle (G. D.) & Co

•tisdon Manufacturing Co

1.50

Shuron Optical Co.

St. Paul Union Stockyards—

3.0

Dayton department store

ftiley Stoker Corp

8.3

Sick's Rainier Brewing Co--

producers

Livestock

7.1

Heavy metal stampings

refrig¬

St. Joseph Stock Yards Co-

San

commercial

Builds knitting machinery

products

Rieke Metal Products Corp.-

1.00

Vacuum cleaner manufacturer

18&

5.3

hoists

23
twills

St. Paul Fire & Marine Insur.

2.1

0.80

29%

Vulcanise r«

Electric

Mfg. Co
broadcloths,

Schuster

5.9

fl.56

Shaler Co.

Shepard Niles Crane & Hoist

8.4

10%

Shakespeare Co.
Fishing reels, rods and llnea

4.0

7%
99

0.60

beverages

eration

Sagamore

Operates Atlanta department store

Details

2.8

Corp

Scott & Fetzer Co.

Riegel Textile Corp.

•

2.00

Rochester

Manufacturer

Locks and

Rich's, Inc.

textile

10.7

0.25

Georgia operator

Manufacturers of rubber and
plastic industrial products

Wide line

3%
79

Schenectady Trust Co. (N.Y.)
Schlage Lock Co

Dog racing, near Boston

Rhode Island Hospital TrustRichardson Co
,

Security Trust Co. of

Sargent & Co

Republic Supply Co. of

Revere Racing Assn

5.2

grand stands and bleachers

Beer and

oil producer

4.3

Manufactures steel scaffolding,

Republic National Life Insur¬
Co.

2.19

royalty interests

gas

Industrial

Public

Dallas

ance

and

1.6

Bottler of carbonated

St. Croix Paper Co

chain

0.40

Oil & gas royalties

5.9

13%

0.80

Management of real estate

Republic

Affiliated with producers of many

equipment

Red Owl Stores, lnc

Writes only

gears

Safway Steel Products, Inc..
73

Makes button hole

steering

Women's coats and suits

2.0

1.05

of America

fleece Corp.

0.8

28%

Animal feeds, breakfast foods

retail

12%

1.60

Oil

35%

1.20

Seismograph Service Corp

Safety Industries, Inc

Real Estate Investment Trust

and

0.10

Manufacturers

Sabine Royalty

operation

Wholesale

distribution

5.3

6.8

2.8

1.30

Security Title Insurance Co-

22%

3.0

29%

f1.46

accident & health

Boston

and

Royalties Management Corp.

*13

Co.
Life,

4.0

nations

Quaker City Life Insurance

1.60

1.20

5.1

3.5

-fO.58

fl.47

air

Title Insurance

Royal Dutch Petroleum (NY)

Purolator Products, Inc—18

3.3

fO.39

5.6

4.6

Rose's 5,10 & 25c Stores, Inc.
Operates 145 stores In the South

2.0

4.3

Angeles

and

tools

power

Rothmoor Corp

California food chain

Los

1.80

Ross Gear & Tool Co. Inc—_

rotogravure printing plants

Owns

Security National Bank of
Greensboro (N. C.)

plywood doors and lumber

6.7

37 %

2.50

8%.

personal loans

Roddis Plywood Corp
Manufacture

publication Corp. vot

3.40

Saginaw—

New Haven

Meters,

Public utility

0.50

ships

Security Insurance Co. of

Rockwell Mfg. Co

5.3

1958

care

Boston

Provident Tradesmens Bank

Dec. 3i,

Security-First National Bank

quarrying and mfg. of
granite cemetary monuments,
markers, etc.

Rockland-Atlas Natl. Bank of

nati)

Granite

4.4

31,

1958

*18

freight

Securities Acceptance CorpInstalment financing and

Rock of Ages Corp

tion
Dec.

Based on
Paymts. ts

Second National Bank

Robertson (H. H.) Co

Multiple line Insurance

Provident Savings Bank
Trust Co. (Cincinnati)

Dec. 31,
1958

Quota-

Leading rice miller and packager

Dec. 31,

12 Mos. to

Dec. 31,

1958

Approx.
% YM4

Including

secutive

Paymts. to

materials

0.15

*'•.

Extras for

1.20

Roanoke Gas Co._

Dec.

No. Con-

a26

River Brand Rice Mills

1958

tion

Based

Based on
Paymts. to

QuotaDec.

12 Mos. to

Divs. Paid

% Yield

Including
Extras for

Quota-

Years Cash

Approx.

Cash Divs.

Extras for

secutive

OVER-THE-COUNTER MARKET
PROGRESSIVE AND PANORAMIC

Cash Divs.

% Yield

No. Con-

THE

Thursday, April 28, 1959

Including predecessors.

3.1

Southeastern Public ServiceNatural gas supplier
•

Details

not

complete

to possible longer record,

t Adjusted for stock dividends, splits, etc.

H. L. Robbins Adds

What is

(Special to The Financial Chronicle)

WORCESTER, Mass.—Joseph H.
v

staff of H. L. Robbins &

OVER-THE-COUNTER GROWTH STOCKS

Silverman has been added to the

lour

Co., Inc.,

37 Mechanic Street.

Bank of America

Trading

Two With First Southern

Our large

ful
•

'•

ATLANTA, Ga. — Thomas C.
Jones, Sr. and Thomas C. Jones,

andexperiencedTrading Departments may be Help¬

to you.

Why

not

let

know

We make primary markets in

of corporate securities.
Through a nation-wide wire

your
an

trading requirements \

extended list of all types

Jr.

have

become

associated

system, we

^Sddress: Mr. David D. Lynch, Manager, Dealer Relations Department.

Kidder, Peabody

Go.

FOUNDED 1865

CMembers "blew "York and cAmerican Stock

Exchanges

Street, New York 5, N. Y.

philadelphia

Nevada Natural Gas Pipe
Southwest Gas

chicago

los angeles

Line Co.

Corporation

(Special to The Financial Chronicle)

ATLANTA, Ga.—Walter L. Har¬
ris

has

Clement

become
A.

connected

Evans

with

Company,
11 Pryor Street, Southwest,

Inc.,

members

the

Midwest

First California Company
INCORPORATED

UNDERWRITERS

Stock

Exchange.

boston

Langendorf United Bakeries, Inc.

with

The First Southern Corp., 70 Fairlie Street, N. W.

Clement Evans Adds

provide broad insti¬
tutional and dealer
coverage—and cost you less.
We provide facilities for skillful
handling of large blocks with¬
out
disturbing existing street markets.

17 Wall

California-Pacific Utilities Co.

(Special to The Financial Chronicle)

Problem I

members:

american

stock

With Hornblower, Weeks

SAN FRANCISCO

(Special to The Financial Chronicle)

300 Montgomery St., Teletype SF 885

CHARLOTTE, N. C.—Gertrude
B. Chaffee has been added to the

staff

Hornblower

Johnston Building.

Weeks,

AND

DISftEBtaUTO RS

pacific coast stock exchange* midwest stock exchange
exchange

(associate)
LOS ANGELES

647 South Spring St.,

PRIVATE WIRES TO NEW YORK AND ALL DIVISION

Teletype LA 533
OFFICES

Offices Serving Investors Throughout California and Nevada

Number 5840

Volume 189

Continued

THE OVER-THE-COUNTER MARKET
Cash Dlvs.

Apprpx.

Including

% Yield

jrom first

fact remains

page

We See

that

late

year the
Bureau of Labor Statistics re¬

February

PROGRESSIVE AND PANORAMIC

(1889)

The Commercial and Financial Chronicle

...

this

ported its consumer price in¬
dex at 123.7 against a peak of
prosperity tends to produce in equipment needed to effect
123.9 some months ago-—and
-the business structure. It, so the increase. In other words,
it is clear that the figure may
it is said, is the thing which we made no headway during
well
soon
begin to climb
prevents indefinite growth of the recession in getting labor
-unsound
conditions
in
the costs down to more bearable again. The general wholesale
levels in manufacturing—and price index of the Bureau of
business structure.
Labor Statistics stands at very
V Have things worked them¬ quite probably elsewhere, too.
There are those who assert nearly 120 as compared with
selves out in this way this
something less than 117.5 at
time? Have we in reasonable that the recession was at least
the middle of 1957. We evi¬
in part induced by higher
; degree
thrown off the ail¬
costs of borrowed funds. For dently still have our price
ments which were responsible
problem with us.
for the downturn in 1957, and our part we have doubts, but
In light of the high level pf
> are
we
now
in a position to the fact is in any event that
our prices and their refusal to
interest rates are today not
proceed on a sound basis to
move downward in response
resume
full scale operations very far from their peak in
to depressed conditions, it is
on
a broad
front? This is a 1957 and are rising. The rea¬
hardly strange that imports of
fair question and an impor¬ son that such is the case is not
foreign goods still are running
tant one. Upon a correct an- that the Reserve authorities
at high levels and that our ex¬
have arbitrarily forced them
swer depends any sound judg¬
ports to foreign countries are
ment about
up, but simply that there is
what we shall
not being maintained at levels
have to face should another demand for more funds than
that can be regarded as satis¬
round of adverse conditions are readily available — with¬
out arbitrary creation of funds factory. We can see nothing
force a period of readjustin these figures to raise any
5 ment. Another bubble on top through commercial bank bor¬ doubt that we a r e
being
of
the - old boom revivified rowing for purposes and in
amounts not warranted in the priced out of foreign markets,
could hardly be regarded with
right and left. There are, for¬
'I equanimity. Information premises. And one reason for
tunately so we think, at least
needed for a complete judg- this is that the Federal Gov¬
some
foreign countries whicjh
ernment has developed defi¬
ment about the uses the rehave had the hardihood and
cent adversity served is not cits of very large proportions
the foresight to induce condi¬
and hence is forced to come
complete at all points, of
tions which tend to keep their
into
the
market
for
huge
course, but a good deal of in¬
prices within reasonable
formation
is
available
and amounts of funds in competi¬
limits. So long as this is true,
tion with private borrowers.
ought to be studied by all who
and so long as we refuse to do
care to take the longer view
The Price Problem
likewise, we shall have to ex¬
of things.
Another factor which had pect difficulty in selling
.

'•

...

No. Con- Extras for
secutive-12 Mos. to
Years Cash Dec. 31,
Divs. Paid"' 1958

Quota- Based on
tion
Paymts. to
Dec. 31, Dec. 31,
1958

1958

Southeastern Telephone Co..
public utility

Operating

Southern

Bakeries

Southeastern

.v'

Co..:___-_

baker

0.90

19 v.

3.9

|0.19

' 1.0

■

Southern California Water Co.
:

Operating public utility :

30.

Southern Colorado Povyer
i

and

So. New

y y

Co.„.^J

England Tel.;

.68

-y

Natural

production

gas

Life, health and accident--..
::

1.0
yv

•*

•

.*24

1.75

133

1.3

;

"-y

.•

•

0.20

Drug Corp.___ v 17
' ': 'y
Elec. Service.- 14

3.3

4.8

2.00

t0.625''f 16%

Electricity supplier
-...r';//•"-v.Southwestern Investment Co. ~ 23

Southwestern

15%

,f0.51
'*y1-

'-ut4

Insurance

Life

3.7

tfvrt'-

Sales, financing and personal loans

3.2
"

>4 /

141

(Dallas) -__.-_J_^_^-„_.:4ay;cl.80
Non-participating life \.
: '
;
Southwestern States Tel. Co. 1 13 '
1.20
Operating public utility
*.;* iCxbi.*■■■?■'.
Speer Carbon Co.___._--.,2.6.
1.00
Co.

...

■<

4.1

Wholesale drugs

Southwestern
-

'•

27%

•;

-- •

Southwest Natural Gas Co.__ ,* 12
i
Southern natural gas supplier ''
-V—
Southwestern

•*'/

and-' -

";v
Southland Life Insurance Co.
.

5.5

}

-'v.

•

4.6 ('"l—

_1.12

16,
•..'<> ••

dis-'

and

Mfg.' narrow, fabrics," tapes

Insurance

43%

f0.68

V •'-< *

webbings

' y

"3. 2.00

Co.-^-V?.' 3$ '1„■ .O'.IO "10

1.5

'■

tribution

■

r.v.

Southern Union Gas Co._„_i

Southern Weaving

:~Vv*7

CoJ^--^^--22

■Compressed gases '/

4.0

0.08

Communications services■

4.8

20%

0.825

Casualty insurance

Southern Oxygen

18%

15 y

Casualty Co.
(Knoxville, Tenn.)_
t__^

Fire

0.90

Electricity supplier '•

Southern Fire &
;

•

•-

1.3

■

■'

Spindale Mills, Inc
and

shirtings

Electronic

components.

1.00

15%

40%

2.9

34%

3.8

v
--y

Staley (A. E.) Mfg. Co._—_T
Processes

•

fl-32

55%

2.78

. .

4.9
.

One of the Sore

38y2

1.80

/ 33y2

2.00

59%

3.4

11%

Unquestionably, one of the
spots in the situation

5.4

7.1

— -

Stamford Water Co

sore

Operating public utility

(Detroit)
bonding

Casualty,
marine

and

spinning, dyeing and

0.80
•

:y 1
?
Insurance Co.-

Fire

Standard

'
-

;

Screws and screw machine

2.40

57%

0.75

6.3

Standard Screw Co

2.25

37%

6.0

products

Stange (Wm. J.) Co.—
colorings and seasonings

Stanley Home Products, Inc.

(Voting)
and

Manufactures

seils

and

polishers,

waxes,

brushes,

personal

toilpfviA1!

4.0

fO.96

8.0

and

4.®

6.00

275

business,

finance

hour

states

Southern

State Natl. Bank of El Paso.

State Planters Bank of Com-

Va.)

Corp.

—___.

and

packets

3.5

driven

1.85

8.0

prices higher and high¬
until buyer resistance had

boxes

set in.
•Details
t

not

held.
-

possible longer record. >
•
splits, etc.
r.
share of $6.50 preferred for each share of common
.
,
''

/Continued

—

on page

been able to relieve full

speed ahead (for the time

good being, at least) without
recession? hauling our economic

after

Marketing Department

Merrill

Lynch, Pierce, Fenner & Smith Inc.

Fortunately, there are fairly
reliable
4

figures

earners

NEW YORK 5, N. Y.

Offices in 112 Cities

receive in the manu¬

what wage-

facturing industries. .These
that

show
1959

1922

UNLISTED SECURITIES
SPECIALISTS SINCE

1922

the

middle

1957—when the recession was

getting under way—the aver¬
age hourly pay of wage-earn¬
ers

Retailing Over-The-Counter Securities

in manufacturing came to

■.

$2.07. In March of this year
the figure stood at $2.21. Now

Since 1939

a good deal of
comparative in¬

there has been

talk about the
INQUIRIES

INVITED

crease

outout

per

man

hour. It certainlv has not been

JOHN J. O'KANE, JR. & CO.
Members New York Security Dealers

Association

high

rate
rose

Broadway, New York 4, N. Y.

Phone—DIgby 4-6320

Teletype—NY 1-1B25

over¬

simply contact—

70 PINE STREET

complete as to

Adjusted for stock dividends,

f Flus 1/10 of

situation

of the factors which had

one

Lithograph

Stecher-Traung
Labels,

2.40

Have

had occurred had been

large expense in
costly equipment. All this was

*37

——

achieved at

(Richmond,

Trs.

merce

unions,

enjoying freedom from worry
this
about
competition, had for

...

Finance Corp.

Class A
Loans

40%

1.80

building trades, etc.

Hardware for

State Bank of Albany

Loan

2.00

156

Stanley Works

State

recession

heights labor

ma¬
been demanding and many months of
getting higher and higher Well, there has been some de¬ chinery. That is a fact which
should not be lost to sight
wages, more and more fringe
gree
of stabilization within
benefits, and had, in addition,
the past few months, but the amid current rejoicing.
been imposing more and more
restrictions upon production.
Productivity figures are not
very much to be trusted, but
it is clear that hourly wages
Interested. . .
had been moving up faster
than output per manhour—in any stock on these pages?
and, of course, such improve¬
ment in production per manFor latest prices, quotes, or information,

5.0

55
] *

Insurance

causing much concern by abroad and stiff competition
the recession got in this
country from foreign
under way in 1957 was the
goods.
tendency of prices to rise.
In a word, it seems to be
This was particularly true of
clear that we have resumed
consumer prices
at retail.
time

years

■...

2.75

New Jersey—,.

Diversified

Food

the

,»

bleaching

was

costs had reached. The
ir*sv..,

in 1957

and

fire

Insurance

Standard-Coosa Thatcher Co.
Cotton

induced

which

Accident Insurance

Standard
Co.

been

Spots

the

3.4

and soy beans

corn

6.6

ffl.30

Multiple line insurance
operating utility

3.4

i-1.20

...

Springfield Gas Light Co._4_ 106
Massachusetts

29%

'.. y

Springfield F. & M. Ins. Co. ' 92
■

14
goods

dress

...

Sprague Electric Co.—y

4.6

Carbon, graphite and electronic
products
•
•

Yarn

25%

Joseph Mayr & Company

nearly 7%, the

which

Members New York Stock

Exchange

hourly wages

in the period in question

—and if it had, one would

still

have to take into account the

carrving cost of the additional

BROAD

STREET, NEW YORK 4, N. Y.

Telephone BOwling Green 9-2956

The Commercial and Financial Chronicle,.

(1890)

Neither

Long-Range Federal Budget Projections
Federal, state and local budget projections,
depth,

based

studies

are

expenditures over the next
decade, designed to provide per¬
spective for making budgetary
decisions, are set forth in a paper
by Dr. Otto Eckstein, Assistant
Professor

Economics

and

the

Prices

1958

Base

made

are

ditures

in De¬

1958, prices.
years the Research
Policy Committee of CED has
urged that the Federal budget
should contain estimates of ex¬

current fiscal year.

Con¬

economic

foreign

poses,

assist¬

other vital programs,
the need for having such informa¬
tion is imperative.
and

ance,

adopt a strong economyminded attitude, Federal adminis¬
trative budget expenditures (now
estimated at about $81 billion in
the current fiscal year) could be
held to $87 billion in 1968, pro¬
ducing a surplus of $17 billion

time,

at current tax rates.

essential

If budgetary restraints on civil¬
ian programs are greatly relaxed

mitted ourselves

gress

Such

present
porary

questions as whether the
budget problem is tem¬
or likely to last a long

whether

are

programs

starving

have

five

bottom

the

detail

made

for

based his

the

up.

par¬

and

whether

taxes

each

and

program

the

sion

would

raised

have

that

com¬

rate of ex¬

tially;

should

and

remain

that tax rates
present levels.

The study was

Editorial

Board

analysis

which

would

however,

Assuming,
tinuance
balance

the

con¬
overall

recent

attitudes":-'and

forces

with
respect
to spending, ex¬
penditures in 1968 would be $97.1
billion, with a surplus of $7.5
billion.

expenditures

estimated by Dr. Eckstein to

are

rise from $40
to

local

and

State

$54

approved by an.
presenting an
is a significant

important problem of pub¬
policy, but its findings are not
necessarily endorsed by the CED.
of

by
rate

35%.
of

in fiscal

This

growth than all but

Committee

for

''Dr. Eckstein

J. J. Little & Ives Co.,

Meresman

make, and has not made,
ommendation

the

highest projection for the Federal

future

course

the

for

Federal

rec¬

expenditures.

1958

Stern & Stern

Paynrts. tc
Dec.i

31,
"

1958

31,

1958

0.70

0.20

3.6

1.30

16%

7.8

10.39

25%

1.5

1.25

4.3

26;

1.25

6.3

1.00

20%

5.0

1.60

24%

6.6

Textiles, Inc

7.8

0.64

33%

1.9

0.9

17%

5.6

8Uk, rayon and nylon fabrics

Stonecutter Mills Corp.,
Dies

and

CI. B

fabrics

Stonega Coke & Coal Co
Coal

and lumber

Stouffer Corp.
Restaurant

....

chain

Strathmore Paper Co
Manufactures
pers,

fine
printing pa¬
artists' papers and technical
'

■

•

papers

Stratton &

Terstegge Co

Wholesale hardware

Strawbridge & Clothier
itore

Struthers Wells Corp
Fabricated metal products; chem¬
ical and refinery equipment

Stuart
■

(The) Co

Pharmaceutical manufacturer and
distributor

11'

Stuyvesant Insurance Co

g0.25

Auto and marine Insurance

Suburban Propane Gas Corp.
Distribution
leum

1.00

5.35

1.60

liquefied petro¬
sale of appliances

and

gas

Sun Life Assurance
Also large annuity

1.6

337

business

Super Valu Stores, Inc

5.6

28%

food distributor

Wholesale

Over-The-Counter Consecutive Cash Dividend

Payers From 5 to 10 Years Appear in the
'

Co.;

firm

Allan,

Arthur

Shein-

in the New York
of
Weisman,
Celler.

Spett

'■
v.

Inc., pub¬

partner

berg,

not asked

was

tion
Dec.

31,

Second Table Starting on Page 47.

President.

the

Dec.

Elects Five to Board

law
•

1968, or
higher

for

12 Mos. to

Divs. Paid

lic

and

Research

secutive

Quota¬ -Based

contribution to the understanding

estimates, the Re¬
The new directors are: John F.
Policy
Committee
commissioned , Dr.
Eckstein
to Meek, Vice-President and Treas¬
prepare a set of budget projec¬ urer of Dartmouth College; Eu¬
tions through fiscal year 1968 for gene V. Rostow, De&n of the Yale
all levels of government.
University School of Law; Harry
partner in the New
In an introduction to the paper Meresman,
York accounting firm of Abrams,
Dr.
Herbert
Stein, Director of
budget

Economic Development said:

billion in fiscal 1960

billion

term

Extras for

Years Cash

Life,

held at present

Approx.
% Yield

Including

high

lowered,

been

Cash Divs.
No. Con¬

Large Philadelphia department

degree of world ten¬
remain as it now is;

rates, or lishers of general reference books,
cannot be answered on has elected five new members to
the basis of the budget figures for its board of directors, increasing
membership to nine, it was an¬
one year jalone.
nounced
by Harold Drimmer,
In the absence of official long-

in various publications to
made by the Gaither
Committee,
expenditures
could
reach $115 billion in 1968, with
a deficit of more than $10 billion.

ported

PROGRESSIVE ARD PARORAMHS

projec¬

legislative

present

major assumptions:

That

penditure growth that will cause
persistent budgetary difficulties,

if military expenditures fol¬
low the pattern unofficially re¬

and

page

were

employment would be
restored by the end of fiscal 1960
penditures and revenues for a and that the economy would con¬
period
of at least five
years tinue to grow at a rate of 3%
ahead. These, it has stated, would
annually; that the present divi¬
greatly facilitate the making of sion of functions between Federal
budgetary decisions. With urgent and state and local governments
requirements for military pur¬ would not be altered substan¬

that, depending upon the spend¬
ing policies that are followed by
the
government,
the
Federal
budget in 1968 will be from $6 to
$34 billion larger than for the

from

THE OVER-THE-COUNTER MARKET

agencies and programs.

status

many

and

budget issued by the Research
and Policy Committee of CED.
Dr. Eckstein's projections show

pro¬

estimates

from

Eckstein

tions

cember,
For

not

ticular

All estimates

policy

If the Administration and

1964,
level

asked

apply some observed
or
projected relations of overall
expenditures to national income,
population
or
other aggregate.
Rather, the totals were obtained
by summing estimates of expen¬
did

Dr.

Federal

1960

fiscal
about that

billion

remain

Used

velopment (CED). The study was

to accompany

governments

through 1968.

University, made public in
Washington, D. C., April 6, by
the Committee for Economic De¬
prepared

$3.5

most

vard

statement

constructed

would
probably increase from about $1.5
in the current fiscal year to al¬

Har¬

local

was

Eckstein's

Dr.

Government. At present tax rates,
the combined deficits of the states

local

Continued

ject what expenditures would be
on
assumptions which he would
specify as clearly as possible so
that users could judge for them¬
selves their probability or desir¬
ability. This is what he has done."

Estimates of Federal, state and

expenditures will

Estimates Made From Bottom Up

cash budget of about $18 billion more
leaving a deficit of $6.6 billion.

expected to result in

Rather he

be.

provided by Dr. Otto Eckstein of Harvard for the
Committee of Economic Development.
The medium Federal
cash budget expenditures for fiscal year 1968 are expected
to be $117.8 billion with a surplus of $11.3 billion. A Gaither
Committee and other high level policy of expenditures are
in

he asked to make

was

forecast of what

.Thursday, April 23, 1959

Sheinberg;

and

Eugene H. Catron, partner in the
New York Stock Exchange mem¬
ber firm of Shields & Company.

hose

Manufactures

(rubber

0.675

4.0

and

plastic) - small tires

2.00

20%

9.8

2.10

2.5

*24

2.50

49%

5.1

1.25

5.4

0.80

8.0

1.20

35%

3.4

2.50

3.2

hl.45

170

0.9

0.78

14%

5.5

0.50

15%

3.2

0.60

6.0

Terry Steam Turbine Co.___ *51

f2.30

5.3

Texas Natl. Bank (Houston). *35

2.50

3.7

0.60

12%

4.8

*13

fO.59

5.4

11.79

395

3.0

1.00

36%

2.8

2.00

42%

4.7

Syracuse Transit Corp
Local bus

operator

Tampax, Inc.
Miscellaneous

cotton

products

Tappan (The) Co
Gas

ranges

Taylor-Colquitt Co.
Railroad ties

and

poles

Taylor & Fenn Co

i..——

alloy castings

Grey iron

Taylor Instrument Cos
Mfr.

Instruments

scientific

Tecumseh Products Co
Refrigeration

small

compressors,

engines, etc.

Telephone Service Co. of
Ohio,

Class

Holding

co.

Television-Electronics

Fund,

Inc
Investment

mutual

Open-end

With L. C. Berendsen

Swan Rubber Co

co.

Tenn., Ala. & Georgia Ry. Co.
Railroad

common

carrier

(Special to The Financial Chronicle)

MONMOUTH, 111. —William R.
Brooks is
sen

now

with L. C. Berend¬

Company, 930 East Second St.

With J. L. Eisner
(Special to The Financial Chronicle)

LAWRENCEVILLE, Ilk-

SPECIALISTS

Jimmy E. Irwin is now with John

SINCE

Eisner, Gee Building.

Manufacturing Corp.
Iron castings

Turbines

OVER-THE-COUNTER

Malleable

Haute

Terre

reduction

and

gears

Textiles, Inc.
Makes cotton

yarn

Thalhimer Brothers, Inc
Richmond

department store

Third Natl. Bank in Nashville

1926

Third National Bank & Trust
Co.

(Dayton, Ohio)

Third National Bank & Trust
Co. of Springfield

SWIFT, HENKE & CO.
MEMBERS

MIDWEST

STOCK

Reports available

(Mass.)

possible longer record,
t Adjusted for stock dividends, splits, etc.
g Pius
17/80 of a share of Stuyvesant Life Insurance
*

EXCHANGE

Details

not

each

Cook Electric Co.

h Flus

complete

4CU

Co.

for

held,

payable in class "A" stock.

Insurance Corp. of
America

BROKERS and DEALERS
With Own Private Wires to

Gulf Coast Leaseholds

Straus, Blosser & McDowell

Foundation Corp.

MEMBERS

Los Angeles, Cal.

Madison, Wis.

St. Paul, Minn.

Listed & Unlisted Securities

Underwriters—Brokers

Norris Thermador.

DETROIT

NEW

STOCK

Milwaukee, Wis.

YORK

STOCK

EXCHANGE •

SOUTH

EXCHANGE

Members of Midwest Stock
209 S. LA SALLE ST.

Tel. DEarbom 2-5600

Exchange

LEASON 6- CO.
Incorporated

CHICAGO

CHICAGO 4

Teletype CG 146-147

2-6000

EX CHAM OK

STREET

MILWAUKEE

ANdover 8-5700

KANSAS CITY

GRAND

TELETYPE

MT.

RAPIDS

CLEMENS

630

3
PRIVATE WIRE SYSTEM COAST TO

STate

STOCK

3, ILLINOIS

TELEPHONE

NEW YORK

DETROIT

39 South La Salle Street

MIDWEST

LA SALLE

CHICAGO

William A. Full er & Co.

•

AMERICAN STOCK EXCHANGE (ASSOCIATE

CG 364-365

Retail

COAST

Trading

VClume 189

Number 5840

...

The Commercial and Financial Chronicle

Continued

THE OVER-THE-COUNTER MARKET
Cash Divs.

Extras for

secutive

12 Mos. to

Years Cash

1958

Dec.

Based

Paymts. to

31,

picket," which is a license to make
it impossible for the employer to

1958

f 0.40

Fiber glass, fabricators HI Temp
Insulation,
fiberglass reinforced
plastic parts

continue

1.2

such right.
The courts said that
the right to picket was a part of

333/4

1.25

300 Adams Building, Inc._

3.00

ass"

6.5

1.05

45y2

and

Financial

2.3

I have set down the

California drug store chain

Chronicle

simple truths

great

3.25

again be explained and illustrated
Such forced wage increases

steel and autos and construction.

reduce

markets, production, and
employment. They raise the cost

Forced

population, especially rfhP great
the
majority of workers. They create

S?i,ral- and hampers the national
uauses ^ ^ng cost
of living

5.3

which

ernment,
especially in
defense
production,
and forces
deficits
which endanger the solvency of
the government.

plant shuts down. The competing
enterprises go after the struck

1.00

*13

1.80

IOI/2

9.5

Inc.

291/2

6.1

"Speed Nuts"

Title Insurance Co. of Min¬
a51

2.40

Title Insurance

Title Insurance & Trust

Co.

(Los Angeles)

1.50

353/4

4.2

0.90

163/g

5.5

Insuring title to real estate

Tobin Packing Co.—
Meat packer,

Corp.

Toledo Trust Co.
Toro Manufacturing Corp.

1.40

243/2

Unearned

3.00

131

1.20

193/4

6.2

1.00

183/4

5.3

102

2.9

stationary power tools

Torrington Mfg. Co.
Manufactures

machinery,

blower

wheels and fan blades

Towle Mfg. Co

2.00

6.7

1.40

5.2

1.10

943/4

1.2

Sterling silver tableware

Towmotor Corp.
Fork-lift truck

Travelers Ins. Co. (Hartford)

cession.

1958

with

First

Bank

Trenton

National
♦

Trim Products Corp..

■

2.75

543/4

5.0

1.00

2.6

Manufacturers of automotive

equipment

Trinity Universal Insurance
Company

....

Dlversmed insurance

Troxel Manufacturing Co.

9.6

0*60

Bicycle saddles

Trust Co. of Georgia

12.35

80%

1.43

2.6

0.60

3.0

4.00

4.2

Diversified insurance

Twin Disc Clutch Co.

has

been

money

industries

the

are

such

wage increases in these
industries create the wage-price
H

defense effort.

The union attacks

°?e *°l ihT

The

company's business. The management surrenders.
costs

are

passed

The added labor

attacked.

enterprise is
years is a

long story of ignominious surrender by the great enterprises.
,

th-? PPoriomiV

Clutches and gears

The union stranglehold on
dustry in America is recent,
cept in the building, mining,
printing trades. Because of

/inn*

annrphv^

resources

of this coun¬

write^

are eating on the founda¬
The slums grow ever larger,
while the government pours bil¬

^affip fnrmol/for

settleTnent Tfu ™unk£
en

toe

nrnblpmq

R«t

thJrWdv

fin„

vi0iGncG

1.00

2.6

Tyer Rubber Co.

0.40

3.6

lions

GXtortion

If'

mir
on*

goods

0.75

11%

6.4

Tyler Refrigeration Corp....

2.60

613/4

4.2

fl.57

2.4

2.00

453/4

4.4

Commercial refrigerators

Uarco, Inc.
Business stationery

Union Bank (Los Angeles)...
.

Formerly Union Bank & Trust
Co. Name changed Jan. 1958.

Union Commerce Bank

(Cleveland)

...

Details not complete as to possible longer
t Adjusted for stock dividends, splits, etc.

record,

Continued

will face

Russia.

Including predecessors.
on

page

the

ratholes

sub¬

war

Taft-Hartley law is inade¬
quate, weak in penalties, Vague
in language.
But it does have
some
excellent provisions.
Mr.

vetoed,

unsuccessfully.

Continued

only enemies of labor in America

and

INCORPORATED

experienced, skilled trading organization,

With complete leased-wire interconnections and
With dealer contacts in all important

Fast, efficient service
and

markets.

buy and sell orders

block distributions.

We invite your

inquiries.

A. G. Becker & Go.
INCORPORATED
NEW YORK

STOCK

EXCHANGE

and

60 Broadway

strike which stops pro¬

Chicago 3

New York 4

And

Other

to the labor bosses?

What Labor Bosses Want and Do
Russ

Building

San Francisco 4

Cities

O.
MEMBERS

New York Stock

Exchange

Midwest Stock Exchange
American Stock

Exchange (Associate)

CHICAGO

122 South

LaSalle Street

NEW YORK

44 Wall

Street

BOSTON

other

principal stock exchanges

129 So. La Salle St.

(Under these somber condi¬

All history is a record of nations
destroying themselvesJ Lycurgus,
600 years before Christ, ruined
Sparta by a series of economic
measures.
Diocletian, about 1600
years ago, finished off the Roman
Empire
by
somewhat
similar
measures.
Oddly enough, Roose¬
velt, an absolute dictator in the
first years of his administration,
set the groundwork for our pres¬
ent situation by much the same
measures.
Our
country
is,
of
course, too new and too rich to go
the way of Rome and England.
The question is whether our road
to
ruin
is
political.
Will the
American people turn the nation
over

Member

Investment Bankers Since 1912

to the death with

duction, any forced shortening of
hours of work, any unearned wage
increase, is a direct aid to Russia.

We do not know whether

tions any

Their intentions

intend

are

clear. They

to permit no law which
prevents them from obtaining un¬
earned wages by force, no law
which restricts mass picketing and
secondary boycotts. They intend
to force- every worker to join a

and

The

have the weapons to win that

war.

na-

S money ,teo un

remedled-

bedding rules enlarging deficits.
Unemployment is chronic in coal
mining, while the union continues
to extort wage increases. We are
losing our export markets in steel,
autos, machinery, and many other
products. We do not know when
we

down

cnivprf

Ireat.
fnwhirh

blackmail

sidized housing. The railroads are
in sore straits, with union feather-

rubber

Manufacturers ^}f

Vine

nation

!L D ®

tion.

220 Bagley Corp.Theatre and office building

Thin

pHqIc?

pp„nnmip

haR

creases

not

patrioti(fmen consider

i" w"* Thl Truman

in¬

c+rm

T will

ageous and

themselves "friends of labor." The

ex¬

and
the

than the

disL^ the coun^
bpini
hv
Coneress
Wha? would Conaress of lour-

to the helpless

The last 10

cbmii^

what

re¬

try the unions have not yet seri¬
ously damaged the structure of
American: industry. But already
the termites of forced wage in¬

and gas utility

Twin City Fire Insurance Co.

There

enormous

2.9

Tucson Gas Elec. Lt. & Pwr._

basic

industries

markably vigorous recovery, but
unemployment still remains very
large. The reason is simple. Even
in the acute stages of the recession
wages in the basic industries con¬
tinued to rise, impeding re-employment.

Trenton Banking Co.
National

by a development of the 1957 re¬

Life, accident, health

Aug.

critical

ment. Then the next

increases
so
disrupt the balance of production
and consumption (that_ they encourage depressions.
They were
a major cause of the recession of
1937 and probably the chief cause
of
the
recession
of
1957, now
widely known as the "Reuther
Recession."
The general public
has been surprised and dismayed
wage

workers lost

The

public and the helpless govern-

Unearned Wage Increases

5.7

Power lawn mowers and

form
First
Bank.

the costs of gov-

„

Gasoline pumps

Mechanics

increases

in1T~Pittsburgh

ganization, and money into con- glass workers will get in increased
tests.
• wages in 10 years.

here.

suits, coats, etc.

Tinnerman Products,

Electric

or-

4.9

workers

who will not serve them, operations to stop. Chrysler union.

pouring propaganda, personal

elass

comprny stX cau^d ChryX

candi-

1.3

Timely Clothes, Inc..

ever£

"Life," "Time,"
"Fortune" & "Sports Illustrated"

date

Politically they intend

defeat for office

10.32

finance—personal loans

Publishers

Merged

30-hour week

with the old 40-hour pay. They
intend to inflict on any enterprise
which resists them such fatal in¬

Time, Inc.

dustry by forcing

Consumer

Tokheim

will resist.

They intend, when in an
industry forced wage increases
cut down employment, to create
artificial employment in that in-

about the results of forced wage
increases.
These truths will not.

Time Finance Co. (Ky.)

nesota

jury that in future no enterprise

Ruin

union.

previous articles in the Com-

mercial

Chicago office building

Men's

Charles Dickens that "the law is

7.8

welding machines

Thrifty Drug Stores-

There

the right of free speech. This calls
to mind the famous dictum of

Thomson Electric Welder Co.
Electric

business.

6.0

Wide range of cotton products

Thompson (H. I.) Fiber Glass

Road^lo

lished also the so-called "right to

Dec. 31>

1958

1.25

are

this destruction the courts estab-

*18

the few powerful unions. They
exploiters of the great un¬
organized majority of workers.
Union
regularly
exploit
other
unions. The New York City news¬
paper deliverers timed a strike
to ruin Christmas trade, throwing
thousands of newspaper workers
and temporary sales personnel out
of Christmas money.
A handful
of airline pilots struck for salaries
up to $30,000, throwing out of jobs
thousands of airline employees
getting wages one-sixth to onefourth the pilots' wages. A group

% Yield

Quotation

Dec. 31.

Divs. Paid

page

The

Approx.

Including
No. Con-

from

are

PR06RESSIVE AND PANORAMIC

(1891)

30 Federal

Street

page

Continued

system of industry-wide bargain¬

from page 43

ing. Officers of the unions meet
annually with officers of the em¬
ployers.
This in each major in¬
dustry.
It works fairly well. The
wages
agreed upon have about
increases.
Three-quarters of all kept equal to the average increase
workers cannot strike.
Millions in the rate of national production.
of government workers are pro¬ It works for two reasons. Any un-;
hibited from striking by law. Un¬ fair rate extorted by one group
der
present conditions the so- will be bitterly resented by other

The Road to Ruin
abuses.

to
curb
labor
But the law has not been

rigidly

enforced.

this

effort

one

from

1947

been

open

For

there

1959,

years,
have

violations of the law.

right to strike is a special
legal license granted to a small

And the government will;
set
wages
by law if improper)
wages are set.
The unions cannot.

Only two examples of this frus¬
tration of the law will be cited

called

here. The law flatly prohibits the

workers.
Ibis
privileged group already have the shoot down one company at a:
highest wages on earth, the larg¬ time, like ducks in a shooting gal-;
est
pensions, and the
shortest lery, as in America.
hours.
To permit this minority
(5) Make the union shop illegal
to prey on the nation is morally
by Federal law. The union shop'

closed

all

shop.

these

years

shops,

closed

been

have

there

especially in the newspaper field.
It is a peculiarly vicious institu¬
tion.
It

the

not

was

Labor Depart¬

Working
men
victims
brought
suit. Finally the Supreme Court

One Justice dis¬

damages.

sented, Chief Justice Warren, on
the grounds that giving damages
would cost the unions a lot of

The law also outlaws
union to force the em¬
ployer to stop doing business with
a
non-union company.
Victims
have had to go to court for relief.
Enforcement of the Taft-Hartley
law and enforcement of the state
money.

strikes by a

laws

violence, by local au¬
thority, would alone bring a great
improvement.
enforcement

such

the

solve

There

will

problems.

major
set

would
here

down

possible measures. It
that the proposals
greatly in nature. Some are

number

will be noted
vary

radical basic reforms.
minor

ing

all

wrong.

any
strike
for
than 40-per week

(2) Prohibit
shorter

hours

if it involves

higher rate of pay

measures

the

abuse

Others

aimed

are

reduc¬

American

workers:

hour.

the

major

the

higher

wages.

necessary

any

strike

Strikes

are

tutional.

which

the

intention

•

concession

of the American economy.

(3) Adopt compulsory arbitra¬
tion.

This

would

desperate

last resort to stop the
bosses.
Compulsory arbi¬

measure,

union

tration

in the

leads

ernment

end

price setting.

gov¬

But com¬

arbitration
would
be
pulsory
preferable to the present situa¬
tion.
Business leaders violently

could

not

justice.

passed

The law
without it.

Nineteen states have outlawed the
union

shop.

badly defeated
triumph
last November, Meany announced
that he was asking Congress to
repeal the laws of the 19 states.
in five

secutive

12 Mos. to
Dec. 31,

(6) Require
members

secret ballot of all

union

{?,

before

the

bear

(4) Adopt the Swedish system.
Sweden and

some

worked

out

other countries
a

compromise

want

loss

strike.

wages, do
One of the

top

labor leaders has announced that
secret

ballot

does

suit

not

California

1.25

51 %r

redwood

0.60

3.00

5.2

1.50-

10.0

picketing
should

must

permitted,

Co.
distribution

Power

Natl.

poles

Pitts-

Bank

*347
Union Natl. Bank of Youngs-

Crude

oil

2.80

Gas

Corp.

restricted

two

such
to

the

Kohler

Reuther

agents

sent

1-0

1.80

4.0

2.00

48%

4.1

1.375

28%

4.1

19
W*.

0.80

51%

1-6

4.00

0.65

gas

2.10

••

:
.v

Memphis
—1 29
Union Tnist Co. of Maryland * 20

Illuminating Co

United

.59

utility

Connecticut operating

United Insurance Co.

America
Life, accident & health

•

United Life & Accident'
Insurance Co
Life, accident & health

Greeting cards

3.8

7.8

1.00

28%

3.8

2.00

82%

2.4

*49

1.00

31%

3.2

*51

0.35

9.7

....

Cold

States

Corp.

Storage

Ice, etc.

U. S. Envelope Co

Manufacturer of envelopes,

U. S. Fidelity &
Diversified

Diversified

Guaranty Co.

insurance

U. S. Fire Insurance
U.

paper

and other paper products

cups

evil.

insurance

Lumber

Holding company, land and min¬
eral Interests

National Bank

States

Merged.

Require complete reports of
finances, made to the gov¬
and to union members.

to serve

your

Connecticut needs

and those of your customers

who

2.60

79%

3.3

0.40

2.2

1.25

5.0

Phosphors,

be locating in this area.

for

cluding

all

union

political
purposes,"

United States Testing Co

ruin

"for

1, 2, 3, and 4

of American

duce

888 Main

Street, Bridgeport

Telephone FOrest 6-4741

union

Federal Reserve System

2.5

0.20

1.15

(Del.)—27

U. S. Truck Lines

19%

5 8

Inter-city motor carrier

31%

3.9

106

3.20

United Steel & Wire Co._.—
Wire and metal specialties
-

0.20

United

1.25

31%

4.0

fl.45

40%

3.6

0.25

3.1

1.60

31%

5.1

—18

0.80

12%

6.3

U. S. Trust Co. of N. Y.

Utilities, Inc

4.0

Holding company

Universal Match Co

Univis Lens Co
Manufacturer

and

distributor

multifocal
and eye

opthalmic lens
glass frames

blanks.

Upper Peninsula Power
Upson

public

utility

(The) Co

Exterior

and

fibre

Interior

wall-

board
*

Details

not

as to possible longer
dividends, splits, etc.

complete

t Adjusted for stock

record,

in¬
edu¬

If it's Connecticut

political

We invite you to use our

are

coming

are

for both listed

and unlisted security mar¬

kets—and also

basic

our

statistical information.

merely

intended

the

and

abuse

the

where

uncontrolled.

months

have

tions.

complete facilities

re¬

unpro¬

injury to helpless business¬
now

will

violence,

workers,

voked

public

opportunity

they stand

the

CHAS. W. SCR ANTON &.

officials

these

ques¬

political official who

immediate

action

209

CHURCH

NEW HAVEN 7, CONN.

STREET

Branch

Offices in

op¬

Bridgeport

some

Danbury

•

New London

sort

all these issues should not

hold public office.

Co.

Members Neto York Stock Exchange

show

It is the view of this writer

that any
poses

Member; Federal Deposit Insurance Corp. •

24
and

•

industry, while

measures

the

men

Main Office:

inspection

Testing, research,
engineering
-

reforms, designed to prevent the

minor

National Bank

v'.V-

expendi¬

expenses

engaged

measures

Connecticut

Investment Co.

Real estate

The reader will have noted that

The

*"■-

U. S. Realty &

work, and contributions.

measures

inquiry invited

radiation

Industrial

dials, panels and name-

Nources,

plates

complete

purposes,

expenditures

personnel

Your

—

personnel

own

There should be

publicity

cational

19 Convenient Offices

Corp

connection with labor matters.

(10)
tures

may

Bank.

U. S. Natl. Bank (Portland).

Employers should be required to
report all payments made to per¬
their

United

Denver

U. S. Radium

ernment

outside

•

See

National

States

Electric

sons

1.1

17%

United Printers & Publ., Inc.
United

375

Matches and candy

Stop
secondary
boycotts.
Taft-Hartley provisions are
wholly
inadequate.
Secondary
boycotts have become a national
(9)

3.6

natural

and

production

Wisconsin.

(8)

union

:7?

Bank of

The

always ready

of-

Union Planters National

men

0^80

—

Oil and

54.,

town, Ohio
Union

carrying signs outside of plant en¬
trances, the two to be actual plant
employees on strike. There should
be jail sentences
for outsiders,

4.0

Manufacturing

Metal

of Denver

organized mob action, stopping
operation of a plant and beating
up non-strikers.
Local officials
no
longer control picketing.
If

2.4

•

Chucks, hoists, and castings;

United

In America it has become

4.3

1.43

Union Manufacturing Co
Union

(7)

ness.

1958

Inc.;__^—

Union Lumber Co.__

Restrict picketing. The old
legal
ruling that
picketing
is
merely exercising the right of
free speech is legalistic nonsense.
Picketing is a deadly weapon, de¬
signed to help a union win a strike
by ruining the employer's busi¬

Dec. 31,

Natural gas utility

the

union bosses.

31,

Union Gas System,

not

Paymts. to

tion
Dec.

1958

Divs. Paid

Based

Quota-

Extras for

Years Cash

Car-Icing,

compulsory arbitration, on strike can be called. Thousands of
the simple grounds that they do strikes
are
ordered
by
union
not trust the government to be bosses when the members, who.

% Yield

Including
No. Con-

was

states. After this

Approx.

Cash Divs.
'*

oppose

obtain earned wage have

PROGRESSIVE AND PANORAMIC

hierarchy {

labor

production of 25% any union to beat any employer'
consequent ) increase of into acceptance of the union shop.
labor costs of 30%.
Enforced in But it also authorizes any state to •
all our major industries, this evil outlaw the union shop.
This last
scheme would cut the heart out provision was not included as a

for

not

It is clearly unconsti¬
is the chief means ^

rights.

man

reduction of

with

TNE OVER-THE-COUNTER MARKET

Union

.Thursday, April 23,

page

unions to

fair.

(1) Prohibit

indefensible violation of hu¬

of maintain their iron hold on union
force a 30 members, the chief means by
hour week with pay for the 30 which union members are forced
hours equal to the current pay to contribute to political funds.
for 40 hours.
This would mean The Taft
Hartley laws licenses1
is

per

from

groups.

But
not

minority

light.

ment which brought this to

gave

Chronicle

The Commercial and Financial

(1892)

New York Phone: REctor 2-9377

Waterbury

TeletypeH 194

1959

Volume 189

Number 5840

The Commercial and Financial Chronicle

...

(1893)

PROGRESSIVE AND PANORAMIC
Cash Divs.

Extras for

Quota-

secutive

12 Mos. to
Dec.

Divs. Paid

Upson-Walton

(The) Co.____

Manufacture® wire rope,
Mocks,

crane- hook

31,

1958

Based on

1958

0.40

1958

tackle

blocks

Utah

Home
and

Fire

1944.

Insurance
1.00

23%

0.70

14%

3.00

6.4

Mr.

Wholesalers,
and

1.00

0.90

19%

0.80

293/4

1.20

23%

5.1

2.50

5.4

^_L__

Makes counting

2.50

Viking Pump Co

20.00

3.2

625

1.40

5.2

coal

land

*43

6.00

6.3

Life

Insur¬
16

Ingot * molds'

0.60

0.50

1.1

Wisconsin

Walnut Apartments

!____

0.40

1.8

2.9

f 1.38

Corp

Philadelphia
and

2.00

and-springs

0.06

47%

3.4

unit

network

brings the Dean
of

offices

1.40

ATHENS,

3.1

45%

son

1.00

3.7

27;

of Micro

Ga.—Robert H. Car¬

with Tillman-Whitaker

now

EXCHANGES

THROUGHOUT

WISCONSIN

Rold

7.1

0.70

2.7

0.60

5.5

f0.80
;

128 - College

Inc.,

now

flat

0.70

fO.90

Installation

3.6

With Harry Peters
(Special to The Financial

lighting systems
not

GRAND

complete as to possible longer
dividends, splits, etc.

record,

paid on

April 7,

with

1958.

Continued

page

12 Months Ended

Feb. 28

Gas

1958

1959

Operating Revenues:

$22,265,242

$24,739,597t

16,329,270

17,521,212

941,347

935313

$43,202,156

Total

$39,529,725

3635M21

33,738,529

$ 6351,135

Operating Expenses and Taxes

134,517

$ 5,791,196
119,049

$ 6,485,652

9 5,910,245

1,878,377

1,593,549

Net

$ 4307375

$ 4316,696

1,951312

1,910377

$ 2,656,063

$ 2,406,119

255,571

244,809

$ 2,400,492

$ 2,161310

$1.70

$1.59

$1.65

$1.58

Net Operating

Income

Other Income

;
.........;. r.... .*..

|ncome before Minority Interest...

Minority Interest
Net Income

...

for Central Electric

& Gas

Company
Stock Dividends....

Preferred
Balance

for Common

Electric & Gas

Stock of Central

Company

Common Share on —
Average number of shares outstanding
Number of shares outstanding at end

Chronicle)

per

period

....

JUNCTION, Colo.—W.

Carey Cook has

t Adjusted for stock

stock dividend

Company.

2.3

and

SUMMARY OF CONSOLIDATED EARNINGS

Earnings

chain

Welsbach Corp

Erwin

231 South La Salle
Erwin was previously

with the Milwaukee

Weingarten. (J.), Inc

Chronicle)

connected with Hemphill,

Street. Mrs.

com¬

—

Hemphill, Noyes

Noyes & Co.,

Manufacturer of paints, varnishes,

distributor

Joins

CHICAGO, 111.—Ruth T.
is

and

and Subsidiaries

Net Earnings

(Special to The Financial

11!

stainless

industrial coatings, chemical

CENTRAL ELECTRIC ft GAS COMPANY

V...
Interest and Other Income Deductions.:

Company,

steel and strip

EXCHANGE

Chronicle)

1.2

2.00

•

Watson-Standard Co.

PRINCIPAL

REPRESENTATIVES

Avenue.

Crude oil and gaH producer

Plus

OTHER

STOCK

Electric
(Special to The Financial

■

Washington Steel Corp._____

■'Details

AND

YORK

MILWAUKEE

41,

With Tillman-Whitaker

otreet

OFFICES

NEW

SECURITIES
ST.,

Telephone

Washington Oil Co

Maintenance

MEMBERS

Wall Street.

4.4

1.60

(Evanston, IIL)__

Supermarket

MASON

EAST

225

Street.

accident and health

pounds,
glass

INCORPORATED

INVESTMENT

(S. D.) Co._

Producer

L©Hiwa

Exchange

located in 15 States,
including Hawaii.

Washington National Insur¬

Stock

leading

new

total

storag®

Prlpting papor® & allied-product®
Washburn Wire Co.-*:Z

Co.

York

located

Witter

4.4

outdoor

Bros.

ance

OVER-THE-COUNTER ISSUES

Opens New

Co.___,
Paving contractors
/?/'

Life,

Cattlemen's

President of the
Company

Glass Building, 11
The office is
the co-management of Rob¬

The

Warehouse & Terminals Corp.

Wire

for

complete investment banking,
and advisory services
individual, corporate and insti¬
tutional
investors.
The firm's
downtown New York City office

Owning and- operating apartment

Warren

Bank

Auto parts

Warehouses

Reserve

brokerage

"and

(Winston-Salem)
Walker
Manufacturing Co. of

Warren

Wisconsin Market Place

Stock

der

5.3

accessories

York

was

Gov¬

Sully and Samuel G. Brown
and staffed and equipped to ren¬

Wachovia Bank & Trust

house

ert F.

State

iron

he
of

Witter & Co., members of

55th

under

Non-participating only
Vulcan Mold & Iron Co
Cast

:y,", f

W* .>-,t

of the Corning

Virginia

Co.

ance

' ^

past President of the

other

East

Kentucky

Volunteer

•'

security and
commodity exchanges, has opened
a
new
uptown New York City
branch office on the main floor

Virginia Coal & Iron Co

1941

Board

National

New

and

4.9

City real estate

Rotary pumps

and

Dean

devices

Victoria Bondholders Corp.__

soft

Uptown N. Y. C. Office
the

Veedor-Root, Inc

and

122 South La Salle Street.

former Chairman

Dean Witter
❖

heating systems

Owns

joined the staff A. C. Allyn & Co.,

Associates,

2.6

chemicals

Lingerie

York

Walls

of Amarillo.

apparatus

Vapor Heating Corp

New

with

now

Inc., Candler Bldg.

Baker & Taylor Drilling

4.6

Rogers, Inc

Industrial

scientific

Vanity Fair Mills

Car

at the
meeting
in

New

Federal

Association,

1.9

5iy2

food

Van Waters &

the

American
26

and
the

Taylor,

the

Dallas

Camp Sea Food Co., Inc.
sea

are

Larkin have

Exchange.

4.9

Valley National Bank of

Cans

1940

ernors

Ingot mould® and stools

Van

4.2

producer

Valley Mould & Iron Corp.__

Phoenix

were
Directors

Company

Paper

Chairman
26

casualty insurance

gas

Board

William J.

—

and John F.

Austin

Harding" has been senior
of Smith, Barney since

and

Utah Southern Oil
and

the

C HI C A G O, 111.

Thomas W.

—

partner

Company *
Fire

Scott

Mr.

ATLANTA, Ga.

Boling and Joseph E. English, Jr.

banking executive,

company's
annual
Chester, Pa.

4.4

and

elected to

Paymts. to
Dec. 31,
Dec. 31,

fittings..

rope

Oil

oil

tkm

Years Cash

bankers, and Jay
Taylor, prominent Texas cattle,

% Yield

Including
No. Con-

of Smith, Barney & Co., New

ner

York investment

Approx.

Allyn

(Special to The Financial Chronicle)

Charles B. Harding, senior part¬
—

Two With A. C.

Walls Adds Two

Named Directors

THE OVER-THE-COUNTER MARKET

Harry

become

connected
Rood

W. Peters, 610

Avenue.

CENTRAL ELECTRIC ft GAS COMPANY
SUMMARY OF CORPORATE EARNINGS
Operating Revenues:
Electric

$17,264,483

16,725356

15,645,100
$ 1,619,383

Net

Operating Income
Other Income (including dividends from
subsidiaries)

$ 1,737,203

Net Earnings
Interest and Other Income Deductions..

$ 2,648,465
567399

Net Income

$ 2,080,566

Stock Dividends

255,571

771,297
$ 2390,680
535,515
$ 1,855,165
244,809

Balance for Common Stock

$ 1,824,995

$ 1,610356

$139

$1.18

$135

$1.18

Earnings per Common Share on —
Average number of shares outstanding
Number of shares outstanding at end

JEWETT CITY, CONNECTICUT

Manufacturers of
ELECTRICAL WIRES, CABLES & CORD SETS
i.

Net Income

Net

Outstand¬

Income

Fiscal

1952

$374,813

278,957

1954

amended)'

1953

ing at

per

Year
,

(as

248,967

1955

322,548

1956

636,632

•

108,667

$3.45

2.57

108,667

'li

t
--

—

•

1957

1958

734,126
300,148

'
.

146,315
163,208
167,533
185,888
187,078

1.70

1.98
3.80

3.95

1.60

$18,462,559

Total

Operating Expenses and Taxes

THE PLASTIC WIRE & CABLE CORPORATION

$16329370

$17,521312
941347

Gas

Preferred

period

Number of Shares

911362

of Common Stock of

Central Electric & Gas Company oat-

standing at—
February 28, 1959.
February 28, 1958..
Note:

(J)

1,458,546

1,368,557

Includes $490,000 collected after May 9, 1958, by Southeastern
Telephone Company, a subsidiary, under Increased rates, sub¬
ject to refund if the Supreme Court of Florida after hearing
to be held April 30, 1959, should decide that such collections
were
not legally authorized.
If telephone operating revenues
were reduced
accordingly, then after giving effect to certain
correlative adjustments of depreciation charges and Income
and gross receipts taxes, the resulting figures for Balance for
Common Stock of Central Electric A Gas Company and Earn*

Common Share on number of
period would be, respectively,

ings

per

end

shares outstanding at
$2,330,402 and 01.60.

The Commercial arid Financial Chronicle... Thursday,

(1894)

industry, and the trucking
industry except on terms agreed
to by some union.
power

than

industry rose by more

prices.

the last 11
years except one, the hourly com¬
pensation of workers in private
industry rose by more than the

fact that wages have outrun pro¬

finished goods.

ductivity in the face of declining

(e) In every one of

wholesale price of

in produc¬

of Unions

Wages

■

oversimplifica¬
tion to attribute the tendency of
It would

evidence is the fact that the
of

wages
to
outrun
productivity
colely to the unions.
Even un¬
organized workers possess con¬
siderable bargaining power under
conditions of
high employment
through their ability to withhold
efficiency. But there is abundant

unions

that

evidence

have

been

only

was

email part of the. labor force,until
the Federal Government in 1933
and

J935 adopted the policy of

vigorously encouraging memberchip.
Today about half of the
blue

collar

workers in industry
members, and unions
arc
particularly strong in the
large companies in heavy indus¬
try that have the highest pro¬
ductivity and set the pattern for
Wage changes.
Today virtually
iio one works at production jobs
in the coal industry, the steel in¬
dustry, the automobile industry,
the rubber industry, the can in¬
dustry, the flat glass industry, the
railroad
industry,
the
men's
clothing industry, the women's
garment
industry, the airplane
Industry, the air transport indus¬
try, and in many parts of the con¬
struction industry, the paper in¬
dustry, the
electric
light
and
fire

union

3 The

changes in the year-to-year

nomic

Before

Committee,

the

Joint

of Inflation

What about the future of infla¬

tion?

The influences

affecting the
price level change from time to
time. I am pessimistic about the
possibility of halting creeping in¬
flation largely because I am op¬
timistic concerning the prospects

com-

roin

Hearings

in the recession was
durable goods manu¬

The Future

fiensation of 86th Congress, First Ses¬
employees are computed
data in
sion,

rise

Eco¬

782.1

Change in

Change

Changcs in

Average Hourly

Real Product

Wholesale

Compensation

of Private

Consumer

Nonfarm

Prices of

Industry Per

Price

Wholesale

Finished

Manhour

Index

Prices

Goods

of Workers in

Private Industry

1.947-

19481949-

1950-

8.5%

3.6%

1—

2.7

2.9

—0.9

—2.0

—2.8

1—

5.7

7.1

0.9

3.7

1.8

7.6%

8.5%

7.9%

9.3

2.5

1951-

L—

5.8

2.2

1952-

L—

5.9

4.1

1953-

L._

3.5

1.8

1954-

>—

2.9

4.4

—0.3

2.2

0.2

1955-

!—

6.0

0.6

1.5

4.4

2.8

6.0

2.7

3.4

2.8

3.6

3.0

1.0

2.7

0.3

2.3

19561957-

L—

8.0

10.4

9.5

—2.3

—0.5

0?8

0.7

—1.0

0.3

0.4

0.3

2,3

(

The expansion of techno¬
logical research. Technological
(1)

research

knows, has

everyone

growing rapidly for over 50
Measured in terms of the
number
of scientists
and engi¬
been

years.

devoting full time to re¬
search, this activity is more than
five times as large as it was in
1930; measured by the ratio of
research expenditures to the gross
national product, it is about 13
times as large. Technological re¬
both

affects

demand

the

how

erroneous

that

inflation

(2)

The

growing

demand for
The strong
will be re-en¬
forced by the growing demand for
government services. As popula¬
tion grows and as the country be¬
comes more crowded, as per cap¬
ita incomes increase, as standards
of consumption rise, the develop¬
ment of natural resources, the in¬
vasion
qf space, the efforts to
control the weather, the provi¬
sion of solitude
and recreation,
the support of science and educa¬
government services.

tion

facilities

will

all

in¬

make

the govern¬

that

shall have

common

that only the government or pub¬
lic corporations can satisfy.
To
extent the dilemma may be

some

met

by curtailing the free

ices

Midwestern and Local Issues

needs

government

serv¬

and expand¬

ing the service charges and fees.
Such
changes make for fiscal
soundness, but the service charges
and fees do tend to raise the price
level.

White & Company

trade

unions.

that

economy

Members
Midwest Stock

MISSISSIPPI VALLEY

•

have

and

may

Private

Alton, 111.
Dallas,Texas

•

wires

•

Pcrryvlllek Mo.

der

will
any

most

5.7

1.12

22%

4.9

West Mich. Steel Foundry—
Steel and alloy castings

1.20

7.1

West Ohio Gas Co

1.00

2U/2

4.7

2.60

4.6

0.80

4.7

t0.66

21%

3.1

1.20

32%

3.7

2.80

3.6

1.20

47l/2

2.5

3.60

2.00

39%

5.1

2.20

4.6

0.80

4.0

1.00

47 %

2.1

0.80

13%

5.8

2.40

4.9

Natural

utility

gas

(distribution

only;

West Penn Power Co
Both

operating utility and hold¬

ing company

West Point Mfg. Co
Textile manufacturing

West Virginia Water Service
Wholesale

retails water

gas;

and

ice

Westchester Fire Ins. (N. Y.)
Diversified insurance

Western Assurance Co.

(Toronto)
Fire,

marine,

aviation,

casualty
Western

Casualty
Company

auto

and

Surety

Multiple line, fire 6s casualty and
fidelity and surety bonds

Western Electric Co
Makes

equipment

telephone
system

Bell

Western Light &

190

1.0

for

Telephone.

Supplies electric, gas,
telephone service

water and

Western Massachusetts Cos....
Electric utility holding company

Western

Precipitation Corp.-

Engineers and constructors of in¬
dustrial equipment

Weyerhaeuser Timber Co
Manufacture, conversion and sale
of forest

products

Whitaker Cable Corp
Manufacturer of automotive cable
products
Whitaker Paper Co
Paper products and cordage

Whitehall

Cement

Manufac¬
13

fl.54

3.1

0.75

15%

4.8

1.00

12%

7.8

turing Co.

0.30

3.0

4.00

378

0.60

19%
17%

Manufacturer of portland cement

Whitin

Machine

Works

Textile machinery

Whiting Corp.
Cranes, Trambean, chemical,

foundry and railway equipment

Whitney Blake Co
Insulated wires and cables

Whitney Natl. Bk. (New Or.)
Wiggin Terminals, Inc., v.tc.

1.1

3.1

Boston harbor

Will & Baumer Candle Co.—

5.7

1.00

*19

0.45

1.60

8.50

*34

1.00

24%

4.1

1.00

1.4

1.36

32%

4.2

0.99

19%

5.1

3.00

7.3

t0.48

3.4

Candles and beeswax

(Consider H.), Inc

Maple and cherry furniture
Williams & Co., Inc.

6.4

301/2

5.2

Distributor of metals

Wilmington (Del.) Trust Co.
Winters Natl. Bank &

surance

3.4

248

Trust

(Dayton, Ohio)

—

Life In¬

Wisconsin National

Co.

—

Life, accident, sickness and

hospitalization Insurance

Wisconsin Power & Light—
Electricity supplier
Wisconsin Southern Gas

Company, Inc.
-

natural

Operating
utility

—

gas

Oil

and natural

The

Goodwill

public

Company

oil

Wiser
Crude

gas

pro¬

ducer

WJR

Station

(Detroit, Mich.)

—

Detroit broadcaster

Class A
Diversified
•

51%

1.00

3.8

1.9

0.325

Wolf & Dessauer Co.
Fort Wayne department store
Wolverine Insurance Co.,
insurance

as to possible longer record,
dividends, splits, etc.

Details not complete

t Adjusted for stock

Y/e

\IN
MICHIGAN v

have

have excellent'

correspondent

barikj

facilities

Bank Offices

AT YOUR SERVICE

Certainly un¬
circumstances unions

have

1958

0.80

put per manhour?

Teletypes —SL 25, 26, 27

Paymts.to
Dec. 31,

power

kind

BLDG., SAINT LOUIS 1, M0.

Blooming ton, 111.
DuQuoin, III.
•

difficulty in justifying

greater

demand,

for

in¬

to:

V?
»,
Boston,
Chicago,
Cleveland,
Detroit,
Grand Rapids
Farmington, Mo,
Hartford,
Los Angeles,
Philadelphia
San Francisco,
Springfield, Mass., Wilmington, Del.

the

expect to have, can trade unions
be expected to
limit their de¬
mands to the increase in real out¬

Telephone —CEntral 1-0282
Springfield, 111.

American Stdck Exchange (Associate)

Exchange

1958

DETROIT

(3) The great bargaining
of

31,,

for goods

tion, the provision of transporta¬

tion

Dec.

Sanitation products

West Coast Telephone Co
Operating public utility

Willett

demand

Dec. 31,
1958

Based

Quota-

assume

necessarily means
that there is
something wrong
with the economy. A rising price
level
(inflation, if you will) is
likely to be a sign of vigorous
economic health, of an economy
possessing great capacity to de¬
velop new investment opportu¬

our incomes for us, but we
shall also be faced with the fact

of the Nation

12 Nlos. to

Divs. Paid

goods

consumer

part of

and Public Utilities Stocks

secutive

Years Cash

neers

for

Approx.
% Yield

Including
Extras for

West Chemical Products

level.

ment.
We shall be reluctant to
let the government spend a larger

Industrial, Bank, Insurance,

Cash Divs.
No. Con*

produce a slow rise in the price

creasing demands

PRIMARY MARKETS IN

PROGRESSIVE AND PANORAMIC

Each of these influences will tend

nities.

TABLE IV
Increases in

(1)

from page 45

THE OVER-THE-COUNTER MARKET
-

technological research;
(2)
the
growing demand for government
services; and (3) the great bar¬
gaining power of trade unions.

and the de¬
facturing,
where the recession
was
more
severe
but
unions mand for capital goods. It affects
Ihe demand for consumer goods
stronger,
than
in
non-durable
manufacturing.
A fourth bit of by developing new kinds and va¬
rieties of consumer goods. People
evidence
is
the success of the
United Mine Workers in raising acquire these additional goods by
going into debt, by drawing on
wages in the face of shrinking
accumulated savings, or simply by
employment and in the success of
saving a smaller proportion out
a few unions, such as the hosiery
of a
given volume of income.
workers,
in driving nearly
all
Technological research affects the
union firms out of business.
demand for capital goods partly
Some
spokesmen
for unions by
developing
new
consumer
have asserted
that unions have
goods that require new plant and
failed in their essential purpose equipment for their manufacture
of raising money wages. By com¬
and
partly by developing new
paring price increases in highly processes and equipment that rep¬
organized industries with price resent
new
investment
oppor¬
increases In poorly organized in¬ tunities.
dustries, they have argued that
The prospect that technological
unions have not affected prices.
research will continue to expand
Such comparisons are meaning¬
and that it will raise the capacity
less.
When labor costs are twoof the economy to discover and
thirds of all costs, it is impossible
develop new investment oppor¬
to isolate their effect and to judge
tunities
creates
the
probability
the
influence
of
unions
by that we shall be
living most of
whether or not the final stages in
the time in strong sellers' mar¬
producing a commodity happen to kets. That
means that it will be
be highly organized or not.
difficult to prevent the price level
from rising.
This prospect shows
IV

jectives of raising money wages.

membership

wages

greater in

successful in achieving their ob¬
Union

the

— a
set of condi¬
strongly suggest that
wages have been pushed up much
more
than bid up. A second bit
of evidence is that wages contin¬
ued to rise in the face of falling
demand for labor throughout the
recession of 1958. A third bit of

Ill

Influence

of the in¬

that

tions

tivity and in prices.3

The

of evidence

margins

profit

the change

Table IV compares

in wages with changes

bit

One

fluence of unions on wages is

the

price level will
three principal in¬
the
expansion of

be affected by
fluences:

Continued

dec¬

of the

movement

Shrinking Importance
non-farm wholesale

I expect that in the
immediately
ahead

grow.
ades

Inflation—A Problem of
vale

its capacity to

of the economy and

Continued from page

April 23, 1959

creases

that

productivity

exceed
mean

the

gain

that the par¬

ticular group of workers is claim-

Continued on^page
■

-.'-V

Member Federal
Reserve System

Resources

$360,000,000.00

DETROIT,

MICHIGAN

Member Federal

Deposit Insurance
Corporation

Number 5840

Volume 189

Continued

THE OVER-THE-COUNTER MARKET

PROGRESSIVE AND PANORAMIC

■

Extras for

secutive

tion

.
*

Based on
Paymts. to

Quota-

12 Mos. to
Dec.

Years Cash

Dec.

31,

wallboard,

Manufacturer

18y4.:

2.50

2.2

creases

3.6

engines

for

rise
*

controls

etc.

Woodward Governor Co—___
Speed

County National
(Mass.)_;

Bank
I

County

3.00

4.6/■

2.50

39V2

6.3

0.80

141/2

5.5

2.50

Sheet

143

1.20

York

fO.28
4.50

*12

2.00

36y2

5.5

f 0.57

isy2

3.7

Corrugating Co-i..

Metal stamping,

Furthermore,

4.0

fabricators

steel plate

and

their holdings and the securities
thus released have been purchased, not by the general public,
but by government
controlled
trust funds. Building a market for
long-term government bonds obviously means paying the market
rate of interest. This means getting rid of the present ceiling of

expected to create.

5.1

changed in January 1959

Wyatt Metal & Boiler Works
,

although
some employers now declare that
they will not concede increases
that exceed gains in productivity,
one
must remain skeptical until
one
sees employers hold
the line
in the strong sellers' markets that
vigorous economic expansion may
made.

justified

that they will not

mean

known as Worcester
Natl.
Bank; Name

Formerly

circumstances

most

does not

Worcester
'

and

propellers

;

bank market for long-term gov- 0f the large unions would have
eminent bonds. There has not consequences that are hard to pre—
been such a market for over 10 diet. Unions would lose some of
which exceed the average years. The banks and insurance their present ability to support
productvity cannot under companies have been liquidating strikes by some members while

ing the right to profit at the expense of the rest of the community. But the fact that wage in-

insu-

materials,

cushioning

lating,

•

0.40

wholesale plumb¬

ing and heating supplies-

York County. Gas Co—_____
Operating public utility
York Water Co

4.25%. The President has mentioned the

ing

desirability of eliminatthe ceiling, but he has shown

Operating public utility

Licorice paste for

7.8

Department stores in Midwest

Zeigler Coal & Coke Co
In Illinois and

Owns mines

Kentucky

mHWHHHUWWHHWHHWHWHWUHK
"

■'

•

inflation

about

TABLEII

OVER-THE-COUNTER

this

year

are

Cash Divs.

Including
Extras for

secutive

12 Mos. to
Dec. 31,
1958

Quotation

Dec. 31,
1958

Approx.
% Yield
Based on
Paymts. to

Dec. 31,
1958

and equipment.

Tennessee

Alabama

the success of the enterprise
in reducing the ratio of labor
costs tcr-sales. Experience shows
that this sort of incentive is carPable of evoking a,.powerful re¬
sponse from the ..employees

the

government

charges and fees for
that are of

commercial

services

value

order

special groups. Finally,
the inflation¬

to reduce

impact of government fiscal
operations, the government should
long last take the necessary

in NEW ENGLAND

Natural

Gas Co

4.9

24y2

1.20

healthy non-

steps to build up a

for

than 100 YEARS

Pipeline

Allen

(R. C.) Business Ma¬
chines, Inc.

0.50

91/4

5.4

2.00

371/2

5.3

0.25

1.0

FACTS ABOUT

Adding machines, typewriters, etc.

Thermal

Allied

Holding

Corp

NORTH JERSEY

heating equipment

co.,

Mart

Furniture

American

Building Co.

...

its past, present

Chicago real estate
American
Greetings

1.40

37
15%

3.8

1.00

8
8

6.3

0.81

17%

4.6

0.70

8.0

drinking water

Co.
nailing

Manufactures

fO.24

4y2
-

Details

FREE copy, write:

NEW JERSEY

2.4

20%

0.50

AND

TRUST

BANK

COMPANY

ball bearings
„

;

not

129 Market St., Paterson

1, N. J.

as to possible longer record,
stock dividends, splits, etc.

complete

t Adjusted for

Continued

page

Kidder, Peabody & Co.
Founded

1865

Boston, Midwest, Pacific Coast,

Members New York,

Philadelphia-Baltimore and American
PRIMARY

NEW ENGLAND
BOSTON

KIDDER

Stock Exchanges

MARKETS

Trading markets in

UTILITY and INDUSTRIAL STOCKS

SECURITIES

New

England Bank, Utility and

Industrial Stocks

CORRESPONDENT

& CO.,

INC., NEW YORK

Federal

Boston

Street,

Teletype: BS 338

Telephone: Liberty 2-6200

J. B. MAGUIRE & CO.,
31

Milk Street, Boston 9,

INC.

Massachusetts

Open-end Telephone Wire to New York
New

Springfield

Stock Exchanges

Community Relations Dep't.

5.3

machinery

Bard en Corp
Precision

Providence

press.
For your

financing

Auto

Poughkeepsie

Hartford

Atlas Finance Co

Auto-Soler

Teletype BS-288

Members New York and Boston

just off the

Arrowhead & Puritas Waters,
Bottled

Boston

New York

STREET, BOSTON

Telephone LAfayette 3*2400

Annual Report,

insulation

Inc.

Boston

New Jersey

Bank's 36-page

Diversified insurance

American Rock Wool Corp.—

15 STATE

teresting data

Assurance

Corp.

Mineral wool

Estabrook & Co.

plus other in¬

3.6

33y2

cards

greeting

Home

American
"

1.20

9
of

Manufacture

and future.

You'll find them

Corp.,

Class B

York—CAnal 6-1613
Bell

System

Boston-—HUbbard 2-S500

Teletype —BS

142,

145

2904
Portland, Maine—Enterprise 2904
Hartford, Conn.—-Enterprise 6800T
—' —

Providence, R. I.—Enterprise

for

upon

now

ary

0.6

351/2

0.20

possibilities

to increase their earnings
through earning a bonus based

to review
subsidies that
grants for the purpose of
determining which are meritori¬
ous and which are not and to de¬
velop
a
program
of
service

No. Con-

important

are

men

since the heart of the inflation

was

extent in- the transformation

0f the character of unions. There

carefully the many

KVHWUWVWVtWWWHUUWWHHHWW

gas

some'

problem is the tendency of wages
to outstrip productivity, the central attack on inflation should be

for

5 to 10 Years

Products, Inc

the

unless

and

that their capacity to contribute
to technological advance is surdemands that are being made on directed to limiting the economic prisingly strong. It is one' of the
the government indicate the need power of trade unions. Depriving
Continued on page 48

/:/for

Air,

—

higher than it was

index

DIVIDEND PAYERS

Air

governments

demonstration

Divs. Paid

Nevertheless,
the
new
unions
might drive hard bargains. There
would be rivalries among them
and each would have a strong
desire to make a good showing,
Thus, if there were three or
f0ur unions in the automobile industry, each might feel a strong
urge to make a better settlement
than any of the others. Hence,
breaking up the unions might increase their militancy and makft

government is willing to bring
Offers Solution to Wage-Price
out a savings type bond without
^Spiral,
a
maturity date paying interest
Solutions to the problems of
equal to a fixed amount of pur- rising labor costs may be found to

June, and the wholesale price
level was virtually the same as in
June. But the new and important

Consecutive Cash

Years Cash

term

being chasing power. The failure of
of the either the present administration
rather
remote
relationship be- or the previous administration to
tween
the state of the budget face up to the fact that there is
and inflation. The Federal Gov- no broad market for long-term
ernment is experiencing by far governments illustrates the sharp
the largest cash deficit since the contrast between what people are
Second World War. Nevertheless, willing to say about inflation and
in February the consumer price what they are willing to do.
Indeed,

<m-> »»-

given

done

good deal upon circum¬
stances, so that a complete policy
cannot be spelled out in advance.
Government spending is not the
heart
of the inflation problem.
depends

tobacco

Younker Bros
(

What

Young (J. S.) Co

and to fight for it.

Inflation?

4.8

•5%

Park

National

Concessioner,

other members work and pay spe-

cial assessments into a strike fund,

disposition to make it an issue
But unless the
ceiling is eliminated, there will reasonable settlements with them
not be a broad market in long- more difficult,

What Can Be Done About

Yosemite Park & Curry Co._

of their present

people to join or the con¬
scription of neutrals in labor dis¬
putes, would remove some glaring
injustices, but would have little
effect upon the bargaining power
of most unions. Breaking up some

1958

Wood Conversion Co

some

force

Shrinking Importance

Dec. 31,

31,

-1958

1958

Oivs. Paid

extraordinary privileges^ such as
the use of coercive picketing to

% Yield

Including
No. Con-

unions

from page 46

Inflation—I Problem of

Approx.

Cash Divs.

(1895)

Chrorticle

The Commercial and Financial

...

World-wide satisfied users

NEW

PHILADELPHIA

YORK

CHICAGO

LOS ANGELES

SAN FRANCISCO

World-wide representation
New

Tehee

Lowell

•

England Branches:

New Bedford

Springfield

•

Newport

Taunton

•

•
Providence
Worcester

The Commercial and Financial Chronicle

(1896)

production and employment.
Higher prices are needed to pro¬

Continued from page

tect

profits in "the face of higher

labor costs ancl

Inflation—A Problem of

Shrinking Importance
to

force

labor

much

These

advantage that it does
not build up class conflict. On the
contrary, it helps the employee
become an
integral part of the
mind

and

the

not

are

even

with

connected

re¬

national
this

defense. His willingness to do

will be

good test of his willing¬
ness
to come to grips with the
problem of inflation. I suggest,

his

duties

quotas

motely

it makes

well

inflation

discourage

furthermore, that Congress pro¬
vide for immediately starting a

muscles; and it gives him a good
opportunity to share in progress
by making technological change

that

program

eliminate

yield him an increase in pay.
Fin a 11 y, for those who are
deeply
concerned lest inflation

duties

all

within the

gradually

would

and

ten

years.

quotas is
in

good test
inflation.

produce dire catastrophe, there is
the
remedy of reducing# tariffs
and eliminating qu ot a s.
This

People

good step to take even
in ihe absence of a problem of
Inflation because it would expose

support the elimination of duties
and
quotas cannot claim to be'
strong opponents of inflation.

would be

interest

one's

who

willing

not

are

the American economy to a more
VI

vigorous competition from abroad.
Foreign
competition
would
be
would

wholesome

tage.

clusion

not

should

much

ex¬

pected from reducing tariffs ancl
quotas because,

eliminating

(2)

costs

increases

verse

labor

For

propensity of the economy to
remains
unchanged.
Like¬
in

shift

unfavorable

generate

labor

costs

rise,

higher

effects of higher labor costs.

stiffen the resistance of American

to. wage demand s,
thereby retarding the tendency of
employers

in¬

the

saving function of
the
economy
are
virtually the
same at the new cost-price level

inflation

Creeping

(4)

likely to break into

not

gallop. The

argument that it will break into a

that speculators
anticipation of
an increase in
prices, that prices
will be bid up, and that as they
are bid up the tendency to buy in
anticipation of higher prices will
be strengthened. This theory runs
gallop

inconvenient

the

fact

America

North

1953

the

price

consumer

1957

and

except

cases

ceptions

rise

index

between

less

was

than

The

two.

two

ex¬

the

rise

level

the

United

the

States

price

consumer

second

period

was

between

1948

1953

and

was

North

America

two

recent

periods:
Austria

100.0

12.0

5.3

Canada

Denmark

23.5

26.0

35.1

4.2

RUSSELL M. DOTTS
Manager of
Department

position

reserve

/«««cs

(AUCfte,

(5)

United

!'rwriir aTaMu"^P»"SecurUi"
Corporate
Outlet.
frading

Market,

the

out of

one

can

sure

will bring, but,

and

out,
trial

prices in

the

of the

States.

BUILDING

Teletype —PG

469

PITTSBURGH
Telephone

—

19, PA.

GRant

1-1875

trial

the

future

I have pointed
other

most

Since

than
the

countries

indus¬

subject

the

United

principal indus¬

are

same

Continued

less

influences

2.8

40%

1.2
:

0.20

1.30

16%

8.0

1.30

6.5

1.80

3.6

0.90

20%

4.4

0.80

19%

4.1

0.80

14%

5.4

and

1.20

3.8

0.6

foundry

Employees

Insurance

Diversified insurance

Corp
Transmission

Commonwealth

natural

gas

Telephone Co.

(Dallas, Pa.)
Telephone service

Consolidated Freightways, Inc
Motor

freight

Consolidated

Rock

Products

Co.
Gravel

and

sand

Consumers Water Co
Holding

co.

Continental

Lines,

Transportation

Inc

0.70

fO-475

2.4

—

1.085

5.4

7.1

Transports commodities

Cooper Tire & Rubber Co.__
and

Tires

tubes

Corning Natural Gas Co
Operating public utility

Cosmopolitan Life Insurance
Co

Life

fj0.04

20.00

1.00

21%

4,6

0.40

2.0

1.25

3.5

0.7

insurance

Cosmopolitan Realty Co

250

8.0

Denver hotel

Craddock-Terry Shoe Corp.Shoe

manufacturer

Insurance

Diversified insurance

etc.

pumps,

Chicago Trucking Co.,
9

1.00

20%

4.9

*10

1.05

21%

4.9

1*0.57

26%

2.1

carrier

common

Cement Co.

equipment

r^.

Chemical Arts, Inc.__

16%

0.50

0.45

page

3.0
11.3

East Tennessee Natural Gas

Co.

21%

1.9

0.10

1.6

etc.

Valves,

0.45

4.7

0.40

6.2

0.50

6.5

1.00

1.0

0.30

11%

2.6

4.7

signals

•:

Equipment Acceptance

Corp
Farm

equipment

Wholesale
la ted

Fearn

financing

Brothers

Farmer
»

5.3

traffic

and

pumps

Fairbanks Co.
Farm

11%

0.40

Eastern Industries. Inc
Mfrs.

0.60

-.-

Supplies Oak Ridge

most

markets.

what

28%

0.50

Lacquer wood grain finishes

countries have risen consid¬

erably faster
PLAZA

States

world

0.80

Equipment

Eagle Stores Co

Creeping inflation will not

priced

9.1

Commonwealth Natural Gas

roast

coffee

and

re-

products

Inc

Foods,

Soup bases,

seasoning compounds,

etc.

Life

Federal

(Battle
Life,

Casualty Co.
Mich.)_—

Creek,

accident & health

L__

Fifteen Oil Co
Oil

Fort

and

gas.

Worth

Gulf Coast

Steel &

Machinery Co
Power

FRITO
Food
•

cause

"Kentucky Derby"

Civil Service

Bank vault

Consequently, whether or
not creeping inflation becomes a
gallop rests in the last analysis
with
the
monetary
authorities.
Unless they see fit to provide the
necessary reserves to finance gal¬
loping
inflation,
inflation
will
never become a gallop.

skTSL'T1
Kemten

Railway

Di-Noc

banks.

T^nsylvania

■'

0.49

Diebold, Inc

their credit worthiness and partly

the

4.3
•

CI.

important of these reasons is the
simple and obvious fact that it
takes money to buy goods. If peo¬
ple wish to buy in anticipation of
higher prices, either they must
curtail their purchases of many
things (which is deflationary as
far as those particular things are
concerned) or they must draw on
their credit. Their ability to draw
upon
their credit depends ujfon
upon

15
;v..-v

Portland cement

into

the

but

drop,

0.65

Churchill Downs, Inc

tendency for the rate of increase
prices

4.5

.v"

Inc.

6.0

7.5

enter

0.7

wells

Railway equipment
(malleable)

5.0

9
,v

^ Co.

5.0

reasons

■

bicycle

Variety chain in South

Various

1.45

5.0

Newspaper

Motor

13.0

11.1

lining,
'."v ,.1:

oil

Chicago

23.0

29.9

brake

etc.

Dewey Portland

12.0

20.0

14%

holding company

8.0

Sweden

13%

Chicago Daily News, Inc

10.0

28.2

0.70

0.10

Central Public Utility Corp...

12.0

16.3

West Germany.

Corporate and Municipal Securities

tubes,

tires,

Turbines,

16.0

Spain

Teletype

Municipal Bond

Inner

6.0

29.9

4.6

manufacturing
ancl
of
records,
albums
and pre-recorded tape
V'—,

20.0

Britain...

wholesaling

Denver

16.0

50.3

66.7

—

Switzerland

2-2820

President in Charge of

6
*

De Laval Steam Turbine Co.

6.0

4.6
.

According,

7.0

19.0

Belgium

Capitol Records, Inc.

1953-57

—...

21%

Craftsman
1948-53

16%

1.00

•

Gas lift equipment

very

rapid, the rate of increase dropped
in the subsequent five years. The
following table compares the rise
in the consumer price index in 16
industrial countries in Europe and

PHILADELPHIA 2, PA.

Corporate Department

Austria, France, Norway, Sweden,
and Great Britain, where the rise

United States

Vice

Telephone

less than half the rise in the first

period. Even in countries such

0.75

Telephone service

the

1953 in all

Belgium and Switz¬

were

small.

was

Incorporated

EDMUND J. DAVIS

toys

Cameo, Inc

the

Norway

REctor

and

California Interstate

erland, where the rise in the con¬
sumer price index in both periods

Rambo, Close & Kerner

1958

Operating public utility

that

prices do not behave as the theory
says
they do. Among 16 indus¬
trial
countries
in
Europe
and

Ireland

PEnnypacker 5-280O

Games

assumes

others buy in

and

Netherlands

1958

Brooklyn Borough Gas Co._i

Texas

example,

Telephone

1958

Cedar Point Field Trust, ctfs.

opportunities and thereby limiting

York

(Milton)

prices.

Italy

New

Dec. 31,

Carlisle Corp

Great

1518 LOCUST ST.,

Paymts. to

they were at the previous costprice level. If this is so, the rate
of saving has not been adversely
affected by the rise in costs and

Finland

Telephone

tion

Dec. 31,

Based

France

Phila.

12 Mos. to
Dec. 31,

Divs. Paid

Bradley

is that both the investment func¬
and

secutive
Years Cash

result

vestment function. The net

tion

Quota-

in prices prevents

the rise

wise,

Extras for

to offset the
the origi¬

Approx.
% Yield

Including

ex¬

save

higher, prices are
needed to prevent higher labor
costs
from
limiting investment

would

and

consumers

tend

needed to protect the
community against possible ad¬

difficult for American firms

pass

trans¬

prices are

make it

would

facilitates

which

into higher prices.

imports. Nevertheless, the re¬
of duties and the elimi¬

duction

quotas

the first

income, thereby facilitating the
translation of higher labor costs

exports of finished man¬
ufactures in 1958/ were 2.4 times
our

two-fold.

are

circumstances

ufacturers is indicated by the fact

nation

costs are not
a
cost-price
for this con¬

reasons

higher labor costs into
higher prices. In the second place,
higher labor costs under most

manufacturers)
can
undersell their foreign rivals. The
strong position of American man¬

our

conse¬

place, rising wages will be ac¬
companied most of the time by
a
high rate of technological in¬
lation

(especially

that

The

novation

general rule, American producers

labor

produce

squeeze.

'/■'■■■>

Too

Rising

(1)
likely

industries where
comparative advan¬

this country into

they are at a

the

increase in labor costs,
nal

Cash Divs.
No. Con-

labor

rising

savings.

rise between 1948 and

comparative disadvantage in

of inflation must distin¬
guish between the effects of the
rising labor costs and the effects
of rising prices.
quences

industry. In addition, it would en¬
courage capital and labor to move
from industries where they are
at

discussion

spur

efficiency and to inventiveness in

upon

into

Consequences of Inflation

because it

industry

for

good

PROGRESSIVE AND PANORAMIC

rise, an in¬
prices is needed to limit

that prices rise

tent

quotas

Will¬
ingness to support the elimination
of duties and

costs

page

costs

encroachment

the

from

Thursday, April 23,1950

THE OVER-THE-COUNTER MARKET

the community.

labor

crease

quotas. I suggest
that the President begin the at¬
tack on inflation by withdrawing
the recently imposed quotas on oil.

portant

production;

elimination

would

take

reduction

the

the active cooperation ol
employees in reducing the ratio
of payrolls to sales is a promising
method of attacking the central
cause of inflation. It has the im¬
listing

process of
use
of his

could

ment

En¬

waste.

(3)

rising wages to push up prices.
No single step that the govern¬

interest and ability of the

tential

distribution
—

of income

shortcomings ol' management that
it has allowed much of the po¬

to preserve,

original

the

less,

Continued

...

f0.74

equipment

CO.
products
Company's advertisement

See

Funsten

0.20

transmission

(R. E.) Co._

page

2.2

4.6

37.

0.60

Sheller and packer of pecans, wal¬
nuts and almonds

Gamble Brothers. Inc

0.65

5.9

Cement Co.__

0.80

23 %

3.4

Glitsch (Fritz W.) & Sons, Inc.

1.00

12%

8.0

Lumber

products

Giant Portland
Portland

T___

cement

Refining equipment
"

Details

Adjusted for stock dividends, splits, etc.

not

complete

to possible

one
share of Cosmopolitan
each 52 shares held.

j Plus

longer record,

Funeral

Homes

common

for

Number 5840

Volume 189

Continued

THE OVER-THE-COUNTER MARKET

from

page

nicians.

And

certainly

Cash Divs.
Including

Approx.

Extras for

Quota-

secutive

12 Mos. to

tion

Years Cash

Dec.

Based

1958

0.70

1.00

20%

Vermont

4.9

0.70

13%

5.2

Greenwich Gas Co
Public

utility

Distributor

—

"The

0.80

7.3

0.70

1.20

4.8

1.26

30%

4.1

2.65

78%

3.4

0.75

4.2

3.00

4,3

___

Boole

_____

Hagerstown Gas Co.___
Natural

Teller women's

Bonwit

Htibinger Co.
Corn

5.4

stores

______

refining

Hudson Pulp & Paper
Class A

,...,

supplier

gas

Hoving Corp

Pulp,

and

paper

Corp.,
-

Hugoton Production Co
Natural gas producer

Indiana Gas & Chemical Co.__
Coat

•;

International Textbook Co.
publishing

Printing,

study schools

Interstate Motor

System

Freight

4.7

0.80

12%,

0.30

electric

6.5
.

equipment

Jacobsen

Manufacturing Co._

Power lawn mowers

credit

*5.

1.60

18%

8.6

0.25

4.0

1.20

23%

5.1

jewelry stores

Kelling Nut Co

nuts

: Edible

Keyes Fibre Co.__
and

Manufacturer of molded pulp

articles

plastic

0.8

Kay Jewelry Stores, Inc
-Retail

52%

.0.40

»- 8

Pacific Coast

6.4

3.00

>:
Mortgage banking and real estate
Kaiser Steel Corp

Leader

5.2

*•

Jersey Mortgage Co

11%

-___

aircrait

Manufactures
r

;

f0.525

10
carrier

Jack & Heintz, Inc

Cement

Portland

Keystone

„

are:

States

ards'

the

5.8

2.20

1.20

22%

5.3

Lee & Cady Co.—
Wholesale grocery chain

0.60

0.25

6.9

2.75

0.50

.Manufactures cement

Langendorf United Bakeries.

many

gether the three features make for
plants has prevented management a vigorous and progressive econfrom exercising proper control of omy. But these three features also
operations.
tend to produce inflation — not
But
American
business
must galloping inflation, but the slow

upward creep in the price level
that results from a strong demand

United

States — a
useful spur to efficiency and, at
least, a modest check on increases
in prices. The need for more foreign
competition
in
American
markets is shown by the howls of
anguish which arise whenever a
few
imports enter the country,
Our
exports of iron and steel
products in 1958 were more than
twice as large as our imports; our
exports of machinery were seven
times as large as our imports; our
exports of cotton manufactures
were nearly twice as large as our
imports. Nevertheless, all of these
the

for

for goods and
labor costs.

slow

ActfitA

riaoT

Louisville Investment Co
Formerly known
as
LouisviHe
Transit

Co.

changed

Name

5.3

3.6

July 1958.

Co. Inc.

Marmon-Herrington

equip-

Heavy duty trucks, mining
ment and supplies

5.8

0.40

3.00

products

Material Service Corp
'

0.9

351

•

0.05

11%

0.4

1.70

(W. L.) CORP—

Electronic

33%

5.1

equipment

See Company's

page

59.

McNeil Machine & Engineer¬

ing Co
industrial
lubrication
equip¬

Tire

curing
machinery,

presses,

ment

•

21%

1.9

0.86

31.3

1.00

22%

4.5

0.625

0.8

1.16

25%

4.6

Metals Disintegrating
Metal

0.45

5.8

0.40

powders

Eagle Oil Co., Ltd.
Ordinary

Mexican

interests

Property

Michigan Gas Utilities Co.—
Natural gas

distributor

:;:6

Michigan Surety Co.
Diversified

Natural gas distributor

Club,

Monmouth Park Jockey

Common and VTC
Thoroughbred horse racing
Details

stable price

not

complete

to possible

longer record,

States.

United

the

are

the

owners

Continued

Mahar has be¬

sufficient

interest

non-bank

market

build

to
for

page

Drackett Co.

Manufacturing Co.

com.

Hamilton, Ohio
Hillsboro, Ohio

Telephone

mm
lYf&j
and

pfd.

Cooper Tire & Rubber

CHICAGO

1 1

iCom

ILL.

sum

many

Member

lieve

New
other

York

Stock

Charleston, W. Va.

Marion, Ohio

up:

active

been

the

investment
Richard

M. Mahar

securities

in¬

dustry for the
—

—

past ten years, was formerly associated with Shearson, Hammill &
Co.

senior

their New

York

office

Security Analyst.
-

Chicago Analysts to Hear
CHICAGO,

111.

At the

lunch-

^daUthe men mleon

meeting of the Investment
The
SdudesanimU%
rott and Analysts Society of Chicago to be
The eliminahon of duties and held Apri, 23
the Adams Room
^

mfke onlv slow nros- of the Midland Hotel, J. E. JohnP«>bably fZlirZ iJuSJSfn
Chairman, P. E. Haggerty,
ress, but American industry will pres'i(£nt and k. F Smith Secbave the good fortune to meet retary and Treasurer of Texas Inincreasingly effective competition struments wiU address the group,
.

Rittmaster, Adelberg
Rittmaster, Adelberg & Co. will
be formed as of May 1st.
The

firm, which will hold membership

the New York Stock Exchange,
will have offices at 261 Madison

Avenue, New Yoik City, and at
1 Wall Street. Partners will be
Aithui Rittmaster, Ji., Arnold
Adelberg, who will acquire a
membership in the New York
Stock Exchange, general partners,

and Mindelle Gross and Gilbert
Rittmaster, limited paitneis.
.

Distributors

Underwriters

Dealers

Corporation Securities

The problem of in¬
important
than

less

dire

The

portance.

results

pre¬

inflation have
happened, and are not likely

not

happen.
I

that the rate of in¬
in prices will continue to

expect

crease

has been doing for
twenty years, but I do not expect
to see it completely cease in the
foreseeable future. I am pessithat

the

Canadian

been

strong in spite of
Canadian
price
level

leading exchanges

OHIO

reasons

tractive

Teletype—CI 585, CI 232

THE

FIRST CLEVELAND

CORPORATION

4 Note

Exchange

STREET, CINCINNATI

Phone—MAin 1-0560

De¬

dicted for creeping

rapidly

WALNUT

who has

Municipal and

Greensburg, Ind.

Chillicothe, Ohio

326

their

partment.
Mr.
Mahar,

people would have us be¬
and is diminishing in im¬

drop,
Wheeling, W. Va.

pa n y

Athens, Ohio

and

Research

VII

to
2,

Man¬

ager

government bonds. Progress
in
making a critical review of the
multitude
of
subsidies
in
the

which

policies is to be expected. Such
change will strengthen the dol¬
lar
by attracting investmentseeking funds.4

flation

OHIO

them

Trade:

DAYTON

with

ated

long-term

bers and to win the approval of
the public may lead unions to embrace wage payment syst<^msthat

associ¬

come

party wins in 1960, a change in
the direction of more expansionist

Cincinnati

an¬

cult to get the government to take
such an elementary step as paying

opportunities,
they can find such opportunities
in limited quantities outside the
United States, especially in Can-

Summary

Hobart

ex¬

that

nounce

Richard M.

looking for produc-

regardless

other

leading
changes,

investment

But

Exchange

and

dividends, splits, etc.

t Adjusted for stock

of the New York Stock

tardy and spotty. It will be diffi-

abroad.
.^be ^*ct that inflation is of
diminishing importance means
that inflation is less important
than
^thcr economic probada
and
some
parts of western lems. Certainly, at the present
Furone
In
some
Darts
of
the time inflation is far less important
world 'investors
had
better
be than the problem of 4.4 million
prepared to recover their original unemployed. Likewise, it is less
investment rather promptly be- important than the huge waste
cause it is likely to be confiscated.
resources caused by the misThe
attraction
of
the
United direction
of production m the
Statps
for funds
at the oresent farm program. It is less important
time is abnormally low because of than the wastes that follow from
the unwillingness of the govern- the lack of adequate facilities to
ment to pursue expansionist poli- train skilled craftsmen and tech—

of funds

cies.

insurance

Mississippi Valley Gas Co

not

level they will have
in doing better than
keeping their money right here in

tive

Limestone

MAXSON

people who predict a
flight from the dollar do not say
where the money is to go or what
the money is to be looking for If
owners of funds are searching for
difficulty

Marsh Steel Corp
Metal

inflation

Creeping

(6)

likely to cause a flight from the

PHILADELPHIA, Pa. —Wood¬
cock, Hess, Moyer & Co., Inc.,
123 South Broad Street, members!'

Action against inflation will be

West Coast baker

dollar. The

Woodcock, Hess, Moyer

climb in

budget and in getting rid of the
unjustifiable ones will be slowin fact, it may never occur. Public
hostility to inflationary wage settlements may slowly force unions
industries have expressed alarm to moderate their wage demands,
over the influx of imports—as if
but their demands may still be inthey had the right to pick the flationary. The need of unions
pockets of American consumers for an idealistic, principle to
unchecked by foreign competition, arouse the devotion of their mem-

7.1

Ley (Fred T.) & Co.—

Co.

both

Richard Mahar Joins

which

movement

thing

\i
motor

Common

The features that stand out

expect foreign competition to become stiffer. This will be a good

home

and

unions

products

paper

trade

by various special
circumstances.
In
Britain,
the'

and

Knowledge"

"Encyclopedia Americana"

ex¬

government
and
industry
afraid ot expansionist policies and
(1) thriving and increasingly have deprived the country of bil¬
successful technological research; lions of dollars of production and
largest manufacturer outside the (2) the assumption of larger re- millions of man years of employ¬
United States in the free world, sponsibilities and the provision of ment
which
the
country could
taxes are exceedingly burdensome more and better services by govhave had if it had not made
and efficiency in much of indus- eminent; (3) a powerful and dy- fetish of
a stable price level.
try is held down
by wasteful namic trade union movement,
union
rules
and, in the metal
Each of these features of the
trades by an unruly shop steweconomy
is good in itself. To-

2.9

0.85

greatly

insistent popular

United

28%

____

powerful

fortunately, foreign countries are

Grolier Society, Inc..

natural gas

been

have

aggerated and that some of these

demand
for social services that precludes

1.2

inflation

results will not hapen at all, it
mistic about our chances o: com- wiu give attention to other probpletely halting creeping inflation iPm<!__ nartirniariv tho nrnhlpm<3
because I am optimistic about the of unemployment and of achievmuch reduction in taxes), all of future of the economy The kind
ing an adequate rate of growth,
the industrial countries are likely of inflation that we shall get is
The
greatest
harm
and
waste
to
experience
about the same the kind that often accompanies a caused b inflation and the fear of
movement ot the price level. Un- vigorous
and healthy economy. inflation is that they have made
,

(such

and

Auto financing

Green Mountain Power Corp.
Public utility, electric and gas in

from a mul¬
the pub¬
realizes that the bad results of

titude of occupations. As

Shrinking Importance

Dec. 31,

Government Employees Corp.

that exclude Negroes
lic

Paymts. to

Dec. 31,

31,

1958

Divs. Paid

Inflation—A Problem of

% Yield

No. Con-

less

important than the waste and the
injustice
caused
by color bars

PROGRESSIVE AND PANORAMIC

•

(1897)

..The Commercial and Financial Chronicle

than
are

the
(1)

price
the

investment

dollar

has

the fact that the
has
risen
more
level here.
The

abundance of
opportunities

at¬

Canada, and (2) the expansionist policies
of the Canadian government. „ w,
k
,

Member Mid nest Stock Exchange

National City E. 6th

CLEVELAND
Telephone PR 1-1571

Building

Teletype CV 443—CV 444
('

The Commercial

(1898)

Continued

from page 49

;

„

TIE MER-IK-COUNTER MARKET
Cash Divs.

Cash Divs.

•f'"
*•'

Extras for

Quota*

Plastic

secutive

12 Mos. to

tion

% Yield
Based on
Paymts. to

Dec. 31,

1953

1958

and

rubber

;

12%

2.5

Sulphite bond* & coated
Steak 'n Shake, Inc.-

ing Co

Name

3.25

National Gas & Oil Corp

1.00

Cranberry products

9.1

1.225

23%

fl.47

44%

N. Y. Wire Cloth Co.—
metal

Insect

7.6

Machinery,

1.30

Corp

0.75

15%

4.8

0.60

5.5

0.60

7.7

0.10

1.60

5.7

0.69

Sale of water

17%

3.9

0.15

0.10

0.20

3.1

2.0

Pacific Outdoor Advertising
.

10%

0.40

4.9

5.%

:0.28

0.10

27/s

3.5

0.40

21 %

1.9

f0.79

14%

5.4

V; 2.00

4.5

614

N. V. O.

Manufactures

172

5.8

2.8

20%

1.20

5.9

Business and technical

f0.34

20%

0.90

5.0

1.30

20%

6.4

4.8

2.00

4.3

f0.96

•

2.50

"54

4.6>

•

Pioneer Natural Gas Co.—

32%

1.40

and

Details not complete as to possible

t Adjusted for stock dividends,

100%

stock

kraft

2.1

11%

dividend

was

f0.19

1.6

rag

page 45.

February

Class
Flour

1959.

accident,

health, anid

San Antonio

Harlingen Lubbock Midland Odessa Tyler

1.501

23%

6.3

0.35

13'

2.7

1.Q0

24%

4.0

0.3

fO.12
1.50

32%
5%

11.2

0.60

10%

2.00

5.1

0.80

13%

5.9

1.00

22%

4.5

Vulcan Corp.—

1.00

26%

3.7

Waverly Oil Works Co.——

1.5

Weed Products Co.™

2.00

130

0.35

;

0.75

2.3

10%

4.8

1.00

17%

5.8

0.32

4.2

0.40

4.3

1.20

20%

Toiletries
y '
W>c+n,,>? TTfilitipg PflTT)
-

Holding company and publishing
telephone directories ' '

2.3

Wurlitzer

Company..—i

Manufacturer and

0.15

0.50

——_

retailer

—

musical Instruments

—

Oils, greases: and. soaps

3.5

Wyckoff Steel- Co.™

—

0.20

3.5

and grain

Maine — Mona

Co.,

Hope Street, members of the New

Lester, Ryons Adds

LOS

Details not complete as to possible longer record.
t Adjusted fbr stock dividends, splits, etc. r ;

ward Wren is

Lester,

York and Pacific Coast Stock Ex¬

ANGELES, Calif.—G. Ed¬
now

Ryons

associated with

changes.

Co.,

H. E. Work & Co.

623

South

Rl 1-9033

Est.

was

formerly

Helping Build the

W. L MAXSON

Expanding West..

CORPORATION

Exchange

American Stock Exchange

(Associate)

in local and national inactive

bank, insurance.

widest communication in the state.

1915

5alt Lake City

los

Members New York Stock Excange and Other Principal

J. ArHogle & Co.

offices in 17

Tucson

Western citicf md New''Wory rc^ularly

Spokane

buy and sell a wide variety of

Including:

unlisted securities

SYSTEMS

Beverly Hills

f. including such

Over-the-Countcr

Long BeachRiverside

offephgs as:

Reno

ELECTRONIC SCANNING
CYPRUS MINES

UTAH

CONSTRUCTION!

CO.

Butte.

RADARS
•y

CANADIAN SUPERIOR OIL

MISSILE FUZING SYSTEMS

LING-ALTEC ELECTRONICS

CAl RAY BAKERIES, INC.
MOUNTAIN FUEL SUPPLY

LUCKY MC

URANIUM

Western Union Telefax "Tex"

Call

Collect for markets you can't get elsetvhere!

DIEGO

IMPERIAL CORP.

Ogden

■

EQUITY OIL

CORP.

DEVELOPMENT

CORP.

Idaho Falls
MAGNA

INVESTMENT

Missoula

475 Tenth Avenue

New York 18, New York

•

;

Pocatello

Provo

SAN

-JAckson 6-1673 TWX HO 590

INTERSTATE MOTOR LINES

COMPUTERS
St., Houston 2, Texas

Exchanges

Denver
...

For the Armed Services

COUNTERMEASURES

Angeles

San Diego

J. A. HOGfcE & CO.

MISSILE GUIDANCE

2316 S. Main

with

New York

DL 196*197

Member New York Stock

154 State Street.

It!

FIRST IN TEXAS!
.

5.9'

Cold finished steels

and Production

5.5

Machine tools, earth moving ma¬
chines,'textile'machinery, etc.

Research, Development

4.6

0.60

SPECIALIZING IN

and industrial stocks

group

3.6

Putnam

& Midwest Stock

Houston

pipeline

gas

THE

Fort Worth

1' '

^V',

13%

Bangs has jdined the staff of F. L.

We Trade

Austin

—

natural

V •'

f0.49

Milling Co.
B, voting

If it's in TEXAS

DALLAS

Pipe

Wood heels. bowling pins, etc.
Warner & Swasfcy Co.—^

5.0

papers

AUGUSTA,

Building

/■''

Gas

0.40

With F. L. Putnam

Mercantile Dallas

^''

Resort hotels

(Special to The Financial Chkonicle)

MISCKR, FIERCE K CO., INC.

Standard

longer record,
in

,1.26

Virginia Hot'Springs, Inc

Tobacco merchandising

splits, etc.
declared

2:5

5.3

025

and

5.2;; r"

X
• •

Vending machines'

;

Tobacco Co.

••able

Corporation's advertisement

United Transit Co; (DeL)
Street railway & bus lines
Vendo CO..^™*——

Standard Commercial

4.3

7 ;.

Sugar production

Cloths and sheetings

1.00

fr~f'

■

9
9

Spartan Mills
7

4.2

United States Sugar1 Corp

1.3

Life,

Diversified operations

4.3

CARLE

CORP
wire

Newsprint

Serves West Texas & New Mexico

covered

Southwestern Engineering Co.

Philadelphia apartment house

0.50

Southland Paper Mills, Inc.—

Natural gas

Philadelphia Fairfax Corp.—

WIRE

0.20

Electrlo utility

4.4

33%

Co. in the City of N. Y.—>

October 1958.

Sulphite,

1.40

•

United States Life insurance

*■

Southern Nevada Power Co.

Petersburg Hopewell Gas Co.

PLASTIC

Sorg Paper Co.—

C'ry

inturancar

Line Corp.

Retail drug store chain

Manufacturer of heat transfer

rule

system

"•

Sommers Drug Stores Co

8.9

1.25

••

Motor freight—common carrier

Formerly known as Snyder Tool
Engineering Co. Name changed
in

3.3

Industries* Ihc.i———

Transcontinental

1.7

16%

Fire & casualty

Snyder Corp

Journals

Perfex Corp.

5.3

Special machinery

t0.54

pipeline*

Toronto General Insurance
Co. -il—c-ld.--1--J

and

Smith (T. L.) Co
Concrete mixing equipment
Smith & Wesson, Inc..

Regional super market chain

•

p43

Penton Publishing Co.

• See

4.00

1.00

Superior Co

1.20

controls

products

peanut products
products

10.00

electrlo

automatic

Penn Fruit Co. Inc.

Plastic

7.3

Pistols and revolvers

Penn Controls, Inc.

2.1;

•.

Interstate

fluid system components

•

I 5%

Rockefeller Bldg., Cleveland

real estate

Parker-Hannifin Corp.Manufacturer of hydraulic and

28%

;

Transcon Lines.

Park-Lexington Co.

-k

0.40

Printing Co

Margarine,
salad

Automatic time controls

„

Shedd-Bartush Foods, Inc

Laundry eaulpment

3.5

(N. Y;)

ing life)

Paragon Electric Co.

26%

0.60

'•HaydJ^v ^lay
6hale aggregate
Title Guarantee and: Trust Co.

Co. (NYC)
Multiple line insurance (exclud¬

Trailers

Pantex Manufacturing Corp.

r0.93

.Natural:gag. transmission, 4

Texas

and pumps

surance

Palace Corp.

--.

WyHd '>?•; A' -vy ;•>*'
Pipeline Co';. 'CECWlW&dEHEd y:Al;20A ,23%

Seaboard Fire & Marine In¬

3.8

advertising

holdings'

Operates natural-gas

Magazines

Co
Outdoor

Texas, Illinois Natural Gas

Rochester, N. Y., bus lines <'

Rumford

Texas Eastern Transmissi"»i

Rochester Transit Corp.——

Plastic products

5.0

InO".

Northwest Plastics, Inc.

spring assys.
foams,- -'refrigerator

Pipe lines

1.8

Manufacturing motors, fans,

Operating public utility

0.50

;

Californla land

hoists & cranes,

Corp.

Tennessee: Natural Gas Lin es;'

parts

Robbins & Myers, Inc

3.8

Tejon Bahch

Ritter Finance Co., Class A—

Northwest Natural Gas Co

•"/"r-'petroleum gasfes'

4.0

;

electronic

Personal loans

6.2

0.30

Suburban Gas Sefy^ce, Inc.,.

and
components,
variable condensors, auto push button tuners,
military tuners •/" •

utility

Northport Water Works Co.
(Northport, N. Y.)

condensers, thermofielay:
; s.
'

electronic

2.4

;

valves, etc.

Pumps,

Metal stamping and fabrication

Natural gas public

;

Inc.-

Manufacturing

0.30

;

Radio Condenser Co

North Penn Gas Co.
,

10
10

7.5

4.00

Racine Hydraulics &

screening

Norris-Thermador

0.20

Queen Anne Candy Co

3.3

1958

shelves.. ?jad

Bar and bulk candy

Jersey Natural Gas Co.

financing

'polyurthane

•

\ Diversified insurance

5.3

Pennsylvania

1958

Cushion l and tback

Co.

Quaker City Insurance Co.—

Natural gas distributor
•

grade crude oil

New

Gas

„

papers

Stubnitz Greene :Corp._T_—

Cold storage facilities

National Cranberry Assn

Natural gas and

Natural

^on,; Paymts; to
Cec;31;; Dec.31,

Sterling Discount

changed In August 1958

Northwest

Dec: 31>

Restaurant chain

4.2

f0.76

Quaker City Cold Storage Co.

4.9

Mortgage financing

•

Portable electric tools

r-v.v'v-

Portland Gas & Coke Co.

2.4

Investment

Years Cash

f0.32

Porter-Cable Machine Co

Retailing

Mutual Mortgage &

.^-^e'ortiveilJMos.'.to

Standard Paper fltenufactur-

Auto

t0.09

3.4

Portable tools

■

~V *

specialties

Portable Electric Tools, inc.-

Moore (William S.), Inc

•}• —•
^

.Divs. Paid

Dec. 31,
1953

Divs. Paid

'/'•' I

% Yield

•ri.«^Np.Xon!*.--Extras for. ,KQdota«,. Based

No. Con*
Years Cash

Approx.

Including

0.25

Plymouth Rubber Co

Approx,

Including

% Yield

Extrasfor

PROGRESSIVE AW PANORAMIC

Approx..

Cash Divs.
Including

Quota*
Based on
tion
".secutive 12 Mos; to-.
Paymts. to
Dec. 31,
Years Cash Dec. 31,
Dec. 31,
1958
1958
1958
v
Divs. Paid
No. Con*

and Financial Chronicle... Thursday, April 23, 1959

Boulder

Volume 189

Number 5840

...

from

Difference Between Listed and

Over-the-Counter
The

market

provides

stock

quick orderly sale

exchange

intricacies

marketing in

it. Genuine

security

C/^

In those
traded

longer trading day in the Over-the-Counter
is often a distinct advantage to the in¬
vestor. On an
exchange, securities can only be

securities

are

sold in New York between the hours of 10:00 and

on an

3:30; in the Midwest between 9:00 and 2:30, and
the West Coast between the hours of 7:00 and

2:30.
ties

However, in most instances unlisted securi¬

in the

When

communicate

can

taneously

through

other facilities at

with

not

instan¬

other

private telegraph wires
disposal:
v-: d \

their

or
/

Thus many over-the-counter dealer-brokers, in
York, for instance, will be doing business

New

throughout the day with other dealer-brokers in
Boston, New Orleans, Chicago, St. Louis, Denver,
Los Angeles, San Francisco, Seattle ' and other
cities from coast to coast. As an integral part of
their operations - dealer-brokers stand' ready to
buy and sell substantial quantities of the securi¬
ties they are "quoting" and maintain inventories
in them. Some firms, of course, choose to act
solely

brokers and not dealers.

It is true that

which

assume

other

might have

dealers

inventory" positions in
It

business

his

in all parts

buying interest in

the

know

of the country
given security.

interest themselves in "making a

market"' for a
given unlisted security. Prospects known to the
first dealer, or known to those other dealers he
often

(either

have

include

locally

individuals

believed

are

buy.
process

sellers

and

of constantly seeking out buyers
characteristic

Counter Market.
A

after
die.

the

Over-the-

•"

negotiation. If

gap

in price exists

prospect is found, the transaction does not

Instead

ence

negotiation ensues. The mere exist¬
buy or sell order is the incentive for

jhe "counter"; dealer to find the-opposite. The
Over-the-Counter Market thus has no physical
limitations.
As

services

dealers

are
obliged to operate
for this is the fact that
over-the-counter dealer, be¬

reason

of the

Some "Counter" dealers sell

directly to inves¬

tors themselves.

In other cases they may have a
following throughout the country consist¬
ing of retail firms that afe always looking for
securities that present good values; to sell to their

dealer

investor clientele.

...

Numerous exchange firms also deal in over-thecounter securities and any that do not must buy

;•

When

security is taken from the Over-theCounter Market and listed on a stock exchange,
over-the-counter dealers ordinarily lose interest
in it, for they cannot make a profit trading in it
at rates comparable to the commission charges
of exchange firms. Though the "counter" dealers'
profit rates may be somewhat higher, they may
afford investors "better" prices than the less
expensive service of exchanges.
a

non-mathematical ele¬

mathematical and

ments.

somewhat

nonetheless real. They con-

Some

insights as to the real value of a
stock may be gained by checking such things as
its earnings and dividend records, book value and
liquidating value. But the first three of these are
tied to the past, and subject to the fact that
accounting is an inexact science. And liquidating
value may be largely of academic' significance,
if the corporation is going to continue in exist¬
ence. The
anticipated future average annual net
income of a corporation may be capitalized nu¬
merically, but not without reference to many
non-numerical concepts. These include the acu¬
men, initiative, imagination and forcefulness of
the officers and directors, of the corporation.
Speculation as to how the present and possible
future products of a corporation will fare on the
markets may be handled numerically only to a
certain extent.

When

individual

consistently purchases
stocks without regard to basic economic values,
he may at times make money, but sooner or later
he will book losses. And although he may remain
"in the market" for an extended period, he can-"
not do so after his capital is exhausted.
v
an

Inventory Positions

So it is with the over-the-counter dealer. If he

habitually

assumes

inventory positions at prices
values, the eco¬

out of line with basic economic

nomic forces will in due time exhaust his
drive him from the

and

must be

which

scene.

capital

For survival he

cognizant of the elements, listed above,
determinants of the real value of the

are

in which he is

securities

taking inventory posi¬
prices cannot consistently be out of
line with real values. Particularly in regard to the
non-numerical elements which go. into the mak¬
ing of the real value of a security in which he is
to assume a position, he must, as a general rule,
have knowledge superior to that of the lay trader.
His

tions.

Therefore,

important contribution of overimportant inventory

the-counter dealers who take

positions results from the fact that their market
pricing must be influenced definitely by intrinsic
corporate value factors. They must stress value,
consciousness over quotation consciousness.
Officers and directors of the

14,000 banks and

the

major insurance companies of the country
when buying or selling their own institution's
stock for their own account do so almost entirely

through

over-the-counter

Investment

dealers.

officers, of these institutions, too, are continually

buying and selling government, municipal and
corporation bonds and stocks through "counter"
dealers for the account of their banks and com¬

panies.

one

premium the public is ordinarily willing to pay
for exchange-listed securities. Then, too, active
listed stocks and the exchange stock ticker sys¬
tem provide a ready vehicle for speculation and
tend to center buying and selling decisions on
short-term price swings in lieu of "real economic
values." Many apparently buy stocks according to
hoped-for price movement and not for true in¬
vestment purposes, their interest being merely
"where is the price going and when."
The

practical matter, though, individuals in
any city of 100,000 or more can frequently pick
up a phone and call a dealer-broker and get an
execution on an order for an unlisted security
momentarily—often while the call is progressing.
f

sist

values may appear
are

basic

Just

major characteristic, too, of the* "counter"

market

important

thing, the basic fact is that the price
of over-the-counter stocks is not swollen by the

The

For

security,
.

exchange commission rates more
lower than the profit rates

are

Values

buying or selling interest :in the instant
or investors who might be induced to

not

in other cities), may
who

economic

...

often than

the

dealers

contacts

frequently necessitating his taking the risk
inventory position, include the extensive
searching for matching bids and offers from
potential buyers and sellers.
of

One, five, ten, fifty or more over-the-counter
in different parts of the country may

Basic

elusive, but they

you

sides

involved.

securities

than

over-the-counter
on.

counter dealer must find contra-orders if he does
to

buys from and sells to

often

competition, the spread between the
bid and the asked figures on more, active stocks
is quite narrow. In less active stocks the over-thewish

Charges

"counter" dealer.

Because of

not

vs.

"as principal" or
on a "net" basis as it is termed in the
parlance
of the securities business. This means his profit
or loss is included in the
price he quotes you and
there is no commission charge shown on his con¬
firmation. The over-the-counter dealer usually
acts just as a merchant does in other lines of busi¬
ness. In other fields when
you buy a set of dining
room furniture, a fountain
pen or what have you,
the merchant sells it to you at a flat price and
does not add any commission thereto. So with the

market for un¬

each

even

exchange-broker executes an order
in an exchange-listed stock, he tells you
price as well as the amount of his com¬
on
your confirmation slip. On the other

mission

listed stocks and bonds. Most of

some

them

Exchange Commission Rates

hand the over-the-counter dealer

quite different. Here there are a tremendous
number of dealer firms from coast to coast that
listed and

the West Coast it's

for you
the cost

On the Over-the-Gounter Market the situation

Counter Dealer

making

time between 9:00 and 5:00

-t

cognizance

take

they

economic values.

Stock

Over-the-Counter Market

interest themselves in

Midwest, and

longer than that. Dealer-brokers in the Over-theCounter Market there are on the job from 7:00 in
the morning until 5:00 in the afternoon.

largely dependent upon his financial, resources
and his willingness to thus risk his. own money.
The

be sold any

can

The continuity of any.market thus created is

quotations on
and handle

The

exchange, it devolves upon the stock
specialist for each particular . stock to create a
market, in the absence of sufficient public orders
to buy or sell, by, in effect ..though not in strict
parlance, putting in an order for his own, account.
In other words, if you wanted to sell lOQ shares
of XYZ stock and the specialist had no order from
anyone else to buy that stock, he himself would
be expected to enter a reasonable bid on his own.
.

above, since his dealer-

Market

P v'Jr'

where less active,

cases

himself with the

any over-the-counter stock or bond,
all details of purchase and sale.

auc¬

tained, however, unless there is sufficient activity
in it.

concern

broker will obtain current market

be: main¬

cannot

enumerated

are

too

unless

poses

exe¬

sold over-thelarge to make a
exchange possible.

are

on an

An investor need not

offerings of potential, purchasers and

sellers for all securities listed
tion

Many listed securities, too,
counter when the blocks

focal point for the .concentration of

and

bids

Trading

because

over-the-counter dealer to

cute customers' orders for unlisted securities.

exchange market is often referred to

auction

sell^to

5i;

(1899)

The Commercial and Financial Chronicle

mere

fact

that

under

the

"exchange

auction-specialist system" the spread between bid
and ask prices is close or narrow is no indication
that the investor gets good value when he buys
or that the seller obtains a price in keeping with
the intrinsic value of the stocks he wishes to sell.

Intelligent investors are quick to recognize the
fact that prices and values are two totally dif¬
ferent things.
As

pointed out before, the assumption of inven¬

over-thecounter dealers' task. They must take the initia¬
tive in assuming such positions. Although they
must be\ aware of and responsive to the foibles
of their customers, they cannot without unwar¬
ranted hazard buy securities for inventory pur¬
tory positions is an integral part of the

and

as you get good or indifferent treatment
values from both large and small stores in

of business,

lines

ether

it is with over-the-

counter dealers. It is not necessary

have

million

dollars

for a firm to
thoroughly trust¬

worthy and to have good judgment with respect
to investment values. Just be sure
counter firm

the over-the-

individual dealer you

contemplate

doing business with has a good reputation.
It is
and

exaggeration to say that both exchanges
the Over-the-Counter Market are vital to our
no

economic life.

Through the medium of stocks

and

bonds, idle capital of individuals, banks, institu¬
tions and the like flows into trade and industry

possible for business to obtain the
provide jobs for ever
more workers at ever less human effort and at
ever more remuneration. Savings thereby become

and makes it

wherewithal with which to

asset to

society and not a problem. The beauty
capital needs of both big and

of it is that the

small business alike can be thus served.
If it

were

not for the

exchanges and Over-theof all types would find

Counter Markets, investors

capital
munici¬
palities or corporations. This is one of the many
reasons why it is socially important that those
engaged in the investment business thrive.

it almost

impossible to quickly retrieve the

they put at the disposal of governments,

The Commercial and Financial Chronicle

(1900)

Continued

between
vestment and savings.

could

Root

Mr.

Iiardly have anticipated the outcome
of the
crisis. Instead of

recognizing that the crisis was
by too much credit, it became
established belief that the
cause
was too -little credit.
The

caused

quality

permits

which

nomic

the

quite
true - that
once
deposits have been manu¬

External
Convertibility in U. S. Gold
But

capital in¬

respondence

The Coming Crisis in
XD29-1933.

general degree of cor¬

upon some

from page 5

demand

acquisition of
conceivable
manipulation can be effective in
undoing the damage. True, redis¬

factured

bank

investment assets, no

eco-

count rates

be raised, reserve

can

human requirements increased, and Fed¬
error in the creation of credit to eral Reserve credit outstanding
be absorbed without serious dam- reduced. But even if these restric¬
age
to general equilibrium, tive steps were politically possible,
Human error is inevitable and the only effect would be that new
even desirable. Human progress is and legitimate commercial trans¬
advanced in a setting in, which actions would be prevented and
the penalty for error is loss and the free exchange of goods and
reward for sound action is profit, services prevented.
Individually bankers may make
consequences

remedy for the evils of overexpansion turned out to be merely
more expansion. The capacity of
the
banking system to expand
credit was again vastly increased, errors in the extension of com- Curing Crises With More Money
In subsequent periods of minor mercial credit but such errors are
It is not surprising that in long
crisis the same essential remedy quickly brought to light and a
and persistent ^inflations the re¬
lias been applied.
banker who makes too many
curring crises seem to be caused
errors
does not long remain a
by too little money and the rem¬
Cites Another Basic Contradiction banker.
edy indicated a still greater infusion
It now seems clear,
in retro,

Impairs Judgments

#qoect, that the organization of the
Federal
Reserve
System
was

The essential point is that the
inconsistent with smooth
functioning • of
a
free
the
maintenance
of
the
gold economic system depends upon
standard. The new banking or- reasonably
accurate
judgments
ganization provided the machinery and that deliberate bank deposit
for a vast expansion of money and inflation makes these judgments
credit, but at the same time the very much more difficult. Esti-i
right
of non
bank
owners
of mates of demand become difficult
money
to demand gold was not because it becomes almost imposeubstantially
abridged.
Without sjblc to determine how much of
doubt the sponsors of the system current demand is based on true

fundamentally

Intended

thing of

operate

some-

balance wheel, expand-

ing credit in periods of reduced
business activity, and applying the
brakes in periods of over-active
it did not turn out

business. But

quite that

World War I made
first attention

way.

it necessary to give
to

of war finance

necessities

the

rather than to the sound develop-

inent of

system of central bank-

ing. At the conclusion of the war
the
ovcrcxpanded
situation
in

and savings and how
is related to monetary ex-

earnings
much

pansion.
The change

credit.

has

always been

so.

In his classic study of fiat money

inflation
White

that

reported
led

were

crisis

recurrent

than

between

our

deposits,

each
of

slight

the

assignats and

mandats' of revolutionary

France

Money
United States

of which Mr. White wrote.
and

credit

the

and in most countries of the world

rest largely on government bonds
the quality of and
investment
type
assets
of
bank credit was undoubtedly recommercial banks; the assignats
lated to the rapidity of the change
and mandats were based allegedly
'm quantity. A bank credit expanon
the
security of government
siori that is supported by or forced
lands, and indeed were given some
by a continued expansion in bank
convertibility into such land. But
reserves by the central bank must,
there was very little conversion.

almost

deteriorate

inevitably,

quality.

banks

Individual

and

recent

outside

Those who had sufficient funds to

has

Congress

certain

the

increasingly

the

years

authorized

expenditures

with
the resulting debt not included in
regular budget

official

the

national

the

total

debt.

difficult

increasingly

has been

in balance. Indeed there
a

national budget is

know when the

great deal of support in Congress
out for a so-called "double

and

budget"

for

ernment

"capital budget."
quite naive belief

national

the

gov¬

individual or

private corporation and that it is
capital

so-called

whether the

immaterial

balanced; it is

budget

only important that the "current
budget" be in balance. Perhaps
this
belief
might
have
some

validity if the unbalanced capital

budget

always absorbed by
the banking

were

and kept out of

savers

and if it were assumed
that this would not serve to shift

system,

equal volume of private capital
expenditures
into
the banking
system. There might even be some
validity in the idea if capital
budgets were unbalanced only in
periods of poor business and over¬
balanced in good years. But the
concept of the cyclical budget ap¬
pears
to have died with John
Maynard Keynes. Altogether the
idea of the capital budget seems
an

probably wished to avoid
bankers had no choice. The inconspicuous wealth; the revolu¬
©griculturc made financial adjust- undation of deposits had to be
tionary
government had
seized
merit
difficult.
The
Fcdera 1 invested if the
banks
were
to
useful
as
a
means
of
these lands from the wealthy, the chiefly
Reserve Board in 1920 did in- remain solvent; if the usual comand
encouraging
nobles,
and
the
Church;
they rationalizing
crease
the
rediscount
rate
and mercial loans were not available,
greater national expenditures.
might be seized again.
take other steps to correct some then there was no alternative but
The
inflationary
spiral
once
of the, excesses of war finance, to expand investment type assets.
in
convert

But this action

under violent

came

political
attack,
especially
by
agricultural interests. In the years
following the continued depreseioii in agriculture as well as a
to

desire
covcry
more

assist

economic

re-

abroad led the Board to
less continuously expand

Federal Reserve credit. The mem-

ber bank expansion of assets and

deposits in the period from
to 1929
cial

not based

was

loans

but

rather

ments and loans

1922

on commer-

Moreover to the individual banker

these assets appeared to be sound
because they were normally shiftBut

all

this

undertaken

expansion

within

the

was

limits

the

gold standard. The owners of
and bank deposits could
convert these assets to gold, and it
was inevitable that at some point
in the credit expansion a preferencefor gold would develop,
money

invest¬

Compounding Past Errors

nf'rtjTnS 11931 -he
The reorganization ol the bankcreased
follow?
system ln" ing structure in 1933 andthe was
1934
follows.
generally based upon
as

prin-

Billions
Boans

securities_______

Boans

real estate

$3.7

This

$18.8

—

out

ca/ta\ 1lndi1ng and

essentially non-liquid bank

expansion of the 1920's
doubt

logical

outcome

rPni

rorrentPrf

and

years has
-passive resistance- standing by and
allowing
the market to tighten itself without taking active steps to
provide
new

Tf
It
was

reserves

,'c
is

wm-fh
v
k

r>mnV»

•

-4.

the quality of this expansion

used tiouble. In

veiy

narrow

reduced

educed

there

.c or Private

ls.someyhat
immediate

publ*c clamor for action that inthe

Board

expansion
of

of credit.

Governors

toLl

Federal'

-educing
credit,
merely
serves

stands

without
Reserve

and

to furnish additional

support

re-

expanding

ief1 fsta,c» and credit structure, it is immediately
? +Uo° fiRfeS
quid denounced for its "tight money
ff1 al
sense that these assets policy." All of this is to say that
•

n2rmal

conditions

are

shiftable. But from the standpoint
of the economy as a whole liquid-

ity should be thought of
•

as
.

that
i*

the

tide

and

relate

the volume of money and credit to

the volume of production or to an
amount

power.

the public is unwilling to accept
the discipline of the market. There
seems to be no
understanding that
a

stable
;

•

econc-my
it

•

dependent
.

•

■

the

examine

order

arguments
consider

those who do not
suspension of gold

likely. The First Na¬
tional City letter referred to pre¬
viously
did
not
consider
the
suspension of payments
to
be
imminent but rather clearly in¬

But it would be an error to look

banking

and

the

political organiza¬

of society.

The roots

of the

inflationary bias are firmly rooted
in political immaturity and eco¬
nomic
illiteracy.
The
delusion
that money based on government
is

bonds

better

somehow

than

minimum

*—but

ply is not excessive
not

does

exceed

expressed
that

seems

even

long

total

wealth

terms.
It
melancholy fact

money
a

democratic

must relearn the ancient

societies

are

not

good currency."
n

■

The

Budget

belief that the problem

inflation would be solved if
how the
anced

national budget

widespread.

some¬

be bal¬

it
that unbalanced national budgets
and inflation have commonly gone
together. True is it that a per¬
True

sistently unbalanced national
budget has usually been the most
significant
source
of
inflation.

re¬

above

requirements gives time
indefinite

not

time—to

re¬

bank

this

did

letter

not

specifically
against
the
probability of ultimate suspension
the arguments were cogently pre¬

argue

sented

will

and

considered

following.
(1)
1958

The
did

down

United
of

outflow

gold

large

not represent

foreign

balances

States but only

drawing
the

balance

payments deficit of the United

States.

This
is

balance
a

result

of payments
of

in¬

imports
relative
to
exports, the continued foreign aid
program, and private foreign loans

crease

investments.

The

that

fa«

especially

the
countries of western Europe have
so
repaired and improved their
productive machinery as to be
able
to
effectively compete in

foreign

world

countries,

markets

nothing

pessimistic about. Indeed
fundamentally
a
hopeful
more

it is
sign;

and better balanced trade is

unbalanced

recent

entirely

possible to have noninflationary unbalanced national
budgets; it is equally possible for

to undertake
would achieve
balance between savings and in¬
be

necessary

monetary action
a

this

Since

vestment.

the gold

most

seems

drain will continue.

(2) Some part of foreign dollar
holdings represent necessary
working balances to meet
the

ments

viewed solely
from the point of view of the
prospect for maintenance of gold
convertibility it is quite another
matter. An important ingredient in
years.

But

current

payment require¬
United States and

prospective

would not be available as a

doubt

the

some

basis

Without
bal¬

gold.

withdrawal

for

foreign

represent working bal¬
withdrawn.
that these necessary working
do

ances

and could not be

ances

But

in relation to
questionable.
United States claims on foreigners
on current account amount to only
about two and one-half billions
balances

large

are

claims

total

seems

and it does not appear that neces¬

balances

working

sary

for¬

eigners in the United States would
be very much larger than this.
Moreover even if these so-called
working balances, whatever their

size,

maintained but the trade

are

there will be a

continued

deficit

continued gold

drain.

(3) In the postwar period there
been previous outflows of

have

gold of substantial magnitude and
these came to an end when it be¬

that rampant in¬
would

apparent

came

flation in the United States

the fourth quar¬
substan¬

not occur. During

ter of 1950 there began a

gold outflow as a reflection,

tial

sharp

of the Korean war
inflationary pressures.
in the

But this movement halted

spring

coinciding

of 1951
lessening

with

inflationary
pressures in the United States and
in particular with the Treasurysome

Federal

"accord."

Reserve

Even

there was very
little
reduction
of
pre-existing
balances. There is no doubt that
foreign
expectations concerning
inflationary
prospects
in
the
here,

however,

United

States

gold

significant

play a

movements and de¬

pending upon economic and politi¬
cal developments there might be
a halt to the gold outflow. But if
inflationary
pressures \ in
the
United States arc chronic rather
temporary then the outflow
start

that

It is not urged
movement is the

the present

again.

beginning of the end of gold pay¬
ments. It is urged, however, that
unless

economic

prevailing

.the

trends

recent

decades

are

ihe maintenance of gold

reversed

But it should not be forgotten that

quence

budget

will
While

sought. This has, in fact,
been
an
important element
in
United States foreign policy in

budgets are a conse¬
well as a cause. It is

to balance the national
would not be enough; it

would

than

dollar."

and

Inflation and the Federal

far

pair policies that hurt trust in the

principle deficit

that "the promises of the sovereign

gold

excess

still

are

serves

the

action is unlikely.

vigorous

role

letter follows:

the

"The fact that

in the

organization
of
system or even in

economic
tion

of inflation

causes

technical

such

was

Merely

and

the

payments

tion

for the

defi¬

payments

balance

apparently,

Arguments Considered

required to maintain a
price level are met with
political frustration. Money man¬ dicated the urgent necessity to
agers who
seek to contract the repair monetary and fiscal policies
volume of credit rather than to that
impair trust in the dollar. The
expand it do not long remain in concluding paragraph of this sec¬
stable

^tot'nfStheLinif vf0i?J:he,stand" refuses
nt of the individual bank, loans
po

involved, either
uSf-:?,-11ldirectly; 7fore,Jre^ *
ustrfp?
-fr*
a+r<*as concerned

.emphasizing that it volves
QUantity that

to be called

nP
"t
i"
l ^ 5 minor crisis
3 thof •
J al^ays
4

hppn

Only occasionally
the Board follow

rarely did
the policy that in recent

come

the

member banks of several hundred

million dollars.

Some

the delusion that the money sup¬

create massive reserves, but it was
ihe policy to rather continuously
reserves

back

issue.

"managers" to

capacity ot the

innw

^ a bank \° expandL rlSerJt?9
n^n°+vf y exPanded. The

excess

hold

money

by ^nks were

Federal Reserve policy during this
period. The central bank did not

maintain

the need for further

Attempts of

"printing
press"
money
seems
persistent. Equally persistent is

with-

was

ex-

convertibility was concerned, although external convertibility at the new rate of $35
per ounce was continued. Limita-

—

Total

internal

1.0

—

gold standard was
abandoned so far as

necessarily

1.8

(commercial)-

for the evils of

The

6.6

Other loans

Miscellaneous

cure

overexpansion

our

pansion.

5.7

Investments

ciple that the

itself. The

greater the volume of irredeem¬
able money and credit the greater
seems

able.

securities and

started tends to feed

this

ciency

unlikely, it is to be expected that

somehow

resemblance
currency and
bank

and

that

fact

involves

insufficiency of currency and the
wickedness of the rich. There Is
more

the

that

result

Attention should also be directed
to

This

that

was

balanced

people

the

believe

to emerge
national budget.

pressures

1959

the relative boom in
If
a
budgetary
deficit
is
not imports which has been influenced
chronic and is absorbed by indi¬ by the fact that costs in the United
vidual savers and savings institu¬ States in important areas of the
tions there need be no expansion economy have become out of line
of money supply. On the other with foreign costs. Unless vigorous
hand if the banking system with steps are taken to slow down or
reserves
supplied by the central halt the price-cost spiral in the
bank, adds to its holdings of loans United States (or a radical reduc¬
and
investments,
a
substantial tion in foreign investment and aid
expansion of money supply can programs) it is to be expected that
occur
even
with
a
balanced this deficit will continue. It is the
national budget.
substance
of
this
analysis that
with

Andrew

France,

inflationary

.Thursday, April 23,

convertibility

impossible.

(4) Inflationary pressures in the
United States are weaker than in

This is
but- not alto¬
gether relevant. A decision as to
maintaining balances in' another
country is not governed solely by
many

relative

long

countries.

foreign

undeniably

true

inflationary pressures so

there is

drawal in gold.
central

bank

ridden

country

option of with¬

Suppose that the
an
inflation-

hold

States

deposits in

and

that there

the

United

are

serious but lesser inflationary

in the United States.
Quite reasonably the central bank
the
inflation-ridden
country
pressures

might prefer gold to dollars even
if

its

were

own

very

inflationary

pressures

much more difficult

(5) While the United States is a
at
short - term
it
is a

debtor

creditor
This

all

relevant.

long-term

account.

quite true but hardly
United

States

invest-

(1901)

Number 5840... The Commercial and Financial Chronicle

Volume 189

/
properties around the world, canbe
offset *: against. foreign
short-term claims in-the United
States.' These long-term
investments
are
largely private and
often a part of integrated international enterprises and are most
unlikely to be liquidated But even
if
they
were
liquidated
the
resulting
balances
in
foreign
funds would be subject to restric-

tions and in any event

would not

offset against foreign short-

claims

against the United
States. It is, after all, the United
States that presently stands ready
to
convert
foreign
short-term
claims into gold. Gold convertibility is not reciprocal.

term

of gold. It. was also probably

Bankers

Association

held

Over 300

their

24th

annual

convention

in attendance at this very

were

much

$35

the

successful

meeting.

area.

...

MINNEAPOLIS, Minn.—Paine*
Webber, Jackson & Curtis an¬
nounced (Monday, April 20) an
outside installation of

any

tion the

present te:""J118 he between
!e United States dollar and Sold
an anachronism. The gold

possible alternatives seem

to be the

Summary and Conclusions

effort to anticipate the
a given set of forces
it is useful to review the possible
alternatives. In the present situaIn

outcome

device, at least it is a useful device
in a peaceful world with relatively

following:

To raise the price of gold. few barriers to trade and cornIt is well known that there is a merce. But it is not adapted to a
terrific clamor for an increase in world of hot or cold wars and

B. Franklin Houston

politically

such

would, almost at the
stroke of a pen, substantially increase
gold holdings in dollar
terms.
To foreign and
domestic

sential is that

gold mining interests this appears

action

the obvious

dominated
monetary
and credit management. It is plain
that economic problems will not
be solved by a return to the
simple gold standard. What is es-

is not

the nineteenth century learned
observe

the

standard.

rules

the

did,

gold

some

In
infla¬
should be

miracle, return to the gold stand¬
ard it would be necessary to live

tionary

action

1960

were:

Chairman—B. Franklin Houston,

Dallas Union Securities Co.,
!•. %
V
:

nation, according to James Davant,
resident partner of the Minneapo¬
lis office of Paine, Webber, Jack-*
son«& Curtis.
It is outside th0

Frank R. Newton, Lentz, NeWton &

firm's ground floor offices in the

First Vice-Chairman; Russell R. Rowles, Rowles,

Co., Houston. \.VV,.,V-

Second Vice-Chairman:

..'/*/;>;•/./*

Pillsbury Building,

v.»./

Secretary and Treasurer; Lewis F. Lyne, Mercantile National

Bank, Dallas.

!>*-)

■

:/' ;

■'

•

--V"

•

Committeemen:

Wipiam*' A.' Beinhorn, Jr., Russ & Company,
Inc., San Antonio; John-Turner, Eppler, Guerin & Turner, Inc.,
Dallas; John Jay Fosdick, Eddleman-Pollok Co., Houston; John
C. Henderson, M. E. Allison & Co., Inc., San Antonio (ex-officio);
William C. Porter, Dittmar & Co., Inc., San Antonio (ex-officio),
and Charles C. Pierce, Rauscher, Pierce & Co., Inc., Dallas (exofficio).
"' 1
" !
The

would

than

overtones.
be

such

that

once

appears.

inflationary

things that have been
being done—but it
would ; be
so
obviously
inflationary. Dominant political forces
many

done

are

United

the

always

understood

quences

monetary

action but it is

ful

not

have

States

the
and

conse-

fiscal

than doubt-

important segment of
either political party has deliberOtely or knowingly, sought inflation or would wish to be identified
any

the rules of such

gold

standard

simply a social
device
by which men place a
voluntary but automatic brake on
monetary and credit expansion,
But

under

amount

absurd

present
of

believe

Nationwide

Syndicate Offers
N. Y. State Power Authority Revenue Bonds

Group headed by Dillon, Read & Co., Inc.; Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co.; and W. H. Morton & Co., Inc.
offering constitutes new step in financing of $720,000,000
Niagara Hydro-Electric Project.

the

in any way

restrains credit policy. It is quite
true that the law fixes a minimum

gold

certificate

ment

for

reserve

require-

Federal

the

Reserve

nationwide

about

358

syndicate
of funds, in
banking counsel.

opinion

the

bond

investment

obviously inflationary. Moreover,
since the

could believe that public spending

firms, managed by Dillon, Read &
Among those associated with
Uo. *nc,» Halsey, Stuart & Co. Dillon, Read & Co. Inc.; Halsey,
Inc-5 Kuhn, Loeb & Co., and W. Stuart & Co. Inc.; Kuhn, Loeb &
H. Morton & Co. Incorporated, has Co., and W. H. Morton & Co. In-

producer,
such
an
be, in effect, a
gigantic
'^give
away"' program
benefitting the gold producing

private credit expansion is in
way
restrained by a gold
reserve
ratio
at
any
particular

for sale April 21 an issue corporated in the offering are:
$200,000,000 Power Authority
Morgan Stanley & Co.; Blyth &
State of New York general Co., Inc.; Drexel & Co.; Eastman

action

large

and

clearly

United States

not

gold

action

would

and

any

revenue bonds, series F.

Dillon, Union Securities & Co.;
L^i
11
The issue consists of $160,000,- The First Boston Corporation:
that, except sporadically, there 000 of 4.20% term bonds, due Jan. Glore, Forgan & Co.; Goldman,
will be a reversal of inflationary 1, 2006, which are priced at 100%; Sachs & Co.; Harriman Ripley &

would

pressures

South

those

operate

countries

fraud

upon

have

kept

that

deposits in the United States.
■

decisive

and

inflationary action

»t

ni ntn-i'

/t.

AAfl

C1 1

D ap!

ai* n At* o

bonds is the second .public _offer-

Hut soon or late,

ing

the

national

budget although merely
balancing the budget would not be
enough. It would be necessary to
interminable

of
monetization of private and local
government debt, with the objective of achieving a real balance
process

petween ^avmgs and investment.

The Federal Intermediate Credit

An •

on April 21 a new
approximately $180 mil¬

issue

lion

4Vr%

the new issue is being offered
through John T.
Knox, Fiscal
Agent and a nationwide selling
group of securities dealers.
also

was

monetary,
modes
not

fiscal,

of several

Federal

and

political

decades

expected.

Reserve

and

Indeed

System

the

appears

suspension

The sale of the series F revenue 1*
m

When

evitable. When it comes it wiil ing of annroximatelv $720,000,000
it will, ine of approximately $720,000,000
without doubt, be something of a required to complete the Power
Authority's Niagara Project now
shock to confidence. But it will under construction. The
Niagara
really represent a change of
it

fund

$117,000,000

can

of credit.

William T. Glidden
v*

The

Niagara

Project Power

continue,

Midwest Exch. Member
CHICAGO, 111.—The Executive

OilliJ

111

ItiAUIIctngt;.

XVlUliaiU

x\..

Widing, 120 South La Salle Street,
s
Chicago 3, tii
111.

Inv. Service Branch

$335,000,000 Saint Lawrence Project, and the two together, when
completed, will form one of the

of the power to be generated by
the Niagara Project through contracts with private utility com-

AjcIWICIICC

nujctl

licailllg

WUIll-

pletion, and the Niagara Project
ic
cy>hnriiiiah
fnr
is scheduled for AAmniption
completion hv
by
June 30, 1963.
The

tion of Gerald O. Essendrop.

NewtRanson Branch

KANSAS CITY, Mo.—Ranson &

Company,
branch

Inc.,

office

has,
612

opened
West

47th

Street, under the management of
Gene Rourke.
A Free Gold Market

ownership and trading
in gold has been suspended in the
Private

United States since 1933. This action

was

undertaken in

order to

appropriate to the national gov-.
ernment the "profit" in the mark-

Gibbs & Co. Adds
WORCESTER,

„

IVIUIIUWIV

C I

bonds

are

„

The present trustees of the
Authority
are:
Robert
Moses,
Chairman; William Wilson, ViceChairman, and Charles Poletti, A.
Thorne Hills and Finla G. Craw¬
ford.

eral

of the

KANSAS
Ott

has

CITY, Mo.—Jason V.
connected with

become

Hutton

111

Company,

West 10th Street.

With Reinholdt Gardner
(Special to The Financial Chronicle)

ST.

LOUIS, Mo.—John P. Krausq
connected with Reinholdt

now

400 Locust Street,
the New York and

Gardner,
of

f vuLnnrmc

pieviously

^JE*

with

ihp

the

...nn

MprcanHln

Me ca lti e

Trust Company.

Joins Yates, Heitner
{Special to The Financial Chronicle)

otherwise allocated.

York

contract

(extending to June

ST.

Gant has joined
Heitner

and

changes.

Stock

Ex-

formerly

with

Midwest

was

Stowers & Co.

and

Authority.

distribution

Saint

Law¬

Project power provides that
The bonds are exempt as to in- Niagara Mohawk will take and
terest from Federal income taxes pay for all firm and interruptible
With Jay C. Roberts
(Special to The Financial Chronicle)
and New York State income tax, power and energy not used by the
SPRINGFIELD, Mass.— Stella and are legal investments under Authority's other customers. The
E. Smith has joined the staff of New York law for insurance com- corporation has indicated its inJay C. Rbberts & Co., Third Na- panies, banks and trust companies, terest in a similar contract covertional Bank Building.
;
savings banks and certain trust ing Niagara Project power.
Such
,

St.

LOUIS, Mo. — Dorsett H.
the staff of Yates,
& Woods, Paul Brown
Building, members of the New

Niagara Mohawk

30, 1985) entered into between
the Authority and Niagara MoChapin is Gen¬
hawk for the sale, transmission
Manager and Chief Engineer
William

Charles

has indicated its interest in purchasing any excess power not

Project power.

ity's official statement.

—

Joins E. F. Hutton

VUipviawuu,

Rochester Gas and Electric Cornnrntinn
poration, anh now Vork State
and New York State
Electric & Gas Corporation are

Mass.

Collins h&s been added to the

(Special to The Financial Chronicle)

Authority presently antici¬
that it will dispose of all

pates

they appear likely to do, at
some-point there will be no alter¬
native to suspension.

i\ /r

(Special to Tun Financial Chronicle)

E.
Sale

Project will be physically inter¬
connected
with
the
Authority's

fhrection,

Monument Street under the direc¬

(3) To suspend gold payments.
If inflationary pressures

deben¬

William T. Glidden, Jr., partner
j-Q Townsend, Dabney & Tyson,
Boston, passed a way on March 28.

Barney & l,o., bione &

only "lean against the wind"

pelled to expand credit.

tures maturing May 4, 1959.

Webster Securities Corporation;

B. J. VanCO.
Ingen & Co. Inc.; White.
Weld &

1, and Nov. 2, 1959 was sold for
delivery May 4.
Proceeds from
the financing will be used to re¬

rated; U W. PressprichCo,

overall financing pro- ^^tn,

gold payments appears to be in- gram which will involve the rais-

bmim in torpo

subject to re- the three private utilities serving
COLORADO SPRINGS, Colo.— demption, as a whole or in part, the Niagara market area m upat any time on or after Jan. 1, state New York and all three have
in boom times, but in periods of Investment Service Company has
1970, as set forth in the Author- requested an allocation of Niagara
even slight
recession it is com- opened a branch office at 214 East
to have lost control

that

announced

total of $24,500,000 of outstanding
debentures maturing Sept. 1, Oct.

members
....

deben¬

par,

&
.

nine-month

dated May 4, 1959 and
maturing Feb. 1, 1960. Priced at

tures,

staff of Gibbs & Co., 507 Main

action does not appear probable

FIB Banks Offer Debs.

some

balancing

hour.

and $40,000,000 of serial bonds, Co. Incorporated; Kidder, Peamaturing on each Jan. 1 from body & Co.; Ladenburg, Thai1965 to 1979> which are priced to mann & Co.; Lazard Freres & Co.;

even

real

Jones

Dow

in the United States, it
some point, foreign
holders of dollars will prefer gold

follows that at

yield 3% to 3 80% to maturity.

Thi«s would necessarilv

the

tc paper. Gold holdings are still
substantial and any immediate

involve

halt

most unlikely

appears

anti-

social e*wt
a

Since it

nositive

(2) To begin speedily to under-

take

level.

the

alternates

instead
of the usual
time-and-temperature combina¬
tion, Mr. Davant said. The aver¬
ages will be changed every half

world, principally
Africa, Canada,, and quite
possibly Russia. In addition it

countries of the

changes

corner*

four

averages,

Banks,
but
this
ratio
can
be
lowered, and indeed has been
lowered.
Only the very
naive

with

time

Banks offered

the Treasury

States

all

The

directions.
with

12 feet high,

that its two iaeesh

from

visible

Texas

Group has also announced that its 25th annual
meeting will be held at the Sheraton Dallas Hotel in Dallas,
April 6-8, 1960.

that

arrangements

gold

the United

and situated
are

standard.

twin-clock

Winston &

Inc., Dallas. \f"'/

Co., San Antonio.

sign which alternately flashes
changes in the Dow Jones aver¬
ages, barometer of stock market
activity.
The sign is the first of its kind
to be installed anywhere in the

It should be remembered that the

the first place it has obvious

said

simple

maturity and learn to observe the
prudent rules of managed monev

But it

answer.

attain economic

Lewis F. Lytic

New officers elected for

(1)

the; price of gold, and at1 least to
the unsophisticated there seems to
pe a plausible case to be made for
this action. The price of gold has
remained unchanged since 1934;

•

Special Clock in
Minneapolis

VI
0

Paine, Webber Installs

IV
What Are the Alternatives?

and

produced by the.|Niagara
Project for a period of at least 25
Shears and would provide a prac¬
tical means of meeting the power
requirements of the municipal¬
ities and rural cooperatives in the
Authority's
New
York
market

ounce.

firm

power

energy

ANTONIO, Tex.—The Texas Group of the Investment

Hilton Hotel.

assure

market for all of the

market price of gold would

open

SAN

contract' would

Texas Croup IBA Holds Annual Meeting
Elects Officers for 1960

considered to be undesirable to
permit price quotations for gold
since this would be something of
a measure of the progress of inflation. Also private gold hoards
would hinder monetary manageinent. But if external convertibility were to end, the monetary
system would not be even re¬
motely tied to gold, and there
would be no reason to prohibit
private ownership and trading in
gold. But if this last vestigal tie
of the monetary system to gold
were to be ended and U. S. Treasury purchases of gold stopped, it
is by no means clear that the

hot

rence

Waltpn With Goodbody
(Special to The Financlal Chronicle)

CLEVELAND,
,

Ohio—C. James
.

Walton has become associated
with Goodbody^ & Co., IN ational
City East Sixth Building. _Mr»
Walton was formerly with wn*.
J. Mericka & Co., inc. and Bacne
& Co.

The Commercial and Financial Chronicle

(1902)

expected that the persist¬
a
rising price level will
give rise to increased demands for

National

Economic Policy
output

though

measured

dollars

by
only

was

slightly higher. But we must recJ^ognize that the persistent rise in
labor costs
per
unit of output,
which are about three-fifths
of
total

constitutes

costs,

haustive

remind

but

that

priceraising institutional arrangements
do exist and are quite pervasive.
numerous

Ill

most

the

list

ourselves

following the downturn
beginning in 1957, average hourly
earnings (after allowing for the
year

Changing Our Attitude

overtime

reduced

effects

shifts)

inter-industry

and

increased

price level of

2 or 3%

some

per

year? For that matter once it be¬
understood that public pol¬

comes

icy is willing to settle for a rise
in the price level of not over 2
or
3% per year, can the rise be

during a year
held to 2 or 3%?
primarily characterized by de¬
It is, I think, quite unrealistic
clining business activity it was
mot possible to limit the rise in to assume that the problems of
wage rates to the long-run rise creeping inflation
would be re¬
in productivity.
solved if only we were explicitly
We must
also recognize that and officially willing to accept a
4%%. Thus

even

there are certain institutional ar¬

rangements in both the public and
private sectors of the economy
exert

that

upward

pressures

level. In the public
sphere we shall spend an esti¬
mated $5.4 billion this fiscal year
on programs
to sustain farm in¬
comes and prices, and which also
have the effect of keeping the cost
the

price

living high.
Recent manda¬
tory euros on oil imports will un¬
doubtedly carry (with them some
effects on domestic prices. In nu¬
of

other

merous

Federal

cases

pro¬

however justifiable their
primary objectives may be, un¬
deniably have the effect of ex¬
erting substantial upward pres¬
sures
on
many costs and prices.
These price-cost raising institu¬
tional arrangements also exist in
grams,

the

private sectors of the

For

example,

economy.

procedures

which wages and prices are auto¬

matically adjusted as the
price index changes

mer

themselves

fact

tionary.
course,

somewhat

the

exist

adjustments
times when

price

infla¬

in¬

proce¬

automatic

not. But there

rise in the

index

higher

up¬

formal

for
or

move

living

cost

whether

creases,

dures

Broadly speaking, of
it is to be expected that

incomes would tend to
ward

consu¬
are,

does

not

are

consumer

warrant

and
salary rates.
There is a clear seasonality
in
important components of the con¬
wage

price index—e.g., food and
transportation. The food compo¬
nent can be importantly
influ¬
enced by changes in supply con¬
ditions, as was clearly true a year
ago, and there is no theoretical
basis for automatically adjusting
incomes
upward
because
of
sumer

changes
these
in
an

some

items

increased

comes

for

the price level for
Moreover, increases

reasons.

come

estate

rather

should

charge
than

constitute

against in¬
justification

upward adjustment of in¬

rates. Sales,

taxes

excise, and real

really

represent

device by which we, in effect so¬
cialize a certain amount of our
incomes in

selves

with

better

order to provide

certain
be

services

that

done

Escalators which adjust certain
incomes
upward
because
these
taxes increase become

which

certain

device by

income

recipients
avoid bearing their share of the
cost of services which are to be

enjoyed in common. Thereby the
Whole cost of these increased ser¬
vices is thrown on those whose in¬
comes do not automatically rise.
The purpose of these few com¬
ments is not to prbvide an ex¬

3%. per year

in the
price level. Resolved, that is, for
or

reasonably long period of time.
No
one
is
insisting that there
a

would

price level in
2

1959

rise

were

the

The American economy

3%.

disaster

business for

going to be in

long time to

The problem
we
confront is very much
more
fundamental than getting as much
output and employment this year
as
possible.
Rather the problem
in

1959

the

come.

begin to strengthen

internal

resistance

the

can

inflation so that it
achieve a more rapid and at

the

same

economy

tainable

time

orderly

rate

and

sus¬

expansion.

It is

also

the

have

effect

transmitting their cumulative ef¬
fects moi-e widely and promptly
throughout the economy and thus
augmenting upward pressures on
wages and prices.
It is difficult
to judge whether this cumulative
effect would accelerate, or how
long it might run before becom¬
ing a significantly disorganizing
influence in the economy. That
the

result

this

toward

quite

For

thing,

it is not at all
certain
that we could
keep the
rise in the price level to an an¬
nual average of 2 or 3% once it
one

became

known

that

this

was

target of public policy. The

over-reaching

the

that now
give us 2 or 3% per year when
we
strive folr our
target
of a
stable dollar would, unless

thing

done,

almost

some¬

certainly

still give us something more than
our

target

come

per

rising trend

The

year.

are

if that

even

American

people

informed

well

very

to be¬

were

about

these matters. The preliminary re¬
lease

the

current
nances

Federal

survey

shows

Reserve's

consumer

fi¬

marked jump

very

in the proportion

expecting rising
prices and a drop expecting fall¬
ing prices.
In early
1959, 61%
expected prices to rise, a figure
exceeded

recent

that this would pose

concern

and

informed

about

clearly

the institutions

vise

requires

the

and

in¬

struments to

promote and channel
savings
in
an
orderly
manner
even
in an economy where there
was
the general expectation that
the

value

cut

half

century

the

dollar

would

quarter of a
Whether this could

or so.

seen.

Clearly these instruments and in¬
stitutions do not

now exist, and a
and difficult process of ad¬
justment would be required to
adapt present major thrift insti¬

long

tutions to operate in that kind of
world. If these institutions were
undertake

the

assure

pur¬

power of the savings com¬
mitted to them, there would have

chasing
to

also.

escalation

their

Would home buyers,

assets
or cor¬

increasingly necessary contribute
to the stability and vitality of the
economy?
that

It is by

these

acting to

tect

themselves
hazards.

against

pro¬

these

clear

no means

questions

can

an¬

swered in the affirmative.

My third reservation about the

other costs

are

often considered to

nation

with

the

ne¬

The wages of
that

are

make

over

four million

governed by contracts
formal

provision

for

adjustments as the pjrice level
changes. Through the Teachers
Insurance

and

Annuity Associa¬
tion participants are now
making
provision for up to half of their
retirement income through a fund
invested in equities, a program

quite explicity aimed to hedge
against inflation. Numerous other
contracts

call

for

escalator

visions, and proposals have
made

for still others

items

ranging from

charges to bonds.

pro¬

been

apply to
depreciation

is, of

course,

this

the

J of

Government. 'that

-inevitably- Serve ' to
its will to take other

would

actions

this

achieve

end.

And

it would constitute some reassur¬
a public whose uneasiness
price-level prospects con¬

about

stitutes.

part of our problem. 1

Second,
mental

need

reforms

funda¬
budgeting

some
our

procedures. Those who have been
about the budget

problem would do well to direct
their energies toward mashalling
for these reforms rather
than, as is too often the case/dis¬
sipating these energies in frenetic
support

denunciations

bureaucratic

profligacy. While, as I indicated
earlier, I do not believe budget
developments were a major factor

have

price rise of the last three
our
budget process does

unnecessary

bias toward

activity,

For

ments

swings

substantial

business

commercial

value

from

any

get more

given amount of

One reform calls for

..giving the

President the power of. item veto.

Clearly the present all-or-nothing
arrangement constitutes an open
invitation to load

bills for other¬

and

bias toward

larger aggre¬
gate budget. The President also
suggested that the Congress con¬
a

upswing is almost in¬
evitably
provided
during
the
recession and early stages of re¬
covery. As the momentum of the
expansion develops, however, a
bind

is almost certain to

between

develop

cost level that is

mov¬

ing relentlessly upward, or mov¬
ing upward more rapidly than the
price level, and fiscal and mone¬
tary policies that are endeavoring
to

contain

these

price

pressures.

The

resulting slowed rate of real
growth and lowered profitability
of
additional
business
provides
the

its

specific

raw

material for

program

has merit

does not automatically

own

a place in the budget.
If there is such a thing as a disci¬

pline of economics, it must follow

dur¬

subsequent

recession. This process was
clearly
evident in the recession of 1957-

this

continues

greater

need

visibility

problem

much

and

fur¬

The will of busi¬

ther ventilation.
to resist

creeping costs must
be strengthened. An informed and

nesses

concerned public opinion itself can

play

significant

words
year

the

role.

President

the

about

ago:

"The

American

people believe
in private and

in good wages, both

public

employment.
effort and

reward
But the

ders of those

price decisions
stable

mean

wages

the shoul¬

over

sitting at

gaining table to
wage
settlement
a

Good

build markets;

American people are go¬

ing to be looking

whether

see

the

and

subsequent
consistent with

are

dollar,

bar¬

every

whether

they

another dismal sequence

ever-rising costs and prices."
The

much.

projects

Therefore,

projects

must

remains

true

big budgets

will

too

"good"

some

omitted.

whether

which

This
favor

little budgets.

The

be conceded that

yet

direction

enlarged aggre¬
gate spending. We need the dis¬
cipline in the Congress as well as
in the White House of taking re¬
sponsibility for a total, as well as
being arrayed on the side of the
angels on each specific proposal.

Third, the Committees recently
set up by the President will, I
think, be able to strengthen the
bases for
The

work" of

mittee

stable price level.
Cabinet Com¬

the

Price Stability for Eco¬

nomic

Growth, under the Chair¬
manship of the Vice-President,
1 Cf.

Chronicle, Jan. 8, 1959,

12.

from

answers

ion

are,

were

But

still very

are

knowing what the
even if public opin¬

clearly making prog¬
we

answers

the

eschew

the

nothing

can

problem,

may.

It must

prepared to accept them.

are

And

ress.

shall

find

fatalism

these

quickly if

that

done

we
says

about

the

the ostrich-like atti¬

tude that endeavors to

avoid

see¬

ing the problem at all.
How much will be required to
;

assure

reasonable

price level?
know.

can

lined

stability of the

one

at this point

Clearly the

above

would

out¬

ones

constitute

major step forward, and this would
itself
be
enormously reassuring.
One
thing is increasingly clear.
The alternative to

candid

and

a more

assault

vigorous

this

prob¬

lem, in addition to those inequities
produced by a rising price level
that

they

are

none

the less real because

difficult to quantify, is an
unacceptable combination of un¬
are

necessarily under-utilized produc¬
tive resources, recurring cyclical
unemployment, and more deliber¬
ate and widespread business and
personal planning for a deterio¬
rating value of the dollar.

present each-at-a-time procedure,
therefore, has a built-in bias in
the

constructive solutions

found, is encouraging.

far

aggregate expenditure.-:;

that the aggregate of individually

banks

economy that have the effect
driving up unit labor costs;
Though progress has been made;
ern

meritorious

are

in the mod¬

because the nation would

occur.

example, loans and invest¬

most intractable

pressures

greater attention being
given by academic economists to
this problem, and to lines along

part of

expansion

ing 1958 increased 8M>%. In short,
the liquidity essential to
carry the
economy fairly far along the path

to grips,

come

spending,. and this can
our price level prob¬
Moreover, these
reforms are desirable quite simply
Enlarged

lem in the future.

qualify it for

relatively

neces¬

whose

are

must

these the

much concerned

years,

determine
are

candid and realistic

a more

the strong

strengthen

that

revenues

Fourth,

minimum

it would constitute a public com¬

the

"to

occur

mation."

any

action would

value.

mitment

examine price changes

may

whether such increases

re¬

have

would

influence

that such

recession,
with
the
large
budget and with a tax structure
any

lization to
that

ance

way,
On the other hand, it
be equally unrealistic to with the problem of creeping costs.

assume

have

tariffs

fice of Civilian and Defense Mobi¬

our

cessity of accepting secularly an
unnecessarily
large
volume
of sider procedures by which it
unemployment if we try to ad¬ would pass on the total prospec¬
here to a stable price level.
It tive budget as well as on each
seems to me that the
problem is specific item. Recently, Mr. Bruna bit more complex. This
process dage,1
former Budget Director,
will also aggravate the problem of made
some
concrete
proposals
cyclical
unemployment.
During along these lines. Clearly the fact

of the next

people

and

and quotas,
important sidecosts and
prices generally. It was hearten¬
ing to see, for example, that the
President's
recent
proclamation
imposing quotas on oil imports
calls upon the director of the Of¬

Act

therapeutic values of embracing wise essential appropriations with
creeping inflation is that it would money for programs that cannot
aggravate the problem of cyclical stand on their own merits. The
instability. The presently strong result is expenditure of funds that
upward pressures on wages and could better be used elsewhere,
confront the

riculture

have exerted very
'effect influences

problem.

every

be done would remain to be

price

movements and prospects has also
been reflected in other
surveys.
And consumers are

person,
that mere

amendment

be¬

of course, be¬ sary to accomplish the national
passing of such security objectives of the procla¬

sponsible
lieves

well

programs of Government,
ranging from procurement to ag¬

the general

economic policy.

national

Affecting

may

merous

include

objective of

as one

would

growth

of bank credit tends to

keen

awareness

amended

nomic

smoothly functioning capital mar¬
kets to encourage and facilitate
saving and to channel these sav¬
ings into the f i nancing
of
capital formation. It may well be
that the capital markets could de¬

flict.

This

employment

the
be

necromantic

sensitive

public

First,

Activities

Costs,

permanent and quite im¬

piece
of
Governmental
machinery.
Unquestionably nu¬

clear.

increasingly in¬
tractable problems for the capital
markets.
Orderly and rapid eco¬

only in
early 1951 during the Korean con¬
years

policy is to set about to strengthen
the economy's resistance .to infla¬
tion in order to lay the basis for
a more
stable, orderly, and rapid
rate
of
economic
progress than
will
otherwise be possible.
The
need
for certain
steps is quite

should

and
a

portant

If this appraisal is reasonably
realistic, then the. task of public

price level

same

processes

Steps

Proposes Certain

My second reservation about the
efficacy of dealing with creeping
inflation by accepting it arises out
a

Government
come

reasonable stability of

clearly these problems and their
policy needs. The Saul^
nier Committee, the Committee on
related

Prices

clear.

substantial

should help both Government and
the country generally see more

ineluctably

would

process

move

1958, and I see no reason for ex¬
pecting that this problem could
be avoided by establishing a nciw
par of a slowly rising price level,
when
it
became
generally ac¬
cepted that this was the new par.

increasingly clear that a policy of porations, or school districts be
willingness explicitly to accept willing to obligate themselves to
creeping inflation as an objective pay back an amount equal to the
of national economic policy would
purchasing power equivalent of
put
vigorous and orderly eco¬ what they borrowed? And would
nomic growth in jeopardy.
a
situation in which this became

our¬

collectively
through government than individ¬
ually.
can

rise

protection from its adverse effects.
Yet these arrangements, by pro¬
viding for increasingly widespread
upward adjustments in incomes
and
the dollar value
of assets,
would

important and most troublesome
If it is true that we do not at
aspect of tills cost problem. For
present have the basis for a rea¬
manufacturing, employee compen¬
sonably stable price level, does
sation per unit of output in 1957
that fact make any difference?
was 9% higher than in
1955 and
Can we over the long pull main¬
10% above those of 1953. At the
tain
an
orderly economy
even
same
time corporate profits per
though it becomes generally un¬
unit of output in 1957 were 10%
derstood
that
public
policy is
below those of 1955 and 4% be¬
willing to settle for a rise in the
low those of 1953. Moreover, in
the

ence

Reflections

GNP in constant

Continued jrom page

Thursday, April 23, 1959

...

Nathan Crain Opens
WANTAGH,
Crain

conducting

—

Nathan

securities
business from offices at 1512 Holi¬
a

day Park Drive.

R. C. Crisler

Opens

CINCINNATI, Ohio—R. C. Cris¬
ler

Co., Inc., is engaging

securities business from offices in
the
Fifth Third
Bank

Building.
Officers are Richard C, Crisler,
President; Paul E. Wagner, and
Stanley S. Straus, Vice-Presidents;
David G. Gamble, Secretary; and
Janet M. Huber, Assistant Treas¬
urer.

Number 5840... The Commercial and Financial Chronicle

Volume 189

Wm. P.

Robert J. Lewis

Charles B. Harding

Worthington

better understanding

lishing

of the

role" which capital plays in

creating'jobs and making the United States prosperous.
Worthington, in accepting the invitation to serve as Gea-

Mr.

that the Constitution's guarantee of free enterbeen,the major factor in the economic and political
growth of the United States. He noted, that the freedom to save and
to invest through bank accounts," insurance, real estate, government and corporate bonds, and stocks is. enjoyed by all Americans.
eral Chairman, said

■

•

prise

•

;
*

;
.v

has

During Invest-in ^America Week, .there will be several special
designed to stress the importance, of investment and what
it means to America., The program is being sponsored by associations representing all forms of enterprise. They include:
,

events

The Institute of Life Insurance,
*

Young Men's Board of Trade, the

1 New York Board of Trade, the

Electric Institute,

Edison

;

the National Association of Investment

Companies, the Association of Stock Exchange Firms, the
ment Bankers Association/the New York Stock Exchange,
American Stock Exchange. ; ; * " ; '
/ '
Members of the New York

•

addition

Barney

Vice-Chairman, Charles B.
Financial Chairman, Robert J.

are:

Co.;

Lewis, Estabrook & Co.; Treasurer,

A.' Halsey Cook, Vice-Presi-

dent, First National City Bank of New York.
Other committees are the Policy
Aetna

Life Insurance Co;.;

Committee: Ashby E. Bladen,

Gen; Lucius D. Clay, Continental Can

Life Insurance Co.; G. Keith
Glickman

Co., Inc.; James P. Fordyce, Manhattan

Investand the

City Invest-in-America Committee,

Worthington,

Mr.

Smith,

Harding,
'

the Savings Banks Association

York, the Rfeal Estate Board of New York, the

of the State of New

Funston,.New York Stock Exchange; Louis J. Glickman,
/ Corporation; Floyd W. Jefferson,
v

T. McCormick,

Iselin-Jefferson Co., Inc.; Edward

American Stock Exchange; Don G. Mitchell, Gen-

•.

eral Telephone & Electronics Corp.; Lee

Title

Thompson Smith, Home
Bank of Sav¬

Guaranty Co.; Edmund F. Wagner,. Seaman's

ings;: Charles E. Wilson; William P. Wright, Jr., J. Walter Thomp! son Co.; and William Zepkendorf, Sr., Webb & Knapp, Inc.
Executive Committee: R. Michael Charters, Association of
'

Stock Exchange Firms;

Life

change;

tion

Ruddick C. Lawrence; New York Stock Ex-

Insurance;

McKeown,

Frank E.

Investment

Real Estate. Board

Companies;

Dealers'

John

Digest;

Wickliffe

Shreve,

Sheehan,

Hayden,

Stone

Edison Electric Institute; and

Savings Bank

E. Henry Powell,

Association of the State of New York;

of New York;

United Airlines; Harold Oberg, National Associa-

I Walter H. Neff,
c

Robert Foster, Dean Witter & Company;

B)y-th & Co.; Inc.; Holgar J. Johnson, Institute

Edward Glassmeyer,

Eliot H. Sharp, Investment

American

Company;

Exchange;

Stock

Edwin Vennard,

Robert T. Walsh, New York Board

of Trade.

•

"Wherever and in whatever manner we celebrate
the

anniversary of Austria's rescue from economic

collapse,

for

means

should be mindful of the fact that the

our

reconstruction

the American taxpayer
conceived generous

America's•-

man

were

contributed by

in pursuance of

broadly

plan of his government. To him,
the

street,^Austria

^ owes

its

thanks."—Chancellor Julius Raab of Austria.
"It is to the historic credit of the United States
to have

recognized the vital importance of creating

healthy, economic conditions as an essential pre¬
requisite for

lasting peace."^—Austrian Govern¬

ment Statement./
It is

refreshing in these times to hear

thanks for aid granted to

It, of
whether
well

course,

apparent

word of

remains for the future to disclose

"healthy economic conditions"

temporary.

foreign nations.

and

permanent

are

real

rather

than

(1903)

The Commercial and Financial Chronicle...

(1904)

Continued

is, of

Current S.E.C.

that we did not ex¬ Continued
increase to reach the
proportions of the veritable ava¬
lanche of new issues which has

Legislative

course,

pect

from page 55

the

descended oh

with

submission

the

stockholders

the

plan

included

registration
unnecessary
in the
case
of subsequent
transactions
which answer the description of
unsolicited brokerage transactions
within
the
purview of Section

other transaction speci¬
fied in the rule and in connection
with the receipt of securities in
consummation
of
the
plan.
It
merger or

pointed out, however, that the se¬
curities issued in such a plan are
by no means "free" securities,
which need not be registered in
connection with subsequent offers
sales

and

securities

such

stockholders of the merged corpo¬
On the contrary, registra¬

ration.

would

tion

be required for any
offer and sale unless

subsequent

such activity were limited to
described

are

casual

what

sales

security holders who were not in
a
control relationship with the
issuer
of the
securities,
which
transactions' might fairly
scribed

be de¬
trading transactions not

involving

distribution, or unless

writers.
At the direction of the Commis¬

sion, the staff has made a com¬
prehensive review of this rule and
re-examination of all pertinent

and
other statutory
and
of prior actions
taken at both the Commission and

legislative
materials,

The views expressed

staff levels.
to

the

1956

proposal, both in
writing and at the public hearing,
were
carefully studied. On the
as

basis

the

reached

conclusions

by the staff and as the result of
careful consideration by the Com¬
mission of the matter, proposed

■

registration

may

transaction.
be

the

for

course,

Rule

133

it would

to add supplement¬

necessary

ary data in regard to the under¬
writing and distribution of the
securities.
This
procedure
has

in the

similar

followed

situa¬

past, and appears

to
accomplish the
disclosure purposes of the Act.
be feasible and to

response

request

our

last fall for comments on the pro¬

amendments,

posed
a

received

number of letters, most of them

submitting
tions

one

sugges¬

raising some question of
interpretation. Generally speak¬
ing, Our commentators indicated
approval of the Commission's at¬
tempt to crystallize and codify its
Some

correspondents

ob¬

served, apparently with approval,
that
the
proposed
amendment
does r.ot go as far as certain of the
statements contained in the Great

Grass

Street

indicate.

opinion seemed to
suggested that

was

the rule be reviewed after

and views then be solicited

operation

and

effect.

year
as

Others

amendments to Rule 133 were is¬ wished to withhold final comment
sued on Sept. 15 of last year and
until they have had an opportu¬
public comments were invited.
nity to review the proposed form
These
proposed amendments
permitting use of a proxy state¬
would retain the existing rule, but
ment as the
major part of the
would incorporate into it certain
registration statement. The Com¬
additional provisions designed to
mission's staff has reappraised this
make it clear that registration is
entire situation in the light
of
required in certain cases where these comments made bv inter¬
a
public distribution of the se¬ ested members of the public, and
curities initially acquired in trans¬
it will submit to the Commission
actions

described

rule

the

subsequently made by a person
defined as a statutory underwriter
in the proposed amendments.
Defining

Statutory Underwriter

revised proposals together with

proposed

form
of
registration
Following
tMs step,
the Commission will again publish!
,

statement.

managements will be held in New York City on May 5, or two
weeks earlier than the originally scheduled date of May 18. The
present contract, covering a half million steel workers, expires

foretaste

this

mass

Steel Mills Not
Steel

issues

was

would be inevitable.

The Commission is striving

the

outlined

have

dili¬

situation

the

meet

order

"Iron

you

will not blame the Commis¬
itself

sion

sincerely trust

stocks

certainly share, of
our hard-working,
underpaid and efficient staff.
most

Age."

business.

will face

mills

definition

underwriter

appears

statutory

notice of rule making and give
opportunity to interested per¬

in two

new

sections of the proposal.

The first
section defines as an underwriter
a person who makes arrangements
with the surviving corporation in
a Rule 133 transaction, or with a
person

control

relationship

With that corporation, to resell to
the public the surviving corpora¬
tion's securities
stockholder

behalf of

the

any

merged

cor¬

poration who has received

such

securities. The second section pro¬
vides that where any person in

control

relationship with anyconstituent corporation at the time
a

the

transaction

acquires

curities of the issuer in

transaction

with

distribution

Rule 133

view

such

se¬

the

securities,

such person is to be deemed to be
an

underwriter.

The

proposed

amendments do r.ot deal with dis¬
tribution

by
or

mrough an underwriter

persons who,

other

after the merger

"transaction,

are

a con¬

trol relationship with the surviv¬

ing issuer.

Registration

in such

submit

sons

paratoiy

their

final

of this

final

Views,
adoption.

pre-

We
hope to receive such' mature criti¬
cism

enable

proposal

settle

standing controversy

this

long¬
earlv

of the

some

lems which

value

word about

administrative prob¬

PHILADELPHIA, Pa. — Miss
M.
Thompson, Investment
Officer, Girard Trust Corn Ex¬
change Bank, Philadelphia, will
speak on the topic of "Investment
Aspects of Insurance Stocks" at
the sixth in the series of lectures

Securities Analysis presented
by the Educational Committee of

the

aggregate

securities

offered

thereunder have recently reached

highs.

over

various

are

running

number

ahead

and

•'

this

Salle

Ronald J.

foregin made plates and

With New York Hanseatic
Walker Whit¬

affiliated with
Corporation,

become

New York Hanseatic
120

South

Salle Street.

structurals

were

purchased for

municipal projects. Even allowing for duty and trans¬
portations costs, Japanese steel can be delivered to Detroit cheaper
Steel

has

than domestic nulls

—

can

produce it.

output last week
2,647,000 net tons

produced
r

Operations

were

ducingdistricts
New

93.59c

was

the largest in history.
Mills
steel for ingots and castings,

capacity.

were

for

All

12 of "Steel's"

Taking

the filings
periods of time, we
from 15 to 70% in
15

47 %

comparable

value

periods

back have become connected with
Rodman
La

sheets have

orders

b'Tcs

New

Renshaw, 209 South
Street, members of the

;York

and

Midwest

Stock

Exchanges.

molrie

Special to The Financial Chronicle)

We expected a substan¬
BOSTON, Mass. — Thomas S.
tial
increase in this field
and
provided for it in our budget esti¬ Xeegan is now affiliated-with J.
mates for the cilrrent fiscal
year.
Two considerations
are, however,
now

endangering our policy- of
giving issuers the prompt and ef¬
ficient attention to their
problems

they

are

entitled.

One

H. Goddard & Co.,

was

Exchange.

Mr. Keegan

formerly with Schirmer, At-

herton & Co. and du Pont, Homsey

& Company.

continue

fall

contrast with

the'current

steelmaking boom. The magazine's composite on the No. 1 heavy
melting grade fell $1.50 to $34.67 a ton. The last time steelmakers
ran
their furnaces at 93%
(in March, 1957), they had to pay
$48. for the prime grade of scrap.
Business for

goods industries is running well ahead
Industry sales of home laundry equipment
close to the six-million-unit record of 1956, vs. slightly
consumer

of 1958's, "Steel" said.
may come

five million units in 1958.
Retail sales of radios (except
automotive) and television sets are expected to be at least 8.3
million units, compared with last year's eight million.
Output
of 1,600,326 passenger cars for the first three months of this year

is about 30%«ahead of 1958V (1,238,676 cars).
•

Inc., 85 Devon¬

shire Street, members of the Bos¬
ton Stock

prices

over

Now With J. H. Goddard

Scrap

Salle

pro¬

above 91.%.

fallen off sharply but only bethey'd have no chance of getting delivery
in the first half if they ordered now.
Entries are few and fair
between in books open for the third quarter.
•
/
cau«?e

2 With Rodman Renshaw
(Special to The Financial Chronici*)

greater

permanent loss of

Detroit

Street.

CHICAGO, 111.

encourage

permanent loss of jobs to American

the

tons

134 South

(Special to The Financial Chronicle)

many

cause

Ten thousand tons of Japanese steel plates were reported en
route to Detroit construction interests last week. Recently, 20,000

Coleson and Peter C. McCabe, Jr.
have been added to the staff of

Weeks,

summer

That could

"Steel" warned.

(Special to The Financial Chronicle»

Hornblower &

■.

steelmen and economists fear that a long strike
resulting shortage of steel supplies in late summer will
cause
more
American consumers to turn to foreign suppliers.
Many have hesitated to do so because of established relationships
with domestic mills and because of some doubt about the quality
of the imported steel. Once new relationships are established and
consumers find imported steel acceptable, users may continue to
buy foreign steel.
So the United Steelworkers by forcing a long tieup of domes¬
tic mills could strike out a large number of jobs for their members,

Hornblower Adds Two

year ago.

to which

are

American

and

Streets.

—

all but cleaned out of
could cut service center

United States workers.

Philadelphia in cooperation with
the Financial Analysts of Phila¬
delphia on Monday, April 27 at
5:30 p.m. in the Concourse Con¬
ference Room of the Philadelphia
National Bank, Broad & Chestnut

ley

and

orders

steelworkers, "Steel" magazine reported today.
The metalworking weekly pointed out that imports of steel
from Western Europe and Japan have been rising steadily for
several years.
Wage rates in those countries are much lower,
resulting in lower costs of producing steel.
Western European
steelworkers get only about one-fourth as much as American
workers. Japanese workers get only about'one-eighth as much as

Edna

are

and

the

new

mill-size

markets to domestic mills and

few

filed
of

many

Long Steel Strike May Stimulate Imports

facing. As we
CHICAGO, 111. — Warren. C.
days ago, both,
the number of registration state¬ Martinson and Wayne C. Ruthen-

ments

necessarily
of one product

me say a

announced

have probelms, too," said "Iron
of their regular customers. Their
balanced.
They might have eight

long steel strike
imports of foreign steel.

Hear Ins. Stocks

CHICAGO, 111.

1956 steel

be in a position to deliver during July.
But the
looking ahead to a strike settlement. They want to
have their orders on the books for quick delivery after a strike

the

Club

of the

care

ends.

Investment Women's

the start

about

centers

date.

Finally, let

Too

Phila. Inv. Women to

won't

buyers

future.

the

level

would

customers through a

This

the

This

tons.

Generally speaking, the warehouses could sustain their regular
60-day strike, assuming they will be able to
get delivery from the mills of all the steel they have ordered.
Meanwhile, fear of a strike is forcing more steel users to
place orders for July delivery. Naturally, if there is a strike the

than

million

inventories quickly."

representatives in meeting
the
myriad problems which experi¬
us

3.7

service

not

supply

another.

the

tells

the

are

months

cooperation
so
generously given in the past, and
look forward to working with all

ence

"They must take

stocks

cerely hopes for a continuance of
the satisfactory relationship which
we have enjoyed with representaAmerican

3.6

better

tons

"But

Nevertheless, whatever the near

strike.

future holds for us, the Securities
and
Exchange Commission sin¬

appreciate

will

million

admiration for

thes

a possible strike deadline.
by-product of this situation more

centers, particularly in sheets.
An "Iron Age" survey of service centers indicates
they will
be able to help some if a pinch comes.
By July 1, warehouse

istration, and will not change the
attitude, which I and my col¬
leagues

admin¬

ineffective

for

Age" said that

fill-in

that

effort.

Maintaining Delivery Promises

are

companies are turning to steel service centers (warehouses) for
tonnages they would normally get from the mills. This,
turn, is placing a strain, on the inventories of the service

unsuccessful

are

this

;
-

into the critical month of June and

over

avoid

contingencies at which I have

hinted.

most inopportune

•

The metalworking magazine reported that mill deliveries are
growing increasingly late.
Major carryover problems - are in
galvanized sheet, hot- and cold-rolled sheet, and plate. Hot-rolled
bar is developing into a.trouble spot at a fast clip..
* :
"Compounding the problem," said "Iron Age," "is the fact that
the business of some steel users is so good that incoming tonnages
are just enough to keep pace with increased use.
For these out¬
fits, steel stocks are rising slowly, if at all."
,:
Some mills have done a good job of maintaining delivery
promises, but even for these producers there will be some carry¬

time,
and we were obliged to give no¬
tice that some processing delayfiled at

mills

falling behind on their delivery promises,
according to "The Iron Age," national metalworking weekly.
"This is a serious thing for steel users who have been
counting
on every pound they can lay hands on as a
hedge against a possi¬
ble steel strike/'said "Iron Age."

December

last
new

"V"

^June 30.

views.

its

pending

when

gently

of stockholders

tions

by security holders who might be
deemed to be
statutory under¬

effected

the

essentially

expeditiously and
economically as possible where it
would be required by the amended
rule, the Commission has under
consideration a registration form
which would, in effect, permit an
issuer to use as the prospectus the
proxy statement which will have
been used in soliciting the vote
be

Thus, Rule 133 provides no

able.

that

order

been

exemption from the registration
and
prospectus requirements of
the Act with respect to any dis¬
tribution of the securities received

make

4(2), and which are
trading transactions.

avail¬

other exemption were

some

which

such

vote

for

from page 4

The other is the

us.

substantial reduction
supplemental
budget and perhaps even in the
budget for the fiscal year begin¬
Oils Limited and Kroy Oils Lim¬ cases is expressly required by the ning July 1, 1059. The Securities
terms of the Act, in the absence and
ited cases, issued in April, 1957,
Exchange Commission is not
end in Release No. 3846, published of some specific exemption.
prepared to relax its efforts to
In
order
to
make
clear that fulfill its statutory duties, and the
In October, 1957. In substance, the
is pot required in eventual result of any forced re¬
Commission there indicated that registration
Rule 133, where applicable, mere¬ connection with any and all trans¬ trenchment might easily be some
ly provides that registration of actions by persons who would delays in processing which would
be
deemed
under¬
be embarrassing to us and give
the securities and presentation of otherwise
writers under the proposed amend¬ rise to hardship to the issuers and
a prospectus to the security hold¬
ments, provisions have been to their underwriters. We had a
ers is not required in connection
danger of

And Related Problems

Thursday, April 23, 1959

The

Steel Output Maintains Upward

American

Iron

and

Steel Institute

Spiral

announced

that

the

operating rate of steel companies will average *167% of steel
capacity for the week beginning April 20, equivalent to 2,683,000
tons of ingot and steel castings (based on average weekly pro¬
duction for 1947-49)
of

as compared with an actual rate of *165.4%
capactiy and 2,657,000 tons a week ago.
Actual output for last week beginning April 13, 1959- is equal

;

Number 5840

Volume 189

1959 annual, capacity

147,633,670 net tons. Estimated percentage for the week of
April 20 is 94.8%.
A month ago the operating rate was "163.8% and production
of

weekly production was

2,631,000 tons.
A year ago the actual
placed at 1,270,000 tons, or 79.1%.
*Index of

production is based

for 1947-1949.

;

Auto Makers Continue in

High Gear

States; Pacific failures edged to 66 from
slightly. Fewer businesses
succumbed than last year in seven of the nine major geographic
regions.
The contrasting increases from 1958 occurred in the

performance of the year was programmed by U. S.
manufacturers for the week ended April 17,
Ward's Automotive Reports said.
and; ;truck

and 26,144 trucks, to top the previous high of 161,373 vehicles
produced in the week ended March 21.
+

cars

Ward's indicated that the week's passenger

car-struck volume
was the largest on record in five months, since
Dec. 1-6, 1958,
when 169,957 units, had been turned out.

year

ago.

The Dun

Wholesale

Bradstreet

Price

Food

Index

sents

the sum total of the ,price per pound of 31 raw foodstuffs
meats in general use. ■„It is not a cost-of-living index.
Its
Chief function is to show the general trend Of food prices at the
wholesale level.
V

and

Slight Dip in Wholesale Commodity Price Index
by lower prices on eggs, wheat and steel scrap, the gen¬
eral commodity price level declined in the past week.
The Daily
Wholesale Commodity Price Index, compiled by Dun & Brad¬
street, Inc., dropped to 277.88 on April 20 from 279.59 one Week
ago and from 279.92 one year ago.
/
;
"
/

Highlighting the strong production pace were Saturday op¬
erations by several producers, Ward's said. These included five
Ford Division plants at Atlanta, Ga., Chester, Pa., Dearborn, Mich.,

Corn prices fluctuated narrowly during the week and ended
unchanged from last week. Marketings are expected to increase
with good weather. Winter wheat dropped in price as improved
crop prospects and lower future prices influenced buyers.
May

Louisville, Ky., and Kansas City, Mo.; Chrysler Corp.'s Plymouth
plant in Detroit and Los Angeles facility; Rambler at Kenosha,
Wis.; and the Lincoln-Thunderbird plant at Wixom, Mich.
was

five-day routine and all Gen¬

eral Motors plants except the Atlanta Buick-Oldsmobile-Pontiac
works (four days) scheduled five-day operations. Mercury's Metuchen, N. J., plant was down all week for an inventory adjustment.
week
ended April 17, nearing the two-million mark, was 34.7% ahead of
corresponding 1958 while truck production had posted a 36.8%
gain over the same year-ago period.
The current rash of tire producer strikes should have no
immediate effect on auto output, car manufacturers having built
up their tire inventories before the walkouts.
The statistical agency said 1959 car production through

Electric Output 13.5% Above 1958 Week
The amount of electric energy

Institute.

Electric

For the week ended April 18 output increased by five million
kwh., above that of the previous week and showed a gain of
1,502,000,000 kwh. or 13.5% above that of the comparable 1958 week.
.

Car Loadings 18.7% Above Corresponding 1958
Loadings of

Week

freight for the week ended April 11,1959,
totaled 618,359 cars, the Association of American Railroads an¬
nounced. This was an increase of 97,199 cars, or 18.7% above the
corresponding-week in 1958, but a decrease of 55,585 cars, or 8.2%
below the corresponding week in 1957.
revenue

Loadings in vlhe week of April 11
above the preceding week.
:
,
<

Lumber

28,226

were

cars,

4.3%

Shipments Again Exceed Production

Lumber shipments of 482 mills reporting to the National Lum¬
ber Trade Barometer were 0.2% below production for the week
ended April 11, 1959.

In the same week new orders of these mills
1.4% below production.
Unfilled orders of reporting mills
amounted to 43% of stocks. For reporting softwood mills, unfilled
orders were equivalent to 21 days' production at the current rate,
and gross stocks were equivalent to 44 days' production.

were

For the year-to-date, shipments of reporting identical mills
were 2.0% above production; new orders were 4.3% above pro¬
'

Compared with the previous week ended April 4, produc¬

were

9.0% above.

Commercial

and

industrial

failures

declined

export sales

Failures involving

liabilities of $5,000

fell to 256

from 272 in the previous week and 296 last year.

A decline also
appeared among small casualties, those with liabilities under
$5,000, which were down to 48 from 65 a week earlier, but close
to their 1958 total of 50.
Liabilities in-excess of $100,000 were
incurred by 31 of the failing, businesses as against 30 in the pre¬
ceding week.
Most

of "the week's

downturn

was

among construction contractors

service concerns to 29 from 33.

Meanwhile, the toll

dipped to 37 from 40 and among
In

contrast, manufacturing fail¬

edged to 49 from 46 and wholesaling to 34 from 28.
and

contractors

manufacturing toll held
and service
Four

the week,

succumbed
even

with

than

1958

year

and

ago,

both

Fewer
biit

wholesaling

geographic regions accounted

for

the

decline

Failures in the Middle Atlantic States dipped to 110
.

from 118, in the East North Central to 55 from

Sugar prices held

in fairly active trading.
The price of
coffee advanced during the week in response to new demand.
Cocoa spot prices increased in light trading.
even

Improved shipping demand and interest from local packers
raised hog prices over those of the previous week.
Cattle receipts
were the largest in several weeks.
Trading was irregular, with
prices of choice steers declining in the end of the week to end
with those prevailing a week earlier. Receipts of lambs were
smaller than those of last week and trading was active.
Prices
remained steady.

Prices moved irregular on the New York Cotton Exchange
this week and closed moderately higher. Prospects of a tight

supply of "free" cotton at the end of the
market.

States cotton

United

season bolstered the
exports for the week ended last

Tpesday were estimated at 50,000 bales, against 52,000 the previ¬
ous week and 104,000 in the same week last year.
The total for
the current season was estimated at 2,173,000 bales, compared to
3,989,000 bales for the same period a year ago.

59, in New Eng¬

Extensive sales promotions, especially on

apparel, stimulated

buying this week and over-all retail trade was up
noticeably from the similar week last year, which was the 1958
post-Easter week. The most noticeable gains occurred in women's
apparel, furniture, and floor coverings.
Sales of new passenger
cars were sustained at high levels and marked year-to-year gains
prevailed, according to scattered, reports.
consumer

The

total

dollar volume of retail

in the

trade

week

ended

April 15 was 6% to 10% higher than a year ago, according to
spot estimates collected by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1958 levels by the following
percentages: Middle Atlantic +10 to +14; East North Central +8
to +12; South Atlantic and Mountain +4 to +8; New England
and Pacific Coast +3 to +7; West North Central, East South
Central, and West South Central +2 to +6.
of

women's

Spring

dresses

and

sportswear

ad¬

vanced considerably Over last year and moderate gains prevailed
in coats and suits; interest in women's beachwear was excep¬

tionally high.
as

substantial

Year-to-year gains in men's apparel were not quite
as
in women's merchandise.
Best - sellers were

men's raincoats, suits, furnishings, and sportswear.
The buying
of children's apparel remained well above a year ago, with prin¬

Over-all

tained.

sales of

Increased interest in Summer outdoor tables and chairs

and

upholstered

over

last year.

chairs boosted furniture volume appreciably
Sales of floor coverings were up noticeably and
a moderate rise.
The buy¬

ing of appliances was somewhat over a year ago, especially tele¬
vision sets, hi-fi sets, and automatic laundry equipment.

powers

interstate

tax

commerce.

WASHINGTON, D. C. —Recent
S. Supreme Court decisions
broadening a State's authority to

tax

outside

firms

will

espe-

cially harmful to small business,+
according to the Chamber of Com—
of the United States.

merce

;

The Chamber pointed out that
while the rulings mean that both.

large and small corporations may
be taxed by many more States
than
previously, smaller firms
will be least able to bear the

:
»
,

ex¬

burden.

tra

Further, the small
especially hard hit
by the legal, clerical and account¬
ing cost of preparing additional

firm

will be

returns.

The statements

Small

Senate

contained

were

Business

Mr. Dane is

Commit¬

Boston tax at-

torney and former chairman of :
th£ Massachusetts State Tax Com- 1
mission.
The Committee is

ings

holding hear- *
decisions by the Court in.'

Northwestern States Portland Ce¬
ment Co.

Minnesota and T. V. ;

Williams,
(Ga.) State Revenue*
Commissioner, v; Stockham
Valves & Fittings, Inc. The Court;
held that a State may levy an in- :
come tax on a company incorpo¬
rated in another State although
the firm's only activity in the tax¬
ing State was the soliciting of;
orders and the shipment of goods"
,

thereto.

Mr. Dane said that besides hurt¬

ing small business, the decisions

tax-paying corporation would be *
located in another State, and that;
in many cases the tax liability of !
the Ouit-of-State corporation "may
well be less than the cost of .col¬

lection."
tion

Mr. Dane said

the

•

;

ultimate solu-*

problem might bet
following ap¬

based on one of the

proaches:

ef-J

Congress might remedy the

feet" of the decisions by legislation
stating that they place
burden

interstate

undue

commerce.

Congress might permit States to,
tax

income from

interstate

but only
apportioned

com¬

the income
among the vari¬
States in which a corporation

merce,
were

ous

did business in accordance with a,
uniform formula laid down by.

Congress.
uniform

allocation

statute

could be adopted by the States.

Regional compacts might be»
agreed upon by the States as has;
been done by nine of the western ;
States in the field of highway user;
taxes.

;

Form Gillard Securities

Consumer

buying of food matched that of a week earlier.
foods, dairy products, and fresh meat offset de¬
clines in poultry, canned goods, baked goods, and fresh produce.

Gains in frozen

Nationwide Department Store Sales Up
For April 11 Week
Department store sales on

country-wide basis

increased 18% above the like period last year.

week, for April 4t

weeks ended April 11 a gain of 9% was

•

Inv. Sees. Corp. Opens
taken from

11,

In the preceding

decrease of 13% was recorded.
registered.

For the four

SALT LAKE

vestment

formed

been

Yqpk City for the week ended April 11 showed an

1958 weeks and for the March 21'week

16% increase was

For the four weeks ended April 11
over

the

volume

the'

re¬

3% increase Was.
corresponding period in 1958.
a

with

offices

the Walker Bank Building to en-,

business. Of¬
C. Cuthbert,.
Iker, Sec¬

President; Gilbert H.
retary-Treasurer.

In the pre¬

3% and March 21 week showed a 16% advance over the

In-i

Corporation,

Securities

has

Inv. Securities Co.

ceding week, April 4, a decrease of 18% was reported; March 28
was

CITY, Utah —

gage in a securities
ficers are Thomas

According to the Federal Reserve System department store
sales in New

BROOKLYN, N. Y. — Gillard:
Securities Corporation is conduct- *
ing a securities business from of¬
fices at 16 Court Street.

18%

the Federal Reserve Board's Index for the week ended April

noted

reported in the South

State's

creases

goods

the call for curtains and linens showed

lantic toll to 24 from'.43.

was

household

climbed noticeably from
week earlier and moderate increases over last year were at¬

ported.

No change

Court decision which in-

preme

would often be difficult and costly 1
for a State to enforce because this ,

Retail Promotions Encourage Consumer Buying

land to 17 from -23, while a sharper drop plunged the South At¬

The price of rice remained un¬

18% increase over that of the like period last year.

during

;

tee.

The

mortality exceeded the previous year's levels.

Commerce

again until late in the month.
changed.)
up

concentrated in retailing

where casualties dropped to 155 from 190.

Chamber

in prepared testimony by Chamber *
spokesman John Dane, Jr., for the t

moderately

representative presents testimony
opposing, and suggests solutions
to overcome, recent U. S. Sn-

of flour were very small in the
past week but prices continued to rise. Demand for rice in the
domestic market 'ltlF off hioderately and is not expected to pick

Week

304 in the week ended April 16 from 337 in the preceding week
reported Dun & Bradstreet, Inc. While casualties were less nu¬
merous than a year ago, when 346 occurred, they remained above
the 302 in the comparable week of 1957.
However, 4% fewer
concerns failed than in pre-war 1939 when the toll was 316.

ures

and

cipal gains in girls' blouses and sportswear.

Business Failures Down Moderately in April 16

retailers

Despite small offerings, both rye and
oats lost ground during the past week. Continued light offerings
helped soybeans to show further gains.

tion of reporting mills was 0.1% above; shipments were 6.1%
below; new orders were 0.7% above.
For the latest week, as
against the corresponding week in 1958 production of reporting
mills was 14.8% above; shipments were 11.0% above; and new
orders

wheat also showed declines.

Purchases

duction.
..

even

distributed by the electric light
18, was

and power industry for the week ended Saturday, April
estimated at 12,609,000,000 kwh., according to the Eclison

Led

Domestic

U.
:

repre¬

assembly, at 135,433 units, edged earlier week's 133,202
was iB5% above vthe same year ago week (73,219 units).
Truck output of 26,144 units also hovered above preceding week's
25,895 units with an advance of 57% over the corresponding 1958
W^eek (16,656 units). Combined car-truck production was a sub¬
stantial 79.8% above the same year-ago week (89,875 units).
units and

Studebaker-Packard

Seen Chief Vicfim of:
Out-of-state Tax Tremi

Higher in price this week were flour, corn, barley, bellies,
lard, coffee, cottonseed oil, potatoes, and steers.
Commodities
quoted lower were wheat, rye, cocoa, eggs, and hogs.

Car

.■

Small Business

Central and Pacific States.

The Wholesale Food Price Index, compiled by Dun & Bradstreet, Inc., remained at $6.16 on April 25. This was the third
consecutive week it stood at this level.
There was a decline of

Scheduled for completion were 161,577 units, including 135,433

North

East

7.0% from the $6.62 of the similar date

The best

car

and Mountain

Wholesale Food Price Index Unchanged

weekly production

on average

Central

64 and the West North Central also rose

„

(1905)

Chronicle

The Commercial and Financial

utilization of the Jan.

of the

to 93.8%

...

TEMPLE, Tex.—Noble P. Sny¬
der
is
conducting a
securities*
business from offices at 109

North^

the

firm;

Second
name

Street

under

of Investors Securities Co.

The Commercial and Financial Chronicle... Thursday,

(1906)

Inflation: Sole Threat to

Bright Economic Fntnre
security must

sound economic growth to
support
it. Should we impair
either military security or eco¬
nomic growth in our efforts to
achieve both, we shall have failed
rely

exhibiting very different pat¬
of growth or decline.

terns

trust.

our

story of a natipn's down¬
turn has been in one way or an¬
other
the chronicle of its un¬
The

willingness to face reality.
and again, the choice has

When

pattern

number

expansion

general in
industries and in¬

retraction becomes

terests, the economy is character¬
ized by inflationary or recession¬
ary trends.

government
impact of such

It is the task of the
to

minimize

the

Time adjustments on the individual, the
been community, and the Nation. It is
task

prevent

spiraling

made

our

out.

effect in either direction.

of an apparent easy way
People have been misled by
a seeming innovation in
govern¬
ment or finance, by a misguided

leader,

simply through accept¬

improved living standards in the self-employed, the teachers, of budgetary surpluses can bring
growing economy.,
the holders of insurance policies, about.
(10) We must accept the im- depositors in savings associations,
We must remember that what'
position of discipline and prudent parents trying to provide for their
are trying to protert is ourresponsibility.
children's education,
those
on way of life. This protection can(11)
We must not passively social security, and others like not * be* accomplished by having'
allow either inflation or deflation them.
The rich and those with absolute'.coh troLs over prices;
the
to run its course.
capacity for self-protection wages, salaries, choice of occupa-would suffer least. *
*
~
"
(12) We must—and by "we" I
tion, right to expand, and similar
mean
businessmen, workers, in¬
activities of a free society. If we:
Such a doctrine I reject!
**"
resort to such controls we survestors, and not only officials of
Terms Deficit-Financing
:
'
render many of our freedoms arid
government — make our day-toY *
:
Inflationary :.Y/;vY-'
threaten others.
'
'
"
day decisions with the welfare of
and

Continued from first page

freedom. Long-term

April 23, 1959

To this

end, we have established certain
stabilizers in our government. We
must have an awareness of—and

the whole in mind, and not merely

Another

fslsc

sssuniption

we>

">;<i

the moment for, hear discussed is that deficit ^Furthering Defense and Economic
some narrow segment.. .
nanCirig has little to do with inHealth
' v(13) Finally, we must have con- flation.
/
v In a competitive economy which,
the advantage of

fidence

—

and

this confidence

have deep faith is well

gov-'/" going

The fact ig that when the

justified—

have its adjustments;

how/then, are
to assure national seenough and perceptive enough to;*"ritjtV and
at the, same tin*:
support the principles which can sucb
borrowing adds to 4he»irioriey/Pursue a ,long, range-policy of
leave for your children and mine
supply
by
the
amount of
the 'eGonomie S()url
ess an
furthat the American people are wise.

Am,erjca -V°i sa/^fe<i
turmoil, but full of.strength

nomic

b0rroW from

has to

mpr

ia] hanks

borrowing

and

com-

'eminent
'<from t.lme to

nftoVithM-rY<p -we

incfeasds

gomg

ihi^therance^ of human welfare

; VY;,/

fiationai^ /:'pressures.
Ct»itiriued :>
The Administration js deterdeficits are bound to add to'morie- huineti. to do/this, first, by adopting■

and growth and
In

the notion that undesirable a readiness to use—all of the in¬
developments are inevitable. They strumentalities of government to
undesirable cumulative
have listened to promises that un- prevent
romantic hard work can be done effects and to soften the impact

Shai'D

hope.

contrast tO tnese

Drin-

nnKmns

wKinh

oivp

nnmarv

nail

ing

away

lems

with and that difficult prob¬
be pushed aside.

can

these choices led?

Where have
There is

lack of answers.

But
We need not go that far back in
history. One has only to look at
What happened in Germany after
the downfall of the Kaiser. One
Rome is

classic example.

the

levels

The

of unemployment.

mentalities available to us,
ever,

must

context

the

must

how¬

the
and

remember

that

problems which have faced some
other European countries — not
newcomers to democracy—in re¬
cent years.
Y

though

al¬

the

number

job security are lacking. The sav¬
ings which could lead to a better
use

both

sometimes
*

resources

are

and labor

not forthcoming.

the United

States

have

abundance of resources, skilled

amounts available for other

con¬

buy. However, meas¬
ured against the scale of national
earnings and national consump¬
sumers

AT^determination

r„nea

....

what this

PmSunf' fnr /ho fireformvolves must be made by the.one
5nn<iai hncfc S
Sfuinl? man who has-the responsibility

fln

long-range effects.
We

/
.

short-

judged

be
both

j_lir>

Tnfio«n„»

«T

A^Wea^Xittii^Inflati »
Argument
One

utilization of these instru¬

government has a
responsibilities when
the economy moves too far in
either direction, we
are
essen¬
tially a Nation of private, com¬
petitive enterprise.
The course
In the rest of the world, too,
our
economy will pursue is fi¬
are countries which in their ef¬
nally determined by the multi¬
forts
to
effect rapid economic
tudes who engage in every phase
changes have sacrificed financial of
productive activity and of con¬
soundness. In. these countries we
sumption.
inay see the dramatic symbols —
The
government
taxes
and
impressive
installations,
public
spends and, therefore, plays an
works, large buildings. But mean¬
while, in all tpo many instances, important role in the economy.
Its influence is felt both through
the standard of living for the
direct demand-for goods and serv¬
average man has remained low.
ices and through the1 effect of
prices have, gone up. Disease is
a scourge.
Job opportunities and government requirements on the

economic

has only to look at the

ing press money.

on
every segment of society. We
must strive continually to reduce

them

that

little

pol

growth" 18 8

eC0n0ml°

ipconie

for

quader stood

^he

an anwal

fhst

So long as our aim

is to increase
Wages arid real goods' and
services, I do not believe that any
tribute to

the

which

could

^gjja:rter of this
aana

™

—

the Presi^

must determirie

:how/ much 0£

our resources we/
afford to give to promoting ,
growth and-a rising standard of
living, npt neglecting the heed for
,£^pius pf revenues pver excan

con-

debasement of the

currency is a desirable
in our economy.

Pational effort
'After that,

real

characteristic

*or a comprehensive view of thd

J-ate

Sffif

ingredient'J47"^roother. all-time .high...^•

J
If in a period like this vwe say ^ndifces which can be used for '
Concern
about price inflation to ourselves arid to the world that debt reduction. We cannot
expect
during periods of rapid peacetime we cannot live within our means, such a surplus during' periods of
growth is a relatively new phe- everyone has the right :to ask: readjustment such as we experinomenon.
Most of the price-in- When do you expect to do so? .
\enced
in
1958. /But
a
surplus'
flation in our history has been
"'should be part of our fiscal pro-'
the accompaniment or the after- /
^amnce« .•PHase* ; ;. gr^ RUrihg periods of high'and
math of war. During the previous - Finally, one hears from time 'to
rising ^busines activity*. If it" is
century, price inflation was asso- time that the efforts to -balance riot
if instead we ; adopt the
ciated with the War of 1812, the the budget are without hope. iThisl'philosophy that at no time in" ouri
banking and credit inflation of the assumption I .also- reject. .;^ - • * /<: " bistory ia anything more fequiredi
1830's, and the Civil War. In this
On the revenue side,' we esti- of us than barely breaking everr
■

—

it has been associated mated our revenue in January to
with World War I, World War II, be $77 billion.
Todayi/I believe
and the
Korean War.
*there is even more evidence to
Apart from these temporary pe- support this estimate than ther^
century,

nods,

our great economic

growth

since the beginning of the nineteenth
century frequently has
occurred

against the background

tion, the government role is not of a general down trend
in/price*
primary one.
This was particularly : marked in

the

was

last January.

^we begin : to cast reasonable
doubf upon our willingness to
acc.ept the responsibilities which7
are oqrs.

,'V• Y.

i Yvr

.....

ievel
^exri^di^rex' as^ Debt^1et^meiat Responsibility
submitted iri^"'the JanustM Xhdalt^"-'To':"ignore.
bbRgatien^. ^
The

coSes'to WsoK S
offispme'^artrpf'our/debt
t0 gf'• ^5: pisosperpus-' tita^ ^is« cob-«^

m0te said - about^erican'/traThe rate of our growth and the
the late 1800'* But it has
.of good.: fatth* arid per4
development of our capacity to evident also in this
century.; ~ •
y
failure to.Teduce. our
meet the expanding demands of
debt'When we ca^eans passing;
late them to the well-being of
our economy as a whole are still
on
the problems of the debt to
people.
^
essentially anchored to the growth rrpn
as a nation are another
creased 30% while puces showed our income we
generation,, which *■' we
willing to sr>end
and the development of private
a
I t
our Dedicated Goals
moderate decline.
have no moral right to do. It also
During: the wlTUIng
V
business and industry.
decade of the 1920's we had one
Ji-"^vc.tms judgment because ! means foregoing the restraining
We are dedicated to maximum
of the most notable periods - of beReye that the American !>eop|e: effect of budget surpluses on thq
Thirteen Guiding Principles
employment.
We
are
equally
sustained economic growth in the/ 5ay® shown and are showing their ; ^i^Roriary/ pressures that : hiss
dedicated to growth in real terms.
In considering the task which
history of our country prior to determination to pursuc/prudentv toricallyr exist during periods of
We are determined to maintain a
this; imposes on our free enter¬ World War
II, with national out- policies that help avoid dangerous ^igh activity.
free economy.
Budget surpluses
These goals are prise
system, I should like to sug¬
put rising 50% in eight years.Yet Pressures for either, inflation or are ^effective, weapons .in
consistent with and contribute to
our
gest
certain
guiding principles this decade
was. characterized by
each ether.
de«atiOn.
arsenal; we cannot afford .to igwhich I believe should be a part
remarkable price .stability.
t
BeWalking
Narrow i»athY
nore them,
:
; Y
Every economy is an exercise of our basic thinking:
tween 1951 and 1955, a period
z
^
' /; The whole/world is -watching us.
in change.
(1) We must realize that long- again characterized \ by: relative
free^^ecoi^niy, wercan never closely. The countries who are
1
Growth is the process of the term economic
growth in real stability in the broad indexed
wholly eliminate the incfiidence^ of :rn'(^-;tpx- d^mqcra.<^r.m3
development and expansion of terms can be achieved' not with wholesale, arid
corisiiitfier ^fi^esi/^hflstionary pressures-duringlsome?"a,f«^<dbSdrvine- very carefviilv the
economic segments. Each day sees but only without inflation.
we reached
h new horizon of accomplish¬
(2) We
must
strive
for
an
levels attain.
ment; tomorrow it becomes a part achievable rate of
" \rV*:^'-'W.a1fcAhe,n^ow path- wracn/^is/^rpm^w/DemriartX^
relatively con¬ to that time. 'v ^ 1
the
pf our economic fabric. The proc¬ stant growth—-not a "succession of
It is not only our experience of^^eitnef^-to.^becot^di^inaQt,* 'arinriaf //rtleetirigsYtof the internaess takes place when there is a
sharp ups and downs./
the recent and war-remote^ Ypastto >maintain -the capacity- aifd^ihe feonai /Bank and Monetary Fund,
Climate .of confidence — where
(3) We must not, as we come that demonstrates grdwth 'go«;
tkere' is free play for initiative
out of a recession, seek" to force hand in hand with stable prices! aP^.,reversi"i^,y»
and^. wvcoh/:well infdirmed /fOreigri - officials
Mid Incentive. The foundation is
the ;econoiriy into a quick boom Any - realistic appraisal: of. cori- stantly pursue the. sound/objective -are aboiit ev:en~the details of "our
the willingness of people to save
which can later, injure our long- tinuing instability^"with the specf
and'-posttiori.T^Y h
and invest;1 the ambition of work¬
ulation and the waste that infla- able gr^wthv and
run Capacity-to
produce. . •
freedom^of eco- - ; :Asr
ers for self betterment, that flows
(4) We must put major reli¬ tion produces, makes it quitri clear,4*-"* day/'/
.uncvreqiy.,'.'.-;-.-,,.'..;;
r
» rtiavc.
vvnuuiiuis
have: the comforting
from'the right to choose occupa¬
ance upon the private sector of that this is not the way to.attain ?<:• ^ecessiotf:/must06r^|di9^;yjbeiu
r'that'-wfe':iiave<r recently
tions and to-bargain for a fair
the economy to increase produc¬ steady and enduring growth.
to develop; in^ a/cumulafl^e jaowri^^^
to achieve—^not without
pfeusred the product.
Then^ too, the judgments .of ward_ spiral /of declining//wages effort-^a "rather- high degree of
tion^;;
The factor of competition pro(5) We must give maximum businessmen and investors worild nnd profits, reduced bUyirigYarid price/stability.: The value of/the
yides a basic insurance against free rein to " incentives to
save, be distorted arid. create malad- curtailed employment. /Tnl^se fad-dollar /has " riot: decreased- In 12
exploitation. It is a motivating to
work, to produce, to invest.
justments
which could finally" tors; if1 unimpededj ^feed upon' riionths/ The all-commodity index
drive toward making the best use
(6) We must maintain the result in serious fluctuations in each other. Monetary "bdlicy, Sour<of wholesale:prices^^lias been-subof new inventions and new proc¬
the economy.
priceless incentive of confidence
Also, of course, if fiscal systerri, the^ "utiU^Hdh'*>f''staiffially' level.. We/'have a'subIt lies at the root of satis¬
esses.
in the value of
serious
inflation
occurs,
public unemployment compensation, and' stantial amount of Unused capacmoney.
fying
real
demands
with
the
(7) We must achieve a budget opinion may well demand govern- other resources at the "coirimarid ^ty iri/basic industries.
:
*
goods and services people want that is
in balance or better during ment controls over alnaost every of the government must he. wisely
^Nevertheless, I must repeat that
and will work to acquire.
facet of our lives.
administered in terms of both the in a free economy there is never
periods of high level activity.
But' growth in a competitive
(8) We must be willing to seek
I am confident that this nation shdrt and the long run. - Y
a cOmpleleVabsence of the mflasociety is
historically uneven. out the impediments to growth in is not now
going .to adopt a philosBy the same token," we / jrihst tioriary: rir deflationary7 threat, t
Members of the same industry our
economy whether these are ophy that inflation is a necessary maintain/a' constant awareness* of
There are those whoaay that in

manpower,

These

are

been,^
figPaf

technological capacity.

vital.

But

must re¬

tend to expand or contract at the
same time in order to maintain

found in traditional business
prac¬

tices, in organized labor, in gov¬
competitive positions. There are ernment subsidy
programs, or in
frequent shifts in geographical any other area.
areas of operations that bring ad¬
(9) We must encourage the in¬
ditional dislocations. In any given ventiveness and
research neces-*
period, differing " industries may sary for new products, new jobs,

part of. the price of progress./For

the

dangers

inflation

during this' period -of" stability /no voice

in addition to what it does to our

the upward swing of ithe cycle/should be raised about the dangers
economic structure, inflation! ex- /However
iinpopular,* we. iriu^s'tYbe lof^^ inflation. There are those/who
acts
a
penalty, that would be-wiflirig to exertrise

at'Sdfch^ time sby thaOthe re^ties of the'mo^-

levied on the pocketbook of every"r the" restraints' which. chririges/In mentirshould. shield us
American. It would fall with.the .monetary^,controls;/:gQ^brrimeritYdtetur^n^"PfOspects pf
most hardship on the wage-earner, fiscal
policy, and the rnaintenance ture
inflation
might

.from the
what Iqproduce.

Number 5840

Volume 189

There

...

The Commercial and Financial Chronicle

those who say, that if. may rise to, greatness

are

against future dangers
contributors to the infla-

warn

are

tibnary process.
What

y/ ^Romans,;; one j of

•: -

classical

do?
Would they have us ignore,, the
future consequences of what we
now propose or do?
Such a doc-

alien* to

Washington's admonition to the
new American Republic. Liberty
and and self-government, he said, are
greatest "finally staked on the experiment

our

dom,

they

wanted

The stark truth of Washington's
a statement is being underscored

security,

comfortable life, and they lost all
,

Calls

on;

■xr""

i '1

Newspaper Fraternity,

Publishers ;andeditors

^ased^0.

of our nation<1
have more than a wbrking famir- f
iarity ' with ^fhe difficulties' and 1
dangers involved in government '
greatnewspapers

of that challenge depends

areiis'•

tables.

The > Treasury
to

isr 'willing

•

the

all

in 1957.

decrease in

purchased power, steam genera¬
tion

about

was

less

than

1957 and the total cost of fuel was
also down about 8%,
.

;

October, 1957, the California

are

about 37%

Public

Utilities

Commission

granted the company an electric
rate increase of $25 million (the

last year were $256 mil¬

present shares of common stock
(this amount may have been re¬

lion compared with
only $42 mil¬
lion in 1937 and $118 million in

duced moderately by. local taxes)-.
Chairman Harold. Quinton in a

revenues

intensified;- by the recession, but country's development for

Revenues

growth and Southern California's
-

-tent: they price declines have been which has been holding back the

and

heln

great

mercial,; 27%

v..,

nive

was some

miscellaneous.

tureofourfiriancialTespohsibili-^--

anxious

times

rural, 22% com¬ company had asked for $34 mil«f
industrial and 9% lion). After Federal income taxes
this would have left the equiva¬
California is noted for its rapid lent of about $12 million or $1.27

nation.

While there

residential,

of ther

as a

three

___

he\^s^ they ',chh help i ; |
millions of Americans obtain; a't
much-needed;insight into the na-"r

ties

served

Santa

'
.

hydro produced at the

year,

a population of company's plants increased some
4,637,000 in central and southern 37%
and the amount obtained
California, the principal cities from Hoover Dam was nearly1

^ree and"was

whole panorama of viewpoints on
these c o m p l d ^ anii unromanfic

ous

plies electricity to

largely bri the choices of the

yetV

thet

Southern California Edison sup¬

including Long Beach,
Monica, San Bernardino and
Santa Barbara (Los Angeles has
American people.
Our
never »:a^ <r country its own municipal lighting depart¬
J
Letr us remember.
-;
will make the right choice; our ment). Major industries are oil,
" ""
Let : us remember, too, George freedom will be preserved.
tires, cement, chemicals, airplanes,
automobiles and machinery; farm¬
"
v
;
; j
*
ing consists mainly of growing
and packing of fruits and. vege¬
P«0C 19

wished^
\fu°m failure
; from .responsibility, then Athens.1

S'j.

Southern California Edison

almost everyday by events in the

who. have the responsibility.
security and comfort and free- [headlines. The imperialist pro¬
of keeping the nation informed as J0111*. *
• :?i.
; tfle "fr-1?*?1??.8,grams of the communist dictatorto
the problems of today, arid5Iia. JL°' fships represent the greatest chalequally. alert to the problems of ?®0.1^^'
^^
^lve lenge to freedom which the world
tomorrow.
y \
^
ei^.'ever known. The success or
you

By OWEN ELY

^hd* more than they wanted free-

those

they

scholars summed up entrusted to the hands of the
follows;- "In .the American people."

must

trine

collapse. £
writing of the Greeks

may

would they have us

r—

(1907)

many

1951.
Revenues last year gained recent talk before the -New York
hi supplying the facts.
It
they shiftHd not be regarded as no years."
17%, although a substantial part Society of Security Analysts in¬
obvious, however that wb must diore tnair by-products of cyclical
There is also another aspect of of the
gain was due to higher rate dicated that no. new major pro¬
refrain from making; public in- fluctuations. 'For many commpdt- this problem; there can be little
schedules.
President Morton, "in ceeding with respect to rates will
formation which is confidential -ties prices jiave been affected by doubt that one of the main cona recent address
before the Na¬ probably be necessary before 1960
under law, as well as giving out
deep-seated structural * changes, siderations for foreigners when tional Industrial Conference Board or
perhaps even later—since the
information which would be in- including a sharp increase in pro- they contemplate private^ in vestPanel, estimated that electric out¬ company is "inclined to let the
appropriate in light of a pending ducfrve capacity and output, com- merit in a country is whether that
put in the first half of 1959 would pressure of a declining rate of re-'
.financing? : or' information" /v^hiclr • -$etfHon. 'J1?1?1', syhwetic. endfother: country has or has not a sound be 12% over last year and in the turn build
up a bit before going
might improperly serve, to "pro- " P^0^hpts,;ahdfhe difficulties asso- currency position.
While infla- second half about
9%; for the year to the commission.'* The degree of
mbte speculation in any market, ciated wlth tne disposal Of agri- tion is raging they are bound to
as
a
whole this would mean a inflation in expenses would be the
Within these limits we do make /-cultural; sbrpluses m the ^United be hesitant. What is less obvious 10.5% increase. Revenues would
determining factor, he stated.
1
information available to the maxi- States. •;
»
but equally true is that public and not gain quite as fast and an in¬
Southern California Edison made
mum limit.
*
'• ;V -Wfrilb afecp^^
international .agencies - are likely crease of about 8% was antici¬ good progress in 1958 in
stimulate
The
fact
that
fiscal
matters may imprQve.rthe prices of some to.he less interested in using their pated.
ing construction of all - electric
are little understood
even by
of these prodiictsyand inany case n°t unlimited funds for economic
Under
The number of new meters in¬ homes.
the
Medallion
spine rather prominent and othermake ^easier .to dispose of stocks, development in countries where stalled
by the company, about Homes Program- over 43% of th
wise well-informed people--7-\vas-t it w°uld probably be an illusion inflation threatens to dissipate a
59,000 in 1958, while less than in initial/national quota of 20,0..
brought, home to me one day to tihmk.""that ;the main difficulty.'-'large part of the effectiveness, recent
years, would still reflect Medallion homes were built in the
when a visitor in my office re-. will
be.^ overcome in this way. Any country is likely to find that the addition of the
equivalent of company's area. Contracts for
marked; "You talk of the dan- Many primbry producers are faced a continuance of inflation means
a
city of 175,000-200,000 popula¬ 8,762 Medallion homes were signed
gers of morietizatioh of the debt;: with' long-? term
problems for' diminished internal and external tion on the lines.
during 1958 and in addition some
Mr. Secretary, You know I just r"wfuch tjbq. bply proper Solution resources on which to base its inConstruction budgets over the 7,000 electric kitchens were con¬
dpn't believe there is sjicji a dan- is. probably.. a diversification of vestments and; the growth of its next twn
years are expected to be nected
during theyear. Space
ger.
Probably because ".I don't their own production and exports; economy.
This I think is being between $100 and $115 million heating and air-conditioning sales
quite understand what monetize- ibn thfs they will heed new cap- more widely realized; and the
also increased materially; the com¬
compared
with $135 million in
tion means!"
r'
uat.-•■z.U-a
technical MfrprnpsR with whirh an increas
eagerness
which an innreas- 1957 and
itaL' arid, alsb. better
$150 million in 1958. The pany now has 5,000 heat pumps
;
; V
ingf number of countries have in
knowledge.
company installed extra capacity on its lines, of which over half
Explains Debt-Monetization
- "j
recent years worked out stabiliza- in the
past two years, and with are residential.
I said this to mv visitor- "Now
i
i
same ^time, the under- tion programs and put them into the completion of two 220,000 kw.
saiq ims 10 my visitor,
lyow
The company sold 500,000 shares
developed; countries have to take GffGCt.
evidence thereof
It is
uppose I wanted to write checks wrt»hfr^4.hA
fmm fheir
e"!ct
\Ve5eo1'. " 1S units at Mandalay Steam Station of common stock in January and
Titnh *i; I f CIaccount ofrthe demand from their
;overnol $100 million starting toiporrow frmwinff rid»niilatTonS for- a better
,ai.nicUAI 10r govern will have reached an adequate re¬ there will be some additional com¬
morning, but' the Treasury was
serve
position. Thus future ex¬ mon shares issued in conversion of
out of monev
If I called un a.; t
1 t !
g' ^
4 anlanxious to meet otten dire penditures will taper off. New convertible debentures and pref¬
P .%-r
-P
of which also; requires capital, fot-beeds th evolve and tn hold to
bank and said, will you loan me
irtvesfmentIn
these
Wcumevoive ana io noia xo financing will also be at a lower erence stocks (although the com¬
$100 inUlion- at V/z%
for six
i, 0f courac
pohcies TTus is a dif- rate, and for the current year the pany does not expect tor call any
ntonths if I send you ®wii.a"AMe
^?"nd ali through Jhe company will need only about $50 of these). Thus total shares at the
td that effect, the banker'vvQuld
worlds history. The Roman his- to $60 million new cash, half of end of 1959 are estimated at about
D>obablv saV* ves* I- will "
*
jook .toran expansion or creaii io torian,'Sallust, expressed it m a which has
already been obtained 9,675,00Q shares compared with
'"Whore would he- get ihe $100 Pr0vi<^:thfe ^UBdst5I?a^t are ne<eded, farhous ;passage:^ Sunt plerumque from sale of common stock.
Where uould he; cet the $100
8,906,000 at the end <rf 1958, an
even though such
an expansion
regUm voluntates vehementes et
There has been a gradual tran¬ increase of 9%. With hydro prob¬
W*t«g*ti0ap*
contxarlae." [It is the sition from hydro to steam for ably less favorable this year.
Tf^L-^ tVnnld
^lt.h the eXiP^ee.Hrat habit of rulers passionately to generating purposes and hydro- Chairman Quinton estimates that
m many parts Of
pUtsue aims that are inconsistent
the account of
1959 earnings should be a "little
based capacity is now only 30%
,the
it "is now possible to-ofte wlth another.] But in the past of total compared with 60% a dec¬ better" in 1959 than the
certainly not. He would merely ^ess whether such policies
$3.70,
arenever been wise to Dursue
create that much money, subject aDDr-onriate
It i« nerhans iust as
never oeen wise io pursu ade ago. Total generating capacity earned last year.
tn rp^rvh rnnnirnmpnt/hv nrnlifiP 5
i- f FuTJ: J ?. I: radically inconsistent policies, and at the end of 1958 was 3,404,000
to
The company has no plan for
reserverequirement^ .ny xrej- Ayell to admit first that, for a time, it will never be wise in the future
kw. compared with 2,962,000 kw. any further increase in the divi¬
ltuig our account m that sum and sonle degree' of credit creation
W
dend this year. The stock has been
accepting • the government's-; no.te that leads to' a risri in prices, may
peak demand.
as an asset.
Joins S. Romanoff
\\ hen 1 fiad finished
The company has had continu¬ selling around
60 recently and
bring forth a kind of "forced savwritmg checks for $100 million jngs", which can form the basis
ing troubles over the past few pays $2.60.
(Spesial to The Financial Chronicle)
the operation would have added for industrial and other investWORCESTER, Mass. — Guy L. years in the "subsidence" of a
that sum to themoney supply.
..nnonts.
But this is true only so Thurber is with S. Romanoff, & large steam plant in Long Beach
Named Director
due to neighboring oil wells. Sub¬
No, certainly that approaches the -jong ag , the public is willing to Co., 340 Main Street.
>
Kenneth B. Erdman, Electronic
as
stantial amounts were spent to
eontinue>holding a more or less ,
prevent loss of the plant. How¬ Sales Executive of Cheltenham/
J?
.
eaP normaT amoUiit of cash in the
Howell Kraft Onens
ever, it has now been placed on Pa., has joined the Board of Di¬
°|./Pgavlng print Printing $100 form bf -rf0tes and so long as wage)
^nd
and-.
Please
me
up
increases1 continue to lag behind
Howell, Kraft & Cummings, Inc. "cold stand-by," since production rectors of Over-The-Counter Se¬
million
.worth
of
greenbacksr the rise in-prices ; Once people is conducting a securities business costs are fairly high, and will be curities Fund, Inc., the only mu¬
which I can pay out tomorrow.'"-wake
used only for peaking purposes in tual fund-devoted exclusively to

cait

—

•

■

•

aS?g

■■Jet:*

.someon^else?^ Np,

j■

„

"oweil, rvrart upens

•

-up

to-

iq to

the,'hurts inflicted from offices at 80 Wall Street,
New York City. Theodore. B.
JJcweil iS President; Theodore

visitor broke uporifhem by inflation, they.will
"Oh, 1 would be against demand increased jyages .arid also

this point my
say,

Vice-President and Treas:
"to avoid any loss of real earnings, urer; and Albert J. Cummings,
There are many lessons to be
When that happens, not only will Vice-President and Secretary. Mr.
^ron3
1 f, or. ^
and the forced savings disappear, but Howell was formerly with C. F.
particularly from the history of th
normal
flow
of
voluAtary Childs & Co. and J. P. Howell &
printing

those greenbacks!"

r™..

man's

achieve

„

and

maintanx hurnan freedom.. Hut one.

tfon°

^"h v^Ufh
a

the - responsibilities

the^^experience in quite

vdiich

uniquely theirs. If they do
if difficult problems are
pushed aside — the generations
that follow will surely- pay the..

Hrifii

nn„nfi<jac

said

serve

£ £

North

Whitehead

that

has

^fthbrif^a
,

ready

^bnomic

tained;

weeks ^ ago

flow

pr^gress

was

savings

can

interested

hear

BOULDER,
ov/uul/l,«,

sut

every, epoch; has
its-from-a senior official of a Latin
character determined by the 'way Ameriearr Country that it was the

—

•

f7-ar»lr Umpr

succeeds

John

sponsibilities.

Earnings of the utility compa¬

With Riter & Co.

nies in the state of California have

Edward

associated

ment clause" in rate schedules to

Exchange.

very

much

affected

with

J. J* Havill Opens

Fla.—
in that Jackson J. Havill is engaging in a

was fortunate
hydro - electric conditions were
quite favorable, and there was
also a decline in the price of oil.
Thus while total output showed a

company

On^nc

-securities business from offices at
its'population; reacts to the mate*, policy *«of his new administration 417 .East 54th Street, New York
rial events they encounter; They "to put a quick end to inflation City.

Erdman

Lloyd has become
Riter & Co., 40
been unable to obtain from the Wall
Street,
New York City,
state commission a broad "adjust¬ members of the New York Stock

Aloysius «»
xuvjoiuo J,

"
Frank Lerner is conducting

Mr.

Darrah who resigned because of
the press of other business re+

the city directly.

Weis is now affiliated with Jack provide for automatic rate in¬
Dusapin, 506 Juniper Avenue. He creases or decreases to compen¬
was formerly ' with .Liberty Ia- sate for changes in the price of
oil and gas fuels. ' in 1958 the
vestment Company of Denver.

few !

statement

Colo.

investments in unlisted securities,

changing fuel costs and they have

Dusapin

(Special to The Financial Chronicle)

number

inHiKtriaii/pii

—

] Alfred

Joins Jack

special problem

ditional natural gas for boiler fuel
for its nearby plants—it does not

been

ulation in' real estate and othei.ventures.
T believe it has been

are

not

Co., Inc

savings will also be diminished
an(£ increasingly diverted to spec-

Another

has been smog in Los Angeles—
the company has been seeking ad¬

struggle

hasten'b>buy whatever they can Kraft,

future.

WEST

PALM

BEACH,

securities business from offices in
the

Citizens

firm name

Building under the

of Jackson Havill &

Co. ,Mr. Havill was formerly

gain of nearly 5% over the previ¬ Frank B. Bateman, Ltd.

with-

The Commercial and Financial Chronicle

(1908)

least $40 million and

Continued

from page 2

share.:*:;....

per

There

Sets

Markets with 500,000 shares outloo",?™2'^5'
closely held
200,000 shares

ElectronicsLaboratory J.f t he
Space Technology Laboratories of
Ramo-Wooldridge Corporation. In

Pacific Automation Proddesigned to prodemanding service

Inc. cable

vide the most

o£

today and tomorrow. The experiof Pacific Automation Prod-

cnce

reliability of its products, qualifies this
-Company well to serve in coming
years the most advanced cabling
requirements-military, industrial
nets, Inc., and the proven

and for various
ers

the

business

systems

being

technicians

fti^d^ml^ifectiir^^^^iss^le^imu^

B. S.

pui£base warrants in units

and

^$17

warrant

rnJo

formed

^Pace Electronics Corporation.

one

nnif

evelv

fnr

of stock

the

three

(with

held

oversubscription privilege).

The

Stf SSMStoM C<ri"i £ "nderwritten by sutro
validating the operation of
Wy TmS
Bl0s* & Cor,nd

missiles and missile launching controls. For these simulator systems,
the Company furnishes

all necesnary cabling and builds or purchases all necessary electronic apparatus
not
furnished by
the
customer or the government. > ;'
A minor but gradually growing

'isnec?

die Company's business

Snsists

sal^

^usfom cabling

and cable assemblies to industrial

commercial

and

users,

for such
electronic

applications
as
the
linking of computer components
and machinery used for automated
industrial applications.
order

accommodate

the

(^rocfanv
HvHinn

toDr

Commercial

^tHlVteVto
vkfon ^

the

use

interchan

relav

chaso one share of caPital stockPrior to May 21,-1961 the exercise
price wiU be $20 per share' from
This
is
one
of
the commercial' May 21, 1961 to May 20, 1962 $22
:ar^s he L Lr LZ hab a per share>' from Ma^ 21> 1962 to
its obieSives ^Others include the May 20, 1963 $23 per share; and
com-

can

reohtv

within

five

time

years

utilization of experience gained in

™

Dr.

rapidly increasing volume of busi- Fletcher maintains that these apness,
plant and facilities have plications will greatly enhance
grown
from an original 18,000 the communications between
square feet in the first year to countries
and will drastically
more than 160,000 square feet at
change the methods of navigation
the present time.
Total employ- for added ship and aircraft safety.
enent is

now

well

1 AAA

over

n-'

/-«

The
4

new capital to be raised for the
Cassa per il Mezzogiorno.

Cassa is

government-backed agency for economic and

agricultural development. A Morgan Stanley underwriting group
is selUng S20,000,000 of the Cassa's bonds in the public market

and Morffan stanIey »tself is placing an additional $10,000,000 of
short-term loans with institutions. The World Bank and European
The

Southern Italy

Develop- repayment of the

power

rii

tho

Aiitcranriinof

puniToi

loan will

meat Fund (Cassa per 11 Mezzo- be completed in 1979.-,
giorno)

yesterday

(April

22)

„5

The loan by the European In-

vestment Bank, which

lished in 1958, marks the beginning of its credit activity. This is
the Cassa's sixth loan from the

poutnern limy development r unci
m me inew ioik capital market,
A group of investment firms

headed by Morgan Stanley & Co.
offered $20,000,000 15-year 5^2%
sinking fund bonds due M<iy 1>

^ nnnnnn

nior»«

Markets

Common Stock at $6.50
Public offering of 300,000 shares
x

of Greater All American Markets

jnc

stock

common

$6.50

per

was

price

made yester-

(Aprii 22) by J. Barth & Co.

Net

the sale of

pr0ceeds from

the
b

the

common

will

used

principally

company

for

the purchase of inventories for six

in/, c/-

The Company maintains

*™3^ly

technicians who devote in the ag-

tracts for significant R&D work
from such leaders in the industry
as
Hughes Aircraft Company,
-North American Aviation, Boeing
find testing site cabling systems, Aircraft Company and Jet Progs
well
as
to
developing new Pulsion Laboratory
(Cal Tech)
products. These research and en- Work is in the planning stages for
gineering functions are supported tbe United States Air Force, and
by chemical, electrical and me- for the United States Navy.
Inchanical laboratories and testing dicative of the exciting prospects
facilities in the Company's plant.
for Space Electronics is the type
l^regate

substantial

portion

their time to designing cable assemblies
and
missile
launching

of work called for in

Space Electronics

current

In June, 1958, PAP organized
Space Electronics Corporation as

cn-80% owned subsidiary, with a
View to broadening its activities

work

combination,

operations

centered

tnent,

the

electronics

and

both

Space

field

missile

electronic

airborne

are

ground-

Gearhart & Otis Offer

Florence, Ala., Bonds

sale>

$128,000

with highly-experienced scientists

iuho

advanced and. to
*

and develop-

35 ?? ..7

tSw
.

wlf

rnntrni

guided

successes.

They are nalionally recognized authorities in
the electronics-missile

area.

from 1972 to 1977 inclusive, at

jpni

•

Tyr

^
ElrtnhAr
ITctcner

price of $850 plus accrued interest
per $1,000 coupon bond. Interest
js payable April 15 and Oct. 15
exempt from Federal income

seb

tax in the opinion of coundo not carry any

Tbe bonds

offer from Sty Ion Cor.

man-

piofloS !r

For the fiscal

31, 1959, it

viwr

year

seems

WiVin^'A Lw
^
3
Jnirintf
•

ending Aug.

reasonable
01 q

•

iJ tS?

public

All

Great

available for

American

Inc.

Calif. Total sales of

Downey,

eight supermarkets for 1958

weekly

$52,810 per supermar-

large average of

in ket.

works

credit and provides other assist-

Offer Oversubscribed

to promote the development
of agriculture and industry in the
south. The lire equivalent of the
net proceeds from the sale of $30,000,000 of bonds will be applied
to
the
general program of the
Cassa.
*

ance

000,000

liT

tbe

♦

equivalent to $40,- scribed.
from the European InThe net proceeds will be used

World

(E
(EIB)

and from for general corporate

will
will

Bank

help

purposes

and

to working capital.

the
Mercure
thermal
The business of the company is
power project south of the manufacture, sale and distriNaples and two industrial projects bution of novelty items, toys and

r Hrown.
«

Sicily; the SINCAT and

the costume jewelry.
The office of
plants, the company is at 146 West 28th
both near Augusta. The Cassa will St., New York, N. Y.
relend $18,000,000 to the company

CELENE

Boulevard under the direction of project,
George U. Robson.

regional

petrochemical

Of New York
Security Traders Associa-

tion of New York has caUed

hpirc

annum.

bears

the

and

-for-

xor

World

power
to
a

rAiAnriinrr

rciGnuin^

rnnrprna
concerns.

intcrAst

The

interest

$22,000,000

qcpnpv

agency

;tria1
industrial

loan

Security Traders Assn.
The

City,
April 21 publicly offered 50,000
shares of cumulative participating preferred stock (par 75 cents)
of Aida Industries, Inc. at $1 per
share. This offering was oversub-

finance
electric

r»aYfAr^Rrntxm
mi.

Darius Inc., of New York

loans

it Bank
vestment Bank

Wew Walston Branch

^1?

years the Space Electronics sub-

will be

balance

additional working capital,

Aida Industries Stock

the

buiid.

and

fixtures

Italy in the fields of
agriculture, transport and public
health. The Cassa also extends

The

+3
$J-50further into the future
ics
+P^Ce^g+e r2?t.ure®' ^
18 estimated that Wlthm three

land

created by the Republic o£ were $21,969,075, a total

was

„

The Company's

the

Mezzogiorno the

per

Italy in 1950 to carry out

Bradford Branch

—

The
President
—
Electronics
Comorpfinn
Tflmpa

stirring

space-age.

lion and communication on most
the early and recent

-waissile

the

well secured
potentials of the

Cassa

Tbe7 agement impresses as "dynamic,
FT. LAUDERDALE, Fla.—
?eir capable aad technically competent Walston & Co., Inc. has opened a
tec?hnimlS
imaginative.branch office at 3116 East Sunrise carrying out the Mercure
Techniques IOl
For thA fiarnl
AnrJintr Ancr
BoillovarH lindpr thA HirAAtiAn nf
nrniAAt

«aent of electronics
miidancA

Florence,

bonds, due

revenue

nr/f"

Company that is

lease

and

southern

n^ssaiJ l1157 favorite security because I R
°?" 2)resee a brilliant future for this '
areemi"

lease

and
equipment for these markets, and

ings

issue by maturity.

The

program

ornSfipfLnU?nnn>vu+•
fiwr

City

the

der

entire

development

}n this field. With billion of dol- exchange

Calif.; Proceeds will also be used
for advanced rental payments un-

Markets,
owns
and
operates
eight
supermarkets in Los Angeles and
Orange Counties, Calif., none in
the city of Los Angeles. General
offices of the company are located

Ala., 5% first mortgage industrial

lars destined to be poured into this poration
country's military posture over the
outside
the
earth's
atmosnhere. next several vears. PAP is sure to
atmosphere. next several years, PAP is sure to
New
Advanced practical research and be called upon to perform an
development is the primary busi- ever-increasing work load,
f
ness of Space Electronics.
This is
1
Pacific Automation, therefore, is
use with satellites and
vehicles designed to travel

9luding commercial banks. Tbe
four-mid five-year bonds w.ill be

prior
to
May
1,
1969,
except
through operation of a sinking
fund which will begin on Nov. 1,
1964 and is designed to retire the

as.surai?c?. ^ba^ tbey are dealing and js

equip- with well-established reputations

Lased, for
other

instance, involve the development
of a communications system for
Gearhart & Otis Tnr
Naw Vork
use between Mars and Jupiter.
City are o£fering!Vubject to prior
This well-rounded

The

1™!^

1.anufacturer of priced at 100/0.

bank loans, and to increase in- rency. The four- and five-year
vestments; also for other corpo- bonds are not redeemable. The
rate purposes.
15-year "
"
bonds are not redeemable
"

projects which, for

^ then, of Pacific Automation Proddei2a^d nets, Inc. and Space Electronics
S TnwSi ^ 5G Corporation provides a team that
Si? pLSLeP-nri- f
any?ne in thf conntry with autorisine salei a ead.
steeply mation, missile, or spacewith the
vehicle
g
a es nhead
problems can come to,

ufrpp

Within

.va"°us inQusti1£U Products.
Principal and interest of the
The net proceeds of the offering bonds will be payable in New
will be used to reduce certain York City in United States cur-

of the

some

ThA
The

5%%

FTR
EIB

V,'cr

Bank

npr

loan

including

commission which

al-

located to the Bank's Special Re-

Long & Meaney to Admit
T

-jv/r

i c

r»

Long & Meaney, 15 xSroaci street,
fleW

Ynrk* Pitv

New Yoi*k
May

rnpmhpr^

fOlK

1st,

cnUniwon

o*f

Stock Exchange,

wiU

th^

mCTUiers OI me

admit Morton

on
S.

r>oi^nn«?mn

rrt

Schulman to partnership.

New Bache Office

DALLAS, Tex. — Bache & Co.
sPecjal meeting of all regular serve. Both loans to the Cassa are
Frnnk w
t Yi06-^6-81"
nil ihl
♦
\u
+•
•+•
members for Wednesday, May 6th, for a total term of 20 years with has opened a branch office in the
B an* mr fu„!, f„a?^p.a2yloth?r actlvities, at the Bankers Club (5 p.m.) for amortization beginning in 1963. Mercantile Dallas Building under
niSSSS3113* 55' i,! indlcating the strong possi- a new consideration of certain Repayment of the industrial loans the management of Arthur J.
was
Director
of
the
sidiarv

will

aoupI

ci-zA

wno

bility that 1962

sales

will

amendments to the By-Laws.

will

completed

1971

and

Messing.
l

,,,

was estab--

and Ioans equivalent to $20,000,000 World Bank, bringing total World
each from the European Invest- Bank lending for the Cassa pro2?^
and from tke World gram to nearly $260,000,000.
Bank. The bonds and the loans
:
are guaranteed as to payment of Barth
Offers Greater
principal and- interest by the

^9J4, at 97^2% and accrued interest to yield approximately 5.75%
23% of the Outstanding common to maturity. Morgan Stanley &
stock
of American
Hardware Co., as agent for the Southern
Corp., a hardware manufacturer; Italy Development Fund, will

Vestment Bank are each providing loans of 820,000,000.

1963 to May 20,1964 SariSHhf?fir^h'ori^^n^iwHhS All American
maiks tbe_
nS

B. S. F. Company was incorporated on Aug. 10, 1955 in Delaware. It is not an operating company but has direct and indirect
interests in a number of affiliated
companies engaging in various
industrial and financial businesses
It owns approximately

and
meteorological
stations
for
long-

weather observations.

range

F*imd, known

$25 pershaie.

the Missile and Space Program to
the
development
of
electronic
satellites as world-wide naviga-

tional aids,
surveillance

April 21 covering $70,000,000 of

Units are separable on delivery, borrowed $70,000,000 in a comStock Purchase warrants are ex- bmed operation consisting of
ercisable 011 or before May 20, issues of $30,000,000 of bonds on
1964 and entitle the holder to pur- the New York investment market

and

According

noli cations

Fletcher

Cortclyou h. Simonson, partner in Morgan Stanley &
Co.,
Italian Ambassador Manlio Brosio, Prof. Gabriele
Pescatore, Pres¬
ident of the Fund and W. A. B. Iliff, Vice-President of the
World
Bank
(left to right), sign contracts at Morgan Stanley office

offering to

the holders of its capital stock of
record April 21 the right to subscribe on or before May 6 for
j 13,079 shares of additional capi-

m^^le control^jectives of

and

F. Company is
_

stock (par $1) and 113,079

scientists

too

long-

B. S. F. Co. Stock Offer

Ie$d"
team of

ex5t&

Sulro Bros. Underwrite

^^aIaa

and commercial.
The

term potentia

including Atlas, Thor,
Titan, and Minute Man missiles.
Frank W. Lehan, the Vice-President of Space Electronics, was
previously employed as the Assistant Director of the Electronics
Laboratory of the Space Techno}ogy Laboratories of Ramo-Wooldridge Corporation. Mr. Lehan
served as Project Engineer for the
development of the Minute Man
Program,

are

utilized so effectively in
America's major missile programs,
are also finding wide applications
in the commercial and industrial
control and automation systems of
being

nriced

on near-

systems for missiles in the United

which

techniques that

same

modeX

onlv
on

not

seems

based

are^parl. cha'nS' °£ Which

The

are

ft
they

$70 Million for Southern Italy Development Fund

present plans for

dividend payments or financing.
Thus, Pacific Automation, priced
at about 2712
(Over-the-Counter

The Security I Like Best
every

are

earnings $4.-

Thursday, April 23, 1959

...

.•

Number 5840... The Commercial and Financial Chronicle

Volume 189

•

The following statistical tabulations

latest week

Business Activity

week
Latest

iron and

institute!

steel

Indicated Steel, operations,

Week

stills—daily

*2,657,000

2,631,000

1,270,000

April
April
April
April
April
April

———

10
10

7,127,375
118,092,000

construction

12,602,000

6,788,000

10
10
10

214,594,000
19,281,000

*213,615,000

210,290,000

18,616,000

78,994,000
57,393,000

*78,951,000

*58,881,000

18,988,000
78,876,000
55,010,000

590,133
561,207

7,494,000

595,302
564,102

13,784,000
*6,798,000

Private construction
State and

■

618,359

568,620'

■

—

-.April 16
April 16

225,300,000

161,502,000
121,755,000

27,600,000

April 11
April 11

7,950,000
336,000

*6,980,000

7,625,000

308,000

374,000

7,061,000
358,000

April ll

130

117

124

12,609,000

12,604,000

12,900,000

11,107,000

39,747,000

INDUSTRIAL)

DUN

April 16

—

April 14
■———April 14
April 14
—

ton)_
—_——
ton)——

(E.

QUOTATIONS):

;

Eleecrelytic copper—•
'
Domestic refinery at-—:——
.

304

337

6.196c

Lead (New York)
„

Lead

(St. Louis)

$66.41

Aluminum

$36.50

$40.83

$32.83

———

at-

Average corporate-

10.500c

April 15
April 15
April 15

11.000c

10.000c

24.700c

102.500C

103.250c

92.375c

Produced (tons)

Stocks

Shipped

91.05

91.77

92.35

99.68

87.86

88.40

91.48

88.95

89.37

89.78

97.78

90.34

91.34

91.91

4.03

3,97

3.87

2.73

4.44

4.41

4.01

4.24

4.21

4.14

4.34 '

4.29

4,25

3.77

4.47

4.42

4.41

4.00

4.87

4.82

4.84

4.66

4.57

4.53

21
21

4.49

4.46

4.43

4.39

4.32

4.28

3.82

April 21

392.9

390.2

390.6

391.9

April
.April
April
April

4.48

3.59

296,719

236,799

312,695

357,953
295,358

305,979

307,440

498,653

470,191

382,210

111.01

111.52

110.58

3,291,090

2,312,580

Month

572,550

2,637,930
3,210,480

467,780
1,990,660
2,458,440

383,300
21,700

650,670

Mar. 28

434,120

584,430

Mar. 28

455,820

646,230

450,620
65,700
413,720
479,420

kar.

562,540

1,030,530

587,170

transactions initiated on the floor—

—

Total

sales

——
-

—-——

—

Other-transactions

—Mar. 28

71,660

199,700

128,670

Mar. 28

552,070

950,780

690,395

623,730

1,159,480

819,065

Mar. 28

2,942,240

4,972,290

purchases

462,940

834,050

Mar. 28

2,552,450

4,182,140

5.015,390

5,016,190

3,350,370
662,150
3,094,775
3,756,925

—

Other sales

—

———

•—

—

Total sales

—

Number

dealers

$108,293,867

$97,385,106

— Mar. 28
——Mar. 28

1,643,766

5,912

6,166
2,023,042

11,127

1,295,315
$64,042,553

1,632,639

$99,449,928

$84,969,399

368,660

567,350

429,040

Mar. 28

56L350

429; 040

Mar. 28

467,240

758,190

627,700

Total

round-lot

■Short

Tubes

sales

——

—

13,679,990

10,726,790

17,313,710

12.4

12.2

12.5

19.6

19.3

*25.8

23.9

7.8

7.7

347.5

....

■

345.8

6.7
332.3

ASSOCIATION,

February:
of)—

(Number

(

7,433,778
8,962,026

6,319,968

17,997,577

19,819,951

1,117,230
1,307,937

1,090,063
1,324,927

904,038

3,584,153

...

—

8,858,782

19,435,050

—

3,401,446

3,572,372

8,715,742

5,832,701

(Number M)—
-

—

...—...—

993,784

of)—
370,381

343,906

310,407

376,372

377,026

283,170

965,575

...

953,677

760,923

Bus Inner

(Number of)—-

4,316,393

Tread

Total
at

face
any

30,315,000
32,588,000

♦*30,816,000

26,837,000

DI¬

SECURITIES

U. s. A.—Month of March:

•

—

$62,21G,S00

STATUTORY

—As of March 31

11,328,050

6,982,661

*38,118,000
*41,290,000

33,378,000
IN

$22,992,650

$10,591,100

$288,000,000

$280,000,000

282,034,279

285,103,661

272,624,225

118,760"

112,308

103,959

$282,153,039

$285,215,969

$272,728,185

purchuses
GOVT.

3,443,870

33,634,000

•

GUARANTEED

AND

3,295,764

7,536,106

36,000,000

(pounds)
Production
(pounds)
Inventory (pounds)
RECT

4,800,057
3,805,739

(Camelback)—

Rubber

Shipments

601,260

16,482,230

12.6

7,364,072

Mar. 28
———Mar- 28
Mar. 28

13.3

4,093,794

Other sales

Total sales

9.1
30.9

In¬

.....

Inventory
Passenger Motorcycle, Truck and

Net

831,480

40.7

9.4
32.3

26.3

social

for

income...—

MANUFACTURERS

Net sales

950,580
21,798,840
22,749,420

*44.0

76.9

19.8

Production

SECURITIES EXCHANGE

529,060
13,150,930

33.1

12.5

—

Shipments

408,370

sales—

63.5

*34.5

9.5

nonagricultural

Truck and Bus Tires

y. STOCK
COMMISSION
FOR ACCOUNT OF MEMBERS (SHARES):
—

*64.8

12.5

income

Production

TOTAL ROUND-LOT STOCK SALES ON THE N.
EXCHANGE

97.9

*80.8

44.2

Inventory

2~79~890

purchases by dealers—

235.1

*102.1

32.4

...

TREASURY MARKET TRANSACTIONS

Number of shares

$348.8

*245.4

34.7

.....

...

contribution

Tires
Shipments

279,890

368,660

*$3G3.0

65,1

.....

INC.—Month

Mar. 28

—

Other sales

£22,693,000

81,1

of persons

Passenger

Number of shares—-Total sales.

Round-lot

Income

RUBBER

$43,040,716

Mar. 28

26,350

£46,336,000

102.1

16,078
i 996,376

Dollar value

$52,911

*28,135

246.1

professional

payments

1,012,454

Mar. 28

*$49,209^

,686,000

....

income

and

employees'

Total

Round-lot sales by dealers—

—

labor

Transfer

$50,336,445

2,029,208

Mar. 28

Short sales

$49,493
28,214

COMMERCE)—Month

interest

Loss

1,301,227

$30,625
22,286

38.1

BRITAIN

Inventory
—•„
Tractor Implement Tires (Number
Shipments

$70,874,815

*21,346

$364.5

GREAT

industries

Personal

1,162,232

Customers' other sales

Dividends

2,259,040

1,855*697

Dollar value

Odd-lot purchases by dealers (customers' sales>—
Number of orders—Customers' total sales
Customers' short sales—

ISSUES

...

Rental

1,868,550

2,223,820

*$27,863

39.0

13.2

390,490

1,420,266

1.93

21,431

;

—

Mar. 28
Mar. 28

—

2.25

1.98

38.6

•'

dollars):

....

Other

(customers' purchases)—t

of shares—

(millions

January

CAPITAL

Business

STOCK TRANSACTIONS FOR ODD-LOT

Odd-lot sales by

2.36

$28,062

Production

ACCOUNT OF ODD-LOT DEALERS AND SPECIALISTS ON N. y. STOCK
EXCHANGE—SECUURITIEg EXCHANGE COMMISSION

$2.11

1,99 '

Government

account of members—

Short sales

*$2.20

,2.37

....

February in billions:
personal income
Wage and salary receipts, total
Commodity producing industries
Manufacturing only
Distributing industries

2,151,360

Mar. 28
Mar. 28

Total round-lot transactions for

39.4

$2.21

.........

goods

(DEPARTMENT

566,250

Other sales

-Total sales

♦40.3

39.4

490,260

Mar. 28

,—-

434,200
75,990

73.53

*40.0

■

Total

37,900

344,620
382,520

87.75

78.01

40.1

.......

surance

initiated off the floor-

Total purchasesShort sales

Total

61,800

$81.45

*95.11

PERSONAL INCOME IN THE UNITED STATES

353,280

Mar. 28

1,310,270

*$88.00

78.41

■

Total

NEW

276,600
1,033,670

1,935,840

102.802

118,546

40.5

;

Nondurables

1,363,880

369,580

1,566,260

Mar. 28

——

1,996,400

167,500

95.99
....

Durables

Service

Mar. 28
Mar. 28

341,936

inventories—

110.09

Mar. 28
Mar. 28
—

99,466

317,300
168,400

$88,62

.....

....

——

95,020

130,100

140,100
148,000

goods

Durable goods

MEM¬

—•—*

119300

130,100

MANUFACTURERS' INVENTORIES AND SALES
(DEPT. OF COMMERCE) NEW SERIES—

432,117

112,400

309,400

...

Hourly earnings—
All manufacturing

256,970

11
11

INDEX—

—

Other sales

.-.—

MIDLAND BANK LTD.—Month of March..

APnl 1<

sales

28.

3.89

——

Total purchases
•Short sales

112,200

4.31

April
April
April
April
April
April
April
April
April

„

——

186,389
203,150

109,100
109,300

;

All manufacturing
Durable goods
Nondurable goods

98.88

21
21
21
21

224,694

Hours—

86.65

—

ACCOUNT

79,600
262,100
261,000

earnings-

102.63

100

Total purchases
Short sales
Other sales

;

.....

93.97

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

Total

(bales)

92.93

—

FOR

;

Fob.

92.50

—

TRANSACTIONS

81,098
406,501
1,042,009

569,800

LABOR—Month of March:

Weekly

96.07

——

OIL, PAINT AND DRUG REPORTER PRICE
«=

(bales)

Nondurable

84.30

period

147,400

1,507,400

214,200

....

FACTORY EARNINGS AND HOURS—WEEKLY
AVERAGE ESTIMATE —U, S. DEPT. OF

national paperboard association:

Other

(bales)

Produced

95.92

90.06

—

AVERAGE

87,200
468,400

....

90.06

34.55

Percentage of activity——
Unfilled orders (tons) at end of

127.0

PROD¬

(tons)

89.64

89.92

—

116.6

127.3

103,800

28-.—,

Feb.

89.09

83.91

ROUND-LOT

(tons)

97.34

89.23

(tons)

117.0

127.4

(tons)

85.31

—

1949

(tons) Feb.
(tons)

84.96

Production (tons)

128.0

Meal—

and

84.32

April
April
April
April

Orders .received

14L9

129.4

Linters-—

24.000c

102.500c

"""""""I April

——

index———

127.9

147.6

4,126,200

SEED

191.8

117.1
...

COTTON

185.4

190,000

AND

138.5

148.6

....I

92.0

144.1

133.1

191.8

.....

129.5

91.7

129.8

:
_

98.6

130.8

91.7

106.3

98.7

133.3

Nondurable

Moody's Commodity

129.9

109.0

131.3

All manufacturing
Durable goods

AVERAGES:

106.7
108.0

98.8

April 21
April 21
April 21

Railroad Group
Public (Utilities Group
Industrials Group

133.1

107.8

...

Stocks

12.000c

—

Baa

133.1

Hulls—

11.800c

ludustrials Group

104.9

111.3

106.7

April 21

Group—

Average corporate

137,2

103.2

Produced

21.275c

11.500c

U. S. Government Bonds

30.600c

11.300c

—

MOODY'S BOND YIELD DAILY

Aaa

24.300c

11.500c

Group

Utilities

30.450c

31.175c

11.500c

Public

29.175c

11.000c

—

31.225c

10.800c

AVERAGES:

DAILY

31.150c

11.500c

——

Railroad

138.9

103.8

at mills (tons)...
(tons)
(tons) Feb. 28...

Shipped

10.800c

—~

-I—I—IIZI——I-1——J

Baa

115.9

140.0

124.4

144.3

SEED

•'Shipped

U-

11.000c

at—

PRICES

137.0

118.2

...

Stocks
.

'ML"

———-

U. S. Government Bonds—

346

' »•» n»

—April 15
—April 15
April 15

—

(primary pig. 99.5ft) at

BOND

MOODY'S

—

Straits tin (New York)

127~3

138.8

oil

.....

care

Crushed

$66.49

$35.17

April 15
April 15

—

atat;

tZinc, (delivered) at
Zinc (East St. Louis)

128.2

118.5

care

Stocks

5.967c

292
t <

at——

Export -refinery

128.5

and recreation
goods and services

Cake

(per gross

METAL PRICES

114.0

Cotton Seed—

•'

(per lb.)

< per gross

114.1

UCTS—DEPT. OF COMMERCE—Month of

IRON AGE COMPOSITE PRICES:

Scrap steel

(Jan. 1953—100)—

Received

FAILURES (COMMERCIAL AND

Fig iron

109.9

February:

(in 000 kwh.)

BRADSTREET, INC.—

108.1

—_—

COTTON

EDISON TiLECTRIC-INSTITUTE:

Finished -steel

114.5

121.7

Reading
Other

—-

SYSTEM—1947-49 AVERAGE <=s 100—
Electric ,output

112.0

114.1

121J&

139.0

and fuel

Private

INDEX—FEDERAL RESERVE

DEPARTMENT STORE SALES

113.8

114.0

electricity

fuels

Personal

110

April 18

(tons)
Pennsylvania anthracite (tons).

112.6

and

Medical

(u, s. bureau of mines j:

Bituminous coal find lignite

132.6

Transportation
Public

142,987,000

168,400,000
129,400,000
39,000,000

133.9

___

foods at home

Footwear

$304,489,000

April 16

coal output

203,600,000
176,000,000

133.8

Men's and boys'Women's and girls'..

487,003

$393,700,000

118.7
117.2

Household operation

521,160

122.5

119.0

Solid

56,962,000

123.8
117.1

HousefurnLshings

73,727,000

$469,800,000
206,500,000
263,300,000
119,700,000
143,600,000

123.7
116.1

vegetables

Housing
Gas

Year

.Ago

Other apparel

—April 16 $371,300,000
167,700,000
April 16

municipal-.

Federal

and

Food away from home

213,786,000
17,406,000

Month

118.2

Rent

of that dates]

IIII

and

Apparel

Public constructiorn._—.
-

—

at home

Other

2,031,000
11,720,000
7,248,000

7,334,000

are as

Month

1947-49—100—

engineering

—

Fruits

6,204,185
25,817,000

news-record:

items

INDEX

bakery products.
Meats, poultry and fish
Dairy products

railroads:

Total LJ..S. construction

;

7,154,520
8,283,000
28,432,000
2;315,000
14,189,000

Revenue'freight loaded (number of cars).—;i—
.
April ll
Revenue freight received from connections (no. of cars)—April ll
engineering

*7,128,985
8,199,000
28,405,000

28,268,000
2,107.000

2,184,000

of quotations,

cases

February:

Cereal

american

PRICE

Food

(bbls. of

Mioncn

Food

—

CONSUMER

Ago

§2,683,000

output (bbls.).
Residual fuel oil output (bbls.).
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at~—
—April
Kerosene (bbls.) at—
—.
April
Distillate fuel oil (bbls.) at
:
.April
Residual fuel oil (bbls.) at
—April

civil

Ago

J—April 26

—

or,

either for ths)

are

Latest

'
average

Dates shown in first column

that date,

47.1

Distillate fuel oil

Week

production and other figures for thi

cover

Year

92.9

(bbls.)-.

average
;——

output (bbls.)
Kerosene output.- (bbls.).

association

Month

*93.8

gallons each)

Gasoline

month ended

§94.8

(net tons)--.

condensate output—daily

Crude runs to

month available.

All

Steel

american petroleum institute:
Crudeoll and

April 26

(per cent capacity)

Equivalent to—
ingots, find castings

Indications of Current

american

(1909)

amount

DEBT

LIMITATION

(000's omitted):

that may bo

outstanding

time

Outstanding—
WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 —100):

—

U. S. DEPT. OF
.

Commodity GroupAll commodities
Farm

products

Processed

foods

Meats

All commodities other than farm and

foods.

April
April
April
April
April

119.9

•119.7

119.4

119.5

92.7

90.9

90.8

98.2

107.4

107.1

107.2

111.4

101.8

100.4

99.0

110.2

128.1

*128.2

127.8

125.7

([Includes 963.000 barrels of foreign crude runs. §Based on new annual capacity of 147,633,670 tons
of Jan. 1, 1959, as against Jan. 1, 1958 basis of 140,742.570 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan. (Prime Western Zinc sold on deliv ered basis at centers where freight from East St. Louis exceeds
one-half cent .a pound.
♦Revised

figurie.

Total gross
Guaranteed

public debt
;
obligations not owned by the

Treasury

Total gross public

debt and guaranteed

obligations
outstanding public

Deduct—other

debt

obli¬

gations not subject to debt limitation

under

above

authority

422,602

434.085

$281,732,296

Grand total outstanding
Balance face amount of obligations,

420,743

$284,793,367

$272,294,099

6.267.702

3,206.632

7,705,900

issuable

The Commercial and Financial

(1910)

Securities

Now

Academy Life Insurance Co. (4/27)
filed 310,000 shares of common stock

(par 30

March 31

cents) to be offered for subscription by common stock¬
on the basis of 0.525 shares of additional stock
for each share held of record April 24, 1959 (for a 20holders

Price—To

standby).

day

supplied

by amendment.

additional

working capital. Office—405
Exchange National Bank Bldg., Denver, Colo. Under¬
writers—Boettcher & Co., Inc. and Bosworth, Sullivan
& Co., Inc., both of Denver, Colo.
Proceeds—For

March

filed

$1,500,000

subordinated

convertible

debentures, due 1974. Price—To be supplied by amend¬
ment. Proceeds—For general corporate purposes. OfAce
—404 Fifth Ave., New York. N.

Y. Underwriter—Demp-

Equitable

Research Associates,

Inc.
Dec. 1 filed 400,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
aaid Williams, Widmayer Inc., Washington, D. C.

Securities

Corp', and Eastman Dillon, Union
(jointly); White, Weld & Co.; The First
Corp. and W. C. Langley & Co. (jointly). Bids—
"Expected 'to be received up to 11:30 a.m. (EDT) on
May 5.
'•

American Buyers

Credit Co.
5,000,000 shares of common stock, of which
4,545,455 shares of this stock are to be offered for public
sale at $1.75 per share.
[Shares have been issued or are
issuable under agreements with various policy holders
in American Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix) permitting them

• Arkansas Western Gas Co.
(5/4-8)
April 6 filed $1,000,000 of sinking fund debentures due
1984 ; (convertible until April 1,
1969). Price—To be
supplied by amendment. Proceeds—For property addi¬
tions and improvements
Underwriters—Snow, Sweeney
& Co., Inc. and A. C. Allyn& Co., Inc., both of New

purchase stock at $1.25 per share. Sales personnel
been given the right to purchase stock at $1.25
per share up to the amount of commission they receive
in stock sales made by them.]
Proceeds—For the opeaa:ion of other branoh offices, both in Arizona and in other
:o

East Roosevelt,
,>

American Growth

;'.V

•

-4

Phoenix, Ariz.

4_ 44/ •/,;,/4*-

York.

Un-

Z4,

stock

mon

.*4

(par

one

cent).

Price

—

■,

com¬

10 cents per share.

Proceeds—For mining expenses.

Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.

Fund, Inc.,

Bldg., Denver 2, Colo.

Armstrong Uranium Corp.
Jan, 16 (letter of notification) 3,000,000 shares of

Denver, Colo;
- •
.Vov. 17 filed 1,000,000 shares of capital stock (par one
;ent).
Price—At market,
Proceeds—For investment.;.
Office—800 Security Building, Denver, Colo.% Underwriter—American Growth Fund Sponsors, Inc., 800 Se- >
urity

REVISED

Boston

tfov. 13 filed

Office—2001

• ITEMS

Securities & Co.

ierwriter—None.

sey-Tegeler & Co., St. Louis, Mo.
Advanced

Sachs**&

Underwriter—Goldman,

ADDITIONS

SINCE PREVIOUS ISSUE

;

selling stockholders.
Co., New York.

dates.

* INDICATES

aave

Adam Consolidated Industries, Inc.

Chronicle... Thursday, April 23, 1959

Associated Bowling Centers, Inc. Mow 24 filed 300,000 shares of 20-cent cumulative convertiblei preferred stock (par one cent) and 50,000 out¬

'• Vr4

standing (.'shares of

common stock

(par

one

cent).

"The

vpreferredishare§ are to be offered for public sale for the
Hospital Supply Corp.
April 20 filed 20,610 shares of common stock'(par $2) to / account, of the company and the common shares will
oe offered for the account of a
be offered in exchange for common stock- of Massiilon
selling stockholder. Price
v—To be. supplied by amendment Proceeds-^To acquire
Rubber Co. on the
basis of nine shares of- American
common
for one share of Massiilon common.
Office— 4 new Bowling centers and increase working capital (part
"o/be used in defraying cost of acquisitiony«f stock of
2020 Ridge Avenue, Evanston, 111.
Underwriter—None...
owner of a? Brooklyn (N. Y.)
bowling center./ Office—
American Independent Reinsurance Co. *(4/24)4.
135 Front. SL, 1ST. Y.
-Underwriter/— To be named by
March 25 filed 514,500 shares of common stock, to be
amendment
Offering—Expected in two weeks.
offered for subscription by common stockholders at the
• Atlantic
Research
rate of 1.4 new shares for each one share held on or :;
Corp. /(4/27-30)
March 31 filed 110.000 shares of common stock, of which
about April 24, 1959. Price—To be supplied by amend¬
100,000 shares are t6 be offered "publicly and 10,000
ment. Proceeds—To increase capital and surplusi Office
shares to employees' under company's incentive plan.
—307 S. Orange Avenue, Orlando, Fla." Underwriters—
Price rlr To -be supplied by amendment. Proceeds — To
Francis I. du Pont & Co., Lynchburg, Va., and Goodbody
reduce short-term bank loans and to provide equipment
& Co., New York, N. Y.
for development and production of propellant rockets,
American Investors Syndicate, Inc. v.,
Office—Alexandria, Va. Underwriter—Johnston, Lemon
Feb, 24 (letter of notification)
100,000 shares of com¬
& Co.• Washington, D. C/
'
;
* ;:
mon
stock (par 10 cents).
Price—50 cents per share.'
'Atlas.Investment Co. ----Proceeds—For operation of an apartment hotel; > Off ice
>,
r
Feb. 3 filed 50,000 shares of common voting stock (par
543 International
Trade Mart, New Orleans 12, La.;
^American

Agricultural Insurance Co.
March 23 filed 132,000 shares of capital stock (par $10)j
to be offered in exchange lor stock of Anchor Casualty
Co. at the rate of
share

common

each

for

or.c Agricultural share for each Anchor
(par $10) and 11/10 Agricultural shares

Anchor

$1.75

convertible

cumulative

$10).
Office — 215 Washington
Street, Watertown, N. Y. Underwriter—None.
preferred

stock

Airtek

(par

Dynamics, Inc.

(4/27-5/1)

March 27 filed 150,000 shares of common stock

(no par).
share.
Proceeds—For additional working
capital and for repayment of bank and other loans. Of¬
fice
2222 South Figueroa Street, Los Angeles, Calif.
Price—$8

per

—

Underwriter—S. D. Fuller & Co., New York.

Alabama Power Co.

April 3

(4/30)

filed

$20,000,000 of first mortgage bonds due
1989.
Proceeds
For property additions and improve¬
ments. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers; Eastman Dillon, Union Securities &
Co.; Equitable Securities Corp, and / Drexel & Co.
(jointly); Harrirnan Ripley & Co., Inc. and Goldman,
Sachs & Co. (jointly); Morgan Stanley & Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); The First
Boston Corp.
Bids—Expected to be received up to 11
a. m.
(EDT) on Aprfl 30.
—

Alaska Juneau Gold Mining Co.
29 filed 640,660 outstanding shares

Dec.

supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif.
Underwriter—Lester, Ryons
No public offering expected.

Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200 shares of common stock
of which 1,000,000 shares are to be offered

(par $1),
publicly and

431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued
by DeCoursey-Brewis
Minerals Ltd., the

company's parent

(payment for the
shares by such debenture holders
may
be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares
purchased
for cash

for the 6% debentures of the
parent at the
for each five shares

rate of

one
purchased. Price—$1.25
share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named
by amendment

per

Allied

Publishers, Inc., Portland, Ore.
(letter of notification) 22,000 shares of common
(par $1). Price—$8.50 per share. Proceeds—For

Nov. 28
stock

general

corporate purposes.

Office—665

S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific
Investment

Corp., Portland, Ore.
Alscope Explorations Ltd.
26 filed
1,000,000 shares of capital stock, of
which 700,000 shares are to be offered
publicly in the
Umted States, and
300,000 shares in Canada. Price—ReMarch

toted to the then current market
Stock Exchange
(31 cents
per

ceeds—For

price on the Canadian
share on March 16). Pro¬

properties, drilling costs, working capital and
PurP°ses. Office — 303 Alexandra
Bldg., Edmonton, Canada. Underwriter—None in United
States; Forget & Forget in
Montreal, Canada.

Agricultural Chemical

•

216,093 shares of

three-for-one

fective
market

stock

May 5, 1959).
at

Co.

(5/4-8)

common stock

(follow-

split

expected to become ef¬
Price—To be related to current

time

of offering.
Proceeds—For capital ex¬
Office—100 Church Street, New
York, N. Y.
Underwriter—Hayden, Stone & Co., New York.
'
American Asiatic Oil
Corp.
Nov. 24 filed 100.000,000 shares of
capital stock. Price—
Two cents per share.
Proceeds—To selling stockholders.

penditures.

Office—Magsaysay Building. San Luis, Ermita, Manila,
Republic of Philippines. " Underwriter
Gaberman &
—

Hagedorn.

Inc.. Manila. Republic of
Philippines.
Bl,trite Rubber Co., Inc. (4/29)

March 31 filed 325,000 shares
of common stock

FWce—To be supplied

Louisiana.

Investment

$10).

Co;, Inc., New Orleans,

•

Johnson & Higgins, San Francisco, Calif.
Investment Co.,

,;v-

by amendment.

(no par).
Proceeds —To

Proceeds

—

purchase

Virginia Street,

Statement

effective

Reno, Nev.

Un¬

April 7.

Ltd.

Robert Kamon

is President;

★ Automatic Cafeterias for Industry, Inc.

April

,./j;

(letter of notification)

100,000 shares of com¬
(par 10 cents). Price—$3 per share. Proceeds
—For expansion, equipment and working capital. Office

mon

stock

—450

Westbury Ave., Carle Place, L.

I., N. Y. Under¬

writer—None.,

* American Oil Co., New York
April 17 filed $16,500,000 of participations in the Employ¬

Automatic Canteen Co. of America
March 2 filed 292,426 shares of common stock, of

Savings Plan of the company and its subsidiary com¬
panies, together with 336,730 shares of Standard Oil Co.
(lad.) capital stock which may be acquired pursuant
to the plan.
<: *

ees

which,

the company proposes to issue 126,072 shares to A.M.I.
Inc. for the latter's property and assets, and the re¬

maining 166,354 shares are to be issued upon the exercise
stock options. Underwriter—None. Statement effec¬

tive March

American Telemail Service,

Inc.
17, 1958, filed 375,000 shares of common stock (par
$1). Price—$4 per share. Proceeds—To purchase equip¬
ment and supplies and for working capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos
Treat
&
Co., Inc., of New York.
Change in Name—Formerly
United States Telemail
Service, Inc.
Feb.

Gas

-share.

Queensland, Australia; and for other corporate purposes.
Office—1301 Avenue L, Cisco, Tex.v Underwriter—None.

Inc.

■

Natural

per

filed 4,000,000 shares of common stock. Price—
At par (5614 cents per share).
Proceeds—To purchase
cattle; for improvements: to buy additional ranch in

notes, second trust notes and construction loans.
Company may develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,
Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md,, is Presiient.
■!'
■
'
■

$25

Australian Grazing & Pastoral Co.,
Jan.

rust

Petroleum

—

Office—704

derwriter—None.

Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share., Proceeds — For investment in first

Amican

Co.

ance

American M. A. R. C., Inc.
(5/4-8)
April 13 filed 400,000 shares of common slock (par 50
cents).
Price—To be .supplied by amendment. ' Pro¬
ceeds—For expansion and working capital. Underwriters
—Auchincloss, Parker & Redpath, New York; and Wil¬

American Mutual

Price

additional contribution certificates of Great Basin Insur¬

31.

ic Avnet Electronics Corp.
April 17 filed 175,000 shares of common stock, of which,
75,000 shares are to be offered for the account of certain

selling stockholders. Price—$5.75 per share. Proceeds—
retire presently outstanding loans, and the balance
will be used for working capital and other corporate
purposes.
Offices—70 State Street, Westbury, N. H., and
5877 Rodeo Road, Los Angeles, Calif.
Underwriters —
Michael G. Kietz & Co., Inc. and Amos Treat & Co., Inc.,

Corp. Ltd.

March 23 filed 745,000 shares of capital stock (no par),
of which 500,000 shares are to be sold for the account

both of New

York.

•

of the company, and 245,000 shares by the holders there¬
of.
Price—30 cents per share.
Proceeds—For explora¬

ic Ballard Aircraft Corp.
April 17 filed 300,000 shares of common stock

tion and development program.
Office — 2100 Scarth
Street, Regina, Saskatchewan,. Canada.. Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
.
• ■ ■

Price —$3.25

Ampex Corp.
March 12 filed 204,191 shares of common stock (par $1)
being offered for subscription by common stockholders

★ Baltimore Gas & Electric Co. (5/8)
April 17 filed $19,925,500 of convertible debentures due
July 1, 1974 to be offered for subscription by common

etc.

the

rate

one

new

April 2; rights to expire

for

each* 10

held

April 17. Price—$52.50
per share. Proceeds—For working capital. Underwriters
—Blyth & Co., Inc., San Francisco and New York; and
Irving Lundborg & Co.,; San Francisco, Calif.

•

principal

♦

—

amount

debentures

for

each

used for general corporate purposes,

including proposed
expenditures, and to repay any outstand¬
ing temporary bank loans obtained for the same pur¬
construction
poses.

Underwriter—The First Boston Corp., New York.

Bankers

Fidelity Life Insurance Co.

Feb. 28,1958, filed

258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
and 133,740 shares to employees pursuant to stock pur¬
chase options. Price:—To public, $6 per share. Proceeds—

For expansion and other corporate purposes.
Gs
Underwriter—None
4 £

OffIce-j-At¬

lanta

(5/5)

March

26 filed 75,000 shares of cumulative preferred
(par $100). Proceeds—For property additions and
improvements. Underwriter—To be determined by com- petitive bidding. Probable bidders: Lehman Brothers;.
Blyth & Co., Inc., and Smith, Barney & Co. (jointly);

Proceeds

common stock then held; rights to expire on May 25.
Price—To be supplied by amendment. Proceeds—To be

;

Corp.
March 27 filed 225,000 shares of common stock, of which
112,500 shares are to be sold for the account of selling
stockholders, and 112,500 shares for the account of the
company. Price — To be supplied by amendment.
Pro¬
ceeds—To construct and equip plant space adjoining
present facilities of the company in Newton, N. J.
Un¬
derwriters—R. W. Pressprich & Co. and Riter & Co.,
both of New York. Offering—Expected today
(April 23).

Light Co.

share. '

stockholders of record May 7, 1959, on. the basis of $100
-

Anken Chemical & Film

Arkansas Power &

(par $1).
develop and
embodying the body lift principle,
Underwriter—Weil & Co., Washington, D. C.
per

manufacture aircraft

K^^LJ1011301,316

Underwriter—Assets

common

& Co., Los Angeles, Calif.

—

son,

stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,6C0 shares in the future.
Price—To

Bankers Preferred Life Insurance Co.

stock

Jan. 30 (letter of
/

stock

notiifcation) 100,000 shares of common
(par $1.60), Price—-$3; per share: Proceeds—For
incidental to operation, ofan insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.

.expenses
pany.

Number 5840

Volume 189

The Commercial and Financial Chronicle

...

Underwriters;

XJnderwriter-^Ringsby

Colo.1-

-Inc.r

Denver

•

rations and ~a' partnership engaged in the operation of
195 gasoline stations in Mississippi^ Texas, Louisiana,

•v*;' '*>■*■■

"•

'•

eBargaiivCity, U. S.A.,.Inc.;..(4/24)
|il€sdr 5,000,000 sbares bi eommon stock (no par),
laterreducedtOv500,000->shares^(par$l)oPrice—$9per

Dec. 29

shared Pr<H5eeds^B*6r ,expansion aiid'acqu
or leas¬
ing of new sites.. Offic«T—221(H Walnut/Street^ Philadelr
phia, Pa. Undeiwriter—Bear,, Stearns & Co., New York;
.

Inc.

(par 10
Price^rrAt prevailing- market- price, in the QverProceeds—To

the-Counter- Market.

^Underwiter-f-Npne;,-..^'
Basic Materials, Inc.'

:-t^

•

Bridgehampton Road Races Corp.
Oct. 23 (letter of notification) 15,000 shares of common
stock (par $1) to be offered for subscription by stock¬

7.'.' V'/'/ ■'

fir BeeCham Group Ltd. (England);■/./
.v
»!April 17; filed. American Depositary Receipts for 60,000
ordinary registered shares, peposifery^^paranty Trust/

holders of record Nbv^

£*'*•'J-'

Company of New York. 7 r

•

share for < each

current creditors in

creditors. Address — P. O. Box-506,
Bridgebainpton, L. I., N. ^ Underwriter — None. Offer-

^Britalta.Petroleums;/ Ltd.
filed'l,150,000 shares of capital stock of which

l,000,00(r'sharesare owned'by Wilshire Oil Co. of Texas
stockholders arid 150,000.'shares are issuable upon exerc cise of share^cpurdhase warrants, exercisable on or be¬
•

ISSUE
April 30

and Good"oody& Co.) 514,500 shares

Chadbourn Gotham, Inc.—.

Penn-Texas
(Offering

Corp.

________

Stearns

Utility Appliance .Corp."

;

Puritan

/"•'

April' 27-

filed"

113,079 shares of capital stock (par $1)
purchase of an additional 113.079

and warrants for the

shares, being offered in units, each unit consisting of
one share of stock and one warrant; for subscription bp
stockholders of record April 21, 1959, at the rate of on#
unit for each three shares then held; rights to expire on
May 6 (the warrants carry an initial exercise price of
$20). Price-r-$17 per unit. Proceeds—For working capital
and other corporate purposes. Underwriter—Sutro Bros*
&

Co., New York.

-A* Buckeye Pipe Line Co.
April 17 filed $375,000 of interests in the Thrift Plan for
Employees of Buckeye Pipe Line and other Buckeye
corporations, together With 7,800 shares of Buckeye Pipe
Line common stock which may be acquired pursuant to
the plan.

Jr Business Credit Co.
April 14 (letter of notification) $80,000 of 10-year 10%
subordinated interest bearing promissory notes; $80,000

9% subordinated interest hearing promis¬
notes and $80,000 of three-year 3%% subordinated'

of five-year
sory

interest bearing
of $1,000 each.

promissory notes to be offered in units

Price—All at face amount. Proceeds-**
Continued

_ __

..Common

Corp

Corp.——

l^namics, Inc;-.-'--:4_Z___

Research

-—-Common

—Common

(Monday)

American Agricultural Chemical Co
(Harden,

Corp.—______

-Common

(Aetna Securities

Dalton

(Auchincloss,

.y..

Corp.

$1,000,000 r

*■

.■

Electro

(Charles
„

Piohn

Co.)

Investors

Sulzberger,

(Hallowell,

Kirkland

& Co. and
$125,000

Common

(Bids 11

Co.

Common

Textron, Inc.
As

Woodcock,

Republic

Corp.)

CO.)

(Bids 11:30

Great Northern

Ry.~i—Equip. Trust Cifs.

May 11

$199,5004:
Coil

Southern: Nevada LPnwer; -Co,-f » -:. i.--'Prertrred
;
/' (White, Weld4& Co. ) $1,500,000 v. >

Bros,

and

Earl

Edden

Co.)

$300,000

(Joseph

4././,/AprlL2B CTu«b«liiy) *'■ '
9

Laguna/Niguel- Corp.^+.Units
/ ,(PAine,-: Webber; Jackson &*Ctxrtis) '$9,000,000

•'

Moog Servocontrols,; Incu—-4

'•%-■'

•

^ .i.Common

>*Co.and Blunt.Ellis

(Kidder,. Peabody

»4

____ .

Simmon?) 130,000 shares

Public Service.Co^ ol Colorado---^.

».m.

BDT) :$20,000,000

——Bond* :

■i

Washington Gas Light Co._.^_./__—_—Preferred

[f.t

V>.4:

(Offering to stockholders-runderwritten by The first Boston
Corp. and .Johnstoar Lemon Ss Co.) $10,000,000

Clark,

Walker A*' Sons and

Southern Nevada Power Co.<bld8 9 a.m. PST) *5.500,000
..

and Estabrook As Co.)

May 12

(Tuasday)

Maine Fidelity Life Insurance Co,
—.Common
(Offering to stockholders—underwritten by P. W. Brooks
...

Western

& Co.,

Ino.)

100,000 shares

Inc..

(Lee Higginson Corp.)

J.———

Electric Co.

—Common

(Offering to stockholders—underwritten by Stone 3c Webster
Securities Corp.) 76.494 shares
/

Southwestern Electric Power Co
(Bids

10:30

a.m.

May 13

(Equitable.Securities Corp. and Almstedt Brothers) 6,000 shares

Wometco Enterprises,

325,000 shares

Common

Idaho

(Bids to be invited)

(Tuaaday)
& Ga* Co.-

'-'.4
Dobentaraa

*30.000,000 to *40,000,000

Virginia Electric & Power Co.——
(Bids to bo received)

June 9

Common

$20,000000 to $25,000,000

(Tuesday)

CDT)

Bonds

$16,000,000

Power

1
ajn.

EDT)

(Bids

$15,000,000

to be Invited)

...Bonds

$25,000,000

June 19 (Tuesday)
Improvement Co
(Bids to be invited) $10,000,000

June 23

(Tuaaday)

Northern Illinois Gas Co—
(Bids to be invited) $20,000,000

June 25

(Thursday)

Mississippi Power Co.
(Bids to be invited)

(Wadnaaday)

Co
(Bids 11

Preferred

Power Co.—

United Gas

—Debentures

Common

Kentucky Gas Co

iuna 2
Public Service Electric

100,,000 shares

(Offering to> stockholders—may be underwritten by
Eastman Dillon. Union Securities As Co.) $10,038,700

Paso

(Offering to stockholders) *300,000

Duke

I)i-Noc Chemical Arts. Inc—...
Debentures
(Offering to stockholders—underwritten by
$947,200

Bank of

Bond*

.Common

Central Illinois Light Co

Blair & Co.. Inc.)

(Friday)
Commerce, Washington, D. C._.—Common

Tracerlab, Inc.-

April 29 (Wednesday)

(Thursday)

Generating Co.——JBeada

May 29

Kirkpatrick.

American Biltrite Rubber Co., Inc.
Common
(Goldman, Sachs & Co.)-325,000 shares
.

..
;
; "
j.
Inc.! $1,400,000
Magma PoWer,Co...._
Preferred & Common
4
>
(J. Bartb As CO.) $6,300,000
Miami Ektruders, Inc...
....Common
lAetpa Securities Corp. and Roman As Johnson) $525,000
Pioneer Plastics Corp..
.Common
//.'•
(Reynblds & Co., Inc.) 150,600 shares

(Lee Higginson Corp.

Landstreet

$14,000,000

(Tuasday)

(Bids 11 a.m. EDT) $25,000,000

/.Common

Lytie, Corp. __L

Southern Electric

•.-

Common$4,000,000

——Bands
EDT)

May 25
—...Common

Inc.)

Consolidated Edison Co. of New York, Inc.—Bond*
(Bids 11 a.m. EDT) $50,000,000 to $60,000,000

(Monday)

>WWers,^Inc..——
; (Bertner

'• Corp.) $19,925,500

(Bids noon

May 26

Debentures

(Offering to stockholders—underwritten by The First Boston
;

Co.,

West Penn Power Co.

(Friday)

Baltimore Gas; & Electric Co.—

J—1—1--—-—Common

Investment Corp. of Florida
—.Common
(Aetna Securities Corp. and Roman & Johnson) $1^37^00
.

;-&.c6.,".'Corp.-):704964^iare8':

;

(Wednesday)

May 8

(Monday)

May 25

Florida-Southern Land Corp.-

...Common

(Baddter.>Peabody & C04 jagent)

Preferred

EDT) $7,600,000

(Bids to be Invited) $4,500,000
.

(Thursday)

May 21

(Alkow

(Offering to. stocknolders—underwritten.by Laird

Servonics, Ihc;..4-

———Bond*

Consolidated Natural Gas Co.—
Common
(Offering to stockholders—no underwriting) 821,250 sham

(Tuesday)

ajn.

May 6

Common

(Wadnaaday)

May 20
Interstate Power Co.

and Scherck, Rlchter

$30,000,000

May 5

75,000 shares

Foil Inc/„.__-__._4-.-i--^--

.Common

4—

to be invited) 250,000 shares

(Bids U a.m. EOT) $6,000,000

Arkansas Power & Light Co.

Co. inc.; Merrilly Lynch/Pierce, Fenner &
Smith, Inc.; and Kidder, Peabody & Co.) 50,000 shares

(Lee Higginson

EDT) $2,000,000

Co.—

—Debentures

(Blair As Co., Inc.; G. H. Walker & Co.

(A; G. Becker

Pittsburgh Standard Conduit Co

(Bids

•

-.Co«.————.——Pref«rw4

Gulf States Utilities

Common

(Peter Morgan As Co.) $450,000

Common

——

—Bond*
$3,500,000

EDT)

aJU.

(Bids 11 ajn.
.

(Bear, Stearns & Co. and John H. Kaplan & Co.) 50,484 shares

Maine Public Service

Electric

El Paso

..Common

Seaboard Plywood & Lumber Corp.

Common

Corp. t>f America.—

(Tuasday)

May 19
Electric Co.—

El Paso

Common

Hess, Moyer & Co., Inc.)

Lithium

—Debentures

(Charles Plohn As Co.) $300,000

Common

fco...

—Common
Securities Co., Inc.)

$875,000

(Best Securities, Inc.) $125,000

Corp.,.

Jenks,

(Charles Plohn Ac Co. and Netherlands

Higgins) 400,000 shares

Reon Resistor Corp.—

(Paul C. Kimball & Co.) 105,000 shares

Krupp Manufacturing

Peabody Ac Co.) $4,000,000

Electronics Corp.——

Precon

(Monday)
Power Co—-.—
———-Preferred
May 18

;

(Kidder,

Johnson

(Charles Plohn As Co.) $1,250,000

Common

Commercial

$270,000

Glickman Corp
(Bache & Co.) $33,577,000

Wilson,

and

Crown Self-Service Stores, Inc

...Common

Networks, Inc..

Redpath

Interstate

———.Common

/.Continental Tobacco Co., Inc.—

fH. M; Byllesby & Co., Inc.) 225,000 shares

;

.Common
shares

(Snow, Sweeney & Co., Ino. and A. C. Allyn As Co., Inc.)
$1,000,000

^--i..„^:^-.„,.-:Common

DeJur-Amsco Corp.

216,093

-Common

---1———

(H. M. Byllesby & Co.. Inc. )

Co.)

Arkansas Western Gas Co.—

..Debentures

(Paul C. Kimball & Co.) $500,000

DeJur-Amsco

$300,000

Corp;)

Parker

Corp.____Common

Finance, Inc.—:—

Stone &

American M. A. R. C., Inc

Chemical Milling International

—Debentures
$5,000,000

Florida Power Corp—
———-Common
(Offering to stockholders—underwritten by* Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner Ac Smith, Inc.)
703,485 shares

(Johnston, Lemon & Co.) 110,000 shares
it

(Friday)

May 15

(Friday)

May 4

(8. D. Fuller & Co.) 150,000 shares

Atlantic

Common

—

Billups Western Petroleum Co.

Airtek

stockholders—underwritten by Hie First Boston

Common

;
>v-,(R. K Scheinman & Co.) $200,000

Eastman Dillon, Union Securities & Co.; Hutton &
Pomeroy, Inc. and Granbery, Marache & Co.)
465,000 shares

(Of f eringr to
Inc.

page

140,000 shares

Biophysical Electronics, Inc

! iCommon

stockholders—under written by Boettcher & Co.,
an(TBosworth, Sullivan & Co., Inc.) 310,000 shares

(Thursday)

(The Johnson, Lane, Space Corp.)

(Monday)^

Academy Life Insurance Co._4 -1._

New York, N. Y.

Corp.;

(Dunne & Co.) $625,000

May 1
4

(Offering

Co.) $287,50.0.

Marine Midland

—Debentures

$3,000,000

(William R. Staats Sc. Co.)

Chemical

.^..Common

(Dempsey-Tegelef

& Co., Inc.)

Permanent Filter Corp...

•

...

____4 L .Common,

stockholder&T-^ufiderwritten by Bear,
; ^&eov) l^QOjOOOshares ,
,

May 14

(OffierfrigSito [stockholders—underwritten by R. S. Dickson
•

expansion and working capital. Office
27, N. Y. Underwriter

Seneca Ave., Brooklyn
Sano & Co., 15 William St.,

901

Marine Midland Corp..—,—
-Common
(Offering to stockholders) 442,300 shares

-.—Bond*

(Bids 11 a.m. EDT) $20,000,000
,

Stearns,&.Co.), %4,5Q0t0(>0^.

Proceeds—For

(Thursday)

convertible debentures.

CAXENDAR

Alabama Power Co.—

Ba'^gain-'City, ft-'S.; A'.r--^v-k--r-;-.—r-il^r-tJoininon
(Bcar,

>[i:

March 30'

American Independent; .Reinsurance.. Co~. .Common
( bffcrihg, toT stockholders—imder writ te^by. Francis L du Pont
As. Co.'

payment of all

Current

pay

iU"-,

one new

held; unsubscribed shares

part of claims, at -the rate of one share for each $4
of claims discharged; rights to expire about two weeks
after mailing of offer. Jhrice—$4 p™ share. Proceeds—

NEW

'*" *

1# 1958 on the basis of

■

four

will ~bo offered to

:•"

Billups Western Petroleum Co.r (5 /1*5).
>
April 1 filed. $5,006,000 of 6%, participating debentures
/due May 1; 1984 and> 1 >0GG,OOQ shares of common stock
: to
be offered in: 'units of $10; of"^debentures and. two*
shares of stock which will/not hetransferdble/separately
Vuntil ;NoV. 14, 1959:4 The^ cotnpatty is also "registering
450,000 shares ofecommon/stockvnpiineluded In the units,
:
whichtwillb^^6red-vto>rtS,employeeS:;"'Price—Inthe
*; neighborhood of $22 per unit. Preceeds-^TiTW1 used'In
acquisition! of substantially alk^thei tassets 39 corpo¬

Huntingdon Valley, Pa.

(letter of hotification) 90,000 shares of com¬
mon stock (par 25 cents ).Price-—$2 per share. Proceeds
—For .expansion; to repay bank loans and for working
capital. Office—994 Byberry RcL, Huntingdon Valley,
Pa. Underwriter—Woodcock, Hess, Moyer & Co., Inc.,
Philadelphia, Pa. Offering—Expected this week.

(letter-of notification) 1,20,0,000.shares of com,mon stock (par io cents). Price—25 cents per share.
Proceeds—For- mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo,.. Santa.Fe, N. Mex.
Underwriter— Hyder, Rosenthal & Co., Albuquerque,
Mex.

Brookrldge Development Corp.
(letter of notification) $200,000 of 6% 15-year
Price—At par ($500 per emit).

Dec. 19

March 26

Boohshaft & Fuchs, Inc.,

March'20

April 9

1960 at $5 per share.
Avenue, S. W., Calgary, Canada.

Biophysical Electronics, Inc. (5/1), / Aprh 1 (letter-of notification) 80,000 shares of Common
stock (par. l0 cents). Price—$2.50 per share. Proceeds—
For. general ^corporate purposes. Office—20 East Herman
St., Philadelphia 44, Pa. Underwriter—R. L. Scheinman
& Co., New York.

'seRing Stockholders.
v
1' ■ /"

Office—630 Eighth

fore Dec. 31,

■

March.5 filed 444,246 shares of common stock

cents).

Alabama, Missouri, and Tennessee. Underwriter—The
Johnson/ Lane, .Space Corp.; Savannah, Ga.
-

Basic Atomics

(1911)

September 10
Georgia Power Co.—

$5,000,000

(Thursday)

Bond*

€4

The Commercial and Financial Chronicle

(1912)

% Courtesy Finance Corp.
April 8 (letter of notification) 281,400 shares of common
Price—At par ($1 per share). Proceeds—For in¬
vestment in a wholly owned subsidiary. Office—137 E.
4th South, Salt Lake City 11, Utah. Underwriter—None.

Qbntiniiecl f rom page 63
For

general business purposes and expansion- Office—
Chicago 2. 111. Underwriter—None.

Cemex of Arizona, Inc.

17 (letter of

Nov

(par 25

Underwriter

Denver, Colo.
•

(4/30)

22,500 shares

are

offered

for

ac¬

count, and the remainder for selling stockholders. Price
—To be supplied by amendment. Proceeds—To construct
plant and for general corporate purposes. Office—Branford, Conn. Underwriter—Blair & Co., Inc., New York.

term

Office—3800-34th
C.

Kimball

★ El Paso Electric Co. (5/19)
April 16 filed 20,000 shares of cumulative preferred
stock (no par).
Proceeds—To retire outstanding shortterm

Inc.
April 13 (letter of notification) 891,618 shares of com¬
mon
stock (par five cents). Price—15 cents per share.
Proceeds—For mining expenses.
Office — 319 Peyton

•

March

St., Mt. Rainier, Md. Un¬
Co., Chicago, 111., on a

(par 20 cents) being offered by Trans
Airways, Inc., which owns all of this stock,
outstanding class A stock, and hold¬
ers
of its outstanding
5V2% convertible subordinated
debentures of record April 22, on the basis of one share
to the holders of its

States

filed

Life

74.728

Insurance

of class A stock for each three shares of the class A
stock of Trans Caribbean which such holders either hold
as

stock

Winders,

Inc. (5/11-15)
(letter of notification) 150,000 shares of com¬
mon stock (par 20 cents).
Price—$2 per .share. Proceeds
<—For machinery and
equipment, to retire loans and
notes; for research and development; and working cap¬
ital. Business—-Manufactures components for U. S. Gov¬
ernment and the electronic industry.
Office—40 New
York

Avenue.
Earl

Westbury, N. Y.
Edden

Co..

both

DeJur-Amsco Corp.

(letter of notification) 100,000 shares of com¬
Price—At par (S3 per share).
Proceeds—

stock.

'•an.

Proceeds—For

working

stock.

Price

—

Bherman Street, Denver, Colo. Underwriter—Associated
Securities 412 Main Street, Cedar

Commerce Oil Refining Corp.
Dec. 16,1957 filed $25,000,000 of first
mortgage bonds dut
Sept. 1. 1968, $20,000,00 of subordinated debentures du*
Oct. 1, .1968 and 3.000.000 shares
f common stock to b»
offered ih units as follows: $1,000 of bonds and 48 share*
of stock and $100 of debentures ~~d nine shares of stock

ers.

—

Office—Toronto.
Underwriter—None

Canada,

Price

and

$10.25 per share.

working capital.

Service Co.,

Denver, Colo.,

Underwriter
on a

—

None.

Investment

—14
&

Dorsey Corp.

of common stock

(par $1).

and $11 per share for

150,000 shares
Price—At par for preferred;

common.

Proceeds—-Together with

To selling stock¬

Wall

St., New York.

Co., New York.

Underwriter—Glore, Forgan
Offering—Temporarily postponed.

Federated Corp. of Dtlawari
29 filed $918,000 of 6% convertible subordinated

}ec.

lebentures

due

1968.

The

company

proposes

after

*210,000 of the debentures to purchase the capital stock
if Consumers Time Credit, Inc., a New York
company;
<1442,000 of the debentures in exchange for Consumers
lebentures; and $226,000 of the debentures in exchange
'or the

outstanding 12% debentures of three subsidiaries
Office—1 South Main Street, Port
Chester,

if.Federated.
V.

March 20 filed 32,500 shares of 6% cumulative
preferred
stock, series A, $50 par (with warrants attached for the
purchase of 65,000 common shares) and

—

Eurofund, Inc.
Feb. 26 filed 2,500,000 shares of common stock (par
$1).
Price—$20 per share., Proceeds—For investment. Office

acquis!

best efforts basis.

Proceeds

if Equity Annuity Life Insurance Co.
21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no lesS than $1,500 for single
premium
contracts.
Proceeds—For investment, etc.
Office—2480
16th Street. N. W.. Washington, D. C.
Underwriter—

business, and balance to be

for

working capital.
Jackson, Miss. Underwriter

Underwriter—None.

Office—911

of undeveloped real estate, for
organization
tion of consumer finance

Proceeds—For

Apri)

Diversified Inc., Amarillo, Ttxas
6 filed 300,000 shares of
common stock
(par At
Price—$3 per share. Proceeds—For acquisition

•

—

holders.

/an.

used

share.

Farish Street,

★ Empire Mill work Corp., Corona, N. Y.
April 17 filed 95,000 outstanding shares of common stock.

cents).
i

peT

-None.:

Broadway, Kansas City, Mo.
Under¬
writer—Midland Securities Co., Inc., Kansas
City, Mo.
;

(5 4-8)
April 2 (letter ol notification)
100,000 shares of com¬
mon stock
(par 10 cents). Price—$1.25 per share. Pro¬
ceeds—For general corporate
purposes. Office—607-12th
Avenue, Huntington, W. Va. Underwriter—Best Secu¬
rities, Inc., New York.

Price-

• DIT-MCO, Inc.
April 15 filed 30,000 outstanding shares of common stock.
Price—$10.50 per share. Proceeds—To selling stockhold¬

Nov. 28

if Continental Tobacco Co., Inc.

stock.

equipment, repaymeni
-■
oroperties under option, and ilb**

New York.

by amen*unent. Proceeds
T<
construct refinery. Underwriter—Lehman
Brothers, Ne*
Fork. Offering—Indefinite.
/

Bait Lake City, Utah.

acquisition of

common

April 28;!
1959; rights to expire on or about May 14. Price—To be
supplied by amendment. Proceeds—For ulant expansion
and working
capital.
Underwriter—Blair & Co. Inc.,

Falls, Iowa.

Commercial Investors Corp.
(letter of notification) 900,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Pro¬
ceeds—For investment. Office—450 So. Main
St., Salt
Lake City, Utah.
Underwriter—Earl J. Knudson & Co.

Price—$1

• Di-Noc Chemical Arts, Inc. (4/29)
April 8 filed $947,200 of oV->% convertible subordinated
debentures, due May 15, 1974, to be offered for
subscript •
tion by common stockholders in the ratio of
$100 of de- !
bentures for each 30 common shares held on

$205 per unit
capital.. Office—Suite 421, 901

Price—To be supplied

hy stockholders on the basis of one share of series 3
stock for each three shares of series 1 and/or series 2
stock held; unsubscribed shares to other stock¬
holders.
Rights expire 30 days from offering date.

■-•oramon

Office—333 S

orporate purposes.

sorium, Pa

(par $1) to be offered in units of $200 of deben¬
share

Emerite Corp.
fan. 19 (letter of notification) 250,000 shares of series 3
:ommon stock
(no par) to. be offered for subscription

subordinated

/one 5 filed 350,000 shares of
*r share
Proceeds—For new

Colorado Water & Power Co.
Feb. 25 (letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common
one

Underwriter—Charles Plohn & Co., New York, N. Y.

O«rson Mines Ltd.

Bldg., Denver 2, Colo. Underwriter—None.

stock
—

provide additional working capital and for
general corporate purposes. Underwriter—H. M. Byllesby
& Co., Inc., New York and
Chicago.

For purchase of building, improvements, equipment and
fixtures, and for working capital. Office—730 Majestic

and

networks, Inc.
(4/27-30)
(letter of notification) 100,000 shares of com¬
(par 10 cents). Price—$2.70 per share. Pro¬
ceeds
To purchase test equipment, and for general
working capital. Office—1920 Park St., Syracuse, N. Y.
April 2

—

notes and

Under¬

Electro

mon

debentures due 1974. Price—To be supplied
by amend¬
ment. Proceeds
To retire mortgage loans and bank

Underwriters—Bcrtner

tures

★

DaJur-Amsco Corp. (4/27-4/30)
March 31 filed $1,000,000 of convertible

of New York.

•tock

(4/27-4/30)

inventory, equipment, working capital, etc.

Office—901 S. Lake Street, Farmington, N. Mex.
writer—Investment Service Co., Denver, Colo.

selling stockholders. Underwriter—H. M. Byllesby & Co.,
Inc., New York and Chicago.

if Colorado Ice Skating Center, Inc.
April 16
mon

ceeds—For

March 31 filed 225,000 shares of class A stock
(par $1).
Price—To be supplied by amendmentProceeds — To

April 7

Bros, and

Electric City Supply Co.
April 6 (letter of notification) 300,000 shares of class A
common stock (par 25 cents).
Price—$1 per share. Pro¬

Proceeds—To selling stockholder. Of¬
fices-—160 Central Park South, New York 19, N. Y., and
3600 M St., N. W., Washington, D. C. Underwriter—None.

Co., Inc., New York.

Under¬

Eastman

New York.

debentures

—$10 per share.

writers—The Johnson, Lane, Space Corp. Savannah, Ga.:

Coil

their

Trans Caribbean and its subsidiaries will have the right
to purchase up to 100,000 of the said 350,000 shares. Price

(par

$1.25). Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Office—Atlanta, Ga. Under¬
and Walston &

bidders:

to which

they are entitled upon con¬
(with an oversubscription
privilege); rights to expire on May 22.
Employees of

Co.

common

stockholders

version

construction program.

if El Paso Electric Co. (5/12)
April 16 filed 76,494 shares of common stock (par $5) to
be offered to common stockholders of record
May 11,
1959, on the basis of one new share for each 25 shares
of common stock then held (with an
oversubscription
privilege); rights to expire on May 26.
Price — To be
supplied by amendment. Proceeds—To retire outstand¬
ing short-term notes, and for 1959 construction program.
Dealer-Manager — Stone & Webster Securities Corp.,

Caribbean

Clute Corp.
Aug. 21 (letter of notification) 300,000 shares of commoi
stock (par one cent). Price—$1 per share. Proceeds—To
pay additional costs of construction; and for retirement
of obligations and working capital. Office — c/o John
Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell, Murphy & Co., Inc., Denver, Colo.
Coastal

class

1959

determined

N. Y.

stock

common

Bldg., Spokane, Wash. Underwriter—None.

March

for

competitive bidding.
Dillon, Union Securities &
Co.;
Salomon
Bros.
&
Hutzler;
Kidder,
Peabody
& Co., and White, Weld & Co.
(jointly); Merrill Lynch,
Pierce, Fenner & Smith. Bids—To be received up to 11
a.m.
(EDT) on May 19 at 90 Broad Street, New York,

Transit System, Inc. (Del. )
23 filed 350,000 outstanding shares

and

—

Probable

notes,

writer

best efforts basis.

if Clayloon Uranium Co.,

due

N. Y.

filed

debt.

bonds

by competitive bidding. Probable bidders:
Halsey, Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co.; White, Weld & Co. and Shields & Co.
(jointly) Equitable Securities Corp. and R. W. Pressprich & Co. (jointly). Bids—To be received up to 11
a.m.
(EDT) on May 19 at 90 Broad Street, New York,

Dalton

derwriter—Paul

determined

Finance, Inc. (4/27-30)
$500,000 of 7% subordinated debentures,
due Jan. 2, 1974, with attached warrants for the pur¬
chase of 100,000 shares of class A common stock. Price
—At face amount (in units of $500 each). Proceeds—To
finance making of additional loans and to reduce short-

stock, of which

Corp.,

Proceeds—To retire outstanding short-term notes,
and for 1959 construction program. Underwriters—To be

Inc.
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For working capital. Office—Mearns Bldg., 142-148 N.
Washington Ave., Scranton, Pa. Underwriter—Sano &
Co., New York, N. Y.
9

Securities

1939.

stock

March

Underwriter—Harris

York, N. Y.

if El Paso Electric Co. (5/19)
April 16 filed $3,500,000 of first, mortgage

(par 10 cents). Price—$2 per share. Pro¬
For repayment of loan; purchase of plant ■no-

Cycon,

•

Homes, Inc./: •
>'./' *«•
;
March 27 (letter of notification) 30,000 shares of 60-cent
cumulative convertible preferred stock (no pstr). Price
—$10 per stare
Proceeds — To acquire and develop
additional lands.
Office—2001 El- Cam in o Real, Palo
Alto, Calif.
Underwriters — J. C. Strauss & Co., and
York & Co., both of San Francisco, Calif.
,'y

Denver, Colo.

mon

Inc.

Eichier

March 25

Inc.

the company's

New

equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg
1740 Broadway. Denver, Colo, Underwriter—L. A. Huey

Price—$2 per share. Proceeds
—For general corporate purposes. Office—Los Angeles,
Calif. Underwriter—Aetna Securities Corp., New York.
common

Florence, Colo..

office

(par 10 cents).

April 21 filed 98.946 shares of

Underwriter—None.

stock

—

Research,

(letter of notification) 150,000 shares of com¬
stock (par 50 cents).. Price—$2 per share. Proceeds
—For mining and selling of ore. Office—110 E. Main St.,

Cryogenic Engineering Co.

ceeds

stock, to be of¬

mon

Price—$5 per unit. Proceeds—For establish¬
proposed new stores, to pay accounts payable
(trade), to be applied to extinguish long- and shortterm loans, and the balance to increase working capital.
Office—368 E. 87th Street, Chicago, 111. Underwriter—
Charles Plohu & Co., New York.
"

Milling International Corp. (4/27-29)
(letter of notification) 150,000 shares of com¬

if Chlin Manufacturing Co. of Connecticut,

Eckert Mineral

rommon

common

March 27

Stores, Inc. (5/4-8)
April 10. filed 250,000. units, each unit consisting of one
share of common stock and two common stock purchase

Sept. 22 (letter of notification) 150,000 shares of class

;

fered pursuant to the company's Stock Purchase-Savings
Plan for Employees.

Self-Service

Crown

ment

Chemical

stock

warrants.

Industrial Development Corp.
March 25 filed 37,500 shares of common stock. Price—
$20 per share. Proceeds—For purchase and development
of industrial properties and for working capital. Office
—Chattanooga. Tenn. Underwriter—None. '

mon

also

)

Ave., Binghamton, N. Y.
;

Chattanooga

April 3

Ltd.,

^ Duke Power Co.
April 15 filed 150,000 shares of

March

ferch 20 filed §3,000,000 of 5.90% convertible subordin¬
ated debentures;'due April 1, 1971 (with warrants to
purchase 300,000 shares of common stock) to be offered
for subscription by common stockholders at the rate of
.$100 principal amount,of debentures (with warrant for
purchase of TO shares ) .for each 68 common shares held
us of record April 29. 1959; rights to expire on May 14,
1959." Prices—To be supplied by amendment. Proceeds—
*To provide additional working capital to finance the
company's expanding business and will currently- be
applied to the reduction of short-term bank loans. Un¬
derwriter—-R. S. Dickson & Co., Inc.,; Charlotte, N. C.,
and New York, N. Y.

•

$670,392, respectively.
Office—100 West 10th Street,
Wilmington, Del. Underwriter—Blair & Co., Inc., New
Offering—Expected this week.

York.

stock

general funds of the company. Office—1020 G. Daniel
Baldwin Building. 1005 State Street, Erie, Pa.
Under¬
writer— Summit Securities, Inc., New York, N. Y.
Inc.

retirement ol the latter company's notes and installment
in the approximate amounts of $4,000,000 and

contracts,

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding shares of common
(par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders.
Office—145 Conklin

April 6 (letter of notification) 150,000 shares of common
Price—S2 per share.
Proceeds—To be added to

Chadbourn Gotham,

Securities

Cumberland

—

Regina.

Century Brick Corp. of America

fctock.

•

$1,000,000 of institutional borrowings and other com¬
funds, will be applied for purchase by its subsid¬
of the assets of Dorsey Trailers, Inc. and to the

iary

if Cree Mining Corp. Ltd.
Apiil 1*7 filed 260,000 shares of common stock. Price—
80 cents per share. Proceeds—For exploration program.
Office—2100 Scarth St., "Regina, Saskatchewan, Canada.

notification) 300,000 shares of commot

cents). Price—$1 per share. ProceedsFor working capital.
Address—P. O. Box 1849, 3720 E
32nd Street. Yuma. Ariz. Underwriter—L. A. Huey Co..

etock

Thursday, April 23, 1959

pany

stock.

10 N. Clark Street.

...

Underwriter—None.

Federated
tfov.

Finance Co.

(letter of notification) $300,000 of 10-year 6%
•enior subordinated debentures. Price—At par
(in delominations of $1,000 each). Proceeds — For
working
capital, to make loans, etc. Office—2104 "O" St., Lin-

Number 5840

Volume 189

...

coin, Neb. Underwriters — J. Cliff
Eugene C. Dinsmore, Omaha. Neb.,;

March 16 filed 170,700 shares of common stock.

Price—

$11 per share. Proceeds—For acquisition of land, build¬
ings and fixtures for two new stores; for expansion of

operations of Reid Oil Co., a subsidiary; to reduce debt;
and for working capital. Office—8001 Athello St., San
Diego, Calif. Underwriter—Eastman Dillon, Union Se¬
curities & Co., New York. Offering—Expected this week.

i General Tire & Rubber Co.

Office —1825

April 21 filed 189,143 shares of

Rahel & Co. and

Fed-Mart Corp.

•

(1913)

The Commercial and Financial Chronicle

Investment

stocky represent¬
ing shares which could be purchased at April 15, 1959,
upon the exercise of all options previously granted to
the extent not previously exercised, and upon the exer¬
cise of any options that may hereafter be granted for
shares now available for option, under the company's
Employees' Stock Option Plan.
common

General

Underwriters

Avenue,; Washington, D. G.
Investment
Advisory
Service^

Connecticut

Advisor

—

Industry, Inc.
Dec. 16 filed 200,000 shares of class A common stock.
Price—At par <$1.50 per share). Proceeds—For working
capital. Office—508 Ainsley Bldg., Miami, Fla. Under¬
writer — R. F. Campeau Co., Penobscot Bldg., Detroit,
Mich.

★ Gulf States Utilities Co. (5/19)
April 17 filed 250,000 shares of common stock (no par).
Proceeds—To be used for the repayment of short-term

notes, and the balance to carry forward the "company's
construction program and for other corporate purposes.

Inc.

competitive bidding.
Lynch, Pierce, Fenner &
Smithy Inc. and Lehman Brothers (jointly); The First
Boston Corp.; Carl M. Loeb, Rhoades & Co.; Stone &
Webster Securities Corp. Bids—Expected to be received

to be offered in units of $100 principal amount of deben¬
tures and

one

share of common stock.

Price

—

$110 per

Proceeds—For purchase and development of sub¬

■nit.

April 6

Underwriter—To be determined by

Probable

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents). Price — $1 per share.
Proceeds—For furniture inventory and improved mer¬
chandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark.
General

Florida Builders, Inc.

Dec. 1 filed $4,000,000 of 6% 15-year sinking fund sub¬
ordinated debentures and 40,000 shares of common stock,

shopping site; for new equip¬
project site facilities; for financing ex¬
pansion program; and for liquidation of bank loans and
division land, including
ment

and

corporate purposes. Office—700 43rd
6t Petersburg, Fla. Underwriter—None.

other

St., South.

^ Florida Power Corp. (5/15)
April 16 filed 703,485 shares of common stock (par $2.50)
to be offered for subscription by common stockholders
of record May 14, 1959, on the basis of one new share
for each 12 shares of common stock then held

(with an

oversubscription privilege); rights to expire on June 3,
1959. "Price—To be supplied by amendment.
Proceeds

off $7,000,000 of temporary bank loans, which
were- incurred
to meet construction expenditures, and
the balance will be applied to the 1959 construction

-^-To pay

program.
Underwriters —Kidder,
Merrill Lynch, Pierce,/Fenner &
New York.

;

Peabody & Co. and
Smith Inc., both of
<

—

Florida

Price—To be sup¬
plied by amendment. Proceeds—To retire existing longterm bank loans, and for additional working capital.
Underwriters—McDonald & Co., Cleveland, Ohio; and
Kidder, Peabody & Co., New York. Offering—Expected
today (April 23). '.
rights to expire on or about May 6.

Fluorspar Corp. of America
notification—as amended) 300,000 shares
common stock.
Price—At par ($1 per share). Pro¬
ceeds—For mining expenses.
Office—4334 S. E. 74th

Feb. 5 (letter of
of

Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.
Foundation Investment Corp., Atlanta, Ga.
Jan. 13 filed 231,988 shares of commoi stock to be of¬

subscription by stockholders; unsold portion
to be offered publicly. Price—$12.50 per share. Proceeds
—To repay notes.
Office—515 Candler Bldg., Atlanta,
Ga. Underwriter—None. Statement effective April 2.
fered

for

General Anflino & Film Corp., Now York

shares of common A stock (n#
par) and 1,537,500 shares of common B stock (par $1)
Jan. 14,1957 filed 426,988

Proceeds—To the Attorney General of the

United States

(par $100) and 66,131 shares of 80-cent dividend voting

preferred stock (convertible—par $1). The com¬
to offer one share of the 80-cent dividend
second preferred stock for each share of New Rochelle
Water Co. and one share of its $5 preferred and one
share of the 80-cent dividend second preferred for each
share of New Rochelle $3.50 preferred (including accumufcrted tmpaid dividends from November, 1950). The
offer is conditioned upon acceptance by holders of 80%
of New Rochelle stock. Office—3219 Philadelphia Pike,
Claymont, Del.

fixture and leasehold improvements and other expenses.

Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) on

;

May 13 at Boom 654, 101 Indians Ave., N. W., Washinglion 25. D. C.. but bidding has been postponed.
General Builders Corp., New York
Feb. 26 filed $2,131,000 of 6%

subordinated debentures,

1963, with detachable warrants to pur¬
chase 213,100 shares of common stock (each $100 de¬
benture will be accompanied by a warrant for the
due April 30,

purchase for cash of 10 common shares at $3 per share
at any time beginning Oct. 30, 1959 to and including
30, 1969).
The company is offering holders
of its outstanding common stock and its outstanding
cumulative-preferred stock of record April 8, 1959, the

April

right to subscribe to a total of $1,631,000 of the deben¬
The remaining $500,000 of deben¬
being sold to a group of pur-

tures with warrants.

tures with warrants are
-

also stockholders of the company)
also to purchase certain additional
amounts of -^debentures with warrants if subscription
chasers

who

April 10 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share. Proceeds
—For manufacture, marketing and distributing of auto¬
matic throttle control devices for motor vehicles. Office
—1608 Centinela

Blvd., Inglewood, Calif. Underwriter—
Reilly, Hoffman & Co., Inc., New York.
- ' Godfrey Co., Milwaukee, Wis.
March 23 filed 100,000 shares of common

stock. Price—

supplied by amendment. Proceeds—To provide
inventory and working capital for four new supermar¬
kets in the amount of some $309,400, and to provide
fixtures and equipment with respect thereto in the
amount of $635,000; some $30,000 will be used to provide
equipment and improvements for Crestwood Bakery, a
subsidiary; and the balance will be used for investments
in controlling stock in retailer-franchised Sentry Mar¬
kets and in interim investments in sites and develop¬
be

to resale. Office—4160 North Port Wash¬
ington Rd., Milwaukee, Wis. Underwriter — Taylor,
Rogers & Tracy, Inc., Chicago, 111.

★ Government Employees Corp.
April 7 (letter of notification) an estimated 500 shares
of common stock (par $5): Price—At the market.
Pro¬
ceeds—For the benefit of fractional shareholders result¬
ing

dividend

stock

Office—1021

(4%) declared March 25, 1959.
W., Washington, D. C. Under¬

14th St., N.

writer—None.
-

Government Employees Variable
Insurance Co.

Annuity Life

2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held (1,Nov. 13 filed

334,570 shares are now outstanding); (2) to holders of
common stock
(par $1.50) of Government Employees
Life Insurance Co., on the basis of IV2 warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of Vz warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of Stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
/converted into common stock prior to the record date,
a total of 164,733 common shares would be outstanding.
Price—$3 per share. Jjroceeds—For capital and surplus.
Office—Government anployees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.

rights are not exercised in at least the amount of $500,000. Subscription warrants will expire on May 11, 1959.
Price
$100 per unit. Proceeds — To repay promis¬
sory notes, and the balance, if any, will be added to
working capital, to be used in part to reimburse the
company's treasury for payments made upon the acqui¬
sition of land and as working capital for such building

Great American

—

March 30

Realty Corp.

filed 900,000 shares of class

A stock (par 10

Price—To be supplied by amendment. Proceeds
—For working capital.
Office—15 William Street, New
York. Underwriter—To be supplied by amendment.
cents).

Gridoil Freehold

projects as the company may undertake. Office—2413
Third Ave., New York, N. Y. Underwriter—None. State¬
ment effective April 2.

Leases Ltd.

563,600 shares of common stock to be of¬
exchange for $2,818,000 of 5Vfe% convertible

Feb. 5 filed

fered

sinking fund redeemable notes, series A, due July 1,1976,
on the basis of 200 shares for each $1,000 note.
Office—

General Merchandising; Corp., Memphis, Tenn.

"A" common stock
(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
writer— Union
Securities
Investment Co., Memphis,
Feb. 18 filed 250,000 shares of class

330 Ninth Avenue,

West, Calgary, Canada.

Growth Fund of America, Inc.
Feb.
w

cents).

250,000 shares of common stock (par 10
Erice-^At. market. Proceeds—For investment.

filed

:i;

Heliogen Products, Inc.
Oct. 22 (letter of notification) 28,800 shares of commoa
stock (par $1).
Price—$5 per share. Proceeds—Far
payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
8, N. Y. Underwriter—Albion Securities Co., Suite 1512>
11 Broadway, New York 4, N. Y.
Hickerson Bros. Truck Co.,

Inc.
(letter of notification) 285,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
pay existing liabilities* for additional equipment; andt
for working capital.
Office—East Tenth Street, P. Q.
Box 68, Great Bend, Kan.
Underwriter—Birkenmayir
& Co., Denver, Colo.
\
r'f
~Y

March 11

Highway Trailer Industries, Inc.
24 filed 473,000 outstanding shares of common
stock (par 25 cents). Price—At prices generally prevail¬
ing on the American Stock Exchange.
Proceeds — To
selling stockholders. .Office — 250 Park Avenue, N. Y.

Nov.

Underwriter—None.

;

Hoffman Motors Corp.
March 9 filed 260,000 shares of common stock (par $1),
of which 250,000 shares are to be publicly offered ana

Price—$10 p«r
Proceeds—To selling

10,000 shares to officers and employees.
shares to public; $9 to

stockholder.

employees.

Underwriter

For public offering: Van

—

Alstyne, Noel & Co., New York.
indefinitely.

Offering—Postponed

Home-Stake Production Co., Tulsa,

ments prior

(who are

Glide Control Corp.

have agreed

Tenn

Underwriter

N. Y.

writer—None.

(4/27-30)
3,357,700 shares of common stock. Price
share. Proceeds — For properties, furniture,

Co., New York, N. Y.

the rights.
Price — At par. Proceeds — To repay
debts, acquisition of investments, and for general pur¬
poses. -Address—P. O. Box-348, Albany, N. Y. Under¬

Qlickman Corp.

—Bache &

cise

March 13 filed

Office—565 Fifth Ave., New York,

•

Development Corp.
(letter of notification) 22,820 shares of non¬
voting convertible preference stock (par $12) to be
offered for subscription by stockholders on the basil
of one share of convertible preference stock for each
10 shares of common stock held on or about Nov. 1,
1958. Stockholders will have 45 days in which to exer¬

★ Georgia-Carolina Investment Corp.
April 17 (letter of notification) 150,000 shares of class
A common stock (par $1)
and 100 shares of class C
common stock (par $1). Price—$1.10 per share. Proceeds
—For investment. Office—Suite 611, Marion Bldg., Au¬
gusta, Ga. Underwriter—None.

per

Heartland

Oct.

Genisco, Inc., Los Angeles. Calif.
April 6 (letter of notification) 3,400 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—To selling stockholder. Underwriter—Lester,
Ryons & Co., Los Angeles, Calif.

Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton

Corp.

pany proposes

—$10

Merrill

★ Ha lex, Inc.
April 2 (letter of notification) $70,000 of four-year 5%
debentures, 2,300 shares of 4% preferred stock (par $10)and 10,000 shares of common stock (par $1). Price—Ot
debentures, at face amount (in denominations of $100):
of stock, both at par.
Proceeds—For fixed assets and.
working capital. Office—310 E. Imperial Highway, El
Seguhdo, Calif. Underwriter—None.

second

Steal

Corp.
March 31 filed $2,135,700 of convertible subordinated
debentures due May 1, 1971, to be offered for subscrip¬
tion by common stockholders at the rate of $100 of
debentures for each 50 shares of stock held on April 17;

Waterworks

bidders:

May 19.

March 31 filed 16,131 shares of $5 voting preferred stock

Florida-Southern Land Corp. (5/25)
April 13 filed 2,000,000 shares of common stock. Price
$2 per share. Proceeds — For construction of motel
units and other facilities.
Office — Tom's Harbor, Fla.
Underwriter—Alkow & Co., Inc., New York.

Manage¬
~
V-v

Washington, D. C. ' Underwriter—Investment
ment Associates, Inc., Washington, D. C.
>'■

mon

Finance For

Okla.

116,667 shares of common stock (par $3)„
Price—$6 per share. Proceeds—For working capital and
general corporate purposes. Office — 2202 Philtowtr
Bldg., Tulsa, Okla. Underwriter—None.

Nov. 5 filed

★ Hupp Corp.
filed 468,000 shares of common stock, to be
employees of the company and its subsidiaries
who hold options to purchase Hupp stock granted under
the company's Incentive Stock Option Plan.

April 20

offered to

Idaho Power Co.

April

(5/13)

filed $15,000,000

of first mortgage bonds dun
partial payment of short-

1989. Proceeds—To be used for
term bank loans made for

facilities.

construction of newi operating

Underwriter—To be determined by

competi¬

bidding. Probable bidders: Halsey, Stuart &
Inc.; Blyth & Co., Inc.; Lazard Freres & Co. and
tive

Co.
Thn

(jointly); Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Smith, Inc.; Equitabln
Securities Corp.; Kidder, Peabody & Co. and Whit^
Weld & Co. (jointly). Bids—Expected to be received up
to 11 a.m. (EDT) on May 13.
*
.
First Boston

Corp.

Idaho Power Co.

April 1 filed 150,000 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To bo
used for partial payment of short-term bank loans mado

operating facilities. Underwriter#
Lazard Freres & Co., Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Smith, Inc., all of New York.
;

for construction of new

—May be Blyth & Co., Inc.,

Imperial Growth Fund, Inc.
of common stock. Price—Aft
market. Proceeds — For investment.
Office — 60 Mar¬
March 2 filed 600,000 shares

quette Ave., Minneapolis, Minn. - Underwriter —
neapolis Associates, Inc., Minneapolis, Minn.
-

Min¬

Indiana Steel Products Co.

Feb.

filed

42,193 shares of common

stock (par $1)

being offered for subscription by common stockholders
at the rate of one share for each seven shares held a»

April 1, 1959; rights to expire on April 17, 1959.
Price—$37 per share. Proceeds—For construction, ma¬
chinery and equipment, and to provide additional funda
for working capital and other corporate purposes. Office
—405 Elm St., Valparaiso, Ind. Underwriter—Kalman &
of

Co., Inc., St. Paul, Minn.

►

Continued

on page

The

(1914)

Continued

to repay bank loans, for working capital
other corporate purposes. Office—621 South Spring

erties,

jrom 'page 65

Industrial Minerals Corp.,

out

Los Angeles, Calif.
son & Curtis, New

and
Un¬
Co.

D. C., on a best efforts basis. State¬

Underwriter—Paine, Webber, Jack¬
York and Los Angeles.

share.

None.

—

None.
-

International

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, two-

3% per unit; series C, $1,000,000, four-year 4% per
unit; and series D, $3,500,000, 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds — For workinj
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
year,

^ International Railroads Weighing Corp.
April 16 (letter of notification) 82,626 shares of com¬
stock (par $1) to be offered for subscription by

mon

common

stockholders at rate of

four shares
research

and

Office—415

one

new

share for each

held.

Price—$3 per share. Proceeds — For
development costs and working capital.

Spruce St., Hammond, Ind.

None.

Underwriter—

International

Tuna Corp.
(4/20-24)
(letter of notification) 175,000 shares of class
stock (par 50 cents).
Price — $1 per share.
Proceeds—For equipment and working capital.
Office
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.,
Gulfport, Miss.'
common

Interstate Power Co.

Weld & Co.

(EDT)

Bids

—
Expected to be received
May 20.

ceeds—For construction program.

to 11

Underwriter—Kidder,

Peabody & Co., New York.
Investment

Corp. of Florida (5/25-29)
April 13 filed 275,000 shares of common stock. Price—
$4.50 per share. Proceeds—For acquisition and develop¬
of

ment

land

Florida.

Office —1750

East

Sunrise

Boulevard, Fort Lauderdale, Fla. Underwriters—Aetna
Securities Corp., New York; and Roman &
Johnson, Fort
Lauderdale, Fla.
•

Investors Commercial Corp.
(4/27-30)
April 6 filed 105,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds—To selling stock¬
holders.

Office

180

Randolph St., Chicago, 111.
Underwriter—Paul C. Kimball & Co., Chicago, 111.
Investors Funding Corp. of New York
Feb. 17 filed $500,000 of 10% subordinated debenture!
due July 31, 1964, to be offered in units of
$1,000. Price
—At 100% of principal amount. Proceeds—For invest¬
ment.

—

Office—511 Fifth

Ave., New York, N. Y.

Under¬

writer—None.

Keystone Custodian Funds, Inc.
March

filed

90,600 shares of class A common stock,
of which 37,600 shares are to be offered from time
to
time by the Fund, pursuant to the terms of its Em¬
ployees Stock Option Plan, and the remaining 53,000
shares will be sold for the account of a
selling stockbolder. Price—To be supplied by amendment. Proceeds
—-To

account of

selling stockholder.

Underwriter—Clark, Dodge &

Co., New York.
Kratter Corp., New York
March

filed

2,719,950

class

stock

and

300,000 shares of class B stock, of which a maximum oi
2,457,450 shares of class A stock are to be offered in ex¬
change for units in certain limited partnerships. Com-4
pany sold on March 14 a total of 250,000 class A shares
at $10 per share, and on March 4 a total of
300,000 class
B shares at $1 per share to certain
persons; the re¬
maining 12,500 class A shares are to be issued to
Ginaba, Ltd. Office—521 Fifth Avenue, New York, N. Y.
Underwriter—N one.

• Krupp Manufacturing Co. (4/27-5/X)
April 3 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1.25 per share. Proceeds—
To selling stockholders.
Office —4th & Mill
Quakertown, Pa. Underwriters—Hallowell,

Jenks,

Kirkland

Co.

Streets,
Sulzberger,

and

Woodcock, Hess, Moyer &

Co., Inc., both of Philadelphia, Pa.
•

Laguna Niguel Corp. (4/28)
April 1 filed 900,000 shares of class A stock (no par)
and 900,000 shares of class B stock
(no par) to be of¬
fered in units, each consisting of one class A
and one
class B share. Price—$10 per unit. Proceeds—To make
payments in connection with acquisition of certain prop¬

poses.

Lithium Corp. of America (4/27-29)
March 31 filed 50,484 shares of common stock, of which

sold to the underwriters in February,
1959. Price—At prevailing market price on the American
Stock Exchange at time of offering. Proceeds — For
working capital. Office — Minneapolis, Minn.
Under¬

ic Lockheed Aircraft Corp.
April 20 filed 342,600 shares of capital stock, which may
be purchased pursuant to the company's Employee Stock
Plan.

Telephone Co.
(letter of notification) 1,562 shares of

Feb. 11
stock

common

(no par) to be offered for subscription by stock¬
one new share for approximately

75.1729

March

held

the

17, 1959; rights to expire

business

May 15, 1959. Price
—$32 per share. Proceeds—To reimburse the treasury ^
Office—203 W. Ninth St., Lorain, Ohio. Underwriter—
on

None.
*

April 1 filed 250,000 shares of

common

stock

(par $1).

Price—To be supplied by amendment. Proceeds—To in¬
inventories and for general corporate purposes.

Office—825 Bronx River Ave., New York, N. Y. Under¬

writers—Kidder, Peabody & Co. and Model, Roland
Stone, both of New York..

Mining Corp.
common stock.

Price—$}V
per share.
Proceeds — For the acquisition of properties
under option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur- i
poses.
Offices—Wilmington, Del., and Emporium, Pa
.

*Lytle Corp.

(5/11-15)
April 16 filed 100,000 shares of common stock. Price—
At a maximum price of $14 per share. Proceeds—To re¬
tire bank loans and for general working capital. Under¬
writers—Joseph Walker & Sons, New York; and Clark,
Landstreet & Kirkpatrick, Inc.,
Nashville, Tenn.

Magma Power Co. (5/11-15)
April 3 filed 100,000 shares of 6% convertible preferred
stock (par $10) and 500,000 shares of common stock
(par 10 cents) to be offered in units consisting of one
preferred

unit.

gram;

share.

and five common shares.
Price—$63
and exploration pro¬
for working capital,, and general corporate
Office—Virginia & Truckee Bldg., Carson
Underwriter—J. Barth & Co., San Francisco,

Proceeds—For drilling

and

purposes.

City, Nev.
Calif.

• Missouri

•

Maine Fidelity Life Insurance Co. (4/29)
March 30 filed 100,000 shares of capital stock
(par $1.50)
to be offered for
subscription by holders of

outstanding

stock at the rate of

one

new

share for each two shares

April 22, 1959; rights expire on or about May
be supplied by amendment.
Proceeds—
To increase capital and
surplus.
Office—83 Exchange
Street, Portland, Maine. Underwriter — P. W. Brooks &
Co., Inc., New York.
19.

Price—To

ic Marine Midland Corp. *(5/14)
April 17 filed a maximum of 465,000 shares of common
stock (par $5) to be offered for
subscription by common
stockholders of record May 12, 1959, on the basis of one
new share for each 20 shares then
held, rights to expire
on
June 1.
Proceeds—It is anticipated that $9,000,000
will be used to pay an outstanding bank loan due
Sept.
30, 1962, and any balance will be used for general corpo-r
rate purposes. Underwriters—The First Boston
Corp. and
Eastman Dillon, Union Securities &

Co., both of New
York; Schoellkopf, Hutton & Pomeroy, Inc., Buffalo,
N. Y.; and Granbery, Marache &
Co., New York.

Mary Carter Paint Co.
30 (letter of notification) 37,500 shares of

March
mon

stock

(par $1)

of which

25,000

com¬

are-being

offered by the company, out of authorized but unissued

stock, and 12,500 shares are being offered by John F.
Crosby, Spring Lake, N. J. Price—$8 per share. Proceeds
—For payment of outstanding loans and
working capi¬
tal, and to selling stockholder. Office—Gunn Highway
at Henderson
Rd., Tampa 7, Fla. Underwriter—W. W.
Schroeder & Co., New-York 5, N. Y.
• Mayfair Markets
April 13 (letter of notification) 5,000 shares of pre¬
ferred stock (par $50) and
5,000 shares of common stock
(par 1) to be offered in units consisting of one share
of preferred and one share common.

holders

held.

stock.

common

Price—$1
working capital,

additional

Springs. Ark.

Underwriter—None.

Utilities Co.

the

basis

one

for

each

Price—To

be supplied by amendment.
Proceeds
general funds of the company. Office—400 Broad-*5

—For

Cape Girardeau, Mo.
Underwriter
& Co., St. Louis, Mo.-

—

Edward

D.¬

.■>.

ic Molybdenum Corp. of America
/*/;.
April 15 filed 97,364 shares of common stock, reserved
for issuance upon exercise
of outstanding Restricted
Slock Options which were issued to
key personnel pur¬
suant to

Executive Employees' Stock Option

Montana

July

Plan.

Power Co.

filed

stock

price

100,000 shares of

common

stock

(no

par).

will

be offered only to bona fide residents
Price—To be related to the current market
the New York Stock Exchange. Proceeds—To¬

gether with other funds, to carry on the company's con¬
struction program through
1959.
Manager-Dealers—'
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth
Co.; Inc. Offering—Indefinitely postponed.
•

Moog Servocontrols,

Inc.

(4/28)

common stock, of which
being sold by. certain selling stock¬
60,000 shares by company (10,000 shares
to employees and
50,000 shares to public). Price—To be
supplied by amendment. Proceeds—For working capi-'

70,000

holders

Mortgage Corp. of America
April 10 filed $1,000,000 of 4%% collateral trust
notes,
May 1, 1969-79. Price—100% of principal amount/

due

Proceeds—For repayment of loan.

Street,
•

Baltimore,

share for each four shares held of record
April
on

April 24 (with

oversub¬

Office—100

Underwriter—None.

St.
1

Paul
-

April 6 filed 1,014,300 shares of common
stock, to be of¬
fered in exchange for all but not less than
98% of the'
outstanding common shares of Huron Portland Cement
Co. in the ratio of 7/10 of
each share of Huron stock.
'

National Life &

March
to

filed

offered

share of National stock for

Offer will

250,000 shares of
to

expire

May 19.

Casualty Insurance Co.

holders

common

capital

stock

certain

of company's life
prior to Dec. 31, 1955,
and to certain employees.
Price—$4.44 per share. Pro¬
ceeds—To increase capital and surplus.
Office — 2300
North Central Ave., Phoenix, Ariz. Underwriter—None.

policies issued

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per

share). Proceeds—For organizational ex¬
first three months' operational expenses. Of¬
Blvd., Los Angeles 17, Calif. Under¬
writer—Waldron & Co., San Francisco
penses and

fice—1250 Wilshire

4, Calif.

•

Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common,
stock (par 50 cents). Price—$2
per share. Proceeds—To
acquire fishing tools for leasing; and for working capital/
Address—P. O.

Box

672, Odessa, Texas. Underwriters—'

To be designated.
New York

Shipbuilding Corp.

March 3 filed 621,353 shares of common stock. Price—
To be supplied by amendment. To be offered
from time,
to time either on the New York Stock
Exchange at

price,

prevailing at time of sale or by public or
at related prices. Proceeds — To Merritt
Scott Corp., the selling stockholder.

private sale

Chapman &
Underwriter—None.-

Statement effective
New
March

York
20

offered

mon

March

26.

Shipbuilding

Corp.

filed

83,334 shares of common stock, to be;
exchange for common stock of Higgins, Inc.,:

at the rate of

one

share of New York

for each 24 shares of

Higgins

Shipbuilding

com-'

common.

ic Northwest Natural Gas Co.
April 17 (letter of notification) an estimated 19,495 shares
of common stock (par
$9.50) to be offered to employees
through a stock purchase plan. Price—At 92% of pub¬
lished bid price quoted first
day of each month by Port¬
land, Ore., NASD, but not less than the par value of the
S.

Mergenttialer Linotype Co., Brooklyn, N. Y.
March 17 filed 116,541 shares of
capital stock, being
offered for subscription by stockholders at the rate of

Md.

National Gypsum Co.-

stock.

Underwriter—None.

are

and

tal. Office—East Aurora
(Buffalo), N. Y. Underwriters
—Kidder, Peabody & Co., New York; and Blunt Ellis
& Simmons, Chicago, 111.
*■
»
:

Blvd., Los Angeles, Calif.

6, 1959; rights to expire

For

April 14 (letter of notification) 10,154 shares of common
(par $1) to be offered for subscription by stock¬

Price—$60 per unit.
Proceeds—To liquidate obligations. Office—4383 Bandini

one new

—

stock

insurance

held

Proceeds

iff ice—Siloam

March 30 filed 130,000 shares of

Sept. 29 filed 350,000 shares of

Underwriter—None.

Avenue

)f Montana.

crease

per

The

Loral Electronics Corp.

37.th

holders at the rate of
each

Underwriter—None.

Dec. 23 filed 602,786 shares of

way,
Jones

Lorain

Millsap Oil & Gas Co.

were

writers—Bear, Stearns & Co. and John H. Kaplan & Co.

Office—7575

per

apolis, Minn.

•

Purchase

leans.

17 filed

Price—$3.75

derwriter—None.

18,984 shares

bank

Development Corp.
500,000 shares of common srock (par $1).
share. Proceeds—For investment pur¬
Office—1404 Northwestern Bank Bldg., Minne¬

March

selling stockholder. Un

Underwriter:
/ ; ' ";;
?

Midwest Technical

be sold for the

•

Miami, Fla. Underwriters—Aetna Securities Corp., New
York; and Roman & Johnson, Fort Lauderdale, Fla, '
r

Mound

LuHoc

Interstate Power Co. (5/18-19)
April 7 filed 80,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment. Pro¬

•

Inc.; 750,000 shares will be used for the exercist
option by the company to purchase from Bi*
Trail Corp. some 3,784.9 acres of land on oi
before May 1, 1959; and the remaining 120,000 shares arc

ment

& R.,

(5/20)

April 7 filed $6,000,000 of first mortgage bonds due 1989.
Proceeds — To repay bank loans and for construction
program. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;,
Blyth & Co., Inc. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner & Smith, Inc.; Kidder,
Peabody & Co. and Lehman Brothers (jointly); White,
a.m.

of common stock, of whict
2,622,000 shares were issued in exchange for all oJ
tne common stock of Desser & Garfield, Inc., and D. G

•

April 3

purposes.

ic Miami Extruders, Inc.
(5/11-15)
'
April 17 filed 175,000 shares of common stock, Price—$3
per share.
Proceeds—To be used for the purchase of
equipment, for increased inventories, and for the retire-^

Jan. 29 filed 3,492,000 shares

^ Integrity Finance Corp.
April 9 (letter of notification) 50 shares of class A com¬
mon stock
and 9,000 shares of class B common stock.
Price—Of class A, $150 per share; of class B, $15 per
share.
Proceeds
For working capital.
Office —1807
W. Fourth Street, Wilmington 5, Del.
Underwriter—

corporate

—None.',

Underwriter—None.

Lefcourt Realty Corp.

ic Information Systems, Inc., Skokie, III.
April 21 filed 170,000 shares of common stock to be of¬
fered for subscription by common stockholders of Panellit, Inc., at rate of one new share for each three Panellit
common shares held of record May 15, 1959. Price—$3.50
per share. Proceeds—To pay notes, for research and de¬
velopment costs; and working capital. Underwriter—

and be used for

pany

Co., Inc., Arnett, Okla.
shares of common stock. Price—$i
Proceeds—For machinery and equipment anc

exploration purposes.

Thursday, April 23, 1959

privilege). An additional 29,900 shares are
being or will be offered pursuant to the -company's
Employees Stock Option Plan. Price—$45 per sharei
Proceeds—To be added to the general funds of the
com-:

Laure Exploration

per

...

scription

St.,

Nov. 18.

ment effective

Dec. 29 filed

and

Dec. 23 filed 400,000

Washington, D. C.

July 24 filed 6UU,UUU shares of common stock (par
cent). Price—$1 per share. Proceeds—To develop
operate graphite and mica properties in Alabama.
derwriters—Dearborn & Co. and Carr-Rigdom &
both of Washington,

and Financial Chronicle

Proceeds—For capital expenditures.
Sixth

• Norwich Pharmacal Co.
April 20 filed 70,000 shares of
number of shares

granted

stock, being the
recently have been'
Key Employees'

common

to which options

be granted under the
Stock Option Plan of the
company.
or

Office—920-

Ave., Portland, Ore. Underwriter—None.

may

Number 5840

Volume 189

Oak

Corp., New York
class A common stock
(par 10 cents) and 1,917 shares of class B common stock
(par 10 cents). This covers the transfer of certain shares
pursuant to option agreements. Price — At over-thecounter market prices. Underwriter—None.

mingo Plaza, Hiaieah, Fla.

Inc.
•
April 6 filed 91,809 shares of class A stock (par $1) and
10.201 shares of class B common stock (par $1) ' to be

Buildings of America,

units of nine class A shares and one. class B

offered in

Permanent"Filter Corp.

per unit.
Proceeds—To be available
in real estate syndicates and other real
Office—9 Clinton St., Newark, N. J. Underwriter
—None/
-,
'
' /

common

L20,000 shares are
and 20,000 shares for account of selling stockholder. *
Price—To be supplied by amendment. Proceeds — For
land and buildings and working capital. Underwriterpany

estate.

William R. Staats &

Co., Los Angeles, Calif.

subject to

(of which 8,000 shares are to be offered to employees).

Price—To

an exchange offer between this corporatioi
Rubber, Inc., and O. K. Ko-op Rubber Weldinj ,
System, on an alternative basis. Proceeds—Qf the publii J
offering, will be used for additional working capita
arid/or to service part of the company's debt. Office551
Rio Grande
Ave;, Littleton. Colo.
UndorwriterNene
.Statement effective April 13.
""I; 1.1
.;,
/

& Co., New

Oppenheimer
Ozark Air
March
eral

Lines, Inc.
of notification)
stock

common

tion

class

and/or
trust

certificate,

common

one

to be offered

(par $1)

holders of class A

59,825

class B

and

stock

• Precon Electronics Corp.
(5/18-25)
April 6 filed 175,000 shares of common stock (par 75
cents). Price — $5 per share. Proceeds — For working
capital; to reimburse the predecessor for certain devel¬
opment expenses; for inventories and work in process;
and other general corporate purposes.
Office—120 E.

for subscrip¬

common

gen¬

stock
voting '
41st St., New York, N. Y.
stock for

common

evidenced

share ol' general

each 20 shares of cl. A and cl. B

—

York.

(letter

York.

Pittsburgh Standard Conduit Co. (4/27-5/1)
April 9 filed 75,000 shares o£ capital stock (par $5).
Price
To be supplied by amendment.
Proceeds — To
repay sort-term bank loans, for working capital and
other corporate purposes.
Underwriter—Lee Higginson
Corp., New York.

Fund, Inc. ;
•- • ''
..;
Dec. 5 filed 100,000 shares ol/capital stock.
Price—n
marker (aboui SlU per share).
Proceeds—For inves'
men!
Office—25 Broad St., New York.
Underwriter
Oppenheimer

;

be supplied by amendment. Proceeds — To
selling stockholders. Business — Producer of decorative
laminated plastics. Underwriter—Reynolds & Co., Inc.,
New

stock held,

Underwriters—Charles Plohn
Securities Co., Inc., both of New

& Co. and Netherlands

Price

York, N. Y.,

—34.25 per share,to stockholders: $4.75 to public. Proceeds

purchase additional flight and groundequipment
and for working capital. Address—P. O. Box 6007, Lam¬

South

(Union of

Africa)

April 17 filed American depositary receipts for 50,000
Field, St. Louis 21, Mo. .Underwriter—None, but
ordinary registered shares. Depositary—Guaranty Trust
Newhard, Cook and Co. and Yates, Heitner & Woods,
Co. of New York.,
*
both, of St. Louis, Mo., offered to purchase the unsub- '
scribed; shares,^ •
★ Pressed Metals of America, Inc.
^V*.'/ '•'./.> 1
v; { *>..y
-,7^ April 17 filed 90,000 outstanding shares of common stock.
/: - Paddock of California
/•/'; *■''
Price
Related to the current market price on the
March 30 filed 51,847 outstanding shares of common
American Stock Exchange. Proceeds—To selling stock¬
stock (par $1) to be offered "only to stockholders and
holders. Office—Port Huron, Mich.
Underwriter—None.
directors of The Refinite Corp. and will not be offered
Producers Fire & Casualty Co., Mesa, Ariz.
to the general public.'"
Price—$3 per share. Proceeds—
March 31 filed* 400,000 shares of common stock to be
To selling stockholders, The Refinite Corp. Office—8400
offered for subscription by holders of stock purchase
Santa Monica Boulevard, Los Angeles, Calif. Underwrit¬
rights acquired in connection with life insurance policies
er—None.
issued bv Dpoendable Life Insurance Co. and to certain
• Paramount Mutual Fund, Inc. 1 ;
agents and brokers of Producers Fire & Casualty Co.
Jan. 2 filed 300,000 shares of capital stock.
Price—Min.
Price—$5-per share.
Proceeds—For working capital.
mum purchase of shares is $2,500.
Proceeds—For invest
,
Underwriter—None.
ment
Office—404 North Roxbury Drive, Beverly Hill*
Prudential Enterprises, Inc.
Calif.
Underwriter—Paramount Mutual Fund Manage
Jan. 15 (letter of notification) 200,000 shares of common
ment Co, Statement effective April 14.
stock (par one cent) of which 170,000 shares are to be
• Pearson
sold by the company and 30,000 shares by a selling
Corp. (4/30)". J*,'
" <
March 30 (letter, of notification)'. 175,000 shares of com¬
stockholder, / Price — $1.50 per share.
Proceeds — For
mon /stock (par 25 cents).
general expansion; and working capital.
Office—1108
Price—$1 per share. Proceeds
—To repay short-term/loan
16th Street, N.W., Washington 6, D. C.
Underwriterand for working capital.
Office—1 Constitution St., Bristol, R. I. Underwriter—
John C. Kahn Co., Washington, D. C.
R. A. Holm an & Co., Inc., New York, N. Y.
Public Service Co. of Colorado (4/28)
bert

—

Peckman

May

Price —At
•

•

riter

market.

Pasadena, Calif.
of common stock (par $1

Proceeds—'For

/li7Vostoi>. InvcsJuients

investment.

1989.

Under

Corp.. Pasadena.-;Calif

Perm-Yexas Corp., New York City

March

one

(4/24)
1,500,000 shares of common stock to be
for subscription by common stockholders at rate

offered
of

20,000 shares

filed

new

share for each four shares held

of record

1959; rights to expire on May 8,
1959.
supplied by amendment. Proceed^ — To
purchase additional stock of Fairbanks, Morse & Co. and
for repayment of loans. Underwriter — Bear, Stearns &
Co., New York.
'
^

April

24,

Price—To .be

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1989.
Proceeds—To
gage

redeem

bonds due

1987.

amount

first mort

Underwriter—To be determinec

filed

$20,000,000 of first mortgage bonds due
Underwriter
—To be determined by competitive bidding.
Probable
bidder's: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc. and Smith, Barney & Co. (joint¬
ly); Harriman Ripley & Co. Inc., Eastman Dillon, Union
Securities & Co., Merrill Lynch, Pierce, Fenner & Smith
Inc. and Dean Witter & Co. (jointly); Lehman Brothers,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on
April 28 at office of Guaranty Trust Co. of New York.

Plan Fund,/Inc.,;

fifed

Proceeds—For construction program.

New York
shares of common stock (par five
Price—$3 per share. Proceeds—To repay loans
and for general corporate purposes.
Business—Manu¬
facturers and packager of proprietary drug items.
Un¬
derwriter
Richard Bruce & Co. Inc., 26 Broadway,
Purepac Corp.,

March 31 filed 260,000

cents).

—

New York

4, N. Y. Offering—Expected end of May.

by competitive bidding. Probable bidders: Halsey^ Stuar
•
Puritan Chemical Corp. (4/30)
& Co. Inc.; Kidder, Peabody & Co.; White Weld & Co
March 30 filed 500,000 shares of capital stock (par 10
Equitable Securities Corp., and'Shields & Co. (jointly)
cents.
Price—$1.25 per share. Proceeds—For working
Lehman Brothers, Eastman Dillon, Union Securities £
capital and general corporate purposes. Office—2 South
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmani
Broadway, Lawrence, Mass. Underwriter—Dunne & Co.,
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smitl
New York.
and Dean Witter & Co. (jointly).
Bids —Tentativel?
Raindor Gold Minos, Ltd.
had been expected to be received up to If a.m. (EDT
*
Jan. 28 (letter of notification) 290,000 shares of common
on
Aug. 27 but company on Aug. 22 decided to def*
* stock
(par $1). Price—$1 per share. Proceeds—To prove
sale, pending improvement in market conditions. SEC
up ore and for road and camp construction. Office-r-At
on Feb. 25, 1959 extended to June 16, 1959 period within
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.
which company may consummate financing. / '

Arnold,

Sano &

Perfecting; Service Co.
Feb. 26 (letter of notification) 28,250 shares of common
stock to foe offered for subscription by stockholders on
a

pro

($10

rata basis.
per

share).

inventories.

Rights expire in 15 days. Price—At par
Proceeds—For.accounts receivable and

Office—332

Atando

Underwriter—None.

Ave., Charlotte, N. C.

Wilson Cirele, Rumson,
Co., New.York, N. Y.

N. J. Underwriter—

Rapid-American Corp., New York
April 13 filed $7,209,640 of convertible subordinated de¬
bentures due April 30, 1964, to be offered for subscrip¬
tion by common stockholders in the ratio of $100 of
debentures for each 10 common shares held. Price—To
be

o% series A sinking,
1973. tu be ullered in denomination®

fund debentures due

Price—Ai pai
Proceeds—For work¬
capital and general corporate purposes. Underwrite®
Israel Corp.. Neu
York- on a "best effort®"

$500 and $1,000.
up

-Rassco

basis.

Corp.
$1,500,000 of 6% convertible debentures
be offered for subscription by commdn
stockholders at the rate of $100 principal amount of
debentures for each 300 common shares held. PriceMarch
due

30 filed

1969,

supplied by amendment. Proceeds—To pay debt
development of present properties and acquisi-,
additional oil and gas proper¬
Underwriter—Emanuel Deetjen & Co., New York.

and for

tion and development of

ties.

• Reon Resistor
Corp. (5/4-8) •
April 2 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
purchase new equipment; for payment of chattel mort¬
gage and loans and for general working capital. Offices—
117 Stanley Ave., Yonkers, N. Y. Underwriter—Charles
Plohn & Co., New York, N. Y.

Republic Foil Inc. (4/27)
26 filed 70,196 shares of common stock, to be
offered for subscription by holders of outstanding shares
upon the basis of one new share for each three shares
held on or about April 27, 1959; rights to expire on or
about May 11. Price — To be supplied by amendment.
Proceeds—For property and equipment, to retire bank
loans, and for working capital. Office—55 Triangle St.,
Danbury, Conn. Underwriter—Laird & Co., Corp., Wil¬
mington, Del. " "
March

Research Investing Fund of America, Inc.
24 filed 200,000 shares of capital stock. Price—At

Feb.

market.
N. J.

Proceeds—For investment

Office—Englewood,
America,

Underwriter—First Mutual Securities of

[nc.

Richwell

Petroleum

June 26 filed

Ltd.,

Alberta,

Canada

1,998,716 shares of common stock (par $1).

Of this stock, 1,174,716 shares are to be sold on behalf of
the company and 824,000 shares for the account ol cer¬

selling stockholders. The company proposes to offer
the 1,174,716 shares for subscription by its Shareholder!
at the rate of one new share for each three shares held
(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay other indebt¬

edness, and the balance if any will be added to working
:apital. Underwriter — P a c i f i c Securities Ltd..' Van¬
couver, Canada.
;
•

Roanoke Gas Co.

March

supplied by amendment.

Proceeds—To be apiplied in

stock

mon

common

seven

March 26

Corp.

26 filed $1,000,000 ol

tain

• President Brand Gold Mining Co. Ltd.

—To

Financial

Rassco
iune

Reiter-Foster Oil

Philippine Oil Development Co., Inc.
Minerals, Inc.
/
April 10 filed 221,883,614 shares of capital stock, to be
April 2 filed 260,000 shares of common stock (par 35
offered for subscription by holders of outstanding stock
cents.
Price—$2 per share.; Proceeds—To retire bank - at the rate of one new share for each two shares held.
loans and for investment purppses. Office—513 InternaPrice—To be supplied by amendment.
Proceeds—For
tionai Trade, Mart, New Orleans, La.
Underwriter — . ,; working capital. Office—Soriano Building, Plaza Cer¬
Assets Investment Co., Inc., New Orleans, La. ■/-/
vantes, Manila (P.: I.). Underwriter—None.
• O. K„ Rubber
Welders, Inc.
Dec; 15 filed 60,600 shares of common stock, $43,333.39 f Ar Phillips-Van Heusen Corp.
April 21 filed 69.210 shares of common stock, to be of¬
of.3^4% debentures maturing on or before May 6, 1965
fered in exchange for common stock, of Kennedy's, Inc.,
$692,009 of 6% debentures maturing on or before Dec
in the, ratio of 1^2 shares of Phillips-Van Heusen stock
31, 1974- and $123,000 of 7% debentures due op or beforr
for one share of Kennedy's stock.
May 6, 1965
The Company proposes to make a public
• Pioneer Plastics
Corp., Sanford, Me. (5/11-15)
offering of 25,000 shares of common stock at $10 pei "
April 15 filed 150,000 shares of common stock (par $1)
share. :The remaining shares and the debentures arc
Oil, Gas &

presently out¬

standing, in full, at par phii accrued interest to the
date of payment, and the balance for general corporate
purposes.
Underwriter—None.

stock, of whigh
to be offered for account of the com¬

investment

for

(4/30)

April 7 filed 140,000 shares of

Price—$100

share.

5%% convertible subordinated debentures

March 31 filed 2,041,331 shares of

retirement of the company's

part to the repurchase and

Permachem

Ridgo, Inc.

Sept. 4 (letter of notification) 100,000 shares of commo.
stock (par $1). Price — $3 per share. Proceeds — Fo:
working capital.
Office—11 Flamingo Plaza/ HialeaL
Fla. • Underwriter — Henry^ & Associates. Inc., 11
Fl»
Office

(1915)

The Commercial and Financial Chronicle

...

(letter of notification) 17,732 shares of com¬
(par $5) being offered for subscription by

stockholders

shares held

the basis of one share for each

of record April 6

(with

oversub¬

scription privilege); rights to expire on May 15, 1959.
Price—$16.75 per share. Proceeds—To repay short-term
bank loan and for installation and construction df addLtional

the purpose of extending distribution
123 Church Avenue, Roanoke, Va.

mains for

facilities.

Office

—

Underwriter—None.

Routh

Robbins

Investment Corp.

shares of common stock. Price—$1
share.
Proceeds — For investments and working
capital. Business — Real estate investments.
Office —
Alexandria, Va. Underwriter—None.
Jan. 29 filed 475,000
per

^ Rowland Products, Inc., Kensington, Conn.
April 17 (letter of notification) 11,538 shares of common
stock

(par $12.50) to be offered for subscription by
stockholders at rate of one new share for each

common

shares held of record April 24,

6V4

1959. Price—To be

supplied by amendment. Proceeds—For working capital.
Underwriters—Cooley & Co.; Putnam & Co.; and Eddy
&

Co.

St.

Regis Paper Co.
shares of common stock (par $5)
to be offered in exchange for outstanding common stock
March 27 filed 58,000

Corp. on the basis of .644 of a share
for each share of Cupples common.
Regis will declare the exchange offer effective if.
100% of the outstanding shares of Cupples stock is de¬

of Cupples-Hesse

of St. Regis common
St.

posited in exchange, and may elect to do so if a
percent, but not less than 80%, is deposited. •
Santa's Village,

lesser

Skyforest, Calif.

convertible subordinated
1974. Price—At 100% of
principal amount. Proceeds — For completion of East
Dundee Village (a new amusement park near Chicago)^
and for working capital and other corporate purposes.
March 27 filed $800,000 of 6%

sinking fund debentures due

Underwriter—None.

(G. T.) Co.

Schjeldahl
March
are

filed

42,500

shares of common stock, which
present stockholder®
for each eight shares held

to be offered and sold first to

at the rate of one new share

April 1, 1959. Price—$10 per share. Proceeds—For
plant facilities, for purchase of equipment,
working capital and other corporate purposes. Officer—
202 South Division St., Northfield, Minn. Underwriter
—Craig-Hallum, Inc., Minneapolis, Minn.
on

increased

Seaboard Plywood &

Lumber Corp.

March 27 filed 150,000 shares of common

$3 per share.
uct

lines and

(5/4-8)
stock. Price—-

Proceeds—For expansion of present prod¬
acquisition of new related lines. Office—

Continued

page

€8

The Commercial and Financial
Chronicle

(1916)

Continued

Southern Union Gas Co.

from page 67
Mass.

Bridge St., Watertown,
Morgan & Co., New York.
17

■4t Securities

Underwriter—Petei

Fund, Inc., Englewood, N. J.

April 20 tiled a maximum of $2,400,000 of plans for the
accumulation of shares of capital stock of the fund.

March 19 filed 442,731 shares of 4.64% cumulative con¬
vertible second preferred stock being offered for sub¬

scription by common stockholders of record April 10,
1959, on the basis of one share of preferred for each
five common shares held (with an oversubscription pri¬

vilege);
($25

Service

Life

Insurance Co.

Cor

Sept. 26 (letter of notification) 3,567 shares of common
(par $1). Price—$18.75 per share. Proceeds—To
fto to a selling stockholder. Office—400 W. Vickery Blvd.,
Fort Worth, Tex. Underwriter—Kay & Co., Inc., Hous¬
ton, Tex.
ntock

Servonics, Inc.

March 25

stock

mon

(4/27-30)

(letter of notification) 133,000 shares of com¬
(par $1). Price—$1.50 per share. Proceeds—

Office—822 N. Henry
St., Alexandria, Va. Agent—Kidder, Peabody & Co., New
general corporate purposes.

For

York.

Shares in American

Industry, Inc.

Dec. 12 filed 50,000 shares of common stock.

Proceeds—For investment. Office

market.

Price—At
1033-30th

—

Gt., N. W., Washington 7, D. C. Investment Advisor—In¬
Fund

vestment
Chares in

Management

America, Inc.

Sheridan-Belmont

Corp.

Former

Name-

Hotel

Co.

Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital.. Office — 3173
CsTorth Sheridan Rd., Chicago 14, 111. Underwriter—None
Silver Creek

Precision

Corp.
March 30 filed 1,550,000 shares of common stock (par
10 c&its), of which 200,000 shares are to be offered for
the account of the company, and 1,350,000 shares for
account of selling .stockholders.
Price—TP be^ s.uppjjed
by amendment. Proceeds—For working capital. Office—
Central Ave. and Mechanic St., Silver Creek, N. Y. Un¬
derwriter—Maltz,, Greenwaldi&JCo.? New York.

^ Silver Sands Motel, Inc.
April 3 (letter of notification) 1,976 shares of company's
stock

common

etock

(par

(par .$100)

$100) and 494 shares of common
of Yuma Motor Lodge, Inc., to be of¬

fered in units of four shares of Silver Sands Motel, Inc.
and one share of Yuma Motor Lodge, Inc. Price—$500
per

unit. Proceeds—For purchase of real estate and to

•erect motel. Office—307 S. Second

St., Mt. Vernon, Wash.

Underwriter—None.
SIMCA Societe Anonyme, of France
March 24 filed 1,000,000 shares' of capital

stock, par
value 5,000 French francs (U. S. $10.12) per share, and
equivalent 2,000,000 American shares representing such
1,000,000 capital shares (two American shares represent
one capital share). The company is now
offering holders
of its American shares and holders of its French

in the United States, its territories and possessions, the
right to subscribe for one additional American share for
American

held,

additional French
share for each French share
of April 13, 1959
(with an additional subscription privilege); rights to
expire on May 7, 1959. Price — 5,500 francs (equal to
$11.22 per share) for the French shares, or 2,750 francs
($5.61 per share) for the American shares. Proceeds—
one
held as

be added to the general funds of the
cqmpany and
used for general corporate purposes. Underwriter—None.

pay

Undei writer—Sano &

loans and for

equip¬

new

Co., New York.

April 8 (letter of notification) 200,000 shares of common
capital assessable stock (par 10 cents). Price—35 cents
per share.
Proceeds—For mining and milling expenses.
•Office—501 Jefferson Street, Boise, Idaho.
—None.

Underwriter

Proceeds—To be used in connection with financ¬

ing the cost of constructing
.station

the Coosa

steam-electric generating

River in Alabama and related fa¬

cilities; and for the repayment of $4,000,000 of shortterm bank loans incurred for such capital
expenditures.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co. and Equitable Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith;
ladder, Peabody & Co. and White, Weld & Co. (jointly).
Ililds—Expected to be received up to 11 a.m. (EDT) on
May 28 at the office of Southern Services, Inc.. 250
Park Avenue, Ndw York 17, N. Y.
Southern Nevada Power Co. (5/11)
'
April 6 filed $5,500,000 of first mortgage bonds, series D,
Proceeds—Together with other funds, will be
used to repay temporary bank
loans, and to refund the
slightly less than $4,000,000 of series "C" 5Y2% mortgage
<due 1989.

fjonds

due

1986.

Underwriter—To

determined

by
Stuart

competitive bidding. Probable bidders: Halsey,
Inc.; Eastman Dillon, Union Securities & Co. and
IGdder, Peabody & Co. (jointly); White, Weld & Co.;
Merrill Lynch, Pierce, Fenner &
Smith, Inc. Bids—Ex¬
.& Co.

pected to be received

up to 9 a.m. (PST) on or about
May 11 in the offices of O'Melveny &
Myers, Room 900,
433 South Spring
Street, Los Angeles 13, Calif.
Southern Nevada Power Co.

(4/27-28)

April 6 filed 75,000 shares of cumulative preferred stock
(par $20). Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, will be used to repay
temporary bank loans. Underwriter—White, Weld & Co..
4Nc\v York.
""

•

*■«

j--

<■>

Power

Co.

(5/12)

Vs'" '.<•

■■

■

<Yv

.v .T:

■.

Transcon Petroleum

Mangum, Okla.
March 20

—

Lee Higginson

New

May 12.

.■/;///.,v V ;/;/

'•'//;

Sports

Arenas (Delaware)
Inc.
Nov. 18 filed $2,000,000 of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969. Price—To be
#upplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to
expand two present establishments by increasing
the number of alley beds by eight at Yorktown Heights
and by six at Wilton Manor Lanes,/ Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. UnderwriterNone.

;

v.,:;

Arenas (Delaware) Inc.
Nov. 18 filed 461,950 shares of common stock (par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—
Sports

None.

/ ;

'•

Standard Electric Co., Inc.
March 31 (letter of notification)

Development Corp.,

(letter of notification) 300,000 shares of

stock

it Standard Oil Co. (Ohio)
16 filed $2,500,000 of Interests in the company's

Employees Investment Plan, together with 25,000 shares
of common stock and 9,000 shares of $100 preferred
stock, series A, 3%% cumulative, which may be acquired
pursuant to said plan. V
Standard Packaging Corp.
April 1 filed 43,067 outstanding shares of common stock
and 28.834 outstanding shares of $1.20 convertible pre¬
ferred stock (par $20) to be offered from time to time
on the New York Stock
Exchange or off the Exchange.
Price—Related to the then current market price on said
Exchange. Proceeds—To Estate of D. Samuel Gottesman,

Underwriter—None.

Sterling Television Co., Inc.
March 31 (letter of notification) 200,000 shares of Class
A stock (par 25 cents). Price—$1 per share. Proceeds—
For general corporate purposes, and to acquire television
film series for distribution. Office—6 East 39th
St., New
York 16, N. Y. Underwriter—R. A. Holman &
New York 5,

N. Y.

For

ir Trinity Small Business Investment Co.
17 filed 235,000 shares of capital stock

shares of common stock. Price—
pounds—equivalent to $11 per
share in U. S, funds), payable up to 90% in State of
Israel Independence Issue and Development Issue
Bonds,
and the balance in cash. Proceeds—For
expansion pro¬
gram.
Office — 79 Ben Yehuda St., Tel Aviv, Israel.
Underwriter—American Israel Basic Economy Co., New
Texfel

Israeli

it Triton Mining Co.
(letter of notification)

1,800,000 shares of com¬
(par five cents). Price—15 cents per share.
For mining expenses.
Office
422 Paulsen
Building, Spokane 1, Wash. Underwriter—None.

Corp.
March 19 filed 550,000 shares of common stock (par
$1).
Price—To be supplied by amendment.
Proceeds—For
repayment of the company's 5% notes held by an Amer¬
ican bank, and the balance will be added to its
general
funds and will be used in connection with its various

operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain prop¬
erties, and for the purchase of warehouse inventories.
Office—Republic National Bank Bldg., Dallas, Texas.
Underwriters—Bache

Proceeds

Co.

and

Allen

Co., both of

—

office furniture, fixtures, equipment and office space, by
lease or purchase. Office
Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., la
—

President.

•

United Improvement & Investment
Corp. ^
March 25 filed 1,238,994 shares of common stock

(par
$2.60), of whteh 809,195 shares are to be offered in
exchange for outstanding stock of Lawyers Mortgage &
Title Co.
four

the

basis of

one

share of United for each

Lawyers before its recent one-for-ten
reserve
split, or 2J/z shares of United for each share
of Lawyers after such split. Lawyers' stockholders
may

round

out

their

allocation to the next full share by
more than % of a share at $1.25 for each
V\ share needed. In addition, a stockholder whef accepts
United's offer will have privileges to subscribe to 242,299 additional shares at $5 per
share, on a one-for-four

purchasing not

The company alsopropd§e§ Wtfffdi?137,500 shares
exchange for all the outstanding common stocks of
Margate Homes, Inc., Broward Engineering Co., and
Margate Construction Co., certain outstanding debt ob¬
ligations of Margate Homes, Inc., and $62,500 in cash.
Proceeds—For

working capital and general corporate
Office—25 West 48rd St., New York, N. Y,
Underwriter—Allen & Co., New York, for 242,299 shares
purposes.

stock.

common

United

States

Glass & Chemical Corp.
Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds
To selling stockholder*.
—

Office—Tiffin, Ohio. Underwriter—None.
United Tourist Enterprises,

Inc.

Jan. 28 filed 4,500,000 shares of class A

common

stock

(par 50 cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western Village"
and for construction of

Grand Estes Hotel

and

vention

Con¬

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer
County, Colo.
Office

330

—

South 39th

Street, Boulder, Colo. Under¬

writer—Mid-West Securities Corp., Littleton, Colo.
Uranium Corp. of America, Portland, Ore.
April 30,1957 tiled 1,250,000 shares of common stock (par
16 cents).
Price—To be supplied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration

Underwriter—To

purposes.

Graham

Albert

Griswold

named

Portland,

by amendment.
Ore., is Pres¬

Utah Minerals Co.

April 11
mon

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed*
expenses. Office—305 Main St., Park City,

stock.

—For

Utah.

mining

Underwriter—Walter

Sondrup & Co., Salt Lake

City. Utah.

it UtHity Appliance Corp., Los Angeles, Calif.
April 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share.
Proceeds—To
selling stockholders. Office—4851 South Alameda Street,
Los Angeles 58, Calif.
Underwriter — Dempsey-Tegeler
& Co., Los Angeles, Calif.

it Variable Annuity Life Insurance Co. of America
April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No
contracts

contracts.
M

less
and

shares for each $1,000 debenture). Pricesupplied by amendment. Proceeds—To be used in

common

part to redeem and retire all the outstanding 4% pre¬
stock, to reduce or retire short-term indebted¬

ferred

incurred in January, 1959, and the balance for
gen¬
eral corporate purposes. Underwriters—Blair & Co.
Inc.,
New York; G. H. Walker &

than
no

$120

less

than

year

$1,500

for annual premium
for single premium

Proceeds—For

investment, etc. Office—1832
Street, N. W., Washington, D. C. Underwriter—None.

Victoreen

(5/4-8)
April 8 filed $30,000,000 of 5% subordinated debentures
due May 1, 1984, with warrants attached for the
pur¬
chase of 600,000 shares of common stock
(at the rate of
To be

—

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share. Proceeds
For acquisition of
operating properties, real and/or personal, including

Offering—Date indefinite.

Textron Inc.

stock

mon

(4/24)

Petroleum

New York.

$1).

—

April 3

Super-Sol Ltd.
(19,800

(par

—
$10.75 per share.
Proceeds
For investment.
Office—South Main St.,
Greenville, S. C. Underwriter—
To be supplied by amendment.

ident.

March 25 filed 250,000
par

com¬

stock.
Price—At par ($1 per share). Proceeds—
development of oil properties. Underwriter—First
Investment Planning
Co., Washington, D. C.
mon

com¬

—To

deceased.

and

basis.

10,000 shares of

(par $25). Price—$27.50 per share. Proceeds
purchase equipment, erect and equip a semi-fire¬
proof building and for working capital.
Office — 3016
Austin Highway, San Antonio, Texas.
Underwriter —
Bache & Co., San Antonio, Texas.

mon

York

Price

HafSey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith Inc., and Eastman Dillon, UnioeL Securities &
Co.
(jointly);
Equitable
Securities
Corp.;
Lehman
Brothers; ICuhn, Locb & Co.; Blyth & Co., Inc. Bids—
Expected to be received up to 10:30 a.m. (CDT) on

March

Instrument Co.

filed

247,159 shares of capital stock (par $1)
subscription by holders of common
stock and debentures, at the rate of
new
share for
each four common shares held and eight shares for each
$100 of debentures held as of April 16, 1959 (with an
oversubscription privilege); rights to expire on May 7.
Price—$9.75 per share. Proceeds—For working capitaL
beiag

offered for

Underwriter—None.

ness

Co., Providence, R. I.; and
Scherck, Richter Co., St. Louis, Mo.
|
ThermoPlastics Corp.

March 26 filed 468,500 shares of common stock. Price—
At par ($1 per share). Proceeds—For
purchase of neces¬
sary capital equipment and to increase working capital.
Office—1626 Hertford Rd.,
Charlotte,' N.C. Underwriter
—Interstate Securities

Corp., Charlotte, N. C.

it Tracerlab, Inc. (5/11-15)
April 17 filed 100,000 shares of
Price—To
research

Boston.

York, N. Y.

•£r Southern Electric Generating Co. (5/28)
April 17 filed $25,000,000 of first mortgage bonds due
3992,

Electric

April 13 filed $16,000,000 of first mortgage bonds, series
H, due May 1, 1989. Proceeds—For construction expend¬
itures, and to prepay and discharge some $12,000,000 of
bank loans made for that purpose.
Underwriter—To be
determined by competitive bidding.
Probable bidders:

it Skoro Consolidated Mining Milling Co.

Road, Waltham, Mass.
Underwriters
Corp. and Estabrook & Co., both of

April
Southwestern

Co., Inc.,

Sip'n Snack Shoppes, Inc., Philadelphia, Pa.
March 31 filed 200,000 shares of common stock. Prl'ce—
fi2 per share. Proceeds—To
ment.

York.

New

April

•

-each

ney

rights to expire on May 1. Price — At par
share). Proceeds—To repay bank loans and
construction program.
Underwriters—Snow, Swee¬
& Co., Inc., and A. C. Allyn & Co., Incv both of
per

.Thursday, April 23, 1959

and

supplied

Proceeds

—

For construction program.

Underwriters—

The First Boston
&

Corp., New York; and Johnston, Lemon
Co., Washington, D. C.

it West Driefontein Gold Mining Co. Ltd. (Union of
South Africa)

common

amendment.

development, etc.

Washington Gas Light Co. (4/28)
April 7 filed 100,386 shares of convertible preferred stock
to be offered for subscription by common stockholders
of record April 27, 1959 at the rate of one new share
for each 14 common shares held; rights to expire on
May 12, 1959. Price — To be supplied by amendment.

stock

Office —1601
'i

(par $1).

Proceeds—For

Trapelo

j.000,0IC; fo '"Is:

April 20 filed American Depositary Receipts for 50,000
ordinary registered shares.
Co. of New York.

Depositary—Guaranty Trust
v

Volume 189

Number 5840

...

The Commercial and Financial Chronicle

^West Peim Power Cflr. (5/25)
r
.
April 17" filed $14,000,000 of first mortgage bonds, series
R, due June 1, 1989. Proceeds—Together with other
funds/ Will be applied to thecompany's construction pro¬
gram and repayment of bank loans incurred thereof.
Underwriter—To-be determined by competitive bidding.
Probable/bidders: Halsey, Stuart" & Co. Inc.; Lehman
Brothers arid Eastman Dillon, Union Securities & Co.

vote

was

ceeds

increasing the authorized. preferred

—

Electronic

March 31 it was reported that the company also

tive bidding. Probable bidders: Lehman Brothers and
Riter & Co. (jointly); The First Boston Corp., Blyth &

•

First National Trust & Sayings Bank Of
.

San

shares of
share

ties &

capital stock (par $5)

was

(5/29)

(5/12)

filed an application with the
Commission, for authority to issue
$10,038,700 convertible debentures due 1974, to be offered
to common stockholders of record on or about May 12
company

the basis of $100 principal amount of debentures for
common held/ Proceeds — For construction

each ,22-of

Underwriter—Union Securities Co. (now Easttnan Dillon, Union; Securities & Co.)
handled previous
equity financing. Registration—Scheduled for April 23.

program.

(5/26)

March 9 it was reported that the company plans to issue
and sell. $50,000,000 to. $60,00.0,000 of #rst refunding mort¬
gage bonds. Proceeds—For additions, improvements/etc.
Underwriter—To be determined by competitive bidding.

bidders:

Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected
to be received up to 11 a.m. (EDT) on May 26.
Consolidated Electrodynamics Corp.
April 6 it was reported that the company is planning
early registration of $7,600,000 25-year convertible sub¬
ordinated debentures due 1984, to be offered for sub¬
scription by common stockholders on the basis of $100
principal amount of debentures for each 14 shares held.
Underwriter—Blyth & Co., Inc., New York. OfferingExpected Jn May.

Consolidated

offering

its

the basis of one new
Price—$26 per share;

(9/iO)

announced that the company

construction program.

Natural Gas Co.

received
Great

Sept. 10.

Northern

are

Jersey Central Power A Light Co.
was announced that the/company is contem¬
plating the. sale of $8,000,009 of first mortgage bonds.
Underwriters—To be determined - by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; White,
Weld & Co.; Kidder, Peabody & Co.; Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co;, Inc.," (joint*
ly). Offering—Expected during August:
Feb. 10 it

'-Kansas City-Power;A Light Co.

'''*

plans to issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey*
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities .Corp.; White,
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. &.Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly). Offering—Expected in May or
Dec. 29 it was reported that the company

June.

Long Island Trust Co.
April 9 it was announced bank plans to offer to its
stockholders the right to subscribe for 70,186 additional
shares of capital stock (par $5) at the rate of one1 new
share for each six shares held of record April 21, 1959;
rights to expire on May 8. Price—$20 per share. Pro-/
ceeds—To increase capital and surplus. Meeting—Stocks
holders will vote April 21 on increasing authorized
capitalization and changing par value of shares from
$10 to $5. Underwriter—A. M. Kidder & Co., New York.

Mississippi Power Co. (6/25)
Dec.

10 it was announced that

this company plans to

(5/21)
March 18 the directors approved a plan to/offer stock¬
holders on or about May 21 the right to subscribe for
821,256 additional shares of capital stock on the basis
•of one new share for each 10 shares held; rights to
expire on or about June 10. Price—To be below the
market price prevailing at the time of the offering.
Proceeds — For construction program. Underwriter—

sell $5,000,000 of 30-year first mortgage bond?.
Proceeds-^For construction program. Underwriter—To

None.

ceived

Consolidated Natural Gas Co.
March 18, James Comerford, President, announced that,
in addition to the proposed stock offering to stockholders,
.the company plans this year to issue and sell publicly

$20,000,000 of debentures.

Proceeds—For construction
Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. and The First Boston Corp.
(jointly); White, Weld & Co. and Paine, Webber, Jackson Sc Curtis (jointly).

issue and

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬
be

determined

June 25.

North American Equitable Life Assurance Co.
Dec. 1 it was announced that the company plans an of¬

fering of 950,000 shares of capital stock. Price — $10 per
share. Proceeds—To increase capital and surplus. Un¬
derwriter—John M. Tait & Associates, Cincinnati, Ohio

program.

• Puke Power Co.

April 16 it

was

(6/9)

•

announced that the company has

to the Federal Power Commission for

applied

authority to issue
and sell 250,000 shares of new preferred stock (par $100).
-Proceeds — To reimburse treasury for capital expendi¬
tures.'Underwriter
To be determined by competitive
bidding.^Probable bidders: Eastman Dillon, Union Secu¬
rities dr Co.; The First Boston Corp.; Morgan Stanley &
Co.; Stone & Webster Securities Corp. Bids—Expected
—

to be received

June 9.

Northern Illinois Gas Co.

(6/23)

Marvin Chandler, President, announced com¬
pany plans issue and sale of $20,000,000 25-year first
mortgage bonds. Proceeds —For capital expenditures.
Underwriter—To be determined by competitive bidding.
Probable bidders: -Halsey, Stuart & Co. Inc.; .The First
Boston Corp.; Glore, Forgan & Co.; Blyth & Co. Inc.
jitds-JTentatively planned to be received on June 23.
Registration—Expected at end of May.

March 25,

Northern States Power Co.

shares held.

■

(Minn.)

Proceeds—For construction program. Un& Co. and Morgan Stanley & Co.

Offering—Expected in June.

Probable bidders

Ry. (5/6)
expected to be received by the company on
May 6 for the purchase from it of about $4,500,000
equipment trust certificates. Probable bidders: Halsey,
Stuart & Co. Inc.. Salomon Bros. & Hutzler.
Bids

planning

derwrHers—Drexel

Underwriter—To be

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co. (jointly); Lehman Brothirs; The First Boston Corp.; Morgan Stanley & Co.;
Squitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 14. Bids—Expected to
oe

announced- that the company is

was

Philadelphia Electric Co.
April 8 it was announced company plans to offer about
640,000 additional shares of common stock to common
stockholders on the basis of one new share for each 20*

plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬

ceeds—For

sale

$15,000,000 of- first mortgage bonds.
Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, "Stuart & Co. Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co.; Eastman Dillop,
Union Securities & Co., Merrill Lnych, Pierce, Fenner
& Smith Inc. and White, Weld 85 Co.
(jointly); The First
Boston Corp. and Harriman Ripley & Co. Inc.
(jointly).
Offering—Expected about mid-year.
,
"
,

■

Co.; and Dewar & Co.

and sell

Commerce

Probable

the

—

Georgia Power Co.

(5/1)

Consolidated Edison Co. of N. Y. Inc.

Pennsylvania Electric Co.
Feb. 10 it

for each nine shares held.

Dec. 10 it

Canada.

Co., Inc. and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill
Lynch,
Pierce, Fenner & Smith Inc. Offering—Expected some¬
time during August. <
:
*

Dean Witter & Co.; Blyth & Co., Inc.;
William R. Staats & Co.; Eastman Dillon, Union Securi¬

April 7, it was announced Bank will offer to its stock¬
holders of record April 17, 1959 the right to subscribe
on or before July 10, 1959 for 675,000 additional shares
of capital stock on the basis of one new share for each
eight shares held. Price-r-$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,
1960.
Subscription Agent—Royal Trust Co., Montreal,

Light Co*

—

Diego, Calif.

Underwriters

2,000 shares of capital stock (par $100) to holders of
record May 29, 1959, on the basis of one new share for
each three shares held; rights to expire on June 30.
Price—$150 per share.
Proceeds—To increase capital
and surplus.

the

con¬

offering *' about 714,000 additional shares of
common stock for subscription
by common stockholders
on the basis of one new share lor each 20 shares held.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬

stockholders of record April 21, 1959 the right to sub¬
scribe on or before May 11, 1959 for 105,600 additional

Feb, 26 stockholders of the Bank approved the sale of

r-Central .Illinois

sidering

—

April 22 it;. was announced that Bank is

;

Illinois

(Minn.)

(Calif./
March 31 it was reported that the company is planning
an offering of about
100,000 shares of common stock,
Underwriter
Myron A. Lomasney & Co., New York.
Registration— Via Regulation "A," arownd April 22.
Offering—Expected some time in May.

determined by competitive bidding.

March SI

Northern States Power Co.

Mechanical Specialty Co.

—

Bank of Montreal

—

Fairfield County Trust-Co.
April 6 bank offered stockholders of record March 31
the rights to subscribe on or before April ^8 for
48,625
additional shares of capital stock (par $10) at rate of
one new- share for each eight shares held.
Price—$32.50
per share.
Proceeds—To increase capital and surplus.
Underwriter—Merrill Lynch, Pierce, Fenner & Smith,
Inc., New York;
:;v;
\

Wyoming Corp. /, /
Nov. 17 filed 1,449,307 shares of common stock. Of these
shares %199,307 are subject to partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are: to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new
share for each 2.33. shares held on that; date. Price—$4
per share. Proceedsr-r-$300,000 will be used for payments
on contract to ^purchase shares of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title inpirance company;. $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and $300,000 as
an additionaf capital contribution to Great Plains Mort¬
gage Co. Office—319 E. "A" St., Casper, Wyo. Under¬

Washington, D. C.

Underwriter—To be determined by. competitive
bidding: Blyth & Co., Inc. and The First Boston Corp.
(jointly); Lehman Brothers and Riter & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Smith, Inc./Harriman
Ripley & Co. Inc., and Eastman Dillon, Union Securities
& Co. (jointly); Kuhn, Loeb & Co.; Smith, Barney & Co.

April 28
stock to

For major expansion program. Underwriter
White, Weld & Co., New York.

April 13 (letter of notification) 8,000 shares of common
stock (par $5). Price—To be supplied by amendment.
Proceeds—To selling stockholder.. Office—608 Frederica
Street, Owensboro, Ky. Underwriters—Equitable Secu¬
rities Corp., Nashville, Tenn.: and Almstedit Brothers,
Louisville, Ky.
"
" . /- •.
'

Bank of Commerce,

gram.

announced stockholders will

.1,000,000 shares from 472,229 shares, and the common
itock to 25,300,000 shares from 20,300,000 shares/ Pro¬

^Western Kentucky Gas Co. (4/29)

writer—Nrine.

-El Paso. Natural Gas Co,

March 4 it

(jointly); The First Boston Corp. and Harrimau Ripley
& Co. Inc. (jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be! received
up to noon (EDT) on May 25 at office of West Penn
Electric Co., 50 Broad Street, New York, N. Y.

(1917)

if Public Service Co* df New Hampshire
April 22 it

stated

in the

company's annual report
raising of $13,250,000 from outside
sources. This new money will come partially from shortterm obligations but principally from permanent financ¬
ing, the amount and type of which has not as yet been
determined.
Proceeds—To meet construction require¬
that

was

the

plans

ments for 1959.

Public Service Electric & Gas Co.
Jan. 30 it

was

(6/2)
reported that the company plans sale of

$30,000,000 to $40,000,000 debentures. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co, Inc.; The First Boston Corp.;; Kuhn
Loeb & Co. and Lehman Brothers (jointly);; Morgan
Stanley & Co. and Drexel & Co. (jointly). Bids—Ten¬
tatively expected to be received on Julie 2.
San Diego Imperial /Corp.
16 it was reported that

March

the company plans to
1,278,720 shares of common-stock.
-Proceeds—For further acquisitions. Underwriter—J. A
Hogle & Co., Salt Lake City and New York.
offer

additional

Specter Freight System, Inc.
/
Feb/16 this company sought ICC approval for issuance
of, 200,000 shares of class A common stock (par $1),; of
Which 60,000 shares will be sold for the aceeunt of sell¬
ing stockholders

Proceeds

—

and for additional'
Becker

To pay outstanding'loans
Underwriter—A. G.

working capital.
Co., Inc., Chicago, 111.

Teieflex

Ltd., Toronto, Canada
March 24, R. C. Dobson, President, announced that
the company plans to raise approximately $1,000,000 in
the near future, partially through debt financing and'
partially through the sale of additional common stock.
Underwriter

—

To be named later. Registration

Ex¬

pected about May 1.
Union Electric Co.

(Mo.)

Feb. 23, J. W. McAfee, President, stated that the com¬

plans to sell about $30,000,000 of additional com¬
later this year through rights to common

pany

stock

mon

stockholders. Proceeds—For expansion program.'Under¬

determined by competitive bidding.
Brothers; White, Weld & Co.,
and Shields & Co. (jointly); Merrill Lynch, Blerce, Fen¬
ner &
Smith, Inc. Offering—Expected toward the end
of the second or third quarter of 1959.
writer—May

Probable bidders: Lehman

United Gas Improvement Co.

(6/16)
was reported, that the company plans to issue,
$10,000,000 of first mortgage bonds due. 1984..
Underwriter—To be determined by competitive bidding.'
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Merrill Lynch, Pierce, Fenner & Smith and East¬
man Dillon, Union Securities & Co. (jointly); The First
Boston Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.; Drexel & Co. and
Eastman Dillon, Union Securities & Co. Bids—Expected

April 7 it
and

sell

received,

June

around May 15.

16.

Registration—Planned for

•

Virginia Electric & Pow.r Co. (6/2)
21 it was announced that the company plans to
an additional 710,000 shares of common stock to;
be offered for subscription by stockholders of record on;
or about June 2, 1959, on the basis of one new share
for4
Feb.

offer

each 20 shares then held.

Proceeds

—

For construction:

program. Underwriter—To be determined by competi-.
five bidding. Probable bidders: Merrill Lynch, Pierce,

Fenner & Smith; Inc*. ;> Stone

&♦ Webster Securities Corp.
Bids—Expected to be received on June 2.
Worth Fund, Inc.
13 it was reported that the Fund was planntoE
the sale of about $5,000,000 of common stock. Price--,

Feb.

March 31 it was reported , that the company has revised
its financing plans, and is considering the offering and

Around $14.25 per share.

sale of $10,000,000 of new preferred stock. Proceeds—To
be used to repay bank loans and for construction pro-

Indefinitely postponed.

and G. H. Walker & Co.,

Underwriters—Blair & Co. Inc.
both of New York. Offering—

"70

The Commercial and Financial Chronicle

(1918)

...

Thursday, April 23, 1959

$176 Million Gain

Group Securities' ::

United Fds.

For Fundamental

Assets Rose 56%

Sets New Records

Mutual Funds

Fundamental Investors, Inc., one

nation's

the

largest

common

funds, reports record total
net assets of $537,656,164 on March
767

with $361,385,-

year ago.

asset value per share rose

4 Net

$13.97 on March 31, 1958, to

from

on March 31, 1959.
This
represents a gain of 35% after ad¬
justment for a 40 cent per share
capital gains distribution on Feb.
2, 1959.
The number of share¬
holders rose to 99,890 and total

$18.55

outstanding

increased

Corporate Earnings Seen Rising to $24 Billion Record
Net earnings of all U. S- corporations "appear to be staging a
/spectacular recovery" and will rise to an all-time high of $24 bil¬
lion in 1959, up from $18.5 billion in 1958, it was predicted today
by National Securities & Research Corporation. The investment
company sponsors and manages the $450 million group of National

Securities Series mutual funds.
National's staff

fund.
/;

Newly added to the fund's hold¬
ings during the first quarter of
were

ments, Inc.
holdings of
of

Texas

and

Eliminated

Instru¬
were

all

Aluminum Company
America and Republic Natural

Company. Substantial reduc¬
were
made in holdings of
ACF Industries, Inc. and Alumin¬

Elvis Reid

Federal

Industrial

engaging

business from offices at

College
name

Street
Elvis

under
Reid

attained

Production

securities
120 West

the

high of

record

147

are

seen

firm

ing rates for which they were planned."

MURFREESBORO, Tenn.—Elvis
Reid

Broad advances

are

expected to continue in the steel industry

despite the possibility of a strike and higher prices both of which
National expects to develop. Steel output for the full year is seen

Co.

exceeding 112 million tons, up from 85.3 million in 1958. Domes¬
predicted at 5.7 million units up from 4.2 mil¬
lion in 1958. Home starts for the year are projected at 1.3 million,

tic auto output is

Joins

dent and director of sales of Dis¬

Science

tributors

funds March 31

Group, Inc., the com¬
pany's national sponsor. This was
increase of 25%

the

over

corn-

sparable figures for the
riod

same pe¬
Mr. Ahbe said that

1958.

the 1959

figure included $1,139,000

Group's 20 mutual funds.;
—Quarter Ending—- •
Apr. 1.'59
Apr. 1,'58
$
i£s'-,.
§ - • -

Total

pbsets.160,994,585

Investor purchases...

103,097,726

10,197.028

8,146.337

Dempsey-Tegeler

(Special to The Financial Chronicle)

100,000 over last year and the dollar value of all construction

activity is expected to exceed $52 billion, a new record.

LOS ANGELES, Cal.—Ruth W.

The investment company believes Gross National Product

Kershner

has joined the staff of
Dempsey-Tegeler & Co., 210 West
Seventh Street.,

total around

peak.

will

$475 billion for 1959, with the final quarter at a new

During the first quarter it is estimated to have attained an
billion, up from $453 billion in the final
record.

annual rate of about $465

three months of 1958, the previous

"Although the outlook is never entirely cloudless," National's
staff concluded, "we believe ample opportunities exist for longterm investors in carefully selected securities of successful Ameri¬
can
corporations, particularly those with well-defined growth

A MUTUAL

INVESTMENT
FUND

Keystone K-l Had

l&atumal
%miii

Jatouth

last

Combined

FREE INFORMATION
FOLDER AND PROSPECTUS TO

YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &

RESEARCH CORPORATION
istoblished 19 30

Howard

5, N. Y.

CONSIDER...

EATON & HOWARD

Funds

Eaton

increased

$86,-

839,444 during the past 12 months
to a new high of $346,625,146 on
March 31. The increase

was

which have
of

total net asset value

than

$425,000,000.
Net asset value per share also
increased 23% for that period, re¬
flecting the effect of the strong
more

business

broad

and

recovery

the

new

and

present shareholders,
part to the increase in

market value of the Funds' invest¬

Fund

Eaton

Howard

Common

stocks

represented

rate

bonds;

and 12.5% in U. S.
ments.
Government obligations and cash.
Net assets of Eaton & Howard The five
largest common stock
Stock Fund totaled $144,695,029 or
holdings by industries were oil
$23.94 a share on March 31, 1959, (15.9%), power and light (13.7%
),
compared
with
$89,120,601
or insurance
(5.6%J, banking (5.1%)
$19.07 a share a year ago. The in¬ and steel (3.5%).
crease
in asset value per share

Fund's

common

largest

stock

Full text of Commercial and Financial Chronicle : April 23, 1959, Vol. 189, No. 5840

FRASER