Full text of Commercial and Financial Chronicle : April 28, 1960, Vol. 191, No. 5946

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and FINANCIAL
^cmGAM

29 1960

apr
SINESS

Reg. U. S. Pat. Office

ESTABLISHED 1889

Volume 191

AS WE SEE IT

Eduorki
of

One

New York

5946

Number

Arthur F. Burns,

Area of Securities

neglect to ponder with the greatest care.*
professor calls sharp attention to the fact that
changes in our financial position vis-a-vis the remainder
of the world have "diminished our effective' range of
must not

we

dealing with recessions." He then adds:

j"For many years we were
nomic affairs without regard

"If

we

no

recession

a

Mr.

able to conduct our eco¬
to stocks of gold, without

country but

our.

of

include:

not

and

ballot

due to a

_

are

its

the

in

now

material.

proxy

sion

of

proxy

season,

came

was

"All

this

does

not

that

mean

V

that

unless

economy

the

balance

of

,y

the high

somewhat

as

sur¬

a

One

cludes
.

page

13.

Toronto

THIS

IN

PICTURES

ISSUE:

Traders

Bond

photos taken at the

that

a

tempting

However,

one

most careful
'^

STATE AND MUNICIPAL

tomorrow.

today

CHEMICAL BANK

623 So. Hope Street, Los

be

Municipal

Angeles 17,

California
Members New York Stock Exchange

Offices

in

Claremont, Corona

Housing
Agency
Bonds and

Notes

del Mar,

Bond Department

Encino, Glendale, Hollywood, Lonf Beach,

VIEW

BURNHAM

Oceanside, Pasadena, Pomona, Redlands,

NEW YORK

LETTER

MONTHLY

Riverside, San Diego, Santa Ana,
Santa Monica, Whittier

THE FIRST NATIONAL CITY BANK

COMPANY




may

State,

Members Pacific Coast Exchange

the

MEMBERS NEW

15 BROAD

YORK AND AMERICAN

•

Dl 4-1400

To

1832

ESTABLISHED

New York Stock

York Correspondent

,

t

'

Block

Exchange

*

Maintained

—

Chase Manhattan
bank

Pershing A Co.

HAnover 2-6000

NEW YORK 4, N.
•

*'

BRIDGEPORT

•

PERTH AMBOY

BONDS

FOR CALIFORNIA'S

Rights

CIVIC

offer to buy the above right*
which expire on June 27, 1960 at
the current market.

IMPROVEMENT

Direct Private Wires to

All

Exchanges

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

MUNICIPAL
CANADIAN DEPARTMENT

DIRECT VIRES TO

MONTREAL AND

MEMBERS NEW YORK STOCK EXCHANGE

NEW YORK

DEPARTMENT

TORONTO

Goodbody & Co..
2 BROADWAY

BOND

Dominion Securities

Teletype NY 1-2270

Y.
y ••

MUNICIPAL

CANADA

We

Inquiries Invited

Canadian

•«

STREET

OF
;

*

25 BROAD

THE ROYAL BANK

Banks and Brokers

Commission Orders Executed On

Stock Exchange

.

Markets

Active

Dealers,

securities

Members

*

New

canadian

T. L.Watson &Co.

,

Southern

TELETYRC NY U22SZ

Net

American

Teletypes NY 1-708

Bond Dept.

on

THE

California Securities

STOCK EXCHANGES

STREET, NEW YORK 5, N. Y.

COBURNHAM

CABLE:

Inquiries Invited

OF NEW YORK

Burnham and Company

/

the

The only way to resolve the

Associate Member American Stock Exchange

BONDS

HAnover 2-3700

New York 15

in

of accepted legality
legal prob¬
lem may be through a court contest, but there will
certainly be no court contest if we sweep the
matter under the rug. In
(Continued on page 28)
legality

Tul

Lester, Ryons & Co.
v

30 Broad Street

may,

and Public

Municipal

BOND DEPARTMENT

What

immediately.

PICTORIAL SECTION.

>

TRUST

a

violation of law.

opinion of able counsel, be of doubt-

28th Annual Dinner of the

Association appear in today's eight-page

a

basic difficulty in such a position

itself

suggests

Securities
telephone:

illegal but
It is ex¬
to take the position that the

^proposal which might result in

Edward N. Gadsby

is

it con¬

is not clearly

proposal

Housing,

State and

area

might be open to some legal question.

U. S. Government,

Public

At any

questions suggested in this

of the

tremely

going to

Candid

to ac¬

law

.^Commission should not require inclusion of

thought
that you would be interested in going over with
me a few of the basic guides to decision which the
Commission has adopted in dealing with cases

is unlikely to benefit during the next recession
easy money conditions
(Continued on page 25)
of April 21,

the

This leaves a great deal
latitude. For example, it might include petition¬

what action the Commission should take if

meetings. Then again, I

from such

*See Chronicle

take only such

to

was

consistent with

purpose.

legal effect. If we are wrong in the law, as we
may quite possibly be, there are other avenues
open to the corporation to prove it.

This deci¬

insist in the
future any more than we have
in the past that the pet plans
of every stockholder be sub¬
mitted
to
a
vote
at
annual
not

are

however,
is righted, our

payments

Board

the

were

independent analysis of the proposal and of its

may have that this action
signals the beginning of some
sort of administrative orgy. We

need to live

will

we

even in the near future with
interest rates of the recent past. It does mean,'

permanently or

as

this

legality of such a proposal. If there is any doubt
as to the applicable law, as we see it, it is neces¬
sary in each case for the Commission to make an

successful

First, I want to allay any fears

the consequence

;

.

of these opinions. In the
counsel's opinion was based

one

rate, the question remains whether we should give
decisive weight to counsel's opinion as to the il¬

and it seems

one

,

that

complish

prise after proposals generally
regarded as similar had been
refused for a couple of years.

differentials would be aggravated

train of events.

case,

measures

they must process
lack of personnel and funds.

have read that Wilma Soss
recently in an application to
compel U. S. Steel to insert a
proposal for a secret ballot in

under the assumed
would
run considerably higher than domestic rates.
a
"Nor is this all. If very easy money conditions here
led to uncertainty among foreign bankers and investors
about the soundness of our financial policies and to fears
that the dollar might be devaluated, the normal adjust¬

a

every

specified

Mr. Gadsby, in conclu¬

you

might well occur because,

of such

and

Steel

posal with New Jersey law. However, Mrs. Soss
had learned from experience, and had carefully

appropriate to begin with a few words about cur¬
rent stockholder proposals. I suppose that most of

conditions, interest rates in foreign money centers

v

S.

ing the Legislature for enabling statutes.
We

foreign cash balances held here and of stimulating a
capital abroad. Such move¬

by speculation. A gold crisis would be

due deference

squarely on the alleged inconsistency of this pro*

proposed new proxy
companies; and (3) revising Form 8-K
Gap."

basic

the

cases,

With all

legally improper.

to.each
U.

(2)

proposal;

the "Guterma

closing

and delays

flow of short-term American

ments to interest rate

(1)

these

of

bar, our proxy rules would be quickly
rendered nugatory if we gave conclusive weight

topics dealt with
basis for SEC's treatment of Wilma Soss'

secret

most

the

to

sion, refers to heavy volume of financing

foreign securities in the American market. At the
same time we would run the risk of causing a reduction

ments

festly

he

Other

exemption.

offering

rules for investment

any

and

functions,

management

private

of

of

he terms an
in ful¬

what

investment companies

by

ends doubts
regarding SEC's view of public distribution of convertible
securities received in private placement and other aspects

recent

in

about

uneasiness

voices

arrangement

their

filling

longer have.

developed

Gadsby

anomalous

In

type.

question, is whether or not the matter is appro¬
priate for stockholder action. Of course, we are
copiously supplied by management with opinions
of counsel in each case that the proposal is mani¬

Washington, D. C.

Exchange Commission,

this

of

'

>

sharp easing of credit conditions by the
Federal Reserve authorities would facilitate the flotation
abroad,

Copy

i

By Edward N. Gadsby,* Chairman, Securities and

/""regard to foreign holdings of liquid dollar assets, with¬
out regard to the level of prices here relative to the
level abroad, without regard to the level of interest
rates here relative to the level in foreign money markets.
This freedom

a

Regulation

The

freedom in

50 Cents

Current Problems in the Vital

country's leading economists, Professor
the other day uttered a warning that

the

Price

7, N. Y., Thursday, April 28, 1960

\ NORTH LA SALLE ST.
CHICAGO "

<orpdratioti
Associate Member American Stock Exchange
40

Bank

Tel. WHitehall 4-8161

Tele. NY 1-702-3

of

America

N.T.&S.A.

Exchange Place, New York 5, N. T.
*

San Francisco

Los Angeles

Financial Chronicle

The Commercial and
2

.

.

.

Thursday, April 28, 1960

(1826)

/

Brokers, Dealers only

For Banks,

The Security

I Like Best...

Alabama &

Participants and
Their Selections

each week, a different group of experts

A continuous forum in which,

Week's

This

Forum

4

Specialists for
35 years

over

in the investment and advisory

field from all sections of the country

favoring a particular security.

participate and give their reasons for

in

Inc.

Mills,

Burrus

Louisiana Securities

F.

Joseph

—

Research,
Warner,
Jennings, Mandel &
Longstreth, of Philadelphia, Pa.
McKinney, Director of

gain from

JOSEPH F. McKINNEY

Bank Stocks

Research, Warner,

of

intriguing income producer.
Last year, after cleaning up the

Jennings, Mandel & Longslreth,

Quarterly

Our 112th Consecutive

Comparison of Leading Banks
and Trust

Companies of the

United States

Philadelphia, Pa.
Burrus Mills Inc.

Burrus

1 i

Available

on

Inc. is a company
characteristics.

strong

has

request

rela-

c

'i

the best clue to payout
probability is "ability to pay." On
a
current
basis
($6.60
post-tax

demonstrated

fortable

1920

market

evaluation is

WOrth

Teletype NY 1-40

4-2300
BOSTON

SAN

•

to

Wires

Private

CHICAGO

•

PHILADELPHIA

FRANCISCO

Cities

Principal

of

all

to

puzzle is to examine whether
balance sheet
needs would pru¬

logic

by public

dently dictate plowing back earn¬

ex¬

ings no matter how good. In con¬
templating the balance sheet of
Burrus Mills, one wonders if the

aggeration of
its

current
J. F. McKinney

difficulties,

namely
and

S.

WEINBERG,

Its

Members
N.

7.

projected price earnings

a

ratio of 3.2, a

book value twice the
market, and a possible

current

dividend

numbers,

on

WHitehall

\

Mills

Burrus

is

a

milling operation.

3-7830

Teletype No. NY 1-2762

well when disaster struck in

mistake

Trading Interest In

of

storage

when

rainfall

and

damaged

American Furniture

be

Life Insurance Co. of Va.

drainage
to

dollars.

million

$15

The

determined

was

few who believed that

were

could

recover

ever

from

dated

City

by July,

1958 and $9.24

HOW TO EXPAND WITH

without
the

CANADIAN INDUSTRY-

per

been

in the

Canada, into the U. S. and

Europe, the Company is in
cial
If

touch with

con¬

Canada's finan¬

pulse.
you

are

interested in

any

of investment in Canada—
municipal or corporate bonds,
stocks—or if you want informa¬

wheat

damaged
been

$5.60

spectively.

from

losses,
per
would

tax

and

$6.20,

The remainder of

Canadian

credit

should

about $6.60

Currently
sells

at

consumed

be

share.

per

the

therefore,
estimate.

1959's

Conservatively, these earnings
translate
had

to

$4.60 if

tax credit

no

available

been

during

the

Furthermore if we assume
deterioration of Cuban

year.

complete

earning

(and

power

the Castro

over

sant)

nervousness

dictatorship

seems

taxes,

assuming full domestic
earnings would be in the

and

neighborhood
Thus

the

Cuba.

assist

you.

of

earnings that

sells

are

NESBITT, THOMSON
JIND COMPANY, INC.
25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4

BOSTON 10




be

a

buy

per

at

6

share.
times

fully taxed and

contribution from

any

The company
to

3.40

stock

stripped of

to

would

ten

$3

per

share 'dividend

payments.
summarize, we apparently

of New

earnings and asset view¬

point. I do not know whether last
year's $3 dividend will be main¬
tained but I. do feel that something
will be paid before the June 30
year
expires and am convinced
that $3 can well be afforded. The
is

stock

traded

the

in

therefore

from

appears

earnings
will be de¬

an

point of view and, as
veloped below, is a veritable bar¬

approved

Partner, Kalb, Voorhis & Co.
New York

Exchange

York Stock

New

Members

City

Tokyo, Japan
Brokers

111

&

Investment

is

"B"

"B."

The

each

class of stock

provisions

"B" is in such

profitable
have ever

a

unique and potentially

Railroad

curities
been

There

"A"

Consumer
Finance

se¬

or

tential
A

whole.

"B"

MOP

It could

of

worth

$4,000
from

value

well in

share,

a

"B"

five

outstanding,

ghany

times

to

be
ten

of

which

Alle¬

Corporation

owns
20,325
incredibly small num¬
of outstanding shares repre¬

shares. This
ber

sents the

true

1959

had

almost

net

and

million.
years

It

of

of

a

which at the end

assets, revenues of
lion

stock

common

railroad system
of

billion

$1

over

earnings

was

the

proposal

in

$300 mil¬

of

result

and

$15.5
of

23

counter¬

proposal during which time Alle¬
ghany Corp., who owned a major¬

ity

of

the

old

Missouri

as

a

no

solicitation

Pacific

stock, rejected three

re¬

organization plans. The final plan,

circumstances to be construed

of

an

shares

20,325

offer to Buy,

any

Phila.-Balto.

&

Boston

Pitts.

1516 LOCUST

Stock

Stock
Exch.

Exchange
(Assoc.)

ST., PHILA. 2, PA.

as an

offer to sell,

security referred

to

For

the

BO NDS

MUNICIPAL
of

WEST VIRGINIA

par¬

even

of

VIRGINIA-

NORTH

CAROLIN

SOUTH

CAROLINA

"B"

proposed change in

any

company's

capitalization.

only

the

to

and

as

The

an

"A"

4CC

is

stock

annual

non-

RICHMOND, VIRGINIA

company

full

$5

has

dividend

or

herein.) "

paid the

never

requirement

on

the "A" stock. Because of this the
"B"

„

shareholders

ceived

a

about,

way,

worked

to

difference

and

dividends

therefore,
"B"

In

re¬

round-

a

between

paid
to

accrues

class

never

however,
this
has
their advantage since

the

stock

have

dividend.

to

the

stock.

on

earnings
the "A"

surplus
benefit

As

saving*

and,

of

the

result, the
equity behind each "B" share has
increased

a

phenomenally since 1955.

At the end of 1959, the book value
of

"B"

the

share.
count

stock

was

$1,816

This does not take into
a

a

Over-tHe-Counter

ac¬

significant item of $2,892

which represents the dif¬
ference between the carrying cost
of the
company's investment in
a

Quotation Services

share

for 47 Years

affiliated companies (50% or more

ownership) and its equity in their
book

well

value
over

of

$4,000

In view of the

(This is under

words,

net assets. In other
common

Members:

own a preferred stock
such, the ultimate price
potential on their stock is limited.

ex¬

could

40,648 shares of MOP

are

ALBERT J.CAPLAN &C0.

reality they

at any

come

times its present market price.
There

preferred
dividend-

This provision works to the detri¬
In

a

real book

a

of

ment of the "A" shareholders.

today.

does, not

outcome

declining market.
When it does, MOP "B," which is
now selling at about $330 a share,
cess

inactive

stocks:

cumulative dividend of $5 a share.

upon a change
of sentiment about the rail group
a

of

entitled
Arthur Vare

in

time—even in

class

a

votes than the "B," the

Furthermore,

necessarily depend
as

of

or

convertible preferred

or

other

veto

the

po¬

exists

either

of

other class

In

decision

re¬

successful

the

shares

more

can

emerg¬

from

of any

lion

the

similar

of

of

though the "A" stock has 1.8 mil¬

organization.
A

is

,

issue.

Country's
leading roads
ing

shares

majority of each
necessary
to
authorize

ticipating

made
group

years

were

of

additional

during

the

desirable oosition.

vote; however, the consent of

class

few

The last
important

was

blocks

common

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

unique. It

1,871,957

are

holders

years.

money
in
the

to

Companies

stock

one

of

during

past

attached

are

ment
or

a

V*

for retail off-street place¬

share of both classes is entitled to

have

out

two

and

seek

outstanding
and
as
noted, 40,648 shares of "B." Each

this advisedly.

I say

across.

come

I

situations

special

"A"

because of the large earning power
of the
system today that MOP

most

the

of

one

created

stock—an

Bankers

Broadway, N.Y.6 COrtlandt 7-5630

Over-the-

is because of these provisions and

Missouri Pacific "B" Stock
MOP

in 11955,

;

of

classes

of

Yamaichi Securities Co., Ltd.

Counter Market.

ARTHUR VARE

York, Inc.

Affiliate

starkly over¬
drawn. At current prices, Burrus
Mills represents uncommon value
an

write

Securities Company

where

situation

another

information

or

Yamaichi

which

million

$12 V2

accommodate

HU'!

vs.

stock,

times

3.2

will be

glad

than

better

e

re¬

the

during the fiscal year ending June
30, 1960 which, in my judgment
will
yield
post-tax
results,
of

investments,
Nesbitt, Thomson and Company
on

arising

to be the heaviest market depres¬

type

tion

in fiscal 1959. Even

credits

tax

share

June 30,

share results in these years
have

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

stant

current

Call

W,

when

1958.

netting $7.20

enviably,

across

For

cash resources
from excess'working capital and
net 'cash throw-off amounting to

from

branch offices

our

STOCKS

has

company

To

to

JAPANESE

that

assume

we

$41/2 million is an adequate work¬
ing capital level (probably a rea¬
sonable guess since the resulting
current ratio would exceed 4 to 1)
the

NY 1-1557

Birmingham, Ala

■'':

•

Furthermore, if

depreciation, net of debt service
requirements, will be about $9.50.

the

for the fiscal year ended

you

share basis, net working

per

Credit Corp. was one

Since then Burrus has prospered

Have

share

per

value. Also

capital is $31, cash alone is $8.50
and during the current fiscal year,
cash throw-off from earnings and

fashion

TWX LY 77

LYNCHBURG, VA.

vestment

a

$26

their book

than

more

this

York

STRADER and COMPANY, Inc.

New

heavy

blow; fortunately Commodity
of these few.
Its faith in Burrus' operating abil¬
ity was quickly rewarded when
after
heavy losses, of $3.73 and
$6.76
respectively per share
in
fiscals 1956 and 1957, the entire
indebtedness to. C.C.C. was liqui¬

Commonwealth Natural Gas

to

for

insured

were

on

3 years ago

even

1956.

quantities.

large

nearly

There

Burrus

Wire

fixed assets
(which have since been increased)

and

wheat

unusually

inadequate

loss

resultant

Bassett Furniture Industries

—-5-2527—

tion.

market pessimism is

30,

C()

Mobile, Ala.
Direct wires

Its balance

belonging to the Commodity
Credit
Corporation
in
conical
canvas tents proved to be a costly

Private

existing $3.3 million
debt carries surplus
provisions but,
cur¬
rently,
surplus
exceeding $8.20
per share is free of such restric¬
long term
protective

1959
statement
shows net worth of $43 per share
June

New Orleans, La. •

the

True,

have

sheet, never undernourished, was
filling out nicely and its earning
power
was
compounding
quite
Experimental

LD 39

HAnover 2-0700

liberal dividend.
The

«

|

A

Members New York Stock Exchange
Members American Stock Exchange

highly regarded grain storage and

Exchange Place, New York 5

Phone:

warrant

agree
*

Historically,

Odd Lots

(Active and Inactive Issues)
40

will

you

investigation.

BONDS
Bids

other characteris¬

has

stock

yield better than 14% if last year's
is
duplicated.
These

Dealers Alt'*

Security

assets

of total

power

tics too:

INC.

third

a

quarter
of
consolidated
in Cuba.

a

earning

GROSSMAN
& CO.

of

5TEINER, ROUSE

0

19 Rector St., New York 6, N. Y.

afford not to pay a

can

company

the

location

"ex-

out

propor¬

tion

an

Another useful clue in the pay¬

depressed out
5

Broadway, New York

on

even

Cuban" basis.

American Stock Exchange

120

basis and

taxed

$3 dividend
on
a
fully

a

covered

be

would

Finally

its

Associate Member

coverage.

indicated above,

as

face of adver¬

sity.

there is of course com¬
Furthermore,

earnings)

ability to
prosper in the

Corporation
Established

fantastic

a

New York Hanseatic

_____

be

cases,

tions..,- It ...has

—

Vare,
Partner
Kalb,
Voorhis & Co., New York City.
(Page 2)

Arthur

famine, Burrus paid a $3 common
dividend. Whether or not this will

duplicated before the current
fiscal year ends on June 30 is a
matter of conjecture, but in such

Stock

"B"

Pacific

Missouri

preferred arrearages that had ac¬
cumulated
during its two year

kept its nose to the grind¬
stone and avoided ebullient pubIt

Bought-—Sold—Quoted

(Page 2)

0

Mills,

three

with

balance sheet angle;

a

could also be an extremely

but it
Director

likely that at

words, the real

the
a

"B"

stock

is

National Quotation Bureau
Incorporated

share.

Established 19 tS

situation, it

some

seems

point, the

Continued

com-

46 Front Street
CHICAGO

on

page

33

New York 4,
.

SAN

,

N. V.

FRANOIBOO

Volume

Number

191

5946

.

.

The Commercial and

.

Financial Chronicle

(1827)

3

We Must Expand Our Output

To Be Competitively

Strong

CONTENTS

CHTEIlSIf

B.S.

COMPANY

AND

By Hon. Robert B. Anderson,* Secretary of the Treasury

Articles and News
Our performance

tunities,

1970. Treasury

said to require a 50% output hike by

are

stresses the
lift

importance of keeping our economic freedom of choice.
current

our

warns, we must

Problems

$500

billion

$750

GNP to

in

the

Vital Area

of

Securities

dollar's

integrity and

assure

Cover

We Must Expand Our Output to be
Competitively
;
7
' „• •
y ,7
'
,-.V;
—Hon. Robert B. Anderson
t

long period of

a

Obsolete

Strong
.»'■

..

99

3'

like

would

to

by-pass the true savings market.

begin with

two

WALL STREET,

Dept.

NEW YORK

Telephone: WHitehall 4-6551

—Ira U.

ahead as may be nec¬
quotations:.
essary. But we
must not forget
that
national
defense, fully ade¬
The first is a statement of Abra¬
ham Lincoln: "With public senti¬ quate both for the present and for
what may be a long period of
ment
nothing
time, as not solely a matter of
can
fail; with¬
men, missiles, and military might;
out it, nothing
fully as important is the main¬
can
succeed."
I

Securities

[

Cerro de Pasco Corporation—World Miner and Fabricator

4f/4 interest rate ceiling claiming it compels the Government
to

obsoletes

your

US!

—

,

healthy, rewarding and non-inflationary growth. The Secretary criti¬
cizes the

between

.

and cash

Regulations—Edward N. Gadsby

discipline ourselves to making the correct choices so
the

.

,

Mr. Anderson

billion,

.

maintain

to

as

THE CONNECTION
»

Current

Secretary Anderson not only outlines our growing needs but also
To

Page

goals, including creation of new employment oppor¬

many years

Cobleigh

------

5

----

farrington

Improving the Evaluation of Stock and Bond Yields

...

The

tenance of

second

a

strong and free econ-

"Our

m a n-

without which a strong de¬
possible. This requires
meaningful economic growth at a
high l and sustainable pace, .ex¬
panding job opportunities, for » a
growing labor force, and reason¬
able stability in the purchasing

power

poten¬

power

taken

from

omy,

recent

pub¬

fense is not

is
a

lication

of the

Department of
Labor. It reads
follows:

as

will

the

have

to

•

billion

750

vide

a

of

We

by 1970. "This •during the 10 years is by far the
largest increase for any 10 year

25% increase in its stand¬

can

do this. Are we

The

answer

is

not

automatic.

Eco¬

nomic freedom is not self-sustain¬

Continuing growth in a cli¬

mate of free economic choice rests

decisions

conscious

the

do

to

things and to refrain from
doing the wrong things. The great
question facing us is whether pub¬
lic sentiment will be sufficiently
well informed and sufficiently re¬
right

sponsible

make

to

the

right

I have quoted just now a single

aggregate figure for 1970 — the
rate of output of goods and serv¬
ices which we expect to reach in
real
terms
during the next 10

But it is relatively simple
project an up-curve on a chart.
What lies behind this projection?

years.
to

What

exactly

formances

the specific per¬
are looking for if

are

we

is to move from $500
billion to $750 billion in terms of

our

economy

output?
What
measures should public sentiment
support and which ones should it
reject? -These are some of the
questions I should like to discuss
uninflated

real,

briefly.f

-

'

-

performance first.

Let's look at

»

a

oppor¬

first call

strength
deterrent

on

our resources,

maintain

must

opportunities

these

we

know that.

special problems will have to be
These
will involve, such

faced.

groups

new

as

working

skills

with

which

have

become

Solving these prob¬
will be a part of the job we

obsolescent.

do.
:
-7
y "
On the side of business owner¬

shall have to

clear
profits will have to be forth¬

ship and management, it is

coming at a reasonable rate. For
if

a

military

sufficient to be a real
to
aggression for as

McCracken

•

Grow

have

specialized in

Lot

a

—David

Outlook

acoustica

12

:

Faster With

Real

a

National

associates, inc.

Effort

Rockefeller

Helpful

Equity

—Richard

bowling corp.

15

Financing

for

Electronics

of america

Companies

Silberman

T.

7yv

y; 1

18
*

*

Members

of

J. F. Reilly &

21

39

Graduating Class of the Institute of Investment

Banking
Real

V

*

Alaska Opens the Door to Mutual Savings Banks

(Boxed)

__

Co., Inc.

Broadway, New York 5

DIgby 4-4970

29

Export Difficulties

291

Regular Features

they

are

not, employment op¬

portunities will fail to grow and
may even shrink.
Out of the whole production job
—labor and management working
.

an

and do expect
increase of something like 25%

in

the

together—we

can

standard

of

As

lamesbury Corp.

We

See

It

(Editorial)...

Cover

Bank and Insurance Stocks.

Business

Papercraft Corp.

14

....

American Int'l Bowling

Man's

Bookshelf

45

Coming Events in the Investment Field
Dealer-Broker Investment

BarChris

48

Recommendations...

8

of our

living

Singer, Bean

From Washington Ahead of the News—Carlisle
Bargeron

13

Indications of Current Business Activity

46

&

Mutual

22

HA 2-9000

Funds

....

NSTA Notes
News

About

Banks

and

Bankers

Wilfred

Our

Governments

Public

on

Utility

4

Los

this, of course, will have to come
from an increase in the produc¬
tivity of labor. We can reasonably
expect such an increase if both
labor and management continue

responsibly in making wage

Security

Securities

The

.

.

.

and

St. Louis

23
34

Security Offerings

Salesman's

The Market

Cleveland
Dallas
Philadelphia

Angeles

San Francisco

20

Securities Now in Registration

Prospective

Direct Wires to

20

May.......

inc.

40 Exchange Place, N. Y.

Chicago

Observations—A.

Reporter

mackie,

Teletype NY 1-1825 & 14844

47

43

Brokers

people over the 10 years. A part of

to act

Construction

Einzig: "Will Khrushchev Save Western Economic Unity?"..,. 14

Corner

33

You—By Wallace Streete

16

Security I Like Best

for

BANKS,

2

The State of Trade and Industry

5

Tax-Exempt Bond Market—Donald D. Mackey

6

DEALERS and

price decisions.

expansion of the next dec¬
ade must include, of course, more
than material goods. It must em¬
brace also the services and faciliContinued

on

page

Washington and You

Twice Weekly

Copyright 1960 by William B. Dana
■

The COMMERCIAL and.

PREFERRED STOCKS

INSTITUTIONS

48

26
Published

For many years we

Economic

workers,

young

minority groups,
mothers, and workers

workers,

farm

that

Can

the

test

The

Ahead
As

job

performance for our economyother than defense — during the
decade of the 60's.
In providing

and

Lists Performance Goals

we

expanding

of

lems

choices.

We

W.

in

electronics co.

year.

Greatly

,

compared with

as

2V2 million during the cur¬

tunities then will be a major

Growth

,

rent
,

of 18,

age

about

on

country.

on

the

going to

depends very

the "public sentiment"
of the 180 million people of this
largely

ing.

period in our history. In the single
year
1965, for example,, almost
4 million young people will reach

population

—Paul

Sizzles

n

for

6 jobs

provide

1970 we can pro¬

living."

so?

do

by

expanding

our

with
ard

dollars

that

hermes

—Phillip M. Hubbard, Jr.___.
Sputters and

intl. bowling

of Secondary Distributions

by

production of goods and services crease over the decade. This is
by about 50% from 1960 to 1970. because our labor force will be
"We begin the 1960's with a Gross increasing by well over a million /
National Product of 500
billion workers a year. The estimated in¬
of 13 V2
million workers
dollars. We can reach a level of crease
means

american
10

Short-Term Market Impact

7

5 existing today—a 20% in¬

every

mfg. co.

9

—Seymour L. Linfield

the fact that by 1970 our economy
Robert B. Anderson

i«£

Latin American Free-Trade and American Industry

that v

is great
enough, with
an
improving
technology, to

Soldofsky

currency.

our

;r , The dimensions of the task
lies ahead are indicated in part

tial

increase

of

—Robert M.

Reentered

CHRONICLE

FINANCIAL

ary

Reg. U. S. Patent Office
WILLIAM

B.

DANA

COMPANY,

25,

SIMMONS, RUBIN

Company

second-class

as

1942,

at

the

matter

post

office

Febru¬
at

New

York, N. Y., under the Act of March 8, 1879.

Publishers

& CO.,

INC.

Subscription Rates

25 Park Place, New York 7, N. Y.
'

Spencer Trask & Go.
Founded

1868

REctor 2-9570

GEORGE
WILLIAM

CLAUDE

Members

.

.25 BROAD

New York Stock Exchange

ST., NEW YORK 4, N. Y.

TELETYPE NY 1-5

TELEPHONE HAnover 2-4300
Albany

Boston

Nashville

Newark




Chicago
Schenectady

Glens Falls
Worcester

J.

DANA

D.

Subscriptions

to 9576

Possessions,

MORRISSEY, Editor
SEIBERT, President

SEIBERT, Vice-President

Thursday, April 28,

Other

Chicago

Thursday
issue)

Office:

3,

111.

States,

and

U.

S.

Members

of

Underwriters and Distributors

Complete Trading Facilities
TRADING DEPT. PHONE:
WHITEHALL 4-6627

Other Publications

(general

and

*

United

Union, $65.00 per year; in
Dominion
of
Canada,
$68.00
per
year;
Other Countries, $72.00 per
year.

1960

news and ad¬
Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.)
*

Every

vertising

in

Territories

Pan-American

135

every

South

La

Salle

(Telephone STate

St.,

2-0613).

Bank

$45.00

and
per

year.

Note—On

the

rate

foreign
must

Quotation

(Foreign

account

of

Record

of

and

Monthly,

Postage

the

exchange

subscriptions

—

extra).

fluctuations

remittances

in

BEAVER STREET, N. Y.

Telephone: WHitehall

4-7650

for

advertisements

be made in New York funds.

56

Teletypes: NY

1-4581-2

4

The Commercial and Financial Chronicle

(1^8)

4

"if 4

.

.

.

Thursday," April 28, 1960

1

FINANCIAL AND. INVESTMENT DATA ON MUTUAL FUNDS MANAGEMENT COMPANY SHARES

OBSERVATIONS...
National

would

investor-wise

FUND MANAGEMENT

tional

COMPANY SHARES
Decisive -current

intra

happenings

in

Fund management
companies' sector call for new and
broad analysis of their outstand¬
ing shares.'" "T ;
"
Mutual

the

This

.

Announced this week is the sale

data.

data

8.98

50.85

6.55

Securities

25.69

4.34*

Shares

22.87

404

288

358

'136

4.6

131/4

32.29
,68.83

7.52

2,010

275

296

5.3

9.15

280

163

137

3.0

27I/2
l61/2

"Net"

accom¬

table.

sales

proceeds of
received

actually

by

a

are

onslaughts, governmental
legal,
against r this sector,

two

and

under whose impact the outstand¬

former

-

8.1%

100

8.4

298

124

168

5.3

112

*

,50*.

16

n.a.

the approximate
our

market price, it

table's

•

demonstra¬

more

one

than two.

phrenic attitude toward that fac¬

sional

tor.

ous

On

tion of its demonstrated compara¬
tive value.

the

hand, the propon¬
ents of the Contractual plan tech¬
nique hold out as an advantage
the il-liquidity resulting from the
VALUE VERSUS
ear Her.. years'
disproportionate
->
"SEX APPEAL"
distribution charges (the "frontThe
share distribution results
end load")-Hn keeping the buyer
obtained
by two newly offered froml his "folly of cashing-in."
r
Funds
carry
broad .significance,
In direct contradiction to this

significant:
variable
rather
For example, the ratio with their portfolios committed to
far

is

involving

Testifying to "a certain state of the shareholder's
Commission

con¬

havior

is

ascertainable

from

our

cerning the existing scheme of datav For instance, our hunch that
things in the investment company they might be correlated with the
world," Chairman Gadsby, ad¬ respective fund's market perform¬
dressing the Boston Bar Associa¬ ance in the prior year is definitely
tion

ascribed it to
*
'the anomaly presented by the
management 'Contracts .which, del¬
egate to another entity many of
the functions normally performed
by the corporate board of direc¬
tors." Charging laxity and monop¬
olistic conduct in fixing of fees,
the * SEC
chief
c o n t in ue d,
"These phenomena of the invest¬
ment company world have raised
a question in the minds of some
observers as to whether mutual
funds have become captives of
on

April

13

disproved. (The company with the
most favorable redemption ratio
had the poorest market perform¬
ance in 1958.)
No doubt the an¬
swer must await the taking of a
nationwide shareholder poll.
Conclusions

By

a

to

conclusions

of

way

noted is

considerable lack of

be

cor¬

relation between past growth rec¬
ords
and
current
market
perf

o r m a n c e

shown

as

in

the

,

dividend

and

price-earnings
For instance,
the two
particular advisors, and whether yields.
directors of, or investment advi¬ companies with the highest priceearnings yields have been in the
sors to, the funds are fully acquit¬
ting their duty to shareholders." top echelon of "business" per¬
formance.
Worse news yet:—-the chairman
definitivised his plaint with the
And,
of
course,
the
broad
disclosure

that

Commission

the

is about to propose additional re¬
action via registration of

medial

mutual funds under the 1933 Act."
In this column of March 17 last

published
containing the
we

ment

original table
leading manage¬

an

companies, listing their

re¬

spective total assets; and on a pershare basis their assets, earnings,
dividends, market price, priceearnings ratio, and current divi¬
dend yield.

Now, in view of the interven¬
ing signs of vulnerability of this
fund sector to overall reform, it

one

representation

is

Which is it?

presenting a picture of gradual
and
glamorless,
but
relatively
A DOW DISCLAIMER
sure and steady,
seeping-through
of constructive earnings, its de¬
Dear Mr. May:
> V
gree of investor acceptance will
I am afraid I must plead "not
be highly significant!
guilty" to the title of Dow "Mae¬
The other Fund project high¬
stro," which you gave me in your
lighting our instant question has
column of April 13. I have done-a
now
become a fait accompli—or
little worko on the Dow Theory
rather un-accompli.
The Ameri¬
over a period of time and in a re¬
can Life Fund,
unable to attract
cent letter attempted
to outline
sufficient ftivestor and dealer in¬
the conditions necessary for the
terest has been withdrawn from
Dow- theorists to predict a change
SEC
registration.
Set
up
last
in trend.
However, in my opin¬
December as a close-end Fund, it
was
committed to long-term in¬ ion, the Dow Theory has been ob¬
vestment

in life

insurance

com¬

principally

reflect the
Fund buyer's urge to "get into"
a portfolio that is in fashion.
(As
a recent
Supplement of WhaleyEaton Service puts it, "When mu¬
tual funds are being talked to a
prospect, the salesman proudly
caveat must be included in the
points to the 'high quality' of the
form of realization that the sen¬ list.
Everybody
has
heard
of
sational growth in sales and rise General Motors.... In fact
a pros¬
in ass%t values, which constitute
pect might be alarmed to find
the major bases of management
many of these names not listed
company earnings, have been im¬ in the holdings of the
fund.")
portantly stimulated by the longThe investment world's presentcontinued
Bull
Market.
Since
day "alarm" over American
this is an over-all impact, it in¬
Life Fund contrasts with the avid¬
creases further the importance of
ity of the public five years ago for
our
c o m p a r a t i v e
companya similar fund, Life Insurance In¬
to-company data.
vestors (underwritten' by White,
Confirming the value of such Weld & Co.). Brought out at a
data, via practical market test, is time when the
life
companies
this week's above-cited sale, .of were
booking barely half their
Waddell and Reed. For in fetching
present volume of business, with
substantially less lucrative avail¬
able interest yields and with their
shares selling at far higher~pi*iceearnings ratips, than now; but .in
an atmosphere
of intense specula¬
seems

to

.

tive -enthusiasm

the

in

the

earlier

quickly swept up to

life

stock

issue
a

was

50% pre¬

mium*

1870

Along with the absence of the
stocks' current lack of style
appeal to supply the windowdressing needed by the American
Life Fund's would-be distributors,
is the life stocks' deficiency in the
life

Correspondents inprincipai cities

visible

throughout the United States and Canqda

liquidity which has been

exerting ever-increasing appeal.

OF INVESTMENT SECURITIES
f

4

:

t'

i

r.
.f

»

I

a

.

"

*

„

.<

I

Value.,
*

Dominick

&

Dominick

Members New York, American & Toronto Stock
Exchanges
14 WALL STREET




3.4
4.7

5.5

security analyst, the vari¬

forms

be

a

of

technical work

NEW YORK

THE

*

'

*

"tool"
realizes that it is

#

v.
v

SCHIZOPHRENIC

LIQUIDITY ATTITUDE
This

citation

of

the

liquidity

element brings us up against the
fund

industry's

basically

work

have

I

stocks

of

course

listed

broken
the

on

used

praisal

of

the

prospects

down

the

York

New

Exchange into groups in
study each group sep¬
arately. I maintain some 46 group
to

graphs,

including one classifica¬
tion which is continuously getting
larger, called "miscellaneous."
Many

of

the

stocks

in

groups were not even in exist¬
25
years
ago-and some

groups are entirely new indus¬
tries.
To expect all of these

Edmund W.

-

Members, N. Y. Stock Exchange,
City, April 18, 1960.
If

seemed to

we

Tabell

is

Theory,

imply that Mr.

addict

an

of

Furthermore,
piction

of

we

the

same

the height of folly.
Ours is a very complex economy
and can no longer be even vague¬
ly measured by an average of 30
stocks, or even 425 stocks.
me,

archaism
And

schizo¬

and

"sy/s tern's"

basic

fact, in

our

the term

even

"bear

Bull

of

and

Bear

sorily regarded

markets

"bull market" and

outmoded. There
individual

and

been in

a

is

more

or

less

are

many groups
issues that have

bear market for

just as there are
groups that have been in
year,

over

feel

do

that

"technical

the

embracing of

system"

a

ket" of 1957, when the Dow-Jones
Industrial average fell some
20%,
it would have been possible to
have been fully invested in equi¬
if
of

realized

and

a

sizable

profit

owned the "correct" groups

one

a

is

generally
motivated by the difficulties en-

p0upfa^4 in appraisal of invest¬
ment-value; without realizing
that this merely involves jump¬
ing from the, frying, pan into the
fire.

Mr.

tools"

Tabell's

"technical

indeed

may

be

useful

in

anticipating the relatively shortterm

fluctuations

stocks.

in

But

of

of

individual

his

long-term

the Averages he has

outstandingly
successful
for the Dow Jones after it
We sus¬
pect that over the short-run he
(700

had barely risen to 300).

has

"played-it-by-ear," and over
the long-term by value-conscious¬
ness, both tool-lessly, to a greater
extent than he realizes.

Morris Cohan

Branch

Opens

on

Pac. Coast

LOS

ANGELES, Calif. — Morris
Cohon & Co. has opened a branch
office at 5820

Wilshire Boulevard

Also

new

branch

man

and

associated

of Martin
with

the

Leonard B. Kauf¬

are

Murray Garrett.)

With Federman, Stonehill
(Special to The Financial Chronicle)

HILLS, Calif.—Rupert
King has become associated
with Federman, Stonehill & Co.,
9025 Wilshire Boulevard.

formerly

with

Union Securities &

thereto

was

He was

Eastman

Los

Co.

Dillon,

and prior

Angeles Manager

for Shearson Hammill & Co.

many

an up¬
ward trend for various periods of
time. In fact, in the "bear mar¬

ties

illu¬

unit.
Regarding "escape" via those
"wonder drugs," our concept with
which Mr. Tabell takes issue;—we
as a

C.

complex economy

market"

delusions.

applaud his emphasis on
analyzing individual issues, in
lieu of chasing an imaginary trend
we

BEVERLY

Outmoded Terminology
In

our

grateful

are

that

Lynn.

is, to

Dow

for his authoritative and lucid de¬

the
time

the

hasten to extend

we

most humble apology.

under the managemeiit

at

Tabell

New York

groups, old and new, to move in
direction

each

Walston & Co.,

these

ence

same

of

individual security.

been

Stock
order

only

of the many "tools" that must
in a well rounded
ap¬

one

be

forecasts

technical

my

pro¬

.

Height of Folly
the

In

Join Thomas Jay Winston
(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Charles
K.
Godfrey, Idell H. Lea and
Ernst Platschek

are now

affiliated

with Thomas

Inc.,

Jay Winston & Co.,
Wilshire Boulevard.

9235

utilities, drugs, food chains, and

Dempsey-Tegeler Adds

"Tools," Not "Wonder Drugs"
In

your

final

paragraph

you

mention the mathematical "won¬
der drugs" like
moving averages,
point and figure "work" and the
like
as
all

offering glamorous
from the hard, realistic
investment life.
If you

escape
.,
■*
'

great many years.

a

can

valuable

very

vided he

tobaccos.

Surely, the failure to distribute
growth and value-laden is¬
sue, midst the concurrent boom
distribution
of
Blue
Chip
and
other units in fashion, constitutes
another
sign-post marking the
fund investor's road away from
this

UNDERWRITERS AND DISTRIBUTORS

solete for

pany stocks.
This abortive distribution result

market,

r*

4.8
"

Results disclosed by questionnaire to companies.

.

the

5.5

Not ^available.

•

of

4.2%
.7.0

acknowledgment is gratefully made to May & Gannon, Inc., Boston, for the use of data specially
compiled by their statistical department, aIqng with

the industry's
based on sales could show a con¬ common stocks that are compara¬
ing stocks have lately suffered an
attitude toward the product which
"illiquid" and otherwise it
investment "fating change" — re¬ siderable increase if sales went tively
(including the Plan-distribu¬
flected in a 10% paarket decline down, even though redemptions without the "sex appeal" suitable tors
themselves)
is
selling
—
constant. ' And,
other for "window-dressing" purposes,
-—from "dynamic growth" to "vul¬ remained
namely, the open-end Fund. For
factors remaining unchanged, of
One of these, the Franklin Cor¬
nerable speculation."
one of the basic advantages con¬
course
the redemptions will in¬ poration, organized this week un¬
Overhanging in the legal area
stantly claimed in its behalf, par¬
crease
as
the outstanding "pool" der the aegis of the Franklin Na¬
is
a
widely-publicized
stock¬
ticularly in justifying the load
tional Bank of Long Island, will
holder's suit, alleging collusion in steadily increases. Using concur¬
rent sales figures in the ratio re¬ operate as a closed-end manage¬ (buying commission) and its dif¬
contract
determination,
brought
ferential above the discount (be¬
minds one of the public's miscon- ment company, providing capital
against one .of the leading com¬
low I asset
value) at which the
strual
of
U.
S.
Savings Bond along with technical assistance,
panies. Of greater importance is
closed-enders are usually avail¬
redemptions
when
so calculated. to selected small companies pos¬
the presaging of stepped-up regu¬
able, is the liquidity provided in
No
specific factor motivating sessing "potentialities for invest¬
latory action.
the constant redemption privilege.
appreciation."
Seemingly
redemption be¬ ment
malaise

Yield

171/4%
8V2
"171/4

Our

validated

denote

sales

large block of * voting stock the company after payment of
by the two principals in Waddell commissions and other expenses.
We show redemptions as a per¬
ahd'Reed, Inc:, with a prospective
centage ; of net assets ' instead of
realignment of the management.
On the other, side of tne ledger sales as is sometimes done. The
of.

n.a.

184%

105

188

- •

embodied in the

as

&

75%

157

.235%
,

Earnings

do in our expansion of

we

panying
share

.*

Current
Price (4/25)

% of Assets

$5.30

'"On gross sales; net not reported,

addi¬

industry 'cdmpariy-t6-66in-

-

pany

introduce

to

information * emphasizing

,

Redemptions

42.19

& Research Corporation...
Management Corporation....
Reed, Inc
Wellington Management Co., Inc.

timely and valuable

seem

Price-

Gain

1954-59

$26.92

Television

A NEW LOOK AT THE

1954-59

Sales

Funds, Inc
Inc.....
Hugh W. Long & Co., Inc

Waddell

Sales

Gain

Assets Admnstd.

Assets

Keystone Custodian
Distributors Group,

BY A. WILFRED MAY

"

Gain
Earns.

1954-59

Per Dollar of Market

Valuatn. of Shs. Outstdg.

facts of
refer

to

the

pects to reap
the

use

of

a

individual'wh6
a

ex¬

quick fortune by

few charts and

graphs
method, and
nothing else, you are probably
right.
However, to the profes¬

and

a

mechanical

(Special to The Financial Chronicle)

LOS

ANGELES, Calif. —Alan E.

Adams has become connected with

Dempsey-Tegeler St Co., 210 West
He was formerly

Seventh Street.

with Binder & Co. Inc. and Alkow
& Co. Inc.

,

Now .With Dean Witter

BOSTON,
Mantineo

Mass,
has

Street.
H.

L.

He

was

Robbins

Andrew

—

A.

connected
Co., 125 High

become

with Dean Witter &
&

formerly
Co.

with

Volume 191

Number 5946

.

.

Financial Chronicle

The Commercial and

.

tors

all

of

There

(1829)

the-Latin

Republics
weakening in the

was some

Steel Production

currency
(the
SOL)
during the first half of 1959 but,
with the entry* of a new Cabinet
in
mid-summer, strenuous
and
effective steps were taken to sta- HP"P A pvTTt

Carloadings

The State of

bilize

international

the

Retail Trade
Food Ptice Index

Auto Production

TVTTMTOnnDTT

Business Failures

XJLvr\.lJIli all CI llNllJUbxlvx

of

rate

i

»

Electric Output

Peruvian

.By Dr. Ira U. Cobleigh, Enterprise Economist

5

exchange, aided by bor¬
rowings from the International
Monetary Fund and from ImportExport Bank.,
*

Commodity Price Index

currency

A brief report on the substantial rise in earnings power and total
assets of this

There is

a

distinguished miner and fabricator of non-ferrous metals;

major 'American corporations to¬
day, toward expansion of the per¬
centage of total plant investment"
in, and sales from, foreign opera¬
tions.
Cerro de* PaSco. Corpora¬
tion, however, has been doing a
splendid job of profitable' expan¬
sion by doing the opposite.
The
decade just ended has seen this
well: managed metal enterprise
effect a major transition from a
producer of primary non-ferrous
metals, operating entirely in South
America, to a more completely
integrated mining and fabricating
company with about half its assets
in

the

of

United

The

States.

from

effect

this

to

substantially
swings therein.

Cerro

de

entirely

cyclical

reduce

1959.

-

In the

same

illustrative

the

of

impres¬

Major

dimen¬
end of
1949, total assets have risen from
$58 million to $246 million at the
1959 year-end.
Today, Cerro de
Pasco
ranks
among
the largest

the February high levels while overage weekly hours and weekly
employment declined and unem- earnings decreased further; Gov*
ployment
increased.
Inclement ernment employment rose considweather early in the month lim- erably, mainly because of hiring
87 million short tons of commer- ited some activities. In late March °f
Census enumerators.
Unemcial grade ore reserves.
i
and early April, there was a Ployment rose substantially, with
uiT''"'marked pickup in auto and de- the seasonally adjusted rate inPosition or the Common Stock
partment store sales. Total bank creasing to 5.4% of the civilian
But enough
of this / corporate credit declined further in March, labor force from 4.8% in Febru-

mining property in
and Santiago ProvChile, development work
here has already proved up about

Pasco

has

entered

lead, ^inc,
believed

silver,

and

to

an

the low cost copper mines of the
world.
Seventy million
dollars
have been spent there in the past

of the

of

achieved

this
in

of

growth

has

been

part by plow-back
and importantly by

earnings,
acquisition
and

Company was
acquired in 1956. On March'" 25,
1959, the corporation exchanged
201,333 shares of its common stock
and $26,311,700'in'new 5 Va.% Sub¬
ordinated Convertible Debentures,
due

"also

smelts

from

refines

and

from

ores

benefited

have

pansion

As

operates
metal fabricating plants in

seven

,

a

Pasco

de

Cerro

the United

»

States with

annual

dated

.

now

fU
•

Ten Year

^Before

of

volume

sales

about $125 million.

consoli-

a

C

.

£?■?:?,?;.

Progress}

inventory

e

accumulation

slowed considerably.
Commodity
T

.

Prices

;™y

.

father,

va
70.6% ex- March rate.
Output of apparel,
share holdings, furniture, and
some
appliances

by

their

in

CDP has further achieved

con-

a

aiso

.

reduced

was

further

(NYSE) yielding 5.25% to maturity. It enjoys a long conversion
^

1968) into CDP
a share;
While
figure is about
18
points
a bo ve
the
present
market on the commioh, it should
be recalled that, on a similar convefsioh basis in 1956, these debehtures Would have sold at 155.^^

(until

<

While output of construction ma—
terials and mineral fuels also de—

that

at

•

clined in March, production of
nonferrous metals recovered

Credit 'And

Reserves

.

Commercial

bank

credit

^es exceeded a rise in loans.
While the expansion in total loans
was moderate, loans to business
^ose substantially. On a seasonally

adjusted basis, the money supply

increased $400 milion after having
*
billion in
first two months of the year,

duction of nondurable materials
maintained.
\

The seasonally adjusted rate of
turnover °f bank_ deposits ^de-

Over-all

was

-

a

Construction
-p

.

r

hrt;1(!jntf

,

Member bank borrowings from
the Federal Reserve averaged
Thp^easonaHv $640 million and excess reserves
Maroh

at

a

anS ra£

nf

in

SnX

?!

$49.43

conversion

sharp

February.

c+Qrfc

in

S

fnr

SpViISS Tn

Mnrrh

q

huVimV

rp

tttfe'

^ivitv
roistered
activuy registered

of

million
during the four
weeks ending April 13. Over the
Period» required reserves declined, despite a mid-March in$440

nfw

niar-a

.

ron?frurtfon

some

decrease

associated with credit and
deP°sit expansion around the tax
crease

some aecrease. d a ^ e. Reserves were absorbed
earnings and prospects generally, sites* / ^ , ■ *■'■/ .a '.v.. - *. 1 ■ a.'
\ * ■" And you have over 7 %
years of
/
/
Employment
: primarily by an outflow of cur/
The
political and economic cli- conversion time at your disposal,;
we ought to review a; few more, of
After reaching a new high in rency, a decline in float, and a
the achievements of the past decr ; mate in Peru has been among the
during which period a: substantial February, seasonally adjusted em- reduction in Federal Reserve Sysade, in additiott to the asset ex¬ most faVdrable lo foreign inves- advance in CDP would not seem ployment' in nonfarm establishContinued on page 32
t

touching

upon

-current

-

,

;

v

con¬

tinued to decline in March as a
further reduction in bank holdof U. S. Government securi-

*

s.

J

,

pro-

further.

somewhat

31,

Dec.

common

■

'

in

March, while production of consumer staples was maintained.
Steel
mill
operations
slipped
further
to
92%
of capacity in
March, and dropped to a scheduie(j r'ate 0f 80%
in mid-April.

'

Conn.

Ir\ some lines, sales-production
relationships improved and the

mainly reflecting increases in some fresh foods, and
the combined index of wholesale
ers, and stockholders retaining all uies
for
April
indicate
little Prices a'cWaftb&f to' abdhT the yearstock dividends since 1951 would
change in assemblies^ from' the ago level.

other

production. Cerro's earnings from
its equity in this company may
reaph an anhual rate of about $2
a share, during the present year.
Also in Peru, CDP (NYSE, symbol
for the common stock), has ex¬
tensive gas and. oil concessions in
the Eastern, Section and has com¬
pleted.; preliminary
search •; for
prospectively
attractive
drilling

more

auto
the
favorable,

products for the most part were
stable. Meanwhile, average prices
*arm products and foods rose

—

plant at New Raven,
result of this mqrger,

early

nals advanced. Prices of finished

1979, for the assets and 1959 than in 1958. The total ag¬ siderable stability in its earning
of .Consolidated Copper- gregate production,
even
under power with average net income
mines Corp. This was a $35 mil¬ those circumstances, was impres- (before depletion) of $9 million
lion deal. It brought in two new "sive
257 million pounds of all during
the entire 1950
decade,
fabricating companies controlled commercial grades of copper, lead This stability has been further
buttressed
V.
V' '"■/
by Consolidated, and now oper¬ and zinc.
by the expansion in
In addition, to its own mining finished product-■ fabricating
ated
as
divisions
of
Cerro
de
op—*
Pasco. ; These
are - Titan
Metal properties in Peru, Cerro de Pasco erations• already outlined.
Manufatcuring Co., manufacturer Owns a wire and cable fabricating
For those seeking to enter the
of quality brass and bronze rods, subsidiary,
a refractory
and an CDP picture on a more conservaIt also tive4 basis there is available an
wires, forging and castings;, and explosive-making plant.
Rockbestos Wire and Cable Co. owns C a 16%
interest in South
interesting convertible 5V2%' dePeru
"
Copper
Corporation,
>■ an
specializing in heat and flame re¬
benture
(created to finance the
sistant insulations and the manu¬ amazingly efficient new producer Consolidated
Coppermine mergfacture
of
electrical wires and which has only recently entered er).
It sells
at around
102
a

and

the

rates, and output of materials
substantially Unchanged

in

in

March

was

a year, provides
current yield in cash,

3%

business

cables

late

corporate policy has been to February level.
declare 5% in stock in each year
Among consumer goods seasonsince 1950 (except in 1956 when
aUy adjusted auto assemblies dethe
distribution
in
stock
was
clined further in March to a level
10%).
This dividend policy has 15% below the January high but
been favorable to long-term hold- in% above a vear earlier" Sched-

a

and

mine op¬
erators in Central Peru.
Partly
due to a 14-day strike, Peruvian
production was 10.7% lower in

.

In

industrial commodity prices on
average changed little in
March and early April
While
Price declines occurred for some
materials, prices of other mate-

over

centrates its

purchased

level.

January

were

dividend, rate $1

possible. The Peruvian sub¬
sidiary not only mines and con¬
own ores for export,

Aluminum

mont

ll\POints figure and 2% below the

low, although 1959 high. Production curtailments In
decidedly on the March, as in February were prifavorable
side.
For
1959,
per marily
among
consumer
goods,
share
net
before depletion was
Activity in business equipment
$3.65 against $2.28 for 1958. The lines
was
maintained
at
peak

has been

ores

within

are

1960

earnings

made

Fair¬

merger.

v

treatment of leaner

the

of

decade, in capital improvements
including mine mechanization and
additions
and
improvements
to
concentrating mills. As a result,
the rate of mining and milling has
more than doubled, and profitable

world's known copper reserves.
All

31 the shares

Distribution
Retail sales in March remained
at
about
the January-February

weather became

Industrial Production

and, by most criteria of compariThe Board's seasonally adjusted
son, it is a far better equity today, index of industrial production in
although it is selling at less than March was 109% of the 1957 averhalf of its (then) price. At around
age — 1% below the
February

have

operations

aiY

Treasury, securities'turned up and April, department store and
then rose sharply in mid-April.
sales rose considerably as

historical
standards
the
stock
displays much current
merit.
CDP sold at 77% in 1956
By

in Peru, and the operating
subsidiary there includes one of

it is

and

about 5%

own

mining

..

catalog. What about CDP stock? but on a seasonally adjusted basis
Is it a good value or isn't it? What the
money
supply increased.
are some of the reasons to prompt
Yields on fixed income securities
its purchase by prudent investors generally continued to decline unin today's market?
: /..,
til late March when yields on

order of magnitude.

new

.

.

been

producers and refiners of copper,

important

an

inces,

'

As

was

*s.sue
Federal Reserve Bulletin,

Vi1

Ancohcagua

Peruvian Operations

sive changes in corporate
sions note that, since the

ments declined 214,000 in March.

Blanco Copper

in¬

the

corporation provided
business capital of *$206 /million,
$ 127 million from retained earn¬
ings, depletion and depreciation.
Working
capital was
increased
from $22 million to $80 million.
To stockholders during the decade
there were distributed $20 million
in
cash
dividends
and
757,891
common
shares (worth $29 mil¬
lion at Dec.
31, 1959) as stock
dividends. Thus, within 10 years,
in corporate stature, assets, earn¬
ing power and future prospects,

major structural change
in operations has been to broaden
the base of earning power, and
•

$29

million in

terval

summary of general

l)V^ness and financial conditions Bad weather

influence in reducing employment
Blanco Copper Corporation, Ltd.
in construction »and tradO." In
industries, emto increase annual sales which has the option tq purchase, Industrial production and-retail manufacturing
million in 1949, to $158- good till Oct/ 1, 1960, the Rio sales in March remained close to Payment declined slightly and

able

was

The following

Further down in South America,
CDP owns a 17% interest in Rio

pansion already cited. The over-all
improvement is truly remarkable.
In the 1950 decade, Cerro de Pasco

noticeable trend, among

incredible.-

In

earned

a

$9.76

be

regarded

tion

or

^

to

^

-

It

paint,with
of

ture

as

.'r

r.

..
.

a

has become associated with
as

Manager of

our

Trading 'Department/

.

;

•

a

THOMAS E.

in

our

.

.

.

as

•

TUSCALOOSA,

i

wards

\

Sons

&

Ala.—A.
have

G.

Godfbey,

Ha^milton,

lOl Park Avenue

V* '7V '."rr

|

vr




;

MtJiray

.

a

\

Ed¬

opened \ a

Vice President and Director of

our

firm

'

"

Magnus & Co., Inc.

*]SrewYorkl7, N. Y.;
l^ 64540 ^ v:
^

Matkin,

to TirE Financial ChroniciTe)

CHICAGO,

;

;

;

Members New York Stock Exchange

„

"

111:

-^-

Michael

"

A.

1

■

872 Main Street

with

Lee

has !become ; affiliated

Higginson Corporation,

231 South La Salle Street.

:

45 Wall Street

'1

j BRIDGEPORT 3, CONN.

-

-

-NEW YORK 5,

Y.

far Del*field & Delafield)

,

O'Bannon

'

:

.

'(Special

Established 1907

,

Jr.

With- Lee Higginson
"

(

HINCKS BROS. & CO., INC.

branch office at 409 Twenty ^fourth

W.
^

Stock Exchange

modern

New Edwards Branch

us

.....

^

MURRAY, II

Member New York

produc¬

Street under the directiomof Thad
...

pleasure in announcing the election of"

We take

se¬

corporate im¬

company

metals

economy.

CDP

of

broad brush, a pic¬

substantial

vital

ing

I

^

„

•

v

merely designed

was

provement in

MR. STEPHEN L. BLANCHARD

:

recommenda¬

any

endorsement

curities.

pleasure in announcing thdt^

stock
;

The foregoing is in no sense to

-

We take

the

1956

share.

'

April 26,T%0

1

V

f

V

6

TAX-EXEMPT BOND MARKET

"™-a " *

BY DONALD D. MACKEY

Not

'

quiet
and
slightly easier market,
as
measured by secondary offerings,
After several days of a very

the

4.00%,

virtually

issue

reported

is

as

sell-out.

a

sprung
issue ac-

tivity on Tuesday. Three sizable,
general market, highly rated issues were bid for by dealers in a

bined group headed by The First
National City Bank of New York
and The Chase Manhattan Bank

the

tax-exempt
considerable

market
new

fashion,

competitive

highly

at

slightly below the prevailing

rates

level.

issue

new

their bid of the equivalent of

on

.

3.856%

interest cost. The

issues

involved

bear

several
coupons

varying from 3%% to 3.90%. The
Issues

Recent

Ohio

Cleveland,

Well

Go

yields

have

bonds

usually been in general demand
by institutions and other investors
when
age

priced at better than averyields Its offering of $13,275,-

000

(1961-1980) of issues seemed
existing demand better than

to fit

other recent tax-exempt ofexcepting of course, the
Triborough
Bridge
issue
marketed last week. The high bidding
group
for
the
Clevelands
was
headed
by
The
First
National
Bank of Chicago and included the
any

fering,

Bankers

Trust

National

First

Company,

The

City Bank of New

York and the Chemical Bank New
Trust

York

Comnanv

The

interest

and

bonds

cost

others

and

bid

3.38%

was

priced

all the issues run from

on

2.65% to 3.90% depending on the
figth of issue. It would appear
that the bonds are attractively
priced and may meet with considerable investor interest. - r
Although dealer bidding for
new State and Municipal bond
issues has continued at a highly
competitive rate during the past
week, general investor interest in
these new offerings has not been
a$ great as it was earlier in the
year,'when yields were generally
20/100's to 25/100's higher. As a
consequence,
dealer inventories
have been building up and, altb°ugh

moderately

still by

are

no means an

.

.

Thursday, April 28, 1960

.

Larger Issues Scheduled For Sale
the following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set

In

Market"

Although the market has risen
several points since the first of
the year, underwritings have not
been consistently profitable. Were
issues less scarce, and were
competition less cut-throat, profit
margins might indeed be more

Information, where available, includes name of borrower,
of issue, maturity scale, and hour at which bids
will be opened.
••
amount

t

April 28 (Thursday)

inventory

Cascade County S. D. No.

10:00 a.m.

a.m.

1961-1989

11:30

a.m.

30,000,000

11:00

a.m.

2,100,000
2,873,000

1961-1985

8:00 p.m.

11:00

1961-1985

a.m.

1962-1990

7:30 p.m.
4:30 p.m.

1961-1980

11:00 a.m.

1961-1980

9:00 a.m.

3,100,000

1, Mont.

The "Blue List total has m- Douglas County, Nebraska.
1,000,000
creased substantially in the-past;
/
:
May 3 (Tuesday)
week. Yesterday's total of $351,- '
Cook County, Illinois
9,500,000
,373,500 is higher by about $50 milExcelsior Union High School Dist.,
lion than the total of a week ago.
\ California.—.
.1,165,000
- While the current aggregate is not
close to being a record high Harper Creek Comm. Sch. Dist.,
*. Michigan-—-—
1,585,000
-—.1—amount, it has reached appoint
Minnesota
48,820,000
beyond which it becomes techniNew Rochelle School District, N. Y.
1,270,000
cally a negative factor to the market. There are at least forty new Pearl River Valley Water Supply
8,800,000
issue accounts listing substantial ■^District, Mississippi
balances in the "Blue List," not Rocky Mount Admin. Unit, North
Carolina
1,000,000
including this week's issues, evi—

——

1962-1989

8:00 p.m.

1961-1979

10:00 a.m.

1961-1980

Noon

"

dencing

unwieldy

sequent

slowdown in sales sub-

a

to

initial

sort of thing

has

offering.

brought

This
about

Walla Walla County School
No.

140,

1964-1999

10:00 a.m.

1961-1985

11:00 a.m.

1,700,000

1962-1980

10:00

a.m.

2,750,000

1961-1989

11:00

a.m.

District

Washington——

Wheatfield, New York—

yield

to

less than $1 million

are

1961-1990

1966-1999

from 2.50% to 3.60%. At this writ-

ing there

10:30

6,966,000

r
,
Tndirmpii^
price cutting but has not appreciMay 4 (Wednesday)
Good Pri€m^ Judgment
ably diminished new issue bidding Dumont School
District, N. J
3,000,000
The successful underwriting of ardor.
;v
V< King County, Shoreline Sch. Dist.
bonds remaining in account and the
$100
million
Triborough
The relative scarcity of high
No. 412, Washington—
1,000,000
a
highly successful underwriting Bridge and Tunnel Authority is- grade marketable issues, a better
Lincoln-Sudbury Regional School
is reported by managers.
sue was stimulating to the new stabilized Treasury Bill and Bond
District, Massachusetts
1,000,000
The $15 million State of Tenissue market. Although the mar- market, an erratic stock market Public Housing Authorities
133,410,000
nessee
(1961-1980) issue has also
a"d
condition? difficult to Roseville, Minnesota
1,000,000
met with
an
unusuallv
good indisappointing, the issue seems consistently comprehend, impel
May 5 (Thursday)
vestor reception.
The successful
' Md"* ThP
market l631"5 i)°t
Stay with
; .
group was headed by The Chase °f. a premium Awd^Th*e
™»rket the market. It is for these reasons Central Contra Costa San. District,
Manhattan
the Harris Trust and
Price on Apul 27 was at 99%-100. and perhaps others that investors / California
2,900,000
were

1961-1980

May 2 (Monday)

'

Mounting

Inventory Mounting

2:00 p.m.

1961-1985

2,000,000
7,000,000
1,000,000

Abilene Ind. School District, Texas
consistently realized. A year ago
Harris Com ty, Texas-v—,
with
considerably heavier new
Hidalgo County, Texas__—
issue volume, our industry was
Oyster Bay & Babylon Union Free
accomplishing a formidable job of
School District No. 22, New York
merchandising; recently, a generSacramento Municipal Utility Dis¬
ally good job of merchandising..
trict, California
^—-has not been accomplished, despite the fact that the headlines Southgate Community S. D., Mich.
Union City, New Jersey-.--—,
generally infer a bull market.

they

heavy,

for dealers.

carry

-Bull

a

new

Yesterday morning, the City of
New York awarded $75 million
serial (1961-1990) bonds to a com-

into

Chronicle

The Commercial and Financial

(1830)

1961-1983

8:00 p.m.

1962-1975

11:00 a.m.

1961-1980

11:00

.

1962-1981

——_

a.m.

7:30 p.m.

...

11:00 a.m.

;

Savings, the Bankers Trust and
Blyth and Company. The bid was
the equivalent of a 3.318% interest
cost.

Scaled

to 8.35%

to

yield

from

2.40%

the managers reported

balance of $6 million

day morning. In the past, State of
Tennessee
with

the
sue

issues

shorter

second

have

been

maturities.

longer term

is-

the state has sold and,
predecessor, has been welby
certain
institutional

corned

buyersThe

$16

million

and

America

Angeles,

District

was'awarded

managed

group

Los

School

(1961-1985)

by

the

included

issue

■

to

the

Bank
The

of

First

tional Bank of

Chicago, Blyth and
Company and many others. This
good grade
high yielding issue

also

with

met

congenial reception. The bid was the equivalent
of a 3.87% interest cost and bonds
were
priced from 2.40% to 101%
for 4%

a

bonds.

The

balance

is

re-

ported at less than $4.5 million.
Another
issue

t

'

Secondary

Market

complete
involved

that

received

approval
the $8

and Jefferson

of

the

investors

million Louisville

Counties, Kentucky

Metropolitan Sewer District (1978-

an00i/tJreltbcosTaofeq3U99|IenThe
managers

were

and

Imith,

and

the

Blvth &■

Barney

group

Com nan v

&

Company

included

Lehman

Brothers, Goldman, Sachs & Company,
ner

&

pany,

Merrill Lvnch
Smith and
as

Priced

to

well

yield

many

the

abreast

of

the

This wasthe

from

The

3.97%.

3.60%

to

J

Connecticut (State)

vear

drifted to 3.47%

on

3.45% last week

(April 20). How-

this would

ever,

the

basis

market
down
a

indicate

current

offerings,

an

point

L

of

April 27 from

average

the

dealers

the

selm

willingto

are
a

Va

is
of

to point

tot

fact

on

market

of less than

This would

again

that

secondary

manv

buy

new

higher level than exists

for current offerings, without regard to the apparently trendless
secondary

market

with

its

scar-

city of large, attractive blocks of
bonds.
•'
' In

order

to

get

appropriate

sues smce reporting a week ago.
Early

v

Th

New

paiPnriPr

jSSUGS

;s -oniv

nf

hpaJv
%li-

£!!"ethif

•

•

1961-2000

l!°n Sacramento Municipal Utili«4Q «

millinn

SL+o

Jacksonville, Fla.

il N™
bond° tr/h,
b°"m 1° be,

well

1/manv

W

> .Z"th°rlty
?d M?y 4' "
imnoV/nt
!!

bl°CkS °f b°ndS f°r portfolio'

some scheduled during the same period
of the banks have found it neces- will appeal to institutional and
sary to bid progressively higher otter investors. However, at the
for

new

recent

issues. Thus many of the

new

issues have

been

well

n-i«ht well^nofo th
dealers
lantini^
Inrf
1J?vestors ?re
cautious and extremely- sensitive
+

o

same

relative level, without

™aJ

ap-

Ipeal for the banks, have met with

requirements

31/2%

Maturity

,

have

not

satisfied

ax ~ exemPt bond
'

,

I- Magaril OpeilS

Bid

Asked

1978-1980

4.00%

3.85%

BROOKLYN, N. Y.—Jacob
garil

3.50%

3.35%

3.45%

3.35%

3%

1978-1979

3.35%

3.20%

33/8%

1974-1975

3.25%

3.10%

Vermont (State)

3%%

1978-1979

3.25%

'3.10%

3%%
32/4%

1977-1980

3.55%

3.40%

1

1978-1980

3.90%

3.75%

Now Nast Co.

cfn&', Ohio"::::::::::::::::: IH1 \Z
chka?oleins'La
I'll !S?2
April 27, 1960 Index_3.470%

Parkway. He was formerly with
Bache & Co. and Walston & Co.
Inc.

®
t

»■ Nn

11:00

a.m.

1:00 p.m.

1,070,000

1961-1980

2:30 p.m.

Newport News, Virginia.—

3,000,000

1961-1990

3,445,730

1961-1970

2:00 p.m.
1:00 p.m.

—

Illinois

■

1961-1978

Noon

1962-1999

10:00

a.m.

6,000,000

1961-1975

11:00

a.m.

2,000,000

1961-1998

1,120,000

Colleges, Board of

Regents, Texas

-

1,401,000

——

Authority, N. Y.

5,500,000

Mav 11 (Wednesday)

I-

Colorado Springs, Colorado
Colorado State University, Colo.—
,

Southeastern Oakland Co., Mich...

2:00 p.m.

3,500,000

1961rl984

11:00 a.m.

1,110,000

1962-1991

11:00 a.m.

1,250,000

2:00 p.m.

May 12 (Thursday)
City School Dist., Ohio..

1,100,000

1961-1980

Noon

1961-1980

Noon

May 16 (Monday)
Chillicothe

School District,

Ohio—

1,000,000

May 17 (Tuesday)
Bridgeport Comm. Sch. Dist., Mich
Cincinnati, Ohio

2,200,000

Hot Springs. Arkansas
Lawrence Township School
New

8:00 p.m.

1,055,000
1,300,000

1961-1978
1963-1990

2:00 p.m.

1,188,000

1962-1981

2:0" p.m.

11:00

a.m.

Dist.,

Jersey.—

<"

Phoenix, Arizona

-9,000,000

Pittsburgh, Pennsylvania
Terrebonne Parish Con.
No. 1,

1961-1989

9,515,000

;-

Green Bay, Wisconsin___

________

3,750,000

Sch. Dist.

Louisiana

1,000,000

1962-1985

10:00

a.m.

May 18 (Wednesday)
Princess Anne

County, Virginia___

Mississippi

2,500,000

1962-1985

5,000,000

May 19 (Thursday)
New

Baltimore, Michigan_________

Detroit, Michigan
Detroit School

continuing in

in Nast-German Co.

1,290,000

1962-1989

8:00 p.m.

May 24 (Tuesday)
9,325,000
10,000,000

_____

District, Mich

-

11 &T5»WT»S
parcner

1961-1980

I. Ma-

is engaging in a securities
business from offices at 80 Ocean

list

a.m.

30,000,000

_z_

and S133

ml

10:00

Neenah, Wisconsin

Fairview
•

r-

May 10 (Tuesday)

scheduled3for^davl^AnHl

«0ta bonds set for Mav 3

1962-1989

1,000,000

—

———

bonds

2:00 p.m.

1 2009

City School

season of the year. The
?nly alzable,lssues up for sale dur^ Hamilton County, Tennessee
tbe coming week, are $30 mil- Incianapolis, Indiana
i

1980-1982




"District, Ohio

cph^rhiiori

mndpmfpl

1978-1980

Calif

South Euclid-Lynhurst

Suffolk Co. Water

Financing

33/4%

Los Angeles,

1961-1980

3,500,000

—__—

State Teachers'

3%

Housing Auth. (N. Y., N. Y.)

School District No. 1, New York
Washington Toll Bridge Authority,
Washington:
v

have been Parma, Ohio
1° imP01 tan' new issues added to Rock Island County,

Jersey Highway Auth., Gtd.__
York (State)
Pennsylvania (State)

New

New

New

This

Chroniel^T yield the. Past «e?k- There

Financial

index for high grade twentv

Rate-

(State)

at

Actuations to report, during

Commercial

MARKET ON REPRESENTATIVE SERIAL ISSUES
California

stood

case

previous wlek
and

Index

?as not keul generaI yield average has'Pre"
new ifsue market
mailed for a month or m°re- There
too during the bave bee? no unusual individual

Fen-

others.

2,250,000

Noon

Montgomery, Crawford Central

week

past

ece 1 new lssues nave Deen weil
&'com- taken' while issues bought at the to upward price revision although

Pierrp

Drexel

as

municipal

1961-1983

issues
as is

revenue

the April 14 level. On April 21/

Easy

marlra

rp*

issues at

interesting tax-exempt

award

quoted

4,380,000

,

J;

National

City Bank of New York,
the Bankers Trust, The First Na-

Dollar

this

_

the^

California

niacins

one

i„7f+v/ln

Dayton, Ohio

have been quiet v
Mav 6 (Friday)
recently
usually the/case Arkansas State Teachers College, *
«nnd
mmc
l during a period of new issue ac-t Arkansas.!.—
1,090,000
If h^th t+tivity. - The Smith, Barney and
May 9 (Monday)
,
c^iu^'nh doe? indl" Company Turnpike Index has rea s
rS
mained
about-unchanged
from Florida Development Corpm., Fla.
4,850,000

sold

serial

Cl?rrent

th

f *tl lf
S"* f:t J n?
-

This lis

that

like its

hnth

a

of yester-

as

J"™18 }"st!rk®^'"w in. ta.x"exe+mPi bo?ds have bee;n
hi thl thw™^ ^luctant
buy \nv°l.u,me> al"
^
yields are still fairly satisTlI
^factory to most types of investors.

May 25 (Wednesday)

Bunkie, Louisiana

1,558,000
June 1

(Wednesday)

Harlingen Consolidated Independ¬
ent School
District, Texas

2,285,000
June 7 (Tuesday)

Memphis, Tennessee
Memphis Bd. of Education, Tenn.__

15,000,000
2,700,000

11:00 a.m.

Volume

191

Number

5946

Commercial and Financial Chronicle

The

.

.

.

(1831)

New Issue

April 28, 1960

$75,000,000

AMOUNTS, MATURITIES*

Serial Bonds

AND YIELD**
(Accrued interest to be added)

-

$36,600,000 3.90% Bonds, due: $3,280,000 1961-65, incl.; $960,000 1966-85, inch
and $200,000 1986-90, incl.
.

$6,330,000

1961

2.65%

6,330,000

1962

2.90

6,330,000

1963

3.15

6,030,000

1964

3.30

6,030,000

1965

3.40

^

3,710,000

1966

3.50

v

3,710,000

1967

3.55

3,710,000

1968

3.60

1

r

$37,500,000 3.80%Bonds, due:$2,750,0001961-70, incl. and$2,000,0001971-75, incl..

;

:

H

$900,000 31/2% Bonds, due $300,000 1961-63, incl.

.

Dated May 1, 1960

^

f

Due May 1,

as

shown

Principal and semi-annual interest (November 1 and May 1) payable in New York City at

3,710,000

1969

3.65:

3,710,000

1970

3.70

the office of the

2,960,000

1971

3.70

.fully registered bonds in denomination of $1,000 or multiples thereof, but not interchangeable.

2,960,000

1972

3.75

2,960,000

1973

3.75

2,960,000

1974

3.75

2,960,000

1975

3.80

Legal Investment for Savings Banks and Life Insurance Companies in the State

960,000

1976

3.80

of New York and for Executors, Administrators, Guardians and

960,000

1977

3.80

960,000

1978

3.85

960,000

1979

3.85

960,000

1980

3.85

960,000

1981

3.90

960,000

1982

3.90

960,000

1983

3.90

960,000

1984

3.90

960,000

1985

-3.90

200,000

1986

3.90

200,000

1987

3.90

200,000

1988

3.90

1989

3.90

•f!

H

v

City Comptroller. Coupon bonds in denomination of $1,000, convertible into'

others

holding Trust Funds for Investment under
the Laws of the State of New York

These Bonds,

to

be issued for School Construction and Various Municipal

legally binding

Purposes, in the opinion of counsel will constitute valid and.

'

,

200,000

,

**\Vhere

yields

the

the

are

upon

rates

coupon
same,

within which will be

and interest

subject

request.

the levy of ad valorem taxes to
as to rate or

the Bonds

are

Id

Chemical Bank New York Trust Company

' The First National City

Bankers Trust Company

Bank of New York

Morgan Guaranty Trust Company

Manufacturers Trust Company

•

r

.

.

R. W. Pressorich & Co.
•

.

*

Incorporated

*

Salomon Brosl & Hutzler

;

•

of Chicago

1

:

■

*'

Continental Illinois National Bank

- •

and Trust Company

.

Harris Trust and Savings

Incorporated

V'

F. S, Moseley &

Co.

B. J. Van

V

■

.

■

Federation Bank and Trust Company

.

of Western New York
Shields & Company

Wm. E. Pollock & Co., Inc.
Baxter &

Bache & Co.

Weeden&Co.

Dean Witter & Co.

Company

Incorporated

Kean, Taylor & Co.

E. F. Hutton & Company

.

f

'.' Newark

Incorporated

Incorporated

Geo. B. Gibbons &

Company

Hayden, Stone & Co.

!

C. F. Childs and Company

Wood, Struthers & Co.

& Co.

Incorporated

Fitzpatrick, Sullivan & Co.

?

W. E. Hutton & Co.

J. A.

Rand & Co.

Hogle & Co.

-

Incorporated

Fabricand & Co.

J. Barth & Co.

Trust Company of Georgia
•

'

•

Stern, Lauer & Co.

Wood, Gundy & Co;, Inc.
McDonnell & Co.
Incorporated

r




Tilney & Companyi

Baker, Weeks & Co.

Newburger, Loeb & Co.
•

"

s,

.

Wallace, Geruldsen & Co. *

*

'

Courts & Co.

Incorporated

;

Incorporated

'

G. H. Walker & Co.

Cruttenden, Podesta & Co.

*
,

' '

Winslow, Cohu & Stetson
Incorporated

*

:

Byrd Brothers

Chas. Incorporated
E. Weigold & Co.
Scudder & German

R. D. White & Company

Henry G. Wells & Co.
Incorporated

Shelby Cullom Davis & Co.

Schwabacher & Co. / Singer, Deane & Scribner> John Small & Co., Inc. *
"

>

D. A. Pincus & Co.

Hannahs, Ballin & Lee

Tuller & Zucker

Eldredge
& Co.
Incorporated

Bacon, Whipple & Co. Boland, Saffin, Gordon & Sautter

Tucker, Anthony & R. L. Day

•

Stroud & Company

„

of New York

r

•

Green, Ellis & Anderson

Goodbody & Co..

Sterling National Bank & Trust Company'

*

®reSon

Shearson, Hammill & Co.

L. F. Rothschild & Co.

Dick & Merle-Smith .R. S. Dickson & Company

Laidlaw & Co. Spencer Trask & Co. James A. Andrews & Co.
„

.

Incorporated

'

Robert Winthrop

The First National Bank

r

Roosevelt & Cross

Lee Higginson Corporation

Ira Haupt & Co.

Incorporated

F. S. Smithers & Co.

;

Bacon, Stevenson & Co.

Estabrook & Co.

Francis I. duPont & Co;

Dominick & Dominick

Coffin & Burr

Clark, Dodge & Co.

Braun, Bosworth & Co.

First of Michigan Corporation

•

Reynolds & Co.

National State Bank.

in Dallas

Swiss American Corporation

'*

,

Hirsch & Co.

Gregory & Sons

Mercantile Trust Company

The Marine Trust Company

••

Hallgarten & Co.

Wertheim & Co.

Ladenburg, Thalmann & Co.

Hemphill, Noyes & Co.

'

•

W. H.
Morton & Co.
Incorporated

,

Paine, Webber, Jackson & Curtis

First National Bank

•

*Drexel & Co.

White, Weld & Co..,

Carl M^ Loeb, Rhoades & Co.

■*

Incorporated

Ingen & Co, Inc.

Kidder, Peabody & Co.

The Northern Trust Company

••

v.

Hornblower & Weeks

Bank

Blair & Co..

A. G. Becker & Col
,

i'_

■

.

The Philadelphia National

\

of Chicago

Equitable Securities Corporation

Phelps, Fenn & Co.

Bank

Eastman Dillon, Union Securities & Co.

C, J. Devine & Co.

Incorporated

r

.Bear, Stearns & Co.
■

.

Merrill Lynch, Pierce, Fenner & Smith

The First National Bank. ■:

~

'

.

.

Barr Brothers & Co,

Harriman Ripley & Co.

Lazard Freres & Co.

The First Boston Corporation

Blyth & Co., Inc.

•

,

of New York

#

_

Smith, Barney & Co.

and subject 'to.

us,

Logan, Attorneys, New York, N. Y,

,

'

^

■prior sale and approval of legality by Messrs. Wood, King, Dawson '

The Chase Manhattan Bank

>

Lehman Brothers

the Bonds

pay

amount.

issued'and received by

The-above Bonds art offered when, as and if

the

and

offered at par.

ft

to

thereori, without limitation

3.90

1990

200,000

*Descriptive Circular

general obligations of the. City of New.York,- all the taxable real property^

G. C. Haas & Co.

Chester Harris & Co.

Starkweather & Co.
1

Dreyfus & Co. \ Granbery, Marache & Co.

Talmage & Co.
.

'

Van Alstyne, Noel & Co.

7

8

The Commercial and Financial Chronicle

(1832)

Branson

■DEALER-BROKER

Cooley
Street,

Instruments

&

•

Hartford

available

INVESTMENT LITERATURE

4,

data

are

Review

—

Company,

—

100 Pearl
Conn. Also
Universal

on

Match, General Cable, and

Burroughs Corp.—Memorandum—

AND RECOMMENDATIONS
IT

IS

UNDERSTOOD

TO

THAT

THE

INTERESTED

SEND

FIRMS

PARTIES

MENTIONED

Lynch, Pierce, Fenner &
Smith, Inc., 70 Pine Street, New
York 5, N. Y. Also available is a

BE PLEASED

WILL

FOLLOWING

THE

Merrill

LITERATURE:

memorandum

Stocks—Quarterly compari¬ York 5, N. Y. Also available are
son
of leading banks and trust bulletins on Opelika Manufactur¬
companies of the United States — ing Corp., Crouse Hinds Company
New York Hanseatic Corporation, and Tax Exempt Obligations.
120 Broadway, New York 5, N. Y. Tobacco
Industry—Detailed study

Bank

Burnham

View—Monthly

Invest¬

ment Letter—Burnham and Com¬

15 Broad Street, New York
5, N. Y. Also available In current
pany,

Foreign Letter.
Chemical

New York

outlook

2

—

Broadway,

4, N. Y.
Imports

Japanese

Bulletin

—

Co.,

&

in

Review

—

April
—

curities

New

of

and

issue of "In¬
Yamaichi Se¬

vestor's Digest"
Co.

York, Inc.,
New York 6, N. Y.
are analyses of
Duty Electric Equip¬

Ill Broadway,

In the
the

same

Heavy

issue

ment

Industry

Sales.

Also

and

Automobile

available

are
reports
Shipbuilding and
Co., Ltd., Sumitomo

Mitsubishi

on

Engineering
Chemical
Steel

Industry Co., Kawasaki
and Tokyo Electric

Corp.,

Power

Co.

Ltd.

Survey with particular reference
to Mitsubishi Warehouse Co., Mit¬
sui Warehouse Co. and Sumitomo

Co.,

Co.—Daiwa Securities

Ltd.,

York

149
6, N. Y.

New

York

Broadway,

City

comparing

New

Banks—Bulletin

earnings

for

the

first

quarter of

Corporation.

tions

Herbert

—

■.

.

*

.

American

City

Bank

Stocks—

Comparative figures at March 31,
1960—The First Boston Corpora¬
tion, 15 Broad Street, New York 5,
Y.

view

Drilling

Calvin

—

Industry

Bullock,

Wall Street, New York 5,

Over-the-Counter Index

showing
son

up-to-date

an

—

Re¬

Ltd.,
N. Y.

Averages
counter

the

in

used

and

the

the

industrial

Folder

—

compari¬

Dow-Jones

35

over-the-

stocks

used

in

National

Quotation
Bureau
both as to. yield and
performance over a 20period — National Quotation

market

Bureau,

Inc., 46
4, N. Y.

Front

Street,

New York

Portable

Analysis

Power

Also available

Industry—

&

Sherrerd,
Street, Philadelphia 2,

Pa.

Industry

Hentz &

—

Bank

-

Canada

on

New

Trust Co., General Public

York

Utilities,

National Biscuit, Norfolk & West¬

Oil,

Ohio

ern,

Bank,

Hanover

Southwestern Public Service, and
Southern

American

Viscose

—

Bulletin

—

Corporation

—

H.

Co., 72 Wall Street, New

, J

•

Current

Alamo

dian

Simplicity
Manufacturing
Com¬
pany—Review—Loewi & Co., Inc.
225 East Mason Street, Milwaukee

Hanly,

Eisele

circular

same

Co.,
N.

data

320

pany,

North

Louis 2,

Mo.
Telephone

—

Amott, Baker &
Co., Incorporated, 150 Broadway,
New York 38, N. Y.
—

Anglo Canadian Telephone

Com¬

pany—Analysis—New York Han¬
seatic Corporation, 120 Broadway,
New York ,5, N. Y.

view—Orvis

Co.—Re¬

in the

same

circular

are

re¬

views of Clevite Corporation, Col¬

gate Palmolive Co., Ferro Corpor¬

ation, General Tire & Rubber Co.,
International

Telephone

&

Tele¬

graph Corp., Mack Trucks, Owens

—

Incorpo¬

rated, 90 Broad Street, New York
N. Y. -

4,

Big

"C"

Stores—Memorandum—

California

Company,

Inc.,
Montgomery Street, San Fram
cisco 4, Calif.
300

For

financial institutions only—

randum—Carothers

—Ross, - Knowles

cantile

Adelaide

Street

Street,

Ltd.—Survey
Co., Ltd., 25
(West), Toronto,
&

Coffee

Company—Report—
Company,
207
Michigan Street, Milwaukee

on

Bank

Trust—Memo¬

&

Co.,

Mer¬

Dallas

Building,

1,

&

Engineering—

Engineering—Memoran¬

Inc., Daven¬
Building, Davenport,
&

Bank

port

report

a

Co.,

Iowa.

Jarrett—Bulletin—Bache

&

Co., 36 Wall Street, New York
5, N. Y.

Mountain

Fuel

—Annual

report—Mountain

Supply

Company

Fuel

Supply Company, Secretary, P. O.

Box 989, Salt Lake City 10, Utah.
Knowles—Report- National Cleveland Corporation—
Simmons, Rubin & Co., Inc., 56 Analysis — Vilas & Hickey, 26
Beaver St., New York 4,
N. Y. Broadway, New York 4, N. Y.

Also

&

available

is

report

a

Big

on

Northfield

Supermarkets.

Apple

Diamond

Alkali

Corp.

Company

view—Courts

Analysis
115

—

&

Corporation

Carreau

&

Fair

—

S.

Bank

—

El Paso Natural

&

Co.,

sis—A.
Wall

Electric

&

Kidder

M.

Street,

Also in the

Inc.,

Wa¬
Charlotte

Building,

New

Wright Line Inc.
Phillips

Darlington & Co., 40 Wall Street,
New York 5, N. Y.

Thomson
way,

First

Pioneer

Memorandum—Piper,

Co.

Jaffray

—

Ford

Foster Grant

on

York

V-„:>•:

&

on

Parvin, U. S. A. A. Build¬
ing, San Antonio, Tex. Also avail¬
is

memorandum

a

Portland

General

Cement

Dynamics

—

on

Long-

Co.

Analysis

Highway—Review—

Illinois

Company, Incorpor¬
La Salle Street,
—

memorandum

a

Brothers

Richards

Apparel.

Jones

Haloid Xerox Inc.

&

Laughlin

Steel

Review —Fahnestock

International Recreation Corp.

Broadway,
Also

in

New. York

the

same

Corp.—

&-Co.,
6, N.

circulars

review of San Diego Gas &
tric Co.

Baird Atomic

65
Y.

is :a

Elec¬

memorandum

a

Plastics

Thompson Ramo Wooldridge—Re¬
view—Van

Alstyne, Noel & Co.,
Street, New York 5, N. Y.

40 Wall

Also in the
view of

Artists

Bought.

on

Co., 25 Broad
York 4, N. Y. Also
available are reports on Beneficial
Finance
Co.,
British
Industries
Corp.,
American
Broadcasting
Street,

New

Paramount, George A. Fuller Co.,
and

bulletin

a

ment

Rolling

System,

Salem

New
.

O.

'

Lee, W. E. Hutton & Co., New
York, President of the Investment
Bankers Association of America,
and Murray Hanson, managing di¬

Inc.—Annual

Re¬

M.

Scott

W

&

.

Sons

■

.

■

.

4.

-

k

Co.—Memo¬

randum—Ohio

Company, 51 North
High Street, Columbus 15, Ohio.
Seaboard Airline

sis— L.

F.

general counsel of the

Association
that

trol and

ments,

in

has

the

also

fall

an¬

ten-

a

to

Finance of Texas Instru¬

will address a joint
meeting of the Phila¬
delphia Securities Association and

Inc.,

the

Financial

delphia
.

on

Kuglers

Analysts of Phila¬
Thursday, May 5, at

Restaurant.

Henry McK. Ingersoll of Smith,
Barney & Co.', is in charge of
arrangements for the Securities

Railroad—Analy¬ Association. *.

Rothschild

Hear

luncheon

.

...

.**•''

and

A.;

B.

Phila. Sees. Men

Inc.'-^ Report
Co., Inc., 20 Broad Street,
York 5, N. Y.
'

20th.

May

be James J.

will

PHILADELPHIA, Pa. — C. J.
Thomson, Vice-President of Con¬

Brosius,

^

Friday,

of honor

'•

Blair &
"

outing at the
Club in Ligonier,

course will be given cover¬
ing the problems of salesmanship
as it applies
to the industry.

Y.

Ryder

Rock

Pennsylvania,
Guests

will

annual

their

week

"VV '

Association

Bankers

hold

The

Inc.—Analysis
Tegeler
' Co., \ 723
Building, Houston 2,

-

Outing

PITTSBURGH, Pa.—The Western
Pennsylvania Group of the Invest¬

.
,

;

,

&

Co., 120
Broadway, New York 5, N. Y.

Kahr Bearings

Econ-O-V eyor *
•

Sold

-

Security Dealers Association

Trinity Place, New York 6, N. Y.




Situa¬

Western Pa. IBA

Executive Sales Director
<

Fourteen

sales

years

experience

Teletype NY 1-376; 377; 378

New

of

supervising national

rejuvenating

force—advertising and sales

salary
Box

HAnover 2-2400

Growth

on

tions.

Sunair

request

TROSTER, SINGER & CO.
74

&

Primary Markets In

—ambitious—capable

Member New York

re¬

a

Corp.—Bulletin—

Stone

Hayden,

ExecutoneInc.
Prospectus

bulletin is

same

Stewart Warner Corp.

United

Gulton Industries

*

Whitehouse

on

Corp.

nounced

port—Ryder System, Inc., Corpo¬
rate Relations Department, P. O.
Box 33-816 Miami, Fla.

'

-

Corp.—
Broker¬

age Co., Tower Petroleum Build¬
ing, Dallas 1, Tex. Also available

is

Purolator Products

N.

Bulletin

Instalment Finance.

Memorandum—Southern

i.

Haupt &
Co., Ill Broadway, New York 6,

(

on

Finance

Consumer

Texas

rector

&

Ruberoid—Review—Ira

Osier, Hammond & <Nanton,.
Ltd., Nanton Building, 'Winnipeg,
Man., Canada. Also available is a
bulletin

Co.—Memorandum—Kid¬

der, Peabody & Co., 17 Wall St.,
New York 5, N. Y.

Co., 621. South
Spring. Street, Los Angeles 14,
caiif.
; " - ;
;

Tex.

ated, 231 South
Chicago 4, 111.

Utilities

26,

Co.,
Mich.

..

Dempsey

—

Toll

International

Detroit

&

Houston Club

.

Penington, Colket & Company, 70
Pine Street, New York 5, N. Y.
Illinois

Memoran¬

—
Analysis — W. E.
Co., 14 Wall Street, New
5, N. Y. v-\■ ./:
J;

—Hill

Co.—Memorandum—Austin,

horn

—

Plough Inc.

Hart &

able

120

Tappan

—

Tele-, Purolator Products
Inc.—Analysis

7.;.

..

Co.

is

Winkelman

available- is

memorandum

Re¬

—

&

Co.,
Broadway, New York 5, N. Y.

To Hold
Report

—

Lerchen

Building,
available

Hutton &

Telephone

data

are

&

Finance

Shearson, Hammill & Co., 14 Wall
Street, New York 5, N.. Y..Also
a

Co., Inc., 1
5, N. Y.

McKinnon, 2 Broad¬
New York 4,.N. Y.

Also

Company—Report-^-

&

York

Petroleum

dum—Watling,

&

Hopwood, 115 South Seventh St.,
Minneapolis 2, Minn.

American

Edel-

Company

circular

same

2, N. C.

Financial

Steel Co.

views-Montgomery; Scott

North American Car Corp. and

on

Ferro Corporation—Bulletin—Hill

Charter

Robert

Co., Inc., 15 William Street,
5, N. Y.

York

Gas

Y.

Company, K. C. Christen-;
sen,
Vice-President, 245 Market U. S. Industries—Memorandum—
Street, San Francisco 6, Calif.
Filor, Bullard & Smyth, 26 Broad¬
Pennsalt Chemical Corp.—Analy¬ way, New York 4, N. Y.

El Paso, Texas.

Dickson

—

Instrument

Electric

Lanes, Inc.—Memorandum—

chovia

Analysis

—

Pacific

Company,

Natural Gas Company

Precision

—Annual report—Pacific Gas and

—

Broadway, New York 6, N. Y.

Annual report
Gas Company,

R.

—

N.

Corporation—Analy¬

Standard Pressed

Machine

dum—Quail

of America.

Cooper

Bank

Minerals

Milwaukee

2, Wis. Also available is

on

Memorandum—Winslow, Cohu &
Steson, Incorporated, 26 Broad¬
way, New York 4, N. Y.

—

East

5,

memorandum

a

Petroleum

McNeil

Chesebrough
Pond
Analysis —
Hallgarten & Co., 44 Wall Street,
New York 5, N. Y.¬
Cook

is

Hotels.

Tex.

Ont., Canada.

The

York

New

Co., 1 Wall
N. Y. Also

—

Trading^ Favorites^—

120

Marine

Frito

Corp.

Co.,4

Canadian Breweries

cal Co.

Darius

&

Hilton

graph Co.

—

Josephthal

—

Broadway, New York 5, N. Y.

available

the

Construction

dum

Simon, Strauss & Himme, Savoy
Hilton Hotel, New York 22, N. Y.

Illinois Glass and Stauffer Chemi¬

BarChris

King, Libaire, Stout &
Broadway, New York 4,

Singer Manufacturing—Memoran¬

Cadre Industries—Memorandum—

&

Co., 15
Street, New York 5, N. Y.

Broad

Also

Brothers

Co.

—

Sperry Rand

El Paso

Canadian

2, Wis. Also in the same circular
is a review of Central Louisiana

sis—Bregman, Cummings & Co.,
74
Trinity Place, New York 6,

Electrographic

St.

San

5, Tex.

Francis I. du Pont &

Corporation, Philadelphia 3, Pa.
Richter Com¬
Fourth Street,

Review

—

Incorporated,
Building,

Manhattan Shirt—Memorandum—

are

Angelica

Analysis—Scherck,

Company,
National

Antonio

Electric

Company

&

50

&

Colgate Palmolive, Ferro Cor¬
poration, and Magnavox.
on

New

—

100

Hemp¬

Street,

Y.

Co., 11 Marietta
Street, Atlanta 3, Ga.

Company

&

Franklin

Magnavox

Also in the

Companies.

Review—Edwards

C I

Auchincloss, Parker & Redpath, 2
Broadway, New York 4, N. Y.

Gas

Company—

stein

Uniform

Natural

Long Island Lighting

stead, N. Y.

Corp.—Review—

Shop Rite Foods, Inc.—Analysis—
Russ

Freehling, Meyerhoff & Co.,
120 So. La Salle St., Chicago 3, 111.
Financial

—

Co., Ltd., 67 Richmond Street,
West, Toronto 1, Ont., Canada. Also
available is an analysis of Cana¬

dum

T

Limited

Mines

Gold

Broad¬

Analysis—Thomson Kernaghan &

Re¬

Annual report—American Viscose

Farrington Mfg.
*

Seligman & Latz, Inc.—Review—

Globus, Inc., 660 Madison Avenue,
New York 21, N. Y.
.

North

The

1

Corp.

Thursday, April 28, 1960

—Ingalls & Snyder, 100
way, New York 5, N. Y.

H. M. Byllesby & Co.—Memoran¬

Crompton

Co.

ysis—Cohen, Simonson & Co., 25
Broad Street, New York 4, N. Y.

First

Steel

Data

data

are

Chemical

Dry,

Memorandum

Tools

Butcher

—

1500 Walnut

—

Arkansas Louisiana Gas

Averages,
year

*

1

between the listed industrial

stocks

—

Paine,
Webber,
Jackson
&
Curtis, 25
Street, New York 4, N. Y.

Memorandum

Offshore

Op¬
Crown

Broad

5, N. Y.

N.

Call

&

Filer

*

..

Chicle

Anglo

York

Put

Publishers, Dept. A-7, 419 Park
Avenue, South, New York 16,
N. Y.—-$3.00
(ten day free ex¬
amination).

1960—Laird, Bissell &
Meeds, 120 Broadway, New York
New

&

American Hospital Supply—Anal¬

Japanese Warehousing Industry—

Warehouse

Hertz

Understanding

Stocks

Goodbody

Bissell

Laird,

Meeds,
120
Broadway, New York 5, N. Y. Also
available
is
an
analysis of the
—

Chrysler

on

.

Leeds & Northrup—Memorandum

Leitch

Decca

Records.

.

.

open—resume

421, Commercial
York

on

&

7, New York.

sales

formulating

promotion

request—will
Financial

or

relocate

force

Realty Equities

new

experienceif

*

Carolina Pacific Plywood
*Prospectus

on

Request

necessary.

Chronicle, 25 Park Place,

PLYMOUTH SECURITIES
•

92

CORPORATION
LIBERTY

DtQby 9-2910

STREET
•

•

N. Y. 6.

♦

N.Y.

Teletype N.Y. 1-4530

Volume

Number 5946

191

.

.

The Commercial and Financial Chronicle

.

other

Improving the Evaluation

Author

-

compared to the traditional ways of capitaliz¬

are

ing past dividends which implicitly projects dividends at their present
levels. The shortcomings

with

industry

modest

dend

or

in, for example, utility cost comparison

earnings yields. The thing that puzzles the writer is the

dends

In

are

1958, the yield on
became
greater than the

September

bonds

dividend

yield
The yield on
rising sharply
for

stock.
has been

common

on

bonds

not

of

s

reported.
Methods of Computing

familiar

The

months and
the

discounting

dividend
on

measured

the

D

trial

w-

Not

since

early in

1936

had

bond
been

the

yield

Soldofsky

M.

Robert

greater

than the dividend

yield.1 After the

great breakthrough of September

1958, the yield on high grade in¬
bonds continued to rise

dustrial

October 1959.
yield on
the D-J Industrials stood at 3.10%.
to

4.70%

early

by

At that date the dividend

The

bondholders

to

return

1.60

percentage

mon

stock!

the

after

the

At

was

greater

points
than the dividend yield
writing

on

com¬

this

of

date

(March 24, 1960), even
sharp drop in the stock

the bond yield is still
slightly
above
1.00
percentage
points greater than the dividend
yield on the D-J Industrials.

market,

will

I

remarks

these

In

not

whether the stock market
is high or low, or whether it is
likely to go higher or lower with¬
in some specified period of time.
I ,will not attempt to predict bond
argue

dividend yields, or stock
I will contend that the
dividend yield correctly computed
is higher than the bond yield.

yields,

averages.

First, the methods of computing
yields—yield to maturity—
and dividend yields will be re¬
viewed. Second, some of the limi¬
tations of the dividend yield com¬

bond

will

putation
Third,

an

pointed

be

out.

of

method

alternative

computing dividend yields will be
Fourth,

described.

of

uses

of

some

will be suggested.

the

method

alternative

this

Finally,

an ex¬

periment under way at the Stat$
University of Iowa to prepare div¬

yield tables based upon our

idend
1 The

exact

depends

upon

interest

United

the

States

have

date

of

the

the series

"cross-over"

used to

maturity dates. Public issues
of corporate bonds typically have
20- to 30-year maturities.
If a bond issue had no maturity
its yield would be the rate of dis¬
count which equated the present
the income

of

value

stream with

treated alike.

could be

stock

of

rate

from

return

a

term

obligation

stock

is usually computed by

or

10, 1960, p. 5.

a

Percentage
3%

Years—

50

.

.

-

.

.

100
$ Computed

well-

method

of

and

code

$20.00 for 1958. Over this 20-year
period the rate of growth in divi¬
dends
paid
has
been
approxi¬
mately 6.25%

eration

amount

has

not

been

on

the

from

rose

D-J

30

Indus¬

$6.11 for 1939 to

compounded

annu¬

The dividends were $20.74
for 1959, and they have been as
high as $22,99 (1956). 1 *
Dividend
common

the
been

the

the

30

included

in

payments

stocks

now

Dow-Jones

on

Industrials

have

remarkably steady. Three of
common

stocks

have

been

dividends continuously
since before 1900;
18 of the 30
have paid dividends continuously
since 1926; and all but one have

project past

.

dividend

more.

or

Industrial

bonds

typically

are

issued for 20-30 years. The prices
that are paid for industrial stocks
the

and

this

method.

LIFO

General

1955; Westinghouse Electric in 1956; and Chrys¬
ler in

1957.

each

of

cluded
In

The

these

in

the

common

D-J

list

Dividend

of

;
the

1954

internal

LIFO and

"accelerated"

to

an

ability of the

corpo¬

dividends for
equally long period.

at

pay

Another limitation

or

are

highly correlated with net in¬
In

come.

net

some

income

instances reported

be reduced as
20% by using LIFO and
"accelerated" depreciation as com¬
may

the long run
record of dividends and earnings
American

of

corporations

is

as

depreciation. The lower reporting
of

consider¬

ation in dealing with

is

income

net

duced

has

probably

dividend payments

quite

probable

that

Continued

the

on

nor a

solicitation of offers to buy

any

of these securities.

made only by the Prospectus.

April 27, 1960

Avis, inc.
$5,000,000
6% Subordinated Convertible Debentures Due 1970
April 1,1960

Due April 1,1970

proc¬

Price 100%

income from
were

discounted

at

5%

per

Plus accrued interest

year

from April 1, 1960

forever, the present value of the
income stream would be $80. This
amount

either

calculated

be

may

well

the

known

by

rule

of

200,000 Shares

thumb method of capitalizing in¬

by
discounting each
year's income separately and sum¬
ming the present values. At a dis¬
come,

or

count

rate

of

5%

about

91%

Common Stock

of

(Par Value $5

per

Share)

the ultimate value of the perpetu¬

ity would be recovered in 50 years
and about 99% in 100 years. There
is little

practical

than

more

100

Price $11 per

re¬

in

years

The Debentures and the Shares

the future. The higher the rate of

the

return,

sooner

limit of

concern

I shows

some

this

Share

in being

income to be

with

concerned
ceived

purpose

practical

are

of Common Stock

being separately offered

is reached. Table

representative com¬
putations. The capitalizing process

implies both
stream

be

and

received

either

of

a

perpetual income

Copies of the Prospectus
undersigned and others as

constant amount to

a

may

may

be obtained in any State only from such of the
lawfully offer any of these securities in such State.

unit of time. If

per

these

conditions

is

not

of

thumb

for

capitalizing

income

the

earning

to

process

rate

of

W. E. Hutton & Co.

return

securities

or

A. C.

9%

Allyn and Company

Hemphill, Noyes & Co.

INCORPORATED

a

Lee

Perpetuity^:

12%

15%
Discount

Higginson Corporation

G. H.

Walker & Co.

i

20%
Discount

Discount

Discount

Discount

Discount

13.8%

25.3%

35.0%

43.3%

50.3% *

59.8%

25.6

44.2

61.3

67.3

75.3

83.8

35.8

58.3

72.6

81.7

87.7

93.5

52.2

76.7

88.4

94.1

96.7

99.0

77.2

94.6

98.7

99.6

99.9

94.8

99.7

—

—

■—-

Francis I. duPont & Co.

Bache & Co.

E. F. Hutton &

Goodbody & Co.
"

of present worth of $1 per year for each
the reciprocal of the discount rate.




offer to sell

It implies that if the
the preferred stock

imply?

ess

de¬

preciation during a period of ris¬
ing prices is to report net income
as less than they would be if the
first-in, first-out (FIFO) inven¬
tory method and straight line de¬
preciation were used for account¬
ing for income. Dividend payments
of major industrial corporations

NEW ISSUES

Dated

capitalizing

revenue

provided for "accelerated"
depreciation. The effect of using

both

Yield

Computation
What does the

in¬

indus¬

pared with FIFO and straight line

least

$80

Limitations

is

of

dence in the

rations

The offering is

per share, it is selling to yield
5%; income is being capitalized
at 5%.

stock of

companies

much

di¬
viding the periodic income by the
market price. If a preferred stock
paying $4 per year is selling for

of the Value of
6%

by dividing 4be value

given year by

an

Electric

in

yields that are accepted
indicate a high degree of confi¬

paying

This is neither

before

accounting for inven¬
the cost of goods sold.
Most large industrials have adopt¬

tory

trials.

the

just

permitted firms to
adopt the last-in first-out (LIFO)

levels into
the future, or to project dividends
rising into the future at a rate
based upon both past experience
and considered judgement. In my
opinion,
the
rising
dividends
stream should be projected into
the future. Few people would con¬
tend that dividends per share will
not be rising during the hext gen¬

but

accepted

code

revenue

future. The relevant question
is whether it is more realistic to

regularly

ratified

was

World War I. In 1939 the internal

no

preferred

a

Present Worth of $1 Per Year For a Given Number of Years

25

ment

the

TABLE I

15

of

increasing dividends in the long
run.
The dividend yield calcula¬
tion on the D-J Industrials implies

The

approximate

10

large,

generally

until after the income tax amend¬

managed
industrial
companies,
will continue to pay regular and

long

very

again
in 1958.
See A. Wilfred May,
"Observations," Commercial and Financial

5~JL—

of

not

was

practices

price. For purposes of
computing the rate of return a
perpetual bond and a preferred

met, it is improper to use the rule

As

stocks

list

accounting

repre¬

stock and bond yields.

Chronicle, March

representative

tion

its market

On the basis
of other stock and bond series there was
even
a
brief "cross-over" in 1957, and
sent

stocks—or

in

fixed

quarter

1957.

of

in

issued

the

since

contractual

the

principal to be paid at ma¬
turity with the market price is the
rate of interest. Corporate bonds

Average,

ing

process.

of the

been fall¬

third

the

payments over the remaining life
of the bond and the present value

Indus¬

Jones

has

s,

on

o

of

value

is based upon

The rate of
that equates the present

discount

com¬

s^t dc k

on

*

other

common

stocks

ally.

yield to maturity

bonds

turn

yield

Yields

calculation for computing the re¬

several

mon

be

any

30

vided

the Dow-Jones Industrials, the
on these shares are di¬

dividends

will

computation

these

ed

trials

method

'.1
a

steady, but
it has been vefy substantial. The

paid.

that

adopted

amount

stock has no cost when divi¬

bond issue, and hold common

on

paid each year has been increas¬
ing.
Certainly this increase in

Thus, he finds that some associate the cost of finance with the cost
new

yield

that have affected reported
net
income. Accounting for deprecia¬

has paid

definitely into the future; there is
way of avoiding the projection.
The
dividend
yield
calculation
projects the most recently past 12
months dividends indefinitely into

dends

puting the rate of return on investment but not to the cost of finance.
a

short-cut process.
dividend

changes

1940. This final company

dividends each year since 1946.
It may be reasonably expected

common

rather

used

by the Average itself. The
now
included in the D-J
Average have been paying divi¬

in portfolio analysis. The author concludes with a

application of sophisticated methods to capital budgeting and to com¬

of

be

dividends

request for research funds for his University's study of divi¬

and

should

9

paid dividends continuously since

that dividends will be received in¬

as

of this proposed approach are pointed out

its advantageous use

are

as

using

single
share of common stock is usually
computed by dividing the annual
dividend payment by the market
price. In the case of a representa¬
tive average of stock prices such

yields by discounting a conservatively rising dividend stream.

The results of this

a

The

attempts to obtain a more realistic, usable computation of

dividend

itself

ess

than

t

of

consequences

italizing income may be unimpor¬
tant. If the deviations are large,
the fundamental discounting proc¬

Management"

*'

'

,

the deviations

the rule of thumb process of cap¬

University of Iowa, Iowa City and Author of
"Lectures in Financial

the

small,

By Dr. Robert M. Soldofsky, Associate Professor of Finance,
State

property. If

from either of these conditions is

Of Stock and Bond Yields

.

(1833)

Tucker,

Anthony & R. L. Day

Company

re¬

also. It
further
page

27

10

Latin American Free-Trade

IV

.

Latin

,

; \V

,

The

,

uct

Montevideo

;

;

.

y

solutional direction of the
payments controversy, and Treaty's significance to U. S. business.
agreement for the

establishment of
in

free-trade

a

America

Latin

area

signed

was

in

Montevideo, Uruguay, on Feb. 18,
I960.

signatories embrace 70%
population, in¬

Its

of Latin America's

Brazil, Chile,
Peru and
\ - '
:

Argentina,

cluding
Mexico,

Paraguay,

Uruguay.

.

'

least

The almost total silence, at

until

of the financial

now,

press

between

rate

capita growth cannot

per

trialization

the

Estab¬

American

Association.

Free-Trade
sults

for
Latin

the

of

lishment

thus ..viewed

spect'

annual

2.7%

a

At this

to Latin American exports
capital financing of the

The

re¬

a

million in

$463

over

as

credits.

time, the nub of the dis¬

pute does not appear to be a sig¬
nificant problem. The Montevideo

"necessary imports, 60% of its an¬

alone
in¬
of indus¬

(let

with

stabilization

the

and

were

ments

most

and growing

that

of

April 1, of the Provi¬

on

Committee

sional

that time, even granting the
optimistic estimates with re¬

By

1.2%.

than

more

capital Treaty, completed within a month
of
the
meeting of the
central
supplied
carried out within
banks' representatives, was signed
by the industries of the region.
one country, and if
without any conditions being at¬
It may be noted in passing that
is to seek agricul¬

creased)—if the

tionary step toward a common market, the

A seven-nation

per

maintained

started

of

average per

the

recognition
be

Treaty does and does not do, the reasons for this evolu¬

Thursday, April 28, 1960

vic¬
capita growth of 2.7%,.
.the
1975 requirements
(at 1958 tory for IMF, which had already
capita prod¬
furnished the signatory Govern¬
prices) would be $6,500 million.

of

growth

annually;

no

production

annual

; Today's

goods in Latin America
totals approximately $240 million.
In order to maintain an annual

Common

There is widespread

Linfield summarizes what the

by most of our financial press. Mr.

-

2.7%

1955-1959,

agement and trade, provides details regarding Latin America's newly
established free-trade area, which he finds inexplicably under-reported
;

American

was

.

capital

a

Market
1945-1955-

Latin

analyst in the field of international operations, man¬

Consultant and

American

.

.

President,
Development Assistance Corp. (DAC), New York
•••

'

for

.

realized.

'■*'/'

The Economic Necessity

.

ciency and lower costs are to be the next central banks meeting
The same advantage ap-^ to be considered during the cur¬
plies to agricultural commoaities. rent meeting in Montevideo, which

and

Benelux

Scandinavian countries.)

Anil American Industry
By Seymour L. Linfield, Attorney at Law, and

the

and

Germany,

-

Financial Chronicle

The Commercial and

(1834)

nual

process

for

requirements

goods would have to be

is

the bounds of
each

country

tural

self-sufficiency.

tached by the signatories. All, with
Commission for
the ,exception of Brazil, have de
(ECLA)
estimates!
This would be true even if ad¬
facto convertibility. Most are com¬
that if Latin America's gross prod¬
vanced agricultural
mitted to the gradual elimination
techniques
uct is to sustain its post-war rate
were introduced, industrialization
of
bilateral
payments
arrange¬
of growth
until
1975,
the
gross
were
ments.
Within no more than a
resolutely developed in all
tions have ratified it—with pres¬
fixed investment would have to
of years, assuming that
ent indications that at least Ar¬ countries, capital investment were increase from the $8,650 million couple
LAFTA starts to function effec¬
gentina, Chile and Uruguay will .sharply increased,- and. extensive annually registered in 1954-1956
technical- training
tively, it may be reasonably ex¬
developed
at
ratify well before the end of the
'to $31,550 million in 1975. Similar¬
every production level.- Moreover,
pected that intra-zonal payments
year. ■
- • '•
?■
ly, passenger-car demand would will be on a convertible basis.
it
is
recognized that a 2.7%. annual
11
rise
from
the
150,000 imported
V'"? r':";:V' rate of
per
capita growth does
Under such circumstances, it is
yearly to 1.8 million; steel con¬

hampering trade—
fiscal, monetary or ex¬
change—within a period of not
more
than 12 years.
It becomes
effective 30 days after three na¬
charges

now

whether

■

the UN Economic

\

•

America

Latin

.

-

country with respect to this

of this

almost inexplicable. Its
which has recently arrived
in New York, merits careful con¬
sideration by American industry.

What the Treaty Does Not Say.

Treaty, is

text,

'

"Latin

The

American

Trade Association"

American

Latin
It

nucleus

the

resents

is

Free-

(LAFTA) rep¬
of

future

a

common

market.

important step towards
the economic integration of Latin
an

America, towards eliminating the
flow

the

from

political fragmentation
sub-hemisphere.

of this
..

which

limitations

economic

The

Montevideo

Treaty

is

im¬

portant for what it says, as well .as
for what it does not say. Perhaps
most
a

important, at the moment, is
of the eco¬

The Treaty does not establish a

?

schedule, and does not ir¬

common

commit each signatory
all of its goods within

revocably
include

to

the

underlie

political realities which
The follow¬

the Treaty.

ing initial observations

are

there¬

relat¬
ing to oil or its derivatives.
It
does not expressly apply to "new"
products -r- although the door is
wide open for the use of this pref¬
erential instrument, if the signa¬
tories so desire, for the develop¬
ment

such

of

establish

bility

trade.

the

uniform system of trade

payments.

It does not establish a

uniform

code

ment in the

for

foreign invest¬
*

area.

■■; A. ■

*■.

./

.',111
'

■:

'

>'

•

■.

r'Y*

'

"

a

Latin American

Treaty

zone

"

Says

is

creasing

Treaty creates
covering 10 mil¬

realization

by the in¬

throughout

Latin America that the major eco¬

nomic problem of the region is its

lion

square

massive

aims

to

with

miles.
It expressly
expand and diversify in-

powered

poverty;

countries
can be¬
industrial
com¬
that

primitive1 techniques

amount¬ come
powerful
ing to nearly $800 million, ap¬ plexes; and, that poverty can be
proximately - only
10%
of the eliminated in generations by such
region's total foreign trade—and rapid industrialization. The prob¬
to promote the complementarity lem of increasing the per capita
tra-regional

trade—now

of the economies of the area.

It

provides for

of

trade

re-<

on a non-discriminatory
basis,
by
periodic multi-lateral
negotiations.
Its obligations are

strictions,

directed
current

to

the

of

'

economic

gradual, pro¬ within the

a

reduction

gressive

r

rate

liberalization

of

to

300

•

frame of

ica which -will

million

growth
a

exists

Latin Amer¬

have in

people

1975

close

(probably

exceed 450 million by the turn of
the century), as against 193 mil¬
lion today.

(The 1975 market, in¬

consisting cidentally, will be as large nu¬
chiefly of primary commodities. merically as the present aggregate
Its objective is to eliminate all population of the United Kingdom,
intra-regional import duties and France, the Federal Republic of
trade,

now

with

the recent

understandable that the discussion

.ex¬

sumption from the 6.6 million tons
has begun to shift from considera¬
1955-1956 to 37.6 million tons;
tion
of special
credits arrange¬
'copper consumption from 70,000
ments in the region towards con¬
tons a year to 540,000 tons; petro¬
sideration
of
the
most
suitable
leum (and its derivatives) and coal
form and modus operandi of re¬
consumption from the 47 million
gional credits—and all this within
tons in 1955 to 201 million tons;an environment of increasing con¬
chemical
product
consumption
vertibility. The establishment of
'from $2.3 million in 1955 to $8.2
such a regional credit arrangement
i
million;
paper
and
paperboard
would act as a bridge from the
consumption from $370 million in
existing
bilateral
payments
1955 to $1,540 million; and cotton
schemes
(with
their
reciprocal
textile production from the cur¬
credit
arrangements)
towards
634,000 tons
to

perience of other countries which

;of

rapidly industrializing — and
seriously question whether,

are

.

many

if

even

achieved,

economic

the

it

would meet

social

and

of Latin American

demands

development.

*

Generally speaking, there is to¬
no Latin American
country

day

with

ly

a

domestic market sufficient¬

broad

take full advantage
deriving from largescale production techniques, spe¬
cialization, and the grouping to¬ rent
gether of productive activities— million tons.
although specific and isolated sec¬
to

of economies

of

tors
to

an

do

lias

'

•_

The-Political Consideration Which

Generates

compare

economy

The

so.

market in

,

Montevideo

free-trade

not

converti¬

or a

LAFTA

The

does

It

intra-regional

Free-Trade Area
i

What

It does not

to existing contracts

apply

fore in order:

a

schedule.

common

clear understanding

nomic and

not

may

biggest

Latin

passenger-car

market

in the

resenting
power
of

United States

announcement

rep¬

purchasing

$7.2

billion.

In

VI

that

Feasibility of Import Substitution

the

avoid

The

tion

process
within

free-trade

Latin

American

nations

at

protectionist pol¬
view closer intraa

icy, they all
regional economic association and

result from such different
systems; and that the fullest use

country

- is
economically feasible of appropriate credits to finance- complete integration as contribut¬
respect to consumer. indus¬ intra-zonal trade should be facili¬ ing to the development and ex¬
of the world .economy.
tries.
It cannot develop soundly tated. -Studies would be instituted pansion

markets

with

respect to capital goods

dustries

—

in¬

machinery, equipment,

.

The
Montevideo
Treaty, specifi¬
cally seeks to place itself within
the compass of GATT.
Signifi¬
cantly, it does not, and is not
intended to, preclude or replace

with respect to the best possible
systems of payments and credits to

intermediate products particularly
in the chemical and petrochemical

achieve these ends.

industries. This is because of their

with respect to the sharp disagree¬
broader
ment at the conference between
the International Monetary Fund* ments.

technical complexity and the need
for

specialization.

With respect to

Public

reference

-

,

was

avoided

such intermediate and final goods,
this specialization can only occur

and the UN Economic Commission

within

bership,

a

broad

market,

if

effi-

appears as a matter of record

only.

Latin

on

subsidiary

America—whose

incidentally,

6*4% Joint and Several Notes

Latin

exchange
rency,

arrange¬

VII

-

American

rate

pol¬

,

convertible

cur¬

for

convertibility of
earnings for purchases
area.

position

to

payments

the

out¬
It registered its op¬

restrictions

any

on

objec¬
which

currency discrim¬
special arrangements
neighboring countries.

inations
for

or

strongly

Brazil and
and

urged

supported

by

Uruguay openly and by
Argentina
privately,

highly-non-convertible

a

payments system, in order to
com-,
pel its members to purchase with¬
in

the

It criticized the IMF

area.
as

being

based upon a
multi-lateral trade at
variance with
reality, in that for¬
eign purchases from Latin* Amer¬
ica depend
fundamentally on de¬

theory

of

mand and
!-

on

The matter

ther

icy
ing

as a

and

major

trade policy.
was

shelved for fur¬

discussion—with the date of

means

of maintain¬

developing trade among

the states
concerned, so as to re¬
place the existing practice of bi¬
lateral
agreements
with
their

(including bi-lateral trade, customs

payments agreements), its
tion
to
any
arrangement

position

Van Alstyne, Noel & Co.

lateral

way
to achieve a free payment the southern countries rof, Latin
system. The former—while taking! America. The four southern coun¬
no
position on the contemplated
tries—Argentina, Brazil, Chile and
treaty, inasmuch as it represented
Uruguay — considered with favor
a
trade [
agreement—strongly ar¬ a multi-lateral instrument, corvgued ,(with the support, of Peru,"
forming to the provisions of GATT,
Paraguay and Bolivia) for a single which would utilize customs

Chile

April 1, 1975

-

The Timetable of LAFTA

mem¬

in

multi

addition
'The 12-year timetable may well
countries,, be accelerated. Originally, the es¬
includes France, The Netherlands, tablishment,* of a free-trade area
the
United
Kingdom .and the. was only intended to address itself
United States—concerning the best, to
urgent trade problems affecting
the

ECLA,




American industry,
short-sighted to view
primarily as an expres¬

with

Highway Trailer Company

April 25, 1960

for

be

present follow

which

would introduce

.

all

should

area

discriminations

the

of import substitu¬ might
individual-

Highway Trailer Industries, Inc.

Company

problems
it would

;

Latin

area's

Allen dC

free-

zone.

tory powers. Agreement was there LAFTA
reached that, with respect to payr*'

side the

Due

convert¬

the

sion of the increasing division of
ments, the objective was to move the
world into regional markets—
to
free monetary
convertibility;'
America, only three countries— that
including the European Economic
the co-existence of different
Brazil.
Argentina and -Mexico—
Community, the European Free
payments and credits systems
have
a
total
annual purchasing
Trade Area, the countries of the
would not prevent the free func¬
Communist bloc. Although nearly
power exceeding this figure.
tioning of the free-trade area;

annual

an

$3,200,000

and its

and

within

The Montevideo Treaty was pre-> LAFTA and the World
Economy
ceded in January, 1960 by a meet¬
Whatever the foreseeably-new

annual

an

trade

settlements

T1

$13.2

undersigned have placed the Notes, described below, with

institutions. This

ible

purchasing power
billion/' This could be ing of Government representatives
of the central banks of the signa¬
contrasted with
a
of

i

The

multi-lateral

Payments and Credits

country

America, Brazil,

to

r

1.6

trade

able

be

annually

and

exchange limi¬

The adhesion of

Mexico—which

tations.

has but little trade
with, and
problems different than, the

signatories

—

Treaty into the

transformed
nucleus of

a

trade
other
the
com¬

mon

market
arrangement.
Two
chapters of the Montevideo Treaty
—Chapter III
("Expansion of
Trade and Economic
Complemen¬
tarity") and Chapter VIII ("Meas¬
ures

in

Favour of Countries at

a

Relatively

Less Advanced Stags
of Economic
Development")—rep¬
resent

steps

towards

nent objective of
ket.
!
"

a

the

perma¬

common

mar-

>

There

bia,
soon

is prospect that Colom¬
Ecuador and Panama may

join the Treaty. If the

special

Volume

191

Number

5946

.

.

The Commercial and Financial Chronicle

.

(1835)

treatment

(which the Treaty exr
pressly permits) is provided, the
opposition of Venezuela can

quickly melt.

Finally, it

stressed

that

the

pressing

for

timetable

may be
considerations

acceleration

of

of

the

of Latin America.
true

This is

irrespective

Latin

a

new

general treaty

is

The

a

development of the facil¬
ities provided by the Montevideo

of

distributions

Hubbard

ascertaining

the

validity

secondaries

have

by

in

invalidity

or

definite

a

his survey

bearish

able to impart information

of

of

do

take,

the

over

111

the

and

the

short-term

are

distributions.

popular

view

Conclusion

findings

In

dealer

^

that

author is

?

to both investors and security dealers

American

Thus,

Stock

"The lesson in all this for Brit¬

curities!" After The enactmentSof

^AnToM^or^ore
£
? more

con¬

Times"

addressed

to

*

clear.
Although
strong demand for
heavy capital equipment in Latin

the

Securities

Act

the

Securities

Exchange

America

became

ish

industry

is

there will be

or

the

over

next

ten

years

it will subsequently be

so,

and

a

difficult

more

to

more

export

any

sales
s

were

thev

example of her German and
Japanese competitors and estab¬
lish, or share in establishing, man¬

,

,

tionl

factors
iaciors

constantly

were

ufacturing industries within Latin large
America.
.

The

.

of

pace

change

in

even

more

cases

economic,

for
tor

both political and
rising rapidly, and
unless more attention is paid by
British industry to Latin Ameri¬
investment

can

future, it

near

within

the- very

be too late to

may

start."

matters

the

as

well

come, as

distribution

as

tion
uon.

of

in¬

active considera¬

as

system

a

with
witn

needed

is

situasitua

market
market

iouna

secondary
secondary

over-the-counter offering

of

a

block of securities, usually
common
stock, by one or more
large

Sr nf01fhp
PhantfPQ

S 9tork

ThiQ

tvnp

from

frenupnev

in

ha^

wlP

Of

inrrpaspH

few as 37 in 1942 to well over 100
ioITq

place.

other

the

■

industry,

must give
careful consideration not only to
this

as

matter

of

timing, but also to

conditions under which it
seeks
to
participate
in
future

With the rapid increase in pop-

ularity of this method, there have
been

misconceptions

many

;

Latin

American

economic

opment.

..

These
mine

two

its

will

role

in

the

in

Latin

short

Newbury Director
Of National Sees.
elected to

the Board

has

been

of Directors

the

such, it

can

cally

into
(1)

(2)

feeling

three

t

f

Corporation it has been announced
by Henry J. Simonson, Jr., Chair¬
man and President. Mr. Newbury

1Tiarkpt

and

questions.

find

fnr

large

a

enough

narfionlnr

fhp

»

,

se-

pnmariiy

rional tii,p
risks

f

«

of

because
needed

the

and

depressing

^

,,

hqpH

if

registration
tration

'

case

addi-

is

of

rasp

feeling

it

Market

(3)

•

J.

,

Jjspsiiuin^ on til6 S1Z6 of block,
marketability and nature of the

securities being offered, the principal dealer or syndicate head
mak? several decisions on

Xded^If

Mbution

distribution, he

com-

not need to

may

°\

market

securities

were

rppprd

of

attPTnnt

the

the

York

New

dealer

not

gtock

Exchange

to

handle

or

or

the

to

nrpnnrtinn

of

thp

total

ducted

Tn

on

"best

a

in ouctea on a

assume

efforts"

oest ciiorts

estimated

been

it

of all large block busi.

hp dp^irahlp

^the

nationby

mnrp

He^irahlp

bp

g

■

Consultant

ditions

Economic

on

since

of

th

except for a
period of almost four years when
he
of

served

as

Defense

Assistant

and

a

Electric

and

cpiiin?

^ronn

arp

of

WestingCorporation
for

whom he directed

>*_.'■

-

_

'

_

r_ "

.r.

return

kel^Frifn^Ho^^

as

he

'commission

This

-

announcement

of

offer

an

is under

to

buy

no

t

b

criven

tn

thpm

author

of

"Business

Fore¬

casting" and "The American Eco¬
nomic System," Mr. Newbury is
a

member of The American Eco¬

nomic Association,

American So¬
ciety of Mechanical Engineers and
Fellow,
American
Institute
of
Electrical Engineers.
Mr. Newbury succeeds the late

Beardsley

holder

of

can

by giving a low

to" lower

and

oiiopafprl

to

parh

date.

Ruml

on

National's

insurance

or

large

Twin City Investment
Women
City
will

Normandy

as

firm

*

Commissions and

Concessions

.

.

,

.

,

Continued

on

solicitation

NEW ISSUE

S12.000.000

Melville Shoe

Corporation

Twenty Year 4%% Debentures Due 1980
Due

April 15, 1980

Payable April 15 and October 15

the

large

to

Meet

Investment Women's
a meeting at The
Hotel,
Minneapolis,

hold

Minn.,
May
18th.
Mr.
Osman
Springsted, President of Moody
Springsted, St. Paul, will be the
speaker.




Price

even

or

a

announcement

dealers

or

brokers

of

distribution

assets.

such

the

as

large

reflects

(1)

the

foundation

investments.

I

In

to

diversify its
case,

,

Incorporated

The First Boston

Goldman, Sachs & Co.

Corporation

Lehman Brothers

a

White, Weld 8C Co.

Wertheim 8i Co.

Hallgarten & Co.

Hornblower 8C Weeks

the

principle channels

Direct

sale

on

market to

the
a

Lee

Paine, Webber, Jackson 8C Curtis

Higginson Corporation

over-

on

the floor of the Stock

Exchange.

Sale

distribution

" '

through
by

a.

.;
a

Salomon Bros. 8C Hutzler

Co.

Shields 8C Company

secondary

syndicate

of

■

r

E. F. Hutton 8i

Estabrook & Co.

Francis I. duPont & Co.

Bache&Co.

Direct sale through a mem¬

ber firm

L. F._ Rothschild 8C

sizeable

institution.

(3)

Lynch, Pierce, Fenner & Smith

of¬

of

desire

any

Merrill

to him:

the-counter

(2)

may

other

In

recent

fering of 2,000,000 Ford shares, it
simply

as

of

purposes

payment of inheritance taxes and

situations

in any State in which this
of the undersigned or other
lawfully offer these securities in such State.

may be obtained
is circulated from only such

Copies of the Prospectus

cor¬

or

liquidation of a
the

for

99^/2%

(plus accrued interest from April 15, I960)

be an

The sale is often

of the

estate

may

individual

private

result

orig¬
the

~

Company

Tucker, Anthony & R. L. Day

-

„

ing institution or individual has

his

,

-

..

of the commission which the sell-

investment

an

company,

porate treasury.

open

Club

holder

institution such

seller has four

Board of Directors.

Twin

This large

thp

Commissions and Concessions
As agreements are reached with

'

circumstances to be construed as an offer to sell or as a

large block to liqui¬

a

of

aliocated t0 each ±irm-

of these securities. The offering is made only by the Prospectus.

any

Interest

of

decision

the

economic fore¬

casting activities and made origi¬
nal studies of industry cycles.
The

with

hping

selected where needed, indications

Dated April 15, I960

distribution

secondary

En¬

retired Director

Vice-President

house

Secretary

Research

for

gineering. He is

A

inates

1p<?«?

As the other members

musV De f\en 10 F1.^ °*
oasis number of shares which will be

the seller to obtain as high a net

Distribution Methods

Con¬

1952

large

and

Wore^aesirabie and less

expensive>

„

—;—

'

SECTION I

a

wfre touse wi?h man^ 'officii

alternative 3 K tErom this point
it must be remembered that
on' we wil1 deal entirely with during these negotiations, the ob- any other participating syndicate
corP°rate shares listed on the jectives of the two parties are members, one of the major deci^^E0b°iatbean^Sei?ppafisp
^hesp quite diffeJei?t' and in many cases, sions is that of the relative split
taming data and because these opposite. It is in the interests of

As

methods,

On

other hand, with a popular
>»
known ror-

basis

(the best efforts method is by far
the more common usually used,
g in ^ew York Stock Exchange
with underwriting only on the
ligted shares is marketed through larger issues). '
»
has

practice,

fhat ^,

invp«?tmf>nt

institutional

large

Ilsteu stock ot a wen known cor-

assume

-

n

smaJf. Pr°Porti°n ot tne total,

vphv

a

customers wouia oeaesirapie. un

the

originally

full risk for the success of the dis-

large

with

rnq40rnPre wonlH

the

in

where

willing

is

nrp

vork

banker

(regis

stocknoiaers

treasuries

iritis

qppi

security, a New York investment

becuri

stockhnlHprs

maJor

th*

Commission

required

corporate

if

has been associated with National
as

dXer'is

the

a large one with wide national

stable preferred stock or income

^ce^lt attempt or tne i\ew York tne aeaier is wining iu

is

impact.

the

include

ns*

•

Distribution
_

.

fnrt

necessaiy

often

.

mainr

announce¬

on

non-

^prnri-

npnp«arv

nripp

the

the

Exchange

and

atinn

Al-

mrpiv

*

,

ties

«p

i-

dealing

sections

with

or

laiJ' 11 tde securities are a veiy

ested m.
;
Arran^pmentc:
for
vSJ Arrangements tor

or

type oi mamet, or-

t_rn9

and

gap

Distribution

and,

of National Securities & Research

-c

over

paper

the

firms

be broken down logi¬

Public

ment

fill

to

above

answer

with

This

is.

member

used

are

public

actual

consultation

to

as

distribution

a

term

attempt

an

Newbury

how

sale,

of such

pact
the

D.

uiis

deter¬

America.

Frank

exactly what steps

just

thi

changes, and what the market im¬

.

factors

future

devel¬

these

(3) Indication of approximate he may be forced to contact others
prjce which the seller is inter- to obtain the needed selling ef-

comprise by far the largest per-

.

than

°f

•

wmg

came

the secondary distnbudistribution is
is
qiscriDuiiun

as

A
a

ana

d

member

(1) Approximate date on which

(2)

from

following decisions'

most

in

tion of the social conditions under

development
takes
American industry, no less

of the above

curity at the particular time.
.

who
wnu

which

such

ft

in which the terms of the

'^llJ be offered'
Selling concession or

to

as

i

the

XI Exchange

possibility of

found^and' c™me°toWbI
of securities
within its own tribution through an underwriting
to
oe..
faclbties, but
still represent a or whether the sale will be con-

quickly
quickly

an

-

Investment, high rates of growth
and rapid industrialization cannot
but bring to the forefront such

where

the

A.Tln'm'ost ™th
3 larg? X™8'
XX
°" 5" °T X t
4
represents
the comparatively
(5) Commitment as to whether

ommon
common,

dealing
aeaung

known

stagle

f
-v7

nlirpwpr

with
issues

dealing

about

are
finally
worked
out.
The following are usually
decided in this bargaining process:

the above

of

client.

same

so

business

will begin to make arrangements
£or ^.jle ac^uai sale. These are

is

him

basis

continuing

negotiations the principal dealer

transaction

Pul.Llldx*

The
ine

of institu-

,

inability to

,

,

market
maiKet

of

amounts

Xen6 Ze0'

Latin America,

is

tho
ine

in
in

•

stock

method
metnoa.

importance

increasing

d

com-

the normal

"auction"
auction

exchange
exenange

equitable

an

the

k

ensues

the block and its marketability.

be

not

Exchange

Alternative
is not often used,
either because of lack of knowl-

difficult.

more

could
i" ,r

on

the Transaction

m

ondary distribution. A process of
IlG^otistioil 9nd COIlfGTGlflCG tll0n

v;

and
T+

amounts
,

the

in

market

present time.

upon the maiket experiof the seller, he may or may
not be the first to suggest a sec-

large

thin

issues

these

probably
in

It™ X^0", which the dcaler wiu be call on others to help "move the
Xthlhlncb and X^arVetahilUv allowed'
stock." However, if he is small,

Act

r

year

ence

or'j;

and

1933

increasingly

of

sct

goods to the area.
y
Therefore, if the UK is to retain pleted through
stake in the area, it must follow

of

a

pending

(4) sale through a Stock Exchange member firm in a special
offering, off-board transaction

of
1934, markets for common stocks

Often

manufactured

represent

of failure,

a
high selling
concession, lower his risk, and, in
many
cases
(especially in institutional work) keep negotiations

of

numbers

De-

:■!r....

:

on

well

may

British industry on the subject
Feb. 4, 1960:

r

,

member firms.

"Financial

a

1

continuing
through the present
time, the secondary distribution
has become an increasingly commen
and important factor in the

industry

sider the words which the London

■

'-h

of the security

n-exchange
member) with
acquainted, and ques-

ti°n

X

tered, volatile and stable stocks, and he computes their day-by-day

assessing the significance of lb ;
conges over a ten day period.
LAFTA, and the emerging Latin
American
common
market, Beginning late in the 1930's and non-member or
•'

case

It is the objective
dealer to obtain

(either exchange member

whom he

In

'

chances of loss in

Before

large and small distributions as well as SEC regis-

cover

large

million

$500

in

market influence, the

helpful in gauging the problems posed and in meeting them.
his

■Treaty.

Thus,
assume

obtain

and

can

distributions

typical

Mr.

^

tion and

secondary

impact

analyzed

via utiliza¬

or

methods

market

the

via

of

and

Steps

of achiev¬

means

market

common

resale

of

shares

By Philip M. Hubbard, Jr.*

equally

whether

activity.

distributions

the dominant role in the business

value at the

American Governments de¬

cide that the best

ing

of

such

secondary

the

European Com¬
mon Market exist with
equal force
within the economy and politics

of

centage

Short-Term Market Impact
Of Secondary Distributions

11

•

'

'

Wood, Struthers 8C Co.

page

30

12

The Commercial and Financial Chronicle

(1836)

Sputters and Sizzles in

;

•

*

The Economic Outlook

ting out of line. Of course, there
are
some
segments .of industry
where the' cutbacks have already

there

occurred.

are

Auto sales

expectations
The

lion

in

minuses

the

and

Reserve

policy add up to a good year of orderly expansion accord-

and

economy

of sizzled and notes how

more

a

1960

in

the

seven

mil¬

was

Clearly,

the

current

prices and

used

car

stocks—does

not suggest that the year

ing

has sputtered instead

to

up

is build¬

anything like

a

seven

million year.

haps

A'short- falLto ,per^
7% from that seven

to

6

million looks likely at the present

permits, with the abating inflation now occurring, a more expansive

time.

monetary policy than we had in 1959 to minimize the risk of a downturn.

How even another aspect of the
retail trade picture which I think
is rather interesting and which I

with

more

concern

in the

last

few

weeks.
unde

Incomes

It

than

with

ordinary

is

reflected

the

the
of

curred

were

pattern

same

retail

trade.

of

1959.

As

$18.3

billion per month

level

has

in

weeks ago,

the

recent

weeks

have

been

Dr. P. W. McCracken

very
disap¬
pointing. With the economic forces
seeming to be at surprising close

balance,

there

was

exhilaration

a

with

enthusiasm

able

to

and

keep
it
orderly basis.

somewhat

pre¬

[Ed. Note: March retail

brightest spot is that the
employment picture has definitely
improved and the ratio of unem¬
ployment to the labor force has
fallen down below 5%. It is
down to where it was in the bet¬

now

a

ter

of

part

last

And

year.

in

February there was a substantial
Well, the fact of the matter is, strengthening of the employment
one
might say the
so-called picture. Employment was up al¬
"Sizzling
Sixties"
have
settled most a half a million, and the
down more on a sputtering note number of
long-term unemployed
than a sizzling note.
Take the —that hard core unemployment

statistics

just being released on
developments in busi¬
activity. Industrial output in
February was down slightly from
January, and the earlier estimate
of what was happening in Janu¬
ary came down just a little bit.

problem

of people who get into
this unemployment role and have

recent

ness

difficulty getting out of it again—
actually declining. The em¬

was

ployment picture was one of the
most
hopeful
elements
of
this
months'

business

news.

Industrial
output, in other
Now
this
essentially sidewise
words, the physical volume of movement of business activity and
things being turned out, is now business play, after the exhilara¬
only very slightly above what it tion with which we were antici¬
in mid-1959.

seasonally

March

was

below last

the

[Ed. Note: The

pating what

adjusted

this

109%

of

index

1957—1%

February and 2%

be¬

January high.]

This

time

raised

some

seems

to

is

not

an

question

as

to

what

be

like

year

going to happen
year, has of course

was

of

contained

announcement

deed,
along

had

sales

retail

the

is

in

sales

con¬

months, sales in February would
have been about 4% higher than

they actually
This

is

were.

which
the question as to whether
rather bearish consumer psy¬

raises
a

chology is going to become

one

the

in

drags

the

on

situation

current year.

I will have
about that later.

Now

third

a

rather

of

the
to

more

disturbing

have

nesses

been

more

rapid
anticipated.

a

very

accumulating
substantially

than

pace

The

had

been

inventory

ac¬

shaping up. Is it a
1957, which of course

a

offer

downturn?

to

sell

It is

cer¬

one

of the

strong elements, one
of the important plus
factors, not
only in the very early part of
1960, but also carrying at leafct
into
mid-year and possibly be¬
yond. I would be frank to say
about two

three months

or

ago

I

solicitation of

relative

movement

dential

have

We

is

industry and the
from January to Feb¬
further decline.

a

Business
Now

Spending Looks

if

this

at

economic problem.
Now

the

fact

of

the

matter

this

restocking or building
inventory on the part of

point,

as

elements

selves




in

the

there

that

still

are

up

is,
of

busi¬

but not

sentiment

to

their

be

lion, which is

about $750
annual

an

mil¬

rate

of

tinues to be evidence of

This

is

a

we

have such
of

thing

been

long

while
to

productive

facilities.

These

so-

capital expenditures v are
the
important plus ele¬
ments in the picture. This still
looks good.
of

one

Last

fall

preliminary
estimates indicated that these ex¬
penditures

very

in

would

1960

proba¬

particularly when we are in a
upswing stage, that the magni¬
tude

this

of

preceding

about
for

expansion

is

year

looks

though one of two things is
going to have to happen; either
basic demand is going to have to
strengthen in order to validate
as

these
or

we

high production schedules
going to have extensive

are

cutbacks

in

production

in

order to avoid

an

offer

schedules

inventories get¬

14%

the

over

apt

many

above

to

last

grow.

to

buy

any

of

amount

strength
this extremely important sec¬
of

the

could

of this.

that

If

the

this

w^s

evidence

going to

this

year,

for

economy
decrease

a

would

have

cause

concern.

bright spot in the
picture* curiously, it seems to me,
is
precisely
in
this
inventory
picture. While inventories have
fact

of

the

matter

generally

rapidly, the

is

that

have

under

busi¬

their

much

in¬

firmer

payments
far

In

tial

had

at

least

in

the

The

I

stantive.

this

is

because

it

does

that

are

we

this

inventory
in

the

abroad

been

then

weakness

latter

part

fact

turned

There

plus
One

over

5

>\»

now

dence
is

at

are

these

seem

that

that

little

directly

to

that

be

in

is

and

of substan¬

it

for

seems

a

of

for this gap
payments to
for that op¬

fairly

are

them is

business

these

enlarge.

countries

purchases

automobile

Also,

least

its

don't

we

products
sell

in

from

am

of

produce

the

The

us.

criticism

the

have

a

—

kind

of

chance

to

foreign market, etc.
give you a little il¬

me

lustration

of
against

some

for
ex¬
recipient of

the

share

that

let

—so

some

moving

are

industry,

ample, has been
at

desir¬

a

export market.

our

rapidly towards removing
their special restrictions
their

the

activity

going to have
on

sub¬

that

words, as their economy
purchases from us

of

the

kind

of

thing I

talking about.

I

spent part of

last

summer

in

Japan. Very frequently the ques¬
tion
was
asked, "When is the
United States going to have to
the

dollar?"

Well,

now, is our balance of
payments
really
unbalanced?
Let's look at the automobile situa¬

tion.
Japan
can
sell
all
the
Japanese cars they can persuade
people- in the United States to
buy, subject to the 9% tariff. Now
look

it

at

the

the

other

round.

way

Japanese market there is

progressive excise tax, such that
on their cars and up to
50%
on
American
cars.
In ad¬
a

cars.

to

cars

that

States

on

can

and

sale

of

and

draw

out

any

line

be

United
the

the

it

cars

with
in

Japan

as to
payments

conclusion

balance

Well,
these
gradually being
must

in

compare

our

of

look at sales

you

cars

American

whether

it

60%

a

anyway.

Japanese

are

is

imports of
Finally, there is

NowNhow
of

there

American
a flat pro¬
importing American

on

sentiment

Good

three

come

more

mentioning.
there

does

scattered

evi¬

consumer

a

payments,

or

of

not?

restrictions

are

down, and
that
in these

worn

said

countries there is

least

is

consumers
more

and

half of the de¬

worth

developing in

The

side

1957-58.

factors
of

1957

inventories

high

about

accounted for

cline from

that

the

on

Consumer Attitude

Myron A. Lomasney & Co.

which

of

ex¬

reasons

grows,
their
will tend to

suggest

early part of 1958. In, fact,

this

was

strongly

going to have in
picture the vol¬

of

source

us

and the

state.

not

reassuring

we

our

of

One of

hibition

rather

Now

think,

expansion

dition

prevailed

in

tendency

a

timism,

tariff

as

of years,

cause

balance

narrow.

same

to

concerned.

Strengthening

of

a

concern.

balance, it
"right"

variety of reasons, there is some
reason to hope that
1960 is going
to witness a significant
strength¬
ening of our export market and

lion dollars more to
get up to the

relative'

their

on

the

were

deficit

a

balance

it is 15%

relationship
activity

we

as

of
on

last couple

the

have

tories

back at that time.

this

out

Market

In

business

some¬

country

quite aware of for a
because they always

was

Export

control than say through 1956 and
1957. As a matter of

fact, inven¬

in

small

a

As far as the United Statesl is
concerned, until recently we have
been living in an era of dollar
shortages. While our balance of

devaluate

second

a

our bal¬

as

.keep one eye
of payments.

balance

suggested

the

exhibit

we

real

some

Now

of

area

at
the
present
moment
would have to be six! to eight bil¬

be obtained from the undersigned and from

Broadway, New York 6, N. Y.

I

economy.

hardly exaggerate the importance

nesses

Share

lawfully offer these securities

So
is still a

year.

there

reasons,

considerable
tor

It

in

this has been

in

long.

thing

a

people

have

a

called

to

us

payments. This is

tial

further expansion in what is
critically important segment of
industry
at
the
present
time,
namely, the prospects for busi¬
ness expenditures for the
expan¬
sion
and
improvement of their

for

fact, I think most of
only vaguely aware that

are

con¬

substan¬

going

In

us

have

the

does

evidence
are

item

new

ternal

be

very

some

as

$9 billion. Anything like that rate
of
expansion, of course, cannot
sustained

now

export markets
to strengthen.

side

these is that there

there

years,

out of balance

been

inventories

of

our

ance

strong

showing for

poor

couple

was

of

looks

another point is that after

rather

seem

But

impressions,

exuberant.

Now

that

shortly.

scattered

consumer

last

now

some

available

from

the

is

some

almost

an

Center

concluding

important plus elements in
the picture, and these must be
recognized.

hit

BOwling Green 9-8120

current

do need to remind our¬

very

it

39

discussion

our

we

a

scene, we

had

may

Good|

might regard
quite pessimistic review
of developments. But before we
are
overly impressed with the
this

canic

may

stop

we

And in a survey which the De¬
moving along at
uncomfortably rapid partment of Commerce just re¬
evidence
pace.
For example, in January, leased last week, the
suggests these increases will be
manufacturers
alone
built
up

has

nesses

(Par Value Ten Cents)

as

significant

a

this

movement
ruary

had

now

in

be

just

ago.

Michigan

materials and those results

survey

will

seemed

of

Research

able effect

COMMON STOCK

dealers

Survey

watch.

construction.

decline

Now

other

econ¬

University

|

In other

TENAX, INC.

such

the

to

Ceilings on FHA and VA
mortgages
result
in residential
construction
being
a
contracyclical
type
of
industry.
As
business activity strengthens,, in¬
terest rates push up above these
ceiling levels, enlarging discounts
begin to be a real drag on resi¬

was expecting this factor
bly be about 10% over 1959. Now
going to be a sustaining ele¬ our experience has demonstrated
ment in the
picture, in settling the that as we get closer to a period,

1 50,000 Shares

Copies of the Prospectus

adverse

than

in the process of

omy.

ventories

per

that
been

buy

couple of months

a

myself

NEW ISSUE

$4.00

usual

its

to

was

of these securities. The offering is made only by the
Prospectus.

Price:

running

has

construction

been accumulated too
or a

in the

is the fact

familiar,

displaying

One

development, in the last couple of
particularly, is that busi¬
inventories at

all

are

residential

clined

probable
The

time and with which we

some

minus

phenomenon

a

for

Thursday, April 28, 1960

.

.

picture, which has been

marched

incomes during the last six

"

'

The final minus element

recent

with the rise in

apace

sumer

be

The

this

on

somewhat

these

Bright Spot

which

contain

still

are

that

course,

retail

about

months have not been responding
to the rise in people's income. In¬

months

of

puzzled

cumulation had been expected to

year

be

that

emphasize,

arys-February level.]

was

wouldn't

that

sales remained at about the Janu¬

and:;new decade
being greeted, and the only
question was the fear that we
new

fact

matter

and

rather

am

say

of

wave

a

yet to

liminary.

really quite a
change. If you go back to the turn
of the year, I think you will all
remember

Aggre¬

„,

be exceeded, at
least on the basis of the prelim¬
inary estimates. And there was
a
very slight decline from Janu¬
ary to February, although I must
figures

is

this

is

fact, the high water mark oc¬
in July of last year, about

to

three

almost

the

been

ushered
about

in

middle

"Sizzling
supposed

very

pattern,

gate retail sales apart from sea¬
sonal changes have been stalled
on
about an $18 billion plateau,
month
after month, since about

Sixties"

have

of

having been virtually

Somewhat

with

ance

there

following
kind

ary.

niably

which

same

change in January and Febru¬

no

exuber¬

the

are

the

much

true that after

low

the

This, he says, makes proper policy actions critically important, and

about

in

cars.

of

sales—and other evidence such as
what is happening to
used car

relaxed Federal

evenly balanced are today's economic forces.

subject which has:been.as¬
signed to me is one which I think
most of us
have been thinking

FRB's

for

,

Plusses

The

was

turn

frequently cited

estimate

Advisers' member indicates where the economy

the

the

at

most

neighborhood of about

ing to Dr. McCracken's diagnosis The former Council of Economic I

this

are

disturbing aspects.
not quite up to the

By Dr. Paul W. McCracken,* Professor of Business Conditions,

v

1

some

School

Arbor, Mich.

.

tainly true as one examines care¬
fully Jhe evidence, of what is
going on at the present time, that

year.,

of Business Administration, University of Michigan, Ann

.

psychology

reassuring way.

are

becoming

a

optimistic about their

would

down,
be

a great deal of
they
ought to
simply because it

that

good

for

the

domestic

industries to be subject to
can
competition.'V "

Ameri¬

Money and Capital Markets

Well, the final element in the
picture I want to mention on the
plus side of the picture here1 to-

Volume

191

Number

5946

.

.

The Commercial and Financial Chronicle

.

day is-that the

here, I would

markets

elusions.

that is

money and capital
developing in a way

are

conducive to orderly

more

this

change

-

in

and

money

really

to

add

to

what

is

has

change

in

picture
Uncle

a

is

the

himself

increase

budget

A. year

ago.

but

marked

Federal

year

Sam

the

was

Now

budget

position

of

tures
the

how

has

receipts

over

Federal

to

wholly

expansive

because it

produces these adverse
sions

in

the

general

of

abatement

the

stocks

common

And

days

change
policy?"
You

recall

ago

rowed

reserve

Reserve

to

no

of

one

This had

1960

eased

reserve

week

net

the

to

inevitably

reserves

level

old

of

exuberant

an

it

nonetheless

may

be

a

expansion.,H

sponsored
of

Commission

by the Instalment predit
the
American
Bankers

Association, Chicago, 111., March 23, 1960.

$450

next

down

again, but

once
snowstorm.

another

was

it

week

have

been

came

This

statistics

on

position

was

time

was

it

the

is

The

House

a

seat

.'/••
mentioned

being

erals

the

Congressmen
All

sorts

of

and

servative

run

took

conservatives

as

a

liberal.

a

as

efforts

to

New

than

more

The latter

reserve

still easier, and this
pretty hard to/ex¬

weeks'

two

a

for

B. Pm'+V»

well-

a

earned

in

Jersey

defeated,
granted

was

Nixon would win

over

./■;/•.,. / /,":/,- •///•.;.

Committees serving under these

general Chairmen include:
Firms

Member

Committee:

Jo¬

seph C. Nugent of Mabon & Co.,

Joseph
Gimma
of
Weeks, John B.
Carlisle & Jacqueline,

Cnairman;
Hornblower
of

Maher

&

and Walter T. O'Hara of Thomson

However,

&

McKinnon, Vice-Chairmen.
Committee:

Commodities
J.

ward

Wade

Wade

of

Ed¬
&

Bros.

Co., Chairman; Charles B. Crofton
of Crofton Grain Co., and Harold
A. Rousselot of Francis I. du Pont
&

Co., Vice-Chairmen.

Catholic

of

is

Committee

Cardinal's

The

laymen

Kennedy family, headed by father
Joe, is quite a family.
It is an
unusually attractive, also ex¬
tremely wealthy, family and when
it starts out after anything, it is

They solicit special gifts from in¬
dividuals in their particular field

hard to deny

Dahl & Diehl

down

only

Los

at

Angeles.

been

Investors

or

to engage

Officers

all Demo¬

with

formed

14th Street,

in

a

are

at

542

New York City,

securities business.
Theodore Lehman,

Joseph

President;

offices

Treas¬

Sadow,

committees accord¬

in allied industries.

To Visit N.Y. C.
has

Corporation

into

grouped

them.

Form LSL Investors

private poll, released by the
people, has just shown that

A

was

& Co.

latter

ing to their business or profession.

'

.

of
Glore, Forgan

The

Nixon

vaca-

he

saw

Edward

Hayes

him

by

profound

'/; " / ////:

F.

Kelly

composed

East

a

R.

Cole¬
&
Co.,

good showing there, it is going to
be difficult for the party to turn

Republicans, particularly those
who are trying to get him to go
•

he

the

drawback to the ticket.

religion is not working against
West Virginia is about 95%
Protestant.
If Kennedy makes a

LSL

right.

a

Vice-Presidency

that

ground

him.

impres¬
Nixon and the rest of the

to Hawaii

trip

the

the

one-hundred-thousand

made

on

for

1956

300,000 votes were cast.

This

and
Orie

his

The

won

man

"

letter.

he is in a neck
and neck struggle with Humphrey
in
West
Virginia.
If Kennedy
should win there, it will show that

incumbent

the

defeat

Case.

Adler,

Mayor

now

field.

primary, despite rather strenuous
Clifford

of

dency to

Kennedy
is
undoubtedly
the
strongest in the Democratic

con¬

setback

a

A.

rid of Stassen then and there.

being

is

pressure

Nixon to

as

Vice-

Coleman,

have turned him down and gotten

,

Kelly

general

has dropped

age,

permission to place Nixon in nom¬
ination. The party leaders should

run

/

upon

early

an

When

and

Congress.

put

are

party

William

on

as

with

Chairmen

at

would be

the

Senators

and

Serving

Stassen tried to head off Nixon

conservative

and

the

down from running for the Presi¬

in

candi¬

conventions

the

run

Southerners

that

since he was Governor of Minne¬

Nixon

and

that

consolation

only

and

Stassen asked for and

Presidential

horse

win

Charities.

voices raised

more

cannot

k

r

Cat holic

of Philadelphia,
joined the anti-Nixon
howlers. He is circulating an anti-

.

now

started

Mr.

has

conservatives have is that the Lib¬

sion

Mr. and Mrs. Harold

out,

for

gets

/ /./ •./< / y-. -,,;

should draft
Rockefeller. Harold Stassen, who,
sota

Bowles

lost.

•

dark

a

■

Hawaiian Trip

cal freak. But last week when the
came

on

again

statisti¬

another

both

and

tried

about

Harold Smith

lib¬

Connecticut.

votes in face of the fact that

'
the

Then

Governor of

the ' outcome-of: the

by Dr. McCracken before
Instalment,.Credit Confer¬

National

ence

re¬

million.

could

going

;-*An address
the

positions. The next

borrowed

be

not

is/a

vote

He

v

actual

are

a

■./,':'/
darling of the

working for him.

may

good year of orderly

technical

a

that

ex¬

already be
Therefore,
I would
array myself on the

to

may

year,

was

,

float

on ;

we

of

date, God forbid. However, he has
obtained a prominent place in the
convention and the lightning may
strike him.
There will be plenty
of his stooges at the convention

would

an

kind

worse

he

Republican

year

then

side of those who feel that though

violent

these

of

that

and

it.

continue

excess

over

risk

is

it,

get

getting

rather signifi¬
one paid much

dropped

snowstorms.

it

the

that

millionaire.

a

he

There will be

made

advertising

now

won.

cor¬

more

a

no

was

the

view that we

year

the

he sought the Senatorship but he and his older partner
in business, another bleeding heart
millionaire, William Benton, split

monetary policy in 1960
got in 1959 in order to

hunch

own

excess

attention to this because this

back

this

we

He

Last

earlier.
my

Bowles

who

men

of

before

campaigning.^

Americans for Democratic Action.

downturn in business activity. My

four

about

position, the

Well,

turned

need

than

bank borrowings from

Federal

effect

be

pansive

the so-called net bor¬

of member

another

true

minimize

may

cantly.

been

is

Bowles

im¬
causing

than

out

'

forces,

error

an

those

of

one

eral than

;

market

results

would

shall

these

part reflect
Federal
Reserve

in

weeks

reserves,

It

ques¬

"Do

,

of

serious

have

in

conditions

a

the

another

emerged:

committee

There

this

with

portant,

has

ago.

state

more

recent

easier

New/Yo

Bowles as
plat¬
assures
a
rip-

trying to keep
occupied in his advancing years.

about

as

Fund

Appeal of the

troubles

business and is

ex¬

policy actions have become
respondingly
much
more

Federal Reserve Policy Easing?

tion

of the

the

contest which will add to Nixon's

is

the

the

for

Chairman of the Democratic

millions

psy¬

Com¬

of

The naming of Chester

snorting leftist platform.

a

re¬

third point would be
more
evenly bal¬

my

anced

the

obligations.

In

Cardinal's

1960

Chance that we

a

recently

as

with

that

fixed

and

in

beeii

balance

extension

an

months

three

resultant effect that that has had
on

of

slight edge. With
of
inflationary

probable

in¬

with

the

general
Financial

Laity

pansion in business activity on a
more
orderly basis than seemed

repercus¬

sentiment,

the

have

can

capital markets. I
think, myself, that a good deal
of significance must be attached
to

of

the

the

of

mittee

that

recognize
have

chology there is

the

flationary

of G. H. Walker &

accepted

Chairmanship

BARGE RON

CARLISLE

has

Division

year.

must

state

abatement

is 'not

economy

a

the

.' have

expendi¬
the part of

on

BY

Orie R. Kelly
Co.

in¬

cently, but in my judgment, the
forces making for expansion still

..

.Government

necessarily
factor

of

excess

last

over

we

close

very

gotten
into
much
better
shape.
Inci¬
dentally, this is another illustration

occurred.' For

*

economic forces

claimant in the market. This time
the

4

'

form

ago

major

a

...Ahead of the News

6V2 million car sales in
year is below seven million,
would represent a significant

the

them

of

/ina??al;Diy. in

'

stance,

gen¬

erally known.
One

actually

13

Fund Appeal

pointing heavily in terms of what
was
expected rather than what

the

markets,
I
anything par¬

have

FROM WASHINGTON'

have been disap¬
pointing in the last eight or ten
weeks, but we also need to recog¬
nize that they have been disap¬

capital

don't

ticular

-in

pressures

to these conT
all, we must

developments

for

reasons

of

certainly 'recognize that econorrtic

*

economic expansion.
You are all
familiar with the facts, with the
rather
dramatic declines in in¬
terest rates. As for the

come

First

(1837)

Ralph

M.

mack

&

Dahl, Evans MacCorCo., Los Angeles, and
of the Security Traders

President

Association
Robert

D.

Jackson

&

of

Los

Angeles,

and

Paine, Webber,
Curtis, Los Angeles, a

Diehl,

and Morton Lutzker, Secre¬ past president of the National Se¬
tary.
/
:
//'// '
• curity Traders Association, are in
New York City to attend the din¬

urer,

.

plain

it

the

on

away

basis

of

statistical freaks. One would have
to

strongly
Federal

not

its

bit

a

last

the

is raised
whether or

that the question

say

very

to

has

Reserve

rather

year.

-for

average

as

stern

well

that

1959

down

go

of

then it seems
may

history

in;

good

particularly

1960

and

as

episode

a

in

matters. There was a very
policy pursued in 1959, as

money

stern

know. There was vir¬
tually
no
expansion
of
bank
credit through the year. This, it
seems
to me was desirable,, both
because
of the large credit ex¬

you

well

pansion of the previous year and
of

because

also

sentiment

inflationary

the

which

was

a

M r.

n.

o

cratic

Smith, who is
associated

est

Shear-

with

C

Beach,

.

problem

during that year.
./,
,Now that the inflationary psy¬

...

•/

curity Traders;
Association,
which
he /
for

so

well

-

Chairman.

Advertising

>

This

•

and

place
than

are
was

more evenly balanced
true last year, an easing

of

credit policy seems appropriate.

If

the

Federal

Reserve

is

relax¬

ing its stern policy, then we will
have

a

real

chance

that the

cur¬

expansion is* gQing to con¬
tinue and be a fairly prderly one.

rent

This
the

w.ere

and

would

reverse

be

of

pursued

tactics

last time. In 1955
Federal Reserve

1956, when

disorgan¬

policy was too easy, a
ized

which

boom developed.

Then

they

clamped down hard and held on
too
long in
1957," giving..-us a
somewhat
harder, readjustment.
This,time it seem^to be working
out very
,

>

well.
Conclusions

.

■

V„/ Well, in trying to balance these

plusses and minuses in the picture




of

business.

ties
L.:

to

Shaw,

engage

in

Officers

President;

a

Shaw, Vice-President and James
W. Corcoran, Secretary-Treasurer.

is neither

an

offer

to

Harold T.
a

in

New

at

135 Broadway,

from

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

any

man./; •'/■■•"

of

these securities. The offer is

April 22, I960

$6,000,000

Metropolitan Broadcasting Corporation

•>..

Winston Industries
WINSTON

SALEM,

ston Industries

in

gaging

a

from offices

Corp.

6% Convertible Subordinated Debentures Due 1975

N.. C.—Win¬

Corporation is

en¬

business /

securities

Dated

at 2080 Beach Street.

Peter F. Smitherman is a

of the firm. /

principal

'

.

Price 100%

Forms Granoff Co.
ASBURY

PARK, N.

J.

Granoff is engaging in a

(plus accrued interest from April 1, 1960)

Irving
securities f

—

at

1004

under the firm

name

from

business

-Main Street

Due April 1, 1975

April 1, 1960

of Granoff &

offices

Co.

...

•

Copies'of the Prospectus

x:

and the

••/To Form S. Freedman Co.

may

be obtained in,any State from only such of the undersigned
as may lawfully offer the securities in such State.

other several underwriters

*
t

Samuel

the

B.

New

York

Samuel B.

Stock

Freedman

Exchange,*-

& Company y

with offices at 45 Wall Street, New
York

•

1

.

member of *

Freedman,

City, effective May 1st.

:

Kuhn, Loeb & Co.

V

/. t

A

Carl M.

Loeb, Rhoades

offices

New York City.

{•*

of Charles L. Bow¬

management

York.

Connolly is conducting

securities business

NEW ISSUE

TORRINGTON, Conn. — Putnam
& Co. has opened a branch office
at 30
Mason
Street, under the

29.

Harold Connolly Opens

John

Walter

April

York,

dorf-Astoria Hotel

securi¬

are

Roy

New

They may be reached at the Wal¬

,

and Robert P. Freedman will form
,

of the Security Traders Asso¬

New Putnam Branch

almost' exactly

the

announcement

National

as

chology has

abated considerably,
the pressures in the market

to meet

a

ner

Harold B. Smith

.

years

many

Securities

ciation

Boulevard

.

primary contest in Indiana
next: Tuesday:
The private poll
shows that Kennedy will win this

National Se¬

served

Nixon and Kennedy are

in

the

in

Form Corporate

running 52% ahead of Ken¬ -TEMPLE CITY, Calif.—Corporate

would be as much as 57%

1 i f

friends

Indiana, but
would be the hard¬
to beat. The poll shows

nedy while the result over Hum¬ /Securities, Inc. has been formed
phrey,
Stevenson
and Johnson / with offices at 5816 Temple City

ornia,
greet¬
ings to all his
a

man

Nixon

son^ Hammill
& Co:, in New¬

port

in

candidates

that Kennedy

sends

// *//./

If this is the case,
me

policy

[Ed. Note: Weekly
April- 20 was $153

million.].
to.

relaxed

t i

&

Co.

14

(1838)

The Commercial and Financial Chronicle

ment is

BANK AND INSURANCE

STOCKS

LEO

BY

significant change in in¬
vestment policy occurred during
primarily
and

HARTFORD

150th

anniversary, is not only
the oldest property insur-

of

one

underwriters

ance

the

in

nation

a

The

By Paul Einzig

investment
A

respectively.

unity. One of the reasons for the inability of the "inner six" and

The rates of return
investment assets at

average

book
Hartford Fire Insurance Company,
which this year is celebrating its

tax-exempt
lesser degree in

portfolio is approximately 58%
and
42% for bonds and stocks
on

COMPANY

INSURANCE

FIRE

Stocks

Insurance

to

in

stocks.

common

—

Thursday, April 28, 1960

Western Economic Unity?

:

1959 with the continued emphasis

being

This Week

.

Will Khrushchev Save

'

No

bonds

.

proceeding along carefully

worked out lines.

BURRINGTON

L

.

value

and

before

truculent Khrushchev

"outer

Federal

seven"

to

unwittingly restore Western economic

can

bridge the gap

between them,

advanced

by Dr.

Einzig, is the false feeling of security resulting from the absence of

New
buildings
also
include income tax were 3.40%, 3.32% and
those in Dallas and Chicago. The /3.29%
for 1959
1958 and 1957
Chicago $20 million modern office respectively. The estimated tax
building is scheduled for comple- rate applicable to investment intion in early 1961 and represents come
continues
its
favorable

a

war

in

scare

the

past year. A

sharp

reminder that

aggression is still likely is held to be

a

Western

take

European

factions

willing to

without fear of loss of face. Dr.

sure

major

on

Communist

of making both

way

concessions

Einzig notes that both E. E. C, and

_

but

consolidated

basis, is
largest organizations,
The month of April is a remuneron

a

the

among

ative

one

since

they

its

for

stockholders,
a 46.7% inbrought about
in effect by a 4-for-l stock split,
Stockholder approval also paves
the
way
for
payment
of
one
month salary
bonuses to 12,000
staff

received

in dividends

crease

of

members

the

Group to make the 150th
anniversary a memorable occasion.
Organized in 1810
represents

now

the company

well

a

fire-casualty operation
the

into

field in
ten

the

the

way

it

of

gained

insurance

through a seven for
exchange of the stock

Columbian

surance

By

life

1959

share

of

balanced

route'

acquisition

entrance

National

Life

In-

Company of Boston. Thus

Hartford

Fire

Group
has
readied itself for "one stop sellmg"
of
a
complete
insurance
package.

P.

.

.

„

Licensed
Fire

has

„

..

,

Hartford
fire-casualty sub-

Hartford

Indemnity
Stock

,

all states,

in
six

sidianes:

.

Co.,

Accident

Hartford

Insurance

&

Live

Co., Citizens In-

YoXunderwriters^nsuMMe^
Tw^n ntwFhSTnLrLc^rn

London
xonaon

insurance

Canada
canaqa

of

the

Group,

and'

Co
Co.

insurance

Pi1li?,L.u^„mPrr„eA:„P:PiSe
T;r^
Columbian
National
Life
member

In
in

y

as

a"

a

name

change to Hartford Life Insurance
Company wilL become effective
before mid-1960.

Home-based in Hartford, Conn.,
Group has departmental of-

iice

headquarters

New

York,

at
Hartford,
Chicago,-San FranCisco, Dallas, Minneapolis, Atlanta,
Cincinnati, and Toronto, Canada.
In recent months
management has

=^w
opened this month
in. temporary

in

Cincinnati

headquarters,

its

office

new

will

building

this falL

Assets
the

a

nonai

underwriting

Firf 1llne,s,o?CCOU1it for
mately

44%

about

and

56%

of

casualty

the

its

25%

The

the

leading casualty lines. Hartford

a

is

sur-7

first

the nation's

tends

sell

.

frequently

and

recent

.

1954

100%

and

It

is

makings

two

BANK

LIMITED

Amalgamating National
G'indlays
Head

Bank

of India Ltd.

Bank

Ltd.

of

one

of

European
and
the

those

situations

tragedy,

a

promise.

investment.

(

dividend

'J>''*■

,

.

.t-

r

.

.

L

'

ranks.

.-

;

..

F

F

r

The

additions
for

of

1959

a

1958 and

larger sales

good

in

sented

life-in-

new

totaled

million,

IS

plan

*

$166.7

increase

over

were

class

every

elected

Vice-President

a

which

life

of

the

E.

E.

force

Total

at the

life

end of

insurance

1959

,

million, compared with $541
lion

at

the

S0.7

end

of

share

a

1958.

was

n a e

lm

a

Ir!

e

there

within

people

many

has:

the

it

by

are

another

trialists
•

N

the

seements

F.\ T.

want

in

to

E.

inclined

now

of

months.

F.

T.

A.

London

n*

countries

where

they

13

insurance

activities

National

the

Travel

James's

Dept.:

Dept.:

13

St.

Government in:

UGANDA, ZANZIBAR

&

Statistics

into

a

—

Written*

1

National

Lead

and

^Expense

Profit

Assets*

Ratio

Ratio

Margins

$1,119.7

61.3%

36.5%

406.9

908.6

60.8

37.7

374.3

785.7

62.8

37.7

354.6

770.6

338.7

millions

to

of

S.

-vLosses

incurred

61.6

754.0
to

premiums written.

Year-

56.4

premiums earned.
•

37.5

37.0

2.28%
1.47
■

-0.48
0.86
6.61

Share

Price Range

i

Consol.

Income

Earnings

1960

53-47

1959

51-42

$2.33

$2.91

1958

47-32

2.23

2.39

1957

41

2.09

1.72

Sq.

SOMALILAND

in:

-

28

AND

UGANDA,

Avg. P/E
Ratio

Indicated

Approximate

Dividend

Book Value

16.0




RHODESIA

$41.54

16.5

0.75

42.27

20.1

0.75

35.48

33

1.95

1.77

22.0

0.75

35.33

1.77

2.38

17.2

0.71

36.96

20-14

0.84

2.63

6.5

0.30

20.72

There
inere

is
is

hope for

and

10,091,236 shares, prior

deterioration

of

mental

point

of

it

Western

of the

political

course

be

exactly
would

economic

an

since

view,

in¬

situation

highly detri-

from

also

not

the

war

scares

helpful'to

trade.

certainly have

economic advantage

one

There would

the
of inducement for the

maximum

Western European countries to
close their ranksT ir! face of the
It

common enemy.
cause for well

largely be-

is

there
and because in consequence of their absence
most
people
have
been
lulled into a false feeling of se-

have been

over a

year

no war scares

curity, that the split in the WestEuropean camp has come to
develop. Since there appears to

ern

be no imminent danger of a Communist
aggression
against • the
Western world, the Western countries feel they can afford to fight

each other over issues which, imP°rtant as they are, disappear in

significance

compared

with

the

considerations. of

se-

curity against Communist aggres-

sion.

L

n^:
vides

the

Western

world

forceful reminder that

a

is by no
past'

?S 3 ™atter of

w

with

the-danger

split through 19GO. Figures for 1959
are based on
10 million shares.

years

are

The

only

issues

them, important
then

appear

that

separate

they

as

will

are,

of trifling impor-

as

tanee compared

with the need to

the stand firm against the unjustified
increases by Soviet demands,
as

0ne

of

one

the

effects

the

over

0f

Berlin

the

war

situation

ucs win aaopx
a more
conciliator
in
the
matter
of
their

ever.

trade conflict.

Hope

would

be

remaining

For

able

one

to

.7,

.

thing they
major

make
,

'

,

tj

restoration of Western

<;°ncessl°ns without fear of loss

unity. Paradoxical as it
must sound, it seems
possible that

as V?«U, as °f secondary interests

a

economic

Mr. Khrushchev

service
the

ing

to

last

the

thing

Indeed

see.

a

might render this

Free

he

World.

would

clash

It

like

between

is
to

the

rival

trading groups—implyit would a split in NATO—
suit
his
books
perfectly.

as

same

there is

unintentionally he

about

precisely

would

the

a

chance

will brim*
result

he

wish to avoid.
are

the

on

eve

of the

Sum-

miartplf
c^ah°USnhopes
maiF
quarters attach sanguine
to
that

meeting, the realistic view is

that

it

to

is

yield

and
on

such

—

Paradoxical

doomed

Communists

♦Adjusted for stock dividends

would

result

con-

pttnph

45

based

the

;

;

a

attitude

The

'

We

0.75

47-35

PROTECTORATE,

SOUTHERN

Such

The

R« and

S.

ternational

groups are as remote as

$1.10

1955

1949___

the U. S.

scare

But all the

1956—

-

putting

sharp conflict between

a

countries.

ablLBut aP WneLTe^LXnc^

would

Statistics*

Investment

Parlia¬

James's

^Expenses incurred

„

Sq.; and at
51

and.

solution.

agreed;

an

would be

flict.

determent of tariff
f :
or ! "eir aPPlication

that

ADEN, KENYA

ZANZIBAR,

SOMALILAND

V^P01' concessions

,

fLoss

388.4

343.4

Company,

Admitted

Earned*

426.2

360.7

thif

simnosA

see|ns P.racUcally certain

Underwriting Control

1957_

1955

reaTon t^

nn

that; the Hallstein Plan will be
Investment AH1 into operation, although some

1958

1956_

Con-

treaty with East-

peace

trl^'wnnn? °f Communis'

there is

^

INDIA, PAKISTAN, CEYLON,
BURMA, KENYA,

TANGANYIKA,

the

.

,

Growth

$426.2

Moreover, it is
many people hos-

by

even

'St^

of

ucts, Inc., May 19th, and Hercules
Powder, June 2nd,
'
- -

depart-

Per

PROTECTORATE
Branches

*

21st;

(Hartford

group

Approx.

SQUARE, S.W.I

Ins.

Wall

— The
Analysts Society of Chicago will
have as the subject of
their"spring
meetings, Allis Chalmers, April

the

of

Company

integrated

Branches

St.

Nairobi;

44

are

plans accordingly.
argued

members

CHICAGOi m.

planned expan-

PARLIAMENT STREET, S.W.I
ST. JAMES'S

Citv

a

Germany

ern

Indus--overriding

.

the

of

to

deferring

18

know

vlrv Lilt' ChlCag° Analysts Meetings

consolidation

A.

Ma^ f wiil admit Joseph J. Flan- in 18 months' time than it is
"ery to Partnership.
.
day

fire-

of

York

the

deadlock,

a

^ slbck E^changt &■.be°eaX°^VcZIZZ teconSZ'Tetr^ attUudl'^
to- ward?the E E. C.-E. F T. A

contributed

of

-

TIPT*

mil- shields &
Comcanv
esti-'

An

for

been

ever

E.

sible moment instead of

x

working very closely

piogram

and

nt

w•

♦.

AnTTllr

in

$647

was

more

C.

■

Even

of Jr R>

-

gain

a

1958.

over

.

E.C.3

M

'

Phillips Investment Company, Incorporated, Houston Club Bldg.

repre-

signing

But

Hallstein's-'acceleration

than

before.

SMSK Shields & Co. to!L.:
represented
38%

*In

Office;

,

today much

is

within

Professor

A *

^

-r

that
in

end

And Mr. Khrushchev has repeatedly
announced
his
intention
of

are

HOUSTON, Texas—As of-ApriL25--favor the "idea of an acceleration
Wilbur E. Hess, formerly-a partner —if only in order to
bring about
Gf Hess
&
Company, has-been a showdown at the earliest pos-

agents.
surance

There

support

yt

will

7V/rCritlf1lsm of the E. E. C. by Mr. ^on?mic ^
Macmlllan and other spokesmen be in such circumstances

V

:
>

probable

seems

because

•, Factions Still at Loggerheads

two

BISHOPSGATE, LONDON,

rival

,

.

1955, and

stock

."WlluUl* JlxGSS

force, which approximates 36,000

1959——T— $478.3

NORTHERN

the

trading -groups — the
Economic
Community

still.

,

1873 and several

since

v
ttt.ii

—Net Premiums—

ADEN.

between

It

ference

have argued each other to

UfeTohc'fel arelxpectedL WifV, T P; PVlilliPS
easily into the existing sales
VVTvIA tr* Xv. X J.llliljpo

Year—

NATIONAL AND GRINDLAYS

■

The spokesmen of the two groups * ment in control of the approaches
a stand--to West Berlin, in the absence of

lower

no

"/v.

f,.r

out-"European Free Trade Association.-Eastern German puppet Govern-

underwriters,

to

value

each in

sound

profit during the recent adverse

Selected

the

Group
for the

for .conflict

j£e reqent iuu>/* stock a™ePO
stoL solit With several

of

more

among the select few underwriters
who were able to underwrite at

and

to

stock

lnterruption

line

classes

written.

uj,«
«
Indemnity

Bankers

of

.

1959

Western Germany initiated postponement of

July 1 European Economic Community deadline.

Qf the E F T K point of yiew
conhave utterlyfailed to make a dent
imp0rtant fire lines include Fire, .olidation
and
expansion
steps
in the armor of the E- E- c- In"
^uto Physical Damage, and Exunderway ' and" its " "all** lines"
deed» as a result of the attack
^encje(j
Coverage.
Auto
Bodily insurance in ' operation4'*&n ;ek'Jv,from' tke outside the conflicting
Injury'Workmen'S CompenSation' Pected return to mor® normal interests within the E. E. C„ and
OtherBodily Injury and Auto underwriting Results supports within each member country of
Property Damage account tor the Hartford Fire Insurance - as ' a* 'be E. E.'.C., have closed their
insurance

single

St.;

Fire

billion

one

of

impasse despite opposite prospects entertained

an

LONDON, England—A very dangerous situation has developed in
Western Europe as a result of the

the

'"standards
" 3t°ck
dividends, have been destandards,
clared, including 33V3% in 1949,

underwriting

group

ment

$1

As

end

standing insurance

accomplished without any reiaxa-

Columbian

Depts.:

V:
investment in-./,

.

on

Rd.,

and

con-'

at

are

few weeks ago when

a

President,
1959—though not fied insurance and a high quality each side is so firmly convinced
§ood y/?ar for us lnsurance-wise growth equity.
..
;
/ that it is absolutely right that it
d?d
a ™"Ctb £??
wn
Dividends> although conserve- is, mot prepared to yield to the
»«««"»
-ive'
a7e been paid -without other side for the sake of a com-

sion,

Trustee

sound

as

a

hhdness

Govt.

E. F. T. A.

to

j*1 Rewords of James D.Hullett, shares represent awidelydiversi-

Ma

13

1955

The company is noted for careful the price goes to a premium. As ln which both parties are right,
selection of risks and its better one of the most profitable, oldest viewed from their respective
than average underwriting results, and largest concerns its common angles. Such situations have the

casualtv-life

54

the

at

Hartford

passed
time.

LureTi operatieonrsnmgS ^ ^

26

described

profit margins improved to 2.28%. than book

-ated

and

in

conservative and
come growth is expected to
tinue ? above
average
for
industry.
"

gain
of 12.2% ; to
million, and underwriting

$478.3

be

can

in! 1959

written

from 22.9%

—

12.8% in 1959. Investment policy

it i=

expanding network. Its Central
(states)
Department, which

into

premiums

registered

fit

the

move

Net

Hartford

Fire

trend

the company's largest construction
project since the building of its
Home office at Hartford.
Contingent plans have been revealed
for a new building at San Francisco which would increase the
company's present space facilities
by 500%. The increased physical
expansions should have a marked
effect on future operations.

the

likely to
in

are

to

failure.

utterly

The ,sltuat'on may best be comRared
^ 'bat of the Vienna
^or|Sress in 1813-14, when the
Participating Governments had
?een utter'y ""able to come to
'er.ml ove^ a pe"od °,f m0"ths'
the return ,of Napoleon from
?
s00n res^ored tke
united
front 'n .lace of the common dun_

ger- °ultc Possiblv history might
repeat itself. And Mr. Khrushchev

beyond certain limits
making concessions,

down

n.igui

go

chief

arcVitect

rnnpari

in

of

history

the

as

Western

Eu-

,,nitv

P

y'
i

1

t~\

G. J., Lilasheen Upens

unlikely

the question of
Berlin,
Western Powers are not
go

^uld.(fad® lnto theu background,

The

on

the way of

f," Considerations of prestige

:

NEWPORT NEWS, Va. —Gabriel
J. Glasheen is conducting- a securities
the

business

from

Exchange Building.

offices

in

Volume

191

Number

5946

W6... Can Grow
••

Commercial and Financial

The

.

Lot Fastor

a1

"

*

With

.

.

Rockefeller,*

The
Mr,

Chase Manhattan

RockDllar

growth,
rate

there

frtm

is

"enlist

enunctatas

without

rise

.

to

accalerata

to

encroachment.

and

5

of

Directors,

pssssbly 6%

Ha

projects

a

growth

the supposition

on

wall-conceived

and

economic

cur

national

that

effort

to

growth

spur

deal

investments

with: -increasing

to

and

improving

increasing trend

toward

educational

our

how the taking of a hard choice can
is

ness

called

architects of

our

that

take

it

will

rise

to

upon

and

hard

as

of

responsibility

being

the

efforts

maintain

to

r

accusations

are

for

in the period since

3.7%

that

in

vigor,

confidence

in

resolute

mora

efforts

than

have

been

forthcoming

to

date.'!

1839.

the

sat down

fu¬

near

ture unless we

ize the America of the 1960's.

At

do

better.

the

same

time,

it

has

been

David

Rockefeller

argued that rapid economic growth

inflationary
must accept

is possibly only under

conditions,
a

we

meet

to

are

stability.

we

the

goal of price

finally,

And,

who

those

that

so

modest rate of advance if

more

that

say

there are
nation's

turn out.

now

How

does

one

If

out

sort

these

*

y

attention to
the development of the broader
values of our society, I believe
we

proper

pay

it would be desirable to
rate

our

of

could

it

economic

be

three

would;

such an
accomplish

things:

enable tl^e na¬
urgent needs in such

it would

First,

tion to meet

fields

schools, urban rehabili¬
tation, foreign aid and defense,
while still lifting living standards
as

fast as, or faster

than, the longclaims and counterclaims? What
term average. More rapid growth
do they mean to you as citizens
and businessmen?
What can in¬ would give us the resources to
dividual businessmen do to sup¬ 'make a greater contribution to the
vital task of supporting economic
port growth of the over-all econ¬
development throughout the pres¬
omy and thus provide a more pro¬
pitious atmosphere for their own ently underdeveloped areas.
Second, a higher growth rate
businesses?
would help check rising prices—
To my mind, it is vitally im¬
with
a
more
as

portant that businessmen be con¬
cerned
about
economic
growth
work

knowledge
about the significance of growth
to their own businesses, to their
and

to

communities

spread

and

nation.

to. the

Retailers, too, have an important
interest in an expanding economy,
for sales are closely related to the
level of income generated through

nations'

the

production.

rapid

increase

in

productivity, the nation could af¬
larger annual wage increases
without pushing up prices.

ford

Third,

if

we

economic

our

demonstrate
free

world

the

that

services provided by the nation's
nine million farm and non-farm

businesses, and by the more than
100.000

governmental units. I refer
growth, not to expanded
dollar values due to inflation, for
I believe there is strong evidence
that price stability is the condi¬
tion under which growth flour¬
ishes most vigorously in the long
real

Without

social

Before

turning

to

a

considera¬

tion of what could be done to

ac¬

celerate our real rate of economic
advance, I should like to deal with

to

preliminary questions: Should
assign a high priority
encouraging economic growth?

Is

it realistic to

two

nation

talk about accel-

.erating growth?
Not
our

is not

an

an

can

sup¬

greater

new

technological

scien¬

A

the

purpose

colleges

second

of

sume

a

was

to

open

mosphere

bred

him.

of!
ideas, a willingness to adapt'
to change, and a desire for indi¬
vidual
self-development. In ad¬
dition, the American character re-1
fleeted an unwillingness to accept:
conditions that implied any strat-;
ification

of

social

classes

society, economic growth
end in itself. It is valu¬

tributes

to

the

enhancing

broader

objective

individual

/

dignity

and

providing greater opportuni¬

ties

for

individual

development.




many

of the

and

the cloak
been

have been illself-defeating. Thus,

of economic

growth has

attitudes

has

no

growth.

growing

population

Our

million is almost 50%

In

a

been

in.science

making for
develop¬

internal

and

supplemented
of

the

and

more

by

investment

an

than $10,000 in plant and

technology.

equipment, and the figure is

combustion

higher in such industries as chem¬
icals, petroleum and steel. The
total amount of capital goods per

electricity, new metals,
chemicals, new methods of

worker has doubled since the turn

multiplied six-fold in the postwar

equipment and building now
being used) j by businesses of all

of the century.

level

it would cost the vast sum of $750

of

research

period,
they

$12 ^

on

technical
If

!

the

this

the verge of

have

you

the
the

fice

a

doubts

about

United

who

States

the

about
remem¬

official
Of-!

resigna¬

In his part¬

nearly all in¬
could possibly be

telegraph,

the

Office

would

have

was

rapid increase in pro¬
duction, it may be useful to re¬

How little did he understand what

to

sure

close

soon

sorts.

-

Key Role of Capital Investment
While

of

ing letter, he explained that with
the steam engine, the telephone
that

replace all the machin¬

ery,

signifi¬
rate

Patent
his

submitted

tion in the year 1880.

the

all

of

these

for lack of business.

our

factors

an

offer to sell

The offering is made

nor a

capital investment occupies
tral

role

ence

the

in

process.

nations which take the steps

to

other requirements for growth.
In

tion

the

postwar period,

invested

about

11%

Continued

any

of these securities.

;

Price
h00 per

as

may

jection of such proposals, how¬
ever,1 many business spokesmen
appear to have taken a negative
approach which has encouraged
the popular belief that business is.

may be obtained from only such of the
lawfully offer these securities in this State.

S. D. Fuller & Co.

na-.
each

production in new plant
equipment. This annual in¬
vestment supported an increase of
almost 4% per annum in the total

Applied Electronics Corporation of N. J.

Copies of the Prospectus

of

and

A pril 26,1960

(Par Value $.10 per Share)

our

year's

solicitation to buy

Class A Stock

nec¬

produce a high rate of
investment will usually meet the
essary

only by. the Prospectus,

200,000 Shares

a cen¬

Experi¬

around the world shows that

NEW ISSUE

underwriters

have

important in the growth of
economy, it seems to me that

the future would bring!

This announcement is neither

that

are

been

technology,

story

billion to

Estimates

Thus, we

the

in

that
of

sum

progress.

future of

ber

year.

acceleration

cant

are

reach the huge

billion

be

may

estimates

and

may

inflation.

entirely warranted re¬

even

these de¬
have advanced our
living. Expenditures on
and development have

processing—all of

that such measures could
produce
the
illusion
of
their

larger than

that 30 years ago. In our economy,

and

growth through price

a

making for growth.'
current
population of
180

by some to cover pro¬
that government assume
the central responsibility for pro¬
moting rising production through

more controls, more and
government spending, and
easier
and
easier
money
and
credit. Experience provides ample

is

factor

used

more

are:

extremely important, for growth
is, in large part, the result of the
state of mind of a society. It is.
the so-called traditional society—
one
that opposes change—which

posals

more

re-s

ho¬

opportunity for*

These

advancement.

propos¬

of growth

or

limitations upon the

strictive

rizon of individual

als that have been put forward in
name

at¬

new

proposals to encourage economic
growth. This is an understandable

the

This

acceptance

an

defensive attitude towards

reaction, for

never

our

turning to the question
of what might be done to encour¬
age a more

tive

made, had been made, so that he

Before

individual

West, he was influenced in
his thinking and his behavior by
the knowledge that this alterna-'.

and

to

factor

has

ventions

Contributing to Growth

major

the

went

-future.

foreseeable

of

of adven¬

velopments

and

ments.

the,

.

today.

if

—even

note

a growing population provides op¬
universities, portunities to* expand markets.
better and
The fifth major factor support-,
a fuller life for individuals, their
ing growth has been the tremen¬
efforts have
also supported the dous increase in the amount of
advances in technology and prod
capital in use. On the average, the'
uctivity.
efforts of each U. S. worker are

in

develop¬

great

In

Europe

contribute

to

new

chal¬

of the world's

one

existence

of all Americans

the lives

Government

If, then, accelerated growth is
desirable, is it a realistic goal?
There
has
grown
up
in recent
years an unfortunate tendency on
the part of business leaders to as¬

proof
only

End in Itself

able only to the extent that it con¬
-

in

food

lenges and opportunities to indi¬
viduals in business, and to make

Factors

/

The
a

fourth

is

in the 1960's

of

have

attitudes.

the frontier lent
ture to

present, one-third of the persons
of college age are in college, and
the ratio may reach one out of

Steam

dimension as com¬
pared with the past. We have made
progress in moderating recessions
and
containing
inflation.
And
business is developing new tech¬

use

turned

tradi¬

a

itage of the frontier still plays an
important part in shaping our na¬
tional

Our

schools,

new

effective

be

has

tion that favors growth. The her¬

At

While

against 1
% in the-1950's. In¬
dustry's effort in the field of re¬
search and development is of an

and

education

revolutions.

two

as

more

in.

for;Western

bettered. Our labor force will in¬

tific

manyfold

could

out of every 100 went to col¬
lege—and this is the normal ratio

there are realistic
for
believing that past
rates can be matched or

provide

equipment,

one

Moreover,

to

in

1900, only
stayed
in school past the age of 15; now,
virtually everyone > goes through
high school. Just 50 years ago,

of America's
past, economic advance.

niques

and

that

We

invested

young person out of 50

one

proud tradition

entirely

and

given effort. And ad¬

a

nation is

Encroachment

.

advised

run.

of

with

engines,

year,

a

important fac¬

America

speaking of economic growth,

refer, of course, to an expanding
of
production
of
the
countless millions of products and

In

amount

out

»

environment.

multiplied

the

ity of being the architects of future
as they were of

a

result of

a

future-of- enabled us to use tools effectively.
The educational change in our

the

economic growth

1%%

for

increase

that

a

match ''the
growth record of the Soviets, and
provide a far greater measure of
individual well-being and oppor¬

volume

the

has

ica should rise to the responsibil¬

crease

more

is

advance, we would

to

economy

I

to

developed
machinery

ments

reasons

man¬

A third and very

tor

15

accelerate

could

tunity in the process.
In

economic

growth

the

secret

of

have

that the business leaders of Amer¬

accelerate, growth
tf

advance,

achieved,

acceleration

the

major problem is not to produce
more, but make better use of what
we

to eat, and

real

have

This

work.

able

vances

■

they rose up
to play." We must make sure that
such a phrase will not character¬

in

of

the

ported technical development and

imagination,

.

us

the
we

productivity is

our

which

.

surpass

hour

new

n'ew plants and equipment, sup¬
porting research and development,
and devising more effective pro¬
I.want to discuss economic growth As such, growth is an intermedj-' duction
and' management
tech¬
ate
—a subject that has been much in^,
-objective. It provides a ma¬ niques, businessmen have under¬
the news of late. There have been terial basis for* advances in edu-" written our
past growth.
charges that our economy has not ; cation, the creative arts, individual
been growing ;/.• "V;
freedom,
and
the
moral
standards
; A Challenge
to Business
r
•
-; j
as
fast
as
it
governing individual conduct.;/
;;;; Thus, :1
believe businessmen
cou l d-'
o r
However,
j.
as' history
clearly
.-:j
should be vigorous proponents of
should.
More*
shows, growing wealth is no guar¬ effective
policies to maintain or
antee of progress * towards these
specifically, it •
increase our real rate of economic
broader; objectives. It cam provide
has
been'
growth.; Business should not stand
the opportunity—but how to use
charged
that '
by and let left-/'wing.'elements,
the S o v i e t s
growing wealth wisely and con¬
claim credit for a growth record
have been out- .■
structively^ is one of the major
which
was
really
achieved
by
challenges facing America. It has
pacing us
on
measure's other than those
they
been
said ofsome
ancient
and
the
economic
advocated. What I am urging is
decadent civilizations that: "They
front and will

and

that

of

factors, including
education, technology, capital in¬
vestment and a generally favor¬

sustained

of

record

The

economy to-*

review

aged to produce steadily

the

by* business
leaders has played a most signifi¬
cant role in producing this phe¬
nomenal result. By investing in

dynamic growth and that to accelerate it-"will require even harder-*

shows

A

growth is that

combination

and

*■

record

approach to growth. Business can
justly point to a solid record of
accomplishment. Our total nation¬
al production, measured in dollars
of constant purchasing power, in¬

American displayed

our

growth.

each

growth.>

impelling the

wards

unwarranted, but I be¬
lieve business must take a positive

match

the

growth. The N. Y. banker cautions

persevering

Such

tant in

of

Thus, total output doubled every
19
years.
No other nation can

example.of

an

soci-

where respond.

of

and

result in greater output. Busi-

to: the

future economic

Checking

system.

is cited

leisure

more

y

opposed
modern

which

creased at an average annual rate

■

savings reforming tax laws, stimulating research, development and
marketing,

view
briefly
the
factors
that
history shows to have been impor¬

most part

Bank, New York City

program

government

3.7

Board

support for the many difficult steps that must ba taken/'

.

Measures

a

weil-artlculatad

a

.

Vice-Chair man,

to

pirations

•

f

By David

(1839)

4°^ St°be

■

Real National Effort

a

Chronicle

Share

on

page

24

16

(1840)

Chronicle

The Commercial and Financial

THE MARKET

a

AND YOU

...

in

split and a higher dividend
the works, American To¬

bacco

,

Thursday, April 28, 1960

.

.

part of the overall picture. Rheem's fortunes continue to
improve.
v

er

The other half of its business,

held all year in a chemicals and other rubber
[The views expressed in this
article
of only a shade over goods, is an expanding one do not necessarily at any time coin¬
seven
points. The split shares, with foreign operations play¬ cide with those of the "Chronicle."
trading on a when-issued ing a big role and supplying They are presented as those of the
author only.]
basis, have wandered over a about a fifth of its earnings.

BY WALLACE STREETE

has

range

The stock market had to
tend

with

more

The

con¬

selling this

week that carried

was

prices back

down to the levels of

one

month

a

is

steel
operating rate
being watched closely as

Its capacity in producing
yield polyester resins for plastic
on
the indicated new rate boats, for instance, was in¬
runs
better
than
5%. The creased nearly a third last
market price is less than 11- year and is being expanded
times last year's
earnings and by half again this year.
around
10-times anticipated
Utilities Perk Up
results for this
year where
The better-acting, although
price/earnings ratios for the
far from sensational, section
glamor stocks run 40 or more

American

indicator of how business

faring,

but

slight

a

earlier and in

im¬

position to test provement in the rate did
early March low. But the little for the market or the

the

list

in

was

such

test

a

business

rush

to

was

cheerful

stage steel stocks. The predictions
and, in fact, the here were that the rate would

no

news

fall

to

around

75%

the

as

enough to leave wide open pipelines filled. But so far the
the question of whether
any rate has only dipped to 78.5%,
such action

was

and then rebounded almost

necessary.

of only 1 lA points.

range

Proposed Changes

Tobacco's

times results.

in

"V

a

has

markets

recent

In Officials of

United Fd. Groups
Dudley F. Cates,, general partner
of Kidder, Peabody &
Company,
will

investment

been

the

the

"Despite all the cancer
point. The handsome earnings scares that
have come along,
reports
for
the
first
cautious,
quarter,
per
capita consumption of
which
started
to
however, particularly those
emerge this
cigarets has been increasing
who have
already gone on week, aren't expected to do
steadily since 1954 and at a
record as predicting that both much for the market since
rate that runs ahead of the
the high and the low for this good results had been antici¬
population increase, reaching
year
have already been pated generally.
record levels.
health

utility stocks, the demand
highlighted by the first quar¬
ter reports of the funds that
showed them shifting to de¬
fensive utility issues in vol¬
ume. The
above-average
yields in this area are the gas
stocks despite the fact that

in

posted. From the all-time
peak in early January in the

of

their business has been pros¬

to

*

*

Technicians

*

•

,

were

The

Dow

In

industrial

average,
to
low, this index has

the March

chance of

a

auto

Ford

good

working out.

for

range

all

of

absence

shares

inventory,

Good

subdued.

on

for

carried
this

it

to

Earnings News

r

a

year.

on

the

lows

new

lists

when

ran

than 100

the

steel

strike.

precedent for
dawdles

questions

So

there

market

a

until

will

be

to

prove

spring

upturn

winter

is

basic

some

imposing one at the
is how
healthy the

The

moment
economy

the

once

after

hard

a

spread

records.

is

the

on

vorable comment from brok¬

V

•—

has had

the tobaccos. Despite

ers, was

over

a

seven

points

total range of
score of
points,

you

know when

Thousands

of

to sell

when

it

investors

Accordingly,

comes

to

the

think investors will be

we

are

too

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

dollar. You

copy

will be rushed

may use

to

you

immediately

the order form below if

you

*

25

PARK

B.

DANA

CO.

on

receipt of

one

desire.

*1.

Kindly

my

copy

"WHEN

TO

SELL

a

year.

It

candidate

moderate

in¬

by the profit

the

on

shares

for

U. S.

Rubber's fate in the

generally

is

tied
new

in
car

to:
•

sales.

This

logical
Street

sales

.




business

and

expanding into
more
promising

and

new

production of

net

moves

by

company

.

ment

with

the

Securi¬

Exchange Commission.
The 200,000 shareholders of
the
Fund, which has total net assets
of

excess

$730,000,000,

approve

a

are asked

contract

new

with

are

isn't

since

new

completely
only half its

from tires and about

two-thirds
are

of

the

replacement
car

orders

President and
nental
&

and

Reed.

director of Conti¬

a

director

a

..

of

Waddell

■

..

It is proposed that the

voting of
Reed, Inc. be placed
six-year voting trust to be¬
come effective
July 1. To establish
the
trust,
the
principal share¬
Waddell
in

&

a

holders—Cameron K. Reed, Kan¬
sas
City,
President
of
United
Funds

and Waddell &
Reed, and
Chauncey L. Waddell, New York,
Waddell &
Reed chairman, and

President of Continental—are de¬

positing

all

of

their

holdings

of
(voting)—
voting
trust.
There
are
104,420 shares
outstanding. Minority holders of
B

the

stock

common

shares

class

B

—

under

stock

the

will

have

the

right to deposit their shares also.
Reed

•:

sell

and

Waddell

propose

privately 25,000 shares

ing

trust

of six

the

certificates

to

to

of vot¬

a

group

persons, including Cates and

other

voting
trustees
and
grant Waddell & Reed, Inc. an
option to buy 19,080 shares.
The

proposed

voting

trustees

are

Reed, Waddell, Cates, B. A.
Tompkins, New York, former ex¬
ecutive
Vice-President
of
the
Bankers Trust

Company; and Joe
Merriman,
Kansas < City
mortgage banker. A. W. Hillmond,
Kansas City, Waddell & Reed na¬

Jack

tire

sales

casings.

are

a

sales force of
nearly four thou¬

sand

results

of

all

the

Rheem is now a
with interests that

and

registered representatives in

48 states and Puerto Rico.
"

Messrs. Reed and Waddell have
announced that

their

they will continue
activity in the affairs
Funds, Inc., Waddell &

full

of United

Reed,

Inc.

search

Corporation.

and

Continental

Re¬

Mass. Life Fund

heating and airconditioning equipment,, plus
easy and
a

turn

year

over

Name.

-

Sleeper
shares'

that has

area

improvement in electronics.

with the fortunes of
STOCKS"

filed

and

72,580

market

than twice

market
of

ties

class

electronic

in this

the

.

rush

been

for the

big
play is well known. The chore

final quarter last
year. Even
the new rate is covered more

*

PLACE, NEW YORK 7, N. Y.

enclose

has

year

same

the

to

reported

Gentlemen;
I

each

An Electronics

The

The

1959.
WILLIAM

dividend

past six years.

❖

in the
payment in the

crease

For

statement

was a subsid¬
tional sales
split in 1956
director, will become
President of Waddell & Reed.
only about a iary, Rheem Semi-Conductor
With
headquarters
in
Kansas
hovering cur¬ Corp., which last month City, Waddell & Reed maintains

earnings of last

addition

high and sale should be considered. It also

outlines which stocks should be sold
first.

Your

the

increased

increase

available

for dividend

signals that

when stocks

since

the

in

lines. One such

also is considered

eager to read this timely new
monograph—"WHEN TO SELL STOCKS." It sets forth the 7 basic
guides
selling stocks and clearly defines the 9 proven market

for

warn

shared

currently vary from steel shipping con¬
price it sold tainers, to water heaters
which
are
for five years
perhaps best
ago. It offers a
yield of above 4% and sells known in connection with the
at
slightly less than 10-times company, to handling equip¬
is

at about the

YOUR market profits?

on

and since

>

neglected item in the

which

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

have

started

The

AND

and cash in

shade

rubber section is U. S. Rubber

COBLEIGH

employed by
Funds, Inc. group of
funds, .and one of five

voting trustees of the Fund's prin¬
underwriter,
Waddell
&
Reed, Inc., under a management
realignment outlined in a proxy

million retail

expand¬
ing steadily and the holders

transistors.
_

ARTHUR GRAY, JR.
Do

a

Its business has been

rently about in the middle of

"WHEN TO SELL STOCKS"
/

solidated has

the range.
*

U.

a

were

a

By DR. IRA

only

range

the shares

DO YOU KNOW?

Con¬

cipal

5% return. Con¬

a

kept the
analysts busy is find¬
ments, the first two appearing country. The
company is ing neglected ones that par¬
at highs for the
year in stark prospering in the face of all ticipate in this rapidly grow¬
contrast with a
general mar¬ the problems that face the oil ing industry. One such might
ket that .was well below the
be Rheem
Mfg., a company
industry, having posted rec¬
that changed
peaks.
ord
management
earnings
last
year
and
#
❖
$
four years
ago and set out on
projections indicating n e w
a
broad plan of
The restrained
lopping off
section, peaks this year.. Yet for all
even in the face
sections of its
of some fa¬ this year the stock of Phillips unprofitable

that

answered.

are

offers

are
similarly neg¬ customers and supplies
despite some
good wholesale to such important
earnings reports, and a clus¬ industrial cities as Cleveland,
ter of them
appears regularly Youngstown and Pittsburgh.

any general selling is around.
the
excellent
first
quarter New unrest in Venezuela
only slightly more
points with the low earnings report of Ford which is so vital in the plans
posted in February and the served mainly to bring profit- of a giant like Standard Oil
peak on the year's final ses¬ taking into the issue.
of Jersey
obviously was no
*
*
*
sion. The Dec. 31
peak, which
help to the companies in¬
The d emand that was volved in that
bettered the earlier high
country.
posted on Aug. 3, indicated around centered on special is¬ Phillips Petroleum,
however,
sues
such
as
mostly that the list coasted
Polaroid, Min¬ is the "domestic" company in
for the final five months of nesota
Mining, Universal that by far the bulk of its
the year,
weighed down by Match and Texas Instru¬ needs are produced in this
year

of

Corporation, the

United

mutual

Consolidated Natural Gas, for

one,

lected,

Like
with the steel shares,

case

its

Oils

exception,
volume and on

that

out

run

Oils Ignore

up

the

was

low

makers

clean

has

President

advisor

Continental Research Corporation.
efficacy with smokers, al¬ pering in the recent, uncer¬ If the
proposal is approved by
tain general business climate.
though not with investors.
shareholders, Cates will become

clearcut

auto

to

were

showing

the

of

excessive

setbacks
new

last

that

starting

their

Prospect of Market Dawdling
The

the

indications
were

already carved out a range of
around
90
points to give
enough latitude so that such
predictions have

question

Motors Subdued

become

tinental Research

a

The

task

until

last

year.

Until

were

dealt

turn, holders

token

wasn't

earnings didn't show

10-cent dividend
per

for 1958 and 1957. Last

Massachusetts Life Fund at March

31,

1960

743,151
of

702,319

were

duced

in

the

final

quarters of the year,
management

b 1

e

share

and
net

the

so

the
to

siz-

solidly-based. Per
for

last

year

was

to

the small¬ J
mpx o vemeixt in time

for
as

$57,-

1959.

were

March

re¬

31st

invested

in

short-

medium-length bonds. During

the

quarter,

was

made in Eastman Kodak. Net

asset

value

high,
over

same

was

and

major

.a

per

ing amounted

Toom

gain

a

to

at the year-end with

proceeds

ter to the

dividend pay¬

at

of

$51,-

31,

holdings

58.66%

1960

new

to

31, 1959,

December

$1.44 which gives solid shel¬

So out, but still leaves

assets

compares

stock

from 65.01%

seems assured

that the
progress is now
a

two

This

at

Common

total

compared

as

March

at

11.4%.

year two payments of 15 cents

made

reported

$57,645,543

share

acquisition

March

31,

$20.61. Shares outstand¬

an

to

2,797,408,

increase

of

a

the shares
outstanding at

time the year before.

new

16.5%

the
~

Volume

A

191

new source

of energy,

natural geysers,
a

Number 5946

.

.

.

The Commercial and Financial Chronicle

(1841)

17

steam from

is being harnessed at

12,500 kilowatt electric plant north

of San Francisco. ■.

.

"

o

P-G-4E*

We have

Excerpts from 1959 Annual Report
The

1959 brought to

year

close

a

a

decade of

exceptional growth and

prosperity in the area
Company. The surge in population,
the expansion and diversification of industry and
served

by

our

the mechanization of
increase

demands

required
over

electricity and

gas

period of $1.7 billion.

and electric
of assets,

which

total about $2.4 billion. Ten

now

the Company had 2,259,000 customers;
today it has 3,568,000. Only six other corpora¬
years ago

tions have

more

crossed

over

growth, family formation,
expansion—the ten
promise of

the threshold into the

an

new

To meet the

housing, industrial

growing demands

on

sound

manner so as

securities and to protect
tomers and stockholders.

the interests of its

impact

on

distort

other

year

OF

OPERATIONS

normal
1959

Operating Revenues and Other Income
Taxes and Franchise

Payments

Natural Gas Purchased

"Operating Payroll

.

.

.

.

....

Charges

.

.....

Net Income
............

584,879,000

$

141,243,000
135,933,000

$

74,893,000

$

148,073,000

.

$

84,737,000

.

$2,387,411,000

.

.

Construction Expenditures

(MCF)

.

.

.

158,693,000

.

21,513,141,000

.

335,926,000

Total Customers
Number of

this year on a 60,000 kilowatt nuclear

€

3,568,388

Employees

Number of Stockholders

.

.......

:

18,023
225,623

this end

material
was

period of

to

dry

deficiency in

our

which reduced

our

steam-electric plants, with

and it is

also

a warm

year,

associated loss

an

now

ed to

No

preceding

over

new

half

a

were

years,

amounting to
well below the levels of

was

For

more

information




on

this

GAS and
MARKET

STREET,

a

soon so

project

succession of hearings

in both countries,

necessary

authorizations

that construction
year.

can

get

Few under¬

added to

our

electric
THE

up, we

believe the past

year was one

accomplishment and that the Company

stands

on

to

the

threshold

of another

stockholders, that the

gen¬

BOARD

OF

DIRECTORS

President

ELECTRIC COMPANY
SAN

FRANCISCO

6,

great

a source

Company enters the

decade of the Sixties with greater financial
than at any time in its history.
.

Chairman of the Board

245

from the Province of Alberta

of satisfaction to your management, as it must be

working day.

FOR

PACIFIC

a

project to

period of growth and development. It is

but nevertheless amount¬

million dollars each

capacity

years on a

by the middle of this

Summing
of real

Expenditures for construction,
$159 million in 1959,

To

takings have exceeded this in long-range signifi¬
cance to the
Company and its customers. -

of many millions of dollars in revenues.

the two

gas.

which materially reduced

heating with

space

gas

hoped that all

under way

electricity for agricultural pumping were
greatly stimulated by the lack of precipitation.
sales for

than three

subject of

will be obtained

conse¬

sales of

was

our serv¬

working diligently for

before governmental agencies

hydro¬

quent increases in fuel costs. On the other hand,

It

more

has been the

year,

customers, and

adequate supply of natural

have been

we

our

in Canada to the California market. The

somewhat from

expectations.
was a

importance to

transport natural

patterns, increase

earnings

»

growth and development of

ice area, is an

in the Company's his¬

sales

plant to be

cus¬

electric generation, requiring us to make up that

gas

$

Electricity to Customers (KWH)

Sales of Gas to Customers

$

$

\t

,

.........

Other Expenses and

.

normal

and reduce

Pitts¬

Company is continuing its activity in the
field. It plans to start construction

Of immense

a

our

one

located in the northwestern part of its
system,
near Eureka.

to

•

its operations. The net result

our

expenses,

Sales of

The

to the future
no

electric generating resources will

nuclear power

stockholders.

HIGHLIGHTS

our

a large
The next major in¬

program.

of which will be placed in
operation in 1960 and the other in 1961.

the investment quality of the Company's

preserve

in 1959, due to completion in the

of two steam units and of

burg Power Plant,

its system in

tory did climatic conditions have such

Total Assets

crements to

large additions to its plant. This growth will
a

year

be two 325,000 kilowatt steam units at

Company must continue to

continue to be financed in

resources

hydro construction

increasing demand for the

ever

the decade ahead, the

Perhaps in

•

erating

which lie ahead hold

years

REPORT-1959
previous

and fuel the Company supplies.

power

make

Company is the Nation's largest gas
operating utility from the standpoint

our

now

ANNUAL

Sixties. Ahead is another decade of opportunity
and challenge. By any measurement—population

which

expenditure for plant and facilities

an

this ten-year

Today

agriculture all combined to

for

54th

CALIFORNIA

dynamic company write K. C. Christensen, Vice President and Treasurer, 245 Market St., San Francisco 6, for P. G. and E.'s 1959 Annual Report

strength

18

and

Corporate Advisers

in

what proper

Silberman
a

he

electronics

explains various
the

tion

investment

business

determining differences
a

As

important as tunnel diodes,
parametric
amplifiers,
electrostrictive hydrodynamics, and other

amount

between an ordinary

in

advances

;

the

growth of

our

industry

in

to

the

electronics

our

tech¬

60's,

tal be of

paying

Outlines

chartered

so,

tal.

to

on

"secured

more

The

lack

by

bank

important

role.

comments

commercial

discuss

the

electronics in¬

I

be¬

lieve it is im¬

portant to

Richard T. Silberman

es¬

tablish the perspective from which
the problem is approached. Our

viewpoint and posture have been
created from

experiences
not

staff's combined

our

electronics indus¬
positions. This is

in

operating

try

approach based

an

on

this

capital.

on

a

mistakes which,

of

experience.
frequently of

reper¬

in total,

I

represent
minded

clearly,

More

concept is based

toire

on

be

must

the

interested

not

the
from

'

to

Fast

Rising

Stock

the

Unfortunately, by the
stock

gets

to

$15,

the

Accounts
and

factoring

able

when

financing

is

frequently mis¬
understood and can be quite valu¬

in

1954

loan

re¬

management.

on

that

man

believes

the

profit

a

should

company

performance

pro¬

Basically,

ex¬

problems

in

distribution,

combined

with

the

short-term market interest of the

underwriters,
ket

have

situations

created

which

mar¬

generally

cannot

be justified on the actual
capital proceeds to the com¬
pany.
Public underwritings are

net

ideal
is

when

good

justified

and

where

percentage of the
sold

market

support

small

a

be

company can

the public to enhance or
consolidate it at the second and
fo

third

stages of growth.

In

Inter-business

order

banking
pany,
I

for

to

financing,

trade
delayed

resort."

last

of

capital must:

Maintain the founders' op¬
erating position.
(1)

■

(2) Maximize the growth of the
estates through the es¬

vary

from 10%

high

as

instances

11%

financing

business

abnormal increase in

tablishment of sound public mar¬
kets.

erally

'

.

..

.

proves

Difficulties
when

used

level of the electronics company's

growth.

.

requirements so that the com¬
pany's management can plan on
the

basis

of

solid

a

financial

foundation.

in

vantage of the electronics com¬
pany's
"time
and
technical

together

It

is

important

to

bring the
capital into
context by viewing these sources
in the light of their activities in
sources

of

the

past decade. Such a look is
important in view of the fact
that the public interest in elec¬
very

tronics
the

last

securities,
few

particularly in
has disillu¬

years,

sioned many managers. Frequent¬

of

financing
business

financing

by

to

dentists,
and
mer¬
private groups brought

investment banking
houses on a special situation basis.
The
private group is generally
organized for one investment and
does

not

by

provide

an

risks involved in

providing equity

capital in special situations, many
others have actually strived for
significant short-term gains which

have, not been possible; and, fre¬
quently, when additional funds
needed

can

justify

market value of their stock

writing, the bankers

true

value

of

their company.

In




institutional

relationship. While many private
groups have truly understood the

are

the

private,

doctors,

chants

ly, they have found themselves
mistakenly
taking
the
public
as

is
for

groups
has been very
popular during the last few years.
These vary from the local groups
of

present

encountered

non-bank

(4) Provide an over-all indus¬
try perspective to take full ad¬

leadership."

an

be

low-profit

Equity

for

sales, it gen¬
satisfactory.

type

.

used
handle

quite

can

this

Provide financial policy,
advice, and capital geared to the
(3)

is.
to

or

founders'

-

simple to
in certain

factoring. If accounts

on

receivable
seasonal

or

25% to 30%

as

before
a

the

company

good public under¬

1957-1958

backs.
that

lunch."

The

real

costs

"out

to

in private

stretchouts
suppose

the

credit

suppliers
a

term

credit

it

and

is

-

all

of

simultaneously

balance sheet

the short-

on

extension

total capital

cut¬

fortunate

managers

don't

draw

the

versus

of their customers,

v.-

Of course, in this same category,

occasionally

have found

we

panies

that

have

license

and

borrowed

taxes—a

not

taken

com¬

broad

on

their

practice, at least for

extended
been

ernment

any

period of time, that has
very satisfactory. Gov¬
progress

quite

In

for

vestment

the

Small

Act

was

Government

contracts

been frequently

as

a

long-term

investment

early to record history, I, for one,
confident that

it will

come

to

business
other

category

than

of

segment

our

in

any

economy,

and banks

specifically designed to

the

of

needs

of our

this

vibrant section

free

enterprise system
profound effect on

have

can

a
the
continued stimulation and growth
of our system in general.

companies. The small busi¬
investment
companies can
provide long-term capital for pri¬
ness

vately held companies whose total
assets

not

are

than

more

$5,000,-

000, whose profits have averaged
less than $150,000 net after taxes
for
the Jpast
three
years,
and
which

classed as private com¬
that is, having less than
100 public stockholders. Even on
are

panies;

these points the law is
quite flex¬
ible
and
the
Administration is
empowered
to
provide waivers.
This is not a direct

Government

private enterprise capital
banking.
Government does not inter¬
fere

with

the

by

been

of

some

small

business

these

companies,

outstanding ex¬
amples of how, even in the elec¬
tronics industry, this has been a
very useful source. Unfortunately,
profits are not always sufficient

investment companies to
sup¬
ply capital through the purchase

to

of

provide

ment at

a

company

state

of

orderly .develop¬
pace that will allow the
to keep abreast of the

the

an

operates
law

on

a

but

review

provides for

the

merely

basis.
small

The
busi-

One,

an

of

might be established.
would

course,

the

be

liquidating value. Bricks, mortars,
and buildings, which, as some who
foreclosed

electronics

on

have

found

jpeople who put it there in the
^place. :
'
At

small

vertible

business

company

debentures

long-term
debentures

loans.

and

The

con¬

through

loans

and

are

the

other

there;: is

end

of

the

line,

public

value, a value
which an underwriter might
place
on
the company for
purposes of
selling a small percentage — 5%
or
10%—to the public.
In

between these two I

there is

tage

believe

"time-technical advan¬

a

value,"

that

fair

.market

value which takes into considera¬

tion

the technical leadership, the
products, the sales image, the
momentum, and the human values

in

a

that

company

difference

are

between

investment

always the

ordinary

an

and

great

a

investment.
The
not

establishment

by

more

any

means

specifically,

values

of

is

science, but

a

art.

an

The

important point to be realized by
both parties is that there are no
magic
equity: percentages.
The
major consideration to the key

personnel

is

the

appreciation of
can

be made

absolute

their

dollar

estates

that

possible through the

timely presence of sympathetic
capital. To the investor the major
issue

is

the

investment

appreciation

that

in

his

obtained

be

can

through the operational use of this
growth catalyst — money — when
combined with advanced human
technical

and

Frequently,
blanche

management

unless

we

have

we

never

give

pany

for

hear

you

that

company, and,
up

will

not

skills.:
carte:
invest

control

of

the

conversely,

we

will

control of

our com¬

money. Generally, the
two parties that make such state¬

ments and act accordingly are the
ones that end
up keeping control
of their

company, small as it may

be, and the investors having, all
of their

money in the bank

phlegmatically compounding interest.
One

nes

art and its competi¬
required by law
particularly so where to be of five-year minimum ma¬
company is striving to develop turity.
is proprietary product line and for.
Specialized small business in¬
a good reason is
striving to min¬ vestment companies, like Elec¬
tors. This is

of

banks. There are, of course, many, •■first
many more businesses in the small

alsov The

source

question,

value

out, are
land banks; the second, home loan
pretty low, particularly when they
banks;
the
third,
commercial tried to use or sell the inventory
banking as we know it today; and ; or work-in-process without the
the
fourth,
the
small
business

have

classic

which values
•

companies

being- the

real

be converted. There

can

have

first

the

up

the

probably at least three dif¬
ferent
times- in
a
company
at

ing

system—the

Electronics

are

be recognized as the fourth bank¬

part of

employed.

(

brings
is

bentures

in

small business. While it is still too

operation of the
investment com¬
panies and does not require prior
approval of the investments made

the

non¬

,

key to the convertible debenture
negotiation is always the percent¬
age of equity into which the de¬

Business In¬

capital in most industries has been
expansion
from
profits.
There

Finally,

straight, loan

a

electronics company?" because the

equity

loan program; it is the
ultimate in

have

This
"What

incentives in order to attract pri¬

am

basis, subse¬
is generally

Company's Value

passed. This
important tax

provides very

vate,

on

basis.

Determining

'

1958

Act

long-term

and

payments

special considerations

a

are

I

equity

This

an

sympathetic equity

provided

I feel, has also been
successful and experience

extensions, or ordinary
provide
capital
a definition between the two..Ac¬
payments on accounts receivable
Small Business Investment
electronics com¬ counts receivable
financing in¬ have
provided
a
tremendous
Companies
believe you must have volves
borrowing against receiv¬ source of
capital to the electronics
executives that have gone through
Under the Small Business In¬
ables,
either
by
a
direct
the
industry.
There
are
many
esti¬
problems of over-runs, low
vestment Act the Small Business
assignment of individual receiv¬ mates of the actual
capital sup¬ Administration
bids, winning production contracts ables or where the
grants licenses to
company has
plied in this way, but I have heard
to build equipment to competitor
qualified small business invest¬
a good
collection experience, as¬ it
frequently said that the short- ment
specifications (which even they
companies. These companies
signing
groups
of
receivables. term credit
extensions
of
elec¬
haven't achieved), .and trying to
by law are required to be true
Banks or receivable specialists in
tronics
meet
this Friday's
companies
in
Southern long-term investors.
payroll with
this manner will
Ideally, the
grant 75% to California alone has
next Monday's receivables. If one
ranged from Small Business
Investment Com¬
80% loans against the face amount
three to four times the total paidis to be a true long-term investor,
pany obtains its capital from pub¬
or
receivables. Factoring, on the
in capital and earned surplus of
it is my belief that a technical or
lic
sources.
The
Government
other hand, involves the sale of
these firms. In an expanding busi¬
industry-oriented
approach
can
stands ready, if receivables at a discount to a fac¬
necessary under
ness environment, this has gener¬
be more valuable than a pure sta¬
certain conditions, to match funds
tor, who, in turn, collects the re¬
tistical analysis.
ally worked out all right. How¬ with the. small
business invest¬
ceivable from the customer. Rates
ever,
most of us remember ;the ment
f A
new
source
of
long-term,
;

debenture

financing

quent

Admin¬

program,

buys the stock at

share has high expectations

a

vertible

program

Business

investment

provide secured loans

"lender

as

capital.

properly applied. First
it is important to establish

of all,

RFC

Small

den

pansion.

or

the

the

businesses

such issues have been that the thin

organiza¬

receivable

placed

business

that is really interested
in its client company's long-term
growth is naturally interested in
capital appreciation and not
short-term profits. Once a rela¬
tionship is established on a con¬

lent to small

were

Congress

on

The

and
can
use
its
and experience to obtain

small

The

be learned from review¬

businesses.

basis.

company

history of its activities.
this program many mil¬

stock rise has created quite a bur¬

to
this market
price
when, in fact, management only
had $1 per share proceeds to de¬

secured

contro¬

will prooend, but I feel a great

gained in administering it clearly
developed the need among small

happy.

broad

istration legislation which allowed

portional

receiv¬

history of profitable performance
and can generally be considered
in a secondary financing domain.

Under

assist

public underwritings when
public support is justified.

good

RFC

be

and

position
against

record"

the

The

business.

regarding

the SBA to

The

in

"track

a

small

Frequently, these issues come
out at $1, quickly rise to $4 or $5
a share;
and, on a public market
value, management really should
time

providing
accomodations
of
less
than
$1,000,000
and
seldom
go
below
$500,000. The insurance company
is principally interested in longwith

mistakes,
people

of

Cost

an

Insurance companies are gener¬

ally

for

versy

can

capital
banker becomes a buffer between
the company
and the .public
underwriters

lions of dollars

:

velop such profit growth and

commitments

smartest

Wall Street.".

on

these "Reg

expensive when

very

subordinated

a

resources

first, of course, was
the RFC program enacted in 1932
which provided long-term capital

with

basis.

the

have learned by our

we

a

contracts,
some other

tions

slogan of a
less fortunate brokerage firm: "If
we

or

in

except

term

annual

describes

ables,

not

funds

re¬

parody of the
New York investment community
which

is

bank

dis¬

for

considered.

are

mercial

provide

issue

The cost in
be

can

have

tq

entire

with

years

It

in developing
good commercial bank accomoda¬
tions
by virtue
of the
SIBC's
company

business. The

ing

the

the

interests.

small

special legislation to support small

never

$15

Government

Congress has provided the
administrative branch of the Gov¬
through

investment company be¬

long-term investment of funds

The

can

buy

Small Business Aid

Government

long-term

a

partner with parallel and

a

identical

attraction to many.

ernment

than

less

or

dis¬

the

result

is

options, warrants, and other costs

of

of the

am

one

cartoons in "the Wall Street Jour¬

nal"—the

plays
about

bankers

the

ably

companies—at least in the early
stages of their development —
have significant assets, the com¬

know¬

ing exactly what to do for opti¬
mum
sales and profit return on
invested

fact"

of

the built-in insurance has been an

comes

as

:

dustry. They provide

business

deal

tribution.

understanding of their
true
purpose
rather than from
lack
of
support that the banks
provide.
Since
few
electronics
a

bank¬

dustry,

lack

Most

issue

the

a

availability of commercial bank¬
ing support for Government con¬
tract assignments, and, in essence,

to

A's"

not

are

in

of

4

the underwriter agrees in advance

of need" basis.

commercial

paraging

one

for

and

"secured

a

significance.

ing

vendors

provide equity capi¬
provide
short-term

They

funds

casual

capital

bal¬

banks

Before
can

could

bank

Sources of Capital

Commercial

too, will sym¬
pathetic capi¬
than

for

ances

prices

into

payrolls.

will

nology
be

stock

converted

be

known

brought to market through the
"Reg A" in the past several years.
These are usually performed on a
best efforts* basis, as
contrasted
to a firm underwriting, wherein

instances it has turned out
quoted

tnac

not

task to many new elec¬
companies.
The
ready

planning for orderly growth and
development possible. The small

been

has

contracts

priority

regula¬

a

Act

$300,000. A large number of elec¬
tronics
companies
have
been

great investment,
many

'33

A"

r

investment and

issued

has

the

pro¬

financial relationship which makes

or

tronics

Exchange

Regulation A. The so-called "Reg
underwritings are exempt from
certain filing provisions where the

Mr.

work,

companies

under

and

Corporation,

first-

-

of capital available, including

sources

small

how

on

discusses

Commission

of

management

companies, the author outlines

financing can do for growth company progenitors.

down

run

and

marketing and financial

technical

medium-size

Securities

Capital

vide a source of capital with a
technical understanding of the in¬

CPFF

soned.

The

and

the com¬

underwritings of less than
$1,000,000
are
generally
quite
costly, and it is difficult to obtain
a group of first-line underwriters
unless the company is highly sea¬

Capital Corp., San Diego, Calif., and President,

Experienced

by

taken into consideration.

tronics

support of its R & D
programs. One can see in retro¬
spect why securing Government
sorship

Public

By Richard T. Silberman, Executive Vice-President, Electronics
Electronics

borne

expenses

pany are

Thursday, April 28, 1960

...

Government contract spon¬

imize

underwritings
are
sometimes
quite high when options, warrants,

Helpful Equity Financing
For Electronics Companies

small-

Chronicle

The Commercial and Financial

(1842)

only has to cast about this

industry

to

axiom

was

people

and

know
ever

the

if

the

that

the

that

true

management

are

the
key to a
small
company's
growth and development, it surely
is the law in our field.
Manage¬
ment

has no greater control over
destiny than its own abilities
and, more importantly, its pres¬
ence. If you will
forgive the pun,

its

Volume

Number 5946

191

there have been enough "shock¬
ing" transistor companies formed
recently in the California Bay
to

area

the

that

prove

percentage

management
ment

is

of

equity that
have, manage¬
will always be in

and

control

regardless

of

may

of

small

tailored

programs
technical needs

the

of

the

to

elec¬

tronics industry will play an everincreasing role in the 60's. Com¬

petition for contracts, orders, and
brains
has
never
been
greater.
Sympathetic
long-term capital,

knowledgeable
the

5

industry,

in

the

be

can

an

pitfalls of
important

share had

billionth
The

Exchange
opposition to

in

Capital

The Commercial and Financial Chronicle

.

financial

the

pos¬

mately

lead

public
their

to

market
estates.

the

vigor

of

the

panies

in

the

Keith

management

decade

York

ther
the

President of the
Exchange, has

that

expansion

of the

to fur¬

He also dis¬

closed

that

a

electronic

quotation
vice

has

de¬
been

for

approved
use

in member

firm offices.
In his

for

the

with

Fulton,
Co., Inc., Union Commerce

Reid &

ter of 1959.

previously with Green, Erb & Co.

*.

Exchange. Mr. Maurer

was

ston

that

is

it

the

of

one

be

ten

and

pending

balance
added

funds.

independent broadcasting
organizations in the United States

of

to
'

in

of

terms
also

vertising
western

broadcasting

conducts

business
states

Kleiser

and

an

the

acquisitions.

general

in

far

four

through its Foster

Division

which

business

from

offices

Corporation

cent

was

equally good in sales and earnings for

tinued its

outstanding growth. Earnings

million—about 30 per cent greater

million.

million,

-

a

50 per

ownership. The Chemstrand Corporation

Earnings from American Viscose's own operations
were $15.2 million or $2.98 per share, over double
the 1958 earnings of $6.9 million ($1.36 per share).
Both years include a Chemstrand dividend equal,
after taxes, to $.45 per share. Sales increased about
ten per cent, from $217 million in 1958 to $240
Y

IN STRONG

PRODUCTS

that

Sales

$197 million,

were

Ketchikan

con¬

$24.1

than in 1958.

from $173 million.

Pulp Company made significant gains.

Its earnings were $3.1
times the

up

were

previous

million, two and one-half
Sales amounted to $28.8

year.

compared with $21.9 million for 1958.

of

forward

expanded

to

facilities

the
—

"architectural
decision

has

aid

to

rayon

cord
on

buildihg with¬

are

and

again standard equipment

1960 model automobiles.

in the next few years."
The 20 Broad Street
building

is
the three-year-old skyscraper ad¬
joining the Exchange, where Bond
and

Exhibit

Hall

AVRON

MAKES

DEBUT_ Avron, a high
rayon staple, is considered
a most significant development in the
apparel field because of its superior

leased. The Exchange has an
option to enlarge the trading floor

now

there.

The building was
specially
constructed to allow for expansion
of the trading floor.
Mr. Funston also said

that

the

"imaginative" Downtown Manhat¬
tan Association

plan for

a new

Their future is bright. Especially engineered fibers for non-woven
fabrics have strongly penetrated the

iPiS

ucts markets.

year.

industrial

filter

and

DIVERSIFICATION AND

surgical prod-

EXPANSION

strength

is

space

during the

II
j^ij
$yl|

Er«gm —Yarnsand fibers for industrial pur-

shipped to the textile
yarn

doubled in sales

poses

and acetate fibers

industry. Tires with Tyrex

ing floor should be extended into
the 20 Broad Street

INDUSTRIAL USES OF FIBER ZOOMING

cellophane in its history. Larger

and yarns were

author¬

studies

of

quantities of

for

need

whether the trad¬

on

DEMAND _The

corporation sold the greatest volume

Keith Funston

1

CONTINUE—AviSun Corporation

Hi

affinity for color, increased
tensile strength and soft, luxurious

drape,

hand.

n

The

most

fiber

versatile

association
for

with

a

fifty

Sun

Oil

per

cent

Company

research, production and sales in

petrochemical products. Expansion and

diversification, whenever opportuni¬
themselves, will continue.

H\

or

natural fibers.

change building in a redevelop¬
project at the foot of Wall

organized in

was

to

date: it blends with all man-made

Ex¬

ties present

ment

Street

also

"merits

careful

con¬

COTRON RINGS UP SUCCESSFUL YEAR

sideration."
The

quotation device

new

attached

can

be

—Cotron fabrics, which are

to

the Exchange's ticker
circuits and its electronic
memory

cotton and Avisco rayon

pleted

ted

market. They

over

the ticker network. When

alphabetical keys corresponding to
a
stock's symbol are pressed, the
device prints its own tape with
the last sale or sequence of sales

<

was

ters

on

doubled in the 3rd and 4th quar¬

that

apparel plus

home furnishings.

over

December

by approximately 26,200 shareowners.

the issue.

in

Mr/ Funston

development
the

latest

took

note

of

the

in

connection with
automation step taken

by the Exchange itself—the addi¬
of

tion

48

stocks

to

the

252

ready been given automatically by
the Exchange's telephone quota¬
tion

service.

About

half

of

Here Is how 1959

for

which recorded quotations had al¬

LOOK TO AVISCO® FOR NEW IDEAS

The

Exchange has

won

Art

its

26-week

radio

series

of

of Investing."

A
were

total

AVISCO

of

212.4

million

shares




quar¬

$239,800,000

Earnings

Earnings

1

with 1958:
1958

$217,000,000

15,200.000(a)

6.900.000(a)

2.98(a)

1.36(a)

1.50

Net

AMERICAN

VISCOSE

Philadelphia 3, Pennsylvania

•

1.50

Equity in Chemstrand and Ketchikan
Earnings

/ $ 13,600,000

•

Per American Viscose Share

Associated

newly listed during the

Net Sales

Net

its fourth

broadcasts, "The

comparison

Dividends Paid

Washington Gold Medal
leadership in economic educa¬

half-hour

in

Per Share

George

tion— for

up

1959

Net

the

Freedoms Foundation Award—the
for

shaped

Fibersand Packaging Films

telephone quotes are now given
automatically.
Other
highlights of the first
quarter report include:

.

paid divi¬

paid in the first half.
31, 1959, there were
5,118,434 shares outstanding, owned

At

cally received in the trade for men's,
women's and children's

1959_During

dends of $7.6 million. The dividend

com¬

the

year

DURING

the year, American Viscose

have been enthusiasti¬

their first full

records each transaction transmit¬

DIVIDENDS PAID

blends of

fibers,

CORPORATION
New York 1, New York

Combined Earnings of American Viscose and equity
in earnings of Chemstrand and Ketchikan
(a) Includes Chemslrand dividend amounting to $2,305,000

or

Corp.

'Tyrex is the collective trademark of Tyrex Inc. for tire

$

9,800,000

2.65

1.92

$5.18

$2.83

$.45 per share after income taxes.

Companies (50% owned):

Chemstrand Corp. • Ketchikan Puip Co. • AviSun

•

:

1 •

Security

White Plains Road.

was

companies in which American Viscose has

•"

corporate

,,.

BRONX, N. Y.—Investors Security
Corp. is engaging in a securities

Business

earnings of American Viscose Corporation
equity in those of 50 per cent owned
companies in 1959 were $5.18 per share compared
with $2.83 per share in 1958.

a

proceeds will

Form Investors

revenue

outdoor ad¬

and

its

repay

largest

The net

•

Room

The

of

Board

ized

lieves

American Viscose

Governors—

looking

recent

be¬

first

said

the

from

Broadcasting

offering

to

temporary bank loan incurred to
provide part of the funds for the

at

April 1, 1960.

and

Building, members of the Midwest

interest

$5,000,000

;

1960, Mr. Fun¬

a

Gary R. Smith have

associated

accrued

of

report

quarter

in

Wilvert V.

growth in
sixties.

new

—

extent

Reports

Stock

anonunced

eye

3

Ohio

priced

were

the

ahead.

trading floor is being studied with
an

and

and

from

debentures will be used to the

Expansion

Funston,

New

CLEVELAND,

Net proceeds from
of

subordinated debentures due 1975.

Metropolitan

Stock

NYSE Studies
1960

and
sold
$6,000,000
of
Metropolitan Broadcasting Corp.
(New York, N. Y.) 6% convertible

(Special to The Financial Chronicle)

from 3.8 million in the first quar¬
,

offered

of

profound effect on
of electronics com¬

a

growth

Fulton, Reid

1960

largest outdoor advertising com¬
pany in the United States and the
largest in the four states (Cali¬
fornia, Oregon, Washington and
Arizona) in which it operates.

underwriting group headed by
Kuhn, Loeb & Co. and Carl M.
Loeb, Rhoades & Co. on April 22

engineering

Money

technical

have

was

Debens. Sold

debentures

1,

W. R. Grace & Co. Foster & Klei¬
ser
is believed to be the second

An

The

become

volume

less

March

on

19

maximum

appreciation

which maintains the initiative and
will

taxes

Maurer

acquired

Met. B'dcast

100%

108,500 persons visited
Exchange
during
the
first

daily

more

decrease in member

Two With

-.'a-/

Average

reve¬

1959.

and inter¬

million shares, down from 3.1 mil¬
lion in the previous quarter and

increased

However, net revenues
were
$350,000, about
than in last year's
first quarter, due to increased ex¬
penditures, principally for salary
and
wage adjustments made in

A record

the

a

1959.

$100,000

munity and the Treasury Depart¬
an .educational campaign
aimed at voluntary declaration of

technique of bridging capital that
I have described provides man¬
with

of

after

ment in

est.

of

listing fees (which

charges based on a lower trading
volume),
gross
revenues
were
greater than for the first quarter

withholding tax on dividends and
cooperated with the business com¬

income from dividends

(1843)

result

a

from

than offset

listed.

been

three months of the year.

ture for patience which will ulti¬

nues

went on record
proposals for a

partner for growth company pro¬
genitors in the decade ahead. The

agement

As

ter, including those of 14 compa¬
nies admitted to Big Board trad¬
ing
for
the
first
time.
The
Exchange list passed the six bil¬
lion-share mark on Feb. 24, a 20%
growth in the 14 months since the

electronics

companies.

.

.

yarn and cord.

rs

at

2145

20

Another Far East branch of Bank

NEWS ABOUT '

of

New Of fleet, etc.

•

.

Thursday, April 28, 1960

.

April

Our'Reporter

on

in

25

announced.

Revised Capitalizationt

•

»r»

.

.

Naha,
capital city of Okinawa, Ryukyu
Islands, President S. Clark Beise
It

New Branches

•

f'ritf

■

America, San Francisco, Calif.,

opened

BANKS AND BANKERS
Contolidatlont

Chronicle

The Commercial and Financial

(1844)

will

be

Wharton,

headed

veteran

-

by

W.

Guy

tv

CHIPPENDALE, JR.

of

Bank

at

by JOHN

.with

banker

sourid ..experience

America^branches in the Orient.
'

The

of

Bank

Montreal, Montreal,

Canada, has announced two
utive

appointments

office.

James

M.

Assistant General

head

Senior

the

|

.

,,

„

and

15."

1

*

title

*

J.

Miller

has

the

operating
National

Company,

been

department
Bank

and

Pittsburgh,

Miller

Mr.

branch from

career

Bank

'57,

started

Pa.,

1921.

He

becomes

Bank in

National became
lon

of

his

National Bank
March

Trust

and

the bank. Wal¬

In

ter

appointed Assistant Cashier.

Hotson,

Robert

Manager since

J.

M.

Assistant

General

Manager and will continue
responsible

for

all

to

personnel

be
as¬

pects of the bank's operations.
Mr.

Jackson

has

served

sively at the bank's
Western

branches

*

in

chants

City,

gan

common

000 to

On completion of two
Manager of the main

branch

in

1957,

he

moved

to Vancouver as Assistant
General Manager in charge of the
bank's British Columbia division.

This

the post he left to return
to
Montreal as Senior Assistant
General Manager lastr*,September.
was

*

*

*

Frederick W.

'

*

Vice-President of

the

former

a

Chase

Na¬

tional Bank, New York, died April
Mr.
Gehle
joined
the
old

24.

Mechanics
Bank

in

and

1916

Metals

and became

ager

in 1922 and
ond

a

with

Bank

the

Man¬

Vice-President

appointed

was

Vice-President

National

National

Publicity

as

the

of

after

Mechanics

its

a

Sec¬

Chase
merger

Metals

&

in

1926, becoming Vice-President in
Charge of the Public Relations
and Business

Development Depts.

*

Paul

A.

*

*

Kemmerer

has

Bank

New

York

ap¬

Trust

Company,

New York, it was announced Apr.
28

by Chairman Harold H. Helm.

Mr.

Kemmerer

bank's

30

is

Broad

63,000,

located

Street

office.

Managers of the

promoted, Mr. Helm
They are: Carl
R. Palmer and Henry L.
Pittman,
who are appointed Assistant
Treasurers, and. Robert L. Mcannounced.

Mahon
mann,

John

and

George

who

C.

are

named

*

*

Schnee-

Managers.

*

M.

Robert, Vice-President
Secretary of Union Dime

and

Savings

Bank,
New
York,
elected a Trustee of

been

has
the

bank.
Mr.

Robert, who is in charge of

general operations and of person¬
nel, joined the staff in 1916. He
was
elected an Assistant Secre¬

tary in 1943 and an Assistant
Vice-President in 1949. In 1954 he
was

made

Auditor.

as

The

Farmers

National
New

York

capital

and

Bank

of

*

Hamilton, who has been
with the Chicago bank since 1946,
moves up from the post of assist¬
ant

auditor.

shares

outstanding 3,000,

value

$100.)

par

•

*

The First National Bank of Lewis-

ton, Lewiston, Maine has changed
its title to the First National Bank




died

on
April 10, was
April 26 by the bank's

mem¬

He

commenced his

banking

ca¬

with The Royal Bank of Can¬
ada in Oshawa, Ont., in 1912.
reer

ant
Manager of Montreal main
branch, being named Manager of
the

branch

same

ronto

as

ten

member

a

years

later.

transferred to To¬

was

of the

super¬

visor's department there and four

later moved to head office,

years

Montreal. He became
General
1944

the
recently
mohey falsing securi¬
in the process also of

new

is
trying to figure out what the
Treasury will offer to the owners
of

the

old

May 15th maturities.

method

given

were

Assistant

an

Manager of the
his

and

bank

appointment

in

as

will

retire

Trust

from

The

Northern

April 29 under the pro¬
visions of the bank's pension plan.
on

*

common

*

National

shadows

which

business

pattern.

'

was

Bank

of

determine whether

will

rates

decline,

Melville Shoe

•

Fort

Knox

1980 at 991/2%

and accrued inter¬

est, to yield 4.91% to maturity.
Proceeds

from

debentures

the

will

be

the

sale

used

of

the

is

charter

on

April 8. The President is Thomas
J. Howard

and

McEntee. The
of

$200,000
$300,000.

the cashier Ducat

bank

and

has

capital
surplus
of

a

for

the

who

and

for

other

corporate purposes.

general

which
held

A

sinking fund starting in 1963
designed to retire at least 85%

of

the

debentures

prior

to

debentures

a

of

*

*

three

names

with

and

of

common

The

stock

Guilford

of

$2,875,000;

National

Bank

chains

sales

System

Carolina, with common stock of
$1,000,000 consolidated effective
as
of April 8. The consolidation

Ward

was

effected
title

under

the

charter

of

"Security National
Bank of Greensboro," with
capi¬
tal
stocik of $3,875,000, divided
into
775,000 shares of common
stock of the par value of
$5 each.
*

Florida

*

*

National

Bank

at

- Locka,
Apa - Locka,
Dade
County, Florida was issued a

on

April

13.

has

C.

The

Presi¬

Doll and

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

the

bank

and

a

It

shares

outstanding

3,500,

under

the

trade

made

1959.

Over

96%

through

The

first

of

those
John

opened in 1896,
Thorn
McAn
store
in
the first Miles store in
was

1924. The company also sells shoes
other
companies
for
resale
their

private

and distributes

in

the

would

shoes

brand

some

in

names

of its brand-

several

present

offer

obligations since the
could

be

tailored

those

buyers of the
funding securities.
The

the

issues

who

new

re¬

of

way

taking

refundings would be
future

but

definite

would

there

about

be

in

in

the

nothing
not

or

the

of

care

used

was

whether

used

May

it

15th

venture. However, it appears as
though the Treasury, based upon
published reports, will give noti¬

for

the

handling

new

of

re¬

fundings is to be used.

well

as

through

many of the stores of the company

subsidiaries.

cautious

1959

compared with

were
$6,164,138,
$5,493,639 a year

attitude

which

the

in

the

par

BROOKLYN,
Bernstein
are

ness

Z

N.

and

engaging in
from

securities.
would

be

no

a

Schleger,

securities busi¬

offices at 2965
name

Company.

Avenue

of M.

A.

present

of

areas

of five
In

years

open

Additionally there
attrition,

since

the

offering of new securities and the
complete
pay-off
of
the
issues
coming due, would do away with
the usual cash payouts of the
past.

Underwood, Neuhaus
Names
HOUSTON, Tex.

Reg.
—

Reps.

Underwood,

Neuhaus

& Co., Inc., 724 Travis
Street, members of the New York

Exchange, have

Matthew

A.

P.

announced

Schumacher

and James Harrison Neuhaus have
been
certified
registered
repre¬

sentatives.
Both have been associated since
with the 53-year-old invest¬

1959

ment

banking firm, Texas' oldest.

Mr. Neuhaus is the

Hugo
the

V.

son

Neuhaus

in 1907.

company

of the late

who

founded

;

-

Thomas Smith Joins

Kidder, Peabody Co.

,

FRANCISCO,

Thomas Smith has joined
vestment firm

Califthe in¬

of

Reynolds & Co.,
Montgomery Street, as Sales
Manager, James L. Murphy, resi¬
dent partner, has announced..
425

Prior to his
served

tered

for

new

five

post, Mr. Smith

as a regis¬
representative with Francis

years

duPont, brokerage firm.

With H. M.

Byllesby

(Special to The Financial Chronicle)

CHICAGO, 111. — Arthur S.
Bowes, Jr. has joined the staff of
H. M. Byllesby and Company, In¬
corporated, 135 South La Salle
Street, members of the Midwest
Stock

Exchange. Mr. Bowes
with Cruttenden,

was

previously

Po-

Specialists in

y

that

other

less.

or

words, the

long-term

sector of the Government market
is not likely to be used in
this

instance

though

evep

had

been

the

Treasury's

term
ever

heard

some

the

desire

would

U. S. GOVERNMENT
-

■

and

.

y

,

//y.y

federal agency

Securities

talk

past that
extend

to

result

in longbeing offered when¬

issues
it

in

was

possible to do so. It
believed that token amounts

would be

quite acceptable. How¬
after the recent new money

raising debacle of the Treasury, it
is not likely that a
long-term bond
will

be

used

the May 15th

in

connection

with

refunding.
Refunding

Aubrey G. Lanston

will

as

to

what

offer

in the way of an issue
or issues to
provide the means in
which the middle of next
month's

maturities
best

are

taken

informed

money

market

care

& Co.

Terms

the various
the Treasury

are

of.

followers of
believe that

The
the

the

to

Government

will be confined to maturities

sues

guesses

.Sheldon

—

Stanley

under the firm

Peters and

Y.

the

of

buyers

money

issues

new

As usual ,there

Form M. A. Peters Co.

cater

desta & Co.

market, particularly in the

ever,

Net earnings of the
company,
adjusted for deferred taxes, for

to

maturing issues

-This uncertainty as to how the
Treasury would operate in the
May
15th
refunding created a

was

as

demands
market

I.

Treasury had indicated that

new

had

new

in the past, but could have
used
obligations that would meet the

offerings

new

for

be

plant accounts

year

to

appeal directly to the
owners
of the maturing

foreign
3 tee1 to e industrial
safety shoes are sold directly to
countries.

the

have

operation

have
of the

the

Treasury

as

SAN

impending

not

maturities

and

in¬

thought that the Treas¬

was

Prospective

increased from $250,000 to
$350,000 effective April 11.
(Number
value $100.)

States. There

to

name

Treasury

and

vestment accounts.

system

/McAn,'Miles"

Ward."

store

under

Re¬

might be involved in the refund¬
ing could fall. It has been the
opinion of most money market
specialists that the refunding is¬

in

and

are

Federal

stores

"Thorn

first

1922

May 15th

if
the

used,

owners

go

-

refunding,

earlier.

By a stock dividend the common
capital stock of the First National
Bank of
Bozeman, Montana was

of

the

on

the

retailing divisions with

were

stores

of

in

"John

Greensboro, Greensboro, North

and

of

Gov¬

and

at

of

few

a

104%%

The company retails and is one
the largest manufacturers of

are

not

fication ahead of time if the

decreasing prices thereafter. Sink¬
ing
fund
redemptions will 5 be
made at par, plus accrued interest.

Security National Bank of Greens¬
boro, Greensboro, North Carolina,
and

otherwise

are

-

a

due

come

outside

serve

would

-

Federal

interested in

are

that would

pansion

the

this

Stock

markets
at
standstill since

that

the

that

obligations have retired
temporarily to^he sidelines. All
but approximately $400 million of
the
$6,400,000,000
of
securities

to

shoes in the United
*

are,

ernment

ury

The

a

Debt

evident

of outstanding shortterm bank loans which amounted

repayment

National

issued

was

of Maturing

Treasury had
and capital

money

those

underwriting group headed by
Merrill Lynch, Pierce, Fenner &
Smith, Inc., on April 27 offered
$12,000,000 Melville Shoe Corp.
20-year
4"%%
debentures'
due

Bank, optionally redeemable at
Knox, Hardin County, Ken-, through April
14,
1961

tucky

they

Privately Held

it

An

Centralia,

*

where
higher.

go

pretty much of

■

*

not interest

or

stay

or

Bulk

of

increased from $150,-

*

overhang
the
The
level
of
activity
is
going
to

economic

a

maturity. The company may not
prior to April 15," 1965 redeem,
000 to $300,000 by a stock divi¬
other than for sinking fund
pur¬
dend effective April 13. (Number
poses, any debentures from or in
of shares outstanding
15,000, par anticipation of funds borrowed at
value $20.)
an interest cost of less than
4%%.
Illinois

not

place in the Government
are being attributed to the

market

4%%.,

as

would

rapid up and down swings
light volume which have been

maturity

might

high

as

were

The

taking

oqe-year

ir) tY\e

range and the other in the four
or
five year area. The rate

In

is

most,

likely use a
offerings, with one

,

plan V.

bankers and dealers.

on

will

combination of

the

The coming refunding operation

*

capital stock of The

rights

securities

Treasury
of them

The
;

obligations
to buy
the

evidently
going to be used in this operation.
The
Treasury was going to
abandon
the
procedure
in this
venture
but
changed its mind
after
holding
conferences with

Vice-President and election to the
board of directors followed in '55.

is
The

which

under

of the maturing

owners

appointed Assist¬

was

market, in addi¬

digesting

jto

.

Cashier, S, U. Mitchell. The

common

as

The

of

approximately $10,000,000 on
Mr. MacDonald joined the staff
April
21,
1960,
fbr • increased
of The Northern Trust in 1933. He
working capital required by ex¬

Poughkeepsie,
its

Walter

M.

ber of the board since 1955.
..

Mr.

charter

from

*

Donald

dent is Ernest J.

$200,000 to
$300,000 by a stock dividend ef¬
fective
April
11.
(Number
of

*

succeeds

Manufacturers

increased

stock,

He

MacDonald, auditor since 1952,
is retiring at the end of the

Apa

*

M.

President

Vice-President and

a

tion

directors. Mr. Walter has -refunding

board of
been

The Government

ties,

Debs. Offered

*

month after 28 years service with
The Northern Trust.

The

additional
*

$10.)

*

who

elected to

was

its

20 the election of Stuart Hamilton

post of recording
secretary of the board in 1959.

the

value

par

Secretary, and in 1956

Vice-President. He

increased

Northern
Trust
Company,
Chicago, Illinois, announced April

The

been

also

Michi¬

the

at

metropolitan division of the bank
have

of

of

-

:

*

The

Fort
Four Assistant

Indiana

*

Old

been

pointed Assistant Secretary, mort¬
gage loan department of Chemical

Bank

capital stock from $485,$630,000 effective April 15.
(Number of shares outstanding

J.

Gehle, 78,

stock the Mer¬

new

National

Vancouver.
Montreal

ap¬

*

*

By the sale of

years

as

been

partment of National City Bank,
Cleveland, Ohio, John S. Fangboner, President, announced,
April 20.

exten¬

Canada, including senior
Winnipeg, Calgary and

in

posts

has

who

announced

pointed Vice-President in charge
In 1942 he
of Operations in the Trust De¬

Jackson

November, '58,
an

Jordan

E.

*

and

In 1928 he

to

General

becomes

Co.

of 1958, Mr. Miller was

\

election

Muir

banking

office of Mel¬

15.

Royal Bank of Canada, Montreal,
Canada, succeeding the late James

Frank

joined Mellon

an

effective

Bank

floated

Chairman

when the Braddock

1947

Coast
*

The

of

Trust

with the Braddock National
in

uty

Dep¬
General

to

:'

Denton, Vice-Chairman of the
bank, announced.
' y

'5#

Assistant

ap¬

Vice-President

R.

main

the

The Bank of Belmont Shore, Long
Beach, California, has changed its

-

March

Montreal

A.

■

effec¬

'"

.

Assistant

Mellon

of

Manager

Auburn,

*

'*

William

and

until

}T

'■

,

in

Manager

tember

J

pointed

f

since last Sep-

Manager

^<1

Lewiston

tive April

exec¬

its

at

Jackson,

U

of

INCORPORATED
20 BROAD STREET

NEW YORK
,

☆

CHICAGO

☆

i

I

■

•

pi

:

☆

BOSTON

.

'

Volume

191

Number 5946

.

.

.

The Commercial and Financial Chronicle

the

Alaska Opens the
Door to Mutual '

United States

were

chartered

1816f !in Boston and • Phila¬
delphia. The institutions are con¬
centrated primarily in the New
England
and
Middle ~ Atlantic

,ii\

states, with

few banks scattered
through the Middle West and in

Head

of

Mutual

Savings

Banks

As¬

sociation hails passage of act permit¬

ting'chartering

of

mutual

the

a

Pacific Northwest.

-\

; The mutual savings bill was in¬
troduced intothe .Alaska House
;

savings '
of Representatives by Speaker of
marksV the •
the House Warren A. Taylor and
first
extension
of
savings
banks:
Major i t y • Leader - Peter - J.
geographic area in past 35 years.
Kalamarides \ and
was
passed
banks

in

Alaska.

This

The enactment of

tion

to

permit

enabling legisla¬

the

establishment

of mutual savings banks in Alaska
doubles
the
geographic * area
served

by

^

is

paid

to- depositors.

a

Hincks Bros.

serious shortage of long-term

for

housing

construction., Since
mutual

savings

proximately
long-term

and

banks

tion

have

Hincks

rators desiring to found a savings

possible,

bank

assistance

in the publicyinterest.

Bros.

member

A

Murray,

II

business

the

New

ent broker since he

Prior to

ployed
Rock

N.

:

by

A. M. Meadows

had

He

i 11

a

ties

business

from

offices

the

Association
Mutual

IN 1959, We learned

of

Exchange
was

Paragon Mutual Investor's Service
has

em¬

also

been

a

formed

been

West

33

York • Trap
West Nyack,

with

42nd

cus¬

Sav¬

ings

Banks,

and

President

The

Me¬

chanics

ings

'THE BOOMING

Farm¬

and

ers

Sav¬

Bank

PACIFIC NORTHWEST

of
John

Minneapolis,

deLaittre

Minn.

On

Friday, April 15, Governor
A. Egan signed into law

William

an act passed
by the first Alaska
Legislature during its recent sec¬
ond session. Mutual savings banks,

unlike

almost

institutions

other

all

in

the

Portland, largest cities in the Pacific Northwest, have the delightful

financial

States,
solely under state charters
and, at present, can be established
only by acts of individual state
legislatures.
Heretofore, 'I mutual
savings banks have existed in 17

Savings
model
bill prepared by the National As¬
Act,

sociation

of

based

on

City

the

iii

iiiOi

the

ings

banking, thereby encourag¬
the practice
of thrift
and

ing

benefits

the

promoting

mutual

to

In fact,

learned
for

an

a

lot of

new

things about

a

northwest

increasingly major role in America's

Washington and Oregon, and their neighboring states, are on the

develop

provisions of the law are
analogous j. to
those
governing
mutual savings banking in other

Long famed for natural resources, for scenery, for vitality, the

Pacific Northwest's growing
a

you're looking for

build

application, by the Department of

home

a

; were.

which

population and expanding

economy are

guarantee of future prosperity.
If

authorizes the

chartering of mutual banks, upon
Conditions

we

destined

economic future.

of

The

Commerce.

that' Seattle's

cooler than in Portland, Maine.

when El Paso Natural Gas Company began to serve this

wonderland

go.

measure

Seattle, Portland, Spokane, Tacoma,

Louisville, Kentucky. We didn't know

dynamic region,

economy."

states. The

in

summers were

sav¬

accumulation

investment

for

funds

the

of

than

erate

avail¬

able

Little Rock) with little snow?

or

V.xij

Savings-

legislature to make

in the

Olympia and other Pacific Northwest cities were not a surprise to usy
But we didn't know that Portland's winter weather wa$';mbre mod¬

Banks, states that "it is the intent
of

are

range? Or that annual precipitation in these

The facts about the climate of

a

Mutual

45°

to

booming economic centers is under 40 inches (less than New York

Mutual

Alaska

35°

moderate

states.
The

of 56° to 79°? Or that their winter temperatures

range

United

exist

Banking

know that the normal summer temperatures in Seattle and

Did you

And

—

a

major industrial site

—

or a

better place to

visit the Pacific Northwest. You'll be sold, just as we

you'll want to stay.

must be met before a charter may

financial

of

the expectation

include

be issued

of ; the

character

as

Federal
The

the

under

bank may

action

as

which would

one

major steps to assure energy supplies for the Pacific Northwest,

-

The

Paso's

deLaittre hailed the Alaska

Mr.

took

demands of California

Southwest, whose growth has paced the nation since World

War II.

as

which

with

furnished by El Paso Natural Gas Company. In 1959, El Paso

and the

the minimum capi¬
a mutual savings
be opened.

by Alaska

natural

gas,

and to continue to meet the mounting energy

Deposit Insurance
Act.
of $50,000 has been set

sum

tal

;

of the bank

bank

insured

an

Not the least of the Pacific Northwest's economic assets is

good

_

incorporators,

the qualification

and

the

success,

dynamic Pacific Northwest is featured in photographs in El
1959

Annual Report. El Paso's broadened service area

and

-plans for the future, outlined in this Annual Report, assure 11 West¬

be of

great benefit to the people of that
The Association
president

ern

states

the

dependable long-term

gas

supplies

so

necessary

to

state.

Alaska

visited

advise

to

the

on

;

sound and speedy economic growth. "

drafting of the law and to answer

questions about the operations of
mutual banking system.

the

"It

and

obtain

Alaska

for

SUMMER TEMPERATURE

busi¬

leaders

to
of mutual

the citizens

Alaska

state.

NORMAL TEMPERATURE AND PRECIPITATION, SELECTED CITIES IN PACIFIC

he

is

still

tice
our

ways

is., in

keeping

"business

56*-75*

36*-45*

PORTLAND:

58°-79*

35°-44°

SPOKANE:

57* 82*

20*-30*

14.92 inches

TACOMA:

55*-74"

34**44*

35.20 inches

/

31.92 inches
39.91 inches

with
OLYMPIA:

great American tradition."

"Also,"

ANNUAL PRECIPITATION

a

thrift

of

WINTER TEMPERATURE

SEATTLE:

in

pioneer state, and
the desire to encourage the prac¬

many

NORTHWEST*

eagerness

advantages

banking

their

of

of

government

the

savings

the

witness

enthusiasm

and
ness

gratifying,"

most

was

"to

said,

-

49°*76°

the establishment

of mutual

31°*43*

v.

45.74 inches

•Weather Bureau. U.S. Department

Mr.
deLaittre,
leaders recognize that
noted

of Commerce.

sav¬

ings banks in Alaska will help to
create the capital they so badly,
need."

..

This
in

35

was

years

graphical
mutual

the

to

area

first

served

the

by

the

system. The last enabling

passed

in

Oregon

in

1925.

The first mutual savings banks in




.COMPANY

geo¬

legislation authorizing the char¬
tering of mutual savings banks
was

EL PASO NATURAL 6AS

legislation

extend

*

For

Copies of El Paso's 1959 Annual Report,
Or Further Information

On the Pacific Northwest, Write to

El Paso Natural Gas Company, El Paso, Texas

El Paso Natural Gas Company
and distribution

provides natural

gas to

industrial customers

companies in Arizona, California, Colorado, Idaho, Nevada,

New Mexico, Oregon,

offices

at

Street, New York
City. Arthur I., Berliner and Leon
Abramson are. partners.

amazing facts about...

some

251

name

Paragon Mutual.
an

f

o

National

at

of A. M. Meadows & Co.

r e,

President

1301

Opens

Main Street under the firm

New

Corporation,

Y.

at

purchased his

Murray

the

offices

HUNTINGTON, N. Y.—Alvin M.
Meadows is engaging in a securi¬

1958.

becoming
Mr.

member,

from

York

Exchange, Mr. Murray will
represent the firm on the floor
of the Exchange making his office
at Delafield & Delafield, 45 Wall
Street. He has been an independ¬

membership in

of

Kings Highway.

&

of

firm

Y.—Leon Hellconducting a securities

is

man

as

Director of

and

the

Leon Hellman Opens

Stock

incorpo¬

to

E.

with

BROOKLYN, N.

Co., Inc., 872
Street, has been announced.

Main

65%-of their assets
mortgage loans, he

forming a mutual savings bank
in
Anchorage
as - a ' stabilizing
factor in the community. Incor¬

Thomas

Vice-President

a

ap¬

tional Association would give every

of

•7 A

i

i

--

BRIDGEPORT, Conn.—The elec¬

other

nation's

the

broker

S

Thomsoq: & McKinnon.
*

-

leading Alaska busi¬
have expressed interest

in

tomer's

Murray-V.-P.: of

same

Mr. deLaittre noted that there

financing

in

the

than

„•

John

de L

of

Several

nessmen

sav¬

ings banking
system, it was
pointed out

investment "other

expected thai establishment of a
mutual savings bank would be of
major importance' in//developing
35-1.Senators; George B. Mc- this
segment
of
the
Alaskan
Nabb and Thomas B. Stewart in¬ economy, in addition to promoting
troduced the bill into the upper saving among the people.
chamber,- where it carried 16-3.
Mr. deLaittre said that the Na¬
i

by the A'

mutual

porators of such institutions gen¬
erally-receive no profit on their
interest

21

(1845)
;

Utah, Washington, West Texas and Wyoming.

22

(1846)

The Commercial and Financial Chronicle

National

MUTUAL

FUNDS

Broad

Investors

stock

growtn

Group,

stockholders

BY

ROBERT E. RICH

Corp.,

mutual fund

Street

March

31.

the

$217.52

per

their

You
As

the

Durante,

Can Bank

insurance sold to

says:

purchasers—a

source

able

until

comic,
Jimmy
"Everybody wants

get into the act!". The field of
investment management has
flourished
in
the
years
since
War

II

as

For

inevitable

an

crowded, but there is
sight to the number

of

will

in

not

people

attracted by the growing
opportunities it has afforded.
The new entrant may prove to

which

there

savings bank.
Joseph A. Kaiser,

chemists.

Savings Bank, has made
that mutual

Kaiser

his mind.

on

it,

sees

creeping

fellow

banks

bankers

well

as

institutions

are

Mr.

is

eventually
dollars."

everywhere

inflation

As

inflation

dollars"

coming "shaved
told

clear

a

which results in

menace

"saved

it

investment trusts

much

very

has

that

savings

must

combat

as

when

be¬

He

competitive

attempting

to

increase their share of the
savings
dollar.
Through such organiza¬
tions
as
Institutional
Investors
Mutual Fund, scores of New York
State
a

in

funds.

Possible

methods

of

attracting
business, according to Mr.
Kaiser, are aggressive campaigns
new

for

new

tional

increased

accounts,
and

local

augmentation

of

na¬

and

maximum
than

the

possible

individual

per

present

$10,000,

increase

insured

by

in

the

Insurance

also

a

the

amount

Federal

Deposit

of

per

"Thrift

should

that

people

nest

egg

be

will

needed

buy shares in

encouraged,
accumulate

to

enable

so

the

them

fund."

our

field

mutual
their

fraternity

about

the

savings ; banks
offering
depositors
"shares
in
a

mutual

investment

trust, estab¬
operated by the sav¬
banks." He sees in this "an

lished

ings

and

by

-

inflation

to

disturb

investment

it

in

has

is
rest

will

share

on

tne

average number of

during the period j This compares
with

net

a

.

investment

income

of

$796,157 in the corresponding pe¬
riod last year, equivalent to
ap¬
proximately 5.9 cents per share
the

on

number of shares

average

(13,420,876) outstanding during
period. Total net assets at

that

March

31

of

$158,462,854 were
equivalent to $9.64 for each of the
16,438,698
outstanding shares.
This

with total net

compares

of

$162,270,678
equivalent
to

1959,

Dec.

on

$10.69

per

share

on
the 15,185,091 shares
outstanding. A capital gain
distribution of 39 cents per share
was
paid during the quarter.
Largest industry holdings of

then

stocks

of March 31

as

were:

Pub¬

lic

ern

pro¬

motion of mutual funds."
The

nation's

than

more

500

mutual

fund

The

industry.

trend

toward

financial

department stores is unmistakable.
In

the

instance

of

the

country's

Union, Unilever, I.B.M., Rey¬
Tobacco, and Farbenfabriken
Bayer. During the quarter, new
holdings added to the portfolio of
nolds

savings banks, it is a reasonable
assumption that they will move

investments

into

General

this

field

intervene.
have

Insurance

to

sell

Their stated
it's

state

laws

companies

sought legislation to enable

them
the

unless

same

variable

reason

method

a

annuities.
is pretty much

Banker

as

of

tion.

Kaiser's—

Western

been

have

all

men

Cable, Sterling Drug, and

tin,

National

Southern

Bank

Railway,

Continent

Oil
*

*

Fund

with

stick

to

their

activities
mutual

in

recent

fund

weeks.

disclosed the
purchase
of
a
majority
stock
interest in the Tower
Insurance
Group of Battle Creek, Mich. The
Tower group operates
Federal Life
& Casualtv
Co., Wolverine Insur¬
ance

Insurance

by Channing

Diverse
Channing's subsidiaries serve as
distributors and investment
man¬
of

of

mutual funds. One
its subsidiaries is an
over-the-

counter

ning

seven

brokerage business. Chan¬

wants

the




profits

of

the

compares

$15,362,985, $10.86 a share
1,413,816 shares a year ear¬

lier.
%

%

%

Whitehall Fund, Inc. placed net
assets at March 31 at $11,534,152,

equal to $12.24
s

h

a r e

from

share

a

on

942,216

against

$11,095,048, or
$12.96 a share on 855,507 shares
outstanding on March 31, 1959.
s,

~

Co., Riverside Insurance Co.

is put at over $10 million.

agers

and

This

*

*

*

sets

at

the

$16,518,464

or

pared

with

$1.94

a

Shares
the

close

of

$2.25

1959

a

share,

a

totaled

share,

$13,115,621,

com¬

equal

year

as¬

to

earlier.

latest

6,774,451.

year

to

rose

during

7,350,834 from

March

on

(2.8%), AMP inc. (2.7%), Motor¬
(2.6%) and Philips' Lamp
Works (2.5%).

the

1959,

ola

a

31

31,

1959,

earlier.

and

the

stock

Natural
and

Dec.

a

year

Net

of three

Procter

Gas,

Stauffer

increases

in

nine

issues

already

represented in the portfolio. Ohio

this

Oil

little

Company holdings

inated

reductions

and

elim¬

were

ef¬

were

.Massachusetts
31

Life

A

This

holdings

reduced

were

quarter

number

of

in¬

shares

for

the

Co;

of

gain

investments

on

three-month

period was
$2,000,548. Aside from the Canton

$57,Common

702,319 at Dec. 31, 1959.
stock

the

the

Net realized

with

compares

during

by
236,491,
from
6,551,899 to the current 6,788,390.

reported total assets of

$57,645,543, compared to $51,743,151 at March 31. 1959, a gain of
11.4%.

a

outstanding

at

Fund

of

4%

during the
Re-investment
of
divi¬

creased

'

decline

a

than

more

dends

" \

March

represents

period.

fected in 19 additional issues.

\'4f

Fund,

6,788,390 shares now outstanding.
Adjusting for the $1.35 capital
gains distribution of March 16,

Gamble
Co., and

&

Chemical

*

Madison

pared with $142,703,085, or $21.08
per share at Dec. 31, 1959 on the

com¬

new

Consolidated

issues:

*

of

assets

Inc., closed-end investment trust,
amounted to $131,613,965, or $19.39
per share, at March 31, as com¬

changes during

months period included

purchase

mon

on

$45,614,090

Portfolio

*

$43,820,432,

were

compared with $46,913,619

per

Shares

stock

27,000

holdings

•

'

,

shares

of

were

Monterey

eliminated.
*

v,

•

* V

..

.

-

-

'

Inc.

declared

/

.

Baltimore,

filiate

to

controlled af¬
.Madison Fund has

which

contracted

Eastman

quarter

Kodak.

share

from

65.01%

Net

March

to

sell

to

the

Inter¬

of

crease

time
'

'

.

16.5%

the

from

the

of

The

Value

Line

Value

transfer

disbursing

will

is

outstanding capital stock of both

mutual

This

fund's

quarterly
vestment

the

62rid

-

dividend

balanced

consecutive

from

net

corporations.

si:

'

Massachusetts Investors Trust

Eurofund

reports

net

March 31.

on

started

When adjusted

for

distribution of 22

Feb..15,
$12.90.
at

the

$12.68.

was

share

value

was

A year earlier assets
at $13.34.

was

were

the

and

per

At the

quarter-end, MIT had 113,318,419
shares outstanding as compared
with

108,681,467

a

year

ago.

Shareholders numbered 213,939 as
against 203,005 a year earlier. At
the

quarter-end,

nearly

stocks in the portfolio
of
carefully selected

having

trend

earnings.

The

companies

in

growth

balance
rate

high-

a

of

of
di¬

was

stocks with

among

er-than-average
and

the

those

better-than-average

a

long-term
vided

half

were

return

stocks

of
other
companies
earnings tend to hold up

whose
well

even
when general business
conditions may be at lower levels
and thus are considered to have

Ij

.

stability of income.

*

Delaware

*

&

Income

acquired

a

iator

&

Standard

mon,

reports

Fund

has

block of American Rad¬

Sanitary

D.

1,

tered

in

March.

fund's

notes

March
of

began

an

describing

excellent

the

market

since its purchase over
the

31

this

ago.

yield
than

3%

longer to have
income

group

and
a

fund's

"it

seems

no

logical place in

portfolio,"

the

reasons.

Institutional
Fund,

Inc.

value

of

•

*

*

investors

showed

208.48

'

a

per

Mutual

net

asset

share

on

last
of

15%

month,

the

on

close

Management
last

program

Since then the

fund

has rolled over this
paper
into higher-rate paper as interest
rates climbed.: The fund
the

effective

reported
on
this

yield

backlog of short-term notes is al¬
most 5!/2% with this rate locked
in
for
an
average
maturity of
close to six months.
During March

the

fund

added

also

stock

to

its

investments 'in

com¬

Parke

Davis, Pitney- Bowes, General
ance

Equipment and Insur¬
Co. of North America.
After

thi?se

purchases,

investments
March

In
31

common

amounted

the
total

12

to

months

net

»!:

assets

78%.of
ended

showed

.$12.44

to

on

3f!

of

re¬

29

to

Feb.

28

the figures

776,521, $11.05
shares.

The

a

shares;

Tucson

Public

Utilities,

%

19,500

*

;

^

United States & Foreign Securi¬

ties Corp. reports
on
March
31

net asset value

a

of

$106,7.98,454
share on

equivalent to $32.26

per

the

3,310,815 shares of stock out¬
standing. This .compares with a
net

asset

value

of

$118,757,860,

equal to $35.87 per share on Dec.
31, 1959 and $121,397,138 or $36.67
per share on March 31, 1959. Dur¬

ing the 12 months

ended March 31,
gain - dividends
of
$1.39 were paid. Common stock
holdings at the end of the first

1960

.capital

quarter
cf

represented

total

assets

33.03%, chemical

percentages
follows:

as

Oil

and

drug 21.96,
metal
and mining
14.63, manu¬
facturing and miscellaneous 10.77,
electric utility 4.73, merchandising
2.12,
natural
gas
1.50.
U.
S.

Treasury
bills
10.78%, cash and

for

accounted

receivables

0.31% and other investments

0.17%.

Keen & Co. Opens Branch
SHERMAN

OAKS, Calif.

Company
office

has
at

—

Keon

opened

4558

a

Sherman

Oaks Avenue under the direction
of

Joseph J. Keon, Jr.

the

1,001,151
shares outstanding.
On Aug. 31,
1959, total net assets were $11,795.538, or $12.23 on each of the
964,350 shares then outstanding.
On

General

branch

$12,458,232, eoual

each

20,000

decreases in holdings of: Amerada
Petroleum, 5,000 shares; Atlantic
Coast
Line,
4,100
shares;
and

and

,

Fidelity Capital Fund, Inc.
ports total net assets at Feb.
amounted

portfolio
19,500 shares;

stock

increase of 44%.
*

Schering,

-summer

substantial

a

14% of net assets.

the

an

short-

assets

at

1960.

replaced

performer
a year

of

portion of its bond portfolio with
bills and commercial
discount paper to the extent of

that

from

Lorillard

in

government

an

high price, however,
has dropped
to little

purchase of

paper

from

when/it

as

its recent

more

an

stock

notes

million

17.2%

February,

assets.

Battery,

to

P.

.,

holdings of short-term

rose

Eliminated

high-yielding shares.

the

half

maturity

The

ports

Gold

shares; Grand
Co., 23,100 shares; United
States Freight Co., 7,000
shares;
and Universal Match,
9,912 shares.

fund

*

*into

With

Precision

management also re¬
the sale of Electric Storage

Yellowknife

Gas,
Electric
Light
&
Power,
50,000 shares. Other sales showed

commercial

additional
the

the

Pittsburgh, continued to

short-term

term

when
*

funds

move

ringer,
Chairman
of
Delaware
Management Company, Inc. in the
investment advisory firm's latest
semi-monthly
Directors'
Letter.
fund's

Giant

Ltd., 30,000

on

Foundation Fund, fully
mutual fund headquar¬

managed

mon

Bar-

1959,
*

com¬

Moreau

Mines,
Limited,
Holdings reported
during the period in¬

increased

were:

share

a

operations.

Income

cents

$1,449,730,424

share value

June

capital gain
paid last

a

new

American

Gold

cluded:

of

share

a

This compares with

value

shares

assets

$19,956,551, equal to $19.01
$18,990,836 and $18.04

the

1960,

important

included:

shares.

Mines

A

reports total net assets of $1,436,847,189 as of March 31. The asset
of

15,500

in¬
;

*

'

15%

assets.

quarter of

Fund's

Addison

transfer agent for the

as

total

Union

income.
*

act

Fund's

&
Telegraph,
15,400
shares; American Tobacco, 10,000
shares;
Dome
Mines ; Limited,
30,075 shares; Homestake Mining
Company, 9,100 shares; and Kerr-

portfolio
divi¬
dividend

close of business

of the

Co.,

Telephone

Fund,

record

as

Line Railroad

slightly less than

purchases

agent,

agent,

for

Madison

Madison

and

Inc.

Income

custodian for the

as

securities,
dend

Fund,

Line

-

Coast

During the first

:V

■

Chemical Bank New York Trust
Co. has been appointed to act for

reinvestment agent and agent un¬
der investment agreement,. It also

29.

count

same

before.

year

k

ments, Philips Incandescent Lamp
Works, Orange & Rockland Utili¬
ties, and General Public Utilities
Corp. These five investments ac¬

$20.61.

was

Mining
Co.,
Madison
largest
holding is now

Atlantic

value

asset

31

dividend of 8I/2 cents per share,
payable May 25 to shareholders of

April

national

outstanding amounted to
2,797,408, a new high, and an in¬

Inc.

Fund,

at March 31

a

The

.

*

second

a

Oil

•

■jt Diversified Investment

#

outstanding

April,

dividend of $1.40
from net income. Total net assets

Rohm & Haas.

At

Aberdeen Fund reports net

In

year.

followed in order by Texas Instru¬

$14,653,-

each

on

endar

fund declared

length bonds. During the quarter,
major acquisition was made in

reports net

That

outfit

of America and Secured
Co. The price paid

*

gains realized in the current cal¬

City Electric, 5,000 Union
Carbide,
4,300
Kimberly-Clark,
4,000 Montana Power, 4,000 South¬
ern
Co., 3,000 Cummins Engine,
3,000 Texas Utilities, and 1,800

above average

England

group

to

Detroit,

assets at March 31 totaled

knitting.

Channing
Corp.,- the
that won Managed Fund's
investment advisory contract in
a
proxy struggle, has extended
its

of

Sunray MidColvilles, Ltd.

and

534, equal to $10
1,460,287 shares.

satisfied

Insurance,

Securities of the following
companies were eliminated: Mar¬

offsetting infla¬

mutual fund

California

Life

Swift.

New

Nor

included

States

$1.05 per share representing
a
partial distribution of net capital

Fund's

as¬

31,

investments), Cenco instru¬
(4.2% of total), Fruehauf
(4%), International Busi¬
ness Machines
(3.9%), Armour &
Co. (3.3%), American Photocopy
Equipment (3%), Unilever N. V.
ments

Trailer

lantic

were
.

total

$2.50—$1.45
income and

net

&

58.66%

reduced

shares (15,587,264) outstanding

from

investments:

vidual

Machine

at the year-end with the proceeds
invested
in
shortto
medium-

by
the
sale
of
3,000
Company of Amer-. shares of American Re-Insurance
ica
net
income
for
the
three and
7,700 shares of Halliburton
months ended March 31 was $1,Oil Well Cementing.
Holdings of
030,604 or approximately 6.6 cents 23,500 shares of Jewel Tea and
a

share

per

of

dividend

a

10 largest indi¬
American
Foundry
(4.5%
of

following are its

Dec. 31, 1959,

on

Thursday, April 28, 1960

er,

Investment

mutual

today's aggressive

were

Common

Report

savings banks, incident¬
ally, have assets in excess of $35
billion, roughly twice those of the

to

21,600

5,300 Florida Power & Light,
5,200
James
Talcott, 5,000 At¬

to

utilities, 10.4%; electrical and
electronics, 7.2%; chemicals, 6.4%;
transportation, 6.4%; tobacco,
5.9%; oils, 5.7%, and insurance,
5.2%. The largest individual hold¬
ings at market at that date were:
Philips' Lamp, Pepsi-Cola, West¬

answer

were

of

holdings
of
common
16,000 Tampa Elec¬
tric, 12,700 Corning Glass Works,
10,000 Parke-Davis, 10,000 War¬
ner-Lambert, 8,500 Black & Deck¬

grow, too.

The Funds

positions

purchase

to

shares

fund

continue

New

said.

of

tions

amazing growth
And, because this

newcomers

the

com¬

the past three

firm

stock

by

in

clared

the three

a

-

Georgia-Pacific, 15,000
shares of Ampex, 15,000 shares of
R.
R. Donnelley &
Sons, 15,000
shares of Holt, Rinehart & Win¬
ston, and 8,300 shares of McGrawHill Publishing.
Principal addi¬

growth shows every sign of con¬
tinuing, the pioneers in this field
may be sure that the competition
from

the

common

for the

shown.

■.

"continued

invested

stocks during

taken

consider

mutual

at

$13.20, compared
the start of the

at

Investors

months,"

which

the

1960.

share

'/

mon

community. It
he, or any

the

on

-

he

of

each

was

virtually fully

become

says

an

seem

but

sets

Kaiser has other ideas.
talked to members of the

has

He

the

moving

But Mr.

banking

not

31

months

of

"$13.41

National

.

Kaiser

three

value

shares

to

by

-

processors

*

>:

•.

increased

year.

ladies'

on

is questionable whether
other
banker,
would

Corp.

to
more
than
depositor. "Good," the
mutual fund man
might well say.

$10,000

to

does

serv¬

account

with

shoemaker

food

*

motivated

advertising,

hours

ices, and possibly changes in the
banking laws to permit a higher

a

are

and

Banker

savings banks already have

stake

in

his

determined

are

williamsburgh

b i g

the

to

first

March

live

we

assets

from $102,917,014. As¬
share declined 1.6% in

per

the

life

Asset

turers, coal miners take
underwear

Brooklyn's

ill,

or

stick

be the most formidable of all—the

of

for

last, even
plenty of shoes
around that need mending. Textile
mills get into
(and out of) the
pleasure-boat business, flour mil¬
lers become appliance manufac¬
when

are

president

sets

of consider¬
now

net

about 37%

contractual-plan

companies.

good

society

in

end

no

revenue

insurance

outgrowth of the affluent society.
Of late, it has been
getting rather

who

months

beloved

to

World

holdings by a net $8,488,221
during the lirst three months of
1960, and over the preceding 12

It!

on

31,

a

quarter-end record of $140,833,304
at March 31.
Investors increased

.

with

compares

share

.

$210.07 per snare on March
1959.
In April the fund de¬

and

to

to

rose

This

the

reported

assets

net

of

.

were

$8,-

share and 794,064

company reports the

New
DENVER,

Paynter Office
Colo.

—

Paynter

Company has opened

a

and

branch in

the Denver U. S. National Center
under

the

management

of

Rich-

rfft A

f.

Volume 191

Number 5946

.

.

.

tWtfiniMM* n*"**

The Commercial and Financial

H

.

Chronicle

at $813,000.

The company intends
apply such porceeds approximately as follows: (1) $45,000 for
the purchase of stock of Diversi-

Applied Elect.

PUBLIC UTILITY

Stock Sold

SECURITIES

BY

OWEN ELY

S.

D. Fuller

&

Co., of New York

City and Associates on April 26
200,000 shares of Applied

offered

Electronics Corp. of N. J. class A
stock
(par 10 cents) at $5 per

Montana Power Company

share.

issue

-

Montana

Power

orfn^A

Company

natural gas in

y a

cost fuel. The company is also one

serves

Singd6irof thfsteateainC°sS;
1r? communities aI}d
.was added t(J

fh

i
stem late
last year. Natural

A

anf refin-i

ing, -and the < lumber

nn?
The
.

-industry,

are

750

u

fied

duction
of electronic telemetry
instrumentation for use primarily
in the Government's missile and

Industries Corp.; (2) $33,000
for the repayment of certain in-

debtedness

owed

to

certain

of-

ficers, directors and stockholders;
(3) $150,000 for the establishment
of laboratory and sales facilities
in Dallas, Tex., and sales and service facilities in Los Angeles, Calif.;
$200,000 for research and

/4)

;

space
exploration programs. Its
principal office is located at 22
Center St., Metuchen, N. J.

Named Director

■

de-

r^n«

ir>

-n

;vSvcwJwnSa L
DavW J

Directors

tlfe^oard

'

r

■'

:*;■

•

,

i

'

•

-v

times

looking

and

:

.

:,

. ,

ahead ;■*
;

;

double the present supply of gas*
million lUst year. Value added by; Will /be' needed. Hence it is ac.

'

m&hufa<rti!irers'>--^tals about ^$185

tively Seeking new reserves both

;

,niinu0ni*
v"A
./ in the U. S. and Canada, and the
1
The state is^ also noted for: its • program thus far has been quite
mineral
4.

•

x

:

,

'-

operations, and value-of- successful.

mineral products more than doubled in the postwar period/ (ex-

'

'

the

At

of

end

the

1959

com-

Ttie'ISlS^sfrike

debt ratio wa3' 47%„.;pre-

mid-February- depressed the industry last year,
but the .strike has now been set-

fock equity 41%. It has been able

cluding 1959V

whSh® S42V^ZS:-ferred,6tock
i

lasted

until

tied and Anaconda has

ing to June 30, 1962. Production
rapidly returning to normal

is

both

the

in

conda's

mines

and
total

remainder

of

r

in

thp

they

as

same

were

Ana-

u
outlook

future

?"ant/pg
"S icWtltln+pd th^*
^ure/ (By 1966, it is estimated, te *equity^ratio will still approximate -

rate of pro-

in 1959 prior

ctrllrp

The

the

at

operations for the
i960 will be at ap-

proximately the
duction

and

refineries.

46%,

•

The company has
major program of

a

reduction.

Poduction

of

con-

cost

of

some

in

ore

above

the

: V

-

>

industry

Y

*The

gain

this

may

be

sidered

mg

be

the

on

soundest

accelerated

depreciation

cellent

has

Power

growth

in

shown

the

postwar

period. Since 1959 was an abnormal year comparisons have been
developed for 1960

ing

period

this

vs.

total

1946: dur-

residential

and

commercial

have

gained 242%, revenues from

revenues

industry 218%

general

doubled.

Share

somewhat

earlier years,

rev-

earnings,

irregular

in

have gained steadily

1954.

since

Electric
totals

000

Gas

and net income more

310%

than

while

will

and from

sales to Anaconda 41%.
enues

In

ex-

-

generating

capacity

671,000 kw., including 530,hydro power, 66,000 kw.

the

payout
*

story future home of Ryder System Inc. executive offices in Coconut

The happy fact is,

only

averaged

that while management was absorb¬

ing its most ambitious expansion

program to

date,

Ryder System chalked up its greatest gains in 1959:
r

Operating
from
per
a

revenues

operations

increased by 37% and net income
sizeable 40%. Net income

rose a

share went from $1.51 to $1.80. All this, during

period of acquisition and expansion that included

launching

past five years dividend
has

Grove, Miami

'

occupied in September

and

competitive basis in its entire his- is considering providing for futory.
Montana Power therefore ture taxes on income resulting
expects to sell Anaconda as much from its use.
power and gas as it did prior to
Last year's earnings of $1.36, up
the strike, plus additional amounts four
cents over 1958, were obnecessary to supply future mech- tained despite the depressing efanization and increases in Ana- fects of the long Anaconda strike,
condas operation—perhaps adding With the strike settled early this
as much
as 30,000 kw.
additional year, the outlook for 1960 appears
load by 1962.
favorable.
Montana

7

ac-

counted for by inclusion of tax
savings from accelerated depreci-ation. The company is restudying .
its accounting procedure regard-

ventional

new

to be

changed from deep conmines to the Berkeley
open pit and the Kelley cave mining, and the operation is now con-

Butte has

to

.

yVvy V

Over the past five years Montana Power's common stock earnmgs have shown an
annual
average gain of over 10% but

conda's Montana operations seems
mcre attractive than at any time
ducted

well

average.)

for'Ana-

in the past.

•

®a
common stock. Witlr a...
comparatively; ■ modest construetion program expected to average
^out $12 million annually ^oyer
*
nPx. f *ve years, j^jloes not
expect to dcrany further financU- i
<3
^ ;

with the Mine-Mill Union extend-

smelters

and ' common

Jo maintain a high equity ratio
throughout the years without the

contract

a

12%,

a

new

(but related) nationwide general

leasing operation. All 1959 goals for revenues and

52%

compared with the industry average
of
70-75%,
but
President
Corette has forecast that the pres-

were

achieved-a tribute, we believe, to con¬

tinued careful

"growth" planning and management.

earnings

ent 80-cent dividend rate may be
raised

to

$1 in July, reflecting a

change of policy,
about

since 1950

HIGHLIGHTS! mm

FINANCIAL

Montana Power's common stock
has

quadrupled in price
(after adjusting for the

Up

Up

Up

Up

And Up!

1955

1956

1957

1958

1959

$31,824,567

$37,688,630

$46,645,171

$60,919,687

$83,620,391

1,281,930

1,511,530

1,504,942

2,351,941

3,289,693

1.48

1.25

3.13

1.51

1.80

240,277

456,310

659,947

821,146

1,184,189

3,765,459

5,089,280

6,035,501

7,863,600

11,889,621

747,900

1,308,450

1,542,726

1,576,478

2,061,642

split) while Moody's average of
utility commons increased only
12i%. At the recent price around
26V2, the stock yields 3% (or 3.8%
if the dividend is raised to $1) and

Gross Revenues

sells at about 19.5 times earnings.

Net Income

kw.

and

steam,

75,ooq kw.

purchased

rnfZwf

souri

Rivers

generating

steam

ings

if

station

Bonneville

from the

Bureau

'at

and

a

Bill-

steam

&

Co.,

power

in

the

Depreciation

2030 Milivia
.

„

of Reclamation.

Dividends Paid

has bee" named residenJ
manager of the Berkeley office of
ber§

of power b
- *
'
25,000 kw.
Be has been*

r

addWona?

Per Share

Reynolds Branch Mgr.
BERKELEY, Cal.-Fred C. Blum-

purchase ^on-

has firm
for 50,000 kw.

tracts
from

watersheds ^ind

,

,

Shares

...

associated with
registered

RYDER SYSTEM, INC.

representative since 1953 and was

Corporate Relations Dept.

Previously associated With Davies V;

P.O. Box 33-816 Miami, Fla.

Reynolds & Co. as a

last year ® uo*
from
Northern
Pacific
In«.pi.naf:orial Fund
Railway acreage containing about.
Ilficrnaiionai runa oaies
60 million tons pf sub-bituminous WASHINGTON, D. C. — The firm \
coal
in
southern. Montana, to- name
of
Officers
Investment*
future,
leased

.

the

Outstanding

at Dec. 31

A copy

of Ryder System's 1959 Annual Report will be sent on request

company

gether with the operating proper-; Plans, Jnc.v 1625 Eye Street, N. W.,
ties, which will give it an almost has been changed to International
unlimited ; supply
of
very
low Fund Sales, Inc.
■ .




nf

has been

Greene & Co

estimated

balance,

TMmxr

fir™

i* located

this basis over a 27-year pe- ;
riod, itr is estimated that nearly •-/

$90-

the

<6>

,

;

billion

on

Tourists^
"^lchvisit
contributed

yearly

about 22

are

-communities,

1?dlis^r^e?;

Saa

o

2,500,OOO
state

totaling

reserves

the 1959
in Montana,
Wyoming and Alberta, Canada;
some' 274 billion cf. are under.
contract from Alberta & Southern '
Gas' Company; The company
wants to extend service - to new -

•

j

the

(re-

organized

at elected to
of
Brown Co., manufacturers of
of securities offered are estimated the company for working capital, pulp, paper and forest products, j

Montana Power's gas sales conabout 31% of revenues,

'ls.tbetmajor^industry
»Ti^1^?'iaCC?Untl?g fof aSout
ura\,V
°t Producti.°^; ^
^

.the

V>

tribute

Alas

fa®, s JP£.pJjfd to 63 communities cf^ or
*w
' * Vu sales,
Fai mmg S-er^wf 1
w

on

was

company

under New Jersey law on Feb. 4,
1959. The company is engaged in
the design, development, and pro-

proceeds from the sale $230,000, to the general funds of of

plus power if the project is authorized
New York. Electricity is .and built.
.

of

concession

cents per share

allowance 15 cents). This offering

''of 'hydro

Engfand

equal to all of New
half

30

The

to

of the sponsors for the big high was quickly oversubscribed and velopment* (5) $155 000 as a re^0l;nta'n. Sheep Project on the the books have been closed on serve for plant construction; and

a

ref 0f we3t"

m

Dealer's
was

23

(1847)

•

,^wev.w£.w.v.£*.x^

:-x*yvx-xvx-x*:-

*

•

.!

24

(1848)

The Commercial and Financial Chronicle

We Can Grow a Lot Faster
With £L Avv/CLl
Real hlational Effort
ttt*

YV

i

i

-r-^

11/11

of

actual

plant

use.

turn,

XT

Ci

Continued from
stock

1

and

This

investment,
average

in

growth in the nation's total
of goods and services
of almost 4%
per annum.

nations—such

the

Japan,

USSR

growth
annum

rate

m

of

field

of

and

investment

but

growth.

*'

40

the

evidence in the record
for the U. S. or other
nations that

since

are

the

.

Making the Effort
„.

to

"7*
of the

.

This
to

«

review

If present national
icies are

elerate

Accelerate

seems

reason

to

annual

rate

to

were

hope
of

it

could

phasized

economic

with

These
A

are

growth

the

the

t

lore

Tf

13

even
em-

the

i

could

we

amount

of

store

in

ment

na-

period to

our

production
services.
At first

not appear too dif-

may

from

total

the

11%

rate

to

of

13

invest-

14%

or

of

t

of

business

.

T

.

investment

,

to

total

than

more

other 4

gross

persist,

$80

billion

5 years.

or

When

chains, through

in

an-

;

;
looks at the problem

one

.

way, it is clear that

effort would

past decade> total food chain

eco-

sal^ and

be

a major
required to stim-

depreciation

funds.;. To

in-

t

o u

growth

the

of

the

would be the

the

once

higher?
been

rate

How-

case.

transition

of.

to

investment

achieved,

a

had

would

everyone

gain from the more rapid increase
in production of goods and servIt

ices.

would

comodate

all

be

possible

needed

to

government

expenditures and still leave
for

substantial

a

rise

in

the

financing accelerated economic
growth, while
extremely important, is only one
aspect of "the challenge we face.
More rapid growth would
require
greater efforts to
develop and

market new products of all sorts.
We would need not merely to invest
in > more
machinery
and
equipment, but to step up the pace
of modernization of our factories,

.

capital,

or

additional

have held to be necessary. This il-

ad-

to

Thursday, April 28, 1960

ustrates

the

the

tive

were

I

reality. If the over-all
grow

mentioned
be similarly

opportunities
enhanced. In

billion
—

in

1970

billion

economy,
sales
chains could
approach

time^ ageneralReform of thftax
Uucturf couTd cSute to mwe
wide-spread^TaVtali and fn^est-

econ-

faster-say
that

.

to

SJSthStZ ^no^^
throueh

I

would

individuals

$900

a

of

details

$50 billion,

oWf 9i/»

a

earlier, we have day, 6 °*" ' days a week. Bu11 h;ave
virtually universal edu- we perhaps now stressed. leisure
through the high school; too mucn, ana are we making the

cation

level, and
the

Gf

groups in

Yet

colleges

there is

cern

0f

shall

we

individuals

or

universities.
for

room

longer

f;less

Qur goal should be the pursuit

of"excellence Tn~the
h

POntext

of

values

nprf0rmance

p

f

pk

merelv
nf

_pn„p

in

.

+

the

?

t

f

,

Rather

inriiviHiials

nffpr

the^ .maPY difficult
steps which must be taken. Many
of the sPecl/lc Policies for growth
cut across the immediate interests

nnnnrtimitv

nf-if thmr

for

to
we

°* var\ou? groups and individuals,
Thus, it is vitally important that
the na^on &aln an understanding
of the Problem as a whole, of the

m'axi-

a

develon-

nntpntialitips

hp1ipvp tbat ^duration is

a

We

nrocess

'inXTduaf
}

d

in

purposes

the

thp

I
,

natinn'c

i

~

natl°n ' eC°n°mlC ^

believT
e,
believe

it

u

,

would

be

woulcf

pe

f° ra'S6 7e,.sar,]e totaI

Tu

Z

-7 "Ci"

a solution fit together, and of the
benefits to the entire community

great

freedon? and

celerated

work

do far

can

to

more

more

elec-

use

f

free

our

buy

at

prices

that

keting the greater volume
that could

celerated

be produced

growth

ing

quarter of all the

point

I

have

listed

greater
to

are

positive

speed

ef-

tion
Per

ade—a better prospect than any
previous generation faced, and a

stimulating

and

remove,

path

of

growth.

I

refer

to

the

lu

ouch

ciich-

un

jn the food field

cited

as

of

one

plishments of

can

justifiably be

ods.

civilization. The

in

instant

of the

The-steady

such

to

develop and

uuui

While

propose

to

the

specific

features

of

on

these

impediments

to

growth,

economic

growth

of today

omy

and

casts.

I

them

use

only

to

possible

were

to

exert

a

if

the

major

to

nation

?

S

••
u

cuiu

maintain and accelerate
economic
growth. In a
37iy
not

given figure, and

of

*

jv

.

period

would

enhibit

historv
aence

one

ahead.

I

their

system

own

to

^hnnriant^
mwrnm?nt aotiL

government action




Th

'
can

tax

on

reform

nip p^6 Con?mittee' for*

^owth Economf^

nrnvidM

that
that

statement

a

'

t
■

need to be

^

.

and investment
moderately

u

^

"

burden

would
lessened to

contribute

to

the

ulti-

prosperity.-

Each
one
along
with ^ other
business leaders, must join in the

endeavor

directing
potential
into

.

of
marshalling
and
America's
tremendous
.

for

accelerated

appropriate

I

urge everyone
active role in

cnaracteristics of

growth

channels.
to

take

Thus,

a

more

will encourage it.
——.

„

.

.

v,liai„a

seemingly

to the improvement
to
the

variety of diet,

no
no

in the
or

limit

quality

the

ease

jl

& & v. o

xwwvx

xvvcnx-

to

lnvolvod

efforts

than

have

forthcoming to date,

Nesbitt Asst. Cashier

"

Poses
The

choice

of

harder

longer hours,

as

the

broad the emergency
creating a War II If we

or

-

For Mercantile Trust

Leisure

naLa coST:

irking

maiority

by

working

done

was

a

S/SnfW

bv

under

conditions of World
as

nomic

growth

I

should

like

stress the basic importance

ucation. In

to

of ed-

a very real sense, the
general advance
of
a
modern
economy depends on advances in
education, which is just as much

could

billion

bv
a

otherwise

1970

year

nation, merely

be

be

nrodnrinc

more

the

wo„VCI1

been
been

^ physlcaf outo^^JdtateW

Importance of Education

Th0,"turn

resolute

of

^ preparation. Thus, food retail-

xvo

spec7f"cTugglsti7n3 alormThcsI pr?bIenJs

policy

can

nation faces in the

our

By continuing to
jobs well,-they can
provide a living demonstration of
the ability of a'free
enterprise
do

appointment of Edward H
Is ^saleTrep^eniative

Nesbitt
in

the

than

case

Bond

Department

the

of

tank

and

work

with territories in St. Louis,

™ssr.'f'.K.riars
SUarni^tn elect?rate
Eronornfo
kno

of

j

__

numbed

number

tions, to broaden the understanding of the challenges and op-

our

when such

S
frowtn

a

S3

A

a

UmU

_

a^Teconom c"growth

free^economy noTne

in

to'the ou^ntUy erlte ZTate
our rate of
"y Mr' R°ckeWlyr-be
Pf <lu'antlty
our rate of economic growth "
'cT.^c
K
°f thM°od a pers0? should con- will require even harder and more April
sume, there is
,sume,
n, i960.
a

lfwoufd" I'nelal Economy gr°Wth
most_ significantly
/'
problem of
financing the
Basic

the

pro-

-

investment necessary for acceler-

to

busi-

spreading an understanding of the significance of
food'imlted .... by the narrow - most important poins I wish
economic growth and of the un¬
?ap?Plty of,the huma" stomach." register here The first point" to;,
fs pbrtance -of
-pursuing -sound ,naJ" ]he Postwar period, however, that it will take hard and per- tional
economic policies which

giv^ due in its own right; but
what also ^contribute

effort

individual

citizens, do to

contribute

can

fur-

significant impetus to

a

increases,

the

mote the general advance of our
economy? It seems to me that they

adop-

do" not

dwell

nish

mar-

I

some^ concrete .measure of
might be

sales

and

meth- -portunities

or

I

living a decfood
industry

the

can

nessmen

lctuui

believe their removal would

growth

foods, prepared mixes,

move

ui

tion of better machines

of our system of food
distribution is unmatched
by any
nation.

hence,

What

business management which
interfere unduly with the

efficiency
other

pen i

to fail

would face opportunities for very

and

the major accom-

our

tiic

were

average level of

substantial

spend- things as our farm
program, other
ing accelerating economic growth :government
subsidies : (such
as
DOses
both great challenges and
nostal subsidies, irrigation and
in-

u^j

dec¬

a

If the nation achieved this objective of 50% improvement in

reduce

or

in

to realize its full growth potential,

fields,-ade

to

50%

far better prospect than could be

progressively
some
of the
barriers we have imposed in
the

one-,

person

beld out if the nation

intensifying
to ^ develop
talent
improving our educa-

need

almost

eco-

sav-

effort

we

growth, the naincrease consumption

accelerate

investment,

marketing,

to

economic

couId

consumer

liiCctisuinig

for
ag-

encouraging

tional system. In addition to
positive efforts in these broad

lenges. The new marketing techniques developed over the years

op¬

,

we

and

through

ac-

require

for

of
and

industry. By working
gressively
and
intelligently
your

development in all
including special emphasis

the

,

accounts

and

on

imagination in developing
new
techniques and great vigor in
putting them to practical use.
food

we

research

of goods

would

;

.

in which I believe

make

fields

yield

under

areas

forts if

great

since

y '

nomic growth

reasonable profit to sellers. Mar-

a

process,

creation

expanding horizon
portunity for the nation

•

must

of

more

economic growth. In the

7
can contribute to the
of
an
—

Up to this

goods and services
can
be increased
only to the extent that individuals are
willing
to

6

three

marketing. In

calls the tune. Our total

production

a

_

enterprise economy, the

consumer

and

of the fruits

Other Critical Problems

necessary to speed the introduction of new products and increase
of

growth

use

growth

token, it would be

the effectiveness

economic

constructive

paper-

efficiently.

same

from

th|
catioP

the

By the

~,
sys;
and

?Hd

ac!

to

wen-con-

suPP°rt, .f(?r

totalitarian

technicians

a

celved and well-articulated pro&ram which will enlist national

which

encouraged.

wide_oDread eduin

nrenarin^

fbp
,

is

of

-

ceferatea

■

h

can developa greater
national purpose than

we

sense

un-

is a well-coneXdrtteTterowtTiis^enwenrpnn"
gr°wtn is.

individual chnnld he exnosed

.

w°

not

hours

fundamental' reauiremeS

"that

sense

wnat^wewenave,
will

tnougn,

succ^e£
persuading people to
work harder or
*

•

oi

Clearly,

con-

qualitative aspects

educational system.

our

heSt use

half

see

eligible age

much

the

over

soon

of

banks

of

tronic equipment to handle

savinffs

of

more^efsure^ime6^^
mo e le s
1time and

adoption of entirely
new techniques. To cite
only one
example,
both food chains and

and

Withou?!oinginto "htu Jbe
the comnlex
field
H P '

in

taxation '

Traly4 food'dmins8hav^a fmaiOT
stake
growth rate

and

to

°f

regard for human dignity
Clearly,
accelerated growth,
-t
f excellence in edu_ ry In specific terms, the food chain
wiU contribute to the at. business for example, should worlc
tainmen+ 0f our obiectives' of ac-1
r Policies to accelerate general

institutons.

food

is

c.^a%nSes

indicated

,

a

it

w?®n1^'^
f« ^f?.^ers
toiling 10 and "
hours

.

omy should
the $900

choices

if

achieved

restrict
Cre^Se .such busine/s.saYin^. a ket new products to fill new needs tive practices have a
ued erowth L the
decidedly reJen7ral eronl ™oderat® r®form of theJax
on
the
Part
of
individuals,
v,
; ; tarding effect on growth.;- ,
omy
at the Dostwar rate
would
would be necessary. More libIt Once was an
accepted premise
The obvious
provide the opportunity to
difficulties in doing
double nhw lo^^red^etiL in
the^
a011
of
economlcs
that
food
sales
would
food chain sates in
anything constructive about such
^decadt
"am
me co^orate^ncorne
ax
not
pTaceS rise mor?, s,owly 7 a growth, growth-impeding features of our
predicting that this will hap- on
business sTvings would be eco"omfy
than f1'f 0Lmanyc0t ^ ec,on°T .l'te as government subpen-my point is that the
oppor-> 7eedeT t?
increase
th^
rate
of
tunity could exist, as a real chalPr?d,ucisfact,;. Adam Smith . sidles, tariffs and restrictive work
Corporate^investment
At
thfsame P01"^^ out that: "the desire of practices, underline -two of .the
lenge to exert best efforts to make
it

hard

make

w° i!

the need for
fo
this

As

the

must

r?ea?Ucn>
the

meeting the quantitarequirements for education,

of

one

nation

progress in

Pntinn

of

.

While much remains to be done,
our nation has been
making good

*

-

problem

offers

vantage
of
contributing
broader values we seek.

room

private

living standards.
The

ac-

land

resource as

it

and

re-

of

receive

ever,

ui

year,

come

individuals and groups
less income than

some

otherwise

.

over-all

growth would require liftthis total business investment

ing

relationto

and,

nomic

in

since

.

equipment this

.a

+2 blllJPn m this
con-

If

increase

would provide the

and

glance, it

to

mean

sales

things

gross

postwar

we

ficult to raise

rate

growth

a

product

t#0?
lood

Q7n*

such

economy
If recent

ships of food

1970.

6%

goods

Si?

chains.

national

if

Thus, to accelerate

might

the

possibly

.

over-all

food

of

some

the

of

14%,

even

0f

n

o

4

ad-

stock of capital needed to
support
a
growth rate of 5%, or

vpar
,

economic

plowed back into
investment from the
11%

or

1

-_rl7
What

in-

g^ss national product However,
i
what. lsinvolved is an iricrease of
X °ne-fifth to one-quarter in the
effort

ou /o. It a concerted
national

thic

can

increase business in-

that

average

gross

S

real

easy proc-

we

product

sucb

our

were

a

to

annual

tional

postwar

growth trend would yield

are

vealed

exciting possibilities,
of

of

growth

new and better
plant
equipment. Research has re-

and

sufficient vigor.

continuation

or

of

way

that

vestment in

advance

perhaps 5%, or possibly
b%, assuming policies which

pursued

another

opinion,
rate

have

modified.

or

automatic

my

measures

to
,

is

tax and

Act

that could be done to
step up our
growth? Of first importance are

be

lift

economic

repealed

our

What

Research
there
is

believes

did not

economy

Increasing Investments

.

conclusions:

Economic

in

history

vance, if we are willing to work
at it and to make the
hard choices
that would be involved.

economic pol-

growth
our

Department

an

crease

continued, we should, in
the future, be able
to match or
exceed the long-term
growth rate
of 3.7%; if a national
effort to acadopted,

1930-

decade

Wagner

this

of

In

ess.

.

record

to support two

me

.

the

been

is not

a

n«

S.

emphasizing the fact

as

recent survey by the New
York
Federal Reserve Bank
shows, the
evidence suggests that
price inflation interferes with
growth.
•vr

of

AH

necessary

contrary,

only

economic

undistributed profits

parts

On

the

U.

un-

grow. Some of the measures which
with
growth, such as

no

growth.

1940, and the

is

the

were

increased investment

basic

a

government. In the

over-all

would

many of

depression-more

or

would

greater

carried

recovery

not

economy. This does not mean that
the
process
would
be
painless,

en-

interfered

..

inflationary policies

quired

essential,

persons

recorded

worthy of note,

for

were

slowed

great

million

decade

our

when

One other observation from
the
historical record is

There is

the
8

employed in

equipment has been one-quarter to
three-quarters larger than that in
the Ut S.,
emphasizing again the
key role of investment in economic

1930's

measures

than

and

the

reforms

hindsight shows that

from

crucial

plant

economic

in

these

But their
the

in

industrial

the

out

to

recent years

of

of

experienced
10%
per

5

that the

investment,

need

sense, accelerated
growth could be self-financing in

terprise, and growth can be held
down by repressive
policies. Many

West

\ as

Venezuela

have

—

rates

broad economic

One has only to
go back to the
1930's to see how

an-

nual

Germany,

V

and

savings

objective

consumers

investment,
initiative and enterprise to an extent which precludes growth.

equipment in

an

XJXXV^l

this

any absolute reduction in
flow of goods and services to

j

.

repress

production
Other

I

-L Y Cfc UlvyilCil

page 15

supported

•

j

achieve
mean

the

.

wilT

contoue

in

sales

—-

$^0

0

^

Stander Opens

would

that is
BROOKLYN, N. Y. — Robert M.
than enough to
cover the in-" Stander
is conducting a securities
in
national
security ex- business from offices at 26 Court
penditures that various
—

more

crease

experts

Street.

*

Ft

T»V"i

Volume 191

tfffc

*»^IVF -

1ik4tk"*uJAiiJiL*i

Number 5946

.

X

PICTORIAL 1

'. The Commercial and Financial Chronicle

TORONTO BOND TRADERS

28th ANNUAL DINNER

AT THE

APRIL 8, 1960

KING EDWARD HOTEL

OFFICERS

Lyall M. Wightman

G. Campbell

Isard, Robertson and

Burns Bros. &

Co., Limited

Denton, Limited

T reasurer

Secretary

V ice-Chairman

Chairman

James G.

J. R.

Carnegie

McCloskey

Royal Bank of

Wisener, Mackellar
and Company,

Canada

Limited

Honorary

Honorary

Honorary

Chairman

V ice-Chairman

Vice-Chairman

John S. Proctor

L. L. Bell

David L. Howes

Imperial Bank of

James Richardson &

Harris & Partners

Canada

Sons

Limited

GOVERNORS

W. T.

Copeland

Deacon Find ley

Coyne Limited




W.

Lloyd Garrett

Nesbitt, Thomson
and Company,
Limited

T. T. Malone

Harold Irving

H. B. Boyer

John A. Lascelles

Donald L. Erwood

Wood, Gundy &
Company, Limited

Dominion Securities

Equitable Securities

Dominion Securities

Harris & Partners

Canada Limited

Corpn. Limited

Limited

Ex-Officio

Ex-Officio

Corpn. Limited

1

PICTORIAL 2

i

The Commercial and Financial Chronicle

John

S.

Proctor, Imperial Bank of Canada; John A.
Lascelles, Dominion Securities Corpn. Limited;
L. L. Bell, James Richardson
A Sons; Don
Erwood, Harris A Partners Limited '

Paul

.

.

Thursday, April 28, 1960

.

Flemming, Flemming A Co.; David Howes, Harris A Partners Limited; A1
Clark, Bank of Canada
(Ottawa);
Roy McCloskey, Royal Bank of Canada

»*

!;
ri-l

#

Iff

f

*

:,V-i

■:( i

VI

Jim

Angus, Bankers Bond Corporation Limited;
Roger Ouellette,
McDonnell, Adams A Co. Ltd.; Jim
Crysdale, Mills, Spence A
Co. Limited; Karel
Stonner, Bankers Bond Corporation Limited

Gairdner
320

8

Harry

Whitaker, Nesbitt Thomson
ond_ Company, Limited; Bob
Meggeson, J. R. Meggeson A Co. Ltd.; Ron Rice, J. R.
Meggeson
A Co. Ltd.;
George Sythes, Fairclough Co. Ltd.'

R. J. Fox, Toronto-Dominion
Bank; H. G. Jarvis, A. E.Ames A Co.,
Incorporated (New York City); Douglas
Annett, Annett A Company
Limited; J. T. Skelly, Midland Securities
Corpn. Limited

Company Limited

Bay Street, Toronto, Canada

McLeod,Young,Weir & Company
LIMITED

We

provide

complete service for corporate
financing in Canada. Private enquiries from
a

dealers

'''1

are

Members:
The Investment Dealers'
Association

iti

Government, Municipal and
Corporation Securities

Members:
The Toronto Stock

Exchange

Montreal Stock

Exchange

Canadian Stock

Winnipeg Stock Exchange

Exchange

Vancouver Stock Exchange

Stock orders executed

•

i

on

all

Exchanges

Head Office
50 KING STREET

Affiliate
'

?<

of Canada

invited.

'

Gairdner

'

'
'

'J

Member:

&

Gompany Inc.

Montreal

Ottawa

Calgary

Kitchener

Winnipeg
Quebec

WEST, TORONTO
London

Vancouver

Sherbrooke

Windsor

Hamilton

Edmonton

New York

60 Wall Street, New York

The Investment
Dealers'

Affiliate:

Association

of Canada
'V




Toronto

Calgary

Kingston

Kitchener

Ottawa

Quebec

Edmonton
London

Halifax

Montreal

Vancouver

McLeod,Young,Weir

Hamilton
New York

Winnipeg

INCORPORATED
15

BROAD STREET

•

NEW YORK

PICTORIAL

STOCKS

BONDS

Markets

3

maintained in all classes

of

Canadian

external and internal bond issues.
Walter Sullivan, Equitable Securities Canada Limited; T. A. W.
Duncan, Annett & Company Limited;
Bert Allman, Annett & Company
Limited; Peter Crysdale, Mason & Crysdale, Ltd.

Stock orders executed

the Montreal and Toronto

on

Stock Exchanges, or net New York markets quoted

request.

on

Private

wires

Toronto,

to

Montreal,

Ottawa,

Winnipeg,

Calgary, Vancouver, Victoria and Halifax
BELL

SYSTEM

TELETYPE

NY

1-702-3

Dominion Securities Grporation
Associate Member American Stock Exchange

Boston

London, Eng.

Calgary

Montreal

Telephone WHitehall 4-8161

Winnipeg

Affiliate

Canadian

Halifax

David

Toronto

40 EXCHANGE PLACE, NEW YORK 5

Ottawa

Mead, Intercity Securities Corporation Limited; Don Nichols, Royal Bank of Canada; Walter
Wilson, Intercity Securities Corporation Limited; Harold Fallis, Frank S. Leslie & Co.

—

Member

Canadian

and

Stock

Vancouver

Toronto, Montreal
Exchanges

Victoria

Canadian
Investment Securities
'-1-sV" ■'AV
<

■

.v.;

t

'

V

■

.

wSSSv

At

'

••

■.

...

+■'/'-

^...

•

•

.

.

.
111

'

—*=.»v"

I. I.

•** *

."

;•

/.n^

*

^

;

;
iiiq.*'

"

• ««*

v

,

.

"

'

.■1

.

'

..

E. Ames & Co.
Limited
UNDERWRITERS AND DISTRIBUTORS

A. E. Ames & Co.
Members Toronto and Montreal Stock Exchanges
OFFICES

IN

14

CITIES IN

CANADA

AND

ENGLAND

A. E. Ames & Co.
Incorporated

New York

BUSINESS

Harold Thomson, President of Canadian Bankers Association;
Limited
(Montreal); Lloyd Garrett, Nesbilt, Thomson and

Boston

ESTABLISHED

1889

Jack Love, Dominion Securities Corpn.
Company Limited; John S. Proctor,

Imperial Bank of Canada

Harris & Partners Inc.
\ ..StS:

15 Broad Street, New York 5

'

Tel. WHitehall
:

-,c.

4-0731

:T

Affiliated with

Harris & Partners Limited
55 Yonge Street,

Toronto

Empire 2-5751

,

Montreal Branch

507
Harrv

Place d'Armes

•

Tel. Victor 9-9261

Managing Director of Investment Dealers Association of Canada; Nigel Gunn,
Gouinlock <ft Co., Limited, (Toronto); John Penny, Royal Securities Corporation
Limited; Bob Macintosh, Bank of Nova Scotta

Gassard,

Bell,




7
V

aWWSW^ fW.fti

8

•iWi("4i,

*.

*

nl+«

t,

h-r

ft

*

i

y

PICTORIAL

4

The Commercial and Financial

Over llalf

a

organization is well prepared to

our

are

Thursday, April 28, 1960

Experience

investors interested in Canadian securities. Our
ices

.

50 years of experience in Canadian invest¬

over

ments,

.

Century

of Investment
With

Chronicle..

readily available

investing

to

serve
serv¬

institutions,

banks and dealers.
Direct private wire connections with affiliated offices
in

fourteen

principal

Canadian cities provide fast

and accurate service in Canadian
able

us

stock

to

execute

exchanges,

orders

securities, and

promptly

on

'

en¬

all Canadian
John

at

or

net

prices in United States

Donaldson, Jack Van Duzer, Pete Sutton, Bill Richardson, Russ
all of Mills, Spence A Co. Limited

Morrison and Fred

Thompson,

,1

funds if desired.

Wood, Gundy & Co., Inc.
40 Wall

im

Street, New York 5, N. Y.
Telephone DIgby 4-0633
Affiliated with

Wood, Gundy & Company
Members
The

Toronto

Stock

of

Exchange

Canadian

Montreal

Stock

Stock

Exchange

Exchange

■

and

Wood, Gundy & Company
Limited
Head

Office—36 King St„ West, Toronto i, Canada

Branches in the principal cities of Canada and in
London, England
Peter Robinson, Goodwin Harris A
Company Limited; Telfer Hanson, Hanson, Richardson A Co. Ltd.
O.
C. Robertson,
Banque Canadienne de Commerce; John Cathers,

McLeod,

Mason

&

Young,

Weir

A

Company

Limited

crysdale

LIMITED

GOVERNMENT SECURITIES

Members:

The

Investment

Dealers' Association of Canada

Manuel
J.

302

BAY

STREET

TORONTO
EMPIRE

I
Peter S.

We specialize
or

D.

Crysdale

Saunders

in servicing dealers by obtaining

placing blocks of Canadian listed

or

over-the-counter

securities.

Our
on

Monzon, Fraser, Dingman A Co.; R. M.
MacFarlane, Dominion Securities Corpn. Limited;
Dunkley, W. C. Pit field A Company, Limited; Sy
Spidle, Greenshields A Co. Inc. (Montreal)

1

6-8961

Bellman H. Mason
Marie

R.

Stanley Cox, Bankers Bond Corporation
Limited; Gordon
Lascelles, Dominion Securities Corpn.
Limited; Miles

Ryan,

Ross, Knowles A Co. Ltd.; Jack
Kernaghan A Co. Limited

O'Reilly,

Trading Department maintains firm markets

listed and unlisted issues in U. S. funds and is avail¬

able for all

types of dealer transactions.

TRADING DEPARTMENT

EMpire

6-5831

TELEX 02-2461

WISENER,

MACKELLAR AND

COMPANY

LIMITED
MEMBERS

THE

INVESTMENT

DEALERS'

MEMBERS

ASSOCIATION

THE TORONTO STOCK

EXCHANGE

OF CANADA

73

King Street West, Toronto I, Canada




Bob

Wisener, Joseph Robert, Bill Wilson
rrisener,

Mackellar

and

and Tony
Kyne, all of
Company Limited

f

w

*i»-<i«*»*«n

mvnr*«*

rlwH-WPrfUMylu (hf* T MWHf A

""

Volume 191

Number 5946

...

»

Wfll»M«MOUhAVUMUWMM^

4

* ru

,«««** •

K*iMX)m}ifttmj>rtWWrl •' i

*» 1, u

«Wff»>i <Mi"*nr»i n

,

The Commercial and Financial
Chronicle

PICTORIAL 5

CANADA—
Service
When
on

on

all Securities

require information or quotations
Canadian Industrial, Mining or Oil

you

any

security,
at your

our

research and trading facilities

are

disposal.

:

Monthly Bulletin

;

Request

on

Ross, Knowles &c o. Ltd. J"
Russell

Smith,

Bank

of

Montreal

Equitable Securities Canada
Deacon

(Toronto); A. A. Kirk,
Ltd.; Bus Moorhouse,

R.

Findley Coyne Limited

Members: The Toronto Stock

A.

Daly, Jr., R. A. Daly <fi Company Limited; Alex
Ramsay, Ramsay Securities Co. Limited; Harold D.
Stanley, Royal Securities Corporation Limited

25

ADELAIDE

Hamilton

STREET

Brantford

WEST

P. Lailley, Chairman,
Toronto Stock Exchange; Lyall
Wightman, I sard, Robertson and Co., Limited; Howard
Hunter, Equitable Securities Canada Limited

J.

E.

Choat,

Midland

Burns

Bros. & Denton Limited; E. H. Gunn,
Corpn. Limited; Peter Gooderham,
Wills, Bickle & Co.

Securities

of Canada

TORONTO,

Brampton

London

C.

Exchange

and The Investment Dealers*
Association

Sudbury

CANADA

Sarnia

Windsor

Niagara Falls, Ont.

Nesbitt, Thomson and Company,
Limited
355 St. James Street

West,

350

MONTREAL
MONTREAL

KITCHENER
REGINA

QUEBEC

TORONTO

SAINT JOHN

BOSTON

OTTAWA

PETERSBOROUGH
CALGARY

PREDERICTON

C

Canada- Wide Bond

HAMILTON

BARRIE

EDMONTON

NEW YORK

Bay Street,

TORONTO

LONDON, ONT.

GODERICH

WINNIPEG

VANCOUVER
MONCTON

VICTORIA
A

HALIFAX

LONDON, ENGLAND

ZURICH

Trading Services With

Affiliates in New York, Boston

and Zurich

Nesbitt, Thomson and Company, Inc.
25 Broad

Street,

NEW YORK 4, NEW YORK
Leslie
&

Scott, Ross, Knowles & Co. Ltd.; Donald Clarke, Fry
Company, Limited; Doug Armour, Brawley, Cathers & Co.

Mickey McBride, Midland Securities Corpn. Limited; Belman
Mason, Mason & Crysdale, Ltd.

MEMBERS

ALL LEADING

Canadian

CANADIAN

STOCK AND COMMODITY

Securities

SPECIALISTS IN CANADIAN

EXCHANGES

SECURITIES
COMPLETE

FACILITIES

THE

INVESTMENT DEALERS

FOR

CANADIAN

STOCK

Burns Bros.

ASSOCIATION




AND

BOND

OF CANADA

TRADING

&

Denton

Limited

Burns Bros.

James Richardson & Sons
EXECUTIVE

OFFICES

-

&

Denton

Inc.

WINNIPEG

ESTABLISHED 1857

44
OFFICES

FROM

King Street West,

2

MONTREAL TO VICTORIA

TORONTO 1

MONTREAL
WINNIPEG

Broadway,

NEW YORK 4

VANCOUVER
HAMILTON

OTTAWA

rtM

9t

<-

rr*

«*

nhwrt fwwfcf

tt^WKWWlP»tMf*jraj5T#>u iwmv*****™

?■>

PICTORIAL

The Commercial and

6

Financial Chronicle

,

.

.

Thursday, April 28, 1960

Dealers in

Government Bonds

SAUNDERS, CAMERON LIMITED
FIFTY-FIVE

YONGE STREET

TORONTO

1, CANADA

Walter

Wilson,
EMPIRE

TRADERS IN

Lund, Bank of Montreal (Montreal):
Dominion Securities Corpn. Limited

Russell Smith, Bank of Montreal (Toronto); Howard
(Toronto); Bill Small, Bank of Montreal (Montreal)

6-8601

—

INVESTMENT TYPE
BONDS & SHARES

J* R* Meggeson & Co♦
LIMITED

BUILDING

BANK

ROYAL

TORONTO

THE

MEMBERS:

DEALERS'

INVESTMENT

G. D. Little, Dominion Securities Corpn. Limited; Bruce Maxwell, Dominion
Ed
Burke, Dominion Securities Corporation (New York City);
Bank of Montreal (Toronto)

1921

ESTABLISHED

ASSOCIATION

OP

Securities Corpn. Limited;
J. Russell Lewis,

CANADA

Brawley, Cathers & Co.
Members
'

Investment Dealers* Association

Toronto Stock

of Canada

Exchange

■ft
CANADIAN
Harold

GOVERNMENT-MUNICIPAL-CORPORATION

Jim

Irving, Dominion Securities Corpn. Limited; Buck Campbell, Burns Bros. <ft Denton, Limited;
Carnegie, Wisener Mackellar and Company, Limited; Don Erwood, Harris & Partners Limited

SECURITIES

CANADIAN

BANK

COMMERCE

OF

EMPIRE

BUILDING

3-5821

TORONTO

bell, gouinlock & company

Saul Leese,

LIMITI0

BSTABLISHED

25 KING STREET

Bache & Co.; Ev Overgard, Bache & Co.; Richard Mothersill, Adams, Reid Ltd.; Walter
Reber, Davidson & Company; Rus Hutchison, R. A. Hutchison & Co.

1920

WEST, TORONTO

UNDERWRITERS AND DISTRIBUTORS OF
CANADIAN

GOVERNMENT, MUNICIPAL

AND CORPORATE SECURITIES

AFFILIATES

BELL, GOUINLOCK & CO.

LEGGAT, BELL, GOUINLOCK

INCORPORATED

LIMITID

74 Trinity Place

Members Montreal Stock Exchange

New York

Montreal
John

1 I




Anderson, A. E.Ames & Co. Limited; Ralph Browning, Wisener, Mackellar and
Lirrtited; Homer Dunn, Dominion Securities Corpn. Limited; H. B. Gilbert,
Wisener, Mackellar and Company Limited

Company

Volume 191

Number 5946

.

.

.

The Commercial and Financial
Chronicle

PICTORIAL 7

lBC*

Spe»cc

MiUs.

Canaan

US

James

Anne"'
McINab, Canadian

Bank

of

BROADWAY

yqrK 6,

N.Y.

affiliated with

le
Cunn
giNBeit
,deCouinlock
timiL &
Company, Limited) S. A.
Commerce; Alan Markham, Toronto-Dominion Bank

u"w™'ENC'

—7
s®

Ced

& Co.

SP®»

>|itnor.

■SSSf"^

Ritchie, Bank of Nova Scotia (Toronto); Ralph
Henderson, Bache & Co.; Arthur Crockett, Bank
of Nova Scotia
(Toronto); Hugh MacKay, W. C. Pittield &
Company Limited

Underwriters

.

.

Distributors

.

.

Government of Canada Bonds
Provincial and

.

Dealers

.

Treasury Bills

Municipal Debentures

Corporate Bonds and Shares

EQUITABLE SECURITIES CANADA LIMITED
Member of The Investment Dealers' Association
of Canada I

EQUITABLE BROKERS LIMITED
Harold Cameron, Saunders Cameron Limited;
Ray Hicks, O'Brien &
Cameron

<£

Co.;

A1

Pucknell,

O'Brien

&

Member
Williams; Hank Smits, Saunders

of The Toronto Stock Exchange

Williams

Head Office
60

Yonge Street, Toronto, Canada

MONTREAL

17. S.
Direct

HAMILTON

•

KITCHENER

•

Subsidiary: Equisec Canada Inc.

private wire with

Goldman,

Sachs &

Co.,

New

York

Hal Murphy, Commercial & Financial Chronicle (New York
City); Jim Cadman, Royal Securities
Corporation Limited; John Dolan, James Richardson & Sons; Neil Edwards, James Richardson & Sons

pH
F,H

DEACON**
t

.

m

Bu""

• *

kn

DEACON

1

Established 1897
ct0Ck

Exchange,

FINOLEY

COYNE

limited
Members

Investment

GoviroBtot,

197

Ernie




Jarvis, Jim Carnegie, Bryan Benitz and Don Brass,
Wisener, Machellar and Company, Limited

all

of

BAY

Dealers' Association of

Canada

Municipal and Cwporobon Bonds

STREET, TORONTO,

CANADA

The Commercial and Financial Chronicle

.

.

.

Thursday, April 28, 1960

§
Annett &

Company Limited
Member

The Investment Dealers' Association of Canada

Security Underwriters
;

■

:

|.

,

>

Stock and Bond Dealers

v

;;v''

..

Cam

Annett Partners Limited

Seagram,

Wood, Gundy A Company Limited; Bob Slllcox, Harris A Partners Limited;
Moss, Lawson A Co. Limited; Phil Holtby, Doherty Roadhouse A Co.;
Ron Mills, Moss, Lawson A Co. Limited

Don

Laws on,

Member

Toronto Stock Exchange

220 Bay Street

Telephone

Toronto, Canada

EMpire 3-7361

Canadian
Government

Municipal

-

Ivan

Younker, Bank of Nova Scotia; John Clarke, Wills, Bickle A Company Ltd.; George Mills, Royal
Securities Corporation, Limited; Edwin
Robertson, Wills, Bickle A Company Ltd.

and

Corporation Securities

Isard, Robertson

and

Co.

LIMITED

Members

Investment

Huron & Erie

Dealers'

Association

Building

of

Canada

159 Bay Street

London, Ontario

Toronto, Ontario

Harold Jarvis, A. E. Ames A Co. Incorporated

(Toronto);

Tom

Ormesher,
A.

Canadian

E.

A. E.
Ames

(New York); Ken Murton, A. E. Ames A Co. Limited
Ames <fi Co. Limited (Toronto); Fred Blain,

A

Co.

Limited

(Toronto)

Government, Municipal

and Corporation Securities

anderson

&

company

LIMITED

Members
The Investment Dealers' Association

DOMINION

BANK

BUILDING,

of Canada
TORONTO

Telephone EMpire 3-8103
A. L. Howard

M. D. Cox

Montreal

Telephone

—-

J. R. Denton

UNiversity 1-0111

George Wilson, Equitable Securities Canada Limited; Bud Boyer,
Equitable Securities Canada Limited;
Cam Lipsit, A. E. Ames A Co. Limited
(Toronto); Jim Wilson, A. E. Ames A Co., Limited (Toronto)
4 m

v'f




Volume

191

Number 5946

.

.

The Commercial and Financial Chronicle

.

(1849)

AS WE SEE IT

come

inequalities. In particular, they reward handsomely
scientists, teachers and the more skilled
factory workers. But while they have been devising spe¬

Continued from page 1

their

.

prevailed

as

during

•'

.

^

the

i

recessions

of

«I

the

postwar

period."

managers,

cial incentives to
spur

Better Look Ahead
For

our

"benefit"

part,

from

recessions

we

far

are

from

practices of

convinced

believe it to have been, but it is

appears to

fact that

a

shall be much less at

cessions, real
of payments

that

the

problem is

our

"Can it be that the Russians have
rediscovered one of
the main secrets of Western economic
success, while we
have allowed our idealistic

we

impulses to obscure the

liberty to deal in this way with re¬
feared, in the future assuming the balance

or

productivity, thereby adopting the

older capitalism, we have
adopted a tax
system that weakens the incentive to create and produce.

arbitrarily cheap money during recent
as
great as the distinguished gentleman

was

of

our

own

"The

not solved. And since

"compensa¬
tory spending" (for which read
priming the pump) is
closely allied if not dependent upon such a credit
policy,
we

question

is

one

ican should
try to answer."

well find that

therapies

of the other favorite

some

not

are

available

so

In

'that every

intelligent Amer-

evidently, is a situation we must not neglect. To assure
against belated realization of what has been
going on, and against even more foolish and ineffective

It is this
suggestion of the

importance, not to

be done

can

to

now

positions to resist the

recession.

We

pass

his

over

oft-repeated suggestion that alterations be made in the
so-called full
employment act to make price stability spe¬
cifically one of its objectives, his insistence upon more
and
bigger unemployment benefits, and tax reduction in
the face of

deficit

a

depression and in all probability with

already in effect. He does

to be feasible for

us

to do

and for

this

as

enough in the

essential is

to control their

costs

competitively.":;

that

so

same

that

and

time, it

$3.2

several

and

company

its

way

they

price their

can

Mutual

Life

Connecticut
Co.

ance

of

the

Noel

Insurance

The

&
&

Co.

Co.

the

private
was

and
;

addition

from

Stone &

Youngberg

the

With

Admit Partners

SAN

Cruttenden, Podesta

insurance company loan

FRANCISCO,

Calif.—Omar

due

for

&

program

members

the

of

Pacific

Stock

that

Coast

Exchange, have announced

Richard

been

Everett

D.

admitted

to

Williams

dent manager.
Mr. Brubaker
ated

a

A

has

been

associ¬

the

DURHAM, N. C.—Harvey C. Elli¬
ott

has become associated with J.
Peeler Company,

Southern California Gas

R. S.

Company.

Inc., Trust.
Building. He was formerly with
Hays & Co.

MAJOR FACTOR

in

developing the

Intermountain West
MOUNTAIN FUEL SUPPLY COMPANY
Salt Lake

issues is only the most
notorious, will stand no economic
test that I know of." This seems to
us to make real sense.
Is there
good

In

willheed it? We

Company

..."

v/v v

wish-we;could

see more

"•."Use of Resources •■'-

powers

C/ty, Utah

v-;

■

rapidly expanding Utah-Wyoming

area,

the

that be

evidence of it.

82 communities and

now serves

than 1 65,000 customers

;■

The speaker then turns to the
question of better and
more effective:, use of our resources..
He

—

more

in the production,

•

r

pays

to the notion of

of

means

wish that
cal world

his respects

transmission and distribution of Natural Gas,

promoting the growth of our economy by
government spending—and we find it easy to
a
good many of the influential men in the politi¬
today would heed what he has to say: *

Highlights of 1959
(and comparison with 1958)

"Apart from the critical question of how the govern¬
funds, it surely must make

1959

ment will obtain the additional
some

difference to

our

nation's rate

of

Total gas revenues

growth how ;the,.

Net income

funds ar$. used-wwhether
they are spent, for example, on
fancy school buildings or on better education for our
children; or to cite another example, whether

they are
lifting the price supports, which are already a
drag on the efficiency of agriculture, or on improving the
mobility of goods and people within our large cities,
where traffic
congestion is reducing efficiency all around.
spent

"It

surely
future

must also
rate

of

make

some

difference

growth whether

to

the obsolete

retained;

building codes of

and

whether

the

many

work

of

our

week

afford to ignore or
forget:

in

industry

is

citizen of this

share.

19.44

18.87

165,663

155,444

J935.

Listed

1959 Annual
sent upon

paid each year since its organization
on
Pittsburgh Stock Exchange.!

Report will be

request. Address:

natural

fjj

/■A'.'l i>.x

Secretary, Mountain Fuel

Salt Lake

country

City 10, Utah

can

reality that these terms are intended to denote
keeps changing. From what I can learn, the Russians have
in recent
years been very methodical in creating
large in¬




1.20

Supply Company, P. O. Box 989,
no

"The stability of our
vocabulary can mislead us. We
keep speaking of capitalism, socialism, and communism,
the

1.57

1.20

Number of customers.

Dividends hdve been
in

.

3,438,800

1.77

our

cities will be

further reduced."
And then words which

share.

Book value per

3,871,619

share.

$26,088,644 '

featherbedding

practices, from which business managements are not en¬
tirely exempt, will continue with little change; whether

but

Dividends per

on

nation's

.

Net income per

1958

|

$28,528,855

.

serves

best...costs Iess

MOUNTAIN FUEL SUPPLY COMPANY
180 East First South

,

Joins J. Lee Peeler

Lee

in

the firm.

with

and working capital.

(Special to The Financial Chronicle)

brokerage
firm
since
August, 1959. Mr. Wilson
was formerly associated with
the

have

partnership

appointed

registered
representatives of Cruttenden, Podesto & Co., Russ
Building, ac¬
cording to David S. Tucker, resi¬

M. Bartle, Ralph E.
Brown, Edward W. Burnett, David
E. Hartley, Edwin A.
Wells, Jr.,

and

been

sale

long-term Treasury

ground for hoping that the

by

Alstyne,

of $3,000,000
of
subordinated deben¬
in 1975, will provide
Highway Trailer's expansion

tures,

J. Brubaker and Walter E. Wilson

under careful examina¬
[We wonder what part—Ed.] Other parts,
however,
on

Van

,

to raise costs and

ceiling

placement

negotiated

to

price supports, interest rate ceilings, wage
regu¬
lations, trade union immunities, import duties,
import
quotas, stockpiles, and subsidies which have tended either

of which the interest rate

and

Insur¬

convertible

have

FRANCISCO, Calif.—Stone
Youngberg,
Russ
Building,

wares

and will stand
up

Co.

Life

discharging the
obligation, the proceeds

recent

SAN

work of

public interest

the

together with those obtained from

We need "to be
more(energetic in using the powers
of government to maintain and
enhance the forces of com¬
petition. We have evolved over the years a vast
patch¬

tion.

6y2%
of

wholly-owned

General

notes

Allen

In

'

prices or to prevent them from falling.
Some parts of this
protective apparatus no doubt serve the

notes

operating
subsidiary,
Highway
Co., due April 1, 1975, had
placed with Massachusetts

Trailco

large
going
of reducing

an

made

was

million,

been

a

enlargement of exports,
"American producers must be able

purpose

the

not think that it is

foreign aid of any sort in the early future to cure, or even
to
mitigate greatly, the balance of payments situation.

What he regards

our

say

place ourselves in the best of

next

of

so

^

what

many

now.

the
necessity, of being prepared in advance against such a
contingency that renders the message of Professor Burns
particularly noteworthy — even though it may not be
always quite possible to agree with his proposed
program
a]t all points.
V
'
At any rate, he
emphatically raises the question as to

At

these.

as

anti-recession programs than in the
past, we had better
be giving such matters as
these very careful

Corp. was announced on April
by Highway Trailer Industries,

Inc.

Trailer
so

that

ourselves

thought

become

balance of its obligation to Trailco

25

joint

day and time when

have

Settlement in full of the
$2,250,983

known

leading
Keynesian or so something
they have difficulty in getting their feet within hail¬
ing distance of the ground, it is heartening to have Pro¬
fessor Burns,
indisputably a peer of the best in the intel¬
lectual world, warn the
country at large in terms such
economists

anti¬

before. Here,

as

this

H'way Trailer '
Completes Loan

source

great achievements?

t

may
recession

25

Salt Lake

City 10, Utah

26

The Commercial and Financial Chronicle.1.

(1850)

Now

We Must Expand Our Output
To Be

Competitively Strong

well

in

ties
that
go
with a high and
rising standard of living. We can
expect better housing, food and
clothing.
But
we
expect
also

years

better

transportation, education,
services, and a greater

medical

diffusion of these services among
all

the

people.
figures

Whatever

we

tons

of

put

may

these expectations in

on

terms of

output, numbers of class¬

miles of highway, and so
I believe that most Americans
would feel that something like a
rooms,
on,

50%

expansion in the output of
things people want and need in
the
able.

It

like

looks

achieve.

can

to remain

important,

such

expansion

competitively strong in
with

contest

our

reason¬

something we

Equally

achieve

must

we

sounds

decade

next

the

non-free

Importance Keeping Economic.
Freedom

These

are

the

decade

But

we

We
a

few of the perform¬

a

goals which

ance

we

just entering.

are

we

must go

step further.

one

realize

must

for

see

can

these

goals in

framework of economic freedom,

not

of

one

and

more

ernment control. But

The

scribe
In

best

term

"freedom

is

I

choice

free to

are

more

gov¬

just what do

it

free

a

uals

know

choice."

society

individ¬

work where

to

invest

to

save;

not

or

to

invest.

without

stricting the

than

Soviet

consumers

shirt, and

to

over

shirt

realize.

us

for

free

are

item

white

a

of

many

Russia,

consumer

example,

choose

one

another;

or

to

colored

a

But this freedom

so on.

extends only to the

goods

all-

an

powerful

government sees fit to
produce. In a truly free choice so¬

ciety, the consumer is
actually chooses which
in

what

amounts,

king; he
products,
to

are

be

produced. Producers automatically
respond to these wants; if they

they

not,

markets. In

a

lose

would

their

free society the con¬

a

in'effect, directs produc¬

sumer,

tion

into

the

lines

he

desires; in
controlled, centralized economy,

the

is

consumer

the

the

servant

of

our

highly significant feature of
free choice economy is decen¬

tralization. This is

one

of the most

valuable

assets of a competitive
enterprise system. As Washington
once
remarked
in
a
letter
to

Lafayette,
varied

as

tralized

"Men's
their

use

men's

of

from

initiative

one

with

make full

can

of

It

can

centers

against the single

all-embracing

state.
Room
can
be
found for "crazy
ideas" that might never withstand

scrutiny of an entrenched bu¬
reaucracy. Edison's famous dictum
—"There is

Find

a

way

it,"—sums
our

onment

to do it better.

up

the

stimulus

free

has

enterprise envir¬
provided for many

million of young Americans.
The
ment

size

of

operations

present govern¬
the degree of

—

centralization that has already oc¬
curred
in this
country — is not

well understood. This should
'be put in perspective. Today, the
total receipts from taxes and other
revenues
of
all
governmental
units—Federal, State, and local—
amount to a figure equal to almost
one-third of our entire national
income.
This
compares
with a
ratio of something like one-eighth
very

in

re¬

have full

can

It has

itself over 170 years of
experience to be the best in the
proved
world.

We

has the

convinced

are

that

it

greatest productive poten¬

tial in the world today.
In

of value in which future commit¬

ments

whether these
financing an
automobile or advancing funds for
a
space vehicle which may have
a planning and construction
cycle
of many years. Growth requires

freedom

enjoy. We
have had to recognize and accept

the

we

disciplines which will
of

survival

the

assure

freedom

in

the

midst of rapidly changing circum¬
stances.
"The
art
of
progress,"
Alfred North Whitehead

once said,
amid change,
and
to
preserve
change
amid
order." If we reject, as we do,
the controlled economy with its
rigid suppression of individual in¬
itiative, then we must be willing
to accept without compulsion the
disciplines which are the price of
"order
amid
change."
Nothing,
Justice Cardozo has said, can re¬
lieve a free society of the pain of
choosing at every step.

Outlines Choices Facing Us

What

1929, about one-fifth ten years

Jater, and a little over one-quarter




choices facing us

the

are

What disciplines are re¬
of us in making these

today?

quired
choices?

major issue revolves around
maintenance of the integrity of
our money. In the rapidly chang¬
ing international economy of the
postwar world, the soundness of
the dollar has attained an impor¬
which

all

is

absolutely new in
this country. We can

the

back

way

the

to

this Nation in 1789
parallel—no period of
which we can say, "Well, we were
here before and we can get out
of

founding
and find

of such

no

What
world

is

same

way

unique

about the

of

the

United

the

tain
the

the

become

It

major

reserve

for the entire free world.
As such, it serves as a vital sup¬
plement to gold in providing the
international liquidity that is in¬
dispensable to a high and expand¬
ing volume of world trade.
What

ever

this

does

in

mean

terms

current international

our

It

means

this. If

we

posi¬

should

policies the effect of

pursue

which would be to impair the re¬

characteristics of the dollar

serve

—if

ever

tion

should permit infla¬

we

its

reduce

to

relative

to

value

foreign

unduly

currencies

—

then we will have-impaired the
liquidity position, not just of the
United

States

world.

free

but

We

of

the

entire

will have

weak¬

ened in greater or

economies

tions

of

less degree the
and the trading posi¬
virtually every nation

outside the
in

Soviet

bloc.

short, have suffered

dous

freedom

This
in

in

setback

tween

new

the

the
and

We

will,

tremen¬

a

struggle be¬
oppression.

position of the dollar

international

economy

simply adds weight to the

urgency

here at home of maintaining mon¬

etary descipline.
A

rate

the indispensable elements of eco¬
nomic progress. This country has
very

satisfactory

progress,

because both businesses and
sumers

have been

That

No

deterioration
dollar

is

desired

by

some

the

of

the

impor¬

very

of

we

few that

undertake

can

amount

Yet

value

really

we

self-evident

so

truisms.

in

not

that

tant,

any

government

spending in order to force growth
or
expansion in a given area no
how much
the economy

matter

be thrown out of balance in

may

the process.

■ .**
' /' T
'. /"
the emphasis is on
bigger
military
programs.
For
others, it is increased civilian fa¬

For

.

some,

cilities

on

the

belief that

and

our

citizens

acted

can

in

be trusted, in the long

channel

generation

the

has

of

Nation's

been

re¬

justified.

Americans

has

and

been

sound.

still

put on expansion in
supply. And finally—

within

the

the

government

area

have the
for nonmanagement of our

Treasury must
flexibility
it
needs

—

of;'emphasis, not al-

degrees
with

wavs

regard

proper

the

to

inflationary strains which may be
put on our productive and finan¬
cial
mechanism, ' and
they
are
sometimes urged
without suffi¬
cient consideration of the damage

tions

of

freedom

tralization,
Federal

of restriction

tor

particularly
has

the

cen¬

at

many

economy

of

area

.

thing

one

undue

the

sources,

occurring in the private

of

the

by

and

sec¬

some

in

""government. But'tof

we

can

*be

fiscal

sure:

responsibility — a
balancing
of
governmental outlays against gov¬
ernment income over a period of
time, with some attention to re¬
ducing the debt—is one absolute
essential to maintaining the value
In

short

the

more

of

run,

anything

can

have

decide

on as

we

we

target point of government ex¬

whether this is
some type of civilian

penditures,
fense

or

de¬
pro¬

gram. But in the long run, neither
existing government programs nor

other type of productive ac¬
tivity can be sustained without
regard to maintaining a balance

any

various types

the

between

of

ac¬

tivity in our economy, public and
private.
Certain things, such as
our military security and essential
civilian services, we can agree on
as indispensable. But after that we
must
exercise
the
discipline to
determine how many of the de¬
sirable things we can afford to
do at one time without courting

debt management

on

If

freedom,
there is no way to avoid making
difficult choices. But in making
we

to

are

these choices
in

which

though
afford
We

there

the

rich
to

preserve

two

are

United States,

in

resources,

mal^e major

must pursue

areas

even

cannot

mistakes.

appropriate for¬

eign

policies, backed up by an
defense. We must also
follow prudent financial and eco¬
nomic policies so as to assure the
adequate

balanced

development
and

confidence

of

in

abroad

of

our

undermine the
people
here
or

not
the

value

of

our

gram,

bonds

market rates on longwere
higher
than

4V4%, all of the Treasury's financ¬
ing was forced into the under-5year maturity area by the exist¬
ence
of this regulation. The true
savings market, made up of insti¬
and

consid¬

for

funds

erable periods

of time, had to be
by-passed entirely so far as. new
marketable issues were concerned.

Instead, all pew offerings had to
be

placed with short-term inves¬

tors

large, took on
a repository for

who, by and

their holdings

as

temporarily jidle furidsr!:,;
Next to printing press money,
short-term
most

obligations

inflationaary

devised.

past

of

tvpe

Treasury has had
borrow, and

the

choice. We had to

had to borrow at short-term—

we

greatly
complicating
our
problems and those of the
eral

Reserve,

essential
ment.

The

Policies
Rate

and

Interest

Ceiling

authorities

petent

for

job of

are

to do

a

com¬

monetary manage¬

lit

»

■.

i

!

first

the

even

fact

*ii •

time.

But

significant is

more

that prospects are
a

growth than they have been at
any time in the past two decades.
is

This

It

reflects

the

Ameri¬

accident.

no

of

determination

the right
choice, both in their private af¬
fairs
and
through their elected
representative
in
government.
people

make

to

share.- An additional 14,000 shares
have

previously been reserved for

certain /persons whose names have
been furnished
by the company
or

who

of

the

cies.

The budget which the Presi¬

dent

has

the fiscal

1961 means that, with busi¬
ness
activity strong, we can not
only meet our important domestic
and international responsibilities,
year

also

but

somewhat

reduce

developments

have

a

special meaning for the American
citizen
who
purchases
savings

thousands of
who promote their sale.

and

bonds,

volunteers

is

United

States

the

truly

kind

best

purchase,

Savings

Savings
is

easy

its
to

the Payroll
the Bond - a -

either

Plan

It

Bond

of

product

world.

the

in

the

for

on

or

Month

Plan; it is redeemable upon
demand; and it is absolutely safe
as to principal and interest. With
the

increase

interest

in

the

to

sells

(1)

consumer,

(2)

ar¬

supplied,: at
his
request, > with
foods by independent contractors,
and; (3)"'finances time payments
by the purchaser of the freezer.
The net proceeds

from the sale

of 150,000 shares of common stock

offered, after deducting

now

ex¬

will be $478,770 and,. as
currently estimated, will be used:
penses,

to be added, $258,178 to the

working capital of the
to restore partially the
position
which
has
been
seriously impaired by the neces¬

company

cash

sity of depositing substantial cash
reserves aggregating $307,180 with
financial institutions;
(b)

tal,
a

last

rate

additional

realize

to

capi-<

$132,500, sufficient to enable
wholly-owned
subsidiary
to

purchase

time payment

consumer

obligations
from
the
company,
thereby enabling the company to
discount
ment
the

of the retail instal¬

more

sales

received

contracts

by

from the sale of its

company

products;
(c) to discharge an aggregate of

in short-term, indebted¬
such loans having been in¬
curred since Dec. 1, 1959, the pro¬
ceeds therefrom
being
used
to

provide additional working capi¬
tal.

Now With Shearson,

Hammill in San Fran.

the

huge national debt that we have
built up in years gone by.
These

,

to have the freezer-owner

ranges

ness,

adoption of sound and
fiscal and monetary poli¬

the

proposed for

"

^

that

business

tegrated
freezers

sible
tested

employees or relatives

are

underwriters.

$88,092

Calif.—Shear235 Mont¬

SAN FRANCISCO,

Hammill & Co.,
gomery
Street, have
son,

that

Louis

Dr.

G.

announced
has

Layton

joined their San Francisco office
in the Russ Building as a Regis¬
tered Representative.
Dr.

the

Layton has been engaged in

security field

since

since 3 958 has been

office of
has

He

the

the

in

representative

1951

and

investment

an

LaJolla

Shearson, Hammill & Co.
served on the faculty of

University of Southern

fornia's

School

Cali¬

Commerce

where

significant that the buyer can

domersky in Austro-Hungary, he
was
assigned by the Hungarian
government in 1935 to the Na¬

rest
are

that

assured

as

a

now

Nation

we

dedicated to the proper public

policies to combat inflation, thus
maintaining the real value of his
Individual

dollars.

pur¬

of

savings bonds not only
represent an act of good citizen¬
and

support

serve

to

as

sound

an

debt

important
manage¬

he

of

autmun, E and H Savings Bonds
pay a fair and competitive
rate of return. And it is highly
now

courses

Born

tional
was

of

in

gave
post
graduate
security analysis.

Statistical

erigaged

in

economic

G.

Louis

Baron

de

Board where

La-

he

development

the

for presenta¬

studies

tion to the League of

Nations. Im¬

mediately prior to World War II,
following

a

two-year

with the Hungarian

assignment

Price Stabili¬

ment;
they also represent safe
and profitable investments for the

zation

American

industry to become vice president

To

realize

surely
the
and

saver.

the

within

progress

that

is

capability in
1960's will require a strong
enduring public sentiment in
our

support of sound financial policies

hard
boom

period when restraints

well

may

common

This determination has made pos¬

This too may present some
choices
particularly in a
—

136,000 shares of Tenax, Inc.
stock (par 10^) at $4 per

27,

better

long period of healthy,
rewarding, and non-inflationary
today for

the

York

New

general

1960's

1960

\

ship

While prudent

debt manage¬

Prosperous

'

perhaps

;

Lomasney & Co., of
City, offered on April

A.

Myron

(a)

dollars

the

Stock Offering

as

sound

year

chases

Fiscal

for

own

promises to be
the most prosperous in our his¬
tory, uwiTiT
with total output of the Nation
exceeding
a
half
trillion
,

Tenax, Inc.

■-

Sees

13, 1960.

Tenax, Inc. and its ten whollygov-*; owned subsidiaries operate an in¬

Yet

year

New York City, April

the

are

financing which can be
during most of the

ernment

address
by
Mr.
Anderson • at
Treasury-Industrv Top Management
for Payroll Savings Bonds Pro¬

*An

the

individuals who wish

their

invest

to

invested

currency.

achieved.

when going
term

The

disastrous inflation.

our

Meeting

can

dollar.

the

of

existing 41/4% interest rate
ceiling
on
government
bonds.
During most of the past year,

institu¬

our

level.

Inflation
some

done to

public interest in the conduct
private affairs. With the
qualities
of
responsibility
and
leadership we have always been
able to count on in this country

the

—the

Fed¬
well as adding
to inflationary forces in the econ¬
omy. It is our earnest hope that
Congress in this session will act
to provide the flexibility that is

ing

,

Thursday, April 28, 1960

.

when
important
issues
are - at
inflationary
.stake, I have faith that our per¬
huge public debt.
We have recently had an illus¬ formance goals for the next dec¬
tration of the effects of one type ade can and will be brilliantly

of programs are urged, with vary¬

ling resources, but in the long
choices have

be

to

money

no

ment.

run

the

services.-, Certainly
these
are
undertakings of high
merit and desirability; Both types

shown perfect wisdom in channel¬
the

seem

almost

being told

are

have

tutions

serve

consumer

to

would indeed be in seri¬

be

to

con¬

save.

our

trust

the

run,

willing to

gamble,

a

trouble.

These facts
as

country ever
speculate is

to

is

save

their

in the right direction.

have

sources

but to

this

that

that

now, will re¬
the future. If

in

fiscal policies are
of major importance in maintain¬
ing confidence in the dollar, they
cannot do the job alone. We must
also accept the disciplines which
are
required if our Federal Re¬

We

general

of

feel

to

economy

high rate of saving and a high
of technological advance are

enjoyed

people

economy

dollar

currency

of

believe

value

safe

a

has

must

their

came

new

dollar?

States

with

dollars, if set aside

of

position

that

is

situation the

a

time."

this

people

that could be

A

look

made,

are

concerned

capital—capital must come from
the savings process—and to save,

period of our history

every

the

tect

rate

rapid

confidence in the dollar—the unit

ous

have had to work hard to pro¬

we

the

which

can

excep¬

minds.

as

as

decen¬

for

millions

the

of

are

A

system,

rewards

achievement,

benefit
of

minds

faces."

economic

exceptional
tional

trend

We believe in our system.

tion?

state.

A

been

harmfully

initiative and choice

tance

did

has

play.

the history of

and

past 30

in which private

area

broader

buy

the

this

far

how

continue

The implications of freedom of
consumers'
choice
are
much
In

;*'i

percentage

ourselves

de¬

to

of

they
choose; dispose of their property
_as
they see fit; and use their in¬
comes
as
they see fit. They are
free to spend for consumer goods
or

the

In

steadily mounting. We need to ask

by economic freedom?

mean

we

1940's.

"is to preserve order

world.

»

late

the

of saving, as
technological ad¬
depends very heavily on

vance,

are

Continued from page 3

high

a

as

.

on

the
as

part
a

of

government, as
continuing regard for

and

Board,

he entered

managing

director

private

of

the

Transportation Company of Buda¬
pest. Upon occupation of Hungary

by the Nazis, he entered Bavariaand

in

1945

joined

the

States Army in Europe.

United

Volume

191

Number

5946

The Commercial and

.

.

.

Financial

Chronicle

est

•d'

Improving the Evaluation
Of Stock and Bond Yields

of return

rate

the

(1851)

degree

safety desired for
a particular fund.
Securing capital
gains is desirable, but it is not the
touchstone of
portfolio manage¬
ment. How can portfolio managers
discriminate

Continued from page 9

dividends.

in the internal revenue
code and accounting practice will

period 'upon which to base the
past rate of growth, and therefore,
the rate of growth itself will be

changes

introduce further problems in de¬

the

termining the

consistency of the
concept of net income used by
corporations. It is probably be¬

the

yond

ability

of

analysts

of

of

such

a

unavailable

few

and

market

if

f-j

The traditional method of

com¬

puting the dividend yield on
mon
stock; is - of
limited

com¬

fulness

because

projected

are
f,.

pasL

at their

jected
in

f?3

run.

ings

and

rising

is

one

book

dividends

level

yield

it
of

is

the

on

tra¬

of

terms

dividend

dividend yields

However,

customery basis are no
measure of the long run dividend
yield after considering rising
dividend

streams.

market

de¬
wish
handicap his income projection
prices

scribed.2

has

as

The

been

analyst

may

particular stock for the
gree of certainty he has in
projection.
Alternatively,

de¬
the

a

as¬

of

Uses
;

analyst may
chase

decide that

should

be

earn

such

pur¬

return.
Tables
computations

will be described in the final
tion

of

these

it

than some

more

of

rate

facilitate

to

no

unless

made

sec¬

remarks.

There

of the

ternal

the

the

code

dividends
rate

as

of

still

weaken

rate

past

growth.

t h

a

individuals

t

posit

may

as

'

1

I believe that the correct method

of
is

computing the

dividend

discount the

to

which

dividend

price.
that

rising dividend

in order to determine that

stream

rate

yield

Three

have

this

equates

stream

the

and

of

the

rising
market

projections

been

prepared on this
reported below. In the
D-J Industrials, divi¬
dends have been rising at the rate
of about 6.25% compounded an¬
nually.
This
rising
dividend
stream was projected for 15 years

basis,

are

the

of

case

and leveled off after that. On this
basis I computed

yield

be

may

used

interpretation,
port¬
selection, the computation of
of

cost

stock

common

and

budgeting,
to

cases

name

in

for

utility

few

a

that

readily to mind.

set up a

straw

ceed

knock

most

Alternative Method of Computing
Dividend Yield

right; it

own

It has not been my

working hypotheses.

'

been describ¬

market

come

great range of growth patterns

a

its

rate

guide to the
There is

a

uses

yield calculation

type I have

capital

growth

of

possible

many:

Natural Gas

ing. The calculation is interesting

folio

revenue

are

for the dividend

in

of

amount

and

of the Alternative Method

per
J

to

intention to
and then pro¬

man

down.

it

Certainly

analysts recognize the rising
share dividends or the an-

ticipated dividends for

some near¬

by future period of time and
these in their

use

published
calculations of dividend yields and
stock

private

market

that

many

or

The

forecasts.

well

known

fact

growth

of

growth

of

recognition by in¬
probable rate of

the

dividends on common
stock. The attempt here is to give
this recognition of rising income
streams
lation

systematic formu¬

more

a

increase'/its

and, ./thereby,

usefulness.

that the dividend

The

method

*

of

dividend

D-J

Industrials

close to 600.

their market prices is certainly in¬

In

second

experiment I assumed

worthwhile in its
attempt to ob¬
serve and express what is occur¬
ring in more careful and more
meaningful terms would seem to

a

that

the

would

dividends

projected

rise

at

6.25%

for 25 years

fci

and

i

projected dividend stream with

found

D-J

that

Industrial

7%

equated

a

about

of

Average

the

rising

be

it.

15 years,

3% for another 10 years,
and projected them as level there¬
after.

7%

In

this

later

case

a

rate

of

equated the dividend stream
the D-J Industrial Average
608.
:
i

with
at

In each of these three

dividend

yield

It should be
tion

the

of

dends is
The
30

to

the

cases

above.
noted that my projec¬
period of rising divi¬
or

the conservative side.

on

dividend

Industrials

lated

6.4%

was

yield on the D-J
as
usually calcu¬

ranged between about 3.00
during 1959. I believe

3.50%

that

this

method

understates

calculation

of

dividend

the

yield

On

are

any

whether

apparent

I

that

have

dividend

the

calculated

it

was

basis

the

of

stocks

common

when

their

Before

possible

pointing out
uses

of

process

during 1959.

of

some

of the

alternative

this

dividend

calculating

yields, several of the shortcomings
of

the

First,
pected

process
no
on

must

be

unanimity
the

rate

admitted.

can

of




be

growth

ex¬

of

4%

per

the dividend yield and others ad¬
vocate

earnings yield as the basis
of determining the cost of common
stock financing.
Comparisons are
made between the yields on the
common stock of the various pub¬
lic

utilities

(electric, gas, water,
telephone, etcr) and,-, industrials.
The typical method of calculation
substantially understates the cost
of

common

portant

At least

stock.

as

the level costs is the fact that the
differential

the

between

dividend

(or earnings) yield between pub¬
utilities

2 For

methods
in

a

On

(Iowa

the

detailed

of

basis

of

illustration

calculation

Financial

1960

industrials is

and

see

my

un¬

some

of

the

Lectures

time
we

to twice as fast. For
example, assume that the common
stock of a typical
utility selling
for $100 per
share is paying a
up

dividend

of

$4.00

earnings $6.00

per share and
share. Also as¬

per

that the market price, divi¬

sume

dends, and earnings for
industrial

the

are

typical

a

Is

same.

the

and

2nd Edition,
Supply Co., Iowa

City, Iowa).
3 A
of

companies?

No, if the divi¬
dends and earnings of the utility
are
expected to grow at 4% per
year and those of the industrial
at

considerably higher rate. The

a

problem
cussed

here

posed

on

basis

a

suggested

for

can

similar

portfolio

discussion and

illustration

material
will be pub¬
lished in the Public Utilities Fortnightly.
will appear in
prepared that

some

made

calculations

of

the

come

streams

the

riods

of

obtain

prices

for

than

rate of return

nothing

ficiency
terms.

for

but

of

the

This

marginal ef¬
in Keynesian

Some writers advocate the

interest

(inter¬

converted in¬

or

stantaneously)
and others have
applied game theory in their solu¬
tions.
Generally
these
writers,
however, have less sophisticated
the

about

of

cost

finance.

They

understand fully the con¬
cepts of compound interest, the
time-adjusted value of money as
engineers usually express it, but
they do not apply these concepts
to
finance.
Consequently, their
constructs are limping; the blades
are mismated.
Some even identify
of

cost

finance

the

cost

Occasionally,
that

stated

even

not

with

bond issue.

new

stock has

nique
In

common

cost when dividends

no

paid.

is

used

to

equally

Investment

Iowa

toward

started

a set of tables that
the
determination

preparing
facilitate

will
of

both dividend yields and

yields

on
advocated

Manual

earnings
the basis that has been
remarks.4

these

in

calculations

the

equates

of

the

income

James

Ph. D.

a

650

candi¬

computer.

to

is

no

for

substitute

decide

or earnings yield(s).
yields on various stocks may
also be compared in this way. Al¬
ternatively
given
the
analyst's
projection of the rate and period
of growth of the income stream he

The

determine the price

can

provide

cut-off

some

in

stock

interpreted1 as

prices

stock

advocated

will

prove

in

dividends.

downward

secular
The

the
One

of

rate

reason

revision

re¬

growth
for

would

'58

such

be

of
a

a

inflation

has

diminished.

principle

of

discounting

rising dividend streams may also
be
used
in
portfolio selection.
First,
I
assume
that long run
portfolio management is primarily
concerned with securing the high¬

Annual

Colorado

Report

gain

some

The

investment

be

may

useful

"%jk

will

and

of acceptance.

measure

tables

described

particularly

helpful to
of long-lived funds in¬

managers

partly

wholly in

or

com¬

stock.

and

the

depends

or

of

the

the
a

other

some

described

grant

from

interested

a

or¬

ganization.
Anyone who is interested in
having this project completed is urged
to

write

of

Business

to

Professor

Soldofsky, College
Administration, State Uni¬
versity of Iowa, Iowa Citv. Iowa.

Now Income Growth
Lesser

investment

is

continuing

business

at

9

his

Maiden

Lane, New York City, under the
firm

Plans

of

name

Income

Co.

NET INCOME

21%

'57

'59

available on

completion

tables

securing

upon

foundation

time

present

publication

'58

Request

Central Power Company

3470 SO. BROADWAY

re¬

in these remarks

be

to

&

'57

of

It is hoped that the method of
computing the return on common

be

may

downward

a

UP

22%

'59

that will

rate

turn^

mM
"58

rea¬

a

By reference to the
tables he will be able to read off

Mi

*57

He will

upon

the dividend

informed

judgment and technically com¬
petent < analysis
in
buying
(or
selling)
stocks. One method of
viewing a long run rise in stock

on

uncertainty.

INCOME

GROSS

first

of the income

rate

our

IBM

decide

(s) he is studying.

Samuel
Murphy,

to

tables).
He may also
handicap
the rate and period of growth for

stream

Department of Economics, is
preparing
the
mathematical
formulas
upon which the tables will be based and
rewriting these formulas for calculation

UP

to

Tables

University of Iowa

been

SALES

36°/t

both

The tech¬

sonable growth period (within the
limits of what is available in the

5 At

has

have

iS'.v.'v?

UP

more

"income

include

GROWING
KWH

not

applicable

of growth

have

vested

;

At the State

an

is

to

using these tables the anal¬

mon

by

of

be

market

or

phrase

dividends and earnings.

computing

capital

of continuous

in

The

streams"

investment.

on

compounded

4 Mr.

will

dis¬

also

that

discount

reasonable

that

stream

work

intervals

$5.

the

The

(3)

series of values

a

are

are

and

to

Sophisticated methods

is

time;

percent
within
a
range.
The objective
a

both.

recommended

a

including

of

rates for each quarter or eighth of

eting.

it

computer will in¬

following

rate

will

of

such
very

changes
growth over the
explicitly projected period; (2)
growth in income for varying pe¬

in

rate

the

of

them

components:'
(1) various rates of growth of in¬

the

ideas

650

IBM

an

yst

est

find

consuming. The tables that
plan to prepare with the aid

increasing interest and concern
with the problem of capital budg¬

use

number

a

and

clude

Since about 1950 there has been

is

the

be

analysis

above.

date

detailed

this point
I have

that

both

Management,
Book

have

growing

im¬

the understatement of

as

I

a

divi¬

yields are less than bond
yields. This should not be inter¬
preted as implying that any stock'
is a good buy at any price. There

widespread belief that the rate of

4.7

about

price for each
analyst is in¬
forbidding prospect.

which
is

dend

about 4.1

to

in

advocate

combatants

centage points in favor of stocks.
It does make sense to buy some

vision

two

of the

Some

dividend

the

percentage points
or
more above the yield
on high
grade bonds which ranged from

generally

case

controversy is the
stock financing.

as

decline

follows

as

the

common

for

It

also

of

area

of

cost

not

or

uses

prices is to
envision investors
projecting
more
rapidly
rising
dividend
streams.
Similarly,
a

yield

at

year, while the earnings per share
of industrial companies have been

market

in

Every

be expected
by at least three percentage points.

that may confidently

and

1944

I have computed it the
spread between the bond yields
and stock yields is at least 2 per¬

yield

growing

have

streams

worthwhile

there

dends grow at 6.25%

been

companies

gas

and

right.

own

terested

and

discounting
back to

by

dividend

■

teresting

630. In another trial I let the divi¬

for the first

yields

electric

the

and

determining

approximately 6.4% at
beginning of 1959 when the
were

mary

derstated.3

vestors

in

Waterworks

dend

the very wide

case

1923, the determination of the cost
of money capital or finance has
been
among
the
most
crucial
problems in rate cases. The pri¬

lic

the

was

Bluefield

stocks have such low current divi¬

yields is ample evidence of

stock

the

capitalizing past
One of the areas of intense and
thereby implicitly
projecting the dividends at their important contention is that of
the
general
level of rates for
present level.
• •
public utilities.
Since the Hope

per

this

projections

calculations I have made it appear
that
the
earnings per share of

cost of common stock the same for

Any two securities can be com¬
pared in terms of dividend yield
if
their
dividend
streams
are
projected and equated with their

accepted, the dividend*;
calculated on the basis of specified
than

to cbm-

rthe

on

promises to

basis

in

of

';k

may
be
whatever ground

ditional

dividends

the

future

r'i

method

or

are

dividends

be

further

fj

in

out,

greater

projected. Changes in ac¬
counting practices and in the in¬

to

:

two into the average year
But whatever

projection.

rising dividend stream will be

a

earn¬

value

for

reason

Practical

is

tion

k

yields.

of

the

them; in

pare

to

may prefer to "blend"
projections for the coming

variations

earnings are neces¬
sary only for 50 to 100 years for
the discounting process or valua¬
tion. Projections
of such length
cannot be avoided; the only ques¬

i.i

the general practice
forecasting. Some in¬

run

worked

dividends and

i

is

pro¬

would be best to be able

their

rules

The plow back of

surance.

■

activity have been

stocks with

'

long
share

t-,

in terms of

years

between

rising dividends and earnings? It

dividuals

of

indefinitely into the future. Divi¬
dends and earnings may be con¬
fidently expected to rise in- the
'h-k

individuals

some

as

long

year or

■

use¬

past

by

business

an¬

alysts are concerned about such
interesting but unrewarding pas¬
times.
• "/i'Vv.

open

Fourth, average

For one thing, the data for
reconstruction are usually

come.

the

number of years the pattern
growth should be projected is

ferred

the basis

on

of

question. Third, changing
rates of growth may even be pre¬
an

to

"consistent concept of net in¬

a

selection

subject of controversy. Second,

the

reconstruct the net income of in¬
dividual corporations

The

consistent with

of

27

Tuple'
ENGLEWOOD, COLORADO

"59

Growth

*

28

(1852)

The Commercial and Financial Chronicle
.....

'

»•

"•

*

.

.

Thursday, April 28, 1960

.

""

-

4

.

i

-

1

ill

"pv

T^T'P'Tl

I
vuxi via v

r

x

"If

TT*

•

nificant

1

j

yon PTTIS 1Y1
V
lx vxix
m I
xxx.
v.

x vk/ivuiu

amount

of

assets"

is

de-

securities

fined to incllideassets which have

•'

net book value in

a

of

the

of 15%

excess

registrant's total assets

which

were

excess

of

sold

for

immediately

are

the

at

time

to define the statutory restrictions
to. make it clear; that there

condistribu-

of

and

tion.
Further, it requires that was no-particular-holding period
registration be effected when such- which ,would be accepted as es-

or

price

a

vertible

in

holder converts and then wishes. tablishing investment intent and
distribute the underlying se- that only a truly
long range.; incurity,
unless
the - stock was vestment would' meet the retqacquired under such circum- uisites
of
the
exemption.
You
a

.

_

Continued from page 1

tion that the advisor will continue

short, where the question of legality is raised, the Commission
will require a clear showing that
the? stockholder proposal will lead

its .services to

tion

,.

particular

a

position

fund

«as

aJ what might be termed monop-

Qjy prices. Despite the fact that

Another

problem

the U. S. Steel,

in

way

should

look at

relates to the

case

which

stockholder pro-

a

posal from the standpoint of
struction

So"s

For instance

would be insulated from
and

which

would

the- -world,
courts?
After all,

given ballot

pends

challenge

most

whether

ment

de-

the personal eligibility of the stockholder to vote, unlike

upon

political

voting

determination

has

where

this

already

been

made,

and some review of this
fact must be permitted which will
at the
same
time
identify and

link together the stockholder and
his
ballot.
Or
is
the
proposal
better
for

to

be

construed

ballot

a

secret

which

calling

as

would

be

as

possible? Without going
detail, it might possibly be
practical to adopt
a
scheme
whereby the votes would remain
confidential

far

so

concerned,

would

Whether
a

strict

a

or

a

lenient reading is given to

more

a

proposal

have
a
direct
bearing on its legality and thus
its propriety for shareholder action.

I

may

doubt

surprised

.

that

when

I

will be
that it is

you

say

Commission policy to give a sym-

pathetic

reading to ' stockholder
proposals.
After all, to hold the
shareholder to the standards of
an

expert

draftsman

consistent with

icy

to

ment
XT

_

.

is

hardly

the statutory pol-

to

and

encourage

corporate

imple-

.

,

_

A

recent

area

lates
or

the

to

action

election

develophas been

of

directors

an

new

investment
advisor.
I
suppose
that it is clear that the new rules
reflect a belief that shareholders
in

mutual

a

fund

should

deprived of information

mind

insulate™ fro'm

the fund

nership

separate

a

entity which carries
ment
I

not

a

tain

mission
scheme
ment

this

be

of malaise

part-

publish

the

in

to

be

near

fu-

at

company world.
uneasiness
stems

presented

by

this

proved

these

.He

admitted*; that

argued that

ap-

proxy
rules,
there are a number of other mat-

posed form but

which

on

no

final

and

the

jabor

industry

and

J*1®. subtlety of
falling through

stone

a

cornice

skylight.

a

I trust

that the staff will be able to dig
lts way out o* the debris in the
near future and come to the Comwith

its
lhe

f iin a 1 recomchief target of

to be the proposal

seems

any agreements
macle witn respect to tne acquisitl0n or disposition ot assets. I am
that

must

vou

be

aware

if

the

deal

reporting forms

be kept as simple as
possible,
^ avoids the necessity for

land

tight

enough
trial.

to

I

stand

can

S
J
Si^®Pa"ment
as a oev ouymplementation or tne antitrust
laws.

had

we

ample

counts

I

the

gives rise to

as"ionab

stock

e means of whipping up

and

prices,

ta'ge

such. situations,

option

maLgemePnt6 Thl

of
Proposal suggests that

W?L,,

vinced

that

create

such

suggestion

«>ey

a

possi-

full public dis-

as soon as
become reasonably choate..

The draftsmanship of our forms
regulations has been made

and

increasingly difficult by problems
in the enforcement field.

the

men.

The

trouble

when

comes

of

stock

is

refers to the dismissal

17* 7

Alexander

under

by the trial

*C°Unts which
againit

L.

Guterma

o




afford

a

for

requests

no-

will

company

-issue

private

placement

wh? will subsequently

announce

that they really bought the securities originally with an intent

to

hold

them

forever

and

ever

and with not the slightest

view

con-

received
in
a
private
placement rather than the distribution of the underlying security subsequent to conversion. It

pletely attributable to

is based

seen and usually

largely

their

to

distribution,

and

that

their present desire to sell is

corn-

unfore-

an

lugubrious
change in circumstances or else
they have from any point of
view held the stock a sufficiently

on

long Lime adequately to evidence
their original investment intent,
Accordingly, these officers or pro-

the issuer's offer to the underlying

moters call on us to admit that
when they dispose of their stock,
The issuer is, at that we will not look on them as unmoment, in the position of making derwriters but merely as private
securities into

offer to the gen-

an

eral public.
offer

an

of

securities

which

holders who

falls

are

casually

selling

riknnsitinn

of

„

u

no

means

exemption, it

pro',.5

„

According to some of the comments filed with us, this proposed
Rule

con-

the power to

155

is

part

assets

^

•

•

ened

with

loss

to

of

say,

his

position.

when

he

finds

out the sharpness of the serpent's
tooth, he hastens to exercise his
options prior to the request for
his
resignation
or * within
the

monstrous

a

bought control, and he is threat-

.•

_

the Second Circuit as expressed herent in the private placement immensely solvent, is
presumably
jn Greene
Dietz and as later 0f convertible securities. In no in the very best of health- and
applied in
v. Timber- way does it indicate any hostility blithely executes a letterPerlman
of to¬
lake

At

the

same

of

some

time,-it rein-

the

procedural

to the underlying
corporate :authorizations which
were deleted in 1956.
as

The fact is that

we

had

reserva-

the desirability of
shared

were

Dractitioners

aresence

n

P"eaf"cneti"

nuestioned

ouip

authoritv

nermitted '

was

by

bv

it

not

option

famiiiar
of

the

plans

I

mav

ex

to

would

sav

these

that

the

other

are

vestment

intent,

*

.

"

ap-

..

thereafter, howhiiPlssion^is notified

tuaf'

£ i!r J

.

.

m

p,

wants to sell

rJ

highl^ ^ «
'lawyer" co'ntem KIt afpears

of further analysis of this
prtoGng

discusston of

some

his

hfa"

rending

toat

the

gentleman; has invested

old

large

a

the matter in its current issue pa,
Pf. h'S1fortune in valuable
which should provide a fairly de-an^ gas properties and he is
tailed argument pro and con.
Pow Placed in the position where
*
•'
"
;
"
he must forthwith drill a series
'

^

Changes in Private Offering
Exemption
*ai

,

,u

oonrt

?

.,

same. hne, it.
t

fnd

off-set wells or else see his
oil drained; away from his land
.

..

miiclv the

who

devel-

to

There

proaches to this problem which I
might but will not detail by way

he

oniv

one

the

as

has

rp«;nppt-

not

with
law

the

an

°fhf"h

such

oucrht

<dnee

of

seriouslv to mislead

ODment

number

a

Certainlv
rules

our

bee?.

serve

erally.

platVs

which
.

on the part of the Commission or
its staff to private placements gen-

our

^

as

,

water

is

squeezed

from

a

Choking with emotion at

sponge.

recent his plight,/his; 'lawyers

J P Commission pronounce- piain, that Proteus
I^The steaded^ i^ft !fn/°^ J debt and that the

^vill/ex-

is

already in
only way for

SSsSs SfStKHSf
our

careful study be given to the resuiting legal situation when a restricted stock option plan is be-

considered/

Sn

the other hand

tendency for the regulated iridus-

tr"

to

of the

encroach

the borders

upon

regulatoryjurisdiction^ el-

teblfshinl rfootroW fkr'and
then nushine forth
Frivate Pla"melf.ot Convertible portunity from thaf point of de-

events is the Act.

It requires that

registration

other

tion

thereof,

assuming

that

the

at

the first

nn-

parture.
The
private
offering
exemption is no exception. I will
admit that the Commission has
recently made an effort to high-

light the limitations of

the Section
4(1) exemption, but those limitations have been tacitly understood
for many years and it is only re-

cently

writers
them.

that

issuers

have

^^d^'Howevev the t-

hTsto^ytelche"

•

f

sig-

of

small manufacturing concern
and the grateful recipient of restricted stock options which have
turned out to be of considerable
value.
Unfortunately,
his
ambitious nephew has clandestinely
a

Needless

effort to destroy the private
placement as an institution. This

r_

ff fh" a.m0""t be effected when recipients of
ordfiSrv ,1,7! hZ"
/ c°nvertlb!e securities to a private
{his connection,
connertm„
this
?Lbfme£S;,
-In Placement make a public distributhe term
of

confronted. Mr. Proteus, as we
will call him, is the President of

responsible for. the
or, pot he, meets

offering whether

.

the

,

hi

exnetoaexpecta

A

purported

a

the hypothesis
that a convertible security carries with it a continuing offer of
the
underlying security.
When
the recipient of convertibles in a
private placement sells his securities to the public, he translates

a

m

prices

with

nature.

staff

.

^

in

at

not

action letters in situations.of this

^

the

"re- writer."

Although

it lacks
as

; v,

recently

cow

non-voting stock issued
obviously
based on the
y
D
e

does

year,

barraged

vertibles

him

{rthe^opriefy TrSinT

"Guterma gap" is an example of
wbat 1 mean- This terminology

some

lower cost. Control of investment
advisors has been transferred and

^

of

deals, with the distribution of

in

-

£61^

,

__

instant

one

suS. Pro.b_

ft!,,

Rule

plan.
by

Commission

^^ •^7

is

though

for" a

as

characteriza-/ shares to officers or promoters in

'

-

This

and

rarely'b»urtt°tato Fn/
°n hif fajjure.tto !jle
littoafinn his f/
reP°rts. specifically,
Securities
recently been instituted which
?
f
I"s'ruct'°n
Among other matters awaiting
dicltes thatevCTthis sacred
L
2 °f FU°™.,8:K- .,Tuhe Commission action is the proposed
is about to be questioned
It is
"da/ «IS tl be,fl'ed within Rule 155. This proposal concerns
rarely asked whether another ad- mnnth H,f/in®
' ° eac
,tself ^lth private placements of
visor
might be able to render
!vhlc,h any- of aer" convertible securities and the efequally competent service at of thew mlfiS
occur. One feet of Section 3(a)9 of the 1933
fees

release,

their desire to dispose of . the
legal difficul- stock* -They will earnestly argue

some

ties.

can

•

acqilisition

st0Ck

requirements

directorboard'of Ending the "Guterma Gap"
^iareholders S.g co^T

ment

the

Alice-In-Wonder-" statutory basis for an exemption."
am
charmed
bv
The "Commission is constantly

hand, I am
ready to admit that the first part

you

on

oualitv

corporate

i^ue

ac-

technical definition of {'under-,
That is. he is engaged
ceived for comment a revised
pro- in a steP accessary to the distribuposed ruig i6b-3 relating to ex- tion of securities, and would come
emptions from the inside trading within
the rationale
of
such
restrictions.
In
short, this pro- venerable holdings as that in SEC
posai contemplates removing the v• Chinese Consolidated Benevoshelter of a stated exemption from lent Association.

JPaJ?r Purchases have become the

the

Q

that in

us

jn particular of the
proposed rule

we
are
not
going to spill
industry blood in order to wash
away
the
sins
of
Alexander
Guterma, and it turned out that

states

the

^

six months'capital gains period of
the tax statutes/ holding in an
'investment account'; rather than a

nrominent

one

unable to accept the
tion.
On: the other

that

" stems in large part trom the
AdLr ulcU iamors OI mergers ana

from

tensfftoHerhnfhrv,PaItheS' i°, be,.ln"
in™
nbAthl,l 1 ?a!i,01!
f"d
th.e fact that
ual fund bfre"ahvtov'small \Zs~
is relatively small. Thus,

will recall -that the Commission
there stated that "Holding for
the_

and admitthat it
brings up some fascinating pictures, but I am afraid that I am

of

up

assure

an

{heir Illusion

apolo-

of

-

i

of

characterized

imbued with

instruction

good

a

Very

By and
large, these forms and regulations
are designed for the use of honest

Basically,

thereof

reading the proposal and the

was not reentire, series

the

*

proposed revision, and the com- gap."
ments descended on us with, as
Revising
s° vividly expressed recently, all
Some
have

cer-

the Com-

members

holder

underwriter.

an

action has been taken. For in- without these. However, so far within the ambit of Section 5 of a part of their portfolio,
stance, some may be curious about as our consideration for house the Securities Act and which is
One example will probably be
what has happened to our pro- counsel will allow, we will try to not entitled to any
specific ex- enough to illustrate the type of
P°sed revision of Form 8-K. We tighten up our forms to avoid emption. On this
theory, the pri- case with which we are constantly
naively invited comments on this such problems as the "Guterma vate placee is

frms may be

fairly

the-

iaw fi^ complained to

that an8-K

the

8-K;

an

unless

quired

criminal

new

The

that

-

not be

ls filed when a series of related companying r e 1 e a s e they were 'trading account,^ holding for a
'*rans«^01». regarded imthe ag- seized by the feeling that ,they deferred sale, holding for a marf?"eSate. reaches the "15% mark. were having a bad dream from ket rise, holding for a sale if
Jhe
However, it .was Mr. Guterma's which
they would shortly awaken, market does not rise; or holding

are

.

ensure of negotiations

a

of

purpose
sure

efficacy unless they

.

Kevismg rorm o-lv

contract,

concerning the existing
of things in the invest-

anomaly

devoutly

manage-

that it is also
that the rules reflect

state

-

tore tor comment, proposed forms gizing for what might be called
f°r
°A mutual funds administrative gobbledy-gook. On
un<?er\
which will the 0ther hand, Form 8-K and
embody much the same approach any other of our forms will lose
as maA mken in the proxy rules. a g0od deal of

corporate

on

functions under

as a

suppose

clear

to

concern-

management™ a" least^in par?" to
or

invest-

or

for notification of

advisory contract,
rules require fairly detalled information
concerning the
on

obvious

"

,

consummation

a

sure

the

of

wished. Incidentally, I might mention that the Commission has in

criticism

; -

significant

the proxy

in

,"

.

be, it seems clear that in- not sufficiently precise on this
creased stockholder participation point for criminal prosecution.
*n the affairs of mutual funds is
jt Spares both the Commission

mendations.

,

Companies

stances

may

mission

democracy.

New Rules for Investment

ment

directors

ters which have appeared in pro-

.

not

or

series

•

While the Commission has

be

available for the scrutiny of a re-

viewing court.

given

or

advisor to the-.funds are .was confined within the space of
advisors to'the funds are one month.; Apparently the Judge
^, a?5
,1 ,eir '
faccepted this argument or at least
shareholders. Whatever the truth concluded that Instruction 3 was

management

as

but

be

u

as

into

was

$tffi"

aSalms

particular advisors, - and

-*Ye?u

from

cases

to

transaction

,

including > the
the validity of

in

to

dis-

a

some observers as to whether called for information on a "series
mutual funds haye-become caP- .of related transactions"; but

which

be>secret

all

a

The

raised a question in .the minds of,

ljallot,

ballot

a

con-

when IVIrs

"ec'r^

pTOposes
a
she
mean

does

Informa-

such

r?e sngniesi vismie quaims ,
These phenomena of the in- wide-eyed contention that the investment company world have struction simply did not say this,

Commission

the

to

required

item is to make

^are-

?SS^ed

by

suggested

is

each

indicated."-

or

•

amount.

respect

0f reiated transactions of the size would

these prices suggest that the fund
illegal action before ""gbt st"ke abetter)bargain elseacquiescing in its omission.., ...wnere, me airectors and

to useless

that

with

sought

and

to

by thia tale of

company

Thus, in our release in the
Crowell-Collier matter, we tried

is

not

prepared

to

as-

^me the responsibilities of regis-

tration in order to help him- out,
and it
own

have financing of its
which
might be
by such a course of

may

in

view

stultified
action.-

Consequently, the comhas
rather
peremptorily
directed its transfer agent not to
complete the transfer of this stock
Pany.

under-' until
extend

woe, being in the

hands of his stony-faced nephew
who regards his old "ncle with
deep-seated hostility. In fact, the

it

the

feels

statute

The

SEC

that
is

has

no

indicated

violation

involved.

Commission,

of

that
the

•

of

course,

Number 5946

Volume 191

easily^ conclude that poor
could'•- not - reasonably

could

protetis

the

foreseen

evil

.

.

The Commercial and Financial Chronicle

.

handle

to

such

in:

cases

a

way

which?will avoid hardship.

*

As far as regular financing is
which have beset him, and might concerned, I can only advise to
possibly be justified in issuing* a start planning well in advance,
ribraction
schedules
as
flexible
as
letter,
dampened;
if keep
^ou will; by a furtive tear; How¬ possible, and cross your fingers.
ever,
to be completely realistic Of all the problems in the field
about it, a change of " circum¬ of securities regulation, this is one
stances is fairly easy to adduce, problem which the SEC cannot
have

almost

in

every

and, not
synthetic

case,

this

ununderstandably,
tragedy tends- to

ways *,

solve itself. We will
on

not

only

tude from the Committee

leave us un¬
moved.-More and more, the Com¬

propriations

mission

stantial

and, its, staff have felt
^impelled' to 'look at the context
which

in

for

sued
that

the

securities

the

address

they • were : not
acquired
merely because they were avail¬ Mass.,
able at bargain basement prices
and that they-did not constitute
simply a part of a portfolio of
speculative securities, subject to
usual

In

which

I

curities

.vicissitudes

of

have

Boston

by

on

Bar

,

such

hypothetical
outlined, the

the

of

Mr. Gadsby before
Corporate Counsel of
Association,
Boston,
April 13, 1960.
/ * -

Committee

the

paper.

Ap¬

but

measure

is¬

were

assurance

•

the

atti¬

on

also on a sub¬
industry un¬
derstanding and cooperation.
*An

objective

an

♦

have to rely

sympathetic

a

case
se¬

W.

Hutton: &

E.

of

Co.

is

manager

underwriting
syndicate
ture, were acquired in order to which offered on April 27, $5,000,take advantage of valuable op¬ 000 of 6% subordinated convert¬
speculative

were

in

na¬

an

acquired in an¬ ible debentures, due April 1, 1970
ticipation of a separation from and 200,000 shares of common
the
issuer.
It may
seem
fairly stock of Avis, Inc. The debentures
tions

and

were

blooded to deny a no-action
under
the
circumstances,

cold

are

offered

at

from

interest

100%

and accrued

April

1960, to
I think that the Commission yield 6%, while the common stock

letter
but

would
than

doing something less is priced at $11 per share.
Net proceeds from the financing
plain duty were it to
this course of action.
will be added to the company's

condone
In

1,

be
its

discussion

my

here

of

cur¬

rent

regulatory problems, I have
ailed to touch seriously on the

general funds and will be avail¬
able for various corporate pur¬

It is the intention of the
to apply a portion of the
the Commission's work is divided proceeds toward the repayment of
certain debt and to reserve part
between two worlds. On the one
of
the proceeds to provide for
hand, we are working in the
regulatory field with an honest payment of principal installments
due on long-term debt within the
and cooperative industry. On the
next 12 months.
other hand, we are policing the
The 1970 debentures are con¬
capital markets against fraud and
re¬
manipulation. I have deliberately vertible, ' unless previously
restricted my remarks to matters deemed, into commoh stock at $12
of debentures
which are relevant to the first principal amount
field

enforcement.

of

In

Institute

a

sense,

poses.

company

PICTURED above

are

members of the Third Year

(Graduates) of the Institute of Investment
Banking's
Executive
Development Program, a
First

Row—Left

Robert

to

Ramsay,

Inc.,

Company,

Brace

Bennitt, Jr., Piper,
Hopwood, Minneapolis

Company,
Fox,

Jaffray

Inc.,

Los

Kraus,

&

than

the

responsibility,
position
that
those
inlo

who
that

I

will

never

for

where

land

not

trust

a

but

a

but is a
unregis¬

a

tered securities and where

is

over

cross

pledge
distributing

not

of

area

the natural sup¬
am
addressing

on

shadow

pledge is
device

second

trust

a

passport to

a

final

serves

which

matter

few

a

mission's

words

is

the

de¬

Com¬

situation

present

with

respect to the processing of reg¬
istration
it

is

statements.

news

that

longer rely

on

an

I

doubt

issuer

that

can

no

receiving its first

letter of comment within
and

each share

&

Minneapolis

Stern, Frank, Meyer &

Angeles

stock

common

through April 1, 1962, thereafter
at $13.50 through April 1, 1965,
thereafter at $15. The debentures
are to be redeemable at optional

redemption
prices,
beginning
April 1, 1960, ranging from 105%
to
par,
and for-the contingent
sinking fund, starting Jan. 1, 1961
and
continuing through Jan. 1,

14 days

1971, at a redemption price of par,
plus accrued interest in each case.

Inc., with its executive
Boston, Mass., is primar¬
ily engaged in the business of
renting and leasing automobiles
Avis,

offices in

statement

its

and

clearance

business

conducted

is

were

&

Named Directors
SOUTH

Calif.-—Anadite,

GATE,!

Inc., national chemical milling and
metal finishing firm doing busi¬

sales of the Arrowhead & Puritas

thoroughly expect that the fig¬
ures
which
I
have
given for Waters, Inc., of Los Angeles and
December
1959
will shortly be Mr. Congdon is a financial analyst
viewed with nostalgia as reflect¬ in the underwriting department of

compared with the previous high
the

month

March 1959. As of
the

171

of
a

filings in
few days ago,

pending matters
in
the
Division
of
Corporation
Finance stood at 410. Only a few
months ago, the normal backlog
was

backlog

about

asked

the

that

status

of

100

cases.

cases

have

concerning

inquiries
of

We

be

held to

a

minimum during this month and
that

we

of cases

be

notified

immediately

urgency. We




C.

Right

F.

Jr., Courts

Revson,

Co.,

&

Deposit & Trust Company, Baltimore
Jones, Baker, Watts & Company,

Frank S.

Titus,
of

Fourth
James

Company, San Francisco
B. Summers, Fahey, Clark &
Co., Cleveland
James E. Jones, Wm. J. Mericka & Co.,
Inc., Cleveland '
Roman Hales, John C. Legg & Co.,

v

Morgan, Dominick & Dominick,

New

First National
York, New York

The

City

Row—Left

T.

to

Frank B. Frazer,

Right

Co.,

Gray, Mead, Miller & Co.,

New

Hurd, Baumgartner, Downing 8s
Baltimore

Co.,

Clyde M. Reedy, Francis I. du Pont &
Rolf

Shropshire Frazer &

York

Eliot P.

Baltimore

Co.,

Baltimore
Bank

&

P.

Inc.,

Baltimore

Wright, Rouse, Brewer, Becker
Bryant, Washington
Henry B. Fout, Jr., Mercantile-Safe
&

W.

r

Auchincloss,

Thomas

III, W. H. Newbold's
Harrisburg

Atlanta
Melvin O.

Alan

III,

Jack

York

New

Co.,

Lewry,

Labouisse, Friedrichs & Co., New Orleans
H. Canvin, First California

>

Samuel W. Fleming,

John A.

Company, Topeka
Alfred

to Right

Redpath, Philadelphia
Moore, Jr., C. F. Cassell &
Charlottesville
F. Hunter Collins, Jr., Howard, Weil,
William

Jr., J. Barth & Co.,

Albin, The Ohio Company,

Son & Co.,

M.

Parker

New York

Francisco

S.

Row—Left

Thomas

Columbus

Houston

Inc.,

.

Madden, The Chase Manhattan

Bank,

Christy, Braun, Bosworth &
Chicago

Robbins, Coffin & Burr,
Incorporated, Boston
Earl D. Erickson, Auchincloss, Parker &
Redpath, Washington
Norman T. Wilde, Jr., Janney, Dulles &
Battles, Inc., Philadelphia
'

Singer, Deane &
Pittsburgh
France, Shropshire Frazer &

C. McCotter, Lee Higginson
Corporation, Chicago

Joseph L. Pierce, Beecroft, Cole &

N.Y. Bank Auditors
Elect Officers

Robert M.

Blanchard, Burns Bros. &
Denton, Inc., New York

,

Minneapolis

W.

MacKeen, Greenshields & Co.,
Inc., Montreal

John

Now Morrison & Frumin

nes?

W.

Stodder,

Incorporated,

A.

G.

Becker

&

Co.,

Chicago

DETROIT, Mich. - Morrison &
Frumin, Inc. has been formed with
offices in the Penobscot Building
to

continue

the

investment

busi-

°f Morrison Investment Se-

X presPdeniInd'xre^r
,

e T™

.

dent and Secretary.

'

elected President of
City Conference of

was

the National Association for Bank

Audit, Control and Operation for
a term beginning July
1, I960;
officers elected

Other
Vice

-

President

National Bank

were:

Manhattan

ney

&

Tyson,

members

of

the

Moore

are

now

Townsend, Dab¬
30 State Street,
New

York

and

M.

Mercer,

Charles L.

the

Controller,
Bank;

Chesley

Auditor,

Assistant

New

York; George F. Nelson,

Auditor,

The

Bank

of

Franklin

National

Long Island;

Ernest W.

Redeke,

Comptroller,

The

Zilka, Smither Adds

National

City Bank of New York;

(Special to The Financial Chronicle)

Felix M.

Boston Stock Exchanges.

PORTLAND, Oreg:. — James I.
Hessler has been' added to the
staff of Zilka, Smither & Co., Inc.,
813 Southwest Alder Street, mem¬

will try Exchange.

Pacific

Coast

Stock

Merchanis

and

Auditor, The

Bank of New York.

The New York

includes

204

City Conference

members

Frederick H. Mueller

First

Schoenberger, Assistant

Vice-President

bai'iks.

our

customers

'

offspring of the New
capability
to compete with us in markets
where we had previously had an
advantage.'—Frederick H. Muel¬
ler, Secretary of Commerce.
World,

Morgan Guaranty Trust Company
of

dollars

the economic

Chase

BOSTON, Mass.—David A. Lavin

of

"Now the Old World has become

Members elected to the Execu¬

(Special to The Financial Chronicle)

with

amount

possessed.

York.

Assistant

connected

our

of Westchester.

Leist,

W.

F.

postwar years it was open. sea-,
globetrotting salesmen and our agents
abroad.. Europe was convalescing and the United
States was the only large-scale producer. Our order
books were limited only by the
for

Secretary-Treasurer—Robert B.
Decker, Comptroller, The Marine
Midland Trust Company of New

tive Committee

Robert

were:

Cosmo

Hardy, Vice-President & Cashier,

With Townsend, Dabney

and

—

"In the immediate

son

from

76

with increased

Despite all this the Secretary is
optimistic about the future of our
exports. We hope he is well war¬
ranted in this hopefulness, but we

afraid his

explanation of our export difficulties
important things unsaid..
""We have in one degree or another priced our¬
selves out of markets abroad—due largely if not
are

leaves

some

solely to high labor costs. Full realization of our
potentials abroad will await correction of this state
of affairs.

aM

lrefsurer. and

Abraham I. Morrison, .Vice Presi-

the New York

Dean Witter & Co.

involving time problems bers of the

of peculiar

Co.,

J.

Miller, Jr., Dean Witter &
Francisco

L.

Michael

Donald

Harry C. Webb, Jr., Underwood, Neuhaus

-

ing the golden days of easy regis¬
tration.
This
last
month
has
placed us on an emergency basis.
In March of this year 260 regis¬
tration statements were filed, as

Bert

San

K. Block, Vice-President
Comptroller of the United
States Trust
Company of New

ing, that much of this financing ness with the electronic, missile
comes from
unseasoned business, and aircraft industries announces
and.!. that
we
simply • lack the the appointment of Robert S. Sutfunds and manpower to process tle and Theodore G. Congdon to
all
of
these
registration state¬ the Board of Directors. Mr. Suttle
ments with the desired dispatch. is vice president and director of
I

to

Last

?

^

Mobile

Co.,

John
Row—Left

York,

problem, of course, is that
been
subjected to an
unprecedented flood of financ¬
have

Howard

Claude Rosenberg,

York

New

Boston

Griffin Rafferty,

Scribner,

Company, St. Paul
John E. Friday, Jr., Morgan Stanley &
Co.,

San

Co.,

Richardson, Jr., Eaton & Howard,

Incorporated,
M.

Rodriguez, Government

Herbert G. Lancaster, Harold E. Wood

Second

Willard

Co.,

Right

and

then

Our

for

E.

Development Bank for Puerto Rico,
Santurce,. Puerto Rico
LeRoy A. Wilbur, Jr., Stein Bros. & Boyce,
Baltimore

Edward

of rental stations.

network

coming out in about 26 days.
we

Louis

St.
Mario

to

Menefee, Jr., The RobinsonHumphrey Company, Inc., Charleston
John W. Deering, Jr., Coffin & Burr,
Incorporated, Portland
David L.

Felchlin, F. S. Smithers & Co.,

New York

Row—Left

Charles E.

Hurt, Dean Witter & Co.,
Angeles
John H. Schmidt, First of Michigan
Corporation, Detroit
Robert E. Crawford, G. H. Walker & Co.,
Los

BoutiUier, Dean Witter & Co.,

York
A.

James

the

under

days, and in¬

itial letters of comment

New

■

and trucks without drivers under

"Avis" name by wholly owned
days.
These were averages subsidiaries and two
foreign af¬
during 1958. By December 1959, filiates
and, except for vehicle
the average elapsed time between
leasing, by domestic and foreign
the date of filing of a registra¬
licensees through
a
world-wide
tion

;

William

William H.

Welch, Goldman, Sachs & Co.,

Martin Le

B. Vick & Co.,

G.

Third

N.

Baltimore

Michael D. Vick, M.

Cleveland

Angeles
Walker, Equitable Securities
Corporation, Dallas

PeniL

Bethesda
John

Lawrence

Los

Thomas B.

of

Julia

•

John

Robert Fomon, E. F. Hutton & Co.,

University

Rudolph C. Sander, Butcher & Sherrerd,
Philadelphia
M. Montgomery, Ferris & Co.,
Washington
Robert M. Hanson, Jones, Kreeger & Co.,

& Co.,

Cleveland

Tyson,

Commerce,

generally uniform procedures. The

24

had increased to 41

and

Ussher, Jr., Ball, Burge &

Chicago
G. Butler, Prescott & Co.,

Edward Maloof, Goodbody iz Co.,
St. Petersburg

&

obtaining clearance within

on

of

■

anonymity.
One

for

Finance

Roy V. Montgomery, Jr., H. I. Josey &
Company, Oklahoma City
Milton E. Prevost, Townsend, Dabney &

I

McFarland, Kalman

Emil J. Rothenberg,

Association of America and the Wharton School

of

Cleveland

David M.

Grand Junction

Richard D.

ers

Harlow Greenwood, Fulton, Reid

Right

Boettcher &

,

rather

project jointly sponsored by the Investment Bank¬

Class

30

(1854)

The Commercial and Financial Chronicle

down" small blocks at their NASD

Short-Term Market Impact
Of Secondary Distributions
Continued from page 11

agreed to. In most
the

individual

the

obtain

ceiving

per

a

work.

divisions,

to

members

the

on

manager

that

these

be

made

After

together with the other syndicate

at

firms

tions

as

to the

advisability of sta¬
the market during the
distribution
should
he

bilizing
day

of

need

arise.

security

offerings

from

impossible to sell.

after

the

that

day,

on

it becomes

ideas

of

the

salesmen
the

the

posi¬

the

success

distribution.

purchasers

or

Pro¬

have,

price

Under current

able

make

to

free)

net

a

purchase.

On

this

type of
transaction, the seller of the large
block is charged "a gross spread
which will

from

range

standard

to

encounter

shares.

few

as

as

in

marketing the
a very definite

the

on

attitude

of

the

se¬

helps

bring a
trading volume
usual.

of

ing.

such

a

(These

and varied and

only
below).

mentioned

many

are

large

few will be

a

number

the

ranks

of

tional

the

participating

manager

customer.

ing,

several

consulted.

Prior to the

individuals

in

clearance

to

the

selling

group,

participate must

be

given by the Board of Governors
of the Exchange.
Under normal
circumstances, Exchange members
not allowed to participate in
transaction involving the pur¬

are

any

chase

sale

or

the

unless

of

listed

securities

is

transaction

com¬

pleted on the floor of the Ex¬
change. AfS can be readily seen,
a
secondary distribution does not
fit these specifications. Exchange

permission is, however,
readily obtainable and

usually
a

selling

be

Should there be NYSE

members

Final

be

check

made

before
In

price

on

with

the

must

original seller

who

this

current

of course, not avail¬
the frequency with which
are,

on

tion

so.

has

Usually great

been

taken

to

precau¬
see

that

word of the proposed offering has
not "leaked" to the public.
Em¬

ployees of participating firms are
told
only when necessary and
cautioned to keep it secret. Should
the news appear several days be¬
fore the offering, a definite price

depressing influence would prob¬
ably appear for some time. This
would

be

caused

by

the

feeling

that this

large block overhanging
the market would produce addi¬
tional supply and also result in
investor

some

purchase

postponement
of
the distribution.

until
is, of course,

Secrecy
impossible
should the block be large enough
or

from

SEC

the

right holder so that
registration would be re¬

quired.

In this

case,

sionally

Investment Bankers Association of Amer¬

ica,

p.

530.




that

an

an¬

lack

of

faith

in

company

pects. Despite such

ments,

the
that

feeling

remains

with

secondary distribu¬

a

least

at

securities

pros¬

announce¬

indication

an

that

market

stock

offered

in

over-the-

counter

prospects worsened and

wholesale. These
resale to

their

are

own

all, it would appear that
the majority of persons view such
distribution

market

influence, both

distribution

the day

on

in

and

later

pe¬

The

smaller

than

is

The

is

—2.26

during and immediately after sec¬
distribution, has always
a

matter

of

conjecture for

traders

day

and

of

investors.

The

obvious reaction
the

distribution

first

on

the

would

of bids
in the particular
security involved
after
the
announcement.

Thus,

knowledgeable prospective pur¬
chasers who had seen or been no¬
tified of the coming distribution
would probably postpone straight
commission purchases of the stock
in order to participate commission
free after the close. This is some¬

the

Still,

stabiliza¬

tend to expect price
depressing inflences to
continue
for
several

days after the secondary in many
cases.
This would, of course, be
somewhat less than

on

the

actual

announcement date and would
sult

tion

primarily
of

dealers

from
who

the

been

1,

58.

to

Buy

Stocks,

Louis

This

cancel

out

sample

as

such;

over

large

a

is scope.

survey, I
York
Stock

As

have
Ex¬

and

Nov.

between

13,

total

a

1959.

of

111

is, I believe, a repre¬
sentative sample. (The entire list
of

preliminary

Table

VIII

data

at

is

the

given

end

of

in
the

study). In this total, by classifica¬
tion, are 93 Industrials, 5 Rail¬
roads

and

roughly
range

to

as

from

actual

of

are

proportions

NYSE

list.

They

highly speculative
Studebaker-Packard

a

second

lack

These

as

as

stable

The

Utilities.

entire

issue

an

13

the

the

over

security

Detroit

as

important necessity
caused by other

error

market

influences than the dis¬
tribution.
The
first
question is
whether
tion
to

of

or

the

not

the

entire

influence

the

actual

market
survey.

direc¬

tended

Ideally,

it would be desirable to have the
market begin and end the

period

at

exactly the

same

level. Table I

indicates "its" actual

course.

My fundamental statistical
method

be

may

outlined

lows:

fol¬

as

(1)

A survey

made

was

of the

net changes of all stocks for five
market days before and after the
time of distribution (net changes

allowed

to

me

neglect such things

cash and stock dividends with¬
out error).

all

series

stocks.

added

were

same

for

D-J 30

(3)

The

total

(summed)

changes for each
then

was

of

divided

the

by

10

111

so

I obtained the
average net
for each day.

net

days
that

change

average net change for
day for the entire 111 securi¬

ties

then

was

divided

by

the

these

Industrials Railroads

D-J 15

Utilities

1

590

161

90.5

Nov. 13

642

152

86.5

•Net

Chge.

%

Chge./day +

•Over

a

changes

8.10%
.04%

period of 212

—5.91%
—

.03%

(the

of the

course

stock

over the
10 days)
plotted graphically.

then

was

They

New

—4.63%
—

.02%

trading days.

York,

Great

A.

Ford

and

National

Fourth Day

+0.27
+0.45

Day of Distribution

—0.74

Sixth

—1.60

Day

Seventh Day
Eighth Day
Ninth Day
Tenth Day

—

_

Distribution price=r

Table

II

indicates

the

over

and

a

Notice

tribution
below

the

price

the

the
with

discount from the market closing
After
that

with

to

similar

ways

will

does not

seem

impact of a
secondary distribution on it. Table
IV

and

Table

the

here on,

dis¬
.12%

stocks

in

and

similar

out of order.

announced

than the
average. I would guess
that highly volatile stocks
would
feel much more market

same

impact

more

large

block

security
in

.

issues

a

the

expect that
distribution
in
a
a

a

market

very

volume).

V

show

occurrence

volatile

issues

TABLE

the

effect

5 stable

on

respectively.

IV

Cumulative average percentage

Day

Second

+0.78%
+1.00

Day_^

Third Day

+0.75

active

Each

Day

of

—1.19
—1.68

Ninth Day

—1.45

Tenth

—1.90

Day
TABLE

V

,

Cumulative average percentage
day to day price changes for
the five most volatile stocks
under survey

First Day
Second Day

+0.70%
+0.12

Third Day__

—0.78

Fourth Day-—-:

—0.78

Day of Distribution

—2.10

Sixth

—1.72

Day—

Seventh

Day
Eighth Day

—4.58

Ninth Day..
Tenth Day

—5.19

The

■—2.46
—4.11

used

measure

was

that

com¬

puted

by the Value Line Invest¬

ment

Survey

specifically

as

an

index of stability. It is
figured by

taking a weighted average, ad¬
justed for trend, of the difference
between the high and low for a
stock

over

each

of

the' past

10

Thus, stocks with wide per¬
centage fluctuations will have a
years.

low index of
with

a

stability while those

stable

trend

will

have

a

high figure. The five very stable
issues I chose
Virginia

Electric

General

Public

Niagara

Mohawk

Detroit

were—
and

Power—

Utilities

Mar. 30

April

—,

Power__

The

7

April 9
April 30

Edison'

General

Mills

Sept. 16

five

most

volatile

issues

under survey were—
Consolidated
Cerro

"thin"

greater effect than

with

(high

In

would

with

would have

market

stable utilities and

industrials.

an

I

changes

early, would act quite differently

quality
way, I

price
the

—1.00

that

then

are

and

Day
Eighth Day

larger blocks
registered with the

and

the

security

a

market

Sixth

I would
expect that
which must be

SEC

of

short-term

Seventh

entire

act

between

—2.61

characteristics

circumstances

is

correlation

stability

it appears
definitely
some

—2.80

closing

expect

;

investigation,

there

+1-02

and, in fact, provide a
variety of different per¬

spectrum,

marketing of very
substantial (.74%)

a

price is usually given.

—0.86

the

the

sharply. Notice

—0.30

about

Over

the

large sale,

a

distributions

rose

large blocks,

s

way

formances.

actual

price average

v

The
one
hundred and eleven
distributions under survey do
not,
of course, all act in
exactly the

wide

used

general

under survey

price
on the day of distribution.
Usually
the offering is made at the
day's
closing price, but occasionally in
order to move
larger blocks, a
discount must be given.

same

the

Day of Distribution

average

is

average

in

as

Fourth Day

sold. From

that

same

methods

anticipation of such
after

First

approximately
begins, but gradually flattens

out.

June 24

Paper_—a— -Aug. 18

statistical

—2.12

period,

2

__Mar. 25
_________Mar. 31

the five most stable stocks

six day decline of

3%

Tea_,.

Gypsum_

the

-

____Mar.

day to day price changes for

tend to remain fairly
stable until the fifth day on which
the
distribution
is
usually an¬
nounced

-

Louis

—2.43

the

first

St.

survey, but with only five stocks.
As we can see, while there was a
definite
depressing influence in

of the average stock under
survey
over
the
10-day period.
Notice

that

were—

and

:

Bag-Camp

The

+0.39%
+0.51

Second Day
Third Day

P.

Motor

and 5

Day

Chicago

Railroad ___——i.—

Cumulative average percentage
day to day changes for 111 stocks
First

usual

shows

market performance
distributions handled

of such

TABLE II

than *; the
Table III

averagq
of five large

that

V (4) This
each

>.

impact".

mar¬

in this way.

all

for each succeeding
day.

high

D-J 20

influence

the

done

was

+ 0.60

—3.00

date,

were

The

—0.82
;

would expect a different

we

ket

Union

111

—1.14

________

(2) Net changes for the first day
of

—1.92

______

Distribution prices

.

"shock

.r

than the

TABLE I

Net

Day
Eighth Day__
Ninth Day—
Tenth Day

-•

Because these must be announced
before the actual distribution

have used.

we

Day

Seventh

fourth

securities

and

"taken

4 The Over-the-Counter
Securities Mar¬
kets, Friend, Hoffman and Winn, p. 122.

these

comprises

issues

re¬

Engle,

be

representation

distributions

1959

liquida¬

had

to

this

New

such

Jan.

Jan.
p.

of

for

all

is

probably often becomes neces¬
sary during the day. I would also

order

change shares in which there have

mation from the news ticker be¬
fore entering their orders.
because of lack of
bids,

in

true

a

first

Edison.

tion

be the first

may

investigation, it might

one

the

10

day in another
series.
Thus, rather than com¬
pounding, these errors tend to

Any

actually happens.

basis

what

dampened by the fact that
not all prospects obtain the infor¬

March

day in
be

sec¬

accurate.

attributes

what

taken

security

a

most

are

considered

The

Announcement

Public feeling toward

been

or

several

SECTION n
on

impact of

study of this question must have

of

Public Feeling

market

—2.77

_

—1.94

investigation of the actual

short term

—2.02

___

Sixth

Market Impact

II

usually apparent.

each

,

Day of Distribution

SECTION HI

customers

that, in fact, the dealer portfolio
participation in these offerings is

of

-

.

—0.64

__

Third Day__
Fourth Day—

day before or after
day of distribution. Thus, be¬

definite bearish

as a

primarily for
so

action

'

+0.30%

;

the

average

All in

of

under survey

First Day
Second Day

stock for each

purposes,

a

ondary distributions is obviously
the best way of
discovering which
idea or ideas expressed in Section

secondary
distributions
purchased by other dealers at

was

the

III

average

percentage
day to day price changes for
five SEC registered blocks

are

decline ensued.

a

TABLE

error

passing "from strong average price of all securities
hands to weak," indicating that •(44/65') to obtain the
percentage
the
new
purchasers
would
be change for each day (+ or —).
more easily induced to sell in case
(5)
For illustrative

study4 over a three-month
period
(September-November,
1949) show that 30.9% of all com¬
mon

suspected

as

he

is
selling
only to diversify his security hold¬
ings in order to limit risk. This

cent

3 How

Banking,

seller will make

a

occa¬

added

cause

this

eyes,

connotations, that

nouncement

riods.

the informa-

2 Fundamentals of Investment

dealer

purpose
of the next
rules, these dealers must
section will be to determine the
given a concession 'from the
net price which the public must accuracy of this belief.
pay.
The results of the most re¬

NASD

probably be the thinness

occurs.

not

particular

Under

the sale should he desire to do
able

(Na¬

are

and most

this

from

Security

should he feel
that the time is unfavorable, the
seller actually has the option of
cancelling or at least postponing
Figures

for

ondary

cases,

as

be

also

the sale.

most

of

members

in

come

NASD

A

large

partici¬
transactions yearly.

such

orders.

customers

other

effort.

number of member firms

pate in

of

Association

Dealers)

offer¬

must

solicit

secondary distributions

selling

The

and

usually handles
such things as the initial publica¬
tion and final price check with
group

and

people's

many

bad

customers

of.

efforts

such

knowledgable
individuals who would

taken

secondary

have

to add to the mystery and it
is often thought that

few cases be¬
fore, there are many final tech¬
nical arrangements which must be
care

larger

the NYSE than

operations

of

source

pages.

discovered before,
blocks of stock from

Cumulative

with
day. I

from the fact that using the
method which I did (see below) I

origin will be forthcom¬

In

tion is

in

(Other

somewhat
on

over

fully investi¬

Exchange Commission before sale.

came

volume
during these few
days). Usually, however, the seller,
will be quite desirous of remain¬
ing anonymous and no announce¬

Should the spread be large, his
compensation will be proportion¬
ately larger and he will be much
more
eager
to call prospective

the

paper

next

selling is often alive during the
day of the distribution and often

many

of

this

origin of the large
block. Thus, speculation as to who

as

It also has

effect

stabilization.

day

changes of

Stock

commisisons to

involved; the group
may or may not decide

the

be

in

be

have

we

will

we

is

curity salesmen toward the effort.

On

to

Exchange was the case in the offering of
shares
of
Union
many as six," 2 327,042
Bagwhile the purchaser pays only the Camp Paper by the Louis Calder
net
price.
The gross spread is foundation last August 18. Here
primarily dependent on the diffi¬ it was also stated that the sale
culty which the syndicate expects was definitely not precipitated by
two

relative costs

distribution or,

appears

seems

of

(commission

deal

will

only large
specific important sources must be
registered with the Securities and

proportions

that

ideas

As

an

1.00% per
believe, this small an error can be
neglected for our purpose.
The

ment

investors

see

we

small

realize

persons

swell

market

we

often

quick turn operations also tend to

individual

and

determine
of

the

rather

when

inter¬

the

these

gated in succeeding

the largest

up

survey,

Thursday, April 28, 1960

the

over

daily bias of +.04%. This

average

to

make

this

of

stabilization

of

which

of

reaction

course, been evaluating their own insiders, or
positions and making individual be in a better position to judge
decisions.
Probably one of their the future prospects of the com¬
biggest encouragements to pur¬ pany than the public, are elim¬
chase is the fact that they will be inating their investment. This has

procedures must be
followed before this type of un¬
dertaking can proceed. The SEC
must be notified by the manager
of the selling group of such ac¬
tivities and the public must also
be given full disclosure that this
technique is being used.
Thus,
depending on the nature of the
issue,
the
market
conditions,
whether the issue is underwritten,
or
on
an
agency basis and the

undertake

close

p.m.

spective

certain

managers

ested

security.

and

failure

risks which could make the block

law,

3:30

which

Securities

the

Under

offer

market

the

security

Exchange Act of 1934, this type
of activity is permitted to protect
the selling group in certain types

to

will

the

trials

part

selective

Thus, in the indus¬

year.

second

question

ticker

Charges and Commissions

also

must

The

the

on

quite

was

entire

Speculation As to Who Is Selling

syndicate

usually

news

but

assumes

least

certain number of shares of the

Stabilization

of

of

particular

decision

the

appears,

associates

a

when

(at

general, the market rose un¬
July 31 and declined thereafter,

til

expectation of
profiting from a quick turn or at
least
capturing this
concession.
Thus,
sales
from
this
quarter
might prove a definite depressing
influence for some days afterward.

stating
certain managing firm and

a

close

day of distribu¬

public

filed

was

by

Dow-Jones

tion.

A

become

nouncement

an additional discount
given to other NASD

be

must

addition

In

would

statement

.

In

concession with the

days prior to issuance). Thus,
the day of distribution, the an¬

on

total

manager

his

will

firms

20

share concession on
allotment, with the
or
syndicate head re¬
small extra amount for

same

their

tion
the

2 each of

cases

.

.

De

Electrodynamics

Pasco

Amphenol-Borg Electronics
Admiral

Corporation

methods

12
21

Mar. 24

Mar. 24

Studebaker-Packar4~74C___The

Jan.
—Jan.

used

Sept. 23
were

the

"

''S

Volume 191

same

Number 5946,

above for each of these

as

present on which
data
is not
available. The steep rise in periods

As can be seen by com¬
parison of these two graphs there
groups.

widely,

more
*\

B

they

also

ex¬

attributable

much

a

utilities, of

issues
that

course,

a

I'Bi
I:

of

are

Commercial Credit
Consolidated

from

Standard

Note

market

necessary

again probably
inducement to pur-

of

as

secondary
distribution, and are often notice¬
able for some days afterward. The
a

Data

outstanding
the

from

the

on

shares

after the successful sale of such

same

source

from

or

The

Table

This

VI.

in

shares

be

can

distributions

the

compared
of

continuous

even,

few

a

mar¬

All

kets shown in Table VII. The five

distributions

Table

in

used

provide

VI

vestors

were—

Illinois____Feb.

American Investment of
Hudsons
American

13

market

five

Table

in

used

VII

indicates

of

some

their

-

Steel

Minneapolis

Honeywell

Fuel

Oil

and
of

be

can

in

senior

a

the

Jersey.*.—Sept.

seen,

affected

tribution while the
remained

1

the five "thin

were

much

by
ones

.

by

supervised
faculty.

have

studies

the

Graduate

-Jan.

29

Virginia Pulp & Paper—

the

in Table

and

actually rose in period 10 toward
the previous equilibrium level. I
would
have
expected that the
average price in Table VI, would
have
fallen
even
more
steeply

Fred

Feb.

13

Federal Department Stores—-

Feb. 24

Chicago & St. Louis RR.
Briggs and Stratton

Mar.
Mar.

2
2

32
50

50

Union Tank Car

Mar.

5

Mar.

5

—

Petroleum

cipal.

Mar. 11

Mar. 23

41%

453/4
41%

Admiral Corp
Great Atlantic & Pacific

Mar. 24

20

20

Mar. 25

44%

44%

Carter Products

Mar. 25

Virginia Electric & Power

Mar. 30

Mar. 30
Mar. 31

45%
38%
71%
60%

45%
38%

Houston Light &

57%
15%

56%
15%
139%
54%

Electronics

Rower

Mar. 31

Apr.
Apr.

—

Inland Steel

TABLE

7

139%
54%

Rochester Gas & Electric

7

441/4

Niagara Mohawk Power.—

Apr.

9

39

Montana Dakota Utilities.

Apr. 13
Apr. 15

Harvester—

(WI)

Apr. 23
Apr. 27

Texas Gas Transmission-—

Apr. 28
Apr. 30

Telephone

...

Reg.—

percentage

day to day price changes for
large distributions in. rela¬
tion to market volume

.

,

.

,

(high ratio)

/

First Day

+ 1.45%

Second

+2.13
+1.96
+1.96
+1.12
+0.33
—0.47

Day

Third Day
Fourth Day

.

-

Day of Distribution
Day
:
Seventh Day

■

Sixth

■

-

Eighth Day__-_
Ninth Day
Tenth Day

•

;

Distribution

price =

—1.26
—1.49
—2.17
+0.46

DES

MOINES, Iowa—General In¬
vestors Planning, Inc.
has been
formed

securities

business.

Lockner is

a

small distributions in re¬

lation to market volume

(low ratio)

Fourth Day--—

Day of Distribution
Sixth Day——
Seventh Day

a

W.

Edward

principal of the firm.

Perry Blaine Branch

June
June
June
June
June
June
June

__—_i

Oil

-—.

Development

—

Co

MENTOR, Ohio—Perry T. Blaine
& Company has opened a branch

office1
der

at

the

1679 Mentor Avenue un¬

management

Maltby.

of

Robert

r

:

MERIDEN,
Conn. — Coburn
&
Middlebrook,
Incorporated
has
opiened a branch office at 43%
Colony Street under the direction
of Robert F. Maloney.

+0.10
+0.36
+0.51
—0.50
—0.80

W. D.

Doyle Opens

is engaging

in

a

191/4
51%
16%

82

82

JJJ

46%

46%
65%
25%
22%

under the firm name of Investors

Advisory Council.

Eighth Day—

—1.10

Ninth Day--*
Tenth Day ——

—1.29
—0.73
+0.49

Distribution price r:

than they did. However, stabiliza¬
tion
efforts
may
have
been




CHICAGO, 111. —Milton Strauss
been added to the staff of

has

Hayden,

Stone &

Jackson

Boulevard.

Co., 141 West

250,000
6,000

503/4

503A

286,000

June 24

58%

58

Colorado Fuel & Iron.

June 29

26%

26%

Harshaw Chemical

June
July
July
July

29

28%

343/4
59%

343/4

National

Gypsum

Utilities.

_—

Cigar

—

Babcock & Wilcox—

Whirlpool Corp..
Stauffer

July 30
July 30
Aug. 10

Chemical
——

Allied Chemical
Allied Chemical

/ Aug. 18

Bag-Camp Paper
Giant Markets

—

American Machined Metals

United

Sep.

1

Sep.
Sep.

2
3
3

Sep.

Artists

Caterpillar Tractor L'.
General Mills (WI)

American

Airlines

Plymouth Oil
Republic Steel
J. P.

—

Stevens

American Stores———
S.

Steel—

-

Skelly Oil.
*
ABC Vending
Vanadium Corp.—
Skelly Oil

-

Container

Corp.
Union Carbide
Hooker Electrochemical

49

29%

29%
97%
33%
42%
49%
30%

24

24

76%

76%

Sep. 29
Sep. 30
Sep. 30

31

31

80

79

123/4
26%

101%

100%

523/4
20%

33%

523/4
20
33%

53

53

29

29

7
13
13
16
20

Nov. 12

General Motors

49

34

Oct. 20

—

443/4
503/4
27%

98

Oct. 28
Nov. 5
Nov. 9
Nov. 10

r—

American & Foreign Power—

Kayser-Roth
Smith, Kline & French

118%

Sep. 28
Sep. 28

Oct.
Oct.
Oct.
Oct.
Oct.

—

—-

118%
443/4
503/4
27%

Sep. 24

——

60%
125

26%

Sep. 24

-—

63

Sep. 28

Standard Oil of New Jersey—-

(WI)

63

Sep. 25

Sep. 23

—

59%
403/4
36%

42%
49%
30%
13%

Standard Oil of Indiana—
Industries—

40%
36%

125

Sep. 10
Sep. 16

-

66

60%

Aug. 18

—

Standard Oil of New Jersey—
Food

16
24

July 27

—

C.I.T. Financial..

29
15

~

•.

1.58

2.24
2.87
3.66
0.48

2.99
2.09

0.98

0.56
0.92
1.26

1.67
1.05

0.48
5.49

68,800
54,000
20,000
96,000
30,000
138,000
457,000
28,800

0.22

70,000
120,000
200,000

0.30

60,400
63,000

0.76

0.65

1.55
0.38
1.17

0.34
0.72
2.44

1.07

0.25

0.21

—

79,500

*

0.66

480,000

0.22

114,000
120,000

0.65

128,000

0.41

0.97

24,300

0.72

168,000
9,600
66,000
110,000

0.18

60,400

0.86

9,600
135,000

0.32

30,000
54,500
140,000

15,900
187,000
12,000
125,000
61,400

3.50
0.64

0.50

6.25

0.40
4.65

0.21
1.51

0.35

6.25
0.31
0.71

94,300
70,000
70,000
51,800
607,000

0.53

55,000
42,000
180,000
607,000
92,000
644,900
162,000
25,500
124,800
84,000
12,600
430,400
23,000

0.55

56,000
23,000
105,200
90,000
73,000

0.33

45,000
840,000

0.18

0.49
0.50
6.41
0.21

1.50
0.85

0.51

0.68
1.08

0.67
1.26
0.43

0.61
3.58

0.70
1.06
.i

0.77
0.85
0.41

1.03

0.34

BIBLIOGRAPHY
Books

Clendenin, John C., Introduction to Investments, New York, McGraw-Hill Book
Engel, Louis, How to Buy Stocks, Little, Brown and Co., (1956)
Friend, Irwin; Hoffman, G. Wright; Winn, Willis J.,
The Over-the-Counter
McGraw-Hill Book Company Inc., (1958)
>
.

Hayden, Stone Adds

38
60%

303/4

Dakota

_

•

38%
60%

65% I
303/4

"June "

Co

Montana

\

47

33%

V

43,067
46,000
13,100
20,000

9%

22%
47%

15

June 16

Refining....

14.64

9%

25%

1.56

0.36

136%
41%

66%

10
15

.

,.

Company, Inc., (1950)
—

Securities Markets, New York,

•

-

'•

-

Blackburn;

Merrill Lynch, Pierce, Fenner

...

New York, November ^16, 1959- ^
Co., New York, (all 1959 issues)

Interviews
Edward

f

.

Periodicals

Merios, Anna, "Spurt in Secondaries "Barrens Magazine,
The Value Line Investment Survey, Arnold Bernhard &

and Smith Inc., Pittsburgh, Pa.

Charles Halcomb; First Boston Corporation, Pittsburgh, Pa.
Rodger Zingerman; Merrill Lynch, Pierce, Fenner & Smith Inc.

■

33,500
13,700
136,400

136%
41%

2

0.52

56,000

52,860
70,000
106,700
73,609
116,400
52,500
17,500
30,000
33,600
42,000
55,000
41,500
52,000
60,000
43,000
18,000
12,000
253,000
30,000
24,000
66,500
,75,000
39,000
43,511
13,500
50,000
34,608
35,000
327,042
125,852
15,000
14,500
100,000
30,000
63,000
152*100
310,000
63,000
697,000
100,800
32,000
54,000
51,500
45,100
300,000
24,500
40,000
18,400
.17,600
90,000
36,903
75,000
220,000

29%
82%
59%

securities business
Delaware Ave.

132

June 23

—

DELMAR, N. Y.—Walter D. Doyle
from offices at 403

132

33%
45%
45%

—

+0.08%
+0.32

68

62%
50%

45%
45%

U.

Coburn, Middlebrook

32%

68

16
June 16

—

Bakeries

Studebaker-Packard

Branch

day to day price changes for

Second Day ——
Third Day——

in

32%

^une-,?
June 10

Sinclair Oil

Montgomery Ward.

Dresser

VII

Cumulative average percentage

First Day—

in the Plaza

State Bank Annex to engage

1
TABLE

offices

with

44

10

June

Garrett

44%
62%
50%

46%

Eastman

Kodak

853/8
46%
33

19%
51%
16%
29%
82%
59%
46%

May 20
May 26
May 27

(WI)

'

461/4

May 20

...

44

33

6
May 11

May 11
May 12
May 19

31%

0.90

0.37
2.62

20,000

,

44%
38%

31%
44%
851/4

May

—

Wrigley
Aluminium, Ltd..

Consolidated

General Investors Planning

VI

average

6

Apr.
Apr.

Union

Cumulative

1

504,000

1.18
3.09

i

100,000
126,225
1,800,000
20,000

60

0.64

.16,000
75,000
2,000,000
33,000
15,000
35,000
31,000
36,100
35,000
47,000
330,000
.70,000
21,600
21,000
/ 128,739
50,000

42%

71%

50,600
53,000
39,200
178,500
86,000
96,000

27.85

35%

Idaho Power

Ratio:
Shs. Offered

9,600
60,000
51,300
10,000
19,000
30,800
210,000
17,900
64,000
63,100
109,500
28,200
60,000
120,000
64,800

101%

42%
453/4

Trane

.

35%
101%

Mar. 11

Union Pacific Railroad.———

.V.\

>

Hooker Electrochemical

Union Tank Car

securities business.
Chemidlin, Jr. is a prin¬

J.

53%
31%

9

Field

American

to engage in a

20

53%

5

Atlantic

FANWOOD, N. J.—Family Inves¬
Company has been formed
with offices at 215 North Avenue,

20

Feb.

The

tors

43%
44%

41%
77%
27%
43%
44%

77%
27%

Feb.

Mission

Family Investors Co.

dis¬

47

-

American Investment of 111

Tidewater

School's

65,700
225,973
50,000
19,263
452,155
30,000
15,000
94,500
115,000
• 28,700
70,000
15,000
628,722
37,500
62,451
35,000
100,000
35,600

29

First National Stores

been

48%

28

International Harvester

more

stable

more

research

financial

121,800

Jan.

Louisville & Nashville RR

De¬

39

Jan.

Warner Lambert

of Industrial Management at
Carnegie
Institute
of
Technology
and
hopes to receive his degree in June. His

_June 29

Iron

New

issues

drastically
VII

is

39

17%
30%

A.C.F.

partment

..June 10

Harvester

Colorado
Standard

As

author

*The

15

62

____

International

market"

April 6
Regulator— May 19

jan.

38%

62%

were—

Inland

60%

17%
30%
41%

Allied Kid

solutions.

60%
38%

27

Schering Corp.
Tung-Sol Electric.
Standard Packaging
Thompson Products
Minneapolis-Honeywell

and

9
12

22

Detroit Edison

1

jan.

Jan.

Kelsey Hayes

as

encountered with
of securities and

32,500
62,800

•

Jan!

Jan.

International

a

problems
various types

Trading Vol.

General Acceptance

American

performance of secondary

the

Sept. 3o

Stores

American

of managing

Trading Vol.

48%

General Public Utilities

distributions. It also touches upon

July 16

Cigar—

-

This

secondary dealers

Offered

47

Cone Mills

all, this work should
information to both in-

and

the methods

to

Bay Mining and Smelting.Mar. 31
Bakeries—
__June 16

Consolidated

The

in

Price

19

Hudson Bay Mining & Smelting
Ford Motor

purchase should cer¬
tainly be explored by traders and
investors
when
the
security in
question would-«be - suitable*-for
addition to their portfolios.

high
ratios (thin markets) is shown in

Price

21

—

of

avenue

movement of five stocks with

With

distribution.

before

but

average

to

(1959)

21

Amphenol-Borg

block,
although
they
probably
experience a depressing influence
for some time after registration,

of

N.Y.S.E.

Jan.

Amerada

a

available

is

Manuals.

Moody's

number

Monthly

Shares

Jan.

N. Y.,

size and extent of these influences

percent of total outstanding

a

shares.

Approximate

of

button

Jan'

Marshall

almost

dependent
upon
both
the
volatility of the security and its
very large block forced upon a
marketability (thinness of mar¬
market with few bidders would
ket).
Both
the
measures
of
be
expected
to have
a
larger
volatility and thinness of market
impact than one which could be
which were used are, I believe,
more
easily absorbed. Some in¬
adequate. They could certainly be
dication of the relative size of
useful to security dealers, if not
market versus size of the distribu¬
already in vogue, in planning and
tion can be gotten
by dividing
executing future distributions. It
the
number
of
shares
in
the
is, for instance, conceivable that
secondary
by
the
approximate
in some cases, the ratio of number
trading volume on the floor of the
of shares to trading volume might
New York Stock Exchange during'
be
too
large
and
the
market
that month
(see Table VIII for
unable to absorb the shares.
In
these ratios). The higher the ratio
this case, division into several lots
the larger the distribution in rela¬
for later sale
might be a wise
tion to market. Trading volume'
solution.
data
was
again obtained from
Previously announced distribu¬
The Value Line Investment Sur¬
tions tend to act more favorably
vey which gives monthly trading

Thus,

Number

Distri-

Closing

United Aircraft-————

*

31

Date

Cerro De Pasco

West
are

are

of the market for it.

ness

Indiana—

First National Stores———

the surprise

upon

announcement

stock and the thin¬

of

San Diego Gas & Electric.

always present

we

Oil

———

Aluminium, Ltd
Filtrol Corp

was

—

Electrodynamics-

McGraw Edison

the' five

Stores).

discount

Pay<

STOCK

Conclusion

impact of a distribution is the
relationship between the size of
block

(American
the

of

one

Depressing influences

Another circumstance which

VI

chase.

would expect to affect the market

the

to

(.66%). This

distribution.

h*

Table

VIII

Distribution.

closing given in the stocks with a
thin market has been quite large

declined even
less than the average of 111 stocks.
Thus,
we
may
conclude
that
stability is also one of the major
influences
in
determining
the
market
impact of a secondary
•*

of

two

(1855)

TABLE

unexplainable and must simply
represent a random error. It is
interesting that almost all of it is

wider total
decline (over 5%) than any other
group. This was almost twice the
average decline. The more stable

perienced
S3

but

and

ohe

much difference. Not only did
the volatile stocks fluctuate much
is

I-",

The Commercial and Financial Chronicle

0

Pittsburgh* Pa.

'

••1

■xm

32

(1856)

The Commercial and Financial Chronicle

.

.

I'M

Thursday, April 28, 1960

.

1

t!

STATE OF TRADE AND INDUSTRY

shipments

Continued from page 5

indicating

tem holdings of U. S. Government

summer,
the
will begin to

securities.

ing

;

pattern

lows for the year.

I:

Yields

of

ernment

tively

bonds

stable

have

since

been

then.

cancellations

some

new

point

orders

new

on

The

timating

Yields

orders

Treasury securities rose sharp¬
ly in the second week of April,

has

it'

and

J
I
fl m

mid-month

bills

was

low

of

the

weighed

market

2.68%

March

on

25.

"The

On

March 31, the Treasury announced
the terms of its $2.5 billion fK

which

nancing for April, which included
a two-year note at 4% and a 4^4%:

this

Common

stock

prices

creased

somewhat

March.

Trading

mained

in

rate

report

that
off

listed

of

estimated

other

compact

a! mere50%
.

business

about

65%

of

is

rate.

and

Saturday
clude
bler

at

have

since

volume

The

in¬

at

idled

all

Ford

mid-

has

the

Climb

in

failures

10%

rose

to

1,335 in March, the higest level in

in

groups,

all

functions

The
size

save

re¬

tailing, and in all except two of

1$}

the

nine

gions.

major

geographic

in

the

nual " rate

if-

of 1958.

Spring

failing

at

their

Concerns

in

recent

to

in

out

production- of

and

changeover

Dollar liabilities climbed 15% to

and

$70.2 million, the heaviest volume
11

months.

As

into

move

a

the

Isji

Failures

low

business in¬

new

corporations in March

sharp¬

rose

ly from February, but was down
moderately from March 1959, re¬
ports Dun & Bradstreet, Inc. This
the fourth successive year-to-

was

decline.

which

il'i

,!■

the

was

March

any

437,

18,176

current

to 17,the
prior
4.1% below
came

from

but
March

of

total,
highest for

second

record,

on

18.9%
14,669,

up
month's

the

The

a

year

the record for the month.

H
j V"
Vr.
'

i* '■
£~.

ago,

a

year

The current three

ago.

in¬

was

a

there

second

pickup

With

into

of

in

users

a

Show

in

July

substantial

ton¬

Year

fact,

that
June

there
new

order

is

better

than

should

month,

the

will

are

the

market

Co.

outlook

May.

bottom

out

half

second

The

in

order

service
been

be

to

when

ready

in

tons

Bank

clearings

show
a

year

by

the

country,
week

will

with

the

chief

ended

clearings

of

for

Saturday,

for

all

April

cities

weekly

be

7.2%

above

corresponding

-week

1 9 5 9.

centers
Week

was

last

—

stand

in

sum¬

money

000 Omitted

1959

%

1,513,915

1,189,042

1,373,000

1,148,000

741,017

721,601

+

5 9

+19.6
2.7

Steel Operating Rate
Expected
To Go Lower

even

the

picking
industry

headed

are

up

somewhat.

operating

for

rate

But

is

ingot

drift

cast

and

Detroit,

steelmaking.

wildcat

strike

are

magazine
slower

still

reported,

rate

than

but
in

at

the

shipments

exceeded
4.5

million

ventories

tons.

18

13.5

the

a

turnabout
45

day

the first

last

week

leadtime

for

-

estimated

an

week,
"Ward's
Reports"
said
on

reporting service

would

second

said

of

account

total

only

industry

to

29.6%

reached

ended

April

9

the

by 6%

for

about

output,

record

during the
(39,408).

of

week

April 23, the
compacts totaled 37,263 and rep¬
resented 27.5% of U. S. produc¬
tion.

.

"Ward's" added that most of
the six U. S.-built compact makes
are
expected to make good pro¬
duction gains over last week and
_

The

down

to

revenue

American
This

Railroads

was

week

an¬

decrease

a

1.9%

or

cars

below

The

in

to

contrasting

1959

of

51

service

and

loaded with

one

or

trailers

week

five

of

in the
38.

was

the

were

in

were

more

in
1960

included

in

that

total).

This

April

was

corresponding week of
5,696 cars
or
118.3%

totaled

144,983 for
43,943 cars or

of

in¬

an

43.5%

corresponding period of
and 81,163 cars or 127.2%

1958.

corresponding period in

There

class I U.

51

were

S.

railroad

systems originating this
type traffic in the current week

compared

with

47

one

year

ago

corresponding week

1.7%

East

Trade

Barometer were 1.7% be¬
low production
during the week
ended April 16, 1960. In the same
week new orders of these mills
were 6.2% below
production. Un¬

For

to

of

35%

reporting
of

gross

mills
stocks.

reporting softwood mills,

un¬

filled

orders were equivalent to
days' production at the current
rate, and gross stocks were equiv¬
alent to 52 days' production.
19

For the

of

North
to

Cen¬

24

lighter

reported in

the

off

to

in

and
from

declines

Middle At¬
74

from

83,
Pacific, off to 66 from

other hand, casualties
during the week in four re¬
gions: the West North Central,

year-to-date, shipments

States.

Wholesale Food Price Index

{••4

Highest in Seven Months

compiled by
Inc., edged
week

for

week.

It

19,

the

index,,
Bradstreet,
fractionally this

Dun
up

the

&

third

stood

highest

were

new

,;4

f'

consecutive

at

$5.98 on April
level since Sept.

ri

16, 1959. The current index was
0.5% above the prior week's
$5.95,
but

2.9%

below

the

corresponding date
Commodities
wholesale

a

$6.16
year

quoted

cost

this

of the
ago.

higher

week

in

were

flour, oats,

barley, hams, bellies,
potatoes and steers. Down
price were rye, lard, butter,

cocoa,

in

cheese, sugar, cottonseed oil, eggs,
raisins, hogs and lambs.
Dun

&

Bradstreet,

Inc.

wholesale food price index
repre¬
sents the sum total of the
price

pound

of

31

raw

foodstuffs

a

cost-of-living

function

is

to

index.

show

It is not

Its

the

chief

general

trend of food prices at the whole¬
sale level.

Wholesale Commodity Price Index
Slips in Latest Week

Reflecting lower prices on lard,
hogs, steers, lambs, hides and
rubber, the general commodity
price level slipped from a week
earlier.

The

Daily

Wholesale

Commodity Price Index, compiled
by Dun & Bradstreet, Inc., stood
at 274.58

corresponding date a year ago.
Most grain prices moved within

week ended

mills

production;

'if;

ih

The wholesale food price

or¬

below
were

-

in the comparable week of 1959.

8.0% below production.
Compared
with
the
previous

6.4%
ders

identical

J

were

(1930-32 = 100) on April
25, compared with 275.30 in the
prior week and 276.76 on the

reporting

■V

s ,1

Central and

Year-to-year
mixed; with five re¬
gions suffering heavier tolls and
four having fewer failures than
trends

per

shipments of 470 mills
reporting to the National Lumber

orders

k's

regions.

45 from 57

Atlantic

States,

w e e

and meat in general use.

Lumber

filled

busi¬

On the

The

Shipments Were

..i

year ago

major

fell to

and in the

1958.

Lumber

,

52.;

revenue

9,

over-all

a

the

nine

the

South

lantic

rose

above the 1958 week. Cumulative
loadings for the first 14 weeks of
1960

,

con-

concentrated

Somewhat

but

increase of 2,485 cars or 31.0%

crease

iw

>

(piggyback)

ended

the

fv:|

;

but other lines had fewer casual¬
ties than in 1959.

Mountain

and

i/1

de-;

from

construction

succumbed than

nesses

70.

Loadings in the week of April
16, were 24,251 cars or 4.1% above
the preceding week.
There were 10,511 cars reported

1959

0

y •' ^

rise

1958.

above

V,

under.

28, and in

down

East and West South

an

oc-

in
service
lifted its toll to 28 from 20. More

the

increase of 88,128 cars or 16.5%
the corresponding week in

week's

also-

casualties

noticeable

above

(which

V-4

in

from

24

struction,

tral States

freight for
April 16, 1960,
totaled 622,635 cars, the Associa¬

the

259

liabilities

most

occurred

Failures

ended

week

amounted
es¬

In the week ended

in¬

June

output

22.

29.4%

mil¬

when

car

last

previous record of 40,700

a

signs

auto

The

and

million.
saw

small

timated compact car production
of 43,280 units would surpass the

,

Steelmakers
of

one

help raise this week's

over

April

imports
by about

Consumer

jumped from

lion tons to

will

Automotive

and

consumption

for

record

S.

9%

-

1.9%

Ended April 15

car

involving

if fir
■

retailing, off to
160, while; milder dips
prevailed in manufacturing, down
to
44. from
48, ;in wholesaling,

the

Below Last Year's Record

and 39 in the

industry high for
production plus a

small

Geographically,

Below Production for Week

U.

first

of

High Level

new

rising, the

a

Loading of

highway

from

decrease

A

-

among

.

from

253

and

v

$5,-

from

136

of the previous
13,263,000,000 kwh.
gain of 675,000,000

Ended April 16 Down

above the

all-time

year.

earlier

of

.

Freight Car Loadings for Week

the operating rate
1947-49 weekly produc¬
*157.3% and production

*163.5%.

week

downturn

an

dipped to

more

Easter.;

that

5.4% above that
comparable 1959 week.

above the

or

a

V.

.

liabilities

industry and trade groups
except commercial service, tolls
ran5 lower
in
the; week
after

energy

or

is

ago

267

cline

Compact Car Output at Record

make

plete their inventory adjustments
and
resume
buying on a scale
that's geared to consumption.
are

fore¬

capacity,

production is based on aver¬
production
for 1947-49.

weekly

compact

stability. Steel order
firming as users com¬

Inventories

Estimated

week's

that

on

2,627,000 tons,

..An

in

below

showed

1959,

♦Index of

operations
up 2.8 points
to 80.9% of
capacity.
Output
was
about
2,305,000 ingot tons.
"Steel" predicted that the in¬
dustry is now entering a period
relative

this

or

in 1939.

with

"

week's total of

of

1+3

b

the

In all

13,213,000,000 kwh., ac¬
cording to the Edison Electric In¬
stitute.
Output' was
50,000,000

but

in

year

ranged

timated at

kwh.,

occurring

$100,000 for 33 of the confailing during the'week, as 1'
against 28 in the preceding week.

10-year high

electric

300

cerns

by the electric light
and power industry for the week
ended Saturday, April 23, was es¬

of

were

of

tons.

net

of

turned

production,
"Steel," the metalworking weekly,
reported on April 25.
Recovering from Easter holiday
a

capacity

2,527,000 tons. A year ago the ac¬
tual weekly production was placed

age

and

annual

for

based

(based on
tion) was

in

cutbacks

1960

148,570,970

two-month

a

1,

percentage

at

operations

last week to end

domestic

further
sharp
de¬
clines, "The Iron Age" says.
Throughout late spring and into




reflect

now

quarter. In the first three months,

holding steady,

op¬

on average

A month

Stable Period

,

Steel orders

Steel

the

79.4%.

economy.

Steelmaking

+27 3
+

Jan.

have

Says Steel Industry Is Entering

books

$13,140,902 $12,404,224

Boston

at

$24,892,-

follows:

1960

Chicago
"
Philadelphia

the

year.

week

same

principal

as

23-

York__

of

comparative

the

Ended

April
New

Our

for

mary

overall

the

clearings

preliminary totals
$26,676,827,205
against
for, the

the

up

the

factors

operations will

downward

23,

of

those

Our

878,684

artificial

the

United States for which it is
pos¬
sible to obtain
will

the

can

been eliminated from the market.

advices

that

and

that

ginning April 18, 1960 was equal
to 78.5% of the utilization of the

figures

cities

indicate

Iron

erating rate in the 80's in recent

that

of

April'

the '

above

distributed

corresponding

*139.3% and 2,238,000 in the week
beginning April 18.

has

weeks.
that

amount

12,213

79.4% of Capacity

Actual output for last week be¬

"Chronicle"

telegraphic

upon

from

week

compared

Preliminary

ago.

compiled
based

this

increase

an

about

op¬

best

nine-hour

1959 Week

The

ended

j

$5,000, which turned down to 30 :
from 41 in both the previous week
and a year ago. Liabilities

the

near

000

last

Electric Output 5.4 % Above
.

the

where

up

steel castings
weekly produc¬
tion
of
1947-49).
These figures
compare with the actual levels of

quick

keeping, the

a

in-

,week; last

of 316

those

10,000 units.

:

tion

announced

of

(based

steel

This

go

will

outlook

for

needed.

factor

a

about

Zinc

erating rate of the steel companies
average *140.8% of steel ca¬
pacity for the week, beginning
April 25, equivalent to 2,261,000

the
next

semi-finished

in lead.

may

American

Institute

substantially better.
anticipation of sudden new
orders, mills are building up in¬
of

lead

On

be

ventories

at

the

curred

Dodge
plant is expected to
Dodge-Dart \Division

boost

about

declined

week

308

Failures

plants.

two

shifts

nounced.

for

If

of

of

output to

car

is

This Week's Steel Output Based

signs

some

help

kwh.

but still in balance

up

are;
cent.

1

In

Steel

-

be

they

have

And, they will want quick
delivery when they do.
In

^

prospects look
"Steel" reported.

for-1960,
production of both metals

nages.

The

7.2% Increase Over Last

a

of

zinc

change is expected
prices should hold

the

may

the market

for

August

and

schedule

Hamtramck

consumption.
Demand for
expected to climb 10 to
15%; lead 4 to 6%. Stocks will
go
down
in
zinc,
while
little

inventories cut

bone, steel

come

and

indications

good

ton

zinc

of capac¬

cent

per

are

half.

to the

up a

Clearings for Week Ended Apr. 23

half

week,

the

in

from

level

with

be said for
sharp 42.8%
the market today is the pickup in
from the 35,216 of the comparable
some
orders
means
that inventory
1958 period.
;
control is coming to a
halt, and
month total

than

last week.

gross
Lead

would

,

During the first three months of
this year charters came to 50,295,
for a decline of 4.8%
from the
record first quarter total of 52,853
of

(as

possible

to

The number of

year

60's

But

Month

|i|

less

consecutive

283

V'-';

«■

the

and the
329 in 1958.
Also, business mor¬
tality was 10% below the prewar

continued

program

Motor

assembly

are

It said

a

ity) in late June.

size groups.

March New Business Incorpora¬
tions Up
Sharply from Prior

prod¬

orders.

good

period.

result, it will not be sur¬
prising if the steel industry's op¬
erating rate falls into the mid or

involving
liabilities in
excess
of
$100,000
rose most
noticeably, although in¬
creases
also
prevailed in other

1.1!

at

in

steelmakers

heavy melting, remained at $33.66

1960

L

in

variations

some

"Steel's" price composite on the
bellwether grade of scrap, prime

industry is getting ready

close

models

- -

letdown period

summer

the auto

an

listed businesses.

If;!

dropped

of

mix,
operating

at a time when metalwork¬

comes

apparent an¬
51.1%' per
10,000

of

Because
uct

ing is at the bottom of its seasonal
cycle.; Users
are
heading, into

However,

were

that

out

incoming

is
not
fully realized. In
major mills, the rate of in¬

re¬

casualties
re¬
mained below the tolls registered

ii-t

points

'which

capacity while others are running
full blast. Among the hardest hit
coming orders: had dropped to a
companies are producers of wire,
level that was equivalent to only
stainless
steel, and oil country
35%; of the mills' potential output.
pipe. Firms that make flat rolled
"Iron, Age"" further : cautions products still have backlogs.
that! the
leveling
out rof.-, new Some will ship at
capacity this
orders
to
meet
consumption month and next, despite a drop

March

any month since May 1958.
increase occurred in all

f)

to

"had

weeks
some

Business

magazine

depths

orders

re¬

A

third

from

Dearborn, Mich., was
week
together
with

three

"

for

similar

plants, Ram¬
Wis., and five

Kenosha,

*

preceding
week, reported Dum& Bradstreet, Inc.
At the lowest level in eight ;
weeks, casualties were off slightly

Studebaker-Packard, and Im¬

perial

down

21

as¬

These

continuing

to

com¬

most

ures,

Chevrolet

A four-day

r

Ih

Commercial and industrial fail-

Ford Motor Co. sites.

at

t

Business Failures Continue Down

pro¬

"Ward's"

>

operations.

six

below;

9.6% below.

were

; For Third Consecutive Week

sembly plants in the industry are
operating on five-day programs
and thfat 11 plants have scheduled

the

6.0%

were

and new orders

makes

of

success

production.
the fact that

car

said,

has

of

spite of the market's firmer
tone, steelmakers are not booking
as much tonnage as
they are ship¬
ping, ''Steel" said. Many products
are in light demand
and will not
have
an
upturn until June- or
•July.
V'

!

.

Adding to the
pact

consumption,

their
at

*

In

-

period.; .But

.

low; shipments

The

as
5,600, Corvair; 11,600, Falcon;
7,000, Valiant; 11,300, Rambler;
and 2,680, Studebaker-Packard.

April
orders
have
been" 5 to., 10% better than 1959
figures.......
•

\

..

Comet

record

a

units.

"Ward's"

June

November-February

March

to where they

up

offset

centers,

of metal

leveled

peak

of

^ gain brought,the rate of in¬

coming orders,

moderate.

Failures

i til

recent

will

service

in the rate

Age"; cites one mill
reported a 30% increase in
a

5,100

duction

often
among the first to notice changes

new

<

■:

purchasing
companies
that

cancellations and setbacks.

Iron

orders in

new

v.

V

perspective.

proper

normal

that

Co.'s

hit

high
previous
record for Comet production had
been 4,404 units two weeks
ago.
of

re¬

take

amounts

Motor

will

-

■iw

*

in

placed in

,

lib

It

against the low

have

Ford

probably

.

observed

eceding weeks to be

p

three-month Treasury
3.56%; compared with its

on

in

that

orders,

tonnage in May
-ordering steel for June de¬
livery—not in huge quantities but

recent weeks. The pickup must be

bonds due in 25 years and callable would
support
in 15 years.
' <.,
'capacity.

ip

4

at

yield

been

they

Many

not

Steel

the " pickup

that

on

Consumers

are

metalworking
against overes¬

cautions

the

routine.-

be past.

may

that

to

would

national

weekly

rela¬

and

expired.

lot of last minute

a

turned

slowing

a

rush orders indicate the low
in

corporate and state and local gov¬

■tr.

picture
consum¬

major steel
post-strike correction

period is not over, but

Yields on fixed income securi¬
ties generally declined further in
the second half of March,
reaching
new

order

of ,the

The

users.

Security Markets

steel

follow the

sent in

April 9, 1960, produc¬ a narrow range this week and
tion of reporting mills was
3.1% finished close to a week earlier.
above;
shipments
were
10.8% Wheat supplies Were
light and
above; new orders were 6.0% be¬ trading was
steady holding prices
low.
Compared with the corre¬ close
to
the
preceding
week.
sponding week in 1959, production Towards the end of the
week, the
of reporting mills was
0.1% be¬ buying of wheat by flour mills

m

"

4M

*

+ ft&v

<•*»-» <a

w^wttwt

f?.

mi tu- itvt'kt.

>mv

n.utsm»»«m. «»vi

•

$

■I
Volume

-I'-'v/i

1"
y

191

Number

5946

.

.

The Commercial and Financial Chronicle

.

(1857)

33

■

.'■

$■:
•a&L-

ESEEES3& THE SECURITY I LIKE BEST ...
purchases declined moderately.
Although supplies of

limited, transactions

i "3*

and

i

prices

from

corn

were

showed

little

were

sluggish
change

week earlier. A moderate

a

increase

occurred

reflecting

higher

of

chases

in

oats

prices,

volume.

soybeans

Pur-

dipped

from

the

preceding week and prices
slightly lower; soybean receipts
were
close
to
a
week

KJ

were

II

earlier.

fi

flour slackened

Although

domestic

trading s in

during the week,
export buying was sustained at a
high level,; with sales to Latin

I

Sr.-"

America

and

The

Netherlands;
up fractionally

flour

prices were
from the prior week.

I'l

continued

ing

v'.2

both

K*'

steady, reflecthigh buying for

domestic

and

Sizable * quantities

allocated

to

export

of

Israel

use.

rice

and

were

Mexico.

Although trading in sugar lagged,
prices were unchanged from the
preceding week. Supplies of coffee
were light and trading was
sluggish, but prices equalled those of

|:1
■fst
■p4
1

Hi

will propose an exchange
offer to the "B" shareholders in

million

order

trust

York

from

the

preceding
the

New

Cotton

Exchange were unfrom
a
week
earlier,

to about

came

163,000 bales, com-

pared with 176,000 the prior week
39,000 in the similar week a

and

year

For the current

ago.

season

through April 19, exports totaled
estimated 5,150.000 bales, compared with 2,072,000 in the comparable period last season.
an

Easter Shopping: Helps Expand
Retail Trade Volume
There

was

marked

a

rise

^
,

in

consumer

buying in the Easter
April 20, and volume
was
up
sharply from the
comparable calendar week last
week

ended

year and

similar

appreciably from the

up

1959

Easter

Whether this

new

current

4+4%

of

$13.3

collateral

outstanding.

rate

the

At

payments the

issue

retired, the sinking fund
requirement under the first mort¬
bond

gage

indenture will

be

re¬

from

duced

$2,314,770 to $771,590
a savings of 82$
"A" share.

and will result in
per

The

in

combination

the

burden

of

of

reduction

a

mandatory

ap¬

week.

On

a

than

to

earn

could

have

dynamic

a

ef¬

1959,

the

million,,, Dividends

on

quirement ($9,359,785)

Bankers

in apparel, while vol-

in household goods was down

Scattered reports in-

dicate that volume in

level

and

from

a

The

was

passen-

at

high
-appreciably

up

a

ago.

year

total

new

sustained

was

cars

dollar

volume

of

re-

comparable calendar week
ago, according to
collected
by Dun

Regional

from

the

&

a

year

estimates

spot

Bradstreet,

estimates

comparable

varied

1959

levels

case

were

to

it not for

mortgages.

before

the

These

from

deductions
"A"

income

dividend

can

paid. They amounted to $7,174,113
in
1959
and
reduced
earnings

$7,174,113 was transferred to appropriated surplus and
the difference between earnings
available

for

dividends

and

Atlantic
Central

+19 to

+23; East
+22; Middie Atlantic
+10 to +14; New
England
and
Mountain
+8
to
+12; West North .Central +7,to
+ 11;
East
South
Central^ and
+18 to

-

Pacific

Coast

to

+5

+9.

"g"

Department

country-wide basis
the

Federal

dex for the week

1960,

increased
like period last

ceding
crease

12%

ended

the

year.

the
the

$1,335

per

are

many

elements

ended

the

April.

April

16

a

over

Federal
federal

16

ReKe-

increased

the like period last year.

preceding

week

ended

April 9 sales increased 21 %
the like period last year,

over

For the

four weeks ending April 16 a 14%
♦'

increase

was

period,

4.

the

reported,.over
and

from

Jan.

1

to

f

^April;^l6'YshowedJ"a




5%

Growth

throughout the

women

Association

Women

will

Nancye

B.

of

be

the
of

headed

Staub,

the

Na¬

Bank

b+ Mrs.
Presi¬

former

NABW

Trust

and

increase

to

the

negate

Costs

of

include:

Jane

Assistant

Hanover

Ruth

Secretary,
New York
Irish,
Assistant

Bank,
F.

place.

fund

Such

were

reduced from

1958

to

Bank

Reserve

of

New

Trust

Co.,

Buffalo,

and

New

of
cooperation
with the ABA Committee, which
is headed
by Casimir A. Sienkiewicz, President of the CentralPenn
National
Bank,
Philadel¬
of

program

assist in ' distribution
material prepared by the ABA
will

nQ»w

2%%. of

problem;

growth-inflation

and

operating

in-

tion

planning. Others

or

waterfront.
who

can

They

There

cope

sell

are

cover

the

salesmen

with this situation.

corporates,

listed

and

unlisted

issues, handle
trading
accounts, investment accounts,
tax

make

exempt

business is

bonds.

Form

Raylan Planning

Planning

Corp.

is

securities business from offices at
1 Sunrise Plaza.

Officers

are

Mil¬

dred
&

Nevins, President, Secretary
Treasurer, and Raymond Chase,

Vice-President.

Roberts
was

4

under
&

best

mslly required prior to 1959 un¬ Alexik

& Co.

they

had

cashiering,
place where they could
buy, sell and trade securities, they
and

a'

could have their

shop.

own

And

Requires

Drive

at

Knowledge

the

knowledge.

the

firm

name

Roberts

Mr.

with

of

Di
'

Roma,

If

he

answer

eral

indictment

curities

of

the

a

se¬

business.

However, many
opportunists. They go
along from day to day and the
larger the organization the less
personalized
and
direct
is
the

firms

are

mu-

"I'll find

He

out

wanted

an

it. If an excep¬
to be had he told

was

didn't

have

mumble,

for

and
you." This

say
man

One fine day ne was offered a
block of bonds that he knew were

a

to be called in about five
The bonds were offered at

price that indicated to him that

the seller

know

(a professional) did not

that

a healthy reserve fund
being created that was spe¬
cifically
earmarked
to
manda¬
torily pay off those bonds at 104.
He quickly snapped them up at a
price that enabled him to go to

was

his

sales

organization rand
tell
they could reoffer at 98%.
This provided a net tax free re¬
turn of about 4+2% (after capital
gains tax on the gain to call date).
told his salesmen

He
he

them

told

why

the

these

story;
bonds

going to be called, he had
figures and the facts to prove

were

the
it.

he did

But

not

stop there. He
they call some of
those people each saleman had on
his regular mailing list who were
suggested that

customers.

break

Here

to

an

was

accounts,

open

with

ice

the

some

op¬

to

more

customers. The men had
compelling reasons for urging the
purchase of these bonds. They
good

very high quality and they
bargain priced.
;

were

is motivation

the di¬

with

rectness and

compulsion that real
salesmen appreciate and to which
they react favorably. They don't
want
run
of the mill offerings
dumped upon their desk in such
they cannot be prop¬

volume that

erly

They tolerate

screened.

but
that

vidual

grind out the same old hash about
next week's new issues that, in

and

his

firm.

with

situation

the

volume

is

when

degree, 'of' control
the

over

trading

partments.

is necessary to
a

is
and

fair

maintained
sales

de¬

-

.

maximum

For

overall

increasing and ja

effectiveness

place

a man

it

at the

retail sales organization

knows

security
salesmen,
their problems, and how to solve
He

should

cultivate

and

should
firm

be

that

how

to

service

able
all

to

them.

convince

He

his

are

a

part of the sales department and
that everyone in
the entire or¬

ganization should be sales con¬
Buying
must
be
good,
cashiering efficient and aware of
its h)le in establishing and main¬
taining favorable public relations,
advertising timely and geared to
sales efforts, and, if it is a large
firm, each branch office should
have

a

branch
work

man

at

the

head

of

office sales force that

with

these days, are

the

salesmen

in

that

coming
They

vaingloriously.

so

fast and

inter¬

are

in

ested

specific ideas than can
make money for their customers.
This
can
best
be
provided by
leadership
izes

and

also

salesmen

their

that

heart
is

sales

the

at

level.

investment firm that real¬

Every

core

doing

a

their

of

are

the

business

better job for its

customers.

Vazquez Opens
NEWARK, N. J.—Adelino J. Vaz¬
quez

departments

sales meetings

desire

all types of invest¬
speculative
accounts

and

how

understand

4

them

do not

salesman

-v

to

communication between the indi¬

Many firms appear to be contented

;

knew his bonds.

This
gen¬

retail

a

of my acquaint¬
his business. He

they

had

tional issue

Top.

This isn't intended to be

wit¬

in this sales organization re¬
spected the municipal man for his

were

Leadership

other

have

developed an excellent clientele
buyers of tax exempts. Every¬

portunity

If

their

any

man

not

do

to

much

curities business but they also had

their firm's facilities to

scious.

Roberts.

formerly

suffi¬

men

I

for

so

of

advantage.

use

ment

Y.—Raylan
engaging in a

by

good under such conditions

They

to

VALLEY STREAM, N.

together

is

was
connected
with
a
medium
size firm that employed about 10
salesmen. They did a general ser-

Each

hodge-podge

a

in reality a one-man business.

are

them.

Street

an-

sales organizations seem
along with little or no direc¬

to go

who

base'd

million'

liai¬

a

coordinated activities.

head of

women's
groups
on
various aspects of the problem.
by

business from offices at 133 Locust

revenues

stead of the fixed $11

that

Some

action

1959, and
on

of such

stimulate interest, discussion, and

Roberts Formed
appropriation Roberts
appropriations HOLYOKE, Mass.—William Rob¬
$7.2 million in erts, Jr. is engaging in a securities

$3.8 million in
0„
wju be

leadership

top partners to the cashiering de¬
partments, have seen the benefits

H.

calculating the capital

expenditures

from

of rising

0"^margin. During

method

took

pressure

the

between the sales department
and the rest of the
firm, from the

County, Morristown, New Jersey.
will

knew

around,

someone

The

i

who

ance

man

why.

with

It

Some years ago there was

nicipal bond

grope

firms with branch offices
have discovered that the salesmen
in branch offices need direct con¬

sales

situations such as
the following illustrates very welL

them

Large

■

many

should have it at the point of sale.

the

terrb;ory which it serves includes phia,

been. progressive in attracting
new. industries to its territory and
originating services that have effectively counteracted increasing
competition from the truckers. Its
plant is in excellent operating
shape. Electronic controls have
been totroduced where feasible—

have

the

than

procedure.

so

leadership at the sales level. You

Officer of the Trust Co. of Morris

Traders

some of the fastest growing see¬

must

are

collected

of

York.

of

themselves
You

ciently versatile and accomplished
to
do
their
own
thinking and
working. Those who survive and

committee

new

sonnel Officer, Manufacturers

The

salesmen

successful.

lems.

Federal

"B'

switching
yard
modernized.
In
System department, store
short> the company has been doin New York City for the ing everything within its power

over

1959

by

Economic

for

York; and Gertrude E. Topp, Per¬

earnings increased

,

week

17%

-to
to

the

more

by $54.3 million from 12/31/55 to
or

of

o n

in-

above

ended

retained

As¬

tions of the middle and Southwest Committee; suggest additional
to
help
explain
the
April. 16, United States. The company has material

was registered
period in 1959.

Accord in
According

In

taken from

increase

sales

«

In the preApril 9 an inof 18% was reported.
For

same

serve

a

on

vxn

Board's

18%

of

strength in the MOP picture.

for

week,

the four weeks
the

as

price

slightly

the

McWhinney,
Manager,
market
statistics
department,

earnings added to surplus in 1959.
Total

There

sales

Reserve

only

to

are

country in growth-inflation prob¬

line

share.

Week

store

aiuuclH

market
is

somehting that I be¬
more
important if
have top production

even

the

be

and

City;

than the total amount of retained

Sales Up 18% for

16

stock

12/31/59,

Nationwide Department Store

April

the

words,

of

Vice-President, Union Dime Sav¬
ings Bank, New York City; Made¬

divi-

to

is

week's

The

following . percentages: dends actually paid accrued to
West South Central +20 to +24; unappropriated surplus. In other
South

t

Clements,

The

tele¬

given all these vital factors

lieve

L.

Vice-President

and

Members

available for the "A" dividend to

$4.61.

But

interest of

dent

be

A

is

a

there is still

without inflation and to stimulate

tional

charges

net

Helen

President

r e n

The

by,.1 the
North

Association.

Committee

the "A"

mandatory

pany's

B

which is being
the
American

Companies, Des
Moines, Iowa, has announced the
appointment of a committee to
supplement the work of the ABA

appropriations
f0r sinking funds and capital expenditures required by the cornare

tail trade in the week ended April
20 was 12 to 16% higher than the

vine.

have been the
strict

the

re-

able for the "B" stock. This would

were

combat

class

on

substantial

in
the
campaign
to
economic growth and to

the

dividend

$5

supply

inflation,
spearheaded
by

adequate

seem

full

firm.

a

that

efficient,
friendly, unruffled,
manner
can
build
good-will.
Everyone is important.

and who has

activity.

of

going

sociation

the

for

operator

lot

a

type

nessed

at

opportunities

effective

more

years.

Rhinehart,

would

good-will

phone

lose

can

specific

are

Create Business

leadership

creates

son

will

ed

come

of

job properly

level

Women

«a" stock at $2.40 a share amount-

support

do his

Sales

supervises at the top. The smaller

$15.5

$4,492,696. The difference
of $11,066,296
or
$272 per "B"
share was transferred to surplus,
At first glance, reported net in¬

business

cashiering department

all the other personnel that
to make up an efficient or¬
ganization. A cashier that doesn't

tact

assistance

to

the

process

the

It's Ideas That

firms that have established

of

taxes

The

who
as

so
that their
efforts
coordinated and directed.

The National Association of Bank

promote

company reported

after

investor.

Name Committee

complished is piling up m thenfavor for the day of reckoning,
income

the

Nat'l Bank Women

Power. In any event the
B'
shareholders can be content that
whatever progress is being ac-

In

of

rewards could be tremendous.

^e, other hand, they are
+d intimately with the ability of
'he company to increase its earn-

Organization?

office

the

go

and

patience and foresight

part

have

is

and

you

the

must

that

researchers, buyers, and

to

demand

You

salesmen,

first requirement. The firm itself
should have an able staff to back
them up;

ation which has and will continue

on

^<r.' 9n

dedicated

those

group

recognition that in order to pro.their interests, the "A" shareholders must make some proposai
° create one class of common

Sales

a

many

curities business.

such

and a good year in
should enable the com¬

are

ingredients that,
taken together, make
up an effec¬
tive sales organization in the se¬

economy

substantially more
in 1960 than during the steel strike
ridden 1959; however, the possi¬
bility of labor troubles makes any

any considerthe inevitable

What Makes
There

propriations
pany

excess of $4,000 a share I won-

other

BY JOHN DUTTON

is

seems certain. Alleghany Corpo- projections impossible at this time.
ration will not settle cheaply and
A
constructive
change in the
with a book value conservatively government's attitude towards the

independent of

CORNER

en¬

issue
should
be
retired
by
1965, assuming the company makes
no
more
open market purchases,
which
is
improbable. Once this

to be seen- As of yet> n° public
offers have been made. One thing

in

SECURITY SALESMAN'S

tire

blood

gains

ger

**-

corn-

stock and leave $152 a share avail-

moderately.

■

of

calendar basis the most significant
ume

:

class

one

win be able to work effectively
towards creating a settlement of
the capitalization problem is yet

net

<

create

stock. During the past year, Mississippi River Fuel has purchased
in excess of 300,000 shares of MOP
"A." This gives them a large voting position in the affairs of the

ation

.

on

United States exports of cotton in
the
week
ended
last
Tuesday

<

to

stock. Each year that the
"B's"
equity increases, the exchange terms that its large stockholders will accept is probably
also increasing. By not paying out
their earnings in dividends the
"A" holders are creating a more
desirable situation for the "B"
mon

the

of

notes

mortgages.
were

are

changed

-

of

unchanged

earlier.

Spot cotton prices

;

provisions of the
12/31/59 there

As

Although transactions in cocoa picked up at the
end of the week, prices finished

week

period.

;i

der

.■

der how cheap, cheap really is.
fect on MOP "B"; although, as I
These are the basic considera- indicated, I do not think this
tions underlying the "B" stock's blanket approach to the problem
attractiveness. On one sense, they is necessary. This is a special situ¬

a

K+

2

page

pany

railroad.

Rice prices were

fl

Continued from

is

engaging

business from

in

a

offices at

securities
77 Ferry

Street.

Life

Preferred

Investments

(Special to The Financial Chronicle)

SAN
ferred
been

FRANCISCO,
Life
formed

Montgomery
a

Calif. —Pre¬
Co. has
offices at 315

Investments

with

securities business.

Forrest A.

can

O.

that

A.

engage in
Officers are '

Street to

Lee,.President, Harold

Mundhenk, Vice-President, and
J. Lee, Secretary-Treasurer.

'
,

34

The Commercial and Financial Chronicle

(1858)

.

Thursday, April 28, 1960

.

.

ADDITIONS

* INDICATES

Now

Securities
•

Aero

(5/23-27)

Industries, Inc.

in

Registration

NEW

stock (par 25
cents). Price — $3.30 per share. Proceeds — For new
equipment, expansion of the business, and general cor¬
porate purposes. Office—Pottstown, Pa.
Underwriter—
Myron A. Lomasney & Co. of New York City.
March 11 filed 250,000 shares of common

ISSUE

April 29
Forest

Country Club

Sulzberger,

Whitmoyer

be sold at $100 per unit. Price—At par ($10 per
Proceeds—To acquire real property. Office—900

Avenue, Coronado, Calif.

$500,000

(Union

(Offering

Pacific RR

Debentures

,

Edward Tague Co.)

Securities

$1,000,000

Investment

Brown
&

&

Sons;

Co.,

Kidder,

All-State

$3,570,000

,

Inc.;

Fleming-W. B.
Lemon & Co. and ;

Nolan,

American Bowling

Johnston,
Co.)

&

;

*

.

General Shale Products

Co.

and

'

•

"''f'

& Sons, inc.)

$5,000,000

Paint

&

W.

,/y

Chemical

Brooks

rants

for

the

purchase

of

Brooks

W.

common

stock and

war¬

initial

an

installment

50,000

the

purchase price of two ad¬
bowling centers; for furniture and fixtures
thereon; and the balance to be added to working capi¬
on

(P.

Laurel,

Brooks

W.

&

Co.)

$750,000

■;

Murphy

&

(Alex

May 9

-

Mackay

and

&

"

Automation

-

Co.)

&

Co.,

Inc.

Construction

Trust

Co.

(Allen

&

200,000

*

.

Deltown

.—Notes

Durox

Securities

of

(Dean

Durox

C.

&

Co.)

and

be

available

Office—400

for

general

corporate

purposes.

38th

St., Union City, N. J. UnderwriterHill, Thompson & Co., Inc., New York.
•

* v

V

American

Howe Plastics

one

warrant with each share.

The class A

of

give the right to purchase the stock at $7.50 per
share for the first six
months, at $8.50 per share from
the seventh to the 24th
month, and at $9 per share from
the 25th to the 30th month.
Price—$7.50 per unit. Pro¬
the

(Lee

—

Rochester,

Underwriter—None.

stock.

Price—At par ($5 per share).

the balance

bank

on

new

com¬

Securities

page

Electronics
(H. M.

New

Co.)

&

Co.)

to

to

&

Pacemaker Boat
Securities

Co.,

Trailer

Co.

and

Inc.)

City

Witter

Premier

Co.

&

Industrial
(A.

&

by

Inc.)

Inc.)

Inc.)

Inc.)

B.

Bonbright

&

(Stroud

&

Inc.)

12

noon

(Peter

Morgan

&

(Peter

Morgan

Nevada
(Dean

35

& Co.)

(Shearson,

3,000,000-plus shareholders
market. That
stocks in

own

has

more

save

the

how many

s

mean

an

publicly held corporations. Chicago alone

shareholders than any other
city in the nation

New York. The

most

Chicago Tribune. It is

&

Straza

newspaper here is
best medium for adver¬

tising securities and services. Why
regularly in the Tribune in 1960?

not

plan

Sun Finance &

Teletray

Electronic
(Miller

Thermal

advertise

(Peter

Uris Buildings
Weldotron

#

(Eljintgo kTrihunc
TM«

WORLD'!

Mid America

s

most




C A I AT I I T

table pages

&

Co.)

Loeb

Co.)

Industries
(A.

T.

&

Co.,

Co.,

*

(A.

G.

Allyn

Inc.)

Becker

&

■

.

Inc.)

&

Curtis)

«

$$340,000

Common

Inc.

Inc.)

and

Netherlands

$600,000

&

Debentures

Co.)

$750,000

Corp

Planning

Common-

Inc.)

$300,000

Rhoades

&

Co.

and

461,431

Piper,

Jaffray

Sullivan

—-Common

&

Co.,

Inc.)

shares

50,000

Corp

A.

.Common

Lomasney

12

&

Co.)

&

$567,000

Bonds

EDST)

noon

Co.,

$12,000,000

Inc

Inc.

.-Common

and

Shlllihglaw,

Bolger

Forgan

&

Co.)

&

..Common

:

Co.)

150,000

shares

^Common

—

Street

&

Co.,

Capital

(B.

Superior

Inc.)

$300,000

Co..

R. Staats

&

Common

Co.) 3,000 shares

&

Co.)

$300,000

Co

Common

Higginson

Corp.)

150,00Q

shares

Telectro Industries Corp.(Milton

Teleregister
(Ladenburg,

Street

D.

Blauner

Teleregister
(Ladenburg,

300,000 shares

Debentures
Co.,

Inc.)

$1,000,000

Debentures

Thalmann

&

Co.,

Bros.)

Bear,

Stearns

&

Co.

and

$6,000,000

Corp.

.Common

Thalmann
Sutro

Common

&

Corp.
Sutro

$199,998

'

-Common

Fennekohl

Electric
(Lee

shares

shares

&

shares

Manufacturing Co

Common

$720,000

100,000

Jackson
;

•

...Common

(William

$20,000,000

Co., Inc.)

Co.,

Co.,

Brooks

W.

(Stroud

—Common

& Co.)

•.

Squan Marina, Inc.-

Corp
Brod

&

Service

(Glore,

Common

Wolverine Shoe & Tanning Corp....—
-

C.

Spring

Inc.—_

and

Securities

Listener

Renner, Inc.

$300,000

Inc

Inc.

Webber,

$1,738 000

..Common

Malkan

Paine,

Pyramid Mouldings,
(A.

Co.)

Common

(Bids

shares

400,000

Richter

Pennsylvania Electric Co

Common
&

Scherck,

-..-Common

and

Loeb,

(D.

Debentures

Loeb

and

shares

Inc

Winston

(Bosworth,

$450,000

Morgan & Co.)

Common
Inc.

Hopwood)

Otarion

Corp

&

Wells

Inc.)

Debentures
$2,000,000

Corp.

M.

Reliance

Corp.

(Arnold

N tWWAII L

widely circulated market

Co.,

$1,125,000

Towbin ^Co.)

Co.,

Bradford

Corp

(Kuhn,

(Carl

shares

C.

Common
shares

OK Rubber Welders, Inc

Debentures
Inc.)

Industries of Florida,

Uris Buildings

Marauette

shares

J.

150,000

450,000

Common

&

Co.

(P.

shares

Systems,

&

A.

Preferred

230,000

Associates,

&

Common

Loan Co

(Security

Sullivan

National Lawn

Capital

(Kuhn,

to

and

120,000

(J. A. Hogle & Co.)

widely read
your

Co.)

Co.

Pfd.

shares

Litecraft Industries, Ltd.___.L__

/Common

&

Co.)

&

Co.)

Securities,

Debentures

Industries

active securities

individuals in Mid America

Hammill

&

underwriting)

(Palombi

$300,000

100,000

Co.)

150,000

Co.)

Heutz

(Fund

Telephone Co

Witter &

&

Inc

Capital,

(J.

$6,720,000

30,000

Corp

shares

Keystone Electronics Co., Inc

French, Inc.) $300,000
Equip. Trust Ctfs.

Co.)

$295,000

150,000

$10,000,000

$300,000

Seaboard Plywood & Lumber Corp

Co.)

&

Co.)

Unterberg,

,

Plywood & Lumber Corp

$1,325,000

Integrand Corp.

Common
&

E.

$1,500,000

EDI')

Co.)

&

-

(McDonald

Debentures

Co.,

Co.)

&

International, Inc

shares

Co., Inc

Engineering
(Woodcock,
Moyer, Fricke

Seaboard

$300,000

$600,000

Co.)

Freres

Common

&

Hentz

Frost

Growth

-Common
D.

Lazard

Common

Noel

150,000

$2,500,000

Corp.

(George

M.

Class A

Treat & Co.,

(Amos

Common
and

Inc.

Enterprises, Inc

(C.

Gem

Common

212,500

shares

Realty & Construction Corp..-War.

(No

Debentures
Fay,

Common
400,000

FXR, Inc.

H.

Corp.—

Finance

Friendly

(Bosworth,

Securities,

&

$3,000,000

Common

Co.)

Hentz

(Bache

Common

Co.,

&

Co.,

(H.

Forest City

$450,000

Corp

Becker

G.

Radiant Lamp

Hooker

and

Co.)

&

Corp.—

(H.

by-

Co., Inc.-—

First

.•

CjDhon & Co.) $300,000

Alstyne,

Steel

First National

$3,830,000

Vegetable Oil Corp.—,

(Dean

Ritter

&

-

First National Realty & Construction Corp.—Com.

--Debentures

Byllesby

Pacific

Co.)

and M. H. Bishop

120,000 snares

(Westheimer

—Debentures

stockholders—underwritten

Common

Inc

200,000 shares

Co

(Offering

--Bonds

$650,000

Co.)

_*

&

(H.

Common

stockholders—underwritten

Allen

Ott Chemical

Shares

._—:

First National Realty & Construction

$1,000,000

Corp

Byllesby & Co., InC.)

(Offering

Inc

Galvan, Inc

(Van

Federal

$285,000

Jersey Natural Gas Co

(Jacey

Unterberg,

shares

150,000

Read

Ets-Hokin &

Common

Spartans Industries, Inc

STOCK TRADES ACTIVE HERE

(Dillon,

Debentures

(Dean Witter

Newark

—Common

Englehard Industries, Inc

--Common

Co.)

v

Inc..

(Bache

-Common

(Pleasant

Southern
on

E.

C.

Inc.——
&

115,000

Co.)

(Morris

shares

Nalley's, Inc.

Proceeds—To

loans, payment for additional equipment and fur-

and

'

.

shares

400,000 shares

Inc.—

Stone

(Bids

land, retirement of short-term

Continued

Co.

Seaboard Air Line RR.__

Foundation, Inc.

notification) 60,000 shares of

pay

&

Inc.)

Corp.

Shearson,

Companies, Inc.—Com.

75,000

.

Common

Films,

shares

Menu-Matics, Inc.

Schaevitz

mon

and

•.

Corp.

Electrada

Randolph & Co., Inc.) $300,000

(Hayden,

porate purposes. Office—917 15th St., N. W.,
Washington,
C.

Co.)

Properties,
(Andersen,

Raymond

American Convalescent
March 31 (letter of

Shields

Majestic Specialties,

American Capital Life Insurance Co.
April 15 filed 96,450 shares of class "A" common capital
stock. Price—$5.80 per share Proceeds—For
general cor¬
D.

Common

Co.

&

331,740

Chemical

&

Higginson Corp.;

Loveless

construction

of new bowling centers.
N. Y.
Underwriter — Myron A.
Lomasney & Co., New York City.
Office

Allen

Co.;

&. Co.)

Co.,

Minnesota,

Dynamic

shares

--Common

war¬

rants

ceeds—For

&

&

Minnesota,

Dworman

(Hilton Securities, Inc.) $180,000

Bowling Enterprises, Inc.

(5/5)
Feb. 25 filed 100,000 shares of common stock (par
$1),
and 100,000 class A purchase
warrants, to be offered in
units of

Sachs

Hammill

200,000

(Charles Plohn

Holt, Rinehart & Winston, Inc.——
(Goldman,

Inc.)

Inc

&

Common

90,000

$300,000

Co.,

-.serving J. Rice & Co., Inc.

Inc.)

.1-L

Witter

Co.)

&

&

Common
D.

\

,

Common,
•

(Irving J. Rice & Co., Inc. and M. H. Bishop

shares

Washington

Hawley Products Co.

-,

$300,000

-Common

Becker

G.

$1,000,000

v

t.

Miller &

Becker

G.

Foods,

of

$300,000

...

(Consolidated
■

$150,000

—•

Common

Common

Co.)

Inc.)

Fennekohl & Co.,

Crawford Corp.

..Common

Chemicals, Inc
•'

•

v.

$7,259,580

Co.*

Systems, Inc.--—--—:-—-Common

(Lloyd,

Co.)

(A.

Co

Lincoln)

of

&

Circuitronics, Inc.

134,739 shares

Estates, Inc.
.

&

_

(First

Noel

Pools, Inc..

(A.

Brothers

Dubois

Mackay

and

Dalto Corp.
Dobson

y•

.

"

shares

(No underwriting)

'

Inc.———————Common

Alstyne,

(B.

Cabana

Preferred
400,000

Common
Shares

28,250

Sons)

&

-

,,v>"

/

(Mandell & Kahn, Inc.)

Big Laurel, Inc.—
Murphy

Brown

Apple,

(Van

400,000 shares

(Pearson,

•/•••'

(Monday)

Alterman-Big
.

-Common

Inc.

Co.,

,

(Friday)'

Maryland Credit Finance Corp.«__

$750,000

Inc..,———

(Pearson,

ditional

tal

•/;

V

[Baltimore Paint & Chemical Corp.-^-Debentures

Towbin

additional

.

Corp.—-Common

j

Corp...—_—^.Bonds

Co.)

&

"/■

$1,800,000

Ionics, Inc.

shares,
The company proposes to offer these securities for pub¬
lic sale in units consisting of two shares of stock and
one warrant. Price—$6.25 per unit. Proceeds—To
cover
an

Inc.—^.Warrants

100,000 warrants;

(Equitable Securities Corp.) 220,605 shares

May 6

Corp.——Preferred
>1";/'•

Co.)

&

Baltimore Paint & Chemical
(P.

*/'"/

-Common

Ralph B. Leonard

'

■

April 15 filed 100,000 shares of

-

100,000 shares

Co.)

&

& Co.)

Lomasney

A.

Stearns

Common

Enterprises, Inc

Lomasney

A.

by Bear,
870,132 shares

Co.)

Bowling Enterprises,

(Myron

shares

100,000

(Myron

,

^American

■

—-Capital

Inc.-——-—
&

*

•

<

-

Allen

and

Co,

,

Inc.)

••''.v

;

stockholders—underwritten

to
&

- ■

Capital

Folger.

Peabody

(G. J. Mitchell Jr.

•

Corp.

&. Smith,

Fenner
shares

Pierce,

Properties,

(Offering

Co.--__-_-^Capital ;

underwriting)

Aviation Employees Corp

Park, L. I., N. Y.
Under¬
writers—Bear, Stearns & Co. and Allen & Co., both of
New York City.

Bowla-Bowla

Common

Lynch,

'

Office—Floral

American

$4,650,000

EDI)

p.m.

May 5 /(Thursday)

Co.) .$1,600,000

Life Insurance

stockholders—no

to

Hibbs

Big

Underwriter—Van Alstyne, Noel & Co., New York.

1

(J. W.), Inc

'

•

(Alex

Proceeds—To reduce current indebtedness and for future

•

Equip. Trust Ctfs.

-

(Bids

.

*

.

(Merrill

American Security Corp

Properties, Inc. (5/5)
March 17 filed 870,132 shares of capital stock, to be of¬
fered for subscription by holders of outstanding shares
of such stock. Price—To be supplied by amendment.

Ga.

and

Ohio Co.
shares

325,000

Chicago, Milwaukee, St. Paul &

$510,000

Co.)

&

American Frontier Life Insurance Co._^„.Capital

Underwriter—None.

Price—$18 per share. Proceeds—
To repay indebtedness, for working capital and other
corporate purposes. Office—933 Lee St., S. W., Atlanta,

The

Co.;
Co,)

(Wednesday)

May 4

Common,

Kirkland

(Monday)
(W.

share).
Ardella

tain other individuals.

&
&

Sanders

'

ASterman-Big Apple, Inc. (5/9-13)
March 18 filed,,,,403,310 shares of common stock
(par
$2.50), of wihch 60,000 shares are to be offered for public
sale on behalf of the issuing company. Of the remaining
343,310 shares (all outstanding), 168,310 are to be of¬
fered by Bankers Securities Corp. and
175,000 by cer¬

—Common

Agricultural Research Development, Inc.__Common

All-State

operations.

Weld

(White,

'/shares

58,337

Inc.)

Co.,

&

Corp.—.

317,500

8,250 shares of common
10 shares, each unit to

of

Pierce

Common

Inc.--

Manufacturing,

Tile

......Common

Inc.,:-

Jenks,

Common
shares

1,400,000

EDST)

p.m.

Financial

204,000 shares

Laboratories, Inc...

(P.

units

Co.)

3:45

(Rauscher,

Union

Mays
May 2

Baltimore

in

Co.)

(Hallowell, Sulzberger, Jenks, Kirkland & Co.) $500,000

^ Allnav, Inc.
offered

&

Laboratories,

(Hallowell,

porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas. Note -— This
offering has been postponed.

(letter of notification)

Weld

Fabricators, Inc.—

Whitmoyer

Monarch

$300,000

Co.)

Capital

American Penn

be

Edden

Common

$1,500,000

Hunt Co.)

B.

System, inc

(Bids

..Common
Earl

and

(James

Rowling Centers, Inc.
Dec. 29 filed $750,000 of sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For general cor¬

•

Bros,

(White,

Allied

to

(Tuesday)

Columbia Gas

Common

ISSUE

Telemail Service, Inc.-

American

$300,000

Microdot Inc.

• Alaska Empire Gold Mining Co.
:
—
April 12 (letter of notification) $300,000 of 6% income
notes to be offered in multiples of $100 each.
Price—At
face value.
Proceeds—For mining expenses.
Address—
Juneau, Alaska.
Underwriter — Stauffer Investment
Service, 1206 N. W. 46th Street, Oklahoma City, Okla.

stock

Ltd

Casting Corp

(Bertner

*

REVISED'

(Edgar

(Jerome Robbins & Co.)

Universal

ITEMS

(Friday)

Hills

General

PREVIOUS

May 3

CALENDAR

'

Agricultural Research Development, Inc. (5/2-6)
Jan. 25 filed 200,OOu shares of common stock (par 10
cents). Price—$5 per share. Proceeds—To purchase land,
to construct buildings, and provide necessary equipment
and capital to engage in a hog raising enterprise. Office
—Wiggins, Colo. Underwriter—W. Edward Tague Co.,
Pittsburgh, Pa.
Note—This statement is being revised.,

April 22

•

SINCE

&

Co.,

Bros.)

Bear,

240,000

Stearns

shares

'

&

v';

Co.

and

-•

-

.^United States Boat Corp.———————Common'
..

.

(Richard

Bruce

&,

Co.,

Inc.)

$700,000

..

.

■

-

.

Volume

Uranium

Number 5946

Reduction

(A.

Vector

1.91

C.

Allyn

Co.,

Common
Inc.)

200,000

Webber,

Jackson

&

(Michael

G.

Kletz

&

250,000

shares

Inc.)

&

Co.)

200,000

(Shearson,

Finance

and

Smilen

General American

Inc.)

Food

(Darius,

Lyon & Co.,

(Ross,

Inc.

and Globus,

;

Lyon & Co., Inc. and

(Ross,

Goelet

Globus,

Inc.)

70,000

Corp.
Co.,

&

Inc.

and

Globus,

Inc.)

Packaging Corp.______
(No

New Jersey

underwriting)

35,000

Co.

Corp.)

de

(P.

&

Telephone
(Bids

11:00

Inc.)

Co.,

Financial

Harburton

May 12

y'-;y

(Thursday)

California Electric Power Co.
(Bids

•

9

PST)

a.m.

'

/

.Bonds

V

(Simmons,

$12,000,000

Aero

May

Moore-McCormack
(Kuhn,

Loeb

and

Inc

Lehman

Chemical

Anken

(Monday)

May 16

•

American

Stereophonic
(D.

Victor

H.

Audion-Emenee
(Pistell,
•

•

Corp.i

&

Co.,

shares

Homes, Inc

Shell
(Beil

Homes,,

&

Hough,

Walker

&

Loeb

&■ Co.

McDonald &

(R.

Holman

A.

Industries,

Dymo

(William

410,206

Co.,

Inc.)

Co.,

Inc.)

J.

Lawrence

■

*"

(Hecker

.

: '

&

(Louis L. Rogers Co.

"

'

&

Pacific .Panel

$292,500

—Debentures

and Hilton Securities,

(The

$2,000,000 Y"

Inc.)

Hamilton

Management Corp.-——

•;(Kidder,

*

f

Precision

Peabody

&

320,000

Co.)

Common
shares

Hampshire Gardens Associates—.
C.

(B.

Morton

&

Co.,

Inc.)

y/'

$376,000

Securities

Corp.

and D.

(Purvis & Co. and Amos C.

.Kenrich

Sudler &

Petrochemicals,

*

Corp.)

(Peter

1

:

.

•

(F.

Smithers

S.

Magnin (Joseph)
(F.

S.

&

78,000

Medallion Pictures Corp.—
(Hancock

.

Missile

Electronics,

"*

•

(Pleasant

:Mister
YY:'>Y

Inc.——
Securities

Service, Inc

''

Pendleton

(Jacey

Tool

$300,000

Securities

.

(Bids

Co.)

■

"

(Bids

•

and McDonald

&

Co.)

June
Gulf

a.m.

Inc.)

Dynex, Inc.

168,833

be

&

Co.

American

Frontier Life

Insurance Co-

(5/2-6)

Price—$8

share. Proceeds — To increase capital and surplus.
Office^—1455 Union Ave., Memphis, Tenn. Underwriter—
per

Union Securities Investment Co., also of Memphis, which
will receive a selling commission of $1.20 per share.
•

American International Aluminum Corp.

shares

V

(5/23-27)
April 13 filed 400,000 shares of common stofck (par 25c).
Price
To be supplied by amendment. Proceeds —For
general corporate purposes and working capital. Office
—

—4851

N. W. 36th Ave., Miami, Fla. Underwriters—
Hardy & Co. and Filor, Bullard & Smyth, both of New

—

York.
#

American Penn Life Insurance Co.

(5/2-10)

March 30 filed registration of 127,500 shares of

y

capital
stock (par $10) to be offered for subscription by stock¬
holders of record on April 28, 1960 with rights to ex¬
pire 30 days from offering date. Subscription rate on




of

one

to

be

held.

(5/2-6)

100,000 shares of capital stock

is

an

the 100,000 shares of
number of shares of
capital stock of the Trust Company in units

each entity. It is proposed to offer
American Security stock and a like
the $10

par

Co

Bonds

Common

stockholders—underwritten
100,000

Paine,

by

shares

(Tuesday)
to

be

invited)

Bonds

—

$6,000,000

(Tuesday)

to be invited)

18

Debentures

-Bonds

l*
$25,000,000

Bonds

(Tuesday)
Electric Co.————Bonds
to

be

$16,000,000

invited)

(Thursday)
to

.Bonds

—

be 'nvltodi

§12000000

for

and the units are
subscription by stockholders of each *
one new share for each five shares

Price—To be supplied by

of the

Security will

indebtedness

current

use

Proceeds—

amendment.

its proceeds in part to repay
incident to the purchase

incurred

non-banking assets of The City Bank of Wash¬

ington, with the balance added to working capital, for

corporate

purposes.

Office—^734

15th

Street,

W., Washington, D. C. Underwriters—Alex Brown &
Sons, Baltimore, Md.; Folger, Nolan, Fleming-W. B.
Hibbs & Co., Inc. and Johnston Lemon & Co., Washing¬
ton, D. C.; and Kidder, Peabody & Co., New York.
N.

stock, of which

42nd

company

..Bonds

$50,000,000

share of stock of each issuer;
offered

American

Lawrence Seaway Land Co.

Security Corp.

$25,000,000

issuer at the rate of

each

(par $2).
affiliate of American Security &
Trust Co. by reason of the fact that each of their stock¬
holders owns the same number of outstanding shares of
The

to

(Bids

properties,

28 filed

...Bonds

invited)

Georgia Power Co

-Common

54,000 shares

filed 538,000 shares of common

American

$9,000,000

(Monday)

November 3

and acquire additional real estate.
St., New York City. Underwriter—
Gabriel Co., Inc., New York City.

March

be

Utilities

(Bids

350,000 shares are to be publicly offered. Frice—$3 per
share. Proceeds—To pay off mortgages, develop and im¬

A. J.

to

Louisville Gas &

general

Office—60 E.

Invited)

(Bids to be invited) $12,000,000

_

None.

prove

be

September 27 (Tuesday)
Indianapolis Power & Light Co.__;——

Bonds
$7,000,000

held, and all unsold shares of this block will
be offered under warrants granted in accordance with
the company's Agent's Stock Option Plan. Price—$28
per share. Proceeds — To increase capital and surplus.
Office—203 S. 15th St., Philadelphia, Pa.
Underwriter—

Jan. 27

Bonds
to

(Bids

shares

American & St.

$5,000,000

September 13 (Tuesday)
Virginia Electric & Power Co

and

offering will be on the basis of nine shares for

the
14

>

(Bids to be invited) $100,000,000

for each

nishings and for working capital. Office—3267 South¬
east Hawthorne Boulevard, Portland, Ore.
Underwriter
—Jerry A. Barfoot, Portland, Ore.

$12,000,000-

Southwestern Bell Telephone Co.—

$3,975,000

A. Lomasney & Co.)

Bonds

EDT)

(Bids to be invited) $17,000,000

October

invited)

a.m.

Preferred

(Bids

105,000 shares of the stock will be three additional shares
one share held.
Of the remaining 22,500 shares

Continued from page 34

Nov. 30 filed 200,000 shares of capital stock.

20

States

July 19

Equip. Trust Ctfs.

— __—___

(Myron

50,000 shares

to

11:30

New Jersey Power & Light Co

—Common

Securities

—

Debentures

$45,000,000

$900,000

——Common

time)

invited)

Webber, Jackson & Curtis)

shares

Y.

be

Laboratory For Electronics, Inc..

50,000 shares

,

N.

Telephone Co

to

(Tuesday)

|

Common

-.-Common'
K

Co.)

Bell

(Bids to be received)

(Thursday)

May 26

'

Industries, Inc.——-——Common

"(Kidder, Peabody & Co.

11:00

Missouri Pacific RR

——Common

$160,000

June 14

(Wednesday)

May 25

.

Common

._

—

&

$262,750

(Wednesday)

August 9

Union

Corp.)

Consolidated Edison Co. of New York

-Common

Kidder

Common

(Bids

$500,000

Association

Co.,

Bonds

$40,000,000

$250,000

Lomasney & Co.)

Dillon,

M.

A.

$643,500

Co.)

July 13

-Debentures

&

Com.

underwriting)

Northern Illinois Gas Co.—

Common

Corp.)

Bonds

shares

Securities

shares

Jersey Central Power & Light Co

shares

;__T——Debentures

Securities Corp.)

100,000

Corp.)

Co.)

$30,000,000

stockholders—no

(Bids

Common

Food Fair Stores, Inc.—
(Eastman

invited)

Gulf Power Co

shares

—Common

333,400

—.—Common

Co.)

210,045

Inc.)

(Offering to stockholders—.underwritten by The First
Boston Corp. and Blyth & Co., Inc.)

—Debentures

be

(Bids to be invited)

—Common
Smith,

&

&

shares

Co

$225,000 '

Co.)

(Tuesday)

May 24

$12,000,000

July 7 (Thursday)
Gulf Power

Class A

&

Arizona Public Service Co.__

Y

to

(Bids

(Myron A. Lomasney & Co.) $650,000

$1,250,000

Co.)

Co., Inc.

Smithers &

;

to

(Bids

shares

Co.—

Sloss

Inc.)

Washington Gas Light Co

Common

212,500

Tech Systems, Inc.—

^

....—.Common

Magnin (Joseph) Co., Inc.—
;

Trans

-Debentures
Co.,

(Tuesday)

Northwestern

$51,000

Inc.)

Inc

$520,000

Co.)

&

Morgan

June 7

1

;

Debentures

;

——Debentures

Industries, Inc.—

V

Y

shares

Corp

(Marron,

$1,500,000

$175,000

.

Lite-Vent

Co.)

$192,500

Kenrich Petrochemicals, Inc
;
.
'
j
•
(First Philadelphia Corp.)

:

Electric

shares

(Monday)

(Offering

Inc.—________ .Common

Philadelphia

(First

Co.,

Bruce

(Lee Higginson

;

Sierra

Common

I C Inc.

.

Y "

$1,250,000
360,000

(Thursday)

June 6

—Common

68,000

Inc.)

.___

Security Industrial Loan

Gleich Co.) $600,000

Inc.)

Common

Common

Higginson Corp.)

(Lee

'

Co.,

Chemtree Corp.

Security Industrial Loan Association--Debentures

—Units

&

Ripley & Co., Inc.)

(Havener

—

Boston

(Myron A.

:"

Hydra-Power Corp. ____________——Debentures(Aetna

$600,000

Inc

Fenner

Circuits,

$420,000

Inc

(Bids to be invited)

(Myron A. Lomasney & Co.) 37,500 shares

110,000 shares

Inc.)

$2,336,960

Southern Electric Generating Co

shares

Precision Circuits, Inc

Class A

'

(No underwriting)

June 2

-Debentures

Corp

First

Co.,

Corp.)

238,590

$350,000

Co.—

Piper Aircraft

&

Co.

Indemnity & Life Insurance Co

(Offering

(Frank Karasik & Co., Inc.) $450,000

'Great American Realty Corp.——
Y"

shares

Products, Inc.

Pierce,

(Merrill" Lynch,

Parks

&

Sloss

(Bias

Southwest

Common

Stearns & Co.)

Obear-Nester: Glass

Co.)

-

Corp._______Common

Co.)

American Realty Corp

Great

Cathers

shares

June 1
(Wednesday)
Michigan Wisconsin Pipe Line Co

shares

$330,000

Co.)

&

& Co.,

(Whitmore,

Common

1,692,466

Co.)

700,000

Pressprich

Miller & Van Winkle Co.-

Debentures

Sons and Brawley,
$6,000,000

&
•

Founders Mutual Depositor

(Bear,

&

(Offering to stockholders—underwritten by Schweickart

Common

80,000

Co.)

Holman &

(R. A.

shares

152,698

Holman

A.

Vitamin

...Common

Corp

Treat'&

Inc.)

Inc.)

Co.,

Magic Boats, Inc.-

Hudson

shares

Farrington Manufacturing Co.—
(Cyrus

Glass

$255,000

150,000

&

Magic Boats, Inc
(R.

Everett

.——Common

(Westheimer & Co.) $253,350

Glass

shares

i^Capital
Co.)

&

&

-—Common
shares

Broadcasting & Development Corp.-—Com.

Common
W.

R.

145,703

Co.,

&

Lomasney

A.

(Jaffee

Common

Inc.
Staats

R.

Electronic Assistance
(Amos

&

Co.)

Inc

Co.)

by

Builders, Inc.—

Common

and

Custom Craft Marine Co.,

400,000

._

General Aeromation,

Beryllium Co.

(Kuhn,

Florida

shares

Wallace Properties, Inc

Corp._Common

Products, Inc._

Holman

A.

Co.)

shares

1,000,000

Brush

H.

G.

&

Holman

A.

(Myron

$1,600,000

Co.)

Common

and

Riter

Figurette, Ltd.

Debentures

Inc

Inc.

Co.

(R.

(Beil & Hough, Inc. and G. H. Walker &

Bevis

&

(R.

—Common

200,000

300,000

(Harriman Ripley &

Corp..——.

stocknolders—underwritten

Deluxe Aluminum

Anthony &
shai'es

$825,000

Bullard & Smyth)

to

i

Common
Bertner Bros.)

and

Tucker,

750,000

Waltham Precision Instrument Co., Inc.--Common

& Film

and

Stearnr

(Marron,

$298,500

Deluxe Aluminum Products, Inc

$100,000

—

Inc.

Co.,

&

100,000

Bevis Shell

Common

Inc.)

Corp.

Schroeder

'

*

.

(Offering

(G.

Common

& Co. and Filor,

(Hardy

$10,000,000

Common

and

Properties, Inc.

(Harriman

Inc.)

660,000 shares

Swimming Pool Development Co., Inc.—Common

^

American International Aluminum

Bonds
Brothers)

Co.

Day)

Wallace Properties,

(Myron A. Lomasney & Co.)

Lines,

Co.

&

L.

(Laird

$544,810

Co.,

&

$1,000,000

———-Class A

:

Patrick County Canning Co., Inc.——Common

Corp.——________-Common

Rubin

Co.)

(Bache & Co.)

'

Industries, Inc

(Friday)

13

V..

(Monday)

May 23

&

—

>

..

Reeves

■

—Debentures

Fuller

Loeb &

Pacific Coast

.Common

(Thursday)

May 19

$20,000,000

DST)

a.m.

y

$22,000,000

Co.)

&

82,065

Co.)

(Burnham & Co.)

-

.

Warrants

&

Henderson's Portion Pak, Inc

1—Bonds

—

EDT)

a.m.

(Harrison

Debentures

___.

D.

Mattel, Inc.

(Wednesday)

18

$300,000

Co

11

Co

General Atronics Corp.—

Common
Rensis

(Kuhn,

yY

;

:

Light

(Bids

iMay

'

shares

;

(Bear,

Gas

$360,000

Corp.

Wisconsin

Milwaukee

110,000 shares

$800,000

87,809

•

—Class A

(Tuesday)

May 17

,

.

.—Common

./

-Common

Co.)

Fuller

D.

R.

.

.——Capital

Harvey Aluminum, Inc.—

——Capital

——

&

(Reynolds & Co.)

debentures

shares

120.000

(Stanley Heller & Co.)

shares

Aluminum Extrusion Co, Inc.—Capital

(Laird &

Vulcatron

Viewlex, Inc.

Warrants

Lyon

(Ross,

National

(Lehman Brothers)

;

;

i

$3,290,000

— ____

(S.

$6,000,000

United Financial Corp. of California

Co.)

Futterman Corp.

shares

110,000

$700,000

Common

Corp.

&

Fuller

D.

(S.

——Common

Debentures
Inc.)

Goelet Corp.

Corp.

Elco

—Common

;

(Lehman Brothers)

Elco

shares

200,000

shares

———,

(S.

100,000 shares

& Co.)

Inc.)

Elco Corp.

————Common
Co.)

&

420,945

(Tuesday)
(McDonnell

shares

United Financial Corp. of California

Equip. Trust Ctfs.
(Kuhn, Loeb & Co.) $30,000,000

May 31

Common

underwriting)

Continental Capital Corp.—

$300,000

Inc.)

Co.,

Components, Inc..,—■

Transportation Corp.

Debentures

4,500

—.

Witter

(No

.—Common

&

Stonehill

(Dean

United

Inc.)

Stores, Inc.—

Telecomputing Corp.

300,000 shares

Goelet Corp.

May 27 (Friday)

$225,000

Inc.)

35

North Central Co.————

shades

Corp

Murphy

(Federman,

.Common
Co.,

|twWlf ,

Isle, Inc.-——Preferred

Portfolios,

Instrument

Jeffrey-Robert

$287,500

Co

(White, Weld &

Plan

(Sire

Common

Corp.

t

.Common

Isle, Inc.—

Plan Portfolios,

(Sire

112,500

Co.)

&

Sire Plan of Normandy

(Pearson,

Corp.)

Dial

Hammill

Sire Plan of Normandy

shares

Chemical Packaging Co., Inc

Products, Inc.—

Class A

Service

Securities

W,^ nf,

—.Common

—

Common

May 10 (Tuesday)
(Mainland

1Mft,

(1859)

Precision

$1,650,000

Manufacturing Co
(Shields

Simmonds

Common

Curtis)

Co.,

j,

(Walter R. Blaha & Co., Inc.) $300,000

Yale Express System, Inc
Zero

I)

Rajac Self-Service, Inc

shares

Manufacturing Co., Inc

(Paine,

rj

The Commercial and Financial Chronicle

Co.__

&

itsW ,ufr* WHAM ***«*< I*wjshw^»I (ttuv^^w

-

American Stereophonic Corp. (5/16-20)
April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th St.,
New York, N. Y. Underwriter—D. H. Victor & Co., Inc.,
New York, N. Y.
•

American TeBemail Service,

Dec. 8 filed 375,000
per

share.

Inc.

(5/3)

shares of common stock.

Price-^.OQ

Proceeds—For establishing airmail facilities
Continued

on

page

36

36

The Commercial and Financial Chronicle

(1860)

Continued from page 35
at airports.

Office—518 Felt Bldg., Salt Lake City, Utah.
Underwriter—Edgar B. Hunt Co., New York City.
Anken Chemical & Film Corp.
(5/23)
April 7 filed 145,703 shares of common stock (par 20
cents), to be offered for subscription by holders of out¬
standing common stock at the rate of one new share for

capital. Office — Los Angeles, Calif. Underwriter
Quincy Cass Associates, Los Angeles, Calif.
•

Battery & Spark Plug Co.
March 29 filed 280,000 shares of common stock (no par),
of which 250,000 shares will be offered for
public sale
at $6 per share and 30,000 shares will be offered to
selected employees at $5.40 per share.
Proceeds — Be¬
tween $200,000 and $300,000 is expected to be expended

each six shares

by amend¬

before

toward the
the Sperry
short-term,

of

held. Price—To be supplied
Proceeds—$1,950,000 will be applied
purchase of certain properties and assets of
Hand Corp.; $140,000 will be used to retire
bank

loans; and the balance for general corporate pur¬
poses. Office—1 Hicks Ave., Newton, N. J. Underwriters
—R.
W.' Pressprich & Co. and Riter & Co., both of
New York.

Arizona

1961

the

for starting up

plant

new

Public

Service Co.

I

(5/24)

to

facturing facilities, such

•

Underwriters—The

First Boston

Corp. and Blyth

Co., Inc., both of New York.
Audion-Emenee Corp.

(5/16)

connection with

working capital. Office—New York City. Underwriters
—Pistell, Schroeder & Co., Inc., and Bertner Bros., both
of New York City.

beryllium; and the balance of the

Systems, Inc. (5/9-13)
(letter of notification) 150,000 shares of

com¬

stock

mon

-Underwriter—Dempsey-Tegeler &

Co., St. Louis and New York. Offering

amendment. Proceeds

—

For

March

30

filed

122,000 shares of class A voting stock.

by holders of outstanding class A voting and
non-voting stock, at the rate of one new share

shares
of the
company's three sub¬
general corporate purposes; and the re¬
maining balance will be used from time to time for
the purchase of all or a substantial interest in or the
the

of

one

or

other

more

insurance

or

companies engaged in

finance

or

to

further sup¬

plement the funds of the three subsidiaries. Office—930
Tower

Bldg., Washington, D. C. Underwriters—G. J. Mit¬
chell Jr. Co., Washington, D.
C.; and Ralph B. Leonard
& Sons, Inc., of New York
City.
it Baltimore
22

Telecomputing Services acquisition,

the balance will be

program."

applied to "other phases of the

Office—1200

lington, Va.

Jefferson

Underwriter—To

be

Davis

Highway, Ar¬

supplied

by

amend¬

ment.

Gas

filed

&

Electric

100,000

shares

Co.

of

common

stock,

to

be

Cabana

Pools, Inc.

be used to satisfy the demands in 1960 upon such
general funds, including particularly the 1960 construc¬
tion program of Columbia Gas subsidiaries. Underwriters

—To

(letter of notification) 150,000 shares of com¬
Price—$2 per share. Proceeds
general corporate purposes.
Office — 640 Fifth
Avenue, New York, N. Y.
Underwriter — Mandell &
Kahn, Inc., Time-Life Building, Rockefeller Center,
For

New

York, N. Y.

California

Electric

Power Co.

some

by competitive bidding.

Morgan Stanley & Co., Lehman Brothers, Eastman
Dillon, Union Securities & Co. and Goldman, Sachs &
New York Time.
Information—On April 28 and
by appointment at the company's office, 120 East
Street, New York. '
•
.-v/
> /;'"■■■•I
Commerce Oil Refining Corp.
Dec. 16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
p.m.

29,

42nd

Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shares
of stock and

$100 of debentures and nine shares of stock;
Proceeds — To

Price—To be supplied by amendment.

construct refinery. Underwriter—Lehman
York. Offering—Indefinite.
•

Brothers, New

Consolidated Realty Investment Corp.

March 11 filed 2,000,000

—$1

shares of common stock. Price
Proceeds—Of the proceeds, $1,226,500

share.

per

will

be

as

reserve

used

the acquisition of properties, $300,009
development expense, and the balance
for working capital and other corporate purposes. Office
a

for

for

—1321
The

Lincoln Ave., Little Rock, Ark.
Huntley Corp. Note—This statement

Underwriter—
was

withdrawn

April 15.

on

Constellation Life Insurance Co.
March 29 filed 1,350,000 shares of common stock, of which
350,000 shares will be reserved for stock options, 150,000
shares will be offered to holders of the outstanding
common

on

"first-come-first-served"

a

basis

$3.25

at

share, and 850,000 shares will be publicly offered.
Price—$3.50 per share.
Proceeds—To general funds.

per

—

Willis, Kenny &

—

• Continental
Capital Corp. (5/31-6/3)
April 19 filed 235,000 shares of capital stock (par $10).
Price—$14 per share. Proceeds—For investment in small

business concerns, and to the extent
necessary may use a
portion thereof to retire its outstanding subordinated

held by the Small
120

—

Street,

San

nell

Co., Inc., New York.

$9,500,000 and for the company's construc¬

tion program.

Probable

Co. (jointly). Bids—To be received on May 3 up to 3:45

debenture in the amount of $150,000
Business
Administration.
• Office

(5/12)

April 5 filed $12,000,000 of first mortgage bonds,
seri^
due May 1, 1990. Proceeds—To
discharge short-term bank
loans of

determined

be

bidders: Halsey, Stuart & Co., Inc.; Merrill
Lynch, Pierce,
Fenner & Smith Inc. and White, Weld & Co. (jointly);

Norfolk, Va. Underwriter
Ayres, Inc., Richmond, Va.

(5/9-13)

stock (par 10 cents).

mon

System, Inc. (5/3)
1,400,000 shares of common

will

Office
•

March 31

—

business of

April

B

the

for

formation

class

for each

be supplied by amendment.
Proceeds—To be used to the extent necessary to defray

and

Employees Corp. (5/2-6)
Feb. 8 filed 2,500,000 shares of common stock.
Price—$2
per share. Proceeds—Together with other funds, will be
in

Office—Cleve¬

C-E-l-R, Inc.

the full cost of the

Co., Inc., New York, N. Y.

Aviation

sidiaries;

expansion.

land, Ohio. Underwriters—Kuhn, Loeb & Co., New York
City, and McDonald & Co., Cleveland.

kohl

invested

Expected in

Beryllium Co. (5/16-20)
April 11 filed 410,206 shares of common stock, of which
260,000 shares are to be offered for the account of the
issuing company and 150,206 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof.
Price
To be supplied by

four shares held. Price—To

&

—

Brush

(par 25 cents). Price—$1 per share. Proceeds
—For general corporate purposes.
Office—150-34 12th
Avenue, Whitestone 57, N. Y. Underwriter—B. Fenne-

•

pro¬

ceeds will be added to the company's general funds. Of¬

The company proposes to offer this stock for
subscription

Automation
12

additional mechanization and

as

Thursday, April 28, 1960

.

Gas

filed

25

.

stock (par
$10). Proceeds—Together with other available funds, in¬
cluding funds generated from operations during 1960 and
funds to be obtained from additional financing in 1960;

—

March 29 filed 100,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds — For

Feb.

the

handling and for experimental work in

mid-May.

&

of

expended either by the company or through its
subsidiaries for the improvement of certain of its manu¬

for each 10 shares held of record

Ariz.

portion

be

fice—Reading, Pa.

May 24, 1960. PriceTo be supplied by amendment. Proceeds—For construc¬
tion purposes and payment of loans incurred for such
purposes.
Office — 501
South 3rd Avenue,
Phoenix,

costs, including initial rents

the. southeastern

United States which it hopes to obtain and open before
of the year; an additional $250,000 is expected

stock (par $5),
to be offered to holders of the company's currently out¬
standing common stock at the rate of one new share
common

in

the end

material control

April 22 filed 333,400 shares of

March

Bowers

ment.

Columbia

—

.

&

Francisco,

Calif.

Montgomery

Underwriter

McDon¬

—

Continental Electric Co.*

offered under the company's Employees Stock Purchase
Plan of 1960.
Office
Lexington

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

Feb.

Maryland.

Inc.; Kidder, Peabody & Co.; White, Weld & Co. Bids—
Expected to be received up to 9 a.m. (PST) on
Thursday,
May 12, in the offices of O'Melveny & Myers, Room
900,
433 South Spring
Street, Los Angeles 13, Calif.

retire outstanding bank
loans, for expansion and devel¬
opment of new products, and for working capital. Office
—715 Hamilton St.,
Geneva, 111. Underwriter—Old Col¬

Building, Baltimore,

—

•

•

Baltimore Paint & Chemical
Corp.
Jan. 22 filed (a) $750,000 of

6V2

series,

due

1975

with

(5/2)

sinking fund debentures,
eight-year warrants for the

purchase of 30,000 (par 50 cents) common shares (par
50 cents), at the rate of 40 shares for each
$1,000 of

•

Certified Credit & Thrift
Corp.
Jan., 26 filed 250,000 shares of class

debentures; and 20 shares for each $500 of debentures,

and

(b) 90,000 shares of 6V2% cumulative convertible first
preferred stock (par $20) and (c) 85,000 shares of com¬
mon stock
(par 50 cents). Price—For the debentures, at
par; for the preferred, $20 per share. Proceeds—For
gen¬

offered in units of

250,000

—$20.20

per

Utica

Feb.

29

Recording Corp. !
(letter of notification)

150,000 shares of com¬
(par 10 cents). Price—$2 per share. Proceeds
general corporate purposes.. Office—4 W. 31st34

stock

mon

—For

Street, New York 1, N. Y.
Co., Inc., New York, N. Y.

Underwriter—A. J. Gabriel^

March

Homes, Inc. (5/16)
filed $1,600,000 of 9% subordinated

30

sinking
1,000,000 shares of com¬
mon stock, to be offered for
public sale in units (200,000), at $15.50 per unit, each unit to consist of five com¬
mon
shares, one $8 par debenture, and warrants for the
purchase of two additional units of one common share
fund debentures

due

1985

and

and

one $8 debenture at
$9.50 per unit. Proceeds—$2,000,000 will be used to increase the
company's holdings
of mortgages placed on the shell
homes it sells; and $1,-600,000 to be used to increase its
holding of mortgages
will be placed in escrow
for that purpose; and the bal¬
ance
for general
corporate purposes.
Office—Tampa,
Fla. Underwriters—G. H. Walker
& Co., New York City

and

Beil

&

Hough, Inc.

of

St.

Petersburg, Fla.,

as

co-

managers.

• Big Bend Mining Co.
April 11 (letter of notification)
stock

Big Laurel, Inc.

(5/2-6)

March 22 filed 400,000 shares of
7% cumulative preferred
(par $2.80) and 400,000 shares of common
stock

stock

(par 10 cents), to be offered in units
ferred and

one

share of

common.

of

one

share of pre¬

Price—$3 per unit. Pro- *
Community and for working
capital.. Office—Bryson City, N. C. Underwriters—PearSQn, Murphy
Co., Inc., New York City, and Mackay &
Co., Reading Pa.
t
^/.
,
;
\
Birtcher Corp.
y*
March 29 filed $500,000 of 6 % convertible
subordinated
debentures, due April 30,1975. Price—At par. Proceeds
—To pay- bank loans incurred to
augment working
coeds—To develop

a

resort

^




(

($10 par)

par),

to

be

Proceeds—To pay mortgages.

Office
Secu¬

general

corporate

purposes.

Office

—

755

,

•

Chemtree

Corp. (6/6-10)
April 19 (letter of notification) 262,750 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
general corporate purposes.

Office—100 W.

Street, Wilmington 99, Del. f Underwriter—Havener
York, N. Y.

10th

Se¬

curities Corp., New

Circle-The-Sights,. Inc.
March 30 filed 165,000 shares of common stock
and $330,000 of debentures
(10-year 8% redeemable). Price—For
stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating
sight-seeing
service.

Office—Washington, D. C.

•

Underwriter—None.

Circuitronics, Inc.

Feb.

(5/9)
(letter of notification)

9

common

stock

Proceeds—For

(par

one

75,000 shares of class A
cent).
Price—$4' per share.

general

corporate purposes. Office—121
Varick -Street, New
York, N. Y. Underwriter—Lloyd,
Miller & Co., 2605 Connecticut
Avenue, N. W., Wash¬
ington, D. C.
•

300,000 shares of com¬
(par 25 cents). Price—$1 per share. Proceeds.
-^For mining expenses.
Office—1518 W. Shore Drive,
Loveland, Colo. Underwriter—None.
mon

stock

(20c

Avenue, Brooklyn, N. Y. Underwriters—Mainland
Securities Corp., 156 N. Franklin
Street, Hempstead, N.
Y. and Jeffrey-Robert
Corp., 382 S. Oyster Bay Road,
Hicksville, L. I., N. Y.
/ ;
;

—For

Bevis Shell

A

stock

Corp., Columbus. Offering—Imminent.
Chemical Packaging; Co., Inc.
(5/10)*
March 16 (letter of
notification) 115,000 shares of com¬
mon stock
(par 10 cents). Price—$2.50 per share. Pro¬

ceeds—For

Beltone

B

share of each class of stock. Price

one

unit.

class

rities

Brooks

Co., New York City.

of

—Columbus, Ohio. Underwriter—Commonwealth

eral corporate purposes
including repayment of loan,
purchase of landj construction, purchase of machinery
and equipment, and for
working capital. Office—2325
Annapolis Ave., Baltimore, Md. Underwriter — P. W.
&

shares

Coca-Cola Bottling Co. of New
York, Inc.
April 19 filed 298,204 outstanding shares of its common
stock.
Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Underwriter—Eastman Dil-*
Ion, Union Securities & Co., New York. Listing—The
company intends to apply for
—Expected sometime in May.
•

Cold

NYSE

listing.

Offering

t

Lake

Pipe Line Co., Ltd.
200,000 shares of common stock. Price—At
the market, at time of
offering. Proceeds—For general
corporate purposes. Office—1410 Stanley St.,
Montreal,
Feb.

5

filed

Canada.

Underwriter—Michael Fieldman, New York.
Colorado Caterers, Inc^
April 8 (letter of. notification) 150,000 shares of common
stock (no par). Price —
$2 per share. Proceeds — For

working capital. Office—7626 Old Georgetown Road,
Bethesda, Md. Underwriter—E. A. Burka, Inc., Wash¬
ington, D. C.

11

filed 260,000 shares of common stock
(par $1).
be supplied by amendment.
Proceeds—To

Price—To

ony Investment Co., Stoneham, Mass.
it Continental Fund Distributors, Inc.

April 25 filed $1,000,000 of Plans for the Accumulation
of Shares of Continental
For

investment.

Growth

Office—366

City.

.

Fund, Inc.

Fifth

Proceeds—

Avenue,

New

-/'.. v..

.•

York

•'/;•:''

/-•

• Cooperative Trading, Inci Y'
April 13 (letter of notification) 5,000 shares of common
stock.
Price
At par ($10 per share).
Proceeds
For
—

—

working

capital.

Office—665

McAlister

kegan, 111.
i

Underwriter—None/
;
j ;
Cosmopolitan Insurance Co.*---;
-

..

•

Avenue, Wau•
:.
.
.
.

,

'■

-

March 30

(letter of notification); 58,000.shares of capital
stock (Par $1).
Price—$5-per share. Proceeds — For
general corporate purpose/Office—4620 N. Sheridan

Road, Chicago, 111.& Co., Chicago/Ill.
•

Cosnat Record

Feb.

29

Underwriter—Link, Gorman, Peck
'
;C^-vVf;V<
Distributing Corp.

>

(letter of notification) 75,000 shares of class A
stock (par 10 cents). Price—$4
per share. Pro¬

common

ceeds—For

general

corporate purposes.

Officer 15

W.~

47th

Street, New York, N. Y. Underwriter—Mortimer
B. Burnside & Co.,
Inc., New York, N. Y. Offering—
Expected in early May.

i

•

Crawford Corp. (5/9-13)
March 28 filed 200,000 shares of
of which
for

100,000 shares

account

of

issuing

are

common

stock

to be offered for

company

and

(par $1),
public sale

the balance, being
Price

outstanding stock, by the present holders thereof.
—To be

supplied by amendment.

Proceeds—To be initi¬
ally added to working capital and used for general cor¬
porate purposes, including but not limited to the reduc¬
tion of short-term bank loans
Dec. 31, 1959,

($5,921,872 outstanding at
including $5,199,800 of bank loans made
directly to an unconsolidated subsidiary).
It is con¬
templated that the additional funds will be used to ac¬
quire land for development or resale to
dealers, con¬
struction loans to

builder-dealers, expansion of the com¬
pany's market area, and the possible manufacture and
erection, in cooperation with builders, of "shell" house
packages for completion by the home owner on a "do-ityourself" basis.1 Office—7111 ^Florida

Boulevard, Baton
Rouge, La. Underwriter—A. G. Becker & Co., Inc., of
Chicago and New York. •
•
.*
.

• Custom

Craft Marine Co;,

Inc. "(5/16)
March 28 (letter of
notification) 85,000 shares of" com¬
mon stock (par 25
cents).* Price—$3 per share. Proceeds
—For general corporate
purposes.* Office^*l 700 Niagara
Street. Buffalo, N. Y. Underwriter-^-R. A. Holman & Co.,
Inc., New York, N..Y.
'V,/ " '/
.

.

Dalto

March

offered

Corp.

(5/2)
29 filed 134,739 shares of
for

subscription, by

common

holders

of

stock, to be

such

stock

of

,

Volume

record

Number

191

5946

.

.

.

The Commerciol and Financial Chronicle

at the rate of one new share for each
held with rights to expire on June 3.
Price-—To be supplied by amendment. Proceeds—For the
two

May

2

then

shares

•

warrants
company

—Norwood, N. J. Underwriter—None.

shares.

Dart

Drug Corp.

thereof.-

Price—$5 per share. Proceeds—For repayment
corporate indebtedness and for working capital. Office
—5458 Third St., N. E., Washington, D. C. Underwriter—
of

Hodgdon & Co., Washington, D. C.
Defense

Electronics, Inc.
1
(letter of notification) 200,000 shares of com¬
(par one cent). Price—$1.50 per share. Pro¬
ceeds—For machinery ;and electronic
test equipment,
working, capital and a reserve fund. Address—Rockville, Md. Underwriter—Balogh & Co., Inc., Washing¬
ton, D. C.,
;■
mon

•

12

stock

Deltown

Foods, Inc. (5/9-13)
v
'
*
.
March 22 filed 115,000 shares of outstanding common
stock (par $1). Price—To be supplied by amendment.
Proceeds
To selling stockholders.
Office—Yonkers,
—

the holders of the

common

stock and

a

creditor of

Manufacturing

Corp.
The 5,000 warrants
issued to stockholders and certain creditors of

mega

and to expand
Office—123 Eileen

Products, Inc.

(5/23)

100%

of principal amount; for

the stock, $5 per share.
Proceeds—From 10,000 shares of the common stock, to
the present holders thereof; from the rest of the offer¬
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.
Underwriter— R. A. Holman &

Co., Inc.

•

Development Credit Corp. of Maryland
March 29 filed 2,000,000 shares of common stock.

—$1.10

share.

per

Proceeds

Office—22

purposes.

—

Light St.,

Price

For general corporate
Baltimore, Md. Under¬

writer—None.
•

Dial

Finance Co.

(5/10)

of common stock (no par),
including 150,000 shares which are outstanding and will
be offered for public sale by the holders thereof, and
the remaining 150,000 will be offered for the company's
account. Price—To be
supplied by amendment. Pro¬
will

be used

—207

company's general funds and

initially to reduce short term debt. Office
Moines, Iowa, Underwriter—White,

Ninth St., Des

Weld &

Co., Inc., New York.

ri?

V

Diversified Communities,

Inc.

Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬

quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Corp., New York.
Offer¬
ing—Postponed.
•
' /

Underwriter—Lee Higginson

•

Dobson

Brothers Construction

March 30 (letter

automobile

Co.

breakdown

insurance

policies

(5/2)

of notification) $300,000 of subordinated

equipment notes to be offered in denominations of $1,000
Price—At par. Proceeds—For construction equip¬

each.

ment; to retire equipment obligations, and for working
capital. Office—502 First National Bank Bldg., Lincoln,
Neb.
Underwriter—First Trust Co. of Lincoln, Lincoln,

R.

Boland

&

property.

company

Pro¬

and operating oil
S. State Street, Dover,

of

the

warrants.

Location—"M"

Street below Erie

(5/2-6)
(par $1)

publicly offered and 125,000 shares issuable under
company's Restricted Stock Option Incentive Plan for
key employees. Price—To be supplied by amendment.
Proceeds—To reduce a bank loan in the amount of $2,681,000.

Office—634 Broadway, Cincinnati, O.
& Co., New York.

Under¬

and

Ohio.

/V."\

.

—For

general corporate purposes.
Office—139-14 Ja¬
Avenue, Jamaica, N. Y. Underwriter—J. B. Coburn Associates, Inc., New York, N. Y.
maica

Fidelity Acceptance Corp.
(letter of notification) 12,000 shares of class H

March 24

6%

cumulative preferred stock. Price—At par (25) per
share). Proceeds—For working capital. Office—820 Plym¬
outh Bldg., Minneapolis,
Minn.
Underwriter—Ray F,
Kersten, 3332 E. Orange Dr., Phoenix, Ariz.

(par 10

50,000 shares, now outstanding, by Robert Edwards, com¬
pany president.
Price—To be. supplied by amendment.
Proceeds—$20,000 will be used to further equip its en¬
gineering department and office, $60,000 for research and

March

and 20 shares of common stock or one unit of 50 bonds at

development, and $20,000 for advertising and promotion.
balance of the proceeds of approximately $594,750
will be added to working capital. Office—20 Bridge
Ave.,
Red Bank, N. J. Underwriter—Amos Treat & Co., Inc;.

New York.

Bldg., St. Paul, Minn. Underwriters—Irving J. Rice &
Co., Inc., St. Paul, Minn, and M. H. Bishop & Co., Min¬
neapolis, Minn.
Dworman

(5/9-13)
of common stock. Price—
$10 per share.
Proceeds—For general corporate pur¬
poses.
Office—400 Park Avenue, New York City. Un¬
derwriter—Charles Plohn & Co., New York City.
Jan.

15

filed

Corp.

300,000 shares

Dymo Industries, Inc. (5/16-20)
April 11 filed 150,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds—Ap¬

proximately $200,000 of the proceeds from the sale of the
stock will be used for the purchase and installation of

machinery and equipment in a new plant which the com¬
pany is presently negotiating to lease; $400,000 will be
used for the acquisition of tools, dies, jigs and fixtures;
$100,000 for leasehold improvements; and the balance for
working capital. Office—2546 Tenth St., Berkeley, Calif.
Underwriter
William R. Staats & Co., Los Angeles,
—

California.

Dynamic Films, Inc. (5/9-13)
(letter of notification) 100,000 shares of com¬
stock (par 10 cents). Price—$3 per share. Proceeds
—For general
corporate purposes.
Office;— 405 Park
Avenue, New York, N. Y. Underwriter—Morris Cohon
March 29

mon

&

Co., New York, N. Y.




•

Ltd. (5/23-27)
100,000 shares of class A common stock,
(par 50 cents) Price—$6 per share. Proceeds—For gen¬
eral corporate purposes. Office—514 N. E. 79th
Street,
Miami, Fla. Underwriter—Myron A. Lomasney & Co.,

remaining

The

Englehard

Industries, Inc.

•

" "'* .M '

(5/9-13)

Mar. 30 filed 400,000 shares common stock (par $1). Price
—To be supplied by amendment. Proceeds—$2,000,000
to

reduce

outstanding

amount of term notes, and the
outstanding short-term indebtedness
and increase working capital.
Office—Newark, N. J.
Underwriters
Dillon, Read & Co. Inc., and Lazard
Freres & Co., both of New York City.

balance

to

reduce

—

•

Esquire Radio & Electronics, Inc.March 30 filed 150,000 shares of common stock (par 10c).
Price—$5 per share. Proceeds—$73,000 will be used to
replace funds used by company for payment of subordi¬
nated notes; $50,000 to repay short-term bank obliga¬
tions; and the balance of approximately $477,000 will be
added to working capital and used for general corporate
purposes, including financing of finished and raw mate¬
rial inventory. Office—39 Broadway, New York. Under¬
writer—Myron A. Lomasney & Co. Offering—Expected
sometime in June.
•

-

(5/2-6)
Dec. 24 filed 200,000 shares of class A common stock.
Price—$5 per share. Proceeds—For purchase of various
properties,-for development and subdivision thereof, and
to meet operating expenses, salaries and other costs, but
principally for the purchase and development of large
tracts of land.
Office—3636-16th Street, N. W., Wash¬
Estates,

Inc.

test

• Federated Electronics, Inc.
April 25 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds

to be offered for public

***•**.» 4

convertible

supplied by amend¬
applied to the pay¬

Steel Corp.
(5/9-13)
(letter of notification) 59,000 shares of com¬
mon stock
(no par). Price—$5 per share. Proceeds—For
an expansion program.
Office—3327 Elkton Ave., Dayton
3, Ohio.
Underwriter—Westheimer & Co., Cincinnati,

Minnesota, Inc. (5/9) v
April 11 filed $650,000 of 7% first mortgage bonds and
120,000 shares of common stock (par $1). The offering
will be made in units of one bond ($100 principal amount)

New York.

(5/16-20)

subordinated

-Federal

•

.

of

March 30

sale for the account of the company and the

principal amount plus accrued interest. Price—To be
supplied by amendment. Proceeds—For additional plant
and equipment and to provide working capital to com¬
mence and maintain production.
Office — 414 Pioneer

$6,000,000

1970. Price—To be

as

writer—Allen
Durox of

Manufacturing Co.

equipment for producting scanners and
working capital; and (b) $1,300,000 for re¬
search and development. Office—77 A
St., Needham,
Mass. Underwriters—Cyrus J. Lawrence &
Sons, New
York City; and Brawley, Cathers &
Co., Toronto, On¬
tario, Canada.
** *

Co., New York.

are

filed

of

chase

New York.

Electronic Assistance Corp. (5/16-20)
March 17 filed 122,500 shares of common stock

cents), of which 72,500 shares

25

$250,000

Electrada

&

Office—Denver, Colo.

Proceeds—$2,000,000 to be
bank loans; $2,800,000 to
the. scanner program
in 1960, including
(a) $1,000,000 for expenditures by
Farrington
Electronics,
Inc.,
a
newly-formed ^date
processing subsidiary, for inventory, 250,000 to pur¬

ment

Price—

Underwriter—Bache

Chemicals, Inc.

Farrington

ment.

Avenue,'Philadelphia,

Underwriter—S. D. Fuller & Co.,

1963, with $1,107,000 to be contributed to

loaned to subsidiaries.

debentures due

100% of principal amount plus accrued interest from
May 15, 1960. Proceeds—For retirement of the company's
indebtedness to The First Pennsylvania Banking & Trust
Co., and for the purchase of machinery and equipment.

the

Dubois

•

City and Newark, N. J.

exercise

31,

or

^ Farmers Mutual Telephone Co. of Clarinda, Iowa
April 19 (letter of notification) 2,000 shares of common
stock (par $20).
Price—$30 per share. Proceeds—For
operation of a telephone company. Office—106-108 W.
Chestnut Street,
Clarinda, Iowa. Underwriter—None. t

and

the

per

Underwriter—None.

• EEco Corp. (5/31-6/3)
April 22 filed $1,000,000 of 6% convertible subordinated
debentures due May 15, 1975, 82,065 common stock
pur¬
chase warrants, and 87,809 shares of common stock re¬

Pa.

Dec.

surplus

com¬

to be

Neb.

fore

March

against

Price—$9

debentures, series
D, maturing from 1969 to 1980. Price—To be offered
in units of $100. Proceeds—To
pay notes maturing be¬

15,000 shares, representing out¬
standing stock, are to be offered for the account, of the
present holders thereof. Price—$3.50 per share.
Pro¬
ceeds—For general corporate purposes including sal¬
aries, sales promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New
Orleans, La. Underwriter—Sandkuhl & Company, Inc.,

served

held.

Cooperative

Engineering Corp.
April 8 filed 85,000 shares of common stock of which
70,000 shares are to be offered for the account of the

New York

shares
at

Union of America
March 29 filed $2,500,000 of
registered

Edwards

company

5

derwriter—J. H. Hilsman & Co.,
Inc., Atlanta, Ga.
Farmers' Educational &

Underwriter—None.

issuing

each

$10.25 per share. Proceeds
capital and surplus and expand the busi¬
Office—1515 Spring St., N.
W., Atlanta, Ga. Un¬

ness.

developing

Office—129

for

—To increase

Express, Inc.
April 1 (letter of notification) 77,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—To
repay notes payable, reduce equipment purchase obliga¬
tions, accounts payable and for working capital. Office
—109 M Street,
Anniston, Ala. Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.

for

116,800 shares of common stock,' to be
subscription by stockholders at the rate of

share

share; unsubscribed shares

East Alabama

expense

for

new

on

Co., Inc., New York.

it Eastern States Oil Co.
■
April 14 (letter of notification) 200,000 shares of
mon
stock (par one cent).
Price—$1 per share.

filed

30

offered
one

Corp. (5/9-13)
March
29
filed
400,000 shares of common stock.
Price—To be
supplied by amendment. Proceeds—For
acquisitions, debt reduction, and other corporate pur¬
poses. Office—9744 Wilshire Blvd., Beverly Hills, Calif.

March 30 filed 200,000 shares of common stock

Family Fund Life Insurance Co.
March

insurance for the purchase price of
cents, and for a public relations and publicity pro¬
gram.
Office—Hotel Troy Building, Troy, New York.

Del.

requirements,

supplement working capital and for other general
corporate purposes. Office—26-12 Borough
Place, Woodside, N. Y. Underwriter—C. E. Unterberg, Towbin Co. ;

25

ceeds— For

March 25 filed 300,000 shares

ceeds—To be added to the

acquire new facilities, to maintain
necessary inven¬
tory to meet current and anticipated sales
to

E. H. P. Corp. .■ ■;;■
v
Aug. 31 filed 160,000 shares of capital stock (par 10c),
of which 100,000 shares are to be
publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to

Underwriter—John

Proceeds—$950,000 will be used to repay short$375,000 is to be invested in MicroCorp.; the balance of the proceeds will be used

to

Underwriter—Myron A. Lomasney

of such breakdown

Oct. 15 filed $330,000 of convertible debentures, and 70,000 shares of common stock. Price—For the debentures,

(5/9-13)

filed

term notes and up to

concerns,

company's business.

Way, Syosset, N. Y.
& Co., New York.

30

Underwriter

$2,000,000 of convertible subordinated
debentures, due 1970. Price—To be supplied by amend¬

duction of contracts

thruways, parkways and highways hi the amount of $25

Co., Inc., New York
//"V >•-'

FXR, Inc.
March
ment.

the scope of the

(5/9)

Francisco, Calif.
Alstyne, Noel & Co., New York.

—Van

Matronics,

cerns, to finance the starting of inventories and adver¬
tising incident to new products, to purchase additional
equipment and inventory for the manufacture and pro¬

other

Inc.

will be used to reduce notes
payable to the Bank
of America National Trust &
Savings Association. Office
—551
Mission St., San

Price—To be supplied by amendment. Proceeds—
To finance the activities of the two newly-acquired con¬

for

Galvan,

of

ance

being

are

&

Securities

common stock
(par $1).
Price—$5.30 per share. Proceeds—To be added to com¬
pany's working capital and will be used
principally to
reduce some $1,000,000 of its accounts
payable. The bal¬

Inc.

distribute

Deluxe Aluminum

Ets-Hokin

37

March 28 filed 250,000 shares of

Optics

City.
•

D. C. Underwriter—Consolidated
Washington, D. C.

by, the holders of capital stock and certain creditors of
Matronics, Inc., after July 22, 1960 at the then prevail¬
ing market price; and 4,000 shares for the account of

N. Y. Underwriter—A. G. Becker &
;

ington,

Of the additional 24,00,0 shares, 20,000 are
being
issued in escrow for the account of, and may be resold

Ma^ch 30 filed 200,000 shares of class A common stock,
of which 170,000 shares are to be offered for public sale
on behalf of the issuing company and 30,000 shares, be¬
ing outstanding stock, on behalf of the present holders

April

(5/26)
54,000 common shares (25 cents par) and
for an additional 5,000 shares of this stock. The
proposes to make a public offering of 30,000

Dynex, Inc.

March 15 filed

retirement of notes and additional working capital Office

•

(1861)

•

Figurette,
3

filed

First

National Realty & Construction Corp.
(5/9-13)
\
■
-.u
April 25 rfiled 150,000 shares of cumulative preferred
stock first series, $8 par, 150,000 shares of common stock,
and 150,000 shares of common stock (par 10 cents).
It
is proposed that these securities will be offered in units,
each unit consisting of one share of preferred and one
,

-

...

-

share of common. Price—To be supplied by amendment.
Proceeds—$257,000 will be used to repay loans made by
an

officer and director of the company and a corpora¬
controlled by him to provide funds for apartment

tion

house

construction; about $500,000 will be used for the
a portion of bank notes; and the balance
will be added to working capital for use in the acquisi¬
tion of new properties and for the company's construc¬
tion program. Office — 630 Third Avenue, New York.
repayment of

Underwriter—H. Hentz

&

Co., New York.

Flick-Reedy Corp.
March 14 filed $691,800 of registered subordinated de¬
bentures, 6%, due February, 1972, and 69,180 shares of
common
stock.
The company proposes to offer these
securities in units, each consisting of a $100 debenture
and 10 common shares. Price—$115 per unit.
Proceeds
—For reduction of accounts payable and corporate in¬
debtedness. Office—Bensenville, 111. Underwriter—None.
•

Florida

Builders, Inc. (5/23-27)
80,000 shares common stock (par $1). Price
supplied by amendment.
Proceeds—Between

Mar. 30 filed

—To

be

Continued

on

page

38

38

The Commercial and Financial Chronicle

(1862)

General Atronics

Continued from page 37

March

$200,000 and $250,000 will be used to establish or acquire
a
Federal Housing Administration approved mortgage
financing and service company; $200,000 will be used to
off bank loans; and the balance for working capital.
Office—700 43rd St. South, St. Petersburg, Fla. Under¬
writer—Jaffee & Co., New York.
pay

Home

Florida

March 30 filed
fered

Insurance

17,500 shares of

holders

to

shares

common

shares held.

Co.

of

at

the

the

of

stock to be of¬
85,995 outstanding

common

share

each

five

Unsubscribed shares will be offered to

em¬

one

for

ployees and officers of the company who are stockhold¬
ers jwithout further offering of such unsubscribed shares
to other stockholders of the company. Price—To be sup¬
plied by amendment. Proceeds—To be added to the com¬
pany's general funds to be held in cash or invested in
securities.

Office

—

1335

Biscayne

Blvd.,

Miami,

Fla.

Underwriter—None.
Food Fair Stores, Inc.
(5/24)
April 14 filed 168,833 shares of common stock. Price—
To be supplied by amendment. Proceeds —- To selling
stockholders. Office—2223 Allegheny Ave.,
Philadelphia,
Pa. Underwriters—Eastman Dillon, Union Securities &
Co. and A. M. Kidder & Co., both of New York.
Forest

City Enterprises, Inc. (5/9-13)
Mar. 29 filed 450,000 shares common stock
(par $1). Price
—To be supplied by amendment. Proceeds—For repay¬
ment

bank

of

loans

and

for

working capital. Office—
17903 St. Clair Ave.,
Cleveland, O. Underwriter—Bache

&

Co., New York.

•

Forest Hills

Jan.

29

Country Club, Ltd.

(par 100).
per share. Proceeds—To build a country club
Hills, L. I., N. Y. Office—179—45 Brinckerhoff
Ave., Jamaica 33, L. I., N. Y. Underwriter—Jerome
Robbins & Co., 82 Wall St., New York
City.
Price—$4

Founders Mutual

Depositor Corp. (5/16-20)
(letter of notification) 60,000 shares of com¬
mon
stock, class A (no par). Price—$4.87V2 per share.
Proceeds—To go to selling stockholders.
Office—2401
First National Bank
Bldg., Denver, Colo. Underwriter
March 25

—Hecker &

poned.

developmental engineering and sales promotion of ma¬
handling equipment, $80,000 for investment in
Atronic Learnings Systems, Inc., $93,000 for repayment

March 30

terials
of

bank

loans, and $157,859 for working capital. Office
Bala-Cynwyd, Pa. Underwriter — Harrison & Co.,
Philadelphia, Pa.

Co., Philadelphia, Pa.

jf Franklin Corp.
April

26

$1).

ment.

filed

1,000,000 shares of common stock (par
Price—$10 per share. Proceeds—For invest¬

Office

—

9 2 5

Hempstead

Turnpike,

Franklin
Square, New York. Underwriter—Blair & Co. Incorpo¬
rated, New York. Offering—Expected in early June.
•
Friendly Frost Inc. (5/9-13)
April 5 filed 150,000 shares common stock (par 10c). An
additional 96,500 shares included in the
registration state¬
ment are reserved for the
company's Employees' Stock

Option Plan.

Price—$7.50 per share. Proceeds—For re¬
payment of bank loans, for company's
expansion pro¬
and the balance for working capital.

gram,

Frost

Street, Westbury, L. I., N. Y.

Office—123
Underwriter—None.

Futterman Corp. (5/31-6/3)
April 1 filed 660,000 shares of class A stock. Price—To
be supplied by amendment.
Proceeds—For acquisition
of properties. Office—580 Fifth
Avenue, New York. Un¬

derwriter—Reynolds & Co., New York.
ic Gamble Brothers
April 14 (letter of notification) 12,500 shares of com¬
mon stock
(par $5) of which 11,246 shares are to be of¬
fered for subscription to
stockholders of record as of
April 26,1960 on the basis of one new share for each
share
held.
Price—To stockholders,
$18.50 per share; to the
public, $22.50^ per share. Proceeds—For an
expansion

program.^ Office—4601 Allmond Avenue, Louisville, Ky.
Underwriters—Stein Bros. &
Boyce, and Bankers Bond
Co., Inc., Louisville, Ky.
Gem

International, Inc.

Mar. 29 filed 150,000 shares

.

Thursday, April 28, 1960

Street, Dallas 19, Texas. Underwriter—Glore, Forgan &
Co., New York City. Note—This offering has been post¬

—$3.50 per share. Proceeds—$60,000 for additional lab¬
oratory and production equipment, $80,000 for additional

•

General

Casting Corp. (4/29)
(letter of notification) 100,000 shares of com¬
stock (par 10 cents). Price—$3 per share. Proceeds
—For general corporate purposes.' Office—1000 N. Di¬
March 25
mon

vision

Street, Peekskill, N. Y. Underwriters—Bertner
and Earl Edden Co., New York, N. Y.
;:

Bros,

General

Development Corp.
March 2 filed $12,555,600 of 6% convertible subordinated
debentures, due May 1, 1975, being offered for subscrip¬
tion by holders of the outstanding common in the ratio
of $100 principal amount of debentures for each 50
shares of conmmon held of record April 19 with rights to
expire on May 4 at 3:30 p.m. EDST. Price—100% of prin¬
cipal amount. Proceeds—For general corporate purposes.
Office—2828 S. W. 22nd Street, Miami, Fla. Underwriter
—Goldman, Sachs & Co., New York City, will head a
group which will purchase any unsubscribed debentures.
General
March
stock

Shale

filed

29

(no

(5/9-13)

common

Products Corp.

220,605

shares

of

(5/5-10)
outstanding

par). Price—To be supplied by

common

amendment.

Proceeds—To selling stockholders. Office—Johnson City,
Tenn. Underwriter—Equitable Securities Corp., Nash¬

/

Gross Furnace

Manufacturing Co., Inc.
(letter of notification) 120,000 shares of com¬
(par 10 cents).
Price — $2.50 per share.
Proceeds — For advertising, equipment and working
capital. Office—c/o Joseph J. Gross, 2411 Sunn^brook
stock

mon

notification) 10,000 shares of pre¬
par ($25 per share).
Proceeds*
—To purchase land.
Office—15th floor Hoge Building,
Seattle, Wash. Underwriter—None.
ferred

•

stock.

Price—At

Glass

Magic Boats, Inc. (5/23)
(letter of notification) $51,000 of six-year 61/2%

Dec. 30

convertible
of

$51

Road, Richmond, Va. Underwriter—Maryland Securities
Co., Inc., Baltimore, Md.
"
>
• Growth
Capital, Inc. (5/9-13)
April 14 filed 500,000 shares of common stock (par $1).
Price—$20 per share. Proceeds—To provide investment

capital and management services. Office—Bulkley Bldg.,
Cleveland, Ohio. Underwriters—McDonald & Co., Cleve¬

land, Ohio and Paine, Webber, Jackson & Curtis, N. Y.
•

Gulf-Tex Development, Inc.

March 30 filed 250,000

shares of common stock. Price—
$5 per share. Proceeds—For purchase of Pelican Island;
for improvements on said property; and for working
capital and other general corporate purposes, including

the general development of the property. Office—714
Rosenberg St., Galveston, Tex. Underwriter—Myron A.
Lomasney & Co., New York. Offering—Expected some¬

time in June.

debentures

each.

to

Debentures

offered

be

in

convertible

are

common

Hamilton

non-voting

shares

of

common

stock.

Price—Of

debentures, at par; of stock, $102 per unit. Proceeds—
pay off current accounts payable; purchase of raw
and
for
expansion.
Office — 2730
Ludelle

To

materials

Street, Fort Worth, Texas. Underwriter—R. A. Holman
Co., Inc., New York, N. Y. Note—The name has been
changed from Glass Magic, Inc.
;
.
&

( -

^ Glass Marine Industries, Inc.
/"
April 25 filed 200,000 shares of class A stock and 100,000
common

stock.

The class A stock

is to be of¬

fered at $2.25 per share and the common at 75 cents per

share;

the class A

and

and

common

shares

are

to

offered in units consisting of two class A and one

be

com¬

Price—$5.25

mon.

per unit.
Proceeds—To develop the
production facilities to produce the company's

necessary

boats.

Office—Humboldt, Iowa. Underwriters—Leason
Co., Inc., Chicago, 111.; William B. Robinson & Co.,
Corsicana, Texas; and Bala William & Co., Wichita
Falls, Texas.
&

Goelet Corp.
March

1

filed

(5/10)
$700,000 of 8% subordinated Installment

debentures, due in March, 1970, 70,000 shares of
mon

com¬

stock

(10 cents par) and 35,000 common stock pur¬
chase warrants (exercisable at $4.30 per share until
May
15, 1965), to be offered in units consisting of $100 of

debentures, 10 common shares, and five warrants. Price
—$143 per unit. Proceeds—To be applied toward the
company's general business activities.

Office—292 Madi¬

son

Avenue, New York. Underwriters—Ross,
Co., Inc, and Globus, Inc., both of New York.
Gold Medal Packing Corp.

Lyon

(par

10 cents). Price

stock,

—

Harburton

Financial Corp.
(5/19)
(letter of notification) 298,500 shares of class

March 21

common

stock—non voting

share.

Office—56

Proceeds—For

(par

cent).

Price—$1

corporate

purposes.

one

general

Beaver

Street, New York 4, N. Y.
Under¬
writer—Simmons, Rubin & Co., Inc., New York, N. Y.
•
Harvey Aluminum (Inc.)
(5/31-6/3)
April 21 filed 750,000 shares of class A common stock.

Price—To<>be supplied by amendment.
Proceeds—For
expansion and working capital. Office—Torrance, Calif.

Underwriters—Kuhn, Loeb & Co. and Tucker, Anthony
& R.

L.

Day, both of New York City.

•

Hawtey Products Co. (5/2)
Mar. 29 filed 90,000 outstanding shares of common stock
(par $5). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office—333-39 North Sixth
St.,
St.

Charles, 111. Underwriter—Dean Witter & Co., Chi-,

cago and New York.
•

Henderson's

Portion Pak, Inc.
(5/31-6/3)
200,000 shares of outstanding common
stock (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—4015
Laguna
Street, Coral Gables, Fla. Underwriter—Burnham & Co.,

April

18

,

filed

New York.
•
Holt, Rinehart & Winston Inc. (5/2-6)
;
March 29 filed 331,740
outstanding shares of its common
stock (par $1). Price—To be

supplied by amendment.
selling stockholders.
Office—New York
Underwriters — Goldman, Sachs & Co., Allen &

Proceeds—To

City.

Co. and
•

Shearson, Hammill & Co., all of New York.

Howe

&

Plastics & Chemical Companies,

Inc.

v

(5/2)
Dec.

—

(5/16-20)

Peabody & Co., New York.

per

68

Management Corp.

To be supplied by
amendment. Proceeds—To selling stockholders.
Office—
777 Grant Street, Denver, Colo.
Underwriter—Kidder,

stock

shares of

Avenue, New York. Underwriter—B. C.
Company, Inc., New York.

March 21 filed 320,000 shares of class A common

A

and

■;

fice—375 Park

stock at

$1.50 per share. Also, 68,000 shares of common
(par 10 cents) to be offered in units of one $51

r

Hampshire Gardens Associates (5/16)
April 1 filed $376,000 of Limited Partnership Interests,
to be offered in units. Price—$500 per unit. Proceeds—
For purchase of the fee title to a garden type apartment
community (Hampshire Gardens) consisting of 14 build¬
ings with a total of 134 apartments in Chillum, Md. Of¬

denominations

into

v.

....

•

Morton &

^ Giant Land Co.
April 15 (letter of

debenture

value

Price

ville, Tenn.

(4/29)

filed 75,000 shares of common stock

in Forest

•

Corp. (5/18-22)
155,660 shares of common stock.

filed

.

—

company's

rate

18

.

14

(letter

of

notification) 60,000 shares of com¬
Price—$3 per share. Proceeds

stock (par one cent).

mon
-

—For

stock (par $1). Price

June 18 filed 572,500 shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the

corporate purposes. Office—125 E. ,50th
Street, New York, N. Y.. Underwriter—Hilton Securi¬
ties, Inc., 580 Fifth Avenue, New York, N. Y.

open, fur¬
and equip the second
store in St.
Louis, similarly
being built by others; $128,600 to
purchase the assets of
Embee, Inc., and Garrol, Inc., who now hold the

company; 110,000 by certain stockholders; 12,300 for the
underwriter; and the remaining 50,000 shares are pur¬

April

15

chasable upon exercise of the warrants. Price—$1.25
per
shore. Proceeds—For repayment of debt; purchase of

stock

(par

equipment

Ave.,

To

be

supplied by amendment.
Proceeds—$125,000 to
open, furnish and equip the new Wichita
store being
built for the
company by others; $75,000 to

nish

lease

basic

the premises used

on

by the Kansas City operating

and

facilities

Honden, Ltd.; Honla

Change—Formerly

Ltd., and Dacat, Ltd., which

hold the basic leases

Indefinitely delayed.

on

the

store

building;

$105,000

for

advance

to

Gem

Stores, Inc., and Gem

of St. Louis,
Inc., to enable those
corporations to repay loans; and the
balance for general

JOI7??5a*e
PurPoses and
facilities and
to

Empire

as needed to expand existing
new
locations.
Office—418
Denver, Colo.
Underwriters
Bos-

establish

Building,

—

worth, Sullivan & Co.,
Inc., Denver, Colo.; and Scherck,
Richter Co., St.
Louis, Mo.

6e"®r®1 Aeromsition,
March 3
,,

stock

Inc.

(5/23-27)

(letter of notification) 84,450 shares of

(no par). Price—$3 per share.

struction

of
n

additional
*est

6011

cen*er

common

Proceeds—For

con¬

vehicles, a demonstration and
working capital.
Office

and

—

Montgomery Road, Cincinnati, Ohio.
—Westheimer & Co.,
Cincinnati, Ohio.

Underwriter

be supplied
by amendment. Proceeds—To be used
toward reimburs¬

es! ivf Qo5mpiiny's
treasury *or the
after

cost (not less than
adjustment for depreciation) of the
jo be subjected to the Agreement under which the

$33,833,334
cars

certificates

Street,

are

to be issued.

Office—135 South LaSalle

Chicago, 111. Underwriter—Kuhn, Loeb

New York.




&

Co.,

general

purposes.

Eastern

Packing

Corp.

Offering—

Gorton's

of Gloucester, Inc.
(letter of notification) 10,100 shares of com¬
mon
stock
(no par). Price—At-the-market, estimated
at $24^2 per share. Proceeds—To
go to selling stock¬

March 22

holders. Office—327 Main St.,

Gloucester, Mass. Under¬
writer—Kidder, Peabody & Co., Inc., Boston, Mass.

Great American Realty Corp.
(5/16-20)
April 8 filed $2,000,000 of 7% convertible debentures
due July 1, 1975, together with 110,000 shares of out¬
standing class A stock. Price—For debentures, at 100%
of principal amount. Proceeds—For additional
working
capital. Office—15 William St., New York. Underwriter
—For

debentures, Louis L. Rogers Co., 15 William St.,
City and Hilton Securities, Inc., 580 5th Ave.,

New York

New York

General American
Transportation Corp. (5/10)
April 14 filed $30,000,000 of
Equipment Trust Certifi¬
cates, due May 1, 1980 (series
58). Price—To

other

corporate
Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name

company and who sublease the premises to
that company:
$208,000 for advance to the Honolulu
subsidiary to en¬
able it to purchase the
assets of
now

and

Great

City.

Southwest

Corp.
filed $11,500,000 of cumulative income deben¬
tures, due Jan. 1, 1975, and 575,000 shares of common

Dec.

10

stock

(par $1). Via a prospectus dated March 16, the
entire offering has been reduced to
514,293 shares of
common stock, of which
457,150 shares will be publicly
offered

and

57,143

issuer's

6%

debentures.

amendment.

building

of

shares

Proceeds
a

—

recreation

will

Price
For

park.

be
—

exchanged for the
To be
supplied by

debt

reduction

Office—3417

and

the

Gillespie

•

general

Hudson

Vitamin

filed

$1).

Proceeds—To

Products, Inc. (5/23-27)
outstanding shares of common

212,500

Price—To

be

supplied

by

amendment.

selling

stockholders. Office—89 Seventh
New York. Underwriter
Bear, Stearns & Co.,
—

New York.
•

Hydra-Power Corp. (5/16-20)
21 filed $600,000 of 6V2
% subordinated deben¬
tures, due 1970, with warrants to purchase 150 com¬
March

shares for each $1,00,0 debenture. Price—100% of
principal amount. Proceeds—$175,000 will be applied to
the purchase of capital
equipment, raw material and to

mon

finance

work-in-process

Power-tronics
research and

finished

and

Systems,

Inc.,
development of a

a

products
for
subsidiary engaged in
line of products such

new

as
voltage regulators and regulated power companies;
$225,000 to be used for similar purposes with respect

to the operations of

engaged
and

emergency

tion

of

ance

a

for

Electro-Powerpacs, Inc.,

a

subsidiary

in the design and production of photographic

lighting equipment; $100,000 for reduc¬
portion of a $200,000 bank loan; and the bal¬
general

corporate

Court, New Rochelle, N. Y.

purposes.

Office—10

Underwriters-—Aetna

Pine
Se¬

curities Corp. and D. Gleich
Co., both of New York.
I C Inc.
(5/16-20)
June

29 filed

600,000 shares of

common

stock

(par $1).

Price—$2.50

per share. Proceeds—To further the corpo¬
rate purposes and in the
preparation of the concentrate
and

enfranchising of bottlers, the local and national pro¬
and advertising
of its beverages, and where
loans to such bottlers, etc. Oflice—
Bldg., Denver, Colo. Underwriters— Pur¬

motion

necessary to make
704 Equitable
vis

& Co. and Amos

Colo.

C. Sudler &

Co., both of Denver.

■

''I**

Volume

191

Number

5946

The

Industrial Rayon Corp.

•

ceeds—For

and

to

purchase

additional

Office—575 Colman Bldg.,

Seattle, Wash.

y,r,/

'

'

Underwriter—

Meyers

7>-

Integrand Corp. (5/9)
13 filed 85,000 shares of Common stock (par five
cents). Price—$4 per share. Proceeds—To establish and
equip a plant for the manufacture of the company's
"hi fi" systems in or near San Francisco; for develop¬
ment of allied devices; and for working capital. Office—
622 Main St., Westbury, N. Y. Underwriter—Palombi
Securities Co., Inc., New York.
Note—This issue was
originally registered with DiRoma, Alexik & Co., Spring¬
field, Mass., as the underwriter.
/ /; ••,
- ;

the

of

company

in

connection

with

LoveEess
Jan. 20

(5/2-6)
March 29 filed 75,000 shares of

per

common

Specialties, Inc. (5/2-3)
150,00(1 .outstanding shares of, common
stock, (no par) to be offered for the account of the pres¬
ent holders thereof.
Price—To be supplied by amend¬
ment.
Proceeds—To selling stockholders.
Office—2530
Superior Avenue, Cleveland, Ohio. Underwriter—Hayden, Stone & Co., New York.

Proceeds—$5,800,000 will.bQ applied jtq, the payment of a like amount of outstanding notes and the
balance to
1960 construction
expenditures (or reim-

company's treasury thereof). Under¬
determined by competitive biddings
Eastman

Dillon, Union

York Time)

on

mon

Hill, Thompson & Co., Inc., New York.
Offering—Expected late in May.

(5/16)

•

of 7% convertible

Price—For

stock.

debentures,

amount; and $3.50 per class A share.
;

II i

land, construction of a new plant, and
equiment for the enlarge¬
ment of the company's welding electrode manufacturing
capacity; an additional $100,000 will be used to retire
installation of machinery and

payable to officers; and the balance will be added
to working capital and approximately $1,000,000 may
be used to reduce temporarily present bank borrowings.
Office—307 East Hennepin Avenue, Minneapolis, Minn.
Underwriters—Carl M. Loeb, Rhoades & Co., New York;
notes

Securities, Inc.* both of New York.

and

■

it Laboratory tor Electronics, Inc. (6/20-24)
April 20 filed a maximum of 100,000 shares of common
stock, to be initially offered to its stockholders. Price
—To be supplied by amendment.
Proceeds—For additional working capital and expansion, and the balance

•

?

more,
•

"

ital.

Underwriter—None.

Crowell, Weedon & Co., Los
Offering—Expected mid to late May.
—

fund

29

common

an



'

i

filed

Inc.

(5/4)

317,500

shares

of outstanding

common

(par $1).

Smith

Inc., New York City.

(letter of notification) 285,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For additional production equipment, inventory, and
for publicity, research, marketing, and additional work¬
ing capital. Office—176 Oak St., Newton, Mass. Under¬
writer—Pleasant Securities Co., 117 Liberty St., New
York, N. Y.
March 28

(letter of notification) 85,700 shares of com¬
(par 10 cents). Price—$3.50 per share. Pro¬
ceeds—For
general corporate purposes.
Office—8608-

Inc.

April 15 filed 130,000 shares of capital stock, of which
100,000 shares will be offered for public sale by the is¬
suing company and 30,000 shares, being .outstanding, by
the holders thereof. Price-—To be supplied by amend¬
ment. Proceeds—To reduce outstanding indebtedness, to

undetermined num¬

stock

mon

130th

Street, Richmond Hill 18, N. Y. UnderwritersStreet Corp.; Bruno-Lenchner Inc., Pitts¬
burgh, Pa.; Russell & Saxe; V. S. Wickett & Co., Inc.
and Street & Co., New York, N. Y.

First

Broad

Miami

reduce

Tile

& Terrazzo,

Inc.

March 11 filed 125,000 shares of common stock

(par $1).
Price—$4 per share. Proceeds—$150,000 as reduction of
temporary bank loans, $140,000 in reduction of accounts

payable, $65,000 to repay notes and loans payable to
Barney B. and Nathan S. Lee, and the balance for gen¬
corporate

Office—6454

purposes.

Miami, Fla. Underwriter
Corp., Miami. Fla.

—

N.

4th

E.

Plymouth Bond

&

Ave.,
Share

^Michigan Wisconsin Pipe Line Co.

(6/1)
$30,000,000 of first mortgage pipe line
bonds, series due 1980. Proceeds—For construction pro¬
gram.
Office—500 Griswold Street, Detroit, Mich. Un¬
derwriter— To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. Bids—Expected to be received up to 11 a.m.
(EDST) on June 1, Suite 1730, 165 Broadway, New
filed

20

Information

York.

May

(EDST),
York
•

31,

Meeting—Scheduled

5th floor,

20

11:30

for

Exchange

Place,

a.m.

New

City.

Microdot Inc.

March

(4/29)

filed

11

204,000 shares of capital stock (no par)
of which 60,000 shares will be offered for public sale
by the issuing company, and 144,00,0 shares are presently
outstanding and wilFbe offered for sale by the holder
thereof.

Price—To

be

supplied

Pro¬
working capital
purposes in the amount of $406,000; to pay in full prom¬
issory notes held by Trustees under the will of M. H.
by

amendment.

ceeds—To retire bank loans incurred for

Lewis

in the amount of $78,732, and (together with a
portion of the proceeds from a bank loan) for the pur¬

chase of

machinery and equipment costing $200,000, for
property additions and improvements, and for working
capital. Office — 220 Pasadena Ave., South Pasadena,
Calif.

Underwriter—White, Weld & Co., Inc., Los An¬

geles and New York.
it Midwestern Gas Transmission Co.
April 22 filed $60,000,000 of first mortgage pipe line
bonds, series due June 1, 1980, with attached warrants
for the purchase of 240,000 shares of common
stock
(par $5).

The bonds will be offered in denominations
with attached warrants for the purchase of
four shares of common stock at $15 per share on and
after Jan. 1, 1964 through Dec. 31, 1973.
Price—To beT
supplied by amendment.
Proceeds — To finance con¬
of

$1,000

struction of two natural gas pipe line systems.

Office—
Houston, Texas.
Underwriters —
Stone & Webster Securities Corp.; White, Weld & Co.,
and Halsey, Stuart & Co. Inc., all of New York.
Offer¬

Tennessee

Building,

ing—Expected in late May.
Midwestern

Indemnity Co.
(letter of notification) 15,832 shares of com¬
stock (par $5) to be offered for subscription by

March 25
mon

stockholders of record at the close of business

4, 1960 in the ratio of

one

held.

on

Offering expires

on

March

share for each three

shares

May 5, 1960. Price—$17 per
share.
Proceeds—For working capital. Address—Cin¬
cinnati, Ohio. Underwriter—W. D. Gradison & Co., Cin¬
cinnati, Ohio.
/
:
Miller

& Van Winkle Co.

(5/23-27)

April 7

(letter of notification) 75,000 shares of class A
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office—155 Sherman Ave.f
Paterson, N. J. Underwriter—Whitmore, Bruce & Co.,
New York, N. Y.
Milwaukee

Gas

Light Co. (5/17)
$22,000,000 of first mortgage bonds, series
Proceeds—Together with $4,000,008 to be re¬

accounts

payable,

and

due

1985.

ceived

from

the

sale

of

additional

common

stock

to

American Natural Gas Co.

(parent) and treasury funds,
will be used to pay off $11,115,000 of bank borrowings
for construction purposes and to provide
additional
funds for current construction expenditures or reim¬
burse the company's treasury therefor. Office — 626
East Wisconsin Ave., Milwaukee, Wis. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co., Inc.; Kidder, Peabody & Co.;
Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly). Bids
—Tentatively to be received on May 17 at 10:30 a.m.

(EDST) at the offices of the American Natural Gas Co.,
New York City. Information
Meeting—Scheduled for May 16 at 11:00 a.m. (EDST)
18th floor, 70 Broadway, New York City.
Suite 1730, 165 Broadway,

McCormick Selph Associates,

Angeles,

shares, to be offered in units. Price—$500

be

—

;

ber of

Office—

Price—To be supplied by amendment.
Proceeds
To selling stockholder.
Office — Brooklyn,
N. Y.
Underwriter — Merrill Lynch, Pierce, Fenner &

Industries, Ltd. (5/9-13)
filed $750,000 of 6Y4% subordinated sinking

debentures, due 1980,- and

29

17

March 25 filed

(J. W.),

Mays

Litecraft

March

indebtedness.

Underwriter—Alex Brown & Sons, Balti¬

Md.

March

the

Underwriter

reduction of short-term

Md.

outstanding, by the holders thereof. Price—To

stock

Office—6920 Sunset Boulevard, Los Angeles, Calif.

Calif.

are

supplied by amendment. Proceeds—For additional work¬
ing capital. Office—5150 Rosecrans Avenue, Hawthorne,
Calif. Underwriter—Bache & Co., New York.

company's general corporate funds, sub¬
stantially to meet increased demands on working capto

shares

Mattel, Inc.

now

Liberty Records, Inc.
April 1 filed 150,000 shares of common stock (par 50c).
Price—Approximately $8.00 per share. Proceeds—To be
added

3,250

(5/31-6/3)
April 18 filed 300,000 shares of common stock, (par $1),
of which 50,000 shares are to be offered for public sale
for the account of the issuing company and 250,000 shares

—

•

are

Easton,

it LaureE Planning & Redevelopment Corp.
April 12 (letter of notification) 300,000 shares of com¬
mon stock, class A.
Price—At par ($1 per share). Proceeds
For working capital.
Office — 912 Montrose

Avenue, Laurel, Md.

shares

and the

(Dorothy), Inc.
March 30 (letter of notification) 100,000 shares of class
A common stock
(par 10 cents). Price—$3 per share.
Proceeds—For general corporate purposes. Office—65 E.
55th Street, New York 22, N. Y.
Underwriter—Invest¬
ment Securities Co. of Maryland, Baltimore, Md.

•

29

being offered for the
present holders thereof.
Price—To be
supplied by amendment. Proceeds—For working capital

Lamour

•

Credit Finance Corp. (5/6)
28,250 common shares, of which 25,000
being sold for the account of the issuing

filed

March

company, and
account of the

wealth
•

Piper, Jaffray & Hopwood, Minneapolis, Minn.

Maryland

if any, to reduce bank loans. : Office—1079 CommonAvenue, Boston, Mass.
Underwriter — Paine,
Webber, Jackson & Curtis, Boston and New York.

f
*1
a

—

the acquisition of

tory; for research and development; and the balance for
working capital. Office—65 Seventh Ave., Newark, N. J.
Underwriters—J. A. Winston & Co., Inc. and Netherlands

'

remaining 70,000 shares
a new stock option

For public offering, to be supplied by
Proceeds—$400,000 will be expended for

Price

amendment.

standing stock, by the holders thereof. Price — $3 per
share. Proceeds—For additional equipment and inven¬

"

The

to be reserved for issuance under

plan.

Keystone Electronics Co., Inc. (5/9-13)
i Feb. 12 filed 200,000 shares of common stock.
Of this
stock, 133,334 shares are to be offered for public sale
for the account of the company and 66,666, being out¬

thereof.

holders

of

count
are

Underwriter—First Philadelphia Corp.,

•

;

(5/9-13)

stock, of which
The shares
to be offered for public sale include 275,031 shares to
be offered for the account of the company and 116,400
which are outstanding and will be offered for the ac¬

New York.

I

Marquette Corp.

March 28 filed 461,431 shares of common

of

Corp., New York, N. Y.

(5/2)

—

391,431 shares will be offered for public sale.

principal
Proceeds—$10,000

100%

will be applied towards the repayment of demand notes,
$115,000 for new plant facilities and equipment; and the
balance for general corporate purposes. Office—120 Wall
St., New York.

Equipment Corp.
(letter of notification) 117,000 shares of com¬
stock. Price—$2.50 per share. Proceeds—For gen¬
corporate purposes. Office—South Kearny, N. J.

mon

subordinated
debentures due 1970, and 55,000 shares of class A com-

,

Pool

21

Underwriter

Kenrich Petrochemicals, Inc.

;

Major

eral

May 24.,

March 29 filed $175,000

.

filed

25

March

Co.

'

1
I

•

Securities &
(managing the books), Salomon Bros. & Hutzler
and Merrill Lynch, Pierce, Fenner & Smith (jointly).
Bids—Expected to be received up to 11:00 a.m. (New
bidders:

filed

Majestic

March

1990.

Probable

Magnin
25

Inc.

stock

mon

April

•

.

March

Ave., North Hollywood, Calif. Underwriter—Taylor and
Company, Beverly Hills, Calif.
(Joseph) Co., Inc. (5/16-20)
$1,250,000 of 15-year convertible sub¬
ordinated debentures due May 1, 1975, and 78,000 shares
of common stock (par $1).
The debentures and 35,000
common shares are to be offered for public sale by the
issuing company and the remaining 43,000 common
shares by the present stockholders thereof. Price—To be
supplied by amendment. Proceeds—For the purchase of
the Blum's interest in Specialty Shops, Inc., and the bal¬
ance
for general corporate purposes. Office—Stockton
and O'Farrell Sts., San Francisco, Calif. Underwriter—
F. S. Smithers & Co., New York City and San Francisco.

Jersey Central Power & Light Co. (5/24)
24 filed $10,000,000 of first mortgage bonds, due

be

Menu-Matics,

eral

•

March

of the

•

$110,000 for increase of inventory; $75,000 for research
and development; and $2,000 for documentary stamps;
$110,000 will be added to working capital; and the re¬
maining $88,400 is; unallocated. Office—5546 Satsuma

March

all of New York.

To

200,000 shares of capital stock. Price — $5
Proceeds—To repay interim loans up to $100,to Taylor & Co.; $100,000 for expansion of labora¬

and personnel for research and develop¬
ment; $100,000 to increase plant production facilities;
$116,000 for tooling and production of proprietary items;

'

—

Andersen, Randolph & Co., Inc.,

tory facilities

'

writer

Underwriter—Hancock Securities

Metalcraft Inc.

share.

000

'■

bursement

(5/16-20)
(letter of notification) $300,000 of 6V2% con¬
vertible subordinated debentures due March 30,. 1968.
Price—At 100%. Proceeds—For general corporate pur¬
poses.
Office—200 W. 57th Street, New York 18, N. Y.

(5/2-6)

Magnasyc Corp.

efforts, and toward expanding and broadening
research and development, including activities in the
fuel cell field. The company expects to move to larger
quarters near Waltham, Mass., and it estimates that re¬
quirements for new equipment and other costs, includ¬
ing moving expenses, will amount to at least $300,000.
A portion of the proceeds of the stock sale may be ap¬
plied to the cost of constructing the new building, but
the company does not anticipate that in excess of $400,000 of the net proceeds of this offering will be used on
a
permanent basis for such purpose. Office—152 Sixth
Street, Cambridge, Mass. Underwriters—Lee Higginson
'/ Corp., Shields & Co., and C. E,,y^terb<^g,,Towbin Co.,

■

—

Medallion Pictures Corp.

March 29

Feb. 26 filed

the

fied sales

'

Inc.

Seattle, Wash.

portion of the net proceeds of sale of additional stock
will be added to working capital to be applied toward
financing an increasing volume of business and intensi¬

v

Underwriter

Wash.

stock (par $1).
Price—To be supplied by amendment. Proceeds—Major

i

Properties,

(letter of notification) 75,000 shares of common

(par $1). Price—$4 per share. Proceeds—To pay
bills, for acquisition of Lacey Shopping Center, and for
working capital. Office—603 Central Bldg., Seattle 4,

Inc.

Ionics,

Mor¬

stock

/purchase of certain property. Office—1487 Northwest¬
ern
Bank Building, Minneapolis, Minn.
Underwriter—
Company or selected dealers. ; ;

!•

Road,

it Lord Baltimore Hotel Associates
April 26 filed $2,465,000 of limited partnership interests.
Office—New York City.

<it International Properties, Inc.
April 20 filed 750,000 shares of common stock. Price—
$1.65 per share
Proceeds—To meet financial and loan
commitments

Detroit, Mich. Underwriter—Peter
& Co., New York City.

gan

•

Oct.

■f

Calif.

-

Industries, Inc. (5/1C-20)
100,000 shares of common stock (par $1).
Price—$5.20 per share. Proceeds—To be added to com¬
pany's general funds, of which $200,000 will be used for
repayment of indebtedness, $45,000 to acquire additional
roll forming machinery and equipment, $74,000 to re¬
pay advances by two officers, and the balance for work¬
ing capital and other corporate purposes. Office—14637

in¬

39

Pro- ** capital. Office—2308 San Felipe Rd., Hollister, Calif. Un*
derwriter—Wilson, Johnson & Higgins, San Francisco,
Office—Passaic,

March 25 filed

sured mortgage loans, and for other corporate purposes.
None.

purposes.

Lite-Vent

Insured Mortgages of America, Inc.
14 filed $1,000,000 of
% collateral trust bonds.
Price—At 100% of principal amount. Proceeds—To repay

loans

general corporate

N. J. Underwriter—P. W. Brooks & Co., New York.

March

bank

(1863)

unit plus accrued interest from May 1, 1960.

per

April 19 filed 1,687,298 snares of common stock, to be
used in connection with the merger into ILR of Texas
Butadiene & Chemical Corp.
Office—Cleveland, Ohio.!
Note—The merger is being challenged.

temporary

Financial Chronicle

Commercial and

for

additional

working

Missile

Electronics, Inc. (5/16-20)
shares of common stock, of which
200,000 shares will be sold for the company's account
Feb.

5

filed 214,500

....

.

Continued

on page

40

40

(1864)

The Commercial and Financial Chronicle

Continued from page 39

North Central Life Insurance

and the remaining 14,500 shares will be offered for the
account of certain selling stockholders.
Price—$3 per

—To

Co., of St. Paul. The rate
exchange is to be supplied by amendment. Proceeds

of

share.

Proceeds—For general corporate purposes. Office

West 3rd St.,

—89

New York City. Underwriter—Pleas¬
Newark, N. J.

ant Securities Co. of

Mister

April

11

Service, Inc. (5/16-20)
(letter of notification) 80,000

shares of

com¬

stock (par 20 cents). Price—$2 per share. Proceeds
—For general corporate purposes. Office—338 Lafayette
mon

Street, Newark, N. J.
Co., New York, N. Y.
•

Monarch Tile

Underwriter—Jacey

Securities

Inc.

(5/3-4)

behalf of the issuing company, and the remaining
28,337
shares are to be offered for the accounts of certain selling
stockholders.
—

For

corporate purposes.
San

of

Angelo,

Nalley's, Inc.

loans

and

for

general

Office—Oakes Street at Avenue B,

Texas.

Underwriter—Rauscher, Pierce

Co., Inc., Dallas, Texas,
March

bank

y

*

&

$1,000,000 of convertible subordinated
debentures due April
1, 1975. Price—To be supplied
by amendment. Proceeds—$300,000 will be used for the
reduction of notes payable to banks and $150,000 will
be invested in subsidiaries, either as additional equity
or in the form of advances, and the balance of the
pro¬
will

ceeds

be

used

to

augment the company's working
capital position. Office—3410 South Lawrence St., Tacoma,' Wash. Underwriter — Dean Witter & Co., San
Francisco.

-

"

,

if National Aeronautical Corp.
April 22 filed 143,255 shares of common stock, to be of¬
fered in exchange for outstanding shares of common
stock of Air-Shields, Inc., at a rate of 2.9 shares of
National

for

share

one

of

Air-Shields.

The

offer

will

automatically terminate if holders of less than 80% of
the outstanding shares of Air-Shields accept the
offer;
the

and

if

offer

company

holders

the

reserves

of

less

than

right

1C0%

to

withdraw

If

accept.

Old

April 12 filed
common

Line

128,329

Life

Insurance

shares

of class

BB
are

the

Glass

Co.

To

—

(5/23-27)

& Smith

ner

Oil

Price—$2.50

corporate

OK Rubber

Underwriter—None.

Welders, Inc.

Mar. 29 filed 50,000 shares
be

with

the

supplied

OK

by

proceeds

to

of

amount

amendment.

of

$1,300,000; to repay other indebtedness
$228,600; and the balance of approxi¬

be offered,

share.

representing

tion)

St., Tucson, Ariz.

and
struction.

North

Underwriter—The

writer—Equitable Securities Corp., Nashville, Tenn.

March 28 filed 141,750 shares of

(5/9-13)

notification) 100,000 shares of com¬
(par one cent). Price—$3 per share. Pro¬
ceeds—Tor general corporate
purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning
Inc., New York, N. Y.
stock

,

National

Packaging Corp.

March 30 filed 60,000 of

(5/10)

capital stock (par $1).
Price—$6 per share. Proceeds—To retire
$87,000 of in¬
debtedness, to purchase $18,000 of additional
machinery
and equipment, to set
up
a
small plant
(at cost of
$28,000) on the West Coast to service the fruit
tray and
vegetable tray business in that
area, and for working
capital. Office
3002 Brooklyn
Ave., Fort Wayne, Ind.
Underwriter—First Securities
Corp., 212 W. Jefferson St.,
common

—

Ft.

Wayne, Ind.

National

Union

(letter of notification) 50,000 shares of com¬
stock (par 50
cents). Price—$4 per share. Proceeds

—For

in the

expenses

pany.

operation

Address—Montgomery,

B.

of

Ala.

an

insurance

com¬

Underwriter—Frank

Bateman, Ltd., Palm Beach, Fla.
Newark Electronics
Corp. (5/2-6)
March 17 filed 200,000 shares of
common stock.
To be supplied
by amendment.
the

Price-

company's

Madison St.,
•

New

Jersey Aluminum Extrusion
Co., Inc.

(5/10)
110,000 shares of class A
capital stock,
of which 50,000 shares
will be issued
by the company
and 60,000 shares are
outstanding and will be offered
by the holders thereof. Price—To
be supplied by amend¬
ment. Proceeds—To
be added to the
general funds of
the
March 10 filed

company and be available for
general corporate pur¬
poses.
Office
New
—

Laird
•

&

New

March
series

Brunswick, N. J. Underwriter
Company Corp., New York and
Wilmington,

—

Jersey Natural
29

filed

due

Gas Co.

$3,830,000

of

1970, to be offered

(5/2-6)

convertible

debentures,

to

holders of its outstand¬
ing common stock at the rate
of $4
principal amount of
convertible debentures for
each share
held.

#r
of

term

and

The deben-

*2™ a£Pr*nciPal amount in denominations

$50, $100, $500, $1,000

and

multiples of $1,000. Pro¬
applied to the partial
payment of shortbank loans
outstanding in the amount of

ceeds—To

be

obtained

struction

Park, N. J.
North

in

connection

program.

Office

—

$5,000,000

with
601

Underwriter—Allen

Central

Co.

&

the

company's

con-

Bangs Ave.,' Asburv
Co., New York.

(5/27)...

March 11 filed 420,945
shares of common
stock (par $1)
The company proposes to offer
142,860 shares

at $7 per share.
are

for cash 3ale

Additional shares (amount
unspecified)
exchange for outstanding shares of

to be offered in




Corp.

Nyack, N.
Corp., New York

Y.

(5/9-13)
common stock

(par 10c).
Price—$4 per share. Proceeds—Company will apply
$150,000 to repay existing short-term
obligations to banks;
$60,000 in payment for the net assets and name of Taconic

Factors, Inc. ,the stock of which is presently owned by
Leland E. Rosemond, President and Board Chairman of
Otarion; $100,000 for dealer and consumer advertising

machinery

—-

Parks & Co., Inc., New York.
Pearson Corp.

supplied

:

to

by

amendment.

the

repay

Pendleton

Tool

for research and development of subminiature
products; and the balance of approximately $100,000 to

initially to working capital and used for

purposes, including financing
and semi-finished inventory.

gen¬

of finished

Ossining,

N.

Y.

Underwriter—D. A.

Lomasney

&

Co.,

17

filed

offer the debentures for

holders

of

record

May

debenture for each 3.11

subscription by common stock¬
1960, at the rate of a $100

1,

shares

then held.

Price—100%

principal amount. Proceeds—For retirement of a note,
for
additional
and
improvements to properties, for
equipment and the balance for working capital and
other

purposes.

Office

500

—

Mich.

Agard Road, Muskegon,

Underwriter—H. M. Byllesby &
Co., Inc., Chicago,
Illinois.

tire

5%

connection

with

•

the

Pacemaker Boat Trailer
Feb. 29 (letter of
notification)
stock (par 10 cents).
For purchase of

Co., Inc. (5/2-6)
300,000 shares of common
Price—$1 per share. Proceeds—

equipment,

raw materials and working
Glenolden Ave., Glenolden, Pa.
Underwriters—Jacey Securities Co., and First City Secu¬
rities, Inc., New York, N. Y.

caiptal.

•

Office—622

E.

Pacific

Coast Properties, Inc.
(5/31-6/3)
April 19 filed 2,610,301 shares of common stock
(par $1),
of which 917,835 shares will be
offered at $10 per share
to

the

'

note

given to the V-T Co. in partial payment
certain of its assets, and the remainder
proceeds will be added to working capital.
Office—2209 Santa Fe Ave., Los
Angeles, Calif. Under¬
writers—Kidder, Peabody & Co., New York; and Mc¬
a

the

net

&

Co.,

Cleveland, Ohio.

•

(5/9)

March 10 filed $12,000,000 of first
mortgage bonds,
May 1, 1990i Proceeds—To be applied to the

due

company's
partially reimburse its
expenditures for that purpose.

1960 construction
program, or to

treasury

for

previous

Office—222

Levergood St., Johnstown, Pa. Underwriter
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody &
Co., Eastman Dillon, Union Securities & Co., Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co. (jointly); The First Boston
Corp.; Harriman Ripley
& Co. Inc. and
Blyth & Co., Inc. (jointly); Equitable
Securities Corp. Bids—Expected
May 9 at 12 noon New
—To

be

determined

York time at the offices of General
Public Utilities
67 Broad St., New York

Corp.,

City. Information Meeting —
Scheduled for May 6 between 10:00 a.m. and 12
noon.
Peoples Telephone Corp.

March 29 filed 15,250 shares of common
stock (par $50)
to be offered to stockholders
of record on
May 13,

at

the

rate

then held

used

of

1960,

additional share for each two shares
rights to expire at 3:30 p.m. (EDT) on

one

with

company's
provement
will

repay

incurred

be

per share. Proceeds—$1,100,000 will
in part short-term bank loans of $1,during 1959 to provide funds for the

continuing program of modernization, im¬
expansion; the balance of the proceeds

and

added

to

its

general

Washington Street, Butler, Pa.

funds.

Office—218

South

Underwriter—None.

Philippine Oil Development Co., Inc.
103,452,615 shares of capital stock, to be
for subscription
by stockholders at the rate of

March 30 filed

holders

of

Food

Giant

Markets,

Inc.

common,

preferred, and employee stock options. Price—For re¬
offering to be supplied by amendment. Pro¬
ceeds—$906,000 toward cost of property acquisition and
mainder of

the remainder for
general

Beverly Hills, Calif.

new share for each
5% shares held. Price
To be
supplied by amendment. Proceeds—To be added to the
company's working capital. Office
Soriano Bldg.,
Manila, Philippines. Underwriter—None.

one

—

—

if Photo-Video Electronics
Corp.
April 26 filed 125,000 shares of class
$4 per share.

Proceeds—$100,000

for

B

stock.

research

Price—
and

de¬

velopment, $200,000 for working capital, and the balance
for

sales

promotion

expenses.
Office
Cedar Grove,
Underwriter—D. F. Bernheimer &
Co., Inc., New
City.

N. J.
York

April'20

stock, to be is¬
company's Savings and
Stock Investment Plan for
eligible employees. Office
—National Bank Bldg.,
Toledo, Ohio.
in

(5/16-20)

—

if Pioneer Metals, Inc.

if Owens-Corning Fiberglas Corp.
April 22 filed 15,000 shares of common
sued

Inc.

offered

(5/2-6)
$450,000 of convertible subordinated
debentures due May
1, 1970. The company proposes to
March

Industries^

of its business and

Office—Scarborough Park,

New York.

Co., Inc., Nevv York.

March 25 filed 50,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To re¬

600,000

$35,000

be

Busi¬

to

Offering—Expected in June.

low-cost

market;

indebtedness

R. I. Underwriter—R. A. Holman &

Price—$75

eral corporate

Proceeds—$60,000 will

company's

Development Co. of Rhode Island; the balance will
be added to working capital for general
corporate pur¬
poses, principally to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,

to

common

>yC-

■

ness

be

hearing aid in the European

/

: ;

March 30 filed 50,000 shares of common stock. Price—To

June 15.

be added

(5/31-6/3)

Price-rProceeds—About $162,000 will be applied

share.

per

of the company's new model
hearing aids; $40,000 for
the establishment of production and sales
facilities of a

of

Proceeds—To be added
working capital.
Office—223 West
Chicago, 111. Underwriter—H. M. Byllesby
Co., Inc., Chicago, 111."
*

to

Otarion Listener

Broadwa^,

Boston

OU Chemical Co.

Life Insurance Co.

March 29
mon

First

County Canning Co., Inc.

Pennsylvania Electric Co.

proceeds of which were used for construc¬
the balance Will be used for further con¬
Office—10

San Francisco,

Co.,

indebtedness; $25,000 for ad¬
and equipment; and $118,752 for
working capital, promotion and advertising.
Office—
52 Broadway, New York.
Underwriter
G. Everett

Underwriter—None.

Proceeds—To be applied to the reduction of bank

(the

for the account of the present holders thereof. Price—
To be supplied by amendment. Proceeds
For general
corporate purposes. Office — Little Rock, Ark.
Under¬
—

$3

Donald

facilities and working capital. Office

Orange & Rockland Utilities, Inc.
March 17 filed 39,165 shares of convertible cumulative
preferred stock, series E, 5% (par $100) being offered for
subscription by holders of its outstanding common stock
of record April 14, 1960, at the rate of one share of
preferred for each 50 shares of common then held; rights
expire at 5:00 p.m. (EDST) on May 2. Price—$100 per

issuing company and 80,000 shares
outstanding
stock,
are
to
be
offered

Patrick

construction of

new

St.,

&

March 25 filed 140,000 shares of common stock.

of

2nd

Witter

Calif.

if Old Tucson Development Co.
April 18 (letter of notification) 80,000 shares of common
stock
(par $1). Price—$2.50 per share. Proceeds—For

notes

mon

$10). Price
Proceeds—Together

mately $800,000 will be added to working capital. Office
—551 Rio Grande
Avenue, Littleton, Colo. Underwriter
—Bosworth, Sullivan & Co., Inc., Denver, Colo.

E.

Townsend

Calif.
San Francisco and
York, and Hooker & Fay, Inc., of San Francisco,

utilized

stock (par

wholly-owned susbidiary finance company,
Acceptance Corp., will be used to reduce bank loans

for the account of the

National Lawnservice
Corp.
Jan. 11 (letter of

(5/9-13)

common

its

in the amount of

Office—62

Underwriters—Dean

be

a
$1,100,000 insurance company
$700,000 realized from the sale of installment

loan and
notes

per share. Proceeds—For
Office—9489 Dayton Way,

purposes.

Beverly Hills, Calif.

—To

capital.

ditional

shares of common stock, to be
offered to the holders of its
outstanding common stock.
The subscription date and record date will be
supplied
amendment.

."'s-

■

,

to the payment of certain

Shale Corp.
30 filed 300,000

March

\

be

Inc., New York.

Underwriter—Frank Karasik & Co.,

Vegetable Oil Corp.' (5/2)
March 24 filed $2,500,000 of convertible subordinated
debentures due April 1975. Price—To be
supplied by
amendment. Proceeds—$600,000 will be used to retire a
like amount of 614% promissory
notes; $431,250 to pay
the balance of the negotiated price for the
minority
interest of Utah Construction & Mining Co. in Stockton
Elevators, a subsidiary; and the balance for working

New

common stock (no par).
supplied by amendment. Proceeds — To
selling stockholders. Office—Broadway and 20th, East
St. Louis, 111. Underwriter—Merrill
Lynch, Pierce, Fen-

Price

Thursday,- April 28, 1960

.

Pacific

•

ac¬

(non-voting)
to

company.

—3425

Co.

stock, of which 43,329 shares

the

of

the

quisition of Air-Shields by National is not consummated
by the exchange of shares, Air-Shields will seek stock¬
holders' approval of a statutory merger. Office—Fort
Washington Industrial Park, Fort Washington, Pa.
National

/

Obear-Nester

in the

\

-

funds

writer—Pacific Investment Brokers,
Inc., Seattle, Wash.

general

(5/2-6)

filed

25

general

if Nuclear Engineering Co., Inc.
April 18 (letter of notification) 30,000 shares of common
stock (par 33.3 cents).
Price—$10 per share. Proceeds
—To replace bank financing, reduce accounts
payable,
purchase machinery and equipment and for working
capital. Office—65 Ray St., Pieasanton, Calif. Under¬

by

/

.

the

Vancouver, Wash.
Inc.

Minnesota St., St. Paul, Minn. Underwriter

—None.

Price—To be supplied by amendment. Pro-

repayment

to

April 14 filed 210,045 shares of

March 22 filed 58,337 shares of common stock (par $5) of
which 30,000 shares are to be offered for public sale in

ceeds

added

Office—335

•

Manufacturing,

be

.

.

corporate purposes.

Office—

Underwriter—Bear, Stearns

& Co.

•

Pacific Panel Co.
(5/23-27)
Feb. 8 filed 100,000 shares of
class

A common
stock,
subsequently increased to 150,000 shares (par 50
cents).
Price—$3.
Proceeds—For reduction of
indebtedness,
for working
capital; for establishment of three addi¬

tional outlets and to
provide additional working
capital
for a new subsidiary.
Office—1212 West 26th

Street,

mon

(letter of notification) 100.000 shares of
(par 10 cents). Price—$3
per share.

com¬

stock

ceeds—To retire

outstanding bank loans, inventory

chases, expansion

*

Pro¬
pur¬

and for

working capital. Office—1900
Miami, Fla. Underwriter—Hancock
Securities Corp., New
York, N. Y.
Piper Aircraft Corp.
(5/23-27)

N. E.

Miami Court,

April 15 filed 100,000 shares of
Price—To be related to the

common

stock, (par $1).

current market for outstand¬

shares at the time of
offering. Proceeds—To repay a
$1,000,000 short-term bank loan.
Office—820 East Bald
Eagle St., Lock Haven, Pa.
Underwriter—The First Bos¬
ton Corp., New York.
ing

Plastic & Fibers,

Inc.
(letter of
notification) 85,714 shares of common
(par 40 cents).
Price—$3.50 per share. Proceeds

Jan. 18
stock

--For

general

corporate purposes.

Office

—

Whitehead

Ave., South River, N. J.
Underwriter—Arnold Malkan
& Co., Inc., New
York, N. Y.
•
Precision Circuits, Inc.
(5/23)

March

7

filed $250,000 of
convertible subordinated de¬
bentures, due April 1, 1970, and
37,500 shares of common

stock
one

(par 20 cents) to be offered
in units consisting of
$100 debenture and 15
common shares.

per unit.

Price—$150
new facilities, and
Office—705 South Fulton

Proceeds—For equipping of

for general
corporate purposes.

Avenue, Mount Vernon, N. Y.
Lomasney & Co., New York.

Underwriter—Myron A.

,

V

Volume

•

Premier

191

Number

5946

.

.

.

The Commercial and Financial Chronicle

Industrial Corp.

(5/2-6)
outstanding shares of common
stock (par $1) of which 200,000 shares will be offered for
public sale and 12,500 shares to employees of the com¬
pany by the holders thereof.
Price—To be supplied by
amendment.
Proceeds—To selling stockholders.
Office
—4415 Euclid Avenue, Cleveland, Ohio.
Underwriter—
—A. G. Becker & Co. Inc., New York and Chicago.
March

filed

28

212,500

amendment.

Office—52

Pyramid

•

share for each warrant at

a

Broadway, New York.

Offering—Ex¬

ceeds—To

Central National

•

ceeds

per

to

are

Development Corp.

as

dividend

a

to

its

which

Office—304

•

&

East

44th

St., New York.
Corp., New York.

Co.

Reliance

Manufacturing

Co.

of

Underwriter—

ferred

(5/9-13)

•

Renner, Inc.

March

working capital. Office
Philadelphia, Pa. Underwriter
Philadelphia, Pa.
•

Ritter Finance

Co., Inc.

—
—

1975,„ and

warrants
shares

for

the

purchase

of

75,000

class B"

Roller Derby

the

TV, Inc.

will

to
repay
bank
loans;
and
general
corporate purposes.
Heri¬

$300,000
for

use

structed

debtedness

to

Smilen for

in the three supermarkets to

be con¬
by others; $25,000 to pay an in¬
Smilen; and the balance for general
corporate purposes. Office — 47-02 Metropolitan Ave.,
Brooklyn, N. Y.
Underwriter—Federman, Stonehill &

and the remaining 145,000 shares will
be sold for the account of certain selling stockholders.
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes relating to the production
company,

of

two

its share
of the
stock
as
follows:
$175,000 for construction and equipping of a supermar¬
ket in Franklin Square, L. I., to be leased to Smilen;
$500,000 to purchase fixtures and equipment to be leased
tage

Underwriter—Stroud & Co.,

issuing

sales

of

balance

March 30 filed 277,000 shares of common stock, of which
117,000 shares are to be offered for public sale by the

and

remaining

supermarkets;

Office—Church Road and Green¬

Ave., Wyncote, Pa.
Inc., Philadelphia, Pa.

association

payments under a contract
supermarkets and commissary
from
Windmill
Food
Stores, Inc.; $300,000 for
in¬
ventory and supplies for the opening of three new

Price—$1,000 per unit. Proceeds—To be
company's general funds and used initially

wood

in

shares

for

class B shares.

to reduce bank loans.

filed

proceeds for
purchase

to April 30, 1970. It is proposed to
offer these securities of public sale in units, each con¬
sisting of one $1,000 debenture and a warrant for 50
added to the

(5/16-20)

with Heritage Industrial
of Smilen common (par $1) and
200,000 shares of Heritage (par $1). It is proposed to offer
these
securities
for public
sale in units, each unit
consisting of one share of Smilen and one share of
Heritage stock. Price—To be supplied by amendment.:
Proceeds—Smilen will use $95,000 of its share of the

up

for

use

Smilen

due

Co., New York City.

motion

come

filed

<

pay

the costs and expenditures inci¬

its

Spring St., Los Angeles, Calif. Underwriter—William R.
Staats & Co., Los Angeles, Calif.
Inc. (5/9-13)
(letter of notification) 150,000 shares of class
common stock (par $1). Price—$2 per share. Proceeds
Squan Marina,

March

18

general corporate purposes.

Address—Route 70 &

Upper Manasquan River Bridge, Brielle, N. J.
writer—B. Fennekohl & Co., New York, 1ST. Y.
Sottile,lnc.

Under¬

Inc.)
$1),
to be issued and sold for

(Formerly South Dade Farms,

July 29 filed 2,000,000 shares of common stock (par

senting

25

requirements

operatons until such time as it has an in^
from its loans and investments. Office—650 South

dental to

•

200,000

reserve

Spring Street Capital Co. (5/9-13)
1 filed 3,000 shares of common stock (par $100)
to be offered in units of five shares at $1,000 per share.
Proceeds—For loans to and the purchase of securities
of certain business concerns. It may also use a portion

of

Corp.

(5/2-9)

31

By-Pass Road., Elkhart, Ind. Underwriter—Rodman &
Renshaw, Chicago, 111. Offering—Expected in mid-June.
March

1530 Lombard St.,
Stroud & Co., Inc.,

March 16 filed $1,500,000 of 6V2% debentures due May 1,
common

stock

Pro¬
ceeds—To be added to the company's working capital
and used for general corporate purposes.
Office—2520

Stores, Inc.

legal

of the proceeds to

and

Price—To be supplied by amendment.

Food

the

•

A

Smilen

of

March

—For

11

stockholders

Industries, Inc. (5/2-6)
120,000 outstanding shares of common
stock (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office — 1 West 34th
St., New York. Underwriters—Shearson, Hammill & Co.,
and J. C. Bradford & Co., both of New York.

•

common

and

Spartans

Price—$100 per unit.

of class A

directors

together

with respect to
Office—2013
Springs, Dallas, Tex. Underwriter—None.

March

Proceeds — To fi¬
Office—Ingraham Bldg., Miami, Fla.
Underwriter—Sire Plan Portfolios, Inc., New York.

(par $1).

(5/9-13)

—For

share.

Skyline Homes, Inc.
April 15 filed 115,000 shares

The remaining

(letter of notification) 75,000 shares of com¬
stock (par 50 cents). Price—$4 per share. Proceeds

mon

(par

Normandy Isle, Inc. (5/16)
of 10-year 7% debentures

are

1, 1960, at the
then held.

shares

to certain persons,

shares of common stock. Price—
Proceeds—For the drilling of three wells
and the balance for working capital. Office—2720 West
Mockingbird Lane, Dallas.

be

$225,000

V-k

$2 per share.

acquisition.

nance

110,000 shares
are now outstanding and
are to be offered for sale by
the present holder thereof.
Price—To be supplied by
amendment.
Proceeds—For
repayment of short-term
bank debt.
Office—350 Fifth Ave., N. Y.
Underwriter
—Glore, Forgan & Co., New York.
company.

filed

9

each

Southwestern Oil Producers, Inc.

4,500 shares of $3.50 cumulative, non-callable, partici¬
pating preferred stock (par $5), to be offered in units,
each unit consisting of one $50 debenture and one pre¬

March 28 filed 150,000 shares of common stock (par $5),
of which 40,000 shares are to be offered for public sale
for account

to

for

March 23 filed 700,000

capital,

required

Sire Plan of

March

Price—$5 per share. Proceeds—To pay
$110,000 bank note and for general corporate purposes.

Laird

funds

whom

meet

Cedar

for

writer—Shearson, Hammill & Co., New York.

2,800

stockholders.
a

and

of

share

shares will be offered

additional insurance in force thus acquired.

thereby reducing the amount
borrowed under its revolving
credit agreement and putting the company in a more
favorable position to secure, through borrowings, such
additional funds'!as may be required from time to time.
Office—105 White Plains Rd., Tarrytown, N. Y.
Under¬
of

be

distributed

working

pany's

publicly offered and 187,392
be purchased by Christiana Oil at $4.75

and

and

and 12,500 shares being outstanding stock, by
Geoffrey R. Simmonds, president. Price — To be sup¬
plied by amendment. Proceeds — To be added to com¬

(5/31-6/3)

share

693

stock, of which

loans

new

with stock purchase warrants for
23,859 shares, for purchase for investment. Price—To be
supplied by amendment. Proceeds—To be used for the
compariy's general insurance business, thus enabling the
company to acquire additional reinsurance agreements
with other insurance companies, service such agreements

company

For general corporate purposes. Office — Village of
Greene, County of Chenango, of New York. Underwriter
—George D. B. Bonbright & Co., Rochester, New York.

per

bank

one

company,

$1) constituting its first public offering, of which 100,000
shares are to be offered for public sale by the issuing

—

shares

reduce

of

some

Pearson,

Simmonds Precision Products, Inc. (5/16)
30 filed 112,500 shares of common stock

Raymond Corp. (5/2)
March 22 (letter of notification) 15,000 shares of com¬
mon
stock
(par $5). Price — $20 per share. Proceeds

to

rate

com¬

—

Indemnity & Life Insurance Co. (6/1)
238,590 shares of common stock (no par).
offer this stock for subscription

by common stockholders of record May

(5/23-27)

Proceeds—To

29 filed

Unsubscribed

March

Street, Mt. Vernon, N. Y. Underwriter—Walter R. Blaha
& Co., Inc., Long Island City, N. Y.

are

share.

Southwest

The company proposes to

Office—Gardena, Calif. Underwriter—
Marron, Sloss & Co., Inc., New York City.

(par 10 cents). Price—$3 per share. Proceeds
—For general corporate purposes. Office—11 E. Second

shares

•

Mar.

working capital.

stock

300,000

—

construction

Proceeds—For working capital
of new
plant. Office—4441 First

Bank Building, Phoenix, Ariz. Underwriter—
White, Weld & Co., New York City. Offering—Expected '
sometime in May.

80,000 shares are to be sold for the account of the
issuing company and 20,000 shares are to be sold for
the account of the present holder thereof.
Price—$9

Co., Inc., New York.

March 30 filed 487,392 shares of common stock, of

Office

purposes.

amendment.

National

(par 10 cents). Price—$1.50 per share. Pro¬

For general corporate

—

by
the

and

Office—

Corp. (5/16-20)
(letter of notification) 200,000 shares of

Price—To be sup¬

debentures and 3 shares of common.

plied

Building, Richmond, Va. Under¬
Corp., New York.

Sierra Electric Corp.

Rajac Self-Service, Inc. (5/16)
(letter of notification) 100,000 shares of com¬

Broadcasting &

Bank

Higginson

;

Southwest Forest

Industries, Inc.
Jan. 29 filed $12,000,000 of 6*4% subordinated income
debentures, due Jan. 1, 1985 and 360,000 shares of com¬
mon
stock (par $1), to be offered in units of $100 of

loan,

customers.

March 29 filed 100,000 shares of common

March 18

Reeves

bank

Broadway, New York, N. Y. Underwriter
Murphy & Co., Inc., New York, N. Y.

10 filed

mon

term

a

•

Instrument

stock

mon

Lamp Corp. (5/2-6)
120,000 shares of class A stock. Price—$5
per share.
Proceeds — To repay a bank loan, and for
working capital. Office—300 Jelliff Ave., Newark, N. J.
•

Service

March 23

Radiant

Underwriter—Amos Treat &

retire

available for loans to

be

writer—Lee

West Armstrong Ave., Chicago, 111. Underwriters—A. C.
Allyn & Co., Inc., and Shillinglaw, Bolger & Co., both of
Chicago, 111.

Feb.

Co. of San Francisco and New York.

Security Industrial Loan Association (5/23-27)
April 13 filed $500,000 of 7% convertible subordinated
debentures due May 1, 1975, and 50,000 shares of com¬
mon stock. Prices—To be supplied
by amendment. Pro¬

company's working capital
corporate purposes. Office—5353

general

Proceeds—To

(5/2-6)

Co.

filed

16

—

and for
working capital. Office—17 Bridge St., Watertown, Mass.
Underwriter—Peter Morgan & Co., New York.

Mouldings,

for

off $300,000 of bank in¬
working capital purposes.

pay

general

Nevada Telephone

41

100,000 shares of $25 par cumulative
convertible preferred stock.
Price—To be supplied by
amendment.
Proceeds
To retire some $2,000,000 of
bank loans and to finance in part the company's continu¬
ing construction program. Office—125 Las Vegas Blvd.
South, Las Vegas, Nev. Underwriter—Dean Witter &

Seaboard

ment.

Proceeds—to be added to the

used

Southern
March

Plywood & Lumber Corp
(5/2-6)
$300,000 of QV2% subordinated convertible
debentures, due April 1, 1970, and 30,000 shares of com¬
mon stock, to be offered in units, each unit consists of
$500 principal amount of debentures and 50 shares of
common stock (par $1). Price—To be supplied
by amend¬

Inc.
(5/9-13)
March 30 filed 158,000 shares of common stock (par $1)
of which 3,588 shares are to be offered for public sale by
the issuing company and the balance, being
outstanding
stock, by present holders thereof. Price—$11 per share.
and

and em¬
supplied by

be

Feb. 25 filed

pected in late May.
•

To

—

pected in mid-May.

price of $3.25 per share. The warrants were issued in
and after May, 1954, in connection with a previous pub¬
lic offering and included 46,000 to the underwriter, Si
D. Fuller & Co., and 46,000 to the company's officers
and employees.
At present there are 89,675 warrants
outstanding. The warrants are exercisable until June 25,
1960.

for

and

directors, .officers
Price

Office—225 Erie St., Lancaster, N. Y. Underwriter—The
First Cleveland Corp., Cleveland, Ohio. Offering—Ex¬

common stock to be issued
holders of the company's outstanding stock purchase
one

to

company.

Proceeds—To

debtedness

Pyramid Electric Co.
April 1 filed 89,675 shares of
to

allotment

the

of

ployees

•

warrants at the rate of

for

reserved
-

(1865)

which

1,543,000 shares are

and 457,000 shares, repre¬

the account of the company,

outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be supplied by
amendment.
Proceeds—To retire 70% of the common
invest

outstanding at the date of the stock offering; to
in the capital stocks of six of the company's

seven

bank subsidiaries; to repay a

stock

bank loan of $6,400,-

to working capital; to retire certain longterm indebtedness; and to develop citrus groves.
Offic©
—250 South East First Street, Miami, Fla.
Underwrite®*

000; to add

York, Offering—Indefinite.

—Bear, Stearns & Co., New

if State Loan & Finance Corp.
April 25 filed 13,222 shares of class A common stock,
issuable upon exercise of stock purchase warrants. Ac¬
cording to the prospectus, on Sept. 30, 1959, the com¬
pany merged with Equitable Credit Corp., which had
outstanding warrants to purchase 52,890 shares of its

at various prices. Under
(State Loan); as
surviving corporation, agreed to issue one share of
its class A common upon exercise of warrants to pur¬
chase each four shares of the said preferred, with the
subscription price appropriately adjusted. The exercise
price ranges from $19 to $24 per share. Office—1200
Eighteenth St., N. W. Washington, D. C.
participating preferred stock
terms

of

the

merger,

the

company

the

picture films of the Roller Derby,
and the balance for working capital. Office—4435 Wood-

March

ley Ave., Encino, Calif. Underwriter—To be supplied by

$1), of which 1,633,333 shares are to be publicily offered;

Price—To

general corporate purposes and working capital. Office—
790 Greenfield Drive, El Cajon, Calif. Underwriter-^J.
A. Hogle & Co., of Salt Lake City and New York.

$5.25

$500,000 of these shares are reserved for the granting of
restricted
stock
options to management officials and
employees. Price — $3 per share for public offering.
Proceeds-—To increase capital and surplus. Office—707

per

Market

April 5 (lettter of notification) $300,000 of 15-year sub¬
ordinated debentures, series B, due April 1, 1975. Price
—At face value. Proceeds—For working capital. Office
—514 Franklin Street, Tampa, Fla.
Underwriter—Se¬

•

amendment.
• Savannah
Newspapers, Inc.
April 20 filed 480,000 shares of common stock.

Price—

per share in lots of 20,000 or more; otherwise $5.55
share. Office—Savannah, Ga. Underwriter—John¬

•

Southeastern
25

filed

Security Insurance Co.
2,133,333 shares of common

stock

(par

Offering—Ex¬

Knoxville, Tenn. Underwriter—Lucien L.
Bailey & Co., Knoxville, Tenn.

(5/2-6)
(letter of notification) 100,000 shares of class
A common stock (par 10 cents).
Price—$3 per share.
Proceeds—For general corporate purposes. Address—U.

if Southern Electric Generating Co. (6/2)
April 25 filed $40,000,000 of first mortgage bonds, series
of 1960 due 1992.
Proceeds—For capital expenditures.
Office—600 North 18th Street, Birmingham, Ala. Under¬
writer— To
be
determined, by
competitive bidding.

son,

Lane,

Space

Corp.,

Savannah,

Ga.

pected sometime in June.
Schaevitz Engineering

March 29

S.

Route

130

and

Schaevitz

Boulevard

Merrill
Lynch, Pierce, Fenner & Smith Inc., and Blyth & Co.,
Inc. (jointly); Morgan Stanley & Co.; White, Weld &
Co. arid Kidder, Peabody & Co. (jointly); Eastman Dil¬
lon, Union Securities & Co.; Equitable Securities Corp.
and Drexel &
Co. (jointly).
.Information Meeting —
Scheduled for May 31, 1960., Bids-r-Expected to be reProbable

Pennsauken

Township, N. J.- Underwriter—Woodcock, Moyer, Fricke& French, Inc., Philadelphia, Pa.
s
Scott Aviation Corp.
Mar. 29 filed 169,680 shares common stock (par $1), of
which 62,000 shares are to be offered for public sale by

issplng ^company and 107,680 scares, being .outstanding
-StQck;, fexithfei hdl^T?^fcer,§pj^ 8,000 ' shareware; to be




St.,

.

-

ceived on.

bidders:

Halsey,

Stuart

&

Co.

Inc.;

Straza

March

•

Sun

Industries

14 filed

be

(5/2)

230,000 shares of capital stock (par $1).
supplied by amendment. Proceeds—For

(5/2)

Finance & Loan Co.

curity Associates, Inc. Winter

Park; Fla.

if Sun Oil Co.
April 21 filed 15,000 memberships in its
Plan for Employees of the company and

,

_

Stock Purchase
its subsidiaries;
232,000 shares of common stock to be issued under said
plari and 248,100 shares of outstanding common stock
which may be offered for possible public sale by 21
holders

July 1, 1960 to June
Walnut St., Philadelphia, Pa.

thereof during the period

30, 1961. Office—1608

v:;

r

/

.-

Continued on page 42

.

42

(1866)

The Commercial and Financial Chronicle

.

.

Thursday, April 28, 1960

.

> M'
i

Continued from page 41

'

Irf;

yi

i

Feb.

fi

i

due

*

26

filed

$1,000,000 of 6%

subordinated

debentures

April

1, 1975, and 100,000 shares of common stock
(no par), to be offered in units of $100 of debentures
and 10 shares of common stock.
Price—$100 per unit.
Proceeds—To be used in reorganization.
Office—366

w>,

!;;!■
i! j

,

Rubber Co.

Sun

machinery, equipment and saw mill and $75,000 for
working capital in connection with lumber operations;
$65,000 for January 1961 instalment payment on the
12,726 acres; and the balance to purchase livestock,
planting feed and pasture, raising livestock, and addi¬
working capital. Office—Fairfield, N. C. Under¬
writer—Participating dealers will receive 15 cents per

share.

•

it4'

tl.'v

construction.
Office—Bristol, Conn.
Higginson Corp., New York City.

ffi

•

l!!;l
mi'

fered

pursuant

chase

Plan.

Tampa,

ill
lJU.'j
i

<■;!!;
(iH'l
nf'H
)<■]>•

if!)1'!
.1

|i|!'

#
W
i»i;n

If?''!

I

pand

'rSJ
II

Fla.

present inventions, and to continue and

on

and

be used

and

development work

in

Price—$3

additional

as

business

share.

per

Pro¬

working capital for in¬

expansion

Office—121

purposes.

the

ex¬

field

liquid

compressibility devices and other areas. Office
St., North Tonawanda, N. Y. Underwriter
•—C. E. Stoltz & Co., New York.
•

part of May.

Industry Development Corp.

March 22 filed

$2,250,000 of 7% subordinated debenture

stock, due July 1, 1978, to be offered in denominations
of $500 and $1,000 and*
multiples of $1,000. Price—At
I,00% of principal amount. Proceeds—For general corpo¬
rate

including hotel and restaurant loans

purposes,
cured by real

estate

mortgages.
Underwriter—None.

rael.

Trans

one

Tech

Systems,

Inc.

'..

•;

:..

filed 65,000 shares of common stock
(par
Price—$10 per share. Proceeds—For general

29

cent).

corporate

purposes.
Office — 5505 Wilshire Blvd., Los
Angeles 48, Calif. Underwriter—Myron A. Lomasney &
Co., New York.

March

Plastics, Inc.

15

(letter of notification) 150,000 shares of com¬
mon stock
(par 10 cents). Price—$2 per share. Proceeds
—For general corporate purposes. Office—175 I. U. Willets Road, Albertson, L. I., N. Y. Underwriters—Amos
Treat

New

& Co., Inc. and
York, N. Y.

• Tulshop
April
A

14

Martinelli, Hindley & Co., Inc.,

Inc.

(letter of notification)
stock.

common

Price—At

par

250,000 shares of class
($1 per share).
Pro¬

common stock ($1 par).
by amendment. Proceeds—To¬
gether with bank loan, will be used to repay a $6,075,000 balance
on, an
outstanding bank loan, and
the
balance wilT be addecf to working
capital. Office—232
Superior Ave., Cleveland, Ohio. Underwriters—White,
Weld & Co. Inc.,
Chicago and New Yorkf The Ohio
Company, Columbus, Ohio; and Sanders & Co., Dallas,

expire

pay

May 6 at 12:30 p.m* EST. Proceeds—to re¬
short-term loan, for additional working capital,

a

on

establish expanded executive sales and manufac¬

turing personnel and to continue research and develop¬
ment, and the balance to lease or purchase additional

factory and office

Office—188 Webster St., North
Tonawanda, N. Y. Underwriter—C. E. Stoltz & Co., N. Y.
space.

Tulsa, Okla.
•

Union

Financial

March 11 filed

Price—To

Office—1137 S. Harvard,

Underwriter—None.

be

Corp.

(5/3)

325,000,share§ of

supplied

Texas.

•

Telecomputing Corp. (5/16-20)
April 11 filed 100,000 outstanding shares

di;j|

stock

if
»

I?

u

4?')

|i
'K

(par $1).

Proceeds

Price—To

supplied by
stockholder. Office

To

Telectro

Industries

(5/9-13)

Underwriter—Milton D.

Blauner

Life

Insurance

Co.

50,0,00 shares of capital stock, to be of¬
subscription by holders of outstanding stock

in the

ratio of one new share for each five
shares held
Price—To be supplied by amendment. Proceeds—To in¬
crease

capital and

surplus. Office—1717 California
Underwriter—None.

Denver, Colo.
United

Components, Inc.

(5/16-20)

March 2 filed 110,000 shares of
10,000 shares are to be offered

common

St.,

stockholders.

Universal

for

of

rate

be offered for sale in

units, each consisting

$1,000 debenture (with 5-year warrants to purchase
shares initially at $15 per share) and 40

a

20

to

'

common

of

common

stock.

Price

—

To

be

supplied

by

Proceeds—For repayment of current credit
agreement with bank and the balance will be
applied to
the

company's construction program. Office—445 Fair¬
Ave., Stamford, Conn. Underwriters
Ladenburg,

field

—

Thalmann

&

Co., Bear Stearns & Co.

and

Sutro

all of New York.
•

Teletray Electronics Systems,

Jan.

27

filed

Price—$3

150,000

per

purposes.

share.

Inc.

shares of class
Proceeds—For

A

Bros.,

common

general

stock.

corporate

Bonifant Street, Silver Spring,
Md.Underwriter—A. T. Brod & Co., New York
City has

withdrawn
&

as

underwriter.

New

underwriter

is

Miller

Co., Inc., Philadelphia, Pa.

—To be supplied by amendment.
duction of indebtedness and for

•

Proceeds—For the
construction

Underwriter—Dillon, Read
Offering

—

re¬

expenses.

&

Expected late in

Thermal

Industries of Florida, Inc. (5/2-6)
120,000 shares of common stock (par
$1).
Price—$6 per share.
Proceeds—To be added to the
company's general reserves.
Office—Miami, Fla. Un¬
derwriter—Peter Morgan &
Co., New York.
Feb.

26

filed

Three-L-Corp.
March 24 filed 3,500,000 shares of common
stock.
Price
—$1 per share.
Proceeds—$46,098 will be applied to
the acquisition of 493 acreas of land in
Fairfield Town¬
ship, Hyde County, and $15,000 for payment of the

July instalment

acquisition of about 12,726 acres in
Hyde County; $500,000 for purchase and installation of




on

ment.

capital shares. Price—To be supplied by amend¬

Proceeds—Approximately $1,000,000 will

for general
corporate purposes, and
distributed to holders of the

and

sale

of

the

units.

be used
the balance will be
stock

prior to

Office—425

Brea

Avenue, Inglewood, Calif.
Brothers, New York City.

South

the
La

Underwriter—Lehman

purchase

prospectus, 88,017 shares
of

stock may be offered for sale
by

common

holders

stock, and 16,500
According to the
preferred and 88,017 shares

warrants.
of

thereof, namely

34,978

preferred

the present

and

common

shares by Bernard
Fein, a Director, and 53,039 preferred
and common shares
by B. S. F. Co., 13% of whose stock
is

owned

by Maurice Goodman, a Director, 16,500 war¬
rants and 16,500 common
shares are issuable to H, L,<

Federman

and

Herman

Yaras in payment of a finder's
connection with the merger. Stock
pur¬

fee incurred in

chase warrants
the basis of
common

each

stock

warrant

share of

reserved

for

to

stockholders of record

now

at

common

option plan.

geles, Calif.

evidences

$17

issuance

debentures

distributed prior to the merger

warrant for each share of the

common

Additional
of

were

one

exercise

28,

1959;

purchase

are

these

of

on

company's

Oct.

right to

share, and 509,613 shares

per

upon

shares

the

V2
are

warrants.

issuable upon conversion

and

preferred stock and
Office—5221 West 102nd

under

a

stock

Street, Los An¬

.

Theater

Bldg.,

Jack¬

stock, to be of¬
stockholders at the

common

common

share for
date

record

/

-V-.~

four

each

is

to

be

be

available

shares

fraction

or

supplied

K«

for

use
in developing the company's tract
Tampa, Fla., for working capital and for
possible acquisition of other properties. Office—602 Flor¬

land

of

near

ida Theater
•

Bldg., Jacksonville, Fla. Underwriter—None,

Uranium Reduction Co.

March

31

(5/9-13)

filed

200,000 outstanding shares of common
stock (par 10 cents). Price—To be supplied by amend¬
ment. Proceeds
To selling stockholders. Office — 557
First Security Bldg., Salt Lake City, Utah. Underwriter—
A. C. Allyn &
Co., Inc., Chicago, 111.

u

—

Uris

Buildings

March

29

(with

filed

attached

Corp.

(5/2-6)
of sinking fund debentures
to purchase 800,000 common

$20,000,000
warrants

shares) and 400,000 shares of common stock. The offer¬
ing will be made only in units, each unit consisting of
(a) $100 principal amount of debentures with an at¬
tached warrant to purchase four shares of common

(b) two shares of

by amendment.
struction

common

*8

I

stock

stock. Price—To be supplied

Proceeds—To

repay

loans, defray

costs, and general corporate purposes.

.con¬

Under¬

writer—Kuhn, Loeb & Co., New York.
•

Vector

Manufacturing Co., Inc.

(5/9-13)

April 14 filed 250,000 shares of common stock (no par).
Of this stock, 100,000 shares are to be offered for
public
sale by the issuing company and 150,000
shares, now out¬
standing, by the holders thereof. Price—To be supplied
by amendment. Proceeds
For expansion. Office —

St.

1

—

Southampton, Pa. Underwriter—Paine, Webber, Jackson
&

Curtis, New York.

Viewlex, Inc. (5/16)
April 12 filed 200,000 shares of class A common stock
(par 25 cents). The offering will include 175,000 shares
to

issued

be

are

by the company

outstanding and will

the

and

25,000 shares which
the account of

offered for

oe

holders

thereof.
Price—$4 per share.
Proceeds—
8100,000 will be used to purchase additional high speed
production equipment; $150,000 for research
and development of new
products; $75,000 to be re¬
served

into

to

new

working

•

the costs of moving present facilities
enlarged quarters; and the balance for
capital
Office — 35-01 Queens Blvd., Long
cover

and

City, N. Y.

Underwriter—Stanley Heller & Co.,

York.

Vulcatron

set

Corp. (5/10)
(letter of notification) 100,000 shares of com¬
(par $1). Price—$3 per share. Proceeds—To
plant and equipment, to purchase machinery

stock

mon

up

and

a

equipment, and for working capital. Office

—
c/o
L. Berger, 209
Washington St., Boston, Mass.
Underwriter—P. de Rensis & Co., Inc., Boston, Mass. •

William

Wallace

Properties, Inc.

(5/31-6/3)
$12,000,000 principal amount of 6%

April 5

filed

vertible

subordinated

con¬

debentures, due June 1, 1975 and

360,000 shares of common stock (par $2), to be offered
only in units, each consisting of $100 principal amount
of debentures

United Industrial
Corp.
March 21 filed
88,017 shares of series A convertible pre¬
ferred stock, 614,130 shares of
stock

Florida

Marion Corp.

new

The

March 11

common

debentures, due 1980. Price

Office—Houston, Texas.

and two

common

Texas Eastern Transmission
Corp.
April 11 filed $25,000,000 of

Co., Inc., New York City.
May.

Office—Orange, N. J. Un¬

United Financial
Corp. of California (5/16-20)
March 30 filed
$6,000,000 of convertible subordinated
debentures due April 1,
1975, and 120,000 shares of cap¬
ital stock, to be offered in
units of $100 of debentures

issuance

Office—880

a

derwriter—Darius, Inc., New York City.

capital

(5/2)

Leighton,

equipment, advertising, and other

corporate purposes.

Office—602

by amend¬
ment. Price—To be supplied by amendment. Proceeds—
To be added to the general funds of the company and

general

are

pre¬

offered for sale

at

subscription by

one

thereof.

rities

new

cumulative

sonville, Fla. Underwriter—None.

Island

For

of 4V2%

($100 par).'Price:—To be

♦

market, or otherwise by public
$95 per share, or such lesser price
prices which may be obtained. Proceeds—To selling

New

—

Co., New York City.

automatic

stock, of which

Sheldon

to

stock

James

the

private sale

or
or

Proceeds

amendment.

ji'

American
filed

common

Proceeds—For

in the over-the-counter

director, at $2.50 per share and the remainder is to be
publicly offered. Price—To be supplied by amendment.

;!!i!

j,;:

11

for

share.

per

Office—1827 Boone Avenue,
10, N. Y. Underwriter—S. Schramm & Co., Inc.,
New York, N. Y., has withdrawn as underwriter. New

(5/9-13)
March 30 filed $6,000,000 of 6% subordinated
sinking
fund debentures, due May 1980 (with attached
warrants)
and 240,000 shares of common stock
(no par). These secu¬

shares

w

March
fered

&

Teieregister Corp.

|
M

;? id i

it Union Telephone Co.
April 20 (letter of notification) 2,000 shares of common
stock.
Price—At par ($25 per share).
Proceeds—For
expansion purposes. Address—Farmington, N. H.
Un¬
derwriter—None.
United

standing bank loan of $700,000 and to provide additional
working capital, to be used in part to reduce outstand¬
ing accounts payable. Office—35-16 37th Street, Long

of

•

Corp.

Dean

March 21 filed $1,000,000 of 6^% convertible subordin¬
ate-debentures due 1970.
Price —100%
of principal
amount.
Proceeds—To be used to eliminate an out¬

•

'r|f

North

—

—

City, N. Y.
Co., Inc., N. Y. C.

If

common

amendment.

selling
915
Citrus Ave., Los Angeles, Calif. Underwriter
Witter & Co., New York
City and Los Angeles.
—

Island

ft;

of

be

$5

—

general corporate purposes.

fered

each 5
to

Price

April 15 filed 435,120 shares of

(■

(5/23-27)

*

Bronx

Office—Jerusalem, Is¬
jv

•

se¬

ceeds—To purchase real estate.

with rights

(par $1).

ferred

-»

Taylor Devices, Inc.
Dec. 23 filed 18,705 shares of common stock
(par 25
cents), being offered for subscription by common stock¬
holders of record April 22 on the basis of 3 shares for
shares held. Price—$28.75 per share,

stock

Universal Marion Corp.
March 29 filed 31,361 shares

of

—188 Webster

Fabricators, Inc. (4/29)
(letter of notification) 60,000 shares of

29

underwriter is

Tourist

L. \

I
j

Universal

latter

Tri-Point

of ten

research

and to

,:hll

to the company's Employee Stock Pur¬
—
11 North Dale Mabry Highway,

seventy-fifths of a share for each
share held. Price—$28.75 per
share, with rights to expire
on May 5. Proceeds—For
capital and to secure additional
patents

Carpenter, President.

March

stock to be of¬

common

Office

the rate

•

Feb.

South

Tayco Developments, Inc.

at

M.

ceeds—To

—

Dec. 23 filed 5,390 shares of common stock
being offered
for subscription by common stockholders of record Mar.
25

T>

common

Bateman, Ltd., Palm Beach, Fla.

ic Tampa Electric Co.
April 21 filed 125,000 shares of

Electronics, Inc.

Water, Tampa, Fla. Underwriter—Donald V. Stabell, of St. Petersburg, Fla. Offering—Expected in the

Inc.

Szemco, Inc.
March 28 (letter of notification) 200,000 shares of com¬
mon
stock (par 10 cents).
Price — To be supplied by
amendment, and not to exceed $1.50 per share. Proceeds
—For working capital. Office—c/o Otto Edward
Szekely,
112 Washington St.,
Commerce, Ga. Underwriter—Frank
B.

r, {■

H.

ventory

Co.,

stock (par $1).
Principally for addi¬
working capital. Office—Florence, Ala. Under¬
writer—Marron, Sloss & Co., Inc., New York.
—

W

if >

Development

Thurow

200,000 shares of class A common stock,
(par $2.50) of which 100,000 shares are to be offered for
public sale by the issuing company and the balance by

tional

m

I

Pool

April 15 filed 250,000 shares of
Price
$5 per share. Proceeds

if4

1.1',")

Swimming

Underwriter—Lee

(5/31-6/3)

>vK

0-

(5/9-13)

Superior Electric Co.

•

capital, including a later repayment of $45,000 to U. S.
Pool Corp. Office —27 Haynes
Avenue, Newark, N. J.
Underwriter—Richard Bruce & Co., Inc., New York.

March 28 filed

March 17 filed 150,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For

!(!■,/

H')

Ave., Barberton, Ohio.- Underwriter—McDon¬
Co., Cleveland, Ohio.
'

ald &

(5/9-13)

of common stock to.be
Price—$2 per share. Proceeds—$221,826 will be applied to the repayment of loans to United
States Pool Corp. which were used for general
corporate
purposes, and the balance will be utilized for working

publicly offered.

tional

Fairview
I

United States Boat Corp.
28 filed 350,000 shares

March

and three shares of
—To be supplied by amendment.

stock.

common

Price

Office—Dallas, Texas.
Underwriter—Harriman Ripley & Co., Inc., New York.
•

Waltham

Precision

Instrument Co.,

(5/31-6/3) ..
April 15 filed 700,(300 shares of
.

.

Inc.
.
.

common

stock

,'v/I

(par $1).

It is proposed that this
basis to the

offering will be on a subscription
company's present common stockholders.
Price—To be supplied by amendment.
Proceds—$600,000
to

pay

the

balance

of

the

purchase

price

Manufacturing Co., Inc. stock; $350,000 to

for
pay

Boesch
the 5%

chattel mortgage note held
by the Secretary of the U. S.
Treasury as assignee of the Reconstruction Finance Corp.;

$200,000 to
ment

the

pay the 6% secured notes issued as part pay¬
for the stock of Electro-Mec
Laboratory, Inc.; and
for working capital and
other

balance

purposes.

corporate

Office—221

Crescent St.,

Waltham, Mass. Un¬

derwriter—Schweickart & Co., New York.
Waltham Watch

v-

Co.

March

30 filed $1,500,000 of 7%
sinking
nated debentures series A due
April 30,

year

common

stock

275,000 shares of

fund subordi¬
1975, with fiveattached, and
stock (par 50 cents). A $1,000

purchase

common

warrants

debenture with warrants for the
purchase of 50 common

■p

shares at an

Number 5946

191

Volume

.

.

.

The Commercial and Financial Chronicle

initial exercise price of $3.50

share, will

per

i

\

t!

Acme

additional 200,000 shares of common stock will be offered
for subscription at $3.50 per share.
The offer will be
made first to stockholders of record on May 2, 1960, for

Corp

com¬

Malkan

Y.

;

;

;

:

.

y'v

■

,•

7

;

^

.

Industries

Welis

Arco
Mar. 2 it

is

7

-v7:

'"/

■

'•*

Whitmoyer Laboratories, Inc.>(4/29-5/3)
Jan. 28 filed 85,000 shares of common Stock and $500,000

debentures, due 1977, with warrants
purchase of 10,000 additional common shares at
$5 'per share. ' Price — For the < debentures, 100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment.
Office—Myerstown, Pa.
Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,

for the

•

1

■

working

class

A

stock

to

2%
;

Wisconsin

&

Co.

Power

Co..

(managing).

77 7.7. y7.,.

to be offered to holders of its

the basis of

$32.25

f
■

fi

one

share. Proceeds

outstanding

common

with

Norman
>

/

&

the

company

J7
-

A

reported that around July about $10,000,-

was

firs^ mortgage bonds will be filed. Underwriter—
competitive bidding. Probable bid-

ders: Halsey, Stuart & Co. Inc.,

Kidder, Peabody & Co.,
(jointly); First Boston Corp.,
Co., Merrill Lynch, Pierce, Fenner & Smith Inc.

White, Weld

Blair &

& Co.

and Stone & Webster

Securities* Corp. (jointly).

are received. Under¬
competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Morgan Stanley & Co;-Bids—Expected to
be received on May 10 up to 11:00 a.m. (DST) at Room
2315, 195 Broadway, New York City.

undetermined amount of

an

Underwriter—To

May.

common

stock

some¬

March

it

11

Gas

announced

was

Inc.

V/V/"-",/■

that further debt financing

Stanley & Co.; Lehman Brothers., Eastman Dillon, Union
Securities & Co., and Goldman, Sachs & Co. (jointly).

•

Consolidated

stock. Price—
$2 per share. Proceeds—For purchase of certain prop¬
erty, for constructing a motel on said property and vari¬
ous
leasehold improvements on the property.' Office—
7805 Sunset Blvd., Los Angeles,
Calif. Underwriter—
Standard Securities Corp., Los Angeles.
Yale

March

common

filed

(par 25
cents) of which 150,000 shares are to be offered for pub¬
lic sale by the issuing company and the balance by the
company's board chairman.
Price — $5.50 per/ share.
to

acquire American Freight Forwarding Corp. and for
expansion of the freight forwarder operation; $150,000
to

restore

minal

funds

advanced

in

connection

with

the

balance

460

12th

Avenue, New York.
Co., Inc., New York.

Underwriter—Michael G.

&

Zero

Manufacturing Co.

(5/9-13)

Kletz

March 28 filed 200,COO shares of common

125,000 shares

stock, of which

being issued and sold by the company
being sold by certain stockholders.
Proceeds—$250,000 will be used for the construction of
new

33,600

are

square

foot

industrial

building

in

Bur-

bank, Calif., $250,000 for the purchase and installation
of

machinery and equipment; $150,000 for further
research
and
development in the modular container
new

field; and the balance will be added to working capital.
Office—1121 Chestnut St., Burbank,. Calif. Underwriter
—Shields & Co., New York.




of New

York

(6/14)

Consolidated Research & Mfg. Corp.
16 it was reported that this firm, founded last
August as a Delaware corporation/plans its first pub¬
lic financing in the form of a common stock offering

/-Dec,

with

.

containers to combat ice, snow, and fog.
expansion. Office—1184 Chapel St., New

Proceeds—For

Haven, Conn. President—Marvin Botwick.
it

Power Co.

was

reported that this company is planning

to raise new funds

probably from the sale of first mort-

/ gage bonds and debentures. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart

&

&

and

Co.

Co.

Inc.; Morgan Stanley & Co.; White, Weld
& Co. (jointly); First Boston Corp.

Shields

and Harriman Ripley
Deckert

March
mon

16 it

stock

Proceeds

—

& Co.

Dynamics,
was

are

For

(jointly).

for July 5,

Expected

July

to

Gulf Power Co.
Dec.

it

9

,

announced

expected

general

that

100,000 shares of com¬

to be filed in early May.
corporate purposes. Office —

Securities Corp.,

Equitable Gas Co.

the

16

on

7.

In¬

Bids—

Registration

—

was

(7/7)
that the company

announced

plans regis¬

of

50,000 shares of preferred stock (par $100).
Underwriter—To be determined by competitive bidding.
Probable bidders: Harriman

Ripley & Co.; Eastman Dil¬
and
Salomon Bros. &
(jointly); Equitable Securities Corp.; Kidder,
Peabody & Co., and White, Weld & Co. (jointly). In¬
formation Meeting—Scheduled for
July 5, 1960. BidsExpected to be received on July 7.
Registration —

lon,

Union

Securities

&

Co.,

Hutzler

Gulf States Utilities Co.

(6/20)
reported that the company will issue and
$17,000,000 of 1st mtge. bonds. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
was

Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. and
White, Weld & Co. (jointly); Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co.
(jointly);
Lehman
June

Brothers.

20 at

Bids—Expected

to

be

received

on

12 noon.

Hayes Aircraft Corp.
12 it was reported that an issue of convertible de¬
is being discussed and may occur in the next

few months.
Office—Birmingham, Ala. Possible Under¬
writer—Sterne, Agee & Leach, Birmingham, Ala.

Houston
March

22

stockholders

approved

a

was
announced in the company's annual
that it anticipates approximately $35 million in
new
money will
be required in 1960 to support the
year's construction program, and to repay outstanding

bank loans.

the

Studies to determine the nature and timing
of additional securities are presently

issuance

under way.

first

Bros.

Last August's offering of $25,000,000 of 4%%
mortgage bonds was headed by Lehman Brothers,
Dillon, Union Securities & Co. and Salomon
&

Hutzler.

Office

Electric

—

Building, Houston,

Texas.

Idaho
March

Power

30

it

Co.

and

1990.

Proceeds—For

sell

To

—

/,

reported

was

issue

$15,000,000
be

that
of

the

1st

plans to
bonds due

company

mortgage

capital

expenditures, etc. Under¬
by competitive bidding.
Stuart & Co. Inc.; Blyth &

determined

bidders:

Halsey,

Co.,

Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly); Equitable Se¬
curities Corp.
Illinois Bell
March
issue

24

of

Telephone Co.

directors
new

authorized

common

subscription rights

finance

10 held

the

shares.
on

plans
The

for a $61,000,090
stockholders' will

the basis of

one

new

share

at the time of issue. Proceeds—To

company's
—Expected in June.

construction

program.

help

Offering

Indianapolis Power & Light Co. (9/27)
was reported that the company will issue and
sell $12,000,000 of 30-year first mortgage bonds. Under¬
writer—To be determined by competitive bidding. ProbApril 18 it

proposal to increase

company's number of authorized preferred shares to

'W«*~

Lighting & Power Co.

it

report

for each

Pa. Underwriter—Plymouth
York City.

March

received

be

1960.

Scheduled for June 3.

have

Inc.

Palmyra,
New

of

(jointly); Eastman Dillon, Union Securities & Co.

Probable

2

SEC

formation Meeting—Scheduled

writer

Consumers

the

Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &
Smith Inc.; Salomon Bros. & Hutzler, and Drexel & Co.

scheduled for next spring. Business—The company pro-

March

(7/7)

plans regis¬
$5,000,000 first mortgage 30year bonds.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Equitable Securities Corp.;
tration

dues

spray

Co.

announced that the company

was

Eastman

—

.

Power

it

9

Probable bidders: Halsey, Stuart & Co. Inc.
and First Boston Corp. (jointly), and Morgan Stanley &
Co. Bids—Expected to be received on June 14.

and 75,000 shares are

a

Dec.

of

ter¬

recently constructed in North Bergen, N. J. and
for expansion and improvement.
Office—

the

Edison Co.

bidding.

Proceeds—$400,000 to restore working capital expended

by

Information Meeting—Scheduled for Oct. 31.

Gulf

April 8 it was reported that the company expects to
sell $50,000,000 of first refunding mortgage bonds, due
1990.
Underwriter
To be determined by competitive

/

System, Inc. (5/9)
300,000 shares of class A stock

Express
25

determined

be

bentures

Wolverine Shoe & Tanning Corp. (5/2-6)
is planned for later in the year. Underwriter—To be deMarch 28 filed 100,000 shares of common stock (par $5). /• termined by competitive bidding. Probable bidders: Hal¬
Price—To be; supplied by amendment.
Proceeds—For
sey, Stuart & Co., Inc., Merrill Lynch, Pierce, Fenner &
additional working capital.
Office — Rockford, Mich.
Smith, Inc., and White, Weld & Co. (jointly); Morgan

Wonderbowl, Inc.
April 14 filed 3,401,351 shares of

Underwriter— To

SEC.

Feb.

System,

•

I

Nov. 3.

Underwriter—Kidder, Peabody &

Co., New York City.
.Columbia

plans regis¬
first mortgage bonds

30-year

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on

sell

time in April or

Underwriter—A. G. Becker & Co., Chicago, 111. and New
York.
■" V

the

with

(11/3)

$12,000,000 of

trust certificates is scheduled for sale.

to file

yet been determined.

as

Co.

announced that the company

was

of

April 19 it

bidding. Probable bidders:
Halsey, Stuart & Co. Inc. and Salomon Bros. & Hutzler.
Bids—Expected to be received on May 4 up to 1:00 p.m.
(EDT). 777*.
77/ 7/7:
City Gas Co.
March 10 it was reported that this company is expected

by

has not

Credit

Scheduled for June 3.

be determined by competitive

bidders:

it

9

Chicago, Milwaukee, St. Paul & Pacific RR. (5/4)
April 8 it was reported that $4,650,000 of equipment
v

:

company will need
The nature of the secu¬

new money.

Office—Detroit, Mich.

year.

tration

Electric & Gas Co.

To be determined by
and

:

Underwriter—Diran,

be issued

tration

also filed for FPC

Technical

Illinois

to

Dec.

frac¬

Co., Inc., New York City.

Central

000 of
,

—

determined

be

11

rities

to sell their fractional in¬

or

Office—Woodside, L. I., N. Y.

ing.

$20,300,000 at the time the proceeds
To

No

Corp.
April 20 it was reported that a "Reg. A" filing is im¬
minent covering the company's first common stock offer¬

Wisconsin Telephone Co. (5/10)
April 15 filed $20,000,000 of 35-year debentures, due
May 1, 1995. Proceeds—To be applied toward the re¬
payment of advances from American Telephone & Tele¬
graph Co. (parent) which are expected to approximate

—

March

On

Columbia

company's construction program, and for fur¬
ther construction expenditures/Office—231 West Michi¬
gan Street, Milwaukee, Wis. Underwriter—None.

Probable

holders.

$25^000,000 of
Motor

Light Co.
that the

Georgia Power Co.

utility, of Rapid City, S. D.,
stock (par $1) as a
common

about

this

common

its present

&

reported

was

March 28 it was reported that this company is develop¬
ing plans for borrowing operations, which may include
the issuance of debt securities, and possibly occur later

that the Federal Power Com-

Proceeds, estimated at about $968,000, will be used for
additions and improvements of the company's properties.

the

writer

of New

bonds, due 1990. The bonds will be sold to the
Equitable Life Assurance Society of the U. S. for 98.20%
of principal amount and will bear
interest of 5J/fc%.

y

stock

Co.,

gage

To be used to repay $12,000,000 of short-term bank loans incurred in connection
per

of

Corp.

Power

it

15

Ford

thorized the issuance and sale of $1,000,000 of first mort¬

be

share for each 10 shares held. Price—

common

approval to issue $1,000,000 of first mortgage bonds, due
.1990. April 14 it was announced that the FPC has au¬

March 22 filed 561,005 shares of common stock (par $10)
on

shares

dividend to

Feb. 3 it
Electric

company

of

Light Co.

announced

was

7,727

terests.

purchase additional inventory and
to improve the company's
position.
Office — Moonachie, N. J.
Kletz

this

&

will have
the option of buying the additional fractional interest re¬

the-balance

capital

soon

$500,000

Kletz

tional shares will be issued, and stockholders

Television

Underwriter—Michael G.
•

issue

to

Proceeds—To

and

&

Power

mission has authorized this

publicly offered, 15,000 shares to be issued pursuant to
a
restricted stock option plan/and 21,500 shares being
registered but not offered at this time. Price—$3 per
equipment

Hids

Feb. 11 it

System, Inc.
Jan. 29 (letter of notification) 86,403 shares of common
stock
(par $1).
Price—$3 per share. * Proceeds—For
general corporate purposes. ' Office—151 Odell Avenue,
Yonkers, N/Y. Underwriter—Equity Securities Co., 11
Broadway, New York City.

share.

Black

quired to make full shares,

if Win-Chek Industries, Inc.
April 26 filed 150,000 shares 'of

G.

'

Philadelphia, Pa.
Color

approximately

/through the sale of first mortgage bonds. Offering—Ex¬
pected during the first half of 1960.

of 6% subordinated

Wilier

77/.

1'-;.

v

Wolfe, Presi¬
dent, that the company plans record construction expen¬
ditures of $50,000,000
during 1960, probably financed

i

* '■

was

Florida

announced by J. Theodore

was

Power

10 it

March

& Electric Co.

Baltimore Gas

ap¬

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
Lynch, Pierce, Fenner & Smith Inc. (joint¬
ly); First Boston Corp.; Eastman Dillon, Union Securi¬
ties & Co. and Harriman Ripley & Co. (jointly); Lehman
Brothers and Blyth & Co. (jointly).

City.

March 3 it

repay

Merrill

and

Underwriter—Michael

York
-

•

fi

file

to

ders:

reported that sometime

was

expected to

stock.

$350,876 will be used to retire certain debts, with the
remainder to be used for construction, equipment, and
working capital. •; Office—6505 Wilshire Boulevard, Los
Angeles, Calif,
Underwriter—A. T. Brod & Co.y New
York City.

Electronics

used

struction and repayment of hank loans. Underwriter—To
be determined by competitive bidding. Probable bid¬

over-

announced that the company

was

non-convertible

new

reported that $25,000,000 of first mort¬
gage bonds will be sold by this utility, possibly in the
fourth quarter of this year. Proceeds — For new con¬

will issue
up to a maximum of 422,030 common shares, which are
to be used in connection with the recent acquisitions by
the issuer of M. F. Hickey & Co. Inc. of New York City
and Graham Brothers, Inc., of Los Angeles.

Corp. (5/2)
Jan. 29 filed 300,000 shares of common stock and war¬
rants for the purchase of an additional 100,000 shares/;
Price — To
be supplied by amendment. /Proceeds —
•

Florida
March

American Cement Co.

Office—841 FrelingAve., Newark 12, N. J. Underwriters—Arnold
& Co., Inc. and Street & Co., Inc., New York,

huysen

planned to supply a part of these
requirements. Office—Chicago, 111.

March 14 it

general corporate purposes.

—For

N.

66,666 shares of

stock (par 10 cents). Price—$3 per share. Proceeds

mon

1960 is

allVcapital

(letter of notification)

March 23
"L,

stock in

(5/2-13)

43

proximately $5,000,000 in short-term bank loans and to
help finance 1960 construction. Office — Boulevard of
the Allies, Pittsburgh, Pa.

Co.

improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and $45,000,000.
It is
anticipated that a substantial proportion of this money
will
be
forthcoming from depreciation and retained
earnings. In addition, the sale of $10,000,000 of preferred

period of 30 days. Thereafter the unsubscribed deben¬
tures and stock will be offered to the public. Proceeds—
For working capital. Office — 231 South Jefferson St.,
Chicago, 111. Underwriter—None.
WeCdotron

Steel

March 25 the company's annual report stated that capital

a

•

300,000 from 100,000 and to issue a
preferred series. Proceeds—To be

Prospective Offerings

offered for sale at $1,000; a total of 75,000 shares being
reserved for issuance upon exercise of the warrants. The

be

'

(1867)

-to

Continued

on

page

44

44

;/•
1'

H.,

The Commercial and Financial Chronicle

(1868)

Continued from page 43

Orange & Rockland Utilities, Inc.
April 18 it was stated that the company presently ex¬

Stuart & Co. Inc.; Lehman Broth¬
ers; Goldman, Sachs & Co., and The First Boston Corp.
(jointly); Eastman Dillon, Union Securities & Co.;
White, Weld & Co., and Shields & Co. (jointly); Blyth
& Co., Inc.; Equitable Securities Corp. Bids—Expected
to be received up to 11 a.m. New York Time on Sept. 27.

pects that such part of its construction program through

able bidders: Halsey,

i.-.'

'

ZiS

Co.

Electric Light & Power

Iowa

4*''
,iu
t

stated that bonds
would be sold in order to supplement money to be ob¬
tained from temporary bank loans, to acquire the $10,000,000 required to finance 1960 construction. Office—
March

!F;i

President Sutherland Dows

11

If
f

l ,n
J

)/;'/1

//jf
k)l

> mi
W ml

termined

bidders:

Probable

bidding.

competitive

by

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man
Brothers and Blyth & Co., Inc. (jointly); Kuhn,

M)j
'm.

Corp. and Wood,
Dillon, Union Se¬
curities & Co. and White, Weld & Co. (jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received on Oct. 18.
,
&

Loeb

!m)|
w

Mac

'Mi

Co.

&

Panel

March 23 it

S!

American Securities
(jointly); Eastman

Co.,

Struthers

of common stock.
Office—High Point, N. C. Underwriter—Bache & Co.,
New York City and Charlotte, N. C.

ing regarding the filing of an issue

i

0

|S|V

*
1'itf

I
fir

Enterprises Inc.
April 8 it was stated in the company's annual report
that it contemplates the issuance on or before March 31,
1961 of a bond issue in an aggregate amount not to exceed
$4,000,000. Proceeds —.To finance river transportation
equipment presently on order and expected to be
ordered.

Office—Cincinnati, Ohio.

•

Mohawk

Til/
'Hti* I
;} ii'i

t)

1

Jj't

I

Mi:

Co.

Insurance

March 16 it

m:

announced that the company expects to

was

register its first public offering in early May.
The
offering will consist of 75,000 common shares. Price —
To be supplied by amendment.
Proceeds—For expan¬
sion.
Office—198 Broadway, New York City.
Under¬
writer—R. F. Dowd &

Co., Inc., 38 Broadway, New York

/City.

Lines, Inc. (5/13)
April 18 it was reported that $10,000,000 of U. S. Gov¬
ernment insured merchant marine bonds, 5% SS Argen¬

•Hi'

'*i

tina

;p!i!
ii'j
111

series, due Nov. 1, 1978 are expected to be delivered
on
or
about May 13. Bonds will be callable beginning
May 1, 1965, at prices ranging from 105 down to par.
Price—Expected to be at par. Agents—Kuhn, Loeb &

V:;,
'

?'< If J

m.

IIP'),
fa

'

ll'i i

ill'1 iI
W j

;Hfl;

1

®!l

1

[ill*

Brothers.

Lehman

Co-, and

Nedick's Stores,
Nov.

Inc.
it was reported that the company is contem¬
the placing in registration of 17,000 shares of

12

plating

stock.

common

About

66%

the

of

issue

will

be

sold

for the company's account and
ance

the remaining 34% bal¬
will be sold for the account of a selling stockholder.

Underwriter—Van Alstyne, Noel & Co., New York.

Neptune Meter Co.
April 20 it was announced
company may

issue not

more

that

this New

City

York

than 133,334 shares of com¬

stock in connection with

proposed acquisition by
Neptune of Power Equipment Co. Stockholders of the

mon

W

I/if

'.ii{

a

Galion, Ohio, company will vote

6, 1960.

P

Iw

i

i

kif
,

,

'

fe j

iiiii;!

•

,

:■*

-

■

.

on

'■■■"•'

the acquisition May
■
•
•/
:'';>
,

/New Jersey Power & Light Company

(7/19)
Feb. 17 it was reported that this utility is planning the
sale of $5,000,000 of first mortgage bonds, due in 1990.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and Salomon Bros. & Hutzler
(jointly); Equitable Securities Corp.; First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Smith Inc.; Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received on July 19.
Northern
Feb.

000,000 of
year

Illinois

the

16

Gas

Co.

(7/13)

company's annual report stated that $120,-

new

capital will be needed to meet its five-

construction

April

program.

5

it

announced

was

that the company will sell $25,000,000 of first mortgage
bonds. Proceeds—To finance a portion of the 1960-1964
construction

by

'I!

bidding.

Probable

bidders:

A

Halsey

Stuart & Co. Inc. group. Bids—To be received

on

July 13.

Northwestern Bell Telephone Co. (6/7)
March 24 directors authorized the sale of a
$45,000,000
debenture

»i<

not

!,/'

?hi

Underwriter—To be determined

program.

competitive

i

fell

such
or

by

il'H;

dated

June

1,

1960, with

maturity

than 40 years. Proceeds—The funds

more

to meet

issue

are

in

needed

strong demand for service and to put into effect
improvements as direct customer dialing

service

long

distant

competitive

calls.

Underwriter—To

be

determined

bidding.
Probable
bidders:
Inc.; The First Boston Corp.;

Halsey,
Co.,
Morgan
Stanley & Co.; Eastman Dillon, Union Securities & Co.
Stuart

Wv
Hi,

S!.

&

Bids—Expected

to

be

opened

on

or

about

June 7.

M

March 30 it

m

an

Co...
was

reported that the company plans to file

undetermined

in' May.

Proceeds

amount

m
1v-

'

V

i

of

common

stock

sometime

For

expansion of business and
corporate purposes. Office — Norwalk, Conn.
—

general
Underwriter—Myron

j
;

at

Power

\




&

for the late Spring of this year, of an undeter¬
type. Underwriters — A. C. Allyn & Co., and
Snow, Sweeney & Co., both of New York City.

Light Co.

which will be announced at. a later date.
retire

March

.$20,000,000. of .unsecured promissory notes, to
on or prior to July 31, 1961.. The notes will be
to finance part of the issuer's 1960-61 construc¬

issued

expenditures, which

are expected
Office—Portland, Ore.'

$61,000,000.

to

total

A.

Lomasney

&

Co.; New

York.

directors

28

(8/9)

Telephone Co.
this

of

recommended

company

a

$100,000,000 debenture issue, subject to approval by
regulatory authorities. Proceeds—To finance an expan¬
sion and improvement program over the next five years.
Underwriter—To be determined by competitive bidding.

Proceeds—To

mature

tion'

Bell

Southwestern

announced that, the company

plans to issue
$20,000,000 of securities, the date and form of

least

reported that $11,000,000 in new financing

was

mined

bidders:

Probable

about

Panhandle Eastern Pipe Line

Co. /
April 19 it was reported that this company might sell
about $65,000,000 of debentures, possibly, in the third
quarter of this year. Underwriters — Merrill Lynch,
Pierce, Fenner & Smith Inc. and Peabody & Co., both

Halsey,

Co. Inc.; Morgan
be received on or

&

Stuart

Bids—Expected

Stanley & Co.
about Aug. 9.

to

/ •"//

„

System Meat Co.
March 18 it,was reported that

this

'

.

>

will file

company

$1,000,000 of common stock. Underwriter—Purvis
Co., Denver, Colo. Registration—Imminent. -

about
&

Tampa Electric Company
in this company's prospectus of its

Feb. 2 it was stated

amount to $39

1960 construction program will
million and there will be further financing

offering, that it contemplates some addi¬
tional permanent financing in 1960.
The exact nature
and amount of this financing has not been determined
but the company presently believes it will take the form

of

million

of senior securities.

Electric

Potomac

March 21 it

Power

stated in the company's annual report it

was

is anticipated that their
about

$15

of

an

yet undetermined

as

type.

Underwriter—To be determined by
Probable bidders: Halsey, Stuart &

competitive bidding.
Co., Inc.; First Bos¬
ton Corp.;
Dillon, Read & Co. and Johnston, Lemon
& Co.
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers and

Eastman Dillon & Union Securities

& Webster Securities

&

Feb.

Service

it

24

Electric

March

requirements.

that the

York

State

to issue

Commission

for

the

in

generating

Pipe Lines Ltd.

The

company

Canada

practical,

Mr.

the

to

E-ji

10
S ■'/

will continue to sell all se¬

maximum

extent

considered

/

said.

Kerr

Trans World Airlines,

Electric

Service

Public

$10,000,000 of

construc¬

.

curities

Corp.
••••* % •>-"
it was stated in the company's annual report
company has filed an application with the New

1

for

$50,000,000,

finance

April 13 James W. Kerr, President, announced that the
company planned to sell $13,000,000 of first mortgage
bonds. Proceeds—To meet the company's 1960 financial

,

&

new

Trans-Canada

short-term

Gas

about

Financial Advisor: Lehman Brothers.

auer.

stated

was

be

to

Proceeds—To

fall.

capacity.
Probable bidders:
(managing), Salomon Bros. & Hutz¬
ler; Eastman Dillon, Union Securities & Co., and Lazard
Freres & Co. Power Financing Officer: G. O. Wessenof

tion

in the company's annual report
borrowings will increase progressively
during 1960 until further permanent financing is under¬
taken later in the year.
The timing, type, and amount
of this financing has not-been determined.
^

that

expected

the

in

First Boston Corp.

Public Service Co. of New Hampshire
April 4 it

offering,

sometime

reported that this company is planning
type of financing of approximately

was

announced

20

public

Co.

Corp. (jointly).

undetermined

an

V

Valley Authority
that, pursuant to August, 1959, au¬
thorization from Congress to have $750,000,000 of rev¬
enue bonds outstanding at any one time, it plans its first

Gas Co.

&

%

Tennessee

Jan.

i

Public

z

recent

most

Co.

Inc.

April 8, it was announced that the company plans to offer
to its stockholders $100,000,000 of subordinated income
debentures with detachable common stock purchase war¬

right

rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA
with at least $100,000,000.
Proceeds — Together with

preferred stock. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
& Co., White Weld & Co. and Shields & Co. (jointly);
Kuhn, Loeb & Co.; Salomon Bros.,& Hutzler, Eastman
Dillon, Union Securities & Co., and Equitable Securities
Corp. (jointly); Blyth & Co., Inc.; The First Boston
Corp.
'
'
new

$190,000,000
proposed
private
placement
which
is
presently being worked on by this company's bankers,
will be used for expansion of the company's jet fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman Brothers, all of New York.

.

I'M
-%-y

„

San

Diego Gas & Electric Co.
April 8 it was reported that $25,000,000 of bonds is
expected to be sold/sometime in the third quarter of
this year. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: . Halsey, Stuart & Co.
Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fen¬
ner &
Smith (jointly); Lehman Brothers and Salomon
Bros. & Hutzler

Union Electric Co.
March
tive

of

in the

(jointly).

the

near

future.

Underwriter—T. Michael &

in

the

by Dudley Sanford, Execu¬
company

plans

offering

an

of $30,000,000 to^ $35,-.

range

Blvd., St. Louis, Mo. Offering—Expected
• V
1
; .
/

latter part of this year.

it Union Trust Co. of Maryland •
/
f
April 21 directors of this bank announced plans to boost
its capital stock by 100,000 shares to 500,000 shares, $10

Development Corp. Ltd.
.
April 20 it was reported that this corporation will issue
a
letter of notification covering an issue of common
in

securities

debt

000,000. Proceeds—To meet construction expenses. Office

Saucon

stock

it was announced

16

Vice-President, that the

—315 No* 12th

by offering for subscription to present holders one»
new
share for each four held.. A. special meeting .of
stockholders was called for May 25 to consider, the plan.
Price—To be set shortly before the offering.
Proceeds
—To increase capital and surplus.
Underwriter—Alex
par,

Office—Montreal, Canada.
Co., Garfield, N. J.

.

(Jos.)

Schlitz & Co.

March 11 it

was

reported that a secondary offering might
—

April

Pacific

it

Power Co.,

reported

South

March

Carolina

S.

25,

C.

McMeekin,

President,

informed

5

mortgage

it

Corp.

it

reported

that

sold

Previous issues have been

Edison

March

Co.

ask

will

competitively.

Proceeds—For

con¬

To

(9/13)
reported that approximately $25,000,000
bonds will be offered for sale. Under¬
be

determined

by

competitive

bidding.

bidders:

Bids—Expected to be received

on

Sept. 13.

\

(6/7)

30

it was reported that the
company plans to
sell $12,000,000 of refunding mortgage bonds.
Underwriter—To be determined by competitive bidding.

issue and

in

Probable

bidders;'Halsey, Stuart & Co* Inc.* Kidder,
Peabody & Co.; Eastman Dillon, Union Securities &c Co.;
Equitable Securities
Corp. Information, .Meeting
—

tional

$51,000,000 will be needed to complete its esti¬
mated $120,000,000 construction program for 1960. This
financing is dependent upon market condition, and will
probably be some type of debt'security.
•
<

company

Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler;
White, Weld & Co.; Eastman Dillon,
Union Securities
&'Co.; Stone & Webster Securities

the company's annual report
that besides the $30,900,000 issue of series L mortgage
bonds sold to underwriters in January, 1960, an addi¬
stated

this

Underwriter—To be determined

Washington Gas Light Co.

California
was

was

—

current construction program.

15

be

first

writers

this

an

placed privately.
Southern

■'■/

Light 'CoiK'A:'':

purposes.

Feb.

Probable

March

.'•,/.//■

Virginia Electric & Power Co.

Electric & Gas Co.

of plans to sell

tv:y.

Co.

undetermined principal amount
of bonds, the timing of which will be subject to market
conditions. Proceeds—To repay bank loans incurred for
paper

in

Offering—Expected
r-.t

(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Eastman Dillon, Union Securities & Co. and Smith,
Barney & Co. (jointly); Lehman Bros.; Bear, Stearns &

determined

be

was

.

by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Blyth & Co. and First Boston Corp. (jointly);
White, Weld & Co.; Stone & Webster Securities Corp.

issue and sell

—to

will

which

struction

that this public utility will
$3,000,000 of bonds, due 1990. Underwriter
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Stone & Webster
Securities Corp. and Dean Witter & Co. (jointly). Bids
—Expected to be received sometime in June.
was

it

12

•

stockholders at the annual meeting on May 16, to autho¬
rize 2,000,000 shares of $25 par preferred stock/part of

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

18

'•

Power &

Utah

.

Sierra

Sons, Baltimore, Md.

late May.

it Seaboard Air Line RR. (5/2)
/
Bids will be received up to 12 noon (EDT) on May 2
for the purchase from the Road of $6,720,000
of its
equipment trust certificates. Probable bidders: Halsey,

April

&

Brown

be made this summer. Underwriters
Merrill Lynch,
Pierce, Fenner & Smith Inc. and Harriman Ripley & Co.
Inc., both of New York City.

,

ii'i,
Norwalk

Feb. 5 it

remaining balance, from the proceeds of additional
short-term borrowings.
'
was

Office

is planned

any

Pacific

fc5

■

timing

Southern Union Gas Co.

ditions, of $10,000,000 of its first mortgage bonds, from
depreciation and retained earnings and, to the extent of

Rochester

Moore-McCormack

IIf!?
fill
'

—Birmingham, Ala.

stock, series E, 5% (par $100) will be financed
from the proceeds of sale in 1961, subject to market con¬

>
'

i

ferred

$85,000,000, sometime this year.
Underwriter—Merrill
Lynch, Pierce, Fenner & Smith Inc.

Bros. & Hutzler.

k

pany's 39,165 shares of its convertible cumulative pre¬

and Stone

it Missouri Pacific RR. (5/25)
April 27 it was reported that the Road plans to sell
$3,975,000 of its equipment trust certificates on May 25.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon

-

mortgage bonds and other debt securities.
The
of the issue or issues was not stated in the report.

reported that negotiations are still pend¬

Midland

r/?.

Southern Natural Gas Co.-

of New York.

Co.

was

Thursday, April 28, 1960

.

April 4 it was stated in the company's annual report that
the company expects to provide for the payment of
certain outstanding notes through the issuance of first

1962 and the refunding of $6,442,000 series B bonds ma¬
turing in 1961 as is not financed by the sale of the com¬

Jan. 29 it

it Louisville Gas & Electric Co. (10/18)
April 27 it was reported that this company plans the
issuance and sale of $16,000,000 of first mortgage bonds.
Proceeds—For
construction.
Underwriter—To be de¬

j

.

!

•"

Cedar Rapids, Iowa.

.

.

Scheduled
•

for

June

3

in

—Expected to be received

New
up

York

to 11:30

at

11

a./m.

a., m.^on

Bids

June

7.

U

fi
sflaL

Number 5946 i

191

Volume

ft

K-

/■

i

(1869)

The Commercial and Financial Chronicle

,.

1

NAIC Appoints
Information Dir.

Puerto Rico Steam Plant

Businessman's

'

'v

4

ill

BOOKSHELF

V\v|

7i

-v.- 7: w

7

7:/y

y::

77

7;: 77:7 7::

.7 y ::yy7 77 y; 7777 i-'Wt ^y'y' 7 ■
7;y : 77:77777;; 577.7; 777: 77777 -s:

777777.

::;7:7y

h-:

y

7:77777;

executive,

San Francisco

The

15

•

:

•

manage¬

investment

demand

for

investment

information

the

on

industry, a
demand that has increased great¬
ly over the years as more and
more people become interested in

re¬

;^v'.

;

»'

•

NAIC, said Mr. Rosapepe's ap¬
pointment was part of the Asso¬
ciation's
program to
meet' the

36, N. Y. (paper),

(quantity prices On

cents

180

companies, of
open-end
(mutual
fund)
and closed-end types.
George A.
Mooney, Executive Director of the

Inflation, Credit
Control, Interest Rates—Commit¬
tee for Economic Growth with¬
out
Inflation,
The
American
Bankers Association, 12 East 36th

quest) :

of

both

Banker Discusses

St., New York

-

NAIC, founded in 1941, is

ment

Pub¬

11, Calif.—cloth.*

of

its Director of Pub¬

as

Association

an

Clay Street,

lishing Company, 431

In¬
an¬

apopintment

Information.-;

lic

Automatic Data-Processing Sys¬
tems—Principles and Procedures
—Robert. H. Gregory and Richard

Horn—Wads worth

the

of

has

Joseph S. Rosapepe, former finan¬
cial editor
and
public relations

fy: , .! 7 SVJ ;■ y

...

Van

Companies

•

nounced

77 ;«;i

7; 7;?' ; 77 .::. yy 'yyV •: 7 77:7 - y: >;> 7:;?:7 ;f;: ;i:777 ;.y.
7 .:;7;W7 • .7.7: y7 77; 777y .w 7 7 777777 7: iM&if

Association

National

The

vestment
WUKttS?1 -i'

L.

45

Blindness—Ability, Not Disability
Maxine Wood — Public Affairs

company

this form of investment.

—

Pamphlets, 22 East 38th St., New
York 16, N. Y.—(paper)—250.
v

Blanchard With

Effects of Higher In¬

Causes and

Godfrey, Hamilton

Rates—Jules I. Bogen and
Nadler—Graduate School

terest

S.

Paul

Stephen L. Blanchard has become

Administration, New
York University, New York, N. Y.
(paper).
: :
of

Business

Ceylon—Fact
aid

Ceylon

to

associated with Godfrey, Hamil¬
ton, Magnus & Co., Inc., 101 Park

Avenue, New York City, as Man¬
ager of the Trading Department.
Mr. Blanchard was formerly with

sheet on economic
under Mutual Se¬

curity Program — Superintendent
of Documents, U. S. Government
C.

Riter

of Finance,
Graduate School of Business Ad¬
J.

Institute

Devine

Charles Dow and the Dow

-

Jr.

Bishop,

W.

George

pleton

Theory
—

Ap-

Century - Crofts, Inc., 35
St., New York 1, N. Y.

West 32nd

Plant

Steam

Coast

South

sity, New York, N. Y.

—

of

Puerto

the

Rico

Water Resources Authority, which recently

sold

Stuart

electric revenue bonds to an investment banking group headed by The First
& C6'.1J#ftd' B.' J.-' Van Ingen & Co. Inc. In the background, to the
plant of Commonwealth Oil Refining Company,-Inc. and, to the right, a plant of Union

issue of $20,000,000

an

New

Corporation, Ira Haupt

Boston

left, is

a

Carbide Corporation.

7^

c

Walnut

3924

4> Pa.

Steel's

facts book
industry

and

steel
and

42nd

Progress
on
—

New

150 East

York 17, N. Y.—

paper—500.
Classics
tions
of

in

Management — Selec¬
historic literature

management—Edited by

wood

F.

Har-

Merrill—American Man¬

agement Association, 1515 Broad¬
way, New York 36, N. Y.—cloth—
$9.00.
;
^
Conscience

Washington

of

a

Conservative

—

Printing Office,

D.

25,

—

Documents,

of

U. S. Government

It

Industrial Retirement Plans—1960

can

Wall

Company,1
York 15,

Trust
New

Study—Bankers

Street,

VU.■

N. Y.—paper. 4;..;,

Inflation, Unions and Wage Pol¬
icy—Chamber
of Commerce of
the United States, Washington 6,
D. C.
on

(paper), $1
request).

Information
of current

(quantity prices

Print

in

—

Catalogue

publications of Ameri¬

can

Bankers Association—Ameri¬

can

Bankers

ville, Ky.—(cloth)—$3.00.

36th

/

.

Econ¬
omies—A survey of Area Devel¬
opment Programs in the United
the

"Little"

States—Donald R. Gilmore—Com¬

Development,

mittee for Economic

Fifth

711

N.

Y.,

Avenue,

$3.00

New York 22,

(quantity prices on

requbk):.

Association, 12 East

Street, New York

16, N. Y.

—Available only to ABA

member

1657
N.

—-

to

Broadway,

New

York

19,

Y.—(paper).Appraises

Report of the
Bank—International Bank
Work

—

You

—

Growth

Association,
St.,
N.
W.,

Fourteenth

Hexafluoride:

Uranium

Base

George S. Allan; Special report by

—

New York 5,

11 Wall St.,

N. Y.—(paper).

Act

of

1954

as

amended

up

to

Economics,

major

including

centers,
International Airport.

Wolfson, Zalkind Opens
RIVER,

FALL
Zalkind

&

Co.

Mass.
has

—

Wolfson,

been

formed

with offices at 105 Bank Street to

in

engage
Partners

son

was

securities

a

are

Norman

and

Richard

business.
Wolfson

B.

Zalkind.

Mr.

Wolf¬

formerly with McDowell,

Dimond & Co.

Three With Dean Witter
,.v-.(Special to The Financial Chronicle)

Calif. —Rich¬

SAN FRANCISCO,
ard

L.

Arington, John H. Everett
and Joseph R. Hutchinson are now
affiliated with Dean Witter & Co.,
45

Corporation is engaging in an.in¬
vestment business from offices, in
the Tower
Petroleum Building.
Officers

William

are

W.

.

Montgomery

Street,

members

of the New York and Pacific Coast

Stock Exchanges.

DALLAS, Tex.—Tower Securities
;

•

Forms Cons. Planning

MARBLEHEAD, Mass. — Consoli¬
Petree,
dated
Planning
Company
has

President; Earle F. Lasseter, Vice- been formed with offices at 131
President, and J. T. Walker, Sec¬ Humphrey Street to engage in a
retary-Treasurer.
securities business.. Bernard Glazer

Now
business
offices

as

at

is sole proprietor.

Corporation

Russell & Saxe, Inc.

"■

Frank Drew Opens

is now doing

corporation from
Broad Street, New

a

50

(Special to The Financial Chronicle)

':r

PASADENA, Calif.—Frank Drew
Officers are Sigmund is conducting a securities business

York

June

ABC's of Modern
etc.—The Foundation
lication, P. O. Box 3705, Stanford, thority—Special Report—Govern¬
for
Economic
Education,
Inc.,
ment
Development
Bank
for
Calif., $20.
Irvington-on-H u d s o n,
N.
Y.
Puerto
Rico, San Juan, Puerto
Niagara-St.
Lawrence
Power
(paper), 50 cents.
Rico—(paper).
r
^
;
Projects—Progress report—Power
Garden Safety—Andrew S. Wing
Authority of the State of New Radio Isotopes in Science and In¬
—Garden Blue Book,
13 Laight
York, Albany, N. Y. (paper).
dustry—Special report of the U. S.
St., New York 13, N. Y.—(paper).
Atomic Energy Commission—Su¬
New York State Bridge Authority
Government Securities Market — —1959 Annual Report—New York perintendent of Dotumehts,' Gov¬
Treasury-Federal" Reserve Study State Bridge Authority, Albany, ernment Printing Office, Wash¬
—in three parts (Part I: Report N. Y.
ington 25, D.- C.—(paper), $1.25.
(paper).
Four Freedoms;

the dis¬

serves

at all the

transportation

Form Tower Securities

City.
30, 1960" — Economic De¬ Saxe, President and Treasurer,
velopment
Administration,
666; and Russell Safferson, Vice-Presi¬
Medical -Fee
G u i d e—Including
Fifth Avenue, New York, N. Y., dent and Secretary.
■
tabulation of Workmen's Compen¬
Dept. PR.
,
sation, Medicare and Blue Shield
With McDonnell & Co.
Fees—Medical
Fee Guide Pub¬ Puerto Rico Water Resources Au¬

York Stock Exchange,

It

traveler

tressed

—

for

Freeman—April 1960 issue—Con¬
taining
articles
on
Socialized
Medicine;
Mid-Income Housing;
Scientific Free Enterprise; Tricky

far from home.

Charges, Special Charges, Specifi¬
cations and Packaging — U. S.

folio

Inflation

Committee

—

the

World
Coopers & Lybrand Inc. on new
and for Reconstruction and Develop¬
tax developments in Puerto Rico;
Economic
ment,
1818
H
Street,
N. W., 1960 edition of "What You Should
Growth
without
Inflation,
The Washington 25, D. C. (paper).
;
Know
About
Taxes
in PuertoAmerican Bankers Association, 12
Rico" by Puerto Rico Treasury
East 36th St., New York 16, N. Y. Marketing Methods for Your
and
full text of
Block of Stock
An Investment Department;
(paper), 15 cents (quantity prices
"Puerto Rico Industrial Incentives
Manager's Handbook >— The New
on request).

Economic

Briefs

Society of New
a
non-sectarian, social
providing immediate, ef¬
fective help to people alone and
agency

Petroleum

.

at

Unionism

Atomic Energy Commission,
Tulsa Case
Washington 25, D. C.
Institute,1271
Avenue
of
the
Americas, Working with People: Examples
of U. S. Technical Cooperation—
New York 20, N. Y. (paper).
;
Superintendent
of
Documents,
Proper
Monetary
and Banking U. S. Government Printing Office,
System for the United States —
Washington 25, D. C. (paper), 150.
Edited by James Washington Bell
World Trade and the Dynamic Los
and
Walter
Earl
Spahr—-The
Angeles Metropolitan Area—Rob¬
Roland
Press
Co., New York,
ert R. Dockson—Union Bank, Los
N. Y. (cloth).
Angeles, Calif.—(paper).
Puerto Rico
Information port¬

Press

—American

—

Loans

Classical

<

Aid

is

York

What Washington, D. C. (paper), $1.00
(quantity prices on request).

Khrushchev—Ameri¬
Committee
for «Liberation,

Means

including
pamphlets
on
"What Happens When Exemptions
Let's Take Stock: An Inside Look
End: Retrospect and Prospect in
at
Wall Street—Don G. Camp¬ Puerto Rico"
by Milton C. Taylor;
bell
Bobbs
Merrill
Company, "Tax
Aspects of Operations under
Inc., Indianapolis 6, Ind. (cloth), ,thq Puerto .Rican, Exemption, Pro-,
$2.50,
.
gram" by Harry J. Rudick and
*

banks.

Reappraised:
From
to Union Es¬

Unionism

1012

York, N. Y.—(paper).

(paper), "Peaceful Co-Existence!"

C.

Goldwater — Victor Pub¬
lishing Company, Inc., SheperdsBarry

Developing

Council,
99 Chicago 1, 111. — (cloth), — $5.00
Avenue, New York 16, N. Y.J ($3.00 each for five or more).
Development

ber Banks -— 1959 — Federal Re- '- tablishment — Goetz
serve
Bank of New York, New American Enterprise

$1.75.

16

the

from

land
Park

Procurement

Defense

on

Superintendent
—

the iron
American

Steel Institute,

St.,

Bank,

Inc., Impact of Defense Procurement— Operating Ratios, Earnings and
Street, Philadelphia Hearings before the Subcommit¬ Expenses of Second District Mem¬
tee

Charting

Iron

(paper)—Federal Reserve
Washington, D. C.

Underwriters,

■,

Graphic

Travelers

Examination

Liability

and

York.

New

Questions
&
Composite Answers, * 1959 —
American Institute for Property

a member of the
Stock Exchange and

Scott, Jr.,

York

Jacquelin, has been elected Presi¬
dent of Travelers Aid Society of

Property Casualty Un¬

derwriter

7

partner in the firm of Carlisle &

1

•.•••••• *

(cloth), $6.00
Chartered

&

Of Travelers Aid

York Univer¬

New

ministration,

Schwabacher

and

Co.

Stuart Scott Pres.

Dollar—C.~

Changed Status of the

&

Co.

D.

Washington,

Office,
(paper), 10c.

Printing

offices

from

He

Avenue.

Mutual

at

639

was

North

Lake

formerly

with

Distributors, Inc.

In Securities

Business

(Special to The Financial Chronicle)

DENVER,
Woulfe

is

McDonnell

Colo.
now

&

—

Richard

associated

Co.,

Inc.,

.

H.

with

Tower

Bldg. He was formerly with Bosworth, Sullivan & Co.

Nicholas Freund is engaging in a
securities business from offices at
640 Fifth
under

Avenue, New York City

the firm

name

of Planned

Financial Services.

'

Tucker, Anthony Adds

Form Beacon Associates

(Special to The financial Chronicle)

Martin Ehrlich and Robert Corso

.

Organized Ex¬
change or a Dealer Market?; Part
II: Factual Review for 1958; Part
on

III:

Consultations;

Supplementary




Studies)

—

Northern Ireland, A new

for Industrial

Horizon

Development—U. S.

Representative, The Northern Ire¬

Loan Annals 1959—
States Savings and Loan

Savings and
United

League, 221

North La Salle Street,

BOSTON,

Mass.

Weld has been

of Tucker,
74

State

—

Edward

W.

added to the staff

Anthony & R. L. Day,
I

Street.

are

engaging in

ness

from

a

offices

securities busi¬
11 East 44th

at

Street, New York City under the
name of Beacon Associates.

firm

46

(1870)

The Commercial and Financial Chronicle

Indications of Current

The

following statistical tabulations

latest week

Business Activity

week
Latest

AMERICAN

IRON

STEEL

AND

Equivalent to—
ingots and castings

Crude
42

PETROLEUM

oil

and

Week

(net tons)

Month

Year

Week

Ago

Ago

Apr.

30

£79.4

*78.5

88.7

Apr.

30

§2,261,000

*2,238,000

2,527,000

92.8

each)
x
stills—daily average
Gasoline output
(bbls.)
Kerosene output
(bbls.)

(bbls.

2,627,000

(bbls.)

Apr.

15

Apr.

15

7,031,760

7,028,410

7,116,010

7,133,025

117,898,000

8,035,000

7,857,000

7,856,000

15

28,472,000

28,680,000

27,712,000

27,491,000

15

2,395,000

2,755,000

2,511,000

1,936,000

Apr.

15

12,249,000

12,638,000

(bbls.)
Apr. 15
bulk terminals, in transit, In pipe lines—
gasoline (bbls.) at
Apr. 15
Kerosene (bbls.) at—
L
Apr. 15
Distillate fuel oil (bbls.) at
Apr. 15

12,574,000

12,833,000

6,761,000

6,913,000

7,025,000

6,410,000

224,797,000

224,995,000

224,464,000

212,742,000

18,853,000

18,221,000

18,784,000

19,846,000

oil

Residual fuel

—.—,

(bbls.)

output

oil output

Stocks at refineries,

Finished

and

unfinished

—

76,378,000

74,419,000

82,442,000

81,518,000

Apr.

15

39,091,000

39,373,000

40,991,000

56,430,000

freight loaded (number of cars)
Apr.
Revenue freight received from connections (no. of
cars)— Apr.

16

622,635

598,384

581,477

634,848

16

552,553

549,252

552,600

575,645

Residual fuel oil
ASSOCIATION

OF

(bbls.) at

AMERICAN

CIVIL

ENGINEERING

CONSTRUCTION

Shipments

U.

Private

Public

construction—
construction

State

and

—-

—

„—

municipal

$758,200,000

$397,800,000

$453,500,000

Apr. 21

529,600,000

171,400,000

240,100,000

141,200,000

Apr. 21
Apr. 21

228,600,000

226,400,000

213,400,000

173,100,000

200,600,000

196,200,000

175,100,000

126,600,000

28,000,000
COAL

OUTPUT

Bituminous

(U.

coal

S.

BUREAU

and

lignite (tons)
Pennsylvania anthracite (tons)—
DEPARTMENT

STORE

ELECTRIC

Electric output
FAILURES

AVERAGE

=

100

Refined

AGE

COMPOSITE

Pig iron

INDUSTRIAL)

AND

DUN

—

METAL

PRICES

Electrolytic

ton)

gross

Export

(New
(St.

tZinc
Zinc

(E.

M.

&

York)

J.

388,000

363,000

129

13,263,000

13,951,000

21

283

308

286

300

Apr.

19

6.196c

6.196c

6.196c

6.196c
$66.41

Apr.

19

$66.41

$66.41

$66.41

19

$33.50

$33.50

$33.33

$34.83

Apr.

20

32.600C

32.600c

32.600c

31.200c

at
at—

31.975c

31.725c

U.

S.

PRICES

30.475c

20

12.000c

12.000c

12.000c

11.155c

20

31.800c

11.800c

11.800c

10.820c

Apr.

20

13 500c

13.500c

13.500c

11.500c

Apr.

20

13.000c

13.000c

13.000c

11.000c

Apr.

20

26.000c

26.000c

26.000c

.Apr.

20

98.875c

99.250c

100.125c

exchange"

Based

on

Retail

Total

24.700c

Aaa

Apr. 26

89.51

89.51

91.77

Baa

_

Railroad

Public

Group

;

Utilities

Industrials

Group

Group

Apr. 26

79.60

Apr. 26

82.52

82.77

82.52

Apr. 26

85.85

86.11

85.72

Apr. 26

87.05

87.32

87.59

79.72

90.77
-

88.81

-

79.84

83.66
-

,

Total

90.20

4.22

4.25

Average corporate

Apr. 26

4.77

4.76

Aaa

Apr. 26

4.45

4.45

Aa

Apr. 26

4.61

A

.

Baa

Railroad
Public

Group

Group
Group

MOODY'S COMMODITY INDEX—
NATIONAL PAPERBOARD
Orders received

(tons)

Percentage

of

5.21

(tons)

-

3.97
4.77

4.51

4.45

4.29

4.89

COMMERCIAL

4.59

ERAL

4.96

4.98

4.70

4.73

4.54

4.59

4.40

378.7

381.2

378.2

As

391.7

Crude

299,289

302,307

287,889

Refined

324,743

316,815

320,721

323,387

Deliveries

at end of period

16

Apr. 16

94

429,286

450,330

441,526

448,740

110.36

110.71

110.72

110.19

94

*

In

95

1949

AVERAGE=100

ROUND-LOT

of

Apr.

—_.

TRANSACTIONS

FOR

ACCOUNT

22

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
of specialists in stocks in which registered—

purchases

Short

Other

2,529,710

2,505,290

Apr.

1

317,230

396,200

381,580

394,040

1,706,740

2,126,710

2,074,590

initiated

transactions initiated

on

sales

Other

sales

Total

2,508,290

271,370

331,940

38,140

44,600

395,680
49,900

261,370

270,130

Apr. ' 1

299,510

Apr.

703,440

314,730
685,215

730,305

669,645

98,170

126,450

102,810

sales

EXCHANGE
Odd-lot

sales
of

Number

Dollar

—

by

AND

SPECIALISTS

SECURITIES

dealers

ON

EXCHANGE

(customers'

N.

Y.

Customers'

Dollar

short sales-

633,399

Apr.

2,802,050

3;263,655

3,655,695

3,556,345

Apr.

453,540

567,250

534,290

497,270

Unadjusted

Apr.

2,261,772

2,570,804

3,267,180

3,078,209
3,545,479

INTERSTATE

other sales.

Round-lot sales
Number

1,468,371

1,519,716

2,000,156

$73,033,522

$97,087,182

1,314,930

1,298,812

1,648,132

1,629,361

11,862

17,396

6,767

1,630,736
$79,320,887

1,622,594
$84,533,142

10,595

.Apr.

,

1,304,335

1,286,950

.Apr.

$66,261,004

$61,557,659

by dealers—

shares—Total sales.

of

.Apr.

435,070

435~070

Apr,

sales

Apr.

388,690

348,560

419~270

Apr.

525,990

587,670

716,730

dealers— Number of shares

606,790

TOTAL ROUND-LOT

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

Total

OF

MEMBERS

sales

Apr.

1

573,180

709,660

sales

Apr.

l

11,949,250

13,341,240

Apr.

1

12,522,430

14,050,900

LABOR—(1947-49

=

100):

—

All commodities other than farm

•Revised
of Jan.

figure.

1, I960

^Includes
as

120.0

120.1

120.1

119.9

91.2

*91.2

90.9

Apr. 19

106.8

92.5

*106.7

107.2

Apr. 19

96.1

*95.6

96.8

Apr. 19

128.6

102.3

128.7

128.7

128.1

107.5

966,000 barrels of foreign crude runs.
IBased on new annual capacity of
148,570,970 tons
against Jan. 1, 1959 basis of 147,633,670 tons.
tNumber of orders not reported since introduction
of
$Prime Western Zinc sold on delivered basis at centers where
freight from East St. Louis exceeds

Monthly Investment Plan,
one-half cent a pound.




and foods

end

of

period

6

33,917

-

v '

$718,000

$883,000

*98,527

,117,530

:

129,758

105,417

140,928

122,752

111,851

124,220

61,598

64,007

•:

(tons
.

___

82,952

..

HOURS—WEEKLY
S.

DEPT.

OF

March:
;

.

$90.68

_

*$91.14

98.49

—

—

$89.24

,

*98.98

97.10

79.95

79.00

-

79.52

.

—

;

_

,39.6

*39.8

40.2

*40.4

40.8

38.6

39.0

39.5

$2.22

40.2

A-

*$2.29

2.45

2.45

2.38

2.06 "*•

2.05

2.00

$2.29
'

___—

THE

FEDERAL

=

of

(in

personal
and

Mar.:

OF

at

middle

Service

labor

'

61.7

'___
total
«

i

of

persons

employees'

•___:

contribution

for

social

surance

Total

nonagricultural
EARNINGS
OF

CLASS

AMERICAN

Total

operating

revenues—

Total

operating

expenses—

Taxes

Net
Net

—.

•

"

*

63.9

I

ROADS

375.4

354.0
106.3

(

88.7

89.0

69.8

*69.7

66.6

*39.0

36.4

:

.'

83.8

44.8

*47.4

9.8

10.4

35.4

*35.4'

34.0

10.3

*10.7

12.9

•
.

12.2

,

12.0

13.6

13.6

12.8

24.6

24.3

21-.6

27.7

*27.3

26.6

in¬

'

'

income"—II—"I"

February:

112.7

12.2

I__H_I
.1—1—1 I
__1
II— J

income—

payments

393.0
268.8

112.1.

10.4

■

professional..

interest

60.9

393.5

48.1

income.

income

;! I"

269.0

39.o'

Farm
Rental

'

'

of

;

and

105
'

'

receipts,

"

Other

104

•

COMMERCE)—Month

billions):

industries

Business

111

STATES

income—-

salary

110

110

)

100)__——x

=

109

COMMISSION—

Employment

(1947-49

RESERVE

1(M)—Month

_.

COMMERCE

March

of

—Apr. 19

165,987
121,460
V

117,161

u

pounds)—

goods

Railway

RAILROAD

Apr. 19

...—

2,000

-

OF

SOCIATION

foods

:

,

A

U. S. DEPT. OF

commodities
Farm products

100,571

^

Commodity producing industriesManufacturing only
Distributing industries
___x

580,590

15,961,310
16,541,900

,

All

Meats

735,370
16,091,000
16,826,370

-

Commodity Group—

Processed

of
Total

Less

Short

PRICES, NEW SERIES

of

Transfer

Other

WHOLESALE

Index

Personal

round-lefr sales—

Total sales

100,577

81,335

$805,000

_

-

Dividends

(SHARES):

I.:!

•.

YORK—

Government

419,270

sales

FOR ACCOUNT

ERNORS

Wage

348,560

Short

104,595
tons)

pounds)—

at

of

Seasonally adjusted

1,809,526
$100,603,462

388,690

Other

Round-lot purchases by

stocks

(DEPARTMENT

$74,846,990

18,176
;

March:

PERSONAL INCOME IN THE UNITED

.Apr.

14,669

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

March

»

17,437

goods

719,229

.Apr.

value

of

goods

Nondurable

697,230

Apr.

$65,051,000

manufacturing

800,040

Apr.

$60,945,000

85,830

COMMISSION

shares

Customers'

387,620

purchases)—t

value

NEW

pounds)

Hourly earnings—
All
manufacturing

STOCK

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales.

of

goods
Nondurable goods

720,384

3,801,470

5,304.000

$70,193,000

Durable
.

593,934

3,138,054

20,348,000
11,589,000

2,501,000

.

628,382

2,715,312

OF

Hours—

530,212

Apr.

(net

omitted)-—

2,000

SYSTEM—1947-49

—

DEALERS

2,000
of

goods

Apr.
transactions for account of members—

16,687,000
10,770,000

7,809,000

9,358

month

ESTIMATE—U.

Nondurable

17,400
370,220

14,116,000
.19,427,000

OUTSTANDING—FED¬

pounds)—

Durable

381,410

443,240
493,140

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

.

5,252,000

13,851

Weekly earnings—
All
manufacturing

2,468,630

1,263
$22,558,000

,

in U. S. A.—

(tons

copper

Durable

purchases

Short

2,102,940

the floor—

sales

round-lot

1,787,420

1,214

9,460,000

\

fabricators—

A.

2,000

All

purchases

Total

1,470,190

Apr.
Apr.

sales

Total

Apr.

off the floor-

purchases.

Total

Total

2,246,500

sales

transactions

Total

1,827,240

sales

Total

Other

1

185
316

$21,527,000

1

MINES)—

America

(000's

of

-(tons

S.

625

103

BRADSTREET,

'

BANK

31

LABOR—Month

-Apr.

sales

Other

Total

,

609

195

120

IN THE

(NEW)

OF

Central

PAPER

to

126

1,335

liabilities—

&

210

111

241

9,671,000

__

196

$19,170,000

__

—

America (net tons)

AVERAGE

Transactions
Total

—___

,

607

,

!

,

224

.

..

.

145

„—

—

FACTORY EARNINGS AND

MEM¬

OF

U.

Refined

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

253,314,000
1,053,747,000

___

_,

,

95

229,105,000

(net tons)

(tons

299,606

16

111,173,000

Pennsylvania anthracite (net

Copper production

16

70,099,000

192,574,000

1,239,700,000

—;—

(BUREAU

11,795,000

122,070,000

244,399,000

__

of" March—

March

Apr,

.

BRADSTREET,

number

INSTITUTE—For

Apr.
Apr.

&

329,239,000

9,120,000

■

_

RESERVE

of

$278,127,000

336,485,000

—$1,365,798,000

—_

;

liabilities

South

COPPER

$350,346,000
*

between

_

_

liabilities.

and

4.50

4.61

35,487

413,085 ,000

__

North

Europe

4.83

4.72

shipped

,

tons)
To

5.20

4.63

and

of February:

4.36

Apr. 26

46,323

200,924 ,000

STATES—DUN

4.58

Apr. 26

2,797

42,131

$363,561 ,000

March:

service

To

To

5,052

v

,

*

_—

U. S. exports of

4.03

ASSOCIATION:

activity

Unfilled orders

4.80

5.22

Apr. 26

(tons)

Production

4.81

Apr. 26

4.98

.

4.57

Apr. 26
Apr. 26

——

Utilities

Industrials

,

*

—

number

EXPORTS

Month

3,411

—_——_L___—Lx_

INCORPORATIONS

UNITED

..

Apr. 26

of

INC.—Month
COAL

J,

liabilities

BUSINESS

87.59
88.27

-

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds

10,792

1,959
5,950

BANK
.

-

liabilities

Commercial

87.72

350,539,000
35,015,000

'

Construction

84.43

28,542,000

133,746 ,000

liabilities

84.33

87.86

341,671,000

18,105,000

credits—

—

number

Wholesale

88.67

84.81

330,826,000

10,083 ,000

number

Manufacturers'

J102.125C

311

_x—

stored

service

85.20

87.22

__

number

Construction
Commercial

85.65

84.68

29,125,000

OUT¬

RESERVE

March
x:

number

85.33

Apr. 26

of

FAILURES—DUN

Manufacturing

83.32

Apr. 26

37,000

30,713,000

28,664,000
36,237,000

:

—

85.20

Aa

as

goods

83.57

,

17,000
31,879,000

____L__

ACCEPTANCES

warehouse

Wholesale

26,660,000

16,000
28,610,000

shipments..

Apr. 26

89.51

250,623,000
223,926,000

29,139,000

—

.

j

Apr. 26

0'

252,125,000
222,969,000

29,242,000

undelivered

and

—

Average corporate

___

224,140,000

cars——

YORK—As

Dollar,

Retail

Government Bonds

253,398,000

INSTITUTE—

order

on

Total

28.550c

Apr.

Apr.

AVERAGES:

DAILY

6,524,374

export

delivered————

DOLLAR

NEW

Domestic

and
:

month)

INC.—Month

—

(primary pig. 99.5% )
(New York) at

BOND

CAR

foreign countries

Apr..

domestic

(barrels)

freight

cars
cars

Imports

12,538,000

Apr.

20

9,602,938

8,429,696

—L__

(barrels);

STANDING—FEDERAL

132

■

•

^

MOODY'S

of

BANKERS'

OF

13,213,000

*12,049,404

7,583,033

March:
new

of

Domestic

Apr.

at

(East St. Louis)
tin

260,000

of

for

BUSINESS

—

at

(delivered)

Straits

354,000

QUOTATIONS):

at

Louis)

Aluminum

16

copper—

refinery at
refinery at

Lead

Apr.

stocks

freight

Backlog

imports

RAILWAY

Month

Orders
New

PRICES:

Domestic
Lead

8,152,000

23

11,119,000

(barrels of 42 gal¬

output

consumption
all

AMERICAN

&

ton).

gross

(per

8,720,000

Apr.

(per lb.)

(per

Scrap steel

oil

Exports

(in 000 kwh.)

(COMMERCIAL

Finished steel

8,310,000

153

175,108

gasoline output

Indicated

INSTITUTE:

BRADSTREET, INC
IRON

8,775,000

156

156,700

111,638

INSTITUTE—Month

production

product

..(end

16

16

162,996

127,532

—

(barrels )—__
(barrels)——!—
Benzol output (barrels)-——
;_
Crude oil imports (barrels).

46,500,000

Apr.

Apr.

164,023

tons)—

(net

————

PETROLEUM

Natural

$314,300,000

38,300,000

Ago

of Jan.

end

—-———

INDEX—FEDERAL RESERVE

SALES

SYSTEM—1947-49
EDISON

30,200,000

Year

Month

INSTITUTE:

products

February

lons each)
Domestic crude

MINES):

OF

STEEL

—__

Apr. 21

Previous

Month

of January:

Decrease

construction

S.

(short tons)

AND

steel

of

of

Total domestic

NEWS-RECORD:
Total

IRON

ENGINEERING

—

of that date:

Latest

primary aluminum in the U. S.
tons)—Month of January-

aluminum

AMERICAN

as

of

short

Month

either for the

are

MINES):

OF

Steel ingots and steel for castings, produced
(net tons).—Month of February————_

RAILROADS:

Revenue

production and other figures for the

cover

(BUREAU

AMERICAN

Apr.

fuel

(in

of

Apr.

Distillate

ALUMINUM

Stocks of

output—daily average

to

runs

Previous

Thursday, April 28, 1960

.

that date, or, in cases of quotations, are

on

INSTITUTE:

condensate

gallons

Crude

month ended

.

Dates shown in first column

Production

Steel

AMERICAN

INSTITUTE:

or

month available.

or

.

(

9.7

9.7

8.2

379.1

*378.2

358.5

$774,222,055
620,653,027
83,795,454
42,245,677

$789,265,270

28,000,000

30,000,000

$748,129,409
609,210,746
74,185,789
39,653,984
22,000,000

$43,081,500

$16,46"4_,300

$62,216,800

.

(AS¬

RRs.)—Month
1 '
^

III

■

railway operating income" before"
charges
income after
charges (estimated)

633,867,856
84,362,913

43,566,271

TREASURY MARKET
TRANSACTIONS IN DIRECT
AND
GUARANTEED
SECURITIES
OF

Net

U.

S.

A.—Month of March:

sales

Net purchases

IIIIII!

Volume

191

Number 5946

.

.

.

The Commercial and

Financial Chronicle

(1871)

$75 Million Bonds
ic

Of New York City

NSTA

ie

NOTES Publicly Offered

k •
*

•

underwriting account man¬
aged by The
Chase Manhattan
Bank merged with a group headed
by The First National City Bank
SECURITY TRADERS ASSOCIATION OF LOS ANGELES

of New York

108

338

The

chase

held

followed

by

big

a

bowling

gala dinner

a

Sheraton-West

on

party

April

21

for School Construction and Vari¬

April 22 at the

municipal

ous

plus

par,

Ralph M.

.t.

Co.,
300
000

President

Master

Dahl, Evans MacCormack
the

of

Association

of Ceremonies

for

the

served

setting

as

OOO

The

all

association

set for

has

their

OOO

OOO

plans

at

planning to attend

iri their reservations

are

early

as

as

a

797

Other

asked to send
possible.

RaiPh m. Dahl

FLORIDA SECURITY DEALERS ASSOCIATION
The

487

Board

of

Governors

recent

a

,

.

to

members

the

of

Bank

Co.;

Bankers

been

formed

offices

with

185
316

263
000

at

securities

en¬

a

gage in a securities business.

Of¬

at

New

Bear, Stearns & Co.; Continen¬
Co.

of

Trust

Trust

Co.;

Trust Co.; Morgan
Guaranty Trust Co. of New York;

Lehman
& Co.;

Equities

business

from

Brothers; Smith, Barney
Blyth & Co., Inc.; The First

Chicago;

Harris

Trust

Phelps,

and

Fenn

Inc.,

H.

with

E.

L.

Wolf

Associates,

The

Directors

Harvester

r\ five

Co., Inc.; Blair &
and

NOTICES

DIVIDEND

NOTICES

quarterly dividend of Ninety

(90$)
been

cents

outstanding

declared, payalde June 1, 1960

JOHN F. SHANKLIN

Secretary and Treasurer
union

carbide

corporation

busi¬

May 5, 1960.

on

J. EGER, Secretary

I

|

($.45)

cents

1960;;'vNf'

■

New York, April 26, I960.

(70tf)

per

the Common Stock without par

■

Railway Company has

today been declared out of the surplus
of

p

net

fiscal

profits

ended

year

payable

Cities Service

of

on

Company

the

December

June

1959^

to

stock¬

regular quarterly divi-

dend of 50

cents

per

Common

Stock of

share

Natural

Gas Company, payJune
14,
1960 to

able

■

stockholders of record

!

close of business

£

1960.

on

May

13,

1960.

460

•

■

5

W.S. TARVER,

j

Secretary

Dated: April 23,

;

196CF

CALIFORNIA-PACIFIC

Dividend, Notice

UTILITIES COMPANY

ciliU
20, I960, declared

a

of Cities Service

Company

on

quarterly dividend of sixty cents ($.60)

530

share

928

holders of record at the close of business May 20, 1900.

on

Common Stock,

its

April
per

payable June 6, 1960, to stock¬

franklin

220

k.

foster,

Secretary

Sinclair

Quarterly dividends payable June 15
to

shareholders

of

have been declared at the
rates per

June

record

following

.

.

.

25tf

.

25tf

.

27tf

On

5V2% Convertible Preferred

21lM

lar

Common

221/2«*

.

...

.

.

D.

J. Ley,

VICE-PRES. aTREAS.

1.00

April 11, 1960

-

■

mi

regu¬

a

Southern

record at the close of busi¬

219TH COMMON DIVIDEND

10.8

April 20, 1960

quarterly dividend of 75
cents per share was declared
on
the Corporation's Com¬
mon
Stock, payable June
10, 1960 to stockholders of

>.24

MO

No. 118

DIVIDEND

5.40% Convertible Preferred

.

STOCK

COMMON

.

>

jmf

1,

share:

5% Preferred

5% Convertible Preferred

952

A

19.5

ness on

A regular dividend at the increased rate of Fifty-seven and
One-half Cents (571/2(0 per share has been declared upon

22

the

5.00

Company, which resulted from the two-for-one split which

new

Common

of

1.38

became effective

Stock

The

American

April 7, 1960. The dividend is payable
1, 1960, to stockholders of record at the

close of business

May 12, 1960, and checks will be mailed.

on

MEETING

Tobacco

June

in cash

©

A, T. Co.

May 10, 1960.

Edison

SINCLAIR

NOTICE

OIL

on

MFG. co.

CUMULATIVE PREFERRED STOCK:

IIOBERTSHAW-FULTON

Milwaukee, Wisconsin
>3.9

Notice of

ANNUAL MEETING OF STOCKHOLDERS

CONTROLS COMPANY

May 4,1960

NOTICE IS HEREBY GIVEN, that

>6.3

the Annual Meeting of stockholders of
ALLIS-CHALMERS MANUFAC¬

dividend of

TURING

per

14.8

9.8
14.0

.2-9
2.0

.2.8
11-.6
16.6

8.2
,8.5

1.
2.

To elect

a

To consider and transact any

Board

of

Directors
as

$0.34375

share has been de¬
the $25.00

on

value 5 H

per cent

Cumulative

Preferred

Stock,

payable

20,

1960

to

of

re¬

stockholders
cord

the

at

business

MR. CONTROLS

Con¬

vertible

June

other

has

close

June

of

10,

1960.

common

stock¬

holders entitled to notice of and to vote
409

at this annual

746

ment thereof.

meeting

or any

COMMON

fixed

the record date for

the determination of the

adjourn¬

A regular

STOCK

quarterly dividend of 37J-£c

share has been declared

Stock

payable

June

on

20,

the

By order of the Board of Director®
ARCHIE D. DENNIS,

1960

to

June 10, 1960.
The transfer books will not be closed.

JAMES A. Win
•'

April 13, 1960.

300

r

share;

26V2 cents

per

share;

4.78% SERIES
Dividend No.

297/s cents

10

per

share;

'4.88% SERIES
Dividend No. 50

30V2 cents

per

share.

The above dividends

are

pay¬

able May 31, I960, to

stock¬
holders of record May 5.
Checks will be mailed fro?n
the Company's office in Los
Angeles, May 31*
P. C.

stock¬

Secretary
Dated: March 17, 1960

per

per

Common

holders of record at the close of business

OOO




par

quarterly

ment thereof.

March 17, 1960,

984

regular

clared

Board of Directors;

business that may properly come
before the meeting br any adjourn¬

The

789

A

COMPANY, a Delaware
corporation
(hereinafter
called
the
"Company"), will be held at the general
offices of the Company, 1205 South 70th
Street, West Allis, Wisconsin, on Wed¬
nesday, May 4, i960, at 11:00 A.M.
(Central Daylight Time), for the fol¬
lowing purposes, or any thereof:
>

Dividend No. 41

25Vi cents

Dividend No. 18

PREFERRED STOCK

>4.0

16.4

4.08% SERIES

4.24% SERIES
Richmond, Ma.

r5.4

>6.6

following quarterly divi¬

dends:

President and Treasurer

13.8

authorized the payment of
the

to be held

Company

The Board of Directors has

New York 20, N. Y.

ALUS-CHALMERS

Harry L. Hilyard

California

DIVIDENDS

CORPORATION

600 Fifth Avenue

104
105

\
f
J

the

at

2

Directors

«

May 31,

on

r

Secretary.

987

of

:

holders of record at the close of business

J. J. MAHER,

Board

■

the :

on

Southern

£

the

31,

1960,

15,

for

A

| has been declared
■

on

:
■

NOTICE

A dividend of Seventy cents

•

Common Stock Dividend No. 85

■

■

DIVIDEND

j

Birmingham/ Alabama
:
S

Company

share

'

:

Railway

per

;

GAS !

NATURAL

COMPANY

value of Southern

The

to

the close of

at

business May 2, 1960.

one

payable June 1, 1960 to stockhold¬
of record at the close of

the

on

stockholders of record

the preferred stock,

on

share

per

capital stock of this Corporation has

Southern

W. J. ROSE, Secretary

April 27,

000

Co.,

Trust

CARBIDE

Company have declared

share

per

ness

the close of business May 9, 1960.

917

&

G.

A.

Co.

seventy-five cents ($1.75)

Common Stock

000

10.2

Co.;

Bank;

quarterly dividend No. 167 of
dollar and

share on the
Common Capital Stock of the Company,
issued and outstanding in the hands of the
publjc, has been declared payable June
10, i960, to the holders of record at

000

'

&

Wertheim

&

Equitable

International

of

A regular quarterly dividend of Forty-

v

000

»

Co.;

HARVESTER

COMPANY, Inc.

on

000

176

Co.;

Federation Bank

1 r

Pounds,

Treasurer; and Joseph P. Cardillo,
Vice-President and Secretary. All

DIVIDEND

Becker

Northern

Savings

&

offices

Inc.

Ralph

M.

SOUTHERN

201st Consecutive Cash Dividend

were

&

Hallgarten

1

President;

Rothenberg,

000

The

AMERICAN ELECTRIC

President, and
George Heller,
Secretary-Treasurer.
Both were
formerly with George, O'Neill &
Co., Inc. and Marron, Sloss & Co.,

Nathaniel

Bank;

Carl

UNION

ers

NOTICES~

POWER

are

Weeks;

Co.; Kidder, Peabody & Co.;

York

1500 Massachusetts Ave., N. W.
Officers
are
Barbara
J.
Black,

ficers

Co.;

Inc.;

WASHINGTON, D. C. —Atlantic
Equities Company is engaging in

225

Broadway, New York City, to

126

625

Form Atlantic

Rothenberg, Heller & Co. Inc. has

Co.;

&

tal Illinois National Bank & Trust

GERARD

Rothenberg, Heller

&

Co., Inc.; The

Loeb, Rhoades & Co.; Ladenburg,

A

Manufacturers

DIVIDEND

Form

Sachs

&

National

INTERNATIONAL

000

210

Goldman,

Kuhn, Loeb & Co.

offering

000

000

Hutzler;

Co.; Salomon Bros. &

COMPANY

000

000

&

maturity.

of

000

000

Hornblower

Dillon, Union Se-- Thalmann

curities

syndicate include:

Trust

of the Florida Security Dealers Asso¬
meeting scheduled the 1960 Annual Convention
of the association for Nov, 3 and 4 at the Key Biscayne Hotel,
Miami, Florida.
:

ciation at

H. Morton

being reoffered
from 2.65% to

are

yield

according

Chemical
792

Corp.; White, Weld &

Philadelphia

May 1, 1961 to 1990, inclu¬

prices to

3.90%,

3, 4 and 5 at the Riviera, Palm Springs.

Members

Fenner & Smith, Inc.; C. J. Devine
& Co.; Eastman

as

sive, the bonds

Spring Outing to be held

OOO

June

that

announced

of

W.

Brothers &

DIVIDEND NOTICES
Due

are

com¬

bid

a

Halsey, Stuart & Co., Inc.; Barr
Co.; R. W. Pressprich
Co.; The First National Bank of
Chicago; Merrill Lynch, Pierce,

Securities

Co.; Drexel & Co.

3.8561% to the city.

occasion.

000
000

submitted

nominal premium, for
3.90s, 3.80s and 3V2S,
net
interest
cost
of

a

the bonds

&

The

purposes.

bined account

Hotel.

374
■

pur¬

of

$75,000,000 City
of New York Serial Bonds, issued

Security Traders Association of Los An-

Angeles

April 27 to

on

issue

an

Corp.; Lazard Freres &
Co.; Harriman Ripley & Co., Inc.

&

An

700

Boston

47

Secrefary

April 21, 1960

HALE,

Treasurer

m
Financial Chronicle

The Commercial and

';j;S|

48

,.

be unrealistic. With secu-'
rity the primary goal of Amer¬

may

RECEPTION

ica, what can be- paid on the
debt, will depend on the inter¬

ROOM

CAPITAL

FROM THE NATION'S

headlines because they are mak¬

WASHINGTON, D. C.—Regard¬
less
of
whom the
Democrats
nominate at their Los Angeles

'ill

f;

the

a

House.

tial

breakfast

a

honor

time

in

final

morning

Executive

fact

the

-|!i |

of

46

that

that Ad'lai

thought
tion

them

will

Vice

oppose

President
Six-

-

the nomination.

Nixon for

«Jj

Sen¬
ate Majority Leader Lyndon B.
Johnson of Texas; 14 predicted

ijiil

it

teen

4f

John

Senator

be

m

there has been
and con speculation

F.

|f

the

Representative Bruce Alger, a
Republican
from
Dallas,
re¬
cently visited Mr. Nixon to pass

President's

Nixon

in

government

his

lieves in

one

believes

in

Limited Risk-Unlimited Profit
on

both

major

Market

Stock

dollar,

Transaction

{irofits
0 days)(possibly
thousands
dollars
in
is explained
in this of
clear,
simple

Ijt

He

dom.

different

for

the

bureau¬

licans

party

PUT and CAU

Kit-

certain

in

Understanding

•x*

ljW&'
;l'?r

already.

wants

a

leader he

f J..

cratic
by HERBERT FILER

the subject.

authority on

#1

he

of successful traders and pro¬
purchase
"buy"
and
"sell"

Thousands
fessionals

profits

"paper"

on

on

you

you

book

This

the stocks they own.

only $3.00.

And

B

you

and mail

can

examine

send

me

Herbert

t

Filer's

|

Under¬

examination.

I
I

nothing.
Otherwise I will pay you $3.00
plus the postage charge within 10 days as
payment In full.

I

Name.

I
r-l

I

I

City..

•

*

-

Zone.... State.

?' enclose check or money order for $3.00. Then

I




dedicated

the role of Fed¬

said

Alger

Mr.

directed

to

in

a

constitu¬

his

gained

he

though

even

*

he

strength

only

polled

,

28.7% of the total vote and ran
in the

third

ator Robert A. Taft with a gen¬

personal fervor, have now

pushed Senator Barry Goldwater
of

Arizona

their

to

the

spokesman.

Republican
State's
votes

has
14
as

forefront

The Arizona
already added

national
a

a

conven¬

favorite

candidate for President
as

as

as

son

well

.

In

sion

a

primary.

question and answer ses¬
the
American

before

of Newspaper Editors
meeting
in
Washington,
Mr.
Society

conservative
ters

himself

described

Nixon

in

as

a

economic

mat¬

believe

con¬

"I

because

servative

policies

provide

the

surest and best road to progress

for

the

majority
•American people."

handful of South Carolina

great

Vice

The

-

(Omaha, Neb.)

May 17-18, 1960

Nebraska Investment Bankers As¬

sociation annual Field Day.

Nashville
ciation

Security Traders Asso¬

Party;
cocktails
19 at Hillwood
Country Club; outing May 20 at
Bellemeade Country Club.

Spring

dinner

and

May

(Baltimore, Md.)

May 20, 1960

Baltimore Security Traders Asso¬
ciation annual spring outing
Maryland Country Club.

President

of

at

May 20, 1960 (Pittsburgh, Pa.)
Western

Pennsylvania
Bankers

Investment

Rolling

at

1960

May 28,

Group

of

Association

Club,

Rock

(Dallas, Texas)

Dallas

Security Dealers Associa¬
annual spring party at the

tion

Northwood

Club.

June

2-5,1960 (Ponte Vedra, Fla.)
Southern
Group of
Investment
Bankers Association meeting.
June

3-5,

1960

(Los

Angeles,

Calif.)
Traders Association of
Angeles spring party at the

Security
Los

Riviera, Palm Springs. J
June

Many rank and file Republi¬
who idolized the late Sen¬

tion

by his own voting

quoting
after

the

;

agreed

(Des Moines, Iowa)
Investment Bankers Silver

Iowa

Anniversary field day at the Wakonda
June

Club.

10, 1960

(Philadelphia, Pa.)

Investment Traders Association of
summer
outing at
Country Club, Radnor

Philadelphia
Overbrook

Township, Pa.

Attention Brokers and Dealers:

Botany Industries

Vice-

Indian Head Mills
Official Films

him, Mr. Alger restated his own
clear impressions of some points
the
Vice-President made, of
which he agreed
he'd

be

out with

a

to

come

lot of flatfooted pro¬

nouncements

Southeastern Pub. Serv.

(1) Politically,

foolish indeed

any and all is¬
opponent in the

Our New

Carl Marks

& r.o Tn<-

York telephone

number is

CAnal 6-3840

on

his

sues

until

race

is determined.

(2) He has

responsibility, as Vice-Presi¬
dent, to be a spokesman for the
Administration positions, at this
time. (3) The campaign against
the Democrat nominee, when

known, will permit

a

clear dif-

FOREIGN

SECURITIES SPECIALISTS

20 BROAD STREET

TEL: HANOVER 2-0050

•

NEW YORK 5, N. Y.
*

TELETYPE NY 1-971

='

9, 1960

the

talk^ with

his

a

postage. Check here if you prefer to J
I
we pay postage. Same moneyback guarantee.
|

I D

own

on

that

Bankers

Association.

TRADING MARKETS

or

If not convinced that it can pay for itself
many times over, I may return it and pay

...

by

primary in
opposition.

Some observers are of the opin¬
ion

cans

his

President

I

Address

_

a

no

was

of Gover¬

ents.

standing Put and Call Options for 10 days'
free

.

there

Nixon's Thinking:

CROWN Publishers, Dept. A-7,
Park Avenue South, New York 16, N. Y.

Please

..

Nixon in
im¬

considered

was

In

419

i

....

Mr.

by

showing

ballots for him in

Goldwater's Star Rises

demonstrated

record,"

this coupon today.

To your favorite bookseller,

m

en¬

inspire

his

Without
11

only to
action

Sulphur

Investment

Ligonier, Pa.

more

.

eral Government in our lives, as

letter

It can

it Free." Fill

and

convictions

help you make a fortune.

io.

sionals.

uine

stressing

sell

you

support among
conservative voters of the

courage

investment.

costs

up.

"Dick Nixon has

can

can

Demo-'*

the Board

of
the

of

nors

got

which

"

shows

too

minimum

how

to

the

country.

how they do it and
make maximum profits
It shows also
options on your own
stock to increase income, where and how
to buy and sell puts and calls, how to use
them
to make capital gains instead of
short-term profits, how to use options to
protect profits on your stocks, etc.
book

This

how

the

out

lose

would

.the

options (call and put) because they know
these options can
make big profits for
them
and
also
can
protect unrealized

!/f

from

a

pressive based on the fact that
more
than
341,000 voters cast

Party

sewed

vote

at Hotel Atlanta Biltmore.

popularity

The

Morris,

Sfenate Internal Security Sub¬
committee, the Vice-President
cannot afford to ignore the con¬
servative
Republican
profes¬

has the liberal
Therefore, in
attempting to win these groups,

ilfKi1'

the

that

and Judge Robert

follow."

Alger, one of

pointed

Soutl),

Vice-President

i; \

Case

.

the former chief counsel of the

handful of Republicans

the

fljj*

can

meeting of Board of Gov¬

ernors

Meeting

Wisconsin

Clifford

Senator

and

needs

He

Representative
a

dis-

Congressional

tricts

between

purely

be

to

proved

contest. Mr. Nixon
votes
in the
New
preference primary
several weeks ago than Presi¬
dent
Eisenhower
got in
1956.

were
delighted by the
results of the New Jersey con¬
test

he has
East in

however,

shown,

Hampshire

the east¬

the

today opening his political eye.
He is organized,
and winning,

n?':

to

ern-internationalist wing of the

book

'V'

adhere

cratic

Nixon has al¬

voter appeal in the

what

within the Republican
Although many Repub¬
who

chance to

a

States."

Vice-President

ready

today caught between two view¬

regimentation so dear to
self-styled liberals and is

get

never

United

the

sec¬

sound

points

bring the

Republican President of

the

real

Party.

Vice-

the

meanings and

differential

Vice-President Nixon appears

as

rejects

of

Firms

May 19-20,1960 (Nashville, Tenn.)

unless

that

will

"he
be

tions of the country.

protecting and
individual free¬

well

as

strengthening

call option, risk limited
to the cost of the option (maybe a few
hundred dollars), you can make unlimited

Arizona

1958 election.

the

President campaigns to

have recognized
their argument to

importance

principle,

of

conservative voters to the polls,

suit their audience, many issues
have

idea of

platform

party

the

statement

a

warned

politicians
shifting

ago.

Representative John J.Rhodes,
Republican
of
Arizona,
has

number of
country.

a

on

our

down

paying

debts and in preserving a

How with a put or

m

I

in

whoever

plain terms

in

be¬
He

he

as

for his family.

of

picked up sev¬
Senator Gold-

followed by the GOP in

issues important to the

balanced

a

with

he

indorsed the

has

replacing

mem¬

party.

same

candidates

As

conservative*
budget

"the

that

believes

are

in

Mr.

with

the

weeks

water

they may be,
will have to commit themselves

said

Alger

conference

his

of

parties

liberal image.

Representative
after

eral

During the next seven months,

Vice-

the

over

more

between

difference

the

assert-

were

of

(4) There is, and
must always be, room for hon¬

of his Texas area

disturbed

edly

have

be

will

bers

that

the

(Atlanta, Ga.)
Stock
Exchange

1960

Association

Meeting
which

votes

viewpoints that
encouraging
to
con¬

ferentiation

'

)'«

May 9-10,

Company

11-14, 1960 (White
Springs, W. Va.)

est

the views

at

dinner

May

type votes.

for

«!

»i

about

and

investments but this outfit has much spicier

servatives.

constituents

i}';!

|jj(|

rather

Soupnoodle

handle my

try and compete with the Dem¬
ocrats for "liberal" or New Deal

on

day after day. The Demo¬
attracting most of the

pages

crats

have

I'd

magazines

parently will take on the stump
There has been
some apprehension that he might

time

cult

pro

of

Association

Waldorf Astoria.

later this year.

Republicans have a diffi¬
staying on the front

The

r

f!iVf

some

annual

York

New

JR.

stand Vice-President Nixon ap¬

testing for the Presidential nom¬
ination, and there are evidences
that tempers will be ruffled be¬
fore the balloting starts at Los
Angeles, the Republicans
their problems too.

,

"Actually
With the conventions approach¬

ing

Traders

Security
E0CAR ALLEN

Conservative's Doctrine

While the Democrats are con¬

i'iil

April 29, 1960 (New York City)

government.

GOP's Problems

W-

•

,

Minnesota.

If

gotten '

the Vice-President
should have great participation
in the executive branch of the

Massachusetts; 11
predicted
Senator Stuart Sy¬
mington of Missouri, and one
said
he
thought it would be
Senator Hubert H. Humphrey of

'•fc

has '

government

thought

of

Kennedy

Spring Party: Luncheon at Mis¬
Club, cocktail party
and banquet at Park Plaza Hotel,
April 28; Field Day at Glen Echo
Country Club, April 29.

souri Athletic

Mr.

thougrht it would be

would

'

a

big and the problems so great,
Nixon
has said
that
he

so

Steven¬

E.

the

Because

loser to Dwight D. Eisenhower,

ll

given

ever

become complex and has

who has had the nomina¬
twice
and is a two-time

son,

has

(St. Louis, Mo.)
Municipal Dealers Group

April 28-29, 1960
St. Louis

Vice-President.

Perhaps the only surprise of
secret ballot of the editors

was

.

Nixon more par¬

ticipation in the government of
the United States than any Chief

the

$

IN INVESTMENT FIELD

he be
Eisenhower

should

President

elected.

in the union.

views.]

EVENTS

to make the
Obviously,
he

closely,

has given Mr.

almost every state

represented

(B

decision.

with

Editors, 45 of the
editors predicted the Republi-"
cans
will win, and 42 thought
the Democrats will elect the
next
President.
The
editors

■fcK

expects

he

wants someone that he can work

Society

the American

Vice-Presiden¬
At the same

the

for

nomination.

in the Nation's

other

the

of

oivn

Nixon hopes to see an open

contest

of Newspaper

coincide with

not

may

COMING

reports that

have been

There
Mr.

Capital

"c

the "Chronicle's"

nian, Richard M. Nixon, will be
the next occupant of the White
At

si

and may or

Also, the Repub¬
apprehensive
that
Chicago convention will
are

be a great anti-climax after the
shindig of the Democrats.

Society of Newspaper Editors
think the 47-year-old Califor-

I

ing the news.
licans

their

slight majority of
members of the American

convention,

re'

fleet the "behind the scene" inter•
pretation from the nation's Capital

Securities

a

column is intended to

[TTiis

Broadbottom and Bubbfedome

'

situation.

national

ill

I.i

payment on the national
is a fine objective, but it

debt

BEHIND-THE-SCENES INTERPRETATIONS

|:i:

billion-

that $5

editor

an

a-year

WASHINGTON AND YOU

fl

i'

Thursday, April 28, 1960

with

\ V'i

I

.

(1872)

LERNER & GO.
Investment Securities

10 Post Office Square,
Telephone

.

HUbbard 2-1990

''"
r

Boston 9, Mass,
Teletype

»

*

BS 69