Full text of Commercial and Financial Chronicle : April 30, 1959, Vol. 189, No. 5842

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c F

ESTABLISHED

Ut^

U» I

1S39

MAY 1

1959

SINESSUBRA^STRAT1QN

V

t

Reg. U. S. Pat. Office

Volume

189

Number

5842

New York

7, N. Y., Thursday, April 30, 1959

Price

50

Cents

Copy

a

EDITORIAL

Strategic Factors in the

||| As We See It
Men at

time

some

masters

are

The

fault, dear Brutus, is not in

But

in

The
time

ourselves,

that

we

Cnnent Easiness Outlook

of their fates:
our

By

might quite appropriately have added that
in the

successful

yet in the

nor

opines prospects for avoidance of inflation

system of free enterprise that our individual lots

better and

have not been and
arq

at least

And

had he

further

all

he

been

not what

as

well have warned

labor and business wage and

permanently

advance

men

tations of monetary

from

reader
generalizations

supposes

are

for

passing is probably the

one
can

the
our

system,

and

the

:

Perhaps

be taxed which, in turn,turned
and private deficit financing.

save or

public

Even

a

of

hard

the

this

greatest

the

than at

more

country

we

are

point

to

fore¬

cycle is approach¬

decline

hard

very

the

after the

but

turn, the
increase

or

to

foretell; the possibilities
recession turning into a depres-

sion

most

are

difficult

close

to

current

short

a

capacity,

relatively

Woodlief Thomas

easy

period

of

interdependent and compatible, i

are

to measure—at least

in aggregate terms.

One

can

i

usually

James J. O'Leary

i

be

confident, moreover, that the prosperity phase will
last until some fairly obvious weaknesses and malad-

Continued

29

New

on

page

objectives, but more and more the
question^ is
being
raised
as
to
whether they
are
mutually compatible.

26

ISSUE

Bond

Traders

Candid

—

we

today's

in

appear

Pictorial

Municipal

*

> ;

y,

.

-J

;/

-

Lester, Ryons

?

••

m
mV'

17,

California
Members New York

CHEMICAL

MONTHLY

Burnham
MCMBMS NEW

15 BROAD STREET.
CABLE!

NEW YORK 5, N.Y.

San

Diego, Santa Ana, Santa Monica

Inquiries Invited
California

EXCHANGES

•

Dl 4-1400

Bond

Dept.

Teletype: NY 1-708

Active

Markets

New York

TELtTVPB NV 1-22S2

COBUBNHAM

Net

Distributor

To

Dealers,

Banks

ESTABLISHED

•ifr;
vM

/.

Brokers

Securities

New York Stock

r'l

Exchange

American

Block

Inquiries

$200,000

"

Commission

Orders

for California's

Com./wts.
4%%
Invited

Executed

Canadian

t

On

Price

BROAD

STREET

NEW YORK 4, N. Y.

gGOUuce&t COMPANY




July

Debentures
1,

United

DIRECT

WIRES TO

•

PERTH AMBOY

Goodbody
115 BROADWAY
NEW YORK

102%

to

States

yield

Expanding

Dollars

4.65%

Economy

Domiaio?! Securities

MUNICIPAL BOND

&

6rporati07!

Co.

1 NORTH LA SALLE ST.
CHICAGO

\

•

DEPARTMENT

MONTREAL AND TORONTO

■EMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

1977/72

DEPARTMENT

Teletype NY 1-2270

.i.

DALLAS

Due

Payable in

AH

Exchanges

CANADIAN

25

Municipal Bonds

METROPOLITAN TORONTO

Exchange

Stock

BANK

THE MUNICIPALITY OF

british columbia
oil lands

Members

Chase Manhattan

Southern

Maintained

and

1832

/•:

1 !!$$*

on

Securities

Correspondent—Pershing & Co.

Dealer

T. L.Watson &Co.

the

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Company

VO,< AND AMERICAN STOCK

DEPARTMENT

BOND

Encino, Glendale, Hollywood. Long Beach,

LETTER

and

Bonds and Notes ;

Exchange

Offices in Claremont, Corona del Mar,

THE FIRST NATIONAL CITY BANK

BOND DEPARTMENT

Housing Agency

Stopk Exchange

Members Pacific Coast

VIEW

BANK
30 BROAD ST., N.Y.

Public

Associate Member American Stock Exchange

BURNHAIVI

CORN EXCHANGE

Inveistnnent

Co.

,

HAnover 2-3700

•

&

623 So. Hope Street, Los Angeles

THE

FIRST

30

and
;

Securities

~

page

|

Section.

///?/,// ■■■ Vf'S,

Housing,

-

Underwrite

on

State, Municipal
/

TEi.Ki'ifbvE:

ques¬

country

photos taken at the 27th Annual Dinner of the Toronto

Association

U. 8. Government,

Stale ami

as a

♦From an address by Dr. O'Leary before the College of
Commerce,
University of Notre Dame, April 16, 1959.

in

Public

can

Continued

by Mr. Thomas before the Helen Slade Memorial
Forecasting sponsored by American Statistical Assn..
York Chapter, New York City, April 23, 1959.
on

THIS

Specifically, the basic

tion is whether

maintain full employment and vigorous economic growth
without inevitably experiencing a further upward push

address

♦An

...

These goals are still almost uni¬
versally accepted in this country as
being our primary national economic

the

time

labor force; (2) vigorous
economic
growth;

viewed these objectives as mutually

to

appraise.
When, however, economic activity

is

our

sustainable

(3) stability in the general price
level, and (4) preservation of eco¬
nomic and political democracy. We
have, at least until recently, always

turn

limits of potential further expansion

de¬

PICTURES INT

rapidity

within

Conference

DEALERS

at

are

when the

come.

of

early days ardently preached the doctrine
that we had reached economic maturity, that
there was no longer any likelihood of enlarged
page

made with

foresee

is

~

be

turning point. It is
exactly when

a

to

in its

on

of

waves

ment of

will

termined effort to "soak the rich." The New Deal

Continued

willingness to

are

from which short-term

The difficult times

are

ing

are

empty philosophizing with¬

American

over

any other time in the history of
critically studying our broad na¬
tional economic goals. These tradi¬
tionally have been (1) full employ¬

cast

and

traditional

explains how inflationary "forced savings" is tantamount
to government printed paper money. Attributes
postwar
inflationary pressure to excess demand for capital funds

perity.

anything about us, let him look
inquire as to the real origin of
popular demand for all sorts of changes in
him

inflation, particu¬
of growth—i.e., savings, and

course

where recovery is turning into pros¬

relation to

out

about

we

prime

upon

loose
through which

We

assurance.

moment that these

a

larly

out administered

and fiscal policy to prevent instability

forecasts

now

by seeking somehow to acquire
society than, they contribute to it. / .../

If any

He portrays serious consequences df

price policies for retarding

The phase of the business cycle

wanted and not
more

our economic growth, the economist concludes
employment, economic growth, and general price
stability are interdependent in the longer run and must
be pursued as a whole to keep our economic
society free.

full

growth and increasing unemployment; and stresses limi¬

by dili¬

gent production of goods and services that

reviewing

predicts moderate 5% GNP growth rate for
year, followed by slower, normal 3% rate if

sponsibility for stable growth; singles

our

often overlooked fact that

ing

develops. The economist condemns labor's
contribution to inflation and asks
they accept their re¬

individual positions can not be
improved by trying to force our
more
successful neighbors to share
unduly with
us that which their
frugality and their enterprise
have brought them, or by
tampering with an
economic system which has
through the centuries
proved itself far superior to the type of social
and economic organization that is now
being
sought by the discontented. Were he moved to
moralize he might also cite the
elementary but
us

a

no philosophical or academic
escape from prac¬
reality in Dr. O'Leary's impressive array of "creep¬
inflation" and "stable dollar" arguments. After

tical

looked

never

Insurance Association of America, New York City

There's

inflation

no

disposed to push the matter

might equaliy

that

should like.

we

By DR. JAMES J. O'LEARY*
Director of Economic Research

Deploring what forecasters overlook, Federal Reserve
economist denies:
(1) tight money induced our reces¬
sions; (2) government can assure stable growth; and
(3) wages are solely to blame for inflation. Mr. Thomas

poet had he been writing ill this day and

the fault is not

THOMAS*

Life

underlings.

are

WOODLIEF

Economic Adviser, Federal Reserve Board

stars

Associate Member of American Stock Exch.

40

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

Bank of America
NATIONAL

savin*OS ASSOCIATION ♦

300 Montgomery

St.. San Francisco,

Calif.

The Commercial and Financial Chronicle

2

.

.

.

Thursday, April 30, 1959

(1982)

Try "HANSEATIC"
important to you to
broad range of active

When it's

reach

a

The

Brokers. Dealers only

For Banks,

markets in

they to be regarded, as an offer to

plete Over-the-Counter facili¬
ties, enables you to get the

possible coverage of the
want.

best

and American Stock

combined with com¬

system,

markets you

'K.

'

.

The

security

lished

outstand¬

of

net

York 5

•

CHICAGO

SAN FRANCISCO

net

and

income

were

adversely af¬

to

other

capital

Working

Norr

is

share.

Members

its

times

1958

low?

Lakeside has

brokerage service
Securities

SELETTI

our

S TO C K S
"

For current information %

Teletype No. NY 1-2762

discovered a new

of

molybdenum

and

$3.50

between

Therefore, we
must look

American Furniture

Life Insurance Co. of Va.

Yamaichi
of New

$4 per 'sharp
Earths Division

to

factors
c o

m

in

new
the

p a n

y's

STRADER and COMPANY, Inc.
LYNCHBURG, VA.

Wire

to

TWX LY 77

New

York

City

*

\

"/

Tokyo, Japan

'

Brokers

111

Metallurgical and
Engineers, Mr. H. D.

&

Investment

.

J

,

;

Bankers

Broadway,N.Y.6COrtlandt7-5680

Bailey, manager of the mine and

geologist for Molybdenum Cor¬
poration, stated . . . "We have in
the neighborhood
of 20 million
tons of ore, averaging somewhere
around 10% of rare earth oxides."
This works out to roughly four
billion pounds of rare earth ox¬

de-

of

) ;

Petroleum

of

Yamaichi Securities Co., Ltd.

annual

the

tute Of Mining,

outlook. These

areas

Rare

meeting in San
Francisco of the American insti¬
At

for

elsewhere

the

York, Inc.

Affiliate

J

velopment
( 1 )
Rare
Earths, (2)

Opportunities Unlimited
IN JAPAN
Write

earths have

a

for

our-

Stock

Monthly

other reports
that give you a pretty clear
picture of the Japanese
-economy as a whole.
;

<

Digest, and

our

within the

Nomura Securities Co., Lt

theoretical value of

.

■;

Commonwealth Natural Gas

4/-;.',/

61 Broadway, New York 6, N* Y«
hormones called
approximately $2,500. per ;sljare^
Telephone; RQvyiingGreen 9-0137
norepinephrine are
While stressing that this is a
This is not. an offer or solicitation, for
(1) Rare Earths (Defined as. ad¬ theoretical value I want to em¬
among the most important keys to
orders for any particular securities .;
mixture of 14 elements which oc-?
some of the mysteries of biochem¬
phasize'"strongly that ,it could
istry.
These hormones influence cur together in nature, the most
hardly remain so if the markets
blood pressure, emotions and other common of these being cerium f;:
which I .envisage become an ac¬
X,;"'
'-v.*>".
lanthanum.)
Molybdenum
functions beyond conscious con¬ and
tuality; Therefore, Molybdenum's
first conceived the
trol. It has been discovered that Corporation
possession of these enormous re¬
For the
[k
idea
that
a
large, tonnage
use
an enzyme called MAO, monamine
serves
would create a po.werful;
MUNICIPAL BONDS
oxidase, destroyed these hormones could be found for rare earths in double leverage in the market'j
«f
which influenced the brain and the steel industry if sufficient sup¬
evaluation of this stock.
were made
the maintenance of blood pressure plies of rare earths
WEST VIRGINIA
A good example of this can be
at
economic
prices.
at the proper level.
JB 516 has available
found in
VIRGINIA
thet oil stocks, which are
years
of
searching,, the
been
useful in counteracting or Alter
evaluated both on earnings and
NORTH CAROtlK
inhibiting MAO and permitting company in 1951 acquired in Cali-i. reserves. What price will the mar¬
C
fornia the largest and richest de-*
the hormones to accumulate nat¬
SOUTH CAROLIN
ket eventually
place on Molyb¬
urally. Studies found JB 516 about posits of rare earths in the world. denum's reserves of rare earths?
50 times as powerful an inhibitor The next step, working out meth- .

serotonin and

Bassett Furniture Industries

Call'or write

Securities Company

alone.

the company's fortunes
next 18 months.

brain

Certain

Trading Interest In

"

■

*

Approval by the Food Columbi u m,
Administration has not and (3) Molyb¬
ides,
currently
worth
$1
per
denum,
each
been received, a prelude to mar¬
pound.
.
John
J.
Seletti
keting. But, if approved, and if of which has
This deposit is larger than the
been years in
the drug justifies its early indica¬
total known deposits of the rest
tions, the market should be sub¬ preparation. All three now appear
of the world..- In other words, the
stantial
with little problem ■ of at the "pay-off" stage, :^and all
corporation's > reserves . of
rare
finances or marketing.
should have a powerful impact on

Exchange Place, New York 5

—5-2527—

^

branch offices

JAPANESE

(e)

underway.

Phone: WHitehall 3-7830

Private

N. Y.
1-1557*

Mobile, Ala.

;

Direct wires to

and Drug

LD 39

NY

New Orleans, La. - Birmingham, Ala

quality, of low carbon steels, and;

'

fall into three

product with a very significant
potential. Testing of the drug,
called Catron (JB 516),
is still

for Banks and Dealers

40

:

HAnover 2-0700

^Yl<i).XlxnprQve workability arid

^

from

modest dynamic

a

$1,840,000. What then is the ap¬
peal in a security which is cur¬
rently
quoted at
almost three

Security Dealers Ass'n

V

tungsten.

in-;'

declined to $1.33 per

come

GROSSMAN
& CO. INC.

David

compa¬

and

nies

S. WEINBERG,

Unlisted

19 Rector St., New York 6,

Corporation's reventie up> conservatively estimated produc¬
present time has been the tion., costs,* I project earnings of

the

processing

of

products

all

variety of high-tonnage

Earnings Potential: On the basis
Molybdenum Corporation of< America *J
of a 40 million pound market an¬
The
main • source .of
Molyb¬ nually for rare earths and present
denum

fected by new

in

a

'

1958

fiscal

In

sales

Wires to Principal Cities

a

York Stock Exchange

Members American Stock Exchange

in

Reduce: surface imperfec¬
tions. in low alloy and loW carbon
Security Anal yet
;v
Bros. & Co., New York City jv' steels. ;
,::v;

Sutro

last five years.

Teletype NY 1-40

J.

JOHN

$300,000to
$600,000 in the

Stock Exchange

•

Render

Steiner, Rouse &Co
Members New

■C£-[ fits

the next few years.

has

from

varied

Member

BOSTON

7.

York, City. (Page 2)

.

expanded without recourse to
(b)
Reduce excess hydrogen,
a new plant.
Marketing problems
particularly in certain types of
may be eased by cross licensing stainless
steel;
vS,
and other similar arrangements;
(c)
Improve rimming steels,
Lakeside appears to have? a prod¬
thereby reducing labor costs;
uct capable of unusual, results in:

pro¬

income

PHILADELPHIA

N.

Bought—-Sold-—Quoted

Analyst, Sutro Bros. & Co., New

be

'

Private

Molybdenum Corp. of America
John
J.
Seletti,
Security

'
industry is unique in steels:1
the substantial discovery potential v (a) Decrease rejects caused by
afforded. Production tcjpn; usually cracking and tearing;

earh-

are

portions;

Established 1920

WOrth 4-2300

Louisiana Securities

David

The drug

a

;

..

ings

Corporation
American

is

best

speculation. Lakeside Laboratories
is a small drug company with

modest

120 Broadway, New

like

I

,

Alabama &

:

Co., New

&
York City. (Page 2)

-

to

problem.

Lakeside Laboratories

297,048 shares of stock
ing.
Estab¬

■

New York Hanseatic

Associate

Stock Exchange
Exchange

York

New

Members

earnings

—

;Norr, of Burnham

the $10-$20
level in a few years in my opin¬
ion.
At present prices there is of
course considerable downside risk;
in the event of some unforeseen

Burnluim and Company

nationwide private wire

are not intended to be, nor;
sell the securities discussed.)

share

NORR

DAVII)

big help.
Our

this fornm

(The articles contained in
are

large and

Laboratories

Lakeside

particular security/

a

•

hurry, you'll find

a

for favoring

participate and give their reasons

Participants and

Their Selections

week, a different group of experts
and advisory field from all sections of the country

fin the investment

This Week's

,

Forum

A continuous forum in which, each

experienced
trading department can be a
our

Security I Like Best

void

Only time will tell, but I would
ods
of extracting
the ore eco- v
as a well known pioneer
like to point out that if the mar¬
in the field but. in con¬ nomically (a difficult problem as ket eventually placed a value of
the ore was unique in many ways)
JB 516 was completely de¬
only 10 cents on the dollar for
was
successfully
solved.
The
of
adverse
side effects, a

most

conspicuous advantage.

■

coll

of MAO

product
trast
For

Banks, Brokers and Dealers

Significant results from the use

JOHN SUMMERS LTD.

A.D.R.

FAIREY AVIATION

REG. LTD.

the lowering
of
blood
pressure
in cases of
hypertension, or high blood pres¬
sure; secondly, the drug was an
attractive
psychic energizer for
treatment
of
depressed
mental
of JB

states.

518

In

(1)

were

this

relation the drug

also found useful in

was

blocking

convulsions resulting from

electric

present facilities at Mountain
Pass, Calif, enable the corporation
to produce approximately 15 mil¬
lion pounds of Rare Earth com¬
pounds annually. This compound
sells for a dollar a pound./Marx
Hirsch, the President of Molyb¬
denum
Corporation, states;):that
this productive capacity could be
tripled if demand warranted, with
only moderate additional expend¬
itures for labor and machinery.

these

shock.

ELLIOTT

AUTOMATION LTD.

Third, JB 516 was also
The corporation has pioneered
used
effectively in angina pec¬ in the use of Rare Earths com¬
toris, a painful heart condition. A pounds for the steel industry, .and
fourth use may be in the treat¬
has now developed and patented
ment

A.D.R.

in

of

arthritis

combination

alone

either
with

or

existing

drugs.

Bought—Sold—Quoted

j

Existing products for depression
angina have
a
market of
about
$12 million each, but of
and

Members:

55
Tel.:

Neir

York

Stock Exchange

Liberty St., New York 5
BE 3-8880

Teletype NY 1-468S

Private Wire System to Canada




oxides

that

are

Earth

economically ad¬

vantageous to use in the. low car- bon steels. This is the large-ton- "

some

share.

LaKeside

might carve out

It is conceivable that

could

increase

its

per

with

mately $250

a

per

one

Consequently,
above analysis,
division

would I still

RICHMOND,

ALONE

of the
earths

in view
the rare
would

to

seem

h0uk

"justify" the technical projections
for the stock, but what makes this
such a particularly dramatic situ¬
ation is that this company's two
other divisions offer equally ex¬
citing prospects.

Let us examine

them.

1

Columbium
bium is

VIRGINIA

figure of approxi¬
share.

a

Division:

C

o

white metal with

1

u m-

one

SAVM&

of

the highest

melting points of the
metals,- approximately 4,400 de¬
grees Fahrenheit. Very expensive
to refine into a pure state, it has
been used for years in a semi-

pure form
called Ferro "Colum¬
market that the corporation bium
mainly as an alloying agent
aiming at, and which* in stainless steels.
could mean an eventual market,
The current world production of
for this company's rare earth com¬
Ferro
Columbium
is
approxi¬
pounds of 40 million pounds a
mately IV2 million pounds an¬
year.
T\
>",!■*
nually, and it sells between $3.50
The
economic
incentives
for and $4 a pound.

has

Over-the-Counter

been

is believed to be about $30 million
of which JB 516

up

nage

importance there are a
number of patients not under
treatment at the present time for
lack
of
a
suitable
product. In
arthritis
treatment, steroids are
believed to have sales of $20 mil¬
large scale use of Rare Earths
lion; to what extent JB 516 might compounds By the steel industry
be used in conjunction remains to in the near future appear conclu¬
be seen. The hypotensive market
sive to this writer.
The addition
greatest

vast

Alfred L.Vanden Broeck&Co.

several compounds of Rare

reserves,

come

F.W.

of two to four pounds per

-

has been shown to produce

some

or

all of the following bene-

largest Columbium
posits in the world.

ore

de¬

Molybdenum Corporation also
a joint venture in a property

Continued

<

-r

on

National Quotation Bureai
Incorporated
Established 1913

has
v

for 46 Years

Molybdenum

what is believed to be one of

the

ton of

steel

Kennecott 'and

own

Quotation Services

page

32

46 Front Street
CHICAGO

.

'

New York4,ILV
BAN

Volume

189

Number 5842

.

.

.

The Commercial and Financial Chronicle

(1983)
1

The Bull Market

n d e x

Today

By G. M. LOEB*

'

3

*

; :vv; %

Articles and News

■■

Partner, E. F. Hutton & Co., Members N. Y. S. E.

Strategic Factors, in Current Business Outlook

>

Market

S'f-

analyst depicts public's foibles in its reactions to the

price swings in

grade issues, and concentration
to

—Woodlief Thomas

booming market. Advocates shunning of low

a

Our

Blue Chips and issues about
Preferred equities to

on

—James

graduate into that charmed circle.

bonds despite unusual differential in

Concludes "after the show is

fundamentals will have

to

over

yield favoring the latter.

:

Economic Objectives:

_

Are

They

A PRICE

Cover

_

TO REMEMBER

Compatible?
h

J.

O'Leary_;

The Bull Market Today—G. M. Loeb__-

——

.The

For the Free Economy: With Lip Service—A. Wilfred
May

V.V

4

On the Right Track for Tax Revenues—Ira U.

are full o£ "warn¬ soon as the market really started
"cautions" these days. to go down, the reverse happened
The
red ; lights
are
flashing and al most everybody started to
talk about how -"sQuhd" every- ?
everywhere. >( :
In terms of
thing was. You get ;a play-by-play
practical
description of this Jn John Keri-X

woods

what
it'..mean

does

d-w ha t

-an

should

do

we

about it?
Let's

months

few

a

•

chase

begin

Of

the

satrie-price; but oh the

warnings

If

and

cautions

th emselves.

*

best

f

to

were

buy

The

G.

M.

Loeb

a

The Case for Bank

down.,.
stock that is
way

misunderstood. The New

I

as

understand

Exchange,

I believe,
is shaking its admonishing finger
<

those

curities

who

not

can

afford

of

means

and the risks involved.

another

it

they

way,

This doesn't

/»
,

American

way ^

back

'

to

;

100

think

I

Stocks—Roger W. Babson

1

|

or

METROPOLITAN

CHARLESTOWN
14

at

Vi.V.V

concession from

a

The Matter of Tax Equality for Mutual
Savings Banks

—August

ST. REGIS CORP.

Ihlefeld

How Can We Expand. Our Markets in Latin America?

—J. Peter Grace

20

J.F.ReilIy&Co.,Inc.

The Marginal Income Approach to Long-Range Profit

Planning—Robert C. Trundle, Jr..

Stock
>

"1

1

DIgby 4-4970

Soviet

Foreign Trade

Operations Detailed——

mine who

is

is

needed

to

The

not

Regular Features
As

See

We

It

market

time

is being bought.

generally

14

Pacific Uranium

Bookshelf—

Man's

:*Business

—48

\

"-V.T

.1

•

-

'

1927

*A
vard
^

talk

were

not

4

16

by Mr. Loeb

Business

School

of

New

that

stocks

fairly

at

priced

at

News About Banks and Bankers.

explain, but it is

Our

Reporter

Our

Reporter's Report

Public

—

Securities

Railroad

Securities Now in

Registration

Salesman's

Securities

*.

.

.

Corner

Wallace Streete

and You—By

earnings

The

State

The

real

decline

'

on

:

page'
"'
'

20
v'~

of Trade

Washington

Industry

and

You

and
Twice

York

„




Permachem

■

•

'j

Corp.

Reeves Soundcraft
Copyright 1959 by William B. Dana

Weekly

Stock

Exchange

„

_

.

Company

Park
-

■

;
•

.

Reg. U. S. Patent Office

'

■

|

Chicago

Schenectady

TELETYPE NY 1-5
Glens Falls
Worcester

Re®°t"eodloaR E.ec.Td"clas.s "}atter Fe^ru'
25, 1942, at the post office at Ne*

»ry

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

Publisher.

DANA COMPANY

Subs„iption

Place, New York 7, N. Y.

KVntnr
REctor

o

0^70
9o.O

_

to
to

GEORGE
WILLIAM

J.

SEIBERT,

.

..Thursday,

Every
vertising

.

*

,

April

30,

in

United

Other

Editor

£°mini°n

Offices:

135

Members
Der

$68 00

Other Countries, $72.00 per year.

Other

.

South

Cailada

U.

"

■'

year,

per

■.

>

8
of

39

BROADWAY, NEW YORK 6

in

year"

WHitehall

3-3960

1959

.

Thursday (general news and ad¬
issue) and every Monday (com-

3,' 111.

States.

Territories
and
Pan-American Union, $65.00

President

plete statistical issue — market
records, corporation news,, bank
state
and
city news, etc.).

Chicago

INCORPORATED
:

.

Subscriptions

Q57R
90ifa

MORRISSEY,

DANA

WM V. FRANKEL & CO.

Rates

Possessions,

™

i

;•

•/

48

————

CHRONICLE

FINANCIAL

ST., NEW YORK 4, N. Y.

Boston

IV•

.

6

ratio.

PREFERRED STOCKS

TELEPHONE IIAnover 2-1300

i

2

,

Nashville

16

Security I Like Best——i

Spencer Trask & Co.
Albany

35

—___——

..

;

Specialty Co.

45

The

25

BROAD

Chicago

Electronic

...

The Market

Los Angeles

26

38

Offerings

Security

Prospective

Dallas

Cleveland

33

The COMMERCIAL and

New

i

to

8

Securities

Utility

WILLIAM B.

25

San Francisco

Philadelphia

Published

Members

Direct Wires

—•—24

anybody ever makes
quick profit selling a stock short
simply because of a high price

-

specialized in

4

.

York

City, April 28, 1959.

have

on

May.

I don't think

a

Continued

For many years we

22

—_—

Governments

historical

a

INC.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 1-4844
Wilfred

one

15

mackie,

46

—

Observations—A.

earnings ratios, as a mat¬
ter of fact, tend to change slow¬
ly for the better or for the worse.

before the Har¬

Club

Singer, Bean

37

HA 2-9000

Price

As

covered.

Ling Electronics

8

&

Funds

Northrup

'4,'.

fact.

me

1929,
however,
most
of
these
warnings were forgotten and most
shorts

Mutual

possibly at 40 it can seem
again.
Just how this
process
of reasoning goes I can

1928, and
correctly,
there
were
plenty of warnings
and much short selling then.
By

of "the

1

reasonable

even

or

serves

'

Very

short have long since covered.
recall

Leeds &

5
•"

-r

.

no

shares went to 25, it seemed high.
At
30,
it seemed astronomical.

decline, those who had been
issuing the warnings appear in
the wrong because they are for¬
gotten. Likewise, those who were

memory

in

magical about 15, 10 or 20—it just
happened that way.
Now when
the price earnings ratio for these

They generally come too soon.
By the time the market is ready

I

situation

times earnings. There was nothing

short
selling,
at the wrong time.

to

if

seemed

.

like

come

are

&

City

Thomas & Betts
Stocks.

price will be.

There

the stock market rather than what

a

Denver

—Cover

is

guarantees knowing what the

way

deter¬

about

to

Lake

W. L. Maxson

(Editorial),.

Bank and Insurance

tljeir highest

exact science and knowing

facts

wires

Salt

28

V

is that' investment

truth

an

the

doing the buying in

Warnings,

Teletype: JCY 1160

Scotia Urges Open Mind on Canadian

Exchange Rate

——

Exchange's point of view
I think I do—I go
with
them
100%.
Some

watchfulness

11

:

Direct

Bank of Nova

/

York

New

City Stock Exch.

Exchange PL, Jersey City

*

correctly—and
along

Members Salt Lake

22

recorded price
thah
t, Coming Events in the Investment Field——
when they are making new highs.
y." '»■'•£/.Vi
\
'-v"-.
'
More distribution'Is accomplished
V Dealer-Broker Investment Recommendations
became of the general rush to buy
oh a setback' or-.mi a declining
market than at any other time, r ivEinztg: 'T. S. Demand for British Equities"
The danger lies iii the seemingly
;
From Washington Ahead of the News—Carlisle BargeronJ
temporary reaction turning into a *
major downtrend.
Indications of Current Business Activlty_______

Needed

the

understand

:

18

previously

the

>

RACING ASSN.

.

.

Watchfulness

BROADCASTING

12

As—Hon. Richard M. Nixon—'—

hand,.- it is a great
failing to want something
at a discount.
Repeating what I
said a moment ago in a different

the cats and dogs of today—some
small proportion of which may be
the blue chips of tomorrow..

I

CENTRAL

PUBLIC UTILITIES

11

'

—

On the other

the

understands

even

REEVES SOUNDCRAFT
10

human

out.

"necessity of needing some people
who twill; take?the risksVpf buying

If

YORK"

WHitehall 4-6551

PERMACHEM CORP.

Submitting East-West Disputes to the Hague World Court

always at¬
tracts some ill-advised fringe buy¬
ing. Being excitecl^ about som£-;
thing you expect to happen be¬
comes a
strange sensation at the
time it actually happens. You talk
about
growth, but when things
actually start to 'grow,; you then
become fearful.

that the Ex¬

mean

business.

Exchange

STREET, NEW

9

,

—Philip Cor they

change has changed its tune about
the advantages of public oppor¬ way, this means that stocks seem
cheaper to the man on the street
tunities in. owning
a
share of

•:3

»

/

selection

Or, to put
are telling

the amateurs to watch

c?

se-

who do not understand

or

sensible

»

Dept.

^

movement of this kind

them, are simply re-emphasizing
the
principles of sound invest¬
The

1

Role of Businessmen in the Def ense of the Free
Society

More recently, H think the Fulbright investigations of early 1955
frightened many
investors
into

quarters. However, I think

warnings,

ment.

V

.

•

the

on

less.

and

are

—;

Wed el

WALL

Telephone:

V.—Gordon L. Calvert————

-

Stock Exchange, for exam¬ losing positions in sound stocks.
ple, is not so much interested in
Fringe Buying
warning people against what they
The
should buy as in warning against
present advance is basic
who
should buy or how much. enough —- the trouble • is that a

»;the

99

Opening Night

Community Facilities iAct Has No Basis for Enactment

J'

York

at

6

—

—-Beryl W. Sprinkel

try to sell it at 250 than buy it at.

inten-

-

I

200

the

highest
tioned

they

Cobleigh-

Implications; for the Bond Market With and Without Inflation

supposedly overvalued at 200, I
would rather buy it: at 200 Valid

come

from

T. Carl

later advising pur¬
same
shares at the

with :;> the

They

Jet Age's Financing Prospects Just Before

excellent

book,
Many people
who advised against buying shares
on their way up because of what
they thought was ( a hazard were

J-'

•

"The Great Crash."

policy,
-

Galbraith's

your

on

Obsolete Securities

and

"neth

us

obsoletes!

anything to take home with them."

investment

you'll

'

'

ings"

what

from

get

3 '

i

__

'

■

.

—that's

only those who stick

...

!

,!

\

Cover

_ T._ -

La

quotation
clearings,

Bank and Quotation Record — Monthly,,
$45.00 per year. (Foreign Postage extra,
Wote—Qn

^he

Salle

St.,

(Telephone STate 2-0613).

Teletype

Publications

account

ol

the

fluctuations

rate

foreign

1l

of
exchange,
remittances
fo»
subscriptions and advertisements

must be made In New York funds.

NY

Direct

1-4040

&

Wire fo

PHILADELPHIA

4041

'

The Commercial and, Financial Chronicle
4

.

.

Thursday, April 30, 1959

.

(1984)

above-quoted

bower's

For the Free Economy—

With Lip

Service

MAY

By A. WILFRED

WASHINGTON—Nowhere as at expansion have concretely evoked
international
conference
of non-cooperation from m ember
businessmen is there evidenced so countries. |

an

The U.

obeisance to

17th

Chamber

of

business

a

lobbies

in oil and

And with rising labor and
costs

tending

further

thus:

of

favor

known to man.

the

until

election

in the woolens

moves

1960—hence,

Dr. Einzig sees

U. S. and British

tween

for

by U. S.

concern

And it is difficult for us "l'ree-

up our recovery.

provides

months

to

reminder that in
the attention of

a

come

-

who

presided over the conference:

On Which

"for

CONSECUTIVE CASH DIVIDENDS

S to 175 Years
BOOKLET

for

Vice-President

Executive

Harriman

—

dividends have been

paid, cash dividends paid during the twelve months to December
31st, 1958, and percentage yield, also
between

the

over-the-counter

an

and

analysis of the differ¬
listed

of

visit

markets.

of

Ripley & Co. Incorpo¬

25

to

writers

200

i

n v

i t

of

above

100

or

more,

cover

your

firm's

^

will

^

-

r

tion

discouraged

adequate compensation.
Beyond

follow¬

was

Harold J" Berry

University of Pennsylvania;
Manager of the cor¬

Please enter

in

order for

booklets of "The Over-the-

Progressive and Panoramic" and

panying dividend tables.
Firm Name




He is

board

of

also

a

member of

directors

of

The

of America;
Fifth Avenue Coach Lines, Inc.,
and Gray Line Motor Tours, Inc.
Murray

Date

periods

immediate

no

defend ster¬

usually

was

At present sterling seems

Nevertheless there

secure.

autumn

an

crisis.

cautious

and

possibility
the

Hence

response

of

Stock Exchange to the better

take

to

October

and

now

vember.

it

Moreover,

now

British firms will
change their dividend policies in
the

future.

near

tion

their

of

A larger propor¬

profits

likely

is

than

distributed

be

in

The possibility of a Social¬
victory
will
induce
many

ist

because there is bound to be some
form of dividend limitation under

Labor

a

Government,

out

going is good. Another considera¬
the same direction

tion pointing in

is the desire of boards of directors

defend

to

the

existing control of

their firms against take-over bids.

It is because increased profits are
not

fully reflected in increased
cheap,
providing opportunities for bar¬
gain-hunting both by investors
and by ambitious financiers.

dividends that equities are

Admittedly, higher dividends
ties,

But ;the

attractive.

more

even

would become

that they

so

rise in their Stock Ex¬
change prices would more than
offset this influence. Higher div¬

ensuing

would

idends

reduce

the

Corporation

undis¬

profits the size of which
usually the chief attraction for

tributed
are

take-over bidders.

Not

Need

Lasting

Cause

Setback

true, taking a long view
the risk of a Socialist victory can
is

It

the

Stock

Exchange,

have

change

ignored.

But

the

from

apart

of

election,
and to the improvement of the
international political atmosphere.

equi¬

would increase the yield on

be

general

that

so

directors are inclined to pay
higher dividends while the

many

effect

early

to

recent

years.

the

an

prob¬

seems

able that many

not

British business

be¬
No¬

or

con¬

about

first .shock

on

even

a

need not
necessarily cause a lasting setback
in British equities. For one thing,
of

government

Socialists believe in cheap money,

Sterling

in

the

Autumn

so

In

reality there is no need for
anticipating another sterling scare
in the autumn, unless Mr. Macmillan
tion

decides

in

moment

the
it

to

have

autumn.
seems

the

But
much

elec¬

at

the

more

that

the chances

that

are

the

level of interest rates will be kept

than it has been in

lower

recent

There is bound to be an

years.

accentuation

of

the

inflationary

trend under a Labor Government

will

which

be

determined

conditions

of

full

to

likely that he will defer it until

maintain

the

ployment regardless of cost.
Finally, it is the intention of the
Labor Party to acquire gradually
the control of a large number of

spring of 1960. Disregarding
there is every rea¬
Batten & Co. Formed
son
to believe that sterling will
WASHINGTON, D. C.—Batten remain reasonably steady during
autumn,
apart from
other
& Company has been formed with the
because
the dollar
is
offices at 1835 K Street, N. W., reasons,
to engage in a securities business.
likely to be under pressure. The
Franklin L. Batten is a principal decline of the American gold re¬
serve by $100 million in a single
of the firm.
that influence,

Address

By

the
accom¬

be

named

1953.

was

ample profits

ditions, to the rise in Wall Street,
to Mr. Macmillan's decision not to

ing his gradu¬

of the

during

Even

there

there

news

porate buying department in 1947;
was
elected a Vice-President of
the firm in 1949 and a director

—

bank

figure prominently
the causes of the relatively
low level of the prices of British

the

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

our

high

various disinflation¬

measures

limited

Ripley in

1935

Win. B. Dana Co., Publishers

the

doubt

rate and the

of

Harri¬

man

Chronicle

investors

many

is much talk about the

Mi\ ' Berry

School of Commerce and Finance

Counter Market

Quotations

from buying and holding equities,
for fear of nationalization without

to

Wharton

Financial

British

get into equities
profits. Even if
after
all,
an

be.

boards to increase their dividends,

(2) The possibility of a Socialist
victory at an early general elec¬

future.

ation from the

&

under¬
the

be

tween

compare

have to be resorted to in the near

Presi,

be

it without further charge.

Commercial

to

j

yield something like 1 y->% more
than the corresponding American
equities. This difference is ex¬
plained on two grounds:
Lower

should

autumn election, there are bound

First-class British equities

States.

to

their

take

there

a vague
feeling that such measures would

by

"Compliment®

name

easily

election until the spring
be ample time

there will

investors

and

on
equities of the same
class in Britain and in the United

ling

Stuart F. Silloway,

with the words

is

we

need for measures to

an¬

nounced

15 cents each

the front

on

if

no

196*0

for

yields

when

ies,

been

joined
orders

interest

That

standable

equities.

e'stn*ent

^dsntrv

up

and

distributors of

20 cents each

199——

of

British
the recent

among

cents each

25

will be

Ameri¬

for

equities by American investors,

a

Socialist

of American se¬

group

a

anticipating

of the difference be¬
yield of British and

the

discourage

curity analysts drew attention to
the active interest taken in British

ary

Wall Street, New York
under¬

s e c u r

COST OF THESE BOOKLETS

to 24

And

firms.

industrial

City,

has

1

and

bids

take-over

can

for

reason

Admittedly, the possibility of a
victory will continue to
investment
demand.
But on the assumption that there

Every

about

take

•American equities.

again there
are
reports

Einzig

Paul

rated, 63
number of years consecutive

are

are

usually inter¬

D».

be

tween

themselves.

The election of Harold J. Berry
as

PAGE

one"

Berry, Executive V.-P.
Of Harriman Ripley

Have Been Paid From

60

narrowing

equities
which
American in¬

worshipped as "an indispensable
(1) Until recently sterling was
way of life."
vulnerable, and from time to time
In short, the proceedings here
the
government
had
to
adopt
may
be likened to a group of
measures in
its defense that re¬
do-gooders holding a meeting to
sulted in sharp setbacks on the
protest against drinking, and then
Stock
Exchange
and
curtailed
repairing downstairs to the bar business
activity.

Common Stocks

—

to

in

now

to

For this reason alone there seems

class

ested.

expected

place within the next lew months.

first-

vestors

is

which

trade

buying rises in
certain

market and the free economy are

OVER-THE-COUNTER

American

to

"The

,

Of"

week

LONDON, Eng. — American in¬
terest in the acquisition of British

Marco Polo, the
has tramped
routes of the world

This is not to imply that the
prime condition of our free U. S. has any monopoly on the
society is sound money. And swing back from the free market.
sound money is also the prerequi¬
France, through M. Soustelle, is
site to sound economic expansion,
opposing a free trade zone; and
to
the development of interna¬
the French public is expressing
through either the directly under¬ tional trade, and to international, substantial opposition to the com¬
mining policies of his own coun¬ investment."
mon market.
4
And Mr. H. J. Heinz, II, indus¬
try
or
of others
over
whose
Nor is the obstacle to competi¬
destructive
policies
it has
no trial leader, interrupted his func¬
tive
pricing which arises from
tioning as leader of the American
control.
delegation to the ECE meeting in full employment philosophy con¬
Despite the past herculean ver¬
Paris
to
urge
here a "Parade fined to this side of the Atlantic.
bal
agitation to further the
And even the wealthy countries
Toward a Freer Trade."
internationalist
good life, total
persist in setting their barriers
world trade has fallen by 7% since
Performance vs. Promise
against primary products; as with
1957, agricultural protectionism
But—we find that either through coffee and tea. The raw material
and the creation of surpluses have
producers, mainly the "developing"
galloped ahead, and full currency unavoidable circumstances or
(i.e., underdeveloped) countries,
convertibility is engaged in by varying degrees of free choice,
in line with their .self-interest are
only four countries. And as has the expression of good intentions
complaining about the restrictions
been mentioned here, such efforts constitutes mere lip service.
Hardly had
President Eisen- by the industrialized nations. Sta¬
as
the GATT program for trade
bility of raw material prices is
generally sought. But by "stabil¬
ity"
is meant stability at the
maximum price level.
And gen¬
erally, the quotas, subsidies and
restrictions of various kinds go
1959 EDITION
on
unabated—all while the free

On

for inflation which is said to have held

common

...

representing 5 0 farWilfred May
flung nations,
has proved no
.
exception. Speaker after speaker
during
the week-long
sessions
rose
to preach the "sound" eco¬
nomic gospel; but with its nulli¬
fication constantly discernible,
ers

printed

.

yields is unjustified and is accounted

trade" Americans to explain the equities has been very much in speculators is more likely to be
policy which disqualified British the news during recent months. focused on the dollar than • on
As often as sterling.
tenders for the Greers Fel*ry and
and never has this been truer other electrical contracts, which
M
not, the daily
In the absence of disinflationary
than it is today."
Stock
E x
has caused the representatives of
measures
in defense of sterling,
And likewise from Philip Cort- the U. K.'s electrical industry to
ii§
change re¬ British equities will be in a posi¬
ports attribute tion to benefit by the revival of
ney, another American spokesman, stay home licking their wounds.

down the trade

banking lead¬

ence

ample opportunity for profit-taking; until then

and, he adds, even if there were an autumn election theTe still
remains ample time to get into equities and take profits between
now
and October or November.
Concludes the spread be-

to

march of civilization

by
n d

Included,

Einzig's careful scrutiny. Assuming no
no Socialist victory until then,

equities receive Dr.

evidenced in our recent

as

Since the days of

participated
here

of economy

kind

Commerce,

in

sponsible for present favorable yield differentials of British
comparable American equities, and the outlook for British

over

pers" to note the increase in the
effectiveness of our protectionist

market—
it starts functioning," one
"to prove that the jree market until
economy can outproduce any other wit has been quoted here.
of the proceedings

aim

the

Congress of the
International

EINZIG

Growing interest in British equities by Americans, factors re¬

us begin our demonstration
malpractice
with
our
own price us out of world markets,
the defensive weapon
of tariffs
home-made example. In his key
will be called on more and more.
statement the chief host of the
"The United States will be in
hosts, President Eisenhower set

the full

PAUL

By

predict that U. S.
trade
policies will become in¬
creasingly protectionist. Or they
could have merely "read the pa¬

of

perf ormance.
dress

U.S. Demand for British Equities

Congressmen

areas.

S. Example

Let

good behavior
and
actual
And

of

other

between

contrast

the

strongly

paeans

to the free market here
become dry in his throat before
his listeners heard a panel of key

praise

firms by
on

the

em¬

purchases of their shares
Stock
Exchange.
Such

persistent purchases will tend to
raise
mere

the

prices of equities. Their

anticipation would

be

suf-

Volume 189

ficient to

Number 5842

secure

effects

the

of

shock

re¬

sulting from a' Socialist victory.
One of the main reasons why
it

reasonable

seems

of Philadelphia

to

view

fear

between

the

is

continued

likelihood

pressure

Twin

the

annual

of

election in 1960. That pressure en¬
ables the British authorities to

and

Club

38th

outing

June

at

26, 1959

Municipal

Club, White
Lake, Minn, (preceded by
a cocktail party June 17 at the
Nicollet Hotel, Minneapolis).

annual

bor
June

June 19,1959 (Bryn Mawr, Pa.)

inflationary policy
without risking another drain on
sterling. Now that the idea of a
spring election has been aban¬
doned, we may safely anticipate
bank rate.

Bond

picnic

School

States Sectional meet¬

Consumer

Canada)
Association

Club, St.

outing at Seawane Har¬ A, Clair, Mich.

Club, Hewlett, N. Y.

Outing

tion annual outing at the Overbrook Golf Club, Radnor Town¬

adelphia

Spring

Whitford

ship.

ford, Pa.

at

Stock Exchange

Oct.

14-17, 1959
Pa.)

Consumers Bankers

day at Queen City Club; field

39th

day, Friday, Kenwood Country

annual

In

addition to the recent budget con¬
to

be

cent

with

generous

financial

is indicated by the re¬

as

decision

to

contribute

to¬

wards the

financing of the reor¬
ganization of the Lancashire tex¬
tile

industry.

There

be

may

further stimulus to demand in the
form of increased old age pen¬

sions

in

the

autumn,

and

addi¬

tional amounts of postwar credits

be released.

may

Finds Yield-Spread
Between
are

them

almost

Unjustified

these

certain

to

measures

accelerate

the pace of business recovery.
the other hand, recovery in
United

States

handicapped
taken

in

For this

to

measures

defense

of

the

O

N

F

E

Y

YV

O

it

K

On
the

toe-be

have

may

by

reason

Morgan Guaranty Trust Company

■-

■J-

-

■

nj,

.4. \j

be

dollar.

alone, the existing

began operation April 27,1959, as the

difference between yields on Brit¬
ish and American equities appears
to

be

unjustified.

merger
COMING
EVENTS
In

April

Investment

29-30-May

Louis,
St.

of J.P.Morgan & Co. Incorporated and

Field

1959

1,

n

(St.

j

Mo.)

Louis

Municipal
Dealers
Group annual spring party at
the Sunset Country Club.
May 1, 1959 (New York City)
'

Security Traders Association of
New
;

at

York

the

23rd

BOARD

OF

D

JIt EC TO R S

dinner

annual

Waldorf-Astoria.

May 14-15, 1959, (Nashville, Tenn.)

Security Dealers of Nashville
Annual party at Hillweod Coun¬
try Club and Belle Mead Coun¬
try Club.
May 15, 1959

] 1 E N R Y

DALE

E.

THOMAS

C. A L K X A N D K It

Chairman

S.

LA MONT

Vice Chairman

of the Hoard
L.

S11A ItP

F.

of the Board

MCCOLLUM

President, Continental Oil Company

President

(Baltimore, Md.)

Baltimore Security Traders As-

STEPHEN

D.

JUNIUS

JJE CUTE L

MORGAN

S.

-

sociation

24th
annual
Spring
outing at Country Club of
Maryland.

i

May 15-17, 1959

the

Chairman

American

Executive Vice President

American
PAUL

Biltmore, Palm Springs.

Telephone and Telegraph Company

*

L. PERKINS

THOMAS

C. llGUvN'IUS

WILLIAM

(Los Angeles,

Calif.)
Security Traders Association of
Los Angeles sumnp; party at

5

President, Bechtcl Corporation

of the Board

Cyanamid Company

M. SHANKS

CARROL

President, The Prudential Insurance

C. CABOT

Chairman, Slate Street Investment Corporation

Company of America

May 19-20, 1959 (Omaha, Neb.)
'•i

Nebraska

Investment

Bankers

CHARLES

E UG EN E

S. CIIE ST ON

Association annual field day.

May 25-26,1959 (Milwaukee, Wis.)
Association of Stock Exchange

J.

CLEVELAND

LUTHER

Illinois Central Railroad
JAMES

JOHN

(Detroit, Mich.)
golf outing at the
Country
Club,
St.

May 29, 1959
Basis

Club

A

Bond

(Chicago, 111.)

Club

of

day at
the
Knollwood
Club, Lake Forest, Illinois.

June 5-7,

J OIIN

at

the

Motel,

Santa

Santa

Rosa

Rosa,

June 8-11, 1959 (Alberta, Canada)
Investment Dealers' Association
of Canada annual convention at

Banff

of the Board

Chairman

Trust Matters

on

T. D 0 R It A N C E,

HENRY

W.

ALTON

Chairman

It 0 BE U 'J'

of the Board, Cities Service Company

DEVEREUX

Chairman, New York Life Insurance Company

M

Club.

Club

of

New

Summer outing at West¬

chester Country Club.
June 12,
-

1959 (Philadelphia, Pa.)

Investment Traders." Association




■A

The Coca-Cola

GEORGE

C. JOSEPHS

(New York City)

Bond

YV. YV O 0 D It U F F

Chairman, Finance Committee

JONES

(Boston, Mass.)

Salem Country
June 12, 1959

1

Company

WING ATE

Company of Canada, Limited

Campbell Soup Company

Boston Securities Traders Asso¬
ciation summer outing at the

Municipal

S.

President, The International Nickel

JR.

Springs Hotel.

June 11, 1959

York

of the Board

The Anaconda

Assistant to the President

Security Traders

Calif.

■

Cvmpat ly
WEED

K.

k

Association

Flamingo

Railroad

D. DICKEY

Chairman, Committee

Calif.)
San Francisco

:

SYMES

M.

President, The Pennsylvania

DAVISON

Vice Chairman

1959 (San Francisco,

v

P.

CHARLES

field

..

COL LYE R

CLYDE

annual

Chicago

L.

Chairman, TheB.F.Qoodrich Company
H.

Lakepoint
Clair Shores, Mich.
June 5, 1953

Company

Chairman, Executive Committee

Firms Board of Governors meet¬

ing at the Pfister Hotel.

W. STE T S 0 N

Chairman, Executive Committee

.

*

•'Aruu.in
c

•

III

rA

Company

S. YOUNG

President, The Columbia Gas

Systet/i. Inc.

Association

convention at the

Warwick Hotel.

Club.

-

(Philadelphia,

cessions, the government is likely
support,

meet¬

ing at the Royal York Hotel.

Municipal Bond Dealers Group
of Cincinnati annual outing —
cocktail and dinner party Thurs¬

Country Club, Whit-

of

First Board of Governors

Sept. 17-18,1959 (Cincinnati, Ohio)

26, 1959 (Philadelphia, Pa.)

(Toronto,

Sept. 28-29, 1959

Basis Club summer outing at St.

Clair Inn and Country

Association of > Bank
convention,

Women 37th annual

'

Aug. 14-15, 1959 (Detroit, Mich.)

Women's Club

Investment Association of Phil¬

Philadelphia Securities Associa¬

V

University of Virginia.

(New York, N. Y.)

Bond

of

Wis.)
Banking, Vs; National

5

(Milwaukee,

Sept. 23-25, 1959

(Charlottesville,

9-21, 1959
Va.)

Aug.

ing, Wianno Club.

Bear

continue their

another cut in the

Atlantic

White Bear Yacht

a

and the Presidential

now

Cities

1959 (Ilyannis, Mass.)

Consumers Bankers Association

(Minneapolis-St.
Paul, Minn.)

the dollar

on

June 25-27,

Country Club.

June 18, 1959

prospects bf British equities with¬
out

Summer outing

at the Overbrook

overcome

first

(1985)

The Commercial and Financial Chronicle

.

.

firm undertone

a

after the markets have
the

.

:

M-

€

The Commercial and Financial Chronicle

.(1986)

...

.

Thursday, April 30, 1959

Most

On the Right

existing greyhound tracks
privately owned.
There are
or
three, however, in which
shares were publicly underwrit-/ten,
with
the
issues
currently >
are

Track

two

Foi Tax Revenues
By DR. IRA V.

in the Over-the-Counter
Legalizing the sport in a
state has usually attracted sub¬
stantial capital for building parks.
A fair-sized greyhound track could v
be built lor $2 million; and almost

trading

Author of "How to Get Rich Buying Stocks."

Enterprise Economist and

appraisal of the important and rising revenues
certain states are gleaning from greyhound racing; and some
notes on the political and economic importance of dog tracks.
Containing

an

dog is liv¬

the

more

city with a population of
500,000 or more might support one.
With the Giants and Dodgers gone

em

do.

for
and
big mon¬
ey.
In 1 95 8,
over $215 milrun

money,

into

l i

o n

was

U.

Ira

Cobleigb

bet

greyhounds

on

for

pari-mutuel

at

windows at 32 tracks in Arizona,

Arkansas, Colorado, Florida, Mas¬
sachusetts, Oregon, Rhode Island
and South Dakota. Each of these
states derives a sizable and grow¬

good,

ple

The

New

hounded

being

are

it's

taxes

about

hoancls share

brings

down

us

to

time

rate

Thus

New

is

it

York
the

lowed

that

some

State, ,,who

of

Practically all of the fourth-to-first quarter GNP gain of 2V2%
in physical volume,
with average prices showing - little
change.-The expansion so far in 1959 reflects a rise in the con¬

To Admit Barnard

agonized

sistance Fund.

taxes!

Greyhound racing is not only
an exciting and fascinating spec¬
tator sport but its popularity is
increasing at a far faster rate than
horse racing—flat or trotting. In
the
states
where
both
racing
sports are legalized, greyhound
tracks arc the more dynamic per¬
formers.
For
example
in
1958
(again in Massachusetts), total
the Commonwealth

was

$5,466,2121 from running and har¬
ness
horse
racing
combined,
against $6,033,294 from dog racing.
In Colorado for the years 1950-58

dog racing contributed $10,527,930
in revenue against $5,090,101 in
the same period from horse racing

If

Dxchange, oh
Henry G.
Barnard, Jr. to partnership. On
April 30th, Kenneth F. Dietz will
retire

from

York
tax

State

tax ..50,

2d—15

retail

cents

price

smokers be

of

and
in all out

29(\

Why

of

a

should

savagely penalized?

so

admit

partnership' in

**v"

1 in favor of the dogs.

to

industrial

gasoline

the

is

story

tential followers
as

racing

dog

lovers
of millions.

in

are

as

the

is
Its

as

po¬

numerous

U.

S.—tens

ride..

They've

taxed hotel bills,
impose a tax on
bank checks, -and'increased? trans¬
fer taxes

Jai-alai

on

H.

:

then

frontons

a

pleasant

thrilling pastime; and
enue

a

fine

and
rev¬

producer, that deserves Civic

encouragement.

(It

is

spectator

in

the

sport




a

major
United

racing

could

parks,

broader appeal,

add

mil¬

they

have

a

and their income

growth in general is at the rate of
about 6% a year.
Moreover, with
our

is

.+ ..+K

hiivinr#

-

from tHesjiring of 1958/ Compaf^yvqth.^"a/ ifieair darjjier?{ne^
put-hi'-place1.1 n the /firstJ three .moiiths/'of this year was! up. by niore
than 'one-tenth.

•

Knight have become associated *

with

the

dicate
of S.

new

business

D.

Fuller &

and

syn-

f

respectively,

departments,

« •

'advance"reflected

•

substaiitiaiT increases

''

%

in

,

.Nationwide Bank Clearings Down 0.7% From-1958 Week

Co., originating•«
investment*

and

The

public and residential construction expenditures; "offset partly by
a 5%
decline in private nonresidential activity.
" %

,

v

*

•

•

'

%; Chicago

UTICA, N. Y.—Max Philipson & % f:

R. C.

steadily

increasing national
(the 35-hour week is very

much in

the news)

and consider¬

With Walls Associates

■;*

New York

Form Max Philipson Go. %

Boston

.

■

$12,404,224,056 $13,859,377,794 —10.5
■ 1,189.042,961
1,012,639,311
+17.4
|
1,148,000,000 , '. 1,085,000,000
'iL
+ 5.8
721,601,087.
716,148,027 '/+ 0.8 /;+:■■-. ;V

1

Philadelphia

,%

stocks.

dous crowds drawn
by dog tracks
alai frontons. Dog tracks
are much less
costly to build than

leisure

Here

f;

consumer
consumer

outstanding vol[
iyionthly construction outlays, tended to level off in the first /jj,
quarter, on a seasonally ad justed, basis,following ;a steady iipsvving'-:

S. D. Fuller & Co.
Thompson D. Berry and Peyton

much

and threatened to

horse

Dog

hound's tooth!

in
m

-

after

a

increase
increase

New construction during March continued in

underwriters

and Jai

racing.

b

A
rice
buying. A rise
increased sales of most

profits is indicated by the

corporate

flip
the

Bank clearings this week will show a decrease compared /
dealers,
it
was ; announced v by
with a year ago. Preliminary figures compiled
the same,
The Federal tax is 3d
by the "Chronicle"
Stephen D. Fuller, senior partner.
based upon telegraphic advices from the chief cities of the
a gallon (Congress has been flirt¬
country,;
Messrs.
Berry and Knight%will indicate that for the week ended Saturday; April 25, clearings for "
ing with a 4%d charge) and New
make their offices at .the firm's +
all cities of the United States for which it is possible to obtain
York State tax, 6+ not counting
headquarters
at
26' '■< Broadway, w
the 3%
sales tax in New York
weekly clearings will be 0.7% below those of the corresponding
New York City
•
•
week last year.
Our preliminary totals stand at $24,563,806,617 ,V„
City. Why should motorists be so
A branch office is maintained ?
against $24,735,230,992 for the same, week in 1958. Our comparaunjustly penalized?
by
the
Fuller
organization; in * tive summary for the
principal money, centers was. as follows: ~ % +
In New York City they've just
Montgomery, Ala.
v':.%
Week Endcil April 25—
'
' 1P.VJ
' 11K5H
v %
slapped a 10d tax on each taxi
In

time, weighed in, and examined
by veterinarians both before and
as

J/

has

pay and some increase in
advance.
Proprietors' income

ume.

,

,

race-

the

line with
line with

lines of business.

,

before

to

in

,

hours

contributing

8rivanned, in
advanced in

Philipson, Secretary and As--%
sion, payrolls and economic weN lions more.
sistant
Treasurer; and John M.
•
•
fare; as a highly popular spectator
Hubinger, Vice - Presidents Max 7
Many people have suggested
sport, and as a dynamic tax rev¬
Philipson and Meyer Philipson are
legalizing off track (horse) bet¬
enue producer?
There is no con¬
partners in Philipson and Com- %
ting as' a revenue builder; but
flict between horse and dog tracks.
pany, with which Mr. Hubinger is
putting up pari-mutuel parlors in
Their seasons are different, many
also associated.
Times Square or in Buffalo is no
dog tracks run at night attracting
solution. It wouldn't pick up much
an
entirely
different
clientele.
Form Shoemaker & Go. %•'
revenue and it wouldn't eliminate
Further, whereas there has been the
"bookie." For the "bookie" is
In Oklahoma City?
an occasional
whisper about not
only a private (and illegal)
OKLAHOMA CITY,lokla.—
jockeys deciding in advance the
agent for placing horse wagers; he
Winner of, a horse race, there is
Shoemaker & Co., Inc. has been ?,;
has a much larger trade in
betting formed with offices in the
no record of collusion of that sort
City
on
baseball, football, basketball
National Building to engage in a
among hounds! You may bet on a
and
wrestling
and
there
have
slow greyhound but you'll never
securities
business.
Officers are %
never been
pari-mutuel windows
fcet on a crooked one!
All new¬
William R. Shoemaker, President; %
for these.
born greyhounds (if they're ever
and L. J. Cole, Secretary-Treas¬
Most of us who can
to race) must be registered with
spend any urer.
Both were formerly with
time in Florida
the National Coursing Assn.,
during the winter R. J. Edwards, Inc.
and,
have been amazed at the tremen¬
cm race
nights, the dogs are taken
expan¬

em-

adjustment, with higher rates of
ployment

the

Berry & Knight With

buy a pack of
cigarettes in New York City today,

8£; Nov/
the City

will

firm./

you

The Federal tax is

v,

the New York Stock

7th

v

1958—5V2 %

a year ago.
...
.:~-r..v:
++:;/...:
The expansion of output in the first quarter was accompanied
by. a corresponding rise in national income. Compensation of em- '%•
ployees increased 2% over the fourth quarter rate, after seasonal
p

Langley & Co., 115 Broad¬
New York City, members of

May

volume reached in late

v.

•

above

W. C.
way,

maintained at the high

were

Why ail this Company, Inc. has b^ri ' formed
desperate fiscal fishing for income, with offices in the Mayro Building ;!
Why then has dog racing been when legalized
dog racing might to engage in a securities business/'
so
neglected?
Why don't more deliver, in time, $75 million a Officers are Max Philipson, Pres-%
states legalize it as a significant
year in
new-found tax money? ident; Meyer Philipson, Treasurer;

clean

-

vanced and most major groups shared in the expansion. Sales of
durable goods have risen in recent months to exceed the previous
dollar high. In nondurable lines, sales in the first three months

W. C. Langley Go.

in
fol¬

us,

have

here's what you pay—29(* a pack.
But of that over 50%
goes for

owners

$465 billion.
This compares with $453 billion in
quarter of 1958 and $427 billion in the initial'period a

was

hound, teamed up with pari-mu-'
tuel betting, has created an im¬

out-of-statjers.

ing and licensing fees from dog
racing flow into the Old Age As¬

from

,

year ago.

of the burden.

some

extended in March, the Office
the April issue of the "Survey

around

of

the final

the

let

was

above the average for the first three months, when Gross National
Product is estimated to have reached a seasonally adjusted annual

high-

by

we

upswing in business

Current Business," monthly publication of the Department of
Commerce.
As the spring quarter opened, national output was

•

tions for

record!"

contribution

Failures

an

running for her. in Massachusetts
revenues from pari-mutuel wager¬

—2 to

Index

Production

of

This unique quadruped, the grey¬

groping for
tax
income
ing income from its percentage new
by
Governor
of the pari-mutuel dog track bet¬ Rockefeller, and
Mayor Wagner
ting "handles." For instance, in of New York City, wonder why
the 1957-58 season, Florida real¬ dog tracks have not been
wel¬
ized total dog track revenues of comed long since. We're sick and
$14,381,995.
For
Massachusetts tired of having gasoline and ciga¬
many
a
genteel little old lady rettes the whipping boys for each
today is rockin' out her sunset new fiscal urgency in, our State.
years in contentment, just because To quote an earlier Governor (Al
a
few hundred dogs keep busy Smith), "let's have a look at the

revenue to

Industry

Business Economics reports in

of

Yo)k City could
probably support a $10 million
Canine Coliseum, enclosed perhaps
for year-round coursing.
When so many millions of peo¬

different

47

Auto

Business

sumer demand, a significant increase in business fixed
investment,
portant industry in the nation, a
and inventory rebuilding.
thrilling spectator sport and tens :
The rise in plant and equipment expenditures, though not yet
important point. The tax revenue of millions in revenue for a grate¬
derived by a state from greyhound.
large; reflects a reversal of the downward movement which had
ful group of states.
If it's good
speed-merchants is quite painless for them why isn't it good for New
prevailed Tor more than a year. This has been a factor in the
f{
taxation. It is collected from peo¬ York
State?
Or
lor
Michigan,'-, enlarged flow of new orders to durable goods manufacturers. % rO-tfl
The upward movement in personal income raised the total
ple
at
leisure,
with
spending which has been having a tough
"
to a seasonally adjusted annual rate of $368 V2 billion in
money to spare; and a high per¬
time meeting payrolls? As a mat¬
March, V
centage of revenue received actu¬ ter of fact a Bill
$3 billion above February.
Most of the increase stemmed from
(#1893) was
a
rise vin employment and from/continuing advances in wage
ally comes
from
non-residents. introduced at the recent session
For
rates.
For the quarter, personal income averaged $365 V2 billion; you
see,
dog racing is an of the New York legislature that
f4
eager tourist attraction.
Arizona would legalize
$6 billion more lhan in the fourth quarter of 1958.
>
greyhound racing.
With the uptrend in personal income, consumer buying adregards it as among its top attrac-.
I

Which

and thousands
t h

from

Trade

Price

states!

running com¬
petitively —
of

benefits

It

licenses

car

5 5,0 0 0
are
capable of

They

Kingdom.)

Carloadings
Retail

Commodity Price Index
Food

and

Production

Electric Output

any

localities
ing up to his billing as man's best by expanding payrolls, and local
friend. We have millions of dogs spending for food and supplies,
in the United States, and 400,000 maintenance, advertising, utilities
and
of a special
by attracting the spending
money
of thousands of visitors
breed
called
from outlying or remote areas. At
greyhound. Of
one dog racing meet at Mile High
this swift and
Kennel Club, in Denver, Colorado,
streamlined
a check in the parking lot showed
breed, about
More and

Steel

%;

State of Trade

Market.

COBLEIGH

',

The

March

Building Permits at Record Level

The .total+value of 1 building

permits for 217 cities in March C
$710,994,544, reports. Dun & Bradstreet, Inc.
This
Was,-the., highest level for any .March on record, exceeding the 7
previous high of $564,046,356 of March last year by 26.1%+The% /,
current total was up 45.3% over the prior month's $489,469,606." +

y

amounted

to

New York

for
was
v

-

the $53,723,840 of a year ago.

+

The level

5''

outside centers in- '+
$614,405,217. -This- compared with $510,322,516% ,

valuation
to

came

year

for

month for

v

building permits totaled $96,589,327 in March
over

above the $85,789,462 of February.
of permits issued in 216

12.6%
The

March

last

City

rise of 80.0%

a

a

an

gain of 20.4%, and with $403,680,144 in the prior ),
I
,
,
m *
p!

increase of 52.2%.

•

.

.

Building Costs to Increase Sharply

1

^

Although construction costs advanced only 1% in the.past. six. J'
months, probably due to cold weather and the off-season character • 1
-

of the

market, costs are expected to be 4% higher by next April., 5
Commenting upon/ the construction cost rises, Myron L+c"
Matthews, manager-editor of the 1959 edition of the revised:
Dow Building Cost Calculator, an F. W. Dodge Corooration service',;.^said: "The prewar $7,500 house which costs $19,200 today, Will
fir
probably carry a price tag about $768 higher by April 1960.
/

"

,,

-"The 1941

.

This means
work $1 did before. Twelve!,
months from now the buyer will have to increase the amount to
f...
ATLANTA, Ga.—D. Allen Mar- V
$2.66," added Mr. Matthews.
tin has been added to the staff of
(Special to The Financial Chronicle)

Walls

Associates,
Building.

Inc.,

')■

Candler

With Wyatt, Neal
(Special to The Financial Chronicle)

ing that we are a nation of dog
Ga. — Richard
P.
ATLANTA,
lovers, the pleasant pastime of Harbour, Jr. has become connected
greyhound
racing
with
may
be
re¬
Wyatt, Neal & Waggoner,
garded as virtually in its infancy. First National Bank
Building.

/

building dollar is

now

worth 39 cents.

the buyer must put up $2.56 to do the

increase applies to

non-residential buildings, such as rj>
should not forget that 'construetion packages' are more complete than those produced 18 years ,j
ago," Mr. Matthews stated.
I
•
- -rf
"The

same

offices, schools, hospitals, but

Of the two

we

major components of construction measikred (ma-. $7
has again ex- ->. )

terials and labor at the site of construction), labor
hibited

the

greater strength.

In the six months

building material prices to builders have

ending April 1,
in 93 of

i

not changed

Continued

on

page

35

+

Volume 189
V;*'

■

"■

Number 5842

■:

-

''

''

■

.

•'

'

■

'

market price that may dilute present stockholder investments (since
the market price of

that, to the extent that cash proties is directly related to earnings)
ceeds from their sale has been
and
mostairline, equities, even ignored or minimized in airlines'
helped by our bull market, are, cash flow projections, to the same
like crocuses in early spring, just
extent they can be virtually ignow timorously poking their heads nored as a critical factor in the
up. above .'book value; or (3) insuccess of the airlines' financing
during the long suffering aircraft of the jet age. In most projections,
manufacturers (who at "the pres- they are now a "Lucky Strike
ent level: .of orders have not yet Extra"—a
real object lesson, in
recouped the tremendous devel- rapid and block obsolescence. To
opment and tooling costs of the the manufacturers who may have

By T. CARL WEDEL*
,

An airlines financial critic evaluates present and future pros¬
r-.v

pects for financing jets which he finds somewhat analogous to

Broadway show's

a

success before opening night.
He
borrowing needs of $1.4 billion—$600 million

'
.

Xt notes

jetiwill depend
erate necessary

would not even have the comfort
and protection of a credit agreement with the airline which would
normally include provisions limiting future debt and leases and
requiring the maintenance of minimum working capital, etc.—which
the direct lender would have,

ever, for the purposes of this discussion, it is pertinent to point out

equity securi-

-

Vice-President, The First National City Bank of New York

believes airlines'

7

'•

•;.

Jet Age's Financing Prospects
Just Before Opening Night

judging

(1987)

The ConiXfiertial and Financial Chronicle

.

.

'

in

sustained healthy earning power to gen
retained earnings or attract equity cash:* Mr.

,

lieu of cash for the last

Resistance

nomically,; sound

Wedel notes:

(1) financial community's> resistancetolease
method of financing^
:j(2)L jet age c airb e ^
bat need hot be so For shareholders; (3) airline
equities today
are beginning to sell above
book; and (4) it is premature for
airlines to order future needs

now

power

m the far, more preferable "free en.......

.

terprise

,-r

:

.

fair when
can furnish

nor

solution.

The manufac-

a

about

word

probably

will

con-

"third

man"

into

the

situation.

Thus lease financing has not been

leasing-

ingredient of substance in the
airlines' jet financing programs—
and where it has been used, total

parody on a popular song goes "If
you're feeling kind of Ion
lonely and
you don't know what to do—have

an

c

„

Method

ably costs the airline more in the
long run and injects a superfluous

Why Not Lease?
Now

and

resisted

quence.

seem eco¬

Lease

tinue to resist the lease method as

on

■inese' choices

to

By and large, therefore, the fi¬
nancial community has strongly

tur^s we have talked to say, with a baby, pretty baby." Haunting lease rentals payable will unreason; we ar® n°t hi the the background of many airline doubtedly be considered by credit
&°S5ai2 business and we financial discussions today seems analysts as the equivalent of debt

•

i

to

be!

sounds

to (a) write

,„.:y

will

night- .before
its" dress
hearsal

ing

•

re¬

Haven*; )-(b)

i

the

reception of
the

same

*

<

;;pre-"

:

abil¬

ity of the pro¬
the V

of

'

show; to pay
all his
bills,
without offi-

T.

Carl

....

Wedel

,

dally having the right to
his

check

books

the

or

see

true

piggy bank. This critic is
slightly different from the average
theatre critic since .he has
not only paid lor his seat, but
he also has invested quite heavily
in the
show.
Therefore, he may
not be too objective and I would
say that no critic approaching an

hoped more
Incidentally,

opening
night ever
fervently for a hit.

I believe that

who

invest

called

Broadway those

on

in

show

a

are

often

this is prob¬
ably where the resemblance be¬
tween
bankers and investors in
a
'

"angles,"

so

play must end.
As he awaits the rising of the

opening night curtain, an airline
financial critic's
thoughts about
the forthcoming show might be
put into the form of three major
questions. Until the show is over,
of course, the critic must supply
own answers—based upon the

his

limited

f

definitive
hi1?
ms

arithmetic at
arithmetic at
eVen

statistics

and

disnosal and his
disposal ana nis

ball.

crystal

limited

more

The questions are:

Has the $2.6 billion equip¬
portion of the 1958-62 do¬
mestic
trunk airlines'
transition
(1)

the

jet

age

jn

been successfully
And, if so, how?

the

„

-

-

,

DC-7 or Super Constellation was
considered the equivalent of $2,000,000 invested in TJ..S, Treasury
Bills* The future of all piston-

the

trunks

magnitude of

The

carriers.

seas

America

the

of

elimnsed

long-term
airlines j today is

these

probably
under
$500,000,000
(which represents the all-time
debt thus far in their dy¬
namic history), and theit com¬
bined book net worth
a key

enterprise

the airline's balance sheet andk

annual lease rentals will be con-

ing trouble with your bankers and sidered the equivalent of fixed
you don't know what to do—lease debt maturities in relation to casht
airplanes, pretty airplanes."
It is a pretty tune and a beguiling
idea, • but, if the average entrepreneur, or manufacturer, who
your

generation. The credit of a few
airlines, of course, is so strong
that their leases can be, and have
been, successfully financed at low
rates and without recourse to the
manufacturer or equipment owner
—but this is the exception, not the
rule. Most airline credit agreements, in fact, put certain limits

chants it is taken seriously, he is
likely to discover that he is heading for trouble with his bankers,
for he usually must arrange to
borrow nearly the full amount of
the cost of the planes he wants to on the amount of lease rental obbuy, using as security the rentals ligations an airline can incur,

due from the leasing airline. Such
a lease, of course, is viewed by the
prospective lender as "only as
good *as the airline's ability to
generate the cash to pay it."
Chances are that this airline is
,

Leasing for special situations
and/or to take care of peak seasonal loads or to take advantage
of lucrative interchange opportunities is another story —and
viewed more sympathetically by

already having trouble inducing conservative lenders.
Financial Success

to buy the needed airplanes
1 aiaaoxicai financial success
(which is probably the main rea- - Question (2)—Will the jet agCi
son it grasps at the "straw" of be a financial hit?
leasing). A third Party (the proAnswer: At this moment in his-

This advertisement is not and

tw

t

for^ight
CJ.yStai

Is under

no

ball

probably

■\

■JO

-

answei- demands mora
than even a jet powereiJ

Continued on page 2%

circumstances to be construed as an

offering

of the securities for sale or as a solicitation of an offer to buy any
of such securities. The offering is made only by the Prospectus.

y

NEW

April 24,1959

ISSUES

economy—was

probablv slightly under $850,000,000

at

of 1958.

the end

/

^

The Dorsey Corporation

point, I might, as well
that we lenders have not

this

At
admit
,

_

^e.^.
i-. io ~
.fitting to lend this $ .4
as the cold arithmetic mig t
Brst glance. Since,fhe 2(ir—
Unes

all

fpr
industries

compete

mugt

with

other

which

are

we

have

we

32,500 Shares

our

I

asked to

told .them,' in

effect, that we will lend them, on
the average, something under $1.50

($50 Par Value)
With Common Stock Purchase Warrants
.

Each Preferred share carries two

$1*00 bf..b6f>Jt
they, themselves, can .ante up.
f?r

Common

Stock

at

$12

through

Warrants, each for purchase of one share of
April 30, 1969, the expiration date. One

after April 30, 1960.

immediately and the other on and

Warrant is detachable

Earning Power Is a Must

Preferred Stock Series A

69c Cumulative

money

in

•

(Note: Source of equipment costs

nresent net

then we have promised (or

cial hit?

j if substantial,

can .they
'cessfully financed? *:•'

in

the few

be and,

i

asked) to lend them about $1 billion of new money when their

be sue- present

$500,000,000

subtracted

from

of

is

debt

the picture.

let's

what

see

successfully

and

some

conserva¬

tively financed?—And, if so, how?

-iS'u

.i.

.

!?le

exceptions, it has been—if pro¬
jected cash generation (something
above
the
$200,000,000 plus of
estimated 1958 cash throw—depre¬

ciation

plus earnings) is realized
during the next five years. Since

April,

(where the Cheringoff) most major

1958
ton. Report

left

airlines have by now arranged
•An

Wings

address

ciub,

working capital and cash must be
found to close this gap. Thus sus¬
tained healthy earning power dur¬
ing the transition years to jet operation continues to be a must for

by Mr. Wedel before the

arC,

City.




have set certain mini-

airlines!

The

other

choices

Obvious: (1) cutting back jet

orders;

(2)

selling

equity

at

a

Per Share
from such of
in such State.

Blair & Co.

mum

the

York

we

.

Copies of the Prospectus may be obtained in any State only
the several Underwriters as are registered dealers in securities

vitally needed por¬
tion of the airlines' "ante." Addi-

to

New

Price $11

duce this still

working capital standards
which, in many cases, are above
the present level of the airlines'

•

($1 Par Value)

take

tionally,

150,000 Shares

COMMON STOCK

To

down the whole pot they
need; the airlines obviously must
Answers
might be:
still increase their present equity
Question (1)—Has the $2.6 bil¬
substantially—and
only retained
lion 1958-62 domestic trunk air¬
earnings or • the public sale for
lines'
transition to
the jet age
cash of equity securities can pro¬
been
Now

Per Share

cases

where we have not yet been

"

.

.

(3) What will the airlines' further jet equipment needs

promise

Price $50

Incorporated

;i'V'

Bache & Co.
The First Cleveland

possesses,

,

of any

figurd in determining how much
credit any company can get in
free

on

-regrettably,*I don't possess). How- line's lease — since this lender

peak

a

which

telling power of a mystic (which, stitution to lend against the air-

from

the total

that

fact

debt

the

he

ran

refrain

engmed aircraft, is, ot course, a spective lessor) would, logically,
fascinating story in itself—whose then have far more trouble mductelhng^demands at least the fore- ing the same type of financial in-

airlines have
accomplished in f'luring" this sum
from the conservative lenders of
which

j0b

own cash flow projections,

similar

little like "If you're hav-

gone are the days when every its hankers to lend money directly

$14

domestic

ba?oC .Will the jet age KeP°r
wnu?herinf°" be a finan.(2)
j

lines'

billion range
plus the
u s. Fla® international and overke

the

finance,

ment

financed?

wju

for

economy

Raises Three Basic Questions

i to

...

yawhnes.. i •,;'*•

J ; it looks as though the amount
all which- may- have t"0 be borrowed
size

his

of

forn,.their; .jets
equipment

ground

,

two *shows;

ducer

to -pay

related

•

pro¬

ducer's next
and \(c)
diet the

need,

;

open-

in'iNew

predict

;

' .With a "little bit of luck" at the
after "taking ;.»■ into "!"• accountthe earning and cash generating power
funds they feel they can gener- level and, helped by the willingate internally—from depreciation, ness of the financial community
retained
earnings, and;-* far less to stretch the rubber band of the
v importantly,
sale
of
obsolete debt-equity ratio concept a little
flight equipment.;>In the domestic* beyond the traditional l-to-l top
airline field, a few strays/'still limit,-the airlines, on the basis of
roarn the celestial corral but, untheir present arrangements, should
like the parable of the sheep in " be able to finance at least the
the
Bible, this discussion' will openings night* and, say, the first
concern itself'basically^iwith ^the
l90.^^P^iJ^nces' of the jet agg.
majority of the sheep safely in Of .great "comfort to a critic makthe fold since the strays who still ing such a .prediction today is the
must 'arrange their financing will realism with which "cash proceeds
riot affect materially the overall from the sale of piston aircraft" is
pattern. •
finally .being, handled in the air-

Broad

a

^

and

review of

a

show the

way

a
a

Sellers, Doe & Bonham
Corporation

The Commercial and

8

Financial Chronicle

.

Thursday, April 30, 1959

.

.

(1988)
amounts of

substantial

Our Reporter's

Dealer-Broker Investment

Recommendations & Literature

I

to

has been on

of

Annua!

Reports—Review—W. E. Hutton & Co., 14 Wall Street,
5, N. Y.

New York

Bond

Market—Review—New York Hanseatic Corporation, 120

Broadway, New York 5, N. Y.

Burnham and
Company, 15 Broad S|meet, New York 5, N. Y. Also avail¬

Buraham View

—

Monthly Investment letter

Foreign Letter.

able is current

Capita! Funds — Compilation
banks in the United States

—

-

to

&

Reports—Appraisal—Francis I. du Pont

Co., 3 Wall Street, New York 5, N. Y.

Japanese Stock Market—Study of changes in postwar years—
In current issue of "Nomura's Investors Beacon"—Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y. Also
a review of the outlook for Plant and Equipment

available is

Japan for 1959 and brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki
Cement Co. and a survey of the Steel Industry.
in

Expenditures

Japanese Stocks—Current

York 7,

New York.

Companies—Comparative figures on assets, oj)erating income and life insurance in force for 40 representa¬
tive stock life companies—Robert H. Huff & Co., 210 West
Seventh Street, Los Angeles 14, Calif.
York

City

Bank

Stocks—Comparison and analysis for

first quarter of 1959—Laird, Bissell & Meeds, 120

Broadway,

New York

5, N. Y. Also available is a study of the economy
at the first quarter's end.
Oil Company Financial Statements—Comparative figures—Carl
H. Pforzheimer & Co., 25 Broad Street, New York 4, N. Y.
Also available is a memorandum on Consolidated Natural

market

Oil in Canada—Facts and figures—Wood,
~

40 Wall

Barium Steel Corp.

N

Memorandum

—

—

York 4, N. Y.

Broad Street, New

spective offering into registration
with the Securities and Exchange
Commission

continue to
for seeking

a

Businessman—Suggested issues for investment

—Ross, Knowles & Co. Ltd., 25 Adelaide Street, West, To¬

ronto, Ont., Canada.
Projects—Progress report—Smith, Barney & Co.,
20 Broad Street, New York 5, N. Y. Also available is a re¬
port on Chemical & Pharmaceutical Stocks.
•

«

—

York

Oppenheimer & Co., 25

'

Searight, Ahalt

Manufacturing Company.
Alco Oil & Chemical

&

and Anderson-Prichard Corp.

r '

on

& McKinnon,

Also available is a report

W. II. Grace & Co.

Craig Systems—Analysis—Nmvburger,
N

New York 5

Street

Ex-Cell-O Corp.

Report

—

Loeb & Co., 35 Broad

Y

Co. plans to raise $50
through the sale of first,
and refunding mortgage bohds to
mature in 30 years. This
issue

A. M. Kidder & Co., Inc., 1

—

Street, New York 5, N. Y.
Farrington Manufacturing Co.

Wall

Wall Street, New York 5,

N. Y.

Tite Industries, Inc.

-

—

analysis—
York 5, N. Y.
Laird, Bissell & Meeds, 120

Progress report and

Stanley Heller & Co., 30 Pine Street, New

Analysis

—

—

Broadway, New York 5, N; Y.

Haupt & Co., Ill Broad¬

N.lY.

New York 6,

Mercantile Bank

—

Study

—

Corporation—Analysis—Schweickart & Co.,

Chemical

Broadway, New York 6, N. Y.
Illinois Central—Data—Herbert E. Stern & Co., 52 Wall Street,
York

New

Also in the same circular are data on..

5, N. Y.

Corp.—Bulletin—Bache

Iuterchemieal
New York

& Co., 36 Wall Street,

Also in i.the same bulletin are

5, N. Y.

Kratter Corporation

data on

—

?—

Troster, Singer & Co., 74

Corporation—Analysis—Edwards & Hanly, 100
Street, Hempstead, N. Y.

North Franklin
Market
-

Basket—Memorandum—Bateman, Eichler

South Spring

Pierce &

& Co.,

453|

Street, Los Angeles 13, Calif.

Mercantile National Bank of

Motorola Inc.

York

&

—

Company Inc.—Bulletin—De

Memorandum

Chicago

Company,

same

31

circular is

bid

the

of

about
$100 away from the
was

Close

Too

Trees?

to

the experiences of
people who have been getting
away from New York and moving
around
the
country,
sentiment
among
institutional investors is
noticeably more cheerful out of
One

wanderer

such

from

a

southeastern

whirl

than

now

the

discovered

area

much broader interest
market

coming

around

a

the bond

m

metropolitan

prevails in the

&

the

pressed

area.

In fact, he ex¬

opinion

in

it

seen

several

feeling

that

than he had

yeajs.

Investment managers for insur¬

pension

funds

he said, were

of the

companies,

and

trusts,

it

is

time

start

to

opinion

that

taking

real close look at things,

to

and

a

remember that it is

diffi¬

cult to catch the extreme lows.

W. G. Espy Opens

—

PANAMA

Espy

Witt Conklin

.

CITY,

Fla.

engaging in

a

—

of

W.

G.

securities

.

18 North

business from offices at
Oak

Hemphill, Noyes & Co., 15

is

Avenue, under the firm name

W.

G.

Espy Investment

rities.

,

:

Secu¬
■

St. Louis—Analysis—du Pont, Homsey

Milk Street, Boston 9, Mass. Also in the
analysis of United Artists Corp.

an

Company—Annual report—Ohio Edison Co., L. I.

Wells, Secretary, Akron 8, Ohio.
Gas

Sold

and

Electric

Company

—

Annual

report

—

Pacific

Market Street, San Francisco

6, Calif.
Puget Sound Power & Light Company—Annual
Power & Light Company,

request

report—Puget

Frank McLaughlin, Presi¬

120

Troster, Singer & Co.
Security Dealers Association

Trinity Place, New York 6, N. Y.

Oil

—

Company of Indiana—Annual report—Standard

Oil Company, 910

South Michigan Avenue, Chicago 80, 111.

Sterling Drug Inc.—Report—Harris, Upham & Co., 120 Broad¬
way, New York 5, N. Y.
Also available is the current issue
of "Pocket Guide"
ous

containing lists of selected stocks in vari¬

categories.

Sundstrand

Teletype NY 376; 377; 378

Your

Memorandum — Model, Roland & Stone,
Broadway, New York 5, N. Y,

Royal Dutch-Shell
Standard




rate

coupon

The

Judging by

in the

dent, 860 Stuart Building, Seattle 1, Wash.

HAnover 2-2400

same

99.8299

at

64 cents per

Company—Analysis—Loewi & Co. Incorpo¬

Street, New York 5, N. Y.

Sound

74

the

winner.

the

as

Dallas—Memorandum—Rauscher,

Gas and Electric Company. 245

Members New York

$100 piece of each other and
fixed

Co., Mercantile Dallas Building, Dallas 1, Texas.

Aluminum

Pacific

on

were

of 20 cents

per

ance

Brochure

Trinity Place, New York 6, N. Y.
Lily Tulip Cup

Ohio Edison

Prospectus

bids

range

seemed to be better

G. I). ltoper Corporation.

New

Bought

a

29

Broad

Class A Stock

bunched within

hack

Carothers & Company, Inc.,
Building, Dallas 1, Texas.

Gulf Coast Leaseholds

remaining five

town.

Great Northern Railway—Review—Ira
way,

indicated yield of 4.55%

an

the Double A rated issue.

on

—

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

Corporation

lor-bids early

up

top tender.

Memorandum — Shields &
Company, 44 Wall Street, New York 5, N. Y.
Fedders Corp.—Memorandum—Van Alstyne, Noel & Co., 52

Morrison-knudsen

The Kratter

Gas

&

million

runnerup

rated, 225 East Mason Street, Milwaukee 2, Wis. Also
same circular is an analysis of Thomas & Betts Co.

financial institutions

part

all

Broadway, New York 4, N. Y.

2

Mirro

For

short

Meantime,-Public Service- Elec¬
tric

The

.

Corp.—Memorandum—Richard Bruce

Co., 26 Broadway,] New York 4, N. Y.
^
..
Alden's, Inc. — Report—Reynolds & Co., 120 Broadway, New
York 5, N. Y. Also available are reports on Alco Products

fund

bank debts and to finance in

buyer

America—Report—Dean Witter & Co.,

Montgomery Street, San Francisco 6, Calif.
Clark Equipment Company—Report—Thomson

&

O'Connor, 115 Broadway, New York 6, N. Y.
Alabama Gas Corporation-r-Report—Georgeson & Co., 52 Wall
Street, New York 5, N. Y. Also available is a report on Joy

Pro¬

used to

he

•

Champlin Oil & Refining.
—

next.

probably will be

A

4, N. Y.

Cclanese Corporation of

•

Memorandum

26

May

—

Revenue Bond

Academy Life Insurance Co.

plans

of competi¬

opening

on

will

ceeds

and

recently

the

bids

in June.
Company—Report—Blair & Co. In- Bidding Is Brisk
eorporatcd, 105 South La Salle Street, Chicago 3, 111.
Public
Service
Co.
of "Colo-*
Bergstrom Paper Company—Report—The Milwaukee Company,
rado's $20 million of 30-year first
207 East Michigan Street, Milwaukee 2, Wis. Also available
mortgage bonds, put up for bids
is a report on Unilever N. V.
on
Boise Cascade Corporation—Analysis—Pacific Northwest Com¬
Tuesday, brought out tenders
from'/a
total
of
six
banking
pany, Terminal Box 3686, Seattle 24, Wash.
f *
Bullock's Inc.
Analysis — Hill Richards & Co., 621 South
groups.
The successful bid, 100.47, called
Spring Street, Los Angeles 14, Calif. Also available is an
analysis of Thrifty Drug Stores, Inc.
' vr*?-* for a coupon rate of 4% % and
reoffering at a price to return the
Cameo, Inc.—Analysis-—Simmons & Co., 56 Beaver Street, New

Hooker

Y

for

tive

Distilling

B. Bean

James

Glidden Company

up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 20-year period —
National Quotation Bureau, Inc., 46 Front Street, New York

4.

disclose

in

as

borrowers
their plans

New York 5, N. Y. Also in the
same
circulars are reviews of McGraw Edison, Northwest
Airlines and San Diego Gas & Electric Co.
*
V

Gundy & Co., Inc.,

Street, New York 5, N. Y.

of recently
undertakings is Consol¬
largest

idated Edison Co. of New York's

call

the general situation,

mill & Co., 34 Wall Street,

Over-the-Counter Index—Folder showing an

Portfolio for

well

as

corporate

spell.

a

Broadcasting-Paramount—Review—Shearson, Ham-

American

Glass

Gas Company.

Ahead

Ones

the

disclosed

45

Life Insurance

Big

Among

construction plans.

Information——Yamaichi Securities

Company of New York, Inc., Ill Broadway, New

New

least for

at

—

Bank Building, Dallas, 1, Texas.
Cement Industry—Analysis with particular reference to Penn
Dixie, Marquette, Pacific Cement, American Cement and
Whitehall Cement—Blair & Co. Incorporated, 20 Broad St.,
New York 5, N. Y.
Does it Make Sense to Buy Stocks?—Booklet of guideposts of
sound investing, in question and answer form — New York
Stock Exchange, 11 Wall Street, New York 5, N. Y.
Dallas, Republic National

First Quarter Earnings

ties

the

in

holds

to put away
securi¬

funds

could turn to fixed return

In spite of

condition

it may be that

bulls and

with

people

by

droves

the

lor

and, far from being

in

secondary

market,

stock

months, still manages to

inducement.

This

of capital funds of 100 largest
Republic National Bank of

ap¬

yields
being fixed on new issues, they
are still disposed to hold
out for
more

expansion purposes.

eke out .$75 million of new 30-year first
average highs. But the going and refunding mortgage bonds.
activity has been
appears to be getting a bit tougher
the least. Investors
The big utility put this pro¬

say

have the "bit"

attracted

curred for

new

such

here

fleeting to

a goodly portion
of
projects represents efforts to
fund short-term debts already in¬

Two

which has
been giving the investment mar¬
ket keen competition for many

"base." But up

new

a

the

of

indication

seeming

proach

debt

ahead.

weeks

Naturally,

their

things

had

the

of

4

been

has

there

have

in

capi¬

new

sale

the

such

way.

The

occasion

On

they

through

securities

Institutional

issue field.

new

far

weeks.

some

pleased
send interested parties the following literature:

it is understood that the firms mentioned will be

the demand; for
investment securities
the sluggish' side for

term

Report

portfolio men once more feel they
can
afford to be choosy and so

also,

direction
fixed

the

degree in that

to some

even

field,

exempt

tax

the

Outside

and

tal

Corpo¬

42

Steel

Corp.—Circular—Peter P. McDermott &

Broadway, New York 4, N. Y.

Co.,

at a

Sejlt(J)day

Satisfaction

Corporation—Annual Report—Sundstrand

ration, Rockford, 111.
Wheeling

Complete stock transaction

glance, including: Company, date of
purchase and sale, serial no., capital
involved, dividend rates, due date on
dividends, market value at due date,
taxes, balance due on margin account,
long or short term gain or loss. Wonder¬
ful gift, too. 25 loose leaf pages plus
special pages for mutual funds, sum¬
mary dividends, and total holdings.
5" X 9%" imitation leather c
.
binder, gold stamped

guaranteed.

MALCON SALES
Bex Ne. B,

.

v^ppd.

Dept. NO C-S

Vanderreer Sta., B'fclyn 10,

N.Y.

Number 5842

Volume 189

The Commercial and Financial Chronicle

...

.

have
ones:

With and Without Inflation

a

ible

economic
tern

to

stable

a

to

one

assure

a

in

great fear

'

market advance is not out of line with usual pattern;

-

must

reason

over

that

for the current

the price level is

that

argued

many

fmarket is just completely out of
what

and

shows

relation

no

to

happened

in earlier years.
a great danger of
witness the fact that
stock prices have risen sharply."
There are always some differences,
"There must be

inflation,

and

(3) Federal cash deficit need not always cause inflation,
growth not occur without inflation.

i

fact

learned

nor

in

as

market

development

cession-recovery
there

-

over

periods

differences

are

re¬

nd

a

this

time,

but, in
I

■/
"

'

<

-

•

_

,.

,

There has been ernwinff

concern

rJlfr,i ™nLh

ir:

lSive occulired in the early P°stwar

sp^akin^
the

about
m

i

a

years and with
changes over the

t

fincl that we have had
modest inflation compared
to those periods. Since 1951, the
average annual compound rate of
rise in the consumer price index

tury,

r.

e

writers

have
it

on

cticalfy

pr a

week,

every

i

polls,

the

is

this

the

of

one

greatest
of

concerns

1.3%, while wholesale
prices have risen at an average
annual pace of 0.8%
These re¬
sults compare with a rise of 5%
a
year in consumer prices from
1946 to 1951
and 8% a year in
wholesale prices, and
against a
half century
yearly average of
3.1% in the consumer price index
and 2.3% in the wholesale price

Americans

Dr. B. W.

Sprinkel

today.

inflation

ing

make

that

sure

like

would

I

have

we

a

the

of

understanding

common

to

meaning
of
inflation.
I
am
speaking about a rise in the general
price level of goods and
There

services.

that

tions

is

that

the

one

defini-

many

are

might

be chosen, but
I prefer.
Those

stable
prices
do
not
mean
stable particular prices or
stable
relative
prices,
because
certainly we want relative price

favoring

chances

changing

reflect

to

de-

supply conditions. Also,

mand and

inflation does not mean the ruing

maintaining

of

cost

r

standard ol Iiving.
a

matter

of

many ot u

great

rising

a

ic

th-n

thinly

Furthermore, tliere *s reason to

for

|fut

whether

to

ten

I

years.

is

it

not

asked them
possible that

much

of

two.

we

have

we

bias

a

one

basic

the

be done to stop

what

causes,

inflation, and

implications for the bond market.
-

-

-

had

jiave
know

what

,

,.

try.

.

•/+

no^

is-

accustomed

The

—TTtfce

,

something we bav
to. thioug 01
of the history of. this cou It

most

j

going

lead,

average

The

down.

price
j

record
~

c

in

recent

•

MkmaicipJSB<>nd ForomPi>fnNew




inevitably

" We have

a

tre¬

Do

deficit, and therefore it
true

that

tremendous

we

are

inflation."

at

deficits

one, if those
by
new
through banks.

considerable

financed

are

over

the long-run

are

inflationary;

are

should not be con¬

of inflation? Certainly not!

two, neither of which
during this past year. Def¬

icits

comments

preceding
we

danger
There
good reasons why we should
be concerned.
The Employment
Act and the philosophies of both
major
political . parties
provide
cerned

Yet,

least

held

the
that

mean

headed

that is too easy. Deficits cause in¬
flation under certain conditions,

assurance"

that

pro¬

depressions will not be
permitted to develop. Yet, it was
We have not had as much of that
only in periods of prolonged de¬
type of financing as many ex¬ pressions that prices declined in
pected. Only one-quarter of the the past.
This probably means
cash
deficit
in fiscal
1959
has
that, in effect, we have placed a
been bank financed.
Two, bank floor
under
the
general
price
financed deficits are inflationary
level. It therefore becomes criti¬
provided the economy is at prac¬ cally important that we-also es¬
tical full employment of resources.
tablish a lid on the general price
The economy had substantial un¬
level if we are to prevent longemployment during the past year. run inflation.
This, of course, does
Although current concern about not mean that prices of particular
future inflation appears to be at
goods should be fixed, for it-is
an all-time high, it is interesting
only through fluctuations in rela¬
to note that; most price indices tive
prices that a growing econ¬
obtained

money

longed

,

have

stable

been

for

a

A

year.

omy

careful analysis of current factors

price suggests

stock

of

mands

near

.

of

the

stock

market

rise

follow¬

ing recessions and the size of the
preceding recession. That is, the
greater the drop in economic ac¬
tivity, the smaller the subsequent

should be achieved within

by

the

time

proaching
ment of

icit

the

economy

practical

resources.

played

a

full

a

year

is

ap¬

employ¬

The recent def¬

beneficial

role

in

smaller

rise

in

the

the

year

from

the

moth.

deficit

of

recent

months.

low
of the recession has been Federal Reserve policy has prop¬
greater than the rise occurring in erly shifted toward a tighter posi¬
the same time period following tion in order to prevent excessive
demands.
The sharp
those recessions that were greater monetary

than the last one,
less

than

the

than
tion

resulted

IV

in

drop

past

maintaining price sta¬
in more, rather
less, government interven¬
in the pricing process.
V
over

bility

market.

stock

the

cern

in

The stemming the recession. It is now
economic equally important that a balanced
activity, the greater the rise in budget be. achieved if the infla¬
stock
prices.
If
you
compare tionary forces are to be contained.
recent performance to what hap¬ A small bank financed deficit in
pened in other periods, it is right fiscal 1960 would be much more
on
schedule. The
stock market inflationary than was the mam¬

rise

but it has been
in the stock

rise

rise

presently occurring in pro¬
means that unit costs

Causes

and

Preventives of

Inflation

(a) Causes
What

tion?

are

>;>.■
the

causes

of

infla¬

Here authorities differ.

In

my opinion, the cause of all in¬
flations in this country has been

excessive spending relative to the
productive capacity of the econ¬
omy.
It is absolutely critical in
any

successful

program

Continued

ductivity

This announcement is neither an offer to sell, nor a solicitation of offers to
The offering is made only by the Prospectus,

on

for

con-

page

33

buy,

any

of these securities,
April 30,1959

100,000 Shares

#obfrey Company
Common Stock

of

($5 Par Value)

bias

that

is;

I

can

Price $ 1 3.25 per

it is sizable, but
we
have had a very
inflation, if any, since
that

1951 y

'

Share

Copies of the Prospectus may be obtainedJrom such of the
undersigned as may lawfully offer the securities in this State

nf

Source of

Taylor, Rogers & Tracy

.

ieasons that account for this
concern. One is what I believe

Inc

Bacon, Whipple & Co.
•;

Cruttenden, Podesta & Co,
Dempsey-Tegeler & Co.

Bear, Stearns & Co.

price performance in the recent
recession. Many have argued that

Incorporated

The Marshall

Company

recessions,
prices
didn't decline.
"If they
failed to go down in this recession
as
they used to, we must be
headed
Tjie

for

error

prjces

Kiser, Cohn &

Shumaker, Inc.

McMaster Hutchinson & Co;

other

to

a

js <jue

typically

hyper-inflation."
to

did

Rodman & Renshaw

Straus, Blosser & McDowell

Bond Company

George K. Baum & Companj

McDonald Evans & Company

Taussig, Day & Company, Inc

The Bankers

the fact that

not

decline

-n pag^ recessjons> The only times

i,.fn„

we

had price declines were when

York,

we

had depressions of which there

*

\'

Loewi & Co.

to be a misundeistanding of the
compared

n

Review of Past Record
,V-,
'
.
.
.
Inflation, in this countiy ls

deficit

a

percent per year, we
no
inflation. I do not

..

finally point out some of the

be

per-

Current Inflation
Concern
I would like first to review the
^ ** is true that we have
record of inflation as defined and not had much inflation—and not
make some comparisons. Then I everyone will agree with thatwill consider sqme of the sources
why the current concern over
of the present concern over in- inflation. 1 here are at least tnree
flation,

increasing production. Production
rose just as rapidly as did spending%
v..
V '
.;

one

standard of living.

been

still

>that

fact

one-half of

as

moderate

instead

better, etc. So

new.

is

insurmountmake
lete

the

for

If

cjiffjcult.
as

They
should not
call a rising standard of living
inflation. We are talking about a
cost rise in maintaining a given

can

ness

cause

speculate
certainly

are

clothes

the

quality

.

busi-

drive, they drive Cadillacs instead
of Chevrolets. They have 15 suits
eat

is

out

technical

the

■

cen^

of

quite in line with what
happened time after time.
Typically, stocks go up as busi¬

largely

is

problem

living better and they
always
say
"no."
Then
when
what
kind
of
car
they
asked
they

patterns.

]10wever, that some further refjnement is necessary even though

many

12 months to sub¬
stantially increase spending with¬
inflation because of the fact
that we had substantial room for

in¬

NEW ISSUE

that

rather

been going up
percent, a year

five

from

usual

improves over time bequality improvements are
difficult to measure. It is clear,

with

frequently

their living has

of

[/^ashir^

who tell me that the cost

speak

nessmen

has

it has been possible

past

+

alIowanc(fs

...

I

believe that our indices are biased
upward due primarily to- madeQuale. adjustment for quality un¬
provement in goods and services
produced. It is far liom ce tain
that we have had any inflation
on average in the pa t sevc
yfars, if we take proper account
of the upward biases in our inaic<ks\ ,Rl
fPPieaJ,^g y
P1Qbable that actua prices aie
|nU(;h more llexible ov i the
business cycles than are prices
reported by the various indices.

I^mkthat£o. £
contusion

.

that

concern

the

responds to the changing de¬
placed upon it. Those that
price stability in thet argue for - government investiga¬
:
recoveryi over {the? business re-; next several months;; The large 1 tion varid^ regulation';of: price and
covery
is about seven months, deficit has not yet brought infla-1 wager changes i; would - place » a
and: this time it led by about tion. ' ;
{{- "
I strait jacket \ on : the American
Due to the present business re-'"
five months. Also, as the National
economy, which
would make it
Bureau of Economic Research has. covery, Federal revenues are now
impossible to, secure the optimum
pointed out/ there tends to be an rising rapidly. Provided spending1 allocation of resources. It would
inverse relation between the size is contained,
a
balanced budget be indeed unfortunate if our con¬

dis¬

Before

with

has

index.

cussing the prospects for prevent-

line

pattern we have experienced
the past year or year-and-

not

are

a-half is

.

n-

dicated in

been

has

and, as has
been

we

very

Financial

written

the half cenaverage

last

of

over

level since 1951 with changes that

spokesmen have been quite

1m

If, for example, we
the changes in the price

history^
compare

n?

Ipm

out

The

years,
in fact, has
been, far
superior to most periods in our

•

.

introduction7

my

opinion, they

that

inflation.

mendous

the bull market trend in the stock
order

factor

inflation

creased

case.

mild recession.

a

industries will make pos¬

In summary

experience was not fact that we have had a cash def¬
opinion. Those con¬ icit in the current fiscal year of
was
unique are mis¬ about $13 billion. All of us have

only

Excess capacity

falling.

now

over

'

Another

for

the

are

in many

my

Another

between money growth
cycle turns and, in noting moderate inflation
since 1951, he approves credit restriction during full employ¬
ment inflationary periods, and credit ease during recessions.
He suggests, however, Federal Reserve use sensitive indicators
rather than laggers such as consumer price index.
Other
observations include: (1) this recession did not differ from
previous ones regarding price movement direction; (2) stock
rate and business

most

it should.

had

causes

The

next

f

sible increased output in near-by
months without higher prices.^

fered

a

the

Again, the market, to the extent
that it is inciting inflation fears,
is getting a little more play than

prices

then

and

following

mild recession.

tending it
reading history. If we had had a
depression this last time, I have
no doubt that prices would have
dropped, but fortunately we suf¬

causal relationship

a

have

we

in the recent

as

recent

means

increases the risk burden for underwriters and investors.
economist detects

increases,

The

fluctuating interest pat¬
stable dollar even though it

He thus favors

market

serious

fact, in the early part

new

higher interest
this view, Dr. Sprinkel argues for a flex¬
policy that correlates money supply to real

growth.

really

recessions

leveled out

In premising

monetary

most

price

Economist, Harris Trust and Savings Bank, Chicago, III.

rates,

three

matter of

of

By DR. BERYL W. SPRINKEL*

Acceptance of inflation's inevitability

been

1920-21,

1929-33 and 193738. In those three periods we had
price declines of 5% to 25%. As

Implications foi the Bond Maiket

9

(1989)

1

*
.

~

>

The Commercial and Financial Chronicle
10

.

Thursday, April 30, 1959

.

.

(1990

Act

Community

(2) H

Enactment

Hospital Facilities
But
Would ^ Merely
Substitute Federal Financing
Water, Sewer or

Assistant General Counsel
Bankers Association of America, Washington,

Municipal Director and
Investment

D. C.

Tiu

detailed statement con¬
tends, that municipalities "are unable to raise the necessary
funds at a reasonable cost" for essential community facilities.
In confronting the suppositions and other allegations con¬
tained in the Community Facilities Act of 1959, Mr. Calvert s
excoriation brings out: (1) H. R. 5944 s net contribution
would be to substitute public for private funds at a lower but
not a more reasonable rate;
(2) small municipalities' rates
are as low as large ones;
(3) local government and private
business way of life is endangered; and (4) the bill would
constitute overlapping of present Federal programs without
exists, Mr. Calvert's

No factual basis

adding to total facilities

Ti

unincorporated
of investment

voluntary

favorable terms, at o

'

distribution

oil., equally

-f

+i

Hnnric

c<1^

months

six

/H/Zno
infitu
°*
3
t! H. K. oJ44
If
iaxa
u

u

hciaa

d

'

$135,200,000

n, i

i

such

and

1Q57

in

hieh

a

this

n«

bond sales is
with

vpir

an

con-

aggre-

ovei^S28400000 sofl

of

in

lanuarv and February

which there is an urgent and vital
public need. ;On March 31, 1959,
etiS\X
when this program had been in
first two montns,' effect over three years, about
a
re
.$58,000,000 had been committed

had been ln

over

of

.efieci.'.from

period from

$l,2o7,400,00U

the

of

g®
^overnmem,
at

sold

FeaeraUoans to any siatc
lcal subdivision thereof

an

would

which

,

been

have

phase

en¬

securities
business in the

without

eral

program.

water

and

Calvert

100
iuu

Our members

have, in addition to their main
offices, over 1,500 registered
.

1C(m

.

.

I* °y^r 1»500 registereo paiitie.s
The underwriting

branch offices.
h

©ur

Association.

members

are

the

in

in

t.

ties which have attempted to

proposed tain
nP

i.rvx

financial

of

assistance
4L/1

rv

ohthe

4-Vl V/M1 ftVl

Kill

and

sewer

aggregate bonds were sold to finance water
$1,000,000,- arid sewer facilities) the amount
of such bonds offered but not sold
Improvement of community facil- was only about half of 1% of the
ities for toater, sewer, public hos- bonds sold.
pitals and nursing homes or non¬
Since there are other bills be¬
profit hospitals. The Federal loans,
maturities

^

^hv

determined
the

fee

bill

fore the Committee which propose

to 40 years,
interest rate

an

under

formula

a

a

act

in

from

other

sources

cqually favorable terms and
ditions.

The

bill

would

on

con-

also

authorize

an increase of
$50,000,(from $48,000,000 to $98,000.€00) in the funds for advances to

©00

public
agencies
under
Section
•702(e) of the Housing Act of 1954
for planning a reserve of public
works.

-

'
'
(1) The Volume of 3Iunicipal Fi.

_T

,

for

nancing

J111®'

Reached

Construction

to

of

authorize
loans

community facilities (not limited
to water, sewer and hospital tacilRies), it is also significant to note
that the .v?lum? of sales ^ sta,te
and municipal bonds for all publlc facilities in 1958 reached a
record hl§h wlth an aggregate
amount of over $7,400,000,000 and
have continued at high levels this
year when the volume of such
sales during the first three months

(January
gated

-

March,

1959)

$2,100,000,000.

over

facts demonstrate

are
growing

.

aggreThese

states

and

obtaining

the

that

in

High

funds

to

public facilities construction without the Federal aid proposed in

195o(
.

The sale of municipal bonds

for

;

•

programs

of

included a
reached
an
all- number of appendices, to wit: Ap19o8 when the sales Pendix A listing the number of istestimony

time

facilities

high in

Si nlSinnnn

T

aggregated oyer

SUes and total amount of state and

^fqSfJ-2S such bonds ?usal Appendix
Jon^s
year, iyo/, tne sales ol S2
19o8.
m

aggregated
This

high

water

over

level

and

of

sewer

nr

the

by

House

Among

area.

for

such

tend

to

pansion of 'industrial
cial

be

could

65%
the

of

cost

tion

of

ties,'it seems apparent that;thb
program ; proposed ' in. H.R... 5944

of

the

project.

,

'

,

; v

similar

assist-

.

(4) Small Municipalities Can Ob-

ex¬

Rates;Without Assistance

or

tain

Financing at Reasonable

the

From

loan

No

amount

an

providing

grams

ance.

the
for the

Federal

ment and at Rates

in

Obtained

Those

aggregate

Govern¬
as

by

Low

as

Large

/

Municipalities.

It has been contended, in supbill
appropria- port of H. R. 5944, that large
for Federal municipalities (with large issues

This

authorize

also

would

for

and

sewer facilities and hospital facih-

commer¬

or

facilities.

or

made

of

excess

$75,000,000

....

.

„

.

?.rants' subject..to• specified condi- of bonds) obtain financing.at such

eligible

Felral ^

plants

grant

loan as lsiance lor waxer iacintijs,

improve
area

of

programs

loan assistance for water facilities

would

loans

establishment

successful

Federal

would provide a wasteful and unnecessaryfy overlapping. with \ the
the numerous;, ;existing Federal? pro-

requirement that the project

a

would

the

j

because they .were sold

.Subdivision thereof,

flltpd

would simply haver
funds-

Federal

assistance that

was

subs'ti-^"ities within a redevelopment' are unable to mbtaircfinancing at
area*^"reasonable' rates.' Those^general

for'financial'•

^

has

state in

1 A /I

^

for assistance? under^the';propc>sed
and ^program, There, should be noted
^profit hospitals.. The.the following 17 issues of water
w

AeeictaiiP*

iinr

The

FedeHl

tl?e construction of

Pollu-

Water

Cont?oFAct adoDted iJ 1956 other
i?tho^ th^^ a^o^t^n ^ 1954 ^"dments
tion

^nnonnnn

Sch

for

Federal

fiscal year

(^p

to

authorized ap- or sewei- ,bonds; sold during the
erarit^'^iri pr°Priatlon of an additional $60,- 14-month; per iod from Jan. 1, 1958

all

°00'000 in yFederal, grants each through February, 1959:

aggro-

gate of $500,000,000),, to states,
municipalities or intermunicipal
or interstate agencies for the con-

treatment
discharge of
untreated or inadequately treated
sewage or other waste into any,
waters and for the<, purpose of re¬
of

necessary

Los Angeles Dept. of Water and Power

3.056%

San Diego Co. Water Authority__

3.286%

18,000,000

Metropolitan Water Dist. of South. California

3.035%

20,000,000

Denver Water

12,750.000

:

$9,000,000.

Denver Water

7.500,000
,,

works to prevent the

6,950,000

Prevention ?Act

adopted

*

in*1956.*

Chicago Water Works Revenue.____I

Indianapolis Sanitary District___
Wayne Co. (Mich.) Drainage District_______
Wayne Co. (Mich.) Drainage

3.821%

3.120%

n

District-il

J_

Allegheny Co. (Pa.) Sanitary Authority.

3.920%
3.980%

3.551%
3.509%

Allegheny Co. (Pa.) Sanitary Authority!____

10,000,000

Memphis Water Revenue

7,000,000

3.588%
i-

20,000,000

"

(b) Amendments to the Federal
Watershed Protection and Flood '
^

3.032%

________

16,140,000,^ Philadelphia Water and Sewer__

exceedin gaV$250,000,
- -

3.111%

Chicago Sewer

,

whichever is the smaller.

3.495%;

Miami Sanitary Sewer

<6,000,000

grants

amount

3.245%

_

Chicago Metropolitan Sanitary District_____

include require25,000.000
ments that the project shall have*: - ~ ^ 04n nnn
been
approved by the Surgeon 4
'
General, and that no grant,,shall'
6,621,0U0
be made for any project
in* an
4,804,000
amount exceeding 30% of the es25,000,000
timated reasonable cost or in an
such

?

15,000,000

ports, plans and specifications in
connection therewith. Limitations
on

public

3.733%
3.095%

J_

Seattle Sewer Revenue.

3.618%

>

The

significant point is that the

Secondly, small municipalitie
vtvUilulJ, oulou u^iuvi^auw
obtain; rates just as favorable
as those'obtained
by large, municipalities. < Since some of the

0

organizations
finance the local
7- issues listed above by large
share of costs of carrying ouU municipalities for water or sewer
works of improvement'provided facilities aggregated over $214,-

can

for in that aet, Works of improve- i 000,000 and all of them would scheduled

witnesses before this

each shte ment are; definedthe conservation, ' have been eligible for Federal Mi^ioan
to include any
Subcommittee T0nn0Cc.00
have : been from
undertaking for
.
total amount development, utilization, and. dis- loans under the proposed program

B listing the

$1,009,900,000. number of issues and
financing for of municipal bonds sold
facilities

^

(e)? The Federal Hospital Sur-'• contentions fare--simply^ not supA
I*
/> "
Kir
A
7''

Obtained with-

Ijfovide long-term of water and the various bills. [Ed. Note: Mr. authorized Federal loans??'to;local'
financing for Calvert's
the
construction
sewer

reported

-

nn

$2,000,000,000 of
for
all
types of, struction

Sewer Facilities municipalities

Record

a

facilities

community

broader

Federal

(which at present would
if the loan cannot be

2%%)

obtained

be

com¬

j,

.

ernment.

an

up

could be made at

facilities,

fa{,ilities would have been

amount not .to exceed

€00 to finance the construction or.

with

57)

gram

A«sAntial

t

'

Anf

strumentalities,

(S.

with.,.K to' those municipalire^ard
„
...

provide

,

5944

R.

hous-'V

.l? ahy, state or political low .rates that they would not be
or nrivate or plifihlp for FoHpral
loans- nnrfpr
.°f
?.Iigil?le for. Federal. loans under
at
interest cost above the rate^v*?.ftblic organization or association the proposed
program and that
i ,™h'S tave^ beeni^aDDUc^^"^presenting, any, redevelopment small ■■ municipalities ■„must pay
unto
he nronoseTprogram
area io' the construction, expan- higher rates-than large munlcir fin^cniicntlv
thc^ nrouoscd mo- sion or improvement of public polities to obtain financing and

r»rn\nrlA

.

Summary of II. R. 5944
H.

presently- authorized for loans for

factual basis for such a statement

mil-

nicipal bonds in the United States
are done by firms which, with a

exceptions,

political subdivi-

states, which seek to
essential Afiinmiinitv facommunity fa¬
cilities, are unable to raise the
necessary funds
at a reasonable
of cost» It appears that there is no
of

sions

istribution
and distribution of state and

few

conditions

entire opportunities in such

the

And

development

Factual Basis

or other

pri-

orfmnizahnn

expansion or improvement of
public facilities within any re-

amount could have been used for

.

Finds No

nub lie

te

pletely aside from any part for
hospital and related facilities.
Similarly, if the bill had been
The bill proposes to include in
in
effect
during
the first two
the declaration of policy a statenfhQ nf iq^q
ioo% of the $28ment that
«The Congress finds 171on.t£ls °* 1959;iUUA °.Lme_?f A
400,000 of municipal bonds sold to
that in many instances munici- +:n' ,.0
M11M1M}ils
hospitals
and ;'T related

States

about
aoout

done

5944.

or a nother of the

commercial banks.

the

•

;

Fed¬

proposed

the

hospitals and re¬
lated facilities without the Fed¬
eral assistance proposed in II. R.

L.

or

was

or p u d 11 c oiganization 01
tnejate wnicn woulQ Ildve y eassociation representing any
5,PPllaable under the ..proposed redev,el0pmei/ area or part
Federaldemonstrates thatiiF H. ,, thereof, to finance the construeprogram
%
fh

facilities and of

mem¬

Gordon

to

demonstrate

facts

These

has

Canada,
including

$100,000,000.

referred

and

they were
occausu tncy
vat
interest cost above

gaged in one

United

authorized

the

private hospital no part of the
net earnings of which inures to
the benefit of any private shareholder or individual.' The amount
or a

onE01U/ -jF:eSf'n§c?' Redevelopment Act,"
which ing facilities is $25,000,000, ; but '
80.5 /©
(ovej. $T,019,- passed the Senate on March 23, the proposed Housing Act of 1959

that 5944 had been in eltect, the entire
municipalities are obtaining the $1,000,000,000 authorized in
financing for growing programs ol eral loans would simply have been
construction of water and sewer substituted for financing that was

800

•

hospital is either a public hospital

v -(d) S. 722, to provide the :"Area ' student nursing and intern

^R.r^tion^

rities. Our As¬

firms

hospital approved for internships
recognized authority'-if such

^

14-month

during the

bonds m iyo/, ana a mgn

of

aafe

types of secu¬

ber

sewage

sale

the

of such

level

and deal in all

over

water;

/f^dunngTnc

first

1959,

with the sale of over

who

sociation

of

treatment, and sewer facilities for by

Ain

trade association
banking firms and

d erwrite

u n

works, including works for the high school approved by the aplpais,storage>; treatment, purification or propriate state authority, or any

reaerai

sources

other

from

j.

any hospital operating ^a school
of*;. nursing beyond the level of

financed munjcipai bonds that were sold
^ouseaCommitteeAo^Bknkij^.';ahdCominike^^^lSAkin«^^d^cSof municipa d
.
th t
iod for water Tmd
"f? authorize sub rencv on Feb 27 1959 would ?n
bonds is much the same. The total
6 facilities without Federal Vul/fnc^'
autbonze sub- lency on Feb. 2/, 1959 would inpo1o.
iacuuies wiirioui reue ct
t t0 specified limitations, $i00,- crease that authorization to $62,such hnnrU m 1958 aggie
bonds in 1058 aeere- sew.}
assistance wouM
have+been ehgi- 000000 iin a 5e
revolving fund for 500,000. •
gated over $212,435,000, compared . ,
<.
nurchase bv the Federal r j
a
any state or politIn view of this wide variety of

securities
dealers

ing Program authorizes loans to

in

public

basic

institutions

through

Asso¬

Investment Bankers

assistance

construction, of

the

the loans could not be:obtained

800,000)

The

municipalities. for

en, £ ^^!Z?5ArVc

Ve.

WOi

tion of hospitals and other facili-

specifi- ties.

program

applications of smaller

be given, to

tne^tirst

make the proposed
if

pitals. Public Law 85-589; adopted
in 1958 authorized Federal loans
under i.this program for. construe^

rtfek ^ally provides that priority shall v(f)TheFederal College Hous-

months of 19o9, the Adminisi ai

created.

related

Introductory Comments

ciation of America is a

and

1958

hpenHfl
oeeir mei.

hjlH
naa

*Q44

it n.

during

That

projects.

Financing.

Private

for

assist in. the construction,;
of^nursing homes, diagnostic and ;

year' to

adopted in the "Housing Amend- treatment .centers,: rehabilitation *
facilities arid chronic disease hos4 ;

.ments of 1955" authorized $100,000,000 of Federal loans to states,
municipalities and other political
subdivisions, public agencies and:
instrumentalities to finance public

Additional

L. CALVERT*

By GORDON

,•

.issue.]

5944 Would Not Provide
Appreciable Amount Of
Construction of

R

Any

Has No Basis for

(c) The present Federal, Community
Facili t ies
Program

net interest

with the amount and
cost of each

1IIQ

.

-

in

each

1958 for water and sewer

posal of water." Local organizations which are eligible for such

if it had been in effect since Jan.
l,, 1958.

It should be emphasized

>

-

--n

.

.

■

selected a few., illustrations from
those states.

*

The following issues

"surh^ bonds"hffirJt*hvaa facilities- Appendix C listing by loans political subdivision thereof,
are defined to include "any^in passing that all of the munici_ during the 14-month period from
ponas
the fir^t thiee state each-issue of .water and sewstate,
T
t
10=0'%^,,^;^-,,,,,-.
months (January-March, 1959)
bonds sold by municipalities soil or water conservation district, pahties listed above obtained very
>
g
ry
aggregated over $294,000,000.
during 1958, with the amount and flood prevention or utility district- favorable and reasonable interest 1959 by issuers with a population

©I

sucn

in

,

er

The

picture

—s.at.n.en,

for
by

hospitals

Mr.

Overt

and
before

the Subcommittee Number 1 of the House
Committee

on

Banking

and

Currency,

Washington, D. C., April 24, 1©39.




net interest cost of each issue. Ap-

M mutoitoVmtds ToW
JLj

finance water and sewer facilities
in

or

combination

thereof,01* any. rates in their financing: but thev of less than 25,000 obtained inter-

to

January and February of 1959

3

+1

ii_'eral

tain and operate the works of im-

provement.

loans

program.

been eligible proposed est rates in the same range as and
for Fed- large^ issues .listed above, the
under
the
those issues marked by an asterisk

Volume

at

were

ti
i

which

levels

been

have

'

Number 5842

189

eligible

.

.

The Commercial and Financial Chronicle

.

not \

would

loans if the proposed
had been in effect:
'

program

Soviet

i

3.000%

Foreign Trade
Operations Detailed

3.645%

Official Soviet statistics show its

3.607%

Federal

for

1957

:

•;

"

.

•%.

3*/'.'V

I.

'r

Morristown

"$375,000

Tennessee

V

Water Works

_

300,000

Clarksville Water Revenue

550,000
500.000

Springfield Sewer
Shelbyville Sewer

445,000

Tullahoma

5i
k*

•:

___

3.536%

Water and

Sewer

totaled

trade

with

V3.865%

.

s "§70,00.0 "Midland Sewer _'___
,41,000:' Lapeer?Sewer
390,000% Mason Sewer •

,-y

?

•£•466% t

__•_

_

■

v.% 160 000 " Grandville Water ________L__

3.369%'

:

_

Most of the

confined

was

V

The first detailed

Port Huron Sewer___—

2.719%; • statistics
2.722% ; TXS.S.R.
?•

_

_

// *27,000Walker Township Water
;'{•";3:X 0129,000p, Buchanan Sewer

__

'

be

investment trust has

Rapids Township Sewer_

2.435%

—

r^35iG00; ^HarrisohrtTpv^sh^; WdterX?-J*,. „•<_ *. _-X / 2.0G6 % /
#103*006 vRedford^jTownshiiD^ Sewer/X-2,my

X

■

"

.

2.750%

12,000 iMidland Scnver;

are

diversification, and supervision
I, have

sum-

recently

been

?

the total value-

on

would

for large

municipalities and thai

with principal countries, trade tntr;
"v"®^ prin-.
with
the
"(5)/The proposed', .program' rm
1 w,fl"
as low as

those obtained by large

^

is not

a^primary factor in the
#'••• interest rate which the mnnici-

,

the

Govern-

^

i^y
irrt;
'■'1 j*f
Oui
system of

%/, based

>'

;*

v

•

over

that

^

4,

/.

be

,

take

busing

performed at reason.

,

.

.

.

,

,

,

the facts summarized above dem-

onstrate that the desired financing

v

R

R

basic
(.4 Billion Total in
..

sions to the Committee.
^

.

<

•

-

•

.

'

"

'

'

Two With Bond & Share
-

.

bloc

countries

(Special to The Financial Chronicle)

PASADENA,

.Equally important is the fact 16
the proposed Federal finan- '
;h( cial assistance to local government
M units would' necessarily creute;. a

Calif.—Edwin

C.

e-am.—auwui

v-.

JiL aB0dnriJTes^rPJrnis:
Bond & Share Co.,

now with

are

North Marengo Street.

-«i that

-with

a

resulting

les-

;

,

the

diversified.
As owner of a
National Bank stock, your n&oney
is loaned to hundreds of different

companies

individuals, moist
best risks in yotir
city; but loans are also made to
large national companies.' No mu¬

__

_

DIEGO.

WoiMah

close

The

:wn

commercial

bloc countries. The

Free

United

ties

pre¬

nS important
.

+rw

communist

and

Soviet

*aaoa

t at i

p o r

thermore,

:

desire

us

build

China.

imports, the statistics show

predominantly

were also
Soviet

with

bloc,

70%

'Roger

W.

thinks

Babson

cars."

to

save gas.

"In fact, I

believe"—he continued—"that the-

women."

to

point,

my

make

a

which

is

this:

You

no

stock
and

But,

be sure to get J the
your most conservative

of

most

highly regarded bank.
Owning stock in "second string¬
ers" will not give you prestige.

public facilities without
reliance on the Federal Government lor assistance in the forms
needed

an^the

e.vRwwRf'
SAN FRANCISCO, Calif.—Don-

there

But

are

other

im¬

more

believe

henceforth

assets

value

a

charged

as

valuable.

is, the
it

more

will

y.

United Kingdom. These five coun-

aid

M.

Frank

Michael'

and

Jv

.

"hidden

The

;

street>

i *G

%

posed in H. K. 5944.

•

^

tries

.were

the destinations of

over

such hidden

bank.

Hence, this
buying stock in
^

stocks

-

are

over

values from
Most sell at
book

their

talking

with

buying,

you

the

gives

up
to
premium

Before

banker

should call

about

upon

one

whom, you may
Ask him to explain all this

you.

The

$10
a

values.

your

v/1

directors

know.

price

;

is
an

issued at vari¬

par,

$100.

a

as¬

and
latter,
you

Ask
the
approximate
the annual dividend.
divided by the price,

the yield. That is, if the
$25 and pays an an¬

stock sells at

portant reasons for owning

shares in such
the

most

Albert W. Moore With

•

■SujP J?'

FRANCONIA, Pa.
erts

p^iiitie^"but

nr

substitute Fedeial
financing for private financing : •
would

.

■

,v

&

(3) h. r. 5944 would provide a
inefficient: overlap-

and

ping of present Federal programs

/providing

similar assistance.

(4) .Small

•

'

°mce on
the

municipalities

-

E. J.

,

ports,^.
and

the. other hand, were
' heavily concentrated in metal ores

has

direction
,

opened

of Arlin

a

concentrates,

nonelectrical

Rob.; machinery,, assorted food products,

branch

Lapp.

Pi

x

published

the

report is

No. 59-12 in

as

Part 3

of bfc's world trade
formation service. It

„

hewlett, n. Y.

1956-57/'

U.S.S.R.,

•

Now Peninsula Investors

Jack Freid,

lzl\.no P?11 ;„!^ZC+' ^fn<^ic;^°"e

jx;

purchased

v

iotendent

of

from

the

or

else

from

you

one

.'should
the

of

Investors

Co.

get

letter

a

officers

bank

eral

Reserve

cludes

System,

certain

which

Mass. —Albert

change.

Mr. Moore

was

child & Co.

inmay

Super-

Documents,

S.

U.

All

of

these shares
.

appears

having been sold,
as

a

thir, advertisement

matter of record only.

.

; :

FOR SALE

■hit
'

;id

COMMERCIAL

'J.-:

&

FINANCIAL CHRONICLES

(Special to The Financial Chronicle)

Us

•

with

Pacific

Coast

Excellent

Condition—All Canvas Bound

Pearson

.

Corporation

Common Stock

Securities Co.,

240

In

t

FRANCISCO, Calif'.—Paul
H. Joosten has become connected
SAN

'

it}.

175,000 Shares

Pacific Coast Sees. Adds

Montgomery Street. He
formerly with Merrick & Co.

was

(Par Value $.25 per Share)

'Si

From

:-h:~

Crowell, Weedon Adds

ao

1837 —to—
•r;;

:, He

1945;

Available

immediately in N. Y. C.

!•■)

1i

Iieitz

ANGELES, Calif.—John F;

and

Write

or

Phone—-REctor 2-9570

Edwin L. Beck, c/o




Chronicle, 25 Park PL, N. Y. 7

R.

Michael S. Myers have

become

<»-

Ol

(Special to The Financial Chronicle)

LOS

connected

Weedon

with

A. HOLM AN & CO.
INCORPORATED

&

Crowell,

Co., 650 South Spring
Street, members of the Pacific
Coast Stock Exchange. Mr. Heitz
was previously with Lloyd Arnold
8c 'Company. • '

54 Wall Street
April 29, 1959
—

■

'

---

Ex¬

Manager

of the Boston office of L. F. Roths¬

Banks and Trust Companies.

Washington 25, D. C., or any of
the
Department
of
Commerce
/ Field Offices, at 20 cents a copy.

Wr.

53 State Street,

members of the Boston Stock

in¬

State

qualified

BOSTON,

Moore has become associated with

Burgess & Leith,

stating that it has .joined the Fed¬

Government Printing Oflice,

1
can.sula

on j

and ships .and port equipment.
,
Allentown Road, under
Entitled "Foreign Trade of the

Co-

merely

wasteful
v

1

r
.
n
.
'.
:';
.
£, J, Roberts/Branch

■

V

.

as¬

older

Burgess & Leith

s'

''

of

off

-

have.

for

reason

to

turn: out

Many of them will someday

bank

of

at

These

known

are

sets."

become

ous

will

appear

dollar.

one

sets

it

some nual dividend of $1.00, then the
a bank.
Banks are stock yields
you 4%.
This may
carefully government- seem a small yield, but it is not
of grants or loans, in order to Stack
have
become .. connected 't&'0-fifths%of all U.S.S.R. goods
supervised form of investment.; too little for the security, diver¬
assure the preservation of the rewith Birr & Co., Inc., 155ySan- shipped to: the Free World in that
Once or twice each year the Fed¬
sification, and supervision which
sponsibility and independence of some Street.
• - %■ ; ' O-\-.yfear. 4
:■7 •' :
eral Government Examiners call you receive,4
X;';
p.
p i'T
*
The principal exports of the (unannounced
in
advance)
to
Willi rirsi ^mirornia
U.S.S.R. in 1957 included wheat, make an audit of your local Na¬
r >
Conclusions
v
(Special to The Financial CHRONiCLt:)
,;
petroleum and products, eqtlip- tional Bank; this is in addition to
(1) Municipalities are obtaining
SAN FRANCISCO, Cal.—Rader
merit
for
complete
industrial certain State examinations.
This
the financing
for growing';pro¬ J. Hilbe is now with First Cali-"
plants, iron, and steel, raw cotton, means that the stock which you
grams of construction
ol water. fornja Company, 300 Montgomery and w'dod arid lumber. Soviet imbuy should be of a National Bank,sewer and
(Special to The Financial Chronicle)

/
.

■

is

On the bank's books it will

Bank

long time to get

expenditure
of
from the money which will give you such
coming prestige as will owning a few
can

bank.

..

rectors

okay.

old

Careful Supervision

loan

he
it,

<

I have taken

examiner
or.

asks that the
bank
collect
or. sell
it, or
charge if off to one dollar! Usu¬
ally, ^the
questioned
asset
is
charged off even though the di¬

one

/.

bank

a

investment

an

questionable,

heavier

shares of stock in, your best local

.

year.

Whenever

larger

and

financial

published
twice

a

to

causes

diversified; fur¬

condensed

a

in your local paper once or

prestige

-

well

as

statement of the bank is

on.

for

investment trust hhs

or

its assets

trans-

about, not to

goods

vakia

Calif.—Winthrop

ho<>

for

—

or

the

tual fund

prestige,

vailing ( between; the U.S.S.R. and* present
buying of Ramblers is
otlier Soviet bloc- countries are
largely a fad.
Style and fashion,
shown by- the Soviet trade data."
now apply as much to automobiles
In 1957, 74% of all exports from
as to the length of
skirts, size of.
+w
tt«'qp
hats, or color of shoes worn by.

1

(special to the financial chronicle; u

^

for

This

in
year was the Soviet Zone of
Germany, followed by Czechoslo¬

Norman Roberts Adds

buy
large

small

them

of

The average buyer wants
keep up with or go ahead of
neighbor!
In fact, this is the
Untied Kingdom, Federal
Republic of Germany, Canada, and real reason he buys small im¬
ported cars—to have a car to talk
France.

the

' that

.

'

SAN

ernment,

—

Banks

many

well

his

'

'

to

and

following

nstionsj'

v.^

<

cars

and

1957
''

-t.•.

exports ;of the U.S.S.R.' to other

and

^

hospital fa>cilities is being provided at rea-

^Sm?te Wlth0Ut ",e Pr°POSed
programs.

-

k

The report reveals that the total

fencing.
ipi .puvaxc,
We anDreciate the ooDoriunitv
,0"u.mU S'Is a,?d c-'mdn-

for water, sewer and

:

gg44

people

■

National

State Banks and
Trust Companies are exceedingly

two.

not

nhwise policy to coftiinit $r,000,- "World anaounted to $4.4 billion irr
900,000 of Federal funds''to a pro- 1?57. The U.S.S.R. thus ranks
igrahi which;would "simbly sUbsti-/ si^^b^P^bng? the World's-trading

able rates by private business; and

.„v.,

j

the

to

tute Feclercil fin^ncins for Drivctte

the belief that the Fed-

on

functions ol private
can

'v

government

eral Government should not

.

.

contrary

'

.

"Hidden

and

of

assets

of

and

first

or

,

y^^tfeerBMic^Ecoa theiS^^no1 need^for ^doiJtion^ol
that it would be

Be Contrary to the Basic Eco-

,

•

be

-y'

-

pality must pay to obtain finane- economic and political concepts of
ing. : ■"
"t. * % our system of government. ;/HS5

'

I;

would

vj;

receive.""

you

.

Assets"

sell

after

'

.

The

Reason: "Most

/^the'size:'iff-^!the';issuiiig(munieipalH/^ lhupicipalities.

.

Diversification

talking

with a prominent General Motors
a
hew report issued
official about small cars.
He is
Bureau of Foreign Com¬
rather
skeptical as " to whether
merce,
U.
S.
Department
of
small ears
/
Commerce.
C '
#-.o>
built by Gen¬
The ' report" presents
official eral
Motors

year
*

no

released

since« 1938

Soviet statistics

One,

which will become valuable someday.
He concludes that, a
bank share's lower yield "is not too little for the
security,

by the

Grand

investment.

well diversified assets

as

marized" in

2.309%-

—__v

to

or

an

or is more
carefully examined as national or some other banks.
Two, they contain, particularly in older banks, hidden assets

Fin-

to

foreign trade
by the

*

"26,000

mutual fund

investments, Mr. Bab-

as

offers arguments in favor of such

son

land; Yugoslavia, Egypt, West*
^eitt Germany and England.

2.492%
3.239%

____

; i;

By ROGER W. BABSON

Greatly disposed toward bank stocks

74% of exports going to

remainder

:

-

11

The Case (or Bank Stocks

$4.4 billion

other bloc countries.
Michigan .; jV. :

.....

i 4;

(1991)

i

New York 5, N. Y.

The Commercial and Financial Chronicle
12

.

.

Thursday, April 30, 1959

.

(1992)

expan-

monetary and financial situation,

whole, having at all times in mind sion, monetary stability is one of
the preservation of a free society. its primary and essential condiThe
businessmen
will
exercise tions;
otherwise we: may well

Role of Businessmen in the

Therefore I-^take^ttie: f libertyI".„to
state that those in foreign couritries who are at present, adyocating inflationary policies are 1.-rendering a great disservice to my

of the

CORTNEY*

terests but support

Industrialist

and

as

ICC

This

to be
will prove
to the business leaders

more

once

promises

Congress

memorable

would

it

be

create

is

i

g a n

or-

d

z e

to

to

the

free world

the

render

.

of

businessmen,
dedicated

Cortney

ph;].

and

friendly relations benations by fostering inter-

tween

national trade and investment.

No

our

subject matter could be more
and more timely. We can't

vital

expect to remain free men
long if we are not ready to

an-

acts. Yet it is a

fact

swer

for

that

our

times
it

our

free
if

as

is

basic

pertaining to

one

for

which

for

behaves at

society

no

responsible

situations

man-made

undermine

freedoms.

Let

hie

our

take

an

example: Inflation, like most
monetary problems, is admittedly
a complex issue. But the problem
appears to be inextricable, simply
because everyone responsible for
helping inflationary processes is
denying his share of responsibility
and

spends

blaming
cost-price vi-

his

else.

someone

time

The

cious spiral is a good illustration,
Business is blaming labor unions
and

sometimes

the

government,
the Federal
Reserve
System for their easy
money policies. The labor unions
are pointing their finger at busi-

or

specifically

more

Government

nessmen.

is

admon-

ishing

businessmen and labor
unions to show restraint, while

excellent

minds contend

straint in this
of

understanding of basic is-

and show the character to
rise above their own selfish shortterm interest. Otherwise, said he,

nothing more than a device to accommodate the country to the
bitter tugs-oi-war of conflicting

of

in domestic and world affairs,

men

develop
sues

is responsibility of business-

gress

nature

be

a

men

that

therefore

would
well nigh
impossible to sustain. Universal
suffrage will survive only if we
face the problems created by it.
Otherwise we run the risk ol
drifting into some form ol totaligroups

pressure

will

not

which

make free government

tarian government,

speak of the responsi¬
I have in

businessmen

without

inflation
.

.

and

unem-

..

.

My reflections on the mainsprings of a free society lead me
to the conclusion that its preser-

country, which may. in the end
have serious repercussions on the
rest of the free world Indeed, our

vation

banking system has
potential
of
credit

depends, to a large extent,
following conditions:

the

on

of

free

a

society depends on

sound currency.
This
by a policy of
stability, which is not
the same thing as a policy aim¬
ing at the stabilization of a certain level of prices, assuming that
it can be done at all.
The fact is,

having

a

be

can

obtained

monetary

^

v

'

commensurate

It

_

proven in the 1920s, that
can have monetary inflation

Seat

credit of the ua,.
responsibility. Besides, only the great crequ; oi ine ICC
large businesses have the means
to support the necessary organiza¬
tions to defend free enterprise and

-

-

J rs-*^ aa

warn

.

t-vrttr

of the

us

monetuation of

government debt and abuses of

inflationary ciedit b> commeicial
banks are extreme-y pernicious

These being the

and dangerous.

,

"

l-v a

n/iA

such conditions

and

-

r

vinrn

deficits, to

deterioration of our-dollar. Under

wc

i.i,

i

x

i

ments

stability of prices.
,n,

colossal
expansion

a

-while seemingly^still Laving an
e
foi the
liabilities of the Federal Reserve
System. Nor are there any led
signals,',|or the time being at least,
like for instance balance of pay¬

(l)First and above all, the very
life

as

preservation of

a

free society.

the free world

Importance of Ideas
referred to ideas.

few times I

A

It

means

is unnecessary, I am certain, to
the

importance and

ideas.

of

To

provide

sensible responses

power

adequate
to the new

C-%tes):hre: playing with fire. We

ership means ideas before any¬
Wherefrom is sound
thing else.
and clear thinking to come?
I
submit that we cannot and dare
not leave this essential task solely
to

the academic

the experts or to

world.

After all, Keynes was and

Slichter is

an

academic economist

great repute. It is difficult to
exaggerate the confusion in think¬
ing attributable to these two great
experts. To foster inflation and
sick currencies, thus undermining
our free society, the world did not
of

Free

need

ratiocinations

Society

,

minded

This Congress will be concerned

share of responsibilities

with the

the

is

of businessmen for the preserva-

going on, wages and prices continue to go up even during the

tion of our free society. I hope
that everything we recommend
will be tested against the criterion

economists

the

classical

and

that

teaching embodies

the

some

well be star-

may

^proposed^ while1

vestigating
tion.

the

were

i

essential

hoice Between Inflation and

truth

is

that

tl

to

«/♦\

^

rates

free

a

+

+•

oi
interest ot
competition is
society,

the

human

Freedom

The

r

Vigorous

money.
c

1

'

second cpndRion for

^n-eservat on of a free society

Is'5??*' 5®
^
trV
including

fhpm'

nhnut

'

^

in-: the

of inflaany mystery

causes

if there

as

England *'

gov? f

many
ernmental committees are still

challenges and problems, the free
world needs leadership, and lead¬

spe¬
social, political and
technical forces will endanger the cious theories of Keynes and
very existence of the free society Slichter! The academic economists
unless the problems created by have fallen too much into the
of
recommending
short¬
these forces are faced squarely, habit
The shape of the things to come sighted expedients, instead of poli¬
to
eradicate the
will be strongly influenced by cies designed
politics, but even more so by ideas causes of the ills endangering our
free
and by our behavior. We are too
society.
We
businessmen
prone to
blame the government should of course ask for the coun¬
and the politicians for all of our sel of experts, but their opinions
troubles. Yet it should be obvious should be tested by the experience
that the future of our society is and good sense which we acquire
determined not only by govern- in confronting the realities of our
ment but by business leaders, edu- free enterprise system, thus pro¬
cators, churchmen, journalists, etc. viding balanced recommendations
In other words, we have the kind on public policy.
of government we deserve,
Keynes himself, shortly before
his death, probably frightened by
Businessmen and Our
the consequences of his ideas, re¬

These new,

re¬

is against laws

case

and

I
of

influence

and

government would be reduced to

theme

main

they

because

economic

to

both

ployment.

particularly the large busi¬
organizations. It would not
good society, that in which
could wield great power and

am

Con-

The

ness

stress

I

|hat people

to

fight for the preservation of freedom

mind

recently remarked at Gettysburg
in democracies must

international

parliament

maybe

have

As

universal suffrage be-

cause

of

kind

a

When

bilities

convinced that everyone in the free democracies wishes
a
government by the people for
people. President Eisenhower

performing. It
is

recognize the problems

.

is

ICC

We must

created by

services which
the

".their laigest
bankers, busi-

nessmen,

busi-

of

nessmen

con¬

mously.

-:-j^ve venough monetary cranks in
labor unions, farmers
l andUto bad laws , which are the
'result, sometimes, of .lack of un«
derstanding, but more often of to help by. the competence and ex¬ monetary stability
The report,- aeht of : monetary problems that
politics in democracies with uni- perience - of their managers the had the
approval of businessmen j^eynes' feachings have done more
:yersal suffrage,
fostering of ideas essential to the and experts from ,40 nations, and,h^
bur, country than to

associa-

other

tion

No

one.

the

to

great variety of nations.

mention the deterioration of

ances are due for
part to government,

to

duty

of
The

way

reconcile the interests of

to

have

inner contradictions of capitalism,
as is being argued by the Marxists.
Business rand v.currency disturb-

exist

didn't

our

ask?

our

I

may

nearest

comes

community

currencies and business depressions. These are not due to any

that if the ICC

the free world

of

me

It

one.

will, "

cept of making and supporting
recommendations
for
the
com¬
monweal of the free international

a

a

defend

not

who

life

prerequisite to economic expansion.

a

do

men

guardians of the free market economy. Maintains free enter¬
prise system is in serious danger of drifting into some totali¬
tarian form, with the threat chiefly arising from monetary
instability. Mr. Cortney declares unemployment is primarily
due to inflation of money and credit, and that monetary
stability is

policies for the

speak

businessmen's role

stresses

if

long term good of all. In a few
words,
the
businessmen
should
as enlightened citizens and
not as businessmen.
If business¬

Seventeenth Congress of the

International Chamber of Commerce

Economist

a

they do not act as a pressure group
to defend
short-term selfish in¬

President, Coty, Incorporated
President

as

economy

their influence effectively only

Defense of the Free Society
By PHILIP

the

of

interests

we

have

to

choose between inflation and free-

motivating force of which
is self-interest.

(3) The third condition is that

of others,
the destruction
of all. We can't have an enduring
free society based on immorality,

should avoid serious economic
disturbances which may result in
prolonged and large scale unemployment. To obtain this it is
necessary and sufficient that we
do not commit' abuses of money
and ciedit, and that the wages be
determined freely on the market

currencies

place like any other price (assum-

while too many still believe
can have both.
Besides, sound

dom.
we

question of morality,
is
robbing

currency

is

because

inflation

for

some

and

ending

shall

We

!

benefit

with

have

sound

How

to

politicians ol the

get

world to follow what

free

ing,

free society will perish!

our

or

a

the

we

re-

as sensible fiscal and credit
policies remains a very serious
problem. It is up to us businessmen
to refrain from making requests or recommendations of an
inflationary character. Neither

garcl

should

adopt, in running our
policies fostering inphysically or psychologiAn objectionable policy in
we

businesses,
flat-ion

cally.
this

respect is, for instance, the
adoption in labor contracts of
cost-of-living escalators or continuous yearly increases in wages,
Among the dangers menacing
freedom

none

is

more

serious than

the

prevailing skepticism toward
the importance of sound currency.
will

You

repeat
often
shall have sound

never

enough that
currencies

we

we

or

shall

lose

we

our

of course,

Because of the credit and sometruths of paramount
significance which cannot be dis¬ times prestige they enjoy, the intellectuals who are spreading falregarded at the risk that we may
just drift on from expedient to lacious or outright false ideas,

permanent

or

O,lgopoues;.
Opportunities of Businessmen
We

businessmen

can

by

our

.

.

.

actions or inactions, in the con¬
duct of our own businesses, help
or hinder the forces which put in
danger our free society.
Moreover, the businessmen will have
to organize themselves — more
comprehensively and effectively
than heretofore to influence the
course ol our society in the realms
pf thought, politics and economics. Their aim should be the weltare of the society as a whole,
measured as widely as possible in
dimensions of the free world. The

International Chamber of Comby tradition and by the
quality of its leaders, comes near-

merce,

es^ 1° such a concept,
Our

freedom.

public vigilance

against business monopolies

business - statesman
Baruch recently made

great

Bernard

the following statement: "Rome
fell not because the barbarians
swarmed in but because the charrecession. It looks as if we are
expedient and never really get fit and thus are distilling poison in acter of her citizens grew soft
living in an irresponsible society, whether it will help or will un- again. He referred in his posthu¬ the minds of men and particularly and their capacity for self-disciThe nature of our society is ag- dermine the maintenance of hu- mous admonition to the deep un¬ politicians, under the pretense of pline
waned." Toynbee echoed
gressively challenged by commu- man freedom,
the same thought recently in a
dercurrents at work in our eco¬ sophistication in economic thinknism and state capitalism, both
Business is central in our society, nomic system, to the natural forces ing, are among the most serious speech at Harvard,
do.

While this

battle

implying

systems

of

words

the

loss

of

The

businessmen

assume,

in the

other

conduct of their own firms, grave

hand, the free world is confronted
with many new, baffling and complex problems. It will not serve
any purpose to bury our heads in

obligations and great risks, but
they are also often the benefIciaries of the free enterprise system,
at
least
money-wise,
too
fre-

the

quently

human

we

freedom.

sand

and

On

believe

make

don't notice

the

them.

stubborn", said Lenin in
his

most

memorable

that

"Facts

are

of

one

statements,

Some of these problems

assorted,

heart troubles.

however,

oped countries to

to play as active

get industrial-

short-term economic interests—as

ized with the hope of thereby increasing their standard of living,
Other problems are of our own

vide

—77—

They
.

,

are
„

man-made.
_

.en^tiXTchamberW
ington, d. c.,

April 20,

,

Let
.

".r^cVwaih:
1959.




the

government

.

and

Pet?nt COuUnS,e'- Th,Cir reCOmmetldations should be focussed on the

I

am

our free
society.
particularly happy that the

portance of

work.

of

operating

towards

President of the
so

United

vigorously
a

States

on

is

the im-

balanced budget and

the mortal danger inherent in
monetization of government
In contrast, it is most un¬

The

ICC

will

render

great

a

service to the international busi-

community by arousing the
consciousness of the businessmen
to their share of responsibility for
ness

the preservation of a free society,

the

Enterprise
Our free

serious

System

in Danger

debt.

enterprise system is in

of becoming so¬
cialized or of drifting into some
totalitarian
form.
This
danger
danger

fortunate

of

vance

of

that

some

great repute who,
in

many

age

intellectuals
as

they ad-

become

sound

skeptical
precepts, make

arises

primarily from unemploy¬ themselves the conscious or unalleged incom¬ conscious instruments of forces
patibility between a high level of destructive of our free society, or
employment, economic growth worse yet, of some sordid and
and monetary stability.
ignorant special interests, private

ment and from the

I

submit

that

whatever

unem¬

ployment we have is due pri¬
marily to inflation of money and
the credit and to a complete disregard

legislators with sound and com-

enemies of

speaking

labor unions, farmers and some
business organizations do at present. The businessmen should pro-

doing.

the invisible hand which

if the classical medicine is also at

Precisely because

business is central in our society,
the businessmen have a great role

even

equilib¬
rium, and he ended by asserting
that we shall need less expedients

with

guardians of the
ply the result of human evolution free market economy, which is beand events. Among these I will ing challenged today as never besingle out technical progress, the fore. It is essential to this effect
explosion of population increases that businessmen do not try to
and
the desire of under-devel- protect selfish, unenlightened,
sim-

are

and
are

of

the

bodied

Keynes

fundamental
in

classic

asserted,

truths

em¬

economics,

alas!

as

posthu¬

or

nationalistic.

Nobody will deny, I hope, that
my country has rendered, at great
sacrifice, invaluable services to

Burnham Correspondent
Burnham

and

Company,

15

Broad Street, New York City,
members of the New York Stock
Exchange, have announced that
Freehling, Meyerhoff & Co. of

Chicago are
spondents.

now

their

corre-

Bennett & Co. Formed
NEWARK, N. J.—Bennett & Co.
has

been formed

with offices at
in a

the free world since the end of the
war.
It shouldn't be a secret that

786 Broad Street, to engage

this

is.a principal

help

has

undermined

our

securities business. Bennett Davies

of the firm.

Volume 189

Number 5842

.

.

.

The Commercial and Financial Chronicle

(1993)

>*>■>**

I
'if/

<'S""|gii "

New twist turns
*59

Chrysler Corporation

cars, are

the industry's most talked about new

leader in engineering, we're proud of many

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and Torsion-Aire Ride. You get




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name a

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CHRYSLER CORPORATION

13

The Commercial and Financial Chronicle

14

.

.

.

(1994;

will

Submitting East-West Disputes
To the Hague World Court

The

which

Court arbiter of all differences

that

this

address

to

position could

in

my

Flattering
fcecau.se
the

?"f'

Tiw.

at

^

least

of

Communist world

I

resent

can

properly
described

be
as

a

complimentary terms
usually reserved for politics and
politicians.
And

challenging because I real¬
that an Academy of Political
expects

speech of aca¬
add,

a

demic character.

I hasten to

however, if it is proper to quote
Princeton

at

man

Columbia

a

gathering, that is using the term
disapproval

Speaking

of

London's
**When

Dec.

on

of

28,

said:

he

began

war

in

1918,

league

a

thought of as one
things that it was right

those

was

to characterize by a name

university man,

ways resented.

It

which,

I have al¬
said to be

was

academic, as if that in itself
a
condemnation, something

were

that

could think about but never

men

In my view, the primary func¬
tion of the practicing politician
r

and

of

the

political

to find ways and

scientist

is

for peo¬

means

ple to get those things they think
about; to make the impractical
practical; to put idealism into
action.
The most difficult problem con¬

fronting
l am

society

our

sure

will

we

today is,

all

as

the
cimple but over-riding question of
the

survival

of

Because While

civilization.

our

none

agree,

of

us

would

downgrade the importance of such
challenging problems as the con¬
trol of inflation, economic
growth,
civil rights, urban redevelopment
*—we

fect

all know that the most
per¬
solutions of any of our do¬

mestic

problems

will

difference

at

around

make

no

enjoy them.

to

all

if

we

not

are

Perhaps at no time in the course
of history have so
many people
been so sorely troubled
by the
times and dismayed by the
pros¬
pects of the future. The almost

unbelievably destructive
modern

enough
to

to raise

mankind's

even were we

which

followed
But the

by

doubts

grave

of
be
as

ability to survive
living in a world in

traditional

ternational

power

should

weapons

patterns of in¬

conduct

the

7*

threat to

our

Soviet

Mr.

Nixon

Science,




before

New

the
re¬

that

moreover

the

leaders

are
equally
on
regardless of which

that

notice

political

party holds power in
Washington, these policies of reso¬

do in the divided world.
y' 111311

s

/ V,?f

only
that

.

similar

tut™

sion

the

that

that

But

of

law

must

Let

days?

shareholders'

legal minds in the. nation's
history had to say in this regard.
Commenting on some of the problems of international organization

The banks had held
meetings as

lie

opinion of
led along that

the

this clearly evident in the
developing situation of Berlin.
ing

We

also take confidence in

can

the fact that at this

.•■'■■■"

years.

Not

world

to

■

can

be

rule

gained

United

States possesses military
fully adequate to sustain
its policies, and I am certain that

among

power

Rhyne,

whatever is necessary to keep this

clared

balance

associates in Boston

tions

in favor

and

will be

the

done

of

the

ideals

free

of

na¬

freedom

by this Administra¬

American
in

law

of

Association,
despeech to a group of
a

few weeks

that there is "an idea

ago

march"

has

Bar
a

in

the

tion and by its successors regard¬
less of which political
party may

mately the rule

be in power.

world.

the

on

"
He

was

piace

What

this

national

posture
unity taken

in the

mean

of

resolute

alone

must

rpfprrinf*

We

all

recognize
enough.
Even

not

that

of

this

though

is

our

dedication to strength will reduce
sharply the chances of war by
deliberate overt act, as
long as
the rule of force retains its
parafnount position as the final arbiter
of
international <.

will

ever

war

by

ever

to be

removed from
ance

-thnt

ultiilti-

of law must

men

..

its precarious bal¬
the head of all man¬

over

re-

the
tne

...

:

more

positive

A
.

wonders

entered

favorite

how

much

the

into

poll-

decisions.

those '

of

outcry

op-

posed to such mergers is that it
prevents competition. Often, and
in this

First National City Bank because

ing

the

Justice

of

the

Sir Winston

to

One

It is

establish-

a

will

for

understandable tempta¬

public

some

men

to

"bold

new

the

human

resolve

suggest

program"

more

York
more

more

trade,

missiles,
more

meetings

at

more

exchange,
the

aid,
or

Delhi last January
that there are basic
universal
principles^, on1 which
lawyers of the Free World " can

Summit

the

the

terms, were:

Morgan

holders

through the activity
Association

and

by

proclamation of the President, May
Continued

,

Morgan

Guaranty,

at

,}

639,000,000
511,000,000
299,000,000
271,000,000

*

' v.

'':

224,000,000 ?
-

f

are all large banks,
plenty of competition
accounts, loans, etc., among

and there is

f0r

.

them,

Morgan Guaranty Trust Com¬
pany opened
its doors for busi¬
ness

on

April

27!

David Morris

on

European Tour
David

Co.,

52

Morris, David Morris &
Wall Street, New York

City, is leaving on a trip to Europe to investigate economic con- '
ditions, and will visit England,
France, Italy, Austria, Greece and %

Turkey. Mrs. Morris will accomhim. The trip will be made
by air. "

*

pany

Frank Knowlton Adds
(Special to The Financial Chronicle)

OAKLAND, Calif. —Robert E.
Flagg -has
joined the staff of
pran^ Knowlton & Co., Bank of

on

...

OAKLAND,

Calif—William B.

added to the
stocirjer"shai'e"olMorganrGuar- staff of Meyer Lightner & Co.,
*—
Rnnlevard
«?*»> onf share of the new per 3408 Park Boulevard.
■

,

of

part

qaor

4l

_

As,

Guaranty.

at

the

^ r3n ^ l°
**ime

Pa?sed and doubts about.the plan

Marian
about
hands

hapkPH

Joins Mason Brothers w;

011

the

24th

at

about

OAKLAND,

page

34

dalif.

—

Donald P. o

Roth has become connected with
]y[ason Brothers, First Western

fo BuildinS' members of the Pacific

off

375-85; but shares changed
410

Coast Stock Exchange.

NATIONAL AND GRINDLAYS

BANK LIMITED

/

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

.

BANK

>

26

BISHOPSGATE, LONDON, E.CJ

54

PARLIAMENT S»TR£ET, S.W.I

London Branches:

INSURANCE
STOCKS

13 ST. JAMES'S
Trustee

Members New York Stock Exchange

120 BROADWAY, NEW

YORK 5, N. Y.

Telephone: BArclay
Bell

7-3500

Teletype—NY 1-1248-49

Specialists in Bank Stocks

Depts.:

SQUARE, S.W.I

13 St. James's Sq.; Govt.

Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts(:
51 Parliament St. St
Rd.,

•i

Laird, Bissell & Meeds
Members American Stock Exchange

Bar

a

to receive 4% shares of the new Kinnick has been

New

agree.

of

the

^

agreed

A year ago,

be

1959 first quarter-date were

and

in

will

;

six largest, in. New York,

including
the

i

and

dilemma

Guaranty

'

!t

/

.

World

-

met
an

a

«e,1;
9 iniVa an"0UKCftT America Building,
!?JC
0
Pjans to merge, both
Morgan^ and ..Guaranty ran up in
With Meyer Lightner
the open market, particulaidy the
(Special to The Financial Chronicle)
rf w,n hp vpp?,11pd fhaf

Rule of Law Center at Duke Uni¬

versity.

maintained

being the nation's largest by

as

States, the Lord Chancel-

lor of Great Britain, the Attorney
General of the United States and

staff

has

(Special to The Financial Chronicle)

United

House

bank

department for accepting small
deposit
accounts
on
a
savings

that competition is not hot
amon£ the large banks. It is just

tion° in LonTon^n July.'^OsV. Ground
speaker after sodaker at this meet- aroun?

courses

found.

,

Neither

Now, these
One
tics

share

•

hundred-and-eighty - five
of action than massive
military, representatives of the legal pro¬
deterrence
must
somehow
be fessions of many nations of earth
some

merged bank is in competition
with
the others
in the
city.

At the time of the «and

Chief

the-

of notice.

Churchill—eloquent¬
after all the news was out.ly testified that the law must he'
The new bank, Morgan Gudrmade paramount in world affairs.
disputes, - there
An
adviser
to
the
remain the possibility of
President,
miscalculation.
If
this Mr. Arthur Larson, left the White

sword of annihilation is

kind,

iripa

paramount factor in the affairs of

end, however, is sim¬

indefinite preservation
the balance of terror.
an

thp

piare'toe'LlanceVtorons
tne Daiance oi terror as

.

ply

tn

be

which

in

say

.

the

moment

field

been n^de considerably Chemmal CormExch-

].

?otenJ as * 18 amo'^he large
most
of its ^momentum' corporations in any other category.
lawyers.
Mr. CharlesV
the news broke on the
a recent President of the "aergqr, bank stock pi ices firmqd
the

cannot

systems,
a

before the stockholders^ met, the Bankers Trust..^...
Trust

so

surprisingly the movement

advance

be

supervisory authorities had plenty Manufacturers

hope to
in the

can

course,

to

th^e^Fi:^

—"

ease, the reverse is true.
For example, take the matter of
secure
permanent peace
loaning ability of banks. Guarworld except by establishing law anfyX and Morgan as
individual
between nations and equal justice institutions could not make a loan
under law. It may be a long hard of ' nearly as . large a proportion
course but I believe that the pubas
Could
Chase
Manhattan or

the late Senator Robert Taft said:
we

branch

said

special meetings. Further, as the Chase Manhattan-..

most brilliant political

"I do not see how

big

'Meir.luto:: of the
X
within two or.

"

who had

man

a

:

-

long »fe<q\aS March 4. There was (round

""

get?'

what

decision; and isn't

three

and

we

the

see

us

of the

a

came

their

of these things that men can think

one

of banking, nor has it a widespreadbranch system. > Morgan
has operated no branches; Guar-

[in
approving
the>basis.
•
in conformity with
Morgan

is

|

mi nations

yet we have been unable

about but cannot

and
that

tiEis'^b^h

trouble

the

am

to come/to

conclu?

naUonslsH11does anmn^nXw?
ualsi

legislation,
fully satisfied

action

merger

somehow be established to provide

that'as

"I

my

■

business

credit

011l_y .°.n.e these statutes."
.'. third largest bank in New York,
Wthn
/f
The wonder is that it took the and the fourth largest% countrythe
rulethn£ Authorities involved so long wide, Bank of America N.T.S.A.

to the

rule

Fed-

state

anti-trust

eral

Inoan,

fho

TOme

and

the

.

consumer

bank; Clark pointed out that the merged *
institution will
have
but
five ft
branch offices.
Thus, consumer
credit business • which, bulks so"
large with the banks operating

exhaustive analysis had

made of

the

to

com- >

whole-

a

It does not cater

blockianty only several. Superintendent

day or two previous, said

a
an

been

is essentially

r

aspect of human natuie

the West have

Justice

Then, on the newsticker,
came word that, in effect, Federal
Reserve had no objection to the
consolidation.
Superintendent
Clark, the new New York State
Banking Department head had,

And, his-

*-ound

of

that the the loaning capacity to one bortime will come when that public rower is limited to 10% of a state
lute adherence to our principles,
opinion will support the decision banks' capital, surplus and unour commitments and our obliga¬
of any reasonable impartial tribu- divided profits. But consolidated,
tions will prevail.
I specifically
nal based on justice." '
the merged bank can come a lot
want to pay tribute to members
We can also be encouraged by' closer
of the Democratic Party in the
to r competing with the
Congress for putting statesman¬ developments that have occurred larger institutions than they could
Let no one
ship above partisanship by mak¬ in this field in just the past two - as ; separate units.

—that
by

Academy of Political
Ciry, April 13, 1959.

into

In the

matured

of deterrence.

believe

I

that

is

particularly
the policy

construe the America intent.

tion

when

has
since

case

of the
Formosa Straits, the Middle East
and now Berlin, the President and
Mr. Dulles have given the Soviet
leaders no possible cause to mis¬

being

survival

frighteningly multiplied
cAn address

.

.

Washington would not
Morgan - Guaranty

the

i

essentially

the "American
article stating

Department

the

an

merger.

problems of disagreement and resort to force in their personal and
community lives as nations now

clearly

are

current post-Korean crises

nations.

were

major

firm

aggression

containment

policy

.

get."

national re¬
against

our

This

the

been

usual

the

Guildhall

this

©f nations

war

the other,

stand

to

revealed.

connotation attached to that word.

a

those

or

on

Communist

^academic" I share Woodrow Wil-

as

as

atomic

of

disaster

hand,

one

solves
Richard Nixon

©f

well

nf

n,ii«

face

First,

ago.

that

no

way

Korea,

some

©f the far less

Science

is

Bank Stocks

saler* of credit.

hand

to

come

ran

one. in

-

_

have

Banker"

t6findpractical metlipdis;t.bf'/4m?
icy, as it has unfolded since the
plementing this idea. ' Is this one {
time of

science rather

by

the

is

surrender

am

proud to rep-

fion's

as

the slow death of
we must
continue steadfastly on the course
now pursued by the President and
the Secretary of State.
In the record of American pol¬
on

the profession

©

in the hands
the unpredictable leaders of the
are

weapons

ultimate

that

implies
which

ize

these

that

of this 20th
Century human dilemma? For the
immediate
threat posed
by the
provocative Soviet tactics in Ber¬
lin, I believe that to avoid the

of
this organiza¬
tion

'be

should

long

with

disputes between nations.

fact

the

account

into

What

name

than

take

=

anty Trust Company, in its

pieces of news — news

two

that

and

scope

may

there

of the free world.

receive.

very

it

we are

distinguished audience is one of
the most flattering and challeng¬
man

with

of force

use

Men

a

the

'problems

—

day, April 24, the

same

batikj stock houses were regaled ponents,

practical alternatives to the
as a means of settling

new

to achieve sound and reliable framework
of laws which will make peaceful competition possible.

ing

that

in

Week

This
On the

simple
solution for the problems we face,
we
must
constantly search for

replace rule of force. Aware this is not a panacea, the Vicereasons we must end interminable disputes over in¬

invitation

By ARTHUR B. WALLACE

confronted, by sug-

there

while

But

President

An

the

are

answer.

easy

take the initiative in advancing the world rule of law

terpretation if

good

minimize

of

we

gesting

interpretation of future international agreements.
He an¬
nounces Congress will shortly be asked to revise our laws so

to

to

than

harm

gravity

in

may

of

tends

confabs, increasing
cold war and need to encourage more
private investments—Vice-President Nixon's scholarly paper

importance of economic

we

Bank and Insurance Stocks

program,

more

ingredient in agreements from such past

recommends making the Hague

sug¬

suggesting that any
whatever its merit,
can
automatically
solve
the
world's problems is not only un¬
realistic but, considering the kind
of opponent who faces us across
the world today, actually can do

of the coming East-West conference and missing

view

in

%' %%% •* XI "S";.

proposals that I will

practice

one

thoughtful, prefatory gambit to Mr. Khrushchev

In offering a

world's

the

solve

;

gest are not offered as a panacea
the world's ills.
In fact, the

Vice-President of the United States

i

•

for

RICHARD M. NIXON*

By HON.

t

magically

difficulties.

Thursday, April 30, 1959

.

Nairobi;

13

Bankers to the

Ins.

St. James's Sq.

Government in: Aden, ksntA,

UGANDA, ZANZIBAR k SOMALLLAND

Branches in

PROTBCTOKAM

:

INDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE
NORTHERN AND SOUTHERN RHODESIA.

Volume 189

Number 5842

.

.

.

The Commercial and Financial Chronicle

15

(1995)

HIGHLIGHTS

OPERATIONS

OF

Payments
Natural Gas Purchased
i-.

Operating Payroll
Other

..

.

.

Net Income-

.

.

.v

.

.

131,382,000

..

114,590,000

.

.

.

.

.

$

.

.

.

$

68,317,000

.

.

.

$

136,045,000

.

.

.

.

.

.

.

.

_

535,644,000

.

V-

..

.

Expenses and Charges

.

.

.

....

.

.

.

$

$

Operating Revenues and Other Income
Taxes and Franchise

,

.

.

$

85,310,000

.

$ 2,290,957,000

$3.83

Earned Per Common Share (on average shares)
Total Assets

!

Construction

Expenditures

.

...

.

.

.

.

.

.t

,4.

.

.

.

.

.

Sales of

Electricity to Customers (KWH)

.

.

.

Total Customers
Number of

t

(MCF)

.....

Employees

.

Number of Stockholders.

*

.

.

.

.

.

.

/

.

.

.

18,486,314,000

.

710,199,000

!1.

323,539,000

.

.

.

.

.

23,125,794,000

r

........

3,440,902

Electricity Delivered for Account of Others (KWH)
Sales of Gas to Customers

192,113,000

$

%

.

Electricity Generated and Received (KWH)

.

'.

18,299

.*

.

:

226,180'

.

a.

PACIFIC

GAS

COMPANY is

AND ELECTRIC

art

ir»

service throughput

gas

and

ern

Central

located and

a

large part of North'*'

California,

with

property

operations carried on entirely ii*
territory served embraces an

California. The
area

of 94,000 square

miles. Incorporated

un¬

der tlio laws of the State of California
October

10,

1905, its

oi%

lineage extends dcejr

into the Gold Rush

period. Its earliest pre¬
the San Francisco Gas
Company/ organized in 1852. Electric oper¬
ations date back to the incorporation in.18791
decessor company was

California

of the

From these small

Electric Light Company#,
beginnings the. CompanyJE>.

progress nave continued until to*"
day it is, by most standards of measurement#
the largest utility of its kind in the Unit"it|;

growth and

States.

..

.

•

.

.

\

At 6,500 feet elevation

in the High Siefra;
workmen set rein forcing steel
.

on

the face of P.G.&E.'s

Wishon Dam

with conventional

'

revenues and sales:

construction:

Gross

in the

Late in 1958 the two billionth dollar was spent on the
Company's postwar program of expansion, and it is
expected that about $156 million will be spent for this
purpose in 1959. The proceeds from securities sold to
date to finance this program—bonds, preferred and

to

commonstocks—haveamountedtoalmost$1.4billion.

operating revenues from all sources reached an
all-time high of $554,778,000 in 1958, an increase of
$33,554,000 or 6.7% over the previous year.
.

•.

Total unit sales of both the Electric and Gas De-

partments

previous

substantially the same
which on the surface might

were

year,

indicate that the business recession had

as

appear
a

*
>

-The principal feature of

material

the Company's business. The fact is, however, that sales in both departments were severely
restricted by climatic conditions. Under normal climatic conditions both departments would have shown
satisfactory overall gains in sales.
r
impact

•

"

on

"

,

;

our construction activities
the completion of 685,500 kilowatts of
electric generating capacity, consisting of both steam
and hydro units. Our installed electric generating
capacity now totals 5,219,000 kilowatts in 76 plants,

in 1958

'

,

...:

was

this field.

/

!

-

"v:-gas supply:

plants. The Company has IdoctF
actively engaged in this field since 1951, and is
engaged in more nuclear projects than any
electric utility.
-'fv:
While the Company will undoubtedly contimfe
build conventional electric generating plants for r.i.any \
years to come, recent advances in reactor technology*
suggests the possibility that competitive nuclearp.o'y/sP.
plants will become a reality much sooner than was
thought likely only a few years ago. The Com^dnyJ'
intends to stay in the forefront of developments in*

."%•

/£.

,?

£-

'

outlook:

.

Taking a realistic vie\V of the future, it must bo
>
nized that the Company's well-being as a bnsfr.T^'
stock amount- v'v supply,; originated from out-of-state sources, prinenterprise will depend largely upon the wisdom
ed to $66,974,000, or $8,690,000 greater than in the
i cip^lly from fields in Texas and New Mexico,
which governmental policies are formulated an i' act*
previous year. These earnings /were equivalent to
-d'/With aview to obtaining an independently conministered. Policies calculated to encourage ri
$3.85 a share based on an average of 17,502,415 shares
/. trolled natural gas supply, the Company is continuing /
encroachment by governmental agencies into 'Ct'vV
outstanding during the year.' This compares with i. its efforts to obtain a permit through its wholly-owned
commercial power business, or policies that vrari'd1
earnings of $3.41 a share based on the average num- "-•/ subsidiary, Alberta and .Southern Gas Company, Ltd.,
result in further inflation and erosion of the purd;a^
ber of shares outstanding in the previous year.
£•.to export natural gas from the Province of Alberta
ing power of the dollar, would be harmful not 'czdj*
'
•'
in Canada.
*
•
4
net earnings:

Net

~

earnings available for the

.....

-Cyyvsrln 1958 approximately 72% of

r

our

total natural

gas

common

.

.

•

customers and employe j ££t
urged to take a strong sCr.ncT
against any such policies and to make
known to their elected representatives.
/
to investors but to

dividends:

well. Stockholders

nuglear power:

The Board of Directors

on

December 17, 1958 in-

creased the quarterly dividend rate on the common
stock from 60 to 65 cents a share. While applicable

io the last quarter of the-year,
the

new

rate

was

not

««

Much progress was made during the year toward the

goal of producmg nuclear power at a cost competitive

our

are

.

>•

the first dividend at

paid until January 15, 1959.

FOR

•*.

THE

BOARD

OF

DIRECTORS

Chairman of the Board

PACIFIC GAS and
245

For more information on this




MARKET

ELECTRIC COMPANY

STREET, SAN

FRANCISCO 6,

CALIFORNIA

dynamic company write K. C. Christensen, Vice President and Treasurer, 245 Market St., San Francisco 6, for P.

G. & E.'s 1958 Annual Report

J

The Commercial and Financial Chronicle
16

.

Thursday. April 30, 1959

.

.

(1996)

atomic

and

well

tive business last year

back

to

to

profits in
apparently

taking

nudge to new, record peaks in which
some
their average this week again, to
but strength was selective and holders.
pretty much confined to elec¬
tronics, chemicals and a few

The

of

the
was

business

it

supplied

trimmed to

individual than

the

its

only

little more

a

the

quarter of sales

a

year before. A good part of
the sharp upturn came from

accent

was

By CARLISLE BARGERON

activities had been

such

issue
a hint

of

Washington
Ahead
of the News

than half of sales after

more

continued

Industrials

From

boosted

where

section

this

WALLACE STREETE

By

as

Ironically,

sharp pickup in its locomo¬

a

THE MARKET... AND YOU

lines

energy

railroads.

as

Olga Khvaleb- could come much sooner, of
Vice-President of the Soviet course, if Russia would spend some
Union's Society of Dissemination time on manufacturing them and
of Scientific Knowledge, has been less on building for the cold war.
In" Russia, of course, they use
touring
the
United

rather foreign buyers.
v

v

A Russian woman,

nova,

States,

in

"women

fa

this

and she sees a

v

does

armed forces

the

not

mean

as

and

WAACs

or

WAVEs. They shoulder guns and
specialties. Rails and utilities heavily centered o n stock
bright ray of
It was also true that Alco's hope for
serve
in the front lines.
Their
were laggard and given to a
split items, even du Pont
merchant marine is armed with
gentle downdrift more times something of a regular on the large 1958 position in the rail¬ downtrodden
women
crews
who
throw
the
American
than not.
list of new highs despite the road business was abetted in
women.
'Be¬
heavy ropes over to the men on
fact that the company had all part by the general business cause of their
the dock. They have unquestion¬
ably attained equality with the
but ruled out any stock split recession. But the non-rail ac¬ vim and vig¬
; The pinpoint demand was
men, if that is the sort of equality
such that in the electronic sec¬ here pending settlement of its tivities seem assured of perk- or," she says,
they want.
.; t
"they should
tion
Zenith
came
close to anti-trust troubles and its big ing up perceptibly this year. soon be able
In this country we have laws
bundle
o f
General Motors Even if earnings no more than to attain their
for the protection of women, re¬
showing a peak price double
quiring that they can only be
approximate last year's $2.32, rightful
its 1959 low while Texas In¬ shares.
worked for certain periods. To my
the dollar dividend is well place."
Mad¬
struments had about doubled
mind it is an insult to tell them,
ame KhvalebCarlisle Bargeron
covered and less than half of
from its low to its high and
While stock splits per se do
that on account of their vigor and
nova is unique
General Time nearly tripled. little for the holders, the splits per share profit. The indicated in that she is one of the few energy, they will soon be able to
catch up with the men; do the
in the better-class issues yield is well above 4% % with women in Russia who is not be¬
Emergence of Profit-Taking around have been accompa¬ some room for the payment to hind a plow or working op the same work he does; reach an
,

As

has

happened before, nied by moderate dividend
too, the latest selective ad¬ boosts, actual or promised, so
vance
brought out some the big play in share divisions
profit-taking that gave the list wasn't entirely illogical.
some
ragged moments and
Zenith

even

and

wasn't

occasion

on

immune

it

ranged

from plus to minus sides on

given session with

4

of

around

which

was

wild

a

a

score

a range
of points

best described

as

performance.
c

The

c

o

notable

exceptions to
the strength continued to be
the
same
major industrial
groups — oils, aircrafts, steels
which

best,

numerous

farm

about

were

nonferrous

With

many

....

individual items in

equipments/home build¬

•"

.

-J.

■

■

-S:«.

„

Motors Buoyant

shares

for

a

reports of an

to

It

institutional
an important

ago

030

area was

one

of

high, the
showing up as

some

new

and

—

have

recent

more

not changed

—that

the

my

do

women

visitors

impression
all of the

They remind me of
comic strip Snuffy Smith, the

buyer taking on
commitment. Demand for cars

heavy work.

picked up in April to hint that
the spring-summer peak de¬
mand period might be return¬
ing as a seasonal factor. And
the Big Three are seemingly
committed to compact cars in
their new models to help de¬

Loweezy takes second

the

mountaineer

lazy

mand

nearly

An

Interesting Laggard

third ahead of last

a

whose

wife

year.

Similarly, W. R. Grace
Favor among the Big Three
which is one of the more di- rotated pretty much through
versified operations around, the group. GM which made a
has held in a tight, five-point relatively better showing last

resistance. While range

for

the

year

despite

while

meals

the

all Snuffy

ever

from the
"revenoo-ers" and play cards, and

does

is

keep

to

go possum

away

work

Women

night

however, there was little in
the performance that indicated any major troubles developing although the feeling

Projections show a good re-,
bound possible this year, par-

ticularlY with the chemical
operations continuing to grow
and final results could ap-

was

nmiversal that confirma-

Proach the earnings of 1957.

tion

by the utilities and rails

Even on tbe reduced dividend
the issUe: offers an adequate

would

make* the >' upward
thrusts easier. '
' '
V
"
*

yield of be t ter,than 3%%'

*

/

..

n

.

'

v

Retreat in A T & T

/

which obviously could change

sharply • if the dividend is
quality of the leader- upped in line with anticipated
ship continued good although better earnings.
American Telephone had
*
*
*
turned laggard after its virLike the" prime rail shares,
tually uninterrupted climb all those of the railroad suppliers
this year.
It retreated less have been definitely laggard
The

than

the

a

score

of

normal in

points from

even where, as in the case of
entirely Alco Products, formerly
the face of the American Locomotive
Co.,
since its stock large strides have been made

peak which

year.

the

be

more

the

and

divi¬

dend it retained is almost cer¬

tain

boosted

be

to

fashion. For the

in

the

of

case

all right.

end its reliance

on

one

in-

The record showed that dustry.. Alco :today serves
of the funds had been chemical,
petroleum-,-utility




They have

It is

work.

visitor

to

an

for the
brigades

eye opener

the

see

work

Their

overlords.

which

babies,

they give birth to on the fly, so
to

speak, have been taken off to

school, their care com¬
taken over by the State.
mother sees them only
at

pletely
The

birth

and

from then
had

a

the

has

satisfaction

of knowing that she

on

baby.

Madame Khvalebnova
apparently reached a po¬
Soviet'

For every

who has

sition of distinction in the

policy, and in this instance was
sponsored by the National Council
of Women in cooperation with the
State
In

of

her

statements, the

and she said these
coming to Russia soon. They

in the kitchen,
were

hundreds of American women who

positions
business. As a
way the hus¬
bands are dying off, women have
come
to own about 85%
of the
wealth in this country.
They
wouldn't swap positions with Mad¬
have attained prominent

Department.
view

regime, and who probably has an
apartment to herself, as distin¬
guished from the rank and file
who live six to a room, there are

in

industry

matter

ame

and

of fact

the

Khvalebnova.

You

can

moved
,-i

Now H. F.

Weekiey & Co.

WASHINGTON, D. C. — The
firm name of Mutual Funds Cen¬
ter, D. C., 3433 Connecticut Ave¬
nue, N. W., has been changed to
H. F. Weekiey & Company.

America n

Morgan Guaranty Trust Formed by
Announcement is made that
pany

of New York began

Merger

the Morgan Guaranty Trust Com¬

operation April 27, 1959 as the "banking

time

a

views
do

not

coincide

those

this

in

expressed
necessarily

at any

with

of

"ChronicleThey
as

V

narrowly.-

[The

article

those
are

the

presented

of the author only.]
Henry

With Nikko-Kasai
(Special to The Financial Chronicle)

SAN

FRANClSCQ, Cal.—Yoshio

Hoshino

is

now

affiliated

Nikko-Kasai Securities
2165

rest

assured of that.

higher-than-expected 60-cent quarterly divi¬
dend, were pretty much bal¬
anced off by the specter of in¬
creased competition from the
Big Three, and these issues

Motors,

not

only the equal but the predomi¬
nant right to do all of the heavy

some

independents,

good earnings statements and,
in

Mrs. Roose¬

Olga Khvalebnova's
visit to this country was under
the
so-called cultural exchange

dramatic

nominal

rights,

was

sharp runup
split was announced late last to
some

item

as

white collar jobs.

year

could

To the market technicians

But even such

redoubtable soul

velt vigorously opposes them.
In Russia the women have equal

nursery

hunting.

than its competition,
intra-day levels were posted what many market students isn't expected to show any question arises as to just what
purpose it serves. If we had made
well above the line, the aver- call a substantially improved
startling gains but it is a solid no more impression on her than
age had trouble holding above outlook. Like United Fruit, merchandiser. Ford seems that she sees an opportunity for
630 by the time the closing W. R. Grace has been hobbled
the American women to catch up
definitely destined for a sharp
figures were compiled. This f° a degree by unrest in the rebound from a drastically with Russian women and attain
their "rightful" place in society,
week's, as well as last week's Caribbean and Latin Ameri- lower 1958
profit. Chrysler, then her visit has been wholly
peaks, actually were achieved can areas it serves. These, plus with its limited
capitalization lost on her.
while more issues were de- the economic recession,
She did admire our labor sav¬
and the prospect of snapping
qlining than advancing.
trimmed W. R. Grace's results back from last year's red ink, ing devices by which a woman no
longer breaks her back washing
*
*
*
last year rather sharply. But
clothes and spends all of her time
„

a

place to the
of them marching to work, armed
hound dawg in the family.
She
with picks and shovels and other
does all the plowing, chops up the
kindling for the fire and serves implements herded by their men

Madame

"

ritory with each

s>:

equality with him.
The League of Women Voters
has long been campaigning for
what they call "equal rights for
women, doing away with all dis¬

observation criminatory laws.

visit to Russia some 20 years

a

on

^

/■' "'/•

this writer's

was

shifts as
during the waning well as day shifts in Russia. Out¬
but the issue held in a narrow,
months of the year. Total pro¬ side our hotel in Moscow, they
five-point range all this year duction of the industry now were working all night long on a
until it sagged to the new
street railway. All of the workers
is being projected at a rate
were women.
The men had the
lows lists this week.

ing, cement shares and foods.
For the industrial
average
that forges into uncharted ter-

heavy duty on
I doubt seriously

will ever want
attain what she considers their

change, rightful place.

were

on

doing

or

building.

some

if American women

buoyant for the most.
General Motors headed the
of the blue most active list on one session

specialties at a comparatively
high level, there was the in¬
evitable culling out of lag¬
gards in the list but—so far—
without affecting market fa¬
vor appreciably. United Fruit
has been picked up by as
many analysts as any issue
around as one that ought to
turn the corner momentarily,

and

„-.v; 1

,

Auto

chips and electronic and drug

steady at

metals

so

street

be sweetened somewhat.

CaliTorftia

Street.

with

Company,
~

C.

Thomas

Alexander

S.

institution formed by the-merger of J. P.
ated and

Dale

Lamont

E.

Sharp

Morgan & Co. Incorpor¬

Guaranty Trust Company of New York.

Board; Thomas S. La¬
Dale E. Sharp, President

Henry C. Alexander is Chairman of the

mont, Vice-Chairman of the Board; and
of the institution.

~

-'

-

>

Volume 189

Number 5842

17

(1997)

Commercial and Financial Chronicle
The

,..

OIL DIVISION...new

of

source

Texas Eastern
A

operating unit

new

—

Texas East-

Division —has

Oil

ern's

place alongside our other two
which

sions

divi¬

pioneer

our

\

transmission pipeline A
"Little Big Inch" petroleum*

natural
and

operate

I

taken its

gas

our

products pipeline.
The Oil

Divisien is

Oil and Gas

division

a

Company) into

production,

single

.

exploration,'
refining, - gas i

...

custom

processing.
The

a

operating in four oil and ;

industry fields

gas

regrouping of

units (including La Gloria

company

:

*

exploration ami production section

is

busy exploring in nine states and

is

producing from

some

800 oper¬

ating wells.

-

The La Gloria
custom

refinery at Tyler, Texas,

refines

aviation

.

^

high octane auto and

gasolines

—

sortment of other

and

wide

a

as¬

products, includ¬

ing jet and diesel fuels, heating oils
and

petroleum coke. Already
America's

of
,<W"

eries,

most

Tyler is

one

refin¬

modern

expanding for the

future.

,.tM"

The natural gas processing plant at
ivmm

Falfurrias, Texas—one of the world's

largest-processes some 325,000,000
cubic feet of gas

processing,
of

recovers

valuable

i

daily—and, in the
large quantities

petroleum liquids, in¬

cluding natural gasoline, kerosene,
butane

and

propane.

A

new

liquid separation plant will

gas-

soon go

into service in South Louisiana.

Texas Eastern Oil Division has grown,
will

and
on

and

continue

formula of

a

grow

lustily

an

an

idea in 1947

$800 million organization in

1959—a

busy, versatile worker in the

service of the nation and all

of America's

phases

petroleum industry.

I
OIL

AND

GAS:

Exploring and Producing
NATURAL GAS:

fs/s7s>&

?

Processing and Transporting

»TfiiWTf^i-nr
OIL

PRODUCTS:

Refining and Transporting

TEXAS EASTERN
PIPELINE SYSTEMS

/&Z7,
EXECUTIVE

■''M/t':.




OFFICES:

H O U S TO N

.

T E X A S

f

diversification which has built

Texas Eastern from
to

to

planned expansion

-

18

The Commercial and Financial Chronicle

(1998)

exemption from taxation of qual¬
ified pension, profit-sharing and
bonus funds.
Many thou¬

The Mallei of Tax

Equality
For Mutual Savings Banks

to
t is
funds have been1 Thanks
favorable;,, tax
under this section of, treatment, they have become the
the law and enjoy full exemption fastest growing;b£;rmajor Abierifrom
Federal
income -taxation. cail financial institutions.
The resources of such qualified
it is reasonable to suppose that,
trusteed funds are well in excess
as; credit unions come of age, proof $20 billion at the present time.
vi-ion will be made to discourage
.

means, Mr. Ihlefeld
exactly as you would tax common trust
by commercial banks, credit unions, trusteed pen¬

equality for mutual savings banks

Tax

As

,with

asserts, taxing them

and

funds

ment of

run

The banker contends

sion funds and mutual investment funds.

unlike

and mutual

banks

commercial

.

financial institutions

two classes of

as

savings banks

about

are

which

for
for

Both

Equality is defined in Webster's
dictionary as "likeness in status

quality."

■or

My plea

is

for

tax

who

pants,

comparable with that provided in

tal

status

Commercial

or

Commercial

not like

are

in

banks

1

status

differences

The

be-

and

many

profound.
Commercial
barbs

are

owned

Section 584 of the 1954 Internal

by

tions

by

have
ent

tors.
August Ihlefeld

are

conducted

of their stockholders.
savings banks are con¬

profit

Muluc.l

for

ducted

The

mutual

of

benefit

the

depositors.

their

of

primary purpose
banks is to
savings of these

savings
the

cafcorard

should
are

for

depositors, paying a rate of return
savings deposits that is justitied h'j earnings and the need for
cnak t dning
reasonable reserves
cmd s: rplus to absorb possible fu¬

it

has yet

Bavin;

Danks

s

and

i

provide

highly

a

non-profit institutions

only.

In New York, the leading
oank state, the law sets
a Ii.pl;;, of $10,000
on deposit accormli in mutual savings banks.

cavmps

ckese

Id.

and

commercial

Bavin;
in

;•

about

commercial

that
tual

The:

e

are

iinrm; ml
which
Bavin;

in Status
a

unlike

as

two

as

number

of

include

banks

taxed

as

-

if

tual

basic

Neither

or

quality,
trust

common

pen-

nds and mutual investment

banks

nor

issue

capital

credit

nor

mu¬

income

lower

for

unions in
loans

groups,

the form of

mutual

and

con¬

savings

banks in the form of home mort¬

loans.

Both

highly

are

thrift

specialized

institutions,

oper¬

entirely mutual basis.

on an

Section 501 of the 1954 Internal
Revenue

Code

"unions

provides

that

without

capital
stock organized and operated for
mutual
purposes
and
without
profit" shall be exempt from Fed¬

eral income taxation.

The

the

on

Act

Revenue

pressed

of

1954,

Trusteed

Pension

Funds

Moreover,

the

least

*

90% of their ordinary income are
treated
This

conduits of income, y.....

as

method

of

permits investors to
use
-

in order to ob¬
tain
skilled, diversified invest¬
ment in corporate securities with¬
corporation

a

..

This

language

well

be applied in
savings- banks

can

mutual

to

mutual

to

as

funds.

investment

of

A:

Problem

One

com¬

underlying principle

and

investment
are

funds.

the

A

for future

v

mutual

that

savings

banks

deposit
of

tions:

ing;;

as

how

see

compare

banks.

with

Then

these

Internal

of

assets

in

for

computing

surplus and reserve ratios in
mutual savings banks for taxation

they

exclusive

purposes.

These provisions of law

have established

an

effective safe¬

guard against retention of earn¬
ings beyond what is reasonable
and necessary for the safety of the

we

can

sav¬

note

tiow

t ley
are
taxed under the
Hevenue Act, and whether mutual

savings banks
a

are being taxed on
basis of equality with them.

Common Trust Funds
Common trust funds,
©f which
mercial

are

a

number

these

institution.

exists,*- however*

withhold

mutual

income

entities

from

the

maintained by com¬

banks

and

trust

compa-

a

mutual

number

holds

sharing

and

Trusteed
mutual

of

Baaks

York,

Annual

Meeting
of
the
Association of the State

Savings
of

New

New York City, April 22, 1959.




banks
The

ways.

for

in

same

trusteed

profitbonus funds.

stock

pension

savings

funds,

banks,

their

are

like
man¬

beneficiaries.

Neither issues capital stock. Both
undertake to safeguard the per¬
sonal

financial

ficiaries
°An address by Mr. Ihlefeld before the
©6th

of

true

savings

re¬

jective.

as

security of bene¬

their

overriding

ob¬

■

Section 501 of the 1954 Internal

Revenue

Code

restates

the

full

sur¬

plus during recent years.
Even

whose

mutual* savings

bank
growing at a
7% and whoe surplus and
ratio is growing at a rate
a

deposits

rate of
reserve

are

of 3 %' per annum—a' not uncom¬
situation

mon

losses

bond

as

incurred

are

time—would

other

and

time

from

its

see

surplus

8%

over ;

within

to

and

ratio decline from 12%

reserve

to

decade.

a

The

year-to-year flow of sav¬
into a mutual savings bank
causes
a
compounding of the
growth of deposits that can lower
the ratio of surplus and reserves

ings

have been incurred of late should
to

be

in

taken

the

future

To tax retained earnings of
mutual savings banks would seri¬

The

12%

.

.

ratio specified in the

It

was

adopted

by Congress in. 1951^ after consid¬
erable discussion and debate, as a
desirable yardstick for taxing re¬
tained earnings of mutual thrift
institutions

under

the

conditions

prices, would preclude any lower¬
ing of this ratio of surplus and
to

deposits, beyond which
earnings become taxed.

reserves

retained

Conclusions
Both

as

matter of

a

to encourage

equity and
thrift, savings banks

must be taxed

ity

with

on

basis of

a

financial

equal¬

institutions

of

like status and quality. At a time
when our national economic poli¬
cies seek to foster

able

economic

sound, sustain¬

growth, to combat

inflation and to promote personal
financial security, unequal and

reserve

signed

to

retention

limit

'of

case

of

common

as

a

funds

mary

in¬

purpose

in view, which is

the

protection of the depositors
in mutual savings banks from a

by mutual entities.
the

ratio not

par¬

provisions in the Revenue Act de¬

In

funds

making material additions to

Congress set a 12%

may

trust

come

semble

pension

sales of Govern¬

on

surplus and burdensome taxation of mutual
goal, but as savings banks would be indefen¬
a
maximum
beyond which re¬ sible.
ticipants to an excessive extent tained
earnings would be taxed. A
to reduce the tax liability of the
lower maximum, it can be demon¬ \# Common trust funds, credit un¬
latter. To discourage this, we find
ions, pension funds and mutual
strated, would not achieve the pri¬
investment
that

aged by trustees solely in the in¬

mutual

Trusteed

of

that

ment securities have prevented a
number
of
savings v banks from

Revenue

basis

the

weakening of their institutions.
Mutual savings banks have an
extraordinary record
of safety.
Not
a
single savings bank was
income of the common trust fund, forced to suspend payments dur¬
whether distributed to him or not,
ing the early 1930s when com¬
in his taxable income.
As a re¬ mercial bank suspensions were
sult, there is no tax advantage to painfully
frequent and wide¬
the beneficiary in withholding in¬
spread. Reserves and surplus that

institu¬

is

fact

Regula¬

liabilities.

the

prescribe

terests

Let

realized losses

The

chosen at random.

e

.

the

outside

possibility

additions

net

ing that time.

Revenue Act of 1951, it is impor¬
tant to remember, was not a figure

Bank

Savings

Formula

valuation

mutual

of.

for

make

stock¬
directly

The Revenue Act of 1951 pro¬

Service

participants,, rather
stockholders,
they are taxed not directly but
through taxation of toe income
received by their beneficiaries.
than

the

on

•

Mutual

their

Because

for

operated

benefit

qualified

not

have

cushion

a

tions

gov¬

the taxation of common trust
funds, credit unions, trusteed pen¬
funds

could

retained earnings to Surplus dur¬

also.

in other words, so long as the
aggregate of all earnings retained
in the past less realized net capi¬
tal losses—do not exceed 12% of

erns

sion

take5 the

-

savings bank with

depositors to reserves, without then prevailing. Changes in con¬
payment of tax, so long as surplus, ditions since, such as the sharp
undivided profits and reserves— decline
in
Government
bond

Excessive

of

mutiial

in¬

or,

The

Let: us

example of a
a 12%
ratio of surplus and reserves to
deposits whose deposits are grow¬
ing at a rate of 7% per annum, or
slightly less than the national av¬
erage for 1958. That savings banks
would see its surplus and reserve
ratio decline to only*8V2% within
five years if, for any reason, it

-

regulated

add earnings in excess of ex¬
penses and interest-dividends
to

grants special

the Congressional

by

to

adequate

only on
existing assets, but also on
those to -be acquired.in the future.

net

may

tax treatment to qualified invest¬
ment companies, for the/ reasons

given

re¬

instance by

beneficiaries

V

v

vides

1954

*;

The

...

Code

or

provide

losses.

having to pay an additional
layer of corporate tax."

as

and

surplus

their

,

to

out

essence

and

absorb possible losses not

ously aggravate this threat, except
where
the
surplus and reserve
through reducing the asset value ratio, is quite atopl? for future as
of their shares.
In this respect, a well as present needs. >Thev 12%
mutual savings bank is like a ratio, but>no lower percentage,
credit, union.
Hence, it is abso¬ provides a suitable yardstick for
lutely essential for the safety of determining when surplus and re¬
these thrift institutions that they serves are ample, so that a tax on
iriake constant additions to re¬ further retention of earnings be¬
serves
out of retained earnings comes justifiable.

c o m-

at

fall

funds

holders

.

of

assets

on

trust

distribute

by con¬

vestment companies and common

L';:,

investment

growth.r Hence, they require re¬
serves

whereas

itself,

entity

losses

follows:

"Regulated
panies which

tax

little

any

in the first

absorbed

ex¬

ified mutual investment funds as
!

and surplus to reduce the ,
liability of depositors if^we i
keep In mind the fact that mutual
savings banks cannot sell; capital
stock
to ? margin
future deposit
reserves

losses on
assets that may be incurred by a to
deposit liabilities quite rapidly
mutual
savings
bank
must
be if bond losses of the kind that

the philosophy of Con¬
regards taxation of qual¬
%

taxed

company.

profits

undivided

plus,

Fi¬

Senate

the

are

trast, have nearly S10 of deposit
liabilities for each dollar of sur¬

and- Means

Ways

and

taxable

the

Mutual savings banks,

.

Committee, in their reports

nance

become

to

share¬
not paid

profits

Hence,
as

so

serves.

House

come

fund:.,.,

for

their

of

the investment

to

public

Earnings Retention

unions

ac¬

income of shareholders

mu¬

savings banks are organized
or operated for profit.
Both groups of institutions seek
to promote thrift.
Both provide

credit

to

Committee

investors.

popular

mutual

unions

tual

gage

out

this tax."

enue

certain

in

credit

savings

stock to

sumer

submit

regulation
and perforin the function of per¬
mitting small investors to obtain
the profits and diversification of
risk might well be exempted from
that

holders.

investment trusts

fide

that "bona

income

taxable

a message

Section 851 of the Internal Rev¬

mutual

not

reserves

may

ing; earnings and so reducing the

mittee.

Neither

other

funds, rredit unions, trustees'
Bion 1

institutions

is served

to Congress on
a proposal to tax dividend income
of corporations, had urged in 1935
velt, in

mu¬

respects.

ating

however,

resemble

banks in status

j

These

and

resemble

unions

savings

7?

Quality

institutions,

closely

propose

different in status and

so

Credit

credit

institutions

or

unjus¬

as

to

banks

quality,
should be
they were equal.

credit

•

;Lu.ke

as

banks,

savings
are

be

absurd

and

tified

trust

common

would

This

funds.

that

and

banks

cial

but

no
necessary
purpose
in their case by retain¬

sequence,

Qualified investment companies
received special tax treat¬
ment since 1936. President Roose¬
have

banker pjOol their funds through the.

forward to propose
equality of taxation for commer¬

mutual

quality

financial

and

status

in

come

respects,

and

be.

can

/

of

s

are

and

st. tus

clar""

,

oanks

s

other

banks

two entities

the

Credit Unions

specil ized thrift service for individu.:.':

it

as

Mutual

individuals.

as

is

commercial

No

rlv; -mkv J:;..-

Commercial banks furnish a
comprehensive banking service to
bus!:'. ess and governmental bodies,
v.

This

different

quality.

1

us

commercial

the

of

be, since

so

on

ture losses,

that

themselves.

banks

Commercial
banks

tax status entirely differ¬

a

from

plan,

additional

Regulated
mutual
investment the
purpose of
absorbing losses
companies are like mutual sav¬
on. investments.
a
ings
banks
in
important
re-'
Regulated investment companies
spects.
V- '
must pay out at least 90% of their
Both are conducted exclusively
income as dividends if they are
for the benefit of those who en¬
not to be taxed as ordinary busi¬
trust their savings to these insti¬
ness
corporations.
In
addition,
tutions, rather than for the profit
of outside stockholders.
In both, they-are taxed on earnings which
are retained -instead of being paid
cases, the recipients of distribu¬
out;
Since an investment com¬
tions pay tax on the income re¬
pany
has no liabilities of con¬
ceived.

gress as

main¬

funds

trust

commercial banks thus

tained by

their deposi¬

the

participant."

Common

are

d

be

of such sec¬
having been received by

as

such

tual savings

e

not

to

sidered for purposes

tioi&ers. Mu¬

© w n

"a

shall

fund

trust

common

that

specifies

Code

Revenue

amount of dividends shall be con¬

theirstock-

banks

to

ex¬

cases,

taxation under this
chapter and for purposes of this
chapter shall not be considered a
corporation." The Code goes on
to
state that "the proportionate
share of each participant in the

institutions
are

both

In

i-

subject

of

groups

out profits

pays

pants.

the

twcen
two

in

Quality

banks

savings

quality.

or

nor

stockholders.
penses

Banks Unlike

Status

stock

pay
income tax - on
Neither issues capi¬

of operation are deducted
from earnings to determine the
income available for the partici¬

quality.

or

mutual

entities of like

for

participants. Both
distribute their income to partici¬
of

such income.

for other

solely

conducted

are

benefit

the

treatment of mutual savings banks
the law

respects.

banks in all essential

benefits to be paid out

the

under

cumulate

savings

mutual

resemble

nies,

income

qualified fully tax-exempt

a

and other

Companies».

Investment

of

pension trust, the trustee may ac¬
cumulate jtoseiveitd fund pension

"--V'-'h;

quality.
Regulated

that statutory ceiling
of 12% surplus and reserve ratio prevents impounding excescave amount of income to reduce beneficiaries'
tax liability.

I
want
to
make
a
plea
equality
of tax
treatment
mutual savings banks.

are

owners

and places great importance on the fact

*

In

savings banks,
like them in status and

mutual

of

withhold ing -

undue,

from participants in. these mutual
institutions. •
'
•
-

yardstick for the tax¬

a

ation

be—the for¬

can

funds

trust

common

unions, the tax treat¬
qualified pension funds

credit

provides

as

and not depositors
and the latter for exclusive benefit of their owner-depositors—
operated for the benefit of their

mer

of development.

such

of

sands

York City

Company, New

Banks Trust

Savings

by

their

qualified

By AUGUST IHLEFELD*

President,

credit unions to margin
growth, since they are in

plus

the earlier stages

stock

Thursday, April 30, 1959

...

funds, this possibility is precluded
because each beneficiary includes
his pro-rata shai-e of the entire

within the trust.

proved adequate to absorb the de¬
subject gression losses that were incurred
to any limitation on income re¬
explain this gratifying record.
tention
as
yet.
Compared • to "1 We can readily see why Con¬
mutual savings banks, they arc
gress selected
the 12% reserves
relatively new institutions.
The and surplus ratio as a yardstick by
Credit

Revenue

building

unions

Act
up

of

are

favors

not

.

the

reserves

and

which to judge whether

rapid
sur¬

•

br.nk. \yas

a

savings

accumulating excessive

are

like mutual

savings banks in status or quality.
They provide a standard for equal¬

ity of taxation for mutual savings
banks.

All

income

distributed

tual

taxed

are

institutions

to

by

by taxing
these mu¬

their

partici¬

pants.

Congress
for

approved

a

formula

equality of taxation for

mu¬

tual

savings banks in the Revenue

Act

of

1951.

Savings banks

were

authorized by law to add retained

earnings to
ment of

tax,

reserves without pay¬

so

long

and reserves of

not exceed 12%

a

as the surplus
savings bank do

of its deposit lia¬

bilities.
The
mutual

12%

maximum

ratio

savings -banks," like

for
pro-

Number £842

Volume 189

.

The Commercial and Financial Chronicle

.

.

(1999)

eSfiAH

Blyth & Go. Celebrates
Anniversary

45th
J'

SANTA

Blyth

BARBARA,
Calif. —
Co., ;;Inc., one of the

;

&

nation's leading investment bank¬

last

week-end

San

45th

its

ing Jfirms,
observed
anniversary'

Francisco

by Charles R.

Hl^^,

,

.c T 6 R- B""»,

Blyth, Gcbrsc

C. Leib and Roy L.

Shurtlcff with

of, Jess,vthan $10,000, the
today
has" 24
offices

capital

company/

throughout the United States, over

C.

George

700
of

i-eio

employees
three

founders

the

of

active as
Chairman
Messrs. Leib and

currently

are

Blyth

Board;

Shurtleff

funds

;
the : company's

of

Mr.

officers:

capital

and

$33,500,000.'
All

Snuruett

i-.

as

Vice-Chairmen.

as

Blyth broke the usual east-west

expansion pattern when in 1919 it
established aNew York office,

having

the company's first branch
in

established

been

Angeles

earlier. In subsequent

three years

offices

moves,

Los

delphia and

in

opened

were

Seattle,. Portland, Chicago,

Boston and

Phila¬

later in

an

anniversary

message

Blyth

to

stated

his

associates,

that

"Blyth & Co., Inc. has played

a

Mr.

privileged part in the raising of
capital

investment

new

for

the

continuing expansion of our econ¬

The role of the investment

omy.

banker is

bring,
But

if

vital

a

the

''What

one.

no one can

it

be

true

of the future may

the

past,

the

future

foretell exactly.
that

the

image

be disclosed in

I-believe

we

can

optimistically."




dustry and many others.

,

Steel for the appliance in¬

National, through its new

age

products—the fresh appeal of

new

face

colors or

textures—plus eight built-in manufacturing economies such as

eliminating painting operations and reducing capital equipment.

v.

Enamelstrip Division, is opening
and cost savings. How so?
Through two lines of beautiful pre-coated metal in coils. One:
metals with enamel coatings in almost every color imaginable.
The other: metals with laminated vinyl coatings in an almost
limitless variety of colors, patterns and textures—every one of
them with high resistance to abrasion, fire, scratching and stain.
For

an

Think of it for your

of fresh product appearance

Now enamel-coated and

vinyl-laminated metals take their place

alongside the fine cold rolled sheet steels and zinc-coated steels
with which National has long served the appliance industry and
others

through its six major divisions: Weirton Steel Company,

Great

Lakes

Steel Corporation,

Hanna Furnace

Slran-Steel Corporation, The

Corporation, National Steel Products Company

and, of course, Enamelstrip Corporation.

will

ahead

years

custom-tailored to fit any designer's

imagination, are on tap at National

other financial centers.

In

Fresh colors and textures,

NATIONAL

STEEL

CORPORATION, GRANT BUILDING, PITTSBURGH, PA.

'

-

19

The Commercial and
20

Financial Chronicle

..

Thursday, April 30, 1959

.

(2000)

higher rates of increase

with

Expand Our

How Can We

hold

will

in meeting increasing

own

our

growth possibilities.
E. C. M. and European con¬

attractive dividends and enormous

factors to

He attributes favorable

vertible

give much needed relief to inter¬

arising from foreign
preciation.

in the United
increased by 20%, but in

States

the United

Kingdom the increase

34%, 39% in Germany, 48%
in France, 27% in Italy, 21% in
was

from price drop in export

recommendations not involving
be of more assistance to this area.

goods. Mr. Grace offers certain

Belgium, 54% in the

gifts—as to how we can

and

of

not,

do

in Japan.

24%

course,

Netherlands
While wages

represent all

decline in our export form of economic and financial costs in manufacturing they are
is a serious prob¬ problems arising from a declin¬ the major cost element for many
tendency in the prices of industries and as wage costs rise
lem which we lace with mutual ing
concern.
So too are the many their major export commodities. so, too, do other costs.
During the past several years, for
other issues
example, the prices of some of Looks Ahead of Next Four Years
that
were
the metals which Peru, Mexico,
created along
vThese .studies suggest that the
Chile and Bolivia export in large
with it: dras¬
cost and price advantages which
quantities have declined by 30 to U. S. competitors have had since
tic currency
40%.
Fortunately -of late there 1949 are tending, to even out in
devaluations
The sharp

trade last year

tin.

foreign

markets, de¬
creased world
for

prices
ma¬

raw

terials

Grace

Peter

J.

caus¬

ing a substan¬
tial drop

in earnings for

the pro¬

ducing countries and many other
difficulties. The recent recession

produced

has

shock

a

wave

compounded our
own domestic problems and con¬
tinues to beset us with real prob¬
lems.
There are indications that
as our economy improves, the na¬
tions abroad that have reacted to
our own recession will follow us
that has

abroad

along in our recovery.

which derives

75%

of its foreign

coffee,

exchange earnings from
were especially hard hit.

on

experienced the most drastic cur¬

commercial

exports

Will they mean that our

markets.

exports will drop further and do

inflation

and

questions
particularly
might affect markets

Almost three-fifths of

export

major

mate¬

States

were

decline

rials such

als,

as

our

industrial

in

was

steel and other met¬

petroleum,

coal

and

cotton.

These exports last year were 30%
below the 1957 figure and 17%
under the total for 1956. Exports
of finished manufactures dropped

10% last year from the 1957 level.
In

Latin

America, the area in
Company is primarily
interested, our exports last year
dropped 13% from the 1957 level
—from $4.6 billion in 1957 to $4

which

our

billion last year.

pect

of

tion—
every

with

day in

would like

as¬

foreign trade situa¬

our

one

It is to this

our

which

we

deal

company—that I

to

emphasize because
of the importance of this market.
The

have

Latin

American

suffered

a

countries

setback

in

the

•From an address by Mr. Grace before
the Maryland World Trade Seminar, Uni¬
versity of Maryland, April 8, 1959.




rising

wages? We in W. Pi. Grace & Co.
equally concerned about these

are

drastically cur¬
by the recession. Nonmilitary exports from the United
States last year dropped to $16.3
billion compared to the peak 1957
level of $19.5 billion, a decrease
of 16%.
At the same time, our
imports which totaled $12.8 bil¬
lion were just about equal to our
record 1957 level of $13 billion.
year

tailed

market

common

countries

move

devaluation of recent his¬ toward lower tariffs and import
tory.
During 1958 the Brazilian restrictions, their trade will tend
cruzeiro in relation to the dollar to be directed more and more to
devalued by 56%, the Argentine inter-common market trade and
to trade with Africa. Additionally
peso by 80.5%, the Peruvian sol
31% and the Chilean peso 44%. with
European
currencies now
These developments have brought convertible there would no longer
about increased inflationary pres¬
be pressure on the Latin Ameri¬
sures
in these countries, severe can countries to spend their earn¬
budgetary problems and a slack¬ ings in European currencies in
ening off of imports from the Europe as before even though
United
States.
It has also cre¬ they would have preferred to buy
ated the greatest single deterrent in the United States.
rency

through

Exports

last

permit American companies
having foreign subsidiaries to de¬
income

taxable

from

duct

losses

currency

de¬

Summary
In summary, we

give

the

could aridshould
tools to our
officials and partic¬

necessary

government

nations are not seeking ularly to American private enter¬
Only two of the twenty prise which in the final analysis

proud

gifts.

Latin American

countries receive

grant aid from
States —■ Bolivia and

any

will have to do the biggest part of

the United the job. Furthermore, I believe
Haiti.
We that industrial research may very

could, for instance, Tepder gfe.ater

well

assistance to them in the prepara¬

foreign

the

turn

trick

for

and

markets

us

in

American

of long-range economic de¬ scientists are the ones <vho may
velopment project^/ 'Wb can and provide us with that extra edge
undoubtedly will increase our gov¬ we need to compete -and stay
ernment loans for specific projects ahgacL Jn the years to come T feel
whether they be fpr hew indus¬ sure we nyill be exporting new
tries, road building,, ,transporta- 5•arid"improved products and ad¬
tion, agriculture or i i'n a n c i n g vanced technology and Jknowhow
tion

,

'■■■>•

.

they signify that we are pricing
ourselves
out
of
the
market

Effect of Our Recession

own

These

tax laws should

our

also

can look to the future with
present conditions, could reason¬ encouragement could bp given to'
ably anticipate having their share private enterprise, .to ^.inyest in confidence and no greater reward
can
come
to the United States
'
of the market in this area remain Latin America.
The
Development, I^bari Fund than through economic coopera¬
approximately at present levels
during the same period.
These
during the next four years and could be employed more, effec¬ tion with Latin America. We in
developments have, of course, re¬
with the volume of the market tively to stimulate private invest¬ W. R. Grace & Co. are completely
sulted in a serious loss of doilar
ment in Latin America by mak¬ convinced of this through more
income—dollars which these coun¬ increasing appreciably each year.
than a century of fruitful busi¬
On a longer range basis there ing greater use of dollar and local
tries use to buy from us.
And as
ness in these countries.
We have
currency loans without the restric¬
a
consequence, a number of the are sound economic reasons for
tions that have prevailed up to gone through good times and bad
Latin
American countries
have believing that as the European
..

countries, such as the
coffee-producing nations of
Latin America, are suffering from
to
new
investments
in
Latin
overproduction, and they are now America.
taking energetic steps to resolve
Businessmen interested in for¬
the serious financial difficulties
eign trade are also concerned
that affect their purchases from
with the formation of the Euro¬
the United States.
For instance,
pean
Common Market and in¬
U. S. purchases of coffee last year
creasing
competition in world
maintained a high physical vol¬
markets
from
European
and
ume
but dropped 15% in value
Japanese suppliers.
to $1.2 billion, the lowest dollar
Our Share of Export Market
figure since 1950. Two prime cus¬
tomers of U. S. exporters, Brazil,
The main
question uppermost
which depends
upon
coffee for in our minds is what effect these
60% of its exports, and Colombia,
will have on our share of world
But some

14

Our

date.:

efforts

Additionally

price of coffee, a problem
I
have
previously referred to,
dropped by more than one-thircl

competition

market

to

made

the

Latin

and encourage

The

Japanese
for

have

we

exceeds

in

investors

needed
American iniports.
Our and we \yill be training more
some recovery in these
-for fthe Latin
iKe Latin American market, and. Point Four program coy Id be in-J .ypnhg->scienU
principally in copper and
that ' American exporters, under creased substantially hnd greater American countries.

markets

heightened
European and

far

America

ahead

task

national

them to extend their investments.

been

has

abroad,

the

Yet

manufacturing

factor

developments; and an unfavorable

currency

the financial difficulty stemming

to

tax

its
accomplishments
toward
surpassed by the main U. S. com¬
petitors. For example during the strengthening Latin. American
economies and helping them to
six years from 1953 to 1958 the
index of average hourly wages in diversify.

Mr. Grace says we
competition from

Europe and Japan in Latin American export market, and is con¬
vinced this area is a good investment on a long term basis
with

investments.... Our

foreign

gram was actually initiated and:
States. To a very great extent in¬
in productivity are re¬ proven out in Latin America.' It
has
done
a
remarkable job of
flected in increased wages rather
than in lower prices.
Indices of helping to raise living standards
the increase in wages show that and in turn creating markets. The
such increases in the United States record of American private enter¬
for the 1953-1958 period have been prise is also a matter of pride in
creases

Co., New York City

American economics,

Well versed in Latin

f

GRACE*

By J. PETER

Bank and the International Mone¬

are

capable of
competition

Markets In Latin
President, W. R. Grace &

in

laws should be amended along .the
not necessarily tary Fund, although created only,
lines of the Boggs bill mow pend¬
strengthening their since the war, have also been very *
effective. Our technical aid pro¬ ing in Congress. This bill would
with the United

productivity

stitute for aggressive

studies

show

indicate
lose

I

are

cer¬

which

are

not

about

of

the

Latin

some

state¬

that
our

we

share

American market
ments

sub¬

no

selling, our

there

that

in the picture

tain factors
to

in

While there is

America.

they
Latin

as

have

as

read

suggest.
The
competitors of the United
in

this

market

are

the

United

Kingdom,
Ger m a n y,
France, Italy, Belgium, the Neth¬
erlands and Japan.
Indices of the
cost of living in the United States
and

in

since

these countries show that

1953, the U. S. cost of liv¬

ing has increased less than in the
Kingdom, Italy and the

A

now.

greater share,, of the local
being
generated

are

broad

these

that

sure

on a

nations and we
long-term basis
a good invest¬

are

through

the sale abroad of our
agricultural .commodities
be
made
to
available
American private enterprise for

Latin

surplus

ment, the dividends are attractive
and the growth
possibilities are

should

Continued

America

is

/:-r'

enormous.

from page 3

The Boll Muket Today

only comes when earnings start to
horizons decline, and this affects all stocks
= . "
Opening up for American trade regardless of their ratios.
and business.
We have just ex¬
The Yield Question
>
perienced a recession which is
reverberating with many after¬
A .great
to-do is being made
effects on our international com¬
today about stock" yields being
There

times with

currencies

new

But by the end of this less than bond yields. There were
the United States should times in the past WheVi jhis was a
have regained the ground lost last useful danger signal to stock buy¬
year and resumed its long-range ers. This time, I am more inclined
to think that it is a useful signal
growth pattern.
It is "all in the
Yet serious problems in Latin to bondholders.
merce.

year

America remain that will require- way you look at
our
constant attention and sym¬ think it means
while

it.
I "happen to
right ;;now that

all living dangerous¬

young

and starting out you ought
a
chance.
I think you

take

to

ought to try to find out -whether
you

cut out to be a money¬

are

maker

or

If all

not.

the people

had a little money never
risked any, of course they could
never
have changed their status.
who only

Thus, the poor would stay poor,
the rich would get richer —
tax collector permitting.

and
the

I think there are a great
people still in this country
who should invest and who could
afford to invest in the securities
markets and who have yet to' be¬
So,

many

pathetic cooperation. We have a
gin.
I think as time goes on we
great stake in these dynamic ly and investing dangerously, it are
going to have more and more
countries not only as increasingly is safer to have an equity than a
stockholders and we are -going to
important trading partners but fixed obligation.
have more and more volume.
The price of stocks might be
also as attractive sources of capi¬
The stock market is no different
tal
investment.
American busi¬ one thing if when you sold your
from anything else.
There is no
shares
nessmen now have nearly $9 bil¬
you
received
something
reason to be
afraid of expanding
than
a
different type of
lion invested
in Latin America, other
activity and more than expanding
more
than in any other area of paper. You cannot step out of the
population or expanding produc¬
the world.
These countries have stock market and put your savings
tion. There is a reason, of course,
a
"Sputnik" free from risk
set the pace throughout the world on
from a timing point of view to
in economic growth, producing an and loss of value. Instead, you get
avoid getting into something just
average
annual growth rate of money and often if you have a before
it
experiences growing
4.5%
in gross national product profit you only get part of your
pains. The last man to build new
And the moment that
during the period 1950-1957. They money.
productive facilities may find his
lead too in population growth with money is in your hands it starts
industry
temporarily
overbuilt.
to change in value for the better
a record rate of 2.5%. Today Latin
The last man to jump into a bull
America
has
approximately 185 or for the worse. "
market may likewise -find it is
So whether you have stocks or
million people and at its present
temporarily overdone.
rate of increase it would have al¬ whether you have cash, you are
I have
no
fear regarding the
most 600 million people by the running a risk and thereby specu¬
ultimate level of the stock market.
turn of the century. And when you lating.
Your aim should be to specu¬
However, the stock market has
consider that the United
States
and Canada together would have late as intelligently and profitably been growing more and more into,
as you can.
a market of stocks.
The averages'
an
estimated 312 million people,
we are

,

United

bull market but the
may mark time
same
rate as in
So much for warnings.
or go down or perhaps fortunate¬
America in terms of markets and
gium and Japan.
Now, what to do about them.
ly far outrun the averages.
Thus,
investment opportunities.
I agree that, to begin with, in selection
In productivity the United States
is of primary import¬
Recommends We Offer More Help the practical manner of living to¬ ance.
has lagged behind its competitors.
During the period
1953-57 the
The tremendous interest we day, people just have to have a
Ideally of course one might say
Netherlands,

and

at about the
Germany, Bel¬

you

can

cance

of

understand
the

the signifi¬
of Latin

What Policy Now?

growth

may

indicate

shares

you

a

own

_

United States had

productivity
countries

a

lower rate of

increase

studied

than

other

except the
and Belgium.

have
an

in

Latin

equal effort

for

cash

part to as¬

fore

America
on our

calls

sist these countries to resolve their

reserve

for emergencies be¬

they think about investing.

My interest begins

have a surplus above these emer¬
problems. The Ex¬
This advantage, however, is offset
and are deciding
port-Import Bank has established gency needs
by the rate of wage increases. In¬ a 25-year record of financial co¬ what to do with it.
dices of average hourly wages in operation with Latin America that
Now, obviously, a lot depends
manufacturing for the period has brought immeasurable credit oil age
and
personal
circum¬
1949-1958 suggest that countries to the United States. The World stances.
I believe when you are
United

Kingdom

development

and

selection

when they really
1932,

asking

timing,

too

but

this is

much.

Since

the investor who has been

continuously

changing
stocks

outlook

fully invested

in

a

of the right
fared the best. The

portfolio

has

has

not changed.

Or,

I

Volume i80

Number 5842

.

The Commercial and Financial Chronicle

.

.

might say, the fundamentals have
not changed.

a

mouthful.

talk

right

stocks

we

in

are

rather

stock

a

today

still

anced

affects the other. It is only human
a stock that seems

cheap

by

measuring

stock

that

it

against
to

seems

be

priced about right.
If the latter
proves to- be overpriced, then of
the

course

former

will

be

I think

mar¬

stock

one

of

nature to select

another

to

be

will
with

to

who

have

stick

to

fundamentals

over¬

priced also,
•
••"
So, to get down to the brass
tacks pf what to do today, I think
it is obvious that there is, to be¬
gin with, some uninformed par¬
ticipation in the market.
Now

ted

tive

a

Chicago Analysts
CHICAGO,
Drake,

be

to the

but

"nonetheless

—

to Hear
William

of

Corporation,

speaker

at

the

P.

Pennsalt

will

be

luncheon

bal¬ meeting of the Investment Ana¬
lysts Society of Chicago to be held

of

specula¬
promising

585

Boylston

the

New

Mr.

Goulston

abandon

reason,

are

staff

Company,

Street, members of

York

(Special to The Financial Chronicle)

LOS

turned

audience "has

after the

ANGELES, Calif.—Hubert

W. Ohrtman is now with

Walter &

out, after the

Spring

only

Pacific

home,

gone

Bingham,

Hurry, Inc., 621 South

Street,* members
Coast

Stock

of

Exchange

the

Maynard

(Special to The Financial

Chronicle)*

W.
of
Maynard & Co., Smith

FREEPORT, 111.— Harold
has joined the staff

Widmer

Myrl D.
Building.

Stock

was

Exchange.
formerly with

Sullivan

With Bosworth,

with Bache & Co.

(Special to The Financial

Chronicle)

DENVER, Colo.—Philip E.
man

Neary, Purcell Adds

With Bingham, Walter

an¬

In the final analysis,

after the- show is over,

lights

the

LOS

Hill-

connected with Bos¬

660 Seventeenth

has

become

Inc.,

Street.

asso¬

Two With Columbine

ciated with Neary, Purcell & Co.,

210 West Seventh Street, members
of

now

ANGELES, Calif. —Anna-

Pritchard

Still

is

worth, Sullivan & Company,

(Special to The Financial Chronicle)

alysis and logic in evaluating in¬
vestments.

to

Keller & Co. and in the past was

Hotel.

conclusion, except for purely
in and out trading, I
not

Leo I. Goul-

—

added

today (April 30th) at the Midland

transient
would

ben

Leavitt, Spooner &

situations.
In

has

y

commit¬

amount

unusually

to. some
.

carefully

111.

President

Chemicals
guest

With Myrl D.

(Special to The Financial Chronicle)

BOSTON, Mass.

position in the market

should
as

With Leavitt Spooner

anything .to take home

them.

ston

chip promise.

market

a

than

the price of

ket,

want

readily marketable blue chips or
in those issues which show blue

A Market of Stocks

stocks

I

those

trading
able

continuous

big

difficult* the months ahead but found in the

and

enough to accomplish.

While

with

markets.,

It is easy enough to' change my mind quickly.
I think
a
changing portfolio there will be plenty of profit in

about

the

of

today to be in active liquid lead¬
ers

However, of course, I have said

21

(2001)

Pacific

the

Coast. Stock

Ex¬

(Special to The Financial Chronicle)

DENVER, Colo.—Evelyn R. Lee
and Glenn C. Wilkin are now af¬

change.' J3he* was' formerly with

filiated with Columbine

Wagenseller & Durst Inc.

Corp., 621 Seventeenth Street.

Securities

somewhere this reservoir of buy¬

ing power is going to be pumped
dry and then the market will stop.
And somewhere these buyers

1958 ANNUAL REPORT

are

going to be disillusioned and then
the market is going to go down.
could be soon but my guess is

(indiana)

AND SUBSIDIARIES

:

STANDARD OIL COMPANY

COSTS CUT

-It

it

that
.1

is

still

some

months

it' will

think

come

more

off.

in

an

atmosphere of confidence than in
the current

atmosphere of

care.

-.

The Risk Areas

Next,

as to the areas where the
risk exists, it is inevitably

most
in

the

so-called

relatively

and

amateur

that
he

the

sees

to

here

the

and

between

the

professional

amateur

believes

hears

or

priced

and obscure shares.

new

difference

The

low

what

inclined

is

and

is

buy and hold.

The professional
going along with
but he is more skeptical

is not adverse to
move

a

is

and

inclined

more

to

buy

and

sell.
There may be some risks in the

blue chips with the
price earnings ratios,

super

high

super

but I
would rather pay too much for
something that is good than for
something that is not.
;
! •
The

last

time

I

spoke

MANUFACTURING. Emphasis continues to be placed

quality improvement. We are well on the way to
achieving our objective of reducing operating costs
while continuing to improve the quality of our products.
For example, scheduled for completion in May, 1959,
is a 140,000-barrel-per-day crude distillation unit
which will replace nine smaller, obsolete units at an
important cost saving in operation. Our new petro¬
chemical plant at Joliet, Illinois, was essentially com¬
pleted in 1958.
on

MARKETING. The company achieved excellent results
through reseller channels, particularly in the sales of
premium gasolines. Sales through service stations and
other retail outlets increased about 5 %, exceeding the

industry pattern. For the year, our total volume of
product sales declined 2.5 %, largely the result of low¬
ered industrial demand for residual fuels and the

dropping of marginal commercial accounts.

before
A

number

of promising

fields

the Harvard Business School Club,

PRODUCTION.

opened in this country and Canada by Pan American
Petroleum Corporation. Among these were the Swan
Hills area of Alberta, Canada. Net domestic produc¬
tion of crude oil and natural gas liquids declined 6.7 %
in 1958, due largely to restrictions on production by
state agencies. Net natural gas production increased
sligiitly—to 1.35 billion cubic feet daily. Our crude
oil, natural gas liquids and natural gas reserve posi¬
tion showed continued growth.

and

small speculative situations rather
than industrial giants.
I

feel

inclined

Right

now,

reverse

to

this

advice and stick to blue chips and

promising issues that could be the
blue chips of tomorrow.
Fifty

well

comprise
roster

established

the

''Favorite

there

and

movement among

since

stance,

stocks

Fifty"
always
a

is

them.

1958

For

Amerada

in¬
has

dropped form first to fifteenth. In
the
same
period,
International
Business Machines has risen from

twenty-seeond to first.
the

up or

bottom of the list moving
not yet in the list but soon

be there.

to

In short, I don't es¬

pecially want to own the super
blue chips with the highest price
earnings ratios on the stock ex¬
change and I certainly don't want
to

Emphasis

on

many of the wonder issues
everything in the future and
nothing in the past or the present.
own

were

foreign oil exploration

substantially with the
Pan American Inter¬
national Oil Company. International's overseas activ¬
ities now encompass seven countries on four continents.
A second new subsidiary—Amoco Trading Corpora¬
and development was increased
formation of a new subsidiary,

tion—was formed in 1958 to handle

I would like to fry to find stocks

at

INTERNATIONAL.

oil marketing

activities.

Total income.
Net

international crude

,

1957

1958

FINANCIAL:

earnings..................

$1,882,441,000
$ 117,775,000

2,029,689,000
151,509,000

3.29
53,197,000
1.687
64,578,000
270,387,000

4.27
56,302,000
2.110
95,207,000
340,274,000

Net earnings per average

outstanding share.
Dividends paid*
Dividends paid per share*
Earnings retained in the business
Capital expenditures

$
$

Total assets..

$2,769,317,000
$2,076,853,000

.7

Net worth

Book value per

..

share

$
$
$

58.06

$

2,535,023,000
2,012,260,000

56.26

7

PRODUCTION:

Crude oil and natural gas liquids,
barrels per day, net. .........

285,474

307,500

1,347,590

1,298,158

10,872
2,193

10,722
2,085

Natural gas, thousand cubic feet

*

day, net...............,.
Oil wells owned, net (year end)..
Gas wells owned, net (year end).
per

I think I said to look for

new

FIGURES^fTfV

STORY IN

THE

MANUFACTURING:

v

Crude oil and natural gas liquids,

640,648

648,076

691,800

714,000

645,74.5

etc.,processed, barrels per day.
running capacity barrels 1
day (year end)

662,676

Crude
per

MARKETING:

Refined products sold,
per

barrels

day

29,032

29,874

1,422,498
277,183

1,391,315

281
17,568

175
17,366

152,796

156,451

93,710

86,125

151,937

148,375

46,033
352,469,000

49,678
370,128,000

Retail outlets served

Natural gas sold, thousand
cubic feet per day

Crude oil sold, barrels per day.

..

341,59-1

TRANSPORTATION:

Pipelines built, miles
Pipelines owned, miles (year end)
Pipeline traffic, million barrel
miles

Tanker and barge traffic,
million barrel inilcs
PEOPLE:

responsible for several important
improvements during 1958, Our research scientists
engaged in a wide range of petrochemical studies. We
have developed a strong patent position in methods of
producing thermoplastics and organic intermediates.
We also have developed a new drilling technique, based
on a modification of an air-driven quarry type drill.
RESEARCH

was

Stockholders (year end)

Employees (year end)
Wages and benefits

$

^"Dividends paid" include the value on this Company's boohs of the Standard
Oil Company (New Jersey) stock distributed as a dividend. "Dividends paid
per

share" include the market value of the Jersey stock on date of dis tribu t iotL

with

Thus, I

talking today more of
type of issue rather than actual
am

f

issue.'

4

: " "

,

To

summarize, I feel it is im¬
portant regardless of the risks to
make hay while the sun shines,
and the sun is certainly shining
On the other hand, I think you
must

protect yourself against the

rainy day ahead.
of when

much

the

We know about
it is coming as

weatherman.

vestment

think

I

climate

change, and the

are

snatch
from

neglected

the

in¬
can

groups which are

popular now can
popularity.
Likewise,
which

the

today

very

Company sold $200 million principal amount of 4^%
Debentures, due October 1, 1983. At year end total
borrowings amounted to $467.5 million, equal to 17 %
of total assets.

mantle

lose their

moving

later

Parent

desirability

one

of

the

ways

in

STANDARD

OIL COMPANY

so

1958 Annual

fast today

which

SOUTH MICHIGAN AVENUE,

Please send

investments




me

a

copy

Wholly Owned Subsidiaries
6,

(UTOCO,

Company,

KE

and subsidiaries

Report.

I

Oil COMPANY

major subsidiaries (wholly owned): Pan American Petroleum Cor¬

poration • Service Pipe Line Company • Indiana Oil Purchasing Company
•

STREET.
CITY.

THE AMERICAN

REFINING COMPANY

(Indiana)

(Indiana)
Other

NAME.

|

UTAH OIL

OIL COMPANY

CHICAGO 80, ILLINOIS

of the Standard Oil Company

I

I

you

protect yourself.
want most of my

AND

STANDARD

that you can own less of them and
still make a good profit.
That is
can

REFINING

MARKETING COMPANIES

OF

(INDIANA),

910

are

Map shows

MARKETING AREAS
STANDARD OIL

today's favorites.

Stocks

In line with

groups

now can

of

our policy of paying divi¬
approximately one-half of our earnings,
regular cash dividends were supplemented in the fourth
quarter with a special dividend in Standard Oil Com¬
pany (New Jersey) stock. Dividends paid, including
the value of the Standard Oil Company (New Jersey )
stock on date of distribution, amounted to $1,687 per
share. We have paid dividends for 65 consecutive years.

DIVIDENDS.

dends equal to

Protecting Yourself

I

worth at the end

$2,076,900,000—the highest in Com¬
pany history. Book value per share increased to $58.06
in 1958 from $56.26 in 1957. During the year, the

this market.

on

as

NET WORTH AND FINANCING. Net

of 1958 stood at

Tuloma

Gas

Product*

Company •

Pan American International Oil

Company • Amoco Trading Corporation • Amoco Chemicals Corporation
.STATE.
-AS

t

22

The Commercial and Financial Chronicle

(2002)

Orie

The

Marginal Income Approach
To Long-Range Profit Planning
Consultants,

eral

Ohio

Cleveland,

Inc.,

Kelly, of G. H. Walker
has been appointed Gen¬

Co.,

Chairman; of

Division

1

longer can afford to
conventional approaches and must provide

Fellow accountants
frozen in

remain

advised they

are

no

•

NEW

C h

;

-

the

i t i

a r

.

of Ne^York, it was announced
e

of

been

those within the business commu¬

who can
pe»r,plex ed,
perhaps none
is
so
important

afford

ill

nity

be

to

ing products on a variable cost
basis, marketing executives, for
example, can create and extend

the

as

accountant.

Yet,
the
representa¬
tives

opportunities

for added income.
Study of profit-volume relation¬
ships can provide a blueprint for
expanding markets geographically.
It
can
provide more
accurate
selective
goals for a company's
sales, advertising*" and promotion
efforts. In addition, it may indi¬

the

of

ti ng

accoun

profession,

are

clearly <;bewitched,
bothered

and

to

the

of

facts

They

Trundle, Jr.

marginal

indeed generate possibilities

income

fession. Accountants cannot afford

remain

to

decisions.

These

plant acquisitions,

frozen

in

conventional

effective alternative

conventional

accounting
approaches being used? I believe
that

it

in

lies

an

approach which is in keephig with
the principles of
long-range profit
planning. The approach I propose

for consideration is the
Income concept.
In

has

been

profit

called

language"

the

"common

because

it

per¬

mits executives
representing vari¬
ous

management

company to weigh
of action within a
of reference.

functions
a

given

common

defines Proposed
In

of

a

course

frame

The frame of refer¬

ence, is, of course, the
the action on profit.

effect of

costs, and the establishment
profit/'volume relationships.

of

,

difference

itself,

between

all

is

the

variable

costs

(materials,
direct
labor,
commissions, freight) and the sales
dollar.

and

sau

Suffolk

organized
Bank

Usually it is expressed
percentage—
MI

Percent equals $MI

one

company, for example,
management spends 68 cents

the

at

holding
mon

in

the

discussions

open

area

on

on

every dollar of sales for vari¬
able expenses. This leaves 32 cents
to 1> >y fixed expense and

a

by

com¬

problems.

gives
profit until the
break-even
poll:.:: is reached.
It
takes
the

for

j

'"-even
1

xed

sales

expense.

BSlrq cf the

volume

to

'Ltcci

a

/.re aviation

of

by Mr. Trundle before
Chapter of the National

Accountants,

Cincinnati,




professional lines, with mem¬
bers soliciting special gifts from

individuals in their

N.

of the New York Stock

Cardinal's

accepted

vision

^Committee

has

raised

be

parishes

house

canvass

The

on

June 11, 7:00 p.m.

The panel discussions

officers

in

to
Nassau-Suffolk
are

open

increase

an

New

New
a house-to-

almost

of

4%

H.

George

Guilfoyle,

of

Director

Charities,

New

states,

"by

calculation of need and

years

lights
being

Pa.

Phila, Inv. Assn.
To Hold

PHILADELPHIA,
ment

Edmund

week

Association

and

Pa.—Invest¬

of

Philadelphia
Spring
Outing
at
Whitford
Country
Club, Whitford, Pa., June 26.

will hold its Third Annual

lier

(Special to The Financial Chronicle)

Glueck

is

now

—

Albert

affiliated

»

S.

with

L.*

;

J

was

Avenue

Third

at

and

Clifton

*

W.

*

,

;

■

of

of

Keith

President in

S.

McHugh

as

who

is

Mr.
ager

Resident Vice-

charge of branches in

India.

Phila¬

Matthews

First

has

been

Man¬

National

City

Bank

American

The

laya.

Warwick
p.m.

the

from

3:00

p.m.

branch

to

of

Now With E. F. Hutton

con-

F. Hutton & Com¬

the

1

to

establish

Federation

of

a

Ma¬

Federation,

where

it

,

branch

a

in

Walter

full

range

27

countries.

K,

LeCourt,

Jr.,

for¬

111 West 10th Street.1 He" merly an officer with the bank's
was
formerly
with
Prescott, Singapore
Branch,
will
be
in
Wright, Snider Company.
charge of the ngw office.
pany,

new

total

S',®

.<

*

formerly

of

Ilarriman

&

Graham,

David

Brothers

Brown

Boston, was elected
Assistant Cashier of the
of

Company
an

National Bank,

Worcester County

Worcester, Mass. Mr. Graham will

duties

his

assume

officer

as

in

in the
the second week

charge of commercial loans

Fitchburg

D.

area

May.
also announced that Arvo

was

Peltonen

his present
loan
of

will

be moved from

position as commercial

charge
develop¬
activities for the Fitchburg

officer

in

officer

to

bank's

the

ment

business

the

with

as

First

The

since

of

stock

Bank

National

with

common

and

$1,000,000;

National

Bank,

of $300,-

consolidated, effective as

close of business April 10.

consolidation

National

Company

effected

was

under the charter and

First

Bethle¬

Bethlehem,

Pa., with common stock
of the

and

of 3 Bethlehem,

Pa.,

Bethlehem,

County
1941 when

messenger.

Company

Trust

associ¬

been

<

Worcester

Bank

National
he started

hem

has

Peltonen

Mr.

ated

Bank

title of The

Trust

and

with

of Bethlehem,

capital stock of $1,512,500, divided
into
151,250 shares of common
stock of the par value of $10 each.

will

of commer¬
cial banking services.
It is First
National
City's
78th
overseas

KANSAS CITY, Mo.—Harold E.

become

the

provide

(Special to The Financial Chronicle)

has

bank

The
bank
opened
a
branch
April 27 in Kuala Lumpur, capital

preceding the Dinner.

Jr.

in

completion of the sale of
stock, he estimated that
capital funds, including re¬
serves
of the Long Island Trust

Upon
the

The

branch.

of New York has become the first

for

capital stock from $2,105,$2,456,530 and boost surplus
$2,617,040
to
$3,669,830.

000 have

-

of the Bombay

The

bank's

600 to

ac¬

The

Insur¬

dent, explained that the effect of
action will be; to raise the

the

area.

time, the bank

same

De C. Matthews

the Life

by proxy and
voted unani¬
mously in favor of the proposals.
Frederick Hainfeld, Jr., Presi¬

v.:

Phalen,

cepted the resignation as a direc¬
tor

•

It

President¬
elect of the New York Telephone
Company, was appointed a direc¬
tor
of
The First National
City
Bank of New York on April 28.
At the

176,-

present in person

718 shares were
or

of

Street.

Workshop
Program, which will take place at

Dinner

nected with E.

ham & Co.

the

the

fice Square, members of the New
He

Ear¬
new

it

week

C-*

-

Vice-Chairman of the

Saunders,

Exchanges.
formerly with Harris, Up-

a

relocated

this

72nd

Zalinski,.Executive

Proctor, Cook & Co., 10 Post Of¬
York and Boston Stock

within

Avenue

by First National City.

quarters

a

Proctor, Cook

BOSTON, Mass.

Third

delphia Invest-in-America Com¬
mittee, will act as Coordinator at

5:00

Joins

including six
Manager of the Gramyears

former Lenox Hill Branch in

Company of North America,

ance

F.

Monday's opening was the sec¬
on

share

with the

Day

-

Vice-President

Outing

been

Park branch.

ond

Day

—

36

Howard

be

has

the basis of
for each six held after

Company, will exceed $7,900,000.

g

will

leaving his post as President of
Dinner, the New York Telephone Com¬
will be one of the high¬
pany May 1 to become State Com¬
of Invest-in-America Week, missioner of Commerce.
observed this year from
The First National City Bank
26 to May 2, will be held of New York on
April 29 an¬
30, 1959 at 6:30 p.m. at nounced the
appointment of Frank
Investors

Warwick.

The

as

ercy

in

Women's
which

for

prudent

been

of* the Di¬

$20

at

shares

the stock split.
Stockholders representing

from

Street,

bank

our

has

.group

York

Manager

welfare agencies,

Charities

Di¬

Overseas

■:.•

Anderson who

ability
to meet that need. In the past four
decades of public service in our
community, through its 192 affili¬
Catholic

the

additional

70,186

of record April 22, on

York,

mepaber; of the senior

a

46th

and

over

Catholic

a

New

May 1, 1959

.

21, 19591, stockholders
of Long Island Trust Company,
Garden City, N. Y*, voted an in¬
crease in capital stock of the bank
through a two-for-one stock split.
They also voted to approve the
authorization, issuance and sale 6f
On April

one

phone Building at Third Avenue

is

Executive

York

on

,

each to be offered to stockholders

P.

opened a branch on
April 27 in the new General Tele¬

that of last year, prompted, Msgr.

April
April

County commercial banks.

J.

The First National City Bank of

the
York

by

1959 appeal

as

with

vision."^

April 19 to 29.

goal of the

of

Bank

administrative

quota tff $1,200,000 of
the overall goal of $3,105,267. The

PHILADELPHIA,

meetirig will be held

Cragin,
and John M.
.were
Senior

Vice-President, and will be

a

associated

>

a

will

join the bank

as

Exchange,

Executive Chairman.

as

Reserve

will

John A. Coleman, a Governor-

and

Valley,

Y.

The next

W.

York

eral

and Co., as Chairman,

Altman

B.

Women Investors

Locust

-

announced that John
Exter, Vice-President of the Fed¬

Committee has John S. Burke, of

-

1955.
^

The First National City Bank of

Invest-in-America

Bank,

in

Trust,
Vice-

Senior

v

New

field. The

own

need
to
hundreds of
- are:
President, F.
Papsdorf,
Long
Island thousands of men, women and
Company,
Garden
City, children, of all races and creeds."
N. Y.; Vice-President, Joseph P.
Enright, Valley Stream National
Bank;
Treasurer,
Walter: F.
Thomas, Eastern National Bank;
and
Secretary, Florence Oates,

pay

company

talk

Cincinnati

Guaranty

bank.
Patterson,
.joined
Morgan & Co. in 1935.
Mr.

Trust

When over-all

exceed the
brcrjx-even volume, the
company
li£0 62 cents left of
every sales
tfco

Vice-

Hinton

divi¬
.

administration

head of investment

Verbeck,

in the merged

Warren

Matinecock

six
the

and

friend

.year

posi¬

of
of

Executive

formerly

Longstreet

Ed¬

Composed of about 1,000 Catho¬
lic laymen, the Cardinal's Com¬
mittee is organized along business

ated health and

for the

serve

no

bre-

B.

man.

as

$ Sales
In.

Forum

then produce a

profit.
e

banks

the Nassau-Suffolk

commercial banks

all

product are paid.
income must liquidate

expense and

County

Nas¬

-

new
one

F.

L

joined the bank as Econo¬
mist in 1947, was elected'/;VicePresident
In
1948,
and named

Thomas P.

bank.

Guido

and

of the

head

'

.

He

Jr.,,; who
Ghairinan; and Meyer,
Vice-Presidents ' of J. P. Morgan
Crofton, Vice-Chair-1
& 'Co., continue in that capacity

of the
Archdiocese through

meeting Apr. 23,1959 at Stouffers
Restaurant in Garden City.
The
aim of the new organization is to
foster improved operations of all

pocket costs of
fixed

Jcrman

Jr.,

is

Patterson

Vice-Presidents

Wade,

J.

Charles

400

N. Y.—Forty-

Operations

at Stouffers

Marginal

CITY,

officers representing 21

one

.

Committee:

Commodities

ward

remainder

Operations Forum

Or to put it another
way,
it is the amount of the sales dol¬
lar left after the direct out-ofa

* ':■■■

Nassau-Suffolk Bank

coming

Concept-

specific terms, the mar¬
ginal income concept requires a
breakdown of fixed and variable

any

v-"

-V

Officers elected to

more

Marginal income

\

kv

GARDEN

ginal income concept is a manage¬
ment tool of analysis and control.
It

Guaranty.- In his
Mr.

sion.

;

newly merged

r

Murphy, of F. S. Smithers

&

The
.

marginal

the broadest sense, the mar¬

contribution of

given decision, accountants will
greatly strengthen their claims
and aspirations to playing a role
in the management decision-mak¬
ing process.

negotiations and decisions
increase or cut prices.

and

Vice-chairmen.';

Investment Bankers Committee:
Peter J.

approach

price reductions.
things are of great im¬
portance to the accounting pro¬

labor

is

Senior

tion

i

as

administration •

investment
i

Stuart

tential profit

managerial

there

gap

& McKinnon,

continues

Lindow

seph C. Nugent, of Mabon & Co., Company of
Chairman;
Joseph Gimma, of N c w Y o r k
Hornblower & Weeks,, John. ;B. j to form Mor-

Carlisle & Jacqueline,
and Walter T. O'Hara, of Thomson

announces

.

Guar¬

anty Trust

Maher, of

New.

Company,

Trust

the election of
Wesley Lindow to the; office • of
:Vice-President and Secretary. Mr,

elected

decisions,

an

Irving

been

acttons may involve make-or-buy

the

with

Jo¬

Committee:

-

;York*

Committees serving under these
past weekend
General Chairmen include::
Firms

bank's

the

in

adminisffati6h,"'55~ fir6ad

'

this

merged

Member

r

Incor¬

have

approaches. Rather, it seems to me,
that by placing a new emphasis
an
adequately analyzing the po¬

Is there

Go.

porated, which

Presidents.

These

subsequently accused of supplying
misleading information for differ¬

to

Kelly

Devine & Co., Vice-Chairmen.

conceivably could extend
product's appeal to new users.

of

fixed and variable components and
then
bewildered when they are

to

"R.

Orie

Co.

of

may

are

new

Street.

Presidents

The

bewitched by ex¬
penses, Ibothered by the idea of
breaking them down into their

ent

branch

which
C.

R.

corporate

life.

Operations Officer

of

Co., Chairman; Francis Kernan,
Jr., of White, Weld & Co., and
William J. Stoutenburg, of €. J.

cate the need for product redesign

comes

interpret¬

ing

ce

the

bewildered,"
when it

had

Morgan

P.

&

of

Hayes,

1 $ •V
- /">'
Fitzgerald joined the bank
in
1941
and
was
appointed an
Assistant Secretary in 1955.
v '
Mr.
Fitzgerald is a "Regional

Mr.

1951' TV-Vice—

J.

Glore, Forgan
&

the Board.,1

r,

of

sin

Flanigan, Chairman of

President

Edward

and
F.

"

C o.,<

&

<m a n

e

Patterson

Adleiy Cole-

produce profit. The Ml
percent, in this case is 32 percent.
Why should businessmen con¬
sider using such an approach?
For businessmen, the marginal
income technique has numerous
advantages. By carefully analyz¬

d

n

Manufacturers Trust

of

C.

Horace

the board. Mr.

A.

Coleman,

,,

dollar to

The complexity of modern busi¬
ness baffles many people.
But of

a

x

Chairman

are

William

President

by Company, N. Y„ is announced by

vV."W;

/nenry C. AI-

Kelly as :

Chairmcn

The appointment of Robert F.
Fitzgerald as an Assistant Vice-

been

•

Senior Vice-President of

a

Morgan Guaranty Trust Company

e s. -

with

General Vice,

Ellmore C. Patterson has

;

elected

Catholic

Serving
Mr.

Bankers

and

OFFICERS, ETC.

,

CAPITALIZATIONS

ap¬

York

_

BRANCHES

REVISED

Com-,;

peal of New

of corporate facts of life to avoid mis¬
leading information for different managerial decisions. To this
end, Mr. Trundle proposed the "marginal income concept'^
wherein marginal income is kept in focus to ascertain whether
there is sufficient income per sales dollar, to liquidate fixed
expense and produce a profit after ail direct out-of-pocket
costs of a product are paid
better interpretation

'

for
fund

Laity
1959

CONSOLIDATIONS
NEW

Financial

the

Cardinal's

the

of

mittee

the

of

About/Banks

News

Orie R.

By ROBERT C. TRUNDLE, Jr.*
Trundle

Thursday, April 30, 1959

.

.

KeHy lo Head

Div. in Fund Drive
&

.

A.

Robert

Maier,

Assistant

Vice-President of Mellon National
Bank

and

burgh,

Trust

Pa.,

has

Company,

been

Pitts¬

appointed

Manager of the bank's Canonsburg
effective May 1, according
an announcement by Frank R.

Office

to

Denton,
bank.

Vice-Chairman

Mr.

Maier

cf

succeeds

the

Brad-

t

Number 5842

Volume 189

ford

.

The Commercial and Financial Chronicle

.

.

R.

Williams, Assistant Vicethat of¬
fice who is retiring.
Mr. Maier started his banking
President and Manager of

in

career

with

1929
Bank.

National

In

the

1941, he was

to Assistant Cashier at
Gulf Building Branch.
He

joined Mellon Bank in 1947 when
the Forbes National became part
In December of 1947, Mr. Maier

appointed Assistant Manager
of Mellon Bank's Gulf Building
Office and in January 1954, he
became manager of that office. He
was
appointed
Assistant
Vicewas

President of Mellon Bank in 1958.
R.Denton

Frank

also

>

par

First

The

...

an¬

National

common

stock

of

Bank

of

common

Mr. Smith
in

to Mellon Bank

came

He served

1947.

increased from

to
$300,000,
effective
April 15 (number of shares out¬
standing—12,000 shares, par value
$25).:
•
/
■:
V

Bank,

of

McMillen

•

merged, effective as
of business April 15.

The First National Trust & Sav¬

ings

of

$25,600
of the close
The consoli¬

Batik

of

Diego,

San

Calif.

is

offering holders of its out¬
standing capital shares the right
to subscribe for 105,600 additional
shares ($5 par value) at the sub¬
scription price of $26 per share,

was
effected under the
charter of The First National Bank

dation

of Wadesboro and under the title

on

The First National Bank of Anson

the basis of

one

each.

-

;■

>/.'*/'■•

❖

ij!

com¬

Western

Bank

and

Mitchel, Schreiber Partner*

on

On

the

of

Trust

Com¬

May 1st, Peter W. Schreiber;

member

April 15.

of

the

New York

ment.

(Special to The Financial Chronicle)

offices

at 15 Broad Street, New son is now affiliated with
SchirCity, effective May 1st.
mer, Atherton & Co., 50 Congress
Street, members of the New York

York

and Boston Stock

Forms Bernier & j Co.

.

AUBURN, Maine — Rene A.
conducting a securities

Bernier is

.

Street

the

under

firm

name

i

S. Wade Marr Adds
(Special to The Financial Chronicle)

ELIZABETH CITY, N. C.—Le©
now connected with

M. Werner is

of

S. Wade

Bernier & Company.

Marr, Carolina Building.

NEWS

ON TEXACO

PROGRESS-ASPHALT PRODUCTION

,

in the Administrative Office.
in

his

started

Frey

with

1938

banking
Union

The

^

t*

that time he

At

assigned to the

was

Tabulating Division and in 1915
he was placed in charge of the
Trust
Accounting Division.
He
joined Mellon Bank in 1946 at
the time
of the merger of the
two banks. In 1950, Mr. Frey was
appointed Assistant Secretary in
the

in

Stock

Division

Transfer

w

and

1952, Assistant Cashier in the

Methods
At

Division.

the

present time, Mr. Frey
assigned to the Methods Divi¬
sion, in charge of the application
of
electronics
development
for
use in banking.
Roy A. Hunt, Jr., has been ap¬
pointed Assistant Vice-President
in the National Department.
is

Mr.
in

Hunt

1950

as

joined

ing year, he

Credit

utilities

Hunt

Bank

The follow¬

assigned to the

was

bank's

public
Mr.

Mellon

trainee.

a

Department
analyst. In

became

as

a

1952,

commercial

a

representative in the Banking De¬
partment. - He was appointed As¬
sistant Cashier in

1953.

A., Charles E. Scripps
to

the Board

elected

was

Directors of The

of

First National Bank of Cincinnati,

Ohio, at the Board's April meet¬
ing, according to an announce¬
ment made by Reuben B. Hays,
Chairman of the

Mr.

Scripps'

board

vacancy

Board.

election
left

fills

the

by the
recent death of Robert McEvilley,
retired
Vice-President
of
The
open

First National Bank of Cincinnati
and board member from 1916

un¬

til, the time of his death April 9.
;

Stockholders

Trust

&

Ohio

and

of

Savings

Spitzer-Rorick
Bank,

Toledo,

Citizens 'Trust

"Ohio

Company, Toledo, Ohio, at sepa¬
rate
meetings, gave unanimous
approval to plans for merging the
two banks.
Under

.

the

shares
stock

of
for

Rorick

will

Ohio
each

they

-

.

t

*

plan, Spitzer-Rorick

stockholders

receive

Citizens
share

of

hold.

now

three

Muddy roads clutched at the world's wheels,

A YESTERDAY.

common

slowing transportation to a worm's pace. Then at last, man found

Spitzer-

he could make

S-R

now

has 9,000 shares outstanding, Ohio
Citizens .90,000.
Following
the

volatile form of

smooth, hard-surfaced roads from asphalt

a nor^

—

•

petroleum. In the early promotion of asphalt road> ;

building, Texaco took a prominent part.

share exchange, Ohio

Citizens, the
institution, will have

surviving
117,000 shares of $20
stock as its capital.

value

par

It will also have total resources

of

approximately $100,000,000 and
capital and surplus of $5,200,000
with a substantial undivided prof¬
its

account.

As

<4

previously announced,

Texaco^is one of the world's largest manufacturers oir
ribbons of
superhighways, as well as airport landing strips. They are

TODAY.

asphalt products. These products make possible great
smooth
used

for

roofing,

battery

Texaco's leadership
of

Wil-

boxes

and

constantly planning for the future.

director,
and
Marvin H. Rorick, now President
of
Spitzer-Rorick, will become
Chairman
mittee

a

of the

and

a
«

-

Executive

Com¬

director.
«

...CONSTANT

The

First

Champaign,
common

National

111.,

PROGRESS

0

IN
Bank

increased

in

the

capital stock from $300,-




and

OIL'S

many

other useful

items,

and growth in this field result from its

lard I. Webb, Jr., will continue as

President

*
* *

Exchanges. :

George W. Frey has been ap¬
pointed Assistant Vice-President
Mr.

*

(Special to The Financial Chronicle)

t,

career

/

BOSTON, Mass.—Blake S. Jack- 1

in the bank's

Trjist Company of Pittsburgh.

♦

With Schirmer, Atherton

Stock Exchange, and Mildred P.
Arnold, will do business under the
firm name of Porges & Co. from

Investment

Research, Credit and
Industry Divisions and ;in Jjuly
1955,
was
appointed
Assistant
Cashier in the Banking Depart¬

Stock

•

business from offices at 40 Beach

*

The Board of Directors of First

By a stock dividend, the

Chairman

as

Porges, member of the New York

County,
stock

an¬

23

Exchange, will become a partner
in the Exchange member firm of:
i1
New Partnership
Mitchel, Schreiber, Watts & Co.,
20 Broad Street, New York City.
new
partnership of Michel

i

share for each

nine
shares
held
of
record
on
Wadesboro, with capital
of
$112,800,y divided into April 21. A Rights to subscribe will
expire on May 11.
shares of common stock of

Calif.,

election; of Mont E.

Board and President

A

$100,000;

stock

been

Vice-

was

Francisco,

the

nounced

$200;000;

and
Morven, Morven, N. C.,

11.280

Assistant

Fla.,

San

pany,

Fernandina

at

.

the par value of $10

appointed

Beach,

Bank

Wadesboro, Wadesboro, N. C., with

nounced that Robert H. Smith has

President in the National Depart¬
ment of Mellon National Bank.

capital stock of The Florida

National

value $25). vy,

with

y-yVl.'\v'

of Mellon Bank.

shares,

mon

Forbes

promoted
their

to $600,000 by a stock divi¬
dend, effective April 15 (number
of
shares outstanding — 24,000
000

(2003)

FIRST CENTURY

the texas

policy

comf,*-;; ]

'

24

Continued

Chicago Bond Club
To Moid Field Day

Our

Field Day of
The Bond Club of Chicago will be
held at the Knollwood Club, Lake

Reporter

Governments

on

Forest

Fri.,

on

part of the pressure should be taken off
government obligations since the supply
of these issues will not be increased in this undertaking. However,

from

ing General
Committee
been

has

Fabian

Brewer, Wil¬
liam Blair &

to

as

of

the

that will

issues

refunded

be

Treasury Seen Relying on Short-Term Issue

Na-

G' F"b a

w

B,ewer

and George R. Wahl-

quist, Weeden & Co.
Vice-Chairman in Advisory Ca¬

pacity: Robert I. Kelley,
man Ripley & Co., Inc.

Harri-

The General Chairman has ap¬

pointed the following Committee
Chairmen:

Arrangements—John J. Lynch,
Blyth & Co., Inc.

White,
Harris Trust and Savings Bank.
Baseball —Roland

Eugene

C.

Travis,

Entertainment

L.

Gordon

—

Golf—Andrew

Buchan, Ba¬

D.

Whipple & Co.

Investments—Edgar F.

Grimm,

F. S. Moseley & Co.
Luncheon-Dinner

George

K.

(Special to The Financial Chronicle)

LOS ANGELES,

Calif.—George
N. Glass has joined the staff of
William R. Staats & Co., 640 South
Spring Street, members of the
New York and Pacific Coast Stock

Exchanges.

funding operation is forced by circumstances and the prevailing
conditions of the money and capital markets to refund the issues
are

coming due with short-term liquid obligations which will

appeal to the non-financial investor, who has been the main
buyer of these obligations in the past. However, with the business
pattern very strong and indications pointing to a continuation of
this trend, which is resulting in inventories being rebuilt and
certain capital facilities being expanded, there will be a growing
need for excess funds within the business itself. This means that
these non-financial

corporations are going to be less and less of a

passing of time in the refunding and new money

financing of the government debt.

It

could

evidences

be

that

this

impending operation will show some
will not be in a position to

that certain corporations

exchange the issues that are coming due for the ones which are
being offered in place of them because of the need for cash in
their own business ventures. The maturity could be short enough
to meet the requirements of these holders, but with the need for
funds for their own purposes great there will not be an exchange
but the turning in of the old securities for cash.
This refunding
will be watched very carefully by money market
specialists
because it could give some clues as to the amount of attrition
that may be expected in the future.
'
the Central Banks could go in and make purchases
of the issues that are coming due in the middle of May and turn
them in for 1he refunding obligations and in that way disguise

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Warren
J. Arnett, John F.

Hotchkis, Rich¬

ard Taylor and Gridley L. Wright

cut

down

the size

of

the attrition.

Purchases

such

these,

as

however, by the Federal Reserve Banks would have further infla¬
tionary effects and this is what the Federal Reserve Board and
the Administration is trying to combat, because of the unfavorable
influence it will have

on

the economy.

&

Sout!h

Co., 632

opinion of not a few money market specialists that
the Treasury in this refunding operation will not only have to stay
with short-term issues but will make full

use

of the long-Treas¬

bill. There are also beliefs that a certificate will be part of
the refunding package, but it is indicated in some quarters that
such an obligation will not attract as much attention among the
holders of the maturing May obligations as will a long bill, say
one that might run as long as a year.
With the Treasury bill tne
rate is set by the buyer and not the Government and it is believed
ury

that this will result in less attrition than would be the

case

with

fixed coupon obligation.

A discount issue likewise does not show
a loss to
its buyers, even if sold at a fixed discount set by the
Treasury as might be done in this refunding.
a

and

■

federal agency

securities

Joins Dewar & Co.

Irving Rice Adds

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

SAN

Mutty

DIEGO, Calif. —Allan V.
has joined the staff of

Dewar &

Company, First National
Bank Building.
Mr. Mutty was
formerly with Wesley Hall & Co.

ST.

Shearson, Hammill Adds
(Special to The Financial Chronicle)

SAN

DIEGO, Calif.—Van Duyn
Ridgway has been added to tho
staff

of

Company.

& Co.

Shearson,
He

was

☆

CHICAGO

☆

Joins

Copley Staff

COLORADO SPRINGS,

☆

James
BOSTON




a

(Note

that

—or

L.

Sanchez

is

Colo.—

now

with

be

can

feel

we

does

not

out

earning

healthy

enjoying

^of a

proposed
financing will

commercial

from

come

borrowed
eventually

of

money

banks—>

approximately $600,000,000. Be¬

or

of the nature of commercial

cause

banks'

deposits, the maturity of
must, in good con¬
science, fall well within a 10-year
period and the bank debt of the*
airlines will mature, on the aver¬
loans

their

age,
over
a
period
five to six years. This

between

of

mehis bank

Co.,

Boehm,
New

in Asiel
City, passed

April 20th.

(Special to The Financial Chronicle)

CHARLOTTE, N. C.

—

Copley and Company, Indepen¬
dence Building.
He was formerly
with Allen Investment Co.

West Morehead Street.

Morrison

&

Company,

Inc.,

225

000

a

So

the

you

decade

can

laxed

be

to

twice—
1960s.
lenders

the

of

why

see

afford

can

roughly

year—or

during

we

somewhat

re¬

though, ss profes¬
pessimists,
contemplating

even

sional

the

the airline in¬
the red" from

possibility of
dustry being "in

time

time

to

the

at

income

net

level.
Now

that

retically,
have

our

break

we

bankers, theo¬
can expect to
back at less than

least,

at

money

load

even

factors

let's

—

look

briefly at the earnings
sibilities of the jet age.

pos¬

Earnings Possibilities

Earnings,
of
course,
depend
upon
the realization of above
even

means

selling enough seats at

price

load

factors

sufficient

than

more

which
a

to

the operating cost of the
planes plus overhead. The selling
price of the U. S. airlines' avail¬
cover

able seat miles depends 4o a great
extent
upon
the CAB and the
cost of

putting the available seat

miles into the sky depends mostly

the

economic

efficiency of
jet aircraft.
To
help
predict the earning power of the:
jet age, we have been playing
upon

the

new

with

able

which

statistic

new

a

"cash

call

generation
mile."

seat

This

we

avail¬

per

to

seems

on

him

tually
these

no

and

is

an

financial
Insurance
The

Financing

fleet

willingness of the insurance

companies to participate so sub¬
stantially in this jet financing on
this* "long maturity" basis is one
of the most important keys to the
successful advent of the jet age.
As I've said, the above position of
airlines'

the

debt

debt
since

accident

structure
the

was

of

amount

really determined

was

fixing maximum annual debt
a level which actual

maturities at
historical

showed

experience
could

airlines

meet

(in

the

other

words, based on the cash gener¬
ating ability of their present pis¬
ton
fleet) and multiplying this
figure by the maximum number
of years over which the banks
felt they could extend themselves.
This

lenders'

the

was

answer

to

the many

people, during the days
before even the jet prototypes had
flown, who said "what happens
to your loans if, for some reason,
the jets
don't fly"? The piston
fleet would have kept on flying
and its cash generating potential
alone
should
have
eventually
us

out.

(2)—The airlines' invest¬

in

new

of

Bureau

Internal

Revenue

only seven years for piston

annual

equipment)
for

of

them

alone

which

$220,000,000,
a

depreciation

will

substantial

be

about

figure
amount

ex¬

of

depreciation in 1958

for all assets of about $200,000,000
and total cash

$250,000,000.

generation of about

cash

gen¬
throw

merely earnings per
important measure of
health.
For the piston
trunk

domestic

the

air¬

flying
today, this
figure
(cash
generation
per
available

seat

is about 4.5 tenths of
logically, has de¬
the years as aircraft
which cost more than previous
aircraft to operate per available
a

mile)

cent

clined

and,

over

seat mile have been added to the

fleets.

Now, if the new jet air¬
craft and the airline managements

during

jet

the

efficient
cash

flow

what

are

on

miles

seat

no

less

planes
and
the airlines'
any level of

today,

based

available

jected

age
the

than

management

can

be

pro¬

above basis for
it is worth.
Available seat

miles

on

the

today, for example, are 40
and load factor is
58%.

billion

Mr. Cherington estimates that the
available seat miles which the jet
fleets today on order will produce
in the 1960 are 60 billion annu¬

ally and if one adds to this the
production of some portion of the
piston fleet which may be still
in action, an estimate of 80 bil¬
lion
is

available seat miles

tion

that

shows

of

basis
load

in

1965

Simple

unrealistic.

not

outlined

Depreciation

all cash

lines

metic

-

vs.

to

than

rather
se

years.

total annual

Richard

cover

eration

long-term in¬
with vir¬
large maturities during

company money

depreciation for non-flight equip¬
ment assets. This compares with

R. List has become affiliated with

will

gets first claim

The

$100,during the period
$800,000,000 bal¬

primarily

surance

cludes

Joins Morrison Staff

airlines

debt maturities by over $100,000,-

be

versus

partner

York

the

—

of the airlines' debt structure

1961-1966.

the

Jesse

stratospherically
above
today's
cash
generation

even

levels

will

about

of

April 21st. ently will enjoy the acceptance of

Jesse Boehm

see,

can

ance

000,000 per year

Point

away

you

be, from the viewpoint of a lender
at least, a good measure of an
airline's (and, of course, its aircrafts') efficiency since the lender

maturities

debt

ment

Connelly

not

break

(1) —Examination

representative
group
of airline
financing packages indicates that
about 45%
of the airlines' $1.4
billion

as

bfeak even cash flow target

is

industry

any

free enterprise economy can
should—long survive with¬

Pioneer Cash Generation

Incorporated,

City, passed

away on

(Special to The Financial Chronicle)

NEW YORK

York

&

INCORPORATED

certainly

earnings

mean

lenders

the airlines with¬

jet airplanes alone
will be about $2.2 billion. On the
Frank J. Connelly, partner in basis of 10-year depreciable life
F. J. Connelly & Company, New for
these planes
(which appar¬

Hammill &
formerly with

Hill Richards & Co.

20 BROAD STREET

out

PAUL, Minn. —Charles E. paid
is with Irving J. Rice &

Company,
Building.

that

fact

Bullock

Frank J.

Aubrey G. Lanston

make this clear:

will

—the

the

(3)—If the jet fleets break

then—and,

even,

or

—

arith¬

back"

"airplane

"home safe" in

by

It is the

U. S. GOVERNMENT

madness!

our

"horseback"

following

bank

Long Treasury Bill Expected

Spring

Specialists in

method to

perhaps

no

have become associated with Dean

Street.

The

senior money

for
the jet age was
by the bankers. There

some

was

Point

or

Witter

of the way the

cause

This would see®* to indicate that the Treasury in its May re¬

To be sure,

Four With Dean Witter

of

eyes

power.)

Corporations May Want Cash

With William R. Staats

the

to

it is only alter "breaking
holders get any
return at all. This situation is not
accidental
but comes about be¬

in

mons.

Trophies—Tad I. Haviland, HalStuart & Co., Inc.

bringing

even" that equity

funds that would ordinarily be used for inventory or
capital expansion purposes. It would not be prudent to put this
money into long-term securities whether they be governments,
corporates or tax exempts.
is surplus

Hendrick, Jr., Blunt Ellis & Sim¬

eey,

view

Point

"hit"

equity holders—since as we shall
see
from
a
little
arithmetic,
lenders can get their money back
if the industry falls substantially
short of "breaking even" and, of

metic

factor with the

—

point

anguish

of

tears

special bills apd certificates which come due on May 15, and
nearly $3,400,000,000 of this amount is owned by "other investors,"
mainly non-financial corporations.
These investors have been
principally buyers of short-term obligations since the money
which has been put to work in the most liquid Treasury issues

that

Teach, A. C. Allyn and Company,
Incorporated.

a

of

be

can

simultaneously,

while,

tailored

market is still in an uncertain position since
it is waiting for the terms of the May refunding which is expected
to be announced today (April 30).
There are $4,500,000,000 of
The government

C.

Harriman Ripley & Co., Inc.

it

lender's

a

course,

bulk

the

that

Thursoay, April 30, 1959

.

.

from page 7

Paradoxically,
from

financing

tional Bank &

—

professional variety, which

banking system means that the
will have to be on the attractive side so
discourage the turn-in of maturing obligations for cash.

Con tinental

Dividends

rally of the

terms of this operation

William

Trust Co.,

technical

here shortly is held outside of the

Noonan,

con,

fact

The

Vice-Chair-

Illinois

a

foreseeable future.

Company.

A.

from

a

distant

more

usually does not mean very much, there are no important changes
being looked for in the government bond market until either the
offerings are decreased or the demand is increased. Neither one
of these two forces is expected to be modified a great deal in the

Chairman:

men:

the

aside

ap¬

pointed:
G.

market believes that the Treasury will issue only
in its conning refunding operation and, this

The money

being the case, at least

follow¬

The

By JOHN T. CHIPPENDALE, JR.

short-term securities

1959.

5,

.

Jet Age's Financing Piospects
Jnst Before Opening Night

The 46th Annual

June

Financial Chronicle

The Commercial and

(2004)

arith¬

the

above

on

assuming

realiza¬

factors not substan¬

tially below today's level, 80 bil¬
lion

available

seat

miles

would

total cash generation of
over $360,000,000 for the domestic
trunk
airlines.
Depreciation
should not be this high and sub¬

produce

stantial

earnings

Whether

are

probeble.

the

operating
costs
and load factors during the jet
age will compare favorably with
those of the present piston age,
nobody, of course, really
slide

rule

knows,

in the
manufacturing companies
California predict the operat¬

but

the

boys

aircraft
in

ing costs per available seat mile
of the jets will be below those
of any modern piston plane fly¬
ing today and they also predict

Number 5842

Volume 189

.

.

.

tions

that the jets can break even at
load factors well under 50%. Only
time

tell the

can

Question
airlines'

(3)

;

,

What will the
jet
equipment
substantial, can

if

and,

his

the

financial

V.-P.

sale

manufacturer's

possibilities decline noticeably
shortly thereafter. Of course, the
premature birth of a commer¬
cially
feasible
super-sonic
jet
could change the situation.
Even
lenders
are
sympathetic to the

expe¬

story.

—

further

be

true

with

Usually

Subsequent Needs

Financing-

needs

operating

actual

and

rience

(2005)

The Commercial and Financial Chronicle

vital

need

for

an

airline

to

re¬

thing to

say

airlines'

line

in

age

financial stake in the jet
would prefer, however, that

revenue

the

airlines receive favorable re¬

equipment

needs

(or
size of their second round of jet

should depend

orders)
extent

ket

grows

the

upon

airline

conversely,

or,

how

available jet seat miles the

many

views

mar¬

which the

to

the

most

important

opening night critics before con¬
additional investment in

sidering

airlines will need, say in 1965,
adequately to fulfill the demand
for
jet travel. Notwithstanding
the
good
theory, however, the
second part of my question—the
availability or possibility of ade¬
quate financing — has recently
loomed larger than actual equip¬
ment needs in the

from

the

show.

which

type

(2)

These

(1)

course:

may

of

jet

critics

are,

of

the travelling public
come to prefer one

airplane

to

was

world

heavy

jet

already has a

reflected in the air¬

by

a

actual

not

annual

rate

the

half

airline

new

of

halt—

growth in

of

during

miles

passenger

first

the

noticeable

very

slow-down—if

that

year

and will

load

respectable

factors

forward
back

Summary

in

a

the

to

even

getting

their

in

scheduled

to

predict that with the

night

of the

curtain

about

substantial

additional

going

up,

settle back in our seats to

(3) Before thinking too seriously hit show.

financial critic's note¬

operations

I'm

sure

in this room sincerely

in¬

schedules, since
veteran ob¬
(perhaps
a
little shell
shocked) of the airlines recent
battle for money.
The statistics
quoted earlier in this
address
give promise of some relatively
sunny weather for the airlines by
the mid-1960s from the viewpoint
of funds available for additional
by

REPUBLIC

STAINLESS

SUPPLIES

STEEL FOR

AMERICA'S

are

now

servers

aircraft financing.
that

on

By this I mean
basis the

break

a

should

airlines

even

well over

throw

$100,000,000 of cash per year after
covering debt maturities so in¬
ternal cash generation during the
years 1961 through 1965 should
provide well over a half billion
dollars

jet

additional

for

pur¬

chases—even leaving out the very
real
be

there

that

probability

may

retained earnings in ad¬

some

Furthermore, by the end

dition.

1965, most of the $600,000,000
of bank debt will have been re¬
of

thereby reducing the air¬
total long-term indebted¬

paid
lines'

insurance

the

to

ness

company

portion of their capital structure,
which looks as though it will be
in the

$800,000,000 range.

With

of

bit

little

a

earnings

luck, the book net worth of the
airlines by 1965 should be well
in excess
of $1 billion.
If the
initial years
at

of the jet age prove

financially and

all

operation¬

ally successful, there is no reason
to assume that lenders would not
again
least

be willing to consider at
matching dollar for dollar

the airlines' equity—so

the poten¬

borrowing
additional
funds should definitely exist dur¬
for

tial

Therefore, if the
and want
them, they should be able to find
the money for substantial addi¬
tional jet aircraft purchases dur¬
ing the mid-1960s.
I might say
here that a potential lender to
an
airline in 1965 will probably
look with far more sympathy on
a relatively high debt-equity ratio
should additional equity through
public sale be difficult to obtain
at that time, if the airline has
shown willingness to seek addi¬
tional equity during the inter¬
vening years whenever it could
do so without too severely dilut¬
ing
the
stake of its
existing
ing

1960s.

the

them

need

airlines

might drop a
the majority of

(I

stockholders.

strong hint that

equities today are

airline

ning to sell above

Excessive

begin¬

book.)

Persuasion Used

Against

Orders

lender's point of view,

Stainless steel—metal of the new and

it seems permature at
this point in history for the air¬

spectacular-but also of the established

From

a

however,
lines

order

to

many

additional

and the

jet aircraft. In many airline loan
agreements and, in fact, in vir¬
tually all loan agreements with
foreign airlines, additional orders

cone

jets are either prohibited or
severely restricted and when we

707.

for

hear
an

with

the
we

that

the

airline is
an

everyday. Republic's Stainless

pioneered into space as the nose
of

America's first satellite. It's

in the Atlas and

the

steel, most sanitary of

commercial metals,
ferred for
chemical

is definitely pre¬

dairy, food processing, and

equipment, too.

Stainless is,

in fact, the most versa¬

jet engine parts? For jewelry as well
as

textile dye vats;

atomic shields and

surgical pins?
Yet, versatile as
Steel is,

dramatic

Republic Stainless
new uses are

tile of materials. What else is used for

discovered

the Convair 880.

both truck bodies and high temperature

unexplored world of applications.

DC-8, and

so

purchasing arm of

negotiating seriously

REPUBLIC STEEL is the world's

largest producer of stainless and alloy steels

aircraft manufacturer for

purchase

being

fast, it seems almost a still

Corporal; in the Boeing

of

additional

ask the manufacturer

jets,

whether

Alloy, Carbon, Stainless Steels • Titanium • Bars •
Plastic

Pipe

•

Tubing

•

Bolts

Fabricated Steel Products

the

stainless

But

purchasing agent of the air¬

line has had any recent conversa¬




•

•

Nut6 •

Steel Building
•

Plates • Sheets • Strip • Tin Plate • Cold

Products

•

Finished Steels • Steel and

Nails • Pig Iron • Iron Powder • Coal Chemicals •
Steel and Aluminum Windows • Steel Kitchens • Shipping Containers

Rivets • Wire • Farm Fence •

Materials Handling

Equipment

•

Drainage Products

we

can

view

hope so!

thinking of the

production

they

opening
a

that all of us

aircraft manufacturers, who must

plan

today.

Therefore, we have every reason

money

if the efficiency

J.

being experienced by jets

factors

jets is below advertised levels.

the key jot¬

To summarize then,

tings

•

depend

the production.

during the jet age.

the mechanics and operating

let's all seo

not only how

profitability of
The planes' effi¬
ciency, as advertised, gives prom¬
ise of profit. The lenders can look

will, in all

markets

probability, have to be tapped to
realize

another;

personnel of the airline who must

about the size of the
since the 1958

market,

recession

future

that

lender

in

vestment in the show,

curtain

on

Both will have some¬

force.

main

The

conditions

economic

he awaits the first

opening night of the commei>
cial jet age are likely to be about

line
(3)
general

plus the ingenuity of the airlines'
sale

as

the financial critics,,
but the general public in particu¬
lar, receives the show. - We, of
as follows:
course, hope for "Standing Room
(1) The production costs have
Only" signs and a golden flow of
been
substantially financed al¬
revenue
passenger miles at the
though a portion of future ticket
box office.
This we do know—r
sales will be necessary to pay for
that the select few who have seen
some of the airplanes on order.
a preview of the show say it looks
(2) Upon the efficiency and in¬
like a combination of "My Fair
genuity of the starring members
Lady" and "The Music Man" evi¬
of the cast (the jet planes them¬
selves and airline managements)
denced by the close to 100% load

the jets are not too far out of
with the advance notices; and

they be successfully financed?
Answer:
In
good theory, the

competitive equipment-wise.

book

that the operating costs of

prove

25>

*

26

The Commercial and Financial Chronicle

(2006)

Continued

from first

.

Thursday. April 30, 1959

.

.

Essentials

-

page

for

Growth

and

Stability

Public

After this

Utility Securities
By OWEN ELY

Mexican

Business Outlook

Power is the largest private enterprise in
It serves Mexico City and 411
an estimated population of 5,105,000. The
service territory covers about 12,000 square miles.
With nearly
700,000 customers the company supplies about 40% of the nation's
electrical requirement. Mexico City is one of the few large cities
no

restrictions

on

the

in

tricity in the past decade—which has had a very favorable effect
on the growth of industry.
In 1958, 68% of system sales were to
industrial and commercial consumers and 25% to residential cus¬
tomers, reflecting the high speed at which Mexico is industrializing.

number of other countries in Latin America have
during the past
decade has shown a degree of political and economic stability and
growth equaled by few countries in the entire world, "and there is
good evidence that this will continue, despite some recent labor
difficulties. Population has grown at the rate of about 3% per

While

all

stages,

pose

Mexico

now

produces

a

wide variety of products ranging from

trans¬
auto¬
mobiles, trucks, bicycles, diesel engines, and radio and television
receivers. The basic steel industry, which increased its productive
capacity from 300,000 tons in 1946 to more than 1,000,000 tons in
1957, hopes to reach 1,500,000 tens annually by I960. The country
is also developing a heavy chemical industry that will provide raw
materials for production of synthetic libers, paper and pulp, plas¬
tics, fertilizers and pharmaceuticals. Mexico's sulphur production
is growing rapidly. Petroleum and natural gas should provide raw
materials for future petro-chemical industries.
Cotton and coffee have

now

displaced silver and other metals

the most important exports. Also with larger crops Mexico is
able to feed itself. Tourists mostly from the United States

as

now

spend about half a billion dollars a year in Mexicd; and along with
new foreign investments this balances the gap between imports
and exports.

principal

Light & Power has shown greater growth in the past
(it was founded as a
hydro-electric enterprise in 1902 by a young American engineer).
Sales in 1958 were nearly 3 billion kwh. or about 2V2 times those
of a decade earlier. The bulk of this increased output has been in
power for Mexico's expanding industrial enterprises.
The

originally financed both in

Europe and
America and perhaps as a result had a rather complicated capital
structure in the 1940s. A plan of recapitalization was worked out
company

was

and became effective in 1950.

The World Bank loaned

the

com¬

pany $26 million; and the Mexican Government made large longterm peso loans available. The Government's hydro plants also

supplied the company with wholesale power. At the time the
recapitalization became effective the common stock was quoted
around 1, but by 1955 it had advanced to a high of 161/2.' The stock
is listed on the Toronto, London, Brussels and Mexico City Stock
Exchanges, and is traded over the counter in New York. With
credit

established, the company

million

bond

issue

to

a

group

was able last year to sell
of U. S. institutional and

investors.

/:'■

$4.5

a

other

;;//••''7/V;/

generating plants with

also has the

a

total capacity of 578,000 kvv.

It

of hydro

plants owned by the Mexican Govern¬
ment with a combined
capacity of 352,000 kw., bringing the total
to 930,000 kw. Of this amount about 72% is
hydro and 28% steam.
An 82,000 kw. steam unit will be
completed next year and the
Government's 156,000 Mazatepec Hydro Plant is
expected to be
ready in 1961, bringing total capacity up to 1.2 million kw.
use

Since reorganization the financial record
may be summarized

follows:

as

Revenue
Year—

—Common Stock Record

(Millions)

Earnings

Dividends

$49

$1.66

*$1.00

42

1.96

0.75

1958—__
1957....

—

The

1956

-

—

1954

—

1953

—

1952

—

1951

—

1950

.....

1.59

0.45

1.63

0.76

27

0.72

0.22

81/2- 5

31

1.43

26

0.78

25

0.38

23

0.13

-

1

—

—

—

—

.

—

21/2
<N

41/2- 21/2

■

-

to

•

generalizations to indicate what I
think

about

It

customary
describing

is

current

in stock in 1955,

1

eration

a

an

gen¬

considerably in 1959,

°

to

at

stock has been quoted
which

recently over-counter around 15,
it yields 6.7%
(disregarding the 5% stock dividend)

price
and sells at about 9 times
1958

P. R.

earnings.

Salisbury Opens

LAS

VEGAS, Nev.—Patrick R.
Salisbury is conducting a securi¬
ties business from offices at 120
South
Third
Street, under the
firm

name

of

Capital Inv. Opens
NEWARK,
vestment

He

was




N.

Co.

J.

has

—

Capital

In¬

been

formed
with offices in the National New¬
ark & Essex
Building to engage
in a securities business.
Fred L.

Salisbury Securities
formerly with First Carvalho
California Company.
firm;
Co.

forecasters,

detail

some

predict

trends will

continue

person,

that

these

for the

next

six

months, but after that there
will be a leveling off or the situa¬
tion

is

uncertain

too

to

permit

longer forecast.
I

will

little

a

:

venture

neck

my

out

a

further.

Except for some
temporary aberrations that can be
attributed to the threat of
to

or

ment

the

occur¬

inventory adjust¬

will

that

steel

a

strike and then either to its
rence

the

accompany

failure of the strike to occur, it is

that

view

my

experience
least

tional

by

will

economy

moderate

growth for
The Gross Na¬

year.

Product, which is probably

now at an annual rate of close
$470 billion, may increase by

to
as

a

the

much

5% further in the next

as

year, measured in present prices.
The existing volume of unemploy¬
will

ment
faster

permit

rate

mediate

pected

of

be

than

is

a

principal

of

reliability

and

:

of

principles and postulates

causative

factojg,

maintained

that

motivational

or

forecasting
be

can

on

c

tains

as

the

aggregate exceed

also have

some

investment,

autonomous char¬

investment-multiplier

ing all

investment

as

3%

<a

average..? '
It is possible—and

hope

a

rather

than

that this expansion can be accom¬
If so, growth at a normal rate
with moderate fluctuations could

continue

for

long time in the
future.
If inflation develops, the
expansion in dollar terms, though
not

real terms, will proceed
rapidly and lead sooner or

later to

a

downturn.

This thought leads to considera¬

tion of

a question that is far more
important than the business out¬

be expressed in

may

ways:

to

bilization!

What

are

the

var¬

forces

the

maintenance

of

the

The desirdd

of events is

course

•

be achieved without

can

some

in-

stabil ity. ./}, v;;

It is

-

\ i■
the task

not

of

the rfore¬

general level of living of the pop¬
ulation, the first, requisite is a>

rely

commonplace and

a

statement.

In

more

quires

an

tivity

of

increase in the produc-,
labor.
As statisticians,

has

frame¬

expendi¬

for economic
this

This is

thereby

theoretical

on

tion.

self-evident

terminology,

sta¬

Forecasters

purposes.

concerned

approach

almost solely

,

are

with the

we

this

re¬

discuss at great length the

can

complex

problems of measuring
productivity. As forecasters; it is
important that we be aware of the

being used. It is not suf¬

measures

Government's budget.

ficient to have

Mention may be made of vari¬
ous
other forecasting techniques

some

or

tools.

Some

rely
indicators,

sensitive

a

in

more

for

who

this may be
a
forecast—

-

"

technical

governmental

than

hear future?

expenditures

and

ture .programs

more

con¬

been extended to defin¬

Government

work

probably not
year
on
the

What

more rapid increase
in output of
goods and services than in popula¬

acteristics.

year, a
somewhat slower rate is to be ex¬
—

sort?:

some

underlying market forces
that are likely to operate in the

Frequently if components, add up caster,; however interested he may
to a total separately derived,-the be ;in the-problem for,'other rea¬
results are considered to be re¬ sons,
to prescribe measures for
liable.
;
v;. achieving such broad social objec¬
tives as growth and stability. The
One application of model-build¬
forecaster, as such, is concerned
ing in forecasting is the-reliance
only with appraising the likely
upon so-called multiplier effects.
consequences of the actual forces
This
technique developed from
that may influence the course of
the emphasis by the Keynesians
events.
He is likely to be more
on
investment
as
the
primary
concerned with short-run factors
autonomous factor in causing eco¬
that may create instability than
nomic fluctuations.
While this is
with
the
long-run elements of",
a sophisticated approach based on
growth. \
7
rational theoretical postulates, its
Productivity — For a rate of
basic
tenet may be-questioned.
Consumer expenditures, which in growth adequate to increase the

cept has

next

of

the

are

large

a

of circular reasoning and
a
substitute for thinking.

amount

pected after that

the

positive "governmental

may

the

in

objec¬
should

♦

ex¬

indefi¬

or

also desirable that this .growth be
bring about -attained without wide fluctuations
important shifts in relationships in employment and. income, but
and affect the aggregates.in dif¬ one of the major unsolved
ques¬
ferent
ways.
This technique of tions, is whether maximum growth
influences

im¬

be

can

be

intervention

which

on

these

Can

penditure-income-flow approach, the maintenance of a rate of
which deals with aggregates for a
growth adequate to broaden our
few broad components of the totaL levels of living and also give as
product.
These aggregates^ how-, much assurance as possible of na¬
ever, represent results-not causes.
tional security in an uncertain in¬
Little
consideration
is ;: given to ternational
political climate. It is

provided

5%

as

there

a

technique depends upon the basic

The

nitely. If over-all expansion is
great

such

stability?

operation of free markets

In the final analysis,-the-accuracy

us

was

tives be accomplished through the

Kkcrry:t.

.

somewhat

growth in the

future

to

a

able

reduces

inconsistent forecasts..

of

some

reading

the

so-called

elements

of

have

tea-leaf

primitive muniboOthers have faith in con¬

trol of the money

themselves

supply and

con-,

with

trying to
figure out what the monetary au¬
thorities -will

do. /If their theory
reliable, the/task/of deter¬

were

mining

monetary policy and of
predicting it would both be very
simple. ' |
•/
In

all

of

has [ been

most"

thd

ence

simple

the

about

tion

search for

jto the complex questions
future/too little atten¬

answers

the

the

market

given

basic

to

forfces

course,

of

of

some

that

influ¬

events

economy.'- The great

tribution

an

increase in out¬

put per manhour, unless we find
statistical process of adding

leisure to the gross national prod¬
uct.
Even
output per reported
•

which

or

jumbo.
cern

on

in

worker. presents

lems,: if
jobs

statistical prob¬
workers have two

many

if they spend unemployed

or

time

doing

work.;.they formerly
to do.
Although
changes .in ■ individual industries
are important for various
reasons,
the more significant measures are
hired

others

those in terms of aggregate output,
which include the effects of sub¬
stitution
with

among

varying

products

amounts

made

labor/

of

This substitution effect may

be a
important contributor to in¬

more

creased output than increased out¬
per
worker
industries.
"

put

,

f in

individual

..

a

Forces Affecting Productivity

con¬

of

Wesley Mitchell to
thinking.about business fluctua¬
tions was his rigorous analysis,

While

long-term measurements
indicate that productivity has in¬
creased

persistently over extended
upon empirical findings, of periods of time, the rate
of in¬
underlying forces of the mar¬ crease has varied over shorter pe¬
ket.
Particular
riods.
emphasis
was
Nor is the increase auto¬
placed on the factors that influ¬ matic Or to be taken for granted.
based
the

Forecasting Techniques
The techniques of economic

an¬

alysis and forecasting have devel¬
oped along a number of different
lines.

How

helpful may each of
providing answers to

enced prices, upon price relation¬
ships,. and upon pricing policies
of
businessmen.;- This
was
the

of stability and growth?
One technique of economic an¬

basis of -the analysis engaged in
by those who met at Helen Slade's
in the
l'920s.' The other day I
looked through a new
book on

alysis that has been developed in
the past quarter century and cur¬
rently the most commonly used for

economic-forecasting and nowhere
could I find a.reference to prices
as
a
causative
factor.
Analysis
market

comprehensive

e^in£> factor, at least until the company is able to obtain

further rate adjustment.
u

for
in

defensible
conclusions
the promulgation of

reaching
and

that

expressed more broadly, what are
the requisites for the attainment
of sustained growth with reason¬

consistent pattern helps in

a

forecasting is what may be called
model building.
Development of

substantial increase in fuel prices

a

outlook?

current

stability and growth?

1956, 1957 and 1958.

The decrease in earnings in 1958 was due
largely to a non¬
recurring tax credit of $1,133,000 in 1957, as well as unfavorable
hydro conditions in early 1958. A
wage increase had also been
put into effect in March, 1958 for which the
company received a
compensating rate increase early in 1959. While heavy rains and
resulting high water storage are expected to reduce steam
1S

the

trends, which are already
to
any
knowledgeable

familiar

threats
«Also 5%

Outlook

Current

might bring this period of
prosperity to an end?
What are
the
possibilities
for
continuing
prosperity and growth for an in¬
definite period in the future?, Or
viewing the problem more broad¬
ly, what are the essentials for
sustained growth with
broaden¬
ing levels of living? What are the

I6V2- 8

5

boom.

a

that

I6I/2-IIV2

31

...

are

Need I add facts to these simple

ious

91/2

35

1955

the

and

into

turn

question

I31/2-II1/2
15

The

look for the next 12 months. That

Approximate Range

into

tendencies the model is constructed. Its most
prosperity common application is in the ex¬

inflationary

develop

will

threat.

plished without further inflation.

The company and its subsidiaries now have 16 hydro and three
steam

becoming

uncertainties

whether
will

at

Mexican

ten years than in the previous half century

when
prosperity

stage

immediate

an

/

after

boiler tubes and pipes to lathes, electric motors, cables and
formers. Mexican plants are also assembling or producing

the

potential weaknesses are not
likely to be important enough to

a

and national output at about 6%.

uncertainties

and

at

there

While

the

suffered political upsets in recent years, Mexico

annum

is

recovery

of elec¬

use

weaknesses

are

municipalities, with

of Latin America which has had

develop.

justments

Mexican Light &

,

odology, let
tion

Light & Power Company

Mexico, with assets of $252 million.
other

digression into meth¬
return to the ques¬
posed earlier: What
factors
might bring the current
prosperity period to an end? Or

Strategic Factors in Current

ple,

these
our

be

in

questions

about

the

mainte¬

nance

measurements

of

based

on

or

the

motivations

of

the

place is not precise, sim¬
easy,

but it

comes

nearer

the Gross National Product and of

to the realities of economic forces

its

than

various

provide

the

components,
basis

of

such

which
tech¬

niques, has been the most signifi¬
cant
to

and

invaluable

economic

contribution

analysis of all times.
The necessity of having results fit

the

the

other

short-cuts
methods.

provided
This

is

by
the

It

depends

upon

positive

actions

taken by businessmen with respect
to
capital
equipment,

management procedures,

research,
and the

like.

upon

the

upon

the

It may

depend also

availability of credit and
volume
The
the

and

structure

forecaster

forces

that

is

of

concerned

affect

taxes.

with

short-term

variations in
as

productivity, as well
with long-term trends.
During the past year there has

been

remarkable

a

increase

in

productivity as measured by total
output per worker, as well as by
output per manhour. Such an in¬

discipline on which forecasters
must rely if they are to produce
the most reliable guides
to the

cycle.

future.

economy

crease

the

to be customary in
phase of a business
future course of the

seems

recovery

The

will depend in part

upon

Volume 189

Number 5842

.

.

The Commercial and Financial Chronicle

.

the, future rate of increase in .pro-

surance

ductivity and also to

apiliiy.

consider-

a

able extent upon how the benefits
of
the
increase are
distributed

the various elements of the
population.
;
T

.

,

...

,

•;

.

,

Justifiable

and- wage policies of business and
of labor organizations. In a mar¬
ket

v important
- growth

■

is

appropriate pricing of

ominous threats to stability dur-

used

|ng ^he postwar period has been
vtho threat of inflation that has

nore

tribution.

Most

of

the

dis¬

currently

forecasting techniques ig¬
pricing decisions and their
as strategic factors. Wesley
the substitution process, increases
resulted from the efforts to spend Mitchell
placed great emphasis
in.nveraU prooucttyity
reuuiread^ tyjore for,consumption and invest-"[ upon the pricing policies of busi¬
ditiOns to plant ana equipment tdent than could be
produced at nessmen operating in competitive
and also expenditures on research
time
: ^ markets. In view of the growth
and development not immediately^
of labor organizations to a posi¬
reflected in Inci^ased
putpuK^x^V ^ i
Lf.ss Inflation Seen V,
tion of powerful influence, if not
penditures for these purposes re- ;
u

—

Whether through improvements in
individual industries or: through

effects

.

,

^

the avoidance; of
those'Ration > ^have probably, never.

quire saving and investment in the
broad economic

terms
a

meaning"of

.

gamely, ihc withholding
IKS*
conWie-w«r tnan ttiey are at present,
All investment, • of Inductive capacity has been ex-

part of current output from

sumption.

course, does not go to enlarge
ducti ve plant and etiuiWffient: some

housing,

.eminent

loaned

to

some

and' to-

consumers

nnwrnmpnt
e-

th

Since

,

e

.w a r,

improved equipment, the adopbon or more efficient techniques,

-

-

ending^wf

the

and

^investment

in -order

labor

need

the

to

responsibility for the main¬

tenance

to

assure

throughout the world has been at
high level and productive capac-

an

iif i13S
shortages

greatly. Many
the heritage

stable

in

growth. Prices
large

be¬

part

of ;iheir; influence

the

on

T

Price

Increases

about

■

.

been

has

much

recently of what is called
"adminstered
price inflation." decline result in income distor¬
Unquestionably under conditions tions, which curtail the demand
otherwise favorable for inflation, for goods and services being of¬
price and wage increases, how¬ fered. These are factors of insta¬
ever
determined, can contribute bility which may bring on down¬
to the inflationary
spiral. This ward adjustments and retard*
is not to imply, however, that all rather than promote, growth. The
price and wage increases are nec¬ objection to administered prices
essarily inflationry.
In a free and wages is not so much that
market economy, particular prices they create inflation but that they
and
wages
should be increased tend to retard growth and to in^
where necessary to attract capital crease unemployment.
Inflation
and labor into activities for which might be created if monetary; and
there is

fiscal policies attempt to

when

such

accomplish
these purposes and
not justified by market forces of
supply and demand that they

evitable

a growing demand.
It is
prices are administratively
fixed at a level not necessary to

create

distortions and become

influence

for

sell,

or

upon

■

of their direct

decisions

to

buy,

instability.
to

Impact

Rising prices and costs of this

'

an

nature

later become

sooner or

tors for

,

To

that

were

benefits of increased

productivity
go to enhance profits, investment
and expansion of productive ea-

There is more reason
defla¬

Continued

on

page

°r VV+k1*

was

from

the

a

tremendous,

^cquipmcnt.of the

capital
years.

previous

in^St^nt
Homfn'wc.? housing, for other
demands for tr Wborrowing

effective

supply. The continrelatively hign level of un-

ue(j

structural

to

output

TheP

a

interest rates

consequence

rose

to the highest levels in this generation, although not high in comparison with earlier periods of

Rates

Interest

as

developed,
Federal

the

budget from

rec-

a

Electric

^

power

-

the key io

ord-breaking peacetime deficit to
an approximate balance will remove

least* reduce

at

or

im-

an

inflation^ »

,

better

Competition ttibOyh domestic
and worm markets is likely to
be m"ch more |evere_^ ?s
been, and jsnould operate to
hold down pricqnncreases. Prices
foods

because

offier

and

increases

of

living and

eeononuc progress

agricultural

probably

will

products
Present

well

as

are

shWof

Government

of

prosperity.

jd&S

as new

drastic

imrtant
the available supply of savings. As

factors

in

decline

FACTS—195S

QUICK

livestock

Per Cent

Althoimh

for

demands

long-term and
roce^o^^ef C'U±f "J®
and have been moderate
credit-both

to

romverv

Hate

horrnw

go^mmments and
mort
aaces^ncrease^substantiall^ Iii-

hags bv

on

terest

rates

sharply in

first

at

declined

to reduced demands and to monetary policy ac¬
tions.

last

and

response

sur-

Increase
Amount

livfng

cost of
indexwill continue
to be stable or possibly decline
.

,

and subsequent

111 rlsmg cosls-

Net Income for
Common Stock

kjfi

•

It

true

is

that

aggregate has shown only
moderate rate of expansion.
The

future

of

course

a

invest-

there

are

at End of Year

borrowing as in the
period? What will be the

effect

of the

from

drastic

shift

in

one

whopping

Government deficit of over $13 billion
to something close to a balanced
year

a

budget?

Will home mortgage demands continue as heavy as they
have

been

ther?

or

even

increase

fur-

What other

borrowing dedevelop?
To what
extent will savings flow into investment through the stock market?
Will
adequate savings be
available to meet borrowing demands

may

mands?

ings

How will the

influenced

be

use

of

sav-

fears

by

of

Avoidance of inflation-Inducement
tfio
the

at

to

save

nrncnonf

prospect
least

'savers

future

return
that

assurance

saved

future

invest requires

-Pn+nro

of

some

amounts
for

and
r\-f

will

use.

must feel

be

This

nr

or

the

that the

that

dollars

they invest will not lose value in
-the

will

course

not

owners

ing

are

of

time

lose

—

more

willing to

or

at

least

than, .the
pay




for as-

6

33,328,521

f

15

Kilowatt-hour Sales

2,381,562

6

Peak Load-Kilowatts

601,000

14

Customers at End of Year

207,432

4

7,840

3

(in thousands)

Average Annual KilowattHour Use Per
'

Residential Customer

frL"

creased labor c^tjresulti g: f o
the pressure of ^^eiful labor o perhaps

as

lrinSe benefits. Of p
great lmportanqg; are the conbmmd rtinc^eafH|A Pj;^,es
^"7
^ e +SO°dsJhhfResult
p

from fbe blgher.nla^or costs. R s1®rofits, folllqWmg ma t a
of a SUuP
Si
e^ei? iW ^11h inHiontP
y
d
tl}at wage costs^arqnot the sole
clement °f pnce^increase.
One of the important questions
;

,

.

bi economic analysis for the immediate future, j^gyhether these
forces for rising^prices will be
strong enough

t^wbring about the
persistent inflationary trend that

power

and

our

increasingly indispensable to the

national economy and

more

abundant life

security. When this concept is ad¬

hered to under

a

system which respects the dignity, worth and

freedom of every person,

vital task of

then

we

know

we are

succeeding in the

satisfying human wants. To this Puget is dedicated.

often predicted, occasionally

so

feared. Can

^tolled, and
Ollt

Constantly expanding use and new applications make electric

wprp

,

flSC3l

Slid

y

nnlieies

P0l C

created

distributejxhewly

that

monGV*

will

Doiiii,.ai

available

means

2

Past* T.he strongest foice lor

is

inflation?

22.4

$1.44

,

Utility Plant

,for prices of services and
various element§g$)f cost to adjust
'JPw?rd
a lag£Pg rlSJP+01Ife+ho

f^nbe beLfifs^S?

much

1955-57

8

Gross Additions to

ency

business capital expansion require
as

$1.97

Dividend Rate Per Share

other

the^tao^yement of <toe

savings, and

8

~

Operating Revenues

interest rates
will have an important bearing
upon
economic growth and stability. Questions to be considered
by forecasters include these: Will

ment,

w

Per Cent of

forces that tend * to raise prices,
Some of the basic raw materials
that are still responsive to market forces of deitfiand and supply
might recover somewhat furtner
flation. Little of the rise in rates from their declittfs in the past recould be attributed to the shift in cession.
In the dbsence of other
monetary policy from one of sup- stimulants, however, this moveplying reserves to a more nearly ment may be near its limit. There
neutral position.
Bank credit in remains also the^persistent tendthe

*

Common Stock

^

Responsible

increase, which brought long-term
rates above pre-recession levels,
reflected the continued large total
borrowing demands, especially by
the Federal Government, and also
a fear
by investors of renewed in-

$ 6,424,342

Per Share of

Costs Not Solely

Wage

sharp

Over 1957

™

somewhat. This %ill remove one
element of escalation in wages,
that has been aii'Hmportant factor

The sudden upturn in rates

summer

of

Pressures

at

recession

during

suPPlies

^

f

nressures

SSl lha

e„iS5^iip;p<;9

even

policfctlw^- Perhaps

more

impoaiSfit

threat

an

to

stability than, th^tlgnger of inflation

may

arise^lxom

of Puget's 1958 Annual Report, write: Frank McLaughlin,
President, 860 Stuart Building, Seattle 1, Washington

ad°Ptl0n of sucfa^policies.
Pricing

For copy

the price

PUGET SOUND POWER & LIGHT COMPANY

in

that the

the extent

economies in?the use of labor
—provides a basis of increasing

a

fac?

retardation of growth

demand,

tionary effect of such policies than

produce.

collapse more disastrous*

The More Harmful

instability.

be concerned about the

validate

prices, but eventually .these
attempts will only make the in¬

:vt More important, than the expan¬
tu^n ^JKeckthe balance of saving, sionary aspect of administered
investment, and consumption, as prices is their influence toward
effects

inflationary effects.
in prices ot

increases

decrease them as costs

failure to

distribution-of—ineome,. which in

■weir &Sv because

their

Excessive

discus¬

employment—though due in part

finally been met. One
th_eQ prmciPa* factors reaction
in the
1957-D8 recession

of

important

cause

fadlitiS,

is

ofwages, they too must bear some

are

---ent .t at tllele are

a

•

into Gov- :lo"Ser se"ous slWrta«|s
which may ori.W^W to oemands. Productivity
may not contribute to productiv- . per workei has increased remarkity. Likewise Some part of savings ?hly through the installation of

.goes into

dominance,1 in ' the determination
of the

i

sion

one

the factors of production and

,

"

There

of the most
essentials
for
stable

economy,

tion against depreciation in the
value of money. One of the most

-

savin g

,

ing is invested on a fixed-return
baisis, an essential for continued
saving and .investment is protec-

among

•

cf
their / future ' availSince the; bulk of the sav-

27

(2007)

PUGETPOWER

2H

23

Tlte Commercial and Financial Chronicle

(2008)

Continued

same

from page 27

low

credit

interest

cannot assure

Strategic Factors in Current

is essential, but
credit, though a tempo¬
stimulant, in the long run

Adequate credit
excessive

Business Outlook

rary

will

lead

parity in the affected industries is
encouraged. If all the benefits of
increased productivity, plus the
returns from rising prices, go to
workers and to profits in indus¬
tries experiencing the increases,
then other consumers will find it

products of
those industries. Attempts to raise
'wages and other incomes accord¬
ingly will create serious difficul¬
ties and further dislocations, as is
evident, for example, in the problem of teachers' salaries and in

not

difficult

to

the

buy

Other costs of government. People
fixed or lagging incomes will

On

puffer

reduction in

a

their

pur¬

Many consumers
Will simply decide not to buy the
products offered, as they did with
chasing

power.

is need for broader

rec¬

ognition of the postulate that at¬
tainment of maximum growth re¬

that the benefits of in¬
creased productivity be shared by
the largest possible number of
quires

This

consumers.

can

national
product on a scale which will
permit such an increase in the
standard of living as cannot be
achieved in any other way.
If,
however, costs are allowed to
increase, the danger is perhaps
e

gross

but rather of

failure to expand

a

production and reduce unemploy¬

be done most

ment."2

Government Cannot Assure

The

tendency to limit the dis¬
of

benefits

the

of

pro¬

ductivity is perhaps the most im¬
portant unstabilizing force in our

—

our

Neil

As

economic de¬

Jacoby

re¬

cently

pointed out to the Joint
Economic Committee, a requisite
for maximum growth is the res¬
toration of what he

calls

"struc¬

tural

flexibility" through "creat¬
ing the framework for workable

competition
Where it is

in

markets

many

absent."1

now

He

plained that "Competition in

ex¬

open

markets is the fundamental prin¬

ciple of

free

a

centrallyIf competition

versus

directed economy.

*s pervasive and

a

resources are mo¬

bile, enough prices will decline
quickly enough when aggregate
demand is shrinking and
enough
resources will move into more re¬

munerative

sitive

industries,

monetary

-

so

fiscal

that

sen¬

restraints

will
serve
to
prevent inflation
Without creating 'pockets' of un¬
employment and economic stag¬
nation. Conversely, an

expansion¬

monetary-fiscal policy will
more
rapidly induce movements
ary

of

into the most
urgent

resources

uses, enabling total output to grow

for

a

ing

longer time without produc¬
'bottlenecks' and inordinate

price increases."
In

a

recent

speech, Per Jacobsson, Managing Director of the Iniernational Monetary
Fund, ex¬
pressed
with

look.
"

similar

a

respect
He

"

point

the

to

of

view

current

out¬

said:

If in these circumstances
and prices are held

costs

down,

there

is a
very good chance that
recovery will continue and unem¬

ployed workers will be absorbed
into

the

active

labor

force

al¬

though, as in the past, pockets of
high unemployment may present
special difficulties. Moreover, if
there is proper restraint in costs
and

prices, there will

be

a

stimulants

and

through

or

easy

increase

instability. Such policies
vent
are

may pre¬
defer the adjustments that
essential for the attainment
or

and maintenance of

They

also

may

stimulants

balance

a

the forces of demand

in

and

supply.
artificial

inject

that induce unsustain¬

economic

developments.

Many of these were necessary or
highly desirable because of the
exigencies of the times; others ac¬
complish desirable social objec¬
tives. Some reflect the desires and
needs

ments.

Existing interventions of gov¬
ernment into the operation of the
economic

system

a

March

12

?*ei'
in

Jac°ky's
prices

issue

of

the

and




—

p.

in

1.

and

than

growth.

is

It

per¬

In reviewing

^

product
that is ap¬

any other measure
propriate under all

uted

be

cannot

solved,

by

however,

simple techniques of analysis.

the behavior of the Canadian dollar, the Bank of

During the past year and a half
foreign exchange market for

conditions.

the

made

be

must

the Canadian dollar has remained

for

that bank

It is most important

ronto, Ontario.
is

It

credit not be employed as a sub¬

rate is an enigma.

that

true

in

this

period

deficit in non-merchandise trans¬
actions

been

continuing to
high of $940
million in 1958. The key develop¬
ments during the year included a
marked decline in U. S. outlays
a new

installations

defense

on

in

Can¬

sharp drop in immigration
and immigrants' funds, and a con¬
tinued deterioration in the bal¬
ada,

a

tourist, traffic.

of

ance

Net pay¬

business

various

for

ments

the

has

reaching

grow

serv¬

exchange
rate
has
shown
ices and for interest and divi¬
investment demands exceed
tlie- more frequent variations than in
dends
remained
very
large,
the previous six or seven years.
supply of savings available for
And perhaps also one may detect though easing a little from the
lending and when there is rela¬
previous year. In 1959, however,
a
slight
underlying downward
tively full utilization of resources.
net
payments for interest and
In
a
broad
sense,
bank credit tendency. Nevertheless, each siz¬ dividends
seem
likely
to
rise
able dip has been followed by a
changes
should correspond to
notable rise and just recently the again and the prospect is for a
changes in savings that are held
further widening in the total nonrate
has
been
running
above
in cash form, if economic balance
merchandise deficit.
$1.0312 (U. S.)
is to be maintained.
With the widening here and in
The Review points out that the
Monetary
policies
should
be
the merchandise trade deficit as
strength in the rate has persisted
conducted so as not to contribute
in
spite
of
some
important well, the "Review" says there is
to
instability by forcing credit
little doubt that the total current
changes in economic and financial
liquidation or stimulating unsus¬
account deficit in 1959 will be
conditions, including the weaker
tainable credit expansion. Mone¬
than
the $1,100 million
world markets for Canadian ex¬ larger
tary policies, however, cannot be
ports and the big deficit in the registered in 1958. Whether it will
expected
to
offset
instability
government accounts.
It notes go as high as the $1,400 million
arising from other factors. To at¬
reached in the 1956-57 boom is
that Canada is continuing to run
tempt to do so would be likely
more problematical, but there can
a
big deficit in her current in¬
to
accentuate
rather than pre¬
be
no
question at all that the
ternational accounts and that for
vent
instability
in
prices
and
Canadian economy will continue
the financing of this deficit there
for some time to come to depend
employment
in the
long
run. has been an
increasing reliance on
There is no case—at least since
capital inflows through security upon a heavy use of foreign re¬
the establishment of the Federal
sources.
at

stitute for saving

a

time when

.

transactions.

Reserve

System
has

downturn

—

been

in

which

brought

a

inflows

Such

on

are

affected

con¬

siderably by official fiscal and
Downturns have
monetary policies and by the rel¬
usually
developed
because
of
ative levels of interest rates in
pricing policies and income dis¬
by tight money.

tortions

or

unsustainable specula¬

that were often
aided by excessive credit expan¬
tive developments

Canada

which

dict.

the

and

United

States,

far from easy to pre¬
such circumstances, the

are

In

Review concludes that "it is prob¬

wise to keep an open mind
likely movements of the
exchange rate."
ably

Summary

about the

have contrib¬ of economic analysis that have
stability and growth or been developed in recent years
much
they have actually provide more precise instruments
created instability and retarded to work with, but skill and judg¬
growth.
Special and temporary ment are needed in their applica¬
stimulants
by government may tion. The course of events during
the past 30 years has been influ¬
either have the effect of
inducing
commitments that are not sustain¬ enced by powerful factors of a
able or, if recognized as
tempo¬ special and transient nature. Gov¬

various

their

but

motives,

the economy that will raise prob¬
lems for forecasters to solve. They

Scotia concludes foreign exchange

Nova

There is no fixed amount

question of liow much these unemployment. Some of the tools

the

altruistic

adoption might be forced by the
discipline of the market.
Until
they are adopted, and maybe even
if they are, there will continue
to
be elements of instability in

Keeping an
Open Mind on Exchange Rate

adequate supply of cash balances
for the effective operation of the

Conclusion—The

measures

to

how

palliatives, have no influence ernmental intervention has been
encouraging investment that a dominant rather than an inci¬
or
marginal
influence.
contribute to sustained dental

rary
in

of

One

the

notable

most

fea¬

of Canada's external posi¬
during the past year or two
has been the stability of total
merchandise exports in the face
of the marked cyclical swings in
the U. S. economy. In 1958, it is
true, exports of most basic wood
and
mineral products did show
tures

tion

substantial

declines.

offset

were

these

But

the year

for most of

by increases in a few products
subject to special sales conditions.
With the disappearance of these
conditions

toward

the end

of the

total exports began to sag
little, despite the business re¬
covery in the United States.

Change in Inflow of Funds
The "Review" goes

to point
foreign
capital which have been financ¬
ing the continued current deficit
that

out

have been

on

inflows

the

of

changing noticeably in
the one hand, the

character." On
volume

investment

foreign-controlled

in

companies

direct

of

in

has

And certain related types

of

shown

substantial

Canada
decline.

a

corporate financing have also
sharply. On the other
the inflow of investment

fallen

hand,

funds of

strictly financial
very mark¬
edly in 1958. In particular, the
amount
of
new
provincial and
municipal
borrowing
returned
very close to previous peak rates
and, in a reversal of the, fairly
consistent repatriation of Federal
more

a

character

expanded

Government

securities

earlier

in

there were substantial net
purchases
by
non-residents
in

years,
1958.

year,
a

Rockford Sec. Dealers

will

growth.
their

Whatever the

reason

adoption, they have

times

had

the

result

of

for

some¬

causing

based

to

a

formationmental

actions than with the forces of the

has

free market.

countries

This

does

not

imply that

gov¬

naturally

have

Forecasts

forecasters to be more concerned
with governmental policies
and

large extent upon in¬
views as to govern¬

or

policies.

In recent years,
been

a

shift

away

however, there
in nearly all
from
govern¬

mental controls and interventions.

Private activities and policies have
or should not en¬
in
importance.
help maintain! growth been ascending
and stability. It
More and more the judgments of
simply means that
such policies and actions should the market place, the pricing poli¬
be directed more
purposively to cies of businessmen, and the de¬
that end. Vision and
labor are
foresight are mands of organized
deavor

to

essential

Outlook for Exports

been

ernment cannot

The

export prospect,
suggests, must be
viewed
against the background
of plentiful world supplies and
increased competition both among
present

"Review"

the

the Western countries themselves
from

and

the

expanding

munist economies.

that

the

will

exports

the

of

end

for 1959

than
58

total

as

flow

Canadian

of

turn up before the
but the outlook

year,
a

whole is for

continuation

a

Com¬
There is hope

on

no

the

more

1957-

plateau.

becoming strategic forces
Meanwhile, it may be noted
be given greater con¬
that
Canadian
merchandise im¬
sideration. Perhaps it is a vain
planned
ports declined substantially dur¬
governmental
measures "adopted
hope to expect that special in¬ ing the greater part of 1958; and,
to
correct
economic
difficulties terest groups Will reduce their with exports comparatively un¬
have
been
continued
after
the pressures on government for self¬
changed, the deficit in merchan¬
planning.

reason

elements

of

economic

Fiscal policies must be
in advance. Too often

for

their

adoption

had

ceased to exist.

policies

2

Cf. also

"Chroncile,"

Per
p.

—

For

the

Jacobsson's Admonition,
IS.

again
that

must

ish benefits,

that labor organiza¬

tions will temper their demands,

real

resources

rather

long run
promotes

the

policy is

foregoing dis¬
current deficits,
already have a
powerful influence upon the course cussion of strategic factors in t€e
of events. Many of them are not current business outlook leads to
adjusted to cyclical changes in the conclusion that there remain
the private economy and tend to enough uncertainties so that fore¬
aggravate instability. Not enough casters are not likely to experi¬
consideration has been given to ence the hazards of technological

argument for

"Chronicle,"

of monetary

through, price
sion.
supports, credit guarantees, tariffs,
subsidies, and the like—as well as

Monetary
flexibility

retards
progress

in

changes in the rate of use of ex¬ remarkably strong, says the cur¬
isting money, which may be in¬ rent "Monthly Review" of The
of
Nova
Scotia
entitled
fluenced
by liquid assets other Bank
Canadian
Dollar:
Foreign
than
cash and by anticipations "The
Exchange Enigma."
The Bank's
and other attitudes of the business
general office is located in To¬
community.

the

of society for services and
protection that can be supplied
best,
or
only,
by
government.
greatly retard the current upward Many, however, have been posi¬
movement.
It will be aided by tively harmful interferences de¬
competition from abroad. Unless signed to protect particular sectors
farsightcd price and wage policies or interests from the unpleasant
tire adopted by industry and labor,
effects of economic change. They
instability will continue to be a often retarded essential adjust¬

velopment.

that

and

the maintenance of an

assure

infla¬

creeping

benefits few and harms

that

many

unstabilizing effects of
price and wage policies,
through governmental supports
vent

unwise

economy today.
It is the force
most likely to bring to an end or

characteristic of

tion

Allowance

fluence

tribution

products that can
pro¬
with
lessening utilization

resources—not

Attempts to overcome or circum¬

— perhaps only — by a
There has developed in the past
of the prices of those
products that can be produced at generation a view that stability
less cost. To be sure, some of the
and
growth can be assured by
benefits must accrue to the indus¬ governmental
actions.
The
at¬
tries affected in order to attract tempts to induce recovery from
capital and labor to them.. But depression and the disturbances of
Undue increases in those shares war and of postwar reconstruction
to governmental actions of
Would stimulate output without a led
corresponding stimulus to demand. various sorts to control or in¬

Force

those
duced
of

haps not to be expected that poli¬
cies of this nature will be adopted
for

Canadian Bank Advises

Folicy

Fixes Monetary

or

Intervention

Governmental

ple and not by a limited portion.
Such
policies would probably
result in slowly falling prices for

depressed;

are

The role

shared

relative to gross national

Stability

lowering

Most Important Unstabilizing

those that

and
growth
will
be
by most or all of the peo¬

progress

1959

Thursday, April 30,

.

.

without aiding

sectors

exuberant

is
already

the

stimulate

to

credit

easy

economy,

likely

economy.

able commitments.

effectively

strong

to

conse¬

elements

weak

much of renewed inflation

so

credit will in the long run

automobiles in 1957 and .1958.
There

t h

n

unstabilizing

to

Where there are special
in an otherwise

quences.

i

increase

"easy money," i.e.,
availability and
rales, taken alone,
sustainable growth.

reasons,

abundant

.

that business will have the vision
to follow

the

pricing policies

privileges

and

so

that

benefits

of

dise trade narrowed quite

sharply.
Since
last
September, however,
imports have turned up again and
the merchandise deficit has been

increasing once more.
At the same.time, the traditional
.

•

•>.»/?. tr

h>

'• wa

ornrte

Elect New Officers
ROCKFORD, 111.—Tbe Rockford
Security Dealers Association have
elected their officers for the 19591960 season, as

President:

follows:

A1

King,

Surprise,

Olson, Surprise & Co.
Vice-President:
Stone &

James S.

Pence,

Webster Securities Corp.

Secretary

&

Treasurer:

Paul

Kent, The Paul Kent Company.
Board

of

Directors:

Paul

E.

Conrads, Conrads & Co.; Dudley
M. Hallberg, Boyd J. Easton Inc.;
John D.
L'Hommedieu, A. G.
Becker & Co., Incorporated.

Gross to Admit
Gross

&

Company,

400

Park

Avenue, New York City, members
of the New York Stock
on

Exchange,

May 1st will admit Jeanne G.

Unterweiser

ship.

-

>

limited

to
:

partner¬
i..

.u

•

Number 5842

Volume 189

.

The Commercial and Financial Chronicle

.

.

Continued

S. Rogers

Named
By Midwest Exch.
111.

CHICAGO,

want,

page

^

that

Rogers Jr. has been named oificial
candidate for Chairman of the
Board of Governors of the Mid¬

production, and that the problem for that day
redistribute wealth

and income.

We

now

on was to
hear no more

about economic

C ommittee.

maturity—on the contrary the need for
growth has become a fetish—but it is still a
cardinal principle of the New Deal and all its successors
and imitators that those who through their energy, initia¬
tive and resourcefulness are responsible for economic
growth shall be required to provide in substantial part for
all those who prefer to leave their welfare to a paternal¬
istic government or to monopolistic organizations of their

Nomination to

come

economic

Exchange, it
has

been

an-

nounced

by
George F.

Noyes, Chair¬
N

the

of

man

ruinating

o

I

post is tanta- • j
mount to elec-

tion.

;

-

Ball

will

oting

take

place Monday,
June 1.

Rogers, Jr.

Sampson

Mr.

C.
Allyn, senior partner of A. C. Allyn
& .Co.; who has served the past
Rogers

will

Arthur

succeed

J

two years.

Mr. Rogers, active in. the securi¬
ties business since 1930, has served
floor, broker,

as

investment banker

and investment dealer.

to

1935,

on

the

From 1930

he was a floor broker
Chicago Stock Exchange,

predecessor to Midwest. For the
past 24 years, he has been a part¬
of

ner

MpMastCr, Hutchinson

.J.'r:

Co.

is

He

tive

&

'
member of the

a

Committee

States Group,

Association.

the

of

Execu¬

Central

Investment Bankers

He is

a

former Presi¬

dent of the Bond Club of Chicago.
Hunter Breckenridge, President
of

McCourtney-Breckenridge &

Co., St. Louis, has been nominated

Vice-chairman of the Board of

as

Governors.

nominees

New

the

to

board

from Chicago,

each to serve three
years, are Harry A. Baum, partner
of Wayne Hummer & Co.; David
J. Harris, partner of Bache & Co.,
Louis J.

and

Stirling, partner of

Betts, Borland & Co.
Other newcomers are Harold L.

Emerson, President of H. L. Emer¬
& Co., Inc., Cleveland; Joseph
Glynn, Jr., President of Blewer,

son

A.

Glynn & Co., St. Louis, and Rob¬
ert W. Haack, partner of Robert
W. Baird & Co., Milwaukee.
_

Renominated to new three-year
terms

are

Scott Davis, partner

of

Davis & Co., Chicago,
XL
Peterson, Vice-

Ralph W.

Jamas

and

<5f vL

President

Dain

M.

&

Co.,

Inc., Minneapolis.
;
Lyman Barr, partner of Ralph
W.
Davis
&
Co., Chicago, was
of

the

1960

Governors of the Midwest

Chairman

named

At Public Expense

foresight

management has

or

long been the outspoken doctrine of the re¬
formers and the do-gooders that the less fortunate shall
be given all sorts of things at public expense and the cost
of it all be levied through progressive income taxation
upon those who produce in abundance. The elements
which

One of the most

outstanding cases of all, this is, of
the farmer. The Federal Government with the

course,

charity, but rather as one who has been placed in a peril¬
ous position if not by his stars then at least by some force
beyond his control. And the fact that this is true is the
most distressing aspect of this distressing mess.
So also with the unemployed and the aging. Of course,
there are instances where one is without work through
no fault of his own, but such is not the case in nearly the
numbers that we are constantly being told is the case.
As things now stand, there is not the slightest tendency
among the unemployed to imagine that their ill fortune
could in any way have been avoided by foresight and
initiative on their own part. On the contrary, the fault is
found in their stars, so to speak, and relief is expected as
a matter of right from a friendly government
which in
turn takes it from those who had more

initiative and

more

energy.

No

one

foresight and

will

ever

more

know. prob-

infrequently through tactics which should bring shame to
the cheeks of all good

Bache Adds to Staff
('Special to The Financial Chronicle)

Thomas G.
Chapman is now affiliated with
Bache & Co., 130 South Salisbury
RALEIGH,

C.

N.

—

N.

WILSON,
Cantwell

C. —Bradford C.
affiliated with

now

Lynch, Pierce, Fenner &

Merrill
Smith

is

Incorporated,

119

West

Nash Street.

was

not, and

large part for an enforced retirement

which takes out of active

as

system

production literally millions of

who could continue to

tively
ful

produce, if not quite

as

effec¬

in their heyday, at least in significant and help¬

proportions. It is a part of the "share-the-work" idea

—the idea

being to take

a

substantial element of the work¬

ing population out of the way to give the remainder a
chance to

earn a

living. The so-called old

age

and survivors

pension system of the Federal Government has led the
J. K. Mullen Co. Adds
(Special to The Financial Chronicle)

DENVER,
Matthews

staff of J.

Colo.

has
K.

—

William B.

been added

to the

Mullen Investment

Co., 621 Seventeenth Street.

H. Hentz Adds

way
even
on

and contributed a great deal to making it possible and
attractive for men still quite able to produce to live

those still at work.

all too many

Cooper

— Robert
S.
added to the
Hentz & Co., 141 West

has

staff of H.
Jackson

been

Blvd.




of

us

Here, too,

we

have been told and

they
some

have

are

/

Company and its subsidiary, Pennsylvania Power

Company,

consolidated basis:

on a

Earnings

per

Common Share

Operating Revenue
Kilowatt-Hours of

.

.

.....

....

Electricity Sold

.

.

.

.

.

3.60

$

137,650,000

.

.

■$

7,323,255,000
651,126

Electric Customers Served

Operating Expenses

...

Provision for Taxes

,

.

.

.

.

$

71,912,000

$

35,162,000

after Preferred Dividends.

$

22,967,000

•Expenditures for Property Additions and
Improvements .
.
.

$

67,677,931

Net Income,

New

,

.

Generating Capacity Added
.

.

Edison and
arc

.

.

.

.

.

.

.

.

.

90,000

.

Pennsylvania Power with 12 other com¬

members of the East Central Nuclear Group, Inc.,

(ECNG), which is engaged in a program of atomic research
and

experimental in¬
A con¬

development. Engineering studies and

vestigation have been under way since March, 1958.
tract was

entered into in February,

1959, between the Atomic

Energy Commission and ECNG and the two

Florida com¬

Nuclear Group
(FWCNG). The contract provides for research and develop¬
ment on a partnership basis with AEC, and the construction
and operation by the Florida companies for a minimum of
five years of a 50,000-kilowatt (electric) prototype of a 200,000kilowatt reactor plant. The prototype is expected to be com¬
panies comprising the Florida West Coast

pleted in 1963.
For

a

L. I.

copy

of the; annual report write

Wells, Secretary of the Company.

Ohio

women

'

which requires this sort of treat¬

ment.
"Decent

-L-'-L--"

highlights from the 1958 annual report of Ohio

arc

Edison

*

believe, that it is the basic nature of

the economic universe

(Special to The Financial Chronicle)

CHICAGO, 111.

Here

Ohio

Enough Work?

early New Deal notion that there

in

y-;'obok>mm
%$

wimM

(kilowatts)

would be, enough work for us all to do is respon¬

sible

men

Lynch

INDUSTRIAL AMERICA

panies

The
neA/er

Strret.

With Merrill

CENTER OF

THE

Americans.

Not

.

do not have what we,

we

dangerous frame of mind.

a

Report from

come near
doing what
long been doing for our agriculturists were
it not for progressive income taxation which leaves the
lower income groups relatively untouched while it takes
much the large part of the income of the really successful
businessman, and, of course, a somewhat less progressive
but nonetheless inequitable system cf corporate income
taxation. Of course, the farmer tells himself—he has longbeen told by others, particularly vote seekers—that there
is something siti generis about his calling, and that his
largesse is really the price we must pay to preserve a
''way of life" (that is, farming) in this country. As a result
of all this, he does not think of himself as a recipient of

Eight Governors, a Chair¬

chosen each year.

want. It is

it is and has

ably, just how much unemployment is now a result of

are

given to the thought that the fault lies in our stars;

best wishes in the world could not

knowledge that unemployment insurance is available—not

Vice-Chairman

generations—have by

perfectly normal. We are far too

as

be taken from these who have.

Stock

and

regard it

rather than in ourselves that

only the in¬
normally receive ordinary charity,
but a great many others who have more votes than eco¬
nomic initiative and who are, of course, quite ready, con¬
trary to the true American spirit, to make it pay the
politicians to see to it that they have abundantly of what
can

to

come

would

Exchange are elected by the 400
to
serve
three-year

members

terms.

tion-—and all too many of the older

to be thus sheltered include not

are

dividuals who

Nominating Committee.

man

,

much

It has

j

•

"nSE" subject to

ordained that > they
must remain
underlings in this respect. A more or less
natural sequel to this type of reasoning is the conclusion
that someone, somewhere owes it to them to see that they
get "decent housing." And so those who have taken the
trouble to look out for themselves are taxed to provide
what the "stars" have deprived others of.
There are, of course,
many other instances of this sort
of thinking and this sort of
program, but little is to be
gained by carrying the list further. The really serious
aspect of it all is the patent fact that the younger genera¬

now

the one-year

29

to believe, for the simple reason

force not under their control and

own.

Stock

west

;

they have

so

some

their

We It
See

As

Sampson

—

from first

(2009)

housing" has become another fetish. Men and
come

to suppose that better housing than

prepared to provide for themselves is theirs by

sort of divine

right. They do not have what they

General

Edison
Offices

•

Akron

Co.

3, Ohio

30

The Commercial and Financial Chronicle

(2010)

Continued

from first

democracy

page

liance

forces.

cost

the

The

living.

of

recognize that economic deis closely linked with
political democracy—freedom of
speech, freedom of worship, and
all the political freedoms which

with in¬
that the
primary economic goals of this
country under conditions of "cold
argument is advanced
creasing frequency

war" with the Soviet must be full

employment and vigorous growth,
and that pursuit of these objec¬
tives will necessarily involve a
further and continuing rise of the
general price level, thereby creat¬
ing a conflict with one of our
basic economic goals — general

to

provide a favorable climate for
frictionally unemployed and
temporarily involuntarily un¬
employed to move promptly to
useful
jobs.
Also
involved
is
whether our system, through such
means
as
unemployment insur¬
the
the

is geared to provide ade¬
quate protection against the hard¬
ships of unemployment—whether
it be frictional or involuntary and
ance,

prolonged in nature.

price stability. Thus, it is argued
America

that

and

ployment
but only

at

full

in

the

value

of

the dollar.
The purpose

of

is to
general
economic goals, and whether they
are
mutually
compatible
and
interdependent, and to set forth
this

discuss

paper

my

issue of

our

personal views.

my own

.

.

.

consider the mean¬
ing of
our,
national
economic
goals. Living under the pressures
of "cold war," we all are inclined
First, let

to

before

everything

must place first

we

tional

us

that

stress

else

our na¬

that

of our
allies. That is, we agree that we
must first of all provide a system
of military security which will do
the job
of protecting the free
world from military or political
security

and

Our

Progress

of

goal—economic

second

growth—means a rising level of
output of goods and services pro¬
duced in this country measured in
terms of

With

stable dollar.

a

of

attainment

these

broad

economic objectives is essential to
a
.successful
national
security
program.
Ewer since the Great Depression
of the

1930s the goal of "full em¬
ployment" has had great appeal in
this country.
The political popu¬
larity of full employment is as
great here as the avoidance of in¬
flation is in a country like Ger¬
many,
for example, which has

learned the bitter experience of a

rise in the general price
What do we mean by "full

runaway

level.

employment?"

In

dynamic free
as ours there will
given time be a

such

This suggests that today, out of
total unemployment
of 5.8% of
the labor force, 4% is more or less
and the remaining 1.8%
people who have been active¬

normal
are

ly

seeking

unable

jobs
find

to

and

have

been

This

them.

latter

group
of involuntarily
unem¬
ployed is a truer measure of our
problem of unemployment, and is
a
just source of public concern.

Unemployment is, of

course,

more

than

an

economic

it is

measure

of human

a

and

indignity

held to

a

which

minimum.

much

statistic;
suffering

should

At

the

be

same

time, however, it should be recog¬
that
the
unemployment
persists today in the face
of business recovery from the re¬
cession of early last year is to be
nized

which

found
and

primarily
industrial

in geographical
pockets
which

the

product of technological
change and stickiness in the mo¬
are

bility of labor. Perhaps a useful
way to view our goal of full em¬
ployment is to ask whether our




the

.?/

essential

remember

to

Th

does

that

eco¬

not

Economic growth has usually

ours.

in

moved

of

because

waves

fundamental

forces

as

,

such
of

bursts

technological improvemen-ts,
major new industries, population

conditions

velop more later,

waves

inevitable

are

in

there

is

dan-

a

in

degree.

avoid

is to

Economic

So much for

and

Goalsy^y,-

dollar is over the longerindispensable for achieveof full employment and eco-

•

nomic

growth.

Moreover,

f^^t.

strive for

war.

a

strive lor staof our unit of

;

j

P.f this discussion

But there is no; )

as

p^nciple, the

may seem

of our
national
economic goals. I would like to turn
now
to consideration of the igreat
debate

current
There

thought.
called

these

main

One

goals,

schools

of

might

be

group

in«

mg.

other

"stable

the

infl itionist<?

WinY.nl

nrimnri/

Thp

The

course of
be difficult but not

P0S1*10"S' The

yiew

must3 be^

short

,

™

of the Soviet

mer-

nnpor-

the question oi whether

cm ployment.

economic

growth, and general price stabilare compatible goals is under-

scored

Ihp

hv

fart

th->+

thp

Tnirit

J/01 ea °y mc tact xnat the Joint
Congressional Committee on the
to JEcoiionjlc Kc-port; urider the chalrr

total

the

de-

miccs.

™o "o,

#

necessary, for '-manship of Senator Paul Douglas,
periods tolerate a model» the begmmng stages of a

economic

v^gorous

restricting

by

Mill

the monetary and fiscal

run

I"!1'
Tuauthorities can stop the wage-cost

nrn

|lce

•

of attainment.; Moreis" contended, eVen in the

over, it

nur-i

nationakeco

primary

goal, in

odd

>:fj?.rf£tldlnt- .^hat are_the

to business concerns. It

action would

dollar

inflationists Pur y
following line ol reason-

the
-

as

impossible

creeping
cieeping

nomic

well

as

school."
The
Ine

vigorous Economic growth? Many,.

"creeping inflationists" is recognized that this

the

the

and

about

two

are

unemployed workers and less than

productivity. What.is meant influ^ntial voices are advocating
here is that the abilityof labor- a/pbhcy of Federal deficit-f inaneand management to push wages la§ and ..rponetary expansion to
and prices up in the inflationary
more strongly,
spiral is the outgrowth of monopeI,s stiess rthe urgen. need for
oly power, and that antitrust laws th£ Federal Government to live
must be applied to labor unions ;Within ita ..means and for mone-

discussion of the.

a

,

labor

meaning

the sharp cyclical up¬

downswings in economic activity—-we desire growth
on a sustainable basis and in re a I
swings

cold

stable

the

pull

markets in which wage increases
are held in iine with3ncreases in

Current Debate Over

a

and even desirable
What is needed

economy

some

of

(XrowttL

ug

the,

that, in
our
eagerness
to
;..j7ljieren£ conflict between the goals
.philosophical and academic,
compete successfully with Soviet
"
'
*
'
*
""
Russia for full employment and
economic growth, ,we may ulti¬
mately move away from economic rvTn^R^'is'contendcd'"there mav be^today ^oVer monetary and fiscal
and political democracy to a SoSQm'e lntompatibmty bccauso of
' '*}
cialist State/
I believe that we
th
wage-price spiral under con- Should the Federal budgetbe balcan compete successfully with Soditions of full employment.
The ah*1# mescal 196$ or should1 the
viet Russia
under political and
S0iuti0n to this short-run conflict, , monetary- authorities be restraineconomic
democracy,
but
there it .g helc| JTlust ne
in'restoring a inS an expansion of the money
are pitfalls which we must avoid;
condition' in the national labor supply in the face pf 4.4 million

sue

free

of

thought ■is, Mere*'

ger

growth, and similar developments.
These

of

sciiool"—at

dollar

''stable

of

employment and economic growth
the other extreme-stakes, a posi- patter
of JnoraL
successfully as Soviet Russia Uon al
thfi
f(?Uowjng ;lineS.yGovernment must
under a dictatorship and a gamcertainly the country Thust,; under
A# the y alue
son economy.
Or, as I shall de-

re¬

always
proceed entirely smoothly in a
dynamic free economy such as
activity

conclusion

f0fe, that preservation of the value

,

Stable Dollar Position

of full

goals

The

.

as

important in the com¬
petition with Soviet Russia—it is

H may

.

capacity

our

duce

goods

as

nation to pn
services vital-

a

and

defense/

national

The

fvx

need

.

vigorous and sustained growth
quires that our laborforce
fully employed — waste of
of cold wdr.

mate

.

•

.

-

V

be^Jf

i:»*.

iSl/Junni»>

f..nJ

,c

*

t

v'c- :

r !■■

.

considering this question of

•

rec0^nlzant ol the^uman iosscs of the compatability ofour economic
inlthfe.%i^:^nemployment.V|ud realizes that; goals, it would be helpful fo re-

intolerable

is

sources

-

•

However^
nent con-

tive

T
]

bar-

|A1
thought goes oi^^, argue that re- ture of the. process,
exorably
gardless of the apparent, shorUrunyy'What arc the sources of ccoof constant purchasing power.
push
as
wages
are
driven
up incompatibility^of
lull employ- nomic growth? In.a free society
Turning now to the general eco¬ faster than labor productivity in- ment and . v i g o r o_b.s.. ecoitomic .such as oiirs, the.
well-spring of
nomic objective of stability in the creases. The
resultj thcn^ must bn ^^^.^ ^tb "^
s'tnbil- grqWtli i5 (he yoluntary saviiig of
general price level, this goal calls a rise in flie gehWra^vd«0e^e\^
tional output of goods and

serv¬
ices measured in terms of dollars

for

public

and

private

of

prices

reasonably stable
basis. It is essential to recognize
that this goal includes the idea
on

products

down

in

mand

and

prices of indi¬

to

response

supply

move

to

up

market

forces.

It

or

de¬

also

admits and approves

organized

The

this

of explanation
major economic
goal — preservation of economic
and political democracy. One way
to

word

a

the

our

national

objectives would be
ward

vouId act determinedly to restrict
hv conqumcn? ^ hnsi

Government-^ Th"s

the

and

could

and

That
mat

Federal

1*
u,

Argument
argument

the
tne

surpluses

budget

holds thfe
noias. in

cost push.

Such

to

of

it

is

of

unemploy-

further contended by

to¬

and

po¬

Economic

vigorous

ful

choice.

economic

growth..

We

must

choose

be-

on how
to spend
disposable income; freedom
to work in the jobs of their own
choice; freedom to control their

of
does

other similar

economic
not

wll,! 1.lo,u.1,!®h

econ?mic

onjy under conoi.tions of stability

T*3 such a.s

e«01?™ent-

a •'

•

makes possible
greater productive capacity and
> saving

resultant

greater

national

a

a

output

wiifbe unwUiiiv/tolave doT-

lars

of

high
to be

paid

reduced

pur-

comparatively

chasing

power

back

doUars

in

only
of

power.

r

.

pur-

.

As 1 shaS review presently,
•

cavin^today

are

^throug^fnstitu1

r1Gns"

,:Uchy.as mutufl iavin^

banks

^savinss

ajid'Toar

Sons
funds ard
in"
Scfte p^I

;

life

pens on

-y:

•

+l

freedom.

license,
only be exercised with¬
in
the ground-rules set by the
State in a democratic society.
Generally speaking, economic
mean

our'people

Once

start to expect

galloping
price

time

stability

but

excessive

al^ " 0vWe' aTimwrtknt1
.

nar

ot the financing of

the

at

unemploy-

under
--

--—

employment and vigorous growtn,

lniianon.

xnis

win

ue-

mpnt<5

"

str0y the will to save and hence
choke economic growth at its very
source,

individuals

property; and

tvaiS

a"d

"fnT

de¬

their

Freedom

up our productive ca-

hfifc^Tsavc ^fpltaI

t,asic objective chasing

of

mocracy means freedom of choice

aspects

labor,force and other resources

economic
move

economic

democracy.

bume pari oi

-our

a"d to make them i^dsavaUable Thus,

thev

degree

a

the creeping inflationists, seriously
conflicts with the

era!

can

^

sr sra rsrt

same

for it

-

.

ind.iV

reai capital. gop;|3,:^uch as. indus,r-.

do

bv

framework

own

,

^ ^pending all of

stihtion of the quantity of money

political dictatorship like
Soviet Russia.
This paih would,
be
repugnant to the American
people. We must think of achiev¬
ing our economic goals within the

by

.

?rial pla1^ and^Pment.,But, it in building

a

litical

.

,

':wirttnUeW that?

argument;

fourth

achieve

.

Jab^ir groups willy inproduce the wage-cost

general

ment,
Economic and Political Democracy

Lastly,

powerful ;

of

menrMnc

of these forces.

about

strength

a

of freedom for the

vidual

gaining

measures

designed to keep the general level

a

■»

time is whether under

achieve

can

we

that

assures

Sb funs the argument of the
creeping inflationists.

vital ques-

A

other things,

among

pace.

economic and political democracy

so

the idea of a
general price decline in response
always at any
to
improvements
in
productivecertain amount of "frictioual un¬
employment" — that is,- people- efficiency. The essence of the goal
is the prevention of a persistent
temporarily unemployed and mov¬
rise in the general level of prices
ing from job to job as a normal
part of the mobility of labor in' growing out of inflation of the
our economy.
Studies show that supply of money or an upward
this normal unemployment can be push of wages and other costs at
a
rate in excess of improvements
expected to be about 3 to 4% of
in productive efficiency—or both
our labor force.
economy

sacred

so

our

rob the

inflation/will remain af h creeping dollar' school

,

become

aggression. But with this vital
objective recognized, the view has terms, that is, in terms of greater
been, and still is, widely held output of goods and services and
that there is no inherent reason not
merely in depreciating dollar
why our broad economic objec¬ terms. Over a long period of his¬
tives — full employment, eco¬
tory wb ha ve experienced a growth
nomic
growth, general price of 3-4% in our total national out¬
stability,
and
preservation
of
put in real terms—a commendable
economic and political democracy
record.
Since World War II we
—are out of step. In fact, it has>
have experienced a remarkable
commonly been understood that
growth of 50% in our real na¬
the

tion of

gard to this objective—which has

nomic

Goals

Our Economic

Explains

Instability

em¬

economic growth
the expense of a

decline

further

have

can

hold

we

Thursday, April CO. 1959

.

.

people whose incomes are
relatively fixed — especially our
'creeping inflation"will have to older people living on." pensions
break into a gallop, as many con-/.add the proceeds;of. their life sav-;
tend. Our great national output/; ings.r"
: ' •■■'w'w''

It is, moreover, important

moeracy

is functioning in a way

economy

value of the dollar.; Moreover,
there is no reason to believe that

to

Oar Economic Objectives
—Are They Compatible?
on

primary
recompetitive market

means

upon

.

,

in aaaition to personal saving,

A
co

inflation,

v,«.—

.

.

f10n oi .their earnings and plow
as efforts are made futilely back into their productive exdecline in t' e value of the dollar,
to hold the lid on rising prices. Pansion. Thus, the voluntary savAfter all, the argument
runs; in-.-The ultimate outcome, it is argued, ing •of the American people and
flation is not
so
terribly bad— would be a completelv controlled business- and industry provides
most
American
really
like
it. national economy at the expense the fundamental basis for ecoeven

if

Through
have

it

does

various

learned

adjust to

mean

a

chronic

"escalators" ;we

more

and

more

to

general price rise and
consequently to a decline in the
a

trols

will

multiply

in

our

econ-

or ny

of economic

this,

t h e

stresses

democracy. Added to

stable dollar school
basic dishonesty of a

the

policy of inflation.

Rising prices

nor«ie growth in

our economy,

In addition, there
means

of

growth

in

are

financing
our

system.

two other

economic
One

of

: til

Volume 189

these

is

Number 5842

taxation;.' To

.

the

•

The Commercial and Financial Chronicle

.

.

available/annually

capital ;funds

extent

(2011)

fastest-growing, fields of personal maintain -full employment and
saving. /During a this \ period the i vigorous growth?, .:
pension funds supplied nearly $15
It
is
my
view that full em¬
billion to finance the growth of
ployment, economic growth, and
corporate enterprise in the United general
price stability are vitally
States./,
/:>'//////•• jy ••// interdependent in the
longer run,
T, highways,
Life insurance company funds and that
they serve ", to> build, ^largely ,explainable in terms of
they must be pursued
!
capital goods of a public nature the .sharply changing role of cor.--. are, of course, the savings which as a whole if we are to
preserve
which add to our productive-., ca- pora.tions, ais a source of funds. millions of Americans accumulate our free
economic society. This is

stocks, driving up the prices ot
outstanding stocks without pro¬
viding any real basis for corporate
growth.
That is,
funds which
under a more stable general price
level would have gone into the

of

-'

Federal, state, and loeai i^venues- fromf sayings sources. /The total
b are ^employed - to finance
capital-n^eajiyldpubled from 1947 to 1957;
projects /:(i£-addition >tq~.meefing. rising!:from ^19.4 billion to $37.7
current
operating
expense^. lof billipp..>^Th"ejaggedness
of the
;
Government) such as schools,and movement from year to year is

^
•

,

.

.

financing of new industrial plant
and equipment are shifted to the
stock
market
where
they are

?

"

'

During

pacity and,' hence, contribute; to

the postwar ^period

the

31

each

year
as
life insurance re¬ because a national policy of in¬ largely lost to economic growth
During this period the life flation—even creeping inflation— and are dissipated in the bidding
companies provided $21.0 billion would
up in price of the floating supply
have
destructive
conse¬
r
Savings via!1 "Forced ..Savings"
This" growth not only reflects the/ of residential
mortgage financing, quences for economic growth and of stocks.
v;
The other "means
of financing
growth of national income in real $27.7 billion of funds for, the fi¬ economic and political democracy.
Thus, it seems inevitable to me
economic,
growth .is
What "the., terms^ it' likewise is a product nancing of business and industrial Many of these consequences are that inflation and forced
saving is
economist terms "forced;savings.'^ in part of the postwar inflation
corporations through the purchase already much too apparent as the bound to destroy volutary saving
y
This is the product of aft'iritlar landtheeffeet which inflation has of their bonds, and $1.8 billion of result of the inflation we have and to curb economic growth. It
tionary rise In the general-prifcel.hact*in r^Tg'ing money income. funds for state and local govern¬ already
experienced. What are is, therefore, bound to lead to big¬
these consequences?
v
Ieveh;As
general.priqe.',level •'/.,,The.growlh of savings and loan ment financing
ger and bigger doses of inflation
is
driven
up
as
the result of associations as a channel of saving
These [data]
and forced saving in an effort to
have by no
First, a decline in the value of
monetary inflation, the.dncomesl js .'particularly noteworthy.
.
. •
means presented a complete pic¬
the dollar, as forced saving pro¬ replace the destroyed voluntary
of some of our people cannot keep "Savings— capital funds — have
ture of the flow of savings into
saving.
'
pace with the price, rise.
Thus, been put to great use to finance investments uses in the American ceeds, is bound to injure and
eventually destroy the will of the
Raises Gross Interest Rate
part of the public is forced to residential construction. The figeconomy. I hope, however, that it American
people to save volun¬
.; save, or to reduce their consumpure rose from a net
increase in is a sufficiently broad picture to
A second general consequence
tarily
and
thereby
to
finance
tion; * because their lagging' in- .'residential mortgage debt of $5.7 show how in the period following
inflation
affecting economic
economic growth in all the many of
." comes; do not permit theiirtfrpay; billion ia 1947 to a high of $8.7 World War
II, as throughout our
ways we have just reviewed. Who growth is that when investors ex¬
the higher prices.. This1 is: how,; blllidn. ijfr 1950, ^and
then after country's history, the savings of
would have the desire to save pect a continuing rise in the gen¬
;; ?
thrdugh
deficit financing. / with' &6'md decline, TO* a new high of our people through savings banks,
under
conditions in
which
the eral price level, they demand and
; commercial banks under; co'ndir .$13.4 billidp; in 1955. It amounted savings and loan associations, life
general price level is expected to can obtain a premium in the in¬
:
tions
of
high employment,; the. to; $11.5
billion in / 1958.
The insurance
companies,
uninsured move
upward as a way of life? terest rate charged. That is,, for
Federal
Government
can" force growth Vof
our housing
in this pension funds, and in many direct Who
investors anticipate
would find it attractive to example, if
the private economy to save;..The country has'takelf a major share
ways,
have made
possible the invest in fixed-income obligations a 2% decline in the value of the
/ effect of/Federal financing. With: of. thd* countryV* voluntary saVbuilding of' new industrial plant such as corporate bonds or mort¬ dollar, they tend to demand anthe commercial banks is .just the Tng.
V
'*.
and equipment, new housing, new
gages under such conditions?
If interest payment 2% higher than
same as would
oCcuriftthe gov- ^ prjvaje savings became avail- public improvements, new public inflation became generally antici¬ would be required strictly in terms
ernment printed paper
utilities, and all of the other capi¬
-money,f. so able to.-aid the expansion in propated as being inevitable, people of the current demand for and
11, that
armed With this additional. ductive capacity^ corporate en- tal goods which have increased would be driven to
spending a supply of capital funds. Of course,
Purchasing power the government terprise.//The nek availability of our productive capacity and have
higher proportion of their current expectation of inflation does not
^
resources . awa^. from Riese funds totaled $67 billion in thus made possible our national income before it deteriorated in have such a precise effect, but
/
there is no doubt that it leads to
other uses because it. can afford: the period 1947-1-9^7. The amount economic growth.
value.
Moreover, under the ex¬
to pay the higher prices. It should
a
in
i958 ,was uOti^UiiiiUil*
premium in the interest rate.
XII
It/oQr-' vWciu i $8;®>illion.
IxLl L,
Here,
pectations of inflation—creeping
also be noted that the same ..effect
coursej -is a primary source of
Goods—Locus of Inflation or otherwise—people would have Most students of the capital mar¬
of
forced
saving
occurs
under the country's
Much of the inflationary pres¬
kets are of the opinion that an
ecgfifcomic growth,
the
incentive not only to stop
conditions
of
high
employment diuiig W4W1
sure we have experienced in our
inflation premium already exists
y
oaving,
along with corpojcgle saving.
saving but also to incur debt more
when private individuals or busieconomy V since
the
war
has freely in order to accelerate their today in the interest rate. Con¬
[Regarding] the relationship beness
concerns
resort
to, deficit
originated in the capital goods spending, for inflation robs sequently, a rising general price
^ween capital funds supplied to
financing
with
the
commercial finance, residential-mortgages and sectors. It is impossible to show creditors to the
level causes interest rates to in¬
advantage
of
crease because lenders demand a
the
detailed
banking system.
analysis
in
this debtors.

;• J
•

economic

our

:

growth,

■•Iv.'v/'-

.

.

.

vplume. of nonbank funds has displayed .anC encouraging growth.

;

; serves;

-

,r

-

*

<

.

•

.

•

.

;

-

.

.

.

.4

-

*

.

.

.

*

,

,

•_

4* t*

^

i

1

,

^

.

j

T

»

nf

.,

'

\.—

*

There

;

.

T

•

-V

.

corporate

^
^
two observations that

are

m ;

,

•

securities, it is inter-

but a study of the postwar
capital market makes it clear that
in most
years the
demands for

be

with the exception of 1957,

year,,

it runs counter to Christian ethics/has etxeeeded thq^et increase in

;v

because it is based on a process
in which some parts of our people
—those with, comparatively fixed

*.

premium in the interest rate to
compensate them for the expected

paper,

esting to see that/the net increase
jn residential mortgage debt each

made .at '- this
point about "forced saving/;First,
usefully

can

•

•

•

corporate:securities.-. .//

capital funds have tended to out¬
run
the supply!1 of savings./The

aspirations of the United States
•
Governmental. Financing
/ : to grow—to build more industrial
■f incomes—are robbed to'.the adequipment, to have
Outstanding Federal; debt has plant and
vantage of the State or private been reduced. In<?jjL947 and,1948, more and better housing, to build
more
and bettefr Schools,' t6 aid
individuals .who have a capacity for example, the federal debt was
the economic development of less
to increase their sprending power
reduced in the aggregate by $6.8
■vfortunate countries, and to obtain
'along with inflation. / Secondly," billion, and againy^ 1956-1957 by
!
a
host of other capital goods—
-; "forced saving"' runs into head^ $5.8 billion.
In c^iese years the
r
have tended strongly to exceed
long conflict with voluntary sav- Federal Governm^flt was actually
our
willingness to pay for these
ing. Over sn^. significant period-."saving"- and supplying funds to
projects out of voluntary saving
of
time a risingr general price ? the capital marfeeL However, in
and taxation. The strongest proof
level, the essence of forced sav- the years 1949 arjwji*1951-1955, in;

Hedging With Equities
When

the

general public's ex¬
of inflation grows, the
stock market becomes a refuge
for investors because it provides
a
means for hedging against the
rising general price level.
Un¬
fortunately, as is already becom¬
ing evident today, the increased

pectation

flow of funds into

common

stocks

decline in the value of the dollar.
Interest rates also tend to rise in

period of increase of the gen¬
level because, with the
prices of capital goods rising, the

a

eral price

total

demand

the supply

in

capital

an

inflation

*

ing, is bound to destroy the willingness of the American people
to save on any voluntary basis,

*

elusive,

and in 19§&«borrowed
additional $8 4^jjlion. . . .

is

as

so

earliey,

the

tions

tively

people

cheap

an

state

compara-

save

dollars

dear
in

be-

ipondi-

under- inflationary

Oause

back

noted

and are paid
I intend to

ones.

presently to this idea, but
I would like now to review briefly
of

record

the
riod

economic

Economic
the

T

/'Savings

.

t

include

companies,

panies

savings

mutual

associations, mutual sav-

for these institutions rose sharply
from $7.5 billion in 1950 to. $15>5

; billion

r

,;

stood

L

jmn

at

S17.9 billion.
was

$21.6*

when it

The figure

billion.^ It,;;

noted that all

be

should

1957

of these

of funds are on
a
net basis—that
is, they show
the net flow of funds available
and do not include funds obtained

figures

1

on sources

mortgage

life^#isurance

$21.0
b^on;
savings ha^ks

com-

the
bilcon-

bilffijp. These four
thU§^%ccounted for

$12.0

institutions

-

i!etr$^ount of $32.2

and
$15.4
The commenoial banks

tributed

moderate

with

off until

1958.

in

1954,

in

tapering

reside^ial

to

financing; the

,

ings banks, and the time deposits
of commercial banks.
The total

;
.

,

a

billion

Growth, and

Institutions

insurance

and loan

...

bil-

During the pf#?6d
1947-1957,
savings and IdS'n associations

contributed

Postwar Period
„

life

$6.8

the

Saving,

.

increaser^as

amount

Ron

World

of

In 1988 the

billion.

net

0i

II.

Inflation in
/

1947.1957 state anifelocal debt rose
$35 7

in the pe-

end

the

since

War

saving,

and'inflation

growth,

loejfcte governments

and

[ilave steadily usedacapital funds]
[0 finance schoolSj/raroads, bridges,
ancj fbe like.
During the period

return
*

net

lion,

'

This

Fedtad Government

the

net borrows## of $28.4 bil-

a

was

$80 6 billion, or
86%, of the
total
increase ip^pesidential fi-

nancing
remainder

in

thfaa® period.

The

aggiounted for by
pension
funds,
the

was

corporate

Government,

anda^ndividuals.

fbe net uses of^nds in selected

investments

of

e&iutual

and local government

corporate penfunds, fire and casualty in-

banks sold Government securities
to make even greater amounts of

"Other

elude

Nonbank

state

in-

Sources"

Continued

on

sion

'surance
U.
-

'

-

:/

S.

companies,

Government

corporajtions,
funds such

as

and Survivors' Insurance Fund, and all other nonbank sources of funds, the latter
the

Old

Age

.

.

.

funds available fo*» mortgage and




and
.

.

rise

of

period.

■

To

considerable

a

degree

our

SUNDSTRAND CORPORATION

capital goods expansion since the
war
has
been
the
product of
"forced

savings." That is, through

public and private deficit
financing
with the
commercial
both

banks, which has resulted in a
corresponding increase in the sup¬

of

ply

money,

the

gap

between

the demand for capital funds and
the

supply

of voluntary savings

has been filled by an

inflationary

expansion of the effective money
supply. The housing field, where
prices
have
risen
much more
sharply than most other prices, is
a
particularly good example of
how much of the inflation and
decline in the value of the dollar

capital goods
fields. The inflationary demands
in
the
capital goods industries
have, in turn, provided a fertile
climate for the cost-push type of
has originated in the

inflationary pressures.

During recent
the

years

the

company

has diversified to

point where the words "Machine Tool" in the

name

do not

properly reflect over-all operations.

our

annual

meeting April 28

approved

a name

change to Sundstrand Corporation.

At

our

stockholders

SUNDSTRAND CORPORATION
Rockford, Illinois

Consequences of Inflation

Against the background of the
foregoing discussion of the process
of
economic
growth
and
the
record of growth in the postwar
United States, I would like now
to return to the basic question
Should
ment

Common stock listed on New York

Stock Exchange and Midwest

Copies

of our 1958 Annual Report

request. Address Sundstrand,

Stock Exchange

are

available

the goals of full employ¬
economic
growth be

and

pursued as a matter of public
.
. .
.-Corporate penSton • funds are policy without regard to whether
uninsured pensidh" funds being such a course of action leads to a
accumulated
foi^employees of rise in the general price level?
Can

in

we

the

afford to regard stability
value

of

the

second-class objective
be

abandoned

in

dollar

as

a

which must

our

efforts

to

Missile

Aircraft Components

Machine Tools

upon

Rockford, Illinois.

corporate financing.

business corporations such as the
Bell Telephone; STystem, General
[There has been] a general ris- Electric, U. S. Steel, and other
ing trend in the total supply of-corporations. This' is one of the

being in the main individuals
unincorporated
business.
.

Now it's

has been the persistent
interest rates during the

of saving

banks,

"

funds, .-uninsured

tendency ofj the demand
to outrun the supply

capital

savings

1947-1957,. show how the
e accumulated
savings of the pec
ks have gone
through savings l
into residential ~
rtgage financinancing.
ing and corpor
iod the savings
Throughout this

through refinancing.

this

of

for

are

a

"

-

funds

of savings. Thus, higher

interest rates in

churning of
transactions in the existing supply
largely results

for

tends chronically to run ahead of

Components

page

32

32

The Commercial and Financial Chronicle

(2012)

lead

Continued from page

31

more

and

the

free

noted

market.

Objectives
—Aie They Compatible?
of market

inevitable outcome

.an

forces.

°

Rising interest rates in a period
of inflation exert a number of ef¬
fects which have a bearing upon

vigorous economic growth.
For
one, they lead to an increasing in¬
terest charge on our huge national
debt, which makes it that much
difficult

more

Government

Federal

the

for

deficit

avoid

to

fi¬

Another is that as inter¬
est rates rise, the prices of bonds
automatically fall. Investors in¬
terested in long-term capital gains
are thereby turned away from the
bond market to the stock market
under inflationary
conditions,
thereby lessening the availability
of funds for the purchase of cor¬
nancing.

Government bonds.
practical difficulty

and

porate
Still

another

of rising interest rates in a period
of inflation is that certain inter¬
est rates

are fixed by statute, the
important of which are the

most
rates

long-term

on

bonds and

on

Government

Government-insured

it

takes

time for a. restric¬

more

credit policy
real biting effect. More¬

tive Federal Reserve
to have

a

over, the frequent Treasury trips
to the market to refinance shortterm

effective

money
serve

control

persistent rise of the general price
level makes
the sale of U. S
saviiigs bonds more difficult and
tends to accentuate the redemp¬

This
is
a
highly important problem
because there are over $40 billion
present time, payable on demand
by the U. S. Treasury.
These

bonds

presently.

So far

ernment-insured

mortgages

and

Gov¬

as

guaranteed

concerned,
the
problem is as follows: As market
interest
rates
are
inexorably
forced up in an inflation, the
fixed and relatively low rates
of FHA and VA mortgages lead to
are

'© reduction in the flow
into

of funds

these

mortgages because of
the comparatively low fixed rates.
The Congressional reaction to this
{situation has always been to seek
to maintain the low fixed rates on

Government-insured and guaran¬
teed mortgages by pouring newlycreated money

into the residential
market through direct

mortgage

Government loans and the Federal
National Mortgage Association.
JBut

this is

merely

solution because it

no

accentuates

inflationary

forces and exerts greater upward,
pressure on market interest rates.

Accordingly, rising interest rates
ore

inevitable

an

growth
omy.

in

out¬

our

econ¬

As interest rates rise, they

bound

ere

market

of inflation
to

spending of
dustrial

the

cut

investment

business and in¬

some

and

concerns

thus

exert

drag on economic growth. Ris¬
ing interest rates are in particular
a

bound to act as a deterrent to the
expansion of social capital goods
euch
as
schools, highways, and
similar projects. This is
especially
true because statutory limits exist
the interest

on

and

local

rates which

government

State

units

pay.

.

can

■

..

;

A
a

third

expectation
rising

inflation.

The

most thoughtful stu¬
policy think it is

why

dents

budget

another
for

inflation
that if

of
growth is

economic

continuing inflation should
a way
of life, everyone

become
would

hedge

and

his

redouble

Escalation
tracts

efforts

against

protect

to

it.

in

clauses

labor

con¬

designed to keep wages in

stride with the increasing cost of

living would be bound to spread
throughout the economy. Through
other

measures

such

increased

as

stock

purchases, variable
annuities, purchasing power
bonds,
and
in
countless
other
ways
the American people and
common

rising prices. Regardless of

how

much

escalation

elements

some

of

did

occur,

society

our

would be unprotected and would
suffer
because
their
incomes
would

be

comparatively

fixed.

However, to whatever extent a
stimulating effect of a rising gen¬
eral

price

fact that

level

some

from

comes

elements of

the

society

able to benefit at the expense

are

others,

of life and means are found
by many to ride along with it.

general

Under these

encountered in Federal

inflattion

would

produce

stimulating effect. This

financing.

the

general price level, in¬
vestors'are bound to become less
less
willing
to
purchase

and

Government bonds because of the
fixed-income nature of such se¬

interest

difficulties

great
rates

statutory rate
ernment

on

bonds,

to

guard against

history of almost

long-term Gov¬
fixed

at

to

continuing rise

a

of

the

required

the

important reasons
why "creeping inflation" is bound
to break out into "galloping infla¬
tion" as the public becomes more
and more impressed by the need
one

market

above

now

of

be

become

when

rise

is

a

the

general

the world

4j/4%. Under these circumstances
investors shift to the
purchase of
bonds bearing interest rates in¬

ruinous

cluding

level.

but

as a

modest

creeping

proceeded

it

reason

an

tbey shift

inflation premium—or

even more

into

common

stocks.

Thus, the Government is
compelled to rely upon short-term
financing, much of which finds its
way into the commercial
banks,
which

create'

chasing it.
ernment

new

The

money in pur¬

short-term

securities

which

Gov¬

do

not

lodge in the banks become highlv
liquid assets in the hands of cor¬
porations and thus render the task




sooner

or

celerating

later

moved

pace

into

inflation.

at

an

ac¬

galloping

There

is

no

that I can see why creep¬
ing inflation would not follow the

same

course

in the United States.

where

over

Multiplicity Controls

be

are

a

trols, they
and

become

freedom

of

labor

could

to bargain
intact?
I

remain

inevitable that

seems

would

wages

bound to multiply
more
pervasive.

circumstances

these

Under
the

are

brought

be

under

control, and this would ultimately
restrict the freedom of the worker
to select his

These

job.

own

just

are

the ways

some of

in which direct Government
would

If

there

is

that

the

Hitler

out

I and

used

spring

can

us

seek full employment
economic growth with¬

we

and strong
out

for

seriously.
true, however, if as

come

nation

a

hard

regard

to

in

stability

the

value of the dollar.

2

page

1%.

of

remember

of

economy

of

the

ruinous

inflationary meth¬

by the Nazis to finance

their military expansion.
Simi¬
larly, the Soviet controlled econ¬
omy had its origins in a runious

inflation
War
in

I

in

Russia
has

and

small

no

after

been

World

continued

by the infla¬
tionary methods which the Soviet
measure

has

used

and

economic growth,

finance

to

America

its

military

remain

must

strong

to protect herself and her allies
against the threat of Soviet tyr¬

This

anny.

means

that

must

we

maintain high employment of our
and maintain vigorous
growth. But, we must
way to do
this within

resources

economic
find

the

the

limits

of general
price sta¬
bility, for continued inflation will

destroy the
cal

and

which

very system

economic

we

are

of politi¬

democracy

anxious to pre¬

so

world's

of

socialism

it

though

as

might

develop here through
a
process of
ideological salesman¬
ship by the Communists. Actu¬
ally,
socialism
is
much
more
likely to become established in

full

employment
growth.

and

4%

For

pur¬

90%

to

of the

low-cost

of

As is the

Co^

with the

case

exploitation of these

The corporation's

pioneering re¬
search iii the application of Ferro
Columbium to the production of
large volume steels, such as are
used in pipeline steel, gas cyl¬
inders, truck bodies and heavy
duty machinery, and plate steel
has paid off in important applica¬
tions and "know-how."

breakthrough

with

came

Steel's dramatic

Lakes

called

GLX-W

steels.

an¬

A

brand

large volume use, had un¬
questionably been developed for

new,

Columbium.

produce a new series of
which are up to 50%

now

steels

stronger, easier to work, and su¬
perior in weldability. These all
spell out a great competitive ad¬
vantage for Great Lakes Steel. /
My investigations of the steel
industry indicate that the response

ent

uses

of

Ferro

Columbium

in

steel

of

steels by one

future

this

of

country.

It

price

stability

dependent
that

they
if

are

must
we

orous

full

to
of

a

to

inter¬

pursued

society.

the

We

our

to

as

can¬

a

be

a

our

stability

dollar

objective

and
as

preserve

regard

an

sec¬

easily

efforts to main¬

employment

economic

because

be

are

economic

ond-class

vitally

in the longer-run

and

growth.

national

policy

vig¬

This
of

is

in¬

since

Kennecott

the

-Because

the

on

1936.

until
definite

up

company

has not released any

now

statistics

of

extent

the

molybdenum ore reserves in their
wholly owned property at Questa,
N. Mex., there have been few at¬
tempts to evaluate the significance
of this ore body. But now, after
more
than? two years of under¬

drifting and drilling, the
is willing to reveal that
major
molybdenum mineralized area of
great value. Their work to date
has
substantiated this estimate,
and indications are that they have
at least 200 million tons of molyb¬
denum ore at Questa, N. Mex. It
is
significant that during 1958
ground

company

also
in
1959, Molybdenum
Corporation has continued to ac¬
quire additional claims in the
Questa area and is believed to
now own substantially all the val¬
uable properties in this area.
I

have

to

reason

that

believe

this

will prove to be one of

molybdenum ,
world. %
To

the largest
orebodies in the

steel

industry to follow suit.
Potential

that

to

Great

half

about

support
Lakes

our

is

estimate

Steel

can

use

a

has

There

Earnings:

million pounds annually of
Ferro Columbium.
This company

of

3%

the

The

market.

figure it

be

can

steel

industry alone could

than

16

million

pounds

Ferro Columbium annually.

of

is

The 'stock

currently

the 45 level.

around

selling

•;

use

of

evaluation

of

the

of Columbium

Molybdenum

V

Tak¬

worth

Molybdenum Corporation's

serves

the

preferred stock.? There are 1,570,950 shares of common outstanding
along with 170,000 warrants en¬
titling the purchase of one share
of common
(through October,
1963) at a price of $29.70 a share.

American

this

on

estimated that the Ameri¬

can

more

From

listed

Corporation,

N. Y. S. E., has no funded debt or

t

steel

sum

denum

major steel producer

would force the rest of the

market's

the

is my view that full
employment,
economic
growth,
and
general

from

ores

able, both financially and techno¬
logically, to reap the benefits. r

every

to

concerning

has been buying its molybdenum

several months ago, that adoption
the use of Ferro Columbium

vigorous that substantially
major steel producer is now
running tests on some 160 differ¬

so

conclusion, the public debate
our national economic
objectives is of great importance

Conclusions

Althdugh>.Molybdenum^ Corpo¬
ration is the second largest Amer¬
ican processor of molybdenum, it

making. These developments
substantiate our theory, as slated

to the new GLX-W steels has been

vative

hi

approximately 48 million pounds
anniially.
' '•

up the case for Molyb¬
Corporation as an out¬
standing growth situation, I be¬
lieve
this
company
is in the
unique position of having not one
but
three
major-new areas of
growth about to reach fruition
simultaneously, within the next
18
months, and of being fully

ing what we consider the conser¬
figure
of a
12
million
pound annual market, I have esti¬
mated Molybdenum Corporation's
earnings
conservatively
at
ap¬
proximately $2 per share.
Again we can only guess at the

economic

at present can produce,
domestically,
about
42
million
pounds annually of molybdenum
out of a total world production of

and

By adding approximately a half
pound of Ferro Columbium per
ton of steel, Great Lakes Steel
can

Kennecott and American Metal

Climax

their Questa ore body is a

nouncement^ in October, 1958, of
an
entirely new line of steels,

this

promote

of

deposits requires development of
large new markets.

,

country as the result of fol¬
lowing an inflationary policy to

75%

supply

evidence
We have often talked about the

be

Rare Earths,

serve.

threat

approximately

Columbium.

lumbium.

The

the

been

tons

Together
Molybdenum
partners own what is esti¬

to

Great

about

has

that

million

145

at

Ferro

of

all-

Germany after World
the

tain

to

It

is

It

prophecy

Security I Like Best

yielding

ore

proceeded.

is well to

controlled

grew

con¬

become

doubt

any

inflation in
War

and

inflation

as

prospect, it

ods

inevitably

inflation

mately to place serious curbs
is ' bound

estimated

actions. This is why, as we go the
route of direct Government con¬

abandoned in

inflation

from

America

South

in

mated

of Government controls and ulti¬

example,

The

what terms.

on

with its

value

on

Continued

breakout of "black market" trans¬

free

For

of

Columbium deposits is four-tenths

the

economy.

economy

not effective

afford

market

There

economic

r

poses of comparison, the average
yield in American and Canadian

not

free

to

The only way in a free
that we can increase the
growth is by a greater

growth.
pace

business.

and

shortcuts

no

Moreover,
continuing
infla¬
tionary measures will ultimately
lead to the ineffective but politi¬
cally
popular spread
of
djrect
government controls over whole¬
sale
and
retail
prices.
As we
learned so well during World War

final,. and
most
unhappy
consequence of inflation, is that it
is bound to breed a multiplicity

our

are

take

controls

capital funds can

employed and

whole
A

people

can

network

Government

every

it

as

Raymond

so
conclusively,
growth
of
the

this

The

inflation
has experienced is that

it started out

inflation

price

and

show

economic

the

state!"

way

.With .recurring Federal
budgetary
'deficits and continued* increase

especially

direct

of

business would seek to ride along
with

Kuznets

months
ago
Senator
Humphrey reported that
Nikita Khrushchev, in discussing
the inevitable world-wide growth
of Communism, predicted: "Your
grandchildren will live under a
to

inflation

accentuate

will

pervasive

price level lies in the difficulties

curities., The

which

trols

consequence

authoritative studies by

Simon

Goldsmith

honest, stable dollar.

Several

Hubert

Government,
only be policies

but also the spread of a

from

Would Escalate

circumstances, it is
highly likely that bigger doses of

in

the result will not

of fiscal

urgent that the Federal
be brought under control.

As the

of

an

rates is restricted by

doubt it. It

then,

moral

lead us down the path
bankruptcy.

moreover,

socialist

f>ath. Since interest rates are
prices of borrowed funds, if
the
free
movement
of
interest

into inflationary debt
management
and
into
further
deficit
financing
in
a
vicious
circle.
There
is
little
wonder,
Treasury

for

consequences

our democratic sys¬
government.
It would,

of

of
saving and investment
spending.
This means establish¬
ing a more favorable climate for
saving. The place to start is with
rate

United States has been made pos¬

this

collectively

the stimulus will be
weakened as inflation becomes a

important consequence

continuing rise in the

to pro¬

general price level, by driving up
interest rates, forces the

of

Impairs Federal Financing

of

much

have

and

growth
tem

longer-run

sible by the saving of the Ameri¬

stopping inflation because of

do

the

Thursday, April 30, 1959

.

and

the

market

Still

of

in

Federal deficits

in

would

destructive

.

mort¬

lending

purchases

attaches such great

U. S. Treasury

Escalation

through

these controls

importance to balancing the Fed¬
eral budget in a highly prosperous
economy such as today. Continued

more

by

state and local bonds.
already started
down

and

have

We

met

rates

Government

Government
gages

be

efforts to hold

further legislative
down
the rise of

flation—ever creeping inflation—

interest

an

soon

II

reasons

of

Government

that

would

why the

the

are

interest

on

the

at

outstanding

E-bonds

of

bonds.

of outstanding

tions

mote inflation and the

rate

the

of

supply by the Federal Re¬
authorities. In addition, a

guaranteed mortgages. I shall
consider the problem of the fixed
end

wise

debt seriously hamper

and

rise

direct

high,

liquidity

indicate

enced

rate

spending in the economy.

corporate

earlier, rising
an
inevitable

are

under infla¬
tionary conditions. Political re¬
actions we have already experi¬

monetary authorities more
difficult in controlling the volume
With

rates

capital

market phenomenon

of the

of

As

interest

Our Economic

direct

more

over

to

controls

.

the

now

&

York

New

associated with the firm as

Two With*

Gallagher-Roach

(Special to The Financial Chronicle)

COLUMBUS,

is an important metal for
alloying with other metals to give
them greater toughness and heat
denum

Bernard
are now

Ohio

—

John

A,

F. Rausch
with Gallagher-Roach and
and

Eugene

Company, 16 East Broad Street.

resistance. The announcement this

by the U. S. Bureau of
Mines, which made front page
news, that they had succeeded in
casting pure molybdenum for the
first time, underlines the growing
importance of this metal in the
"age of alloys."
i

a

representative in the
islew York office, 120 Broadway.
registered

re¬

Molyb¬

of

Co.,. members

Stock? Exchange,
Ostrov is

that Joshua

announced

ore.

Division:

With Josephthal & Co.
Josephthal

F. J. Mitchell

January

NEWPORT

Francis
a

at

J.

Mitchell

securities
300

was

West

Opens

BEACH,

Calif.—

is conducting

business from offices
Coast

Highway.

He

formerly with Dean Witter &
Ryons & Co.

Co. and Lester,

Number 5842

Volume 189

Continued from page

...

-

.

will

ment.

Implications for the Bond Market

I

make

up

cost-push

the

overworked

9

it

leave

your

own

read the article.

you

to

argu¬
you

minds
•

•

policy be designed to pro¬
mote- growth
in total demands
only so fast as our real economy

is perhaps no em¬
pirical regularity among economic
There

grows.

data that is based on so much evi¬

dence for

wide,

so

cumstances

a

range

of cir-

-

the connection be¬

as

substantial

changes in the
stock of money per unit of pro¬
duction and the level of prices.
The Federal Reserve System has
tween

key to' preventing future
lies in two things; one,

encouraging maximum growth in
the ability
of our economy to

flation if

that

we

terest

and,

the

must have in¬

the

because

mistake

evitable inflationary

recent

it would appear
expectation of future in¬
flation accounts for a portion of
the recent weakness in the bond
market as investors shift toward

the

substantial

achieved

Let

turn for just

us

equity-type investments;

kct-',

moment

a

price index.

must

As

our

productive

potential.

about

concerned

whether or not

budget is balanced in the next

than it was in the past

fiscal year

reason is
The economy

The

year.
course.

closer

back

simple,

of

is getting
employment.
yet—I think
would
agree
that

to

full

We have not arrived

of

most

us

nearly 6% of the labor force un¬

farm

support program, uneco¬
regulation of transporta¬

nomic

insist upon.

we

The President

Also, our nation can no longer af¬
ford such wasteful luxuries as our

that

out

about

cerned

in

budget

recently pointed
not be Con¬
balancing
the

should

we

each

should

and every year,
welcome deficits

tion

that

retail

periods, but that we
should push just as ardently for
surpluses in others.
A period
when a budget surplus will be de¬
sirable lies immediately ahead.
I would also argue—and this is
debatable—that we should amend

rates, Federal
support of
price
maintenance,
high
tariffs
and
permissive
policies
toward feather-bedding practices
of
unions.
Government
efforts
should
labor

barriers

more

the

to

efficient

reduce

the flow

of

to
lines, rather than

capital

and

to

designed

be

artificial

less

from

in

Federal

the

its

stock of money

the

through

monetary policy actions.

strong pressures are

now

Yet,

devel¬

is

ment would

periods in our history. I
that this** is not an
It is very closely re¬
lated to the fact that we have a

business

and

the
in

last

one

the Tate

we

of

have

back to 1909.

Prior to every recovery
-

I

recession.

this relation

including

have had a rise

monetary




•

to

was

cut

$11,900,000 from $18,-

New

the

service

quarter results should make very

The elimination

York

Washington

-

in April of

of

the

Cumberland

:

.

,

.

electric

the

in

railroads

posed

a

utility
the

market,
have

East

Yard

will

be

com¬

the

Leeds, Comptroller of

pro¬

rate reduction of 50 cents

policy

period
ahead. It is believed that many of

erating at practical full employ¬
Such a policy
accentuates fluctuations in bond

sumers

opinion, provides considerable
that the basic trend in
rates will follow closely
basic trend in business activ¬

assurance

interest
the

Not each week, or even for
period of a month or two—but
over any period of several months,

ity.
a

it is almost

coal

the

over

NEWARK, N. J. — Thomas J.
appointed Comp¬

Leeds has been

troller of Richard E. Kohn & Co.,,

the utilities

prices over the business cycle.
A flexible monetary policy, in
my

of

Richard E. Kohn Co.

20 Clinton Street, members of the
postponed building up New York Stock Exchange.
of inventories until after April 1
Long experience in the securi¬
when the new rate reduction be¬
ties business precedes Mr. Leeds"
came effective.
Consequently, bi¬ present association. He has been
tuminous
shipments
in
coming Branch manager of Edward A.
weeks are expected to expand in Viner
&
Co.,
Bangor,
Maine^
the Eastern District.
This is true manager of Edward J. Duffy &
also because of the high rate of Co., Assistant Cashier of Carreau
activity in the steel and automo¬ & Co. and fiduciary accountant
tive
industries which means a with Manufacturers' Trust Com¬
good demand for electric power.
pany. The latter three firms arer

ment of resources.

inevitable.

compared the rela¬
in New York City.
The road has shown good con¬
cycle peaks trol over expenses and, if reveand troughs to interest rate peaks
Denschor Realty Trading
and troughs for the period since
for the closer timing and
LONG ISLAND CITY, N. Y.—
1951 and contrasted the results to son
the earlier period running back greater amplitude of fluctuation Denschor Realty & Trading Corp.
is engaging in a securities busi¬
to
1920.
Throughout the period in recent years.
Certainly a flexible money pol¬ ness from offices at 36-20 Thirtieth
there has been a fairly close re¬
icy imposes
an
additional risk Avenue. Dr. Morris Schor is a
lation of the timing between busi¬
burden on bond underwriters as
ness cycle peaks and troughs and
principal of the firm.
well as bond investors, but in my
the interest peaks and lows.
opinion the contribution toward a
Div. Mutual Funds
However,
since 1951
interest
stable
dollar
makes the result
rate highs and lows have more
LOS ANGELES, Calif.—Diver ^
well worth the added risk.
The
nearly coincided with business
Mutual Funds, Ltd., hai*
basic choice is between a stable sified
cycle turning points.
Also, the
been formed with offices at 618
economy and a stable dollar ver¬
amplitude of interest rate fluctua¬
South Spring Street to engage in
tions
over
moderate
business sus a stable interest rate pattern.
Phillip EL
Postwar experience demonstrates a securities business.
cycles is now greater. Monetary
Sperry is a principal of the firm.
we cannot have both.
policy, I think, is part of the reaI

recently

tion between business

Newport News

Shipbuilding and Dry Dock Company

.

Unbilled Balance
and Number of Employees

Quarterly Statement of Billings, Estimated
of Major

Contracts

Three Fiscal Months Ended!

T'L!
■

•

tilings during the

•

prices and particular
I would refer you, if you
like to read further on this

wages.

would

interesting question, to an article
written by Richard Seldon, pub¬
lished
in
the - February,
1959,
"Journal of Political Economy,"
entitled
"Cost-Push versus De¬
mand-Pull Inflation 1955-57."

growth conclusion

is

that

we

have

His
far

$ 30,777,740
6,903,932
,
4,156,391

$ 25,544,876

*••••*$ 41,838,063

$ 33,611,058

•

repairs

v.

•

.

•

•

•

•

•

•

•

•

•

•

•

»

Totals.

•

•

.

Hydraulic turbines and other work

. -

• - ,

At March

Estimated balance of major contracts
of the

period

.

.

.

•

.

The

.

Company reports income

unbilled

»

•

•

•

•

. •

' •

.

$315,753,882

40-hour basis, working
12,823

week of the period

such income for any

balances

30, 1959

from long-term shipbuilding contracts on

24, 1958

;

:

$412,801,144
12,422

the percentage-of-completion basis;

billings on the contracts. Contract billings and estimated
possible adjustments resulting from statutory and contractual provisions.

subject

are

to

By Order of the
1959

At March

period will therefore vary from the

\
April 22,

4,684,979

_3^8L203.

unbilled at the

Equivalent number of employees, on a
during the last

24, 195C

period:

Ship conversions and

close

March

March 30,1050

V-';*

Shipbuilding contracts

-:

;

particular

different type of

traced

deficit

passenger

1958

last year was
traffic and caused some loss of
principal factors in
volume.
The April report also is cutting these losses.
Further sav¬
expected to show improvement ings are anticipated during 1959
over a year ago.:
\
,7; and this should reduce the drain
on the profitable freight business.
This carrier is highly dependent
Further savings are expected from
on
heavy industry—the steel in¬
more
efficient yard
operations.
dustry—and with these operations
indications are that ther
at a high rate currently, second Also,

my

merely affect the symptoms. It is
completely
inconsistent with a
free
enterprise economy to fix

argue

to

to stabilize ex¬

opinion there is no con¬
vincing evidence that direct wage
and price controls would stop in¬
flation. Such controls do not af¬
fect
the
cause
of inflation but
In

earlier

both

maintaining maxi¬

tend

the economy.

accident.

lated

on

pectations of the private sector of

type of policy in 1951, prices have
been more stable than in most

is clearly corre¬
periods of boom

primarily

equally important—it would give
clear direction to responsible gov¬
ernment agencies in their policy
formation and such an amend¬

ployment when inflationary^ pres¬
sures
increase, and" to encourage
monetary growth during reces¬
sions.Since the adoption of this

supply

The
in

one

stabilizing program
include a flexible monetary

Employment Act to include price
stabilization as one objective —
not
the
most
important, * but

doned, we may as well abandon
all hope of preventing substantial
long-run inflation.
Federal Re¬
serve powers in recent years,- as
you know, have been used to re¬
strict credit in times of full erhr

money

months.

of

inflation

effective

an

employment and production.
We do not emphasize price sta¬
bilization.
If
we
amended the

pressures
exist.
If
flexible money policy is aban¬

monetary policy
today than we used to have.
The
rate
of
growth
in-'the

equipment repair program which
will
be
spread
over
coming

000,000 in 1957.

rains and
hampered the movement of
Snows,

territory.

mum

inflationary

would

As traffic increases, it is believed
the road will have a stepped up

maximum

oping in many circles for elimi¬
nating the power of the Federal
Reserve to restrict
credit when
a

order

an

currently has the power to con¬
trol

Employment Act to include
goal of price stabilization as

equally important objective of
government as the current goal of
employment and pro¬
duction. As of now the emphasis

System

Reserve

we

some

the

reverse.

The

most

bad

the

which encourages mone¬ a ton on soft coal to users who
tary ease during recessions and agreed to take specified amounts.
limits
monetary 'i growth during The utility companies continue to
periods when the economy is op¬ grow and should he large con¬

nomic

crease

large

for the quarter

considered

B & O has a
fleet, being al¬
18% of total car ownership.

aged common stock.

good in the face of
unfavorable weather conditions in

and

control

for encouraging eco¬

means

O's report

be

can

come

favorable comparisons.

■

Second,

laggers such as the consumer

than

employed is not full employment.
growth. Certainly achieve¬ Something on the order of 4%
would be practical full employ¬
ment of adequate growth requires
ment. As we get closer and closer
a continued high level of invest¬
to that level, and I think we will
ment and more efficient use of
attain that level in the latter part
our existing resources.
We might
of the year, it is extremely impor¬
well give greater attention to re¬
tant! that we be willing to pay in
vising our tax system to encour¬
taxes for any increased spending
age
investment and
hence in¬
to the

.>>•.>'.'j ;;:V

.

&

expand, much of the gain
brought down to net in¬
benefitting the highly lever¬

nues

It also is pleted later this year. Once traf-'"
An effective anti-inflation pro¬ a larger mover of bituminous coal fic moves through this installation
in volume, it is believed that sav¬
gram would do much to insure the for both industrial purposes and
we start getting inflationary pres¬
long-run health of the bond mar- for the utilities. To meet compe¬ ings could amount to as much
">.■
sures.
Monetary policy must be:
tition from residual fuel oil for $3,000,000 annually.

nomic growth in previous periods
in this country.
During some pe¬
we

years,

that the

consumer

parent relation between the rate
inflation and the rate of eco¬

growth without inflation and dur¬
ing other periods we had substan¬
tial growth with inflation. There
was no apparent consistency,
(b) Preventives

results.

Although our economy has not
suffered substantial inflation in

index moves upward after
business activity is well down,
and it continues level long after

of

riods

B

floods

investors do not recognize the in¬

explained previously, it is
much more
important from an
inflation point of view that we be

ap¬

year.

An

interest rates low only so long as

price

concluded that there was no

recent

high.

quite

"easy

tied to sensitive indicators rather

growth.

are

is

monetary

Yet two
independent and careful
studies
by Bach and Friedman
economic

mum

rates

money" central bank pol¬
icy, similar to our own in the
early postwar period, can keep

practice should
continue.
Cer-;
tainly we have to tie monetary
policy to sensitive action guides.;
One gathers that sometimes in the
past the Federal Reserve used the
consumer price index as a guide
to action.
That was probably a

to achieve maxi¬

are

we

in

long periods of time and in¬

over

growth are being avoided and this

real

Some say

the rate of mon¬

fluctuations

treme

two, limiting growth in the money

supply in accordance with
growth of the economy.

declines in

etary growth preceded the three
worst depressions. At present, ex¬

inflation

and services

a

past 50 years, the three pe¬

lent

control the stock of
through its monetary pol-i
icy actions.
In the main, these
policies since 1951, when the ?'ac~
cord" was achieved, have been of
a stabilizing nature. If the causal
relation is correct—as; rbelieve. it ;

goods

recession

every

riods when we had the most vio¬

money

produce

to

prior

the

the power to

is—the

Baltimore & Ohio

flation and its control?

First, we
Baltimore & Ohio Railroad has
decline
in
monetary
growth. should recognize that if the in¬
started
the
year
off well due
Some say this is accidental.
The vesting public begins to expect
data strongly suggests that the re¬ perpetual inflation, higher inter¬ mainly to a good earnings report
Net in¬
est rates, to compensate for the for the month of March.
lation is a causal one.
come in
that month amounted to
Our present monetary policy is expected loss in purchasing power,
will be demanded.
We can ob¬ $2,185,000 as compared with $1,much superior to what we become
serve
inflation
effects
in
the ; 555,000 in the like 1958 month.
accustomed to prior to 1951. There
economies of many of our South This brought net income for the
arc,
however, probably further
American neighbors, where price first quarter up to $1,260,000 or
improvements that can be made. I
levels
have
risen
substantially up 5.3% over the like period last
think it is not accidental that in
and

tary

-

of in¬

tions for the bond market

taining inflation that management
of the Federal budget and mone¬

to

after
J < -

Implications for the Bond Market
What are some of the implica-

With and Without Inflation

33

(2013)

The Commercial and Financial Chronicle

R. I. FLETCHER,

Board of Directors

Financial Vice President

,>

34

,

The Ccnnmercial and, Financial Chronicle

(2014)

the

1—the Communist May Day—be¬

Law

came

ulated
over

United

the

an

the first Law
In a few weeks, this tribute
advancing idea will be re¬

peated on a far greater scale.

covery

tries

principles

opment of

new

and neutral coun¬

of

As far

as

concerned,
of

international trade

is

imposing structure

an

international

agreements

al¬

More complex and

ready exists.

Eisenhower, you will
said in his State of the For in this area will be deter¬
Message last January: "It mined one of the most burning
is my purpose to intensify efforts issues of our times—whether the
economic development of new na¬
during the coming two years
recall,

Union

on

alike

which
are

we

are

on

wealth

for

is axiomatic that free people do
go to war except in: defense
of freedom. So obviously we welcome this kind of talk from Mr.
Khrushchev.
We welcome a
peaceful/ competition
with
the

sion

still

the threshold

hot

settlement

of

leave

with

us

cases.

of

course,

economic

lationships

many

formi-

ignore

■

with

agreement

an

completely
But

apart from its interpretation.

between nations.

I

believe

this

would, be

a

major

:

vnnu,c

r!LS?tinn

the.:Communist
nations in those cases where they

individuals and

>
.

Communists to determine who can

dable questions,involving our re-

progress toward creating
effective international law

the

of the Court in such

Such provisions will,

real

more

Thursday, April 30, 1959

is the only kind of competition
which the free nations desire. It

grounded.

encouraging signs at

are

disputes between

urgent than trade, as such, is the
area
of international investment.

President

There

least that

tries.

law

freedom

.

(1) that disputes which
to the interpretation

as

and

substantive

.

agreement should; be submitted to the International Court

arise

the

of

rediscovery, in coun¬ of Justice at The Hague; and (2)
new,
of the legal that the nations signing the agreeand
the
respect for ment should be bound by the deci-

or

old

and

war" for the trade and the devel¬

than 20,000 meetings

more

the country on

Day.
to

in

Day

The Bar Association stim¬

may

imagination and public spirit
legal profession and others
who influence public opinion, it
must be accompanied by the dis¬

Submitting East-West Disputes
To the Hague Woild Court
States.

the effect:

of the

Continued from page 14

.

i«

nnt

iinWs'

hkely

j.^Ta^ M

r,,wJ

:^°^1. sldes.v-understei^ the^.rulCT..

Jinibnrtial^
lmpartial ,
worldP
|oviel'

lal.rly enforced _b> ^an

political area,8 step forward in developing.a rule-the
th'at
we
have now come far enough of law for the settlement of polit- ■ mmaec
+
n.
along in the great historic conflict ical disputes between nations and. ;'
between the free nations and the in the direction all free men hope skittles.
Communist bloc to know that ne¬ to pursue. If there is. no provision ately ♦ wish dhaL Mr.
s
Turning

the

to

,

_

„

J^p^c^v

gotiation and discussion alone will for settling
tions, so essential to their growth not
agreement ' means
necessarily resolve the fun-, international
war .
in political self-confidence and
may replace the obsolete rule of
damental issues between us.
This and one nation is acting fn bad skittles
force
in
the affairs of nations. successful self-government,
will has
proved to be the case whether faith, the agreement has'relatiyely
-JStMeasures toward this end will be be
accomplished
peacefully
or
In the* absence
the negotiations took place litle significance.
,^++{r0op^u^ ^
o-imfj
proposed later, including reexam¬ violently, swiftly, or wastefully, in
through the very helpful proc¬ of such a provision an agreement skJ^1®s^lth?ut
Jf;
ination of our relation to the In¬ freedom or in regimentation and
esses
of the United Nations, or* can be flagrantly.
A
ternational Court of Justice."
terror.
at the conference table of foreign nation acting in bad faith when- peaceful
competition,
ever
We must begin by recognizing
it determines it is cop yen-:
v<~
?
aT f r^-the^inaministers, or even at what We now
Time for Initiative is Now
ient to do so.
that
the
task
of
' :
•
- -'r partial .rules. impartially • judged
providing the call the Summit;
• ■
I am now convinced, and in this
necessary capital for investment
What emerges, eventually, from
I reflect the steadfast purpose of
jn under-developed countries is a these
meetings at the conference
the
President, and the whole¬ job too big for mere government
table are agreements.^ W
hearted support of the Secretary
money.
Only private money, pri¬ made a
great !; jriariy: agreements
of State and the Attorney Genvately managed, can do it right in with the;
Soviet;, leaders from the
-eral, that the time has now come many sector^of needed develop¬
time
of
Yalta arid Potsdam.
A
to take the initiative in the direc¬
ment. And private investment re¬
major missing
element; in our t
tion of establishment of the rule
quires a sound and reliable frame¬
agreements with the Soviet lead¬ convinced that it has iperii ancl~*j^entio*r
Of law in the world to replace the
one^str&ih'g. conclusion
work of laws in which to work.
should be given i?er>ous consideraers has been any provision as to;
rule of .force.
that is found in.every page of re-v/
;;
Economic r development, involv¬ how disputes about the
meaning'?; tjon irv the
futile,,.
forded history; "It is ;this:\theady
Under the Charter of the United
ing as it does so many lawyers of the agreements in connection- ;:.;The;Ihterriat^hOLCo.urtjpf
;$us^vahcei£k^
Nations and the Statute of the In¬ and so
many
private investors, with their implementation could tice is not a Western
tinstruipeprk^
ternational Court of Justice, in¬ will tend to
jierfectipn of
spread and promote be decided.
*<-/;
.

to

the end

that

the

rule

of

.

.

law

^

.

hu0iffed<by

the^ they

-

r;'">?*

-

stitutions

for

the

peaceful

com¬

riality,

aj^uIjA.Cd^

more
civilized
legal systems
Looking back at the first Sum-, body under the* United Nations, have all beenf- accompanied
by
posing of differences among na¬ wherever it goes. Already, in its mit
Conference
at
-K,.
Geneva, / for Phnrfpi* nnrl hSIKK<ipri rppnemiyprT
tions and for law-giving exist in
effort to encourage United States
example, we find that it produced:
the international community. Our
private investment abroad, the an agreement, signed by the So--' Union along, w^h
the*other.-sig- "law in place of force.'!"
primary problem today is not the United States government has ne¬
viet leaders, which elevated the natories to
A* ^Thef.barbae
creation of new international in¬
gotiated
treaties
of
commerce hopes of the entire world.
;
♦
c<
bandit are symbols of a civiliza-:/
stitutions, but the fuller and more with 17 nations since 1946, tax
.Sees Soviet Going Alons
It
should be
noted, however,
;.
tion that is either i>rin,»ive. or
fruitful use of the institutions we
conventions with 21 nations, and that the President and the Secre¬
There is no valid reason why
decadent.
As men grow in wisalready possess.
special investment
guaranty tary of State repeatedly warned the Soviets should not be. willing
dom, .they./recognize -that -might-'
; The International Court of Jus¬
agreements under the Mutual Se¬ both before and after the holding of to join with the nations of ihe
does; not make right;; that true/
tice is a case in point. Its relative curity Act with 40 nations. A host the
conference that success could Free World in taking this
step in .liberty is freedom under law; and ;;
lack of judicial business—in its of other special arrangements are be
measured only in deeds.
One the direction of submitting differ- that the arrogance of power is
a*,
12-year history an average of only in effect, such as those under of the announced
encesi with regard
purposes of the
to interpreta- pitiful substitute for justice and
two cases a year have come before which we have helped six nations conference
tion of agreements between na-\
was to test the Soviet
equity.
"
A
'
'..V/;
the tribunal of 15 outstanding in¬ draft better domestic
legislation sincerity by the standard of per¬ tions to a duly established.Hence ■once.; again we say to A
ternational jurists—underlines the relating to foreign investment.
formance.
court
arid thereby. those in the Kremlin who boast
,
/'
; international
Untried potentialities
of
this
What has been done is for the
Ther
Summit"
Conference
has further the day when the rule of of the
superiority of their systemri,.*'
Court.
While it would be foolish most part good but there are sev¬ since been
characterized by some law will become a reality in the; "Let us
compete in peace, and let-/
to suppose that litigation before eral areas where additional action
as
a
failure, but in terms of relations between nations.
;
our course of action be such that
the Court is the answer to all the is called for.
The countries that agreements, as
such, it was a suc¬
And, on our part, as Secretary the choice we offer uncommitted \
world's problems, this method of need economic
development most cess.
:! Dulles said in his speech before
peoples is, not a choice betweenisettling disputes could profitably are too often least likely to have
Let me quote briefly from that the New York*Sthte Bar. Associaprogress ,and
reaction, between,
be employed in a wider
range of the kind of laws, government and agreement: "The head's of
tion 011 Jan. #4?
govern¬
"Thof e" riations high civilization and a return to
cases than is presently done.
climate that will attract invest¬
ment, recognizing their common which do hav&gommoii.standards barbarism, - between the rule
.of
As the President indicated in ment.
The political risks of ex¬
responsibility for the settlement should, by their conduct arid ex- law and the rule of force." : '•
his State of the Union
Message, propriation and inconvertibility of the German question and the ample, advance
t)^e rule of law by
In a context of justice, of. con-;
it is time for the United States
against which ICA presently sells reunification of
Germany, have submitting their.' disputes' to the cern for the millions of men and:
to reexamine its own position with insurance are not the
only politi¬ agreed that the settlement of the International '0®i[irt of
Justice,'or women who yearn for peace, of;
regard to the Court.
Clearly all cal risks that investors fear. Three German question and the reunifi¬ to some othejfegmternational
trijK a constant striving to bring the.
'disputes regarding domestic mat¬ United States government com¬ cation of
Germany by means of bunal upon wfejph they agree."
wealth abounding in this earth to
ters. must remain
permanently missions, as well as numerous free elections shall be carried out
We should he
Within the jurisdiction of our own
^epared to show those who today languish in hun- ;
private
experts,
have
recently in conformity with the national the world by cmr example; that the
ger and want—in such a context,:
courts.
Only matters which are recommended a variety of im¬ interests of the German
people rule of law, eWfr*1h the most try- competition between the Commuessentially international in char¬ provements in our machinery for and the interests
of European Se¬ ing circumstarte^ is the
one'sys- hist world and
the Free World »»
acter should be referred to the
fostering foreign investment.
tern which all free meii of
curity."
good would
indeed
be
meaningful.;
International Court.' But the
In other
words, those who par-" will must support. A': "
Then we could say without hesita- '«
United States reserved the
Fostering Foreign Investment
right
In this connection it should be tion:. let the
ticipated in the Conference,: in¬
stronger system win, <
to determine
I select three for particular en¬
unilaterally whether
cluding Mr. Khrushchev, agreed noted that at the present time in knowing' that both systems would;
the subject matter of a
particular dorsement. Our laws should per¬ at Geneva on. a sound
method for our own codiff?^ our 'system of
be. moving in a direction of a ;
dispute is within the domestic mit the establishment of
Foreign dealing with the German prob¬ law and justwe^as
come. under, world
of peace,- with increasing;
3urisdiction of the United States Businesss Corporations
meriting lem—the very same problem from t special
and is therefore excluded from
scrutl^j ^s ^t: often'has material prosperity serving as a
special tax treatment, so that their which he has now
fathered the before in
the jurisdiction -of the Court.
p^M^.jvhen, ^e ;have foundation for a flooring of the:
As foreign earnings can be reinvest¬
new
crisis at Berlin.
But while heen
a result
of this position on our ed abroad free of United
engageo^n. working'tout human spirit; :
V
•
'
V A
States the
agreement seemed clear, as basic social froftfonships through 1
We could;, then put4 aside the
part, other nations have adopted tax until the United States inves¬
events
subsequently
developed, due process .(pte# ft is certainly; hatred and distrust of the past and
similar reservations.
This is one tor actually receives his reward.
Mr. Khrushchev's
■- to' disagree
understanding proper for,
work for a better world. Our goal v
of the major reasons for the lack In
addition, more tax treaties of its meaning was
ostensibly with an opinigm^pL. a coiirt or will be. peace. Our instrument for; A
of judicial business
before
the
<

•

c,

.

„

.

.

.

,

.

,

'

.

,

.

,

-

,

should

Court.

Proposes Change in Federal
!

To

be

permit

/

remedy

this

Administration

situation

will

shortly

Law

the

sub¬

vestors.,
gram

speedily

"tax

reciprocal

negotiated to
sparing" and other

encouragements

to

The ICA guaranty

should

be

extended

to

in¬

pro¬

in¬

clude such risks as revolution and
civil strife.
Finally, a concerted

different from
The

ours;

crucial

-«-how

was

•

the

agreement

effective

when

agreed

to what it meant?

is

as

typical of

courts.

-

question remained
the

to

be

parties /dis¬
This

But

to the most

tions of

^"^meriCans

owe it achieving peace will Ue law and/
frodf§iriental proposi- justice. Our hope will b>e that, ; '
life to take the

our

under

these

conditions, the

greatest

caiiaB^fcr^making -certain;energies

that

critirtSijns of cpurt-deci-'of war,iwill instead

our

•

new

devoted to
5be

vast: ;

r\

weapons

used

to ;

sions do not become attacks

problem that can
on the
'clothe, house, and feed the entire;
arise wherever
any agreement is institution of the court itself!
world."; This-'is r the only "goal:
tions for modifying this reserva¬ effort should be made
to extend entered into
between nations.
Mr. Khrushchev has proclaimed Wrthy of our aspirations.: Com- ;
•:
tion.
It is our hope that
by our our whole treaty and guaranty
time and again that he, and his. j>eting Jn this way,
taking the initiative in this way, system into more
nobody will:
Agreements to Include
countries, espe¬
associates in the Kremlin, to
other countries may be persuaded
say lose, and mankind will gain.; ;
i
cially those in most need of devel¬
World Court
to accept and agree to a
lwthing of the Soviet peoples,'-./ A
!t;T 1
'
♦
wider opment.
*;
In looking to the future what desire
only a fair competition to -" V; pr,rrri! QtratKirrmre
jurisdiction of the International
The
mit to the Congress recommenda¬

a

-

r

'
-

_

.

great

Court.
There

nomic

is

class of disputes
nations
which, in the
have been one of the pri¬
one

between

past,

mary causes of war.
These
nomic disputes assume

eco¬

major im¬

portance
the cold

today
war

at

a

time

when

be shifting its
major front from politics and
ideology to the so-called "ruble

of

eco¬

investment

cooperation between governments
and between individuals of dif¬
ferent nations.
need

not

ture; indeed
it.

can

take

we

to

through
a meet this problem? I will not even
expjansion of private suggest to you that there is
any
is bound "to
develop simple answer to this question.

many new forms and channels of

We

practical 'steps

development

world-wide

may




adventure

For if it

we

fear

this

should

sufficiently

For

obviously there can be none.
But I do believe there is a
signif¬
icant step we can take toward

finding

adven¬

welcome
engages

We
in

an

should

urging

ments

answer.

take

that

in

provisions

test which system, Communism or
free capitalism, can better meet

initiative

future

be

agree¬
included to

'

torm ^tratlimore^ecs.

.

PITTSBURGH, Pa.-—Strathmore;

f

legitimate aspirations of man-' Securities, 'Inc., has ^been formed , [
kind
for
a
rising standard; of with
offices-, iri • the Bakewell;
living.
* *;
r Building to engage in a securities
,

business.

Welcomes Peaceful Competition

Perhaps it is significant that the
the

.

the

Officers

Klein,;President

are

ident; arid Treasurer.

feel

formerly with
Company.

obliged

to

The world

so

proclaim

so

knows that this

E.-

Auldus.H. Turner, Jr., Vice-Pres-

leaders of the Free World do not
often.

Charles

and Secretary;;
Both were

Kettering-Frankel;

„

Number 5842

Volume 188

.

The Commercial and Financial Chronicle

.

.

in the most publicized labor
play in U. S. industrial relations his-*
tbry starts May 5 when bargaining talks begin.
Veteran labor observers are guessirig that the steelworkers
will settle for a package costing between 6 and 11 cents per
manhour. That would likely mean a 4 to 6 cents wage boost, plus
improved pensions, insurance, and vacations. The package would
face for the union and also be
noninflationary.
First quarter sales by steel service centers were 15% to 25%

joyed and all men have it to a
vdegree. * /77 ■' 77". [ tt'- ;,if77 7?1
I

Seeurttws Salesman's Corner

Value

The

of Time.

v-.

r

mine

to

a

good

very

has

who

these

Things} to
Remember
framed and hung over the door¬
way to his factory and office. His
ilife has been an example of just
this kind of living. He is now in
his seventies but he comes to

JTwelve Thing* to Remember
-

indebted
of

Twelve

4-

n

am

friend

By JOHN BUTTON

better than those of the similar period in
1958, the magazine said.
Sales are best in the Chicago area where flat-rolled
products are
in strong demand by auto and
appliance makers. Business in New'

..-.;;,777777 The Improvement of Talent.

business every day that his health
Talent is something with which permits* He started life a poor
are born.
To have talent is boy and today he is a wealthy
allowing three hours for eating, not enough. Many a born genius man,1 not ! only v financially but
one hour for miscellaneous duties,
has made nothing of his great5 spiritually as well. It seems to me
and eight hours for sleep and-rest,- talent while others of lesser abil-that we could well turn back to
there are still four^ hours unac- ity haye left an impact Upon their such
practical living in these
countecl for. How well we use all. era,and .upon posterity. It is only times when so many believe that
24 hours each arid every dayv and when ^we^ improve upon our given you can get rich by living above
those long weekends-when for ^talents-that.we grow as individ- your means, that an expense acmost of us Saturday and Sunday uals and this is true in every field count should be padded, that the
are no longer work days, makes
of human endeavor.
stock market will never go down
There

during

hours

ing

York

normally eight work-y

are

day.

a

to

we

reward-

7

_

again, and that the

.

.

more

you

•

;
;

something-' which"-makes

Nothing worthwhile is accomplished without constant and con-/
too

big a
becomes

who

often

discouraged

——

gained

be

* *

all

Dignity of Simplicity.

Say what you have to

in the

say

possible words, live mod¬
and conserve your energy

an

•

The

Character.

of

mam

,

of 156%," Mr. Matthews revealed.

ket is baSed

i

'

.

more

On actual use than

frailties

all

of

appreciate

we

human

understand. the

we

kindness

a

do

meaning

so,,

is

,

man

hind to

were

be

soon

"

overcome,

/

Influence

The

most

man

the world's ills would

of

of Example.*/-

•

f

If you

wish your Children, your
business
associates,
and
your
friends to be more friendly, ef¬
ficient, capable, or energetic, your
.

•

Obligation of Duty.
niam

No

can

I-

" shirk

his

•

.

duty

without

conscience.

own

others

You

sometimes

never.,

but

yourself

•

-

The Wisdom of Economy.
:

The

not

greatest

always

lives

a

All

to the

man

nest

knock

man

egg

builds

ever

a

•

do

7.4

when opportunity did

at his door.

Will Steel Union

.

more

than

twifce

recession-hit
tions

were

made
as

2,689,000 tons for ingots and castings,
much as they turned out a year ago when

Demand

of most

suc¬

cessful

men arid you will find that
they had the patience to -build
step by step and stone upon stone
disregarding discouragement and

misfortune.
Lincoln
Graham
an

in

Whether

politics,

Bell

and

an

his

it

was

a

Alexander*

telephone,

Edison with his electric light,

John Wanamaker in business,
patience was their watchword.
or a




weekly production

are

that U.

7

S.

133,918 passenger cars and 26,260 trucks, off 1.5% -and 0.7%
respectively from previous week's totals of 135,934 and 26,440.
The recent week's truck figure represented a 1959 peak while
cars were only a fraction off the year's high of 135,953 set Jan,
12-J7.
7'
7
77; ■ -7 V v.«;> ' V! / v'1 -Vv
; ■'*"-- 7'
'1
The statistical publication reported that current schedules are.

■

pointing toward April production of 585,000 cars and 115;Q00 trucks
compared to the 577,000 and 111,000 units planned as, the month
got underway.
Turned out in April last year were .316,503 cars
522 trucks#

cind

On

production bottomed out at 1,270,000 tons.
1.5 points from the previous week.

may

This week's schedules of 133,918 cars and 26,260 trucks
week a year ago—58,664 and 10/204—by
128% and 62% respectively.

290,334.

bettered the corresponding

said

"Ward's"

Chevrolet

was

primarily responsible for the

2,016-unit dip in car programming in the week ended April 24.
The division's assembly plants at Baltimore, Md., and Tarry town,
worked only four days because of an adjustment in new car
A Buick-Oldsmobile-Pontiac at Framingham, Mass./'

N. Y.,

inventories.

closed April 20 because of

was

Elsewhere

five-day

Patriots' Day.

car-building operations were scheduled

except for six-day work at American Motors in Kenosha, Wis./
Pontiac in Michigan, Lincoln-Thunderbird in Wixorn, Mich,, aH<|
Division at Atlanta,
Louisville, Ky.

Ga.,

Ford
and

Dallas, Tex., Kansas City, Mo.,
r ;

Electric Output 11.9% Above 1958
The amount of electric energy
and power

Opera¬

Week

/

distributed by the electric light

industry for the week ended Saturday, April 25, was
12,538,000,000 kwh., according to the Edison Electric-

estimated at
Institute.

v

-

-

7

April 18 output decreased by 71 million?
the previous week but showed a gain of

For the week ended

kwh.

below

that

of

1,332,000,000 kwh. or 11.9% above that of the

comparable 1958 week.-

Loadings 18.5% Above Corresponding 1958 Week

Loadings of revenue freight for the week

ended April 18, 1959,

633,546 cars, the Association of American Railroads an-;
nounced.
This was an increase of 99,039 cars, or 18.5% above the.

totaled

corresponding week in 1958, but a decrease of 53,404 cars, or
corresponding week in 1957.

7.8%

below the

Loadings in the week of April 18 were
above the

15,187 cars, or 2.5%:

preceding week.

won't hit 100%. To put the rate, appre¬
require use of uneconomical equipment

said open hearth furnaces are run¬
ning full, producing some 86% of the industry's rated tonnage.
'Electric, basic oxygen, and bessemer units make the rest.
Since
the market fpj&bessemer. steels is shrinking, it is unlikely that
the idle bessejners will be pressed into service.
All 12

steegriaking districts were at or above 93% of capacity.

Much

talk*and

probably

steel

labor

a

strike

drama,

will

come

"Steel" said.

before the de¬
The first act

Exceed Production

Lumber shipments of 484 mills reporting to the National Lum¬
ber Trade

The metalwprking weekly

in

Lumber Shipments Again

boost the ingot rate slightly higher before the

ends* but im probably
ciably above 9o^o would
and expensive overtime.

nouement

year-to-date basis, according to "Ward's" both car and

a

truck making are 38% higher than last year.
Totals are 2,086,293
cars and 401,644 trucks contrasted to 1958's efforts of 1,507,467 and

up

half
careers

Accept Face-Saving Offer?

Steel

Steelmakers

Virtue of Patience.

Check the

on average

production of cars and trucks in
April will surpass the assembly goals set up at-the beginning
of the month.
7
Estimated for week ended April 24 by "Ward's" were volumes

Car

production will probably continue at last week's record
pace of<95% of capacity in the remainder of the first half, "Steel"
magazine predicted April 27.

surplus,

regretted having

these

"Iron

•

who

<

%7'777v:- ■?77'7:7>"7*'7

things add up to a basically strong steel market,
Age." Even if there is no strike, steel demand in the
third quarter will decline but it will not collapse.
And there
could be a strong comeback in the fourth quarter.

said

-

within. his income and who

no

The

/

r

opportunities

come

systematically
but

fool

can

7;/77"

Age" said the auto companies will be among those who
less steel on hand at the end of second quarter than
they had hoped for: "Some of them will be going well if they
have' two months' supply, whereas they had been counting on
three months'.supply,"
7
have

.

facing the indictment of

his

that the

April's Auto Output May Exceed Original Goal

"Iron

will

/

accepting

year.

areas.

;

The

are now

orders with more confidence than was the case
On top of this is the knowledge that not all
the steel ordered for delivery before June 30, possible strike
deadline, will actually be shipped on schedule. Thus, considerable
second quarter business will carry over into third quarter."
7 \Meauwhile, customer pressure for delivery is
growing daily
as
more inventories are affected by delivery carryovers.
Steel
'users are becoming more critical now because they are consum¬
ing more steel on the one hand hnd taking in less than they had
expected on the other.
Because of the carryovers, steel users are now almost all gam¬
bling* on going into a possible steel strike period with less
in¬
ventory than they had been planning on as little as two weeks
ago.' This is particularly true of steel service centers in some

actions must lead the way.

own

This, of course, would depend on whether there is
and. how long it might last. 7

third /.quarter

'earlier .this

perfect that he can look down.
upon another, and there is never
a day that some kindly act, word
or
deed cannot be accomplished.
Tn no other way can the world
become a happier and better place
—if

1955.

steeL, strike,

""7$ny rate," said "Iron Age," "the mills

of

None

others.

to

tons in

the,

beings

announced

of

.

Only, when

production is based

Indications

mar¬

7; If their hopes are borne out, steel output this year could ap¬
proach or even exceed record production of 117 million ingot

Power of Kindness.

The

Institute

.

*Index of

on

.' rise in the second half and in 1960.

7-77

Steel

for 1947-1949.

J

inventory building, accordjrig to "The Iron Age," national metalworking weekly.
"Iron Age" said more steel people are becoming convinced
that the rise in groSs national'product, one of the best barometers
of economic activity, is the real thing.
They look for a continued

reputation for reliability, punctu-'

to use.

Maintains Upward Swing
and

,

*

ality, sobriety and faithfulness,
will always have a bankable asset
that he will probably never have

Iron

Estimated percentage for this week's fore¬
.7
7
V '7
'•'•*.
•, • /
7■ 7
7
A month ago the operating rate was *164.2% and production2,638,000 tons.
A year ago the actual weekly production was
placed at 1,289,000 tons, or 80.2%.
;
7
/ 7

Output May Exceed 1955 Record High

$feel; men are beginning to hope '-that the current strong
a

is

147,633,670 net tons.

average

.

who has established

but the saving in the:
$20 to $25. Invented by Frank Ma-7
International Ore Processing Co., Los
7.7
:7
•'7' ' -• ?■

cast is 94.4%.

Steel
Worth

7

compound and charged
and coke are not used.?

capacity and 2,646,000 tons a week ago.
7;
Actual output for the week beginning April 20, 1959 was equal"
to 93.5% of the utilization of the Jan. 1, 1959 annual capacity of,

for constructive living.

>

producer of steel

into steel.

of

their environs. Slight decreases are
reported in 12 other places and in 38 places prices are a little
higher.
In contrast, labor costs have risen in >79 places and
remained unchanged in 64 places for the half year'just past.
• 7 "7
Combining material prices and base hourly wage rates for
all places, costs have gone up in 66 of the cities, remained static
in 74, and dropped slightly in three. "These observations clo not
hold uniformly true in each of the cost-sampling cities, but rep¬
resent the way the averages happen to work out.
Nationally,
qV^ralT/cost increases since 1941 range from 126% to 216% for

your efforts and
the task at hand
the rewarding pleasure is one of
the greatest blessings given to a
healthy man.

estly,

—•

7

143 major reporting cities and

v

small

operating rate of the steel companies will average *166.5% of steel
capacity for the week beginning April 7, equivalent to 2,674,000?
tons of ingot and steel castings (based on average weekly, pro¬
duction for 1947-49) as compared with an actual rate of ?,164.7%;

'

'

.

,

concentrate upon

fewest

'

.

(and

is4
777*7':

The Pleasure of Working.

The

•

a

investment in

Steel Output

Occasionally

--

developer

The American

easily that"

true and lasting value.

If you apply

•

capon

-

enable

tinues weak.

Continued from page 6

gbai.r;Ndthingf:

haveled'hinrtb his

—

\

■"

last turn in the road which would

-

about his bread and butter

•

is

quits just before he comes to the

can

in

role

the univerpe. Given this great maybe a roast
hurry to arrive/and: tglentVit; should be used and en- as well).
•
The-fellow who

tinued efforts
in

unioue

could

piggyback truck vans is picking up,
steam, "Steel" reported.
Piggyback carloadings this year may:
average 7,500 to 8,000 units weekly—50% better than last year's;
pace.
Altogether, 48 American railroads are doing piggyback!:
vs. 18 in 1954
(piggybacking^ first year).
f '
"Steel's"
price composite on steelmaking scrap held un¬
changed at $34.67 a gross ton last week, but the market tone con¬

do

any salesman that lives by this
creed should never have to worry

him

process
ore

is mixed with

ore

Railroad

used them just to fill tip
the column this week. However,

clo not know. Possibly that is also

,

Success of Perseverance.

minutes

The

drigal, its
Angeles.

and - better ideas and things we Button

■

The

7

average steel mill would be

one

the previous Value of time.

r

which directly reduces iron ore
revolutionize the industry, "Steel?

directly and refine it
an "alloying"
into any kind of melting furnace.
Scrap
Production costs are $30 to $35 a
ton,
Iron

.

a

may

slow.

process

35

in

castings to buy

20 we

are

steelmaking

new

steel

reported.

that is not, .When * J1® Joy „oi Originating.
"
the leSs' the • boss will appreciate
scarcely heed. time, ;; !Why it ,is/fhat man of all the y°u-.
'
when we are 40we begin to notice
animals takes such great delight
After reading the foregoing
how. it is-fleeting .away, at 50 we
d
e]
ih,
d
,reatin2 new
precepts and philosophical obsercount the days, after that we know
ev?$Pin8
creating new vationSj some may say that Mr.

irig'life and

New England remains

and

A

After-.we

,

the difference between

35

(2015)

Barometer were 5.1%

18, 1959.

ended April
were

2.9%

above production.

amounted to 43% of stocks.
orders were equivalent to
and gross
For

above production for the week

In the same week new orders of

unfilled'
current rate,

For reporting softwood mills,

20 days' production at the

stocks were equivalent to 43

the

these mills

Unfilled orders of reporting miil§u

year-to-date, shipments of

days' production.
reporting identical mills
Continued on page 36

The Commercial and Financial Chronicle :

36

the

Continued from page

35

last Tuesday were estimated at 54,000 bales, as

week ended

compared to 50,000 bales a week ago and 140,000
last year.
'/%
/';;%•
/'

above production; new orders were

2.6%

were

duction.

.

,

t

Compared with the previous week

4.5%

above pro¬

■

,■

were

barley, beef, sugar, cottonseed oil, and cocoa
Louver were wheat, oats, eggs,
lard, steers, and hogs.
.
The Index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use.
It is not a costof-living index.
Its chief function is to show the general trend
of food prices at the. wholesale level.

week

Retail Trade Volume

from 304 in the preceding week, reported Dun &

ended April 23

Casualties remained below the 329 occurring in
but they exceeded the 263 in 1957.
Continuing below the prewar level, business mortality was down
H% from the 326 in the comparable week of .1939,
All of the week's downturn occurred among small failures,
those with liabilities under $5,000, which declined to 41 from 48
in the previous week and 47 a year ago. On the other hand, cas¬
ualties involving liabilities of $5,000 or more edged up to 259 from
256 last week but remained below the 282 of this size in the pre¬
ceding year. ^Thirty-one of the failing concerns had liabilities in
excess of $100,000—the same number as a week earlier.
Retailing casualties declined to 149 from 155 during the week,
and commercial service dipped to 24 from 29.
Contrasting in¬
creases lifted the toll among manufacturers to 54 from 49, among
wholesalers to 35 from 34. and construction. contractors to 38
Fewer businesses failed than last year in all groups ex¬

cept wholesale trade where a mild rise from 1958 prevailed.
Four of the nine major geographic regions reported lower
tolls. In the East North Central States, failures fell to 37 from 55

week; in the West South Central States, they
dropped to eight from 17. As well, there were relatively slight
dips in the South Atlantic and Mountain States. No change ap¬
peared in the Middle Atlantic total, 110, but increases were noted
in four regions, including the Pacific States where casualties rose
to 76 from 66.
Failures were less numerous than a year ago in
the

previous

six of the nine regions; the only
was in the Pacific States.

appreciable increase from 1958

March Failures Below Year Ago
Rising moderately in March, business failures were up 9%
to 1,263, and their liabilities, at $65.1 million, loomed 11% larger
than in February, according to Dun & Bradstreet. .But, casualties
did not return in either number or size to their January level
and

remained

considerably below the postwar high of 1,495

re¬

corded in March last year.

The failure rate continued down to 50
per 10,000 listed enterprises, the lowest since mid-1957.
Manufacturing mortality changed little from February and
fell most sharply, 25% from last year's level.
Only about half as
many casualties occurred in the apparel and leather industries as
in the previous March. Wholesaling failures climbed steeply from
the

preceding month in food, furniture, and general merchandise.
among wholesalers held close to 1958 levels, however, in

all

trades

building materials.

save

Mixed month-to-month

trends appeared in retailing.

While
food, automotive, and restaurant concerns succumbed than
in any other month- this year, casualties in the retail apparel,
general merchandise, and building materials trades fell the lowest
so far in
1958.
Year-to-year comparisons also reveal contrasting
trends

in retail lines.
Tolls in apparel, furniture, appliances,
building materials, dropped 23%; to 36%; but mortality remained;/

about

even with last year in most other retail lines.
All except two of the nine major geographic regions
reported

more

failing businesses than in the

previous

month.

contrasting side of the regional picture, Illinois
casualties climbed the highest since 1942 and marked year-toyear
increases also prevailed in Rhode Island, New Jersey,
Georgia, Washington and Oregon.

Commodity Price Index Continues

be the

to

highest

on

record, topping

1956

Flour

upward.

in little demand

was

Furniture

stores reported

gains

during the week but prices edged
over

There

appreciably.

ox

the

are

Holiday.
Prices
sharply
The price of hogs also showed a slight increase at the
end of the week,
following earlier declines brought on by the
fieav lest l eceipts in months.
Trading was only moderately active
in lambs and
prices remained unchanged.
The price of cotton fluctuated
during the week but ended un¬

the price ot

government owned cotton next season stimulated
demand for new-crop months.
Softening in near July contracts
prevented week to week gains. United States cotton exports for
•

;

*

•




••

'

........

.

barbecue

in

.......

.-tmor-r.-T

of

has

Southwest Building,

the

been

Securities

changed to First State
Corporation.

Now First

Bergen Corp.

RIDGEWOOD, N. J.—The firm
name of J. L. Montgomery & Co.,
494
Hanks
Avenue, has
been
changed to First Bergen Corpora¬

supplies,

tion.' '

%-/"'"/ ':'v'

%v

•

:-///%

With Walston Co.

noticeably

Nationwide Department Stores
For

above the

6%

LOUISVILLE,; Ky.

like period

Reid

as

ended April 18,

OAKLAND, Calif. —Ralph H.
and Roy L. Thomas are

with Grant, Fon¬
Co., 360 21st Street.
Mr.
Thomas
was
formerly
with
Stephenson, Leydecker & Co.
taine

&

Co.

Iowa
has

DENVER, Colo.—Writurs Affil¬
at

Fillmore

105

securities

to

business.

in

engage

Partners

tives of R. G. Dickinson & Co.

Meric & Co.
NEW

Form Platnick-Bader
and

have formed

a

1562
a

—

Opens

ORLEANS, La.

—

Jack

to

CITY, N. Y. — The
Garden City Securities Corpora¬
tion is engaging in a securities
business

offices

from

at

1001

Franklin Avenue.

Albert

under
the
of Meric & Company.

Saul Lerner Co.

'

Saul

Building

is

Lerner

engaging

in

a

securities business from offices at
West

12

Grant, Fontaine Branch

engage

securities business.

Sees.

GARDEN

Meric is engaging in a securities
business from offices in the Cotton

Stanleigh B a d e r Exchange
firm name
partnership, Plat-

Ocean Avenue

1512

at

Planning Co.

Garden City

a

nick-Bader Associates with offices
in

of Financial

are

are

BROOKLYN, N. Y.

offices

from

iated has been formed with offices

Seymour William R. Wright and Hulan H.
E. Spilka and Harvey R. Leavitt. Turner.
Both were formerly representa¬

at

Planning

Fresno Road under the firm name

Spilka,

"Daily Record"
Building to engage in a securities
Partners

business

formed

—

been

with offices in the

Platnick

&

Forms Financial

Form Writurs Affiliated

Spilka, Leavitt

DODGE,

business.

connected

now

WILMINGTON, Del. —Alice S
Rhodes is engaging in a securities

Form
FT.

Grant, Fontaine

Keeler

1958.

Leavitt

Co.,

(Special to The Financial Chronicle)

department store
sales in New York City for the week ended April 18 showed an
8% increase over that Of the like period last year. In the pre¬
ceding week, April 11, an increase of 18% was reported; April 4
a decline of 18%
was reported and March 28 showed a 3% advance
over the
1958 week.
For the four weeks ended April 18 a 2%
increase was noted over the volume in the corresponding period
in

Lewis,

R.

with Walston &

now

Two With

In the preceding
recorded. For the four

last year.

the Federal Reserve System

to

are

taken from

week, for April 11, an increase of 18% was
weeks ended April 18 a gain of 6% was registered.
According

^

.,

Garrett'

Inc., 430 South Fifth Street.

country-wide basis

on a

Lincoln

Hampton,

—,

James A. McCrocklin and John L.

Sales Up (>%

the Federal Reserve Board's Index for the week
increased

(Special to The Financial Chronicle) v

April 18 Week

Department store sales

44th

Street, New York
City, under the firm name of
Saul Lerner Company.

MODESTO, Calif.—Grant, Fon¬
taine & Co. has opened a branch
office
at
123
McHenry Avenue

Irwin Schloss Opens
Irwin
15

Schloss

Broad

is

conducting

a

Street, New York City.

under

management of Theo¬
dore O. Ley decker;
\

NEW

—

Daniel

Moore,

a

securi¬

opened

KENSINGTON, Pa. —
Leonard & Lynch have
a
branch office in the

ties business from offices at 1096
Johnston Avenue.

Mellon

National

WANTAGH, N. Y.
Widelock

is

conducting

Shufro, Rose & Meyer
The firm

the

Moore, Leonard Office

Daniel Widelock Opens

Bank

&

name

of Shufro, Rose

&

Co., 2 Broadway, New York
City, members of the New York
Stock Exchange, on April 30th,
will be changed to Shufro, Rose &

Meyer.

Form Capital Aid Corp.

Trust

GREAT

Building;

Aid

New Bache Branch

Cruttenden, Podesta Adds

DALLAS,

Tex. — Bache & Co.
has opened an office in the Mer¬
cantile Dallas Building under the
direction of Arthur J.

changed fi om. the previous week.
The announcement by the De¬
partment of Agriculture that carrying
charges would be included
In

of Mickle &

Bank

stepped up their buying of frozen
juice concentrates, canned goods, and some dairy products.
Volume in fresh meat, poultry, and baked goods advanced slightly
from the prior week, while the call for fresh produce was sluggish.
Housewives

before, partially
moved
ahead, rather

Jewish

gains

further

were

firm
Company, Inc.,

Texas —The

name

last year in occasional

over

the weekend and pros¬

good. Prjces held steady.
Raw sugar prices spurted ahead this week
with sizable orders
from refiners and
beverage manufacturers. Prices of coffee re¬
mained firm in moderate
trading this week. There was little
activity in the cocoa market but prices rose
slightly.
Cattle receipts were smaller than the
week
because

Now First State Sees.
HOUSTON,

garden implements, and hardware during the week.

securities business from offices at

Purchases of rice increased

pects for export sales

Company
has
branch office at 1412
Street, N. W. under the di¬
rection of Howard R. Bloch.
a

13th

tables, outdoor metal tables and chairs, and case goods.
Interest
in major appliances moved up somewhat from both the prior
week and last year, especially laundry equipment and refrigera¬
tors.
Volume in linens and draperies advanced moderately over
the similar 1958 week and the call for floor coverings was up

by

closing ahead of last week.

Investment

opened

the prior week,
moderately; over-all sales
of women's apparel were up appreciably from a year ago.
In¬
creased buying of men's Summer clothing, especially sportswear,
boosted total sales of men's apparel moderately over both the
prior week and the similar period last year.
There were slight
year-to-year increases in children's merchandise.

12%. Corn prices were off at the close of the week.
Rye and oats
continued to drop in price in quiet
trading. Soybeans continued to
gam,

ton

coats, sportswear, and

The buying of women's Spring dresses,

to Decline

Daily Wholesale Commodity Price Index, compiled by
Dun & Bradstreet,
Inc., fell to 276.76 on April 27 from 277.88 a
week ago. The figure was also lower than the
278.73 level of one
year ago. Steel scrap, eggs and grains led the decline.
Wheat prices dropped from the previous week in
active trad¬
ing. Liquidations and slow export market were factors in the de¬
cline.
The Agriculture Department
estimated 1958-1959 world

Princeton In v. Co.

//■

WASHINGTON, D. C.—Prince¬

while interest in beachwear moved up

The

wheat production

in the week ended

of retail trade

was

However,

the

Wholesale

DALLAS, Texas — Morgan &
Morgan have opened el branch of¬
fice at 110 Lake Highlands Vil¬
lage under the direction of Henry
A. Morgan.

fashion accessories remained at the high level of

as
heavy casualties as in March of 1958. Con¬
casualties dipped the lowest in over two years and the
Florida total was the smallest in a year and a half. Among the

cities, noticeably fewer businesses failed than last year in New
York, Chicago, Philadelphia, Detroit, Los Angeles, Cleveland,
St. Louis.
%%%.:%
%/'. %
'■'%/,/'

$35.00.

Morgan & Morgan. Branch

this

sales promotions

gains were maintained.

volume

dollar

Todd, Jack M. Bass & Co.

Tariff

1% to 5% higher than a year ago, according to spot
estimates collected by Dun & Bradstreet, Inc. Regional estimates
varied from the comparable 1958 levels by the following percent¬
ages: East North Central +5 to -j-9; Middle Atlantic -f-3 to +7;
West North Central +2 to +6; Mountain +1 to +5; South Atlan¬
tic and East South Central 0 to +4; New England and Pacific
Coast —1 to -f-3; West South Central —2 to +2.
April 22

necticut

On

total

The

will

spring

Steady

in

reduction

a

and marked year-to-year

of them had

none

Was

Nashville

of

annual

Reservations may be made with
Louis

week, consumer buying was close to the prior week and moder¬
ately exceeded that of a year ago.
Shoppers were primarily in¬
terested in apparel, furniture, and linens.
Scattered spot reports
indicated that volume in new passenger cars expanded somewhat

Tolls

more

there

Although

Bradstreet, Inc.

the similar week last year,

from 37.

price this week.

.

Dip in Business Failures

Commercial and industrial failures dipped to 300 in the

all higher in

were

Dealers

their

outing
May 14 and 15. A cocktail party
and dinner will be given at the
Hillwood Country (Club on May
14.
An outing, including sports,
special events, etc., will be held
May 15 at the Belle Meade Coun¬
try Club.

Flour, corn, rye,

5.5% above.

Small

hold

from the $6.58 of the comparable date last year.

decline of 6.4%

ended April 11, produc¬

reporting mills was 1.7% above; shipments were 7.2%
above; new orders were 6.4% above.
For the latest week, as
against the corresponding week in 1958 production of reporting
mills was 15.7% above; shipments were 16.7% above; and new
orders

NASHVILLE, Tenn. —The Se¬
curity

was unchanged from the prior week on April 21.
For the fourth consecutive week the index was $6.16.
This was a

Inc.,

street,

of

tion

Nashville Dealers

,

compiled by Dun & Brad¬

Wholesale Food Price Index,

The

Spring Outing

in the same week

Price Index Again the Same

Wholesale Food

in

Thursday, ApriL30, 1959

.

.

(2016)

Messing.

business
from offices at 526 Ralston Street.
eo'.'i

i).,:.

'

v.

.

^

'

v- ■

■

from
~

*

offices
-

'

.

*

at

300

/

With Walston Co.
(Special to The Financial Chronicle)

Cruttenden, Podesta & Co.,

LOS

Street, mem¬

ANGELES, Calif. —David

bers of the New York and Mid¬

securities

a

business

Northern Boulevard.

CHICAGO, 111.—Melvin C. Rich¬
ards, Jr. has become associated
209 South La Salle

RENO, Nev.—Alfred E. Beit is
conducting

ties

(Special to The Financial Chronicle)

with

A. E. Beit Opens

NECK, N. Y.—Capital
Corp. is conducting a securi¬

-

-v-

'

E. Hagenow is now with Walston

west

&

Stock

Co.,

Exchanges. He was
previously with F. S. Moseley & Street.
Co.

.

,

Inc.,
Mr.

550 South Spring
Hagenow was: pre¬

viously with Daniel-Reeves & Co.

Volume 189

Number 5842

The Commercial and Financial Chronicle

The following statistical tabulations

latest week
week
Latest

-AMERICAN

IRON AND STEEL

INSTITUTE:

Indicated Steel operations (per cent

^Equivalent.to—
Sfceelingots and castings

•

i

(net tons)

Ago

§2,074,000

(bbls. of

average

,

that date,

in

or,

cases

of quotations,

Year

Ago

§94.4

May 3

-

; american petroleum institute:
Crude oil ^and condensate output—daily

Month

on

production and oilier figures, for the

cover

Dates shown in first column

month available.

month ended

Week

May 3
'''

' '•"

'

or

or

Previous

Week

capacity)

*93.5

93.2

gallons each)
:
to stills—dailyavetage (bbls.)

*2,646,000

2,638,000

April
_l— April
April
-April
Stoefes et refineries, bulk terminals, in transit, in pipe lines—
v Finished
and unfinished gasoline (bbls,) at
April
-Kerosene (bbls.) at:
—April
.Distillate fuel oil (bbls.) at
April
decidual fuel oil (bbls.) at__
April

.

1
-

«

1

1

28,592,000
1,902,000

17
17

12,833,000

1,936,000

2,107,000
12,602,000
6,788,000

6,410,000

Total gas sales (M therms)
Natural gas sales (M therms)
:
Manufactured gas sales (M' therms)

Revenue

14,507,000

7,239,000

214,594,000

19,846,000

19,281,000

17

81,518,000

78,994,000

17

56,430,000

57,393,000

633,546

577,461

—-

AMERICAN

civil -engineering

ERS
Total

9,372,500
9,042,000
29,200

212,139,000
18,333,000
77,194,000
55,082,000

construction

tcklvs-record:

618,359

603,178

568,620

569,071 •'

534,507
493,728

Private construction

:

Public construction,

—

$314,300,000

$371,300,000

$355,400,000

141,200,000

167,700,000
203,600,000
176,000,000
27,600,000

179,900,000

126,600,000
•

coal output (u.

bureaU'OF'WE^B):

s.

\'' •.?;'

'

C'-'.

8,055,000

Bituminous coal and lignite
,

(tdns).——i——— April 18
Pennsylvania anthracite (tons>—---wj.—April 18

r.

.

46,500,000

363,000

I

40,500,000

SYSTEM—1947-49

-

BRAD STREET,

.

INC.

;

C

COMPOSITE PRICES:

AGE

IRON

Finished steel

Pig iron

7,172,000

386,000

(per gross ton)-.

Electrolytic

(E.

& M,

—

DUN

-

390,000

°

j"

-

300

304

297

:

329

6.196c

6.196c

6.196c

(New

Lead

(St.

crude

oil

output

consumption domestic

Straits

tin

MOODY'S

at

stocks

$66.41

$66.41

$66.49

$34.83

$35.17

$40.50

$31,83

for new

New

freight
Backlog of
(end

of

freight

Month

Public

Utilities

carriers

(in

tons)

11.000c

11.300c

10.800c

11.300c

11.800c

11.500c

11.500c

11.500c

10.500c

11.000c

11.000c

11.000c

10.000c

24.700c

24.700c

24.700c

24.000c

102.500c

102.500c

103.250c

93.000c

84.35

84.32

85.59

96.09

88.54

89.09

90.06

96.23

91.77

92.50

93.82

103.13

91.05

92.20

100.00

23

88.81

89.23

90.06

96.23

Domestic warehouse credits

Al,ril 28

83.66

83.91

84.55

96.65

Dollar exchange

87.59

87.86

88.54

91.62

Based

88.27

88.95

89.78

97.94

90.20

90.34

91.91

^8

Apr?l 'ib

——

:a April

——

28
April-8

—

11.500c

12.000c

zinc smelter

Slab

2,000

output all grades

pounds)

Shipments

4.03

—April 28
April 28

-

_

3.90

2.84

4.48

4.41

Stocks

at

end

of

Railroad

Group

4.24

4.15

3.56

4.26

3.75

4.37

I—

^

—

ACCEPTANCES

Ap!'-i

—

Domestic

FEDERAL

RESERVE

■

4.34

INDEX

ENGINEERING

NATIONAL PAPERBOARD

(tons)

Production

'

.

CONSTRUCTION

—

ACCOUNT

BEBS, EXCEPT ODD-LOT DEALERS AND

.

%

287,889

18

323,387

296,719
312,695

279,776
306,218

263,614

18
18

95

94

94

87

448,740

482,117

444,024

336,737

110.98

111.01

110.70

109.99

4

2,505,290

1,996,400

8,242,110

4

394,040

628,060

4

2,074,590

369,580
1,566,260

2,584,620

April

4

2,468,630

1,935,840

3,212,680

—

A.

4

85,830

033,399

552,070

135,130
924,700

325,255

Durable

719,229

623,730

1,059,830

381,855

4

387,620

4

669,645

562,540

dealers

241,250
22,850

536,950

2.98,150
821,100

894,279

348,350

71,660

56,600

497,270
3,078,209
3.575,479

2,942,240
462,940
2,552,450
3,015,390

4,691,999
808,090
4,001,370

4,809,460

1,599,550
299,410

1,510,465
1.700,875

1,809,526

1,420,266

2,313,987

$100,603,462

April
Apru

$70,874,815

$118,922,621

1,055,385
$45,075,900

Odd-lot purchases by dealers
Customers' short sales

Dollar value

1,301,227

6,767
1,622,594

5,912

9,755

17,893

1,295,315

2,107,772

793,753

$84,533,142

$64,042,553

$108,954,498

$35,334,040

435,070

368,660

562,140

207,870

43JL070

April
April

■

—

1,629,361

April
——"-April

Customers' other sales

3681660

562ll40

2071870

2,117,527

811,646

Round-lot sales by dealers—
Number of shares—Total

APn
April
April

Other sales

dealers—

,

.

.April

4

606,7.90

467,240

784,900

424,410

of

$883,000

Short

sales
sales

WHOLESALE PRICES, NEW SERIES
LABOR — <1947-49 = 100):

—

-

'Farm

it
Apr!J
April

99,857
142,235

16,541,900

529,060
13,150,930
13,679,990

903,300

20,969,810
21,873,110

552,490
8,488,750
9,041,240

All

manufacturing

of

—:l.

124,220

120,134

79,046

85,523

238,641

12,088,000

2,000 pounds)—

(tons

S.

DEPT.

SERIES—Month of

*11,949,000
*0,805,000

11.542,000

6,913,000
5,175,000

*5,144,000

5,040,000

163.6

*100.6

144.9

97.7

*96.6

93.3

15,925,000

*15,772,000

9,180,000
6,745,000

*.9,063,000
*6,700,000

15,355,000
8,742,000
'0.013,000

294,367

235,784

185,646

216,127

224,260

28^576

Seasonally adjusted

147

145

128

Unadjusted

149

147

129

$3,757

$3,942

596

531

550

715

765

1,296

$5,788

$5,053

$5,788

130,706
2,811,717
90,376

*145,077
*2,855,135

117,166
2,812,4)94

97,102

82,048

21,578

*23,397

23,538

36,379

*35,436

33,980

$1,400,400

$1,513,600
1,154,200

$1,510,900
1,095,300

(production

goods
Employment indexes
All manufacturing

indexes
(1947-49
manufacturing

Average

100)—
.

Estimated number of employees in manufac¬
(

manufacturing

STRUCTURAL STEEL

FABRICATED

INSTITUTE

CAN

(AMERI¬

CONSTRUC¬

STEEL

OF

TION)—Month of February:
Contractts
closed
(tonnage)—estimated

(tonnage)—estimated

Shipments

OF GOV¬

INDUSTRIAL PRODUCTION—BOARD
ERNORS

OF

FEDERAL

THE

LIFE INSURANCE PURCHASES
LIFE

OF

INSURANCE

.—

—

RESERVE
March:

of

INSTITUTE

Month

Of

Mar.

omitted):

Meats

and foods

119.9

119.3

119.4

92.5

*92.5

90.3

97.5

107.5

*107.3

107.0

111.4

April 21
April 21

102.3

101.8

98.6

110.7

128.1

128.1

127.8

125.7

^Includes 769,000 barrels of foreign cru de runs. §Based on new annual capacity of 147,633,670 tons
against Jan. 1, 1958 basis of 140,742.570 tons. tNumber of orders not reported since introduction oJ
Monthly Investment Plan. (Prime Western Zinc sold on deliv ered basis at centers where freight from East St. Louis exceeds
♦Revised

as

figure.

,©f Jan. X, JL959, as

one-half cent

a

pound.




—

—

'

11
METAL OUTPUT
Month

119.9

6.502,000

Avge.—100)—

(1947-49

Payroll
All

workers)

goods

of

(in

■

-

V

(BUREAU OF MINUS)—

February:

Mine production of
United States:

April 21
April 21
April 21

products—
foods

98,943

March:

Gold

Processed

All commodities other than farm

580,590

15,961,310

U. S. DEPT. OF

Commodity Group—
All commodities—

130,075

140,928

82,952

(tons

EMPLOYMENT AND PAYROLLS—U.

Group
*

—

$862,000

117,235

Industrial

Total round-lot sales—
Other

$897,000

.......

pounds)

2,000

(000,000's

STOCK SALES ON THE N. y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION
FOR ACCOUNT OF MEMBERS (SHARES):

Total sales

600

March:

of

TOTAL ROUND-LOT
•

440

NEW YORK—

month

SYSTEM—1947-49=100—Month

sales

Short sales

Round-lot purchases by
Number of shares

OF

omitted)

Refined copper stocks at end of period

All

(customers' purchases)—!

(customers' sales)—
orders—Customers' total sales

10

Durable goods
Nondurable goods

COMMISSION

———

6,157

200

turing Industries—

ACCOUNT OF ODDN. Y. ISTOCK

of shares

—Dollar value

210,621
140,544
03,310

$4,477

3,556,345

April
April
April

DEALERS AND SPECIALISTS ON
EXCHANGE—SECUURIT1ES EXCHANGE

BANK

(000'S

OF LABOR—REVISED

*

Odd-lot sales by

44,900
492,050

162,532
17,970

10,610

Nondurable

555,610

21,700
434,120
455,820

April

Other sales
Total sales

LOT

»

S.

4

383,300

17,400
370,220

/,

180,942

fabricators—.

4

381,410

4

for account of members-

STOCK TRANSACTIONS FOR ODD-LOT

*

U.

In

to

4

1

1

33,917

Crude (tons of 2,000 pounds)
Refined (Ions of 2,000 pounds)

4

sales

Total purchases
Short sales

31

130,096

Copper production in U. S. A.—

April

off the floor-

purchases

Number of

M'ar.

160,712

OUTSTANDING—FED¬

INSTITUTE—For

April
.April

—

•

initiated

% Total round-lot transactions

*

RESERVE

of

136,947

165,987
121,260

(net tons)

Europe (net tons)
To Asia (net tons)
To South America (net tons)
Undesignated

COPPER

619,384

$1,397,691

anthracite

To

PAPER

617,595

564,319
427,372

MINES)—

tons)

April
.April
April

—
—

OF

North and Central America

April
April

Other sales

Number

(net
To

Deliveries

the floor—

on

Other sales

•

1,009,950
210,960
886,960
1,097,920

(BUREAU

750,150

590,800

—

$1,314,469

.106,900

L.

and municipal

ERAL

April
April

223,780,000

$1,644,300
837,400

—

Month of February:
S.
exports of Pennsylvania

230,130

252,412,000

216,100

construction

EXPORTS

COAL

As

—-

•" Other transactions

-

3.80
389.2

\

sales

Total

4.28

389.8

MEM-

OF

•

transactions initiated
"Total purchases
Short sales

Total

4.39

450,239,000
139.240,000

of

Federal

SPECIALISTS

Other sales

•

SUito.

3.88

which registered-

...—

Other

•-

4.30

4.43

April

Total purchases.
Short sales
Total

4.52

4.49

392.9

111,870,000

EN¬

NEWS-RECORD —Month

construction

COMMERCIAL

Transactions of specialists in stocks in

-

4.57

April 24

PRICE INDEX

FOR

TRANSACTIONS

ROUND-LOT

Public

18

April
April
April
April

—

OIL, -PAINT AND DRUG REPORTER
1949 AVERAGE =>100

Private

4.66

4.56

ASSOCIATION:

Percentage of activity
Unfilled orders ttons) at end of period
1

3.99

4.82

U.

irOtiflers received (tons)—

1

4.41

389.8

432,276,000
12,377,000

253,314,000

.

$263,335,000

338,711,000
12,570,000
170,631,000

111,173,000

!

$274,669,000

$1,053,747,000 $1,160,869,000 $1,529,247,000

GINEERING

4.87

4.41

72,274

329,239,000
11,795,000
70,099,000

March (000s omitted):
Total U. S. construction

4.59
™

57,822

203,641

on

4.47

vv

66,490

$278,127,000

goods stored and shipped between
foreign countries '^.4:

CIVIL

71,174
200,461

BANK

shipments

4.50

apih2<j
April 28

V Industrials Group
COMMODITY

4.178,493

OUT¬

OF NEW YORK—As of March 31:

4.91

April 28

Public Utilities Group

MOODY'S

5,027.794

79,918
74,296

(tons)

"

II

4.915,398

206,083

pounds)

period

BANKERS' DOLLAR

3.99

4.29

April -8

4.03

4.52

April 28

-——

—IIIIIIIIIIIIIIIIIIIIII

38,027

of

(tons

...

(tons of 2,000

Total

U. S. Government Bonds

A

28,789

March:

AVERAGES:

_

5,906

AMERICAN ZINC INSTITUTE, INC.—Month of

STANDING

April

--7"

Average corporate
Aaa

193

2,486

99.20

^—April 22
April 22

.

A a a.

1,806

2,797

:

11.500c

; April

—

10,795

—

.

April 22
——— April 22

—-

Group

25,019,000

February:
Intercity general freight transported by 363

April 22
—April 22

-—

Industrials Group

i

of

21.800c

—r—

MOODY'S BOND YIELD DAILY

24,569,000

319,387,006

42,509,000

-

15.0«|
31,747,000 "

35,487

23.750c

—

Group

25,52.7,000

357,898,000

-

ASSOCIATION, INC.—

31.775c

April

Railroad

212,810,000 :

undelivered

month)

30.200c

Aa

——
Baa"I__I—IIII—ZZI

238,052,000

35,000
33,434,000
33,955,000

,

36,226,000

and

29.175c

Aaa

^

4,262,935

export

cars

order

on

31.150c

—-—

——

ii

and

delivered

cars

cars

AMERICAN TRUCKING

AVERAGES:

DAILY

PRICES

BOND

Average corporate

+

248,000,000
221,210,000
26,755,000

*

(barrels).

29.100c

,_

U. Si Government Bonds—

6,186,168

March:

of

31.225c

i

(New York)

26,660,000
37,000
28,664,000
36,237,000
351,750,000

all

Month

ft■

————

at

250,623,000
223,926,000

(barrels)

gasoline output (barrels)
Benzol output (barrels)—
Crude oil imports (barrels)
Refined product imports
(barrels)

Increase

>

■.

each)

Indicated

6,254,622

*9,602,938

6,524,374

INSTITUTE—Month

,

April 22

at—

York)

Louis)

71,523

: "\T
'
.; "•%
production (barrels of 42 gal¬

—April 22

(.delivered) at
———
Zinc (East St. Louis) at
—
Aluminum (primary pig. 99.5% ) at

12,317
287,884

106,274

11,567,000

1

90.63

Lead

20,586
297,826

INSTITUTE:

Natural

5.967c

$66.41

V

--'V'V-.

fZinc

-

125

'

STEEL

PETROLEUM

Domestic

11.206,000

•-

AND

February

January:
lons

,,

refinery at..—
refinery at.

Export

..

137

12,709,000

21
April 21
—April 21

-

of

Orders

Domestic
.

130

April 23

■

QUOTATIONS):

J.

V

12.609,000

-

^'. V

IRON

371,724
*

16,207
329,668
98,434

(barrels)
"

&

—-

—:

..v""' /vV

copper—

132

unit

AMERICAN RAILWAY CAR INSTITUTE—

(per lb.)-.

METAL PRICES

'

12.538,000

s—April 2j

(per gross ton)

Scrap steel

165,987,000
% 46.234,000

i:'r '

(in 000 kwh.)__——.—

(COMMERCIAL AND INDUSTRIAL)

FAILURES

-

appliance factory

washer-dryers

Total domestic

'
•

AVERAG^ ^ 100..—April 18

EDISON ELECTRIC INSTITUTE-:
Electric output

$325,733,000

T935.000

DEPARTMENT STORE SALES INDE.tr-FE»ERAL RESERVE
:

laundry

Month of

1\J./.;

*7,985,000
336,000

424,686

March:

ingots and steel for castings produced
(net
tons)—Month of March...
Shipments of steel products (net tons)—

212,221,000

municipal——.—April 23

State and

of

Steel

113,512,000

175,500,000
135,000,000

173,100,000

312,500

444,309

Month

—

:

AMERICAN

April 23
April 23
April 23

329,100

therms)

(M

—

AMERICAN

56,794,000

engineering

—

8,749,300
8,409,400
27*400

(domestic)

Dryers

17,537,000

y

construction

home

sales

211,030,000
73,060,000

10,016,900
9,658,500
29,300

301,300

—

LAUNDRY MANUFACTUR¬

ASSOCIATION

Combination

'

-.Total U. S.

Ago

*

RAILROADS:

"

sales

gas

AMERICAN HOME

Washers

212,742,000

OF

.

6,267,835
7,051,000
24,531,000
1,918,000
10,901,000
6,495,000

Mixed

•'">

freight loaded (number of cars)
April 18
freight Teceived from connections (no. of cars)—April 18

Revenue

Yea*

Month

AMERICAN GAS ASSOCIATION—For month of

1,289,000

7,202,870
8,082,000

28,268,000

17

ASSOCIATION
L

*7,134,125
8,092,000

27,491,000

17

—

•

7,133,025

1i7,85.6,000

17
17

April 17

output (bbis.)
;
Kerosene output (bbls.1—
..
.Distillate .fuel oil output (bbls.)
Residual fuel oil. output (bbls.)—..„

of that dates]

Previous

Month

47 5

;

.Gasoline

»

'

are as

February:

April 17

Crude*runs
*

,

either for the

are

Latest

*

42

37.

(2017)

recoverable metals in the

fine ounces)

Silver

(in fine ounces)
Copper (in short tons)
Lead
Zinc

(in

short

tons)—

(in short tons)

UNITED

STATES

BUREAU

OF

—

EXPORTS

CENSUS

—

AND

IMPORTS

Month of Jan.:

(000's omitted):

Imports

'■

1.118,100

38

The Commercial and Financial Chronicle

(2018)

.

,

Thursday, April 30, 1959

.

★ INDICATES

Now in

Securities
Academy Life Insurance Co.

shares of common stock (par 30
cents) to be offered for subscription by common stock¬
holders on the basis of 0.525 shares of additional stock
for each share held of record April 24, 1959 (for a 20day standby). Price—To be supplied by amendment.
Proceeds—For additional working capital.
Office—405
Exchange National Bank Bldg., Denver, Colo. Under¬
writers—Boettcher & Co., Inc. and Bosworth, Sullivan
& Co., Inc., both of Denver, Colo.
March 31 filed 310,000

★ Adage, Inc.
April 17 (letter of notification) 3,300 shares of preferred
stock (par $10), convertible into common stock on a
share for share basis.
Price — $30 per share. Proceeds
—To retire demand note, purchase inventory, and equip¬
ment and for working capital. Office—292 Main Street,
Cambridge 424 Mass. Underwriter—None.
Adam Consolidated

•

Industries, Inc. (5/4-8)
$1,500,000 of convertible subordinated
debentures, due 1974. Price—To be supplied by amend¬
ment. Proceeds—For general corporate purposes. Office
—404 Fifth Ave., New York, N. Y. Underwriter—Dempsey-Tegeler & Co., St. Louis, Mo.
March

30

filed

Advanced Research

Associates, Inc.

1 filed 400,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,

Dec.

Williams, Widmayer Inc., Washington, D. C.

and

Agricultural Insurance Co.
March 23 filed 132,000 shares of capital stock (par $10),
to be offered in exchange for stock of Anchor Casualty
Co. at the rate of one Agricultural share for each Anchor
common share (par $10) and 11/10 Agricultural shares
Anchor $1.75 cumulative convertible
(par $10).
Office — 215 Washington
Street, Watertown, N. Y. Underwriter—None.
for

each

share

of

stock

preferred

Airtek

Dynamics,

Inc.

(4/27-5/1)

Price—$8

per share.
Proceeds—For additional working
capital and for repayment of bank and other loans. Of¬
fice
2222 South Figueroa Street, Los Angeles, Calif.
—

Underwriter—S. D. Fuller & Co., New York.
Alabama

Power Co.

(4/30)

April 3 filed $20,000,000 of first mortgage bonds due
1989.
Proceeds
For property additions and improve¬
ments. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers; Eastman Dillon, Union Securities &
Co.; Equitable Securities Corp. and Drexel & Co.
(jointly); Harriman Ripley &. Co.,. Inc. and Goldman,
Sachs & Co. (jointly); Morgan
Stanley & Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); The First
Boston Corp. Bids—To be received up to 11 a.m.
(EDT)
on
April 30 at office of Southern Services, Inc., 250
—

Fifth Ave., New York 17, N. Y.
Alaska Juneau Gold Mining Co.
29 filed 640,660 outstanding
shares

Dec.

of

common

stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,660 shares in the future.
Price—To

be

supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif.
Underwriter—Lester, Ryons
& Co., Los Angeles, Calif.

No public offering expected.

(par $1),
publicly and

431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued
by DeCoursey-Brewis
Minerals Ltd., the company's parent
(payment for the
by such debenture holders may be made by

shares

par

plus interest with premium

for Canadian exchange rate).

Purchasers will receive

common

stock purchase warrants

for cash

or

rate of

one

on

all shares purchased

for the 6%

debentures of the parent at the
for each five shares purchased.
Price—$1.25

per share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave.,

Alaska.

Anchorage,

Underwriter—To be named by amendment.

★ Alberta Municipal Financing Corp.
Alberta)

(Province

of

Canada)

(5/2Q)
April 29 filed $50,000,000 of 25-year sinking fund de¬
bentures, guaranteed as to both principal and interest
by the Province of Alberta. Price—To be supplied
by
amendment.
Proceeds—To be used towards the pur¬
chase

of

securities

of

New York.

Allied

municipalities, cities, towns and

PRODUCES MORE SALES!
You sell with greatest effectiveness

securities

get

or

services in the

the complete story from

to

both professional

you

advertise

your

Chicago Tribune. You

your nearest

;

Publishers,

can

Chicago Tribune

representative today. Why not call him right
away?




stock

ISSUE

Underwriter—

26

filed

Light Co. (5/5)
"XX
75,000 shares of cumulative preferred
Proceeds—For property additions and
Underwriter—To be determined by com-

•

.•

^

(par $100).

improvements.

bidding.Probable bidders: Lehman Brothers;
Blyth & .Co., Inc.,- and Smith, Barney & Co. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
petitive

> ;

y

Securities & Co.

Alscope Explorations Ltd.
t
26
filed
1,000,000 shares of capital stock, of
which 700,000 shares are to be offered publicly in the
United States, and 300,000 shares in Canada. Price—Re¬
lated to the then current market price on the Canadian

Boston

March

corporate

purposes.

Office

—

'

' '•/•.?/

y

(convertible trntilyApril,/ L 436^/^

1984,

^

>

Canada^/-.; 'r-y*;'' X

supplied fey' amendment!

;

tions and * improvements/

Bldg., Edmonton, Canada, Underwriter—-None in United
States; Forget & Forget in Montreal,

'■ rJ*;'.'•£/;•« '

,-X Arkansas-Western Gas Co.* (5/4-8)
April 6 filed $1,000,000 of sinking fund debentures due

Alexandra

303

/tie^receiyed-up^,t$j"il:&0:'■oti /

5Xt

May

Stock Exchange (31 cents per share on MarchTGL Pro-

general

(jointly); White, Weld & Co.; The First
Corp. and W. C. Langley & Co. (jointly^. Bids—•

Expected!;td

cecds—For properties, drilling costs* working capital, and /

Underwriters-^Snbwi/Sweeney

Proceeds—rFor property, addi¬

YCfrkv/S-'ir^f i -s tfc

American Agricultural Chemical Co. (5/4-8)
XX'X? X; Armstrong Uranium Cdrp^^Jf^
April 10 filed 216,093 shares of common/stock/(follow-:/
ing three-for-one stock split expected to become ef- J. mon
stock-(par one cent). Price — 10 cents per share.
fective May 5, 1959).
Price—To be.related to current .f Proceeds—For
mining expenses. Office—c/o Hepburn T.
market at time of offering.
Proceeds—For capital ex¬
Armstrong, Round Up 'Heights, Cheyenne, Wyo. Under- y
penditures. Office—100 Church Street, New York, N. Y.
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.'i.
Underwriter—Hayden, Stone & Co., New York.
Associated Bowling Centers, Inc." yX'-?''- y'feXXX X
American Asiatic Oil Corp.
Nov. 24 filed 300,000 shares of 20-cent cumulative con-. ;;
Nov. 24 filed 100,000,000 shares of capital stock. Price—
vertible
v

preferred stock (par one cent) and 50,000 out¬
Two cents per share. Proceeds—To selling stockholders. Z
standing shares of common stock (par one cent). ' The
Office—Magsaysay Building, San Luis, Ermita, Manila, "
preferred shares are to be offered for public sale for the
Republic of Philippines. Underwriter — Gaberman &
account of the company and the common shares will
Hagedorn, Inc., Manila. Republic of Philippines.
be offered for the account of a selling stockholder. Price •
American Buyers Credit Co.
—To be supplied by amendment. Proceeds—To acquire
Nov. 13 filed 5,000.000 shares of common stock, of which
new bowling centers and increase working capital
(part
to be used in
4,545,455 shares of this stock are to be offered for public y
defraying cost of acquisition of stoqk of
sale at $1.75 per share. [Shares have been issued or are
owner of a Brooklyn
(N. Y.) bowling center. " Office—
Issuable under agreements with various policy holders
135 Front St., N. Y.
Underwriter — To be named by
In American Buyers Life Insurance Co. and American
amendment.
Offering1—Exnected in two weeks.
: <
Life Assurance Co, (both of Phoenix) permitting them
• Associated Fund, Inc., St. Louis, Mo.
to purchase stock at $1.25 per share.Sales personnel
April 28 filed (by amendment) an additional 10,000 Full
have been given the right to purchase stock at $1.25
Paid Accumulative Trust Fund Certificates.
Price—At
per share up to the amount of commission they receive ;
market. Proceeds—For investment.
//rX/Xs',
;
X
on stock sales made by them,]
Proceeds—For the opera- y
(5/20) ^ v
tion of other branch offices, both in Arizona and in other /' • Associated Testing Laboratories, Inc.
states. Office—2001 East Roosevelt, Phoenix, Ariz. Un- ? April 22 filed 166,666 shares of common stock (par 10
cents). Price—$3 per share./ Proceeds—For capital ex¬
ierwriter—None.
penditures and general corporate purposes, including
American Growth Fund, Inc., Denver, Colo. '
/
working qapital.
Office—Caldwell, N. J.
Underwriter
Nov. 17 filed 1,000,000 shares of capital stock (par one
—George, O'Neill & Co., Inc., New TOrkXX.XXXX XX/XX.
cent).
Price—At market.
Proceeds—For investment.
• Atlantic Research
Corp., (5/4-8)*-'X><
Office—800 Security Building, Denver, Colo., Under- ;
March 31 filed 110,000 shares of common stock, of which
writer—American Growth Fund Sponsors, Inc., 800 Se- ;
100,000 shares are t6 be offered publicly and* 10,000
mrity Bldg., Denver 2, Colo.
■/•/;'/'j'I.XX/'VXXXy shares to employees under company's incentive plan.:
American Hospital Supply Corp. X
Price —To be supplied by amendment. Proceeds — To
reduce short-term bank loans and to provide equipment1
April 20 filed 20,610 shares ol' common slock (par $2) to
be offered in exchange for common stock of IVlassillon
for development and production of propellant rockets.* Rubber Co. on the basis of nine shares of American •
Office^—Alexandria, Ya. Underwriters-Johnston, Lemon
common for one.share of Massillon common.
Office— •
& Co., Washington,
XXXXXvX/XX XyXTX'V
2020 Ridge Avenue, Evanston, 111.
Underwriter:—None.
Atlas Investment Co.

XXXXX' XvX'r'X"X;-X XX'.'X

American
March

offered for

rate

of

shares of

514,500

subscription by

1.4

new

shares

for

each

one'

share

held

NEWSPAPER

V,

on

or

Feb.
mon

Australian

International

513

Trade

an

apartment hotel.

Office

•

second

trust

notes

and

construction

Automatic

mon

Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬

L, Cisco, Tex.

Cafeterias

Underwriter—None.
X
;
-

for

stock

—450

(par 10 cents); Price—$3 per share. Proceeds
expansion, equipment and working capital. Office
.Westbury Ave., Carle Place, L. I., N. Y. Under¬
\

writer—None.

'

Automatic Canteen Co. of America
March 2 filed 292,426 shares of common

'

r

stock, of which,

the company proposes to issue 126,072 shares to A.M.I.
Inc. for the latter's property and assets, and the re¬

maining 166,354 shares
of

stock

are

to be issued upon the exercise

options. Underwriter—None.
tive March 31'i:'.-??■ "iVX• *'' '

loans.

may develop shopping menters and build or
office buildings. Office—900 Woodward Bldg.,

■

par

—For

American Mutual Investment Co., Inc.
Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first"

notes,

•

Statement

effec¬

V;/

• Avnet Electronics
Corp.
April 17 filed 175,000 shares of common stock, of which,
75,000 shares are to be offered for the account of certain
selling stockholders. Price—$5.75 per share. Proceeds—

To

retire

presently outstanding loans, and the balance
for working capitai and other corporate
Offices—70 State St., Westbury, L. I., N. Y., and
5877 Rodeo Road, Los Angeles, Calif.
Underwriters —
Michael G. Kietz & Co., Inc. and Amos Treat & Co.,
Inc.,

dent.

will

•

purposes.

American Telemail

Service, Inc.
17, 1958, filed 375,000 shares of common stock (par
Price—$4 per share. Proceeds—To purchase equip¬
ment and supplies and for" working capital and other
corporate purposes. Office-—Salt Lake City, Utah. Un¬
Feb.

$1).

derwriter—Amos Treat &
drawn

underwriter.

as

Co., Inc., New York, has with¬

Change

Name

in

—

Formerly

United States Telemail Service, Inc.
Petroleum

&

Natural

Gas

Corp. Ltd.

filed 745,000 shares of capital stock

500,000 shares

are

(no par),
to be sold for the account

of the company, and 245,000 shares by the holders there¬
of.
Price—30 cents per share.
Proceeds—For explora¬

tion and

development program.

Office

—

2100 Scarth

v

7.-fX ■X./XX;.-.

Industry, Inc. (5/4-8)
April 17 (letter of notification) 100,000 shares of com¬

American M. A. R. C., Inc. (5/11-15)
April 13 filed 400,000 shares of common stock (par 50
cents).
Price—To be supplied by amendment.
Pro¬
ceeds—For expansion and working capital. Underwriters
—Auchincloss, Parker & Redpath, New York; and Wil¬
son, Johnson & Higgins, San Francisco, Calif.

Company

Statement effective April-

Robert Kamon is President.

Underwriter—Assets Investment Co.,
Louisiana.

trust

voting stock <(par
Proceeds —To purchase

common

share.

Grazing & Pastoral Co., Ltd.

Office—1301 Avenue

New Orleans 12, La.
Inc., New Orleans,

Mart,

per

shares of common1 stock." Price—
(56J/4 cents per share). Proceeds—To. purchase
cattle; for improvements;, to buy additional ranch in
Queensland, Australia; and for other corporate.purposes.
At

.

operation of

$25

13 filed 4,000,000

Jan.

Syndicate, Inc. •;«,
24 (letter of notification) 100,000 shares of com¬
stock
(par 10 cents).
Price—50 cents per share.

Proceeds—For
—

—

derwriter—None.

April 24, 1959. Price—To be supplied by amendcapital and surplus; Office
—307 S. Orange Avenue, Orlando, Fla^ Underwriters—
Francis I. du Pont & Co., Lynchburg, Va., and Goodbody
& Co., New York, N. Y.
;
; • XXV/,
/. •; '
Proceeds—To increase

Investors

50,000 shares of

additional contribution certificates of Great Basin Insur¬
ance Co.
Office—704 Virginia Street, Reno, Nev.
Un-v

about

American

Price

$10>.

stock, to be
stockholders at the

common

common

3 filed

Feb.

Independent Reinsurance Co., •(4/24K-

filed

25

Amican

GREATEST

REVISED

Arkansas Power &

Corp., Portland, Ore.

of which

WORLD'S,

ITEMS

Regina; Saskatchewan, Canada.

March

Inc.,

March 23

THE

PREVIOUS

Cumberland Securities, Ltd., Regina, Canada.

Portland, Ore. ;•?.
Nov. 28 (letter of notification) 22,000 shares of common
stock (par $1). Price—$8.50 per share.
Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment

ourchase

buyers and the general public when

Street,

ADDITIONS

SINCE

.

t

villages within the Province. Underwriters—The First
Boston Corp. and Wood, Gundy & Co., Inc., both of

ment.

Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200 shares of common stock
of which 1,000,000 shares are to be offered

delivery of debentures at

Registration

t

.

March 27 filed 150,000 shares of common stock (no par).

•

Vf

be

used

both of New York.

Ballard Aircraft Corp.
April 17 filed 300,000 shares of common stock (par $1).
Price
$3.25 per share.
Proceeds — To deve'op and
manufacture aircraft embodying the body lift
principle,
etc. Underwriter-^-Weil & Co., Washington, D. C.
—

Baltimore Gas & Electric Co. (5/8)
April 17 filed $19,925,500 of convertible debentures due
July 1, 1974 to be offered for subscription by common
stockholders of record May 7r 1959, on the basis of $100
principal amount- of debentures for each 35 shares of

>

•

Volume 189

^Number 5842

.

The Commercial and Financial Chronicle

.

.

(2019)

Alabama; Missouri, - and Tennessee.

Johnson^

{corpoFaf^pL&p^
t

Biophysical Electronics, Inc. (5/1)
«April 1 (letter of notification) 80,000" shares of

co^s^uction

;c;ing tempprary /bank
the samepur"*■
poses. Underwriter—The First Boston c6rp.;Ne\v York.

•

;•*> :

.

& Co.. New York.

St., Philadelphia 44y Pa. Underwriter—R. L. Scheinman
& Co., New York.-'

,

..

if Buckeye Corp., New York
April 28 filed 192,039 shares of 5% convertible preferred
stock, series A, (par $10) and 164,299 shares of common
stock (par $1). AH of the preferred shares and 98,299

•

v$1), of which 125,fk)p shares are to be offered publicly
and 133,740 shares to employee?*? pursuant to-stock purchase options^ Price—To putaic,$6pershare«* Proceeds— ;
; For expansion and other-eorporate purposes. Office—At-

^ Blyvooruitzicht Gold Mining Co., Ltd.
> "r.
(Union of South Africa) ;
April* 22 filed American depositary receipts for 80,000
ordinary registered' shares.' Depositary—Guaranty Trust

-

-

Underwriter—Noner.

;^nta,G#

'

—A

--'

;

;;

Co. of New

Bankers Preferred Life Insurance Co.

Jan. 39 (letter of. notiifcatfon)

•

r
•

100,000 shades Of common
stock (par $1.60:). .Price—63 per share*
Proceeds^—For
expenses, incidental to operation of an insurance company.
Office—Suite 619, E.
C. BIdg^ Denver, Colo.
Underwriter—Ringsby Underwriters,,: Inc., Denver *; 2,
Colo. "

•

Atomics

Inc.

shares of

stock will be issued in connection
acquisitions of businesses and assets; the
other 65,000 common shares are reserved for issuance
under Employee Restricted Stock Options. Underwriter

with

-

Bridgehampton Road Races Corp.
Oct. 23 (letter of notification) 15,000 shares of common
stock (par $l)/td ibe offered for subscription by stock¬
holders of record Nov. 1, 1958 on the basis of one new
share for each'ibur shares held; unsubscribed shares

^

•;*

Basic

Ybrkv^;'/^V<;

will be offered to

current creditors in payment of all
part of claims; at the rate of one share for each $4
of claims discharged; rights to expire about two weeks
or

-

-

March 5 filed 444,246

shares of common stock (par 10
cents). Price—At prevailing market price; in; the Overthe-Counter Market. Proceeds—To selling stockholders.

i

after

;

To

-Underwriter—None.

mailing of offer. Price—$4 p"* share.
creditors;

current

pay

Address

P.

—

Bridgehampton, L. I., N. Y. Underwriter

—

Proceeds—
O.

Box-506,
None. Offer¬

ing—Has been.delayed.- .*:•

Basic Materials, Inc.
'v;
April 9 (letter of notification)' 1,200*000 shares of common
stock (par 10 centsj.
Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.
-

.

'

Underwriter

Petroleums; Ltd.
March 30 filed 1,150,000 shares of capital stock of which
1,000,000 shares are owned by Wilshire Oil Co. of Texas
stockholders and 150,000 shares are issuable upon exer¬
cise of share purchase warrants, exercisable on or be¬

—

N.

•

Britalta

President, Arroyo Hondo, Santa Fe, N. Mex.
Hyder, Rosenthal & Co., Albuquerque,

Roberts,
'

:>:•

Mex.

fore

Dec. 31, 1960 at $5 per share.
Avenue, S. W„ Calgary, Canada.

.

•

Biilups Western Petroleum Co. (5/18*22 V;
April 1 filed $5,000,000 of 6% participating debentures
/ due May 1, 1984 and 1,000,000
to be offered in units of $10

/

"

of debentures and two
V shares of stock which will not be transferable separately
;
*.

Brookridge Development Corp.
19 (letter of notification) $200,000 of 6% 15-year
convertible debentures. Price—At par ($500 per unit)
Proceeds—For expansion and working capital. Office—
901 Seneca Ave., Brooklyn 27, N. Y. Underwriter —
Sano & Co., 15 William St., New York, N. Y.
)

v

The ,company is also registering

until Nov. 14, 1959.

50,000 shares of common stock, not included in the units,
which

will

offered

be

its

to

employees.

B. S. P. Co.'

Price—In the

,

Co

Inc.

,^.:vT..

:\:i\ (Offering

to stppkhold^rs—not .underwritten-) STd/POtt shares

Common

Biophysical Electronics, lhc.i_--_J.—
"v, (R. L. ficheinman & Ce.) $200,000

''Vf

;

..

'

.

;

Airtek
'•*. .;

;"

Co.)

$1,500,000

<s.rD.'

(Hagrden, Stone''Ss

;

$1.(K)0,000

Atlantic

j-:

-

..

;'

Coil

;

*

.

^

,

Edden

Earl

and

Co.)

El

Pioneer Plastics

$300,000

:M, Byltesby & Co., Inc.
1

DeJur-Amsco

Electra

Common

•

Plohn

("Charles

-

&

(Hallowell,
•

\Hess, Moyer & Co., Inc.)

Reon Resistor
!

&

,

Idaho

Co., Inc.;

(Blair &

•

Potomac

H. Walker: & Co. and Scherck, Richter
& co.) $30,000,000
^ 't- ■■
:■

Light Co

$7,500,000

(Bids to be Invited)

,

Loral

May 7

k

Idaho

$4,500,000

PAwer

(Blyth & Co., Inc., Lazard Freres & Co.. Kidder,
and Merrill Lynch, Pierce, Fenner & 3mith Inc.)

Co.

and Merrill

(Auchincioss,

& Redpath vand: Wilson,
Higgins) 400,000 shares

Century Brick Corp. of

America--

(Summit Securities, Inc. >„ $300,000




(Wednesday)
Debens.

(The First Boston Corp. and Wood, Gundy 3S Co., Inc.)
$50,000,000

Associated

Testing Laboratories, Inc.

*

Common

(George, O'Neill. & Co.,ma.) $499,998

Interstate

Power

Co-

;

..Bonds

-

May 21

(Thursday)

Consolidated Natural Gas Co.

Commas

(Offering to atockholdera—no underwriting) 821,250 abarea

(Monday)

Florida-Southern Land Corp..
(Alkow

Investment

3s

Co.,

Ine.)

Common
$4,000,000

Corp. of Florida

Common

(Aetna Securities Corp. and Roman 3s JohDson) $1,237,500

(Bids

Bonis
EDT)

noon

$14,000,000

(Tuesday)

(Bids 11 a.m. EDT) $75,000,000

May 28 (Thursday)
Southern Electric

Generating Co.

Bonis

;.

(Bids 11 a.m. EDT) $25,000,000

be

&

(Thursday)

May 29
Bank of

(Friday)

Commerce, Washington, D. C

Common

(Offering to stockholders) $300,000

June 2

(Tuesday)

Public Service Electric & Gas to

Debentures

(Bids to be Invited) $50,000,000

Common

(Bids to be invited) 781,000 shares

—Equip. Trust Ctfs.

invited-)

June 3

$2,400,000

Florida Power &

(Friday)

(Wednesday)

Light Co

Bonds

(Bids 11 a.m. EDT) $25,000,000

Lynch, Pierce, Fenner 3s Smith, Inc.)

May 18
(The Johnson. Lane.

Peabody & Co.
150,000 shares

-

Electronics

Capital

<

(Monday)

Common

Corp

—Preferred

Power

Co
Peabody & Co.)

Levine's, Inc.

-Common
Johnson

New

Co.)

110,000

Common
shares

Hampshire Ball Bearings, Inc.——-Common
(Kidder,

3c
Precon

Common

Peabody 3s

Peabody

3s

Co.,

Electronics Corp

Inc.)

(Tuesday)

Co.

Preferred
to

be invited) $25,000,000

(Tuesday)

United Gas Improvement Co

Bonis

(Bids to be invited) $10,000,000

June 23

(Tuesday)

Northern Illinois Gas Co.
(Bids to be invited) $20,000,000

$4,000,000..

_______

(Kidder,

Power

June 16

Debentures

Space Corp.) $5,000,000

(Kidder,

Interstate

June 9
Duke

(Bids

(Hayden, Stone 3s Co.) $12,000,000

$19,925,500

Parker

250,000 shares

Virginia Electric & Power Co

Biilups Western Petroleum Co.

(Friday)

Mky 11 (Monday)
-American M. A. R. C,, Inc

Common

to be invited)

May 20

Common

703,485 shares

'

Baltimore Gas & Electric Co
Debentures
(Offering to stockholders—underwritten by The First" Boston
Corp.)

02,000,000

u

Power Corp.—
Common
(Offering to stockholders—underwritten by Kidder, Peabody 3s

Co.„_-r—r_J——Common

May 8

to

shares

(Thursday)

Preferred

-

11 ftjn. EDT)

Florida

Peabody & Co.

250,000

(Bids

Alberta Municipal Financing Corp.

EDT) $15,000,000

ami.

May 15

Corp.r^r——
—Common ;
and Model, Roland'& Stone)

Electronics

'(Kidder,

Bonis
$3,500,000

States Utilities Co

Debentures

Chesapeake & Ohio Ry:

.

(Bids

■

Gulf

June 25

(Thursday)

Mississippi Power Co
(Bids

to be invited)

$5,000,000

126,000 shares

Common

(Charles Plohn & Co. and Netherlands Securities Co., Inc.)
$875,000

September 10 (Thursday)
Georgia Power Co.
(Bids to be invited) $18,000,000

1

40

Consolidated Edison Co. of New York, Inc.—Bonds

Electric Power Co

May B (Wednesday)
Great Northern Ry.---------—Equip/Trust Ctfs.
•

.•

(Tuasday)

El Paso Electric Co

Bonds

(Wednesday)

May 14

—Preferred

(Bids 11:30 a.m. EDT)

page

$16,000,000

(Offering to stockholders—underwritten by Dillon, Read
Co. Inc. and Johnston, Lemon 3s Co.) 1,182,077 shares

May 5 (Tuesday)
Arkansas Power &

on

465,000 shares

Debentures

G.

a;,;,v,,.

CDT)

a.m.

Marine Midland Corp.Common
(Offering to stockholders—underwritten by The First Boston
Ccrp.; Eastman Dillon, Union Securities 3s Co.; Hutton &
Pomeroy, Inc. and Granbery, Marache 3s Co.)

(Charles Plohn & Co.) $300,000

—

11

'

■

/<•

West Penn Power Co

Bonds

(Bids

Seaboard Plywood & Lumber Corp—^—Common
'^5 Co.) $450,000
^
—

150,000 shares

Co

Power

,

Common

Corp.————

Textron,. Inc.

May 39

(Eastman Dillon,

and Woodcock,

Co.

$125,000

'

Electric Co_

(Offering to stockholders—may be underwritten by
Union Securities & Co.) $10,038,700

Common

Kfrkland

Jehks,

Sulzberger.,

-:.

Inc.)

Central Illinois Light Co.___

$270,000

Co.)

Krupp Manufacturing Co.—

Common

—

May 13

Common

.

Continued

May 26

Inc.) 225,000 shares

Networks, Inc.__—

Corp

10:30

(Bids

'

'•

'

May 25
Common

Electric Power Co

Southwestern

)f $1,000,000

'

Corp.

IB, M: Bylleshy & Co.,

•'

(Tuasday)

Co.——

(Reynolds & Co.,

Common

———

100,000 shares

Corp. add Estabrook & Co.)

Electric

Paso

»

Corp.

'

Bonds

1
$5,500,000

(Offering to stockholders—underwritten by Stone 3s Webster
Securities Corp.) 76,494 shares

Inc..——————Common
Bros,

(Bertnar

'•

(Bid* 11 ami. EDT) $6,000,000

Common
May 12

Cafeterias for Industry, Inc.—Common
not undcrivriiteri) 100,000 shares; .

Winders,

jpower Co.

(Bkte 9 a.ttli. PST)

Higginsoh

(Lee

(Offering

DeJur-Amsco

W.

75,000 shares

Corp.)

(Lee Higginson

(Johnston, Lemon & Co.) 110,000 shares

•

—Common

Tracerlab; Inc.

•

Corp.-^_:_-----:l--iCommon

Research

Automatic
.

: •' >'•

>

1974, to be offered for subscription by common stock¬
holders of record May 12, 1959, on the basis of $100 of

and Roman & Johnson) $525,000

Corp.

Southern Nevada
;

(Snaw, Sweeney & Co« Inp7and A. C. Allyn & Co., Inc.)
.'j&hrr-',

Securities

v.""-'
;

-Debentnres

Arkansas; Western GaSrjC1

Common

Pittsburgh Standard Conduit Co

^^^Common

Co.)-2l6;093 shares

Preferred & Common

Extruders, Inc.—

(Aetna

Fullerj 150,000"draresv'...:

AmericanAgriculturalChemicalCo,
.

;

Miami

(5/13)

debentures for each 22 shares then held; rights to expire

-Common

(Joseph Walker &; Sons> and -Clark, Landstrfcet & Kirkpatrlck,
ine.)
$1,400,000 '

(J. Bartb & Co.) $6,300,000

Dyhamicsv IncV---^---^_-V__----i_Cwninon

r.

-

Magma Power Co....—

Industries^ Inc.-1.-Debentures

(DempseyiTegeldi* •

.

^Central Illinois Light Co.

April 23 filed $10,038,700 of convertible debentures due

((Bids

—-^

Lytle Corp.

-

.

Adam Consolidated4-

Denver, Colo.

-

Debentures

(Blyth & Co., Inc.) $15,000,000

V

,

Address—P. O. Box 1849, 3720 B.
Underwriter—L. A. Huey Co.,

32nd Street, Yuma, Ariz.

(Bids 11 son. EOT)

(Blair & Co., Inc.) 98,946 shares •'

/ General American Oil Co. of Texas

.

-v;

For working capital.

El Paso

Common

-

—

.'7;

"Montreal-^Common

of

Cemex of Arizona, Inc.

Nov. 17 (letter of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds *

Common

Stores, Inc.

Echlin Manufacturing Co. of Connecticut,

■■ ■

(Friday)

Way. 1
Bank

-

Bonds

EDT.). $20,000,000

a.m;

★ California Rock & Quarry Enterprises, Inc. '
April 16 (letter of notification) 250,000 shares of com¬
mon
stock. Price—At par ($1 per share). Proceeds—
For ground lease and buildings, operations, fixtures and
working capital. Office—3927 S. El Camino Real, P. O.
Box 174, San Clements, Calif. Underwriter—None.

CALENDAR

ISSUE

Crown Self-Service

/

if Business Credit Co.
April 14 (letter of notification) $80,000 of 10-year 10%
subordinated interest bearing promissory notes; $80,000
of five-year 9% subordinated interest bearing promis¬
sory notes and $80,000 of three-year 8%% subordinated
interest bearing promissory notes to be offered in unite
of $1,000 each. Price—All at face amount. Proceeds—
For general business purposes and expansion.
Office—
10 N. Clark Street, Chicago 2, 111. Underwriter—None.

(Charles Plohn & Co.) $1,250,000

J

—

'j'/ (Bids 11

0

(Thursday)

April 30
Power

•

shares, being offered in units, each unit consisting of
one share of stock and one warrant, for subscription by

NEW

Alabama

1

March 26 filed 113,079 shares of capital stock (par $1)
and warrants for-the purchase of an additional 113.079

neighborhood of $22 per unit. Proceeds—To be used in
acquisition, of substantially all the assets of 39 corpo¬
rations and a partnership engaged in the operation of
*; 195 gasoline stations in Mississippi, Texas, Louisiana,

common

certain

—None.

Office—630 Eighth

Dec.

sharesr.p/ comi^n .Stock

stockholders Of record April 21, 1959, at the rate of on*
unit for each three shares then held; rights to expire on

May 6 (the warrants carry an initial exercise price of
$20). Price—$17 per unit. Proceeds—For working capital
and other corporate purposes. Underwriter—Sutro Bros.

common

stock (par 10 cents). Price—$2.50 per share. Proceeds—
i For general corporate purposes. Office—20 East Herman

Insurance Co. ',>*/' ■#*;.
Feb. 28,1958ifiled 258,740. shares of common stock (par
Bankers Fidelity Life

Underwriter—The

1

Spaee;Cp^;Savannah, Ga. '•/ :'i

39

The Commercial and Financial Chronicle

40

Continued
on

Proceeds

Price—100% of principal amount.

Mav 27.

Francisco.

Diversified Inc.,
Jan. 6 filed 300,000

*

Natural Gas Co., New York
April 28 filed 821,256 shares of capital stock to be of¬

York.

May 21.

Price

—

(5 11-15)
shares of common
€tock.
Price—$2 per share.
Proceeds—To be added to
general funds ci the company. Office—1020 G. Daniel
Baldwin Building. 1005 State Street. Erie, Pa.
Under¬
writer—Summit Securities, Inc.. New York, N. Y.

Proceeds—Additions

to

Century Brick Corp. of America
Abril 6 (letter of notification) 150.000
<1

Chadbourn Gotham, Inc.

of 5.90% convertible subordin¬
April 1, 1971 (with warrants to

if Consolidated

fered

due

debentures,

ated

purchase 300,000 shares of common stock) being offered
for subscription by common stockholders at the rate of
$100 principal amount of debentures (with warrant for
purchase of 10 shares) for each 68 common shares held
us of record April 29.
1959; rights to expire on May 13,
1959. Price — At par.
Proceeds—To provide additional
working capital to finance the company's expanding
business and will currently be applied tb. the reduction
of short-term bank loans. Underwriter—R. S. Dickson &
Co., Inc.. Charlotte. N. C., and New York, N. Y. Offering
—Expected today./

•

.

••••

t

Chattanooga Industrial Development Corp.
.March 25 filed 37,500 shares of common stock. Price—

$20 per share. Proceeds—For purchase and development
of industrial properties and for working capital. Office
—Chattanooga.

Underwriter—None.

Tenn.

Chemical Milling

International Corp.

.

;

(letter of notification) 150,000 shares of comPrice—$2 per share. Proceeds
general corporate purposes. Office—Los Angeles,
Calif. Underwriter—Aetna Securities Corp., New York.
stock (par 10 cents).

—For

Offering:—Expected
Clute Corp.

today.

.w-.

.

---

•,>

•

7

Aug. 21 (letter of notification) 300,000 shares of common'

Price—$1 per share. Proceeds—To
IPay additional costs of construction; and for retirement
of'obligations and working capital. Office — c/o John
fHarlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell. Murphy & Co., Inc., Denver, Colo.
utock (par one cent).

Coastal

March

States

filed

31

Life

Insurance

shares

74.728

of

Co.

(5/12)

common

stock

(par

$1.25). Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Office—Atlanta, Ga. Under¬
writers—The Johnson, Lane, Space Corp. Savannah, Ga.;
end Waist on & Co., Inc.. New York.
•

Coil

Winders, inc. (5/4-8)
April 7 (letter of notification) 150.000 shares of com¬
mon stock (par 20 cents).
Price—$2 per share. Proceeds
—For machinery unci equipment, to retire loans and
notes; for research and development; and working cap¬
ital. Business—Manufactures components for U. S. Gov¬
ernment and the electronic industry.
Office—40 New
York

Avenue,

Bros, and

Earl

I Colorado

Westbury, ,N. Y.
Edden

Water

Underwriters—Bertner

Co.. both

&

of New York.

Power Co,

Feb, 25

(letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common
ctock (par $1) to bfe offered in units of $200 of deben¬
tures and one share of stock.
Price
$205 per unit.
'Proceeds—For working capital.
Office—Suite 421, 901
Sherman Street, Denver, Colo. Underwriter—Associated
Securities 412 Main Street, Cedar Falls, Iowa.
—

Commerce Oil

Refining Corp.
Dee. 16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 oE subordinated debentures due
Oct. 1, 1968 and 3,000.000 shares r4 common stock to b?
•offered in units as follows; $1,000 of bonds and 48 sharei
•of stock and $100 of debentures —d nine shares of stock
Price—To be supplied by amendment.
Proceeds —. T<
construct

York

refinery.

Underwriter—Lehman Brothers. Nev

Offering—Indefinite.

or

to

be

issued

certain

to

officers

and

key

Commercial Investors Corp.
Nov. 23 (letter of notification)
900,000
mon

siock.

Lake

Price—At

shares of com¬
(10 cents per share). Pro¬
Office—450 So. Main St.; Salt

par

investment.

City, Utah. Underwriter—Earl
City, Utah.

J.

Knudson

& Co.

Salt Lake

—

N.

Y.

Underwriter—^.dams & Peck.

N. Y.

;••••

if Consolidated Edison Co.

April 24 filed $75,000,000
gage

retire
be

used

toward

bank

of first

the

cost

loans

Equipment Rentals. Inc.
April 20 (letter of notification) 300,000 shares of com¬
mon stock
(par 50 cents). Price—$1 per share. Proceeds
—To be used to purchase trailers. Office—U. S. National
Bank Bldg., Denver, Colo. Underwriter—None.
Continental Tobacco Co.,

York,

York

refunding mort¬

1989.

Proceeds—To

$27,000,000,

and

also

company's construction

Underwriter—To be determined bv competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; The First Boston
Corp. Bids
tive

to

be

received, up

to

11

a.m.

(EDT'

on

if Consolidated Electrodynamics Corp.,
Pasadena, Calif.
29 filed $7,616,500 of convertible
subordinated

April

debentures due June 1, 1984, to be
offered lor subscrip¬
tion by common stockholders in the
ratio of $100 debentu-e? for each 14 shares of common.
Price—To be sup¬




Inc.
100,000 shares of com¬

of notification)

(letter

2

stock

mon

(par 10 cents).

Price—$1.25 per share.

Pro¬

general corporate purposes. Office—607-12tn
Huntington, W. Va. Underwriter—Best Secu¬

Avenue.

A

Mining Corp. Ltd.

April 17 filed 260,000 shares of common stock. Price—
80 cents per share. Proceeds—For exploration program.
Office—2100 Scarth St., Regina, Saskatchewan, Canada.
Underwriter — Cumberland
Securities
Ltd.,
also
of

Regina.

y-

-

'■

^

'

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding shares of common
stock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders.
Office—145 Conklin

Price—$5 per unit. Proceeds—For establish¬
proposed new stores, to pay accounts payable
(trade), to be applied to extinguish long- and shortterm loans, and the balance to increase working capital.
Office—368 E. 87th Street, Chicago, 111.'UnderwriterCharles Plohn & Co., New York.
7%
of

Cryogenic Engineering Co.

;,r

7.

Sept. 22 (letter of notification) 150,000 shares of class a
common stock (par 10 cents).
Price—$2 per share. Pro¬

plant and
office equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.;
1740 Broadway, Denver, Colo. Underwriter—L. A. Huey
Denver, Colo.
For repayment of loan; purchase of

Inc.
1
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For working capital. Office—Mearns Bldg., 142-148 N.
Washington Ave., Scranton, Pa. Underwriter—Sano &
Co., New York, N. Y.

Cycon,

March 25

stock

mon

Dalton Finance,

March

filed

9

Inc.

$500,000 of 7%

best efforts basis.
C.

Transit System,

Inc.

(Del. f)
March 23 filed 350,000 outstanding shares
of class A
common
stock (par 20 cents) being offered by Trans
Caribbean

Airways, Inc., which

owns

all of this stock,

to the holders of its outstanding

of

ers

its

outstanding

class A stock, and hold¬
convertible subordinated

5l72%

debentures of record April 22, on the basis of one share
of class. A stock for each three shares of the class A
stock of Trans Caribbean which such holders either hold
as

stockholders

version

or

their

of

a

Investment

—

best efforts

basis.

(letter of notification) $123,000 aggregate lim¬
partnership interests to be offered in units. Price—
per unit.
Proceeds—For production and turning
to account of all rights held by the
partnership in the
play entitled 'The Dybbuk From Woodhaven." Office—
200 W. 57th St., New York, N. Y.
Underwriter—None.
ited

•

Echiin

Manufacturing Co. of Connecticut, Inc.

J, (5/11-15)
April 21 filed 98,946 shares of common stock, of which
shares are to be offered for the company's ac¬

count, and the remainder for selling stockholders. Price
—To be supplied by amendment. Proceeds—To construct
plant and for general corporate purposes. Office—Bran-*

ford, Conn. Underwriter—Blair & Co., Inc., New York.
Eckert

to which

they

debentures

privilege): rights to expire

are

Mineral

Research, Inc.

(letter of notification) 150,000 shares of com¬
mon stock
(par 50 cents); Price—$2 per share. Proceeds
—For mining and selling of ore. Office—110 E. Main
St.,
Florence, Colo.. Underwriter—Harris Securities Corp.,
New York, N. Y.
%■;/':

entitled

upon

Paso Electric Co.

con¬

(with an oversubscription
May 22.
Employees of

on

filed

16

$3,500,000

(5/19)
of first

mortgage bonds due
Proceeds—To retire outstanding short-term notes,

1939.

and for 1959 construction program. Underwriters—To be
determined by competitive bidding^
Probable bidders;

Halsey, Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co.; White, Weld & Co. and Shields & Co.
(jointly) Equitable Securities Corp,.. and R. W. Pressprich & Co.* (jointly). Bids—To be received up to 11
a.m.
(EDT) on May 19 at 90 Broad Street/New York;
N.

%/.%:;/ ■£"■V777-A
El

Paso

Electric Co.

(5/19) ;
'"'Vi
20,000 .shares of cumulative,, preferred
(no par). Proceeds—To retire outstanding short-

April

16

stock

filed

term notes, and for 1959 construction program.
writer— To
be
determined by "competitive

Under¬

bidding.
Dillon, Union Securities &
Co.;
Salomon
Bros.
&
Hutzler;
Kidder,
Peabody
& Co., and White, Weld & Co.
(jointly); Merrill Lynch,

Probable

bidders:

Eastman

Pierce. Fenner & Smith.
a.m.

(EDT)

Bids—To be received up to 11

May 19 at 90 Broad

on

Street, New York,

N. Y.
El

Paso

Electric Co.
(5/12)
April 16 filed 76,494 shares of common stock
be

subordinated debentures,
due Jan. 2, 1974, with attached warrants for the pur¬
chase of 100,000 shares of class A common stock.,Price
—At face amount (in units of $500 each). Proceeds—To
finance making of additional loans and to reduce shortterm debt.
Office—3800-34th St., Mt. Rainier, Md. Un¬
derwriter—Paul C. Kimball & Co., Chicago, 111., on a

D.

Underwriter
on

$2,500

El

warrants.

—

business, and balance to be

April 24

April

(5/11-15)

Stores, Inc.

April 1U filed 250,000 units, each unit consisting of one
share of common stock and two common stock purchase

ceeds

finance

working capital.
Co., Denver, Colo.,

if Dybbuk Co.

Underwriter—None.

Ave., Binghamton, N. Y.

■y;

consumer

for

March 27

■

March

ment

of

used

22,500

rities. Inc., New York.
Cree

Under¬

City. Mo.

Amarillo, Texas
shares of common stock (par 50
Price—$3 per share. Proceeds—For acquisition
undeveloped real estate, for organization or acquisi¬

tion

ceeds—For

offered

1959,
of

to

common

the basis of

on

common

stock

stockholders

one

then

new

held

privilege); rights to expire

of

(par $5) to
May 11,

record

share for each 25 shares

(with

oversubscription

an

May 26.

Price —To be
supplied by amendment. Proceeds—To retire outstand¬
ing short-term notes, and for 1959 construction program.
Dealer-Manager — Stone & Webster Securities Corp.,
on

New York.

Electric City Supply Co.
April 6 (letter of notification) 300,000 shares of class A
common stock (par 25
cents). Price—$1 per share. Pro¬
ceeds—For

inventory, equipment, working capital, etc.

Office—90 L S. Lake Street, Farmington, N. Mex.
writer—Investment Service Co., Denver, Colo.
•

Electro

April 2

Networks, Inc.

Under¬

(5/4-8)

(letter

of notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$2.70 per share. Pro¬
ceeds
To purchase test equipment, and for
general
working capital.
Office—1920 Park St., Syracuse, N. Y.
Underwriter—Charles Plohn & Co., New York, N. Y.
—

if Electronics Capital Corp., San Diego, Calif.
(5/18-23)

to purchase up to 100,000 of the said 350,000

April 27 filed

shares. Price
—$10 per share.
Proceeds—To selling stockholder. Of¬
fices—160 Central Park South, New York 19, N. Y., and
3600 M St., N. W., Washington, D. C. Underwriter—None.
•

DeJur-Amsco

(5/4-8)
shares of class A stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
selling stockholders. Underwriter—H. M. Byllesby & Co.,
Inc., New York and Chicago.
Corp.

March 31 filed 225,000

•

DeJur-Amsco Corp.

March

3.1

filed

ment.

due

Proceeds

$1,000,000

of

convertible

subordinated

Price—To be supplied by amend¬
To retire mortgage loans and bank

1974.
—

notes and to

provide additional working capital and for
general corporate purposes. Underwriter—H. M. Byllesby
&

1,200,000 shares of common stock.
Price
—$10 per share. Proceeds—For investment. Underwriter
—Hayden, Stone & Co., New York.
Emerite Corp.
/an.

19

(letter of notification) 250,000 shares of series 3
stock (no par) to be offered for
subscription
by stockholders on the basis of one share of series 3
stock for each three shares of series 1 and/or
series 2
:ommon

:ommon

Co., Inc., New York and Chicago.

held; unsubscribed shares to other stock¬
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capital.
Office—333 S. Farish Street,
Jackson, Miss. Underwriter
—None.

Empire Mill work Corp., Corona, N. Y.
April 17 filed 95,000 outstanding shares of common stock
Price
$10.25 per share.
Proceeds
To selling stock¬
holders.
Underwriter—None.
—

Derson Mines Ltd.

Pries—Si

share. Proceeds—Fbr new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada* and Em
oorium, Pa. Underwriter—None.

i^Di-Noc Chemical Arts, Inc.
April 8 filed $947,200 of 512% convertible subordinated
debentures, due May 15, 1971, to be offered for subscrip¬
tion by common stockholders in the ratio of $100 of de¬
bentures for each 30 common shares held on April 28,
1959; rights to expire on or about May 14. Price—To be
supplied by amendment. Proceeds—For plant expansion
and working capital.
Underwriter—Blair & Co. Inc.,
York.

—

^Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a
year for annual premium
contracts

and

contracts.
16th

New

stock

holders.

(5/4-8)

per

(5 26)

program.

—Expected
May 26.

Aorii

June 5 filed 350,000 shares of common stock.

and

1,

of

of-the

New

7

of New

bonds, series P, due June
short-term

Underwriter—None.

Co., Inc., Kansas

:ents).

Service

• Continental

debentures

ir Computer Systems, Inc.
April 21 (letter of notification) .100,000 shares of com¬
mon sTock
(par 10 cents). Price—$3 per share. Proceeds
—For working capital.
Office
611 Broadway, NewYork.

To be supplied by amendment.
Treasury funds and to finance

em-

ployees of the company and its subsidiaries under the
company's Employees* Restricted Stock Option Plan.

ceeds—For

1959.

writer—Midland'Securities

Trans Caribbean and its subsidiaries will have the right

if Commercial Credit Co.
April 2.3 filed 118,100 shares of common stock, issuable
upon exercise of options to purchase common stock is¬
sued

stockholders of record

l-lor-10 share basis to

a

•-Crown Self-Service

April 3

4*1011

on

construction.

'March 26 filed S3,000,000

-9

Thursday, April 30, 1959

.

.

Broadway, Kansas City, Mo.

ers.

including the repayment of
fjiort-term bank loans incurred for such purpose.
lnderwriter—Eastman Dillon. Union Securities & Co., New

e

Office—911

plied by amendment.
Proceeds — To pay bank loans.
Underwriter — Blyth & Co., Inc., .New York and San

from page 39

-—For construction program,

9

.

(2020)

None.

no

less

than

$1,500

for single premium

Proceeds—For

investment, etc. Office 2480
Street, N. W., Washington, D. C. Underwriter—
•

^

""

-

■

Eurofund, Inc.
Feb. 26 filed 2,500,000 shares of

common stock
(par Sl).
share. Proceeds—For- investment. Office
Wall St., New York.
Underwriter—Glore, Forgan
& Co., New York.
Offering—Temporarily postponed.

Price—$20

per

—14

-

Federated Corp. of Delaware
Dec. 29 filed $918,000 of 6% convertible

subordinated

ir DIT-MCO, inc.

iebentures

April 15 filed 30,000 outstanding shares of common stock.
Price—$10.50 per share. Proceeds—To selling stockhold¬

1210,000 of the debentures to purchase the capital stock
if Consumers Time
Credit, Inc., a New York company

due

1968.

The

company

proposes

to

offer

Number 5842

Volume 189

.

.

.

$442,000 of the debentures in exchange for Consumers
debentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries
of Federated. Office—1 South Main Street, Port Chester,
Underwriter—None.

N. Y.

Finance

Federated

17

Nov.

Co.

(letter of notification! $300,000 of 10-year 6%

Price—At par (in de¬
each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha, Neb.

aenior subordinated debentures.
nominations

of $1,000

Finance For Industry,

Inc.
Dec. 16 filed 200,000 shares of class A common stock.
Price—At par ($1.50 per share). Proceeds—For working
capital. Office—508 Ainsley Bldg., Miami, Fla. Under¬
writer
R. F. Campeau Co., Penobscot Bldg., Detroit,
—

notes, and the balance, if any, will be added to
working capital, to be used in part to reimburse the

sory

Florida Builders,

Inc.
Dec. 1 filed $4,000,000 of 6% 15-year sinking fund sub¬
ordinated debentures and 40,000 shares of common stock,
to be offered in units of $100 principal amount of deben¬
tures and one share of common stock. Price — $110 per

General Merchandising Corp., Memphis, Tenn.
18 filed 250,000 shares of class "A" common stock
(par one cent).
Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
Feb.

writer

•

—To pay

notification) 225,000 shares of com¬
(par 25 cents).
Of the total, 195,000

to be offered for the account of the company

are

*

.1

share.

debts, acquisition of investments, and for general pur,
poses.
Address—P. O. Box-348, Albany, N. Y. Under-_

Inc., Pine Bluff, Ark.

will

be

applied

to

New York.

Glickman Corp.

•

•

of

shares of common stock (par $1)
viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held (1,by

company

334,570 shares are now outstanding); (2) to holders of
common
stock (par $1.50) of Government Employees
Life Insurance Co., on the basis of V/z warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of Vz warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted into common stock prior to the record date,

138,175 shares of com¬
per share).
Proceeds—
For mining expenses. Address—Route 1, Box 2, Repub¬
lic, Wash. Underwriter—None.

a

total of 164,733 common

Price—$3

per

share.

shares

Proceeds—For general corporate purposes,
.

"

<

of

common.

Hickerson Bros. Truck Co., Inc.
March 11 (letter of notification) 285,000

shares of com¬
Proceeds—To
pay existing liabilities; for additional equipment; and
for working capital.,
Office—East Tenth Street, P. O.
\ Box 68, Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo.
stock.

mon

Price—At par ($1 per share).

Highway Trailer Industries, Inc.
24 filed 473,000 outstanding shares

shares would be outstanding.

Bldg., Wash¬

ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.
•

of

common,

cents). Price—At prices generally prevail¬
ing on the American Stock Exchange.
Proceeds — To
selling stockholders. Office — 250 Park Avenue, N. Y.
i

* Hines (Edward) Lumber Co.
April 27 filed 60,000 shares of common stock, for offer¬

ing

to employees and officers of the
options or for outright purchase.

company

under

stock

(P. N.) & Co., St. Louis, Mo.
132,500 outstanding shares of common
stock. Price—To be supplied by amendment. Proceeds—To selling stockholders. Underwriter—Newhard, Cook &
Co., St. Louis, Mo.
*Hirsch

April

29

filed

,

Hoffman Motors Corp.

of

March 9 filed 260,000 shares

common

stock (par $1),

shares are to be publicly offered and
10,000 shares to officers and employees. Price—$10 par
shares to public; $9 to employees. Proceeds—To selling
stockholder.
Underwriter — For public offering: Vaa*
of which 250,000

Alstyne, Noel & Co., New York.
indefinitely.

Jjpoceeds—For capital and surplus.

Office—Government Employees Insurance

.

To repay

.

Underwriter—None. :

Nov. 13 filed 2,500,000

Mines, Inc.
April 13 (letter of notification)
mon
stock.
Price—At par ($1

York.

in

to be offered

Fouress

Bldg., Dallas, Tex. Underwriter—Blyth & Co., Inc., New

(letter of notification) an estimated 500 shares
stock (par $5). Price—At the market.
Pro¬

Government Employees Variable Annuity Life
Insurance Co.

Ga. Underwriter—None. Statement effective April 2.

—

stock (par 25

Fluorspar Corp. of America

stock to be of¬
unsold portion
to be offered publicly. Price—$12.50 per share. Proceeds
—To repay notes.
Office—515 Candler Bldg., Atlanta,

Proceeds

par.

Nov.

Feb. 5 (letter of

Jan. 13 filed 231,988 shares of common
fered for subscription by stockholders;

At

^ Hermes Electronics Co., Cambridge,"Mass.
29 filed 150,000 shares of/ common stock.
The /
statement also includes 36,755 shares of common stock ;
issuable upon the exercise of options; and 147,564 shares
issuable upon the exercise by holders of $5 cumulative
preferred stock to convert such stock; 20,000 shares*,
issuable upon the exercise of the rights of holders of
5% 10-year sinking fund debentures due 1965 to con- * *
vert such debentures, and 737,374 of presently outstand¬
ing shares which may be offered by holders thereof.
■Name Change—This company was formally known as >
Hycon Eastern, Inc. Price—To be supplied by amend¬
ment.
Proceeds—To be used in part towards the pre¬
payment of notes and balance to be used for general
corporate
purposes.
Underwriter—C. E. Unterberg,,
Towbin & Co., New York, will underwrite the 150,006

stock dividend (4%) declared March 25, 1959.
Office—1021 14th St., N. W., Washington, D. C. Under¬
writer—None. Statement subsequently withdrawn.

Foundation Investment Corp., Atlanta, Ga.

—

April

common

ing

notification—as amended) 300,000 shares
of common stock. Price—At par ($1 per share). Pro¬
ceeds—For mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.

Price

Hollogen Products, Inc. •'.-'■■•
• ^
Oct. 22 (letter of notification) 28,800 shares of commoa
stock
(par $1).
Price—$5 per share. Proceeds—For
payment of past due accounts and loans and general
working capital. Office-— 35-10 Astoria Blvd., L. I. C»
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11 Broadway, New York 4, N. Y.

ceeds—For the benefit of fractional shareholders result¬

loans, and for additional working capital. Underwriters
—McDonald & Co., Cleveland, Ohio; and Kidder, Peabody & Co., New York.

including repayment of some $2,500,000 of bank loans;
and for additional working capital.
Office—Meadows

Blvd., Inglewood, Calif. Underwriter—

Government Employees Corp.

April 7

rights to expire on May 6. Price — 100% of principal
amount.
Proceeds — To retire existing long-term bank

amendment.

York, N. Y.

Reilly, Hoffman & Co., Inc., New York. Offering—Ex¬
pected today.

of convertible subordinated
being offered for subscrip¬
tion by common stockholders at the rate of $100 of
debentures for each 50 shares of stock held on April 17;
$2,135,700

debentures due May 17, 1971,

^-General American Oil Co. of Texas (5/11-15)
April 23 filed $15,000,000 of subordinated debentures,
due May 1, 1984-(convertible). Price—To be supplied by

Price

Glide Control Corp.

—1608 Centinela

Florida Steel Corp.

filed

.

April 10 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share. Proceeds
—For manufacture, marketing and distributing of auto¬
matic throttle control devices for motor vehicles. Office

—

31

Kv'v/

(5/1/1-1.5)

—Bache & Co., New

.

(5/25)

April 13 filed 2,000,000 shares of common stock. Price
$2 per share.
Proceeds — For construction of motel
units and other facilities.
Office — Tom's Harbor, Fla.
Underwriter—Alkow & Co., Inc., New York.
March

•

—$10 per share. Proceeds — For properties, furniture,
fixture and leasehold improvements arid other expenses.
Office—565 Fifth Ave., New York, N. Y. Underwriter

Peabody & Co. and
Smith Inc., both of
.

>

March 13 filed 3,357,700 shares of common stock.

the 1959 construction

.

Florida-Southern Land Corp.

.

Corp.
March 31 filed 16,131 shares of $5 voting preferred stock
(par $100) and 66,131 shares of 80-cent dividend voting
second preferred stock (convertible—par $1). The com¬
pany proposes to offer one share of the 80-cent dividend
second preferred stock for each share of New Rochelle
Water Co. and one share of its $5 preferred and one
share of the 80-cent dividend second preferred for each
share of New Rochelle $3.50 preferred (including accu¬
mulated unpaid dividends from November, 1950). The
offer is conditioned upon acceptance by holders of 80%
of New Rochelle stock. Office—3219 Philadelphia Pike,
Claymont, Del.

rights.

:

Waterworks

General

the

■writer—None.

St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,

off $7,000,000 of temporary bank loans, which
to meet construction expenditures, and

balance

selling stockholder. Price—$1 per
Proceeds—For furniture inventory and improved

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine

incurred

program. - Underwriters — Kidder,
Merrill Lynch, Pierce, Fenner &

Offering—Postpone#

Home-Stake Production Co., Tulsa,
Nov. 5 filed 116,667 shares

,,

Okla.

of common stock (par

Price—$6 per share. Proceeds—For working capital aiilft
corporate purposes. Office —' 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None.

general

Idaho Power Co.

Great American Realty Corp.

(5/13)

April 1 filed $15,000,000 of first mortgage bonds due
$0 filed 900,000 shares of class A stock (par 10
1989. Proceeds—To be used for partial payment of shortcents). Price—To be supplied by amendment. Proceeds
term bank loans made for construction of new operating
—For working capital. Office—15 William Street, New
-facilities. Underwriter—To be determined by competi¬
York. Underwriter — Louis L. Rogers Co. and Joseph
tive bidding.
Probable bidders: Halsey, Stuart &.Co«
Mandell Co., both of New York. Offering — Expected
Inc.; Blyth & Co., Inc.; Lazard Freres & Co. and Tha
sometime in May.
First Boston Corp. (jointly); Salomon Bros. & Hutzler •
• Gridoil Freehold Leases Ltd.
and Eastman Dillon, Union Securities & Co. (jointly); "
Feb. 5 filed 563,600 shares of common stock to be of¬
Merrill Lynch, Pierce, Fenner & Smith, Inc.; Equitabla
fered in exchange for $2,818,000 of 5J/2% convertible
Securities Corp.; Kidder, Peabody & Co. and White^ sinking fund redeemable notes, series A, due July 1,1976,
Weld & Co. (jointly). Bids—Expected to be received up ■
on the basis of 200 shares for each $1,000 note.
Office—
to 11 a.m. (EDT) on May 13.
330 Ninth Avenue, West, Calgary, Canada. Statement
•
March

General Aniline & Film Corp., Now York

Jan. 14,1957 filed 428,988 shares of common

A stock (nt

par) and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬

Corp. (jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) on
ton

May 13 at Room 654. 101 Indiana Ave., N. W., WashingIon 25, D. C.v but bidding has been postponed.

New York
6% subordinated debentures,
detachable warrants to pur¬
chase 213,100 shares of common stock (each $100 de¬
benture will be accompanied by a warrant for the
General Builders Corp.,

Feb. 26 filed $2,131,000 of
due April 30, 1963, with

purchase for cash of 10 common shares at $3 per share
at any time beginning Oct. 30, 1959 to and including
April 30,
1969).
The company is offering holders
of its outstanding common stock and its outstanding
cumulative preferred stock of record April 8, 1959, the
right to subscribe to a total of $1,631,000 of the deben¬
tures with warrants. The remaining $500,000 of deben¬
tures with warrants are being sold to a group of pur¬

(who are also stockholders of the company)
who have agreed also to purchase certain additional
amounts -of debentures with warrants if subscription
rights are not exercised in at least the amount of $500,090. Subscription warrants will expire on May 11, 1059.
Price
$100 per unit. Proceeds — To repay promis¬
chasers

s

Memphis,

Co.,

Underwriter—None.

Development Corp.
Oct. 23
(letter of notification) 22,820 shares of non¬
voting convertible preference stock (par $12) to 1?*
offered for subscription by stockholders on the basil
of one share of convertible preference stock for each
10 shares of common stock held on or about Nov. 1,
1958. Stockholders will have 45 days in which to exer¬
cise

oversubscription privilege); rights to expire on June 3,
1959.
Price—To be supplied by amendment.
Proceeds

-

(letter of

capital stock

shares

(5/15)
y
April 16 filed 703,485 shares of common stock (par $2.50)
to be offered for subscription by common stockholders
of record May 14, 1959, on the basis of one new share
for each 12 shares of common stock then held (with an

;

Investment

.

Heartland

General Underwriters Inc.

mon

Florida Power Corp.

•

Securities

Segundo, Calif.

.V,

■

...

April 6

.

the

Union

—

-

Proceeds—For purchase and

were

Halex, Inc.
)
April 2 (letter of notification) $70,000 of four-year 5%
debentures, 2,300 shares of 4% preferred stock (par $10)
and 10,000 shares of common stock (par $1). Price—Of
debentures, at face amount (in denominations of $100):
of stock, both at par.
Proceeds—For fixed assets ana
working capital. Office—310 E. Imperial Highway, El

projects as the company may undertake. Office—2413
Third Ave., New York, N. Y. Underwriter—None. State¬
ment effective April 2.

Tenn.

(EDT) on May 19 at The Hanover Bank, 70

to noon

Broadway, New York 15, N. Y.

company's treasury for payments made upon the acqui¬
sition of land and as working capital for such building

development of sub¬
division land, including shopping site; for new equip¬
ment
and
project site facilities; for financing ; ex¬
pansion program; and for liquidation of bank loans and
other corporate purposes. Office—700 43rd St., South,
Bt Petersburg, Fla. Underwriter—None,
v

up

41

and 30,000 shares for a

Mich.

wait.

(2021)

The Commercial and Financial Chronicle

—




Idaho Power Co.

effective April 10.

Growth Fund of America, Inc.
4 filed 250,000 shares of common

Feb.

(5/7)

April 1 filed 150,000 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To ba

/ock

(par

10

Price—At iriarket.
Proceeds—For investment.
Connecticut Avenue, Washington, D. C.
Investment
Advisor — Investment
Advisory
Service,

used for

1

partial payment of short-term bank loans made
of new operating facilities. Underwriter*

cents).

for construction

Office —1325

—Blyth & Co., Inc. (handling the

Washington, D. C.
Underwriter—Investment
ment Associates, Inc., Washington, D. C.
•

Gulf

States

Utilities

Co.

Manage¬

(5/19)

April 17 filed 250,000 shares of common stock (no par).
Proceeds—To be used for the repayment of short-term
notes, and the balance to carry forward the company's
construction program and for other corporate purposes.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Merrill Lynch, Pierce, Fanner &

Smith, Inc. and Lehman Brothers (jointly); The First
Boston Corp.; Carl M. Loeb, Rhoades & Co.; Stone &
Webster Securities Corp. Bids—Expected to be received

books); Lazard Freres

Co., Kidder, Peabody & Co. and Merrill
Fenner & Smith, Inc., all of New York. ,
&

Lynch, Pierce,

Imperial Growth Fund, Inc.
shares of common stock. Price—At
market.
Proceeds — For investment. Office — 60 Mar¬

March 2 filed 600,000

quette Ave., Minneapolis, Minn. Underwriter —
neapolis Associates, Inc., Minneapolis, Minn.

Min--

Washington, D. C.
of common stock (par on*,

Industrial Minerals Corp.,

July 24 filed 600,000 shares
cent). Price—$1 per share.

Proceeds—To develop
Continued

on

page

43-

42

The Commercial and Financial Chronicle

(2022)

M

'

....

"•

Lefcourt Realty Corp.
Jan. 29 filed 3,492,000 shares of common stock, of which

41

operate graphite and mica properties in Alabama.
& Co. and Carr-Rigdom &

derwriters—Dearborn

both of Washington, D.
ment effective Nov. 18.

C.,

on a

Un¬
Co.,

best efforts basis. State¬

Information Systems, Inc., Skokie, III.
April 21 filed 170,000 shares of common stock to be of¬
fered for subscription by common stockholders of Panellit, Inc., at rate of one new share for each three Panellit
common shares held of record May 15, 1959. Price—$3.50
per share. Proceeds—To pay notes, for research and de¬
velopment costs; and working capital. Underwriter—
None.

International

Bank, Washington, D. C.
$500,000, two$1,000,000, four-year 4% pei
unit; and series D, $3,500,000, 6-year, 5% per unit). Priot
—•100% of principal amount.
Proceeds — For workini
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
Dec. 29 filed $5,000,000 of notes (series B,

year, 3% per unit; series C,

.

International

April

16

Railroads

Weighing Corp.

(letter of notification) 82,626 shares of com¬
(par $1) to be offered for subscription by

stock

mon

common

stockholders at rate of

new

one

four shares

held.

research

development
Spruce St., Hammond, Ind.

Price—$3

and

Office—415

share for each

share. Proceeds — For
costs and working capital.
per

Underwriter—

None.

International Tuna Corp.

April 3

(letter of notification) 175,000 shares of class
A common stock (par 50 cents).
Price — $1 per share.
Proceeds—For equipment and working capital.
Office
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.,
Gulfport, Miss.
Interstate Power Co.

(5/20)
April 7 filed $6,000,000 of first mortgage bonds due 1989.
Proceeds — To repay bank loans and for construction
program.'Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner & Smith, Inc.; Kidder,
.

Peabody & Co. and Lehman Brothers (jointly); White,
Weld & Co.
Bids ~ Expected to be received up to 11
a.m. (EDT) on May 20.
Interstate Power Co.

(5/18-19)

April 7 filed 80,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment.
Pro¬
ceeds—For construction program.

Underwriter—Kidder,

Peabody & Co., New York,
i
Investment Corp. of Florida (5/25-29)
April 13 filed 275,000 shares of common stock. Price—
$4.50 per share. Proceeds—For acquisition and develop¬

of

ment

land

in

Florida.

Office —1750

East

• Invesco, Inc.

A

April 16

(letter of notification) 250,000 shares of com¬
Price—At par ($1 per share). Proceeds—
To expand new areas. Office—114 S.
Palomar Dr., P. O.
stock..

Box 6428,

Tucson, Ariz. Underwriter—None.

Investors Commercial Corp.
April 6 filed 105,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds—To selling stock¬
holders.
Office
180 W.
,

Randolph St., Chicago, 111.
Underwriter—Paul C. Kimball & Co.,
Chicago, 111.
—

•

Investors Funding Corp. of New York
Feb. 17 filed $500,000 of 10% subordinated
debenture!
due July 31, 1964, to be offered in units
of $1,000. Price
—At 100% of principal amount.
Proceeds—For invest¬
ment.

Office—511 Fifth Ave., New York. N Y.
writer—None. Offering—Expected in a month.

Under¬

of

capital stock.

Price—At

market.

Proceeds—

For investment.

^ Irando Oil & Exploration, Ltd.
April 24 filed 225,000 shares of common

stock. Price—90

cents per share. Proceeds—To
defray the costs of explo¬
ration and development of
properties and for the ac¬
quisition of other properties; also for other

Office—1950 Broad St.,
Regina,
Underwriter
Laird &
Rumball,

purposes.

ic Island Cottages, Inc.
April 21 .(letter of notification)

shares

Proceeds—To go to the company.

Can.
Can.

of

pre¬

Price—$100
Underwriter

•
Krupp Manufacturing Co. (5/4-8)
April 3 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1.25 per share. Proceeds—
To selling stockholders.
Office —4th & Mill Streets

Quakertown, Pa.

Underwriters—Hallowell, Sulzberger,

Jenks, Kirkland & Co. and
Woodcock, Hess, Moyer &
Co., Inc., both of Philadelphia, Pa.
•

Laguna Niguel Corp.
April 1 filed 900,000 shares of class A stock
(no par)
and 900,000 shares of class B
stock (no par) to be of¬
fered in units, each
consisting of one class A and one
class B share. Price-—$10
per unit. Proceeds—To make
payments in connection with
acquisition of certain prop¬
erties, to repay bank loans, for
working capital and
other corporate
purposes. Office—621 South

Spring St.,

Los

Angeles, Calif. Underwriter—Paine, Webber, Jack& Curtis, New York
and Los Angeles.
OfferingExpected this week.

$on

Laure Exploration
Co., Inc., Arnett, Okla.
Dec. 23 filed 400,000 shares of
common stock.
Price

per share.

Proceeds—For machinery and equipment

exploration purposes.

Underwriter—None.




issued

$2
and

Office—1404

poses.

apolis, Minn.

in

exchange for all oi
common stock of Desser & Garfield, Inc., and D. G
R., Inc.; 750,000 shares will be used for the exercise
of an option by the company to purchase from Big
Mound Trail Corp. some 3,784.9 acres of land on oj
before May 1, 1959; and the remaining 120,000 shares are
to be sold for the account of a selling stockholder. Un¬
were

.

^Thursday, April 30, 1959

Dec. 23 filed

share.

per

Proceeds

•

Missouri

tures

and

other

be

for

spent

initial

of

three

Co.

\

or

on

the

basis

about

of

share

one

April 29. Price

—

general

for

/

each

31

J/

shares

'^

To be supplied by
of the com-

'*•<,
'/•

funds

Office—400 Broadway, Cape Girardeau, Mo.
derwriter—Edward D. Jones & Co.. St. Louis, Mo.

^

Un-

Montana Power Co. ■;'
A*:•4 -'4•,'*
July 1 filed ;100,000 shards of' cpnimOp;stocik (no• pair); *
The

and

and

stock

will

be

offered

only

to

bona

;:r

fide residents

of

Montana/ Price—To be related to the current market J
price on: the New York Stock Exchange/ Proceeds- --Together with ©lifter funds, io carry, -dm the company's coriJ v ■£
struction prdgram through
1959b : Manager-Dealers ^ w.
Smith, Barney & Co.* Kidder* Peabody & Co. and Blvth <

Peabody &

Co., New York.
• Lockheed Aircraft Corp.
April 20 filed 342,600 shares of capital stock, which may
be purchased pursuant to the
company's Employee Stock

-

k

Co.; Inc. j Ctffering-^ndefinitely pOstpdhedA

r

-v*»b/

Mortgage Corp. of America
April 10 filed $1,000,000 of 4%%' collateral trust notes,
due May T, 1969-79.' Price—100% of
principal amount.;"'/
Proceeds—^For-repayment of loan.- Office—100 St. Paul
Street, Baltimore,* Md: Underwriter—None.
'

Plan.

Lorain

Telephone Co.
Feb. 11 (letter of notification) 1,562 shares of common
stock (no par) to be offered for subscription by stock¬
holders at the rate of one new share for
approximately
each 75.1729 shares held at the close of business on
March 17, 1959; rights to expire on May
15, 1959. Price
—$32 per share. Proceeds—To reimburse the treasury
Office—203 W. Ninth St., Lorain, Ohio. Underwriter—
None.

Utilities

/

Price—$1

working capital. ~
Underwriter—None.

■

stores,

Purchase

common stock.

pany.

com¬

the balance of the proceeds will be used to
acquire
establish new stores. Underwriter—Kidder,

new

-

additional

amendments Proceeds—For

inventory, equipment, fix¬

costs

on

held

(par $4),
of which 60,000 shares will be sold for the company's
account and 50,000 shares for the account of certain sell¬
ing stockholders. Price—To be supplied by amendment.
will

Bldg., Minne-

April 14 (letter of notification) 10,154 shares of common
(par $1) to be offered for subscription by stock-

it Levine's, Inc., Dallas, Texas (5/18-23)
April 24 filed 110,000 shares of common stock

and

Bank

stock

holders

Proceeds—To be added to the general funds of the

For

—

Office—Siloam Springs, Ark.

derwriter—None.

pany

Northwestern

Underwriter—None.

Millsap Oil & Gas Co.
602,786 shares of

tne

&

★ National Citrus Corp...
/-A/VJ.;/A;- A
April 20 (letter' 'Of notification): 150.000 shares of com¬

stock.'

mon

For

new

JfcHceAAt^$ar,*($2 per sh^re)ProCeeds-r-4 equipment, iriveritoty^ and working ca^ital; Ad- ® '
1658, Lakeland/ Flal
Underwriter^'^

dress—FT OA Box

|

R. F. Campeau

•

Loral Electronics Corp.
(5/6)
April 1 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To in¬

"Co.," Inc., Detroit, Mich.

National Gypsum Co.
:
April 6 filled 1,014,300 shares of common stocky to be of¬
fered in exchange for all' but hot less than 98% of
crease inventories and for
general corporate purposes.
the;^
Office—825 Bronx River Ave.; New
York, N. Y. Under¬ //outstanding common• shares of Huron Portland Cement
Co. in the^ ratio'of 7/lOpf a share of National
writers—Kidder, Peabody & Co. and Model, Roland &
jstoe^» Jok-*A
each-share of Huron
Stone, both of New York.
stobky 'Offer will expire on May 19.
National. Life & Casualty Insurance Cq. ::.;v
LuHoc Mining Corp.
.

■

.

..

Price—$1 .^Mardh 25 filed 250,000. shares Of common capital stock A
,jto be offered' .to holder^' .of ipertaiil of company's life
per share. Proceeds — For the acquisition of
propertiei
insurance policies issued on or prior to Dec.
under option and for various geological
31, 1955,
expenses, test
and to certain
drilling, purchase of equipment, and other similar pur¬
employees. Price—$4.44 per share. ProSept. 29 filed 350,000 shares of

common

stock.

,

poses.

ceeds—To

Offices—Wilmington, Del., and Emporium, Pa

North

Underwriter—None.

Lytle Corp.

(5/11-15)

:

and

purposes.

Calif..
•

Kirkpatrick, Inc., Nashville, Term.

April 22, 1959; rights expire on
(with an oversubscription privilege).

19

share.

about

or

Price—$6

subscription by

30, 1962, and

common

Proceeds—To

used

for

equipment, for increased inventories,
ment

of

bank

leans.

Office—7575

the

a ad

N.

W.

Price—$3
purchase of

for the retire¬
37th

Avenue

Miami, Fla. Underwriters—Aetna Securities Corp., New
York; and Roman & Johnson, Fort Lauderdale, Fla.
Midwest Technical
Development Corp.

March 17 filed 500,000 shares of

Price—$3.75

per

share.

stock (par $1).
investment pur¬

common

Proceeds—For

-

'

-.

(5/18-23)
1

'

pay

off in full

a

5%

;
v

:

chattel i,

•-

Mass.

New York Shipbuilding Corp.
March 3 filed '621,353 shares of common

stock. Price—
To be supplied by amendment. To be offered from time
to/time either oh the New Yoirk Stock Exchange at price

prevailing at time of sale

£

by public or private sale
To Merritt
Chapman &
Seott Corp.* the'selling stockholder. Underwriter^—None.
Statement withdrawn on April 22. .'-

ht/related prices. Proceeds
"

or

—

-

--

>

•

New York Shipbuilding Corp.
Mctfch 20 filed 83,334 shares of common

-

-stock, to be
offered; ip'exchtinge fot .Common stock of Higgins, Inc.,
ht the rate of'oii'e share of New York Shipbuilding comtnon' for each 24'shards of Higgins common. Statement
effective April 16./v!
;
i:
,

Oak

Ridge-, Inc.
;
./ v
?
Se^rt. 4 (letter of notification) 100,000 shares of common
stuck (par $1). :Price — $3 per share. Proceeds — For
working capital/ Office—11 Flamingo Plaza, Hialeah,

-.

*

Underivriter —Henry

;

Underwriter—None.

be

common

share.

•

Rd., Tampa 7, Fla. Underwriter—W. W.
Co., New York 5, N. Y.

Miami Extruders, Inc.
(5/11-15)
April 17 filed 175,000 shares of common stock.

per

|d<p£ Peabody :& Co. Ihe>, Boston,

mingo Plaza,

& Associates, Inc., 11 Fla-/
Fla.,

^ialeah,

;

)f Off ice Buildings

of America, Inc.
(April 6-filed 91,809 shares of class A stock (par $1)'and
fl0,201 Share's of class B common stock (par $1) to be
:

share.

oO^entff), Price—$2

Ifq^pew plant additions, and for general corporate pur- j
4poses. Office—Peterborough, N. H.
Underwriter—Kid-

it Mayfair Markets
April 13 (letter of notification) 5,000 shares of
pre¬
ferred stock (par $50) and
5,000 shares of common stock
(par 1) to be offered in units consisting of one share

per

(par

,,

March 30

Blvd., Los Angeles, Calif*

b;
~

mortgage terih loan;'to construct! an addition to its main Z
plant; and the balance,- together with other corporate
funds will be used to purchase machinery and
equipment I

•

common

of preferred and one share common.
Price—$60 per unit.
Proceeds—To liquidate obligations. Office—4383 Bandini

;

company and." 20,000 shares for certain selling
stockholders; the remaining 6,000 shares are to be offered by
4hh- companyVt'qi its employees. Price—To be supplied by

Eastman Dillon, Union ^Securities &
Co., both of New
York; Schoellkopf, Hutton & Pomeroy, Inc., Buffalo,
N. Y.; and
Granbery, Marache & Co., New York.
./

Henderson

J

cumu-

April 27 filed 126,h()0 shares of .common stock (par $2)
of which, 100,000 shares are to be offered for account of

balance will be used for general corpo¬
rate purposes. Underwriters—The
First Boston Corp. and

at

of

,.

'
* *?
^r"New Hampshire Ball Bearings, Inc.

any

Schroeder &

,

;

Wilshihe Blvd., Los Angeles 17, Calif. Under-

amendment. Proceeds—To

(letter of notification) 37,500 shares of com¬
mon
stock (par $1) of which 25,000 shares are
being
offered by the
company, out of authorized but unissued
stock, and 12,500 shares are being offered by John F.
Crosby, Spring Lake, N. J. Price—$8 per share. Proceeds
—For payment of
outstanding loans and working capi¬
tal, and to selling stockholder. Office—Gunn Highway

Investing

To be designated!'
/

per

anticipated that $9,000,000
outstanding bank loan due Sept.

Capital

,:'v'

Proceeds—To
acquire fiship^ tdols for leasing; and for working capital.
Address—P. O/Box 672, Odessa, Texas/Underwriters— V

May

stockholders of record
May 12, 1959, on the basis of one
new share for each 20 shares then
held, rights to expire
on
June 1.
Proceeds—It is
will be used to pay an

Business

■

Proceeds—To increase capital and surplus. Office
—83 Exchange Street,
Portland, Maine. Underwriter—
P. W. Brooks &
Co., Inc., New York.
Marine Midland Corp. (5/13)
April 17 filed a maximum of 465,000 shares of
stock (par $5) to be offered for

Small

S':

( Nedow Oil Tool Co.
. is
;
May 5 (letter of notification) .150,000 shares of

share for each two shares

on

.

writer—Waldron & Co., San Francisco
4, Calif.

Fidelity Life Insurance Co.
March 30 filed 100,000 shares of capital stock
(par $1.50)
being offered for subscription by holders of outstanding
new

t

r

—

fice— 1250

stock

one

2300

—

lativlj voting and non-assessable common stock. Price—
At $ar ($1 per share). Proceeds—For
organizational expenses and first three months' operational expenses. Of¬

Maine

held

corp.

Raylor Engineering & Research Corp.
SeptT29 (letter of notification) 300,000 shares

for working capital, and general corporate
Office—Virginia & Truckee Bldg., Carson
Underwriter—J. Barth & Co., San Francisco,

stock at the rate of

Office

filed 500,000' shares of capital stock (par 50
Price — $1 per share. Proceeds
For working
capital and inv^tmeiitsV/ Office—Hartsdale, INh
;;derwriter—None. ;v'V.
v..

Magma Power Co. (5/11-15)
April 3 filed 100,000 shares of 6% convertible preferred
stock (par $10) and 500,000 shares of common stock
(par 10 cents) to be offered in units consisting of one
preferred share and' five cqmjnop^^harqs^
Price-^$63
per unit.
Proceeds—For drilling and exploration pro¬
gram;

surplus.

cents);

general working capital. Under¬
writers—Joseph Walker & Sons, New York; and Clark,

City, Nev.

;

and

April 24

tire bank loans and for

Landstreet &

increase' capital

CentralA*vfe.>'Phoenix, Ariz. Underwriter—None.-

★ Nationwide

,

April 16 filed 100,000 shares of common stock. Price—
At a maximum price of $14 per share. Proceeds—To re¬

Mary Carter Paint Co.
10,000

ferred stock (par $5) to be offered in
units.

per-unit.
—None.

corporate

Sask.,
Regina, Sask.,

—

shares

•

it Investors Stock Fund, Inc., Minneapolis, Minn.
April 23 filed (by amendment) 10,000,000 additional
shares

2,622,000

Sunrise

Boulevard, Fort Lauderdale, Fla. Underwriters—Aetna
Securities Corp., New York; and Roman &
Johnson, Fort
Lauderdale, Fla.

mon

.

-

■

Continued from page

'

.

»
)

joffered in uhits of nine class A shares and
share.

Price—$100

per

one class B :
unit.' Proceeds—To be available *

for^ investment in real estate syndicates and other real
estate. Office—9 Clinton St., Newark, N. J. Underwriter
-None.
* >
»"
•

-

Oil, Gas & Minerals, Inc.
?fil 2-filed 260,000
cenTS.

Price—$2

per

?;!

shares

of

share.

Proceeds—To

common

stock

(par

retire

35

bank

•'

Number 5842

Volume 189

.

.

The Commercial and Financial

.

(2023)

Chronicle
,

(5/12-13)
April 15 filed 150,000 shares of common stock (par $1)
(of which 8,000 shares are to be offered to employees).
Price—To be supplied by amendment. Proceeds — To
selling stockholders. Business — Producer of decorative
•

investment purposes. Office—513 Interna¬
Trade Mart, New Orleans, La.
Underwriter —
Investment Co., Inc.,- New Orleans, La.

loans and for
tional
Assets
'

O.
Dec.

Rubber Welders,

K.

filed

15

Inc.

60,600 shares of common stock,

3*4% debentures maturing on or before

of

$43,333.33

New

York.

—

sort-term bank loans, for working capital and
corporate purposes. Underwriter—Lee Higginson

repay

other

an

Corp., New York,

v

'

it Potomac Electric Power Co. (5/13)
April 23 filed 1,182,077 shares of comrhon stock (par $10)
to be offered for subscription by ^ommon stockholders
of record May 12, 1959, at the rate of one new share for
each five shares then held; rights to expire on or about

Fund, Inc..'//■
'"V**/ Kv; May 27. Unsubscribed shares will be offered first to
employees. Price—To be supplied by amendment. Pro¬
Dec. 5 filed lD0,000 shares of capital stock.
Price—At
ceeds—To pay $6,425,000 of outstanding bank loan notes,
market
(about $10 per share).
Proceeds—For invest¬
representing borrowing for working capital and other
ment.
Office—25 Broad St., New York. Underwriter—
corporate purposes; to reimburse the company's treasury
Oppenheimer & Co., New York.
•*
•
lor a portion of the construction expenditures heretofore
.ivr-'t Ozark Air Lines, Inc.
made, and to provide for a portion of its construction
March 24 (letter of notification) 59,825 shares of gen-,
program. Underwriters—Dillon, Read & Co. Inc., New
eral common stock (par $1) to be offered for subscrip¬
York; and Johnston, Lemon & Co., Washington, D. C.
tion by holders of class A and class B common stock1,
-

stock evidenced by a voting
share of general common stock for
each 20 shares of cl. A and cl. B common stock held.
Price
class

and/or

B

common

$4.75 to public. Proceeds
—To purchase additional flight and ground equipment
and for working capital. Address—P. O. Box 6007, Lam¬
bert Field; St. Louis 21,/Mo/ Underwriter-^Nfone, but
Newhard, Cook and Co. and Yates, Heitner & Woods,
both of St. Louis, Mo., offered to purchase the unsub¬
—$4.25 per share to stockholders:

scribed shares.

stock

30

41st

outstanding

51,847

shares

of

common

Price

—
American

*

Inc.

,

300,000 shares of capital stock. Price—Mini¬
purchase of shares is $2,500. Proceeds—For invest¬
ment.
Office—404 North Roxbury Drive, Beverly Hill*
Calif.
Underwriter—Paramount Mutual-Fund; Manage¬
ment Co. Statement effective April 14. " *
V; V;-/
mum

.

.

Peckman Plan Fund,

Inc., Pasadena,

Proceeds—To selling stock¬

Huron, Mich,

Underwriter—None.

Underwriter—None.
/

Prudential Enterprises, Inc.

Jan. 15

(letter of notification) 200,000 shares of common

(par one cent) of which 170,000 shares are to be
sold by the company and 30,000 shares by a selling
stockholder.
Price — $1.50 per share. Proceeds — For

•

;

York City
March 31 filed 1.490,622 shares of common stock being
offered for subscription by common stockholders at rate
of one new- share for each four shares heicf. as of record
Penn-Texas Corp., Now

general expansion and working capital.
Office—1108
16th Street, N.W., Washington 6, D. C.
UnderwriterC. Kahn Co., Washington, D. C.
Corp.,

Purepac

—

New York

V. Pennsylvania Power Co;

filed $8,000,000 of first mortgage bonds due 1989.

•

like amount of 5% first mort¬

4, N. Y. Offering—Expected end of May.

Puritan Chemical

Corp.
500,000 shares of capital stock

(par 10
cents.
Price—$1.25 per share. Proceeds—For working
Underwriter—To be determined
capital and general corporate purposes. Office—2 South
by competitive Didding. Probable bidders: Halsey, Stuart
& Cm Inc.; Kidder, Peabody & CoV; White Weld & Co. '
Broadway, Lawrence, Mass. Underwriter—Dunne & Co.,
New York/
Offering—Expected any day.
Equitable Securities Corp.,-arid Shields .& Co. (jointly)
Lehman Brothers, Eastman Dillon, Union Securities &'
it Pyrometer Co. of America, Inc.
Co., Salomon Bros. & Hutzler and tiadenfrurg, Thalmani ■>
April 27 filed 200,000 shares of common stock. Price—$3
& Co. (jointly); MerrillXynch, Pierce, Fenner & Smitt '
per share. Proceeds—For inventory, expansion of present
and Dean Witter & Co, .(jointly)". Bids — Tentatively 1
facilities, equipment, working capital and other general
had been expected to be received up to 11 a.m. (EDT) f
corporate purposes. Office — Penndel, Pa. Underwriter—
on Aug.
27 but company on Aug. 22 decided to defe* < Arnold Malkan &
Co.; Inc., 565 Fifth Ave., New York.
sale pending improvement in market conditions. - SEC/
Raindor Gold Mines, Ltd.
on Feb. 25, 1959 extended to June 16, 1959 period within>
Jan. 28 (letter of notification) 290,000 shares of common
which company may consummate finaheing. ^ -■/,<:
stock (par $1). Price—$1 per share. Proceeds—To prove
( Perfecting Service Co.-; -rr-fV';1.//'
up ore and for road and camp construction. Office—At
Feb.* 26 (letter of notification) 28,250 shares of common;
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.
stock to be offered for subscription by stockholders on
Arnold, Wilson Cirele, Rumson, N. J. Underwriter—
a pro rata basis.
Rights expire in 15 days. Price—At par
Sano & Co., New York, N. Y.
($10 per share). Proceeds—For accounts, receivable and
inventories. Office-r-332 Atando_ Ave:, Charlotte, N. C.i
Rapid-American Corp., New York
-Underwriter—None./ /"•:-.'>
April 13 filed $7,209,640 of convertible subordinated de¬
bentures due April 30, 196*4, to be. offered for subscrip¬
Permachem Corp., New York > r :'
?
5
tion by common stockholders in the ratio of $100 of
March 31 filed 2,041,331 shares of class -A common stock;
debentures for each 10 common shares held. Price—To
(par 10 cents) and 1,917 shares of class B common stock
be supplied by amendment. Proceeds—To be applied in
(par 10 cents).-This covers the .transfer of certain shares
part to the repurchase and retirement of the company's
pursuant, to option agreements. Price — At over-the5%% convertible subordinated debentures presently out¬
counter market prices. Underwriter—None.
,.v
^
standing, in full, at par plus accrued interest to the
i Permanent Filter Corp.
.; ~
•*/'■ •
date of payment, and the balance for general corporate
April 7 filed 140,000 shares of common stock, of which.
Proceeds—Ta redeem
gage

a

March

30

filed

bonds due 1987.

.

'•

.

.

,

purposes.

the comand 20,000 shares for account of selling stockholder.

pany

supplied

by

amendment.

for

one

share of

Kennedy's stock.




property

working
Conn.
Underwriter—Laird
Del.

*-

'-*nm

Wilmington,/;.

Corp.,

off America, Inc.

Research Investing Fund

shares of capital stock. Price—At*,,
Proceeds—For investment
Office—Englewood,, i
Underwriter—First Mutual Securities of America,

24 filed 200,000

Feb.

market.
N. J.
Inc.

V ;

;■ '

,

.

•/.

■

"y:

y

Alberta, Canada
June 26 filed 1,998,716 shares of common stock (par $1). j *
Of this stock, 1,174,716 shares are to be sold on behalf oly;>
the company and 824,000 shares for the account of cex-//
tain selling stockholders. The company proposes to offer ■?/..
the 1,174,716 shares for subscription by its shareholders//,
at the rate of one new share for each three shares held
Petroleum Ltd.,

Richwell

(with an oversubscription privilege). The subscription r
period will be for 30 days following issuance of sub-*/
scription rights. Price—To be supplied by amendment, *
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added
capital. Underwriter — Pacific Securities

to working^

Ltd., Van¬
f;v
V*

Canada.

Roanoke Gas Co.
March

(letter of notification) 17,732 shares of com- //
(par $5) being offered for subscription by\„;
on the basis of one share for each -/
shares held as of record April 6 (with an oversub^; :
19

stock

mon

common

seven

stockholders

scription privilege); rights to expire on May 15, 1959.. Price—$16.75 per share. Proceeds—To repay short-term * F
bank loan and for installation and construction of addi- ,
for the

mains

tional

Office

facilities.

of extending distribution
Church Avenue, Roanoke, Va.

*

purpose

123

—

•

Underwriter—None.

it Rohr Aircraft Corp.
/ '
April 29 filed 240,614 shares of common stock issuable, •
upon exercise of restricted stock options which may be
granted to officers and key employees of the company.
Routh Robbins

Investment Corp.

Jan. 29 filed 475,000

shares of common «tock.

Price—$1;
working;
Office —

share.
Proceeds — For investments and
capital. Business — Real estate investments.
Alexandria, Va. Underwriter—None.
per

•

Rowland Products, Inc.,

? *;

Kensington, Conn*(5/1)1

*

.

April 17 (letter of notification) 11,538 shares of common;
stock (par $12.50) to be offered for subscription by
common stockholders at rate of one new share for each

1959; rights to exPrice—To be supplied by

shares held of record April 24,

6Y4

pire

on

or

about May

19.

*

For working capital. Under¬
writers—Cooley & Co., Putnam & Co. both of Hartford,
Conn, and Eddy & Co., New Britain, Conn.
Proceeds

amendment.

—

Paper Co.
■J
shares of common stock (par $5)
be offered in exchange for outstanding common stock
St. Regis

March 27 filed 58,000
to

Cupples-Hesse Corp. on the basis of .644 of a share ;
for each share of Cupples common.
Regis will declare the exchange offer effective Iff
100% of the outstanding shares of Cupples stock is de^

of

of St. Regis common

St.

posited in exchange, and may elect to do so
percent, but not less than 80%, is deposited.

if a lesser

Skyforest, Calif.
6% convertible subordinated
sinking fund debentures due 1974. Price—At 100% off
principal amount.1 Proceeds —* For completion of East
Dundee Village (a new amusement park near Chicago);,
and for working capital and other corporate purposes.
Santa's Village,

March 27 filed $800,000 of

Underwriter—None.

;

I

Schjeldahl (G. T.) Co.
• •
March 23 filed 42,500 shares of common stock, which
are to be offered and sold first to present stockholders
at the rate of one new share for each eight shares held
on April 1,
1959. Price—$10 per share. Proceeds—For
increased plant facilities, for purchase of equipment,
working capital and other corporate purposes. Office—
202 South Division St., Northfield, Minn.
Underwriter
—Craig-Hallum, Inc., Minneapolis, Minn.

(5/4-8)
Price—
Proceeds—For expansion of present prod¬
acquisition of new related lines. Office—

Seaboard Plywood &
March 27 filed 150,000

$3 per share.
uct lines and
17

Bridge

St.,

Lumber Corp.

shares of common stock.

Watertown,

Mass.

Underwriter—Peter

York.

:

Fort

BlvcL,
Hous-

-

Oil Corp.

6% convertible debentures
for subscription by common
stockholders at the rate of $100 principal amount of
debentures for each 300 common shares held. Price—
To be supplied by amendment.
Proceeds—To pay debt
March 30 filed $1,500,000 of
due

,

*

Co.,

&

'/,y

Sept. 26 (letter of notification) 3,567 shares of common
»tock (par $1). Price—$18.75 per share
Proceeds—Tb

$1,000.

Reiter-Foster

Proceeds—For
Plaza Oer-

Phillips-Van Heusen Corp.
April 21 filed 69,210 shares of common stock, to be^bffered in exchange for common stock of Kennedy's, Inc.,
in the ratio of IV2 shares of Phillips-Van Heusen Stbck

Proceeds—For
and equipment, to retire bank loans, and for
capital. Office — 55 Triangle St., Danbury,,.
Price—$12.50 per share.

May 13.

basis.

two shares held.

working capital. Office—Soriano Building,
vantes, Manila (P. I.). Underwriter—None.

.

on

Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrite!
—Rassco Israel Corp., New York, on a "best efforts'

Philippine Oil Development Co., Inc.
*
10 filed 221,883,614 shares of capital stock, to be
offered for subscription by holders of outstanding stock
be

being >
shares <

Morgan & Co., New

of $500 and

April

Price^-To

/

*

70,196

$1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denomination!

June 26 filed

Co., Los Angeles, Calif.

alf the rate of one new share for each

Financial Corp.

Rassco

supplied by amendment. Proceeds -7— For
land and buildings and working capital. UnderwriterPrice—To be

William R. Staats &

Underwriter—None.

filed

26

the basis of one new share for each three shares
or about April 28, 1959; rights to expire on or

upon

held

,

120,000 shares are to be offered* for account of

Underwriter—Charles

shares of common stock,
offered for subscription by holders of outstanding

John

New York
~
March 31 filed 260,000 shares of common stock (par five
April '24, .1959;
rights/to expire on. May 8,
1959. /, cents). Price—$3 per share. Proceeds—To repay loans
Price—$6 per share. , Proceeds—To' purchase additional/ and for general corporate purposes. Business—Manu¬
Un¬
stock of Fairbanks, Morse & Co. and for;,repayment of; facturers and packager of proprietary drug items.
derwriter
Richard Bruce & Co. Inc., 26 Broadway,
loans. Underwriter—Bear, Stearns & Co^ New York. v
;
Aug. 1

Republic Foil Inc.

stock

Calif.

May/ii* meet 20,UUU shares of common, stock (par $1)
Price—At market;
Proceeds—For investment. Under
writer—Investors Investments Corp., Pasadena, Calif.
•
•

Exchange.

rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.

-

Jan. 2 filed

•

Stock

/ Producers Fire & Casualty Co., Mesa, Ariz.
March 31 filed 400,000 shares of common stock to be
offered for subscription by holders of stock purchase

y\*

Fund,

Related to the current market price on the

Y.

Co., New York, N. Y.

couver,

holders. Office—Port

public." Price-r-$3 per share;1 Proceeds—
To selling stockholders, The; Refinite Corp: Office—8400
Santa Monica Boulevard, Los Angeles, Calif.- Underwrit¬
?';*•/ > t-Y//'-

Co., Inc., both of New

America, Inc.
April 17 filed 90,000 outstanding shares of common stock.

the general

Paramount Mutual

•

March

Pressed Metals of

(par SI) to be Offered '"only to stockholders and
Refinite- Corp. and will not' be offered

er—None.;

Underwriters—Charles Plohn

York, N. Y^iU

directors of The
•'to

St., New Yorkj N. Y.

& Co. and Netherlands Securities

v

filed

(5/18-25)

opment expenses; for inventories and work in process;
and other general corporate purposes.
Office—120 E.

Paddock of California
March

Electronics Corp.

Precon

April 6 filed 175,000 shares of common stock (par 75
cents). Price — $5 per share. Proceeds — For working
capital; to reimburse the predecessor for certain devel¬

one

•

working capital. Office—

gage and loans and for general
117 Stanley Ave., Yonkers, N.

about

Oppenheimer

trust certificate,

April 2 (letter of notification) 150,000 shares of common
(par one cent). Price—$2 per share. Proceeds—To
purchase new equipment; for payment of chattel mort¬

stock

Plohn &

■ .;

'

.*.}

.

(5/4-8)

Reon Resistor Corp.

Me.

• Pittsburgh Standard Conduit Co.
(5/11-15)
April 9 filed 75,000 shares of capital stock (par $5).
Price
To be supplied by amendment.
Proceeds — To

exchange offer between this corporatioi
O. K. Rubber, Inc., and O; K. Ko-op Rubber Weldinj
System, on an alternative basis. Proceeds—Of the public
offering, will be used for additional working capita
and/or to service part of the company's debt. Office—
551
Rio Grande Ave.. Littleton, Colo.
Underwriter—
None.
Statement effective April
/y///
to

Corp., Sanford,

plastics. Underwriter—Reynolds & Co., Inc.,

laminated

May 6, 1965

$692,000 of 6% debentures maturing on or before Dec
31, 1974 and $123,000 of 7% debentures due on or befort May 6, 1965. The company proposes to make a public
offering of 25,000 shares of common stock at $10 per:
share." The remaining shares and the debentures are :
subject

Pioneer Plastics

43

and

1969,

be

offered

of present properties and acquisi¬
development of additional oil and gas proper¬
Underwriter—Emanuel Deetjen & Co., New York.

for development

tion and

ties.

to

Service

Life Insurance Co.

selling stockholder. Office—400 W. Vickery
Worth, Tex. Underwriter—Kay & Co., Inc.,
ton, Tex.
go to a

Servonics, Inc.

(letter of notification) 133,000 shares of com(par $1). Price—$1.50 per share. Proceeds—
general corporate purposes. Office—822 N. Henry

March 25
mon

For

stock

St., Alexandria, Va.

Agent—Kidder, Peabody & Co.,

New

York.

Continued

on page

44

/

44

(2024)

The Commercial and Financial Chronicle

...:\

•

•,

Continued

from

Standard

43

page

March

Shares in American

/

12 filed

Dec.

Industry, Inc.

50,000 shares of common stock.

Proceeds—For investment.

market.

Office

Price—A\

1033-30tb

—

St., N. W., Washington 7, D. C. Investment Advisor—In¬
Fund

vestment

Corp.

Management

Former

Name—

Shares in America, Inc.
Co.

Aug. 19 (letter of notification) $250,000 of 6% convertibli
debentures due Sept. 15, 1963 to be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital. Office — 3172
North Sheridan Rd., Chicago 14, 111. Underwriter—Nona
'

Silver Creek

March
310

filed

30

Precision

Corp.

1,550,000 shares of

cdnts), of which 200,000 shares

the

stock (par
to be offered for

common

are

of the company, and 1,350,000 shares for
gelling stockholders. Price—To be supplied
kby amendment. Proceeds—For working capital. Office—
Central Ave. and Mechanic St., Silver Creek, N. Y. Un¬
derwriter—Maltz, Greenwald & Co., New York.

account

eecount of

9

SI MCA

Societe

Inc.

Co.,

Anonyme, of France

March 24 filed 1,000,000 shares of capital stock, par
•valiie 5,000 French francs (U. S. $10.12) per
share, and
•equivalent 2,000,000 American shares representing such

one additional
held as of April

or

French

13, 1959
(with an additional subscription privilege); rights to
expire on May 7, 1.959. Price — 5,500 francs (equal to
(oil.22 per share) for the French shares, or 2,750 francs
($5.61 per share) for the American shares. Proceeds—
To be

added to

the

general funds of the company and
used for general corporate purposes. Underwriter—None.

Sip'n Snack Shoppes, Inc., Philadelphia, Pa.
March 31 filed 200,000 shares of common stock. Price—
$2 per share. Proceeds—To pay loans and for new equip¬
Undei writer—Sano &

ment.

Southern

Co., New .York.

Electric

Generating Co. (5/28)
17 filed $25,000,000 of first mortgage bonds due
Proceeds—To be used in connection with financ¬

April
1992.

ing the cost of constructing
station

a

and

related fa¬

cilities; and for the repayment of $4,000,000 of shortterm bank loans incurred for such capital
expenditures.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co. and Equitable Securities

Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith;
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Iftids—Expected to be received up to 11 a.m. (EDT) on
May 20 at the office of Southern Services, Inc., 250
Park Avenue, New York
17, N. Y.
Southern Nevada Power Co.

(5/11).

April 6 filed $5,500,000 of first mortgage bonds, series
D,
•due 1989. Proceeds—Together with other
funds, will be
used to repay temporary bank
loans, and to refund the
©lightly less than $4,000,000 of series "C" 53/2% mortgage

bonds

due

1986.

competitive

Underwriter—To

bidding.

Probable

be

determined

bidders:

Halsey,

&

by
Stuart

Co. Inc.; Eastman
Dillon, Union Securities & Co. and
Kidder, Peabody & Co. (jointly); White, Weld &
Co.;
Merrill Lynch, Pierce, Fenner &
Smith, Inc. Bids—Ex¬

pected to be received up to 9 a.m.
(PST) on or about
May 11 in the offices of O'Mclveny &
Myers, Room 900,
433 South Spring

Street, Los Angeles 13, Calif,

Southern Union Gas Co.
March 19 filed 442,731 shares of
4.64% cumulative con¬
vertible second preferred stock
being offered for sub¬
scription by common stockholders of record
April 10,
1959, on the basis of one share of preferred for

c

iive

common

vilege);
($25
dor

each
shares held (with an
oversubscription pri¬
to expire on May
1. Price — At ^ar

rights

share).

per

construction

ney

& Co.,

New

York.

Proceeds—To repay

program.

loans

and

Electric

Power

Co.

(5/12)
April 13 filed $16,000,000 of first
mortgage bonds, series
31, due May 1, 1.989. Proceeds—For construction
expend¬
itures, and to prepay and discharge some
$12,000,000 of
bank loans made for that
purpose. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner
Smith Inc., and Eastman
Dillon, Union Securities &
Co.
(jointly);
Equitable
Securities
Corp.;
Lehman
Brothers; Kuhn, Loeb & Co.; Blyth &
Co., Inc. Bids
Expected to be received up to 10:30
a.m.
(CDT) on
May 12.
*
'
Sports
Nov.

\

bank

Underwriters—Snow,

Swee¬
Inc., and A. C. Allyn & Co., Inc., both of

Southwestern

.

18

Arenas

(Delaware) Inc.
filed $2,000,000 of 6%
10-year convertible

of

ventures (subordinated), due Jan.
1, 1969
supplied by amendment.

Price—To be

Proceeds—$750,000 to

pay

AMF

None.

United

common

cent).

$6

per

stock

(par

one

Price—At the market (but in no
event less than
share). Proceeds—To selling stockholders.
Office
Neck, N. Y. Underwriter

—33 Great Neck
Rd., Great

None.

•




vi

••

".K.f

,at

share

by

$1.25 for each

Co., New York, for 242,299 shares

Glass

United Tourist

& Chemical

Corp*

v

Underwriter—None.

Enterprises, Inc.

Jan. 28 filed 4,500,000 shares

of class A

stock

common

(par 50 cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western- Village"

subsidiaries,

together

and for construction of

vention

Uranium Corp. of America,
Portland, Ore.
April 30,1957 filed 1,250,000 shares of common stock(par
16 cents). Price—To be suDDlied by amendment
(ex¬

Super-Sol Ltd.
(19,800

par

pected to be $1 per share). Proceeds—For exploration
Underwriter—To be named by amendment.

Israeli

ourposes.

pounds—equivalent to $11 per
funds), payable up to 90% in State of
Israel Independence Issue and Development Issue
Bonds,
and the balance in cash. Proceeds—For
expansion pro¬
gram.
Office — 79 Ben Yehuda St., Tel Aviv, Israel.
Underwriter—American Israel Basic Economy Co., New
York, N. Y.
share

in

U.

Graham

S.

Petroleum

bacher &

be

in

with

its

Underwriters—Bache

& Co. and Allen
Offering—Date indefinite.

&

Inc.
(letter of notification) 300,000 §hares of capital
At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—5-74 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.

Co., both of

shares for

Variable Annuity Policies.
year for annual premium
contracts and no less
$1,500 for single premium
contracts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.

ThermoPlastics Corp.

March

stock

Corp., Charlotte, N. C.
•
Tracerlab, Inc. (5/11-15)
April 17 filed 100,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—For
research an# development, etc.
Office —1601 Trapelo
Road, Waltham, Mass.
Underwriters—Lee Higginson
Corp. of New York and Boston.

Development Corp.,

share.

per

Proceeds

—

For

Street, Greenville,
supplied by amendment.

writer—To be

Employees

Insurance

S.

record June 2, 1959; rights to expire on or about June 18.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬

(par $1).

—

Under¬

Co.

office furniture, fixtures, equipment and office
space, by
lease or purchase.
Office — Wilmington, Del. Under*
writer—None.
Myrl L. McKee of Portland, Ore., li
President.

it United Funds, Inc., Kansas City, Mo.
April 23 filed (by amendment) an addiitonal
Income

shares,

3,000,000
shares, 2,000,000 United Science
1,000,0004 Continental Fund shares.

Fund

and

United Improvement & Investment
Corp.
March 25 filed 1,238,994 shares of common
stock

(par
$2.60), of which 809,195 shares are to be offered in
exchange for outstanding stock of Lawyers Mortgage &
on

the basis of

one

share of United for each

Corp.

Bids—Expected to be

re¬

June 2.

if Wade Drug Corp.,
April 28 filed 157,250
to be sold privately to
Wade, Jr., company's

investment.

—

on

Lynch, Pierce, Fenner & Smith, Inc.; Stone

Securities

Webster

ceived

April 16 filed 2,000,000 shares of common stock (par
$5).
Price
$10 per share. Proceeds
For acquisition of
operating properties, real and/or personal, includini

United

ders: Merrill

&

C.

and

the basis of one new share for each 20 shares held of

on

Washington, D. C.

Main

Instrument Co.

filed

if Virginia Electric & Power Co. (6/2)
April 28 filed 781,000 shares of common stock (par $8)
to be offered for subscription by common stockholders

(letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per
snare). Proceeds—
For development of oil
properties. Underwriter—First

$10.75

a
than

Underwriter—None.

March 20

—

$120

247,159 shares of capital stock (par $1)
for subscription by holders of common
debentures, at the rate of new share for
each four common shares held and eight shares for each
$100 of debentures held as of April 16, 1959 (with an
oversubscription privilege); rights to expire on May 7.
Price—$9.75 per share. Proceeds—For working capital.

equipment and to increase working capital.
Office—1626 Hertford Rd.,
Charlotte, N. C. Underwriter
—Interstate Securities

Price

4

than

being offered

sary capital

Office—South

less

Victoreen

March 26 filed 468,500 shares of common
stock. Price—
At par ($1 per share). Proceeds—For
purchase of neces¬

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock

filed $4,000,000 of

Price—No

Co., Providence, R. I.; and
Scherck, Richter Co., St. Louis, Mo.

Investment Planning Co.,

Los Angeles, Calif.

Variable Annuity Life Insurance Co. of America

April 21

gen¬
eral corporate purposes.
Underwriters—Blair & Co. Inc.,
New York; G. H. Walker &

Mangum, Okla.

—

Utility Appliance Corp.,
(4/24)
•
■

each $1,000 debenture).
Pricesupplied by amendment. Proceeds—To be used in
part to redeem and retire all the
outstanding 4% pre¬
ferred stock, to reduce or retire short-term
indebted¬
ness incurred in
January, 1959, and the balance for

Petroleum &

Price

April 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share.
Proceeds—To
selling stockholders. Office—4851 South Alameda Street,
Los Angeles 58, Calif.
Underwriter — Dempsey-Tegeler
& Co., Los Angeles, Calif.

To be

Transcon

stock:.

stock.

Inc.

common

Co., San Francisco, Calif.

May 6

(5/4-8)
April 8 filed $30,000,090 of 5% subordinated debentures
due May 1, 1.984, with warrants attached for the
pur¬
chase of 600,000 shares of common stock
(at the rate of
20

Pres¬

Utah Oil Co. of New York,

various

operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain prop¬
erties, and for the purchase of warehouse inventories.
Office—Republic National Bank Bldg., Dallas, Texas.
New York.

is

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—305 Main
St., Park City,
Utah. Underwriter—Walter Sondrup &
Co., Salt Lake
City, Utah.
mon

connection

Ore.,

1

April 11

Corp.

used

Portland,

Utah Minerals Co.

general

will

of

if Utah Concrete Pipe Co.
April 27 (letter of notification) 41,300 shares of common
stock (par $1). Price—$7.25 per share. Proceeds—To be
used to reduce long-term debt; improvement and
expan¬
sion of Ogden plant and for addition to
working capital.
Office—379-17th St., Ogden, Utah. Underwriter—Schwa-

March 19 filed 550,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—For
repayment of the company's 5% notes held by an Amer¬
ican bank, and the balance will be added to its

funds and

Griswold

■

Davenport & Co., Providence, R. I.

Texfel

Albert

ident.

A Ten Keys, Inc., Providence, R. I.
April 28 filed 973,000 shares of capital stock. Price—
$5.40 per share. Proceeds—For investment. Office—512
Hospital Trust Bldg., Providence, R. I.
Distributor—
E. R.

Grand Estes Hotel and Con¬

—

March 25 filed 250,000 shares of cemmon stock. Price—
At

a

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer
County, Colo.
Office
330 South 39th Street, Boulder, Colo. Under-writer—Mid-West Securities Corp.,
Littleton, Colo. -

public sale by cer¬
during the 12 months begin¬

Title Co.

••

States

Office—Tiffin, Ohio.

N. Y.

Price—At market. Proceeds—For investment.

Inc.

full

next

share at

stock.

common

may

Fund

Sports
Arenas^ (Delaware)
Nov. 18 filed 461,950 shares of

the
a

Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market Proceeds — To
selling stockholders.

A Sun Oil Co.
April 22 filed 15,000 memberships in the Stock Purchase

United
de-

Pmspotters, Inc. for bowling alley beds;
$350,000 to pay
for other
installations, fixtures and equipment; $85,000
expand two present establishments
by increasing
the number of
alley beds by eight at Yorktown
Heights
<*»nd by six at Wilton
Manor
Lanes, Fort Lauderdale;j>300,000 for deposits on
leaseholds, telephones and util¬
ities, and $395,000 for working capital.
Underwriter—-

'

Underwriter—Allen &

Co., Inc.,

Textron

„

to

than •% of

share, on a one-for-four
The company also proposes to offer 187,500 shares
exchange for all the outstanding common stocks of
Margate Homes, Inc., Broward Engineering Co., and
Margate Construction Co., certain outstanding debt ob¬
ligations of Margate Homes, Inc., and $62,50d in cash.
Proceeds—For working capital and general
corporate '
purposes.
Office—25 West 43rd St., New York, N. Y.

film series for distribution. Office—6 East 39th
St., New
York 16, N. Y. Underwriter—R. A. Holman &

steam-electric generating

the Coosa River in Alabama

on

allocation

more

in

ning July 1, 1959.

held,

their

out

299 additional shares at $5 per

Sterling Television Co., Inc.
(letter of notification) 200,000 shares of Class
A stock (par 25 cents). Price—$1 per share.
Proceeds—
\ For general corporate purposes, and to acquire television

each

share

Thursday, April 30, 1959

.

basis.

which may be offered for possible
tain selling stockholders

French share

.

share needed. In addition, a stockholder who
accepts
United's offer will have privileges to subscribe to 242,-

March 31

in the United States, its territories and possessions, the
right to subscribe for one additional American share for

•

round

with 200,000 shares of common stock which
be purchased under said plan.
The statement also
covers an additional
248,988 outstanding shares of com¬
mon stock,
representing the maximum number of shares

American

.

■■■'..:>

shares

purchasing not

Price—Related to the then current market price on said
Exchange. Proceeds—To Estate of D. Samuel Gottesman,
deceased. Underwriter—None.

Plan for employees of the
company and its

•

■

...

reserve

Packaging Corp.
April 1 filed 43,067 outstanding shares of common stock
and 28,834 outstanding shares of $1.20 convertible pre¬
ferred stock (par $20) to be offered from time to time
on the New York Stock
Exchange or off the Exchange.

1,000,000 capital shares (two American shares represent
one capital share). The company is now
offering holders
of its American shares and holders of its French shares

©hare for each

■

of Lawyers before its recent one-for-ten
split, or 23-> shares of United for each share
of Lawyers after such split Lawyers' stockholders
may

(letter of notification) 10,000 shares of com¬
mon stock
(par $25). Price—$27.50 per share. Proceeds
—To purchase equipment, erect and equip a semi-fire¬
proof building and lor working capital.
Office—3016
Austin Highway, San Antonio, Texas.
Underwriter —
Bache & Co., San Antonio, Texas.
/

New York 5,

■

four

31

Standard

Hotel

Sheridan-Belmont

Electric

■

I

Shreveport, La.
shares of class B common stock
retail druggists through James D.
principal officer and stockholder,
who will receive a commission of $1.50 per share. Price
—$10 per share. Proceeds—To purchase additional ma¬
chinery and equipment; research and experimentation;
for

initial

contracts;

and

purchase

of

additional

com¬

panies.
•
Washington Gas Light Co.
April 7 filed 100,386 shares of $4.60 convertible preferred
stock (no par) being offered for subscription by com¬
mon
stockholders of record April 27, 1959 at the rate
of one new share fpr each 14 common shares held;: rights
to expire on May 12, 1959. Price—$100 per share. Pro¬

ceeds—For

construction

program.

Underwriters

—

The

First Boston

Corp., New York; and Johnston, Lemon &
Co., Washington, D. C.
Western Wood Fiber Co.

March 5 filed 100,000 shares of common stock (par $10)and 40,000 shares of preferred stock (par
At par." Proceeds—F.or construction- and

$25)./Price—:
equipment; of

Number 5842

Volume 389

.

.

.

Underwriter

company's plant and for working capital. Office—300
Montgomery St., -San Francisco, CaliX r Underwriter—■
None.
; */'.

Underwriter—To be determined by
Brothers

/

.

on

Savings Bank of

before May 11,

or

competitive bidding.

1959 for 105,600 additional

Witter & Co.; Blyth & Co., Inc.;
Co.; Eastman Dillon, Union Securi¬
Co.; and Dewar & Co.

Underwriters

Halsey, Stuart & Co. Inc.; Lehoyin
Eastman Dillon, Union Securities & Co.

Dean

—

William R. Staats &
ties &

(jointly); The First Boston Corp. and Harriman Ripley
(jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be received
up to noon (EDT) on May 25 at office of West Penn
Electric Co., 50 Broad Street, New York, N. Y.

^Florida Power & Light Co. (6/3)
April 27 it was reported that the company plans to issue
and sell $25,000,000 of first mortgage bonds. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.:Inc.; Merrill Lynch, Pierce,
Fenner & Smith, Inc. and Kidder, Peabody & Co. (joint¬
ly); White, Weld & Co.; The First Boston Corp. Bids—
Expected to be received up to 11 a.m. (EDT) on June 3.

Western

Kentucky Gas Co.
April 13 (letter of notification) 8,000 shares of common
stock (par $5). Price—To be supplied by amendment.
Proceeds—To selling stockholder. Office—608 Frederica

Street, Ovvensboro, Ky. Underwriters—Equitable Secu¬
rities Corp., Nashville, Tenn.; and Almstedt Brothers,
Louisville, Ky. Offering—Expected this week.

was

announced that the company plans to issue

and sell

Oct.

$18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders

terest

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬

'

Wilmington Country Club, Wilmington, Del.
27 filed $500,000 of debentures due 1991 (non In¬
bearing) and 800 shares of common stock (pai
$25) to be offered to members of this club and of
Concord Ltd. Price—$375 per common share and $1,000
per debenture.' Proceeds — To develop property and
build certain facilities. Underwriter—None.
//.";

body j& Co. and Shields & Co. (jointly); Lehman Broth¬
ers;; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co.

share. Proceeds—$300,000 will be used for

per

for

Aug.

14.

To repay bank loans and for construction
Underwriter—To be determined by competi¬
tive bidding.
Probable biddersr Lehman Brothers and

Proceeds

Riter

ceived

Feb. 10 it

Bids—Expected to

ing, the amount and type of which has not

•

^Chesapeake & Ohio Ry.

(5/14)

of new preferred stock (par

$100).

To be named later. Registration

—

Union Electric Co.

Ex¬

(Mo.)

Feb.

23, J. W. McAfee, President, stated that the
pany plans to sell about $30,000,000 of additional
stock

later

this

com¬
com¬

through rights to common
stockholders. Proceeds—For expansion program. Under¬
writer—May be determined by competitive bidding.
Probable bidders: Lehman Brothers; White, Weld & Co;,

mon

year

(6/23)
and Shields & Co. (jointly); Merrill Lynch, Pierce, Fen¬
Chandler, President, announced com¬
ner
& Smith, Inc. Offering—Expected toward the end
pany plans issue and sale of $20,000,000 25-year first
of the second or third quarter of 1959.
mortgage bonds.
Proceeds —For capital expenditures.
Underwriter—To be determined by competitive bidding.
United Gas Improvement Co. (6/16)
Probable bidders: Halsey, Stuart & Co. Inc.; The First
April 7 it was reported that the company plans to issue
Boston Corp.; Glore, Forgan & Co.; Blyth & Co. Inc.
.r,f*nd sell $10,000,000 of first mortgage^.bonds due 1984.
Bids—Tentatively planned to be received on June 23.;
Underwriter—To be determined by;<&n:fi3etitfve bidding.
Registration—Expected at encLof May. J .r r {« v Probable bidders: Halsey, Stuart & Cb^Thc.; White, Weld
Northern Illinois Gas Co.

capital expendi¬
tures. Underwriter
To be determined by competitive
bidding. Probable bidders: Eastman Dillon, Union Secu¬
rities & Co.; The First Boston Corp.; Morgan Stanley &
Co.; Stone & Webster Securities Corp. Bids—Expected
To reimburse treasury for

March 25, Marvin

—

to be received on June 9.

Natural Gas Co.

Paso

—

pected about May 1.

Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬
ceived on June 25.
V

(6/9)

24,

Underwriter

by

ly);

April 16 it was announced that the company has applied
to the Federal Power Commission for authority to issue

El

Ltd., Toronto, Canada
R. C. Dobson, President, announced- that
the company plans to raise approximately $1,000,000 in
the near future, partially through debt financing and
partially through the sale of additional common stock.

construction

determined

was

Teleflex

Co., New York.

program.
Underwriter—To
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬

Proceeds—For

be

Salomon Bros. & Hutzler.

—

each six shares

March

equipment trust certificates due annually in 1-toyears. Probable bidders: Halsey, Stuart & Co. Inc.;

and sell 250,000 shares

share.

it

Spector Freight System/Inc.
4
;
'
16 this company sought ICC approval for issuance
of 200,000 shares of class A common stock (par $1), of
which 60,000 shares will be sold for the account of sell¬
ing stockholders Proceeds — To pay outstanding loans
and for additional working capital. Underwriter—A. G.
Becker & Co., Inc., Chicago, 111.

Mississippi Power Co. (6/25)
Dec. 10 it was announced that this company plans to
Issue and sell $5,000,000 of 30-year first mortgage bonds.

000 of

Duke Power Co.

per

Diego

16

Feb.

1959; rights to expire on May 8.
Proceeds—To increase capital and

surplus. Underwriter—A. M. Kidder &

April 27 it was reported that the company plans to re¬
ceive bids on May 14 for the purchase from it of $2,400,-

Proceeds

Imperial Corp.
reported that the company plans to
offer an additional 1,273,720 shares of common stock.
Proceeds—For further acquisitions. Underwriter—J. A.
Hogle & Co., Salt Lake City and New York.

held of record April 22,

Canada.

15

San

March

(jointly); Kuhn, Loeb &

Long Island Trust Co.
April 23 the bank offered to its stockholders the right
to subscribe for 70,186 additional shares of capital stock

Price—$20

(6/2)

was

June 2.

on

Equitable Securities Corp.; White,

(par $5) at the rate of one new share for

yet been
require¬

(jointly); Morgan Stanley & Co. and Drexel &
(jointly). Bids—Tentatively expected to be received

Co.

Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
(jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly). Offering—Expected in May or

its stock¬

as

construction

Brothers

Securities & Co.

before July 10, 395,9 for 675,000

'

.

announced that the company plans issue
and
sale of $50,000,000 first and refunding mortgage
bonds due June 1, 1989.
Proceeds — For construction
program. Underwriter—To be determned by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Kuhn, Loeb & Co. and Lehman

City Power & Light Co.
reported that the company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &

subscribe
additional shares;
of capital stock on the basis of one new share for each
eight shares held. Price—$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,
1.960.
Subscription Agent—Royal Trust Co., Montreal,
or

on

meet

Public Service Electric & Gas Co.

April 22 it

Lynch, Pierce, Fenner & Smith Inc.

•

April 7, it was announced Bank will offer to
holders of record April 17, 3959 the right to

:

ments for 3959.

and sell

(5/1)

Proceeds—To

determined.

June.

Montreal

planning
Un¬

bonds.

^

(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬

surplus.

Bank of

of first mortgage

To be determined by competitive bidding.

Public Service Co. of New Hampshire

Kansas

and

$15,000,000

—

April 22 it was stated in the company's annual report
that it plans the raising of $13,250,000 from outside
sources. This new money will come partially from shortterm obligations but principally from permanent financ¬

ly). Offering—Expected during August.

(jointly);

: .>

,

•
Philadelphia Electric .Co..! -/
April 8 it was announced company plans to offer about
640,000 additional shares of common stock to common
stockholders of record on or about June 1; rights to
expire on June 20. Proceeds—For construction program.
Underwriters—Drexel & Co. and Morgan Stanley & Co.
Offering—Expected in June. v'

ding. Probable bidders: Halsey, Stuart & Co. Inc.; White,
& Co.; Kidder, Peabody & Co.; Salomon Bros. &

Inc.

\

;

Halsey, Stuart & Co. Inc.; Equitablo
Eastman Dillon,
Pierce, Fennejf
& Smith Inc. and White, Weld & Co. (jointly); The First
Boston Corp. and Harriman Ripley & Co. Inc. (jointly).
Offering—Expected about mid-year.:
. - .f
V
; .>

Weld

Weld & Co. and Shields & Co.

v.

Probable bidders:

(

Co.,

I

:

Securities Corp.; Kidder, Peabody & Co.;
Union Securities & Co., Merrill Lnych,

plating the sale of $8,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bid¬

(5/29)
Feb. 26 stockholders of the Bank approved the sale of
2,000 shares of capital stock (par $100) to holders of
record May 29, 3959, on the basis of one new share for
each three shares held; rights to expire on June 30.
Price—$150 per share.
Proceeds—To increase capital

•

announced that the company is

was

of

sale

the

Jersey Central Power & Light Co.
10 it was announced tbat the company is contem¬

Washington, D. C.

July 22.

on

Pennsylvania Electric Co.

Dec. 29 it was

Bank of Commerce,

(jointly); The First Boston Corp., Blyth &s

Co.

Pierce, Fenner & Smith Inc. Bids—Expected to be re¬

Feb.

Prospective Offerings

&

Co., Inc. and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill Lynch,

Northern Ry.
(5/6)
expected to be received by the company on
for the purchase from it of about $4,500,000
equipment.Jrust certificates. Probable bidders: Halsey,
Stuart & Co. j&ic.. Salomon Bros. & Hutzler.

I

—

program.

Sept. 10.

Hutzler and Merrill

about 714,000 additional shares. of
subscription by common stockholders
the basis of one new share for each 20 shares held.
offering

stock for

6

payment?

(7/22)

reported that the company also is con¬

common

are

May

International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co. Office—319 E. "A" St., Casper, Wyo.
Underwriter—None.

on

(Minn.)

Power Co.

States
was

sidering

Great

Bids

contract to purchase shares of

on

received

oe

Northern

on

(jointly); Harriman Ripley & Co. Inc.

Registration—Planned

Wyoming Corp.
Nov. 17 filed 1,449,307 shares of common stock. Of these
shares 1,199,307 are subject to partially completed sub- •
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new
share for each 2.33 shares held on that date. Price—$4

•

March 31 it

derwriter

(9/10)

Georgia Power Co.
Dec. 10 it

(jointly); Lehman Brothers and Riter & Co. (jointly);
& Smith, Inc.; Harriman
Ripley & Co. Inc., and Eastman Dillon, Union Securities
& Co. (jointly); Kuhn, Loeb & Co.; Smith, Barney & Co.

Merrill Lynch, Pierce,- Fenner

,

22

scribe

& Co. Inc.

•

time in May.

shares of capital stock (par $5) on the basis of one new
share for each nine shares held. Price—$26 per share.

bidders:
and

some

Diego, Calif.
it was announced that Bank is offering its
stockholders of record April 21, 1959 the right to sub¬
April

April 17 filed $14,000,000 of first mortgage bonds, series
H, due June 1, 1989. Proceeds—Together with other
funds, will be applied to the company's construction pro¬
gram and repayment of bank loans incurred thereof.
Probable

Myron A. Lomasney & Co., New York.

First National Trust &
San

(5/25)

Power Co.

West Penn

—

Offering—Expected
•

45

(2025)

The Commercial and Financial Chronicle

-

April 28
increasing the authorized preferred stock to.
1,000,600 shares from 472,229 shares, and the common
stock to 25,300,000 shares from 20,300,000 shares.^ Pro¬
ceeds
For major expansion program. Underwriter —
March 4 it
vote

was

announced stockholders will on

on

—

Electronic Mechanical Specialty

an

Co.

(Calif.)

reported that the company is planning
offering of about 100,000 shares of common stock.

March 31 it

was

Slock Marketed

be

gram.

Underwriter—To be determined by competitive
The First Boston Corp.

bidding: Blyth & Co., Inc. and

&

retailer-franchised
kets and in

sites

and

Sentry

Mar¬

interim investments in

development

prior

to

resale.




rants, each for the purchase of one
share
of common stock at $12

Pearson

through April 30, 1969. One war¬
rant
is
detachable immediately

Placed

and the other on or after

made April
Company will use the proceeds
of Godfrey to provide inventory and working
Company common stock ($5 par) capital for lour new supermarkets
at a price of $13.25 per share by
in the amount of some $309,400,
a group headed by Taylor, Rogers
and to provide fixtures and equip¬
A grouo headed by Blair & Co.,
& Tracy, Inc., Chicago. Associate
ment with respect thereto in the Inc., New York City, made public
underwriters consisted of: Bacon, amount of $635,000; some $30,000
offering on April 24 of two issues
Whipple & Co.; Bear, Stearns & will be used to provide equip¬ of Dorsey Corporation securities
Co.; Cruttenden, Podesta & Co.; ment and improvements for Crest- as follows: 32,500 shares of 6%
Loewi
&
Co.,
Inc.;
Dempseywood Bakery, a subsidiary; and cumulative preferred stock, series
Tegeler & Co.; Marshall Company;
the balance will be used for in¬ A at a price of $50 per share.
;Kiser, Cohn & Shumaker, Inc.;
McMaster Hutchinson & Co.; Rod¬ vestments in controlling stock in Each preferred carries two war¬
Public offering was
of 160,000 shares

Boston

and is considering the offering and
$10,000,000 of new preferred stock. Proceeds—To
used to repay bank loans and for construction pro¬

Co., Inc.
30

Co.; Merrill Lynch, Pierce, Fenner & Smith and East¬
Dillon, Union Securities & Co. (jointly); The First
Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.; Drexel & Co. and
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received on June 36.
Registration—Planned for
around May 15.

man

its financing plans,

& Renshaw; Straus, Blosser
McDowell; Bankers Bond Co.;
George K. Baum & Co.; McDonald
Evans & Co.; and Taussig, Day &

man

Godfrey Co. Common

&

(Minn.)
that the company has revised

Power Co.

March 31 it was reported
sale of

White, Weld & Co., New York.
•

Northern States
1

Dorsey Corp, Issues

Offered to Investors

1960;
stock

150,000 shares of common
($1 par) at a price of $11

per share.
Associates
are

April 30,

Bache &

Bonham;

in

the

underwriting

Co.; Sellers, Doe &

and

First

Cleveland

Corp.

W. L. Haberthier Opens
LIMON, Colo.—"Wilbert L. Ha¬
berthier is engaging in a securi¬
ties business from offices here.

lic

Market

Holman & Co., Inc., New

R. A.
York

Corp. Common

on

City, on April 24 made pub¬

offering

Pearson

175,000

of

shares

of

Corporation comon stock

(par 25 cents), at a price of $1 per
share.
repay

Proceeds

will be

used

to

bank loans and for expan¬

sion purposes.

Company presently

manufactures

recreational

glass boats.

fiber¬

46

The Commercial and Financial Chronicle

(2026)

the

U. S. Investors

say

off

Mutual Funds

Show Confidence in

continued

past three years, Hardwick Stires,
Chairman of The Committee of
Canadian

Companies,

Investment

reported.
Stires, President of Scudder
Fund of Canada Ltd., noted that
Mr.

portfolio investment in Ca¬
securities
totaled
$599,-

S.

U.

nadian

000,000 in 1958, as compared with
$563,000,000 in 1957 and $499,000,1956.

in

000

dur¬

three-year period char¬
by wide fluctuations in
market prices continues to dem¬
ing

presenting recently the re¬
sults
of
a
study
of
open-end
investment company investments,
Herbert R. Anderson,
the
National

Association

of

to

occasion

supply

a

acterized

a

analysis of the
size

of

mutual

the

fund

industry

relation to the

long-term prospects of the
Canadian
economy,"
the
CCIC
Chairman emphasized. >

growth
in
other
impor¬

that

investor

S.

U.

maintains

the

The steady growth in U. S. port¬

-

folio

investment

aided

by

in

Canada

is

the policy of the eight

publicly owned Canadian invest¬
ment companies which
continu¬
ously retain their earnings from
securities

Canadian

them

re-invest

and

investments

in

Canadian

securities, Mr. Stires pointed out.
"By adhering to this policy," he

said, "the eight registered Cana¬
dian companies perform a mutu¬
ally beneficial service for their
130,000 U. S. shareholders and for
the growing Canadian economy,
since

the

re-invested

dollars

main constantly at work

re¬

in Can¬

ada."

tant

of

March

the

of

assets

Canadian

1, 1959, total net
eight
registered

investment

Herbert R. Anderson

the

nation's

(Special to The Financial Chronic^;

-i...

LOS

ANGELES, Cal.-John G.
Dofflemyre &

Co.,

210

West Seventh Street, members of
the Pacific Coast Stock Exchange.

Mr. Anderson

"To

a

associated
lievers
of

great many of us long
with, and, firm
be¬

in,

favorable

—

their

questioning—about
size is confusing.
"'Fantastic'
but

are

used

present

adjectives

the

of

describe

to

and

'phenomenal,1

01*

few

a

much

funds,

mutual

comment

the

the

sales

or

assets of investment
Questions are raised
their control of industry.

growth in
companies.
about

Both

market
laid

often

are

and

rises

their

at
is

what

LOS ANGELES,

door.

truth—as

the

to

Shake

S.

with

become

has

Shearson,

connected

Hammill

&

520 South Grand Avenue.

past he

was

Co.,

In the

with Akin-Lambert

Co.

be

the

that

is

the

assets

1940
that

Halve

of

base

quite

was

double

base—or

Investors

—

as

lot
to do with comparative figures.
a

"Of greater importance than the

dollar

increase

in

their

total

as¬

of

growth in the total economy,
today's assets of both closed and

than

funds have

doubled

of

|

|

list of securities selected for

|

|
|

possible long-term growth of

|

capital and income.

j

i

1

as

a

the

the

open-end

companies, or
the approximate

funds,

26-fold

increase

becomes

the

in

assets

since

slightly less than

value

proportion

as a

of New

listed

a

York

stocks.

State

Again,

however, the low 1940 base makes
even that figure sound larger than
it really is, for the present owner¬
ship by mutual funds of all New
York Stock Exchange listed stocks
is but

modest 3.4%. That surely
sound very formidable

a

—nor

a

1940

on

mutual

|

ESTABLISHED 1925

more

value of all
just the New
York Stock Exchange. In the case

does

A mutual fund investing in

little

since

percentage of
stocks listed

i

|

not

is it.

"Before going further with

figures,

own

perspective
rest of

let's

seek
reference

by

our

little
to the

a

financial America.

"Many
issue

of

have seen

may

the

magazine

recent

a

'Business

concerning the growth of
pension funds, with fig¬

J Incorporated j

private

I

|

tions.

J

type alone were estimated at a
present value of $33 billion, with

J
I
I

A mutual fund investing in
list

J
»

I

on

other

current ' annual

billion and
1965

of

know

A prospectus on each
fund is available from
your

investment dealer.

j

The Parker Corporation

■

200 Berkeley Street

'

I

Boston, Mass.

i




ket

an

$77

how

rise

billion

growth

assets

of

of

much

may

I
further

a

this

$4%

coun¬

to

some

invested

$5,301,143

in

funds

133rd

Quarterly Report.
production for March
surpassing the
previous peak of December, 1956,"
they told stockholders. "Personal
income, too, reached a new high
showing
the
largest
monthrtomonth gain since 1955.
Business
spending for plant and equipment
appears to have turned the cor¬
ner
with a modest expansion in
"Industrial

High

set

record

new

a

be a record year for total
output and for business profits."
The Quarterly Report revealed

of

net new
Investing
period.
The

Street

Broad

during

shares

now

shown

York

that

Stock

Ex¬

funds, let's take
current

their

at

market

activity.

the

.

total

that

$3,172,821

rated

net

assets

Investors

of

Incorpo¬

$306,364,365
Outstanding
equalled
33,242,673, the
largest
of investments.
:v-"
number at any quarter-end in the
Per share asset value reached
history of Incorporated Investors.
a
new
quarter - e n:d high of' Share value during the 12 months
$12.96 at March 31, which- was ended March 31 rose from $6.94
moderately above the <$12,675 ut to $9.22, an increase of 41% after
the start of the year.
(Share fig¬
adding back the capital gains dis¬
31.

March

at

were

Shares

fact,

would like

I

that further

to

to refer

again

on.

"However, to give the figure,
the closely estimated volume of

add

to

assets

insurance
up

to

$107

currently are being
to by about $5 billion a
Savings and loan association
now

at

used in the March 31

quar-< tribution

terly report were adjusted to re¬
2-for-l

the

flect

April
the

stock

split

"Taking- into

1.)

account
distribution
from

31

Dec.

12 months ended March 31."

accounted for
at

the

of

dollar

of

volume

Investments

March

in

This

31.

71,

.

$47

Telephone; Florida Power; Gulf
States Utilities; Oklahoma Gas &
Electric; Spiegel; andy Montgom¬
ery Ward.
Holdings were elimi¬
nated during this last quarter in
Gillette;
Halliburton
Oil
Well

■

stocks

common

85.8%

of net assets

was

about

the

Cementing; Honolulu Oil; Repub¬
Natural
Gas; St. Lawrence

proportion as at the start
of the year but up from 77.2%
at March 31, 1958, it was noted
in the report.
' 7'-7777;777':777
During the quarter, new com¬
more
than the Tip of the tail' mon
stock positions were estab¬
insofar as 'dog-wagging' is con¬
lished with the purchase, of Gen¬
cerned.
eral Refractories and
American
"I

said before that I would like

to refer back

same

lic

Corp.; Sunray Mid-Continent Oil;
Corp.; and White Eagle

Tennessee

Oil.

'

Machine

&

Foundry.

that

the: beam
managements
of >

professional
funds

are

'V.J

priced

generally, to sell over¬
buy
undervalued

and

have

doubts

one

Assets

plaved

about.

Who

in
can

!

ber

,

bringing
challenge

this
the

desirability of its continuance?
"But let's bring even this broad
premise down to earth—to the in¬

vestor,

both

individual

and

in¬

stitutional.

March 31, 1959,

increased 9% over
while number of shares
outstanding rose to 23,131,766, a
gain of 11% in the same period. ' .
a

year ago

As

of

March

1959, Fidelity
value per
This represents a

31,

Fund reported net asset

share of $16.11.

"Implicit
in
the
continued
34% increase over net asset per
broadening of the acceptance of
share value of $12 on March 31,
equity
investment
is
a
satis¬
1958, after adjusting for a dis¬
factory
investment
experience.
tribution of $0.54 per share from
Mutual funds have been called
'the poor man's investment coun¬ long-term capital gains realized
in 1958 and paid on Feb. 9, 1959.
sel,' and we welcome that char¬
acterization despite the large and

increasing number
investors

that

use

event,

any

financial

of substantial

we

services.

our

the

are

only

institution

through
investors
generally
can
share directly in the risks and
rewards
of
equity
investment
under
professional management,
which

conservatively, and with the
tection

of

broad

and continued

pro¬

diversification

supervision—not to

Common

stock

amounted to
net

assets

with

31,

Net

1958.

of the Fund's

March

on

compared
States

investments

95.2%

87.6%

cash

31,
on

1959,
March

and United
securities

Government

amounted

to

1.3%

of

compared with 4.1%

net

a

assets

year

the

Chemical

quarter

included

Corporation,

Allied

Johns-

mention Federal and State regula¬

Manville Corporation

tion.

Company. New commitments

"How big we should be—or will
be

is

—

a

matter

of

individual

ago.

Major securities increases dur¬

ing

point

of

the

and

economy

needs, the relationship of
to

the

nancial

economy

and to

institutions,

or

its

our

size

and Martin
were

made in American Telephone and

Telegraph Company, du Pont de

other fi¬

to

the

billion; long-range financial well-being of

Tea Company.

.

re¬

$63,920,127

vs.

;
31, 1958. Outstanding
9,560,256 compare with

a year

ago.
a

After

dis¬

a

share from net

capital gains in January, 1959,. net
asset value per share was $9.82

Up 49%

compared with $7.64 at March 31,
1958:.;.
;
v'V':
.7 '

ord

continued

future?

the

1959

tribution of 450

Fidelity Fund, Inc., reports rec¬
highs in total net assets, num¬
of shareholders, and number
growth of our country. Implicit in of shares,
outstanding in quarter
this is the need for vast amounts
ended March 31, 1959.
Total net
of additional
equity capital, neces¬ assets of $372,639,741 showed a
sitating a continued broadening of 49% increase over net assets of
equity ownership. No one chal¬ $249,905,974 on March
31, 1958.
lenges the part that mutual funds Number
of
shareholders
as
of
"So—what of the

of

8,369^303

issues

"No

March

shares

T1

force within the market by reason
of our tendency, as compared with
the public

March 31,

at

Corp.
.v

Shares

American

Selected

•

ports total net assets of $93,922,958
oh

constructive

a

Analyzes

Economic Trends

Investment

to this

reasonable premise

■

Rubin

point of net positions were increased
by the
purchases. The mutual funds do
purchase of Westinghouse... Elec¬
sell,, as well, asjouy, and I,submit
tric, Anaconda Copper and Suna

paid in Febru¬

commitments in British Columbia

realized/ gain," Messrs. Randolph
and Brown said, "asset value per
share rose by about 21.6% in the

Stock Exchange amounted to but

of $0.57

1959.
'77...
During the three months, In¬
corporated Investors made new
ary,

oil

opinion. However, from the stand¬ Nemours, Great Atlantic & Pacific

and

are

■

the net purchases by mutual funds
of stocks listed on the New York

mar¬

that figure

life
are

•

.

ures

"I think it would be agreed that
only net purchases are of particu¬
lar significance—as
a
matter of

don't

1965.

added
year.

institu¬

estimated worth by

"Meanwhile,
company

funds

billion—and

estimated for
*

financial

Retirement

I

J
I

ures

I

income.

L~

|

a

of securities for current

look

In

Week'

Income Fund

New

other than mutual
a

mutual

—

Exchange

j Incorporated j
|

of

be twice
or only one-half
great. 'Terminal points' have

of

FREE ON REQUEST

back

turn

words,

big

a

funds.

96.6%

as

4V2 times increase

I

mutual

However, the first item

noted

funds'

low.

1940

EITHER PROSPECTUS

Assets at New

could

other

In

trading on that Exchange in 1958.
While this figure is up from the
future?
1.4% average for the six years,
1953 through 1958, I'm sure you
"It is a fact that from 1940 to
the end of 1958, total assets of would agree that 21/4%
is little

the present and for the probable

open-end

Calif.—Stanley

forecast

Devens, Chairman and President
Incorporated Investors, in the

2.26%

declines

sets is the fact that by reason

(Special to The Financial Chronicle)

made.

change listed stocks is owned by

follows:

as

the

Shearson, Hammill Adds

was

of

Fund's

balance of the gain in
rather interesting—and, I believe
hetf assets was■ accounted for by
surprising — figures relative to improvement in'the market value

it—and the rate of increase would

Kircher has become affiliated with

Marache,

been

"Having ' already

vestment structure.
remarked

increase.

Marache, Dofflemyre

Prosperity for 1959

in the future?"

.

to

With

41% 11112 Months

Broad Street's

savings bank deposits at
$34 billion, time deposits of com¬
mercial banks at $63 billion; U. S.

in¬

companies,
which began operations in June,
1954,
totaled
$411,924,615, 1 (in mutual funds increased from less
U. S. dollars), as compared with than
$509,000 to about
$13
$301,043,767 (in U. S. dollars) a billion—and that is a significant
year ago.

present

mutual

"Let's

compo¬

nents

its

by William A. Parker and Charles

everything is big. It's
try!

phenomenal

"Just

of

As

achieved

Are the Funds?

have

in

portfolio
confidence in

the

onstrate

Incorporate!I"s Net
Up ;

have that relationship
against
an
expanding

to

Thursday, April 30, 1959

.

Asset Value

be

■

ompanijes,

took

times

to

•

! nvestment
C

can

.

Net assets of Broad Street In¬
President of Savings Bonds held by individuals
are
outstanding to the tune of vesting Corporation totaled a rec¬
$48 billion.
ord $148,075,949 at March 31, up
"A
recent news story put the from
$139,601,985* three months
assets
of trust funds supervised earlier,
it
was
announced
by
by one bank at more than $25 Francis F. Randolph, Chairman
billion.
There are
no
published of the Board, and Fred E. Brown,
figures
lor
bank
administered President, in the March 3f7 quar¬
personal trusts, but estimates of terly report of this diversified
investment 7 plans
now; reported
$90 billion, with about $45 billion mutual fund.
Messrs. Randolph
for iJ.959.
Nineteen
fifty-nine
in preferred and common stocks, and Brown said that Shareholders

factual

sustained expansion

"This

In

who

shares

our

four

or

pr

economy

Just How Big

in each of the

to grow

three

By ROBERT R. RICH

portfolio
investment in Canadian securities

in

investment

S.

U.

annual

public,

that all would not be better
—right now—were the total

size

Canada's Growth
Total

investing

.

At

.

March

31

stocks

common,

represented 96.2%

of assets, cor¬
porate
bonds
and notes
2.9%,
cash 0.9%
The five largest in¬
.

.

dustry holdings in common stocks
oil 10.3%, steel 9.7%, elec¬
trical & electronics 9.3%, metal

were

(non-ferrous), 7.8%, electric util¬
ity 6.9%. •
.7;'
Edward P. Rubin, President, in
reporting to shareholders, states:
"The economy seems now to Have
.

recovered most of the ground lost

iii the 1957-58 recession. The Fed¬
eral

Reserve Board, Index of In¬
Production
is within

dustrial

.

.

.

2

points of the highest level ever
recorded, and there is reason to
believe the second quarter will
equal or exceed previous highs.
...

It is reasonable to assume that

corporate earnings are more than

keeping pace with the
production recovery.
.

National
be

at

an

Product
annual

is

.

rate of
Gross
.

estimated

to

rate of $464 bil¬

all-time high which
with a $427 billion rate
quarter. Personal
income and personal consumption
expenditures have risen to,new
lion,

new

a

compares

in the first 1958

highs, despite some lag in reduc¬
tion of unemployment. Some fac¬
tors in the economy are lagging:
exports have not yet risen; farm
net income, after rising last year,
may recede this year; plant and
equipment expenditures are rising
only slowly. Part of the improve¬
ment in some industries is due to

Holdings of Amer¬
Company, International inventory accumulation in antici¬
pation
of strikes* However,
it
Minerals and Chemicals Corpora¬
seems
prudent fo be patient so
tion and Coca-Cola Company were
long as the balance of economic
eliminated from the portfolio.
factors appears to be pbihting upican

Can

-

Number 5842

Volume 189

only

process

-lasted

two years

Various

Clark, Kroger, Louisiana Land &

start
year

rvhav'e

often
orVlongef; ". 1 .V 'f
/■

Pass $100 Million
•>'Neft#afesets

of

National

million
mark
during, the first
bility. • The
SEG :haswarned
against manipulative", practices. On quarter pf 1959 and stood at a
record-.. high
of - $102,917,014 A at
another front, the SEC is"
study^* March •>-31 for the growth stock
'l ing possible effects of size of inftiifd of the Broad Street Group
vestment
companies.
This com¬
Of " Mjirtual. Funds, it
was
an¬
pany
favors any-prudent v steps
nounced by Francis F. Randolph,.
taken to preserve! a sound invest¬
Chairman, and • Fred r. E. Brown,
ment atmosphere.! .The manPresident, in their quarterly .re¬
iagement believes its
operations
This figure
port to stockholders.
are quite flexible [enough to concompared with $94,001,772 at Dec.
tinue to seek the same .investment

ifutui^^V-'Whieh; 3if: '1958!; and y represented

'

iuoress

?•'

^rsft;T^9-vflu^rter, Se-

the

per

into

shareholders

The

totaled

number

for

more

^lected lApneriegn added- phe,-hew
.; stock to itk
|o|tfolio,-vUnited Air¬

craft.
Inerea^e^ ; in priorv stock
^holdings; include American -Vis¬
cose, Anaconda,' Atlantic Refining,
Bendix
Aviation, ;Cities Service,

quarter-end

^aL gain of .67% from 5,783 on

March

1958, according to the

31,

Chairman and President.
The

disclosed

report

that

gain

a

> Per

record

share asset value reached. a
at; March

$12.45

31—the

Phbtqcppyy Equipment and Piper
Aircraft.

Holdings increased

v

-

i

.

It eliminated from the
-

of

sales

POWER COMPANY, Inc.

were

clared

197th Consecutive Cash Dividend
-

Common Stock

on

(>«,

A regular quarterly dividend of Forty"/A two cents ($.42) per share on the
m

WILLIAM If. BEATLY.

/

United State* Pipe and

W. J. ROSE, Secretary

NOTICES

share

The Board of

Directors this day

declared
(300
share on the outstanding Common Stock
of this Company, payable June 15,, 1959,
to stockholders of record on June 1, 1959.
a>

quarterly dividend of thirty cents

per

DIVIDEND NO. 78

Hudson Bay

The transfer books will

>

Smelting Co., Limited
Dividend

a

Mining

United States Pipe

and

of

seventy-five

a

JOHN W. BRENNAN, Secretary & Treasurer

cents

TheUNITiD Corporation

May 15, 1959.', A '

on

Treasurers

The Board of Directors has

cents per

quarterly dividend of sixty cents ($.60) per
payable June 8,1959, to stock¬
record at the close of business May 15, 1959.
christian,

Secretary

i

1959 to stockholders of
record at the close of busi¬
12,

May 25, 1959.

COMPANY

RUBBER

share

per

on

its

UNION

34 cents per

share

on

its

share

on

CARBIDE

*

par)

its

($15 par)

Common Stock

A cash dividend of

payable June 1, 1959, to
stockholders of record May 15, 1959.
.

EDWARD L. SHUTTS,
K

Common

<};

10,

*

'

.

y

:•

»'s

HC

COMMON AND

PREFERRED DIVIDENDS

The Board of Directors has declared a

..me per share on

.It.-'

L,| Secretary '

'■-'•'•£

1959

to

stockholders of record

the close of business

quarterly dividend of

H. G. DUSCH

JOHN F. SHANKLIN
Secretary and Treasurer
UNION

National

CARBIDE

.V

Corporation

|f A.

The
Continuous Ccsh Dividends Have Been

Board

clared

Organization in 7920

25tf

June

transfer

^ALUS-CHALMERS

de¬

New York. April

share

the outstand¬

on

on

May

books

The

II, 1959.

will

not

close.

on

May 15, 1959.

.

J. J. MAHER, Secretory.

Treasurer

April 23,1959.

28. 195*.

(70<) per
share on the Common Stock without par
value of Southern Railway Company has
today been declared out of the surplus
of net profits of the Company for the
fiscal year ended December 31, 1958,
payable on June 15, 1959, to stock¬
holders of record of the close of business
A dividend of Seventy centi

PAUL C. JAMESON

MFG. CO.
,

has

Directors

1, 1959, to stockholders of

record

V

DIVIDEND NOTICE

quarterly dividend of

a

per

of

Company
NOTICE

ing Common Stock, payable on

NOtICE

lyiFfrrtNG

Railway

1

DIVIDEND

Paid Since

Southern

Chemical
X

___

CORPORATION

Distillers
and

U-

at

May 4X1959.

Vice President & Secretary

April 28,1959

If

Ninety cents

(90^) per share on the outstanding
capital stock of this Corporation
has been declared, payable June 1,

all Common Stock outstanding and

regular semi-annual dividend of $2.50 per share on the 5%
-[Preferred Stock, both payable May 15, 1959 to stock¬
holders of record a1 the close of business May 1, 1959.

1959|

Chairman

April 25, 1959

■

-

rec¬

15,1959.

April 27,

following regular quarterly dividends:

share has been

V'-b

declared the

The Board of Directors has

all dividends

.

Quarterly dividend No.V 153

May

April 24, 1959
DIVIDEND NOTICE

GOODALL
i

;

President

44 cents per

1959, to stockholders of

the COM¬

4%% Preferred Stock ($30 par)

DIVIDEND

ord

on

10

of

Income

share

STOCK, payable June

MON

UTILITIES COMPANY

$1.76 Conv. Preferred Stock ($30

Stock, payable; June

dividend from Net

a

Investment

35% cents

v iiM-

•>

($.75) (Canadian) per share has been
declared on the Capital Stock of this

Company has

oration

the

remain open.

Foundry Company

and

its Common stock,

on

erle g.

on

Foundry Company

Burlington, N. J., April 23, 1959

April 29, 1959. '

Wm. M. Hickey,

The Board of Directors of Cities Service

I

President

•

June

public, has been declared payable

10, 1959, to the holders of record at
the close of business May 11,1959.

ness

holders of

declared

the second

Common Capital Stock of the Company,
issued and outstanding in the hands of the

;

Dividend Notice

declared

of $.75 per

as

1959, payable May 15, 1959 to stockholders of record on April 30, 1959.

IOWA SOUTHERN

Kennecott, Otis Elevator,
;; Standard Oil (N. J.),, Kimberly-

Allied Chemical

dividend of 32%

regular quarter-annual dividend for

Motors,

OIVIDEND

a

share designated

cents per

j

,

{
}

Company have de-

anteo

shareholders of record at the close of

Airplane

stock holdings
B&O, General

NOTICE

Trustees of The Title Guar.

rr

Cities Service

,

Chrysler, Homestake Mining, and
American
World "Airways.

Reductions in prior

COMPANY

declared

Pan

"include

THE TITLE GUARANTEE |
DIVIDEND)

j. F. McCarthy,

portfolio

Boeing

Allis-Chalmers,

!

business

....

DIVIDEND NOTICES

Company, payable June 15, 1959,r to

DIVIDEND NOTICES

(N. Y.),
International- ^Nickel,
Monsanto,
RCA, and Tennessee Gas Trans¬

Ad-

ELECTRIC

AMERICAN

tually

stocks

Sears,:' Itoefeiiek>^iDetrpit^disoii,

.

the

corppratjpm continued to be vir¬

First National City Bank

mission.

DIVIDEND NOTICES

sharply, arid

at the

9,660

Diego Gas & Electric and
dressograph-Multigraph.

oif

using

even

Manufacturing.

Reductions in investment posi¬
resulted from sales of San

tions

ac¬

the Accumu¬
lation Pian to build up their in¬
vestments in the Corporation has
increased

Black and Decker

47.

gai|n

Investors

earlier.

&

tric, Tampa Electric, Polaroid and

shares werq
held by 21,444 investors on March
31.
This was 27% more than 12
months

Casualty

Surety,
OwensCorning Fiberglas, Pioneer Nat¬
ural Gas, Oklahoma Gas & Elec¬

share dis¬

fully invested in common
during the quarter.
-j■]
_:12.':nib^'s';earlier. Net new funds Ay New investment positions were
..invested,;by. shareholders totaled established through the purchase
$3,993,241- during the three-month : yof;' Florida
Power Corporation,
period. This was a record for any
Westinghouse Electric, Ryder Sys¬
comparable period in! the Fund's
tem,. Allied! Chemical, American
history".

"

Ih

taking

cents

from

Western

American Electric Power,

investments.

on

National

55% 'from $66,226,618 reported

of

inr Jfrq.. past
V* !'*'&'• *V01'-.-:

'j

1958,

the 60

realized
■

Invests

ors-Cp)*poration passed the $100

"

1 chaveS: been;,

23rd

tributed last December from

^.warned against- purchases' based
on
tips, rumors, greed, and gulli-.

;

31,

■National Assets! count

margin requirements to 90%. The
New; York , Stock! Exchange has

<

earlier and up 42%

March

System has increased stock

serve

Investors'

of operations.

months

regulatory agencies have

steps to assure sound marconditions. The Federal*Re-.

ket

National

of

Messrs. Ram
Service1, of; Indian a, and Reynolds dolph and Brown reported that
Metals.' .*!'• •" y. ,this was 5.1% higher than three

■taken
*

(2027)

historically Exploration, Parke Davis, Public

year;

recoveries

business
•

a

The Commercial and Financial Chronicle

.

.

has been, in

The recovery

ward.

.

Milwaukee/ Wisconsin

v

Notice of

STOCKHOLDERS

ANNUAL MEETING OF
to be Held

'"

-

May S, 1959

NOTICEIS HEREBY. GIVEN,

that

>.

Sinclairi

/

Meeting of stockholders of
ALLIS-CHALMERS MANILFAC- .;.
TURING COMPANY,: a Delaware

the Annual'
.

(hereinafter called
the
"Company"), will be held at the general
the Company, 1205 South 70th
Street,
West
Allie,
Wisconsin, on
Wednesday, Mayffl, 1959, at 11:00
A.M. (Central Daylight Time), for the "

2.

To consider and transact any

business that may

•-

other
—

properly come
attorn¬

215TH COMMON

before the meeting or any
ment thereof

.

7

-

The Board of Directors has
;

annual

meeting

or

adjournment

any

thereof.
"

By order of the Board
ARCHIE D.

of Direct**!

DENNIS,
Secretary

Dated: Mareh 19. 1959




A regular dividend of One

'•5

DIVIDEND

Dollar ($1.00) per share has

American
Tobacco Company, payable in cash on June 1, 1959, to
stockholders of record at the close of business May 8, 1959.
been declared upon

fixed March

19, 1959, ae the record date for the determination-of the common stockholders
•ntitled to notice of and to vote at this

■

r

Birmingham, Alabama

;

No. 114

■

Common Stock Dividend No. SI

of Directors;

\

--

DIVIDEND

thereof:

porpoeea. or any

To elect a Board

5
■

COMMOiTsTOCK

offices of

1.

GAS

COMPANY

corporation-

following

SOUTHERN
NATURAL

xMV

the Common Stock of The

Checks will be mailed.
Harry L. Hilyard

April 28, 1959
«

©a.

t. Co.

Vice President and Treasurer

On April 22, 1959 a regular
quarterly dividend of 75
cents per share was declared
on
the Corporation's Com¬
mon Stock, payable June 15,

1959 to stockholders of

A
has

been

per

declared

share
the

on

Common Stock of Southern

■

:

close

of

business

on

May

29, 1959.

Sinclair
CORPORATION

600 Fifth Avenue

New York

20, N. Y.

5
:

stockholders of record at the

rec¬

May 15,1959.

OIL

S

■

Natural Gas Company, payable
June
12,
1959 to

ord at the close of business
on

regular quarterly divi-

dend of 50 cents

>

■

•
;

H. D. McHENRY,

!

5

Vice President and Secretary.

J

Dated: April 25, 1959.

!

48

The Commercial and Financial Chronicle

(2028)

.

.

Thursday, April 30, 1959

.

BUSINESS BUZZ
on

•

•

Behind-the-Seen# Interpretation*

from the Nation'* Capital

,

D. C.—Bills
three Federal

WASHINGTON,

give

would

that

agencies authority to
regul at e virtually all bank
mergers seems assured ol' pas¬
sage in the Senate before long.

banking

this

bank
would
be required
to receive
a d v a n e e
approval before it
could acquire the assets of an¬
other bank by merger, consoli¬
dation, or absorption.
Under

proposal

Written consent would be re¬

resulting bank is
national bank; the Fed-^

assuming,
to be

era!

a

or

bank

sulting

is

b

k

member

a n

re¬

State

the

of

a

Fed¬

System; or the
Deposit Insurance

Federal

Corporation
bank is
a

the

be

to

Reserve

eral

*

if

Board

Reserve

if

resulting

the

State bank that is not

a

member

of

the

Re¬

Federal

System, but is insured by
FDIC.
Also the Attorney Gen¬
eral would be required to give a
report on the competitive fac¬

serve

tors involved.
Senator

A.

the

maintains

also

Committee

there

1921

In

proposed bill contain¬
amendments to
the patent section of the Atomic
Energy Act—Reports and In¬

ing

dustrial News Branch,

the

increase,

population

decreased

lias

than

of the

Beat

not

to

department

or

Board,

Committee, and his

rency

miitee

com-

colleagues approved

bank

merger

requirements

bill

and

the

reserve

legislation

re-

tion

a

of social

Procedure

"Dear
of

Sir:

Have

'w'

cently.

['■ f

*

1 *

For years now bank mergers
been
taking place at a

Board

Reserve

a

ceivable

The

banking industry is meet¬
ing the stiffest kind of compe¬
tition for savings from- insur¬
ance
companies, savings and
loan associations, credit unions,
and various/ other, types of in¬
stitutions
engaged
in lending

that

on

or

banks

insolvent

bank

while

a

could

fairly lively pace.
The Senate
in 1956 during the 84th session
of Congress approved legislation

three different Federal agencies

died

in the House.

The House

Banking and Currency Commit¬

tee^ has held no hearings
similar legislation thus far.
Of

course

any

legislation

on

have

become

proposed merger

a

Federal Reserve

tlie

ap¬

sured

that

the

should

he

merger

tion

Mergers Beneficial
the pending legislation. Ac¬
tually, the agency has supported
the proposal all along.
William
McChesney Martin, Jr., Chair¬

vors

the Board

Reserve

of the

Fed¬

System, maintains
that
the
bills
would
provide
means
of
controlling
bank
mergers, and prevent undue les¬
sening of competition in the
banking field.
At the
ers

and

same

must

time bank

consolidations

instances,

as

merg¬

in

Federal

admit, have

many

officials

strengthened

banks as to their capital posi¬
tion, character and management.
By
merging
they have
been
better able to meet the business

requirements

of

their

respec-'

that

approval should not be
the

adverse

ef¬

lessening of competi¬
outweighed by the fav¬

a

are

There were 100 bank mergers
in 1952, and the number rose at
a marked rate reaching a peak
of

231

Since

consolidations
1955

Changing times bring about
conditions.

Banking

the

in

1955.

number

has

gradually decreased with 189 in
1956,

162

1958.

■

in

1957,

and

154

'

Of the
45

were

in

,

154 mergers last year.
where the result¬

cases

ing bank was a State member
bank.
Only 21 were subject to
approval by the Board of Gov¬
of

ernors

System.
Joseph
dent

the

and

M.

Reserve

Naughton,
Second

Presi¬

National

Cumberland, Md., and a
member of the American Bank¬
ers

Association's Committee

of

the

Legislation, made

most

pertinent

tions given before
tee.
1

justice in Asian
the

within

coun¬

framework

of

banker.

fully

on

some

observa¬

the commit¬

lie

went

emphasize,

bank

proposed

the

on

merger

competitive

basis

assess

try, 100 of these banks control
approximately 46% of the na¬
tion's
total
assets, and more

test.

than 48%

posits.

Favor Justice Dept. Approval
Northern

Four
the

Banking

Committee,
stantially
their

Democrats

regarded
as
more
liberal

banks

In

than

Republican
committee, have
filed a supplemental report on
the proposed legislation.
They
are
Senators Paul H. Douglas,
of Illinois; Joseph S. Clark, Jr..
of
Pennsylvania;
William
E.
Proxmire, of Wisconsin, and Ed¬
mund Muskie, of Maine.
quartet of Democrats saicl

centers,
than

more

of

support

Senators

four

80%

of

1958

their sharply
the
four

views,

presented
1,330

some

banks

a

table

commercial

disappeared

by

mergers

committee

of

competition.

giving
voice

the

in the matter is

an

record

abso¬

in these

a

per¬

matters by

Company,
3414
Book
Tower, Detroit 26, Mich., $20.00.

Southeastern

formerly

joined the staff of
Company,

Building.

with

J.

in

Programs

and ExpendituresMichael T. Wermel—California
Institute

of Technology, Pasa¬
dena, Calif, (paper), $1.00.

Financial

ness

—

Security

Inde¬

and

Guide

Lee

He

to

was

Peeler

franchising of

small business operations—Pilot

Publications, 42 West 33rd St.,
New York 1, N. Y., $2.00.
World

Bank

at

Loans

brochure

Bank

for

Work

—

Inter¬

—

Reconstruc¬

and

Street,
C.

World

Development, 1818 H
N. W., Washington 25,

%

(paper).
Development

Giant

Leon

GREENSBORO, N. C.—Charles

Securities

Trends

Protection:

Health

Peace

H.

Corporation:

and

Plan—Benjamin

(Special to The Financial Chronicle)

United

Third
N. Y.

search

A

Joins United Sees.

T. Bowers has

—

of American Associations, 2nd Edition—Gale Re¬

D.

The Department

of Justice does not have
fect

why

General's

Attorney

lute necessity.

is

1958

Encyclopedia

pretation from the nation's Capital
arid may or may not coincide with
the "Chronicle's" own views.]

"shows

That

States,

Institute, Statis¬

Department,
750
Avenue, New York 17,

tion

little feeling for the need

very

United

national

only too clearly that they have

'

tical

[This column is intended to refleet the "behind the scene" inter¬

the testimony given by officials

the

the

Edison Electric

Illustrated

and consolidations.

of the Federal banking agencies

',

pendence Through Small Busi¬

showing that from 1950 through

members of the

The

own

anti-merger

col¬

the

and

financial

all commercial assets.

sub¬

Southern Democratic

leagues,

on

of the total bank de¬

In 10 of the nation's 16

leading

Currency

and

in

•

isolated

an

largely

Their report added that of the
commercial banks in the coun¬

large, sole¬

or

of

and

by the very groups
they were
created
to
regulate.
In this respect there
is nothing sacrosanct about the
bank regulatory agencies."

testi¬

transaction, small
ly

influenced

\ ;

(paper).

Electric Utility Industry Statistics

controlled

right¬

his
that it is wrong to

mony,
any

to

on

in

—
Inflation,
productivity, profits and
competition — American Iron
and
Steel Institute,
150 East
42nd Street, New York 17, N. Y.

wages,

which

Maryland

the

Steel Industry

the

regulatory bodies which are set
up to protect the public to be¬

banking

the

as

said

are

"There is a pronounced ten¬
dency in American life for the

closely regulated

supervised

industry,

the hanks than

three examining bodies.

It is doubtful that any indus¬
as

But it is less influ¬

means.

come

try today is

before

the

of

Federal

Bank,

Federal

tive communities.

changing

effects

any

enced by

money.

orable factors."

Treasury Department fa-

.of

competitive

considered, and

"unless

fects of

eral

that

proposed merger of in¬
banks should he scruti¬

every

given

Congress in

1960.

man

maintained

committee,

would still be live at the second

The

System, in

his testimony before the Senate

session

86th

of

nized before it is consummated;

proved by the Senate this year
of the

Governors

of

Board

the

\

Robertson, member

James L.
of

or con¬

under advisement.

solidation

development

Economic Trends in the Iron and

the

and

C.

—

promo¬

Democracy—Ceylonese National
Council, International Chamber
of Commerce, Washington, D. C.
(paper).

recreation room?"

the question
.whether
a
particular merger
Iwould be good.or bad. It is con¬
pass

have

requiring banks to give advance
notice.
Again in 1957 similar
bills got through the Senate, but
each
time the legislation has

tries

considered how the installation
color telephone will enhance the decor of your
you

law, by the Comp¬
troller of the Currency, the Fed¬
to

economic

of

on

assistance in the provision

and

becomes

eral

Conference

Loganathan—Report

Perhaps there will be sub¬
time-consuming, if the

FDIC

it is,

460 Park Avenue,
22, N. Y.

Development Savings Bank

stantial
bill

What

—

Inc.,

New York

agency

approve

Board

Industrial

tional

bank merger,

Robertson,

1 West
N.
Y.

does, Who supports it—
explanatory pamphlet — Na¬

necessary

Federal

Fourth

the

Meek—

What it

clude the Department of Justice
as

H.

R.

—

B.

Conference

to
amend the series of bills to in¬
was

Stocks

Thomas

and

( /

;

Living

Avenue,

serve

the committee hear¬
ings on the proposed legisla¬
tion, Jesse P. Wolcott, Chairman
of the FDIC, and
others said
it

Vantage

of

Reports, Inc.,
Larchmont,
(paper), $3.95.

course,

During

that

Cost

Business

communities.

their

Rising

Weber

little

adequately

the

With

num¬

14,000 banks have

that

Commis-

sion, Washington 25, D. C.

;

the

a

Of

14,000.

more

many

branches

to

Division
Services, United

States Atomic Energy

Despite tlie great

United States.

ber

in

a

proposed

-;of Information

approxi¬

were

banks

31,000

mately

Democrat of Virginia, chairman

0.

text of

that

ing, particularly with respect to
competitive factors.

of the Senate Banking and Cur¬

1

Policy—Statement of policy and,

are

Time-Consuming
Willis

Atomic Energy Commission Patent

present controls over merg¬
incomplete and confus¬

ers

a

quired from the Comptroller of i,
the Currency if the acquiring,

banking and

of both

sideration

competitive factors, but without
giving sole and controlling ef¬
fect to any single factor.
The

A.

Prosperity
Javits

Keyserling

and

Order

—

from Benjamin A. Javist—Leon
H. Keyserling, Room 1132, 1001
Connecticut
Avenue,
N.
W.,
Washington 6, D. C. (paper),
500 (quantity prices on request).

&

TRADING MARKETS

Co.

.

costs

;

have

risen

*

at

a

marked

clip in the past decade.
Over¬
head has gone up in the bank¬
ing field like
.

every other
(

it

has

nearly

industry,

through Deputy

At¬

torney General Lawrence
E.
Walsh, declares that legislation
to curb bank mergers is

"vitally

necessary."

told Senators Robertson: John J.

Botany Mills
Heywood-Wakefield

Sparkman. of Alabama: J. Allen

in

Nevertheless, the Department

of Justice,

American Cement
Vigorous Competition Now

Indian Head Mills

.The

Frear,
mund
J.

Glenn

The Banking and
Currency
Committee insists that the
pur¬
pose of the measure is to pro¬
vide for
:

control of all

mergers

under uniform and clear stand¬
ards calling
explicitly for con-




of

Mr.

Naughton

Delaware;

Muskie of Maine,

Beall

of

and

Morgan Engineering

Maryland,

is healthy and vigorous
competition in the banking in¬

tion.

W. L. Maxson

Ed¬

there

never

i

Jr.,
S.

are,

dustry today.

Present Controls Inadequate

^

facts

National Co.

Carl Marks

Co Inc.

Perhaps there has

been such keen competi¬

have failed to compete for busi¬
ness have been unable to
keep

with the growth
competitors.

pace

of

their

SECURITIES

20 BROAD STREET

TEL: HANOVER 2-0050

'w111' ■• j

.

Naughton
pointed
up
what most people already know.

Southeastern Pub. Serv.
United States

FOREIGN

Banking institutions which

Mr.

&

X

vu.'

'•

NEW YORK 5, N. Y.

TELETYPE NY 2-971

LERNER & GO.
Investment

10 Post Office
.

!»"><«••

Envelope

SPECIALISTS

■! 1

Securities

Square, Boston 9, Mass*
Teletype

Telephone
Htbbard 2-1990

\

BS 69

Volume 189

Number 5842

...

The Commercial and Financial Chronicle

TORONTO

BOND

TRADERS

lilSiSHI.^PCIATIQN^^xivijS:
AT TI1E

27th ANNUAL DINNER
APRIL 10,

KING EDWARD HOTEL

1959

0

A.

D. L.

Lascelles

G.

Campbell
Bros.

Denton

Canada




R

N

O

F. A. Blain

S

Malone

A

J. R.

Wood, Gundy A
Company, Limited

L. M. Wightman

R. A. White

Isard, Robertson and

Co. Limited

A Co.

Limited

Corpn. Limited

Limited

A. E. Ames

Limited

R

T.

Lloyd F. Gower

Sons

Treasurer

Midland Securities

A

fames Richardson

.

Equitable Securities

GOVE

Burns

s

N. K. Owen

Erwood

Limited

Ltd.

R

Secretary

Harris A Partners

Dominion Securities

Corpn.

ice

F

V ice-Chairman

Chairman

John

F

McCloskey

Royal

Bank of

Canada

A. Russell
Bank

of

Ex-officio

Smith

Montreal

chairman

2

The Commercial and Financial Chronicle...

PICTORIAL

Jack

Young, Dominion Securities Corpn. Ltd.; Dougr Ward, Dominion Securities
Parker, Dominion Securities Corpn. Ltd.; Bill Small, Bank of Montreal

Corpn. Ltd.;
(Montreal)

Bill

J. W. Rickaby, Royal Bank of Canada (Toronto); J. A. Leslie, Bank of Montreal
Baxter, Bank of Canada (Toronto); Harold Irving, Dominion Securities Corpn.
i
Bruce MacFarland,
Bank of Canada (Ottawa)

George Stanley, Royal Securities Corporation Ltd.; Bellman H. Mason, Anderson & Company Ltd.
Mickey McBride, Midland Securities Corpn. Limited; L. L. Bell, James Richardson & Sons

Barney

wt
I

320

Nieman,

Carl

Marks

&

Samuel F.

(

■

.

Gairdner %

Thursday, April 30, 1959

Co., Inc.

(New

York);

Jim

Colwell, W. E. Hutton

Traviss,

& Co.

S.

J.

(Toronto); J. T.
Ltd. (Toronto);

Brooks

&

(New York)

j

Gompany Limited
M'Leod,Young,Weir & Company

Bay Street, Toronto, Canada

LIMITED

Members:

We

provide

a

complete service for corporate

financing in Canada.
dealers

The Investment Dealers' Association

of Canada

Private enquiries from
are

invited.

Government, Municipal and

Corporation Securities
Members:

The Toronto Stock
:
•

v.'.

Montreal Stock

Canadian Stock

Exchange

Exchange

Winnipeg Stock Exchange

Exchange

Vancouver Stock Exchange

Stock orders executed

all

on

Exchanges

Head Office

50

Affiliate

Gairdner %
60

Member:
The Investment

KING

Montreal

Gompany Inc.

Ottawa

Calgary

Kitchener

STREET WEST,
Winnipeg

Quebec

TORONTO

London

Vancouver

Sherbrooke

Windsor

Hamilton

Edmonton

New York

WalhStreet, New York

/

Affiliate:

Dealers'
Association

of Canada

1




Calgary

Hamilton

London

Edmonton

Kingston

Montreal

Halifax

Kitchener

New York

Oakville
>

Toronto

Ottawa

Quebec

Winnipeg

McLeod,Young,Weir

Vancouver

&

Company

INC.

150

BROAD

STREET

.

NEW

YORK

Company;

Volume 189

Number 5842

...

PICTORIAL

The Commercial and Financial Chronicle

STOCKS

BONDS

Markets

maintained in all classes of

Canadian

external and internal bond issues.

Stock orders executed
Stock

Exchanges,

the Montreal and Toronto

on

net New York markets quoted

or

•

request.

on

Bernard J.

Conlon, P. F. Fox & Co., Inc. (New York); Edward J. Kelly, Carl M. Loeb, Rhoades & Co.
(New York); Jack Lascelles, Dominion Securities Corpn. Ltd. (Toronto); Lester Thorsen,
Glore, Forgan & Co. (Chicago)

wires

Private

to

Montreal,

Toronto,

Ottawa,

Winnipeg,

Calgary, Vancouver, Victoria and Halifax
TELETYPE

SYSTEM

BELL

NY

1-702-3

Dominion Securities Corporation
Associate Member American Stock Exchange

Boston

Ottawa

Canadian

Dominion

Securities
Russell

Corpn. Ltd.; James Strathy, Dominion
Smith, Bank of Montreal (Toronto)

Securities Corpn.

Affiliate

Montreal

Member Toronto,

—

and Canadian Stock Exchanges

Calgary

Lascelles,

Montreal
Winnipeg
Vancouver
Halifax

Telephone WHitehall 4-8161

London, Eng.

Jack

Toronto

40 EXCHANGE PLACE, NEW YORK 5

Philadelphia

Ltd.;

Canadian
Investment Securities

A. E. Ames & Co.

.Wfirfe

Limited

UNDERWRITERS AND DISTRIBUTORS

A. E. Ames & Co.
Members Toronto and Montreal Stock Exchanges

14 CITIES IN CANADA AND ENGLAND

OFFICES IN

E.

R.

Pope, Ross, Knowles & Co. Ltd.; Howard Wilson, Dominion
Ian Crookston, Nesbitt, Thomson and Company,

A. E. Ames & Co.

Securities Corpn. Ltd.;
Ltd.

Incorporated

Boston

New York

BUSINESS ESTABLISHED 1889

investment services in all fields are
dealers at our New York and
Chicago offices which have direct private wire connections
to offices in fifteen principal Canadian cities and London,

Established in 1905, our
available

institutions and

to

England.
Hank

Van

Silfhout,

Bank

of

Nova

Scotia;

Don

Boxer,

Burns

Bros.

&

Denton,

Ltd.;

Ben

Moore,
Ltd.

Bank of Nova Scotia; John Moore, Burns Bros. & Denton, Ltd.; Don Nauss, Burns Bros. & Denton,

These

enable

facilities

Exchanges

in

Canada

on all Stock
in United States

to

execute orders

at

net

us

or

prices

funds if desired.

Wood, Gundy & Co., Inc.
New York

Chicago

affiliated with

Wood, Gundy & Company
Members
The

Toronto Stock

of

Montreal Stock Exchange

Exchange
Canadian

Stock

Exchange

and

Wood, Gundy & Company
Limited
Head Office—36 King

Toronto
W. C. Pitfield & Company, Ltd.; (Toronto); H. A. Walcot, W. C. Pitfield & Company,
(Kitchener); Rodolphe Casgraine, Casgraine & Co. Ltd. (Montreal);
Hal Murphy,
Commercial and Financial Chronicle and Standard & Poor's Corporation (New York)

Ray Howe,
Ltd.




Branches

in

the

St. West

1, Canada

principal cities of Canada and

in London, England

3

4

The Commercial and Financial Chronicle...

PICTORIAL

Thursday, April 30, 1959

CANADIAN STOCKS
NEW

YORK

WALKER

Boston,

Cincinnati,

Chicago,

Buffalo,

5-1941-2

Philadelphia

Milwaukee,

Cleveland,
St.

and

ENTERPRISE

Detroit

Louis

6772

PITTSBURGH

,

ZENITH

0210

mmmmmmmmmm^^^

Harry

JAMES A. TRAVISS —MGR. U. S. DEPT.

Whittaker, Nesbitt, Thomson and Company, Ltd.; George Sythes, Fairclou gh Co.;
Meggeson, J. R. Meggeson A Co., Ltd.; Bob Trow, McConnell A Company, Ltd.

Bob

S.J.Brooks & Company
Members

The Toronto Stock Exchange
185 BAY STREET

TORONTO 1

Midland Securities Corpn.
LIMITED

Member: The Investment Dealers' Association of Canada

Irv

Canadian Government, Municipal
and Corporation

The Midland

Company

limited

Member: The Toronto Stock Exchange
Montreal Stock Exchange

•

Stock Order8 Executed

on

1§J

•

Canadian Stock Exchange

all Exchanges

Toronto: 50 King Street West
London: Huron & Erie

MacFarland, Nesbitt, Thomson and Company, Ltd.; Lloyd Garrett, Nesbitt, Thomson and Company,
Ltd.; Bill Scott, Gairdner and Company Ltd.; Bill Cooper, G. H. Rennie & Co. Limited

Securities

Montreal: 215 St. James Street West

Building

St. Thomas: 354 Talbot Street

Sault Ste. Marie: Midland Building

Kitchener: 2 Queen Street North

H.
A.

B.
E.

Gilbert, H. B. Gilbert & Co. Ltd.; H. G. Jarvis, A. E. Ames & Co., Inc. (New York);
St. Marie, Midland Securities Corpn. Ltd.; James A. Traviss, S. J. Brooks &
Company;
E. H. Gunn, Midland Securities Corpn. Ltd.
*

We specialize
or

in servicing dealers by obtaining

placing blocks of Canadian listed

or

over-the*counter

securities.

Our

on

Trading Department maintains firm markets

active issues and is available for all
types of dealer

transactions.

Arnold

B.

Massey, Mills, S pence A Co. Limited; Bill McAlpine, Brawley, Cat hers A Co.;
Scott, Ross, Knowles A Co. Ltd.; G. K. Anderson, A. E. Ames A Co. Limited

Lester

TRADING DEPARTMENT

EMpire

6-5831

'

t

WISENER

•dmmi

COMPANY

and

u

limited
/■

73 King Street West

•

Toronto, Canada

Telephone EMpire 6-6281

Members Investment Dealers' Association of Canada

•Affiliate

MACKELLAR, WISENER LTD.

Membera of The T won to Stock
Exchange




Eroie

Jarvis, Wisener and Company, Ltd.; D. E. Morrison, Royal Securities Corporation Ltd.; Harry

Tindale,

Collier,

Norris

A

Quinlan;

Bus

Moorhouse,

Deacon

Findley

Coyne

Limited

Volume 189

Number 5842

...

The Commercial and Financial Chronicle

PICTORIAL

Starting Point
As

a

CANADA

—

starting point for your investments in Canada, we
find our Monthly Investment Bulletin a
information.

believe you will
source of
helpful

It discusses regularly the significance of Canadian business
developments, and reviews current industry trends from the
standpoint of the investor. It also makes specific recom¬
mendations for the sound employment of investment funds.
To receive
return

a
copy of the current issue,
the coupon below. Our Bulletin

simply complete and
will be mailed to you

promptly and without obligation.
Lawrence

Goad, J. L. Goad dt Co.; Bob Reynolds, J. L. Francis &
Company, Ltd.;
R. A. Hutchison <ft Co.; Jack
McCullough, Charles King & Co.

Russ

Hutchison,

Ross, Knowles &c Oo
Members: The Toronto Stock Exchange
and The Investment Dealers' Association
25

George Ferguson, Toronto-Dominion Bank; William Beaty, Toronto-Dominion
Bank; J. A. McMillan,
Nesbitt, Thomson and Company, Ltd.; Doug McArthur, Royal Bank of
Canada; Bill Marshall,
W. C. Pitfield & Company, Ltd. (Sault Ste.
Marie)

of Canada

ADELAIDE STREET WEST, TORONTO, CANADA

Nesbitt, Thomson and Company,
Limited

i

355 St. James Street West,

350 Bay Street,

MONTREAL

MONTREAL

QUEBEC

KITCHENER

VANCOUVER
HALIFAX

TORONTO

TORONTO

WINNIPEG

VICTORIA

OTTAWA

HAMILTON

REGINA
SAINT JOHN

BOSTON

LONDON, ONT.

CALGARY

PREDERICTON

NEW

EDMONTON

MONCTON

YORK

ZURICH

Canada-Wide Bond Trading Services With

Affiliates in New York, Boston and Zurich

Nesbitt, Thomson and Company, Inc.
25 Broad
NEW YORK 4,
Larry

Street,

NEW YORK

Forbes, Nesbitt, Thomson and Company, Ltd. (Toronto); Art McCormack, Nesbitt, Thomson
and Company, Ltd.
(Montreal); Ai Duncan, Annett & Co. (Toronto); Nelson Lane,
Nesbitt, Thomson and Company, Ltd. (Toronto)

MEMBERS

Canadian

ALL LEADING
CANADIAN

Securities

STOCK AND COMMODITY

SPECIALISTS IN CANADIAN

EXCHANGES

SECURITIES
COMPLETE

FACILITIES

THE
FOR

INVESTMENT DEALERS

CANADIAN

STOCK

Burns Bros.

a

ASSOCIATION
AND

BOND

OF CANADA

Denton

Limited
I

®

,

Burns Bros.

James Richardson & Sons
EXECUTIVE

OFFICES

-

FROM

Denton

Inc.
44 King Street

OFFICES

&

WINNIPEG

ESTABLISHED 1887




&

TRADING

M O NTR EAL TO

VI CTO RIA

2 Broadway,

West,

HEW YORK 4

TORONTO 1

VANCOUVER

MONTREAL
WINNIPEG

HAMILTON

OTTAWA

5

6

The Commercial and

PICTORIAL

Financial Chronicle... Thursday, April 30, 1959

Dealers in

Government Bonds

SAUNDERS, CAMERON LIMITED
FIFTY-FIVE

YONGE

TORONTO

EMPIRE

TRADERS IN

STREET
Carnegie, Wisener and Company, Ltd.;
Robert, Wisener and Company, Ltd.;

J. G.

1, CANADA

Robert Wisener, Wisener and Company, Ltd.; Joseph
Ralph Browning, Wisener and Company, Ltd.

6-8601

—

INVESTMENT TYPE
BONDS & SHARES

J. R. Meggeson & Co.
LIMITED

ROYAL

BANK

BUILDING

TORONTO
Dan

MEMBERS:

THE

INVESTMENT DEALERS'

Lett,

Annett

Investment

ESTABLISHED 1921

A

Co.;

Dealers

James Annett,

Association

of

Annett A Co.; Jack Kingsmill,

Canada;

Jim

Pratt,

Equitable

Manager and Director of
Canada, Ltd.

Securities

ASSOCIATION OP CANADA

Brawley, Cathers & Co.
Members

Investment Dealers' Association
Toronto Stock

of Canada

Exchange

•

CANADIAN
GOVERN M ENT- M UN I CI P AL-CORPOR ATI ON

.

SECURITIES

•

CANADIAN

Cyrus Wilks, S. J. Brooks A Company; John McLaughlin, McLaughlin, Kaufman A Co. (New York
City); Gordon Simpson, S. J. Brooks A Company; Barney Nieman, Carl Marks A Co., Inc. (N. Y. C.)

BANK

OF

!V

COMMERCE

EMPIRE

BUILDING

3-5821

TORONTO

•

BELL, GOUINLOCK & COMPANY

Nigel Gunn, Bell, Gouinlock A
William

limitid

ISTABLISHID

*5 KING STREET

T.

Company, Ltd.; Charles McCutcheon, Bankers Bond Corporation, Ltd.
Cayley A Company, Ltd.; E. J. Allman, Annett A Co.

Bartlett, Bartlett,

1920

WEST, TORONTO

UNDERWRITERS AND DISTRIBUTORS OF
CANADIAN GOVERNMENT, MUNICIPAL
AND

CORPORATE SECURITIES

AFFILIATES

BELL, GOUINLOCK & CO.

LEGGAT, BELL, GOUINLOCK

incorporated

limitid

• 4 wall strut

members montreal stock exchanm

"«wtork

montreal




Art

Schieman,

Nova

Scotia;

Bank of Nova Scotia; Joe
Bill

Dahmer, Collier,

Gerroir, Collier, Norris A Qttinlan;

Norris A Qttinlan;

H. Seagram, Bank of

Peace, Dominion Securities Corpn. Ltd.

Don

I

Volume 189

Number 5842

...

PICTORIAL

The Commercial and Financial Chronicle

Mills?

Spc®c
Canadian

in»«tm«nt Sw"r^ yqrK 6,

| U5 BROADWAY

^

.,..zXCA^
Stewart

Phipps,

James

Richardson

Greenshields

&

Co.

&

Sons;

Limited;

Neil
Jack

Edwards,
Vale,

James

Richardson

Greenshields

&

Co.

&

Sons;

Peter

Cole,

A

w5ETs?ir &

Limited

N.V.

*

Limited

-r^O LONDON, ENG.

a

i

_

a

Mil»e^

"^pcnce&C«.
^lled

—^iis

Frank

Hull, Toronto-Dominion Bank; George Mills, Royal Securities Corporation Ltd.; Howard Bennett,
James Richardson & Sons; A1 Thompson, James Richardson & Sons

Underwriters

.

.

Distributors

.

.

.

Government of Canada Bonds

.

Dealers

Treasury Bills

Provincial and Municipal

Debentures

Corporate Bonds and Shares

EQUITABLE SECURITIES CANADA LIMITED
Member

of The Investment Dealers' Association of Canada

EQUITABLE BROKERS LIMITED
Member
Mills, Spence & Co., Ltd.; Jaime Roberton, Greenshields & Co. Ltd.; James Crysdale,
Mills, Spence & Co., Ltd.; Derrick Leach, Mills, Spence & Co., Ltd.; Bob Nichols, Mills, Spence & Co.,
Ltd.; Jack Van Duzer, Mills, Spence & Co., Ltd.

of The Toronto Stock Exchange

David McCart,

Head Office
60 Yonge
MONTREAL

WINDSOR

•

Street, Toronto, Canada
•

HAMILTON

U. S. Subsidiary y Equisec

Associated Company: Kleinwort, Sons
Direct private wire with

Phil Bartlett,

Dominion Securities Corpn. Ltd.; Frank Munro, McLeod,
Hull, Toronto-Dominion Bank; Mo. Scott, Dominion

Frank

HALIFAX

•

•

KITCHENER

Canada Inc.
& Co., Ltd., London, Eng.

Goldman, Sachs & Co., New York

Young, Weir & Company, Ltd.;
Securities Corpn. Ltd.

,HBeAC
e H\

.

ON*'0?""
e ®

M

« T

Members

deacon

FINDLEY

COYNE

limited
Members

Investment

Goreraaeol,

197

Bill

Boothe, Burns Bros. & Denton, Ltd.; Michael Grills, McLeod, Young, Weir &
Howard* McLeod, Young, Weir & Company, Ltd.; Doug Pearson, McLeod,
Company, Ltd.; Bob White, James Richardson & Sons

Ernest




Company, Ltd.;
Young, Weir &

BAY

Dealers' Association

of Canada

Municipal and Corporation

Bonds

STREET, TORONTO,

CANADA

7

8

The Commercial and Financial Chronicle... Thursday,

PICTORIAL

April 30, 1959

Harris & Partners Limited
55 Yon^e Street

507 Place d'Armes

TORONTO

MONTREAL

Investment Securities

1

%

Affiliate

Ben

Scott,

Dominion Securities Corpn. Ltd.; Jack Lascelles,
Dominion Securities Corpn. Ltd.

Don Erwood, Harris A Partners Ltd.; David R. Dattels Dattels A Company Ltd., (Kitchener); W. A. Stewart,
Midland Securities Corpn.

Ltd. (Montreal)

Harris Si Partners, Inc.
BROAD

15

STREET, NEW YORK 5

Howard

Hunter,

Ramsay,

Collier Norris

&

Equitable Securities Canada Ltd.;
Ramsay Securities Co. Limited

Alex

Jim Granton, Matthews A Company, Ltd.;
Frank Leslie A Co.; Jim Belshaw, Brawley,

Harold Fallis,
Cathers A Co.

Quinlan

MEMBERS
MONTREAL

CANADIAN

STOCK

STOCK

EXCHANGE

EXCHANGE

Collier Norris

&

Quinlan

Limited
MEMBERS
The

Investment

Dealers'

Association of Canada

Toronto

Montreal

Roland

McDade, Canadian Bank of Commerce; G. D. Little,
Securities
Corpn. Ltd.; J. J. Rutledge,

Dominion

Canadian Bank of Commerce

Bob Turner, Bankers Bond Corporation Limited; Peter Ferriss, Bartlett, Cayley A Company, Ltd.; George Ollerenshaw,
Wills, Bichle A Co.

@

f

HP

Jlil#

if

Annett &

Company Limited
Member

Canadian Government, Municipal
and

fill

Corporation Securities

The Investment Dealers' Association of

Canada

*

wW
mm

Security Underwriters

Stock and Bond Dealers

W

ANDERSON

Annett Partners Limited

& COMPANY

LIMITED

Member
Toronto Stock

TORONTO

Exchange

Members

The Investment Dealers' Association of Canada
A. L. Anderson

A. L. Howard




B. H. Mason

M. D. Cox

M. D. Saunders

Harry Tindale, Collier, Norris A Quinlan;
Leonard

220

Bay Street

Toronto, Canada
Barlow,

Weir

A

McLeod,

Young,

Company, Ltd.

Telephone
EMpire 3-7361